2014 Interim Report of Wuhan Boiler Company Limited Wuhan Boiler Company Limited
2014 Interim Report
2014-075
August 2014
2014 Interim Report of Wuhan Boiler Company Limited Section I Important Notes, Contents& Definition
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 Interim 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.
The Companydidn’t plan not to distribute cash dividends, or grant bonus shares, or transfer capital reserves into share capital.
Mr. Yeung Kwok Wei Richard, Company Principal, Mr. Chin Wee Hua, the Accounting Principal, and Mr. Li Yihao, the AccountingDivision’s Principal (Accounting Manager), hereby ensure that the Financial Report enclosed in this Interim Report is true, 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.
2. The Second ExtraordinaryShareholders’ Meeting 2014 was held on May 23, 2014. The Debt-to-equity Conversion Plan was vetoed by the meeting. It is difficult for the Company to find other solutions to turn its net asset value from negative to positive by the end of 2014. Meantime, the Company has reminded the risks in the Debt-to-equity Conversion Plan as follows: if the Plan cannot be completed before the first half year of 2014, financial costs arising from the relevant debts would create a significant burden on the financial result of the Company in the year of 2014, and it will be fairly difficult for the Company to have a positive net profit, whether before or after deducting non-recurring profits/loss, and theCompany’s stock will also be facing the risk of delisting.
3. 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.
In the report period, the net profit attributable to shareholders of the Company was 8,214,639.10, and the net assets attributable to shareholders of the Company were -1,355,276,203.03. If the Company fails to meet the requirements for listing resumption, the stock of the Company will be delisted. The Board of Directors hereby reminds investors of investment risks.
4. Currently, following the action plan formulated by the Board of Directors for listing resumption, the Company enhances internal management, strictly controls costs and focuses on production for overseas orders and tendering of domestic orders.
5. Securities Times, Ta Kung Pao and www.cninfo.com.cn are designated by the Company as information
disclosure media. All information of the Company shall be subject to the disclosure of the Company on the said
2014 Interim Report of Wuhan Boiler Company Limited media. During listing suspension, in strict compliance with the Company Law, the Securities Law and the Stock Listing Rules of Shenzhen Stock Exchange, the Company will fulfill its duty of information disclosure and disclose the actions taken for listing resumption and relevant progress on a monthly basis in time.
2014 Interim Report of Wuhan Boiler Company Limited Contents
2014 Interim Report........................................................................................................................... 1 Section I Important Notes, Contents& Definition.......................................................................... 2 Section II Company Profile ............................................................................................................... 6 Section III Summary of Accounting Data and Financial Indexes ................................................. 8 Section IV Report of the Board of Directors ................................................................................. 10 Section V Significant Events ........................................................................................................... 18 Section VI Changes in Shares and Particulars about Shareholders ........................................... 32 Section VII Preferred Shares .......................................................................................................... 36 Section VIII Particulars about Directors, Supervisors and Senior Management ...................... 37 Section IX Financial Report .............................................................. Error! Bookmark not defined.8 Section X Documents Available for Reference ............................................................................ 140
2014 Interim Report of Wuhan Boiler Company Limited Definition
||||
|-|-|-|
|Term|Refers to|Definition|
|CSRC|Refers to|China Securities Regulatory Commission|
|Hubei CSRC|Refers to|Hubei Securities Regulatory Bureau under China Securities Regulatory|
|||Commission|
|SZSE|Refers to|Shenzhen Stock Exchange|
|The Company Law|Refers to|The Company Law of the People’s Republic of China|
|The Securities Law|Refers to|The Securities Law of the People’s Republic of China|
|The Stock Listing Rules|Refers to|The Stock Listing Rules of Shenzhen Stock Exchange (Revised in 2012)|
|The Articles of Association|Refers to|The Articles of Association of Wuhan Boiler Company Limited|
|Controlling shareholder|Refers to|Alstom (China) Investment Company Limited|
|WBG|Refers to|Wuhan Boiler Group Co., Ltd|
|Lanxiang Company|Refers to|Wuhan Lanxiang Energy & Environmental Protection Technologies Inc.|
|Alstom|Refers to|Alstom (a France-listed company)|
|Alstom Holdings|Refers to|Alstom Holdings|
|Company, the Company|Refers to|Wuhan Boiler Company Limited|
|The cninfo website|Refers to|http://www.cninfo.com.cn|
|Report period|Refers to|Jan. 1, 2014- Jun. 30, 2014|
|Yuan, Thousand Yuan, Million Yuan,|Refers to|RMB Yuan, RMB Thousand Yuan, RMB Million Yuan, RMB Billion|
|Billion Yuan||Yuan|

2014 Interim Report of Wuhan Boiler Company Limited Section II Company Profile
I. Basic information of the Company
|||||
|-|-|-|-|
|Stock abbreviation|*ST WuguoB|Stock code|200770|
|Stock exchange listed with|Shenzhen Stock Exchange|||
|Chinese name of the Company|武汉锅炉股份有限公司|||
|Abbr. of the Chinese name of||||
||武锅股份|||
|the Company (if any)||||
|English name of the Company||||
||WUHAN BOILER COMPANY LIMITED|||
|(if any)||||
|Abbr. of the English name of||||
||WBC|||
|the Company (if any)||||
|Legal Representative of the||||
||Yeung Kwok Wei Richard|||
|Company||||

II. Contact information
||||
|-|-|-|
||Board Secretary|Securities Affairs Representative|
|Name|Xu Youlan|Hou Li|
||No. 1, Liufangyuan Road, East Lake New|No. 1, Liufangyuan Road, East Lake New|
|Contact address|||
||Technology Development Zone, Wuhan, Hubei|Technology Development Zone, Wuhan, Hubei|
|Tel.|（027）81993700|（027）81994270|
|Fax|（027）81993701|（027）81993701|
|E-mail|youlan.xu@power.alstom.com|li.hou@power.alstom.com|

III. Other information
1. Contact information of the Company
Did any change occur to the registered address, office address and the postal code, website address and email address of the Company during the report period?
□ Applicable√ Inapplicable
The registered address, office address and the postal code, website address and email address of the Company did not change during the report period. The said information can be found in 2013 Annual Report.
2. About information disclosure and where this report is placed
Did any change occur to information disclosure media and where this report is placed during the report period?
2014 Interim Report of Wuhan Boiler Company Limited□ Applicable√ Inapplicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this Interim Report and the location where this Interim Report is placed did not change during the report period. The said information can be found in 2013 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the report period?
□ Applicable√ Inapplicable
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not change during the report period. The said information can be found in the 2013 Annual Report.
2014 Interim Report of Wuhan Boiler Company Limited Section III Summary of Accounting Data and Financial Indexes 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
|||||
|-|-|-|-|
||Report period|Same period of last year|Year-on-year change|
|Operating revenues (RMB Yuan)|496,898,159.52|462,281,106.75|7.49%|
|Net profit attributable to shareholders of|8,214,639.10|-36,438,887.02||
||||122.54%|
|the Company (RMB Yuan)||||
|Net profit attributable to shareholders of||||
||7,868,973.11|-39,283,319.56|120.03%|
|the Company after deducting non-recurring||||
|gains and losses (RMB Yuan)||||
|Net cash flows from operating activities|151,310,124.28|-249,198,005.65||
||||160.72%|
|(RMB Yuan)||||
|Basic EPS (RMB Yuan/share)|0.03|-0.12|125.00%|
|Diluted EPS (RMB Yuan/share)|0.03|-0.12|125.00%|
||As at the end of the report|||
|||As at the end of last year|Change|
||period|||
|Total assets (RMB Yuan)|1,263,659,174.36|1,339,647,873.78|-5.67%|
|Net assets attributable to shareholders of|-1,355,276,203.03|-1,363,490,842.13||
||||0.60%|
|the Company (RMB Yuan)||||

II. Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
√Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of the||Net assets attributable to shareholders of the||
||Company||Company||
||Report period|Same period of last year|Closing amount|Opening amount|
|According to Chinese|8,214,639.10|-36,438,887.02|-1,355,276,203.03|-1,363,490,842.13|
|accounting standards|||||
|Items and amounts adjusted according to international accounting standards|||||

2014 Interim Report of Wuhan Boiler Company Limited 2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
√Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of the||Net assets attributable to shareholders of the||
||Company||Company||
||Report period|Same period of last year|Closing amount|Opening amount|
|According to Chinese|8,214,639.10|-36,438,887.02|-1,355,276,203.03|-1,363,490,842.13|
|accounting standards|||||
|Items and amounts adjusted according to overseas accounting standards|||||

3. Explain reasons for the differences between accounting data under domestic and overseas accounting standards
□ Applicable√ Inapplicable
III. Items and amounts of non-recurring gains and losses
√Applicable□ Inapplicable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Explanation|
|Gains/losses on the disposal of non-current assets (including the|59,767.52|Gain/losses on asset disposal|
|offset part of asset impairment provisions)|||
|Government grants recognized in the current period, except for|288,888.00|DHDZ Finance Bureau’s IndustrialRapid Growth contribution awardin 2013 and deferred revenuerelated to new factory land use right|
|those acquired in the ordinary course of business or granted at|||
|certain quotas or amounts according to the country’s unified|||
|standards|||
|Other non-operating income and expenses other than the above|-2,989.53|Others|
|Total|345,665.99|--|

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
The Companydidn’t classify any non-recurring gain/loss item 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.
2014 Interim Report of Wuhan Boiler Company Limited Section IV Report of the Board of Directors
I. Overview
Trends in the power industry in 2014 are to vigorously develop clean energy, proactively develop hydro power, develop wind power in an orderly way, speed up development of solar power, proactively push forward development of bio-mass energy and geothermal energy, safely and efficiently develop nuclear power, and properly launch key nuclear power projects. In order to accelerate development of clean energy, 2014 will see the approval of new hydro power of 20 million KW, new wind power of 18 million KW and new PV of 14 million KW, all of which will take up60% of the total new capacity in a dispersed way. And feed-in tariffs for new energy will be reduced gradually. Feed-in tariffs for new energy such as solar power and wind power are expected to be at the same level with thermal power by 2020.
Alstom in France, the controller of theCompany’s controlling shareholder Alstom (China) Investment Co., Ltd., owns the world-advanced AGVTM rail transport technology and provides integrated power plant solutions covering a variety of energy sources, including coal, hydro, natural gas, nuclear and wind. With Alstom as a platform, the Company will continue looking for opportunities to move up to a new level of development. In the report period, the Management and all employees of the Company dedicated to the following five priorities set at the beginning of 2014:
1. The Company continued to strengthen its core competitiveness to provide high quality products cater for Global market including EN/ASME/IBR code with the strength of technology, brand and manufacturing capacity, and improve the manufacturing level.
2. The Company dedicated to expand its share in domestic market, capture export orders, improve its market position and increase the export ratio.
3. The Company continued to improve business operation management, focus on preparation of technologies and raw materials, continue with cost control, and strengthen project execution and quality control so as to complete orders with good quality and timely delivery.
4. The Company continued to provide more training to on-the-job employees, speeded up new technologies and new procedures adaption and improved labor productivity so as to satisfy various requirements of different quality standards form different orders.
5. The Company continued to improve its competitiveness in the markets, create favorable business models, and use its advanced technologies and strong manufacturing capacity to provide high quality products to customers. The main business scope of the Company remained the same in the report period. It is mainly engaged in development, production and sales of station boilers, special boilers, desulfuration equipment, other pressure vessels and auxiliary equipment. Operating revenue achieved during the report period was RMB 496,898,159.52, increased by7.49% over the same period of last year; operating profit was RMB 8,021,254.83, increased by122.17% as compared to same period of last year; and net profit attributable to shareholders of the Company was RMB 8,214,639.10, increased by122.54% over the same period of last year.
II. Main business analysis
Year-on-year changes in major financial data:
2014 Interim Report of Wuhan Boiler Company Limited Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Same period of|||
||Report period||YOY change|Main reasons for change|
|||last year|||
||496,898,159.52|462,281,106.75||Mainly due to the increase of material inputting|
|Operating revenues|||7.49%|forYanbu, Binzhou Beihai, Tanjung Bin projects|
|||||and contract revenue increase accordingly|
||432,828,651.37|449,540,053.90||Mainly due to the processing of Yanbu, Binzhou|
|Operating costs|||-3.72%|Beihai, Tanjung Bin projects this period and the|
|||||settle of Perawang project to release the cost.|
||7,661,970.06|6,460,847.20||Mainly due to tender department expense|
|Selling expenses|||18.59%||
|||||increase for more tender projects|
|Administrative|13,225,649.54|13,059,491.70|||
||||1.27%||
|expenses|||||
|Financial expenses|45,534,113.65|40,200,193.10|13.27%|Mainly due to loan interest increase this period|
||174,961.83|3,103,374.39||Mainly due to the decrease of reduction of the|
|Income tax expenses|||-94.36%|temporary deductible differences resulted from|
|||||contract loss provision release|
||151,310,124.28|-249,198,005.65||Mainly due to the return of the advance receipt|
|Net cash flows from|||||
||||160.72%|resulted from the change of the supply scope of|
|operating activities|||||
|||||the project contract in the prior period|
|Net cash flows from|-2,919,453.86|-1,557,553.65||Mainly due to the increase of cash out paid for|
||||-87.44%||
|investing activities||||the construction of new plant.|
|Net cash flows from|-135,307,976.66|133,805,900.00||Mainly due to the increase in return of entrusted|
||||-201.12%||
|financing activities||||loans|
|Net increase in cash|13,617,263.38|-114,387,590.26||Mainly due to the changes of net cash flows from|
||||111.90%||
|and cash equivalents||||operating and financing activities|

Major changes to the profit structure or sources of the Company during the report period:
□ Applicable√ Inapplicable
There is no major change to the profit structure or sources of the Company during the report period.
Progress in the report period of the future development planning in the disclosed documents of the Company such as IPO prospectus, share offer prospectus, asset reorganization report, etc.:
□ Applicable√ Inapplicable
Review the progress of the previously disclosed business plan in the report period:
In the first half of 2014, the Company actively explored the domestic market and signed Luo Yuan Contract. With the help of Alstom platform, the Company signed two overseas orders, Altamira and Opole. Meantime, the Company successfully closed Perawang project in Indonesia. In the report period, the Company provided more training to on-the-job employees, improved labor productivity, strictly controlled expenses and costs, strengthened project execution and quality control so as to complete orders with good quality and timely delivery.
2014 Interim Report of Wuhan Boiler Company Limited III. Breakdown of main business
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease|||
||||||Increase/decrease|Increase/decrease|
|||||of operating|||
||Operating||||of operating costs|of gross profit|
|||Operating costs|Gross profit rate|revenues over the|||
||revenues||||over the same|rate over the same|
|||||same period of|||
||||||period of last year|period of last year|
|||||last year|||
|Classified by industry:|||||||
|Manufacturing|494,874,319.77|432,556,617.39|12.59%|7.79%|-3.37%|10.10%|
|Total|494,874,319.77|432,556,617.39|12.59%|7.79%|-3.37%|10.10%|
|Classified by product:|||||||
|Boilers and|||||||
||494,874,319.77|432,556,617.39|12.59%|7.79%|-3.37%|10.10%|
|auxiliary|||||||
|Total|494,874,319.77|432,556,617.39|12.59%|7.79%|-3.37%|10.10%|
|Classified by region:|||||||
|Domestic|120,942,552.42|136,461,886.76|-12.83%|12.83%|9.34%|3.61%|
|Overseas|373,931,767.35|296,094,730.63|20.82%|6.26%|-8.28%|12.56%|
|Total|494,874,319.77|432,556,617.39|12.59%|7.79%|-3.37%|10.10%|

 Note: The main reasons of margin rate increase in the report period are due to:
(1) Revenue of main business in the report period is 494,874.32KRMB, increased7.79% from the same period last year, mainly due to the increase of material inputting for Yanbu, Binzhou Beihai, Tanjung Bin projects and contract revenue increased accordingly;
(2) Cost of main business in the report period is 432,556.62KRMB, decreased3.37% from the same period last year, mainly due to the execution of Yanbu, Binzhou Beihai, Tanjung Bin projects this period and the settlement of Perawang project to release the cost.
IV. Core competitiveness analysis
Core competitiveness represents the ability of a company to stay competitive in competition for a long time and is the key for the sustainable development of a company. Amid domestic and overseas markets and development opportunities, the Company is competitive in terms of brand, technology, marketing channel, etc.
1. Supported by the brand and technology advantages of Alstom
As a leader in the global power industry, Alstom has a history over 100 years inR&D of the boiler technology and a history of 50 years in technology licenses and products export, with footprints in about 100 countries and regions around the world. Its advanced thermal power boiler technologies mainly include subcritical, supercritical and ultra-supercritical utility boiler technologies, as well as supercritical and subcritical circulating fluidized bed boiler technologies.
2. Overall upgrade of theCompany’s core technologies
Officially acquired the Company in 2007, Alstom (China) Investment Co., Ltd. has51% shares in the Company.
2014 Interim Report of Wuhan Boiler Company Limited Up until now, the core part ofAlstom’s technology transfer to the Company has been completed and the Company has been provided the latest (ultra) supercritical boiler technology, materials, software and standards, as well as relevant personnel training. The Company is now able to produce utility boilers and their relevant products that are in line with ASME standard, EN standard and domestic GB standard.
3. Sharing the global marketing network of Alstom
Main utility boiler producers within Alstom are: Alstom Power System GmbH (in Germany), with the 1,000MW ultra-supercritical tower boiler technology; Alstom Power Systems SA. Etablissements Boilers (in France), with the large-sized circulating fluidized bed boiler technology; and Alstom Power Inc. (in the US), with the 600MW supercritical two pass boiler technology. The overall objective of Alstom towards the Company is to bring the Company intoAlstom’s global boiler market and improve its design, manufacture and management to globally advanced levels so that it can effectively provide products for the Chinese and overseas markets.
4. Expansion of the domestic market
At present, the Company has the strong core technology and the latest technological achievements of Alstom, as well as the world-leading production facilities and technologies, making it to be a competitor of Harbin Electric, Shanghai Electric and Dongfang Electric in the domestic utility boiler market.
5. Increase of export orders
The controlling shareholder of the Company and its related parties have provided all-rounded business support for the Company by helping it secure many main component subcontracting orders of overseas projects to expand the export market. Along with the overall upgrade of its technologies, the Company has gradually solidified its position in the domestic market.
V. Investment analysis
1. Investments in equities of external parties
（（（（1））））
Investments in external parties
□ Applicable√ Inapplicable
The Company did not invest in any external party in the report period.
（（（（2））））Shareholdings
in financial enterprises
□ Applicable√ Inapplicable
The Company did not hold any equity in any financial enterprise in the report period.
（（（（3））））Securities
investments
□ Applicable√ Inapplicable
The Company did not invest in any securities in the report period.
2014 Interim Report of Wuhan Boiler Company Limited 2. Entrusted financial management, derivative investments and entrusted loans
（（（（1））））Entrusted
financial management
□ Applicable√ Inapplicable
The Company did not make any wealth management entrustment in the report period.
（（（（2））））Derivative
investments
√ 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||derivative|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-|||||2015-||||||
|HSBC||No|FX|7,065.38|2013-8-27||7,065.38||22,697.67|16.76%|44.69|
||Relation|||||12-30||||||
||||contract|||||||||
||||Forward|||||||||
||Non-|||||2014-7||||||
|SCB||No|FX|2,020.17|2014-3-27||2,020.17||79.82|0.06%|-18.42|
||Relation|||||-2||||||
||||contract|||||||||
|Total||||9,085.55|--|--|9,085.55||22,777.49|16.82%|26.27|
|Capital source for derivative 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)||||||||||||

（（（（3））））Entrusted
loans
□Applicable√ Inapplicable
2014 Interim Report of Wuhan Boiler Company Limited 3. Utilization of the raised funds
（（（（1））））General
utilization of the raised funds
□ Applicable√ Inapplicable
（（（（2））））Projects
invested with raised funds as promised
□ Applicable√ Inapplicable
（（（（3））））Change
of projects invested with raised funds
□ Applicable√ Inapplicable
No change of raised-funds-invested projects in the report period.
（（（（4））））Projects
invested with raised funds
□ Applicable√ Inapplicable
4. Analysis to main subsidiaries and shareholding companies
√ Applicable□ Inapplicable
Main subsidiaries and shareholding companies:
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Company|Company|||Registered|||Operating|Operating||
|||Industry|Main products/services||Total assets|Net assets|||Net profit|
|name|variety|||capital|||revenues|profit||
||||R&D, design, consultation|||||||
||||and technology services|||||||
||||related to boilers, energy &|||||||
||||environmental protection|||||||
||||products, steel structures,|||||||
|Wuhan||||||||||
||||thermal energy-related|||||||
|Lanxiang||||||||||
||||products and their auxiliary|||||||
|Environment||||||||||
||Subsidiary|Boiler|equipment; marketing of|20,000,000|16,518,059.48|15,172,995.29|0|-453,602.21|-453,602.21|
|Protection||||||||||
||||products developed; energy|||||||
|Technology||||||||||
||||project (non-land|||||||
|Co., Ltd||||||||||
||||construction projects)|||||||
||||contracting and technical|||||||
||||service (special-purpose|||||||
||||projects subject to|||||||
||||governmental approval).|||||||

2014 Interim Report of Wuhan Boiler Company Limited 5. Significant projects of investments with non-raised funds
□ Applicable√ Inapplicable
No significant projects of investments with non-raised funds in the report period.
VI. Business performance estimate for Jan.-Sept. 2014
Warnings of estimated possible losses or major changes of the accumulative net profit achieved during the period from the beginning of the year to the end of the next report period compared with the same period of last year, as well as the reasons
□ Applicable√ Inapplicable
VII. Explanation of the Board of Directors and the Board of Supervisors on the “Non-standard Auditing Report” issued by the CPA firm for the report period
□ Applicable√ Inapplicable
VIII. Explanation of the Board of Directors about the “Non-standard Auditing Report” of last year
□ Applicable√ Inapplicable
IX. Implementation of profit distribution during the report period
During the report period, particulars about the execution of profit distribution plan, especially cash bonus plan, the execution of transferring capital reserve to share capital or any adjustment.
□ Applicable√Inapplicable
The profit distribution plan for 2013 is no cash dividends, no bonus shares and no transfer of capital reserve to share capital.
X. Preplan for profit distribution and transferring capital reserve into share capital for the report period
□ Applicable√ Inapplicable
The Companydidn’t plan to distribute cash dividends, or grant bonus shares, or transfer capital reserves into share capital for the first half of 2014.
XI. Particulars about researches, visits and interviews received in this report period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
|Time of|Place of|Way of|||Main discussion and materials provided by|
||||Visitor type|Visitor||
|reception|reception|reception|||the Company|
|||||1 shareholder with|How to vote for the Debt-to-equity|
|May 15, 2014|Wuhan|By phone|Individual|||
|||||tradable shares|Conversion Plan? How was the operating|

2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
||||||performance of the Company in 2014?|
||||||Would the Company arrange a second|
|||||2 shareholders with||
|Jun. 17, 2014|Wuhan|By phone|Individual||voting of the Debt-to-equity Conversion|
|||||tradable shares||
||||||Plan this year? Was there any other plan?|

2014 Interim Report of Wuhan Boiler Company Limited Section V Significant Events
I. Corporate governance
The Board of Directors of the Company continuously improved its corporate governance and standardized theCompany’s operation strictly according to the requirements of the Company Law, the Securities Law and other relevant laws and regulations. The Board of Directors thinks that the actual situation of corporate governance of the Company is in compliance with the requirements of Guiding Principle on Governing Listed Companies. (1) About shareholders andShareholders’ Meeting:
The Company convenes and holdsShareholders’ Meetings according to requirements of Opinions on Standardization ofShareholders’ Meeting of Listed Companies and Rules of Procedure for theShareholders’ Meeting of Listed Companies, the Company treats all shareholders equally, especially minority shareholders are insured to be equally treated and they can fully exercise their lawful rights.
(2) About relationship between the controlling shareholder and the Company:
The controlling shareholder complies with laws while exercising their rights as investors through theShareholders’ Meeting anddoesn’t, directly and indirectly, intervene theCompany’s decision-making and operation through other channels. The human resources, assets, finance, organizations and operations of the Company are independent from the controlling shareholder. The Company and the controlling shareholder maintain different financial accounts, and independently undertake commercial liabilities and market risks. Related transactions between the Company and the controlling shareholder are reasonable and fair, and its decision-making procedures comply with related regulations. The controlling shareholderdoesn’t occupy any fund of the Company and the Companydoesn’t provide any guarantee to the controlling shareholder and its subsidiaries.
(3) About directors and the Board of Directors:
The Company elects and engages directors strictly in accordance with procedure on director election, the Company Law and Articles of Association of the Company, ensuring that the director election is public, just, fair and independent. The Company ensures that the number and structure of directors is in compliance with provisions stipulated in laws and regulations. The meetings of the Board of Directors are convened and held according to the Rules of Procedure for the Board of Directors. Members of the Board of Directors perform and fulfill their duties honestly, diligently and responsibly. The Board of Directors establishes special committees, each of which performs its own duty and improves the efficiency of the Board of Directors.
(4) About supervisors and the Board of Supervisors:
The Company elects and engages supervisors strictly in accordance with procedure on supervisor election, the Company Law and Articles of Association of the Company. The Company ensures that the number and structure of supervisors is in compliance with provisions stipulated in laws and regulations. The Board of Supervisors inspects and supervises the legitimacy of activities of the Company finance, directors, senior management and other managers, safeguards the benefits and interests of shareholders.
(5) About information disclosure and its transparency:
Secretary of the Board of Directors is responsible for information disclosure and investor relationship management, including reception of visits and consultations from investors. Securities Times and Hong Kong Ta Kung Pao are designated by the Company as the newspapers for disclosing relevant information. According to laws, regulations and requirements of the Management Rules on Information Disclosure of the Company, the Company discloses the information authentically, accurately, timely and completely to ensure all shareholders have equal opportunity to acquire information.
2014 Interim Report of Wuhan Boiler Company Limited II. Significant lawsuits or arbitrations
√Applicable□ Inapplicable
|||||||||
|-|-|-|-|-|-|-|-|
||Amount|||Trial result||||
||involved in|Forming|Progress of|and|Enforcement|||
||the|the|the|influence|on the|||
|||||||Disclosure|Disclosure|
|Basic situation of the litigation (arbitration)|litigation|estimated|litigation|of the|judgment of|||
|||||||date|index|
||(arbitration|liabilities|(arbitration|litigation|the litigation|||
||) (RMB|or not|)|(arbitration|(arbitration)|||
||0’000)|||)||||
|In November 2001, Shenzhen Wangda Color Printing||||||||
|Packaging Co., LTD. signed a boiler supply contract||||||||
||||||||The Progress|
|with the Company (Contract No. 2001D011). In Sep.||||||||
||||||||Announcement|
|2003, both parties signed a supplementary agreement||||||||
||||||||of Wuhan|
|that Jiangsu Wangda Paper Co., LTD. (“Jiangsu||||||||
||||||||Boiler|
|Wangda”) would perform rights and obligations of the||||||||
|||||The effect|||Company|
|Contract. In Feb. 2004, after receiving the deposit of||||||||
|||||of this case|||Limited on|
|the Contract, the Company organized design,||||||||
|||||on profit in|||Significant|
|manufacturing and purchasing. In Nov. 2004, Jiangsu||||||||
|||||or after the|||Lawsuit or|
|Wangda requested the Company to postpone delivery||||||||
|||||report|||Arbitration|
|and stopped paying the rest payments, which caused|||||No judgment|May 6,||
|||No|Not closed|period is|||(No. 2014-048)|
|the project suspension till now. In Apr. 2011, Jiangsu|||||yet.|2014||
|||||subject to|||was published|
|Wangda sent a letter to the Company, asking to cancel||||||||
|||||the final|||on the|
|the Contract and return the deposit. However, some||||||||
|||||judgment|||Securities|
|costs and expenses were incurred during design,||||||||
|||||of this|||Times, Ta|
|manufacturing and purchasing of the Company. The||||||||
|||||case.|||Kung Pao and|
|Company agreed to terminate the Contract on the basis||||||||
||||||||http://www.cni|
|of no deposit return and sufficient compensation of||||||||
||||||||nfo.com.cn|
|losses. But Jiangsu Wangda didn't agree. Because no||||||||
||||||||dated May 6,|
|consensus was achieved on contract termination,||||||||
||||||||2014.|
|Jiangsu Wangda sued the Company before Wuhan||||||||
|Intermediate Court.||||||||
|On Jun. 28, 2013, the Amendment of Articles of|||||||1. The Progress|
|Association of Wuhan Boiler Company Limited (the|||||||Announcement|
|“AOA Amendment”) was reviewed and approved on||||The case|||of Wuhan|
|2012 Annual Shareholders’ Meeting of the Company.||||had no|||Boiler|
|Main revision is: Article 74 Shareholders shall issue||||substantial|A judgment||Company|
|separate and individual proxy for each shareholders’||||effect on|has been|Jul. 15,|Limited on|
|||No|Closed|||||
|meeting, and shall not issue long-term proxy. A proxy||||the profits|made.|2014|Significant|
|shall not sub-authorize other person to attend the||||in or after|||Lawsuit or|
|shareholders’ meeting or to exercise the voting right. If||||the report|||Arbitration|
|a proxy, who is a shareholder of the Company, is||||period.|||(No. 2014-066)|
|entrusted by five or more than five shareholders, he|||||||was published|
|shall collect the voting rights openly and complete|||||||on the|

2014 Interim Report of Wuhan Boiler Company Limited
|||
|-|-|
|relevant procedures according to the regulations|Securities|
|related to voting rights collection of the Company. A|Times, Ta|
|proxy, who is not a shareholder of the Company, shall|Kung Pao and|
|not be entrusted by five or more than five shareholders|http://www.cni|
|of the Company. However, the Collector stipulated in|nfo.com.cn|
|Article 88 shall be excluded. Article 88 The following|dated Jun. 24,|
|organization or person is entitled to collect the voting|2014.|
|rights from shareholders of the Company to vote at|2. The Progress|
|shareholders’ meetings:(i) The Board of Directors;(ii)|Announcement|
|Independent directors;(iii) Shareholders individually or|of Wuhan|
|jointly holding more than 1% shares of the Company.|Boiler|
|The Collector shall engage lawyers or state notary|Company|
|authorities to provide legal opinions with respect to the|Limited on|
|qualification of the Collector, collection plan, the form|Significant|
|of power of attorney, validity and effectiveness of|Lawsuit or|
|performance of the voting rights collected and other|Arbitration|
|related matters. The legal opinion or notarization shall|(No. 2014-071)|
|be published together with the report and the power of|was published|
|attorney in respect of the voting right collection in the|on the|
|media designated by the Company to disclose|Securities|
|information.|Times, Ta|
|Upon the requirement of Shenzhen Stock Exchange,|Kung Pao and|
|AllBright Law Offices issued the Legal Opinion on the|http://www.cni|
|AOA Amendment. In their opinion, the AOA|nfo.com.cn|
|Amendment did not violate any compulsory provision|dated Jul. 15,|
|of the existing laws and regulations, nor there was any|2014.|
|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.||
|Tradable share holder 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||

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|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 Extraordinary Shareholders’’ 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.|||||||
|||||||The|
|||||||Announcement|
|In September 2003, Dongfang Xiwang Baotou Xitu|||||||
|||||||of Wuhan|
|Aluminium Co., Ltd (“Baotou”) signed the Contract of|||||||
|||||||Boiler|
|2×350MW Boilers with the Company. During|||||||
||||The effect|||Company|
|executing the Contract, the Company fully|||||||
||||of this case|||Limited on|
|implemented delivery obligations according to the|||||||
||||on profit in|||Significant|
|Contract, but Baotou defaulted on the payment. The|||||||
||||or after the|||Lawsuit or|
|Company required Baotou to pay the overdue many|||||||
||||report|This case||Arbitration|
|times through various ways (including phone, fax and|||||August 6,||
||No|Not closed|period is|has not been||(No. 2014-073)|
|EMS), but Baotou claimed quality issues against the|||||2014||
||||subject to|heard yet.||was published|
|Company and refused to pay. It also refused to solve|||||||
||||the final|||on the|
|the pending problems through amicable negotiation|||||||
||||judgment|||Securities|
|with the Company. In May 2014, the Company sued|||||||
||||of this|||Times, Ta|
|Baotou before Inner Mongolia High Court, requesting|||||||
||||case.|||Kung Pao and|
|judgment against Baotou for paying overdue and|||||||
|||||||http://www.cni|
|undertaking liquidated damages and bank interests.|||||||
|||||||nfo.com.cn|
|Relevant evidences were submitted to the Court.|||||||
|||||||dated August 6,|
|||||||2014.|

 III.Media’s queries
□Applicable√ Inapplicable
There was nomedia’s common query during the report period.
IV. Bankruptcy reorganization
□Applicable√ Inapplicable
No bankruptcy reorganization occurred to the Company in the report period.
2014 Interim Report of Wuhan Boiler Company Limited V. Asset transactions
1. Acquisition of assets
□Applicable√ Inapplicable
The Company did not acquire any asset in the report period.
2. Sale of assets
□Applicable√ Inapplicable
The Company did not sell any asset in the report period.
3. Business combination
□Applicable√ Inapplicable
No business combination occurred to the Company in the report period.
VI. Implementation of equity incentive and its influence
□Applicable√ Inapplicable
The Company did not make or carry out any equity incentive plan in the report period.
VII. Significant related party transactions
1. Related party transactions relevant to routine operation
√Applicable□ Inapplicable
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Transacti|Proportio|||||
||||||||||Available|||
|||Type of|Contents|||on|n in the|||||
||||||||||market|||
|Related|Relations|the|of the|Pricing|Transacti|amount|same kind|Mode of||Disclosure|Disclosure|
||||||||||price for|||
|party|hip|transactio|transactio|principle|on price|(RMB|of|settlement||date|index|
||||||||||the same|||
|||n|n|||Ten|transactio|||||
||||||||||kind|||
|||||||thousand)|ns (%)|||||
||A|||||||||||
||subsidiary|||||||Settlemen||||
|ALSTOM|||||||||||http://ww|
||of the|Sale of|Sale of|Market||||t as per||April. 29,||
|Power|||||－|28,973.81|58.55%||－||w.cninfo.c|
||ultimate|products|products|price||||contract||2014||
|Inc.|||||||||||om.cn|
||actual|||||||term||||
||controller|||||||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||A|||||||||||
|Alstom|subsidiary|||||||Settlemen||||
||||||||||||http://ww|
|power|of the|Sale of|Sale of|Market||||t as per||April. 29,||
||||||－|3,232.59|6.53%||－||w.cninfo.c|
|Systems|ultimate|products|products|price||||contract||2014||
||||||||||||om.cn|
|Gmbh|actual|||||||term||||
||controller|||||||||||
||A|||||||||||
||subsidiary|||||||Settlemen||||
|ALSTOM|||||||||||http://ww|
||of the|Sale of|Sale of|Market||||t as per||April. 29,||
|Boiler|||||－|156.51|0.32%||－||w.cninfo.c|
||ultimate|products|products|price||||contract||2014||
|France|||||||||||om.cn|
||actual|||||||term||||
||controller|||||||||||
|ALSTOM|A|||||||||||
|Technical|subsidiary|||||||Settlemen||||
||||||||||||http://ww|
|Services|of the|Sale of|Sale of|Market||||t as per||April. 29,||
||||||－|34.89|0.07%||－||w.cninfo.c|
|(Shanghai|ultimate|products|accessory|price||||contract||2014||
||||||||||||om.cn|
|) Co.,|actual|||||||term||||
|Ltd.|controller|||||||||||
||A|||||||||||
||subsidiary|||||||||||
|||||||||Settlemen||||
|ALSTOM|of the|||||||||||
|||Render of|Render of|Market||||t as per||||
|(Switzerla|second||||－|17.12|9.24%||－|||
|||service|service|price||||contract||||
|nd) Ltd|largest|||||||||||
|||||||||term||||
||sharehold|||||||||||
||er|||||||||||
|ALSTOM||||||||||||
||A|||||||||||
|(Wuhan)||||||||||||
||subsidiary|||||||Settlemen||||
|Engineeri|||||||||||http://ww|
||of the|Render of|Render of|Market||||t as per||April. 29,||
|ng &|||||－|81.94|44.23%||－||w.cninfo.c|
||ultimate|service|service|price||||contract||2014||
|Technolo|||||||||||om.cn|
||actual|||||||term||||
|gy Co.,||||||||||||
||controller|||||||||||
|Ltd..||||||||||||
|ALSTOM|A|||||||||||
|Technical|subsidiary|||||||Settlemen||||
|||Purchase|Purchase||||||||http://ww|
|Services|of the|||Market||||t as per||April. 29,||
|||of raw|of raw||－|275.49|0.95%||－||w.cninfo.c|
|(Shanghai|ultimate|||price||||contract||2014||
|||material|material||||||||om.cn|
|) Co.,|actual|||||||term||||
|Ltd.|controller|||||||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||A|||||||||||
||subsidiary|||||||Settlemen||||
|ALSTOM|||||||||||http://ww|
||of the|Received||Market||||t as per||April. 29,||
|(Switzerla|||IT service||－|77.82|2.50%||－||w.cninfo.c|
||ultimate|service||price||||contract||2014||
|nd) Ltd|||||||||||om.cn|
||actual|||||||term||||
||controller|||||||||||
||A|||||||||||
||subsidiary|||||||Settlemen||||
|ALSTOM|||||||||||http://ww|
||of the|Received|Training|Market||||t as per||April. 29,||
|(Switzerla|||||－|26.49|0.85%||－||w.cninfo.c|
||ultimate|service|expense|price||||contract||2014||
|nd) Ltd.|||||||||||om.cn|
||actual|||||||term||||
||controller|||||||||||
||A|||||||||||
||subsidiary|||||||Settlemen||||
|ALSTOM|||||||||||http://ww|
||of the|Received||Market||||t as per||April. 29,||
|IS&T|||IT service||－|241.78|7.76%||－||w.cninfo.c|
||ultimate|service||price||||contract||2014||
|SAS|||||||||||om.cn|
||actual|||||||term||||
||controller|||||||||||
|ALSTOM||||||||||||
||Controllin|||||||Settlemen||||
|(China)|||||||||||http://ww|
||g|Received||Market||||t as per||April. 29,||
|Investme|||IT service||－|171|5.49%||－||w.cninfo.c|
||sharehold|service||price||||contract||2014||
|nt Co.,|||||||||||om.cn|
||er|||||||term||||
|Ltd.||||||||||||
|ALSTOM||||||||||||
||Controllin|||||||Settlemen||||
|(China)||||||||||||
||g|Received|Training|Market||||t as per||||
|Investme|||||－|2.8|0.65%||－|||
||sharehold|service|expense|price||||contract||||
|nt Co.,||||||||||||
||er|||||||term||||
|Ltd.||||||||||||
||A|||||||||||
|ALSTOM|subsidiary|||||||Settlemen||||
||||Project||||||||http://ww|
|Boiler|of the|Received||Market||||t as per||April. 29,||
||||service||－|43.77|1.41%||－||w.cninfo.c|
|Deutschla|ultimate|service||price||||contract||2014||
||||||||||||om.cn|
|nd GmbH|actual|||||||term||||
||controller|||||||||||
|ALSTOM||||||||||||
||Controllin|||Fall 10%||||Settlemen||||
|(China)|||||||||||http://ww|
||g|Payment||of PBOC||||t as per||April. 29,||
|Investme|||Interest||－|4,122.1|87.73%||－||w.cninfo.c|
||sharehold|of interest||benchmar||||contract||2014||
|nt Co.,|||||||||||om.cn|
||er|||k rate||||term||||
|Ltd.||||||||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Wuhan||||||||||||
||A|||||||||||
|Boiler||||||||||||
||subsidiary|||||||||||
|Group||||||||Settlemen||||
||of the|||||||||||
|Engineeri||Sale of|Sale of|Market||||t as per||||
||second||||－|218.79|0.44%||－|||
|ng||products|products|price||||contract||||
||largest|||||||||||
|Technolo||||||||term||||
||sharehold|||||||||||
|gy||||||||||||
||er|||||||||||
|Co.,Ltd||||||||||||
|Total||||--|--|37,676.90|--|--|--|--|--|
|Details of large amount of sales returns||||None.||||||||
|As for the estimation on the total amount||||||||||||
|of routine related party transactions to be||||||||||||
|||||1、Purchase of raw material: The actual amount is less than the estimated amount||||||||
|occurred in the report period by relevant||||||||||||
|||||2、Sale of boiler products: The actual amount is less than the estimated amount||||||||
|types, the actual performance in the report||||||||||||
|period (if any)||||||||||||
|Reason for significant difference between||||||||||||
|the transaction price and the market price||||None.||||||||
|(if applicable)||||||||||||

2. Related party transactions arising from acquisition and sale of assets
□Applicable√ Inapplicable
The Company had no related party transaction arising from acquisition or sale of assets in the report period. 3. Related party transactions arising from joint investments
□Applicable√ Inapplicable
The Company had no related party transaction arising from joint investment during the report period.
4. Significant credits and liabilities with related parties
√Applicable□ Inapplicable
Was there any non-operating credit or liability with any related party?
□ Yes√ No
The Companydidn’t have any non-operating credit or liability with any related party during the report period.
|||||||||
|-|-|-|-|-|-|-|-|
|Related party||||||Amount||
|||||Non-operating|Opening|incurred in|Closing|
|||Variety of||||||
|||||capital|balance|report|balance|
||Relationship|credit or|Reason|||||
|||||occupation or|(RMB Ten|period|(RMB Ten|
|||liability||||||
|||||not|thousand)|(RMB Ten|thousand)|
|||||||thousand)||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||
|-|-|-|-|-|-|-|-|
|Wuhan Boiler Group|A subsidiary of the|||||||
|Engineering|second largest|Receivables|Sale of product|No|485.5|379.41|864.91|
|Technology Co., LTD|shareholder|||||||
||A subsidiary of|||||||
|ALSTOM Power Inc|ultimate holding|Receivables|Sale of product|No|11,515.78|-2,546.03|8,969.75|
||company|||||||
||A subsidiary of|||||||
|Alstom Boiler||||||||
||ultimate holding|Receivables|Sale of product|No|12.96|0.9|13.86|
|Deutschland GmbH||||||||
||company|||||||
|ALSTOM Technical|A subsidiary of|||||||
||||Down payment|||||
|Services (Shanghai)|ultimate holding|Receivables||No|1,326|-1,326|0|
||||of material|||||
|Co., LTD|company|||||||
||A subsidiary of|||||||
|ALSTOM Power Inc.|ultimate holding|Receivables|Down payment|No|0|122.56|122.56|
||company|||||||
||second largest||The relocation|||||
|Wuhan Boiler Group||Receivables||No|6,103.05|0|6,103.05|
||shareholder||compensation|||||
||A subsidiary of the|||||||
|Wuhan Boiler Group|||Sales of|||||
||second largest|Receivables||No|24.06|0|24.06|
|Valve Co., LTD|||material|||||
||shareholder|||||||
||A subsidiary of the|||||||
|Wuhan Boiler Group||||||||
||second largest|Receivables|Labor service|No|1.02|0|1.02|
|Yuntong Co., LTD||||||||
||shareholder|||||||
||A subsidiary of|||||||
|ALSTOM Boiler||||||||
||ultimate holding|Receivables|Service|No|61.71|0|61.71|
|France||||||||
||company|||||||
||A subsidiary of|||||||
|ALSTOM||||||||
||ultimate holding|Receivables|IT service|No|0|18.15|18.15|
|(Switzerland) Ltd||||||||
||company|||||||
||A subsidiary of|||||||
|ALSTOM Boiler|||Sales of|||||
||ultimate holding|Receivables||No|38.84|0.01|38.85|
|Deutschland GmbH|||material|||||
||company|||||||
|ALSTOM (Wuhan)|A subsidiary of|||||||
|Engineering|ultimate holding|Receivables|Labor service|No|24.57|-20.95|3.62|
|&Technology Co., Ltd|company|||||||
|ALSTOM (Beijing)|A subsidiary of|||||||
|Engineering|ultimate holding|Receivables|Labor service|No|1.41|0|1.41|
|&Technology Co., Ltd|company|||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||
|-|-|-|-|-|-|-|-|
||A subsidiary of|||||||
||||Sales of|||||
|ALSTOM Power Inc.|ultimate holding|Receivables||No|3.62|0|3.62|
||||material|||||
||company|||||||
||A subsidiary of|||||||
||||Purchase of|||||
|ALSTOM s.r.o|ultimate holding|Payables||No|1.13|0.09|1.22|
||||material|||||
||company|||||||
||A subsidiary of|||||||
|ALSTOM||||||||
||ultimate holding|Payables|IT service|No|213.86|-124.05|89.81|
|(Switzerland) Ltd||||||||
||company|||||||
||A subsidiary of||Down payment|||||
|ALSTOM Boiler||||||||
||ultimate holding|Payables|received of|No|9,298.74|-3,174.45|6,124.29|
|Deutschland GmbH||||||||
||company||product|||||
||||Down payment|||||
||Second largest|||||||
|ALSTOM Estonia AS||Payables|received of|No|258.39|0.17|258.56|
||shareholder|||||||
||||product|||||
||A subsidiary of|||||||
|ALSTOM IS&T SAS|ultimate holding|Payables|IT service|No|439.42|-280.42|159|
||company|||||||
||A subsidiary of|||||||
|ALSTOM Power|||Purchase of|||||
||ultimate holding|Payables||No|94.97|1.32|96.29|
|Boiler GmbH|||material|||||
||company|||||||
||A subsidiary of|||||||
|ALSTOM Power|||Purchase of|||||
||ultimate holding|Payables||No|0.92|0.14|1.06|
|Energy|||material|||||
||company|||||||
||A subsidiary of|||||||
||||Purchase of|||||
|ALSTOM Power Inc|ultimate holding|Payables||No|44.37|4.51|48.88|
||||material|||||
||company|||||||
||A subsidiary of|||||||
||||Receipt of|||||
|ALSTOM Holdings|ultimate holding|Payables||No|2.1|-0.6|1.5|
||||service|||||
||company|||||||
||A subsidiary of||Down payment|||||
|ALSTOM Power Inc|ultimate holding|Payables|received of|No|59,330.69|-1,672.84|57,657.85|
||company||product|||||
||A subsidiary of||Down payment|||||
|ALSTOM Boiler||||||||
||ultimate holding|Payables|received of|No||648.49|648.49|
|France||||||||
||company||product|||||
||A subsidiary of|||||||
||||Receipt of|||||
|ALSTOM Power Ltd|ultimate holding|Payables||No|8.84|-0.04|8.8|
||||service|||||
||company|||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||
|-|-|-|-|-|-|-|-|
|ALSTOM (China)|Controlling|||||||
|||Payables|IT service||311.77|-174.69|137.08|
|investment co., LTD|shareholder|||No||||
|ALSTOM Technical|A subsidiary of|||||||
||||Purchase of|||||
|Services (Shanghai)|ultimate holding|Payables||No|3,196.65|-2,526.07|670.58|
||||material|||||
|Co., LTD|company|||||||
||A subsidiary of the|||||||
|Wuhan Boiler Group|||Purchase of|||||
||second largest|Payables||No|32.14|0|32.14|
|Valve Co., LTD|||boiler accessory|||||
||shareholder|||||||
|Wuhan Boiler Group|A subsidiary of the|||||||
||||Purchase of|||||
|Engineering|second largest|Payables||No|1,912.58|0|1,912.58|
||||boiler accessory|||||
|Technology Co., LTD|shareholder|||||||
||second largest||Receipt of|||||
|Wuhan Boiler Group||Payables|||97.41|0|97.41|
||shareholder||service|No||||
|ALSTOM (Wuhan)||||||||
||A subsidiary of the|||||||
|Engineering|||Receipt of|No||||
||second largest|Payables|||1.74|0|1.74|
|&Technology Co., Ltd.|||transport service|||||
||shareholder|||||||

5. Other significant related party transactions
□Applicable√ Inapplicable
The Company had no other significant related-party transaction during the report period.
VIII. Occupation of theCompany’s funds for non-operating purposes by the controlling shareholder and its related parties
□ Applicable√ Inapplicable
The controlling shareholder or its related parties did not occupy theCompany’s funds for non-operating purposes during the report period.
IX. Significant contracts and execution
1. Trusteeship, contract and lease
（（（（1））））Trusteeship
□Applicable√ Inapplicable
The Company did not make any entrustment in the report period.
(2) Contract
□Applicable√ Inapplicable
2014 Interim Report of Wuhan Boiler Company Limited The Company was not involved in any contracting in the report period.
(3) Lease
□Applicable√ Inapplicable
The Company was not involved in any leasing in the report period.
2. Guarantees provided by the Company
□Applicable√ Inapplicable
The Company did not provide any guarantee in the report period.
(1) Guarantees provided in violation of regulations
□ Applicable√ Inapplicable
The Company did not provide any guarantee in violation of regulations for any external party in the report period. 3. Other significant contracts
□Applicable√ Inapplicable
There was no other significant contract of the Company in the report period.
4. Other significant transactions
□Applicable√ Inapplicable
The Company was not involved in any other significant transaction in the report period.
X. Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the report period or such commitments carried down into the report period
√ Applicable□ Inapplicable
|||||||
|-|-|-|-|-|-|
||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||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||
|-|-|
|The commitment has been fulfilled in time||
||Yes|
|or not||

XI. Engagement and dismissal of CPA firm
Has the Interim Financial Report been audited or not?
□ Yes√ No
XII. Punishment and rectification
□Applicable√ Inapplicable
No punishment or rectification in the report period.
XIII. Delisting risk due to violation of laws or regulations
□ Applicable√ Inapplicable
No such risk in the report period.
XIV. Explanation on other significant events
√ 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.
2. 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.
3. In the report period, the net profit attributable to shareholders of the Company was 8,214,639.10, and the net assets attributable to shareholders of the Company were -1,355,276,203.03. If the Company fails to meet the requirements for listing resumption, the stock of the Company will be delisted. The Board of Directors hereby reminds investors of investment risks.
4. 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.”
XV. The confirmative opinion of all the Board Directors and Senior Management on recognition of 2014 Interim Report
According to Article 68 of the Securities Law, all the Board Director and Senior Management of the Company
hereby confirm that 2014 Interim Report of the Company is authentic, accurate and complete without any
misstatement, misleading statement or material omission.
2014 Interim Report of Wuhan Boiler Company Limited XVI. The opinion of the Board of Supervisors on 2014 Interim Report
After review, the Board of Supervisors is of the opinion that the procedure for the Board of Directors to prepare and approve 2014 Interim Report is in accordance with laws, regulations and rules of China Securities Regulatory Commission. The contents of 2014 Interim Report, truly, accurately and completely, reflect real situation of the Company and there are no misstatements, misleading statements or material omissions.
2014 Interim Report of Wuhan Boiler Company Limited Section VI Changes in Shares and Particulars about Shareholders I. Particulars about the changes in shares
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Increase/decrease (+, -)|||||After the change||
||||||Capitalizat|||||
||||Issuance||ion of|||||
|||Proportion||Bonus|||||Proportion|
||Amount||of new||public|Others|Subtotal|Amount||
|||(%)||shares|||||(%)|
||||shares||reserve|||||
||||||fund|||||
||172,000,0|||||||172,000,0||
|I. Non tradable shares||57.91%|||||||57.91%|
||00|||||||00||
||172,000,0|||||||172,000,0||
|1. Sponsors’ shares||57.91%|||||||57.91%|
||00|||||||00||
|Shares held by domestic|20,530,00|||||||20,530,00||
|||6.91%|||||||6.91%|
|corporations|0|||||||0||
|Shares held by foreign|151,470,0|||||||151,470,0||
|||51.00%|||||||51.00%|
|corporations|00|||||||00||
||125,000,0|||||||125,000,0||
|II. Tradable shares||42.09%|||||||42.09%|
||00|||||||00||
|2. Domestically listed|125,000,0|||||||125,000,0||
|||42.09%|||||||42.09%|
|foreign shares|00|||||||00||
||297,000,0|||||||297,000,0||
|III. Total shares||100.00%|||||||100.00%|
||00|||||||00||

Reason for the change in shares
□ Applicable√ Inapplicable
Approval of the change in shares
□ Applicable√ Inapplicable
Transfer of the change in shares
□ Applicable√ Inapplicable
Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company and other financial indexes over the last year and last period
□ Applicable√ Inapplicable
Other contents that the Company considered necessary or were required by the securities regulatory authorities to disclose
□ Applicable√ Inapplicable
Explanation on changes in total shares, shareholder structure, and the structure of assets and liabilities
□ Applicable√ Inapplicable
2014 Interim Report of Wuhan Boiler Company Limited II. Total number of shareholders and their shareholdings
Unit: share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||Total number of shareholders|||0|||
|Total number of shareholders|||||||||||
||||||with preferred shares who had||||||
|with common shares at the end||7,688|||||||||
||||||resumed their voting right at the||||||
|of the report period|||||||||||
||||||end of the report period (if any)||||||
|Shareholdings of shareholders holding more than 5% shares or top 10 shareholders|||||||||||
|||||||Increase /|||Pledged or frozen||
|||||Total shares||decrease|Number of|Number of|shares||
||Nature of||Shareholding||||||||
|Name of shareholder||||held at the||during the|non-tradable|tradable|||
||shareholder||percentage||||||Status of|Number|
|||||period-end||report|shares held|shares held|||
||||||||||shares|of shares|
|||||||period|||||
|ALSTOM (CHINA)INVESTMENT CO.,LTD|Domesticnon-state-ownedcorporation||51.00%|151,470,000||0|151,470,000|0|||
|WUHAN BOILERGROUP CO., LTD|State-ownedcorporation||6.91%|20,530,000||0|20,530,000|0|||
|WANG XIAO|Domesticnatural person||0.90%|2,672,800||0|0|2,672,800|||
|CHEN PENG|Domesticnatural person||0.79%|2,331,545||0|0|2,331,545|||
|HU ZHIHONG|Domesticnatural person||0.47%|1,390,397||0|0|1,390,397|||
|CHINA MERCHANTSSECURITIES (HK)CO., LTD.|State-ownedcorporation||0.46%|1,380,236||0|0|1,380,236|||
|CHEN CHUYUN|Domesticnatural person||0.46%|1,372,450||0|0|1,372,450|||
|HSBC BROKINGSECURITIES (ASIA)LIMITED-CLIENTSA/C|Foreigncorporation||0.40%|1,195,114||0|0|1,195,114|||
|ZHUANGCHANGXIONG|Domesticnatural person||0.35%|1,045,000||0|0|1,045,000|||
|SUN WEIWEI|Domesticnatural person||0.33%|966,567||0|0|966,567|||
|Strategic investor or corporation|||||||||||
|becoming a top ten shareholder due to|||Not applicable||||||||
|placing of new shares (if any)|||||||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||
|-|-|-|-|
||Alstom (China) Investment Co., Ltd. (the first principal shareholder of the Company)|||
||and Wuhan Boiler Group Co., Ltd. (the second principal shareholder of the Company)|||
||hold non-tradable shares of the Company. No affiliated relationship exists between|||
||Alstom (China) Investment Co., Ltd. (the first principal shareholder of the Company),|||
||Wuhan Boiler Group Co., Ltd. (the second principal shareholder of the Company) and|||
|Explanation on affiliated relationship or||||
||the other shareholders with tradable shares, and they are not persons acting in concert as|||
|persons acting in concert among the||||
||defined in the Administrative Rules on Information Disclosure about Changing of|||
|above-mentioned shareholders:||||
||Shareholding Status. The Company is not aware of whether there is any affiliated|||
||relationship among the top ten shareholders with tradable shares and whether there are|||
||persons acting in concert among 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.|||
|Shareholdings of top ten shareholders holding tradable shares||||
||Number of tradable shares|Type of shares||
|Name of shareholder||||
||held at the period-end|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 MERCHANTS SECURITIES(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 JUNANSECURITIES(HONGKONG) LIMITED|926,997|||
|||Domestically listed foreign shares|926,997|
|QIN HUI|909,286|Domestically listed foreign shares|909,286|
|Explanation on affiliated relationship or||||
||The top ten shareholders of the Company are public shareholders with tradable B shares.|||
|persons acting in concert among the top||||
||The Company is not aware of whether there is any affiliated relationship among the top|||
|ten shareholders with tradable shares and||||
||ten shareholders with tradable shares and whether there are persons acting in concert|||
|between the top ten shareholders with||||
||among them. The Company is not aware of whether there is any affiliated relationship|||
|tradable shares and the top ten||||
||among the top ten shareholders and the top ten shareholders with tradable share.|||
|shareholders||||
|Explanation on the top 10 shareholders||||
|participating in the margin trading|Not applicable|||
|business (if any)||||

Did any shareholder of the Company reach agreement of buy back trading in the report period?
□ Yes√ No
2014 Interim Report of Wuhan Boiler Company Limited No shareholder of the Company carried out any agreed buy-back in the report period.
III. Change in the controlling shareholder or the actual controller
Change of the controlling shareholder in the report period
□ Applicable√ Inapplicable
The controlling shareholder of the Company did not change in the report period.
Change of the actual controller in the report period
□ Applicable√ Inapplicable
The actual controller of the Company did not change in the report period.
IV. Shareholding increase plan proposed or implemented by any shareholder or its act-in-concert party during the report period
□ Applicable√ Inapplicable
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any shareholding increase plan during the report period.
2014 Interim Report of Wuhan Boiler Company Limited Section VII Preferred Shares
I. Issuance and listing of preferred shares in the report period
□ Applicable√ Inapplicable
II. Number of shareholders held preferred shares and their shareholdings
□ Applicable√ Inapplicable
III. Buy-back or conversion of preferred shares
1. Buy-back of preferred shares
□ Applicable√ Inapplicable
2. Conversion of preferred shares
□ Applicable√ Inapplicable
IV. Resumption and exercise of voting rights of preferred shares
□ Applicable√ Inapplicable
V. Accounting policies adopted for preferred shares and reasons
□ Applicable√ Inapplicable
2013 Interim Report of Wuhan Boiler Company Limited Section VIII Particulars about Directors, Supervisors
and Senior Management
I. Changes in shareholding of Directors, Supervisors and Senior Management
□ Applicable√ Inapplicable
Shareholding of theCompany’s Directors, Supervisors and Senior Management remained unchanged during the report period. For details, please refer to 2013 Annual Report.
II. Change of Directors, Supervisors and Senior Management
√ Applicable□ Inapplicable
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|Shen Weixing|Independent Director|Resignation|May 21, 2014|Personal career arrangement|
|Xiong Gang|Director|Resignation|May 21, 2014|Personal career arrangement|
|Anders Maltesen|Director|Resignation|May 21, 2014|Personal career arrangement|
|Li Jianghong|Independent Director|Elected|May 21, 2014|Elected by the Shareholders’ Meeting|
|Gao Yan|Director|Elected|May 21, 2014|Elected by the Shareholders’ Meeting|
|Pascal Alexander Radue|Director|Elected|May 21, 2014|Elected by the Shareholders’ Meeting|

2014 Interim Report of Wuhan Boiler Company Limited Section IX Financial Report
I.Auditor’s Report
Whether the semi-report is audited?
□ Yes√ No
The interim financial statements have not been audited.
II. Financial statements
Monetary unit of Notes to financial statements: RMB Yuan
1. Consolidated balance sheet
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current assets:|||
|Monetary funds|23,732,263.65|10,114,897.11|
|Deposit reservation for balance|||
|Outgoing call loans|||
|Trading financial assets|||
|Notes receivable|1,500,000.00|15,000,000.00|
|Accounts receivable|120,703,025.21|221,376,068.36|
|Prepayment|84,900,796.80|66,353,048.93|
|Insurance receivables|||
|Reinsurance receivables|||
|Provision of reinsurance contract|||
|reserve receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other receivables|61,507,568.39|58,418,447.82|
|Financial assets purchased under|||
|agreement to resell|||
|Inventories|152,124,948.75|134,413,065.46|
|Non-current assets due within 1-year|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Other current assets|||
|Total current assets|444,468,602.80|505,675,527.68|
|Non-current assets：|||
|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|689,823,354.40|705,316,090.85|
|Construction in progress|5,683,635.03|2,245,077.87|
|Engineering materials|||
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|71,325,416.35|73,865,912.61|
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|52,358,165.78|52,533,127.61|
|Other non-current assets||12,137.16|
|Total non-current assets|819,190,571.56|833,972,346.10|
|Total assets|1,263,659,174.36|1,339,647,873.78|
|Current liabilities:|||
|Short-term loans|1,550,000,000.00|1,629,200,000.00|
|Loans from central bank|||
|Deposits received and held for others|||
|Call loans received|||
|Held-for-trading financial liabilities|||
|Notes payable|66,546,750.00||
|Accounts payable|272,575,994.15|193,795,670.01|
|Advance from customers|671,248,752.51|803,079,341.99|
|Financial assets sold under|||
|agreements to repurchase|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Fees and commissions payable|||
|Payroll payable|40,212,110.61|47,064,533.78|
|Taxes payable|-25,792,187.91|-30,001,780.39|
|Interest payable|3,156,100.00|12,276,456.15|
|dividend payable|562,000.00|562,000.00|
|Other payables|34,382,022.95|41,329,411.60|
|Amount due to reinsurance|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Amount payable under security|||
|underwriting|||
|Non-current liabilities due within|||
|1-year|||
|Other current liabilities|||
|Total current liabilities:|2,612,891,542.31|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|5,285,185.30|5,051,752.88|
|Total non-current liabilities :|5,285,185.30|5,051,752.88|
|Total liabilities|2,618,176,727.61|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|-1,866,353,967.32|-1,874,568,606.42|
|Foreign exchange difference|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Total owners’ equity attributable to|||
||-1,355,276,203.03|-1,363,490,842.13|
|the Company|||
|Minority interests|758,649.78|781,329.89|
|Total owners’ (or shareholders’) equity|-1,354,517,553.25|-1,362,709,512.24|
|Total liabilities & owners’ (or|||
||1,263,659,174.36|1,339,647,873.78|
|shareholders’) equity|||

Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: 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|22,117,579.26|8,554,186.69|
|Trading financial assets|||
|Notes receivable|1,500,000.00|15,000,000.00|
|Accounts receivable|120,703,025.21|220,742,468.36|
|Prepayment|84,900,796.80|66,353,048.93|
|Interest receivable|||
|Dividend receivable|||
|Other receivables|61,924,861.50|58,771,441.37|
|Inventories|152,124,948.75|134,413,065.46|
|Non-current assets due within 1-year|||
|Other current assets|||
|Total current assets|443,271,211.52|503,834,210.81|
|Non-current assets：|||
|Available-for-sale financial assets|||
|Investment held to maturity|||
|Long-term receivables|||
|Long-term equity investment|24,984,500.00|24,984,500.00|
|Investment property|||
|Fixed assets|689,980,331.39|705,473,067.84|
|Construction in progress|5,683,635.03|2,245,077.87|
|Engineering materials|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Disposal of fixed assets|||
|Production biological assets|||
|Oil-gas assets|||
|Intangible assets|71,325,416.35|73,865,912.61|
|R&D expenses|||
|Goodwill|||
|Long-term deferred expenses|||
|Deferred income tax assets|52,358,165.78|52,533,127.61|
|Other non-current assets||12,137.16|
|Total non-current assets|844,332,048.55|859,113,823.09|
|Total assets|1,287,603,260.07|1,362,948,033.90|
|Current liabilities:|||
|Short-term loans|1,550,000,000.00|1,629,200,000.00|
|Trading financial liabilities|||
|Notes payable|66,546,750.00||
|Accounts payable|273,011,994.15|194,231,670.01|
|Advance from customers|671,248,752.51|803,079,341.99|
|Payroll payable|40,042,514.63|46,894,937.80|
|Taxes payable|-25,792,187.91|-30,001,780.39|
|Interest payable|3,156,100.00|12,276,456.15|
|dividend payable|||
|Other payables|72,259,681.38|79,014,270.02|
|Non-current liabilities due within|||
|1-year|||
|Other current liabilities|||
|Total current liabilities:|2,650,473,604.76|2,734,694,895.58|
|Non-current liabilities:|||
|Long-term loans|||
|Bonds payable|||
|Long-term payables|||
|Specific payables|||
|Provision for liabilities|||
|Deferred income tax liabilities|||
|Other non-current liabilities|5,285,185.30|5,051,752.88|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Total non-current liabilities :|5,285,185.30|5,051,752.88|
|Total liabilities|2,655,758,790.06|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|-1,879,428,190.94|-1,888,071,275.51|
|Foreign exchange difference|||
|Total owners’ (or shareholders’) equity|-1,368,155,529.99|-1,376,798,614.56|
|Total liabilities & owners’ (or|||
||1,287,603,260.07|1,362,948,033.90|
|shareholders’) equity|||

Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao 3. Consolidated income statement
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Total sales|496,898,159.52|462,281,106.75|
|Including: Sales|496,898,159.52|462,281,106.75|
|Interest income|||
|Premium income|||
|Handling charges and commission|||
|income|||
|II. Total cost of sales|487,717,342.59|495,921,774.26|
|Including: Cost of sales|432,828,651.37|449,540,053.90|
|Interest expenses|||
|Service charge and commission income|||
|Cash surrender value|||
|Claim expenses-net|||
|Provision for insurance contract|||
|reserves-net|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Insurance policy dividend paid|||
|Reinsurance expense|||
|Business taxes and surcharges|6,820.58||
|Distribution expenses|7,661,970.06|6,460,847.20|
|Administrative expenses|13,225,649.54|13,059,491.70|
|Financial costs|45,534,113.65|40,200,193.10|
|Impairment loss|-11,539,862.61|-13,338,811.64|
|Add: gain/(loss) from change in fair|||
||-1,159,562.10|-2,547,295.46|
|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)|8,021,254.83|-36,187,962.97|
|Add: non-business income|350,210.10|2,913,166.75|
|Less: non-business expense|4,544.11|68,734.21|
|Including: loss from non-current asset|||
|||67,734.21|
|disposal|||
|IV. Total profit (“-” means loss)|8,366,920.82|-33,343,530.43|
|Less: income tax expense|174,961.83|3,103,374.39|
|V. Net profit (“-” means loss)|8,191,958.99|-36,446,904.82|
|Including: net profit achieved by the|||
|merged parties before business mergers|||
|Attributable to owners of the Company|8,214,639.10|-36,438,887.02|
|Minority interest income|-22,680.11|-8,017.80|
|VI. Earnings per share|||
|(I) Basic earnings per share|0.03|-0.12|
|(II) Diluted earnings per share|0.03|-0.12|
|VII. Other comprehensive income|||
|VIII. Total comprehensive income|8,191,958.99|-36,446,904.82|
|Attributable to owners of the|||
||8,214,639.10|-36,438,887.02|
|Company|||
|Attributable to minority|||
||-22,680.11|-8,017.80|
|shareholders|||

2014 Interim Report of Wuhan Boiler Company Limited Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao 4. Income statement of the Company
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount this period|Amount last period|
|I. Total sales|496,898,159.52|462,281,106.75|
|Less: cost of sales|432,828,651.37|449,540,053.90|
|Business taxes and surcharges|6,820.58||
|Distribution expenses|7,661,970.06|6,460,847.20|
|Administrative expenses|13,159,097.36|13,052,776.89|
|Financial costs|45,536,863.38|40,202,887.55|
|Impairment loss|-11,927,185.74|-13,495,147.30|
|Add: gain/(loss) from change in fair|||
||-1,159,562.10|-2,547,295.46|
|value (“-” means loss)|||
|Gain/(loss) from investment (“-” means|||
|loss)|||
|Including: income from investment on|||
|associates and joint ventures|||
|II. Business profit (“-” means loss)|8,472,380.41|-36,027,606.95|
|Add: non-business income|350,210.10|2,913,166.75|
|Less: non-business expense|4,544.11|68,734.21|
|Including: loss from non-current asset|||
|||67,734.21|
|disposal|||
|III. Total profit (“-” means loss)|8,818,046.40|-33,183,174.41|
|Less: income tax expense|174,961.83|3,103,374.39|
|IV. Net profit (“-” means loss)|8,643,084.57|-36,286,548.80|
|V. Earnings per share|||
|(I) Basic earnings per share|0.03|-0.12|
|(II) Diluted earnings per share|0.03|-0.12|
|VI. Other comprehensive income|||
|VII. Total comprehensive income|8,643,084.57|-36,286,548.80|

 Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao
2014 Interim Report of Wuhan Boiler Company Limited 5. Consolidated cash flow statement
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount this period|Amount last period|
|1. Cash flows from operating activities|||
|Cash received from sales of goods|||
||402,383,146.61|81,525,868.41|
|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|25,436,725.95|48,045,125.30|
|Other cash received from operating|||
||172,429.67|1,280,000.00|
|activities|||
|Sub-total of cash inflow from|||
||427,992,302.23|130,850,993.71|
|operating activities|||
|Cash paid for goods and services|162,673,836.25|259,358,216.56|
|Net increase of loans and advances|||
|Net increase of deposit in central|||
|bank, banks and other financial|||
|institutions|||
|Cash paid for original contract|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|claim|||
|Cash paid for interest, fees and|||
|commissions|||
|Cash paid for policy dividend|||
|Cash paid to and for employees|86,196,003.79|86,455,366.68|
|Cash paid for all types of taxes|5,803,875.00|5,807,751.97|
|Other cash paid relating to|||
||22,008,462.91|28,427,664.15|
|operating activities|||
|Sub-total of cash outflows from|||
||276,682,177.95|380,048,999.36|
|operating activities|||
|Net cash flows from operating|||
||151,310,124.28|-249,198,005.65|
|activities|||
|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|55,663.20|519,600.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries and other operating units|||
|Other cash received relating to|||
||1,342,769.01|152,850.86|
|investing activities|||
|Sub-total of cash inflows of|||
||1,398,432.21|672,450.86|
|investing activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|3,156,939.97|1,795,500.78|
|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|||
||1,160,946.10|434,503.73|
|investing activities|||
|Sub-total of cash outflows of|||
||4,317,886.07|2,230,004.51|
|investing activities|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Net cash flow from investing|||
||-2,919,453.86|-1,557,553.65|
|activities|||
|3. Cash flows from financing activities|||
|Cash received from investment|||
|Including: cash received from|||
|minority shareholders of subsidiaries|||
|Cash received from borrowings|735,800,000.00|739,000,000.00|
|Cash received from bonds issuing|||
|Other cash received relating to|||
|financing activities|||
|Sub-total of cash inflows of|||
||735,800,000.00|739,000,000.00|
|financing activities|||
|Cash paid for repayment of|||
||815,000,000.00|563,600,000.00|
|borrowings|||
|Cash paid for dividends, profit|||
||56,107,976.66|41,594,100.00|
|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|||
||871,107,976.66|605,194,100.00|
|financing activities|||
|Net cash flow from financing|||
||-135,307,976.66|133,805,900.00|
|activities|||
|4. Effect of foreign exchange rate|||
||534,569.62|2,562,069.04|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||13,617,263.38|-114,387,590.26|
|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|||
||21,900,487.66|16,683,462.09|
|of this period|||

Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao 6. Cash flows statement of the Company
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount this period|Amount last period|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|1. Cash flows from operating activities|||
|Cash received from sales of goods|||
||402,331,645.13|81,505,868.41|
|or rending of services|||
|Tax returned|25,436,725.95|48,045,125.30|
|Other cash received from operating|||
||172,429.67|1,280,000.00|
|activities|||
|Sub-total of cash inflow from|||
||427,940,800.75|130,830,993.71|
|operating activities|||
|Cash paid for goods and services|162,673,836.25|259,358,216.56|
|Cash paid to and for employees|86,196,003.79|86,455,366.68|
|Cash paid for all types of taxes|5,803,875.00|5,807,751.97|
|Other cash paid relating to|||
||22,007,971.67|28,427,664.15|
|operating activities|||
|Sub-total of cash outflows from|||
||276,681,686.71|380,048,999.36|
|operating activities|||
|Net cash flows from operating|||
||151,259,114.04|-249,218,005.65|
|activities|||
|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|55,663.20|519,600.00|
|long-term assets|||
|Net cash received from disposal of|||
|subsidiaries and other operating units|||
|Other cash received relating to|||
||1,339,805.28|149,852.41|
|investing activities|||
|Sub-total of cash inflows of|||
||1,395,468.48|669,452.41|
|investing activities|||
|Cash paid for acquisition of fixed|||
|assets, intangible assets and other|3,156,939.97|1,795,500.78|
|long-term assets|||
|Cash paid for acquisition of|||
|investments|||
|Net cash paid for acquisition of|||
|subsidiaries and other operating units|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Other cash paid relating to|||
||1,160,946.10|434,199.73|
|investing activities|||
|Sub-total of cash outflows of|||
||4,317,886.07|2,229,700.51|
|investing activities|||
|Net cash flow from investing|||
||-2,922,417.59|-1,560,248.10|
|activities|||
|3. Cash flows from financing activities|||
|Cash received from investment|||
|Cash received from borrowings|735,800,000.00|739,000,000.00|
|Cash received from issuing bonds|||
|Other cash received relating to|||
|financing activities|||
|Sub-total of cash inflows of|||
||735,800,000.00|739,000,000.00|
|financing activities|||
|Cash paid for repayment of|||
||815,000,000.00|563,600,000.00|
|borrowings|||
|Cash paid for dividends, profit|||
||56,107,976.66|41,594,100.00|
|distribution or interest|||
|Other cash paid relating to|||
|financing activities|||
|Sub-total of cash outflows of|||
||871,107,976.66|605,194,100.00|
|financing activities|||
|Net cash flow from financing|||
||-135,307,976.66|133,805,900.00|
|activities|||
|4. Effect of foreign exchange rate|||
||534,569.62|2,562,069.04|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||13,563,289.41|-114,410,284.71|
|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|||
||20,285,803.27|15,125,771.63|
|of this period|||

Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao 7. Consolidated statement of changes inowners’ equity
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
2014 Interim Report of Wuhan Boiler Company Limited
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount in this period||||||||||
||Owners’ equity attributable to the Company|||||||||Total|
|||||||||||owners’|
||||||||||Minority||
|||||||||||equity|
||||||||||interests||
|||||||||||Paid-in|
||||||||||Less:||
||Paid-in|||Paid-in|||Paid-in|||capital|
|Item|||||||||||
||||Less:|||Less:|||Treasury||
||capital|Capital||capital|Capital||capital|Capital||(share|
||||Treasur|||Treasur|||stock||
||(share|reserve||(share|reserve||(share|reserve||capital)|
||||y stock|||y stock|||Less:||
||capital)|||capital)|||capital)|||Paid-in|
||||||||||Treasury||
|||||||||||capital|
||||||||||stock||
|||||||||||(share|
|||||||||||capital)|
||||||||-1,874,5||||
||297,000|174,659,|||39,418,||||781,329.8|-1,362,709,|
|I. Balance at the end of 2013|||||||68,606.4||||
||,000.00|407.46|||356.83||||9|512.24|
||||||||2||||
|Plus: change in accounting|||||||||||
|policies|||||||||||
|Correction of errors in|||||||||||
|previous periods|||||||||||
|Others|||||||||||
||||||||-1,874,5||||
|II. Balance at the beginning of|297,000|174,659,|||39,418,||||781,329.8|-1,362,709,|
||||||||68,606.4||||
|this year|,000.00|407.46|||356.83||||9|512.24|
||||||||2||||
|III. Increase/ decrease during|||||||8,214,63||-22,680.1|8,191,958.|
|this report period (“-”for loss)|||||||9.10||1|99|
||||||||8,214,63||-22,680.1|8,191,958.|
|(I) Net profit|||||||||||
||||||||9.10||1|99|
|(II) Other comprehensive|||||||||||
|incomes|||||||||||
||||||||8,214,63||-22,680.1|8,191,958.|
|Subtotal of (I) and (II)|||||||||||
||||||||9.10||1|99|
|(III) Contributions and|||||||||||
|decrease of capital by owners|||||||||||
|1. Contributions by owners|||||||||||
|2. Amount paid by stock|||||||||||
|and included in owners’ equity|||||||||||
|3. Others|||||||||||
|(IV) Profit distribution|||||||||||
|1. Surplus reserve accrued|||||||||||

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|2. General risk provision|||||||
|accrued|||||||
|3. Distribution to owners|||||||
|(or shareholders)|||||||
|4. Others|||||||
|(V) Transfer within owners'|||||||
|equity|||||||
|1. Capital reserve|||||||
|transferred to capital (or share|||||||
|capital)|||||||
|2. Surplus reserve|||||||
|transferred to capital (or share|||||||
|capital)|||||||
|3. Surplus reserve offsetting|||||||
|losses|||||||
|4. Others|||||||
|(Ⅵ) Specific reserve|||||||
|1. Withdrawn in this|||||||
|period|||||||
|2. Used in this period|||||||
|(VII) Others|||||||
|||||-1,866,3||-1,354,517,553.25|
|IV. Balance at the end of this|297,000|174,659,|39,418,||758,649.7||
|||||53,967.3|||
|period|,000.00|407.46|356.83||8||
|||||2|||

Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount last year||||||||||
||Owners’ equity attributable to the Company|||||||||Total|
||||||||||Minority||
|||||||||||owners’|
||||||||||interests||
|||||||||||equity|
||||||||||Less:||
|||||||||||Paid-in|
||||||||||Treasury||
|||||||||||capital|
||Paid-in|||Paid-in|||Paid-in||stock||
|Item|||||||||||
||||Less:|||Less:||||(share|
||capital|Capital||capital|Capital||capital|Capital|Less:||
||||Treasur|||Treasur||||capital)|
||(share|reserve||(share|reserve||(share|reserve|Treasury||
||||y stock|||y stock||||Paid-in|
||capital)|||capital)|||capital)||stock||
|||||||||||capital|
||||||||||Less:||
|||||||||||(share|
||||||||||Treasury||
|||||||||||capital)|
||||||||||stock||
|||||||||||Paid-in|

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|||||||capital|
|||||||(share|
|||||||capital)|
|||||-1,754,2|||
||297,000|174,659,|39,418,||1,710,551|-1,241,508,|
|I. Balance at the end of 2012||||97,302.2|||
||,000.00|407.46|356.83||.22|986.75|
|||||6|||
|Plus: retrospective|||||||
|adjustment due to business|||||||
|combinations under the same|||||||
|control|||||||
|Plus: change in accounting|||||||
|policies|||||||
|Correction of errors in|||||||
|previous periods|||||||
|Others|||||||
|||||-1,754,2|||
|II. Balance at the beginning of|297,000|174,659,|39,418,||1,710,551|-1,241,508,|
|||||97,302.2|||
|this year|,000.00|407.46|356.83||.22|986.75|
|||||6|||
|III. Increase/ decrease during||||-120,27|-929,221.|-121,200,5|
|this report period (“-”for loss)||||1,304.16|33|25.49|
|||||-120,27|-929,221.|-121,200,5|
|(I) Net profit|||||||
|||||1,304.16|33|25.49|
|(II) Other comprehensive|||||||
|incomes|||||||
|||||-120,27|-929,221.|-121,200,5|
|Subtotal of (I) and (II)|||||||
|||||1,304.16|33|25.49|
|(III) Contributions and|||||||
|decrease of capital by owners|||||||
|1. Contributions by owners|||||||
|2. Amount paid by stock|||||||
|and included in owners’ equity|||||||
|3. Others|||||||
|(IV) Profit distribution|||||||
|1. Surplus reserve accrued|||||||
|2. General risk provision|||||||
|accrued|||||||
|3. Distribution to owners|||||||
|(or shareholders)|||||||
|4. Others|||||||

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|(V) Transfer within owners'|||||||
|equity|||||||
|1. Capital reserve|||||||
|transferred to capital (or share|||||||
|capital)|||||||
|2. Surplus reserve|||||||
|transferred to capital (or share|||||||
|capital)|||||||
|3. Surplus reserve offsetting|||||||
|losses|||||||
|4. Others|||||||
|(Ⅵ) Specific reserve|||||||
|1. Withdrawn in this|||||||
|period|||||||
|2. Used in this period|||||||
|(VII) Others|||||||
|||||-1,874,5|||
||297,000|174,659,|39,418,||781,329.8|-1,362,709,|
|IV. Balance at the end of 2013||||68,606.4|||
||,000.00|407.46|356.83||9|512.24|
|||||2|||

Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao 8. Statement of changes inowners’ equity of the Company
Prepared by Wuhan Boiler Company Limited
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount in this periodTotal Totalowners’ owners’Minority Minority Minorityequity equityinterests interests interestsOwners’ Paid-in Owners’ Paid-in Owners’Less: Less: Less:equity capital equity capital equityTreasury Treasury Treasuryattributable (share attributable (share attributablestock stock stockto the capital) to the capital) to theLess: Less: Less:Company Paid-in Company Paid-in CompanyTreasury Treasury Treasurycapital capitalstock stock stock(share (sharecapital) capital)||||||||
||||Total|||Totalowners’equity|||
||||owners’||||||
|||Minority|||Minority|||Minority|
||||equity||||||
|||interests|||interests|||interests|
||||Paid-in|Owners’||Paid-in|Owners’||
|||Less:|||Less:|||Less:|
||||capital|equity||capital|equity||
|Item|||||||||
|||Treasury|||Treasury|||Treasury|
||||(share|attributable||(share|attributable||
|||stock|||stock|||stock|
||||capital)|to the||capital)|to the||
|||Less:|||Less:|||Less:|
||||Paid-in|Company||Paid-in|Company||
|||Treasury|||Treasury|||Treasury|
||||capital|||capital(sharecapital)|||
|||stock|||stock|||stock|
||||(share||||||
||||capital)||||||
||297,000,000.00|174,854,30|||39,418,356||-1,888,071,|-1,376,798,|
|I. Balance at the end of 2013|||||||||
|||4.12|||.83||275.51|614.56|

2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
|Plus: change in accounting||||||
|policies||||||
|Correction of errors in||||||
|previous periods||||||
|Others||||||
|II. Balance at the beginning of|297,000,00|174,854,30|39,418,356|-1,888,071,|-1,376,798,|
|this year|0.00|4.12|.83|275.51|614.56|
|III. Increase/ decrease during this||||8,643,084.|8,643,084.|
|report period (“-”for loss)||||57|57|
|||||8,643,084.|8,643,084.|
|(I) Net profit||||||
|||||57|57|
|(II) Other comprehensive||||||
|incomes||||||
|||||8,643,084.|8,643,084.|
|Subtotal of (I) and (II)||||||
|||||57|57|
|(III) Contributions and||||||
|decrease of capital by owners||||||
|1. Contributions by owners||||||
|2. Amount paid by stock and||||||
|included in owners’ equity||||||
|3. Others||||||
|(IV) Profit distribution||||||
|1. Surplus reserve accrued||||||
|2. General risk provision||||||
|accrued||||||
|3. Distribution to owners (or||||||
|shareholders)||||||
|4. Others||||||
|(V) Transfer within owners'||||||
|equity||||||
|1. Capital reserve transferred||||||
|to capital (or share capital)||||||
|2. Surplus reserve transferred||||||
|to capital (or share capital)||||||
|3. Surplus reserve offsetting||||||
|losses||||||
|4. Others||||||
|(Ⅵ) Specific reserve||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
|1. Withdrawn in this period||||||
|2. Used in this period||||||
|(VII) Others||||||
||297,000,00|174,854,30|39,418,356|-1,879,428,|-1,368,155,529.99|
|IV. Balance at the period-end||||||
||0.00|4.12|.83|190.94||

 Amount last period
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Amount last period||||||
||Owners’||Owners’|Owners’|Owners’||
||equity||equity|equity|equity||
|Item|||||||
||attributable||attributable|attributable|attributable||
||to the||to the|to the|to the||
||Company||Company|Company|Company||
||297,000,00|174,854,30||39,418,356|-1,766,885,|-1,255,613,|
|I. Balance at the end of 2012|||||||
||0.00|4.12||.83|811.92|150.97|
|Plus: change in accounting|||||||
|policies|||||||
|Correction of errors in|||||||
|previous periods|||||||
|Others|||||||
|II. Balance at the beginning of|297,000,00|174,854,30||39,418,356|-1,766,885,|-1,255,613,|
|this year|0.00|4.12||.83|811.92|150.97|
|III. Increase/ decrease during this|||||-121,185,4|-121,185,4|
|report period (“-”for loss)|||||63.59|63.59|
||||||-121,185,4|-121,185,4|
|(I) Net profit|||||||
||||||63.59|63.59|
|(II) Other comprehensive|||||||
|incomes|||||||
||||||-121,185,4|-121,185,4|
|Subtotal of (I) and (II)|||||||
||||||63.59|63.59|
|(III) Contributions and|||||||
|decrease of capital by owners|||||||
|1. Contributions by owners|||||||
|2. Amount paid by stock and|||||||
|included in owners’ equity|||||||
|3. Others|||||||
|(IV) Profit distribution|||||||
|1. Surplus reserve accrued|||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
|2. General risk provision||||||
|accrued||||||
|3. Distribution to owners (or||||||
|shareholders)||||||
|4. Others||||||
|(V) Transfer within owners'||||||
|equity||||||
|1. Capital reserve transferred||||||
|to capital (or share capital)||||||
|2. Surplus reserve transferred||||||
|to capital (or share capital)||||||
|3. Surplus reserve offsetting||||||
|losses||||||
|4. Others||||||
|(Ⅵ) Specific reserve||||||
|1. Withdrawn in this period||||||
|2. Used in this period||||||
|(VII) Others||||||
||297,000,00|174,854,30|39,418,356|-1,888,071,|-1,376,798,|
|IV. Balance at the end of 2013||||||
||0.00|4.12|.83|275.51|614.56|

 Legal representative: YEUNG Kwok Wei Richard CFO: CHIN Wee Hua Accounting manager: LI Yihao III. Company profile
Wuhan Boiler Co., Ltd. (the‘Company’) was established by Wuhan Boiler (Group) Co., Ltd. (the‘Group’) with the exclusive operating assets of boiler manufacturing in September 1997 and listed in B share market in April 1998. When it was first established, the total number of issued shares outstanding of the Company was 297,000,000. The‘Group’ held 172,000,000 shares accounting for57.91% of total issued equity, and the public shareholders (Domestically listed share in foreign currency) held 125,000,000 shares accounting for42.09% of total shareholding. The Company's B-shares listed in the Shenzhen Stock Exchange. The Company obtained the corporate business license documented as Qi Gu Er Zong Fu Zi No.002591 on November 16, 1998. The Group transferred its51% shareholding of Wuhan Boiler Co., Ltd to Alstom (China) Investment Co., Ltd in 2007 with approval of State-owned Assets Supervision and Administration Commission of the State Council. The share transfer procedures were completed in August 2007. As at December 31, 2013, Alstom (China) Investment Co., Ltd., Wuhan Boiler (Group) Co., Ltd. and public shareholders held 151,470,000 shares, 20,530,000 shares and 125,000,000 shares respectively, accounting for51%,6.91% and42.09% of total shareholding respectively. The register capital of the Company is 297,000,000.00.
No.1 LiuFangYuan Road, Donghu New Technology Development District, Wuhan, Hubei.
Business scope of the Company is researching, designing, developing and manufacturing and selling of types I, II,
III pressure vessels, power station boilers, special boilers, auxiliary boilers, and desulfurization equipment and so
2014 Interim Report of Wuhan Boiler Company Limited on. The Company is a big boiler manufacturing enterprise and the main operating activities are in China. The major customer markets of the Company are various power plants and power stations. Certain products are auxiliary equipments and pressure vessels target refineries and chemical enterprises. The Company produces three categories products: power station boilers, special boilers and other products. Power station boils are used in power stations. Special boilers are designed and manufactured according tocustomers’ profit and loss balance combustion technology or specific requirement of fuel, which is energy saving and environment friendly. The special boilers include alkali recovery boilers, circulating fluidized bed boilers, bagasse-fired boilers, the stand vertical-burning boilers, liquid slag-off boilers, and waste heat boilers and so on.
The parent company of the Company is Alstom (China) Investment Co., Ltd. The parent company of Alstom (China) Investment Co., Ltd.is Alstom Holdings.
IV. Main accounting policies and estimates as well as correction of previous accounting errors 1. Basis for preparation of financial statements
The consolidated financial statements of the Company and its subsidiaries are prepared based on assumption of theCompany’s continuing operations, according to transactions and events actually occurred, and based on the following preparation basis, important accounting policies and accounting estimates.
2. Statement of compliance with corporate accounting standards
The financial report and statements are prepared with compliance to the requirement of the Enterprise Accounting Standard. They reflect the financial position as of 30.06.13, and business performance and cash flow situation in the first half of year 2013 of the Company frankly and completely.
3. Fiscal year
The fiscal year of the Company is the solar calendar year, which is from January 1 to December 31.
4. Recording currency
Recording currency is RMB.
5. Accounting method of business combination under the same control and not under the same control (1) Business combination under the same control
Business combination under the common control refers to that parties involved in the merger are subject to the ultimate control of the same party or same multi parties before& after the merger and such control is not temporary. Assets and liabilities acquired by merging parties in a business combination are measured at the book value of the combined parties at the merge date. Upon any difference between book value of net assets obtained by merging parties and book value the merging price they pay (or the aggregate nominal amount of issued shares), it should adjust the capital surplus (share premium), and if capital surplus (share premium)isn’t sufficient to dilute, then adjust retained earnings. Merger date refers the date that the merging parties actually gain the control of the combined parties.
(2) Business combination not under the same control
Business combination not under the common control refers to that parties involved in the merger are not subject to the ultimate control of the same party or same multi parties before& after the merger.
Costs of the combination paid by the purchasers are the sum of assets paid to obtain the control of the combined parties, liabilities incurred or assumed, the fair value of equity securities issued at the purchase date, and various direct costs occurred in the business combination. The difference between the fair value of its assets paid and the
2014 Interim Report of Wuhan Boiler Company Limited book value thereof is accrued to current profit or loss. Purchase date refers to the date that the purchasers actually gain the control of the purchased parties.
The purchasers allocate the costs of combination on the purchase date, and confirm the fair values of identifiable assets, liabilities and contingent liabilities of the purchased parties they obtain. The difference that costs of combination exceed the fair value of identifiable assets of the purchased parties obtained in the merger will be recognized as goodwill; the difference that costs of combination are less than the fair value of identifiable assets of the purchased parties obtained in the merger will be accrued in current profit or loss.
6. Preparation methods for consolidated financial statements
(1) Preparation methods for consolidated financial statements
The combined scope of consolidated financial statements includes the Company and its subsidiaries.Subsidiary’s operating results and financial position are included in the consolidated financial statements from the controlled date until the end date.
As for subsidiary obtained by the Company through business combination under the common control, in the preparation of current consolidated financial statements, it will be deemed that the combined subsidiary is incorporated into the consolidation scope when the ultimate controlling party of the Company implements the control right, and the beginning balance of consolidated financial statements and comparative statements will be adjusted accordantly.
As for subsidiary obtained by the Company through business combination not under the common control, in the preparation of current consolidated financial statements, the financial statements of such subsidiary will be adjusted based on the fair value of the identifiable assets and liabilities determined at the purchase date, and since the purchase date, the consolidated subsidiary will be incorporated into the consolidation scope.
If the accounting period or accounting policy adopted by subsidiary and parent company are not consistent, a necessary adjustment shall be made to the financial statements of subsidiary in accordance with the accounting period or accounting policy of parent company when the consolidated financial statements are prepared. All major transactions, balances and unrealized profit or loss among enterprises within the consolidation scope will be offset in the preparation of consolidated financial statements.
Interests and income attributable to minority shareholders of subsidiary will be listed separately respectively under theShareholders’ Equity in the Consolidated Balance Sheet and under the Net Profit in the Consolidated Income Statement.
If the losses attributable to the minority shareholders exceed the share of minority shareholders enjoyed in the ownership interest of the subsidiary, in addition to the part that the minority shareholders have the obligation and the ability to take, the balance will offset against theshareholders’ equity of parent company. If the subsidiary makes a profit subsequently, before making up the loss attributed to relevant minority shareholders beard byshareholders’ equity of parent company, all the profits are attributable toshareholders’ equity of parent company. (2) As for the event about purchasing and then selling (or selling and then purchasing) equities of the same subsidiary, the Company shall disclose relevant accounting treatment methods
Inapplicable
7. Recognition standards for cash and cash equivalents
In preparing the cash flow statement, the cash equivalents of the Company include the investments with short period (it usually expires within three months from the purchase date), characteristics of high liquidity, easy conversion to certain amount of cash and little risk of value change.
8. Foreign currency business and translations of financial statements in foreign currencies
2014 Interim Report of Wuhan Boiler Company Limited (1) Foreign currency business
Foreign currency transactions are converted into RMB for recording purpose at the exchange rate on the first day of the period when the transaction occurs.
Adjustments are made to foreign currency accounts in accordance with the exchange rate prevailing on the balance sheet date. Value of non-currency item accrued at fair value by foreign currency is adjusted in accordance with the exchange rate prevailing on fair value confirm date. Conversion differences arising from those specific borrowings are to be capitalized as part of the cost of the construction in progress in the period before the fixed assets being acquired and constructed has not yet reached working condition for its intended use. Conversion differences arising from other accounts are charged to financial expenses.
(2) Translations of financial statements in foreign currencies
The Company translates the financial statements of its foreign operation in accordance with the following provisions: a) the asset and liability items in the balance sheets shall be translated at a spot exchange rate ruling at the balance sheet date. Among the owner's equity items, except the ones as‘retainedearnings’, others shall be translated at the spot exchange rate ruling at the time when they occurred; b) The income and expense items in the income statements shall be translated with approximate exchange rate of the spot rate on the transaction occurring date. The foreign exchange difference arisen from the translation of foreign currency financial statements shall be presented separately under the owner's equity in the balance sheet. The translation of comparative financial statements shall be subject to the aforesaid provisions.
9. Financial instrument
Based on the purposes of obtaining the financial assets and assuming the liabilities, theCompany’s management classifies the financial instruments into: the financial assets or financial liabilities that are calculated in the fair values and whose changes are accrued to current profit or loss, including trading financial assets or financial liabilities, and those directly designated to be calculated in the fair values and whose changes are accrued to current profit or loss; the held-to-maturity investments; loans and receivables; available-for-sale financial assets; and other financial liabilities, etc.
(1) Category of financial instrument
Financial instrument includes financial assets and financial liabilities.
(2) Recognition basis and measurement method of financial instrument
A. The financial assets (or financial liabilities) that are calculated in the fair values and whose changes are accrued to current profit or loss
The fair values (excluding cash dividends that have been declared but have not been distributed and bond interests that have exceeded the expiry dates but have not been drawn) are deemed as the initial confirmation amount on acquisition. Relevant transaction expenses are charged to profit or loss of the period.
The interests or cash dividends obtained during the holding period are recognized as investment income. Change of fair values is charged to profit or loss of the period at the year end.
Difference between the fair value and initial book value is recognized as investment income upon disposal. Adjustment is made to gain or loss from changes in fair values.
B. Held-to-maturity investments
The sum of fair values (excluding bond interests that have exceeded the expiry dates and have not been drawn) and relevant transaction expenses are deemed as the initial confirmation amount.
During the holding period, interest income is recognized as investment income based on the amortized cost and actual interest rate (if the difference between the actual interest rate and the nominal interest rate is tiny, calculation is based on the nominal interest rate). The actual interest rates are determined upon acquisition and
2014 Interim Report of Wuhan Boiler Company Limited remain unchanged during the expected holding period or a shorter period applicable.
Difference between the amount received and book value of the investment is charged to investment income upon disposal.
If the Company sells or re-classifies a large amount of held to maturity investments prior to maturity (large amount refers to the total amount relative to such investments prior to the sale or re-classification), then the Company will re-classify the rest of such type of investment as financial assets available for sale, and the Company will not re-classify any financial assets as held to maturity in the current accounting period or following two full fiscal years, but the following is excepted: the sale date or re-classification date is near to the maturity or redemption date of such investment (such as three months before maturity), and the market interest rate changes have no significant effect on the fair value of the investment; all the initial principal of such investment is nearly recovered according to the periodic payments or early repayment under the contract, resell or re-classify the remaining; sale or re-classification is caused by independent matters the Companycan’t control, not expected to recur and difficult to predict reasonably.
C. Receivables and loans
Receivables primarily are the amount receivable formed from sales of goods or service provision of the Company and other claims, which initial recognition amount, will be confirmed according to the contract or agreement price receivable from the purchasers. For recovery or disposal of loans and receivables, the difference between the price obtained and the book value of loans and receivables is charged to current profit or loss.
Loans are mainly loans issued by financial companies. For loans issued by financial institutions according to the current market conditions, the initial recognition amount will be confirmed according to the principal of loans issued and related transaction expenses. Interest income recognized during the holding period of the loan will be calculated at the actual rate. Real interest rate will be determined upon obtaining loans, and will be unchanged within the expected duration of the loan or applicable shorter period. If the difference between real interest rate and the contract interest rate is small, then the income will be calculated at the contract interest rate.
D. Available-for-sale financial assets
The sum of fair values (excluding cash dividends that have been declared but have not been distributed and bond interests that have exceeded the expiry dates but have not been drawn) and relevant transaction expenses is deemed as the initial confirmation amount.
The interests and cash dividends generated during the holding period are accrued to investment income. At year end, available-for-sale financial assets are calculated in the fair values and the changes in fair values are accrued to the capital reserves (other capital reserves).
Difference between the amount received and the book value of the financial assets is recognized as investment gain or loss upon disposal. At the same time, the accumulated changes in fair value previously recognized in theowners’ equity are transferred into investment gain or loss.
(3) Recognition basis and measurement method of financial assets transfer
The Company should terminate recognizing these financial assets when the transform occurs and almost all risk and return of the financial assets ownership have been transferred to the transferee; The Company should not terminate recognizing this financial assets if almost all risk and return of the financial assets ownership have been remained. Essence is more important than form when judging whether the transform meets the requirements of the financial assets termination recognition conditions mentioned above. The Company divides the transform of financial assets into entire transfer and partial transfer.
A. If the transfer of an entire financial asset satisfies the conditions for stopping recognition; the difference between the amounts of the following two items shall be recorded in current profit or loss:
①The book value of the transferred financial asset;
②The sum of consideration received from the transfer, and the accumulative amount of the changes in the fair values originally recorded in theowners’ equities (in the case that the financial asset involved in the transfer is an available-for-sale financial asset).
B. For partial transfers of financial assets that meet the recognition conditions of termination in recognition, the book value of the whole financial assets are spitted into the derecognized portion and the derecognized portion
2014 Interim Report of Wuhan Boiler Company Limited according to their respective relative fair values (under this situation, the retained service assets are deemed as a part of the exterminated financial assets), and the difference between the following two items shall be recorded in the current profit or loss:
①Book value of the derecognized portion;
②The sum of the consideration of the derecognized portion and the accumulated changes in fair value previously recognized in theowners’ equity related to the derecognized portion (in the case that the assets transferred are available-for-sale financial assets).
For transfers of financial assets that do not meet the conditions of termination in recognition, the financial assets remain recognition and the consideration received is recognized as financial liabilities.
(4) Derecognized condition of financial liabilities
If the existing obligations of financial liabilities have been discharged in whole or in part, then the Company will derecognize such financial liability or part thereof.
If all or part of the financial liabilities is derecognized, the difference between the book value of the derecognized financial liabilities and payment will be charged into current profit or loss.
(5) Recognition method of the fair value of financial assets and liabilities
If there is an active market for the financial instrument, the fair value is quoted prices in the active market. If the market for a financial instrument is not active, the Company establishes fair value by using a valuation technique.
(6) Withdrawal of impairment provision of financial assets (excluding accounts receivable)
A. Impairment of available-for-sale financial assets:
If at the year end the fair values of the available-for-sale financial assets decline significantly, or the trend of the decline is expected to be non-temporary after consideration of all relevant factors, the assets are deemed impaired and impairment loss is recognized together with the amount transferred from the accumulated decreases in fair values previously recognized in theowners’ equity.
B. Impairment of held-to-maturity financial assets and loans:
For held-to-maturity investments and loans, if there is objective evidence on the incidence of impairment, then the impairment loss will be calculated and recognized according to the difference between the book value and the present value of estimated future cash flows.
(7) As for event about reclassifying the undue held-to-maturity investment into available-for-sale financial assets, the Company shall state the basis of changes in holding purpose or ability
Inapplicable
10. Recognition criteria and withdrawal methods for bad debts provision of accounts receivable
Receivables (including accounts receivable and other receivables etc) are recognized at contract or agreement price. Receivables which are irrecoverable due to i)debtor’s bankruptcy or liquidation; ii) death of debtor which resulted in insolvency; iii) long overdue, shall be classified as bad debt loss after going through approval procedures. In case the Company transfers or mortgages or discounts receivables to financial institutes like bank, according to the terms in relevant agreements when debtors cannot pay back the amount due and if the Company has the obligation to pay back the financial institutes, this receivables should be treated as mortgage loan; if the Company has no obligation to pay back the financial institutes, this receivables should be treated as transference and recognize the loss and gain arising from the transference. When the receivables are recovered, the difference between the amount recovered and book value of receivables is charged in the current profit and loss.
2014 Interim Report of Wuhan Boiler Company Limited (1) Bad debt provision for individually significant accounts receivable
|||
|-|-|
|Judgment basis or monetary standards of provision for bad|Top 5 of account receivables at year end|
|debts of the individually significant accounts receivable||
||The impairment test is carried on individually for|
||each individually significant receivable. If there are|
||substantive evidences indicated that a receivable has|
|Method of individual provision for bad debts of the|been impaired, it should make a provision for bad|
|individually significant account receivable|debts. If a receivable is found not to be individually|
||impaired, it should be included in a group of similar|
||credit risk characteristics receivables and make a|
||collective assessment of impairment.|

(2) Accounts receivable for which bad debt provisions are made on the group basis
||||
|-|-|-|
||Withdrawal method of||
|Name of group|bad debt provision on|Recognition basis of group|
||the group basis||
|||Besides the receivables which are individually|
|||impaired, the Company determines measurement of bad|
|||debt provision for groups of receivables on the basis of|
|Group 1|Aging analysis method|analyzing actual situation, and assessing the same or|
|||similar actual impairment rate of groups of receivables|
|||with similar credit risk characteristics, which divided by|
|||aging analysis in previous periods|
|||Receivables with confirmed letter credit or guarantee|
|||from the bank and provision for sales tax which is to be|
|Group 2|No bad debt provision||
|||paid as stipulated in contract are not classified as|
|||provision for bad debts|

In the groups, adopting aging analysis method to withdraw bad debt provision:
√ Applicable□ Inapplicable
||||
|-|-|-|
||Proportion of Accounts||
|Aging of receivables||Proportion of Other receivables (%)|
||receivables (%)||
|Within 1 year (including 1|||
||3%|3%|
|year)|||
|1-2 years|3%|3%|
|2-3 years|6%|6%|
|3-4 years|20%|20%|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|4-5 years|20%|20%|
|Over 5 years|100%|100%|

In the groups, adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Inapplicable
In the groups, adopting other methods to withdraw bad debt provision
√ Applicable□ Inapplicable
|||
|-|-|
|Name of Group|Remark|
||Receivables with confirmed letter credit or guarantee from the|
|Group 2: No bad debt provision|bank and provision for sales tax which is to be paid as stipulated|
||in contract are not classified as provision for bad debts|

(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made individually
|||
|-|-|
|Reason of individually withdrawing|If there are substantive evidences shown there is a special impairment of|
|bad debt provision:|insignificant receivables, then they need individually impairment tests.|
|Withdrawal method for bad debt|Measurement of the percentage of bad debts provision is based on|
|provision:|current situation.|

11. Inventory
(1) Classification
Inventories include goods purchased raw materials, finished goods, work-in-progress, and goods for processing on consignment.
(2) Pricing method for outgoing inventories
□ First-in first-out method√ Weighted average method□ Specific identification method□ other
Raw materials and circulating materials are measured at actual cost method. The moving weighted average method shall be used when sending out these materials. Finished goods and work-in-progress are measured at actual cost which is allocated according to the job reference.
(3) Recognition basis of net realizable value of inventories and withdrawal method for impairment provision of inventories
At the end of the year, after overall check of the inventory, draw or adjust provision for inventory devaluation according to the lower of the cost of inventory and net realizable values of inventory.
In normal operation process, net realizable values of commodities inventories for direct sales including finished goods, commodities and materials for sales are determined by the estimated selling prices minus the estimated selling expenses and relevant taxes and fees; In normal operation process, net realizable values of materials that need further processing are determined by the estimated selling prices of the finished goods minus estimated cost to completion, estimated selling expenses and relevant taxes. For the inventory held to implement sales contract or work contract, its net realizable value is calculated on the basis of contract price. For the balance of inventory
beyond the amount of the sales contract, its net realizable value is calculated on the basis of general selling price.
Provision for inventory devaluation is provided for based on individual inventory item at end of the period. For
inventory that has large quantity and low unit price, the provision for inventory devaluation is provided for based
2014 Interim Report of Wuhan Boiler Company Limited on categories of the inventory. For inventory related to the products manufactured and sold in the same district, with same or similar use or purpose, and difficult to account for separately from other items, the provision for inventory devaluation is provided for on a consolidated basis.
When the factors that influence the decreased bookkeeping of inventory value have disappeared, switch back from the provision for inventory devaluation amount that previously appropriated and the amount that switched back is charged to profit or loss of current period.
(4) Inventory system of inventories
Method: Perpetual inventory system
(5) Amortization method of low-value consumption goods and packages
Low-value consumption goods
Amortization method: lump-sum amortization method
Packages
Amortization method: lump-sum amortization method
12. Long-term equity investment
(1) Recognition for initial cost
A. Long-term equity investment caused by the enterprise merger
In case the long-term equity investment are made to obtain the equities of the enterprises under the common control and the Company pays the cash, transfers the non-cash assets or bears the liabilities as the consideration for the merger, the book value share on the merging date to obtain theowners’ equities of the merging party will be deemed as the initial investment cost of long-term equity investment. The difference between the initial investment cost of long-term equity investment and paid cash, transferred non-cash assets and book values of liabilities will be supplemented by the capital reserve; in case the capital reserve is not enough, the remaining gains will be adjusted. In case the Company issues the equity securities as the merger consideration, the book value share on the merging date to obtain theowners’ equities of the merging party will be deemed as the initial investment cost of long-term equity investment. If the book value amount of the issued shares is deemed as the capital, the difference between the initial investment cost of long-term equity investment and the book value amount of the issued shares will be supplemented by the capital reserve; in case the capital reserve is not enough, the remaining gains will be adjusted. All direct expenses related to the enterprise merger, including the auditing expense, evaluation expense, legal service expense, etc will be accrued to the current profit or loss.
In case the long-term equity investment are made to obtain the equities of the merging enterprises which are not under the common control, the consolidation cost determined according to‘Accounting Standard for Business Enterprises No. 20– BusinessCombinations’ on the purchase date will be deemed as the initial investment cost. B. Other types of long-term equity investment
In case the long-term equity investment is made by cash payment, the actual payment amount will be deemed as the initial investment cost.
In case the long-term equity investment is made by issuing the equity securities, the fair values of issued equity securities will be deemed as the initial investment cost.
For the long-term equity investment made by the investors, the values agreed in the investment contracts or agreements (deducting the cash dividends or profits that have been declared but have not been dismissed) will be deemed as the initial investment cost, except that the contracts or agreements provide that the values are not fair. In case the long-term equity investment is made by exchanging the non-currency assets, and this exchange has the commercial substance and the fair values of exchanged assets can be reliably calculated, the fair values of assets surrendered will be deemed as the initial investment cost, unless there is conclusive evidence that the fair values of assets received are more reliable; for exchange of non-currency assets that do not satisfy the above conditions, the sum of book value of assets surrendered and relevant taxes payable will be deemed as the initial investment
cost.
2014 Interim Report of Wuhan Boiler Company Limited In case the long-term equity investment is made by the mode of liability restructure, the fair values of the obtained equities will be deemed as the initial investment cost.
(2) Subsequent measurement and recognition of profits and losses
When the Company is able to exercise significant influence or joint control, the difference of cost of initial investment in excess of the proportion of the fair value of the net identifiable assets in the invested companies is not adjusted against the initial cost of long-term equity investment. The difference of cost of initial investment in short of the proportion of the fair value of the net identifiable assets in the invested companies is charged into the current profit or loss statement. .
TheCompany’s long-term equity investments in subsidiaries are accounted for by the cost method and adjusted according to the equity method when preparing consolidated financial statements. When the Company has neither joint control nor significant influence in the invested companies, there is no quotation available on the active market, and the fair value of the investment cannot be reliably measured, the long-term equity investment is accounted for under the cost method.
When the Company has joint control or significant influence over the invested companies, the long-term equity investment is accounted for under the equity method.
For profit or loss of internal transactions occurred among the Company and joint ventures, the proportion attributable to the Company will be calculated according to shareholdings and offset in the application of equity method.
Recognition of share of losses of the invested companies under the equity method is treated in the following steps: First, reduce the book value of the long-term equity investment. Second, when the book value is insufficient to cover the share of losses, investment losses are recognized up to a limit of book values of other long-term equity which form net investment in substance by reducing the book value of long term receivables, etc. Finally, after all the above treatments, if the Company is still responsible for any additional liabilities in accordance with the provisions stipulated in the investment contracts or agreements, estimated liabilities are recognized and charged into current investment loss according to the liabilities estimated.
If the invested company achieve profit in subsequent periods, the treatment is in the reversed steps described above after deduction of any unrecognized investment losses, i.e., reduce book value of estimated liabilities recognized, restore book values of other long-term equity which form net investment in substance, and in long-term equity investment, and recognize investment income at the same time.
Treatment of other equity changes except for net profit or loss in the invested companies: For other equity changes except for net profit or loss in the invested companies, if the proportion of investments remain unchanged, the Company calculates the proportion it shall enjoy or bear and adjust book value of long-term equity investment, and increase or decrease capital reserves– other capital reserves at the same time.
(3) The basis for determination of joint control or significant influence over investee enterprise
If, in accordance with provisions in the contracts, the Company enjoys joint control over certain economic activities only when taking part in significant financial and operational decisions with investors in need of share of control who unanimously agree, the Company is deemed to enjoy joint control with other parties over the invested companies. If the Company is authorized to take part in decision making with regard to the financial and operational policies, but is unable to control or control jointly with other parties over the invested company, the Company is deemed to be able to exercise significant influence over the invested companies.
(4) Impairment test and method of provision for impairment loss
A. In case the cost method is used to calculate the long-term equity investments which are not quoted in the active market or whose fair values cannot be reliably calculated, the depreciation loss will be determined based on the difference between the book values and current values determined by the discounting of future cash flow in line with the current market return rate of similar financial assets.
2014 Interim Report of Wuhan Boiler Company Limited B. For other long-term equity investments, in case the calculation results of receivable amounts indicate that the receivable amount of this long-term equity investment is less than their book values, the difference will be confirmed as the asset depreciation losses.
Once the depreciation loss of long-term equity investment is confirmed, they will not be reversed.
13. Investment properties
1. Investment property is property held to earn rental or for capital appreciation or both. It includes a land use right that is leased out, a land use right held for transfer upon capital appreciation, and a building that is leased out.
2. The investment properties shall be initially measured in light of their cost when getting it and make a follow-up measurement to the investment real estate through the cost pattern on the date of the balance sheet. The test method of depreciation or impairment of the buildings is the same as fixed assets, the test method of depreciation or impairment of the land use rights is the same as intangible assets. The details of assess method and impairment provision for investment properties are in Notes4.17―Impairment of non-current non-financial assets.
Where an investment property is disposed or no longer in use permanently and no economic benefits shall be obtained from the disposal, derecognized the investment property. The income from sale, transfer or disposal of the investment property is recorded in the profit or loss after deduction of its carrying amount and related tax. 14. Fixed assets
(1) Recognition of fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of services, for rental to others, or for administrative purposes; they have useful lives over one fiscal year. And they shall be recognized only when both of the following conditions are satisfied:
A. It is probable that economic benefits associated with the assets will flow to the enterprise; and
B. The cost of the fixed assets can be measured reliably.
(2) Recognition basis and pricing method of fixed assets by finance lease
The Company identifies a lease of asset as finance lease when substantially all the risks and rewards incidental to legal ownership of the asset are transferred.
A fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased asset and the present value of the minimum lease payments at the inception of lease.
The depreciation method of fixed assets acquired under finance lease is consistent with that for depreciable assets owned by the Company. If the Company can reasonably confirm that it will obtain the ownership of leased asset at the end of lease term, the leased asset shall be depreciated during the useful life of the leased asset. If the Company cannot reasonably confirm that it will obtain the ownership of leased asset at the end of lease term, the leased asset shall be depreciated during shorter of the useful life of the leased asset and the lease term.
(3) Depreciation methods of fixed assets
|||||
|-|-|-|-|
|Category of fixed assets|Useful life (Y)|Expected net salvage|Annual deprecation|
|||value||
|Houses and buildings|40|0%|2.50%|
|Machineries|7-20|0%|14.29%-5.00%|
|Electronic equipment and||||
||3-18|0%|33.33%-5.56%|
|office equipment||||
|Vehicles|6|0%|16.67%|

2014 Interim Report of Wuhan Boiler Company Limited (4) Testing method of impairment and withdrawal method of provision for impairment on fixed assets At balance sheet date, the Company judges if there is indication to the impairment. If the indications like continuing decrease in the fixed assets values, or obsolete technologies, damages, long-idle extra exist, net realizable value must be estimated. When net realizable value of the fixed asset is lower than its book value, reduce fixedasset’s book value to its net realizable value. The reduced amount is recognized as fixed asset impairment and charged to current period of profit and loss, and fixed asset impairment must be provided accordingly. Once fixed asset impairment loss is recognized, it cannot be reversed in future accounting period. (5) Other explanations
Subsequent expenditures of fixed asset shall be recognized as the cost of fixed assets if the expenditures can bring in economic benefit to the Company and the expenditures can be measured reliably. If the expenditures are to replace part of fixed asset, it should deduct the fixedasset’s book value; otherwise it is charged to current period profit and loss.
15. Construction in progress
(1) Categories of construction in process
Construction in progress of the Company includes constructing property, building installation, equipment installation, prepaid expenses, as well as individual projects.
(2) Standards and time of transferring construction in process into fixed asset
For the construction in progress, all expenses occurring before they are ready for the use will be the book values as the fixed assets. In case the construction in progress has been ready for use but the final accounts for completion have not been handled, from the date when such projects has been ready for use, the Company will evaluate the values and determine the costs based on the project budgets, prices or actual costs of projects, etc and the depreciation amount will also be withdrawn; when the final accounts for completion are handled, the Company will adjust the originally evaluated values subject to the actual costs, but will not adjust the withdrawn depreciation amount.
(3) Impairment test method and withdrawal method for impairment provision of construction in process At balance sheet date the Company exams all the construction in progress to judge if there is indication of impairment. If indications exist: i) long suspension of construction in progress and will not recommence in future 3 years; ii) project under construction has no advantages in technologies and capacity and the economic benefit brought to the Company is uncertain, the net realizable value should be estimated. If the net realizable value of construction in progress is lower than its book value, reduce its book value to net realizable value, the reduced amount is recognized as impairment loss and charged to current period profit and loss, and the construction in progress impairment is provided accordingly. Once impairment provision of construction in process is recognized, it should not be reversed in future accounting period.
16. Borrowing costs
(1) Recognition principles for capitalization of borrowing costs
In case the borrowing expenses occurring in the Company may directly be attributable to the construction and productions of assets complying with the capitalization conditions, they will be capitalized and accrued to the relevant capital costs; other borrowing expenses will be confirmed as the expenses based on the actual amount at the time of occurrence and accrued to the current profit or loss.
The assets complying with the capitalization conditions mean the assets such as fixed assets, investment real estates and inventory etc. that need a long time of construction and production activities before they are ready for
use or for sales.
2014 Interim Report of Wuhan Boiler Company Limited The borrowing expenses begin to be capitalized under the following circumstances:
A. The asset payment have been made which include the payment such as the paid cashes, transferred non-currency assets or borne liabilities with the interests to construct or produce the assets complying with the capitalization conditions;
B. The borrowing expenses have occurred;
C. The necessary construction or production activities to make the assets ready for use or sales have been launched.
In case during the construction or production period the assets complying with the capitalization conditions are abnormally suspended and the suspension period exceeds 3 months continuously, the capitalization of borrowing expenses will also be suspended.
The capitalization of borrowing expenses for the assets that have been constructed or produced and are ready for use or sales will be stopped.
When parts of the purchased assets or assets whose production satisfies the capitalization conditions are completed respectively and can be used individually, the capitalization of the borrowing expenses of these parts will be stopped.
(2) Capitalization period of borrowing costs
The capitalization period means the period from the moment that the borrowing expenses start to be capitalized to the moment that the capitalization is stopped, which does not include the period that the capitalization of borrowing expenses is suspended.
(3) Period for suspending capitalization of borrowing costs
Capitalization of borrowing costs should be suspended during periods in which the acquisition or construction is interrupted abnormally, and the interruption period is three months or longer. These borrowing costs should be recognized directly in profit or loss during the current period. However, capitalization of borrowing costs during the suspended periods should continue when the interruption is a necessary part of the process of bringing the asset to working condition for its intended use.
Capitalization of borrowing costs ceases when the qualifying asset being acquired or constructed is substantially ready for its intended use. Subsequent borrowing costs should be expensed off during the period in which they are incurred.
(4) Calculation method of capitalized amount of borrowing costs
To the extent that funds are borrowed specifically for the purpose of acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization on that asset is determined as the actual borrowing costs incurred on that borrowing during the period less any investment income on the temporary investment of the borrowing.
To the extent that funds are borrowed generally and used for the purpose of acquiring or constructing a qualifying asset, the amount of borrowing costs eligible for capitalization shall be determined by applying a capitalization rate to the weighted average of excess of accumulated expenditures on qualifying asset over that on specific purpose borrowing. The capitalization rate is the weighted average of the borrowing costs applicable to the borrowings of the Company that are outstanding during the period, other than borrowings made specifically for the purpose of acquiring or constructing a qualifying asset.
Notes: If adopting actual interest rate to calculate interest costs, calculation process of actual interest rate shall be explained.
17. Intangible assets
(1) Pricing method of intangible assets
Intangible asset is measured initially at actual cost when it is acquired. Acquisition costs of intangible asset
2014 Interim Report of Wuhan Boiler Company Limited include purchase cost, related taxes and attributable costs which are incurred to make the intangible asset reach intended useful condition. For those the price of intangible assets deferred paid exceed normal credit condition so substantively has financing character, the cost of intangible assets is confirmed on the basis of present value of purchasing price.
(2) Estimated useful life of intangible assets with limited useful life
For intangible asset with finite useful life, the Company estimates useful life of intangible useful life upon acquisition and amortize it systematically among the useful life, the amortized amount is charged to current period profit and loss based on benefited item, and the specific amortized amount is cost after estimated residual value. The accumulated impairment provision should be deducted for intangible asset with impairment provision and residual value is zero, except that: i) third party commits to purchase the intangible asset; ii) estimated residual value of intangible asset can be obtained from the active market and the existence of the market at the end of useful life of the intangible asset is probable.
||||
|-|-|-|
|Item|Estimated useful life|Basis|
|Software|3 years|Based on the cycle of software update|
|Proprietary technology|6 years -15 years|Contract|
|Land use right|50 years|Law, useful life for industry land is 50 years|

(3) Judgment basis of intangible assets with uncertain useful life
For intangible asset with infinite useful life, the Company reviews the useful life and amortization method of intangible asset. The amortization period and amortization method are changed when useful life and amortization method are different from pervious estimation.
(4) Withdrawal of impairment provision of intangible assets
Net realizable value is estimated when the indications of impairment exist:
A.The Company estimates net realizable value based on single intangible asset when there is indications of impairment for that single intangible asset;
B.The Company estimates net realizable value base on the asset group when it is difficult to estimate net realizable value of single intangible asset;
C. Net realizable value is the higher amount between the net amount of intangible asset fair value minus disposal expenses and estimated present value of future cash flow.
When net realizable value is lower than its book value, reduce the book value to net realizable value, the deducted amount is recognized as impairment loss and charged to current period profit and loss, impairment is provided accordingly.
(5) Criteria of separating the research phase and development phase of internalR&D project
Inapplicable
(6) Calculation of the expenditures of internalR&D project
Inapplicable
18. Amortization method of long-term deferred expenses
A. Long-term deferred expenses refer to the expenses which ought to be allocated in current period and future
periods.
2014 Interim Report of Wuhan Boiler Company Limited B. Long-term deferred expenses are measured at initial costs, commencement costs are charged to current period profit and loss when incurred; installation expenses of operating leased fixed asset are allocated evenly during the leasing period or 5 years whichever is a lower, other long-term deferred expense are allocated evenly during the benefited period based on project. Those long-term deferred expenses which cannot generate economic benefit in future accounting period are charged to current period of profit and loss.
19. Estimated liabilities
Estimated liabilities are recognized i) when the Company is involved in litigation or debt warrant, lost making contract or restructuring event; ii) it is possible to pay asset or render service in foreseeable future; iii) the amount can be measured reliably.
(1) Recognition criteria of estimated liabilities
When businesses related to external security, pending litigation or arbitration, product quality assurance, retrenchment plan, contract of loss, reconstruction obligation, disposing obligation of fixed assets and other contingencies satisfy all the following conditions, the Company will recognize them as liabilities:
A. The obligation is the present obligation of the Company;
B. The performance of such obligation is likely to lead to an outflow of economic benefits;
C. The amount of the obligation can be reliably measured.
(2) Measurement of estimated liabilities
Estimated liabilities shall be initially measured according to the best estimated amount required to be paid when current obligations are fulfilled.
When determining the best estimated amount, it should take full consideration of the risks, uncertainties and time value of money related to contingencies.
Best estimated amount is handled under the following circumstances:
A. If the amount required is in a continuous range, and the likelihood of various outcomes within the scope is same, then the estimated amount is determined according to the median of the range, which is the average amount of upper and lower caps.
B. If the amount requiredisn’t in a continuous range, or thereisn‘t such a continuous range but the likelihood of various outcomes within the scopeisn’t same, such as the contingency involves a single item, then the best estimated amount is determined in accordance with the amount with most likelihood; if the contingency involves several items, then the best estimated amount is determined according to various possible outcomes and associated probabilities.
If expenses required to settle all or part of estimated debt are expected to be compensated by a third party, then the amount of compensation will be separately recognized as an asset upon basically being identified to be received, and the amount of compensation recognized will not exceed the book value of projected liabilities.
20. Revenue
(1) Criteria for recognition time of revenue from selling goods
1) Construction contract revenue
a）When
the outcome of a construction contract can be estimated reliably, contract revenue and contract costs associated with the construction contract is recognised as revenue and expenses respectively by reference to the stage of completion of the contract activity at the balance sheet date. The stage of contract completion is recognized by reference to the ratio of the accumulative actual contract cost to totally estimated contract cost. The outcome of a construction contract can be estimated reliably when all the following conditions are satisfied:
1）when
the outcome of a construction contract can be estimated reliably, total contract revenue can be measured reliably;
2）It
is probable that the economic benefits associated with the contract will flow to the entity;
3）Both
the contract costs to complete the contract and the stage of contract completion at the balance sheet date can be measured reliably; and
4）The
actual contract costs attributable to the contract can be
2014 Interim Report of Wuhan Boiler Company Limited clearly identified and reliably measured.
b) When the outcome of a construction contract cannot be estimated reliably and contract costs are expected to be recoverable, revenue is recognised only to the extent of contract costs incurred that it is probable will be recoverable. Contract costs are recognised as an expense in the period in which they are incurred. Contract costs that are not probable of being recovered are recognised as an expense immediately and no revenue is recognised. c) If the accumulative estimated contract costs exceed the contract revenue, an estimated loss should be recognized in the current financial period.
(2) Recognition basis of revenue from transferring use rights of assets
Revenue arising from the use by others of theCompany’s assets includes interest revenue and royalty revenue. The Company recognized revenue arising from the use by others of theCompany’s assets when (a) it is probable that the economic benefits associated with the transaction will flow to the Company and (b) the amount of the revenue can be measured reliably.
(3) Recognition basis of revenue from rendering of services
①
Revenue associated with the transaction is recognised by reference to the stage of completion of the transaction at the balance sheet date. The service revenue is recognised at the balance sheet date according to the percentage of completion of the services when (i) the total revenue and total cost can be reliably measured, (ii) the economic benefit pertaining to the service will flow to the Company; (iii) the percentage of completion can be determined reliably.
②
When the outcome of the transaction involving the rendering of services cannot be estimated reliably at the balance sheet date, revenue is recognised according to the following:
A. When it is probable that the Company will recover the transaction costs incurred, revenue is recognised only to the extent of the expenses recognised that are recoverable, and the costs incurred are recognised as an expense. B. When it is not probable that the costs incurred will be recovered, revenue is not recognised and the costs incurred are recognised as an expense.
(4) Recognition basis and method for the schedule of contracted project when recognizing the revenue from providing labour services and construction contract by percentage-of-completion method
The Company adopts percentage-of-completion method which is calculated based on accumulated costs incurred divided by estimated total costs in order to determine the percentage-of-completion of contracted project. At balance sheet date The Company recognizes project revenue by contract price times percentage-of-completion then deducts the accumulated revenue recognized in previous accounting periods. And project costs are recognized by estimated project total costs time percentage-of-completion then deduct accumulated project costs recognized in previous accounting periods.
When project outcome cannot be estimated reliably at balance sheet date, it shall be handled:
A. When incurred project costs can be recovered, project revenue shall be recognized based on costs incurred and project costs are recognized accordingly;
B. When incurred project costs cannot be recovered, project revenue shall not be recognized and project costs shall be charged to current period profit and loss.
21. Government Grants
(1) Types
A government subsidy means the monetary or non-monetary assets obtained free by the Group from the government, but excluding the capital invested by the government as the owner of the enterprise. Government subsidies consist of the government subsidies pertinent to assets and government subsidies pertinent to income. (2) Accounting treatment method
(1) Recognition of government grants
2014 Interim Report of Wuhan Boiler Company Limited No government grants may be recognized unless the following conditions are met simultaneously:
①
The company is able to meet the requirements for the government subsidies; and
②
The company can receive the government subsidies.
(2) Measurement of government grants
①
If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivable amount; if a government subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair value cannot be obtained in a reliable way, it shall be measured at its nominal amount.
②
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the useful lives of the relevant assets, and included in the current profits and losses. If the relevant assets are sold, transferred, obsolete or destroyed before useful lives end, undistributed deferred income shall be recognized as the current profits and losses of disposal of assets.
The government subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances as follows:
A. Those subsidies used for compensating the related future expenses or losses of the enterprise shall be recognized as deferred income and shall be included in the current profits and losses during the period when the relevant expenses are recognized; or
B. Those subsidies used for compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits and losses.
③
If it is necessary to refund any government subsidy which has been recognized, it shall be treated respectively in accordance with the circumstances as follows:
A. If there is the deferred income concerned, the book balance of the deferred income shall be offset against, but the excessive part shall be included in the current profits and losses; and
B. If there is no deferred income concerned to the government subsidy, it shall be directly included in the current profits and losses.
22. Deferred income tax assets and liabilities
(1) Recognition basis of deferred income tax assets
①
Where there are deductible temporary differences between the carrying amount of assets or liabilities in the balance sheet and their tax bases, a deferred tax asset shall be recognised for all those deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Deferred tax assets should be measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled.
②
At the balance sheet date, where there is strong evidence showing that sufficient taxable profit will be available against which the deductible temporary difference can be utilized, the deferred tax asset unrecognized in prior period shall be recognized.
③
The Company assesses the carrying amount of deferred tax asset at the balance sheet date. If
it’s
probable that sufficient taxable profit will not be available against which the deductible temporary difference can be utilized, the Company shall write down the carrying amount of deferred tax asset, or reverse the amount written down later whenit’s probable that sufficient taxable profit will be available.
(2) Recognition basis of deferred income tax liabilities
Deferred tax liability shall be recognized for all taxable temporary differences, which are differences between the carrying amount of an asset or liability in the balance sheet and its tax base, and measured at the tax rates that are expected to apply to the period when the asset is realized or the liability is settled.
23. Operating lease and financial lease
（（（（1））））Accounting
treatments of operating lease
Lessee in an operating lease shall treat the lease payment under an operating lease as a relevant asset cost or the current profit or loss on a straight-line basis over the lease term. The initial direct costs incurred shall be
2014 Interim Report of Wuhan Boiler Company Limited recognized as the current profit or loss; Contingent rents shall be charged as expenses in the periods in which they are incurred. .
Lessors in an operating lease shall present the assets subject to operating leases in the relevant items of their balance sheet according to the nature of the asset. Lease income from operating leases shall be recognized as the current profit or loss on a straight-line basis over the lease term; Initial direct costs incurred by lessors shall be recognized as the current profit or loss; Lessors shall apply the depreciation policy for the similar assets to depreciate the fixed assets in the operating lease; For other assets in the operating lease , lessors shall adopt a reasonable systematical method to amortize; Contingent rents shall be charged as expenses in the periods in which they are incurred.
（（（（2））））Accounting
treatments of financial lease
For the lessee, a fixed asset acquired under finance lease shall be valued at the lower of the fair value of the leased asset and the present value of the minimum lease payments at the inception of lease. The amount of minimum lease payments should be recorded in long-term account payable, the difference should be recorded as unrecognized financing charges; The initial direct costs identified as directly attributable to activities performed by the lessee during the negotiation and signing of the finance lease such as handling fees, legal fees, travel expenses, stamp tax shall be counted as lease asset value; the unrecognized financing charges shall be apportioned at each period during the lease term and adopt the effective interest rate method to calculate and confirm the current financing charge; Contingent rents shall be charged as expenses in the periods in which they are incurred. When the lessee calculates the present value of the minimum lease payments, for that lessee who can obtain the interest rate implicit in the lease, the discount rate shall be the interest rate implicit in the lease; otherwise the discount rate shall adopt the interest rate specified in the lease agreement. If the lessee cannot get the interest rate implicit in the lease and there is no specified interest rate in the lease agreement, the discount rate shall adopt the current bank loan interest rate.
Lessees shall depreciate the leased assets with the depreciation policy which is consistent with the normal depreciation policy for similar assets. If there is reasonable certainty that the lessee will obtain ownership by the end of the lease term, the depreciation shall be allocated to the useful life of the asset. If there is no reasonably certainty that the lessee will obtain ownership by the end of the lease term, the asset shall be depreciated over the shorter of the lease term and its useful life.
At the inception of financial lease, lessor of the financial lease shall record the sum of the minimum lease payments and initial direct costs as the financing lease accounts receivable, and also record the unguaranteed residual value; recognize the difference between the total minimum lease payments , initial direct costs ,unguaranteed residual value and the sum of the present value as the unrealized financing income; the unrealized financing income shall be distributed to each period over the lease term; adopt the actual interest rate to calculate the current financial income; Contingent rents shall be in the periods in which they are incurred. (3) Accounting treatment for those sale and lease-back
Inapplicable
24. Assets held for sales:
(1) Recognition criteria of the assets held for sale
The Non-Current Assets which meet the following conditions will be classified as assets held for sales by the company:
①The
entity has made the resolution in disposing the non-current assets.
③
The entity has signed the irrevocable transfer agreement with the assignee.
④
The sale transaction is highly probable to be completed within one year.
(2) Accounting treatments of assets held for sales
For the fixed assets held for sales, the entity shall adjust the predicted net residual value of this fixed asset to make the predicted net residual value of this fixed asset to reflect the amount of its fair value less costs to sell, but it
2014 Interim Report of Wuhan Boiler Company Limited shall not exceed the original book value of fixed assets at the time when it meets the conditions of held for sales. The difference between the original book value and the adjusted predicted net residual value shall be treated as loss in assets and presented in profit or loss of current period. The fixed assets held for sales shall not count the depreciation but shall be measured at the lower of its carrying amount and the fair value less costs to sell.
The other non-current assets such as intangible assets which meet the conditions of held for sales shall be treated in accordance to the above principles.
25. Hedging accounting
The company uses fair value hedging for its hedging.
(1) For derivative instruments as the hedging instrument, the gain or loss resulted from the changes of fair value is included in the profit/loss of the current period; for non-derivative instruments as the hedging instrument, the gain or loss resulted from the change of book value due to foreign exchange rate is included in the profit/loss of the current period.
(2) The gain or loss resulted from the hedged risk of the hedged items is included in the profit/loss of the current period. The book value of the hedged items is adjusted at the same time.
(3) In a fair value hedging of a firm commitment of a purchased asset or assumed liability, the accumulated amount in the change of fair value (profit or loss being confirmed) caused by the hedging risk of this firm commitment should be used to adjust the initial confirmed amount of the purchased assets of assumed liability of the firm commitment.
(4) When the following conditions are satisfied, the company stop using the fair value hedging:
A. Hedging instruments are expired, sold, contract are terminated or executed.
B. The hedge no longer satisfies the conditions for hedging accounting.
C. Cancellation of the designation of the hedging.
26. Changes in main accounting policies and estimates
Were the main accounting policies or estimates changed during the report period?
□
Yes
√
No
（（（（1））））Changes
of accounting policy
There are no changes in the accounting policies for the previous financial year.
（（（（2））））Changes
in accounting estimate
There are no changes in the accounting policies for the previous financial year.
27. Correction of previous accounting errors
Was any accounting error made in previous periods discovered in the report period?
□
Yes
√
No
(1) Retrospective restatement method
Was any previous accounting error adopting retrospective restatement method discovered in the report period?□
Yes
√
No
(2) Prospective application method
Was any previous accounting error adopting prospective application method discovered in the report period?□
Yes
√
No
28. Other main accounting policies and estimates as well as compilation method of financial statements
None.
2014 Interim Report of Wuhan Boiler Company Limited V. Taxation
1. Main taxes and tax rates
||||
|-|-|-|
|Category of taxes|Tax basis|Tax rate|
|VAT|Taxable revenue|6%,17%|
|Business tax|Taxable revenue|5％|
|Urban maintenance and construction tax|Taxable VAT, taxable business tax|7％|
|Enterprise income tax|Taxable income|25％|
|Education surtax|Taxable VAT, taxable business tax|3％|
|Local education surtax|Taxable VAT, taxable business tax|2％|
|Watercourse and embankment tax|Taxable VAT, taxable business tax|2％|

The income tax rates adopted by each subsidiary and branch factory
Subsidiary Wuhan Lanxiang Power Environmental Protection Technology Co., Ltd has ceased operating activities, there was no taxable profit during the report period.
2. Tax preference and approval
None
3. Other explanation
None
VI. Business combination and consolidated financial statements
1. Subsidiaries
(1) Subsidiaries obtained by establishment and investment
Unit: RMB Yuan
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2014 Interim Report of Wuhan Boiler Company Limited
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|y|||||||||||||
||||||technica||||||||
|Limited|||||||||||||
||||||l||||||||
||||||Consult||||||||
||||||ancy,||||||||
||||||technica||||||||
||||||l||||||||
||||||service,||||||||
||||||sales of||||||||
||||||develop||||||||
||||||ed||||||||
||||||products||||||||
||||||, energy||||||||

2014 Interim Report of Wuhan Boiler Company Limited
||
|-|
|project|
|(non-co|
|nstructi|
|on|
|project),|
|Gas-stea|
|m|
|Combin|
|ed|
|Cycle|
|Heat|
|Recover|
|y Boiler,|
|Circulat|
|ing|
|fluidize|
|d bed|
|Boiler,|
|Producti|
|on and|
|sale of|
|the|
|boiler’s|
|compon|
|ents and|
|the|
|energy|
|saving|

Other Notes to subsidiaries obtained by establishment and investment: none.
(2) Subsidiaries obtained by business combination under the same control
None
(3) Subsidiaries obtained by business combination not under the same control
None
2. Special purpose entities or operating entities with control right formed by entrusted operation or lease None
3. Explanation on changes in consolidated scope
□ Applicable√ Inapplicable
2014 Interim Report of Wuhan Boiler Company Limited 4. Subsidiaries that newly combined into consolidation scope in the report period
None
5. Business combination under same control during the report period
None
6. Business combination not under same control during the report period
None
7. Subsidiaries reduced by selling equities without control right during the report period
None
8. The counter purchases in the report period
None
9. Mergers in the report period
None
10. Exchange rates of major items in financial statements for foreign entities
None
VII. Notes on major items in consolidated financial statements of the Company
1. Monetary funds
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Amount in|Exchange||Amount in|Exchange||
||||Amount in RMB|||Amount in RMB|
||foreign currency|rate||foreign currency|rate||
|Bank deposit::|--|--|21,900,487.66|--|--|8,283,224.28|
|RMB|--|--|21,746,077.13|--|--|7,876,756.35|
|USD|4,932.13|6.1528|30,346.40|2,000.93|6.0969|12,199.47|
|EUR|14,778.65|8.3946|124,060.85|46,830.98|8.4189|394,265.34|
|JPY|54.00|0.0608|3.28|54.00|0.0578|3.12|

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|Other monetary funds:|--|--|1,831,775.99|--|--|1,831,672.83|
|RMB|--|--|1,831,775.99|--|--|1,831,672.83|
|Total|--|--|23,732,263.65|--|--|10,114,897.11|

 Note: Closing balance of monetary funds increased by134.63% compared to last year, mainly due to the increase of collection from customer in this report period.
2. Notes receivable
(1) Category of Notes receivable:
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance|1,500,000.00|15,000,000.00|
|Total|1,500,000.00|15,000,000.00|

 Note: Closing balance of the note receivable decreased90% compared to prior period, which is mainly due to the payment to suppliers by endorsing bank notes which were received from customers.
(2) Notes receivable pledged at period-end
None
(3) Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or agreement, and undue notes endorsed to other parties at the end of the period
Notes transferred to accounts receivable because drawer of the notes fails to execute the contract or agreement
None
Undue notes endorsed to other parties by the Company
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Issuing entity|Date of issuance|Expiring date|Amount|Remark|
|State Grid Energy Hebu|||||
|Coal and Electric Power|2014/01/23|2015/01/22|13,000,000.00||
|Co., Ltd|||||
|Binzhou MOVEVER|||||
||2014/05/12|2014/11/12|10,000,000.00||
|Dicastal Wheel Co., Ltd.|||||
|Shandong Chuangfeng|||||
|Metal Technology Co.,|2014/03/31|2014/09/29|8,000,000.00||
|Ltd.|||||
|Shandong innovative|||||
|metal Polytron|2014/05/08|2014/11/08|9,500,000.00||
|Technologies Inc|||||

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|Tengda northwestFerroalloy Co., Ltd.|||||
||2014/02/26|2014/08/26|3,000,000.00||
|Total|--|--|43,500,000.00|--|

Notes of bank acceptance bill that already discounted or pledged
None
3. Accounts receivable
(1) Accounts receivable listed by categories
Unit: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||Opening balance||||
||||Book balance||Bad debt provision||Book balance||Bad debt provision||
|Category|||||||||||
|||||Proportion||Proportion||Proportion||Proportion|
||||Amount||Amount||Amount||Amount||
|||||(%)||(%)||(%)||(%)|
|Accounts receivable with|||||||||||
|||eivable with|||||||||
|significant single amount|||||||||||
||||25,780,000.||25,780,000.||25,780,00||25,146,400.0||
|for which bad debt||||9.60%||100.00%||6.99%||97.54%|
||||00||00||0.00||0||
|provi|sion separately||||||||||
|accrued|||||||||||
|Accounts receivable for which bad debt provisions are made on the group basis|||||||||||
|Accounts receivable for|||||||||||
||||219,746,92||99,513,895.||313,941,2||106,236,757.||
|which bad debt provisions||||81.82%||45.29%||85.13%||33.84%|
||||0.64||43||26.09||73||
|are made on aging basis|||||||||||
||||219,746,92||99,513,895.||313,941,2||106,236,757.||
|Subtotal of the groups||||81.82%||45.29%||85.13%||33.84%|
||||0.64||43||26.09||73||
|Accounts receivable with|||||||||||
|insignificant single|||||||||||
||||23,042,460.||22,572,460.||29,042,46||16,004,460.0||
|amount for which bad debt||||8.58%||97.96%||7.88%||55.11%|
||||00||00||0.00||0||
|provision separately|||||||||||
|accrued|||||||||||
||||268,569,38||147,866,35||368,763,6||147,387,617.||
|Total||||--||--||--||--|
||||0.64||5.43||86.09||73||

Notes to category of accounts receivable:
Note: the monetary standards of provision for bad debts of the individually significant receivables is top 5 account receivables at year end, which he impairment test is carried on individually. For significant receivables, If there are substantive evidences indicating that
a receivable has been impaired, a provision for bad debts should be made; If a receivable is found not to be individually impaired, it
should be included in a group of similar credit risk characteristics receivables and a collective assessment of impairment should be
2014 Interim Report of Wuhan Boiler Company Limited made. Receivables which are not significant, but still need individually recognition of bad debt provision, if there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually impairment tests.
Note: Closing balance of the account receivable decreased45.48% compared to prior period, mainly due to collection of accounts receivable which were booked in prior period.
Accounts receivable with significant single amount for which bad debt provision separately accrued
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Closing balance|Bad debt provision|Proportion|Notes|
|||||The Company is|
|||||required to bear part|
|||||of the subsequent|
|Dongfang Xiwang Baotou Xitu|||||
||25,780,000.00|25,780,000.00|100.00%|costs and thus the|
|Aluminium Co., Ltd.|||||
|||||receivable amount is|
|||||not expected to be|
|||||fully recoverable.|
|Total|25,780,000.00|25,780,000.00|--|--|

In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance|||
||Balance||||Balance|||
|Aging of receivables||||||||
||||Proportion|Bad debt provision||Proportion|Bad debt provision|
||Amount||||Amount|||
||||(%)|||(%)||
|Within 1 year (including 1 year)||||||||
|including：||--|--|--|--|--|--|
|Within 1 year (including||||||||
|||116,751,385.90|53.13%|3,502,866.03|190,066,260.86|60.54%|5,701,987.83|
|1 year)||||||||
|Sub-total (Within 1 year)||116,751,385.90|53.13%|3,502,866.03|190,066,260.86|60.54%|5,701,987.83|
|1-2 years(including 2||||||||
|||7,057,000.00|3.21%|211,710.00|9,038,000.00|2.88%|271,140.00|
|year)||||||||
|2-3 years(including 3||||||||
|||30,195.98|0.01%|1,811.76|2,047,451.61|0.65%|122,847.10|
|year)||||||||
|3-4 years(including 4||138,538.90|0.06%|27,707.78|242,676.22|0.08%|48,535.24|

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|year)|||||||
|4-5 years(including 5|||||||
|||||15,568,237.30|4.96%|3,113,647.46|
|year)|||||||
|Above 5 years|95,769,799.86|43.58%|95,769,799.86|96,978,600.10|30.89%|96,978,600.10|
|Total|219,746,920.64|--|99,513,895.43|313,941,226.09|--|106,236,757.73|

 In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable√ Inapplicable
In the groups, accounts receivable adopting other methods to accrue bad debt provision
□ Applicable√ Inapplicable
Accounts receivable with insignificant single amount for which bad debt provision separately accrued
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item||Closing balance||Bad debt provision|||Provision|Reasons for provision||
||||||||%|||
|Datang Liaoyuan Power Plant||10,010,000.00||10,010,000.00||100.00%||Deduction for product quality issues||
|Guodian Lanzhou Thermalpower Co., Ltd.||500,000.00||30,000.00||6.00%||The Company is required to bear part ofthe subsequent costs and thus thereceivable amount is not expected to befully recoverable.||
|Gansu Datang Xigu Thermalpower Co., Ltd.||11,952,460.00||11,952,460.00||100.00%||The retention money is difficult to bereceived due to product quality issues.||
|Gansu Diantou JinchangGenerating Co., Ltd.||580,000.00||580,000.00||100%||The retention money is difficult to befully received.||
||Total||23,042,460.00||22,572,460.00||--||--|

(2) Accounts receivable reversed or collected in the report period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Bad debt provisionbefore reversal orcollection||
|||Basis for bad||Amount reversed or|
|Item|Reason for reversed or collected||||
|||debt provision||collected|
|Datang Liaoyuan Power|The receivable amount has been|Deduction for|||
||||200,000.00|1,000,000.00|
|Plant|recovered.|product quality|||
|||issues|||
|Guodian Lanzhou Thermal|The receivable amount has been|The Company is|||
|power Co., Ltd.|recovered.|required to bear|||
|||part of the|240,000.00|4,000,000.00|
|||subsequent costs|||
|||and thus the|||
|||receivable|||

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|||amount is not|||
|||expected to be|||
|||fully recoverable.|||
|Gansu Datang Xigu|The receivable amount has been|The retention|||
|Thermoelectric Co., Ltd.|recovered.|money is difficult|||
||||1,000,000.00|1,000,000.00|
|||to be received|||
|||due to the quality|||
|||issues.|||
|Shuangyashan Thermal|The receivable amount has been|Over 5 years|175,000.00|175,000.00|
|Power Co. Ltd.|recovered.||||
|Xinjiang Huadian Changji|The receivable amount was|Over 5 years|||
||||200,000.00|200,000.00|
|Thermal power PhaseⅡCo.,|recovered.||||
|Ltd.|||||
|Shanxi Lu’an Yuwu Thermal|The receivable amount was|Over 5 years|590,000.00|590,000.00|
|power Co., Ltd.|recovered.||||
|Tianjin Dagu Chemical|The receivable amount was|Over 5 years|193,800.24|193,800.24|
|Industry Co., Ltd..|recovered.||||
|Anshan Xinli Energy Co.,|The receivable amount was|Over 5 years|50,000.00|50,000.00|
|Ltd.|recovered.||||
|Total|||2,648,800.24|--|

The withdrawal of bad debt provision of accounts receivable with significant single amount or insignificant single
None
(3) The write-off accounts receivable
□ Applicable√ Inapplicable
(4) Particulars about accounts receivable due to shareholders holding5% (including5%) voting rights of the Company
□ Applicable√ Inapplicable
(5) Top 5 customers of accounts receivables
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||The relationship|||Proportion(|
|Company||Amount|Age||
||with the Company|||%)|
|Alstom Power Inc.|Affiliated||89,667,285.86 within 1||
|||89,697,481.84|year, 30,195.98 for 2-3|33.40%|
||||years||
|Shanxi Zhengxin Group Co., Ltd.|Non-affiliated|39,820,000.00|Over 5 years|14.83%|
|Dongfang Xiwang Baotou Xitu Aluminium|Non-affiliated||Over 5 years||
|||24,820,000.00||9.24%|
|Co., Ltd.|||||
|Shandong Luneng Materials Group Co., Ltd.|Non-affiliated|23,290,000.00|Within 1 year|8.67%|
|Henan Zhongmai Yongan Power Co. Ltd.|Non-affiliated|14,325,000.00|Over 5 years|5.33%|
|Total||191,952,481.84||71.47%|

2014 Interim Report of Wuhan Boiler Company Limited (6) The amounts due from related parties
Unit: RMB Yuan
|||||
|-|-|-|-|
|Company|The relationship with the Company|Amount|Proportion|
|Wuhan Boiler (Group) Engineering &|A subsidiary of the second largest shareholder||3.22%|
|||8,649,095.32||
|Technology Co., Ltd.||||
|ALSTOM Boiler Deutschland GmbH|A subsidiary of the ultimate holding company|138,538.90|0.05%|
|ALSTOM Power Inc.|A subsidiary of the ultimate holding company|89,697,481.84|33.40%|
|Total||98,485,116.06|36.67%|

 (7) Information of accounts receivable that terminated recognition
□ Applicable√ Inapplicable
(8) If securitization is carried out on accounts receivable as the underlying assets, please list amount of assets and liabilities arising from further involvement
□ Applicable√ Inapplicable
4. Other receivables
(1)Other accounts receivable disclosed by type:
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||||Provision for doubtful||||||
||Balance||||Balance||Provision for doubtful||
||||debts||||debts||
|Category|||||||||
|||Propor||Propor||Propor||Propor|
|||||||||tion|
||Amount|tion|Amount|tion|Amount|tion|Amount||
|||||||||(%)|
|||(%)||(%)||(%)|||
|Other accounts|||||||||
|receivable that is|||||||||
|individually|||||||||
|||21.75||100.00||23.73||100.00|
|significant for which|26,673,222.30||26,673,222.30||26,673,222.30||26,673,222.30||
|||%||%||%||%|
|provisions for bad|||||||||
|debts separately|||||||||
|accrued|||||||||
|Other accounts receivable that provisions for bad debts by group|||||||||
|Group 1 (using aging||60.35||42.90||68.08||32.26|
||74,024,078.94||31,757,748.35||76,552,614.14||24,698,506.61||
|analysis)||%||%||%||%|
|Group 1 (No bad debt|19,241,237.80|15.69|||6,564,340.29|5.84%|||

2014 Interim Report of Wuhan Boiler Company Limited
||||||||||
|-|-|-|-|-|-|-|-|-|
|provision for account||%|||||||
|receivables)|||||||||
|||76.04||34.05||73.92||29.72|
|Subtotal of group|93,265,316.74||31,757,748.35||83,116,954.43||24,698,506.61||
|||%||%||%||%|
|Other accounts|||||||||
|receivable that is|||||||||
|individually||||100.00||||100.00|
||2,715,725.95|2.21%|2,715,725.95||2,636,308.95|2.34%|2,636,308.95||
|insignificant for which||||%||||%|
|bad debts provision|||||||||
|separately accrued|||||||||
|Total|122,654,264.99|--|61,146,696.60|--|112,426,485.68|--|54,008,037.86|--|

 Notes for categories of other accounts receivable:
Note: the monetary standards of provision for bad debts of the individually significant other receivables is top 5 account receivables at year end, which he impairment test is carried on individually. For significant receivables, If there are substantive evidences indicating that a receivable has been impaired, a provision for bad debts should be made; If a receivable is found not to be individually impaired, it should be included in a group of similar credit risk characteristics receivables and a collective assessment of impairment should be made. Receivables which are not significant, but still need individually recognition of bad debt provision, if there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually impairment tests.
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Bad debt|Propor||
|Item|Closing balance|||Note|
|||provision|tion||
||||100.00|Projects are suspended and the amount is not|
|Shanxi Zhenxing Group|6,722,635.46|6,722,635.46|||
||||%|expected to be recoverable|
|Shandong Luneng Material|||100.00|Projects are suspended and the amount is not|
||19,950,586.84|19,950,586.84|||
|Group Co. Limited|||%|expected to be recoverable|
|Total|26,673,222.30|26,673,222.30|--|--|

In the group, other accounts receivable that provision for bad debts by aging analysis:
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Aging of receivables|Balance||Bad debt||||
|||||||Balance|
||Amount|Proportion|provision|Amount|Proportion||

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|||(%)|||(%)||
|Within 1 year (including 1 year)|||||||
|Including:|||||||
|Within 1 year (including 1 year)|1,089,166.03|1.47%|32,674.98|4,051,432.93|5.29%|121,542.99|
|Sub-total (Within 1 year)|1,089,166.03|1.47%|32,674.98|4,051,432.93|5.29%|121,542.99|
|1-2 years(including 2 year)|490,287.61|0.66%|14,708.62|290,684.66|0.38%|8,720.54|
|2-3 years(including 3 year)|388,529.69|0.52%|23,311.77|154,400.94|0.20%|9,264.06|
|4-5 years(including 5 year)|50,461,303.27|68.17%|10,092,260.64|59,371,395.74|77.56%|11,874,279.15|
|Above 5 years|21,594,792.34|29.17%|21,594,792.34|12,684,699.87|16.57%|12,684,699.87|
|Total|74,024,078.94|--|31,757,748.35|76,552,614.14|--|24,698,506.61|

 In the group, other accounts receivable that provision for bad debts by balance percentage:
□ Applicable√ Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
□ Applicable√ Inapplicable
Individually insignificant receivables requiring impairment test, and providing provision for doubtfuldebt：:
√ Applicable□ Inapplicable
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Balance||Bad debt||Provision|Reason|
|||||provision||percentage||
|3RC Company Limited||336,604.05|336,604.05||100.00%||Bankruptcy|
|Pingtai Power DevelopmentCo.,LTD||424,514.70|424,514.70||100.00%||Project suspended|
|Henan Dengfeng XiangyangPower Co.,Ltd||32,430.77|32,430.77||100.00%||Project suspended|
|Qindao Houhai Themal PowerCo.,Ltd||518,227.71|518,227.71||100.00%||Project suspended|
|Jiangsu Wangda Paper Co.,Ltd||723,504.31|723,504.31||100%||Project suspended|
|Qingtongxia AluminiumCo.,Ltd||5,736.41|5,736.41||100%||Project suspended|
|Henan Zhongmai PowerCo.,Ltd||173,411.00|173,411.00||100.00%||Difficult to execute the court judge|
|Shanmenxia Huineng ThemalPower Co.,Ltd||143,897.00|143,897.00||100.00%||Difficult to execute the court judge|
|Shanxi Zhenxin Group Co.,Ltd||357,400.00|357,400.00||100.00%||Difficult to execute the court judge|
||Total|2,715,725.95|2,715,725.95||--||--|

2014 Interim Report of Wuhan Boiler Company Limited (2)Information of other accounts receivable reversed or recovered in the report period
Withdrawal of closing individually significant or insignificant but provisions for bad debts individually accounts receivable: None
(3) Information of other accounts receivable written off in the report period
None
(4) Other accounts receivable is due from shareholders with more than5% (including5%) of the voting shares of the Company
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name of company||Closing balance||||Opening balance|||
||Amount|||Provision for bad|Amount|||Provision for|
|||||debt||||doubtful debts|
|Wuhan Boiler (Group) Co., Ltd.|61,030,488.11||20,743,485.17||61,030,488.11||16,353,377.52||
|Total||61,030,488.11||20,743,485.17||61,030,488.11||16,353,377.52|

 (5)Nature or details of other significant accounts receivable
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Proportion of the|
|Name of company|Amount|Nature or details of the amount||
||||total (%)|
|Wuhan Boiler Group Co., Ltd.|61,030,488.11|compensation for the relocation of the old factory|49.76%|
|Total|61,030,488.11|--|49.76%|

 Note: Account receivable of RMB 61,030,488.11 from the second largest shareholder, Wuhan Boiler (Group) Co., Ltd., is mainly the compensation for the relocation of the old factory.
(6)Information of top five other accounts receivable
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Company|Relationship with the Company|Amount|Aging||Proportion of the|
||||||total (%)|
|Wuhan Boiler (Group)Co., Ltd.|The company's second-largestshareholder|61,030,488.11|50,358,753.68 for4-5 years;10,671,734.43 formore than 5 years|49.76%||
|Shandong LunengMaterial Group Co.Limited|Non-affiliated|19,950,586.84|Over 5 years|16.27%||
|Binzhou Beihai NewMaterial Co., Ltd.|Non-affiliated|11,188,034.20|Within 1 year|9.12%||
|Donghu DevelopmentZone Committee|Non-affiliated|10,774,265.00|Over 5 years|8.78%||
|Shanxi Zhengxin Group|Non-affiliated|6,722,635.47|Over 5 years|5.48%||

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|Company|Relationship with the Company|Amount|Aging|Proportion of the|
|||||total (%)|
|Co., Ltd|||||
|Total||109,666,009.62||89.41%|

 (7)Information of the amounts due from related parties
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|Name of company|The relationship with the Company|Amount|||Proportion of the total|
||||||(%)|
|ALSTOM (Beijing) Engineering &Technology Co., Ltd.|A subsidiary of the ultimate holdingcompany|14,074.73||0.01%||
|ALSTOM (Wuhan) Engineering &Technology Co., Ltd.|A subsidiary of the ultimate holdingcompany|36,200.01||0.03%||
|ALSTOM Boiler Deutschland GmbH|A subsidiary of the ultimate holdingcompany|388,529.69||0.32%||
|ALSTOM Power Inc.|A subsidiary of the ultimate holdingcompany|36,157.65||0.03%||
|ALSTOM Boiler France|A subsidiary of the ultimate holdingcompany|617,080.03||0.50%||
|ALSTOM (Switzerland) Ltd|A subsidiary of the ultimate holdingcompany|181,509.31||0.15%||
|Wuhan Boiler (Group) Co., Ltd.|Second largest shareholder|61,030,488.11||49.76%||
|Wuhan Boiler (Group) Yuntong Co., Ltd.|Subsidiary of Second largestshareholder|10,171.01||0.01%||
|Wuhan Boiler (Group) Valve Co., Ltd.|Subsidiary of Second largestshareholder|240,571.49||0.20%||
|Total|||62,554,782.03||51.01%|

 (8)Information of other accounts receivable that terminated recognition
□ Applicable√ Inapplicable
(9)If securitization is carried out on other accounts receivable as the underlying assets, please list amount of assets and liabilities arising from further involvement
□ Applicable√ Inapplicable
(10)Government subsidy recognized according to the accounts receivable during the report period
□ Applicable√ Inapplicable
2014 Interim Report of Wuhan Boiler Company Limited 5. Prepayment
(1) List by aging analysis:
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance||||Opening balance|||
|||Amount||Proportion (%)||Amount|||Proportion|
||||||||||(%)|
|Within 1 year (including 1 year)||70,764,501.60||83.35%||27,601,803.69||41.60%||
|1-2 years(including 2 years)||773,760.86||0.91%||20,893,261.63||31.49%||
|2-3 years(including 3 years)||6,323,286.62||7.45%||8,236,834.17||12.41%||
|Over 3 years||7,039,247.72||8.29%||9,621,149.44||14.50%||
||Total||84,900,796.80||--||66,353,048.93||--|

Note: Prepayment over 1 year is mainly due to the outsourcing service fee which is not settled yet.
(2) Information of the top 5 prepayment
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Name of company|||Relationship with the|Amount||Aging|Reasons|
||||Company|||||
|Vallourec Deutschland GmbH.||Non-affiliated||46,383,023.99||2014-4-30|Project has notyet completed|
|Shandong Luneng Guangda Steel StructureCo., Ltd.||Non-affiliated||6,278,800.00||2014-4-9|Project has notyet completed|
|Shanghai Songwei Steel Structure Co., Ltd.||Non-affiliated||5,413,409.34||2014-5-16|Project has notyet completed|
|Changzhi Qinghua Steel Structure Co., Ltd.||Non-affiliated||4,277,499.98||2013-1-22|Project has notyet completed|
|Zhejiang JIULI Hi-tech Metals Co., Ltd.||Non-affiliated||3,392,191.89||2014-6-24|Project has notyet completed|
||Total||||65,744,925.20|||

Note: Prepayment above are for material purchasing.
(3) Information about amount due from shareholders with more than5% (including5%) of the voting shares of the Company in prepayment
Unit: RMB Yuan
||||
|-|-|-|
|Name of entity|Closing balance|Opening balance|

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|||The amount of bad||The amount of bad|
||Book balance||Book balance||
|||debt provision||debt provision|
|ALSTOM Power Inc.|1,225,600.00||||
|ALSTOM Technical Services|||||
||||13,260,000.00||
|(Shanghai) Co., Ltd|||||
|Total|1,225,600.00||13,260,000.00||

(4) Notes of prepayment
Note: Closing balance of prepayment increased27.95% as compared to opening, which is mainly due to the increase of project material purchasing in this report period.
6. Inventory
(1) Category
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Categories||Impairment of|||Impairment of||
||Original value||Book value|Original value||Book value|
|||inventories|||inventories||
||125,533,989.90|30,487,786.60|95,046,203.30|105,746,499.12|54,992,196.80|50,754,302.32|
|Raw materials|||||||
|Constructioncontract assets|72,227,056.69|15,148,311.24|57,078,745.45|114,012,396.06|30,353,632.92|83,658,763.14|
|Total|197,761,046.59|45,636,097.84|152,124,948.75|219,758,895.18|85,345,829.72|134,413,065.46|

 (2) Provision for falling price of inventories
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|Categories|Opening balance|Increase||Decrease|||Closing balance|
|||||Reversal||Written off||
|Raw materials|54,992,196.80||||24,504,410.20||30,487,786.60|
|Construction contractassets|30,353,632.92|12,854,299.50|28,059,621.18||||15,148,311.24|
|Total|85,345,829.72|12,854,299.50|28,059,621.18||24,504,410.20||45,636,097.84|

 (3) Details of provision for falling price of inventories
Unit: RMB Yuan
2014 Interim Report of Wuhan Boiler Company Limited
|||||
|-|-|-|-|
||||Proportion of reversal of provision for|
||The bases of provision for impairment of|Reasons for||
|Item|||impairment of inventories to closing|
||inventories|reversal||
||||balance|
|1.Raw materials|According to the net realizable value|||
|2.Construction contractassets|Expected loss from contract loss|||

Note1: The write-off of the raw materials is due to the disposal of previously impaired raw materials and transferring to project costs. Note2: The construction contract assets reversal is due to release of contract loss provision as the project completion or close. 7. Fixed assets
(1) Fixed assets details
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item||Opening bookbalance||Increase in the report period|||Decrease in|Closing bookbalance||
||||||||the report|||
||||||||period|||
|1. Cost||950,164,237.91||2,090,550.15||725,824.44||951,528,963.62||
|Property and buildings||522,569,108.13||||||522,569,108.13||
|Machineries||389,074,666.38||1,464,672.42||469,653.01||390,069,685.79||
|Vehicles||1,143,874.64||||108,810.00||1,035,064.64||
|Electronic equipments and officeequipments||37,376,588.76||625,877.73||147,361.43||37,855,105.06||
|--||Opening bookbalance||Increase in thereport period|Withdrawal in thereportperiod|Decrease inthe reportperiod||Closing bookbalance in currentperiod||
|2.Accumulated depreciation||242,680,516.73||17,583,286.60||668,789.34||259,595,013.99||
|Property and buildings||54,754,247.36||6,542,352.70||||61,296,600.06||
|Machineries||157,346,881.78||9,383,106.95||412,617.91||166,317,370.82||
|Vehicles||834,559.87||49,741.07||108,810.00||775,490.94||
|Electronic equipments and officeequipments||29,744,827.72||1,608,085.88||147,361.43||31,205,552.17||
|--|||Opening book||||||Closing balance in|
||||balance||||||current period|
||3.The net book value of fixed|707,483,721.18||--||||691,933,949.63||
||assets|||||||||
|Property and buildings||467,814,860.77||--||||461,272,508.07||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
|Item||Opening bookbalance|Increase in the report period|Decrease in|Closing bookbalance|
|||||the report||
|||||period||
|Machineries||231,727,784.60|--||223,752,314.97|
|Vehicles||309,314.77|--||259,573.70|
|Electronic equipments and officeequipments||7,631,761.04|--||6,649,552.89|
|4. Impairment of fixed assets||2,167,630.33|--||2,110,595.23|
|Property and buildings||0.00|--||0.00|
|Machineries||2,048,338.23|--||1,991,303.13|
|Vehicles||61,574.28|--||61,574.28|
|Electronic equipments and officeequipments||57,717.82|--||57,717.82|
|5.Carrying amount||705,316,090.85|--||689,823,354.40|
|Property and buildings||467,814,860.77|--||461,272,508.07|
|Machineries||229,679,446.37|--||221,761,011.84|
|Vehicles||247,740.49|--||197,999.42|
||Electronic equipments and office|7,574,043.22|--||6,591,835.07|
||equipments|||||

2014 Interim Report of Wuhan Boiler Company Limited (6) Information of fixed assets failed to accomplish certification of property
□ Applicable√ Inapplicable
8. Construction in progress
(1) List of construction in progress
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Closing balance|||Opening balance|||
||Book value|Impairment|Net book value|Book value|Impairment|Net book value|
|Equipment forNew base of theCompany|1,147,993.53||1,147,993.53|2,245,077.87||2,245,077.87|
|Joint workshop III|4,535,641.50||4,535,641.50||||
|Total|5,683,635.03||5,683,635.03|2,245,077.87||2,245,077.87|

 (2) Significant changes in construction in progress
Unit: RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Includin||||
|||||||Project|||g:||||
|||||||||||Capitaliz|||
|||||Transferr||input||Capitaliz|capitaliz||Source||
|Name of|||||||Project|||ation of||Closing|
||Budget|Openingbalance|Increase|ed to|Other|percenta||ation of|ation of||of||
|project||||fixed|decrease||process|||interest||balance|
|||||assets||ge of||interest|interest||funding||
|||||||||||rate (%)|||
|||||||budget|||this||||
||||||||||period||||
|Joint||0.00|||||||||||
|worksho|||||||||||||
|p|||||||||||||
||||||||||||Self-poss||
|III(Painti|59,707,7||4,535,64|||||||||4,535,64|
|||||0.00||7.60%|7.60%|0.00|0.00||essed||
|ng and|11.00||1.50|||||||||1.50|
||||||||||||fund||
|packing|||||||||||||
|worksho|||||||||||||
|p)|||||||||||||
||59,707,7|0.00|4,535,64|||||||||4,535,64|
|Total||||0.00||--|--|0.00|0.00|--|--||
||11.00||1.50|||||||||1.50|

 Note: The closing balance of the construction in progress increased by153.16% as compared to the beginning of the period, which is mainly due to construction of new plant.
2014 Interim Report of Wuhan Boiler Company Limited (3) Impairment provision of construction in progress
None
(4) Details of procedures of significant construction in progress
||||
|-|-|-|
|Item|Project process|Notes|
|Joint workshop III( Painting and packing|||
||Under construction||
|workshop)|||

(5) Notes of construction in progress
9. Intangible assets
(1) Information
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Category||Opening balance||Increase||Decrease||Closing balance|
||Cost|151,474,945.39||51,282.05||0.00||151,526,227.44||
|1.Land use right||41,599,836.72||||||41,599,836.72||
|2.Proprietary technology||93,251,576.87||||||93,251,576.87||
|3.Software||16,623,531.80||51,282.05||||16,674,813.85||
|Accumulated amortization||77,609,032.78||2,591,778.31||||80,200,811.09||
|1.Land use right||4,719,211.42||415,946.90||||5,135,158.32||
|2.Proprietary technology||56,708,929.16||1,977,550.21||||58,686,479.37||
|3.Software||16,180,892.20||198,281.20||||16,379,173.40||
||Carrying amount of intangible assets|73,865,912.61||-2,540,496.26||||71,325,416.35||
|1.Land||36,880,625.30||-415,946.90||||36,464,678.40||
|2.Proprietary technology||36,542,647.71||-1,977,550.21||||34,565,097.50||
|3.Software||442,639.60||-146,999.15||||295,640.45||
||Impairment of intangible assets|||||||||
|1.Land use right||||||||||

2014 Interim Report of Wuhan Boiler Company Limited
|||||||||
|-|-|-|-|-|-|-|-|
||Category|Opening balance||Increase|Decrease||Closing balance|
|2.Proprietary technology||||||||
|3.Software||||||||
||Net book value of intangible assets|73,865,912.61|-2,540,496.26|||71,325,416.35||
|1.Land use right||36,880,625.30|-415,946.90|||36,464,678.40||
|2.Proprietary technology||36,542,647.71|-1,977,550.21|||34,565,097.50||
|3.Software||442,639.60|-146,999.15|||295,640.45||

Amortization was of RMB 2,591,778.31 in the report period.
(2) Development project spending
Not applicable.
10. Deferred tax assets and liabilities
(1) Deferred tax assets and liabilities are not listed as the net value after offset
Deferred tax assets and liabilities that already recognized
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Item|Closing balance||Opening balance|
||Deferred tax assets:||||
|Impairment of assets||52,358,165.78|52,533,127.61||
|Total||52,358,165.78|52,533,127.61||

List of unrecognized deferred income tax assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Item||Closing balance||Opening balance|
|Deductible temporary differences||84,463,276.85||115,006,013.88||
|Deductible losses||964,474,179.69||964,474,179.69||
||Total|1,048,937,456.54||1,079,480,193.57||

Deductible losses of unrecognized deferred income tax assets will due next year
Unit: RMB Yuan
2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
||Year|Closing balance||Opening balance|Notes|
|2014||364,372,073.45|364,372,073.45|||
|2015||138,617,290.31|138,617,290.31|||
|2016||258,201,599.91|258,201,599.91|||
|2017||169,083,295.20|169,083,295.20|||
|2018||34,199,920.82|34,199,920.82|||
|2019||0.00||||
||Total|964,474,179.69|964,474,179.69|||

List of taxable differences and deductible differences
Unit: RMB Yuan
||||
|-|-|-|
||Temporary difference||
|Item|||
||Closing balance|Opening balance|
|1. Deductible temporary difference|||
|① Provision for bad debt|192,173,756.68|177,611,247.21|
|②Impairment of inventories|15,148,311.24|30,353,632.92|
|③Impairment of fixed assets|2,110,595.23|2,167,630.33|
|Total|209,432,663.15|210,132,510.46|

(2)Deferred income tax assets and liabilities are listed as the net value after offset
List of the mutual deduction of deferred income tax assets and deferred income tax liabilities
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Deferred deductible||Deferred deductible|
||Deferred income tax||Deferred income tax||
|||or taxable temporary||or taxable temporar|
||assets and liabilities||assets and liabilities||
|Item||differences at the end||y differences at the|
||at the end of the||at the opening of the||
|||of the period||opening of the per|
||period||period||
|||||iod|
|Deferred tax assets|52,358,165.78||52,533,127.61||

2014 Interim Report of Wuhan Boiler Company Limited 11. List of provision for assets impairment
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item||Opening balance||Increase in this||Decrease in this period|||Closing balance|
|||||period||Reversal||Written off||
||1.Provision for bad|201,395,655.59|27,010,592.38||19,393,195.94||||209,013,052.03|
||debt|||||||||
||2. Impairment of|85,345,829.72|12,854,299.50||28,059,621.18||24,504,410.20||45,636,097.84|
||inventories|||||||||
||3. Impairment of|2,167,630.33|||||57,035.10||2,110,595.23|
||fixed assets|||||||||
|Total|Total|288,909,115.64|39,864,891.88||47,452,817.12||24,561,445.30||256,759,745.10|

 Note 1: Write-off of inventories impairment is caused by the disposal of previously impaired raw material and material requisition for project.
Note 2: The write-off for impairment of fixed assets is caused by the disposal of the previously impaired fixed assets.
12. Other non-current assets
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Item||Closing balance||Opening balance|
|Hedging Instrument||0.00||12,137.16||
||Total|||12,137.16||

Note: The hedging instrument decreased by100% in current period. It was mainly due to decrease of hedging loss for un-expired forward contracts in this period.
13. Short-term loan
(1)Category of short-term loans
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|

2014 Interim Report of Wuhan Boiler Company Limited
|||||
|-|-|-|-|
|Credit Loan||200,000,000.00|200,000,000.00|
|Entrusted Loan||1,350,000,000.00|1,429,200,000.00|
||Total|1,550,000,000.00|1,629,200,000.00|

Note: The entrusted loan is offered by the controlling shareholder ALSTOM (China) Investment Co., Ltd, and the maximum amount is 2.2billion RMB. The loan interest rate is10% discount of the PBoC benchmark interest rate.
(2)Short-term loans due but not repaid
None
14. Notes payable
Unit: RMB Yuan
||||
|-|-|-|
|Category|Closing amount|Opening amount|
|Bank Acceptance|66,546,750.00|0.00|
|Total|66,546,750.00|0.00|

 Note: The notes payable increased by100.00% this year.It’s mainly due to the increase of payment with bank notes in this period. 15. Accounts Payable
(1)Information
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|197,739,261.74|100,795,912.76|
|1 to 2 years (including 2 years)|20,408,745.33|27,883,016.34|
|2 to 5 years (including 5 years)|45,680,152.00|55,633,589.47|
|Over 5 years|8,747,835.08|9,483,151.44|
|Total|272,575,994.15|193,795,670.01|

 Note: The closing balance of the account payable increased by40.65% compared to the beginning of the period,it’s mainly due to the increase of raw material purchasing for Yanbu and Tai'an projects in this period.
2014 Interim Report of Wuhan Boiler Company Limited (2)The accounts payable to shareholders with more than5% (including5%) of the voting shares of the Company or related parties.
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||Company||Closing balance||Opening balance|
|ALSTOM (Switzerland) Ltd||20,215.17||795,968.75||
|Alstom Boiler Deutschland GmbH||962,850.89||949,656.90||
|ALSTOM Power Energy||10,614.19||9,247.07||
|ALSTOM Power Inc.||488,787.14||443,650.07||
|ALSTOM s.r.o||12,152.98||11,281.33||
|ALSTOM Technical Services (Shanghai)||6,705,750.00||31,966,529.92||
|Wuhan Boiler (Group) Yuntong Co., Ltd.||17,440.01||17,440.01||
|Wuhan Boiler (Group) Valve Co., Ltd.||321,360.26||321,360.26||
|Wuhan Boiler (Group) Engineering & Technology Co., Ltd.||19,125,755.73||19,125,755.73||
||Total|27,664,926.37||53,640,890.04||

(3)Notes of the large amount of accounts payable aging over one year
Note: The accounts payable aging over 1 year were mainly the retrofit processing fees of sub-contracts, which will be settled after the expiration of warranty period of boiler products.
16. Advance from customers
(1)Information
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing amount|Opening amount|
|Sales accounts payable|671,248,752.51|803,079,341.99|
|Total|671,248,752.51|803,079,341.99|

 (2)Advanced from customers from shareholders with more than5% (including5%) of the voting shares of
the Company or related parties
Unit: RMB Yuan
2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Name of company|Closing balance|Opening balance|
|ALSTOM Estonia AS|2,585,607.15|2,583,944.83|
|ALSTOM Power Inc.|576,578,527.57|593,306,874.69|
|ALSTOM Boiler Deutschland GmbH|61,242,881.45|92,987,393.31|
|ALSTOM Boiler France|6,484,866.61||
|Total|646,891,882.78|688,878,212.83|

 (3)Notes of significant advance from customers aging over 1 year
Note: Advanced from customers with aging over 1 year, were un-billed construction contract payment on projects under execution. They will be off-set after related project billings are issued.
17. Payroll payable:
Unit: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Opening balance||Increase||Decrease||Closing balance|
|1.Salary, bonus, allowance, subsidy||10,018,409.69||66,655,032.95||73,655,823.53||3,017,619.11||
|2. Social insurance||||12,800,666.95||12,800,666.95||||
|including：1)Medical insurance||||3,190,256.75||3,190,256.75||||
|2)Retirement pension||||8,246,361.46||8,246,361.46||||
|3)Unemployment insurance||||794,006.36||794,006.36||||
|4)Injury insurance premium||||290,978.23||290,978.23||||
|5)Pregnancy insurance||||279,064.15||279,064.15||||
|3. Housing fund||||3,307,525.40||3,307,525.40||||
|4.Other||37,046,124.09||2,743,257.86||2,594,890.45||37,194,491.50||
|including：1)Labour union fee andemployee education fee||884,163.86||1,600,752.88||1,267,058.04||1,217,858.70||
|2)Other||36,161,960.23||1,142,504.98||1,327,832.41||35,976,632.80||
|Total||47,064,533.78||85,506,483.16||92,358,906.33||40,212,110.61||

 The labor union fee and employee education fee is RMB 1,217,858.70, and the non-monetary benefits are RMB 000, as well as the compensation for terminating the labor contract is RMB 000.
Arrangement of the expected issue time and amount of payroll payment
Closing balance of salary, bonus, allowance, and subsidy was mainly accrued 2014 bonus which will be paid in June of next year.
2014 Interim Report of Wuhan Boiler Company Limited 18. Taxes payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|VAT|-26,590,684.79|-33,308,981.85|
|Personal income tax|183,633.13|-1,500.31|
|Stamp taxes|223,751.74|5,492.25|
|Land use taxes|391,112.01|782,224.02|
|Property Taxes||2,520,985.50|
|Total|-25,792,187.91|-30,001,780.39|

 Notes of taxed payable, if the local tax authorities permitted each branch office and factory to mutual adjust the taxes payable, should state the taxes calculation process.
19. Interest payable
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Interest payable on short-term borrowings|3,156,100.00|12,276,456.15|
|Total|3,156,100.00|12,276,456.15|

 Note: The closing balance of the interest payable decreased by74.29% compared to the beginning of the period, which is mainly due to payment of interest which was booked in prior year.
20. Dividends payable
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Reason of fail to unsettle more than|
|Name of company|Opening balance|Closing balance||
||||1 year|
|Harbin Institute Of East Force||||
||108,000.00|108,000.00|The Company is in liquidation|
|Mechanical And Electrical Company||||
|West Jiaotong University Xingyuan||||
||166,000.00|166,000.00|The Company is in liquidation|
|Power Corporation||||
|Shanghai Power Equipment Research||||
||144,000.00|144,000.00|The Company is in liquidation|
|Institute||||
|Wuhan City Environmental||||
||144,000.00|144,000.00|The Company is in liquidation|
|Protection Engineering Co., Ltd||||
|Total|562,000.00|562,000.00|--|

Note: Dividends payable is the unpaid dividend of thecompany’s subsidiary Wuhan Lanxiang Energy Environmental Protection
2014 Interim Report of Wuhan Boiler Company Limited Technology Co., Ltd.
21. Other payable
(1) Information
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Within 1 year|13,385,659.49|22,151,259.85|
|1 to 2 years (including 2 years)|8,901,560.06|3,367,243.96|
|2 to 5 years (including 5 years)|12,094,803.40|15,810,907.79|
|Total|34,382,022.95|41,329,411.60|

 (2) Other accounts payable from shareholders with more than5% (including5%) of the voting shares of the Company or related parties
Unit: RMB Yuan
||||
|-|-|-|
|Name of entity|Closing balance|Opening balance|
|Wuhan Boiler Group Co., Ltd.|974,056.13|974,056.13|
|ALSTOM (Switzerland) Ltd|877,884.08|1,342,660.11|
|ALSTOM (China) Investment Co., Ltd.|1,370,818.29|3,117,745.60|
|ALSTOM IS&T SAS|1,590,088.94|4,394,244.13|
|ALSTOM Power Ltd|87,948.88|88,376.46|
|ALSTOM Holdings France|15,066.97|21,043.34|
|Total|4,915,863.29|9,938,125.77|

 (3) Notes of the other large amount accounts payable aged more than 1 year.
None
(4) Details of the significant amount of other accounts payable
||||
|-|-|-|
|Item|Amount|The nature or content|
|ALSTOM (China) Investment Co.,Ltd|1,370,818.29|GITO service fee|
|ALSTOM IS&T SAS|1,590,088.94|ITSAS service fee|
|Wuhan Boiler (Group) Co., Ltd.|974,056.13|Service fee|
|ALSTOM (Switzerland) Ltd|877,884.08|PMX fee|
|Total|4,812,847.44||

2014 Interim Report of Wuhan Boiler Company Limited 22. Non-current liabilities
Unit: RMB Yuan
||||
|-|-|-|
|Item|Closing book balance|Opening book balance|
|Deferred income|12,175,848.00|12,314,736.00|
|Hedged items|301,291.41|79,585.63|
|Unrecognized finance cost|-7,191,954.11|-7,342,568.75|
|Total|5,285,185.30|5,051,752.88|

 Note: The unrecognized financing cost is the discount fees of employee retirement benefits in accordance with the regulations stipulated in‘EmployeeBenefits’ Accounting Standards.
Liabilities involving government subsidies
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Newly increase|Amount recorded|||Related to|
||Opening|||Other|||
|Item||subsidy of|into non-operating||Closing balance|assets/Related to|
||balance|||changes|||
|||report period|income|||income|
|Gains from land useright of corporate’s newfactory|12,314,736.00||138,888.00||12,175,848.00|Related to assets|
|Total|12,314,736.00||138,888.00||12,175,848.00||

23. Share capital
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Increase/Decrease (+/-)||||||
||Opening||||||Closing|
|||||Reserves||||
|||Issuing new||||||
||balance||Bonus shares|transferred to|Others|Subtotal|balance|
|||shares||||||
|||||shares||||
|Total shares|297,000,000.00||||||297,000,000.00|

 24. Capital surplus
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Capital premium (share|||||
||144,909,718.58|||144,909,718.58|
|capital premium)|||||
|Other capital surplus|29,749,688.88|||29,749,688.88|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Total|174,659,407.46|174,659,407.46|

 25. Surplus reserve
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Legal surplus|39,418,356.83|||39,418,356.83|
|Total|39,418,356.83|||39,418,356.83|

 26. Retained earnings
Unit: RMB Yuan
||||
|-|-|-|
|||Withdrawal or distributed|
|Item|Amount||
|||proportion|
|Opening balance of retained earnings before|-1,874,568,606.42|--|
|adjustments|||
|Opening balance of retained earnings after|-1,874,568,606.42||
|||--|
|adjustments|||
|Add: Net profit attributable to owners of the|||
||8,214,639.10|--|
|Company|||
|Closing retained earnings|-1,866,353,967.32|--|

List of adjustment of opening retained earnings:
1) RMB000 opening retained earnings was affected by retroactive adjustment conducted on Accounting Standards of Business Enterprises and its relevant new regulations.
2) RMB000 opening retained earnings was affected by changes on accounting policies.
3) RMB000 opening retained earnings was affected by correction of significant accounting errors.
4) RMB000 opening retained earnings was affected by changes in combination scope arising from same control.
5) RMB000 opening retained earnings was affected by a total of other adjustment.
Notes: as for IPO companies, chief on accumulated profits if it were enjoyed by new and original shareholders with resolutions ofshareholders’ general meeting before public offering. The Company shall chief on audited profits of dividends accounts payable that was shared by original shareholders.
27. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|Sales of main business|494,874,319.77|459,095,994.70|
|Other operating income|2,023,839.75|3,185,112.05|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Cost of sales|432,828,651.37|449,540,053.90|

 (2) Main business (Classified by industry)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Report period||Same period of last year||
|Industry|||||
||Revenue of sales|Costs of sales|Revenue of sales|Costs of sales|
|Boiler Industry|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|
|Total|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|

 (3) Main business (Classified by product)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Report period||Same period of last year||
|Product|||||
||Revenue of sales|Costs of sales|Revenue of sales|Costs of sales|
|Boiler and accessories sales|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|
|Total|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|

 (4) Main business (Classified by area)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Report period||Same period of last year||
|Area|||||
||Revenue of sales|Costs of sales|Revenue of sales|Costs of sales|
|Domestic|120,942,552.42|136,461,886.76|107,191,166.56|124,808,687.05|
|Overseas|373,931,767.35|296,094,730.63|351,904,828.14|322,841,719.14|
|Total|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|

 (5) List of the top five customers
Unit: RMB Yuan
||||
|-|-|-|
|Customers|Sales of main business|Proportion of total revenue (%)|
|Customers under same control of|323,978,084.50||
|||65.20%|
|ALSTOM|||
|Binzhou Beihai New Materials|83,170,022.05||
|||16.74%|
|Co., Ltd.|||
|PT INDAH KIAT PULP|50,304,260.19||
|||10.12%|
|&PAPER ,TBK|||
|Guodian Taian thermal power|30,480,978.65||
|||6.13%|
|Co.,Ltd|||
|China Nuclear Energy Industry|4,161,861.09||
|||0.84%|
|Corp.|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Total|492,095,206.48|99.03%|

 Notes:
28. Revenue from the construction contracts
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||||Recognized||
||||Incurred cumulative|cumulative gross||
||Contract item|Amount|||Settled amount|
||||costs|profit (Losses||
|||||presented by “-”)||
||ALSTOM Power Inc|1,834,523,770.27|940,084,188.42|143,446,893.77|-1,083,531,082.19|
||Binzhou Beihai New|||||
|||478,632,478.63|381,251,344.12|63,492,813.64|-412,820,512.81|
||Materials Co., Ltd.|||||
||Gansu Diantou|||||
|Fixed price contract|Jinchang Generating|258,974,358.97|226,431,351.31|19,468,209.03|-233,803,418.83|
||Co., Ltd|||||
||Guodian Taian|||||
||thermal power|238,120,000.00|102,460,139.48|-8,024,476.18|-70,739,181.76|
||Co.,Ltd|||||
||Alstom power|||||
|||387,794,073.77|484,724,153.26|-97,753,771.91|-386,872,458.38|
||Systems Gmbh|||||
||Others|957,094,805.59|251,382,687.91|-14,113,022.67|-232,856,799.52|
||Subtotal|4,155,139,487.23|2,386,333,864.50|106,516,645.68|-2,420,623,453.49|
|||||Recognized||
||||Incurred cumulative|cumulative gross||
|Cost plus contract|Contract item|Amount|||Settled amount|
||||costs|profit (Losses||
|||||presented by “-”)||

29. Business tax and surcharges
Unit: RMB Yuan
|||||
|-|-|-|-|
|Item|Report period|Same period of last year|Calculation and payment standard|
|Urban maintenance and construction||||
||3,672.62|||
|tax||||
|Education surtax|1,573.98|||
|Dyke fee|524.66|||
|Local education surtax|1,049.32|||
|Total|6,820.58|||

2014 Interim Report of Wuhan Boiler Company Limited 30. Selling expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|Wages and bonus|2,190,507.97|2,807,571.42|
|Social insurance|294,604.92|279,941.16|
|Travel expenses and entertainment|||
||568,057.69|990,795.60|
|expenses|||
|Housing fund|78,482.00|74,754.00|
|Depreciation|164,468.68|219,852.58|
|Rental fee|90,302.42|92,769.85|
|Energy cost|49,758.65|62,720.21|
|Consult fees|68,982.25|244,900.00|
|IT related cost|151,267.38|206,461.99|
|Office expenses|70,481.70|125,147.22|
|Tendering and Other expenses|3,935,056.40|1,355,933.17|
|Total|7,661,970.06|6,460,847.20|

 31. Administration expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|Wages and bonus|6,911,186.08|5,076,221.61|
|Social insurance|701,245.31|550,492.88|
|Housing property tax and land use right|603,378.15|2,794,834.86|
|Travel expenses and entertainment|||
||1,058,659.07|779,606.29|
|expenses|||
|Housing fund|161,038.00|166,769.00|
|Other|3,790,142.93|3,691,567.06|
|Total|13,225,649.54|13,059,491.70|

 32. Financial expenses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|Interest expenses|46,987,620.51|42,694,100.00|
|Less: Interest income|1,342,769.01|152,954.29|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Exchange net losses|-1,422,298.59|-4,493,748.02|
|Bank charges|1,160,946.10|864,362.75|
|Amortization unrecognized financingcharges|||
||150,614.64|1,288,432.66|
|Total|45,534,113.65|40,200,193.10|

 33. Gains and losses from changes in fair value
Unit: RMB Yuan
||||
|-|-|-|
|Source|Report period|Same period of last year|
|Hedging gains and losses|-1,159,562.10|-2,547,295.46|
|Total|-1,159,562.10|-2,547,295.46|
|Notes: The 54.48% increase of gains and losses from changes in fair value is mainly due to the decrease of loss arising from the|||

 un-expired hedging instrument and hedged items.
34. Impairment losses
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|I. Bad debts losses|7,617,396.44|-13,338,811.64|
|II. Inventory falling price losses|-19,157,259.05||
|Total|-11,539,862.61|-13,338,811.64|

 35. Non-operating gains
(1) Information
Unit: RMB Yuan
|||||
|-|-|-|-|
||||The amount included in the|
|Item|Report period|Same period of last year|current non-recurring gains|
||||and losses|
|Total gains from disposal of non-current|59,767.52|||
|||401,164.36|59,767.52|
|assets||||
|Including: Gains from disposal of fixed|59,767.52|||
|||401,164.36|59,767.52|
|assets||||
|Government subsidies|288,888.00|538,888.00|288,888.00|
|Indemnity and fine incomes||1,957,808.82||
|Other|1,554.58|15,305.57|1,554.58|
|Total|350,210.10|2,913,166.75||

Note: The non-operating gains decreased87.98%.It’s mainly due to the decrease of indemnity from vendors in the report period.
2014 Interim Report of Wuhan Boiler Company Limited (2) List of government subsidies recorded into current profits and losses
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Related to|Whether belong to|
|Item|Report period|Same period of last year|assets/Related to|non-recurring profit and|
||||income|loss|
|City Finance Bureau’sone business one policyincentives in 2012||400,000.00|Related to income|Yes|
|District Finance Bureau’sIndustrial Rapid Growthcontribution award in2013|150,000.0|0|Related to income|Yes|
|New factory revenueamortization of land userights|138,888.0|0 138,888.00|Related to assets|Yes|
|Total|288,888.0|0 538,888.00|||

36. Non-operating expenses
Unit: RMB Yuan
|||||
|-|-|-|-|
||||Amount record into|
|Item|Report period|Same period of last year|non-recurring profit and|
||||loss|
|Loss on disposal of non-current assets||67,734.21||
|Including: Loss on disposal of fixed assets||67,734.21||
|Other|4,544.11|1,000.00|4,544.11|
|Total|4,544.11|68,734.21|4,544.11|

 Note: The non-operating expenses decreased by93.39%.It’s mainly due to the decrease of asset disposal in the report period. 37. Income tax expense
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|Adjustment of income tax|174,961.83|3,103,374.39|
|Total|174,961.83|3,103,374.39|

 Note: The income tax expense decreased by94.36% as compared to prior period,it’s mainly due to the decrease of reduction of the
temporary deductible differences resulted from the release of contract loss provision.
2014 Interim Report of Wuhan Boiler Company Limited 38. Calculation procedure of basic earnings per share and diluted earnings per share
A．Basic earnings pershare=P÷S=8,214,639.10÷297,000,000.00=0.03
S=S0+S1+Si×Mi÷MO-Sj×Mj÷MO-Sk
In the equation above, P represents the net profit or profit after deducting extraordinary gain or loss attributable to ordinary shareholders. S represents the weighted average number of ordinary shares during the period. S0 represents the number of ordinary shares at the beginning of the period. S1 represents the number of additional ordinary shares issued on capital surplus transfer or share dividends appropriation; Si represents the number of ordinary shares issued in exchange for cash or issued as a result of the conversion of a debt instrument to ordinary shares during the period. Sj represents reduced number of ordinary shares such as shares buy back. Sk represents the number of a reverse share split. MO represents the months during the period. Mi represents the months from the following month after issuing incremental shares to the end of the period. Mj represents the months from the following month after reducing shares to the end of the period.
B. Diluted Earnings Per Share=[P+(Diluted potential common stock dividends-convert cost)/(S0＋S1＋Si×Mi÷MO–Sj×Mj÷MO–Sk+ The weighted average number of incremental ordinary shares on warrants, options, convertible debt and soon）. In the equation above, P represents the net profit or profit after deducting extraordinary gain or loss attributable to ordinary shareholders. When calculating the diluted Earnings per Share, company considered in sequence from dilutive potential ordinary shares to get the lowest earnings per share.
For business combination under the same control during the reporting period and the combing party issuing new shares as consideration, when calculating the EPS at the end of reporting period, company should treat these shares as normal outstanding shares at the beginning of combining date (Weighting coefficient is 1). When calculating the EPS during the comparing period, company should treat these shares as normal outstanding shares at the beginning of comparing period. When calculating the EPS after deducting extraordinary gain or loss at the end of reporting period, company should treat these new shares as issued one month after the combing date. When calculating the EPS after deducting extraordinary gain or loss during the comparing period, company should ignore these new shares (Weighting coefficient is 0).
For business combination under the same control at the accounting period and the combining party issuing new shares as consideration, when calculating the EPS at the accounting period or the comparing period, company should use the basic EPS method to treat these new shares.
Unlisted company purchases listed company by issuing share to become a listed company indirectly, when calculating the EPR during the reporting period:
Weighted average number of ordinary shares during the period= (Weighted average number of shares from the beginning of reporting period to the end of the month which combination happened)+ (Weighted average number of shares from the next month of the combination to the end of the reporting period)
Weighted average number of shares from the beginning of reporting period to the end of the month which combination happened= Weighted average number of shares of the acquirer (subsidiary in law)× Share exchange rate in the acquisition agreement×number of months from the beginning to the month which acquisition happens÷ number of months during the period
Weighted average number of shares from the next month of the combination to the end of the reporting period= Weighted average number of shares of the acquiree (parent in law)×number of months from the next month to the end of period÷ number of months during the period
Unlisted company purchases listed company by issuing share to become a listed company indirectly, when calculating the EPR during the comparing period:
Weighted average number of ordinary shares during the period= Weighted average number of shares of the acquirer (subsidiary in law)× Share exchange rate in the acquisition agreement.
2014 Interim Report of Wuhan Boiler Company Limited 39. Notes of Cash Flow Statement
(1) Other cash received relevant to operating activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|District Finance Bureau’s Industrial Rapid Growth contribution award in||
||150,000.00|
|2013||
|Refunded training fee|20,875.00|
|Refund of individual income tax charge fee|1,554.67|
|Total|172,429.67|

 (2) Other cash paid relevant to operating activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|IT service fees|923,778.91|
|Information Disclosure fees of listed Companies|195,632.04|
|Office expenses|1,303,074.69|
|Security fees|685,680.00|
|Insurance expenses|25,388.94|
|Meal fees|521,615.00|
|Travel and other expenses|3,782,037.27|
|Car fares|17,400.00|
|Conference expenses|45,782.30|
|Detect costs|650,502.00|
|Gas fees|1,244,496.93|
|Training expenses|6,433.31|
|Fuel costs|375,000.00|
|Cleaning Charges|13,500.00|
|Audit fee|750,000.00|
|Water charges|326,924.99|
|Commuting costs|1,773,567.00|
|General repairs & maintenances|1,401,031.37|
|Property costs|815,750.00|
|Postage expenses|127,846.05|

2014 Interim Report of Wuhan Boiler Company Limited
|||
|-|-|
|Transportation expenses|249,459.09|
|Consult fees|4,601,245.45|
|Rental expenses|1,356,589.86|
|Others|815,727.71|
|Total|22,008,462.91|

 (3) Other cash received relevant to investment activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Interests income|1,342,769.01|
|Total|1,342,769.01|

 (4) Other cash paid relevant to investment activities
Unit: RMB Yuan
|||
|-|-|
|Item|Amount|
|Bank charges|1,160,946.10|
|Total|1,160,946.10|

 (5) Other cash received relevant to financing activities
None
(6) Other cash paid relevant to financing activities
None
40. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Report period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated|||
||--|--|
|from operations：|||
|Net profit|8,191,958.99|-36,446,904.82|
|Add: Provision for assets impairments|-32,149,370.54|-18,314,348.11|
|Depreciation of fixed assets, oil-gas assets and productive|||
||17,583,286.60|20,037,873.38|
|biological assets|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Amortization of intangible assets|2,591,778.31|3,294,227.40|
|Losses/gains on disposal of property, intangible asset and|||
||-59,767.52|-333,430.15|
|other long-term assets (gains: negative)|||
|Losses/gains from variation of fair value (gains: negative)|1,159,562.10|2,547,295.46|
|Financial cost (income: negative)|44,373,167.55|40,200,193.10|
|Decrease in deferred tax assets (increase: negative)|174,961.83|3,103,374.39|
|Decrease in inventory (increase: negative)|21,997,848.59|38,828,506.15|
|Decrease in accounts receivable from operating activities|||
||83,540,433.05|160,057,049.64|
|(increase: negative)|||
|Increase in accounts payable from operating activities|||
||3,906,265.32|-462,171,842.09|
|(decrease: negative)|||
|Net cash flows generated from operating activities|151,310,124.28|-249,198,005.65|
|2. Significant investing and financing activities without|||
||--|--|
|involvement of cash receipts and payments|||
|3. Change of cash and cash equivalent:|--|--|
|Closing balance of Cash|21,900,487.66|16,683,462.09|
|Less: opening balance of cash|8,283,224.28|131,071,052.35|
|The net increase in cash and cash equivalents|13,617,263.38|-114,387,590.26|

 (2) Relevant information of acquisition or disposal of subsidiaries and other operation entities in the report period
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Report period|Same period of last year|
|I. Relevant information on acquisition of subsidiaries and|||
||--|--|
|other operation entities:|||
|II. Relevant information on disposal of subsidiaries and|||
||--|--|
|other operation entities|||

(3) Composition of cash and cash equivalents
Unit: RMB Yuan
||||
|-|-|-|
|Item|Report period|Same period of last year|
|I. Cash|21,900,487.66|8,283,224.28|
|Bank deposit on demand|21,900,487.66|8,283,224.28|
|III. Closing balance of cash and cash equivalents|21,900,487.66|8,283,224.28|

2014 Interim Report of Wuhan Boiler Company Limited 41. Notes of statement ofshareholders’ equity
Notes of issues such as name of project that made adjustment in closing balance of 2013, amount that adjusted and retroactive adjustment generated from enterprises combination under the same control:
□ Applicable√Inapplicable
VIII. Related Party Relationships and Transactions
1. Information of the parent company of the Company
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||||The||
||||||||The parent|The parent|ultimate||
|||||Legal|Nature of||||||
|Parent|Relationsh|Business|Registratio|||Registered|company's|company's|controlling|Organizati|
|||||Representa|the||||||
|company|ip|Type|n|||Capital|shareholdi|voting|party of|on Code|
|||||tive|business||||||
||||||||ng (%)|right (%)|the||
||||||||||Company||
||||||Invest in||||||
||||5F of the||||||||
||||||accordance||||||
||||Qiankun||||||||
||||||with laws||||||
||||Building,||||||||
|||Exclusivel|||||||||
||||||in the||||||
|ALSTOM|Controllin||No.6 of||||||||
|||y foreign-|||areas||||||
|(China)|g sharehol||the|Dominique||USD|||ALSTOM|71092378-|
|||owned ent|||which are||51%|51%|||
|Investment|der||Santunli|Pouliquen||60,904,400|||Holdings|2|
|||erprise|||allowed to||||||
|Co., Ltd.|||6th Street,||||||||
||||||have||||||
||||Zhaoyang||||||||
||||||foreign||||||
||||District,||||||||
||||||investment||||||
||||Beijing||||||||
||||||s etc.||||||

2. Information of subsidiaries of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Percentage|Percentageof votingright (%)||
|||||Legal||||||
|||Business|Registered||Nature of|Registered|of||Organizatio|
|Full name|Type|||representati||||||
|||type|address||the business|capital|Shareholdin||n code|
|||||ve||||||
||||||||g (%)|||
||Controllingshareholder||||Boilers,|||||
|Wuhan||||||||||
||||||energy and|||||
|Lanxiang|||No. 586 in|||||||
|||Limited|||environmen|||||
|Energy|||Wuluo|||||||
|||liability||Yang|tal|||||
|Environmen|||Road,|||20,000,000|95%|95%|73753132-4|
|||company||Guowei|protection|||||
|tal|||Wuchang|||||||
|||(domestic)|||products,|||||
|Technology|||District|||||||
||||||steel,|||||
|Co., Ltd.||||||||||
||||||energy|||||

2014 Interim Report of Wuhan Boiler Company Limited
||
|-|
|products|
|and their|
|auxiliary|
|equipment|
|technology|
|research,|
|design,|
|technology|
|consulting,|
|technology|
|services;|
|developmen|
|t of product|
|sales;|
|energy|
|engineering|
|(non-civil)|
|contracting|
|and|
|technical|
|services.|

3. Information of other related parts of the Company
||||
|-|-|-|
|Name|Relationship|Organization code|
||Subsidiary of the Company’s ultimate||
|ALSTOM Power Inc.|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Boiler France|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Boiler Deutschland GmbH|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Power Boiler GmbH|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Power Energy|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Estonia AS|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM IS&T SAS|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Power Ltd|||
||controller||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
||Subsidiary of the Company’s ultimate||
|ALSTOM s.r.o|||
||controller||
|ALSTOM Holdings|Company’s ultimate controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM Power Systems GmbH|||
||controller||
||Subsidiary of the Company’s ultimate||
|ALSTOM (Switzerland) Ltd|||
||controller||
|ALSTOM (Wuhan) Engineering|Subsidiary of the Company’s ultimate||
|||77459437-5|
|Technology Co., Ltd.|controller||
|ALSTOM (Beijing) Engineering|Subsidiary of the Company’s ultimate||
|Technology Co., Ltd.|controller||
|ALSTOM Technical Services (Shanghai)|Subsidiary of the Company’s ultimate||
|||60742241-0|
|Co., Ltd.|controller||
||The second largest shareholder of the||
|Wuhan Boiler Group Co., Ltd.||17771651-4|
||Company||
||The second largest shareholder of||
|Wuhan Boiler Group Valve Co., Ltd.||30024542-1|
||subsidiaries||
|Wuhan Boiler Group Engineering|The second largest shareholder of||
|||87769907-3|
|Technology Co., Ltd.|subsidiaries||
||The second largest shareholder of||
|Express Wuhan Boiler Group Co., Ltd.||30024726-7|
||subsidiaries||
|ALSTOM (China) Investment Co., Ltd.|The largest shareholder of the Company|71092378-2|

4. Related party transactions
(1) Goods purchased and service received
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Rule of price|Report period||Last period||
|||setting and|||||
|Related parties|Details of transaction||||||
|||decision||Proportio||Proportio|
||||Amount|n (%)|Amount|n (%)|
|||procedures|||||
|ALSTOM Technical||According to the|||||
||Purchasing raw||||||
|Services (Shanghai)||trade fair market|2,754,914.53|0.95%|32,600,000.00|12.56%|
||materials||||||
|Co., Ltd.||price|||||
|||According to the|||||
|Wuhan Boiler Group|Purchasing boiler||||||
|||trade fair market|||149,832.26|0.06%|
|Valve Co., Ltd.|accessories||||||
|||price|||||

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|||According to the|||
|Alstom Power|Purchasing raw||||
|||trade fair market|11,683.46|0.00%|
|Energy|materials||||
|||price|||

Sales and service provided
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Rule of price|Report period||Last period||
|||setting and|||||
|Related parties|Details of transaction||||||
|||decision||Proportio||Proportio|
||||Amount|n (%)|Amount|n (%)|
|||procedures|||||
|||According to the|||||
|ALSTOM Estonia|||||||
||Sales of products|trade fair market|||6,476,140.55|1.41%|
|AS|||||||
|||price|||||
|||According to the|||||
|ALSTOM Boiler|||||||
||Sales of products|trade fair market|||1,747,720.70|0.38%|
|Deutschland GmbH|||||||
|||price|||||
|ALSTOM (Wuhan)||According to the|||||
|Engineering &|Labor service|trade fair market|819,431.21|44.23%|613,248.06|69.84%|
|Technology Co., Ltd.||price|||||
|ALSTOM Technical||According to the|||||
|Services (Shanghai)|Sales of spare parts|trade fair market|348,915.00|0.07%|||
|Co., Ltd.||price|||||
|ALSTOM Power||According to the|||||
|INC.|Sales of products|trade fair market|289,738,109.43|58.55%|343,145,161.33|74.74%|
|||price|||||
|ALSTOM Boiler||According to the|||||
|France|Sales of products|trade fair market|1,565,133.39|0.32%|||
|||price|||||
|||According to the|||||
|Alstom power|||||||
||Sales of products|trade fair market|32,325,926.69|6.53%|||
|Systems Gmbh|||||||
|||price|||||
|||According to the|||||
|ALSTOM|||||||
||Sales of service|trade fair market|171,235.20|9.24%|||
|(Switzerland) Ltd|||||||
|||price|||||
|Wuhan Boiler Group||According to the|||||
|Engineering|Sales of products|trade fair market|2,187,944.16|0.44%|||
|Technology Co., Ltd||price|||||

(2) Information of related party trusteeship/contract
None
2014 Interim Report of Wuhan Boiler Company Limited (3) Information of related party lease
None
(4) Information of related party guarantee
None
(5) Related party call loan
None
(6) Information about assets transfer, debt reorganization of related parties
None
(7) Other related party transaction
Unit: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Related party||Item||Report period||Last period|
|ALSTOM (Switzerland) Ltd||Software support fees of PMX||778,170.74||964,140.00||
|ALSTOM (Switzerland) Ltd||Software Application Fees ofPDM etc.||264,907.14||193,597.75||
|ALSTOM IS&T SAS||ITSAS fees||2,417,798.45||2,701,242.97||
|ALSTOM (China) InvestmentCo., Ltd.||ITSSC service fees||1,709,997.38||1,825,682.37||
|ALSTOM (China) InvestmentCo., Ltd.||Training fees||27,950.00||||
||ALSTOM Boiler Deutschland|Project service fees||437,659.50||||
||GmbH|||||||
||Beizhong ALSTOM (Beijing)|Training fees||||10,000.00||
||electric equipment Co., Ltd.|||||||
|ALSTOM Boiler France||Training fees||||44,516.58||
|ALSTOM (Wuhan)Engineering & Technology Co.,Ltd.||Project Testing fees||||100,000.00||

Note: The controlling shareholder ALSTOM (China) Investment Co., Ltd entrusted China construction bank to grant loans to the company, with a total amount 1.35billion RMB. The loan interest rate is10% discount of PBoC benchmark interest rate. The actual interest cost incurred in the first half of 2014 is 41,220,953.84 RMB.
5. Amounts due from/to related parties
Amount due from related parties
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name|Related party|Closing balance|Opening balance|

2014 Interim Report of Wuhan Boiler Company Limited
|||||||
|-|-|-|-|-|-|
|||Book value|Bad debt provision|Book value|Bad debt provision|
||Wuhan Boiler Group|||||
|Accounts receivable|Engineering|8,649,095.32|4,968,818.28|4,854,995.28|4,854,995.28|
||Technology Co., Ltd.|||||
|Accounts receivable|ALSTOM Power Inc|89,697,481.84|2,692,154.79|115,157,792.48|3,455,587.32|
||ALSTOM Boiler|||||
|Accounts receivable||138,538.90|27,707.78|129,576.22|25,915.24|
||Deutschland GmbH|||||
||Wuhan Boiler|||||
|Other accounts receivable||61,030,488.11|20,743,485.17|61,030,488.11|16,353,377.52|
||(Group) Co., Ltd.|||||
||Wuhan Boiler Group|||||
|Other accounts receivable||240,571.49|166,668.63|240,571.49|48,114.30|
||Valve Co., Ltd.|||||
||Wuhan Boiler|||||
|Other accounts receivable|(Group) Yuntong Co.,|10,171.01|2,034.20|10,171.01|2,034.20|
||Ltd.|||||
||ALSTOM Boiler|||||
|Other accounts receivable||617,080.03|18,512.40|617,080.03|18,512.40|
||France|||||
||ALSTOM|||||
|Other accounts receivable||181,509.31|5,445.28|||
||(Switzerland) Ltd|||||
||ALSTOM Boiler|||||
|Other accounts receivable||388,529.69|23,311.78|388,420.68|16,284.65|
||Deutschland GmbH|||||
||ALSTOM (Wuhan)|||||
|Other accounts receivable|Engineering|36,200.01|1,086.00|245,749.37|7,372.48|
||Technology Co., Ltd|||||
||ALSTOM (Beijing)|||||
|Other accounts receivable|Engineering &|14,074.73|422.24|14,074.73|422.24|
||Technology Co., Ltd.|||||
|Other accounts receivable|ALSTOM Power Inc.|36,157.65|1,084.73|36,157.65|1,084.73|
||ALSTOM (Shanghai)|||||
|Prepayment|Engineering|||13,260,000.00||
||Technology Co., Ltd.|||||
|Prepayment|ALSTOM Power Inc.|1,225,600.00||||

Amount due to related parties
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name|Related party|Closing balance|Opening balance|
||Wuhan Boiler (Group)|||
|Accounts payable||17,440.01|17,440.01|
||Yuntong Co., Ltd.|||
|Accounts payable|Wuhan Boiler Group Valve|||
|||321,360.26|321,360.26|
||Co., Ltd.|||
|Accounts payable|Wuhan Boiler Group|19,125,755.73|19,125,755.73|

2014 Interim Report of Wuhan Boiler Company Limited
|||||
|-|-|-|-|
||Engineering Technology Co.,|||
||Ltd.|||
|Accounts payable|ALSTOM Technical Services|||
|||6,705,750.00|31,966,529.92|
||(Shanghai) Co., Ltd.|||
|Accounts payable|ALSTOM Boiler Deutschland|||
|||962,850.89|949,656.90|
||GmbH|||
|Accounts payable|ALSTOM Power Inc|488,787.14|443,650.07|
|Accounts payable|ALSTOM s.r.o|12,152.98|11,281.33|
|Accounts payable|ALSTOM (Switzerland) Ltd|20,215.17|795,968.75|
|Accounts payable|ALSTOM Power Energy|10,614.19|9,247.07|
|Advance from customers|ALSTOM Estonia AS|2,585,607.15|2,583,944.83|
|Advance from customers|ALSTOM Boiler Deutschland|||
|||61,242,881.45|92,987,393.31|
||GmbH|||
|Advance from customers|ALSTOM Power Inc.|576,578,527.57|593,306,874.69|
|Advance from customers|ALSTOM Boiler France|6,484,866.61||
||Wuhan Boiler (Group) Co.,|||
|Other accounts payable||974,056.13|974,056.13|
||Ltd.|||
||ALSTOM (China) Investment|||
|Other accounts payable||1,370,818.29|3,117,745.60|
||Co., Ltd.|||
|Other accounts payable|ALSTOM IS&T SAS|1,590,088.94|4,394,244.13|
|Other accounts payable|ALSTOM (Switzerland) Ltd|877,884.08|1,342,660.11|
|Other accounts payable|ALSTOM Power Ltd|87,948.88|88,376.46|
|Other accounts payable|ALSTOM Holdings|15,066.97|21,043.34|

 IX. Contingency
1. Contingent liabilities and its fiscal effect arising from unsettled lawsuit or arbitration
(1) . In November 2001, Shenzhen Wangda Caiyin Packaging Co., Ltd. and the company signed a boiler supply contract which contract No. is 2001 Dianxiao 011. In September 2003, two parities reached a supplemental agreement which stipulated that Jiangsu Wangda Paper Co., Ltd. (referred to‘JiangsuWangda’) shall perform the rights and obligations of contract. In February 2004, after the company received the advance deposit, the company organized the work of designing, production and expanding purchase. In November 2004, Jiangsu Wangda required the company to delay the delivery date and stopped paying the remaining payments,
which result in the suspension of this project until now. In April 2011, Jiangsu Wangda sent a letter to the company, in which it
required rescission of the contract and return of the advance payment. However, the company maintained, due to a large amount of
2014 Interim Report of Wuhan Boiler Company Limited cost arising from organization of design, production and expanding purchase in this project, the company agreed to terminate the contract on the basis of no refund of advance deposit and compensation of the loss, whilst Jiangsu Wangda disagreed on thecompany’s opinion. Due to the disagreement of rescission of the contract by both parties, Jiangsu Wangda took a legal action to the intermediatepeople’s court of Wuhan. Until the reporting date, this case is still in the trial of the intermediatepeople’s court of Wuhan.
The company will safeguard the legitimate rights and interests of the company through legal actions. The above matters will not be expected to have a significant impact to thecompany’s financial position.
(2) . On June 28th 2013,‘amendments to constitution of Wuhan Boiler Co.,Ltd’ (referred to‘amendments to constitution’) was approved at annual general meeting of shareholders held in 2012. The main points of modified content include: Article 74, the Power of Attorney shall be issued respectively for each shareholder meeting , shall not be accredited for long-term; the proxy shall not delegate to others; if the proxy who is a shareholder accepts the authority of five or more than five shareholders, the proxy shall collet the voting rights based on the relevant requirements of proxy solicitation system of the company and go through the relevant procedures; the proxy who is not a shareholder cannot accept the authority of five or more than five shareholders except the solicitor. Article 80, the solicitor is the independent director of the Board of Directors of the company, or the shareholder who individually or jointly holds more than 1 per cent of the issued shares of the company; the solicitor shall hire a law firm or state notarial organ to review the qualification of the solicitor, solicitation scheme, authority letters of proxy solicitation, veracity of performing proxy solicitation, validity of performing proxy solicitation and so on, then issue a legal opinion. This legal opinion or notarial certificate should be disclosed in the specified media with the report of proxy solicitation and authority letters of proxy solicitation. According to the requirements of Shenzhen Stock Exchange, Shanghai Jintiancheng law firm issued the‘legalopinion’ on these amendments. Shanghai Jintiancheng law firm maintained that these amendments did not violate the mandatory provisions of current laws and regulations, and it limited the legitimate rights and interests of minority shareholders without merit.
Zhenbiao Tan, the exchangeable-share holders of the company, believed that this amendments limited public shareholders to reasonably perform their civil rights and harmed the rights and interests of public shareholders. Thus, he maintained that the amendments was invalid and sued in thepeople’s court of Wuhan Donghu New Technology Development Zone. The court of Wuhan Donghu New Technology Development Zone adjudicates the suit that rejected accuser requests in July 2014.
The company believes that the above matters will not have a significant impact to thecompany’s financial position.
2. Contingent liabilities and its fiscal effect arising from guarantee offered to other companies
None
Other contingent liabilities and its fiscal effect:
2014 Interim Report of Wuhan Boiler Company Limited None
X. Commitments
1. Significant commitments
(1) Capital commitments
Up to 30 Jun 2014, the commitment related to purchases of long-term assets which the contract were signed but not reflected in the financial statements amounted to RMB4,442,054.47, USD157,085.00 and EUR15,071.50.
(2) Other commitments
Up to 30 Jun 2014, the unexpired bonds issued by the company amount to: performance bond RMB92,586,473.35, tender bond RMB3,200,000.00.
2. The situation of the performance of the commitment during the prior period
1. In the first half of 2014 the company had paid RMB51,080.40 for the performance of the commitment for the construction of the long-term asset.
2. In the first half of 2013 the performance guarantee RMB6,170,860.00, the tender guarantee USD3,126,923.00 had been released after all the performance of the contract.
XI. Events after the Balance Sheet Date
1. Notes of significant events after the Balance Sheet Date
None
2. Notes of profit distribution after Balance Sheet Date
None
3. Notes of other events after Balance Sheet Date
None
XII. Notes of other significant events
2014 Interim Report of Wuhan Boiler Company Limited 1. Exchange of non-monetary assets
None
2. Debt reorganization
None
3. Enterprises combination
None
4. Lease
None
5. Closing financial instruments that externally published and able to convert into shares
None
6. Assets and liabilities measured by fair value
Unit: RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Accrued fair value|||
|||Income from fair||Withdrawn||
||||change that|||
|Item|Opening amount|value change in the||impairment in|Closing amount|
||||recognized in|||
|||report period||report period||
||||equity|||
|Financial assets||||||
|Derivative financial assets|12,137.16|-12,137.16|||0.00|
|Total|12,137.16|-12,137.16|||0.00|
|Financial Liability|79,585.63|-221,705.78|||301,291.41|

 7. Main content of the pension plans and significant changes
None
8. Other
None
XIII. Notes of financial statements of parent company
2014 Interim Report of Wuhan Boiler Company Limited 1. Accounts receivable
(1) Accounts receivable
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Open balance||||
||Book balance||Provision for bad debts||Book balance||Provision for bad debts||
|Category||Propo|||||||
|||||Proporti||Proporti||Proporti|
||Amount|rtion|Amount||Amount||Amount||
|||||on (%)||on (%)||on (%)|
|||(%)|||||||
|Accounts receivable that|||||||||
|is individually significant||||100.00||||100.00|
||24,820,000.00|9.34%|24,820,000.00||24,820,000.00|6.79%|24,820,000.00||
|and provisions for bad||||%||||%|
|debts individually|||||||||
|Accounts receivable that provisions for bad debt by group|||||||||
|Accounts receivable that|||||||||
|||81.98|||||||
|provisions for bad debt by|217,804,676.87||97,571,651.66|44.80%|311,755,182.08|85.27%|104,050,713.72|33.38%|
|||%|||||||
|aging|||||||||
|||81.98|||||||
|Subtotal of group|217,804,676.87||97,571,651.66|44.80%|311,755,182.08|85.27%|104,050,713.72|33.38%|
|||%|||||||
|Accounts receivable that|||||||||
|is individually|||||||||
|insignificant but|23,042,460.00|8.67%|22,572,460.00|97.96%|29,042,460.00|7.94%|16,004,460.00|55.11%|
|provisions for bad debts|||||||||
|individually|||||||||
|Total|265,667,136.87|--|144,964,111.66|--|365,617,642.08|--|144,875,173.72|--|

 Notes:
Note: the monetary standards of provision for bad debts of the individually significant receivables is top 5 account receivables at year end, which he impairment test is carried on individually. For significant receivables, if there are substantive evidences indicating that a receivable has been impaired, a provision for bad debts should be made; if a receivable is found not to be individually impaired, it should be included in a group of similar credit risk characteristics receivables and a collective assessment of impairment should be made. Receivables which are not significant, but still need individually recognition of bad debt provision, if there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually impairment tests
Closing accounts receivable that is individually significant and provisions for bad debts individually:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Withdrawal||
|Accounts payable|Book value|Bad debt provision||Reason|
||||proportion (%)||
|||||Quality problems,|
|Dongfang Xiwang Baotou Xitu|||||
||24,820,000.00|24,820,000.00|100%|difficult to recover|
|Aluminium Co., Ltd.|||||
|||||money|
|Total|24,820,000.00|24,820,000.00|--|--|

2014 Interim Report of Wuhan Boiler Company Limited In the group, accounts receivable that provision for bad debts by aging analysis:
√ Applicable□ Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book value|||Book value|||
|Aging|||||||
|||Proporti|Bad debt provision||Proporti|Bad debt provision|
||Amount|||Amount|||
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Within 1 year|||||||
|(Including 1|116,751,385.90|53.60%|3,502,866.03|190,066,260.86|60.97%|5,701,987.83|
|year)|||||||
|Subtotal of|||||||
||116,751,385.90|53.60%|3,502,866.03|190,066,260.86|60.97%|5,701,987.83|
|within 1 year|||||||
|1 to 2 years|7,057,000.00|3.24%|211,710.00|9,038,000.00|2.90%|271,140.00|
|2 to 3 years|30,195.98|0.01%|1,811.76|2,047,451.61|0.66%|122,847.10|
|3 to 4 years|138,538.90|0.06%|27,707.78|242,676.22|0.08%|48,535.24|
|4 to 5 years||||15,568,237.30|4.99%|3,113,647.46|
|Over 5 years|93,827,556.09|43.08%|93,827,556.09|94,792,556.09|30.41%|94,792,556.09|
|Total|217,804,676.87|--|97,571,651.66|311,755,182.08|--|104,050,713.72|

 In the group, accounts receivable that provision for bad debts by balance percentage:
□Applicable√Inapplicable
In the group, accounts receivable that provision for bad debts by other methods:
□Applicable√Inapplicable
Closing accounts receivable that is individually insignificant but provisions for bad debts individually:
√Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Withdrawal||
|Accounts payable|Book value|Bad debt provision||Reason|
||||proportion (%)||
|Datang Liaoyuan Power|10,010,000.00|10,010,000.00|100.00%||
|||||Deduction for product quality issues|
|Plant|||||
||500,000.00|30,000.00|6.00%|The Company is required to bear part of the|
|Guodian Lanzhou|||||
|||||subsequent costs and thus the receivable|
|Thermal power Co., Ltd.|||||
|||||amount is not expected to be fully recoverable.|

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|Gansu Datang Xigu|11,952,460.00|11,952,460.00|100.00%||
|||||The retention money is difficult to be received|
|Thermal Power|||||
|||||due to product quality issues.|
|Company Limited|||||
|Gansu Diantou Jinchang|580,000.00|580,000.00|100.00%||
|||||The retention money is difficult to be fully|
|Electric Power|||||
|||||received.|
|Investment Co., Ltd.|||||
|Total|23,042,460.00|22,572,460.00|--|--|

(2) Information of accounts receivable reversed or recovered in the report period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||||Amount of reversed or||
||Reason for reversal or|Basis on recognition of|recovered that previously|Amount of reversed or|
|Details|||||
||recovery|provision for bad debts|recognized as provision|recovered|
||||for bad debts||
|Datang Liaoyuan Power|The receivable amount|Deduction for product|||
||||200,000.00|1,000,000.00|
|Plant|has been recovered.|quality issues|||
|Guodian Lanzhou Thermal|The receivable amount|The Company is|||
|power Co., Ltd.|has been recovered.|required to bear part of|||
|||the subsequent costs and|||
||||240,000.00|4,000,000.00|
|||thus the receivable|||
|||amount is not expected|||
|||to be fully recoverable.|||
|||The retention money is|||
|Gansu Datang West Solid|||||
||The receivable amount|difficult to be received|||
|Thermal Power Company|||1,000,000.00|1,000,000.00|
||has been recovered.|due to product quality|||
|Limited|||||
|||issues.|||
|Shuangyashan Thermal|The receivable amount|Over 5 years|||
||||175,000.00|175,000.00|
|power Co., Ltd.|was recovered.||||
|Xinjiang Huadian Changji|The receivable amount|Over 5 years|||
|Thermal power PhaseⅡCo.,|was recovered.||200,000.00|200,000.00|
|Ltd.|||||
|Shanxi Lu’an Yuwu Thermal|The receivable amount|Over 5 years|||
||||590,000.00|590,000.00|
|power Co., Ltd.|was recovered.||||
|Total|--|--|2,405,000.00|--|

Withdrawal of closing accounts receivable that is individually significant or insignificant but provisions for bad debts individually: None
(3) Information of accounts receivable that written off in the report period
None
2014 Interim Report of Wuhan Boiler Company Limited (4) Information of shareholders with more than5% (including5%) of the voting shares of the Company in account receivable in report period
□ Applicable√ Inapplicable
(5) Nature or details of other significant accounts receivable
□ Applicable√ Inapplicable
(6) Information of top five
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Name of company|Relationship|Amount|Term|Proportion (%)|
|Alstom Power Inc.|Affiliated|89,697,481.84|89,667,285.86 within 1||
||||year, 30,195.98 for 2-3|33.76%|
||||years||
|Shanxi Zhengxin Group|Non-affiliated|39,820,000.00|Over 5 years||
|||||14.99%|
|Co., Ltd.|||||
|Dongfang Xiwang|Non-affiliated|24,820,000.00|Over 5 years||
|Baotou Xitu Aluminium||||9.34%|
|Co., Ltd.|||||
|Shandong Luneng|Non-affiliated|23,290,000.00|Within 1 year||
|Materials Group Co.,||||8.77%|
|Ltd.|||||
|Henan Zhongmai Yongan|Non-affiliated|14,325,000.00|Over 5 years||
|||||5.39%|
|Power Co. Ltd.|||||
|Total|--|191,952,481.84|--|72.25%|

 (7) Information of related parties accounts receivable
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name of company|Relationship|Amount|Proportion (%)|
|Wuhan Boiler Group||||
||The second largest shareholder|||
|Engineering Technology Co.,||8,649,095.32|3.26%|
||of subsidiaries|||
|Ltd.||||
|ALSTOM Boiler Deutschland|Subsidiary of the Company’s|||
|||138,538.90|0.05%|
|GmbH|ultimate controller|||
||Subsidiary of the Company’s|||
|ALSTOM Power Inc.||89,697,481.84|33.76%|
||ultimate controller|||
|Total|--|98,485,116.06|37.07%|

2014 Interim Report of Wuhan Boiler Company Limited (8) Information of accounts receivable that terminated recognition
□ Applicable√ Inapplicable
(9) If securitization is carried out on accounts receivable as the underlying asset, please brief on the arrangement of relevant transactions.
□ Applicable√ Inapplicable
2. Other accounts payable
(1) Other accounts payable
Unit: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||||||||Provision for bad||
||Book balance||Provision for bad debts||Book balance||||
||||||||debts||
|Category|||||||||
|||Propo||Propo||Propo||Propo|
||Amount|rtion|Amount|rtion|Amount|rtion|Amount|rtion|
|||(%)||(%)||(%)||(%)|
|Other accounts receivable|||||||||
|that is individually||21.67||100.0||23.65||100.0|
||26,673,222.30||26,673,222.30||26,673,222.30||26,673,222.30||
|significant and provisions||%||0%||%||0%|
|for bad debts individually|||||||||
|Other accounts receivable that provisions for bad debts by group|||||||||
|Other accounts receivable|||||||||
|||60.49||42.68||68.19||32.13|
|that provisions for bad debts|74,462,045.97||31,778,422.27||76,923,804.99||24,716,703.91||
|||%||%||%||%|
|by aging|||||||||
|Accounts receivables not|||||||||
|||15.63|||||||
|withdrew for bad debts|19,241,237.80||||6,564,340.29|5.82%|||
|||%|||||||
|provision|||||||||
|||76.12||33.91||74.01||29.61|
|Subtotal of group|93,703,283.77||31,778,422.27||83,488,145.28||24,716,703.91||
|||%||%||%||%|
|Other accounts receivable|||||||||
|that is individually||||100.0||||100.0|
||2,715,725.95|2.21%|2,715,725.95||2,636,308.95|2.34%|2,636,308.95||
|insignificant but provisions||||0%||||0%|
|for bad debts individually|||||||||
|Total|123,092,232.02|--|61,167,370.52|--|112,797,676.53|--|54,026,235.16|--|

Note:
Description for categories of other accounts receivable:
2014 Interim Report of Wuhan Boiler Company Limited Note: the monetary standards of provision for bad debts of the individually significant other receivables is top 5 account receivables at year end, which he impairment test is carried on individually. For significant receivables, if there are substantive evidences indicating that a receivable has been impaired, a provision for bad debts should be made; if a receivable is found not to be
individually impaired, it should be included in a group of similar credit risk characteristics receivables and a collective assessment of impairment should be made. Receivables which are not significant, but still need individually recognition of bad debt provision, if there are substantive evidences shown there is a special impairment of insignificant receivables, then they need individually impairment tests.
Other closing accounts receivable that is individually significant and provisions for bad debts individually.
√ Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Amount of bad debtsprovision|Withdrawal proportion||
|Other accounts payable|Book balance|||Reason|
||||(%)||
|||||Suspension of the|
|Shanxi Zhenxing Group|||||
||6,722,635.4|6 6,722,635.46|100.00%|project, and is difficult to|
|Co., Ltd.|||||
|||||recover|
|||||Suspension of the|
|Shandong Luneng|||||
||19,950,586.8|4 19,950,586.84|100.00%|project, and is difficult to|
|Material Group Co., Ltd.|||||
|||||recover|
|Total|26,673,222.3|0 26,673,222.30|--|--|

In the group, other accounts receivable that provision for bad debts by aging analysis:
√ Applicable□Inapplicable
Unit: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing amount|||Opening amount|||
||Book balance|||Book balance|||
|Aging|||||||
|||Proporti|Bad debts provision||Proporti|Bad debts provision|
||Amount|||Amount|||
|||on (%)|||on (%)||
|Within 1 year|||||||
|Including:|--|--|--|--|--|--|
|Within 1 year|||||||
|(Including 1|1,225,236.09|1.65%|36,757.08|4,127,441.62|5.37%|123,823.25|
|year)|||||||
|Subtotal of|||||||
||1,225,236.09|1.65%|36,757.08|4,127,441.62|5.37%|123,823.25|
|within 1 year|||||||
|1 to 2 years|541,020.72|0.73%|16,230.61|350,480.96|0.46%|10,514.43|
|2 to 3 years|639,693.55|0.86%|38,381.60|389,786.80|0.51%|23,387.21|
|3 to 4 years|50,461,303.27|67.77%|10,092,260.63|59,371,395.74|77.18%|11,874,279.15|
|4 to 5 years|21,594,792.34|29.00%|21,594,792.34|12,684,699.87|16.49%|12,684,699.87|

2014 Interim Report of Wuhan Boiler Company Limited
||||||||
|-|-|-|-|-|-|-|
|Total|74,462,045.97|--|31,778,422.27|76,923,804.99|--|24,716,703.91|

 In the group, other accounts receivable that provision for bad debts by balance percentage:
□ Applicable√ Inapplicable
In the group, other accounts receivable that provision for bad debts by other methods:
□ Applicable√ Inapplicable
Other closing accounts receivable that is individually insignificant but provisions for bad debts individually:
√ Applicable□Inapplicable
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|||Amount of bad debts|Withdrawal proportion||
|Other accounts payable|Book balance|||Reason|
|||provision|(%)||
|||||The other party has filed|
|3RC Company Limited|336,604.05|336,604.05|100.00%||
|||||for bankruptcy|
|||||Suspension of the|
|Yuanping Taiyue Power|||||
||424,514.70|424,514.70|100.00%|project, and is difficult to|
|Development Co., Ltd.|||||
|||||recover|
|Henan Dengfeng Electric||||Suspension of the|
|Power Co., Ltd.|32,430.77|32,430.77|100.00%|project, and is difficult to|
|Xiangyang||||recover|
|||||Suspension of the|
|Qingdao Houhai|||||
||518,227.71|518,227.71|100.00%|project, and is difficult to|
|Thermal-power|||||
|||||recover|
|||||Suspension of the|
|Jiangsu Wanda Paper|||||
||723,504.31|723,504.31|100.00%|project, and is difficult to|
|Co., Ltd.|||||
|||||recover|
|||||Suspension of the|
|Qingtongxia Aluminum|||||
||5,736.41|5,736.41|100.00%|project, and is difficult to|
|Co., Ltd.|||||
|||||recover|
|Henan Zhongmai|||||
|||||Litigation costs, and is|
|Electric Power Co., Ltd.|173,411.00|173,411.00|100.00%||
|||||difficult to enforce|
|Mai|||||
|Sanmenxia Huineng|||||
|||||Litigation costs, and is|
|Thermal Power|143,897.00|143,897.00|100.00%||
|||||difficult to enforce|
|Company Limited|||||
|Shanxi Zhenxing Group||||Litigation costs, and is|
||357,400.00|357,400.00|100.00%||
|Co., Ltd.||||difficult to enforce|
|Total|2,715,725.95|2,715,725.95|--|--|

2014 Interim Report of Wuhan Boiler Company Limited (2) Information of other accounts receivable of reversed or recovered in report period
None.
(3) Information of written off other accounts receivable
None
(4) Information of shareholders with more than5% (including5%) of the voting shares of the Company in other accounts receivable in report period
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Closing amount||Opening amount||
|Name of company|||||
|||Provision for bad||Provision for bad|
||Book balance||Book balance||
|||debts balance||debts balance|
|Wuhan Boiler Group Co., Ltd.|61,030,488.11|20,743,485.17|61,030,488.11|16,353,377.52|
|Total|61,030,488.11|20,743,485.17|61,030,488.11|16,353,377.52|

 (5) Nature or details of significant other accounts receivable
The second largest shareholder of the Company receivable-- Wuhan Boiler Group Co., Ltd. mainly is the old factory relocation compensation, with the amount of RMB 61,030,488.11.
(6) Information of the top five
Unit: RMB Yuan
||||||
|-|-|-|-|-|
|Name of company|Relationship|Amount|Term|Proportion (%)|
||||50,358,753.68 for 4-5||
|Wuhan Boiler Group Co.,|The second largest||||
|||61,030,488.11|years, 10,671,734.43 for|49.58%|
|Ltd.|shareholder||||
||||over 5 years||
|Shandong Luneng|||||
||Non-related party|19,950,586.84|Over 5 years|16.21%|
|Material Group Co., Ltd.|||||
|Binzhou Beihai New|||||
||Non-related party|11,188,034.20|Within 1 year|9.09%|
|Material Co., Ltd.|||||
|Donghu Development|||||
||Non-related party|10,774,265.00|Over 5 years|8.75%|
|Zone Government|||||
|Shanxi Zhenxing Group|||||
||Non-related party|6,722,635.47|Over 5 years|5.46%|
|Co., Ltd.|||||
|Total|--|109,666,009.62|--|89.09%|

2014 Interim Report of Wuhan Boiler Company Limited (7) Information of other account receivable
Unit: RMB Yuan
|||||
|-|-|-|-|
|Name of company|Relationship|Amount|Proportion (%)|
|ALSTOM Beijing)|Subsidiary of the Company’s|||
|Engineering Technology Co.,|ultimate controller|14,074.73|0.01%|
|Ltd.||||
|ALSTOM (Wuhan)||||
||Subsidiary of the Company’s|||
|Engineering Technology Co.,||36,200.01|0.03%|
||ultimate controller|||
|Ltd.||||
|ALSTOM Boiler Deutschland|Subsidiary of the Company’s|||
|||388,529.69|0.32%|
|GmbH|ultimate controller|||
||Subsidiary of the Company’s|||
|ALSTOM Power Inc.||36,157.65|0.03%|
||ultimate controller|||
||Subsidiary of the Company’s|||
|ALSTOM Boiler France||617,080.03|0.50%|
||ultimate controller|||
||Subsidiary of the Company’s|||
|ALSTOM (Switzerland) Ltd||181,509.31|0.15%|
||ultimate controller|||
|Wuhan Boiler Group Co., Ltd.|The second largest shareholder|61,030,488.11|49.58%|
|Wuhan Boiler Group Yuntong|The subsidiary of the second|||
|||10,171.01|0.01%|
|Co. Ltd.|largest shareholder|||
|Wuhan Boiler Group Valve|The subsidiary of the second|||
|||240,571.49|0.20%|
|Co., Ltd.|largest shareholder|||
|Wuhan Lan Xiang Energy|Subsidiary of the company|||
|Environmental Protection||437,967.03|0.36%|
|Technology Co., Ltd.||||
|Total|--|62,992,749.06|51.19%|

 (8) Information of other accounts receivable that terminated recognition
□ Applicable√ Inapplicable
(9) If securitization is carried out with underlying of other accounts receivable, please brief on arrangement of relevant transactions.
□ Applicable√ Inapplicable
2014 Interim Report of Wuhan Boiler Company Limited 3. Long-term equity investments
Unit: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Voti|Explanatio||Withd||
|||||||||ns on||rawal||
|||||||||difference||of||
||Accou|||Incr||Shareho|l ng|s between|Provision|provis|Cash|
|||Initial||||||||||
||nting||Opening|ease/|Closing|ding|right|shareholdi|for|ion for|bonus in|
|Company||investment||||||||||
||metho||balance|decr|balance|Proporti|Prop|ng|impairmen|impair|report|
|||cost||||||||||
||d|||ease||on|ortio|proportion|t loss|ment|period|
||||||||n|and voting||loss in||
|||||||||right||report||
|||||||||proportion||period||
|Wuhan Lan||||||||||||
|Xiang Power||||||||||||
|Environmental|Cost|||||||||||
||||||24,984,50|||||||
|Protection|metho|14,000,000.00|24,984,500.00|||95%|95%|||||
||||||0.00|||||||
|Technology|d|||||||||||
|Company||||||||||||
|Limited||||||||||||
||||||24,984,50|||||||
|Total|--|14,000,000.00|24,984,500.00|||--|--|--||||
||||||0.00|||||||

4. Revenue and Cost of Sales
(1) Revenue, Cost of Sales
Unit: RMB Yuan
||||
|-|-|-|
|Item|The report period|Last period|
|Main business sales|494,874,319.77|459,095,994.70|
|Other operating income|2,023,839.75|3,185,112.05|
|Total|496,898,159.52|462,281,106.75|
|Cost of sales|432,828,651.37|449,540,053.90|

 (2) Main business (Classified by industry)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Report period||Same period of last year||
|Industry|||||
||Revenue of sales|Costs of sales|Revenue of sales|Costs of sales|

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
|Boiler industry|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|
|Total|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|

 (3) Main business (Classified by product)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Report period||Same period of last year||
|Product|||||
||Revenue of sales|Costs of sales|Revenue of sales|Costs of sales|
|Boiler and accessories sales|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|
|Total|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|

 (4) Main business (Classified by area)
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Report period||Same period of last year||
|Area|||||
||Revenue of sales|Costs of sales|Revenue of sales|Costs of sales|
|Domestic|120,942,552.42|136,461,886.76|107,191,166.56|124,808,687.05|
|Overseas|373,931,767.35|296,094,730.63|351,904,828.14|322,841,719.14|
|Total|494,874,319.77|432,556,617.39|459,095,994.70|447,650,406.19|

 (5) The revenue of sales from the top five customers
Unit: RMB Yuan
||||
|-|-|-|
||Main business revenue|Proportion of total|
|Customer|||
|||business revenue (%)|
|Customers under same control of ALSTOM|323,978,084.50|65.20%|
|Binzhou Beihai New Materials Co., Ltd.|83,170,022.05|16.74%|
|PT INDAH KIAT PULP &PAPER ,TBK|50,304,260.19|10.12%|
|Guodian Taian thermoelectric Co.,Ltd|30,480,978.65|6.13%|
|China Nuclear Energy Industry Corp.|4,161,861.09|0.84%|
|Total|492,095,206.48|99.03%|

5. Supplemental information of Cash Flow Statement
Unit: RMB Yuan
||||
|-|-|-|
|Supplemental information|Report period|Same period of last year|
|1. Reconciliation of net profit to net cash flows generated from|||
||--|--|
|operations：|||

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|Net profit|8,643,084.57|-36,286,548.80|
|Add: Provision for assets impairments|-32,536,693.68|-18,470,683.77|
|Depreciation of fixed assets, oil-gas assets and productive|||
||17,583,286.60|20,037,873.38|
|biological assets|||
|Amortization of intangible assets|2,591,778.31|3,294,227.40|
|Losses/gains on disposal of property, intangible asset and other|||
||-59,767.52|-333,430.15|
|long-term assets (gains: negative)|||
|Losses/gains from variation of fair value (gains: negative)|1,159,562.10|2,547,295.46|
|Financial cost (income: negative)|44,376,345.28|40,202,887.55|
|Decrease in deferred tax assets (increase: negative)|174,961.83|3,103,374.39|
|Decrease in inventory (increase: negative)|21,997,848.59|38,828,506.15|
|Decrease in accounts receivable from operating activities (increase:|||
||83,229,642.63|159,930,334.83|
|negative)|||
|Increase in accounts payable from operating activities (decrease:|||
||4,099,065.33|-462,071,842.09|
|negative)|||
|Net cash flows generated from operating activities|151,259,114.04|-249,218,005.65|
|2. Significant investing and financing activities without|||
||--|--|
|involvement of cash receipts and payments|||
|3. Change of cash and cash equivalent:|--|--|
|Closing balance of Cash|20,285,803.27|15,125,771.63|
|Less: opening balance of cash|6,722,513.86|129,536,056.34|
|The net increase in cash and cash equivalents|13,563,289.41|-114,410,284.71|

 6. List of assets and liabilities recorded by the assessed value under counter purchase.
None
XIV. Supplemental information
1. Notes of non-recurrent profit and loss in report period
Unit: RMB Yuan
||||
|-|-|-|
|Item|Amount|Notes|
|Loss and gains on disposal of non-current assets (Including||Gains and losses on disposal of|
||59,767.52||
|write-off part of the provision for asset impairment)||scrapped fixed assets|
|||District Finance Bureau’s|
|Governmental subsidy included in the current profits and losses(is|||
|||Industrial Rapid Growth|
|closely related with the business event, except for the|||
||288,888.00|contribution award in 2013 and|
|governmental subsidy that according to the national unity|||
|||the relevant deferred incomes of|
|standard quota or the quantitative regal assets)|||
|||the land use right in the new|

2014 Interim Report of Wuhan Boiler Company Limited
||||
|-|-|-|
|||factory zone of the Company|
|Income and expenses of the other operation except for the|||
||-2,989.53|Other|
|mentioned above|||
|Total|345,665.99|--|

Government grants recognized in the current period was recurrent profit and loss item, shall specify disclosure reason item by item.□Applicable√Inapplicable
2. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Net profits belongs to the shareholders of the listed||Net assets belongs to the shareholders of the||
||companies||listed companies||
||Current period amount|Last period amount|Closing balance|Opening balance|
|According to Chinese|8,214,639.10|-36,438,887.02|-1,355,276,203.03|-1,363,490,842.13|
|accounting standards|||||
|Items and amounts adjusted in accordance with international accounting standards|||||

(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
Unit: RMB Yuan
||||||
|-|-|-|-|-|
||Net profits belongs to the shareholders of the listed||Net assets belongs to the shareholders of the||
||companies||listed companies||
||Current period amount|Last period amount|Closing balance|Opening balance|
|According to Chinese|8,214,639.10|-36,438,887.02|-1,355,276,203.03|-1,363,490,842.13|
|accounting standards|||||
|Items and amounts adjusted in accordance with foreign accounting standards|||||

(3) Explain reasons for the differences between accounting data under domestic and overseas accounting standards
□Applicable√Inapplicable
3. Return on equity and earnings per share
Unit: RMB Yuan
2014 Interim Report of Wuhan Boiler Company Limited
|||||
|-|-|-|-|
||The weighted average ROE|EPS||
|Profit in the report period||||
||(%)|Basic EPS|Diluted EPS|
|Net profit attributable to the Company's||||
||0.60%|0.03|0.03|
|common stock shareholders||||
|Net profit attributable to shareholders of the||||
|Company's common stock after deducting|0.58%|0.03|0.03|
|non-recurring gains and losses||||

4. Particulars on the abnormal conditions of main items in the financial statements of the Company and relevant reasons
|||||||
|-|-|-|-|-|-|
||Balance sheet|Closing balance|Opening balance|Change rate|Reason|
||item|||||
|Cash and cashequivalents||23,732,263.65|10,114,897.11|134.63%|Mainly due to increase on project cash collectionthis period|
|Notesreceivable||1,500,000.00|15,000,000.00|-90.00%|Mainly due to the payment to suppliers byendorsing bank notes which were received fromcustomers.|
|Accountsreceivable||120,703,025.21|221,376,068.36|-45.48%|Mainly due to collection of accounts receivablewhich are booked in prior period|
|Constructionin progress||5,683,635.03|2,245,077.87|153.16%|Mainly due to construction of new plant.|
|Othernon-currentassets||0.00|12,137.16|-100.00%|Mainly due to decrease of hedging loss forun-expired forward contracts in this period.|
|Notes payable||66,546,750.00|0.00|100.00%|Mainly due to increase of payment with bank notesin this period.|
|Accountspayable||272,575,994.15|193,795,670.01|40.65%|Mainly due to the increase of raw materialpurchasing for Yanbu and Tai'an projects in thisperiod.|
|Interestpayable||3,156,100.00|12,276,456.15|-74.29%|Mainly due to payment of interest which wasbooked in prior year.|

||||||||||
|-|-|-|-|-|-|-|-|-|
||P&L item||Closing balance||Opening balance||Change rate|Reason|
|Income taxexpense||174,961.83||3,103,374.39||-94.36%||Mainly due to the decrease of reduction of thetemporary deductible differences resulted fromrelease of contract loss provision|

2014 Interim Report of Wuhan Boiler Company Limited
||||||
|-|-|-|-|-|
||||-87.98%||
|Non-operatingexpense|4,544.11|68,734.21|-93.39%|Mainly due to the reduce of asset disposal in thereport period|

|||||||
|-|-|-|-|-|-|
||Cash flow|Closing balance|Opening balance|Change rate|Reason|
||item|||||
|Net cash flowgeneratedfromoperatingactivities||151,310,124.28|-249,198,005.65|160.72%|Mainly due to the return of the advance receiptresulted from the change of the supply scope of theproject contract in the prior period|
|Net cash flowgeneratedfrominvestmentactivities||-2,919,453.86|-1,557,553.65|-87.44%|Mainly due to the increase of cash out paid for theconstruction of new plant|
|Net cash flowgeneratedfromfinancingactivities||-135,307,976.66|133,805,900.00|-201.12%|Mainly due to the increase in return of entrustedloans|
||Net increase|13,617,263.38|-114,387,590.26|111.90%|Mainly due to the changes of net cash flows fromoperating and financing activities|
||in cash and|||||
||cash|||||
||equivalents|||||

2014 Interim Report of Wuhan Boiler Company Limited Section X. Documents Available For Reference
I. 2014 Interim Report with signature of Legal Representative;
II. Financial statements with signatures and seals of Company Principal, Accounting Principal and AccountingDivision’s Principal.
III. Originals of all documents and announcements of the Company disclosed in the report period on the website designated by CSRC.