杭州汽轮机股份有限公司2015年半年度报告摘要 Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2015-51
Hangzhou Steam Turbine Co., Ltd.
Summary of the Semi-annual Report 2015
1 Important notes
The summary is abstract from full-text of summary of the semi-annual report, for more details information , investors should found in the full-text of summary of the semi-annual report that published on website of
Shenzhen Stock Exchange and other website appointed by CSRC.
Company Profile
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|Stock ID|Hangqilun B|Stock code||200771|
|Stock ID Changed (if any)|||||
|Stock exchange for listing|Shenzhen Stock Exchange||||
|Contact person and contact|||||
||Board secretary||Securities affairs Representative||
|manner|||||
|Name|Yu Changhan||Wang Gang||
|Tel|0571-85780432||0571-85780198||
|Fax|0571-85780433||0571-85780433||
|E-mail|ychq@htc.cn||wg@htc.cn||

II.Financial datas and change of shareholders.
（1）Financial datas
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
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|-|-|-|-|
|||Same period of last||
||Reporting period||YoY+/-（%）|
|||year||
|Operating income（RMB）|1,054,996,326.24|1,743,362,642.27|-39.48%|
|Net profit attributable to the shareholders|-10,282,333.32|196,174,851.01||
||||-105.24%|
|of the listed company（RMB）||||
|Net profit after deducting of||||
|non-recurring gain/loss attributable to the|-22,164,040.35|181,414,092.36|-112.22%|
|shareholders of listed company（RMB）||||
|Cash flow generated by business|101,821,573.29|119,786,983.72||
||||-15.00%|
|operation, net（RMB）||||
|Basic earning per share(RMB/Share)|-0.01|0.26|-103.85%|

杭州汽轮机股份有限公司2015年半年度报告摘要
|||||
|-|-|-|-|
|Diluted gains per|-0.01|0.26||
||||-103.85%|
|share(RMB/Share)(RMB/Share)||||
|Weighted average ROE(%)|-0.23%|4.53%|-4.76%|
||As at the end of the|As at the end of last||
||||YoY+/-（%）|
||reporting period|year||
|Gross assets (RMB)|7,772,378,806.31|7,552,058,947.02|2.92%|
|Net assets attributable to shareholders of|4,365,106,939.87|4,450,598,244.32||
||||-1.92%|
|the listed company （RMB）||||

（2）Statement of shares held by top 10 shareholders
In shares
|||||||||
|-|-|-|-|-|-|-|-|
|Total Number of common||||||||
|shareholders at the end of the|15,540|||||||
|reporting period||||||||
|Shareholdings of the top 10 common shareholders||||||||
|||||||Frozen or||
||||Share|||pledged||
|||Properties of|||Conditional|||
|Name of the shareholder|||proportio|Total shares||Status|Am|
|||shareholder|||shares|||
||||n %|||of|oun|
|||||||shares|t|
|Hangzhou Steam Turbine PowerGroupCo., Ltd.||State-ownedlegal person|63.64%|479,824,800|479,824,800|||
|GUOTAI JUNANSECURITIES(HONGKONG) LIMITED||Overseaslegal person|1.89%|14,284,477|0|||
|First Shangai Financial Group||Overseaslegal person|0.68%|5,095,921|0|||
|NORGES BANK||Overseaslegal person|0.57%|4,303,675|0|||
|CHINA INT'L CAPITAL CORP HONGKONG SECURITIES LTD||Overseaslegal person|0.41%|3,066,768|0|||
|GIC PRIVATE LIMITED||Overseaslegal person|0.35%|2,665,330|0|||
|VANGUARD TOTALINTERNATIONAL STOCK INDEXFUND||Overseaslegal person|0.30%|2,286,336|0|||
|BOCHK INVESTMENTFUNDS-BOCHK CHINA GOLDENDRAGON FUND||Overseaslegal person|0.30%|2,273,227|0|||
|AUSTRALIANSUPER PTY LTD||Overseaslegal person|0.28%|2,108,321|0|||
|Xia Zulin||Overseasnatural person|0.28%|2,100,000|0|||
||||（1）It is unknown to the Company if there is any|||||
||||relationship among the top 10 common share|||||
|Explanation on associated relationship among the||||||||
||||holders without restriction;|||||
|aforesaid shareholders||||||||
||||(3) Hangzhou Steam Turbine Group Co., Ltd. is not an|||||
||||“action-in-concert” party with any of other|||||

杭州汽轮机股份有限公司2015年半年度报告摘要
|||
|-|-|
||shareholders as described by the “Administration Rules|
||of Informational Disclosure about Change|
||of Shareholding Statues of PLCs”.|
|Notes to the shareholders involved in financing||
||Not applicable|
|securities (if any)||

（3）The top 10 preference share holders
Not applicable
（4）Changing of controlling shareholder and practical controller of the Company.
No change of holding shareholder in the report period.
III.Discussion and analysis by the management
1.Business overview
In the report period, the Chinese economy was still facing great downward pressure. Growth of industrial
investment were slowing down; manufacturing demands were depressed; the price index of industrial products had seen negative growth for 40 months continuously; the Company was struggling to operate and manage. Caused by the market, the steam turbine industry was obsessed by overcapacity of industry, depressed demands of the downstream industry, intensified market competition and increased operating cost and other problems. The whole industry economic indicators were still showing negative growth.
Facing with the economic situation, the Company put forward the working policy" managing strictly, grasping the market, reducing costs and controlling risk". On the one hand, it accelerated technological progress, improved the management, cost control and information technology application and made the Company keep ahead in the industrial Steam Turbine market. On the other hand, the Company actively responded to the national energy development strategy, researched on the natural gas distributed energy market deeply. Entering into the natural gas application market, extending the industry chain, promoting industrial upgrading and reducing the huge impact of macroeconomic downturn by carrying out external cooperation.
In the report period, theCompany’s operating income, operating profit, total profit ,net profit and the net profit for its shareholders were respectively RMB 1,054,996,326.24,RMB14,696,409.86，RMB18,824,453.52，
RMB 7,533,997.32 and RMB -10,282,333.32, which respectively decreased by39.48%,94.34%,92.96%,96.69% a nd105.24% year on year.
II. Analysis of main business
During the reporting period, the company generated business income in RMB1,054,996,926.24, which decreased by39.48% year on year. The operating profit was RMB 14,696,409.86, which decreased by94.34% year on year; The total profit was RMB 18,824,400, which decreased by92.96% year on year; The net profit which belongs to the listedcompany’s shareholder was RMB -10,282,300 which decreased by-105.24% year on year; The product
gross profit rates was37.08%, which decreased by1.29% year on year. The economic indicators of the first year
have decrease substantially for the following reasons:
杭州汽轮机股份有限公司2015年半年度报告摘要 (1) Impacted by the marketconditions’ during the reporting period, usersprojects’ progress that was slow and deferred led to product sales which was significantly less than its expectation, resulting in a significant decline in business income.
(2) In the product structure during the reporting period, there was a significant decline in the industrial drive area, resulting a decline in profitability and a significant decline in profits from a year earlier.
III.Progress reviewing in previous periodic report
In the report period, impacts on the Company's financial indicators of the operation failing to achieve the plan drew up at the beginning of the year, great changes of the macroeconomic environment and the continuous adjustment of the economic structure were far more than expectation and more highlighted the urgency of the current enterprise transformation and upgrading. Therefore, the Company actively promoted each key work on the development of enterprises according to the plan for the beginning of the year in the
1st
half of the year.
1.Strategic plan seeking transformation. In the report period, facing with continuous and profound impacts on industrial pattern brought by China's economic new normal, the Company actively organized special
investigations and assessments, grasped the development trend of the industry and laid out enterprises “13thfive-year-plan’’ transformation of the road. The Company would seek innovation-driven development, increase integration efforts to the industrialization and information , promote the manufacturing process as
digital ,networked and intelligent and promote the production-oriented manufacturing industry to turn to
service-oriented manufacturing industry combing with the requirements of China's industrial manufacturing 2025.Aiming at future application of the natural gas in China's vast market, the Company carried out the extensive market research, ensured to deepen the implementation of the gas turbine business strategy in the“13th
five-year-plan”period and realized the transition upgrading ofCompany’s products technology. In the report period, the Company's major construction projects on steam turbine heavy industry and R& D center had started construction one after another and the project was going smoothly.
2. Technological innovation stores kinetic energy. In the report period, the domestic first set of one hundred thousand air separation device stepped into in the final acceptance stage; the projects put into operation
successfully would have demonstration effects on the follow-up of domestic large coal chemical projects and also marked the Company's industrial Steam Turbine design and manufacturing capacity had entered advanced ranks in the world. The Company's first design of the axial exhaust steam turbine test run was successful and exported overseas markets. Company's “ NLNK series of low quality and high efficient use of waste heat of industrial steam turbine project ”wins the China Machinery Industry Science and Technology Award, the project “1000MW supercritical thermal power generating unit boiler induced-draft fan driven by steam turbine” won the 2014 Annual Zhejiang Machinery Industry Science and Technology Award; “steam waste heat, pressure recovery steam turbine” and “petrochemical industry waste heat utilization steam turbine” two major products as efficient
杭州汽轮机股份有限公司2015年半年度报告摘要 energy-saving equipment and products , identified jointly by Provincial Economic and information technology Committee, Provincial Development and Reform Commission and Provincial Department of Finance as 2014 Annual “Zhejiang manufacturing quality”. Research on the project of "800,000 T / Y ethylene plant ethylene refrigeration compressor unit" is approved by the Department of China Petroleum& Chemical Corporation supplies and equipment. In the report period, the Company filed for 2 technical patents and 8 utility model patents in the 1st half of the year and 1 technical patents and 6 utility model patents had been authorized.
3．Responding to the market breakout actively. In the report period, the industrial steam turbine market showed overall downward trend. With the exchange rate of euro and yen continuing downward, foreign products
enhanced competition in the domestic high-end market; domestic manufactures market competition continued to intensify and product prices continued to decline. Facing with the market structure limited by the internal and external, the Company actively changed the marketing organization structure; fully integrated domestic and foreign two market, industrial drive and industrial power two areas, equipment sales and supply two models; fully tapped the market potential and developed the user values deeply. The Company had achieved good results in the high power generator units, large capacity power station feed water pump and induced draft fan units and other markets in the
1st
half of the year. With the restart of domestic nuclear power projects construction, the Company got new orders for nuclear power projects this year. Through unremitting efforts, the Company successfully obtained gas turbine sets projects in Tiantie Group project. The Company was carrying out market cooperation through a variety of ways currently and strived to enter into the natural gas distributed energy and cogeneration market which is nascent at home.
4．Management upgrading promoted reform. In the report period, the Company had been carrying out and implementing process optimization and management reforms in scientific research, marketing, manufacturing, finance, management and other fields, breaking through the original management model boldly to meet with the urgent requirements of reducing costs, improving efficiency and controlling the risk .The Company accelerated the construction of information technology and implemented the PLM project which would go online. Hangzhou Steam Turbine Design - production process refinement management system construction was listed as the 2015 provincial deep integration of two socialization planning project; carrying forward centralized procurement, warehousing upgrading, financial business integration and other management projects continuously. Great efforts had been paid on controlling the risks of receivable accounts, inventory goods, the process of fulfilling the contract and the establishment of shared risk-taking mechanism.
IV. Issues involve with financial reports
(1) Statement on changes of accounting policies, accounting estimations, and accounting basis comparing with the last fiscal year
In order to adapt to the change of market environment, better prevent and control accounts receivable risks and makeCompany’s receivable accounts accord with relevant risks situation and the proportion of actual loss. The Company decided to change the accounting evaluation of provision for bad debts set up on accounts receivable, reduce and raise the percentage it in 3 years and over 3 years respectively and make devaluation
杭州汽轮机股份有限公司2015年半年度报告摘要 provision for full accounts receivable in line with cautious and objective principle.
On March 26, 2015, The company convened the 19th session of the 6th board meeting, The meeting examined and adopted Proposal on Changing Accounting Estimates of The Company. No deliberation of theshareholder’s meeting needed submitting to this change of accounting estimates.
Date of Change: Since March 26, 2015.
The proportion of the provision for bad debts summed and drew by age analysis will be changed, adopting age analysis for the receivables with provision for bad debts, which will generate the following before-and-after changes for accounting estimates change:
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|-|-|-|
|Ageing|Original Drawing Proportion of Receivables|Simulate Varying Drawing Proportion ofReceivables|
|Within 1 year|5%|5%|
|1-2 years|20%|10%|
|2-3 years|40%|30%|
|3-4 years|60%|60%|
|4-5 years|60%|80%|
|Over 5 years|60%|100%|

(2) Statement on correcting of material accounting error and retrospective adjustment
No retrospective correction of material accounting error in the report period.
(3) Statement on change of consolidation range comparing with the previous fiscal year
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|-|-|-|-|-|
||Way of acquiring||||
|Expending of consolidationrange||Date of acquiring|Capital input|Proportion|
||equity||||
|Zhejiang Zhongrun Fuel Engine|Newly||||
|||May 22,2015|10,000,000|55.55%|
|Technology Co., Ltd.|incorporated||||

No change of consolidation range in the report period.
(4) Statement of the Board and the Supervisory Committee on the Non-standardAuditors’ Report issued by the CPA.
Not applicable
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
August 25, 2015