The 3rd Quarterly Report 2017(Text) Stockcode：200771 StockID：Hangqilun B Announcement No.2017-69
Hangzhou Steam Turbine Co., Ltd.
The Third Quarterly Report 2017(Text)
The 3rd Quarterly Report 2017(Text) 1 Important notes
The Board ofDirectors，the Supervisory Committee, the directors, the supervisors, and executives of the Company guarantee that there are no significant omissions, fictitious or misleading statements carried in the Quarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Quarterly Report.
All of the directors presented the board meeting at which this Quarterly Report was examined.
Mr. Zheng Bin, The Company Leader, Mr. Pu Yangshuo, Chief financial officer and the Mr.Zhao Jiamao, the person in charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity and completeness of the financial report enclosed in the report.
The 3rd Quarterly Report 2017(Text) II.Main financial data and changes of shareholders
（1）Main accounting data and financial Index
Whether it has retroactive adjustment or re-statement on previous accounting data for accounting policy changed and accounting error correction or not.
No
|||||||
|-|-|-|-|-|-|
||As at the end of the|||||
|||As at the end of last year||Changed （%）over end of prev. year||
||reporting period|||||
|Gross assets（RMB）|11,224,208,951.10|10,550,899,708.34||6.38%||
|Net assets attributable to the shareholders of|6,278,110,666.11|6,385,346,243.23||||
|||||-1.68%||
|the listed company（RMB）||||||
|||Increase/decrease over|Between beginning of|||
||||||Changed （%）over|
||Reporting period|the same period of last|the year to the end of|||
||||||end of prev. year|
|||year（%）|the report period|||
|Operating income（RMB）|925,501,518.37|5.84%|2,589,226,220.63||15.50%|
|Net profit attributable to the shareholders of|19,997,776.79||63,993,581.17|||
|||168.75%|||206.05%|
|the listed company（RMB）||||||
|Net profit after deducting of non-recurring||||||
|gain/loss attributable to the shareholders of|9,699,270.59|126.56%|13,259,488.98||116.58%|
|listed company（RMB）||||||
|Cash flow generated by business operation,|||199,924,781.38|||
||--|--|||-44.63%|
|net（RMB）||||||
|Basic earning per share(RMB/Share)|0.027|169.23%|0.085||206.25%|
|Diluted gains per|0.027||0.085|||
|||169.23%|||206.25%|
|share(RMB/Share)(RMB/Share)||||||
|Weighted average income/asset ratio（%）|0.32%|1.02%|1.01%||2.45%|

 Items and amount of non-current gains and losses
In RMB
||||
|-|-|-|
||Amount (Year-beginning to the||
|Non-recurring gain and loss items||Notes|
||end of the report period.)||
|Non-current asset disposal gain/loss(including the write-off part for which|||
||2,724,203.46||
|assets impairment provision is made)|||
|Govemment subsidy recognized in current gain and loss(excluding those|||
|closely related to the Company’s business and granted under the state’s|3,158,099.85||
|policies)|||
|Gain/loss from change of fair value of transactional financial asset and|52,715,774.41||

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

For theCompany’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 on information Disclosure for Companies offering their securities to the public-non-recurring Gains and losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information disclosure explanatory Announcement No.1- Non–recurring gain/loss in the report period.
The 3rd Quarterly Report 2017(Text) II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period 1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recovered and the Shares Held by Top Ten Common Shareholders
In shares
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||Total preference shareholders with the|||||||||
|Total number of common shareholders at||||||||||||
||14,916||voting power recovered at the end of the|||||0||||
|the period-end||||||||||||
||||reporting period(if any)|||||||||
|Shares held by the top 10 shareholders||||||||||||
|||||||||||Pledging or||
||||||||Amount of|||||
|||||Share||||||freezing||
|||Properties of|||||tradable shares|||||
|Shareholder name||||proportion|Quantity|||||Status||
|||shareholder|||||with Conditional||||Qua|
|||||%||||||of the||
||||||||held||||ntity|
|||||||||||shares||
|Hangzhou Steam Turbine Power Group Co., Ltd.||State-ownedlegal person||63.64%|479,824,800||479,824,800|||||
|BBH A/C VANGUARD EMERGING MARKETS STOCK INDEXFUND||Foreign legalperson||0.63%|4,722,804||0|||||
|NORGES BANK||Foreign legalperson||0.57%|4,303,675||0|||||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND||Foreign legalperson||0.46%|3,454,046||0|||||
|GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED||Foreign legalperson||0.35%|2,670,262||0|||||
|ISHARES CORE MSCI EMERGING MARKETS ETF||Foreign legalperson||0.34%|2,546,600||0|||||
|China Merchants Secutities(HK)Co., Ltd.||State-ownedlegal person||0.31%|2,319,872||0|||||
|Xia Zulin||DomesticNatural person||0.28%|2,147,400||0|||||
|CHINA INT'L CAPITAL CORP HONG KONG SECURITIES LTD||Foreign legalperson||0.25%|1,905,960||0|||||
|CREDIT SUISSE AG HONG KONG BRANCH||Foreign legalperson||0.23%|1,729,759||0|||||
|Shares held by the Top 10 Shareholders of Non-restricted shares||||||||||||
|||Number of the non-restricted||||Share type||||||
|Shareholders’ Names||||||||||||
|||shares held||||Share type|||Quantity|||

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

Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have a buy-back agreement dealing in reporting period.
The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company have no buy–back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end of
the report period
Not applicable
The 3rd Quarterly Report 2017(Text) III. Significant Events
I. Changes in the principal accounting statement items and financial indications and the causes
In RMB
||||||
|-|-|-|-|-|
|Balance sheet items|Ending balance inCNY|Opening balance inCNY|Proportionof thechange|Causes of change|
|Note receivable|631,626,005.81|479,716,321.62|31.67%|Mainly due to the notes receivable received inthe current period increased|
|Advance payments|359,433,917.88|202,184,858.83|77.77%|Mainly due to current advances to rawmaterials increased|
|Note payable|195,415,523.63|143,007,715.10|36.65%|Mainly due to increase in acceptance of currentperiod|
|Advances fromcustomers|2,396,631,380.02|1,827,959,793.62|31.11%|Mainly due to the current increase in the newcontract|
|Taxes and surchargespayable|18,561,605.50|90,239,673.16|-79.43%|Mainly due to there is no value-added tax at thebeginning of this period|
|Deferred income|9,357,937.15|5,422,895.00|72.56%|Mainly due to increase in financial subsidiesreceived in the current period|
|Income statementitems|End of term|Same period of lastterm|Scale ofchange|Remarks on the change|
|Operation income|2,589,226,220.63|2,241,834,391.89|15.50%|Mainly due to this issue will further strengthenthe market development efforts, increase thenumber of sales units|
|Operation cost|1,828,109,215.33|1,487,970,320.21|22.86%|Mainly due to the current operating incomeincreased year on year, the correspondingincrease in operating costs|
|Impairment loss onassets|95,749,825.99|166,025,332.68|-42.33%|Mainly due to the accounts receivable with longaging accounts are better recovered and baddebts are reduced|
|Investment income|106,730,672.88|21,938,936.95|386.49%|Mainly due to the current sale of Long Beachshares and received the formation of HangzhouBank dividend income increased|
|Cash flow statementItems|Amount in thereporting period|Same period of theprevious year , CNY|Proportionn f thechange|Causes of change|
|Cash flow generatedby businessoperation, net|199,924,781.38|361,060,410.70|-44.63%|Mainly due to cash paid for the purchase ofgoods in the current period increased year onyear|
|Net cash flow|-60,830,933.81|-460,559,408.37|86.79%|Mainly due to the net redemption and|

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

II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions
Not applicable
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer, directors, supervisors, senior executives or other related parties in the reporting period and commitments unfinished in implementation at the end of the reporting period
Non-existence
IV. Anticipation of Business Performance of 2017
Alert of loss or significant change in net profit from the beginning of year to the end of next report period or comparing with the same period of last year, and statement of causations.
Not applicable
V. Investment in securities
Non-existence
VI. Investment in derivatives
Non-existence
VII. Registration form of such Activities as Reception, Research, Communication, Interview in the Reporting Period
|||||
|-|-|-|-|
|Reception time|Way of reception|Types of visitors|Basic index|
|August 31,|Onsite||Details are the relevant information disclosure|
|||Individual||
|2017|investigation||（http://www.cninfo.com.cn/）|

VIII. Outward Guarantee against the Regulations
Not applicable
IX. Non-operational Occupancy of theCompany’s Capital by the Controlling Shareholder and its Related Parties
Non-existence
X. Implementation of the social Responsibility of taking targeted measures to alleviate poverty in light of local Conditions.
In The report third quarter, the company neither carried out the work of taking targeted measures to alleviate
poverty in light of local conditions nor has such a plan.
The 3rd Quarterly Report 2017(Text) Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Zheng Bin
October 25, 2017