SEMIANNUAL REPORT 2014
Hangzhou Steam Turbine Co., Ltd.
August 18, 2014
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter I. Important Remarks, Table of Contents, and Glossaries
The Board of Directors, 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 Report and we will accept individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.
All of the directors presented the board meeting on which this report was examined. The meeting was held by means of onsite voting and telecommunication voting. Director Liu Guoqiang voted by telecommunication, and other directors presented the meeting onsite.
The Company will not distribute cash dividend or bonus shares, neither capitalizing of common reserves for the report period.
Chairman Mr. Nie Zhonghai, Chief Financial Officer Pu Yangshuo, and the Chief of Accounting Department Ms. Jiang Rong hereby declare: the Financial Statement in the report is guaranteed to be truthful and complete.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Table of Contents
Chapter I. Important Remarks, Table of Contents, and Glossaries.............................................................................2 Chapter II. Company Profile......................................................................................................................................5 Chapter III. Financial Highlights................................................................................................................................6 Chapter IV. Board ofDirectors’ Report......................................................................................................................8 Chapter V. Significant Events................................................................................................................................16 Chapter VI. Change of Share Equity and Shareholders...........................................................................................21 Chapter VII. The Preference Shares.........................................................................................................................23 Chapter VIII. Particulars of Directors, Supervisors, and Management....................................................................23 Chapter IX. Financial Report...................................................................................................................................24 Chapter X. Documents for Reference......................................................................................................................95
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Glossary
||||
|-|-|-|
|Terms|Defined as|Description|
|Company, the Company|Defined as|Hangzhou Steam Turbine Co., Ltd.|
|The Group, Hangqi Group|Defined as|Hangzhou Steam Turbine Power Group Co., Ltd.|
|The report period|Defined as|January 1 – June 30 2014|
|||Hangzhou Zhongneng Steam Turbine Power Co., Ltd. – the|
|Zhongneng Co.|Defined as||
|||holding subsidiary of the Company|
|||Hangzhou Steam Turbine Casting Co., Ltd. – the holding|
|Casting Co.|Defined as||
|||subsidiary of the Company|
|||Zhejiang Steam Turbine Packaged Technology Development Co.,|
|Packaged Tech. Co.|Defined as||
|||Ltd. – the holding subsidiary of the Company|
|||Hangzhou Steam Turbine Machinery Equipment Co., Ltd. - the|
|Machinery Co.|Defined as||
|||holding subsidiary of the Company|
|||Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. - the|
|Auxiliary Machine Co.|Defined as||
|||holding subsidiary of the Company|
|||Zhejiang Turbine Import & Export Co., Ltd. – the holding|
|Turbine Co.|Defined as||
|||subsidiary of the Company|
|||Hangzhou Steam Turbine Heavy Industry Co., Ltd. - the holding|
|Heavy Industry Co.|Defined as||
|||subsidiary of the Company|
|The Board of Directors|Defined as|The Board of Directors of Hangzhou Steam Turbine Co., Ltd.|
|The Supervisory Committee|Defined as|The Board of Directors of Hangzhou Steam Turbine Co., Ltd.|
|The Shareholders’ Meeting|Defined as|The Board of Directors of Hangzhou Steam Turbine Co., Ltd.|
|RMB, RMB0’000,|||
||Defined as|RMB Yuan, RMB10 thousand Yuan, RMB100 million Yuan|
|RMB000’000’000|||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter II. Company Profile
I. Company profile
|||||
|-|-|-|-|
|Stock ID|Hangqilun B|Stock Code|200771|
|Stock ID changed|None|||
|Stock Exchange Listed in|Shenzhen Stock Exchange|||
|Company Name in|杭州汽轮机股份有限公司|||
|Chinese||||
|Short form of Company||||
||Hangqilun|||
|Name in Chinese||||
|Name in English|HANGZHOU STEAM TURBINE CO.,LTD.|||
|Abbreviation in English|HTC|||
|Legal representative:|Nie Zhonghai|||

II. Contacts
||||
|-|-|-|
||Secretary of the Board|Representative of Stock Affairs|
|Name|Yu Changquan|Wang Gang|
|Address|No. 357 Shiqiao Rd. Hangzhou|No. 357 Shiqiao Rd. Hangzhou|
|Tel.|0571-85780432|0571-85780198|
|Fax.|0571-85780433|0571-85780433|
|Email.|ychq@htc.cn|wg@htc.cn|

III. Other info.
1. Contacts
No change to the registered address, office address, postal code, official website, and email address of the Company. For details please find the Annual Report 2013.
2. Information inquiry
None of the official presses, website, and place of enquiry has been changed in the report period. For details please find the Annual Report 2013.
3. Change of business registration
None of the registration date and place, the license number, tax number, organization number has been changed in the report period. For details please find Annual Report 2013.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter III. Financial Highlights
I. Main accounting data and indices
Are there any retrospective adjustment or restatement of financial information of previous year due to change of accounting policies or correcting of accounting errors?
No
|||||
|-|-|-|-|
|||Same period last||
||This report term||Increase/decrease (%)|
|||year||
|Turnover (RMB)|1,743,362,642.27|2,019,745,830.92|-13.68%|
|Net profit attributable to shareholders of the|196,174,851.01|232,926,224.38||
||||-15.78%|
|listed company (yuan)||||
|Net profit attributable to the shareholders of||||
|the listed company and after deducting of|181,414,092.36|220,033,753.07|-17.55%|
|non-recurring gain/loss(RMB)||||
|Net Cash flow generated by business|119,786,983.72|112,341,197.85||
||||6.63%|
|operation (RMB)||||
|Basic earnings per share (Yuan/share)|0.26|0.31|-16.13%|
|Diluted earnings per share (Yuan/share)|0.26|0.31|-16.13%|
|Net income on asset, weighted|4.53%|5.84%|-1.31%|
||||Changed at end of report|
||Ended this report|||
|||End of prev. year|period over end of previous|
||term|||
||||period|
|Gross Assets (RMB)|7,760,453,482.73|7,645,648,806.43|1.50%|
|Net asset attributable to owners of the PLC|4,276,885,828.98|4,230,942,110.74|1.09%|

 II. Differences in accounting information under IAS and domestic accounting standard 1. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard
In RMB Yuan
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net asset attributable to the shareholders||
||of the listed company||of the listed company||
||Current term|Amount of last term|End of term|Beginning of term|
|On Chinese Accounting|196,174,851.01|232,926,224.38|4,276,885,828.98|4,230,942,110.74|
|Standard|||||
|Items and amounts adjusted on IAS|||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 2. Differences between the net profit and net asset in the financial reports prepared under IAS and Chinese Accounting Standard
In RMB Yuan
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net asset attributable to the shareholders||
||of the listed company||of the listed company||
||Current term|Amount of last term|End of term|Beginning of term|
|On Chinese Accounting|196,174,851.01|232,926,224.38|4,276,885,828.98|4,230,942,110.74|
|Standard|||||
|Accounts and amounts adjusted according to overseas accounting standard|||||

3. Statement on the differences of accounting information on IAS and domestic accounting standard Not applicable
III. Non-recurring gain/loss items and amounts
In RMB Yuan
||||
|-|-|-|
|Items|Amount|Remarks|
|Gain/loss from disposal of non-current assets (includes|226,573.76||
|the recovered part of asset impairment provision already|||
|provided)|||
|Gains and losses included in the current period of|4,002,971.00||
|government subsidies, excluding those government|||
|grants which are closely related to normal business and|||
|in line with national policy , or in accordance with fixed|||
|standards or quantities|||
|Gain/loss from change of fair value of transactional|9,549,596.76||
|asset and 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|4,595,187.79||
|the above|||
|Less: Influenced amount of income tax|1,996,268.62||
|Influence on minority shareholders’ equity (after|1,617,302.04||
|tax)|||
|Total|14,760,758.65|--|

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.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter IV. Board ofDirectors’ Report
I. Business overview
In the
1st
half of 2014, the world economy was showing a state of uncertain and imbalance. The leading
economies was recovering but at a speed lower than expectation, while the new-coming economies were slowing down. Chinese government was slowing down the development initiatively and turned to deepening of structural adjustment. In the report period, domestic industrial investment was descending continuously, the large scale equipment business was facing severe challenge of the weakened market demand.
Under the impact of macro economy, the downstream industries were in the process of productivity reducing and inventory dumping. Investment in new productivities was obviously slowing down. Great uncertainty and delay of investment projects have brought a more complex environment to the Company.
The management was fully aware of the difficulties and challenges the Company was facing. A series of strategies were carried further, i.e. expanding of industrial chain, international and differentiation strategy, and parallel developing of production and service providing. A number of measurements were implemented regarding enhancing of technical innovation, improving of marketing system, promoting of finest quality projects,
deepening of fine management, lifting of operation efficiency, and reinforcing of risk administration. Somehow the business operation was in a steady pace.
In the report period, the Company has realized turnover of RMB1,743,362,600, a13.68% of decrease YoY; total profit of RMB267,376,000, a20.53% of decrease YoY; net profit of RMB227,702,100, a21.15% of decrease YoY; and net profit attributable to owners of the listed company of RMB196,174,900, a15.78% of decrease YoY. II. Analysis of main business
(I) General Information
Turnover of the report period has decreased by13.68% comparing with the 1st half of last year. This was mainly caused by the market environment. However benefited from modification of product composition, the gross profit has increased slightly. The total profit of the report period decreased by20.53% due to increase of impairment provisions provided and decrease of investment gains.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Change in main financial data RMB
||||||
|-|-|-|-|-|
||||Change over||
|||Same period last|||
|In RMB Yuan|This report term||same period|Cause of change|
|||year|||
||||last year||
|Turnover|1,743,362,642.27|2,019,745,830.92|-13.68%||
|Operation cost|1,074,446,850.16|1,350,033,911.16|-20.41%||
|Sales expense|68,197,974.19|92,037,454.56|-25.90%||
|Administrative|298,799,463.80|262,693,939.02|||
||||13.74%||
|expense|||||
||9,202,486.72|1,542,054.93||Mainly increase of interest paid for|
|Financial expenses|||496.77%|increased loans in the report period|
|Income tax expenses|39,673,928.67|47,681,073.69|-16.79%||
|Input to R&D|80,416,519.61|86,173,797.02|-6.68%||
|Cash flow generated|119,786,983.72|112,341,197.85|||
|by business|||6.63%||
|operation, net|||||
||-58,390,584.46|-274,500,144.16||Mainly decrease of cash received from|
|Net cash flow|||||
|||||financial products and investment in|
|generated by|||-78.73%||
|||||the report period|
|investment|||||
|Net cash flow|-173,780,354.77|-205,941,405.86|||
|generated by|||-15.62%||
|financing|||||
|Net increasing of|-111,810,766.61|-369,600,123.01||Mainly greater increase of net cash|
|cash and cash|||-69.75%|flow from investment in the report|
|equivalents||||period|
|||||Mainly there was an investment gain|
|||||from disposal of share equity of the|
|Investment income|33,668,236.76|64,696,068.76|-47.96%|Packaged Equipment Co. of the Group|
|||||in the 1st half of last year.|
|||||Mainly change of receivable account|
|||||age structure: decrease of short|
|Asset impairment|||||
||55,223,094.46|23,595,101.44|134.04%|accounts and increase of longer|
|loss|||||
|||||accounts|
|||||Mainly recording of land using rights|
|||||payment under Heavy Industry Co. –|
|Intangible assets|308,217,878.79|225,562,108.26|36.64%|subsidiary of the Company, in the|
|||||period|

No change in profit composition or sources in the report period.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (II) Progress reviewing of the business plans disclosed in previous periodic report
1. Keep on technical innovation. In the report period, the Company launched 100K class air separation project, water supply for million class power plant, water pumping steam turbine for nuclear power plant, and key unites of residual thermal turbine; accelerated development of high power low-pressure turbine, launched research of large steam turbine module, as well as the development of first organic agent residual thermal power industrial steam turbine.
TheR&D project of steam turbine for million scale ethylene equipment was awarded the 1st prize by Provincial Department of Machinery Industry, and 1st prize of China Petroleum Group for technical progress. The Steam Turbine Rotator Dynamic Research, which is a provincial project, was completed and passed in the acceptance test.
Government subsidies were awarded to the Company for its significant contributions to producing of national standard for the whole industry. A number of technical researches were conducted in the report period. 12 applications were raised for patents, and 5 patents were granted.
2. Market exploring. As impacted by the overall market situation, theCompany’s accepting of new orders was declining. However the Company has reinforced its share in the market of coal chemistry, thermal power, air conductor, and petroleum chemistry against its advantages in technologies and reputation. Winning of the contract for the 1st installation of 100K air separation device for Shenhua Ningmei is a symbol of theCompany’s invading of the field of large air separation equipment of coal chemistry industry.
Back-pressure steam turbines, theCompany’s product, are well accepted in the power plant field and under further promotion. Facing severe competition in this field, the Company was doing its best in expanding sales and lifting service value.
Along with the economic recovering of developing countries, the Company has reinforced marketing approach in overseas markets. On the other side, the Company got no new orders in the gas turbine area, which was suffering from continuous deficit of metallurgy industry. However the gas turbines in operation has contributed RMB40 million of turnover from service providing. Compressor products were in cultivating stage and not yet making steady profit.
3. Pursuing of management upgrading. In the report period, the Company has been reinforcing internal management, and increasing operational and economical efficiency. Great efforts have been paid on responsibility management regarding quality control, cost, and receivable account retrieving, etc.
Continuous inspection and evaluation were performed on key performances with reference to industrial standards. The Company has been combining resources, enhancing supply chains, and regulating process control to meet with the requirements of complex product composition, short product circle, and frequent change of market trend. Furthermore, the Company was continuously refining its production system, supply management, and business process. Information technologies were further applied in management approaches. The 1st phase of PLM project was carried out smoothly and will was expected to be put into operation recently. Great effort in energy saving resulted a6.98% of decrease in energy consuming per 100 million turnover.
4. Accelerating of major projects. As one of the major construction projects in the 12th 5-year-plan, Steam Turbine Heavy Industry has accomplished its land purchasing, primary design, technical verification, and initial assessment. It is in overall designing and planning stage at present.R&D building, the other major construction project, has finished its primary design up to present.
The Company laid great attention on assessment and implementation of these major projects, for they will be providing solid foundation for future development.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 III. Main business composition
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Gross|Change in|Change in|Change in|
||Turnover|Operation cost|profit ratio|turnover|operation cost|gross profit|
||||%|YoY|YoY|YoY|
|On Industries|||||||
|Boiler and power|||||||
||1,381,442,001.02|853,329,142.93|38.23%|-19.15%|-25.77%|5.51%|
|machine manufacture|||||||
|Casting|34,577,265.75|24,984,782.08|27.74%|-12.48%|-24.10%|11.06%|
|Petrochemical and|||||||
|other special|49,354,275.47|24,841,494.06|49.67%|27.89%|-11.03%|22.02%|
|machineries|||||||
|Other special|||||||
||273,817,208.88|168,784,575.96|38.36%|21.64%|25.01%|-1.66%|
|equipment|||||||
|Sub-total|1,739,190,751.12|1,071,939,995.03|38.37%|-13.55%|-20.33%|5.24%|
|On Products|||||||
|Industrial steam|||||||
||1,381,442,001.02|853,329,142.93|38.23%|-19.15%|-25.77%|5.51%|
|turbine|||||||
|Casting products|34,577,265.75|24,984,782.08|27.74%|-12.48%|-24.10%|11.06%|
|Auxiliary machinery|49,354,275.47|24,841,494.06|49.67%|27.89%|-11.03%|22.02%|
|Others|273,817,208.88|168,784,575.96|38.36%|21.64%|25.01%|-1.66%|
|Sub-total|1,739,190,751.12|1,071,939,995.03|38.37%|-13.55%|-20.33%|5.24%|
|On territories|||||||
|Domestic|1,655,955,142.77|1,021,853,436.23|38.29%|-7.57%|-12.44%|3.43%|
|Overseas|83,235,608.35|50,086,558.80|39.83%|-62.19%|-71.92%|20.84%|
|Sub-total|1,739,190,751.12|1,071,939,995.03|38.37%|-13.55%|-20.33%|5.24%|

 IV. Analyze of competitive edge
As the largest developing and manufacturing base of industrial steam turbine throughout the country, the Company has been in the territory with years of experiences, which provided obvious advantages from technical research to production, from marketing to customer services.
Therewasn’t any change in core business operation and competition in the report term. For details please find the Annual Report 2013.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 V. Investment
1. External equity investment
(1) External investment
No external investment in the report period.
(2) Shareholding in financial enterprises
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Original|Opening|Shareholding|Shares held at|Shareholding|Close balance of|Gain/loss in||Source|
|Name of|Type of||||||||Accounting||
|||investment cost|amount of|percentage at|the end of term|percentage at|book value|report period||of|
|companies|company||||||||subject||
|||(RMB)|shares|beginning|(shares)|closing|(RMB)|(RMB)||shares|
|Bank of|||||||||Long-term||
||Commercial|||||||||Own|
|Hangzhou||390,954,040.00|115,593,200|6.92%|138,711,840|6.92%|390,954,040.00|23,118,640.00|share equity||
||Bank|||||||||capital|
|Co., Ltd.|||||||||investment||
|Total||390,954,040.00|115,593,200|--|138,711,840|--|390,954,040.00|23,118,640.00|--|--|

 Remark: Hangzhou Bank allotted 2 shares to each 10 shares by capital reserves basing on the total capital shares of 1671416000 shares at end of 2013. Upon completion of this plan, theCompany’s shares in Hangzhou Bank have increased from 115,593,200 to 138,711,840 shares, whereas the percentage of shareholding has not changed.
(3) Stock investment
No securities investment in the report period.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 2. Trusted financing, derivate instruments, and trusted loans
(1) Trusted financing
In RMB10 thousand
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Related transaction||Amount|Started|Expired|Mean of|Principal retrieved|Impairment provision|Predicted|Actual gain/loss of|
|Title of entrustee|Relationship||Type of product|||||||||
|||or not||entrusted|on|on|reward|this period|provided (if any)|income|the period|
||||Financial instruments|||||||||
|Bohai Bank|Non-related|No||2,000||||2,000||9.11|9.11|
||||of banks|||||||||
|Changan International Trust Co.,|||Financial instruments|||||||||
||Non-related|No||4,000||||4,000||70.31|70.31|
|Ltd.|||of banks|||||||||
|Hangzhou Industrial & Commercial|||Financial instruments|||||||||
||Non-related|No||12,800||||||987.65|376.54|
|Trust Co., Ltd.|||of banks|||||||||
||||Financial instruments|||||||||
|Hangzhou Bank|Non-related|No||22,000||||17,000||114.16|91.81|
||||of banks|||||||||
||||Financial instruments|||||||||
|Ping’an Trust Co., Ltd.|Non-related|No||9,000||||9,000||48.37|48.46|
||||of banks|||||||||
||||Financial instruments|||||||||
|Ping An Bank|Non-related|No||13,000||||8,000||94.5|30.88|
||||of banks|||||||||
||||Financial instruments|||||||||
|CICB|Non-related|No||29,900||||26,100||203.06|132.08|
||||of banks|||||||||
||||Financial instruments|||||||||
|China Everbright Bank|Non-related|No||7,000||||5,000||47.68|23.75|
||||of banks|||||||||
||||Financial instruments|||||||||
|China Minsheng Bank|Non-related|No||8,000||||8,000||34.67|34.67|
||||of banks|||||||||
||||Financial instruments|||||||||
|Bank of China|Non-related|No||9,800||||6,800||20.81|19.96|
||||of banks|||||||||
||||Financial instruments|||||||||
|China CITIC Bank|Non-related|No||22,800||||18,400||157.05|117.38|
||||of banks|||||||||
|Total||||140,300|--|--|--|104,300||1,787.37|954.95|
|Resource of capital trusted||||Independent||||||||
|Accumulated principal and gains overdue||||0||||||||
|Lawsuit (if any)||||None||||||||
|Date of announcement made by the Board about approval of trusted financial service (if any)||||January 27, 2014||||||||
|Date of announcement made by the Shareholders’ Meeting about approval of trusted financial||||||||||||
|||||None||||||||
|service (if any)||||||||||||

(2) Investment of derivate instruments: no investment in derivate instruments in the report period.
(3) Trusted loans: No trusted loan in the report period.
3. Using of proceeds from share placing.
(1) Using of financing proceeds: not applicable
(2) Progress of committed projects to be financed by proceeds of financing: not applicable
(3) Change of usage of financing proceeds: no change of usage of financing proceeds in the report period.
(4) Progress of committed projects to be financed by proceeds of financing: not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 4. Analyze of main subsidiaries and affiliates
Profiles of main subsidiaries and affiliates
In RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||The|||||||||
|||||Registered||||Operation||
|Name of companies|Company|Industry|Major products or service||Gross Assets|Net asset|Turnover||Net profit|
|||||capital||||profit||
||Type|||||||||
|Zhejiang Steam Turbine Packaged Technology||Trade of packaged|Technological development of automatic control|||||||
||Subsidiaries|||51,000,000|281,068,680.12|90,775,621.46|110,761,508.75|14,771,378.58|10,829,298.50|
|Development Co., Ltd.||equipment|and instrument control|||||||
|Hangzhou Zhongneng Steam Turbine Power||||||||||
||Subsidiaries|Manufacturing|Designing and manufacturing of steam turbines|92,500,000|825,055,442.32|294,688,362.10|371,532,267.72|36,865,742.46|32,160,463.87|
|Co., Ltd.||||||||||
|Hangzhou Steam Turbine Casting Co., Ltd.|Subsidiaries|Casting|Iron and steel casting|22,000,000|419,349,922.68|172,630,821.25|152,915,382.21|8,087,718.67|7,384,123.09|
|Hangzhou Steam Turbine Machinery &||||||||||
||Subsidiaries|Manufacturing|Producing and processing of steam turbine parts|30,000,000|203,965,777.17|117,777,421.05|85,992,003.43|26,490,471.79|21,598,908.02|
|Equipment Co., Ltd.||||||||||
|Hangzhou Steam Turbine Auxiliary Machine|||Manufacturing of steam turbine auxiliary|||||||
||Subsidiaries|Manufacturing||80,000,000|442,897,674.30|245,481,424.81|225,460,305.30|26,158,708.65|20,626,167.50|
|Co., Ltd.|||machines|||||||
|Zhejiang Turbine Import & Export Co., Ltd.|Subsidiaries|Commerce & trade|International trade|20,000,000|210,545,836.35|44,968,514.33|62,173,747.89|-5,425,622.78|774,041.62|
|Hangzhou Steam Turbine Heavy Industry Co.,||||||||||
||Subsidiaries|Manufacturing|Designing and manufacturing of steam turbines|360,000,000|364,384,361.01|363,734,300.68||3,249,133.46|2,425,015.65|
|Ltd.||||||||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 5. Major projects using non-raised capital
No major projects using non-raised capital.
VI. Business performance forecast for Jan-Sept 2014
Not applicable
VII. Statement of the Board and Supervisory Committee on the “Non-standardauditors’ report” issued by the CPA on the current report period
Not applicable
VIII. Statement of the Board on the “Non-standardauditors’ report” of previous report period
Not applicable
IX. Profit distribution carried out in the report period
Particulars about the execution or adjustment of profit distribution, especially cash dividend and capitalizing of capital reserves.
The profit distribution preplan of year 2013, which was proposed by the Board, was: basing on the total capital share on December 31,2013, namely 754,010,400 shares, RMB2.00 and no bonus share(tax included) will be distributed to each 10 shares. No capitalizing of common reserves will be implemented. Totally RMB150,802,080 will be distributed. This plan was approved by theShareholders’ Meeting 2013 held on May 29, 2014.
The Company disclosed the “Announcement of Dividend Distribution for Year 2013” (Announcement No. 2014-29), by which the final trading day of B stocks were July 9, 2014; the ex-dividend day was July 10, 2014; and the shareholding registration day was July 14, 2014.
The Company entrusted China Securities Registration and Clearance Co., Ltd. Shenzhen Branch to carry out the dividend plan on July 14, 2014. Income taxes payable by the shareholders were deducted and paid by China Securities Registration and Clearance Co., Ltd. Shenzhen Branch on behalf.
|||
|-|-|
|Particulars about Cash Dividend Policy||
|Whether satisfying the requirements of the Articles of Association or resolutions of the shareholders’ meeting|Yes|
|Are standard and rate of dividend definite and clear|Yes|
|Complete decision making process|Yes|
|Independent directors fulfilling their responsibilities|Yes|
|Whether the minority shareholders were given opportunities to express their claims or opinions, whether their||
||Yes|
|legal rights are safeguarded||
|Whether the conditions and procedures of adjusting cash dividend policy legal and transparent|Yes|

 X. Profit distribution for the report period.
None of cash dividend, bonus shares, or capitalizing of common reserves will be carried out for the first half of year.
XI. Reception of investigations, communications, or interviews
|||||||
|-|-|-|-|-|-|
||||Type of|||
|Time/date|Place|Way||Visitors|Main content involved and material provided|
||||visitors|||
||||||Mid-long term development prospect,|
|May 29,|The|Field||Shareholders of||
||||Individual||competition, transferring of B stocks,|
|2014|Company|research||the Company||
||||||management incentive plans, need for financing|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter V. Significant Events
I. Administrative Position
For the report period, theCompany’s actual administration practices were complying with the requirements of the Company Law and CSRC without any differences. II. Material lawsuit
In the report period, the Company had no material lawsuits or arbitrations.
III. Questioning by the media
No media queries raised in the report period.
IV. Bankruptcy and reconstruction
No bankruptcy or capital reorganizing issues occurred in the report period.
V. Asset transactions
1. Asset acquisition: No asset acquisition occurred in the report period.
2. Disposal of assets: No disposal of assets in the report period.
3. Merger of entities: No merger of entities occurred in the report period.
VI. Implementing of share incentive scheme and influence to the Company: No share incentive scheme was implemented in the report period
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 VII. Material related transactions
1. Related transactions related to daily operation
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Ratio in||Market price of||Index of|
||||Subjects of the related|Principle of pricing the|Price of|Amount of trade||Way of||Date of||
|Related parties|Relationship|Type of trade|||||similar||similar trade||information|
||||transactions|related transactions|trade|RMB0’000||payment||disclosure||
||||||||trades||available||disclosure|
|Hangzhou Hangfa Power|Affiliate of the|Purchase of|||Market|||Bank||||
||||Generators|Fair and just||7,998.78|5.99%|||Mar 29 2014|2014-14|
|Generating Equipment Co., Ltd.|Group|goods|||price|||transfer||||
|Hangzhou Steam Turbine||||||||||||
||Affiliate of the|Purchase of|Freight, repairing, rental,||Market|||Bank||||
|Automobile Sales Service Co.,||||Fair and just||2,630.04|1.97%|||Mar 29 2014|2014-14|
||Group|labor|passenger vehicles||price|||transfer||||
|Ltd.||||||||||||
|Hangzhou Nanhua Wooden|Affiliate of the|Purchase of|||Market|||Bank||||
||||Packaging materials|Fair and just||593.74|0.44%|||Mar 29 2014|2014-14|
|Packaging Co., Ltd.|Group|goods|||price|||transfer||||
|Hangzhou Nanfangtongda Gears|Affiliate of the|Purchase of|||Market|||Bank||||
||||Gear boxes|Fair and just||862|0.65%|||Mar 29 2014|2014-14|
|Co., Ltd.|Group|goods|||price|||transfer||||
|Hangzhou Steam Turbine|Affiliate of the|Purchase of|Materials, processing,||Market|||Bank||||
|||||Fair and just||186.71|0.14%|||Mar 29 2014|2014-14|
|Industrial Co.|Group|labor|cleaning fees||price|||transfer||||
|Hangzhou Steam Turbine Power|Controlling||||Market|||Bank||||
|||Accept labor|Rental and power|Fair and just||825.92|0.62%|||Mar 29 2014|2014-14|
|Group Co., Ltd.|shareholder||||price|||transfer||||
|Employees’ technical union,|Affiliate of the|Purchase of|||Market|||Bank||||
||||Material and processing|Fair and just||59.91|0.04%|||Mar 29 2014|2014-14|
|HSTG|Group|goods|||price|||transfer||||
||Shares held by the|Purchase of|||Market|||Bank||||
|Greenesol Co. (India)|||Generators|Fair and just||2,143.38|1.61%|||Mar 29 2014|2014-14|
||Company|goods|||price|||transfer||||
|Hangzhou Steam Turbine|Affiliate of the|Sales of|||Market|||Bank||||
||||Steam turbine|Fair and just||796.31|0.46%|||Mar 29 2014|2014-14|
|Engineering Co., Ltd.|Group|goods|||price|||transfer||||
|Hangzhou Hangfa Power|Affiliate of the|Sales of|Casting parts and||Market|||Bank||||
|||||Fair and just||594.84|0.34%|||Mar 29 2014|2014-14|
|Generating Equipment Co., Ltd.|Group|goods|outsourcing||price|||transfer||||
||Shares held by the|Sales of|||Market|||Bank||||
|Greenesol Co. (India)|||Steam turbine, parts|Fair and just||25.7|0.01%|||Mar 29 2014|2014-14|
||Company|goods|||price|||transfer||||
|Hangzhou Steam Turbine||||||||||||
||Affiliate of the|Sales of|||Market|||Bank||||
|Automobile Sales Service Co.,|||Small amount materials|Fair and just||0.02|0.00%|||Mar 29 2014|2014-14|
||Group|goods|||price|||transfer||||
|Ltd.||||||||||||
|Employees’ technical union,|Affiliate of the|Service|||Market|||Bank||||
||||Co-operated process fee|Fair and just||20.62|0.01%|||Mar 29 2014|2014-14|
|HSTG|Group|providing|||price|||transfer||||
|Total||||--|--|16,737.97|--|--|--|--|--|

 2. Related transactions in terms of acquisition or disposal of assets:
No related transaction regarding asset purchase or disposal up to the end of report period.
3. Related transactions in term of collective external investment
No related transaction of joint external investment in the report period.
4. Debts and credits with related parties
Non-operational transaction of credits and debts with related parties: No.
5. Other material related transactions: No other material related transactions.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 VIII. Non-operational capital appropriation by holding shareholder and related parties
No non-operational capital appropriation by holding shareholder or related parties occurred in the report period.
IX. Material contracts and execution
1. Entrustment, contracting, and leasing issues
(1) Entrustment: No entrustment in the report period.
(2) Contracting: No contracting in the report period.
(3) Leasing: No leasing in the report period.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 2. Guarantees
In RMB10 thousand
||||||||||
|-|-|-|-|-|-|-|-|-|
|External Guarantee (Exclude controlled subsidiaries)|||||||||
||Amount of||Actual date of||||||
|||Amount of||Actual amount of|||Completed|Related|
|Guarantee provided to|guarantee and date||occurring (signing date||Type of guarantee|Term|||
|||the guarantee||guarantee|||or not|guarantee|
||of disclosure||of agreements||||||
|||||||1 year upon|||
|Zhongkong Science &|||||||||
|||||||date of|||
|Technology Group|April 10, 2014|300|April 10, 2014|300|Pledge||No|No|
|||||||entering the|||
|Co., Ltd.|||||||||
|||||||contract|||
|Total of external guarantee approved in the||||Total of external guarantee actually occurred in the report term|||||
|||300||||0|||
|report term (A1)||||(A2)|||||
|Total of external guarantee approved as of||||Total of external guarantee actually occurred as of end of report|||||
|||300||||0|||
|end of report term (A3)||||term (A4)|||||
|Guarantee provided to controlled subsidiaries|||||||||
||Amount of||Actual date of||||||
|||Amount of||Actual amount of|||Completed|Related|
|Guarantee provided to|guarantee and date||occurring (signing date||Type of guarantee|Term|||
|||the guarantee||guarantee|||or not|guarantee|
||of disclosure||of agreements||||||
|Total of guarantee to subsidiaries approved||||Total of guarantee to subsidiaries actually occurred in the report|||||
|||0||||0|||
|in the report term (B1)||||term (B2)|||||
|Total of guarantee to subsidiaries approved||||Total of balance of guarantee actually provided to the subsidiaries|||||
|||0||||0|||
|as of the report term (B3)||||as of end of report term (B4)|||||
|Total of guarantee provided by the Company (i.e. total of the above two items)|||||||||
|Total of guarantee approved in the report|||||||||
|||300||Total of guarantee occurred in the report term (A2+B2)||0|||
|term (A1+B1)|||||||||
|Total of guarantee approved as of end of|||||||||
|||300||Total of guarantee occurred as of the end of report term（A4+B4）||0|||
|report term (A3+B3)|||||||||
|In which:|||||||||
|Guarantees provided to the shareholders, substantial controllers and the related|||||||||
|||||0|||||
|parties (C)|||||||||
|Guarantee provided directly or indirectly to objects with over 70% of liability on|||||||||
|||||0|||||
|asset ratio (D)|||||||||
|The part of total amount of guarantee exceeded 50% of net asset (E)||||0|||||
|Total of the above 3 (C+D+E)||||0|||||
|Statement on the possible joint liabilities on the guarantees not due yet||||None|||||
|Remarks on providing of external guarantees against the procedures||||None|||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (1) Illegal providing of external guarantees
No illegal providing of external guarantees in the report period.
3. Other material contracts
No other material contract in the report period.
4. Other material trades
No other material trade in the report period.
X. Commitment issues by shareholders with5% or over of shares in the report period or carried over to the report period from previous periods
No commitment issues by shareholders with5% or over of shares in the report period or carried over to the report period from previous periods
XI. Engaging and dismissing of CPAs
Whether the Interim Report was audited or not
XII. Punishment and improvement
No punishment or improving approach in the report period.
XIII. Disclosure of illegal action causing risk of delisting.
No such illegal action causes risk of delisting.
XIV. Statement on other material issues
No other material issues to be stated for the report period.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter VI. Change of Share Equity and Shareholders I. Statement of change in shares
In shares
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before the change||Changed Currently (+,-)|||||After the change||
||||Issuing of|Bonus|Transferred from|||||
||Amount|Proportion||||Others|Sub-total|Amount|Proportion|
||||new shares|shares|reserves|||||
|I. Shares with trade||||||||||
||479,905,341|63.65%|0|0|0|0|0|479,905,341|63.65%|
|restriction conditions||||||||||
|1. State-owned shares|479,824,800|63.64%|0|0|0|0|0|479,824,800|63.64%|
|2. Other domestic shares|80,541|0.01%||||||80,541|0.01%|
|Domestic natural||||||||||
||80,541|0.01%|0|0|0|0|0|80,541|0.01%|
|person shares||||||||||
|II. Shares without trading||||||||||
||274,105,059|36.35%|0|0|0|0|0|274,105,059|36.35%|
|limited conditions||||||||||
|Foreign shares listed at||||||||||
||274,105,059|36.35%|0|0|0|0|0|274,105,059|36.35%|
|home||||||||||
|III. Total of capital shares|754,010,400|100.00%|0|0|0|0|0|754,010,400|100.00%|

 II. Number of shareholders and shareholding positions
In shares
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Total common shareholders at the end of|||||Total of shareholders of preference shares with restored voting||||||
|||18,981||||||||0|
|the report period|||||power at end of report period (if any)||||||
|Particulars about shareholders with over 5% of shares, or top 10 shareholders|||||||||||
||||Sharehol|End of the||Changed inthe reportperiod|||Frozen or pledged||
||||||||Amount of|Amount of|||
||Properties of||ding|report term|||||||
|Name of the shareholder|||||||unconditional|unconditional|Status of|Amou|
||shareholder||Proporti|Amount of|||||||
||||||||shares held|shares|shares|nt|
||||on|shares|||||||
|Hangzhou Steam TurbinePower Group Co., Ltd.|State-ownedlegal person||63.64%|479,824,800||0|479,824,800|0|||
|NORGES BANK|Overseas legalperson||0.78%|5,860,578||-109396|0|5,860,578|||
|GIC PRIVATE LIMITED|Overseas legalperson||0.45%|3,376,460||0|0|3,376,460|||
|Li Minggong|Overseasnatural person||0.43%|3,250,799||-2719175|0|3,250,799|||
|BOCHK INVESTMENTFUNDS-BOCHK CHINAGOLDEN DRAGON FUND|Overseas legalperson||0.31%|2,301,344||0|0|2,301,344|||
|AUSTRALIANSUPER PTYLTD|Overseas legalperson||0.28%|2,108,321||0|0|2,108,321|||
|Xia Zulin|Domesticnatural person||0.26%|1,925,000||194400|0|1,925,000|||
|KGI ASIA LIMITED|Overseas legalperson||0.23%|1,765,389||-1100|0|1,765,389|||
|VANGUARD TOTALINTERNATIONAL STOCKINDEX FUND|Overseas legalperson||0.23%|1,704,436||201900|0|1,704,436|||
|Zhu Guanhong|Domestic||0.19%|1,442,588||63800|0|1,442,588|||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
|||||||
|-|-|-|-|-|-|
||natural person|||||
|Situation of strategic investors or ordinary legal||||||
|person become one of the top 10 shareholders||None||||
|due to rights issue (if any)||||||
|||(1) Hangzhou Steam Power Group Co., Ltd. is the state-owned shareholder of the Company,||||
|||all of the other owners are B-share holders.||||
|Notes to relationship or “action in concert”||(2) There is no relationship between Hangzhou Steam Turbine Power Group Co., Ltd. and||||
|among the top ten shareholders.||other shareholders;||||
|||(3) None of HSTG or other shareholders is acting-in-concert as described by Administration||||
|||Rules of Information Disclosure on Change of Shareholding Position||||
|Top 10 holders of shares without trading limited conditions||||||
||||Amount of|Category of shares||
|Name of the shareholder|||unconditional shares|||
|||||Category of shares|Amount|
||||held at end of period|||
|NORGES BANK|||5,860,578|Foreign shares placed||
||||||5,860,578|
|||||in domestic exchange||
|GIC PRIVATE LIMITED|||3,376,460|Foreign shares placed||
||||||3,376,460|
|||||in domestic exchange||
|Li Minggong|||3,250,799|Foreign shares placed||
||||||3,250,799|
|||||in domestic exchange||
|BOCHK INVESTMENT FUNDS-BOCHK CHINA GOLDEN DRAGONFUND|||2,301,344|Foreign shares placed||
||||||2,301,344|
|||||in domestic exchange||
|AUSTRALIANSUPER PTY LTD|||2,108,321|Foreign shares placed||
||||||2,108,321|
|||||in domestic exchange||
|Xia Zulin|||1,925,000|Foreign shares placed||
||||||1,925,000|
|||||in domestic exchange||
|KGI ASIA LIMITED|||1,765,389|Foreign shares placed||
||||||1,765,389|
|||||in domestic exchange||
|VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND|||1,704,436|Foreign shares placed||
||||||1,704,436|
|||||in domestic exchange||
|朱冠洪|||1,442,588|Foreign shares placed||
||||||1,442,588|
|||||in domestic exchange||
|GSIC A/C MONETARY AUTHORITY OF SINGAPORE|||1,402,404|Foreign shares placed||
||||||1,402,404|
|||||in domestic exchange||
||||(1) It is unknown whether there is any relationship among the 10|||
||||unlimited share holders.|||
|Action-in-concert among top 10 non-restricted current share holders, top 10||||||
||||(2) The other shareholders are not regarded as “action-in-concert”|||
|non-restricted current share holders and top 10 shareholders||||||
||||parties as defined in the “Information Disclosure About Change of|||
||||Shareholding Status of PLCs”.|||
|Participating of margin transactions by the top 10 shareholders (if any)|||Not applicable|||

No agreed repurchasing trade by shareholders in the report period
III. Change of holding shareholder or substantial controller
No changes in holding shareholder or substantial controller in the report period.
IV. Proposals raised by the shareholders or their action-in-concert parties about increasing of shareholding
To the knowledge of the Company, there is not any proposal raised by the shareholders or their action-in-concert parties about increasing of shareholding.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter VII. The Preference Shares
No issue regarding preference shares in the report period.
Chapter VIII. Particulars of Directors, Supervisors, and Management
I. Change of shareholding of directors, supervisors and senior executives
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Shares|||||||
||||||||Shares|Shares put|Shares|
||||holding at|Shares|Shares|Shares||||
|||Status|||||under|under|under|
||||the|increased|decreased|held at||||
|Name|Position|of|||||restriction at|restriction|restriction|
||||beginning of|this term|this term|the end||||
|||service|||||beginning of|in the|at end of|
||||term|(shares)|(shares)|of term||||
||||||||period|period|period|
||||(shares)|||||||
|Wang||On||||||||
||Supervisor||16,056|2,100|0|18,156|0|0|0|
|Xiaohu||duty||||||||
|Total|--|--|16,056|2,100|0|18,156|0|0|0|

 II. Replacing of directors, supervisors, and executives
No changes happened to any of the directors, supervisors, or executives in the report period. For details please refer to the Annual Report 2013.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter IX. Financial Report
I.Auditors’ Report
The Semi-annual Financial Report is not audited.
II. The Financial Statements
All figures in the Notes to the Financial Statements are in RMB Yuan
1. Consolidated Balance Sheet
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|771,330,801.56|883,141,568.17|
|Settlement provision|||
|Outgoing call loan|||
|Transactional financial assets|||
|Notes receivable|777,512,220.25|921,474,660.68|
|Account receivable|2,134,130,750.33|2,116,165,121.01|
|Prepayment|263,112,965.60|221,002,418.39|
|Insurance receivable|||
|Reinsurance receivable|||
|Provisions of Reinsurance contracts receivable|||
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|36,648,182.54|31,299,637.50|
|Repurchasing of financial assets|||
|Inventories|1,783,383,959.21|1,522,662,268.44|
|Non-current asset due in 1 year|||
|Other current asset|360,060,079.60|318,647,045.27|
|Total of current asset|6,126,178,959.09|6,014,392,719.46|
|Non-current assets|||
|Disburse of consigned loans|||
|Sellable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long-term share equity investment|472,349,826.87|472,349,826.87|
|Investment real estates|||
|Fixed assets|575,951,378.92|609,425,345.52|
|Construction in process|182,879,223.36|166,904,606.60|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|308,217,878.79|225,562,108.26|
|R&D expense|||
|Goodwill|||
|Long-term amortizable expenses|36,748.58|36,748.58|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||
|-|-|-|
|Deferred income tax asset|94,839,467.12|90,477,451.14|
|Other non-current asset||66,500,000.00|
|Total of non-current assets|1,634,274,523.64|1,631,256,086.97|
|Total of assets|7,760,453,482.73|7,645,648,806.43|
|Current liabilities|||
|Short-term loans|296,900,000.00|376,900,000.00|
|Loan from Central Bank|||
|Deposit received and hold for others|||
|Call loan received|||
|Transactional financial liabilities|||
|Notes payable|72,182,776.00|168,751,198.95|
|Account payable|944,920,884.78|778,441,385.31|
|Advances received|1,497,299,419.05|1,480,588,499.90|
|Selling of repurchased financial assets|||
|Fees and commissions receivable|||
|Employees’ wage payable|64,476,048.58|63,401,599.09|
|Tax payable|79,556,783.49|107,956,056.99|
|Interest payable|||
|Dividend payable|150,802,080.00||
|Other account payable|33,759,075.82|46,941,539.40|
|Reinsurance fee payable|||
|Insurance contract provision|||
|Entrusted trading of securities|||
|Entrusted selling of securities|||
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|3,139,897,067.72|3,022,980,279.64|
|Non-current liabilities|||
|Long-term borrowings|||
|Bond payable|||
|Long-term payable|330,000.00|330,000.00|
|Special payable|||
|Expected liabilities|||
|Deferred income tax liability|1,017,473.05|1,017,473.05|
|Other non-recurring liabilities|9,966,694.00|9,700,985.00|
|Total of non-current liabilities|11,314,167.05|11,048,458.05|
|Total of liability|3,151,211,234.77|3,034,028,737.69|
|Owners’ equity (or shareholders’ equity)|||
|Capital paid in (or share capital)|754,010,400.00|754,010,400.00|
|Capital reserves|139,590,345.09|139,590,345.09|
|Less: Shares in stock|||
|Special reserves|17,527,728.53|17,276,201.15|
|Surplus reserves|583,824,678.05|583,824,678.05|
|Common risk provision|||
|Retained profit|2,782,174,899.22|2,736,802,630.30|
|Different of foreign currency translation|-242,221.91|-562,143.85|
|Total of owner’s equity belong to the parent company|4,276,885,828.98|4,230,942,110.74|
|Minor shareholders’ equity|332,356,418.98|380,677,958.00|
|Total of owners’ equity (or shareholders’ equity)|4,609,242,247.96|4,611,620,068.74|
|Total of liability and shareholders’ equity (or owners’ equity)|7,760,453,482.73|7,645,648,806.43|

Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 2. Balance Sheet of the Parent Company
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
||||
|-|-|-|
|Items|Closing balance|Opening balance|
|Current asset:|||
|Monetary capital|423,425,045.57|295,292,983.14|
|Transactional financial assets|||
|Notes receivable|511,432,623.94|601,340,832.00|
|Account receivable|1,780,365,935.39|1,788,860,441.94|
|Prepayment|131,824,729.51|142,783,696.27|
|Interest receivable|||
|Dividend receivable|||
|Other account receivable|34,612,116.87|25,065,309.78|
|Inventories|1,354,522,748.74|1,119,933,842.22|
|Non-current asset due in 1 year|||
|Other current asset|64,000,000.00||
|Total of current asset|4,300,183,200.02|3,973,277,105.35|
|Non-current assets|||
|Sellable financial asset|||
|Expired investment in possess|||
|Long-term receivable|||
|Long-term share equity investment|949,669,204.90|949,669,204.90|
|Investment real estates|||
|Fixed assets|292,826,104.62|316,182,652.53|
|Construction in process|134,333,124.98|124,088,852.72|
|Engineering goods|||
|Fixed asset disposal|||
|Production physical assets|||
|Gas & petrol|||
|Intangible assets|184,615,554.69|181,668,119.33|
|R&D expense|||
|Goodwill|||
|Long-term amortizable expenses|||
|Deferred income tax asset|61,066,646.31|61,066,646.31|
|Other non-current asset|||
|Total of non-current assets|1,622,510,635.50|1,632,675,475.79|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||
|-|-|-|
|Total of assets|5,922,693,835.52|5,605,952,581.14|
|Current liabilities|||
|Short-term loans|180,000,000.00|260,000,000.00|
|Transactional financial liabilities|||
|Notes payable|||
|Account payable|621,629,437.15|469,018,283.68|
|Advances received|1,032,543,344.83|1,060,240,346.99|
|Employees’ wage payable|44,557,415.92|49,561,769.28|
|Tax payable|50,202,460.59|63,656,915.72|
|Interest payable|||
|Dividend payable|150,802,080.00||
|Other account payable|20,125,942.18|31,407,616.90|
|Non-current liability due in 1 year|||
|Other current liability|||
|Total of current liability|2,099,860,680.67|1,933,884,932.57|
|Non-current liabilities|||
|Long-term borrowings|||
|Bond payable|||
|Long-term payable|||
|Special payable|||
|Expected liabilities|||
|Deferred income tax liability|1,017,473.05|1,017,473.05|
|Other non-recurring liabilities|465,959.00|200,250.00|
|Total of non-current liabilities|1,483,432.05|1,217,723.05|
|Total of liability|2,101,344,112.72|1,935,102,655.62|
|Owners’ equity (or shareholders’ equity)|||
|Capital paid in (or share capital)|754,010,400.00|754,010,400.00|
|Capital reserves|138,953,250.09|138,953,250.09|
|Less: Shares in stock|||
|Special reserves|7,295,765.20|7,295,765.20|
|Surplus reserves|565,068,272.92|565,068,272.92|
|Common risk provision|||
|Retained profit|2,356,022,034.59|2,205,522,237.31|
|Different of foreign currency translation|||
|Total of owners’ equity (or shareholders’ equity)|3,821,349,722.80|3,670,849,925.52|
|Total of liability and shareholders’ equity (or owners’ equity)|5,922,693,835.52|5,605,952,581.14|

Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 3. Consolidated Income Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd In RMB Yuan
||||
|-|-|-|
||Amount of the Current|Amount of the Previous|
|Items|||
||Term|Term|
|I. Total revenue|1,743,362,642.27|2,019,745,830.92|
|Incl. Business income|1,743,362,642.27|2,019,745,830.92|
|Interest income|||
|Insurance fee earned|||
|Fee and commission received|||
|II. Total business cost|1,517,296,543.27|1,747,271,800.06|
|Incl. Business cost|1,074,446,850.16|1,350,033,911.16|
|Interest expense|||
|Fee and commission paid|||
|Insurance discharge payment|||
|Net claim amount paid|||
|Net insurance policy reserves provided|||
|Insurance policy dividend paid|||
|Reinsurance expenses|||
|Business tax and surcharge|11,426,673.94|17,369,338.95|
|Sales expense|68,197,974.19|92,037,454.56|
|Administrative expense|298,799,463.80|262,693,939.02|
|Financial expenses|9,202,486.72|1,542,054.93|
|Asset impairment loss|55,223,094.46|23,595,101.44|
|Plus: Gains from fluctuation of fair value (“-“ for loss)|||
|Investment gains (“-“ for loss)|33,668,236.76|64,696,068.76|
|Incl. Investment gains from affiliates|||
|Gains from currency exchange (“-“ for loss)|||
|III. Operation profit (“-“ for loss)|259,734,335.76|337,170,099.62|
|Plus: Non business income|12,194,329.71|4,202,690.63|
|Less: Non-business expenses|4,552,652.16|4,911,095.64|
|Incl. Loss from disposal of non-current assets|||
|IV. Total profit (“-“ for total loss)|267,376,013.31|336,461,694.61|
|Less: Income tax expenses|39,673,928.67|47,681,073.69|
|V. Net profit (“-“ for net loss)|227,702,084.64|288,780,620.92|
|Including: Net profit realized by the entity taken over|||
|before the takover|||
|Net profit attributable to the owners of parent company|196,174,851.01|232,926,224.38|
|Minor shareholders’ equity|31,527,233.63|55,854,396.54|
|VI. Earnings per share:|--|--|
|(I) Basic earnings per share|0.26|0.31|
|(II) Diluted earnings per share|0.26|0.31|
|VII. Other misc. incomes|751,350.27||
|VIII. Total of misc. incomes|228,453,434.91|288,780,620.92|
|Total of misc. incomes attributable to the owners of the|||
||196,494,772.95|232,926,224.38|
|parent company|||
|Total misc gains attributable to the minor shareholders|31,958,661.96|55,854,396.54|

Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 4. Income Statement of the Parent Co.
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
||||
|-|-|-|
||Amount of the Current|Amount of the Previous|
|Items|||
||Term|Term|
|I. Turnover|1,201,478,303.95|1,507,118,490.87|
|Less: Operation cost|781,172,768.01|1,077,683,194.39|
|Business tax and surcharge|6,040,737.39|12,387,170.07|
|Sales expense|42,538,296.57|61,114,849.26|
|Administrative expense|186,037,313.75|169,451,990.00|
|Financial expenses|8,086,889.06|-871,655.94|
|Asset impairment loss|49,149,559.39|16,913,497.95|
|Plus: Gains from fluctuation of fair value (“-“ for loss)|||
|Investment gains (“-“ for loss)|195,852,809.48|176,498,662.56|
|Incl. Investment gains from affiliates|||
|II. Operational profit (“-“ for loss)|324,305,549.26|346,938,107.70|
|Plus: Non business income|1,044,088.00|902,376.33|
|Less: Non-business expenses|2,487,972.76|3,851,456.02|
|Incl. Loss from disposal of non-current assets|||
|III. Total profit (“-“ for total loss)|322,861,664.50|343,989,028.01|
|Less: Income tax expenses|21,559,787.22|26,182,682.84|
|IV. Net profit (“-“ for net loss)|301,301,877.28|317,806,345.17|
|V. Earnings per share|--|--|
|(I) Basic earnings per share|||
|(II) Diluted earnings per share|||
|VI. Other misc gains|||
|VII. Total of integrated income|301,301,877.28|317,806,345.17|

Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 5. Consolidated Cash Flow Statement
Prepared by: Hangzhou Steam Turbine Co., Ltd In RMB Yuan
||||
|-|-|-|
||Amount of the|Amount of the|
|Items|||
||Current Term|Previous Term|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of services|1,494,144,550.03|1,652,449,867.92|
|Net increase of customer deposits and capital kept for brother company|||
|Net increase of loans from central bank|||
|Net increase of inter-bank loans from other financial bodies|||
|Cash received against original insurance contract|||
|Net cash received from reinsurance business|||
|Net increase of client deposit and investment|||
|Net increase of trade financial asset disposal|||
|Cash received as interest, processing fee, and commission|||
|Net increase of inter-bank fund received|||
|Net increase of repurchasing business|||
|Tax returned|230,602.76|6,777,141.50|
|Other cash received from business operation|2,670,915.77|12,593,472.87|
|Sub-total of cash inflow from business activities|1,497,046,068.56|1,671,820,482.29|
|Cash paid for purchasing of merchandise and services|784,127,440.61|986,252,669.75|
|Net increase of client trade and advance|||
|Net increase of savings in central bank and brother company|||
|Cash paid for original contract claim|||
|Cash paid for interest, processing fee and commission|||
|Cash paid for policy dividend|||
|Cash paid to staffs or paid for staffs|323,206,406.63|347,910,015.56|
|Taxes paid|173,868,146.85|232,160,309.19|
|Other cash paid for business activities|96,057,090.75|-6,843,710.06|
|Sub-total of cash outflow from business activities|1,377,259,084.84|1,559,479,284.44|
|Cash flow generated by business operation, net|119,786,983.72|112,341,197.85|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving||28,992,269.95|
|Cash received as investment profit|33,668,236.76|87,226,202.37|
|Net cash retrieved from disposal of fixed assets, intangible assets, and other long-term assets|1,142,941.52||
|Net cash received from disposal of subsidiaries or other operational units||-2,446,457.95|
|Other investment-related cash received|1,063,000,000.00|1,268,610,000.00|
|Sub-total of cash inflow due to investment activities|1,097,811,178.28|1,382,382,014.37|
|Cash paid for construction of fixed assets, intangible assets and other long-term assets|51,200,201.74|55,060,633.53|
|Cash paid as investment||13,211,525.00|
|Net increase of loan against pledge|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|1,105,001,561.00|1,588,610,000.00|
|Sub-total of cash outflow due to investment activities|1,156,201,762.74|1,656,882,158.53|
|Net cash flow generated by investment|-58,390,584.46|-274,500,144.16|
|III. Cash flow generated by financing|||
|Cash received as investment|729,626.40||
|Incl. Cash received as investment from minor shareholders|||
|Cash received as loans|68,100,000.00|185,510,000.00|
|Cash received from bond placing|||
|Other financing-related cash received|||
|Subtotal of cash inflow from financing activities|68,829,626.40|185,510,000.00|
|Cash to repay debts|154,040,000.00|299,949,250.40|
|Cash paid as dividend, profit, or interests|88,569,981.17|91,502,155.46|
|Incl. Dividend and profit paid by subsidiaries to minor shareholders|||
|Other cash paid for financing activities|||
|Subtotal of cash outflow due to financing activities|242,609,981.17|391,451,405.86|
|Net cash flow generated by financing|-173,780,354.77|-205,941,405.86|
|IV. Influence of exchange rate alternation on cash and cash equivalents|573,188.90|-1,499,770.84|
|V. Net increase of cash and cash equivalents|-111,810,766.61|-369,600,123.01|
|Plus: Balance of cash and cash equivalents at the beginning of term|883,141,568.17|1,100,640,580.62|
|VI. Balance of cash and cash equivalents at the end of term|771,330,801.56|731,040,457.61|

Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 6. Cash Flow Statement of the Parent Co.
Prepared by: Hangzhou Steam Turbine Co., Ltd
In RMB Yuan
||||
|-|-|-|
||Amount of the Current|Amount of the Previous|
|Items|||
||Term|Term|
|I. Net cash flow from business operation|||
|Cash received from sales of products and providing of services|995,027,205.44|1,224,651,064.18|
|Tax returned|||
|Other cash received from business operation|2,446,973.54|4,074,801.31|
|Sub-total of cash inflow from business activities|997,474,178.98|1,228,725,865.49|
|Cash paid for purchasing of merchandise and services|516,126,399.41|851,471,751.94|
|Cash paid to staffs or paid for staffs|227,071,963.41|247,045,937.50|
|Taxes paid|92,848,391.75|128,247,174.17|
|Other cash paid for business activities|52,823,344.01|31,615,515.48|
|Sub-total of cash outflow from business activities|888,870,098.58|1,258,380,379.09|
|Cash flow generated by business operation, net|108,604,080.40|-29,654,513.60|
|II. Cash flow generated by investing|||
|Cash received from investment retrieving|||
|Cash received as investment profit|195,852,809.48|186,698,662.56|
|Net cash retrieved from disposal of fixed assets, intangible assets, and|||
|other long-term assets|||
|Net cash received from disposal of subsidiaries or other operational units|||
|Other investment-related cash received|334,000,000.00|1,040,000,000.00|
|Sub-total of cash inflow due to investment activities|529,852,809.48|1,226,698,662.56|
|Cash paid for construction of fixed assets, intangible assets and other|||
||25,752,130.39|40,581,203.49|
|long-term assets|||
|Cash paid as investment|||
|Net cash received from subsidiaries and other operational units|||
|Other cash paid for investment activities|398,000,000.00|1,330,000,000.00|
|Sub-total of cash outflow due to investment activities|423,752,130.39|1,370,581,203.49|
|Net cash flow generated by investment|106,100,679.09|-143,882,540.93|
|III. Cash flow generated by financing|||
|Cash received as investment|||
|Cash received as loans|||
|Cash received from bond placing|||
|Other financing-related cash received|||
|Subtotal of cash inflow from financing activities|||
|Cash to repay debts|80,000,000.00|100,000,000.00|
|Cash paid as dividend, profit, or interests|6,972,000.01|665,000.00|
|Other cash paid for financing activities|||
|Subtotal of cash outflow due to financing activities|86,972,000.01|100,665,000.00|
|Net cash flow generated by financing|-86,972,000.01|-100,665,000.00|
|IV. Influence of exchange rate alternation on cash and cash equivalents|399,302.95|-1,492,114.45|
|V. Net increase of cash and cash equivalents|128,132,062.43|-275,694,168.98|
|Plus: Balance of cash and cash equivalents at the beginning of term|295,292,983.14|654,577,030.60|
|VI. Balance of cash and cash equivalents at the end of term|423,425,045.57|378,882,861.62|

 Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 7. Statement of Change inOwners’ Equity (Consolidated)
Prepared by: Hangzhou Steam Turbine Co., Ltd
Amount of the Current Term
In RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount of the Current Term||||||||||
||Owners’ Equity Attributable to the Parent Company||||||||||
|Items|||Less:|||Common|||Minor shareholders’|Total of owners’|
||Practical capital input|Capital reserves|Shares|Special reserves|Surplus reserves|risk|Retained profit|Others|equity|equity|
||(or share capital)||||||||||
||||in stock|||provision|||||
|I. Balance at the end of last year|754,010,400.00|139,590,345.09||17,276,201.15|583,824,678.05||2,736,802,630.30|-562,143.85|380,677,958.00|4,611,620,068.74|
|Plus: Change of accounting policy|||||||||||
|Correcting of previous errors|||||||||||
|Others|||||||||||
|II. Balance at the beginning of current|||||||||||
||754,010,400.00|139,590,345.09||17,276,201.15|583,824,678.05||2,736,802,630.30|-562,143.85|380,677,958.00|4,611,620,068.74|
|year|||||||||||
|III. Changed this period (“-“ for|||||||||||
|||||251,527.38|||45,372,268.92|319,921.94|-48,321,539.02|-2,377,820.78|
|decrease)|||||||||||
|(I) Net profit|||||||196,174,851.01||31,527,233.63|227,702,084.64|
|(II) Other misc. income||||||||319,921.94|431,428.33|751,350.27|
|Total of (I) and (II)|||||||196,174,851.01|319,921.94|31,958,661.96|228,453,434.91|
|(III) Investment or decreasing of capital|||||||||||
|by owners|||||||||||
|1. Capital inputted by owners|||||||||||
|2. Amount of shares paid and accounted|||||||||||
|as owners’ equity|||||||||||
|3. Others|||||||||||
|(IV) Profit allotment|||||||-150,802,080.00||-80,581,307.97|-231,383,387.97|
|1. Providing of surplus reserves|||||||||||
|2. Common risk provision|||||||||||
|3. Allotment to the owners (or|||||||||||
||||||||-150,802,080.00||-80,581,307.97|-231,383,387.97|
|shareholders)|||||||||||
|4. Others|||||||||||
|(V) Internal transferring of owners’|||||||||||
|equity|||||||||||
|1. Capitalizing of capital reserves (or to|||||||||||
|capital shares)|||||||||||
|2. Capitalizing of surplus reserves (or to|||||||||||
|capital shares)|||||||||||
|3. Making up losses by surplus reserves|||||||||||
|4. Others|||||||||||
|(VI) Special reserves||||251,527.38|||||301,430.33|552,957.71|
|1. Provided this year||||1,689,177.58|||||563,714.86|2,252,892.44|
|2. Used this term||||1,437,650.20|||||262,284.53|1,699,934.73|
|(VII) Others|||||||-502.09||-323.34|-825.43|
|IV. Balance at the end of this term|754,010,400.00|139,590,345.09||17,527,728.53|583,824,678.05||2,782,174,899.22|-242,221.91|332,356,418.98|4,609,242,247.96|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Amount of Last Year
In RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Amount of Last Year||||||||||
||Owners’ Equity Attributable to the Parent Company||||||||||
|Items|||Less:|||Common|||Minor shareholders’|Total of owners’|
||Capital paid in (or|Capital reserves|Shares|Special reserves|Surplus reserves|risk|Retained profit|Others|equity|equity|
||share capital)||||||||||
||||in stock|||provision|||||
|I. Balance at the end of last year|754,010,400.00|139,590,345.09||10,294,548.34|518,540,739.23||2,449,720,889.86||456,124,350.75|4,328,281,273.27|
|Plus: Retrospective adjustment|||||||||||
|caused by merger of entities under|||||||||||
|common control|||||||||||
|Plus: Change of accounting policy|||||||||||
|Correcting of previous errors|||||||||||
|Others|||||||||||
|II. Balance at the beginning of current|||||||||||
||754,010,400.00|139,590,345.09||10,294,548.34|518,540,739.23||2,449,720,889.86||456,124,350.75|4,328,281,273.27|
|year|||||||||||
|III. Changed this period (“-“ for|||||||||||
|||||6,981,652.81|65,283,938.82||287,081,740.44|-562,143.85|-75,446,392.75|283,338,795.47|
|decrease)|||||||||||
|(I) Net profit|||||||653,356,182.05||81,467,451.81|734,823,633.86|
|(II) Other misc. income||||||||-562,143.85|-758,074.88|-1,320,218.73|
|Total of (I) and (II)|||||||653,356,182.05|-562,143.85|80,709,376.93|733,503,415.13|
|(III) Investment or decreasing of capital|||||||||||
||||||||||-50,207,922.63|-50,207,922.63|
|by owners|||||||||||
|1. Capital inputted by owners|||||||||-50,207,922.63|-50,207,922.63|
|2. Amount of shares paid and accounted|||||||||||
|as owners’ equity|||||||||||
|3. Others|||||||||||
|(IV) Profit allotment|||||65,283,938.82||-366,888,098.81||-106,963,952.00|-408,568,111.99|
|1. Providing of surplus reserves|||||65,283,938.82||-65,283,938.82||||
|2. Common risk provision|||||||||||
|3. Allotment to the owners (or|||||||||||
||||||||-301,604,159.99||-106,963,952.00|-408,568,111.99|
|shareholders)|||||||||||
|4. Others|||||||||||
|(V) Internal transferring of owners’|||||||||||
||||||||||-1,886,977.19|-1,886,977.19|
|equity|||||||||||
|1. Capitalizing of capital reserves (or to|||||||||||
|capital shares)|||||||||||
|2. Capitalizing of surplus reserves (or to|||||||||||
|capital shares)|||||||||||
|3. Making up losses by surplus reserves|||||||||||
|4. Others|||||||||-1,886,977.19|-1,886,977.19|
|(VI) Special reserves||||7,595,310.01|||||2,507,899.34|10,103,209.35|
|1. Provided this year||||10,042,022.97|||||3,231,339.45|13,273,362.42|
|2. Used this term||||2,446,712.96|||||723,440.11|3,170,153.07|
|(VII) Others||||-613,657.20|||613,657.20||395,182.80|395,182.80|
|IV. Balance at the end of this term|754,010,400.00|139,590,345.09||17,276,201.15|583,824,678.05||2,736,802,630.30|-562,143.85|380,677,958.00|4,611,620,068.74|

 Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 8. Statement of Change inOwners’ Equity (Parent Co.)
Prepared by: Hangzhou Steam Turbine Co., Ltd
Amount of the Current Term
In RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of the Current Term||||||||
|Items|Capital paid in||Less: Shares|||Common||Total of|
|||Capital reserves||Special reserves|Surplus reserves||Retained profit||
||(or share capital)||in stock|||risk provision||owners’ equity|
|I. Balance at the end of last year|754,010,400.00|138,953,250.09||7,295,765.20|565,068,272.92||2,205,522,237.31|3,670,849,925.52|
|Plus: Change of accounting policy|||||||||
|Correcting of previous errors|||||||||
|Others|||||||||
|II. Balance at the beginning of current year|754,010,400.00|138,953,250.09||7,295,765.20|565,068,272.92||2,205,522,237.31|3,670,849,925.52|
|III. Changed this period (“-“ for decrease)|||||||150,499,797.28|150,499,797.28|
|(I) Net profit|||||||301,301,877.28|301,301,877.28|
|(II) Other misc. income|||||||||
|Total of (I) and (II)|||||||301,301,877.28|301,301,877.28|
|(III) Investment or decreasing of capital by owners|||||||||
|1. Capital inputted by owners|||||||||
|2. Amount of shares paid and accounted as owners’ equity|||||||||
|3. Others|||||||||
|(IV) Profit allotment|||||||-150,802,080.00|-150,802,080.00|
|1. Providing of surplus reserves|||||||||
|2. Common risk provision|||||||||
|3. Allotment to the owners (or shareholders)|||||||-150,802,080.00|-150,802,080.00|
|4. Others|||||||||
|(V) Internal transferring of owners’ equity|||||||||
|1. Capitalizing of capital reserves (or to capital shares)|||||||||
|2. Capitalizing of surplus reserves (or to capital shares)|||||||||
|3. Making up losses by surplus reserves|||||||||
|4. Others|||||||||
|(VI) Special reserves|||||||||
|1. Provided this year||||1,078,331.01||||1,078,331.01|
|2. Used this term||||1,078,331.01||||1,078,331.01|
|(VII) Others|||||||||
|IV. Balance at the end of this term|754,010,400.00|138,953,250.09||7,295,765.20|565,068,272.92||2,356,022,034.59|3,821,349,722.80|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Amount of Last Year
In RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount of Last Year||||||||
|Items|Capital paid in (or share|Capital|Less: Shares in|Special|Surplus|Common risk||Total of owners’|
||||||||Retained profit||
||capital)|reserves|stock|reserves|reserves|provision||equity|
|I. Balance at the end of last year|754,010,400.00|138,953,250.09||4,671,366.80|499,784,334.10||1,919,570,947.92|3,316,990,298.91|
|Plus: Change of accounting policy|||||||||
|Correcting of previous errors|||||||||
|Others|||||||||
|II. Balance at the beginning of current|||||||||
||754,010,400.00|138,953,250.09||4,671,366.80|499,784,334.10||1,919,570,947.92|3,316,990,298.91|
|year|||||||||
|III. Changed this period (“-“ for decrease)||||2,624,398.40|65,283,938.82||285,951,289.39|353,859,626.61|
|(I) Net profit|||||||652,839,388.20|652,839,388.20|
|(II) Other misc. income|||||||||
|Total of (I) and (II)|||||||652,839,388.20|652,839,388.20|
|(III) Investment or decreasing of capital|||||||||
|by owners|||||||||
|1. Capital inputted by owners|||||||||
|2. Amount of shares paid and accounted as|||||||||
|owners’ equity|||||||||
|3. Others|||||||||
|(IV) Profit allotment|||||65,283,938.82||-366,888,098.81|-301,604,159.99|
|1. Providing of surplus reserves|||||65,283,938.82||-65,283,938.82||
|2. Common risk provision|||||||||
|3. Allotment to the owners (or|||||||||
||||||||-301,604,159.99|-301,604,159.99|
|shareholders)|||||||||
|4. Others|||||||||
|(V) Internal transferring of owners’|||||||||
|equity|||||||||
|1. Capitalizing of capital reserves (or to|||||||||
|capital shares)|||||||||
|2. Capitalizing of surplus reserves (or to|||||||||
|capital shares)|||||||||
|3. Making up losses by surplus reserves|||||||||
|4. Others|||||||||
|(VI) Special reserves||||2,624,398.40||||2,624,398.40|
|1. Provided this year||||4,832,002.89||||4,832,002.89|
|2. Used this term||||2,207,604.49||||2,207,604.49|
|(VII) Others|||||||||
|IV. Balance at the end of this term|754,010,400.00|138,953,250.09||7,295,765.20|565,068,272.92||2,205,522,237.31|3,670,849,925.52|

 Legal representative: Nie Zhonghai Accounting supervisor: Pu Yangshuo Manager of financial dept.: Jiang Rong
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 III. Company Profiles
Hangzhou Steam Turbine Co., Ltd. (the Company) was incorporated as a joint stock limited company exclusively promoted by Hangzhou Steam Turbine& Power Group Company Limited (“HSTG”) approved by the Securities Regulatory Commission of the State Council with the Document SRC[1998] No. 8 by offering domestically listed foreign currency ordinary shares (B Shares), with registration date: April 23, 1998, legal entity business license No.:企股浙总字第002150号. The number of Business License was changed to 330000400001023 on May 6, 2009. At incorporation the Company was registered with capital of RMB220 million, in which 80 million B shares were issued and listed for trading in Shenzhen Stock Exchange on April 28, 1998. TheCompany’s registered capital is now increased to RMB754.0104 million with total capital share of 754.0104 million shares (face value RMB1.00). Among which state-owned legal person shares were 479.8248 million shares and 274.1856 million shares of current B shares.
The scope of main businesses of the Company: The design and manufacturing of steam turbine, gas turbine, other rotating and to-and-fro machinery and auxiliary equipment, and spare parts and components, sales of self-manufactured products and the provision of relevant after-sales service and import& export service.
IV. Principal Accounting Policies, Estimations and Correcting of Previous Errors
1. Basis of financial statement
The Company adopts perpetual operation as the basis of financial statements.
2. Statement of compliance to the Enterprise Accounting Standard
The finance report produced by the Company is accordance with the Enterprise Accounting Standard, and reflects theCompany’s financial state, business performance and cash flow frankly and completely.
3. Accounting period
The Company uses the calendar year for its fiscal year. A fiscal year is from January 1 to December 31.
4. Standard currency for bookkeeping
The Company uses Renminbi (RMB) as the standard currency for book keeping.
5. Accounting treatment of the merging entities under common control and different control
(1) Merger of entities under common control
Assets and liabilities acquired in merger of entities are measured at book values at the date of merger. The difference between the net book value of asset and the offered price (or total of face value of shares issued) will be adjusted into capital reserves; when the capital reserves is not enough to reduce, it will be adjusted into retained profit.
(2) Merger of enterprises under different control
The difference of takeover cost over the fair value of recognizable net asset of the acquired entity is recognized as goodwill at the day of takeover; in case the takeover cost is lower than the fair value of recognizable net asset of the acquired entity, the measuring process over the recognizable asset, liabilities,contingent liabilities, and takeover cost, shall be repeated, if comes out the same result, the difference shall be recorded into current income account.
6. Accounting policies on losing of control by disposal of share equity in multiple stages
7. Preparing method of consolidated financial statements
(1) Preparation of consolidated financial statements
The parent company puts all of its subsidiaries under its control into the consolidated financial statements. The consolidated financial statements are prepared according to the “Enterprise Accounting Standard No. 33– Consolidated Financial Statements”, basing on the accounts of the parent company and the subsidiaries, and after
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 adjusting the long-term investment equity in the subsidiary on equity basis.
(2) Accounting process on purchasing and selling, or selling and purchasing of the shares of the same subsidiary in successively two years
8. Recognition basis of cash and cash equivalents
Cash equivalent refers to the investment held by the Company with short term, strong liquidity and lower risk of value fluctuation that is easy to be converted into cash of known amount.
9. Translation of businesses and accounts in foreign currency
(1) Business in foreign currency
Foreign currency trades are translated into RMB at the rate of the day when the trades are made. Those balances of foreign currencies and monetary items in foreign currencies are accounted at the exchange rate of the balance sheet date. Exchange differences, other than special loans satisfying the conditions of capitalization, are accounted into current income account. Non-monetary items in foreign currencies and on historical cost are translated at the rate of the trade day. Non-monetary items in foreign currencies and on fair value are translated at the rate of the day when the fair value is recognized, where the differences are accounted as gain/loss from change of fair value. (2) Translating of financial statements in foreign currencies
Asset and liability items in the balance sheet are translated basing on the exchange rate of the balance sheet date;Owners’ equities other than Retained Profit are translated at the exchange rate of the date when the trade happened. Income and expense items in the income statement are translated at the similar rate of the date when the trade happened. Differences generated by the above translating of foreign currencies are demonstrated separately under theowners’ equity in the balance sheet.
10. Financial instruments
(1) Categorizing of financial instruments
Finance assets are divided initially into four types of financial asset appointed to be measured at fair value with their changes are accounted into current gain/loss accounts(including transactional finance asset and financial asset appointed to be measured at fair value with their changes are accounted into current gain/loss accounts), transactional financial assets, debt and account receivable, finance asset saleable.
Finance debts are divided initially into two types of financial debt appointed to be measured at fair value with their changes are accounted into current gain/loss accounts(including transactional finance debt and financial debt appointed to be measured at fair value with their changes are accounted into current gain/loss accounts), other finance debt.
(2) Recognition basis and measurement of financial instruments
When the Company is one part of the finance instrument contract, one finance asset or debt is recognized. When on recognizing initially finance asset or debt, it is measured by fair value, for the finance asset or debt which appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, the related transaction expenses are directly accounted into current gain and loss; for other finance asset and debt, the related transaction expenses accounted into the initial recognition account.
The Company future measures finance asset by fair value without deducting future possible transaction fee but with exception: (1) Due investment, debt and account receivable are measured by actual interest rate according to the amortized costs. (2) Equity instrument investment which have no quote in active market and which fair valuecan’t be measured reliably, and its derived finance assets which are connected with the equity instrument and which are summarized through the equity instrument, are measured by cost.
The Company conduct successive measure of finance debt according to amortized cost by actual interest rate with exception as following: (1) finance debt which appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, is measured at fir value without deducting possible future transactional fee at settlement; (2) Equity instrument investment which have no quote in active market and which fair valuecan’t be measured reliably, and its derived finance assets which are connected with the equity instrument and
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 which are closed off through the equity instrument, are measured by cost. (3) finance debt sponship contracts which are not appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, or debt agreements at rate lower than market rate and which are not appointed to be measured at fair value with their changes are accounted into current gain/loss accounts, are measured at the higher value between the optimal estimated value payable according to current obligations and the surplus value from which the initial recognition value deduct the accumulated amortized amount according to the actual interest rate.
Gain or loss from fluctuation of financial assets or liabilities are handled at the following ways, except for relating to hedge instrument.
(1) Gain or loss from fluctuation of fair value of financial assets or liabilities and accounted into current gain/loss account, are accounted into gain/loss of fluctuation of fair value. Interests or cash dividend received in the period of holding these assets are recognized as investment gains. When they are disposed, the difference between the amount actually received and initially booked value is recognized as investment gains, and adjust the gain/loss from fair value fluctuation.
(2) Fluctuation of fair value of sellable financial assets accounted into capital reserves; interests gained at actual interest rate are accounting into investment gains; the cash dividend received from sellable instrument investment, are accounted into investment gains when distributed; At disposal of these investment, the difference between actual amount received and book value are recognized as investment gains after deducting of accumulated change of fair value which are originally accounted into capital reserves.
As soon as the contract rights of acquiring the cash flow of particular financial asset have been terminated or almost all of the risks and rewards attached to the financial asset have been transferred, recognition of the financial asset is terminated; as soon as the current liabilities attached to the financial liability have been completely or partially relieved, recognition of the financial liability or part of is terminated.
(3) Recognition basis and measurement for transferred financial assets
The Company stop recognizing the finance asset which risks and remuneration of ownership are transferred to the receiver; and continue to recognize the transferred finance asset which risks and remuneration of ownership are kept, and recognize the value as one finance debt. For the finance assets which risks and remuneration of ownership are not transferred or kept, the Company recognize them as following: (1) stop recognizing the finance asset which are given up the control; (2) continue to recognize the finance asset and related finance debt according to the extend which involved into the transferred finance asset for the finance asset which are not given up control. The Company measured the surplus between the following two values for the transferred finance assets which fulfill the stop recognition requirements into current gain or loss: (1) Account value of the transferred finance asset; (2) Consideration plus the accumulated fair value changes which were accounted directed into ownership rights. For the transferred finance assets which partly fulfill the stop recognition requirements the Company amortized the stopped recognition part and the not-stopped recognition part of the account value of the whole transferred finance asset, and account the surplus between the following two values into current gain or loss: (1) Account value of the stopped recognition part; (2) consideration plus the corresponding stopped recognition part of the accumulated fair value changes which were accounted directed into ownership rights.
(4) Termination condition for recognition of financial liabilities
As soon as the contract rights of acquiring the cash flow of particular financial asset have been terminated or almost all of the risks and rewards attached to the financial asset have been transferred, recognition of the financial asset is terminated; as soon as the current liabilities attached to the financial liability have been completely or partially relieved, recognition of the financial liability or part of is terminated.
(5) Recognition of fair values of financial assets and liabilities
For the finance asset or debt which active market exists, the Company recognize the fair value according to the quote on the active market; for the finance asset or debt which active market not exists, the Company recognized the fair value using estimation technology (including reference of the latest market prices from freewill transactions by persons familiar with conditions, reference of the current fair value of other similar finance instrument in characteristics, discounted cash flow models and Option Pricing Model); for the initially acquired or initial finance asset or finance debt, the Company recognize the fair value basis on the market trading price.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (6) Impairment test and basis of provisions on financial assets (exclude receivable accounts)
1) The Company conduct impairment test to the finance asset other than which appointed to be measured at fair value with their changes are accounted into current gain/loss accounts on balance sheet day. Impairment provision is provided as long as evidence showing that impairment has happened to the financial asset.
2) The Company conduct independently impairment test for single finance asset with large value for single finance asset with little value the Company conduct the impairment test with those of the finance asset composition which have similar credit risk characteristics; for the non impairment assets which are tested independently, the Company conduct the impairment test with those of the finance asset composition which have similar credit risk characteristics.
3) For the finance asset accounted by amortized cost which have subject impairment evidence at the end term, the impairment loss was recognized according to the difference between the account value and the anticipating future cash flow, for the finance asset which have little difference between its short term account receivable anticipating future cash flow and its current value, the Companydon’t discount the future cash flow when recognizing related impairment loss. When there is impairment loss for the Equity instrument investment which have no quote in active market and which fair valuecan’t be measured reliably and its derived finance assets which are connected with the equity instrument and which are calculated through the equity instrument, are measured by cost, the difference is recognized as impairment loss between the account value of the equity instrument investment and its derived finance asset and the current value discounted by the future cash flow according to the market profit rate of the similar finance asset. The Company recognize the impairment loss for the saleable finance asset which fair value have sharp decreasing and the anticipating decreasing trend is not temporary, and account it into impairment loss together with the accumulated fair vale loss which was accounted intoowner’s equity directly.
When impairment occurred with a sellable financial asset, the accumulated losses caused by decreasing of fair value which have originally been written intoowners’ equity shall be carried over to current gain/loss account. If practical evidence showing that the value of a particular financial asset has recovered in value after a impairment loss has been recognized and practically related to the issues occurred after recognition of the loss, the impairment loss recognized shall be restored and accounted into current gain/loss. Impairment loss of sellable equity investment instrument will be restored toowners’ equity when the fair value has increased afterward.
Recognition standard for impairment of sellable financial assets.
(7) If investment held to mature is re-categorized to sellable financial assets, please state th intention or evidence of change in capability
11. Recognition standard and providing basis of bad debt provision on receivable accounts
(1) Bad debt provision on receivable accounts with major amount individually
|||
|-|-|
|Basis of recognition or standard amount||
||Accounts take over 10% of the book balance of receivable accounts|
|of individual account with large amount||
||Impairment test performed individually, bad debt provision will be|
|Basis of bad debt provision|provided at the difference of expected cash flow lower than the book|
||value.|

(2) Receivable accounts on which bad debt provisions are provided as groups
||||
|-|-|-|
|Name of the|||
||Basis of bad debt provision|Basis of recognition for portfolios|
|portfolio|||
|Group by age|||
||Age analysis method|With similar characteristics of credit risks|
|analysis|||

Bad debt provisions are provided on age analyze basis in the portfolio
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||
|-|-|-|
||Rate of provision on receivable||
|Age||Rate of provision on other receivable accounts|
||accounts||
|Within 1 yr, (included)|5.00%|5.00%|
|1-2 yrs|20.00%|20.00%|
|2-3 years|40.00%|40.00%|
|Over 3 years|60.00%|60.00%|
|3-4 yrs|60.00%|60.00%|
|4-5 yrs|60.00%|60.00%|
|over 5 yrs|60.00%|60.00%|

 Bad debt provisions are provided on percentage basis in the portfolio
Not applicable
Bad debt provisions are provided on other basis in the portfolio
Not applicable
(3) Receivable accounts with minor amount but bad debt provisions are provided individually
|||
|-|-|
||When there is significant difference between the current value of future|
|Basis of providing bad debt||
||cash flow of the receivable account and the current value of future cash|
|individually||
||flow of the group|
||Impairment test performed individually, bad debt provision will be|
|Basis of bad debt provision|provided at the difference of expected cash flow lower than the book|
||value.|

12. Inventories
(1) Inventory classification
Inventories include saleable finished goods or merchandise, product-in-process , consumption material and goods in manufacturing procedure or working procedure.
(2) Pricing of inventory to be delivered
Pricing basis:
Delivered out materials are accounted by weighted average method, issued out finished products are accounted at individual price.
(3) Recognition of realizable net value of inventory and providing of inventory impairment provision At the balance sheet day, inventories are measured at the lower of costs and cashable net values, the individual difference between the cashable net value and cost are provided as inventory impairment provision. For finished product, merchandise, saleable material and other saleable merchandise inventory, their cashable net values are recognized by their estimated sale price in normal operation deducting estimated sale expenses and related taxes; for material inventory which need processing, it cashable net value are recognized by the estimated sale prices of its finished products in normal operation deducting the estimated cost, sale expenses and related taxes due to the end of processing; At the balance sheet day, for inventory item which part has contract price and part has no
contract price, the cashable net value is accounted separately, and recognize the inventory impairment provision
or returnable cash..
(4) Inventory system
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Inventory system: perpetual inventory system
(5) Amortization of low-value consumables and packaging materials
Low price consumable
Basis of amortizing: one-off
Packaging materials
Basis of amortizing: one-off
13. Long-term equity investment
(1) Recognition of initial investment costs
1) For the long-term equity investment formed by corporate merger under common control, if it is the long-term equity investment obtained from the corporate merger by paying cash, transferring non-cash asset, bear liability and issuing equity securities, the share of book value of owner's equity of the merged party on the merger date shall be taken as the initial investment cost. The asset reserve is adjusted according to the difference between the initial investment cost of long-term equity investment and the book value of paid combined consideration or issued securities; if the capital is not enough for deduction, the remain earnings are adjusted.
The initial investment costs of those long-term equity investment which was formed by acquisition of entities under common control by stages are booked at the share of the book value of theowners’ equity of the entities at the date of acquisition in the individual and consolidated financial statements. Capital reserve is adjusted by the difference between the sum of book value of equity investment in the entities acquired and the newly increased investment cost and the initial cost of the long-term equity; retained income shall be adjusted in case the capital reserve is not enough to be deducted.
2) For the long-term equity investments formed by merger of enterprises under different control, the initial investment cost is recognized by the fair value of combined consideration on purchasing day and related expenses. Long-term equity investment formed by acquisition of entities under different control by trade in multiple stages are accounted separately in the financial statements and consolidated financial statements.
a) In individual financial statements, initial cost of an investment is the sum of book value of the equity in the acquired entity before the acquisition day and the newly increased investment cost at the acquisition day. In case the share equity of the acquired entity before the acquisition day was involved in other gains, they shall be transferred to current investment gains when the investment is disposed.
b) In the consolidated financial statements, the equity held before the acquisition day shall be recalculated on fair value basis at the acquisition day. The differences between the book value and fair value shall be accounted into current investment gains. In case the share equity of the acquired entity before the acquisition day was involved in other gains, they shall be transferred to current investment gains of the current period.
3) For the long-term equity investments formed by other than merger of enterprises: if it is gotten by paying cash, the initial investment cost is recognized by purchasing price when buy; if it is gotten by issuing equity securities, the initial investment cost is recognized by the fair value of the securities; if it is gotten byinvestor’s investment, the initial investment cost is recognized by investment contract or agreed value in contract (except the not fair contract value).
(2) Successive measurement and recognition of gain/loss
Cost basis is adopted in accounting of those long-term equity investments by which the Company has substantial control, and is adjusted in composing combined finance report according to equity basis; and those has no common control or major influence without quotation in an active market and the fair value cannot be reliably measured is also recalculated by cost basis. And equity basis is adopted in accounting of those long-term equity investments by which the Company has joint control or major influence on the invested enterprise.
(3) Basis to recognize common control and material influence on invested entities
According to the contract, if the investedenterprise’s main finance and operation policy need to be agreed by the other investing party, the investment is common control investment; if only have participating decision rights in
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 investedenterprise’s main finance and operation policy but have no own control or common control with other investing part, the investment is investment with major influence.
(4) Impairment test and providing of impairment provisions
When physical evidence showing that the investment in subsidiaries, affiliates, and joint ventures are impaired, impairment provision shall be provided upon the balance between the book value and retrievable value; where the long term equity investment with no control power or significant influence and has no quotation in an active market and the fair value cannot be reliably measured, long-term investment impairment provision will be provided according to “Enterprise Accounting Standard No.22– Recognition and measure of financial instrument. 14. Investment property
15. Fixed assets
(1) Recognition of fixed assets
Fixed assets is defined as the tangible assets which are held for the purpose of producing goods, providing services, lease or for operation& management, and have more than one year of service life.
Fixed assets are booked at practical cost. Depreciation started at the next month of the asset become usable on age average basis.
(2) Recognition and pricing of fixed asset leased by financing
Financed lease is recognized when one or several of the following conditions is satisfied:
1) The ownership over the leased asset is transferred to the lessee on expiration of the leasing period;
2) It is thelessee’s option to, or not to, buy the leased asset. However the predicted final consideration of the asset will far lower than its original fair value. Therefore it can be rationally determined that the lessee will use its option to buy off the asset.
3) The ownership is not transferred, but the leasing period is taking most of the service life (usually75% or over of the service life of the leased asset).
4) The current value of the lowest payment made by the lessee at the commencing date of the lease is almost equal to(90% or over of) the fair value of the asset at the same date; or the current value of the lowest amount received by the leaser at the commencing date of the lease is almost equal to(90% or over of) the fair value of the asset at the same day;
5) The asset to be leased is specialized for the use of the lessee, namely could not be used by others without major reconstruction.
Fixed asset leased on finance is booked at the lower one of the fair value at the commencing date and the current value of the lowest rental.
(3) Depreciation of different fixed assets
|||||
|-|-|-|-|
|Categories|Depreciation age (year)|Retain value rate|Annual depreciation ratio|
|Houses & buildings|20-30|4.00%|4.8-3.2|
|Equipment & machinery|8-15|4.00%|12-6.4|
|Electronic equipment|5|4.00%|19.2|
|Transportation equipment|5|4.00%|19.2|

(4) Impairment test and providing of impairment provisions on fixed assets
(5) Other remarks: no
16. Construction-in-progress
(1) Categories of construction-in-process
Construction, equipment installation, general maintenance of equipment
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (2) Standard and timing for transferring of construction-in-process to fixed assets
When the construction in process reaches its useful status as expected, it is transferred into fixed asset at actual cost. If the construction in process has reached useful status but with completion of project settlement process, it is transferred to fixed asset at the value estimated, and adjustment will happen after completion of project settlement process but no adjustment on depreciation provided previously.
(3) Impairment test and providing of impairment provisions on construction-in-process
When there is evidence showing that the construction-in-process has impaired at the balance sheet day, impairment provision shall be provided at the balance of the book value over the retrievable amount.
17. Borrowing expenses
(1) Principle of the recognition of capitalized borrowing costs
Loan expenses occurred in the Company, which can be categorized to purchasing or construction of assets satisfying the conditions of capitalization, shall be capitalized and accounted into capital costs; while other loan expenses are recognized as expenses and recorded into current income account.
(2) Capitalizing period of borrowing expenses
Capitalization started as soon as all of these conditions are satisfied: 1) Capital expenditures have occurred; 2) Loan expenses have occurred; 3) Necessary purchasing or construction processes have been started to make the asset usable or sellable.
(3) Temporarily suspension of capitalizing period
If irregular interruption occurred in the purchasing or construction process of the assets satisfying the capitalizing conditions, and suspended for over successive three months, capitalizing of loan expenses is suspended; loan expenses occurred during the suspension period are recognized as current expenses until the purchasing or construction process resumes.
Capitalizing of borrowing expenses suspends when the asset purchased or satisfying the capitalizing conditions reaches its useful or sellable status.
(4) Calculating of borrowing expense capitalizing
Special loans raised for purchasing or construction of assets satisfying the conditions of capitalization, interest to be capitalized will be the actual interest expenses occurred in the current period of loan (including the discount, premium, or amortizing decided on actual interest rate basis), less the interest income from the unused loans in bank account or provisional investment gains; common loans used for purchasing or construction of assets satisfying the conditions of capitalization, the interest to be capitalized will be the weighted average of balance over special loans multiply capitalization rate of common loans.
18. Biological assets
19. Petroleum assets
20. Intangible assets
(1) Pricing of intangible assets
Intangible assets are land using rights, patents, and non-patent technologies, which are measured at cost basis. (2) Estimation of service life of intangible assets with limited service life
For intangible assets with limited useful life, during the use life it is amortized according to the anticipating implementation method of the economic benefit of the intangible asset systematically and reasonably. Ifcan’t recognize the anticipating implementation method, the straight basis is deployed.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||
|-|-|-|
|Items|Expected useful life|Basis|
|Land using right|50|On useful life of land using rights|
|Operation rights of waste heat power plant|on actual operation term|On actual business term|
|Others|5|Expected useful life|

(3) Intangible assets without certain useful life
(4) Providing of intangible asset impairment provisions
When evidence showing that impairment occurred on intangible assets with definite useful life at the balance sheet day, impairment provision shall be provided at the balance of book value over the retrievable value. Impairment test shall be done on intangible assets with no definite useful life or intangible assets had not reached the useful status, with or without evidence.
(5) Dividing of research stage and development stage of internalR&D projects
(6) Accounting of internalR&D expenses
Expenditures of internal researching projects are accounted into current term gain and loss when happens. The development period expenditures are recognized as intangible assets when fulfill following conditions: (1) The intangible asset is completed and technically possible to be used or sold; (2) With intention to complete the intangible asset for purpose of use or sale; (3) Evidence showing that there are markets or the products produced with using of the intangible asset, or markets of the intangible asset itself, by which the intangible asset may produce financial benefits. Intangible assets used inside the Company must be approved for their usable characters. (4) Developing of the intangible assets are supported by sufficient technical, financial, and other resources, and the intangible assets can be used or sold. (5) Expenditures occurred in developing of the intangible asset may be reliably measured.
21. Long-term expenses to be amortized
Long-term amortizable expenses are recorded at actual amount occurred, and straight amortized to stipulated periods. In case a long-term expense was not benefiting the succeeding periods, then the balance of the account shall be transferred over to current income account.
22. Asset transferring with repurchasing terms
23. Predicted liabilities
(1) Recognition of expectable liabilities
(2) Accounting of estimated liabilities
24. Share payment and equity instruments
(1) Category of share payment
(2) Recognition of fair value of equity instruments
(3) Recognition basis of best estimation of exercisable equity instruments
(4) Accounting treatment of share payment plan to be implemented, revised, and terminated
25. Repurchasing of theCompany’s shares
26. Turnover
(1) Recognition time for sales of goods
Sales income is recognized when all of these conditions are satisfied: (1) Major risks and rewards attached to the
goods have been transferred to the purchaser; (2) The Company holds neither successive management power
which is normally attached to ownership, nor effective control, over the goods which have been sold out; (4)
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Amount of income may be reliably measured; (5) when the costs, occurred or will occur, may be measured reliably.
Particular methods for recognition of revenue. The Company is mainly engaged in designing, manufacturing, sales, and service of steam turbines and gas turbines falling in the range of rotating and reciprocating machinery, and parts. Recognition of sales in the country shall satisfy: products had been delivered to the buyer and the amount had been fixed. Payment was received or documents received with great possibility of cash inflow. And the cost of the products is able to be measured appropriately. Recognition of sales outside the country shall satisfy: The goods had been filed by the custom and departed with bill of lading obtained. The amount had been fixed, and payment was received or documents received with great possibility of cash inflow. And the cost of the products is able to be measured appropriately.
(2) Recognition of income from giving of using rights on assets
Income from giving of assets is recognized when satisfying requirements: related economic benefit flows in very possibly, income can be measured reliably. Amount of interest income is calculated according to the time and actual interest rate of the monetary capital is used by other party. Income of using fee is calculated upon the charge period and calculation provided by the related contract or agreement.
(3) Basis of recognizing service income
At balance sheet day, those service trades (simultaneously satisfying the requirements of those: income can be measured reliably, related economic benefit will flow in very possibly, transaction procedure can be confirmed reliably, happened and happening cost can be measured reliably) which can be reliably estimated are recognized at the percentage of completion, and progress of completion of service is decided by the portion of costs occurred over the estimated total costs. At balance sheet day, those service trades which can not be reliably estimated, if the happened services cost will be compensated, the services income are recognized according to happened service cost and transited to service cost according to same amount; if the happened services cost will not be compensated, the happened services cost are accounted into currentterm’s gain or loss and the services income will not be recognized.
(4) Basis and method to determine completion progress for income from service providing and construction contracts on percentage basis
1) When the result of the construction contract is able to be evaluated reliably at the balance sheet date, the income and cost of the contract are recognized on completion percentage basis. If the result of the construction contract is not able to be evaluated reliably, but the contract cost may be recovered, the income is recognized at the cost actually recovered, and the cost of the contract is recognized as contract expenses of the current period when it is occurred.
2) When all of the following conditions were satisfied, the result of a fix-amount contract is regarded as can be evaluated reliably: the total income of the contract may be measured reliably, there is great possibility that the financial benefit in relation with the contract will inflow, the actual contract costs may be identified and measured clearly and reliably, the construction progress and the cost to occur are able to be measured reliably. When all of the following conditions are satisfied, the result of a cost-plus-commission contract is regarded as can be evaluated reliably: there is great possibility that the financial benefit in relation with the contract will inflow, the actual costs may be identified and measured clearly and reliably.
3) Contract progress is recognized at the ratio of accumulative actual cost on the predicted complete cost.
4) In case the expected total cost is greater than the total income, the expected loss will be recognized as expense of the current period. If the construction is in process, the balance is accounted as inventory impairment provision; if the contract is not executed, the balance is accounted as expected liability.
27. Government allowance
(1) Categories
Government subsidies are divided into asset-related subsidies and income-related subsidies.
(2) Accounting policies
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Monetary government subsidies are measured on actual amount or receivable amount; non-monetary subsidies are measured at fair value; when no fair value is available, measured at named amount.
Asset-related government subsidies are recognized as deferred income, amortized straight to its useful life and recorded into current income account. Those income-related government subsidies used to makeup expenses or losses in succeeding periods are recognized as deferred income and recorded in current income account at the related expenses is recognized; those used to makeup expenses or losses already occurred are recorded into current income account instantly.
28. Deferred income tax asset and deferred income tax liabilities
(1) Basis for recognition of deferred income tax assets
Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be recognized, the difference is between the tax basis and the book value) between book value of the assets or liabilities and the tax basis.
(2) Basis for recognition of deferred income tax liabilities
Deferred income tax liabilities or assets are recognized at proper rate in the term of retrieving the assets or paying the liabilities according to difference (for not recognized assets and liabilities which tax basis can be recognized, the difference is between the tax basis and the book value) between book value of the assets or liabilities and the tax basis.
29. Operational leasing and financial leasing
(1) Accounting of operational leasing
(2) Accounting treatment of financed leasing
(3) Accounting treatment of renting back after sales
30. Sellable assets in possession
(1) Recognition of sellable assets in possession
(2) Accounting treatment of sellable assets in possession
31. Securitilization of asset
32. Hedging instruments
33. Change of main accounting policies and estimations
Is there any material change of accounting policies occurred in the year.
No
(1) Change of accounting policies
Is there any change in accounting policies in the report period
No
(2) Change of accounting estimations
Is there any change in accounting estimations in the report period
No
34. Correction of accounting errors in previous period
Is there any accounting error with previous period found in the report period: No
(1) Retrospective restatement
Is there any retrospective restatement on the accounting error with previous periods done in the report term No
(2) Future adoption method
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Is there any future adoption method applicable to accounting errors with previous periods found in the report period. No
35. Other principal accounting policies, estimations and preparation method of financial statements V. Taxation
1. Main categories and rates of taxes
||||
|-|-|-|
|Class of tax|Tax basis|Tax rate|
|VAT|sales of goods or providing of taxable labor service|17%|
|Operational tax|Taxable turnover|5%|
|City maintenance and|||
||Turnover tax payable|7%|
|construction tax|||
|||15%、|
|Enterprise income tax|Amount of income taxable||
|||25%[Note]|
||For those on price basis, taxes are paid at 1.2% of the balance of original||
|Property tax|value of the property after deducting of 30%; for those on rental basis, taxes|1.2%、12%|
||are paid at 12% of the rental.||
|Education surtax|Turnover tax payable|3%|
|Local education|||
||Turnover tax payable|2%|
|surcharges|||

Income tax rate applicable to branches and factories.
[Note] Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. is a subsidiary incorporated in Indonesia. It is subject to local tax regulations.
The Company and its subsidiaries– Hangzhou Zhongneng Steam Turbine Power Co., Ltd., Hangzhou Steam Turbine Casting Co., Ltd., Zhejiang Huayuan Steam Turbine Machinery Co., Ltd., and Hangzhou Guoneng Steam Turbine Engineering Co., Ltd. are subject to15% of tax, and the rest of subsidiaries (domestic) are subject to25% of tax.
2. Preferential tax and approving documents
(1) According to the document “Notice for Qualification of 1125 Enterprises as High-tech Enterprises”(浙科发高〔2011〕263号) issued by Zhejiang Department of Science and Technology, Zhejiang Department of Finance, Zhejiang National Tax Bureau, and Zhejiang Local Tax Bureau, the Company and Hangzhou Zhongneng Steam Turbine Power Co., Ltd.– subsidy of the Company, were qualified as high-tech enterprises for term of three years. Therefore we enjoy15% of tax for 2011-2013.
(2) According to thedocument浙科发高〔2013〕294号 titled “Notice for Recognition of 491 High-tech Enterprises” issued jointly by Zhejiang Bureau of Science and Technology, Zhejiang Bureau of Finance, Zhejiang National Tax Bureau, and Zhenjiang Local Tax Bureau, Hangzhou Steam Turbine Casting Co., Ltd. was recognized as a High-Tech Enterprise, therefore enjoys15% of income tax rate from 2013 to 2015.
(3) According todocument浙科发高[2011]262号 issued by Zhejiang Department of Science and Technology, Zhejiang Huayuan Steam Turbine Machinery Co., Ltd. and Hangzhou Guoneng Steam Turbine Engineering Co., Ltd. were recognized as High-tech Enterprises of 2011. Hangzhou Steam Turbine Auxiliary Machinery Co., Ltd. are enjoying the preferential tax rate of15% for the years 2011-2013.
3. Other remarks: No
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 VI. Enterprise Merger and Consolidating of Financial Statements
1. Particulars of the subsidiaries
(1) Subsidiaries obtained through incorporation or investment
In RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance of the owners’|
||||||||||||||equity of parent co.|
||||||||Balance of|||||Amount for||
||||||||||||||after deducting of the|
||||||||other items|||||deducting minor||
||||||||||||||exceeding part of|
||||||||actually|Share|Portion||Minor|shareholder’s||
|Full name of the|Ownership of||Business|Registered||期末实际|||||||minority shareholders’|
|||Reg. Add.|||Business Scope||formed net|proportion|of voting|Consolidated?|shareholders’|equity in the||
|subsidiary|the subsidiary||property|capital||Investment|||||||share of loss over the|
||||||||investment in|%|rights||equity|minor||
||||||||||||||share of minority|
||||||||the|||||shareholder’s||
||||||||||||||shareholders in the|
||||||||subsidiaries|||||equity||
||||||||||||||owners’ equity at|
||||||||||||||beginning of year|
|Zhejiang Steam||||||||||||||
||||||Development of electrical &|||||||||
|Turbine Packaged||||||||||||||
||Controlled|Hangzhou|||mechanical equipment cotrol|||||||||
|Technology|||Manufacturing|51 mil||29,800,389.56||70.86%|70.86%|Yes|23,786,794.73|||
||subsidiaries|Zhejiang|||unit and technical consulting|||||||||
|Development Co.,||||||||||||||
||||||service|||||||||
|Ltd.||||||||||||||
||||||Designing and manufacturing|||||||||
||||||of steam turbines and|||||||||
|Hangzhou||||||||||||||
||||||supplementary equipment and|||||||||
|Zhongneng Steam|Controlled|Hangzhou||||||||||||
||||Manufacturing|92.5 mil|parts; sales of the Company’s|27,644,475.06||60.83%|60.83%|Yes|107,542,255.01|||
|Turbine Power Co.,|subsidiaries|Zhejiang||||||||||||
||||||products; contracting and|||||||||
|Ltd.||||||||||||||
||||||consulting of mid-small size|||||||||
||||||power plants|||||||||
||||||Manufacturing of cast iron and|||||||||
|Hangzhou Steam|||||steel products; installation and|||||||||
||Controlled|Hangzhou||||||||||||
|Turbine Casting|||Manufacturing|22 mil|maintenance of casting|11,220,000.00||51.00%|51.00%|Yes|84,589,102.41|||
||subsidiaries|Zhejiang||||||||||||
|Co., Ltd.|||||equipments; sales of the|||||||||
||||||Company’s products|||||||||
|Hangzhou Steam|||||Manufacturing and processing|||||||||
|Turbine Machinery|Controlled|Hangzhou|||of steam turbine auxiliary parts|||||||||
||||Manufacturing|30 mil||7,968,000.00||52.00%|52.00%|Yes|56,533,317.89|||
|& Equipment Co.,|subsidiaries|Zhejiang|||and other machinery auxiliary|||||||||
|Ltd.|||||parts|||||||||
|Hangzhou Steam||||||||||||||
||Controlled|Hangzhou|||Manufacturing of auxiliary|||||||||
|Turbine Auxiliary|||Manufacturing|80 mil||46,286,513.41||87.53%|87.53%|Yes|30,596,480.16|||
||subsidiaries|Zhejiang|||equipment of steam turbine|||||||||
|Machine Co., Ltd.||||||||||||||
||||||Steam turbine, gas turbine,|||||||||
||||||generator, gear box, boiler, air|||||||||
||||||cooler, condensator, power|||||||||
|Zhejiang Turbine|||||plant auxiliary equipment,|||||||||
||Fully-owned|Hangzhou||||||||||||
|Import & Export|||Commerce|20 mil|water turbine, air compressor,|20,000,000.00||100.00%|100.00%|Yes||||
||subsidiary|Zhejiang||||||||||||
|Co., Ltd.|||||fan, controlling equipment,|||||||||
||||||spare parts, and materials.|||||||||
||||||Sales and assembling of the|||||||||
||||||above, import and export.|||||||||
|Hangzhou Steam|||||Production: rotator machinery|||||||||
||Fully-owned|Hangzhou||RMB360||||||||||
|Turbine Heavy|||Manufacturing||including steam turbines, gas|360,000,000.00||100.00%|100.00%|Yes||||
||subsidiary|Zhejiang||mil||||||||||
|Industry Co., Ltd.|||||turbines, compressors, and|||||||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||auxiliary equipment; Service:||||||
||||||technical developing and after||||||
||||||service of steam turbines, gas||||||
||||||turbines, compressors;||||||
||||||Wholesaling: steel,||||||
||||||construction materials||||||
|Xinjiang Taifeng|||||Technical promotion and||||||
|Hangzhou Steam|Holding||||interchange service;||||||
|Turbine Packaged|subsidiary of|Wulumuqi|||production, installation,||||||
||||Manufacturing|20 mil||10,200,000.00|51.00%|51.00%|Yes|9,158,692.94|
|Technologies|Packaged|Xinjiang|||maintaining, and selling of||||||
|Development Co.,|Tech Co.||||compressors, steam turbines||||||
|Ltd.|||||and auxiliary equipment||||||
||||||Designing of cooling and||||||
||||||depressurizing equipment and||||||
|Hangzhou|||||accessories; manufacturing||||||
||Holding||||||||||
|Pangtong|||||(assembling only): cooling and||||||
||subsidiary of|Hangzhou|||||||||
|Electronic|||Manufacturing|1 mil|depressurizing equipment;|700,000.00|70.00%|70.00%|Yes|557,988.98|
||Zhongneng|Zhejiang|||||||||
|Equipment Co.,|||||wholesale and retailing:||||||
||Co.||||||||||
|Ltd.|||||cooling and depressurizing||||||
||||||equipment and related||||||
||||||equipment||||||
||||||Sales, technical consulting,||||||
|Shijiazhuang|Holding||||||||||
||||||service, adjusting, and||||||
|Hangneng Steam|subsidiary of|Shijiazhuang|Service||||||||
|||||3 mil|maintaining of steam turbines|1,200,000.00|60.00%|60.00%|Yes|1,007,952.14|
|Turbine Technical|Zhongneng|Hebei|industry||||||||
||||||and auxiliary facilities and||||||
|Services Co., Ltd.|Co.||||||||||
||||||parts||||||
||||||Installation, testing, and||||||
||||||technical consulting of steam||||||
|Kunming|Holding||||||||||
||||||turbines, electric generators,||||||
|Hangzhong Steam|subsidiary of|Kunming|Service||||||||
|||||1.2 mil|and power equipment; sales of|720,000.00|60.00%|60.00%|Yes|745,386.97|
|Turbine Technical|Zhongneng|Yunnan|industry||||||||
||||||parts of steam turbine, electric||||||
|Service Co., Ltd.|Co.||||||||||
||||||generator, and power||||||
||||||equipment||||||
||||||Sales of steam turbines, steam||||||
|Wulumuqi|||||machine, generator set, and||||||
||Holding||||||||||
|Hangzhongneng|||||parts; developing, promotion,||||||
||subsidiary of|Wulumuqi|Service||||||||
|Steam Turbine||||3 mil|service of energy-saving|1,800,000.00|60.00%|60.00%|Yes|1,065,248.55|
||Zhongneng|Xinjiang|industry||||||||
|Technical Service|||||technologies, maintaining,||||||
||Co.||||||||||
|Co., Ltd.|||||reconstruction of high-tech||||||
||||||products||||||
||||||Technical service, installation,||||||
|Tangshan|Holding||||||||||
||||||and maintaining of steam||||||
|Hangneng Steam|subsidiary of|Tangshan|Service||||||||
|||||2 mil|turbines; sales of steam turbine|1,200,000.00|60.00%|60.00%|Yes|726,065.34|
|Turbine Technical|Zhongneng|Hebei|industry||||||||
||||||and auxiliary equipment, and||||||
|Service Co., Ltd.|Co.||||||||||
||||||parts||||||
||||||Steam turbine and auxiliary||||||
||||||equipment, spare parts, testing,||||||
||||||repairing, technical||||||
|Jilin|Holding||||||||||
||||||consultancy and service;||||||
|Hangzhongneng|subsidiary of||Service||||||||
|||Jilin||2 mil|design of electro-mechanical|1,200,000.00|60.00%|60.00%|Yes|816,069.26|
|Steam Turbine Tech|Zhongneng||industry||||||||
||||||projects, chemical projects,||||||
|Service Co., Ltd.|Co.||||||||||
||||||environment projects;||||||
||||||installation of chemical||||||
||||||equipment and||||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||electro-mechanical equipment||||||
||||||Installation, repairing,||||||
|Guangxi|Holding||||||||||
||||||technical reconstruction,||||||
|Hangzhongneng|subsidiary of|Nanning|Service||||||||
|||||2 mil|technical service, of steam|1,200,000.00|60.00%|60.00%|Yes|678,046.80|
|Steam Turbine Tech|Zhongneng|Guangxi|industry||||||||
||||||turbine; sales of steam turbine||||||
|Service Co., Ltd.|Co.||||||||||
||||||parts||||||
||||||Development of steam turbine;||||||
||||||sales, installation, testing,||||||
||Holding||||||||||
|Chengdu|||||maintainance, technical||||||
||subsidiary of|Chengdu|Service||||||||
|Zhongneng Tech||||2 mil|consultancy and service of|1,200,000.00|60.00%|60.00%|Yes|549,914.35|
||Zhongneng|Sichuan|industry||||||||
|Co., Ltd.|||||machinery, chemical products||||||
||Co.||||||||||
||||||(exclude hazard products), and||||||
||||||steam turbine||||||
||Holding||||Technical consultancy,||||||
|Luoyang Hangqi|||||||||||
||subsidiary of|Luoyang|Service||installation, maintainance of||||||
|Steam Turbine Tech||||2 mil||1,200,000.00|60.00%|60.00%|Yes|859,146.27|
||Zhongneng|Henan|industry||steam turbine; sales of steam||||||
|Service Co., Ltd.|||||||||||
||Co.||||turbine and parts||||||
||||||Production of boilers and||||||
||||||products; design and technical||||||
|Hangzhou|Subsidiary of||||service of boiler, boiler parts,||||||
|||Hangzhou|||||||||
|Hangqilun Boiler|Zhongneng||Manufacturing|20 mil|pressure tanks, energy|1,000.00|50.00%||Yes|9,680,506.08|
|||Zhejiang|||||||||
|Co., Ltd.|Co.||||products, environment||||||
||||||protection products; whole sale||||||
||||||and retailing of boilers;||||||
|Hangzhou|Holding||||||||||
|||||Indonesia|Industrial activities, production||||||
|Zhongneng Steam|subsidiary of||||||||||
|||Indonesia|Manufacturing|Rupiah 24|of steam turbine and industrial|10,750,075.00|70.00%|70.00%|Yes|3,463,451.09|
|Turbine Power Co.,|Zhongneng||||||||||
|||||bil.|boilers||||||
|Ltd.|Co.||||||||||
||Holding||||||||||
|Hangzhou Kaineng||Hangzhou|||||||||
||subsidiary of||Manufacturing|2 mil|Cast,forge materials|2,000,000.00|100.00%|100.00%|Yes||
|Forge Co., Ltd.||Zhejiang|||||||||
||Casting Co.||||||||||
|Zhejiang Huayuan|Holding||||||||||
|Steam Turbine|subsidiary of|Huzhou|||Manufacturing and processing||||||
||||Manufacturing|21 mil||15,750,000.00|75.00%|75.00%|Yes||
|Machinery Co.,|the Machinery|Zhejiang|||of steam turbine parts||||||
|Ltd.|Co.||||||||||
||||||Production: steam turbine||||||
|Hangzhou Guoneng|Holding||||auxiliary machine; Service:||||||
|Steam Turbine|subsidiary of|Hangzhou|||assembling, designing,||||||
||||Manufacturing|40 mil||30,000,000.00|75.00%|75.00%|Yes||
|Engineering Co.,|the Auxiliary|Zhejiang|||installation, and technical||||||
|Ltd.|Machine Co.||||consulting of packaged thermal||||||
||||||power projects||||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Supplementary remarks on subsidiaries obtained through incorporation or investment
Not applicable
2. Change of consolidation range
Not applicable
3. Exchange rate of main accounts of overseas businesses
At preparing of the consolidated statements, the asset and liability items in the balance sheet of Hangzhou Zhongneng Steam Turbine Power (Indonesia) Co., Ltd. are translated basing on the exchange rate of the balance sheet date;Owners’ equities other than Retained Profit are translated at the exchange rate of the date when the trade happened. Income and expense items in the income statement are translated at the similar rate of the date when the trade happened. Differences generated by the above translating of foreign currencies are demonstrated separately under theowners’ equity in the balance sheet.
VII. Notes to Items in the Consolidated Financial Statements
1. Monetary capital
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Items|Amount of foreign|Exchange||Amount of foreign|Exchange||
||||Amount RMB|||Amount RMB|
||currency|rate||currency|rate||
|Cash:|--|--|570,034.52|--|--|641,950.41|
|RMB|--|--|570,034.52|--|--|608,406.82|
|USD|||||||
|Indonesia|||||||
|||||67,087,185.00|0.0005|33,543.59|
|Rupiah|||||||
||||||--||
|Bank account:|--|--|747,858,317.41|--|--|810,286,694.06|
|RMB|--|--|692,545,078.14|--|--|770,202,664.56|
|USD|7,097,804.23|6.1528|43,671,369.89|6,525,097.69|6.0969|39,782,868.13|
|JPY|3,460.00|0.0608|210.44|3,460.00|0.0578|199.99|
|EURO|33,528.71|8.3946|281,460.08|6.67|8.4189|56.15|
|HKD||||||0.00|
|Indonesia|||||||
||22,720,397,720.00|0.0005|11,360,198.86|601,810,455.00|0.0005|300,905.23|
|Rupiah|||||||
|Other|||||||
|monetary|--|--|22,902,449.63|--|--|72,212,923.70|
|capital|||||||
|RMB|--|--|22,902,449.63|--|--|72,212,923.70|
|Total|--|--|771,330,801.56|--|--|883,141,568.17|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 2. Transactional financial assets
Not applicable
3. Notes receivable
(1) Categories of notes receivable
In RMB
||||
|-|-|-|
|Categories|End of term|Beginning of term|
|Bank acceptance|770,012,220.25|920,551,630.68|
|Commercial acceptance|7,500,000.00|923,030.00|
|Total|777,512,220.25|921,474,660.68|

 (2) Notes receivable under pledge
In RMB
||||||
|-|-|-|-|-|
|Issuer|Date of issue|Expired on|Amount|Note|
|Rizhao Steel & Iron Rolling Co., Ltd.|||||
||October 29, 2013|April 29, 2014|5,000,000.00||
|Shanxi Xinbang Trade Co., Ltd.|December 25 2013|June 16 2014|10,000,000.00||
|Shenyang Turbine Machinery Co., Ltd.|November 26, 2013|May 26, 2014|10,000,000.00||
|Total|--|--|25,000,000.00|--|

(3) Notes converted to receivable accounts due to failure of the issuer, and notes endorsed to another party but not due yet at the end of report period
Not applicable
Notes endorsed to other parties but not due
In RMB
||||||
|-|-|-|-|-|
|Issuer|Date of issue|Due date|Amount|Note|
|Shenyang Turbine Machinery Co., Ltd.|Jan 6 2014|Jul 6 2014|10,000,000.00||
|Hangzhou Hangyang Holdings Co., Ltd.|Apr 30 2014|Oct 30 2014|10,000,000.00||
|Xi’an Shanggu Power Co., Ltd.|Feb 25 2014|Aug 25 2014|6,423,900.00||
|Xi’an Shanggu Power Co., Ltd.|Mar 26 2014|Sept 26 2014|5,000,000.00||
|Xi’an Shanggu Power Co., Ltd.|Apr 18 2014|Oct 18 2014|5,000,000.00||
|Total|--|--|36,423,900.00|--|

4. Dividend receivable
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 5. Account receivable
(1) Account receivable presented on categories
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of term||||Beginning of term||||
|Categories|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Receivables provided bad debt provision in groups|||||||||
|Group by age analysis|2,646,338,724.88|98.77%|512,207,974.55|19.36%|2,573,237,853.86|98.73%|457,072,732.85|17.76%|
|Sub-total of group|2,646,338,724.88|98.77%|512,207,974.55|19.36%|2,573,237,853.86|98.73%|457,072,732.85|17.76%|
|Account receivable with|||||||||
|minor individual amount|||||||||
||33,020,480.19|1.23%|33,020,480.19|100.00%|33,020,480.19|1.27%|33,020,480.19|100.00%|
|but bad debt provision is|||||||||
|provided|||||||||
|Total|2,679,359,205.07|--|545,228,454.74|--|2,606,258,334.05|--|490,093,213.04|--|

 Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
Account receivable in the portfolio which are provided bad debt provision on age basis
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Age|Book balance||Bad debt|Book balance||Bad debt|
||Amount|Proportion|provision|Amount|Proportion|provision|
|within 1 year|||||||
|In which:|--|--|--|--|--|--|
|Subtotal of within|||||||
||1,342,118,551.21|50.72%|67,244,077.57|1,472,034,979.92|57.21%|73,601,749.00|
|1 year|||||||
|1-2 years|643,677,601.76|24.32%|128,735,520.35|552,657,917.48|21.48%|110,531,583.50|
|2-3 years|400,485,832.57|15.13%|160,194,333.03|280,937,867.60|10.91%|112,375,147.04|
|Over 3 years|260,056,739.34|9.83%|156,034,043.60|267,607,088.86|10.40%|160,564,253.31|
|3-4 years|120,469,994.60|4.55%|72,281,996.76|120,358,324.45|4.68%|72,214,994.67|
|4-5 years|55,292,766.78|2.09%|33,175,660.06|89,445,952.70|3.48%|53,667,571.62|
|over 5 yrs|84,293,977.96|3.19%|50,576,386.78|57,802,811.71|2.24%|34,681,687.03|
|Total|2,646,338,724.88|--|512,207,974.55|2,573,237,853.86|--|457,072,732.86|

 Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
In RMB
||||||
|-|-|-|-|-|
|Description of the receivable accounts|Book balance|Bad debt provision|Rate|Reason to provide|
|17 entities including MBDL power station in India|33,020,480.19|33,020,480.19|100.00%|Hard to recover|
|Total|33,020,480.19|33,020,480.19|--|--|

 (2) Receivable accounts written back or retrieved in the report period
Not applicable
(3) Receivable accounts actually written off in the report period
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (4) Particulars about the receivable accounts due from shareholders with5% or over of theCompany’s shares
In RMB
||||||
|-|-|-|-|-|
||End of term||Beginning of term||
|Name of the companies|Book|Bad debt provision|Book|Bad debt provision|
||balance|provided|balance|provided|
|Hangzhou Steam Turbine Power|||||
||459,000.00|220,400.00|691,500.00|226,800.00|
|Group Co., Ltd.|||||
|Total|459,000.00|220,400.00|691,500.00|226,800.00|

 (5) Top 5 debtors in the receivable accounts
In RMB
||||||
|-|-|-|-|-|
|Name of the|Relation with the|||Percentage in total|
|||Amount|Ages||
|companies|Company|||receivables|
|Client I|Non-related|734,306,431.32|over 1-3 years|27.41%|
|Client II|Non-related|351,384,981.08|over 1-3 years|13.11%|
|Client III|Non-related|126,596,000.00|1-2 years|4.72%|
|Client IV|Non-related|39,780,000.00|within 1 year|1.48%|
|Client V|Non-related|32,760,000.00|within 1 year|1.22%|
|Total|--|1,284,827,412.40|--|47.94%|

 (6) Account due from related parties
In RMB
|||||
|-|-|-|-|
||Relation with the||Percentage in total|
|Name of the companies||Amount||
||Company||receivables|
||Shares held by the|||
|Greenesol Co. (India)||12,621,050.25|36.58%|
||Company|||
|Hangzhou Steam Turbine Power Technologies||||
||Affiliate of the Group|3,939,071.38|11.41%|
|Co., Ltd.||||
|Hangzhou Hangfa Power Generating Equipment||||
||Affiliate of the Group|8,611,380.69|24.96%|
|Co., Ltd.||||
|Hangzhou Steam Turbine Engineering Co., Ltd.|Affiliate of the Group|7,321,355.99|21.22%|
|HSTG Packaged Equipment Co., Ltd.|Affiliate of the Group|2,007,560.00|5.82%|
|Hangzhou Nanfangtongda Gears Co., Ltd.|Affiliate of the Group|4,434.00|0.01%|
|Hangzhou Steam Turbine Automobile Sales||||
||Affiliate of the Group|316.86||
|Service Co., Ltd.||||
|Total||34,505,169.17|100|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 6. Other account receivable.
(1) Other receivable account on categories
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of term||||Beginning of term||||
|Categories|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Other receivables provided bad debt provision in groups|||||||||
|Group by age analysis|40,956,706.08|91.69%|4,308,523.54|10.52%|35,520,308.28|90.54%|4,220,670.78|11.88%|
|Sub-total of group|40,956,706.08|91.69%|4,308,523.54|10.52%|35,520,308.28|90.54%|4,220,670.78|11.88%|
|Other account receivable|||||||||
|with minor individual|||||||||
||3,710,320.94|8.31%|3,710,320.94|100.00%|3,710,320.94|9.46%|3,710,320.94|100.00%|
|amount but bad debt|||||||||
|provision is provided|||||||||
|Total|44,667,027.02|--|8,018,844.48|--|39,230,629.22|--|7,930,991.72|--|

 Other receivable accounts with major single amount and bad debt provision drawn upon them
Not applicable
Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
In RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Age|Book balance||Bad debt|Book balance||Bad debt|
||Amount|Proportion|provision|Amount|Proportion|provision|
|within 1 year|||||||
|In which:|||||||
|Subtotal of within 1|||||||
||32,714,513.66|79.88%|1,624,384.51|26,836,337.77|75.55%|1,341,816.89|
|year|||||||
|1-2 years|4,404,843.09|10.75%|880,968.62|5,088,625.18|14.33%|1,017,725.04|
|2-3 years|2,496,195.93|6.09%|998,478.37|1,480,391.73|4.17%|592,156.69|
|Over 3 years|1,341,153.40|3.27%|804,692.04|2,114,953.60|5.95%|1,268,972.16|
|3-4 years|197,199.80|0.48%|118,319.88|1,213,800.00|3.42%|731,280.00|
|4-5 years|250,800.00|0.61%|150,480.00|59,000.00|0.17%|35,400.00|
|over 5 yrs|893,153.60|2.18%|535,892.16|842,153.60|2.37%|502,292.16|
|Total|40,956,706.08|--|4,308,523.54|35,520,308.28|--|4,220,670.78|

 Other receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis Not applicable
Other receivable accounts in the portfolio on which bad debt provision are provided on other basis
Not applicable
Other receivable accounts with minor amount but were provided bad debt provisions individually at end of
period
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 In RMB
||||||
|-|-|-|-|-|
|Description of other|Book balance||||
|||Bad debt provision|Rate|Reason to provide|
|receivables|||||
|Customs deposit|3,710,320.94||||
|||3,710,320.94|100.00%|Hard to recover|
|receivable|||||
|Total|3,710,320.94|3,710,320.94|--|--|

(2) Other receivable accounts written back or retrieved in the report period
Not applicable
Bad debt provisions on other receivable accounts with single large amount or minor amount but tested individually at end of report period
In RMB
||||||
|-|-|-|-|-|
|Description of the|||||
||Book balance|Amount of bad debt|Rate|Reason|
|receivable accounts|||||
|Customs deposit|||||
||3,710,320.94|3,710,320.94|100.00%|Hard to recover|
|receivable|||||
|Total|3,710,320.94|3,710,320.94|--|--|

(3) Other receivable accounts actually written off in the report period
Not applicable
(4) Particulars about the other receivable accounts due from shareholders with5% or over of theCompany’s shares in the report period
Not applicable
(5) Natures or contents of other receivable accounts with large amount
Not applicable
(6) Top 5 debtors of other receivable accounts
In RMB
||||||
|-|-|-|-|-|
||Relation with the|||Percentage in total of other|
|Name of the companies||Amount|Ages||
||Company|||receivables|
||||within 1||
|Hangzhou Custom|Non-related|8,333,430.78||18.66%|
||||year||
|Customs deposit receivable|Non-related|3,710,320.94|over 5 yrs|8.31%|
||||within 5||
|Guodian Trust Bidding Co., Ltd.|Non-related|2,966,800.00||6.64%|
||||yrs||
||||within 1||
|Beijing Huadian Bidding Co., Ltd.|Non-related|2,100,000.00||4.70%|
||||year||
|Zhejiang Chenggang Investment &|||within 1||
||Non-related|1,174,601.28||2.63%|
|Development Co., Ltd.|||year||
|Total|--|18,285,153.00|--|40.94%|

 (7) Other accounts receivable from related parties
Not applicable
7. Prepayment
(1) Prepayment presented by ages:
In RMB
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||||
|-|-|-|-|-|
||End of term||Beginning of term||
|Age|||||
||Amount|Proportion|Amount|Proportion|
|within 1 year|258,301,238.24|98.17%|180,881,123.19|81.85%|
|1-2 years|1,666,248.00|0.63%|36,324,675.54|16.44%|
|2-3 years|1,418,109.20|0.54%|1,985,200.20|0.90%|
|Over 3 years|1,727,370.16|0.66%|1,811,419.46|0.81%|
|Total|263,112,965.60|--|221,002,418.39|--|

 (2) Top 5 receivers of prepayments
In RMB
||||||
|-|-|-|-|-|
|Name of the companies|Relation with the Company|Amount|Date|Reason of unsettled|
|Client I|Affiliate of the Group|29,075,825.00|1-3 years|In schedule as the contract|
|Client II|Non-related|26,705,691.60|within 1 year|In schedule as the contract|
|Client III|Non-related|25,784,804.38|within 1 year|In schedule as the contract|
|Client IV|Non-related|16,950,000.00|1-2 years|In schedule as the contract|
|Client V|Non-related|12,462,020.00|within 1 year|In schedule as the contract|
|Total|--|110,978,340.98|--|--|

(3) Prepayment received by shareholding parties holding5% or above of theCompany’s shares in the report period
Not applicable
(4) Remarks on prepayment: payment made according to the contract
8. Inventories
(1) Categories of inventory
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Raw materials|396,691,900.28||396,691,900.28|387,687,751.95||387,687,751.95|
|Product in process|612,854,498.97||612,854,498.97|687,934,341.77||687,934,341.77|
|Products in stock|773,994,624.54|158,244.58|773,836,379.96|447,198,419.30|158,244.58|447,040,174.72|
|Material in|||||||
||1,180.00||1,180.00||||
|circulation|||||||
|Total|1,783,542,203.79|158,244.58|1,783,383,959.21|1,522,820,513.02|158,244.58|1,522,662,268.44|

(2) Inventory impairment provision
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 In RMB
|||||||
|-|-|-|-|-|-|
||Opening balanceof book value||Decreased this period||Closing balance of|
|Categories||Provided this term||||
||||Written back|Transferred|book value|
|Products in stock|158,244.58||||158,244.58|
|Total|158,244.58||||158,244.58|

 9. Other current assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Financial instruments of banks|360,000,000.00|318,000,000.00|
|Input tax deductible|58,913.18|513,038.47|
|Prepaid income tax||133,151.82|
|Tax prepaid|1,166.42|854.98|
|Total|360,060,079.60|318,647,045.27|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 10. Long-term equity investment
(1) Details of long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Statement on||Impairment||
|||||||Percentage of|Voting|||||
||Calculating|Investment|Opening|Changed|Closing|||differences between the|Impairment|provision|Cash dividend of|
|Company invested in||||||share in the|power in|||||
||basis|cost|balance|by|balance|||shareholding and voting|provision|provided this|the current term|
|||||||firm %|the firm %|||||
|||||||||rights||term||
|Zhejiang Tianhang||||||||||||
|Steam Turbine||||||||||||
||Cost basis|10,000,000.00|10,000,000.00||10,000,000.00|33.33%|33.33%||||1,000,000.00|
|Auxiliary Machinery||||||||||||
|Co., Ltd.||||||||||||
|Zhejiang Sanxin||||||||||||
|Automatic Engineering|Cost basis|600,000.00|600,000.00||600,000.00|6.00%|6.00%|||||
|Co., Ltd.||||||||||||
|Greenesol Co. (India)|Cost basis|5,534,773.22|5,534,773.22||5,534,773.22|37.00%|37.00%|||||
|Bank of Hangzhou Co.,||||||||||||
||Cost basis|390,954,040.00|390,954,040.00||390,954,040.00|6.92%|6.92%||||23,118,640.00|
|Ltd.||||||||||||
|Hangzhou Steam||||||||||||
|Turbine Engineering|Cost basis|30,000,000.00|30,000,000.00||30,000,000.00|15.00%|15.00%|||||
|Co., Ltd.||||||||||||
|Hangzhou Changdi||||||||||||
|Equity Investment||||||||||||
||Cost basis|20,261,013.65|20,261,013.65||20,261,013.65|2.97%|2.97%|||||
|Partnership (limited||||||||||||
|liability)||||||||||||
|Zhejiang Zhongkong||||||||||||
|Solar Energy|Cost basis|15,000,000.00|15,000,000.00||15,000,000.00|4.20%|4.20%|||||
|Technologies Co., Ltd.||||||||||||
|Total|--|472,349,826.87|472,349,826.87||472,349,826.87|--|--|--|||24,118,640.00|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 11. Fixed assets
(1) Particulars of fixed assets
In RMB
|||||||
|-|-|-|-|-|-|
||Opening balance of|||Decreased this|Closing balance of book|
|Items||Increased this period||||
||book value|||period|value|
|I. Total of original book||||||
||1,349,549,137.71|8,964,365.34||6,705,874.93|1,351,807,628.12|
|value||||||
|Incl. House & Buildings|383,657,274.34|||882,701.00|382,774,573.34|
|Equipment &||||||
||841,967,927.85|4,824,513.04||3,370,886.43|843,421,554.46|
|machinery||||||
|Office equipment|123,923,935.52|4,139,852.30||2,452,287.50|125,611,500.32|
||Opening balance of|Increased|Provided current|Decreased this|Balance at end of|
|--||||||
||book value|this term|term|period|current term|
|II. Total of accumulative||||||
||727,697,948.87||45,885,130.06|4,509,983.39|769,073,095.54|
|depreciation||||||
|Incl. House & Buildings|139,040,885.59||5,532,979.85||144,573,865.44|
|Equipment &||||||
||505,456,666.50||35,942,891.97|3,604,207.42|537,795,351.05|
|machinery||||||
|Office equipment|83,200,396.78||4,409,258.24|905,775.97|86,703,879.05|
||Opening balance of||||Balance at end of|
|--||--||||
||book value||||current term|
|III. Total of net book value||||||
||621,851,188.84|--|||582,734,532.58|
|of fixed assets||||||
|Incl. House & Buildings|244,616,388.75|--|||238,200,707.90|
|Equipment &||||||
||336,511,261.35|--|||305,626,203.41|
|machinery||||||
|Office equipment|40,723,538.74|--|||38,907,621.27|
|IV. Total of impairment||||||
||12,425,843.32|--|||6,783,153.66|
|provisions||||||
|Incl. House & Buildings|1,504,928.24|--|||1,504,928.24|
|Equipment &||||||
||9,717,548.09|--|||4,074,858.43|
|machinery||||||
|Office equipment|1,203,366.99|--|||1,203,366.99|
|V. Total of fixed asset book|609,425,345.52||||575,951,378.92|
|||--||||
|value||||||
|Incl. House & Buildings|243,111,460.51|--|||236,695,779.66|
|Equipment &||||||
||326,793,713.26|--|||301,551,344.98|
|machinery||||||
|Office equipment|39,520,171.75|--|||37,704,254.28|

 Depreciation of the period was RMB45,885,130.06; transferring of construction-in-process to fixed asset by RMB5,281,685.96.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 12. Construction-in-progress
(1) Particulars of construction-in-process
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Items||Impairment|||Impairment||
||Book balance||Book value|Book balance||Book value|
|||provision|||provision||
|Construction in|||||||
|process under the|||||||
||129,494,119.01||129,494,119.01|122,508,059.62||122,508,059.62|
|parent company (195|||||||
|items)|||||||
|House and plants of|||||||
||40,620,919.77||40,620,919.77|41,721,346.13||41,721,346.13|
|Casting Co. phase III|||||||
|Guoneng Tangxi|||||||
||7,412,861.75||7,412,861.75|1,094,407.75||1,094,407.75|
|workshop phase II|||||||
|Measurement &|||||||
|Physics-chemistry|||||||
|Lab of Zhongneng|||||||
|Co.|||||||
|Prepayment for|||||||
||4,839,005.97||4,839,005.97|1,580,793.10||1,580,793.10|
|equipment or projects|||||||
|Preparation projects|||||||
||512,316.86||512,316.86||||
|under Heavy Industry|||||||
|Total|182,879,223.36||182,879,223.36|166,904,606.60||166,904,606.60|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (2) Material change in construction-in-progress
In RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Including:||||
|||||Transferred||Portion of||Accumulate||Capitalization|||
|||Beginning of|Increased this||Other||||interest||Fund||
|Projects|Budget|||into fixed||investment|Progress|of interest||ratio of current||End of term|
|||term|period||decreases||||capitalized||recourse||
|||||assets||on budget||capitalized||period|||
||||||||||this term||||
|Construction-in-process|||||||under||||||
||157,230,000.00|118,631,518.49|11,825,871.09|963,270.57||82.97%|||||Independent|129,494,119.01|
|under the HQ (195 items)|||||||construction||||||
|Construction completed|||||||||||||
||5,034,400.00|3,876,541.13|85,880.21|3,962,421.34||78.70%|Completed||||Independent||
|under the HQ (51)|||||||||||||
|Preparation projects|||||||under||||||
|||44,814.56|823,496.35|355,994.05|||||||Independent|512,316.86|
|under Heavy Industry|||||||construction||||||
|Construction of new|||||||||||||
||||||||under||||||
|workshops under|20,000,000.00|1,094,407.75|6,318,454.00|||37.06%|||||Independent|7,412,861.75|
||||||||construction||||||
|Guoneng|||||||||||||
|House and plants of|||||||under||||||
||69,500,000.00|41,721,346.13|-1,100,426.36|||58.45%|||||Independent|40,620,919.77|
|Casting Co. phase III|||||||construction||||||
|Prepayment for|||||||under||||||
|||1,580,793.10|3,258,212.87||||||||Independent|4,839,005.97|
|equipment or projects|||||||construction||||||
|Total|251,764,400.00|166,949,421.16|21,211,488.16|5,281,685.96||--|--|||--|--|182,879,223.36|

 (3) Remarks on construction-in-process
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 13. Intangible assets
(1) Profiles of intangible assets
In RMB
||||||
|-|-|-|-|-|
||Opening balance|Increased this|Decreased|Closing balance of|
|Items|||||
||of book value|period|this period|book value|
|I. Total of original book value|247,476,935.33|85,120,193.00||332,597,128.33|
|Land using right|246,958,635.33|85,120,193.00||332,137,128.33|
|Others|460,000.00|||460,000.00|
|II. Total of accumulative|||||
||21,914,827.07|2,464,422.47||24,379,249.54|
|amortizing|||||
|Land using right|21,793,493.81|2,394,422.51||24,187,916.32|
|Others|121,333.26|69,999.96||191,333.22|
|III. Total of book net value of|||||
||225,562,108.26|82,655,770.53||308,217,878.79|
|intangible assets|||||
|Land using right|225,223,441.52|82,725,770.49||307,949,212.01|
|Others|338,666.74|-69,999.96||268,666.78|
|Land using right|||||
|Others|||||
|Total of book value of intangible|225,562,108.26|||308,217,878.79|
|||82,655,770.53|||
|assets|||||
|Land using right|225,223,441.52|82,725,770.49||307,949,212.01|
|Others|338,666.74|-69,999.96||268,666.78|

 Amortized in the report period RMB2,464,422.47.
(2)R&D expenses
In RMB
|||||||
|-|-|-|-|-|-|
||||Decreased this period|||
|||Increased this|Accounted intocurrent incomeaccount|||
|Items|Beginning of term|||Recognized as|End of term|
|||period||||
|||||intangible asset||
|Development and||||||
||7,009,659.34|63,663,569.8|2 67,338,006.92||3,335,222.24|
|research||||||
|Total|7,009,659.34|63,663,569.8|2 67,338,006.92||3,335,222.24|

Percentage of development expense in totalR&D was84.00%.
Intangible asset formed by internalR&D of the period accounted for0.00% of the total book value of intangible
assets.
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 14. Long-term expenses to be amortized
In RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Reason of|
||Beginning of|Increased this|Amortized this||||
|Items||||Other decrease|End of term|other|
||term|term|term||||
|||||||decreasing|
|Redecoration|36,748.58||||36,748.58||
|Total|36,748.58||||36,748.58|--|

 15. Deferred income tax asset and deferred income tax liabilities
(1) Deferred income tax assets and liabilities are not presented as net amount after neutralization
Deferred income tax assets and liabilities already recognized
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Deferred income tax assets:|||
|Asset impairment provision|86,761,695.55|81,272,348.42|
|Unrealized profit in consolidated accounts|6,745,018.06|7,872,349.21|
|Other deductible provisional difference|1,332,753.51|1,332,753.51|
|Sub-total|94,839,467.12|90,477,451.14|
|Deferred income tax liabilities:|||
|Temporary differences of other tax|||
||1,017,473.05|1,017,473.05|
|payables|||
|Sub-total|1,017,473.05|1,017,473.05|

 Details of un-recognized deferred income tax assets
Not applicable
Deductible losses of the un-recognized deferred income tax asset will expire in the following years
Not applicable
Details of taxable differences and deductible differences
In RMB
||||
|-|-|-|
||Amount of temporary differences||
|Items|||
||At end of term|At beginning of term|
|Differences in taxable items|||
|Temporary differences of other tax payables|6,783,153.66|6,783,153.66|
|Sub-total|6,783,153.66|6,783,153.66|
|Neutralizable different items|||
|Bad debt provision|553,247,299.22|497,939,275.94|
|Inventory impairment provision|158,244.58|158,244.58|
|Fixed asset impairment provision|6,783,153.66|12,425,843.32|
|Impairment provision of intangible asset|||
|Unrealized profit in consolidated accounts|44,966,787.06|47,695,840.27|
|Other deductible provisional difference|8,885,023.42|8,885,023.42|
|Sub-total|614,040,507.94|567,104,227.53|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (2) Deferred income tax assets and liabilities are presented as net amount after neutralization
Composition items of income tax asset and liabilities after neutralization
In RMB
||||||
|-|-|-|-|-|
|||Deductible ortaxableprovisionaldifference afternneutralizing at endof report period||Deductible ortaxableprovisionaldifference afterneutralizing at endof report period|
||Deferred income||Deferred income||
||tax asset or||tax asset or||
|Items|liability after||liability after||
||neutralizing at end||eutralizing at end||
||of report period||of report period||
|Deferred income tax asset|94,839,467.12||90,477,451.14||
|Deferred income tax liability|1,017,473.05||1,017,473.05||

Details of deferred income tax asset and liabilities neutralized
Not applicable
16. Detail of asset impairment provision
In RMB
|||||||
|-|-|-|-|-|-|
||Opening balance|Increased this|Decreased this period||Closing balance ofbook value|
|Items||||||
||of book value|period|Written back|Transferred||
|I. Bad debt provision|498,024,204.76|57,809,496.44|2,586,401.98||553,247,299.22|
|II. Inventory|158,244.58||||158,244.58|
|impairment provision||||||
|VII. Fixed asset|12,425,843.32|||5,642,689.66|6,783,153.66|
|impairment provision||||||
|Total|510,608,292.66|57,809,496.44|2,586,401.98|5,642,689.66|560,188,697.46|

 17. Other non-current assets
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Prepayment for land||66,500,000.00|
|Total||66,500,000.00|

 Statement on other non-recurring assets
Prepayment of RMB66.50 million for land-using rights by Heavy Industry.
18. Short-term loans
(1) Categories of short-term loans
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Loan by pledge|10,000,000.00|10,000,000.00|
|Mortgage loan|106,900,000.00|106,900,000.00|
|Guarantee loan|100,000,000.00|100,000,000.00|
|Credit loan|80,000,000.00|160,000,000.00|
|Total|296,900,000.00|376,900,000.00|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 19. Notes payable
In RMB
||||
|-|-|-|
|Categories|End of term|Beginning of term|
|Bank acceptance|72,182,776.00|168,751,198.95|
|Total|72,182,776.00|168,751,198.95|

 RMB30,007,776.00 will due next fiscal period.
20. Account payable
(1) Account payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Trade|935,687,723.06|763,402,630.49|
|Payment for equipment and projects|9,233,161.72|15,038,754.82|
|Total|944,920,884.78|778,441,385.31|

 (2) Account payable to shareholders holding5% or over of theCompany’s shares in the report period In RMB
||||
|-|-|-|
|Name of the companies|End of term|Beginning of term|
|Hangzhou Steam Turbine Power Group|||
||8,631,324.39|5,266,718.60|
|Co., Ltd.|||
|Total|8,631,324.39|5,266,718.60|

 (3) Remarks on large amount payable accounts aged for over one year
Not applicable
21. Accounts received in advance
(1) Advance payment received
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Trade|1,497,299,419.05|1,480,588,499.90|
|Total|1,497,299,419.05|1,480,588,499.90|

 (2) Prepayment collected from shareholders holding5% or over of theCompany’s shares in the report period.
Not applicable
(3) Remarks on large amount advance payment received aged for over one year
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 22. Wage payable
In RMB
||||||
|-|-|-|-|-|
||Opening balance of|Increased this|Decreased this|Closing balance of|
|Items|||||
||book value|period|period|book value|
|I. Wage, bonus,|||||
||30,651,466.25|208,050,513.79|233,327,913.79|5,374,066.25|
|allowances|||||
|II. Employees’ welfare||27,108,335.40|16,426,411.75|10,681,923.65|
|III. Social security|10,430,484.07|52,190,211.37|47,467,692.89|15,153,002.55|
|Incl. Medical insurance|3,423,841.19|22,704,522.94|17,757,145.58|8,371,218.55|
|Basic pension|3,861,213.58|22,338,064.18|22,800,577.54|3,398,700.22|
|Unemployment|||||
||592,184.91|3,097,220.72|3,201,234.05|488,171.58|
|insurance|||||
|Labor injury insurance|174,813.46|924,613.85|948,061.34|151,365.97|
|Breeding insurance|364,201.96|1,828,965.90|1,900,758.78|292,409.08|
|Others|2,014,228.97|1,296,823.78|859,915.60|2,451,137.15|
|IV. Housing fund|273,578.76|23,907,715.94|23,861,178.30|320,116.40|
|V. Dismissing welfare||102,256.40|177,997.10|-75,740.70|
|VI. Others|22,046,070.01|18,173,694.25|7,197,083.83|33,022,680.43|
|Incl. Annual fees|16,099,449.83|9,042,315.76|905,141.67|24,236,623.92|
|Trade Union finance|1,603,818.72|4,528,719.98|4,871,940.47|1,260,598.23|
|Training expenses|4,342,801.46|4,602,658.51|1,420,001.69|7,525,458.28|
|Total|63,401,599.09|329,532,727.15|328,458,277.66|64,476,048.58|

 Trade Union fund and employee training fund were totaled RMB8,786,056.51.
23. Tax payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|VAT|42,841,427.85|37,144,403.03|
|Operational tax|243,060.00|270,524.70|
|Enterprise income tax|26,367,826.81|53,143,683.58|
|Personal income tax|1,952,450.27|9,879,947.49|
|City maintenance and construction tax|2,845,621.18|2,783,816.23|
|Education surtax|1,248,568.66|1,205,531.61|
|Local education surcharges|793,289.37|789,567.91|
|Stamp tax|13,132.90|94,049.34|
|Local water source foundation|2,382,220.55|2,642,286.53|
|Price adjustment foundation|-1,031.67|2,246.57|
|Land using tax|868,205.00||
|Security fund for the disabled|2,012.57||
|Total|79,556,783.49|107,956,056.99|

 24. Interest payable
Not applicable
25. Dividend payable
In RMB
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
|||||
|-|-|-|-|
||||Reason of overdue for one|
|Name of the companies|End of term|Beginning of term||
||||year|
|Hangzhou Steam Turbine Power||||
||95,964,960.00|||
|Group Co., Ltd.||||
|Foreign shares|54,837,120.00|||
|Total|150,802,080.00||--|

26. Other account payable.
(1) Other accounts payable
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|Deposit|3,637,160.00|20,354,387.58|
|Provisional account payable|19,832,765.19|21,835,850.58|
|Others|10,289,150.63|4,751,301.24|
|Total|33,759,075.82|46,941,539.40|

 (2) Other account payable due to shareholders with5% or over of theCompany’s shares in the report period
In RMB
||||
|-|-|-|
|Name of the companies|End of term|Beginning of term|
|Hangzhou Steam Turbine Power Group|||
||1,650,985.53|18,545,102.14|
|Co., Ltd.|||
|Total|1,650,985.53|18,545,102.14|

 (3) Statement on large amount other payable accounts due for over one year: Not applicable
(4) Statement on other receivable accounts with large amount: Not applicable
27. Predicted liabilities: Not applicable
28. Non-current liabilities due in one year
(1) Non-current liabilities due in one year
Not applicable
(2) Long-term loans due in 1 year
Long-term borrowings due in 1 year: Not applicable
Top 5 in amount of long-term borrowings due in 1 year: Not applicable
Overdue loans among the long-term borrowings due in one year: Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 29. Long term payables
(1) Top 5 long-term payables
In RMB
||||||||
|-|-|-|-|-|-|-|
|||Initial|Interest|Interest|Closing||
|Unit|Term|||||Condition|
|||amount|rates|payable|balance||
|Drawing in administrative|||||||
|||330,000.00|||330,000.00||
|restructuring|||||||

30. Other non-current liabilities
In RMB
||||
|-|-|-|
|Items|Closing balance of book value|Opening balance of book value|
|Deferred income (government subsidy)|9,700,985.00|9,700,985.00|
|Others|265,709.00||
|Total|9,966,694.00|9,700,985.00|

 Liability projects involved in government subsidy
In RMB
||||||||
|-|-|-|-|-|-|-|
|||New|||||
||||Amount transferred||||
||Opening|subsidy in||Other|Closing|Asset-related or|
|Liability projects|||to non-operational||||
||balance|current||changes|balance|income-related|
||||income||||
|||period|||||
|Government subsidy|||||||
|for industrial projects|748,280.00||||748,280.00|Asset-related|
|of the 2nd half of 2006|||||||
|Government subsidy|||||||
||148,330.00||||148,330.00|Asset-related|
|for recycling economy|||||||
|10K ton casting line|||||||
||104,000.00||||104,000.00|Asset-related|
|enlarging project|||||||
|Subsidy for industrial|||||||
|upgrading by|960,000.00||||960,000.00|Asset-related|
|provincial government|||||||
|Government subsidy|||||||
||6,898,545.00||||6,898,545.00|Asset-related|
|for casting project|||||||
|Production project|||||||
|subsidy of 2009 of|641,580.00||||641,580.00|Asset-related|
|Yuhang District|||||||
|Subsidy for industrial|||||||
|projects (including|||||||
||200,250.00||||200,250.00|Asset-related|
|transferred from|||||||
|previous years)|||||||
|Total|9,700,985.00||||9,700,985.00|--|

 31. Capital Share
In RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Changed in the report period (+,-)||||||
||Beginning of term|Issuing of new|Bonus|Transferred|Other|Sub-t|End of term|
|||shares|shares|from reserves|s|otal||
|Total of|754,010,400.00||||||754,010,400.00|
|capital shares||||||||

Remarks on change of share capital. If there is change in capital in the report period, name of CPA and No. of
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Verification Report shall be provided; for shareholding companies operated for less than three years, only net asset need to be provided for years before establishing; for shareholding companies transformed from private limited companies, particulars about capital verification shall be provided.
32. Shares in stock
Not applicable
33. Special reserves
Statement on special reserves
According to the document财企〔2012〕16号 issued jointly by the Financial Department and General Bureau of Safety Inspection on February 14, 2012, the Company provided RMB1,689,177.58 of production safety fund, and RMB1,437,650.2 used up in the report period.
34. Capital reserves
In RMB
||||||
|-|-|-|-|-|
||||Decreased this||
|Items|Beginning of term|Increased this period||End of term|
||||period||
|Capital premium (share|||||
||81,815,220.00|||81,815,220.00|
|capital premium)|||||
|Other capital reserves|57,775,125.09|||57,775,125.09|
|Total|139,590,345.09|||139,590,345.09|

 35. Surplus reserves
In RMB
||||||
|-|-|-|-|-|
||||Decreased this||
|Items|Beginning of term|Increased this period||End of term|
||||period||
|Statutory surplus reserves|583,824,678.05|||583,824,678.05|
|Total|583,824,678.05|||583,824,678.05|

 36. Retained profit
In RMB
||||
|-|-|-|
|||Percentage of drawing or|
|Items|Amount||
|||allocation|
|Retained profit adjusted at beginning of year|2,736,802,630.30|--|
|Plus: Net profit attributable to owners of the parent|||
||196,174,851.01|--|
|company|||
|Common share dividend payable|150,802,080.00||
|Others|502.09||
|Retained profit at the end of term|2,782,174,899.22|--|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 37. Operational turnover and cost
(1) Operation incomes and costs
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Major business turnover|1,739,190,751.12|2,011,778,885.16|
|Other business income|4,171,891.15|7,966,945.76|
|Operation cost|1,074,446,850.16|1,350,033,911.16|

 (2) Business segments (on industries)
In RMB
||||||
|-|-|-|-|-|
||Occurred current term||Occurred in previous term||
|Name of industry|||||
||Turnover|Operation cost|Turnover|Operation cost|
|Boiler and power machine|||||
||1,381,442,001.02|853,329,142.93|1,708,584,515.78|1,149,586,834.58|
|manufacture|||||
|Casting|34,577,265.75|24,984,782.08|39,505,854.30|32,916,683.37|
|Petrochemical and other|||||
||49,354,275.47|24,841,494.06|38,590,594.80|27,922,308.08|
|special machineries|||||
|Control panel|2,861,860.88|2,072,932.80|37,732,042.01|33,212,160.45|
|Other special equipment|270,955,348.00|166,711,643.16|187,365,878.27|101,806,677.82|
|Total|1,739,190,751.12|1,071,939,995.03|2,011,778,885.16|1,345,444,664.30|

 (3) Business segments (on products)
In RMB
||||||
|-|-|-|-|-|
||Occurred current term||Occurred in previous term||
|Products or services|||||
||Turnover|Operation cost|Turnover|Operation cost|
|Industrial steam turbine|1,381,442,001.02|853,329,142.93|1,708,584,515.78|1,149,586,834.58|
|Casting products|34,577,265.75|24,984,782.08|39,505,854.30|32,916,683.37|
|Auxiliary machinery|49,354,275.47|24,841,494.06|38,590,594.80|27,922,308.08|
|Control panel|2,861,860.88|2,072,932.80|37,732,042.01|33,212,160.45|
|Others|270,955,348.00|166,711,643.16|187,365,878.27|101,806,677.82|
|Total|1,739,190,751.12|1,071,939,995.03|2,011,778,885.16|1,345,444,664.30|

 (4) Business segments (on regions)
In RMB
||||||
|-|-|-|-|-|
||Occurred current term||Occurred in previous term||
|Name of districts|||||
||Turnover|Operation cost|Turnover|Operation cost|
|Domestic|1,655,955,142.77|1,021,853,436.23|1,791,637,656.67|1,167,089,802.17|
|Overseas|83,235,608.35|50,086,558.80|220,141,228.49|178,354,862.13|
|Total|1,739,190,751.12|1,071,939,995.03|2,011,778,885.16|1,345,444,664.30|

(5) Revenue from top five customers
In RMB
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||
|-|-|-|
|Name of clients|Major business turnover|Portion in total turnover|
|Client I|448,366,121.42|25.72%|
|Client II|103,134,392.29|5.92%|
|Client III|70,000,000.02|4.02%|
|Client IV|43,881,371.78|2.52%|
|Client V|41,120,754.72|2.36%|
|Total|706,502,640.23|40.54%|

 38. Business tax and surcharge
In RMB
|||||
|-|-|-|-|
|||Occurred in previous||
|Items|Occurred current term||Rate|
|||term||
|Operational tax|488,987.28|222,630.24||
|City maintenance and||||
||6,332,862.90|9,964,167.81||
|construction tax||||
|Education surtax|2,898,601.19|4,309,524.69||
|Local education surcharges|1,706,222.57|2,873,016.21||
|Total|11,426,673.94|17,369,338.95|--|

39. Sales expenses
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Employees’ remunerations|26,190,370.61|34,371,309.78|
|Freight|15,768,193.46|25,018,028.28|
|Business trips|9,946,751.67|9,487,436.80|
|Business reception expenses|3,083,101.34|4,985,108.21|
|Conferences|1,471,227.51|2,483,852.99|
|Consulting service fee|5,576,202.81|5,818,257.46|
|Insurance for turbine unit|446,352.77|771,129.83|
|Warranty expense|97,254.34|109,551.60|
|Office expenses|259,147.19|567,960.17|
|Product exhibition|521,582.74||
|Others|4,837,789.75|8,424,819.44|
|Total|68,197,974.19|92,037,454.56|

40. Administrative expenses
In RMB
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Employees’ remunerations|161,065,363.45|114,774,125.81|
|Business reception expenses|6,166,377.83|7,169,139.22|
|Asset depreciation and amortizing|7,032,780.50|8,393,157.73|
|Office expenses|1,632,507.20|2,245,688.30|
|Traveling fees|2,492,300.79|2,901,790.14|
|Taxes|5,464,108.25|6,042,551.13|
|House rental, property management,|||
||4,951,988.06|2,217,251.71|
|water and power|||
|Material, low-value-consumable|1,971,131.66|1,960,586.26|
|Maintaining|1,583,476.71|1,033,557.58|
|Development and research|77,853,332.85|19,757,005.97|
|Others|28,586,096.50|96,199,085.17|
|Total|298,799,463.80|262,693,939.02|

 41. Financial expenses
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Interest expense|10,430,724.17|5,765,360.64|
|Interest income|4,439,655.78|-6,615,273.43|
|Exchange gains/losses|2,268,764.67|1,459,955.49|
|Commission|726,302.24|928,276.52|
|Others|216,351.42|3,735.71|
|Total|9,202,486.72|1,542,054.93|

 42. Investment income
(1) Details of investment gains
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Long-term equity investment gains on cost basis|24,118,640.00|24,118,640.00|
|Investment gains from disposal of long-term equity investment||30,871,804.89|
|Others|9,549,596.76|9,705,623.87|
|Total|33,668,236.76|64,696,068.76|

 (2) Long-term equity investment gains on cost basis
In RMB
|||||
|-|-|-|-|
||Occurred current|Occurred in previous|Causation of|
|Company invested in||||
||term|term|change|
|Bank of Hangzhou Co., Ltd.|23,118,640.00|23,118,640.00||
|Zhejiang Tianhang Steam Turbine Auxiliary||||
||1,000,000.00|1,000,000.00||
|Machinery Co., Ltd.||||
|Total|24,118,640.00|24,118,640.00|--|

43. Asset impairment loss
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|I. Bad debt loss|55,223,094.46|23,595,101.44|
|Total|55,223,094.46|23,595,101.44|

 44. Non-business income
(1) Non-operational income
In RMB
|||||
|-|-|-|-|
||Occurred current|Occurred in previous|Carried to current contingent|
|Items||||
||term|term|gain/loss|
|Total of gains from disposal of||||
||347,178.69|34,710.35|347,012.69|
|non-current assets||||
|Incl. Gains from disposal of fixed||||
||347,178.69|34,710.35|347,012.69|
|assets||||
|Government subsidy|4,003,211.00|2,613,328.00|4,003,211.00|
|Compensation income|7,693,940.02|1,013,600.00|7,693,940.02|
|Account not able to be paid|150,000.00|501,950.00|150,000.00|
|Others||39,102.28||
|Total|12,194,329.71|4,202,690.63|12,194,329.71|

 (2) Government subsidy accounted to current gain/loss account
In RMB
||||||
|-|-|-|-|-|
||Occurred current|Occurred in|Asset-related or|Non-recurring|
|Subsidy titles|||||
||term|previous term|income-related|or recurring|
|Application of general technologies in environmental|||||
|design (including carried down from previous years)||100,000.00|Income related|Yes|
|government subsidy|||||
|The 2nd batch of government subsidy for key development|||||
|||600,000.00|Income related|Yes|
|projects of 2012|||||
|Government award for patents||30,000.00|Income related|Yes|
|Award for best industrial investment and technical|||||
|||20,000.00|Income related|Yes|
|reforming of Hangzhou 2011|||||
|Allowance for internship program 2012||92,852.00|Income related|Yes|
|Allowances (technical R&D)||322,276.00|Income related|Yes|
|Enterprise allowances from Bureau of Finance||1,448,200.00|Income related|Yes|
|Hangzhou Economic Development Zone Bureau of|||||
||206,400.00||Income related|Yes|
|Finance R&D Fund 2012|||||
|Enterprise Funding by Hangzhou Economy & Technology|||||
||1,866,200.00||Income related|Yes|
|Development Zone Finance Office|||||
|Subsidy for college student internship for year 2013 by|||||
||21,671.00||Income related|Yes|
|Hangzhou Bureau of HR and Social Security|||||
|Award for best taxpayer and technical pioneer by Tangxi|||||
||110,000.00||Income related|Yes|
|Government|||||
|Subsidy for patents by Bureau of Science & Technology|27,500.00||Income related|Yes|
|Science & Tech Project Awarding Fund 2014|100,000.00||Income related|Yes|
|Subsidy for R&D 2012|630,000.00||Income related|Yes|
|Subsidy for innovative industrial projects 2013 of|||||
||540,000.00||Income related|Yes|
|Hangzhou|||||
|Award for technical standard 2013|500,000.00||Income related|Yes|
|Other misc. subsidies|1,440.00||Income related|Yes|
|Total|4,003,211.00|2,613,328.00|--|--|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 45. Non-business expenditures
In RMB
|||||
|-|-|-|-|
|||Occurred in previous|Carried to current|
|Items|Occurred current term|||
|||term|contingent gain/loss|
|Incl. Loss from disposal of fixed assets|120,844.93|11,515.55|120,844.93|
|Donations|310,000.00|2,160,000.00|310,000.00|
|Penalty paid out|649,434.40|303,250.00|649,434.40|
|water conservancy special fund|2,353,054.95|2,107,979.65||
|Penalty paid||3,744.99||
|Penalty payment||||
|Others|1,119,317.88|324,605.45|1,119,317.88|
|Total|4,552,652.16|4,911,095.64|2,199,597.21|

 46. Income tax expenses
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Income tax calculated according to the law and|||
||44,486,881.81|49,424,183.76|
|regulations of current term|||
|Adjustment of deferred income tax|-4,812,953.14|-1,743,110.07|
|Total|39,673,928.67|47,681,073.69|

 47. Calculation of basic earning per share and diluted earning per share
||||
|-|-|-|
|(1) Calculation process of basic earning per share|||
|Items|No.|1st half 2014|
|Net profit attributable to common shareholders of the Company|A|196,174,851.01|
|Non-recurring gain/loss|B|14,760,758.65|
|Net profit attributable to common shareholders of the Company after deducting ofnon-recurring gain/loss|C=A-B|181,414,092.36|
|Total of shares at beginning of shares|D|754,010,400.00|
|Shares increased due to capitalizing of reserves or share dividend|E||
|Increasing of shares by issuing of new shares or converting of debt to shares|F||
|Total number of months from the next month of when the shares are increased to theend of report term|G||
|Decrease of shares caused by repurchasing|H||
|Total number of months from the next month of when the shares are decreased to theend of report term|I||
|Amount of shares reduced|J||
|Number of months in the report term|K||
|Weighted average of common shares issued to the outside|L=D+E+F×G/K-H×I/K-J|754,010,400.00|
|Basic earnings per share|M=A/L|0.26|
|Basic earning per share after deducting of non-recurring gain/loss|N=C/L|0.24|

 48. Other miscellaneous income
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Difference of accounting on foreign currency|751,350.27||
|Sub-total|751,350.27||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 49. Notes to the cash flow statement
(1) Other cash inflow related to operation
In RMB
|||
|-|-|
|Items|Amount|
|Deposit interest|4,073,827.69|
|Government subsidies received|4,679,042.27|
|Deposit for bidding and others|320,000.00|
|Compensation income|6,434.94|
|Others|-6,408,389.13|
|Total|2,670,915.77|

 (2) Other cash paid related to operation
In RMB
|||
|-|-|
|Items|Amount|
|Business trips|12,061,008.28|
|Transportation|2,065,151.60|
|Business reception expenses|9,434,011.17|
|Maintaining|692,095.29|
|Property management and civil services|5,354,362.72|
|Deposit for bidding and others|3,490,184.58|
|Office expenses|6,077,175.02|
|Conferences|1,813,704.93|
|Consulting service fee|9,370,140.22|
|Labor service|6,219,851.61|
|International traveling|1,863,051.11|
|Transportation and vehicle using|2,810,707.20|
|Deposit by custom||
|Property insurance|957,752.63|
|Donations|210,000.00|
|Others|33,637,894.39|
|Total|96,057,090.75|

 (3) Other cash received related to investment
In RMB
|||
|-|-|
|Items|Amount|
|Repurchasing of trusteeship|1,063,000,000.00|
|Total|1,063,000,000.00|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (4) Other cash paid related to investment
In RMB
|||
|-|-|
|Items|Amount|
|Purchasing of financial products|1,105,001,561.00|
|Total|1,105,001,561.00|

 (5) Other cash received related to financing
Not applicable
(6) Other cash paid related to financing
Not applicable
50. Supplementary data of cash flow statement
(1) Supplementary data of cash flow statement
In RMB
||||
|-|-|-|
||Amount of the Current|Amount of the Previous|
|Supplementary Info.|||
||Term|Term|
|1. Net profit adjusted to cash flow of business operation|--|--|
|Net profit|227,702,084.64|288,780,620.92|
|Plus: Asset impairment provision|55,223,919.89|23,595,101.44|
|Fixed asset depreciation, gas and petrol depreciation,|||
||40,989,166.35|44,963,810.43|
|production goods depreciation|||
|Amortizing of intangible assets|2,381,540.21|1,824,233.48|
|Amortizing of long-term expenses||47,248.18|
|Loss from disposal of fixed assets, intangible assets, and other|||
||226,573.76|-23,194.80|
|long-term assets (“-“ for gains)|||
|Financial expenses (“-“ for gains)|12,699,488.84|1,542,054.93|
|Investment loss (“-“ for gains)|-33,668,236.76|-64,696,068.76|
|Decrease of deferred income tax asset (“-“ for increase)|-4,362,015.98|15,872,845.09|
|Decrease of inventory (“-“ for increase)|-260,721,690.77|-262,066,033.88|
|Decrease of operational receivable items (“-“ for increase)|52,127,359.71|-297,648,810.82|
|Increase of operational payable items (“-“ for decrease)|27,188,793.83|360,149,391.64|
|Cash flow generated by business operation, net|119,786,983.72|112,341,197.85|
|2. Major investment and financing operation not involving with|||
||--|--|
|cash|||
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|771,330,801.56|731,040,457.61|
|Less: Initial balance of cash|883,141,568.17|1,100,640,580.62|
|Net increasing of cash and cash equivalents|-111,810,766.61|-369,600,123.01|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (2) Information about acquisition or disposal of subsidiaries or businesses
In RMB
||||
|-|-|-|
|Supplementary Info.|Occurred current term|Occurred in previous term|
|I. Acquisition of subsidiaries and businesses|--|--|
|II. Disposal of subsidiaries and businesses|--|--|
|3. Net cash received for disposal of subsidiaries||-2,446,457.95|
|and other businesses|||

(3) Composition of cash and cash equivalents
In RMB
||||
|-|-|-|
|Items|End of term|Beginning of term|
|I. Cash|771,330,801.56|883,141,568.17|
|Incl: Cash in stock|570,034.52|641,950.41|
|Bank savings could be used at any time|747,858,317.41|810,286,694.06|
|Other monetary capital could be used at any|||
||22,902,449.63|72,212,923.70|
|time|||
|III. Balance of cash and cash equivalents at end of|771,330,801.56|883,141,568.17|
|term|||

VIII. Accounting treatment of asset securitization
1. Please state the main trade arrangement, accounting treatment, and bankruptcy isolating terms of capital securitilizing.
2. Entities on which the Company has no control power but undertake the risks
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 IX. Related parties and related transactions
1. Parent companies of the Company
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Legalrepresentative|||Percentage of||Ultimateholder of theCompany||
|||||||||Voting rights|||
|Name of the||Ownership|||Business|Registered|shares of the|||Organization|
||Relationship||Reg. Add.|||||of the parent|||
|parent co.||type|||property|capital|parent company in|||code|
|||||||||company|||
||||||||the Company||||
|Hangzhou||||Nie Zhonghai|||||Hangzhou||
|||Solely|||||||||
|Steam Turbine|Controlling||Hangzhou|||RMB800|||||
|||national|||Manufacturing||63.64%|63.64%|State Asset|14307184-2|
|Power Group|shareholder||China|||mil|||||
|||owned|||||||Committee||
|Co., Ltd.|||||||||||

2. Subsidiaries of the Company
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Ownership of the|Ownership||Legal|Business|Registered|Share|Portion of|Organization|
|Full name of the subsidiary|||Reg. Add.|||||||
||subsidiary|type||representative|property|capital|proportion %|voting rights|code|
|Zhejiang Steam Turbine Packaged|Controlled||Hangzhou|||||||
|||Ltd. liability||Zhen Bin|Manufacturing|51 mil|70.86%|70.86%|72660016-0|
|Technology Development Co., Ltd.|subsidiaries||Zhejiang|||||||
|Hangzhou Zhongneng Steam Turbine Power|Controlled||Hangzhou|||||||
|||Ltd. liability||Ye Zhong|Manufacturing|92.5 mil|60.83%|60.83%|14303396-9|
|Co., Ltd.|subsidiaries||Zhejiang|||||||
||Controlled||Hangzhou|||||||
|Hangzhou Steam Turbine Casting Co., Ltd.||Ltd. liability||Yang Lianrong|Manufacturing|22 mil|51.00%|51.00%|75950245-2|
||subsidiaries||Zhejiang|||||||
|Hangzhou Steam Turbine Machinery &|Controlled||Hangzhou|||||||
|||Ltd. liability||Zhen Bin|Manufacturing|30 mil|52.00%|52.00%|75954585-8|
|Equipment Co., Ltd.|subsidiaries||Zhejiang|||||||
|Hangzhou Steam Turbine Auxiliary Machine|Controlled||Hangzhou|||||||
|||Ltd. liability||Yu Changquan|Manufacturing|80 mil|87.53%|87.53%|76549127-8|
|Co., Ltd.|subsidiaries||Zhejiang|||||||
||Controlled||Hangzhou|||||||
|Zhejiang Turbine Import & Export Co., Ltd.||Ltd. liability||Zhen Bin|Commerce|20 mil|100.00%|100.00%|698284761|
||subsidiaries||Zhejiang|||||||
|Hangzhou Steam Turbine Heavy Industry|Controlled||Hangzhou|||||||
|||Ltd. liability||Nie Zhonghai|Manufacturing|360 mil|100.00%|100.00%|07934484-1|
|Co., Ltd.|subsidiaries||Zhejiang|||||||
|Xinjiang Taifeng Hangzhou Steam Turbine||||||||||
||Controlled||Wulumuqi|||||||
|Packaged Technologies Development Co.,||Ltd. liability||Yan Jianhua|Manufacturing|20 mil|51.00%|51.00%|05773639-3|
||subsidiaries||Xinjiang|||||||
|Ltd.||||||||||
|Hangzhou Pangtong Electronic Equipment|Controlled||Hangzhou|||||||
|||Ltd. liability||Xian Jinfa|Manufacturing|1 mil|70.00%|70.00%|68294625-7|
|Co., Ltd.|subsidiaries||Zhejiang|||||||
|Shijiazhuang Hangneng Steam Turbine|Controlled||Shijiazhuang||Service|||||
|||Ltd. liability||Fang Yongsong||3 mil|60.00%|60.00%|58241888-7|
|Technical Services Co., Ltd.|subsidiaries||Hebei||industry|||||
|Kunming Hangzhong Steam Turbine|Controlled||Kunming||Service|||||
|||Ltd. liability||Wanag Zhiyong||1.2 mil|60.00%|60.00%|58236606-0|
|Technical Service Co., Ltd.|subsidiaries||Yunnan||industry|||||
|Wulumuqi Hangzhongneng Steam Turbine|Controlled||Wulumuqi||Service|||||
|||Ltd. liability||Wang Bin||3 mil|60.00%|60.00%|58024078-X|
|Technical Service Co., Ltd.|subsidiaries||Xinjiang||industry|||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Tangshan Hangneng Steam Turbine Technical|Controlled||Tangshan||Service|||||
|||Ltd. liability||Sun Xiaojiang||2 mil|60.00%|60.00%|58543834-9|
|Service Co., Ltd.|subsidiaries||Hebei||industry|||||
|Jilin Hangzhongneng Steam Turbine Tech|Controlled||||Service|||||
|||Ltd. liability|Jilin|Lu Jianyi||2 mil|60.00%|60.00%|58464776-3|
|Service Co., Ltd.|subsidiaries||||industry|||||
|Guangxi Hangzhongneng Steam Turbine Tech|Controlled||Nanning||Service|||||
|||Ltd. liability||Chen Guike||2 mil|60.00%|60.00%|58981039-8|
|Service Co., Ltd.|subsidiaries||Guangxi||industry|||||
||Controlled||Chengdu||Service|||||
|Chengdu Zhongneng Tech Co., Ltd.||Ltd. liability||Yang Weidong||2 mil|60.00%|60.00%|59208630-2|
||subsidiaries||Sichuan||industry|||||
|Luoyang Hangqi Steam Turbine Tech Service|Controlled||Luoyang||Service|||||
|||Ltd. liability||Gao Jianhua||2 mil|60.00%|60.00%|05085500-7|
|Co., Ltd.|subsidiaries||Henan||industry|||||
||Controlled||Hangzhou|||||||
|Hangzhou Hangqilun Boiler Co., Ltd.||Ltd. liability||Li Ximing|Manufacturing|20 mil|50.00%|70.00%|05674402-5|
||subsidiaries||Zhejiang|||||||
|||||||24 bil||||
|Hangzhou Zhongneng Steam Power|Controlled|||||||||
|||Ltd. liability|Indonesia|Zhou Qianqian|Manufacturing|Indonesia|70.00%|70.00%|14303396-9|
|(Indonesia) Co., Ltd.|subsidiaries|||||||||
|||||||Rupiah||||
||Controlled||Hangzhou|||||||
|Hangzhou Kaineng Forge Co., Ltd.||Ltd. liability||Yang Lianrong|Manufacturing|2 mil|100.00%|100.00%|69170337-X|
||subsidiaries||Zhejiang|||||||
|Zhejiang Huayuan Steam Turbine Machinery|Controlled||Huzhou|||||||
|||Ltd. liability||Zhen Bin|Manufacturing|21 mil|75.00%|75.00%|79205170-2|
|Co., Ltd.|subsidiaries||Zhejiang|||||||
|Hangzhou Guoneng Steam Turbine|Controlled||Hangzhou|||||||
|||Ltd. liability||Yu Changquan|Manufacturing|40 mil|75.00%|75.00%|79365592-X|
|Engineering Co., Ltd.|subsidiaries||Zhejiang|||||||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 3. Other related parties
||||
|-|-|-|
|||Organization|
|Name of the related parties|Relation with the Company||
|||code|
|Hangzhou Steam Turbine Automobile Sales|||
||Affiliate of the Group|71097661-4|
|Service Co., Ltd.|||
|Hangzhou Hangfa Power Generating|||
||Affiliate of the Group|70427611-X|
|Equipment Co., Ltd.|||
|Hangzhou Nanfangtongda Gears Co., Ltd.|Affiliate of the Group|77080904-1|
|Hangzhou Nanhua Wooden Packaging Co., Ltd.|Affiliate of the Group|14332633-1|
|Hangzhou Steam Turbine Industrial Co.|Affiliate of the Group|75723721-0|
|Hangzhou Relian Group Co., Ltd.|Affiliate of the Group|71097661-4|
|Hangzhou Steam Turbine Power Technologies|||
||Affiliate of the Group|14303967-4|
|Co., Ltd.|||
|HSTG Technology Association|Affiliate of the Group|50190002-3|
|HSTG Technology Association|Affiliate of the Group||
|Hangzhou Steam Turbine Engineering Co., Ltd.|Affiliate of the Group|58320891-0|
|Greenesol Co. (India)|Shares held by the Company||
|Zhongcheng Cement Co., Ltd.|Former subsidary of Zhongneng Co.|69274068-2|
|HSTG Packaged Equipment Co., Ltd.|Affiliate of the Group|66524292-8|
|Zhejiang Hanglian Steel & Iron Co., Ltd.|Affiliate of the Group|79090691-4|
|Hangzhou Relian Group Co., Ltd.|Affiliate of the Group|72760663-6|
|Hangzhou Hengsheng Thermal Power|Enterprise under Zhijiangzhuang Service Company controlled by||
|||73527700-0|
|Equipment Co., Ltd.|minority shareholders||

4. Related Transactions
(1) Purchasing of goods and services
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Occurred current term||Occurred in previous term||
|||Pricing and|||||
||Subjects of the related|||Ratio in||Ratio in|
|Related parties||decision making|||||
||transactions||Amount|similar|Amount|similar|
|||process|||||
|||||trades||trades|
|Hangzhou Hangfa Power|||||||
|Generating Equipment Co.,|Generators|Price on agreement|79,987,800.43|5.99%|73,342,958.09|4.55%|
|Ltd.|||||||
|Hangzhou Steam Turbine|Freight, repairing,||||||
|Automobile Sales Service Co.,|rental, passenger|Price on agreement|26,300,402.48|1.97%|31,674,740.56|1.96%|
|Ltd.|vehicles||||||
|Hangzhou Nanhua Wooden|||||||
||Packaging materials|Price on agreement|5,937,357.17|0.44%|7,372,890.00|0.46%|
|Packaging Co., Ltd.|||||||
|Hangzhou Nanfangtongda|||||||
||Gear boxes|Price on agreement|8,619,991.46|0.65%|6,525,957.26|0.40%|
|Gears Co., Ltd.|||||||
|Hangzhou Steam Turbine|Materials, processing,||||||
|||Price on agreement|1,867,077.55|0.14%|1,223,373.09|0.08%|
|Industrial Co.|cleaning fees||||||
|Hangzhou Steam Turbine|||||||
||Rental and power|Price on agreement|8,259,161.07|0.62%|6,557,744.03|0.41%|
|Power Group Co., Ltd.|||||||
|Employees’ technical union,|Material and||||||
|||Price on agreement|599,145.24|0.04%|||
|HSTG|processing||||||
|Greenesol Co. (India)|Generators|Price on agreement|21,433,795.50|1.61%|||
|Hangzhou Relian International|||||||
||Purchase of steel|Price on agreement|||365,128.21|0.02%|
|Trading Co.|||||||
|Sub-total|||153,004,730.90|11.46%|127,062,791.24|7.88%|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Sales of goods and services
In RMB
||||||||
|-|-|-|-|-|-|-|
||||Occurred current term||Occurred in previous term||
||Subjects of the|Pricing and decision||Ratio in||Ratio in|
|Related parties|||||||
||related transactions|making process|Amount|similar|Amount|similar|
|||||trades||trades|
|Hangzhou Steam Turbine|||||||
||Small amount||||||
|Automobile Sales Service Co.,||Price on agreement|207.82||687.50||
||materials||||||
|Ltd.|||||||
|Hangzhou Hangfa Power|||||||
||Casting parts and||||||
|Generating Equipment Co.,||Price on agreement|5,948,399.41|0.34%|11,812,041.28|0.58%|
||outsourcing||||||
|Ltd.|||||||
|Hangzhou Steam Turbine|||||||
||Steam turbine|Price on agreement|7,963,148.72|0.46%|42,233,643.52|2.09%|
|Engineering Co., Ltd.|||||||
||Co-operated process||||||
|HSTG Technology Association||Price on agreement|206,153.84|0.01%|54,564.10||
||fee||||||
||Industrial||||||
|HSTG Technology Association||Price on agreement|||57,692.31||
||co-operation||||||
|Hangzhou Steam Turbine|steam turbine\||||||
|||Price on agreement|||962,079.24|0.05%|
|Power Group Co., Ltd.|auxiliary machines||||||
|Greenesol Co. (India)|Steam turbine, parts|Price on agreement|257,008.38|0.01%|31,935.06||
|Sub-total|||14,374,918.17|0.83%|55,152,643.01|2.72%|

 (2) Related leasing
The Company is the lender
Not applicable
The Company is the undertaker
In RMB
||||||||
|-|-|-|-|-|-|-|
||Name of the|Category of|Starting|Ending||Rental recognized|
|Name of the owner|||||Pricing basis||
||tenant|asset for rent|date|date||in the period|
|Property Management|The|Houses &|Jan 1|Dec 31|Price on||
|||||||711,175.20|
|Branch of the Group|Company|plants|2013|2017|agreement||
|Property Management|The|Land using|Jan 1|Dec 31|Price on||
|Branch of the Group|Company|right|2013|2017|agreement||
|Hangzhou Steam Turbine|||||||
||The||Dec 16|Dec 15|Price on||
|Automobile Sales Service||Warehousing||||951,102.00|
||Company||2012|2015|agreement||
|Co., Ltd.|||||||
|Hangzhou Steam Turbine|||||||
||The||May 01|May 01|Price on||
|Automobile Sales Service||Warehousing||||835,536.00|
||Company||2013|2016|agreement||
|Co., Ltd.|||||||
|Hangzhou Steam Turbine|||||||
||The|||Sept 30|Price on||
|Automobile Sales Service||Warehousing|Oct 1 2013|||1,105,954.00|
||Company|||2018|agreement||
|Co., Ltd.|||||||
|Sub-total||||||3,603,767.20|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (3) Related guarantee
In RMB
|||||||
|-|-|-|-|-|-|
||The|||||
||||||Completed or|
|The provider|beneficiar|Amount guaranteed|Start date|Due date||
||||||not|
||y|||||
|Hangzhou Steam Turbine|The|||||
|||100,000,000.00|Nov 5 2013|Nov 5 2014|No|
|Power Group Co., Ltd.|Company|||||

(4) Capital borrowed from related party: Not applicable
(5) Other related transactions: No
5. Receivable and payables due with related parties
Receivable accounts due from related parties
In RMB
|||||||
|-|-|-|-|-|-|
|||At end of term||At beginning of term||
|Projects|Related parties||Bad debt||Bad debt|
|||Book balance||Book balance||
||||provision||provision|
|Account||||||
||Greenesol Co. (India)|12,621,050.25|961,851.77|14,528,739.91|2,788,659.15|
|receivable||||||
||Hangzhou Steam Turbine Power|||||
|||3,939,071.38|1,616,932.43|9,179,071.38|1,835,814.28|
||Technologies Co., Ltd.|||||
||Hangzhou Hangfa Power|||||
|||8,611,380.69|107,400.00|9,172,143.24|458,607.16|
||Generating Equipment Co., Ltd.|||||
||Hangzhou Steam Turbine|||||
|||7,321,355.99|973,671.30|6,429,790.00|559,239.50|
||Engineering Co., Ltd.|||||
||Packaged Equipment Co. of the|||||
|||2,007,560.00|931,012.00|2,631,260.00|720,252.00|
||Group|||||
||Hangzhou Steam Turbine Group|617,500.00|315200|691,500.00|226,800.00|
||Hangzhou Nanfangtongda Gears|||||
|||4,434.00|2,660.00|4,434.00|1,773.60|
||Co., Ltd.|||||
||Hangzhou Steam Turbine|||||
||Automobile Sales Service Co.,|316.86|15.84|||
||Ltd.|||||
|Sub-total||23,128,198.76|3,911,922.60|42,636,938.53|6,591,145.69|
|Other account|Hangzhou Hengsheng Thermal|||||
|||||2,501,375.89|125,068.79|
|receivable|Power Equipment Co., Ltd.|||||
|Sub-total||||2,501,375.89|125,068.79|
||Hangzhou Hangfa Power|||||
|Prepayment||29,075,825.00||32,299,825.00||
||Generating Equipment Co., Ltd.|||||
||Hangzhou Steam Turbine|||||
||Automobile Sales Service Co.,|207,411.55||1,248,838.35||
||Ltd.|||||
||Hangzhou Nanfangtongda Gears|||||
|||||47,400.00||
||Co., Ltd.|||||
|Sub-total||29,283,236.55||33,596,063.35||

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Account payable due to related parties
In RMB
|||||
|-|-|-|-|
|Projects|Related parties|Amount at end of term|Initial ammount|
|Account|Hangzhou Hangfa Power Generating|||
|||89,064,038.95|93,056,053.50|
|payable|Equipment Co., Ltd.|||
||Hangzhou Steam Turbine Group|8,631,324.39|5,266,718.60|
||Hangzhou Steam Turbine Automobile Sales|||
|||4,611,579.13|2,446,593.87|
||Service Co., Ltd.|||
||Hangzhou Nanhua Wooden Packaging Co.,|||
|||583,211.00|247,576.00|
||Ltd.|||
||Hangzhou Steam Turbine Industrial Co.|184,951.06|114,763.46|
||Hangzhou Nanfangtongda Gears Co., Ltd.|4,815,000.00||
||Greenesol Co. (India)|0||
|Sub-total||119,726,175.63|101,131,705.43|
|Advances|Hangzhou Steam Turbine Engineering Co.,|||
|||22,834,000.00|8,188,000.00|
|received|Ltd.|||
||HSTG Packaged Equipment Co., Ltd.|20,000.00||
||Hangzhou Hangfa Power Generating|||
|||724,412.99||
||Equipment Co., Ltd.|||
||Greenesol Co. (India)|0||
|Sub-total||23,578,412.99|8,188,000.00|
|Other account||||
||Hangzhou Steam Turbine Group|1,650,985.53|18,545,102.14|
|payable||||
||Hangzhou Steam Turbine Automobile Sales|||
|||100,000.00|100,000.00|
||Service Co., Ltd.|||
|Sub-total||1,750,985.53|18,645,102.14|

 X. Share payment
XI. Contingent Events
XII. Commitment events
1. Material commitment events
(I) Capital commitment occurred due to construction of new factories or purchasing of equipment were totaled to RMB26.5616 million.
(II) The Company invested RMB10 million to be one of the partners of Hangzhou Changdi Share Investment Partnership (with limited liabilities) in 2011. This was the initial input of capital, and the Company committed to input supplementary capital when necessary according to the portion of interests, but not greater than RMB50 million accumulative in 8-11 years during the existing period of the firm. Extra RMB10.261 million was inputted in 2013, accumulated to RMB20.161 million thereof.
XIII. Post Balance Sheet Issues
XIV. Other material events
1. Leasing
2. Financial assets and liabilities in foreign currencies
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 In RMB
|||||||
|-|-|-|-|-|-|
|||Gain/loss from|Accumulative change|Impairment||
||||||Amount at end|
|Items|Initial amount|change of fair|in fair value accounted|provisions provided||
||||||of term|
|||value in the term|into equities|in the current term||
|Financial assets||||||
|3. Loans andreceivables||||||
||249,189,673.51||||217,610,187.19|
|Subtotal of||||||
|financial|249,189,673.51||||217,610,187.19|
|assets||||||
|Financialliabilities||||||
||5,257,864.04||||153,262.20|

3. Main contents of annual rewarding plan and material changes
4. Others
XV. Notes to the Financial Statements of the Parent Company
1. Account receivable
(1) Account receivable
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of term||||Beginning of term||||
|Categories|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Receivables provided bad debt provision in groups|||||||||
|Receivable|||||||||
|accounts within|||||||||
||160,781,831.10|7.26%|||173,093,826.39|7.96%|||
|the consolidation|||||||||
|range|||||||||
|Group by age|||||||||
||2,020,607,236.40|91.25%|401,023,132.11|19.85%|1,968,050,175.85|90.52%|352,283,560.30|17.90%|
|analysis|||||||||
|Sub-total of group|2,181,389,067.50|98.51%|401,023,132.11|18.38%|2,141,144,002.24|98.48%|352,283,560.30|16.45%|
|Account|||||||||
|receivable with|||||||||
|minor individual|||||||||
||33,020,480.19|1.49%|33,020,480.19|100.00%|33,020,480.19|1.52%|33,020,480.19|100.00%|
|amount but bad|||||||||
|debt provision is|||||||||
|provided|||||||||
|Total|2,214,409,547.69|--|434,043,612.30|--|2,174,164,482.43|--|385,304,040.49|--|

 Receivable accounts with large amount individually and bad debt provisions were provided
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Receivable accounts in the portfolio on which bad debt provisions were provided on age basis
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Age|Book balance||Bad debt|Book balance||Bad debt|
||Amount|Proportion|provision|Amount|Proportion|provision|
|within 1 year|||||||
|In which:|--|--|--|--|--|--|
|Subtotal of within|||||||
||1,017,135,484.05|50.34%|50,856,774.20|1,165,637,194.37|59.23%|58,281,859.72|
|1 year|||||||
|1-2 years|476,117,958.07|23.56%|95,223,591.62|368,681,471.42|18.73%|73,736,294.28|
|2-3 years|307,347,551.39|15.21%|122,939,020.56|199,867,498.67|10.16%|79,946,999.47|
|Over 3 years|220,006,242.89|10.89%|132,003,745.73|233,864,011.39|11.88%|140,318,406.83|
|3-4 years|94,266,292.45|4.67%|56,559,775.47|101,789,800.41|5.17%|61,073,880.25|
|4-5 years|49,947,470.09|2.47%|29,968,482.05|81,705,839.40|4.15%|49,023,503.64|
|over 5 yrs|75,792,480.35|3.75%|45,475,488.21|50,368,371.58|2.56%|30,221,022.95|
|Total|2,020,607,236.40|--|401,023,132.11|1,968,050,175.85|--|352,283,560.30|

 Receivable accounts in the portfolio on which bad debt provisions are provided on percentage basis Not applicable
Receivable accounts in the portfolio on which bad debt provisions are provided on other basis
Not applicable
Receivable accounts with minor amount but on which bad debt provisions are provided individually at end of period
In RMB
||||||
|-|-|-|-|-|
|Description of the receivable accounts|Book balance|Bad debt provision|Rate|Reason to provide|
|MBDL Power Plant in India, etc.|33,020,480.19|33,020,480.19|100.00%|Hard to recover|
|Total|33,020,480.19|33,020,480.19|--|--|

(2) Receivable accounts practically written off in the report period
Not applicable
(3) Receivable accounts due from shareholders with5% of shares or over
In RMB
||||||
|-|-|-|-|-|
||End of term||Beginning of term||
|||Bad debt|||
|Name of the companies||||Bad debt provision|
||Book balance|provision|Book balance||
|||||provided|
|||provided|||
|Hangzhou Steam Turbine|||||
||100,000.00|5,000.00|258,500.00|100,100.00|
|Power Group Co., Ltd.|||||
|Total|100,000.00|5,000.00|258,500.00|100,100.00|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 (4) Nature or description of other receivable accounts with larger amount
Not applicable
(5) Top 5 debtors in the receivable accounts
In RMB
||||||
|-|-|-|-|-|
|Name of the|Relation with the|||Percentage in total|
|||Amount|Ages||
|companies|Company|||receivables|
|Client I|Non-related|682,595,627.32|over 1-3 years|30.83%|
|Client II|Non-related|351,371,981.08|over 1-3 years|15.87%|
|Client III|Non-related|126,596,000.00|within 1 year|5.72%|
|Client IV|Related parties|73,143,190.42|1-3 years|3.30%|
|Client V|Related parties|62,723,288.52|over 1-3 years|2.83%|
|Total|--|1,296,430,087.34|--|58.55%|

 (6) Account due from related parties
In RMB
|||||
|-|-|-|-|
||Relation with the||Percentage in total|
|Name of the companies||Amount||
||Company||receivables|
|Zhejiang Turbine Import & Export||||
||Subsidiaries|73,143,190.42|3.30%|
|Co., Ltd.||||
|Zhejiang Steam Turbine Packaged||||
||Subsidiaries|62,723,288.52|2.83%|
|Technology Development Co., Ltd.||||
|Zhejiang Huayuan Steam Turbine||||
||Subsidiaries|16,446,968.96|0.74%|
|Machinery Co., Ltd.||||
|Hangzhou Steam Turbine Power||||
||Affiliate of the Group|3,939,071.38|0.18%|
|Technologies Co., Ltd.||||
|Hangzhou Zhongneng Steam||||
||Subsidiaries|2,902,500.00|0.13%|
|Turbine Power Co., Ltd.||||
|Hangzhou Steam Turbine||||
||Subsidiaries|2,786,894.68|0.13%|
|Machinery & Equipment Co., Ltd.||||
|Hangzhou Guoneng Steam Turbine||||
||Subsidiaries|2,574,890.01|0.12%|
|Engineering Co., Ltd.||||
|Hangzhou Steam Turbine||||
||Affiliate of the Group|929,065.99|0.04%|
|Engineering Co., Ltd.||||
|Hangzhou Steam Turbine Casting||||
||Subsidiaries|204,098.51|0.01%|
|Co., Ltd.||||
|Hangzhou Steam Turbine||||
||Affiliate of the Group|316.86|0.00%|
|Automobile Sales Service Co., Ltd.||||
|Total|--|165,650,285.33|7.48%|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 2. Other account receivable.
(1) Other receivable accounts
In RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||End of term||||Beginning of term||||
|Categories|Book balance||Bad debt provision||Book balance||Bad debt provision||
||Amount|Proportion|Amount|Proportion|Amount|Proportion|Amount|Proportion|
|Other receivables with major|||||||||
|individual amount and bad|||||||||
||3,710,320.94|9.05%|3,710,320.94|100.00%|3,710,320.94|11.95%|3,710,320.94|100.00%|
|debt provision provided|||||||||
|individually|||||||||
|Other receivables provided bad debt provision in groups|||||||||
|Other account receivable|||||||||
|within the consolidation|13,358,622.10|32.58%|||7,592,653.87|24.46%|||
|range|||||||||
|Group by age analysis|23,933,674.67|58.37%|2,680,179.90|11.20%|19,742,848.23|63.59%|2,270,192.32|11.50%|
|Sub-total of group|37,292,296.77|90.95%|2,680,179.90|7.19%|27,335,502.10|88.05%|2,270,192.32|7.31%|
|Total|41,002,617.71|--|6,390,500.84|--|31,045,823.04|--|5,980,513.26|--|

 Other receivable accounts with major single amount and bad debt provision drawn upon them
In RMB
||||||
|-|-|-|-|-|
|Description of other receivables|Book balance|Amount of bad debt|Rate|Reason|
|Customs deposit receivable|3,710,320.94|3,710,320.94|100.00%|Hard to recover|
|Total|3,710,320.94|3,710,320.94|--|--|

Other receivable accounts in the portfolio on which bad debt provisions are provided on age basis
In RMB
||||||||
|-|-|-|-|-|-|-|
||End of term|||Beginning of term|||
|Age|Book balance||Bad debt|Book balance||Bad debt|
||Amount|Proportion|provision|Amount|Proportion|provision|
|within 1 year|||||||
|In which:|--|--|--|--|--|--|
|Subtotal of|||||||
||18,897,869.27|78.96%|944,893.46|15,627,084.83|79.15%|781,354.24|
|within 1 year|||||||
|1-2 years|2,442,842.00|10.21%|488,568.40|2,172,800.00|11.01%|434,560.00|
|2-3 years|1,545,300.00|6.46%|618,120.00|557,499.80|2.82%|222,999.92|
|Over 3 years|1,047,663.40|4.38%|628,598.04|1,385,463.60|7.02%|831,278.16|
|3-4 years|191,199.80|0.80%|114,719.88|773,300.00|3.92%|463,980.00|
|4-5 years|250,300.00|1.05%|150,180.00|59,000.00|0.30%|35,400.00|
|over 5 yrs|606,163.60|2.53%|363,698.16|553,163.60|2.80%|331,898.16|
|Total|23,933,674.67|--|2,680,179.90|19,742,848.23|--|2,270,192.32|

Other receivable accounts in the portfolio on which bad debt provisions were provided on percentage basis
Not applicable
Other receivable accounts in the portfolio on which bad debt provisions were provided on other basis Not
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 applicable
Other account receivable with minor amount but bad debt provision provided individually: Not applicable (2) Other receivable accounts due from shareholders with5% of shares or over: Not applicable
(3) Nature or description of other receivable accounts with larger amount: Not applicable
(4) Top 5 debtors of other receivable accounts
In RMB
||||||
|-|-|-|-|-|
||Relation with the|||Percentage in total of other|
|Name of the companies||Amount|Ages||
||Company|||receivables|
|Hangzhou Steam Turbine Casting|||within 1||
||Related parties|10,273,686.58||25.06%|
|Co., Ltd.|||year||
||||within 1||
|Hangzhou Custom|Non-related|8,333,430.78||20.32%|
||||year||
|Customs deposit receivable|Non-related|3,710,320.94|over 5 yrs|9.05%|
|Hangzhou Steam Turbine Auxiliary|||within 1||
||Related parties|3,080,135.52||7.51%|
|Machine Co., Ltd.|||year||
|Guodian Trust Bidding Co., Ltd.|Non-related|2,966,800.00|5年以内|7.24%|
|Total|--|28,364,373.82|--|69.18%|

 (5) Other receivables due from related parties
In RMB
|||||
|-|-|-|-|
||Relation with the||Percentage in total of other|
|Name of the companies||Amount||
||Company||receivables|
|Hangzhou Steam Turbine Casting Co., Ltd.|Subsidiaries|10,273,686.58|25.06%|
|Hangzhou Steam Turbine Auxiliary Machine||||
||Subsidiaries|3,080,135.52|7.51%|
|Co., Ltd.||||
|Zhejiang Steam Turbine Packaged Technology||||
||Subsidiaries|4,800.00|0.01%|
|Development Co., Ltd.||||
|Total|--|13,358,622.10|32.58%|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 3. Long-term equity investment
In RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Statement on||Impairment||
|||||||Percentage of|Voting|||||
||Calculating|Investment|Opening|Changed|Closing|||differences between|Impairment|provision|Cash dividend of|
|Company invested in||||||share in the|power in|||||
||basis|cost|balance|by|balance|||the shareholding and|provision|provided this|the current term|
|||||||firm %|the firm %|||||
|||||||||voting rights||term||
|Zhejiang Steam Turbine||||||||||||
|Packaged Technology|Cost basis|29,800,389.56|29,800,389.56||29,800,389.56|70.86%|70.86%||||7,227,210.00|
|Development Co., Ltd.||||||||||||
|Hangzhou Zhongneng||||||||||||
|Steam Turbine Power|Cost basis|27,644,475.06|27,644,475.06||27,644,475.06|60.83%|60.83%||||70,332,375.00|
|Co., Ltd.||||||||||||
|Hangzhou Steam||||||||||||
|Turbine Casting Co.,|Cost basis|11,220,000.00|11,220,000.00||11,220,000.00|51.00%|51.00%|||||
|Ltd.||||||||||||
|Hangzhou Steam||||||||||||
|Turbine Auxiliary|Cost basis|46,286,513.41|46,286,513.41||46,286,513.41|87.53%|87.53%||||70,024,000.00|
|Machine Co., Ltd.||||||||||||
|Zhejiang Steam Turbine||||||||||||
|Machinery &|Cost basis|7,968,000.00|7,968,000.00||7,968,000.00|52.00%|52.00%||||23,400,000.00|
|Equipment Co., Ltd.||||||||||||
|Greenesol Co. (India)|Cost basis|5,534,773.22|5,534,773.22||5,534,773.22|37.00%|37.00%|||||
|Bank of Hangzhou Co.,||||||||||||
||Cost basis|390,954,040.00|390,954,040.00||390,954,040.00|6.92%|6.92%||||23,118,640.00|
|Ltd.||||||||||||
|Zhejiang Turbine||||||||||||
|Import & Export Co.,|Cost basis|20,000,000.00|20,000,000.00||20,000,000.00|100.00%|100.00%|||||
|Ltd.||||||||||||
|Hangzhou Steam||||||||||||
|Turbine Engineering|Cost basis|30,000,000.00|30,000,000.00||30,000,000.00|15.00%|15.00%|||||
|Co., Ltd.||||||||||||
|Hangzhou Changdi||||||||||||
|Investment Partnership||||||||||||
||Cost basis|20,261,013.65|20,261,013.65||20,261,013.65|2.97%|2.97%|||||
|Enterprise (with limited||||||||||||
|liabilities)||||||||||||
|Hangzhou Steam||||||||||||
|Turbine Heavy Industry|Cost basis|360,000,000.00|360,000,000.00||360,000,000.00|100.00%|100.00%|||||
|Co., Ltd.||||||||||||
|Total|--|949,669,204.90|949,669,204.90||949,669,204.90|--|--|--|||194,102,225.00|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 4. Operation income and operation cost
(1) Operation incomes
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Major business turnover|1,188,528,375.95|1,492,479,680.88|
|Other business income|12,949,928.00|14,638,809.99|
|Total|1,201,478,303.95|1,507,118,490.87|
|Operation cost|781,172,768.01|1,077,683,194.39|

 (2) Business segments (on industries)
In RMB
||||||
|-|-|-|-|-|
||Occurred current term||Occurred in previous term||
|Name of industry|||||
||Turnover|Operation cost|Turnover|Operation cost|
|Boiler and power|||||
||1,044,014,019.49|680,322,286.87|1,441,636,489.14|1,040,454,061.91|
|machine manufacture|||||
|Other special equipment|144,514,356.46|90,520,745.59|50,843,191.74|23,300,091.82|
|Total|1,188,528,375.95|770,843,032.46|1,492,479,680.88|1,063,754,153.73|

 (3) Business segments (on products)
In RMB
||||||
|-|-|-|-|-|
||Occurred current term||Occurred in previous term||
|Products or services|||||
||Turnover|Operation cost|Turnover|Operation cost|
|Industrial steam turbine|1,044,014,019.49|680,322,286.87|1,441,636,489.14|1,040,454,061.91|
|Other special equipment|144,514,356.46|90,520,745.59|50,843,191.74|23,300,091.82|
|Total|1,188,528,375.95|770,843,032.46|1,492,479,680.88|1,063,754,153.73|

 (4) Business segments (on regions)
In RMB
||||||
|-|-|-|-|-|
||Occurred current term||Occurred in previous term||
|Name of districts|||||
||Turnover|Operation cost|Turnover|Operation cost|
|Domestic|1,113,563,894.21|726,978,272.90|1,276,739,350.69|889,403,788.94|
|Overseas|74,964,481.74|43,864,759.56|215,740,330.19|174,350,364.79|
|Total|1,188,528,375.95|770,843,032.46|1,492,479,680.88|1,063,754,153.73|

 (5) Revenue from top five customers
In RMB
||||
|-|-|-|
|Name of clients|Total turnover|Portion in total turnover|
|Client I|398,111,709.39|33.14%|
|Client II|102,375,213.65|8.52%|
|Client III|70,000,000.02|5.83%|
|Client IV|41,120,754.72|3.42%|
|Client V|37,085,470.08|3.09%|
|Total|648,693,147.86|54.00%|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 5. Investment income
(1) Details of investment gains
In RMB
||||
|-|-|-|
|Items|Occurred current term|Occurred in previous term|
|Long-term equity investment gains on cost basis|194,102,225.00|170,554,688.00|
|Others|1,750,584.48|5,943,974.56|
|Total|195,852,809.48|176,498,662.56|

 (2) Long-term equity investment gains on cost basis
In RMB
|||||
|-|-|-|-|
||Occurred current|Occurred in previous|Causation of|
|Company invested in||||
||term|term|change|
|Hangzhou Zhongneng Steam Turbine Power Co.,||||
||70,332,375.00|64,503,750.00||
|Ltd.||||
|Hangzhou Steam Turbine Auxiliary Machine Co.,||||
||70,024,000.00|48,957,040.00||
|Ltd.||||
|Zhejiang Steam Turbine Packaged Technology||||
||7,227,210.00|10,575,258.00||
|Development Co., Ltd.||||
|Hangzhou Steam Turbine Machinery & Equipment||||
||23,400,000.00|23,400,000.00||
|Co., Ltd.||||
|Bank of Hangzhou Co., Ltd.|23,118,640.00|23,118,640.00||
|Total|194,102,225.00|170,554,688.00|--|

 6. Supplementary data of cash flow statement
In RMB
||||
|-|-|-|
||Amount of the Current|Amount of the Previous|
|Supplementary Info.|||
||Term|Term|
|1. Net profit adjusted to cash flow of business operation|--|--|
|Net profit|301,301,877.28|317,806,345.17|
|Plus: Asset impairment provision|49,149,559.39|16,913,497.95|
|Fixed asset depreciation, gas and petrol depreciation,|||
||28,282,239.82|31,345,840.90|
|production goods depreciation|||
|Amortizing of intangible assets|1,348,657.64|1,178,647.72|
|Loss from disposal of fixed assets, intangible assets, and other|||
|||-23,194.80|
|long-term assets (“-“ for gains)|||
|Financial expenses (“-“ for gains)|8,893,880.04|-871,655.94|
|Investment loss (“-“ for gains)|-195,852,809.48|-176,498,662.56|
|Decrease of inventory (“-“ for increase)|-234,588,906.52|-344,454,821.63|
|Decrease of operational receivable items (“-“ for increase)|107,551,549.30|-461,124,334.99|
|Increase of operational payable items (“-“ for decrease)|42,518,032.93|586,073,824.58|
|Cash flow generated by business operation, net|108,604,080.40|-29,654,513.60|
|2. Major investment and financing operation not involving with|||
||--|--|
|cash|||
|3. Net change of cash and cash equivalents|--|--|
|Balance of cash at period end|423,425,045.57|378,882,861.62|
|Less: Initial balance of cash|295,292,983.14|654,577,030.60|
|Net increasing of cash and cash equivalents|128,132,062.43|-275,694,168.98|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 XVI. Supplementary Information
1. Details of non-recurring gain/loss of the term
In RMB
||||
|-|-|-|
|||Rema|
|Items|Amount||
|||rks|
|Gain/loss from disposal of non-current assets (includes the recovered part of asset|||
||226,573.76||
|impairment provision already provided)|||
|Gains and losses included in the current period of government subsidies, excluding those|||
|government grants which are closely related to normal business and in line with national|4,002,971.00||
|policy , or in accordance with fixed standards or quantities|||
|Gain/loss from change of fair value of transactional asset and liabilities, and investment|||
|gains from disposal of transactional financial assets and liabilities and sellable financial|||
||9,549,596.76||
|assets, other than valid period value instruments related to the Company’s common|||
|businesses|||
|Other non-business income and expenditures other than the above|4,595,187.79||
|Less: Influenced amount of income tax|1,996,268.62||
|Influence on minority shareholders’ equity (after tax)|1,617,302.04||
|Total|14,760,758.65|--|

 2. Differences of financial data under domestic and international accounting standards
(1) Differences in net profit and net assets under international and domestic standards
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net asset attributable to the shareholders||
||of the listed company||of the listed company||
||Current term|Amount of last term|End of term|Beginning of term|
|On Chinese Accounting|196,174,851.01|232,926,224.38|4,276,885,828.98|4,230,942,110.74|
|Standard|||||
|Items and amounts adjusted on IAS|||||

(2) Differences in net profit and net assets under overseas and domestic standards
In RMB
||||||
|-|-|-|-|-|
||Net profit attributable to the shareholders||Net asset attributable to the shareholders||
||of the listed company||of the listed company||
||Current term|Amount of last term|End of term|Beginning of term|
|On Chinese Accounting|196,174,851.01|232,926,224.38|4,276,885,828.98|4,230,942,110.74|
|Standard|||||
|Accounts and amounts adjusted according to overseas accounting standard|||||

(3) Remarks on the differences of financial data under overseas and domestic accounting standards
Not applicable
Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 3. Net income on asset ratio and earning per share
In RMB Yuan
|||||
|-|-|-|-|
|||Earnings per share||
||Net income on|||
|Profit of the report period||Basic earnings|Diluted earnings|
||asset, weighted|||
|||per share|per share|
|Net profit attributable to common shareholders of the||||
||4.53%|0.26|0.26|
|Company||||
|Net profit attributable to the common owners of the PLC||||
||4.19%|0.24|0.24|
|after deducting of non-recurring gains/losses||||

4. Irregular situation and causes of items in the financial statements
||||||
|-|-|-|-|-|
|Balance SheetItems|End of term|Beginning ofterm|Scale ofchange|Remarks on the change|
|Intangible assets|308,217,878.79|225,562,108.26|36.64%|Mainly recording of land using rights payment underHeavy Industry Co. – subsidiary of the Company, inthe period|
|Other non-currentasset||66,500,000.00|-100.00%|Mainly recording of land using rights payment underHeavy Industry Co. – subsidiary of the Company, inthe period|
|Notes payable|72,182,776.00|168,751,198.95|-57.23%|Mainly decrease of bank accepted notes issued bysubsidiaries in the period|
|Tax payable|79,556,783.49|107,956,056.99|-26.31%|Mainly payment of VAT and income tax payable forthe 4th quarter of previous year and paid in the reportperiod|
|Income StatementItems|Current term|Same period oflast term|Scale ofchange|Remarks on the change|
|Business tax andsurcharge|11,426,673.94|17,369,338.95|-34.21%|Mainly decrease of operational tax due to decrease ofturnover|
|Financial expenses|9,202,486.72|1,542,054.93|496.77%|Mainly increase of interest on loans in the period|
|Asset impairmentloss|55,223,094.46|23,595,101.44|134.04%|Mainly change of receivable account age structure:decrease of short accounts and increase of longeraccounts|
|Investment income|33,668,236.76|64,696,068.76|-47.96%|Mainly there was an investment gain from disposal ofshare equity of the Packaged Equipment Co. of theGroup in the 1st half of last year.|
|Non-operationalincome|12,194,329.71|4,202,690.63|190.16%|Mainly influenced by termination of contract andpenalties in the report period|
|Minor shareholders’equity|31,527,233.63|55,854,396.54|-43.55%|Mainly decrease of profit contributed by subsidiariesand decrease of shareholding by minorityshareholders|
|Cash FlowStatement Items|Current term|Same period oflast term|Scale ofchange|Remarks on the change|
|Net cash flowgenerated byinvestment|-58,390,584.46|-274,500,144.16|78.73%|Mainly decrease of cash received from financialproducts and investment in the report period|
|Net increasing ofcash and cashequivalents|-111,810,766.61|-369,600,123.01|69.75%|Mainly significant increase in net cash flow frominvestment operations|

Hangzhou Steam Turbine Co., Ltd. Semiannual Report 2014 Chapter X. Documents for Reference
(I) Financial Statements signed and sealed by the Chairman of the Board , chief accountant and director of the financial division;
(II) All the originals of theCompany’s documents and public notices disclosed in the newspapers designated by China Securities Regulatory Commission in the report period;
(III) Original copy of Resolutions of the
13th
Meeting of the
6th
Term of Board.
Hangzhou Steam Turbine Co., Ltd.
Chairman of the Board: Nie Zhonghai
August 18, 2014