Stock Code: 200771 Stock ID: Hangqilun B Announcement No. 2015-23
Hangzhou Steam Turbine Co., Ltd.
Report of the Supervisory Committee 2014
The members of the Supervisory Committee acknowledge being responsible for the truthfulness, accuracy, and completeness of the announcement. Not any false record, misleading statement
or significant omission carried in this announcement.
To theShareholders’ of the Company:
In year 2014, the Supervisory Committee had been performing its duties according to the
Company Law, Securities Law, the Articles of Association, and Meeting Criteria of Supervisory
Committee. Inspections were conducted regularly on theCompany’s business operation, financial position, and operation of the Board and executives, aimed at guarding the legal benefits of the
shareholders, the Company, and employees, and promote healthy development of the Company.
I. Meeting and examinations in the report period
In the report period, the Committee had held 5 regular or provisional meetings. A number of
issues were inspected and examined, including the periodic reports, financial reports, dividend
plans, introspection reports, routine related transactions, change of accounting policies, adding of
new related transactions.
For the details of theCommittee’s work please find V. Fulfilling of duties of the Supervisory
Committee in the Annual Report 2014 (Announcement No. 2015-08) released by
www.cninfo.com.cn dated March 28, 2015.
II. Presenting of board meetings andshareholders’ meetings
The Committee presented 9 board meetings and 1shareholders’ meeting during the report period.
Through participating of these meetings, the Committee acquired information about the
Company’s decision-making process and business management. Communications were made
effectively with the shareholders, directors, and executives. Flaws in operation were discovered on time. The supervisors were exercising their duties at the meetings and performed inspection on
decision-making processes and risk-control approaches.
III. Fulfilling of duties in the report period
In year 2014, the Committee performed inspections on the following aspects in viewing of legal
operation and good economic efficiency.
1. Supervising on the business operation: The Supervisors participated in the meetings of the
Board and supervised the main decision-making procedures; verified the execution of resolutions
of theshareholders’ meeting and board meetings, as well as the major investment plans and
related transactions. The Committee also provided corresponding opinions and suggestions on the business operation of the Company.
2. Inspection on financial activities: Inspection on business operation and financial position is
the key work of the Committee. The Committee urged the Company to improve its accounting
system and internal control system according to the Accounting Law and new accounting standard,
and thereafter supervised the change of accounting policies; supervised the processes of
accounting works; improvement opinions were provided according to the laws and regulations.
3. Supervising the executives: to perform effective supervising over the performances of the
directors and executives of the Company, the Supervisory Committee urged them to study the
laws and regulations to upgrade their sense of legal operation, therefore ensure legal operation of
the Company. All of the directors, supervisors, and executives were acting according to the law
without being punished by any department.
4. Supervising on inside information management The Company revised the Information Insider
Registration and Administration Rules according to the regulations of CSRC and SSE.
Information Insider Files were established covering all of the directors, supervisors, executives
and other insiders, and filed to SSE. This was for the effectiveness of confidential works and
information disclosure. No illegal trade was found with the aforesaid personnel in the report
period.
5. Improvement of the Committee itself For the purpose of better performing its duties, the
Committee constantly studied the laws, regulations, and documents of CSRC and SSE.
Supervisors were arranged to take part in the educational events organized by Zhejiang Securities
Regulatory Commission and learnt about warning cases of restricted illegal actions.
IV. Summary of theCommittee’s opinion on particular issues
In the report period, the Committee had issued opinions on the periodic reports, introspective
report on internal control, related transactions, and change of accounting policies with regard to
the regulations and duties of the Committee.
For the details of theCommittee’s work please find IX. Fulfilling of duties of the Supervisory
Committee in the Annual Report 2014 (Announcement No. 2015-08) released by
www.cninfo.com.cn dated March 28, 2015.
The Supervisory Committee of
Hangzhou Steam Turbine Co., Ltd.
March 26, 2015