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杭汽轮B:2013年年度审计报告(英文版)
公告日期：
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
StockCode:200771
StockID:HangqilunB
AnnouncementNo.2014-09
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
ChapterX.FinancialReport
I.Auditors’Report
Typeofauditingopinion
Standardreportwithoutqualifiedopinion
DateofissueoftheAuditors’Report
Pan-ChinaCertifiedPublicAccountants(Specialcommon
NameoftheCPA
partnership)
Nameofthecertifiedaccountants
LvLihua,ZhangQizhi
Auditors’Report
TotheentireshareholdersofHangzhouSteamTurbineCo.,Ltd.
WehaveauditedtheFinancialStatementsofHangzhouSteamTurbineCo.,Ltd.(theCompany)attachedhereafter,
includingtheBalanceSheetandConsolidatedBalanceSheetendedDecember31,2013,IncomeStatementand
ConsolidatedIncomeStatement,CashFlowStatementandConsolidatedCashFlowStatement,Statementof
ChangeinShareEquitiesandConsolidatedStatementofChangeinShareEquitiesofyear2013,aswellasthe
notestotheFinancialStatements.
I.Executives’responsibilitiesontheFinancialStatements
PreparingandappropriatelypresentingoftheFinancialStatementsaretheresponsibilitiesofthemanagementof
TheCompany.Thisresponsibilitiesareincluding:(1)PreparingthefinancialstatementsaccordingtoEnterprise
AccountingStandardsandmakethemreflectingafairbasis.(2)Design,implementandmaintaintheinternal
controlsystemrelatedtoproducingoftheFinancialStatements,topreventtheFinancialStatementsfrommajor
falsepresentationduetocheatingorerror.
II.ResponsibilitiesoftheCPA
OurresponsibilitiesaretoissueauditingopinionsontheFinancialStatementsbasingontheauditingworkswe’ve
doneonthem.WecarriedouttheauditingworkswithcompliancetoChineseCPAAuditingStandard,which
requiresustoplanandimplementourworksonthebasisofprofessionalethicstandards,andobtainreasonable
guaranteethattheFinancialStatementsarefreeofmajorfalsestatements.
Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthe
financialstatements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentofthe
risksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoserisk
assessments,weconsidertheinternalcontrolrelevanttotheentity’spreparationoffinancialstatementsinorderto
designauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinion
ontheeffectivenessofthecompany’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofthe
accountingpolicesusedandthereasonablenessoftheaccountingestimatesmadebymanagement,aswellas
evaluatingtheoverallpresentationofthefinancialstatements.
Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouraudit
III.Auditors’Opinions
WebelievethattheCompanyhasbeenfollowingwiththeEnterpriseAccountingStandardinpreparingofthe
FinancialStatements.TheFinancialStatementsisreflecting,bothoftheCompanyandtheconsolidated,inall
importantaspects,thefinancialsituationofHangzhouSteamTurbineCo.,Ltd.asofDecember31,2013andthe
businessperformanceandcashflowofyear2013bothoftheCompanyandtheconsolidated.
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
Pan-ChinaCertifiedPublicAccountants
(Specialgeneralpartnership)
HangzhouChina
March27,2014
II.TheFinancialStatements
AllfiguresintheNotestotheFinancialStatementsareinRMBYuan
1.ConsolidatedBalanceSheet
Preparedby:HangzhouSteamTurbineCo.,Ltd
Closingbalance
Openingbalance
Currentasset:
Monetarycapital
883,141,568.17
1,100,640,580.62
Settlementprovision
Outgoingcallloan
Transactionalfinancialassets
Notesreceivable
921,474,660.68
803,384,920.81
Accountreceivable
2,116,165,121.01
1,946,840,383.15
Prepayment
221,002,418.39
275,397,188.58
Insurancereceivable
Reinsurancereceivable
ProvisionsofReinsurancecontractsreceivable
Interestreceivable
Dividendreceivable
435,586.13
Otheraccountreceivable
31,299,637.50
179,863,895.91
Repurchasingoffinancialassets
Inventories
1,522,662,268.44
1,451,289,045.64
Non-currentassetduein1year
Othercurrentasset
318,647,045.27
150,724,250.00
Totalofcurrentasset
6,014,392,719.46
5,908,575,850.84
Non-currentassets
Disburseofconsignedloans
Sellablefinancialasset
Expiredinvestmentinpossess
Long-termreceivable
Long-termshareequityinvestment
472,349,826.87
462,088,813.22
Investmentrealestates
Fixedassets
609,425,345.52
652,753,812.70
Constructioninprocess
166,904,606.60
108,252,291.56
Engineeringgoods
Fixedassetdisposal
Productionphysicalassets
Gas&petrol
Intangibleassets
225,562,108.26
210,185,683.85
R&Dexpense
Long-termamortizableexpenses
2,618,841.58
Deferredincometaxasset
90,477,451.14
93,040,744.20
Othernon-currentasset
66,500,000.00
10,200,000.00
Totalofnon-currentassets
1,631,256,086.97
1,539,140,187.11
Totalofassets
7,645,648,806.43
7,447,716,037.95
Currentliabilities
Short-termloans
376,900,000.00
250,400,000.00
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
LoanfromCentralBank
Depositreceivedandholdforothers
Callloanreceived
Transactionalfinancialliabilities
Notespayable
168,751,198.95
133,505,278.70
Accountpayable
778,441,385.31
608,127,982.09
Advancesreceived
1,480,588,499.90
1,632,856,815.04
Sellingofrepurchasedfinancialassets
Feesandcommissionsreceivable
Employees’wagepayable
63,401,599.09
27,384,846.15
Taxpayable
107,956,056.99
85,182,827.55
Interestpayable
228,197.26
Dividendpayable
9,800,000.00
Otheraccountpayable
46,941,539.40
259,432,035.81
Reinsurancefeepayable
Insurancecontractprovision
Entrustedtradingofsecurities
Entrustedsellingofsecurities
Non-currentliabilityduein1year
100,000,000.00
Othercurrentliability
Totalofcurrentliability
3,022,980,279.64
3,106,917,982.60
Non-currentliabilities
Long-termborrowings
Bondpayable
Long-termpayable
330,000.00
330,000.00
Specialpayable
Expectedliabilities
Deferredincometaxliability
1,017,473.05
1,037,517.08
Othernon-recurringliabilities
9,700,985.00
11,149,265.00
Totalofnon-currentliabilities
11,048,458.05
12,516,782.08
Totalofliability
3,034,028,737.69
3,119,434,764.68
Owners’equity(orshareholders’equity)
Capitalpaidin(orsharecapital)
754,010,400.00
754,010,400.00
Capitalreserves
139,590,345.09
139,590,345.09
Less:Sharesinstock
Specialreserves
17,276,201.15
10,294,548.34
Surplusreserves
583,824,678.05
518,540,739.23
Commonriskprovision
Retainedprofit
2,736,802,630.30
2,449,720,889.86
Differentofforeigncurrencytranslation
-562,143.85
Totalofowner’sequitybelongtotheparentcompany
4,230,942,110.74
3,872,156,922.52
Minorshareholders’equity
380,677,958.00
456,124,350.75
Totalofowners’equity(orshareholders’equity)
4,611,620,068.74
4,328,281,273.27
Totalofliabilityandshareholders’equity(orowners’equity)
7,645,648,806.43
7,447,716,037.95
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
2.BalanceSheetoftheParentCompany
Preparedby:HangzhouSteamTurbineCo.,Ltd
Closingbalance
Openingbalance
Currentasset:
Monetarycapital
295,292,983.14
654,577,030.60
Transactionalfinancialassets
Notesreceivable
601,340,832.00
555,963,481.26
Accountreceivable
1,788,860,441.94
1,447,088,649.71
Prepayment
142,783,696.27
148,589,241.50
Interestreceivable
Dividendreceivable
10,635,586.13
Otheraccountreceivable
25,065,309.78
22,772,249.70
Inventories
1,119,933,842.22
1,025,077,300.24
Non-currentassetduein1year
Othercurrentasset
100,000,000.00
Totalofcurrentasset
3,973,277,105.35
3,964,703,539.14
Non-currentassets
Sellablefinancialasset
Expiredinvestmentinpossess
Long-termreceivable
Long-termshareequityinvestment
949,669,204.90
516,782,461.07
Investmentrealestates
Fixedassets
316,182,652.53
331,961,743.27
Constructioninprocess
124,088,852.72
78,827,759.37
Engineeringgoods
Fixedassetdisposal
Productionphysicalassets
Gas&petrol
Intangibleassets
181,668,119.33
44,366,863.73
R&Dexpense
Long-termamortizableexpenses
1,352,509.28
Deferredincometaxasset
61,066,646.31
55,106,028.33
Othernon-currentasset
Totalofnon-currentassets
1,632,675,475.79
1,028,397,365.05
Totalofassets
5,605,952,581.14
4,993,100,904.19
Currentliabilities
Short-termloans
260,000,000.00
Transactionalfinancialliabilities
Notespayable
Accountpayable
469,018,283.68
286,310,510.70
Advancesreceived
1,060,240,346.99
1,219,358,402.37
Employees’wagepayable
49,561,769.28
15,910,246.38
Taxpayable
63,656,915.72
36,696,777.46
Interestpayable
Dividendpayable
Otheraccountpayable
31,407,616.90
16,507,901.29
Non-currentliabilityduein1year
100,000,000.00
Othercurrentliability
Totalofcurrentliability
1,933,884,932.57
1,674,783,838.20
Non-currentliabilities
Long-termborrowings
Bondpayable
Long-termpayable
Specialpayable
Expectedliabilities
Deferredincometaxliability
1,017,473.05
1,037,517.08
Othernon-recurringliabilities
200,250.00
289,250.00
Totalofnon-currentliabilities
1,217,723.05
1,326,767.08
Totalofliability
1,935,102,655.62
1,676,110,605.28
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
Owners’equity(orshareholders’equity)
Capitalpaidin(orsharecapital)
754,010,400.00
754,010,400.00
Capitalreserves
138,953,250.09
138,953,250.09
Less:Sharesinstock
Specialreserves
7,295,765.20
4,671,366.80
Surplusreserves
565,068,272.92
499,784,334.10
Commonriskprovision
Retainedprofit
2,205,522,237.31
1,919,570,947.92
Differentofforeigncurrencytranslation
Totalofowners’equity(orshareholders’equity)
3,670,849,925.52
3,316,990,298.91
Totalofliabilityandshareholders’equity(orowners’equity)
5,605,952,581.14
4,993,100,904.19
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
3.ConsolidatedIncomeStatement
Preparedby:HangzhouSteamTurbineCo.,Ltd
AmountoftheCurrent
AmountofthePrevious
I.Totalrevenue
5,064,643,686.67
4,575,383,435.46
Incl.Businessincome
5,064,643,686.67
4,575,383,435.46
Interestincome
Insurancefeeearned
Feeandcommissionreceived
II.Totalbusinesscost
4,279,668,780.40
3,734,815,099.32
Incl.Businesscost
3,411,549,649.25
2,909,231,231.97
Interestexpense
Feeandcommissionpaid
Insurancedischargepayment
Netclaimamountpaid
Netinsurancepolicyreservesprovided
Insurancepolicydividendpaid
Reinsuranceexpenses
Businesstaxandsurcharge
39,489,864.78
43,267,781.08
Salesexpense
189,379,007.03
176,392,823.30
Administrativeexpense
562,638,390.77
512,196,553.19
Financialexpenses
9,713,220.64
43,779,974.72
Assetimpairmentloss
66,898,647.93
49,946,735.06
Plus:gainsfromchangeoffairvalue(“-“forloss)
Investmentgains(“-“forloss)
69,771,886.60
163,618,696.35
Incl.Investmentgainsfromaffiliates
Exchangegains(“-“forloss)
III.Operationalprofit(“-“forloss)
854,746,792.87
1,004,187,032.49
Plus:Nonbusinessincome
21,848,937.68
19,140,525.57
Less:Non-businessexpenses
10,625,481.54
10,510,805.52
Incl.Lossfromdisposalofnon-currentassets
3,047,116.27
IV.Grossprofit(“-“forloss)
865,970,249.01
1,012,816,752.54
Less:Incometaxexpenses
131,146,615.15
151,456,577.99
V.Netprofit(“-“fornetloss)
734,823,633.86
861,360,174.55
Including:Netprofitrealizedbytheentitytakenoverbeforethe
Netprofitattributabletotheownersofparentcompany
653,356,182.05
735,102,032.17
Minorshareholders’equity
81,467,451.81
126,258,142.38
VI.Earningspershare:
(I)Basicearningspershare
(II)Dilutedearningspershare
VII.Othermisc.incomes
-1,320,218.73
VIII.Totalofmisc.incomes
733,503,415.13
861,360,174.55
Totalofmisc.incomesattributabletotheownersoftheparent
652,794,038.20
735,102,032.17
Totalmiscgainsattributabletotheminorshareholders
80,709,376.93
126,258,142.38
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
4.IncomeStatementoftheParentCo.
Preparedby:HangzhouSteamTurbineCo.,Ltd
AmountoftheCurrentTerm
AmountofthePreviousTerm
I.Turnover
3,430,910,953.10
2,932,002,887.95
Less:Operationcost
2,335,815,522.20
1,904,307,455.95
Businesstaxandsurcharge
28,588,902.84
27,264,471.92
Salesexpense
130,140,081.01
121,462,744.22
Administrativeexpense
335,282,543.42
308,075,528.40
Financialexpenses
4,611,152.12
9,028,157.63
Assetimpairmentloss
38,718,126.58
2,087,879.33
Plus:gainsfromchangeoffairvalue(“-“forloss)
Investmentgains(“-“forloss)
179,738,358.40
172,601,916.72
Incl.Investmentgainsfromaffiliates
II.Operationalprofit(“-“forloss)
737,492,983.33
732,378,567.22
Plus:Nonbusinessincome
7,909,281.22
11,412,428.99
Less:Non-businessexpenses
6,516,458.28
4,375,325.12
Incl.Lossfromdisposalofnon-currentassets
2,316,043.83
III.Totalprofit(“-“forloss)
738,885,806.27
739,415,671.09
Less:Incometaxexpenses
86,046,418.07
85,841,980.76
IV.Netprofit(“-“fornetloss)
652,839,388.20
653,573,690.33
V.Earningspershare
(I)Basicearningspershare
(II)Dilutedearningspershare
VI.Othermiscgains
VII.Totalofintegratedincome
652,839,388.20
653,573,690.33
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
5.ConsolidatedCashFlowStatement
Preparedby:HangzhouSteamTurbineCo.,Ltd
AmountoftheCurrent
AmountofthePrevious
I.Netcashflowfrombusinessoperation
Cashreceivedfromsalesofproductsandprovidingofservices
4,354,432,396.28
4,114,411,605.32
Netincreaseofcustomerdepositsandcapitalkeptforbrothercompany
Netincreaseofloansfromcentralbank
Netincreaseofinter-bankloansfromotherfinancialbodies
Cashreceivedagainstoriginalinsurancecontract
Netcashreceivedfromreinsurancebusiness
Netincreaseofclientdepositandinvestment
Netincreaseoftradefinancialassetdisposal
Cashreceivedasinterest,processingfee,andcommission
Netincreaseofinter-bankfundreceived
Netincreaseofrepurchasingbusiness
Taxreturned
11,819,714.06
43,298,472.14
Othercashreceivedfrombusinessoperation
29,450,077.87
27,113,577.82
Sub-totalofcashinflowfrombusinessactivities
4,395,702,188.21
4,184,823,655.28
Cashpaidforpurchasingofmerchandiseandservices
2,724,149,674.24
2,015,637,313.48
Netincreaseofclienttradeandadvance
Netincreaseofsavingsincentralbankandbrothercompany
Cashpaidfororiginalcontractclaim
Cashpaidforinterest,processingfeeandcommission
Cashpaidforpolicydividend
Cashpaidtostaffsorpaidforstaffs
642,971,428.46
662,847,540.67
455,142,683.16
529,307,094.45
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
Othercashpaidforbusinessactivities
203,773,870.42
199,342,074.43
Sub-totalofcashoutflowfrombusinessactivities
4,026,037,656.28
3,407,134,023.03
Cashflowgeneratedbybusinessoperation,net
369,664,531.93
777,689,632.25
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving
Cashreceivedasinvestmentprofit
41,579,116.39
42,088,536.14
Netcashretrievedfromdisposaloffixedassets,intangibleassets,and
1,126,727.68
4,839,279.57
otherlong-termassets
Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits
78,569,542.05
95,653,463.95
Otherinvestment-relatedcashreceived
2,500,701,303.45
1,700,000,000.00
Sub-totalofcashinflowduetoinvestmentactivities
2,621,976,689.57
1,842,581,279.66
Cashpaidforconstructionoffixedassets,intangibleassetsandother
320,307,042.75
103,739,255.20
long-termassets
Cashpaidasinvestment
13,332,463.65
10,200,000.00
Netincreaseofloanagainstpledge
Netcashreceivedfromsubsidiariesandotheroperationalunits
Othercashpaidforinvestmentactivities
2,666,000,000.00
1,800,610,000.00
Sub-totalofcashoutflowduetoinvestmentactivities
2,999,639,506.40
1,914,549,255.20
Netcashflowgeneratedbyinvestment
-377,662,816.83
-71,967,975.54
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment
24,607,175.00
16,400,000.00
Incl.Cashreceivedasinvestmentfromminorshareholders
14,407,175.00
15,200,000.00
Cashreceivedasloans
487,300,000.00
280,400,000.00
Cashreceivedfrombondplacing
Otherfinancing-relatedcashreceived
123,517,707.64
325,397,021.00
Subtotalofcashinflowfromfinancingactivities
635,424,882.64
622,197,021.00
Cashtorepaydebts
340,800,000.00
344,317,423.50
Cashpaidasdividend,profit,orinterests
429,478,521.63
324,872,064.04
Incl.Dividendandprofitpaidbysubsidiariestominorshareholders
116,763,952.00
127,434,902.42
Othercashpaidforfinancingactivities
98,655,730.18
193,085,577.41
Subtotalofcashoutflowduetofinancingactivities
868,934,251.81
862,275,064.95
Netcashflowgeneratedbyfinancing
-233,509,369.17
-240,078,043.95
IV.Influenceofexchangeratealternationoncashandcashequivalents
-2,693,759.81
-1,302,075.16
V.Netincreaseofcashandcashequivalents
-244,201,413.88
464,341,537.60
Plus:Balanceofcashandcashequivalentsatthebeginningofterm
1,055,130,058.35
590,788,520.75
VI.Balanceofcashandcashequivalentsattheendofterm
810,928,644.47
1,055,130,058.35
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
6.CashFlowStatementoftheParentCo.
Preparedby:HangzhouSteamTurbineCo.,Ltd
AmountoftheCurrent
AmountofthePrevious
I.Netcashflowfrombusinessoperation
Cashreceivedfromsalesofproductsandprovidingofservices
2,531,933,737.51
2,687,458,009.55
Taxreturned
2,846,579.73
1,267,849.50
Othercashreceivedfrombusinessoperation
9,108,036.72
11,497,724.19
Sub-totalofcashinflowfrombusinessactivities
2,543,888,353.96
2,700,223,583.24
Cashpaidforpurchasingofmerchandiseandservices
1,496,021,531.29
1,251,453,663.59
Cashpaidtostaffsorpaidforstaffs
459,983,481.24
471,116,600.76
290,759,748.18
331,590,577.98
Othercashpaidforbusinessactivities
98,212,968.87
107,730,182.69
Sub-totalofcashoutflowfrombusinessactivities
2,344,977,729.58
2,161,891,025.02
Cashflowgeneratedbybusinessoperation,net
198,910,624.38
538,332,558.22
II.Cashflowgeneratedbyinvesting
Cashreceivedfrominvestmentretrieving
Cashreceivedasinvestmentprofit
190,373,944.53
161,966,330.59
Netcashretrievedfromdisposaloffixedassets,intangibleassets,and
1,123,953.55
3,887,603.42
otherlong-termassets
Netcashreceivedfromdisposalofsubsidiariesorotheroperationalunits
Otherinvestment-relatedcashreceived
2,120,000,000.00
1,080,656,000.00
Sub-totalofcashinflowduetoinvestmentactivities
2,311,497,898.08
1,246,509,934.01
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
Cashpaidforconstructionoffixedassets,intangibleassetsandother
230,385,502.50
57,700,205.78
long-termassets
Cashpaidasinvestment
432,886,743.83
Netcashreceivedfromsubsidiariesandotheroperationalunits
Othercashpaidforinvestmentactivities
2,060,000,000.00
1,180,000,000.00
Sub-totalofcashoutflowduetoinvestmentactivities
2,723,272,246.33
1,237,700,205.78
Netcashflowgeneratedbyinvestment
-411,774,348.25
8,809,728.23
III.Cashflowgeneratedbyfinancing
Cashreceivedasinvestment
Cashreceivedasloans
260,000,000.00
Cashreceivedfrombondplacing
Otherfinancing-relatedcashreceived
Subtotalofcashinflowfromfinancingactivities
260,000,000.00
Cashtorepaydebts
100,000,000.00
16,317,423.50
Cashpaidasdividend,profit,orinterests
304,172,493.33
193,676,742.13
Othercashpaidforfinancingactivities
Subtotalofcashoutflowduetofinancingactivities
404,172,493.33
209,994,165.63
Netcashflowgeneratedbyfinancing
-144,172,493.33
-209,994,165.63
IV.Influenceofexchangeratealternationoncashandcashequivalents
-2,247,830.26
-1,502,015.98
V.Netincreaseofcashandcashequivalents
-359,284,047.46
335,646,104.84
Plus:Balanceofcashandcashequivalentsatthebeginningofterm
654,577,030.60
318,930,925.76
VI.Balanceofcashandcashequivalentsattheendofterm
295,292,983.14
654,577,030.60
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
7.StatementofChangeinOwners’Equity(Consolidated)
Preparedby:HangzhouSteamTurbineCo.,Ltd
AmountoftheCurrentTerm
AmountoftheCurrentTerm
Owners’EquityAttributabletotheParentCompany
Minorshareholders’
Capitalpaidin(orshare
Less:Sharesin
Commonrisk
Totalofowners’equity
Retainedprofit
I.Balanceattheendoflastyear
754,010,400.5.09
10,294,548.9.23
2,449,720,889.86
456,124,350.75
4,328,281,273.27
Plus:Changeofaccountingpolicy
Correctingofpreviouserrors
II.Balanceatthebeginningofcurrentyear
754,010,400.5.09
10,294,548.9.23
2,449,720,889.86
456,124,350.75
4,328,281,273.27
III.Amountofchangeincurrentterm(“-“for
6,981,652.81 65,283,938.82
287,081,740.44-562,143.85
-75,446,392.75
283,338,795.47
(I)Netprofit
653,356,182.05
81,467,451.81
734,823,633.86
(II)Othermisc.income
-562,143.85
-758,074.88
-1,320,218.73
Totalof(I)and(II)
653,356,182.05-562,143.85
80,709,376.93
733,503,415.13
(III)Investmentordecreasingofcapitalbyowners
-50,207,922.63
-50,207,922.63
1.Capitalinputtedbyowners
-50,207,922.63
-50,207,922.63
2.Amountofsharespaidandaccountedasowners’
(IV)Profitallotment
65,283,938.82
-366,888,098.81
-106,963,952.00
-408,568,111.99
1.Providingofsurplusreserves
65,283,938.82
-65,283,938.82
2.Commonriskprovision
3.Allotmenttotheowners(orshareholders)
-301,604,159.99
-106,963,952.00
-408,568,111.99
(V)Internaltransferringofowners’equity
-1,886,977.19
-1,886,977.19
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapital
3.Makinguplossesbysurplusreserves
-1,886,977.19
-1,886,977.19
(VI)Specialreserves
7,595,310.01
2,507,899.34
10,103,209.35
1.Providedthisyear
10,042,022.97
3,231,339.45
13,273,362.42
2.Usedthisterm
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.Balanceattheendofthisterm
754,010,400.5.09
17,276,201.8.05
2,736,802,630.30-562,143.85
380,677,958.00
4,611,620,068.74
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
AmountofLastYear
AmountofLastYear
Owners’EquityAttributabletotheParentCompany
Minorshareholders’
Totalofowners’
Capitalpaidin(orshare
Less:Sharesin
Commonrisk
Retainedprofit Others
I.Balanceattheendoflastyear
628,342,000.5.09
453,183,370.20
2,094,147,226.72
447,821,000.94
3,763,083,942.95
Plus:Retrospectiveadjustmentcausedbymergerofentities
undercommoncontrol
Plus:Changeofaccountingpolicy
Correctingofpreviouserrors
II.Balanceatthebeginningofcurrentyear
628,342,000.5.09
453,183,370.20
2,094,147,226.72
447,821,000.94
3,763,083,942.95
III.Amountofchangeincurrentterm(“-“fordecrease)
125,668,400.00
10,294,548.34 65,357,369.03
355,573,663.14
8,303,349.81
565,197,330.32
(I)Netprofit
735,102,032.17
126,258,142.38
861,360,174.55
(II)Othermisc.income
Totalof(I)and(II)
735,102,032.17
126,258,142.38
861,360,174.55
(III)Investmentordecreasingofcapitalbyowners
15,200,000.00
15,200,000.00
1.Capitalinputtedbyowners
15,200,000.00
15,200,000.00
2.Amountofsharespaidandaccountedasowners’equity
(IV)Profitallotment
125,668,400.00
65,357,369.03
-379,528,369.03
-137,932,820.69
-326,435,420.69
1.Providingofsurplusreserves
65,357,369.03
-65,357,369.03
2.Commonriskprovision
3.Allotmenttotheowners(orshareholders)
125,668,400.00
-314,171,000.00
-119,486,887.82
-307,989,487.82
-18,445,932.87
-18,445,932.87
(V)Internaltransferringofowners’equity
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplusreserves
(VI)Specialreserves
10,294,548.34
4,778,028.12
15,072,576.46
1.Providedthisyear
10,835,589.65
5,285,183.46
16,120,773.11
2.Usedthisterm
541,041.31
507,155.34
1,048,196.65
(VII)Others
IV.Balanceattheendofthisterm
754,010,400.5.09
10,294,548.9.23
2,449,720,889.86
456,124,350.75
4,328,281,273.27
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
8.StatementofChangeinOwners’Equity(ParentCo.)
Preparedby:HangzhouSteamTurbineCo.,Ltd
AmountoftheCurrentTerm
AmountoftheCurrentTerm
Capitalpaidin(orshare
Less:Sharesin
Commonrisk
Retainedprofit Totalofowners’equity
I.Balanceattheendoflastyear
754,010,400.0.09
4,671,366.4.10
1,919,570,947.92
3,316,990,298.91
Plus:Changeofaccountingpolicy
Correctingofpreviouserrors
II.Balanceatthebeginningofcurrentyear
754,010,400.0.09
4,671,366.4.10
1,919,570,947.92
3,316,990,298.91
III.Amountofchangeincurrentterm(“-“fordecrease)
2,624,398.40 65,283,938.82
285,951,289.39
353,859,626.61
(I)Netprofit
652,839,388.20
652,839,388.20
(II)Othermisc.income
Totalof(I)and(II)
652,839,388.20
652,839,388.20
(III)Investmentordecreasingofcapitalbyowners
1.Capitalinputedbyowners
2.Amountofsharespaidandaccountedasowners’
(IV)Profitallotment
65,283,938.82
-366,888,098.81
-301,604,159.99
1.Providingofsurplusreserves
65,283,938.82
-65,283,938.82
2.Commonriskprovision
3.Alotmenttotheowners(orshareholders)
-301,604,159.99
-301,604,159.99
(V)Internaltransferringofowners’equity
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplusreserves
(VI)Specialreserves
2,624,398.40
2,624,398.40
1.Providedthisyear
4,832,002.89
4,832,002.89
2.Usedthisterm
2,207,604.49
2,207,604.49
(VII)Others
IV.Balanceattheendofthisterm
754,010,400.0.09
7,295,765.2.92
2,205,522,237.31
3,670,849,925.52
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
AmountofLastYear
AmountofLastYear
Capitalpaidin(orshare
Less:Sharesin
Commonrisk
Retainedprofit Totalofowners’equity
I.Balanceattheendoflastyear
628,342,000.0.09
434,426,965.07
1,645,525,626.62
2,847,247,841.78
Plus:Changeofaccountingpolicy
Correctingofpreviouserrors
II.Balanceatthebeginningofcurrentyear
628,342,000.0.09
434,426,965.07
1,645,525,626.62
2,847,247,841.78
III.Amountofchangeincurrentterm(“-“fordecrease)
125,668,400.00
4,671,366.80 65,357,369.03
274,045,321.30
469,742,457.13
(I)Netprofit
653,573,690.33
653,573,690.33
(II)Othermisc.income
Totalof(I)and(II)
653,573,690.33
653,573,690.33
(III)Investmentordecreasingofcapitalbyowners
1.Capitalinputedbyowners
2.Amountofsharespaidandaccountedasowners’
(IV)Profitallotment
125,668,400.00
65,357,369.03
-379,528,369.03
-188,502,600.00
1.Providingofsurplusreserves
65,357,369.03
-65,357,369.03
2.Commonriskprovision
3.Alotmenttotheowners(orshareholders)
125,668,400.00
-314,171,000.00
-188,502,600.00
(V)Internaltransferringofowners’equity
1.Capitalizingofcapitalreserves(ortocapitalshares)
2.Capitalizingofsurplusreserves(ortocapitalshares)
3.Makinguplossesbysurplusreserves
(VI)Specialreserves
4,671,366.80
4,671,366.80
1.Providedthisyear
4,671,366.80
4,671,366.80
2.Usedthisterm
(VII)Others
IV.Balanceattheendofthisterm
754,010,400.0.09
4,671,366.4.10
1,919,570,947.92
3,316,990,298.91
Legalrepresentative:NieZhonghai CFO:PuYangshuo AccountingManager:JiangRong
HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
HangzhouSteamTurbineCo.,Ltd.
NotestoFinancialStatements
I.CompanyProfile
HangzhouSteamTurbineCo.,Ltd.(theCompany)wasincorporatedasajointstocklimitedcompanyexclusively
promotedbyHangzhouSteamTurbine&PowerGroupCompanyLimited(“HSTG”)approvedbytheSecurities
RegulatoryCommissionoftheStateCouncilwiththeDocumentSRC[1998]No.8byofferingdomesticallylisted
foreigncurrencyordinaryshares(BShares),withregistrationdate:April23,1998,legalentitybusinesslicense
No.:企股浙总字第002150号.ThenumberofBusinessLicensewaschangedto023onMay6,
2009.TheCompany’sregisteredcapitalisnowincreasedtoRMB754.0104millionwithtotalcapitalshareof
754.0104millionshares(facevalueRMB1.00).Amongwhichstate-ownedlegalpersonshareswere479.8248
millionsharesand274.1856millionsharesofcurrentBshares.Theshareswereissuedandlistedfortradingin
ShenzhenStockExchangeonApril28,1998.ThescopeofmainbusinessesoftheCompany:Thedesign,
manufacturing,andserviceofsteamturbine,gasturbine,otherrotatingandreciprocatemachineryandauxiliary
equipment,andsparepartsandcomponents.Wholesale,import&export,andserviceofpackagedequipmentin
electricpowersupply,industrialdriving,andindustrialturbine.
II.Themainaccountingpoliciesandaccountingestimations
(I)Basisofcompilingthefinancereport
TheCompanyadoptsperpetualoperationasthebasisoffinancialstatements.
(II)StatementofcompliancetotheEnterpriseAccountingStandard
ThefinancereportproducedbytheCompanyisaccordancewiththeEnterpriseAccountingStandard,andreflects
theCompany’sfinancialstate,businessperformanceandcashflowfranklyandcompletely.
(III)Accountingperiod
TheCompanyusesthecalendaryearforitsfiscalyear.AfiscalyearisfromJanuary1toDecember31.
(IV)Standardcurrencyforbookkeeping
TheCompanyusesRenminbi(RMB)asthestandardcurrencyforbookkeeping.
(V)Accountingtreatmentoftheentitiesundercommoncontrolanddifferent
1.Treatmentofentitiesundercommoncontrol
Assetsandliabilitiesacquiredinmergerofentitiesaremeasuredatbookvaluesatthedateofmerger.The
differencebetweenthenetbookvalueofassetandtheofferedprice(ortotaloffacevalueofsharesissued)willbe
adjustewhenthecapitalreservesisnotenoughtoreduce,itwillbeadjustedintoretained
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HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
2.Treatmentofentitiesunderdifferentcontrol
Thedifferenceoftakeovercostoverthefairvalueofrecognizablenetassetoftheacquiredentityisrecognizedas
goodwiincasethetakeovercostislowerthanthefairvalueofrecognizablenetassetof
theacquiredentity,themeasuringprocessovertherecognizableasset,liabilities,contingentliabilities,and
takeovercost,shallberepeated,ifcomesoutthesameresult,thedifferenceshallberecordedintocurrentincome
(VI)Methodforpreparingtheconsolidatedfinancialstatements
Theparentcompanyputsallofitssubsidiariesunderitscontrolintotheconsolidatedfinancialstatements.The
consolidatedfinancial statementsareprepared accordingtothe“EnterpriseAccountingStandardNo.33–
ConsolidatedFinancialStatements”,basingontheaccountsoftheparentcompanyandthesubsidiaries,andafter
adjustingthelong-terminvestmentequityinthesubsidiaryonequitybasis.
(VII)Recognitionofcashandcashequivalents
CashequivalentreferstotheinvestmentheldbytheCompanywithshortterm,strongliquidityandlowerriskof
valuefluctuationthatiseasytobeconvertedintocashofknownamount.
(VIII)Foreigncurrencytradeandtranslationofforeigncurrencies
1.Translationofforeigncurrency
ForeigncurrencytradesaretranslatedintoRMBattherateofthedaywhenthetradesaremade.Thosebalancesof
foreigncurrenciesandmonetaryitemsinforeigncurrenciesareaccountedattheexchangerateofthebalancesheet
date.Exchangedifferences,otherthanspecialloanssatisfyingtheconditionsofcapitalization,areaccountedinto
currentincomeaccount.Non-monetaryitemsinforeigncurrenciesandonhistoricalcostaretranslatedattherate
ofthetradeday. Non-monetaryitemsinforeigncurrenciesandonfairvaluearetranslatedattherateoftheday
whenthefairvalueisrecognized,wherethedifferencesareaccountedasgain/lossfromchangeoffairvalue.
2.Translationofforeigncurrencyfinancialstatements
Assetandliabilityitemsinthebalancesheetaretranslatedbasingontheexchangerateo
Owners’equitiesotherthanRetainedProfitaretranslatedattheexchangerateofthedatewhenthetradehappened.
Incomeandexpenseitemsintheincomestatementaretranslatedatthesimilarrateofthedatewhenthetrade
happened.Differencesgeneratedbytheabovetranslatingofforeigncurrenciesaredemonstratedseparatelyunder
theowners’equityinthebalancesheet.
(IX)Financialinstruments
1. Typeoffinanceassetandfinancedebt
Financeassetsaredividedinitiallyintofourtypesoffinancialassetappointedtobemeasuredatfairvaluewith
theirchangesareaccountedintocurrentgain/lossaccounts(includingtransactionalfinanceassetandfinancialasset
appointedtobemeasuredatfairvaluewiththeirchangesareaccountedintocurrentgain/lossaccounts),
transactionalfinancialassets,debtandaccountreceivable,financeassetsaleable.
Financedebtsaredividedinitiallyintotwotypesoffinancialdebtappointedtobemeasuredatfairvaluewiththeir
changesareaccountedintocurrentgain/lossaccounts(includingtransactionalfinancedebtandfinancialdebt
appointedtobemeasuredatfairvaluewiththeirchangesareaccountedintocurrentgain/lossaccounts),other
financedebt.
2.Basisofrecognitionandaccountingoffinanceassetandfinancedebt
WhentheCompanyisonepartofthefinanceinstrumentcontract,onefinanceassetordebtisrecognized.When
onrecognizinginitiallyfinanceassetordebt,itismeasuredbyfairvalue,forthefinanceassetordebtwhich
appointedtobemeasuredatfairvaluewiththeirchangesareaccountedintocurrentgain/lossaccounts,therelated
transactionexpensesaredirectlyaccountedinforotherfinanceassetanddebt,therelated
transactionexpensesaccountedintotheinitialrecognitionaccount.
TheCompanyfuturemeasuresfinanceassetbyfairvaluewithoutdeductingfuturepossibletransactionfeebut
withexception:(1)Dueinvestment,debtandaccountreceivablearemeasuredbyactualinterestrateaccordingto
theamortizedcosts.(2)Equityinstrumentinvestmentwhichhavenoquoteinactivemarketandwhichfairvalue
can’tbemeasuredreliably,anditsderivedfinanceassetswhichareconnectedwiththeequityinstrumentand
whicharesummarizedthroughtheequityinstrument,aremeasuredbycost.
TheCompanyconductsuccessivemeasureoffinancedebtaccordingtoamortizedcostbyactualinterestratewith
exceptionasfollowing:(1)financedebtwhichappointedtobemeasuredatfairvaluewiththeirchangesare
accountedintocurrentgain/lossaccounts,ismeasuredatfirvaluewithoutdeductingpossiblefuturetransactional
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HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
(2)Equityinstrumentinvestmentwhichhavenoquoteinactivemarketandwhichfairvalue
can’tbemeasuredreliably,anditsderivedfinanceassetswhichareconnectedwiththeequityinstrumentand
whichareclosedoffthroughtheequityinstrument,aremeasuredbycost.(3)financedebtsponsorshipcontracts
whicharenotappointedtobemeasuredatfairvaluewiththeirchangesareaccountedintocurrentgain/loss
accounts,ordebtagreementsatratelowerthanmarketrateandwhicharenotappointedtobemeasuredatfair
valuewiththeirchangesareaccountedintocurrentgain/lossaccounts,aremeasuredatthehighervaluebetween
theoptimalestimatedvaluepayableaccordingtocurrentobligationsandthesurplusvaluefromwhichtheinitial
recognitionvaluededucttheaccumulatedamortizedamountaccordingtotheactualinterestrate.
Gainorlossfromfluctuationoffinancialassetsorliabilitiesarehandledatthefollowingways,exceptforrelating
tohedgeinstrument.
(1)Gainorlossfromfluctuationoffairvalueoffinancialassetsorliabilitiesandaccountedintocurrentgain/loss
account,areaccountedintogain/lossoffluctuationoffairvalue.Interestsorcashdividendreceivedintheperiod
ofholdingtheseassetsarerecognizedasinvestmentgains.Whentheyaredisposed,thedifferencebetweenthe
amountactuallyreceivedandinitiallybookedvalueisrecognizedasinvestmentgains,andadjustthegain/loss
fromfairvaluefluctuation.
(2)Fluctuationoffairvalueofsellablefinancialassetsaccounteinterestsgainedatactual
interestrateareaccountinthecashdividendreceivedfromsellableinstrumentinvestment,
areaccountedintoinvestmentAtdisposaloftheseinvestment,thedifferencebetween
actualamountreceivedandbookvaluearerecognizedasinvestmentgainsafterdeductingofaccumulatedchange
offairvaluewhichareoriginallyaccountedintocapitalreserves.
Assoonasthecontractrightsofacquiringthecashflowofparticularfinancialassethavebeenterminatedor
almostalloftherisksandrewardsattachedtothefinancialassethavebeentransferred,recognitionofthefinancial
assoonasthecurrentliabilitiesattachedtothefinancialliabilityhavebeencompletelyor
partiallyrelieved,recognitionofthefinancialliabilityorpartofisterminated.
3.Basisofrecognitionandaccountingoffinancialassettransferring
TheCompanystoprecognizingthefinanceassetwhichrisksandremunerationofownershiparetransferredtothe
andcontinuetorecognizethetransferredfinanceassetwhichrisksandremunerationofownershipare
kept,andrecognizethevalueasonefinancedebt.Forthefinanceassetswhichrisksandremunerationof
ownershiparenottransferredorkept,theCompanyrecognizethemasfollowing:(1)stoprecognizingthefinance
assetwhich(2)continuetorecognizethefinanceassetandrelatedfinancedebtaccording
totheextendwhichinvolvedintothetransferredfinanceassetforthefinanceassetwhicharenotgivenupcontrol.
TheCompanymeasuredthesurplusbetweenthefollowingtwovaluesforthetransferredfinanceassetswhich
fulfillthestoprecognitionrequirementsintocurrentgainorloss:(1)Accountvalueofthetra
(2)Considerationplustheaccumulatedfairvaluechangeswhichwereaccounteddirectedintoownershiprights.
ForthetransferredfinanceassetswhichpartlyfulfillthestoprecognitionrequirementstheCompanyamortizedthe
stoppedrecognitionpartandthenot-stoppedrecognitionpartof theaccountvalueofthewholetransferred
financeasset,andaccountthesurplusbetweenthefollowingtwovaluesintocurrentgainorloss:(1)Account
valueofthest(2)considerationplusthecorrespondingstoppedrecognitionpartofthe
accumulatedfairvaluechangeswhichwereaccounteddirectedintoownershiprights.
4.Basisofrecognitionandaccountingoffairvalueforthemainfinanceassetandfinancedebt
Forthefinanceassetordebtwhichactivemarketexists,theCompanyrecognizethefairvalueaccordingtothe
quforthefinanceassetordebtwhichactivemarketnotexists,theCompanyrecognized
thefair valueusingestimationtechnology(includingreferenceofthelatestmarketpricesfromfreewill
transactionsbypersonsfamiliarwithconditions,referenceofthecurrentfairvalueofothersimilarfinance
instrumentincharacteristics,discountedcashflowmodelsandOptionPricingModel);fortheinitiallyacquiredor
initialfinanceassetorfinancedebt,theCompanyrecognizethefairvaluebasisonthemarkettradingprice.
5. Impairmenttestandimpairmentreservesplan
(1)TheCompanyconductimpairmenttesttothefinanceassetotherthanwhichappointedtobemeasuredatfair
valuewiththeirchangesareaccountedintocurrentgain/lossaccountsonbalancesheetday.Impairmentprovision
isprovidedaslongasevidenceshowingthatimpairmenthashappenedtothefinancialasset.
(2)TheCompanyconductindependentlyimpairmenttestforsinglefinanceassetwithlargevalueforsingle
financeassetwithlittlevaluetheCompanyconducttheimpairmenttestwiththoseofthefinanceasset
compositionwhichhavesimilarcrediforthenonimpairmentassetswhicharetested
independently,theCompanyconducttheimpairmenttestwiththoseofthefinanceassetcompositionwhichhave
similarcreditriskcharacteristics.
(3)Forthefinanceassetaccountedbyamortizedcostwhichhavesubjectimpairmentevidenceattheendterm,the
impairmentlosswasrecognizedaccordingtothedifferencebetweentheaccountvalueandtheanticipatingfuture
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HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
cashflow,forthefinanceassetwhichhavelittledifferencebetweenitsshorttermaccountreceivableanticipating
futurecashflowanditscurrentvalue,theCompanydon’tdiscountthefuturecashflowwhenrecognizingrelated
impairmentloss. WhenthereisimpairmentlossfortheEquityinstrumentinvestmentwhichhavenoquotein
activemarketandwhichfairvaluecan’tbemeasuredreliablyanditsderivedfinanceassetswhichareconnected
withtheequityinstrumentandwhicharecalculatedthroughtheequityinstrument,aremeasuredbycost,the
differenceisrecognizedasimpairmentlossbetweentheaccountvalueoftheequityinstrumentinvestmentandits
derivedfinanceassetandthecurrentvaluediscountedbythefuturecashflowaccordingtothemarketprofitrateof
thesimilarfinanceasset.TheCompanyrecognizetheimpairmentlossforthesaleablefinanceassetwhichfair
valuehavesharpdecreasingandtheanticipatingdecreasingtrendisnottemporary,andaccountitintoimpairment
losstogetherwiththeaccumulatedfairvalelosswhichwasaccountedintoowner’sequitydirectly.
Whenimpairmentoccurredwithasellablefinancialasset,theaccumulatedlossescausedbydecreasingoffair
valuewhichhaveoriginallybeenwrittenintoowners’equityshallbecarriedovertocurrentgain/lossaccount.If
practicalevidenceshowingthatthevalueofaparticularfinancialassethasrecoveredinvalueafteraimpairment
losshasbeenrecognizedandpracticallyrelatedtotheissuesoccurredafterrecognitionoftheloss,theimpairment
lossrecognizedshall berestoredandaccountedintocurrentgain/loss. Impairmentlossofsellableequity
investmentinstrumentwillberestored toowners’equitywhenthefairvaluehasincreasedafterward.
(X)Receivableaccounts
1.Recognitionandprovidingofbaddebtprovisiononindividualreceivableaccountwithlargeamount
Basis of recognition or standard Accountstakeover10%ofthebookbalanceofreceivable
amountofindividualaccountwith
largeamount
Impairmenttestperformedindividually,baddebtprovision
Basisofbaddebtprovision
willbeprovidedatthedifferenceofexpectedcashflow
lowerthanthebookvalue.
2. Recognitionandprovidingbasisofbaddebtreservesforgroupofreceivableaccountswithsimilar
characteristicsofcreditrisks
(1)Basisofrecognitionandprovidingofbaddebtprovision
Basisofrecognitionforgroups
Groupbyageanalysis
Withsimilarcharacteristicsofcreditrisks
Basisofbaddebtprovision
Groupbyageanalysis
Ageanalysismethod
(2)Ageanalysis
Provisionratefor
Rateforotherreceivables
receivables(%)
Within1yr,(included,sameforthe
followings)
Over3years
3.Recognitionandprovidingmethodsofreceivableaccountwithminoramountandunderindividualimpairment
Whenthereissignificantdifferencebetweenthecurrentvalueoffuture
Basisofprovidingbad cashflowofthereceivableaccountandthecurrentvalueoffuturecash
debtindividually
flowofthegroup
Impairmenttestperformedindividually,baddebtprovisionwillbe
debt providedatthedifferenceofexpectedcashflowlowerthanthebook
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HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
Asforotherreceivableaccountssuchasnotes,prepayments,interests,andlong-termreceivables,baddebt
provisionswillbeprovideduponthedifferencesofexpectablecashflowlowerthanthebookedvalue.
Nobaddebtprovisionsareprovidedforreceivableaccountsamongthecompaniesthatareincludedinthe
consolidatingrange.
(XI)Inventories
1.Categorizingofinventories
Inventoriesincludesaleablefinishedgoodsormerchandise,product-in-process,consumptionmaterialandgoods
inmanufacturingprocedureorworkingprocedure.
2.Pricingofdeliveringinventory
Deliveredoutmaterialsareaccountedbyweightedaveragemethod,issuedoutfinishedproductsareaccountedat
individualprice.
3.Recognitionofinventoryrealizablevalueandprovidingofimpairmentprovision
Atthebalancesheetday,inventoriesaremeasuredatthelowerofcostsandcashablenetvalues,theindividual
differencebetweenthecashablenetvalueandcostareprovidedasinventoryimpairmentprovision.Forfinished
product,merchandise,saleablematerialandothersaleablemerchandiseinventory,theircashablenetvaluesare
recognizedbytheirestimatedsalepriceinnormaloperationdeductingestimatedsaleexp
formaterialinventorywhichneedprocessing,itcashablenetvaluearerecognizedbytheestimatedsalepricesof
itsfinishedproductsinnormaloperationdeductingtheestimatedcost,saleexpensesandrelatedtaxesduetothe
Atthebalancesheetday,forinventoryitemwhichparthascontractpriceandparthasno
contractprice,thecashablenetvalueisaccountedseparately,andrecognizetheinventoryimpairmentprovisionor
returnablecash.
4.Inventorysystem
Inventoryisinventoriedbyperpetualinventorysystem
5.Amortizingoflow-valueconsumablesandpackagingmaterials
Low-valueconsumablesandpackagingmaterialsareamortizedonone-offbasis.
(XII)Long-termequityinvestment
1.Recognitionofinitialinvestmentcosts
(1)Forthelong-termequityinvestmentformedbycorporatemergerundercommoncontrol,ifitisthelong-term
equityinvestmentobtainedfromthecorporatemergerbypayingcash,transferringnon-cashasset,bearliability
andissuingequitysecurities,theshareofbookvalueofowner'sequityofthemergedpartyonthemergerdate
shallbetakenastheinitialinvestmentcost.Theassetreserveisadjustedaccordingtothedifferencebetweenthe
initialinvestmentcostoflong-termequityinvestmentandthebookvalueofpaidcombinedconsiderationorissued
ifthecapitalisnotenoughfordeduction,theremainearningsareadjusted.
Theinitialinvestmentcostsofthoselong-termequityinvestmentwhichwasformedbyacquisitionofentities
undercommoncontrolbystagesarebookedattheshareofthebookvalueoftheowners’equityoftheentitiesat
thedateofacquisitionintheindividualandconsolidatedfinancialstatements.Capitalreserveisadjustedbythe
differencebetweenthesumofbookvalueofequityinvestmentintheentitiesacquiredandthenewlyincreased
investmentcostandtheinitialcostofthelong-retainedincomeshallbeadjustedincasethecapital
reserveisnotenoughtobededucted.
(2)Forthelong-termequityinvestmentsformedbymergerofenterprisesunderdifferentcontrol,theinitial
investmentcostisrecognizedbythefairvalueofcombinedconsiderationonpurchasingdayandrelatedexpenses.
Long-termequityinvestmentformedbyacquisitionofentitiesunderdifferentcontrolbytradeinmultiplestages
areaccountedseparatelyinthefinancialstatementsandconsolidatedfinancialstatements.
1)Inindividualfinancialstatements,initialcostofaninvestmentisthesumofbookvalueoftheequityinthe
acquiredentitybeforetheacquisitiondayandthenewlyincreasedinvestmentcostattheacquisitionday.Incase
theshareequityoftheacquiredentitybeforetheacquisitiondaywasinvolvedinothergains,theyshallbe
transferredtocurrentinvestmentgainswhentheinvestmentisdisposed.
2)Intheconsolidatedfinancialstatements,theequityheldbeforetheacquisitiondayshallberecalculatedonfair
valuebasisattheacquisitionday.Thedifferencesbetweenthebookvalueandfairvalueshallbeaccountedinto
currentinvestmentgains.Incasetheshareequityoftheacquiredentitybeforetheacquisitiondaywasinvolvedin
othergains,theyshallbetransferredtocurrentinvestmentgainsofthecurrentperiod.
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(3)Forthelong-termequityinvestmentsformedbyotherthanmergerofenterprises:ifitisgottenbypayingcash,
theinitialinvestmentcostisrecognizedbypuifitisgottenbyissuingequitysecurities,
theinitialinvestmentcostisrecognizedbythefairifitisgottenbyinvestor’sinvestment,
theinitialinvestmentcostisrecognizedbyinvestmentcontractoragreedvalueincontract(exceptthenotfair
contractvalue).
2.Subsequentmeasurementandrecognitionofgain/loss
Costbasisisadoptedinaccountingofthoselong-termequityinvestmentsbywhichtheCompanyhassubstantial
control,andisadjustedincomposingcombinedfinancereportacandthosehasnocommon
controlormajorinfluencewithoutquotationinanactivemarketandthefairvaluecannotbereliablymeasuredis
alsorecalculatedbycostbasis. Andequitybasisisadoptedinaccountingofthoselong-termequityinvestments
bywhichtheCompanyhasjointcontrolormajorinfluenceontheinvestedenterprise.
3.Basisofrecognizingcommoncontrolandsignificantinfluence
Accordingtothecontract,iftheinvestedenterprise’smainfinanceandoperationpolicyneedtobeagreedbythe
otherinvestingparty,theinvestmentiscomifonlyhaveparticipatingdecisionrightsin
investedenterprise’smainfinanceandoperationpolicybuthavenoowncontrolorcommoncontrolwithother
investingpart,theinvestmentisinvestmentwithmajorinfluence.
4.Impairmentexaminationandprovidingofimpairmentprovision
Whenphysicalevidenceshowingthattheinvestmentinsubsidiaries,affiliates,andjointventuresareimpaired,
impairmentprovisionshallbeprovideduponthebalancebetweenthebookvaluwherethe
longtermequityinvestmentwithnocontrolpowerorsignificantinfluenceandhasnoquotationinanactive
marketandthefairvaluecannotbereliablymeasured,long-terminvestmentimpairmentprovisionwillbe
providedaccordingto“EnterpriseAccountingStandardNo.22–Recognitionandmeasureoffinancialinstrument.
5.Treatmentofdisposalofsubsidiariesbystagestilllosingofcontrolpower
(1)WhentheCompanyisdisposingsubsidiariesbystagestilllosingofcontrolpower,thefollowingstepsshallbe
followedunlessthedifferentstageswereunderthesamecontract.
1)Treatmentofpartialinvestmentpriortolosingofcontrolpower
WhentheCompanyisdisposinginvestmentinasubsidiary,butisnotlosingthecontrolpoweronit,treatments
willbedoneinindividualfinancialstatementsandconsolidatedfinancialstatements:intheindividualfinancial
statements,thebookvalueoftherelativelong-terminvestmentshallbetransferred,thedifferencebetweenthe
disposalgainandbookvalueoftheinvestmentshallberecognizedasdisposalgain/loss.Intheconsolidated
financialstatements,thedifferencebetweenthedisposalgainsandtheshareofnetassetofthedisposedentity
shallbeadjustedtocapitalreserves(capitalpremium).Incasethecapitalpremiumisnotenoughfordeduction,it
willbedeductedfromretainedprofit.
2)Ifcontrolpowerislostduetodisposalofpartialshareequity,itshallbetreatedseparatelyinindividual
financialstatementsandconsolidatedfinancialstatements:
Inindividualfinancialstatements,thebookvalueofthelong-termequityinvestmenttobedisposedshallbe
transferred,andthedifferencebetweenthedisposalgainandbookvalueoftheinvestmentshallberecognizedas
disposalgain/loss.Meanwhile,thebookvalueofthereservedshareequitiesshallberecognizedaslong-term
equityinvestmentorotherrelativefinancialassetsattheirbookvalues,andshallbechangedfromcostbasisto
equitybasisinaccounting.
Intheconsolidatedfinancialstatements,thereservedequityshallberecalculatedforfairvalueatthedateofsuch
changewashappened.Thesumofconsiderationobtainedfromdisposalofequityandthefairvalueofretained
equitieslesstheshareofnetassetsincetheacquisitiondateshallbeaccountedintoinvestmentgainsoftheterm
whenthedisposalwashappened(Goodwillshallbedeductedifthereis).Othergainsrelatedtotheinvestment
shallbetransferredtoinvestmentgainsoftheterm.
(2)Incasethedifferentstagesofadisposalisunderacommoncontract,itistreatedinthesamewayasthosenot
underacommoncontractintheindividualfinancialstatements.Whileintheconsolidatedfinancialstatements,
eachstageofthetradeshallbetreatedasasingledisposalofsubsidiarywithlosingofcontrolpower.Howeverthe
differencesbetweenthegainofeachdisposalandtheshareofnetassetinthedisposedentityshallberecognized
asotherincomeintheconsolidatedfinancialstatements,andshallbetransferredtocurrentgain/lossofthecurrent
periodwhenthelosingofpowerwashappened.
Whenanyorsomeofthefollowingconditionsweresatisfied,adisposalinmultiplestagesshallberegardedas
underacommoncontract:
1)Thetradesareengagedsimultaneouslyorwithconsideration2)Thetradesare
conductedasnecessarypartso3)Occurringofoneparticulartradeisdependenton
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occurringofat4)Atradeisconsiderednoteconomicallyappropriateunlesscombined
withothertrade(s).
(XIII)Fixedassets
1.Recognition,pricinganddepreciationoffixedassets
Fixedassetsisdefinedasthetangibleassetswhichareheldforthepurposeofproducinggoods,providingservices,
leaseorforoperation&management,andhavemorethanoneyearofservicelife.
Fixedassetsarebookedatpracticalcost.Depreciationstartedatthenextmonthoftheassetbecomeusableonage
averagebasis.
2.Depreciationoffixedassets
Salvagevalue
Depreciationage(yrs)
Annualdepreciationratio(%)
Houses&buildings
Officeequipment
3.Impairmenttestingandimpairmentprovisions
Atthebalancesheetday,ifthereisevidenceofimpairmentoccurredtotheconstructioninprocess,impairment
provisionwouldbeprovidedatthebalancebetweenthebookvalueandretrievablevalue.
4.Recognitionandpricingbasisoffixedassetfromfinancedleasing
Financedleaseisrecognizedwhenoneorseveralofthefollowingconditionsissatisfied:
(1)Theownershipovertheleasedassetistransferredtothelesseeonexpirati
(2)Itisthelessee’soptionto,ornotto,buytheleasedasset.Howeverthepredictedfinalconsiderationoftheasset
willfarlowerthanitsoriginalfairvalue.Thereforeitcanberationallydeterminedthatthelesseewilluseits
optiontobuyofftheasset.
(3)Theownershipisnottransferred,buttheleasingperiodistakingmostoftheservicelife(usually75%orover
oftheservicelifeoftheleasedasset).
(4)Thecurrentvalueofthelowestpaymentmadebythelesseeatthecommencingdateoftheleaseisalmostequal
to(90%oroverof)thefairvalueoftorthecurrentvalueofthelowestamountreceived
bytheleaseratthecommencingdateoftheleaseisalmostequalto(90%oroverof)thefairvalueoftheassetat
(5)Theassettobeleasedisspecializedfortheuseofthelessee,namelycouldnotbeusedbyotherswithoutmajor
reconstruction.
Fixedassetleasedonfinanceisbookedattheloweroneofthefairvalueatthecommencingdateandthecurrent
valueofthelowestrental.
(XIV)Constructioninprocess
1.Constructioninprocessisrecognizedonthebasisofcharacteristics:verypossibleeconomicbenefitflowin,
costcanbemeasuredreliably.Sincethedatewhentheconstructioninprocessreachesitsusefulstatusasexpected,
theconstructioninprocessismeasuredbythehappenedcostSincethedatewhentheconstructioninprocess
reachesitsusefulstatusasexpected.
2.Whentheconstructioninprocessreachesitsusefulstatusasexpected,itistransferredintofixedassetatactual
cost.Iftheconstructioninprocesshasreachedusefulstatusbutwithcompletionofprojectsettlementprocess,itis
transferredtofixedassetatthevalueestimated,andadjustmentwillhappenaftercompletionofprojectsettlement
processbutnoadjustmentondepreciationprovidedpreviously.
3.Whenthereisevidenceshowingthattheconstruction-in-processhasimpairedatthebalancesheetday,
impairmentprovisionshallbeprovidedatthebalanceofthebookvalueovertheretrievableamount.
(XV)Loanexpenses
1.Capitalizingofloanexpenses
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LoanexpensesoccurredintheCompany,whichcanbecategorizedtopurchasingorconstructionofassets
satisfyingtheconditionsofcapitalization,shallbecapitalizedandaccouwhileotherloan
expensesarerecognizedasexpensesandrecordedintocurrentincomeaccount.
2.Capitalizationperiodofloanexpenses
(1)Capitalizationstartedassoonasalloftheseconditionsaresatisfied:1)Capitalexpe2)
Loan3)Necessarypurchasingorconstructionprocesseshavebeenstartedtomakethe
assetusableorsellable.
(2)Ifirregularinterruptionoccurredinthepurchasingorconstruction processoftheassetssatisfyingthe
capitalizingconditions,and suspendedfor oversuccessivethreemonths,capitalizingofloanexpensesis
loanexpensesoccurredduringthesuspensionperiodarerecognizedascurrentexpensesuntilthe
purchasingorconstructionprocessresumes.
(3)Capitalizingofloanexpensesisterminatedassoonastheassetsatisfyingthecapitalizingconditionsreaches
thestateofusableorsellableasexpected.
3.Amountofloanexpensecapitalization
Specialloansraisedforpurchasingorconstructionofassetssatisfyingtheconditionsofcapitalization,interestto
becapitalizedwillbetheactualinterestexpensesoccurredinthecurrentperiodofloan(includingthediscount,
premium,oramortizingdecidedonactualinterestratebasis),lesstheinterestincomefromtheunusedloansin
bankaccountorproviscommonloansusedforpurchasingorconstructionofassets
satisfyingtheconditionsofcapitalization,theinteresttobecapitalizedwillbetheweightedaverageofbalance
overspecialloansmultiplycapitalizationrateofcommonloans.
(XVI)Intangibleassets
1.Intangibleassetsarelandusingrights,patents,andnon-patenttechnologies,whicharemeasuredatcostbasis.
2.Forintangibleassetswithlimitedusefullife,duringtheuselifeitisamortizedaccordingtotheanticipating
implementationmethodoftheeconomicbenefitoftheintangibleassetsystematicallyandreasonably.Ifcan’t
recognizetheanticipatingimplementationmethod,thestraightbasisisdeployed.
Amortizingyears
Landusingright
Operationrightsofwasteheatpowerplant
onactualoperationterm
3.Incaseevidenceofimpairmentexistsonbalancesheetdayonintangibleassetswithdefiniteusefullife,
impairmentprovisionshallbeprovidedonthebalanceofbookvalueovertherecoverableamountoftheintangible
asset.Whereasforintangibleassetswithoutdefiniteusefullifeornotusableyet,impairmenttestsshallbe
conductedwhetherornotthereisevidenceofimpairment.
4.Expendituresofinternalresearchingprojectsareaccountedintocurrenttermgainandlosswhenhappens.The
developmentperiodexpendituresarerecognizedasintangibleassetswhenfulfillfollowingconditions:(1)The
intangibleassetiscompletedandtechnicallypo(2)Withintentiontocompletethe
intangibleassetf(3)Evidenceshowingthattherearemarketsortheproductsproduced
withusingoftheintangibleasset,ormarketsoftheintangibleassetitself,bywhichtheintangibleassetmay
producefinancialbenefits.IntangibleassetsusedinsidetheCompanymustbeapprovedfortheirusablecharacters.
(4)Developingoftheintangibleassetsaresupportedbysufficienttechnical,financial,andotherresources,andthe
intangibleassetscanbeusedorsold.(5)Expendituresoccurredindevelopingoftheintangibleassetmaybe
reliablymeasured.
(XVII)Long-termamortizableexpenses
Long-termamortizableexpensesarerecordedatactualamountoccurred,andstraightamortizedtostipulated
periods.Incasealong-termexpensewasnotbenefitingthesucceedingperiods,thenthebalanceoftheaccount
shallbetransferredovertocurrentincomeaccount.
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(XVIII)Revenue
1.Recognizingofrevenue
(1)Salesofgoods
Salesincomeisrecognizedwhenalloftheseconditionsaresatisfied:(1)Majorrisksandrewardsattachedtothe
goodshavebeentrans(2)TheCompanyholdsneithersuccessivemanagementpower
whichisnormallyattachedtoownership,noreffectivecontrol,overthegoods(4)
Amountofincomem(5)whenthecosts,occurredorwilloccur,maybemeasured
(2)Providingofservices
Atbalancesheetday,thoseservicetrades(simultaneouslysatisfyingtherequirementsofthose:incomecanbe
measuredreliably,relatedeconomicbenefitwillflowinverypossibly,transactionprocedurecanbeconfirmed
reliably,happenedandhappeningcostcanbemeasuredreliably)whichcanbereliablyestimatedarerecognizedat
thepercentageofcompletion,andprogressofcompletionofserviceisdecidedbytheportionofcostsoccurred
overtheestimatedtotalcosts.Atbalancesheetday,thoseservicetradeswhichcannotbereliablyestimated,ifthe
happenedservicescostwillbecompensated,theservicesincomearerecognizedaccordingtohappenedservice
costandtransitedtoservicecostaifthehappenedservicescostwillnotbecompensated,
thehappenedservicescostareaccountedintocurrentterm’sgainorlossandtheservicesincomewillnotbe
recognized.
(3)Givingofassetusingrights
Incomefromgivingofassetsisrecognizedwhensatisfyingrequirements:relatedeconomicbenefitflowsinvery
possibly,incomecanbemeasuredreliably.Amountofinterestincomeiscalculatedaccordingtothetimeand
actualinterestrateofthemonetarycapitalisusedbyotherparty.Incomeofusingfeeiscalculateduponthecharge
periodandcalculationprovidedbytherelatedcontractoragreement.
(4)Constructioncontracts
Whentheresultoftheconstructioncontractisabletobeevaluatedreliablyatthebalancesheetdate,the
incomeandcostofthecontractarerecognizedoncompletionpercentagebasis.Iftheresultofthe
constructioncontractisnotabletobeevaluatedreliably,butthecontractcostmayberecovered,theincome
isrecognizedatthecostactuallyrecovered,andthecostofthecontractisrecognizedascontractexpensesof
thecurrentperiodwhenitisoccurred.
Whenallofthefollowingconditionsweresatisfied,theresultofafix-amountcontractisregardedascanbe
evaluatedreliably:thetotalincomeofthecontractmaybemeasuredreliably,thereisgreatpossibilitythat
thefinancialbenefitinrelationwiththecontractwillinflow,theactualcontractcostsmaybeidentifiedand
measuredclearlyandreliably,theconstructionprogressandthecosttooccurareabletobemeasured
reliably.Whenallofthefollowingconditionsaresatisfied,theresultofacost-plus-commissioncontractis
regardedascanbeevaluatedreliably:thereisgreatpossibilitythatthefinancialbenefitinrelationwiththe
contractwillinflow,theactualcostsmaybeidentifiedandmeasuredclearlyandreliably.
Contractprogressisrecognizedattheratioofaccumulativeactualcostonthepredictedcompletecost.
Incasetheexpectedtotalcostisgreaterthanthetotalincome,theexpectedlosswillberecognizedas
expenseofthecurrentperiod.Iftheconstructionisinprocess,thebalanceisaccountedasinventory
ifthecontractisnotexecuted,thebalanceisaccountedasexpectedliability.
2.Practicalbasisforrecognitionofrevenue
TheCompanyismainlyengagedindesigning,manufacturing,sales,andserviceofsteamturbinesandgasturbines
fallingintherangeofrotatingandreciprocatingmachinery,andparts.Recognitionofsalesinthecountryshall
satisfy:productshadbeendeliveredtothebuyerandtheamounthadbeenfixed.Paymentwasreceivedor
documentsreceivedwithgreatpossibilityofcashinflow.Andthecostoftheproductsisabletobemeasured
appropriately.Recognitionofsalesoutsidethecountryshallsatisfy:Thegoodshadbeenfiledbythecustomand
departedwithbillofladingobtained.Theamounthadbeenfixed,andpaymentwasreceivedordocuments
receivedwithgreatpossibilityofcashinflow.Andthecostoftheproductsisabletobemeasuredappropriately.
(XIX)Governmentsubsidy
1.Governmentsubsidiesaredividedintoasset-relatedsubsidiesandincome-relatedsubsidies.Government
subsidiestheCompanyobtainedforpurchasing,orbyotherways,oflong-termassetsarecategorizedas
asset-relatedsubsidies.Governmentsubsidiesotherthantheaforesaidarecategorizedasincome-relatedsubsidies.
2.ReceivablegovernmentsubsidyisrecognizedwhenthereisevidenceshowingthattheCompanyiscomplying
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withtheregulationsandrelativeconditionstoobtainthesubsidy,andthesubsidyisabletoinflow.Subsidiesare
recognizedatreceivingotherthantheaforesaid.
3.Monetarygovernmentsubsidiesaremeasuredonactualamounon-monetarysubsidies
arwhennofairvalueisavailable,measuredatnamedamount.
4.Asset-relatedgovernmentsubsidiesarerecognizedasdeferredincome,amortizedstraighttoitsusefullifeand
recordedintocurrentincomeaccount.Thoseincome-relatedgovernmentsubsidiesusedtomakeupexpensesor
lossesinsucceedingperiodsarerecognizedasdeferredincomeandrecordedincurrentincomeaccountatthe
relatedthoseusedtomakeupexpensesorlossesalreadyoccurredarerecordedintocurrent
incomeaccountinstantly.
(XX)Deferredincometaxassets/deferredincometaxliabilities
1.Deferredincometaxliabilitiesorassetsarerecognizedatproperrateinthetermofretrievingtheassetsor
payingtheliabilitiesaccordingtodifference(fornotrecognizedassetsandliabilitieswhichtaxbasiscanbe
recognized,thedifferenceisbetweenthetaxbasisandthebookvalue)betweenbookvalueoftheassetsor
liabilitiesandthetaxbasis.
2.Deferredincometaxassetsarerecognizedlimitedlybytheincometaxwhichverypossiblydeductdeductible
temporarydifference.Atbalancesheetday,thenot-yetrecognizeddeferredincometaxassetsinpreviousfiscal
termarerecognizedifhaveevidencetoprovethereisenoughincometaxverypossiblytodeductdeductible
temporarydifference.
3.Atthebalancesheetday,verificationwillbeperformedonthebookvalueofdifferedincometaxassets.Ifitis
notpossibletoobtainenoughtaxableincometoneutralizethebenefitofdifferedincometaxassets,thenthebook
valueofthedifferedincometaxassetsshallbereduced.Wheneverobtainingoftaxableincomebecamepossible,
thereducedamountshallberestored.
4.Currentincometaxanddifferedincometaxareaccountedintocurrentgain/lossaccountasincometax
expendituresorgains,butexcludethefollowingincometaxes:(1)M(2)Transactionsor
eventsrecognizeddirectlyinowners’equity.
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III.Taxations
(I)Maintaxesan
Classoftaxes
salesofgoodsorprovidingoftaxablelaborservice
Operationaltax
Taxableturnover
Forthoseonpricebasis,taxesarepaidat1.2%ofthebalanceof
Propertytax
originalvalueofthepropertyafterdeductingof30%;forthoseon
rentalbasis,taxesarepaidat12%oftherental.
Citymaintenanceand
Turnovertaxpayable
constructiontax
Educationsurtax
Turnovertaxpayable
Turnovertaxpayable
surcharges
Enterpriseincometax
Amountofincometaxable
[Note]HangzhouZhongnengSteamTurbinePower(Indonesia)Co.,Ltd.isasubsidiaryincorporatedinIndonesia.
Itissubjecttolocaltaxregulations.TheCompanyanditssubsidiaries–HangzhouZhongnengSteamTurbine
PowerCo.,Ltd.,HangzhouSteamTurbineCastingCo.,Ltd.,ZhejiangHuayuanSteamTurbineMachineryCo.,
Ltd.,andHangzhouGuonengSteamTurbineEngineeringCo.,Ltd.aresubjectto15%oftax,andtherestof
subsidiaries(domestic)aresubjectto25%oftax.
(II)Preferabletaxpoliciesandapprovingdocuments
1.Accordingtothedocument“NoticeforQualificationof1125EnterprisesasHigh-techEnterprises”(浙科发高
〔号)issuedbyZhejiangDepartmentofScienceandTechnology,ZhejiangDepartmentofFinance,
ZhejiangNationalTaxBureau,andZhejiangLocalTaxBureau,theCompanyandHangzhouZhongnengSteam
TurbinePowerCo.,Ltd.–subsidyoftheCompany,werequalifiedashigh-techenterprisesfortermofthreeyears.
Thereforeweenjoy15%oftaxfor.
2.Accordingtothedocument浙科发高〔号titled“NoticeforRecognitionof491High-tech
Enterprises”issuedjointlybyZhejiangBureauofScienceandTechnology,ZhejiangBureauofFinance,Zhejiang
NationalTaxBureau,andZhenjiangLocalTaxBureau,HangzhouSteamTurbineCastingCo.,Ltd.was
recognizedasaHigh-TechEnterprise,thereforeenjoys15%ofincometaxratefrom.
3.Accordingtodocument浙科发高[号issuedbyZhejiangDepartmentofScienceandTechnology,
ZhejiangHuayuanSteamTurbineMachineryCo.,Ltd.andHangzhouGuonengSteamTurbineEngineeringCo.,
Ltd.wererecognizedasHigh-techEnterprisesof2011.HangzhouSteamTurbineAuxiliaryMachineryCo.,Ltd.
areenjoyingthepreferentialtaxrateof15%fortheyears.
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IV.Enterpriseconsolidationandconsolidatedfinancialstatements
(I)Profilesofsubsidiaries
Subsidiariesobtainedthroughincorporationorinvestment(Shareproportioninthetablereferstotheshareoftheparentcompany).
Subsidiaries
Registered
Organizati
Fullnameofthesubsidiary
BusinessScope
ZhejiangSteamTrubinePackaged
Controlled
Developmentofelectrical&mechanicalequipmentcontrolunitand
Technologies DevelopmentCo.,
Manufacturing
subsidiaries
technicalconsultingservice
Ltd.(thePackagedTechCo.)
Designingandmanufacturingofsteamturbinesandsupplementary
Controlled
Manufacturing
92.5salesoftheCompany’contractingand
subsidiaries
(ZhongnengCo.)
consultingofmid-smallsizepowerplants
HangzhouSteamTurbineCasting
Controlled
Manufacturingofcastinstallationand
Manufacturing
Co.,Ltd.(CastingCo.)
subsidiaries
maintenancsalesoftheCompany’sproducts
Controlled
Manufacturingandprocessingofsteamturbineauxiliarypartsand
MachineryEquipmentCo.,Ltd.
Manufacturing
subsidiaries
othermachineryauxiliaryparts
(MachineryEquipmentCo.)
Controlled
AuxiliaryMachineryCo.,Ltd.
Manufacturing
80mil Manufacturingofauxiliaryequipmentofsteamturbine
subsidiaries
(AuxiliaryMachineryCo.)
Fully-owned
Steamturbine,gassturbine,generator,gearbox,boiler,aircooler,
subsidiaryofthe
condensator, powerplantauxiliaryequipment,waterturbine,air
ExportCo.,Ltd.(TurbineCo.)
PackagedEngineering
compressor,fan,controllingequipment,spareparts,andmaterials.
Salesandassemblingoftheabove,importandexport.
HangzhouSteamTurbineHeavy
Production:rotatormachineryincludingsteamturbines,gasturbines,
IndustryCo.,Ltd.
Fully-owned
compressors,aService:technicaldeveloping
Manufacturing 36,000万元
subsidiary
and after service of steamturbines,gasturbines,
hereinafter)
Wholesaling:steel,constructionmaterials
Technicalpromotionaproduction,installation,
Subsidiaryof
Technologies DevelopmentCo.,
Manufacturing
20mil maintaining,andsellingofcompressors,steamturbinesandauxiliary
PackagedTech.Co.
(XinjiangTaifeng)
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HangzhouSteamTurbineCo.,Ltd.AnnualReport2013
Designingofcoolinganddepressurizingequ
Hangzhou Pangtong Electronic Holdingsubsidiaryof
manufacturing
(assembling only): cooling and depressurizing
EquipmentCo.,Ltd.(Pangtong
Manufacturing
ZhongnengCo.
wholesale and retailing: cooling and depressurizing
equipmentandrelatedequipment
Shijiazhuang Hangheng Steam Holdingsubsidiaryof
Shijiazhuang
Sales,technicalconsulting,service,adjusting,andmaintainingofsteam
TurbineTech ServiceCo.,Ltd.
ZhongnengCo.
turbinesandauxiliaryfacilitiesandparts
(ShijiazhuangServiceCo.)
Installation,testing,andtechnicalconsultingofsteamturbines,electric
Holdingsubsidiaryof
TurbinePowerTechServiceCo.,
1.2mil generators,salesofpartsofsteamturbine,
ZhongnengCo.
Ltd.(KunmingServiceCo.)
electricgenerator,andpowerequipment
Hangzhongneng
Sales ofsteamturbines,steammachine,generatorset,
Holdingsubsidiaryof
SteamTurbineServiceCo.,Ltd.
3mildeveloping, promotion, service of energy-saving technologies,-X
ZhongnengCo.
(WurumuqiServiceCo.)
maintaining,reconstructionofhigh-techproducts
Steam Holdingsubsidiaryof
Technicalservice,installation,andmaintasales
TurbinePowerTechServiceCo.,
ZhongnengCo.
ofsteamturbineandauxiliaryequipment,andparts
Ltd.(TangshanServiceCo.)
Steamturbineandauxiliaryequipment,spareparts,testing,repairing,
Hangzhongneng
St}