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Quarterly Report 2018(Text)
Stock code：200771 Stock ID：Hangqilun B Announcement No.2018-70
Hangzhou Steam Turbine Co., Ltd.The Third Quarterly Report 2018(Text)
（Stock code：200771）
2017年08月
October 2018
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Quarterly Report 2018(Text)
1 Important notes
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 theQuarterly Report and we will accept individual and joint responsibilities for the truthfulness, accuracy andcompleteness of the Quarterly Report.
All of the directors presented the board meeting at which this Quarterly Report was examined.Mr. Zheng Bin, The Company Leader, Mr.Zhao Jiamao, Chief financial officer and the Mr.Jin Can, the person in
charge of the accounting department (the person in charge of the accounting )hereby confirm the authenticity andcompleteness of the financial report enclosed in the report.
II. Basic information about the company
I. Main financial data and indices
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
No
| As at the end of the reporting period | As at the end of last year | Changed （%）over end of prev. year | |||
| Gross assets（Yuan） | 11,705,467,175.92 | 10,830,597,182.38 | 8.08% | ||
| Net assets attributable to the shareholders of the listed company（Yuan） | 6,041,748,628.95 | 5,884,816,809.55 | 2.67% | ||
| Reporting period | Increase/decrease over the same period of last year（%） | Between beginning of the year to the end of the report period | Changed （%）over end of prev. year | ||
| Operating income（RMB） | 1,108,687,686.30 | 19.79% | 3,392,818,668.43 | 31.04% | |
| Net profit attributable to the shareholders of the listed company（RMB） | 163,313,243.33 | 716.66% | 291,823,837.34 | 356.02% | |
| Net profit after deducting of non-recurring gain/loss attributable to the shareholders of listed company（RMB） | 144,020,340.79 | 1,384.86% | 233,491,067.51 | 1,660.94% | |
| Cash flow generated by business operation, net（RMB） | -- | -- | 600,061,531.02 | 200.14% | |
| Basic earning per share(RMB/Share) | 0.217 | 703.70% | 0.387 | 355.29% | |
| Diluted gains per share(RMB/Share)(RMB/Share) | 0.217 | 703.70% | 0.387 | 355.29% | |
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Quarterly Report 2018(Text)
| Weighted average income/asset ratio（%） | 2.73% | 2.41% | 4.89% | 3.88% |
Items and amount of non-current gains and losses
In RMB yuan
| Non-recurring gain and loss items | Amount (Year-beginning to the end of the report period.) | Notes |
| Non-current asset disposal gain/loss(including the write-off part for which assets impairment provision is made) | -15,902.82 | |
| Govemment subsidy recognized in current gain and loss(excluding those closely related to the Company’s business and granted under the state’s policies) | 22,867,462.28 | |
| Gain/loss from debt reorganization | 6,613,000.00 | |
| In addition to normal business with the company effective hedging related business, holders of tradable financial assets, transactions and financial liabilities arising from changes in fair value gains and losses, as well as the disposal of trading of financial assets, trading financial liabilities and available-for-sale financial assets gains return on investment | 38,271,017.01 | |
| Net amount of non-operating income and expense except the aforesaid items | 1,389,571.44 | |
| Less: .Amount of influence of income tax | 9,791,306.35 | |
| Influence on minority shareholders’ equity (after tax) | 1,001,071.73 | |
| Total | 58,332,769.83 | -- |
For the Company’s non-recurring gain/loss items as defined in the Explanatory Announcement No.1 on
information disclosure for Companies Offering their Securities to the Public-Non-recurring Gains andLosses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No.1 oninformation Disclosure for Companies offering their securities to the public-non-recurring Gains and losseswhich have been defined as recurring gains and losses, it is necessary to explain the reason.None of Non-recurring gain /loss items recognized as recurring gain /loss/items as defined by the information
disclosure explanatory Announcement No.1- Non –recurring gain/loss in the report period.
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Quarterly Report 2018(Text)
II.Total Shareholders and Shares Held by Top Ten Shareholders at the End of the Reporting Period1. About Total Common Shareholders, Total Preference Shareholders with the Voting Power Recoveredand the Shares Held by Top Ten Common Shareholders
In shares
| Total number of common shareholders at the period-end | 14,284 | Total preference shareholders with the voting power recovered at the end of the reporting period(if any) | 0 | ||||||||
| Shares held by the top 10 shareholders | |||||||||||
| Shareholder name | Properties of shareholder | Share proportion % | Quantity | Amount of tradable shares with Conditional held | Pledging or freezing | ||||||
| Status of the shares | Quantity | ||||||||||
| Hangzhou Steam Turbine Power Group Co., Ltd. | State-owned legal person | 63.64% | 479,824,800 | 479,824,800 | |||||||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | Foreign legal person | 0.63% | 4,722,804 | 0 | |||||||
| Zhou Jie | Domestic Natural person | 0.53% | 3,960,000 | 0 | |||||||
| ISHARES CORE MSCI EMERGING MARKETS ETF | Foreign legal person | 0.46% | 3,493,674 | 0 | |||||||
| China Merchants Securities (HK)Co., Ltd. | State-owned legal person | 0.46% | 3,459,717 | 0 | |||||||
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | Foreign legal person | 0.46% | 3,454,046 | 0 | |||||||
| NORGES BANK | Foreign legal person | 0.37% | 2,771,277 | 0 | |||||||
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | Foreign legal person | 0.35% | 2,652,063 | 0 | |||||||
| Xia Zulin | Domestic Natural person | 0.30% | 2,280,000 | 0 | |||||||
| Wang Yihu | Domestic Natural person | 0.19% | 1,441,324 | 0 | |||||||
| To 10 holders of unconditional shares | |||||||||||
| Shareholders’ Names | Amount of shares without sales restriction | Share type | |||||||||
| Share type | Quantity | ||||||||||
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Quarterly Report 2018(Text)
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 4,722,804 | Foreign shares placed in domestic exchange | 4,722,804 |
| Zhou Jie | 3,960,000 | Foreign shares placed in domestic exchange | 3,960,000 |
| ISHARES CORE MSCI EMERGING MARKETS ETF | 3,493,674 | Foreign shares placed in domestic exchange | 3,493,674 |
| China Merchants Securities (HK)Co., Ltd. | 3,459,717 | Foreign shares placed in domestic exchange | 3,459,717 |
| VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND | 3,454,046 | Foreign shares placed in domestic exchange | 3,454,046 |
| NORGES BANK | 2,771,277 | Foreign shares placed in domestic exchange | 2,771,277 |
| GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED | 2,652,063 | Foreign shares placed in domestic exchange | 2,652,063 |
| Xia Zulin | 2,280,000 | Foreign shares placed in domestic exchange | 2,280,000 |
| Wang Yihu | 1,441,324 | Foreign shares placed in domestic exchange | 1,441,324 |
| CREDIT SUISSE AG HONG KONG BRANCH | 1,301,759 | Foreign shares placed in domestic exchange | 1,301,759 |
| Explanation on associated relationship or concerted action of the above shareholders | (1)It is unknown to the Company if there is any relationship among the top 10 common share holders without restriction. (2) Other Shareholders. is not an action-in-concert” party with any of other shareholders as described by the “Administration Rules of Informational Disclosure about Change of Shareholding Statues of PLCs”. | ||
| Note to the top 10 common stockholders involved in margin financing & securities lending (If any) | Not applicable | ||
Whether top ten common shareholders or top ten common shareholders with un-restrict shares held have abuy-back agreement dealing in reporting period.The top ten common shareholders or top ten common shareholders with un-restrict shares held of the Company
have no buy –back agreement dealing in reporting period.
2.Total number of preferred shareholders and shareholding of top 10 preferred shareholders by the end ofthe report period
Not applicable
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Quarterly Report 2018(Text)
III. Significant Events
I. Changes in the principal accounting statement items and financial indications and the causes
In RMB yuan
| Balance sheet items | Ending balance | Opening balance | Proportion of the change | Causes of change |
| Advance payments | 22,867,462.28 | 3,158,099.85 | 624.09% | Mainly due to the increase in prepayments for raw materials during the period. |
| Other receivable | 54,032,024.96 | 5,860,337.77 | 822.00% | Mainly due to the increase in dividends receivable from Hangzhou Bank pledged shares in the current period. |
| Other current assets | 22,867,462.28 | 3,158,099.85 | 624.09% | Mainly due to the increase in the purchase of Financial management products during the period. |
| Construction in process | 54,032,024.96 | 5,860,337.77 | 822.00% | Mainly due to the increase in construction investment in new plant projects and research buildings in the current period. |
| Notes payable and account payable | 22,867,462.28 | 3,158,099.85 | 624.09% | Mainly due to the payment of materials and the issuance of acceptance bills for the current period. |
| Taxes payable | 54,032,024.96 | 5,860,337.77 | 822.00% | Mainly due to the increase in income tax at the end of the period. |
| Long-term payable | 22,867,462.28 | 3,158,099.85 | 624.09% | Mainly received the second demolition compensation in the current period. |
| Income statement items | End of term | Same period of last term | Scale of change | Remarks on the change |
| Operation revenue | 3,392,818,668.43 | 2,589,226,220.63 | 31.04% | Mainly due to the realization of the company's key projects in the current period, the sales revenue increased year-on-year. |
| Taxes and surcharges payable | 33,984,172.83 | 20,922,948.45 | 62.43% | Mainly due to the year-on-year increase in VAT payable in the current period. |
| Financial expenses | -9,991,434.12 | 12,279,377.17 | -181.37% | Mainly due to the increase in interest income and net exchange income during the period. |
| Non-operation expenses | 3,264,511.69 | -1,268,990.81 | 357.25% | Mainly due to the increase in contract compensation in the current period. |
| Other gains | 22,867,462.28 | 3,158,099.85 | 624.09% | Mainly due to the state-owned value-added tax |
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Quarterly Report 2018(Text)
| relief for military products in the current period. | ||||
| Income tax expenses | 54,032,024.96 | 5,860,337.77 | 822.00% | Mainly due to the increase in profits during the period, resulting in an increase in current income tax expenses. |
| Cash flow statement Items | Amount in the reporting period | Same period of the previous year | Proportion n f the change | Causes of change |
| Cash flow generated by business operation, net | 600,061,531.02 | 199,924,781.38 | 200.14% | Mainly due to the increase in cash received from sales of goods during the period and the decrease in cash paid for the purchase of raw materials. |
| Net cash flow generated by investment | -417,696,615.32 | -60,830,933.81 | -586.65% | Mainly due to the increase in cash paid for the construction and construction projects in the current period. |
| Net increasing of cash and cash equivalents | -66,417,360.93 | -43,551,275.93 | -52.50% | Mainly due to the increase in dividends distributed during the period. |
II. Progress of Significant Events, their Influences and Analytical Notice on the Solutions1. During the reporting period, the company promoted the construction of two major projects as planned, and fullyprepared for the relocation work. As of the disclosure date, the company's steam turbine heavy-duty plant was putinto operation and the painting workshop was first relocated to the heavy factory area; the company's scientific research building has been successfully completed and is expected to be delivered at the end of the year.
2.The company signed the “ Compensation Agreement for the Relocation of Non-residential Houses onState-owned Land” with Hangzhou Xiacheng City Construction Investment Development Group Co., Ltd.
Up to now, it has received a total of RMB 306,793,224.24 for relocation compensation. The complete report isavailable as Announcement 2018-57 with Securities Times, Shanghai Securities Daily, Hong Kong CommercialDaily and at www.cninfo.com.cn dated August 7, 2018.
| Summary of important matters | Disclosure date | Temporary report disclosure of website query index |
| 3、The company received and confirmed the Hangzhou Bank's 2017 dividend income. | July 7, 2018 | Announcement on receipt of dividends from hangzhou Bank. Disclosed by http://www. cninfo.com.cn.（2018-50） |
III. Commitments finished in implementation by the Company, shareholders, actual controller, acquirer,directors, supervisors, senior executives or other related parties in the reporting period and commitmentsunfinished in implementation at the end of the reporting periodNon-existence
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Quarterly Report 2018(Text)
IV. Anticipation of Business Performance of 2018Alert of loss or significant change in net profit from the beginning of year to the end of next report period orcomparing with the same period of last year, and statement of causations.Not applicable
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Quarterly Report 2018(Text)
V. Investment in securities
In RMB yuan
| Security category | Security code | Stock Abbreviation | Initial investment cost | Mode of accounting measurement | Book value balance at the beginning of the reporting period | Changes in fair value of the this period | Cumulative fair value changes in equity | Purchase amount in the this period | Sale amount in the this period | Gain/loss of the reporting period | Book value balance at the end of the reporting period | Accounting Items | Sauce of the shares |
| Domestic and foreign stocks | 600926 | Hangzhou Bank | 390,954,040.00 | FVM | 2,239,086,521.28 | -96,069,048.81 | 1,474,843,560.28 | 0.00 | 0.00 | 0.00 | 2,126,064,110.92 | Financial assets available for sale | Self funds |
| Total | 390,954,040.00 | -- | 2,239,086,521.28 | -96,069,048.81 | 1,474,843,560.28 | 0.00 | 0.00 | 0.00 | 2,126,064,110.92 | -- | -- | ||
| Disclosure Date of Announcement on Securities investment approved by the Board of Directors | Nil | ||||||||||||
| Disclosure Date of Announcement on Securities Investment Approved by the Shareholders Meeting (If any) | Nil | ||||||||||||
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Quarterly Report 2018(Text)
VI. Entrusted financial management
Unit :Ten thousand yuan
| Type | Source | Amount | Unexpired balance | Overdue amount |
| Bank financing product | Self fund | 109,797 | 95,307 | 0 |
| Brokerage financing product | Self fund | 0 | 0 | 0 |
| Trust financing product | Self fund | 28,620 | 23,120 | 0 |
| Other | Self fund | 1,600.5 | 0 | 0 |
| Total | 140,017.5 | 118,427 | 0 | |
Specific Circumstance of Trust Investment which is Large in single amount, low insecurity, poor in liquidity
or unguaranteed in high riskNot applicableSituation with the appearance of principals which can not be recovered expectedly or other existing
situations which may lead to impairment\Not applicable
VII. Investment in derivativesNon-existenceVIII. Registration form of such Activities as Reception, Research, Communication, Interview in theReporting Period
| Reception time | Way of reception | Types of visitors | Basic index |
| July 13,2018 | Onsite investigation | Organization | Details are the relevant information disclosure （http://www.cninfo.com.cn/） |
IX. Outward Guarantee against the RegulationsNot applicable
X. Non-operational Occupancy of the Company’s Capital by the Controlling Shareholder and its Related
PartiesNon-existence
Hangzhou Steam Turbine Co., Ltd.Chairman of the Board: Zheng Bin
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Quarterly Report 2018(Text)
October 23, 2018