(600610)中毅达:2016中报净利润-0.15亿
同比下降348.73%
一、主要会计数据和财务指标报告期指标2016年中报2015年中报本年比上年增减(%)2014年中报基本每股收益（元）-0.0100-100-0.0400每股净资产（元）00.94-1000.2每股公积金(元)00.21-1000.32每股未分配利润(元)--0.2636100-1.1262每股经营现金流(元)-0.0272-100-0.0606营业收入(亿元)0.180.72-74.880.3净利润(亿元)-0.150.06-348.73-0.14净资产收益率(%)-0.0100--17.5300二、主营业务构成分析无三、前10名无限售条件股东持股情况前十大流通股东累计持有：48751.72万股，累计占流通股比：45.51%，较上期变化：132.89万股。
名称持有数量(万股)占总股本比例(%)增减情况(万股)大申集团有限公司
26609.7524.84不变西藏一乙资产管理有限公司
13863.0612.94不变西藏钱峰投资管理有限公司
4364.004.07不变上海南上海商业房地产有限公司
1029.600.96不变上海纺织发展总公司
854.000.80不变上海轻工控股(集团)公司
514.800.48不变张文军
499.820.47不变
VANGUARDTOTALINTERNATIONALSTOCKINDEXFUND369.930.35新进
INGASIAPRIVATEBANKLIMITED369.000.34新进
SCBHKA/CBBHS/AVANGUARDEMERGINGMARKETSSTOCKINDEXFUND277.760.26新进较上个报告期退出前十大股东有ING ASIA PRIVATE BANK LIMITED369.000.34退出上海嘉宝实业(集团)股份有限公司257.400.24退出DEAN FRANCIS LE BARON257.400.24退出四、分红送配方案情况
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收益宝·活期
7日年化收益率
理财宝·短期
7日年化收益率I must admit my title for this article sounds scandalous and scammy, like something a Las Vegas-based email spam company would send out. But it’s also completely accurate, because I really can teach you the best way to make money from the stock market all in one short blog post.
Some of our readers are already advanced investors.. those few people already know all of this and the article will just be preaching to the choir.
But the reason I’m still writing is that almost nobody I meet in day-to-day life knows anything about investing, the stock market, or big publicly-traded companies in general. Their opinions on the subject range throughout boredom, fear, mistrust, and if they are lucky, curiosity. Or if they are unlucky, bold confidence in their abilities to drastically “beat the market” with their intuition.
Here are three real quotes I have heard from friends over time when discussing the stock market.
“Stocks are just a big roulette wheel.. You can’t go out swimming with those sharks on Wall Street – they’ll just eat you up!”
“I don’t know what my retirement money is in.. I just checked some boxes on the sheet when I started my job, but I don’t really understand it”.
“I don’t really believe in mutual funds at all – I’m dedicated enough to do my own research and I can pick winning individual stocks.. I’ve got some Apple, some Google, some Crude Oil/Gold/Pig’s Feet/whatever…..”
All three of these approaches are understandable, but wrong. The sentiments are valid and I’m glad that people at least have an opinion, but each represents a lack of knowledge about the statistics that run the whole system. Knowing the nature of the market is the key to being able to invest huge sums of your money over time with the absolute confidence that you’re not doing anything stupid.
It’s worth gaining this confidence, because investing knowledgeably in stocks has always been the single best thing to do with your money in terms of getting lifetime income with absolutely no effort on your part.
To start with the basics – What is a stock?
It’s a slice of a company that you truly own. When you own a share, you have the right (but not obligation) to attend the shareholder’s meeting for that company, vote on important company decisions, and you have a right to a share of any future earnings that company makes. This share of earnings is called a Dividend. In some companies, especially smaller or younger ones, the company elects (with the permission of its shareholders) to reinvest the dividends to help the company grow its earnings even faster. In theory, this means you will get more dividends in the future. Thus, the real value behind any share in a company is the right to get a never-ending stream of dividends from it. For Example, the old, long-profitable company Lockheed Martin currently pays a 3.8 percent annual dividend while growing slowly, while Apple Computer, fancying itself a high growth company, pays zero percent right now and reinvests all profits for faster growth.
Why do stocks go up and down so much?
The true value of a stock is based on the amount of dividends this stock will eventually pay you, the shareholder, over time. That dividend depends entirely on how much money the company will make. But nobody actually knows in advance how much money companies will make – they just have a big host of differing opinions. Every day, millions of investors and analysts scurry around and worry about how much money each company will make in the future.
“The Libyan People are Revolting! This will make the world have a shortage of oil, so prices will go up! Oil Companies are now worth more! Buy! Buy!”.
“The US economy is slowing down! This means people will drive LESS to the shopping mall and buy less gas! Oil demand will go down and oil companies will make less! Sell! Sell!”.
It’s a neverending din like this, for every single stock, on every single stock exchange, throughout the world.
If stocks are so crazy, how can I make money off of them?
Because in the LONG run, it turns out that all this speculation and volatility always cancels out to absolutely zero. The value of stocks will go up as the earnings of the underlying companies goes up.
A portion of the ongoing earnings will always flow to the shareholders as dividends.
And all this happens because of the natural ingenuity of
hardworking humans making things at a profit, and continuing to advance our knowledge and technology and make us all more productive in every field . There may come a time when we can no longer advance, but based on the fact that we’re still driving around in gas-burning tanks and Home Depot is still doing all of its computing on green-on-black mainframe computers that kick you back to the beginning of the order if you make a typing mistake, I’d say we have at least a lifetime left to go in this department.
So, stocks go up and pay dividends over time, and they have since the beginning of modern commerce. The total return has averaged a very lumpy but fairly dependable 10 percent per year before inflation, 7 percent after inflation. 5 of the 7 percent comes in the form of rising stock prices, and the other 2 comes from dividend payments directly from the company to you. When you’re in your ‘Stashing stage, you just let these dividends automatically reinvest in more stocks which creates a nice compounding effect.
But WHICH stocks do I want to buy to make this free money?
This is the easy part. You buy ALL of them. The world’s smartest people have done incredible studies on this for over 40 years. What they find is that the best way to make money in the stock market is to simply buy an “index fund”, which is a mutual fund that automatically buys appropriate ratios of every major stock in your country’s stock market, with no magic and guessing of which stocks are better than others.
The reason the index fund wins statistically is because it can be run by a simple automated set of rules – no need to pay $350M salaries to the hotshot traders running the “Aggressive growth fund” down the street. Because there are millions of people, both smart and dumb, squabbling over the value of each stock, the Index Fund benefits and suffers from all the individual stock performances. But overall, you get the average performance of all this squabbling.
If you descend into the pit and try some squabbling yourself, you may come out ahead or drastically behind the average, but as it turns out, you can’t predict in advance which squabblers (including yourself) will win and which will lose. All you can predict is that your average performance if you buy enough of these funds will be equal to the return of the market as a whole, minus the amount of fees your mutual fund charges. So by picking the index fund with the lowest fees, you automatically win. Endless statistical analysis proves this again and again. If you don’t believe me, read the book “A Random Walk Down Wall Street, or look up the topic of John Bogle / Bogleheads / and the foundation of the Vanguard company itself.
But my uncle bought some stocks once and sold at a big profit! Also, if index funds really are the statistically best bet, why are there still thousands of brand-name mutual funds and hotshot traders out there?
For the same reason that Las Vegas still exists and people still drive SUVs. Humans are irrational creatures and it is scientifically proven that we overestimate our own investment (and gambling) abilities, and no presentation of knowledge to the affected people can completely erase this. I have some perfectly intelligent friends who still believe they are “lucky” at games of chance, even though any scientist in the world can quickly run an experiment to irrefutably disprove the existence of any form of luck. The only tool you can truly use is statistical probability, and by buying the market average and lowering your investment costs, you are improving your statistical chances.
OK, Fine. What Index fund do I want?
There is one king index fund that makes the decision easy for you. The Vanguard Total Stock Market Index Fund tracks the entire US stock market index. Its expense ratio is 0.17%. This means that for every $100,000 of shares you hold, they subtract $170 per year from their gains to pay for their offices and trading costs. Some funds charge 10-20 times higher fees. So if you are looking over employer-sponsored plans, try to find a total stock index fund (or at least its close cousin the S&P 500 index fund), and compare the expense ratio to 0.17%.
What is the S&P 500? This is a collection of shares in the 500 largest companies in the US, and therefore in most of the world. They are all multinational companies, so they benefit from growth around the world. If you really want to invest without having to worry, the S&P represents good odds. If you buy the stock market index of a smaller country, like Canada, you will still have good odds, but at higher volatility. (During the dot-com boom of the nineties, a company called Nortel once represented 70% of Canada’s entire stock market value. This company is now bankrupt, so you can imagine how that felt to investors solely in the Canadian index. Now Canada is the new Saudi Arabia with oil exports, so its index is again riding high on oil company stocks. I wouldn’t bet my whole Mustache on that one commodity either).
What about International stocks? Some people like to get fancy and buy international index funds, which can do well when the US is hurting (as it has been recently). This is fine, as long as you understand that it’s just another form of trying to outsmart the basic stock index. When you do this, you are stating that you believe the
stock markets of the other countries are more undervalued relative to future growth, than the US market is. The US is traditionally the most business-friendly country in the world, so its stock index has tended to have the highest performance, after taking into account its lower risk and volatility compared to, say, throwing all your chips onto Russia or China. It may or may not pay off in the future – I just want to point out that most people just make this decision on a whim, something like “China is so hot right now, they’re taking over the world!” . Whereas to actually justify international investing rationally you’d have to be a very sophisticated investor and truly understand WHY you are doing it.
So there you have it – in two words: , and VTSMX. In Canada, check out TD Waterhouse and their own series of funds, and let me know if you have any questions about what you find there – MMM has a Canadian Investments Expert Panel that can help us out.
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latest tweets杭汽轮B:2015年年度报告(英文版)(已取消)_杭汽轮B(200771)_公告正文
杭汽轮B:2015年年度报告(英文版)(已取消)
公告日期：
杭汽轮机股份有限公司2015年年度报告全文
HangzhouSteamTurbineCo.,Ltd.
AnnualReport2015
ReleasedonMarch19,2016
I.ImportantRemarks,TableofContents,andDefinitions
TheBoardofDirectors,TheSupervisoryCommittee,thesupervisorsandthedirectorsoftheCompanyguarantee
thattherearenosignificantomissions,fictitiousormisleadingstatementscarriedintheReportandwewillaccept
individualandjointresponsibilitiesforthetruthfulness,accuracyandcompletenessoftheReport.
ChairmanMr.ZhengBin,ChiefFinancialOfficerPuYangshuo,andtheChiefofAccountingDepartmentMs.
ZhaoJiamaoherebydeclare:theFinancialStatementinthereportisguaranteedtobetruthfulandcomplete.
Allofthedirectorsattendedtheboardmeetingonwhichthisreportwasexamined.
ThisAnnualReportcontainsprospectivedescriptions,whichdoesn’tconstitutesubstantialcommitmentto
investors.Investorsarerequestedtobeawareoftherisksattachedtotheirinvestmentdecisions.
Profitdistributionpreplan,whichwasadoptedattheboardmeeting,is:TheCompanywillnotdistributecash
dividendorbonusshares,neithercapitalizingofcommonreservesforthereportperiod.
TableofContents
I.ImportantNotice,TableofcontentsandDefinitions
II.BasicInformationoftheCompanyandFinancialindex
III.OutlineofCompanyBusiness
IV.ManagementsDiscussionandAnalysis
V.ImportantEvents
VI.ChangeofsharecapitalandshareholdingofPrincipalShareholders
VII.SituationofthePreferredShares
rmationaboutDirectors,SupervisorsandSeniorExecutives
IX.Administrativestructure
X.FinancialReport
XI.Documentsavailableforinspection
Description
Company,theCompany
Definedas HangzhouSteamTurbineCo.,Ltd.
TheGroup,HangqiGroup
Definedas HangzhouSteamTurbinePowerGroupCo.,Ltd.
thereportperiod,thecurrentperiod,thecurrent Definedas January1-December312015
HangzhouZhongnengSteamTurbinePowerCo.,Ltd.-theholding
ZhongnengCo.
Definedas subsidiaryoftheCompany
HangzhouSteamTurbineCastingCo.,Ltd.-theholdingsubsidiary
CastingCo.
Definedas oftheCompany
ZhejiangSteamTurbinePackagedTechnologyDevelopmentCo.,
PackagedTech.Co.
Definedas Ltd.-theholdingsubsidiaryoftheCompany
HangzhouSteamTurbineMachineryEquipmentCo.,Ltd.-the
MachineryCo.
Definedas holdingsubsidiaryoftheCompany
HangzhouSteamTurbineAuxiliaryMachineryCo.,Ltd.-the
AuxiliaryMachineCo.
Definedas holdingsubsidiaryoftheCompany
ZhejiangTurbineImport&ExportCo.,Ltd.-theholdingsubsidiary
TurbineCo.
Definedas oftheCompany
HangzhouSteamTurbineHeavyIndustryCo.,Ltd.-theholding
HeavyIndustryCo.
Definedas subsidiaryoftheCompany
TheBoardofDirectors
Definedas TheBoardofDirectorsofHangzhouSteamTurbineCo.,Ltd.
TheSupervisoryCommittee
Definedas TheSupervisoryCommitteeofHangzhouSteamTurbineCo.,Ltd.
TheShareholdersMeeting
Definedas TheBoardofDirectorsofHangzhouSteamTurbineCo.,Ltd.
RMB,RMB0000,RMB
Definedas RMBYuan,RMB10thousandYuan,RMB100millionYuan
Definedas Unitofpower:1000KW
Definedas Productlifecirclemanagementinformationsystem
Definedas BoilerFeedingPumpTurbine
Definedas terephthalicacid,anorganicchemicalmaterial
PromptofRisks
RisksintheCompanysbusinessoperationaredescribedintheDirectorsReportinChapterIV.
TheCompanysofficialdisclosurepresses:HongKongCommercialDaily(English),ShanghaiSecuritiesDaily
(Chinese),SecuritiesTimes(Chinese),and.cn(Chinese&English).Pleaserefertothese
mediasfortheofficialdisclosureoftheCompanyandbeawareofinvestmentrisks.
II.BasicInformationoftheCompanyandFinancialindex
I.BasicInformation
HangqilunB
StockExchangeListedin
ShenzhenStockExchange
CompanyNameinChinese
杭州汽轮机股份有限公司
ShortformofCompanyName
NameinEnglish
HANGZHOUSTEAMTURBINECO.,LTD
AbbreviationinEnglish
Legalrepresentative:
No.357ShiqiaoRd.Hangzhou
Officeaddress
No.357ShiqiaoRd.Hangzhou
WebAddress
II.Contacts
SecretaryoftheBoard
RepresentativeofStockAffairs
YuChangquan
No.357ShiqiaoRd.Hangzhou
No.357ShiqiaoRd.Hangzhou
III.Placeforinformationdisclosure
Pressmediaforinformationdisclosure
SecuritiesTimes,ShanghaiSecuritiesDaily,HongKongCommercialDaily
Webaddressfortheannualreportasassignedby
Placeforinquiryoftheannualreport
TheBoardofDirectorsOfficeofHangzhouSteamTurbineCo.,Ltd.
IV.ChangeofBusinessRegistration
Organizationcode
TheoriginalscopeofmainbusinessesoftheCompany:Thedesignand
manufacturingofsteamturbine,gasturbine,otherrotatingandto-and-fro
machineryandauxiliaryequipment,andsparepartsandcomponents,sales
ofself-manufacturedproductsandtheprovidingofrelevantafter-sales
serviceandimport&exportservice.
In July 2008, the business scope was modified to: Design and
manufacturingofsteamturbine,gasturbine,otherrotatingandto-and-fro
machineryandauxiliaryequipment,andsparepartsandcomponents,sales
ofself-manufacturedproductsandtheprovidingofrelevantafter-sales
Changeofmainbusinesalesand import&exportofpowerplant,industrialdriving,
industrialturbineequipmentandcompleteequipment.Forthoseinvolvein
quotaorlicensingshallfollowlegalprocedures.
InMarch2009,thebusinessscopewasmodifiedto:Designand
manufacturingofsteamturbine,gasturbine,otherrotatingandto-and-fro
machineryandauxiliaryequipment,andsparepartsandcomponents,sales
ofself-manufacturedproductsandtheprovidingofrelevantafter-sales
salesandimport&exportofpowerplant,industrialdriving,
industrialturbineequipmentandcompleteequipment.
Changeofholdingshareholder(ifany)
Nochangeinholdingshareholdersincelisted
V.Miscellaneousinformation
CPAhiredbytheCompany
NameoftheCPA
Pan-ChinaCertifiedPublicAccountants(Specialgeneralpartnership)
AddressoftheCPA
4-10/FXihuBusinessBuilding,128XixiRoad,Hangzhou,Zhejiang
NameofCPAsignedonthe
JiangXiaodong,ZhuGuogang
auditorsreport
ThesponsorperformingpersistantsupervisiondutiesengagedbytheCompanyinthereportingperiod.
Notapplicable
TheFinancialadvisorperformingpersistantsupervisiondutiesengagedbytheCompanyinthereportingperiod
Notapplicable
VI.SummaryofAccountingdataandFinancialindex
MaytheCompanymakeretroactiveadjustmentorrestatementoftheaccountingdataofthepreviousyearsduetochangeoftheaccountingpolicyandcorrectionof
accountingerrors.
Changedoverlastyear（％）
OperatingGrossincome（RMB）
2,600,072,151.63
3,722,331,920.13
5,064,643,686.67
Netprofitattributabletotheshareholdersofthe
-162,809,311.79
352,077,352.23
654,179,550.68
listedcompany（RMB）
Netprofitafterdeductingofnon-recurringgain/loss
attributabletotheshareholdersoflistedcompany
-196,163,971.66
322,785,643.46
617,662,580.46
Cashflowgeneratedbybusinessoperation,net
355,677,773.05
283,728,971.92
369,664,531.93
Basicearningpershare(RMB/Share)
Dilutedgainspershare(RMB/Share)(RMB/Share)
Netassetearningratio（%）
Changedoverlastyear（％）
Grossassets（RMB）
7,683,777,005.63
7,552,058,947.02
7,645,648,806.43
Netassetsattributabletoshareholdersofthelisted
4,219,337,312.80
4,450,598,244.32
4,242,074,281.15
company（RMB）
VII.Thedifferencesbetweendomesticandinternationalaccountingstandards
1．SimultaneouslypursuanttobothChineseaccountingstandardsandinternationalaccountingstandardsdisclosedinthefinancialreportsofdifferences
innetincomeandnetassets.
2.DifferencesofnetprofitandnetassetsdisclosedinfinancialreportspreparedunderoverseasandChineseaccountingstandards.
VIII.MainFinancialIndexbyQuarters
Firstquarter
Secondquarter
Thirdquarter
Fourthquarter
Operatingincome
492,164,586.38
562,831,739.86
493,672,866.88
1,051,402,958.51
Netprofitattributabletotheshareholdersofthelistedcompany
7,698,917.29
-17,981,250.61
-78,993,858.42
-73,533,120.05
Netprofitafterdeductingofnon-recurringgain/lossattributabletothe
2,401,000.86
-24,565,041.21
-88,136,672.99
-85,863,258.32
shareholdersoflistedcompany
NetCashflowgeneratedbybusinessoperation
-49,305,018.54
151,126,591.83
173,788,256.73
80,493,666.92
Notexistbetweentheabovefinancialindexortheindexwithitssumandthefinancialindexofthequarterlyreportaswellassemi-annualreportindexdisclosedby
theCompany.
IX.Itemsandamountofnon-currentgainsandlosses
Amount(2015)
Amount(2014)
Amount(2013)
Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhichassets
-441,916.66
29,279,598.21
impairmentprovisionismade)
Govemmentsubsidiesrecognizedincurrentgainandloss(excludingthoseclosely
15,752,977.27
12,268,275.22
16,517,582.75
relatedtotheCompanysbusinessandgrantedunderthestatespolicies)
Gainsandlossesfromchangeoffairvaluesofheld-for-transactionfinancialassets
andfinancialliabilitiesexceptfortheeffectivehedgebusinessrelatedtonormal
19,624,429.30
20,631,255.58
16,533,520.13
businessoftheCompany,andinvestmentincomefromdisposaloftransactional
financialassetsandliabilitiesandfinancialassetsavailableforsale
Othernon-operatingincomeandexpenditurebesidefortheaboveitems
12,164,381.63
7,401,855.41
248,232.04
Less:Influencedamountofincometax
8,553,255.35
8,283,775.86
11,084,671.48
Amountofinfluenceofminorityinterests（Aftertax）
5,191,956.32
2,808,946.46
14,977,291.43
33,354,659.87
29,291,708.77
36,516,970.22
NoneofNon-recurringgain/lossitemsrecognizedasrecurringgain/loss/itemsasdefinedbytheinformationdisclosureexplanatoryAnnouncementNo.1-Non
-recurringgain/lossinthereportperiod.
III.OutlineofCompanyBusiness
MainBusinesstheCompanyisEngagedinDuringtheReportPeriod
Thecompanyistheleadingsupplierofindustrialturbomachineryequipmentanditsserviceinthedomestic
market,mainlyengaginginthedesign,manufacturingofindustrialsteamturbineandgasturbineandsoforthof
rotatingmachinesinindustrialturbomachinery.
TheIndustrialsteamturbineuseshightemperatureandhighpressuresteamastheworkingmedium,andby
meansofoperationsofthesteamturbine,theheatenergywillconvertedintomechanicalenergytodrivevarious
kindsofindustrialequipments.Accordingtothedrivingobjects,theIndustrialsteamturbinecanbedividedinto
twocategories:industrialsteamturbinefordrivingandindustrialsteamturbineforpowergeneration.The
industrialsteamturbinefordrivingismainlyusedindrivingthecompressor,orblower,orpump,orpressing
machine,orotherrotatingmachinery,whichappliedtoindustries,suchasoilrefining,chemical,fertilizer,
buildingmaterials,metallurgy,electricpower,lightindustryandenvironmentalprotection,andtheindustrial
steamturbinefordrivingisthekeypowerequipmentforvariouskindsoflarge-scaleindustrialequipments.The
industrialsteamturbineforpowergenerationismainlyusedfordrivinggeneratorandtoprovidetheheatenergy,
whichappliedtoenterprises-ownedpowerstation,regionalheatandpowercogenerationproject,power
generationbyheatrecoveryinindustrialprocesses,urbangarbagepowerplantandgas-steamcombinedcycle
powerplantsetbyeachindustrialsector.Currently,thegasturbinemadebythecompanyismainlyappliedto
utilizingtheremainingheatoffurnacetailgasforpowergenerationinthemetallurgicalindustry.
Atpresent,thecompanyisthelargestbaseforR&DandmanufacturingofindustrialsteamturbineinChina,also
thecompanyisthemajorunitofstandard-establishmentofindustrialsteamturbinedomestically,withdomestic
marketshareremainedthelargestintheindustrialdrivingfield.Thecharacteristicsofthecompany’sbusiness
modelisproductiondeterminedbysalesprospect,andcarriesoutdesignandmanufacturingforeachprojectof
eachcustomertomaximallysatisfytheindividualdemandcomingfromthecustomer’sproject.Thecompanyhas
adopted advanced technology ofmodularizationdesigntorealizefastproductdevelopmentanddesign,
meanwhileutilizinginformationtechnologytoassociatemanufacturingresourcesforachievingflexible
production.Besides,thecompanycanprovideengineeringsolutions,generalcontractingoftheproject,product
transportationandmaintenance,remotemonitoringandotherrelevantservicesforcustomers.Thecompany’s
gas-turbinebusinessadoptedthemodelofindependentsalesandcooperativeproductionbymeansofacquiring
orders byengineeringequipmentbiddinginthenewlyestablishedorrenovationprojectsinthedomestic
large-scaledmetallurgicalindustry,inwhichtheproductdesignwasprovidedbythetechnicalcooperationparty,
andthemainpartsandcomponentsoftheproductwereorganizedbydomesticallyproducingandpurchasing,with
somecomponentpurchasedfromabroad.Thecompanyprovidestheguaranteeservicefortheproduct’soperation
inthewholelife-cycleandthatistheservicemodelforestablishinglong-termbusinessrelationshipwith
customers.
Asalargeindustrialequipmentmanufacturingenterprise,themaindrivingfactorsofthecompany'soperating
performanceareconcludedasthefollowingaspects:(1)Marketdemand.Thisdrivingfactorishighlycorrelated
withthelevelofinvestmentinfixedassetsofthedomesticindustries,suchasenergyindustry,chemicalindustry
andmetallurgyindustry.Whentheeconomygrowsrapidly,thedemandforindustrialequipmentwillbereflected
firstly.Duetotheextentofprosperityandtheinvestmentcycleofdifferentindustriesaredifferent,therelevant
marketdemandswillbepresentedindifferentundulations.Inrecentyears,alongwiththeslowdownofthe
domesticeconomicandcontinuouseconomicstructureadjustmentandstrictcontrollingofnewlyincreased
capacity,themarketdemandforindustrialturbineincreasedweakly,butthedemandforturbinesappliedtothe
energy-efficientandenvironmental-friendlyfieldkeptgrowing.(2)Technologicalinnovation.Thecompany
continuously carried out the technological innovations on product structure, keycomponent, fundamental
materialsandmanufacturingtechnique,alsothecompanyjointedwithsomedomesticprofessionalR&D
institutionsanduniversitiesandcollegesforresearchingnewtechnologiestokeepthecompany’sleadingposition
anditscompetitiveadvantageinthedomestichigh-endmarket.(3)Brandandmarketposition.Thecompany’s
productshaveagoodreputationandextensivebrandinfluenceinthedomesticmarket,butintheinternational
market,comparingwiththeinternationalwell-knownenterprises,thecompanyisfarbehind.(4)Costcontrolling
level.Asdomesticlaborcostscontinuetoriseandthepriceofindustrialproductscontinuetodecline,theproduct
profitabilityisfacingaseveretest.Inrecentyears,thecompanycontinuouslyimprovesthelevelofcosts
controllingbyimprovingtheorganizationalstructure,optimizingbusinessprocesses,enhancingthesupplychain
controlling,strengtheningriskmanagement,raisingtheefficiencyofallthestaffandsoon.
II. MajorChangesinMainAssets
1.MajorChangesinMainAssets
Mainassets
Majorchanges
Equityassets
Nomajorchanges
Fixedassets
Nomajorchanges
Intangibleassets
Nomajorchanges
Constructioninprogress
Nomajorchanges
2.MainConditionsofOverseasAssets
□Applicable√Notapplicable
III.AnalysisOncoreCompetitiveness
Asthelargestdevelopingandmanufacturingbaseofindustrialsteamturbinethroughoutthecountry,the
Companyhasbeenintheterritorywithyearsofexperiences,whichprovidedobviousadvantagesfromtechnical
researchtoproduction,frommarketingtocustomerservices.
1.Acompletetechnicalinnovationsystemwasestablished.TheCompanyhasunderitspossessionofnational,
provincial,andmunicipalgradetechnicalcenters,adoctorialworkstation,andanacademicianworkstation.Close
co-operationswerecarriedoutwithinstitutionsanduniversitiesfromthroughoutthecountry.Asthemaindrafter
ofnationalstandardonindustrialsteamturbine,theCompanyhasthenewesttechnicaltrendunderitsclose
observation.TheCompanyisnowprovidingnearly600differentmodelsofsteamturbinestothecustomersand
holdthenewesttechnicalsystemcoveringtheproductlinesupto150MW.
Secondly,thecompanyproductionmodelofmodulardesign,concurrentengineering,enabledthecompanyto
balancetheproductioncost,deliverydateandcustomerdemands.
Thirdly,theCompanyhasestablishedstrategicco-operationswithmaincustomersinthecountry.Further
marketingapproacheswerecarriedonbyinvolvingitselfinthecustomersvalue.Asoundandsteadyimagehas
beensetupinthedomesticsteamturbinemarket.Intheglobalmarket,theCompanyhasacquiredmultiple
importantcertificationsandhasestablishedaprimaryglobalrecognition.
Fourthly,theCompanyhasitscompleteserviceprovidingsystem.TheCompanyisnotonlycapabletoprovide
onsite24-hourservicefortheCompanysownproducts,butalsoaccumulatedrichexperiencesintechnical
maintenanceandreengineeringofothermanufacturersproducts.
Fifthly,theCompanyhascultivatedasignificantadvantageinhumanresources.Greatimportancehasbeen
attachedto constructionofworkteamswithcollectionofhigh-endworkforceintheareasofresearch&
development,designing,technique,testing,andqualitycontrol.Anexcellentworkforceprovidesasound
foundationtoliftqualityandservices.
IV.ManagementsDiscussionandAnalysis
Inyear2015,theeconomicsituationofChinaandothercountrieswasstillgrim.Theglobaleconomicgrowthwas
lowerthangenerallyexpected,butthegrowthofthedevelopedcountrieswaspickingup,yetwithslowrate.
However,thegrowthoftheemergingmarketsandthedevelopingcountriesincreasinglydeclined,thusthe
internationaltradingdeclinedinbothpriceandvolumeduetoaweakdemand.TheChineseeconomywasinthe
processofintensiveeconomicstructureadjustmentandthecontinuouseconomicdecliningforChinaismore
likely,whichexacerbatedthedifferentiationofeachindustry,hencetheindustriescategorizedinresourceand
heavyindustryweregenerallyfellintodifficulty.Thesteamturbineindustrywasalsoinastagnantcircumstance,
ofwhichthescaleandprofitwerefurtherdeclined.Upontheaforesaidsituation,thecompany’soperationand
productionexperiencedanunprecedentedimpact.Althoughthecompanyfulfilledallthecontractsoftheyearwith
productsfinishedintime,butduetotheinfluenceofthemarketenvironmentandpostponedclient’sproject,the
companyhadnotachievedtheanticipatedsalesgoaloftheyearinthereportingperiodandthebusiness
performancefellsharply.Forthereportperiod,theCompanyhasrealizedturnoverofRMB2,600,072,151.63,a
decreaseof30.15%;totalprofitofRMB-148,188,507.04,adecreaseof129.56%;netprofitattributabletoowners
oftheparentcompanyofRMB-162,809,311.79,adecreaseof146.24%.
2015changesinmajorfinancialstatistics
Thisreportterm
Sameperiodlastyear
Causeofchange
periodlast
Operatingincome
2,600,072,151.63
3,722,331,920.13
-30.15% Mainlyduetothefatiguedmarketofturbines,
leadingtosharpdeclininginsalesrevenue.
Mainlyduetothedecliningofoperatingrevenue
Operatingcost
1,805,941,522.77
2,363,125,652.50
andthecorrespondingdecliningofoperatingcosts,
astheintensifyingcompetition,thegrossprofitrate
declinedandtheoperatingcostsdeclinedinfewer
percentagecomparedwithdeclinedpercentageof
theoperatingrevenue
Salesexpense
156,702,806.61
158,590,899.44
-1.19% Mainly due to maintaining the market and
maintainingthesalesefforts.
Administrativeexpense
608,221,129.48
592,118,584.23
MainlyduetothecompanysR&Dexpenses
increasedcomparedwiththelastperiod.
Assetimpairmentloss
245,130,878.11
121,146,387.69
102.34% Mainlyduetoaccountsreceivablewithlongaging
rapidlyincreasedandthedifficultcollection
Cashflowgeneratedby
355,677,773.05
283,728,971.92
25.36% Mainly due to the reduced sales and the
businessoperation,net
correspondingsharpdeclineoftaxpayment
-96,009,947.10
-125,768,539.13
Mainlyduetothecompany’sinvestmenton
Netcashflowgeneratedby
WuxiXinchangCompanyandthenet
investment
financialproductstoreduceinthesame
periodoflastyear
-139,775,665.55
-406,358,256.90
Mainlyduetothedecreaseofpayingbackthebank
Netcashflowgeneratedby
loans andthe dividend comparedwiththelast
Duringthereportingperiod,whilefacingthecomplexeconomicenvironment,thecompany’smanagement
proposedtheworkingguidingprincipleof"Strictmanagement,graspingthemarket,reducingthecostsand
controllingtherisk”,andpromotedthetransformationandreformintermsoftechnology,market,operationand
managementwithactivebusinessstructureadjustment,internalresourcesintegration,processoptimizationand
restructuringandstrictoperationcostscontrollingforenhancingtheriskpreventionability,andmeanwhile
carryingforwardthenewmarketsandnewbusinesslayoutforthecompany’ssustainabledevelopment.
（1）Marketingefforts
Duringthereportingperiod,accordingtotheprofoundchangesofthemarketdemand,thecompanytimely
adjusteditsmarketstrategyandestablishedfourbusinesssectionsthataresteamturbinesection,gasturbine
section,nuclearpowersectionandservicessection.Besides,thecompanyintegratedtheresourcesofdomestic
marketandforeignmarket,stronglypromotedthecombinedsalesofdrivingunitandpowergeneratorunit,
elaboratelycultivatedthegas-turbinemarket,activelyexploredthenuclearpowerbusinessandcontrivedto
establishtheservicemarket.
Becauseoftheexcessivecapacityinindustries,suchaspetroleumindustry,chemicalindustry,coalchemical
industryandmetallurgyindustry,themarketofindustrialturbinesfordrivingiscontinuouslyaffected,in
particular,therelevantprojectsareobviouslyreducedandthemarketcompetitionisintensifying.However,by
virtueoftechnologicaladvantagesinthisfield,thecompanyobtainedthe10milliontonsrefineryprojectandthe
1.2milliontonsethyleneprojectofCNOOCHuizhou.BenefitedfromthepolicyofEnergyConservationand
EmissionReduction,thepowergenerationmarketdevelopedwellwithobviousgrowth.Inthethermoelectricfield,
thecompanyhassuccessivelycarriedoutsalespromotionsinthecentralregionandthesoutheastregion,resulted
inmajorbreakthroughofregionalmarkets.ThesetofXiamenXiangluPetrochemicalPTA50MWisthe
company’slargestpowergenerationsetutilizingtheremainingheatwithlowpressure,whichhaslaidasolid
foundationforthesubsequentlypromotionofthesamekindproject.Thecompanyhasmadebreakthroughsinthe
selectionargumentinthefieldofunitizingheatfromincinerationofwastechemicalsolidsforpowergeneration.
Inthetraditionalpowermarket,thecompanycooperatedwiththepowerplantsandtherelevantdesigninstitutes
foroptimizingthesystem,attemptingtodirectlyincorporatethebackpressureunitintotheelectricitysystemof
theplant,andthatwouldbringprominentenergy-efficiency.Besides,thecompanyhadmakebreakthroughsinthe
induceddraftfanandboilerforpowerstations,yetthetypesof660MWand1000MWturbineforfullcapacityof
feed-waterpumparefavoredbythemarket,whichwouldfurtherincreasethemarketshare.
Astothenewbusiness,thecompanyobtainedordersforfurnace-gasturbinesappliedtothemetallurgical
industrythatsituatedinthedeepadjustment,andviacontractualenergymanagementmodel,thecompanyhas
cooperatedwiththeengineeringcorporationforenhancingtheproductcompetiveness.Todealwiththepossible
majorchangesoftheenergystructureinthefutureofthecountry,thecompanyhasactivelycarriedoutthemarket
researchandpromotionworkingsforthenewgasturbineofmediumandhighheat-valuematerials,suchasgas,
COGandcoalgas,andthecompanyhascooperatedwithanumberofworldfamousenterprisesonbusiness
exploration.Inthenuclearpowermarket,thecompanywascontractedforFuqingNuclearPowerPlantandNo.5
andNo.6unitsofHongyanheNuclearPowerPlantandthenuclearpowerprojectinPakistan,yetitwasthefirst
timeforwadingintoabroad,butthatpresentedthecompanyhasworthymarketpotential.
Thecompanyhasfirmlyimplementedthe“goingabroad”strategytocontinuouslyexploretheforeignmarket.
Thecompanyhasbeencloselyfollowingthenationalstrategyof“OneBeltOneRoad”andgainedachievements
inthemarkets,suchasIndiamarket,PakistanmarketandBrazilmarket.Bylong-termfollow-up,thecompany
obtainedthesugarprojectinVietnam,andthecompanyhadbuiltbenchmarkprojectsforthelocalhigh-end
customers.Besides,thecompanyobtainedordersfromIranandithadachievedthemarketbreakthroughbysale
oftheeightythousandgradeairseparationsteamturbine.Moreover,thecompanyhadgainedgoodbusiness
performanceforfeed-waterpumpsintheforeignmarket.
（2）Technologicalinnovationtoseizetheinitiative
Duringthereportingperiod,thecompanycontinuedtoincreasetheinvestmentonresearch,andbygraspingthe
trendofdomesticandinternationalmarket,thecompanyeffectivelyintegratedthetechnologicaladvantagesand
marketresourcestomeettheneedsoftheincreasinglyupdatedproducts.Thecompanyhadset33itemsonkey
subjectresearchanddeveloped7newproductsintheyear.Thefirstsetofonehundredthousandgradeair
separationsteamturbinefordrivingdevelopedbythecompanysuccessfullypassedtheacceptance,markingthe
company'sdesignandmanufacturingcapacityofindustrialsteamturbinehasenteredintoadvancedranksinthe
world.Theaxial-exhauststeamturbinehasbeensuccessfullydevelopedanddesignedbythecompanyandithas
beenexportedtotheforeignmarket.Forhandlingtheupgradeddemandofthethermalpowermarket,the
companymateriallydevelopedaseriesofhigh-efficientthermalpowergeneratorsandthosehadbeenused.The
first backpressure steamturbineunitwithmaximumpowerof90thousandkilowattshascompletedthe
commissiontest.ThefrequencytestofK5.0twistedbladehasbeencompletedandtheshapeofT9bladethatisa
newlyhigh-efficientbladehasbeendetermined.Astotheproductstandard,thecompanyactivelypromotedthe
establishmentofEUstandardmaterialsystemforthesteamturbineandtheestablishmentofmetalmaterials
standardsystemforthegasturbineandpresidedoverindustrystandardrevisionsonthreeitems.Thereweremany
technicalbreakthroughs,includingachievements,suchasblade-in-vertical-treetypebladerootgroove,high
precisiondoubleT-typegrooveprocessing,thetechniqueoftwistedbladewithsidesteamenteringSteilinbrazing
alloysheet and3Dsimulationoftherotorprocessing,whichenhancedtheproductperformanceandthe
manufacturingquality.ThepathoftheindependentR&Dofgasturbinewasinitiallyestablishedandeverybasic
researchpertainingtoitwascarriedoutinorder.
Duringthereportingperiod,thecompany’s“ProjectonLNKseriesofindustrialsteamturbineof
efficientlyutilizinglow-qualityremainingheat"wasawardedthesecondclassprizeofscienceandtechnologyof
themachineryindustry,andthecompany’s“Theturbinefortheinduceddraftfanoftheboilerof1000MW
supercriticalthermalpowerunit”wasawardedthefirstprizeofZhejiangMachineryIndustrialScienceand
TechnologyAward.Besides,thetwoproducts,theturbineforutilizingtheleftheatorpressureofthesteamto
generatepowerandtheturbineofutilizingthesurplusheatinthepetrochemicalindustry,werenotonlythehigh
energy-conservationequipments,butwereidentifiedas“ZhejiangHigh-qualityProducts”.Thecompany’s
projectof"Developmentoftheethylenerefrigerationcompressorunitfor800thousandtons/yearethylene
equipment"passedtheappraisalconductedbythematerialsandequipmentdepartmentofSinopec.Moreover,the
company’sprojectofMillionLevelofFullCapacityWater-coolingBFPTItemobtainedthefirstsetproductof
keyfieldinequipmentmanufacturingindustryofZhejiangProvince,aswellasithasbeennamedasoneofthe
top-tenexcellentperformanceproductsbytheChinaEnergyEconomicForum.Duringtheyear,thecompany
appliedfor10inventionpatentsand18new-utility-modelpatents,andthecompanywasauthorizedwith9
inventionpatentsand16new-utility-modelpatents.
（3）Buildastrongfoundationforimprovingmanagement
Duringthereportingperiod,thecompanyimplementedsystemengineeringofenhancementonmanagementand
established25managementitemsforreducingthecosts,raisingtheeconomicperformanceandcontrollingthe
risks, alsothecompanyenhanceditsadaptabilitybyeliminatingthemanagementbottlenecksinthefields
pertainingtothemarket,technology,manufacturing,procurement,finance,andtheoperation.Thecompany
organized all its departmentstocarryoutmanagementinnovationactivitiesandtherewere43itemsof
managementinnovationsubjectscarriedout,whichsolvedanumberofdifficultproblemspertainingtothe
practicalmanagementandfurtheroptimizedandimprovedthecompany’smanagementsystem.Regardingthe
frequentchangesincontractualprojects,thecompanyestablishedanewmechanismtobridgetheproductionand
sales.Alsothecompanystrengthenedthedynamicmonitoringfortheimplementationofthecontractandstrictly
controlledtheriskofcontractexecution.Inordertofurtheroptimizethestructureofthesupplychainandthe
purchasemechanismandreasonablyallocatetheinternalandexternalmanufacturingresources,thecompanyhad
carriedoutthespecialclean-upfortheinventoryandsuspendedunits.
Duringthereportperiod,facingwithsustaininganddeepinfluencesresultedfromnewnormalofChinas
economyforindustrystructure,theCompanyactivelyorganizedspecialresearchesandassessments,mastering
thedevelopmenttrendoftheindustry,tomakeplanningsfortheenterprisetransformationinthe“Thirteenth
Five-YearPlan”.TheCompanywillcombinetherequestsofChinasindustrialmanufacturing2025,insistingon
innovation-driven and intensifying the fusion betweenindustrializationandinformatization,topromote
manufacturingfronproductiontoservice.AimingatthebroadmarketofChinasfuturenaturalgasapplication,
theCompanyconfirmedthethoroughimplementationforgasturbinebusinessduringthe“ThirteenthFive-Year
Plan”toachievejumponupgradeoftheCompanysproducttechnology.AccordingtotheCompanysresource
andcurrentcapacitysituationcombiningwiththefuturestrategicdevelopmentgoals,theCompanyputforward4
majorbusinessestocarryoutthestrategicpathof5majorprojects.Duringthereportperiod,theheavyindustryof
streamturbineandR&Dcenter,themainconstructionproductionsoftheCompany,havebeenunderconstruction
insuccession,whichhavebeengoingwellasplannedsofar.
TheCompanycontinuedtothoroughlyimplementexcellentengineering,invitingprofessionalconsulting
agenciestocarryoutstreamlinedproductionprojectdemonstration.TheCompanyobtainedthecertificationof
“MadeinZhejiang”inthemanufacturingenterpriseoftheentireprovince,whichhadbeenapprovedby
supervisionandexamination.Thequalitymanagementmodewith“ModularDesign,FlexibleManufacturingand
NimbleService”obtainedthenominationofthe2rdChinaQualityAward.TheCompanycontinuouslyaccelerated
theconstructionofinformatization.SystemdevelopmentandtestingandofPLMhasbeencompleted,andlaunch
hasbeenrealized,ofwhichthedatamanagementsystemofproductlifecyclehasbeenpreliminarilyformed.The
Companyachievedapparenteffectininformatizationforareasofbusinessintegrationofcorporatefinance,
performancemanagementofproductionprocess.TheCompanylaidemphasisonpersonneltraining,which
establishedabatchofstudiosformasterswithprovincial,municipalandcorporatelevelskills,leadingtoteam
constructionofhigh-skilledpersonnel.TheCompanystrengthenedsafetyproduction,whichhadbeenapproved
bythereexaminationoftheNationalSecond-LevelSafetyProductionStandardization
II. Mainbusinessanalysis
Refertorelevantcontentsof“1.Summarization”in“DiscussionandAnalysisofManagement”.
2.Revenueandcost
(1)ComponentofBusinessIncome
Proportion
Proportion
Totaloperatingrevenue
2,600,072,151.63
3,722,331,920.13
Boilerandpowermachine
2,135,628,506.22
3,107,064,498.45
manufacture
63,703,960.06
55,565,601.22
Petrochemicalandother
76,766,636.28
161,854,342.42
specialmachineries
323,973,049.07
397,847,478.04
OnProducts
Industrialsteamturbine
2,135,628,506.22
3,107,064,498.45
Castingproducts
63,703,960.06
55,565,601.22
Auxiliarymachinery
76,766,636.28
161,854,342.42
323,973,049.07
397,847,478.04
2,341,939,139.05
3,504,759,176.87
258,133,012.58
217,572,743.26
(2)SituationofIndustry,ProductandDistrictOccupyingtheCompanysBusinessIncomeandOperatingProfit
withProfitover10%
Increase/decreas
Increase/decreaseof Increase/decreaseof
eofgrossprofit
revenueinthesame
businesscostover
Operationcost
rateoverthe
periodofthe
thesameperiodof
sameperiodof
previousyear(%)
previousyear(%)
theprevious
OnIndustries
powermachine
2,135,628,506.22
1,553,330,173.32
manufacture
OnProducts
Industrialsteam
2,135,628,506.22
1,553,330,173.32
Undercircumstancesofadjustmentinreportingperiodforstatisticscopeofmainbusinessdata,adjustedmain
businessbasedonlatestonyearsscopeofperiod-end.
□Applicable√Notapplicable
(3)WhethertheCompanysPhysicalSalesIncomeExceededServiceIncome
Changeover
Businesscategories
sameperiodlast
Set/package
Steamturbine
Set/package
Set/package
Set/package
Gasturbine,
Set/package
compressor
Set/package
Statementonchangeofamountsforover30%YoY.
Pauseandcancellationinuserprojectsandthedelayunitsincreasedinofthisyear.Withtheadditionofthe
generallytightmarketfundandtheuserslatepayment,whichresultedinthequantityofcurrentsaleunits
decreasedandthequantityofinventoryunitsincreased.
(4)Majorordersinhand.
Notapplicable
(5)Componentofbusinesscost
Productcategory
Increase/Decrea
Proportion in the
Proportioninthe
operatingcosts(%)
Industrialsteam
1,551,730,293.95
2,008,104,121.31
52,584,471.30
44,056,440.35
Auxiliarymachinery
59,872,907.95
130,976,469.45
141,753,849.57
179,988,621.39
(6)WhetherChangesOccurredinConsolidationScopeintheReportPeriod
Newsubsidiarycompany
acquisitionEquityacquisitiontime Amount
Proportion
Zhejiang Zhongrun Turbine Technology
Estabishment
May22,2015
10,000,000.00
(7)RelevantSituationofSignificantChangesorAdjustmentoftheBusiness,ProductorServiceintheCompanys
ReportPeriod
Notapplicable
(8)SituationofMainCustomersandMainSupplier
InformationoftheCompanystop5customers
Totalsalesamounttotop5customers(RMB)
739,278,717.84
Proportionofsalestotop5customersintheannualsales(%)
InformationoftheCompanystop5customers
Amount（RMB）
Proportion
313,248,543.59
188,034,438.04
101,332,595.75
72,548,439.58
64,114,700.88
739,278,717.84
Otherexplanation:
Notapplicable
Principalsuppliers
Totalpurchaseoftop5Suppliers（RMB）
372,595,808.87
Percentageoftotalpurchaseoftop5suppliersIn
totalannualpurchase(%)
Informationaboutthetop5suppliers
Amount（RMB）
Proportion
126,685,952.21
66,923,711.92
59,578,878.10
60,423,231.79
58,984,034.85
372,595,808.87
Otherexplanation:
Notapplicable
3.Expenses
Increase/De
Saleexpenses
156,702,806.61
158,590,899.44
Administration
608,221,129.48
592,118,584.23
Mainlyduetothedeceaseofexchange
Financialexpenses
-7,563,749.45
15,255,789.99
-149.58%gainsandloaninterestpaymentcaused
bytheaccountinginforeigncurrency.
4.ResearchandDevelopment
TheCompanysR&Dinvestmentof2015was179,040,000RMB,occupying6.89%ofbusinessincome,
increased11.65%yearonyear.Duringthisyear,theCompanyreinforcedthebasicmanagementofscientific
researchtostrengthentheabilityinresearchandtacklingkeyproblems,whichmadethefirstaxialexhaustunit
succeedinbeingexportedanddelivered.Thefirstbackpressureunitwith90,000kwofmaximumpowerhad
beenthroughtestrun.100,000airseparationunitshadbeenthroughfull-loadtest,andwhichhadalsobeensent
backforoverhauling.High-pressurereheatunitandultrahigh-pressurereheatunithavebeencompleted.Withthe
supportofPLM,theCompanystrengthenedtheintellectualizeddesignandlifecyclemanagementoftheproduct,
todeeplypromotethetwo-orientedintegrationandtosimultaneouslyandorderlyacceleratethegasturbine
developmentstrategy.TheCompanyenhancedselfstrength,investedsteadily,intensifiedself-innovation,actively
metthemarketdemandsandpromotedtheproductcompetitivenesstinordertokeepfootholdsinthemarket.
Withtheexpectationthatsustaineddepressedgeneralenvironmentandthefiercecompetitionintheindustry,the
CompanywillcontinuouslyinvestinR&Dexpenditureinthefuture.
R&Dinvestmentsituation
Increase/Decrease(%
NumberofResearchandDevelopment
persons(persons)
ProportionofResearchandDevelopment
AmountofResearchandDevelopment
179,039,951.91
160,360,992.99
Investment(InRMB)
ProportionofResearchandDevelopment
InvestmentofOperationRevenue
AmountofResearchandDevelopment
InvestmentCapitalization(InRMB)
ProportionofCapitalizationResearchand
DevelopmentInvestmentofResearchand
DevelopmentInvestment
TheReasonoftheProminentChangeinTotalAmountofResearchandDevelopmentInputOccupyingthe
BusinessIncomeYearonYear
Influencedbytheoveralleconomicalsituation,thecurrentsalesdecreasedsubstantially,butinordertoimprove
theproductcompetitivenessandkeeptheleadingtechnologyadvantage,theCompanystillmaintainedthesteady
R&Dinvestment.
ExplanationoftheReasonforSubstantialChangesintheResearchandDevelopmentInputsCapitalizationRate
andItsReasonableness
Notapplicable
SituationofPatentsinthePast2Years
AccumulateAcquisitionuptothe
ReportPeriod
PatentforInvention
UtilityModel
appearancedesign
SituationofChangesoftheCoreTechnologyTeamorKey
Basicstability,aslightincrease
TechnicianofthisYear
WhetherBelongingtoHigh-techEnterpriseidentifiedbyMinistry
ofScienceandTechnology
5.CashFlow
Increase/Decrease(%)
Subtotalofcashinflowreceivedfrom
2,673,056,979.69
3,121,978,891.24
operationactivities
Subtotalofcashoutflowreceivedfrom
2,317,379,206.64
2,838,249,919.32
operationactivities
Netcashflowarisingfromoperating
355,677,773.05
283,728,971.92
activities
Subtotalofcashinflowreceivedfrom
1,794,926,065.94
1,858,871,320.48
investingactivities
Subtotalofcashoutflowforinvestment
1,890,936,013.04
1,984,639,859.61
activities
Netcashflowarisingfrominvestment
-96,009,947.10
-125,768,539.13
activities
Subtotalcashinflowreceivedfrom
212,390,000.00
551,060,000.00
financingactivities
Subtotalcashoutflowforfinancing
352,165,665.55
957,418,256.90
activities
Netcashflowarisingfromfinancing
-139,775,665.55
-406,358,256.90
activities
Netincreaseincashandcashequivalents
126,461,101.03
-248,165,082.97
Notestotheyear-on-yearchangeoftherelevantdata
Netcashflowarisingfrom
355,677,773.05
283,728,971.92
25.36% Mainlyduetothesharpdecreaseofthetaxpayment
operatingactivities
comparedwiththelastperiodasthecorresponding
salesreductioninthecurrentperiod.
Netcashflowarisingfrom
-96,009,947.10
-125,768,539.13
23.66% Mainlyduetothecompany’sinvestmenton
investmentactivities
Wuxi Xinchang
Company and the net
financialproductstoreduceinthesameperiod
oflastyear
Netcashflowarisingfrom
-139,775,665.55
-406,358,256.90
65.60% Mainlyduetothedecreaseofpayingbackthebank
financingactivities
loansandthedividendcomparedwiththelastperiod
Notestothebigdifferencebetweencashflowfromoperatingactivitiesandnetprofitinthereportingyear
LargedifferenceshaveexistedbetweenthenetcashflowgeneratedbytheCompanyscurrentbusiness
activitiesandthenetprofitofthisyear,ofwhichthereasonwasmainlycausedbytheconfirmedhugelossesin
impairmentofassetanddecreasesinreceivablesandprepaymentatthecurrentperiod,whichincreased
receivablesandprepayment.
III.AnalysisofNon-coreBusiness
Proportionintotal
Sustainable(yes
Explanationofcause
Fortheinvestmentincomeoftheholdingperiodand
Investmentincome
48,366,797.30
-32.64%financingproductoftheavailable-for-salefinancial
assets(mainlyofBankofHangzhou)
Mainlyfortheincreaseinreceivableswithlongaging,
whichresultedinincreaseinbad-debtprovisionwith
corOtherwise,fallingprice
Impairmentof
245,130,878.11
165.42%reservesresultedfromthereasonoftheterminationof
partialprojects,whereinventorycostwashigherthan
netrealizablevalue,whichresultedincorresponding
withdrawal.
Non-operating
Mainlyforthereceivedgovernmentsubsidyand
29,025,777.14
contractcompensation
Non-operating
Mainlyforthewaterconservancyconstructionfund
5,206,380.51
withwithdrawal
IV.ConditionofAssetandLiabilities
1.ConditionofAssetCausingSignificantChange
Proportion
Proportion
Proportion increase/decr Notestothesignificantchange
inthetotal
inthetotal
Monetaryfund
751,596,796.24
613,958,063.91
2,096,090,157.61
2,388,919,641.98
receivable
Inventories
1,826,869,838.60
1,594,074,228.69
Fixedassets
642,155,636.34
678,033,380.86
Constructionin
119,187,107.52
89,469,259.14
Short-term
85,350,000.00
198,600,000.00
Long-termloans
123,400,000.00
18,500,000.00
2.AssetandLiabilitiesMeasuredbyFairValue
Notapplicable
Investmentsituation
InvestmentAmountin2015(RMB)
InvestmentAmountin2014(RMB)
Changerate
11,593,515.32
28,381,036.07
2.ConditionofAcquiringSignificantShareRightInvestmentduringtheReportPeriod
Notapplicable
3.SituationoftheSignificantNon-equityInvestmentUndergoingintheReportPeriod
Notapplicable
4.InvestmentofFinancialAsset
（1）Securitiesinvestment
（2）InvestmentinDerivatives
5.Applicationoftheraisedcapital
VI.SignificantAssetandRightOffering
1.SituationofSignificantAssetSale
2.SituationofSubstantialStakeSale
Notapplicable
VII.AnalysisoftheMainShareHoldingCompaniesandShareParticipatingCompanies
SituationofMainSubsidiariesandtheJoint-stockCompanywithover10%netprofitinfluencingtotheCompany
CompanyName
Sectorsengagedin
Registeredcapital
Totalassets
Operatingprofit
Technological
developmentof
ZhejiangSteamTurbinePackaged
SubsidiarieTradeofpackadged
automaticcontrol
282,936,750.34
92,664,612.85
216,220,744.25
12,261,779.97
10,511,797.60
TechnologyDevelopmentCo.,Ltd.
andinstrument
Designingand
HangzhouZhongnengSteamTurbine
SubsidiarieManufacturing
manufacturingof
886,147,802.26
337,081,349.71
704,991,946.83
14,227,797.75
20,863,372.38
PowerCo.,Ltd.
steamturbines
HangzhouSteamTurbineCastingCo.,
SubsidiarieCasting
Ironandsteelcasting
423,235,786.63
168,816,708.11
293,407,553.21
4,821,660.73
5,944,783.76
Producingand
HangzhouSteamTurbineMachinery&
SubsidiarieManufacturing
processingofsteam
206,715,259.03
147,438,663.20
190,469,672.28
58,576,424.64
47,834,255.49
EquipmentCo.,Ltd.
turbineparts
Manufacturingof
HangzhouSteamTurbineAuxiliary
SubsidiarieManufacturing
steamturbine
512,182,577.92
239,125,321.29
393,879,695.72
37,700,609.73
33,520,334.09
MachineCo.,Ltd.
auxiliarymachines
ZhejiangTurbineImport&ExportCo.,
SubsidiarieCommerce&trade
Internationaltrade
335,728,476.00
67,014,588.22
123,134,568.86
2,848,232.09
926,872.96
Designingand
HangzhouSteamTurbineHeavyIndustrySubsidiarieManufacturing
manufacturingof
374,617,490.11
371,933,706.28
5,949,094.22
4,438,387.04
steamturbines
Particularsaboutacquiringanddisposalofsubsidiaries
NewEstabishment
Thefuturewillincreasethecompany'soperatingresults
TechnologyCo.,Ltd.
SpecialpurposevehiclecontrolledbytheCompany
Notapplicable
IX.Developmentprospect
(I)Developmentandcompetitionofthewholeindustry
DuringtheTwelfthFive-YearPlans,thewholeindustryofturbineemergedhigh-lowtrendinscalesand
quantities.Accordingtothestatisticdataoftheindustryassociation,theannualsalesincomeandoperatingprofit
ofthewholeindustryreachedthepeakin2011thenwentdownyearbyyearafterexperiencingthesustainable
growthsince2003.Inthepast2years,theindustryscalehasbeenkeepinglow,ofwhichprofitdecreased
substantially,resultinginfallingintolosssituation.AndasfortheCompany,thistrendhighlightedin2014and
Takeoutlookoftheperiodduringthe“ThirteenthFive-YearPlans”,thedevelopmentofmajortechnical
equipmentindustrywhichturbinebelongstoisalsofacingwithnewopportunitiesandchallenges.Ononehand,
theChinasgovernmentwillactivelyadaptandleadnewnormalineconomydevelopment,continuously
insistingonthegeneralkeynoteofmakingprogresswhilemaintainingstability,whichistomaketheeconomy
operationremaininreasonablerange.Moreover,“MadeinChina2025”publishedbytheStateCouncilalso
pointedoutthattheofcompetitionsituationofthepresentglobalindustryisundergoingsignificantadjustment,
whereifChinaneedstoformnewpowerineconomicgrowthandbuildnewadvantagesininternational
competition,ChinasequipmentsandChinasbrandswillbereliedoninordertorealizethetransformations
fromMadeinChinatoCreatedinChina,fromChinasSpeedtoChinasQualityandfromChinasProductto
ChinasBrand.Duringthisprocess,theenterprisewithtechnology,brandandmarketadvantagewillleadthe
transformationandupgradepace.Ontheotherhand,withtheChinesegovernmentsdeepimplementationinthe
strategyof“OneBeltAndOneRoad”,whichwillconnecttheenormousdemandsforinfrastructureandbasic
industryofdevelopingcountriesandemergingeconomiesinpurposeofofferingmassivemarketopportunitiesto
the“StrategyofGoingout”ofChinaequipmentmanufacturingindustry.
ThedownstreamindustriesrelatedtotheCompanysproductaremainlydistributedinareasofenergy
resource,chemicalindustryandpowergeneration.Duetothecommonexcesscapacityinthepresentdomestic
petrochemicalindustry,inrecentyears,thescaleofpetrochemicalindustryandincrementspeedoftheprofit
havebeensloweddown,capitalexpenditurehasbeenreduced,investedandnewly-staredprojecthavebeen
postponed,whichleadstogradualshrinkageinthedomesticmarketscale.Coal-to-oilandcoalgas,
representativesofnewchemicalcoalindustry,arethesignificant movesofpetroleumenergysubstitution
strategy.However,havingbeeninfluencedbytheslumppetroleumpriceandthetightenvironmentalprotection
policyinthepast2years,alargeamountofprojectsaremadetobepausedoneafteranother,whichturnedthe
flourishingsignificantdrivemarketintoarecessionaryone.Inthemediumandlongterm,withthenewbalance
achieved in oil supply, theoil pricewillrecoverbacktoareasonablelevel,whichwillmakealarger
developmentspacefordomesticoilandgasindustryandcoalchemicalindustry.Fortheareaofpower
generation,withthecontinuouslyoptimizingdemandsofenergystructureinthefuture,greaterchangeswilltake
placeintheindustrysituation.Accordingtothe“ActionPlanofEnergyDevelopmentStrategy()”,the
proportionofcoalconsumptionratewilldecreaseblow62%inthewholenationby2020,wherenewthermal
powerprojectwillbestrictlycontrolled.Fortheareaofthermalpower,thermoelectricitycogenerationproject
willstillbesupportedbythepolicy,possessingabettermarketprospect.DuringtheThirteenthFive-YearPlans,
theproportionofnaturalgasconsumptionwillbesubstantiallyincreased,whichwillbeincreasedtomorethan
10%proportionofprimaryenergyconsumptionby2020.Astheimportantapproachofefficientutilization,the
distributedenergyofnaturalgaswillfaceuncommonmarketdevelopmentopportunities.Speeduppromotionof
nuclearpowerconstruction.Undertheconditionofensuringsafetyandby2020,thenuclearpowerinstalled
capacitywillbeupto58,000,000kwandthecapacityunderconstructionwillbeover30,000,000kw.Withthe
promotionofoverseanuclearpowerproject,thenuclearmarketisexpectedtogetvigorousdevelopment.The
prospectoftheaboveindustriesareallbeinginfluencedbytheincrementspeedofdomesticeconomyandthe
recoveryprocessofinternationaleconomy,hence,largeruncertaintieswillexist.
Atpresent,thecompetitionhasbeensofierceintheturbineindustry.Duetotheexcessindustryproduction
capacity and sluggishmarketdemands,whichresultedinasituationwherefailedenterprisesaccelerate
transformationandupgrade,torebuildtheindustrysituation.Forthemid-to-lowequipmentmarket,the
homogenizationcompetitionissevere,whichmakesdomesticmanufacturershorriblyfightfortheprice.While
forhigh-endequipmentmarket,well-knowninternationalenterpriseswithtechnology,brandandcostadvantage
frequentlyfightforkeepingstandingonthemarket.Amongthecurrentindustrialturbineindustries,nomatter
marketoccupationrateortechnologicalreserve,theCompanyiskeepingitsleadingposition,butbeing
influencedbythecontinuedmarketdepression,constantreducingpriceandcosttendingtobeincreased,the
productprofitlevelis graduallydeclining.Tobreakthroughthedilemmatheindustryisfacingwith,the
Companymustspeedupthepaceofstrategytransformation.
(II)Developmentstrategy
Facingwiththepresentseveremarketsituationandtheopportunitiesandchallengesduringthe“Thirteenth
Five-YearPlans”,thecoreoftheCompanysfuturedevelopmentstrategyistoaccelerateenterprise
transformation,whichwillrealizeinnovationintechnologyandbusinessmodeinthemass.Forbusinessmode
innovation,extensionwillbecarriedoutduringrealizationprocessfromenterprisevaluetoclientvalue,
realizingthemanufacturingtransformationformproductiontoservice,wherewillupgradethemanufacturer
fromsingleproducttocompletedequipmentagentandsystemoperatorsoastoformtheabilityforproviding
andimplementingtotalsolution.Fortechnologymodeinnovation,theCompanywillfurtherstrengthenthe
innovation-driven and combine self-innovationwithtechnologyintroduction,simultaneouslydeveloping
industrialturbine,gasturbine,distributedenergyandnuclearpowerandmasteringthecurrentmarketdemands,
torealizesignificantbreakthroughbothintechnologyandmarketintheareaofgasturbineandnuclearpower.
Onthebasisofconsolidatingthemarketpositionofindustrialturbine,gasturbinebusinessacceleration,nuclear
powerbusinessstrengthening,serviceexpansionandengineeringbusinesswillbeformedinto4leading
businesses during theThirteenthFive-YearPlans.Meanwhile,withthesupportof5guaranteeprojects,
includingexcellentengineering,resourceintegration,processreengineering,managementimprovementand
informatization,theCompanywillbuildnewcorecompetitivenessoftheenterprise.
(III)Businessplan
Theglobaleconomicrecoveryof2016willstillbearduousandtortuous.Duringthetransformationprocess,
ChinaseconomyhammeredatthestructuralreformofDemandSide,wheretheprocessof“NoCapacity,No
InventoryandNoLever”forthetraditionalindustrywillstillbesustaining,andmorecompetitionwillbe
aggravatedintheindustry.FortheCompany,pressuresandopportunitiescoexistin2016.Accordingtothe
strategyplanningof“ThirteenthFive-YearPlans”,theCompanywilltake“ManagementDeepening,Innovation
Driven,MarketDevelopmentandRiskControlStrengthening”asthemanagerialprinciplesofthisyear,toopen
uptheroadtotransformation.Onthebasisofthepredictionofthecontractsundertaken,increasesinthe
Companysoperationrevenuewillberealized,whichisaimingforsurplusgeneratedfromprofit.
Majoroperationalmeasurementsfor2016
1.StriveforDevelopmentSpaceinMarketExploitation.In2016,theCompanywillcontinuously
strengthenandpromotedrivemarket,seekingfortheopportuniContinuetodowell
inthe2businesses,includingdriveandpowergeneration,tomakejointpromotionbetweendomestic
marActivelyexploitthemarketofpowergeneration,toincreasethemarket
occupationofbiggerthermalpowerproductandtoexpandthemarketspaceofhigh-capacitycogeneration
Carryonexploitingnewmarketfornuclearpower.Acceleratethestrategiclayoutofgasturbine,
extendingtheindustrychainofcustomerserviceforgasturbine,improvingthemarketingabilityandthe
localizationrateofcompleted-setgasturbine,toactivelyexpandthedistributedenergymarketfornatural
gas.Expeditetheimplementationforthe“StrategyofGoingout”,expandingtheoverseamarketingchannel,
openingupemerginginternationalmarket,exploringtechnologyoutputandco-productiontorealizethepath
forserviceproducttobelocalized.
2.CreateDevelopmentPowerwithTechnologyInnovation.Aimingatthemarketdemandchanges,the
Companyimprovethehigh-qualityandefficientsupplyingability.TheCompanywillcarryoutdemonstrationof
research and application for turbine containerization, to well develop
power-series turbines and
subcritical-parameterturbinesaswellasintellectualizeddeBoostthegasturbinebusiness,
putthedevelopmentstrategyofgasturbineintopracticeandenlargetechnicalcooperationandindependent
researchanddevelopment.Continuetoimplementexcellentengineering,throughlypromotetheproductquality.
Speeduptheinformatizationconstruction,launchthesecond-periodprojectofPLMandimprovetheintelligent
manufacturing.
3.ImprovetheManagementtoStrengthentheDevelopmentBase.TheCompanywillthroughly
implement the development strategy of “Thirteenth Five-Year Plans”to strengthen the analysis,
implementatio,supervisionandassessmentforstrategyaswellasboostingthemanagementreformwhichis
orientedbythestrategy.Makeafurtheroptimizationforthestructureandprocessoftheorganization,
connectingwiththedemandsofenterprisetransformation.Continuetoputexcellentperformance
managementintoeffecttopromotestreamlinedproductionmode.Furtherstrengthenthemarketabilityto
improvetheflexibilitylevelofmanufacturingsystem.Controltheoperatingcostandreducetheresource
consumption.Systematicallyboosttheriskcontrolandintensifytheriskcontrol,attachimportancetothe
riskcontrolofreceivables,inventory,commercialcontract,exchangerateandtheinternationalmarketas
wellasstrengtheningthebudgetcontrolsystemconstruction.
(IV)Financialarrangement
Toachievethebusinessobjectivesof2016,theCompanywillconstantlyenrichfinancingchannelsby
formulatingreasonablefinanceandcapitalplans,whichutilizesself-raisedfunds,debtfinancingaswellasother
variousavailablemethodstomeetthefunddemandsofself-operationdevelopmentandprojectinvestment.
1.Marketrisks
Withthedecreasingdemandsfordomesticheavyindustryinvestment,theturbinemarketdemandsindivearea
areunderweakboost，Morecompetitionanddecreasingofgrossprofitratioareexpectable,andwillbringcertain
pressuretotheCompanysmarketshareandcompetition.HowevertheCompanywilldoallitsbestinaspectsof
technicalinnovation,marketexploring,qualitylifting,serviceupgrading,andvalueadding,toneutralizethe
negativeimpactofthemarket.
2.Risksofcontractfulfilling
Withtheaggravationofmarketfluctuationsandduringtheprocessofcontractexecution,frequentchanges
inthecontracts,delayandpauseinprojectprogressoccurredoccasionally,whichbroughthugeimpactsand
influencestotheCompanysinternalproductimplementationprocess.Meanwhile,marketfluctuationsalso
increasedthecostandriskforfulfillingtheCompanyscontracts.TheCompanywillfurtherstrengthenthe
marketabilityandimprovethespeedandlevelofcorporateresponsetothemarkettocontroltheriskofcontract
execution.
（3）Accountreceivablerisks
Withdeclinesinoperationofpartialdownstreamclientsandincreasesinriskofinvestmentproject,risks
increasedcontinuouslyintheCompanysreceivables,ofwhichtheaverageagingtendstoincrease,whichwill
bringhugeimpactstotheCompanysbusinessperformance.TheCompanywillimplementcustomercredit
management,strengtheningthecontractsigningandcontrollingthefulfillmentrisktointensifytheexamination
forreceivablesandreducetheadverseeffectofoverdueaccountreceivables.
（4）Exchangeraterisks
Increasingexpandingofinternationalpurchaseandinternationalmarketingentailstheinternalpaymentsto
beinfluencedbyexchangeratefluctuations.So,exchangelosswillbesufferedtosomeextent.Astwo-way
volatilityoftheRMBexchangerateischangingsharply,profitorlossonexchangebecomesmoreuncertain.We
areattemptingtorefertothefluctuationcycleofexchangerateandtakeappropriaterisk-managementtoolstocut
downthelossmaximally.
（5）Corporateearningsdeclinerisks
Toadapttotheadjustmentandchangesonthemarketstructure,In2016,wemadeconsiderablealterationon
theproductmix.Ordersreceivedfromhigh-endmarketslikeoilandgasaredeclinedsharply,whilelow-profit
productsaresubstantiallyascending,bringingaboutadverseimpactontheoverallgrossmargin.Ontheother
hand,drasticmarketcompetitionforcesthesalespricetokeepfalling.Soitisnaturalthatthereturnonsalesis
goingdown.Facedwiththisphenomenon,moreeffortswillbepaidtoupgradeinternalmanagement,lower
operationcostandenhanceoperatingefficiency,basedonwhich,theriskofprofitabilitydownturnwillbe
mitigated.
（6）Technologyinnovationrisks
Wewillpracticethespiritof“13thfive-yearstrategy”toinvestmoreonindependenttechnologyof
researchinggasturbine.Givenpoordomestictechnology,long-rangeoftechnologydevelopment,enormous
funding,uncertaintyfromdevelopmenttoapplicationandgreaterriskoftechnology,weareplanningtoaccelerate
R&Dbuilding,intensifycooperationwithresearchinstitutionsathomeandabroad,launchstudyofnew
t