Stockcode：200771 StockID：HangqilunB AnnouncementNo.2017-69 HangzhouSteamTurbineCo.,Ltd. TheThirdQuarterlyReport2017(Text) 1Importantnotes TheBoardofDirectors，theSupervisoryCommittee,thedirectors,thesupervisors,andexecutivesofthe Companyguaranteethattherearenosignificantomissions,fictitiousormisleadingstatementscarriedin theQuarterlyReportandwewillacceptindividualandjointresponsibilitiesforthetruthfulness,accuracy andcompletenessoftheQuarterlyReport. AllofthedirectorspresentedtheboardmeetingatwhichthisQuarterlyReportwasexamined. Mr.ZhengBin,TheCompanyLeader,Mr.PuYangshuo,ChieffinancialofficerandtheMr.ZhaoJiamao, thepersoninchargeoftheaccountingdepartment(thepersoninchargeoftheaccounting)herebyconfirm theauthenticityandcompletenessofthefinancialreportenclosedinthereport. II.Mainfinancialdataandchangesofshareholders （1）MainaccountingdataandfinancialIndex Whetherithasretroactiveadjustmentorre-statementonpreviousaccountingdataforaccountingpolicy changedandaccountingerrorcorrectionornot. No Asattheendofthe Changed（%）overendofprev.year Asattheendoflastyear reportingperiod Grossassets（RMB） 11,224,208,951.10 10,550,899,708.34 6.38% Netassetsattributabletotheshareholdersof thelistedcompany（RMB） 6,278,110,666.11 6,385,346,243.23 -1.68% Increase/decreaseover Betweenbeginningof Changed（%）over Reportingperiod thesameperiodoflast theyeartotheendof year（%） endofprev.year thereportperiod Operatingincome（RMB） 925,501,518.37 5.84% 2,589,226,220.63 15.50% Netprofitattributabletotheshareholdersof thelistedcompany（RMB） 19,997,776.79 168.75% 63,993,581.17 206.05% Netprofitafterdeductingofnon-recurring gain/lossattributabletotheshareholdersof 9,699,270.59 126.56% 13,259,488.98 116.58% listedcompany（RMB） Cashflowgeneratedbybusinessoperation, net（RMB） -- -- 199,924,781.38 -44.63% Basicearningpershare(RMB/Share) 0.027 169.23% 0.085 206.25% Dilutedgainsper share(RMB/Share)(RMB/Share) 0.027 169.23% 0.085 206.25% Weightedaverageincome/assetratio（%） 0.32% 1.02% 1.01% 2.45% Itemsandamountofnon-currentgainsandlosses InRMB Amount(Year-beginningtothe Non-recurringgainandlossitems Notes endofthereportperiod.) Non-currentassetdisposalgain/loss(includingthewrite-offpartforwhich assetsimpairmentprovisionismade) 2,724,203.46 Govemmentsubsidyrecognizedincurrentgainandloss(excludingthose closelyrelatedtotheCompany’sbusinessandgrantedunderthestate’s 3,158,099.85 policies) Gain/lossfromchangeoffairvalueoftransactionalfinancialassetand 52,715,774.41 liabilities,andinvestmentgainsfromdisposaloftransactionalfinancialassets andliabilitiesandsellablefinancialassetsotherthanvalidperiodvalue instrumentsrelatedtotheCompany’scommonbusinesses Othernon-businessincomeandexpendituresotherthantheabove 3,384,963.82 Less：Amountofinfluenceofincometax 10,147,425.90 Influenceonminorityshareholders’equity(aftertax) 1,101,523.45 Total 50,734,092.19-- FortheCompany’snon-recurringgain/lossitemsasdefinedintheExplanatoryAnnouncementNo.1on informationdisclosureforCompaniesOfferingtheirSecuritiestothePublic-Non-recurringGainsand Lossesanditsnon-recurringgain/lossitemsasillustratedintheExplanatoryAnnouncementNo.1on informationDisclosureforCompaniesofferingtheirsecuritiestothepublic-non-recurringGainsandlosses whichhavebeendefinedasrecurringgainsandlosses,itisnecessarytoexplainthereason. NoneofNon-recurringgain/lossitemsrecognizedasrecurringgain/loss/itemsasdefinedbytheinformation disclosureexplanatoryAnnouncementNo.1-Non�Crecurringgain/lossinthereportperiod. II.TotalShareholdersandSharesHeldbyTopTenShareholdersattheEndoftheReportingPeriod 1.AboutTotalCommonShareholders,TotalPreferenceShareholderswiththeVotingPowerRecoveredand theSharesHeldbyTopTenCommonShareholders Inshares Total preference shareholders with the Totalnumberofcommonshareholdersat 14,916 votingpowerrecoveredattheendofthe0 theperiod-end reportingperiod(ifany) Sharesheldbythetop10shareholders Pledgingor Amountof freezing Share Propertiesof tradableshares Shareholdername proportion Quantity Status shareholder withConditional Qua % ofthe held ntity shares State-owned HangzhouSteamTurbinePowerGroupCo.,Ltd. 63.64% 479,824,800 479,824,800 legalperson BBHA/CVANGUARDEMERGINGMARKETSSTOCKINDEXForeign legal 0.63% 4,722,804 0 FUND person Foreign legal NORGESBANK 0.57% 4,303,675 0 person Foreign legal VANGUARDTOTALINTERNATIONALSTOCKINDEXFUND 0.46% 3,454,046 0 person Foreign legal GUOTAIJUNANSECURITIES(HONGKONG)LIMITED 0.35% 2,670,262 0 person Foreign legal ISHARESCOREMSCIEMERGINGMARKETSETF 0.34% 2,546,600 0 person State-owned ChinaMerchantsSecutities(HK)Co.,Ltd. 0.31% 2,319,872 0 legalperson XiaZulin Domestic Naturalperson 0.28% 2,147,400 0 Foreign legal CHINAINT'LCAPITALCORPHONGKONGSECURITIESLTD 0.25% 1,905,960 0 person Foreign legal CREDITSUISSEAGHONGKONGBRANCH 0.23% 1,729,759 0 person SharesheldbytheTop10ShareholdersofNon-restrictedshares Shareholders’Names Numberofthenon-restricted Sharetype sharesheld Sharetype Quantity BBHA/CVANGUARDEMERGINGMARKETSSTOCKINDEX Foreignsharesplaced 4,722,804 4,722,804 FUND indomesticexchange Foreignsharesplaced NORGESBANK 4,303,675 4,303,675 indomesticexchange Foreignsharesplaced VANGUARDTOTALINTERNATIONALSTOCKINDEXFUND3,454,046 3,454,046 indomesticexchange Foreignsharesplaced GUOTAIJUNANSECURITIES(HONGKONG)LIMITED 2,670,262 2,670,262 indomesticexchange Foreignsharesplaced ISHARESCOREMSCIEMERGINGMARKETSETF 2,546,600 2,546,600 indomesticexchange Foreignsharesplaced ChinaMerchantsSecutities(HK)Co.,Ltd. 2,319,872 2,319,872 indomesticexchange Foreignsharesplaced XiaZulin 2,147,400 2,147,400 indomesticexchange CHINAINT'LCAPITAL CORPHONG KONGSECURITIES Foreignsharesplaced 1,905,960 1,905,960 LTD indomesticexchange Foreignsharesplaced CREDITSUISSEAGHONGKONGBRANCH 1,729,759 1,729,759 indomesticexchange Foreignsharesplaced ShenwanHongyuanSecurities(H.K)Co.,Ltd. 1,368,900 1,368,900 indomesticexchange (1）ItisunknowntotheCompanyifthereisanyrelationshipamongthetop 10commonshareholderswithoutrestriction;(2)HangzhouSteamTurbine Explanationonassociatedrelationshiporconcertedactionofthe action-in-concert”party withany of other aboveshareholders Group Co., Ltd.is notan shareholdersasdescribed bythe“AdministrationRulesofInformational DisclosureaboutChangeofShareholdingStatuesofPLCs”. Notetothetop10commonstockholdersinvolvedinmargin financing&securitieslending(Ifany) Notapplicable Whethertoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldhavea buy-backagreementdealinginreportingperiod. Thetoptencommonshareholdersortoptencommonshareholderswithun-restrictsharesheldoftheCompany havenobuy�Cbackagreementdealinginreportingperiod. 2.Totalnumberofpreferredshareholdersandshareholdingoftop10preferredshareholdersbytheendof thereportperiod Notapplicable III.SignificantEvents I.Changesintheprincipalaccountingstatementitemsandfinancialindicationsandthecauses InRMB Balancesheetitems Endingbalancein Openingbalancein Proportion Causesofchange CNY CNY ofthe change Notereceivable Mainlyduetothenotesreceivablereceivedin 631,626,005.81 479,716,321.62 31.67% thecurrentperiodincreased Advancepayments Mainly due to current advances to raw 359,433,917.88 202,184,858.83 77.77% materialsincreased Notepayable Mainlyduetoincreaseinacceptanceofcurrent 195,415,523.63 143,007,715.10 36.65% period Advancesfrom Mainlyduetothecurrentincreaseinthenew 2,396,631,380.02 1,827,959,793.62 31.11% customers contract Taxesandsurcharges Mainlyduetothereisnovalue-addedtaxatthe 18,561,605.50 90,239,673.16 -79.43% payable beginningofthisperiod Deferredincome Mainlyduetoincreaseinfinancialsubsidies 9,357,937.15 5,422,895.00 72.56% receivedinthecurrentperiod Incomestatement Endofterm Sameperiodoflast Scaleof Remarksonthechange items term change Operationincome Mainlyduetothisissuewillfurtherstrengthen 2,589,226,220.63 2,241,834,391.89 15.50% themarketdevelopment efforts,increase the numberofsalesunits Operationcost Mainlyduetothecurrent operatingincome 1,828,109,215.33 1,487,970,320.21 22.86% increased year on year, the corresponding increaseinoperatingcosts Mainlyduetotheaccountsreceivablewithlong Impairment loss on 95,749,825.99 166,025,332.68 -42.33% agingaccountsarebetterrecovered andbad assets debtsarereduced MainlyduetothecurrentsaleofLongBeach Investmentincome 106,730,672.88 21,938,936.95 386.49% sharesandreceivedtheformationofHangzhou Bankdividendincomeincreased Cashflowstatement Amountinthe Sameperiodofthe Proportion Causesofchange Items reportingperiod previousyear,CNY nfthe change Cashflow generated Mainlyduetocashpaidforthepurchaseof by business 199,924,781.38 361,060,410.70 -44.63% goodsinthecurrentperiodincreasedyearon operation,net year Net cash flow -60,830,933.81 -460,559,408.37 86.79% Mainly due to the net redemption and generated by investment income of the current financial investment productsincreasedyearonyear Netincreasingof Mainlyduetothenetcashflowfrominvesting cashandcash 89,725,778.97 -155,001,766.35 157.89% activitiesincreasedduringthecurrentperiod equivalents II.ProgressofSignificantEvents,theirInfluencesandAnalyticalNoticeontheSolutions Notapplicable III.CommitmentsfinishedinimplementationbytheCompany,shareholders,actualcontroller,acquirer, directors,supervisors,seniorexecutivesorotherrelatedpartiesinthereportingperiodandcommitments unfinishedinimplementationattheendofthereportingperiod Non-existence IV.AnticipationofBusinessPerformanceof2017 Alertoflossorsignificantchangeinnetprofitfromthebeginningofyeartotheendofnextreportperiodor comparingwiththesameperiodoflastyear,andstatementofcausations. Notapplicable V.InvestmentinsecuritiesNon-existence VI.InvestmentinderivativesNon-existence VII. Registration form of such Activities as Reception, Research, Communication, Interview in the ReportingPeriod Receptiontime Wayofreception Typesofvisitors Basicindex August31, Onsite DetailsaretherelevantinformationdisclosureIndividual 2017 investigation （http://www.cninfo.com.cn/） VIII.OutwardGuaranteeagainsttheRegulations Notapplicable IX.Non-operationalOccupancyoftheCompany’sCapitalbytheControllingShareholderanditsRelated PartiesNon-existence X.ImplementationofthesocialResponsibilityoftakingtargetedmeasurestoalleviatepovertyinlightoflocalConditions. InThereportthirdquarter,thecompanyneithercarriedouttheworkoftakingtargetedmeasurestoalleviate povertyinlightoflocalconditionsnorhassuchaplan.HangzhouSteamTurbineCo.,Ltd. ChairmanoftheBoard:ZhengBin October25,2017