2023-03-28-深交所-杭汽轮Ｂ_2022年年度报告（英文版）_185页_3mb

Hangzhou Steam Turbine Group Co., Ltd. 2022 Annual Report Summary

Core Content Overview

The Hangzhou Steam Turbine Group Co., Ltd. (HTC, Stock Code: 200771) is a leading energy equipment manufacturer in China, primarily engaged in the design and production of rotating turbo machinery such as industrial steam turbines and gas turbines. The company also provides related services, including engineering programs, general engineering contracting, and operation and maintenance. The report covers the company's performance, governance, financial status, and strategic direction for the year 2022.

Main Financial Highlights

• Operating Revenue: RMB 5,518,841,939.82 in 2022, a decrease of 4.66% compared to 2021.
• Net Profit Attributable to Shareholders: RMB 522,396,807.32 in 2022, a decline of 19.63% from 2021.
• Net Profit After Non-recurring Gains/Losses: RMB 379,955,440.30 in 2022, a decrease of 11.25% compared to 2021.
• Cash Flow from Operations: RMB 324,140,805.63 in 2022, an increase of 351.39% compared to 2021.
• Basic Earnings Per Share: RMB 0.54 in 2022, down 20.59% from 2021.
• Net Asset Earnings Ratio: 6.47% in 2022, down 1.54% from 2021.
• Gross Assets: RMB 15,374,999,610.32 at the end of 2022, a decrease of 5.79% compared to 2021.
• Net Assets Attributable to Shareholders: RMB 8,328,481,114.19 at the end of 2022, an increase of 5.06% from 2021.

Key Financial Information

• Profit Distribution: The company distributed a cash dividend of RMB 3.0 per 10 shares, 2 bonus shares, and no conversion of reserves into share capital.
• Share Capital: Total shares at the end of 2022 were 979,537,000 after adjusting for treasury shares and share capital cancellation.
• Audit: The financial statements were audited by Pan-China Certified Public Accountants (Special general partnership), with Sheng Weiming and Lin Qunhui signing the auditors' report.
• Non-recurring Gains/Losses: The total non-recurring gains/losses for 2022 amounted to RMB 142,441,367.02. Notable items include government subsidies related to relocation, investment income from equity disposal, and changes in fair value of financial assets.

Corporate Governance and Operations

• Board of Directors and Supervisory Committee: All directors attended the board meeting, and the board and supervisory committee guarantee the accuracy and completeness of the report.
• Registered Address: Changed twice in 2021 and 2022, from Shiqiao Road to Kangxin Road in Yuhang District, then to Linping District.
• Holding Shareholder: Hangzhou Capital became the indirect controlling shareholder in December 2020 after the transfer of shares from Hangzhou SASAC.
• Main Business Changes: The company expanded its business scope to include sales and import/export of power plant and industrial equipment, as well as energy conservation and environmental protection projects.

Industry and Market Analysis

• Petrochemical Industry: Maintained stable growth with operating income of RMB 16.56 trillion in 2022, a 14.4% increase year-on-year. Total profit was RMB 1.13 trillion, a 2.8% decrease from 2021, but remained above RMB 1 trillion.
• Power Industry: Faced challenges of supply assurance and transformation, with a focus on "dual carbon" goals. Total electricity consumption reached 8.64 trillion kWh, a 3.6% increase. Installed power generation capacity was 2.56 billion kW, up 7.8% year-on-year.
• Non-fossil Energy: Accounted for nearly 50% of total installed capacity, with wind and solar power generation increasing by 16.3% and 30.8% respectively. The company is adapting to the national energy structure and industrial policy adjustments, emphasizing technological innovation and high-end product development.

Risk and Future Outlook

• Risks: The report highlights the risks associated with the company's operations, particularly in the context of the petrochemical and power industries, which are subject to macroeconomic fluctuations and policy changes.
• Prospects: The company is positioned to benefit from new opportunities arising from the introduction of national industrial policies, especially in the areas of energy conservation, carbon reduction, and the development of new chemical materials and high-end specialty chemicals.
• Going Concern: The auditor's report indicates that the company's going concern ability is uncertain, based on the lower net profit before and after non-recurring gains/losses being negative.

Summary of Key Sections

• Important Notice: The report is guaranteed to be accurate and complete by the board of directors, supervisory committee, and financial officers.
• Table of Contents: Includes sections on company information, financial data, management discussion, corporate governance, environmental responsibility, and other relevant topics.
• Changes in Registration: Includes changes in business scope and registered address over the years.
• Non-current Gains and Losses: Details various non-recurring items, such as government subsidies, investment income, and fair value changes.
• Quarterly Financial Indexes: Provides quarterly financial data, including operating revenue and net profit, showing significant fluctuations.
• Differences in Accounting Standards: No differences were found between the financial reports prepared under IAS and Chinese accounting standards for the reporting period.

Conclusion

HTC continued to focus on innovation and high-end product development in 2022, adapting to the evolving energy and industrial landscape in China. Despite a decline in net profit, the company maintained a positive cash flow from operations and is well-positioned to benefit from new policy directions in the energy sector. The report underscores the importance of corporate governance and transparency in financial reporting, while also highlighting the challenges and opportunities in the petrochemical and power industries.