2025-04-14-深交所-杭汽轮Ｂ_2024年年度报告（英文版）_230页_3mb

Hangzhou Turbine Power Group Co., Ltd. 2024 Annual Report Summary

Core Content Overview

This report provides an overview of Hangzhou Turbine Power Group Co., Ltd. (Stock Code: 200771), a leading Chinese company in the design and manufacturing of turbo machinery equipment. The report covers key financial data, corporate governance, business operations, and industry trends for the fiscal year 2024.

Main Points and Key Information

Company Information

• Full Name (Chinese): 杭州汽轮动力集团股份有限公司
• Short Name (Chinese): 杭汽轮
• English Name: HANGZHOU TURBINE POWER GROUP CO., LTD.
• Abbreviation: HTC
• Legal Representative: Mr. Ye Zhong
• Registered Address (2024): Building 1, No.608, Kangxin Road, Linping District, Hangzhou City, Zhejiang
• Post Code: 311106
• Office Address: No.1188, Dongxin Road, Gongshu District, Hangzhou
• Post Code of Office: 310022
• Website: www.htc.cn
• Email: wg@htc.cn

Stock Information

• Stock Code: 200771
• Stock Exchange: Shenzhen Stock Exchange
• Stock Type: Hangqilun B

Shareholders and Governance

• The controlling shareholder is Hangzhou Turbine Power Group Co., Ltd., with the actual controller being the Hangzhou SASAC (State-owned Assets Supervision and Administration Commission of Hangzhou Municipal People's Government).
• In December 2020, the Hangzhou SASAC transferred 90% of its shares to Hangzhou Capital (Hangzhou State-owned Capital Investment and Operation Co., Ltd.), making it the indirect controlling shareholder.
• The company is listed on the Shenzhen Stock Exchange and has a designated information disclosure platform including Shanghai Securities News, Securities Times, Hong Kong Commercial Daily, and http://www.cninfo.com.cn.

Financial Highlights (2024)

Key Financial Notes

• The net profit after non-recurring gains and losses for the past three years was negative, indicating a period of financial strain.
• The auditor's report noted the uncertainty of the company's going concern ability.
• The company distributed a cash dividend of 2.1 yuan per 10 shares based on a total of 1,174,904,765 shares.

Business Operations and Industry Trends

Industry Overview (2024)

• Petrochemical Industry:

  • Faced challenges such as low product prices, declining efficiency, and insufficient demand.
  • Achieved operating income of 16.28 trillion yuan, a 2.1% YOY increase, but total profit fell by 8.8%.
  • Prices of major petrochemical products continued to fall, reaching historical lows, with some products like urea and polyvinyl chloride at 20-year low levels.
  • The industry is in a deep adjustment phase, with supply exceeding demand and a focus on eliminating outdated capacity to promote high-quality development.

• Power Industry:

  • Electricity consumption increased to 9.85 trillion kWh, a 6.8% YOY rise.
  • New energy generation capacity surpassed thermal power capacity for the first time, reaching 1.45 billion kilowatts.
  • Non-fossil energy accounted for ~60% of total power generation capacity by the end of 2025.
  • Coal-fired power plants will account for ~33% of total installed capacity by the end of 2025.

Company's Business Focus

• The company specializes in designing and manufacturing industrial steam turbines, gas turbines, and auxiliary equipment.
• It is a leading supplier of industrial steam turbine equipment in China.
• The operating model is client-driven, with a focus on modular design and information technology to support collaborative production and resource efficiency.
• Provides engineering services, general contracting, and operation and maintenance to clients.

Gas Turbine Business

• Collaborated with Siemens Energy on SGT-800, an advanced natural gas turbine with high efficiency, reliability, and low emissions.
• Expanded gas turbine models to include SGT-300, SGT-700, and SGT-2000E.
• Serves the metallurgical industry, using gas turbines to recycle blast furnace exhaust for power generation.
• Engages in distributed energy projects, including combined cycle power plants and waste heat recovery systems.

Corporate Governance and Compliance

• The Board of Directors and Supervisory Committee confirmed the truthfulness and completeness of the report.
• All directors attended the board meeting.
• The auditor is Grant Thornton Certified Public Accountants LLP, with Li Shilong and Zhu Zemin signing the report.
• The company did not engage a financial advisor or sponsor for ongoing supervision during the reporting period.

Non-Current Gains and Losses

• The company did not report any non-recurring gains or losses that meet the definition of exceptional profit or loss.
• Non-current asset disposal gain/loss was 2,048,611.06 yuan in 2024, mainly from asset disposals of subsidiaries.
• Government subsidies totaled 79,501,721.38 yuan, including relocation compensation and R&D subsidies.
• Reversal of impairment provisions amounted to 12,534,831.10 yuan due to receivables recovery.
• Debt restructuring gains/losses were 5,495,530.91 yuan in 2024, primarily from accounts payable restructuring.
• Other gains and losses included liquidated damages income, with a net impact of 51,983,999.18 yuan.

Conclusion

The 2024 annual report highlights the company's core operations in the turbo machinery industry, its financial performance, and the challenges faced due to market pressures and industry adjustments. Despite these challenges, the company maintained its market leadership and adapted to industry trends, particularly in the power and petrochemical sectors, while diversifying its offerings and enhancing operational efficiency through modular design and information technology. The financial results indicate modest growth and ongoing stability, though non-recurring gains and losses remain a concern.