Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co., Ltd.
Annual Report 202
List of ReferenceDocuments
Financial statements affixed with the signature and seal of legal representative, person incharge of accounting work and person in charge of accounting agency.Original auditors' report stamped by the accounting firm and signed and stamped with thecertied public accountants.Original copies of the documents and announcements of the Company published on thenewspaper designated by the CSRC during the reporting period.
* This Report has been prepared in Chinese and translated into English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.
$0/5&/54
Section I Denitions ...... 2
Section II Company Prole and Principal Financial Indexes ...... 3
Section III Management Discussion and Analysis ...... 7
Section IV Corporate Governance ...... 23
Section V Environmental and Social Responsibility ...... 39
Section VI Important Events ...... 47
Section VII Changes in Shares and Shareholders' Situation ...... 61
Section VIII Preference Shares ...... 67
Section IX Bonds ...... 68
Section X Financial Report ...... 71
Important Notice
I. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives of theCompany hereby guarantee the truthfulness, accuracy and completeness of the contents carried inthis annual report, guarantee no false record, serious misleading statement or great omission carriedin this annual report and guarantee to assume the legal responsibilities jointly and separately.II. All directors of the Company are present at the board meeting.III. Ernst & Young Hua Ming LLP issued a standard audit report with unqualified opinions for theCompany.IV. You Ruikai, chairman of the Company, Zhu Xiaohuai, person in charge of accounting work, andSun Guangbo, person in charge of accounting agency (accountant in charge) hereby declare that thenancial statements in this annual report are authentic, accurate and complete.V. Proposal for profit distribution or common reserves capitalizing during the reporting periodreviewed by the board of directors
As audited by Ernst & Young Hua Ming LLP, the Company achieved a net prot attributable to the owners of the parentcompany of approximately RMB 520 million in 2023. As at December 31, 2023, the undistributed profit of the parentcompany was approximately RMB 2.798 billion. Based on the Company’s performance in 2023, a profit distributionproposal for 2023 has been proposed: profits will be distributed based on the total share capital registered on therecord date for the implementation of the equity distribution, and a cash dividend of RMB 0.50 (tax included) per 10shares would be distributed to all shareholders. As of December 31, 2023, the Company’s total share capital consisted of5,268,353,501 shares. When calculated on this basis, the total cash dividend to be distributed will be RMB 263,417,675.05(tax included). The Company will not convert capital reserve into share capital, or grant bonus shares for 2023. The protdistribution proposal has yet to be submitted to the 2023 Annual General Meeting of Shareholders for consideration andapproval.VI. Risk declaration of forward-looking statements√Applicable? Not ApplicableThe forward-looking descriptions of future plans and development strategies covered in this report do not constitutesubstantial commitments by the Company to investors, and investors should be aware of the investment risks.VII. Does the Company have non-operating funds occupied by the holding shareholder and its relatedparties?
NoVIII. Does the Company provide the external guarantees in breach of the stipulated decision- makingprocedure?
NoIX. Whether more than half of the directors cannot guarantee the authenticity, accuracy andcompleteness of the annual report disclosed by the Company?NoX. Major Risk WarningThe company has described the related potential risks in this annual report. Investors may pay attention to the same.Please refer to“Management Discussion and Analysis”and related chapters for the risks the company may be confrontedwith in the future development.
XI. Others?Applicable√ Not Applicable
Important Notice
ANNUAL REPORT2023
Section I Denitions
I. Denitions
The terms used in this report shall be dened as follows, unless otherwise specied:
Company, the Company, ZPMCRefers toShanghai Zhenhua Heavy Industries Co., Ltd.CCCCRefers toChina Communications Construction Company Ltd.CCCGRefers toChina Communications Construction Group Co., Ltd.CCCG HKRefers toCCCG (HK) Holding LimitedReporting periodRefers toFrom Jan. 1, 2023 to Dec. 31, 2023
Section II Company Profile and Principal Financial IndexesSection II Company Prole and Principal Financial Indexes
I. Company InformationCompany name in Chinese??????(??)?Щ????Abbreviation of the Company name in Chinese????Company name in EnglishSHANGHAI ZHENHUA HEAVY INDUSTRIES CO.,LTD.Abbreviation of the Company name in EnglishZPMCLegal representative of the CompanyYou Ruikai
II. Contact Information
Secretary of the Board of Directors
NameSun LiAddressNo. 3261, Dongfang Road, ShanghaiTelephone021-50390727Fax021-31193316E-mailIR@ZPMC.COM
III. Basic InformationRegistered addressNo.3470, Pudong South Road, ShanghaiChanges of registered addressN/AOce addressNo. 3261, Dongfang Road, ShanghaiPostal code of oce address200125Websitehttp://www.zpmc.comE-mailIR@ZPMC.COMIV. Information disclosure and placement locationNewspaper and website for disclosure of the annual report
Shanghai Securities News, www.cnstock.comChina Securities Journal, www.cs.com.cnHong Kong Wen Wei Po, www.wenweipo.comStock exchange website for disclosure of the annual reportwww.sse.com.cnPlacement location of the annual reportOce of the board of directorsV. Stock information
Stock InformationStock typeStock exchangeStock abbreviationStock codeStock abbreviation before changeA-shareShanghai Stock Exchange (SSE)Zhenhua Heavy600320ZPMC IndustriesB-shareShanghai Stock Exchange (SSE)Zhenhua B-share900947-VI. Other relevant informationPublic accounting rm engagedby the Company (domestic)
NameErnst & Young Hua Ming LLPOce address
Room 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1 East ChanganStreet, Dongcheng District, BeijingSigned by the AccountantsGao Chong, Gu Chengli
ANNUAL REPORT2023
VII. Main accounting data and nancial indexes in recent three years(I) Main accounting data
Unit: Yuan Currency: CNYMain accounting data20232022
Year-on-year
change (%)
2021Operating revenue32,933,263,80230,191,792,9879.0825,977,976,968Net prot attributable to the shareholders of the listed company519,978,765371,937,23239.80439,839,245Net prot attributable to the shareholders of the listed companyafter deducting the non-recurring prots and losses
274,145,961414,835,324-33.91-440,186,675Net cash ows from operating activities5,184,184,4462,568,564,023101.832,119,639,518
At the end of 2023At the end of 2022
Year-on-yearchange (%)
At the end of 2021Net assets attributable to the shareholders of the listed company15,756,552,79415,168,470,1173.8814,990,218,631Total assets84,864,576,09178,213,168,7238.5078,332,081,199(II) Major nancial indexesMajor nancial indexes20232022Year-on-year change (%)2021
Basic earnings per share (RMB/share)0.100.0742.860.08Diluted earnings per share (RMB/share)0.100.0742.860.08Basic earnings per share after deducting non- recurring profits and losses(RMB/share)
0.050.07-28.57-0.09Weighted average ROE (%)3.372.39+0.982.90Weighted average ROE after deducting non-recurring prots and losses (%)1.742.68-0.94-3.48Explanations about the main accounting data and financial indexes in the past 3 years as at the end of the reportingperiod√Applicable? Not ApplicableThe change in net prot attributable to the shareholders of the listed company was mainly due to the increase in protresulting from the increase in project delivery of the Company.The change in net prot attributable to the shareholders of the listed company after deducting the non-recurring protsand losses was mainly due to the increase in the Company’s provision for inventory depreciation.The change in the net cash flows from operating activities was mainly due to the increase in cash received from theCompany’s sale of goods and provision of services.The change in the basic earnings per share was mainly due to the increase in the Company’s prots.The change in the diluted earnings per share was mainly due to the increase in the Company’s prots.
VIII. Dierences in accounting data under domestic and overseas accounting standards
(I) Dierence in net prots and net assets attributable to the shareholders of the listed company in thenancial statements synchronously disclosed under international and China’s accounting standards
?Applicable√ Not Applicable
(II) Dierence in net prots and net assets attributable to the shareholders of the listed company in thenancial statements synchronously disclosed under foreign and China’s accounting standards?Applicable√ Not Applicable
Section II Company Profile and Principal Financial Indexes
(III) Explanation for dierences between the domestic and foreign accounting standards:
?Applicable√ Not Applicable
IX. Main nancial data in 2023 by quarter
Unit: Yuan Currency: CNY
Q1(Jan. to Mar.)
Q2(Apr. to Jun.)
Q3(Jul. to Sep.)
Q4(Oct. to Dec.)Operating revenue6,019,689,2277,389,118,3959,102,390,09310,422,066,087Net prot attributable to the shareholders of the listed company129,537,269150,348,73539,740,347200,352,414Net prot attributable to the shareholders of the listed companyafter deducting the non-recurring prots and losses
28,768,09241,855,152120,014,92483,507,793Net cash ows from operating activities-923,639,2812,316,977,981-219,191,5694,010,037,315Explanations about the dierences between the quarterly data and the data in periodically disclosed reports?Applicable√ Not ApplicableX. Non-recurring prot and loss items and amount√Applicable? Not Applicable
Unit: Yuan Currency: CNYNon-recurring prot and loss itemsAmount in 2023
Note(if applicable)
Amount in 2022Amount in 2021Prot or loss from disposal of non-current assets, including the write-o portion of the provision of asset impairment
79,038,662?66,091,456240,161,569Government subsidies included in current prots and losses exceptfor government subsidies closely related to the normal operations ofthe Company, in line with national policies, and obtained accordingto determined standards, with a lasting impact on the Company’sprots and losses
107,480,822?106,415,94781,153,206Profit or loss from changes in fair value of financial assets andnancial liabilities held by non-nancial enterprises and from disposalof nancial assets and nancial liabilities, except for eective hedgingoperations associated with the Company’s normal operations
94,482,602?-214,877,284643,903,925Reversal of provision for impairment of receivables subject toseparate impairment test
?94,986,600Other non-operating revenue and expenses except for the above-mentioned items
19,796,255?27,301,76912,089,008Other profit or loss items that conform to the definition of non-recurring prot or loss
?Less: Aected amount of income tax45,161,118?11,561,380179,212,457Aected amount of minority equity (after tax)9,804,419?16,268,60013,055,931Total245,832,804?-42,898,092880,025,920
Explanations should be provided to the items not listed in the“Explanatory Announcement on Information Disclosure ofCompanies Oering Securities to the Public No. 1 - Non-recurring Prot or Loss”, but identied as non-recurring prot orloss items with signicant amount by the Company, and the non-recurring prot or loss items listed in the“ExplanatoryAnnouncement on Information Disclosure of Companies Oering Securities to the Public No. 1 - Non-recurring Prot orLoss”, but dened as recurring prot or loss items by the Company.?Applicable√ Not Applicable
ANNUAL REPORT2023
XI. Items measured at fair value
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022December 31, 2023Current change
Impact on current
protsJiangxi Huawu Brake Co., Ltd.199,652,466168,181,696-31,470,770-8,980,321Qingdao Port International Co., Ltd.348,072,750248,085,844-99,986,90679,238,655China Railway Signal & Communication Corporation Limited 280,317,612 281,346,3321,028,72021,779,691Shenwan Hongyuan Group Co., Ltd.870,1160-870,116162,966COSCO Shipping Holdings Co., Ltd.40,132,12014,542,525-25,589,5952,959,460Equity instrument investment8,438,2788,438,27800Hunan Fengri Power & Electric Co., Ltd.30,657,86229,951,235-706,627335,790CCCC Highway Bridges National Engineering Research CentreCo., Ltd.
22,151,67024,986,9992,835,3290CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
8,938,17010,440,4951,502,3250Shenyang Weichen Crane Equipment Co., Ltd.5,205,3006,617,6531,412,3530Ningbo Weilong Port Machinery Co., Ltd.5,825,19515,333,1779,507,9820Shanghai Longchang Lifting Equipment Co., Ltd.697,422739,81542,3930Jiangsu Zhangjinggao Bridge Co., Ltd.016,790,00016,790,0000Total950,958,961825,454,049-125,504,91295,496,241XII. Others?Applicable√ Not Applicable
Section III Management Discussion and Analysis
Section III Management Discussion and Analysis
I. Discussion and analysis of the performanceIn 2023, the Company thoroughly studied and implemented the spirit of the 20th National Congress of the CommunistParty of China and General Secretary Xi Jinping’s important instructions on state-owned central enterprises,conscientiously implemented the decisions, arrangements and work requirements of the Party Central Committee,the State Council and the State-owned Assets Supervision and Administration Commission, earnestly fulfilled therequirements under the Company Law, the Articles of Association of the Company, relevant laws, regulations andnormative documents, and fully adopted the“1544”overall development strategy. Focusing on the high-qualitydevelopment as main task, the Company upheld the underlying principle of pursuing progress while ensuring stability,steadily increased main business indicators, and made solid progress in promoting the high-quality development.During the reporting period, the Company achieved operating revenue of approximately RMB 32.933 billion, representinga year-on-year increase of 9.08%; the net prot attributable to the parent company was approximately RMB 0.52 billion,representing a year-on-year increase of 39.80%. The new contract value of port machinery business was USD 3.608 billion,an increase of 6.59% over the same period last year. New contract value of marine engineering and steel structure-relatedbusinesses amounted to USD 1.984 billion, of which the new orders for steel structure business amounted to USD 0.47billion.The Company's market development has continued to advance. Rapid and steady progress was made in the portmachinery business; steady development was seen in the offshore engineering business, a breakthrough was madein the development of steel structure business, and fruitful results were reported in the development of its diversiedbusinesses. Relying on the fundamental support from internal resources and expansion through external resources,the Company eectively increased its production capacity, intensied its eorts to implement the production plan andguarantee the material supply, and improved its performance of project contracts. With sound and steady progressin the operational quality and efficiency, the Company reported impressive results in reducing costs and increasingeciency by open bidding, revitalizing existing assets, strengthening supplier sourcing and development and processcontrol, and optimizing financial and capital management. The innovative intelligent manufacturing was steadilyadvanced, and 297 new patents were granted throughout the year. The Company led and participated in the formulationof 5 international standards, deployed the research and development of 38 core technologies, devices and software,and increased innovation incentives, accelerated the automated and intelligent transformation of production lines,contributing to continuous improvement of its core competitiveness. Furthermore, the Company continued to beef upits risk management, optimized the risk management system, and launched the“Year of Strengthening ComplianceManagement” campaign to further cement the foundation for its stable development.II. Industrial situation of the Company during the reporting periodThe year 2023 witnessed complex global political and economic landscape and uncertain international environmentdue to impact from geopolitics and other factors. As an export-oriented enterprise, the Company was still confrontedwith the challenges in terms of supply chain security and stability and local development. China has entered a new stageof comprehensively building a modern socialist country and marching towards the second centenary goal. The basictrend of the national economy to recover and improve in the long run remains unchanged. The Party Central Committeerelies on the new development philosophy, new development pattern and new development goals to guide overallarrangements, and strives to build a great country and advance national rejuvenation on all fronts through Chinesemodernization. A new round of scientic and technological revolution and industrial transformation creates favorableconditions for the Company to better integrate into global development and make full use of international and domesticmarkets and resources.
ANNUAL REPORT2023
From the conditions of the industry where the Company operates, the manufacturing industry was accelerating itstransformation towards high-end, intelligent and green development. In terms of port machinery business, the automatedand intelligent upgrade of global ports brought new opportunities for port upgrading. However, the accelerated groupintegration of Chinese ports and the contest with other Chinese port machinery manufacturers led to increasingly ercecompetition and imposed higher requirements for cost and innovation. Mobile machinery products enjoy a huge marketspace, featuring a high degree of standardization. In terms of oshore engineering business, the traditional oil and gasoffshore engineering market is gradually recovering, and international oil prices will remain high in the medium andlong term, beneting the oshore equipment market. In terms of steel structure business, as the nationwide eorts tobuild green transportation infrastructure are intensied and Chinese urbanization is accelerating, the market demand forsteel-structured bridges has increased, but the Chinese market shows a trend of low-price competition. In terms of newindustries, a series of sectors where the Company operates have good market prospects, such as prefabricated buildings,photovoltaic power generation, elevator installation, and mechanical and electrical engineering.III. Business of the Company during the reporting periodThe Company is a well-known heavy equipment manufacturer and a state-owned company listed on A and B shares,and its holding company is China Communications Construction Group Co., Ltd., which is listed in Fortune Global 500.Headquartered in Shanghai, with several production bases in Shanghai and Jiangsu and several overseas branchesworldwide, the Company has more than twenty 60,000t to 100,000t complete transport vessels which can transportcomplete large products to the world. At present, the products of the Company have been successfully sold to 107countries and regions in the world.The Company upheld the goal of building a world rst-class equipment manufacturer with global competitiveness intechnology, management and quality, focused on steady growth, project performance, cost reduction and efficiencyincrease, reform and innovation, risk prevention and control and other key work, continued to consolidate the traditionalcore business such as port machinery, oshore engineering, shipping, etc., continued to accelerate the development of“large and heavy”steel structure, oshore wind power, smart parking and other growth-oriented business, multipliesdevelopment and innovation and post-market service business, moderately developed investment and nancial business,and strived to explore new business.During the reporting period, rapid and steady progress was made in the port machinery business. The market share ofquay cranes was 70%, maintaining No.1 in the world for 26 consecutive years. The Company signed the NEOM TerminalPort Machinery Project in Saudi Arabia with the largest single contract value across the year. The pure electric straddlecarriers entered the Maersk market for the first time, and the hybrid straddle carriers successfully broke into the DPWorld’s European market.Steady development was seen in the oshore engineering business. The Company developed the market for design andmanufacturing of oshore equipment, core accessories and upgrading services, successfully signed the rst contract forrotary pile-driving barge project in China and several high-specication oating cranes, successfully entered the gantrycrane market in the nuclear power eld, and undertook the construction of the rst 1,600-ton gantry crane project fornuclear power systems in China.A breakthrough was made in the development of steel structure business. Following the Hong Kong-Zhuhai-MacaoBridge, Xiamen Xiang’an Bridge, China’s second and Fujian Province’s rst fully prefabricated cross-sea bridge, which wasconstructed by the Company, was fully opened to trac and won the“Gold Award of China Steel Structure”; the steelstructure of the main bridge of the West Gate Tunnel in Australia was completed and shipped; and the Cocody Bridge inC?te d’Ivoire, West Africa, an achievement of the joint construction of the“Belt and Road”initiative, was opened to trac.The Company gained a growing inuence in the steel bridge industry, with its market position further consolidated.Fruitful results were reported in the development of diversied businesses. The Company successfully lifted the upperblock of Yuedian Qingzhou Offshore Booster Station, the world’s largest AC booster station with the highest voltagelevel, consolidating its leading position in China’s oshore wind farm and shipyard lifting market. Focusing on its primaryresponsibilities and primary business, it actively studied and made an arrangement for the port automated storage andretrieval system (AS/RS) market, and delivered the rst AS/RS for commercial vehicles in China. the Company successfully
Section III Management Discussion and Analysisdeveloped an industry-leading container truck parking garage, and steadily expanded its urban parking business. TheCCCC’s parking equipment for Liangjiang New Area Chongqing Liangjiang passed the acceptance.IV. Analysis of the core competitiveness during the reporting period√Applicable? Not Applicable
1. Leading market position
The Company had independently developed new products and technologies such as the world's first double 40-footcontainer shore bridge, full-auto double-trolley shore bridge and two-way anti-swing system, which had promotedthe technical upgrade of the automated container terminals in the world and become the global trendsetter of portmachinery development. The Company had successfully built China's rst automated terminal --- Xiamen Ocean GateAutomated Terminal of COSCO, Asia's rst full-auto terminal ---Qingdao Port Full-auto Terminal, and the world's largestsingle-berth full-auto terminal - Yangshan Full-auto Terminal (Phase IV) of Shanghai Port. The automated terminalequipment and systems provided by the Company had been popularized in nearly 60 automated terminal projects athome and abroad, accounting for more than 70% of automated terminals worldwide. The Company manufactured theworld’s largest full-revolving crane vessel, namely“Zhenhua 30” Vessel, helping the construction of Hong Kong-Zhuhai-Macao Bridge. The Company also fabricated all of the steel structure for San Francisco-Oakland Bay Bridge, which wasregarded as a highly dicult project by the bridge industry in the world.
2. Leading R&D and innovation capability
As one of the first innovative enterprises in China and one of the first national technology innovation demonstrationenterprises, the Company has a national enterprise technology center, a national engineering research center of coreequipment for offshore lifting and pipe-laying, a national postdoctoral research center, a provincial and ministerialacademician and expert workstation, a provincial and ministerial key laboratory and a provincial and ministerialengineering research and development center. As of the end of 2023, the Company had applied for a total of 3,925patents, with 2,169 valid patents and 61 international authorizations. The Company insisted on the combinationof independent R&D and industry-university-research, established long-term cooperative R&D relationships withprofessional research institutions and customers, formed a R&D and innovation platform system to support the high-quality development of the enterprise, and built the strategic force for scientific and technological innovation. Bycombining value creation and data-driven approach, it promoted digital construction and intelligent transformationand upgrading, established four major digital development areas: operation management, design and R&D, productionand manufacturing, operation and maintenance services, and created an integrated collaborative platform for design,process and manufacturing with automated equipment and digital operation management as the core, to promote the“upgrading” of industrial development.Holding onto the development direction of“high-end, intelligent and green”equipment manufacturing, the Companycontinuously introduced new technologies, new products and new services leading the industry development. With amastery of the core technologies of large-scale, ecient, green and low-carbon port machinery, the Company launchednew models such as full-truss beam quay cranes and all-electric tire cranes, and built a diversied product matrix. Witha mastery of the core technology of the terminal production control system, the Company also pioneered the TerminalOperating System (TOS) integrated with the Equipment Control System (ECS), comprehensively enhancing its systemintegration capabilities. A new green stand-alone product was released, and the Model S ASC high-speed automatedrail-mounted gantry crane was designed to be ultra light-weight. The Company achieved internationally leading resultsin intelligent sensing trackless navigation technology, and globally pioneered the development of unmanned straddlecarrier, automatic guided vehicle and other products and technologies integrating positioning function, thereby makingports more intelligent.“Tiankun”manufactured by the Company made a breakthrough in the core technology of thelarge-sized self-propelled cutter suction dredger, making China’s design and construction technology of the dredgerrank the forefront in the world. The“Independent Research and Development and Industrialization of Large OffshoreCutter Suction Dredging Equipment”won the Grand Prize of the National Award for Science and Technology Progress, the“Research and Application of Key Technologies for the New Generation Port Container Crane”won the First Prize of theNational Award for Science and Technology Progress, the“Key Technologies and Applications of Full-Swing Floating Crane
ANNUAL REPORT2023for Oshore Heavy Lifting Equipment” won the Second Prize of the National Award for Science and Technology Progress.
3. Global marketing network and digital supply chain platform
The Company gives full play to its advantages in relevant regions at home and abroad, attracting many customers athome and abroad with quality products and services. The Company has constantly strengthened the global networklayout of overseas branches and has established several overseas branches in the world, established good partnershipand solid cooperation foundation with local internationally renowned enterprises and upstream and downstreamenterprises of the industry, and continuously exerted its localization advantages. Based on its global operation andservice network, the Company has provided integrated and lean operation and lifecycle service for global customers ina fast, accurate and comprehensive way. The Company has a service team composed of more than 1,000 high-qualityprofessionals on the site all over the world, which can provide ecient solutions and perfect spare parts service supportand supply goods to the world in the shortest time. Terminexus, a wholly-owned subsidiary of the Company, has built therst digital supply chain platform in port machinery industry.
V. Performance during the reporting periodDuring the reporting period, the Company’s operating revenue was steadily rising and its protability of primary businessimproved significantly. The Company realized operating revenue of approximately RMB 32.933 billion, representing ayear-on-year increase of 9.08%; the net prot attributable to the parent company was approximately RMB 0.52 billion,representing a year-on-year increase of 39.80%; the basic earnings per share was RMB 0.10, representing a year-on-yearincrease of 42.86%.
(I) Analysis of the performance
1. Analysis table of changes in the related items in prot statement and cash ow statement
Unit: Yuan Currency: CNY
ItemAmount in the current periodAmount in the same period of the last yearChange (%)
Operating revenue32,933,263,80230,191,792,9879.08Operating cost28,480,385,79426,145,431,9868.93Selling and distribution expenses211,361,193176,805,66419.54General and administrative expenses849,183,436835,690,1681.61Financial expenses546,050,450775,079,877-29.55Research and development expenditures1,311,556,6651,118,337,09117.28Net cash ows from operating activities5,184,184,4462,568,564,023101.83Net cash ows from investing activities-181,631,626-83,719,029N/ANet cash ows from nancing activities-2,391,719,903-4,723,159,537N/ATaxes and surcharges291,299,625174,759,45766.69Investment income67,909,400204,359,358-66.77Income from fair value change-27,339,814-276,050,580N/AAssets impairment losses-428,844,200-92,510,638N/A
The change in operating revenue was mainly due to the increase in project delivery of the Company.The change in operating cost was mainly due to the increase in operating cost as a result of the increase in operatingrevenue.The change in selling and distribution expenses was mainly due to the Company’s increased eorts in market expansionand marketing.The change in general and administrative expenses was mainly due to the increase in corporate consulting fees.The change in nancial expenses was mainly due to lower interest expenses resulting from the decrease in the interest-bearing liabilities of the Company and the increase in exchange gains from fluctuations in the exchange rate of RMBagainst USD.
Section III Management Discussion and AnalysisThe change in research and development expenditures was mainly due to the increase in the expensed expenditures forresearch and development projects of the Company.The change in the net cash flows from operating activities was mainly due to the increase in cash received from theCompany’s sale of goods and provision of services.The change in net cash ows from investing activities was mainly due to the increase in cash paid by the Company for thepurchase and construction of xed assets.The change in net cash ows from nancing activities was mainly due to the repayment of loans by the Company.The change in taxes and surcharges was mainly due to the increase in the amount of provision for urban construction taxand additional tax resulting from the increase in the VAT amount beneting from the sound business development of theCompany.The change in investment income was mainly due to the decrease in the income from investment into associatedenterprises and joint ventures and the decrease in dividends from the stocks held this year.The change in the gains from fair value change was mainly due to a lower decline in the fair value of the stocks held bythe Company.The change in assets impairment loss was mainly due to the increase in the Company’s provision for inventorydepreciation.Detailed description of major changes in business type, profit composition or profit sources of the Company in thecurrent period?Applicable√ Not Applicable
2. Analysis of revenue and cost
√Applicable? Not ApplicableThe Company realized operating revenue of approximately RMB 32.933 billion, representing a year-on-year increase of
9.08%; the operating cost was RMB 28.48 billion, representing a year-on-year increase of 8.93%.
(1). Main business by sector, product, region and sales model
Unit: Yuan Currency: CNY
Main business by productProduct
Operatingrevenue
Operating cost
Gross protrate (%)
Year-on- yearchange in operatingrevenue (%)
Year-on-year
change inoperating cost (%)
Year-on-yearchange in gross
prot rate (%)
Port machinery21,236,864,18217,769,268,79816.332.442.07+0.3Heavy-duty equipment5,422,715,0545,139,018,0335.2375.7580.21-2.35Engineering construction projects1,528,578,2181,551,493,106-1.50-5.29-4.12-1.24Steel structure and related income3,166,048,5202,883,527,9238.9215.929.46+5.38Marine transport and others1,388,086,2511,064,259,85423.33-25.50-29.12+3.92
Main business by regionRegion
Operatingrevenue
Operating cost
Gross protrate (%)
Year-on- yearchange in operatingrevenue (%)
Year-on-yearchange inoperating cost (%)
Year-on-yearchange in grossprot rate (%)Chinese Mainland18,330,998,55016,450,665,19110.2615.6420.55-3.65Chinese Mainland (export sales)964,530,587746,929,90622.56-0.37-18.46+17.18Europe1,096,740,5431,231,226,688-12.2625.0542.05-13.43Asia (excluding Chinese Mainland)6,029,644,6814,952,941,47517.86-23.36-26.71+3.77North America2,386,479,1182,039,827,38414.539.405.40+3.25South America1,183,625,912901,491,57223.8497.22108.39-4.08Africa2,032,771,3141,515,235,64325.4648.5327.92+12.01Oceania717,501,520569,249,85520.66129.95106.71+8.92
ANNUAL REPORT2023Explanations for the main business by sector, product, region and sales model
1. The amount listed in
“Chinese Mainland (export sales)”in“Main business by region”was the main operation incomefrom the export sales of this Company to the overseas subsidiaries of the Company and then sales to the related projectsof the domestic customers.
(2). Analysis table of cost-volume-prot relationship
?Applicable√ Not Applicable
(3). Fulllment of major purchasing contracts and sales contracts
√Applicable? Not ApplicableFulllment of major sales contracts signed by the reporting period√Applicable? Not Applicable
Unit: 100 million Yuan Currency: CNYSubject-matter of contractThe opposite party
Totalcontractedvalue
Totalamountperformed
Amountperformedduring thereporting period
Amountto beperformed
Normallyperformed
or not
Explanationfor abnormalperformanceof the contract
Contract for ECT Terminal of EastPort, Sri Lanka
Chairman of Sri LankaPorts Authority
2.82560.9026801.92292YesGeneral Contract for IntelligentHandling System of No. 9-10Berth in Dalanping South PortOperation Section, DalanpingPort Area, Qinzhou Port
Honggang Wharf Co.,Ltd. in Guangxi QinzhouTariff Free Port AreaLegal representative:
Wen Furong
14.373411.603116.053752.77029YesProcurement of double-trolleyquayside container cranes forPhase I project of the ContainerTerminal Project in East OperationSection of Yantian Port Area,Shenzhen Port (secondary)
Hu Chaoyang12.933.87909.051Yes
Note: Unit of contracted value of Sri Lanka Project: USD 100 millionFulllment of major purchasing contracts signed by the reporting period?Applicable√ Not Applicable
(4). Cost analysis table
Unit: Yuan
By productProduct
Items of coststructure
Amount in thecurrent period
Proportion intotal cost in thecurrent period (%)
Amount in thesame period ofthe last year
Proportion of theone in the sameperiod of the lastyear in total costs (%)
Year-on-yearchange (%)
ExplanatorynotesPort machinery
Raw material cost,labor cost andproduction cost
17,769,268,79862.5517,409,218,33566.922.07
Normal operatinguctuationsHeavy-dutyequipment
Raw material cost,labor cost andproduction cost
5,139,018,03318.092,851,639,12210.9680.21
Normal operatinguctuationsEngineeringconstructionprojects
Raw material cost,labor cost andproduction cost
1,551,493,1065.461,618,116,0536.22-4.12
Normal operatinguctuationsSteel structureand relatedincome
Raw material cost,labor cost andproduction cost
2,883,527,92310.152,634,320,68710.139.46
Normal operatinguctuationsMarinetransport andothers
Raw material cost,labor cost andproduction cost
1,064,259,8543.751,501,571,1515.77-29.12
Normal operating
uctuations
Section III Management Discussion and Analysis
Other information about cost analysis: None
(5). Changes in consolidation scope attributable to changes in equity of main subsidiaries during the reporting period
?Applicable√ Not Applicable
(6). Signicant change or adjustment of business, products or service during the reporting period
?Applicable√ Not Applicable
(7). Particulars about main customers and suppliers
A. Main customers of the Company√Applicable? Not ApplicableThe sales to the top 5 customers were RMB 5,283,790,600, accounting for 16.04% of the total annual sales; the sales to therelated parties among the top 5 customers were RMB 1,927,777,100, accounting for 5.85% of the total annual sales.Indicate whether sales to a single customer accounted for over 50% of the total sales, there was any new customer in thetop ve customers, or the Company heavily relied on a few number of customers during the reporting period.?Applicable√ Not ApplicableB. Main suppliers of the Company√Applicable? Not ApplicableThe purchases from the top 5 suppliers were RMB 4,324,267,200, accounting for 15.37% of total annual purchases; thepurchases from the related parties among the top 5 suppliers were RMB 1,741,147,900, accounting for 6.19% of totalannual purchases.Indicate whether sales to a single supplier accounted for over 50% of the total sales, there was any new supplier in the topve suppliers, or the Company heavily relied on a few number of suppliers during the reporting period.?Applicable√ Not ApplicableOther descriptionNone
3. Expenses
√Applicable? Not ApplicableThe change in selling and distribution expenses was mainly due to the Company’s increased eorts in market expansionand marketing.The change in general and administrative expenses was mainly due to the increase in corporate consulting fees.The change in nancial expenses was mainly due to lower interest expenses resulting from the decrease in the interest-bearing liabilities of the Company and the increase in exchange gains from fluctuations in the exchange rate of RMBagainst USD.The change in research and development expenditures was mainly due to the increase in the expensed expenditures forresearch and development projects of the Company.
4. R&D investments
(1). Detail table of R&D investments
√Applicable? Not Applicable
Unit: YuanCurrent expensed R&D investments1,311,556,665Current capitalized R&D investments0Total R&D investments1,311,556,665
ANNUAL REPORT2023
Proportion of total R&D investments in operating revenue (%)3.98Proportion of capitalized R&D investments (%)0.00
(2). Detail table of R&D employees
√Applicable? Not ApplicableNumber of R&D employees in the Company1,649Proportion of number of R&D employees in the total employees of the Company (%)19.86
Educational structure of R&D employeesEducational structure categoryNumber
Doctor10Master272Undergraduate1,207Junior College138Senior high school and below22
Age structure of R&D employeesAge structure categoryNumber
Under 30 (exclusive)23630-40 (inclusive of 30 and exclusive of 40)58840-50 (inclusive of 40 and exclusive of 50)69350-60 (inclusive of 50 and exclusive of 60)13260 and above0
(3). Explanation
?Applicable√ Not Applicable
(4). Reasons for any signicant change in the composition of R&D personnel and the impact on the future development of
the Company?Applicable√ Not Applicable
5. Cash ows
√Applicable? Not ApplicableThe change in the net cash flows from operating activities was mainly due to the increase in cash received from theCompany’s sale of goods and provision of services.The change in net cash ows from investing activities was mainly due to the increase in cash paid by the Company for thepurchase and construction of xed assets.The change in net cash ows from nancing activities was mainly due to the repayment of loans by the Company.(II) Explanation for the signicant changes in prots due to non-main business?Applicable√ Not Applicable(III) Analysis of assets and liabilities√Applicable? Not Applicable
Section III Management Discussion and Analysis
1. Assets and liabilities
Unit: Yuan
Item
Amount atthe end of thecurrent period
Proportion of theamount at the end ofthe current period in
total assets (%)
Amount at the endof the previousperiod
Proportion of theamount at the end ofthe previous period in
total assets (%)
Year- on- yearchange (%)
NotesMonetary funds5,105,078,4366.022,397,047,7133.06112.97Notes receivable14,122,0310.0256,114,6570.07-74.83Receivables nancing965,569,1221.14439,912,4280.56119.49Advances to suppliers1,313,834,0631.55951,212,4221.2238.12Non-current assets due withinone year
1,341,408,6311.58900,213,4111.1549.01Other current assets476,726,3810.56279,067,3410.3670.83Long-term receivables1,457,182,459 1.722,402,265,5653.07-39.34Other equity instrumentinvestment
104,859,3740.1273,475,6190.0942.71Short-term borrowings4,781,640,7795.631,793,682,9522.29166.58Contract liabilities19,230,649,196 22.6613,348,150,19717.0744.07Tax payable324,641,1340.38238,103,8750.3036.34Deferred income tax liabilities133,272,2700.1699,240,9720.1334.29Other non-current liabilities247,185,3300.29181,805,2070.2335.96Other descriptionMonetary funds increased mainly due to the increase in the Company’s advances received on contracts.Notes receivable decreased mainly due to the decrease in commercial acceptance bills received by the Company.Receivables nancing increased mainly due to the increase in bank acceptance bills received by the Company.Advances to suppliers increased mainly due to the increase in the Company’s advance payment for purchases.Non-current assets due within one year increased mainly due to the increase in the Company’s long-term receivables duewithin one year.Other current assets increased mainly due to the increase in the Company’s input tax to be deducted.Long-term receivables decreased mainly due to the decrease in receivables from the Company’s Build-Transfer (BT)projects.Investment in other equity instruments increased mainly due to the Company’s additional new investment projects.Short-term borrowings increased mainly due to the increase in the short-term borrowings of the Company from banks.Contract liabilities increased mainly due to the increase in the Company’s advances received on contracts.Tax payable increased mainly due to the increase in value-added tax and surcharges payable resulting from the soundbusiness development of the Company.Deferred income tax liabilities increased mainly due to the increase in the Company’s taxable temporary dierence.Other non-current liabilities increased mainly due to the increase in the Company’s output tax to be written o.
2. Overseas assets
√Applicable? Not Applicable
(1). Asset size
Including: overseas assets of 13,477,176,758 (Unit: Yuan, Currency: CNY), accounting for 16% of the total assets.
(2). Related explanation for relatively high proportion of overseas assets
?Applicable√ Not Applicable
ANNUAL REPORT2023
3. Particulars about main restricted assets as at the end of the reporting period
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemBook value at the end of the periodReason for restrictionMonetary funds72,908,531
Special funds for overseas escrow account, deposits for letter of credit and letterof guarantee etc.Fixed assets2,447,188,251Collateral for loanLong-term receivables1,435,459,418Hypothecation for loanOther non-current assets3,616,427,706Hypothecation for loanContract assets146,326,607Hypothecation for loanAccounts receivable254,958,240Hypothecation for loanIntangible assets1,024,431,906Hypothecation for loan
4. Other description
?Applicable√ Not Applicable(IV) Analysis of operational information of the industry√Applicable? Not ApplicableIn terms of port machinery business, the automated and intelligent upgrade of global ports brought new opportunitiesfor port upgrading. However, the accelerated group integration of Chinese ports and the contest with other Chineseport machinery manufacturers led to increasingly fierce competition and imposed higher requirements for cost andinnovation. Mobile machinery products enjoy a huge market space, featuring a high degree of standardization.In terms of oshore engineering business, the traditional oil and gas oshore engineering market is gradually recovering,and international oil prices will remain high in the medium and long term, beneting the oshore equipment market.In terms of steel structure business, as the nationwide eorts to build green transportation infrastructure are intensiedand Chinese urbanization is accelerating, the market demand for steel-structured bridges has increased, but the Chinesemarket shows a trend of low-price competition.In terms of new industries, a series of sectors where the Company operates have good market prospects, such asprefabricated buildings, photovoltaic power generation, elevator installation, and mechanical and electrical engineering.(V) Analysis of investmentOverall analysis of external equity investment√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Investment amount by the end of reporting period2,773,273,393Changes in investment amount-172,127,215Investment amount in the same period of the last year2,945,400,608Change in investment amount (%)-6
Section III Management Discussion and Analysis
1. Signicant equity investment
√Applicable? Not Applicable
Unit:
’0,000 Yuan Currency: CNYName ofinvestedentity
Main business
Whetherthe subjectis mainlyengaged ininvestmentbusinessInvestmentmannerInvestmentamount
Shareholding
ratio
Whether toconsolidate
Statementitem (ifapplicable)Fundsource
Partner (ifapplicable)
Investmentterm(if any)
Progressas at thebalancesheet dateExpectedearnings(if any)Impact oncurrentprot orlossLawsuitinvolvedor notDisclosuredate (if any)
Disclosureindex (if any)ZhenhuaHaitongIntelligentEquipmentCo., Ltd.R&D, design,procurement,manufacturing,sales, maintenance,transformation andupgrading of, andafter-sales servicefor reach stackers,stacker forkliftsand their derivativeproducts.
YesNewlyestablished
4,00080%Yes
Self-ownedfunds
ShanghaiYichuiMachineryTechnology
Co., Ltd.
Completedthe companyregistrationprocedures.
0No
December 7,
2023
SeeExtraordinaryAnnouncementNo. 2023-051 fordetailsTotal///4,000//////////
2. Signicant non-equity investment
√Applicable? Not ApplicableXiong’an Zhenhua Co., Ltd. (“Xiong’an Zhenhua”) is a wholly-owned subsidiary of the Company. To further optimize itsresource allocation and better serve the development of primary business, the Company planned to reduce Xiong’anZhenhua’s registered capital by RMB 1.9 billion. After the capital reduction, Xiong’an Zhenhua’s registered capital wouldbe reduced from RMB 2 billion to RMB 0.1 billion. The capital reduction would not lead to the change in the ownershipstructure of Xiong’an Zhenhua, and the Company would still hold 100% of its stock equity. The above-mentionedmatters were reviewed and approved at the 21st meeting of the 8th Board of Directors of the Company. See the relevantannouncement (Extraordinary Announcement No. 2023-025) disclosed by the Company on the website of the ShanghaiStock Exchange (www.sse.com.cn) and designated information disclosure media on June 8, 2023 for details. Xiong’anZhenhua completed the registration of change of registered capital. After the capital reduction, its registered capital isRMB 0.1 billion, and the Company holds 100% of its stock equity.
3. Financial assets measured at fair value
√Applicable? Not Applicable
Unit: Yuan Currency: CNYAssetclass
Beginningbalance
Prot or loss onchanges in fairvalues for the period
Accumulated fairvalue changesrecognized in
equity
Impairmentprovision for
the period
Amountpurchased in
the period
Amount sold/redeemed in the
period
Otherchanges
Endingbalance
Stock869,045,064-27,339,814-129,548,853712,156,397Total869,045,064-27,339,814-129,548,853712,156,397
Securities investment√Applicable? Not Applicable
Unit: Yuan Currency: CNY
SecuritiesVariety
Stockcode
Stockabbreviation
Initialinvestment
cost
Fundsource
Book value atthe beginning
of the period
Prot or losson changes infair values for
the period
Accumulated
fair valuechangesrecognized
in equity
Amountpurchased
in theperiod
Amountsold in the
period
Prot or
loss oninvestmentsin the period
Book valueat the end of
the period
Accounting
subject
Stock06198Qingdao Port308,515,588
Self-ownedfunds
348,072,75021,560,783-121,547,68961,235,401248,085,844
Held-for-tradingnancial
assets
ANNUAL REPORT2023
SecuritiesVariety
Stockcode
Stockabbreviation
InitialinvestmentcostFundsource
Book value atthe beginningof the period
Prot or losson changes infair values forthe period
Accumulatedfair valuechangesrecognizedin equity
Amountpurchasedin theperiod
Amountsold in theperiod
Prot orloss oninvestmentsin the period
Book valueat the end ofthe period
AccountingsubjectStock03969CRSC617,854,000
Self-ownedfunds280,317,6121,028,720-20,920,710281,346,332
Held-for-tradingnancialassetsStock300095Huawu Stock11,071,606
Self-owned
funds199,652,466-30,577,696-893,07417,010,720168,181,696
Held-for-tradingnancial
assetsStock601919
COSCOSHIPPINGHOLDINGS
420,000,000
Self-ownedfunds
40,132,120-18,681,505-6,908,09021,654,24214,542,525
Held-for-tradingnancial
assetsStock000166
ShenwanHongyuan
200,000
Self-ownedfunds
870,116-670,116-200,000665,553-
Held-for-tradingnancial
assetsTotal//1,357,641,194/869,045,064-27,339,814-129,548,853121,486,626712,156,397/
Statement of securities investment?Applicable√ Not ApplicablePrivate equity investment?Applicable√ Not ApplicableDerivatives investment?Applicable√ Not Applicable
4. Progress on the major assets restructuring during the reporting period
?Applicable√ Not Applicable
(VI) Sales of signicant assets and equities
√Applicable? Not Applicable
1. To maximize the value of shareholders and rationally allocate the asset structure, the Company and its subsidiaries
Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd. and Shanghai Zhenhua Heavy Industries Port Machinery GeneralEquipment Co., Ltd. planned to dispose of part or all of the held-for-trading nancial assets at the right time accordingto market conditions, and authorize the Company’s management to dispose of them at its discretion according to stockmarket conditions. The above-mentioned matters regarding sale of stocks were reviewed and approved at the 22ndmeeting of the 8th Board of Directors of the Company. See the relevant announcement (Extraordinary Announcement No.2023-030) disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designatedinformation disclosure media on June 29, 2023 for details. See“(V) Analysis of investment”in“Management Discussionand Analysis” of this annual report for details of the Company’s holdings.
2. To effectively revitalize assets, optimize asset allocation and promote the healthy and sustainable development of
the company, Jiahua Shipping Co., Ltd., controlled by the Company’s wholly-owned subsidiary, planned to sell its semi-submersible vessels“RED ZED I”and“RED ZED II” to Olhai Marine Services Co., Ltd (“Olhai”) at a price of USD 103 millionper vessel. The above-mentioned matters regarding sale of stocks were reviewed and approved at the 28th meeting ofthe 8th Board of Directors and the 2023 Third Extraordinary General Meeting of Shareholders of the Company. See therelevant announcement (Extraordinary Announcement No. 2023-047) disclosed by the Company on the website of theShanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on November 14, 2023 fordetails. Relevant matters are proceeding orderly.
Section III Management Discussion and Analysis(VII) Analysis of the primary holding companies and the joint-stock companies√Applicable? Not Applicable
Unit: Yuan Currency: CNYCompany NameMain product or services
Registered
capital
Asset size
Net prot/(loss)
Nantong Zhenhua HeavyEquipment ManufacturingCo., Ltd.
Installation of heavy port equipment, engineering vessels, heavymetal structure and its parts; manufacturing and installation of gearbox, container yard crane, super heavy-duty bridge steel structure,heavy marine machinery equipment; leasing of cranes; specializedcontracting of steel structures
2,500,000,00011,151,663,58988,169,483Shanghai Zhenhua HeavyIndustries Port MachineryGeneral Equipment Co., Ltd.
Sales of port loading and unloading machine, bulk cargo andcontainer machine, port engineering vessels (including floatingengineering crane), material handling mechanical products andparts, sales and technical services, installation and maintenance,technical consultation of all types of machine and equipment, keyparts of the raw materials and accessories equipment
2,184,730,0002,327,805,54945,353,983Shanghai Zhenhua HeavyIndustries Group (Nantong)Transmitter Co., Ltd.
Construction and installation of large-scale port equipment,engineering vessels, offshore heavy equipment, mechanicalequipment, gear box for wind power generation equipment; large-sized reverse branch, transmission mechanism, dynamic positioning,large-sized anchor windlass, oshore oil platform lifting device andcomponents; design and manufacturing of the accessories
738,878,3292,683,890,044135,889,441Shanghai Zhenhua PortMachinery (Hong Kong)Co., Ltd.
Design, manufacturing and sales of port machinery, engineeringvessel, steel structure and other parts
HKD 50,000,00014,168,563,06627,708,656Greenland Heavylift(Hongkong) Limited
Marine transportUSD 91,975,1582,648,850,51248,199,340ZPMC Qidong MarineEngineering Co., Ltd.
Machinery manufacturing303,000,0001,573,572,492-126,200,596CCCC Financial Leasing Co.,Ltd.
Finance lease9,000,000,00058,613,990,9781,209,298,301China Communicationsconstruction USA. Inc
Construction of port, waterway, highway and bridgeUSD 50,000,000255,246,4141,088,291Jiangsu Longyuan ZhenhuaMarine Engineering Co.,Ltd.
Fabrication and installation of steel structure; foundation
construction, equipment installation and maintenance of offshore
wind power facilities; construction and maintenance of submarine
cable system; marine engineering construction, equipment
installation and maintenance; leasing of installation equipment
260,000,0004,398,271,0802,932,423(VIII) Particulars about structured entities controlled by the Company?Applicable√ Not ApplicableVI. Discussion and analysis of the future development of the Company(I) Industrial structure and trend
√Applicable? Not Applicable
1. Analysis of macroeconomic situation
From a macro perspective, the“timing”and“trend” are generally favorable. First, China’s economic upturn unlocks newopportunities. As emphasized at the Central Economic Work Conference, we must push ahead with transforming thegrowth model, making structural adjustments, improving quality, and enhancing performance, thus opening up newspace for the Company’s high-quality development. Secondly, China accelerates the construction of a new developmentpattern, which has brought new opportunities, further expands the domestic regional market, and speeds up its eorts togo global at a high standard, in conjunction with the accelerated construction of“ve centers”- international economiccenter, financial center, trade center, shipping center and sci-tech innovation center, offering new chances for theCompany to optimize its structural layout and allocation of resource factors. Thirdly, the improvement and upgrading ofeconomic structure and industrial transformation present new opportunities. New urbanization, regional integration, new
ANNUAL REPORT2023
industrialization and agricultural modernization accelerates, the development of a modern industrial system is expedited,and new productive forces are developed at a faster pace, adding new impetus to the Company’s transformation,upgrading and innovative development.
2. Analysis of industry situation
From the industry situation,“crisis”and“opportunity”coexist. As homogeneous competition in the traditionalequipment manufacturing market is heating up, and prot margins are being narrowed, it becomes the core of marketcompetition to enhance the capabilities for high-end equipment upgrading, system integration, independent control,basic supporting facilities, hardware and software integration, value-added services, green development, intelligentmanufacturing and lean production. China is unswervingly following a new path to industrialization in developingthe equipment manufacturing industry, driven by advanced industrial bases and modern industrial chains, setting thepromotion of intelligent manufacturing as its main direction, with a focus on the accelerated deep integration of new-generation information technology into manufacturing industry. All these measures will reinforce the capabilities ofindustrial bases and improve the comprehensive integration, thus accelerating China’s historical transformation from amanufacturing giant with a focus on quantity to one with a qualitative edge.(II) Development strategy of the Company√Applicable? Not Applicable
1. Overall development strategy
With“1544”overall development strategy as a strategic guide, gradually build the Company into a globally competitivetechnology-oriented, management-oriented and quality-oriented world-class equipment manufacturing enterprise.Firmly anchor the goal of building a technology-oriented, management-oriented and quality-oriented world-classenterprise, seize the global and national development opportunities, consolidate and bring into full play the enterprise’sown advantages, and fully achieve the goal. Work hard on“ve types of business”, solidly promote“four main lines”, andfocus on improving the“four-thinking” ability.
2. Measures for industrial development
(1) Firm making the primary business stronger, better and bigger. The port machinery business will focus on high-
end, intelligent and green development, expand the product lines of port machinery, accelerate the application ofmodern technologies such as 5G and articial intelligence, increase the eorts in tackling problems in key technologies,consolidate the long-term partnership with global important customers, and transform and upgrade from productservices and technical services to full lifecycle services, and continue to consolidate the leading position and gains-to-scale in port machinery. The offshore engineering business will pay close attention to the development trend of themarine economy, synchronously accelerate the market promotion and the technical innovation of oshore engineeringproducts, seize the opportunities of cooperation with important customers, continue to implement various projectssuch as engineering vessels, crane vessels, wind power installation (operation and maintenance) vessels and so on, andimprove the level of production performance and cost control of offshore engineering projects. In terms of shippingbusiness, based on upgrading the eet management and guaranteeing the transportation of the Company’s products,it will seize the opportunities of shipping recovery, offshore wind power construction and overseas industrializedinfrastructure construction to improve the industrial competitiveness and the scale eciency of the enterprise.
(2) Increase resources investment to develop the mature new business. By seizing the opportunities of
“newinfrastructure Construction”,“double-carbon”action and urban transformation, the Company increases resourcesinvestment to develop mature new business such as steel structure, oshore wind power and sky parking, gives play toits advantages in fabrication and transportation of steel structure, increase the layout of internal and external productionand manufacturing resources to accelerate the implementation of the benchmark projects in key national regions andoverseas steel structure markets. By taking the opportunity of national new energy development, and leveraging itsunique competitiveness in the eld of transportation and installation of oshore wind power equipment, the Companystrengthens the professional cooperation with outstanding enterprises in the industry, further excavates the potentialof wind power market in important national regions such as Guangdong and overseas regions, strives to win the bid for
Section III Management Discussion and Analysis
more general contracting projects for representative wind power projects, and explores the wind farm service operationmarket. The Company brings into full play the demonstration effects of the benchmark parking projects built or inprogress, further gives play to the advantages in equipment and technology, and gradually explores the construction ofintelligent parking full-scene solutions and the whole industry chain service model.
(3) Actively explore new elds related to the primary business. By seizing the opportunity of renewal and reconstruction
of old port machinery in global ports and terminals, the Company strives to obtain the paid value-added services with ahigher market share in the eld of renewal and reconstruction of port machinery, and improve the scale benet of after-market services through advance planning and comprehensive operation. Based on the renewal and renovation of portmachinery, with Terminexus online spare parts service platform as the foundation, the Company will gradually build acomprehensive digital service platform integrating design, consultation, procurement and service, and construct a newbusiness growth pole with digital service as the main carrier.
(4) Moderately develop investment and nancing businesses related to the primary business. By leveraging its brand,
resources, low nancing cost and other advantages, the Company identies the specic advantages, specic regions andspecic partners to carry out investment and nancial business in the right time with a focus on the primary business. Itactively participates in the equity investment of important customers of domestic ports and listed suppliers of supportingparts related to the Company’s primary business, and invests in the projects with low risk and stable benets such asoshore wind power, steel structure, parking garage, etc.
(5) Accelerate other businesses in a steady and orderly manner. Focusing on national strategy, market demand,
development advantages, input-output factors, the Company further explores and accelerates the emerging businessessuch as prefabricated building in a steady and orderly manner. As to the prefabricated building business, the Companyactively implements the prefabricated steel-structured benchmark projects by exploiting its advantages in design andfabrication of steel structures. In the marine economy, people’s livelihood engineering, new energy and other elds, theCompany should strengthen the situation analysis, speed up the efforts to foster differentiated advantages, upgradethe business qualication, and actively follow up and implement the projects with distinct advantages and considerablebenets.(III) Operation plan
√Applicable? Not ApplicableAdhering to the overall requirements of the“Year of High-quality Development and Improvement”, the Company willpromote new achievements in its high-quality development by adopting the“people-centered, port-based, steel-guidedand quality-backed”approach and adhering to the principles of pursuing progress while ensuring stability, promotingstability through progress, and establishing the new before abolishing the old.
1. Keep up with industry development
The Company will accelerate high-end development, and strengthen integrated application and innovation by taking theopportunity of upgrading the traditional equipment industry to high-end development, focusing on the construction,transformation and upgrading of automated terminals; accelerate intelligent development, carry out intelligenttransformation centered around replacement of core equipment components, replacement of production line, andreplacement of manpower with machine, and promote the digital connection among organizations, devices and keyprocesses; accelerate green development, build an ecient, clean, low-carbon and circular green manufacturing system,and create a resource-eective and environment-friendly industrial structure and production mode at a faster pace.
2. Improve the operation system
The Company will improve the intensive operation system, rmly establish the philosophy of“coordinating eorts allover the Company as on a single chessboard”, optimize the organizational structure and operational mechanism ofthe headquarters, and rationalize the relationships among responsibilities, powers and rights of organizations at alllevels; improve the integrated operation system running through all areas, aspects and processes such as scientificresearch, design, procurement, manufacturing, transportation, installation, operation and maintenance, and enhance theintegrated service capabilities of equipment manufacturing; improve the after-sales service system, adopt a customer-
ANNUAL REPORT2023centered approach, establish a lifecycle management system, raise service awareness, optimize customer experience, andincrease service eciency.
3. Strengthen market development
On the basis of consolidating the advantages of traditional business, the Company will intensify eorts to develop marketsegments and incremental markets, increase R&D and market development eorts for green and low-carbon equipment,automated transformation of terminals and electric mobile machinery, continue to promote standardized and modularconstruction of products, and accelerate the rollout of lightweight port machinery products; continue to develop theoshore engineering market, dig into the development of special construction vessels and other segments, consolidatethe core competitiveness of offshore engineering flagship products, and duly advance the development of theinternational oshore engineering market; build core competitiveness in the steel structure market, vigorously expandthe market for heavy and extra-large steel structures, improve qualications, and strengthen comprehensive reform andinnovation in cost, production capacity, technology, model, management and service; speed up the exploration of relatedemerging industries, further investigate new energy, port automated storage and retrieval system (AS/RS) and portmachinery accessory industries, create a pool of strategic partner resources, and improve cooperation mechanisms.(IV) Potential risks√Applicable? Not Applicable
1. Market risk
The main business of the Company is closely related to the operation and development of macro economy and theindustry cycle of the shipping industry. The complexity and difficulties of world economic situation still exist, withgeopolitics, food security, energy security, fragile macroeconomics, growing ination and rising debt crisis continuing toaect global trade and investment, as well as the stability of international nancial markets. The Company will strengthenthe scientic study and judgment of the macro political and economic situation, identify the systematic risks in time, andmake risk response plans in advance.
2. Interest rate and exchange rate risk
The Company’s interest rate risk mainly comes from interest-bearing liabilities. In addition, a certain proportion ofoverseas business brings a certain scale of foreign exchange revenue and expenditure to the Company. The Company willpay close attention to changes in exchange rates, optimize the structure of foreign currency assets and liabilities, adhereto the concept of exchange rate risk neutrality, incorporate exchange rate fluctuations into daily financial decisions,consider exchange costs into project costs, and prevent exchange rate fluctuations from having a large impact onoperating results, so as to achieve sound business development.
3. Supply chain security
As an export-oriented enterprise, the issue of international supply chain security and stability is still serious. The Companywill continue to deepen supply chain management in all respects, integrate internal and external resources, promote thesystematic construction of supply chain, focus on improving the resilience and security level of the supply chain, enhancethe independent controllability of supply, accelerate the localization rate of key systems and important supporting partssuch as electric control assembly, cable reel and elevator, and build the core competitiveness and driving force for thedevelopment of the Company.
(V) Others
?Applicable√ Not Applicable
VII. Explanation of circumstances and reasons for non-disclosure by the Company inconsideration of inapplicable regulations, state secrets and commercial secrets
?Applicable√ Not Applicable
Section IV Corporate Governance
Section IV Corporate Governance
I. Related information about corporate governance
√Applicable? Not ApplicableDuring the reporting period, the Company continuously improved the level of corporate governance, continuouslyimproved the quality of information disclosure, further strengthened investor relations management, and safeguarded thelegitimate rights and interests of the Company and all shareholders eectively in strict accordance with the requirementsof relevant laws, regulations and management documents, ensuring its sustainable and stable development. In 2023, theCompany held a total of 14 meetings of the Board of Directors, 6 meetings of the Board of Supervisors and 4 meetingsof the General Meeting of Shareholders, and the procedures of convening, holding, voting and disclosure of all meetingswere in compliance with laws and regulations and the requirements of the Company’s management system.The Company focused on improving the governance system and continued to strengthen the corporate governancestructure. In 2023, the Company revised the Implementation Rules for Specialized Committees of the Board of Directors”
and changed the list of proceedings of each special committees in accordance with the latest national laws andregulations and the Company’s actual situation, laying the foundation for the standardized and efficient operation ofeach special committee; drafted the“Follow-up, Implementation and Post-Evaluation System for Resolutions of Boardof Directors”to clarify the organizational structure of the Follow-up, Implementation and Post-Evaluation System forResolutions of Board of Directors and its responsibilities, procedures and methods to ensure the implementation andecient execution of the resolutions of Board of Directors; dynamically changed the lists of proceedings and decisionsof each governance body, and integrate them into a“multiple sheets, one table” to clarify the whole-process decision-making chain and further optimize its corporate governance system.The Company earnestly fulfilled its information disclosure obligations and continuously improved the quality ofinformation disclosure. In 2023, the Company continued to consolidate the information disclosure responsibilities ofrelevant entities, stepped up departmental coordination on information disclosure, actively organized special trainingon information disclosure and related transactions, and improved its professional capabilities for information disclosure.During the reporting period, the Company strictly fullled its compliance disclosure obligations in accordance with therequirements of the“Rules Governing the Listing of Stocks on Shanghai Stock Exchange”and the“Management Measuresfor Corporate Information Disclosure”, and increased voluntary disclosure. A total of 108 announcements were issuedduring the year, including 56 extraordinary announcements, 48 online announcement documents and 4 periodic reports.Information disclosure was oriented towards investor needs, featuring concise and clear content and in easily understoodlanguage, which could help investors make value judgments and investment decisions.The Company continued to improve investor relations management and further enhance communication with thecapital market. In 2023, the Company formulated the“Annual Investor Relations Management Plan”to define annualgoals, and introduced the“Work Manual for Investor Relations Management”to regulate work standards. The Companycommunicated with the capital market through multiple channels, at multiple levels and from multiple perspectives.Daily communication was maintained with investors through investor email, investor hotline,“SSE E-Interactive”andother means; regular performance briengs were held, and roadshows and reverse roadshows were actively organized, sothat the Company’s chairman, president, CFO, independent directors, board secretary and heads of relevant departmentscould communicate closely with investors, introduce the Company to the capital market, interpret the Company’sinvestment value, and enhance the mutual understanding and recognition between the Company and investors.Indicate whether there was any material incompliance with the applicable laws and administrative regulations, as well asthe CSRC’s requirements on corporate governance. If yes, please explain.?Applicable√ Not Applicable
ANNUAL REPORT2023II. Specic measures taken by the controlling shareholder and actual controller to guaranteethe asset, personnel, nancial, organizational and business independence of the Company,as well as solutions, progress and subsequent plans when the Company’s independence isintervened?Applicable√ Not ApplicableIndicate whether the controlling shareholder, the actual controller, or any entity under their control is engaged in thesame or similar business with the Company. Please explain the impact of horizontal competition or any signicant changeto horizontal competition on the Company, solutions taken, progress and subsequent plans.?Applicable√ Not ApplicableIII. Brief introduction to the general meeting of shareholdersSession ofmeeting
Convening date
Query index of thewebsite specied forpublishing resolutions
Date of disclosurefor publishingresolutions
Resolutions2022 AnnualGeneral Meetingof Shareholders
June 28, 2023
www.sse.com.cn;enter the stock code tosearch
June 29, 2023
Reviewed and approved the“Proposal on Reviewing the2022 Work Report of Board of Directors”, the“Proposal onReviewing the Work Report of Independent Directors in 2022”
and other proposals (See Extraordinary Announcement No.2023-027 for details)2023 FirstExtraordinaryGeneral Meetingof Shareholders
August 21, 2023
www.sse.com.cn;enter the stock code tosearch
August 22, 2023
Reviewed and approved the“Proposal on the Company’sCompliance with the Conditions for Issuing A Shares toSpecific Targets”, the“Proposal on the Company’s Plan forIssuing A Shares to Specic Targets”and other proposals (SeeExtraordinary Announcement No. 2023-035 for details)2023 SecondExtraordinaryGeneral Meetingof Shareholders
October 24, 2023
www.sse.com.cn;enter the stock code tosearch
October 25, 2023
Reviewed and approved the“Proposal on Reviewing theAdditional Election of Mr. You Ruikai as a Director of theCompany”(See Extraordinary Announcement No. 2023-045for details)2023 ThirdExtraordinaryGeneral Meetingof Shareholders
November 29, 2023
www.sse.com.cn;enter the stock code tosearch
November 30, 2023
Reviewed and approved the“Proposal on Reviewing theSale of Ship Assets by Subsidiaries”(See ExtraordinaryAnnouncement No. 2023-049 for details)
Extraordinary general meetings of shareholders convened at the request of preference shareholders with resumed votingrights?Applicable√ Not ApplicableParticulars about the general meeting of shareholders√Applicable? Not ApplicableIn 2023, the Company convened 4 general meetings of shareholders, which were convened and held in accordance withrelevant laws and rules including the“Company Law of the People’s Republic of China”, the“Rules for General Meetingsof Shareholders of Listed Companies”and the“Articles of Association”; the qualifications of the attendees and theconvener were lawful and eective; the voting procedures and results of the meetings were lawful and eective; and theresolutions of the general meetings of shareholders were lawful and eective.
Section IV Corporate Governance
IV. Directors, Supervisors and Senior Executives
(I) Changes in shares held by current and resigned directors, supervisors and senior executives duringthe reporting period and their remunerations√Applicable? Not Applicable
Unit: ShareNamePostSexAge
Starting dateof tenure
Expiry dateof tenure
Numberof sharesheld at thebeginningof the year
Number ofshares heldat the endof the year
Changein sharesin theyearReason ofchange
Totalremunerationbefore tax fromthe Companyduring thereporting period(RMB’0,000)
Remunerationreceived fromany of theCompany’srelated partiesor notYou Ruikai
Director
Male57
October 24,2023
June 27,
2024
00017.20YesChairmanFebruary 27,
2024
June 27,2024Vice chairman
October 24,2023
February 27,2024OuHuisheng
Director
Male54
September 15,2022
June 27,
2024
00089.29NoGeneral manager(president)
August 30,2022
June 27,2024ZhuXiaohuai
Director
Male55
June 28, 2021
June 27,2024
00088.12NoExecutive generalmanager
December 12,2022
June 27,2024CFOJuly 12, 2021
June 27,2024Wang ChengDirectorMale51
August 25,2021
June 27,2024
00078.05NoZhangJianxing
DirectorMale62
December 28,2022
June 27,2024
0009YesShengLeiming
Independentdirector
Male54June 28, 2021
June 27,2024
00012NoZhang Hua
Independentdirector
Male51June 28, 2021
June 27,2024
00012NoZhaoZhanbo
Independentdirector
Male48June 28, 2021
June 27,
2024
00012NoXia Lijun
Independentdirector
Male48June 28, 2023
June 27,
2024
0006NoZhang Lijie
Supervisor
Male54
August 25,
2021
June 27,
2024
00077.75NoChief supervisor
August 30,
2021
June 27,
2024Zhao JizhuSupervisorMale46June 28, 2023
June 27,
2024
0000YesWei WeiEmployee supervisorMale52June 28, 2021
June 27,
2024
00076.39NoLiu FengVice presidentMale53
October 29,
2021
June 27,
2024
00079.95NoZhang JianVice presidentMale55July 12, 2021
June 27,
2024
00076.01NoShanJianguo
Vice president
Male60
July 12, 2021
June 27,
2024
00071.85NoChief engineer
February 20,
2023
June 27,
2024Li Ruixiang
Vice president
Male49
February 20,
2023
June 27,
2024
00074.94NoChief economistJuly 12, 2021
June 27,
2024
ANNUAL REPORT2023
NamePostSexAge
Starting date
of tenure
Expiry dateof tenure
Numberof sharesheld at thebeginningof the year
Number ofshares heldat the endof the year
Changein sharesin theyearReason ofchange
Totalremunerationbefore tax fromthe Companyduring thereporting period(RMB’0,000)
Remunerationreceived fromany of theCompany’srelated partiesor notSun Li
Chief legal counsel,secretary of theboard, chiefcompliance ocer
Male52July 12, 2021
June 27,
2024
00072.97NoLuHanzhong
Vice presidentMale49
February 20,2023
June 27,
2024
00074.94NoShenQiuyuan
Vice presidentFemale47
February 20,2023
June 27,
2024
00090.57NoLiuChengyun
Director, chairman(resigned)
Male55June 28, 2021
February 26,
2024
00066.50NoBai Yunxia
Independentdirector (resigned)
Female51June 28, 2021
June 28,
2023
0006NoYou HuaSupervisor (resigned)Male61June 28, 2021
April 28,
2023
0000YesLiu Qizhong
Vice president(resigned)
Male60July 12, 2021
February 20,
2023
00024.61NoFei Guo
Chief engineer(resigned)
Male62July 12, 2021
February 20,
2023
00019.30NoTotal//////1,135.44/
NameMain working experiencesYou Ruikai
Born in 1967, male, bachelor, EMBA master, senior engineer. He began his career in July 1990. From April 2007, he successively served asdeputy general manager of the Investment Division of CCCC Second Harbor Engineering Co., Ltd. (“CCCC SHEC”), vice chairman, generalmanager and chairman of CCCC Yunfu New Port Co., Ltd., general manager of the Investment Division of CCCC SHEC, deputy secretaryof the Party Committee general manager of the Investment Division of CCCC SHEC. From August 2013, he served as deputy generalmanager of CCCC SHEC. From May 2016, he successively served as deputy secretary of the Party Committee, director, general manager,secretary of the Party Committee, chairman and general manager of CCCC SHEC. From November 2018 to September 2023, he served assecretary of the Party Committee and chairman of CCCC SHEC. Currently, he is a director and chairman of the Company.Ou Huisheng
Born in 1970, male, PhD, senior economist, accountant, CPA. He began his career in 1992 and successively served as the president ofZhuhai Fuhua Group Co., Ltd. (renamed as Zhuhai Port Co., Ltd. in September 2010), director of Zhuhai Fuhua Group Co., Ltd. (Zhuhai PortCo., Ltd.), director and deputy secretary of the Party Committee of Zhuhai Port Holdings Group Co., Ltd., general manager of Zhuhai PortHoldings Group Co., Ltd., chairman, party secretary, and legal representative of Zhuhai Port Holdings Group Co., Ltd., legal representativeof Zhuhai Port Co., Ltd., chairman of the board of directors of Zhuhai Port Co., Ltd., chairman of Tongyu Heavy Industry Co., Ltd., andchairman of Qingdao Tianneng Heavy Industry Co., Ltd. He has been the general manager (president) of the Company since August30, 2022 and a director of the Company since September 15, 2022. Currently, he is a director and general manager (president) of theCompany.Zhu Xiaohuai
Born in 1969, male, master of MBA, senior accountant. He began his career in July 1991 and successively served as the section memberand vice section manager of Financial Division of CCCC Shanghai Dredging Co., Ltd., vice director of Budget and Finance Department,vice manager (in charge of the work) or manager of Finance Department, and member of commission for disciplinary inspection of CCCCShanghai Dredging Co., Ltd., and the director, chief accountant and Party committee standing member of CCCC Shanghai DredgingCo. Ltd. He has been the executive general manager of the Company since December 12, 2022 and is currently a director, the executivegeneral manager and CFO of the Company.Wang Cheng
Born in 1973, male, master of engineering, senior political worker. He started working in August 1994 and successively served as the vicesecretary or secretary of league committee, and vice secretary or secretary of Party Branch of No. 2 Engineering Co., Ltd. of CCCC ThirdHarbor Engineering Co., Ltd.; vice director and director of Organization Department of CCCC Third Harbor Engineering Co., Ltd.; secretaryof the Party Committee and vice general manager of No. 2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.; chairmanof board of supervisors, vice secretary of the Party Committee, secretary of Committee for Discipline Inspection and chairman of laborunion of CCCC Third Harbor Engineering Co., Ltd.; secretary of Commission for Disciplinary Inspection, supervisor and chairman of boardof supervisors of the Company. Currently, he is a director and the chairman of labor union of the Company.Zhang Jianxing
Born in 1962, male, bachelor, senior accountant. He began his career in August 1985 and successively served as a cadre in the FinanceDepartment of CCCC Shanghai Dredging Co. Ltd., deputy chief of the Finance Section of Jiuzhou Dredging Engineering Company underCCCC Shanghai Dredging Co. Ltd., deputy director and director of the Planning and Finance Department of CCCC Shanghai DredgingCo. Ltd., member of the Party Committee, deputy general manager and chief nancial ocer of CHEC Dredging Co., Ltd., secretary ofthe Party Committee, deputy general manager and chief nancial ocer of CHEC Dredging Co., Ltd., member of the Party Committee,director and chief accountant of CCCC Shanghai Dredging Co. Ltd., dirctor and general manager of CCCC Financial Leasing Co., Ltd., andsecretary of the Party Committee and chairman of the board of directors of CCCC Financial Leasing Co., Ltd. He has been a director of theCompany since December 28, 2022. Currently, he is a director of the Company.
Section IV Corporate GovernanceNameMain working experiences
Sheng Leiming
Born in 1970, male, doctor of laws, rst grade lawyer. He successively served as a lawyer assistant and lawyer in Shanghai Foreign TradeLaw Firm, a teacher of civil and commercial law in East China University of Political Science and Law, partner and chief lawyer of ShanghaiZhongmao Law Firm, and a lawyer of Guantao Law Firm. Currently, he is an independent director of the Company.Zhang Hua
Born in 1973, male, PhD in Economics, associate professor of nance. He successively served as a researcher, lecturer, assistant professorand associate professor at China Europe International Business School. Currently, he is an independent director of the Company.Zhao Zhanbo
Born in 1976, male, PhD. He had served as a teacher in School of Software & Microelectronics, Peking University since 2005 and now he isa professor. He is mainly engaged in the research in Internet business model innovation and corporate development strategy. Currently,he is an independent director of the Company.Xia Lijun
Born in 1976, male, PhD, professor of accounting, certied public accountant. From July 2006 to March 2011, he successively served aslecturer, master tutor, professor and doctoral tutor of the School of Accounting, Shanghai University of Finance and Economics. FromMarch 2011 to March 2023, he served as the director of the of Department of Accounting, Antai College of Economics and Management,Shanghai Jiao Tong University. From March 2011 to present, he has been a professor and doctoral tutor of Antai College of Economicsand Management, Shanghai Jiao Tong University. He is also a member of the Professional Accounting Education Steering Committee ofthe Ministry of Education, a member of the China National MPAcc Education Steering Committee, a director of the Accounting Societyof China, a director of China Audit Society, vice president of Shanghai Audit Society, vice president of Shanghai Cost Research Society,and an executive director of Shanghai Accounting Society. He has been selected into the“Accounting Masters Training Program”of theMinistry of Finance and other talent programs. Currently, he is an independent director of the Company.Zhang Lijie
Born in April 1970, male, master, senior engineer and senior political engineer. He started working in August 1991 and successively servedas deputy manager, manager, section chief of Construction Section and manager of Engineering Department of No.6 Engineering Co.,Ltd. of CCCC Third Harbor Engineering Co., Ltd. Jiaxing Branch; deputy secretary of the Party committee and secretary of the DisciplineInspection Commission, and deputy general manager of CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch; director of the PartyCommittee Work Department and general manager of the Corporate Culture Department of CCCC Third Harbor Engineering Co., Ltd.;secretary of the Party committee and deputy general manager of CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch; member of theParty committee of CCCC Third Harbor Engineering Co., Ltd., secretary of the Party committee, general manager and executive director(legal representative) of Xiamen Branch. Currently, he is the chief supervisor of the Company.Zhao Jizhu
Born in 1978, male, master, senior accountant. He successively served as chief accountant of CCCC Road and Bridge ChongqingFufengshi Highway Development Co., Ltd., deputy general manager of the Finance and Accounting Department, deputy director ofthe General Manager’s Office (in charge of work) and chief accountant of the Construction Management Branch of CCCC Road andBridge International Co., Ltd., director and general manager of CCCC Qingyuan Investment and Development Co., Ltd., assistant generalmanager and deputy general manager of the Audit Department of CCCG, member of the Standing Committee of the CPC and deputygeneral manager of CCCG Real Estate, and secretary of CPC Working Committee, chairman and general manager of CCCC Dingxin. FromAugust 2022 to present, he is a chief expert and deputy general manager of the Audit Department of CCCG and CCCC. Currently, he is asupervisor of the Company.
Wei Wei
Born in February 1972, male, bachelor, senior political worker. He started working in August 1990, and successively served as secretaryof the General Youth League branch of the Technical School of Shanghai Port Machinery Manufacturing Plant, secretary of the YouthLeague Committee, chairman of the labor union of the metal processing workshop, and secretary of the Party branch of the gearboxworkshop of Shanghai Port Machinery Manufacturing Plant; manager of the Human Resources Department, chairman of the Labor Unionand Deputy Secretary of the Party branch of ZPMC Nanhui Base, deputy secretary of the temporary general Party branch, chairman ofthe Labor Union and general oce manager of Shanghai Port Machinery Heavy Industry Co., Ltd.; head of the rst discipline inspectionteam assigned by the Discipline Inspection Committee, director of the Trade Union Oce and deputy general manager (in charge ofwork) of the Administrative Aairs Department of ZPMC. Since May 2021, he has been the vice chairman of the Labor Union and directorof the Labor Union Oce of ZPMC. From January 2024 to present, he serves as director (director, general manager, head) of the WorkDepartment of Party Committee (United Front Work Department of Party Committee, Corporate Culture Department and Labor UnionOce). Currently, he is the employee supervisor and vice chairman of the Labor Union of the Company.Liu Feng
Born in 1971, male, master, senior engineer and senior economist. He started working in July 1995, and successively served as deputydirector (in charge of work) and director of the Second Division of the Department of Industry and Trade of CCCC; director andgeneral manager assistant of the Equipment Manufacturing Marine Heavy Industry Department of CCCC; deputy general manger ofthe Equipment Manufacturing Marine Heavy Industry Department, deputy general manger of Science and Technology EquipmentDepartment, deputy director of Chief Engineer Oce of CCCC; deputy general manager (deputy director) of the Department of Science,Technology and Digitalization (Chief Engineer Oce) of CCCG and CCCC. Currently, he is the vice president of the Company.Zhang Jian
Born in 1969, male, MBA, senior engineer. He successively served as the technician, production planner and assistant director of No. 2Panel beater of Shanghai Port Machinery Manufacturing Plant, director of gearbox branch of Shanghai Port Machinery ManufacturingPlant, vice director and member of the Party committee of Shanghai Port Machinery Manufacturing Plant, vice general manager ofShanghai Port Machinery Heavy Industry Co., Ltd., general manager and president assistant of ZPMC Operation Oce. Currently, he is thevice president of the Company.Shan Jianguo
Born in 1964, male, bachelor, senior engineer. He started working in July 1988, and successively served as the technician in Shanghai PortMachinery Manufacturing Plant, the engineer and chief engineer of ZPMC Machinery Oce, general manager and vice chief engineer ofNo.4 design oce of design company, vice director and director of ZPMC Machinery Oce, manager of budget assessment departmentand the dean of ZPMC Land-based Heavy Industry Research & Design Institute, and the president assistant of the Company. He has beenthe vice general manager (vice president) of the Company since February 2015 and the chief engineer of the Company since February 20,2023. Currently, he is the vice president and chief engineer of the Company.
ANNUAL REPORT2023
NameMain working experiencesLi RuiXiang
Born in 1975, male, bachelor, senior economist. He successively served as the director of Technical Process Department, trainee managerof Manufacturing Department and manager of Quality Assurance Department of Zhangjiagang Base of Shanghai Port Machinery Plant;project leader, oce manager, vice director of Quality Safety Oce of ZPMC Quality Inspection Company, vice general manager andgeneral manager of mechanical supporting base, secretary of Party Branch, vice chief economist, general manager of budget assessmentdepartment, general manager of Material and Equipment Procurement Department and president assistant of the Company. He hasbeen the vice president of the Company since February 20, 2023. Currently, he is the vice president and chief economist of the Company.Sun Li
Born in 1972, male, EMBA, senior engineer. He successively served as the project leader and vice manager of Operation Department, vicedirector of Operation Oce and director of O-Shore Oce, general manager assistant, vice president and director of the Company.Currently, he is the chief legal counsel, secretary of the board and chief compliance ocer of the Company.Lu Hanzhong
Born in 1975, male, bachelor, Bachelor of Engineering, senior engineer. He started working in July 1997 and successively served as thesupervisor of Process Department and deputy manager of Process Department of the Company, deputy general manager of ChangxingBase, general manager of Changxing Base, deputy chief craftsman and manager of Process Department of the Company, and generalmanager of Steel Structure Division. He has been the vice president of the Company since February 20, 2023. Currently, he is the vicepresident and chief craftsman of the Company.Shen Qiuyuan
Born in 1977, female, bachelor of economics, senior economist. She started working in August 1999, and successively served as theproject supervisor of the Business Department, general manager of the Project Management Department of the Business Oce, generalmanager of the Port Machinery Business Department, deputy chief economist of the Company, general manager of the investmentgroup and general manager of the Strategic Development Department of the Company. She has been the vice president of the Companysince February 20, 2023. Currently, she is the vice president of the Company.Liu Qizhong
Born in 1964, male, bachelor, senior economist. He started working in August 1983 and successively served as the manager of OperatingDepartment and the vice president of the Company, and serves as the director of the Company since March 2004. He resigned as adirector of the Company on December 28, 2022 for personal reasons, and resigned as the vice president of the Company on February 20,2023 for personal reasons. Currently, he is a consultant of the Company.Liu Chengyun (resigned)
Born in 1969, male, master, senior economist, senior engineer. He began his career in August 1989, and successively served as deputydirector of CCCC Fourth Harbor Engineering Co., Ltd., vice general manager of CCCC Investment Co., Ltd., secretary of the Partycommittee, chairman and general manager of CCCC Nansha Investment Development Co., Ltd. and CCCC Urban Investment Holding Co.,Ltd., general manager and secretary of CPC Working Committee of CCCC South China regional headquarters, general manager of theStrategic Development Department of China Communications Construction Company Ltd. (CCCC), general manager of the InvestmentDivision of CCCC, director of the board oce and general manager of the Strategic Development Department of China CommunicationsConstruction Group Co., Ltd. (CCCG) and CCCC. He resigned as the chairman and director of the Company on February 26, 2024 due tojob adjustment. Currently, he is the deputy general manager of CCCG.Bai Yunxia(resigned)
Born in October 1973, female, PhD in accounting from Xiamen University, post-doctor in accounting of Guanghua School ofManagement, Peking University, professor of accounting, doctoral tutor. She started working in 1995, and successively served as theassistant engineer of Kaiyuan Group under Xi’an Jiaotong University, lecturer of School of Economics and Management of TongjiUniversity, research scholar of CKGSB. She resigned as an independent director of the Company due to the expiration of her term on June28, 2023.You Hua(resigned)
Born in 1963, male, bachelor, senior accountant. He successively served as the assistant director and deputy director of FinanceDepartment of China Harbour Engineering Company Limited, and nance manager of CHUWA Bussan Company Limited (Japan); generalmanager of the Finance Department and director of Capital Settlement Center, deputy chief accountant and general manager of FinanceDepartment of China Harbour Engineering Company (Group); general manager of Capital Department and director of Capital SettlementCenter of CCCG; director and chief accountant of China Harbour Engineering Company Limited; director, vice general manager and chiefaccountant of CCCC Investment Co., Ltd.; director, general manager and deputy secretary of Party Committee of CCCC Finance Co., Ltd.Since December 2019, he has been a full-time outside director of CCCG. He resigned as a supervisor of the Company due to personalreasons on April 28, 2023.Fei Guo(resigned)
Born in 1962, male, EMBA, professor-level senior engineer. He successively served as the engineer of Shanghai Port Machinery Plant,electrical engineer of the Technology Department, director of No. 5 Electrical Office, vice chief engineer, chief engineer, director ofDevelopment Oce and vice president of ZPMC. He resigned as the chief engineer of the Company on February 20, 2023 due to personalreasons.Notes to other circumstances?Applicable√ Not Applicable
(II) Incumbency of current and resigned directors, supervisors and senior executives during thereporting period
1. Position at the shareholder entity
√Applicable? Not Applicable
Section IV Corporate Governance
Name of in-service staName of shareholding entityPosition
Starting date oftenure
Expiration date
of tenureLiu Chengyun
China Communications ConstructionGroup Co., Ltd.
Vice general managerJuly 2023Zhao Jizhu
China Communications ConstructionGroup Co., Ltd.
Deputy general manager (deputy director),
chief expert of Audit Department (Dispatched
Supervisor Oce, Audit Center)
August 2022Statement of the position held in shareholding entity
2. Statement of the position held in other entities
√Applicable? Not ApplicableName of in-service sta
Name of other entities
Position held in otherentities
Starting date of
tenure
Expiration date
of tenureOu Huisheng
CCCC Highway Bridges National Engineering Research CentreCo., Ltd.
DirectorJanuary 2023Zhu XiaohuaiCCCC Financial Leasing Co., Ltd.DirectorMay 2018Zhang JianCCCC Shanghai Equipment Engineering Co., Ltd.ChairmanMarch 2017Shan Jianguo
CCCC Highway Bridges National Engineering Research CentreCo., Ltd.
Vice general managerDecember 2019Shanghai Ocean Engineering Equipment ManufacturingInnovation Center Co., Ltd.
DirectorNovember 2020CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
DirectorNovember 2020Sinoocean Oshore Assets Management LimitedDirectorSeptember 2021Lu HanzhongNantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.Executive directorDecember 2022November 2023Shen Qiuyuan
Zhenhua Marine Energy (HK) Co., Ltd.ChairmanAugust 2021Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd.DirectorAugust 2021Zhang JianxingCCCC Industrial Investment Holding Company Ltd.DirectorDecember 2022Zhao Zhanbo
School of Software & Microelectronics, Peking UniversityProfessor2015Yingda Taihe Life Insurance Co., Ltd.Independent directorJanuary 2022Zhang Hua
China Europe International Business SchoolVice professorJuly 2016Jiangsu Liyan Technology Co., Ltd.Independent directorApril 2017Zhejiang Hengwei Battery Co., Ltd.Independent directorMay 2017April 2023Nanjing Sunlord Electronics Corporation Ltd.Independent directorNovember 2017Chengdu Qushui Science and Technology Co., Ltd.Independent directorDecember 2019Sheng Leiming
All China Lawyers AssociationVice presidentDecember 2011Guantao Law FirmLawyer2016Tsingtao Brewery Co., Ltd.Independent directorMay 2020Shanghai United Imaging Healthcare Co., Ltd.Independent directorDecember 2020Shanghai Foreign Service Holding Group Co., Ltd.Independent directorSeptember 2021Kweichow Moutai Co., Ltd.Independent directorJune 2022
Xia Lijun
Shanghai Jiao Tong University
Director of Accounting
Department
March 2011 March 2023Shanghai Jiao Tong UniversityProfessor, doctor tutorMarch 2011Huatai Baoxing Fund Management Co., Ltd.Independent directorJuly 2016March 2024Zhejiang Sunrise Garment Group Co., Ltd.Independent directorOctober 2018Shanghai Bacai Information Technology Co., Ltd.Executive directorApril 2018Shenzhen Huitai Medical Equipment Co., Ltd.Independent directorNovember 2019East Money Information Co., Ltd.Independent directorJanuary 2020January 2023Shanghai Tongji Science & Technology Co., Ltd.Independent directorApril 2020Orient Securities Co., Ltd.Independent supervisorMarch 2021Jiangsu Recbio Technology Co., Ltd.Independent directorJune 2021Statement of the position held in other entities
ANNUAL REPORT2023
(III) Remuneration of directors, supervisors and senior executives√Applicable? Not ApplicableDecision-making process for the remuneration of directors,supervisors and senior executives
In accordance with the regulations of“Articles of Association”, the remuneration ofdirectors and supervisors is subject to the general meeting of shareholders and theremuneration of the senior executives is approved by the board of directors.Do directors recuse themselves when the Board of Directorsdiscusses matters relating to their remuneration
YesRecommendations made by the Remuneration and AppraisalCommittee or the special meeting of independent directors onthe remuneration of directors, supervisors and senior executives
The Remuneration and Appraisal Committee maintained that the remuneration
policy and compensation for directors, supervisors and senior executives of the
Company during the reporting period were legal, compliant and reasonable.Basis for deciding the remuneration of directors, supervisors andsenior executives
The basic salary plus performance bonus is assessed in combination with the
quantitative index of production and operation, etc.Actual payout of remuneration for directors, supervisors andsenior executives
See the“Changes in shares held by current and resigned directors, supervisors
and senior executives during the reporting period and their remunerations”in this
section for details.Total remuneration actually obtained by all directors, supervisorsand senior executives at the end of reporting period
RMB 11,354,400
(IV) Change in directors, supervisors and senior executives
√Applicable? Not Applicable
NamePostChangeReason of changeYou RuikaiDirector, ChairmanElectedJob adjustmentXia LijunIndependent directorElectedAdditional director, elected by the general meeting of shareholdersZhao JizhuSupervisorElectedJob adjustmentShan JianguoChief engineerEngagedJob adjustmentLi RuixiangVice presidentEngagedJob adjustmentLu HanzhongVice presidentEngagedJob adjustmentShen QiuyuanVice presidentEngagedJob adjustmentLiu ChengyunDirector, ChairmanResignedJob adjustmentBai YunxiaIndependent directorResignedExpiry of term of oceYou HuaSupervisorResignedRetired for personal reasonsLiu QizhongVice presidentResignedPersonal reasonsFei GuoChief engineerResignedPersonal reasons
(V) Punishments by securities regulatory authority in recent three years
?Applicable√ Not Applicable
(VI) Others
?Applicable√ Not Applicable
V. Related information about the board meetings convened during the reporting period
Session of meetingConvening dateResolutions17th meeting of the 8thBoard of Directors
February 20, 2023
Reviewed and approved the“Proposal on Reviewing the Appointment of Mr. Shan Jianguo as ChiefEngineer” and other proposals (See Extraordinary Announcement No. 2023-002 for details)18th meeting of the 8thBoard of Directors
March 30, 2023
Reviewed and approved the“Proposal on Reviewing the 2022 Work Report of Board of Directors”andother proposals (See Extraordinary Announcement No. 2023-003 for details)19th meeting of the 8thBoard of Directors
April 28, 2023Reviewed and approved of the“Proposal on Reviewing the 2023 First Quarterly Report of the Company”
Section IV Corporate Governance
Session of meetingConvening dateResolutions20th meeting of the 8thBoard of Directors
May 25, 2023
Reviewed and approved the“Proposal on the Company’s Compliance with the Conditions for IssuingA Shares to Specic Targets”and other proposals (See Extraordinary Announcement No. 2023-012 fordetails)21st meeting of the 8thBoard of Directors
June 7, 2023
Reviewed and approved the“Proposal on Reviewing the 2023 Plan for Issuing Asset-Backed Securities”
and other proposals (See Extraordinary Announcement No. 2023-024 for details)22nd meeting of the 8thBoard of Directors
June 28, 2023
Reviewed and approved the“Proposal on Reviewing the Revision of the Fixed Asset Management
Measures” and other proposals (See Extraordinary Announcement No. 2023-029 for details)23rd meeting of the 8thBoard of Directors
August 3, 2023
Reviewed and approved the“Proposal on Reviewing the Adjustment to Members of Special Committees
under the Board of Directors”and other proposals (See Extraordinary Announcement No. 2023-031 for
details)24th meeting of the 8thBoard of Directors
August 28, 2023
Reviewed and approved the“Proposal on Reviewing the Full Text and Summary of 2023 Semi-Annual
Report of the Company” and other proposals (see Extraordinary Announcement No. 2023-036 for details)25th meeting of the 8thBoard of Directors
September 22, 2023
Reviewed and approved the“Proposal on Reviewing and Revising the Implementation Rules and List of
Proceedings of Specialized Committees of the Board of Directors”and other proposals (See Extraordinary
Announcement No. 2023-040 for details)26th Meeting of the 8thBoard of Directors
October 7, 2023
Reviewed and approved the“Proposal on Reviewing the Additional Election of Mr. You Ruikai as
a Director and the Election of Him as Vice Chairman of the Company”and other proposals (See
Extraordinary Announcement No. 2023-042 for details)27th Meeting of the 8thBoard of Directors
October 30, 2023Reviewed and approved the“Proposal on Reviewing the 2023 Third Quarterly Report of the Company”28th Meeting of the 8thBoard of Directors
November 13, 2023
Reviewed and approved the“Proposal on Reviewing the Sale of Ship Assets by Subsidiaries”and other
proposals (See Extraordinary Announcement No. 2023-046 for details)29th Meeting of the 8thBoard of Directors
December 6, 2023
Reviewed and approved the“Proposal on Reviewing the Foreign Investment for the Establishment of a
Joint Venture” and other proposals (See Extraordinary Announcement No. 2023-050 for details)30th Meeting of the 8thBoard of Directors
December 26, 2023
Reviewed and approved the“Proposal on Reviewing the Long-Term Equity Incentive Plan (Draft) of
Shanghai Zhenhua Heavy Industries Co., Ltd. and Its Summary”and other proposals (see Extraordinary
Announcement No. 2023-053 for details)
VI. Duty performance of directors
(I) Attendance of the directors at the board meetings and the general meeting of shareholders
Director name
Independentdirector or
not
Attendance at Board Meetings
Attendance at thegeneral meetingof shareholdersTimes ofmeetingsshould beattended in
this year
Times ofpersonalattendance
Times ofattendance bytelecommunication
Times ofattendancethrough a
proxy
Times ofabsence
Personalabsence for two
consecutive
times
Times ofattendance at thegeneral meetingof shareholders
You RuikaiNo44100No0Ou HuishengNo1414510No3Zhu XiaohuaiNo1414500No4Wang ChengNo1414610No2Zhang JianxingNo1414710No2Sheng LeimingYes1414500No4Zhang HuaYes1414800No4Zhao ZhanboYes1414600No3Xia LijunYes99400No3Liu Chengyun(resigned)
No1414700No2Bai Yunxia(resigned)
Yes55300No1
ANNUAL REPORT2023
Explanations for personal absence from the meeting for two consecutive times?Applicable√ Not ApplicableTimes of the board meetings convened in current year14Including: times of on-site meetingsTimes of meetings convened through telecommunication4Times of meetings convened on-site and through telecommunication10
(II) Objections raised by directors on matters of the Company?Applicable√ Not Applicable(III) Others?Applicable√ Not ApplicableVII. Specialized committees under the Board of Directors√Applicable? Not Applicable(I) Members of specialized committees under the board of directorsCategory of specialized committeeMembers
Audit committeeXia Lijun, Zhao Zhanbo, Sheng Leiming, Zhang HuaNominating committeeYou Ruikai, Wang Cheng, Zhao Zhanbo, Sheng Leiming, Zhang HuaRemuneration and appraisal committeeZhao Zhanbo, Zhang Jianxing, Zhang Hua, Xia LijunStrategy committeeYou Ruikai, Ou Huisheng, Zhang Jianxing, Zhao Zhanbo, Xia Lijun(II) 8 meetings convened by the audit committee during the reporting periodConvening dateContentsImportant comments and suggestions
Other performanceof dutiesMarch 24, 2023
Reviewed the“Proposal on Reviewing the Full Text andSummary of 2022 Annual Report of the Company”and otherproposals
All proposals at this meeting wereunanimously reviewed and approved.April 25, 2023
Reviewed the“Proposal on Reviewing the 2023 First QuarterlyReport of the Company”
All proposals at this meeting wereunanimously reviewed and approved.May 24, 2023
Reviewed the“Proposal on the Company’s Issuance of AShares to Specic Targets Involving Related Transactions”andother proposals
All proposals at this meeting wereunanimously reviewed and approved.June 27, 2023
Reviewed the“Proposal on Reviewing the Company’s2022 Comprehensive Risk Management Report and 2023Signicant Risk Assessment Report” and other proposals
All proposals at this meeting wereunanimously reviewed and approved.August 25, 2023
Reviewed the“Proposal on Reviewing the Full Text andSummary of 2023 Semi-Annual Report of the Company”andother proposals
All proposals at this meeting wereunanimously reviewed and approved.September 20, 2023
Reviewed the“Proposal on Reviewing and Revising theImplementation Rules and List of Proceedings of the AuditCommittee of the Board of Directors”
All proposals at this meeting wereunanimously reviewed and approved.October 27, 2023
Reviewed the“Proposal on Reviewing the 2023 ThirdQuarterly Report of the Company”
All proposals at this meeting wereunanimously reviewed and approved.December 4, 2023
Reviewed the“Proposal on Reviewing the Provision ofGuarantee for a Korean Subsidiary” and other proposals
All proposals at this meeting wereunanimously reviewed and approved.
Section IV Corporate Governance(III) 5 meetings convened by the nominating committee during the reporting period
Convening dateContentsImportant comments and suggestions
Other performance
of duties
February 20, 2023
Reviewed the“Proposal on Reviewing the Appointment of Mr.Shan Jianguo as Chief Engineer” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedJune 5, 2023
Reviewed the“Proposal on Reviewing the Additional Electionof Independent Directors into the 8th Board of Directors”All proposals at this meeting wereunanimously reviewed and approvedJune 27, 2023
Reviewed the“Proposal on Reviewing the Formulation of theList of Proceedings of the Nomination Committee of the Boardof Directors”
All proposals at this meeting wereunanimously reviewed and approvedSeptember 20, 2023
Reviewed the“Proposal on Reviewing and Revising theImplementation Rules and List of Proceedings of theNomination Committee of the Board of Directors”
All proposals at this meeting wereunanimously reviewed and approvedOctober 4, 2023
Reviewed the“Proposal on Reviewing the Additional Electionof Mr. Rui Kai as a Director and the Election of Him as ViceChairman of the Company”
All proposals at this meeting wereunanimously reviewed and approved(IV) 6 meetings convened by the remuneration and appraisal committee during the reporting periodConvening dateContentsImportant comments and suggestions
Other performanceof duties
March 27, 2023
Reviewed the“Proposal on Reviewing the Remuneration ofDirectors of the Company for 2022” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedJune 27, 2023
Reviewed the“Proposal on Reviewing the Formulation ofthe List of Proceedings of the Remuneration and AppraisalCommittee of the Board of Directors” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedAugust 25, 2023
Reviewed the“Proposal on Reviewing the ResponsibilityAgreement for 2023 Annual Business Performance of theManagement Team and the Responsibility Agreement forBusiness Performance of the New Management Team duringIts Term 2022-2024” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedSeptember 20, 2023
Reviewed the“Proposal on Reviewing and Revising theImplementation Rules and List of Proceedings of theRemuneration and Appraisal Committee of the Board ofDirectors” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedDecember 4, 2023
Reviewed the“Proposal on Reviewing the Results ofAssessment on the 2022 Annual Business Performance of theManagement Team” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedDecember 21, 2023
Reviewed the“Proposal on Reviewing the Long-Term EquityIncentive Plan (Draft) of Shanghai Zhenhua Heavy IndustriesCo., Ltd. and Its Summary” and other proposals
All proposals at this meeting wereunanimously reviewed and approved(V) 7 meetings convened by the strategy committee during the reporting periodConvening dateContentsImportant comments and suggestions
Other performanceof dutiesMarch 27, 2023
Reviewed the“Proposal on Reviewing the Company's 2023Investment Plan”
All proposals at this meeting wereunanimously reviewed and approvedMay 24, 2023
Reviewed the“Proposal on the Company’s Compliance withthe Conditions for Issuing A Shares to Specific Targets”andother proposals
All proposals at this meeting wereunanimously reviewed and approvedJune 5, 2023
Reviewed the“Proposal on Reviewing the 2023 Plan forIssuing Asset-Backed Securities” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedJune 27, 2023
Reviewed the“Proposal on Reviewing the Disposal of EquityAssets at the Right Time” and other proposals
All proposals at this meeting wereunanimously reviewed and approved
ANNUAL REPORT2023
Convening dateContentsImportant comments and suggestions
Other performanceof dutiesSeptember 20, 2023
Reviewed the“Proposal on Reviewing the Intention of ZPMC’sWholly-Owned Subsidiary to Introduce Strategic Investors andEmployee Stock Ownership Platform to Increase Its Capital”
and other proposals
All proposals at this meeting wereunanimously reviewed and approvedNovember 10, 2023
Reviewed the“Proposal on Reviewing the Sale of Ship Assetsby Subsidiaries” and other proposals
All proposals at this meeting wereunanimously reviewed and approvedDecember 4, 2023
Reviewed the“Proposal on Reviewing the“Foreign Investmentfor the Establishment of a Joint Venture” and other proposals
All proposals at this meeting wereunanimously reviewed and approved(VI) Particulars about objections?Applicable√ Not ApplicableVIII. Description of the risks found by the board of supervisors?Applicable√ Not ApplicableThe board of supervisors has no objection to the supervision matters during the reporting period.
IX. Particulars about the employees in the parent company and the main subsidiaries at theend of the reporting period(I) Particulars about employees
Number of in-service employees of the parent company2,882Number of in-service employees of the main subsidiaries5,422Total of in-service employees8,304Number of retired employees required to be paid by the parent company and its major subsidiaries
FunctionsCategoryNumber of staProduction sta3,498Sales sta283Technical sta3,307Financial sta183Administrative sta1,033Total8,304
Education backgroundEducation levelNumber (person)
Master and above769Undergraduate4,532Junior College1,659Below Junior College1,344Total8,304
(II) Remuneration policies
√Applicable? Not ApplicableIn line with the Company’s development strategy, the Company improved the remuneration distribution incentive systemand performance assessment system and established and improved the performance assessment system based on thedierent properties and characteristics of each entity and division; promoted the salary incentive system closely linkingthe performance distribution with the unit or division performance, value contribution, industrial characteristics, growth
Section IV Corporate Governancephase and similar factors, and comprehensively linking the sta performance with position duty and value contribution,and thus initially established the distribution mode integrating with the market.(III) Training plan√Applicable? Not ApplicableIn line with the Company’s development strategy, the Company improved the staff training system. According tothe training plan, the Company implemented the training in a planned way to improve the business skill level andprofessional quality of sta at various levels.(IV) Labor outsourcing√Applicable? Not ApplicableTotal of labor outsourcing hours5,606,280 hoursTotal of labor outsourcing remunerationRMB 312,669,000X. Proposal for prot distribution or convention of capital reserves into bonus shares(I) Formulation, implementation or adjustment of cash dividend distribution policies√Applicable? Not ApplicableAccording to the requirements of the Circular on Further Implementation of Relevant Matters Concerning Cash DividendDistribution of Listed Companies (ZJF [2012] No. 37) issued by the CSRC, as proposed by the 10th meeting of theCompany’s 5th Board of Directors held on August 21, 2012, amendments were made to the Articles of Association of theCompany concerning prot distribution and cash dividends policy, and as a result, the dividend distribution standardand proportion became clearer, related decision making process and mechanism were complete, and the minorityshareholders’legal rights and interests were fully protected, giving them the opportunity to fully express their views anddemands. No adjustments were made to the cash dividend policy during the reporting period.On April 24, 2023, the Company held a performance briefing for 2022, at which the Company’s management fullycommunicated with investors on the prot distribution plan for 2022 through online interaction.On June 28, 2023, the 2022 Annual General Meeting of Shareholders of the Company considered and approved the protdistribution plan for 2022. The prot distribution plan for 2022 of the Company was as follows: no prot distribution wasmade, and no capital reserve was converted into share capital. Details of the above prot distribution matters are setout in the“Announcement of the Annual Prot Distribution Plan for 2022”published by the Company on the ShanghaiSecurities News and the website of the Shanghai Stock Exchange (www.sse.com.cn).As audited by Ernst & Young Hua Ming LLP, the Company achieved a net prot attributable to the owners of the parentcompany of approximately RMB 520 million in 2023. As at December 31, 2023, the undistributed profit of the parentcompany was approximately RMB 2.798 billion. To deliver a reasonable return to shareholders and strengthen theirinvestment condence, a prot distribution proposal for 2023 has been proposed based on the Company’s performancein 2023: prots will be distributed based on the total share capital registered on the record date for the implementationof the equity distribution, and a cash dividend of RMB 0.50 (tax included) per 10 shares would be distributed to allshareholders. As of December 31, 2023, the Company’s total share capital consisted of 5,268,353,501 shares.Whencalculated on this basis, the total cash dividend to be distributed will be RMB 263,417,675.05 (tax included). The Companywill not convert capital reserve into share capital, or grant bonus shares for 2023. The prot distribution proposal has yetto be submitted to the 2023 Annual General Meeting of Shareholders for consideration and approval.(II) Special statement on the cash dividend policy√Applicable? Not Applicable
ANNUAL REPORT2023
In compliance with the Company’s Articles of Association or the relevant resolutions of general meeting of shareholders√Yes? NoSpecic and clear dividend standards and ratios√Yes? NoComplete decision-making procedure and mechanism√Yes? NoIndependent directors have faithfully performed their duties and played their due role√Yes? NoNon-controlling shareholders are able to fully express their opinion and demand and their legal rights and interests are fully protected√Yes? No(III) If the prot is positive in the reporting period and the prot of the parent company available fordistribution to the shareholders is positive but the Company does not represent the plan or proposalfor prot distribution in cash, the Company shall disclose in detail the reasons and the purpose and useplan of the undistributed prot?Applicable√ Not Applicable(IV) Proposal for prot distribution and for converting capital reserve to share capital for the reportingperiod√Applicable? Not Applicable
Unit: Yuan Currency: CNYNumber of bonus shares per 10 shares (share)—Number of dividends per 10 shares (RMB) (taxes included)0.5Number of shares converted by capital reserve per 10 shares (share)—Amount of cash dividends (including tax)263,417,675.05Net prots attributable to common shareholders of the listed company in the annual consolidated statement of dividends519,978,765Ratio of net prots attributable to the listed company common shareholders in consolidated statements (%)50.66Amount of cash dividends from repurchase of shares—Total amount of cash dividends (tax included)263,417,675.05Ratio of the total amount of cash dividends to the net prots attributable to common shareholders of the listed companyin the consolidated statement (%)
50.66
XI. The Company’s equity incentive plan, employee stock ownership plan or other incentivesto the employees and their impacts(I) Related incentives disclosed in provisional announcement, without progress or change in follow-upimplementation√Applicable? Not Applicable
Summary of eventsQuery indexOn December 26, 2023, the Company held the 30th meeting of the 8th Board ofDirectors and the 17th meeting of the 8th Board of Supervisors. The meetingsreviewed and approved the“Proposal on Reviewing the Long-Term Equity IncentivePlan (Draft) of Shanghai Zhenhua Heavy Industries Co., Ltd. and Its Summary”,“Proposal on Reviewing the 2023 Stock Option Incentive Plan (Draft) of ShanghaiZhenhua Heavy Industries Co., Ltd. and Its Summary”,“Proposal on Reviewing theAssessment Management Measures for the Implementation of 2023 Stock OptionIncentive Plan of Shanghai Zhenhua Heavy Industries Co., Ltd.”,“Proposal onReviewing the Management Measures for the Implementation of 2023 Stock OptionIncentive Plan of Shanghai Zhenhua Heavy Industries Co., Ltd.”and other relatedproposals.
See the relevant announcements (Extraordinary AnnouncementNo. 2023-053, 2023-054, 2023-055 and 2023-056) disclosed by theCompany on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media onDecember 27, 2023 for details.According to the“Ocial Reply to the Implementation of the Stock Option IncentivePlan by Shanghai Zhenhua Heavy Industries Co., Ltd.”(GZKF [2024] No. 68) issuedby the State-owned Assets Supervision and Administration Commission of the StateCouncil”, the State-owned Assets Supervision and Administration Commission of theState Council agreed to the Company’s implementation of the stock option incentiveplan in principle.
See the relevant announcement (Extraordinary AnnouncementNo. 2024-004) disclosed by the Company on the website of theShanghai Stock Exchange (www.sse.com.cn) and designatedinformation disclosure media on March 23, 2024 for details.
Section IV Corporate Governance
Summary of eventsQuery indexOn March 28, 2024, the Company held the 32nd meeting of the 8th Board of Directorsand the 18th meeting of the 8th Board of Supervisors. The meetings reviewed andapproved the“Proposal on Reviewing the Long-Term Equity Incentive Plan (RevisedDraft) of Shanghai Zhenhua Heavy Industries Co., Ltd. and Its Summary”.
See the relevant announcements (Extraordinary AnnouncementNo. 2024-006, 2024-007, 2024-011 and 2024-012) disclosed by theCompany on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media onMarch 29, 2024 for details.(II) Incentives not disclosed in provisional announcement or with follow-up progressEquity incentives?Applicable√ Not ApplicableOther description?Applicable√ Not ApplicableInformation about employee stock ownership plan?Applicable√ Not ApplicableOther incentives?Applicable√ Not Applicable(III) Equity incentives awarded to the directors and senior executives during the reporting period?Applicable√ Not Applicable(IV) Establishment and implementation of the assessment mechanism and incentive mechanism forsenior executives during the reporting period√Applicable? Not ApplicableThe Company appoints the directors, supervisors and senior executives in accordance with the provisions of CompanyLaw and the Articles of Association, has built up a preliminary cultivation, selection, supervision, assessment, rewardand punishment, constraint system for the Company’s senior executives suitable for the actual situation. The Companyformulated corresponding administrative methods for senior executives. According to the production and developmentneed of the Company, the senior executives are appointed, resigned and assessed following the principles of“being fromtop to bottom integrating the virtue and talent”, and are subject to annual appraisal by the Company according to thedue diligence and job performance. The Company will gradually improve the existing performance evaluation systemand salary system, and promote medium and long-term incentive system for all senior executives and the core technicalpersonnel of the Company, to continue to stimulate the enthusiasm of the senior executives, to create new achievements,and to ensure the benet maximization and standard operation of the Company.XII. Development and implementation of internal control systems during the reportingperiod
√Applicable? Not ApplicableThe Company actively promoted the continuous improvement of internal control management system in ve aspectsincluding internal environment, risk management, major control activities, information and communication, and internalsupervision and evaluation. In the meanwhile, through internal self-inspection, daily and special supervision, and internalcontrol evaluation, the Company ensured the eective implementation of relevant management requirements, smoothcommunication of feedback information, and timely rectication of defects.According to the, the Company integrated the business systems and the management ow into the control requirementsof the internal control system, and established the internal control, risk and compliance management systems such as“Management Measures for the Construction and Supervision of the Internal Control System”,“Implementation Rules forInternal Control Management Audit”,“Regulations on Comprehensive Risk Management”,“Regulations on Compliance
ANNUAL REPORT2023
Management”and“Regulations on the Management of Signicant Business Risk Reporting”, and formulated a power andresponsibility manual to make clear the control nodes and approval ow of various operation and management matters,and improved the beforehand, intermediate and afterwards risk control mechanisms and established a strict internalcontrol system.The Company continuously carried out annual internal control evaluation and internal control audit, and the annualreport on internal control evaluation was submitted to the Board of Directors for discussion. In accordance with theBasic Standard for Enterprise Internal Control and its supporting guidelines, the Company, in combination with its ownstructure and characteristics, comprehensively evaluated the reasonableness and operational eectiveness of the internalcontrol design over the internal environment, risk assessment, control activities, information and communication, internalsupervision and other elements of the Company, found out the potential deficiencies or defects at all levels, furtherstrengthened and standardized the construction of the Company's internal control and improved the managementquality and the risk prevention capability. Meanwhile, the Company entrusted an external professional audit firm toconduct the internal control audit every year. Through the external audit, according to the requirements on internalcontrol, the risks were eectively identied, evaluated, controlled, monitored and improved to organically integrate riskmanagement, internal control and daily operation activities, and eectively control and prevent various risks to ensurethe sustainable and stable development of the Company.Description of the important deciencies in internal control during the reporting period?Applicable√ Not ApplicableXIII. Management and control over the subsidiaries during the reporting period√Applicable? Not ApplicableIn accordance with the provisions of the Company Law, the Articles of Association and other relevant laws, regulationsand rules, the Company continued to strengthen the management and supervision of its subsidiaries on standardizedoperation, information disclosure, nancial capital and operation, and timely track the nancial status of subsidiaries andother signicant matters to ensure legal compliance of operation and management, assets safety, truthful and completefinancial reports and related information, and to further enhance the operation management and risk managementcapability of the subsidiaries.XIV. Particulars about the audit report on internal control√Applicable? Not ApplicableErnst & Young Hua Ming LLP, engaged by the Company, had audited the effectiveness of the internal control of thenancial statement as of December 31, 2023 and issued a standard internal control audit report with unqualied opinions(see the announcement published on the website of Shanghai Stock Exchange on the same day as this report for details).Audit report on internal control disclosed or not: YesOpinion type of internal control audit report: standard with clean opinionXV. Remediation of problems identied by self-inspection in the special action on thegovernance of listed companies
None
XVI. Others
?Applicable√ Not Applicable
Section V Environmental and Social Responsibility
Section V Environmental and Social Responsibility
I. Environmental InformationEstablishment of environmental protection-related mechanismsYesFunds invested into environmental protection during the Reporting Period (Unit: 10,000 Yuan)11,856.90
(I) Information about environmental protection of the Company and its subsidiaries as the key pollutantdischarge units published by environmental protection department√Applicable? Not Applicable
1. Emission information
√Applicable? Not ApplicableDuring the reporting period, the total permitted amount of main pollutants in waste gas of the Company and its majorsubsidiaries: 0.783 tons of sulfur dioxide, 2.399 tons of nitrogen oxides, 63.792 tons of particulate matter, and 328.182tons of VOCs per year; no permitted emission limit was indicated for some pollutants on the pollutant emission permit ofsome entities; the actual emissions in 2023 were 8.947 tons of sulfur dioxide, 44.088 tons of nitrogen oxides, 39.701 tonsof particulate matter and 194.116 tons of VOCs. Total permitted amount of main pollutants in wastewater: 609.484 tonsof COD, 63.506 tons of ammonia nitrogen, 1.468 tons of total phosphorus and 135.557 tons of total nitrogen per year; nopermitted emission limit was indicated for some pollutants on the pollutant emission permit of some entities; the actualemissions in 2023 were 291.9 tons of COD, 43.703 tons of ammonia nitrogen, 0.384 tons of total phosphorus and 59.522tons of total nitrogen. According to the table below, all indicators were in line with the permitted emission limit indicatedon the pollutant emission permit.According to the supervision monitoring by environmental protection department and the self-monitoring of theenterprise, all kinds of pollutants discharged by the Company meet the corresponding emission limits specied in thenational“Integrated Emission Standard of Air Pollutants”(GB16297-1996),“Emission Standards for Odor Pollutants”
(GB14554-1993),“Standard for Fugitive Emission of Volatile Organic Compounds”(GB37822-2019),“Emission Standardof Cooking Fume”(GB18483-2001),“Integrated Wastewater Discharge Standard”(GB8978-1996), Wastewater QualityStandards for Discharge to Municipal Sewers (GB/T31962-2015),“Emission Standard for Industrial Enterprises Noise atBoundary”(GB12348- 2008),“Emission Standards of Pollutants for Shipbuilding Industry”(DB31/934-2015) of ShanghaiCity,“Integrated Emission Standard of Air Pollutants”(DB31/933-2015) of Shanghai City,“Emission Standards forOdor Pollutants”(DB3/1025-2016) of Shanghai City,“Emission Standard of Air Pollutants for Boiler”(DB31/387-2018)of Shanghai City,“Emission Standard of Catering Fume”of Shanghai City (DB 31/844-2014),“Integrated WastewaterDischarge Standard”(DB31/199-2018) of Shanghai City,“Integrated Emission Standard of Air Pollutants” (DB32 4041-2021) of Jiangsu Province,“Emission Standard of Air Pollutants for Surface Coating of Engineering Machinery and SteelStructure Manufacturing Industry”(DB32/4147-2021) of Jiangsu Province,“Emission Standard of Air Pollutants forIndustrial Surface Coating”(DB32/4439-2022) of Jiangsu Province and“Emission Standard of Air Pollutants for IndustrialFurnace and Kiln” (DB32/3728-2020) of Jiangsu Province.For details of the pollutant emissions of the Company and major subsidiaries, see the table below.
ANNUAL REPORT2023Name of thecompany orsubsidiary
Name of mainpollutant andcharacteristicpollutant
EmissionmodeNumberof outlets
Distributionof outlets
Emissionconcentration
Applicable pollutant emission standards
Totalemissionsin 2023(ton)
Permittedemissionsin 2023(emissionpermit) (ton)
Over-standardemissions
in 2023
ShanghaiZhenhuaHeavyIndustries Co.,Ltd. ChangxingBranch
SO
Organizedemission
55 (3 outof service)
Pretreatment,sand washing,coating andcanteen
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015) of Shanghai City, EmissionStandards of Pollutants for Shipbuilding Industry(DB31/934-2015), Emission Standards for OdorPollutants (DB31/1025-2016), Emission Standard ofCooking Fume (DB31-844-2014), and Standard forFugitive Emission of Volatile Organic Compounds(GB37822-2019)
00.066None
NOx01.046NoneParticulate
matter
12.58316.1026None
VOCs151.385174.047None
COD
Wastewater
outlet
Integrated Wastewater Discharge Standard(DB31/199-2018) of Shanghai City
221.366338.59None
Ammonianitrogen
31.86637.16None
Total nitrogen52.541121.79NoneShanghaiZhenhua PortMachineryHeavyIndustries Co.,Ltd.
SO
Organizedemission
Sandwashing,coating and
canteen
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015), Emission Standards for OdorPollutants (DB31/1025-2016) and EmissionStandard of Air Pollutants for Boiler (DB31/387-2018) of Shanghai City, and Standard for FugitiveEmission of Volatile Organic Compounds(GB37822-2019)
00.0183None
NOx0.2640.5727NoneParticulate
matter
2.94415.9682None
VOCs20.11858.631NoneShanghaiZhenhuaHeavyIndustries PortMachineryGeneralEquipment Co.,Ltd.
Particulate
matter
Organizedemission
9 (2 out ofservice)
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015) of Shanghai City, EmissionStandards for Odor Pollutants (DB31/1025-2016),Emission Standard of Cooking Fume (DB31-844-2014), and Standard for Fugitive Emission ofVolatile Organic Compounds (GB37822-2019)
2.72730.14None
VOCs7.9845.56None
/1
Domesticsewage outlet
Integrated Wastewater Discharge Standard(DB31/199-2018) of Shanghai City
/Domestic
sewagedischargedthrough pipesis not subjectto a permitted
dischargeamount and isnot monitored
/
ShanghaiZhenhuaHeavyIndustries Co.,Ltd. NantongBranch
Particulate
matter
Organizedemission
Sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(GB 16297-1996), Integrated Emission Standardof Air Pollutants (DB32 4041-2021) and EmissionStandard of Air Pollutants for Surface Coatingof Engineering Machinery and Steel StructureManufacturing Industry (DB32/4147-2021) ofJiangsu Province
5.2225-None
VOCs4.376325.92NoneCOD
Wastewater
outlet
Integrated Wastewater Discharge Standard(GB8978- 1996), Wastewater Quality Standards forDischarge to Municipal Sewers (GB/T31962-2015)
19.3926139.3640None
Ammonia4.334917.496None
NantongZhenhuaHeavyEquipmentManufacturingCo., Ltd.
SO
Organizedemission
Pretreatment,sand washing,
coating,hazardous
wastewarehouseand canteenMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996), Integrated Emission Standard of AirPollutants (DB32 4041-2021), Emission Standard ofAir Pollutants for Surface Coating of EngineeringMachinery and Steel Structure ManufacturingIndustry (DB32/4147-2021) and Emission Standardof Air Pollutants for Industrial Furnace and Kiln(DB32/3728-2020) of Jiangsu Province, EmissionStandards for Odor Pollutants (GB14544-1993),Emission Standard of Cooking Fume (GB18483-2001)
8.87533*-None
NOx43.57568*-NoneParticulate
matter
13.63264-None
VOCs2.4779916.125None
COD
Wastewater
outlet
Integrated Wastewater Discharge Standard(GB8978- 1996), Wastewater Quality Standards forDischarge to Municipal Sewers (GB/T31962-2015)
12.07874131.5304None
Ammonia3.893738.85None
Totalphosphorus
0.384111.468None
Total nitrogen6.9809413.767NoneZPMCTransmissionMachinery(Nantong) Co.,Ltd.
SO
Organizedemission
Heattreatment,sand washingand coatingMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants(GB16297-1996), Emission Standard of AirPollutants for Boiler (GB13271-2014), IntegratedEmission Standard of Air Pollutants (DB32 4041-2021) of Jiangsu Province, Emission Standardsfor Odor Pollutants (GB14554-1993), EmissionStandard of Air Pollutants for Industrial SurfaceCoating (DB32/4439-2022) of Jiangsu Province
0.0649-None
NOx0.2068-NoneParticulate
matter
0.5946-None
VOCs4.505.3None
COD
Domesticsewage outlet
Integrated Wastewater Discharge Standard(GB8978- 1996), Wastewater Quality Standards forDischarge to Municipal Sewers (GB/T31962-2015)
Notdetected
-NoneAmmonia
Notdetected
-None
Section V Environmental and Social Responsibility
Name of thecompany orsubsidiary
Name of mainpollutant andcharacteristic
pollutant
Emission
mode
Numberof outlets
Distribution
of outlets
Emissionconcentration
Applicable pollutant emission standards
Totalemissions
in 2023
(ton)
Permittedemissionsin 2023(emissionpermit) (ton)
Over-standardemissionsin 2023ZPMC QidongMarineEngineeringCo., Ltd.
SO
Organizedemission
Pretreatment,sand washingand coatingMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants(GB 16297-1996), Emission Standards for OdorPollutants (GB14554-1993), Integrated EmissionStandard of Air Pollutants (DB32 4041-2021)of Jiangsu Province, Emission Standard of AirPollutants for Boiler (GB13271-2014)
0-NoneNOx0-NoneParticulatematter
0.86-None
VOCs1.09-NoneCOD
Domesticsewage outlet
Integrated Wastewater Discharge Standard(GB8978- 1996), Wastewater Quality Standards forDischarge to Municipal Sewers (GB/T31962-2015)
7.35-None
Ammonia0.32-NoneShanghai PortMachineryHeavy IndustryCo., Ltd.
SO
Organizedemission
Sand washingand coatingMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015), Emission Standards for OdorPollutants (DB31/1025-2016), and EmissionStandard of Air Pollutants for Boiler (DB31/387-2018) of Shanghai City
0.006920.698270None
NOx0.041110.780500None
Particulatematter
1.13761.581650None
VOCs2.1888**2.59866NoneCOD
Wastewateroutlet
Integrated Wastewater Discharge Standard(DB31/199-2018)
31.713-None
Ammonia3.288-NoneNote: 1. - in the table indicates that no permitted emission limit was inciated for this indicator on the pollutant emission permit of the enterprise.
2. If the total emissions were 0 in the table, it indicates that the pollutant was not detected.
3. *Due to deviations in the detection methods, the sulfur dioxide and nitrogen oxide data of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.
were not detected in the second half of 2023. Therefore, the yearly data for 2023 are the same the data in the rst half of the year.
4.**When calculating VOC emissions, Shanghai Port Machinery Heavy Industry Co., Ltd. corrected the calculation error in the rst half of 2023. The VOC
emissions in the rst half of 2023 were calculated based on the daily RTO + total start-up time (14 hours) of zeolite rollers, covering the preheating andstandby time (the workshop was actually not operating). When calculating emissions at the end of 2023, the calculation was adjusted according to theactual exhaust gas treatment time. Therefore, the yearly data for 2023 is only slightly higher than the data in the rst half of the year.
2. Construction and operation of pollution control facilities
√Applicable? Not ApplicableBy thoroughly implementing the thoughts of Xi Jinping on ecological civilization, the Company and its subsidiaries,guided by the national laws and regulations on environmental protection and the requirements on the industrial policy,continued to carry out environmental protection compliance improvement activities, improved the environmentalprotection system incorporating the“Regulations on Ecological and Environmental Protection Responsibility System”,guided the employees to give full play to their subjective initiative and strengthened supervision to ensure that thecontrol objectives were compliant and under control. During the reporting period, the Company and its subsidiariesstrengthened the comprehensive management of waste gas, waste water, noise and hazardous waste, and variouspollution prevention and control facilities functioned normally. In 2023, ZPMC Qidong Marine Engineering Co., Ltd., asubsidiary of the Company completed the renovation of its hazardous waste warehouse, and completed and put intouse the paint warehouse project; Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. upgraded the waste gastreatment facilities of its hazardous waste warehouse from activated carbon + photocatalytic oxidation to lter bag +activated carbon + CO treatment process; the first phase of the technological transformation project for automatedpainting production line of Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd. was accepted in October 2023,and the second phase of the project is expected to be completed and accepted in October 2024.
3. Environmental impact assessment (EIA) of construction project and other administrative licenses for
environmental protection
√Applicable? Not ApplicableThe Company strictly implemented the relevant management regulations of“Three Simultaneities”for environmentalprotection of national and local construction projects in all new, reconstruction and expansion projects, and had gonethrough the procedures of environmental impact assessment and completion acceptance for the projects. During thereporting period, some subsidiaries had no new, reconstruction or expansion projects. However, new progress was madein the construction projects of the some entities, as shown in the table below.
ANNUAL REPORT2023Name of the company or subsidiaryKey projects in 2023EIA approval / acceptanceShanghai Zhenhua Heavy Industries Co., Ltd.
ZPMC Changxing intelligent port equipmentindustry project
Obtained the EIA approvalShanghai Zhenhua Heavy Industries PortMachinery General Equipment Co., Ltd.
Paint warehouse reconstruction project ofShanghai Zhenhua Heavy Industries PortMachinery General Equipment Co., Ltd.
Obtained the EIA approval (not yet put into production,
and procedures for major changes in the environmental
impact assessment report being handled)Shanghai Zhenhua Heavy Industries Co., Ltd.Nantong Branch
Newly contrustructed Class A warehouseand self-use diesel supply center supportingproject of Nantong Zhenhua Heavy EquipmentManufacturing Co., Ltd.
Acceptance completedShanghai Zhenhua Port Machinery HeavyIndustries Co., Ltd.
Technical improvement project of paintingautomatic production line
Accepted the rst phase of the project was accepted,
and the second phase of the project expected to be
accepted in October 2024ZPMC Transmission Machinery (Nantong)Co., Ltd.
Technological transformation project forprocessing and production of core parts ofthe lifting system for wind power installationplatforms
Environmental impact assessment being publicized
According to the“Regulations on the Administration of Pollutant Emission Permit”, the“Measures for the Administrationof Pollutant Emission Permit (Trial)”and other national requirements, the Company and its subsidiaries applied forpollutant emission permits and applied for the change of pollutant emission permits according to the actual dischargechanges, and obtained the“Pollutant Emission Permit”issued by local ecological and environmental protectiondepartment. In strict accordance with the requirements of emission permit, the Company continued to dischargepollutant as permitted, carried out self-monitoring, established accounts, reported regularly and made informationpublic.
4. Emergency proposal for environmental incidents
√Applicable? Not ApplicableIn order to prevent the occurrence of sudden environmental pollution incidents and to control and deal with themquickly and effectively after the occurrence, the Company complied with the“Environmental Protection Law of thePeople’s Republic of China”,“Law of the People’s Republic of China on the Prevention and Control of Water Pollution”,“Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution”,“Law of the People'sRepublic of China on the Prevention and Control of Solid Waste Pollution”,“Measures for the Administration of Recordingthe Emergency Plan for Emergent Environmental Events of Enterprises and Institutions (Trial)”,“Guidelines for theCompilation of Risk Assessment Report on Environmental Emergencies in Enterprises (Trial)”, and its branches andsubsidiaries, based on the assessment of existing environmental risks, prepared their emergency plans, led them withthe local ecological and environmental protection department, and actively carried out emergency drills to furtherprevent and eectively respond to unexpected environmental pollution incidents.During the reporting period, Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd., a subsidiary of the Company,completed the revision and filing of the emergency plan for unexpected environmental incidents in August 2023;Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch completed the re-ling of the emergency plan ling formin December 2023.
5. Environmental self-monitoring plan
√Applicable? Not ApplicableAll subordinate units of the Company installed online monitoring equipment for exhaust gas VOCs and wastewateras required and networked them with the ecological and environmental authorities, and carried out regular self-monitoring of environmental protection in accordance with the requirements of the pollutant emission permits andtechnical guidelines for self-monitoring of pollutant discharging units. All units released self-monitoring information oninformation disclosure platforms such as National Pollution Source Monitoring Information Management and SharingPlatform, Shanghai Integrated Pollution Source Management Information System, Shanghai Environmental Information
Section V Environmental and Social Responsibility
Disclosure Platform for Enterprises and Institutions and Jiangsu Pollutant Discharging Unit Self-monitoring InformationRelease Platform as required. All branches and subsidiaries of the Company carefully carried out self-monitoring inaccordance with national and local requirements, and timely, complete and truthfully released self-monitoring data andrelated information.
6. Administrative penalties imposed for environmental issues during the reporting period
√Applicable? Not ApplicableDuring the reporting period, the Company’s pollutant discharging units did not receive any administrative penalties forenvironmental protection.
7. Other environmental information to be disclosed
√Applicable? Not ApplicableThe Company’s subsidiaries, Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, Shanghai Zhenhua PortMachinery Heavy Industries Co., Ltd., Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch and NantongZhenhua Heavy Equipment Manufacturing Co., Ltd., were included in the list of key enterprises subject to mandatorycleaner production audits. Up to now, Changxing Branch completed the acceptance of cleaner production audit at theend of September 2023; Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd. passed the evaluation of cleanerproduction audit in November 2023, the acceptance of which is expected to be completed by the end of November 2024;Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch and Nantong Zhenhua Heavy Equipment ManufacturingCo., Ltd. got approved by the Ecology and Environment Bureau of Nantong Economic and Technological DevelopmentZone in 2023 and completed the acceptance of clean production audit.(II) Environmental protection of companies other than key emission units√Applicable? Not Applicable
1. Administrative penalties imposed for environmental issues
√Applicable? Not ApplicableDuring the reporting period, the Company’s pollutant discharging units did not receive any administrative penalties forenvironmental protection.
2. Other environmental information disclosed with reference to key emission units
√Applicable? Not ApplicableThe Company’s subsidiary ZPMC Zhangjiagang Port Machinery Co., Ltd. completed the waste gas treatment projectfor hazardous waste warehouse at the end of 2023, where the waste gas from the hazardous waste warehouse wasdischarged through the exhaust pipe after treatment with activated carbon, and is going through the procedures forthe change of its pollution emission permit. ZPMC Zhangjiagang Port Machinery Co., Ltd. had 4 waste gas outlets and 1wastewater outlet, and the main pollutants were: wastewater (COD, ammonia nitrogen), waste gas (particles, VOCs), solidwaste, noise, etc. Discharge method: the wastewater was discharged to the sewage treatment plant through pipes; theatmospheric pollutants such as the particulate matter and VOCs in waste gas were discharged in a well-organized mannerafter treatment; the solid wastes and hazardous wastes were handed over to the qualied entities for treatment; plantboundary noise was discharged up to the standard. During the reporting period, ZPMC Zhangjiagang Port Machinery Co.,Ltd. discharged 1.671 tons of particulate matter and 4.235 tons of VOCs.
3. Reasons for not disclosing other environmental information
?Applicable√ Not Applicable
ANNUAL REPORT2023(III) Information that is conducive to ecological protection, pollution prevention and environmentalresponsibility performance√Applicable? Not ApplicableIn 2023, the Company actively fulfilled its social responsibilities and was committed to promoting sustainabledevelopment, and released the“2022 Environmental, Social and Corporate Governance (ESG) Report”, which fullyelaborated on the its remarkable results in environmental protection, social responsibilities and corporate governance inthe past year, and actively responded to the expectations and demands of various stakeholders.(IV) Measures taken to reduce carbon emissions during the reporting period and their eectsCarbon reduction measures taken or notYesCarbon dioxide equivalent emissions reduced (in tons)2,263Types of carbon reduction measures (e.g., using clean energy, for power generation,using carbon reduction technologies in the production process, developing andproducing new products that contribute to carbon reduction, etc.)
Using clean energy for power generation, using carbon reduction
technologies in the production processSpecic description√Applicable? Not ApplicableShanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch installed and constructed a centralized control system forthe air compression station at Pier No. 1, which can collect the operating data such as the power consumption and gasproduction of each air compressor in real time. The start-stop priority level can be set through the joint control programbased on the on-site gas consumption, allowing the machines with high loading efficiency to run more. At the sametime, an unloading standby time limit can be set; the program is set to shut down and cut o the power as long as theair compressor unloading time reaches 180s, which minimizes the unloading time and saves energy consumption. Theenergy consumption per unit of gas production has dropped by about 30%, resulting in annual saving of 410 tons ofstandard coal, equivalent to a reduction of 1,066 tons of carbon dioxide emissions.The 6MW PV project of ZPMC Qidong Marine Engineering Co., Ltd. passed the inspection of the State Grid’s acceptanceexpert team in August 2023 and was successfully connected to the grid for power generation. The total installed capacityof the PV system in the project is 6 MW. As of December 2023, the cumulative power generation was approximately
2.1 million kWh, saving approximately 599 tons of standard coal and reducing carbon dioxide emissions by 1,197 tons,
showing good social, environmental and economic benets.II. Fulllment of social responsibility
(I) Separate disclosure of social responsibility report, sustainability report or ESG report
√Applicable? Not ApplicableFor detailed report, please refer to the“2023 Environmental, Social, and Corporate Governance (ESG) Report of ShanghaiZhenhua Heavy Industries Co., Ltd.” disclosed on the same day as this report.
(II) Particulars about social responsibility work
√Applicable? Not Applicable
External donations and public
welfare programs
Amount/contentDescription
Total investment (’0,000 Yuan)84.5064Directly provide free donations for nancial support to targeted assistance areas.Including: fund (’0,000 Yuan)84.5064Amount equivalent to goods andmaterials (’0,000 Yuan)
Section V Environmental and Social Responsibility
External donations and publicwelfare programs
Amount/contentDescriptionNumber of people beneted (person)10,681
This gure is obtained based on direct beneciaries of all donations, including educationassistance (schools), revitalization through organizations (communities), employmentassistance (labor transfer) and talent training, and is an estimated figure. The number ofpeople beneting from projects such as consumption assistance and“aiding Xinjiang withwork clothes” cannot be directly counted.Specic description√Applicable? Not ApplicableIn 2023, ZPMC earnestly further promoted its social responsibility work and fully achieved its responsibility goals throughreasonable arrangement and effectively implementation. The Company invested a total of RMB 845,064 in externaldonations and public welfare programs to consolidate and expand the results of poverty alleviation in targeted assistanceareas and continuously promote rural revitalization. ZPMC, in response to the group’s overall planning, invested RMB300,000 to help build a new teaching complex for Shangpa Middle School in Fugong County; invested RMB 200,000 toincrease the principal of the Special Education Development Fund in Lanping County; donated RMB 43,700 to ShidengTownship Middle School to purchase water purifiers to solve students’difficulty in getting drinking water difficulties;donated RMB 110,000 to Shigudian Kindergarten in Yongxing Community to purchase indoor full-color LED displayscreens to improve the office conditions of relocated kindergartens; invested RMB 126,300 in talent training for theOrganization Department of the Lanping County Party Committee; invested RMB 20,000 to improve the Party buildingcapabilities of Yong’an Community; and donated RMB 45,064 to assist in the purchase of materials.In 2023, the“Blue Vest” Youth Volunteer Service Team of the Company’s Youth League Committee held a“Learning fromLei Feng”Charity Sale Campaign with the theme of“Expressing Thanks, Aiding Students in Learning and Dream Pursuit”.More than 200 pieces of supplies were received from the Company’s second-level youth league organizations in thecampaign, including books, children’s picture books, stationery, office and living necessities and toys. A total of RMB13,310 was raised through the Charity Sale Campaign, which was donated to the“ZPMC Fund for Aid to Learning andDream Pursuit”to build a“Love Library” in a poverty-stricken primary school in Tu’e Township, Lanping County, NujiangCity, Yunnan Province.III. Specic work on consolidating and expanding the progress in poverty alleviation andrural revitalization√Applicable? Not ApplicableItem of poverty alleviation and rural
revitalization
Amount/contentDescriptionTotal investment (’0,000 Yuan)182.6725
Include direct investment into gratuitous assistance funds, introduction ofassistance funds, purchase and sale of agricultural products and ordering ofwork clothes from targeted assistance areas, etc.Including: fund (’0,000 Yuan)84.5064Directly provide nancial support to targeted assistance areas.Amount equivalent to goods andmaterials (’0,000 Yuan)
98.1661
Include purchase and sale of agricultural products in targeted assistanceareas, ordering of work clothes and donations from charity sales.Number of people beneted (person)10,681
This figure is obtained based on direct beneficiaries of all donations,including education assistance (schools), revitalization through organizations(communities), employment assistance (labor transfer) and talent training,and is an estimated gure. The number of people beneting from projectssuch as consumption assistance and“aiding Xinjiang with work clothes”
cannot be directly counted.Forms of assistance (such as developmentof local industry, creating jobopportunities, improving education)
Investigation and guidance,capital investment, talentsand employment support,boosting the consumptionof products from poor areas,Party building pairing
The Company conducted on-site survey, held special work meetings on
targeted assistance, invested funds, helped create job opportunities, trained
grassroots cadres and rural revitalization leaders, paried with the Yong’an
Community Party Committee, purchased and sold agricultural products and
customized work clothes from targeted assistance areas, etc.
ANNUAL REPORT2023
Specic description√Applicable? Not ApplicableIn 2023, the Company fully implemented the decisions and arrangements of the Party Central Committee onconsolidating the results of poverty alleviation and continuing to promote rural revitalization, and eectively put in placethe annual work arrangements for targeted assistance. The Company offered targeted assistance to Lanping County,Yunnan Province, and advanced assistance work such as“education improvement”,“revitalization through talentsdevelopment”,“revitalization through organizations”and“industry revitalization”. On September 18, 2023, the Companyvisited Lanping County, Nujiang Prefecture, Yunnan Province to investigate the targeted assistance work. On September19, 2023, the Company visited Yongxing Community and Yong’an Community in Lanping County for investigation.Furthermore, the Company trained 10 grassroots cadres for Lanping County and 1 rural revitalization leader. ChangxingBranch of the Company helped created 215 jobs in the assistance areas throughout the year, who achieved stableemployment in various positions.
Section VI Important Events
Section VI Important Events
I. Fulllment of commitments(I) Commitments of the Company’s actual controller, shareholders, related parties and acquirer, as wellas the Company during the reporting period or ongoing at the period-end
√Applicable? Not ApplicableCommitmentbackground
CommitmentType
Commitmentparty
Commitment Content
CommitmenttimeIs there anytime limit forcommitmentperformance
Commitmentterm
It thecommitmentcompletedin time
Describespecicreasons forfailure ofcommitmentperformance
Describefurther plansin case offailure ofcommitmentperformance
Commitmentsrelated torenancing
Others
Companydirectors andsenior executives
Commitments on ensuring eective implementation of themeasures to compensate for diluted immediate return afterthe Company’s issuance of A shares to specic targets: 1. Iundertake that I will not transfer benets to other units orindividuals at nil consideration or on unfair terms, and willnot harm the Company’s interests in any other manner;
2. I undertake that I will act to restrain own duty-related
spending; 3. I undertake that I will not utilize the assets ofthe Company for any investment or consumption irrelevantwith the performance of my duties; 4. I undertake that I willprocure the remuneration system developed by the Boardof Directors or the Remuneration Committee to be linkedwith the implementation of the measures of the Companyto compensate for returns within the scope of my ownduties and authorities; 5. If the Company is to adopt anequity incentive plan in the future, I undertake that I will usemy best efforts to procure the exercise conditions for theequity incentive plan to be linked with the implementationof the measures of the Company to compensate for returnswithin the scope of my own duties and authorities; 6. Fromthe date when the commitment is made to the completionof the Company’s issuance of A shares to specic targets, Iundertake that supplementary undertakings will be givenin accordance with new regulations announced by the CSRCand SSE concerning measures to compensate for returnsand related undertakings in due course, if such regulationsare announced by the CSRC and SSE and the foregoingundertakings cannot comply with such regulations. 7. Iundertake that I will earnestly implement the measuresof the Company concerning compensation for returnsand my commitments thereon, and if any loss is incurredto the Company or investors due to my violation of suchcommitment, I am willing to be liable for compensation tothe Company or investors in accordance with the law.
May 25, 2023No
Long-termeective
YesN/AN/A
Commitmentsrelated torenancing
Others
Controllingshareholder:
ChinaCommunicationsConstructionGroup Co., Ltd.
1. We will not act beyond our powers to interfere with the
Company’s operating and management activities or infringeupon the interests of listed companies in strict accordancewith relevant laws and regulations and the provisions of theCSRC and SSE; 2. From the date when the commitment ismade to the completion of the issuance of A shares to specictargets, we undertake that supplementary undertakings willbe given in accordance with new regulations announcedby the CSRC and SSE concerning measures to compensatefor returns and related undertakings in due course, ifsuch regulations are announced by the CSRC and SSEand the foregoing undertakings cannot comply withsuch regulations. 3. We undertake that we will earnestlyimplement the measures of the Company concerningcompensation for returns and my commitments thereon, andif any loss is incurred to the Company or investors due to myviolation of such commitment, we are willing to be liable forcompensation to the Company or investors in accordancewith the law.
May 25, 2023No
Long-termeective
YesN/AN/A
ANNUAL REPORT2023
Commitmentbackground
CommitmentType
Commitment
party
Commitment Content
CommitmenttimeIs there anytime limit forcommitmentperformance
Commitment
term
It thecommitmentcompletedin time
Describespecicreasons forfailure ofcommitmentperformance
Describefurther plansin case offailure ofcommitmentperformanceCommitmentsrelatedto equityincentives
OthersCompany
No loans, loan guarantees or any other form of financialsupport will be provided to the incentive objects for theexercise of stock options granted under this incentive plan.
December 26,2023
YesTerminattiondate ofincentive plan
YesN/AN/AOthersIncentive object
If the Company has false records, misleading statements ormajor omissions in the information disclosure documents,resulting in non-compliance with the grant of equity or theexercise of equity arrangements, the incentive objects shallreturn all the benets obtained from this incentive plan tothe Company after false records, misleading statements ormajor omissions in the information disclosure documents areconrmed.
December 26,
2023
Yes
Terminattion
date ofincentive plan
YesN/AN/A
(II) If there is earnings forecast for the assets or projects of the Company and the reporting period isstill in the earnings forecast period, the Company shall explain whether the asset or project reaches theoriginal earnings forecast and give the reasons?Reached?Not reached√ Not applicable
(III) Fulllment of commitments on the performance and its impacts on goodwill impairment test
?Applicable√ Not Applicable
II. Non-operating funds occupied by the holding shareholder and other related parties duringthe reporting period?Applicable√ Not Applicable
III. Irregularities in the provision of guarantees
?Applicable√ Not Applicable
IV. Explanation of the board of directors for Accounting Firm’s“auditors’report withnonstandard opinions”
?Applicable√ Not Applicable
V. Analysis and explanation of the Company of the causes and the impacts of the majorchanges in accounting policies and accounting estimates or correction of signicantaccounting errors(I) Analysis and explanation of the Company on the causes and the impacts of the changes in accountingpolicies and accounting estimates
?Applicable√ Not Applicable
(II) Analysis and explanation of the cause of correction of signicant accounting errors and their impactsby the Company
?Applicable√ Not Applicable
(III) Communication with former CPA rm
?Applicable√ Not Applicable
Section VI Important Events(IV) Approval procedures and other explanations
?Applicable√ Not Applicable
VI. Engagement and dismissal of the public accounting rm
Unit: Yuan Currency: CNY
Now engagingName of the domestic accounting rmErnst & Young Hua Ming LLPRemuneration of the domestic accounting rm4,850,000Audit term of the domestic accounting rm8Name of Certied Public Accountant of the domestic accounting rmGao Chong, Gu ChengliCumulative years of audit services provided by CPAs of the domestic accounting rm2, 5
NameRemunerationAccounting rm performing internal control auditErnst & Young Hua Ming LLP450,000Particulars about the engagement and dismissal of the accounting rm√Applicable? Not ApplicableAt the 18th meeting of the 8th Board of Directors held on March 30, 2023 and the 2022 Annual General Meeting ofShareholders held on June 28, 2023, the Company reviewed and approved the“Proposal on the Engagement of DomesticAudit Accounting Firm for the Year 2023”and agreed to renew the engagement of Ernst & Young Hua Ming LLP as thedomestic auditing rm of the Company for the year 2023.Particulars about reappointment of the accounting rm in the auditing period?Applicable√ Not ApplicableExplanation of audit fees decreased by 20% or more compared with the previous year?Applicable√ Not ApplicableVII. Delisting risk(I) Reasons for the delisting risk warning
?Applicable√ Not Applicable(II) Countermeasures to be taken by the Company?Applicable√ Not Applicable(III) Termination of the listing and its reasons?Applicable√ Not ApplicableVIII. Events related to bankruptcy and reorganization?Applicable√ Not ApplicableIX. Major lawsuit and arbitration issues√The Company has material litigation and arbitration matters in the current year.? The Company has no material litigation or arbitration matters in the current year.
ANNUAL REPORT2023
(I) Lawsuit and arbitration already disclosed in provisional announcement, without follow-up progress?Applicable√ Not Applicable(II) Lawsuit and arbitration not disclosed in provisional announcement, or with follow-up progress√Applicable? Not Applicable
Unit:
’0,000 Yuan Currency: CNYIn the reporting period:
Plainti(applicant)
Defendant(respondent)
Partybearingjointliabilities
Type oflawsuit andarbitration
Background of the lawsuit(arbitration)
Amountinvolvedin lawsuit(arbitration)
Estimatedliabilitiesand amountcaused bylawsuit(arbitration)or not
Progressin lawsuit(arbitration)
Results of the lawsuit(arbitration) andimpacts
Execution ofadjudicationof lawsuit(arbitration)
ShanghaiZhenhuaHeavyIndustriesCo., Ltd, andZPMC QidongMarineEngineeringCo., Ltd.
Nantong HuafuPort Co., Ltd,Li Aidong, andZhao Xiaohua
NoneLawsuit
At the end of February 2014,the Company completedthe acquisition of the formerJiangsu Daoda OceanEngineering Co., Ltd throughcapital increase and held 67%of the shares. At the same time,it was agreed that the losses ofthe company, was borne by theformer shareholders includingNantong Huafu Port Co., Ltd,Li Aidong and Zhao Xiaohuabefore February 28, 2014.During the subsequent businessprocess, it was found thatthe former Daoda Companyuntruthfully disclosed somematters of lawsuit or debts,resulting in a series of losses ofthe Company.Through the related auditand readjustment etc., it wasdeemed that the loss of RMB
368.7221 million Yuan should
be in borne in the formershareholders and the lawsuitwas prosecuted again after aninconclusive press for payment.
36,872.210
On March29, 2022, theSupremePeople’sCourt issueda naljudgment onthe case.
The first item of thefirst judgment of theShanghai High People’sCourt was armed; thesecond to fifth itemsof the first judgmentwere reversed; thethree defendants wereordered to pay the totalcosts and damages ofRMB 27,434,000 andthe correspondingoverdue interest toZPMC Qidong MarineEngineering Co., Ltd.;the first trial verdictthat the respondentsshould compensateShanghai ZhenhuaHeavy Industries Co.,Ltd of RMB 1 million forthe breach of contractwas armed.
Theimplementationis beingadvanced.
(III) Other description
?Applicable√ Not Applicable
X. Punishments on the Company as well as its directors, supervisors, senior executives,controlling shareholder and actual controller for violation of laws or regulations, as well asthe relevant rectications?Applicable√ Not Applicable
XI. Particulars about the credit standings of the Company and its controlling shareholder andthe actual controller during the reporting period?Applicable√ Not Applicable
XII. Material related transactions
(I) Related transactions relevant to routine business
Section VI Important Events
1. Events disclosed in provisional announcement, without progress or changes in follow-up implementation
?Applicable√ Not Applicable
2. Events disclosed in the provisional announcement, with progress or changes in follow-up implementation
√Applicable? Not ApplicableAt the 9th meeting of the 8th Board of Directors of the Company held on April 13, 2022 and the 2021 Annual GeneralMeeting of Shareholders held on June 27, 2022, the Company reviewed and approved the“Proposal on Reviewing theSigning of Framework Agreement on Routine Related Transactions for 2022-2024”, which had been announced and wasdetailed in Extraordinary Announcement No. 2022-004, 2022-008, 2022-017 and 2023-008.
Unit: Yuan Currency: CNYRelated partyRelationship
Type ofrelatedtransaction
Contentof relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amountof relatedtransaction
Proportion inthe amount
of similartransactions (%)
Settlement
mode ofassociatedtransaction
Market price
Reason or greatdierencesbetween thebargain priceand market
price
CCCC Haifeng Wind PowerDevelopment Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
1,140,744,5811,140,744,5813.46
Monetaryfunds
1,140,744,581/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
307,346,561307,346,5610.93
Monetaryfunds
307,346,561/CCCC International (HongKong) Holdings Limited
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
541,656,238541,656,2381.64
Monetaryfunds
541,656,238/China HarbourEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
368,658,012368,658,0121.12
Monetaryfunds
368,658,012/CCCC NationalEngineering ResearchCenter of DredgingTechnology andEquipment Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
267,238,142267,238,1420.81
Monetary
funds
267,238,142/Road & BridgeInternational Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
201,584,250201,584,2500.61
Monetary
funds
201,584,250/CCCC Second HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
238,838,013238,838,0130.73
Monetary
funds
238,838,013/China Road & BridgeCorporation
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
84,833,20184,833,2010.26
Monetary
funds
84,833,201/CCCC Second HighwayEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
65,503,34665,503,3460.20
Monetary
funds
65,503,346/CCCC Tianjin Dredging Co.,Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
58,364,52058,364,5200.18
Monetary
funds
58,364,520/CCCC Tianhe MechanicalEquipment ManufacturingCo., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
50,915,82650,915,8260.15
Monetary
funds
50,915,826/CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
44,364,12744,364,1270.13
Monetary
funds
44,364,127/CCCC Third HighwayEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
36,902,68336,902,6830.11
Monetary
funds
36,902,683/CCCC-SHEC First HighwayEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
15,698,02915,698,0290.05
Monetary
funds
15,698,029/
ANNUAL REPORT2023
Related partyRelationship
Type ofrelatedtransaction
Contentof relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amountof relatedtransaction
Proportion inthe amountof similartransactions (%)
Settlementmode ofassociatedtransaction
Market price
Reason or greatdierencesbetween thebargain priceand marketpriceCCCC Fourth HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
14,761,06214,761,0620.04
Monetaryfunds
14,761,062/CCCC ShanghaiEquipment EngineeringCo., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
12,501,27212,501,2720.04
Monetaryfunds
12,501,272/CCCC Electrical andMechanical EngineeringCo., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
10,606,88110,606,8810.03
Monetary
funds
10,606,881/Sichuan Road & BridgeGroup Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
4,864,2504,864,2500.01
Monetary
funds
4,864,250/Friede & Goldman, Llc.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
2,688,7942,688,7940.01
Monetary
funds
2,688,794/Chongqing ZhongwanExpressway Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
1,995,3291,995,3290.01
Monetary
funds
1,995,329/CCCC WaterTransportation Planningand Design Institute Co.,Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
1,698,1131,698,1130.01
Monetary
funds
1,698,113/Road and BridgeConstruction ChongqingFengfu ExpresswayDevelopment Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
1,388,4041,388,4040.00
Monetary
funds
1,388,404/Road and BridgeConstruction ChongqingFengshi ExpresswayDevelopment Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
1,141,4351,141,4350.00
Monetary
funds
1,141,435/CCCC Third HarborConsultants Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
695,283695,2830.00
Monetary
funds
695,283/China CommunicationsConstruction CompanyLtd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
566,038566,0380.00
Monetary
funds
566,038/CCCC Shanghai DredgingCo., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
499,115499,1150.00
Monetary
funds
499,115/First Highway EngineeringGroup Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
322,161322,1610.00
Monetary
funds
322,161/CCCC First HarborConsultants Co., Ltd.
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
75,47275,4720.00
Monetary
funds
75,472/Chongqing YongjiangExpressway Investmentand Construction Co., Ltd.of FHEC of CCCC
Subsidiary of theholding parentcompany
Sales of goods
Project income/lease of assets
Pricing based onmarket price
29,36129,3610.00
Monetary
funds
29,361/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Rendering of
service
Project income/lease of assets
Pricing based onmarket price
171,946,593171,946,5930.52
Monetary
funds
171,946,593/Jiangsu CCCC GreenEnergy PhotovoltaicTechnology Co., Ltd.
Subsidiary of theholding parentcompany
Rendering of
service
Project income/lease of assets
Pricing based onmarket price
32,556,69632,556,6960.10
Monetary
funds
32,556,696/China CommunicationsConstruction Company(M) Sdn. Bhd.
Subsidiary of theholding parentcompany
Rendering of
service
Project income/lease of assets
Pricing based onmarket price
20,833,48520,833,4850.06
Monetary
funds
20,833,485/Road & BridgeInternational Co., Ltd.
Subsidiary of theholding parentcompany
Rendering of
service
Project income/lease of assets
Pricing based onmarket price
16,972,47716,972,4770.05
Monetary
funds
16,972,477/
Section VI Important Events
Related partyRelationship
Type ofrelatedtransaction
Contentof relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amountof relatedtransaction
Proportion inthe amount
of similartransactions (%)
Settlement
mode ofassociatedtransaction
Market price
Reason or great
dierencesbetween thebargain priceand marketpriceZhejiang LvzhouPhotovoltaic TechnologyCo., Ltd.
Subsidiary of theholding parentcompany
Rendering ofserviceProject income/lease of assets
Pricing based onmarket price
9,234,9709,234,9700.03
Monetaryfunds
9,234,970/China CommunicationsConstruction CompanyLtd.
Subsidiary of theholding parentcompany
Rendering ofserviceProject income/lease of assets
Pricing based onmarket price
6,321,9216,321,9210.02
Monetaryfunds
6,321,921/CCCC ShanghaiEquipment EngineeringCo., Ltd.
Subsidiary of theholding parentcompany
Rendering ofserviceProject income/lease of assets
Pricing based onmarket price
919,995919,9950.00
Monetaryfunds
919,995/CCCC Financial LeasingCo., Ltd.
Subsidiary of theholding parentcompany
Rendering ofserviceProject income/lease of assets
Pricing based onmarket price
691,835691,8350.00
Monetaryfunds
691,835/CCCC Shanghai DredgingCo., Ltd.
Subsidiary of theholding parentcompany
Rendering ofserviceProject income/lease of assets
Pricing based onmarket price
48,66048,6600.00
Monetary
funds
48,660/CCCC (Xiamen)Information Co., Ltd
Subsidiary of theholding parentcompany
Rendering of
service
Project income/lease of assets
Pricing based onmarket price
18,24718,2470.00
Monetary
funds
18,247/CCCC PhotovoltaicTechnology Co., Ltd.
Associatedcompany
Rendering of
service
Project income/lease of assets
Pricing based onmarket price
128,742128,7420.00
Monetary
funds
128,742/CCCC ShanghaiEquipment EngineeringCo., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
752,922,950752,922,9500.03
Monetary
funds
752,922,950/CCCC Third HighwayEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
687,713,755687,713,7550.02
Monetary
funds
687,713,755/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
371,129,367371,129,3670.01
Monetary
funds
371,129,367/CCCC Second HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
222,904,254222,904,2540.01
Monetary
funds
222,904,254/CCCC Dredging (Group)Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
158,493,251158,493,2510.01
Monetary
funds
158,493,251/CCCC First HighwayEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
149,740,693149,740,6930.01
Monetary
funds
149,740,693/CCCC Tianjin Dredging Co.,Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
109,387,957109,387,9570.00
Monetary
funds
109,387,957/No.2 Engineering Co.,Ltd. of CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
66,133,83466,133,8340.00
Monetary
funds
66,133,834/Road & Bridge East ChinaEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
14,183,52614,183,5260.00
Monetary
funds
14,183,526/CCCC WaterTransportation Planningand Design Institute Co.,Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
14,017,84214,017,8420.00
Monetary
funds
14,017,842/Road & BridgeInternational Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
11,689,04411,689,0440.00
Monetary
funds
11,689,044/CCCC Shanghai DredgingCo., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
11,588,58211,588,5820.00
Monetary
funds
11,588,582/First Highway EngineeringGroup Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
8,304,4648,304,4640.00
Monetary
funds
8,304,464/
ANNUAL REPORT2023
Related partyRelationship
Type ofrelatedtransaction
Contentof relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amountof relatedtransaction
Proportion in
the amountof similartransactions (%)
Settlement
mode ofassociatedtransaction
Market price
Reason or great
dierencesbetween thebargain priceand marketpriceCCCC Second HighwayConsultants Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
2,664,1282,664,1280.00
Monetaryfunds
2,664,128/CCCG
Holding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
1,517,3331,517,3330.00
Monetary
funds
1,517,333/CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
1,326,2001,326,2000.00
Monetary
funds
1,326,200/No.1 Engineering Co.,Ltd. of CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
1,026,5491,026,5490.00
Monetary
funds
1,026,549/CCCC Urban OperationManagement Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
712,686712,6860.00
Monetary
funds
712,686/CCCC NationalEngineering ResearchCenter of DredgingTechnology andEquipment Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
471,698471,6980.00
Monetary
funds
471,698/CCCC Third HarborConsultants Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
1,051,6631,051,6630.00
Monetary
funds
1,051,663/CCCC Xingyu TechnologyCo., Ltd
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
230,796230,7960.00
Monetary
funds
230,796/CCCC Design ConsultingGroup Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
227,920227,9200.00
Monetary
funds
227,920/China Road & BridgeCorporation
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
154,325154,3250.00
Monetary
funds
154,325/China CommunicationsInformation TechnologyGroup Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
112,655112,6550.00
Monetary
funds
112,655/China CommunicationsMaterials Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
75,47275,4720.00
Monetary
funds
75,472/Jiangsu CCCC GreenEnergy PhotovoltaicTechnology Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
38,66638,6660.00
Monetary
funds
38,666/Jiangmen HangtongShipbuilding Co., Ltd.of CCCC Fourth HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
12,637,16812,637,1680.00
Monetary
funds
12,637,168/CCCC PhotovoltaicTechnology Co., Ltd.
Associatedcompany
Receipt ofservices
Consignedprocessing forthe Company
Pricing based onmarket price
1,599,4751,599,4750.00
Monetary
funds
1,599,475/CCCC ShanghaiEquipment EngineeringCo., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
300,511,230300,511,2300.01
Monetary
funds
300,511,230/CCCC Tianjin Industry andTrade Co., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
234,024,336234,024,3360.01
Monetary
funds
234,024,336/CNPC & CCCC PetroleumSales Co., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
80,031,23180,031,2310.00
Monetary
funds
80,031,231/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
33,092,07833,092,0780.00
Monetary
funds
33,092,078/
Section VI Important Events
Related partyRelationship
Type ofrelatedtransaction
Contentof relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amountof relatedtransaction
Proportion in
the amountof similartransactions (%)
Settlementmode ofassociatedtransaction
Market price
Reason or great
dierencesbetween thebargain priceand marketprice
China CommunicationsInformation TechnologyGroup Co., Ltd.
Subsidiary of theholding parentcompany
Purchase ofgoodsProvidingmaterials for theCompany
Pricing based onmarket price
27,915,30027,915,3000.00
Monetaryfunds
27,915,300/Chuwa Risheng (Beijing)International Trade Co.,Ltd.
Subsidiary of theholding parentcompany
Purchase ofgoods
Providingmaterials for theCompany
Pricing based onmarket price
15,807,65515,807,6550.00
Monetaryfunds
15,807,655/CCCC (Xiamen)Information Co., Ltd
Subsidiary of theholding parentcompany
Purchase ofgoodsProvidingmaterials for theCompany
Pricing based onmarket price
12,959,41612,959,4160.00
Monetaryfunds
12,959,416/Shanghai Zhensha LongfuMachinery Co., Ltd.
Subsidiary of theholding parentcompany
Purchase ofgoodsProvidingmaterials for theCompany
Pricing based onmarket price
9,824,7119,824,7110.00
Monetaryfunds
9,824,711/CCCC Fourth HarborConsultants Co., Ltd.
Subsidiary of theholding parentcompany
Purchase ofgoodsProvidingmaterials for theCompany
Pricing based onmarket price
8,093,3638,093,3630.00
Monetary
funds
8,093,363/CCCC Third HarborConsultants Co., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
4,469,0274,469,0270.00
Monetary
funds
4,469,027/CCCC Urban OperationManagement Co., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
3,966,7073,966,7070.00
Monetary
funds
3,966,707/CCCC Tianhe MechanicalEquipment ManufacturingCo., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
1,769,9121,769,9120.00
Monetary
funds
1,769,912/Chuwa Bussan Co., Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
251,127251,1270.00
Monetary
funds
251,127/CCCC Xingyu TechnologyCo., Ltd
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
233,588233,5880.00
Monetary
funds
233,588/CCCC Shanghai ChannelEquipment Industry Co.,Ltd.
Subsidiary of theholding parentcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
30,97330,9730.00
Monetary
funds
30,973/CCCC PhotovoltaicTechnology Co., Ltd.
Associatedcompany
Purchase of
goods
Providingmaterials for theCompany
Pricing based onmarket price
553,577553,5770.00
Monetary
funds
553,577/Total//7,071,744,604///Details of large amount of sales returnsNoneExplanation for related transactions
The Company reviewed and approved the“Proposal on Reviewing the Signing of FrameworkAgreement on Routine Related Transactions for 2022-2024”at the 2021 Annual General Meeting ofShareholders. In 2023, the amount of the annual related transactions in the normal business betweenthe Company and its subsidiaries and CCCG and its subsidiaries was about RMB 7.071 billion, whichdid not exceed the upper limit of the amount of routine related transactions approved by the 2021Annual General Meeting of Shareholders and the expcted upper limit of the amount of routine relatedtransactions in 2023.
3. Events not disclosed in provisional announcements
?Applicable√ Not Applicable
(II) Related transactions arising from acquisition or oering of assets or stock equity
1. Events disclosed in provisional announcement, without progress or changes in follow-up implementation
?Applicable√ Not Applicable
2. Events disclosed in the provisional announcement, with progress or changes in follow-up implementation
?Applicable√ Not Applicable
ANNUAL REPORT2023
3. Events not disclosed in provisional announcements
?Applicable√ Not Applicable
4. Where agreed performance is involved, the performance achievement during the reporting period should
be disclosed?Applicable√ Not Applicable
(III) Material related transactions with joint external investments
1. Events disclosed in provisional announcement, without progress or changes in follow-up implementation
√Applicable? Not Applicable
Summary of eventsQuery index
On August 28, 2023, the Company held the 24th meeting of the 8th Board of Directors and the 15th meeting ofthe 8th Board of Supervisors. The meetings reviewed and approved the“Proposal on Reviewing the Waiver of thePreemptive Right for the Capital Increase of the Joint-Stock Company CCCC Leasing and Related Transactions”,agreeing to the capital increase plan of CCCC Financial Leasing Co., Ltd. (hereinafter referred to as“CCCC Leasing”).Zhenhua Heavy Industries increased the registered capital by RMB 10.6493 million in the same proportion of surplusreserves, and waived the preemptive right for the cash capital increase of CCCC Leasing. After the completion ofthis capital increase, the Company’s equity ratio in CCCC Leasing will drop from 9.00% to 5.82%, corresponding to acapital contribution of approximately RMB 524 million.
See Extraordinary AnnouncementNo. 2023-037 for details
2. Events disclosed in the provisional announcement, with progress or changes in follow-up implementation
?Applicable√ Not Applicable
3. Events not disclosed in provisional announcements
?Applicable√ Not Applicable(IV) Current associated rights of credit and liabilities
1. Events disclosed in provisional announcement, without progress or changes in follow-up implementation
?Applicable√ Not Applicable
2. Events disclosed in the provisional announcement, with progress or changes in follow-up implementation
?Applicable√ Not Applicable
3. Events not disclosed in provisional announcements
?Applicable√ Not Applicable
(V) Financial business between the Company and related nance companies, or between nancecompanies under the Company’s control and related parties
√Applicable? Not Applicable
1. Deposit business
√Applicable? Not Applicable
Section VI Important Events
Unit: Yuan Currency: CNY
Related partyRelationship
Maximumdaily depositlimit
Depositinterest raterange
December 31,2022Amount incurred in the current period
December 31,
2023Total depositamount in thecurrent period
Total withdrawalamount in thecurrent periodCCCC FinanceCompany Ltd.
Subsidiary of the holdingparent company
1,600,000,0000.46%-1.76%435,56820,894,262,02219,294,697,5901,600,000,000Total///435,56820,894,262,02219,294,697,5901,600,000,000
2. Loan business
√Applicable? Not Applicable
Unit: Yuan Currency: CNYRelatedparty
RelationshipLoan limit
Loan interestrate range
December 31,2022Amount incurred in the current period
December 31,2023Total loan amountin the currentperiod
Total repaymentamount in thecurrent periodCCCC FinanceCompany Ltd.
Subsidiary of the holdingparent company
2,000,000,0002%644,000,00048,840,0000692,840,000Total///644,000,00048,840,0000692,840,000
3. Credit business or other nancial business
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Related partyRelationshipBusiness typeTotal amountActual amount incurred
CCCC Finance Company Ltd.Subsidiary of the holding parent companyCredit2,000,000,000542,527CCCC Xiongan Financial Leasing Co., Ltd.Subsidiary of the holding parent companyFactoring300,000,000158,922,791
4. Other description
?Applicable√ Not Applicable(VI) Others?Applicable√ Not ApplicableXIII. Material contracts and their performance(I) Trusteeship, contracting and leasing matters
1. Trusteeship
?Applicable√ Not Applicable
2. Contracting
?Applicable√ Not Applicable
3. Leasing
√Applicable? Not Applicable
ANNUAL REPORT2023
Unit:
’0,000 Yuan Currency: CNYName of
lessor
Name of
lessee
Leasedassets
Amountinvolvedin leasedassets
Startingdate ofleasing
Terminationdate ofleasing
Incomefromleasing
Basis fordeterminingincome from
leasing
Impacts ofincome fromleasing onthe Company
Relatedtransactionor not
RelationshipShanghaiZhenhuaHeavyIndustriesCo., Ltd.
ShanghaiZhenlongAssetManagementCo., Ltd.
Lease ofhouses
20,659.29
August 10,2012
July 9, 20254,763.81Agreed4,763.81NoShanghaiZhenhuaHeavyIndustriesCo., Ltd.
ShanghaiChangyinReal EstateDevelopmentCo., Ltd.
Lease ofhouses
20,659.29
March 1,
2021
February 29,
2024
3,770.00Agreed3,770.00NoShanghaiZhenhuaHeavyIndustriesCo., Ltd.
ShanghaiChangyiIndustrial Co.,Ltd
Lease ofhouses
1,249.77
August 15,
2021
August 14,
2031
1,575.08Agreed1,575.08No
Leasing explanationNone
(II) Guarantee
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
External guarantee of the Company (excluding guarantee to the subsidiaries)Guarantor
Relationbetween
theguarantorand thelistedcompany
Guaranteed
party
Guaranteed
amount
Date ofguarantee(signingdate ofagreement)
Startingdate ofguarantee
Duedate ofguarantee
Type ofguarantee
Collateral
(if any)
Fulllment
of theguarantee
or not
Overdue
or not
Amount ofoverdueguarantee
Counterguarantee
or not
Guarantee
by therelatedparty or
not
Relationship
Total amount of guarantee incurred during the reporting period (excluding guarantee to thesubsidiaries)Total balance of guarantee at the end of the reporting period (A) (excluding guarantee to thesubsidiaries)
Guarantee of the Company and its subsidiaries to the subsidiariesTotal amount of guarantee to the subsidiaries incurred during the reporting period444,369,500Total balance of guarantee to the subsidiaries at the end of the reporting period (B)314,809,500
Total amount of guarantee of the Company (including guarantee to the subsidiaries)Total amount of guarantee (A+B)314,809,500Proportion of total amount of guarantee in the net assets of the Company (%)2.00Including:
Amount of guarantee to the shareholders, the actual controller and related parties (C)Amount of debt guarantee directly or indirectly provided to the guaranteed party with theasset-liability ratio over 70% (D)
281,641,737Amount of guarantee exceeding 50% of net assets (E)Total guarantee amount of the above three items (C+D+E)281,641,737Explanation for the joint and several repayment liabilities for the undue guarantee
Section VI Important Events
External guarantee of the Company (excluding guarantee to the subsidiaries)Guarantor
Relationbetween
theguarantorand thelistedcompany
Guaranteed
party
Guaranteed
amount
Date ofguarantee(signingdate ofagreement)
Startingdate ofguarantee
Duedate ofguarantee
Type ofguarantee
Collateral(if any)Fulllmentof theguaranteeor notOverdueor not
Amount ofoverdueguarantee
Counterguaranteeor notGuaranteeby therelatedparty or
not
Relationship
Description of guarantee
The Company’s 29th meeting of the 8th Board of Directors held on December 6, 2023 reviewed andapproved the“Proposal on Reviewing the Provision of Guarantees for Korean Subsidiaries”, agreeing thatthe Company would provide guarantee support for Shanghai Zhenhua Korea Corporation (hereinafterreferred to as the“Korean subsidiary”), with a guarantee period of 3 years and an upper limit of US$ 15million. This matter does not need to be submitted to the Company’s general meeting of shareholders forreview. As of December 31, 2023, the Company provided guarantees of US$ 6.17 million for the Koreansubsidiary, equivalent to RMB 33,167,763.The company's 2022 Annual General Meeting of Shareholders reviewed and approved the“Proposal onthe Company’s 2023 External Guarantee Plan”, agreeing that the Company would provide guaranteesupport for Shanghai Zhenhua Heavy Industries Co., Ltd. Netherlands LLC (hereinafter referred to as the“Dutch subsidiary”) and that Zhenhua Heavy and Large Cargo Shipping (Hong Kong) Co., Ltd. (hereinafterreferred to as the“GPO Company”), the Company’s 50%-controlled subsidiary, would provide guaranteesupport for its wholly-owned subsidiaries. Among them: the guarantee period for the Dutch subsidiaryis 3 years, with an upper limit of 11 million euros (equivalent to RMB 81.6519 million); the guaranteeperiod for GPO Company to its subsidiaries is 3 years, with an upper limit of US$ 200 million (equivalentto RMB 1.393 billion). As of December 31, 2023, the Company provided a guarantee of 850,000 euros,equivalent to RMB 6,691,323, to the Dutch subsidiary. GPO Company provided a guarantee of US$ 77.64million, equivalent to RMB 549,900,828.00, to its four wholly-owned subsidiaries, with the proportionatedisclosed guarantee equivalent to RMB 274,950,414.00.The Company’s 2020 Annual General Meeting of Shareholders reviewed and approved the“Proposal onProviding Guarantees for Subsidiaries”, agreeing that the company would provide guarantee support forZPMC Machinery Equipment Services Co., Ltd. (hereinafter referred to as“ZPMC Machinery Equipment”)and Terminexus Co., Ltd. (hereinafter referred to as“Terminexus”), with a guarantee period of 3 years andan upper limit of RMB 400 million (RMB 300 million for ZPMC Machinery Equipment; RMB 100 million forTerminexus). As of December 31, 2023, the Company’s guarantees for ZPMC Machinery Equipment andTerminexus have been fully settled.
(III) Consigned cash assets management
1. Consigned nancing
(1). General information of consigned nancing
?Applicable√ Not ApplicableOther information?Applicable√ Not Applicable
(2). Information on individual consigned nancing
?Applicable√ Not ApplicableOther information?Applicable√ Not Applicable
(3). Provision for impairment of consigned nancing
?Applicable√ Not Applicable
2. Consigned loans
(1). General information of consigned loans
?Applicable√ Not ApplicableOther information?Applicable√ Not Applicable
(2). Individual consigned loans
?Applicable√ Not Applicable
ANNUAL REPORT2023
Other information?Applicable√ Not Applicable
(3). Provision for impairment of consigned loans
?Applicable√ Not Applicable
3. Other information
?Applicable√ Not Applicable(IV) Other material contracts?Applicable√ Not ApplicableXIV. Progress statement on the utiliazation of raised funds?Applicable√ Not ApplicableXV. Other signicant events for investors’ judgment of value and investment decision-making√Applicable? Not ApplicableThe Company’s 25th meeting of the 8th Board of Directors held on September 22, 2023 reviewed and approved the“Proposal on Reviewing the Intention of Zhenhua Heavy Industries’Wholly-Owned Subsidiary to Introduce StrategicInvestors and Employee Stock Ownership Platform to Increase Its Capital”, in which the wholly-owned subsidiaryZPMC Machinery Equipment Services Co., Ltd. (hereinafter referred to as“T Company”) intended to increase its capitalby introducing strategic investors through public listing on the Shanghai United Assets and Equity Exchange andsimultaneously carry out employee stock ownership. See the relevant announcement disclosed by the Company on thewebsite of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on September23, 2023 (Extraordinary Announcement No. 2023-041) for details. T Company has completed the signing of the capitalincrease agreement with relevant parties.
Section VII Changes in Shares and Shareholders' SituationSection VII Changes in Shares and Shareholders' Situation
I. Changes in share capital
(I) Table of changes in shares
1. Table of changes in shares
The total number of shares of the Company and the structure of its share capital remained unchanged during thereporting period.
2. Notes to changes in shares
?Applicable√ Not Applicable
3. Eect of changes in shares on nancial indicators such as earnings per share and net asset per share for the
latest year and period (if any)?Applicable√ Not Applicable
4. Other contents that the Company deems necessary to be disclosed or required to be disclosed by the
securities regulatory authority
?Applicable√ Not Applicable(II) Changes in shares with restrictive conditions for sales?Applicable√ Not ApplicableII. Issuance and listing of securities(I) Securities issuance by the reporting period
?Applicable√ Not ApplicableParticulars about the issuance of securities during the reporting period (for bonds of dierent interest rates within theduration, please state them respectively)?Applicable√ Not Applicable(II) Changes in total shares and the shareholder structure of the Company, as well as in asset and liabilitystructures?Applicable√ Not Applicable(III) Existing internal employee ownership?Applicable√ Not Applicable
ANNUAL REPORT2023
III. Shareholders and actual controller
(I) Total number of shareholders
Total of ordinary shareholders by the end of the reporting period202,410Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report202,830
(II) Table of the shares held by top 10 shareholders, top 10 holders of marketable shares (or shareholderswithout trading limited conditions) by the end of reporting period
Unit: shareShareholdings of top ten shareholders (excluding shares lent through renancing)Name of shareholder(in full)
Changes inthe reportingperiod
Number ofshares held atthe end of theperiod
Ratio (%)
Number ofshares withtrading limitedconditions held
Shares in pledge, markedor frozen
Nature ofshareholderShare status
NumberofsharesCCCG (HK) Holding Limited0916,755,84017.4010None0
Overseaslegal personChina Communications ConstructionCompany Ltd.
0855,542,04416.2390None0
State-ownedlegal personChina Communications ConstructionGroup Co., Ltd.
0663,223,37512.5890None0
State-ownedlegal personCITIC Bank Co., Ltd. - BOCOM SchroderNew Life Flexible Allocation HybridSecurities Investment Fund
-7,841,42826,701,1570.51UnknownUnknownDacheng Fund- Agricultural Bank ofChina - Dacheng China SecuritiesFinancial Asset Management Plan
-279,20019,576,7200.37UnknownUnknownVANGUARD EMERGING MARKETSSTOCK INDEX FUND
016,888,8460.32UnknownUnknownHarvest Fund - Agricultural Bankof China - Harvest nancial assetmanagement plan
-2,148,60014,984,7760.28UnknownUnknownVANGUARD TOTAL INTERNATIONALSTOCK INDEX FUND
014,924,1610.28UnknownUnknownChina Southern Asset Management-Agricultural Bank of China - ChinaSouthern Asset Management ChinaSecurities Financial Asset ManagementPlan
-5,628,90014,227,0200.27UnknownUnknownShi Qing013,069,5000.25UnknownUnknown
Shareholdings of top 10 shareholders without trading limited conditionsName of shareholder
Number of non- restrictive
circulation shares held
Type and number of shares
TypeQuantity
CCCG (HK) Holding Limited916,755,840Foreign shares listed domesticallyChina Communications Construction Company Ltd.855,542,044RMB ordinary sharesChina Communications Construction Group Co., Ltd.663,223,375RMB ordinary sharesCITIC Bank Co., Ltd. - BOCOM Schroder New Life FlexibleAllocation Hybrid Securities Investment Fund
26,701,157RMB ordinary sharesDacheng Fund- Agricultural Bank of China - Dacheng ChinaSecurities Financial Asset Management Plan
19,576,720RMB ordinary sharesVANGUARD EMERGING MARKETS STOCK INDEX FUND16,888,846Foreign shares listed domesticallyHarvest Fund - Agricultural Bank of China - Harvest nancialasset management plan
14,984,776RMB ordinary sharesVANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND14,924,161Foreign shares listed domestically
Section VII Changes in Shares and Shareholders' SituationShareholdings of top 10 shareholders without trading limited conditionsName of shareholder
Number of non- restrictive
circulation shares held
Type and number of sharesTypeQuantityChina Southern Asset Management- Agricultural Bank ofChina - China Southern Asset Management China SecuritiesFinancial Asset Management Plan
14,227,020RMB ordinary sharesShi Qing13,069,500RMB ordinary sharesExplanation of the special accounts for repurchase amongthe top ten shareholdersNote to the said shareholders' entrusting voting rights,entrusted voting rights and waivered voting rightsNotes to the related relation or consistent actions of theabove-mentioned shareholders
Among the above top 10 shareholders, CCCG (HK) Holding Limited, ChinaCommunications Construction Group Co., Ltd. and China Communications ConstructionCompany Ltd. are related companies. It was unknown to the Company whether therewas related relation between other shareholders and whether they belonged to theconcerted actor specified in the“Management Method on Information Disclosure forShareholding Change of the Shareholders of Listed Companies”.Explanation on preferred stock holders with recovered votingrights and number of stocks held by themShares lent by top ten shareholders through renancing?Applicable√ Not ApplicableChanges in the top ten shareholders compared with the previous period√Applicable? Not Applicable
Unit: shareChanges in top ten shareholders compared with the end of the previous periodFull name of shareholders
Addition/withdrawal duringthis reportingperiod
Number of shares lentthrough renancing andnot yet returned at theend of the period
Number of shares held inshareholders’ ordinary accountsand credit accounts and shareslent through renancing andnot yet returned at the end of
the periodTotalProportion (%)TotalProportion (%)
VANGUARD EMERGING MARKETS STOCK INDEX FUNDAddition----Harvest Fund - Agricultural Bank of China - Harvest nancial assetmanagement plan
Addition0000VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUNDAddition----Shi QingAddition----GF Fund- Agricultural Bank of China - GF China SecuritiesFinancial Assets Management Plan
Withdrawal0000E FUND Management- Agricultural Bank of China - E FUNDManagement China Securities Financial Assets Management Plan
Withdrawal0000Lombarda China Fund- Agricultural Bank of China - LombardaChina Fund China Securities Financial Assets Management Plan
Withdrawal0000Yinhua Fund- Agricultural Bank of China - Yinhua China SecuritiesFinancial Asset Management Plan
Withdrawal0000Shareholdings of the top ten restricted shareholders and the restrictions?Applicable√ Not Applicable(III) Indicate whether any strategic investor or general corporate has become a top-10 shareholder dueto placement of new shares?Applicable√ Not Applicable
ANNUAL REPORT2023
IV. Controlling shareholder and actual controller
(I) Controlling shareholder
1. Legal person
√Applicable? Not ApplicableNameChina Communications Construction Group Co., Ltd.Company principal or legal representativeWang TongzhouDate of EstablishmentDecember 8, 2005
Main business
Construction of overseas projects and international bidding projects at home; general contracting forconstruction of various special ships, leasing and maintenance of special ship and construction machines;offshore towage and professional services related to the ocean engineering; technical consultantservices regarding the ship and the supporting port equipment; engaging in the general contractingof construction projects for ports, channels, highways and bridges both home and abroad (includingtechnical and economic consultation of engineering, feasibility study, survey, design, construction,supervision, procurementand supply for related complete set of equipment or materials, and equipment installation);undertaking the general contracting of the construction of industrial and civil works, railway, metallurgy,petrochemical, tunnel, power, mine, water conservancy, and municipal works; import and exportbusiness; real estate development and property management; investment and management oftransportation, hotel and tourism industries.Interests held in other domestically andoverseas listed companies in the reportingperiod
CCCG holds 59.47% of the stock equity of CCCC (601800.SH, 1800.HK) and it is the controlling shareholder.CCCG holds 100% of the stock equity of CCCG Real Estate Group Co., Ltd. CCCG Real Estate Group Co.,Ltd. holds 52.32% of the stock equity of CCCG Real Estate Co., Ltd. (000736.SZ) and it is the controllingshareholder. CCCG and its controlling subsidiaries totally hold 28.97% of the stock equity of GreentownHolding Co., Ltd. (3900. HK) and they are the controlling shareholders. China Urban and Rural HoldingGroup Co., Ltd., a wholly-owned subsidiary of CCCG, and CCCC Fund jointly hold 33.40% of the stockequity of Originwater (300070. SZ), and they are the controlling shareholders. CCCG holds 62.35% of CCCCDesign (600720.SH) through CCCC and China Urban-Rural Holding Group Co., Ltd. and it is the controllingshareholder.Notes to other circumstances
2. Natural person
?Applicable√ Not Applicable
3. Particulars about no controlling shareholder in the Company
?Applicable√ Not Applicable
4. Change of the controlling shareholder in the reporting period
?Applicable√ Not Applicable
Section VII Changes in Shares and Shareholders' Situation
5. Block diagram of the ownership and control relationship between the Company and the controlling
shareholder
√Applicable? Not Applicable
$IJOB$PNNVOJDBUJPOT$POTUSVDUJPO(SPVQ$P-UE
4IBOHIBJ;IFOIVB)FBWZ*OEVTUSJFT$P-UE
$$$(),)PMEJOH-JNJUFE
$IJOB$PNNVOJDBUJPOT$POTUSVDUJPO$PNQBOZ-UE4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP
(II) Actual controller
1. Legal person
?Applicable√ Not Applicable
2. Natural person
?Applicable√ Not Applicable
3. Particulars about no actual controller in the Company
?Applicable√ Not Applicable
4. Description of the changes in control of the Company during the reporting period
?Applicable√ Not Applicable
ANNUAL REPORT2023
5. Block diagram of ownership and control relationship between the Company and the actual controller
√Applicable? Not Applicable
$IJOB$PNNVOJDBUJPOT$POTUSVDUJPO
(SPVQ$P-UE
4UBUFPXOFE"TTFUT4VQFSWJTJPOBOE"ENJOJTUSBUJPO$PNNJTTJPO
PGUIF4UBUF$PVODJM
4IBOHIBJ;IFOIVB)FBWZ*OEVTUSJFT$P-UE
$$$(),)PMEJOH-JNJUFE
$IJOB$PNNVOJDBUJPOT$POTUSVDUJPO$PNQBOZ-UE4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP
4IBSFIPMEJOHSBUJP
6. Indicate whether the actual controller controls the Company via trust or other ways of assets management
?Applicable√ Not Applicable(III) Other information about the controlling shareholder and the actual controller?Applicable√ Not ApplicableV. Indicate whether the cumulative number of shares put in pledge by the Company’scontrolling shareholder or the largest shareholder and its acting-in-concert parties accountsfor over 80% of their shareholdings in the Company
?Applicable√ Not Applicable
Section VIII Preference SharesVI. Other corporate shareholders holding more than 10%√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Name of corporateshareholder
Companyprincipal or legalrepresentative
Date ofestablishment
Organization codeRegistered capital
Main business or management
activitiesChina CommunicationsConstruction CompanyLtd.
Wang TongzhouOctober 8, 200691110000710934369E16,165,711,425
General contracting of constructionprojects for ports, waterways,highways, bridges, etc.CCCG (HK) HoldingLimited
Peng Guangsheng
September 5,2017
/HKD 1,000
Investment management, projectinvestment, project nancingDescription
CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of China CommunicationsConstruction Group Co., Ltd.VII. Particulars about restrictions on shareholding reduction?Applicable√ Not ApplicableVIII. Specic implementation of share repurchases during the reporting period?Applicable√ Not Applicable
Section VIII Preference Shares?Applicable√ Not Applicable
ANNUAL REPORT2023Section IX Bonds
I. Enterprise bonds, corporate bonds and debt nancing instruments of non-nancialenterprises√Applicable? Not Applicable(I) Enterprise bonds?Applicable√ Not Applicable
(II) Corporate bonds?Applicable√ Not Applicable(III) Interbank bond market debt nancing instrument of non-nancial enterprises√Applicable? Not Applicable
1. Basic information of debt nancing instruments of non-nancial enterprises
Unit: Yuan Currency: CNY
Name of bondAbbreviationCodeIssue dateValue date
MaturitydateOutstandingbalance
Interestrate (%)
Paymentmethod
Tradingvenue
Investoreligibilityarrangements(if any)
Tradingmechanism
Risk ofterminationof listingand tradingShanghai ZhenhuaHeavy IndustriesCo., Ltd. 2022medium-termnotes series I (sci-tech innovationnote)
22 ZPMCMTNO01(sci-techinnovation
note)
102281893
August 22,
2022
August 24,
2022
December31, 2099
500,000,0003.22
Aug.24every year
Interbankmarket
Centralized
book-entry andcentralizedplacement
N/A
Company’s response to the risk of termination of listing of bonds?Applicable√ Not ApplicableOverdue bonds?Applicable√ Not ApplicableInterest payment and payment of bonds during the reporting period?Applicable√ Not Applicable
2. Triggering and execution of issuer or investor option clauses and investor protection clauses
?Applicable√ Not Applicable
3. Intermediary agencies providing services for bond issue and duration business
Agency nameOce address
Signed by theAccountants
Person to contactContact number
Bank of Communications Co., Ltd.No.188 Yincheng Middle Road, Shanghai-Xiong Han021-38579212Industrial Bank Co., Ltd.
Industrial Bank Tower, 398 Middle JiangbinBlvd., Taijiang District, Fuzhou, Fujian
-
Lin Chen,Cheng Qiuyun
010-89926551,021-62677777China Lianhe Credit Rating Co. Ltd.
17/F, PICC Building, No.2 JianguomenwaiStreet, Chaoyang District, Beijing
-Yang Heng010-85679696
Section IX Bonds
Agency nameOce address
Signed by theAccountants
Person to contactContact number
Ernst & Young Hua Ming LLP
50/F, Shanghai World Financial Center,No. 100 Century Ave., Pudong New Area,Shanghai
-Gao Chong021-22288888Shanghai Duan & Duan Law Firm
58F, Shanghai Tower, No. 501 YinchengMiddle Road, Lujiazui Sub-district, PudongNew Area, Shanghai
-Wang Xiaobo021-32230722
Changes in the above intermediary agencies?Applicable√ Not Applicable
4. Use of raised funds at the end of the reporting period
?Applicable√ Not ApplicableProgress and operating benets of the raised funds used for construction projects?Applicable√ Not ApplicableChange in the use of above funds raised from bonds during the reporting period?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
5. Adjustment of credit rating results
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
6. Implementation and changes in guarantee, debt repayment plan and other debt repayment guarantee
measures during the reporting period and their impacts?Applicable√ Not Applicable
7. Other information on debt nancing instruments of non-nancial enterprises
?Applicable√ Not Applicable(IV) The loss in the scope of consolidated nancial statements during the reporting period exceeding10% of the net assets as at the end of the prior year
?Applicable√ Not Applicable(V) Overdue interest-bearing debts other than bonds at the end of the reporting period?Applicable√ Not Applicable(VI) Violations of laws and regulations, the articles of association, the management system forinformation disclosure matters, as well as the impact of conditions agreed or promised in the bondprospectus on the rights and interests of bond investors during the reporting period
?Applicable√ Not Applicable
ANNUAL REPORT2023
(VII) Main accounting data and nancial indexes of the Company in recent 2 years as of the end of thereporting period√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Main indexes20232022Year-on-year change (%)Reason of change
Net profit attributable to shareholders of thelisted company after deducting the non-recurringprots and losses
274,145,961414,835,324-33.91Current ratio0.941.07-12.15Quick ratio0.410.3324.24Asset-liability ratio (%)77.7776.83+0.94EBITDA all debt ratio0.050.050Interest coverage ratio1.811.5616.03Cash interest coverage ratio5.482.9287.67EBITDA interest coverage ratio3.222.7417.52Loan repayment ratio (%)1001000Interest coverage ratio (%)1001000
II. Information about convertible corporate bonds
?Applicable√ Not Applicable
Section X Financial ReportSection X Financial Report
I. Auditors’ Report√Applicable? Not Applicable
Auditors' Report
Ernst & Young (2024) SZ No. 70020902_B01Shanghai Zhenhua Heavy Industries Co., Ltd.All shareholders of Shanghai Zhenhua Heavy Industries Co., Ltd.:
(I) OpinionWe have audited the nancial statements of Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to as the“Company”), which comprise the consolidated balance sheet and the Company's balance sheet as at December 31, 2023,the consolidated income statement and the Company’s income statement, the consolidated statement of changes inshareholders’ equity and the Company’s statement of changes in owners’equity and the consolidated statement of cashows and the Company's statement of cash ows for the year then ended as well as the notes to the nancial statements.In our opinion, the nancial statements of the Company attached are prepared, in all material respects, in accordancewith the Accounting Standards for Business Enterprises, and fairly present the consolidated nancial position and theCompany's nancial position as at December 31, 2023 and the consolidated operating results and cash ows and theCompany’s operating results and cash ows for the year then ended.(II) Basis for Our Opinions
We conducted our audit in accordance with Chinese Certied Public Accountants Auditing Standards. Our responsibilitiesunder those standards are further described in the Auditors’Responsibilities for the Audit of the Financial Statementssection of this auditors’report. According to the Code of Ethics for Certified Public Accountants of China,we areindependent of the Company, and we have fullled other responsibilities in the aspect of code of ethics. We believe thatthe audit evidence we have obtained is sucient and appropriate to provide a basis for our opinion.(III) Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of thenancial statements for the current period. The response to these matters is based on the overall audit of the nancialstatements and the formation of audit opinions. We do not express our opinions on these matters separately. Thefollowing description of how our audit addressed the key audit matter is also against this background.We have fullled the responsibilities stated in“Responsibilities of Certied Public Accountant for Auditing of FinancialStatement”in this report, including the responsibilities related to these key auditing matters. Correspondingly, ourauditing work includes the implementation of the auditing procedure designed for dealing with the great misstatementrisks of the nancial statement to be evaluated. The results from the implementation of the auditing procedure by us,including the procedure to be implemented for the following key auditing matters, oers a foundation for releasing theauditing opinions of the nancial statements.
ANNUAL REPORT2023Key Audit Matters:How our audit addressed the key audit matter:
1. Inventory depreciation reserves
Shanghai Zhenhua Heavy Industries Co., Ltd. is mainly engaged inmanufacturing the port container crane; in addition, it is also engaged inthe manufacture of bulk handling machine, oshore heavy-duty machineand large-sized steel structure. Its inventories mainly include raw materials,outsourcing parts and components, products in the process and inventorygoods. Since the production cycle of the products is relatively long, thenet realizable value of the related inventory may uctuate with the changein the market demand, resulting in the inventory depreciation risks. Themanagement sets aside the inventory depreciation reserves accordingto the balance of the inventory cost and the net realizable value. The netrealizable value is determined as per the estimated selling price of theinventory minus the cost, the estimated selling expenses and the relatedtaxes that may occur in the completion on the assumption that themanagement layer adopts a certain estimate and hypothesis in determiningthe net realizable value. In case of dierence between the actual gure andthe originally estimated gure, the related balance will aect the book valueof the inventory and the depreciation loss in the estimated uctuation.As of December 31, 2023, in the consolidated financial statements, thebalance of inventories was RMB 25.15 billion and the reserve for inventorydepreciation was RMB 0.87 billion; in the financial statements of theCompany, the balance of inventories was RMB 22.59 billion and the reservefor inventory depreciation was RMB 0.87 billion.The accounting policy and other disclosures regarding the inventory arestated in Note III (10), Note III (31) and Note V (8) of the nancial statement.
Our procedure mainly included knowing and testing the validity of thecontrol related to the provision of inventory depreciation reserves andthe method of calculating the net realizable value of the Group. We alsoimplemented the related auditing procedures over the inventory such assupervision of inventory to verify whether the management had markedthe inventory with slow turnover and defectives and taken into full accountin provision of inventory depreciation reserves. In addition, we obtained thecomputation sheet of provision of inventory depreciation reserves from themanagement, rechecked the calculation method and result. As to the keyelements taken into consideration by the management in calculating thenet realizable value, including the estimated selling price and the cost thatmay occur till completion, we evaluated the hypothesis and the estimatesthrough analyzing the related historical data and comparing the after-datedata of Shanghai Zhenhua Heavy Industries Co., Ltd. We also rechecked thedisclosure of inventory depreciation reserves in nancial statements.
2. Provision for bad debts of accounts receivable
The accounts receivable of Shanghai Zhenhua Heavy Industries Co., Ltd. ismainly from the business contract on port machine and ocean engineeringmanufacturing. Since it involves large contracted value, long constructionperiod, relatively complicated technical parameters, the implementationof the contract may be affected by the periodicity of the economicenvironment. The accounts receivable has certain risk in the recovery in caseof any dispute in contract or the industry is in recession. The provisions forbad debts of accounts receivable are recognized on the basis of estimatedcredit losses, involving major judgment and estimates. The management ofanalyzed the nancial position of counter parties, guarantee acquired foraccounts receivable, historical repayment records of accounts receivable, aswell as the credit rating and future economic situations of counter partiesfor evaluating the credit risk of accounts receivable.As of December 31, 2023, in the consolidated financial statements, thebalance of accounts receivable was RMB 9.84 billion and the provisionfor bad debts of accounts receivable was RMB 2.57 billion; in the nancialstatements of the Company, the balance of accounts receivable was RMB
22.02 billion and the provision for bad debts of accounts receivable was
RMB 2.33 billion.The accounting policy and other disclosures regarding the provision for baddebts of accounts receivable are stated in Note III (9), Note III (31), Note V (4)and Note XIII (1) of the nancial statements.
Our procedure mainly included the evaluation of the accounting estimaterelating to the depreciation reserves, such as the nancial status and creditrating of the counterpart; checked the account age of accounts receivableand historical repayment record and evaluated whether the financialproblems of the counter party had eects on the recovery of the accountsreceivable; for the accounts receivable evaluated based on the portfolio,we rechecked the management's setting of credit risk features portfolio,checked the key information such as account age and credit record of eachportfolio by sampling, and rechecked the basis of management's evaluationof credit risk and expected credit loss amount based on the credit riskfeatures portfolio, including testing historical default data and checking theactual credit loss in the current year; rechecked the disclosure of bad debtprovision for accounts receivable in nancial statements.
Section X Financial Report
Key Audit Matters:How our audit addressed the key audit matter:
3. Revenue recognition
Most of the revenue of Shanghai Zhenhua Heavy Industries Co., Ltd.comes from the one of the construction contracts on the large-sized portequipment, heavy equipment, steel structure and construction projectscustomized by the customer.Since the operating revenue is one of the key performance indicators ofShanghai Zhenhua Heavy Industries Co., Ltd., there may be a risk of materialmisstatement in whether it is recognized and presented in the appropriatenancial statement period, so we identify revenue recognition as a key auditmatter.In 2023, in the consolidated nancial statements, the operating revenue wasRMB 32.93 billion; in the nancial statements of the Company, the operatingrevenue was RMB 28.45 billion.The accounting policy and other disclosures regarding the operatingrevenue are stated in Note III (22), Note III (31), Note V (46) and Note XIII (4)of the nancial statements.
Our procedure mainly included evaluating and testing the management’sinternal control related to revenue recognition, selected the sales contractwith significant amount, checked the important contract terms relatedto revenue recognition, and evaluated the management’s accountingjudgment and estimate on performance obligations, revenue recognitionamount (including variable consideration) and the recognition at a certaintime point or within a period of time. Through selecting the samples, weverified whether the contract revenue recognized in the year conformedto the revenue recognition conditions; implemented the cutoff checkprocedure to validate the revenue was conrmed in the proper accountingperiod. For the revenue recognized in a certain period of time, we evaluatedthe judgment and estimate of the total contract cost and total processingamount made by the management, and made sampling to calculateand check the income determined by the occurred contract cost and theexpected total contract cost again; implemented the analysis procedureagainst the changes in revenue and gross profit of various businesses;rechecked the disclosure of revenue recognition in nancial statements.(IV) Other Information
The management of Shanghai Zhenhua Heavy Industries Co., Ltd. shall be responsible for other information. The otherinformation comprises information of the annual report, but excludes the nancial statements and our auditors’ report.Our opinion on the nancial statements does not cover the other information, and we do not and will not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other information identifiedabove and, in doing so, consider whether the other information is materially inconsistent with the nancial statements orour knowledge obtained in the audit, or otherwise appears to be materially misstated.If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’
report, we conclude that there is a material misstatement of this other information, we are required to report that fact. Inthis regard, we have nothing to report.
(V) Responsibilities of the Management and Those Charged with Governance for the Financial StatementsThe Management is responsible for preparing the nancial statements in accordance with the requirements of AccountingStandards for Business Enterprises to achieve a fair presentation, and for designing, implementing and maintaininginternal control that is necessary to ensure that the nancial statements are free from material misstatements, whetherdue to frauds or errors.In preparing the nancial statements, the Management is responsible for assessing the Company’s going-concern ability,disclosing the matters related to going concern (if applicable) and using the going-concern assumption, unless theManagement either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's nancial reporting process.(VI) Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion.Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with theaudit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error andare considered material if, individually or in the aggregate, they could reasonably be expected to inuence the economicdecisions of users taken on the basis of these nancial statements.
ANNUAL REPORT2023During the process of an audit conducted in accordance with audit standards, we exercise professional judgment andmaintain professional scepticism throughout the audit. Meanwhile, we also implement the following work:
(1) Identify and assess the risks of material misstatement of the nancial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sucient and appropriate toprovide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used by and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the Management
’s use of the going concern basis of accounting. Based on theaudit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signicantdoubt on the ability of Shanghai Zhenhua Heavy Industries Co., Ltd. to continue as a going concern. If we conclude thata material uncertainty exists, we are required to, in our auditors' report, draw attention of the users of statements to therelated disclosures in the financial statements; if such disclosures are inadequate, we should modify our opinion. Ourconclusions are based on the audit evidence obtained up to the date of our auditors’report. However, future events orconditions may cause Shanghai Zhenhua Heavy Industries Co., Ltd. to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content (including the disclosures) of the nancial statements, and
evaluate whether the nancial statements represent the underlying transactions and events in a manner that achievesfair presentation.
(6) Obtain sucient appropriate audit evidence regarding the nancial information of the entities or business activities
within the Company to express an opinion on the nancial statements. We are responsible for the direction, supervisionand performance of the group audit, and bear full responsibility for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit, signicantaudit findings and other matters, including any significant deficiencies in internal control that we identify during ouraudit.We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them in regard to all relationships and other mattersthat may reasonably be thought to aect our independence, and related safeguards (if applicable).From the matters communicated with those charged with governance, we determine those matters that were of mostsignicance in the audit of the nancial statements of the current period and are therefore the key audit matters. Wedescribe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter orwhen, in extremely rare circumstances, we determine that a matter should not be communicated in our report becausethe adverse consequences of doing so would reasonably be expected to outweigh the public interest benets of suchcommunication.
Section X Financial Report
Ernst & Young Hua Ming LLP Certied Public Accountant of China:
(Engagement Partner)Certied Public Accountant of China:
Beijing, China March 28, 2024
ANNUAL REPORT2023
II. Financial Statements
Consolidated Balance Sheet
As at December 31, 2023Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNYItemNoteAs at December 31, 2023As at December 31, 2022Current assets:
Monetary fundsVII (1)5,105,078,4362,397,047,713Settlement provisionsLending fundsHeld-for-trading nancial assetsVII (2)720,594,675877,483,342Derivative nancial assetsVII (3)Notes receivableVII (4)14,122,03156,114,657Accounts receivableVII (5)7,266,298,1027,193,649,855Receivables nancingVII (7)965,569,122439,912,428Advances to suppliersVII (8)1,313,834,063951,212,422Premiums receivableReinsurance accounts receivableReserves for reinsurance contract receivableOther receivablesVII (9)1,245,727,441995,545,297Including: Interest receivable
Dividend receivable8,000,000Financial assets purchased under agreements to resellInventoriesVII (10)24,281,402,17621,513,379,348Contract assetsVII (6)2,779,633,1343,243,073,136Assets held for saleVII (11)Non-current assets due within one yearVII (12)1,341,408,631900,213,411Other current assetsVII (13)476,726,381279,067,341
Total current assets45,510,394,19238,846,698,950Non-current assets:
Disbursement of loans and advancesDebt investmentVII (14)Other debt investmentsVII (15)Long-term receivablesVII (16)1,457,182,4592,402,265,565Long-term equity investmentsVII (17)1,956,257,6222,002,879,925Other equity instrument investmentVII (18)104,859,37473,475,619Other non-current nancial assetsVII (19)Investment propertiesVII (20)414,931,428437,494,135Fixed assetsVII (21)19,990,882,34720,663,113,030Construction in progressVII (22)5,184,520,5344,838,814,052Productive biological assetsOil and gas assetsRight-of-use assetsVII (25)62,630,18011,931,451Intangible assetsVII (26)4,093,419,0883,553,837,771Development expendituresGoodwillVII (27)270,172,367268,245,693Long-term deferred expensesVII (28)1,055,983409,870Deferred income tax assetsVII (29)893,698,896867,941,451Other non-current assetsVII (30)4,924,571,6214,246,061,211
Total non-current assets39,354,181,89939,366,469,773
Total assets84,864,576,09178,213,168,723Current liabilities:
Short-term borrowingsVII (32)4,781,640,7791,793,682,952Borrowings from the Central BankBorrowing fundsHeld-for-trading nancial liabilities
Section X Financial ReportItemNoteAs at December 31, 2023As at December 31, 2022Derivative nancial liabilitiesNotes payableVII (35)5,533,470,5825,401,258,897Accounts payableVII (36)8,616,059,1387,255,123,334Advances from customersContract liabilitiesVII (38)19,230,649,19613,348,150,197Financial assets sold for repurchaseDeposits from customers and interbankActing trading securitiesActing underwriting securitiesPayroll payableVII (39)40,097,39338,074,154Tax payableVII (40)324,641,134238,103,875Other payablesVII (41)1,021,376,2601,314,688,315Including: Interest payable
Dividends payable6,5936,593Fees and commissions payableDividend payable for reinsuranceLiabilities held for saleNon-current liabilities due within a yearVII (43)8,650,700,3896,961,445,218Other current liabilitiesVII (44)Total current liabilities48,198,634,87136,350,526,942Non-current liabilities:
Reserve fund for insurance contractsLong-term borrowingsVII (45)15,105,224,07921,019,572,646Bonds payableIncluding: preferred stock
Perpetual bondLease liabilitiesVII (47)31,548,1847,676,707Long-term payablesVII (48)1,744,502,9831,931,340,734Long-term payroll payableEstimated liabilitiesVII (50)168,217,597168,241,316Deferred incomeVII (51)369,054,982332,419,380Deferred income tax liabilitiesVII (29)133,272,27099,240,972Other non-current liabilitiesVII (52)247,185,330181,805,207Total non-current liabilities17,799,005,42523,740,296,962Total liabilities65,997,640,29660,090,823,904Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)VII (53)5,268,353,5015,268,353,501Other equity instrumentsVII (54)500,000,000500,000,000Including: preferred stock
Perpetual bond500,000,000500,000,000Capital reservesVII (55)4,882,590,7784,842,515,715Less: treasury stockOther comprehensive incomeVII (57)59,000,30224,865,987Special reservesVII (58)10,525,0942,945,560Surplus reservesVII (59)1,711,305,0451,703,918,676General risk preparationUndistributed protsVII (60)3,324,778,0742,825,870,678Total owners' equities attributable to the owners of parent company15,756,552,79415,168,470,117Minority equity3,110,383,0012,953,874,702
Total owners’ equity (or shareholders' equity)18,866,935,79518,122,344,819Total liabilities and owners’ equity (or shareholders' equity)84,864,576,09178,213,168,723Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT2023Balance Sheet of the Parent Company
December 31, 2023Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNYItemNoteAs at December 31, 2023As at December 31, 2022Current assets:
Monetary funds3,759,568,695722,079,840Held-for-trading nancial assets182,724,222239,784,587Derivative nancial assetsNotes receivable56,114,657Accounts receivableXIX (1)19,685,759,15118,014,241,050Receivables nancing638,394,101297,356,630Advances to suppliers1,204,312,3306,860,717,286Other receivablesXIX (2)3,373,418,3591,680,563,614Including: Interest receivable
Dividend receivable315,789,096Inventories21,719,656,26218,530,057,990Contract assets1,854,052,3601,867,489,992Assets held for saleNon-current assets due within one yearOther current assets305,040,708175,036,344Total current assets52,722,926,18848,443,441,990Non-current assets:
Debt investmentOther debt investmentsLong-term receivablesLong-term equity investmentsXIX (3)9,456,761,4359,389,579,244Other equity instrument investment104,859,37473,475,619Other non-current nancial assetsInvestment properties414,931,428437,494,135Fixed assets3,741,477,9473,865,130,627Construction in progress916,537,474647,322,776Productive biological assetsOil and gas assetsRight-of-use assets15,253,22444,765Intangible assets1,393,384,8631,432,796,201Development expendituresGoodwillLong-term deferred expenses124,771Deferred income tax assets871,331,750833,341,377Other non-current assets823,808,086530,196,047
Total non-current assets17,738,470,35217,209,380,791
Total assets70,461,396,54065,652,822,781Current liabilities:
Short-term borrowings4,091,640,7791,269,182,952Held-for-trading nancial liabilitiesDerivative nancial liabilitiesNotes payable5,199,186,7545,252,294,408Accounts payable5,166,087,0233,610,603,937Advances from customers
Section X Financial ReportItemNoteAs at December 31, 2023As at December 31, 2022Contract liabilities18,367,419,23712,525,059,840Payroll payable29,378,56429,189,818Tax payable140,507,38582,609,138Other payables1,384,628,5672,716,399,244Including: Interest payable
Dividends payable6,5936,593Liabilities held for saleNon-current liabilities due within one year8,198,412,5366,152,492,930Other current liabilitiesTotal current liabilities42,577,260,84531,637,832,267Non-current liabilities:
Long-term borrowings12,250,338,71518,447,465,656Bonds payableIncluding: preferred stock
Perpetual bondLease liabilities8,137,322Long-term payablesLong-term payroll payableEstimated liabilities147,187,314154,863,743Deferred income267,369,648257,656,046Deferred income tax liabilitiesOther non-current liabilities5,852,3382,321,173Total non-current liabilities12,678,885,33718,862,306,618Total liabilities55,256,146,18250,500,138,885Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)5,268,353,5015,268,353,501Other equity instruments500,000,000500,000,000Including: preferred stock
Perpetual bond500,000,000500,000,000Capital reserves4,894,907,3484,914,468,683Less: treasury stockOther comprehensive income31,409,33620,882,527Special reserves1,422,294Surplus reserves1,710,796,7721,703,410,403Undistributed prots2,798,361,1072,745,568,782
Total owners’ equity (or shareholders' equity)15,205,250,35815,152,683,896Total liabilities and owners’ equity (or shareholders' equity)70,461,396,54065,652,822,781Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT2023Consolidated Income StatementJanuary to December in 2023Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNYItemNote20232022I. Total operating revenue32,933,263,80230,191,792,987Including: Operating revenueVII (61)32,933,263,80230,191,792,987
Interest incomePremiums earnedFee and commission incomeII. Total operating cost31,689,837,16329,226,104,243Including: operating costsVII (61)28,480,385,79426,145,431,986
Interest expensesFee and commission expenseSurrender valueNet amount of compensation payoutNet reserves for insurance liabilitiesPolicy holder dividend expenseReinsurance expensesTaxes and surchargesVII (62)291,299,625174,759,457Selling and distribution expensesVII (63)211,361,193176,805,664General and administrative expensesVII (64)849,183,436835,690,168Research and development expendituresVII (65)1,311,556,6651,118,337,091Financial expensesVII (66)546,050,450775,079,877Including: interest expenses965,865,8121,038,321,065
Interest income429,793,598413,595,714Plus: other incomesVII (67)99,289,337104,014,204Income from investment (loss expressed with“-”)VII (68)67,909,400204,359,358Including: Income from investment of joint venture and cooperative enterprise78,028,096170,402,945
Income from derecognition of nancial assets measured at amortized cost-115,312,416-20,135,378Exchange gain (loss expressed with“-”)Net exposure hedging gain (loss expressed with“-”)Income from fair value changes (loss expressed with“-”)VII (70)-27,339,814-276,050,580Credit impairment losses (loss expressed with“-”)VII (71)-276,310,095-346,156,434Assets impairment losses (loss expressed with“-”)VII (72)-428,844,200-92,510,638Income from disposal of assets (loss expressed with“-”)VII (73)79,038,66266,186,622III. Operating prots (loss expressed with“-”)757,169,929625,531,276Plus: non-operating incomeVII (74)30,243,96932,139,607Less: non-operating expenditureVII (75)2,256,2292,436,095IV. Total prots (total loss expressed with“-”)785,157,669655,234,788Less: income tax expensesVII (76)138,613,04057,672,440V. Net prots (net loss expressed with“-”)646,544,629597,562,348(I) Classied by business continuity
1. Net prots from ongoing operation (net loss expressed with
“-”)646,544,629597,562,348
2. Net prots from discontinuing operation (net loss expressed with
“-”)(II) Classied by ownership
1. Net prot attributable to the shareholders of parent company (net loss expressed with
“-”)519,978,765371,937,232
2. Minority interests (net loss expressed with
“-”)126,565,864225,625,116
Section X Financial ReportItemNote20232022VI. Net of tax of other comprehensive incomeVII (77)45,425,366122,166,570(I) Net amount of after-tax other comprehensive income attributable to the owners of theparent company
34,134,31594,221,045
1. Other comprehensive income that can't be reclassied into prot and loss10,704,6926,116,237
(1) Remeasure the variation of net indebtedness or net asset of dened benet plan
(2) Other comprehensive income that can't be reclassied into prot and loss in the invested
enterprise under equity method
(3) Fair value change of other equity instrument investments10,704,6926,116,237
(4) Fair value change of enterprise credit risks
2. Other comprehensive income that will be reclassied into prot and loss23,429,62388,104,808
(1) Other comprehensive income that will be reclassied into prot and loss in the invested
enterprise under equity method
-718,40820,743,893
(2) Fair value change of other debt investments
(3) Amount of nancial assets reclassied into other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash ow hedging reserve
(6) Translation reserve24,148,03167,360,915
(7) Others
(II) Net of tax of other comprehensive income attributable to the minority shareholders11,291,05127,945,525VII. Total comprehensive income691,969,995719,728,918
(I) Total comprehensive income belonging to parent company554,113,080466,158,277
(II) Total comprehensive income belonging to minority shareholders137,856,915253,570,641VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share)0.100.07
(II) Diluted earnings per share (Yuan/share)0.100.07
In case of business combination under common control in current period, the net prot realized by the combined partybefore combination was RMB 0, and the net prot realized by the combined party in the previous period was RMB 0.Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT2023
Income Statement of Parent CompanyJanuary to December in 2023Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
ItemNote20232022I. Operating revenueXIX (4)28,449,047,82126,167,200,140Less: operating costsXIX (4)25,824,140,42523,715,294,401Taxes and surcharges215,477,34199,236,620Selling and distribution expenses155,665,223155,895,902General and administrative expenses445,853,080440,171,981Research and development expenditures892,691,771813,395,559Financial expenses454,757,877884,406,720Including: interest expenses712,367,582799,727,505
Interest income81,538,83441,733,102Plus: other incomes38,130,11975,037,357Income from investment (loss expressed with“-”)XIX (5)191,810,563604,019,489Including: Income from investment of joint venture and cooperative enterprise77,665,390170,768,840
Income from derecognition of nancial assets measured at amortized cost-115,312,416-20,135,378Net exposure hedging gain (loss expressed with“-”)Income from fair value changes (loss expressed with“-”)-49,259,201-253,335,714Credit impairment losses (loss expressed with“-”)-248,116,095-274,770,970Assets impairment losses (loss expressed with“-”)-398,239,554-71,850,880Income from disposal of assets (loss expressed with“-”)30,720,4594,769,913II. Operating prots (loss expressed with“-”)25,508,395142,668,152Plus: non-operating income13,763,65512,598,476Less: non-operating expenditure1,660,2301,097,149III. Total prots (total loss expressed with“-”)37,611,820154,169,479Less: income tax expenses-36,251,874-92,432,319IV. Net prots (loss expressed with“-”)73,863,694246,601,798(I) Net prots from ongoing operation (net loss expressed with“-”)73,863,694246,601,798(II) Net prots from discontinuing operation (net loss expressed with“-”)V. Net of tax of other comprehensive income10,526,80929,497,087(I) Other comprehensive income that can't be reclassied into prot and loss10,704,6926,116,237
1. Remeasure the variation of net indebtedness or net asset of dened benet plan
2. Other comprehensive income that can't be reclassified into profit and loss in the
invested enterprise under equity method
3. Fair value change of other equity instrument investments10,704,6926,116,237
4. Fair value change of enterprise credit risks
(II) Other comprehensive income that will be reclassied into prot and loss-177,88323,380,850
1. Other comprehensive income that will be reclassied into prot and loss in the invested
enterprise under equity method
-718,40820,743,893
2. Fair value change of other debt investments
3. Amount of nancial assets reclassied into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash ow hedging reserve
6. Translation reserve540,5252,636,957
7. Others
VI. Total comprehensive income84,390,503276,098,885VII. Earnings per share:
(I) Basic earnings per share (Yuan/share)(II) Diluted earnings per share (Yuan/share)Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
Section X Financial ReportConsolidated Statement of Cash FlowsJanuary to December in 2023Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
ItemNote20232022I. Cash ow from operating activities:
Cash from selling commodities or oering labor38,828,500,43325,267,511,264Net increase of customer deposit and deposit from other banksNet increase of borrowings from central bankNet increase of borrowing funds from other nancial institutionsCash from obtaining original insurance contract premiumNet cash received from reinsurance businessNet increase in the deposits and investment of insuredCash from interest, handling charges and commissionsNet increase of borrowing fundsNet increase of repurchase of business fundsNet cash from acting trading securitiesRefund of tax and levies416,830,589855,636,866Other cash received related to operating activities676,958,575244,003,096Subtotal cash inows from operating activities39,922,289,59726,367,151,226Cash paid for goods purchased and services received30,775,739,27519,831,977,453Net increase of customer loans and advancesNet increase of amount due from central bank and interbankCash paid for original insurance contract claims paymentNet increase of lending fundsCash paid for interest, handling charges and commissionsCash paid for policy dividendCash paid to and for employees2,508,297,7662,574,314,378Taxes and fees paid697,045,919594,993,030Other cash paid related to operating activities757,022,191797,302,342Subtotal cash outows from operating activities34,738,105,15123,798,587,203Net cash ows from operating activities5,184,184,4462,568,564,023II. Cash ows from investment activities:
Cash from investment withdrawal129,548,85417,165,758Cash from investment income234,193,072159,044,219Net cash received from disposal of xed assets, intangible assets and other long-termassets
105,378,15619,391,609Net cash from disposal of subsidiaries and other business unitsOther cash received related to investment activities114,994,970209,457,444Subtotal cash inows from investment activities584,115,052405,059,030Cash paid for purchase of xed assets, intangible assets and other long-term assets746,956,678488,778,059Cash paid for investments18,790,000Net increase in hypothecated loanNet cash paid for obtaining subsidiaries and other business unitsOther cash paid related to investment activitiesSubtotal cash outows from investment activities765,746,678488,778,059Net cash ow from investment activities-181,631,626-83,719,029
ANNUAL REPORT2023ItemNote20232022III. Cash ows from nancing activities:
Cash from absorption of investments170,101,09498,327,900Including: cash received from subsidies’ absorption of minority shareholders’
investment
170,101,09498,327,900Cash received from borrowings26,666,299,56838,626,275,738Other cash received related to nancing activities1,134,318,331618,107,748Cash received from issuance of other equity instruments500,000,000Cash received from issuance of bonds500,000,000Subtotal cash inows from nancing activities27,970,718,99340,342,711,386Cash repayments of amounts borrowed27,644,066,75442,832,240,800Cash paid for distribution of dividends, prots or interest expenses1,080,107,1431,395,285,252Including: dividends and prots paid by subsidiaries to minority shareholders93,141,01058,000,000Other cash paid related to nancing activities1,638,264,999838,344,871Subtotal cash outows from nancing activities30,362,438,89645,065,870,923Net cash ows from nancing activities-2,391,719,903-4,723,159,537IV. Impact of exchange rate movements on cash and cash equivalents46,235,551163,578,103V. Net increase of cash and cash equivalents2,657,068,468-2,074,736,440Plus: beginning balance of cash and cash equivalents2,375,101,4374,449,837,877VI. Ending balance of cash and cash equivalents5,032,169,9052,375,101,437Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
Section X Financial ReportStatement of Cash Flows of the Parent Company
January to December in 2023Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
ItemNote20232022I. Cash ow from operating activities:
Cash from selling commodities or oering labor31,008,944,15022,387,866,565Refund of tax and levies300,080,487635,424,765Other cash received related to operating activities636,768,375225,294,772Subtotal cash inows from operating activities31,945,793,01223,248,586,102Cash paid for goods purchased and services received25,004,851,53221,040,995,998Cash paid to and for employees1,351,747,6711,321,000,912Taxes and fees paid207,703,416123,242,978Other cash paid related to operating activities375,422,856381,273,867Subtotal cash outows from operating activities26,939,725,47522,866,513,755Net cash ows from operating activities5,006,067,537382,072,347II. Cash ows from investment activities:
Cash from investment withdrawal7,801,16517,165,758Cash from investment income661,183,014236,682,551Net cash received from disposal of xed assets, intangible assets and other long-term assets30,720,45818,283,472Net cash from disposal of subsidiaries and other business unitsOther cash received related to investment activitiesSubtotal cash inows from investment activities699,704,637272,131,781Cash paid for purchase of xed assets, intangible assets and other long-term assets179,032,663286,375,311Cash paid for investments132,957,200208,679,973Net cash paid for obtaining subsidiaries and other business unitsOther cash paid related to investment activitiesSubtotal cash outows from investment activities311,989,863495,055,284Net cash ow from investment activities387,714,774-222,923,503III. Cash ows from nancing activities:
Cash from absorption of investmentsCash received from borrowings24,845,294,61936,266,553,328Other cash received related to nancing activities1,015,336,873611,100,376Cash received from issuance of bonds500,000,000Other cash received related to nancing activities500,000,000Subtotal cash inows from nancing activities25,860,631,49237,877,653,704Cash repayments of amounts borrowed26,172,827,57139,402,630,672Cash paid for distribution of dividends, prots or interest expenses747,532,9151,096,677,413Other cash paid related to nancing activities1,370,807,692500,006,220Subtotal cash outows from nancing activities28,291,168,17840,999,314,305Net cash ows from nancing activities-2,430,536,686-3,121,660,601IV. Impact of exchange rate movements on cash and cash equivalents41,581,88675,244,800V. Net increase of cash and cash equivalents3,004,827,511-2,887,266,957Plus: beginning balance of cash and cash equivalents707,377,4463,594,644,403VI. Ending balance of cash and cash equivalents3,712,204,957707,377,446
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT2023
Consolidated Statement of Changes in Owners’ Equity
January-December 2023
Unit: Yuan Currency: CNY
Item
2023
Equity attributable to the owners of the parent company
Minority equityTotal owners’ equity
Paid-in capital(or share capital)
Other equity instruments
Capital reservesLess:
treasurystockOther
comprehensiveincomeSpecialreservesSurplusreservesGeneral riskpreparationUndistributedprots
OthersSub-total
Preferredstock
Perpetual
bondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,842,515,71524,8 65,9872,945,5601,703,918,6762,825,870,67815,168,470,1172,953,874,70218,122,344,819Plus: changes in accounting policiesPrior period error correctionOthers
II. Beginning balance in current year5,268,353,501500,000,0004,842,515,71524,865,9872,945,5601,703,918,6762,825,870,67815,168,470,1172,953,874,70218,122,344,819III. Increase/decrease in the current year (
“-”for
decrease)
40,075,06334,134,3157,579,5347,386,369498,907,396588,082,677156,508,299744,590,976
(I) Total comprehensive income34,134,315519,978,765554,113,080137,856,915691,969,995(II) Owner’s invested and decreased capital40,075,06340,075,063110,464,696150,539,759
1. Common stock invested by the owners59,636,39859,636,398110,464,696170,101,094
2. Capital invested by other equity instrument
holders
3. Amount of share-based payment included in
the owner’s equity
4. Others-19,561,335-19,561,335-19,561,335(III) Prot distribution7,386,369-21,071,369-13,685,000-93,141,013-106,826,013
1. Withdrawal of surplus reserves7,386,369-7,386,369
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders)-93,141,013-93,141,013
4. Others-13,685,000-13,685,000-13,685,000(IV) Internal transfer of owner
’s equity
1. Capital surplus transfer to paid-in capital (or
capital stock)
2. Earned surplus transfer to paid-in capital (or
capital stock)
3. Earned surplus covering the decit
4. Carryforward retained earnings in variation of
dened benet plan
5. Carryforward retained earnings of other
comprehensive income
6. Others
(V) Special reserves7,579,5347,579,5341,327,7018,907,235
1. Amount withdrawn in the current year76,585,29376,585,2935,150,14981,735,442
2. Amount used in the current year-69,005,759-69,005,759-3,822,448-72,828,207(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,882,590,77859,000,30210,525,0941,711,305,0453,324,778,07415,756,552,7943,110,383,00118,866,935,795
Section X Financial Report
Item
2022
Equity attributable to the owners of the parent company
Minority equityTotal owners’ equity
Paid-in capital (or
share capital)Other equity instruments
Capital reservesLess:
treasurystockOther
comprehensiveincomeSpecialreservesSurplusreservesGeneral riskpreparationUndistributed
prots
OthersSub-total
Preferredstock
Perpetual
bondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,842,515,715-69,355,0581,934,6761,679,258,4962,767,511,30114,990,218,6312,659,834,38917,650,053,020Plus: changes in accounting policiesPrior period error correctionOthersII. Beginning balance in current year5,268,353,501500,000,0004,842,515,715-69,355,0581,934,6761,679,258,4962,767,511,30114,990,218,6312,659,834,38917,650,053,020III. Increase/decrease in the current year (
“-”
for decrease)
94,221,0451,010,88424,660,18058,359,377178,251,486294,040,313472,291,799
(I) Total comprehensive income94,221,045371,937,232466,158,277253,570,641719,728,918(II) Owner’s invested and decreased capital98,327,90098,327,900
1. Common stock invested by the owners98,327,90098,327,900
2. Capital invested by other equity instrument
holders
500,000,000500,000,000500,000,000
3. Amount of share-based payment included
in the owner’s equity
4. Others
5. Capital reduced by other equity instrument
holders
-500,000,000-500,000,000-500,000,000
(III) Prot distribution24,660,180-313,577,855-288,917,675-58,000,000-346,917,675
1. Withdrawal of surplus reserves24,660,180-24,660,180
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders)-263,417,675-263,417,675-58,000,000-321,417,675
4. Others-25,500,000-25,500,000-25,500,000(IV) Internal transfer of owner
’s equity
1. Capital surplus transfer to paid-in capital (or
capital stock)
2. Earned surplus transfer to paid-in capital (or
capital stock)
3. Earned surplus covering the decit
4. Carryforward retained earnings in variation
of dened benet plan
5. Carryforward retained earnings of other
comprehensive income
6. Others
(V) Special reserves1,010,8841,010,884141,7721,152,656
1. Amount withdrawn in the current year50,813,28950,813,2892,682,40653,495,695
2. Amount used in the current year-49,802,405-49,802,405-2,540,634-52,343,039(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,842,515,71524,865,9872,945,5601,703,918,6762,825,870,67815,168,470,1172,953,874,70218,122,344,819Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT2023
Statement of Changes in Owners’ Equity of the Parent Company
January-December 2023
Unit: Yuan Currency: CNY
Item
2023
Paid-in capital(or share capital)
Other equity instruments
Capital reserves
Less:
treasurystockOthercomprehensiveincomeSpecial reservesSurplus reserves
UndistributedprotsTotal owners’ equity
PreferredstockPerpetual bondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,914,468,68320,882,5271,703,410,4032,745,568,78215,152,683,896Plus: changes in accounting policiesPrior period error correctionOthersII. Beginning balance in current year5,268,353,501500,000,0004,914,468,68320,882,5271,703,410,4032,745,568,78215,152,683,896III. Increase/decrease in the current year (
“-” for decrease)-19,561,33510,526,8091,422,2947,386,36952,792,32552,566,462
(I) Total comprehensive income10,526,80973,863,69484,390,503(II) Owner’s invested and decreased capital-19,561,335-19,561,335
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders
3. Amount of share-based payment included in the owner
’s
equity
4. Others-19,561,335-19,561,335(III) Prot distribution7,386,369-21,071,369-13,685,000
1. Withdrawal of surplus reserves7,386,369-7,386,369
2. Distribution of owners (or shareholders)
3. Others-13,685,000-13,685,000(IV) Internal transfer of owner
’s equity
1. Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the decit
4. Carryforward retained earnings in variation of defined
benet plan
5. Carryforward retained earnings of other comprehensive
income
6. Others
(V) Special reserves1,422,2941,422,294
1. Amount withdrawn in the current year41,377,20841,377,208
2. Amount used in the current year-39,954,914-39,954,914(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,894,907,34831,409,3361,422,2941,710,796,7722,798,361,10715,205,250,358
Section X Financial Report
Item
2022
Paid-in capital
(or share capital)
Other equity instruments
Capital reserves
Less:
treasury
stockOthercomprehensive
incomeSpecial reservesSurplus reserves
UndistributedprotsTotal owners’ equity
Preferred
stockPerpetual
bondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,914,468,683-8,614,5601,678,750,2232,812,544,83915,165,502,686Plus: changes in accounting policies
Prior period error correctionOthersII. Beginning balance in current year5,268,353,501500,000,0004,914,468,683-8,614,5601,678,750,2232,812,544,83915,165,502,686III. Increase/decrease in the current year (
“-”for
decrease)
29,497,08724,660,180-66,976,057-12,818,790
(I) Total comprehensive income29,497,087246,601,798276,098,885(II) Owner’s invested and decreased capital
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders
500,000,000500,000,000
3. Amount of share-based payment included in the
owner’s equity
4. Others
5. Capital reduced by other equity instrument holders
-500,000,000
-500,000,000
(III) Prot distribution24,660,180-313,577,855
-288,917,675
1. Withdrawal of surplus reserves
24,660,180-24,660,180
2. Distribution of owners (or shareholders)-263,417,675-263,417,675
3. Others
-25,500,000-25,500,000
(IV) Internal transfer of owner
’s equity
1. Capital surplus transfer to paid-in capital (or capital
stock)
2. Earned surplus transfer to paid-in capital (or capital
stock)
3. Earned surplus covering the decit
4. Carryforward retained earnings in variation of dened
benet plan
5. Carryforward retained earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year29,362,55929,362,559
2. Amount used in the current year
-29,362,559-29,362,559
(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,914,468,68320,882,5271,703,410,4032,745,568,78215,152,683,896Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT2023III. Company prole
1. Company prole
√Applicable? Not ApplicableShanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to as“the Company”) is a joint-stock company limitedestablished on September 8, 1997 through restructuring Shanghai Zhenhua Port Machinery Company Limited (hereinafterreferred to as“Zhenhua Company”). Both the registration place and the address of the headquarters are in Shanghai City, P.R. China.As approved by ZWFZ (1997) No.42 Document issued by the Securities Commission under the State Council, the Companyissued 100 million domestically-listed shares held by the foreign investors (B-share) from July 15, 1997 till July 17, 1997.The B-shares were listed for trading at Shanghai Stock Exchange on Aug. 5, 1997.As approved by ZJFXZ (2000) No. 200 Document of China Securities Regulatory Commission, the Company additionallyissued of 88 million common shares (RMB denominated) (A-share) held by the domestic investors in December 2000. TheA-shares were listed for trading at Shanghai Stock Exchange on Dec. 21, 2000.As approved by ZJFXZ (2004) No.165 Document of China Securities Regulatory Commission, the Company additionallyissued 114,280,000 A-shares held by the domestic investors on December 23, 2004. The additionally issued A-shares werelisted at Shanghai Stock Exchange respectively for trading on December 31, 2004 and January 31, 2005.As approved by ZJFXZ (2007) No. 346 Document of China Securities Regulatory Commission, the Company additionallyissued 125,515,000 A-shares held by the domestic investors on October 15, 2007. The additionally issued A-shares werelisted at Shanghai Stock Exchange for trading on October 23, 2007 and January 23, 2008 respectively.As approved by ZJXKZ (2009) No.71 Document of China Securities Regulatory Commission, the Company privately placed169,794,680 A-shares on Sept. 22, 2008 to its controller China Communications Construction Co., Ltd. (hereinafter referredto as“China Communications Corporation”). A-shares privately placed were the tradable shares with limited tradingconditions. From Mar. 20, 2012 on, the term of trading limitation expired for above-mentioned A-shares which were listedat Shanghai Stock Exchange for trading.By December 31, 2023, after all issuances of the shares and bonus shares distributed in the past year, the total shares ofthe Company amounted to 5,268,353,501 shares, par value per share was RMB 1. The share capital totaled up to RMB5,268,353,501.On December 18, 2005, China Road and Bridge Construction Group General Company and the Company’s formercontrolling shareholder China Harbor Construction (Group) General Company were merged into China CommunicationsConstruction (Group) Co. Ltd after restructuring (hereafter referred to as“CCCG”). In accordance with the Ocial Replyto Overall Reorganization and Overseas-listed and Domestically-listed Share of China Communications Construction Co.,Ltd. (GZGG [2006] No.1063 Document) by State-owned Assets Supervision and Administration Commission of the StateCouncil on Aug. 16, 2006, the reorganization proposal of China Communications Construction (Group) Co., Ltd approvedin the Official Reply to the Issues Concerning Management of State-owned Stock Equity of China CommunicationsConstruction Co., Ltd. (GZCQ [2006] No.1072 Document) on Sept. 30, 2006 and the Ocial Reply to Approval of ChinaCommunications Construction Co., Ltd.’s Announcement of Purchase Report of Road and Bridge Construction Co., Ltd.and Shanghai Zhenhua Port Machinery (Group) Co., Ltd. and Exemption of Their Obligations for Purchase by Oer (ZJGSZ[2006] No. 227 Document), CCCG solely initiated the incorporation of China Communications Construction Co., Ltd. onOct. 8, 2006 and invested the stock equity of the Company held into the newly incorporated China Communications Co.,Ltd. With the completion of reorganization, China Communications Co., Ltd thus became the controlling shareholder ofthe Company.In 2016, the Company was granted the Uniform Social Credit Code of 91310000607206953D.On July 18, 2017, the board of directors of China Communications Construction Co., Ltd. discussed and approvedthe Proposal for Transfer of Some Shares of Shanghai Zhenhua Heavy Industries (Group) Co., Ltd by Agreement andAssociated Transaction and agreed to transfer totally 1,316,649,346 shares of this Company held by it to CCCG and
Section X Financial Report
CCCG (Hong Kong) Holdings Co., Ltd. (hereinafter referred to as“CCCG Hong Kong”), accounting for 29.990% of the totalshares of this Company, after that, China Communications Construction Co., Ltd. held 16.239% of the stock equity of thisCompany. The transfer and registration of shares was accomplished on December 27, 2017. On the date of the transferof shares, CCCG directly held 552,686,146 A-shares of this Company (accounting for 12.589% of the total shares of thisCompany), indirectly held 763,963,200 B-shares of this Company through CCCG (Hong Kong) (accounting for 17.401%of the total shares of the Company) and held 712,951,703 A-shares of this Company through China CommunicationsConstruction Co., Ltd. (accounting for 16.239% of the total shares of this Company), as a result, it became the controllingshareholder of the Company.The Company and its subsidiaries (hereinafter collectively referred to as“the Group”) were mainly engaged in design,construction, installation and contracting of large-sized port handling system and equipment, offshore heavy-dutyequipment, engineering machinery, engineering vessel and large-sized metal structural members and their parts andcomponents; sales of the self-produced products; international shipment by available special transportation vessel andspecialized contracting for steel structure engineering.The nancial statements have been approved by the resolution of the Board of Directors of the Company on March 28,2024.
IV. Basis of preparation for nancial statements
1. Basis of preparation
This nancial statements take continuous operation as preparation basic.
2. Basis of preparation
√Applicable? Not ApplicableThese financial statements are prepared on the historical cost principle, except for some financial instruments. If theassets are impaired, corresponding impairment provision should be accrued according to relevant provisions.V. Principal accounting policies and accounting estimatesSpecic accounting policies and accounting estimates tips√Applicable? Not ApplicableThe Group determines the specific accounting policies and accounting estimates based on actual production andoperation characteristics, which are mainly reflected in the inventory valuation methods, income recognition andmeasurement and so on.
1. Statement on compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company meet the requirements of the Accounting Standards for BusinessEnterprises, and truly and completely reect the nancial position, operating results, changes in shareholders’equity andcash ows of the Company.
2. Accounting period
The Company adopts calendar year as the accounting year, which commences on January from the 1, and ends onDecember 31 of each year.
3. Operating cycle
?Applicable√ Not Applicable
ANNUAL REPORT2023
4. Functional currency
RMB is the recording currency of the Group and also the currency used in the financial statements. Unless otherwisespecied, the nancial statements are presented in RMB.The subsidiaries, joint ventures and associates under the Group shall, on the basis of the main economic environmentin which they operate, decide their own recording currency, and convert them into RMB when preparing financialstatements.
5. Determination method and selection basis of signicance standards
√Applicable? Not ApplicableItemSignicance standards
Significant receivables with provision for baddebts accrued on an individual basis
The amount of provision accrued on an individual basis accounts for more than 10% of the total baddebts provision of various receivables and the amount is greater than RMB 40 millionOther signicant receivables with provision forbad debts accrued on an individual basis
The amount of provision accrued on an individual basis accounts for more than 10% of the total baddebt provision of various other receivables and the amount is greater than RMB 40 millionSignificant recovery and reversal of bad debtprovision for receivables
The amount of individual recovery or reversal accounts for more than 10% of the total amount of variousreceivables and the amount is greater than RMB 40 millionSignicant actual write-o receivables
The amount of individual write-o accounts for more than 10% of the total bad debt provision of variousreceivables and the amount is greater than RMB 40 millionSignificant changes in the book value ofcontract assets
The amount of change in the book value of contract assets accounts for more than 30% of the balanceof contract assets at the beginning of the periodSignificant contractual liability with the agingover more than 1 year
An individual contractual liability with the aging over 1 year accounts for more than 10% of the totalcontract liabilities and the amount is greater than RMB 100 millionSignificant changes in the book value ofcontractual liability
The amount of change in the book value of contractual liability accounts for more than 30% of thebalance of contractual liability at the beginning of the periodSignicant accounts payable
An individual account payable with the aging over 1 year accounts for more than 10% of the totalaccounts payable and the amount is greater than RMB 100 millionOther siginicant payables
An individual other account payable with the aging over than 1 year accounts for more than 10% of thetotal accounts payable and the amount is greater than RMB 100 millionSignicant construction in progressThe budget of a single project is greater than RMB 300 millionSignicant estimated liabilities
Estimated liabilities of a single type account for more than 10% of the total estimated liabilities and theamount is greater than RMB 100 millionMajor non-wholly-owned subsidiaries
The net assets of a subsidiary account for more than 5% of the net assets of the group, or the minorityinterests of a single subsidiary account for more than 1% of the net assets of the group and the amountis greater than RMB 100 millionSignicant capitalized R&D projects
The ending balance of a single project accounts for more than 10% of the ending balance ofdevelopment expenditure and the amount is greater than RMB 100 millionSignicant outsourced research projectsA single project accounts for more than 10% of the total R&D investmentSignicant contract changes
The amount of changes/adjustments accounts for more than 30% of the original contract amount, andthe amount of impact on the current period’s revenue accounts for more than 1% of the total revenue ofthe current periodSignicant investment activities
An individual investment activity accounts for more than 10% of the total cash inflows or outflowsreceived or paid for investment activities And the amount is greater than RMB 300 millionEquity in joint ventures and associates
The book value of long-term equity investment in a single investee accounts for more than 5% of thegroup’s net assets and the amount is greater than RMB 100 million, or the investment prot and lossof long-term equity investment under the equity method accounts for more than 10% of the group’sconsolidated net protSignicant subsidiaries
The net assets of a subsidiary account for more than 5% of the group’s net assets, or the net prot of asubsidiary accounts for more than 10% of the group’s consolidated net protMajor activities not involving current cashreceipts and payments
Activities that do not involve current cash receipts and payments, and have an impact on currentstatements greater than 10% of net assets, or are expected to have an impact on future cash flowsgreater than 10% of the corresponding total cash inows or outows
Section X Financial Report
6. Accounting treatment of business combination under common control and not under common control
√Applicable? Not ApplicableBusiness combination under common controlThe business combination under common control is a business combination in which all of the combining enterprisesare ultimately controlled by the same party or the same parties both before and after the business combination and onwhich the control is not temporary.The assets and liabilities that the combining party obtains in a business combination under common control(includingthe goodwill formed by the acquisition of the combined party by the ultimate controlling party), are subject to thecorresponding accounting treatment in accordance with the carrying amount in the nancial statements of the ultimatecontrolling party on the combination date. The difference between the carrying amount of the net assets obtainedfrom the combination and the carrying amount of the consideration paid (or total par value of the shares issued) forthe combination is treated as an adjustment to capital premium in the capital reserves and the capital reserves carriedout under the former system. If the capital premium is not sucient to absorb the dierence, the remaining balance isadjusted against retained earnings.Business combination not under common controlThe business combination not under common control is a business combination in which all of the combining enterprisesare not controlled by the same party or the same parties before and after the combination.Regarding consolidation not under the same control, the recognizable assets, liabilities and contingent liabilities of theseller are measured upon fair value on the purchase day. The balance of the consolidation costs greater than the fair valueof the recognizable net assets of the seller is conrmed as goodwill, and subsequently measured at cost less accumulatedimpairment losses. In case the consolidation costs are less than the fair value of the recognizable net assets of the seller,the fair value of all recognizable assets, liabilities and contingent liabilities of the seller, and the measurement of theconsolidation costs is re-examined; the balance between the consolidation costs less than the fair value of recognizablenet assets of the seller after the re-examination is recognized in current prots and losses.
7. Judgment criteria of control and preparation method of consolidated nancial statements
√Applicable? Not ApplicableThe consolidation scope of the consolidated financial statements is determined based on control and includes thenancial statements of the Company and all of its subsidiaries. Subsidiary refers to the entity controlled by the Company(including separable parts of enterprises and the invested entity as well as structured entities controlled by the Company).If and only if the three elements below are met, it can be deemed that an investor controls an invested party: the investorpossesses the power over the invested party; the investor is entitled to changeable returns due to participation in relatedactivities of the invested party; the investor has the ability to inuence the amount of return by exercising its power overthe invested party.If the accounting policies or accounting periods adopted by the subsidiary and the Company are inconsistent, whenpreparing the consolidated nancial statements, the necessary adjustments shall be made to the subsidiary’s nancialstatements based on the accounting policies and accounting periods of the Company. The assets, liabilities, interests,incomes, expenses and cash ow incurred by transactions among the Group are oset in full upon consolidation.If the current losses borne by the minority shareholders of the subsidiary exceed the shares held by the minorityshareholders in the initial shareholders’ equity of the subsidiary, the balance still osets the minority’s equity.For the subsidiaries acquired in business combination not under common control, the operating results and the cashows of the acquiree shall be included in the consolidated nancial statements on the date of acquisition of control tillthe termination of control. When preparing the consolidated nancial statements, the nancial statements of subsidiariesshall be adjusted based on the fair value of various identiable assets, liabilities and contingent liability conrmed on theacquisition date.For the subsidiaries acquired in business combination under common control, the operating results and the cash ows
ANNUAL REPORT2023
of the combined party shall be included in the consolidated nancial statements at the beginning of the combinationperiod. When preparing the consolidated nancial statements, relevant items of the previous nancial statements shallbe adjusted and the reporting entity formed after the consolidation is regarded as existed since the ultimate controllingparty begins to implement control.If changes in the relevant facts and circumstances lead to changes in one or more control elements, the Group will re-evaluate whether or not the investee is controlled.Without lose of the control right, change of the minority equity is deemed as capital transaction.
8. Classication of joint venture arrangement and methodsof joint operation accounting treatment
?Applicable√ Not Applicable
9. Recognition criteria of cash and cash equivalents
Cash is the Group’s cash on hand and the deposits that can be readily drawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group that are readily convertible to known account of cash and which aresubject to an insignicant risk of changes in value.
10. Foreign currency transactions and transaction of nancial statements denominated in foreign currency
√Applicable? Not ApplicableIn the case of a foreign currency transaction, the Group translates the amount of foreign currency into the amount of therecording currency.At the time of initial recognition, the amount of foreign currency transaction shall be translated into the amount of therecording currency at the spot rate of the transaction date (unless exchange rate fluctuations make the use of suchexchange rate inappropriate, in which case the spot exchange rate on the transaction date will be used for conversion),but the capital invested by the investor in a foreign currency shall be converted using the spot exchange rate on thetransaction date. On the date of balance sheet, the currency exchange rate of the currency denominated items shall betranslated at the spot rate on the date of balance sheet. The transaction dierence of settlement and monetary itemsarising therefrom, in addition to the dierence arising from foreign currency special borrowing relating to the assets ofwhich the purchase and construction conform to the capitalized conditions, which shall be handled in accordance withthe principle of capitalization of borrowing costs, shall be included in the current profit or loss. The foreign currencynon-currency items calculated on historical cost basis are still translated at exchange rate at the initial recognition notchanging the amount of its recording currency. The foreign currency non-monetary items measured at fair value shall betranslated at the spot rate on fair value determination date, and the dierence arising therefrom shall be included in thecurrent prot or loss or other comprehensive income according to the nature of the non-monetary items.In the case of overseas business, the Group translates its recording currency into RMB in preparing the financialstatements: for assets/liabilities in the balance sheet, spot exchange rate on the date of balance sheet is used fortranslation. As for the items under the shareholders’equity, except for those under“undistributed prots”, other itemsare translated using the spot exchange rate at the time of occurrence; the income and expense items in the incomestatement shall be translated at the spot exchange rate of the transaction. The conversion dierence of foreign currencystatements arising from above translation shall be recognized as other comprehensive income. When disposing overseasoperations, other comprehensive income related to the overseas operation shall be transferred into the current protsand losses, partial disposal shall be calculated according to the proportion of disposal.Foreign currency cash ows shall be translated at the spot exchange rate on the day of occurrence of the cash ow. Cashows from foreign subsidiaries are translated at the average exchange rate for the period in which the cash ows occur(unless exchange rate uctuations make translation at that rate inappropriate, in which case the exchange rate is the spotrate on the day of occurrence of the cash ow). Eect of changes in exchange rate on cash amount is shown separately inthe cash ow statements as an adjustment item.
Section X Financial Report
11. Financial instruments
√Applicable? Not ApplicableFinancial instrument is the contract that forms the nancial assets of an enterprise and the nancial liabilities or equityinstruments of the other entities.Recognition and de-recognition of nancial instrumentsThe Group recognizes a nancial asset or nancial liability when becoming a party to a nancial instrument contract.Once the following conditions are satised, the Group will de-recognize nancial assets (or part of nancial assets or of aportfolio of similar nancial assets), i.e., writing o from its account and balance sheet:
(1) The right to receive cash ows from nancial assets expires;
(2) The right to receive the cash ow from nancial asset has been transferred, or have assumed the obligation in the
“pass-through agreement”to pay the collected cash ow timely to the third party in full; and has transferred substantiallyalmost all the risks and rewards of ownership of the nancial asset, or although does not transfer or retain substantiallynearly all of the risks and rewards of ownership of the nancial asset, but has given up the control over the nancial asset.In the event that the liability of a nancial liability has been fullled, cancelled or expired, the nancial liabilities shall bede-recognized. If the existing nancial liability is replaced by the same creditor with another nancial liabilities of virtuallyentirely dierent terms, or the terms of the existing liabilities are almost entirely modied substantially, such substitutionsor modications will be handled as the derecognition of the original liability and the recognition of new liabilities, andthe dierence will be included in current prot or loss.In case of trading nancial assets in the conventional way, such nancial assets will be recognized and de-recognizedon the trading day. Trading financial assets in the conventional way refers to purchasing or selling financial assets inaccordance with the terms and conditions of the contract, and delivering nancial assets within the time limit prescribedin the law or the prevailing practice in accordance with the terms and conditions of the contract. Trading day is the dateon which the Group commits to buy or sell nancial assets.Classication and measurement of nancial assetsAt the initial recognition, the Group’s nancial assets, based on the Group’s management model of nancial assets andthe contract cash flow characteristics of financial assets, are classified as financial assets measured at amortized cost,nancial assets measured at fair value through the other comprehensive income and nancial assets measured at fairvalue through the current prot or loss.Financial assets are measured at fair value at initial recognition, while the accounts receivable or notes receivable arisingfrom sales of goods or rendering of services, excluding the signicant nancing composition or the nancial compositionfor over one year, are initially measured at the transaction price.For financial assets measured at fair value through the current profit or loss, relevant transaction costs are directlyincluded in the current prot or loss, while the transaction costs relevant to other nancial assets are included in the initialrecognition amount.The subsequent measurement of nancial assets depends on the classication thereof:
Investment in debt instruments measured at amortized costFinancial assets simultaneously meet the following conditions are classied as the nancial assets measured at amortized cost:
the management model of such nancial assets aims at the collection of contract cash ows; according to the terms in thecontract for such nancial assets, the cash ows generating on the special date are paid at the interest for the principal and theunpaid principal. Such nancial assets are recognized as interest income by the eective rate method, and the gains or lossesfrom the derecognition, modication or impairment thereof are included in the current prot or loss.Investment in debt instruments measured at fair value through other comprehensive incomeIf nancial assets meet the following conditions at the same time, the Group classies them as nancial assets at fair valuethrough other comprehensive income: the Group’s business model for the management of the nancial assets is aimed
ANNUAL REPORT2023
at both the collection of contract cash ow and the sale of the nancial assets; the contractual terms of the nancial assetstipulate that the cash ow generated at a particular date is only the payment of the principal and interest based on theoutstanding principal amount. The interest income of such nancial assets is recognized by the eective interest method.At derecognition of nancial assets, the accumulated gains or losses previously included in other comprehensive incomeare transferred from the other comprehensive income to the current prot or loss.Investment in equity instruments measured at fair value through the other comprehensive incomeThe Group irrevocably chooses to designate some non-trading equity instruments as the nancial assets measured atfair value through the other comprehensive income, and only include the relevant dividends revenue (except for thatpartially recovered as the investment cost) in the current prot or loss, and the subsequent changes in fair values in theother comprehensive income, without the provision for impairment. At derecognition of nancial assets, the accumulatedgains or losses previously included in other comprehensive income are transferred from the other comprehensive incometo the retained earnings.Financial assets measured at fair value through the current prot or lossThe nancial assets other than the nancial assets measured at amortized cost and the nancial assets measured at fairvalue through the other comprehensive income are classied as the nancial assets measured at fair value through theother comprehensive income. For such nancial assets, the subsequent measurement is made at fair value, and changesin fair value are included in the current prot or loss.Classication and measurement of nancial liabilitiesAt the initial recognition, the Group’s nancial liabilities are classied as: nancial liabilities measured at fair value throughthe current prot or loss and nancial liabilities measured at amortized cost. For nancial liabilities measured at fair valuethrough the current prot or loss, relevant transaction costs are directly included in the current prot or loss, while thetransaction costs relevant to nancial liabilities measured at amortized cost are included in the initial recognition amount.The subsequent measurement of nancial liabilities depends on the classication thereof:
Financial liabilities measured at fair value through the current prot or lossFinancial liabilities measured at fair value through the current prot or loss include the trading nancial liabilities (includingthe derivative instruments belonging to nancial liabilities), and the nancial liabilities measured at fair value through thecurrent prot or loss. The subsequent measurement of the trading nancial liabilities (including the derivative instrumentsbelonging to nancial liabilities) is made at fair value, and changes in fair value are included in the current prot or loss.For the financial liabilities measured at fair value through the current profit or loss, the subsequent measurement ismade at fair value, and the changes in fair value are included in the current prot or loss except that the changes in fairvalue caused by the changes in the Group's credit risks are included in the other comprehensive income; if including thechanges in fair value caused by the changes in the Group's credit risks in the other comprehensive income may causeor exacerbate the accounting mismatch in prot or loss, the Group will include all changes in fair value (including theamounts aected by the changes in the Group’s credit risks) in the current prot or loss.Financial liabilities measured at amortized costThe subsequent measurement of such nancial liabilities is made at amortized cost by the eective rate method.Impairment of nancial instrumentsBased on the expected credit losses, the Group makes the provision for impairment and recognizes the loss provisions forthe nancial assets measured amortized cost and the investment in debt instruments measured at fair value through theother comprehensive income.For the receivables excluding significant financing component, the Group measures the loss provision based on theamount equivalent to the expected credit loss over the whole duration by the simplied measurement method.Except for the above financial assets subject to the simplified measurement method, on each balance sheet date,the Group makes assessment on whether the credit risk in nancial assets has had signicant increase after the initialrecognition. If the credit risk does not signicantly increase after the initial recognition, standing at the rst level, theGroup will measure the loss provision based on the amount of expected credit loss over the next 12 months , and
Section X Financial Reportcalculate the interest income based on the book balance at the eective interest rate; if the credit risk has signicantlyincreased after the initial recognition without any credit impairment, standing at the second level, the Group will measurethe loss provision based on the amount equivalent to the expected credit loss over the whole duration; in case of anycredit impairment after the initial recognition, standing at the third level, the Group will measure the loss provision basedon the amount of expected credit loss over the whole duration, and calculate the interest income based on the amortizedcost at the eective interest rate. For nancial instruments only with relatively low credit risk on the balance sheet date,the Group assumes that such credit risk does not signicantly increase after the initial recognition.The Group evaluates the expected credit loss of nancial instruments individually and by portfolio. After taking the creditrisk characteristics of dierent customers into account, based on common risk characteristics, the Group evaluated theexpected credit loss on accounts receivable and contract assets by the aging portfolio. The Group determined the agingof accounts receivable based on the date on which the accounts receivable were recorded. Except for the aforementionedfinancial instruments for which expected credit losses were assessed by portfolio, the Group assessed their expectedcredit losses individually. The Group recognized accounts receivable and contract assets of customers who encounterednancial diculties or have contract disputes as assets for provision accrued on an individual basis. The basis for makingprovisions by portfolio was to classify customers with similar credit risk characteristics into the same portfolio based onthe nature of the customers.For the Group’s disclosure of the judgment standards for signicant increase of credit risk and denition of assets withcredit impairment, see Note V for details.The factors reected in the Group’s approach to measuring expected credit losses on nancial instruments include theunbiased probability weighted average amount determined by evaluating a range of possible outcomes, the time valueof money, and reasonable and substantiated information about past events, current conditions and projections of futureeconomic conditions that is available at the balance sheet date without undue additional cost or eort.When the Group ceases to expect reasonably the contract cash ows of nancial assets which can be recovered in wholeor in part, the Group will directly write o the book balance of such nancial assets.Financial instrument osetFinancial assets and nancial liabilities are presented in the balance sheet at the net amount after mutual oset when thefollowing conditions are met simultaneously: possess the legal right to oset the recognized amount and such right iscurrently executable; intend to settle at net amount, or cash such nancial assets or liquidate such nancial liabilities.Transfer of nancial assetsIf the Group has transferred nearly all the risks and rewards associated with the ownership of financial assets to thetransferee, such nancial assets will be de-recognized; if the Group retains nearly all the risks and rewards associated withthe ownership of nancial assets, such nancial assets will be continuously recognized.If the Group neither transfers nor retains nearly all the risks and rewards associated with the ownership of the nancialassets, the following treatments will be adopted based on dierent circumstances: if the Group has given up its controlover the financial assets, the financial assets will be derecognized, and the assets and liabilities arising therefrom willbe recognized; if the Group does not give up its control over the nancial assets, the nancial assets will be recognizedto the extent of its continuing involvement in the transferred financial assets, while relevant liabilities are recognizedaccordingly.
12. Notes receivable
?Applicable√ Not Applicable
13. Accounts receivable
?Applicable√ Not Applicable
14. Receivables nancing
?Applicable√ Not Applicable
ANNUAL REPORT2023
15. Other receivables
?Applicable√ Not Applicable
16. Inventories
√Applicable? Not ApplicableInventory categories, delivery pricing methods, inventory management systems, and amortization methods for low-valueconsumables and packaging materials√Applicable? Not ApplicableInventories include the raw materials, outsourcing components and parts, goods in process and stock commodities.Inventories are initially measured at the cost. The inventory cost includes the procurement cost, processing cost and othercost. The actual cost of raw materials in transit is determined by the weighted average method. The actual cost of nishedproducts in transit is determined by the weighted average method and individual valuation method.Perpetual inventory system is adopted for inventories.Contract performance cost classied as current assets is detailed in inventories.Method of recognizing and accruing provision for inventory depreciation√Applicable? Not ApplicableOn the balance sheet date, the inventory is measured at its cost or its net realizable value, whichever is lower; if the costis higher than the net realizable value, the provision for inventory depreciation will be made and included in the currentprot or loss. The net realizable value, in the routine activities, refers to amount of the estimated selling price of inventoryminus the estimated cost to completion, estimated selling expense and relevant taxes and surcharges. At the time ofmaking the provision for inventory depreciation, the provision for depreciation of raw materials is made by category, andthat of goods in process and stock commodities is made by each single inventory item.The portfolio categories and determination basis for making accruing provision inventory depreciation according to theportfolio, and the determination basis for the net realizable value of dierent categories of inventory?Applicable√ Not ApplicableThe calculation method and determination basis of the net realizable value of inventory based on inventory aging?Applicable√ Not Applicable
17. Contract assets
√Applicable? Not ApplicableRecognition method and criteria of contract assets√Applicable? Not ApplicableThe Group presents contract assets or liabilities in the balance sheet according to the relationship between the fulllmentof performance obligations and customer payments. After osetting the contract assets and contract liabilities under thesame contract, the Group presents them in net amount.Contract assetsContract assets refer to the right to receive consideration for goods or services transferred to customers, and the rightdepends on factors other than the passage of time.For details of the Group’s determination and accounting treatment method of expected credit loss of contract assets,please refer to Note V (11).Determination and accounting treatment of the expected credit loss of contract assets?Applicable√ Not Applicable
Section X Financial ReportPortfolio categories and determination basis for provisions for bad debts based on credit risk characteristics?Applicable√ Not ApplicableAging calculation method based on aging recognition of credit risk characteristics portfolio?Applicable√ Not ApplicableJudgment criteria for determination of provision accrued on an individual basis based on the provision for bad debtsaccrued on an individual basis?Applicable√ Not Applicable
18. Held-for-sale non-current assets or disposal groups
?Applicable√ Not ApplicableRecognition criteria and accounting treatment methods for held-for-sale non-current assets or disposal groups?Applicable√ Not ApplicableRecognition criteria and presentation methods for discontinuing operation?Applicable√ Not Applicable
19. Long-term equity investments
√Applicable? Not ApplicableLong-term equity investments include the equity investments in subsidiaries, joint ventures and associates.Long-term equity investments are initially measured at the initial investment cost. The initial investment cost of a long-term equity investment acquired through the business combination under common control is recognized at bookvalue of owners’equity acquired from the combinee on the combination date in the consolidated nancial statementsof the ultimate controller; the difference between the initial investment cost and the book value of the combinationconsideration is used to adjust the capital reserves (if the capital reserves are insucient to oset, the retained earningswill be oset).The initial investment cost of a long-term equity investment acquired through business combination not under commoncontrol is recognized at the combination cost (if the business combination not under common control is realizedthrough several transactions by step, the sum of the book value of the equity investment of the acquiree held before theacquisition date and the cost of investment newly added on the acquisition date is recognized as the initial investmentcost). For long-term equity investments acquired not through business combination, their initial investment costs aredetermined by the following ways: if the long-term equity investment is acquired through cash payment, the initialinvestment cost will be the sum of the acquisition price actually paid and the costs, taxes and other necessary costs,which are directly relevant to the long-term equity investment; if the long-term equity investment is acquired by issuingequity securities, the initial investment cost will be the fair value of the equity securities issued.The long-term equity investments where the Company could control the investee shall be accounted in individualnancial statements of the Company under the cost method. Control means the power owned over the investee andenjoys the variable return through participating in activities related to the investee, and has the ability to aect its returnby using the power over the investee.Under the cost method, long-term equity investments are valuated at initial investment cost. The Company shall increaseor recover the investment to adjust the cost of long-term equity investments. Cash dividends or profits declared anddistributed by the investee should be recognized as investment income in the current period.If the Group has joint control over or signicant inuence on the investees, long-term equity investments are accountedfor with the equity method. Joint control refers to the control shared over an arrangement in accordance with the relevantstipulations, and the decision-making of related activities of the arrangement should not be made before the partysharing the control right agrees the same. Signicant inuence refers to the power to participate in making decisions onthe nancial and operating policies of the investee, but not the power to control, or jointly control, the formulation of
ANNUAL REPORT2023
such policies with other parties.For long-term equity investments measured under the equity method, if the initial investment costs are higher than theinvestor's attributable share of the fair value of the investee's identiable net assets, the initial costs of the long-termequity investments shall be recognized; if the initial investment costs are lower than the investor's attributable share ofthe fair value of the investee's identiable net assets, the dierence shall be recognized in current prot and loss and atthe same time the adjustment will be made to the initial costs of the long-term equity investments.Where the equity method is adopted, after the long-equity investments are acquired, the Company shall, according to theshares of net prot and loss and other comprehensive income realized by the investee which the Company shall enjoy orbear, recognize the prot and loss on the investments and other comprehensive income and adjust the book value of thelong-term equity investments. When recognizing the share of net prot or loss of the investee that the Group shall enjoy,based on fair value of various identiable assets and others of the investee on acquisition and according to accountingpolicies and accounting periods of the Group, the Group shall write o the part of incomes from internal transactions withassociates and joint ventures which are attributable to the investor according to the shareholding ratio (but the loss frominternal transactions is the asset impairment loss, its total amount shall be recognized) and then recognize the prot andloss on investments on such basis, except those assets investments or sale constitute business. The Group shall, in thelight of the prots or cash dividends that the investee declares to distribute, calculate the part it should share and reducethe book value of the long-term equity investment correspondingly. Recognition of the net loss in the investee shall bewithin the limit that the book value of long-term equity investments and other long-term interests which substantiallyform the net investment in the investee are reduced to zero, unless the Group is obliged to bear extraneous losses; Forother changes in shareholder's equity of the investee excluding net losses or profits, other comprehensive income orprot distribution, the book value of long-term equity investments will be adjusted and included in shareholder's equity.
20. Investment properties
(1). If the cost measurement model is adopted:
Depreciation or amortization methodInvestment property refers to the real estate held for generating rent and/or capital appreciation.The investment property shall be initially measured at cost. Subsequent expenses related to investment properties, ifthe economic benets associated are likely to ow in and its cost can be measured reliably, should be recorded in thecost of investment property. Otherwise, such subsequent expenses should be included in current prots or losses uponoccurrence.The subsequent measurement of an investment property shall be conducted by the Group under the cost method, andthe land use right and buildings shall be amortized and depreciated according to the expected useful life and net residualrate of the investment property. The expected useful lives, net residual value rate and annual depreciation (amortization)rate of the investment properties are as follows:
Estimateduseful livesEstimatednet residual value rateAnnual depreciation (amortization) rateBuildings30 years0%3.3%Land use rightLand useful lives0%
Determined according to the estimated net residual valueand useful life for the land useful livesThe Group shall review estimated useful lives, estimated net residual value and depreciation (amortization) methods ofthe investment properties at the end of each year and shall make adjustment when necessary.When an investment property is changed for self-use, upon change, the investment property shall be converted into xedassets or intangible assets. When the self-use property is changed to earn rentals or for capital appreciation, upon change,xed assets or intangible assets shall be converted into investment properties. When there is a conversion, the book valuebefore the conversion shall be regarded as the book value after the conversion.
Section X Financial Report
21. Fixed assets
(1). Recognition criteria
√Applicable? Not ApplicableFixed assets will only be recognized when the economic benets relating to the xed assets may ow into the Group andthe costs of the xed assets can be measured reliably. If the subsequent disbursements relevant to a xed asset meet therecognition conditions, they shall be recorded in the cost of xed asset, and the book value of the replaced part shall bederecognized; otherwise, they shall be recorded in the current prots and losses.Fixed assets are initially measured at cost. The costs of externally acquired xed assets comprise their purchase prices,related taxes and surcharges and any attributable expenditure incurred to prepare the asset for its intended use.
(2). Depreciation method
√Applicable? Not ApplicableCategoryDepreciation methodUseful lives (year)Residual value rateAnnual depreciation rateBuildings and constructionsStraight-line method20-40 years0%2.5%-5%Mechanical equipmentStraight-line method3-20 years0%5%-33.3%Oce and electronic equipmentStraight-line method3-5 years0%20%-33.3%Transportation facilities (excluding ship)Straight-line method5 years0%20%ShipStraight-line method10-30 years5%/10%3%-9.5%The Group shall review useful lives, estimated net residual value and depreciation methods of the xed assets at the endof each year and shall make adjustment when necessary.
22. Construction in progress
√Applicable? Not ApplicableThe Group recognizes the cost of the construction in progress at the actually incurred expenditures, including all typesof necessary expenditures incurred during the construction period, the capitalized borrowing costs incurred prior to thetime when the construction is brought to the expected conditions for use and other relevant costs.The construction in progress is converted into xed assets after it reaches the expected conditions for use.
Standard for carrying forward xed assetsBuildings and constructions
Houses and buildings have passed the preliminary acceptance and reached the expected usable state, or they
are actually put into use, whichever is earlierMechanical equipment
They meet the design requirements or are actually put into use after installation and commissioning,
whichever is earlierOce and electronic equipment
They meet the design requirements or are actually put into use after installation and commissioning,
whichever is earlierTransportation facilities (excluding ship)
They meet the design requirements or are actually put into use after installation and commissioning,
whichever is earlierShip
They meet the design requirements or are actually put into use after installation and commissioning,
whichever is earlier
23. Borrowing costs
√Applicable? Not ApplicableThe borrowing costs that can directly attributable to the acquisition and construction or production of assets complyingwith the capitalization conditions, shall be capitalized and other borrowing costs shall be included into current prot andloss.When capital expenditure and borrowing costs have incurred and acquisition and construction or production activitiesnecessary for the assets to reach the intended use or sale has begun, the Company will capitalize borrowing costs.
ANNUAL REPORT2023
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible forcapitalization have reached the working condition for their intended use or sale. The borrowing costs incurred thereaftershall be included in the current prot or loss.During the period of capitalization, the capitalized amount on interest of each accounting period shall be determinedin accordance with the following provisions: The interest of special borrowings to be capitalized should be determinedaccording to the actually incurred interest expenses in the current period less the interest income on deposits or theinvestment income; the interest of general borrowings to be capitalized should be calculated by multiplying the weightedaverage of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by theweighted average rate of used general borrowings.If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupteddue to the matters other than necessary procedures for such assets to reach the working conditions for its intendeduse or sale and such circumstance lasts for more than three months, the capitalization of borrowing costs should besuspended. Borrowing costs incurred during the interruption are recognized as the current prot or loss and continue tobe capitalized until the acquisition, construction or production of the asset restarts.
24. Biological assets
?Applicable√ Not Applicable
25. Oil and gas assets
?Applicable√ Not Applicable
26. Intangible assets
(1). The useful life and its judgment basis, estimation conditions, amortization method, or review procedures
√Applicable? Not ApplicableThe useful life of intangible assets is as follows at the straight-line method over its useful life.
Useful lifeJudgment basis
Land use right Land useful livesThe period of land use rightsSoftware use fees5 yearsService life of softwareProprietary technology10 yearsThe expected service life in combination with the product lifecycle
(2). Allocation scope and related accounting method for R&D expenditure
√Applicable? Not ApplicableThe Group’s expenditures for its internal research and development projects are classified into research expendituresand development expenditures. The expenditures in research phase will be included in the current profit or loss onoccurrence. The development expenditures will be capitalized only when all of the following conditions are satisfiedsimultaneously: It is feasible technically to nish intangible assets for use or sale; It is intended to nish and use or sellthe intangible assets; The usefulness of methods for intangible assets to generate economic benets shall be proved,including being able to prove that there is a potential market for the products manufactured by applying the intangibleassets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; It isable to nish the development of the intangible assets, and able to use or sell the intangible assets, with the supportof sucient technologies, nancial resources and other resources; and the expenditures attributable to the intangibleasset during its development phase can be measured reliably. Development expenditures that do not meet the aboveconditions are included in the current prot or loss on occurrence.
27. Long-term asset impairment
√Applicable? Not ApplicableThe Group recognizes the asset impairment under the following methods except for inventories, contract assets and
Section X Financial Report
assets related to contract cost, deferred income tax, financial assets and assets held for sale. The Group shall, on thebalance sheet date, make a judgment on whether there is any indication that the assets may impair. If such indicationdoes exist, the Group shall estimate the recoverable amount and carry out an impairment test. Impairment tests forgoodwill caused by business combination, intangible assets with indenite useful lives, and intangible assets not reachingusable condition shall be conducted at the end of every year whether they have signs of impairment or not.The recoverable amounts of assets are the higher of their fair values less costs to sell and the present values of the futurecash flows expected to be derived from the assets. The Group shall, on the basis of single item assets, estimate therecoverable amount. Where it is dicult to do so, it shall determine the recoverable amount of the group assets on thebasis of the asset group to which the asset belongs. The recognition of an asset group shall base on whether the maincash inow generated from the asset group is independent of those generated from other assets or other group assets.Where the recoverable amount of an asset or an asset group is lower than its book value, the book value of the asset orasset group shall be written down to their recoverable amounts. The write-downs are recorded into the current prot orloss and the provision for asset impairment are made accordingly at the same time.When the Company makes an impairment test of goodwill, it shall, as of the purchasing day, apportion the book valueof the goodwill to the relevant asset groups or combination of asset groups by a reasonable method. The related assetgroup or combination of asset groups shall be the asset group or combination of asset groups that can benet from thesynergy eect of business combination, and shall be smaller than the operating segments as determined by the Group.The asset group or combination of asset groups containing the goodwill shall be compared by their carrying valueand recoverable amount, and if the recoverable amount is less than carrying value, the amount impairment loss is rstallocated to oset the carrying value of the goodwill in the asset group or the combination of asset groups, and then willbe used to oset the carrying value of other assets pro rata in accordance with the proportion of the carrying value ofother assets other than goodwill in the asset groups and that of the combination of asset groups.Once the loss of assets impairment is recognized, it is not allowed to be reversed even if the value can be recovered insubsequent period.
28. Long-term deferred expenses
√Applicable? Not ApplicableLong-term deferred expenses shall be amortized at the straight-line method, and the amortization period is set out asfollows:
Amortization period
Improvement of xed assets acquired under the operating leaseExpected benecial period29 Contract liabilities√Applicable? Not ApplicableThe Group presents contract assets or liabilities in the balance sheet according to the relationship between theperformance of contract obligations and customer payments. After osetting the contract assets and contract liabilitiesunder the same contract, the Group presents them in net amount.For details of the Group’s determination and accounting treatment method of expected credit loss of contract assets,please refer to Note V.Contract liabilitiesContract liability refers to the obligation to transfer goods or services to customers for the consideration received orreceivable from customers, such as the money received by enterprises before transferring the promised goods or services.
30. Employee compensation
Employee benefits refer to compensations and other expenditures in any form paid by the Group as a consideration
ANNUAL REPORT2023for the services provided by its staff or for employment termination. Employee remuneration includes short-termremuneration, welfare after demission, dismissal welfare and other long-term welfare.
(1). Accounting treatment of short-term compensation
√Applicable? Not ApplicableDuring the accounting period of an employee' providing services, the short-term compensation actually incurred isrecognized as liabilities and includes them in the current prot or loss or the related asset costs.
(2). Accounting treatment of post-employment benets
√Applicable? Not ApplicableThe employees of the Group participated in the endowment insurance and unemployment insurance managed by thelocal government, and also participated in the enterprise annuity, and the corresponding expenses were included in therelevant asset costs or the current prot or loss when incurred.
(3). Accounting treatment of termination benets
?Applicable√ Not Applicable
(4). Accounting treatment of other long-term employee benets
?Applicable√ Not Applicable
31. Estimated liabilities
√Applicable? Not ApplicableExcept for contingent consideration and contingent liabilities assumed in business combination not under the samecontrol, when the obligations related to contingencies meet the following conditions, the Group recognizes them asestimated liabilities: this obligation is a present obligation of the Group; the performance of such obligation is likely toresult in outow of economic benets from the Group; the amount of the obligation can be measured reliably.The estimated liabilities are initially measured as the best estimate of expenses required for the performance of relevantpresent obligations by considering comprehensively the risks with respect to contingencies, uncertainties and the timevalue of money. The book value of estimated liabilities will be checked and properly adjusted on balance sheet date so asto reect the current best estimate.
32. Share-based payment
?Applicable√ Not Applicable
33. Preferred shares, perpetual bonds and other nancial instruments
√Applicable? Not ApplicableAfter the maturity of the perpetual bonds issued by the Group, the Group has the right to extend them for an unlimitednumber of times. For the coupon interest of the perpetual bonds, the Group has the right to postpone the payment, andthe group has no contractual obligation to pay cash or other nancial assets. They are classied as equity instrument.
34. Revenue
(1). Accounting policies for revenue recognition and measurement disclosed by business type
√Applicable? Not ApplicableThe Group recognizes revenue when it fulfills the performance obligation in the contract, that is, when the customerobtains control over the relevant goods or services. The acquisition of control of relevant goods or services means to beable to dominate the use of the goods or the rendering of the services and obtain almost all the economic benets fromthem.Manufacturing contracts on large-sized port equipment, heavy equipment and steel structure products
Section X Financial Report
The manufacturing contracts on large-sized port equipment, heavy equipment and steel structure products between theGroup and customers usually only include the performance obligations of transferring large-sized port machinery andequipment, heavy equipment and steel structure products customized for customers.The large-sized port equipment, heavy equipment and steel structure products provided by the Group during theperformance of the contract are irreplaceable, however, most of the large-sized port equipment, heavy equipment salescontracts and the manufacturing contracts of some steel structure products do not stipulate that the Group has the rightto collect money for the performance part that has been completed so far in the whole contract period. This part of thecontract does not meet the performance obligation conditions within a certain period of time, and the Group takes it asthe performance obligation at a certain point of time. The Group generally recognizes the revenue at the time point ofcontrol transfer of relevant port machinery and equipment, heavy equipment and steel structure products on the basis ofcomprehensive consideration of the following factors: the current right to receive payment of goods, the transfer of mainrisks and rewards in the ownership of goods, the transfer of legal ownership of goods, the transfer of physical assets ofgoods, and the acceptance of the goods by customers.In addition, based on the terms of sales contracts on individual large-sized port equipment and heavy equipment and themanufacturing contracts on some steel structure products, the Group has the right to collect money for the performancepart that has been completed so far during the whole contract period. The Group takes it as the performance obligationto perform in a certain period of time, and recognizes the revenue according to the performance progress, except thecases where the performance progress cannot be reasonably determined. Based on input method, the Group determinesthe corresponding performance progress of large-sized port equipment and heavy equipment contracts accordingto the proportion of the cost incurred in the total estimated cost. Based on output method, the Group determines theperformance progress of the steel structure manufacturing contract according to the proportion of the accumulatedprocessing tons to the estimated total processing tons. Where the performance progress cannot be reasonablydetermined, and the cost incurred by the Group is expected to be reimbursed, the revenue shall be recognized accordingto the amount of the cost that has incurred until the performance progress can be reasonably determined.Contracts on rendering of shipping and lifting servicesThe service contracts between the Group and its customers mainly involve special shipping services and hoisting services.The revenue of special shipping services rendered by the Group is recognized by time period method, and the progressof performance obligations is determined according to the proportion of the number of days transported in the totalestimated days of transportation. The revenue of shipping service shall be recognized when the service is completed.Material sales contractThe material sales contract between the Group and customers usually only includes the performance obligation oftransferring spare parts and other materials. The Group generally recognizes the revenue at the time of control transfer ofrelevant spare parts and other materials on the basis of comprehensive consideration of the following factors: the currentright to receive payment of goods, the transfer of main risks and rewards in the ownership of goods, the transfer of legalownership of goods, the transfer of physical assets of goods, and the acceptance of the goods by customers.Rendering of building servicesThe building service contract between the Group and customers usually includes the performance obligation ofinfrastructure construction. As the customer can control the assets under construction during the performance by theGroup, the Group takes them as the performance obligations within a certain period of time, and recognizes the revenueaccording to the performance progress, except that the performance progress cannot be reasonably determined. By inputmethod, the Group determines the performance progress of the services based on the cost incurred. If the performanceprogress cannot be reasonably determined and the cost incurred by the Group is expected to be compensated, therevenue shall be recognized according to the cost amount incurred until the performance progress can be reasonablydetermined.Build and transfer contract (BT contract)Activities under the BT contracts usually include build and transfer. With respect to the building services provided bythe Group, during the building period, the revenue of construction service contracts is recognized in accordance with
ANNUAL REPORT2023
the above accounting policies. The construction contract revenue is measured at the fair value of the considerationreceivable, and the“long-term receivables”are recognized and measured at the same time by effective interest ratemethod and the amortized cost, and oset upon receipt of payment of the project owner.PPP project contractPPP project contract refers to the contract concluded between the Group and the government party on PPP projectcooperation in accordance with laws and regulations, which also meets the following characteristics (hereinafter referredto as“dual characteristics”):
(1) The Group uses PPP project assets to provide public goods and services on behalf of the government party during the
contracted operation period;
(2) The Group is compensated for the public goods and services it provides within the contracted period.
Activities under the PPP contracts usually include construction, operation and transfer. During the building period, theGroup determines whether the Group is the principal responsible person or the agent in accordance with the accountingpolicy of the principal responsible person/agent below. If the Group is the principal responsible person, contract revenuefrom construction services and contract assets are recognized accordingly, and the revenue of construction contract ismeasured at the fair value of the consideration received or receivable. During the operating phase, the Group carries outaccounting treatment as follows accordingly:
(1) Pursuant to the contractual provisions of the PPP project, during the project operation, if the conditions for collection
of the cash (or other nancial assets) of a denite amount can be met, the amount of consideration of relevant PPP projectassets or the recognized amount of construction revenue is recognized as contract assets until the Group has the right toreceive the consideration (which depends only on the passage of time). When the Company has the right to collect suchconsideration (which depends only on the passage of time), the amount of consideration of relevant PPP project assetsor the recognized amount of construction revenue is recognized as accounts receivable, and subject to the accountingtreatment specied in the accounting policy for nancial instruments. When the PPP project assets reach their expectedusable conditions, the dierence of the amount of consideration of relevant PPP project assets or the recognized amountof construction revenue in excess of the cash (or other nancial assets) of a denite amount is recognized as intangibleassets.
(2) Pursuant to the contractual provisions of the PPP project, the Group has the right to collect payments from the
recipient of public goods and services, but such right shall not be an unconditional collection right if the paymentamount is uncertain. When the PPP project assets reach their expected usable conditions, the amount of considerationof relevant PPP project assets or recognized amount of construction revenue is recognized as an intangible asset andsubject to the accounting treatment specied in the accounting policy for intangible assets above.In the operation stage, when services are provided, recognize the corresponding revenue; Daily maintenance or repairexpenses incurred shall be recognized as current expenses. Daily maintenance or repair expenses incurred shall berecognized as current expenses.The Group presents the construction expenditures incurred during the construction period of PPP projects accountedas intangible assets as cash ows from investing activities. The Group presents the construction expenditures incurredduring the construction period of PPP projects other than those mentioned above as cash ows from operating activities.Variable considerationIf there is variable consideration in the contract, the Group shall determine the best estimate of variable considerationaccording to the expected value or the most likely amount, but the transaction price including variable considerationshall not exceed the amount that the accumulated recognized revenue is highly unlikely to have a signicant reversalwhen the relevant uncertainty is eliminated. On each balance sheet date, the Group re-estimates the amount of variableconsideration to be included in the transaction price.Consideration payable to customersIn the case of consideration payable to customers, the Group shall use such consideration payable to offset thetransaction price and then offset the current income at the later of the recognition of the relevant income and the
Section X Financial Reportpayment (or commitment to pay) of the customer consideration, unless the consideration payable to customers is for thepurpose of obtaining other clearly distinguishable goods or services from the customer.Warranty obligationsAccording to the contract and legal provisions, the Group provides quality assurance for the goods sold or the assetsbuilt. For the guarantee type quality assurance that the goods sold to customers meet the established standards, theGroup shall perform accounting treatment in accordance with Note V. For the service quality assurance for a separateservice provided in addition to guaranteeing that the goods sold meet the established standards, the Group shall takeit as a single performance obligation, allocate part of the transaction price to the service quality assurance according torelative proportion of the single selling price of the goods and service quality assurance, and recognize the revenue whenthe customer acquires service control right. In assessing whether quality assurance provides a separate service in additionto ensuring that the goods sold meet established standards, the Group shall consider whether the quality assurance islegal requirement, quality assurance period and the nature of the Group’s commitment to perform the tasks.Principal responsible person/agentThe Group determines whether it is the principal responsible person or the agent in the transaction according to whetherit has the right to control the goods or services before transferring them to customers. In case the Group can control thegoods and other products before transferring them to customers, the Group shall be the principal responsible personand recognize the revenue according to the total consideration received or receivable. Otherwise, the Group shall be theagent and recognize the revenue according to the amount of commission fees or handling charges that it is expectedto be entitled to receive, and the amount shall be recognized according to the net amount of the total considerationreceived or receivable after deducting the price payable to other relevant parties, or according to the xed commissionamount or proportion.
(2). Dierent operating models for similar businesses involve dierent revenue recognition methods and measurement
methods?Applicable√ Not Applicable
35. Contract cost
√Applicable? Not ApplicableThe Group’s assets related to contract cost include contract performance cost and contract acquisition cost. According tothe liquidity, they are presented in inventories, other current assets and other non-current assets respectively.If the incremental cost incurred by the Group to get the contract is expected to be recovered, it shall be recognized as anasset as the contract acquisition cost, unless the amortization period of the asset does not exceed one year.The cost incurred by the Group in performing the contract, which is not applicable to the specification scope ofinventories, xed assets or intangible assets and meets the following conditions simultaneously, shall be recognized as anasset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), costs clearly borne by the customer and other costs incurred solely as a result of thecontract;
(2) The cost increases the enterprise
’s resources for fullling its performance obligations in the future;
(3) The cost is expected to be recovered.
The Group’s assets related to contract cost are amortized on the same basis as the recognition of income related to theassets, and are included in the current prot or loss.If the book value of the assets related to contract cost is higher than the dierence between the following two items, theGroup will make provision for impairment of the excess part and recognize it as the loss of asset impairment:
(1) The remaining consideration expected to be obtained by the enterprise due to the transfer of goods or services related
to the assets;
ANNUAL REPORT2023
(2) The cost expected to be incurred for the transfer of relevant goods or services.
36. Government subsidies
√Applicable? Not ApplicableGovernment subsidies shall be recognized only if the Company is able to comply with the conditions for the governmentsubsidies, and is likely to receive the government subsidies. If a government subsidy is a monetary asset, it shall bemeasured at the amount received or receivable. If a government subsidy is a non-monetary asset, it shall be measured atits fair value; and if its fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.If the government subsidies shall be used for the construction or the generation in otherwise of the long-term assets asrequired by the government documents, they are the assets-related government subsidies; if government documentshave no relevant provisions, and such government subsidies are based on the condition of the construction or thegeneration in otherwise of the long-term assets judged on the basis of basic conditions required for obtaining suchgovernment subsidies, they shall be deemed as the assets-related government subsidies, other government subsidies inaddition to the said ones shall be deemed as the income-related government subsidies.Income-related government subsidies which are used to compensate for relevant costs or losses in subsequent periodswill be recognized as deferred income, and will be included in the current prot or loss or be used to write o relevantcosts in the period when relevant costs or losses are recognized.If assets-related government subsidies are recognized as deferred income, they shall be included in prot or loss by stagesby a reasonable and systematic method within the useful lives of relevant assets. (However, the government subsidiesmeasured at nominal amounts are directly included in the current prot or loss); if the relevant assets are sold, transferred,scrapped or damaged before the end of their useful lives, the undistributed balance of relevant deferred income istransferred to the prot or loss from the current period of asset disposal.
37. Deferred income tax assets/deferred income tax liabilities
√Applicable? Not ApplicableDeferred income tax is accrued under the balance sheet liability method by the Group based on the temporary dierencebetween book value of assets and liabilities on the balance sheet date and tax base, as well as the balance between thebook value of items which have not been recognized as assets or liabilities but the tax base can be determined accordingto the tax law and the tax base.Taxable temporary dierences are recognized as deferred income tax liabilities, except that
(1) The taxable temporary dierences generate in the following transactions: the initial recognition of goodwill, or the
initial recognition of assets or liabilities arising from transactions with the following characteristics: the transaction is nota business combination and will not aect accouting prots, nor aect the taxable income or deductible losses whenthe transaction occurs, and initial recognition of assets and liabilities does not lead to the generation of equal taxabletemporary dierences and deductible temporary dierences.
(2) For taxable temporary dierences related to the investments in subsidiaries, joint ventures and associates, the time for
the reversal of the taxable temporary dierences can be controlled and the taxable temporary dierences are likely not tobe reversed in the foreseeable future.For deductible temporary differences, deductible losses and tax credits that can be carried forward to subsequentperiods, deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probableto be available against the deductible temporary dierences, deductible losses and tax credits, unless the deductibletemporary dierences arise from the following transactions:
The deductible temporary difference is generated in the following transaction: the transaction is not a businesscombination and will not aect accouting prots, nor aect the taxable income or deductible losses when the transactionoccurs, and initial recognition of assets and liabilities does not lead to the generation of equal taxable temporarydierences and deductible temporary dierences.
Section X Financial Report
For the deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, thetemporary dierences may be reversed in the foreseeable future and they can be used to oset the taxable income ofdeductible temporary dierences in the future.On the balance sheet date, the Company shall measure deferred income tax assets and deferred income tax liabilities atthe applicable tax rate during the period for expected recovery of assets or settlement of liabilities and reect the impactsof the income tax by means of expected recovery of assets or settlement of liabilities on the balance sheet date.On the balance sheet date, the Group reviews the book value of deferred income-tax assets. If it is unlikely to obtainsucient taxable income to oset the benet of the deferred income-tax assets, the book value of the deferred income-tax assets will be written down. On the balance sheet date, the Group re-evaluates unrecognized deferred income taxassets, and deferred income tax assets are recognized to the extent that it is likely to obtain sucient taxable income forall or part of the deferred income tax assets to be reversed.Deferred income tax assets and deferred income tax liabilities meeting the following conditions simultaneously will bepresented by net amount after oset: when the Company has the statutory right to balance current income tax assetsand current income tax liabilities with net amounts, and deferred income tax assets and deferred income tax liabilities arerelated to the income tax which are imposed on the same taxpayer by the same tax collection authority or on dierenttaxpayers, but, in each important future period in connection with the reversal of deferred income tax assets andliabilities, the involved taxpayer intends to settle the current income tax assets and liabilities on a net amount basis, orobtain assets at the time of discharging liabilities.
38. Lease
√Applicable? Not ApplicableJudgment basis and accounting treatment method for simplified treatment of short-term leases and low-value assetleases as a lessee√Applicable? Not ApplicableOn the beginning date of the contract, the Group assesses whether the contract is a lease or contains a lease, if oneparty transfers the right to control the use of one or more identied assets for a certain period of time in exchange forconsideration, such contract is, or contains, a lease.As the lesseeExcept for short-term leases and low-value asset leases, the Group recognizes right-of-use assets and lease liabilities forleases.Right-of-use assetsAt the commencement date of the lease term, the Group recognizes its right to use the leased asset over the lease term asa right-of-use asset, which is initially measured at cost. The right-of-use assets include: the initial measurement amount ofthe lease liability, the lease payments made on or before the commencement date of the lease term, lessing the amountrelated to the lease incentive already taken; initial direct costs incurred by the lessee; the costs expected to be incurredby the lessee to disassemble and remove the leased asset, restore the site where the leased asset is located, or restorethe leased asset to the condition agreed in the lease terms. If the Group remeasures the lease liability due to changes inlease payments, the book value of the right-of-use asset is adjusted accordingly. The Group subsequently depreciatesright-of-use assets under straight-line method. If it can be reasonably certain that the ownership of the leased asset willbe obtained at the expiration of the lease term, the leased asset will be depreciated over the remaining useful life. If itis impossible to reasonably certain that the ownership of the leased asset will be obtained at the expiration of the leaseterm, the leased asset will be depreciated over the shorter of the lease term and the remaining useful life.Lease liabilitiesAt the commencement date of the lease term, the Group recognizes the present value of the outstanding lease paymentsas a lease liability, except for short-term leases and low-value asset lease. Lease payments include xed payments andsubstantially xed payments net of lease incentives, variable lease payments that depend on an index or rate, amounts
ANNUAL REPORT2023expected to be payable based on the residual value of guarantee, and also include the exercise price of the purchaseoption or amounts to be paid upon exercise of a lease termination option if the Group is reasonably certain that theoption will be exercised or the lease term reects that the Group will exercise the lease termination option.When calculating the present value of the lease payments, the Group uses the interest rate embedded in the lease as thediscount rate; if the interest rate embedded in the lease cannot be determined, the incremental borrowing rate of thelessee is used as the discount rate. The Group calculates the interest expenses on lease liabilities at a xed periodic ratefor each period of the lease term and recognizes it in current prot or loss, unless otherwise provided for in the cost of therelevant assets.After the commencement date of the lease term, the Group increases the carrying amount of the lease liability wheninterest is recognized and decreases the carrying amount of the lease liability when lease payments are made. Whenthere is a change in the substantial xed payment, a change in the estimated payable amount of the guaranteed residualvalue, a change in the index or ratio used to determine the lease payment, or a change in the evaluation result or actualexercise of the purchase option, renewal option or termination option, the Group remeasures the lease liability at thepresent value of the changed lease payment.Short-term lease and low-value asset leaseThe Group recognizes the lease with a lease term of no more than 12 months from the commencement date andexcluding the purchase option as a short-term lease; a lease with a low value when a single leased asset is a new assetis recognized as a low-value asset lease. The Group chooses not to recognize right-of-use assets and lease liabilities forshort-term leases and low-value asset leases. During the lease term, the relevant asset costs or current prots or losses arerecognized on a straight-line basis for each period.LeasebackThe Group assesses whether the transfer of assets in leaseback transactions is a sale in accordance with Note V.As the lesseeWhere asset transfer under the leaseback transactions is a sale, as the lessee, the Group shall measure the right-of- useassets created by the leaseback based on the portion of book value of the original assets related to right of use obtainedupon leaseback, and only recognize relevant profit or loss for the right transferred to the lessor. Where asset transferunder leaseback transactions is not a sale, as the lessee, the Group shall continue to recognize the transferred assets whilerecognizing a nancial liability equal to the transfer income, and shall carry out accounting treatment for such nancialliability according to Note V.Lease classication standards and accounting treatment method as a lessor√Applicable? Not ApplicableAs a lessorA lease is classied as a nance lease whenever the terms of the lease transfer substantially all the risks and rewards ofasset ownership to the lessee on the commencement date. All leases other than nancial leases are classied as operatingleases.As a lessor of operating leaseRental income from the operating lease in each stage during the lease term should be recognized as the current protor loss by the straight-line method, and the variable lease payments not included in the lease receipts are recognized inprot or loss when they are actually incurred. Initial direct costs are capitalized and amortized over the lease term on thesame basis as the recognition of rental income, and are included in current prot or loss.
39. Other accounting policies and accounting estimates
√Applicable? Not ApplicableWork safety expensesThe Company withdraws the work safety expenses according to provisions, includes them in the cost of related products
Section X Financial Report
or the current prot or loss, and includes them in special reserves at the same time. The costs are handled separatelydepending on whether they form fixed assets: when withdrawn work safety expenses are used within the prescribedrange and belong to expenses, such costs shall be directly deducted from special reserves; where a xed asset is formed,the expenses incurred through collection are recognized as the xed asset when it is ready for its intended use, and theequivalent special reserve is written o and the equivalent accumulated depreciation is conrmed.Fair value measurementOn the balance sheet date, the Group will measure the equity instrument investment with the fair value. Fair value is areceivable price for selling an asset or a demanding price for transferring a liability for participants in the market in theorderly transactions during the measuring period.For assets and liabilities measured at or disclosed by their fair value in the financial statements, the level of themeasurement result of fair value shall subject to the lowest level which the input having great signicance to the entiremeasurement of fair value belongs to: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identicalassets or liabilities available on the measurement date; Level 2 inputs refer to inputs that are directly or indirectlyobservable for the assets or liabilities other than Level 1 inputs; Level 3 inputs refer to unobservable inputs of the relevantassets or liabilities.On each balance sheet date, the Group reevaluates the assets and liabilities continuously measured at fair value andrecognized in the nancial statements in order to determine whether there is a conversion among the levels of fair valuemeasurement.Asset securitizationThe Group securitizes part of its accounts receivable and contract assets (“trust property”) and entrusts the assets to astructured entity, which issues senior asset-backed securities to investors. After paying the trust tax burden and relevantexpenses, trust property is given priority to pay to principal and interest of senior asset-backed securities. After payingall principal and interest, remaining trust property will be regarded as earnings of subordinated asset-backed securities,which belongs to the holders of subordinated asset-backed securities.For the financial asset securitization business, the Group first analyzes whether the structured entity should beconsolidated based on the subordinated shares held, the performance remuneration enjoyed, and the rights held. If theGroup retains the contractual right to receive cash ows from nancial assets but assumes the contractual obligation topay the cash ows received to one or more nal recipients, the Group shall determine the relevant accounting treatmentin accordance with Note 5 considering the risk and reward of the assets transferred to other entities if and only if thefollowing three conditions are met at the same time, otherwise the Group continues to recognize the transferred nancialassets: the Group is obliged to pay the cash ows to the nal recipient only when it receives equivalent cash ows fromthe nancial assets; the transfer contract prohibits the Group from selling or pledging such nancial assets, but the Groupcan use it as a guarantee for the obligation to pay cash ows to the nal recipient; and the Group is obliged to transfer allcash ows collected on behalf of the nal recipient to the nal recipient in a timely manner without signicant delay.Signicant accounting judgment and estimatePreparation of the financial statements requires the management to make judgment, estimation and hypothesis thatwill have an impact on the presentation amounts and disclosure of the incomes, expenses, assets and liabilities, and thedisclosure of contingent liabilities on the balance sheet date. The result incurred due to uncertainty of these hypothesesand estimates may cause signicant adjustment of book values of those assets or liabilities inuenced in the future.JudgmentIn the application of the Group’s accounting policies, the management has made the following judgments that have amaterial impact on the amounts recognized in the nancial statements:
Determination of the performance progress of construction contracts (only applicable to transfer of control over a periodof time)For construction projects, port machinery and heavy equipment construction contracts, the Group determines theperformance progress according to the proportion of the cumulative actual construction cost to the estimated total
ANNUAL REPORT2023
cost, while the cumulative actual cost includes the direct cost and indirect cost in the process of transferring goods tocustomers; for steel structure and related construction contracts, the Group determines the performance progress basedon the proportion of the cumulative actual output tonnage to the estimated total tonnage. The Group believes that theconstruction contract price with customers is determined on the basis of construction cost or output tonnage, and theproportion of the actual construction cost or comprehensive tonnage to the estimated total cost can or estimated totaltonnage can truly reect the performance progress of construction services. In view of the long duration of constructioncontracts, which may span several accounting periods, the Group will recheck and revise the budget with the progress ofthe construction contracts, and adjust the amount of revenue recognized accordingly.Uncertainty of estimationThe following are other key sources of the uncertainty of the key assumptions and estimates in the future on the balancesheet date, which may lead to major adjustments in the book value of the assets and liabilities of next scal year.Impairment of nancial instruments and contract assetsThe Group adopts the expected credit loss model to assess the impairment of nancial instruments and contract assets.The application of the expected credit loss model requires significant judgments and estimates. It must consider allreasonable and evidence-based information, including forward-looking information. In making such judgments andestimates, the Group infers expected changes in debtors' credit risk based on historical repayment data combinedwith economic policies, macroeconomic indicators, industry risks and other factors. Dierent estimates may aect theprovision for impairment, and the amount of impairment that has been provided may be not equal to the actual amountof future impairment losses.Inventory depreciation reservesThe management shall estimate the net realizable value of inventories in time so as to estimate the provision fordepreciation of inventories. If any event or circumstance changes, it is necessary to use the estimate to make the provisionfor depreciation of inventories if the inventory is not likely to realize the relevant value. If the expected amount is dierentfrom the original estimate, the relevant dierence will aect the book value of the inventories and the impairment lossduring the estimated change.Impairment of goodwillThe Group tests whether the goodwill is impaired at least annually. This requires an estimate of the present value of thefuture cash flows of the asset group or combination of asset groups to which goodwill is allocated. When estimatingthe present value of future cash ows, the Group needs to estimate the cash ow generated by future asset groups orcombination of asset groups, and select the appropriate discount rate to determine the present value of future cash ows.See Note VII for details.Fair value of unlisted equity investmentsThe Group uses the market approach to determine the fair value of unlisted equity investments. This requires the Groupto identify comparable listed companies, select market multipliers, estimate liquidity discounts, etc. and is thereforesubject to uncertainty.Impairment of non-current assets other than nancial assets (other than goodwill)On the balance sheet date, the Group judges whether there are any signs of possible impairment of non-current assetsother than financial assets. Non-current assets other than financial assets are tested for impairment when there is anindication showing that their book amounts are irrecoverable. When the book value of an asset or asset group is higherthan the recoverable amount, that is, the higher of the net amount from fair value less the disposal expense and thepresent value of the estimated future cash ow, it indicates that the impairment occurred. The net amount after the fairvalue minus the disposal expenses is determined by reference to the sales agreement price of similar assets in the fairtrade or the observable market price, minus the incremental cost directly attributable to the disposal of the asset. Whenestimating the present value of future cash ows, management must estimate the expected future cash ows of the assetor asset group and select an appropriate discount rate to determine the present value of future cash ows.
Section X Financial Report
40. Changes in signicant accounting policies and accounting estimates
(1). Changes in signicant accounting policies
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Content and cause of changes in accounting policies
Signicantly aectedstatement item name
InuencedamountRecognition of deferred income tax related to leasesAccording to the Interpretation No. 16 of the Accounting Standards for Business Enterprises issued in 2022,for single transactions that are not business combinations, will not aect accounting prot or taxable income(or deductible losses) when the transaction occurs, with initial recognition of assets and liabilities resulting inequal taxable temporary dierences and deductible temporary dierences, the provisions on exemption frominitial recognition of deferred income tax are not applicable. The above provisions took eect on January 1,2023. According to the provisions on connection, the Group has made adjustments to the above transactionsthat occurred between the beginning of the earliest period of nancial statements for the rst implementationof the Interpretation and the date of the change in accounting policies; for the lease liabilities and right-of-useassets recognized at the beginning of the earliest period of nancial statements for the rst implementation ofthe Interpretation due to the above transactions, if taxable temporary dierences and deductible temporarydierences arise, the Group will adjust the relevant nancial statement items of the earliest period of nancialstatements by the cumulative impact.
Deferred tax assets anddeferred tax liabilities
Other description:
None
(2). Changes in accounting estimates
?Applicable√ Not Applicable
(3). First-time implementation of new accounting standards or interpretations of standards from 2022 onwards involves
adjustments to the nancial statements at the beginning of the year of rst-time implementation?Applicable√ Not Applicable
41 Others
?Applicable√ Not Applicable
VI. Taxes
1. Main tax categories and tax rates
Main tax categories and tax rates√Applicable? Not Applicable
Category of taxBasis of tax computationTax rate
VAT
The dierence between the outputtax calculated by applicable taxrate, after deducting the deductibleinput tax
VAT is applicable to the sales of the Group’s products. The taxable income from the sales ofthe products in domestic market is subject to the output tax as per 13%; the products forexport adopt the method of“tax exemption, tax deduction and tax reimbursement”and theapplicable tax rate is 13%. The Group’s income from the marine transport is applicable toVAT, and the output tax is calculated as per 9%; the income from leasing of the equipmentis applicable to VAT and the output tax is calculated as per 13% of the taxable income; theincome from the sales of the equipment is applicable to the simple collection measures ofVAT and the tax rate is subject to the reduced tax rate of 2%; the Group’s income from theleasing of the housing is applicable to the simple collection measures of VAT and the taxrate is 5%; the item“B-T”is applicable to VAT and the output tax on the taxable income iscollected at 9%. The above output tax shall calculate and pay VAT after deducting the amountof input tax deductible, except for the applicable VAT’s simple collection method.
ANNUAL REPORT2023
Category of taxBasis of tax computationTax rateUrban maintenanceand constructiontax and educationsurcharge
The amount of value-added taxactually paid and exempted uponthe official approval by the StateAdministration of Taxation
Calculated and paid according to 7% and 3% of the turnover tax actually paid and exemptedupon the ocial approval by the State Administration of Taxation.
Enterprise incometax
Taxable income
The enterprise income tax is calculated and paid in accordance with the Enterprise IncomeTax Law of People’s Republic of China (hereinafter referred to as the“Income Tax Law”).In accordance with the relevant provisions of the Measures for the Administration ofthe Certification of High-tech Enterprises (GKFH [2016] No. 32) and the Guidelines forthe Administration of the Certification of High-Tech Enterprises (GKFH [2016] No. 195),the Company was awarded a new High-tech Enterprise Certificate (Certificate Number:
GR202331007094) in December 2023 after reexamination, with the valid term of 3 years. TheCompany actually applied the enterprise income tax rate of 15% this year (2022: 15%).Where there are taxpayers with dierent enterprise income tax rates, the disclosure shall be stated√Applicable? Not ApplicableName of taxpayerIncome tax rate (%)
The Company15%Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd.15%Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd.16.5%Shanghai Zhenhua Shipping Co., Ltd25%Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.15%Shanghai Zhenhua Heavy Industries Group (Nantong) Transmitter Co., Ltd.15%ZPMC Electric Co., Ltd.15%Shanghai Zhenhua Ocean Engineering Service Co., Ltd25%ZPMC Machinery Equipment Services Co., Ltd.25%Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd.25%Shanghai Port Machinery Heavy Industry Co., Ltd25%ZPMC Zhangjiagang Port Machinery Co., Ltd.25%ZPMC Qidong Marine Engineering Co., Ltd.25%Jiahua Shipping Co., Ltd.16.5%Zhenhua Pufeng Wind Energy (HongKong) Co., Ltd.16.5%Nanjing Ninggao New Channel Construction Co., Ltd25%CCCC Investment & Development Qidong Co., Ltd.25%CCCC Liyang Urban Investment and Construction Co., Ltd.25%CCCC (Huaian) Construction Development Co., Ltd.25%CCCC Zhenjiang Investment Construction Management Development Co., Ltd.25%CCCC Rudong Construction Development Co., Ltd.25%ZPMC Netherlands Co?peratie U.A.25.8%ZPMC Netherlands B.V.25.8%Verspannen B.V.25.8%ZPMC Espana S.L.25%ZPMC Italia S.r.l.24%ZPMC GmbH Hamburg32.25%ZPMC Lanka Company (Private) Limited30%ZPMC North America Inc.29%ZPMC Korea Co., Ltd.20%ZPMC Engineering Africa (Pty) Ltd.28%ZPMC Engineering (India) Private Limited25.17%ZPMC Southeast Asia Holding Pte. Ltd.17%ZPMC Engineering (Malaysia) Sdn. Bhd.24%ZPMC Australia Company (Pty) Ltd.30%ZPMC Brazil Servi?o Portuários LTDA25%
Section X Financial Report
Name of taxpayerIncome tax rate (%)
ZPMC Limited Liability Company20%ZPMC NA East Coast lnc.33%ZPMC Middle East FZE0%ZPMC UK LD19%Greenland Heavylift (Hong Kong) Limited16.5%GPO Grace Limited0%GPO Amethyst Limited0%GPO Sapphire Limited0%GPO Emerald Limited0%GPO Heavylift Limited0%GPO Heavylift AS0%GPO Heavylift Pte Ltd17%ZPMC Latin America Holding Corporation5%Terminexus Co., Ltd.16.5%CCCC Yongjia Construction Development Co., Ltd.25%CCCC Zhenhua Lvjian Technology (Ningbo) Co., Ltd.25%ZPMC Hotel Co., Ltd.25%Xiong’an Zhenhua Co., Ltd.25%ZPMC Fuzhou Oshore Construction Co., Ltd.25%CCCC (Dongming) Investment and Construction Co., Ltd.25%CCCC Zhenhua Intelligent Parking (Hengyang) Co., Ltd.25%
2. Tax preferences
√Applicable? Not ApplicableShanghai Zhenhua Port Machinery Heavy Industries Co., Ltd. won the High-tech Enterprise Certificate (No.:
GR202231000204) in October 2022, with the valid term of 3 years. Nantong Zhenhua Heavy Equipment ManufacturingCo., Ltd. won the High-tech Enterprise Certificate (No.: GR202132001798) in November 2021, with the valid term of 3years. Shanghai Zhenhua Heavy Industries Group (Nantong) Transmitter Co., Ltd. won the High-tech Enterprise Certicate(No.: GR202232002981) in 2022, with the valid term of 3 years. Shanghai Zhenhua Heavy Industries Electric Co., Ltd wonthe Hi-tech Enterprise Certicate (No.: GR202331003809) in December 2023, with the valid term of 3 years. In accordancewith relevant provisions in Article 28 of the Income Tax Law, the actually applicable enterprise income tax rate for thesecompanies in this year was 15% (2022: 15%).
3. Others
?Applicable√ Not ApplicableVII. Notes to the main items of the consolidated nancial statements
1. Monetary funds
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Cash on hand494,8091,027,476Bank deposits5,031,675,0962,374,073,961Other monetary funds72,908,53121,946,276Total5,105,078,4362,397,047,713Including: total amount of overseas deposits1,039,089,8641,253,939,219
ANNUAL REPORT2023
2. Held-for-trading nancial assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022
Reasons and basis for
designation
Financial assets measured at fair value through the current prot or loss720,594,675877,483,342/Including:
Derivative nancial assets – equity options (i)8,438,2788,438,278/Investments in shares of listed companies (ii)712,156,397869,045,064/Financial assets designated to be measured at fair value through thecurrent prot or lossIncluding:
Total720,594,675877,483,342/Other description:
√Applicable? Not Applicable(i) As at December 31, 2023, the held-for-trading nancial assets- derivative nancial assets – equity options held by theGroup refers to the fair value of the right obtained at the time of acquiring Greenland Heavylift (Hong Kong) Limited topurchase 1% of its equity of at the price of USD 1.(ii) As at December 31, 2023, the listed company share investments held by the Group include 4.86% equity of JiangxiHuawu Brake Co., Ltd., 1.16% equity of CRSC, 0.96% equity of Qingdao Port International Co., Ltd., and 0.01% equity ofCOSCO Shipping Holdings Co., Ltd.
3. Derivative nancial assets
?Applicable√ Not Applicable
4. Notes receivable
(1). Presentation of notes receivable by category
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022
Bank acceptance billCommercial acceptance bill14,122,03156,114,657Total14,122,03156,114,657
(2). Notes receivable pledged by the Company at the end of the period
?Applicable√ Not Applicable
(3). Notes receivable endorsed or discounted by the Company at the end of the period and not yet due on the balance
sheet date?Applicable√ Not Applicable
(4). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
Section X Financial Report
Provision for bad debts is calculated based on the general model of expected credit loss?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of notes receivable with changes in provisions for losses in thecurrent period:
?Applicable√ Not Applicable
(5). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(6). Notes receivable actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of notes receivable:
?Applicable√ Not ApplicableExplanation of write-o of notes receivable:
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
5. Accounts receivable
(1). Disclosure by aging
√Applicable? Not Applicable
Unit: Yuan Currency: CNYAgingDecember 31, 2023December 31, 2022Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year4,922,793,2844,719,933,4601- 2 years1,497,051,338856,147,8522- 3 years625,448,7241,917,825,421Over 3 years3- 4 years866,155,324673,336,0294- 5 years652,981,128176,228,829Over 5 years1,274,119,2081,167,076,085Total9,838,549,0069,510,547,676
(2). Disclosure by bad debt calculation method
√Applicable? Not Applicable
Unit: Yuan Currency: CNYCategory
December 31, 2023December 31, 2022Book balanceProvision for bad debts
Book value
Book balanceProvision for bad debts
Book valueAmount
Proportion
(%)
Amount
Proportion ofprovision (%)
Amount
Proportion
(%)
Amount
Proportion ofprovision (%)
Provision for baddebts accrued on anindividual basis
908,640,2309837,390,8999271,249,331896,540,1369825,285,3909271,254,746Including:
ANNUAL REPORT2023
Category
December 31, 2023December 31, 2022Book balanceProvision for bad debts
Book value
Book balanceProvision for bad debts
Book valueAmount
Proportion(%)
Amount
Proportion ofprovision (%)
Amount
Proportion(%)
Amount
Proportion ofprovision (%)Provision for baddebts by portfolio
8,929,908,776911,734,860,005197,195,048,7718,614,007,540911,491,612,431177,122,395,109IncludingTotal9,838,549,006/2,572,250,904/7,266,298,1029,510,547,676/2,316,897,821/7,193,649,855Individual provision for bad debts:
√Applicable? Not Applicable
Unit: Yuan Currency: CNYName
December 31, 2023Book balanceProvision for bad debtsProportion of provision (%)Reason for provisionAccounts receivable 1474,995,540403,746,20985Counterparty nancial shortageDescription of individual provision for bad debts:
√Applicable? Not ApplicableAs of December 31, 2022, the accounts receivable with provision for bad debts accrued on an individual basis are asfollows:
Name
December 31, 2023Book balanceProvision for bad debtsProportion of provision (%)Reason for provision
Accounts receivable 1475,031,639403,776,89385Counterparty nancial shortageProvision for bad debts by portfolio:
?Applicable√ Not ApplicableProvision for bad debts is calculated based on the general model of expected credit loss?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of accounts receivable with changes in provisions for losses in thecurrent period:
?Applicable√ Not Applicable
(3). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(4). Accounts receivable actually written o in the current period
?Applicable√ Not ApplicableWrite-o of important accounts receivable?Applicable√ Not ApplicableExplanation of write-o of accounts receivable:
?Applicable√ Not Applicable
(5). Top 5 accounts receivable and contract assets in terms of ending balance presented by debtor
?Applicable√ Not ApplicableOther description:
√Applicable? Not Applicable
Section X Financial Report
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
20232022The estimateddefault the whole
duration
Accruingproportion (%)
The book balanceof Expected credit
loss
The estimateddefault the wholeduration
Accruingproportion (%)
The book balanceof Expected credit
loss
Within 1 year4,918,235,3834180,647,9884,717,806,0434183,619,6561-2 years1,497,010,83812180,463,562856,147,85213111,990,6962-3 years625,448,72430190,373,4121,808,064,28226470,904,0173-4 years756,394,18653400,921,875230,551,0833887,894,3124-5 years214,716,18150107,993,104161,998,0295994,864,959Over 5 years918,103,46473674,460,064839,440,25165542,338,791Total8,929,908,7761,734,860,0058,614,007,5401,491,612,431
As at December 31, 2023, the top ve accounts receivable and contract assets are as follows:
Accountsreceivable Balance
at the end of the
current year
Contract assetsBalance at the endof the current year
Accounts receivableand contract assetsBalance at the end ofthe current year
Proportion in total year-end balance of accountsreceivable and contract
assets (%)
Provision for bad debts of accounts
receivable and provision forimpairment of contract assets Balanceat the end of the current yearClient 1129,907,741545,737,488675,645,229593,172,418Client 2529,999,000-529,999,0004-Client 3487,062,6239,532,053496,594,6764-Client 4474,995,538-474,995,5384403,746,208Client 5358,198,795-358,198,7953-Total1,980,163,697 555,269,541 2,535,433,238 20496,918,6266 Contract assets
(1). Particulars about contract assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
December 31, 2023December 31, 2022Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueWarranty balance recognized at the timeof control transfer (Remark 1)
698,290,178103,987,647594,302,531649,826,26149,774,565600,051,696Outstanding payments for constructioncompleted (Remark 2)
2,293,374,852108,044,2492,185,330,6032,704,018,17060,996,7302,643,021,440Total2,991,665,030212,031,8962,779,633,1343,353,844,431110,771,2953,243,073,136Remark 1: When the Group sells equipment to customers and provides relevant installation services, it constitutes a single performance obligation. When theGroup recognizes revenue at the time of fullling its performance obligations, the Company’s unconditional (i.e., only depending on the passage of time)right to collect consideration from customers shall be presented as receivables. The non-invoiced contract warranty balance is the right to conditionallycollect the consideration from the customer. Therefore, the Company recognizes the non-invoiced contract receivables as contract assets, and the contractassets will form unconditional collection right after the expiration of the warranty and will be transferred to the receivables.Remark 2: The Group provides customers with manufacturing of large port machinery and equipment, infrastructure construction services, and steelstructure and heavy equipment product manufacturing, and recognizes revenue within a period of time to form contract assets. The contract assets willform unconditional collection right at the time of project settlement and are transferred in receivables. The customers shall settle accounts with the Groupon the performance progress of the delivery of large port machinery and equipment, engineering construction services and steel structure and heavyequipment products under contract provisions, and pay the contract price according to the credit period specied in the contract after settlement. The partof the income amount recognized by the Group according to the performance progress exceeding the settled price is recognized as contract assets, and thepart of the settled price exceeding the income amount recognized by the Group according to the performance progress is recognized as contract liabilities.As at December 31, 2023, the contract assets were RMB 146,326,607 (as at December 31, 2022: RMB 133,406,311), whichhad been pledged to the bank as the guarantee for the long-term borrowings of RMB 3,142,068,341 (as at December 31,
ANNUAL REPORT2023
2022: Long-term borrowings of RMB 2,469,639,584).
(2). Amount of and reason for signicant changes in book value during the reporting period
?Applicable√ Not Applicable
(3). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
√Applicable? Not Applicable
Unit: Yuan Currency: CNYName
December 31, 2023Contract assetsProvision for bad debtProportion (%)Within 1 year2,410,170,070105,188,50241- 2 years507,865,98080,314,538162- 3 years66,292,71522,418,51434Over 3 years7,336,2654,110,34256Total2,991,665,030212,031,896Explanation of provision for bad debts accrued by portfolio [Double click to switch]?Applicable√ Not ApplicableProvision for bad debts is calculated based on the general model of expected credit loss?Applicable√ Not ApplicableExplanation of significant changes in the book balance of contract assets with changes in provisions for losses in thecurrent period:
?Applicable√ Not Applicable
(4). Provision for bad debts of contract assets of the current period
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Provision in the current
period
Recovery or reversal in the
current period
Write-o/charge-o in the
current period
ReasonWarranty balance recognized at the time ofcontrol transfer
69,719,395-15,506,313Outstanding payments for constructioncompleted
47,047,519Total116,766,914-15,506,313/The recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(5). Contract assets actually written o in the current period
?Applicable√ Not Applicable
Section X Financial ReportSignicant write-o of contract assets?Applicable√ Not ApplicableNote to contract asset write-o:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
7. Receivables nancing
(1). Receivables nancing presented by category
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Bank acceptance bill485,743,897145,939,266Digital debt voucher of accounts receivable479,825,225293,973,162Total965,569,122439,912,428
(2). Receivables nancing pledged by the Company at the end of the period
?Applicable√ Not Applicable
(3). Receivables nancing that has been endorsed or discounted by the Company and is not due at the balance sheet date
at the end of the period.√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDerecognition amount at the end of periodAmount not derecognized at the end of periodBank acceptance bill1,379,604,571Digital debt voucher of accounts receivable33,809,204Total1,413,413,775
(4). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not ApplicableProvision for bad debts is calculated based on the general model of expected credit loss?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of receivables nancing with changes in provisions for losses inthe current period:
?Applicable√ Not Applicable
(5). Provision for bad debts
?Applicable√ Not Applicable
ANNUAL REPORT2023
The recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(6). Receivables nancing actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of receivables nancing?Applicable√ Not ApplicableNote to write-o:
?Applicable√ Not Applicable
(7). Increase or decrease and changes in fair value of receivables nancing in the current period:
?Applicable√ Not Applicable
(8). Other description:
?Applicable√ Not Applicable
8. Advances to suppliers
(1). Presentation of advances to suppliers by account age
√Applicable? Not Applicable
Unit: Yuan Currency: CNYAging
December 31, 2023December 31, 2022AmountProportion (%)AmountProportion (%)Within 1 year1,209,014,80492821,657,082861-2 years43,155,573326,224,98532-3 years24,603,752218,112,9422Over 3 years37,059,934385,217,4139Total1,313,834,063100951,212,422100Explanation of the reasons why the advances to suppliers with the aging over one year and a signicant amount is notsettled in time:
As at December 31, 2023, the advances to suppliers of the Company with the aging over one year was RMB 104,819,259 (asat December 31, 2022: RMB 129,555,340), mainly the advances to suppliers for the procurement of imported parts, whichhas not been yet settled because the purchased imported parts have not yet received.
(2). Top 5 advances to suppliers in terms of ending balance presented by prepaid object
√Applicable? Not Applicable
December 31, 2023Proportion in total ending balance of prepayment(%)Total advances to suppliers of top 5 balances411,011,68031Total411,011,68031Other description?Applicable√ Not Applicable
9. Other receivables
Item presentation√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022
Interest receivableDividends receivable8,000,000Other receivables1,245,727,441987,545,297Total1,245,727,441995,545,297Other description:
?Applicable√ Not ApplicableInterest receivable
(1). Classication of interest receivable
?Applicable√ Not Applicable
(2). Signicant overdue interest
?Applicable√ Not Applicable
(3). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
(4). Provision for bad debts is calculated based on the general model of expected credit loss
?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of interests receivable with changes in provisions for losses in thecurrent period:
?Applicable√ Not Applicable
(5). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(6). Interests receivable actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of interests receivable?Applicable√ Not ApplicableNote to write-o:
√Applicable? Not ApplicableOther description:
?Applicable√ Not Applicable
ANNUAL REPORT2023
(7). Dividends receivable
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem (or the invested entity)December 31, 2023December 31, 2022Suzhou Chuanglian Electric Drive Co., Ltd.8,000,000Total8,000,000
(8). Signicant dividends receivable aging over 1 year
?Applicable√ Not Applicable
(9). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
(10). Provision for bad debts is calculated based on the general model of expected credit loss
?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of dividends receivable with loss provision changes in the currentperiod:
?Applicable√ Not Applicable
(11). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(12). Dividends receivable actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of dividends receivables?Applicable√ Not ApplicableNote to write-o:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not ApplicableOther receivables
(13). Disclosure by aging
√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
AgingDecember 31, 2023December 31, 2022
Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year1,041,458,135889,793,8741-2 years185,596,565107,718,6932-3 years67,413,07514,649,282Over 3 years3-4 years5,824,5138,519,0284-5 years1,837,70243,062,407Over 5 years228,825,263188,072,813Total1,530,955,2531,251,816,097
(14). Classication by nature of funds
√Applicable? Not Applicable
Unit: Yuan Currency: CNYNature of fundsDecember 31, 2023December 31, 2022Unpaid taxes receivable794,770,088385,097,393Secured repayment164,124,678164,124,678Receivables from third parties157,909,657155,389,892Bid and performance bond123,271,71480,063,435Lease payment receivable48,652,49641,353,253Customs-related security deposit47,556,497267,023,626Money on call for product eld service16,569,23123,907,573Sta borrowings receivable12,300,81113,446,973Export rebates12,141,2327,654,374Others153,658,849113,754,900Total1,530,955,2531,251,816,097
(15). Provision for bad debts
√Applicable? Not Applicable
Unit: Yuan Currency: CNYProvision for bad debts
Stage IStage IIStage III
TotalExpected credit losses overthe next 12 months
Expected credit loss for theentire duration (no credit
impairment)
Expected credit loss forthe entire duration (creditimpairment has occurred)Balance as at January 1, 202333,506,509230,764,291264,270,800Balance as at January 1, 2023 in currentperiod--Transferred to Stage II--Transferred to Stage III--Reversal to Stage II--Reversal to Stage IProvision in the current period20,957,01220,957,012Reversal in the current periodWrite-o in the current periodCharge-o in the current periodOther changesBalance as at December 31, 202354,463,521230,764,291285,227,812
ANNUAL REPORT2023
Description of significant changes in book balance of other receivables with changes in loss provision in the currentperiod?Applicable√ Not ApplicableThe amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of nancialinstruments has increased signicantly:
?Applicable√ Not Applicable
(16). Provision for bad debts
?Applicable√ Not ApplicableIncluding the reversed or recovered provision for bad debts with signicant amount in the current period:
?Applicable√ Not Applicable
(17). Other receivables actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of other receivables:
?Applicable√ Not ApplicableExplanation of write-o of other receivables:
?Applicable√ Not Applicable
(18). Top 5 other receivables in terms of ending balance presented by debtor
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
NameDecember 31, 2023
Proportion in thetotal balance of other
receivables (%)
NatureAging
Balance of provisionfor bad debts at theend of the yearOther receivables 1437,759,56629Customs-related security depositWithin 1 year-Other receivables 2164,124,67811Secured repaymentOver 5 years164,124,678Other receivables 365,462,8964
Taxes on outstanding payment
receivable
4-5 years43,161,841Other receivables 454,433,2154Advance payment3-7 years54,433,215Other receivables 554,202,3364Receivables from related partiesWithin 1 year-Total775,982,69152//261,719,734
(19). Presented in other receivables due to centralized fund management
?Applicable√ Not ApplicableOther description:
√Applicable? Not Applicable2023
Book balanceProvision for bad debts
Book valueAmountProportion (%)AmountAccruing proportion (%)Provision for bad debts accrued on anindividual basis
230,764,70915230,764,709100-Account receivable accrued for provision ofbad debts according to the portfolio of thecredit risk characteristics Provision for baddebts
1,300,190,5448554,463,10341,245,727,441Total1,530,955,253100285,227,812191,245,727,441
Section X Financial Report
Other signicant receivables with provision for bad debts accrued on an individual basis are as follows:
20232022Book balance
Provision for bad
debts
Proportion ofprovision (%)
Reason for provisionBook balance
Provision forbad debts
Other receivables 1164,124,678164,124,678100
Contract disputes Shortageof funds of the other party
164,124,678164,124,678Other receivables 254,433,21554,433,215100Contract dispute54,433,21554,433,215Total218,557,893218,557,893218,557,893218,557,893As at December 31, 2023, other receivables with provision for bad debts accrued by portfolio are as follows:
Book balanceProvision for impairmentProportion of provision (%)Aging risk portfolio1,300,190,54454,463,1034
10. Inventories
(1). Classication
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
December 31, 2023December 31, 2022Book balance
Provision for inventory
depreciation/ provisionfor impairment of contractperformance cost
Book valueBook balance
Provision for inventorydepreciation/ provisionfor impairment of contractperformance cost
Book valueRaw materials3,675,673,90741,709,5523,633,964,3553,563,755,66651,313,4903,512,442,176Goods in process21,287,200,068827,924,45320,459,275,61518,402,900,715651,631,43317,751,269,282Stock commodities26,832,90126,832,90120,380,324-20,380,324Revolving materialsConsumptivebiological assetsContractperformance cost
161,329,305161,329,305229,287,566229,287,566Total25,151,036,181869,634,00524,281,402,17622,216,324,271702,944,92321,513,379,348
(2). Provision for inventory depreciation and provision for impairment of contract performance cost
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022
Increase in the current periodDecrease in the current period
December 31, 2023ProvisionOtherReversal or write- oOtherRaw materials51,313,49011,955,120-21,559,05841,709,552Goods in process651,631,433347,855,229-171,562,209827,924,453Stock commoditiesRevolving materialsConsumptivebiological assetsContractperformance costTotal702,944,923359,810,349-193,121,267869,634,005Reasons for reversing or writing o the provision for inventory depreciation in the current period?Applicable√ Not Applicable
ANNUAL REPORT2023
Accrual of provision for inventory depreciation by portfolio√Applicable? Not Applicable
Unit: Yuan Currency: CNYName of portfolio
December 31, 2023December 31, 2022Book balance
Depreciationprovision
Ratio of provisionfor inventorydepreciation (%)
Book balance
Depreciation
provision
Ratio of provision
for inventorydepreciation (%)
Sub-total of itemswithin 1 year
3,201,984,5823,131,101,1961-2 years250,956,516159,290,9892-3 years50,082,3042,477,163556,959,2883,059,3605Over 3 years172,650,50539,232,38923216,404,19348,254,13022Total3,675,673,90741,709,5523,563,755,66651,313,490
Standards of accrual of provision for inventory depreciation by portfolio?Applicable√ Not Applicable
(3). The amount of capitalized borrowing costs c included in ending balance of inventories and its calculation standards
and basis?Applicable√ Not Applicable
(4). Description of the current amortization amount of contract performance cost
?Applicable√ Not ApplicableOther description√Applicable? Not Applicable
Specic basis for determination of net realizable values
Reasons for provision for depreciation ofinventories reversed or written-o in the
current yearRaw materials andoutsourced parts andcomponents
Dierence between the net realizable value of raw materials and outsourcedparts and components and their book value resulting from product price fall
Value recovery, consuming or external salesGoods in process
Dierence between the net realizable value and the book value of goods inprocess
Value recovery, transferred for self-use or
external salesTotal amount of possible penalties for failure to fulll the obligations as contracted:
20232022Valid letter of guarantee signed by the bank16,938,583,23014,198,954,467Letter of guarantee not signed by the bank7,058,112,0028,124,948,765Total23,996,695,23222,323,903,232
11. Assets held for sale
?Applicable√ Not Applicable
12. Non-current assets due within one year
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Debt investment due within one yearOther debt investments due within one yearLong-term receivables due within one year1,341,408,631900,213,411Total1,341,408,631900,213,411
Section X Financial ReportDebt investment due within one year?Applicable√ Not ApplicableOther debt investments due within one year?Applicable√ Not Applicable
13. Other current assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022Contract acquisition costReturn cost receivableInput tax to be deducted459,437,837261,819,250Prepaid income tax17,288,54417,248,091Total476,726,381279,067,341
14. Debt investment
(1). Particulars about debt investment
?Applicable√ Not ApplicableChanges in provision for impairment of debt investments in the current period?Applicable√ Not Applicable
(2). Important debt investment at the end of the period
?Applicable√ Not Applicable
(3). Provision for impairment
?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of debt investments with changes in provisions for losses in thecurrent period:
?Applicable√ Not ApplicableThe amount of provision for impairment in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly?Applicable√ Not Applicable
(4). Actual write-o of debt investments in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of debt investments?Applicable√ Not ApplicableExplanation of write-o of debt investments:
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
15. Other debt investments
(1). Particulars about other debt investments
?Applicable√ Not Applicable
ANNUAL REPORT2023Changes in provision for impairment of other debt investments in the current period?Applicable√ Not Applicable
(2). Important other debt investments at the end of the period
?Applicable√ Not Applicable
(3). Provision for impairment
?Applicable√ Not ApplicableExplanation of signicant changes in the book balance of other debt investments with changes in provisions for losses inthe current period:
?Applicable√ Not ApplicableThe amount of provision for impairment in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly?Applicable√ Not Applicable
(4). Other debt investments actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of other debt investments?Applicable√ Not ApplicableExplanation of write-o of debt investments:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
16. Long-term receivables
(1). Long-term receivables
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Item
December 31, 2023December 31, 2022
Discountrate rangeBook balance
Provision forbad debt
Book valueBook balance
Provision forbad debt
Book valueFinancing leaseIncluding: Unrealized financingincomeGoods sold on installmentServices provided on installmentReceivables from“Building –Transfer” project- Principal2,440,824,5812,440,824,5813,057,984,5033,057,984,503- Interest receivable357,766,509357,766,509244,494,473244,494,473Less: Long-term receivables duewithin one year
1,341,408,6311,341,408,631900,213,411900,213,411Total1,457,182,4591,457,182,4592,402,265,5652,402,265,565/
Section X Financial Report
As at December 31, 2023 and December 31, 2022, the account receivable from“Building – Transfer”project was theprincipal invested in above“Building – Transfer”project by the Group, and the amount of interest receivable was thenancing return recognized based on the contract.As at December 31, 2023, the long-term accounts receivable was RMB 1,435,459,418 (as at December 31, 2022: RMB2,212,190,758), which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 3,142,068,341(as at December 31, 2022: Long-term borrowings of RMB 2,469,639,584).
(2). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
(3). Provision for bad debts is calculated based on the general model of expected credit loss
?Applicable√ Not ApplicableDescription of signicant changes in the book balance of long-term receivables with changes in provisions for losses inthe current period:
?Applicable√ Not ApplicableThe amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of nancialinstruments has increased signicantly?Applicable√ Not Applicable
(4). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not Applicable
(5). Long-term receivable actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of long-term receivables:
?Applicable√ Not ApplicableExplanation of write-o of long-term receivables:
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
ANNUAL REPORT2023
17. Long-term equity investments
(1). Long-term equity investments
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Invested entity
December 31,2022
Increase/decrease in the current period
December 31,2023Provision forimpairmentat the end ofthe year
Further
investmentReducedinvestmentProt or losson investmentsunder the equitymethodAdjustmentof othercomprehensiveincomeChanges inother equity
Dividendsor prot
declared to bedistributedProvision for
impairmentOther
I. Joint venturesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd364,936,0811,466,212366,402,293ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi396,69275,782472,474ZPMC-OTL MARINE CONTRACTOR LIMITEDZhenhua Marine Energy (HK) Co., Ltd. (i)Cranetech Global Sdn. Bhd.632,180632,180Sub-total365,964,9531,541,994367,506,947II. AssociatesCCCC Financial Leasing Co., Ltd (i)674,329,53372,459,680-816,869-19,561,335-104,370,656622,040,353CCCC Yancheng Construction Development Co., Ltd.418,516,242418,516,242CCCC Estate Yixing Co., Ltd.206,795,4814,862,637211,658,118CCCC South American Regional Company SARL194,391,003-7,397,705-894,845186,098,453China communications Construction USA Inc.59,980,865261,190993,30661,235,361CCCC Photovoltaic Technology Co., Ltd (iii)34,819,763873,71335,693,476ZPMC Changzhou Coatings Co., Ltd.17,759,4735,843,35423,602,827Suzhou Chuanglian Electric Drive Co., Ltd.12,632,366-72,93412,559,432CCCC Xiongan Urban Construction Development Co., Ltd. (ii)7,540,33332,9367,573,269Shanghai Ocean Engineering Equipment Manufacturing InnovationCenter Co., Ltd.
5,508,011-812,4094,695,602
ZPMC Southeast Asia Pte. Ltd4,070,835827,4654,898,300Shanghai Xingyi Construction Technology Co., Ltd.571,067-391,825179,242CCCC Marine Engineering & Technology Research Center Co., Ltd.Sub-total1,636,914,97276,486,102-718,408-19,561,335-104,370,6561,588,750,675Total2,002,879,92578,028,096-718,408-19,561,335-104,370,6561,956,257,622
Section X Financial Report
(2). Impairment test of long-term equity investments
?Applicable√ Not ApplicableOther descriptionJoint ventures:
On May 5, 2014, the subsidiary of the Company and the partner invested to establish Zhenhua Marine Energy (Hong Kong)Co., Ltd (Zhenhua Marine Energy). The registered capital is USD 5,969,998. The subsidiary of the Company contributedUSD 3,044,699 with the shareholding ratio of 51%. Zhenhua Marine Energy focused on the vessel transportation business.Based on the regulations of the shareholder agreement, the important events of such company shall be agreed by at least75% shareholders via voting. Hence, the Group has no control right but jointly controls Zhenhua Marine Energy togetherwith the partner.Associates:
(i) On December 31, 2021, the Company transferred its 21% equity in CCCC Financial Leasing Co., Ltd to CCCC CapitalHoldings Co., Ltd. by way of non-disclosure agreement. Both parties have agreed that the transition period of theaforesaid equity transfer is from July 1, 2021 to December 31, 2021, the prot or loss of the aforesaid equity during thetransition period was determined based on the audited nancial statements on June 30, 2021 and the audited nancialstatements of 2021 of CCCC Financial Leasing Co., Ltd., and the prot or loss of the target equity during the transitionperiod shall be enjoyed or borne by the Company. On August 28, 2023, CCCC Financial Leasing Co., Ltd. signed a capitalincrease and share expansion agreement with each shareholder. Other shareholders increased their capital by a total ofRMB 3.5 billion, and the Company’s shareholding ratio dropped to 5.82%.According to relevant provisions of the Articlesof Association, after the equity sale, the Company has the right to appoint one director to it, and can exert signicantinuence on the company.(ii) On June 23, 2020, the Company invested to establish CCCC Xiongan Urban Construction Development Co., Ltd. Theregistered capital was RRMB 100,000,000. The Company contributed RMB 15,000,000 with the shareholding ratio of 15%.The company was mainly engaged in the engineering construction. According to relevant provisions of the Articles ofAssociation, the Company has the right to appoint one director to CCCC Xiongan Urban Construction Development Co.,Ltd, and can exert signicant inuence on the company.(iii) On November 28, 2022, the Company invested to establish CCCC Photovoltaic Technology Co., Ltd. The registeredcapital was RMB 200,000,000. The Company contributed RMB 60,000,000 with the shareholding ratio of 30%. Thecompany was mainly engaged in photovoltaic power generation business. According to relevant provisions of the Articlesof Association, the Company has the right to appoint one director to CCCC Photovoltaic Technology Co., Ltd, and canexert signicant inuence on the company.
ANNUAL REPORT2023
18. Other equity instrument investment
(1). Particulars about other equity instrument investment
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Item
December31, 2022
Increase/decrease in the current period
December
31, 2023Dividendincomerecognizedin the currentperiodAccumulatedgains includedin othercomprehensiveincomeAccumulatedlosses includedin othercomprehensiveincomeReasons for nancialassets designated to
be measured at fairvalue through other
comprehensive income
Further
investment
Reduced
investmentGains included
in other
comprehensive
income in the
current periodLosses included
in other
comprehensive
income in the
current periodOthers
Hunan Fengri Power & Electric Co.,Ltd.
30,657,862706,62729,951,235335,7909,953,075
Strategic investment,
long-term holding
CCCC Highway Bridges NationalEngineering Research Centre Co., Ltd.
22,151,6702,835,32924,986,99911,986,999
Strategic investment,
long-term holding
Jiangsu Zhangjinggao Bridge Co.,Ltd.
16,790,00016,790,000
Strategic investment,
long-term holding
Ningbo Weilong Port Machinery Co.,Ltd.
5,825,1952,000,0007,507,98115,333,17612,037,176
Strategic investment,
long-term holding
CCCC National Engineering ResearchCenter of Dredging Technology andEquipment Co., Ltd.
8,938,1701,502,32510,440,4954,040,495
Strategic investment,
long-term holding
Shenyang Weichen Crane EquipmentCo., Ltd.
5,205,3001,412,3546,617,6545,117,654
Strategic investment,
long-term holding
Shanghai Longchang LiftingEquipment Co., Ltd. (formerlyknown as: ZPMC Longchang LiftingEquipment Co., Ltd.; ShanghaiZhenhua Port Machinery (Group)Longchang Lift Equipment Co. Ltd.)
697,42242,393739,81560,184
Strategic investment,
long-term holding
21st Century Science and TechnologyInvestment Co., Ltd.
30,000,000Strategic investment,
long-term holding
Total73,475,61918,790,00013,300,382706,627104,859,374335,79043,135,39930,060,184/
(2). Derecognition in the current period
?Applicable√ Not Applicable
Other description:
?Applicable√ Not Applicable
Section X Financial Report
19. Other non-current nancial assets
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
20. Investment properties
Measurement model of investment properties
(1). Investment properties with cost measurement mode
Unit: Yuan Currency: CNYItem
Buildings andconstructions
Land use right
Construction in
progress
TotalI. Original book value
1. Balance as at December 31, 2022555,622,992209,845,794765,468,786
2. Increase in current period
(1) Outsourcing
(2) Transfer-in of inventories, xed assets and construction in progress
(3) Increase in business combination
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2023555,622,992209,845,794765,468,786II. Accumulative depreciation and amortization
1. Balance as at December 31, 2022245,696,66882,277,983327,974,651
2. Increase in current period17,174,4735,388,23422,562,707
(1) Provision or amortization17,174,4735,388,23422,562,707
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2023262,871,14187,666,217350,537,358III. Provision for impairment
1. Balance as at December 31, 2022
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2023
IV. Book value
1. Book value at the end of the period292,751,851122,179,577414,931,428
2. Book value at the beginning of the period309,926,324127,567,811437,494,135
(2). Investment property without certicate of title
?Applicable√ Not Applicable
(3). Impairment test of investment properties using cost measurement model
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
ANNUAL REPORT2023
21. Fixed assets
Item presentation?Applicable√ Not ApplicableOther description:
?Applicable√ Not ApplicableFixed assets
(1). Particulars about xed assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Buildings andconstructions
Machineryequipment
Oce andelectronicequipment
Transportation
facilities(Excluding ship)
ShipTotalI. Original book value
1. Balance as at December 31, 202211,351,333,9917,169,779,666354,710,027242,307,02417,021,873,83136,140,004,539
2. Increase in current period218,248,239229,803,71519,737,94116,976,788118,705,841603,472,524
(1) Purchase44,892,141142,114,78918,236,83816,976,78836,739,513258,960,069
(2) Transfer-in of construction in
progress
173,356,09886,515,2141,107,72913,481,579274,460,620
(3) Increase in business combination
(4) Exchange rate changes?1,173,712393,37468,484,74970,051,835
3. Decrease in current period28,965,274267,986,48115,933,93921,416,85394,784,341429,086,888
(1) Disposal or scrap28,965,274267,986,48115,933,93921,416,85394,784,341429,086,888
4. Balance as at December 31, 202311,540,616,9567,131,596,900358,514,029237,866,95917,045,795,33136,314,390,175II. Accumulated depreciation
1. Balance as at December 31, 20224,971,080,1545,633,512,574246,225,256166,126,1804,459,947,34515,476,891,509
2. Increase in current period367,397,563221,791,57735,798,81612,947,638605,819,3551,243,754,949
(1) Provision367,397,563220,730,57735,605,13212,947,638594,502,5331,231,183,443
(2) Exchange rate changes1,061,000193,68411,316,82212,571,506
3. Decrease in current period14,708,732261,852,50916,158,97018,274,18586,144,234397,138,630
(1) Disposal or scrap14,708,732261,852,50916,158,97018,274,18586,144,234397,138,630
4. Balance as at December 31, 20235,323,768,9855,593,451,642265,865,102160,799,6334,979,622,46616,323,507,828III. Provision for impairment
1. Balance as at December 31, 2022
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal or scrap
4. Balance as at December 31, 2023
IV. Book value
1. Book value at the end of the period6,216,847,9711,538,145,25892,648,92777,067,32612,066,172,86519,990,882,347
2. Book value at the beginning of the
period
6,380,253,8371,536,267,092108,484,77176,180,84412,561,926,48620,663,113,030
(2). Temporary idle xed assets
?Applicable√ Not Applicable
(3). Fixed assets leased out through operating lease
√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
ItemBook value at the end of the period
Vessel3,059,506,943
(4). Fixed assets without certicate of title
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemBook valueReasons for pending certicate of title
Buildings and constructions131,544,590Related procedures are still in process
(5). Impairment test of xed assets
?Applicable√ Not ApplicableOther description:
√Applicable? Not ApplicableAs at December 31, 2023, the following xed assets were taken as loan mortgage:
Original priceBook value
BorrowingsNatureAmountVessel2,869,401,2702,447,188,251Long-term payables1,450,784,119As at December 31, 2022, the following xed assets were taken as loan mortgage:
Original priceBook value
BorrowingsNatureAmount
Vessel2,784,670,6902,463,807,041Long-term payables1,658,661,470As at December 31, 2023 and December 31, 2022, the book values of xed assets for operating lease were as follows:
ShipTotalOriginal priceBalance at the beginning of the current year3,467,218,0003,467,218,000Balance at the end of the current year3,467,218,0003,467,218,000Accumulated depreciationBalance at the beginning of the current year(275,956,773)(275,956,773)Provision(131,754,284)(131,754,284)Balance at the end of the current year(407,711,057)(407,711,057)Book valueAt the end of 20233,059,506,9433,059,506,943At the beginning of 20233,191,261,2273,191,261,227As at December 31, 2023, the xed assets with pending certicate of title were as follows:
Book valueReasons for pending certicate of title
Buildings and constructions131,544,590Related procedures are still in processLiquidation of xed assets?Applicable√ Not Applicable
22. Construction in progress
Item presentation?Applicable√ Not Applicable
ANNUAL REPORT2023
Other description:
?Applicable√ Not ApplicableConstruction in progress
(1). Particulars about construction in progress
√Applicable? Not Applicable
Unit: Yuan Currency: CNYProject
December 31, 2023December 31, 2022Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book value
Large machinery and engineering equipment ofthe base under construction
4,835,173,3864,835,173,3864,541,537,2854,541,537,285Large mechanical reconstruction and upgradingproject
152,526,447152,526,44723,250,60823,250,608Infrastructure construction of Changxing Base150,003,066150,003,066127,496,938127,496,938Infrastructure construction of Nantong Base46,772,64546,772,645145,778,657145,778,657Infrastructure construction of Nanhui Base44,99044,990750,564750,564Total5,184,520,5345,184,520,5344,838,814,0524,838,814,052
(2). Changes of major construction in progress
√Applicable? Not Applicable
Unit: Yuan Currency: CNYProjectBudget
December31, 2022
Increase inthe currentperiod
Amounttransferredinto xedassets inthe currentperiod
Otherdecreasesin thecurrentperiodDecember31, 2023Proportion ofcumulativeprojectinvestmentin budget (%)
Constructionprogress
Cumulative
amountof interestcapitalized
Including:
capitalizationof the interestin the current
period
Capitalization
rate for theinterest inthe currentperiod (%)
Fundsource
Infrastructureconstruction ofNantong Base
8,262,896,771145,778,65942,361,673141,367,68746,772,6458585
Self-ownedfundsInfrastructureconstruction ofChangxing Base
9,109,560,500127,496,93824,091,6331,585,505150,003,066808023,531,836
Self-ownedfunds andbank loansLarge machineryand engineeringequipment ofthe base underconstruction
11,668,733,3904,541,537,282414,492,276113,283,7397,572,4334,835,173,3868686335,694,14814,254,4562.15
Self-ownedfunds andbank loansInfrastructureconstruction ofNanhui Base
562,287,425750,565563,9771,269,55244,9908888
Self-ownedfundsLarge mechanicalreconstruction andupgrading project
2,763,256,71023,250,608146,229,97616,954,137152,526,4476767
Self-ownedfundsTotal32,366,734,7964,838,814,052627,739,535274,460,6207,572,4335,184,520,534//359,225,98414,254,456//
(3). Provision for impairment of construction in progress in the current period
?Applicable√ Not Applicable
(4). Impairment test of constructions in progress
?Applicable√ Not ApplicableOther description?Applicable√ Not ApplicableEngineering materials
Section X Financial Report
(5). Particulars about engineering materials
?Applicable√ Not Applicable
23. Productive biological assets
(1). Productive biological assets with cost measurement model
?Applicable√ Not Applicable
(2). Impairment test of productive biological assets using cost measurement model
?Applicable√ Not Applicable
(3). Productive biological assets measured by fair value
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
24. Oil and gas assets
(1). Oil and gas assets
?Applicable√ Not Applicable
(2). Impairment test of oil and gas assets
?Applicable√ Not ApplicableOther descriptionNone
25. Right-of-use assets
(1). Right-of-use assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Buildings andconstructions
Other equipmentTotal
I. Original book value
1. Balance as at December 31, 202231,335,5353,619,84634,955,381
2. Increase in current period67,114,955152,40067,267,355
3. Decrease in current period13,589,86013,589,860
4. Balance as at December 31, 202384,860,6303,772,246?88,632,876?II. Accumulated depreciation
1. Balance as at December 31, 202220,030,6942,993,23623,023,930
2. Increase in current period16,066,291502,33516,568,626?
(1) Provision16,066,291502,335?16,568,626?
3. Decrease in current period13,589,86013,589,860
(1) Disposal13,589,86013,589,860?
4. Balance as at December 31, 202322,507,1253,495,571?26,002,696?III. Provision for impairment
1. Balance as at December 31, 2022
2. Increase in current period
(1) Provision
3. Decrease in current period
ANNUAL REPORT2023
Item
Buildings andconstructions
Other equipmentTotal
(1) Disposal
4. Balance as at December 31, 2023
IV. Book value
1. Book value at the end of the period62,353,505276,675?62,630,180
2. Book value at the beginning of the period11,304,841626,610?11,931,451
(2). Impairment test of right-of-use assets
?Applicable√ Not ApplicableOther description:
None
26. Intangible assets
(1). Particulars about intangible assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Land userightPatent right
Software use
feeProprietarytechnology
PPP projectTotalI. Original book value
1. Balance as at December 31, 20224,208,638,496104,779,49665,296,171375,142,8034,753,856,966
2. Increase in current period21,058,386665,181,591686,239,977
(1) Purchase13,485,953665,181,591678,667,544
(2) Internal R & D
(3) Increase in business combination
(4) Carried-over from construction under construction?7,572,433??7,572,433?
3. Decrease in current period60,711,874447,73561,159,609
(1) Disposal60,711,874447,73561,159,609
4. Balance as at December 31, 20234,147,926,622125,390,14765,296,1711,040,324,3945,378,937,334II. Accumulated amortization
1. Balance as at December 31, 20221,062,905,98471,911,40465,201,8071,200,019,195
2. Increase in current period86,032,27212,245,70198,277,973
(1) Provision86,032,27212,245,70198,277,973
3. Decrease in current period12,778,92212,778,922
(1) Disposal12,778,92212,778,922
4. Balance as at December 31, 20231,136,159,33484,157,10565,201,8071,285,518,246III. Provision for impairment
1. Balance as at December 31, 2022
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 2023
IV. Book value
1. Book value at the end of the period3,011,767,28841,233,04294,3641,040,324,3944,093,419,088
2. Book value at the beginning of the period3,145,732,51232,868,09294,364375,142,8033,553,837,771Remark 1: This item represents the portion that recognizes the consideration amount or the recognized construction revenue amount of relevant PPPproject assets as intangible assets in accordance with the requirements of“Interpretation of Accounting Standards for Business Enterprises No. 14”, and thecontract assets recognized during the relevant construction period should be presented in the“Intangible assets”item in the balance sheet. As of December31, 2023, the Group has two PPP projects under the intangible asset model, both of which are under construction. The total investment of the project is RMB
Section X Financial Report
3.07 billion, and the accumulated investment is RMB 1.04 billion.
In 2023, total technology research and development expenses of the Group amounted to RMB 1,311,556,665 (2022: RMB 1,118,337,091). These technologyresearch and development expenses are not capitalized.
(2). Land use right without certicate of title
?Applicable√ Not Applicable
(3). Impairment test of intangible assets
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
27. Goodwill
(1). Original book value of goodwill
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Name of the invested entity or the mattersforming goodwill
December 31,
2022
Increase in current period
Decrease in currentperiodDecember 31,2023Formed by businesscombination
OtherDisposalOtherZPMC Qidong Marine Engineering Co., Ltd.149,212,956149,212,956Verspannen B.V.5,412,8075,412,807Greenland Heavy lift (Hong Kong) Limited113,619,9301,926,674115,546,604Total268,245,6931,926,674270,172,367
(2). Provision for impairment of goodwill
?Applicable√ Not Applicable
(3). Information about the asset group or portfolio of the goodwill
?Applicable√ Not ApplicableChanges in asset group or combination of asset groups?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
(4). Specic method for determining the recoverable amount
The recoverable amount is determined based on the net amount after deducting disposal costs from the fair value?Applicable√ Not ApplicableThe recoverable amount is determined based on the present value of expected future cash ows?Applicable√ Not ApplicableReasons for discrepancies between the foregoing information and the information used in impairment test in previousyears or external information?Applicable√ Not ApplicableReasons for discrepancies between the information used in impairment test in previous years by the Company and theactual conditions of the current year?Applicable√ Not Applicable
ANNUAL REPORT2023
(5). Performance commitment and corresponding goodwill impairment
There is a performance commitment when goodwill is formed and the reporting period or the period before thereporting period is within the performance commitment period?Applicable√ Not ApplicableOther description√Applicable? Not ApplicableRemark 1: The decrease in the current year was caused by the translation dierences of foreign currency statement.As at December 31, 2023, the Group had no provision for the impairment of goodwill. When the impairment test isconducted, the book value of goodwill is amortized to the asset group portfolio expected to benet from the synergisticeect of business combination.The goodwill acquired through business combination has been distributed to the following asset groups for impairmenttest:
? Heavy equipment asset group? Semi-submerged ship transport assets group of Greenland Heavylift (Hongkong) Limited (GHHL)Heavy equipment asset groupThe heavy equipment asset portfolio is mainly composed of various types of heavy equipment produced in collaborationby various production bases, which is consistent with the combination of asset groups determined by the impairmenttest of previous years. The beneciary of the synergy eect from the acquisition of ZPMC Qidong Marine Engineering Co.,Ltd. and Verspannen B.V. is the entire combination of asset groups of heavy equipment, and it is dicult to allocate toeach asset group, so the goodwill is allocated to the combination of asset groups of heavy equipment. The recoverableamount of heavy equipment asset group is measured based on the five-year budget approved by the managementand shall be measured with cash ow forecast method. Cash ow over 5-year period shall be calculated based on theestimated growth rate.The main assumptions of the future cash ow discount method:
Growth rate during forecast period8.87%-17.09%Perpetual growth rate2.30%Gross prot rate14.06%-15.53%Pre-tax discount rate12.72%
GHHL semi-submerged ship transport assets groupThe combination of asset group of GHHL semi-submersible vessel transport is primarily composed of four semi-submersible vessels., which is consistent with the combination of asset groups determined by the impairment test ofprevious years. The recoverable amount is determined based on the expected future cash ow of the combination ofasset group, and the expected future cash ow is determined according to the cash ow forecast based on the transportservice contract revenue expected to be obtained within the service life of vessel.The main assumptions of the future cash ow discount method:
Number of customized short-distance and long-distance transport servicecontracts expected to be obtained
4/year/vesselVessel utilization rate of general charter party62.15%-84.66%Charter rate of general charter partyUSD 60,000/dayPre-tax discount rate11.00%
The distributions of the book value of goodwill to asset groups are as follows:
Heavy equipment asset groupCHHL semi-submerged ship transport assets groupTotal
20232022 20232022 20232022
Book amount of goodwill154,625,763154,625,763115,546,604113,619,930270,172,367268,245,693
Section X Financial Report
The perpetual growth rate adopted by management does not exceed the industry's long-term average growth rate.Based on the historical experience and the forecasts of market development, the management determines the budgetgross prot rate and adopts the pretax interest rate which can reect the specic risk of relevant asset group portfolio asthe discount rate. The above assumptions are used to analyze the recoverable amount of the asset group portfolio.
28. Long-term deferred expenses
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022
Increase in thecurrent period
Amortization in the
current period
Other decreasesDecember 31, 2023Improvement expenditure of fixedassets under operating lease
409,870685,35439,2411,055,983Total409,870685,35439,2411,055,983Other description:
None
29. Deferred income tax assets/liabilities
(1). Deferred income tax assets before osetting
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
December 31, 2023December 31, 2022Deductible temporary
dierences
Deferred income tax
assets
Deductible temporary
dierences
Deferred income tax
assets
Provision for impairment of assets3,507,168,898528,354,7283,091,053,227457,057,874Unrealized prots of internal transactions99,413,44014,912,016184,945,33327,741,800Estimated liabilities147,187,31422,078,097146,025,37821,903,807Wages and salaries unpaid29,335,0754,400,26129,183,7424,377,561Interest unpaid16,042,7102,406,40727,094,8404,064,225Deductible loss2,374,214,264356,132,1402,602,902,080390,435,312Unrealized contract gross prot42,585,4566,387,81881,347,55112,202,133Lease liabilities88,632,87613,294,93134,955,3805,243,307Total6,304,580,033947,966,3986,197,507,531923,026,019
(2). Deferred income tax liabilities before osetting
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Item
December 31, 2023December 31, 2022Taxable temporary
dierences
Deferred income tax
liabilities
Taxable temporary
dierences
Deferred income tax
liabilities
Depreciation of xed assets826,801,337130,266,550598,916,49398,420,429Changes in fair value of held-for-trading nancial assets168,131,78725,219,768217,813,73832,716,168Changes in fair value of other equity instruments45,075,2146,761,28230,481,4594,572,219Valuation of enterprise combination assets not under thesame control
79,981,60511,997,24189,156,11313,373,417Right-of-use assets88,632,87613,294,93134,955,3805,243,307Total1,208,622,819187,539,772971,323,183154,325,540
ANNUAL REPORT2023
(3). Deferred income tax assets or liabilities presented by net amount after oset
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Item
Oset amount ofdeferred income taxassets and liabilities at
the end of the period
Balance of deferred incometax assets and liabilitiesafter oset at the end of
the period
Oset amount of deferredincome tax assets andliabilities at the beginning
of the period
Balance of deferred incometax assets and liabilitiesafter oset at the beginning
of the periodDeferred income tax assets54,267,502893,698,89655,084,568867,941,451Deferred income tax liabilities54,267,502133,272,27055,084,56899,240,972
(4). Details of unrecognized deferred income tax assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022Deductible temporary dierences810,029,865737,902,172Deductible losses1,202,607,3481,419,947,439Total2,012,637,2132,157,849,611
(5). The deductible losses on the unrecognized deferred income tax assets will become due in the following years
√Applicable? Not Applicable
Unit: Yuan Currency: CNYYearDecember 31, 2023December 31, 2022Remark
2023373,743,4272024230,620,753244,363,6282025264,416,621304,004,8572026270,525,356271,098,1072027226,737,420226,737,4202028210,307,198Total1,202,607,3481,419,947,439/Other description:
?Applicable√ Not Applicable
30. Other non-current assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
December 31, 2023December 31, 2022Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valuePPP projects completed but not settled4,095,504,9224,095,504,9223,710,497,1983,710,497,198Contract warranty balance receivable888,075,90459,009,205829,066,699526,801,14025,018,867501,782,273Advance payment for buildings33,781,74033,781,740Total4,983,580,82659,009,2054,924,571,6214,271,080,07825,018,8674,246,061,211
Other description:
As at December 31, 2023, other non-current assets of RMB 3,616,427,706 (as at December 31, 2022: RMB 3,572,872,352)were pledged to the bank as security for long-term borrowings of RMB 3,142,068,341 (as at December 31, 2022: long-termborrowings of RMB 2,469,639,584).The changes in the provision for impairment of the contract warranty balance receivable are as follows:
Section X Financial ReportBalance at the beginning of
the current year
Provision in the current yearReversal in the current year
Balance at the end of the
current year202325,018,86754,323,860(20,333,522)59,009,205202237,855,05123,662,840(36,499,024)25,018,867
31. Assets with ownership or use rights restricted
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
December 31, 2023December 31, 2022Book balanceBook value
Restrictiontype
RestrictionBook balanceBook value
Restriction
type
RestrictionOther non-current assets
3,616,427,7063,616,427,706PledgePledged borrowings3,572,872,3523,572,872,352PledgePledged borrowingsFixed assets2,869,401,2702,447,188,251MortgageMortgage borrowings2,784,670,6902,463,807,041MortgageMortgage borrowingsLong-termreceivables
1,435,459,4181,435,459,418PledgePledged borrowings2,212,190,7582,212,190,758PledgePledged borrowingsIntangible assets1,024,431,9061,024,431,906PledgePledged borrowingsAccountsreceivable
254,958,240254,958,240PledgePledged borrowings191,217,707191,217,707PledgePledged borrowingsContract assets146,326,607146,326,607PledgePledged borrowings133,406,311133,406,311PledgePledged borrowingsMonetary funds72,908,53172,908,531Margin
Special fund, L/Cdeposits, L/G deposits,etc. in the overseassupervision account
21,946,27621,946,276Margin
Special fund, L/Cdeposits, L/G deposits,etc. in the overseassupervision accountTotal9,419,913,6788,997,700,659//8,916,304,0948,595,440,445//Other description: None
32. Short-term borrowings
(1). Classication of short-term borrowings
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022
Pledged borrowingsMortgage borrowingsGuaranteed borrowingsFiduciary borrowings4,781,640,7791,793,682,952Total4,781,640,7791,793,682,952Description of the classication of short-term borrowings: None
(2). Overdue outstanding short-term borrowings
?Applicable√ Not ApplicableThe important overdue outstanding short-term borrowings are as follows:
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
33. Held-for-trading nancial liabilities
?Applicable√ Not Applicable
ANNUAL REPORT2023
Other description?Applicable√ Not Applicable
34. Derivative nancial liabilities
?Applicable√ Not Applicable
35. Notes payable
(1). Presentation of notes payable
√Applicable? Not Applicable
Unit: Yuan Currency: CNYTypeDecember 31, 2023December 31, 2022Commercial acceptance billBank acceptance bill5,533,470,5825,401,258,897Total5,533,470,5825,401,258,897The total amount of notes payable due but unpaid at the end of the period is RMB 0.
36. Accounts payable
(1). Presentation of accounts payable
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022
Payables for material purchase and product manufacturing7,509,905,4426,615,263,016Infrastructure payables627,800,506168,623,915Quality guarantee deposit payable348,169,253336,129,389Equipment and vessel purchase payables126,146,515130,110,242Port charge payable4,037,4224,996,772Total8,616,059,1387,255,123,334
(2). Important accounts payable with the aging over 1 year or overdue
?Applicable√ Not ApplicableOther description√Applicable? Not ApplicableAs of 2023, there are no important accounts payable with the aging over 1 year or overdue (2022: nil).
37. Advances from customers
(1). Presentation of advances from customers
?Applicable√ Not Applicable
(2). Important advances from customers with the aging over 1 year
?Applicable√ Not Applicable
(3). Amount of and reason for signicant changes in book value during the reporting period
?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
Section X Financial Report
38. Contract liabilities
(1). Particulars about contract liabilities
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022Advances from customers for goods17,729,437,72012,890,180,046Amount settled for uncompleted work1,501,211,476457,970,151Total19,230,649,19613,348,150,197
(2). Signicant contractual liability with the aging over more than 1 year
?Applicable√ Not Applicable
(3). Amount of and reason for signicant changes in book value during the reporting period
?Applicable√ Not ApplicableOther description√Applicable? Not ApplicableIn 2023, there were no important contract liabilities with the aging over 1 year (2022: nil). The increase in the balance ofcontract liabilities at the end of this year was due to the increase in advance payments for products received but not yetdelivered.
39. Payroll payable
(1). Presentation of payroll payable
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022Increase in current periodDecrease in current periodDecember 31, 2023I. Short-term compensation38,074,1542,165,912,0402,163,888,80140,097,393II. Post-employment benets - denedcontribution plans
343,402,784343,402,784III. Dismissal benetsIV. Other benets due within one yearTotal38,074,1542,509,314,8242,507,291,58540,097,393
(2). Presentation of short-term compensation
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022
Increase in current
period
Decrease in current
period
December 31, 2023I. Salaries, bonuses, allowances and subsidies1,736,679,1521,736,679,152II. Employee welfare83,675,74483,675,744III. Social insurance premium151,858,187151,858,187Including: medical insurance premium130,658,631130,658,631
Work-related injury insurance premium9,685,7099,685,709Maternity insurance premium11,513,84711,513,847IV. Housing provident funds6,076156,485,380156,490,983473V. Union expenditures and employee education expenses38,068,07834,922,71232,893,87040,096,920VI. Short-term paid absenceVII. Short-term prot sharing planVIII. Other short-term compensation2,290,8652,290,865Total38,074,1542,165,912,0402,163,888,80140,097,393
ANNUAL REPORT2023
(3). Presentation of dened contribution plans
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022
Increase in current
period
Decrease in current
period
December 31, 2023
1. Basic endowment insurance premium228,871,846228,871,846
2. Unemployment insurance premium7,150,2227,150,222
3. Enterprise annuity payment
4. Supplementary endowment insurance premium107,380,716107,380,716Total343,402,784343,402,784
Other description:
?Applicable√ Not Applicable
40. Tax payable
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022VAT128,853,87868,911,314Consumption taxSales taxEnterprise income tax47,342,31864,624,716Individual income tax20,428,86721,435,047Urban maintenance and construction tax61,251,49533,026,021Education surtax44,474,50624,265,964Others22,290,07025,840,813Total324,641,134238,103,875Other description:
None
41. Other payables
(1). Item presentation
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Interest payableDividends payable6,5936,593Other payables1,021,369,6671,314,681,722Total1,021,376,2601,314,688,315
Other description:
?Applicable√ Not Applicable
(2). Interest payable
Presentation by category?Applicable√ Not ApplicableOverdue signicant interests payable:
?Applicable√ Not Applicable
Section X Financial Report
Other description:
?Applicable√ Not Applicable
(3). Dividends payable
Presentation by category√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Common stock dividendsPreferred stock/perpetual debt dividends classied as equity instrumentsPreferred stock/perpetual debt dividends-XXXPreferred stock/perpetual debt dividends-XXXDividends payable -XXXDividends payable - Macau Zhenhua Harbour Construction Co., Ltd.6,5936,593Total6,5936,593Other explanations, including important dividends payable that have not been paid for more than one year, the reasonsfor non-payment shall be disclosed:
As at December 31, 2023, the reason for the dividend payable with the aging over 1 year amounting to RMB 6,593 (as atDecember 31, 2022: RMB 6,593) was that the shareholders of the Company had not requested for actual payment by theGroup.
(4). Other payables
Other payables presented by nature√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Engineering deposit and quality guarantee deposit382,408,621355,583,851Customer collection under asset-backed special program259,786,783611,100,377Amounts due to related parties125,184,85914,907,689Special payables14,963,44014,963,440Others239,025,964318,126,365Total1,021,369,6671,314,681,722
Other important payables with the aging over 1 year or overdue?Applicable√ Not ApplicableOther description:
√Applicable? Not ApplicableAging analysis of other payables is as follows:
20232022AmountProportion %AmountProportion %
Within 1 year905,317,709891,202,456,25691Over 1 year116,051,95811112,225,4669Total1,021,369,6671001,314,681,722100As at December 31, 2023, there were no other signicant payables aged over 1 year or overdue.
42. Liabilities held for sale
?Applicable√ Not Applicable
ANNUAL REPORT2023
43. Non-current liabilities due within one year
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022Long-term borrowings due within one year8,479,586,1926,543,553,353Bonds payable due within one yearLong-term payables due within one year141,133,271413,188,297Lease liabilities due within one year29,980,9264,703,568Total8,650,700,3896,961,445,218Other description: None
44. Other current liabilities
Other current liabilities?Applicable√ Not ApplicableIncrease or decrease of short-term bonds payable:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
45. Long-term borrowings
(1). Classication of long-term borrowings
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Pledged borrowings3,142,068,3412,469,639,584Mortgage borrowingsGuaranteed borrowingsFiduciary borrowings20,442,741,93025,093,486,415Less: Long-term borrowings due within one yearFiduciary borrowings-8,192,403,215-6,152,492,930Pledged borrowings-287,182,977-391,060,423Total15,105,224,07921,019,572,646Description of the classication of long-term borrowings:
NoneOther description:
√Applicable? Not ApplicableAs at December 31, 2023, the annual interest rate on the aforesaid borrowings ranges from 1.20% to 4.4% (as at December31, 2022: 1.20% to 5.46%).(i) As at December 31, 2023, the total amount of multiple pledged loans amounting to RMB 3,142,068,341 (as atDecember 31, 2022: RMB 2,469,639,584) took the long-term accounts receivable, other non-current assets, contract assetsand accounts receivable of the PPP projects of the Group as pledge. See VII (16), VII (30), VII (6) and VII (5). The interest shallbe paid quarterly, and the principal shall be repaid between June 14, 2024 and March 25, 2050 (as at December 31, 2022:
the principal shall be repaid between June 15, 2023 and August 27, 2033).
Section X Financial Report
46. Bonds payable
(1). Bonds payable
?Applicable√ Not Applicable
(2). Details of bonds payable: (Excluding other financial instruments such as preferred stocks and perpetual capital
securities classied as nancial liabilities)?Applicable√ Not Applicable
(3). Explanation of convertible corporate bonds
?Applicable√ Not ApplicableAccounting treatment and judgment basis for equity transfer?Applicable√ Not Applicable
(4). Description of other nancial instruments classied as nancial liabilities
Basic information of outstanding preferred shares, perpetual bonds and other financial instruments at the end of theperiod?Applicable√ Not ApplicableChanges in outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the period?Applicable√ Not ApplicableDescription of the basis for classifying other nancial instruments as nancial liabilities:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
47. Lease liabilities
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Buildings and constructions61,251,33111,634,161Other equipment277,779746,114Less: Lease liabilities due within one yearBuildings and constructions29,931,7023,996,022Other equipment49,224707,546Total31,548,1847,676,707Other description:
None
48. Long-term payables
Item presentation√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Long-term payables1,744,502,9831,931,340,734Special payablesTotal1,744,502,9831,931,340,734
ANNUAL REPORT2023Other description:
√Applicable? Not Applicable
20232022
Leaseback nancing fund (i)1,450,784,1191,658,661,470Ship purchase payable-208,938,000“Building - transfer” and PPP project fund (ii)262,957,217243,811,149Project quality guarantee deposit171,894,918233,118,412Less: Leaseback nancing fund due within one year141,133,271 413,188,297Total1,744,502,9831,931,340,734(i) As at December 31, 2023, the long-term payables of RMB 1,450,784,119 (as at December 31, 2022: RMB 1,658,661,470)were obtained from the vessel with the book value of RMB 2,447,188,251 (as at December 31, 2022: RMB 2,463,807,041)in leaseback way from the nancial leasing company, with the maturity date from January 24, 2024 to July 24, 2033 (as atDecember 31, 2022: from January 24, 2023 to July 24, 2033). The Group will pay the leaseback nancing fund on scheduleeach year to the nancial leasing company in accordance with the contract terms. The Group takes the above series oftransactions as mortgage loans for accounting treatment.(ii) The Group and the construction party of“building-transfer”and PPP project agreed that part of the project paymentswould be paid to the construction party after the nal acceptance of the“building-transfer” project within a certain term.Long-term payables
(1). Presentation of long-term payables by nature
?Applicable√ Not ApplicableSpecial payables
(2). Presentation of special payables by nature
?Applicable√ Not Applicable
49. Long-term payroll payable
?Applicable√ Not Applicable
50. Estimated liabilities
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022December 31, 2023Causes
External guaranteePending litigationProduct quality guarantee depositRestructuring obligationsLoss contracts to be executedRefund payableOthersEstimated after-sale service cost168,241,316168,217,597Total168,241,316168,217,597/
Other description, including relevant important assumptions and estimates of important estimated liabilities:
The Group’s estimated liabilities is the provision for after-sales service costs. The Group has formulated a budget for after-sales service costs based on the actual historical after-sales service costs of similar products in similar sales areas, whichmakes provision for estimated liabilities in accordance with the budget amount when the products are sold, and reducesthe estimated liabilities when after-sales services are actually performed.
Section X Financial Report
51. Deferred income
Deferred income√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022
Increase in current
period
Decrease in current
period
December 31, 2023CausesGovernment subsidies298,502,17965,409,61627,774,014336,137,781Land compensation33,917,2011,000,00032,917,201Total332,419,38065,409,61628,774,014369,054,982/Other description:
√Applicable? Not ApplicableAmong the above government subsidies, some projects are government subsidies related to assets, and the rest arerelated to income.Land compensation refers to the land compensation acquired by a subsidiary of the Company, which shall be amortizedover the 50 years’land use term.
52. Other non-current liabilities
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022Contract liabilitiesOutput tax to be carried forward247,185,330181,805,207Total247,185,330181,805,207Other description:
On balance sheet date, the revenue of some construction contracts and interest income of“building-transfer”projects ofthe Company had not reached the time point of the VAT liability.
53. Share capital
√Applicable? Not Applicable
Unit: Yuan Currency: CNYDecember 31, 2022
Increase/decrease (+/-)
December 31, 2023New sharesissued
Share donation
Housing fundConversion into shares
OthersSub-totalTotal shares5,268,353,5015,268,353,501Other description:
2023
Beginning balance
Increase/decrease in the current year
Ending balanceNew sharesissued
Stockdividend
Common reservescapitalizing
OtherSub-totalShares without tradinglimited conditions- RMB ordinary shares3,321,997,661-----3,321,997,661- Foreign shares listeddomestically
1,946,355,840-----1,946,355,840Total5,268,353,501-----5,268,353,501
ANNUAL REPORT20232022
Beginning balance
Increase/decrease in the current year
Ending balanceNew sharesissued
Stockdividend
Common reservescapitalizing
OtherSub-totalShares without tradinglimited conditions- RMB ordinary shares3,321,997,661-----3,321,997,661- Foreign shares listeddomestically
1,946,355,840-----1,946,355,840Total5,268,353,501-----5,268,353,501
54. Other equity instruments
(1). Basic information of outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the
period?Applicable√ Not Applicable
(2). Changes in outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the period
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Outstanding nancial instruments
Beginning
Increase in current
period
Decrease in currentperiod
EndingAmountBook valueAmountBook valueAmountBook valueAmountBook valueShanghai Zhenhua Heavy IndustriesCo., Ltd. 2022 medium-term notesseries I
5,000,000500,000,0005,000,000500,000,000Total5,000,000500,000,0005,000,000500,000,000Description of the increase and decrease of other equity instruments in the current period, reasons for changes, and basisfor relevant accounting treatment:
?Applicable√ Not ApplicableOther description:
√Applicable? Not ApplicableThe Group issued the perpetual notes on August 24, 2022, with a term of 3+N (3) years, which will survive for a long timebefore the Group redeems in accordance with the terms of issue, and will mature when the issuer redeems in accordancewith the terms of issue. The initial coupon of perpetual notes is 3.22%. In accordance with the terms of issue of medium-term notes, the Company has the right to distribute cash interest annually at annual interest rate and has no contractualobligation to repay the principal or pay any interest free of charge. Except for compulsory interest payment, on eachinterest payment date of medium-term notes, the Group may, at its own option, postpone the payment of current interestand all deferred interest and its fruits in accordance with this clause to the next interest payment date, and is not limitedby the number of deferred interest payments. On the reset date of the coupon rate of medium-term notes, the Companyhas the right to redeem the medium-term notes at face value plus interest payable (including all deferred interestpayments). The Group deems that the notes do not meet the denition of nancial liabilities and therefore classies it asother equity instruments.
55. Capital reserves
√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
ItemDecember 31, 2022
Increase in current
period
Decrease in current
period
December 31, 2023
Share premium4,537,774,5534,537,774,553Other equity changes in investees accounted for bythe equity method
19,561,335-19,561,335Business combination under common control-16,203,111-16,203,111Purchase of minority interest6,950,0386,950,038Absorption of minority shareholders’investments bysubsidiaries
185,934,67459,636,398245,571,072Transfer-in of capital reserves under the originalsystem
128,059,561128,059,561Total4,842,515,71559,636,39819,561,3354,882,590,778
Other description, including the increase and decrease in the current period and the reasons for changes:
56. Treasury stock
?Applicable√ Not Applicable
57. Other comprehensive income
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Item
December
31, 2022
Amount incurred in the current period
December31, 2023Pre-taxamount
Less: amountpreviouslyincluded inthe other
comprehensiveincome andcurrentlytransferred to
the prot or loss
Less: amountpreviouslyincluded inthe othercomprehensiveincome andcurrentlytransferred toretained earnings
Less:
income tax
Attributableto the parentcompanyafter tax
Attributable to
the minorityequity after taxI. Other comprehensive income that can’t bereclassied into prot and loss
-4,090,75912,593,7551,889,06310,704,6926,613,933Including: Remeasure the variation of netindebtedness or net asset of defined benefitplanOther comprehensive income thatcan't be reclassified into profit andloss in the invested enterprise underequity methodFair value change of other equityinstrument investments
-4,090,75912,593,7551,889,06310,704,6926,613,933Fair value change of enterprise creditrisksII. Other comprehensive income that will bereclassied into prot and loss
28,956,74634,720,67423,429,62311,291,05152,386,369Including: Other comprehensive income thatwill be reclassified into profit and loss underequity method
-6,513,064-718,408-718,408-7,231,472Fair value change of other debtinvestmentsAmount of nancial assets reclassiedinto other comprehensive incomeProvision for credit impairment ofother debt investmentsCash ow hedging reserveTranslation reserve35,469,81035,439,08224,148,03111,291,05159,617,841Total other comprehensive income24,865,98747,314,4291,889,06334,134,31511,291,05159,000,302
ANNUAL REPORT2023
Other description, including the adjustment of the initial recognition amount of the eective part of prot or loss of cashow hedging converted into the hedged item:
None
58. Special reserves
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022Increase in current BperiodDecrease in current periodDecember 31, 2023Work safety expenses2,945,56076,585,29369,005,75910,525,094Total2,945,56076,585,29369,005,75910,525,094Other description, including the increase and decrease in current period and the reasons for changes:
According to the relevant requirements of the“Administrative Measures for the Withdrawal and Use of Work SafetyExpenses”, the enterprises engaged in large-scale machinery manufacture and engineering construction shall withdrawthe work safety expenses according to the standards. The increase or decrease in current year was the work safetyexpenses withdrawn and used by the Group for the reporting year in accordance with relevant requirements.
59. Surplus reserves
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022Increase in current periodDecrease in current periodDecember 31, 2023
Statutory surplus reserves1,411,540,0087,386,3691,418,926,377Discretionary surplus reserves292,378,668292,378,668Reserve fundEnterprise development fundOthersTotal1,703,918,6767,386,3691,711,305,045Description of surplus reserves, including the increase and decrease in current period and the reasons for changes:
In accordance with the Company Law of the People Republic of China, the Company’s Articles of Association and theresolutions of the Board of Directors, the Company withdrew 10% of its net prot as statutory surplus reserves. When theaccumulated amount of statutory surplus reserves reaches 50% or more of the share capital, the Company can stop thewithdrawal.The statutory surplus reserves can be used to compensate loss upon approval, or to increase share capital. The statutorysurplus reserves withdrawn by the Company amounted to RMB 7,386,369 in 2023 (2022: RMB 24,660,180).
60. Undistributed prots
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemCurrent periodPrevious periodUndistributed prots at the end of previous period before adjustment2,825,870,6782,767,511,301Total undistributed prots at the beginning of the adjustment period (increase +, decrease -)Undistributed prots at the beginning of the period after adjustment2,825,870,6782,767,511,301Plus: Net prot attributable to owners of the parent company519,978,765371,937,232Less: withdrawal of statutory surplus reserves7,386,36924,660,180
Withdrawal of discretionary surplus reserveWithdrawal of general risk preparation
Section X Financial Report
ItemCurrent periodPrevious periodCommon stock dividends payableCommon stock dividends converted to share capitalDistribution of cash dividends on common stock263,417,675Distribution of interest on the perpetual medium-term notes13,685,00025,500,000Undistributed prots at the end of the period3,324,778,0742,825,870,678Details of undistributed prot at the beginning of adjustment period:
1. Due to the retroactive adjustment of
“Accounting Standards for Business Enterprises”and related new regulations, theimpact on undistributed prots at the beginning of the period was RMB 0.
2. The impact of changes in accounting policies on undistributed prots at the beginning of the period was RMB 0.
3. The impact of correction of major accounting errors on undistributed prots at the beginning of the period was RMB 0.
4. The impact of change of consolidation scope caused by the common control on undistributed prots at the beginning
of the period was RMB 0.
5. The total impacts of other adjustment on undistributed prots at the beginning of the period were RMB 0.
61. Operating revenue and operating costs
(1). Operating revenue and operating costs
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current periodAmount incurred in the previous period
RevenueCostRevenueCost
Primary business32,742,292,22528,407,567,71430,025,614,82126,014,865,348Other business190,971,57772,818,080166,178,166130,566,638Total32,933,263,80228,480,385,79430,191,792,98726,145,431,986
(2). Breakdown of operating income and operating cost
√Applicable? Not Applicable
Unit: Yuan Currency: CNYClassication of Contract
XXX-DivisionTotalOperating revenueOperating costsOperating revenueOperating costs
Type of goods????Port machinery??21,236,864,18217,769,268,798Heavy equipment5,422,715,0545,139,018,033Steel structures and related revenue3,166,048,5202,883,527,923Engineering construction projects1,528,578,2181,551,493,106Shipping and lifting services1,209,116,050875,048,926Lease income296,335,872219,473,544Sales of materials and others??73,605,90642,555,464By region of operation????Chinese Mainland??18,521,970,12716,523,483,271Asia (excluding Chinese Mainland)6,029,644,6814,952,941,475North America2,386,479,1182,039,827,384Africa2,032,771,3141,515,235,643Europe1,096,740,5431,231,226,688South America1,183,625,912901,491,572Chinese Mainland (export sales)964,530,587746,929,906Oceania717,501,520569,249,855Market or customer type????Contract type????
ANNUAL REPORT2023Classication of Contract
XXX-DivisionTotalOperating revenueOperating costsOperating revenueOperating costsBy time of goods transfer ????
Transfer at a certain point??23,223,967,88719,854,414,170Transfer within a certain period??9,709,295,9158,625,971,624By contract term????By sales channel????Total??32,933,263,80228,480,385,794Other description:
?Applicable√ Not Applicable
(3). Performance obligations
?Applicable√ Not Applicable
(4). Apportionment to remaining performance obligations
?Applicable√ Not Applicable
(5). Major contract changes or major transaction price adjustments
?Applicable√ Not ApplicableOther description:
The revenue recognized in the current year and included in the book value of contract liabilities at the beginning of theyear is as follows:
20232022
Advances from customers for goods6,537,380,8345,392,655,435Settled amount with unnished construction406,509,673280,680,980Total6,943,890,5075,673,336,415The revenue recognized in the current year for performance obligations that have been fullled (or partially fullled) inthe previous period is as follows:
20232022
Steel structure and related income2,667,439,984807,002,969Engineering construction projects1,528,578,2181,613,996,721Total4,196,018,2022,420,999,690The information related to performance obligations of the Group is as follows:
Sales of port machinery, heavy equipment and steel structure productsFor the port machinery production contract that meets the performance obligations within a certain period of time, theGroup performs its performance obligations within the time of manufacturing and transferring the port machinery; forthe port machinery production contract that does not meet the performance obligations within a certain period of time,the Group performs its obligations when delivering port machinery to customers and obtaining pre-delivery certicate orother relevant delivery certicates. For the heavy equipment production contract that meets the performance obligationswithin a certain period of time, the Group performs its performance obligations within the time of manufacturing andtransferring the heavy equipment; for the heavy equipment production contract that does not meet the performanceobligations within a certain period of time, the Group performs its obligations when delivering heavy equipment tocustomers and obtaining the handover protocol or other relevant delivery certificate. For the steel structure productmanufacturing contract that meets the performance obligations within a certain period of time, the Group performsits performance obligations within the time of manufacturing and transferring the steel structure product; for the steelstructure product manufacturing contract that does not meet the performance obligation within a certain period oftime, the Group performs its performance obligations when the steel structure product is delivered and signed by theowner. The contract price is usually paid according to the payment schedule agreed in the contract. After the delivery of
Section X Financial Report
the goods, the customer usually retains a certain proportion of the quality guarantee deposit, which is usually paid afterthe expiration of the quality guarantee period. The Group provides guaranteed warranty for the above products.Building servicesThe Group performs its performance obligations within the time of providing services, and the contract price is usuallypaid within 30 days after the settlement of the project. The customer usually retains a certain proportion of the qualityguarantee deposit, which is usually paid after the expiration of the quality guarantee period.Shipping servicesThe Group performs its performance obligations within the time of providing transportation services. The contract priceis usually paid within the period from 3 days before unloading to 30 days after unloading.
62. Taxes and surcharges
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Consumption taxSales taxUrban maintenance and construction tax104,097,50545,473,679Educational surtax76,075,16134,681,141Resource taxHousing property tax58,774,78046,741,623Land use tax22,714,66718,768,826Vehicle and vessel use taxStamp duty27,381,42826,389,258Others2,256,0842,704,930Total291,299,625174,759,457Other description: None
63. Selling and distribution expenses
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous periodEmployee compensation127,513,128145,325,870Warehousing and transportation expenses20,416,8582,461,363Travel expenses15,943,4039,827,870Entertainment expenses12,354,6944,040,238Regional operating expenses11,073,494Advertising and publicity costs11,030,7293,795,628Bidding and tendering expenses3,431,5352,796,037Oce expenses2,127,5772,159,960Sales and service fees1,148,0661,811,427Other 6,321,7094,587,271Total211,361,193176,805,664Other description: None
64. General and administrative expenses
√Applicable? Not Applicable
ANNUAL REPORT2023Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Employee compensation436,308,835422,344,628Amortization of intangible assets95,551,70790,354,954Oce expenses59,250,40758,616,600Depreciation of xed assets41,878,89362,513,546Informatization expenses39,164,78316,683,023Travel expenses29,759,12620,418,253Expenses from employment of intermediaries28,892,00942,781,830Consulting fees24,404,4069,903,413Management and security fees23,872,30323,089,221Management and cleaning fees16,946,18715,760,356Entertainment expenses10,800,1585,927,002Maintenance cost9,487,5673,518,407Insurance expenses7,466,9366,053,437Others25,400,11957,725,498Total849,183,436835,690,168Other description: None
65. Research and development expenses
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Employee compensation616,931,085560,361,835Materials expenses394,464,827300,416,273Processing expenses172,861,680144,441,413Depreciation expenses94,644,50385,911,765Product design expenses2,497,150126,214Others30,157,42027,079,591Total1,311,556,6651,118,337,091Other description: None
66. Financial expenses
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemAmount incurred in the current periodAmount incurred in the previous periodInterest expenses996,663,3531,083,262,216Less: Capitalized amount of interest30,797,54144,941,151Less: interest income429,793,598413,595,714Exchange losses/gains-44,672,15098,700,929Others54,650,38651,653,597Total546,050,450775,079,877
Other description:
The capitalized amounts of borrowing costs have been included in the construction in progress and intangible assets.
67. Other income
√Applicable? Not Applicable
Section X Financial ReportUnit: Yuan Currency: CNYClassication by natureAmount incurred in the current periodAmount incurred in the previous periodFiscal appropriation69,206,57475,734,113Technological subsidy26,342,36323,979,691Fiscal appropriation2,740,4003,300,400Land compensation1,000,0001,000,000Total99,289,337104,014,204
Other description:
None
68. Investment income
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodIncome from long-term equity investment calculated under the equity method78,028,096170,402,945Investment income from disposal of long-term equity investment-95,166Investment income from held-for-trading nancial assets during the holding period42,373,17160,831,663Dividend income from other equity instrument investment during holding335,790335,790Interest income from debt investment during holdingInterest income from other debt investment during holdingInvestment income from disposal of held-for-trading nancial assets79,113,4555,843Investment income from disposal of other equity instrument investmentInvestment income from disposal of debt investmentInvestment income from disposal of other debt investmentIncome from debt restructuringLosses on derecognition of nancial assets measured at amortized cost-115,312,416-20,135,378Others-16,628,696-6,986,339Total67,909,400204,359,358Other description:
The Group derecognized some nancial assets measured at amortized cost this year, recognized a loss of RMB 115,312,416(2022: loss of RMB 20,135,378) and included it in investment income.
69. Net exposure hedging gain
?Applicable√ Not Applicable
70. Income from fair value change
√Applicable? Not Applicable
Unit: Yuan Currency: CNYSources of income from fair value change
Amount incurred in the current
period
Amount incurred in the previous
periodHeld-for-trading nancial assets-27,339,814-276,050,580Including: income from fair value change of derivative nancial instrumentsHeld-for-trading nancial liabilitiesInvestment property measured at fair valueInvestment in listed company stocks-27,339,814-276,050,580Total-27,339,814-276,050,580
ANNUAL REPORT2023
Other description: None
71. Credit impairment loss
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Loss on bad debts of notes receivableLoss on bad debts of accounts receivable255,353,083322,159,775Loss on bad debts of other receivables20,957,01223,996,659Loss on impairment of debt investmentLoss on impairment of other debt investmentLoss on bad debts of long-term receivablesImpairment loss related to nancial guaranteesLoss on impairment of contract assetsTotal276,310,095346,156,434Other description: None
72. Assets impairment losses
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
I. Impairment loss of contract assets135,250,9399,832,764II. Loss on price falling of inventory and impairment loss ofcontract performance costs
293,593,26182,677,874III. Impairment loss of long-term equity investmentIV. Impairment loss of investment propertyV. Impairment loss of xed assetsVI. Impairment loss of engineering materialsVII. Impairment loss of construction in progressVIII. Impairment loss of productive biological assetsIX. Impairment loss of oil and gas assetsX. Impairment loss of intangible assetsXI. Goodwill impairment lossXII. OthersTotal428,844,20092,510,638Other description: None
73. Income from disposal of assets
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemAmount incurred in the current periodAmount incurred in the previous periodIncome from disposal of xed assets79,038,66266,186,622Total79,038,66266,186,622Other description:
None
Section X Financial Report
74. Non-operating income
Non-operating income√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in theprevious period
Amount included in non-recurringprot or loss in current period
Total gains from disposal of non-current assetsIncluding: Gains from disposal of xed assets
Gains from disposal of intangible assetsGains from exchange of non-monetary assetsAccepting donationsGovernment grants irrelevant to daily activities8,191,4852,401,7438,191,485Revenue from insurance indemnity1,828,9866,501,3091,828,986Amercement gains14,192,3969,835,51714,192,396Others6,031,10213,401,0386,031,102Total30,243,96932,139,60730,243,969Other description:
?Applicable√ Not Applicable
75. Non-operating expenditure
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious period
Amount included in non-recurringprot or loss in current periodTotal loss on disposal of non-current assetsIncluding: Loss on disposal of xed assets
Loss on disposal of intangible assetsLoss on exchange of non-monetary assetsExternal donations845,060385,000845,060Overdue ne payment468,4301,551,733468,430Others942,739499,362942,739Total2,256,2292,436,0952,256,229Other description:
None
76. Income tax expenses
(1). Table of income tax expenses
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous periodCurrent income tax expenses132,228,250130,622,921Deferred income tax expenses6,384,790-72,950,481Total138,613,04057,672,440
(2). Accounting prot and income tax expenses adjustment process
√Applicable? Not Applicable
ANNUAL REPORT2023
Unit: Yuan Currency: CNYItemAmount incurred in the current periodTotal prots785,157,669The income tax expenses calculated based on statutory/applicable tax rates117,773,650Inuences caused by dierent tax rates adopted by subsidiaries41,354,129Inuences caused by adjustment on income tax of previous periods6,286,247Inuences on non-taxable incomeInuences caused by non-deductible cost, expenses and losses26,399,843Inuences caused by non-conrmation of deductible losses of deferred income tax assets-22,253,408Inuences caused by non-conrmation of deductible temporary dierences or deductible losses incurrent period
25,522,344Prot or loss attributable to joint ventures and associates-11,704,214Tax-free income-6,406,344Additional deduction of technological development expenses-38,359,207Income tax expenses138,613,040Other description:
?Applicable√ Not Applicable
77. Other comprehensive income
√Applicable? Not ApplicableSee Note VII (57) for details.
78. Cash ow statement items
(1). Cash related to operating activities
Other cash received related to operating activities√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Other cash received related to operating activitiesCustoms deposit recovered486,274,294155,522,957Cash received from government subsidies and rewards148,812,28270,312,363Employee loan recovered1,146,1621,559,111Cash received from the revenue from nes14,192,3969,835,517Others26,533,4416,773,148Total676,958,575244,003,096Description of other cash received related to operating activities:
NoneOther cash paid related to operating activities√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current
period
Amount incurred in the previous
period
Other cash paid related to operating activitiesCustoms deposit paid350,474,800294,392,928Expenditures on selling and distribution expenses, general and administrativeexpenses, and research and development expenses
266,807,164361,009,064
Section X Financial ReportItem
Amount incurred in the current
periodAmount incurred in the previous
periodFinancial expenses and handling charges52,173,27051,626,667Subsidy for research and development paid to cooperative units4,683,00020,301,000Others82,883,95769,972,683Total757,022,191797,302,342Description of other cash paid related to operating activities:
None
(2). Cash related to investment activities
Cash received related to important investment activities?Applicable√ Not ApplicableCash paid related to important investment activities√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current
period
Amount incurred in the previous
periodCash paid for purchase of fixed assets, constructions in progress andintangible assets
746,956,678488,778,059Total746,956,678488,778,059Explanation of cash paid related to important investment activitiesNoneOther cash received related to investing activities√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current
period
Amount incurred in the previous
periodInterest income114,994,970209,457,444Total114,994,970209,457,444Description of other cash received related to investing activities:
NoneOther cash paid related to investing activities?Applicable√ Not Applicable
(3). Cash relating to nancing activities
Other cash received relating to nancing activities√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Other cash received relating to nancing activitiesPayments received from asset-backed securities business1,015,336,873611,100,377Loans received from related parties114,035,638Leaseback payments received4,945,8204,696,898Restricted bank deposits recovered2,310,473Total1,134,318,331618,107,748
ANNUAL REPORT2023
Description of other cash received related to nancing activities: NoneOther cash paid related to nancing activities√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Other cash paid related to nancing activitiesRepayment of collections from asset-backed securitiesbusiness
1,366,650,466Third-party loan repaid153,990,35098,957,097Related-party loan repaid97,675,112223,206,280Repayment of principal of medium-term notes500,000,000Deposited restricted monetary funds4,973,788Others19,949,07111,207,706Total1,638,264,999838,344,871Description of other cash paid related to nancing activities: NoneChanges in various liabilities arising from nancing activities√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Item
December 31,2022
Increase in current periodDecrease in current period
December 31,
2023Cash changes
Non-cashchanges
Cash changes
Non-cashchangesLong-term loans (including long-termloans due within one year)
27,563,125,9997,251,082,15811,221,602,6937,795,19323,584,810,271Long-term payables - leaseback nancing(including long-term payables due withinone year - leaseback nancing)
1,658,661,4704,945,82036,846,587249,669,7581,450,784,119Lease liabilities (including lease liabilitiesdue within one year)
12,380,27567,267,35518,118,52061,529,110Other payables (asset-backed securitiesbusiness funds)
611,100,3761,015,336,8731,366,650,466259,786,783Other payables (minority shareholders’
loans)
114,035,638114,035,638Short-term borrowings1,793,682,95219,415,217,4102,856,98716,426,290,3163,826,2544,781,640,779Total31,638,951,07227,800,617,899106,970,92929,282,331,75311,621,44730,252,586,700
(4). Explanation of cash ows presented on a net basis
?Applicable√ Not Applicable
(5). Major activities and nancial impacts that do not involve current cash receipts and payments but aect the Company
’snancial position or may aect the Company’s cash ows in the future√Applicable? Not ApplicableIn 2023, the Group’s endorsement transfer of bank acceptance bill received from sales of goods and rendering of servicesfor the purchase of goods and the receipt of services was RMB 2,008,953,329 (2022: RMB 1,312,121,165).
79. Further information on cash ow statement
(1). Further information on cash ow statement
√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNYFurther informationCurrent amountPrevious amount
1. Reconciliation from net prots to cash ows from operating activities:
Net prot646,544,629597,562,348Plus: provision for impairment of assets428,844,20092,510,638Credit impairment loss276,310,095346,156,434Depreciation of xed assets, oil and gas assets and productive biological assets1,253,746,1501,173,015,684Amortization of right-of-use assets16,568,62611,582,968Amortization of intangible assets98,317,21493,385,465Amortization of long-term deferred expensesNet proceeds from disposal of xed assets and intangible assets-79,038,662-66,186,622Loss on retirement of xed assets (gains expressed with“-”)Loss on change in fair value27,339,814276,050,580Financial expenses541,719,273488,026,167Investment losses (gains expressed with“-”)-199,850,512-231,481,075Increase of deferred income tax assets-25,757,445-94,235,777Increase of deferred tax liabilities32,142,23521,285,296Increase of inventory-3,137,886,056-1,108,554,285(Increase)/decrease in operational receivable items-1,126,815,29661,780,602Increase of operational payables5,763,954,7052,585,383,305Decrease/(increase) in construction contract amount659,138,239-1,678,870,361Increase in special reserve8,907,2371,152,656OthersNet cash ow from operating activities5,184,184,4462,568,564,023
2. Signicant investment and nancing activities not involving cash deposit and withdrawal:
Conversion of debt into capitalConvertible bonds due within one yearFixed assets under nancing lease
3. Net changes in cash and cash equivalents:
Ending balance of cash5,032,169,9052,375,101,437Less: Beginning balance of cash2,375,101,4374,449,837,877Plus: Ending balance of cash equivalentsLess: Beginning balance of cash equivalentsNet increase of cash and cash equivalents2,657,068,468-2,074,736,440
(2). Net cash paid to acquire subsidiaries in current period
?Applicable√ Not Applicable
(3). Net cash received from disposal of subsidiaries in current period
?Applicable√ Not Applicable
(4). Composition of cash and cash equivalents
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemDecember 31, 2023December 31, 2022
I. Cash5,032,169,9052,375,101,437Including: cash on hand494,8091,027,476????Bank deposit readily available for payment5,031,675,0962,374,073,961????Other monetary capital readily available for payment????Deposits with central bank available for payment????Deposits in other banks
ANNUAL REPORT2023ItemDecember 31, 2023December 31, 2022????Borrowings from other banksII. Cash equivalentsIncluding: bond investment due within three monthsIII. Balance of cash and cash equivalents at the end of periodIncluding: restricted cash and cash equivalents of parent company or subsidiaries withinthe Group
5,032,169,9052,375,101,437
(5). Situations where the scope of use is limited but still presented as cash and cash equivalents
?Applicable√ Not Applicable
(6). Monetary fund not classied into cash and cash equivalents
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022ReasonJudicial frozen funds30,861,0003,824,971Capital frozenGuarantee and L/C deposit30,848,39116,272,632MarginFunds in overseas regulatory accounts11,199,1401,848,673Restricted useTotal72,908,53121,946,276/Other description:
?Applicable√ Not Applicable
80. Notes to items in statement of owner's equity
State the name of "other" items and the amount of adjustment to the ending balance of previous year:
?Applicable√ Not Applicable
81. Foreign currency monetary items
(1). Foreign currency monetary items
√Applicable? Not Applicable
Unit: Yuan
ItemEnding foreign currency balanceConversion exchange rateEnding balance, converted into RMBMonetary funds--Including: USD314,777,0617.08272,229,471,490EUR52,818,7947.8592415,113,466INR377,614,2280.085532,286,016RUB290,679,4890.080323,341,563ZAR48,579,3840.381918,552,467AUD2,957,3394.848414,338,362MYR3,564,5581.54155,494,766AED2,637,2811.93265,096,809GBP479,8569.04114,338,426KRW666,837,6580.00553,667,607SGD216,4485.37721,163,884HKD939,6210.9062851,485SAR267,2341.8926505,767BRL268,8921.4658394,142LKR2,839,0380.022062,459JPY903,6790.050245,365KES 905,8750.045341,036
Section X Financial Report
ItemEnding foreign currency balanceConversion exchange rateEnding balance, converted into RMBGHS 43,5170.596925,975CAD2695.36731,444NZD54.499122Accounts receivable--Including: USD730,962,6397.08275,177,189,083EUR105,110,7167.8592826,086,139RUB2,072,438,9610.0803166,416,849AED50,160,2851.932696,939,767SGD17,281,8025.377292,927,706KRW7,081,157,6030.005538,946,367LKR1,402,601,0350.022030,857,223GBP3,191,6669.041128,856,171CAD4,842,5375.367325,991,349INR299,935,2740.085525,644,466QAR11,629,7841.954522,730,413ZAR54,075,1140.381920,651,286AUD3,636,5424.848417,631,410HKD14,634,6380.906213,261,909SAR6,132,4621.892611,606,298MYR3,324,2651.54155,124,354BRL74,9841.4658109,912Other receivables-Including: USD13,753,2347.082797,410,030RUB124,119,9430.08039,966,831EUR930,5947.85927,313,724ZAR9,496,5940.38193,626,749KRW348,589,4130.00551,917,242LKR62,527,3570.02201,375,602AUD283,1154.84841,372,655SGD182,9205.3772983,597INR9,868,2920.0855843,739HKD645,7890.9062585,214BRL378,3901.4658554,644OMR4,77218.420087,900Accounts payableUSD123,646,8747.0827875,753,714EUR55,715,8237.8592437,881,796SGD3,527,2205.377218,966,567GBP1,883,3649.041117,027,682KRW2,576,247,4780.005514,169,361JPY233,578,9740.050211,725,664HKD8,494,5220.90627,697,736RUB89,571,7310.08037,192,610INR73,177,8090.08556,256,703LKR276,092,6650.02206,074,039ZAR9,265,8630.38193,538,633AUD244,8974.84841,187,359BRL792,9941.46581,162,371CAD209,2185.36731,122,936Other payablesUSD22,114,6457.0827156,631,396EUR6,234,2877.859248,996,508KRW889,504,3780.00554,892,274
ANNUAL REPORT2023ItemEnding foreign currency balanceConversion exchange rateEnding balance, converted into RMBSGD442,5015.37722,379,416LKR104,196,3960.02202,292,321GBP96,8259.0411875,405ZAR2,230,6070.3819851,869INR3,071,6870.0855262,629HKD15,2600.906213,829Short-term borrowingsEUR7.8592Long-term payables due within one yearUSD21,057,8887.0827149,146,703Long-term payablesUSD184,548,7937.08271,307,103,736Other description:
None
(2). Description of overseas business entities, including the disclosure of main overseas business locations, recording
currency and selection basis for important overseas business entities, as well as the reasons for changes in recordingcurrency?Applicable√ Not Applicable
82. Lease
(1). As a lessee
√Applicable? Not Applicable
20232022Interest expense of lease liabilities1,313,980615,840Short-term lease expenses with simplied treatment included inthe current prot or loss
217,888,742104,487,307Total cash outows related to leases259,695,514122,403,881Cash outow from leaseback249,669,758242,328,806The leased assets leased by the Group include buildings and constructions, machinery and equipment, transportationequipment and other equipment used in the course of operations, and the lease term is usually 1-3 years. The leasecontract usually stipulates that the Group cannot sublet the leased assets. A few lease contracts include the option ofrenewal.LeasebackThe Group usually enters into leaseback transactions for the purchase price of large ships or equipment, where thetransfer of the assets is not a sale. The Group continues to recognize the transferred assets together with a financialliability equal to the transfer income. The Group takes such leaseback transactions as mortgage loans for accountingtreatment. The Group makes annual leaseback nancing payments to the nance leasing company in accordance withthe terms of the contract.Other lease informationRight-of-use assets are detailed in Note VII (25). The simplied treatment of short-term lease and low-value assets lease isdetailed in Note V (34). The lease liabilities are detailed in Note VII (47).Variable lease payments not included in the measurement of lease liabilities?Applicable√ Not ApplicableSimplied short-term leases or lease expenses of low-value assets?Applicable√ Not Applicable
Section X Financial Report
Leaseback transactions and judgment basis?Applicable√ Not ApplicableTotal cash outows related to leases was 259,695,514 (Unit: Yuan Currency: CNY)
(2). As a lessor
Operating lease as the lessor?Applicable√ Not ApplicableFinancing lease as the lessor?Applicable√ Not ApplicableReconciliation of undiscounted lease receipts and net lease investment?Applicable√ Not ApplicableUndiscounted lease receipts for the next ve years?Applicable√ Not ApplicableOther description:
Operating leaseThe prot or loss related to operating leases is presented as follows:
20232022Lease income296,335,872225,960,519
According to the lease agreement signed with the lessee, the undiscounted minimum lease receipts are as follows:
20232022Within 1 year (including 1 year)291,022,650239,242,9411 to 2 years (including 2 years)222,198,493132,035,5132-3 years (including 3 years)113,076,26842,528,1013 to 4 years (including 4 years)105,432,42219,751,0714 to 5 years (including 5 years)55,144,11785,516,755Over 5 years54,066,921828,273Total840,940,871519,902,654
(3). Recognize the prot or loss of nancing lease sales as a manufacturer or distributor
?Applicable√ Not ApplicableOther description:
None
83. Others
?Applicable√ Not ApplicableVIII. R&D expenses
(1). Presented by nature of expense
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemAmount incurred in the current periodAmount incurred in the previous period
Employee compensation616,931,085560,361,835Depreciation and amortization94,644,50385,911,765
ANNUAL REPORT2023ItemAmount incurred in the current periodAmount incurred in the previous periodMaterials expenses394,464,827300,416,273Processing expenses172,861,680144,441,413Product design expenses2,497,150126,214Others30,157,42027,079,591Including: Expensed R&D expenditure1,311,556,6651,118,337,091
Capitalized R&D expenditureOther description: None
(2). Development expenditures of R&D projects that meet capitalization conditions
?Applicable√ Not ApplicableSignicant capitalized R&D projects?Applicable√ Not ApplicableProvision for development expenditure impairment?Applicable√ Not ApplicableOther description: None
(3). Signicant outsourced research projects
?Applicable√ Not ApplicableIX. Changes in consolidation scope
1. Business combination not under common control
?Applicable√ Not Applicable
2. Business combination under common control
?Applicable√ Not Applicable
3. Counter purchase
?Applicable√ Not Applicable
4. Disposal of subsidiaries
Whether there are transactions or events leading to loss of control over subsidiaries in the current period?Applicable√ Not ApplicableOther description:
?Applicable√ Not ApplicableWhether the control of subsidiary’s investment is lost in the current period in step-to-step disposal through multipletransactions?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
Section X Financial Report
5. Changes in consolidation scope due to other reasons
Description of the changes (such as new subsidiary, liquidation of subsidiary) in consolidation scope due to other reasonsand relevant information:
?Applicable√ Not Applicable
6. Others
?Applicable√ Not Applicable
X. Interests in other entities
1. Interests in subsidiaries
(1). Subsidiaries of the Group
√Applicable? Not Applicable
Unit: Yuan Currency: CNYName of subsidiary
Principal placeof business
Registration
place
Business nature
Shareholdingratio (%)
Way of acquisitionName ofsubsidiaryDirectIndirectNantong Zhenhua HeavyEquipment ManufacturingCo., Ltd.
Nantong City,Jiangsu Province
Nantong City,Jiangsu Province
Machinemanufacturing
100.00%0.00%
Establishment byinvestingZPMC TransmissionMachinery (Nantong) Co.,Ltd.
Jiangsu ProvinceJiangsu Province
Machinemanufacturing
50.75%0.00%
Establishment byinvestingShanghai Zhenhua HeavyIndustries Port MachineryGeneral Equipment Co., Ltd.
Chongming,Shanghai
Chongming,Shanghai
Machinemanufacturing
100.00%0.00%
Businesscombination undercommon controlCCCC Liyang UrbanInvestment and ConstructionCo., Ltd. (Remark 1)
Liyang City,Jiangsu Province
Liyang City, JiangsuProvince
Engineeringconstruction
48.00% 0.00%
Establishment byinvestingThe shareholding ratio in subsidiaries is dierent from the proportion of voting rights:
NoneThe basis for holding half or less of the voting rights but still controlling the invested entity, and the basis for holdingmore than half of the voting rights but not controlling the invested entity:
NoneThe basis for control of the important structured entities included in the consolidation scope:
NoneBasis for determining whether the Company is an agent or a principal:
NoneOther description:
Remark 1: By signing the agreement for concerted action with CCCC Shanghai Dredging Co., Ltd. and CCCC East ChinaInvestment Co., Ltd., the Group had obtained 76% voting power in the board of shareholder and 71% voting power in theboard of directors of this company. In accordance with the regulations of the articles of association of such company, theGroup had obtained the control rights thereof, thus, such company was included in the Groups’consolidation scope. Thearticles of association of the Company stipulate that Jiangsu Sukong Urban Investment and Construction Co., Ltd., one ofsuch company’s shareholders, does not participate in dividends, and its shareholding ratio is 20%.
ANNUAL REPORT2023
(2). Major non-wholly-owned subsidiaries
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Name of subsidiary
Shareholding ratio ofminority shareholder
Prot or loss attributable to the minorityshareholder in current period
Dividends declared to minorityshareholders in current period
Balance of minority shareholders'equity at the end of the period
ZPMC Transmission Machinery (Nantong) Co., Ltd.49.25%66,922,016-58,000,000838,161,447CCCC Zhenjiang Investment Construction ManagementDevelopment Co., Ltd.
30.00%5,349,505-18,521,644195,038,068
Greenland Heavylift (HongKong) Limited50.00%40,624,810-16,619,369453,735,711CCCC Investment & Development Qidong Co., Ltd.50.42%17,715,130396,781,808CCCC Liyang Urban Investment and Construction Co., Ltd.52.00%23,114,975358,521,665CCCC Rudong Construction Development Co., Ltd.33.50%8,548,685197,060,790Description of the dierence between the shareholding ratio of minority shareholders and the proportion of voting right ratio in subsidiaries:
?Applicable√ Not Applicable
Other description:
?Applicable√ Not Applicable
(3). Main nancial information of major non-wholly-owned subsidiaries
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Name of subsidiary
December 31, 2023December 31, 2022
CurrentassetsNon-currentassetsTotal assets
CurrentliabilitiesNon-currentliabilities
TotalliabilitiesCurrentassetsNon-currentassetsTotal assets
CurrentliabilitiesNon-currentliabilities
Totalliabilities
CCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
662,347,128662,347,128-12,220,234-12,220,234565,932,743139,615,446705,548,189-11,514,162--11,514,162
Greenland Heavylift (Hong Kong)Limited
201,642,7092,447,207,8032,648,850,512-444,563,092-1,307,103,738-1,751,666,830252,929,8162,463,909,7212,716,839,537-455,071,592-1,420,855,618-1,875,927,210
ZPMC Transmission Machinery(Nantong) Co., Ltd.
2,322,547,899361,342,1452,683,890,044-970,014,028-11,600,916-981,614,9441,839,605,961366,807,6222,206,413,583-522,208,391-752,137-522,960,528
CCCC Investment &Development Qidong Co., Ltd.
414,930,1801,203,059,2201,617,989,400-271,280,573-560,061,964-831,342,537265,227,6371,364,010,2101,629,237,847-97,338,764-780,324,738-877,663,502
CCCC Liyang Urban Investmentand Construction Co., Ltd.
268,591,3221,154,852,3901,423,443,712-437,108,646-120,030,905-557,139,551741,895,0211,040,510,6951,782,405,716-796,792,640-177,096,352-973,888,992
CCCC Rudong ConstructionDevelopment Co., Ltd.
138,704,9751,536,377,6931,675,082,668-548,572,968-482,469,030-1,031,041,998132,878,8191,453,726,4561,586,605,275-427,934,325-540,148,743-968,083,068
Section X Financial Report
Name of subsidiary
Amount incurred in the current periodAmount incurred in the previous period
Operating
revenue
Net prot
Total
comprehensiveincome
Cash ows
from operatingactivitiesOperatingrevenue
Net prot
Totalcomprehensive
income
Cash ows
from operatingactivities
CCCC Zhenjiang Investment ConstructionManagement Development Co., Ltd.
17,831,68017,831,68061,523,681963,151963,151-1,227,820
Greenland Heavylift (Hong Kong) Limited511,168,76348,199,34072,890,721287,224,364734,051,637230,854,796257,705,416526,244,021ZPMC Transmission Machinery (Nantong)Co., Ltd.
1,328,785,966135,889,441135,889,441111,733,9561,284,808,112120,684,118120,684,118138,491,055
CCCC Investment & Development QidongCo., Ltd.
121,670,86235,072,51935,072,519154,742,174153,052,52631,237,56031,237,560-94,547,059
CCCC Liyang Urban Investment andConstruction Co., Ltd.
66,685,28857,787,43657,787,436317,797,13386,127,30351,019,29151,019,291239,771,111
CCCC Rudong Construction DevelopmentCo., Ltd.
220,611,55625,678,95925,678,959-3,816,123394,663,91125,386,59025,386,590-287,574,587
Other description:
None
(4). Major restrictions on the use of assets of enterprise group and the repayment of debts of enterprise group
?Applicable√ Not Applicable
(5). Financial support or other supports provided to structured entities included in the scope of consolidated nancial statements
?Applicable√ Not Applicable
Other description:
?Applicable√ Not Applicable
2. Transactions in which the owner
’s equity share of a subsidiary changes and the subsidiary is still under control
√Applicable? Not Applicable
(1). Explanation of changes in the share of the owner's equity of subsidiary
√Applicable? Not Applicable
In December 2023, ZPMC Machinery Equipment Services Co., Ltd., a subsidiary of the Company, introduced a third party to increase its capital by RMB 131,434,294.After the capital increase, such third party held 30% of ZPMC Machinery Equipment Services Co., Ltd. The Company has not lost the control over ZPMC MachineryEquipment Services Co., Ltd. The transaction resulted in an increase of RMB 71,797,896 in minority interests and RMB 59,636,398 in capital reserves in the consolidatednancial statements.
(2). Eect of the transaction on minority interests and attributable to owners' equity of the parent company
?Applicable√ Not Applicable
ANNUAL REPORT2023
3. Equity in joint ventures and associates
√Applicable? Not Applicable
(1). Major joint ventures or associates
√Applicable? Not ApplicableName of joint venture or associate
Principal placeof business
Registrationplace
Business nature
Shareholding ratio (%)AccountingtreatmentDirectIndirect
Joint venturesJiangsu Longyuan Zhenhua MarineEngineering Co., Ltd
Jiangsu
Nantong,Jiangsu
Marine engineeringconstruction
50.00%-Equity method
ZPMC Mediterranean Liman MakinalariTicaret Anonim Sirketi
Istanbul, Turkey
Istanbul,Turkey
Technical service for portequipment
50.00%-Equity method
Zhenhua Marine Energy (HK) Co., Ltd.Hong KongHong KongShipping-51.00%Equity methodCranetech Global Sdn.Bhd.MalaysiaMalaysia
Technical service for portequipment
-49.99%Equity methodZOSG-OTL Marine Contractor Limited(formerly known as: ZPMC-OTL MarineContractor Limited)
Hong KongHong KongShipping-50.00%Equity methodAssociatesCCCC Marine Engineering & TechnologyResearch Center Co., Ltd.
Shanghai
Pudong NewArea, Shanghai
Marine technologydevelopment and
consulting
25.00%-Equity method
CCCC Estate Yixing Co., Ltd.JiangsuWuxi, JiangsuReal estate development20.00%-Equity methodZPMC Changzhou Coatings Co., Ltd.Jiangsu
Changzhou,
Jiangsu
Paint manufacture20.00%-Equity methodCCCC Financial Leasing Co., Ltd.Shanghai
Pudong NewArea, Shanghai
Finance lease5.82%-Equity methodCCCC Yancheng Construction DevelopmentCo., Ltd.
Jiangsu
Yancheng,
Jiangsu
Engineering project
construction
25.00%-Equity method
Suzhou Chuanglian Electric Drive Co., Ltd.Jiangsu
Suzhou,Jiangsu
Electric equipment
manufacturing
20.00%-Equity method
China Communications Construction USAInc.
USAUSA
Port, channel, highwayand bridge construction
24.00%-Equity method
CCCC South American Regional CompanySARL
USAUSA
Port, channel, highwayand bridge construction
17.00%-Equity method
ZPMC Southeast Asia Pte. Ltd.SingaporeSingaporeTrade sales-40.00%Equity methodShanghai Ocean Engineering EquipmentManufacturing Innovation Center Co., Ltd.
ShanghaiChina
Development of oceanengineering technology
8.97%-Equity method
Shanghai Xingyi Construction TechnologyCo., Ltd.
ShanghaiShanghaiBuilding engineering-30.00%Equity methodCCCC Xiongan Urban ConstructionDevelopment Co., Ltd.
Hebei
Xiongan,
Hebei
Engineering project
construction
15.00%-Equity method
Description of the dierence between shareholding ratio and proportion of voting rights in joint venture or associates:
NoneBasis for holding less than 20% of voting rights but having signicant inuence, or holding 20% or more of voting rightsbut not having signicant inuence:
None
(2). Main nancial information of major joint ventures:
?Applicable√ Not Applicable
Section X Financial Report
(3). Main nancial information of major associates:
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023/Amount incurred
in the current period
December 31, 2022/Amount incurred in
the previous periodCCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
Current assets29,354,696,29924,850,249,868Non-current assets29,259,294,67929,221,247,214Total assets58,613,990,97854,071,497,082Current liabilities-26,934,433,997-20,646,954,425Non-current liabilities-16,966,741,711-21,547,988,147Total liabilities-43,901,175,708-42,194,942,572Minority equity3,326,313,2713,386,004,140Other equity instrument - Perpetual bond1,000,000,000998,000,000Adjustment: Subscribed capital contributions not yet paid byother shareholders
301,476,593Shareholders’ equity attributable the parent company10,386,501,9997,492,550,370Share of net assets held based on shareholding ratio622,040,353674,329,533Adjustments-- Goodwill-- Unrealized prots of internal transactions-- OthersBook value of equity investment in associatesFair value of equity investment in associates with public oer622,040,353674,329,533Operating revenue3,988,743,3273,877,175,203Financial expenses-interest income23,247,31614,910,307Financial expenses - interest expenses10,869,8732,936,399Income tax expenses410,890,621342,767,440Net prot1,209,298,3011,057,340,236Net prot from discontinuing operationNet of tax of other comprehensive income-6,312,6246,950,951Other comprehensive incomeTotal comprehensive income1,202,985,6771,064,291,187Total comprehensive income attributable to the parent company893,298,879802,140,210Dividends distributed1,159,673,968-Dividends received from associates this yearOther descriptionNone
(4). Summary of nancial information of insignicant joint ventures and associates
√Applicable? Not Applicable
Unit: Yuan Currency: CNYDecember 31, 2023/Amountincurred in the current period
December 31, 2022/Amountincurred in the previous periodJoint ventures:
Total book value of investment367,506,947365,964,953Total number of following items by shareholding ratio-- Net prot1,541,99476,902,400-- Other comprehensive income
ANNUAL REPORT2023
December 31, 2023/Amountincurred in the current period
December 31, 2022/Amountincurred in the previous period-- Total comprehensive income1,541,99476,902,400Associates:
Total book value of investment966,710,322962,585,436Total number of following items by shareholding ratio-- Net prot4,026,42228,454,995-- Other comprehensive income98,46120,118,310-- Total comprehensive income4,124,88348,573,305Other descriptionNone
(5). Description of the signicant restrictions on the ability of joint ventures or associates to transfer funds to the Company
?Applicable√ Not Applicable
(6). Excess loss of joint ventures or associates
?Applicable√ Not Applicable
(7). Unrecognized commitments related to joint venture investment
?Applicable√ Not Applicable
(8). Contingent liabilities related to investment in joint ventures or associates
?Applicable√ Not Applicable
4. Signicant joint operation
?Applicable√ Not Applicable
5. Equity in structured entities not included in the scope of consolidated nancial statements
Description of structured entities not included in the scope of consolidated nancial statements:
?Applicable√ Not Applicable
6. Others
?Applicable√ Not ApplicableXI. Government subsidie
1. Governmental subsidy not recognized by amount receivable by the end of reporting period
?Applicable√ Not ApplicableReasons for failure to receive the estimated amount of governmental subsidy at the estimated time?Applicable√ Not Applicable
2. Liabilities revolving governmental subsidies
√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Item
December 31,
2022
New subsidy
amount incurrent period
Amountincluded innon-operating
income incurrent period
Amountincluded inother income incurrent period
Other changes
December 31,2023Assets related /income relatedDeferred income298,502,17965,409,61623,091,0144,683,000336,137,781Income relatedTotal/
3. Government subsidy recognized in current losses and gains
√Applicable? Not Applicable
Unit: Yuan Currency: CNYTypeAmount incurred in the current periodAmount incurred in the previous period
Income related107,480,822106,415,947Other description:
Among the above government subsidies, some projects are government subsidies related to assets, and the rest arerelated to income.Land compensation refers to the land compensation acquired by a subsidiary of the Company, which shall be amortizedover the 50 years’ land use term.XII. Risks related to nancial instruments
1. Financial instrument risks
√Applicable? Not ApplicableClassications of Financial instrumentThe book values of various nancial instruments on the balance sheet date:
2023Financial assets
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured atfair value through the other
comprehensive income
TotalStandardDesignatedStandardDesignated
Monetary funds-5,105,078,436--5,105,078,436Held-for-trading nancial assets720,594,675----720,594,675Notes receivable--14,122,031--14,122,031Receivables nancing---965,569,122-965,569,122Accounts receivable--7,266,298,102--7,266,298,102Other receivables--1,245,727,441--1,245,727,441Non-current assets due within one year--1,341,408,631--1,341,408,631Investment in other equity instruments----104,859,374104,859,374Long-term receivables--1,457,182,459--1,457,182,459Total720,594,675-16,429,817,100965,569,122104,859,37418,220,840,271
ANNUAL REPORT2023
Financial liabilities
Financial liabilities measured at fair value
through the current prot or loss
Financial liabilities measured at
amortized cost
TotalStandardDesignatedShort-term borrowings--4,781,640,7794,781,640,779Notes payable--5,533,470,5825,533,470,582Accounts payable--8,616,059,1388,616,059,138Other payables--1,006,412,8201,006,412,820Non-current liabilities due within one year--8,620,719,4638,620,719,463Long-term borrowings--15,105,224,07915,105,224,079Long-term payables--1,744,502,9831,744,502,983Total--45,408,029,84445,408,029,8442022Financial assets
Financial assets measured at fairvalue through the current prot or
loss
Measured atamortized cost
Financial assets measured atfair value through the other
comprehensive income
TotalStandardDesignatedStandardDesignatedMonetary funds--2,397,047,713--2,397,047,713Held-for-trading nancial assets877,483,342----877,483,342Notes receivable--56,114,657--56,114,657Receivables nancing---439,912,428-439,912,428Accounts receivable--7,193,649,855--7,193,649,855Other receivables--995,545,297--995,545,297Non-current assets due withinone year
--900,213,411--900,213,411Investment in other equityinstruments
----73,475,61973,475,619Long-term receivables--2,402,265,565--2,402,265,565Total877,483,342-13,944,836,498439,912,42873,475,61915,335,707,887Financial liabilities
Financial liabilities measured at fair valuethrough the current prot or loss
Financial liabilities measured at
amortized cost
TotalStandardDesignated
Short-term borrowings--1,793,682,9521,793,682,952Notes payable--5,401,258,8975,401,258,897Accounts payable--7,255,123,3347,255,123,334Other payables--1,299,724,8751,299,724,875Non-current liabilities due within one year--6,956,741,6506,956,741,650Long-term borrowings--21,019,572,64621,019,572,646Long-term payables--1,931,340,7341,931,340,734Total--45,657,445,08845,657,445,088
Financial instrument risksVarious nancial instrument risks the Group faces during the routine activities mainly include the credit risk, liquidity riskand market risk.The Group’s overall risk management plan is targeted at the unpredictability of nancial market, trying to minimize thepotential adverse inuence on the Group’s nancial results.Credit risk
Section X Financial ReportThe Group only trade with the authorized third parties and related parties in good standing. Credit risks are managed ina centralized manner by customer/counterpart, geographic region and industry. As the Group’s customers of accountsreceivable, contract assets and long-term receivables are widely dispersed across sectors and industries, there is nosignicant credit risk concentration within the Group. The Group holds collateral or other credit enhancements for thebalance of some accounts receivable, other receivables and long-term receivables.As the counterparts of monetary funds, receivables financing and derivative financial instruments are banks in goodstanding and having relatively higher credit rating, these nancial instruments have low credit risk.Other nancial assets of the Group include commercial acceptance bill, accounts receivable, other receivables and long-term receivables, the credit risks of these nancial assets and contract assets are from the counterpart’s default, and themaximum exposure is equal to the book amount of these instruments.The Group has set relevant policies to control the credit risk exposure. The Group, based on the customers' financialpositions, the possibility of obtaining guarantees from the third party, credit records and other factors such as the currentmarket conditions, evaluates the credit qualications of customers and set the credit period accordingly. The Group willmonitor customers’credit records periodically; as for the customers with bad credit records, the Group will take measures,such as requesting a payment in writing, shortening the credit period or canceling the credit term, to ensure that theGroup's overall credit risks are within the controllable scope.Judgment criteria for signicant increase in credit riskOn each balance sheet date, the Group will evaluate the credit risks of relevant nancial instruments to conrm whetherthey have had signicant increase or not after the initial recognition. The main criteria for the Group to judge a signicantincrease in credit risk are signicant changes in one or more of the following indicators: Signicant adverse changes in thedebtor’s operating environment, internal and external credit ratings, actual or expected operating results, etc.Denition of assets with credit impairmentThe main criteria for the Group to judge that credit impairment has occurred is that in certain circumstances, if internalor external information shows that the contract amount may not be fully recovered before considering any creditenhancement held, the Group will also regard it as credit impairment.The credit impairment of nancial assets may be caused by several events, not just one event which can be individuallyidentied.Parameters for the measurement of expected credit lossBased on the information whether the credit risk has had signicant increase or there is credit impairment, the Groupmakes the provision for impairment of expected credit losses of various assets for 12 months or the entire duration.Key parameters for the measurements of expected credit loss include the probability of default, loss given defaultand exposure at default. Considering the quantitative analysis on historical statistical data (including the rating of thecounterpart, way of guarantee and category of collateral) and prospective information, the Group builds models forprobability of default, loss given default and exposure at default.Relevant denitions:
(1) The probability of default refers to the possibility that the debtor will not be able to fulll its payment obligation in the
next 12 months or the whole remaining duration. The Group’s probability of default is adjusted based on the credit lossmodel, adding the prospective information to reect the debtor's probability of default in the current macroeconomicenvironment;
(2) The loss given default refers to the expectation made by the Group regarding the degree of loss on default risk
exposure. As the type of counterpart, way of recourse and priority as well as collateral may be dierent, the loss givendefault may also be dierent. The loss given default refers to the percentage of the risk exposure loss at default, calculatedbased on the term over the next 12 months or the entire duration;
(3) The exposure at default refers to the amount paid by the Group at default over the next 12 months or the entire
remaining duration.
ANNUAL REPORT2023
The prospective information is involved in the evaluation on significant change in credit risk and the calculation ofexpected credit loss. Through the historical data analysis, the Group identies the key economic indicators aecting thecredit risks in various types of business and the expected credit loss.The impact of these economic indicators on the probability of default and the loss given default is dierent for dierenttype of business. In such course, the Group makes the reference to the authoritative predictive values, expect theseeconomic indicators based on results of those values, and determine the impact of these economic indicators on theprobability of default and the loss given default.The maximum risk exposure and the year-end classication of credit risk degrees regarding the Group’s nancial assetsand contract assets are as follows:
2023
Expected credit loss over
the next 12 months
Expected credit loss in the entire lifecycle
TotalStage IStage IIStage IIISimple method
Monetary funds5,105,078,436---5,105,078,436Held-for-trading nancial assets720,594,675---720,594,675Notes receivable---14,122,03114,122,031Accounts receivable---7,266,298,1027,266,298,102Contract assets---2,779,633,1342,779,633,134Receivables nancing965,569,122---965,569,122Other receivables721,381,756293,580,976230,764,709-1,245,727,441Non-current assets due within one year1,341,408,631---1,341,408,631Other non-current assets---4,924,571,6214,924,571,621Long-term receivables1,457,182,459---1,457,182,459Total10,311,215,079293,580,976230,764,70914,984,624,88825,820,185,6522022
Expected credit loss overthe next 12 months
Expected credit loss in the entire lifecycle
TotalStage IStage IIStage IIISimple method
Monetary funds2,397,047,713---2,397,047,713Held-for-trading nancial assets877,483,342---877,483,342Notes receivable---56,114,65756,114,657Accounts receivable---7,193,649,8557,193,649,855Contract assets---3,243,073,1363,243,073,136Receivables nancing439,912,428---439,912,428Other receivables667,029,58297,751,424230,764,291-995,545,297Non-current assets due within one year900,213,411---900,213,411Other non-current assets---4,246,061,2114,246,061,211Long-term receivables2,402,265,565---2,402,265,565Total7,683,952,04197,751,424230,764,29114,738,898,85922,751,366,615Liquidity riskSubsidiaries within the Group are responsible for their own cash-flow prospects. The financial section of the headoce continues to monitor the short-term and long-term capital demands at the group level after collecting the cashflows prospects of all subsidiaries, to guarantee the sufficient cash reserve and cashable securities. Meanwhile, thenancial section of the head oce continues to monitor the nancial and non-nancial indicators prescribed in credit-granting agreements and loan agreements, to ensure that the Group can get sucient line of credit from major nancialinstitutions, so as to satisfy the short-term and long-term capital demands of all subsidiaries of the Group.As at December 31, 2023, the various financial liabilities of the Group are listed as follows by due dates based onundiscounted contracted cash ows (including principal and interest):
Section X Financial Report2023
2023Within 1 year1-2 years2-5 yearsOver 5 yearsTotalShort-term borrowings4,810,142,051---4,810,142,051Notes payable5,533,470,582---5,533,470,582Accounts payable8,616,059,138---8,616,059,138Other payables1,006,406,221---1,006,406,221Non-current liabilities duewithin oneyear
8,607,747,605 ---8,607,747,605Long-term borrowings-7,315,902,2296,251,686,2132,048,448,06115,616,036,503Long-term payables-775,885,499688,915,129558,677,0022,023,477,630Total28,573,825,597 8,091,787,728 6,940,601,3422,607,125,063 46,213,339,7302022
2022
Within 1 year1-2 years2-5 yearsOver 5 yearsTotalShort-term borrowings1,828,151,415---1,828,151,415Notes payable5,401,258,897---5,401,258,897Accounts payable7,255,123,334---7,255,123,334Other payables1,299,724,875---1,299,724,875Non-current liabilities duewithin oneyear
7,108,829,479---7,108,829,479Long-term borrowings-8,910,688,14411,306,743,6782,077,872,63022,295,304,452Long-term payables-746,492,462636,721,312848,481,9542,231,695,728Total22,893,088,0009,657,180,60611,943,464,9902,926,354,58447,420,088,180Market riskInterest rate riskThe Group’s interest rate risk is mainly from such long-term interest-bearing liabilities as long-term bank borrowingsand long-term payables. Floating-rate financial liabilities expose the Group to cash flow interest rate risk while fixed-rate nancial liabilities expose the Group to fair value interest rate risk. The Group determines the relative proportion ofcontracts with xed interest rate and contracts with oating interest rate according to the current market environment.As at December 31, 2023, the Group’s long-term interest-bearing liabilities mainly were the oating rate contracts pricedin USD, and the xed rate contracts priced in RMB.The market interest rate uctuating risks that the Group encounters are mainly relevant to the long-term liabilities wherethe interest is calculated at the oating interest rate. The Group manages interest rate risk by closely monitoring interestrate changes and regularly reviewing borrowings.The nance department in the headquarters of the Group continues monitoring and controlling the interest rate level ofthe Group. The increase in interest rate will increase the costs of the new interest-bearing debts and the interest expensesof interest-bearing debts failing to be paid up by the Group and subject to the interest calculation at oating interest rate,and will, signicantly and adversely, aect the Group's nancial results; the management will control partial interest raterisk based on the newest market situation through the swap contract and other interest rate swap arrangements. In 2022and 2023, the Group had no interest rate swap arrangement.The following table shows the sensitivity analysis of the interest rate risk, reflecting the effect of the reasonable andpossible changes in the interest rate on net prot or loss (through the impact on loan with oating interest rate) and thenet amount of other comprehensive income after tax, based on the assumption of no change in other variables.
ANNUAL REPORT2023
2023
Base point Increase /
(Decrease)
Net prot or loss Increase/
(Decrease)
Net of tax of other comprehensiveincome Increase/(Decrease)
Total shareholders' equityIncrease / (Decrease)RMB100(76,054,462)-(76,054,462)RMB(100)76,054,462-76,054,4622022
Base point Increase /
(Decrease)
Net prot or loss Increase/
(Decrease)
Net of tax of other comprehensiveincome Increase/(Decrease)
Total shareholders' equityIncrease / (Decrease)
RMB100(26,340,273)-(26,340,273)RMB(100)26,340,273-26,340,273Exchange rate riskThe Group is exposed to transactional exchange rate risk. Such risks are due to sales or purchases made by the operatingentity in currencies other than its functional currency. The Group’s main production is within the territory of China, but itssales and purchase is settled in USD. However, there still were foreign exchange risks in the foreign currency assets andliabilities and future foreign currency transactions that have been recognized by the Group (foreign currency assets andliabilities and foreign currency transactions are priced mainly in USD). The nance department of the Headquarters of theGroup is responsible for supervising the scale of the Group's foreign currency transactions and foreign currency assetsand liabilities to minimize the foreign exchange risks.The following table is a sensitivity analysis of exchange rate risk, reecting the assumption that all other variables willremain the same, when the USD exchange rate changes reasonably and possibly, it will aect the net prot or loss (due tothe change in fair value of monetary assets and liabilities) and other comprehensive income, net of tax (due to the changein fair value of forward foreign exchange contract).2023
USD exchange rateIncrease/(Decrease)
Net prot or loss Increase/
(Decrease)
Net of tax of othercomprehensive income Increase/
(Decrease)
Total shareholders' equityIncrease/(Decrease)
RMB appreciation against USD1%29,636,924-29,636,924RMB depreciation against USD-1%(29,636,924)-(29,636,924)
2022
USD exchange rateIncrease/(Decrease)
Net prot or loss Increase/
(Decrease)
Net of tax of othercomprehensive income Increase/
(Decrease)
Total shareholders' equity
Increase/(Decrease)
RMB appreciation against USD1%12,823,427-12,823,427RMB depreciation against USD-1%(12,823,427)-(12,823,427)
Price risk of equity instrument investmentThe price risk of equity instrument investment refers to the risk that the fair value of equity securities decreases due tothe change of stock index level and individual securities value. As at December 31, 2023, the Group was exposed to theprice risk of equity instrument investment arising from the individual equity instrument investment classied as equityinstrument investment measured at fair value through the current prot or loss. The listed equity instrument investmentheld by the Group is listed on the stock exchanges of Shanghai, Shenzhen and Hong Kong, and measured at the marketquotation on the balance sheet date.The following table shows the sensitivity of the Group's net prot or loss to the change of 1% of the fair value of equityinstrument investment (based on the book value on the balance sheet date) under the assumption that all other variablesremain unchanged.
Section X Financial Report
2023
Book value ofequity instrument
investment
Increase/(decrease)in net prot or loss
Increase/(decrease) in net oftax of other comprehensive
income
Increase/(decrease)in total shareholders'
equityEquity instrument investmentEquity instrument investment measured atfair value through the current prot or loss
712,156,3985,973,915-5,973,915Equity instrument investment measured atfair value through the other comprehensiveincome
104,859,374-891,305891,3052022
Book value ofequity instrument
investment
Increase/(decrease) innet prot or loss
Increase/(decrease) in net oftax of other comprehensive
income
Increase/(decrease)in total shareholders'
equity
Equity instrument investmentEquity instrument investment measured atfair value through the current prot or loss
869,045,0667,292,625-7,292,625Equity instrument investment measured atfair value through the other comprehensiveincome
73,475,619-624,543624,543Capital managementThe main goal of the Group’s capital management is to guarantee the Group’s persistent operatio and maintain a soundcapital ratio to support business development and maximize shareholders’ interests.In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,return capital to shareholders, issue new shares or sell assets to reduce debt.The total capital of the Group is the shareholders' equity as listed in the consolidated balance sheet. The Group is notsubject to external mandatory capital requirements and makes use of the asset-liability ratio to monitor capital. This ratiois calculated by the net debt divided by total capital. The net debt is the total borrowing (including short-term borrowingslisted in the consolidated balance sheet, other non-current liabilities due within one year (excluding lease liabilities), long-term borrowings, other payables and interest-bearing liabilities in long-term payables minus cash and cash equivalents).The total capital is the total shareholders’ equity plus net debt.As at December 31, 2023 and December 31, 2022, the debt ratio of the Group is listed as follows:
20232022
Debt ratio62%63%
2. Hedging
(1). The Company conducts hedging business for risk management
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
(2). The Company conducts eligible hedging business and applies hedging accounting
?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
(3). The Company conducts hedging business for risk management, expects to achieve risk management objectives but
does not apply hedging accounting?Applicable√ Not Applicable
ANNUAL REPORT2023
Other description:
?Applicable√ Not Applicable
3. Transfer of nancial asset
(1). Classication of transfer method
√Applicable? Not Applicable
Unit: Yuan Currency: CNYTransfer method
Nature of transferred
nancial assets
Amount of transferrednancial assets
DerecognitionBasis for judgment of derecognitionNote endorsementNotes receivable995,992,018
Amount
derecognized
Already transferred almost all of its risksand remunerationAsset securitization (remark)Accounts receivable678,146,131
Amount
derecognized
Already transferred almost all of its risksand remunerationDiscount billNotes receivable383,612,553
Amount
derecognized
Already transferred almost all of its risksand remunerationEndorsement of debt certicatesof digital accounts receivable
Receivables nancing33,809,204
Amount
derecognized
Already transferred almost all of its risksand remunerationTotal/2,091,559,906//
(2). Financial assets derecognized due to transfer
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemMethod of nancial asset transfer
Amount of nancial assets
derecognized
Prot or loss related to derecognition
Notes receivableNote endorsement995,992,018Accounts receivableAsset securitization678,146,131-36,768,129Notes receivableDiscount bill383,612,553-16,628,696Receivables nancing
Endorsement of debt certificates ofdigital accounts receivable
33,809,204Total/2,091,559,906-53,396,825
(3). Transferred nancial assets involved continuously
?Applicable√ Not ApplicableOther description:
√Applicable? Not ApplicableNote: In 2023, the book balance of the derecognized accounts receivable was RMB 2,060,268,380 and the book balance ofcontract assets was RMB 66,537,374 (2022: RMB 837,502,837 of book balance of accounts receivable, RMB 182,227,057 ofbook balance of contract assets), and a loss of RMB 115,312,416 (2022: RMB 20,135,378) upon derecognition was includedin investment income.Transferred nancial assets derecognized as a whole but involved continuouslyAs at December 31, 2023, the book value of bank acceptance bills given by the Group upon endorsement to suppliersfor settlement of accounts payable but not yet due on the balance sheet date was RMB 995,992,018 (December 31,2022: RMB 511,674,330). As at December 31, 2023, the maturity term of such bill was 1 - 12 months. In accordance withthe relevant provisions of the Negotiable Instruments Law, if the acceptance bank refuses to pay, the bill holder shall beentitled to recourse to any one, several or all of the bill debtors, including the Group, regardless of the order of the billdebtors (“continue to be involved”). The Group considered that it had transferred almost all risks and rewards of suchbill, therefore, the aforesaid book value and relevant settled accounts payable should be derecognized as a whole. Themaximum losses and undiscounted cash ows that continue to be involved were equal to the book value. The Groupconsidered that the fair value with continuous involvement was insignicant.
Section X Financial Report
The Group had no income or expense which had been recognized for the current year or accumulatively as it had beenderecognized as a whole but continued to be involved in the nancial assets. The endorsement of bank acceptance billreceivable happened in this year evenly.
XIII. Fair value disclosure
1. Ending fair value of assets and liabilities measured at fair value
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Ending fair valueFair valuemeasurementat level 1
Fair valuemeasurementat level 2
Fair valuemeasurement at
level 3
TotalI. Continuous fair value measurement(I) Held-for-trading nancial assets712,156,3978,438,278720,594,675
1. Financial assets measured at fair value through the current prot or loss712,156,3978,438,278720,594,675
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative nancial assets8,438,2788,438,278
(4) Equity of listed companies712,156,397712,156,397
2. Financial assets designated to be measured at fair value through the current
prot or loss
(1) Debt instrument investment
(2) Equity instrument investments
(II) Other debtinvestment(III) Investment in other equity instruments104,859,374104,859,374(IV) Investment property
1. Land use right for lease
2. Buildings for lease
3. Land use right held for transfer after appreciation
(V) Biological assets
1. Consumptive biological assets
2. Productive biological assets
(VI) Receivables nancing965,569,122965,569,122Total assets measured with continuous fair value continuously712,156,397965,569,122113,297,6521,791,023,171(VII) Held-for-trading nancial liabilities
1. Financial liabilities measured at fair value through current prot or loss
Including: Trading bonds issued
Derivative nancial liabilitiesOthers
2. Financial liabilities designated to be measured at fair value through the current
prot or lossTotal liabilities measured with continuous fair value continuouslyII. Non-continuous fair value measurement (I) Assets held for saleTotal assets not continuously measured at fair valueTotal liabilities not continuously measured at fair value
2. The basis for determining the market value of continuous and non-continuous fair value measurement
items at level 1√Applicable? Not Applicable
ANNUAL REPORT2023The fair value of listed equity instrument investments is determined by market quotations.
3. Valuation techniques and the qualitative and quantitative information of important parameters for
continuous and non-continuous fair value measurement items at level 2
√Applicable? Not ApplicableWhere there is an active market traded for a nancial instrument, the Group shall adopt the quoted price in the activemarket to determine the fair value thereof; where there is no active market traded for a nancial instrument, the Groupshall adopt value appraisal techniques to determine its fair value. The valuation models used are discounted cash owmodel and market comparable company model. The input value of valuation techniques mainly includes the weightedaverage cost of capital, liquidity discount, price to book ratio of comparable companies.The fair value of receivables nancing is determined by the discounted future cash ow method, with the market yield ofother nancial instruments with similar contract terms, credit risks and remaining maturities as the discount rate.
4. Valuation techniques and the qualitative and quantitative information of important parameters for
continuous and non-continuous fair value measurement items at level 3
√Applicable? Not ApplicableThe Group’s finance department is led by the financial manager, who is responsible for formulating policies andprocedures for fair value measurement of nancial instruments. The nancial manager reports directly to the CFO. Oneach balance sheet date, the nancial department analyzes the value uctuations of nancial instruments and conrmthe main entered values suitable for valuations. The valuation must be reviewed and approved by the CFO. For thepurpose of annual nancial statements, the valuation process and results are discussed with the Audit Committee once ayear.The fair value of non-listed equity instrument investments is estimated using the market approach based on unobservablemarket prices or interest rate assumptions. The Group needs to identify comparable listed companies based on industry,size, leverage and strategy, and calculate appropriate market multiples, such as price-to-earnings ratio multiples, for eachcomparable listed company identied. Adjustments will be made based on the specic facts and circumstances of theenterprise, taking into account factors such as liquidity and size dierences between comparable listed companies. TheGroup believes that the fair value and its changes estimated by valuation techniques are reasonable and are also the mostappropriate value at the balance sheet date. For the fair value of non-listed equity instrument investments, the Groupestimates the potential impact of using other reasonable and possible assumptions as inputs to the valuation model.The following is an overview of the important unobservable inputs to the third level of fair value measurement:
Fair value as at the end
of the year
Valuation techniqueUnobservable input value
Weightedaverage/scopeLevel 32023:
Held-for-trading financial assets -equity instrument investments
In 2023: 8,438,278Discount cash ow model
Weighted average cost ofcapital
11% Liquidity discount26%Other equity instrument investmentIn 2023: 104,859,374
Comparable company modeon the market
P/B ratio of comparablecompany
1.7-2.2
Held-for-trading financial assets -equity instrument investments
In 2022: 8,438,278Discount cash ow model
Weighted average cost ofcapital
11% Liquidity discount28%Other equity instrument investmentIn 2022: 73,475,619
Comparable company modeon the market
P/B ratio of comparablecompany
1.3-2.6
5. For continuous fair value measurement items at level 3, the adjustment information between beginning
and ending book value and the sensitivity analysis of unobservable parameters?Applicable√ Not Applicable
Section X Financial Report
6. For continuous fair value measurement items, if there is conversion between dierent levels in the current
period, the reasons for conversion and the policies for determining the conversion time
?Applicable√ Not Applicable
7. Changes in valuation technology in the current period and reasons for changes
?Applicable√ Not Applicable
8. Fair values of nancial assets and nancial liabilities not measured at fair value
?Applicable√ Not Applicable
9. Others
√Applicable? Not ApplicableFor continuous fair value measurement items at level 3, the adjustment information is as follows:
2023
Beginningbalance
Transferintolevel 3Transfer
out oflevel 3
Total gains or losses forthe current period
PurchaseIssueSaleSettlement
Endingbalance
Assets held atthe end of theyear Changes inunrealized gainsor losses for theperiod includedin prot or lossIncludedin protor loss
Includedin othercomprehensiveincomeHeld-for- tradingnancial assetsEquityinstrumentinvestments
8,438,278--------8,438,278-Other equityinstruments
73,475,619---12,593,75518,790,000---104,859,374-Total81,913,897---12,593,75518,790,000---113,297,652-2022
Beginning
balance
Transfer
intolevel 3Transferout oflevel 3Total gains or losses for thecurrent period
PurchaseIssueSaleSettlement
Endingbalance
Assets held atthe end of theyear Changes inunrealized gainsor losses for theperiod includedin prot or lossIncludedin protor loss
Includedin othercomprehensive
income
Held-for- tradingnancial assets
Equityinstrumentinvestments
8,438,278--------8,438,278-Other equityinstruments
66,280,045---7,195,574----73,475,619-Total74,718,323---7,195,574----81,913,897-
XIV. Related parties and related party transactions
1. Parent company
√Applicable? Not Applicable
ANNUAL REPORT2023
Unit: Yuan Currency: CNY
Parent company
Registration
place
Business natureRegistered capital
Shareholding ratio inthe Company (%)
Voting ratio in theCompany (%)China CommunicationsConstruction Group Co., Ltd.
Beijing City
Port project contracting andrelated business
5,855,423,8304646Description of the parent company of the CompanyNoneThe nal controlling party of the Company is the China Communications Construction Group Co., Ltd.Other description:
None
2. Subsidiaries
For details of the subsidiaries of the Company, please refer to Note X (1)√Applicable? Not ApplicableFor details of the subsidiaries, please refer to Note X (1).
3. Joint ventures and associates
For details of the important joint ventures or associates of the Company, please refer to Note X (3).?Applicable√ Not ApplicableOther joint ventures or associates that have related party transactions with the Company in the current period or formedbalance in the previous period are as follows.?Applicable√ Not ApplicableOther description?Applicable√ Not Applicable
4. Other related parties
√Applicable? Not ApplicableName of other related partiesRelationship with related partyFriede & Goldman, Llc.Controlled by the same parent companyZPMC ISTANBUL LIMAN MAKINALARI Tic A.S.Controlled by the same parent companyBeijing BLDJ Landscape Architecture Institute Co., LTD.Controlled by the same parent companyBeijing Rate Electronic Technology Developing Co., Ltd.Controlled by the same parent companyCCCC Guidu Highway Construction Co., Ltd.Controlled by the same parent companyJiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd.Controlled by the same parent companyJiujiang Education Consulting Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyRoad and Bridge Construction Chongqing Fengfu Expressway Development Co., Ltd.Controlled by the same parent companyRoad and Bridge Construction Chongqing Fengshi Expressway Development Co., Ltd.Controlled by the same parent companySanYa Phoenix Island International Cruise Terminal Development Co., Ltd.Controlled by the same parent companyXiamen Jiehang Engineering Testing Technology Co., Ltd.Controlled by the same parent companyDaHua Technology Co., Ltd.Controlled by the same parent companyShanghai Waterway Logistics Co., LtdControlled by the same parent companyShanghai Jiangtian Industrial Co., Ltd.Controlled by the same parent companyShanghai Communications Construction Contracting Co., Ltd.Controlled by the same parent companyShanghai Interlink Road & Bridge Engineering Co., Ltd.Controlled by the same parent companyShanghai Zhensha Longfu Machinery Co., Ltd.Controlled by the same parent company
Section X Financial Report
Name of other related partiesRelationship with related party
Shanghai China Communications Water Transportation Design & Research Co., Ltd.Controlled by the same parent companySichuan Road & Bridge Group Co., Ltd.Controlled by the same parent companyTianjin Harbour Engineering Quality Inspection Center Co., Ltd.Controlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyZhenhua Engineering Co., Ltd.Controlled by the same parent companyXiangtan CCCC Infrastructure Investment and Construction Co., Ltd.Controlled by the same parent companyYueyang Chenglingji New Port Co., Ltd.Controlled by the same parent companyZhejiang Lvzhou Photovoltaic Technology Co., Ltd.Controlled by the same parent companyZhenhua (Singapore) Engineering Co., Ltd.Controlled by the same parent companyChina Harbour Engineering Co., Ltd.Controlled by the same parent companyChina Highway Vehicle & Machinery Co., Ltd.Controlled by the same parent companyChina Communications Construction Company Ltd.Controlled by the same parent companyChina Communications Materials Co., Ltd.Controlled by the same parent companyChina Communications Information Technology Group Co., Ltd.Controlled by the same parent companyChina Road & Bridge CorporationControlled by the same parent companyChuwa Risheng (Beijing) International Trade Co., Ltd.Controlled by the same parent companyChuwa Bussan Co., Ltd.Controlled by the same parent companyCCCC (Xiamen) Information Co., LtdControlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyCCCC (Zhengzhou) Construction Co., Ltd.Controlled by the same parent companyCCCC Finance Company Ltd.Controlled by the same parent companyCCCC Industrial Investment Holding Company Ltd.Controlled by the same parent companyCCCC Chenzhou Road Construction Machinery Co., Ltd.Controlled by the same parent companyCCCC Urban Operation Management Co., Ltd.Controlled by the same parent companyCCCC Second Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC Second Highway Consultants Co., Ltd.Controlled by the same parent companyCCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Second Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC Third Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Third Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Fourth Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC First Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC Northeast Investment Co., Ltd.Controlled by the same parent companyCCCC - SHEC Second Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC-SHEC Fifth Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC-SHEC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC-SHEC Railway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Railway Construction Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.4 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyThe First Construction Company of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Highway Bridges National Engineering Research Centre Co., Ltd.Controlled by the same parent companyCCCC International (Hong Kong) Holdings LimitedControlled by the same parent companyCCCC Haifeng Wind Power Development Co., Ltd.Controlled by the same parent company
ANNUAL REPORT2023Name of other related partiesRelationship with related party
CCCC Marine Engineering & Technology Research Center Co., Ltd.Controlled by the same parent companyCCCC Ocean Investment Holding Co., Ltd. (Consolidated)Controlled by the same parent companyCCCC East China Investment Co., Ltd.Controlled by the same parent companyCCCC Electrical and Mechanical Engineering Co., Ltd.Controlled by the same parent companyChina Communications Construction Company (M) Sdn. Bhd.Controlled by the same parent companyCCCC Construction Group Co., Ltd.Controlled by the same parent companyRoad & Bridge East China Engineering Co., Ltd.Controlled by the same parent companyRoad & Bridge International Co., Ltd.Controlled by the same parent companyCCCC Third Harbor Engineering Co., Ltd. Xiamen BranchControlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Shanghai Dredging Co., Ltd.Controlled by the same parent companyCCCC Shanghai Channel Equipment Industry Co., Ltd.Controlled by the same parent companyCCCC Shanghai Equipment Engineering Co., Ltd.Controlled by the same parent companyCCCC Design Consulting Group Co., Ltd.Controlled by the same parent companyCCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.Controlled by the same parent companyCCCC Dredging (Group) Co., Ltd.Controlled by the same parent companyCCCC National Engineering Research Center of Dredging Technology and Equipment Co., Ltd.Controlled by the same parent companyJiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Water Transportation Planning and Design Institute Co., Ltd.Controlled by the same parent companyNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyJiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Tunnel Engineering Company LimitedControlled by the same parent companyHarbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyCCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.Controlled by the same parent companyCCCC Tianjin Industry and Trade Co., Ltd.Controlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyCCCC Xingyu Technology Co., LtdControlled by the same parent companyCCCC Xiongan Urban Construction Development Co., Ltd.Controlled by the same parent companyCCCC Xiongan Financial Leasing Co., Ltd.Controlled by the same parent companyCCCC Yancheng Construction Development Co., Ltd.Controlled by the same parent companyNo. 6 Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC First Highway Fifth Engineering Co., Ltd.Controlled by the same parent companyCCCC First Highway Electrication Engineering Co., Ltd.Controlled by the same parent companyFirst Highway Engineering Group Co., Ltd.Controlled by the same parent companyChongqing Yongjiang Expressway Investment and Construction Co., Ltd. of FHEC of CCCCControlled by the same parent companyInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Capital Holdings Co., Ltd.Controlled by the same parent companyCCCC Asset Management Co., Ltd.Controlled by the same parent companyCCCC Leasing (Shandong) Co., Ltd.Controlled by the same parent companyCCCC Leasing Jiahua No.2 Co., Ltd.Controlled by the same parent companyCCCC Leasing Jiahua No.1 Co., Ltd.Controlled by the same parent companyCNPC & CCCC Petroleum Sales Co., Ltd.Controlled by the same parent companyChongqing Zhongwan Expressway Co., Ltd.Controlled by the same parent company
Other description: None
Section X Financial Report
5. Related party transactions
(1). Purchase and sales of goods, and rendering and receipt of labor services
Purchase of goods/receipt of labor services√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Related party
Content oftransaction
Amountincurred inthe currentperiod
Approvedtransactionlimit (ifapplicable)
Exceedingtransactionlimit (ifapplicable)
Amountincurred inthe previousperiodCCCC Third Harbor Engineering Co., Ltd.Rendering of service171,946,593?283,109,058Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.Rendering of service52,670,5361,826,083Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd.Rendering of service32,556,696China Communications Construction Company (M) Sdn. Bhd.Rendering of service20,833,485Road & Bridge International Co., Ltd.Rendering of service16,972,47741,038Zhejiang Lvzhou Photovoltaic Technology Co., Ltd.Rendering of service9,234,970China Communications Construction Company Ltd.Rendering of service6,321,921ZPMC Changzhou Coatings Co., Ltd.Rendering of service4,131,20640,201CCCC Shanghai Equipment Engineering Co., Ltd.Rendering of service919,995CCCC Financial Leasing Co., Ltd.Rendering of service691,835CCCC Photovoltaic Technology Co., Ltd.Rendering of service128,742CCCC Shanghai Dredging Co., Ltd.Rendering of service48,6601,458,199CCCC (Xiamen) Information Co., LtdRendering of service18,247CCCC Third Highway Engineering Co., Ltd.Rendering of service36,092,540Road and Bridge Construction Chongqing Fengfu ExpresswayDevelopment Co., Ltd.
Rendering of service2,335,010Shanghai Jiangtian Industrial Co., Ltd.Rendering of service1,504,488China Road & Bridge CorporationRendering of service1,201,790Road and Bridge Construction Chongqing Fengshi ExpresswayDevelopment Co., Ltd.
Rendering of service756,398CCCC Second Harbor Engineering Co., Ltd.Rendering of service567,172CCCC Tianjin Dredging Co., Ltd.Rendering of service471,698CCCC First Harbor Engineering Co., Ltd.Rendering of service452,830No.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co.,Ltd.
Rendering of service188,679Chongqing Yongjiang Expressway Investment and ConstructionCo., Ltd. of FHEC of CCCC
Rendering of service172,087China Communications Information Technology Group Co., Ltd.Rendering of service47,830Jiujiang Education Consulting Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
Rendering of service1,698CCCC Haifeng Wind Power Development Co., Ltd.Sales of goods1,140,744,581374,901,683CCCC Third Harbor Engineering Co., Ltd.Sales of goods307,346,561124,835,563Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.Sales of goods734,361,9571,288,582,356CCCC International (Hong Kong) Holdings LimitedSales of goods541,656,238China Harbour Engineering Co., Ltd.Sales of goods368,658,012441,437,766CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
Sales of goods267,238,142Road & Bridge International Co., Ltd.Sales of goods201,584,25010,764,510CCCC Second Harbor Engineering Co., Ltd.Sales of goods238,838,0133,102,305China Road & Bridge CorporationSales of goods84,833,201446,539,717CCCC Second Highway Engineering Co., Ltd.Sales of goods65,503,34636,106,344CCCC Tianjin Dredging Co., Ltd.Sales of goods58,364,5201,198,938
ANNUAL REPORT2023
Related party
Content oftransaction
Amountincurred inthe current
period
Approvedtransactionlimit (ifapplicable)
Exceedingtransactionlimit (ifapplicable)
Amountincurred inthe previousperiod
CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.Sales of goods50,915,82632,668,690CCCC First Harbor Engineering Co., Ltd.Sales of goods44,364,127167,241,398CCCC Third Highway Engineering Co., Ltd.Sales of goods36,902,68357,013,916ZPMC Southeast Asia Pte. LtdSales of goods15,799,5982,611,725CCCC-SHEC First Highway Engineering Co., Ltd.Sales of goods15,698,029CCCC Fourth Harbor Engineering Co., Ltd.Sales of goods14,761,06245,044,248CCCC Shanghai Equipment Engineering Co., Ltd.Sales of goods12,501,272838,967CCCC Electrical and Mechanical Engineering Co., Ltd.Sales of goods10,606,881Sichuan Road & Bridge Group Co., Ltd.Sales of goods4,864,250Friede & Goldman, Llc.Sales of goods2,688,794Chongqing Zhongwan Expressway Co., Ltd.Sales of goods1,995,329CCCC Water Transportation Planning and Design Institute Co., Ltd.Sales of goods1,698,113ZPMC Mediterranean Liman Makinalari Ticaret Anonim SirketiSales of goods1,429,299Road and Bridge Construction Chongqing Fengfu ExpresswayDevelopment Co., Ltd.
Sales of goods1,388,404Road and Bridge Construction Chongqing Fengshi ExpresswayDevelopment Co., Ltd.
Sales of goods1,141,4351,202,880CCCC Third Harbor Consultants Co., Ltd.Sales of goods695,283ZPMC Changzhou Coatings Co., Ltd.Sales of goods628,066160,463China Communications Construction Company Ltd.Sales of goods566,03828,946,178CCCC Shanghai Dredging Co., Ltd.Sales of goods499,115CCCC First Highway Engineering Co., Ltd.Sales of goods322,161CCCC First Harbor Consultants Co., Ltd.Sales of goods75,472Chongqing Yongjiang Expressway Investment and ConstructionCo., Ltd. of FHEC of CCCC
Sales of goods29,361No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co.,Ltd.
Sales of goods213,716,814No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co.,Ltd.
Sales of goods208,387,950CCCC - SHEC Second Highway Engineering Co., Ltd.Sales of goods8,060,013CCCC Tianjin Industry and Trade Co., Ltd.Sales of goods6,767,181CCCC Construction Group Co., Ltd.Sales of goods270,456CCCC (Xiamen) Information Co., LtdSales of goods?166,240Sales of goods/rendering of labor services√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Related partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous period
CCCC Shanghai Equipment Engineering Co., Ltd.Receipt of labor services752,922,950368,095,891CCCC Third Highway Engineering Co., Ltd.Receipt of labor services687,713,755220,317,269CCCC Third Harbor Engineering Co., Ltd.Receipt of labor services371,129,367134,197,024CCCC Second Harbor Engineering Co., Ltd.Receipt of labor services222,904,254227,255,981CCCC Dredging (Group) Co., Ltd.Receipt of labor services158,493,251CCCC First Highway Engineering Co., Ltd.Receipt of labor services149,740,693293,136,519CCCC Tianjin Dredging Co., Ltd.Receipt of labor services109,387,957152,397,803No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Receipt of labor services66,133,834452,903,273Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.Receipt of labor services62,221,99014,150,943
Section X Financial ReportRelated partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous period
Road & Bridge East China Engineering Co., Ltd.Receipt of labor services14,183,52650,674,337CCCC Water Transportation Planning and Design Institute Co., Ltd.Receipt of labor services14,017,842Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth HarborEngineering Co., Ltd.
Receipt of labor services12,637,168Road & Bridge International Co., Ltd.Receipt of labor services11,689,044CCCC Shanghai Dredging Co., Ltd.Receipt of labor services11,588,5829,147,073First Highway Engineering Group Co., Ltd.Receipt of labor services8,304,464CCCC Second Highway Consultants Co., Ltd.Receipt of labor services2,664,1283,475,462CCCC Photovoltaic Technology Co., Ltd.Receipt of labor services1,599,475CCCGReceipt of labor services1,517,333CCCC First Harbor Engineering Co., Ltd.Receipt of labor services1,326,2002,321,373No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Receipt of labor services1,026,549ZPMC Changzhou Coatings Co., Ltd.Receipt of labor services806,027CCCC Urban Operation Management Co., Ltd.Receipt of labor services712,686CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
Receipt of labor services471,698CCCC Third Harbor Consultants Co., Ltd.Receipt of labor services1,051,663939,041CCCC Xingyu Technology Co., LtdReceipt of labor services230,796861,426CCCC Design Consulting Group Co., Ltd.Receipt of labor services227,920China Road & Bridge CorporationReceipt of labor services154,3254,281,621China Communications Information Technology Group Co., Ltd.Receipt of labor services112,65518,659,881China Communications Materials Co., Ltd.Receipt of labor services75,472Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd.Receipt of labor services38,666ZPMC Southeast Asia Pte. LtdReceipt of labor services40,615,972CCCC Construction Group Co., Ltd.Receipt of labor services28,301,887Shanghai Communications Construction Contracting Co., Ltd.Receipt of labor services7,018,983Shanghai China Communications Water Transportation Design & ResearchCo., Ltd.
Receipt of labor services4,139,151Shanghai Waterway Logistics Co., LtdReceipt of labor services1,492,658Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Receipt of labor services1,344,340Shanghai Interlink Road & Bridge Engineering Co., Ltd.Receipt of labor services1,159,917CNPC & CCCC Petroleum Sales Co., Ltd.Receipt of labor services965,323ZPMC Mediterranean Liman Makinalari Ticaret Anonim SirketiReceipt of labor services885,446Beijing BLDJ Landscape Architecture Institute Co., LTD.Receipt of labor services366,037CCCC Second Harbor Consultants Co., Ltd.Receipt of labor services230,063CCCC (Xiamen) Information Co., LtdReceipt of labor services45,217CCCC Shanghai Equipment Engineering Co., Ltd.Purchase of goods 300,511,230370,483,873CCCC Tianjin Industry and Trade Co., Ltd.Purchase of goods 234,024,3363,899,530ZPMC Changzhou Coatings Co., Ltd.Purchase of goods 117,896,910131,829,860CNPC & CCCC Petroleum Sales Co., Ltd.Purchase of goods 80,031,23153,399,047CCCC Third Harbor Engineering Co., Ltd.Purchase of goods 33,092,07837,699,113China Communications Information Technology Group Co., Ltd.Purchase of goods 27,915,3004,001,152Chuwa Risheng (Beijing) International Trade Co., Ltd.Purchase of goods 15,807,6557,280,458CCCC (Xiamen) Information Co., LtdPurchase of goods 12,959,4161,022,057Shanghai Zhensha Longfu Machinery Co., Ltd.Purchase of goods 9,824,7115,974,560CCCC Fourth Harbor Consultants Co., Ltd.Purchase of goods 8,093,3633,623,894CCCC Third Harbor Consultants Co., Ltd.Purchase of goods 4,469,02731,363,816CCCC Urban Operation Management Co., Ltd.Purchase of goods 3,966,707CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.Purchase of goods 1,769,912CCCC Photovoltaic Technology Co., Ltd.Purchase of goods 553,577
ANNUAL REPORT2023Related partyContent of transaction
Amount incurred in
the current period
Amount incurred inthe previous periodChuwa Bussan Co., Ltd.Purchase of goods 251,127CCCC Xingyu Technology Co., LtdPurchase of goods 233,588266,896CCCC Shanghai Channel Equipment Industry Co., Ltd.Purchase of goods 30,973ZPMC Southeast Asia Pte. LtdPurchase of goods 8,27628,685,372Shanghai Jiangtian Industrial Co., Ltd.Purchase of goods 13,419,612CCCC Water Transportation Planning and Design Institute Co., Ltd.Purchase of goods 8,336,283Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth HarborEngineering Co., Ltd.
Purchase of goods 6,318,584Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Purchase of goods 4,867,257ZPMC Mediterranean Liman Makinalari Ticaret Anonim SirketiPurchase of goods 2,347,434CCCC Highway Bridges National Engineering Research Centre Co., Ltd.Purchase of goods 1,189,381Xing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Purchase of goods 775,633Shanghai Waterway Logistics Co., LtdPurchase of goods 33,033
Description of related party transactions of purchase and sales of goods, rendering and receipt of labor services?Applicable√ Not Applicable
(2). Trusteeship/contracting and entrustment/outsourcing
Trusteeship/contracting of the Company:
?Applicable√ Not ApplicableDescription of the trusteeship/contracting with related parties?Applicable√ Not ApplicableEntrustment/outsourcing of the Company?Applicable√ Not ApplicableManagement/outsourcing with related parties?Applicable√ Not Applicable
(3). Leases with related parties
The Company as the lessor:
?Applicable√ Not ApplicableThe Company as the lessee:
?Applicable√ Not ApplicableDescription of leases with related parties?Applicable√ Not Applicable
(4). Guarantees with related parties
The Company as the guarantor?Applicable√ Not ApplicableThe Company as the guaranteed party?Applicable√ Not ApplicableDescription of the guarantees with related parties?Applicable√ Not Applicable
(5). Lendings with related parties
?Applicable√ Not Applicable
Section X Financial Report
(6). Assets transfer and debt restructuring of related parties
?Applicable√ Not Applicable
(7). Remuneration of key management personnel
√Applicable? Not Applicable
Unit: 10,000 Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous period
Remuneration of key management personnel1,1351,535
(8). Other related party transactions
√Applicable? Not ApplicableDistribution of dividends to related parties
20232022
CCCG75,938,271CCCC International (Hong Kong) Holdings Limited45,837,792Total121,776,063Deposits in (withdrawal of deposits from) related parties
20232022
CCCC Finance Company Ltd.1,596,694,115(1,600,236,793)
Borrowings from related parties
20232022
CCCC Xiongan Financial Leasing Co., Ltd.158,922,791 120,000,000CCCC Finance Company Ltd. (Remark)48,840,000 544,000,000Total207,762,791 664,000,000Note: The borrowing of RMB 48,840,000 (2022: RMB 544,000,000) in this year is a loan granted by CCCC Finance CompanyLtd. to the Company on behalf of China Communications Construction Company Ltd. The three parties signed theEntrusted Loan Contract.Interest collected from related parties
20232022CCCC Finance Company Ltd.2,870,317 672,361Xiangtan CCCC Infrastructure Investment and Construction Co., Ltd. 28,423,585Total2,870,317 29,095,946
Interest paid to related parties
20232022CCCC Finance Company Ltd.13,273,2827,437,556CCCC Xiongan Financial Leasing Co., Ltd.8,220,33214,591,870CCCC Financial Leasing Co., Ltd.156,318CCCC Leasing Jiahua No.1 Co., Ltd.95,492CCCC Leasing Jiahua No.2 Co., Ltd.95,492Total21,493,614 22,376,728
ANNUAL REPORT2023
6. Unsettled items such as receivables and payables of related parties
(1). Receivables
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemRelated parties
Balance as at December 31,
2023
Balance as at December 31,
2022Book balance
Provision forbad debt
Book balance
Provision forbad debtAccounts receivableCCCC Haifeng Wind Power Development Co., Ltd.529,999,000243,735,000Accounts receivableJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.487,062,623119,803,239Accounts receivableCCCC Third Harbor Engineering Co., Ltd.266,507,857211,646,105Accounts receivableChina Harbour Engineering Co., Ltd.159,505,07293,246,900Accounts receivableCCCC First Harbor Engineering Co., Ltd.101,615,705192,888,613Accounts receivableChina Road & Bridge Corporation70,398,866138,480,715Accounts receivableCCCC Second Harbor Engineering Co., Ltd.49,640,03347,380,307Accounts receivableCCCC Electrical and Mechanical Engineering Co., Ltd.39,111,65786,806,696Accounts receivableCCCC International (Hong Kong) Holdings Limited37,104,445Accounts receivable
Xiangtan CCCC Infrastructure Investment and ConstructionCo., Ltd.
36,599,73336,599,733Accounts receivableChina Communications Construction Company Ltd.21,653,92220,714,844Accounts receivableCCCC Tianjin Dredging Co., Ltd.21,150,7798,160,365Accounts receivable
ZOSG-OTL Marine Contractor Limited (formerly known as:
ZPMC-OTL Marine Contractor Limited)
17,815,99624,248,168Accounts receivableCCCC First Highway Engineering Co., Ltd.17,616,4423,110,301Accounts receivableFriede & Goldman, Llc.17,272,06816,293,389Accounts receivableCCCC Second Highway Engineering Co., Ltd.16,876,8265,546,487Accounts receivable
No.1 Engineering Co., Ltd. of CCCC First Harbor EngineeringCo., Ltd.
16,705,90364,841,100Accounts receivableZPMC Southeast Asia Pte. Ltd16,454,86413,486,165Accounts receivableCCCC Financial Leasing Co., Ltd.16,011,55516,865,821Accounts receivableCCCC - SHEC Fourth Highway Engineering Co., Ltd.13,833,45713,833,457Accounts receivableCCCC Fourth Harbor Engineering Co., Ltd.13,637,73526,986,726Accounts receivableZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi12,900,68011,282,084Accounts receivableCCCC Third Highway Engineering Co., Ltd.10,390,3371,128,632Accounts receivableCCCC Fourth Harbor Consultants Co., Ltd.7,398,0007,398,000Accounts receivableCCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.6,825,89413,805,933Accounts receivableZhejiang Lvzhou Photovoltaic Technology Co., Ltd.6,566,117Accounts receivableJiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd.6,405,72814,446,169Accounts receivableRoad & Bridge International Co., Ltd.4,143,7511,143,748Accounts receivable
No.3 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
4,082,2147,282,296Accounts receivable
No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
3,939,4006,137,565Accounts receivableCCCC First Harbor Consultants Co., Ltd.3,723,71520,307,006Accounts receivableChongqing Zhongwan Expressway Co., Ltd.2,509,9321,679,281Accounts receivableCCCC Tianjin Dredging Co., Ltd.2,476,63382,800Accounts receivableCCCC Third Harbor Consultants Co., Ltd.2,038,9562,007,459Accounts receivable
No. 6 Engineering Co., Ltd. of CCCC First Highway EngineeringCo., Ltd.
2,000,0003,032,564Accounts receivable
CCCC Water Transportation Planning and Design Institute Co.,Ltd.
1,800,000Accounts receivableShanghai Jiangtian Industrial Co., Ltd.768,3322,014,799
Section X Financial Report
ItemRelated parties
Balance as at December 31,
2023
Balance as at December 31,
2022Book balance
Provision for
bad debt
Book balance
Provision for
bad debtAccounts receivableBeijing Rate Electronic Technology Developing Co., Ltd.741,517891,517Accounts receivable
Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
690,188213,349Accounts receivableZPMC Changzhou Coatings Co., Ltd.637,550Accounts receivable
Road and Bridge Construction Chongqing FengshiExpressway Development Co., Ltd.
435,235601,676Accounts receivable
No.2 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
417,150417,150Accounts receivable
Road and Bridge Construction Chongqing Fengfu ExpresswayDevelopment Co., Ltd.
366,0442,335,010Accounts receivableCCCC-SHEC First Highway Engineering Co., Ltd.347,248Accounts receivableCCCG300,000300,000Accounts receivableCCCC Shanghai Equipment Engineering Co., Ltd.207,000168,000Accounts receivableCCCC Construction Group Co., Ltd.164,03182,015Accounts receivableCCCC Photovoltaic Technology Co., Ltd.136,467Accounts receivableYueyang Chenglingji New Port Co., Ltd.48,68048,680Accounts receivable
SanYa Phoenix Island International Cruise TerminalDevelopment Co., Ltd.
33,74033,740Accounts receivableCCCC First Highway Electrication Engineering Co., Ltd.26,40726,407Accounts receivableCCCC-SHEC Railway Engineering Co., Ltd.25,688656,275Accounts receivableCCCC - SHEC Railway Construction Co., Ltd.23,98023,980Accounts receivableZhenhua Marine Energy (HK) Co., Ltd.17,872,453Accounts receivableCCCC Tianjin Industry and Trade Co., Ltd.13,863,129Accounts receivableCCCC-SHEC Fifth Highway Engineering Co., Ltd.5,031,955Accounts receivable
The First Construction Company of CCCC Second HarborEngineering Co., Ltd.
3,750,000Accounts receivableCCCC - SHEC Second Highway Engineering Co., Ltd.2,479,578Accounts receivableSichuan Road & Bridge Group Co., Ltd.2,156,724Accounts receivableShanghai Interlink Road & Bridge Engineering Co., Ltd.670,488Accounts receivableCCCC Chenzhou Road Construction Machinery Co., Ltd.531,658Accounts receivable
No.2 Engineering Co., Ltd. of CCCC First Harbor EngineeringCo., Ltd.
200,000Accounts receivableCCCC Guidu Highway Construction Co., Ltd.63,951Accounts receivable
Chongqing Yongjiang Expressway Investment andConstruction Co., Ltd. of FHEC of CCCC
36,257Accounts receivableZPMC ISTANBUL LIMAN MAKINALARI Tic A.S.3,482Receivables nancingCCCC Second Harbor Engineering Co., Ltd.114,920,000Receivables nancingCCCC Third Harbor Engineering Co., Ltd.66,286,05252,661,823Receivables nancingCCCC Third Highway Engineering Co., Ltd.21,321,96338,000,000Receivables nancingCCCC Second Highway Engineering Co., Ltd.20,179,42834,367,325Receivables nancingCCCC Electrical and Mechanical Engineering Co., Ltd.12,200,000Receivables nancingRoad & Bridge International Co., Ltd.11,474,94922,230,347Receivables nancingCCCC First Harbor Engineering Co., Ltd.9,254,85051,766,155Receivables nancing
Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
2,000,00063,000Receivables nancingCCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.1,432,619Receivables nancingCCCC Tianjin Dredging Co., Ltd.1,150,000Receivables nancingCCCC Third Harbor Consultants Co., Ltd.300,000Receivables nancing
No.1 Engineering Co., Ltd. of CCCC First Harbor EngineeringCo., Ltd.
10,537,271
ANNUAL REPORT2023
ItemRelated parties
Balance as at December 31,
2023
Balance as at December 31,
2022Book balance
Provision forbad debt
Book balance
Provision forbad debt
Receivables nancingCCCC Tianjin Industry and Trade Co., Ltd.3,498,829Receivables nancingCCCC First Highway Electrication Engineering Co., Ltd.300,000Receivables nancingCCCC-SHEC Railway Engineering Co., Ltd.202,412Other receivablesZhenhua Marine Energy (HK) Co., Ltd.164,124,678164,124,678164,124,678164,124,678Other receivablesCCCC Third Harbor Engineering Co., Ltd.52,107,49834,863,137Other receivablesCCCC Second Harbor Engineering Co., Ltd.37,375,69426,080,121Other receivablesChina Road & Bridge Corporation29,228,91932,174,052Other receivablesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.20,513,15725,033,390Other receivablesCCCC First Highway Engineering Co., Ltd.14,984,890Other receivablesCCCC Third Highway Engineering Co., Ltd.13,346,53711,671,593Other receivablesRoad & Bridge International Co., Ltd.10,311,35410,311,354Other receivablesCCCC First Harbor Engineering Co., Ltd.8,548,93140,331,081Other receivablesCCCC Xiongan Financial Leasing Co., Ltd.6,000,0006,000,000Other receivablesChina Communications Construction Company Ltd.4,907,9343,782,930Other receivablesCCCC Asset Management Co., Ltd.3,832,500Other receivablesCCCC Second Highway Engineering Co., Ltd.2,246,0381,611,506Other receivables
No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
2,116,0912,116,091Other receivablesCCCC Yancheng Construction Development Co., Ltd.1,739,4741,600,000Other receivablesCCCG1,356,8001,356,800Other receivablesCCCC Fourth Harbor Consultants Co., Ltd.992,576992,576Other receivablesCCCC Xiongan Urban Construction Development Co., Ltd.618,022550,000Other receivablesCCCC First Harbor Consultants Co., Ltd.543,7642,602,610Other receivablesCCCC Shanghai Dredging Co., Ltd.219,010Other receivables
Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
200,000Other receivablesCCCC East China Investment Co., Ltd.194,959194,959Other receivablesChina Harbour Engineering Co., Ltd.175,352138,462Other receivablesCCCC Northeast Investment Co., Ltd.152,002152,002Other receivablesShanghai Jiangtian Industrial Co., Ltd.77,55277,552Other receivablesCCCC-SHEC First Highway Engineering Co., Ltd.50,000Other receivables
ZOSG-OTL Marine Contractor Limited (formerly known as:
ZPMC-OTL Marine Contractor Limited)
44,53649,038Other receivablesZPMC Southeast Asia Pte. Ltd11,15915,165Other receivablesZPMC Changzhou Coatings Co., Ltd.1,873Other receivables
Jiujiang Education Consulting Co., Ltd. of CCCC SecondHarbor Engineering Co., Ltd.
1,8001,800Other receivables
CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
12,167,079Other receivablesCCCC Electrical and Mechanical Engineering Co., Ltd.11,230,777Other receivablesCCCC Fourth Harbor Engineering Co., Ltd.3,117,699Other receivablesCCCC - SHEC Second Highway Engineering Co., Ltd.1,623,738Other receivables
No.2 Engineering Co., Ltd. of CCCC Third Harbor EngineeringCo., Ltd.
1,327,942Other receivablesCCCC Financial Leasing Co., Ltd.206,389Other receivablesZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi178,642Advances to suppliers
No.2 Engineering Co., Ltd. of CCCC Third Harbor EngineeringCo., Ltd.
62,227,167Advances to suppliersRoad & Bridge East China Engineering Co., Ltd.43,384,66524,847,917
Section X Financial ReportItemRelated parties
Balance as at December 31,
2023
Balance as at December 31,
2022Book balance
Provision forbad debt
Book balance
Provision forbad debt
Advances to suppliersCCCC Shanghai Equipment Engineering Co., Ltd.22,468,345Advances to suppliers
CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
16,280,427Advances to suppliersFirst Highway Engineering Group Co., Ltd.3,495,244Advances to suppliersCCCC Third Highway Engineering Co., Ltd.2,000,000Advances to suppliers
Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
1,447,632Advances to suppliersCCCC Second Highway Consultants Co., Ltd.850,000Advances to suppliersCCCC Third Harbor Engineering Co., Ltd.703,769Advances to suppliersCCCC Third Harbor Consultants Co., Ltd.444,00010,651,759Advances to suppliersCCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.385,568385,568Advances to suppliersCCCC Xiongan Financial Leasing Co., Ltd.30,000Advances to suppliersCCCC Ocean Investment Holding Co., Ltd. (Consolidated)15,200Advances to suppliersCCCC Dredging (Group) Co., Ltd.7,000Advances to suppliersCCCC Industrial Investment Holding Company Ltd.4,000Advances to suppliersCCCC Third Harbor Engineering Co., Ltd. Xiamen Branch2,0002,000Advances to suppliersCCCC Second Harbor Engineering Co., Ltd.800600Advances to suppliersCCCC Second Highway Engineering Co., Ltd.500Advances to suppliersCCCC First Highway Engineering Co., Ltd.16,625,967Advances to suppliers
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC FourthHarbor Engineering Co., Ltd.
7,000,000Advances to suppliersCCCC Fourth Harbor Consultants Co., Ltd.4,095,000Advances to suppliersChina Harbour Engineering Co., Ltd.5,000Contract assetsCCCC Second Harbor Engineering Co., Ltd.56,867,36330,082,851Contract assetsCCCC First Harbor Engineering Co., Ltd.30,267,91862,352,928Contract assetsChina Harbour Engineering Co., Ltd.19,376,142Contract assetsCCCC Third Harbor Engineering Co., Ltd.12,017,5533,004,388Contract assetsJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.9,532,053605,354,047Contract assets
CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
6,075,449Contract assetsChina Road & Bridge Corporation4,352,72222,477,343Contract assetsCCCC Fourth Harbor Engineering Co., Ltd.2,252,212Contract assetsCCCC Second Highway Engineering Co., Ltd.1,287,58921,831,279Contract assetsCCCC Yancheng Construction Development Co., Ltd.315,887Contract assetsCCCC Haifeng Wind Power Development Co., Ltd.48,181,663Contract assetsCCCC Third Highway Engineering Co., Ltd.15,018,912Contract assets
No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
9,311,494Contract assetsCCCC - SHEC Second Highway Engineering Co., Ltd.4,497,454Contract assetsSichuan Road & Bridge Group Co., Ltd.2,297,016Other non-currentassets
China Harbour Engineering Co., Ltd.76,599,40116,115,040Other non-currentassets
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.8,472,784Other non-currentassets
No.4 Engineering Co., Ltd. of CCCC Second Harbor
Engineering Co., Ltd.
4,654,092Other non-currentassets
CCCC Fourth Harbor Engineering Co., Ltd.2,252,212
ANNUAL REPORT2023
(2). Payables
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItemRelated parties
Ending bookbalance
Beginning bookbalanceAccounts payableCCCC Third Highway Engineering Co., Ltd.538,682,121250,106,814Accounts payableCCCC Third Harbor Engineering Co., Ltd.312,621,861331,634,582Accounts payableCCCC Second Harbor Engineering Co., Ltd.153,189,33274,160,316Accounts payableCCCC Construction Group Co., Ltd.98,897,141101,897,141Accounts payableCCCC First Highway Engineering Co., Ltd.61,474,291259,160,857Accounts payableCCCC Tianjin Dredging Co., Ltd.60,039,09633,225,252Accounts payableZPMC Changzhou Coatings Co., Ltd.50,049,65743,778,590Accounts payableJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.41,798,360450,000Accounts payableCCCC Shanghai Equipment Engineering Co., Ltd.38,790,36283,614,468Accounts payableFirst Highway Engineering Group Co., Ltd.37,134,294-Accounts payableCCCC Capital Holdings Co., Ltd.37,062,693-Accounts payableNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.34,087,11316,878,682Accounts payableRoad & Bridge East China Engineering Co., Ltd.22,984,93122,984,931Accounts payableZPMC Southeast Asia Pte. Ltd18,262,85816,657,949Accounts payableCNPC & CCCC Petroleum Sales Co., Ltd.17,414,76518,903,424Accounts payableCCCC Second Highway Consultants Co., Ltd.12,853,27520,038,332Accounts payableCCCC Water Transportation Planning and Design Institute Co., Ltd.12,388,1495,907,891Accounts payableShanghai Communications Construction Contracting Co., Ltd.12,342,97421,494,837Accounts payableCCCC Shanghai Dredging Co., Ltd.12,221,71320,295,398Accounts payableNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.8,581,2508,581,250Accounts payableNo.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.7,815,0187,815,018Accounts payableChina Road & Bridge Corporation7,101,342-Accounts payableCCCC Fourth Harbor Consultants Co., Ltd.4,100,000-Accounts payableChina Communications Information Technology Group Co., Ltd.4,099,840-Accounts payableCCCC Third Harbor Consultants Co., Ltd.2,318,868-Accounts payableCCCC First Harbor Engineering Co., Ltd.2,298,6066,498,606Accounts payableCCCC (Xiamen) Information Co., Ltd2,252,376-Accounts payableCCCC Shanghai Channel Equipment Industry Co., Ltd.1,500,166594,418Accounts payableCCCC Photovoltaic Technology Co., Ltd.1,265,147-Accounts payableShanghai Jiangtian Industrial Co., Ltd.846,3734,419,111Accounts payableCCCC Urban Operation Management Co., Ltd.515,191-Accounts payableChongqing Yongjiang Expressway Investment and Construction Co., Ltd. of FHEC of CCCC323,990323,990Accounts payableCCCC First Harbor Consultants Co., Ltd.302,0417,631,212Accounts payableChuwa Bussan Co., Ltd.258,445-Accounts payableXiamen Jiehang Engineering Testing Technology Co., Ltd.256,536256,536Accounts payableZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi201,47911,691Accounts payableCCCC Second Highway Engineering Co., Ltd.121,494121,494Accounts payableCCCC Xingyu Technology Co., Ltd80,500-Accounts payableFriede & Goldman, Llc.69,331-Accounts payableJiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.40,00014,280,000Accounts payableInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.33,84933,849Accounts payableShanghai Zhensha Longfu Machinery Co., Ltd.6,751,252Accounts payable
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.,Ltd.
3,962,714Accounts payableZhenhua (Singapore) Engineering Co., Ltd.9,774Notes payableCCCC Shanghai Equipment Engineering Co., Ltd.94,321,451 106,040,000
Section X Financial Report
ItemRelated parties
Ending book
balance
Beginning book
balanceNotes payableZPMC Changzhou Coatings Co., Ltd.25,611,390 12,215,422Notes payableCCCC Third Harbor Consultants Co., Ltd.444,000Contract liabilitiesCCCC Third Harbor Engineering Co., Ltd.434,880,751197,449,765Contract liabilitiesCCCC Electrical and Mechanical Engineering Co., Ltd.261,521,126-Contract liabilities
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.,Ltd.
227,465,345-Contract liabilitiesChina Harbour Engineering Co., Ltd.201,398,97192,144,941Contract liabilitiesCCCC Haifeng Wind Power Development Co., Ltd.119,118,961-Contract liabilitiesRoad & Bridge International Co., Ltd.112,630,07480,598,342Contract liabilitiesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.84,539,773125,675,111Contract liabilitiesChina Road & Bridge Corporation36,136,02528,615,217Contract liabilitiesCCCC Yancheng Construction Development Co., Ltd.13,987,03919,370,518Contract liabilitiesCCCC Second Harbor Engineering Co., Ltd.11,504,425-Contract liabilitiesZhenhua Engineering Co., Ltd.11,480,88611,480,886Contract liabilitiesCCCC First Harbor Engineering Co., Ltd.7,079,64618,506,940Contract liabilitiesJiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd.2,600,000-Contract liabilitiesCCCC-SHEC Fifth Highway Engineering Co., Ltd.2,326,834-Contract liabilitiesInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.476,839-Contract liabilitiesChina Communications Construction Company Ltd.399,000644,250Contract liabilitiesCCCC Financial Leasing Co., Ltd.389,878-Contract liabilitiesZPMC Changzhou Coatings Co., Ltd.307,315-Contract liabilitiesZPMC Southeast Asia Pte. Ltd299,053336,651Contract liabilitiesXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.200,000200,000Contract liabilitiesCCCC Shanghai Equipment Engineering Co., Ltd.100,000100,000Contract liabilitiesNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.170,288,676Contract liabilitiesCCCC Third Highway Engineering Co., Ltd.15,160,936Contract liabilitiesCCCC-SHEC First Highway Engineering Co., Ltd.10,757,478Contract liabilitiesNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.3,000,000Contract liabilitiesCCCC Tianjin Dredging Co., Ltd.1,190,280Contract liabilitiesCCCC Tianjin Industry and Trade Co., Ltd.1,158,633Contract liabilitiesCCCC Second Highway Engineering Co., Ltd.516,117Contract liabilitiesNo.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.248,624Contract liabilitiesFriede & Goldman, Llc.67,174Contract liabilitiesChina Highway Vehicle & Machinery Co., Ltd.200Other payablesCCCC Tianjin Dredging Co., Ltd.2,156,17051,129Other payablesZhenhua Marine Energy (HK) Co., Ltd.2,047,861-Other payablesCCCG1,600,5441,599,944Other payablesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.1,001,393-Other payablesCCCC Electrical and Mechanical Engineering Co., Ltd.665,174-Other payablesNo.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.657,337657,337Other payablesCCCC Dredging (Group) Co., Ltd.582,9662,000,000Other payablesCCCC Third Highway Engineering Co., Ltd.554,719743,216Other payablesCCCC Construction Group Co., Ltd.506,519-Other payablesZPMC Changzhou Coatings Co., Ltd.497,60057,600Other payablesCCCC Xiongan Urban Construction Development Co., Ltd.330,000-Other payablesRoad & Bridge International Co., Ltd.224,5741,600,000Other payablesCCCC Urban Operation Management Co., Ltd.202,626-Other payablesChina Communications Construction Company Ltd.194,979-Other payablesShanghai Jiangtian Industrial Co., Ltd.150,0005,571,886
ANNUAL REPORT2023
ItemRelated parties
Ending book
balance
Beginning bookbalance
Other payablesCCCC Shanghai Equipment Engineering Co., Ltd.100,000107,000Other payablesHarbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.85,68511,434Other payablesShanghai China Communications Water Transportation Design & Research Co., Ltd.81,00015,200Other payablesXiamen Jiehang Engineering Testing Technology Co., Ltd.64,23764,237Other payablesCCCC Third Harbor Consultants Co., Ltd.55,600-Other payablesTianjin Harbour Engineering Quality Inspection Center Co., Ltd.49,00049,000Other payablesCCCC Xingyu Technology Co., Ltd8,000-Other payablesCCCC Third Harbor Engineering Co., Ltd.3,35051,664Other payablesCCCC Water Transportation Planning and Design Institute Co., Ltd.3,000-Other payablesCCCC Shanghai Channel Equipment Industry Co., Ltd.2,000-Other payables
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.,Ltd.
100100Other payablesNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.1,327,942Other payablesCCCC (Zhengzhou) Construction Co., Ltd.600,000Other payablesCCCC Second Highway Engineering Co., Ltd.200,000Other payablesShanghai Zhensha Longfu Machinery Co., Ltd.170,000Other payablesCCCC Leasing (Shandong) Co., Ltd.20,000Other payablesDaHua Technology Co., Ltd.10,000Short-termborrowings
CCCC Xiongan Financial Leasing Co., Ltd.110,000,00020,000,000Short-termborrowings
CCCC Finance Company Ltd.48,869,847Non-current liabilitiesdue within one year
CCCC Finance Company Ltd.100,061,111Non-current liabilitiesdue within one year
CCCC Xiongan Financial Leasing Co., Ltd.117,003,704Long-term payablesCCCC Dredging (Group) Co., Ltd.262,957,217-Long-term payablesCCCC Second Harbor Engineering Co., Ltd.84,569,030137,123,967Long-term payablesCCCC Construction Group Co., Ltd.39,558,52639,558,526Long-term payablesCCCC Third Harbor Engineering Co., Ltd.37,952,71534,665,923Long-term payablesNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.9,520,8859,520,885Long-term payablesFirst Highway Engineering Group Co., Ltd.2,547,110-Long-term payablesCCCC Second Highway Engineering Co., Ltd.125,862-Long-term payablesCCCC Tianjin Dredging Co., Ltd.243,811,149Long-term payablesCCCC Xiongan Financial Leasing Co., Ltd.33,555,556Long-term payablesCCCC - SHEC Second Highway Engineering Co., Ltd.125,862Long-term borrowingsCCCC Finance Company Ltd.544,332,445644,393,556Long-term borrowingsCCCC Xiongan Financial Leasing Co., Ltd.25,168,519
(3). Other projects
?Applicable√ Not Applicable
7. Commitments with related parties
√Applicable? Not ApplicableRendering of services for the Group by related parties
20232022CCCC Third Highway Engineering Co., Ltd.1,151,555,816-CCCC Third Harbor Engineering Co., Ltd.617,870,543761,097,020CCCC First Highway Fifth Engineering Co., Ltd.388,366,210388,366,210
Section X Financial Report20232022No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.305,931,400305,931,400CCCC Tianjin Dredging Co., Ltd.283,930,853393,318,809No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.56,568,99656,568,996CCCC First Highway Engineering Co., Ltd.35,569,533185,310,227Shanghai Communications Construction Contracting Co., Ltd.2,631,3132,631,313CCCC Tunnel Engineering Company Limited158,070158,070Total2,842,582,7342,093,382,045Sale of products, provision of labor or leasing services to related parties
20232022CCCC Second Harbor Engineering Co., Ltd.1,302,245,342-CCCC Electrical and Mechanical Engineering Co., Ltd.800,640,000-China Harbour Engineering Co., Ltd.486,696,28655,177,980CCCC Haifeng Wind Power Development Co., Ltd.434,985,212942,273,538Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.257,943,78225,950,000CCCC Third Highway Engineering Co., Ltd.249,164,992-CCCC Third Harbor Engineering Co., Ltd.226,800,000145,655,357CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
211,612,759528,800,000China Road & Bridge Corporation17,551,51034,957,678Road & Bridge International Co., Ltd.-241,720,000CCCC First Harbor Engineering Co., Ltd.-224,844,126CCCC Second Highway Engineering Co., Ltd.-154,280,200CCCC-SHEC First Highway Engineering Co., Ltd.-36,000,000No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.-27,783,186CCCC Fourth Harbor Engineering Co., Ltd.-5,855,752China Communications Construction Company Ltd.-3,681,416Total3,987,639,8832,426,979,233
8. Others
√Applicable? Not ApplicableMonetary funds deposited in the related parties
20232022
CCCC Finance Company Ltd.1,600,000,000435,568
XV. Share-based payment
1. Various equity instruments
?Applicable√ Not ApplicableStock options or other equity instruments outstanding at the end of the period?Applicable√ Not Applicable
2. Equity-settled share-based payments
?Applicable√ Not Applicable
3. Cash-settled share-based payments
?Applicable√ Not Applicable
ANNUAL REPORT2023
4. Share payment expenses for the current period
?Applicable√ Not Applicable
5. Modication and termination of share-based payment
?Applicable√ Not Applicable
6. Others
?Applicable√ Not ApplicableXVI. Commitments and contingencies
1. Signicant commitments
√Applicable? Not ApplicableSignicant external commitments, nature and amount on the balance sheet dateMatters related to capital expenditure commitmentsCommitments related to capital expenditure contracted for but not provided in the nancial statements as at the balancesheet date:
20232022
Buildings and constructions, machinery equipment589,701,542569,759,423L/C commitmentsThe Group had entrusted the bank to issue several L/Cs to purchase imported components and parts. As at December 31,2023, the unpaid amount under the L/Cs was about RMB 3,465,483,822 (as at December 31, 2022: RMB 2,201,297,673).
2. Contingencies
(1). Signicant contingencies on the balance sheet date
?Applicable√ Not Applicable
(2). If the company has no signicant contingencies to be disclosed, it shall also explain:
?Applicable√ Not Applicable
3. Others
?Applicable√ Not Applicable
XVII. Post balance sheet events
1. Signicant non-adjustment events
?Applicable√ Not Applicable
2. Prot distribution
?Applicable√ Not Applicable
3. Sales return
√Applicable? Not ApplicableNone
Section X Financial Report
4. Description of other post balance sheet events
?Applicable√ Not Applicable
XVIII. Other signicant events
1. Correction of previous accounting errors
(1). Retrospective restatement
?Applicable√ Not Applicable
(2). Prospective application
?Applicable√ Not Applicable
2. Important debt restructuring
?Applicable√ Not Applicable
3. Assets exchange
(1). Non-monetary assets exchange
?Applicable√ Not Applicable
(2).Other assets exchange
?Applicable√ Not Applicable
4. Pension plan
?Applicable√ Not Applicable
5. Discontinuing operations
?Applicable√ Not Applicable
6. Segments
(1). Determination basis and accounting policies of reporting segment
√Applicable? Not ApplicableThe Group determines operating segments based on internal organization structure, management requirements andinternal reporting system, determines reporting segments based on operating segments, and disclose the information ofthe segments.Operating segment refers to the component part of the Group that meet the following requirements: (1) it can generateincome and expenses in daily activities; (2) the management of the Group can regularly evaluate its operating resultsto determine its allocation of resources and to evaluate its performance; (3) the Group is able to obtain its accountinginformation regarding nancial position, operating results and cash ows, etc. If two or more operating segments havesimilar economic characteristics, and have met a certain condition, they will be merged into one operating segment.The Group identied the business as an operating segment for analysis and assessment based on internal organizationstructure, management requirement and internal report system.
(2). Financial information of reporting segment
?Applicable√ Not Applicable
ANNUAL REPORT2023
(3). If the Company has no reporting segments or cannot disclose the total assets and liabilities of each reporting
segment, the reasons shall be stated?Applicable√ Not Applicable
(4). Other description
√Applicable? Not ApplicableProduct and labor informationIncome from external transactions
20232022Port machinery21,236,864,18220,731,800,489Heavy equipment5,422,715,0543,085,509,098Steel structure and related income3,166,048,5202,731,132,322Engineering construction projects1,528,578,2181,613,996,721Shipping and lifting services1,209,116,0501,719,708,160Lease income296,335,872225,960,519Sales of materials and others73,605,90683,685,678Total32,933,263,80230,191,792,987Geographic informationIncome from external transactions
20232022Chinese Mainland18,521,970,12716,017,286,405Asia (excluding Chinese Mainland)6,029,644,6817,867,109,144North America2,386,479,1182,181,504,594Africa2,032,771,3141,368,578,664Europe1,096,740,543877,042,956South America1,183,625,912600,144,518Chinese Mainland (export sales)964,530,587968,104,389Oceania717,501,520312,022,317Total32,933,263,80230,191,792,987The income from external transaction is attributable to where the customer is located.Total non-current assets
20232022
Chinese Mainland19,018,972,29119,253,173,359Asia (excluding Chinese Mainland)10,697,184,42710,140,996,412Others30,226,859111,020,668Total29,746,383,57729,505,190,439The non-current assets are attributable to where they are located, excluding nancial assets, long-term equity investment,goodwill, deferred income tax assets and other non-current assets.
7. Other signicant transactions and events with impacts on investors' decisions
√Applicable? Not Applicable
Section X Financial Report
Lease
(1). As a lessor
20232022Interest expense of lease liabilities1,313,980615,840Short-term lease expenses with simplified treatmentincluded in the current prot or loss
217,888,742104,487,307Total cash outows related to leases259,695,514122,403,881Cash outow from leaseback249,669,758242,328,806The leased assets leased by the Group include buildings and constructions, machinery and equipment, transportationequipment and other equipment used in the course of operations, and the lease term is usually 1-3 years. The leasecontract usually stipulates that the Group cannot sublet the leased assets. A few lease contracts include the option ofrenewal.LeasebackThe Group usually enters into leaseback transactions for the purchase price of large ships or equipment, where thetransfer of the assets is not a sale. The Group continues to recognize the transferred assets together with a financialliability equal to the transfer income. The Group takes such leaseback transactions as mortgage loans for accountingtreatment. The Group makes annual leaseback nancing payments to the nance leasing company in accordance withthe terms of the contract.Other lease informationRight-of-use assets are detailed in Note VII (25). The simplied treatment of short-term lease and low-value assets lease isdetailed in Note V (34). The lease liabilities are detailed in Note VII (47).
(2). As a lessor
Operating leaseThe prot or loss related to operating leases is presented as follows:
20232022Lease income296,335,872225,960,519
According to the lease agreement signed with the lessee, the undiscounted minimum lease receipts are as follows:
20232022Within 1 year (including 1 year)291,022,650239,242,9411 to 2 years (including 2 years)222,198,493132,035,5132-3 years (including 3 years)113,076,26842,528,1013 to 4 years (including 4 years)105,432,42219,751,0714 to 5 years (including 5 years)55,144,11785,516,755Over 5 years54,066,921828,273Total840,940,871519,902,654
8. Others
?Applicable√ Not Applicable
ANNUAL REPORT2023XIX. Notes to main items of the nancial statements of the parent company
1. Accounts receivable
(1). Disclosure by aging
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
AgingEnding book balanceBegining book balanceWithin 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year17,506,406,56415,808,520,8821-2 years1,298,787,513580,444,1642-3 years524,496,5291,854,369,394Over 3 years3-4 years873,709,763666,023,6114-5 years619,231,49883,902,642Over 5 years1,195,350,5631,126,924,513Total22,017,982,43020,120,185,206
(2). Disclosure by bad debt calculation method
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Category
December 31, 2023December 31, 2022Book balanceProvision for bad debts
Book value
Book balanceProvision for bad debts
Book valueAmount
Proportion
(%)
Amount
Proportion
ofprovision
(%)
Amount
Proportion
(%)
Amount
Proportion
ofprovision
(%)
Provision forbad debtsaccrued onan individualbasis
908,640,2304837,390,8999271,249,331896,540,1364825,285,3909271,254,746Including:
Provision forbad debts byportfolio
21,109,342,200961,494,832,380719,614,509,82019,223,645,070961,280,658,766717,942,986,304Including:
Total22,017,982,430/2,332,223,279/19,685,759,15120,120,185,206/2,105,944,156/18,014,241,050
Individual provision for bad debts:
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Name
December 31, 2023Book balanceProvision for bad debtsProportion of provision (%)Reason for provisionAccounts receivable 1474,995,540403,746,20985Counterparty nancial shortageDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
Section X Financial Report
Provision for bad debts is calculated based on the general model of expected credit loss?Applicable√ Not ApplicableBasis for division of each stage and proportion of provision for bad debtNoneExplanation of signicant changes in the book balance of accounts receivable with changes in provisions for losses in thecurrent period:
?Applicable√ Not Applicable
(3). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not ApplicableOther descriptionNone
(4). Accounts receivable actually written o in the current period
?Applicable√ Not ApplicableWrite-o of important accounts receivable?Applicable√ Not ApplicableExplanation of write-o of accounts receivable:
?Applicable√ Not Applicable
(5). Top 5 accounts receivable and contract assets in terms of ending balance presented by debtor
√Applicable? Not Applicable
Unit: Yuan Currency: CNYName
Balance of accountsreceivable at the endof the period
Ending balance ofcontract assets
Ending balance ofaccounts receivable and
contract assets
Proportion in total endingbalance of accounts receivable
and contract assets (%)
Balance of provision forbad debts as at December
31, 2023
Client 18,351,833,5008,351,833,50033Client 23,035,336,4313,035,336,43112Client 31,152,012,7731,152,012,7735Client 4890,511,351890,511,3514Client 5772,025,403772,025,4033Total14,201,719,45814,201,719,45857
Other descriptionNoneOther description√Applicable? Not ApplicableAmount of assets and liabilities formed by transferring accounts receivable and continuing involvement
20232022Book balance ofestimated default
Estimated creditloss ratio (%)
Expected credit loss forthe entire duration
Book balance ofestimated default
Estimated creditloss ratio (%)
Expected creditloss for the entiredurationWithin 1 year17,461,085,304190,249,44515,806,393,464188,542,6071-2 years1,298,747,01311142,435,627580,444,1641479,426,7232-3 years524,496,52931165,173,7401,744,608,25627464,722,489
ANNUAL REPORT2023
20232022Book balance ofestimated default
Estimated credit
loss ratio (%)
Expected credit loss for
the entire duration
Book balance ofestimated default
Estimated creditloss ratio (%)
Expected creditloss for the entire
duration3-4 years763,948,62552399,145,777223,238,6653885,019,6384-5 years215,541,55149105,860,59469,671,8425840,507,107Over 5 years845,523,17870591,967,197799,288,67965522,440,202Total21,109,342,2001,494,832,38019,223,645,0701,280,658,766Changes in the provision for bad debts of accounts receivable are as follows:
January 1, 2023Provision in 2023Recovery or reversal in 2023Write-o in 2023December 31, 20232023?2,105,944,156675,787,609(449,508,486)2,332,223,2792022?1,888,796,590677,030,281(425,803,410)(34,079,305)2,105,944,156
2. Other receivables
Item presentation√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2023December 31, 2022Interest receivableDividends receivable315,789,096Other receivables3,373,418,3591,364,774,518Total3,373,418,3591,680,563,614
Other description:
√Applicable? Not ApplicableNoneInterest receivable
(1). Classication of interest receivable
?Applicable√ Not Applicable
(2). Signicant overdue interest
?Applicable√ Not Applicable
(3). Provision for bad debts
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
(4). Provision for bad debts is calculated based on the general model of expected credit loss
?Applicable√ Not ApplicableBasis for division of each stage and proportion of provision for bad debtNone
Section X Financial Report
Explanation of signicant changes in the book balance of interests receivable with changes in provisions for losses in thecurrent period:
?Applicable√ Not Applicable
(5). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not ApplicableOther description:
None
(6). Interests receivable actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of interests receivable?Applicable√ Not ApplicableNote to write-o:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not ApplicableDividends receivable
(7). Dividends receivable
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Project (or invested entity)December 31, 2023December 31, 2022
Nanjing Ninggao New Channel Construction Co., Ltd.315,789,096Total315,789,096
(8). Signicant dividends receivable aging over 1 year
?Applicable√ Not Applicable
(9). Disclosure by bad debt calculation method
?Applicable√ Not ApplicableIndividual provision for bad debts:
?Applicable√ Not ApplicableDescription of individual provision for bad debts:
?Applicable√ Not ApplicableProvision for bad debts by portfolio:
?Applicable√ Not Applicable
(10). Provision for bad debts is calculated based on the general model of expected credit loss
?Applicable√ Not ApplicableBasis for division of each stage and proportion of provision for bad debtNoneExplanation of signicant changes in the book balance of dividends receivable with loss provision changes in the current
ANNUAL REPORT2023
period:
?Applicable√ Not Applicable
(11). Provision for bad debts
?Applicable√ Not ApplicableThe recovered or reversed provision for bad debts with signicant amount:
?Applicable√ Not ApplicableOther description: None
(12). Dividends receivable actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of dividends receivables?Applicable√ Not ApplicableNote to write-o:
?Applicable√ Not ApplicableOther description:
?Applicable√ Not ApplicableOther receivables
(13). Disclosure by aging
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
AgingDecember 31, 2023December 31, 2022Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year3,130,089,9161,337,834,7981-2 years269,083,42841,098,4672-3 years20,451,1646,159,589Over 3 years3-4 years475,9473,740,6054-5 years214,964199,800Over 5 years8,809,6179,610,964Total3,429,125,0361,398,644,223
(14). Classication by nature of funds
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Nature of fundsDecember 31, 2023December 31, 2022
Current accounts between subsidiaries2,513,480,020671,021,717Taxes on outstanding payment receivable748,596,070332,163,971Lease payment receivable48,652,49741,353,252Customs deposits47,542,730267,023,626Bid and performance bonds43,273,00450,292,193Money on call of on-site product service14,199,69721,959,592Sta loan receivable12,300,81113,295,583Others1,080,2071,534,289Total3,429,125,0361,398,644,223
Section X Financial Report
(15). Other receivables
√Applicable? Not Applicable
Unit: Yuan Currency: CNYProvision for bad debt
Stage IStage IIStage III
TotalExpected credit lossesover the next 12 months
Expected credit loss for theentire duration (no credit
impairment)
Expected credit loss forthe entire duration (creditimpairment occurred)Balance as of January 1, 202327,969,6175,900,08833,869,705Balance on January 1, 2023 is in the periodTransferred to Stage IITransferred to Stage IIIWrite-back to Stage IIWrite-back to Stage IProvision in the current period21,836,97221,836,972Reversal in the current periodWrite-o in the current periodCharge-o in the current periodOther changesBalance as of December 31, 202349,806,5895,900,08855,706,677Basis for division of each stage and proportion of provision for bad debtNoneDescription of significant changes in book balance of other receivables with changes in loss provision in the currentperiod:
?Applicable√ Not ApplicableThe amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of nancialinstruments has increased signicantly:
?Applicable√ Not Applicable
(16). Provision for bad debts
?Applicable√ Not ApplicableIncluding the reversed or recovered provision for bad debts with signicant amount in the current period:
?Applicable√ Not ApplicableOther description:
None
(17). Other receivables actually written o in the current period
?Applicable√ Not ApplicableIncluding important notes for write-o of other receivables:
?Applicable√ Not ApplicableExplanation of write-o of other receivables:
?Applicable√ Not Applicable
(18). Top 5 other receivables in terms of ending balance presented by debtor
√Applicable? Not Applicable
ANNUAL REPORT2023
Unit: Yuan Currency: CNYName
December 31,2022
Proportion in thetotal balance of other
receivables (%)
NatureAging
Balance of provisionfor bad debts as atDecember 31, 2022Other receivables 11,743,797,35951Transactions with subsidiariesWithin 1 yearOther receivables 2437,759,56613Taxes to be settledWithin 1 yearOther receivables 3342,193,35110Transactions with subsidiariesWithin 1 yearOther receivables 4160,954,2824Transactions with subsidiariesWithin 1 yearOther receivables 5102,561,6423Transactions with subsidiariesWithin 1 yearTotal2,787,266,20081//
(19). Presented in other receivables due to centralized fund management
?Applicable√ Not ApplicableOther description:
√Applicable? Not Applicable2023
Book balanceProvision for bad debt
Book valueAmountProportion(%)Amount
Accruingproportion (%)
Provision for bad debts accrued on anindividual basis
5,900,0885,900,088100According to the portfolio of the credit riskcharacteristics Bad debt provision
3,423,224,94810049,806,58913,373,418,359Total3,429,125,03610055,706,67723,373,418,3592022
Book balanceProvision for bad debt
Book valueAmountProportion(%)Amount
Accruingproportion (%)Provision for bad debts accrued on anindividual basis
5,900,0885,900,088100According to the portfolio of the credit riskcharacteristics Bad debt provision
1,392,744,13510027,969,61721,364,774,518Total1,398,644,22310033,869,70521,364,774,518
As at December 31, 2023, there were no other significant receivables with provision for bad debts accrued on anindividual basis (2022: nil).As at December 31, 2023, other receivables with provision for bad debts accrued by portfolio are as follows:
Book balanceProvision for impairmentProportion of provision (%)Within 1 year3,130,089,9171 to 2 years269,083,42840,362,515152 to 3 years20,451,1646,135,349303 to 4 years475,947237,974504 to 5 years214,964161,22375Over 5 years2,909,5282,909,528100Total3,423,224,94849,806,589
3. Long-term equity investments
√Applicable? Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Item
December 31, 2023December 31, 2022Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueInvestment in subsidiaries7,518,092,2817,518,092,2817,403,925,0817,403,925,081Investment in joint venturesand associates
1,938,669,1541,938,669,1541,985,654,1631,985,654,163Total9,456,761,4359,456,761,4359,389,579,2449,389,579,244
(1). Investment in subsidiaries
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
Invested entity
December 31,
2022
Increasein currentperiod
Decreasein currentperiod
December 31,2023Provision forimpairmentin currentperiod
Balance ofprovision forimpairment asat December31, 2023Shanghai Zhenhua Heavy Industries Port MachineryGeneral Equipment Co., Ltd.
2,201,086,7442,201,086,744Nanjing Ninggao New Channel Construction Co., Ltd.100,000,000100,000,000Nantong Zhenhua Heavy Equipment Manufacturing Co.,Ltd.
2,500,000,0002,500,000,000ZPMC Transmission Machinery (Nantong) Co., Ltd.506,112,853506,112,853CCCC Zhenjiang Investment Construction ManagementDevelopment Co., Ltd.
376,438,604376,438,604ZPMC Qidong Marine Engineering Co., Ltd.203,000,000203,000,000CCCC Liyang Urban Investment and Construction Co., Ltd.363,000,000363,000,000Shanghai Zhenhua Shipping Co., Ltd.140,260,673140,260,673Shanghai Zhenhua Ocean Engineering Service Co., Ltd.100,000,000100,000,000ZPMC Electric Co., Ltd.50,000,00050,000,000CCCC Investment & Development Qidong Co., Ltd.297,500,000297,500,000ZPMC North America Inc.18,564,52018,564,520ZPMC Netherlands Co?peratie U.A.29,434,96429,434,964Shanghai Zhenhua Port Machinery Heavy Industries Co.,Ltd.
9,964,2009,964,200ZPMC Machinery Equipment Services Co., Ltd.7,000,0007,000,000ZPMC Lanka Company (Private) Limited6,183,9786,183,978ZPMC Middle East Fze5,271,1205,271,120ZPMC Zhangjiagang Port Machinery Co., Ltd.4,518,0004,518,000ZPMC Limited Liability Company10,172,07010,172,070ZPMC Southeast Asia Holding Pte. Ltd.12,513,11412,513,114ZPMC Engineering Africa (Pty) Ltd.3,084,0003,084,000ZPMC Engineering (India) Private Limited2,953,2002,953,200ZPMC Brazil Servi?o Portuários LTD.2,936,7712,936,771ZPMC Korea Co., Ltd.6,398,0596,398,059ZPMC UK LD2,797,9212,797,921ZPMC Australia Company (Pty) Limited2,708,5002,708,500CCCC Rudong Construction Development Co., Ltd.82,510,00082,510,000CCCC Yongjia Construction Development Co., Ltd.224,000,00057,467,200281,467,200CCCC Zhenhua Lvjian Technology (Ningbo) Co., Ltd.4,000,0004,000,000ZPMC Latin America Holding Corporation3,307,8503,307,850ZPMCGmbHHamburg207,940207,940
ANNUAL REPORT2023
Invested entity
December 31,2022
Increasein current
period
Decreasein currentperiod
December 31,2023Provision forimpairmentin current
period
Balance ofprovision forimpairment asat December31, 2023ZPMC Fuzhou Oshore Construction Co., Ltd.10,000,00010,000,000CCCC (Dongming) Investment and Construction Co., Ltd.70,000,00056,700,000126,700,000Xiong’an Zhenhua Co., Ltd.15,000,00015,000,000CCCC Zhenhua Intelligent Parking (Hengyang) Co., Ltd.33,000,00033,000,000Total7,403,925,081114,167,2007,518,092,281
(2). Investment in joint ventures and associates
√Applicable? Not Applicable
Unit: Yuan Currency: CNYInvested entity
December31, 2022
Increase/decrease in the current period
December31, 2023
Balance ofprovision forimpairmentas atDecember31, 2023Furtherinvestment
Reducedinvestment
Prot orloss oninvestmentsunder theequitymethod
Adjustment
of othercomprehensive
income
Changesin otherequity
Cashdividendsor protdeclared
to bedistributed
Provision
forimpairment
Others
Joint venturesJiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd.
364,936,0811,466,212366,402,293ZPMC Mediterranean LimanMakinalari Ticaret AnonimSirketi
396,69275,782472,474Sub-total365,332,7731,541,994366,874,767AssociatesCCCC Financial Leasing Co.,Ltd.
674,329,53372,459,680-816,869-19,561,335-104,370,656622,040,353CCCC Yancheng ConstructionDevelopment Co., Ltd.
418,516,242418,516,242CCCC Estate Yixing Co., Ltd.206,795,4814,862,637211,658,118CCCC South AmericanRegional Company SARL
194,391,003-7,397,705-894,845186,098,453China communicationsConstruction USA Inc.
59,980,865261,190993,30661,235,361CCCC Photovoltaic TechnologyCo., Ltd.
34,819,763873,71335,693,476ZPMC Changzhou CoatingsCo., Ltd.
18,440,1595,843,35424,283,513CCCC Xiongan UrbanConstruction DevelopmentCo., Ltd.
7,540,33332,9367,573,269Shanghai Ocean EngineeringEquipment ManufacturingInnovation Center Co., Ltd.
5,508,011-812,4094,695,602CCCC Marine Engineering &Technology Research CenterCo., Ltd.Sub-total1,620,321,39076,123,396-718,408-19,561,335-104,370,6561,571,794,387Total1,985,654,16377,665,390-718,408-19,561,335-104,370,6561,938,669,154
(3). Impairment test of long-term equity investments
?Applicable√ Not ApplicableOther description:
None
Section X Financial Report
4. Operating revenue and operating costs
(1). Operating revenue and operating costs
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current periodAmount incurred in the previous period
RevenueCostRevenueCostPrimary businesses24,944,448,97322,516,887,87323,815,340,35621,476,119,929Other business3,504,598,8483,307,252,5522,351,859,7842,239,174,472Total28,449,047,82125,824,140,42526,167,200,14023,715,294,401
(2). Breakdown of operating income and operating cost
√Applicable? Not Applicable
Unit: Yuan Currency: CNYClassication of Contract
XXX DivisionTotalOperating revenueOperating costsOperating revenueOperating costsType of goods?????Port machinery?19,433,781,08017,125,659,392?Heavy equipment?3,492,739,6863,484,984,990?Sales of materials and others3,391,954,2823,142,003,257?Steel structure and related income1,941,285,7291,839,770,354?Lease income112,644,566165,249,295?Engineering construction projects76,642,47866,473,137By region of operation????Chinese Mainland?15,498,685,20814,387,696,155?Asia (excluding Chinese Mainland)5,267,710,3644,883,035,106?North America2,129,425,6931,883,039,476?Africa1,976,542,1331,478,646,158?South America1,101,504,9621,014,547,604?Chinese Mainland (export sales)934,840,666852,266,376?Europe832,046,338758,671,548?Oceania708,292,457566,238,002Market or customer type????Contract type????By time of goods transfer?????Transfer at a certain point?23,536,580,61621,847,398,115??Transfer within a certain period?4,912,467,2053,976,742,310By contract term????By sales channel????Total?28,449,047,82125,824,140,425Other description:
?Applicable√ Not Applicable
(3). Performance obligations
?Applicable√ Not Applicable
(4). Apportionment to remaining performance obligations
?Applicable√ Not Applicable
ANNUAL REPORT2023
(5). Major contract changes or major transaction price adjustments
?Applicable√ Not ApplicableOther description:
None
5. Investment income
√Applicable? Not Applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodIncome from long-term equity investments calculated under cost method202,022,509441,136,785Income from long-term equity investment calculated under the equity method77,665,390170,768,840Investment income from disposal of long-term equity investment-95,166Investment income from held-for-trading nancial assets during the holding period4,219,68513,458,094Dividend income from other equity instrument investment during holding335,790335,790Interest income from debt investment during holdingInterest income from other debt investment during holdingInvestment income from disposal of held-for-trading nancial assets34,445,2785,843Investment income from disposal of other equity instrument investmentInvestment income from disposal of debt investmentInvestment income from disposal of other debt investmentIncome from debt restructuringLosses on derecognition of nancial assets measured at amortized cost-115,312,416-20,135,378Others-11,565,673-1,455,319Total191,810,563604,019,489Other description:
None
6. Others
?Applicable√ Not Applicable
XX. Supplementary information
1. Items of non-recurring prot or loss in current period
√Applicable? Not Applicable
Unit: Yuan Currency: CNY
ItemAmountRemarks
Prot or loss from disposal of non-current assets, including the write-o portion of the provision of assetimpairment
79,038,662?Government subsidies included in current profits and losses except for government subsidies closelyrelated to the normal operations of the Company, in line with national policies, and obtained according todetermined standards, with a lasting impact on the Company’s prots and losses
107,480,822?Profit or loss from changes in fair value of financial assets and financial liabilities held by non-financialenterprises and from disposal of financial assets and financial liabilities, except for effective hedgingoperations associated with the Company’s normal operations
94,482,602?Capital occupation fees charged to the non-nancial enterprises and included in current prot or loss?Prot or loss from the assets entrusted to others for investment or management?
Section X Financial ReportItemAmountRemarks
Prot or loss from external entrusted loans?Losses of various assets caused by force majeure such as natural disasters?Reversal of provision for impairment of receivables subject to separate impairment test?Prot generated when the Company’s investment cost in acquiring the subsidiary, aliated company andjoint venture is less than the fair value of the recognizable net assets of the invested unit at the time ofacquiring
?Current net prot or loss of the subsidiary generated from the business combination under common controlfrom the beginning of the period to the combination date
?Prot or loss from non-monetary assets exchange?Prot or loss from debt reorganization?One-time expenses incurred by the enterprise due to the discontinuation of related business activities, suchas the expenditure of employee resettlement, etc.
?One-time impact on the current prot and loss due to adjustments in laws and regulations of taxation andaccounting
?Share payment expenses recognized once due to cancellation or modication of equity incentive plansProfits and losses resulting from changes in the fair value of employee compensation payable after theexercise date in terms of cash-settled share paymentsProt or loss on changes in fair value of investment property by follow-up measurement in fair value mode?Prots from transactions with obviously unfair transaction prices?Prot or loss from the contingencies, unrelated to the normal business of the Company?Custody fees of entrusted operation?Other non-operating revenue and expenses except for the above-mentioned items19,796,255?Other prot or loss items that conform to the denition of non- recurring prot or loss?Less: Aected amount of income tax45,161,118?
Aected amount of minority equity (after tax)9,804,419?Total245,832,804?Explanations should be provided to the items not listed in the“Explanatory Announcement on Information Disclosure ofCompanies Oering Securities to the Public No. 1 - Non-recurring Prot or Loss”, but identied as non-recurring prot orloss items with signicant amount by the Company, and the non-recurring prot or loss items listed in the“ExplanatoryAnnouncement on Information Disclosure of Companies Oering Securities to the Public No. 1 - Non-recurring Prot orLoss”, but dened as recurring prot or loss items by the Company.?Applicable√ Not ApplicableOther description:
?Applicable√ Not Applicable
2. Return on net assets and earnings per share
√Applicable? Not ApplicableProt in the reporting period
Weighted average rate ofreturn on net assets (%)
Earnings per shareBasic earnings per shareDiluted earnings per shareNet prot attributable to ordinary shareholders of the Company3.370.100.10Prots attributable to the company’s common shareholders afterdeducting non-recurring prots and losses
1.740.050.05
3. Dierences in accounting data under domestic and overseas accounting standards
?Applicable√ Not Applicable
4. Others
?Applicable√ Not Applicable
ANNUAL REPORT2023
Chairman:
Date of reporting approved by the Board of Directors: March 28, 2024
Revision information?Applicable√ Not Applicable