Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Dajin Heavy Industry Co., Ltd.
Annual Report 2023(Summary)
April 2024
1
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Annual Report 2023
Section I Important Reminders, Contents and Definitions
The Board of Directors, the Board of Supervisors, directors, supervisors and senior
executives of the Company guarantee that the contents of this annual report are true,
accurate and complete, free from false records, misleading statements or major omissions,
and bear individual and joint legal liabilities.
Jin Xin, the person in charge of the Company, Liu Aihua, the person in charge of
accounting and Bai Xinhong, the principal of accounting firm (chief accountant) declare
that the financial information in the financial report of the annual report is true, accurate
and complete.
All directors have attended the Board of Directors meeting at which this report was
deliberated.
Forward-looking statements such as future business plans and business objectives of
the Company in this report do not represent the Company's profit forecasts, nor do they
constitute the Company's substantive commitment to investors, so investors are advised to
pay attention to investment risks.
The profit distribution plan approved by the Board of Directors of the Company is as
follows: on the basis of 637,749,349 shares, a cash dividend of CNY1.82 (tax included) will
be paid to all shareholders for every 10 shares; 0 bonus shares (tax included) will be given,
and the reserved funds will not be converted into additional capital.
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Contents
Section I Important Reminders, Contents and Definitions .......................................................................... 2
Section II Company Profile and Main Financial Indicators ........................................................................ 6
Section III Discussion and Analysis of the Management .............................................................................. 8
Section IV Corporate Governance ............................................................................................................... 17
Section V Important Matters ........................................................................................................................ 18
Section VI Information on Share Changes and Shareholders ................................................................... 19
Section VII Financial Report ........................................................................................................................ 22
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Contents of Reference Documents
I. Financial statements signed and sealed by the legal representative, the accounting supervisor and the principal
of accounting firm (person in charge of accounting).
II. Original audit reports sealed by the accounting firm and signed and sealed by registered accountants.
III. Originals of all the Company's documents and announcements and that have been publicly disclosed during
the reporting period.
IV. Other relevant data.
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Definitions
Item refers to Definition description
The Company, Company, Dajin
Heavy Industry refers to Dajin Heavy Industry Co., Ltd.
Reporting period refers to January 1, 2023 to December 31, 2023
CSRC refers to China Securities Regulatory Commission
SZSE refers to Shenzhen Stock Exchange
Controlling shareholder, Fuxin
Jinyin refers to Fuxin Jinyin Energy Consultation Co., Ltd.
Actual controller refers to Jin Xin
Penglai Dajin, Penglai Base refers to Penglai Dajin Offshore Heavy Industry Co., Ltd.
Zhangwu Xiliujiazi refers to Zhangwu Xiliujiazi Power New Energy Co., Ltd.
Panjin Dajin refers to Panjin Dajin Offshore Engineering Co., Ltd
Zhangjiakou Dajin refers to Zhangjiakou Dajin Wind Power Equipment Co., Ltd.
Articles of Association refers to Articles of Association of Dajin Heavy Industry Co., Ltd.
CNY refers to Chinese Yuan
Rules Governing the Listing of
Stocks refers to Rules Governing the Listing of Stocks on Shenzhen Stock Exchange
Standardized Operation Self-regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock
refers to
Exchange - Standardized Operation of Companies Listed on the Main Board
Any difference of mantissa between the total value and the sum of items in this report is due to rounding.
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Section II Company Profile and Main Financial Indicators
I. Company Information
Stock abbreviation Dajin Heavy Industry Stock code 002487
Stock abbreviation before change (if any) No
Stock Exchange where the stocks are listed Shenzhen Stock Exchange
Chinese name of the Company Dajin Heavy Industry Co., Ltd.
Chinese abbreviation of the Company Dajin Heavy Industry
English name of the Company (if any) Dajin Heavy Industry Co., Ltd.
English abbreviation of the Company (if any) DHI
Legal representative of the Company Jin Xin
Registered address No. 155, Xinqiu Street, Xinqiu District, Fuxin City
Postal code of registered address 123005
Change history of the Company's registered address No
Room 1102, East Tower, China Overseas Plaza, Building 7, Courtyard 8, West Binhe Road,
Office address
Yongdingmen, Dongcheng District, Beijing
Postal code of office address 100077
Company website https://www.dajin.cn/
Tel 010-57837708
E-mail stock@dajin.cn
II. Main Accounting Data and Financial Indicators
Whether the Company is required to retroactively adjust or restate prior years' accounting data
□Yes No
Increase or decrease
2023 2022 2021
from the previous year
Operating income (CNY) 4,325,081,969.61 5,106,113,624.27 -15.30% 4,431,981,035.44
Net profit attributable to
shareholders of the listed 425,157,196.53 450,276,514.14 -5.58% 577,402,207.90
company (CNY)
Net profits attributable to
shareholders of the listed
company, net of non- 367,840,006.15 417,177,669.27 -11.83% 562,168,587.48
recurring gains or losses
(CNY)
Net cash flow from operating 808,698,823.80 112,200,514.84 620.76% 21,223,949.62
activities (CNY)
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Basic EPS (CNY/share) 0.67 0.80 -16.25% 1.04
Diluted EPS (CNY/share) 0.67 0.80 -16.25% 1.04
Decreased by
ROEWA 6.32% 12.94% 21.35%
6.62%
Increase or decrease
End of 2023 End of 2022 from the end of the End of 2021
previous year
Total assets (CNY) 10,224,813,274.51 11,259,103,311.78 -9.19% 6,650,087,927.21
Net assets attributable to
shareholders of the listed 6,914,166,614.83 6,507,025,370.64 6.26% 2,998,969,585.64
company (CNY)
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Section III Discussion and Analysis of the Management
I. Industry Situation of the Company during the Reporting Period
1. The global wind power continued to grow, offering broad growth prospect. In 2023, the global
wind power market surpassed the first TW milestone, and by 2030, the annual global new installation
capacity target is estimated to increase to 320GW, accumulating a total installed capacity of over 3TW.
According to the Global Wind Energy Council (GWEC), the latest Global Wind Report 2024 released this
month indicates a strong growth trend in the global wind power market in 2023, with 54 countries achieving
new wind power installations, adding 116.6GW, a record high, representing a 50% growth year-on-year. By the
end of 2023, the cumulative global installed capacity of wind power reached 1021GW, surpassing the first TW
(1000GW) milestone, a 13% increase year-on-year.
Image source: GWEC Global Wind Energy Report 2024
According to the GWEC Report, to achieve the targets set by COP28, "tripling the global installed capacity
of renewable energy power generation by 2030" and "limiting the global warming within 1.5°C as the pre-
industrial level", the wind power sector needs to increase the annual new installed capacity from the current
117GW to at least 320GW by 2030. By 2030, the cumulative global installed capacity of wind power is
expected to reach 3.5TW (3500GW). To achieve this goal, the GWEC Report emphasizes and calls for
strengthened cooperation in key areas such as investment, supply chain, infrastructure, and public consensus to
sustain the growth of wind power.
2. GWEC raised forecast for global installation growth from 2024-2028, projecting a near 10%
compound annual growth rate (CAGR) in the next five years.
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Image source: GWEC Global Wind Energy Report 2024
Although the global installed capacity level in 2023 is the highest on record, to adapt to the global policy
environment and the prospects of emerging markets, GWEC Report has revised the growth forecast for 2024-
2028, projecting a near 10% CAGR in the next five years. Based on this forecast, the global new installed
capacity in 2024 will reach 130GW, with new installed capacity of 791GW over the next five years, averaging
158GW annually.
From 2024 to 2028, the global offshore wind capacity is expected to increase by 138GW, with an annual
installed capacity projected at 27.6GW. By 2028, the annual new installed capacity of offshore wind power
market is expected to reach 37.1GW, tripling the 2023 figure, and the share of offshore wind power in new
global installed capacity will increase from the current 9% to 20%.
3. The CAGR forecast for the global offshore wind power market from 2024 to 2028 will be raised to
28%, up from 14.8% over the past five years. China and Europe will continue to dominate growth in the
short term, while the United States and the Asia-Pacific emerging markets will gain substantial market
shares starting from 2026.
Image source: GWEC Global Wind Energy Report 2024
In 2023, the global new installed capacity of offshore wind power reached 10.8GW, a 24% increase year-
on-year, making it the second highest year for new installed capacity of offshore wind power. The Chinese
market added installed capacity of 6.3GW, and the European market added 3.8GW. By the end of 2023, the
global cumulative installed capacity of offshore wind power reached 75.2GW, with the Chinese market at
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
38GW and the European market at 34.3GW (43% in the UK, 24% in Germany). China and Europe will
continue to dominate growth in the short term, expected to exceed 85% of the global market share in 2024-2025.
Emerging markets such as the United States and Asia-Pacific (excluding China) will gain significant
market shares from 2026, and by 2028, the annual new installed capacity in regions outside China and Europe
may account for more than 20% of the total global installed capacity.
4. By the year 2030, the annual installed capacity of offshore wind power in Europe is projected to
reach 31.4 GW, surpassing that of onshore wind power and providing impetus for the growth of the
global offshore wind power market.
In 2023, the total new installed capacity of wind power in Europe reached 18.3 GW, with that of onshore
wind power reaching 14.5 GW and offshore wind power reaching 3.8 GW. The EU27 member countries
accounted for 88% of the new installed wind power capacity, with Germany being the largest wind power
installation country in Europe, offshore wind power accounting for 21% of the total, and the Netherlands, the
UK, France, Denmark, and Norway being the main new offshore wind power installation countries, while non-
EU countries like Turkey and Serbia also have considerable new wind power installations.
Wind power installations in Europe (2014-2023)
Image source: Wind energy in Europe: 2023 Statistics and the outlook for 2024-2030
In Europe, more than 42GW of installed offshore wind power capacity is expected to be built from 2024 to
2028, with 44% of the share installed in the UK, 15% in Germany, 11% in Poland, 8% in the Netherlands, 6% in
France, and 5% in Denmark.
Wind power installation forecast in Europe (2024-2030)
Image source: Wind energy in Europe: 2023 Statistics and the outlook for 2024-2030
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
After the break-out of Russia-Ukraine conflict, Europe is accelerating renewable energy development to
achieve energy security. According to the report, the new onshore wind power installations in Europe are
expected to remain relatively stable, while the new installed capacity of offshore wind power shows a
significant increase starting from 2026, especially in 2029 and 2030, when a sharp increase is expected. By
2030, the annual new installed offshore capacity is projected to reach 31.4GW, surpassing onshore wind power.
Starting from 2023, Europe has already begun to turn its ambitious goals into actions. The UK government
announced in March 2024 that it would provide 800 million to support offshore wind power in the sixth round of
Contracts for Difference allocations (CFD AR6), which is expected to procure around 4-6GW of offshore wind power.
According to the GWEC Report, 2024 will be a record year for offshore wind power auctions globally, with more
than 60GW of offshore wind power capacity expected to go through the auction and leasing process.
5. Over 80% of global (excluding China) offshore wind power foundations in the next five years will
be monopile products; and the global (excluding China) offshore wind power foundations capacity gap is
gradually widening from now to 2030.
According to public information, from 2024-2028, monopiles will dominate the offshore wind power
foundations market in Europe and other overseas markets, accounting for over 80% of the market share. Although the
future wind power foundations is expected to develop to deep sea, with an annual increasing market share for jackets
and floating foundations, monopiles will remain the mainstream product for offshore wind power foundations over
the next five years.
According to the GWEC 2023 Report, in the 2023-2030 offshore wind energy demand and supply analysis, a
capacity shortfall is expected in Europe, Asia-Pacific (excluding China), and North America in the coming years,
particularly in Europe after 2027. Currently, the major production capacity of offshore wind power products in major
developed economies around the world is concentrated in Europe and the Company, and the capacity fulfillment rate
of global offshore wind power foundations (excluding China) is less than 70%.
Europe is projected to add 100GW of new installations from 2024-2030, with a noticeable increase in demand
from 2026. Even if major European offshore foundation supplies complete expansion before 2026, the overall
capacity fulfillment rate will only maintain at less than 60%, a decline rather than an increase; the expansion rate still
cannot meet the pace of market demand growth.
II. The Company's Main Business during the Reporting Period
The Company primarily engages in the production and sales of wind power equipment products and invests in the
development, construction, and operation of new energy projects. In the wind power equipment manufacturing sector, the
Company mainly produces and sells towers, monopiles, jackets, floating foundations, transition pieces, and other wind power
products.
The Company began constructing the Penglai Offshore Base ten years ago and has been actively developping the "second
growth curve" in addition to the traditional onshore wind power products, namely the overseas offshore wind equipment. In recent
years, this strategic focus has yielded substantial results, with a continuous increase in European orders. This year, the Company
entered a new phase of its "Offshore & Overseas Strategy". In response to the high technical standards, high quality requirements,
high value-added characteristics of the global offshore wind power market in developed countries, the Company is continuously
iterating its market and product offerings, striving to achieve the leading market share in the major developed economies' offshore
wind power markets within the next 3-5 years. Simultaneously, the Company is actively planning its "third growth curve" by
collaborating with leading international floating foundation solution providers and developing the next generation of floating
foundation products. Leveraging the new Panjin Base, the Company is constructing its own ship-building base, organizing its self-
owned professional transport fleet, and establishing a global logistics system to become a one-stop product solution provider that
integrates production and transportation.
III. Analysis on Core Competitiveness
(1) Strategic first-mover advantage
For over twenty years, the Company has been focusing on the wind power equipment manufacturing industry, pursuing
superior markets and higher quality for long-term development. By conducting continuous, prudent, and thorough research on
different markets and industrial chain links, the Company has iterated its products and markets ahead of key industry turning
points, making strategic decisions that have allowed it to pioneer new markets and products. From the Chinese market to
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
international markets, and from onshore to offshore wind power products, the Company has maintained strong strategic resolve
and execution capabilities.
Since 2019, the Company has successfully entered the European offshore wind power market, making significant progress in
marketing services optimization, technological process upgrades, quality control improvements, and transportation scheme design
through close collaboration with international customers. Since last year, the Company has won a number of overseas project
orders, and is currently the only supplier in the Asia-Pacific region to realize the delivery of offshore products to the European
market. Building on the solid foundation of its competitive advantages in the European market, the Company is simultaneously
advancing its strategic layout in deep-sea floating foundations and global logistics systems. It has established strategic partnerships
with leading global research institutions and logistics scheme design organizations to create new growth curves.
In terms of industrial chain layout, while deploying major domestic offshore bases in Penglai, Tangshan, and Panjin, the
Company is actively planning overseas bases in Europe, North America, and Southeast Asia, with a planned global production
capacity of over 3 million tons. Based on Europe, the Company is constructing a global strategic marketing system, setting up
permanent foreign institutions in Europe, North America, Japan, and Korea, and establishing a marketing service network that
covers the major offshore wind development regions worldwide.
(2) Equipment and facilities advantage
As wind turbines become larger and the development of deep-sea areas continues, combined with the high delivery standards
required by overseas projects, higher requirements are placed on suppliers regarding site scale, port conditions, and equipment
capabilities.
The manufacturing of offshore products requires sufficient production and storage areas close to quays. The company's
Penglai Offshore Base has an area of 570,000 square meters specialized in manufacturing offshore towers, monopiles, and jackets,
with workshop areas exceeding 200,000 square meters. The Panjin and Tangshan bases under construction cover a larger scale and
posess more superior quay infrastructures. Excellent seaport conditions are crucial for transporting wind power equipment globally
and supporting the future development of offshore wind power. Penglai Dajin Port, with its deep water and open port
qualifications, forms a strong barrier for exporting offshore wind power products. As one of the world's largest offshore wind
power base and marshalling port, Penglai Offshore Base has three operational open-access berths, including two 100,000-ton
berths and one 35,000-ton wind power installation-specific recessed berth, with natural water depths ranging from 10m to 16m,
making it a premium deep-water port in China.
Advanced equipment with excellent processing accuracy and operational stability provides the foundation for delivering high-
quality products to customers. After multiple phases of technical upgrades, the Company's Penglai Offshore Base has achieved a
leading position in technological processes and equipment upgrades before product iterations. The Base has invested heavily in a
full set of advanced equipment, including a 1000-ton gantry crane, imported plate rolling machine, triple-wire welding machine,
and automatic milling machine, effectively meeting the higher demands for product quality, production and shipping efficiency
required by European offshore wind power projects. Additionally, based on the future ten-year development trends of offshore
wind power, the Company has initiated the deployment of more advanced production equipment and facilities in the Tangshan and
Panjin Bases to meet higher delivery standards.
(3) Continuous innovation of technical processes in line with international standards
The technical barriers of offshore wind power equipment are gradually increasing, and the ability to tackle process quality
challenges combined with technological innovation capacity has become the Company's greatest reliance for international
development. As one of the earliest Chinese companies to provide offshore wind power equipment to international customers, the
Company has accumulated quality control capabilities that meet international standards to satisfy the high-quality standards and
stringent certification systems of international customers.
The Company, as one of the earliest enterprises to provide offshore wind power equipment for overseas, has taken the lead in
breaking through numerous process and quality difficulties, realized several breakthroughs from 0 to 1 under the ultra-difficult
process level and nearly harsh standard requirements, accumulated unique technical innovation capability, and formed a batch
delivery system for executing European offshore projects.
(4) Advantage of high-quality overseas customer resources
Since entering the European offshore wind power market in 2019, the Company has accumulated a portfolio of mainstream
European customers through efforts in overseas market development, international customer quality audits, and consistent project
delivery. With robust comprehensive competitive capabilities, the Company has positioned itself among the top tier of the global
wind power equipment manufacturing industry and established a strong brand reputation. Our products have been exported to over
thirty countries and regions, including UK, Germany, France, Japan, South Korea, Vietnam, Italy, Chile, Norway, Finland, India,
Canada, and Australia. We have won a reputation for quality and market services through our own excellent product quality and
perfect service system. While maintaining our competitive strength in the existing European market, the Company is continuously
expanding and gaining new overseas customer certifications in Europe, North America, and Southeast Asia, leading the world in
overseas orders in hand.
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
(5) Advantage of a globalized talent pool
The Company has built a high-quality management team and a skilled industrial workforce with a global perspective through
external recruitment and internal training, enhancing our global talent pool. Since 2018, we have developed a local sales team in
Europe, now equipped with dozens of experienced sales personnel who closely match the needs of major energy companies and
key customers in Europe. Additionally, the Company is building more comprehensive business and management teams in other
overseas regions, supporting the effective implementation of our globalization strategy.
IV. Main Business Analysis
1. Overview
(1) Accelerated overseas deployment and significant increase in overseas business revenue share; export
operations now dominated by offshore products.
In 2023, the Company's total export volume grew by over 60% year-on-year, speeding up the process of going
overseas, with export products contributing nearly 40% to the total revenue, increasing 23% from nearly 17% in 2022.
Export operations were dominated by offshore products, with an annual overseas shipment of nearly 100,000 tons, a
sales volume increase of over 4000%, and a revenue increase of over 4300% compared to the previous year.
During the reporting period, combined revenue from overseas and domestic offshore projects accounted for
about 51% of the wind power segment's revenue, a 17% increase from the previous year, surpassing onshore products
for the first time.
(2) Successfully realized large-scale deliveries of offshore products to Europe in 2023; multiple overseas
orders will be manufactured and delivered in 2024.
As the only supplier in the Asia-Pacific region to deliver offshore wind power foundations to Europe in a decade,
2023 marked the inaugural year of large-scale export of offshore projects. Throughout the year, nearly 100,000 tons
of offshore wind power products were shipped to Europe, including the manufacturing and delivery of the world's
largest monopile for offshore wind power to date: with a maximum diameter of 10m, a maximum single weight of
2,014 tons, and a maximum thickness of 115 mm.
In 2024, the Company's export volume and project scope in Europe will further increase, delivering various
types of offshore products, including monopiles, offshore towers, and transition pieces, to several offshore wind farm
projects in France, Denmark, UK, the Netherlands, and other locations.
(3) Successively won high-quality orders of "exclusive supply", "ultra-heavy unit weight", etc., with
overseas order volume increasing by over 50% year-on-year in 2023; sufficient and expanding potential orders
in tendering process.
In 2023, the company leads the world regarding the total order value of offshore wind power monopiles, with total signed
orders increasing by more than 50% compared to 2022. Based on the delivery schedule of orders, it is expected to deliver
sequentially to countries and regions such as UK, France, Germany, Denmark, and the Netherlands from 2024 to 2026.
The Company signed an exclusive supply agreement with a leading energy company in Germany, committing to deliver a
total of 105 monopiles, covering all the foundation demands of that wind farm. The Company also signed a production reservation
agreement with a European energy company, with the maximum unit weight of monopiles reaching 2,700 tons. The signed orders
have higher technical standards and larger supply scale, serving as the most effective approval to the Company's manufacturing
capability and quality control.
Meanwhile, the Company is participating in several offshore projects in Europe, Japan, Korea, and the United States, with a
total demand exceeding 3 million tons, involving monopiles, jackets, floating foundations, and other offshore products. It is
expected to obtain tender results sequentially from 2024 to 2027.
(4) Layout of "Penglai + Tangshan + Panjin" three major offshore bases, covering "global full-range
offshore products".
(a) One of the worlds largest monopile manufacturing and export base - Penglai Offshore Base
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
In 2023, the Penglai Base underwent multiple technological upgrades and effective manufacturing and transportation
practices of offshore export projects. This included system upgrades across technologies, processes, equipment, and logistics,
establishing it as a world-class offshore base. It has now become one of the largest global base for manufacturing monopiles
meeting European offshore wind power standards, highly recognized by mainstream wind power developers and OEMs in Europe,
with multiple batches of international customers conducting site audits, and granted with various international and domestic
technical certifications.
(b) Dajin Strategic New Base – Caofeidian Offshore Super Factory expected to be constructed and put
into operation by March 2025.
The Tangshan Caofeidian Base will adopt the world's most advanced equipments and facilities, and the globally first created
fully indoor manufacturing model for ultra-large sections, building a world-class super factory capable of mass-producing all types
of ultra-large wind power and offshore oil and gas foundations.
The project covers more than 86 hectares, aligning with the global forefront of offshore wind power products for the next
decade, focusing on the manufacturing lines for ultra-large deep-sea jackets and floating foundations. In terms of equipment and
facilities, the base features a unique large-volume design by the Company, with the workshop height of 65m, a single span width
of 70m, and a length of 410m. The complete design breaks the industry limits of processing capacity and innovates product
manufacturing techniques. The Factory's largest single gantry crane has a lifting capacity of 3,000 tons, with all core equipment
imported from Europe.
To meet the production and delivery needs of subsequent offshore monopile orders and deep-sea project orders, the
Caofeidian Offshore Super Factory will accelerate construction, which is expected to complete construction and put into operation
by March 2025.
(c) Establish a global logistics system and shipbuilding base specially for the transportation of offshore
wind power equipment – Panjin Offshore Base
To complement the global strategic layout, the Company is building a supporting global logistics system. The special
transportation vessel for offshore wind power equipment, designed and manufactured by the Company itself, has design breadth of
51m, total length of 240m, deadweight of over 50,000 tons, and draft of 8m. This vessel is designed and built based on the
exclusive needs and long-term planning of offshore wind power equipment transportation, significantly improving transportation
efficiency compared to the large transportation vessels currently used in the market. In the future, it will provide the Company
with more economical and convenient solutions for transportation of overseas offshore products, especially deep-sea products.
The Company will gradually deliver two special transportation vessels for offshore wind power equipment in 2025. In the
future, it plans to build its own transport fleet composed of 10 to 20 ultra-large transportation vessels of different tonnages.
(5) Reserve deep-sea technology, actively promoting the development and bidding of the next generation
of offshore products (floating foundations, jackets).
The Company has collaborated with a global leading floating foundation design company to develop the next
generation of floating foundation products, covering the entire process from design, manufacturing, transportation, to
assembly. Additionally, the Company was invited to participate in and propel the bidding of multiple European
floating foundation and jacket projects.
(6) Orderly expand new energy power projects, becoming a new growth driver for the Company's
performance.
During the reporting period, the Fuxin Zhangwu Xiliujiazi 250MW wind power project was connected to the grid, generating
over 400 million kWh of electricity annually, contributing a revenue of CNY132 million. This project is located in a region with
rich wind resources, and is expected to positively impact the Company's performance in 2024.
The Tangshan Caofeidian Shilihai 250MW fishery-solar PV project has completed its filing, which is expected to commence
construction in mid-2024 and completed within the year. Additionally, the Company has reserved a total of 1GW new energy
development projects in Hebei Province.
2. Income and costs
(1) Composition of operating income
Unit: CNY
2023 2022 Year-on-year
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
increase or decrease
Proportion to Proportion to
Amount operating Amount operating
income income
Total operating income 4,325,081,969.61 100% 5,106,113,624.27 100% -15.30%
By industry
Metal products 4,193,467,024.83 96.96% 5,106,113,624.27 100.00% -17.87%
New energy power
131,614,944.78 3.04% - - -
generation
By product
Wind power equipment
4,146,031,513.82 95.86% 4,992,421,341.99 97.77% -16.95%
products
New energy power
131,614,944.78 3.04% - - -
generation
Other 47,435,511.01 1.10% 113,692,282.28 2.23% -58.28%
By region
Domestic 2,610,429,784.50 60.36% 4,268,188,304.95 83.59% -38.84%
Export 1,714,652,185.11 39.64% 837,925,319.32 16.41% 104.63%
By sales mode
Direct selling 4,325,081,969.61 100.00% 5,106,113,624.27 100.00% -15.30%
Product regions are divided by the location of the final installation, the same below.
(2) Industry, product, region or sales mode that accounts for more than 10% of the Company's operating income or
operating profit
Applicable □ Not applicable
Unit: CNY
Year-on-year Year-on-year Year-on-year
increase or increase or increase or
Operating income Operating costs Gross margin
decrease of decrease of decrease of gross
operating income operating costs margin
By industry
Metal
4,193,467,024.83 3,297,773,333.62 21.36% -17.87% -22.45% 4.64%
products
New energy
power 131,614,944.78 13,617,633.50 89.65% - - -
generation
By product
Wind power
equipment 4,146,031,513.82 3,285,357,254.03 20.76% -16.95% -22.48% 5.65%
products
New energy
power 131,614,944.78 13,617,633.50 89.65% - - -
generation
By region
Domestic 2,610,429,784.50 2,063,097,732.02 20.97% -38.84% -40.87% 2.72%
Export 1,714,652,185.11 1,248,293,235.10 27.20% 104.63% 63.61% 18.25%
By sales mode
Direct selling 4,325,081,969.61 3,311,390,967.12 23.44% -15.30% -22.13% 6.72%
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Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
(3) Performance of major sales contracts and major purchase contracts signed by the Company up to the reporting
period
Amount of
Amount Description
sales Cumulative
fulfilled Whether of non- Collection
Subject Total Total Amount revenue amount of
during to normal of
matter of Counterparty contract amount to be recognized sales
the perform performance accounts
contract amount fulfilled fulfilled during the revenue
reporting normally of the receivable
current recognized
period contract
period
Supply of
monopile
foundation A European
626 626
for an energy Not Not
million 0 0 million Yes 0 0
offshore development applicable applicable
euros euros
wind farm company
in
Germany
16
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Section IV Corporate Governance
I. Profit Distribution and Capital Reserve Conversion to Share Capital of the Company
Number of bonus shares per 10 shares (shares) 0
Dividend payout per 10 shares (CNY) (tax included) 1.82
Equity base for distribution proposal (shares) 637,749,349
Amount of cash dividends (tax included) (CNY) 116,070,381.52
Amount of cash dividends by other means (such as share repurchase) (CNY) 0.00
Total amount of cash dividends (including other means) (CNY) 116,070,381.52
Distributable profit (CNY) 2,376,861,748.74
Ratio of Amount of cash dividends (tax included) (CNY) in total profit distribution 100%
Current cash dividends
If the Company's development stage is in the growth period and there is a major capital expenditure arrangement, when profit
distribution is made, cash dividends should account for at least 20% of the profit distribution
Notes on the Details of Plan for Profit Distribution or Capital Reserve Converted into Share Capita
Based on the total share capital of the Company of 637,749,349 shares as at the date of disclosure of this announcement, a cash
dividend of CNY1.82 (tax included) per 10 shares will be paid to all shareholders, and the remaining undistributed profits will be
carried forward to future years, with no bonus shares to be distributed and no conversion of capital reserve to share capital.
II. Internal Control Audit Report
Applicable □ Not applicable
Review opinion in the internal control audit report
We believe that, as of December 31, 2023, Dajin Heavy Industry has maintained effective internal controls over financial
statements in all significant aspects in accordance with the "Basic Internal Control Norms for Enterprises" and relevant regulations.
Disclosure of internal control audit report Disclosed
Date of full disclosure of internal control audit report April 27, 2024
Index of full-text disclosure of internal control audit report Internal control audit report of Dajin Heavy Industry Co., Ltd.
Opinion type of internal control audit report Standard unqualified opinion
Whether there are material deficiencies in non-financial reports No
17
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Section V Important Matters
I. Material Guarantee
Unit: CNY10,000
Total company guarantee (i.e. the sum of the first three items)
Total approved guarantee limit during the reporting period 1,300,000 Total actual guarantee issued during the 875,130.09
(A1+B1+C1) reporting period (A2+B2+C2)
Total approved guarantee limit at the end of the reporting 875,130.09 Total actual guarantee balance at the end of the 606,879.81
period (A3+B3+C3) reporting period (A4+B4+C4)
Total actual guarantee (i.e., A4+B4+C4) as a percentage of the Company's net 87.77%
assets
Including:
Balance of guarantees provided for shareholders, actual controllers, and their 0
affiliated parties (D)
Balance of debt guarantees provided directly or indirectly for guaranteed objects 60,000
with an asset-liability ratio exceeding 70% (E)
Amount of total guarantees exceeding 50% of net assets (F) 261,171.48
Sum of above three guarantees (D+E+F) 261,171.48
18
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Section VI Information on Share Changes and Shareholders
I. Securities Issuance and Listing
Issue
Name of
price
stock and Number of Transacti
Issue (or Issue Disclosu
its Listing date approved on end Disclosure index
date intere quantity re date
derivativ listings date
st
es
rate)
Stock type
For details, please refer
to the "Non-public
Issuance Report of A
Shares and Listing
Announcement of Dajin
Non-
Januar Heavy Industry Co., Decembe
public
y 3, 37.35 82,088,349 January 4, 2023 82,088,349 - Ltd." published by r 29,
offering
2023 "Securities Times", 2022
of shares
"China Securities
Journal" and CNINFO
(http://www.cninfo.com.
cn) on December 30,
2022.
II. Shareholders and Actual Controllers
1. Number of shareholders of the Company and their shareholdings
Unit: Stock
Total number of
Total number of
preferred
common
Total number of shareholders Total number of preferred shareholders
shareholders at
common with restored with restored voting rights at the end of
98,671 the end of the 92,352 0 0
shareholders at voting rights at the previous month before the annual
previous month
the end of the the end of the report disclosure date (if any) (see Note
before the
reporting period reporting period 8)
annual report
(if any) (see
disclosure date
Note 8)
Shareholding situation of shareholders holding more than 5% or top 10 shareholders (excluding shares lent through refinancing)
Number of shares Number of Number of shares Pledges, tags or freezes
Changes during
Name of Nature of Shareholding held at the end of shares with without
the reporting
shareholder shareholder ratio the reporting restrictions on restrictions on
period Share status Quantity
period sale sale
Fuxin Jinyin Domestic
Energy non-state-
38.93% 248,300,500 5,250,000 0.00 248,300,500 Not applicable 0
Consultation Co., owned legal
Ltd. person
Hong Kong
Securities Overseas
1.45% 9,242,818 2,018,053 0.00 9,242,818 Not applicable 0
Clearing legal person
Company Limited
China Securities
Co., Ltd. - CCB
Other 1.35% 8,595,690 6,769,090 0.00 8,595,690 Not applicable 0
New Energy
Industry Equity
19
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Securities
Investment Fund
Domestic
Jin Xin natural 1.21% 7,745,625 0 5,809,219 1,936,406 Not applicable 0
person
National Social
Other 0.76% 4,866,800 4,866,800 0.00 4,866,800 Not applicable 0
Security Fund 104
National Social
Other 0.54% 3,449,776 711,576 0.00 3,449,776 Not applicable 0
Security Fund 602
Cathay Fund -
Agricultural Bank
of China - Cathay
Blue Chip Value Other 0.49% 3,100,000 3,100,000 0.00 3,100,000 Not applicable 0
No. 1 Collective
Asset
Management Plan
CITIC Securities
Co., Ltd. - CCB
Xingrun One-Year
Other 0.46% 2,917,600 2,917,600 0.00 2,917,600 Not applicable 0
Holding Hybrid
Securities
Investment Fund
CGN Capital State-
Holdings Co., owned legal 0.42% 2,677,376 2,677,376 0.00 2,677,376 Not applicable 0
Ltd. person
Domestic
Li Yamei natural 0.40% 2,577,500 0 0.00 2,577,500 Not applicable 0
person
2. Controlling shareholders of the Company
Nature of controlling shareholder: Natural person holding
Type of controlling shareholder: Legal person
Legal
Name of controlling representative/prin
Date of establishment Organization code Major business
shareholder cipal of the
Company
General items: Business
management consulting, consulting
and planning services, information
consulting services (excluding
licensed information consulting
Fuxin Jinyin Energy services), marketing planning
Jin Xin August 11, 2003 912109037527653728
Consultation Co., Ltd. (except for business items subject to
approval pursuant to the law, the
Company shall carry out business
activities autonomously with
business license pursuant to the
law)
The controlling shareholder of the Company did not change during the reporting period.
3. Actual controller of the Company and its concerted parties
Nature of actual controller: Domestic natural person
Type of actual controller: Natural person
Whether the right of residence in
Relationship with actual
Name of actual controller Nationality other countries or regions is
controller
obtained
Jin Xin In person China No
Currently serves as the Chairman of the Company and its subsidiaries; concurrently serves as Executive
Main occupation and position Director and General Manager of Fuxin Jinyin Energy Consultation Co., Ltd.;
Information on domestic and
overseas listed companies that No
have been controlled in the past
10 years
20
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
The actual controller of the Company did not change during the reporting period.
Block diagram of the property rights and control relationship between the Company and the actual controller
Jin Xin
Fuxin Jinyin Energy Investment Co., Ltd.
Dajin Heavy Industry Co., Ltd.
21
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Section VII Financial Report
I. Audit Report
Type of audit opinion Standard unqualified opinion
Signing date of audit report April 25, 2024
Name of audit institution BDO China Shu Lun Pan Certified Public Accountants LLP
Document No. of audit report XKSBZ [2024] No. ZG11375
Name of certified public accountant Shi Aihong, Xiong Yu
II. Financial Statements
The unit of statements in the notes to financial statements is CNY.
1. Consolidated balance sheet
Prepared by: Dajin Heavy Industry Co., Ltd.
December 31, 2023
Unit: CNY
Item December 31, 2023 January 1, 2023
Current assets:
Monetary funds 1,960,572,967.42 4,052,470,388.42
Provision for settlement fund
Funds lent
Trading securities 1,003,673,018.90
Derivative financial assets
Notes receivable 40,188,682.53
Accounts receivable 1,629,436,576.02 1,769,653,223.06
Accounts receivable financing 289,715,098.79 375,298,033.27
Prepayment 278,551,569.66 408,572,826.77
Premium receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables 32,988,574.48 355,280,093.41
Including: interest receivable
22
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Dividends receivable
Redemptory monetary capital for sale
Inventory 1,545,529,824.24 1,736,764,364.60
Contract assets 307,716,357.72 189,251,347.41
Held-for-sale assets
Non-current assets maturing within one year
Other current assets 205,002,094.08 102,844,574.67
Total current assets 7,293,374,763.84 8,990,134,851.61
Non-current assets:
Loans and advances
Debt investments 112,174,657.55
Other debt investments
Long-term receivables
Long-term equity investment
Other equity instrument investment
Other non-current financial assets
Investment real estate
Fixed assets 1,564,756,590.02 1,041,030,360.60
Construction in progress 836,938,008.14 902,948,109.31
Productive biological assets
Oil-and-gas assets
Right-of-use assets 124,882,564.34 53,410,403.15
Intangible assets 270,047,977.16 225,043,597.30
Development expenditures
Goodwill
Long-term deferred expenses
Deferred tax assets 20,848,996.60 8,752,420.73
Other non-current assets 1,789,716.86 37,783,569.08
Total non-current assets 2,931,438,510.67 2,268,968,460.17
Total assets 10,224,813,274.51 11,259,103,311.78
Current liabilities:
Short-term loans 9,769,934.37 426,079,140.36
23
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Loans from the central bank
Borrowed funds
Trading financial liabilities 21,481,786.02
Derivative financial liabilities
Notes payable 1,053,285,789.19 1,728,263,823.30
Accounts payable 612,478,188.29 422,106,303.30
Advances from customers
Contract liabilities 588,995,745.72 694,388,236.89
Financial assets sold for repurchase
Deposits from customers and other banks
Receiving from vicariously traded securities
Receiving from vicariously sold securities
Employee compensation payable 11,024,892.33 9,796,898.60
Taxes payable 14,693,699.96 53,674,509.52
Other payables 94,255,158.01 86,158,423.05
Including: interest payable
Dividends payable
Handling charges and commissions payable
Reinsurance accounts payable
Held-for-sale liabilities
Non-current liabilities maturing within one year 493,189,271.50 79,062,272.71
Other current liabilities 30,966,023.97 43,994,609.10
Total current liabilities 2,930,140,489.36 3,543,524,216.83
Non-current liabilities:
Reserves for insurance contracts
Long-term loans 394,000,000.00
Bonds payable
Including: preferred stock
Perpetual bonds
Lease liabilities 88,093,066.19 23,717,958.69
Long-term payables 108,681,305.37 602,558,550.53
Long-term employee benefits payable
24
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Estimated liabilities
Deferred income 179,522,520.99 184,162,049.43
Deferred tax liabilities 4,209,277.77 4,115,165.66
Other non-current liabilities
Total non-current liabilities 380,506,170.32 1,208,553,724.31
Total liabilities 3,310,646,659.68 4,752,077,941.14
Owner's equity:
Share capital 637,749,349.00 637,749,349.00
Other equity instruments
Including: preferred stock
Perpetual bonds
Capital reserve 3,806,028,183.90 3,806,610,083.90
Less: treasury stock 843,000.00
Other comprehensive income -894,460.53 -474,386.06
Special reserve
Surplus reserve 94,421,793.72 90,579,859.48
General risk reserve
Undistributed profits 2,376,861,748.74 1,973,403,464.32
Total owner's equity attributable to the parent
6,914,166,614.83 6,507,025,370.64
company
Minority equity
Total owner's equity 6,914,166,614.83 6,507,025,370.64
Total liabilities and owner's equity 10,224,813,274.51 11,259,103,311.78
Legal Representative: Jin Xin Person in charge of Accounting: Liu Aihua Principal of Accounting Firm: Bai Xinhong
2. Consolidated income statement
Unit: CNY
Item 2023 2022
I. Total operating income 4,325,081,969.61 5,106,113,624.27
Including: operating income 4,325,081,969.61 5,106,113,624.27
Interest income
Premium earned
Handling charges and commissions
II. Total operating costs 3,888,096,631.86 4,655,069,722.53
Including: operating costs 3,311,390,967.12 4,252,192,335.62
Interest expenses
Expenditures for handling fee and commissions
Refunded premiums
Net compensation expenses
Net amount withdrawn for insurance contract reserves
25
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Expenditures for policy dividends
Reinsurance expenses
Taxes and surcharges 30,656,739.46 18,419,984.86
Sales expenses 70,459,195.99 40,202,685.40
Administrative expenses 155,636,365.43 119,003,801.18
R&D expenses 255,605,750.57 215,341,392.76
Financial expenses 64,347,613.29 9,909,522.71
Including: interest expenses 13,839,058.50 24,878,002.86
Interest income 34,625,865.25 12,789,779.72
Add: other income 30,210,469.55 26,029,372.91
Investment income (loss indicated with "-") 15,418,039.24 63,099,520.11
Including: income from investments in associates and joint
ventures
Income from derecognition of financial assets at -6,874,289.14
amortized cost
Exchange income (loss indicated with "-")
Net exposure hedging income (loss indicated with "-")
Income from changes in fair value (loss indicated with "-") 2,191,232.88
Credit impairment loss (loss indicated with "-") -1,061,200.89 -17,463,171.22
Asset impairment loss (loss indicated with "-") -6,916,975.14 -341,687.73
Gains from disposal of assets (loss indicated with "-") -19,871.20 638,349.46
III. Operating profits (loss indicated with "-") 476,807,032.19 523,006,285.27
Add: non-operating income 8,056,920.21 5,831,011.01
Less: non-operating expenses 138,631.92 4,975,624.95
IV. Total profit (total loss indicated with "-") 484,725,320.48 523,861,671.33
Less: income tax expenses 59,568,123.95 73,585,157.19
V. Net profit (net loss indicated with "-") 425,157,196.53 450,276,514.14
(I) Classification by going concern
1. Net profits from going concern (net loss indicated with "-") 425,157,196.53 450,276,514.14
2. Net profits from discontinued operation (net loss indicated with "-")
(II) Classification by attribution of the ownership
1. Net profit attributable to shareholders of the parent company 425,157,196.53 450,276,514.14
2. Minority profit or loss
VI. Net amount of other comprehensive income after tax -420,074.47 46,406.34
Net amount of other comprehensive income after tax attributable to the
-420,074.47 46,406.34
owners of the parent company
(I) Other comprehensive income that cannot be reclassified into
8,500.00
profits or losses in subsequent periods
1. Changes from re-measurement of defined benefit plan
2. Other comprehensive income that cannot be carried over to profit
or loss under equity method
26
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
3. Changes in the fair value of other equity instrument investment 8,500.00
4. Changes in the fair value of the company's own credit risk
5. Other
(II) Other comprehensive income that will be reclassified into profit
-420,074.47 37,906.34
or loss
1. Other comprehensive income that can be carried over to profit or
loss under equity method
2. Changes in the fair value of other debt investments
3. Amount of reclassified financial assets credited to other
comprehensive income
4. Credit impairment provision of other debt investments
5. Hedging reserve of cash flows
6. Translation difference of foreign currency financial statements -420,074.47 37,906.34
7. Other
Net post-tax other comprehensive income attributable to minority
shareholders
VII. Total comprehensive income 424,737,122.06 450,322,920.48
Total comprehensive income attributable to the owners of the parent
424,737,122.06 450,322,920.48
company
Total comprehensive income attributable to minority shareholders
VIII. Earnings per share (EPS)
(I) Basic EPS 0.67 0.80
(II) Diluted EPS 0.67 0.80
Legal Representative: Jin Xin Person in charge of Accounting: Liu Aihua Principal of Accounting Firm: Bai Xinhong
3. Consolidated cash flow statement
Unit: CNY
Item 2023 2022
I. Cash flows from operating activities:
Cash received from sale of goods and rendering of services 4,188,380,117.80 4,211,265,814.88
Net increase in deposits from customers and interbank
Net increase in loans from the central bank
Net increase in funds borrowed from other financial institutions
Cash received for the premium of the original insurance contract
Net cash received from reinsurance operations
Net increase in policyholders' savings and investment funds
Cash by charging interests, handling charges and commissions
Net increase in borrowed funds
Net increase in funds for repurchase business
Net cash received from receiving from vicariously traded
securities
Refund of tax and levies 144,817,655.80 166,378,968.70
Other cash received from operating activities 564,812,577.22 333,921,658.27
Subtotal of cash inflows of operating activities 4,898,010,350.82 4,711,566,441.85
Cash paid for purchasing goods and receiving services 3,439,988,212.26 3,895,005,310.47
Net increase in customer loans and advances
Net increase in deposits in the central bank and interbank
27
Dajin Heavy Industry Co., Ltd. Annual Report 2023(Summary)
Cash paying the compensation of the original insurance contract
Net increase in the borrowed funds
Cash paid for interests, handling charges and commissions
Cash for paying policy bonus
Cash paid to and for employees 211,590,577.58 159,442,640.32
Tax payments 199,330,375.67 199,263,403.86
Other cash paid for operating activities 238,402,361.51 345,654,572.36
Subtotal of cash outflows from operating activities 4,089,311,527.02 4,599,365,927.01
Net cash flows from operating activities 808,698,823.80 112,200,514.84
II. Cash flows from investing activities:
Cash received from investment recovery 5,411,960,800.00 80,010,000.00
Cash received from investment income 19,892,837.26 2,421,792.93
Net cash recovered from disposal of fixed assets, intangible assets
62,180.00 4,405.00
and other long-term assets
Net cash received from disposal of subsidiaries and other business
67,724,904.19
entities
Other cash received relating to investment activities
Subtotal of cash inflows of investing activities 5,499,640,721.45 82,436,197.93
Cash paid for acquisition and construction of fixed assets,
413,363,384.36 685,996,572.21
intangible assets and other long-term assets
Cash paid for investment 6,501,960,800.00 80,000,000.00
Net increase in pledge loans
Net cash paid for acquiring subsidiaries and other business units
Other cash paid relating to investment activities 7,307,083.06
Subtotal of cash outflows of investing activities 6,915,324,184.36 773,303,655.27
Net cash flow from investment activities -1,415,683,462.91 -690,867,457.34
III. Cash flows from financing activities:
Cash received from investment 3,060,264,246.80
Including: cash received by subsidiaries by absorbing minority
shareholders' investment
Cash received from loans 9,761,853.72 1,013,738,051.76
Cash received from other financing activities
Subtotal of cash inflows from financing activities 9,761,853.72 4,074,002,298.56
Cash paid for debt repayment 974,982,474.39 465,686,540.81
Cash paid for distribution of dividends and profits or payment of 39,534,366.41 65,331,207.79
interests
Including: dividends and profits paid by subsidiaries to minority
shareholders
Cash paid relating to other financing activities 5,818,122.52 45,267,874.92
Subtotal cash outflows of financing activities 1,020,334,963.32 576,285,623.52
Net cash flow from financing activities -1,010,573,109.60 3,497,716,675.04
IV. Impact of exchange rate changes on cash and cash
-56,613,535.33 1,994,575.63
equivalents
V. Net increase in cash and cash equivalents -1,674,171,284.04 2,921,044,308.17
Add: opening balance of cash and cash equivalents 3,575,799,952.92 654,755,644.75
VI. Closing balance of cash and cash equivalents 1,901,628,668.88 3,575,799,952.92
Legal Representative: Jin Xin Person in charge of Accounting: Liu Aihua Principal of Accounting Firm: Bai Xinhong
28
