Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co., Ltd.
Annual Report 202
Section I Definitions ....................................................................................2
Section II Company Profile 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
Financial statements affixed with the signature and seal of legal representative, person in
charge of accounting work and person in charge of accounting agency.
List of Reference Original auditors' report stamped by the accounting firm and signed and stamped with the
Documents certified public accountants.
Original copies of the documents and announcements of the Company published on the
newspaper designated by the CSRC during the reporting period.
* This Report has been prepared in Chinese and translated into English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
Important Notice
Important Notice
I. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives of the
Company hereby guarantee the truthfulness, accuracy and completeness of the contents carried in
this annual report, guarantee no false record, serious misleading statement or great omission carried
in 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 the
Company.
IV. You Ruikai, chairman of the Company, Zhu Xiaohuai, person in charge of accounting work, and
Sun Guangbo, person in charge of accounting agency (accountant in charge) hereby declare that the
financial statements in this annual report are authentic, accurate and complete.
V. Proposal for profit distribution or common reserves capitalizing during the reporting period
reviewed by the board of directors
As audited by Ernst & Young Hua Ming LLP, the Company achieved a net profit attributable to the owners of the parent
company of approximately RMB 520 million in 2023. As at December 31, 2023, the undistributed profit of the parent
company was approximately RMB 2.798 billion. Based on the Company’s performance in 2023, a profit distribution
proposal for 2023 has been proposed: profits will be distributed based on the total share capital registered on the
record date for the implementation of the equity distribution, and a cash dividend of RMB 0.50 (tax included) per 10
shares would be distributed to all shareholders. As of December 31, 2023, the Company’s total share capital consisted of
5,268,353,501 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 profit
distribution proposal has yet to be submitted to the 2023 Annual General Meeting of Shareholders for consideration and
approval.
VI. Risk declaration of forward-looking statements
√ Applicable Not Applicable
The forward-looking descriptions of future plans and development strategies covered in this report do not constitute
substantial 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 related
parties?
No
VIII. Does the Company provide the external guarantees in breach of the stipulated decision- making
procedure?
No
IX. Whether more than half of the directors cannot guarantee the authenticity, accuracy and
completeness of the annual report disclosed by the Company?
No
X. Major Risk Warning
The 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 confronted
with in the future development.
XI. Others
Applicable √ Not Applicable
ANNUAL REPORT 2023
Section I Definitions
I. Definitions
The terms used in this report shall be defined as follows, unless otherwise specified:
Company, the Company, ZPMC Refers to Shanghai Zhenhua Heavy Industries Co., Ltd.
CCCC Refers to China Communications Construction Company Ltd.
CCCG Refers to China Communications Construction Group Co., Ltd.
CCCG HK Refers to CCCG (HK) Holding Limited
Reporting period Refers to From Jan. 1, 2023 to Dec. 31, 2023
Section II Company Profile and Principal Financial Indexes
Section II Company Profile and Principal Financial Indexes
I. Company Information
Company name in Chinese ( )
Abbreviation of the Company name in Chinese
Company name in English SHANGHAI ZHENHUA HEAVY INDUSTRIES CO.,LTD.
Abbreviation of the Company name in English ZPMC
Legal representative of the Company You Ruikai
II. Contact Information
Secretary of the Board of Directors
Name Sun Li
Address No. 3261, Dongfang Road, Shanghai
Telephone 021-50390727
Fax 021-31193316
E-mail IR@ZPMC.COM
III. Basic Information
Registered address No.3470, Pudong South Road, Shanghai
Changes of registered address N/A
Office address No. 3261, Dongfang Road, Shanghai
Postal code of office address 200125
Website http://www.zpmc.com
E-mail IR@ZPMC.COM
IV. Information disclosure and placement location
Shanghai Securities News, www.cnstock.com
Newspaper and website for disclosure of the annual report China Securities Journal, www.cs.com.cn
Hong Kong Wen Wei Po, www.wenweipo.com
Stock exchange website for disclosure of the annual report www.sse.com.cn
Placement location of the annual report Office of the board of directors
V. Stock information
Stock Information
Stock type Stock exchange Stock abbreviation Stock code Stock abbreviation before change
A-share Shanghai Stock Exchange (SSE) Zhenhua Heavy 600320 ZPMC Industries
B-share Shanghai Stock Exchange (SSE) Zhenhua B-share 900947 -
VI. Other relevant information
Name Ernst & Young Hua Ming LLP
Public accounting firm engaged Room 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1 East Changan
Office address
by the Company (domestic) Street, Dongcheng District, Beijing
Signed by the Accountants Gao Chong, Gu Chengli
ANNUAL REPORT 2023
VII. Main accounting data and financial indexes in recent three years
(I) Main accounting data
Unit: Yuan Currency: CNY
Year-on-year
Main accounting data 2023 2022 2021
change (%)
Operating revenue 32,933,263,802 30,191,792,987 9.08 25,977,976,968
Net profit attributable to the shareholders of the listed company 519,978,765 371,937,232 39.80 439,839,245
Net profit attributable to the shareholders of the listed company
274,145,961 414,835,324 -33.91 -440,186,675
after deducting the non-recurring profits and losses
Net cash flows from operating activities 5,184,184,446 2,568,564,023 101.83 2,119,639,518
Year-on-year
At the end of 2023 At the end of 2022 At the end of 2021
change (%)
Net assets attributable to the shareholders of the listed company 15,756,552,794 15,168,470,117 3.88 14,990,218,631
Total assets 84,864,576,091 78,213,168,723 8.50 78,332,081,199
(II) Major financial indexes
Major financial indexes 2023 2022 Year-on-year change (%) 2021
Basic earnings per share (RMB/share) 0.10 0.07 42.86 0.08
Diluted earnings per share (RMB/share) 0.10 0.07 42.86 0.08
Basic earnings per share after deducting non- recurring profits and losses
0.05 0.07 -28.57 -0.09
(RMB/share)
Weighted average ROE (%) 3.37 2.39 +0.98 2.90
Weighted average ROE after deducting non-recurring profits and losses (%) 1.74 2.68 -0.94 -3.48
Explanations about the main accounting data and financial indexes in the past 3 years as at the end of the reporting
period
√ Applicable Not Applicable
The change in net profit attributable to the shareholders of the listed company was mainly due to the increase in profit
resulting from the increase in project delivery of the Company.
The change in net profit attributable to the shareholders of the listed company after deducting the non-recurring profits
and 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 the
Company’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 profits.
The change in the diluted earnings per share was mainly due to the increase in the Company’s profits.
VIII. Differences in accounting data under domestic and overseas accounting standards
(I) Difference in net profits and net assets attributable to the shareholders of the listed company in the
financial statements synchronously disclosed under international and China’s accounting standards
Applicable √ Not Applicable
(II) Difference in net profits and net assets attributable to the shareholders of the listed company in the
financial statements synchronously disclosed under foreign and China’s accounting standards
Applicable √ Not Applicable
Section II Company Profile and Principal Financial Indexes
(III) Explanation for differences between the domestic and foreign accounting standards:
Applicable √ Not Applicable
IX. Main financial data in 2023 by quarter
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan. to Mar.) (Apr. to Jun.) (Jul. to Sep.) (Oct. to Dec.)
Operating revenue 6,019,689,227 7,389,118,395 9,102,390,093 10,422,066,087
Net profit attributable to the shareholders of the listed company 129,537,269 150,348,735 39,740,347 200,352,414
Net profit attributable to the shareholders of the listed company
28,768,092 41,855,152 120,014,924 83,507,793
after deducting the non-recurring profits and losses
Net cash flows from operating activities -923,639,281 2,316,977,981 -219,191,569 4,010,037,315
Explanations about the differences between the quarterly data and the data in periodically disclosed reports
Applicable √ Not Applicable
X. Non-recurring profit and loss items and amount
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Note
Non-recurring profit and loss items Amount in 2023 Amount in 2022 Amount in 2021
(if applicable)
Profit or loss from disposal of non-current assets, including the write-
79,038,662 66,091,456 240,161,569
off portion of the provision of asset impairment
Government subsidies included in current profits and losses except
for government subsidies closely related to the normal operations of
the Company, in line with national policies, and obtained according 107,480,822 106,415,947 81,153,206
to determined standards, with a lasting impact on the Company’s
profits and losses
Profit or loss from changes in fair value of financial assets and
financial liabilities held by non-financial enterprises and from disposal
94,482,602 -214,877,284 643,903,925
of financial assets and financial liabilities, except for effective hedging
operations associated with the Company’s normal operations
Reversal of provision for impairment of receivables subject to
94,986,600
separate impairment test
Other non-operating revenue and expenses except for the above-
19,796,255 27,301,769 12,089,008
mentioned items
Other profit or loss items that conform to the definition of non-
recurring profit or loss
Less: Affected amount of income tax 45,161,118 11,561,380 179,212,457
Affected amount of minority equity (after tax) 9,804,419 16,268,600 13,055,931
Total 245,832,804 -42,898,092 880,025,920
Explanations should be provided to the items not listed in the “Explanatory Announcement on Information Disclosure of
Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss”, but identified as non-recurring profit or
loss items with significant amount by the Company, and the non-recurring profit or loss items listed in the “Explanatory
Announcement on Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or
Loss”, but defined as recurring profit or loss items by the Company.
Applicable √ Not Applicable
ANNUAL REPORT 2023
XI. Items measured at fair value
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Impact on current
Item December 31, 2022 December 31, 2023 Current change
profits
Jiangxi Huawu Brake Co., Ltd. 199,652,466 168,181,696 -31,470,770 -8,980,321
Qingdao Port International Co., Ltd. 348,072,750 248,085,844 -99,986,906 79,238,655
China Railway Signal & Communication Corporation Limited 280,317,612 281,346,332 1,028,720 21,779,691
Shenwan Hongyuan Group Co., Ltd. 870,116 0 -870,116 162,966
COSCO Shipping Holdings Co., Ltd. 40,132,120 14,542,525 -25,589,595 2,959,460
Equity instrument investment 8,438,278 8,438,278 0 0
Hunan Fengri Power & Electric Co., Ltd. 30,657,862 29,951,235 -706,627 335,790
CCCC Highway Bridges National Engineering Research Centre
22,151,670 24,986,999 2,835,329 0
Co., Ltd.
CCCC National Engineering Research Center of Dredging
8,938,170 10,440,495 1,502,325 0
Technology and Equipment Co., Ltd.
Shenyang Weichen Crane Equipment Co., Ltd. 5,205,300 6,617,653 1,412,353 0
Ningbo Weilong Port Machinery Co., Ltd. 5,825,195 15,333,177 9,507,982 0
Shanghai Longchang Lifting Equipment Co., Ltd. 697,422 739,815 42,393 0
Jiangsu Zhangjinggao Bridge Co., Ltd. 0 16,790,000 16,790,000 0
Total 950,958,961 825,454,049 -125,504,912 95,496,241
XII. Others
Applicable √ Not Applicable
Section III Management Discussion and Analysis
Section III Management Discussion and Analysis
I. Discussion and analysis of the performance
In 2023, the Company thoroughly studied and implemented the spirit of the 20th National Congress of the Communist
Party 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 the
requirements under the Company Law, the Articles of Association of the Company, relevant laws, regulations and
normative documents, and fully adopted the “1544” overall development strategy. Focusing on the high-quality
development 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, representing
a year-on-year increase of 9.08%; the net profit 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-related
businesses amounted to USD 1.984 billion, of which the new orders for steel structure business amounted to USD 0.47
billion.
The Company's market development has continued to advance. Rapid and steady progress was made in the port
machinery business; steady development was seen in the offshore engineering business, a breakthrough was made
in the development of steel structure business, and fruitful results were reported in the development of its diversified
businesses. Relying on the fundamental support from internal resources and expansion through external resources,
the Company effectively increased its production capacity, intensified its efforts to implement the production plan and
guarantee the material supply, and improved its performance of project contracts. With sound and steady progress
in the operational quality and efficiency, the Company reported impressive results in reducing costs and increasing
efficiency by open bidding, revitalizing existing assets, strengthening supplier sourcing and development and process
control, and optimizing financial and capital management. The innovative intelligent manufacturing was steadily
advanced, and 297 new patents were granted throughout the year. The Company led and participated in the formulation
of 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 up
its risk management, optimized the risk management system, and launched the “Year of Strengthening Compliance
Management” campaign to further cement the foundation for its stable development.
II. Industrial situation of the Company during the reporting period
The year 2023 witnessed complex global political and economic landscape and uncertain international environment
due to impact from geopolitics and other factors. As an export-oriented enterprise, the Company was still confronted
with the challenges in terms of supply chain security and stability and local development. China has entered a new stage
of comprehensively building a modern socialist country and marching towards the second centenary goal. The basic
trend of the national economy to recover and improve in the long run remains unchanged. The Party Central Committee
relies on the new development philosophy, new development pattern and new development goals to guide overall
arrangements, and strives to build a great country and advance national rejuvenation on all fronts through Chinese
modernization. A new round of scientific and technological revolution and industrial transformation creates favorable
conditions for the Company to better integrate into global development and make full use of international and domestic
markets and resources.
ANNUAL REPORT 2023
From the conditions of the industry where the Company operates, the manufacturing industry was accelerating its
transformation towards high-end, intelligent and green development. In terms of port machinery business, the automated
and intelligent upgrade of global ports brought new opportunities for port upgrading. However, the accelerated group
integration of Chinese ports and the contest with other Chinese port machinery manufacturers led to increasingly fierce
competition and imposed higher requirements for cost and innovation. Mobile machinery products enjoy a huge market
space, featuring a high degree of standardization. In terms of offshore engineering business, the traditional oil and gas
offshore engineering market is gradually recovering, and international oil prices will remain high in the medium and
long term, benefiting the offshore equipment market. In terms of steel structure business, as the nationwide efforts to
build green transportation infrastructure are intensified and Chinese urbanization is accelerating, the market demand for
steel-structured bridges has increased, but the Chinese market 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 as prefabricated buildings,
photovoltaic power generation, elevator installation, and mechanical and electrical engineering.
III. Business of the Company during the reporting period
The 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 branches
worldwide, the Company has more than twenty 60,000t to 100,000t complete transport vessels which can transport
complete large products to the world. At present, the products of the Company have been successfully sold to 107
countries and regions in the world.
The Company upheld the goal of building a world first-class equipment manufacturer with global competitiveness in
technology, management and quality, focused on steady growth, project performance, cost reduction and efficiency
increase, reform and innovation, risk prevention and control and other key work, continued to consolidate the traditional
core business such as port machinery, offshore engineering, shipping, etc., continued to accelerate the development of
“large and heavy” steel structure, offshore wind power, smart parking and other growth-oriented business, multiplies
development and innovation and post-market service business, moderately developed investment and financial 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 of
quay cranes was 70%, maintaining No.1 in the world for 26 consecutive years. The Company signed the NEOM Terminal
Port Machinery Project in Saudi Arabia with the largest single contract value across the year. The pure electric straddle
carriers entered the Maersk market for the first time, and the hybrid straddle carriers successfully broke into the DP
World’s European market.
Steady development was seen in the offshore engineering business. The Company developed the market for design and
manufacturing of offshore equipment, core accessories and upgrading services, successfully signed the first contract for
rotary pile-driving barge project in China and several high-specification floating cranes, successfully entered the gantry
crane market in the nuclear power field, and undertook the construction of the first 1,600-ton gantry crane project for
nuclear power systems in China.
A breakthrough was made in the development of steel structure business. Following the Hong Kong-Zhuhai-Macao
Bridge, Xiamen Xiang’an Bridge, China’s second and Fujian Province’s first fully prefabricated cross-sea bridge, which was
constructed by the Company, was fully opened to traffic and won the “Gold Award of China Steel Structure”; the steel
structure of the main bridge of the West Gate Tunnel in Australia was completed and shipped; and the Cocody Bridge in
Cte d’Ivoire, West Africa, an achievement of the joint construction of the “Belt and Road” initiative, was opened to traffic.
The Company gained a growing influence in the steel bridge industry, with its market position further consolidated.
Fruitful results were reported in the development of diversified businesses. The Company successfully lifted the upper
block of Yuedian Qingzhou Offshore Booster Station, the world’s largest AC booster station with the highest voltage
level, consolidating its leading position in China’s offshore wind farm and shipyard lifting market. Focusing on its primary
responsibilities and primary business, it actively studied and made an arrangement for the port automated storage and
retrieval system (AS/RS) market, and delivered the first AS/RS for commercial vehicles in China. the Company successfully
Section III Management Discussion and Analysis
developed an industry-leading container truck parking garage, and steadily expanded its urban parking business. The
CCCC’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-foot
container shore bridge, full-auto double-trolley shore bridge and two-way anti-swing system, which had promoted
the technical upgrade of the automated container terminals in the world and become the global trendsetter of port
machinery development. The Company had successfully built China's first automated terminal --- Xiamen Ocean Gate
Automated Terminal of COSCO, Asia's first full-auto terminal ---Qingdao Port Full-auto Terminal, and the world's largest
single-berth full-auto terminal - Yangshan Full-auto Terminal (Phase IV) of Shanghai Port. The automated terminal
equipment and systems provided by the Company had been popularized in nearly 60 automated terminal projects at
home and abroad, accounting for more than 70% of automated terminals worldwide. The Company manufactured the
world’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 was
regarded as a highly difficult 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 demonstration
enterprises, the Company has a national enterprise technology center, a national engineering research center of core
equipment for offshore lifting and pipe-laying, a national postdoctoral research center, a provincial and ministerial
academician and expert workstation, a provincial and ministerial key laboratory and a provincial and ministerial
engineering research and development center. As of the end of 2023, the Company had applied for a total of 3,925
patents, with 2,169 valid patents and 61 international authorizations. The Company insisted on the combination
of independent R&D and industry-university-research, established long-term cooperative R&D relationships with
professional 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. By
combining value creation and data-driven approach, it promoted digital construction and intelligent transformation
and upgrading, established four major digital development areas: operation management, design and R&D, production
and 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 Company
continuously introduced new technologies, new products and new services leading the industry development. With a
mastery of the core technologies of large-scale, efficient, green and low-carbon port machinery, the Company launched
new models such as full-truss beam quay cranes and all-electric tire cranes, and built a diversified product matrix. With
a mastery of the core technology of the terminal production control system, the Company also pioneered the Terminal
Operating System (TOS) integrated with the Equipment Control System (ECS), comprehensively enhancing its system
integration capabilities. A new green stand-alone product was released, and the Model S ASC high-speed automated
rail-mounted gantry crane was designed to be ultra light-weight. The Company achieved internationally leading results
in intelligent sensing trackless navigation technology, and globally pioneered the development of unmanned straddle
carrier, automatic guided vehicle and other products and technologies integrating positioning function, thereby making
ports more intelligent. “Tiankun” manufactured by the Company made a breakthrough in the core technology of the
large-sized self-propelled cutter suction dredger, making China’s design and construction technology of the dredger
rank the forefront in the world. The “Independent Research and Development and Industrialization of Large Offshore
Cutter 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 the
National Award for Science and Technology Progress, the “Key Technologies and Applications of Full-Swing Floating Crane
ANNUAL REPORT 2023
for Offshore 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 at
home and abroad with quality products and services. The Company has constantly strengthened the global network
layout of overseas branches and has established several overseas branches in the world, established good partnership
and solid cooperation foundation with local internationally renowned enterprises and upstream and downstream
enterprises of the industry, and continuously exerted its localization advantages. Based on its global operation and
service network, the Company has provided integrated and lean operation and lifecycle service for global customers in
a fast, accurate and comprehensive way. The Company has a service team composed of more than 1,000 high-quality
professionals on the site all over the world, which can provide efficient solutions and perfect spare parts service support
and supply goods to the world in the shortest time. Terminexus, a wholly-owned subsidiary of the Company, has built the
first digital supply chain platform in port machinery industry.
V. Performance during the reporting period
During the reporting period, the Company’s operating revenue was steadily rising and its profitability of primary business
improved significantly. The Company realized operating revenue of approximately RMB 32.933 billion, representing a
year-on-year increase of 9.08%; the net profit 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-year
increase of 42.86%.
(I) Analysis of the performance
1. Analysis table of changes in the related items in profit statement and cash flow statement
Unit: Yuan Currency: CNY
Item Amount in the current period Amount in the same period of the last year Change (%)
Operating revenue 32,933,263,802 30,191,792,987 9.08
Operating cost 28,480,385,794 26,145,431,986 8.93
Selling and distribution expenses 211,361,193 176,805,664 19.54
General and administrative expenses 849,183,436 835,690,168 1.61
Financial expenses 546,050,450 775,079,877 -29.55
Research and development expenditures 1,311,556,665 1,118,337,091 17.28
Net cash flows from operating activities 5,184,184,446 2,568,564,023 101.83
Net cash flows from investing activities -181,631,626 -83,719,029 N/A
Net cash flows from financing activities -2,391,719,903 -4,723,159,537 N/A
Taxes and surcharges 291,299,625 174,759,457 66.69
Investment income 67,909,400 204,359,358 -66.77
Income from fair value change -27,339,814 -276,050,580 N/A
Assets impairment losses -428,844,200 -92,510,638 N/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 operating
revenue.
The change in selling and distribution expenses was mainly due to the Company’s increased efforts in market expansion
and marketing.
The change in general and administrative expenses was mainly due to the increase in corporate consulting fees.
The change in financial 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 RMB
against USD.
Section III Management Discussion and Analysis
The change in research and development expenditures was mainly due to the increase in the expensed expenditures for
research 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 the
Company’s sale of goods and provision of services.
The change in net cash flows from investing activities was mainly due to the increase in cash paid by the Company for the
purchase and construction of fixed assets.
The change in net cash flows from financing 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 tax
and additional tax resulting from the increase in the VAT amount benefiting from the sound business development of the
Company.
The change in investment income was mainly due to the decrease in the income from investment into associated
enterprises 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 by
the Company.
The change in assets impairment loss was mainly due to the increase in the Company’s provision for inventory
depreciation.
Detailed description of major changes in business type, profit composition or profit sources of the Company in the
current period
Applicable √ Not Applicable
2. Analysis of revenue and cost
√ Applicable Not Applicable
The 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 product
Year-on- year Year-on-year Year-on-year
Operating Gross profit
Product Operating cost change in operating change in change in gross
revenue rate (%)
revenue (%) operating cost (%) profit rate (%)
Port machinery 21,236,864,182 17,769,268,798 16.33 2.44 2.07 +0.3
Heavy-duty equipment 5,422,715,054 5,139,018,033 5.23 75.75 80.21 -2.35
Engineering construction projects 1,528,578,218 1,551,493,106 -1.50 -5.29 -4.12 -1.24
Steel structure and related income 3,166,048,520 2,883,527,923 8.92 15.92 9.46 +5.38
Marine transport and others 1,388,086,251 1,064,259,854 23.33 -25.50 -29.12 +3.92
Main business by region
Year-on- year Year-on-year Year-on-year
Operating Gross profit
Region Operating cost change in operating change in change in gross
revenue rate (%)
revenue (%) operating cost (%) profit rate (%)
Chinese Mainland 18,330,998,550 16,450,665,191 10.26 15.64 20.55 -3.65
Chinese Mainland (export sales) 964,530,587 746,929,906 22.56 -0.37 -18.46 +17.18
Europe 1,096,740,543 1,231,226,688 -12.26 25.05 42.05 -13.43
Asia (excluding Chinese Mainland) 6,029,644,681 4,952,941,475 17.86 -23.36 -26.71 +3.77
North America 2,386,479,118 2,039,827,384 14.53 9.40 5.40 +3.25
South America 1,183,625,912 901,491,572 23.84 97.22 108.39 -4.08
Africa 2,032,771,314 1,515,235,643 25.46 48.53 27.92 +12.01
Oceania 717,501,520 569,249,855 20.66 129.95 106.71 +8.92
ANNUAL REPORT 2023
Explanations 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 income
from the export sales of this Company to the overseas subsidiaries of the Company and then sales to the related projects
of the domestic customers.
(2). Analysis table of cost-volume-profit relationship
Applicable √ Not Applicable
(3). Fulfillment of major purchasing contracts and sales contracts
√ Applicable Not Applicable
Fulfillment of major sales contracts signed by the reporting period
√ Applicable Not Applicable
Unit: 100 million Yuan Currency: CNY
Amount Explanation
Total Total Amount Normally
performed for abnormal
Subject-matter of contract The opposite party contracted amount to be performed
during the performance
value performed performed or not
reporting period of the contract
Contract for ECT Terminal of East Chairman of Sri Lanka
2.8256 0.90268 0 1.92292 Yes
Port, Sri Lanka Ports Authority
General Contract for Intelligent Honggang Wharf Co.,
Handling System of No. 9-10 Ltd. in Guangxi Qinzhou
Berth in Dalanping South Port Tariff Free Por t Area 14.3734 11.60311 6.05375 2.77029 Yes
Operation Section, Dalanping Legal representative:
Port Area, Qinzhou Port Wen Furong
Procurement of double-trolley
quayside container cranes for
Phase I project of the Container
Hu Chaoyang 12.93 3.879 0 9.051 Yes
Terminal Project in East Operation
Section of Yantian Port Area,
Shenzhen Port (secondary)
Note: Unit of contracted value of Sri Lanka Project: USD 100 million
Fulfillment of major purchasing contracts signed by the reporting period
Applicable √ Not Applicable
(4). Cost analysis table
Unit: Yuan
By product
Proportion of the
Proportion in Amount in the Year-
Items of cost Amount in the one in the same Explanatory
Product total cost in the same period of on-year
structure current period period of the last notes
current period (%) the last year change (%)
year in total costs (%)
Raw material cost,
Normal operating
Port machinery labor cost and 17,769,268,798 62.55 17,409,218,335 66.92 2.07
fluctuations
production cost
Raw material cost,
Heavy-duty Normal operating
labor cost and 5,139,018,033 18.09 2,851,639,122 10.96 80.21
equipment fluctuations
production cost
Engineering Raw material cost,
Normal operating
construction labor cost and 1,551,493,106 5.46 1,618,116,053 6.22 -4.12
fluctuations
projects production cost
Steel structure Raw material cost,
Normal operating
and related labor cost and 2,883,527,923 10.15 2,634,320,687 10.13 9.46
fluctuations
income production cost
Marine Raw material cost,
Normal operating
transport and labor cost and 1,064,259,854 3.75 1,501,571,151 5.77 -29.12
fluctuations
others production cost
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). Significant 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 Applicable
The sales to the top 5 customers were RMB 5,283,790,600, accounting for 16.04% of the total annual sales; the sales to the
related 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 the
top five customers, or the Company heavily relied on a few number of customers during the reporting period.
Applicable √ Not Applicable
B. Main suppliers of the Company
√ Applicable Not Applicable
The purchases from the top 5 suppliers were RMB 4,324,267,200, accounting for 15.37% of total annual purchases; the
purchases from the related parties among the top 5 suppliers were RMB 1,741,147,900, accounting for 6.19% of total
annual purchases.
Indicate whether sales to a single supplier accounted for over 50% of the total sales, there was any new supplier in the top
five suppliers, or the Company heavily relied on a few number of suppliers during the reporting period.
Applicable √ Not Applicable
Other description
None
3. Expenses
√ Applicable Not Applicable
The change in selling and distribution expenses was mainly due to the Company’s increased efforts in market expansion
and marketing.
The change in general and administrative expenses was mainly due to the increase in corporate consulting fees.
The change in financial 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 RMB
against USD.
The change in research and development expenditures was mainly due to the increase in the expensed expenditures for
research and development projects of the Company.
4. R&D investments
(1). Detail table of R&D investments
√ Applicable Not Applicable
Unit: Yuan
Current expensed R&D investments 1,311,556,665
Current capitalized R&D investments 0
Total R&D investments 1,311,556,665
ANNUAL REPORT 2023
Proportion of total R&D investments in operating revenue (%) 3.98
Proportion of capitalized R&D investments (%) 0.00
(2). Detail table of R&D employees
√ Applicable Not Applicable
Number of R&D employees in the Company 1,649
Proportion of number of R&D employees in the total employees of the Company (%) 19.86
Educational structure of R&D employees
Educational structure category Number
Doctor 10
Master 272
Undergraduate 1,207
Junior College 138
Senior high school and below 22
Age structure of R&D employees
Age structure category Number
Under 30 (exclusive) 236
30-40 (inclusive of 30 and exclusive of 40) 588
40-50 (inclusive of 40 and exclusive of 50) 693
50-60 (inclusive of 50 and exclusive of 60) 132
60 and above 0
(3). Explanation
Applicable √ Not Applicable
(4). Reasons for any significant change in the composition of R&D personnel and the impact on the future development of
the Company
Applicable √ Not Applicable
5. Cash flows
√ Applicable Not Applicable
The change in the net cash flows from operating activities was mainly due to the increase in cash received from the
Company’s sale of goods and provision of services.
The change in net cash flows from investing activities was mainly due to the increase in cash paid by the Company for the
purchase and construction of fixed assets.
The change in net cash flows from financing activities was mainly due to the repayment of loans by the Company.
(II) Explanation for the significant changes in profits 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
Proportion of the Proportion of the
Amount at Amount at the end
amount at the end of amount at the end of Year- on- year
Item the end of the of the previous Notes
the current period in the previous period in change (%)
current period period
total assets (%) total assets (%)
Monetary funds 5,105,078,436 6.02 2,397,047,713 3.06 112.97
Notes receivable 14,122,031 0.02 56,114,657 0.07 -74.83
Receivables financing 965,569,122 1.14 439,912,428 0.56 119.49
Advances to suppliers 1,313,834,063 1.55 951,212,422 1.22 38.12
Non-current assets due within
1,341,408,631 1.58 900,213,411 1.15 49.01
one year
Other current assets 476,726,381 0.56 279,067,341 0.36 70.83
Long-term receivables 1,457,182,459 1.72 2,402,265,565 3.07 -39.34
Other equity instrument
104,859,374 0.12 73,475,619 0.09 42.71
investment
Short-term borrowings 4,781,640,779 5.63 1,793,682,952 2.29 166.58
Contract liabilities 19,230,649,196 22.66 13,348,150,197 17.07 44.07
Tax payable 324,641,134 0.38 238,103,875 0.30 36.34
Deferred income tax liabilities 133,272,270 0.16 99,240,972 0.13 34.29
Other non-current liabilities 247,185,330 0.29 181,805,207 0.23 35.96
Other description
Monetary 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 financing 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 due
within 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 sound
business development of the Company.
Deferred income tax liabilities increased mainly due to the increase in the Company’s taxable temporary difference.
Other non-current liabilities increased mainly due to the increase in the Company’s output tax to be written off.
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 REPORT 2023
3. Particulars about main restricted assets as at the end of the reporting period
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Book value at the end of the period Reason for restriction
Special funds for overseas escrow account, deposits for letter of credit and letter
Monetary funds 72,908,531
of guarantee etc.
Fixed assets 2,447,188,251 Collateral for loan
Long-term receivables 1,435,459,418 Hypothecation for loan
Other non-current assets 3,616,427,706 Hypothecation for loan
Contract assets 146,326,607 Hypothecation for loan
Accounts receivable 254,958,240 Hypothecation for loan
Intangible assets 1,024,431,906 Hypothecation for loan
4. Other description
Applicable √ Not Applicable
(IV) Analysis of operational information of the industry
√ Applicable Not Applicable
In terms of port machinery business, the automated and intelligent upgrade of global ports brought new opportunities
for port upgrading. However, the accelerated group integration of Chinese ports and the contest with other Chinese
port machinery manufacturers led to increasingly fierce competition and imposed higher requirements for cost and
innovation. Mobile machinery products enjoy a huge market space, featuring a high degree of standardization.
In terms of offshore engineering business, the traditional oil and gas offshore engineering market is gradually recovering,
and international oil prices will remain high in the medium and long term, benefiting the offshore equipment market.
In terms of steel structure business, as the nationwide efforts to build green transportation infrastructure are intensified
and Chinese urbanization is accelerating, the market demand for steel-structured bridges has increased, but the Chinese
market 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 as
prefabricated buildings, photovoltaic power generation, elevator installation, and mechanical and electrical engineering.
(V) Analysis of investment
Overall analysis of external equity investment
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Investment amount by the end of reporting period 2,773,273,393
Changes in investment amount -172,127,215
Investment amount in the same period of the last year 2,945,400,608
Change in investment amount (%) -6
Section III Management Discussion and Analysis
1. Significant equity investment
√ Applicable Not Applicable
Unit: ’0,000 Yuan Currency: CNY
Whether
the subject Progress Impact on
Name of Statement Expected Lawsuit
is mainly Investment Investment Shareholding Whether to Fund Partner (if Investmentterm as at the current Disclosure Disclosure
invested Main business item (if earnings involved
engaged in manner amount ratio consolidate source applicable) (if any) balance profit or date (if any) index (if any)
entity applicable) (if any) or not
investment sheet date loss
business
R&D, design,
procurement,
manufacturing,
Zhenhua sales, maintenance, Shanghai See
Completed
Haitong transformation and Self- Yichui Extraordinary
Newly the company December 7,
Intelligent upgrading of, and Yes 4,000 80% Yes owned Machinery 0 No Announcement
established registration 2023
Equipment after-sales service funds Technology No. 2023-051 for
procedures.
Co., Ltd. for reach stackers, Co., Ltd. details
s t a c k e r fo r k l i f t s
and their derivative
products.
Total / / / 4,000 / / / / / / / / / /
2. Significant non-equity investment
√ Applicable Not Applicable
Xiong’an Zhenhua Co., Ltd. (“Xiong’an Zhenhua”) is a wholly-owned subsidiary of the Company. To further optimize its
resource allocation and better serve the development of primary business, the Company planned to reduce Xiong’an
Zhenhua’s registered capital by RMB 1.9 billion. After the capital reduction, Xiong’an Zhenhua’s registered capital would
be reduced from RMB 2 billion to RMB 0.1 billion. The capital reduction would not lead to the change in the ownership
structure of Xiong’an Zhenhua, and the Company would still hold 100% of its stock equity. The above-mentioned
matters were reviewed and approved at the 21st meeting of the 8th Board of Directors of the Company. See the relevant
announcement (Extraordinary Announcement No. 2023-025) disclosed by the Company on the website of the Shanghai
Stock Exchange (www.sse.com.cn) and designated information disclosure media on June 8, 2023 for details. Xiong’an
Zhenhua completed the registration of change of registered capital. After the capital reduction, its registered capital is
RMB 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: CNY
Accumulated fair
Profit or loss on Impairment Amount Amount sold/
Asset Beginning value changes Other Ending
changes in fair provision for purchased in redeemed in the
class balance recognized in changes balance
values for the period the period the period period
equity
Stock 869,045,064 -27,339,814 -129,548,853 712,156,397
Total 869,045,064 -27,339,814 -129,548,853 712,156,397
Securities investment
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Accumulated
Profit or loss Amount Profit or
Initial Book value at fair value Amount Book value
Securities Stock Stock Fund on changes in purchased loss on Accounting
investment the beginning changes sold in the at the end of
Variety code abbreviation source fair values for in the investments subject
cost of the period recognized period the period
the period period in the period
in equity
Held-for-
Self-
trading
Stock 06198 Qingdao Port 308,515,588 owned 348,072,750 21,560,783 -121,547,689 61,235,401 248,085,844
financial
funds
assets
ANNUAL REPORT 2023
Accumulated
Profit or loss Amount Profit or
Initial Book value at fair value Amount Book value
Securities Stock Stock Fund on changes in purchased loss on Accounting
investment the beginning changes sold in the at the end of
Variety code abbreviation source fair values for in the investments subject
cost of the period recognized period the period
the period period in the period
in equity
Held-for-
Self-
trading
Stock 03969 CRSC 617,854,000 owned 280,317,612 1,028,720 - 20,920,710 281,346,332
financial
funds
assets
Held-for-
Self-
trading
Stock 300095 Huawu Stock 11,071,606 owned 199,652,466 -30,577,696 -893,074 17,010,720 168,181,696
financial
funds
assets
Held-for-
COSCO Self-
trading
Stock 601919 SHIPPING 420,000,000 owned 40,132,120 -18,681,505 -6,908,090 21,654,242 14,542,525
financial
HOLDINGS funds
assets
Held-for-
Self-
Shenwan trading
Stock 000166 200,000 owned 870,116 -670,116 -200,000 665,553 -
Hongyuan financial
funds
assets
Total / / 1,357,641,194 / 869,045,064 -27,339,814 -129,548,853 121,486,626 712,156,397 /
Statement of securities investment
Applicable √ Not Applicable
Private equity investment
Applicable √ Not Applicable
Derivatives investment
Applicable √ Not Applicable
4. Progress on the major assets restructuring during the reporting period
Applicable √ Not Applicable
(VI) Sales of significant 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 General
Equipment Co., Ltd. planned to dispose of part or all of the held-for-trading financial assets at the right time according
to market conditions, and authorize the Company’s management to dispose of them at its discretion according to stock
market conditions. The above-mentioned matters regarding sale of stocks were reviewed and approved at the 22nd
meeting 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 designated
information disclosure media on June 29, 2023 for details. See “(V) Analysis of investment” in “Management Discussion
and 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 million
per vessel. The above-mentioned matters regarding sale of stocks were reviewed and approved at the 28th meeting of
the 8th Board of Directors and the 2023 Third Extraordinary General Meeting of Shareholders of the Company. See the
relevant announcement (Extraordinary Announcement No. 2023-047) disclosed by the Company on the website of the
Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on November 14, 2023 for
details. 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: CNY
Registered Net profit/
Company Name Main product or services Asset size
capital (loss)
Installation of heavy port equipment, engineering vessels, heavy
Nantong Zhenhua Heavy metal structure and its parts; manufacturing and installation of gear
Equipment Manufacturing box, container yard crane, super heavy-duty bridge steel structure, 2,500,000,000 11,151,663,589 88,169,483
Co., Ltd. heavy marine machinery equipment; leasing of cranes; specialized
contracting of steel structures
Sales of port loading and unloading machine, bulk cargo and
container machine, port engineering vessels (including floating
Shanghai Zhenhua Heavy
engineering crane), material handling mechanical products and
Industries Port Machinery 2,184,730,000 2,327,805,549 45,353,983
parts, sales and technical services, installation and maintenance,
General Equipment Co., Ltd.
technical consultation of all types of machine and equipment, key
parts of the raw materials and accessories equipment
Construction and installation of large-scale port equipment,
engineering vessels, offshore heavy equipment, mechanical
Shanghai Zhenhua Heavy
equipment, gear box for wind power generation equipment; large-
Industries Group (Nantong) 738,878,329 2,683,890,044 135,889,441
sized reverse branch, transmission mechanism, dynamic positioning,
Transmitter Co., Ltd.
large-sized anchor windlass, offshore oil platform lifting device and
components; design and manufacturing of the accessories
Shanghai Zhenhua Por t
Design, manufacturing and sales of port machinery, engineering
Machinery (Hong Kong) HKD 50,000,000 14,168,563,066 27,708,656
vessel, steel structure and other parts
Co., Ltd.
Greenland Heavylift
Marine transport USD 91,975,158 2,648,850,512 48,199,340
(Hongkong) Limited
ZPMC Qidong Marine
Machinery manufacturing 303,000,000 1,573,572,492 -126,200,596
Engineering Co., Ltd.
CCCC Financial Leasing Co.,
Finance lease 9,000,000,000 58,613,990,978 1,209,298,301
Ltd.
China Communications
Construction of port, waterway, highway and bridge USD 50,000,000 255,246,414 1,088,291
construction USA. Inc
Fabrication and installation of steel structure; foundation
Jiangsu Longyuan Zhenhua construction, equipment installation and maintenance of offshore
Marine Engineering Co., wind power facilities; construction and maintenance of submarine 260,000,000 4,398,271,080 2,932,423
Ltd. cable system; marine engineering construction, equipment
installation and maintenance; leasing of installation equipment
(VIII) Particulars about structured entities controlled by the Company
Applicable √ Not Applicable
VI. 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 new
opportunities. As emphasized at the Central Economic Work Conference, we must push ahead with transforming the
growth model, making structural adjustments, improving quality, and enhancing performance, thus opening up new
space for the Company’s high-quality development. Secondly, China accelerates the construction of a new development
pattern, which has brought new opportunities, further expands the domestic regional market, and speeds up its efforts to
go global at a high standard, in conjunction with the accelerated construction of “five centers” - international economic
center, financial center, trade center, shipping center and sci-tech innovation center, offering new chances for the
Company to optimize its structural layout and allocation of resource factors. Thirdly, the improvement and upgrading of
economic structure and industrial transformation present new opportunities. New urbanization, regional integration, new
ANNUAL REPORT 2023
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 traditional
equipment manufacturing market is heating up, and profit margins are being narrowed, it becomes the core of market
competition 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, intelligent
manufacturing and lean production. China is unswervingly following a new path to industrialization in developing
the equipment manufacturing industry, driven by advanced industrial bases and modern industrial chains, setting the
promotion 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 of
industrial bases and improve the comprehensive integration, thus accelerating China’s historical transformation from a
manufacturing 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 competitive
technology-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-class
enterprise, seize the global and national development opportunities, consolidate and bring into full play the enterprise’s
own advantages, and fully achieve the goal. Work hard on “five types of business”, solidly promote “four main lines”, and
focus 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 of
modern technologies such as 5G and artificial intelligence, increase the efforts in tackling problems in key technologies,
consolidate the long-term partnership with global important customers, and transform and upgrade from product
services 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 the
marine economy, synchronously accelerate the market promotion and the technical innovation of offshore engineering
products, seize the opportunities of cooperation with important customers, continue to implement various projects
such as engineering vessels, crane vessels, wind power installation (operation and maintenance) vessels and so on, and
improve the level of production performance and cost control of offshore engineering projects. In terms of shipping
business, based on upgrading the fleet management and guaranteeing the transportation of the Company’s products,
it will seize the opportunities of shipping recovery, offshore wind power construction and overseas industrialized
infrastructure construction to improve the industrial competitiveness and the scale efficiency of the enterprise.
(2) Increase resources investment to develop the mature new business. By seizing the opportunities of “new
infrastructure Construction”, “double-carbon” action and urban transformation, the Company increases resources
investment to develop mature new business such as steel structure, offshore wind power and sky parking, gives play to
its advantages in fabrication and transportation of steel structure, increase the layout of internal and external production
and manufacturing resources to accelerate the implementation of the benchmark projects in key national regions and
overseas steel structure markets. By taking the opportunity of national new energy development, and leveraging its
unique competitiveness in the field of transportation and installation of offshore wind power equipment, the Company
strengthens the professional cooperation with outstanding enterprises in the industry, further excavates the potential
of 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 operation
market. The Company brings into full play the demonstration effects of the benchmark parking projects built or in
progress, further gives play to the advantages in equipment and technology, and gradually explores the construction of
intelligent parking full-scene solutions and the whole industry chain service model.
(3) Actively explore new fields 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 a
higher market share in the field of renewal and reconstruction of port machinery, and improve the scale benefit of after-
market services through advance planning and comprehensive operation. Based on the renewal and renovation of port
machinery, with Terminexus online spare parts service platform as the foundation, the Company will gradually build a
comprehensive digital service platform integrating design, consultation, procurement and service, and construct a new
business growth pole with digital service as the main carrier.
(4) Moderately develop investment and financing businesses related to the primary business. By leveraging its brand,
resources, low financing cost and other advantages, the Company identifies the specific advantages, specific regions and
specific partners to carry out investment and financial business in the right time with a focus on the primary business. It
actively participates in the equity investment of important customers of domestic ports and listed suppliers of supporting
parts related to the Company’s primary business, and invests in the projects with low risk and stable benefits such as
offshore 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 businesses
such as prefabricated building in a steady and orderly manner. As to the prefabricated building business, the Company
actively implements the prefabricated steel-structured benchmark projects by exploiting its advantages in design and
fabrication of steel structures. In the marine economy, people’s livelihood engineering, new energy and other fields, the
Company should strengthen the situation analysis, speed up the efforts to foster differentiated advantages, upgrade
the business qualification, and actively follow up and implement the projects with distinct advantages and considerable
benefits.
(III) Operation plan
√ Applicable Not Applicable
Adhering to the overall requirements of the “Year of High-quality Development and Improvement”, the Company will
promote new achievements in its high-quality development by adopting the “people-centered, port-based, steel-guided
and quality-backed” approach and adhering to the principles of pursuing progress while ensuring stability, promoting
stability 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 the
opportunity 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 intelligent
transformation centered around replacement of core equipment components, replacement of production line, and
replacement of manpower with machine, and promote the digital connection among organizations, devices and key
processes; accelerate green development, build an efficient, clean, low-carbon and circular green manufacturing system,
and create a resource-effective 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, firmly establish the philosophy of “coordinating efforts all
over the Company as on a single chessboard”, optimize the organizational structure and operational mechanism of
the headquarters, and rationalize the relationships among responsibilities, powers and rights of organizations at all
levels; improve the integrated operation system running through all areas, aspects and processes such as scientific
research, design, procurement, manufacturing, transportation, installation, operation and maintenance, and enhance the
integrated service capabilities of equipment manufacturing; improve the after-sales service system, adopt a customer-
ANNUAL REPORT 2023
centered approach, establish a lifecycle management system, raise service awareness, optimize customer experience, and
increase service efficiency.
3. Strengthen market development
On the basis of consolidating the advantages of traditional business, the Company will intensify efforts to develop market
segments and incremental markets, increase R&D and market development efforts for green and low-carbon equipment,
automated transformation of terminals and electric mobile machinery, continue to promote standardized and modular
construction of products, and accelerate the rollout of lightweight port machinery products; continue to develop the
offshore engineering market, dig into the development of special construction vessels and other segments, consolidate
the core competitiveness of offshore engineering flagship products, and duly advance the development of the
international offshore engineering market; build core competitiveness in the steel structure market, vigorously expand
the market for heavy and extra-large steel structures, improve qualifications, and strengthen comprehensive reform and
innovation in cost, production capacity, technology, model, management and service; speed up the exploration of related
emerging industries, further investigate new energy, port automated storage and retrieval system (AS/RS) and port
machinery 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 the
industry cycle of the shipping industry. The complexity and difficulties of world economic situation still exist, with
geopolitics, food security, energy security, fragile macroeconomics, growing inflation and rising debt crisis continuing to
affect global trade and investment, as well as the stability of international financial markets. The Company will strengthen
the scientific study and judgment of the macro political and economic situation, identify the systematic risks in time, and
make 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 of
overseas business brings a certain scale of foreign exchange revenue and expenditure to the Company. The Company will
pay close attention to changes in exchange rates, optimize the structure of foreign currency assets and liabilities, adhere
to 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 on
operating 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 Company
will continue to deepen supply chain management in all respects, integrate internal and external resources, promote the
systematic construction of supply chain, focus on improving the resilience and security level of the supply chain, enhance
the independent controllability of supply, accelerate the localization rate of key systems and important supporting parts
such as electric control assembly, cable reel and elevator, and build the core competitiveness and driving force for the
development of the Company.
(V) Others
Applicable √ Not Applicable
VII. Explanation of circumstances and reasons for non-disclosure by the Company in
consideration 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 Applicable
During the reporting period, the Company continuously improved the level of corporate governance, continuously
improved the quality of information disclosure, further strengthened investor relations management, and safeguarded the
legitimate rights and interests of the Company and all shareholders effectively in strict accordance with the requirements
of relevant laws, regulations and management documents, ensuring its sustainable and stable development. In 2023, the
Company held a total of 14 meetings of the Board of Directors, 6 meetings of the Board of Supervisors and 4 meetings
of the General Meeting of Shareholders, and the procedures of convening, holding, voting and disclosure of all meetings
were 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 governance
structure. 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 and
regulations and the Company’s actual situation, laying the foundation for the standardized and efficient operation of
each special committee; drafted the “Follow-up, Implementation and Post-Evaluation System for Resolutions of Board
of Directors” to clarify the organizational structure of the Follow-up, Implementation and Post-Evaluation System for
Resolutions of Board of Directors and its responsibilities, procedures and methods to ensure the implementation and
efficient execution of the resolutions of Board of Directors; dynamically changed the lists of proceedings and decisions
of 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 of
information disclosure. In 2023, the Company continued to consolidate the information disclosure responsibilities of
relevant entities, stepped up departmental coordination on information disclosure, actively organized special training
on information disclosure and related transactions, and improved its professional capabilities for information disclosure.
During the reporting period, the Company strictly fulfilled its compliance disclosure obligations in accordance with the
requirements of the “Rules Governing the Listing of Stocks on Shanghai Stock Exchange” and the “Management Measures
for Corporate Information Disclosure”, and increased voluntary disclosure. A total of 108 announcements were issued
during 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 understood
language, which could help investors make value judgments and investment decisions.
The Company continued to improve investor relations management and further enhance communication with the
capital market. In 2023, the Company formulated the “Annual Investor Relations Management Plan” to define annual
goals, and introduced the “Work Manual for Investor Relations Management” to regulate work standards. The Company
communicated 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” and
other means; regular performance briefings were held, and roadshows and reverse roadshows were actively organized, so
that the Company’s chairman, president, CFO, independent directors, board secretary and heads of relevant departments
could communicate closely with investors, introduce the Company to the capital market, interpret the Company’s
investment 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 as
the CSRC’s requirements on corporate governance. If yes, please explain.
Applicable √ Not Applicable
ANNUAL REPORT 2023
II. Specific measures taken by the controlling shareholder and actual controller to guarantee
the asset, personnel, financial, organizational and business independence of the Company,
as well as solutions, progress and subsequent plans when the Company’s independence is
intervened
Applicable √ Not Applicable
Indicate whether the controlling shareholder, the actual controller, or any entity under their control is engaged in the
same or similar business with the Company. Please explain the impact of horizontal competition or any significant change
to horizontal competition on the Company, solutions taken, progress and subsequent plans.
Applicable √ Not Applicable
III. Brief introduction to the general meeting of shareholders
Query index of the Date of disclosure
Session of
Convening date website specified for for publishing Resolutions
meeting
publishing resolutions resolutions
Reviewed and approved the “Proposal on Reviewing the
2022 Annual www.sse.com.cn; 2022 Work Report of Board of Directors”, the “Proposal on
General Meeting June 28, 2023 enter the stock code to June 29, 2023 Reviewing the Work Report of Independent Directors in 2022”
of Shareholders search and other proposals (See Extraordinary Announcement No.
2023-027 for details)
Reviewed and approved the “Proposal on the Company’s
2023 First
www.sse.com.cn; Compliance with the Conditions for Issuing A Shares to
Extraordinary
August 21, 2023 enter the stock code to August 22, 2023 Specific Targets”, the “Proposal on the Company’s Plan for
General Meeting
search Issuing A Shares to Specific Targets” and other proposals (See
of Shareholders
Extraordinary Announcement No. 2023-035 for details)
2023 Second Reviewed and approved the “Proposal on Reviewing the
www.sse.com.cn;
Extraordinary Additional Election of Mr. You Ruikai as a Director of the
October 24, 2023 enter the stock code to October 25, 2023
General Meeting Company” (See Extraordinary Announcement No. 2023-045
search
of Shareholders for details)
2023 Third
www.sse.com.cn; Reviewed and approved the “Proposal on Reviewing the
Extraordinary
November 29, 2023 enter the stock code to November 30, 2023 Sale of Ship Assets by Subsidiaries” (See Extraordinary
General Meeting
search Announcement No. 2023-049 for details)
of Shareholders
Extraordinary general meetings of shareholders convened at the request of preference shareholders with resumed voting
rights
Applicable √ Not Applicable
Particulars about the general meeting of shareholders
√ Applicable Not Applicable
In 2023, the Company convened 4 general meetings of shareholders, which were convened and held in accordance with
relevant laws and rules including the “Company Law of the People’s Republic of China”, the “Rules for General Meetings
of Shareholders of Listed Companies” and the “Articles of Association”; the qualifications of the attendees and the
convener were lawful and effective; the voting procedures and results of the meetings were lawful and effective; and the
resolutions of the general meetings of shareholders were lawful and effective.
Section IV Corporate Governance
IV. Directors, Supervisors and Senior Executives
(I) Changes in shares held by current and resigned directors, supervisors and senior executives during
the reporting period and their remunerations
√ Applicable Not Applicable
Unit: Share
Total
Remuneration
Number remuneration
Number of Change received from
of shares before tax from
Starting date Expiry date shares held in shares Reason of any of the
Name Post Sex Age held at the the Company
of tenure of tenure at the end in the change Company’s
beginning during the
of the year year related parties
of the year reporting period
or not
(RMB’0,000)
October 24, June 27,
Director
2023 2024
February 27, June 27,
You Ruikai Chairman Male 57 0 0 0 17.20 Yes
2024 2024
October 24, February 27,
Vice chairman
2023 2024
September 15, June 27,
Director
Ou 2022 2024
Male 54 0 0 0 89.29 No
Huisheng General manager August 30, June 27,
(president) 2022 2024
June 27,
Director June 28, 2021
2024
Zhu Executive general December 12, June 27,
Male 55 0 0 0 88.12 No
Xiaohuai manager 2022 2024
June 27,
CFO July 12, 2021
2024
August 25, June 27,
Wang Cheng Director Male 51 0 0 0 78.05 No
2021 2024
Zhang December 28, June 27,
Director Male 62 0 0 0 9 Yes
Jianxing 2022 2024
Sheng Independent June 27,
Male 54 June 28, 2021 0 0 0 12 No
Leiming director 2024
Independent June 27,
Zhang Hua Male 51 June 28, 2021 0 0 0 12 No
director 2024
Zhao Independent June 27,
Male 48 June 28, 2021 0 0 0 12 No
Zhanbo director 2024
Independent June 27,
Xia Lijun Male 48 June 28, 2023 0 0 0 6 No
director 2024
August 25, June 27,
Supervisor
2021 2024
Zhang Lijie Male 54 0 0 0 77.75 No
August 30, June 27,
Chief supervisor
2021 2024
June 27,
Zhao Jizhu Supervisor Male 46 June 28, 2023 0 0 0 0 Yes
2024
June 27,
Wei Wei Employee supervisor Male 52 June 28, 2021 0 0 0 76.39 No
2024
October 29, June 27,
Liu Feng Vice president Male 53 0 0 0 79.95 No
2021 2024
June 27,
Zhang Jian Vice president Male 55 July 12, 2021 0 0 0 76.01 No
2024
June 27,
Vice president July 12, 2021
Shan 2024
Male 60 0 0 0 71.85 No
Jianguo February 20, June 27,
Chief engineer
2023 2024
February 20, June 27,
Vice president
2023 2024
Li Ruixiang Male 49 0 0 0 74.94 No
June 27,
Chief economist July 12, 2021
2024
ANNUAL REPORT 2023
Total
Remuneration
Number remuneration
Number of Change received from
of shares before tax from
Starting date Expiry date shares held in shares Reason of any of the
Name Post Sex Age held at the the Company
of tenure of tenure at the end in the change Company’s
beginning during the
of the year year related parties
of the year reporting period
or not
(RMB’0,000)
Chief legal counsel,
secretary of the June 27,
Sun Li Male 52 July 12, 2021 0 0 0 72.97 No
board, chief 2024
compliance officer
Lu February 20, June 27,
Vice president Male 49 0 0 0 74.94 No
Hanzhong 2023 2024
Shen February 20, June 27,
Vice president Female 47 0 0 0 90.57 No
Qiuyuan 2023 2024
Liu Director, chairman February 26,
Male 55 June 28, 2021 0 0 0 66.50 No
Chengyun (resigned) 2024
Independent June 28,
Bai Yunxia Female 51 June 28, 2021 0 0 0 6 No
director (resigned) 2023
April 28,
You Hua Supervisor (resigned) Male 61 June 28, 2021 0 0 0 0 Yes
2023
Vice president February 20,
Liu Qizhong Male 60 July 12, 2021 0 0 0 24.61 No
(resigned) 2023
Chief engineer February 20,
Fei Guo Male 62 July 12, 2021 0 0 0 19.30 No
(resigned) 2023
Total / / / / / / 1,135.44 /
Name Main working experiences
Born in 1967, male, bachelor, EMBA master, senior engineer. He began his career in July 1990. From April 2007, he successively served as
deputy general manager of the Investment Division of CCCC Second Harbor Engineering Co., Ltd. (“CCCC SHEC”), vice chairman, general
manager and chairman of CCCC Yunfu New Port Co., Ltd., general manager of the Investment Division of CCCC SHEC, deputy secretary
You Ruikai of the Party Committee general manager of the Investment Division of CCCC SHEC. From August 2013, he served as deputy general
manager 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 as
secretary of the Party Committee and chairman of CCCC SHEC. Currently, he is a director and chairman of the Company.
Born in 1970, male, PhD, senior economist, accountant, CPA. He began his career in 1992 and successively served as the president of
Zhuhai Fuhua Group Co., Ltd. (renamed as Zhuhai Port Co., Ltd. in September 2010), director of Zhuhai Fuhua Group Co., Ltd. (Zhuhai Port
Co., Ltd.), director and deputy secretary of the Party Committee of Zhuhai Port Holdings Group Co., Ltd., general manager of Zhuhai Port
Holdings Group Co., Ltd., chairman, party secretary, and legal representative of Zhuhai Port Holdings Group Co., Ltd., legal representative
Ou Huisheng
of Zhuhai Port Co., Ltd., chairman of the board of directors of Zhuhai Port Co., Ltd., chairman of Tongyu Heavy Industry Co., Ltd., and
chairman of Qingdao Tianneng Heavy Industry Co., Ltd. He has been the general manager (president) of the Company since August
30, 2022 and a director of the Company since September 15, 2022. Currently, he is a director and general manager (president) of the
Company.
Born in 1969, male, master of MBA, senior accountant. He began his career in July 1991 and successively served as the section member
and 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 CCCC
Zhu Xiaohuai
Shanghai Dredging Co., Ltd., and the director, chief accountant and Party committee standing member of CCCC Shanghai Dredging
Co. Ltd. He has been the executive general manager of the Company since December 12, 2022 and is currently a director, the executive
general manager and CFO of the Company.
Born in 1973, male, master of engineering, senior political worker. He started working in August 1994 and successively served as the vice
secretary or secretary of league committee, and vice secretary or secretary of Party Branch of No. 2 Engineering Co., Ltd. of CCCC Third
Harbor Engineering Co., Ltd.; vice director and director of Organization Department of CCCC Third Harbor Engineering Co., Ltd.; secretary
Wang Cheng of the Party Committee and vice general manager of No. 2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.; chairman
of board of supervisors, vice secretary of the Party Committee, secretary of Committee for Discipline Inspection and chairman of labor
union of CCCC Third Harbor Engineering Co., Ltd.; secretary of Commission for Disciplinary Inspection, supervisor and chairman of board
of supervisors of the Company. Currently, he is a director and the chairman of labor union of the Company.
Born in 1962, male, bachelor, senior accountant. He began his career in August 1985 and successively served as a cadre in the Finance
Department of CCCC Shanghai Dredging Co. Ltd., deputy chief of the Finance Section of Jiuzhou Dredging Engineering Company under
CCCC Shanghai Dredging Co. Ltd., deputy director and director of the Planning and Finance Department of CCCC Shanghai Dredging
Co. Ltd., member of the Party Committee, deputy general manager and chief financial officer of CHEC Dredging Co., Ltd., secretary of
Zhang Jianxing
the Party Committee, deputy general manager and chief financial officer 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., and
secretary of the Party Committee and chairman of the board of directors of CCCC Financial Leasing Co., Ltd. He has been a director of the
Company since December 28, 2022. Currently, he is a director of the Company.
Section IV Corporate Governance
Name Main working experiences
Born in 1970, male, doctor of laws, first grade lawyer. He successively served as a lawyer assistant and lawyer in Shanghai Foreign Trade
Sheng Leiming Law Firm, a teacher of civil and commercial law in East China University of Political Science and Law, partner and chief lawyer of Shanghai
Zhongmao Law Firm, and a lawyer of Guantao Law Firm. Currently, he is an independent director of the Company.
Born in 1973, male, PhD in Economics, associate professor of finance. He successively served as a researcher, lecturer, assistant professor
Zhang Hua
and associate professor at China Europe International Business School. Currently, he is an independent director of the Company.
Born in 1976, male, PhD. He had served as a teacher in School of Software & Microelectronics, Peking University since 2005 and now he is
Zhao Zhanbo a 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.
Born in 1976, male, PhD, professor of accounting, certified public accountant. From July 2006 to March 2011, he successively served as
lecturer, master tutor, professor and doctoral tutor of the School of Accounting, Shanghai University of Finance and Economics. From
March 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 Economics
Xia Lijun and Management, Shanghai Jiao Tong University. He is also a member of the Professional Accounting Education Steering Committee of
the Ministry of Education, a member of the China National MPAcc Education Steering Committee, a director of the Accounting Society
of 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 the
Ministry of Finance and other talent programs. Currently, he is an independent director of the Company.
Born in April 1970, male, master, senior engineer and senior political engineer. He started working in August 1991 and successively served
as 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 Discipline
Inspection Commission, and deputy general manager of CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch; director of the Party
Zhang Lijie
Committee 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 the
Party 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.
Born in 1978, male, master, senior accountant. He successively served as chief accountant of CCCC Road and Bridge Chongqing
Fufengshi Highway Development Co., Ltd., deputy general manager of the Finance and Accounting Department, deputy director of
the General Manager’s Office (in charge of work) and chief accountant of the Construction Management Branch of CCCC Road and
Bridge International Co., Ltd., director and general manager of CCCC Qingyuan Investment and Development Co., Ltd., assistant general
Zhao Jizhu
manager and deputy general manager of the Audit Department of CCCG, member of the Standing Committee of the CPC and deputy
general manager of CCCG Real Estate, and secretary of CPC Working Committee, chairman and general manager of CCCC Dingxin. From
August 2022 to present, he is a chief expert and deputy general manager of the Audit Department of CCCG and CCCC. Currently, he is a
supervisor of the Company.
Born in February 1972, male, bachelor, senior political worker. He started working in August 1990, and successively served as secretary
of the General Youth League branch of the Technical School of Shanghai Port Machinery Manufacturing Plant, secretary of the Youth
League Committee, chairman of the labor union of the metal processing workshop, and secretary of the Party branch of the gearbox
workshop of Shanghai Port Machinery Manufacturing Plant; manager of the Human Resources Department, chairman of the Labor Union
and Deputy Secretary of the Party branch of ZPMC Nanhui Base, deputy secretary of the temporary general Party branch, chairman of
Wei Wei the Labor Union and general office manager of Shanghai Port Machinery Heavy Industry Co., Ltd.; head of the first discipline inspection
team assigned by the Discipline Inspection Committee, director of the Trade Union Office and deputy general manager (in charge of
work) of the Administrative Affairs Department of ZPMC. Since May 2021, he has been the vice chairman of the Labor Union and director
of the Labor Union Office of ZPMC. From January 2024 to present, he serves as director (director, general manager, head) of the Work
Department of Party Committee (United Front Work Department of Party Committee, Corporate Culture Department and Labor Union
Office). Currently, he is the employee supervisor and vice chairman of the Labor Union of the Company.
Born in 1971, male, master, senior engineer and senior economist. He started working in July 1995, and successively served as deputy
director (in charge of work) and director of the Second Division of the Department of Industry and Trade of CCCC; director and
general manager assistant of the Equipment Manufacturing Marine Heavy Industry Department of CCCC; deputy general manger of
Liu Feng
the Equipment Manufacturing Marine Heavy Industry Department, deputy general manger of Science and Technology Equipment
Department, deputy director of Chief Engineer Office of CCCC; deputy general manager (deputy director) of the Department of Science,
Technology and Digitalization (Chief Engineer Office) of CCCG and CCCC. Currently, he is the vice president of the Company.
Born in 1969, male, MBA, senior engineer. He successively served as the technician, production planner and assistant director of No. 2
Panel beater of Shanghai Port Machinery Manufacturing Plant, director of gearbox branch of Shanghai Port Machinery Manufacturing
Zhang Jian Plant, vice director and member of the Party committee of Shanghai Port Machinery Manufacturing Plant, vice general manager of
Shanghai Port Machinery Heavy Industry Co., Ltd., general manager and president assistant of ZPMC Operation Office. Currently, he is the
vice president of the Company.
Born in 1964, male, bachelor, senior engineer. He started working in July 1988, and successively served as the technician in Shanghai Port
Machinery Manufacturing Plant, the engineer and chief engineer of ZPMC Machinery Office, general manager and vice chief engineer of
No.4 design office of design company, vice director and director of ZPMC Machinery Office, manager of budget assessment department
Shan Jianguo
and the dean of ZPMC Land-based Heavy Industry Research & Design Institute, and the president assistant of the Company. He has been
the 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 REPORT 2023
Name Main working experiences
Born in 1975, male, bachelor, senior economist. He successively served as the director of Technical Process Department, trainee manager
of Manufacturing Department and manager of Quality Assurance Department of Zhangjiagang Base of Shanghai Port Machinery Plant;
project leader, office manager, vice director of Quality Safety Office of ZPMC Quality Inspection Company, vice general manager and
Li RuiXiang
general manager of mechanical supporting base, secretary of Party Branch, vice chief economist, general manager of budget assessment
department, general manager of Material and Equipment Procurement Department and president assistant of the Company. He has
been the vice president of the Company since February 20, 2023. Currently, he is the vice president and chief economist of the Company.
Born in 1972, male, EMBA, senior engineer. He successively served as the project leader and vice manager of Operation Department, vice
Sun Li director of Operation Office and director of Off-Shore Office, general manager assistant, vice president and director of the Company.
Currently, he is the chief legal counsel, secretary of the board and chief compliance officer of the Company.
Born in 1975, male, bachelor, Bachelor of Engineering, senior engineer. He started working in July 1997 and successively served as the
supervisor of Process Department and deputy manager of Process Department of the Company, deputy general manager of Changxing
Lu Hanzhong Base, general manager of Changxing Base, deputy chief craftsman and manager of Process Department of the Company, and general
manager of Steel Structure Division. He has been the vice president of the Company since February 20, 2023. Currently, he is the vice
president and chief craftsman of the Company.
Born in 1977, female, bachelor of economics, senior economist. She started working in August 1999, and successively served as the
project supervisor of the Business Department, general manager of the Project Management Department of the Business Office, general
Shen Qiuyuan manager of the Port Machinery Business Department, deputy chief economist of the Company, general manager of the investment
group and general manager of the Strategic Development Department of the Company. She has been the vice president of the Company
since February 20, 2023. Currently, she is the vice president of the Company.
Born in 1964, male, bachelor, senior economist. He started working in August 1983 and successively served as the manager of Operating
Department and the vice president of the Company, and serves as the director of the Company since March 2004. He resigned as a
Liu Qizhong
director 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.
Born in 1969, male, master, senior economist, senior engineer. He began his career in August 1989, and successively served as deputy
director of CCCC Fourth Harbor Engineering Co., Ltd., vice general manager of CCCC Investment Co., Ltd., secretary of the Party
committee, chairman and general manager of CCCC Nansha Investment Development Co., Ltd. and CCCC Urban Investment Holding Co.,
Liu Chengyun Ltd., general manager and secretary of CPC Working Committee of CCCC South China regional headquarters, general manager of the
(resigned) Strategic Development Department of China Communications Construction Company Ltd. (CCCC), general manager of the Investment
Division of CCCC, director of the board office and general manager of the Strategic Development Department of China Communications
Construction Group Co., Ltd. (CCCG) and CCCC. He resigned as the chairman and director of the Company on February 26, 2024 due to
job adjustment. Currently, he is the deputy general manager of CCCG.
Born in October 1973, female, PhD in accounting from Xiamen University, post-doctor in accounting of Guanghua School of
Management, Peking University, professor of accounting, doctoral tutor. She started working in 1995, and successively served as the
Bai Yunxia
assistant engineer of Kaiyuan Group under Xi’an Jiaotong University, lecturer of School of Economics and Management of Tongji
(resigned)
University, research scholar of CKGSB. She resigned as an independent director of the Company due to the expiration of her term on June
28, 2023.
Born in 1963, male, bachelor, senior accountant. He successively served as the assistant director and deputy director of Finance
Department of China Harbour Engineering Company Limited, and finance manager of CHUWA Bussan Company Limited (Japan); general
manager of the Finance Department and director of Capital Settlement Center, deputy chief accountant and general manager of Finance
You Hua Department of China Harbour Engineering Company (Group); general manager of Capital Department and director of Capital Settlement
(resigned) Center of CCCG; director and chief accountant of China Harbour Engineering Company Limited; director, vice general manager and chief
accountant 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 personal
reasons on April 28, 2023.
Born in 1962, male, EMBA, professor-level senior engineer. He successively served as the engineer of Shanghai Port Machinery Plant,
Fei Guo electrical engineer of the Technology Department, director of No. 5 Electrical Office, vice chief engineer, chief engineer, director of
(resigned) Development Office and vice president of ZPMC. He resigned as the chief engineer of the Company on February 20, 2023 due to personal
reasons.
Notes to other circumstances
Applicable √ Not Applicable
(II) Incumbency of current and resigned directors, supervisors and senior executives during the
reporting period
1. Position at the shareholder entity
√ Applicable Not Applicable
Section IV Corporate Governance
Starting date of Expiration date
Name of in-service staff Name of shareholding entity Position
tenure of tenure
China Communications Construction
Liu Chengyun Vice general manager July 2023
Group Co., Ltd.
Deputy general manager (deputy director),
China Communications Construction
Zhao Jizhu chief expert of Audit Department (Dispatched August 2022
Group Co., Ltd.
Supervisor Office, Audit Center)
Statement of the position held in shareholding entity
2. Statement of the position held in other entities
√ Applicable Not Applicable
Name of in- Position held in other Starting date of Expiration date
Name of other entities
service staff entities tenure of tenure
CCCC Highway Bridges National Engineering Research Centre
Ou Huisheng Director January 2023
Co., Ltd.
Zhu Xiaohuai CCCC Financial Leasing Co., Ltd. Director May 2018
Zhang Jian CCCC Shanghai Equipment Engineering Co., Ltd. Chairman March 2017
CCCC Highway Bridges National Engineering Research Centre
Vice general manager December 2019
Co., Ltd.
Shanghai Ocean Engineering Equipment Manufacturing
Director November 2020
Shan Jianguo Innovation Center Co., Ltd.
CCCC National Engineering Research Center of Dredging
Director November 2020
Technology and Equipment Co., Ltd.
Sinoocean Offshore Assets Management Limited Director September 2021
Lu Hanzhong Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. Executive director December 2022 November 2023
Zhenhua Marine Energy (HK) Co., Ltd. Chairman August 2021
Shen Qiuyuan
Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd. Director August 2021
Zhang Jianxing CCCC Industrial Investment Holding Company Ltd. Director December 2022
School of Software & Microelectronics, Peking University Professor 2015
Zhao Zhanbo
Yingda Taihe Life Insurance Co., Ltd. Independent director January 2022
China Europe International Business School Vice professor July 2016
Jiangsu Liyan Technology Co., Ltd. Independent director April 2017
Zhang Hua Zhejiang Hengwei Battery Co., Ltd. Independent director May 2017 April 2023
Nanjing Sunlord Electronics Corporation Ltd. Independent director November 2017
Chengdu Qushui Science and Technology Co., Ltd. Independent director December 2019
All China Lawyers Association Vice president December 2011
Guantao Law Firm Lawyer 2016
Tsingtao Brewery Co., Ltd. Independent director May 2020
Sheng Leiming
Shanghai United Imaging Healthcare Co., Ltd. Independent director December 2020
Shanghai Foreign Service Holding Group Co., Ltd. Independent director September 2021
Kweichow Moutai Co., Ltd. Independent director June 2022
Director of Accounting
Shanghai Jiao Tong University March 2011 March 2023
Department
Shanghai Jiao Tong University Professor, doctor tutor March 2011
Huatai Baoxing Fund Management Co., Ltd. Independent director July 2016 March 2024
Zhejiang Sunrise Garment Group Co., Ltd. Independent director October 2018
Xia Lijun Shanghai Bacai Information Technology Co., Ltd. Executive director April 2018
Shenzhen Huitai Medical Equipment Co., Ltd. Independent director November 2019
East Money Information Co., Ltd. Independent director January 2020 January 2023
Shanghai Tongji Science & Technology Co., Ltd. Independent director April 2020
Orient Securities Co., Ltd. Independent supervisor March 2021
Jiangsu Recbio Technology Co., Ltd. Independent director June 2021
Statement of the position held in other entities
ANNUAL REPORT 2023
(III) Remuneration of directors, supervisors and senior executives
√ Applicable Not Applicable
In accordance with the regulations of “Articles of Association”, the remuneration of
Decision-making process for the remuneration of directors,
directors and supervisors is subject to the general meeting of shareholders and the
supervisors and senior executives
remuneration of the senior executives is approved by the board of directors.
Do directors recuse themselves when the Board of Directors
Yes
discusses matters relating to their remuneration
Recommendations made by the Remuneration and Appraisal The Remuneration and Appraisal Committee maintained that the remuneration
Committee or the special meeting of independent directors on policy and compensation for directors, supervisors and senior executives of the
the remuneration of directors, supervisors and senior executives Company during the reporting period were legal, compliant and reasonable.
Basis for deciding the remuneration of directors, supervisors and The basic salary plus performance bonus is assessed in combination with the
senior executives quantitative index of production and operation, etc.
See the “Changes in shares held by current and resigned directors, supervisors
Actual payout of remuneration for directors, supervisors and
and senior executives during the reporting period and their remunerations” in this
senior executives
section for details.
Total remuneration actually obtained by all directors, supervisors
RMB 11,354,400
and senior executives at the end of reporting period
(IV) Change in directors, supervisors and senior executives
√ Applicable Not Applicable
Name Post Change Reason of change
You Ruikai Director, Chairman Elected Job adjustment
Xia Lijun Independent director Elected Additional director, elected by the general meeting of shareholders
Zhao Jizhu Supervisor Elected Job adjustment
Shan Jianguo Chief engineer Engaged Job adjustment
Li Ruixiang Vice president Engaged Job adjustment
Lu Hanzhong Vice president Engaged Job adjustment
Shen Qiuyuan Vice president Engaged Job adjustment
Liu Chengyun Director, Chairman Resigned Job adjustment
Bai Yunxia Independent director Resigned Expiry of term of office
You Hua Supervisor Resigned Retired for personal reasons
Liu Qizhong Vice president Resigned Personal reasons
Fei Guo Chief engineer Resigned Personal 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 meeting Convening date Resolutions
17th meeting of the 8th Reviewed and approved the “Proposal on Reviewing the Appointment of Mr. Shan Jianguo as Chief
February 20, 2023
Board of Directors Engineer” and other proposals (See Extraordinary Announcement No. 2023-002 for details)
18th meeting of the 8th Reviewed and approved the “Proposal on Reviewing the 2022 Work Report of Board of Directors” and
March 30, 2023
Board of Directors other proposals (See Extraordinary Announcement No. 2023-003 for details)
19th meeting of the 8th
April 28, 2023 Reviewed and approved of the “Proposal on Reviewing the 2023 First Quarterly Report of the Company”
Board of Directors
Section IV Corporate Governance
Session of meeting Convening date Resolutions
Reviewed and approved the “Proposal on the Company’s Compliance with the Conditions for Issuing
20th meeting of the 8th
May 25, 2023 A Shares to Specific Targets” and other proposals (See Extraordinary Announcement No. 2023-012 for
Board of Directors
details)
21st meeting of the 8th Reviewed and approved the “Proposal on Reviewing the 2023 Plan for Issuing Asset-Backed Securities”
June 7, 2023
Board of Directors and other proposals (See Extraordinary Announcement No. 2023-024 for details)
22nd meeting of the 8th Reviewed and approved the “Proposal on Reviewing the Revision of the Fixed Asset Management
June 28, 2023
Board of Directors Measures” and other proposals (See Extraordinary Announcement No. 2023-029 for details)
Reviewed and approved the “Proposal on Reviewing the Adjustment to Members of Special Committees
23rd meeting of the 8th
August 3, 2023 under the Board of Directors” and other proposals (See Extraordinary Announcement No. 2023-031 for
Board of Directors
details)
24th meeting of the 8th Reviewed and approved the “Proposal on Reviewing the Full Text and Summary of 2023 Semi-Annual
August 28, 2023
Board of Directors Report of the Company” and other proposals (see Extraordinary Announcement No. 2023-036 for details)
Reviewed and approved the “Proposal on Reviewing and Revising the Implementation Rules and List of
25th meeting of the 8th
September 22, 2023 Proceedings of Specialized Committees of the Board of Directors” and other proposals (See Extraordinary
Board of Directors
Announcement No. 2023-040 for details)
Reviewed and approved the “Proposal on Reviewing the Additional Election of Mr. You Ruikai as
26th Meeting of the 8th
October 7, 2023 a Director and the Election of Him as Vice Chairman of the Company” and other proposals (See
Board of Directors
Extraordinary Announcement No. 2023-042 for details)
27th Meeting of the 8th
October 30, 2023 Reviewed and approved the “Proposal on Reviewing the 2023 Third Quarterly Report of the Company”
Board of Directors
28th Meeting of the 8th Reviewed and approved the “Proposal on Reviewing the Sale of Ship Assets by Subsidiaries” and other
November 13, 2023
Board of Directors proposals (See Extraordinary Announcement No. 2023-046 for details)
29th Meeting of the 8th Reviewed and approved the “Proposal on Reviewing the Foreign Investment for the Establishment of a
December 6, 2023
Board of Directors Joint Venture” and other proposals (See Extraordinary Announcement No. 2023-050 for details)
Reviewed and approved the “Proposal on Reviewing the Long-Term Equity Incentive Plan (Draft) of
30th Meeting of the 8th
December 26, 2023 Shanghai Zhenhua Heavy Industries Co., Ltd. and Its Summary” and other proposals (see Extraordinary
Board of Directors
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
Attendance at the
Attendance at Board Meetings general meeting
of shareholders
Independent
Times of
Director name director or Times of Personal Times of
meetings Times of Times of
not attendance Times of absence for two attendance at the
should be personal attendance by
through a absence consecutive general meeting
attended in attendance telecommunication
proxy times of shareholders
this year
You Ruikai No 4 4 1 0 0 No 0
Ou Huisheng No 14 14 5 1 0 No 3
Zhu Xiaohuai No 14 14 5 0 0 No 4
Wang Cheng No 14 14 6 1 0 No 2
Zhang Jianxing No 14 14 7 1 0 No 2
Sheng Leiming Yes 14 14 5 0 0 No 4
Zhang Hua Yes 14 14 8 0 0 No 4
Zhao Zhanbo Yes 14 14 6 0 0 No 3
Xia Lijun Yes 9 9 4 0 0 No 3
Liu Chengyun
No 14 14 7 0 0 No 2
(resigned)
Bai Yunxia
Yes 5 5 3 0 0 No 1
(resigned)
ANNUAL REPORT 2023
Explanations for personal absence from the meeting for two consecutive times
Applicable √ Not Applicable
Times of the board meetings convened in current year 14
Including: times of on-site meetings
Times of meetings convened through telecommunication 4
Times of meetings convened on-site and through telecommunication 10
(II) Objections raised by directors on matters of the Company
Applicable √ Not Applicable
(III) Others
Applicable √ Not Applicable
VII. Specialized committees under the Board of Directors
√ Applicable Not Applicable
(I) Members of specialized committees under the board of directors
Category of specialized committee Members
Audit committee Xia Lijun, Zhao Zhanbo, Sheng Leiming, Zhang Hua
Nominating committee You Ruikai, Wang Cheng, Zhao Zhanbo, Sheng Leiming, Zhang Hua
Remuneration and appraisal committee Zhao Zhanbo, Zhang Jianxing, Zhang Hua, Xia Lijun
Strategy committee You Ruikai, Ou Huisheng, Zhang Jianxing, Zhao Zhanbo, Xia Lijun
(II) 8 meetings convened by the audit committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of duties
Reviewed the “Proposal on Reviewing the Full Text and
All proposals at this meeting were
March 24, 2023 Summary of 2022 Annual Report of the Company” and other
unanimously reviewed and approved.
proposals
Reviewed the “Proposal on Reviewing the 2023 First Quarterly All proposals at this meeting were
April 25, 2023
Report of the Company” unanimously reviewed and approved.
Reviewed the “Proposal on the Company’s Issuance of A
All proposals at this meeting were
May 24, 2023 Shares to Specific Targets Involving Related Transactions” and
unanimously reviewed and approved.
other proposals
Reviewed the “Proposal on Reviewing the Company’s
All proposals at this meeting were
June 27, 2023 2022 Comprehensive Risk Management Report and 2023
unanimously reviewed and approved.
Significant Risk Assessment Report” and other proposals
Reviewed the “Proposal on Reviewing the Full Text and
All proposals at this meeting were
August 25, 2023 Summary of 2023 Semi-Annual Report of the Company” and
unanimously reviewed and approved.
other proposals
Reviewed the “Proposal on Reviewing and Revising the
All proposals at this meeting were
September 20, 2023 Implementation Rules and List of Proceedings of the Audit
unanimously reviewed and approved.
Committee of the Board of Directors”
Reviewed the “Proposal on Reviewing the 2023 Third All proposals at this meeting were
October 27, 2023
Quarterly Report of the Company” unanimously reviewed and approved.
Reviewed the “Proposal on Reviewing the Provision of All proposals at this meeting were
December 4, 2023
Guarantee for a Korean Subsidiary” and other proposals unanimously reviewed and approved.
Section IV Corporate Governance
(III) 5 meetings convened by the nominating committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of duties
Reviewed the “Proposal on Reviewing the Appointment of Mr. All proposals at this meeting were
February 20, 2023
Shan Jianguo as Chief Engineer” and other proposals unanimously reviewed and approved
Reviewed the “Proposal on Reviewing the Additional Election All proposals at this meeting were
June 5, 2023
of Independent Directors into the 8th Board of Directors” unanimously reviewed and approved
Reviewed the “Proposal on Reviewing the Formulation of the
All proposals at this meeting were
June 27, 2023 List of Proceedings of the Nomination Committee of the Board
unanimously reviewed and approved
of Directors”
Reviewed the “Proposal on Reviewing and Revising the
All proposals at this meeting were
September 20, 2023 Implementation Rules and List of Proceedings of the
unanimously reviewed and approved
Nomination Committee of the Board of Directors”
Reviewed the “Proposal on Reviewing the Additional Election
All proposals at this meeting were
October 4, 2023 of Mr. Rui Kai as a Director and the Election of Him as Vice
unanimously reviewed and approved
Chairman of the Company”
(IV) 6 meetings convened by the remuneration and appraisal committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of duties
Reviewed the “Proposal on Reviewing the Remuneration of All proposals at this meeting were
March 27, 2023
Directors of the Company for 2022” and other proposals unanimously reviewed and approved
Reviewed the “Proposal on Reviewing the Formulation of
All proposals at this meeting were
June 27, 2023 the List of Proceedings of the Remuneration and Appraisal
unanimously reviewed and approved
Committee of the Board of Directors” and other proposals
Reviewed the “Proposal on Reviewing the Responsibility
Agreement for 2023 Annual Business Performance of the
All proposals at this meeting were
August 25, 2023 Management Team and the Responsibility Agreement for
unanimously reviewed and approved
Business Performance of the New Management Team during
Its Term 2022-2024” and other proposals
Reviewed the “Proposal on Reviewing and Revising the
Implementation Rules and List of Proceedings of the All proposals at this meeting were
September 20, 2023
Remuneration and Appraisal Committee of the Board of unanimously reviewed and approved
Directors” and other proposals
Reviewed the “Proposal on Reviewing the Results of
All proposals at this meeting were
December 4, 2023 Assessment on the 2022 Annual Business Performance of the
unanimously reviewed and approved
Management Team” and other proposals
Reviewed the “Proposal on Reviewing the Long-Term Equity
All proposals at this meeting were
December 21, 2023 Incentive Plan (Draft) of Shanghai Zhenhua Heavy Industries
unanimously reviewed and approved
Co., Ltd. and Its Summary” and other proposals
(V) 7 meetings convened by the strategy committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of duties
Reviewed the “Proposal on Reviewing the Company's 2023 All proposals at this meeting were
March 27, 2023
Investment Plan” unanimously reviewed and approved
Reviewed the “Proposal on the Company’s Compliance with
All proposals at this meeting were
May 24, 2023 the Conditions for Issuing A Shares to Specific Targets” and
unanimously reviewed and approved
other proposals
Reviewed the “Proposal on Reviewing the 2023 Plan for All proposals at this meeting were
June 5, 2023
Issuing Asset-Backed Securities” and other proposals unanimously reviewed and approved
Reviewed the “Proposal on Reviewing the Disposal of Equity All proposals at this meeting were
June 27, 2023
Assets at the Right Time” and other proposals unanimously reviewed and approved
ANNUAL REPORT 2023
Other performance
Convening date Contents Important comments and suggestions
of duties
Reviewed the “Proposal on Reviewing the Intention of ZPMC’s
Wholly-Owned Subsidiary to Introduce Strategic Investors and All proposals at this meeting were
September 20, 2023
Employee Stock Ownership Platform to Increase Its Capital” unanimously reviewed and approved
and other proposals
Reviewed the “Proposal on Reviewing the Sale of Ship Assets All proposals at this meeting were
November 10, 2023
by Subsidiaries” and other proposals unanimously reviewed and approved
Reviewed the “Proposal on Reviewing the “Foreign Investment All proposals at this meeting were
December 4, 2023
for the Establishment of a Joint Venture” and other proposals unanimously reviewed and approved
(VI) Particulars about objections
Applicable √ Not Applicable
VIII. Description of the risks found by the board of supervisors
Applicable √ Not Applicable
The 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 the
end of the reporting period
(I) Particulars about employees
Number of in-service employees of the parent company 2,882
Number of in-service employees of the main subsidiaries 5,422
Total of in-service employees 8,304
Number of retired employees required to be paid by the parent company and its major subsidiaries
Functions
Category Number of staff
Production staff 3,498
Sales staff 283
Technical staff 3,307
Financial staff 183
Administrative staff 1,033
Total 8,304
Education background
Education level Number (person)
Master and above 769
Undergraduate 4,532
Junior College 1,659
Below Junior College 1,344
Total 8,304
(II) Remuneration policies
√ Applicable Not Applicable
In line with the Company’s development strategy, the Company improved the remuneration distribution incentive system
and performance assessment system and established and improved the performance assessment system based on the
different properties and characteristics of each entity and division; promoted the salary incentive system closely linking
the performance distribution with the unit or division performance, value contribution, industrial characteristics, growth
Section IV Corporate Governance
phase and similar factors, and comprehensively linking the staff performance with position duty and value contribution,
and thus initially established the distribution mode integrating with the market.
(III) Training plan
√ Applicable Not Applicable
In line with the Company’s development strategy, the Company improved the staff training system. According to
the training plan, the Company implemented the training in a planned way to improve the business skill level and
professional quality of staff at various levels.
(IV) Labor outsourcing
√ Applicable Not Applicable
Total of labor outsourcing hours 5,606,280 hours
Total of labor outsourcing remuneration RMB 312,669,000
X. Proposal for profit distribution or convention of capital reserves into bonus shares
(I) Formulation, implementation or adjustment of cash dividend distribution policies
√ Applicable Not Applicable
According to the requirements of the Circular on Further Implementation of Relevant Matters Concerning Cash Dividend
Distribution of Listed Companies (ZJF [2012] No. 37) issued by the CSRC, as proposed by the 10th meeting of the
Company’s 5th Board of Directors held on August 21, 2012, amendments were made to the Articles of Association of the
Company concerning profit distribution and cash dividends policy, and as a result, the dividend distribution standard
and proportion became clearer, related decision making process and mechanism were complete, and the minority
shareholders’ legal rights and interests were fully protected, giving them the opportunity to fully express their views and
demands. 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 fully
communicated with investors on the profit 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 profit
distribution plan for 2022. The profit distribution plan for 2022 of the Company was as follows: no profit distribution was
made, and no capital reserve was converted into share capital. Details of the above profit distribution matters are set
out in the “Announcement of the Annual Profit Distribution Plan for 2022” published by the Company on the Shanghai
Securities 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 profit attributable to the owners of the parent
company of approximately RMB 520 million in 2023. As at December 31, 2023, the undistributed profit of the parent
company was approximately RMB 2.798 billion. To deliver a reasonable return to shareholders and strengthen their
investment confidence, a profit distribution proposal for 2023 has been proposed based on the Company’s performance
in 2023: profits will be distributed based on the total share capital registered on the record date for the implementation
of the equity distribution, and a cash dividend of RMB 0.50 (tax included) per 10 shares would be distributed to all
shareholders. As of December 31, 2023, the Company’s total share capital consisted of 5,268,353,501 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 profit distribution proposal has yet
to 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 REPORT 2023
In compliance with the Company’s Articles of Association or the relevant resolutions of general meeting of shareholders √ Yes No
Specific and clear dividend standards and ratios √ Yes No
Complete decision-making procedure and mechanism √ Yes No
Independent directors have faithfully performed their duties and played their due role √ Yes No
Non-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 profit is positive in the reporting period and the profit of the parent company available for
distribution to the shareholders is positive but the Company does not represent the plan or proposal
for profit distribution in cash, the Company shall disclose in detail the reasons and the purpose and use
plan of the undistributed profit
Applicable √ Not Applicable
(IV) Proposal for profit distribution and for converting capital reserve to share capital for the reporting
period
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Number of bonus shares per 10 shares (share) —
Number of dividends per 10 shares (RMB) (taxes included) 0.5
Number of shares converted by capital reserve per 10 shares (share) —
Amount of cash dividends (including tax) 263,417,675.05
Net profits attributable to common shareholders of the listed company in the annual consolidated statement of dividends 519,978,765
Ratio of net profits attributable to the listed company common shareholders in consolidated statements (%) 50.66
Amount of cash dividends from repurchase of shares —
Total amount of cash dividends (tax included) 263,417,675.05
Ratio of the total amount of cash dividends to the net profits attributable to common shareholders of the listed company
50.66
in the consolidated statement (%)
XI. The Company’s equity incentive plan, employee stock ownership plan or other incentives
to the employees and their impacts
(I) Related incentives disclosed in provisional announcement, without progress or change in follow-up
implementation
√ Applicable Not Applicable
Summary of events Query index
On December 26, 2023, the Company held the 30th meeting of the 8th Board of
Directors and the 17th meeting of the 8th Board of Supervisors. The meetings
reviewed and approved the “Proposal on Reviewing the Long-Term Equity Incentive
Plan (Draft) of Shanghai Zhenhua Heavy Industries Co., Ltd. and Its Summary”, See the relevant announcements (Extraordinary Announcement
“Proposal on Reviewing the 2023 Stock Option Incentive Plan (Draft) of Shanghai No. 2023-053, 2023-054, 2023-055 and 2023-056) disclosed by the
Zhenhua Heavy Industries Co., Ltd. and Its Summary”, “Proposal on Reviewing the Company on the website of the Shanghai Stock Exchange (www.
Assessment Management Measures for the Implementation of 2023 Stock Option sse.com.cn) and designated information disclosure media on
Incentive Plan of Shanghai Zhenhua Heavy Industries Co., Ltd.”, “Proposal on December 27, 2023 for details.
Reviewing the Management Measures for the Implementation of 2023 Stock Option
Incentive Plan of Shanghai Zhenhua Heavy Industries Co., Ltd.” and other related
proposals.
According to the “Official Reply to the Implementation of the Stock Option Incentive
Plan by Shanghai Zhenhua Heavy Industries Co., Ltd.” (GZKF [2024] No. 68) issued See the relevant announcement (Extraordinary Announcement
by the State-owned Assets Supervision and Administration Commission of the State No. 2024-004) disclosed by the Company on the website of the
Council”, the State-owned Assets Supervision and Administration Commission of the Shanghai Stock Exchange (www.sse.com.cn) and designated
State Council agreed to the Company’s implementation of the stock option incentive information disclosure media on March 23, 2024 for details.
plan in principle.
Section IV Corporate Governance
Summary of events Query index
See the relevant announcements (Extraordinary Announcement
On March 28, 2024, the Company held the 32nd meeting of the 8th Board of Directors
No. 2024-006, 2024-007, 2024-011 and 2024-012) disclosed by the
and the 18th meeting of the 8th Board of Supervisors. The meetings reviewed and
Company on the website of the Shanghai Stock Exchange (www.
approved the “Proposal on Reviewing the Long-Term Equity Incentive Plan (Revised
sse.com.cn) and designated information disclosure media on
Draft) of Shanghai Zhenhua Heavy Industries Co., Ltd. and Its Summary”.
March 29, 2024 for details.
(II) Incentives not disclosed in provisional announcement or with follow-up progress
Equity incentives
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
Information about employee stock ownership plan
Applicable √ Not Applicable
Other 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 for
senior executives during the reporting period
√ Applicable Not Applicable
The Company appoints the directors, supervisors and senior executives in accordance with the provisions of Company
Law and the Articles of Association, has built up a preliminary cultivation, selection, supervision, assessment, reward
and punishment, constraint system for the Company’s senior executives suitable for the actual situation. The Company
formulated corresponding administrative methods for senior executives. According to the production and development
need of the Company, the senior executives are appointed, resigned and assessed following the principles of “being from
top to bottom integrating the virtue and talent”, and are subject to annual appraisal by the Company according to the
due diligence and job performance. The Company will gradually improve the existing performance evaluation system
and salary system, and promote medium and long-term incentive system for all senior executives and the core technical
personnel of the Company, to continue to stimulate the enthusiasm of the senior executives, to create new achievements,
and to ensure the benefit maximization and standard operation of the Company.
XII. Development and implementation of internal control systems during the reporting
period
√ Applicable Not Applicable
The Company actively promoted the continuous improvement of internal control management system in five aspects
including internal environment, risk management, major control activities, information and communication, and internal
supervision and evaluation. In the meanwhile, through internal self-inspection, daily and special supervision, and internal
control evaluation, the Company ensured the effective implementation of relevant management requirements, smooth
communication of feedback information, and timely rectification of defects.
According to the, the Company integrated the business systems and the management flow into the control requirements
of 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 for
Internal Control Management Audit”, “Regulations on Comprehensive Risk Management”, “Regulations on Compliance
ANNUAL REPORT 2023
Management” and “Regulations on the Management of Significant Business Risk Reporting”, and formulated a power and
responsibility manual to make clear the control nodes and approval flow of various operation and management matters,
and improved the beforehand, intermediate and afterwards risk control mechanisms and established a strict internal
control system.
The Company continuously carried out annual internal control evaluation and internal control audit, and the annual
report on internal control evaluation was submitted to the Board of Directors for discussion. In accordance with the
Basic Standard for Enterprise Internal Control and its supporting guidelines, the Company, in combination with its own
structure and characteristics, comprehensively evaluated the reasonableness and operational effectiveness of the internal
control design over the internal environment, risk assessment, control activities, information and communication, internal
supervision and other elements of the Company, found out the potential deficiencies or defects at all levels, further
strengthened and standardized the construction of the Company's internal control and improved the management
quality and the risk prevention capability. Meanwhile, the Company entrusted an external professional audit firm to
conduct the internal control audit every year. Through the external audit, according to the requirements on internal
control, the risks were effectively identified, evaluated, controlled, monitored and improved to organically integrate risk
management, internal control and daily operation activities, and effectively control and prevent various risks to ensure
the sustainable and stable development of the Company.
Description of the important deficiencies in internal control during the reporting period
Applicable √ Not Applicable
XIII. Management and control over the subsidiaries during the reporting period
√ Applicable Not Applicable
In accordance with the provisions of the Company Law, the Articles of Association and other relevant laws, regulations
and rules, the Company continued to strengthen the management and supervision of its subsidiaries on standardized
operation, information disclosure, financial capital and operation, and timely track the financial status of subsidiaries and
other significant matters to ensure legal compliance of operation and management, assets safety, truthful and complete
financial reports and related information, and to further enhance the operation management and risk management
capability of the subsidiaries.
XIV. Particulars about the audit report on internal control
√ Applicable Not Applicable
Ernst & Young Hua Ming LLP, engaged by the Company, had audited the effectiveness of the internal control of the
financial statement as of December 31, 2023 and issued a standard internal control audit report with unqualified 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: Yes
Opinion type of internal control audit report: standard with clean opinion
XV. Remediation of problems identified by self-inspection in the special action on the
governance of listed companies
None
XVI. Others
Applicable √ Not Applicable
Section V Environmental and Social Responsibility
Section V Environmental and Social Responsibility
I. Environmental Information
Establishment of environmental protection-related mechanisms Yes
Funds 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 pollutant
discharge units published by environmental protection department
√ Applicable Not Applicable
1. Emission information
√ Applicable Not Applicable
During the reporting period, the total permitted amount of main pollutants in waste gas of the Company and its major
subsidiaries: 0.783 tons of sulfur dioxide, 2.399 tons of nitrogen oxides, 63.792 tons of particulate matter, and 328.182
tons of VOCs per year; no permitted emission limit was indicated for some pollutants on the pollutant emission permit of
some entities; the actual emissions in 2023 were 8.947 tons of sulfur dioxide, 44.088 tons of nitrogen oxides, 39.701 tons
of particulate matter and 194.116 tons of VOCs. Total permitted amount of main pollutants in wastewater: 609.484 tons
of COD, 63.506 tons of ammonia nitrogen, 1.468 tons of total phosphorus and 135.557 tons of total nitrogen per year; no
permitted emission limit was indicated for some pollutants on the pollutant emission permit of some entities; the actual
emissions in 2023 were 291.9 tons of COD, 43.703 tons of ammonia nitrogen, 0.384 tons of total phosphorus and 59.522
tons of total nitrogen. According to the table below, all indicators were in line with the permitted emission limit indicated
on the pollutant emission permit.
According to the supervision monitoring by environmental protection department and the self-monitoring of the
enterprise, all kinds of pollutants discharged by the Company meet the corresponding emission limits specified in the
national “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 Standard
of Cooking Fume” (GB18483-2001), “Integrated Wastewater Discharge Standard” (GB8978-1996), Wastewater Quality
Standards for Discharge to Municipal Sewers (GB/T31962-2015), “Emission Standard for Industrial Enterprises Noise at
Boundary” (GB12348- 2008), “Emission Standards of Pollutants for Shipbuilding Industry” (DB31/934-2015) of Shanghai
City, “Integrated Emission Standard of Air Pollutants” (DB31/933-2015) of Shanghai City, “Emission Standards for
Odor 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 Wastewater
Discharge 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 Steel
Structure Manufacturing Industry” (DB32/4147-2021) of Jiangsu Province, “Emission Standard of Air Pollutants for
Industrial Surface Coating” (DB32/4439-2022) of Jiangsu Province and “Emission Standard of Air Pollutants for Industrial
Furnace 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 REPORT 2023
Permitted
Name of main Total Over-
Name of the emissions
pollutant and Emission Number Distribution Emission emissions standard
company or Applicable pollutant emission standards in 2023
characteristic mode of outlets of outlets concentration in 2023 emissions
subsidiary (emission
pollutant (ton) in 2023
permit) (ton)
SO2 Integrated Emission Standard of Air Pollutants 0 0.066 None
(DB31/933-2015) of Shanghai City, Emission
NOx Pretreatment, Standards of Pollutants for Shipbuilding Industry 0 1.046 None
Particulate 55 (3 out sand washing, (DB31/934-2015), Emission Standards for Odor
Shanghai of service) coating and Pollutants (DB31/1025-2016), Emission Standard of 12.583 16.1026 None
matter
Zhenhua canteen Cooking Fume (DB31-844-2014), and Standard for
Meeting
Heavy Organized Fugitive Emission of Volatile Organic Compounds
VOCs relevant 151.385 174.047 None
Industries Co., emission (GB37822-2019)
standards
Ltd. Changxing
Branch COD 221.366 338.59 None
Ammonia Wastewater Integrated Wastewater Discharge Standard
2 31.866 37.16 None
nitrogen outlet (DB31/199-2018) of Shanghai City
Total nitrogen 52.541 121.79 None
SO2 Integrated Emission Standard of Air Pollutants 0 0.0183 None
Shanghai
(DB31/933-2015), Emission Standards for Odor
Zhenhua Port NOx Sand 0.264 0.5727 None
Meeting Pollutants (DB31/1025-2016) and Emission
Machinery Organized washing,
Particulate 14 relevant Standard of Air Pollutants for Boiler (DB31/387-
Heavy emission coating and 2.944 15.9682 None
matter standards 2018) of Shanghai City, and Standard for Fugitive
Industries Co., canteen
Emission of Volatile Organic Compounds
Ltd. VOCs 20.118 58.631 None
(GB37822-2019)
Particulate Integrated Emission Standard of Air Pollutants
2.727 30.14 None
matter (DB31/933-2015) of Shanghai City, Emission
Pretreatment,
9 (2 out of Standards for Odor Pollutants (DB31/1025-2016),
sand washing
service) Emission Standard of Cooking Fume (DB31-844-
Shanghai VOCs and coating 7.98 45.56 None
2014), and Standard for Fugitive Emission of
Zhenhua Volatile Organic Compounds (GB37822-2019)
Heavy
Meeting Domestic
Industries Port Organized
relevant sewage
Machinery emission
standards discharged
General
Equipment Co., through pipes
Domestic Integrated Wastewater Discharge Standard
Ltd. / 1 / is not subject /
sewage outlet (DB31/199-2018) of Shanghai City
to a permitted
discharge
amount and is
not monitored
Particulate Integrated Emission Standard of Air Pollutants
5.2225 - None
matter (GB 16297-1996), Integrated Emission Standard
Shanghai of Air Pollutants (DB32 4041-2021) and Emission
Sand washing
Zhenhua 13 Standard of Air Pollutants for Surface Coating
and coating Meeting
Heavy VOCs Organized of Engineering Machinery and Steel Structure 4.3763 25.92 None
relevant Manufacturing Industry (DB32/4147-2021) of
Industries Co., emission
standards Jiangsu Province
Ltd. Nantong
Branch COD Integrated Wastewater Discharge Standard 19.3926 139.3640 None
Wastewater
2 (GB8978- 1996), Wastewater Quality Standards for
Ammonia outlet 4.3349 17.496 None
Discharge to Municipal Sewers (GB/T31962-2015)
SO2 Integrated Emission Standard of Air Pollutants (GB 8.87533* - None
16297-1996), Integrated Emission Standard of Air
NOx Pretreatment, Pollutants (DB32 4041-2021), Emission Standard of 43.57568* - None
Particulate sand washing, Air Pollutants for Surface Coating of Engineering
coating, Machinery and Steel Structure Manufacturing 13.63264 - None
matter
19 hazardous Industry (DB32/4147-2021) and Emission Standard
Nantong waste of Air Pollutants for Industrial Furnace and Kiln
Zhenhua warehouse (DB32/3728-2020) of Jiangsu Province, Emission
VOCs and canteen Meeting Standards for Odor Pollutants (GB14544-1993), 2.47799 16.125 None
Heavy Organized
relevant Emission Standard of Cooking Fume (GB18483-
Equipment emission
standards 2001)
Manufacturing
Co., Ltd. COD 12.07874 131.5304 None
Ammonia 3.89373 8.85 None
Integrated Wastewater Discharge Standard
Wastewater
Total 1 (GB8978- 1996), Wastewater Quality Standards for
outlet 0.38411 1.468 None
phosphorus Discharge to Municipal Sewers (GB/T31962-2015)
Total nitrogen 6.98094 13.767 None
SO2 Integrated Emission Standard of Air Pollutants 0.0649 - None
(GB16297-1996), Emission Standard of Air
NOx Heat Pollutants for Boiler (GB13271-2014), Integrated 0.2068 - None
Particulate treatment, Emission Standard of Air Pollutants (DB32 4041-
11 0.5946 - None
ZPMC matter sand washing 2021) of Jiangsu Province, Emission Standards
Transmission and coating Meeting for Odor Pollutants (GB14554-1993), Emission
Organized Standard of Air Pollutants for Industrial Surface
Machinery VOCs relevant 4.50 5.3 None
emission Coating (DB32/4439-2022) of Jiangsu Province
(Nantong) Co., standards
Ltd.
Not
COD Integrated Wastewater Discharge Standard - None
Domestic detected
1 (GB8978- 1996), Wastewater Quality Standards for
sewage outlet Not
Ammonia Discharge to Municipal Sewers (GB/T31962-2015) - None
detected
Section V Environmental and Social Responsibility
Permitted
Name of main Total Over-
Name of the emissions
pollutant and Emission Number Distribution Emission emissions standard
company or Applicable pollutant emission standards in 2023
characteristic mode of outlets of outlets concentration in 2023 emissions
subsidiary (emission
pollutant (ton) in 2023
permit) (ton)
SO2 Integrated Emission Standard of Air Pollutants 0 - None
NOx (GB 16297-1996), Emission Standards for Odor 0 - None
Pretreatment,
Pollutants (GB14554-1993), Integrated Emission
Particulate 10 sand washing
ZPMC Qidong Standard of Air Pollutants (DB32 4041-2021) 0.86 - None
matter and coating Meeting
Marine Organized of Jiangsu Province, Emission Standard of Air
relevant
Engineering VOCs emission Pollutants for Boiler (GB13271-2014) 1.09 - None
standards
Co., Ltd.
COD Integrated Wastewater Discharge Standard 7.35 - None
Domestic
1 (GB8978- 1996), Wastewater Quality Standards for
Ammonia sewage outlet 0.32 - None
Discharge to Municipal Sewers (GB/T31962-2015)
SO2 0.00692 0.698270 None
Integrated Emission Standard of Air Pollutants
NOx (DB31/933-2015), Emission Standards for Odor 0.04111 0.780500 None
Sand washing
Shanghai Port Particulate 10 Pollutants (DB31/1025-2016), and Emission
and coating Meeting 1.1376 1.581650 None
Machinery matter Organized Standard of Air Pollutants for Boiler (DB31/387-
relevant 2018) of Shanghai City
Heavy Industry emission
VOCs standards 2.1888** 2.59866 None
Co., Ltd.
COD Wastewater Integrated Wastewater Discharge Standard 31.713 - None
1
Ammonia outlet (DB31/199-2018) 3.288 - None
Note: 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 first half of the year.
4.**When calculating VOC emissions, Shanghai Port Machinery Heavy Industry Co., Ltd. corrected the calculation error in the first half of 2023. The VOC
emissions in the first half of 2023 were calculated based on the daily RTO + total start-up time (14 hours) of zeolite rollers, covering the preheating and
standby time (the workshop was actually not operating). When calculating emissions at the end of 2023, the calculation was adjusted according to the
actual exhaust gas treatment time. Therefore, the yearly data for 2023 is only slightly higher than the data in the first half of the year.
2. Construction and operation of pollution control facilities
√ Applicable Not Applicable
By 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 environmental
protection 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 the
control objectives were compliant and under control. During the reporting period, the Company and its subsidiaries
strengthened the comprehensive management of waste gas, waste water, noise and hazardous waste, and various
pollution prevention and control facilities functioned normally. In 2023, ZPMC Qidong Marine Engineering Co., Ltd., a
subsidiary of the Company completed the renovation of its hazardous waste warehouse, and completed and put into
use the paint warehouse project; Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. upgraded the waste gas
treatment facilities of its hazardous waste warehouse from activated carbon + photocatalytic oxidation to filter bag +
activated carbon + CO treatment process; the first phase of the technological transformation project for automated
painting 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 Applicable
The Company strictly implemented the relevant management regulations of “Three Simultaneities” for environmental
protection of national and local construction projects in all new, reconstruction and expansion projects, and had gone
through the procedures of environmental impact assessment and completion acceptance for the projects. During the
reporting period, some subsidiaries had no new, reconstruction or expansion projects. However, new progress was made
in the construction projects of the some entities, as shown in the table below.
ANNUAL REPORT 2023
Name of the company or subsidiary Key projects in 2023 EIA approval / acceptance
ZPMC Changxing intelligent port equipment
Shanghai Zhenhua Heavy Industries Co., Ltd. Obtained the EIA approval
industry project
Paint warehouse reconstruction project of Obtained the EIA approval (not yet put into production,
Shanghai Zhenhua Heavy Industries Port
Shanghai Zhenhua Heav y I ndustries Por t and procedures for major changes in the environmental
Machinery General Equipment Co., Ltd.
Machinery General Equipment Co., Ltd. impact assessment report being handled)
Newly contrustruc ted Class A warehouse
Shanghai Zhenhua Heavy Industries Co., Ltd. and self-use diesel supply center supporting
Acceptance completed
Nantong Branch project of Nantong Zhenhua Heavy Equipment
Manufacturing Co., Ltd.
Accepted the first phase of the project was accepted,
Shanghai Zhenhua Port Machinery Heavy Technical improvement project of painting
and the second phase of the project expected to be
Industries Co., Ltd. automatic production line
accepted in October 2024
Technological transformation projec t for
ZPMC Transmission Machinery (Nantong) processing and production of core parts of
Environmental impact assessment being publicized
Co., Ltd. the lifting system for wind power installation
platforms
According to the “Regulations on the Administration of Pollutant Emission Permit”, the “Measures for the Administration
of Pollutant Emission Permit (Trial)” and other national requirements, the Company and its subsidiaries applied for
pollutant emission permits and applied for the change of pollutant emission permits according to the actual discharge
changes, and obtained the “Pollutant Emission Permit” issued by local ecological and environmental protection
department. In strict accordance with the requirements of emission permit, the Company continued to discharge
pollutant as permitted, carried out self-monitoring, established accounts, reported regularly and made information
public.
4. Emergency proposal for environmental incidents
√ Applicable Not Applicable
In order to prevent the occurrence of sudden environmental pollution incidents and to control and deal with them
quickly and effectively after the occurrence, the Company complied with the “Environmental Protection Law of the
People’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's
Republic of China on the Prevention and Control of Solid Waste Pollution”, “Measures for the Administration of Recording
the Emergency Plan for Emergent Environmental Events of Enterprises and Institutions (Trial)”, “Guidelines for the
Compilation of Risk Assessment Report on Environmental Emergencies in Enterprises (Trial)”, and its branches and
subsidiaries, based on the assessment of existing environmental risks, prepared their emergency plans, filed them with
the local ecological and environmental protection department, and actively carried out emergency drills to further
prevent and effectively 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-filing of the emergency plan filing form
in December 2023.
5. Environmental self-monitoring plan
√ Applicable Not Applicable
All subordinate units of the Company installed online monitoring equipment for exhaust gas VOCs and wastewater
as 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 and
technical guidelines for self-monitoring of pollutant discharging units. All units released self-monitoring information on
information disclosure platforms such as National Pollution Source Monitoring Information Management and Sharing
Platform, 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 Information
Release Platform as required. All branches and subsidiaries of the Company carefully carried out self-monitoring in
accordance with national and local requirements, and timely, complete and truthfully released self-monitoring data and
related information.
6. Administrative penalties imposed for environmental issues during the reporting period
√ Applicable Not Applicable
During the reporting period, the Company’s pollutant discharging units did not receive any administrative penalties for
environmental protection.
7. Other environmental information to be disclosed
√ Applicable Not Applicable
The Company’s subsidiaries, Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, Shanghai Zhenhua Port
Machinery Heavy Industries Co., Ltd., Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch and Nantong
Zhenhua Heavy Equipment Manufacturing Co., Ltd., were included in the list of key enterprises subject to mandatory
cleaner production audits. Up to now, Changxing Branch completed the acceptance of cleaner production audit at the
end of September 2023; Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd. passed the evaluation of cleaner
production 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 Manufacturing
Co., Ltd. got approved by the Ecology and Environment Bureau of Nantong Economic and Technological Development
Zone 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 Applicable
During the reporting period, the Company’s pollutant discharging units did not receive any administrative penalties for
environmental protection.
2. Other environmental information disclosed with reference to key emission units
√ Applicable Not Applicable
The Company’s subsidiary ZPMC Zhangjiagang Port Machinery Co., Ltd. completed the waste gas treatment project
for hazardous waste warehouse at the end of 2023, where the waste gas from the hazardous waste warehouse was
discharged through the exhaust pipe after treatment with activated carbon, and is going through the procedures for
the change of its pollution emission permit. ZPMC Zhangjiagang Port Machinery Co., Ltd. had 4 waste gas outlets and 1
wastewater outlet, and the main pollutants were: wastewater (COD, ammonia nitrogen), waste gas (particles, VOCs), solid
waste, noise, etc. Discharge method: the wastewater was discharged to the sewage treatment plant through pipes; the
atmospheric pollutants such as the particulate matter and VOCs in waste gas were discharged in a well-organized manner
after treatment; the solid wastes and hazardous wastes were handed over to the qualified entities for treatment; plant
boundary 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 REPORT 2023
(III) Information that is conducive to ecological protection, pollution prevention and environmental
responsibility performance
√ Applicable Not Applicable
In 2023, the Company actively fulfilled its social responsibilities and was committed to promoting sustainable
development, and released the “2022 Environmental, Social and Corporate Governance (ESG) Report”, which fully
elaborated on the its remarkable results in environmental protection, social responsibilities and corporate governance in
the 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 effects
Carbon reduction measures taken or not Yes
Carbon dioxide equivalent emissions reduced (in tons) 2,263
Types of carbon reduction measures (e.g., using clean energy, for power generation,
Using clean energy for power generation, using carbon reduction
using carbon reduction technologies in the production process, developing and
technologies in the production process
producing new products that contribute to carbon reduction, etc.)
Specific description
√ Applicable Not Applicable
Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch installed and constructed a centralized control system for
the air compression station at Pier No. 1, which can collect the operating data such as the power consumption and gas
production of each air compressor in real time. The start-stop priority level can be set through the joint control program
based on the on-site gas consumption, allowing the machines with high loading efficiency to run more. At the same
time, an unloading standby time limit can be set; the program is set to shut down and cut off the power as long as the
air compressor unloading time reaches 180s, which minimizes the unloading time and saves energy consumption. The
energy consumption per unit of gas production has dropped by about 30%, resulting in annual saving of 410 tons of
standard 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 acceptance
expert team in August 2023 and was successfully connected to the grid for power generation. The total installed capacity
of 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 benefits.
II. Fulfillment of social responsibility
(I) Separate disclosure of social responsibility report, sustainability report or ESG report
√ Applicable Not Applicable
For detailed report, please refer to the “2023 Environmental, Social, and Corporate Governance (ESG) Report of Shanghai
Zhenhua 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
Amount/content Description
welfare programs
Total investment (’0,000 Yuan) 84.5064 Directly provide free donations for financial support to targeted assistance areas.
Including: fund (’0,000 Yuan) 84.5064
Amount equivalent to goods and
materials (’0,000 Yuan)
Section V Environmental and Social Responsibility
External donations and public
Amount/content Description
welfare programs
This figure is obtained based on direct beneficiaries of all donations, including education
assistance (schools), revitalization through organizations (communities), employment
Number of people benefited (person) 10,681 assistance (labor transfer) and talent training, and is an estimated figure. The number of
people benefiting from projects such as consumption assistance and “aiding Xinjiang with
work clothes” cannot be directly counted.
Specific description
√ Applicable Not Applicable
In 2023, ZPMC earnestly further promoted its social responsibility work and fully achieved its responsibility goals through
reasonable arrangement and effectively implementation. The Company invested a total of RMB 845,064 in external
donations and public welfare programs to consolidate and expand the results of poverty alleviation in targeted assistance
areas and continuously promote rural revitalization. ZPMC, in response to the group’s overall planning, invested RMB
300,000 to help build a new teaching complex for Shangpa Middle School in Fugong County; invested RMB 200,000 to
increase the principal of the Special Education Development Fund in Lanping County; donated RMB 43,700 to Shideng
Township 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 display
screens to improve the office conditions of relocated kindergartens; invested RMB 126,300 in talent training for the
Organization Department of the Lanping County Party Committee; invested RMB 20,000 to improve the Party building
capabilities 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 from
Lei 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 the
campaign, including books, children’s picture books, stationery, office and living necessities and toys. A total of RMB
13,310 was raised through the Charity Sale Campaign, which was donated to the “ZPMC Fund for Aid to Learning and
Dream Pursuit” to build a “Love Library” in a poverty-stricken primary school in Tu’e Township, Lanping County, Nujiang
City, Yunnan Province.
III. Specific work on consolidating and expanding the progress in poverty alleviation and
rural revitalization
√ Applicable Not Applicable
Item of poverty alleviation and rural
Amount/content Description
revitalization
Include direct investment into gratuitous assistance funds, introduction of
Total investment (’0,000 Yuan) 182.6725 assistance funds, purchase and sale of agricultural products and ordering of
work clothes from targeted assistance areas, etc.
Including: fund (’0,000 Yuan) 84.5064 Directly provide financial support to targeted assistance areas.
Amount equivalent to goods and Include purchase and sale of agricultural products in targeted assistance
98.1661
materials (’0,000 Yuan) areas, ordering of work clothes and donations from charity sales.
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,
Number of people benefited (person) 10,681
and is an estimated figure. The number of people benefiting from projects
such as consumption assistance and “aiding Xinjiang with work clothes”
cannot be directly counted.
Investigation and guidance,
The Company conducted on-site survey, held special work meetings on
capital investment, talents
Forms of assistance (such as development targeted assistance, invested funds, helped create job opportunities, trained
and employment suppor t,
o f l o c a l i n d u s t r y, c re a t i n g j o b grassroots cadres and rural revitalization leaders, paried with the Yong’an
boosting the consumption
opportunities, improving education) Community Party Committee, purchased and sold agricultural products and
of products from poor areas,
customized work clothes from targeted assistance areas, etc.
Party building pairing
ANNUAL REPORT 2023
Specific description
√ Applicable Not Applicable
In 2023, the Company fully implemented the decisions and arrangements of the Party Central Committee on
consolidating the results of poverty alleviation and continuing to promote rural revitalization, and effectively put in place
the 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 talents
development”, “revitalization through organizations” and “industry revitalization”. On September 18, 2023, the Company
visited Lanping County, Nujiang Prefecture, Yunnan Province to investigate the targeted assistance work. On September
19, 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. Changxing
Branch of the Company helped created 215 jobs in the assistance areas throughout the year, who achieved stable
employment in various positions.
Section VI Important Events
Section VI Important Events
I. Fulfillment of commitments
(I) Commitments of the Company’s actual controller, shareholders, related parties and acquirer, as well
as the Company during the reporting period or ongoing at the period-end
√ Applicable Not Applicable
Describe Describe
Is there any It the specific further plans
Commitment Commitment Commitment Commitment time limit for Commitment commitment reasons for in case of
Commitment Content
background Type party time commitment term completed failure of failure of
performance in time commitment commitment
performance performance
Commitments on ensuring effective implementation of the
measures to compensate for diluted immediate return after
the Company’s issuance of A shares to specific targets: 1. I
undertake that I will not transfer benefits to other units or
individuals at nil consideration or on unfair terms, and will
not 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 of
the Company for any investment or consumption irrelevant
with the performance of my duties; 4. I undertake that I will
procure the remuneration system developed by the Board
of Directors or the Remuneration Committee to be linked
with the implementation of the measures of the Company
to compensate for returns within the scope of my own
duties and authorities; 5. If the Company is to adopt an
equity incentive plan in the future, I undertake that I will use
Commitments Company
my best efforts to procure the exercise conditions for the Long-term
related to Others directors and May 25, 2023 No Yes N/A N/A
equity incentive plan to be linked with the implementation effective
refinancing senior executives
of the measures of the Company to compensate for returns
within the scope of my own duties and authorities; 6. From
the date when the commitment is made to the completion
of the Company’s issuance of A shares to specific targets, I
undertake that supplementary undertakings will be given
in accordance with new regulations announced by the CSRC
and SSE concerning measures to compensate for returns
and related undertakings in due course, if such regulations
are announced by the CSRC and SSE and the foregoing
undertakings cannot comply with such regulations. 7. I
undertake that I will earnestly implement the measures
of the Company concerning compensation for returns
and my commitments thereon, and if any loss is incurred
to the Company or investors due to my violation of such
commitment, I am willing to be liable for compensation to
the Company or investors in accordance with the law.
1. We will not act beyond our powers to interfere with the
Company’s operating and management activities or infringe
upon the interests of listed companies in strict accordance
with relevant laws and regulations and the provisions of the
CSRC and SSE; 2. From the date when the commitment is
made to the completion of the issuance of A shares to specific
targets, we undertake that supplementary undertakings will
Controlling
be given in accordance with new regulations announced
shareholder:
Commitments by the CSRC and SSE concerning measures to compensate
China Long-term
related to Others for returns and related undertakings in due course, if May 25, 2023 No Yes N/A N/A
Communications effective
refinancing such regulations are announced by the CSRC and SSE
Construction
and the foregoing undertakings cannot comply with
Group Co., Ltd.
such regulations. 3. We undertake that we will earnestly
implement the measures of the Company concerning
compensation for returns and my commitments thereon, and
if any loss is incurred to the Company or investors due to my
violation of such commitment, we are willing to be liable for
compensation to the Company or investors in accordance
with the law.
ANNUAL REPORT 2023
Describe Describe
Is there any It the specific further plans
Commitment Commitment Commitment Commitment time limit for Commitment commitment reasons for in case of
Commitment Content
background Type party time commitment term completed failure of failure of
performance in time commitment commitment
performance performance
No loans, loan guarantees or any other form of financial Terminattion
December 26,
Others Company support will be provided to the incentive objects for the Yes date of Yes N/A N/A
2023
exercise of stock options granted under this incentive plan. incentive plan
Commitments If the Company has false records, misleading statements or
related major omissions in the information disclosure documents,
to equity resulting in non-compliance with the grant of equity or the
Terminattion
incentives exercise of equity arrangements, the incentive objects shall December 26,
Others Incentive object Yes date of Yes N/A N/A
return all the benefits obtained from this incentive plan to 2023
incentive plan
the Company after false records, misleading statements or
major omissions in the information disclosure documents are
confirmed.
(II) If there is earnings forecast for the assets or projects of the Company and the reporting period is
still in the earnings forecast period, the Company shall explain whether the asset or project reaches the
original earnings forecast and give the reasons
Reached Not reached √ Not applicable
(III) Fulfillment 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 during
the 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 with
nonstandard opinions”
Applicable √ Not Applicable
V. Analysis and explanation of the Company of the causes and the impacts of the major
changes in accounting policies and accounting estimates or correction of significant
accounting errors
(I) Analysis and explanation of the Company on the causes and the impacts of the changes in accounting
policies and accounting estimates
Applicable √ Not Applicable
(II) Analysis and explanation of the cause of correction of significant accounting errors and their impacts
by the Company
Applicable √ Not Applicable
(III) Communication with former CPA firm
Applicable √ Not Applicable
Section VI Important Events
(IV) Approval procedures and other explanations
Applicable √ Not Applicable
VI. Engagement and dismissal of the public accounting firm
Unit: Yuan Currency: CNY
Now engaging
Name of the domestic accounting firm Ernst & Young Hua Ming LLP
Remuneration of the domestic accounting firm 4,850,000
Audit term of the domestic accounting firm 8
Name of Certified Public Accountant of the domestic accounting firm Gao Chong, Gu Chengli
Cumulative years of audit services provided by CPAs of the domestic accounting firm 2, 5
Name Remuneration
Accounting firm performing internal control audit Ernst & Young Hua Ming LLP 450,000
Particulars about the engagement and dismissal of the accounting firm
√ Applicable Not Applicable
At the 18th meeting of the 8th Board of Directors held on March 30, 2023 and the 2022 Annual General Meeting of
Shareholders held on June 28, 2023, the Company reviewed and approved the “Proposal on the Engagement of Domestic
Audit Accounting Firm for the Year 2023” and agreed to renew the engagement of Ernst & Young Hua Ming LLP as the
domestic auditing firm of the Company for the year 2023.
Particulars about reappointment of the accounting firm in the auditing period
Applicable √ Not Applicable
Explanation of audit fees decreased by 20% or more compared with the previous year
Applicable √ Not Applicable
VII. 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 Applicable
VIII. Events related to bankruptcy and reorganization
Applicable √ Not Applicable
IX. 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 REPORT 2023
(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: CNY
In the reporting period:
Estimated
liabilities
Party Amount Execution of
Type of and amount Progress Results of the lawsuit
Plaintiff Defendant bearing Background of the lawsuit involved adjudication
lawsuit and caused by in lawsuit (arbitration) and
(applicant) (respondent) joint (arbitration) in lawsuit of lawsuit
arbitration lawsuit (arbitration) impacts
liabilities (arbitration) (arbitration)
(arbitration)
or not
At the end of February 2014,
the Company completed
the acquisition of the former
The first item of the
Jiangsu Daoda Ocean
first judgment of the
Engineering Co., Ltd through
Shanghai High People’s
capital increase and held 67%
Court was affirmed; the
of the shares. At the same time,
second to fifth items
it was agreed that the losses of
of the first judgment
the company, was borne by the
were reversed; the
former shareholders including
Shanghai three defendants were
Nantong Huafu Port Co., Ltd, On March
Zhenhua ordered to pay the total
Li Aidong and Zhao Xiaohua 29, 2022, the
Heavy costs and damages of
Nantong Huafu b e fo re Fe b r u a r y 2 8 , 2 0 1 4 . Supreme The
Industries RMB 27,434,000 and
Port Co., Ltd, During the subsequent business People’s implementation
Co., Ltd, and None Lawsuit 36,872.21 0 the corresponding
Li Aidong, and process, it was found that Court issued is being
ZPMC Qidong overdue interest to
Zhao Xiaohua the former Daoda Company a final advanced.
Marine ZPMC Qidong Marine
untruthfully disclosed some judgment on
Engineering Engineering Co., Ltd.;
matters of lawsuit or debts, the case.
Co., Ltd. the first trial verdict
resulting in a series of losses of
that the respondents
the Company.
should compensate
Through the related audit
Shanghai Zhenhua
and readjustment etc., it was
Heavy Industries Co.,
deemed that the loss of RMB
Ltd of RMB 1 million for
368.7221 million Yuan should
the breach of contract
b e i n b o r n e i n t h e fo r m e r
was affirmed.
shareholders and the lawsuit
was prosecuted again after an
inconclusive press for payment.
(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 as
the relevant rectifications
Applicable √ Not Applicable
XI. Particulars about the credit standings of the Company and its controlling shareholder and
the 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 Applicable
At the 9th meeting of the 8th Board of Directors of the Company held on April 13, 2022 and the 2021 Annual General
Meeting of Shareholders held on June 27, 2022, the Company reviewed and approved the “Proposal on Reviewing the
Signing of Framework Agreement on Routine Related Transactions for 2022-2024”, which had been announced and was
detailed in Extraordinary Announcement No. 2022-004, 2022-008, 2022-017 and 2023-008.
Unit: Yuan Currency: CNY
Reason or great
Pricing Proportion in Settlement differences
Type of Content Price of Amount
principle the amount mode of between the
Related party Relationship related of related related of related Market price
of related of similar associated bargain price
transaction transaction transaction transaction
transaction transactions (%) transaction and market
price
Subsidiary of the
CCCC Haifeng Wind Power Project income/ Pricing based on Monetary
holding parent Sales of goods 1,140,744,581 1,140,744,581 3.46 1,140,744,581 /
Development Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC Third Harbor Project income/ Pricing based on Monetary
holding parent Sales of goods 307,346,561 307,346,561 0.93 307,346,561 /
Engineering Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC International (Hong Project income/ Pricing based on Monetary
holding parent Sales of goods 541,656,238 541,656,238 1.64 541,656,238 /
Kong) Holdings Limited lease of assets market price funds
company
Subsidiary of the
China Harbour Project income/ Pricing based on Monetary
holding parent Sales of goods 368,658,012 368,658,012 1.12 368,658,012 /
Engineering Co., Ltd. lease of assets market price funds
company
CCCC National
Engineering Research Subsidiary of the
Project income/ Pricing based on Monetary
Center of Dredging holding parent Sales of goods 267,238,142 267,238,142 0.81 267,238,142 /
lease of assets market price funds
Technology and company
Equipment Co., Ltd.
Subsidiary of the
Road & Bridge Project income/ Pricing based on Monetary
holding parent Sales of goods 201,584,250 201,584,250 0.61 201,584,250 /
International Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC Second Harbor Project income/ Pricing based on Monetary
holding parent Sales of goods 238,838,013 238,838,013 0.73 238,838,013 /
Engineering Co., Ltd. lease of assets market price funds
company
Subsidiary of the
China Road & Bridge Project income/ Pricing based on Monetary
holding parent Sales of goods 84,833,201 84,833,201 0.26 84,833,201 /
Corporation lease of assets market price funds
company
Subsidiary of the
CCCC Second Highway Project income/ Pricing based on Monetary
holding parent Sales of goods 65,503,346 65,503,346 0.20 65,503,346 /
Engineering Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC Tianjin Dredging Co., Project income/ Pricing based on Monetary
holding parent Sales of goods 58,364,520 58,364,520 0.18 58,364,520 /
Ltd. lease of assets market price funds
company
CCCC Tianhe Mechanical Subsidiary of the
Project income/ Pricing based on Monetary
Equipment Manufacturing holding parent Sales of goods 50,915,826 50,915,826 0.15 50,915,826 /
lease of assets market price funds
Co., Ltd. company
Subsidiary of the
CCCC First Harbor Project income/ Pricing based on Monetary
holding parent Sales of goods 44,364,127 44,364,127 0.13 44,364,127 /
Engineering Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC Third Highway Project income/ Pricing based on Monetary
holding parent Sales of goods 36,902,683 36,902,683 0.11 36,902,683 /
Engineering Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC-SHEC First Highway Project income/ Pricing based on Monetary
holding parent Sales of goods 15,698,029 15,698,029 0.05 15,698,029 /
Engineering Co., Ltd. lease of assets market price funds
company
ANNUAL REPORT 2023
Reason or great
Pricing Proportion in Settlement differences
Type of Content Price of Amount
principle the amount mode of between the
Related party Relationship related of related related of related Market price
of related of similar associated bargain price
transaction transaction transaction transaction
transaction transactions (%) transaction and market
price
Subsidiary of the
CCCC Fourth Harbor Project income/ Pricing based on Monetary
holding parent Sales of goods 14,761,062 14,761,062 0.04 14,761,062 /
Engineering Co., Ltd. lease of assets market price funds
company
CCCC Shanghai Subsidiary of the
Project income/ Pricing based on Monetary
Equipment Engineering holding parent Sales of goods 12,501,272 12,501,272 0.04 12,501,272 /
lease of assets market price funds
Co., Ltd. company
CCCC Electrical and Subsidiary of the
Project income/ Pricing based on Monetary
Mechanical Engineering holding parent Sales of goods 10,606,881 10,606,881 0.03 10,606,881 /
lease of assets market price funds
Co., Ltd. company
Subsidiary of the
Sichuan Road & Bridge Project income/ Pricing based on Monetary
holding parent Sales of goods 4,864,250 4,864,250 0.01 4,864,250 /
Group Co., Ltd. lease of assets market price funds
company
Subsidiary of the
Project income/ Pricing based on Monetary
Friede & Goldman, Llc. holding parent Sales of goods 2,688,794 2,688,794 0.01 2,688,794 /
lease of assets market price funds
company
Subsidiary of the
Chongqing Zhongwan Project income/ Pricing based on Monetary
holding parent Sales of goods 1,995,329 1,995,329 0.01 1,995,329 /
Expressway Co., Ltd. lease of assets market price funds
company
CCCC Water
Subsidiary of the
Transportation Planning Project income/ Pricing based on Monetary
holding parent Sales of goods 1,698,113 1,698,113 0.01 1,698,113 /
and Design Institute Co., lease of assets market price funds
company
Ltd.
Road and Bridge
Subsidiary of the
Construction Chongqing Project income/ Pricing based on Monetary
holding parent Sales of goods 1,388,404 1,388,404 0.00 1,388,404 /
Fengfu Expressway lease of assets market price funds
company
Development Co., Ltd.
Road and Bridge
Subsidiary of the
Construction Chongqing Project income/ Pricing based on Monetary
holding parent Sales of goods 1,141,435 1,141,435 0.00 1,141,435 /
Fengshi Expressway lease of assets market price funds
company
Development Co., Ltd.
Subsidiary of the
CCCC Third Harbor Project income/ Pricing based on Monetary
holding parent Sales of goods 695,283 695,283 0.00 695,283 /
Consultants Co., Ltd. lease of assets market price funds
company
China Communications Subsidiary of the
Project income/ Pricing based on Monetary
Construction Company holding parent Sales of goods 566,038 566,038 0.00 566,038 /
lease of assets market price funds
Ltd. company
Subsidiary of the
CCCC Shanghai Dredging Project income/ Pricing based on Monetary
holding parent Sales of goods 499,115 499,115 0.00 499,115 /
Co., Ltd. lease of assets market price funds
company
Subsidiary of the
First Highway Engineering Project income/ Pricing based on Monetary
holding parent Sales of goods 322,161 322,161 0.00 322,161 /
Group Co., Ltd. lease of assets market price funds
company
Subsidiary of the
CCCC First Harbor Project income/ Pricing based on Monetary
holding parent Sales of goods 75,472 75,472 0.00 75,472 /
Consultants Co., Ltd. lease of assets market price funds
company
Chongqing Yongjiang
Subsidiary of the
Expressway Investment Project income/ Pricing based on Monetary
holding parent Sales of goods 29,361 29,361 0.00 29,361 /
and Construction Co., Ltd. lease of assets market price funds
company
of FHEC of CCCC
Subsidiary of the
CCCC Third Harbor Rendering of Project income/ Pricing based on Monetary
holding parent 171,946,593 171,946,593 0.52 171,946,593 /
Engineering Co., Ltd. service lease of assets market price funds
company
Jiangsu CCCC Green Subsidiary of the
Rendering of Project income/ Pricing based on Monetary
Energy Photovoltaic holding parent 32,556,696 32,556,696 0.10 32,556,696 /
service lease of assets market price funds
Technology Co., Ltd. company
China Communications Subsidiary of the
Rendering of Project income/ Pricing based on Monetary
Construction Company holding parent 20,833,485 20,833,485 0.06 20,833,485 /
service lease of assets market price funds
(M) Sdn. Bhd. company
Subsidiary of the
Road & Bridge Rendering of Project income/ Pricing based on Monetary
holding parent 16,972,477 16,972,477 0.05 16,972,477 /
International Co., Ltd. service lease of assets market price funds
company
Section VI Important Events
Reason or great
Pricing Proportion in Settlement differences
Type of Content Price of Amount
principle the amount mode of between the
Related party Relationship related of related related of related Market price
of related of similar associated bargain price
transaction transaction transaction transaction
transaction transactions (%) transaction and market
price
Zhejiang Lvzhou Subsidiary of the
Rendering of Project income/ Pricing based on Monetary
Photovoltaic Technology holding parent 9,234,970 9,234,970 0.03 9,234,970 /
service lease of assets market price funds
Co., Ltd. company
China Communications Subsidiary of the
Rendering of Project income/ Pricing based on Monetary
Construction Company holding parent 6,321,921 6,321,921 0.02 6,321,921 /
service lease of assets market price funds
Ltd. company
CCCC Shanghai Subsidiary of the
Rendering of Project income/ Pricing based on Monetary
Equipment Engineering holding parent 919,995 919,995 0.00 919,995 /
service lease of assets market price funds
Co., Ltd. company
Subsidiary of the
CCCC Financial Leasing Rendering of Project income/ Pricing based on Monetary
holding parent 691,835 691,835 0.00 691,835 /
Co., Ltd. service lease of assets market price funds
company
Subsidiary of the
CCCC Shanghai Dredging Rendering of Project income/ Pricing based on Monetary
holding parent 48,660 48,660 0.00 48,660 /
Co., Ltd. service lease of assets market price funds
company
Subsidiary of the
CCCC (Xiamen) Rendering of Project income/ Pricing based on Monetary
holding parent 18,247 18,247 0.00 18,247 /
Information Co., Ltd service lease of assets market price funds
company
CCCC Photovoltaic Associated Rendering of Project income/ Pricing based on Monetary
128,742 128,742 0.00 128,742 /
Technology Co., Ltd. company service lease of assets market price funds
CCCC Shanghai Subsidiary of the Consigned
Receipt of Pricing based on Monetary
Equipment Engineering holding parent processing for 752,922,950 752,922,950 0.03 752,922,950 /
services market price funds
Co., Ltd. company the Company
Subsidiary of the Consigned
CCCC Third Highway Receipt of Pricing based on Monetary
holding parent processing for 687,713,755 687,713,755 0.02 687,713,755 /
Engineering Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC Third Harbor Receipt of Pricing based on Monetary
holding parent processing for 371,129,367 371,129,367 0.01 371,129,367 /
Engineering Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC Second Harbor Receipt of Pricing based on Monetary
holding parent processing for 222,904,254 222,904,254 0.01 222,904,254 /
Engineering Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC Dredging (Group) Receipt of Pricing based on Monetary
holding parent processing for 158,493,251 158,493,251 0.01 158,493,251 /
Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC First Highway Receipt of Pricing based on Monetary
holding parent processing for 149,740,693 149,740,693 0.01 149,740,693 /
Engineering Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC Tianjin Dredging Co., Receipt of Pricing based on Monetary
holding parent processing for 109,387,957 109,387,957 0.00 109,387,957 /
Ltd. services market price funds
company the Company
No.2 Engineering Co., Subsidiary of the Consigned
Receipt of Pricing based on Monetary
Ltd. of CCCC Third Harbor holding parent processing for 66,133,834 66,133,834 0.00 66,133,834 /
services market price funds
Engineering Co., Ltd. company the Company
Subsidiary of the Consigned
Road & Bridge East China Receipt of Pricing based on Monetary
holding parent processing for 14,183,526 14,183,526 0.00 14,183,526 /
Engineering Co., Ltd. services market price funds
company the Company
CCCC Water
Subsidiary of the Consigned
Transportation Planning Receipt of Pricing based on Monetary
holding parent processing for 14,017,842 14,017,842 0.00 14,017,842 /
and Design Institute Co., services market price funds
company the Company
Ltd.
Subsidiary of the Consigned
Road & Bridge Receipt of Pricing based on Monetary
holding parent processing for 11,689,044 11,689,044 0.00 11,689,044 /
International Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC Shanghai Dredging Receipt of Pricing based on Monetary
holding parent processing for 11,588,582 11,588,582 0.00 11,588,582 /
Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
First Highway Engineering Receipt of Pricing based on Monetary
holding parent processing for 8,304,464 8,304,464 0.00 8,304,464 /
Group Co., Ltd. services market price funds
company the Company
ANNUAL REPORT 2023
Reason or great
Pricing Proportion in Settlement differences
Type of Content Price of Amount
principle the amount mode of between the
Related party Relationship related of related related of related Market price
of related of similar associated bargain price
transaction transaction transaction transaction
transaction transactions (%) transaction and market
price
Subsidiary of the Consigned
CCCC Second Highway Receipt of Pricing based on Monetary
holding parent processing for 2,664,128 2,664,128 0.00 2,664,128 /
Consultants Co., Ltd. services market price funds
company the Company
Consigned
Holding parent Receipt of Pricing based on Monetary
CCCG processing for 1,517,333 1,517,333 0.00 1,517,333 /
company services market price funds
the Company
Subsidiary of the Consigned
CCCC First Harbor Receipt of Pricing based on Monetary
holding parent processing for 1,326,200 1,326,200 0.00 1,326,200 /
Engineering Co., Ltd. services market price funds
company the Company
No.1 Engineering Co., Subsidiary of the Consigned
Receipt of Pricing based on Monetary
Ltd. of CCCC First Harbor holding parent processing for 1,026,549 1,026,549 0.00 1,026,549 /
services market price funds
Engineering Co., Ltd. company the Company
Subsidiary of the Consigned
CCCC Urban Operation Receipt of Pricing based on Monetary
holding parent processing for 712,686 712,686 0.00 712,686 /
Management Co., Ltd. services market price funds
company the Company
CCCC National
Engineering Research Subsidiary of the Consigned
Receipt of Pricing based on Monetary
Center of Dredging holding parent processing for 471,698 471,698 0.00 471,698 /
services market price funds
Technology and company the Company
Equipment Co., Ltd.
Subsidiary of the Consigned
CCCC Third Harbor Receipt of Pricing based on Monetary
holding parent processing for 1,051,663 1,051,663 0.00 1,051,663 /
Consultants Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
CCCC Xingyu Technology Receipt of Pricing based on Monetary
holding parent processing for 230,796 230,796 0.00 230,796 /
Co., Ltd services market price funds
company the Company
Subsidiary of the Consigned
CCCC Design Consulting Receipt of Pricing based on Monetary
holding parent processing for 227,920 227,920 0.00 227,920 /
Group Co., Ltd. services market price funds
company the Company
Subsidiary of the Consigned
China Road & Bridge Receipt of Pricing based on Monetary
holding parent processing for 154,325 154,325 0.00 154,325 /
Corporation services market price funds
company the Company
China Communications Subsidiary of the Consigned
Receipt of Pricing based on Monetary
Information Technology holding parent processing for 112,655 112,655 0.00 112,655 /
services market price funds
Group Co., Ltd. company the Company
Subsidiary of the Consigned
China Communications Receipt of Pricing based on Monetary
holding parent processing for 75,472 75,472 0.00 75,472 /
Materials Co., Ltd. services market price funds
company the Company
Jiangsu CCCC Green Subsidiary of the Consigned
Receipt of Pricing based on Monetary
Energy Photovoltaic holding parent processing for 38,666 38,666 0.00 38,666 /
services market price funds
Technology Co., Ltd. company the Company
Jiangmen Hangtong
Subsidiary of the Consigned
Shipbuilding Co., Ltd. Receipt of Pricing based on Monetary
holding parent processing for 12,637,168 12,637,168 0.00 12,637,168 /
of CCCC Fourth Harbor services market price funds
company the Company
Engineering Co., Ltd.
Consigned
CCCC Photovoltaic Associated Receipt of Pricing based on Monetary
processing for 1,599,475 1,599,475 0.00 1,599,475 /
Technology Co., Ltd. company services market price funds
the Company
CCCC Shanghai Subsidiary of the Providing
Purchase of Pricing based on Monetary
Equipment Engineering holding parent materials for the 300,511,230 300,511,230 0.01 300,511,230 /
goods market price funds
Co., Ltd. company Company
Subsidiary of the Providing
CCCC Tianjin Industry and Purchase of Pricing based on Monetary
holding parent materials for the 234,024,336 234,024,336 0.01 234,024,336 /
Trade Co., Ltd. goods market price funds
company Company
Subsidiary of the Providing
CNPC & CCCC Petroleum Purchase of Pricing based on Monetary
holding parent materials for the 80,031,231 80,031,231 0.00 80,031,231 /
Sales Co., Ltd. goods market price funds
company Company
Subsidiary of the Providing
CCCC Third Harbor Purchase of Pricing based on Monetary
holding parent materials for the 33,092,078 33,092,078 0.00 33,092,078 /
Engineering Co., Ltd. goods market price funds
company Company
Section VI Important Events
Reason or great
Pricing Proportion in Settlement differences
Type of Content Price of Amount
principle the amount mode of between the
Related party Relationship related of related related of related Market price
of related of similar associated bargain price
transaction transaction transaction transaction
transaction transactions (%) transaction and market
price
China Communications Subsidiary of the Providing
Purchase of Pricing based on Monetary
Information Technology holding parent materials for the 27,915,300 27,915,300 0.00 27,915,300 /
goods market price funds
Group Co., Ltd. company Company
Chuwa Risheng (Beijing) Subsidiary of the Providing
Purchase of Pricing based on Monetary
International Trade Co., holding parent materials for the 15,807,655 15,807,655 0.00 15,807,655 /
goods market price funds
Ltd. company Company
Subsidiary of the Providing
CCCC (Xiamen) Purchase of Pricing based on Monetary
holding parent materials for the 12,959,416 12,959,416 0.00 12,959,416 /
Information Co., Ltd goods market price funds
company Company
Subsidiary of the Providing
Shanghai Zhensha Longfu Purchase of Pricing based on Monetary
holding parent materials for the 9,824,711 9,824,711 0.00 9,824,711 /
Machinery Co., Ltd. goods market price funds
company Company
Subsidiary of the Providing
CCCC Fourth Harbor Purchase of Pricing based on Monetary
holding parent materials for the 8,093,363 8,093,363 0.00 8,093,363 /
Consultants Co., Ltd. goods market price funds
company Company
Subsidiary of the Providing
CCCC Third Harbor Purchase of Pricing based on Monetary
holding parent materials for the 4,469,027 4,469,027 0.00 4,469,027 /
Consultants Co., Ltd. goods market price funds
company Company
Subsidiary of the Providing
CCCC Urban Operation Purchase of Pricing based on Monetary
holding parent materials for the 3,966,707 3,966,707 0.00 3,966,707 /
Management Co., Ltd. goods market price funds
company Company
CCCC Tianhe Mechanical Subsidiary of the Providing
Purchase of Pricing based on Monetary
Equipment Manufacturing holding parent materials for the 1,769,912 1,769,912 0.00 1,769,912 /
goods market price funds
Co., Ltd. company Company
Subsidiary of the Providing
Purchase of Pricing based on Monetary
Chuwa Bussan Co., Ltd. holding parent materials for the 251,127 251,127 0.00 251,127 /
goods market price funds
company Company
Subsidiary of the Providing
CCCC Xingyu Technology Purchase of Pricing based on Monetary
holding parent materials for the 233,588 233,588 0.00 233,588 /
Co., Ltd goods market price funds
company Company
CCCC Shanghai Channel Subsidiary of the Providing
Purchase of Pricing based on Monetary
Equipment Industry Co., holding parent materials for the 30,973 30,973 0.00 30,973 /
goods market price funds
Ltd. company Company
Providing
CCCC Photovoltaic Associated Purchase of Pricing based on Monetary
materials for the 553,577 553,577 0.00 553,577 /
Technology Co., Ltd. company goods market price funds
Company
Total / / 7,071,744,604 / / /
Details of large amount of sales returns None
The Company reviewed and approved the “Proposal on Reviewing the Signing of Framework
Agreement on Routine Related Transactions for 2022-2024” at the 2021 Annual General Meeting of
Shareholders. In 2023, the amount of the annual related transactions in the normal business between
Explanation for related transactions the Company and its subsidiaries and CCCG and its subsidiaries was about RMB 7.071 billion, which
did not exceed the upper limit of the amount of routine related transactions approved by the 2021
Annual General Meeting of Shareholders and the expcted upper limit of the amount of routine related
transactions in 2023.
3. Events not disclosed in provisional announcements
Applicable √ Not Applicable
(II) Related transactions arising from acquisition or offering 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 REPORT 2023
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 events Query index
On August 28, 2023, the Company held the 24th meeting of the 8th Board of Directors and the 15th meeting of
the 8th Board of Supervisors. The meetings reviewed and approved the “Proposal on Reviewing the Waiver of the
Preemptive 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”). See Extraordinary Announcement
Zhenhua Heavy Industries increased the registered capital by RMB 10.6493 million in the same proportion of surplus No. 2023-037 for details
reserves, and waived the preemptive right for the cash capital increase of CCCC Leasing. After the completion of
this capital increase, the Company’s equity ratio in CCCC Leasing will drop from 9.00% to 5.82%, corresponding to a
capital contribution of approximately RMB 524 million.
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 finance companies, or between finance
companies 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
Amount incurred in the current period
Maximum Deposit
December 31, Total deposit Total withdrawal December 31,
Related party Relationship daily deposit interest rate
2022 amount in the amount in the 2023
limit range
current period current period
CCCC Finance Subsidiary of the holding
1,600,000,000 0.46%-1.76% 435,568 20,894,262,022 19,294,697,590 1,600,000,000
Company Ltd. parent company
Total / / / 435,568 20,894,262,022 19,294,697,590 1,600,000,000
2. Loan business
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the current period
Related Loan interest December 31, Total loan amount Total repayment December 31,
Relationship Loan limit
party rate range 2022 in the current amount in the 2023
period current period
CCCC Finance Subsidiary of the holding
2,000,000,000 2% 644,000,000 48,840,000 0 692,840,000
Company Ltd. parent company
Total / / / 644,000,000 48,840,000 0 692,840,000
3. Credit business or other financial business
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Related party Relationship Business type Total amount Actual amount incurred
CCCC Finance Company Ltd. Subsidiary of the holding parent company Credit 2,000,000,000 542,527
CCCC Xiongan Financial Leasing Co., Ltd. Subsidiary of the holding parent company Factoring 300,000,000 158,922,791
4. Other description
Applicable √ Not Applicable
(VI) Others
Applicable √ Not Applicable
XIII. 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 REPORT 2023
Unit: ’0,000 Yuan Currency: CNY
Amount Basis for Impacts of
Starting Termination Income Related
Name of Name of Leased involved determining income from
date of date of from transaction Relationship
lessor lessee assets in leased income from leasing on
leasing leasing leasing or not
assets leasing the Company
Shanghai Shanghai
Zhenhua Zhenlong
Lease of August 10,
Heavy Asset 20,659.29 July 9, 2025 4,763.81 Agreed 4,763.81 No
houses 2012
Industries Management
Co., Ltd. Co., Ltd.
Shanghai Shanghai
Zhenhua Changyin
Lease of March 1, February 29,
Heavy Real Estate 20,659.29 3,770.00 Agreed 3,770.00 No
houses 2021 2024
Industries Development
Co., Ltd. Co., Ltd.
Shanghai
Shanghai
Zhenhua
Changyi Lease of August 15, August 14,
Heavy 1,249.77 1,575.08 Agreed 1,575.08 No
Industrial Co., houses 2021 2031
Industries
Ltd
Co., Ltd.
Leasing explanation
None
(II) Guarantee
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
External guarantee of the Company (excluding guarantee to the subsidiaries)
Relation
between Date of Guarantee
Fulfillment
the guarantee Starting Due Amount of Counter by the
Guaranteed Guaranteed Type of Collateral of the Overdue
Guarantor guarantor (signing date of date of overdue guarantee related Relationship
party amount guarantee (if any) guarantee or not
and the date of guarantee guarantee guarantee or not party or
or not
listed agreement) not
company
Total amount of guarantee incurred during the reporting period (excluding guarantee to the
subsidiaries)
Total balance of guarantee at the end of the reporting period (A) (excluding guarantee to the
subsidiaries)
Guarantee of the Company and its subsidiaries to the subsidiaries
Total amount of guarantee to the subsidiaries incurred during the reporting period 444,369,500
Total 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) 314,809,500
Proportion of total amount of guarantee in the net assets of the Company (%) 2.00
Including:
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 the
281,641,737
asset-liability ratio over 70% (D)
Amount of guarantee exceeding 50% of net assets (E)
Total guarantee amount of the above three items (C+D+E) 281,641,737
Explanation 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)
Relation
between Date of Guarantee
Fulfillment
the guarantee Starting Due Amount of Counter by the
Guaranteed Guaranteed Type of Collateral of the Overdue
Guarantor guarantor (signing date of date of overdue guarantee related Relationship
party amount guarantee (if any) guarantee or not
and the date of guarantee guarantee guarantee or not party or
or not
listed agreement) not
company
The Company’s 29th meeting of the 8th Board of Directors held on December 6, 2023 reviewed and
approved the “Proposal on Reviewing the Provision of Guarantees for Korean Subsidiaries”, agreeing that
the Company would provide guarantee support for Shanghai Zhenhua Korea Corporation (hereinafter
referred to as the “Korean subsidiary”), with a guarantee period of 3 years and an upper limit of US$ 15
million. This matter does not need to be submitted to the Company’s general meeting of shareholders for
review. As of December 31, 2023, the Company provided guarantees of US$ 6.17 million for the Korean
subsidiary, equivalent to RMB 33,167,763.
The company's 2022 Annual General Meeting of Shareholders reviewed and approved the “Proposal on
the Company’s 2023 External Guarantee Plan”, agreeing that the Company would provide guarantee
support 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. (hereinafter
referred to as the “GPO Company”), the Company’s 50%-controlled subsidiary, would provide guarantee
support for its wholly-owned subsidiaries. Among them: the guarantee period for the Dutch subsidiary
Description of guarantee
is 3 years, with an upper limit of 11 million euros (equivalent to RMB 81.6519 million); the guarantee
period for GPO Company to its subsidiaries is 3 years, with an upper limit of US$ 200 million (equivalent
to 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$ 77.64
million, equivalent to RMB 549,900,828.00, to its four wholly-owned subsidiaries, with the proportionate
disclosed guarantee equivalent to RMB 274,950,414.00.
The Company’s 2020 Annual General Meeting of Shareholders reviewed and approved the “Proposal on
Providing Guarantees for Subsidiaries”, agreeing that the company would provide guarantee support for
ZPMC 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 and
an upper limit of RMB 400 million (RMB 300 million for ZPMC Machinery Equipment; RMB 100 million for
Terminexus). As of December 31, 2023, the Company’s guarantees for ZPMC Machinery Equipment and
Terminexus have been fully settled.
(III) Consigned cash assets management
1. Consigned financing
(1). General information of consigned financing
Applicable √ Not Applicable
Other information
Applicable √ Not Applicable
(2). Information on individual consigned financing
Applicable √ Not Applicable
Other information
Applicable √ Not Applicable
(3). Provision for impairment of consigned financing
Applicable √ Not Applicable
2. Consigned loans
(1). General information of consigned loans
Applicable √ Not Applicable
Other information
Applicable √ Not Applicable
(2). Individual consigned loans
Applicable √ Not Applicable
ANNUAL REPORT 2023
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 Applicable
XIV. Progress statement on the utiliazation of raised funds
Applicable √ Not Applicable
XV. Other significant events for investors’ judgment of value and investment decision-
making
√ Applicable Not Applicable
The 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 Strategic
Investors and Employee Stock Ownership Platform to Increase Its Capital”, in which the wholly-owned subsidiary
ZPMC Machinery Equipment Services Co., Ltd. (hereinafter referred to as “T Company”) intended to increase its capital
by introducing strategic investors through public listing on the Shanghai United Assets and Equity Exchange and
simultaneously carry out employee stock ownership. See the relevant announcement disclosed by the Company on the
website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on September
23, 2023 (Extraordinary Announcement No. 2023-041) for details. T Company has completed the signing of the capital
increase agreement with relevant parties.
Section VII Changes in Shares and Shareholders' Situation
Section 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 the
reporting period.
2. Notes to changes in shares
Applicable √ Not Applicable
3. Effect of changes in shares on financial 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 Applicable
II. Issuance and listing of securities
(I) Securities issuance by the reporting period
Applicable √ Not Applicable
Particulars about the issuance of securities during the reporting period (for bonds of different interest rates within the
duration, 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 liability
structures
Applicable √ Not Applicable
(III) Existing internal employee ownership
Applicable √ Not Applicable
ANNUAL REPORT 2023
III. Shareholders and actual controller
(I) Total number of shareholders
Total of ordinary shareholders by the end of the reporting period 202,410
Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report 202,830
(II) Table of the shares held by top 10 shareholders, top 10 holders of marketable shares (or shareholders
without trading limited conditions) by the end of reporting period
Unit: share
Shareholdings of top ten shareholders (excluding shares lent through refinancing)
Number of Number of Shares in pledge, marked
Changes in or frozen
shares held at shares with Nature of
Name of shareholder(in full) the reporting Ratio (%)
the end of the trading limited Numberof shareholder
period Share status
period conditions held shares
Overseas
CCCG (HK) Holding Limited 0 916,755,840 17.401 0 None 0
legal person
China Communications Construction State-owned
0 855,542,044 16.239 0 None 0
Company Ltd. legal person
China Communications Construction State-owned
0 663,223,375 12.589 0 None 0
Group Co., Ltd. legal person
CITIC Bank Co., Ltd. - BOCOM Schroder
New Life Flexible Allocation Hybrid -7,841,428 26,701,157 0.51 Unknown Unknown
Securities Investment Fund
Dacheng Fund- Agricultural Bank of
China - Dacheng China Securities -279,200 19,576,720 0.37 Unknown Unknown
Financial Asset Management Plan
VANGUARD EMERGING MARKETS
0 16,888,846 0.32 Unknown Unknown
STOCK INDEX FUND
Harvest Fund - Agricultural Bank
of China - Harvest financial asset -2,148,600 14,984,776 0.28 Unknown Unknown
management plan
VANGUARD TOTAL INTERNATIONAL
0 14,924,161 0.28 Unknown Unknown
STOCK INDEX FUND
China Southern Asset Management-
Agricultural Bank of China - China
Southern Asset Management China -5,628,900 14,227,020 0.27 Unknown Unknown
Securities Financial Asset Management
Plan
Shi Qing 0 13,069,500 0.25 Unknown Unknown
Shareholdings of top 10 shareholders without trading limited conditions
Number of non- restrictive Type and number of shares
Name of shareholder
circulation shares held Type Quantity
CCCG (HK) Holding Limited 916,755,840 Foreign shares listed domestically
China Communications Construction Company Ltd. 855,542,044 RMB ordinary shares
China Communications Construction Group Co., Ltd. 663,223,375 RMB ordinary shares
CITIC Bank Co., Ltd. - BOCOM Schroder New Life Flexible
26,701,157 RMB ordinary shares
Allocation Hybrid Securities Investment Fund
Dacheng Fund- Agricultural Bank of China - Dacheng China
19,576,720 RMB ordinary shares
Securities Financial Asset Management Plan
VANGUARD EMERGING MARKETS STOCK INDEX FUND 16,888,846 Foreign shares listed domestically
Harvest Fund - Agricultural Bank of China - Harvest financial
14,984,776 RMB ordinary shares
asset management plan
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 14,924,161 Foreign shares listed domestically
Section VII Changes in Shares and Shareholders' Situation
Shareholdings of top 10 shareholders without trading limited conditions
Number of non- restrictive Type and number of shares
Name of shareholder
circulation shares held Type Quantity
China Southern Asset Management- Agricultural Bank of
China - China Southern Asset Management China Securities 14,227,020 RMB ordinary shares
Financial Asset Management Plan
Shi Qing 13,069,500 RMB ordinary shares
Explanation of the special accounts for repurchase among
the top ten shareholders
Note to the said shareholders' entrusting voting rights,
entrusted voting rights and waivered voting rights
Among the above top 10 shareholders, CCCG (HK ) Holding Limited, China
Communications Construction Group Co., Ltd. and China Communications Construction
Notes to the related relation or consistent actions of the Company Ltd. are related companies. It was unknown to the Company whether there
above-mentioned shareholders was related relation between other shareholders and whether they belonged to the
concerted actor specified in the “Management Method on Information Disclosure for
Shareholding Change of the Shareholders of Listed Companies”.
Explanation on preferred stock holders with recovered voting
rights and number of stocks held by them
Shares lent by top ten shareholders through refinancing
Applicable √ Not Applicable
Changes in the top ten shareholders compared with the previous period
√ Applicable Not Applicable
Unit: share
Changes in top ten shareholders compared with the end of the previous period
Number of shares held in
Number of shares lent shareholders’ ordinary accounts
Addition/ through refinancing and and credit accounts and shares
withdrawal during not yet returned at the lent through refinancing and
Full name of shareholders
this reporting end of the period not yet returned at the end of
period the period
Total Proportion (%) Total Proportion (%)
VANGUARD EMERGING MARKETS STOCK INDEX FUND Addition - - - -
Harvest Fund - Agricultural Bank of China - Harvest financial asset
Addition 0 0 0 0
management plan
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND Addition - - - -
Shi Qing Addition - - - -
GF Fund- Agricultural Bank of China - GF China Securities
Withdrawal 0 0 0 0
Financial Assets Management Plan
E FUND Management- Agricultural Bank of China - E FUND
Withdrawal 0 0 0 0
Management China Securities Financial Assets Management Plan
Lombarda China Fund- Agricultural Bank of China - Lombarda
Withdrawal 0 0 0 0
China Fund China Securities Financial Assets Management Plan
Yinhua Fund- Agricultural Bank of China - Yinhua China Securities
Withdrawal 0 0 0 0
Financial Asset Management Plan
Shareholdings 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 due
to placement of new shares
Applicable √ Not Applicable
ANNUAL REPORT 2023
IV. Controlling shareholder and actual controller
(I) Controlling shareholder
1. Legal person
√ Applicable Not Applicable
Name China Communications Construction Group Co., Ltd.
Company principal or legal representative Wang Tongzhou
Date of Establishment December 8, 2005
Construction of overseas projects and international bidding projects at home; general contracting for
construction of various special ships, leasing and maintenance of special ship and construction machines;
offshore towage and professional services related to the ocean engineering; technical consultant
services regarding the ship and the supporting port equipment; engaging in the general contracting
of construction projects for ports, channels, highways and bridges both home and abroad (including
technical and economic consultation of engineering, feasibility study, survey, design, construction,
Main business
supervision, procurement
and 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 export
business; real estate development and property management; investment and management of
transportation, hotel and tourism industries.
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 controlling
Interests held in other domestically and shareholder. CCCG and its controlling subsidiaries totally hold 28.97% of the stock equity of Greentown
overseas listed companies in the reporting Holding Co., Ltd. (3900. HK) and they are the controlling shareholders. China Urban and Rural Holding
period Group Co., Ltd., a wholly-owned subsidiary of CCCG, and CCCC Fund jointly hold 33.40% of the stock
equity of Originwater (300070. SZ), and they are the controlling shareholders. CCCG holds 62.35% of CCCC
Design (600720.SH) through CCCC and China Urban-Rural Holding Group Co., Ltd. and it is the controlling
shareholder.
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
(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 REPORT 2023
5. Block diagram of ownership and control relationship between the Company and the actual controller
√ Applicable Not Applicable
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 Applicable
V. Indicate whether the cumulative number of shares put in pledge by the Company’s
controlling shareholder or the largest shareholder and its acting-in-concert parties accounts
for over 80% of their shareholdings in the Company
Applicable √ Not Applicable
Section VIII Preference Shares
VI. Other corporate shareholders holding more than 10%
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Company
Name of corporate Date of Main business or management
principal or legal Organization code Registered capital
shareholder establishment activities
representative
China Communications General contracting of construction
Construction Company Wang Tongzhou October 8, 2006 91110000710934369E 16,165,711,425 p ro j e c t s fo r p o r t s, w a te r ways,
Ltd. highways, bridges, etc.
CCCG (HK) Holding September 5, Investment management, project
Peng Guangsheng / HKD 1,000
Limited 2017 investment, project financing
CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of China Communications
Description
Construction Group Co., Ltd.
VII. Particulars about restrictions on shareholding reduction
Applicable √ Not Applicable
VIII. Specific implementation of share repurchases during the reporting period
Applicable √ Not Applicable
Section VIII Preference Shares
Applicable √ Not Applicable
ANNUAL REPORT 2023
Section IX Bonds
I. Enterprise bonds, corporate bonds and debt financing instruments of non-financial
enterprises
√ Applicable Not Applicable
(I) Enterprise bonds
Applicable √ Not Applicable
(II) Corporate bonds
Applicable √ Not Applicable
(III) Interbank bond market debt financing instrument of non-financial enterprises
√ Applicable Not Applicable
1. Basic information of debt financing instruments of non-financial enterprises
Unit: Yuan Currency: CNY
Investor Risk of
Maturity Outstanding Interest Payment Trading eligibility Trading termination
Name of bond Abbreviation Code Issue date Value date
date balance rate (%) method venue arrangements mechanism of listing
(if any) and trading
Shanghai Zhenhua
Heavy Industries 22 ZPMC Centralized
Co., Ltd. 2022 MTNO01 book-
August 22, August 24, December Aug.24 Interbank
medium-term (sci-tech 102281893 500,000,000 3.22 entry and N/A
2022 2022 31, 2099 every year market
notes series I (sci- innovation centralized
tech innovation note) placement
note)
Company’s response to the risk of termination of listing of bonds
Applicable √ Not Applicable
Overdue bonds
Applicable √ Not Applicable
Interest 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
Signed by the
Agency name Office address Person to contact Contact number
Accountants
Bank of Communications Co., Ltd. No.188 Yincheng Middle Road, Shanghai - Xiong Han 021-38579212
Industrial Bank Tower, 398 Middle Jiangbin Lin Chen, 010-89926551,
Industrial Bank Co., Ltd. -
Blvd., Taijiang District, Fuzhou, Fujian Cheng Qiuyun 021-62677777
17/F, PICC Building, No.2 Jianguomenwai
China Lianhe Credit Rating Co. Ltd. - Yang Heng 010-85679696
Street, Chaoyang District, Beijing
Section IX Bonds
Signed by the
Agency name Office address Person to contact Contact number
Accountants
50/F, Shanghai World Financial Center,
Ernst & Young Hua Ming LLP No. 100 Century Ave., Pudong New Area, - Gao Chong 021-22288888
Shanghai
58F, Shanghai Tower, No. 501 Yincheng
Shanghai Duan & Duan Law Firm Middle Road, Lujiazui Sub-district, Pudong - Wang Xiaobo 021-32230722
New Area, Shanghai
Changes in the above intermediary agencies
Applicable √ Not Applicable
4. Use of raised funds at the end of the reporting period
Applicable √ Not Applicable
Progress and operating benefits of the raised funds used for construction projects
Applicable √ Not Applicable
Change in the use of above funds raised from bonds during the reporting period
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
5. Adjustment of credit rating results
Applicable √ Not Applicable
Other 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 financing instruments of non-financial enterprises
Applicable √ Not Applicable
(IV) The loss in the scope of consolidated financial statements during the reporting period exceeding
10% 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 for
information disclosure matters, as well as the impact of conditions agreed or promised in the bond
prospectus on the rights and interests of bond investors during the reporting period
Applicable √ Not Applicable
ANNUAL REPORT 2023
(VII) Main accounting data and financial indexes of the Company in recent 2 years as of the end of the
reporting period
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Main indexes 2023 2022 Year-on-year change (%) Reason of change
Net profit attributable to shareholders of the
listed company after deducting the non-recurring 274,145,961 414,835,324 -33.91
profits and losses
Current ratio 0.94 1.07 -12.15
Quick ratio 0.41 0.33 24.24
Asset-liability ratio (%) 77.77 76.83 +0.94
EBITDA all debt ratio 0.05 0.05 0
Interest coverage ratio 1.81 1.56 16.03
Cash interest coverage ratio 5.48 2.92 87.67
EBITDA interest coverage ratio 3.22 2.74 17.52
Loan repayment ratio (%) 100 100 0
Interest coverage ratio (%) 100 100 0
II. Information about convertible corporate bonds
Applicable √ Not Applicable
Section X Financial Report
Section X Financial Report
I. Auditors’ Report
√ Applicable Not Applicable
Auditors' Report
Ernst & Young (2024) SZ No. 70020902_B01
Shanghai Zhenhua Heavy Industries Co., Ltd.
All shareholders of Shanghai Zhenhua Heavy Industries Co., Ltd.:
(I) Opinion
We have audited the financial 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 in
shareholders’ equity and the Company’s statement of changes in owners’ equity and the consolidated statement of cash
flows and the Company's statement of cash flows for the year then ended as well as the notes to the financial statements.
In our opinion, the financial statements of the Company attached are prepared, in all material respects, in accordance
with the Accounting Standards for Business Enterprises, and fairly present the consolidated financial position and the
Company's financial position as at December 31, 2023 and the consolidated operating results and cash flows and the
Company’s operating results and cash flows for the year then ended.
(II) Basis for Our Opinions
We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Our responsibilities
under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements
section of this auditors’ report. According to the Code of Ethics for Certified Public Accountants of China,we are
independent of the Company, and we have fulfilled other responsibilities in the aspect of code of ethics. We believe that
the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
(III) Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements for the current period. The response to these matters is based on the overall audit of the financial
statements and the formation of audit opinions. We do not express our opinions on these matters separately. The
following description of how our audit addressed the key audit matter is also against this background.
We have fulfilled the responsibilities stated in “Responsibilities of Certified Public Accountant for Auditing of Financial
Statement” in this report, including the responsibilities related to these key auditing matters. Correspondingly, our
auditing work includes the implementation of the auditing procedure designed for dealing with the great misstatement
risks of the financial 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, offers a foundation for releasing the
auditing opinions of the financial statements.
ANNUAL REPORT 2023
Key Audit Matters: How our audit addressed the key audit matter:
1. Inventory depreciation reserves
Shanghai Zhenhua Heavy Industries Co., Ltd. is mainly engaged in
manufacturing the port container crane; in addition, it is also engaged in
the manufacture of bulk handling machine, offshore heavy-duty machine
and large-sized steel structure. Its inventories mainly include raw materials,
outsourcing parts and components, products in the process and inventory
Our procedure mainly included knowing and testing the validity of the
goods. Since the production cycle of the products is relatively long, the
control related to the provision of inventory depreciation reserves and
net realizable value of the related inventory may fluctuate with the change
the method of calculating the net realizable value of the Group. We also
in the market demand, resulting in the inventory depreciation risks. The
implemented the related auditing procedures over the inventory such as
management sets aside the inventory depreciation reserves according
supervision of inventory to verify whether the management had marked
to the balance of the inventory cost and the net realizable value. The net
the inventory with slow turnover and defectives and taken into full account
realizable value is determined as per the estimated selling price of the
in provision of inventory depreciation reserves. In addition, we obtained the
inventory minus the cost, the estimated selling expenses and the related
computation sheet of provision of inventory depreciation reserves from the
taxes that may occur in the completion on the assumption that the
management, rechecked the calculation method and result. As to the key
management layer adopts a certain estimate and hypothesis in determining
elements taken into consideration by the management in calculating the
the net realizable value. In case of difference between the actual figure and
net realizable value, including the estimated selling price and the cost that
the originally estimated figure, the related balance will affect the book value
may occur till completion, we evaluated the hypothesis and the estimates
of the inventory and the depreciation loss in the estimated fluctuation.
through analyzing the related historical data and comparing the after-date
As of December 31, 2023, in the consolidated financial statements, the
data of Shanghai Zhenhua Heavy Industries Co., Ltd. We also rechecked the
balance of inventories was RMB 25.15 billion and the reserve for inventory
disclosure of inventory depreciation reserves in financial statements.
depreciation was RMB 0.87 billion; in the financial statements of the
Company, the balance of inventories was RMB 22.59 billion and the reserve
for inventory depreciation was RMB 0.87 billion.
The accounting policy and other disclosures regarding the inventory are
stated in Note III (10), Note III (31) and Note V (8) of the financial statement.
2. Provision for bad debts of accounts receivable
The accounts receivable of Shanghai Zhenhua Heavy Industries Co., Ltd. is
mainly from the business contract on port machine and ocean engineering
manufacturing. Since it involves large contracted value, long construction
period, relatively complicated technical parameters, the implementation
of the contract may be affected by the periodicity of the economic
Our procedure mainly included the evaluation of the accounting estimate
environment. The accounts receivable has certain risk in the recovery in case
relating to the depreciation reserves, such as the financial status and credit
of any dispute in contract or the industry is in recession. The provisions for
rating of the counterpart; checked the account age of accounts receivable
bad debts of accounts receivable are recognized on the basis of estimated
and historical repayment record and evaluated whether the financial
credit losses, involving major judgment and estimates. The management of
problems of the counter party had effects on the recovery of the accounts
analyzed the financial position of counter parties, guarantee acquired for
receivable; for the accounts receivable evaluated based on the portfolio,
accounts receivable, historical repayment records of accounts receivable, as
we rechecked the management's setting of credit risk features portfolio,
well as the credit rating and future economic situations of counter parties
checked the key information such as account age and credit record of each
for evaluating the credit risk of accounts receivable.
portfolio by sampling, and rechecked the basis of management's evaluation
As of December 31, 2023, in the consolidated financial statements, the
of credit risk and expected credit loss amount based on the credit risk
balance of accounts receivable was RMB 9.84 billion and the provision
features portfolio, including testing historical default data and checking the
for bad debts of accounts receivable was RMB 2.57 billion; in the financial
actual credit loss in the current year; rechecked the disclosure of bad debt
statements of the Company, the balance of accounts receivable was RMB
provision for accounts receivable in financial statements.
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 bad
debts of accounts receivable are stated in Note III (9), Note III (31), Note V (4)
and Note XIII (1) of the financial statements.
Section X Financial Report
Key Audit Matters: How our audit addressed the key audit matter:
3. Revenue recognition
Our procedure mainly included evaluating and testing the management’s
Most of the revenue of Shanghai Zhenhua Heavy Industries Co., Ltd. internal control related to revenue recognition, selected the sales contract
comes from the one of the construction contracts on the large-sized port with significant amount, checked the important contract terms related
equipment, heavy equipment, steel structure and construction projects to revenue recognition, and evaluated the management’s accounting
customized by the customer. judgment and estimate on performance obligations, revenue recognition
Since the operating revenue is one of the key performance indicators of amount (including variable consideration) and the recognition at a certain
Shanghai Zhenhua Heavy Industries Co., Ltd., there may be a risk of material time point or within a period of time. Through selecting the samples, we
misstatement in whether it is recognized and presented in the appropriate verified whether the contract revenue recognized in the year conformed
financial statement period, so we identify revenue recognition as a key audit to the revenue recognition conditions; implemented the cutoff check
matter. procedure to validate the revenue was confirmed in the proper accounting
In 2023, in the consolidated financial statements, the operating revenue was period. For the revenue recognized in a certain period of time, we evaluated
RMB 32.93 billion; in the financial statements of the Company, the operating the judgment and estimate of the total contract cost and total processing
revenue was RMB 28.45 billion. amount made by the management, and made sampling to calculate
The accounting policy and other disclosures regarding the operating and check the income determined by the occurred contract cost and the
revenue are stated in Note III (22), Note III (31), Note V (46) and Note XIII (4) expected total contract cost again; implemented the analysis procedure
of the financial statements. against the changes in revenue and gross profit of various businesses;
rechecked the disclosure of revenue recognition in financial statements.
(IV) Other Information
The management of Shanghai Zhenhua Heavy Industries Co., Ltd. shall be responsible for other information. The other
information comprises information of the annual report, but excludes the financial statements and our auditors’ report.
Our opinion on the financial statements does not cover the other information, and we do not and will not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information identified
above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
our 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. In
this regard, we have nothing to report.
(V) Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Management is responsible for preparing the financial statements in accordance with the requirements of Accounting
Standards for Business Enterprises to achieve a fair presentation, and for designing, implementing and maintaining
internal control that is necessary to ensure that the financial statements are free from material misstatements, whether
due to frauds or errors.
In preparing the financial 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 the
Management 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 financial 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 from
material 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 the
audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and
are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
ANNUAL REPORT 2023
During the process of an audit conducted in accordance with audit standards, we exercise professional judgment and
maintain professional scepticism throughout the audit. Meanwhile, we also implement the following work:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of 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 the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the ability of Shanghai Zhenhua Heavy Industries Co., Ltd. to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to, in our auditors' report, draw attention of the users of statements to the
related disclosures in the financial statements; if such disclosures are inadequate, we should modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or
conditions 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 financial statements, and
evaluate whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision
and 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, significant
audit findings and other matters, including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them in regard to all relationships and other matters
that may reasonably be thought to affect our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because
the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Section X Financial Report
Ernst & Young Hua Ming LLP Certified Public Accountant of China:
(Engagement Partner)
Certified Public Accountant of China:
Beijing, China March 28, 2024
ANNUAL REPORT 2023
II. Financial Statements
Consolidated Balance Sheet
As at December 31, 2023
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
Item Note As at December 31, 2023 As at December 31, 2022
Current assets:
Monetary funds VII (1) 5,105,078,436 2,397,047,713
Settlement provisions
Lending funds
Held-for-trading financial assets VII (2) 720,594,675 877,483,342
Derivative financial assets VII (3)
Notes receivable VII (4) 14,122,031 56,114,657
Accounts receivable VII (5) 7,266,298,102 7,193,649,855
Receivables financing VII (7) 965,569,122 439,912,428
Advances to suppliers VII (8) 1,313,834,063 951,212,422
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables VII (9) 1,245,727,441 995,545,297
Including: Interest receivable
Dividend receivable 8,000,000
Financial assets purchased under agreements to resell
Inventories VII (10) 24,281,402,176 21,513,379,348
Contract assets VII (6) 2,779,633,134 3,243,073,136
Assets held for sale VII (11)
Non-current assets due within one year VII (12) 1,341,408,631 900,213,411
Other current assets VII (13) 476,726,381 279,067,341
Total current assets 45,510,394,192 38,846,698,950
Non-current assets:
Disbursement of loans and advances
Debt investment VII (14)
Other debt investments VII (15)
Long-term receivables VII (16) 1,457,182,459 2,402,265,565
Long-term equity investments VII (17) 1,956,257,622 2,002,879,925
Other equity instrument investment VII (18) 104,859,374 73,475,619
Other non-current financial assets VII (19)
Investment properties VII (20) 414,931,428 437,494,135
Fixed assets VII (21) 19,990,882,347 20,663,113,030
Construction in progress VII (22) 5,184,520,534 4,838,814,052
Productive biological assets
Oil and gas assets
Right-of-use assets VII (25) 62,630,180 11,931,451
Intangible assets VII (26) 4,093,419,088 3,553,837,771
Development expenditures
Goodwill VII (27) 270,172,367 268,245,693
Long-term deferred expenses VII (28) 1,055,983 409,870
Deferred income tax assets VII (29) 893,698,896 867,941,451
Other non-current assets VII (30) 4,924,571,621 4,246,061,211
Total non-current assets 39,354,181,899 39,366,469,773
Total assets 84,864,576,091 78,213,168,723
Current liabilities:
Short-term borrowings VII (32) 4,781,640,779 1,793,682,952
Borrowings from the Central Bank
Borrowing funds
Held-for-trading financial liabilities
Section X Financial Report
Item Note As at December 31, 2023 As at December 31, 2022
Derivative financial liabilities
Notes payable VII (35) 5,533,470,582 5,401,258,897
Accounts payable VII (36) 8,616,059,138 7,255,123,334
Advances from customers
Contract liabilities VII (38) 19,230,649,196 13,348,150,197
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable VII (39) 40,097,393 38,074,154
Tax payable VII (40) 324,641,134 238,103,875
Other payables VII (41) 1,021,376,260 1,314,688,315
Including: Interest payable
Dividends payable 6,593 6,593
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within a year VII (43) 8,650,700,389 6,961,445,218
Other current liabilities VII (44)
Total current liabilities 48,198,634,871 36,350,526,942
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings VII (45) 15,105,224,079 21,019,572,646
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities VII (47) 31,548,184 7,676,707
Long-term payables VII (48) 1,744,502,983 1,931,340,734
Long-term payroll payable
Estimated liabilities VII (50) 168,217,597 168,241,316
Deferred income VII (51) 369,054,982 332,419,380
Deferred income tax liabilities VII (29) 133,272,270 99,240,972
Other non-current liabilities VII (52) 247,185,330 181,805,207
Total non-current liabilities 17,799,005,425 23,740,296,962
Total liabilities 65,997,640,296 60,090,823,904
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) VII (53) 5,268,353,501 5,268,353,501
Other equity instruments VII (54) 500,000,000 500,000,000
Including: preferred stock
Perpetual bond 500,000,000 500,000,000
Capital reserves VII (55) 4,882,590,778 4,842,515,715
Less: treasury stock
Other comprehensive income VII (57) 59,000,302 24,865,987
Special reserves VII (58) 10,525,094 2,945,560
Surplus reserves VII (59) 1,711,305,045 1,703,918,676
General risk preparation
Undistributed profits VII (60) 3,324,778,074 2,825,870,678
Total owners' equities attributable to the owners of parent company 15,756,552,794 15,168,470,117
Minority equity 3,110,383,001 2,953,874,702
Total owners’ equity (or shareholders' equity) 18,866,935,795 18,122,344,819
Total liabilities and owners’ equity (or shareholders' equity) 84,864,576,091 78,213,168,723
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT 2023
Balance Sheet of the Parent Company
December 31, 2023
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
Item Note As at December 31, 2023 As at December 31, 2022
Current assets:
Monetary funds 3,759,568,695 722,079,840
Held-for-trading financial assets 182,724,222 239,784,587
Derivative financial assets
Notes receivable 56,114,657
Accounts receivable XIX (1) 19,685,759,151 18,014,241,050
Receivables financing 638,394,101 297,356,630
Advances to suppliers 1,204,312,330 6,860,717,286
Other receivables XIX (2) 3,373,418,359 1,680,563,614
Including: Interest receivable
Dividend receivable 315,789,096
Inventories 21,719,656,262 18,530,057,990
Contract assets 1,854,052,360 1,867,489,992
Assets held for sale
Non-current assets due within one year
Other current assets 305,040,708 175,036,344
Total current assets 52,722,926,188 48,443,441,990
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments XIX (3) 9,456,761,435 9,389,579,244
Other equity instrument investment 104,859,374 73,475,619
Other non-current financial assets
Investment properties 414,931,428 437,494,135
Fixed assets 3,741,477,947 3,865,130,627
Construction in progress 916,537,474 647,322,776
Productive biological assets
Oil and gas assets
Right-of-use assets 15,253,224 44,765
Intangible assets 1,393,384,863 1,432,796,201
Development expenditures
Goodwill
Long-term deferred expenses 124,771
Deferred income tax assets 871,331,750 833,341,377
Other non-current assets 823,808,086 530,196,047
Total non-current assets 17,738,470,352 17,209,380,791
Total assets 70,461,396,540 65,652,822,781
Current liabilities:
Short-term borrowings 4,091,640,779 1,269,182,952
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 5,199,186,754 5,252,294,408
Accounts payable 5,166,087,023 3,610,603,937
Advances from customers
Section X Financial Report
Item Note As at December 31, 2023 As at December 31, 2022
Contract liabilities 18,367,419,237 12,525,059,840
Payroll payable 29,378,564 29,189,818
Tax payable 140,507,385 82,609,138
Other payables 1,384,628,567 2,716,399,244
Including: Interest payable
Dividends payable 6,593 6,593
Liabilities held for sale
Non-current liabilities due within one year 8,198,412,536 6,152,492,930
Other current liabilities
Total current liabilities 42,577,260,845 31,637,832,267
Non-current liabilities:
Long-term borrowings 12,250,338,715 18,447,465,656
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities 8,137,322
Long-term payables
Long-term payroll payable
Estimated liabilities 147,187,314 154,863,743
Deferred income 267,369,648 257,656,046
Deferred income tax liabilities
Other non-current liabilities 5,852,338 2,321,173
Total non-current liabilities 12,678,885,337 18,862,306,618
Total liabilities 55,256,146,182 50,500,138,885
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) 5,268,353,501 5,268,353,501
Other equity instruments 500,000,000 500,000,000
Including: preferred stock
Perpetual bond 500,000,000 500,000,000
Capital reserves 4,894,907,348 4,914,468,683
Less: treasury stock
Other comprehensive income 31,409,336 20,882,527
Special reserves 1,422,294
Surplus reserves 1,710,796,772 1,703,410,403
Undistributed profits 2,798,361,107 2,745,568,782
Total owners’ equity (or shareholders' equity) 15,205,250,358 15,152,683,896
Total liabilities and owners’ equity (or shareholders' equity) 70,461,396,540 65,652,822,781
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
ANNUAL REPORT 2023
Consolidated Income Statement
January to December in 2023
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
Item Note 2023 2022
I. Total operating revenue 32,933,263,802 30,191,792,987
Including: Operating revenue VII (61) 32,933,263,802 30,191,792,987
Interest income
Premiums earned
Fee and commission income
II. Total operating cost 31,689,837,163 29,226,104,243
Including: operating costs VII (61) 28,480,385,794 26,145,431,986
Interest expenses
Fee and commission expense
Surrender value
Net amount of compensation payout
Net reserves for insurance liabilities
Policy holder dividend expense
Reinsurance expenses
Taxes and surcharges VII (62) 291,299,625 174,759,457
Selling and distribution expenses VII (63) 211,361,193 176,805,664
General and administrative expenses VII (64) 849,183,436 835,690,168
Research and development expenditures VII (65) 1,311,556,665 1,118,337,091
Financial expenses VII (66) 546,050,450 775,079,877
Including: interest expenses 965,865,812 1,038,321,065
Interest income 429,793,598 413,595,714
Plus: other incomes VII (67) 99,289,337 104,014,204
Income from investment (loss expressed with “-”) VII (68) 67,909,400 204,359,358
Including: Income from investment of joint venture and cooperative enterprise 78,028,096 170,402,945
Income from derecognition of financial assets measured at amortized cost -115,312,416 -20,135,378
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”) VII (70) -27,339,814 -276,050,580
Credit impairment losses (loss expressed with “-”) VII (71) -276,310,095 -346,156,434
Assets impairment losses (loss expressed with “-”) VII (72) -428,844,200 -92,510,638
Income from disposal of assets (loss expressed with “-”) VII (73) 79,038,662 66,186,622
III. Operating profits (loss expressed with “-”) 757,169,929 625,531,276
Plus: non-operating income VII (74) 30,243,969 32,139,607
Less: non-operating expenditure VII (75) 2,256,229 2,436,095
IV. Total profits (total loss expressed with “-”) 785,157,669 655,234,788
Less: income tax expenses VII (76) 138,613,040 57,672,440
V. Net profits (net loss expressed with “-”) 646,544,629 597,562,348
(I) Classified by business continuity
1. Net profits from ongoing operation (net loss expressed with “-”) 646,544,629 597,562,348
2. Net profits from discontinuing operation (net loss expressed with “-”)
(II) Classified by ownership
1. Net profit attributable to the shareholders of parent company (net loss expressed with “-”) 519,978,765 371,937,232
2. Minority interests (net loss expressed with “-”) 126,565,864 225,625,116
Section X Financial Report
Item Note 2023 2022
VI. Net of tax of other comprehensive income VII (77) 45,425,366 122,166,570
(I) Net amount of after-tax other comprehensive income attributable to the owners of the
34,134,315 94,221,045
parent company
1. Other comprehensive income that can't be reclassified into profit and loss 10,704,692 6,116,237
(1) Remeasure the variation of net indebtedness or net asset of defined benefit 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 investments 10,704,692 6,116,237
(4) Fair value change of enterprise credit risks
2. Other comprehensive income that will be reclassified into profit and loss 23,429,623 88,104,808
(1) Other comprehensive income that will be reclassified into profit and loss in the invested
-718,408 20,743,893
enterprise under equity method
(2) Fair value change of other debt investments
(3) Amount of financial assets reclassified into other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedging reserve
(6) Translation reserve 24,148,031 67,360,915
(7) Others
(II) Net of tax of other comprehensive income attributable to the minority shareholders 11,291,051 27,945,525
VII. Total comprehensive income 691,969,995 719,728,918
(I) Total comprehensive income belonging to parent company 554,113,080 466,158,277
(II) Total comprehensive income belonging to minority shareholders 137,856,915 253,570,641
VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share) 0.10 0.07
(II) Diluted earnings per share (Yuan/share) 0.10 0.07
In case of business combination under common control in current period, the net profit realized by the combined party
before combination was RMB 0, and the net profit 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 REPORT 2023
Income Statement of Parent Company
January to December in 2023
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
Item Note 2023 2022
I. Operating revenue XIX (4) 28,449,047,821 26,167,200,140
Less: operating costs XIX (4) 25,824,140,425 23,715,294,401
Taxes and surcharges 215,477,341 99,236,620
Selling and distribution expenses 155,665,223 155,895,902
General and administrative expenses 445,853,080 440,171,981
Research and development expenditures 892,691,771 813,395,559
Financial expenses 454,757,877 884,406,720
Including: interest expenses 712,367,582 799,727,505
Interest income 81,538,834 41,733,102
Plus: other incomes 38,130,119 75,037,357
Income from investment (loss expressed with “-”) XIX (5) 191,810,563 604,019,489
Including: Income from investment of joint venture and cooperative enterprise 77,665,390 170,768,840
Income from derecognition of financial assets measured at amortized cost -115,312,416 -20,135,378
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”) -49,259,201 -253,335,714
Credit impairment losses (loss expressed with “-”) -248,116,095 -274,770,970
Assets impairment losses (loss expressed with “-”) -398,239,554 -71,850,880
Income from disposal of assets (loss expressed with “-”) 30,720,459 4,769,913
II. Operating profits (loss expressed with “-”) 25,508,395 142,668,152
Plus: non-operating income 13,763,655 12,598,476
Less: non-operating expenditure 1,660,230 1,097,149
III. Total profits (total loss expressed with “-”) 37,611,820 154,169,479
Less: income tax expenses -36,251,874 -92,432,319
IV. Net profits (loss expressed with “-”) 73,863,694 246,601,798
(I) Net profits from ongoing operation (net loss expressed with “-”) 73,863,694 246,601,798
(II) Net profits from discontinuing operation (net loss expressed with “-”)
V. Net of tax of other comprehensive income 10,526,809 29,497,087
(I) Other comprehensive income that can't be reclassified into profit and loss 10,704,692 6,116,237
1. Remeasure the variation of net indebtedness or net asset of defined benefit 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 investments 10,704,692 6,116,237
4. Fair value change of enterprise credit risks
(II) Other comprehensive income that will be reclassified into profit and loss -177,883 23,380,850
1. Other comprehensive income that will be reclassified into profit and loss in the invested
-718,408 20,743,893
enterprise under equity method
2. Fair value change of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve 540,525 2,636,957
7. Others
VI. Total comprehensive income 84,390,503 276,098,885
VII. 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 Report
Consolidated Statement of Cash Flows
January to December in 2023
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
Item Note 2023 2022
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 38,828,500,433 25,267,511,264
Net increase of customer deposit and deposit from other banks
Net increase of borrowings from central bank
Net increase of borrowing funds from other financial institutions
Cash from obtaining original insurance contract premium
Net cash received from reinsurance business
Net increase in the deposits and investment of insured
Cash from interest, handling charges and commissions
Net increase of borrowing funds
Net increase of repurchase of business funds
Net cash from acting trading securities
Refund of tax and levies 416,830,589 855,636,866
Other cash received related to operating activities 676,958,575 244,003,096
Subtotal cash inflows from operating activities 39,922,289,597 26,367,151,226
Cash paid for goods purchased and services received 30,775,739,275 19,831,977,453
Net increase of customer loans and advances
Net increase of amount due from central bank and interbank
Cash paid for original insurance contract claims payment
Net increase of lending funds
Cash paid for interest, handling charges and commissions
Cash paid for policy dividend
Cash paid to and for employees 2,508,297,766 2,574,314,378
Taxes and fees paid 697,045,919 594,993,030
Other cash paid related to operating activities 757,022,191 797,302,342
Subtotal cash outflows from operating activities 34,738,105,151 23,798,587,203
Net cash flows from operating activities 5,184,184,446 2,568,564,023
II. Cash flows from investment activities:
Cash from investment withdrawal 129,548,854 17,165,758
Cash from investment income 234,193,072 159,044,219
Net cash received from disposal of fixed assets, intangible assets and other long-term
105,378,156 19,391,609
assets
Net cash from disposal of subsidiaries and other business units
Other cash received related to investment activities 114,994,970 209,457,444
Subtotal cash inflows from investment activities 584,115,052 405,059,030
Cash paid for purchase of fixed assets, intangible assets and other long-term assets 746,956,678 488,778,059
Cash paid for investments 18,790,000
Net increase in hypothecated loan
Net cash paid for obtaining subsidiaries and other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 765,746,678 488,778,059
Net cash flow from investment activities -181,631,626 -83,719,029
ANNUAL REPORT 2023
Item Note 2023 2022
III. Cash flows from financing activities:
Cash from absorption of investments 170,101,094 98,327,900
Including: cash received from subsidies’ absorption of minority shareholders’
170,101,094 98,327,900
investment
Cash received from borrowings 26,666,299,568 38,626,275,738
Other cash received related to financing activities 1,134,318,331 618,107,748
Cash received from issuance of other equity instruments 500,000,000
Cash received from issuance of bonds 500,000,000
Subtotal cash inflows from financing activities 27,970,718,993 40,342,711,386
Cash repayments of amounts borrowed 27,644,066,754 42,832,240,800
Cash paid for distribution of dividends, profits or interest expenses 1,080,107,143 1,395,285,252
Including: dividends and profits paid by subsidiaries to minority shareholders 93,141,010 58,000,000
Other cash paid related to financing activities 1,638,264,999 838,344,871
Subtotal cash outflows from financing activities 30,362,438,896 45,065,870,923
Net cash flows from financing activities -2,391,719,903 -4,723,159,537
IV. Impact of exchange rate movements on cash and cash equivalents 46,235,551 163,578,103
V. Net increase of cash and cash equivalents 2,657,068,468 -2,074,736,440
Plus: beginning balance of cash and cash equivalents 2,375,101,437 4,449,837,877
VI. Ending balance of cash and cash equivalents 5,032,169,905 2,375,101,437
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
Section X Financial Report
Statement of Cash Flows of the Parent Company
January to December in 2023
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Unit: Yuan Currency: CNY
Item Note 2023 2022
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 31,008,944,150 22,387,866,565
Refund of tax and levies 300,080,487 635,424,765
Other cash received related to operating activities 636,768,375 225,294,772
Subtotal cash inflows from operating activities 31,945,793,012 23,248,586,102
Cash paid for goods purchased and services received 25,004,851,532 21,040,995,998
Cash paid to and for employees 1,351,747,671 1,321,000,912
Taxes and fees paid 207,703,416 123,242,978
Other cash paid related to operating activities 375,422,856 381,273,867
Subtotal cash outflows from operating activities 26,939,725,475 22,866,513,755
Net cash flows from operating activities 5,006,067,537 382,072,347
II. Cash flows from investment activities:
Cash from investment withdrawal 7,801,165 17,165,758
Cash from investment income 661,183,014 236,682,551
Net cash received from disposal of fixed assets, intangible assets and other long-term assets 30,720,458 18,283,472
Net cash from disposal of subsidiaries and other business units
Other cash received related to investment activities
Subtotal cash inflows from investment activities 699,704,637 272,131,781
Cash paid for purchase of fixed assets, intangible assets and other long-term assets 179,032,663 286,375,311
Cash paid for investments 132,957,200 208,679,973
Net cash paid for obtaining subsidiaries and other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 311,989,863 495,055,284
Net cash flow from investment activities 387,714,774 -222,923,503
III. Cash flows from financing activities:
Cash from absorption of investments
Cash received from borrowings 24,845,294,619 36,266,553,328
Other cash received related to financing activities 1,015,336,873 611,100,376
Cash received from issuance of bonds 500,000,000
Other cash received related to financing activities 500,000,000
Subtotal cash inflows from financing activities 25,860,631,492 37,877,653,704
Cash repayments of amounts borrowed 26,172,827,571 39,402,630,672
Cash paid for distribution of dividends, profits or interest expenses 747,532,915 1,096,677,413
Other cash paid related to financing activities 1,370,807,692 500,006,220
Subtotal cash outflows from financing activities 28,291,168,178 40,999,314,305
Net cash flows from financing activities -2,430,536,686 -3,121,660,601
IV. Impact of exchange rate movements on cash and cash equivalents 41,581,886 75,244,800
V. Net increase of cash and cash equivalents 3,004,827,511 -2,887,266,957
Plus: beginning balance of cash and cash equivalents 707,377,446 3,594,644,403
VI. Ending balance of cash and cash equivalents 3,712,204,957 707,377,446
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
Consolidated Statement of Changes in Owners’ Equity
January-December 2023
Unit: Yuan Currency: CNY
2023
Equity attributable to the owners of the parent company
Item Other equity instruments Less: Other Minority equity Total owners’ equity
Paid-in capital Special Surplus General risk Undistributed
Capital reserves treasury comprehensive Others Sub-total
(or share capital) Preferred Perpetual Others reserves reserves preparation profits
stock bond stock income
I. Balance at the end of the last year 5,268,353,501 500,000,000 4,842,515,715 24,8 65,987 2,945,560 1,703,918,676 2,825,870,678 15,168,470,117 2,953,874,702 18,122,344,819
Plus: changes in accounting policies
Prior period error correction
Others
II. Beginning balance in current year 5,268,353,501 500,000,000 4,842,515,715 24,865,987 2,945,560 1,703,918,676 2,825,870,678 15,168,470,117 2,953,874,702 18,122,344,819
III. Increase/decrease in the current year (“-” for
40,075,063 34,134,315 7,579,534 7,386,369 498,907,396 588,082,677 156,508,299 744,590,976
decrease)
(I) Total comprehensive income 34,134,315 519,978,765 554,113,080 137,856,915 691,969,995
(II) Owner’s invested and decreased capital 40,075,063 40,075,063 110,464,696 150,539,759
1. Common stock invested by the owners 59,636,398 59,636,398 110,464,696 170,101,094
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) Profit distribution 7,386,369 -21,071,369 -13,685,000 -93,141,013 -106,826,013
1. Withdrawal of surplus reserves 7,386,369 -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 deficit
4. Carryforward retained earnings in variation of
defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Others
(V) Special reserves 7,579,534 7,579,534 1,327,701 8,907,235
1. Amount withdrawn in the current year 76,585,293 76,585,293 5,150,149 81,735,442
2. Amount used in the current year -69,005,759 -69,005,759 -3,822,448 -72,828,207
(VI) Others
IV. Balance at the end of the current year 5,268,353,501 500,000,000 4,882,590,778 59,000,302 10,525,094 1,711,305,045 3,324,778,074 15,756,552,794 3,110,383,001 18,866,935,795
ANNUAL REPORT 2023
2022
Equity attributable to the owners of the parent company
Item Other equity instruments Less: Other Minority equity Total owners’ equity
Paid-in capital (or Special Surplus General risk Undistributed
Preferred Perpetual Capital reserves treasury comprehensive Others Sub-total
share capital) Others reserves reserves preparation profits
stock bond stock income
I. Balance at the end of the last year 5,268,353,501 500,000,000 4,842,515,715 -69,355,058 1,934,676 1,679,258,496 2,767,511,301 14,990,218,631 2,659,834,389 17,650,053,020
Plus: changes in accounting policies
Prior period error correction
Others
II. Beginning balance in current year 5,268,353,501 500,000,000 4,842,515,715 -69,355,058 1,934,676 1,679,258,496 2,767,511,301 14,990,218,631 2,659,834,389 17,650,053,020
III. Increase/decrease in the current year (“-”
94,221,045 1,010,884 24,660,180 58,359,377 178,251,486 294,040,313 472,291,799
for decrease)
(I) Total comprehensive income 94,221,045 371,937,232 466,158,277 253,570,641 719,728,918
(II) Owner’s invested and decreased capital 98,327,900 98,327,900
1. Common stock invested by the owners 98,327,900 98,327,900
2. Capital invested by other equity instrument
500,000,000 500,000,000 500,000,000
holders
3. Amount of share-based payment included
in the owner’s equity
4. Others
5. Capital reduced by other equity instrument
-500,000,000 -500,000,000 -500,000,000
holders
(III) Profit distribution 24,660,180 -313,577,855 -288,917,675 -58,000,000 -346,917,675
1. Withdrawal of surplus reserves 24,660,180 -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 deficit
4. Carryforward retained earnings in variation
of defined benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Others
(V) Special reserves 1,010,884 1,010,884 141,772 1,152,656
1. Amount withdrawn in the current year 50,813,289 50,813,289 2,682,406 53,495,695
2. Amount used in the current year -49,802,405 -49,802,405 -2,540,634 -52,343,039
(VI) Others
IV. Balance at the end of the current year 5,268,353,501 500,000,000 4,842,515,715 24,865,987 2,945,560 1,703,918,676 2,825,870,678 15,168,470,117 2,953,874,702 18,122,344,819
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
Section X Financial Report
Statement of Changes in Owners’ Equity of the Parent Company
January-December 2023
Unit: Yuan Currency: CNY
2023
Other equity instruments Less: Other
Item Paid-in capital Undistributed
Capital reserves treasury comprehensive Special reserves Surplus reserves Total owners’ equity
(or share capital) Preferred Perpetual bond Others profits
stock stock income
I. Balance at the end of the last year 5,268,353,501 500,000,000 4,914,468,683 20,882,527 1,703,410,403 2,745,568,782 15,152,683,896
Plus: changes in accounting policies
Prior period error correction
Others
II. Beginning balance in current year 5,268,353,501 500,000,000 4,914,468,683 20,882,527 1,703,410,403 2,745,568,782 15,152,683,896
III. Increase/decrease in the current year (“-” for decrease) -19,561,335 10,526,809 1,422,294 7,386,369 52,792,325 52,566,462
(I) Total comprehensive income 10,526,809 73,863,694 84,390,503
(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) Profit distribution 7,386,369 -21,071,369 -13,685,000
1. Withdrawal of surplus reserves 7,386,369 -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 deficit
4. Carryforward retained earnings in variation of defined
benefit plan
5. Carryforward retained earnings of other comprehensive
income
6. Others
(V) Special reserves 1,422,294 1,422,294
1. Amount withdrawn in the current year 41,377,208 41,377,208
2. Amount used in the current year -39,954,914 -39,954,914
(VI) Others
IV. Balance at the end of the current year 5,268,353,501 500,000,000 4,894,907,348 31,409,336 1,422,294 1,710,796,772 2,798,361,107 15,205,250,358
ANNUAL REPORT 2023
2022
Other equity instruments Less: Other
Item Paid-in capital Undistributed
Perpetual Capital reserves treasury comprehensive Special reserves Surplus reserves Total owners’ equity
(or share capital) Preferred Others profits
stock bond stock income
I. Balance at the end of the last year 5,268,353,501 500,000,000 4,914,468,683 -8,614,560 1,678,750,223 2,812,544,839 15,165,502,686
Plus: changes in accounting policies
Prior period error correction
Others
II. Beginning balance in current year 5,268,353,501 500,000,000 4,914,468,683 -8,614,560 1,678,750,223 2,812,544,839 15,165,502,686
III. Increase/decrease in the current year (“-” for
29,497,087 24,660,180 -66,976,057 -12,818,790
decrease)
(I) Total comprehensive income 29,497,087 246,601,798 276,098,885
(II) Owner’s invested and decreased capital
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders 500,000,000 500,000,000
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) Profit distribution 24,660,180 -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 deficit
4. Carryforward retained earnings in variation of defined
benefit plan
5. Carryforward retained earnings of other
comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year 29,362,559 29,362,559
2. Amount used in the current year -29,362,559 -29,362,559
(VI) Others
IV. Balance at the end of the current year 5,268,353,501 500,000,000 4,914,468,683 20,882,527 1,703,410,403 2,745,568,782 15,152,683,896
Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:
Section X Financial Report
ANNUAL REPORT 2023
III. Company profile
1. Company profile
√ Applicable Not Applicable
Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to as “the Company”) is a joint-stock company limited
established on September 8, 1997 through restructuring Shanghai Zhenhua Port Machinery Company Limited (hereinafter
referred 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 Company
issued 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 additionally
issued of 88 million common shares (RMB denominated) (A-share) held by the domestic investors in December 2000. The
A-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 additionally
issued 114,280,000 A-shares held by the domestic investors on December 23, 2004. The additionally issued A-shares were
listed 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 additionally
issued 125,515,000 A-shares held by the domestic investors on October 15, 2007. The additionally issued A-shares were
listed 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 placed
169,794,680 A-shares on Sept. 22, 2008 to its controller China Communications Construction Co., Ltd. (hereinafter referred
to as “China Communications Corporation”). A-shares privately placed were the tradable shares with limited trading
conditions. From Mar. 20, 2012 on, the term of trading limitation expired for above-mentioned A-shares which were listed
at 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 of
the Company amounted to 5,268,353,501 shares, par value per share was RMB 1. The share capital totaled up to RMB
5,268,353,501.
On December 18, 2005, China Road and Bridge Construction Group General Company and the Company’s former
controlling shareholder China Harbor Construction (Group) General Company were merged into China Communications
Construction (Group) Co. Ltd after restructuring (hereafter referred to as “CCCG”). In accordance with the Official Reply
to 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 State
Council on Aug. 16, 2006, the reorganization proposal of China Communications Construction (Group) Co., Ltd approved
in the Official Reply to the Issues Concerning Management of State-owned Stock Equity of China Communications
Construction Co., Ltd. (GZCQ [2006] No.1072 Document) on Sept. 30, 2006 and the Official Reply to Approval of China
Communications 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 Offer (ZJGSZ
[2006] No. 227 Document), CCCG solely initiated the incorporation of China Communications Construction Co., Ltd. on
Oct. 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 of
the 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 approved
the Proposal for Transfer of Some Shares of Shanghai Zhenhua Heavy Industries (Group) Co., Ltd by Agreement and
Associated 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 total
shares of this Company, after that, China Communications Construction Co., Ltd. held 16.239% of the stock equity of this
Company. The transfer and registration of shares was accomplished on December 27, 2017. On the date of the transfer
of shares, CCCG directly held 552,686,146 A-shares of this Company (accounting for 12.589% of the total shares of this
Company), 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 Communications
Construction Co., Ltd. (accounting for 16.239% of the total shares of this Company), as a result, it became the controlling
shareholder 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-duty
equipment, engineering machinery, engineering vessel and large-sized metal structural members and their parts and
components; sales of the self-produced products; international shipment by available special transportation vessel and
specialized contracting for steel structure engineering.
The financial statements have been approved by the resolution of the Board of Directors of the Company on March 28,
2024.
IV. Basis of preparation for financial statements
1. Basis of preparation
This financial statements take continuous operation as preparation basic.
2. Basis of preparation
√ Applicable Not Applicable
These financial statements are prepared on the historical cost principle, except for some financial instruments. If the
assets are impaired, corresponding impairment provision should be accrued according to relevant provisions.
V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates tips
√ Applicable Not Applicable
The Group determines the specific accounting policies and accounting estimates based on actual production and
operation characteristics, which are mainly reflected in the inventory valuation methods, income recognition and
measurement 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 Business
Enterprises, and truly and completely reflect the financial position, operating results, changes in shareholders’ equity and
cash flows of the Company.
2. Accounting period
The Company adopts calendar year as the accounting year, which commences on January from the 1, and ends on
December 31 of each year.
3. Operating cycle
Applicable √ Not Applicable
ANNUAL REPORT 2023
4. Functional currency
RMB is the recording currency of the Group and also the currency used in the financial statements. Unless otherwise
specified, the financial statements are presented in RMB.
The subsidiaries, joint ventures and associates under the Group shall, on the basis of the main economic environment
in which they operate, decide their own recording currency, and convert them into RMB when preparing financial
statements.
5. Determination method and selection basis of significance standards
√ Applicable Not Applicable
Item Significance standards
Significant receivables with provision for bad The amount of provision accrued on an individual basis accounts for more than 10% of the total bad
debts accrued on an individual basis debts provision of various receivables and the amount is greater than RMB 40 million
Other significant receivables with provision for The amount of provision accrued on an individual basis accounts for more than 10% of the total bad
bad debts accrued on an individual basis debt provision of various other receivables and the amount is greater than RMB 40 million
Significant recovery and reversal of bad debt The amount of individual recovery or reversal accounts for more than 10% of the total amount of various
provision for receivables receivables and the amount is greater than RMB 40 million
The amount of individual write-off accounts for more than 10% of the total bad debt provision of various
Significant actual write-off receivables
receivables and the amount is greater than RMB 40 million
Significant changes in the book value of The amount of change in the book value of contract assets accounts for more than 30% of the balance
contract assets of contract assets at the beginning of the period
Significant contractual liability with the aging An individual contractual liability with the aging over 1 year accounts for more than 10% of the total
over more than 1 year contract liabilities and the amount is greater than RMB 100 million
Significant changes in the book value of The amount of change in the book value of contractual liability accounts for more than 30% of the
contractual liability balance of contractual liability at the beginning of the period
An individual account payable with the aging over 1 year accounts for more than 10% of the total
Significant accounts payable
accounts payable and the amount is greater than RMB 100 million
An individual other account payable with the aging over than 1 year accounts for more than 10% of the
Other siginificant payables
total accounts payable and the amount is greater than RMB 100 million
Significant construction in progress The budget of a single project is greater than RMB 300 million
Estimated liabilities of a single type account for more than 10% of the total estimated liabilities and the
Significant estimated liabilities
amount is greater than RMB 100 million
The net assets of a subsidiary account for more than 5% of the net assets of the group, or the minority
Major non-wholly-owned subsidiaries interests of a single subsidiary account for more than 1% of the net assets of the group and the amount
is greater than RMB 100 million
The ending balance of a single project accounts for more than 10% of the ending balance of
Significant capitalized R&D projects
development expenditure and the amount is greater than RMB 100 million
Significant outsourced research projects A single project accounts for more than 10% of the total R&D investment
The amount of changes/adjustments accounts for more than 30% of the original contract amount, and
Significant contract changes the amount of impact on the current period’s revenue accounts for more than 1% of the total revenue of
the current period
An individual investment activity accounts for more than 10% of the total cash inflows or outflows
Significant investment activities
received or paid for investment activities And the amount is greater than RMB 300 million
The book value of long-term equity investment in a single investee accounts for more than 5% of the
group’s net assets and the amount is greater than RMB 100 million, or the investment profit and loss
Equity in joint ventures and associates
of long-term equity investment under the equity method accounts for more than 10% of the group’s
consolidated net profit
The net assets of a subsidiary account for more than 5% of the group’s net assets, or the net profit of a
Significant subsidiaries
subsidiary accounts for more than 10% of the group’s consolidated net profit
Activities that do not involve current cash receipts and payments, and have an impact on current
Major activities not involving current cash
statements greater than 10% of net assets, or are expected to have an impact on future cash flows
receipts and payments
greater than 10% of the corresponding total cash inflows or outflows
Section X Financial Report
6. Accounting treatment of business combination under common control and not under common control
√ Applicable Not Applicable
Business combination under common control
The business combination under common control is a business combination in which all of the combining enterprises
are ultimately controlled by the same party or the same parties both before and after the business combination and on
which the control is not temporary.
The assets and liabilities that the combining party obtains in a business combination under common control(including
the goodwill formed by the acquisition of the combined party by the ultimate controlling party), are subject to the
corresponding accounting treatment in accordance with the carrying amount in the financial statements of the ultimate
controlling party on the combination date. The difference between the carrying amount of the net assets obtained
from the combination and the carrying amount of the consideration paid (or total par value of the shares issued) for
the combination is treated as an adjustment to capital premium in the capital reserves and the capital reserves carried
out under the former system. If the capital premium is not sufficient to absorb the difference, the remaining balance is
adjusted against retained earnings.
Business combination not under common control
The business combination not under common control is a business combination in which all of the combining enterprises
are 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 the
seller are measured upon fair value on the purchase day. The balance of the consolidation costs greater than the fair value
of the recognizable net assets of the seller is confirmed as goodwill, and subsequently measured at cost less accumulated
impairment 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 the
consolidation costs is re-examined; the balance between the consolidation costs less than the fair value of recognizable
net assets of the seller after the re-examination is recognized in current profits and losses.
7. Judgment criteria of control and preparation method of consolidated financial statements
√ Applicable Not Applicable
The consolidation scope of the consolidated financial statements is determined based on control and includes the
financial 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 investor
possesses the power over the invested party; the investor is entitled to changeable returns due to participation in related
activities of the invested party; the investor has the ability to influence the amount of return by exercising its power over
the invested party.
If the accounting policies or accounting periods adopted by the subsidiary and the Company are inconsistent, when
preparing the consolidated financial statements, the necessary adjustments shall be made to the subsidiary’s financial
statements based on the accounting policies and accounting periods of the Company. The assets, liabilities, interests,
incomes, expenses and cash flow incurred by transactions among the Group are offset in full upon consolidation.
If the current losses borne by the minority shareholders of the subsidiary exceed the shares held by the minority
shareholders in the initial shareholders’ equity of the subsidiary, the balance still offsets the minority’s equity.
For the subsidiaries acquired in business combination not under common control, the operating results and the cash
flows of the acquiree shall be included in the consolidated financial statements on the date of acquisition of control till
the termination of control. When preparing the consolidated financial statements, the financial statements of subsidiaries
shall be adjusted based on the fair value of various identifiable assets, liabilities and contingent liability confirmed on the
acquisition date.
For the subsidiaries acquired in business combination under common control, the operating results and the cash flows
ANNUAL REPORT 2023
of the combined party shall be included in the consolidated financial statements at the beginning of the combination
period. When preparing the consolidated financial statements, relevant items of the previous financial statements shall
be adjusted and the reporting entity formed after the consolidation is regarded as existed since the ultimate controlling
party 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. Classification 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 are
subject to an insignificant risk of changes in value.
10. Foreign currency transactions and transaction of financial statements denominated in foreign currency
√ Applicable Not Applicable
In the case of a foreign currency transaction, the Group translates the amount of foreign currency into the amount of the
recording currency.
At the time of initial recognition, the amount of foreign currency transaction shall be translated into the amount of the
recording currency at the spot rate of the transaction date (unless exchange rate fluctuations make the use of such
exchange 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 the
transaction date. On the date of balance sheet, the currency exchange rate of the currency denominated items shall be
translated at the spot rate on the date of balance sheet. The transaction difference of settlement and monetary items
arising therefrom, in addition to the difference arising from foreign currency special borrowing relating to the assets of
which the purchase and construction conform to the capitalized conditions, which shall be handled in accordance with
the principle of capitalization of borrowing costs, shall be included in the current profit or loss. The foreign currency
non-currency items calculated on historical cost basis are still translated at exchange rate at the initial recognition not
changing the amount of its recording currency. The foreign currency non-monetary items measured at fair value shall be
translated at the spot rate on fair value determination date, and the difference arising therefrom shall be included in the
current profit 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 financial
statements: for assets/liabilities in the balance sheet, spot exchange rate on the date of balance sheet is used for
translation. As for the items under the shareholders’ equity, except for those under “undistributed profits”, other items
are translated using the spot exchange rate at the time of occurrence; the income and expense items in the income
statement shall be translated at the spot exchange rate of the transaction. The conversion difference of foreign currency
statements arising from above translation shall be recognized as other comprehensive income. When disposing overseas
operations, other comprehensive income related to the overseas operation shall be transferred into the current profits
and losses, partial disposal shall be calculated according to the proportion of disposal.
Foreign currency cash flows shall be translated at the spot exchange rate on the day of occurrence of the cash flow. Cash
flows from foreign subsidiaries are translated at the average exchange rate for the period in which the cash flows occur
(unless exchange rate fluctuations make translation at that rate inappropriate, in which case the exchange rate is the spot
rate on the day of occurrence of the cash flow). Effect of changes in exchange rate on cash amount is shown separately in
the cash flow statements as an adjustment item.
Section X Financial Report
11. Financial instruments
√ Applicable Not Applicable
Financial instrument is the contract that forms the financial assets of an enterprise and the financial liabilities or equity
instruments of the other entities.
Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability when becoming a party to a financial instrument contract.
Once the following conditions are satisfied, the Group will de-recognize financial assets (or part of financial assets or of a
portfolio of similar financial assets), i.e., writing off from its account and balance sheet:
(1) The right to receive cash flows from financial assets expires;
(2) The right to receive the cash flow from financial asset has been transferred, or have assumed the obligation in the
“pass-through agreement” to pay the collected cash flow timely to the third party in full; and has transferred substantially
almost all the risks and rewards of ownership of the financial asset, or although does not transfer or retain substantially
nearly all of the risks and rewards of ownership of the financial asset, but has given up the control over the financial asset.
In the event that the liability of a financial liability has been fulfilled, cancelled or expired, the financial liabilities shall be
de-recognized. If the existing financial liability is replaced by the same creditor with another financial liabilities of virtually
entirely different terms, or the terms of the existing liabilities are almost entirely modified substantially, such substitutions
or modifications will be handled as the derecognition of the original liability and the recognition of new liabilities, and
the difference will be included in current profit or loss.
In case of trading financial assets in the conventional way, such financial assets will be recognized and de-recognized
on the trading day. Trading financial assets in the conventional way refers to purchasing or selling financial assets in
accordance with the terms and conditions of the contract, and delivering financial assets within the time limit prescribed
in the law or the prevailing practice in accordance with the terms and conditions of the contract. Trading day is the date
on which the Group commits to buy or sell financial assets.
Classification and measurement of financial assets
At the initial recognition, the Group’s financial assets, based on the Group’s management model of financial assets and
the contract cash flow characteristics of financial assets, are classified as financial assets measured at amortized cost,
financial assets measured at fair value through the other comprehensive income and financial assets measured at fair
value through the current profit or loss.
Financial assets are measured at fair value at initial recognition, while the accounts receivable or notes receivable arising
from sales of goods or rendering of services, excluding the significant financing composition or the financial composition
for 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 directly
included in the current profit or loss, while the transaction costs relevant to other financial assets are included in the initial
recognition amount.
The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured at amortized cost
Financial assets simultaneously meet the following conditions are classified as the financial assets measured at amortized cost:
the management model of such financial assets aims at the collection of contract cash flows; according to the terms in the
contract for such financial assets, the cash flows generating on the special date are paid at the interest for the principal and the
unpaid principal. Such financial assets are recognized as interest income by the effective rate method, and the gains or losses
from the derecognition, modification or impairment thereof are included in the current profit or loss.
Investment in debt instruments measured at fair value through other comprehensive income
If financial assets meet the following conditions at the same time, the Group classifies them as financial assets at fair value
through other comprehensive income: the Group’s business model for the management of the financial assets is aimed
ANNUAL REPORT 2023
at both the collection of contract cash flow and the sale of the financial assets; the contractual terms of the financial asset
stipulate that the cash flow generated at a particular date is only the payment of the principal and interest based on the
outstanding principal amount. The interest income of such financial assets is recognized by the effective interest method.
At derecognition of financial assets, the accumulated gains or losses previously included in other comprehensive income
are transferred from the other comprehensive income to the current profit or loss.
Investment in equity instruments measured at fair value through the other comprehensive income
The Group irrevocably chooses to designate some non-trading equity instruments as the financial assets measured at
fair value through the other comprehensive income, and only include the relevant dividends revenue (except for that
partially recovered as the investment cost) in the current profit or loss, and the subsequent changes in fair values in the
other comprehensive income, without the provision for impairment. At derecognition of financial assets, the accumulated
gains or losses previously included in other comprehensive income are transferred from the other comprehensive income
to the retained earnings.
Financial assets measured at fair value through the current profit or loss
The financial assets other than the financial assets measured at amortized cost and the financial assets measured at fair
value through the other comprehensive income are classified as the financial assets measured at fair value through the
other comprehensive income. For such financial assets, the subsequent measurement is made at fair value, and changes
in fair value are included in the current profit or loss.
Classification and measurement of financial liabilities
At the initial recognition, the Group’s financial liabilities are classified as: financial liabilities measured at fair value through
the current profit or loss and financial liabilities measured at amortized cost. For financial liabilities measured at fair value
through the current profit or loss, relevant transaction costs are directly included in the current profit or loss, while the
transaction costs relevant to financial liabilities measured at amortized cost are included in the initial recognition amount.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities measured at fair value through the current profit or loss
Financial liabilities measured at fair value through the current profit or loss include the trading financial liabilities (including
the derivative instruments belonging to financial liabilities), and the financial liabilities measured at fair value through the
current profit or loss. The subsequent measurement of the trading financial liabilities (including the derivative instruments
belonging to financial liabilities) is made at fair value, and changes in fair value are included in the current profit or loss.
For the financial liabilities measured at fair value through the current profit or loss, the subsequent measurement is
made at fair value, and the changes in fair value are included in the current profit or loss except that the changes in fair
value caused by the changes in the Group's credit risks are included in the other comprehensive income; if including the
changes in fair value caused by the changes in the Group's credit risks in the other comprehensive income may cause
or exacerbate the accounting mismatch in profit or loss, the Group will include all changes in fair value (including the
amounts affected by the changes in the Group’s credit risks) in the current profit or loss.
Financial liabilities measured at amortized cost
The subsequent measurement of such financial liabilities is made at amortized cost by the effective rate method.
Impairment of financial instruments
Based on the expected credit losses, the Group makes the provision for impairment and recognizes the loss provisions for
the financial assets measured amortized cost and the investment in debt instruments measured at fair value through the
other comprehensive income.
For the receivables excluding significant financing component, the Group measures the loss provision based on the
amount equivalent to the expected credit loss over the whole duration by the simplified 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 financial assets has had significant increase after the initial
recognition. If the credit risk does not significantly increase after the initial recognition, standing at the first level, the
Group will measure the loss provision based on the amount of expected credit loss over the next 12 months , and
Section X Financial Report
calculate the interest income based on the book balance at the effective interest rate; if the credit risk has significantly
increased after the initial recognition without any credit impairment, standing at the second level, the Group will measure
the loss provision based on the amount equivalent to the expected credit loss over the whole duration; in case of any
credit impairment after the initial recognition, standing at the third level, the Group will measure the loss provision based
on the amount of expected credit loss over the whole duration, and calculate the interest income based on the amortized
cost at the effective interest rate. For financial instruments only with relatively low credit risk on the balance sheet date,
the Group assumes that such credit risk does not significantly increase after the initial recognition.
The Group evaluates the expected credit loss of financial instruments individually and by portfolio. After taking the credit
risk characteristics of different customers into account, based on common risk characteristics, the Group evaluated the
expected credit loss on accounts receivable and contract assets by the aging portfolio. The Group determined the aging
of accounts receivable based on the date on which the accounts receivable were recorded. Except for the aforementioned
financial instruments for which expected credit losses were assessed by portfolio, the Group assessed their expected
credit losses individually. The Group recognized accounts receivable and contract assets of customers who encountered
financial difficulties or have contract disputes as assets for provision accrued on an individual basis. The basis for making
provisions by portfolio was to classify customers with similar credit risk characteristics into the same portfolio based on
the nature of the customers.
For the Group’s disclosure of the judgment standards for significant increase of credit risk and definition of assets with
credit impairment, see Note V for details.
The factors reflected in the Group’s approach to measuring expected credit losses on financial instruments include the
unbiased probability weighted average amount determined by evaluating a range of possible outcomes, the time value
of money, and reasonable and substantiated information about past events, current conditions and projections of future
economic conditions that is available at the balance sheet date without undue additional cost or effort.
When the Group ceases to expect reasonably the contract cash flows of financial assets which can be recovered in whole
or in part, the Group will directly write off the book balance of such financial assets.
Financial instrument offset
Financial assets and financial liabilities are presented in the balance sheet at the net amount after mutual offset when the
following conditions are met simultaneously: possess the legal right to offset the recognized amount and such right is
currently executable; intend to settle at net amount, or cash such financial assets or liquidate such financial liabilities.
Transfer of financial assets
If the Group has transferred nearly all the risks and rewards associated with the ownership of financial assets to the
transferee, such financial assets will be de-recognized; if the Group retains nearly all the risks and rewards associated with
the ownership of financial assets, such financial assets will be continuously recognized.
If the Group neither transfers nor retains nearly all the risks and rewards associated with the ownership of the financial
assets, the following treatments will be adopted based on different circumstances: if the Group has given up its control
over the financial assets, the financial assets will be derecognized, and the assets and liabilities arising therefrom will
be recognized; if the Group does not give up its control over the financial assets, the financial assets will be recognized
to the extent of its continuing involvement in the transferred financial assets, while relevant liabilities are recognized
accordingly.
12. Notes receivable
Applicable √ Not Applicable
13. Accounts receivable
Applicable √ Not Applicable
14. Receivables financing
Applicable √ Not Applicable
ANNUAL REPORT 2023
15. Other receivables
Applicable √ Not Applicable
16. Inventories
√ Applicable Not Applicable
Inventory categories, delivery pricing methods, inventory management systems, and amortization methods for low-value
consumables and packaging materials
√ Applicable Not Applicable
Inventories 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 other
cost. The actual cost of raw materials in transit is determined by the weighted average method. The actual cost of finished
products in transit is determined by the weighted average method and individual valuation method.
Perpetual inventory system is adopted for inventories.
Contract performance cost classified as current assets is detailed in inventories.
Method of recognizing and accruing provision for inventory depreciation
√ Applicable Not Applicable
On the balance sheet date, the inventory is measured at its cost or its net realizable value, whichever is lower; if the cost
is higher than the net realizable value, the provision for inventory depreciation will be made and included in the current
profit or loss. The net realizable value, in the routine activities, refers to amount of the estimated selling price of inventory
minus the estimated cost to completion, estimated selling expense and relevant taxes and surcharges. At the time of
making the provision for inventory depreciation, the provision for depreciation of raw materials is made by category, and
that 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 the
portfolio, and the determination basis for the net realizable value of different categories of inventory
Applicable √ Not Applicable
The calculation method and determination basis of the net realizable value of inventory based on inventory aging
Applicable √ Not Applicable
17. Contract assets
√ Applicable Not Applicable
Recognition method and criteria of contract assets
√ Applicable Not Applicable
The Group presents contract assets or liabilities in the balance sheet according to the relationship between the fulfillment
of performance obligations and customer payments. After offsetting the contract assets and contract liabilities under the
same contract, the Group presents them in net amount.
Contract assets
Contract assets refer to the right to receive consideration for goods or services transferred to customers, and the right
depends 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 Report
Portfolio categories and determination basis for provisions for bad debts based on credit risk characteristics
Applicable √ Not Applicable
Aging calculation method based on aging recognition of credit risk characteristics portfolio
Applicable √ Not Applicable
Judgment criteria for determination of provision accrued on an individual basis based on the provision for bad debts
accrued on an individual basis
Applicable √ Not Applicable
18. Held-for-sale non-current assets or disposal groups
Applicable √ Not Applicable
Recognition criteria and accounting treatment methods for held-for-sale non-current assets or disposal groups
Applicable √ Not Applicable
Recognition criteria and presentation methods for discontinuing operation
Applicable √ Not Applicable
19. Long-term equity investments
√ Applicable Not Applicable
Long-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 book
value of owners’ equity acquired from the combinee on the combination date in the consolidated financial statements
of the ultimate controller; the difference between the initial investment cost and the book value of the combination
consideration is used to adjust the capital reserves (if the capital reserves are insufficient to offset, the retained earnings
will be offset).
The initial investment cost of a long-term equity investment acquired through business combination not under common
control is recognized at the combination cost (if the business combination not under common control is realized
through several transactions by step, the sum of the book value of the equity investment of the acquiree held before the
acquisition date and the cost of investment newly added on the acquisition date is recognized as the initial investment
cost). For long-term equity investments acquired not through business combination, their initial investment costs are
determined by the following ways: if the long-term equity investment is acquired through cash payment, the initial
investment 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 issuing
equity 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 individual
financial statements of the Company under the cost method. Control means the power owned over the investee and
enjoys the variable return through participating in activities related to the investee, and has the ability to affect its return
by using the power over the investee.
Under the cost method, long-term equity investments are valuated at initial investment cost. The Company shall increase
or recover the investment to adjust the cost of long-term equity investments. Cash dividends or profits declared and
distributed by the investee should be recognized as investment income in the current period.
If the Group has joint control over or significant influence on the investees, long-term equity investments are accounted
for with the equity method. Joint control refers to the control shared over an arrangement in accordance with the relevant
stipulations, and the decision-making of related activities of the arrangement should not be made before the party
sharing the control right agrees the same. Significant influence refers to the power to participate in making decisions on
the financial and operating policies of the investee, but not the power to control, or jointly control, the formulation of
ANNUAL REPORT 2023
such policies with other parties.
For long-term equity investments measured under the equity method, if the initial investment costs are higher than the
investor's attributable share of the fair value of the investee's identifiable net assets, the initial costs of the long-term
equity investments shall be recognized; if the initial investment costs are lower than the investor's attributable share of
the fair value of the investee's identifiable net assets, the difference shall be recognized in current profit and loss and at
the 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 the
shares of net profit and loss and other comprehensive income realized by the investee which the Company shall enjoy or
bear, recognize the profit and loss on the investments and other comprehensive income and adjust the book value of the
long-term equity investments. When recognizing the share of net profit or loss of the investee that the Group shall enjoy,
based on fair value of various identifiable assets and others of the investee on acquisition and according to accounting
policies and accounting periods of the Group, the Group shall write off the part of incomes from internal transactions with
associates and joint ventures which are attributable to the investor according to the shareholding ratio (but the loss from
internal transactions is the asset impairment loss, its total amount shall be recognized) and then recognize the profit and
loss on investments on such basis, except those assets investments or sale constitute business. The Group shall, in the
light of the profits or cash dividends that the investee declares to distribute, calculate the part it should share and reduce
the book value of the long-term equity investment correspondingly. Recognition of the net loss in the investee shall be
within the limit that the book value of long-term equity investments and other long-term interests which substantially
form the net investment in the investee are reduced to zero, unless the Group is obliged to bear extraneous losses; For
other changes in shareholder's equity of the investee excluding net losses or profits, other comprehensive income or
profit 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 method
Investment 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, if
the economic benefits associated are likely to flow in and its cost can be measured reliably, should be recorded in the
cost of investment property. Otherwise, such subsequent expenses should be included in current profits or losses upon
occurrence.
The subsequent measurement of an investment property shall be conducted by the Group under the cost method, and
the land use right and buildings shall be amortized and depreciated according to the expected useful life and net residual
rate 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 lives Estimatednet residual value rate Annual depreciation (amortization) rate
Buildings 30 years 0% 3.3%
Determined according to the estimated net residual value
Land use right Land useful lives 0%
and useful life for the land useful lives
The Group shall review estimated useful lives, estimated net residual value and depreciation (amortization) methods of
the 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 fixed
assets or intangible assets. When the self-use property is changed to earn rentals or for capital appreciation, upon change,
fixed assets or intangible assets shall be converted into investment properties. When there is a conversion, the book value
before the conversion shall be regarded as the book value after the conversion.
Section X Financial Report
21. Fixed assets
(1). Recognition criteria
√ Applicable Not Applicable
Fixed assets will only be recognized when the economic benefits relating to the fixed assets may flow into the Group and
the costs of the fixed assets can be measured reliably. If the subsequent disbursements relevant to a fixed asset meet the
recognition conditions, they shall be recorded in the cost of fixed asset, and the book value of the replaced part shall be
derecognized; otherwise, they shall be recorded in the current profits and losses.
Fixed assets are initially measured at cost. The costs of externally acquired fixed 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 Applicable
Category Depreciation method Useful lives (year) Residual value rate Annual depreciation rate
Buildings and constructions Straight-line method 20-40 years 0% 2.5%-5%
Mechanical equipment Straight-line method 3-20 years 0% 5%-33.3%
Office and electronic equipment Straight-line method 3-5 years 0% 20%-33.3%
Transportation facilities (excluding ship) Straight-line method 5 years 0% 20%
Ship Straight-line method 10-30 years 5%/10% 3%-9.5%
The Group shall review useful lives, estimated net residual value and depreciation methods of the fixed assets at the end
of each year and shall make adjustment when necessary.
22. Construction in progress
√ Applicable Not Applicable
The Group recognizes the cost of the construction in progress at the actually incurred expenditures, including all types
of necessary expenditures incurred during the construction period, the capitalized borrowing costs incurred prior to the
time when the construction is brought to the expected conditions for use and other relevant costs.
The construction in progress is converted into fixed assets after it reaches the expected conditions for use.
Standard for carrying forward fixed assets
Houses and buildings have passed the preliminary acceptance and reached the expected usable state, or they
Buildings and constructions
are actually put into use, whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning,
Mechanical equipment
whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning,
Office and electronic equipment
whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning,
Transportation facilities (excluding ship)
whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning,
Ship
whichever is earlier
23. Borrowing costs
√ Applicable Not Applicable
The borrowing costs that can directly attributable to the acquisition and construction or production of assets complying
with the capitalization conditions, shall be capitalized and other borrowing costs shall be included into current profit and
loss.
When capital expenditure and borrowing costs have incurred and acquisition and construction or production activities
necessary for the assets to reach the intended use or sale has begun, the Company will capitalize borrowing costs.
ANNUAL REPORT 2023
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale. The borrowing costs incurred thereafter
shall be included in the current profit or loss.
During the period of capitalization, the capitalized amount on interest of each accounting period shall be determined
in accordance with the following provisions: The interest of special borrowings to be capitalized should be determined
according to the actually incurred interest expenses in the current period less the interest income on deposits or the
investment income; the interest of general borrowings to be capitalized should be calculated by multiplying the weighted
average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the
weighted average rate of used general borrowings.
If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupted
due to the matters other than necessary procedures for such assets to reach the working conditions for its intended
use or sale and such circumstance lasts for more than three months, the capitalization of borrowing costs should be
suspended. Borrowing costs incurred during the interruption are recognized as the current profit or loss and continue to
be 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 Applicable
The useful life of intangible assets is as follows at the straight-line method over its useful life.
Useful life Judgment basis
Land use right Land useful lives The period of land use rights
Software use fees 5 years Service life of software
Proprietary technology 10 years The expected service life in combination with the product lifecycle
(2). Allocation scope and related accounting method for R&D expenditure
√ Applicable Not Applicable
The Group’s expenditures for its internal research and development projects are classified into research expenditures
and development expenditures. The expenditures in research phase will be included in the current profit or loss on
occurrence. The development expenditures will be capitalized only when all of the following conditions are satisfied
simultaneously: It is feasible technically to finish intangible assets for use or sale; It is intended to finish and use or sell
the intangible assets; The usefulness of methods for intangible assets to generate economic benefits shall be proved,
including being able to prove that there is a potential market for the products manufactured by applying the intangible
assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; It is
able to finish the development of the intangible assets, and able to use or sell the intangible assets, with the support
of sufficient technologies, financial resources and other resources; and the expenditures attributable to the intangible
asset during its development phase can be measured reliably. Development expenditures that do not meet the above
conditions are included in the current profit or loss on occurrence.
27. Long-term asset impairment
√ Applicable Not Applicable
The 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 the
balance sheet date, make a judgment on whether there is any indication that the assets may impair. If such indication
does exist, the Group shall estimate the recoverable amount and carry out an impairment test. Impairment tests for
goodwill caused by business combination, intangible assets with indefinite useful lives, and intangible assets not reaching
usable 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 future
cash flows expected to be derived from the assets. The Group shall, on the basis of single item assets, estimate the
recoverable amount. Where it is difficult to do so, it shall determine the recoverable amount of the group assets on the
basis of the asset group to which the asset belongs. The recognition of an asset group shall base on whether the main
cash inflow 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 or
asset group shall be written down to their recoverable amounts. The write-downs are recorded into the current profit or
loss 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 value
of the goodwill to the relevant asset groups or combination of asset groups by a reasonable method. The related asset
group or combination of asset groups shall be the asset group or combination of asset groups that can benefit from the
synergy effect 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 value
and recoverable amount, and if the recoverable amount is less than carrying value, the amount impairment loss is first
allocated to offset the carrying value of the goodwill in the asset group or the combination of asset groups, and then will
be used to offset the carrying value of other assets pro rata in accordance with the proportion of the carrying value of
other 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 in
subsequent period.
28. Long-term deferred expenses
√ Applicable Not Applicable
Long-term deferred expenses shall be amortized at the straight-line method, and the amortization period is set out as
follows:
Amortization period
Improvement of fixed assets acquired under the operating lease Expected beneficial period
29. Contract liabilities
√ Applicable Not Applicable
The Group presents contract assets or liabilities in the balance sheet according to the relationship between the
performance of contract obligations and customer payments. After offsetting the contract assets and contract liabilities
under 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 liabilities
Contract liability refers to the obligation to transfer goods or services to customers for the consideration received or
receivable 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 REPORT 2023
for the services provided by its staff or for employment termination. Employee remuneration includes short-term
remuneration, welfare after demission, dismissal welfare and other long-term welfare.
(1). Accounting treatment of short-term compensation
√ Applicable Not Applicable
During the accounting period of an employee' providing services, the short-term compensation actually incurred is
recognized as liabilities and includes them in the current profit or loss or the related asset costs.
(2). Accounting treatment of post-employment benefits
√ Applicable Not Applicable
The employees of the Group participated in the endowment insurance and unemployment insurance managed by the
local government, and also participated in the enterprise annuity, and the corresponding expenses were included in the
relevant asset costs or the current profit or loss when incurred.
(3). Accounting treatment of termination benefits
Applicable √ Not Applicable
(4). Accounting treatment of other long-term employee benefits
Applicable √ Not Applicable
31. Estimated liabilities
√ Applicable Not Applicable
Except for contingent consideration and contingent liabilities assumed in business combination not under the same
control, when the obligations related to contingencies meet the following conditions, the Group recognizes them as
estimated liabilities: this obligation is a present obligation of the Group; the performance of such obligation is likely to
result in outflow of economic benefits 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 relevant
present obligations by considering comprehensively the risks with respect to contingencies, uncertainties and the time
value of money. The book value of estimated liabilities will be checked and properly adjusted on balance sheet date so as
to reflect the current best estimate.
32. Share-based payment
Applicable √ Not Applicable
33. Preferred shares, perpetual bonds and other financial instruments
√ Applicable Not Applicable
After the maturity of the perpetual bonds issued by the Group, the Group has the right to extend them for an unlimited
number of times. For the coupon interest of the perpetual bonds, the Group has the right to postpone the payment, and
the group has no contractual obligation to pay cash or other financial assets. They are classified as equity instrument.
34. Revenue
(1). Accounting policies for revenue recognition and measurement disclosed by business type
√ Applicable Not Applicable
The Group recognizes revenue when it fulfills the performance obligation in the contract, that is, when the customer
obtains control over the relevant goods or services. The acquisition of control of relevant goods or services means to be
able to dominate the use of the goods or the rendering of the services and obtain almost all the economic benefits from
them.
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 the
Group and customers usually only include the performance obligations of transferring large-sized port machinery and
equipment, 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 the
performance of the contract are irreplaceable, however, most of the large-sized port equipment, heavy equipment sales
contracts and the manufacturing contracts of some steel structure products do not stipulate that the Group has the right
to collect money for the performance part that has been completed so far in the whole contract period. This part of the
contract does not meet the performance obligation conditions within a certain period of time, and the Group takes it as
the performance obligation at a certain point of time. The Group generally recognizes the revenue at the time point of
control transfer of relevant port machinery and equipment, heavy equipment and steel structure products on the basis of
comprehensive consideration of the following factors: the current right to receive payment of goods, the transfer of main
risks and rewards in the ownership of goods, the transfer of legal ownership of goods, the transfer of physical assets of
goods, 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 the
manufacturing contracts on some steel structure products, the Group has the right to collect money for the performance
part that has been completed so far during the whole contract period. The Group takes it as the performance obligation
to perform in a certain period of time, and recognizes the revenue according to the performance progress, except the
cases where the performance progress cannot be reasonably determined. Based on input method, the Group determines
the corresponding performance progress of large-sized port equipment and heavy equipment contracts according
to the proportion of the cost incurred in the total estimated cost. Based on output method, the Group determines the
performance progress of the steel structure manufacturing contract according to the proportion of the accumulated
processing tons to the estimated total processing tons. Where the performance progress cannot be reasonably
determined, and the cost incurred by the Group is expected to be reimbursed, the revenue shall be recognized according
to the amount of the cost that has incurred until the performance progress can be reasonably determined.
Contracts on rendering of shipping and lifting services
The 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 progress
of performance obligations is determined according to the proportion of the number of days transported in the total
estimated days of transportation. The revenue of shipping service shall be recognized when the service is completed.
Material sales contract
The material sales contract between the Group and customers usually only includes the performance obligation of
transferring spare parts and other materials. The Group generally recognizes the revenue at the time of control transfer of
relevant spare parts and other materials on the basis of comprehensive consideration of the following factors: the current
right to receive payment of goods, the transfer of main risks and rewards in the ownership of goods, the transfer of legal
ownership of goods, the transfer of physical assets of goods, and the acceptance of the goods by customers.
Rendering of building services
The building service contract between the Group and customers usually includes the performance obligation of
infrastructure construction. As the customer can control the assets under construction during the performance by the
Group, the Group takes them as the performance obligations within a certain period of time, and recognizes the revenue
according to the performance progress, except that the performance progress cannot be reasonably determined. By input
method, the Group determines the performance progress of the services based on the cost incurred. If the performance
progress cannot be reasonably determined and the cost incurred by the Group is expected to be compensated, the
revenue shall be recognized according to the cost amount incurred until the performance progress can be reasonably
determined.
Build and transfer contract (BT contract)
Activities under the BT contracts usually include build and transfer. With respect to the building services provided by
the Group, during the building period, the revenue of construction service contracts is recognized in accordance with
ANNUAL REPORT 2023
the above accounting policies. The construction contract revenue is measured at the fair value of the consideration
receivable, and the “long-term receivables” are recognized and measured at the same time by effective interest rate
method and the amortized cost, and offset upon receipt of payment of the project owner.
PPP project contract
PPP project contract refers to the contract concluded between the Group and the government party on PPP project
cooperation in accordance with laws and regulations, which also meets the following characteristics (hereinafter referred
to 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, the
Group determines whether the Group is the principal responsible person or the agent in accordance with the accounting
policy of the principal responsible person/agent below. If the Group is the principal responsible person, contract revenue
from construction services and contract assets are recognized accordingly, and the revenue of construction contract is
measured at the fair value of the consideration received or receivable. During the operating phase, the Group carries out
accounting 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 financial assets) of a definite amount can be met, the amount of consideration of relevant PPP project
assets or the recognized amount of construction revenue is recognized as contract assets until the Group has the right to
receive the consideration (which depends only on the passage of time). When the Company has the right to collect such
consideration (which depends only on the passage of time), the amount of consideration of relevant PPP project assets
or the recognized amount of construction revenue is recognized as accounts receivable, and subject to the accounting
treatment specified in the accounting policy for financial instruments. When the PPP project assets reach their expected
usable conditions, the difference of the amount of consideration of relevant PPP project assets or the recognized amount
of construction revenue in excess of the cash (or other financial assets) of a definite amount is recognized as intangible
assets.
(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 payment
amount is uncertain. When the PPP project assets reach their expected usable conditions, the amount of consideration
of relevant PPP project assets or recognized amount of construction revenue is recognized as an intangible asset and
subject to the accounting treatment specified in the accounting policy for intangible assets above.
In the operation stage, when services are provided, recognize the corresponding revenue; Daily maintenance or repair
expenses incurred shall be recognized as current expenses. Daily maintenance or repair expenses incurred shall be
recognized as current expenses.
The Group presents the construction expenditures incurred during the construction period of PPP projects accounted
as intangible assets as cash flows from investing activities. The Group presents the construction expenditures incurred
during the construction period of PPP projects other than those mentioned above as cash flows from operating activities.
Variable consideration
If there is variable consideration in the contract, the Group shall determine the best estimate of variable consideration
according to the expected value or the most likely amount, but the transaction price including variable consideration
shall not exceed the amount that the accumulated recognized revenue is highly unlikely to have a significant reversal
when the relevant uncertainty is eliminated. On each balance sheet date, the Group re-estimates the amount of variable
consideration to be included in the transaction price.
Consideration payable to customers
In the case of consideration payable to customers, the Group shall use such consideration payable to offset the
transaction price and then offset the current income at the later of the recognition of the relevant income and the
Section X Financial Report
payment (or commitment to pay) of the customer consideration, unless the consideration payable to customers is for the
purpose of obtaining other clearly distinguishable goods or services from the customer.
Warranty obligations
According to the contract and legal provisions, the Group provides quality assurance for the goods sold or the assets
built. For the guarantee type quality assurance that the goods sold to customers meet the established standards, the
Group shall perform accounting treatment in accordance with Note V. For the service quality assurance for a separate
service provided in addition to guaranteeing that the goods sold meet the established standards, the Group shall take
it as a single performance obligation, allocate part of the transaction price to the service quality assurance according to
relative proportion of the single selling price of the goods and service quality assurance, and recognize the revenue when
the customer acquires service control right. In assessing whether quality assurance provides a separate service in addition
to ensuring that the goods sold meet established standards, the Group shall consider whether the quality assurance is
legal requirement, quality assurance period and the nature of the Group’s commitment to perform the tasks.
Principal responsible person/agent
The Group determines whether it is the principal responsible person or the agent in the transaction according to whether
it has the right to control the goods or services before transferring them to customers. In case the Group can control the
goods and other products before transferring them to customers, the Group shall be the principal responsible person
and recognize the revenue according to the total consideration received or receivable. Otherwise, the Group shall be the
agent and recognize the revenue according to the amount of commission fees or handling charges that it is expected
to be entitled to receive, and the amount shall be recognized according to the net amount of the total consideration
received or receivable after deducting the price payable to other relevant parties, or according to the fixed commission
amount or proportion.
(2). Different operating models for similar businesses involve different revenue recognition methods and measurement
methods
Applicable √ Not Applicable
35. Contract cost
√ Applicable Not Applicable
The Group’s assets related to contract cost include contract performance cost and contract acquisition cost. According to
the 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 an
asset 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 of
inventories, fixed assets or intangible assets and meets the following conditions simultaneously, shall be recognized as an
asset 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 the
contract;
(2) The cost increases the enterprise’s resources for fulfilling 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 the
assets, and are included in the current profit or loss.
If the book value of the assets related to contract cost is higher than the difference between the following two items, the
Group 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 REPORT 2023
(2) The cost expected to be incurred for the transfer of relevant goods or services.
36. Government subsidies
√ Applicable Not Applicable
Government subsidies shall be recognized only if the Company is able to comply with the conditions for the government
subsidies, and is likely to receive the government subsidies. If a government subsidy is a monetary asset, it shall be
measured at the amount received or receivable. If a government subsidy is a non-monetary asset, it shall be measured at
its 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 as
required by the government documents, they are the assets-related government subsidies; if government documents
have no relevant provisions, and such government subsidies are based on the condition of the construction or the
generation in otherwise of the long-term assets judged on the basis of basic conditions required for obtaining such
government subsidies, they shall be deemed as the assets-related government subsidies, other government subsidies in
addition 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 periods
will be recognized as deferred income, and will be included in the current profit or loss or be used to write off relevant
costs 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 profit or loss by stages
by a reasonable and systematic method within the useful lives of relevant assets. (However, the government subsidies
measured at nominal amounts are directly included in the current profit 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 is
transferred to the profit or loss from the current period of asset disposal.
37. Deferred income tax assets/deferred income tax liabilities
√ Applicable Not Applicable
Deferred income tax is accrued under the balance sheet liability method by the Group based on the temporary difference
between book value of assets and liabilities on the balance sheet date and tax base, as well as the balance between the
book value of items which have not been recognized as assets or liabilities but the tax base can be determined according
to the tax law and the tax base.
Taxable temporary differences are recognized as deferred income tax liabilities, except that
(1) The taxable temporary differences 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 not
a business combination and will not affect accouting profits, nor affect the taxable income or deductible losses when
the transaction occurs, and initial recognition of assets and liabilities does not lead to the generation of equal taxable
temporary differences and deductible temporary differences.
(2) For taxable temporary differences related to the investments in subsidiaries, joint ventures and associates, the time for
the reversal of the taxable temporary differences can be controlled and the taxable temporary differences are likely not to
be reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax credits that can be carried forward to subsequent
periods, deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probable
to be available against the deductible temporary differences, deductible losses and tax credits, unless the deductible
temporary differences arise from the following transactions:
The deductible temporary difference is generated in the following transaction: the transaction is not a business
combination and will not affect accouting profits, nor affect the taxable income or deductible losses when the transaction
occurs, and initial recognition of assets and liabilities does not lead to the generation of equal taxable temporary
differences and deductible temporary differences.
Section X Financial Report
For the deductible temporary differences arising from investments in subsidiaries, associates and joint ventures, the
temporary differences may be reversed in the foreseeable future and they can be used to offset the taxable income of
deductible temporary differences in the future.
On the balance sheet date, the Company shall measure deferred income tax assets and deferred income tax liabilities at
the applicable tax rate during the period for expected recovery of assets or settlement of liabilities and reflect the impacts
of 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 obtain
sufficient taxable income to offset the benefit 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 tax
assets, and deferred income tax assets are recognized to the extent that it is likely to obtain sufficient taxable income for
all 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 be
presented by net amount after offset: when the Company has the statutory right to balance current income tax assets
and current income tax liabilities with net amounts, and deferred income tax assets and deferred income tax liabilities are
related to the income tax which are imposed on the same taxpayer by the same tax collection authority or on different
taxpayers, but, in each important future period in connection with the reversal of deferred income tax assets and
liabilities, the involved taxpayer intends to settle the current income tax assets and liabilities on a net amount basis, or
obtain assets at the time of discharging liabilities.
38. Lease
√ Applicable Not Applicable
Judgment basis and accounting treatment method for simplified treatment of short-term leases and low-value asset
leases as a lessee
√ Applicable Not Applicable
On the beginning date of the contract, the Group assesses whether the contract is a lease or contains a lease, if one
party transfers the right to control the use of one or more identified assets for a certain period of time in exchange for
consideration, such contract is, or contains, a lease.
As the lessee
Except for short-term leases and low-value asset leases, the Group recognizes right-of-use assets and lease liabilities for
leases.
Right-of-use assets
At the commencement date of the lease term, the Group recognizes its right to use the leased asset over the lease term as
a right-of-use asset, which is initially measured at cost. The right-of-use assets include: the initial measurement amount of
the lease liability, the lease payments made on or before the commencement date of the lease term, lessing the amount
related to the lease incentive already taken; initial direct costs incurred by the lessee; the costs expected to be incurred
by the lessee to disassemble and remove the leased asset, restore the site where the leased asset is located, or restore
the leased asset to the condition agreed in the lease terms. If the Group remeasures the lease liability due to changes in
lease payments, the book value of the right-of-use asset is adjusted accordingly. The Group subsequently depreciates
right-of-use assets under straight-line method. If it can be reasonably certain that the ownership of the leased asset will
be obtained at the expiration of the lease term, the leased asset will be depreciated over the remaining useful life. If it
is impossible to reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease
term, the leased asset will be depreciated over the shorter of the lease term and the remaining useful life.
Lease liabilities
At the commencement date of the lease term, the Group recognizes the present value of the outstanding lease payments
as a lease liability, except for short-term leases and low-value asset lease. Lease payments include fixed payments and
substantially fixed payments net of lease incentives, variable lease payments that depend on an index or rate, amounts
ANNUAL REPORT 2023
expected to be payable based on the residual value of guarantee, and also include the exercise price of the purchase
option or amounts to be paid upon exercise of a lease termination option if the Group is reasonably certain that the
option will be exercised or the lease term reflects 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 the
discount rate; if the interest rate embedded in the lease cannot be determined, the incremental borrowing rate of the
lessee is used as the discount rate. The Group calculates the interest expenses on lease liabilities at a fixed periodic rate
for each period of the lease term and recognizes it in current profit or loss, unless otherwise provided for in the cost of the
relevant assets.
After the commencement date of the lease term, the Group increases the carrying amount of the lease liability when
interest is recognized and decreases the carrying amount of the lease liability when lease payments are made. When
there is a change in the substantial fixed payment, a change in the estimated payable amount of the guaranteed residual
value, a change in the index or ratio used to determine the lease payment, or a change in the evaluation result or actual
exercise of the purchase option, renewal option or termination option, the Group remeasures the lease liability at the
present value of the changed lease payment.
Short-term lease and low-value asset lease
The Group recognizes the lease with a lease term of no more than 12 months from the commencement date and
excluding the purchase option as a short-term lease; a lease with a low value when a single leased asset is a new asset
is recognized as a low-value asset lease. The Group chooses not to recognize right-of-use assets and lease liabilities for
short-term leases and low-value asset leases. During the lease term, the relevant asset costs or current profits or losses are
recognized on a straight-line basis for each period.
Leaseback
The Group assesses whether the transfer of assets in leaseback transactions is a sale in accordance with Note V.
As the lessee
Where asset transfer under the leaseback transactions is a sale, as the lessee, the Group shall measure the right-of- use
assets created by the leaseback based on the portion of book value of the original assets related to right of use obtained
upon leaseback, and only recognize relevant profit or loss for the right transferred to the lessor. Where asset transfer
under leaseback transactions is not a sale, as the lessee, the Group shall continue to recognize the transferred assets while
recognizing a financial liability equal to the transfer income, and shall carry out accounting treatment for such financial
liability according to Note V.
Lease classification standards and accounting treatment method as a lessor
√ Applicable Not Applicable
As a lessor
A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards of
asset ownership to the lessee on the commencement date. All leases other than financial leases are classified as operating
leases.
As a lessor of operating lease
Rental income from the operating lease in each stage during the lease term should be recognized as the current profit
or loss by the straight-line method, and the variable lease payments not included in the lease receipts are recognized in
profit or loss when they are actually incurred. Initial direct costs are capitalized and amortized over the lease term on the
same basis as the recognition of rental income, and are included in current profit or loss.
39. Other accounting policies and accounting estimates
√ Applicable Not Applicable
Work safety expenses
The Company withdraws the work safety expenses according to provisions, includes them in the cost of related products
Section X Financial Report
or the current profit or loss, and includes them in special reserves at the same time. The costs are handled separately
depending on whether they form fixed assets: when withdrawn work safety expenses are used within the prescribed
range and belong to expenses, such costs shall be directly deducted from special reserves; where a fixed asset is formed,
the expenses incurred through collection are recognized as the fixed asset when it is ready for its intended use, and the
equivalent special reserve is written off and the equivalent accumulated depreciation is confirmed.
Fair value measurement
On the balance sheet date, the Group will measure the equity instrument investment with the fair value. Fair value is a
receivable price for selling an asset or a demanding price for transferring a liability for participants in the market in the
orderly transactions during the measuring period.
For assets and liabilities measured at or disclosed by their fair value in the financial statements, the level of the
measurement result of fair value shall subject to the lowest level which the input having great significance to the entire
measurement of fair value belongs to: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identical
assets or liabilities available on the measurement date; Level 2 inputs refer to inputs that are directly or indirectly
observable for the assets or liabilities other than Level 1 inputs; Level 3 inputs refer to unobservable inputs of the relevant
assets or liabilities.
On each balance sheet date, the Group reevaluates the assets and liabilities continuously measured at fair value and
recognized in the financial statements in order to determine whether there is a conversion among the levels of fair value
measurement.
Asset securitization
The Group securitizes part of its accounts receivable and contract assets (“trust property”) and entrusts the assets to a
structured entity, which issues senior asset-backed securities to investors. After paying the trust tax burden and relevant
expenses, trust property is given priority to pay to principal and interest of senior asset-backed securities. After paying
all 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 be
consolidated based on the subordinated shares held, the performance remuneration enjoyed, and the rights held. If the
Group retains the contractual right to receive cash flows from financial assets but assumes the contractual obligation to
pay the cash flows received to one or more final recipients, the Group shall determine the relevant accounting treatment
in accordance with Note 5 considering the risk and reward of the assets transferred to other entities if and only if the
following three conditions are met at the same time, otherwise the Group continues to recognize the transferred financial
assets: the Group is obliged to pay the cash flows to the final recipient only when it receives equivalent cash flows from
the financial assets; the transfer contract prohibits the Group from selling or pledging such financial assets, but the Group
can use it as a guarantee for the obligation to pay cash flows to the final recipient; and the Group is obliged to transfer all
cash flows collected on behalf of the final recipient to the final recipient in a timely manner without significant delay.
Significant accounting judgment and estimate
Preparation of the financial statements requires the management to make judgment, estimation and hypothesis that
will have an impact on the presentation amounts and disclosure of the incomes, expenses, assets and liabilities, and the
disclosure of contingent liabilities on the balance sheet date. The result incurred due to uncertainty of these hypotheses
and estimates may cause significant adjustment of book values of those assets or liabilities influenced in the future.
Judgment
In the application of the Group’s accounting policies, the management has made the following judgments that have a
material impact on the amounts recognized in the financial statements:
Determination of the performance progress of construction contracts (only applicable to transfer of control over a period
of time)
For construction projects, port machinery and heavy equipment construction contracts, the Group determines the
performance progress according to the proportion of the cumulative actual construction cost to the estimated total
ANNUAL REPORT 2023
cost, while the cumulative actual cost includes the direct cost and indirect cost in the process of transferring goods to
customers; for steel structure and related construction contracts, the Group determines the performance progress based
on the proportion of the cumulative actual output tonnage to the estimated total tonnage. The Group believes that the
construction contract price with customers is determined on the basis of construction cost or output tonnage, and the
proportion of the actual construction cost or comprehensive tonnage to the estimated total cost can or estimated total
tonnage can truly reflect the performance progress of construction services. In view of the long duration of construction
contracts, which may span several accounting periods, the Group will recheck and revise the budget with the progress of
the construction contracts, and adjust the amount of revenue recognized accordingly.
Uncertainty of estimation
The following are other key sources of the uncertainty of the key assumptions and estimates in the future on the balance
sheet date, which may lead to major adjustments in the book value of the assets and liabilities of next fiscal year.
Impairment of financial instruments and contract assets
The Group adopts the expected credit loss model to assess the impairment of financial instruments and contract assets.
The application of the expected credit loss model requires significant judgments and estimates. It must consider all
reasonable and evidence-based information, including forward-looking information. In making such judgments and
estimates, the Group infers expected changes in debtors' credit risk based on historical repayment data combined
with economic policies, macroeconomic indicators, industry risks and other factors. Different estimates may affect the
provision for impairment, and the amount of impairment that has been provided may be not equal to the actual amount
of future impairment losses.
Inventory depreciation reserves
The management shall estimate the net realizable value of inventories in time so as to estimate the provision for
depreciation of inventories. If any event or circumstance changes, it is necessary to use the estimate to make the provision
for depreciation of inventories if the inventory is not likely to realize the relevant value. If the expected amount is different
from the original estimate, the relevant difference will affect the book value of the inventories and the impairment loss
during the estimated change.
Impairment of goodwill
The Group tests whether the goodwill is impaired at least annually. This requires an estimate of the present value of the
future cash flows of the asset group or combination of asset groups to which goodwill is allocated. When estimating
the present value of future cash flows, the Group needs to estimate the cash flow generated by future asset groups or
combination of asset groups, and select the appropriate discount rate to determine the present value of future cash flows.
See Note VII for details.
Fair value of unlisted equity investments
The Group uses the market approach to determine the fair value of unlisted equity investments. This requires the Group
to identify comparable listed companies, select market multipliers, estimate liquidity discounts, etc. and is therefore
subject to uncertainty.
Impairment of non-current assets other than financial assets (other than goodwill)
On the balance sheet date, the Group judges whether there are any signs of possible impairment of non-current assets
other than financial assets. Non-current assets other than financial assets are tested for impairment when there is an
indication showing that their book amounts are irrecoverable. When the book value of an asset or asset group is higher
than the recoverable amount, that is, the higher of the net amount from fair value less the disposal expense and the
present value of the estimated future cash flow, it indicates that the impairment occurred. The net amount after the fair
value minus the disposal expenses is determined by reference to the sales agreement price of similar assets in the fair
trade or the observable market price, minus the incremental cost directly attributable to the disposal of the asset. When
estimating the present value of future cash flows, management must estimate the expected future cash flows of the asset
or asset group and select an appropriate discount rate to determine the present value of future cash flows.
Section X Financial Report
40. Changes in significant accounting policies and accounting estimates
(1). Changes in significant accounting policies
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Significantly affected Influenced
Content and cause of changes in accounting policies
statement item name amount
Recognition of deferred income tax related to leases
According 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 affect accounting profit or taxable income
(or deductible losses) when the transaction occurs, with initial recognition of assets and liabilities resulting in
equal taxable temporary differences and deductible temporary differences, the provisions on exemption from
initial recognition of deferred income tax are not applicable. The above provisions took effect on January 1,
Deferred tax assets and
2023. According to the provisions on connection, the Group has made adjustments to the above transactions 0
deferred tax liabilities
that occurred between the beginning of the earliest period of financial statements for the first implementation
of the Interpretation and the date of the change in accounting policies; for the lease liabilities and right-of-use
assets recognized at the beginning of the earliest period of financial statements for the first implementation of
the Interpretation due to the above transactions, if taxable temporary differences and deductible temporary
differences arise, the Group will adjust the relevant financial statement items of the earliest period of financial
statements by the cumulative impact.
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 financial statements at the beginning of the year of first-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 tax Basis of tax computation Tax rate
VAT is applicable to the sales of the Group’s products. The taxable income from the sales of
the products in domestic market is subject to the output tax as per 13%; the products for
export adopt the method of “tax exemption, tax deduction and tax reimbursement” and the
applicable tax rate is 13%. The Group’s income from the marine transport is applicable to
The difference between the output VAT, and the output tax is calculated as per 9%; the income from leasing of the equipment
tax calculated by applicable tax is applicable to VAT and the output tax is calculated as per 13% of the taxable income; the
VAT
rate, after deducting the deductible income from the sales of the equipment is applicable to the simple collection measures of
input tax VAT and the tax rate is subject to the reduced tax rate of 2%; the Group’s income from the
leasing of the housing is applicable to the simple collection measures of VAT and the tax
rate is 5%; the item “B-T” is applicable to VAT and the output tax on the taxable income is
collected at 9%. The above output tax shall calculate and pay VAT after deducting the amount
of input tax deductible, except for the applicable VAT’s simple collection method.
ANNUAL REPORT 2023
Category of tax Basis of tax computation Tax rate
Urban maintenance The amount of value-added tax
and construc tion actually paid and exempted upon Calculated and paid according to 7% and 3% of the turnover tax actually paid and exempted
tax and education the official approval by the State upon the official approval by the State Administration of Taxation.
surcharge Administration of Taxation
The enterprise income tax is calculated and paid in accordance with the Enterprise Income
Tax 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 of
Enterprise income the Certification of High-tech Enterprises (GKFH [2016] No. 32) and the Guidelines for
Taxable income
tax the 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. The
Company actually applied the enterprise income tax rate of 15% this year (2022: 15%).
Where there are taxpayers with different enterprise income tax rates, the disclosure shall be stated
√ Applicable Not Applicable
Name of taxpayer Income tax rate (%)
The Company 15%
Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd. 15%
Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd. 16.5%
Shanghai Zhenhua Shipping Co., Ltd 25%
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., Ltd 25%
ZPMC Machinery Equipment Services Co., Ltd. 25%
Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd. 25%
Shanghai Port Machinery Heavy Industry Co., Ltd 25%
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., Ltd 25%
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 Coperatie 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 Hamburg 32.25%
ZPMC Lanka Company (Private) Limited 30%
ZPMC North America Inc. 29%
ZPMC Korea Co., Ltd. 20%
ZPMC Engineering Africa (Pty) Ltd. 28%
ZPMC Engineering (India) Private Limited 25.17%
ZPMC Southeast Asia Holding Pte. Ltd. 17%
ZPMC Engineering (Malaysia) Sdn. Bhd. 24%
ZPMC Australia Company (Pty) Ltd. 30%
ZPMC Brazil Servio Portuários LTDA 25%
Section X Financial Report
Name of taxpayer Income tax rate (%)
ZPMC Limited Liability Company 20%
ZPMC NA East Coast lnc. 33%
ZPMC Middle East FZE 0%
ZPMC UK LD 19%
Greenland Heavylift (Hong Kong) Limited 16.5%
GPO Grace Limited 0%
GPO Amethyst Limited 0%
GPO Sapphire Limited 0%
GPO Emerald Limited 0%
GPO Heavylift Limited 0%
GPO Heavylift AS 0%
GPO Heavylift Pte Ltd 17%
ZPMC Latin America Holding Corporation 5%
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 Offshore 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 Applicable
Shanghai 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 Manufacturing
Co., Ltd. won the High-tech Enterprise Certificate (No.: GR202132001798) in November 2021, with the valid term of 3
years. Shanghai Zhenhua Heavy Industries Group (Nantong) Transmitter Co., Ltd. won the High-tech Enterprise Certificate
(No.: GR202232002981) in 2022, with the valid term of 3 years. Shanghai Zhenhua Heavy Industries Electric Co., Ltd won
the Hi-tech Enterprise Certificate (No.: GR202331003809) in December 2023, with the valid term of 3 years. In accordance
with relevant provisions in Article 28 of the Income Tax Law, the actually applicable enterprise income tax rate for these
companies in this year was 15% (2022: 15%).
3. Others
Applicable √ Not Applicable
VII. Notes to the main items of the consolidated financial statements
1. Monetary funds
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Cash on hand 494,809 1,027,476
Bank deposits 5,031,675,096 2,374,073,961
Other monetary funds 72,908,531 21,946,276
Total 5,105,078,436 2,397,047,713
Including: total amount of overseas deposits 1,039,089,864 1,253,939,219
ANNUAL REPORT 2023
2. Held-for-trading financial assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Reasons and basis for
Item December 31, 2023 December 31, 2022
designation
Financial assets measured at fair value through the current profit or loss 720,594,675 877,483,342 /
Including:
Derivative financial assets – equity options (i) 8,438,278 8,438,278 /
Investments in shares of listed companies (ii) 712,156,397 869,045,064 /
Financial assets designated to be measured at fair value through the
current profit or loss
Including:
Total 720,594,675 877,483,342 /
Other description:
√ Applicable Not Applicable
(i) As at December 31, 2023, the held-for-trading financial assets- derivative financial assets – equity options held by the
Group refers to the fair value of the right obtained at the time of acquiring Greenland Heavylift (Hong Kong) Limited to
purchase 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 Jiangxi
Huawu Brake Co., Ltd., 1.16% equity of CRSC, 0.96% equity of Qingdao Port International Co., Ltd., and 0.01% equity of
COSCO Shipping Holdings Co., Ltd.
3. Derivative financial assets
Applicable √ Not Applicable
4. Notes receivable
(1). Presentation of notes receivable by category
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Bank acceptance bill
Commercial acceptance bill 14,122,031 56,114,657
Total 14,122,031 56,114,657
(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 Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Explanation of significant changes in the book balance of notes receivable with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
(5). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(6). Notes receivable actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of notes receivable:
Applicable √ Not Applicable
Explanation of write-off of notes receivable:
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
5. Accounts receivable
(1). Disclosure by aging
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Aging December 31, 2023 December 31, 2022
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 4,922,793,284 4,719,933,460
1- 2 years 1,497,051,338 856,147,852
2- 3 years 625,448,724 1,917,825,421
Over 3 years
3- 4 years 866,155,324 673,336,029
4- 5 years 652,981,128 176,228,829
Over 5 years 1,274,119,208 1,167,076,085
Total 9,838,549,006 9,510,547,676
(2). Disclosure by bad debt calculation method
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion of Book value Proportion Proportion of Book value
Amount Amount Amount Amount
(%) provision (%) (%) provision (%)
Provision for bad
debts accrued on an 908,640,230 9 837,390,899 92 71,249,331 896,540,136 9 825,285,390 92 71,254,746
individual basis
Including:
ANNUAL REPORT 2023
December 31, 2023 December 31, 2022
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion of Book value Proportion Proportion of Book value
Amount Amount Amount Amount
(%) provision (%) (%) provision (%)
Provision for bad
8,929,908,776 91 1,734,860,005 19 7,195,048,771 8,614,007,540 91 1,491,612,431 17 7,122,395,109
debts by portfolio
Including
Total 9,838,549,006 / 2,572,250,904 / 7,266,298,102 9,510,547,676 / 2,316,897,821 / 7,193,649,855
Individual provision for bad debts:
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Accounts receivable 1 474,995,540 403,746,209 85 Counterparty financial shortage
Description of individual provision for bad debts:
√ Applicable Not Applicable
As of December 31, 2022, the accounts receivable with provision for bad debts accrued on an individual basis are as
follows:
December 31, 2023
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Accounts receivable 1 475,031,639 403,776,893 85 Counterparty financial shortage
Provision for bad debts by portfolio:
Applicable √ Not Applicable
Provision for bad debts is calculated based on the general model of expected credit loss
Applicable √ Not Applicable
Explanation of significant changes in the book balance of accounts receivable with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
(3). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(4). Accounts receivable actually written off in the current period
Applicable √ Not Applicable
Write-off of important accounts receivable
Applicable √ Not Applicable
Explanation of write-off 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
Other description:
√ Applicable Not Applicable
Section X Financial Report
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
2023 2022
The estimated The book balance The estimated The book balance
Accruing Accruing
default the whole of Expected credit default the whole of Expected credit
proportion (%) proportion (%)
duration loss duration loss
Within 1 year 4,918,235,383 4 180,647,988 4,717,806,043 4 183,619,656
1-2 years 1,497,010,838 12 180,463,562 856,147,852 13 111,990,696
2-3 years 625,448,724 30 190,373,412 1,808,064,282 26 470,904,017
3-4 years 756,394,186 53 400,921,875 230,551,083 38 87,894,312
4-5 years 214,716,181 50 107,993,104 161,998,029 59 94,864,959
Over 5 years 918,103,464 73 674,460,064 839,440,251 65 542,338,791
Total 8,929,908,776 1,734,860,005 8,614,007,540 1,491,612,431
As at December 31, 2023, the top five accounts receivable and contract assets are as follows:
Accounts Accounts receivable Proportion in total year- Provision for bad debts of accounts
Contract assets
receivable Balance and contract assets end balance of accounts receivable and provision for
Balance at the end
at the end of the Balance at the end of receivable and contract impairment of contract assets Balance
of the current year
current year the current year assets (%) at the end of the current year
Client 1 129,907,741 545,737,488 675,645,229 5 93,172,418
Client 2 529,999,000 - 529,999,000 4 -
Client 3 487,062,623 9,532,053 496,594,676 4 -
Client 4 474,995,538 - 474,995,538 4 403,746,208
Client 5 358,198,795 - 358,198,795 3 -
Total 1,980,163,697 555,269,541 2,535,433,238 20 496,918,626
6. Contract assets
(1). Particulars about contract assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Warranty balance recognized at the time
698,290,178 103,987,647 594,302,531 649,826,261 49,774,565 600,051,696
of control transfer (Remark 1)
Outstanding payments for construction
2,293,374,852 108,044,249 2,185,330,603 2,704,018,170 60,996,730 2,643,021,440
completed (Remark 2)
Total 2,991,665,030 212,031,896 2,779,633,134 3,353,844,431 110,771,295 3,243,073,136
Remark 1: When the Group sells equipment to customers and provides relevant installation services, it constitutes a single performance obligation. When the
Group recognizes revenue at the time of fulfilling 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 conditionally
collect the consideration from the customer. Therefore, the Company recognizes the non-invoiced contract receivables as contract assets, and the contract
assets 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 steel
structure and heavy equipment product manufacturing, and recognizes revenue within a period of time to form contract assets. The contract assets will
form unconditional collection right at the time of project settlement and are transferred in receivables. The customers shall settle accounts with the Group
on the performance progress of the delivery of large port machinery and equipment, engineering construction services and steel structure and heavy
equipment products under contract provisions, and pay the contract price according to the credit period specified in the contract after settlement. The part
of the income amount recognized by the Group according to the performance progress exceeding the settled price is recognized as contract assets, and the
part 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), 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,
ANNUAL REPORT 2023
2022: Long-term borrowings of RMB 2,469,639,584).
(2). Amount of and reason for significant changes in book value during the reporting period
Applicable √ Not Applicable
(3). Disclosure by bad debt calculation method
Applicable √ Not Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision for bad debts by portfolio:
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023
Name
Contract assets Provision for bad debt Proportion (%)
Within 1 year 2,410,170,070 105,188,502 4
1- 2 years 507,865,980 80,314,538 16
2- 3 years 66,292,715 22,418,514 34
Over 3 years 7,336,265 4,110,342 56
Total 2,991,665,030 212,031,896
Explanation of provision for bad debts accrued by portfolio [Double click to switch]
Applicable √ Not Applicable
Provision for bad debts is calculated based on the general model of expected credit loss
Applicable √ Not Applicable
Explanation of significant changes in the book balance of contract assets with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
(4). Provision for bad debts of contract assets of the current period
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Provision in the current Recovery or reversal in the Write-off/charge-off in the
Item Reason
period current period current period
Warranty balance recognized at the time of
69,719,395 -15,506,313
control transfer
Outstanding payments for construction
47,047,519
completed
Total 116,766,914 -15,506,313 /
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(5). Contract assets actually written off in the current period
Applicable √ Not Applicable
Section X Financial Report
Significant write-off of contract assets
Applicable √ Not Applicable
Note to contract asset write-off:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
7. Receivables financing
(1). Receivables financing presented by category
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Bank acceptance bill 485,743,897 145,939,266
Digital debt voucher of accounts receivable 479,825,225 293,973,162
Total 965,569,122 439,912,428
(2). Receivables financing pledged by the Company at the end of the period
Applicable √ Not Applicable
(3). Receivables financing 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: CNY
Item Derecognition amount at the end of period Amount not derecognized at the end of period
Bank acceptance bill 1,379,604,571
Digital debt voucher of accounts receivable 33,809,204
Total 1,413,413,775
(4). Disclosure by bad debt calculation method
Applicable √ Not Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision for bad debts by portfolio:
Applicable √ Not Applicable
Provision for bad debts is calculated based on the general model of expected credit loss
Applicable √ Not Applicable
Explanation of significant changes in the book balance of receivables financing with changes in provisions for losses in
the current period:
Applicable √ Not Applicable
(5). Provision for bad debts
Applicable √ Not Applicable
ANNUAL REPORT 2023
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(6). Receivables financing actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of receivables financing
Applicable √ Not Applicable
Note to write-off:
Applicable √ Not Applicable
(7). Increase or decrease and changes in fair value of receivables financing 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: CNY
December 31, 2023 December 31, 2022
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 1,209,014,804 92 821,657,082 86
1-2 years 43,155,573 3 26,224,985 3
2-3 years 24,603,752 2 18,112,942 2
Over 3 years 37,059,934 3 85,217,413 9
Total 1,313,834,063 100 951,212,422 100
Explanation of the reasons why the advances to suppliers with the aging over one year and a significant amount is not
settled 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 (as
at December 31, 2022: RMB 129,555,340), mainly the advances to suppliers for the procurement of imported parts, which
has 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, 2023 Proportion in total ending balance of prepayment(%)
Total advances to suppliers of top 5 balances 411,011,680 31
Total 411,011,680 31
Other description
Applicable √ Not Applicable
9. Other receivables
Item presentation
√ Applicable Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Interest receivable
Dividends receivable 8,000,000
Other receivables 1,245,727,441 987,545,297
Total 1,245,727,441 995,545,297
Other description:
Applicable √ Not Applicable
Interest receivable
(1). Classification of interest receivable
Applicable √ Not Applicable
(2). Significant overdue interest
Applicable √ Not Applicable
(3). Disclosure by bad debt calculation method
Applicable √ Not Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Explanation of significant changes in the book balance of interests receivable with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
(5). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(6). Interests receivable actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of interests receivable
Applicable √ Not Applicable
Note to write-off:
√ Applicable Not Applicable
Other description:
Applicable √ Not Applicable
ANNUAL REPORT 2023
(7). Dividends receivable
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item (or the invested entity) December 31, 2023 December 31, 2022
Suzhou Chuanglian Electric Drive Co., Ltd. 8,000,000
Total 8,000,000
(8). Significant dividends receivable aging over 1 year
Applicable √ Not Applicable
(9). Disclosure by bad debt calculation method
Applicable √ Not Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Explanation of significant changes in the book balance of dividends receivable with loss provision changes in the current
period:
Applicable √ Not Applicable
(11). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(12). Dividends receivable actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of dividends receivables
Applicable √ Not Applicable
Note to write-off:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
Other receivables
(13). Disclosure by aging
√ Applicable Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Aging December 31, 2023 December 31, 2022
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 1,041,458,135 889,793,874
1-2 years 185,596,565 107,718,693
2-3 years 67,413,075 14,649,282
Over 3 years
3-4 years 5,824,513 8,519,028
4-5 years 1,837,702 43,062,407
Over 5 years 228,825,263 188,072,813
Total 1,530,955,253 1,251,816,097
(14). Classification by nature of funds
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Nature of funds December 31, 2023 December 31, 2022
Unpaid taxes receivable 794,770,088 385,097,393
Secured repayment 164,124,678 164,124,678
Receivables from third parties 157,909,657 155,389,892
Bid and performance bond 123,271,714 80,063,435
Lease payment receivable 48,652,496 41,353,253
Customs-related security deposit 47,556,497 267,023,626
Money on call for product field service 16,569,231 23,907,573
Staff borrowings receivable 12,300,811 13,446,973
Export rebates 12,141,232 7,654,374
Others 153,658,849 113,754,900
Total 1,530,955,253 1,251,816,097
(15). Provision for bad debts
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Provision for bad debts Expected credit loss for the Expected credit loss for Total
Expected credit losses over
entire duration (no credit the entire duration (credit
the next 12 months
impairment) impairment has occurred)
Balance as at January 1, 2023 33,506,509 230,764,291 264,270,800
Balance as at January 1, 2023 in current
period
--Transferred to Stage II
--Transferred to Stage III
--Reversal to Stage II
--Reversal to Stage I
Provision in the current period 20,957,012 20,957,012
Reversal in the current period
Write-off in the current period
Charge-off in the current period
Other changes
Balance as at December 31, 2023 54,463,521 230,764,291 285,227,812
ANNUAL REPORT 2023
Description of significant changes in book balance of other receivables with changes in loss provision in the current
period
Applicable √ Not Applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial
instruments has increased significantly:
Applicable √ Not Applicable
(16). Provision for bad debts
Applicable √ Not Applicable
Including the reversed or recovered provision for bad debts with significant amount in the current period:
Applicable √ Not Applicable
(17). Other receivables actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of other receivables:
Applicable √ Not Applicable
Explanation of write-off 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
Proportion in the Balance of provision
Name December 31, 2023 total balance of other Nature Aging for bad debts at the
receivables (%) end of the year
Other receivables 1 437,759,566 29 Customs-related security deposit Within 1 year -
Other receivables 2 164,124,678 11 Secured repayment Over 5 years 164,124,678
Taxes on outstanding payment
Other receivables 3 65,462,896 4 4-5 years 43,161,841
receivable
Other receivables 4 54,433,215 4 Advance payment 3-7 years 54,433,215
Other receivables 5 54,202,336 4 Receivables from related parties Within 1 year -
Total 775,982,691 52 / / 261,719,734
(19). Presented in other receivables due to centralized fund management
Applicable √ Not Applicable
Other description:
√ Applicable Not Applicable
2023
Book balance Provision for bad debts
Book value
Amount Proportion (%) Amount Accruing proportion (%)
Provision for bad debts accrued on an
230,764,709 15 230,764,709 100 -
individual basis
Account receivable accrued for provision of
bad debts according to the portfolio of the
1,300,190,544 85 54,463,103 4 1,245,727,441
credit risk characteristics Provision for bad
debts
Total 1,530,955,253 100 285,227,812 19 1,245,727,441
Section X Financial Report
Other significant receivables with provision for bad debts accrued on an individual basis are as follows:
2023 2022
Provision for bad Proportion of Provision for
Book balance Reason for provision Book balance
debts provision (%) bad debts
Contract disputes Shortage
Other receivables 1 164,124,678 164,124,678 100 164,124,678 164,124,678
of funds of the other party
Other receivables 2 54,433,215 54,433,215 100 Contract dispute 54,433,215 54,433,215
Total 218,557,893 218,557,893 218,557,893 218,557,893
As at December 31, 2023, other receivables with provision for bad debts accrued by portfolio are as follows:
Book balance Provision for impairment Proportion of provision (%)
Aging risk portfolio 1,300,190,544 54,463,103 4
10. Inventories
(1). Classification
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Provision for inventory Provision for inventory
Item depreciation/ provision depreciation/ provision
Book balance Book value Book balance Book value
for impairment of contract for impairment of contract
performance cost performance cost
Raw materials 3,675,673,907 41,709,552 3,633,964,355 3,563,755,666 51,313,490 3,512,442,176
Goods in process 21,287,200,068 827,924,453 20,459,275,615 18,402,900,715 651,631,433 17,751,269,282
Stock commodities 26,832,901 26,832,901 20,380,324 - 20,380,324
Revolving materials
Consumptive
biological assets
Contract
161,329,305 161,329,305 229,287,566 229,287,566
performance cost
Total 25,151,036,181 869,634,005 24,281,402,176 22,216,324,271 702,944,923 21,513,379,348
(2). Provision for inventory depreciation and provision for impairment of contract performance cost
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase in the current period Decrease in the current period
Item December 31, 2022 December 31, 2023
Provision Other Reversal or write- off Other
Raw materials 51,313,490 11,955,120 -21,559,058 41,709,552
Goods in process 651,631,433 347,855,229 -171,562,209 827,924,453
Stock commodities
Revolving materials
Consumptive
biological assets
Contract
performance cost
Total 702,944,923 359,810,349 -193,121,267 869,634,005
Reasons for reversing or writing off the provision for inventory depreciation in the current period
Applicable √ Not Applicable
ANNUAL REPORT 2023
Accrual of provision for inventory depreciation by portfolio
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Name of portfolio Ratio of provision Ratio of provision
Depreciation Depreciation
Book balance for inventory Book balance for inventory
provision provision
depreciation (%) depreciation (%)
Sub-total of items
3,201,984,582 3,131,101,196
within 1 year
1-2 years 250,956,516 159,290,989
2-3 years 50,082,304 2,477,163 5 56,959,288 3,059,360 5
Over 3 years 172,650,505 39,232,389 23 216,404,193 48,254,130 22
Total 3,675,673,907 41,709,552 3,563,755,666 51,313,490
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 Applicable
Other description
√ Applicable Not Applicable
Reasons for provision for depreciation of
Specific basis for determination of net realizable values inventories reversed or written-off in the
current year
Raw materials and
Difference between the net realizable value of raw materials and outsourced
outsourced parts and Value recovery, consuming or external sales
parts and components and their book value resulting from product price fall
components
Difference between the net realizable value and the book value of goods in Value recovery, transferred for self-use or
Goods in process
process external sales
Total amount of possible penalties for failure to fulfill the obligations as contracted:
2023 2022
Valid letter of guarantee signed by the bank 16,938,583,230 14,198,954,467
Letter of guarantee not signed by the bank 7,058,112,002 8,124,948,765
Total 23,996,695,232 22,323,903,232
11. Assets held for sale
Applicable √ Not Applicable
12. Non-current assets due within one year
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Debt investment due within one year
Other debt investments due within one year
Long-term receivables due within one year 1,341,408,631 900,213,411
Total 1,341,408,631 900,213,411
Section X Financial Report
Debt investment due within one year
Applicable √ Not Applicable
Other debt investments due within one year
Applicable √ Not Applicable
13. Other current assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Contract acquisition cost
Return cost receivable
Input tax to be deducted 459,437,837 261,819,250
Prepaid income tax 17,288,544 17,248,091
Total 476,726,381 279,067,341
14. Debt investment
(1). Particulars about debt investment
Applicable √ Not Applicable
Changes 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 Applicable
Explanation of significant changes in the book balance of debt investments with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly
Applicable √ Not Applicable
(4). Actual write-off of debt investments in the current period
Applicable √ Not Applicable
Including important notes for write-off of debt investments
Applicable √ Not Applicable
Explanation of write-off of debt investments:
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
15. Other debt investments
(1). Particulars about other debt investments
Applicable √ Not Applicable
ANNUAL REPORT 2023
Changes 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 Applicable
Explanation of significant changes in the book balance of other debt investments with changes in provisions for losses in
the current period:
Applicable √ Not Applicable
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly
Applicable √ Not Applicable
(4). Other debt investments actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of other debt investments
Applicable √ Not Applicable
Explanation of write-off of debt investments:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
16. Long-term receivables
(1). Long-term receivables
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Discount
Item Provision for Provision for
Book balance Book value Book balance Book value rate range
bad debt bad debt
Financing lease
Including: Unrealized financing
income
Goods sold on installment
Services provided on installment
Receivables from “Building –
Transfer” project
- Principal 2,440,824,581 2,440,824,581 3,057,984,503 3,057,984,503
- Interest receivable 357,766,509 357,766,509 244,494,473 244,494,473
Less: Long-term receivables due
1,341,408,631 1,341,408,631 900,213,411 900,213,411
within one year
Total 1,457,182,459 1,457,182,459 2,402,265,565 2,402,265,565 /
Section X Financial Report
As at December 31, 2023 and December 31, 2022, the account receivable from “Building – Transfer” project was the
principal invested in above “Building – Transfer” project by the Group, and the amount of interest receivable was the
financing 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: RMB
2,212,190,758), 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 Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Description of significant changes in the book balance of long-term receivables with changes in provisions for losses in
the current period:
Applicable √ Not Applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial
instruments has increased significantly
Applicable √ Not Applicable
(4). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
(5). Long-term receivable actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of long-term receivables:
Applicable √ Not Applicable
Explanation of write-off of long-term receivables:
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
17. Long-term equity investments
(1). Long-term equity investments
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase/decrease in the current period
Provision for
December 31, Profit or loss Adjustment Dividends December 31, impairment
Invested entity Further Reduced on investments of other Changes in or profit Provision for
2022 Other 2023 at the end of
investment investment under the equity comprehensive other equity declared to be impairment the year
method income distributed
I. Joint ventures
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd 364,936,081 1,466,212 366,402,293
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 396,692 75,782 472,474
ZPMC-OTL MARINE CONTRACTOR LIMITED
Zhenhua Marine Energy (HK) Co., Ltd. (i)
Cranetech Global Sdn. Bhd. 632,180 632,180
Sub-total 365,964,953 1,541,994 367,506,947
II. Associates
CCCC Financial Leasing Co., Ltd (i) 674,329,533 72,459,680 -816,869 -19,561,335 -104,370,656 622,040,353
CCCC Yancheng Construction Development Co., Ltd. 418,516,242 418,516,242
CCCC Estate Yixing Co., Ltd. 206,795,481 4,862,637 211,658,118
CCCC South American Regional Company SARL 194,391,003 -7,397,705 -894,845 186,098,453
China communications Construction USA Inc. 59,980,865 261,190 993,306 61,235,361
CCCC Photovoltaic Technology Co., Ltd (iii) 34,819,763 873,713 35,693,476
ZPMC Changzhou Coatings Co., Ltd. 17,759,473 5,843,354 23,602,827
Suzhou Chuanglian Electric Drive Co., Ltd. 12,632,366 -72,934 12,559,432
CCCC Xiongan Urban Construction Development Co., Ltd. (ii) 7,540,333 32,936 7,573,269
Shanghai Ocean Engineering Equipment Manufacturing Innovation
5,508,011 -812,409 4,695,602
Center Co., Ltd.
ZPMC Southeast Asia Pte. Ltd 4,070,835 827,465 4,898,300
Shanghai Xingyi Construction Technology Co., Ltd. 571,067 -391,825 179,242
CCCC Marine Engineering & Technology Research Center Co., Ltd.
Sub-total 1,636,914,972 76,486,102 -718,408 -19,561,335 -104,370,656 1,588,750,675
Total 2,002,879,925 78,028,096 -718,408 -19,561,335 -104,370,656 1,956,257,622
ANNUAL REPORT 2023
Section X Financial Report
(2). Impairment test of long-term equity investments
Applicable √ Not Applicable
Other description
Joint 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 contributed
USD 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 least
75% shareholders via voting. Hence, the Group has no control right but jointly controls Zhenhua Marine Energy together
with the partner.
Associates:
(i) On December 31, 2021, the Company transferred its 21% equity in CCCC Financial Leasing Co., Ltd to CCCC Capital
Holdings Co., Ltd. by way of non-disclosure agreement. Both parties have agreed that the transition period of the
aforesaid equity transfer is from July 1, 2021 to December 31, 2021, the profit or loss of the aforesaid equity during the
transition period was determined based on the audited financial statements on June 30, 2021 and the audited financial
statements of 2021 of CCCC Financial Leasing Co., Ltd., and the profit or loss of the target equity during the transition
period shall be enjoyed or borne by the Company. On August 28, 2023, CCCC Financial Leasing Co., Ltd. signed a capital
increase and share expansion agreement with each shareholder. Other shareholders increased their capital by a total of
RMB 3.5 billion, and the Company’s shareholding ratio dropped to 5.82%.According to relevant provisions of the Articles
of Association, after the equity sale, the Company has the right to appoint one director to it, and can exert significant
influence on the company.
(ii) On June 23, 2020, the Company invested to establish CCCC Xiongan Urban Construction Development Co., Ltd. The
registered 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 of
Association, the Company has the right to appoint one director to CCCC Xiongan Urban Construction Development Co.,
Ltd, and can exert significant influence on the company.
(iii) On November 28, 2022, the Company invested to establish CCCC Photovoltaic Technology Co., Ltd. The registered
capital was RMB 200,000,000. The Company contributed RMB 60,000,000 with the shareholding ratio of 30%. The
company was mainly engaged in photovoltaic power generation business. According to relevant provisions of the Articles
of Association, the Company has the right to appoint one director to CCCC Photovoltaic Technology Co., Ltd, and can
exert significant influence on the company.
18. Other equity instrument investment
(1). Particulars about other equity instrument investment
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase/decrease in the current period
Dividend Accumulated Accumulated Reasons for financial
Gains included Losses included income gains included losses included assets designated to
December in other in other December
Item Further Reduced recognized in other in other be measured at fair
31, 2022 comprehensive comprehensive Others 31, 2023
investment investment in the current comprehensive comprehensive value through other
income in the income in the period income income comprehensive income
current period current period
Hunan Fengri Power & Electric Co., Strategic investment,
30,657,862 706,627 29,951,235 335,790 9,953,075
Ltd. long-term holding
CCCC Highway Bridges National Strategic investment,
22,151,670 2,835,329 24,986,999 11,986,999
Engineering Research Centre Co., Ltd. long-term holding
Jiangsu Zhangjinggao Bridge Co., Strategic investment,
16,790,000 16,790,000
Ltd. long-term holding
Ningbo Weilong Port Machinery Co., Strategic investment,
5,825,195 2,000,000 7,507,981 15,333,176 12,037,176
Ltd. long-term holding
CCCC National Engineering Research
Strategic investment,
Center of Dredging Technology and 8,938,170 1,502,325 10,440,495 4,040,495
long-term holding
Equipment Co., Ltd.
Shenyang Weichen Crane Equipment Strategic investment,
5,205,300 1,412,354 6,617,654 5,117,654
Co., Ltd. long-term holding
Shanghai Longchang Lifting
Equipment Co., Ltd. (formerly
known as: ZPMC Longchang Lifting Strategic investment,
697,422 42,393 739,815 60,184
Equipment Co., Ltd.; Shanghai long-term holding
Zhenhua Port Machinery (Group)
Longchang Lift Equipment Co. Ltd.)
21st Century Science and Technology Strategic investment,
30,000,000
Investment Co., Ltd. long-term holding
Total 73,475,619 18,790,000 13,300,382 706,627 104,859,374 335,790 43,135,399 30,060,184 /
(2). Derecognition in the current period
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
ANNUAL REPORT 2023
Section X Financial Report
19. Other non-current financial assets
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
20. Investment properties
Measurement model of investment properties
(1). Investment properties with cost measurement mode
Unit: Yuan Currency: CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original book value
1. Balance as at December 31, 2022 555,622,992 209,845,794 765,468,786
2. Increase in current period
(1) Outsourcing
(2) Transfer-in of inventories, fixed 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, 2023 555,622,992 209,845,794 765,468,786
II. Accumulative depreciation and amortization
1. Balance as at December 31, 2022 245,696,668 82,277,983 327,974,651
2. Increase in current period 17,174,473 5,388,234 22,562,707
(1) Provision or amortization 17,174,473 5,388,234 22,562,707
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2023 262,871,141 87,666,217 350,537,358
III. 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 period 292,751,851 122,179,577 414,931,428
2. Book value at the beginning of the period 309,926,324 127,567,811 437,494,135
(2). Investment property without certificate of title
Applicable √ Not Applicable
(3). Impairment test of investment properties using cost measurement model
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
ANNUAL REPORT 2023
21. Fixed assets
Item presentation
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
Fixed assets
(1). Particulars about fixed assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Office and Transportation
Buildings and Machinery
Item electronic facilities Ship Total
constructions equipment
equipment (Excluding ship)
I. Original book value
1. Balance as at December 31, 2022 11,351,333,991 7,169,779,666 354,710,027 242,307,024 17,021,873,831 36,140,004,539
2. Increase in current period 218,248,239 229,803,715 19,737,941 16,976,788 118,705,841 603,472,524
(1) Purchase 44,892,141 142,114,789 18,236,838 16,976,788 36,739,513 258,960,069
(2) Transfer-in of construction in
173,356,098 86,515,214 1,107,729 13,481,579 274,460,620
progress
(3) Increase in business combination
(4) Exchange rate changes 1,173,712 393,374 68,484,749 70,051,835
3. Decrease in current period 28,965,274 267,986,481 15,933,939 21,416,853 94,784,341 429,086,888
(1) Disposal or scrap 28,965,274 267,986,481 15,933,939 21,416,853 94,784,341 429,086,888
4. Balance as at December 31, 2023 11,540,616,956 7,131,596,900 358,514,029 237,866,959 17,045,795,331 36,314,390,175
II. Accumulated depreciation
1. Balance as at December 31, 2022 4,971,080,154 5,633,512,574 246,225,256 166,126,180 4,459,947,345 15,476,891,509
2. Increase in current period 367,397,563 221,791,577 35,798,816 12,947,638 605,819,355 1,243,754,949
(1) Provision 367,397,563 220,730,577 35,605,132 12,947,638 594,502,533 1,231,183,443
(2) Exchange rate changes 1,061,000 193,684 11,316,822 12,571,506
3. Decrease in current period 14,708,732 261,852,509 16,158,970 18,274,185 86,144,234 397,138,630
(1) Disposal or scrap 14,708,732 261,852,509 16,158,970 18,274,185 86,144,234 397,138,630
4. Balance as at December 31, 2023 5,323,768,985 5,593,451,642 265,865,102 160,799,633 4,979,622,466 16,323,507,828
III. 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 period 6,216,847,971 1,538,145,258 92,648,927 77,067,326 12,066,172,865 19,990,882,347
2. Book value at the beginning of the
6,380,253,837 1,536,267,092 108,484,771 76,180,844 12,561,926,486 20,663,113,030
period
(2). Temporary idle fixed assets
Applicable √ Not Applicable
(3). Fixed assets leased out through operating lease
√ Applicable Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Item Book value at the end of the period
Vessel 3,059,506,943
(4). Fixed assets without certificate of title
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Book value Reasons for pending certificate of title
Buildings and constructions 131,544,590 Related procedures are still in process
(5). Impairment test of fixed assets
Applicable √ Not Applicable
Other description:
√ Applicable Not Applicable
As at December 31, 2023, the following fixed assets were taken as loan mortgage:
Borrowings
Original price Book value
Nature Amount
Vessel 2,869,401,270 2,447,188,251 Long-term payables 1,450,784,119
As at December 31, 2022, the following fixed assets were taken as loan mortgage:
Borrowings
Original price Book value
Nature Amount
Vessel 2,784,670,690 2,463,807,041 Long-term payables 1,658,661,470
As at December 31, 2023 and December 31, 2022, the book values of fixed assets for operating lease were as follows:
Ship Total
Original price
Balance at the beginning of the current year 3,467,218,000 3,467,218,000
Balance at the end of the current year 3,467,218,000 3,467,218,000
Accumulated depreciation
Balance 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 value
At the end of 2023 3,059,506,943 3,059,506,943
At the beginning of 2023 3,191,261,227 3,191,261,227
As at December 31, 2023, the fixed assets with pending certificate of title were as follows:
Book value Reasons for pending certificate of title
Buildings and constructions 131,544,590 Related procedures are still in process
Liquidation of fixed assets
Applicable √ Not Applicable
22. Construction in progress
Item presentation
Applicable √ Not Applicable
ANNUAL REPORT 2023
Other description:
Applicable √ Not Applicable
Construction in progress
(1). Particulars about construction in progress
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Project Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Large machinery and engineering equipment of
4,835,173,386 4,835,173,386 4,541,537,285 4,541,537,285
the base under construction
Large mechanical reconstruction and upgrading
152,526,447 152,526,447 23,250,608 23,250,608
project
Infrastructure construction of Changxing Base 150,003,066 150,003,066 127,496,938 127,496,938
Infrastructure construction of Nantong Base 46,772,645 46,772,645 145,778,657 145,778,657
Infrastructure construction of Nanhui Base 44,990 44,990 750,564 750,564
Total 5,184,520,534 5,184,520,534 4,838,814,052 4,838,814,052
(2). Changes of major construction in progress
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount
Other Proportion of Including: Capitalization
transferred Cumulative
Increase in decreases cumulative capitalization rate for the
December into fixed December Construction amount Fund
Project Budget the current in the project of the interest interest in
31, 2022 assets in 31, 2023 progress of interest source
period current investment in the current the current
the current capitalized
period in budget (%) period period (%)
period
Infrastructure
Self-owned
construction of 8,262,896,771 145,778,659 42,361,673 141,367,687 46,772,645 85 85
funds
Nantong Base
Infrastructure Self-owned
construction of 9,109,560,500 127,496,938 24,091,633 1,585,505 150,003,066 80 80 23,531,836 funds and
Changxing Base bank loans
Large machinery
and engineering Self-owned
equipment of 11,668,733,390 4,541,537,282 414,492,276 113,283,739 7,572,433 4,835,173,386 86 86 335,694,148 14,254,456 2.15 funds and
the base under bank loans
construction
Infrastructure
Self-owned
construction of 562,287,425 750,565 563,977 1,269,552 44,990 88 88
funds
Nanhui Base
Large mechanical
Self-owned
reconstruction and 2,763,256,710 23,250,608 146,229,976 16,954,137 152,526,447 67 67
funds
upgrading project
Total 32,366,734,796 4,838,814,052 627,739,535 274,460,620 7,572,433 5,184,520,534 / / 359,225,984 14,254,456 / /
(3). Provision for impairment of construction in progress in the current period
Applicable √ Not Applicable
(4). Impairment test of constructions in progress
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
Engineering 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 Applicable
Other 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 Applicable
Other description
None
25. Right-of-use assets
(1). Right-of-use assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Buildings and
Item Other equipment Total
constructions
I. Original book value
1. Balance as at December 31, 2022 31,335,535 3,619,846 34,955,381
2. Increase in current period 67,114,955 152,400 67,267,355
3. Decrease in current period 13,589,860 13,589,860
4. Balance as at December 31, 2023 84,860,630 3,772,246 88,632,876
II. Accumulated depreciation
1. Balance as at December 31, 2022 20,030,694 2,993,236 23,023,930
2. Increase in current period 16,066,291 502,335 16,568,626
(1) Provision 16,066,291 502,335 16,568,626
3. Decrease in current period 13,589,860 13,589,860
(1) Disposal 13,589,860 13,589,860
4. Balance as at December 31, 2023 22,507,125 3,495,571 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 REPORT 2023
Buildings and
Item Other equipment Total
constructions
(1) Disposal
4. Balance as at December 31, 2023
IV. Book value
1. Book value at the end of the period 62,353,505 276,675 62,630,180
2. Book value at the beginning of the period 11,304,841 626,610 11,931,451
(2). Impairment test of right-of-use assets
Applicable √ Not Applicable
Other description:
None
26. Intangible assets
(1). Particulars about intangible assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Land use Software use Proprietary
Item Patent right PPP project Total
right fee technology
I. Original book value
1. Balance as at December 31, 2022 4,208,638,496 104,779,496 65,296,171 375,142,803 4,753,856,966
2. Increase in current period 21,058,386 665,181,591 686,239,977
(1) Purchase 13,485,953 665,181,591 678,667,544
(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 period 60,711,874 447,735 61,159,609
(1) Disposal 60,711,874 447,735 61,159,609
4. Balance as at December 31, 2023 4,147,926,622 125,390,147 65,296,171 1,040,324,394 5,378,937,334
II. Accumulated amortization
1. Balance as at December 31, 2022 1,062,905,984 71,911,404 65,201,807 1,200,019,195
2. Increase in current period 86,032,272 12,245,701 98,277,973
(1) Provision 86,032,272 12,245,701 98,277,973
3. Decrease in current period 12,778,922 12,778,922
(1) Disposal 12,778,922 12,778,922
4. Balance as at December 31, 2023 1,136,159,334 84,157,105 65,201,807 1,285,518,246
III. 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 period 3,011,767,288 41,233,042 94,364 1,040,324,394 4,093,419,088
2. Book value at the beginning of the period 3,145,732,512 32,868,092 94,364 375,142,803 3,553,837,771
Remark 1: This item represents the portion that recognizes the consideration amount or the recognized construction revenue amount of relevant PPP
project assets as intangible assets in accordance with the requirements of “Interpretation of Accounting Standards for Business Enterprises No. 14”, and the
contract assets recognized during the relevant construction period should be presented in the “Intangible assets” item in the balance sheet. As of December
31, 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 technology
research and development expenses are not capitalized.
(2). Land use right without certificate of title
Applicable √ Not Applicable
(3). Impairment test of intangible assets
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
27. Goodwill
(1). Original book value of goodwill
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Decrease in current
Increase in current period
Name of the invested entity or the matters December 31, period December 31,
forming goodwill 2022 Formed by business 2023
Other Disposal Other
combination
ZPMC Qidong Marine Engineering Co., Ltd. 149,212,956 149,212,956
Verspannen B.V. 5,412,807 5,412,807
Greenland Heavy lift (Hong Kong) Limited 113,619,930 1,926,674 115,546,604
Total 268,245,693 1,926,674 270,172,367
(2). Provision for impairment of goodwill
Applicable √ Not Applicable
(3). Information about the asset group or portfolio of the goodwill
Applicable √ Not Applicable
Changes in asset group or combination of asset groups
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
(4). Specific 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 Applicable
The recoverable amount is determined based on the present value of expected future cash flows
Applicable √ Not Applicable
Reasons for discrepancies between the foregoing information and the information used in impairment test in previous
years or external information
Applicable √ Not Applicable
Reasons for discrepancies between the information used in impairment test in previous years by the Company and the
actual conditions of the current year
Applicable √ Not Applicable
ANNUAL REPORT 2023
(5). Performance commitment and corresponding goodwill impairment
There is a performance commitment when goodwill is formed and the reporting period or the period before the
reporting period is within the performance commitment period
Applicable √ Not Applicable
Other description
√ Applicable Not Applicable
Remark 1: The decrease in the current year was caused by the translation differences of foreign currency statement.
As at December 31, 2023, the Group had no provision for the impairment of goodwill. When the impairment test is
conducted, the book value of goodwill is amortized to the asset group portfolio expected to benefit from the synergistic
effect of business combination.
The goodwill acquired through business combination has been distributed to the following asset groups for impairment
test:
Heavy equipment asset group
Semi-submerged ship transport assets group of Greenland Heavylift (Hongkong) Limited (GHHL)
Heavy equipment asset group
The heavy equipment asset portfolio is mainly composed of various types of heavy equipment produced in collaboration
by various production bases, which is consistent with the combination of asset groups determined by the impairment
test of previous years. The beneficiary of the synergy effect 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 difficult to allocate to
each asset group, so the goodwill is allocated to the combination of asset groups of heavy equipment. The recoverable
amount of heavy equipment asset group is measured based on the five-year budget approved by the management
and shall be measured with cash flow forecast method. Cash flow over 5-year period shall be calculated based on the
estimated growth rate.
The main assumptions of the future cash flow discount method:
Growth rate during forecast period 8.87%-17.09%
Perpetual growth rate 2.30%
Gross profit rate 14.06%-15.53%
Pre-tax discount rate 12.72%
GHHL semi-submerged ship transport assets group
The 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 of
previous years. The recoverable amount is determined based on the expected future cash flow of the combination of
asset group, and the expected future cash flow is determined according to the cash flow forecast based on the transport
service contract revenue expected to be obtained within the service life of vessel.
The main assumptions of the future cash flow discount method:
Number of customized short-distance and long-distance transport service
4/year/vessel
contracts expected to be obtained
Vessel utilization rate of general charter party 62.15%-84.66%
Charter rate of general charter party USD 60,000/day
Pre-tax discount rate 11.00%
The distributions of the book value of goodwill to asset groups are as follows:
Heavy equipment asset group CHHL semi-submerged ship transport assets group Total
2023 2022 2023 2022 2023 2022
Book amount of goodwill 154,625,763 154,625,763 115,546,604 113,619,930 270,172,367 268,245,693
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 budget
gross profit rate and adopts the pretax interest rate which can reflect the specific risk of relevant asset group portfolio as
the 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: CNY
Increase in the Amortization in the
Item December 31, 2022 Other decreases December 31, 2023
current period current period
Improvement expenditure of fixed
409,870 685,354 39,241 1,055,983
assets under operating lease
Total 409,870 685,354 39,241 1,055,983
Other description:
None
29. Deferred income tax assets/liabilities
(1). Deferred income tax assets before offsetting
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for impairment of assets 3,507,168,898 528,354,728 3,091,053,227 457,057,874
Unrealized profits of internal transactions 99,413,440 14,912,016 184,945,333 27,741,800
Estimated liabilities 147,187,314 22,078,097 146,025,378 21,903,807
Wages and salaries unpaid 29,335,075 4,400,261 29,183,742 4,377,561
Interest unpaid 16,042,710 2,406,407 27,094,840 4,064,225
Deductible loss 2,374,214,264 356,132,140 2,602,902,080 390,435,312
Unrealized contract gross profit 42,585,456 6,387,818 81,347,551 12,202,133
Lease liabilities 88,632,876 13,294,931 34,955,380 5,243,307
Total 6,304,580,033 947,966,398 6,197,507,531 923,026,019
(2). Deferred income tax liabilities before offsetting
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Depreciation of fixed assets 826,801,337 130,266,550 598,916,493 98,420,429
Changes in fair value of held-for-trading financial assets 168,131,787 25,219,768 217,813,738 32,716,168
Changes in fair value of other equity instruments 45,075,214 6,761,282 30,481,459 4,572,219
Valuation of enterprise combination assets not under the
79,981,605 11,997,241 89,156,113 13,373,417
same control
Right-of-use assets 88,632,876 13,294,931 34,955,380 5,243,307
Total 1,208,622,819 187,539,772 971,323,183 154,325,540
ANNUAL REPORT 2023
(3). Deferred income tax assets or liabilities presented by net amount after offset
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Offset amount of Balance of deferred income Offset amount of deferred Balance of deferred income
deferred income tax tax assets and liabilities income tax assets and tax assets and liabilities
Item
assets and liabilities at after offset at the end of liabilities at the beginning after offset at the beginning
the end of the period the period of the period of the period
Deferred income tax assets 54,267,502 893,698,896 55,084,568 867,941,451
Deferred income tax liabilities 54,267,502 133,272,270 55,084,568 99,240,972
(4). Details of unrecognized deferred income tax assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Deductible temporary differences 810,029,865 737,902,172
Deductible losses 1,202,607,348 1,419,947,439
Total 2,012,637,213 2,157,849,611
(5). The deductible losses on the unrecognized deferred income tax assets will become due in the following years
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Year December 31, 2023 December 31, 2022 Remark
2023 373,743,427
2024 230,620,753 244,363,628
2025 264,416,621 304,004,857
2026 270,525,356 271,098,107
2027 226,737,420 226,737,420
2028 210,307,198
Total 1,202,607,348 1,419,947,439 /
Other description:
Applicable √ Not Applicable
30. Other non-current assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
PPP projects completed but not settled 4,095,504,922 4,095,504,922 3,710,497,198 3,710,497,198
Contract warranty balance receivable 888,075,904 59,009,205 829,066,699 526,801,140 25,018,867 501,782,273
Advance payment for buildings 33,781,740 33,781,740
Total 4,983,580,826 59,009,205 4,924,571,621 4,271,080,078 25,018,867 4,246,061,211
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-term
borrowings 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 Report
Balance at the beginning of Balance at the end of the
Provision in the current year Reversal in the current year
the current year current year
2023 25,018,867 54,323,860 (20,333,522) 59,009,205
2022 37,855,051 23,662,840 (36,499,024) 25,018,867
31. Assets with ownership or use rights restricted
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Item Restriction Restriction
Book balance Book value Restriction Book balance Book value Restriction
type type
Other non-
3,616,427,706 3,616,427,706 Pledge Pledged borrowings 3,572,872,352 3,572,872,352 Pledge Pledged borrowings
current assets
Fixed assets 2,869,401,270 2,447,188,251 Mortgage Mortgage borrowings 2,784,670,690 2,463,807,041 Mortgage Mortgage borrowings
Long-term
1,435,459,418 1,435,459,418 Pledge Pledged borrowings 2,212,190,758 2,212,190,758 Pledge Pledged borrowings
receivables
Intangible assets 1,024,431,906 1,024,431,906 Pledge Pledged borrowings
Accounts
254,958,240 254,958,240 Pledge Pledged borrowings 191,217,707 191,217,707 Pledge Pledged borrowings
receivable
Contract assets 146,326,607 146,326,607 Pledge Pledged borrowings 133,406,311 133,406,311 Pledge Pledged borrowings
Special fund, L/C Special fund, L/C
deposits, L/G deposits, deposits, L/G deposits,
Monetary funds 72,908,531 72,908,531 Margin 21,946,276 21,946,276 Margin
etc. in the overseas etc. in the overseas
supervision account supervision account
Total 9,419,913,678 8,997,700,659 / / 8,916,304,094 8,595,440,445 / /
Other description: None
32. Short-term borrowings
(1). Classification of short-term borrowings
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Pledged borrowings
Mortgage borrowings
Guaranteed borrowings
Fiduciary borrowings 4,781,640,779 1,793,682,952
Total 4,781,640,779 1,793,682,952
Description of the classification of short-term borrowings: None
(2). Overdue outstanding short-term borrowings
Applicable √ Not Applicable
The important overdue outstanding short-term borrowings are as follows:
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
33. Held-for-trading financial liabilities
Applicable √ Not Applicable
ANNUAL REPORT 2023
Other description
Applicable √ Not Applicable
34. Derivative financial liabilities
Applicable √ Not Applicable
35. Notes payable
(1). Presentation of notes payable
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Type December 31, 2023 December 31, 2022
Commercial acceptance bill
Bank acceptance bill 5,533,470,582 5,401,258,897
Total 5,533,470,582 5,401,258,897
The 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
Item December 31, 2023 December 31, 2022
Payables for material purchase and product manufacturing 7,509,905,442 6,615,263,016
Infrastructure payables 627,800,506 168,623,915
Quality guarantee deposit payable 348,169,253 336,129,389
Equipment and vessel purchase payables 126,146,515 130,110,242
Port charge payable 4,037,422 4,996,772
Total 8,616,059,138 7,255,123,334
(2). Important accounts payable with the aging over 1 year or overdue
Applicable √ Not Applicable
Other description
√ Applicable Not Applicable
As 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 significant changes in book value during the reporting period
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
Section X Financial Report
38. Contract liabilities
(1). Particulars about contract liabilities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Advances from customers for goods 17,729,437,720 12,890,180,046
Amount settled for uncompleted work 1,501,211,476 457,970,151
Total 19,230,649,196 13,348,150,197
(2). Significant contractual liability with the aging over more than 1 year
Applicable √ Not Applicable
(3). Amount of and reason for significant changes in book value during the reporting period
Applicable √ Not Applicable
Other description
√ Applicable Not Applicable
In 2023, there were no important contract liabilities with the aging over 1 year (2022: nil). The increase in the balance of
contract liabilities at the end of this year was due to the increase in advance payments for products received but not yet
delivered.
39. Payroll payable
(1). Presentation of payroll payable
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 Increase in current period Decrease in current period December 31, 2023
I. Short-term compensation 38,074,154 2,165,912,040 2,163,888,801 40,097,393
II. Post-employment benefits - defined
343,402,784 343,402,784
contribution plans
III. Dismissal benefits
IV. Other benefits due within one year
Total 38,074,154 2,509,314,824 2,507,291,585 40,097,393
(2). Presentation of short-term compensation
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31, 2022 December 31, 2023
period period
I. Salaries, bonuses, allowances and subsidies 1,736,679,152 1,736,679,152
II. Employee welfare 83,675,744 83,675,744
III. Social insurance premium 151,858,187 151,858,187
Including: medical insurance premium 130,658,631 130,658,631
Work-related injury insurance premium 9,685,709 9,685,709
Maternity insurance premium 11,513,847 11,513,847
IV. Housing provident funds 6,076 156,485,380 156,490,983 473
V. Union expenditures and employee education expenses 38,068,078 34,922,712 32,893,870 40,096,920
VI. Short-term paid absence
VII. Short-term profit sharing plan
VIII. Other short-term compensation 2,290,865 2,290,865
Total 38,074,154 2,165,912,040 2,163,888,801 40,097,393
ANNUAL REPORT 2023
(3). Presentation of defined contribution plans
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31, 2022 December 31, 2023
period period
1. Basic endowment insurance premium 228,871,846 228,871,846
2. Unemployment insurance premium 7,150,222 7,150,222
3. Enterprise annuity payment
4. Supplementary endowment insurance premium 107,380,716 107,380,716
Total 343,402,784 343,402,784
Other description:
Applicable √ Not Applicable
40. Tax payable
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
VAT 128,853,878 68,911,314
Consumption tax
Sales tax
Enterprise income tax 47,342,318 64,624,716
Individual income tax 20,428,867 21,435,047
Urban maintenance and construction tax 61,251,495 33,026,021
Education surtax 44,474,506 24,265,964
Others 22,290,070 25,840,813
Total 324,641,134 238,103,875
Other description:
None
41. Other payables
(1). Item presentation
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Interest payable
Dividends payable 6,593 6,593
Other payables 1,021,369,667 1,314,681,722
Total 1,021,376,260 1,314,688,315
Other description:
Applicable √ Not Applicable
(2). Interest payable
Presentation by category
Applicable √ Not Applicable
Overdue significant 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: CNY
Item December 31, 2023 December 31, 2022
Common stock dividends
Preferred stock/perpetual debt dividends classified as equity instruments
Preferred stock/perpetual debt dividends-XXX
Preferred stock/perpetual debt dividends-XXX
Dividends payable -XXX
Dividends payable - Macau Zhenhua Harbour Construction Co., Ltd. 6,593 6,593
Total 6,593 6,593
Other explanations, including important dividends payable that have not been paid for more than one year, the reasons
for 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 at
December 31, 2022: RMB 6,593) was that the shareholders of the Company had not requested for actual payment by the
Group.
(4). Other payables
Other payables presented by nature
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Engineering deposit and quality guarantee deposit 382,408,621 355,583,851
Customer collection under asset-backed special program 259,786,783 611,100,377
Amounts due to related parties 125,184,859 14,907,689
Special payables 14,963,440 14,963,440
Others 239,025,964 318,126,365
Total 1,021,369,667 1,314,681,722
Other important payables with the aging over 1 year or overdue
Applicable √ Not Applicable
Other description:
√ Applicable Not Applicable
Aging analysis of other payables is as follows:
2023 2022
Amount Proportion % Amount Proportion %
Within 1 year 905,317,709 89 1,202,456,256 91
Over 1 year 116,051,958 11 112,225,466 9
Total 1,021,369,667 100 1,314,681,722 100
As at December 31, 2023, there were no other significant payables aged over 1 year or overdue.
42. Liabilities held for sale
Applicable √ Not Applicable
ANNUAL REPORT 2023
43. Non-current liabilities due within one year
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Long-term borrowings due within one year 8,479,586,192 6,543,553,353
Bonds payable due within one year
Long-term payables due within one year 141,133,271 413,188,297
Lease liabilities due within one year 29,980,926 4,703,568
Total 8,650,700,389 6,961,445,218
Other description: None
44. Other current liabilities
Other current liabilities
Applicable √ Not Applicable
Increase or decrease of short-term bonds payable:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
45. Long-term borrowings
(1). Classification of long-term borrowings
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Pledged borrowings 3,142,068,341 2,469,639,584
Mortgage borrowings
Guaranteed borrowings
Fiduciary borrowings 20,442,741,930 25,093,486,415
Less: Long-term borrowings due within one year
Fiduciary borrowings -8,192,403,215 -6,152,492,930
Pledged borrowings -287,182,977 -391,060,423
Total 15,105,224,079 21,019,572,646
Description of the classification of long-term borrowings:
None
Other description:
√ Applicable Not Applicable
As at December 31, 2023, the annual interest rate on the aforesaid borrowings ranges from 1.20% to 4.4% (as at December
31, 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 at
December 31, 2022: RMB 2,469,639,584) took the long-term accounts receivable, other non-current assets, contract assets
and accounts receivable of the PPP projects of the Group as pledge. See VII (16), VII (30), VII (6) and VII (5). The interest shall
be 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 classified as financial liabilities)
Applicable √ Not Applicable
(3). Explanation of convertible corporate bonds
Applicable √ Not Applicable
Accounting treatment and judgment basis for equity transfer
Applicable √ Not Applicable
(4). Description of other financial instruments classified as financial liabilities
Basic information of outstanding preferred shares, perpetual bonds and other financial instruments at the end of the
period
Applicable √ Not Applicable
Changes in outstanding preferred shares, perpetual bonds and other financial instruments at the end of the period
Applicable √ Not Applicable
Description of the basis for classifying other financial instruments as financial liabilities:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
47. Lease liabilities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Buildings and constructions 61,251,331 11,634,161
Other equipment 277,779 746,114
Less: Lease liabilities due within one year
Buildings and constructions 29,931,702 3,996,022
Other equipment 49,224 707,546
Total 31,548,184 7,676,707
Other description:
None
48. Long-term payables
Item presentation
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Long-term payables 1,744,502,983 1,931,340,734
Special payables
Total 1,744,502,983 1,931,340,734
ANNUAL REPORT 2023
Other description:
√ Applicable Not Applicable
2023 2022
Leaseback financing fund (i) 1,450,784,119 1,658,661,470
Ship purchase payable - 208,938,000
“Building - transfer” and PPP project fund (ii) 262,957,217 243,811,149
Project quality guarantee deposit 171,894,918 233,118,412
Less: Leaseback financing fund due within one year 141,133,271 413,188,297
Total 1,744,502,983 1,931,340,734
(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 financial leasing company, with the maturity date from January 24, 2024 to July 24, 2033 (as at
December 31, 2022: from January 24, 2023 to July 24, 2033). The Group will pay the leaseback financing fund on schedule
each year to the financial leasing company in accordance with the contract terms. The Group takes the above series of
transactions 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 payments
would be paid to the construction party after the final acceptance of the “building-transfer” project within a certain term.
Long-term payables
(1). Presentation of long-term payables by nature
Applicable √ Not Applicable
Special 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
Item December 31, 2022 December 31, 2023 Causes
External guarantee
Pending litigation
Product quality guarantee deposit
Restructuring obligations
Loss contracts to be executed
Refund payable
Others
Estimated after-sale service cost 168,241,316 168,217,597
Total 168,241,316 168,217,597 /
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, which
makes provision for estimated liabilities in accordance with the budget amount when the products are sold, and reduces
the 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
Increase in current Decrease in current
Item December 31, 2022 December 31, 2023 Causes
period period
Government subsidies 298,502,179 65,409,616 27,774,014 336,137,781
Land compensation 33,917,201 1,000,000 32,917,201
Total 332,419,380 65,409,616 28,774,014 369,054,982 /
Other description:
√ Applicable Not Applicable
Among the above government subsidies, some projects are government subsidies related to assets, and the rest are
related to income.
Land compensation refers to the land compensation acquired by a subsidiary of the Company, which shall be amortized
over the 50 years’ land use term.
52. Other non-current liabilities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Contract liabilities
Output tax to be carried forward 247,185,330 181,805,207
Total 247,185,330 181,805,207
Other description:
On balance sheet date, the revenue of some construction contracts and interest income of “building-transfer” projects of
the Company had not reached the time point of the VAT liability.
53. Share capital
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase/decrease (+/-)
December 31, 2022 New shares Housing fund December 31, 2023
Share donation Others Sub-total
issued Conversion into shares
Total shares 5,268,353,501 5,268,353,501
Other description:
2023
Increase/decrease in the current year
Beginning balance New shares Stock Common reserves Ending balance
Other Sub-total
issued dividend capitalizing
Shares without trading
limited conditions
- RMB ordinary shares 3,321,997,661 - - - - - 3,321,997,661
- Foreign shares listed
1,946,355,840 - - - - - 1,946,355,840
domestically
Total 5,268,353,501 - - - - - 5,268,353,501
ANNUAL REPORT 2023
2022
Increase/decrease in the current year
Beginning balance New shares Stock Common reserves Ending balance
Other Sub-total
issued dividend capitalizing
Shares without trading
limited conditions
- RMB ordinary shares 3,321,997,661 - - - - - 3,321,997,661
- Foreign shares listed
1,946,355,840 - - - - - 1,946,355,840
domestically
Total 5,268,353,501 - - - - - 5,268,353,501
54. Other equity instruments
(1). Basic information of outstanding preferred shares, perpetual bonds and other financial instruments at the end of the
period
Applicable √ Not Applicable
(2). Changes in outstanding preferred shares, perpetual bonds and other financial instruments at the end of the period
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Beginning Ending
Outstanding financial instruments period period
Amount Book value Amount Book value Amount Book value Amount Book value
Shanghai Zhenhua Heavy Industries
Co., Ltd. 2022 medium-term notes 5,000,000 500,000,000 5,000,000 500,000,000
series I
Total 5,000,000 500,000,000 5,000,000 500,000,000
Description of the increase and decrease of other equity instruments in the current period, reasons for changes, and basis
for relevant accounting treatment:
Applicable √ Not Applicable
Other description:
√ Applicable Not Applicable
The Group issued the perpetual notes on August 24, 2022, with a term of 3+N (3) years, which will survive for a long time
before the Group redeems in accordance with the terms of issue, and will mature when the issuer redeems in accordance
with 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 contractual
obligation to repay the principal or pay any interest free of charge. Except for compulsory interest payment, on each
interest payment date of medium-term notes, the Group may, at its own option, postpone the payment of current interest
and all deferred interest and its fruits in accordance with this clause to the next interest payment date, and is not limited
by the number of deferred interest payments. On the reset date of the coupon rate of medium-term notes, the Company
has the right to redeem the medium-term notes at face value plus interest payable (including all deferred interest
payments). The Group deems that the notes do not meet the definition of financial liabilities and therefore classifies it as
other equity instruments.
55. Capital reserves
√ Applicable Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31, 2022 December 31, 2023
period period
Share premium 4,537,774,553 4,537,774,553
Other equity changes in investees accounted for by
19,561,335 -19,561,335
the equity method
Business combination under common control -16,203,111 -16,203,111
Purchase of minority interest 6,950,038 6,950,038
Absorption of minority shareholders’ investments by
185,934,674 59,636,398 245,571,072
subsidiaries
Transfer-in of capital reserves under the original
128,059,561 128,059,561
system
Total 4,842,515,715 59,636,398 19,561,335 4,882,590,778
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
Amount incurred in the current period
Less: amount Less: amount
previously previously
included in included in
December Attributable December
Item the other the other Attributable to
31, 2022 Pre-tax Less: to the parent 31, 2023
comprehensive comprehensive the minority
amount income tax company
income and income and equity after tax
after tax
currently currently
transferred to transferred to
the profit or loss retained earnings
I. Other comprehensive income that can’t be
-4,090,759 12,593,755 1,889,063 10,704,692 6,613,933
reclassified into profit and loss
Including: Remeasure the variation of net
indebtedness or net asset of defined benefit
plan
Other comprehensive income that
can't be reclassified into profit and
loss in the invested enterprise under
equity method
Fair value change of other equity
-4,090,759 12,593,755 1,889,063 10,704,692 6,613,933
instrument investments
Fair value change of enterprise credit
risks
II. Other comprehensive income that will be
28,956,746 34,720,674 23,429,623 11,291,051 52,386,369
reclassified into profit and loss
Including: Other comprehensive income that
will be reclassified into profit and loss under -6,513,064 -718,408 -718,408 -7,231,472
equity method
Fair value change of other debt
investments
Amount of financial assets reclassified
into other comprehensive income
Provision for credit impairment of
other debt investments
Cash flow hedging reserve
Translation reserve 35,469,810 35,439,082 24,148,031 11,291,051 59,617,841
Total other comprehensive income 24,865,987 47,314,429 1,889,063 34,134,315 11,291,051 59,000,302
ANNUAL REPORT 2023
Other description, including the adjustment of the initial recognition amount of the effective part of profit or loss of cash
flow hedging converted into the hedged item:
None
58. Special reserves
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 Increase in current Bperiod Decrease in current period December 31, 2023
Work safety expenses 2,945,560 76,585,293 69,005,759 10,525,094
Total 2,945,560 76,585,293 69,005,759 10,525,094
Other 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 Safety
Expenses”, the enterprises engaged in large-scale machinery manufacture and engineering construction shall withdraw
the work safety expenses according to the standards. The increase or decrease in current year was the work safety
expenses withdrawn and used by the Group for the reporting year in accordance with relevant requirements.
59. Surplus reserves
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 Increase in current period Decrease in current period December 31, 2023
Statutory surplus reserves 1,411,540,008 7,386,369 1,418,926,377
Discretionary surplus reserves 292,378,668 292,378,668
Reserve fund
Enterprise development fund
Others
Total 1,703,918,676 7,386,369 1,711,305,045
Description 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 the
resolutions of the Board of Directors, the Company withdrew 10% of its net profit as statutory surplus reserves. When the
accumulated amount of statutory surplus reserves reaches 50% or more of the share capital, the Company can stop the
withdrawal.
The statutory surplus reserves can be used to compensate loss upon approval, or to increase share capital. The statutory
surplus reserves withdrawn by the Company amounted to RMB 7,386,369 in 2023 (2022: RMB 24,660,180).
60. Undistributed profits
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Current period Previous period
Undistributed profits at the end of previous period before adjustment 2,825,870,678 2,767,511,301
Total undistributed profits at the beginning of the adjustment period (increase +, decrease -)
Undistributed profits at the beginning of the period after adjustment 2,825,870,678 2,767,511,301
Plus: Net profit attributable to owners of the parent company 519,978,765 371,937,232
Less: withdrawal of statutory surplus reserves 7,386,369 24,660,180
Withdrawal of discretionary surplus reserve
Withdrawal of general risk preparation
Section X Financial Report
Item Current period Previous period
Common stock dividends payable
Common stock dividends converted to share capital
Distribution of cash dividends on common stock 263,417,675
Distribution of interest on the perpetual medium-term notes 13,685,000 25,500,000
Undistributed profits at the end of the period 3,324,778,074 2,825,870,678
Details of undistributed profit at the beginning of adjustment period:
1. Due to the retroactive adjustment of “Accounting Standards for Business Enterprises” and related new regulations, the
impact on undistributed profits at the beginning of the period was RMB 0.
2. The impact of changes in accounting policies on undistributed profits at the beginning of the period was RMB 0.
3. The impact of correction of major accounting errors on undistributed profits at the beginning of the period was RMB 0.
4. The impact of change of consolidation scope caused by the common control on undistributed profits at the beginning
of the period was RMB 0.
5. The total impacts of other adjustment on undistributed profits 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: CNY
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 32,742,292,225 28,407,567,714 30,025,614,821 26,014,865,348
Other business 190,971,577 72,818,080 166,178,166 130,566,638
Total 32,933,263,802 28,480,385,794 30,191,792,987 26,145,431,986
(2). Breakdown of operating income and operating cost
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
XXX-Division Total
Classification of Contract
Operating revenue Operating costs Operating revenue Operating costs
Type of goods
Port machinery 21,236,864,182 17,769,268,798
Heavy equipment 5,422,715,054 5,139,018,033
Steel structures and related revenue 3,166,048,520 2,883,527,923
Engineering construction projects 1,528,578,218 1,551,493,106
Shipping and lifting services 1,209,116,050 875,048,926
Lease income 296,335,872 219,473,544
Sales of materials and others 73,605,906 42,555,464
By region of operation
Chinese Mainland 18,521,970,127 16,523,483,271
Asia (excluding Chinese Mainland) 6,029,644,681 4,952,941,475
North America 2,386,479,118 2,039,827,384
Africa 2,032,771,314 1,515,235,643
Europe 1,096,740,543 1,231,226,688
South America 1,183,625,912 901,491,572
Chinese Mainland (export sales) 964,530,587 746,929,906
Oceania 717,501,520 569,249,855
Market or customer type
Contract type
ANNUAL REPORT 2023
XXX-Division Total
Classification of Contract
Operating revenue Operating costs Operating revenue Operating costs
By time of goods transfer
Transfer at a certain point 23,223,967,887 19,854,414,170
Transfer within a certain period 9,709,295,915 8,625,971,624
By contract term
By sales channel
Total 32,933,263,802 28,480,385,794
Other 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 Applicable
Other description:
The revenue recognized in the current year and included in the book value of contract liabilities at the beginning of the
year is as follows:
2023 2022
Advances from customers for goods 6,537,380,834 5,392,655,435
Settled amount with unfinished construction 406,509,673 280,680,980
Total 6,943,890,507 5,673,336,415
The revenue recognized in the current year for performance obligations that have been fulfilled (or partially fulfilled) in
the previous period is as follows:
2023 2022
Steel structure and related income 2,667,439,984 807,002,969
Engineering construction projects 1,528,578,218 1,613,996,721
Total 4,196,018,202 2,420,999,690
The information related to performance obligations of the Group is as follows:
Sales of port machinery, heavy equipment and steel structure products
For the port machinery production contract that meets the performance obligations within a certain period of time, the
Group performs its performance obligations within the time of manufacturing and transferring the port machinery; for
the 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 certificate or
other relevant delivery certificates. For the heavy equipment production contract that meets the performance obligations
within a certain period of time, the Group performs its performance obligations within the time of manufacturing and
transferring the heavy equipment; for the heavy equipment production contract that does not meet the performance
obligations within a certain period of time, the Group performs its obligations when delivering heavy equipment to
customers and obtaining the handover protocol or other relevant delivery certificate. For the steel structure product
manufacturing contract that meets the performance obligations within a certain period of time, the Group performs
its performance obligations within the time of manufacturing and transferring the steel structure product; for the steel
structure product manufacturing contract that does not meet the performance obligation within a certain period of
time, the Group performs its performance obligations when the steel structure product is delivered and signed by the
owner. 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 after
the expiration of the quality guarantee period. The Group provides guaranteed warranty for the above products.
Building services
The Group performs its performance obligations within the time of providing services, and the contract price is usually
paid within 30 days after the settlement of the project. The customer usually retains a certain proportion of the quality
guarantee deposit, which is usually paid after the expiration of the quality guarantee period.
Shipping services
The Group performs its performance obligations within the time of providing transportation services. The contract price
is 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: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Consumption tax
Sales tax
Urban maintenance and construction tax 104,097,505 45,473,679
Educational surtax 76,075,161 34,681,141
Resource tax
Housing property tax 58,774,780 46,741,623
Land use tax 22,714,667 18,768,826
Vehicle and vessel use tax
Stamp duty 27,381,428 26,389,258
Others 2,256,084 2,704,930
Total 291,299,625 174,759,457
Other description: None
63. Selling and distribution expenses
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 127,513,128 145,325,870
Warehousing and transportation expenses 20,416,858 2,461,363
Travel expenses 15,943,403 9,827,870
Entertainment expenses 12,354,694 4,040,238
Regional operating expenses 11,073,494
Advertising and publicity costs 11,030,729 3,795,628
Bidding and tendering expenses 3,431,535 2,796,037
Office expenses 2,127,577 2,159,960
Sales and service fees 1,148,066 1,811,427
Other 6,321,709 4,587,271
Total 211,361,193 176,805,664
Other description: None
64. General and administrative expenses
√ Applicable Not Applicable
ANNUAL REPORT 2023
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 436,308,835 422,344,628
Amortization of intangible assets 95,551,707 90,354,954
Office expenses 59,250,407 58,616,600
Depreciation of fixed assets 41,878,893 62,513,546
Informatization expenses 39,164,783 16,683,023
Travel expenses 29,759,126 20,418,253
Expenses from employment of intermediaries 28,892,009 42,781,830
Consulting fees 24,404,406 9,903,413
Management and security fees 23,872,303 23,089,221
Management and cleaning fees 16,946,187 15,760,356
Entertainment expenses 10,800,158 5,927,002
Maintenance cost 9,487,567 3,518,407
Insurance expenses 7,466,936 6,053,437
Others 25,400,119 57,725,498
Total 849,183,436 835,690,168
Other description: None
65. Research and development expenses
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 616,931,085 560,361,835
Materials expenses 394,464,827 300,416,273
Processing expenses 172,861,680 144,441,413
Depreciation expenses 94,644,503 85,911,765
Product design expenses 2,497,150 126,214
Others 30,157,420 27,079,591
Total 1,311,556,665 1,118,337,091
Other description: None
66. Financial expenses
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Interest expenses 996,663,353 1,083,262,216
Less: Capitalized amount of interest 30,797,541 44,941,151
Less: interest income 429,793,598 413,595,714
Exchange losses/gains -44,672,150 98,700,929
Others 54,650,386 51,653,597
Total 546,050,450 775,079,877
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 Report
Unit: Yuan Currency: CNY
Classification by nature Amount incurred in the current period Amount incurred in the previous period
Fiscal appropriation 69,206,574 75,734,113
Technological subsidy 26,342,363 23,979,691
Fiscal appropriation 2,740,400 3,300,400
Land compensation 1,000,000 1,000,000
Total 99,289,337 104,014,204
Other description:
None
68. Investment income
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity investment calculated under the equity method 78,028,096 170,402,945
Investment income from disposal of long-term equity investment -95,166
Investment income from held-for-trading financial assets during the holding period 42,373,171 60,831,663
Dividend income from other equity instrument investment during holding 335,790 335,790
Interest income from debt investment during holding
Interest income from other debt investment during holding
Investment income from disposal of held-for-trading financial assets 79,113,455 5,843
Investment income from disposal of other equity instrument investment
Investment income from disposal of debt investment
Investment income from disposal of other debt investment
Income from debt restructuring
Losses on derecognition of financial assets measured at amortized cost -115,312,416 -20,135,378
Others -16,628,696 -6,986,339
Total 67,909,400 204,359,358
Other description:
The Group derecognized some financial 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: CNY
Amount incurred in the current Amount incurred in the previous
Sources of income from fair value change
period period
Held-for-trading financial assets -27,339,814 -276,050,580
Including: income from fair value change of derivative financial instruments
Held-for-trading financial liabilities
Investment property measured at fair value
Investment in listed company stocks -27,339,814 -276,050,580
Total -27,339,814 -276,050,580
ANNUAL REPORT 2023
Other description: None
71. Credit impairment loss
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Loss on bad debts of notes receivable
Loss on bad debts of accounts receivable 255,353,083 322,159,775
Loss on bad debts of other receivables 20,957,012 23,996,659
Loss on impairment of debt investment
Loss on impairment of other debt investment
Loss on bad debts of long-term receivables
Impairment loss related to financial guarantees
Loss on impairment of contract assets
Total 276,310,095 346,156,434
Other description: None
72. Assets impairment losses
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
I. Impairment loss of contract assets 135,250,939 9,832,764
II. Loss on price falling of inventory and impairment loss of
293,593,261 82,677,874
contract performance costs
III. Impairment loss of long-term equity investment
IV. Impairment loss of investment property
V. Impairment loss of fixed assets
VI. Impairment loss of engineering materials
VII. Impairment loss of construction in progress
VIII. Impairment loss of productive biological assets
IX. Impairment loss of oil and gas assets
X. Impairment loss of intangible assets
XI. Goodwill impairment loss
XII. Others
Total 428,844,200 92,510,638
Other description: None
73. Income from disposal of assets
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Income from disposal of fixed assets 79,038,662 66,186,622
Total 79,038,662 66,186,622
Other description:
None
Section X Financial Report
74. Non-operating income
Non-operating income
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the Amount included in non-recurring
Item
current period previous period profit or loss in current period
Total gains from disposal of non-current assets
Including: Gains from disposal of fixed assets
Gains from disposal of intangible assets
Gains from exchange of non-monetary assets
Accepting donations
Government grants irrelevant to daily activities 8,191,485 2,401,743 8,191,485
Revenue from insurance indemnity 1,828,986 6,501,309 1,828,986
Amercement gains 14,192,396 9,835,517 14,192,396
Others 6,031,102 13,401,038 6,031,102
Total 30,243,969 32,139,607 30,243,969
Other description:
Applicable √ Not Applicable
75. Non-operating expenditure
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the Amount included in non-recurring
Item
current period previous period profit or loss in current period
Total loss on disposal of non-current assets
Including: Loss on disposal of fixed assets
Loss on disposal of intangible assets
Loss on exchange of non-monetary assets
External donations 845,060 385,000 845,060
Overdue fine payment 468,430 1,551,733 468,430
Others 942,739 499,362 942,739
Total 2,256,229 2,436,095 2,256,229
Other description:
None
76. Income tax expenses
(1). Table of income tax expenses
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Current income tax expenses 132,228,250 130,622,921
Deferred income tax expenses 6,384,790 -72,950,481
Total 138,613,040 57,672,440
(2). Accounting profit and income tax expenses adjustment process
√ Applicable Not Applicable
ANNUAL REPORT 2023
Unit: Yuan Currency: CNY
Item Amount incurred in the current period
Total profits 785,157,669
The income tax expenses calculated based on statutory/applicable tax rates 117,773,650
Influences caused by different tax rates adopted by subsidiaries 41,354,129
Influences caused by adjustment on income tax of previous periods 6,286,247
Influences on non-taxable income
Influences caused by non-deductible cost, expenses and losses 26,399,843
Influences caused by non-confirmation of deductible losses of deferred income tax assets -22,253,408
Influences caused by non-confirmation of deductible temporary differences or deductible losses in
25,522,344
current period
Profit or loss attributable to joint ventures and associates -11,704,214
Tax-free income -6,406,344
Additional deduction of technological development expenses -38,359,207
Income tax expenses 138,613,040
Other description:
Applicable √ Not Applicable
77. Other comprehensive income
√ Applicable Not Applicable
See Note VII (57) for details.
78. Cash flow statement items
(1). Cash related to operating activities
Other cash received related to operating activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Other cash received related to operating activities
Customs deposit recovered 486,274,294 155,522,957
Cash received from government subsidies and rewards 148,812,282 70,312,363
Employee loan recovered 1,146,162 1,559,111
Cash received from the revenue from fines 14,192,396 9,835,517
Others 26,533,441 6,773,148
Total 676,958,575 244,003,096
Description of other cash received related to operating activities:
None
Other cash paid related to operating activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the current Amount incurred in the previous
Item
period period
Other cash paid related to operating activities
Customs deposit paid 350,474,800 294,392,928
Expenditures on selling and distribution expenses, general and administrative
266,807,164 361,009,064
expenses, and research and development expenses
Section X Financial Report
Amount incurred in the current Amount incurred in the previous
Item
period period
Financial expenses and handling charges 52,173,270 51,626,667
Subsidy for research and development paid to cooperative units 4,683,000 20,301,000
Others 82,883,957 69,972,683
Total 757,022,191 797,302,342
Description of other cash paid related to operating activities:
None
(2). Cash related to investment activities
Cash received related to important investment activities
Applicable √ Not Applicable
Cash paid related to important investment activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the current Amount incurred in the previous
Item
period period
Cash paid for purchase of fixed assets, constructions in progress and
746,956,678 488,778,059
intangible assets
Total 746,956,678 488,778,059
Explanation of cash paid related to important investment activities
None
Other cash received related to investing activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the current Amount incurred in the previous
Item
period period
Interest income 114,994,970 209,457,444
Total 114,994,970 209,457,444
Description of other cash received related to investing activities:
None
Other cash paid related to investing activities
Applicable √ Not Applicable
(3). Cash relating to financing activities
Other cash received relating to financing activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Other cash received relating to financing activities
Payments received from asset-backed securities business 1,015,336,873 611,100,377
Loans received from related parties 114,035,638
Leaseback payments received 4,945,820 4,696,898
Restricted bank deposits recovered 2,310,473
Total 1,134,318,331 618,107,748
ANNUAL REPORT 2023
Description of other cash received related to financing activities: None
Other cash paid related to financing activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Other cash paid related to financing activities
Repayment of collections from asset-backed securities
1,366,650,466
business
Third-party loan repaid 153,990,350 98,957,097
Related-party loan repaid 97,675,112 223,206,280
Repayment of principal of medium-term notes 500,000,000
Deposited restricted monetary funds 4,973,788
Others 19,949,071 11,207,706
Total 1,638,264,999 838,344,871
Description of other cash paid related to financing activities: None
Changes in various liabilities arising from financing activities
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase in current period Decrease in current period
December 31, December 31,
Item Non-cash Non-cash
2022 Cash changes Cash changes 2023
changes changes
Long-term loans (including long-term
27,563,125,999 7,251,082,158 11,221,602,693 7,795,193 23,584,810,271
loans due within one year)
Long-term payables - leaseback financing
(including long-term payables due within 1,658,661,470 4,945,820 36,846,587 249,669,758 1,450,784,119
one year - leaseback financing)
Lease liabilities (including lease liabilities
12,380,275 67,267,355 18,118,520 61,529,110
due within one year)
Other payables (asset-backed securities
611,100,376 1,015,336,873 1,366,650,466 259,786,783
business funds)
Other payables (minority shareholders’
114,035,638 114,035,638
loans)
Short-term borrowings 1,793,682,952 19,415,217,410 2,856,987 16,426,290,316 3,826,254 4,781,640,779
Total 31,638,951,072 27,800,617,899 106,970,929 29,282,331,753 11,621,447 30,252,586,700
(4). Explanation of cash flows presented on a net basis
Applicable √ Not Applicable
(5). Major activities and financial impacts that do not involve current cash receipts and payments but affect the Company’s
financial position or may affect the Company’s cash flows in the future
√ Applicable Not Applicable
In 2023, the Group’s endorsement transfer of bank acceptance bill received from sales of goods and rendering of services
for 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 flow statement
(1). Further information on cash flow statement
√ Applicable Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
Further information Current amount Previous amount
1. Reconciliation from net profits to cash flows from operating activities:
Net profit 646,544,629 597,562,348
Plus: provision for impairment of assets 428,844,200 92,510,638
Credit impairment loss 276,310,095 346,156,434
Depreciation of fixed assets, oil and gas assets and productive biological assets 1,253,746,150 1,173,015,684
Amortization of right-of-use assets 16,568,626 11,582,968
Amortization of intangible assets 98,317,214 93,385,465
Amortization of long-term deferred expenses
Net proceeds from disposal of fixed assets and intangible assets -79,038,662 -66,186,622
Loss on retirement of fixed assets (gains expressed with “-”)
Loss on change in fair value 27,339,814 276,050,580
Financial expenses 541,719,273 488,026,167
Investment losses (gains expressed with “-”) -199,850,512 -231,481,075
Increase of deferred income tax assets -25,757,445 -94,235,777
Increase of deferred tax liabilities 32,142,235 21,285,296
Increase of inventory -3,137,886,056 -1,108,554,285
(Increase)/decrease in operational receivable items -1,126,815,296 61,780,602
Increase of operational payables 5,763,954,705 2,585,383,305
Decrease/(increase) in construction contract amount 659,138,239 -1,678,870,361
Increase in special reserve 8,907,237 1,152,656
Others
Net cash flow from operating activities 5,184,184,446 2,568,564,023
2. Significant investment and financing activities not involving cash deposit and withdrawal:
Conversion of debt into capital
Convertible bonds due within one year
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Ending balance of cash 5,032,169,905 2,375,101,437
Less: Beginning balance of cash 2,375,101,437 4,449,837,877
Plus: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents 2,657,068,468 -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: CNY
Item December 31, 2023 December 31, 2022
I. Cash 5,032,169,905 2,375,101,437
Including: cash on hand 494,809 1,027,476
Bank deposit readily available for payment 5,031,675,096 2,374,073,961
Other monetary capital readily available for payment
Deposits with central bank available for payment
Deposits in other banks
ANNUAL REPORT 2023
Item December 31, 2023 December 31, 2022
Borrowings from other banks
II. Cash equivalents
Including: bond investment due within three months
III. Balance of cash and cash equivalents at the end of period
Including: restricted cash and cash equivalents of parent company or subsidiaries within
5,032,169,905 2,375,101,437
the Group
(5). Situations where the scope of use is limited but still presented as cash and cash equivalents
Applicable √ Not Applicable
(6). Monetary fund not classified into cash and cash equivalents
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022 Reason
Judicial frozen funds 30,861,000 3,824,971 Capital frozen
Guarantee and L/C deposit 30,848,391 16,272,632 Margin
Funds in overseas regulatory accounts 11,199,140 1,848,673 Restricted use
Total 72,908,531 21,946,276 /
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
Item Ending foreign currency balance Conversion exchange rate Ending balance, converted into RMB
Monetary funds - -
Including: USD 314,777,061 7.0827 2,229,471,490
EUR 52,818,794 7.8592 415,113,466
INR 377,614,228 0.0855 32,286,016
RUB 290,679,489 0.0803 23,341,563
ZAR 48,579,384 0.3819 18,552,467
AUD 2,957,339 4.8484 14,338,362
MYR 3,564,558 1.5415 5,494,766
AED 2,637,281 1.9326 5,096,809
GBP 479,856 9.0411 4,338,426
KRW 666,837,658 0.0055 3,667,607
SGD 216,448 5.3772 1,163,884
HKD 939,621 0.9062 851,485
SAR 267,234 1.8926 505,767
BRL 268,892 1.4658 394,142
LKR 2,839,038 0.0220 62,459
JPY 903,679 0.0502 45,365
KES 905,875 0.0453 41,036
Section X Financial Report
Item Ending foreign currency balance Conversion exchange rate Ending balance, converted into RMB
GHS 43,517 0.5969 25,975
CAD 269 5.3673 1,444
NZD 5 4.4991 22
Accounts receivable - -
Including: USD 730,962,639 7.0827 5,177,189,083
EUR 105,110,716 7.8592 826,086,139
RUB 2,072,438,961 0.0803 166,416,849
AED 50,160,285 1.9326 96,939,767
SGD 17,281,802 5.3772 92,927,706
KRW 7,081,157,603 0.0055 38,946,367
LKR 1,402,601,035 0.0220 30,857,223
GBP 3,191,666 9.0411 28,856,171
CAD 4,842,537 5.3673 25,991,349
INR 299,935,274 0.0855 25,644,466
QAR 11,629,784 1.9545 22,730,413
ZAR 54,075,114 0.3819 20,651,286
AUD 3,636,542 4.8484 17,631,410
HKD 14,634,638 0.9062 13,261,909
SAR 6,132,462 1.8926 11,606,298
MYR 3,324,265 1.5415 5,124,354
BRL 74,984 1.4658 109,912
Other receivables -
Including: USD 13,753,234 7.0827 97,410,030
RUB 124,119,943 0.0803 9,966,831
EUR 930,594 7.8592 7,313,724
ZAR 9,496,594 0.3819 3,626,749
KRW 348,589,413 0.0055 1,917,242
LKR 62,527,357 0.0220 1,375,602
AUD 283,115 4.8484 1,372,655
SGD 182,920 5.3772 983,597
INR 9,868,292 0.0855 843,739
HKD 645,789 0.9062 585,214
BRL 378,390 1.4658 554,644
OMR 4,772 18.4200 87,900
Accounts payable
USD 123,646,874 7.0827 875,753,714
EUR 55,715,823 7.8592 437,881,796
SGD 3,527,220 5.3772 18,966,567
GBP 1,883,364 9.0411 17,027,682
KRW 2,576,247,478 0.0055 14,169,361
JPY 233,578,974 0.0502 11,725,664
HKD 8,494,522 0.9062 7,697,736
RUB 89,571,731 0.0803 7,192,610
INR 73,177,809 0.0855 6,256,703
LKR 276,092,665 0.0220 6,074,039
ZAR 9,265,863 0.3819 3,538,633
AUD 244,897 4.8484 1,187,359
BRL 792,994 1.4658 1,162,371
CAD 209,218 5.3673 1,122,936
Other payables
USD 22,114,645 7.0827 156,631,396
EUR 6,234,287 7.8592 48,996,508
KRW 889,504,378 0.0055 4,892,274
ANNUAL REPORT 2023
Item Ending foreign currency balance Conversion exchange rate Ending balance, converted into RMB
SGD 442,501 5.3772 2,379,416
LKR 104,196,396 0.0220 2,292,321
GBP 96,825 9.0411 875,405
ZAR 2,230,607 0.3819 851,869
INR 3,071,687 0.0855 262,629
HKD 15,260 0.9062 13,829
Short-term borrowings
EUR 7.8592
Long-term payables due within one year
USD 21,057,888 7.0827 149,146,703
Long-term payables
USD 184,548,793 7.0827 1,307,103,736
Other 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 recording
currency
Applicable √ Not Applicable
82. Lease
(1). As a lessee
√ Applicable Not Applicable
2023 2022
Interest expense of lease liabilities 1,313,980 615,840
Short-term lease expenses with simplified treatment included in
217,888,742 104,487,307
the current profit or loss
Total cash outflows related to leases 259,695,514 122,403,881
Cash outflow from leaseback 249,669,758 242,328,806
The leased assets leased by the Group include buildings and constructions, machinery and equipment, transportation
equipment and other equipment used in the course of operations, and the lease term is usually 1-3 years. The lease
contract usually stipulates that the Group cannot sublet the leased assets. A few lease contracts include the option of
renewal.
Leaseback
The Group usually enters into leaseback transactions for the purchase price of large ships or equipment, where the
transfer of the assets is not a sale. The Group continues to recognize the transferred assets together with a financial
liability equal to the transfer income. The Group takes such leaseback transactions as mortgage loans for accounting
treatment. The Group makes annual leaseback financing payments to the finance leasing company in accordance with
the terms of the contract.
Other lease information
Right-of-use assets are detailed in Note VII (25). The simplified treatment of short-term lease and low-value assets lease is
detailed 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 Applicable
Simplified short-term leases or lease expenses of low-value assets
Applicable √ Not Applicable
Section X Financial Report
Leaseback transactions and judgment basis
Applicable √ Not Applicable
Total cash outflows related to leases was 259,695,514 (Unit: Yuan Currency: CNY)
(2). As a lessor
Operating lease as the lessor
Applicable √ Not Applicable
Financing lease as the lessor
Applicable √ Not Applicable
Reconciliation of undiscounted lease receipts and net lease investment
Applicable √ Not Applicable
Undiscounted lease receipts for the next five years
Applicable √ Not Applicable
Other description:
Operating lease
The profit or loss related to operating leases is presented as follows:
2023 2022
Lease income 296,335,872 225,960,519
According to the lease agreement signed with the lessee, the undiscounted minimum lease receipts are as follows:
2023 2022
Within 1 year (including 1 year) 291,022,650 239,242,941
1 to 2 years (including 2 years) 222,198,493 132,035,513
2-3 years (including 3 years) 113,076,268 42,528,101
3 to 4 years (including 4 years) 105,432,422 19,751,071
4 to 5 years (including 5 years) 55,144,117 85,516,755
Over 5 years 54,066,921 828,273
Total 840,940,871 519,902,654
(3). Recognize the profit or loss of financing lease sales as a manufacturer or distributor
Applicable √ Not Applicable
Other description:
None
83. Others
Applicable √ Not Applicable
VIII. R&D expenses
(1). Presented by nature of expense
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 616,931,085 560,361,835
Depreciation and amortization 94,644,503 85,911,765
ANNUAL REPORT 2023
Item Amount incurred in the current period Amount incurred in the previous period
Materials expenses 394,464,827 300,416,273
Processing expenses 172,861,680 144,441,413
Product design expenses 2,497,150 126,214
Others 30,157,420 27,079,591
Including: Expensed R&D expenditure 1,311,556,665 1,118,337,091
Capitalized R&D expenditure
Other description: None
(2). Development expenditures of R&D projects that meet capitalization conditions
Applicable √ Not Applicable
Significant capitalized R&D projects
Applicable √ Not Applicable
Provision for development expenditure impairment
Applicable √ Not Applicable
Other description: None
(3). Significant outsourced research projects
Applicable √ Not Applicable
IX. 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 Applicable
Other description:
Applicable √ Not Applicable
Whether the control of subsidiary’s investment is lost in the current period in step-to-step disposal through multiple
transactions
Applicable √ Not Applicable
Other 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 reasons
and 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: CNY
Principal place Registration Shareholding Way of acquisition Name of
Name of subsidiary Business nature
of business place ratio (%) Direct Indirect subsidiary
Nantong Zhenhua Heavy
Nantong City, Nantong City, Machine Establishment by
Equipment Manufacturing 100.00% 0.00%
Jiangsu Province Jiangsu Province manufacturing investing
Co., Ltd.
ZPMC Transmission
Machine Establishment by
Machinery (Nantong) Co., Jiangsu Province Jiangsu Province 50.75% 0.00%
manufacturing investing
Ltd.
Shanghai Zhenhua Heavy Business
Chongming, Chongming, Machine
Industries Port Machinery 100.00% 0.00% combination under
Shanghai Shanghai manufacturing
General Equipment Co., Ltd. common control
CCCC Liyang Urban
Liyang City, Liyang City, Jiangsu Engineering Establishment by
Investment and Construction 48.00% 0.00%
Jiangsu Province Province construction investing
Co., Ltd. (Remark 1)
The shareholding ratio in subsidiaries is different from the proportion of voting rights:
None
The basis for holding half or less of the voting rights but still controlling the invested entity, and the basis for holding
more than half of the voting rights but not controlling the invested entity:
None
The basis for control of the important structured entities included in the consolidation scope:
None
Basis for determining whether the Company is an agent or a principal:
None
Other description:
Remark 1: By signing the agreement for concerted action with CCCC Shanghai Dredging Co., Ltd. and CCCC East China
Investment Co., Ltd., the Group had obtained 76% voting power in the board of shareholder and 71% voting power in the
board of directors of this company. In accordance with the regulations of the articles of association of such company, the
Group had obtained the control rights thereof, thus, such company was included in the Groups’ consolidation scope. The
articles of association of the Company stipulate that Jiangsu Sukong Urban Investment and Construction Co., Ltd., one of
such company’s shareholders, does not participate in dividends, and its shareholding ratio is 20%.
(2). Major non-wholly-owned subsidiaries
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Shareholding ratio of Profit or loss attributable to the minority Dividends declared to minority Balance of minority shareholders'
Name of subsidiary
minority shareholder shareholder in current period shareholders in current period equity at the end of the period
ZPMC Transmission Machinery (Nantong) Co., Ltd. 49.25% 66,922,016 -58,000,000 838,161,447
CCCC Zhenjiang Investment Construction Management
30.00% 5,349,505 -18,521,644 195,038,068
Development Co., Ltd.
Greenland Heavylift (HongKong) Limited 50.00% 40,624,810 -16,619,369 453,735,711
CCCC Investment & Development Qidong Co., Ltd. 50.42% 17,715,130 396,781,808
CCCC Liyang Urban Investment and Construction Co., Ltd. 52.00% 23,114,975 358,521,665
CCCC Rudong Construction Development Co., Ltd. 33.50% 8,548,685 197,060,790
Description of the difference 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 financial information of major non-wholly-owned subsidiaries
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Name of subsidiary Current Non-current Current Non-current Total Current Non-current Current Non-current Total
Total assets Total assets
assets assets liabilities liabilities liabilities assets assets liabilities liabilities liabilities
CCCC Zhenjiang Investment
Construction Management 662,347,128 662,347,128 -12,220,234 -12,220,234 565,932,743 139,615,446 705,548,189 -11,514,162 - -11,514,162
Development Co., Ltd.
Greenland Heavylift (Hong Kong)
201,642,709 2,447,207,803 2,648,850,512 -444,563,092 -1,307,103,738 -1,751,666,830 252,929,816 2,463,909,721 2,716,839,537 -455,071,592 -1,420,855,618 -1,875,927,210
Limited
ZPMC Transmission Machinery
2,322,547,899 361,342,145 2,683,890,044 -970,014,028 -11,600,916 -981,614,944 1,839,605,961 366,807,622 2,206,413,583 -522,208,391 -752,137 -522,960,528
(Nantong) Co., Ltd.
CCCC Investment &
414,930,180 1,203,059,220 1,617,989,400 -271,280,573 -560,061,964 -831,342,537 265,227,637 1,364,010,210 1,629,237,847 -97,338,764 -780,324,738 -877,663,502
Development Qidong Co., Ltd.
CCCC Liyang Urban Investment
268,591,322 1,154,852,390 1,423,443,712 -437,108,646 -120,030,905 -557,139,551 741,895,021 1,040,510,695 1,782,405,716 -796,792,640 -177,096,352 -973,888,992
and Construction Co., Ltd.
CCCC Rudong Construction
138,704,975 1,536,377,693 1,675,082,668 -548,572,968 -482,469,030 -1,031,041,998 132,878,819 1,453,726,456 1,586,605,275 -427,934,325 -540,148,743 -968,083,068
Development Co., Ltd.
ANNUAL REPORT 2023
Amount incurred in the current period Amount incurred in the previous period
Name of subsidiary Total Cash flows Total Cash flows
Operating Operating
Net profit comprehensive from operating Net profit comprehensive from operating
revenue revenue
income activities income activities
CCCC Zhenjiang Investment Construction
17,831,680 17,831,680 61,523,681 963,151 963,151 -1,227,820
Management Development Co., Ltd.
Greenland Heavylift (Hong Kong) Limited 511,168,763 48,199,340 72,890,721 287,224,364 734,051,637 230,854,796 257,705,416 526,244,021
ZPMC Transmission Machinery (Nantong)
1,328,785,966 135,889,441 135,889,441 111,733,956 1,284,808,112 120,684,118 120,684,118 138,491,055
Co., Ltd.
CCCC Investment & Development Qidong
121,670,862 35,072,519 35,072,519 154,742,174 153,052,526 31,237,560 31,237,560 -94,547,059
Co., Ltd.
CCCC Liyang Urban Investment and
66,685,288 57,787,436 57,787,436 317,797,133 86,127,303 51,019,291 51,019,291 239,771,111
Construction Co., Ltd.
CCCC Rudong Construction Development
220,611,556 25,678,959 25,678,959 -3,816,123 394,663,911 25,386,590 25,386,590 -287,574,587
Co., Ltd.
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 financial 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 Machinery
Equipment 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 consolidated
financial statements.
(2). Effect of the transaction on minority interests and attributable to owners' equity of the parent company
Section X Financial Report
Applicable √ Not Applicable
ANNUAL REPORT 2023
3. Equity in joint ventures and associates
√ Applicable Not Applicable
(1). Major joint ventures or associates
√ Applicable Not Applicable
Principal place Registration Shareholding ratio (%) Accounting
Name of joint venture or associate Business nature
of business place Direct Indirect treatment
Joint ventures
Jiangsu Longyuan Zhenhua Marine Nantong, Marine engineering
Jiangsu 50.00% - Equity method
Engineering Co., Ltd Jiangsu construction
ZPMC Mediterranean Liman Makinalari Istanbul, Technical service for port
Istanbul, Turkey 50.00% - Equity method
Ticaret Anonim Sirketi Turkey equipment
Zhenhua Marine Energy (HK) Co., Ltd. Hong Kong Hong Kong Shipping - 51.00% Equity method
Technical service for port
Cranetech Global Sdn.Bhd. Malaysia Malaysia - 49.99% Equity method
equipment
ZOSG-OTL Marine Contractor Limited
(formerly known as: ZPMC-OTL Marine Hong Kong Hong Kong Shipping - 50.00% Equity method
Contractor Limited)
Associates
Marine technology
CCCC Marine Engineering & Technology Pudong New
Shanghai development and 25.00% - Equity method
Research Center Co., Ltd. Area, Shanghai
consulting
CCCC Estate Yixing Co., Ltd. Jiangsu Wuxi, Jiangsu Real estate development 20.00% - Equity method
Changzhou,
ZPMC Changzhou Coatings Co., Ltd. Jiangsu Paint manufacture 20.00% - Equity method
Jiangsu
Pudong New
CCCC Financial Leasing Co., Ltd. Shanghai Finance lease 5.82% - Equity method
Area, Shanghai
CCCC Yancheng Construction Development Yancheng, Engineering project
Jiangsu 25.00% - Equity method
Co., Ltd. Jiangsu construction
Suzhou, Electric equipment
Suzhou Chuanglian Electric Drive Co., Ltd. Jiangsu 20.00% - Equity method
Jiangsu manufacturing
China Communications Construction USA Port, channel, highway
USA USA 24.00% - Equity method
Inc. and bridge construction
CCCC South American Regional Company Port, channel, highway
USA USA 17.00% - Equity method
SARL and bridge construction
ZPMC Southeast Asia Pte. Ltd. Singapore Singapore Trade sales - 40.00% Equity method
Shanghai Ocean Engineering Equipment Development of ocean
Shanghai China 8.97% - Equity method
Manufacturing Innovation Center Co., Ltd. engineering technology
Shanghai Xingyi Construction Technology
Shanghai Shanghai Building engineering - 30.00% Equity method
Co., Ltd.
CCCC Xiongan Urban Construction Xiongan, Engineering project
Hebei 15.00% - Equity method
Development Co., Ltd. Hebei construction
Description of the difference between shareholding ratio and proportion of voting rights in joint venture or associates:
None
Basis for holding less than 20% of voting rights but having significant influence, or holding 20% or more of voting rights
but not having significant influence:
None
(2). Main financial information of major joint ventures:
Applicable √ Not Applicable
Section X Financial Report
(3). Main financial information of major associates:
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023/Amount incurred December 31, 2022/Amount incurred in
in the current period the previous period
CCCC Financial CCCC Financial CCCC Financial CCCC Financial
Leasing Co., Ltd Leasing Co., Ltd Leasing Co., Ltd Leasing Co., Ltd
Current assets 29,354,696,299 24,850,249,868
Non-current assets 29,259,294,679 29,221,247,214
Total assets 58,613,990,978 54,071,497,082
Current liabilities -26,934,433,997 -20,646,954,425
Non-current liabilities -16,966,741,711 -21,547,988,147
Total liabilities -43,901,175,708 -42,194,942,572
Minority equity 3,326,313,271 3,386,004,140
Other equity instrument - Perpetual bond 1,000,000,000 998,000,000
Adjustment: Subscribed capital contributions not yet paid by
301,476,593
other shareholders
Shareholders’ equity attributable the parent company 10,386,501,999 7,492,550,370
Share of net assets held based on shareholding ratio 622,040,353 674,329,533
Adjustments
-- Goodwill
-- Unrealized profits of internal transactions
-- Others
Book value of equity investment in associates
Fair value of equity investment in associates with public offer 622,040,353 674,329,533
Operating revenue 3,988,743,327 3,877,175,203
Financial expenses-interest income 23,247,316 14,910,307
Financial expenses - interest expenses 10,869,873 2,936,399
Income tax expenses 410,890,621 342,767,440
Net profit 1,209,298,301 1,057,340,236
Net profit from discontinuing operation
Net of tax of other comprehensive income -6,312,624 6,950,951
Other comprehensive income
Total comprehensive income 1,202,985,677 1,064,291,187
Total comprehensive income attributable to the parent company 893,298,879 802,140,210
Dividends distributed 1,159,673,968 -
Dividends received from associates this year
Other description
None
(4). Summary of financial information of insignificant joint ventures and associates
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023/Amount December 31, 2022/Amount
incurred in the current period incurred in the previous period
Joint ventures:
Total book value of investment 367,506,947 365,964,953
Total number of following items by shareholding ratio
-- Net profit 1,541,994 76,902,400
-- Other comprehensive income
ANNUAL REPORT 2023
December 31, 2023/Amount December 31, 2022/Amount
incurred in the current period incurred in the previous period
-- Total comprehensive income 1,541,994 76,902,400
Associates:
Total book value of investment 966,710,322 962,585,436
Total number of following items by shareholding ratio
-- Net profit 4,026,422 28,454,995
-- Other comprehensive income 98,461 20,118,310
-- Total comprehensive income 4,124,883 48,573,305
Other description
None
(5). Description of the significant 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. Significant joint operation
Applicable √ Not Applicable
5. Equity in structured entities not included in the scope of consolidated financial statements
Description of structured entities not included in the scope of consolidated financial statements:
Applicable √ Not Applicable
6. Others
Applicable √ Not Applicable
XI. Government subsidie
1. Governmental subsidy not recognized by amount receivable by the end of reporting period
Applicable √ Not Applicable
Reasons 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
Amount
Amount
New subsidy included in
December 31, included in December 31, Assets related /
Item amount in non-operating Other changes
2022 other income in 2023 income related
current period income in
current period
current period
Deferred income 298,502,179 65,409,616 23,091,014 4,683,000 336,137,781 Income related
Total /
3. Government subsidy recognized in current losses and gains
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Type Amount incurred in the current period Amount incurred in the previous period
Income related 107,480,822 106,415,947
Other description:
Among the above government subsidies, some projects are government subsidies related to assets, and the rest are
related to income.
Land compensation refers to the land compensation acquired by a subsidiary of the Company, which shall be amortized
over the 50 years’ land use term.
XII. Risks related to financial instruments
1. Financial instrument risks
√ Applicable Not Applicable
Classifications of Financial instrument
The book values of various financial instruments on the balance sheet date:
2023
Financial assets
Financial assets measured at Financial assets measured at
fair value through the current Measured at fair value through the other
Total
profit or loss amortized cost comprehensive income
Standard Designated Standard Designated
Monetary funds - 5,105,078,436 - - 5,105,078,436
Held-for-trading financial assets 720,594,675 - - - - 720,594,675
Notes receivable - - 14,122,031 - - 14,122,031
Receivables financing - - - 965,569,122 - 965,569,122
Accounts receivable - - 7,266,298,102 - - 7,266,298,102
Other receivables - - 1,245,727,441 - - 1,245,727,441
Non-current assets due within one year - - 1,341,408,631 - - 1,341,408,631
Investment in other equity instruments - - - - 104,859,374 104,859,374
Long-term receivables - - 1,457,182,459 - - 1,457,182,459
Total 720,594,675 - 16,429,817,100 965,569,122 104,859,374 18,220,840,271
ANNUAL REPORT 2023
Financial liabilities
Financial liabilities measured at fair value
Financial liabilities measured at
through the current profit or loss Total
amortized cost
Standard Designated
Short-term borrowings - - 4,781,640,779 4,781,640,779
Notes payable - - 5,533,470,582 5,533,470,582
Accounts payable - - 8,616,059,138 8,616,059,138
Other payables - - 1,006,412,820 1,006,412,820
Non-current liabilities due within one year - - 8,620,719,463 8,620,719,463
Long-term borrowings - - 15,105,224,079 15,105,224,079
Long-term payables - - 1,744,502,983 1,744,502,983
Total - - 45,408,029,844 45,408,029,844
2022
Financial assets
Financial assets measured at fair Financial assets measured at
value through the current profit or Measured at fair value through the other
Total
loss amortized cost comprehensive income
Standard Designated Standard Designated
Monetary funds - - 2,397,047,713 - - 2,397,047,713
Held-for-trading financial assets 877,483,342 - - - - 877,483,342
Notes receivable - - 56,114,657 - - 56,114,657
Receivables financing - - - 439,912,428 - 439,912,428
Accounts receivable - - 7,193,649,855 - - 7,193,649,855
Other receivables - - 995,545,297 - - 995,545,297
Non-current assets due within
- - 900,213,411 - - 900,213,411
one year
Investment in other equity
- - - - 73,475,619 73,475,619
instruments
Long-term receivables - - 2,402,265,565 - - 2,402,265,565
Total 877,483,342 - 13,944,836,498 439,912,428 73,475,619 15,335,707,887
Financial liabilities
Financial liabilities measured at fair value
through the current profit or loss Financial liabilities measured at
Total
amortized cost
Standard Designated
Short-term borrowings - - 1,793,682,952 1,793,682,952
Notes payable - - 5,401,258,897 5,401,258,897
Accounts payable - - 7,255,123,334 7,255,123,334
Other payables - - 1,299,724,875 1,299,724,875
Non-current liabilities due within one year - - 6,956,741,650 6,956,741,650
Long-term borrowings - - 21,019,572,646 21,019,572,646
Long-term payables - - 1,931,340,734 1,931,340,734
Total - - 45,657,445,088 45,657,445,088
Financial instrument risks
Various financial instrument risks the Group faces during the routine activities mainly include the credit risk, liquidity risk
and market risk.
The Group’s overall risk management plan is targeted at the unpredictability of financial market, trying to minimize the
potential adverse influence on the Group’s financial results.
Credit risk
Section X Financial Report
The Group only trade with the authorized third parties and related parties in good standing. Credit risks are managed in
a centralized manner by customer/counterpart, geographic region and industry. As the Group’s customers of accounts
receivable, contract assets and long-term receivables are widely dispersed across sectors and industries, there is no
significant credit risk concentration within the Group. The Group holds collateral or other credit enhancements for the
balance 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 good
standing and having relatively higher credit rating, these financial instruments have low credit risk.
Other financial assets of the Group include commercial acceptance bill, accounts receivable, other receivables and long-
term receivables, the credit risks of these financial assets and contract assets are from the counterpart’s default, and the
maximum 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' financial
positions, the possibility of obtaining guarantees from the third party, credit records and other factors such as the current
market conditions, evaluates the credit qualifications of customers and set the credit period accordingly. The Group will
monitor 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 the
Group's overall credit risks are within the controllable scope.
Judgment criteria for significant increase in credit risk
On each balance sheet date, the Group will evaluate the credit risks of relevant financial instruments to confirm whether
they have had significant increase or not after the initial recognition. The main criteria for the Group to judge a significant
increase in credit risk are significant changes in one or more of the following indicators: Significant adverse changes in the
debtor’s operating environment, internal and external credit ratings, actual or expected operating results, etc.
Definition of assets with credit impairment
The main criteria for the Group to judge that credit impairment has occurred is that in certain circumstances, if internal
or external information shows that the contract amount may not be fully recovered before considering any credit
enhancement held, the Group will also regard it as credit impairment.
The credit impairment of financial assets may be caused by several events, not just one event which can be individually
identified.
Parameters for the measurement of expected credit loss
Based on the information whether the credit risk has had significant increase or there is credit impairment, the Group
makes 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 default
and exposure at default. Considering the quantitative analysis on historical statistical data (including the rating of the
counterpart, way of guarantee and category of collateral) and prospective information, the Group builds models for
probability of default, loss given default and exposure at default.
Relevant definitions:
(1) The probability of default refers to the possibility that the debtor will not be able to fulfill 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 loss
model, adding the prospective information to reflect the debtor's probability of default in the current macroeconomic
environment;
(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 different, the loss given
default may also be different. The loss given default refers to the percentage of the risk exposure loss at default, calculated
based 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 REPORT 2023
The prospective information is involved in the evaluation on significant change in credit risk and the calculation of
expected credit loss. Through the historical data analysis, the Group identifies the key economic indicators affecting the
credit 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 different for different
type of business. In such course, the Group makes the reference to the authoritative predictive values, expect these
economic indicators based on results of those values, and determine the impact of these economic indicators on the
probability of default and the loss given default.
The maximum risk exposure and the year-end classification of credit risk degrees regarding the Group’s financial assets
and contract assets are as follows:
2023
Expected credit loss over
Expected credit loss in the entire lifecycle
the next 12 months Total
Stage I Stage II Stage III Simple method
Monetary funds 5,105,078,436 - - - 5,105,078,436
Held-for-trading financial assets 720,594,675 - - - 720,594,675
Notes receivable - - - 14,122,031 14,122,031
Accounts receivable - - - 7,266,298,102 7,266,298,102
Contract assets - - - 2,779,633,134 2,779,633,134
Receivables financing 965,569,122 - - - 965,569,122
Other receivables 721,381,756 293,580,976 230,764,709 - 1,245,727,441
Non-current assets due within one year 1,341,408,631 - - - 1,341,408,631
Other non-current assets - - - 4,924,571,621 4,924,571,621
Long-term receivables 1,457,182,459 - - - 1,457,182,459
Total 10,311,215,079 293,580,976 230,764,709 14,984,624,888 25,820,185,652
2022
Expected credit loss over
Expected credit loss in the entire lifecycle
the next 12 months Total
Stage I Stage II Stage III Simple method
Monetary funds 2,397,047,713 - - - 2,397,047,713
Held-for-trading financial assets 877,483,342 - - - 877,483,342
Notes receivable - - - 56,114,657 56,114,657
Accounts receivable - - - 7,193,649,855 7,193,649,855
Contract assets - - - 3,243,073,136 3,243,073,136
Receivables financing 439,912,428 - - - 439,912,428
Other receivables 667,029,582 97,751,424 230,764,291 - 995,545,297
Non-current assets due within one year 900,213,411 - - - 900,213,411
Other non-current assets - - - 4,246,061,211 4,246,061,211
Long-term receivables 2,402,265,565 - - - 2,402,265,565
Total 7,683,952,041 97,751,424 230,764,291 14,738,898,859 22,751,366,615
Liquidity risk
Subsidiaries within the Group are responsible for their own cash-flow prospects. The financial section of the head
office continues to monitor the short-term and long-term capital demands at the group level after collecting the cash
flows prospects of all subsidiaries, to guarantee the sufficient cash reserve and cashable securities. Meanwhile, the
financial section of the head office continues to monitor the financial and non-financial indicators prescribed in credit-
granting agreements and loan agreements, to ensure that the Group can get sufficient line of credit from major financial
institutions, 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 on
undiscounted contracted cash flows (including principal and interest):
Section X Financial Report
2023
2023
Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 4,810,142,051 - - - 4,810,142,051
Notes payable 5,533,470,582 - - - 5,533,470,582
Accounts payable 8,616,059,138 - - - 8,616,059,138
Other payables 1,006,406,221 - - - 1,006,406,221
Non-current liabilities due
8,607,747,605 - - - 8,607,747,605
within oneyear
Long-term borrowings - 7,315,902,229 6,251,686,213 2,048,448,061 15,616,036,503
Long-term payables - 775,885,499 688,915,129 558,677,002 2,023,477,630
Total 28,573,825,597 8,091,787,728 6,940,601,342 2,607,125,063 46,213,339,730
2022
2022
Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 1,828,151,415 - - - 1,828,151,415
Notes payable 5,401,258,897 - - - 5,401,258,897
Accounts payable 7,255,123,334 - - - 7,255,123,334
Other payables 1,299,724,875 - - - 1,299,724,875
Non-current liabilities due
7,108,829,479 - - - 7,108,829,479
within oneyear
Long-term borrowings - 8,910,688,144 11,306,743,678 2,077,872,630 22,295,304,452
Long-term payables - 746,492,462 636,721,312 848,481,954 2,231,695,728
Total 22,893,088,000 9,657,180,606 11,943,464,990 2,926,354,584 47,420,088,180
Market risk
Interest rate risk
The Group’s interest rate risk is mainly from such long-term interest-bearing liabilities as long-term bank borrowings
and long-term payables. Floating-rate financial liabilities expose the Group to cash flow interest rate risk while fixed-
rate financial liabilities expose the Group to fair value interest rate risk. The Group determines the relative proportion of
contracts with fixed interest rate and contracts with floating interest rate according to the current market environment.
As at December 31, 2023, the Group’s long-term interest-bearing liabilities mainly were the floating rate contracts priced
in USD, and the fixed rate contracts priced in RMB.
The market interest rate fluctuating risks that the Group encounters are mainly relevant to the long-term liabilities where
the interest is calculated at the floating interest rate. The Group manages interest rate risk by closely monitoring interest
rate changes and regularly reviewing borrowings.
The finance department in the headquarters of the Group continues monitoring and controlling the interest rate level of
the Group. The increase in interest rate will increase the costs of the new interest-bearing debts and the interest expenses
of interest-bearing debts failing to be paid up by the Group and subject to the interest calculation at floating interest rate,
and will, significantly and adversely, affect the Group's financial results; the management will control partial interest rate
risk based on the newest market situation through the swap contract and other interest rate swap arrangements. In 2022
and 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 and
possible changes in the interest rate on net profit or loss (through the impact on loan with floating interest rate) and the
net amount of other comprehensive income after tax, based on the assumption of no change in other variables.
ANNUAL REPORT 2023
2023
Base point Increase / Net profit or loss Increase/ Net of tax of other comprehensive Total shareholders' equity
(Decrease) (Decrease) income Increase/(Decrease) Increase / (Decrease)
RMB 100 (76,054,462) - (76,054,462)
RMB (100) 76,054,462 - 76,054,462
2022
Base point Increase / Net profit or loss Increase/ Net of tax of other comprehensive Total shareholders' equity
(Decrease) (Decrease) income Increase/(Decrease) Increase / (Decrease)
RMB 100 (26,340,273) - (26,340,273)
RMB (100) 26,340,273 - 26,340,273
Exchange rate risk
The Group is exposed to transactional exchange rate risk. Such risks are due to sales or purchases made by the operating
entity in currencies other than its functional currency. The Group’s main production is within the territory of China, but its
sales and purchase is settled in USD. However, there still were foreign exchange risks in the foreign currency assets and
liabilities and future foreign currency transactions that have been recognized by the Group (foreign currency assets and
liabilities and foreign currency transactions are priced mainly in USD). The finance department of the Headquarters of the
Group is responsible for supervising the scale of the Group's foreign currency transactions and foreign currency assets
and liabilities to minimize the foreign exchange risks.
The following table is a sensitivity analysis of exchange rate risk, reflecting the assumption that all other variables will
remain the same, when the USD exchange rate changes reasonably and possibly, it will affect the net profit or loss (due to
the change in fair value of monetary assets and liabilities) and other comprehensive income, net of tax (due to the change
in fair value of forward foreign exchange contract).
2023
Net of tax of other
USD exchange rate Net profit or loss Increase/ Total shareholders' equity
comprehensive income Increase/
Increase/(Decrease) (Decrease) Increase/(Decrease)
(Decrease)
RMB appreciation against USD 1% 29,636,924 - 29,636,924
RMB depreciation against USD -1% (29,636,924) - (29,636,924)
2022
Net of tax of other
USD exchange rate Net profit or loss Increase/ Total shareholders' equity
comprehensive income Increase/
Increase/(Decrease) (Decrease) Increase/(Decrease)
(Decrease)
RMB appreciation against USD 1% 12,823,427 - 12,823,427
RMB depreciation against USD -1% (12,823,427) - (12,823,427)
Price risk of equity instrument investment
The price risk of equity instrument investment refers to the risk that the fair value of equity securities decreases due to
the change of stock index level and individual securities value. As at December 31, 2023, the Group was exposed to the
price risk of equity instrument investment arising from the individual equity instrument investment classified as equity
instrument investment measured at fair value through the current profit or loss. The listed equity instrument investment
held by the Group is listed on the stock exchanges of Shanghai, Shenzhen and Hong Kong, and measured at the market
quotation on the balance sheet date.
The following table shows the sensitivity of the Group's net profit or loss to the change of 1% of the fair value of equity
instrument investment (based on the book value on the balance sheet date) under the assumption that all other variables
remain unchanged.
Section X Financial Report
2023
Book value of Increase/(decrease) in net of Increase/(decrease)
Increase/(decrease)
equity instrument tax of other comprehensive in total shareholders'
in net profit or loss
investment income equity
Equity instrument investment
Equity instrument investment measured at
712,156,398 5,973,915 - 5,973,915
fair value through the current profit or loss
Equity instrument investment measured at
fair value through the other comprehensive 104,859,374 - 891,305 891,305
income
2022
Book value of Increase/(decrease) in net of Increase/(decrease)
Increase/(decrease) in
equity instrument tax of other comprehensive in total shareholders'
net profit or loss
investment income equity
Equity instrument investment
Equity instrument investment measured at
869,045,066 7,292,625 - 7,292,625
fair value through the current profit or loss
Equity instrument investment measured at
fair value through the other comprehensive 73,475,619 - 624,543 624,543
income
Capital management
The main goal of the Group’s capital management is to guarantee the Group’s persistent operatio and maintain a sound
capital 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 not
subject to external mandatory capital requirements and makes use of the asset-liability ratio to monitor capital. This ratio
is calculated by the net debt divided by total capital. The net debt is the total borrowing (including short-term borrowings
listed 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:
2023 2022
Debt ratio 62% 63%
2. Hedging
(1). The Company conducts hedging business for risk management
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
(2). The Company conducts eligible hedging business and applies hedging accounting
Applicable √ Not Applicable
Other 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 REPORT 2023
Other description:
Applicable √ Not Applicable
3. Transfer of financial asset
(1). Classification of transfer method
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Nature of transferred Amount of transferred
Transfer method Derecognition Basis for judgment of derecognition
financial assets financial assets
Amount Already transferred almost all of its risks
Note endorsement Notes receivable 995,992,018
derecognized and remuneration
Amount Already transferred almost all of its risks
Asset securitization (remark) Accounts receivable 678,146,131
derecognized and remuneration
Amount Already transferred almost all of its risks
Discount bill Notes receivable 383,612,553
derecognized and remuneration
Endorsement of debt certificates Amount Already transferred almost all of its risks
Receivables financing 33,809,204
of digital accounts receivable derecognized and remuneration
Total / 2,091,559,906 / /
(2). Financial assets derecognized due to transfer
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount of financial assets
Item Method of financial asset transfer Profit or loss related to derecognition
derecognized
Notes receivable Note endorsement 995,992,018
Accounts receivable Asset securitization 678,146,131 -36,768,129
Notes receivable Discount bill 383,612,553 -16,628,696
Endorsement of debt certificates of
Receivables financing 33,809,204
digital accounts receivable
Total / 2,091,559,906 -53,396,825
(3). Transferred financial assets involved continuously
Applicable √ Not Applicable
Other description:
√ Applicable Not Applicable
Note: In 2023, the book balance of the derecognized accounts receivable was RMB 2,060,268,380 and the book balance of
contract assets was RMB 66,537,374 (2022: RMB 837,502,837 of book balance of accounts receivable, RMB 182,227,057 of
book balance of contract assets), and a loss of RMB 115,312,416 (2022: RMB 20,135,378) upon derecognition was included
in investment income.
Transferred financial assets derecognized as a whole but involved continuously
As at December 31, 2023, the book value of bank acceptance bills given by the Group upon endorsement to suppliers
for 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 with
the relevant provisions of the Negotiable Instruments Law, if the acceptance bank refuses to pay, the bill holder shall be
entitled to recourse to any one, several or all of the bill debtors, including the Group, regardless of the order of the bill
debtors (“continue to be involved”). The Group considered that it had transferred almost all risks and rewards of such
bill, therefore, the aforesaid book value and relevant settled accounts payable should be derecognized as a whole. The
maximum losses and undiscounted cash flows that continue to be involved were equal to the book value. The Group
considered that the fair value with continuous involvement was insignificant.
Section X Financial Report
The Group had no income or expense which had been recognized for the current year or accumulatively as it had been
derecognized as a whole but continued to be involved in the financial assets. The endorsement of bank acceptance bill
receivable 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: CNY
Ending fair value
Item Fair value Fair value Fair value
measurement measurement measurement at Total
at level 1 at level 2 level 3
I. Continuous fair value measurement
(I) Held-for-trading financial assets 712,156,397 8,438,278 720,594,675
1. Financial assets measured at fair value through the current profit or loss 712,156,397 8,438,278 720,594,675
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative financial assets 8,438,278 8,438,278
(4) Equity of listed companies 712,156,397 712,156,397
2. Financial assets designated to be measured at fair value through the current
profit or loss
(1) Debt instrument investment
(2) Equity instrument investments
(II) Other debtinvestment
(III) Investment in other equity instruments 104,859,374 104,859,374
(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 financing 965,569,122 965,569,122
Total assets measured with continuous fair value continuously 712,156,397 965,569,122 113,297,652 1,791,023,171
(VII) Held-for-trading financial liabilities
1. Financial liabilities measured at fair value through current profit or loss
Including: Trading bonds issued
Derivative financial liabilities
Others
2. Financial liabilities designated to be measured at fair value through the current
profit or loss
Total liabilities measured with continuous fair value continuously
II. Non-continuous fair value measurement
(I) Assets held for sale
Total assets not continuously measured at fair value
Total 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 REPORT 2023
The 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 Applicable
Where there is an active market traded for a financial instrument, the Group shall adopt the quoted price in the active
market to determine the fair value thereof; where there is no active market traded for a financial instrument, the Group
shall adopt value appraisal techniques to determine its fair value. The valuation models used are discounted cash flow
model and market comparable company model. The input value of valuation techniques mainly includes the weighted
average cost of capital, liquidity discount, price to book ratio of comparable companies.
The fair value of receivables financing is determined by the discounted future cash flow method, with the market yield of
other financial 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 Applicable
The Group’s finance department is led by the financial manager, who is responsible for formulating policies and
procedures for fair value measurement of financial instruments. The financial manager reports directly to the CFO. On
each balance sheet date, the financial department analyzes the value fluctuations of financial instruments and confirm
the main entered values suitable for valuations. The valuation must be reviewed and approved by the CFO. For the
purpose of annual financial statements, the valuation process and results are discussed with the Audit Committee once a
year.
The fair value of non-listed equity instrument investments is estimated using the market approach based on unobservable
market 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 each
comparable listed company identified. Adjustments will be made based on the specific facts and circumstances of the
enterprise, taking into account factors such as liquidity and size differences between comparable listed companies. The
Group believes that the fair value and its changes estimated by valuation techniques are reasonable and are also the most
appropriate value at the balance sheet date. For the fair value of non-listed equity instrument investments, the Group
estimates 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 Weighted
Valuation technique Unobservable input value
of the year average/scope
Level 3 2023:
Held-for-trading financial assets - Weighted average cost of
In 2023: 8,438,278 Discount cash flow model 11%
equity instrument investments capital
Liquidity discount 26%
Comparable company mode P/B ratio of comparable
Other equity instrument investment In 2023: 104,859,374 1.7-2.2
on the market company
Held-for-trading financial assets - Weighted average cost of
In 2022: 8,438,278 Discount cash flow model 11%
equity instrument investments capital
Liquidity discount 28%
Comparable company mode P/B ratio of comparable
Other equity instrument investment In 2022: 73,475,619 1.3-2.6
on the market company
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 different 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 financial assets and financial liabilities not measured at fair value
Applicable √ Not Applicable
9. Others
√ Applicable Not Applicable
For continuous fair value measurement items at level 3, the adjustment information is as follows:
2023
Total gains or losses for Assets held at
the current period the end of the
Transfer Transfer year Changes in
Beginning Included Ending
into out of Included Purchase Issue Sale Settlement unrealized gains
balance in other balance
level 3 level 3 in profit or losses for the
comprehensive period included
or loss
income in profit or loss
Held-for- trading
financial assets
Equity
instrument 8,438,278 - - - - - - - - 8,438,278 -
investments
Other equity
73,475,619 - - - 12,593,755 18,790,000 - - - 104,859,374 -
instruments
Total 81,913,897 - - - 12,593,755 18,790,000 - - - 113,297,652 -
2022
Total gains or losses for the Assets held at
current period the end of the
Transfer Transfer year Changes in
Beginning Included Ending
into out of Included Purchase Issue Sale Settlement unrealized gains
balance in other balance
level 3 level 3 in profit or losses for the
comprehensive period included
or loss
income in profit or loss
Held-for- trading
financial assets
Equity
instrument 8,438,278 - - - - - - - - 8,438,278 -
investments
Other equity
66,280,045 - - - 7,195,574 - - - - 73,475,619 -
instruments
Total 74,718,323 - - - 7,195,574 - - - - 81,913,897 -
XIV. Related parties and related party transactions
1. Parent company
√ Applicable Not Applicable
ANNUAL REPORT 2023
Unit: Yuan Currency: CNY
Registration Shareholding ratio in Voting ratio in the
Parent company Business nature Registered capital
place the Company (%) Company (%)
China Communications Port project contracting and
Beijing City 5,855,423,830 46 46
Construction Group Co., Ltd. related business
Description of the parent company of the Company
None
The final 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 Applicable
For 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 Applicable
Other joint ventures or associates that have related party transactions with the Company in the current period or formed
balance in the previous period are as follows.
Applicable √ Not Applicable
Other description
Applicable √ Not Applicable
4. Other related parties
√ Applicable Not Applicable
Name of other related parties Relationship with related party
Friede & Goldman, Llc. Controlled by the same parent company
ZPMC ISTANBUL LIMAN MAKINALARI Tic A.S. Controlled by the same parent company
Beijing BLDJ Landscape Architecture Institute Co., LTD. Controlled by the same parent company
Beijing Rate Electronic Technology Developing Co., Ltd. Controlled by the same parent company
CCCC Guidu Highway Construction Co., Ltd. Controlled by the same parent company
Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd. Controlled by the same parent company
Jiujiang Education Consulting Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. Controlled by the same parent company
Road and Bridge Construction Chongqing Fengfu Expressway Development Co., Ltd. Controlled by the same parent company
Road and Bridge Construction Chongqing Fengshi Expressway Development Co., Ltd. Controlled by the same parent company
SanYa Phoenix Island International Cruise Terminal Development Co., Ltd. Controlled by the same parent company
Xiamen Jiehang Engineering Testing Technology Co., Ltd. Controlled by the same parent company
DaHua Technology Co., Ltd. Controlled by the same parent company
Shanghai Waterway Logistics Co., Ltd Controlled by the same parent company
Shanghai Jiangtian Industrial Co., Ltd. Controlled by the same parent company
Shanghai Communications Construction Contracting Co., Ltd. Controlled by the same parent company
Shanghai Interlink Road & Bridge Engineering Co., Ltd. Controlled by the same parent company
Shanghai Zhensha Longfu Machinery Co., Ltd. Controlled by the same parent company
Section X Financial Report
Name of other related parties Relationship with related party
Shanghai China Communications Water Transportation Design & Research Co., Ltd. Controlled by the same parent company
Sichuan Road & Bridge Group Co., Ltd. Controlled by the same parent company
Tianjin Harbour Engineering Quality Inspection Center Co., Ltd. Controlled by the same parent company
CCCC Tianjin Dredging Co., Ltd. Controlled by the same parent company
Zhenhua Engineering Co., Ltd. Controlled by the same parent company
Xiangtan CCCC Infrastructure Investment and Construction Co., Ltd. Controlled by the same parent company
Yueyang Chenglingji New Port Co., Ltd. Controlled by the same parent company
Zhejiang Lvzhou Photovoltaic Technology Co., Ltd. Controlled by the same parent company
Zhenhua (Singapore) Engineering Co., Ltd. Controlled by the same parent company
China Harbour Engineering Co., Ltd. Controlled by the same parent company
China Highway Vehicle & Machinery Co., Ltd. Controlled by the same parent company
China Communications Construction Company Ltd. Controlled by the same parent company
China Communications Materials Co., Ltd. Controlled by the same parent company
China Communications Information Technology Group Co., Ltd. Controlled by the same parent company
China Road & Bridge Corporation Controlled by the same parent company
Chuwa Risheng (Beijing) International Trade Co., Ltd. Controlled by the same parent company
Chuwa Bussan Co., Ltd. Controlled by the same parent company
CCCC (Xiamen) Information Co., Ltd Controlled by the same parent company
CCCC Tianjin Dredging Co., Ltd. Controlled by the same parent company
CCCC (Zhengzhou) Construction Co., Ltd. Controlled by the same parent company
CCCC Finance Company Ltd. Controlled by the same parent company
CCCC Industrial Investment Holding Company Ltd. Controlled by the same parent company
CCCC Chenzhou Road Construction Machinery Co., Ltd. Controlled by the same parent company
CCCC Urban Operation Management Co., Ltd. Controlled by the same parent company
CCCC Second Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC Second Highway Consultants Co., Ltd. Controlled by the same parent company
CCCC Second Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Second Harbor Consultants Co., Ltd. Controlled by the same parent company
CCCC Third Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC Third Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Third Harbor Consultants Co., Ltd. Controlled by the same parent company
CCCC Fourth Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Fourth Harbor Consultants Co., Ltd. Controlled by the same parent company
CCCC First Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC First Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC First Harbor Consultants Co., Ltd. Controlled by the same parent company
CCCC Northeast Investment Co., Ltd. Controlled by the same parent company
CCCC - SHEC Second Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC - SHEC Fourth Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC-SHEC Fifth Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC-SHEC First Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC-SHEC Railway Engineering Co., Ltd. Controlled by the same parent company
CCCC - SHEC Railway Construction Co., Ltd. Controlled by the same parent company
No.2 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. Controlled by the same parent company
No.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. Controlled by the same parent company
No.4 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. Controlled by the same parent company
The First Construction Company of CCCC Second Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Highway Bridges National Engineering Research Centre Co., Ltd. Controlled by the same parent company
CCCC International (Hong Kong) Holdings Limited Controlled by the same parent company
CCCC Haifeng Wind Power Development Co., Ltd. Controlled by the same parent company
ANNUAL REPORT 2023
Name of other related parties Relationship with related party
CCCC Marine Engineering & Technology Research Center Co., Ltd. Controlled by the same parent company
CCCC Ocean Investment Holding Co., Ltd. (Consolidated) Controlled by the same parent company
CCCC East China Investment Co., Ltd. Controlled by the same parent company
CCCC Electrical and Mechanical Engineering Co., Ltd. Controlled by the same parent company
China Communications Construction Company (M) Sdn. Bhd. Controlled by the same parent company
CCCC Construction Group Co., Ltd. Controlled by the same parent company
Road & Bridge East China Engineering Co., Ltd. Controlled by the same parent company
Road & Bridge International Co., Ltd. Controlled by the same parent company
CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch Controlled by the same parent company
No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. Controlled by the same parent company
No.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. Controlled by the same parent company
Xing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Shanghai Dredging Co., Ltd. Controlled by the same parent company
CCCC Shanghai Channel Equipment Industry Co., Ltd. Controlled by the same parent company
CCCC Shanghai Equipment Engineering Co., Ltd. Controlled by the same parent company
CCCC Design Consulting Group Co., Ltd. Controlled by the same parent company
CCCC Worldcom (Chongqing) Heavy Industries Co., Ltd. Controlled by the same parent company
CCCC Dredging (Group) Co., Ltd. Controlled by the same parent company
CCCC National Engineering Research Center of Dredging Technology and Equipment Co., Ltd. Controlled by the same parent company
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Water Transportation Planning and Design Institute Co., Ltd. Controlled by the same parent company
No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. Controlled by the same parent company
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Tunnel Engineering Company Limited Controlled by the same parent company
Harbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd. Controlled by the same parent company
CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. Controlled by the same parent company
CCCC Tianjin Industry and Trade Co., Ltd. Controlled by the same parent company
CCCC Tianjin Dredging Co., Ltd. Controlled by the same parent company
CCCC Xingyu Technology Co., Ltd Controlled by the same parent company
CCCC Xiongan Urban Construction Development Co., Ltd. Controlled by the same parent company
CCCC Xiongan Financial Leasing Co., Ltd. Controlled by the same parent company
CCCC Yancheng Construction Development Co., Ltd. Controlled by the same parent company
No. 6 Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd. Controlled by the same parent company
CCCC First Highway Fifth Engineering Co., Ltd. Controlled by the same parent company
CCCC First Highway Electrification Engineering Co., Ltd. Controlled by the same parent company
First Highway Engineering Group Co., Ltd. Controlled by the same parent company
Chongqing Yongjiang Expressway Investment and Construction Co., Ltd. of FHEC of CCCC Controlled by the same parent company
Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. Controlled by the same parent company
No.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. Controlled by the same parent company
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC Capital Holdings Co., Ltd. Controlled by the same parent company
CCCC Asset Management Co., Ltd. Controlled by the same parent company
CCCC Leasing (Shandong) Co., Ltd. Controlled by the same parent company
CCCC Leasing Jiahua No.2 Co., Ltd. Controlled by the same parent company
CCCC Leasing Jiahua No.1 Co., Ltd. Controlled by the same parent company
CNPC & CCCC Petroleum Sales Co., Ltd. Controlled by the same parent company
Chongqing 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
Amount Approved Exceeding Amount
Content of incurred in transaction transaction incurred in
Related party
transaction the current limit (if limit (if the previous
period applicable) applicable) period
CCCC Third Harbor Engineering Co., Ltd. Rendering of service 171,946,593 283,109,058
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. Rendering of service 52,670,536 1,826,083
Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd. Rendering of service 32,556,696
China Communications Construction Company (M) Sdn. Bhd. Rendering of service 20,833,485
Road & Bridge International Co., Ltd. Rendering of service 16,972,477 41,038
Zhejiang Lvzhou Photovoltaic Technology Co., Ltd. Rendering of service 9,234,970
China Communications Construction Company Ltd. Rendering of service 6,321,921
ZPMC Changzhou Coatings Co., Ltd. Rendering of service 4,131,206 40,201
CCCC Shanghai Equipment Engineering Co., Ltd. Rendering of service 919,995
CCCC Financial Leasing Co., Ltd. Rendering of service 691,835
CCCC Photovoltaic Technology Co., Ltd. Rendering of service 128,742
CCCC Shanghai Dredging Co., Ltd. Rendering of service 48,660 1,458,199
CCCC (Xiamen) Information Co., Ltd Rendering of service 18,247
CCCC Third Highway Engineering Co., Ltd. Rendering of service 36,092,540
Road and Bridge Construction Chongqing Fengfu Expressway
Rendering of service 2,335,010
Development Co., Ltd.
Shanghai Jiangtian Industrial Co., Ltd. Rendering of service 1,504,488
China Road & Bridge Corporation Rendering of service 1,201,790
Road and Bridge Construction Chongqing Fengshi Expressway
Rendering of service 756,398
Development Co., Ltd.
CCCC Second Harbor Engineering Co., Ltd. Rendering of service 567,172
CCCC Tianjin Dredging Co., Ltd. Rendering of service 471,698
CCCC First Harbor Engineering Co., Ltd. Rendering of service 452,830
No.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co.,
Rendering of service 188,679
Ltd.
Chongqing Yongjiang Expressway Investment and Construction
Rendering of service 172,087
Co., Ltd. of FHEC of CCCC
China Communications Information Technology Group Co., Ltd. Rendering of service 47,830
Jiujiang Education Consulting Co., Ltd. of CCCC Second Harbor
Rendering of service 1,698
Engineering Co., Ltd.
CCCC Haifeng Wind Power Development Co., Ltd. Sales of goods 1,140,744,581 374,901,683
CCCC Third Harbor Engineering Co., Ltd. Sales of goods 307,346,561 124,835,563
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. Sales of goods 734,361,957 1,288,582,356
CCCC International (Hong Kong) Holdings Limited Sales of goods 541,656,238
China Harbour Engineering Co., Ltd. Sales of goods 368,658,012 441,437,766
CCCC National Engineering Research Center of Dredging
Sales of goods 267,238,142
Technology and Equipment Co., Ltd.
Road & Bridge International Co., Ltd. Sales of goods 201,584,250 10,764,510
CCCC Second Harbor Engineering Co., Ltd. Sales of goods 238,838,013 3,102,305
China Road & Bridge Corporation Sales of goods 84,833,201 446,539,717
CCCC Second Highway Engineering Co., Ltd. Sales of goods 65,503,346 36,106,344
CCCC Tianjin Dredging Co., Ltd. Sales of goods 58,364,520 1,198,938
ANNUAL REPORT 2023
Amount Approved Exceeding Amount
Content of incurred in transaction transaction incurred in
Related party
transaction the current limit (if limit (if the previous
period applicable) applicable) period
CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. Sales of goods 50,915,826 32,668,690
CCCC First Harbor Engineering Co., Ltd. Sales of goods 44,364,127 167,241,398
CCCC Third Highway Engineering Co., Ltd. Sales of goods 36,902,683 57,013,916
ZPMC Southeast Asia Pte. Ltd Sales of goods 15,799,598 2,611,725
CCCC-SHEC First Highway Engineering Co., Ltd. Sales of goods 15,698,029
CCCC Fourth Harbor Engineering Co., Ltd. Sales of goods 14,761,062 45,044,248
CCCC Shanghai Equipment Engineering Co., Ltd. Sales of goods 12,501,272 838,967
CCCC Electrical and Mechanical Engineering Co., Ltd. Sales of goods 10,606,881
Sichuan Road & Bridge Group Co., Ltd. Sales of goods 4,864,250
Friede & Goldman, Llc. Sales of goods 2,688,794
Chongqing Zhongwan Expressway Co., Ltd. Sales of goods 1,995,329
CCCC Water Transportation Planning and Design Institute Co., Ltd. Sales of goods 1,698,113
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Sales of goods 1,429,299
Road and Bridge Construction Chongqing Fengfu Expressway
Sales of goods 1,388,404
Development Co., Ltd.
Road and Bridge Construction Chongqing Fengshi Expressway
Sales of goods 1,141,435 1,202,880
Development Co., Ltd.
CCCC Third Harbor Consultants Co., Ltd. Sales of goods 695,283
ZPMC Changzhou Coatings Co., Ltd. Sales of goods 628,066 160,463
China Communications Construction Company Ltd. Sales of goods 566,038 28,946,178
CCCC Shanghai Dredging Co., Ltd. Sales of goods 499,115
CCCC First Highway Engineering Co., Ltd. Sales of goods 322,161
CCCC First Harbor Consultants Co., Ltd. Sales of goods 75,472
Chongqing Yongjiang Expressway Investment and Construction
Sales of goods 29,361
Co., Ltd. of FHEC of CCCC
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co.,
Sales of goods 213,716,814
Ltd.
No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co.,
Sales of goods 208,387,950
Ltd.
CCCC - SHEC Second Highway Engineering Co., Ltd. Sales of goods 8,060,013
CCCC Tianjin Industry and Trade Co., Ltd. Sales of goods 6,767,181
CCCC Construction Group Co., Ltd. Sales of goods 270,456
CCCC (Xiamen) Information Co., Ltd Sales of goods 166,240
Sales of goods/rendering of labor services
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
CCCC Shanghai Equipment Engineering Co., Ltd. Receipt of labor services 752,922,950 368,095,891
CCCC Third Highway Engineering Co., Ltd. Receipt of labor services 687,713,755 220,317,269
CCCC Third Harbor Engineering Co., Ltd. Receipt of labor services 371,129,367 134,197,024
CCCC Second Harbor Engineering Co., Ltd. Receipt of labor services 222,904,254 227,255,981
CCCC Dredging (Group) Co., Ltd. Receipt of labor services 158,493,251
CCCC First Highway Engineering Co., Ltd. Receipt of labor services 149,740,693 293,136,519
CCCC Tianjin Dredging Co., Ltd. Receipt of labor services 109,387,957 152,397,803
No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. Receipt of labor services 66,133,834 452,903,273
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. Receipt of labor services 62,221,990 14,150,943
Section X Financial Report
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
Road & Bridge East China Engineering Co., Ltd. Receipt of labor services 14,183,526 50,674,337
CCCC Water Transportation Planning and Design Institute Co., Ltd. Receipt of labor services 14,017,842
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor
Receipt of labor services 12,637,168
Engineering Co., Ltd.
Road & Bridge International Co., Ltd. Receipt of labor services 11,689,044
CCCC Shanghai Dredging Co., Ltd. Receipt of labor services 11,588,582 9,147,073
First Highway Engineering Group Co., Ltd. Receipt of labor services 8,304,464
CCCC Second Highway Consultants Co., Ltd. Receipt of labor services 2,664,128 3,475,462
CCCC Photovoltaic Technology Co., Ltd. Receipt of labor services 1,599,475
CCCG Receipt of labor services 1,517,333
CCCC First Harbor Engineering Co., Ltd. Receipt of labor services 1,326,200 2,321,373
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. Receipt of labor services 1,026,549
ZPMC Changzhou Coatings Co., Ltd. Receipt of labor services 806,027
CCCC Urban Operation Management Co., Ltd. Receipt of labor services 712,686
CCCC National Engineering Research Center of Dredging Technology and
Receipt of labor services 471,698
Equipment Co., Ltd.
CCCC Third Harbor Consultants Co., Ltd. Receipt of labor services 1,051,663 939,041
CCCC Xingyu Technology Co., Ltd Receipt of labor services 230,796 861,426
CCCC Design Consulting Group Co., Ltd. Receipt of labor services 227,920
China Road & Bridge Corporation Receipt of labor services 154,325 4,281,621
China Communications Information Technology Group Co., Ltd. Receipt of labor services 112,655 18,659,881
China Communications Materials Co., Ltd. Receipt of labor services 75,472
Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd. Receipt of labor services 38,666
ZPMC Southeast Asia Pte. Ltd Receipt of labor services 40,615,972
CCCC Construction Group Co., Ltd. Receipt of labor services 28,301,887
Shanghai Communications Construction Contracting Co., Ltd. Receipt of labor services 7,018,983
Shanghai China Communications Water Transportation Design & Research
Receipt of labor services 4,139,151
Co., Ltd.
Shanghai Waterway Logistics Co., Ltd Receipt of labor services 1,492,658
Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. Receipt of labor services 1,344,340
Shanghai Interlink Road & Bridge Engineering Co., Ltd. Receipt of labor services 1,159,917
CNPC & CCCC Petroleum Sales Co., Ltd. Receipt of labor services 965,323
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Receipt of labor services 885,446
Beijing BLDJ Landscape Architecture Institute Co., LTD. Receipt of labor services 366,037
CCCC Second Harbor Consultants Co., Ltd. Receipt of labor services 230,063
CCCC (Xiamen) Information Co., Ltd Receipt of labor services 45,217
CCCC Shanghai Equipment Engineering Co., Ltd. Purchase of goods 300,511,230 370,483,873
CCCC Tianjin Industry and Trade Co., Ltd. Purchase of goods 234,024,336 3,899,530
ZPMC Changzhou Coatings Co., Ltd. Purchase of goods 117,896,910 131,829,860
CNPC & CCCC Petroleum Sales Co., Ltd. Purchase of goods 80,031,231 53,399,047
CCCC Third Harbor Engineering Co., Ltd. Purchase of goods 33,092,078 37,699,113
China Communications Information Technology Group Co., Ltd. Purchase of goods 27,915,300 4,001,152
Chuwa Risheng (Beijing) International Trade Co., Ltd. Purchase of goods 15,807,655 7,280,458
CCCC (Xiamen) Information Co., Ltd Purchase of goods 12,959,416 1,022,057
Shanghai Zhensha Longfu Machinery Co., Ltd. Purchase of goods 9,824,711 5,974,560
CCCC Fourth Harbor Consultants Co., Ltd. Purchase of goods 8,093,363 3,623,894
CCCC Third Harbor Consultants Co., Ltd. Purchase of goods 4,469,027 31,363,816
CCCC Urban Operation Management Co., Ltd. Purchase of goods 3,966,707
CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. Purchase of goods 1,769,912
CCCC Photovoltaic Technology Co., Ltd. Purchase of goods 553,577
ANNUAL REPORT 2023
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
Chuwa Bussan Co., Ltd. Purchase of goods 251,127
CCCC Xingyu Technology Co., Ltd Purchase of goods 233,588 266,896
CCCC Shanghai Channel Equipment Industry Co., Ltd. Purchase of goods 30,973
ZPMC Southeast Asia Pte. Ltd Purchase of goods 8,276 28,685,372
Shanghai Jiangtian Industrial Co., Ltd. Purchase of goods 13,419,612
CCCC Water Transportation Planning and Design Institute Co., Ltd. Purchase of goods 8,336,283
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor
Purchase of goods 6,318,584
Engineering Co., Ltd.
Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. Purchase of goods 4,867,257
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Purchase of goods 2,347,434
CCCC Highway Bridges National Engineering Research Centre Co., Ltd. Purchase of goods 1,189,381
Xing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. Purchase of goods 775,633
Shanghai Waterway Logistics Co., Ltd Purchase 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 Applicable
Description of the trusteeship/contracting with related parties
Applicable √ Not Applicable
Entrustment/outsourcing of the Company
Applicable √ Not Applicable
Management/outsourcing with related parties
Applicable √ Not Applicable
(3). Leases with related parties
The Company as the lessor:
Applicable √ Not Applicable
The Company as the lessee:
Applicable √ Not Applicable
Description of leases with related parties
Applicable √ Not Applicable
(4). Guarantees with related parties
The Company as the guarantor
Applicable √ Not Applicable
The Company as the guaranteed party
Applicable √ Not Applicable
Description 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: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management personnel 1,135 1,535
(8). Other related party transactions
√ Applicable Not Applicable
Distribution of dividends to related parties
2023 2022
CCCG 75,938,271
CCCC International (Hong Kong) Holdings Limited 45,837,792
Total 121,776,063
Deposits in (withdrawal of deposits from) related parties
2023 2022
CCCC Finance Company Ltd. 1,596,694,115 (1,600,236,793)
Borrowings from related parties
2023 2022
CCCC Xiongan Financial Leasing Co., Ltd. 158,922,791 120,000,000
CCCC Finance Company Ltd. (Remark) 48,840,000 544,000,000
Total 207,762,791 664,000,000
Note: The borrowing of RMB 48,840,000 (2022: RMB 544,000,000) in this year is a loan granted by CCCC Finance Company
Ltd. to the Company on behalf of China Communications Construction Company Ltd. The three parties signed the
Entrusted Loan Contract.
Interest collected from related parties
2023 2022
CCCC Finance Company Ltd. 2,870,317 672,361
Xiangtan CCCC Infrastructure Investment and Construction Co., Ltd. 28,423,585
Total 2,870,317 29,095,946
Interest paid to related parties
2023 2022
CCCC Finance Company Ltd. 13,273,282 7,437,556
CCCC Xiongan Financial Leasing Co., Ltd. 8,220,332 14,591,870
CCCC Financial Leasing Co., Ltd. 156,318
CCCC Leasing Jiahua No.1 Co., Ltd. 95,492
CCCC Leasing Jiahua No.2 Co., Ltd. 95,492
Total 21,493,614 22,376,728
ANNUAL REPORT 2023
6. Unsettled items such as receivables and payables of related parties
(1). Receivables
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Balance as at December 31, Balance as at December 31,
2023 2022
Item Related parties
Provision for Provision for
Book balance Book balance
bad debt bad debt
Accounts receivable CCCC Haifeng Wind Power Development Co., Ltd. 529,999,000 243,735,000
Accounts receivable Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 487,062,623 119,803,239
Accounts receivable CCCC Third Harbor Engineering Co., Ltd. 266,507,857 211,646,105
Accounts receivable China Harbour Engineering Co., Ltd. 159,505,072 93,246,900
Accounts receivable CCCC First Harbor Engineering Co., Ltd. 101,615,705 192,888,613
Accounts receivable China Road & Bridge Corporation 70,398,866 138,480,715
Accounts receivable CCCC Second Harbor Engineering Co., Ltd. 49,640,033 47,380,307
Accounts receivable CCCC Electrical and Mechanical Engineering Co., Ltd. 39,111,657 86,806,696
Accounts receivable CCCC International (Hong Kong) Holdings Limited 37,104,445
Xiangtan CCCC Infrastructure Investment and Construction
Accounts receivable 36,599,733 36,599,733
Co., Ltd.
Accounts receivable China Communications Construction Company Ltd. 21,653,922 20,714,844
Accounts receivable CCCC Tianjin Dredging Co., Ltd. 21,150,779 8,160,365
ZOSG-OTL Marine Contractor Limited (formerly known as:
Accounts receivable 17,815,996 24,248,168
ZPMC-OTL Marine Contractor Limited)
Accounts receivable CCCC First Highway Engineering Co., Ltd. 17,616,442 3,110,301
Accounts receivable Friede & Goldman, Llc. 17,272,068 16,293,389
Accounts receivable CCCC Second Highway Engineering Co., Ltd. 16,876,826 5,546,487
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering
Accounts receivable 16,705,903 64,841,100
Co., Ltd.
Accounts receivable ZPMC Southeast Asia Pte. Ltd 16,454,864 13,486,165
Accounts receivable CCCC Financial Leasing Co., Ltd. 16,011,555 16,865,821
Accounts receivable CCCC - SHEC Fourth Highway Engineering Co., Ltd. 13,833,457 13,833,457
Accounts receivable CCCC Fourth Harbor Engineering Co., Ltd. 13,637,735 26,986,726
Accounts receivable ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 12,900,680 11,282,084
Accounts receivable CCCC Third Highway Engineering Co., Ltd. 10,390,337 1,128,632
Accounts receivable CCCC Fourth Harbor Consultants Co., Ltd. 7,398,000 7,398,000
Accounts receivable CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. 6,825,894 13,805,933
Accounts receivable Zhejiang Lvzhou Photovoltaic Technology Co., Ltd. 6,566,117
Accounts receivable Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd. 6,405,728 14,446,169
Accounts receivable Road & Bridge International Co., Ltd. 4,143,751 1,143,748
No.3 Engineering Co., Ltd. of CCCC Second Harbor
Accounts receivable 4,082,214 7,282,296
Engineering Co., Ltd.
No.4 Engineering Co., Ltd. of CCCC Second Harbor
Accounts receivable 3,939,400 6,137,565
Engineering Co., Ltd.
Accounts receivable CCCC First Harbor Consultants Co., Ltd. 3,723,715 20,307,006
Accounts receivable Chongqing Zhongwan Expressway Co., Ltd. 2,509,932 1,679,281
Accounts receivable CCCC Tianjin Dredging Co., Ltd. 2,476,633 82,800
Accounts receivable CCCC Third Harbor Consultants Co., Ltd. 2,038,956 2,007,459
No. 6 Engineering Co., Ltd. of CCCC First Highway Engineering
Accounts receivable 2,000,000 3,032,564
Co., Ltd.
CCCC Water Transportation Planning and Design Institute Co.,
Accounts receivable 1,800,000
Ltd.
Accounts receivable Shanghai Jiangtian Industrial Co., Ltd. 768,332 2,014,799
Section X Financial Report
Balance as at December 31, Balance as at December 31,
2023 2022
Item Related parties
Provision for Provision for
Book balance Book balance
bad debt bad debt
Accounts receivable Beijing Rate Electronic Technology Developing Co., Ltd. 741,517 891,517
Installation Engineering Co., Ltd. of CCCC First Harbor
Accounts receivable 690,188 213,349
Engineering Co., Ltd.
Accounts receivable ZPMC Changzhou Coatings Co., Ltd. 637,550
Road and Bridge Construc tion Chongqing Fengshi
Accounts receivable 435,235 601,676
Expressway Development Co., Ltd.
No.2 Engineering Co., Ltd. of CCCC Second Harbor
Accounts receivable 417,150 417,150
Engineering Co., Ltd.
Road and Bridge Construction Chongqing Fengfu Expressway
Accounts receivable 366,044 2,335,010
Development Co., Ltd.
Accounts receivable CCCC-SHEC First Highway Engineering Co., Ltd. 347,248
Accounts receivable CCCG 300,000 300,000
Accounts receivable CCCC Shanghai Equipment Engineering Co., Ltd. 207,000 168,000
Accounts receivable CCCC Construction Group Co., Ltd. 164,031 82,015
Accounts receivable CCCC Photovoltaic Technology Co., Ltd. 136,467
Accounts receivable Yueyang Chenglingji New Port Co., Ltd. 48,680 48,680
SanYa Phoenix Island International Cruise Terminal
Accounts receivable 33,740 33,740
Development Co., Ltd.
Accounts receivable CCCC First Highway Electrification Engineering Co., Ltd. 26,407 26,407
Accounts receivable CCCC-SHEC Railway Engineering Co., Ltd. 25,688 656,275
Accounts receivable CCCC - SHEC Railway Construction Co., Ltd. 23,980 23,980
Accounts receivable Zhenhua Marine Energy (HK) Co., Ltd. 17,872,453
Accounts receivable CCCC Tianjin Industry and Trade Co., Ltd. 13,863,129
Accounts receivable CCCC-SHEC Fifth Highway Engineering Co., Ltd. 5,031,955
The First Construction Company of CCCC Second Harbor
Accounts receivable 3,750,000
Engineering Co., Ltd.
Accounts receivable CCCC - SHEC Second Highway Engineering Co., Ltd. 2,479,578
Accounts receivable Sichuan Road & Bridge Group Co., Ltd. 2,156,724
Accounts receivable Shanghai Interlink Road & Bridge Engineering Co., Ltd. 670,488
Accounts receivable CCCC Chenzhou Road Construction Machinery Co., Ltd. 531,658
No.2 Engineering Co., Ltd. of CCCC First Harbor Engineering
Accounts receivable 200,000
Co., Ltd.
Accounts receivable CCCC Guidu Highway Construction Co., Ltd. 63,951
Chongqing Yongjiang Expressway I nvestment and
Accounts receivable 36,257
Construction Co., Ltd. of FHEC of CCCC
Accounts receivable ZPMC ISTANBUL LIMAN MAKINALARI Tic A.S. 3,482
Receivables financing CCCC Second Harbor Engineering Co., Ltd. 114,920,000
Receivables financing CCCC Third Harbor Engineering Co., Ltd. 66,286,052 52,661,823
Receivables financing CCCC Third Highway Engineering Co., Ltd. 21,321,963 38,000,000
Receivables financing CCCC Second Highway Engineering Co., Ltd. 20,179,428 34,367,325
Receivables financing CCCC Electrical and Mechanical Engineering Co., Ltd. 12,200,000
Receivables financing Road & Bridge International Co., Ltd. 11,474,949 22,230,347
Receivables financing CCCC First Harbor Engineering Co., Ltd. 9,254,850 51,766,155
Installation Engineering Co., Ltd. of CCCC First Harbor
Receivables financing 2,000,000 63,000
Engineering Co., Ltd.
Receivables financing CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. 1,432,619
Receivables financing CCCC Tianjin Dredging Co., Ltd. 1,150,000
Receivables financing CCCC Third Harbor Consultants Co., Ltd. 300,000
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering
Receivables financing 10,537,271
Co., Ltd.
ANNUAL REPORT 2023
Balance as at December 31, Balance as at December 31,
2023 2022
Item Related parties
Provision for Provision for
Book balance Book balance
bad debt bad debt
Receivables financing CCCC Tianjin Industry and Trade Co., Ltd. 3,498,829
Receivables financing CCCC First Highway Electrification Engineering Co., Ltd. 300,000
Receivables financing CCCC-SHEC Railway Engineering Co., Ltd. 202,412
Other receivables Zhenhua Marine Energy (HK) Co., Ltd. 164,124,678 164,124,678 164,124,678 164,124,678
Other receivables CCCC Third Harbor Engineering Co., Ltd. 52,107,498 34,863,137
Other receivables CCCC Second Harbor Engineering Co., Ltd. 37,375,694 26,080,121
Other receivables China Road & Bridge Corporation 29,228,919 32,174,052
Other receivables Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 20,513,157 25,033,390
Other receivables CCCC First Highway Engineering Co., Ltd. 14,984,890
Other receivables CCCC Third Highway Engineering Co., Ltd. 13,346,537 11,671,593
Other receivables Road & Bridge International Co., Ltd. 10,311,354 10,311,354
Other receivables CCCC First Harbor Engineering Co., Ltd. 8,548,931 40,331,081
Other receivables CCCC Xiongan Financial Leasing Co., Ltd. 6,000,000 6,000,000
Other receivables China Communications Construction Company Ltd. 4,907,934 3,782,930
Other receivables CCCC Asset Management Co., Ltd. 3,832,500
Other receivables CCCC Second Highway Engineering Co., Ltd. 2,246,038 1,611,506
No.4 Engineering Co., Ltd. of CCCC Second Harbor
Other receivables 2,116,091 2,116,091
Engineering Co., Ltd.
Other receivables CCCC Yancheng Construction Development Co., Ltd. 1,739,474 1,600,000
Other receivables CCCG 1,356,800 1,356,800
Other receivables CCCC Fourth Harbor Consultants Co., Ltd. 992,576 992,576
Other receivables CCCC Xiongan Urban Construction Development Co., Ltd. 618,022 550,000
Other receivables CCCC First Harbor Consultants Co., Ltd. 543,764 2,602,610
Other receivables CCCC Shanghai Dredging Co., Ltd. 219,010
Installation Engineering Co., Ltd. of CCCC First Harbor
Other receivables 200,000
Engineering Co., Ltd.
Other receivables CCCC East China Investment Co., Ltd. 194,959 194,959
Other receivables China Harbour Engineering Co., Ltd. 175,352 138,462
Other receivables CCCC Northeast Investment Co., Ltd. 152,002 152,002
Other receivables Shanghai Jiangtian Industrial Co., Ltd. 77,552 77,552
Other receivables CCCC-SHEC First Highway Engineering Co., Ltd. 50,000
ZOSG-OTL Marine Contractor Limited (formerly known as:
Other receivables 44,536 49,038
ZPMC-OTL Marine Contractor Limited)
Other receivables ZPMC Southeast Asia Pte. Ltd 11,159 15,165
Other receivables ZPMC Changzhou Coatings Co., Ltd. 1,873
Jiujiang Education Consulting Co., Ltd. of CCCC Second
Other receivables 1,800 1,800
Harbor Engineering Co., Ltd.
CCCC National Engineering Research Center of Dredging
Other receivables 12,167,079
Technology and Equipment Co., Ltd.
Other receivables CCCC Electrical and Mechanical Engineering Co., Ltd. 11,230,777
Other receivables CCCC Fourth Harbor Engineering Co., Ltd. 3,117,699
Other receivables CCCC - SHEC Second Highway Engineering Co., Ltd. 1,623,738
No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering
Other receivables 1,327,942
Co., Ltd.
Other receivables CCCC Financial Leasing Co., Ltd. 206,389
Other receivables ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 178,642
No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering
Advances to suppliers 62,227,167
Co., Ltd.
Advances to suppliers Road & Bridge East China Engineering Co., Ltd. 43,384,665 24,847,917
Section X Financial Report
Balance as at December 31, Balance as at December 31,
2023 2022
Item Related parties
Provision for Provision for
Book balance Book balance
bad debt bad debt
Advances to suppliers CCCC Shanghai Equipment Engineering Co., Ltd. 22,468,345
CCCC National Engineering Research Center of Dredging
Advances to suppliers 16,280,427
Technology and Equipment Co., Ltd.
Advances to suppliers First Highway Engineering Group Co., Ltd. 3,495,244
Advances to suppliers CCCC Third Highway Engineering Co., Ltd. 2,000,000
Installation Engineering Co., Ltd. of CCCC First Harbor
Advances to suppliers 1,447,632
Engineering Co., Ltd.
Advances to suppliers CCCC Second Highway Consultants Co., Ltd. 850,000
Advances to suppliers CCCC Third Harbor Engineering Co., Ltd. 703,769
Advances to suppliers CCCC Third Harbor Consultants Co., Ltd. 444,000 10,651,759
Advances to suppliers CCCC Worldcom (Chongqing) Heavy Industries Co., Ltd. 385,568 385,568
Advances to suppliers CCCC Xiongan Financial Leasing Co., Ltd. 30,000
Advances to suppliers CCCC Ocean Investment Holding Co., Ltd. (Consolidated) 15,200
Advances to suppliers CCCC Dredging (Group) Co., Ltd. 7,000
Advances to suppliers CCCC Industrial Investment Holding Company Ltd. 4,000
Advances to suppliers CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch 2,000 2,000
Advances to suppliers CCCC Second Harbor Engineering Co., Ltd. 800 600
Advances to suppliers CCCC Second Highway Engineering Co., Ltd. 500
Advances to suppliers CCCC First Highway Engineering Co., Ltd. 16,625,967
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth
Advances to suppliers 7,000,000
Harbor Engineering Co., Ltd.
Advances to suppliers CCCC Fourth Harbor Consultants Co., Ltd. 4,095,000
Advances to suppliers China Harbour Engineering Co., Ltd. 5,000
Contract assets CCCC Second Harbor Engineering Co., Ltd. 56,867,363 30,082,851
Contract assets CCCC First Harbor Engineering Co., Ltd. 30,267,918 62,352,928
Contract assets China Harbour Engineering Co., Ltd. 19,376,142
Contract assets CCCC Third Harbor Engineering Co., Ltd. 12,017,553 3,004,388
Contract assets Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 9,532,053 605,354,047
CCCC National Engineering Research Center of Dredging
Contract assets 6,075,449
Technology and Equipment Co., Ltd.
Contract assets China Road & Bridge Corporation 4,352,722 22,477,343
Contract assets CCCC Fourth Harbor Engineering Co., Ltd. 2,252,212
Contract assets CCCC Second Highway Engineering Co., Ltd. 1,287,589 21,831,279
Contract assets CCCC Yancheng Construction Development Co., Ltd. 315,887
Contract assets CCCC Haifeng Wind Power Development Co., Ltd. 48,181,663
Contract assets CCCC Third Highway Engineering Co., Ltd. 15,018,912
No.4 Engineering Co., Ltd. of CCCC Second Harbor
Contract assets 9,311,494
Engineering Co., Ltd.
Contract assets CCCC - SHEC Second Highway Engineering Co., Ltd. 4,497,454
Contract assets Sichuan Road & Bridge Group Co., Ltd. 2,297,016
Other non-current
China Harbour Engineering Co., Ltd. 76,599,401 16,115,040
assets
Other non-current
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 8,472,784
assets
Other non-current No.4 Engineering Co., Ltd. of CCCC Second Harbor
4,654,092
assets Engineering Co., Ltd.
Other non-current
CCCC Fourth Harbor Engineering Co., Ltd. 2,252,212
assets
ANNUAL REPORT 2023
(2). Payables
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Ending book Beginning book
Item Related parties
balance balance
Accounts payable CCCC Third Highway Engineering Co., Ltd. 538,682,121 250,106,814
Accounts payable CCCC Third Harbor Engineering Co., Ltd. 312,621,861 331,634,582
Accounts payable CCCC Second Harbor Engineering Co., Ltd. 153,189,332 74,160,316
Accounts payable CCCC Construction Group Co., Ltd. 98,897,141 101,897,141
Accounts payable CCCC First Highway Engineering Co., Ltd. 61,474,291 259,160,857
Accounts payable CCCC Tianjin Dredging Co., Ltd. 60,039,096 33,225,252
Accounts payable ZPMC Changzhou Coatings Co., Ltd. 50,049,657 43,778,590
Accounts payable Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 41,798,360 450,000
Accounts payable CCCC Shanghai Equipment Engineering Co., Ltd. 38,790,362 83,614,468
Accounts payable First Highway Engineering Group Co., Ltd. 37,134,294 -
Accounts payable CCCC Capital Holdings Co., Ltd. 37,062,693 -
Accounts payable No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 34,087,113 16,878,682
Accounts payable Road & Bridge East China Engineering Co., Ltd. 22,984,931 22,984,931
Accounts payable ZPMC Southeast Asia Pte. Ltd 18,262,858 16,657,949
Accounts payable CNPC & CCCC Petroleum Sales Co., Ltd. 17,414,765 18,903,424
Accounts payable CCCC Second Highway Consultants Co., Ltd. 12,853,275 20,038,332
Accounts payable CCCC Water Transportation Planning and Design Institute Co., Ltd. 12,388,149 5,907,891
Accounts payable Shanghai Communications Construction Contracting Co., Ltd. 12,342,974 21,494,837
Accounts payable CCCC Shanghai Dredging Co., Ltd. 12,221,713 20,295,398
Accounts payable No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. 8,581,250 8,581,250
Accounts payable No.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 7,815,018 7,815,018
Accounts payable China Road & Bridge Corporation 7,101,342 -
Accounts payable CCCC Fourth Harbor Consultants Co., Ltd. 4,100,000 -
Accounts payable China Communications Information Technology Group Co., Ltd. 4,099,840 -
Accounts payable CCCC Third Harbor Consultants Co., Ltd. 2,318,868 -
Accounts payable CCCC First Harbor Engineering Co., Ltd. 2,298,606 6,498,606
Accounts payable CCCC (Xiamen) Information Co., Ltd 2,252,376 -
Accounts payable CCCC Shanghai Channel Equipment Industry Co., Ltd. 1,500,166 594,418
Accounts payable CCCC Photovoltaic Technology Co., Ltd. 1,265,147 -
Accounts payable Shanghai Jiangtian Industrial Co., Ltd. 846,373 4,419,111
Accounts payable CCCC Urban Operation Management Co., Ltd. 515,191 -
Accounts payable Chongqing Yongjiang Expressway Investment and Construction Co., Ltd. of FHEC of CCCC 323,990 323,990
Accounts payable CCCC First Harbor Consultants Co., Ltd. 302,041 7,631,212
Accounts payable Chuwa Bussan Co., Ltd. 258,445 -
Accounts payable Xiamen Jiehang Engineering Testing Technology Co., Ltd. 256,536 256,536
Accounts payable ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 201,479 11,691
Accounts payable CCCC Second Highway Engineering Co., Ltd. 121,494 121,494
Accounts payable CCCC Xingyu Technology Co., Ltd 80,500 -
Accounts payable Friede & Goldman, Llc. 69,331 -
Accounts payable Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd. 40,000 14,280,000
Accounts payable Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 33,849 33,849
Accounts payable Shanghai Zhensha Longfu Machinery Co., Ltd. 6,751,252
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.,
Accounts payable 3,962,714
Ltd.
Accounts payable Zhenhua (Singapore) Engineering Co., Ltd. 9,774
Notes payable CCCC Shanghai Equipment Engineering Co., Ltd. 94,321,451 106,040,000
Section X Financial Report
Ending book Beginning book
Item Related parties
balance balance
Notes payable ZPMC Changzhou Coatings Co., Ltd. 25,611,390 12,215,422
Notes payable CCCC Third Harbor Consultants Co., Ltd. 444,000
Contract liabilities CCCC Third Harbor Engineering Co., Ltd. 434,880,751 197,449,765
Contract liabilities CCCC Electrical and Mechanical Engineering Co., Ltd. 261,521,126 -
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.,
Contract liabilities 227,465,345 -
Ltd.
Contract liabilities China Harbour Engineering Co., Ltd. 201,398,971 92,144,941
Contract liabilities CCCC Haifeng Wind Power Development Co., Ltd. 119,118,961 -
Contract liabilities Road & Bridge International Co., Ltd. 112,630,074 80,598,342
Contract liabilities Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 84,539,773 125,675,111
Contract liabilities China Road & Bridge Corporation 36,136,025 28,615,217
Contract liabilities CCCC Yancheng Construction Development Co., Ltd. 13,987,039 19,370,518
Contract liabilities CCCC Second Harbor Engineering Co., Ltd. 11,504,425 -
Contract liabilities Zhenhua Engineering Co., Ltd. 11,480,886 11,480,886
Contract liabilities CCCC First Harbor Engineering Co., Ltd. 7,079,646 18,506,940
Contract liabilities Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd. 2,600,000 -
Contract liabilities CCCC-SHEC Fifth Highway Engineering Co., Ltd. 2,326,834 -
Contract liabilities Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 476,839 -
Contract liabilities China Communications Construction Company Ltd. 399,000 644,250
Contract liabilities CCCC Financial Leasing Co., Ltd. 389,878 -
Contract liabilities ZPMC Changzhou Coatings Co., Ltd. 307,315 -
Contract liabilities ZPMC Southeast Asia Pte. Ltd 299,053 336,651
Contract liabilities Xing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 200,000 200,000
Contract liabilities CCCC Shanghai Equipment Engineering Co., Ltd. 100,000 100,000
Contract liabilities No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 170,288,676
Contract liabilities CCCC Third Highway Engineering Co., Ltd. 15,160,936
Contract liabilities CCCC-SHEC First Highway Engineering Co., Ltd. 10,757,478
Contract liabilities No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 3,000,000
Contract liabilities CCCC Tianjin Dredging Co., Ltd. 1,190,280
Contract liabilities CCCC Tianjin Industry and Trade Co., Ltd. 1,158,633
Contract liabilities CCCC Second Highway Engineering Co., Ltd. 516,117
Contract liabilities No.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. 248,624
Contract liabilities Friede & Goldman, Llc. 67,174
Contract liabilities China Highway Vehicle & Machinery Co., Ltd. 200
Other payables CCCC Tianjin Dredging Co., Ltd. 2,156,170 51,129
Other payables Zhenhua Marine Energy (HK) Co., Ltd. 2,047,861 -
Other payables CCCG 1,600,544 1,599,944
Other payables Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 1,001,393 -
Other payables CCCC Electrical and Mechanical Engineering Co., Ltd. 665,174 -
Other payables No.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. 657,337 657,337
Other payables CCCC Dredging (Group) Co., Ltd. 582,966 2,000,000
Other payables CCCC Third Highway Engineering Co., Ltd. 554,719 743,216
Other payables CCCC Construction Group Co., Ltd. 506,519 -
Other payables ZPMC Changzhou Coatings Co., Ltd. 497,600 57,600
Other payables CCCC Xiongan Urban Construction Development Co., Ltd. 330,000 -
Other payables Road & Bridge International Co., Ltd. 224,574 1,600,000
Other payables CCCC Urban Operation Management Co., Ltd. 202,626 -
Other payables China Communications Construction Company Ltd. 194,979 -
Other payables Shanghai Jiangtian Industrial Co., Ltd. 150,000 5,571,886
ANNUAL REPORT 2023
Ending book Beginning book
Item Related parties
balance balance
Other payables CCCC Shanghai Equipment Engineering Co., Ltd. 100,000 107,000
Other payables Harbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd. 85,685 11,434
Other payables Shanghai China Communications Water Transportation Design & Research Co., Ltd. 81,000 15,200
Other payables Xiamen Jiehang Engineering Testing Technology Co., Ltd. 64,237 64,237
Other payables CCCC Third Harbor Consultants Co., Ltd. 55,600 -
Other payables Tianjin Harbour Engineering Quality Inspection Center Co., Ltd. 49,000 49,000
Other payables CCCC Xingyu Technology Co., Ltd 8,000 -
Other payables CCCC Third Harbor Engineering Co., Ltd. 3,350 51,664
Other payables CCCC Water Transportation Planning and Design Institute Co., Ltd. 3,000 -
Other payables CCCC Shanghai Channel Equipment Industry Co., Ltd. 2,000 -
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.,
Other payables 100 100
Ltd.
Other payables No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 1,327,942
Other payables CCCC (Zhengzhou) Construction Co., Ltd. 600,000
Other payables CCCC Second Highway Engineering Co., Ltd. 200,000
Other payables Shanghai Zhensha Longfu Machinery Co., Ltd. 170,000
Other payables CCCC Leasing (Shandong) Co., Ltd. 20,000
Other payables DaHua Technology Co., Ltd. 10,000
Short-term
CCCC Xiongan Financial Leasing Co., Ltd. 110,000,000 20,000,000
borrowings
Short-term
CCCC Finance Company Ltd. 48,869,847
borrowings
Non-current liabilities
CCCC Finance Company Ltd. 100,061,111
due within one year
Non-current liabilities
CCCC Xiongan Financial Leasing Co., Ltd. 117,003,704
due within one year
Long-term payables CCCC Dredging (Group) Co., Ltd. 262,957,217 -
Long-term payables CCCC Second Harbor Engineering Co., Ltd. 84,569,030 137,123,967
Long-term payables CCCC Construction Group Co., Ltd. 39,558,526 39,558,526
Long-term payables CCCC Third Harbor Engineering Co., Ltd. 37,952,715 34,665,923
Long-term payables No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. 9,520,885 9,520,885
Long-term payables First Highway Engineering Group Co., Ltd. 2,547,110 -
Long-term payables CCCC Second Highway Engineering Co., Ltd. 125,862 -
Long-term payables CCCC Tianjin Dredging Co., Ltd. 243,811,149
Long-term payables CCCC Xiongan Financial Leasing Co., Ltd. 33,555,556
Long-term payables CCCC - SHEC Second Highway Engineering Co., Ltd. 125,862
Long-term borrowings CCCC Finance Company Ltd. 544,332,445 644,393,556
Long-term borrowings CCCC Xiongan Financial Leasing Co., Ltd. 25,168,519
(3). Other projects
Applicable √ Not Applicable
7. Commitments with related parties
√ Applicable Not Applicable
Rendering of services for the Group by related parties
2023 2022
CCCC Third Highway Engineering Co., Ltd. 1,151,555,816 -
CCCC Third Harbor Engineering Co., Ltd. 617,870,543 761,097,020
CCCC First Highway Fifth Engineering Co., Ltd. 388,366,210 388,366,210
Section X Financial Report
2023 2022
No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. 305,931,400 305,931,400
CCCC Tianjin Dredging Co., Ltd. 283,930,853 393,318,809
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 56,568,996 56,568,996
CCCC First Highway Engineering Co., Ltd. 35,569,533 185,310,227
Shanghai Communications Construction Contracting Co., Ltd. 2,631,313 2,631,313
CCCC Tunnel Engineering Company Limited 158,070 158,070
Total 2,842,582,734 2,093,382,045
Sale of products, provision of labor or leasing services to related parties
2023 2022
CCCC Second Harbor Engineering Co., Ltd. 1,302,245,342 -
CCCC Electrical and Mechanical Engineering Co., Ltd. 800,640,000 -
China Harbour Engineering Co., Ltd. 486,696,286 55,177,980
CCCC Haifeng Wind Power Development Co., Ltd. 434,985,212 942,273,538
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 257,943,782 25,950,000
CCCC Third Highway Engineering Co., Ltd. 249,164,992 -
CCCC Third Harbor Engineering Co., Ltd. 226,800,000 145,655,357
CCCC National Engineering Research Center of Dredging Technology and
211,612,759 528,800,000
Equipment Co., Ltd.
China Road & Bridge Corporation 17,551,510 34,957,678
Road & Bridge International Co., Ltd. - 241,720,000
CCCC First Harbor Engineering Co., Ltd. - 224,844,126
CCCC Second Highway Engineering Co., Ltd. - 154,280,200
CCCC-SHEC First Highway Engineering Co., Ltd. - 36,000,000
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. - 27,783,186
CCCC Fourth Harbor Engineering Co., Ltd. - 5,855,752
China Communications Construction Company Ltd. - 3,681,416
Total 3,987,639,883 2,426,979,233
8. Others
√ Applicable Not Applicable
Monetary funds deposited in the related parties
2023 2022
CCCC Finance Company Ltd. 1,600,000,000 435,568
XV. Share-based payment
1. Various equity instruments
Applicable √ Not Applicable
Stock 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 REPORT 2023
4. Share payment expenses for the current period
Applicable √ Not Applicable
5. Modification and termination of share-based payment
Applicable √ Not Applicable
6. Others
Applicable √ Not Applicable
XVI. Commitments and contingencies
1. Significant commitments
√ Applicable Not Applicable
Significant external commitments, nature and amount on the balance sheet date
Matters related to capital expenditure commitments
Commitments related to capital expenditure contracted for but not provided in the financial statements as at the balance
sheet date:
2023 2022
Buildings and constructions, machinery equipment 589,701,542 569,759,423
L/C commitments
The 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). Significant contingencies on the balance sheet date
Applicable √ Not Applicable
(2). If the company has no significant contingencies to be disclosed, it shall also explain:
Applicable √ Not Applicable
3. Others
Applicable √ Not Applicable
XVII. Post balance sheet events
1. Significant non-adjustment events
Applicable √ Not Applicable
2. Profit distribution
Applicable √ Not Applicable
3. Sales return
√ Applicable Not Applicable
None
Section X Financial Report
4. Description of other post balance sheet events
Applicable √ Not Applicable
XVIII. Other significant 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 Applicable
The Group determines operating segments based on internal organization structure, management requirements and
internal reporting system, determines reporting segments based on operating segments, and disclose the information of
the segments.
Operating segment refers to the component part of the Group that meet the following requirements: (1) it can generate
income and expenses in daily activities; (2) the management of the Group can regularly evaluate its operating results
to determine its allocation of resources and to evaluate its performance; (3) the Group is able to obtain its accounting
information regarding financial position, operating results and cash flows, etc. If two or more operating segments have
similar economic characteristics, and have met a certain condition, they will be merged into one operating segment.
The Group identified the business as an operating segment for analysis and assessment based on internal organization
structure, management requirement and internal report system.
(2). Financial information of reporting segment
Applicable √ Not Applicable
ANNUAL REPORT 2023
(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 Applicable
Product and labor information
Income from external transactions
2023 2022
Port machinery 21,236,864,182 20,731,800,489
Heavy equipment 5,422,715,054 3,085,509,098
Steel structure and related income 3,166,048,520 2,731,132,322
Engineering construction projects 1,528,578,218 1,613,996,721
Shipping and lifting services 1,209,116,050 1,719,708,160
Lease income 296,335,872 225,960,519
Sales of materials and others 73,605,906 83,685,678
Total 32,933,263,802 30,191,792,987
Geographic information
Income from external transactions
2023 2022
Chinese Mainland 18,521,970,127 16,017,286,405
Asia (excluding Chinese Mainland) 6,029,644,681 7,867,109,144
North America 2,386,479,118 2,181,504,594
Africa 2,032,771,314 1,368,578,664
Europe 1,096,740,543 877,042,956
South America 1,183,625,912 600,144,518
Chinese Mainland (export sales) 964,530,587 968,104,389
Oceania 717,501,520 312,022,317
Total 32,933,263,802 30,191,792,987
The income from external transaction is attributable to where the customer is located.
Total non-current assets
2023 2022
Chinese Mainland 19,018,972,291 19,253,173,359
Asia (excluding Chinese Mainland) 10,697,184,427 10,140,996,412
Others 30,226,859 111,020,668
Total 29,746,383,577 29,505,190,439
The non-current assets are attributable to where they are located, excluding financial assets, long-term equity investment,
goodwill, deferred income tax assets and other non-current assets.
7. Other significant transactions and events with impacts on investors' decisions
√ Applicable Not Applicable
Section X Financial Report
Lease
(1). As a lessor
2023 2022
Interest expense of lease liabilities 1,313,980 615,840
Short-term lease expenses with simplified treatment
217,888,742 104,487,307
included in the current profit or loss
Total cash outflows related to leases 259,695,514 122,403,881
Cash outflow from leaseback 249,669,758 242,328,806
The leased assets leased by the Group include buildings and constructions, machinery and equipment, transportation
equipment and other equipment used in the course of operations, and the lease term is usually 1-3 years. The lease
contract usually stipulates that the Group cannot sublet the leased assets. A few lease contracts include the option of
renewal.
Leaseback
The Group usually enters into leaseback transactions for the purchase price of large ships or equipment, where the
transfer of the assets is not a sale. The Group continues to recognize the transferred assets together with a financial
liability equal to the transfer income. The Group takes such leaseback transactions as mortgage loans for accounting
treatment. The Group makes annual leaseback financing payments to the finance leasing company in accordance with
the terms of the contract.
Other lease information
Right-of-use assets are detailed in Note VII (25). The simplified treatment of short-term lease and low-value assets lease is
detailed in Note V (34). The lease liabilities are detailed in Note VII (47).
(2). As a lessor
Operating lease
The profit or loss related to operating leases is presented as follows:
2023 2022
Lease income 296,335,872 225,960,519
According to the lease agreement signed with the lessee, the undiscounted minimum lease receipts are as follows:
2023 2022
Within 1 year (including 1 year) 291,022,650 239,242,941
1 to 2 years (including 2 years) 222,198,493 132,035,513
2-3 years (including 3 years) 113,076,268 42,528,101
3 to 4 years (including 4 years) 105,432,422 19,751,071
4 to 5 years (including 5 years) 55,144,117 85,516,755
Over 5 years 54,066,921 828,273
Total 840,940,871 519,902,654
8. Others
Applicable √ Not Applicable
ANNUAL REPORT 2023
XIX. Notes to main items of the financial statements of the parent company
1. Accounts receivable
(1). Disclosure by aging
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Aging Ending book balance Begining book balance
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 17,506,406,564 15,808,520,882
1-2 years 1,298,787,513 580,444,164
2-3 years 524,496,529 1,854,369,394
Over 3 years
3-4 years 873,709,763 666,023,611
4-5 years 619,231,498 83,902,642
Over 5 years 1,195,350,563 1,126,924,513
Total 22,017,982,430 20,120,185,206
(2). Disclosure by bad debt calculation method
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Proportion
Proportion of Book value Proportion of Book value
Amount Amount Amount Amount
(%) provision (%) provision
(%) (%)
Provision for
bad debts
accrued on 908,640,230 4 837,390,899 92 71,249,331 896,540,136 4 825,285,390 92 71,254,746
an individual
basis
Including:
Provision for
bad debts by 21,109,342,200 96 1,494,832,380 7 19,614,509,820 19,223,645,070 96 1,280,658,766 7 17,942,986,304
portfolio
Including:
Total 22,017,982,430 / 2,332,223,279 / 19,685,759,151 20,120,185,206 / 2,105,944,156 / 18,014,241,050
Individual provision for bad debts:
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
December 31, 2023
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Accounts receivable 1 474,995,540 403,746,209 85 Counterparty financial shortage
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Basis for division of each stage and proportion of provision for bad debt
None
Explanation of significant changes in the book balance of accounts receivable with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
(3). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
Other description
None
(4). Accounts receivable actually written off in the current period
Applicable √ Not Applicable
Write-off of important accounts receivable
Applicable √ Not Applicable
Explanation of write-off 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: CNY
Balance of accounts Ending balance of Proportion in total ending Balance of provision for
Ending balance of
Name receivable at the end accounts receivable and balance of accounts receivable bad debts as at December
contract assets
of the period contract assets and contract assets (%) 31, 2023
Client 1 8,351,833,500 8,351,833,500 33
Client 2 3,035,336,431 3,035,336,431 12
Client 3 1,152,012,773 1,152,012,773 5
Client 4 890,511,351 890,511,351 4
Client 5 772,025,403 772,025,403 3
Total 14,201,719,458 14,201,719,458 57
Other description
None
Other description
√ Applicable Not Applicable
Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
2023 2022
Expected credit
Book balance of Estimated credit Expected credit loss for Book balance of Estimated credit
loss for the entire
estimated default loss ratio (%) the entire duration estimated default loss ratio (%)
duration
Within 1 year 17,461,085,304 1 90,249,445 15,806,393,464 1 88,542,607
1-2 years 1,298,747,013 11 142,435,627 580,444,164 14 79,426,723
2-3 years 524,496,529 31 165,173,740 1,744,608,256 27 464,722,489
ANNUAL REPORT 2023
2023 2022
Expected credit
Book balance of Estimated credit Expected credit loss for Book balance of Estimated credit
loss for the entire
estimated default loss ratio (%) the entire duration estimated default loss ratio (%)
duration
3-4 years 763,948,625 52 399,145,777 223,238,665 38 85,019,638
4-5 years 215,541,551 49 105,860,594 69,671,842 58 40,507,107
Over 5 years 845,523,178 70 591,967,197 799,288,679 65 522,440,202
Total 21,109,342,200 1,494,832,380 19,223,645,070 1,280,658,766
Changes in the provision for bad debts of accounts receivable are as follows:
January 1, 2023 Provision in 2023 Recovery or reversal in 2023 Write-off in 2023 December 31, 2023
2023 2,105,944,156 675,787,609 (449,508,486) 2,332,223,279
2022 1,888,796,590 677,030,281 (425,803,410) (34,079,305) 2,105,944,156
2. Other receivables
Item presentation
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item December 31, 2023 December 31, 2022
Interest receivable
Dividends receivable 315,789,096
Other receivables 3,373,418,359 1,364,774,518
Total 3,373,418,359 1,680,563,614
Other description:
√ Applicable Not Applicable
None
Interest receivable
(1). Classification of interest receivable
Applicable √ Not Applicable
(2). Significant overdue interest
Applicable √ Not Applicable
(3). Provision for bad debts
Applicable √ Not Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Basis for division of each stage and proportion of provision for bad debt
None
Section X Financial Report
Explanation of significant changes in the book balance of interests receivable with changes in provisions for losses in the
current period:
Applicable √ Not Applicable
(5). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
Other description:
None
(6). Interests receivable actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of interests receivable
Applicable √ Not Applicable
Note to write-off:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
Dividends receivable
(7). Dividends receivable
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Project (or invested entity) December 31, 2023 December 31, 2022
Nanjing Ninggao New Channel Construction Co., Ltd. 315,789,096
Total 315,789,096
(8). Significant dividends receivable aging over 1 year
Applicable √ Not Applicable
(9). Disclosure by bad debt calculation method
Applicable √ Not Applicable
Individual provision for bad debts:
Applicable √ Not Applicable
Description of individual provision for bad debts:
Applicable √ Not Applicable
Provision 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 Applicable
Basis for division of each stage and proportion of provision for bad debt
None
Explanation of significant changes in the book balance of dividends receivable with loss provision changes in the current
ANNUAL REPORT 2023
period:
Applicable √ Not Applicable
(11). Provision for bad debts
Applicable √ Not Applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not Applicable
Other description: None
(12). Dividends receivable actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of dividends receivables
Applicable √ Not Applicable
Note to write-off:
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
Other receivables
(13). Disclosure by aging
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Aging December 31, 2023 December 31, 2022
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 3,130,089,916 1,337,834,798
1-2 years 269,083,428 41,098,467
2-3 years 20,451,164 6,159,589
Over 3 years
3-4 years 475,947 3,740,605
4-5 years 214,964 199,800
Over 5 years 8,809,617 9,610,964
Total 3,429,125,036 1,398,644,223
(14). Classification by nature of funds
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Nature of funds December 31, 2023 December 31, 2022
Current accounts between subsidiaries 2,513,480,020 671,021,717
Taxes on outstanding payment receivable 748,596,070 332,163,971
Lease payment receivable 48,652,497 41,353,252
Customs deposits 47,542,730 267,023,626
Bid and performance bonds 43,273,004 50,292,193
Money on call of on-site product service 14,199,697 21,959,592
Staff loan receivable 12,300,811 13,295,583
Others 1,080,207 1,534,289
Total 3,429,125,036 1,398,644,223
Section X Financial Report
(15). Other receivables
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Provision for bad debt Expected credit loss for the Expected credit loss for Total
Expected credit losses
entire duration (no credit the entire duration (credit
over the next 12 months
impairment) impairment occurred)
Balance as of January 1, 2023 27,969,617 5,900,088 33,869,705
Balance on January 1, 2023 is in the period
Transferred to Stage II
Transferred to Stage III
Write-back to Stage II
Write-back to Stage I
Provision in the current period 21,836,972 21,836,972
Reversal in the current period
Write-off in the current period
Charge-off in the current period
Other changes
Balance as of December 31, 2023 49,806,589 5,900,088 55,706,677
Basis for division of each stage and proportion of provision for bad debt
None
Description of significant changes in book balance of other receivables with changes in loss provision in the current
period:
Applicable √ Not Applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial
instruments has increased significantly:
Applicable √ Not Applicable
(16). Provision for bad debts
Applicable √ Not Applicable
Including the reversed or recovered provision for bad debts with significant amount in the current period:
Applicable √ Not Applicable
Other description:
None
(17). Other receivables actually written off in the current period
Applicable √ Not Applicable
Including important notes for write-off of other receivables:
Applicable √ Not Applicable
Explanation of write-off of other receivables:
Applicable √ Not Applicable
(18). Top 5 other receivables in terms of ending balance presented by debtor
√ Applicable Not Applicable
ANNUAL REPORT 2023
Unit: Yuan Currency: CNY
Proportion in the Balance of provision
December 31,
Name total balance of other Nature Aging for bad debts as at
2022
receivables (%) December 31, 2022
Other receivables 1 1,743,797,359 51 Transactions with subsidiaries Within 1 year
Other receivables 2 437,759,566 13 Taxes to be settled Within 1 year
Other receivables 3 342,193,351 10 Transactions with subsidiaries Within 1 year
Other receivables 4 160,954,282 4 Transactions with subsidiaries Within 1 year
Other receivables 5 102,561,642 3 Transactions with subsidiaries Within 1 year
Total 2,787,266,200 81 / /
(19). Presented in other receivables due to centralized fund management
Applicable √ Not Applicable
Other description:
√ Applicable Not Applicable
2023
Book balance Provision for bad debt
Accruing Book value
Amount Proportion(%) Amount
proportion (%)
Provision for bad debts accrued on an
5,900,088 5,900,088 100
individual basis
According to the portfolio of the credit risk
3,423,224,948 100 49,806,589 1 3,373,418,359
characteristics Bad debt provision
Total 3,429,125,036 100 55,706,677 2 3,373,418,359
2022
Book balance Provision for bad debt
Accruing Book value
Amount Proportion(%) Amount
proportion (%)
Provision for bad debts accrued on an
5,900,088 5,900,088 100
individual basis
According to the portfolio of the credit risk
1,392,744,135 100 27,969,617 2 1,364,774,518
characteristics Bad debt provision
Total 1,398,644,223 100 33,869,705 2 1,364,774,518
As at December 31, 2023, there were no other significant receivables with provision for bad debts accrued on an
individual basis (2022: nil).
As at December 31, 2023, other receivables with provision for bad debts accrued by portfolio are as follows:
Book balance Provision for impairment Proportion of provision (%)
Within 1 year 3,130,089,917
1 to 2 years 269,083,428 40,362,515 15
2 to 3 years 20,451,164 6,135,349 30
3 to 4 years 475,947 237,974 50
4 to 5 years 214,964 161,223 75
Over 5 years 2,909,528 2,909,528 100
Total 3,423,224,948 49,806,589
3. Long-term equity investments
√ Applicable Not Applicable
Section X Financial Report
Unit: Yuan Currency: CNY
December 31, 2023 December 31, 2022
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in subsidiaries 7,518,092,281 7,518,092,281 7,403,925,081 7,403,925,081
Investment in joint ventures
1,938,669,154 1,938,669,154 1,985,654,163 1,985,654,163
and associates
Total 9,456,761,435 9,456,761,435 9,389,579,244 9,389,579,244
(1). Investment in subsidiaries
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Balance of
Provision for
Increase Decrease provision for
December 31, December 31, impairment
Invested entity in current in current impairment as
2022 2023 in current
period period at December
period
31, 2023
Shanghai Zhenhua Heavy Industries Port Machinery
2,201,086,744 2,201,086,744
General Equipment Co., Ltd.
Nanjing Ninggao New Channel Construction Co., Ltd. 100,000,000 100,000,000
Nantong Zhenhua Heavy Equipment Manufacturing Co.,
2,500,000,000 2,500,000,000
Ltd.
ZPMC Transmission Machinery (Nantong) Co., Ltd. 506,112,853 506,112,853
CCCC Zhenjiang Investment Construction Management
376,438,604 376,438,604
Development Co., Ltd.
ZPMC Qidong Marine Engineering Co., Ltd. 203,000,000 203,000,000
CCCC Liyang Urban Investment and Construction Co., Ltd. 363,000,000 363,000,000
Shanghai Zhenhua Shipping Co., Ltd. 140,260,673 140,260,673
Shanghai Zhenhua Ocean Engineering Service Co., Ltd. 100,000,000 100,000,000
ZPMC Electric Co., Ltd. 50,000,000 50,000,000
CCCC Investment & Development Qidong Co., Ltd. 297,500,000 297,500,000
ZPMC North America Inc. 18,564,520 18,564,520
ZPMC Netherlands Coperatie U.A. 29,434,964 29,434,964
Shanghai Zhenhua Port Machinery Heavy Industries Co.,
9,964,200 9,964,200
Ltd.
ZPMC Machinery Equipment Services Co., Ltd. 7,000,000 7,000,000
ZPMC Lanka Company (Private) Limited 6,183,978 6,183,978
ZPMC Middle East Fze 5,271,120 5,271,120
ZPMC Zhangjiagang Port Machinery Co., Ltd. 4,518,000 4,518,000
ZPMC Limited Liability Company 10,172,070 10,172,070
ZPMC Southeast Asia Holding Pte. Ltd. 12,513,114 12,513,114
ZPMC Engineering Africa (Pty) Ltd. 3,084,000 3,084,000
ZPMC Engineering (India) Private Limited 2,953,200 2,953,200
ZPMC Brazil Servio Portuários LTD. 2,936,771 2,936,771
ZPMC Korea Co., Ltd. 6,398,059 6,398,059
ZPMC UK LD 2,797,921 2,797,921
ZPMC Australia Company (Pty) Limited 2,708,500 2,708,500
CCCC Rudong Construction Development Co., Ltd. 82,510,000 82,510,000
CCCC Yongjia Construction Development Co., Ltd. 224,000,000 57,467,200 281,467,200
CCCC Zhenhua Lvjian Technology (Ningbo) Co., Ltd. 4,000,000 4,000,000
ZPMC Latin America Holding Corporation 3,307,850 3,307,850
ZPMCGmbHHamburg 207,940 207,940
ANNUAL REPORT 2023
Balance of
Provision for
Increase Decrease provision for
December 31, December 31, impairment
Invested entity in current in current impairment as
2022 2023 in current
period period at December
period
31, 2023
ZPMC Fuzhou Offshore Construction Co., Ltd. 10,000,000 10,000,000
CCCC (Dongming) Investment and Construction Co., Ltd. 70,000,000 56,700,000 126,700,000
Xiong’an Zhenhua Co., Ltd. 15,000,000 15,000,000
CCCC Zhenhua Intelligent Parking (Hengyang) Co., Ltd. 33,000,000 33,000,000
Total 7,403,925,081 114,167,200 7,518,092,281
(2). Investment in joint ventures and associates
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Increase/decrease in the current period
Balance of
Profit or Cash provision for
December loss on Adjustment dividends December impairment
Invested entity Changes Provision
31, 2022 Further Reduced investments of other or profit 31, 2023 as at
in other for Others
investment investment under the comprehensive declared December
equity impairment
equity income to be 31, 2023
method distributed
Joint ventures
Jiangsu Longyuan Zhenhua
364,936,081 1,466,212 366,402,293
Marine Engineering Co., Ltd.
ZPMC Mediterranean Liman
Makinalari Ticaret Anonim 396,692 75,782 472,474
Sirketi
Sub-total 365,332,773 1,541,994 366,874,767
Associates
CCCC Financial Leasing Co.,
674,329,533 72,459,680 -816,869 -19,561,335 -104,370,656 622,040,353
Ltd.
CCCC Yancheng Construction
418,516,242 418,516,242
Development Co., Ltd.
CCCC Estate Yixing Co., Ltd. 206,795,481 4,862,637 211,658,118
CCCC South American
194,391,003 -7,397,705 -894,845 186,098,453
Regional Company SARL
China communications
59,980,865 261,190 993,306 61,235,361
Construction USA Inc.
CCCC Photovoltaic Technology
34,819,763 873,713 35,693,476
Co., Ltd.
ZPMC Changzhou Coatings
18,440,159 5,843,354 24,283,513
Co., Ltd.
CCCC Xiongan Urban
Construction Development 7,540,333 32,936 7,573,269
Co., Ltd.
Shanghai Ocean Engineering
Equipment Manufacturing 5,508,011 -812,409 4,695,602
Innovation Center Co., Ltd.
CCCC Marine Engineering &
Technology Research Center
Co., Ltd.
Sub-total 1,620,321,390 76,123,396 -718,408 -19,561,335 -104,370,656 1,571,794,387
Total 1,985,654,163 77,665,390 -718,408 -19,561,335 -104,370,656 1,938,669,154
(3). Impairment test of long-term equity investments
Applicable √ Not Applicable
Other description:
None
Section X Financial Report
4. Operating revenue and operating costs
(1). Operating revenue and operating costs
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary businesses 24,944,448,973 22,516,887,873 23,815,340,356 21,476,119,929
Other business 3,504,598,848 3,307,252,552 2,351,859,784 2,239,174,472
Total 28,449,047,821 25,824,140,425 26,167,200,140 23,715,294,401
(2). Breakdown of operating income and operating cost
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
XXX Division Total
Classification of Contract
Operating revenue Operating costs Operating revenue Operating costs
Type of goods
Port machinery 19,433,781,080 17,125,659,392
Heavy equipment 3,492,739,686 3,484,984,990
Sales of materials and others 3,391,954,282 3,142,003,257
Steel structure and related income 1,941,285,729 1,839,770,354
Lease income 112,644,566 165,249,295
Engineering construction projects 76,642,478 66,473,137
By region of operation
Chinese Mainland 15,498,685,208 14,387,696,155
Asia (excluding Chinese Mainland) 5,267,710,364 4,883,035,106
North America 2,129,425,693 1,883,039,476
Africa 1,976,542,133 1,478,646,158
South America 1,101,504,962 1,014,547,604
Chinese Mainland (export sales) 934,840,666 852,266,376
Europe 832,046,338 758,671,548
Oceania 708,292,457 566,238,002
Market or customer type
Contract type
By time of goods transfer
Transfer at a certain point 23,536,580,616 21,847,398,115
Transfer within a certain period 4,912,467,205 3,976,742,310
By contract term
By sales channel
Total 28,449,047,821 25,824,140,425
Other description:
Applicable √ Not Applicable
(3). Performance obligations
Applicable √ Not Applicable
(4). Apportionment to remaining performance obligations
Applicable √ Not Applicable
ANNUAL REPORT 2023
(5). Major contract changes or major transaction price adjustments
Applicable √ Not Applicable
Other description:
None
5. Investment income
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity investments calculated under cost method 202,022,509 441,136,785
Income from long-term equity investment calculated under the equity method 77,665,390 170,768,840
Investment income from disposal of long-term equity investment -95,166
Investment income from held-for-trading financial assets during the holding period 4,219,685 13,458,094
Dividend income from other equity instrument investment during holding 335,790 335,790
Interest income from debt investment during holding
Interest income from other debt investment during holding
Investment income from disposal of held-for-trading financial assets 34,445,278 5,843
Investment income from disposal of other equity instrument investment
Investment income from disposal of debt investment
Investment income from disposal of other debt investment
Income from debt restructuring
Losses on derecognition of financial assets measured at amortized cost -115,312,416 -20,135,378
Others -11,565,673 -1,455,319
Total 191,810,563 604,019,489
Other description:
None
6. Others
Applicable √ Not Applicable
XX. Supplementary information
1. Items of non-recurring profit or loss in current period
√ Applicable Not Applicable
Unit: Yuan Currency: CNY
Item Amount Remarks
Profit or loss from disposal of non-current assets, including the write-off portion of the provision of asset
79,038,662
impairment
Government subsidies included in current profits and losses except for government subsidies closely
related to the normal operations of the Company, in line with national policies, and obtained according to 107,480,822
determined standards, with a lasting impact on the Company’s profits and losses
Profit or loss from changes in fair value of financial assets and financial liabilities held by non-financial
enterprises and from disposal of financial assets and financial liabilities, except for effective hedging 94,482,602
operations associated with the Company’s normal operations
Capital occupation fees charged to the non-financial enterprises and included in current profit or loss
Profit or loss from the assets entrusted to others for investment or management
Section X Financial Report
Item Amount Remarks
Profit 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
Profit generated when the Company’s investment cost in acquiring the subsidiary, affiliated company and
joint venture is less than the fair value of the recognizable net assets of the invested unit at the time of
acquiring
Current net profit or loss of the subsidiary generated from the business combination under common control
from the beginning of the period to the combination date
Profit or loss from non-monetary assets exchange
Profit or loss from debt reorganization
One-time expenses incurred by the enterprise due to the discontinuation of related business activities, such
as the expenditure of employee resettlement, etc.
One-time impact on the current profit and loss due to adjustments in laws and regulations of taxation and
accounting
Share payment expenses recognized once due to cancellation or modification of equity incentive plans
Profits and losses resulting from changes in the fair value of employee compensation payable after the
exercise date in terms of cash-settled share payments
Profit or loss on changes in fair value of investment property by follow-up measurement in fair value mode
Profits from transactions with obviously unfair transaction prices
Profit 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 items 19,796,255
Other profit or loss items that conform to the definition of non- recurring profit or loss
Less: Affected amount of income tax 45,161,118
Affected amount of minority equity (after tax) 9,804,419
Total 245,832,804
Explanations should be provided to the items not listed in the “Explanatory Announcement on Information Disclosure of
Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss”, but identified as non-recurring profit or
loss items with significant amount by the Company, and the non-recurring profit or loss items listed in the “Explanatory
Announcement on Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or
Loss”, but defined as recurring profit or loss items by the Company.
Applicable √ Not Applicable
Other description:
Applicable √ Not Applicable
2. Return on net assets and earnings per share
√ Applicable Not Applicable
Weighted average rate of Earnings per share
Profit in the reporting period
return on net assets (%) Basic earnings per share Diluted earnings per share
Net profit attributable to ordinary shareholders of the Company 3.37 0.10 0.10
Profits attributable to the company’s common shareholders after
1.74 0.05 0.05
deducting non-recurring profits and losses
3. Differences in accounting data under domestic and overseas accounting standards
Applicable √ Not Applicable
4. Others
Applicable √ Not Applicable
ANNUAL REPORT 2023
Chairman:
Date of reporting approved by the Board of Directors: March 28, 2024
Revision information
Applicable √ Not Applicable
