Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co., Ltd.
Annual Report 2022
CONTENTS
Section I Definitions 03
Section II Company Profile and Principal Financial Indexes 04
Section III Management Discussion and Analysis 08
Section IV Corporate Governance 22
Section V Environmental and Social Responsibility 35
Section VI Important Events 42
Section VII Changes in Shares and Shareholders' Situation 52
Section VIII Preference Shares 56
Section IX Bonds 57
Section X Financial Report 61
Financial statements affixed with the signature and seal of legal
representative, person in charge of accounting work and person in
charge of accounting agency.
Original auditors' report stamped by the accounting firm and signed
List of Reference Documents
and stamped with the certified public accountants.
Original copies of the documents and announcements of the
Company published on the newspaper designated by the CSRC in
the reporting period.
Important Notice
1 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.
2 All directors of the Company are present at the board meeting.
3 Ernst & Young Hua Ming LLP issues the standard audit report without qualified opinion for
the Company.
4 Liu Chengyun, the 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 true,
accurate and complete.
5 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 372 million in
2022. As at December 31, 2022, the undistributed profit of the parent company was
approximately RMB 2.746 billion. The Board of Directors of the Company, taking into
account the Company’s business plan and capital demand in 2023, has prepared a profit
distribution proposal for 2022: neither profit distribution nor transfer of the capital public
reserves into paid-in capital. The profit distribution proposal has yet to be submitted to the
2022 Annual General Meeting of Shareholders for consideration and approval.
6 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.
7 Does the Company have non-operating funds occupied by the holding shareholder and its
related parties?
No
8 Does the Company provide the external guarantees in breach of the stipulated decision-
making procedure?
No
9 Whether more than half of the directors cannot guarantee the authenticity, accuracy and
completeness of the annual report disclosed by the Company?
No
10 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.
11 Others
□Applicable √ Not Applicable
2
2022
Section I Definitions
I. Definitions
The terms used in this report shall be defined as follows, unless otherwise specified:
Definitions of high frequency terms
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
“1” refers to firmly anchoring the goal of building a globally
competitive technology-oriented, management-oriented
and quality-oriented world-class equipment manufacturing
enterprise. “5” refers to working hard on “five types of business”,
continuously consolidating the traditional primary business of port
machinery, offshore engineering and shipping and installation,
accelerating the development of growth business such as
steel structure, offshore wind power, sky parking and so on,
multiplying the after-market services and service innovation,
“1544” overall development strategy Refers to moderately developing the financial investment, making efforts
to explore new businesses with broad prospects and competitive
advantages in the industry. “4” refers to solidly promoting “four
main lines”, continuing to strengthen innovation-driven leadership,
sustaining deepening the enterprise reform, accelerating the
management upgrade and strengthening the Party building.
“4” refers to focusing on improving the “four-thinking” ability,
improving the ability of strategic thinking, improving the ability of
market thinking, improving the ability of innovative thinking, and
improving the ability of risk control thinking.
Reporting period Refers to From Jan. 1, 2022 to Dec. 31, 2022
3
Section II Company Profile and Principal Financial Indexes
1 Company Information
Company name in Chinese 上海振华重工（集团）股份有限公司
Abbreviation of the Company name in Chinese 振华重工
Company name in English SHANGHAI ZHENHUA HEAVY INDUSTRIES CO., LTD.
Abbreviation of the Company name in English ZPMC
Legal representative of the Company Liu Chengyun
2 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
3 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
4 Information disclosure and placement location
Shanghai Securities News, www.cnstock.com
Newspaper and website for disclosure of the annual report
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
4
2022
5 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 -
6 Other relevant information
Name Ernst & Young Hua Ming LLP
Public accounting
Room 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1
firm engaged by the Office address
East Changan Street, Dongcheng District, Beijing
Company (domestic)
Signed by the Accountants Gao Chong, Gu Chengli
7 Main accounting data and financial indexes in recent three years
(I) Main accounting data
Unit: Yuan Currency: CNY
Year-on-year
Main accounting data 2022 2021 2020
change (%)
Operating revenue 30,191,792,987 25,977,976,968 16.22 22,655,141,652
Net profit attributable to the shareholders of the listed
371,937,232 439,839,245 -15.44 422,240,299
company
Net profit attributable to the shareholders of the listed
414,835,324 -440,186,675 N/A -58,462,207
company after deducting the non-recurring profits and losses
Net cash flows from operating activities 2,568,564,023 2,119,639,518 21.18 819,389,020
At the end of At the end of Year-on-year At the end of
2022 2021 change (%) 2020
Net assets attributable to the shareholders of the listed
15,168,470,117 14,990,218,631 1.19 14,570,822,140
company
Total assets 78,213,168,723 78,332,081,199 -0.15 79,320,644,540
(II) Major financial indexes
Major financial indexes 2022 2021 Year-on-year change (%) 2020
Basic earnings per share (RMB/share) 0.07 0.08 -12.50 0.08
Diluted earnings per share (RMB/share) 0.07 0.08 -12.50 0.08
Basic earnings per share after deducting non-
0.07 -0.09 N/A -0.01
recurring profits and losses (RMB/share)
Weighted average ROE (%) 2.39 2.90 -0.51 3.04
Weighted average ROE after deducting non-recurring
2.68 -3.48 +6.16 -0.43
profits and losses (%)
5
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 after deducting the non-recurring profits and
losses was mainly due to the decrease in the impact of items for deducting the non-recurring profits and losses.
The change in basic earnings per share after deducting the non-recurring profits and losses was mainly due to the decrease
in the impact of items for deducting the non-recurring profits and losses.
The change in the net cash flows from operating activities was mainly due to the decrease in cash payment for goods
purchased and services received by the Company.
8 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
(III) Explanation for differences between the domestic and foreign accounting standards:
□Applicable √ Not Applicable
9 Main financial data in 2022 by quarter
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan. to Mar.) (Apr. to Jun.) (Jul. to Sep.) (Oct. to Dec.)
Operating revenue 4,770,429,059 7,725,937,628 6,482,964,267 11,212,462,033
Net profit attributable to the shareholders of the listed company 15,292,041 114,517 51,922,863 304,607,811
Net profit attributable to the shareholders of the listed company
198,022,896 -127,450,338 162,623,826 181,638,940
after deducting the non-recurring profits and losses
Net cash flows from operating activities -891,161,550 761,099,344 659,686,099 2,038,940,130
Explanations about the differences between the quarterly data and the data in periodically disclosed reports
□Applicable √ Not Applicable
10 Non-recurring profit and loss items and amount
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Amount in Note (if Amount in Amount in
Non-recurring profit and loss items
2022 applicable) 2021 2020
Profit or loss from disposal of non-current assets 66,091,456 240,161,569 36,620,758
Government subsidies included in current profits and losses except
for government subsidies closely related to the Company business, in
106,415,947 81,153,206 97,849,026
line with national policies and obtained by quota or quantity at unified
state standards
Profit or loss on changes in fair values of held-for-trading financial
assets, derivative financial assets, held-for-trading financial liabilities
and derivative financial liabilities, and investment income obtained
from disposal of held-for-trading financial assets, derivative financial -214,877,284 643,903,925 356,116,979
assets, held-for-trading financial liabilities, derivative financial
liabilities and other credit investment, except for effective hedging
operations associated with the Company’s normal operations
Reversal of provision for impairment of receivables subject to
94,986,600 78,007,100
separate impairment test
6
2022
Amount in Note (if Amount in Amount in
Non-recurring profit and loss items
2022 applicable) 2021 2020
Other non-operating revenue and expenses except for the above-
27,301,769 12,089,008 4,718,614
mentioned items
Less: Affected amount of income tax 11,561,380 179,212,457 77,383,660
Affected amount of minority equity (after tax) 16,268,600 13,055,931 15,226,311
Total -42,898,092 880,025,920 480,702,506
Description of the recurring profit or loss items defined according to the definitions in “Explanatory Announcement
on Information Disclosure of Companies Offering Securities to the Public No. 1 – Non-recurring Profit or Loss”, as well as
the recurring profit or loss items defined by the non-recurring profit or loss items listed in “Explanatory Announcement on
Information Disclosure of Companies Offering Securities to the Public No. 1 – Non-recurring Profit or Loss”
□Applicable √ Not Applicable
11 Items measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Impact on
December December Current
Item current
31,2021 31,2022 change
profits
Jiangxi Huawu Brake Co., Ltd. 420,227,264 199,652,466 -220,574,798 -185,262,798
Qingdao Port International Co., Ltd. 364,099,519 348,072,750 -16,026,769 13,048,642
China Railway Signal & Communication Corporation Limited 286,756,480 280,317,612 -6,438,868 15,544,255
Shenwan Hongyuan Group Co., Ltd. 1,119,345 870,116 -249,229 -165,057
COSCO Shipping Holdings Co., Ltd. 72,893,036 40,132,120 -32,760,916 -16,614,465
Equity instrument investment 8,438,278 8,438,278 0 0
Hunan Fengri Power & Electric Co., Ltd. 27,201,190 30,657,862 3,456,672 335,790
CCCC Highway Bridges National Engineering Research
20,644,018 22,151,670 1,507,652 0
Centre Co., Ltd.
CCCC National Engineering Research Center of Dredging
8,673,049 8,938,170 265,121 0
Technology and Equipment Co., Ltd.
Shenyang Weichen Crane Equipment Co., Ltd. 6,003,344 5,205,300 -798,044 0
Ningbo Weilong Port Machinery Co., Ltd. 2,809,856 5,825,195 3,015,339 0
ZPMC Longchang Lifting Equipment Co., Ltd. 948,588 697,422 -251,166 0
Total 1,219,813,967 950,958,961 -268,855,006 -173,113,633
12 Others
□Applicable √ Not Applicable
7
Section III Management Discussion and Analysis
I. Discussion and analysis of the performance
In 2022, the Company adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for
a New Era, deeply studied and implemented the spirit of the 20th National Congress of the Communist Party of China,
conscientiously implemented the important decisions and plans of the Party Central Committee, the State Council and State-
owned Assets Supervision and Administration Commission, effectively fulfilled the duties and obligations under the Company
Law and the Articles of Association of the Company, closely focused on the “1544” overall development strategy, upheld
the underlying principle of pursuing progress while ensuring stability, paid close attention to the management improvement,
cost reduction and efficiency increase and reform and innovation, successfully overcame the internal and external adverse
impacts, completed the annual tasks and targets in all respects, and continued to promote the high-quality development of
the enterprise.
In accordance with the requirements of the three-year action plan for state-owned enterprise reform, the Company had
deepened its reform work comprehensively from perfecting the modern enterprise system with Chinese characteristics,
paying adequate attention to the special projects of state-owned enterprise reform, and improving the market-oriented
operation mechanism, so as to continuously stimulate the endogenous power of the enterprise to become stronger, better
and bigger. The construction of the governance subjects was continuously strengthened, which optimized the governance
system and further improved the governance effectiveness; the flat reform of the company’s organization integrated and
reorganized the internal resources and further improved the operation and management efficiency; the identification of new
performance subjects consolidated the responsibility for performance and further enhanced the production management
level; the “three-system” reform was accelerated on a continuing basis, which mobilized the enthusiasm of the cadre team
for the undertakings and further released the operation vigor. In reform, it made strong moves across the board, secured
major advances in many areas, drove deeper in pursuing progress and made achievements in implementation, and many
important indicators of the Company were improved significantly, and the high-quality development of the enterprise reached
a new stage.
During the reporting period, the Company realized the operating revenue amounting to RMB 30.192 billion, representing
a year-on-year increase of 16.22%; the net profit attributable to the parent company after deducting the non-recurring profits
and losses was RMB 0.415 billion, with an increase of RMB 0.855 billion over the same period last year. The new contract
value of port machinery business was USD 3.385 billion, with an increase of 5.48% over the same period last year. New
contract value of marine engineering and steel structure-related businesses amounted to USD 2.161 billion, with an increase
of 88.73% over the same period last year, of which the new orders for steel structure business amounted to USD 0.542 billion,
maintaining a steady and progressive development trend.
The market layout of each business segment was continuously optimized, the core advantage of port machinery
business was further consolidated, new breakthroughs were made in the development of the offshore engineering market,
steel structure and wind power business achieved faster growth, shipping business, parking business, after-market service
business and new business were promoted in an orderly manner, and the operating capacity was steadily improved. The
cost accounting and control system was established, the construction of a comprehensive budget constraint system was
strengthened, the whole process supervision of cost management of key projects was carried out, and the cost control
capability was effectively enhanced. The Company actively explored the new model of “open competition mechanism” that
integrated scientific and technological breakthrough and incentive to select the best candidates to undertake key research
projects and promoted digitalization, standardization and modularization in an orderly manner, so as to continuously upgrade
the ability of scientific and technological self-independence and self-improvement.
II. Industrial situation of the Company during the reporting period
The world was undergoing the greatest changes in a century and was entering a new period of fluidity and change, and
our country has entered a period of development in which strategic opportunities, risks, and challenges were concurrent and
uncertainties and unforeseen factors were rising. As an export-oriented enterprise, the Company was still confronted with the
challenges such as supply chain security and stability and bottleneck problems in technical breakthrough. The 20th National
Congress of the Communist Party of China clearly defined the goals and tasks for the cause of the Party and the country
on a new journey in a new era, and made major plans to promote high-standard opening-up, accelerate the construction
of a manufacturing power, and accelerate the green transformation of the development mode. The Central Economic Work
Conference stressed that in 2023, we should prioritize stability while pursuing progress, paid attention to “six overall plans”
and proposed key tasks such as accelerating the construction of a modern industrial system and vigorously developing the
digital economy.
From the perspective of the industrial situation of the Company, the demand for larger, more efficient, lighter, lower
carbon and more intelligent port machinery was more obvious. The major port operators have successively formulated the
action plans for decarburization and emission reduction before 2030, and the demand for carbon reduction of equipment
8
2022
would increase in the future. The Company would actively carry out research on high-end technology, cutting-edge
technology and bottleneck technology at home and abroad, and intensify the research and development of lightweight,
intelligent and low-carbon port machinery products. In the post-service market, users also had higher requirements on
the response speed of maintenance service, after-sales service and spare parts service of the Company. In the offshore
engineering business, affected by the Russia-Ukraine War, international crude oil price fell down in fluctuation after rising
rapidly in March 2022. The global oil and gas offshore equipment market was in the recovery cycle, but the market outlook
was still in “wait-and-see”. The Company’s offshore engineering business would continue to grasp its own advantages, do
well in differentiation development, and actively expand new tracks and international market. The Company closely focused
on the key fields of the global offshore engineering business, national demand for capital construction and market demand
for large equipment, did well in the supply of large-scale offshore equipment and core support and services. The offshore
wind power industry was gradually maturing, the cost was gradually decreasing, and the development prospects were good.
China was the world’s largest offshore wind power market, and the growth space of the average annual new installation of
offshore wind power was full of potential. Since the state revenue did not subsidize the new offshore wind power projects any
more, the market competition was becoming more intense, and the Company was making efforts to seize the development
opportunities in the wind power business and anchoring on the mature fields to achieve the development by leaps and
bounds in the wind power business. As to the steel structure business, viewed from a long term, the capital construction such
as highway and railroad bridge still had greater development potential, prefabricated steel structure had a vast market space,
and the Company would bring into play the advantages in fabricating the large heavy special steel structure and cultivate
differentiated competitive advantages. The Company was continually exploring the emerging businesses, parking business
in line with the strategic orientation of “smart city” and “smart transportation”, and was in an important period of policy
supporting, resource integration and technology integration, no leading enterprise was formed at home. So, it was necessary
to strengthen scientific and technical innovation and market development to realize the rapid development and growth. The
new energy business and elevator installation business for the old buildings had good market development space and policy
supporting.
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 Suzhou, as well as several overseas branches
worldwide, the Company had more than twenty 60,000t to 100,000t complete transport vessels which could transport
complete large products to the world. At present, the products of the Company have been successfully sold to 106 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, the port machinery business continued to consolidate its core strength. The market share
of the Company’s shore bridge products remained up to 70%, maintaining No.1 in the world for 25 consecutive years. The
signing of Shuifu Port contract represented an important step of the Company in the inland river port machinery market.
The offshore engineering business focused on the layout optimization. The Company successfully won the bids for the
projects, including 4,000t revolving derrick barge of CCCC Third Harbor Engineering Co., Ltd. and 15,000m3 LNG clean
energy driven trailing suction hopper dredger of CCCC Shanghai Dredging Co., Ltd. The Company also made great progress
in destocking the offshore engineering equipment, and successfully achieved the bareboat chartering and reletting of in-hand
drilling platforms.
The steel structure business showed its brand reputation. The largest cable-stayed bridge in West Africa, the Cocody
Bridge in Cte d'Ivoire, was successfully closed; Hong Kong’s Tseung Kwan O Cross Bay Bridge and Xiamen Xiang’an
Bridge were opened to traffic; Peljesac Bridge in Croatia was successfully opened to traffic and won the nomination award of
“Outstanding Infrastructure” issued by International Association for Bridge and Structural Engineering.
The shipping business made steady progress. The shipping business fully accomplished the annual targets and tasks.
A number of semi-submersible transport ships under the Company actively undertook the multi-voyage transportation of
foundation jacket of Seagreen wind power in the North Sea on the return journey to improve the ratio of operation time to
total time and made efforts to maximize the benefit.
Wind power business achieved faster growth. The Company successfully won the bid for 1,800t and 2,500t wind power
installation platform and the supporting equipment of CCCC Third Harbor Engineering Co., Ltd., with the amount of order
over RMB 2.6 billion, which was the offshore wind power project with the largest sum of bid-winning amount in recent year. It
completed the construction and lifting of several booster stations and jackets as well as the manufacture of core components
for wind power equipment.
9
Parking business actively cultivated the characteristics. The Company had won the bids for the mechanical parking
garage project of CCCC First Highway Consultants Co., Ltd., the mechanical parking garage project of Huawei Bus Station
of Chengdu Public Transport Group Co., Ltd. and the mechanical parking garage project of Chongqing Lijia Public Parking
Building. Among them, the mechanical parking garage project of Huawei Bus Station of Chengdu Public Transport Group
Co., Ltd. firstly adopted the two-story simple bus mechanical parking equipment researched and developed by the Company,
which satisfied the demand for intensive parking and reconstruction of the bus stations.
The after-market service showed its business value. All businesses achieved better growth, and the renovation business
completed comprehensive targets. In the new energy business, it collaborated to establish CCCC Photovoltaic Technology
Co., Ltd., completed the investment in capital, participated in 3 external tendering projects, and achieved the annual
operation objectives. In the business of the elevator installation for the old buildings, the trial application of the new materials
and new technology achieved good results. In the prefabricated steel structure business, the project of upgrading and
renovating the electrical equipment system of two stations in Antarctica was signed and entered the site construction stage.
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. By the end of 2022, the Company had applied for a total of 3,524 patents, with 1,940
valid patents and 53 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.
“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 Company independently developed the first intelligent industrial software in the field of product design simulation in the
industry, deepening the integration and development of information technology and intelligent equipment. 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 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.
10
2022
V.Performance during the reporting period
During the reporting period, the Company’s operating revenue was steadily rising and its profitability of main business
improved significantly. The Company realized the operating revenue amounting to RMB 30.192 billion, representing a year-
on-year increase of 16.22%; the net profit attributable to the parent company after deducting the non-recurring profits and
losses was RMB 0.415 billion, with an increase of RMB 0.855 billion over the same period last year; the basic earnings per
share was RMB 0.07, representing a year-on-year decrease of 12.5%.
1 Analysis of the performance
1.Analysis table of changes in the related items in profit statement and cash flow statement
Unit: Yuan Currency: CNY
Amount in the current Amount in the same period of
Item Change (%)
period the last year
Operating revenue 30,191,792,987 25,977,976,968 16.22
Operating cost 26,145,431,986 23,498,271,033 11.27
Selling and distribution expenses 176,805,664 115,347,438 53.28
General and administrative expenses 835,690,168 869,195,529 -3.85
Financial expenses 775,079,877 663,827,522 16.76
Research and development expenditures 1,118,337,091 883,154,222 26.63
Net cash flows from operating activities 2,568,564,023 2,119,639,518 21.18
Net cash flows from investing activities -83,719,029 2,491,026,605 -103.36
Net cash flows from financing activities -4,723,159,537 -2,979,168,361 N/A
Taxes and surcharges 174,759,457 108,179,417 61.55
Other income 104,014,204 75,986,080 36.89
Investment income (loss expressed with “-”) 204,359,358 1,286,473,690 -84.11
Credit impairment losses (loss expressed with “-”) -346,156,434 -155,561,886 N/A
Assets impairment losses (loss expressed with “-”) -92,510,638 -294,180,123 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 decrease in the travel expenses of the
management personnel of the Company.
The change in financial expenses was mainly due to the increase in exchange losses caused by 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.
The change in the net cash flows from operating activities was mainly due to the decrease in cash payment for goods
purchased and services received by the Company.
The change in net cash flows from investing activities was mainly due to the investment recovery by the Company and
the decrease in the cash received from investment income.
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 of the Company’s VAT credit into the scope of
surcharge tax collection in accordance with the “Announcement of the Shanghai Municipal Finance Bureau and Shanghai
Municipal Tax Service, State Taxation Administration on the Collection of Urban Maintenance and Construction Tax” (HCF
[2021] No. 5).
The change in other income was mainly due to the increase in government subsidies received by the Company during
the period.
The change in investment income was mainly due to the decrease in the disposal of held-for-trading financial assets of
the Company.
The change in credit impairment losses was mainly due to the increase in the Company’s provision for bad debts.
The change in assets impairment loss was mainly due to the decrease 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
11
2. Analysis of revenue and cost
√ Applicable □ Not Applicable
During the reporting period, the Company realized the operating revenue amounting to RMB 30.192 billion, representing
a year-on-year increase of 16.22%; the operating cost was RMB 26.145 billion, representing a year-on-year increase of
11.27%.
(1) Main business by sector, product, region and sales model
Unit: Yuan Currency: CNY
Main business by product
Gross Year-on- year Year-on-year Year-on-year
Operating
Product Operating cost profit rate change in operating change in change in gross
revenue
(%) revenue (%) operating cost (%) profit rate (%)
Port machinery 20,731,800,489 17,409,218,335 16.03 18.60 11.43 +5.41
Heavy-duty equipment 3,085,509,098 2,851,639,122 7.58 305.92 289.89 +3.80
Engineering construction
1,613,996,721 1,618,116,053 -0.26 -27.19 -28.82 +2.28
projects
Steel structure and related
2,731,132,322 2,634,320,687 3.54 -27.26 -26.21 -1.38
income
Marine transport and others 1,863,176,191 1,501,571,151 19.41 28.37 30.93 -1.57
Main business by region
Gross Year-on- year Year-on-year Year-on-year
Operating
Region Operating cost profit rate change in operating change in change in gross
revenue
(%) revenue (%) operating cost (%) profit rate (%)
Chinese Mainland 15,851,108,239 13,645,818,402 13.91 17.35 14.80 +1.90
Chinese Mainland (export
968,104,389 915,983,772 5.38 34.65 54.85 -12.34
sales)
Europe 877,042,956 866,747,305 1.17 -56.97 -54.04 -6.29
Asia (excluding Chinese
7,867,109,144 6,758,431,423 14.09 76.43 60.91 +8.28
Mainland)
North America 2,181,504,594 1,935,410,245 11.28 -32.39 -37.07 +6.59
South America 600,144,518 432,600,416 27.92 190.91 127.62 +20.04
Africa 1,368,578,664 1,184,485,809 13.45 -1.84 -13.51 +11.68
Oceania 312,022,317 275,387,976 11.74 176.85 87.86 +41.81
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: 109 Yuan Currency: CNY
Amount Explanation
Total Total performed Amount Normally for abnormal
Subject-matter of contract The opposite party contracted amount during the to be performed performance
value performed reporting performed or not of the
period contract
Contract for ECT Terminal of Chairman of Sri
2.8256 0.90268 0.90268 1.92292 Yes
East Port, Sri Lanka Lanka Ports Authority
General Contract for Honggang Wharf
Intelligent Handling Co., Ltd. in Guangxi
System of No. 9-10 Berth Qinzhou Tariff Free
14.3734 5.74936 1.23734 8.62404 Yes
in Dalanping South Port Port Area
Operation Section, Dalanping Legal representative:
Port Area, Qinzhou Port Wen Furong
12
2022
Amount Explanation
Total Total performed Amount Normally for abnormal
Subject-matter of contract The opposite party contracted amount during the to be performed performance
value performed reporting performed or not of the
period contract
Procurement of double-trolley
quayside container cranes
for Phase I project of the
Container Terminal Project Hu Chaoyang 12.93 3.879 3.879 9.051 Yes
in East Operation Section of
Yantian Port Area, Shenzhen
Port (secondary)
Note: Unit of contracted value of Sri Lanka Project: USD 109
Fulfillment of major purchasing contracts signed by the reporting period
□Applicable √ Not Applicable
(4) Cost analysis table
Unit: Yuan
By product
Proportion in Proportion of the one Year-
Amount in the
Amount in the total cost in in the same period of on-year Explanatory
Product Items of cost structure same period of
current period the current the last year in total change notes
the last year
period (%) costs (%) (%)
Raw material cost, labor Normal operating
Port machinery 17,409,218,335 66.92 15,623,751,962 66.92 11.43
cost and production cost fluctuations
Heavy-duty Raw material cost, labor Normal operating
2,851,639,122 10.96 731,403,000 3.13 289.89
equipment cost and production cost fluctuations
Engineering Raw material cost, labor Normal operating
1,618,116,053 6.22 2,273,212,756 9.74 -28.82
construction projects cost and production cost fluctuations
Steel structure and Raw material cost, labor Normal operating
2,634,320,687 10.13 3,570,148,974 15.29 -26.21
related income cost and production cost fluctuations
Marine transport Raw material cost, labor Normal operating
1,501,571,151 5.77 1,146,871,542 4.91 30.93
and others cost and production cost fluctuations
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 5,461,076,400, accounting for 18.09% of the total annual sales; the sales
to the related parties among the top 5 customers were RMB 1,290,408,400, accounting for 4.27% 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 4,186,281,700, accounting for 15.29% of total annual purchases; the
purchases from the related parties among the top 5 suppliers were RMB 370,483,900, accounting for 1.35% 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
13
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 decrease in the travel expenses of the
management personnel of the Company.
The change in financial expenses was mainly due to the increase in exchange losses caused by 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 1,118,337,091
Current capitalized R&D investments 4,329,559
Total R&D investments 1,122,666,650
Proportion of total R&D investments in operating revenue (%) 3.72
Proportion of capitalized R&D investments (%) 0.39
(2) Detail table of R&D employees
√ Applicable □ Not Applicable
Number of R&D employees in the Company 1,440
Proportion of number of R&D employees in the total employees of the Company (%) 17.76
Educational structure of R&D employees
Educational structure category Number
Doctor 11
Master 291
Undergraduate 1,043
Junior College 85
Senior high school and below 10
Age structure of R&D employees
Age structure category Number
Under 30 (exclusive) 227
30-40 (inclusive of 30 and exclusive of 40) 637
40-50 (inclusive of 40 and exclusive of 50) 486
50-60 (inclusive of 50 and exclusive of 60) 90
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 decrease in cash payment for goods
purchased and services received by the Company.
The change in net cash flows from investing activities was mainly due to the investment recovery by the Company and
the decrease in the cash received from investment income.
The change in net cash flows from financing activities was mainly due to the repayment of loans by the Company.
14
2022
2 Explanation for the significant changes in profits due to non-main business
□Applicable √ Not Applicable
3 Analysis of assets and liabilities
√ Applicable □ Not Applicable
1. Assets and liabilities
Unit: Yuan
Proportion of the Proportion of the
Amount at Amount at Year- on-
amount at the end amount at the end of
Item the end of the the end of the year change Notes
of the current period the previous period
current period previous period (%)
in total assets (%) in total assets (%)
Monetary funds 2,397,047,713 3.06 4,571,837,584 5.84 -47.57
Notes receivable 56,114,657 0.07 3,979,800 0.01 1,309.99
Receivables financing 439,912,428 0.56 245,408,260 0.31 79.26
Contract assets 3,243,073,136 4.15 1,971,455,850 2.52 64.50
Assets held for sale - 0.00 15,167,288 0.02 -100.00
Non-current assets due within one
900,213,411 1.15 1,437,034,591 1.83 -37.36
year
Short-term borrowings 1,793,682,952 2.29 5,977,692,367 7.63 -69.99
Tax payable 238,103,875 0.30 167,827,388 0.21 41.87
Other payables 1,314,688,315 1.68 409,527,645 0.52 221.03
Non-current liabilities due within
6,961,445,218 8.90 2,523,964,018 3.22 175.81
one year
Other non-current liabilities 181,805,207 0.23 292,297,881 0.37 -37.80
Other description
The monetary funds decreased primarily driven by the investment recovery by the Company and the decrease in the
cash received from investment income, and the increase in cash for repayment of borrowings.
Notes receivable increased primarily driven by the increased commercial acceptance received by the Company.
Receivables financing increased primarily driven by the increased bank acceptance receivable of the Company.
The contract assets increased primarily driven by the increase in the amounts recognized under the time period method
by the Company that are not eligible for collection.
The assets held for sale decreased primarily driven by delivery of the fixed assets with sales contracts signed in the
previous year.
Non-current assets due within one year decreased primarily driven by the decrease in the Company’s long-term
receivables due within one year.
The short-term borrowings decreased primarily driven by the decreased short-term borrowings of the Company from
banks in the current period.
The tax payable increased primarily driven by the increase in value-added tax and surtax payable by the Company.
Other payables increased primarily driven by the implementation of Asset-Backed Securities Special Plan by the Company.
Non-current liabilities due within one year increased primarily driven by the increase in the long-term bank borrowings of
the Company within a year.
Other non-current liabilities decreased primarily driven by the decrease in the Company’s output tax to be carried
forward.
2. Overseas assets
√ Applicable □ Not Applicable
(1) Asset size
Including: overseas assets of 13,485,191,449 (Unit: Yuan, Currency: CNY), accounting for 17.24% of the total assets.
(2) Related explanation for relatively high proportion of overseas assets
□Applicable √ Not Applicable
15
3. Particulars about main restricted assets as at the end of the reporting period
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Book value at the
Item Reason for restriction
end of the period
Special fund, letter of guarantee from the bank and guarantee fund for L/C collected
Monetary funds 21,946,276
from the overseas projects and deposited in the overseas supervision account
Fixed assets 2,463,807,041 Collateral for loan
Long-term receivables 2,212,190,758 Hypothecation for loan
Other non-current
3,572,872,352 Hypothecation for loan
assets
Contract assets 133,406,311 Hypothecation for loan
Accounts receivable 191,217,707 Hypothecation for loan
4.Other description
□Applicable √ Not Applicable
4 Analysis of operational information of the industry
√ Applicable □ Not Applicable
In port machinery market, the Company closely followed the industry development trend, strengthened product
innovation research, and maintained its market leadership in the main business field. The Company would continue to
expand the after-sales market and promote manufacturing plus services to create a new engine for development.
The marine engineering market was in the upward cycle of the industry, and the Company actively promoted the
dissolution of marine engineering inventory and the turnover of idle equipment by strengthening market research and
planning. At the same time, the Company brought into play the innovative advantages to strengthen the research and
development of cutting-edge technologies and seize the policy dividends of marine power strategy.
In the offshore wind power market, as the central government no longer provided subsidies for new offshore wind power
projects, the market competition was becoming increasingly intense. The Company took the implementation of professional
wind power operation and maintenance ship projects as the starting point to strengthen the comprehensive advantages such
as brand, scientific research and scale.
The parking business was in line with the strategic direction of “smart city” and “smart transportation”, and was in an
important period of policy support, resource integration and technological integration. There was no leading enterprise in
China yet, and the Company should strengthen technological innovation and market exploration for rapid development and
growth.
For steel structure business, there would be great development potential in infrastructure such as highways and railway
bridges in the long run, and the market space for prefabricated steel structure buildings was vast. The Company focused on
the construction advantages of large and heavy special steel structures to cultivate differentiated competitive advantages.
5 Analysis of investment
Overall analysis of external equity investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Investment amount by the end of reporting period 2,945,400,608
Changes in investment amount -107,696,340
Investment amount in the same period of the last year 3,053,096,948
Change in investment amount (%) -4
16
2022
1. Significant equity investment
√ Applicable □ Not Applicable
Unit:’0,000 Yuan Currency: CNY
Whether
Impact
the subject Progress
Name of Statement Expected on Lawsuit
Main is mainly Investment Investment Shareholding Whether to Fund Partner (if Investment as at the Disclosure Disclosure
invested item (if earnings current involved
business engaged in manner amount ratio consolidate source applicable) term (if any) balance date (if any) index (if any)
entity applicable) (if any) profit or not
investment sheet date
or loss
business
CCCC
See
CCCC Photovoltaic Industrial Officially
Extraordinary
Photovoltaic Solar Newly power plant Investment incorporated June 7,
Yes 6,000 30% No 5.407 No Announcement
Technology power established assets for Holding on July 21, 2022
No. 2022-014
Co., Ltd. equity Company 2022
for details
Ltd.
Total / / / 6,000 / / / / / / / 5.407 / / /
2. Significant non-equity investment
□Applicable √ Not Applicable
3. Financial assets measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Profit or loss Accumulated fair
Impairment Amount Amount sold/
Beginning on changes in value changes Ending
Asset class provision for purchased in redeemed in Other changes
balance fair values for recognized in balance
the period the period the period
the period equity
Stock 1,145,095,644 -276,050,580 869,045,064
Total 1,145,095,644 -276,050,580 869,045,064
Securities investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Profit or loss on Accumulated fair Profit or
Initial Book value at the Amount Amount Book value at
Securities changes in fair value changes loss on
Stock code Stock abbreviation investment Fund source beginning of the purchased in sold in the the end of the Accounting subject
Variety values for the recognized in investments
cost period the period period period
period equity in the period
Self-owned Held-for-trading
Stock 06198 Qingdao Port 308,515,588 364,099,519 -16,026,769 26,430,994 348,072,750
funds financial assets
Self-owned Held-for-trading
Stock 03969 CRSC 617,854,000 286,756,480 -6,438,868 20,920,710 280,317,612
funds financial assets
Self-owned Held-for-trading
Stock 300095 Huawu Stock 11,071,606 420,227,264 -220,574,798 2,225,780 199,652,466
funds financial assets
COSCO SHIPPING Self-owned Held-for-trading
Stock 601919 420,000,000 72,893,036 -32,760,916 11,232,314 40,132,120
HOLDINGS funds financial assets
Self-owned Held-for-trading
Stock 000166 Shenwan Hongyuan 200,000 1,119,345 -249,229 21,865 870,116
funds financial assets
Total / / 1,357,641,194 / 1,145,095,644 -276,050,580 60,831,663 869,045,064 /
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
17
6 Sales of significant assets and equities
□Applicable √ Not Applicable
7 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 Co., box, container yard crane, super heavy-duty bridge steel structure, 2,500,000,000 8,142,368,750 40,349,601
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 General 2,184,730,000 2,419,404,067 51,750,795
parts, sales and technical services, installation and maintenance,
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 2,213,522,865 120,684,118
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 Port Design, manufacturing and sales of port machinery, engineering
HKD 50,000,000 14,099,780,358 120,671,564
Machinery (Hong Kong) Co., Ltd. vessel, steel structure and other parts
Greenland Heavylift (Hongkong)
Marine transport USD 91,975,158 2,716,839,538 241,097,715
Limited
ZPMC Qidong Marine Engineering
Machinery manufacturing 303,000,000 1,932,325,820 -76,031,682
Co., Ltd.
CCCC Financial Leasing Co., Ltd. Finance lease 5,700,000,000 54,071,497,082 1,057,340,236
China Communications
Construction of port, waterway, highway and bridge USD 50,000,000 251,796,686 824,439
construction USA. Inc
Fabrication and installation of steel structure; foundation
construction, equipment installation and maintenance of offshore
Jiangsu Longyuan Zhenhua
wind power facilities; construction and maintenance of submarine 260,000,000 4,280,316,321 153,804,798
Marine Engineering Co., Ltd.
cable system; marine engineering construction, equipment
installation and maintenance; leasing of installation equipment
8 Particulars about structured entities controlled by the Company
□Applicable √ Not Applicable
VI. Discussion and analysis of the future development of the Company
1 Industrial structure and trend
√ Applicable □ Not Applicable
1. International political and economic situation
Entering 2023, the complexity and difficulties of the 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 market. The development risks of export-oriented enterprises
in overseas market development, supply chain construction, territorial development and information security will further
increase. The Central Economic Work Conference pointed out that the foundation for China’s economic recovery is not yet
solid, and the triple pressures of demand contraction, supply shock, and weakening expectations are still high. However, it
should also be noted that China’s economy has strong resilience, great potential, and abundant vitality. The effects of various
policies continue to show, and the overall economic operation is expected to rebound in 2023. China will focus on expanding
domestic demand, accelerating the construction of a modern industrial system, and making greater efforts to attract and
utilize foreign investment, which points out the direction and puts forward higher-level requirements for export-oriented
enterprises to improve their operational quality and efficiency, industrial chain construction, scientific and technological
research and development, resource utilization, safety and environmental protection, etc.
18
2022
2. Industrial development
The national policy sets a tone to expand domestic demand, and the industry is facing opportunities for restorative
growth. The Central Committee of the Communist Party of China and the State Council issued the “Outline of Strategic Plan
for Expanding Domestic Demand (2022-2035)”, and the National Development and Reform Commission simultaneously
formulated and introduced the “Implementation Plan for Expanding Domestic Demand during the 14th Five-Year Plan
Period”, proposing to increase investment in the optimization and upgrading of traditional manufacturing industries, expand
investment in advanced manufacturing, and improve the quality and efficiency of the manufacturing supply system. A new
round of technological revolution represented by digital technology is flourishing worldwide, the industrial digitalization in
equipment manufacturing, port industry, marine engineering and other fields has become the trend of the times, and the
transformation and upgrading of digital and intelligent manufacturing of companies have become more urgent.
2 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) Firmly 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 "bottleneck" technologies, consolidate
the long-term partnership with major customers at home and abroad, and transform and upgrade from product services
and technical services to full-life services, and continue to consolidate the position of "global special champion" and gains-
to-scale in port machinery. It will hold up the banner of "chain head of automated terminal industry chain" and further
upgrade the Company's leadership in the automated terminal construction. 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 (service operation) 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. Seize the opportunities of “new infrastructure
construction”, “double-carbon” action and urban transformation, and increase resources investment to develop mature
new business such as steel structure, offshore wind power and sky parking. Bring into play the Company's advantages in
fabrication and transportation of steel structure, increase the layout of internal and external production and manufacturing
resources and accelerate the implementation of the benchmark projects in national strategic regions and overseas steel
structure markets such as Australia and Japan. Seize the opportunity of national new energy development, give full play
to the Company’s unique competitiveness in the field of transportation and installation of offshore wind power equipment,
strengthen the professional cooperation with outstanding enterprises in the industry, further excavate the potential of wind
power market in important national regions such as Guangdong and overseas regions and strive for winning more general
contracting projects for the representative wind power projects, and explore the wind farm service operation market.
Bring into full play the demonstration effects of the benchmark parking projects built or in progress, further give play to the
advantages in equipment and technology, and gradually explore the construction of intelligent parking full-scene solutions
and the whole industry chain service model.
(3) Actively explore new tracks related to the primary business. Seize the opportunity of renewal and reconstruction of
old port machinery in global ports and terminals, plan ahead and operate it comprehensively, strive 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. Based on the renewal and renovation of port machinery, with Terminexus online spare parts
service platform as the foundation, 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) Moderate development of investment and financing business related to the primary business. Take advantage of
the Company's brand, resources, low financing cost, etc., focus on the primary business, find the right time, and grasp
the specific advantages, specific regions and specific partners to carry out investment and financial business. Actively
participate in the equity investment of important customers of domestic ports and listed suppliers of supporting parts related
to the Company's primary business; invest the projects with low risk and stable benefits such as offshore wind power, steel
structure, parking garage, etc.
19
(5) Accelerate other businesses in a steady and orderly manner. Focus on national strategy, market demand,
development advantages, input-output factors, further explore and accelerate the emerging businesses such as assembled
building in a steady and orderly manner. As to the assembled building business, give full play to the Company's advantages
in design and fabrication of steel structure manufacturing, and actively implement the assembled steel structure benchmark
projects. In the fields of marine economy, people's livelihood engineering and new energy, strengthen the situation analysis,
accelerate the cultivation of the Company’s differentiated advantages, upgrade the business qualification, and actively follow
up and implement the projects with obvious advantages and considerable benefits.
3 Operation plan
√ Applicable □ Not Applicable
Continuing to consolidate the core position of the port machinery business. The Company will improve the technology
accumulation of automated terminals, promote the performance of automated terminals, and vigorously expand the market of
automated terminals; further improve the level of product gross margin on the basis of retaining the market share of quayside
container crane products; improve the standardization and modularization level of container portal crane products; vigorously
develop the bulk cargo machinery and mobile machinery business to further enrich the brand connotation of “Zhenhua Port
Machinery”.
Expanding the development scale of maring engineering business in an orderly manner. The Company will bring into
play its design and manufacturing advantages in dredging vessels, special engineering vessels and key core components,
and take its advantageous marine engineering products as a breakthrough to seize the overseas market while retaining its
existing market share; continue to make efforts to promote the resolution of offshore inventory, seek durable, reliable, and
high-quality long-term rental orders, and actively seek suitable opportunities to facilitate inventory sales.
The Company will make efforts to enhance the brand effect of steel structure business and strengthen the qualification
and brand building of steel structure products.
Taking advantage of shipping and installation to actively explore the market. The Company will focus on tracking the
market demand of spot marine transportation, continuously improve the market competitiveness of semi-submersible and
deck vessel ocean transportation business, give full play to the advantages of floating crane operation, and vigorously
expand the port and offshore lifting market.
Striving to seize the market opportunities in wind power business. The Company will give full play to its manufacturing
advantages in crane vessel, installation platform, operation and maintenance vessel, booster station module and wind power
foundation steel structure to continue to consolidate its core competitiveness in wind power market.
Optimizing and improving the scale and efficiency of parking business. The Company will explore diversified means
to quickly make up for the shortcomings of parking business and accelerate market expansion; incorporate the Company’s
parking equipment and solutions into transportation infrastructure projects; enter more application scenarios through
research and development to empower the market; and actively seek for the investment-construction-operation integrated
urban parking resources.
Sparing no effort to cultivate the profit growth points of after-market service business. The Company will continue to
promote its subsidiaries to deepen the reform work, build the overall supply chain capability from the market end to the
delivery end, and strengthen the market layout in line with the characteristics of the after-market business; continue to
strengthen the digital construction, build a benchmark MRO (maintenance, repair, operation) service platform in this industry,
and establish a direct link between users and ZPMC.
Exploring and implementing emerging businesses. The Company will aim at the development trend of green
prefabricated building and rely on physical companies to carry out business; continue to optimize and improve the elevator
installation business model, and vigorously promote the development of integrated full lifecycle elevator installation projects;
explore cooperation with well-known universities to enter the hazardous waste treatment industry and actively expand
equipment procurement, installation, commissioning, and operation and maintenance related hazardous waste treatment
businesses. Relying on CCCC Photovoltaic Technology Co., Ltd., the Company will increase market development and
investment in photovoltaic projects, do well in the EPC and operation and maintenance of projects, increase the industry-
university-research efforts, strive to master the new material technology, and truly intervene in the key links of industry chain.
4 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.
20
2022
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. Raw materials supply risk
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.
5 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
21
Section IV Corporate Governance
I.Related information about corporate governance
√Applicable □Not applicable
In strict accordance with the “Company Law”, “Securities Law”, “Articles of Association” and the requirements of
the China Securities Regulatory Commission and Shanghai Stock Exchange on corporate governance, the Company
standardized daily operations, strived to enhance corporate governance, further established and improved the internal
control system, improved the quality of information disclosure and strengthened the investor relations management
continuously as well as safeguarded the legitimate rights and interests of the Company and all shareholders effectively,
ensuring the sustainable and stable development of the Company. In 2022, the Company held a total of 9 meetings of the
Board of Directors, 6 meetings of the Board of Supervisors and 3 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 2022, the Company continued to optimize the construction of governance systems, such as the “Articles of
Association”, “Rules of Procedure of the Board of Directors” and “Implementation Rules for Specialized Committees of the
Board of Directors”, and continuously incorporated the latest requirements such as the reform of state-owned enterprises
and regulations of listed companies. The Company organized the revision of the rules of procedure and list for governance
bodies to further clarify the boundary of powers and responsibilities of different governance bodies. The Company has made
efforts to promote the unification of the authority of the Board of Directors and the authorization of the Board of Directors,
formulated implementation plans related to the authority of the Board of Directors, refined the implementation of six important
authorities, such as the right to make medium and long-term development decisions, and improved the supporting system,
which laid a foundation for the standardized, scientific and efficient operation of the Board of Directors of the Company.
The Company has conscientiously fulfilled its information disclosure obligations and improved the quality of information
disclosure work continuously. In 2022, the Company attached great importance to information disclosure work and set up
information disclosure specialists in each department and division of the Company to facilitate the communication channels
for material information within the Company, and strengthened the professional knowledge training for relevant personnel to
improve the awareness of compliance in information disclosure and to enhance the level of information disclosure. During
the year, the Company organized the preparation of extraordinary announcements of board resolutions, periodic reports and
other announcement documents, and issued a total of 68 announcements, including 35 extraordinary announcements, 29
online announcement documents and 4 periodic reports, so as to deliver timely, accurate and complete information on the
Company’s operation, finance and significant events to investors.
The Company has continued to improve the level of investor relations management and enhance the positive interaction
with the capital market. In 2022, the Company formulated the “Investor Relations Management Measures” and the “Annual
Investor Relations Management Plan” to standardize the information communication between the Company and investors
and improve the level of investor relations management. The Company communicated with the capital market through
multiple channels, at multiple levels and from multiple perspectives. The Company held annual and first quarter results
presentation, half-year results presentation and third quarter results presentation in the form of online interaction, and the
chairman and president of the Company attended and responded to investors’ concerns to deepen their understanding
and recognition of the Company and increase the attention to the Company from capital market. The Company maintained
continuous communication with investors through investor research, investor hotline, “SSE E-Interactive” and other means
to actively convey the Company’s value to investors and strengthen investors’ confidence in long-term investment in the
Company.
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
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
22
2022
III. Brief introduction to the general meeting of shareholders
Query index
Date of
of the website
Session of Convening disclosure for
specified for Resolutions
meeting date publishing
publishing
resolutions
resolutions
Reviewed and approved the "Proposal on Reviewing the Working
2021 General www.sse.com.cn;
Report of Board of Directors in 2021", the "Proposal on Reviewing the
Meeting of June 27, 2022 enter the stock June 28, 2022
Working Report of the Board of Supervisors in 2021"and other proposals
Shareholders code to search
(See Extraordinary Announcement No. 2022-017 for details)
2022 first
extraordinary www.sse.com.cn; Reviewed and approved the "Proposal on Reviewing the Election of
September 15, September 16,
general enter the stock Mr. Ou Huisheng as A Director of the Company" (See Extraordinary
2022 2022
meeting of code to search Announcement No. 2022-026 for details)
shareholders
2022 second
extraordinary www.sse.com.cn; Reviewed and approved the "Proposal on Reviewing the Election
December 28, December 29,
general enter the stock of Mr. Zhang Jianxing as A Director of the Company" (See
2022 2022
meeting of code to search Extraordinary Announcement No. 2022-034 for details)
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 2022, the Company convened 3 general meetings of shareholders, which were convened and held in accordance
with the laws and rules including “Company Law of the People’s Republic of China”, the “Rules for the General Assemblies
of Shareholders of Listed Companies” and “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.
IV. Directors, Supervisors and Senior Executives
1 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
Number Total
Number Remuneration
of Change remuneration
of shares received from
Starting Expiry shares in Reason before tax from
held at the any of the
Name Post (Note) Sex Age date of date of held at shares of the Company
beginning Company’s
tenure tenure the end in the change during the
of the related parties
of the year reporting period
year or not
year (RMB’0,000)
Director, chairman June 28, June 27,
of the board 2021 2024
Liu
Male 54 0 0 0 126.53 No
Chengyun General manager
July 12, August
(president)
2021 29, 2022
(resigned)
September June 27,
Director
Ou 15, 2022 2024
Male 53 0 0 0 27.79 No
Huisheng General manager August 30, June 27,
(president) 2022 2024
June 28, June 27,
Director
2021 2024
Zhu Executive General December June 27,
Male 54 0 0 0 127.42 No
Xiaohuai Manager 12, 2022 2024
July 12, June 27,
CFO
2021 2024
23
Number Total
Number Remuneration
of Change remuneration
of shares received from
Starting Expiry shares in Reason before tax from
held at the any of the
Name Post (Note) Sex Age date of date of held at shares of the Company
beginning Company’s
tenure tenure the end in the change during the
of the related parties
of the year reporting period
year or not
year (RMB’0,000)
Wang August 25, June 27,
Director Male 50 0 0 0 127.22 No
Cheng 2021 2024
Zhang December June 27,
Director Male 61 0.75 Yes
Jianxing 28, 2022 2024
Sheng June 28, June 27,
Independent director Male 53 0 0 0 12 No
Leiming 2021 2024
Zhang June 28, June 27,
Independent director Male 50 0 0 0 12 No
Hua 2021 2024
Zhao June 28, June 27,
Independent director Male 47 0 0 0 12 No
Zhanbo 2021 2024
June 28, June 27,
Bai Yunxia Independent director Female 50 0 0 0 12 No
2021 2024
August 25, June 27,
Supervisor
2021 2024
Zhang Lijie Male 53 0 0 0 96.99 No
August 30, June 27,
Chief supervisor
2021 2024
Employee June 28, June 27,
Wei Wei Male 51 0 0 0 69.08 No
supervisor 2021 2024
June 28, June 27,
You Hua Supervisor Male 60 0 0 0 0 Yes
2021 2024
October 29, June 27,
Liu Feng Vice president Male 52 0 0 0 63.02 No
2021 2024
Zhang July 12, June 27,
Vice president Male 54 0 0 0 127.22 No
Jian 2021 2024
July 12, June 27,
Vice president
Shan 2021 2024
Male 59 0 0 0 127.22 No
Jianguo February June 27,
Chief engineer
20, 2023 2024
February June 27,
Vice president
Li 20, 2023 2024
Male 48 0 0 0 127.22 No
Ruixiang July 12, June 27,
Chief economist
2021 2024
Chief legal counsel,
secretary of the July 12, June 27,
Sun Li Male 51 0 0 0 127.22 No
board, chief 2021 2024
compliance officer
Lu February June 27,
Vice president Male 48 0 0 0 0 No
Hanzhong 20, 2023 2024
Shen February June 27,
Vice president Female 46 0 0 0 0 No
Qiuyuan 20, 2023 2024
June 28, December
Director (resigned)
Liu 2021 28, 2022
Male 59 0 0 0 127.22 No
Qizhong Vice president July 12, February
(resigned) 2021 20, 2023
December December
Yu Jingjing Director (resigned) Male 48 0 0 0 0 Yes
22, 2021 12, 2022
Chief engineer July 12, February
Fei Guo Male 61 0 0 0 127.22 No
(resigned) 2021 20, 2023
Wang Vice president July 12, July 29,
Male 59 0 0 0 54.17 No
Baihuan (resigned) 2021 2022
Vice president July 12, March 14,
Zhou Qi Male 51 0 0 0 30.46 No
(resigned) 2021 2022
Total / / / / / / 1,534.75 /
24
2022
Name Main working experiences
Born in 1969, male, master, senior economist, senior engineer. He began his career in August 1989 and has 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., Ltd., general manager and secretary of CPC Working Committee of CCCC South China regional headquarters, general manager of
Liu Chengyun
the 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 General Manager (President) of the Company on August 29, 2022
due to job adjustment. Currently, he is the assistant to the general manager of CCCG, 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
Ou Huisheng
representative 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.;
Wang Cheng secretary 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, professor-level senior accountant. He began his career in August 1985 and has 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
Zhang Jianxing
Dredging Co., Ltd., secretary of 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.
Born in 1970, male, doctor of laws, first grade lawyer. He successively served as a lawyer assistant and lawyer in Shanghai Foreign
Sheng Leiming Trade 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
Zhang Hua professor 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
Zhao Zhanbo is 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 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, engaged in work in 1995. She successively served as the assistant engineer of
Bai Yunxia Kaiyuan Group under Xi’an Jiaotong University, lecturer of School of Economics and Management of Tongji University, research scholar
of CKGSB. Currently, she is the director of Department of Accounting, School of Economics and Management, Tongji University and the
research scholar of Investment Center of CKGSB, and 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 February 1972, male, bachelor, senior political engineer. 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 the
Wei Wei
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 of ZPMC, director of the Trade Union Office and deputy general manager (in charge of
the work) of the Administrative Affairs Department. Since May 2021, he has been the vice chairman of the Labor Union, director of the
Labor Union Office and deputy general manager (in charge of the work) of the Administrative Affairs Department of ZPMC. Currently, he is
the employee supervisor and vice chairman of the labor union of the Company.
25
Name Main working experiences
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
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 is now a supervisor of the Company.
Born in 1971, male, master, senior economist. He started working in July 1995, and successively served as the deputy director (in charge
of the 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 the Equipment Manufacturing
Liu Feng
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.
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,
Sun Li vice 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 has successively served as the
project supervisor of Business Department of the Company, general manager of Project Management Department of the Business Office,
general manager of the Port Machinery Business Department, deputy chief economist of the Company, general manager of the investment
Shen Qiuyuan
group and general manager of the Strategic Development Department. She has been the vice president of the Company since February
20, 2023. Currently, she is the vice president of the Company and the general manager (General Manager) of the Marketing Headquarters
(Integrated Development Management Department).
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 1975, male, bachelor degree, senior economist. He started working in July 1998 and successively served as the director of the
planning department of China Harbour Engineering Company (Group), the business director of the enterprise development department
of CCCG, the deputy director (in charge of the work) and director of the investor relations division of the office of the board of directors of
Yu Jingjing
CCCC, the assistant director and deputy director of the office of the board of directors of CCCC, and a director of China Communications
(resigned)
Information Technology Group Co., Ltd. Currently, he is the deputy director (deputy general manager, deputy director and deputy director)
of the office of the board of directors (Strategic Development Department, Reform Office and Dispatched Director Office) of CCCG and
CCCC. He resigned as a director of the Company on December 12, 2022 due to work-related reasons.
Born in 1962, male, EMBA, professor-level senior engineer. He successively served as the engineer of Shanghai Port Machinery Plant, electrical
Fei Guo
engineer of the Technology Department, director of No. 5 Electrical Office, vice chief engineer, chief engineer, director of Development Office and
(resigned)
vice president of ZPMC. He resigned as the chief engineer of the Company on February 20, 2023 due to personal reasons.
Born in 1964, male, EMBA master, senior economist and senior engineer. He started working in August 1984, and successively served as
the manager and deputy secretary of the Party committee of No. 2 Engineering Company of CCCC Shanghai Dredging Co. Ltd.; executive
director, general manager and deputy secretary of the Party committee of the Waterway Construction Company of CCCC Shanghai
Wang Baihuan
Dredging Co. Ltd.; secretary of the Party Committee and deputy general manager of the Waterway Construction Company of CCCC
(resigned)
Shanghai Dredging Co. Ltd.; director, general manager and deputy secretary of the Party committee of CCCC Shanghai Dredging Co.
Ltd.; chairman (legal representative) and secretary of the Party committee of CCCC Guangzhou Dredging Co., Ltd. He resigned as the
vice president of the Company on July 29, 2022 due to work-related reasons.
Born in 1972, male, EMBA, professor-level senior engineer. He successively served as the technician, manager, deputy chief engineer,
Zhou Qi
general manager of the Electric Appliance Office and chief engineer of the Company. He resigned as the vice president of the Company
(resigned)
for personal reasons on March 14, 2022.
26
2022
Notes to other circumstances
□Applicable √Not applicable
2 Incumbency of current and resigned directors, supervisors and senior executives during the reporting period
1. Position at the shareholder entity
√Applicable □Not applicable
Name of in- Name of shareholding Starting date Expiration
Position
service staff entity of tenure date of tenure
China Communications March 5,
Liu Chengyun General manager assistant
Construction Group Co., Ltd. 2021
Deputy director (deputy general manager, deputy
China Communications director and deputy director) of the office of the board December
Yu Jingjing
Construction Group Co., Ltd. of directors (strategic development department, 2020
reform office and dispatched director office)
Statement of the position held in shareholding entity
2. Statement of the position held in other entities
√Applicable □Not applicable
Expiration
Name of in- Position held in Starting date of
Name of other entities date of
service staff other entities tenure
tenure
Zhu Xiaohuai CCCC Financial Leasing Co., Ltd. Director June 2018
Zhang Jian CCCC Shanghai Equipment Engineering Co., Ltd. Chairman of the board 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
Zhenhua Marine Energy (HK) Co., Ltd. Chairman of the board August 2021
Shen Qiuyuan
Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd. Director August 2021
Zhang
CCCC Industrial Investment Holding Company Ltd. Director December 2022
Jianxing
First Highway Engineering Group Co., Ltd. Director March 2020
You Hua CCCC Asset Management Co., Ltd. Director March 2020
CCCC Dredging (Group) Co., Ltd. Director October 2020
School of Software & Microelectronics, Peking University Professor 2015
Zhao Zhanbo
Yingda Taihe Life Insurance Co., Ltd. Independent director January 2022
Director of Accounting
School of Economics and Management of Tongji University,
Department, research January 2010
Investment Centre of Cheung Kong Graduate School of Business
scholar
Bai Yunxia Shanghai General Healthy Information and Technology Co., Ltd. Independent director February 2019
Shanghai Fubei Pet Products Co., Ltd. Independent director December 2019
Zhejiang Yonghe Refrigerant Co., Ltd. Independent director 2020
Zhejiang Aishida Electric Co., Ltd. Independent director 2020
China Europe International Business School Associate professor July 2016
Jiangsu Liyan Technology Co., Ltd. Independent director April 2017
Zhang Hua Zhejiang Hengwei Battery Co., Ltd. Independent director May 2017
Nanjing Sunlord Electronics Corporation Ltd. Independent director November 2017
Chengdu Qushui Science and Technology Co., Ltd. Independent director December 2019
27
Expiration
Name of in- Position held in Starting date of
Name of other entities date of
service staff other entities tenure
tenure
All China Lawyers Association Vice president December 2011
Guantao Law Firm Lawyer 2016
Sheng Tsingtao Brewery Co., Ltd. Independent director May 2020
Leiming Shanghai United Imaging Healthcare Co., Ltd. Independent director October 2020
Shanghai Foreign Service Holding Group Co., Ltd. Independent director September 2021
Kweichow Moutai Co., Ltd. Independent director May 2022
Statement of the position held in other entities
3 Remuneration of directors, supervisors and senior executives
√Applicable □Not applicable
In accordance with the regulations of “Articles of Association”, the
Decision-making process for the remuneration of directors, remuneration of directors and supervisors is subject to the general
supervisors and senior executives meeting of shareholders and the remuneration of the senior executives
is approved by the board of directors.
Basis for deciding the remuneration of directors, supervisors The basic salary plus performance bonus is assessed in combination
and senior executives with the quantitative index of production and operation, etc.
For details, please refer to the section “Changes in shares held by
Actual payout of remuneration for directors, supervisors and
current and resigned directors, supervisors and senior executives
senior executives
during the reporting period and their remunerations”
Total remuneration actually obtained by all directors, supervisors
RMB 15,347,500
and senior executives at the end of reporting period
4 Change in directors, supervisors and senior executives
√Applicable □Not applicable
Name Post Change Reason of change
Liu Chengyun General manager (president) Resigned Job adjustment
Director Elected Job adjustment
Ou Huisheng
General manager (president) Engaged Job adjustment
Zhu Xiaohuai Executive general manager Engaged Job adjustment
Zhang Jianxing Director 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 Qizhong Director, vice president Resigned Personal reasons
Yu Jingjing Director Resigned Job adjustment
Fei Guo Chief engineer Resigned Personal reasons
Wang Baihuan Vice president Resigned Job adjustment
Zhou Qi Vice president Resigned Personal reasons
5 Punishments by securities regulatory authority in recent three years
□Applicable √Not applicable
6 Others
□Applicable √Not applicable
28
2022
V. Related information about the board meetings convened during the reporting period
Session of meeting Convening date Resolutions
The 8th board meeting of Reviewed and approved the "Proposal on Formulating the Measures for Investor Relations Management of
March 7, 2022
the 8th board of directors ZPMC" and other proposals (see Extraordinary Announcement No. 2022-001 for details)
The 9th board meeting of Reviewed and approved the "Proposal on Reviewing the Working Report of Board of Directors in 2021" and
April 13, 2022
the 8th board of directors other proposals (see Extraordinary Announcement No. 2022-004 for details)
The 10th board meeting of Reviewed and approved the "Proposal on Reviewing the 2022 First Quarterly Report of the Company" and
April 29, 2022
the 8th board of directors other proposals (see Extraordinary Announcement No. 2022-010 for details)
The 11th board meeting of Reviewed and approved the "Proposal on Convening the 2021 Annual General Meeting of Shareholders of
June 6, 2022
the 8th board of directors the Company" and other proposals (see Extraordinary Announcement No. 2022-012 for details)
Reviewed and approved the "Proposal on Reviewing the Tenure System and Contractual Management
The 12th board meeting of
June 29, 2022 Measures and Work Plan for the Members of the Company’s Management Team" and other proposals (see
the 8th board of directors
Extraordinary Announcement No. 2022-018 for details)
The 13th board meeting of Reviewed and approved the "Proposal on Reviewing the Full Text and Summary of 2022 Semi-Annual
August 30, 2022
the 8th board of directors Report of the Company" and other proposals (see Extraordinary Announcement No. 2022-022 for details)
The 14th board meeting of
October 28, 2022 Reviewed and approved the "Proposal on Reviewing the 2022 Third Quarterly Report of the Company"
the 8th board of directors
The 15th board meeting of December 12, Reviewed and approved the "Proposal on Reviewing the Revision of the List of Proceedings of President’s
the 8th board of directors 2022 Office Meeting" and other proposals (see Extraordinary Announcement No. 2022-030 for details)
The 16th board meeting of December 28, Reviewed and approved the "Proposal on Reviewing and Formulating the Regulations on Board Meeting
the 8th board of directors 2022 Proposals" and other proposals (see Extraordinary Announcement No. 2022-035 for details)
VI. Duty performance of directors
1 Attendance of the directors at the board meetings and the general meeting of shareholders
Attendance
at the general
Attendance at Board Meetings
meeting of
Independent shareholders
Director name director or
not Times of Times of Personal Times of
Times of Times of
meetings should attendance Times of absence for two attendance at the
personal attendance by
be attended in through a absence consecutive general meeting
attendance telecommunication
this year proxy times of shareholders
Liu Chengyun No 9 9 7 0 0 No 1
Ou Huisheng No 3 3 1 0 0 No 1
Liu Qizhong
No 8 8 7 0 0 No 1
(resigned)
Zhu Xiaohuai No 9 9 8 0 0 No 3
Wang Cheng No 9 9 8 0 0 No 3
Zhang Jianxing No 1 1 1 0 0 No 0
Yu Jingjing
No 7 7 7 0 0 No 2
(resigned)
Sheng Leiming Yes 9 9 7 0 0 No 2
Zhang Hua Yes 9 8 7 1 0 No 1
Zhao Zhanbo Yes 9 9 9 0 0 No 2
Bai Yunxia Yes 9 9 9 0 0 No 3
Explanations for personal absence from the meeting for two consecutive times
□Applicable √Not applicable
Times of the board meetings convened in current year 9
Including: times of on-site meetings 0
Times of meetings convened through telecommunication 7
Times of meetings convened on-site and through telecommunication 2
29
2 Objections raised by directors on matters of the Company
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
VII. Specialized committees under the Board of Directors
√Applicable □Not applicable
1 Members of specialized committees under the board of directors
Category of specialized committee Members
Audit committee Bai Yunxia, Zhao Zhanbo, Sheng Leiming, Zhang Hua
Nominating committee Liu Chengyun, Wang Cheng, Zhao Zhanbo, Sheng Leiming, Zhang Hua
Remuneration and appraisal committee Zhao Zhanbo, Zhang Jianxing, Bai Yunxia, Zhang Hua
Strategy committee Liu Chengyun, Ou Huisheng, Zhang Jianxing, Bai Yunxia, Zhao Zhanbo
2 4 meetings convened by the audit committee during the reporting period
Convening Other performance
Contents Important comments and suggestions
date of duties
Reviewed the "Proposal on Reviewing 2022 Audit Work
Plan of the Company", "Proposal on Reviewing 2021
All proposals at this meeting were
April 11, 2022 Internal Control Evaluation Report of the Company",
unanimously reviewed and approved.
"Proposal on Reviewing Audit Committee’s Performance
Report for 2021", and other proposals
Reviewed the "Proposal on Reviewing the 2022 First All proposals at this meeting were
April 29, 2022
Quarterly Report of the Company" unanimously reviewed and approved.
August 30, Reviewed the "Proposal on Reviewing the Full Text and All proposals at this meeting were
2022 Summary of 2022 Semi-Annual Report of the Company" unanimously reviewed and approved.
October 25, Reviewed the "Proposal on Reviewing the 2022 Third All proposals at this meeting were
2022 Quarterly Report of the Company" unanimously reviewed and approved.
3 2 meetings convened by the nominating committee during the reporting period
Convening Important comments and Other performance
Contents
date suggestions of duties
Reviewed the "Proposal on Reviewing the Appointment of
August 30, Mr. Ou Huisheng as the General Manager (President) of the All proposals at this meeting were
2022 Company", and the "Proposal on Reviewing the Election of unanimously reviewed and approved.
Mr. Ou Huisheng as a Director of the Company"
Reviewed the "Proposal on Reviewing the Election of Mr.
December Zhang Jianxing as a Director of the Company", and the All proposals at this meeting were
12, 2022 "Proposal on Reviewing the Appointment of Mr. Zhu Xiaohuai unanimously reviewed and approved.
as the Executive General Manager of the Company"
4 2 meetings convened by the remuneration and appraisal committee during the reporting period
Convening Other performance
Contents Important comments and suggestions
date of duties
Reviewed the "Proposal on Reviewing the Remuneration
All proposals at this meeting were
April 11, 2022 of Directors and Senior Executives of the Company for
unanimously reviewed and approved.
the Year 2021"
December "Proposal on Reviewing Mr. Zhang Jianxing’s Director All proposals at this meeting were
12, 2022 Subsidy" unanimously reviewed and approved.
30
2022
5 1 meeting convened by the strategy committee during the reporting period
Convening Other performance
Contents Important comments and suggestions
date of duties
Reviewed the "Proposal on Reviewing the '14th FiveYear' All proposals at this meeting were
April 11, 2022
Overall Development Plan of the Company" unanimously reviewed and approved.
6 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
1 Particulars about employees
Number of in-service employees of the parent company 2,838
Number of in-service employees of the main subsidiaries 5,272
Total of in-service employees 8,110
Number of retired employees required to be paid by the parent company and its major subsidiaries
Functions
Category Number of staff
Production staff 3,093
Sales staff 292
Technical staff 3,514
Financial staff 152
Administrative staff 1,059
Total 8,110
Education background
Education level Number (person)
Master and above 691
Undergraduate 4,079
Junior College 1,817
Below Junior College 1,523
Total 8,110
2 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 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.
31
3 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.
4 Labor outsourcing
√Applicable □Not applicable
Total of labor outsourcing hours 6,793,308 hours
Total of labor outsourcing remuneration RMB 467,920,100
X.Proposal for profit distribution or convention of capital reserves into bonus shares
1 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 June 27, 2022, the 2021 Annual General Meeting of Shareholders of the Company considered and approved
the profit distribution plan for 2021. The profit distribution plan of the Company for 2021 is to distribute cash of RMB 0.05
(tax-included) per share on the basis of the total share capital registered on the registration date of the implementation
of equity distribution. Details of the above profit distribution matters are set out in the “Announcement of the Annual Profit
Distribution Plan for 2021” published by the Company on the Shanghai Securities News and the website of the Shanghai
Stock Exchange (www.sse.com.cn). During the reporting period, the Company’s profit distribution plan for 2021 has been
implemented.
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 372 million in 2022. As at December 31, 2022, the undistributed profit of the parent
company was approximately RMB 2.746 billion. The Board of Directors of the Company, taking into account the Company’s
business plan and capital demand in 2023, has prepared a profit distribution proposal for 2022: neither profit distribution nor
transfer of the capital public reserves into paid-in capital. The profit distribution proposal has yet to be submitted to the 2022
Annual General Meeting of Shareholders for consideration.
2 Special statement on the cash dividend policy
√Applicable □Not applicable
In compliance with the Company’s Articles of Association or the relevant resolutions of general meeting of
√Yes □No
shareholders
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
√Yes □No
interests are fully protected
3 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
32
2022
The reason for not representing the plan or proposal for profit distribution in cash
Purpose and use plan of the
though the profit is positive and the profit of the parent company available for
undistributed profit
distribution to the shareholders is positive in the reporting period
The national policy sets a tone to expand domestic demand, proposing to increase The Company’s undistributed profits for
investment in the optimization and upgrading of traditional manufacturing industries, expand 2022 are rolled over to the next year to
investment in advanced manufacturing, and improve the quality and efficiency of the meet the Company’s needs for general
manufacturing supply system. A new round of technological revolution represented by digital working capital, optimization of asset-liability
technology is flourishing worldwide, the industrial digitalization in equipment manufacturing, structure and future profit distribution. In the
port industry, marine engineering and other fields has become the trend of the times, and future, the Company will, as always, attach
the transformation and upgrading of digital and intelligent manufacturing of companies have importance to rewarding shareholders
become more urgent. by cash dividends, strictly comply with
Taking into account the current state of the industry, the Company’s development strategy, relevant laws and regulations as well as the
operation and business planning for the next phase, based on the Company’s capital needs provisions of the “Articles of Association”,
for 2023, asset-liability structure and the need to promote the sustainable development of comprehensively consider various factors
various businesses, and according to the “Regulatory Guidelines for Listed Companies No. related to profit distribution, actively fulfill
3 - Cash Dividends of Listed Companies” issued by the CSRC and the relevant provisions the Company's profit distribution policy from
of the “Articles of Association” on profit distribution policy, in order to ensure the long-term the perspective of facilitating the Company’s
healthy and sustainable development of the Company, steadily promote the subsequent development and shareholders’ return, and
development and better safeguard the shareholders’ long-term interests, the Company will share the results of company development
not distribute profits or transfer capital reserve to share capital for the year 2022. with investors.
4 Profit distribution and transfer of capital reserve to share capital for the reporting period
□Applicable √Not applicable
XI.The Company’s equity incentive plan, employee stock ownership plan or other incentives to the employees and
their impacts
1 Related incentives disclosed in provisional announcement, without progress or change in follow-up implementation
□Applicable √Not applicable
2 Incentives not disclosed in provisional announcement or with follow-up progress
Equity incentives
Other description
□Applicable √Not applicable
Information about employee stock ownership plan
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
3 Equity incentives awarded to the directors and senior executives during the reporting period
□Applicable √Not applicable
4 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.
33
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 control requirements, the internal control system of the Company integrated the business systems and
the management flow, established the internal control, risk and compliance management systems such as “Implementation
Rules for Internal Control Management Audit”, “Regulations on Comprehensive Risk Management” and “Regulations on
Compliance Management”, 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, 2022 and issued a standard internal control audit report with clean opinion (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
34
2022
Section V Environmental and Social Responsibility
I. Environmental Information
Establishment of environmental protection-related mechanisms Yes
Funds invested in environmental protection during the reporting period (Unit: RMB’0,000) 17,390.77
1 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 the major
subsidiaries: 0.0331 tons of sulfur dioxide, 0.1903 tons of nitrogen oxide, 40.4618 tons of particulate matter, 219.0549 tons of
VOCs, 363.5386 tons of COD, 41.1959 tons of ammonia nitrogen, 0.2376 tons of total phosphorus, and 54.8459 tons of total
nitrogen. All indicators were in line with the total emission control indicators of the 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” (GB 16297-1996), “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” (DB31/1025-2016)
of Shanghai City, “Emission Standard of Air Pollutants for Boiler” (DB31/387-2018) of Shanghai City, “Emission Standard
of Air Pollutants for Industrial Kiln and Furnace” (DB31/860-2014) of Shanghai City, “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, 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.
Name of main Total Permitted Over-
Name of the Number
pollutant and Emission Distribution Emission emissions emissions standard
company or of Applicable pollutant emission standards
characteristic mode of outlets concentration in 2022 in 2022 emissions
subsidiary outlets
pollutant (ton) (ton) in 2022
SO2 Integrated Emission Standard of Air Pollutants 0 0.066 None
(DB31/933-2015) of Shanghai City, Emission
NOx Pretreatment, 0 1.046 None
Standards of Pollutants for Shipbuilding Industry
57 (3 sand
Particulate matter (DB31/934-2015), Emission Standards for Odor 13.491 16.306 None
out of washing,
Pollutants (DB31/1025-2016), Emission Standard of
Shanghai service) coating and
Meeting Cooking Fume (DB31-844-2014), and Standard for
Zhenhua Heavy Organized canteen
VOCs relevant Fugitive Emission of Volatile Organic Compounds 149.129 174.047 None
Industries Co., Ltd. emission
standards (GB37822-2019)
Changxing Branch
COD 276.818 338.590 None
Wastewater Integrated Wastewater Discharge Standard
Ammonia nitrogen 2 31.413 37.160 None
outlet (DB31/199-2018) of Shanghai City
Total nitrogen 50.445 121.790 None
Integrated Emission Standard of Air Pollutants
Shanghai Zhenhua Particulate matter Sand (DB31/933-2015), Emission Standards for Odor 3.4811 21.941 None
Meeting
Port Machinery Organized washing, Pollutants (DB31/1025-2016) and Emission Standard
13 relevant
Heavy Industries emission coating and of Air Pollutants for Boiler (DB31/387-2018) of
standards
Co., Ltd. VOCs canteen Shanghai City, and Standard for Fugitive Emission of 46.86 53.100 None
Volatile Organic Compounds (GB37822-2019)
Integrated Emission Standard of Air Pollutants
Shanghai Zhenhua Particulate matter 11.555 30.140 None
7 (2 Pretreatment, Meeting (DB31/933-2015) and Emission Standards for Odor
Heavy Industries Port Organized
out of sand washing relevant Pollutants (DB31/1025-2016) of Shanghai City, and
Machinery General emission
service) and coating standards Standard for Fugitive Emission of Volatile Organic
Equipment Co., Ltd. VOCs 5.510 45.560 None
Compounds (GB37822-2019)
35
Name of main Total Permitted Over-
Name of the Number
pollutant and Emission Distribution Emission emissions emissions standard
company or of Applicable pollutant emission standards
characteristic mode of outlets concentration in 2022 in 2022 emissions
subsidiary outlets
pollutant (ton) (ton) in 2022
Particulate matter Integrated Emission Standard of Air Pollutants (GB 9.07 - None
16297-1996), Integrated Emission Standard of Air
Sand
Pollutants (DB324041-2021) and Emission Standard
13 washing and
Shanghai of Air Pollutants for Surface Coating of Engineering
VOCs coating Meeting 10.4558 - None
Zhenhua Heavy Organized Machinery and Steel Structure Manufacturing Industry
relevant (DB32/4147-2021) of Jiangsu Province
Industries Co., Ltd. emission
standards
Nantong Branch
COD Integrated Wastewater Discharge Standard (GB8978- 39.6447 139.364 None
Wastewater
2 1996), Wastewater Quality Standards for Discharge to
Ammonia outlet
Municipal Sewers (GB/T31962-2015) 0.062 11.230 None
nitrogen
SO2 Integrated Emission Standard of Air Pollutants (GB 0 0.010 None
Pretreatment,
16297-1996), Integrated Emission Standard of Air
sand
Pollutants (DB324041-2021), Emission Standard of
NOx washing, 0 0.044 None
Air Pollutants for Surface Coating of Engineering
coating,
19 Machinery and Steel Structure Manufacturing Industry
hazardous
Particulate matter (DB32/4147-2021) and Emission Standard of Air 0.82167 3.225 None
waste
Pollutants for Industrial Furnace and Kiln (DB32/3728-
Nantong Zhenhua warehouse
Meeting 2020) of Jiangsu Province, and Emission Standards
Heavy Equipment Organized and canteen
VOCs relevant for Odor Pollutants (GB14554-1993) 1.027717 16.125 None
Manufacturing emission
standards
Co., Ltd.
COD 8.05285 131.530 None
Ammonia
Integrated Wastewater Discharge Standard (GB8978- 2.82289 8.850
nitrogen Wastewater
1 1996), Wastewater Quality Standards for Discharge to
outlet
Municipal Sewers (GB/T31962-2015)
Total phosphorus 0.237605 1.468
Total nitrogen 4.400905 13.767 None
SO2 Integrated Emission Standard of Air Pollutants (GB 0.032 0.427 None
Heat 16297-1996), Emission Standard of Air Pollutants for
NOx treatment, Boiler (GB13271-2014), Integrated Emission Standard 0.15 0.167 None
11
ZPMC Particulate matter sand washing of Air Pollutants (DB324041-2021) of Jiangsu 0.63 5.561 None
Transmission and coating Meeting Province, and Emission Standards for Odor Pollutants
Organized
Machinery VOCs relevant (GB14554-1993) 0.61 7.400 None
emission
(Nantong) Co., standards
Ltd. COD 14.363 - None
Integrated Wastewater Discharge Standard (GB8978-
Wastewater
Ammonia 1 1996), Wastewater Quality Standards for Discharge to
outlet 2.388 - None
nitrogen Municipal Sewers (GB/T31962-2015)
SO2 0 0.00018 None
Integrated Emission Standard of Air Pollutants (GB
16297-1996), Emission Standards for Odor Pollutants
NOx Pretreatment, 0 0.002 None
(GB14554-1993), Integrated Emission Standard of
10 sand washing
Air Pollutants (DB324041-2021) of Jiangsu Province,
ZPMC Qidong Particulate matter and coating 0.94 1.090 None
Meeting and Emission Standard of Air Pollutants for Boiler
Marine Organized
relevant (GB13271-2014)
Engineering Co., VOCs emission 1.32 6.600 None
standards
Ltd.
COD 5.5 24.350 None
Domestic Integrated Wastewater Discharge Standard (GB8978-
1 wastewater 1996), Wastewater Quality Standards for Discharge to
Ammonia outlet Municipal Sewers (GB/T31962-2015) 0.56 1.390 None
nitrogen
SO2 0.0011 0.00357 None
Integrated Emission Standard of Air Pollutants
NOx Sand (DB31/933-2015), Emission Standards for Odor 0.0403 0.0858 None
10 washing and Pollutants (DB31/1025-2016), and Emission Standard
Shanghai Port Particulate matter coating Meeting of Air Pollutants for Boiler (DB31/387-2018) of 0.473 0.50475 None
Organized Shanghai City
Machinery Heavy VOCs relevant 4.1424 - None
emission
Industry Co., Ltd. standards
COD 19.16 - None
Wastewater Integrated Wastewater Discharge Standard
Ammonia 1
outlet (DB31/199-2018) 3.95 - None
nitrogen
Remark: - in the table indicates that the enterprise does not implement total amount control.
2.Construction and operation of pollution control facilities
√Applicable □Not applicable
The Company and the 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 including “Environmental Protection Responsibility System”, guided the
employees to give full play to their subjective initiative and strengthened supervision to ensure the control objectives were
compliant and under control. During the reporting period, the Company and the subsidiaries strengthened the comprehensive
management of waste gas, waste water, noise and hazardous waste, and various pollution prevention and control facilities
functioned normally.
36
2022
In 2022, Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, a subsidiary of the Company, promoted
the hot-dip galvanizing workshop underground pipe network renovation project; Shanghai Zhenhua Port Machinery
Heavy Industries Co., Ltd. promoted the technical improvement project of painting automatic production line; Shanghai
Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd. promoted the rainwater and sewage pipe network
restoration and treatment projects; Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch completed the upgrade
and reconstruction of existing painting workshop end treatment equipment, new hazardous waste warehouse and other
projects; ZPMC Qidong Marine Engineering Co., Ltd. completed the end treatment equipment upgrading and renovation
project of the pre-treatment workshop, and the end treatment upgrading and renovation project of the painting workshop
has been installed and tested for acceptance; Shanghai Port Machinery Heavy Industry Co., Ltd. installed 12 sets of welding
fume control facilities in the steel structure workshop; ZPMC Transmission Machinery (Nantong) Co., Ltd. completed the
replacement process of water-based paint on the surface of typical parts such as the inner surface of the box, the spokes of
the gears and the inner surface of the planetary frame, completed the installation and networking of environmental protection
video monitoring, completed the transformation of boilers with low nitrogen and the elimination of some forklifts of Model I;
Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. completed steel plate and plate pre-treatment dust technical
improvement project of the pre-treatment workshop.
3.Environmental impact assessment (EIA) of construction project and other administrative licenses for
environmental protection
√Applicable □Not applicable
During the reporting period, all the new, reconstruction and expansion projects of the Company and the subsidiaries
strictly implemented the relevant management regulations of “Three Simultaneities” for environmental protection of national
and local construction projects, and the projects had gone through the procedures of environmental impact assessment and
completion acceptance. Among them, Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd.,
ZPMC Transmission Machinery (Nantong) Co., Ltd. and Shanghai Port Machinery Heavy Industry Co., Ltd. had no new,
reconstruction or expansion project during the reporting period.
See the table below for details:
Name of the company or subsidiary Key projects in 2022 EIA approval / acceptance
Shanghai Zhenhua Heavy Industries
ZPMC Changxing intelligent port equipment industry project EIA approval has been obtained
Co., Ltd.
Shanghai Zhenhua Heavy Industries Intelligent manufacturing workshop for crane box of automated terminal of Shanghai Zhenhua Heavy Industries Independent acceptance
Co., Ltd. Changxing Branch Co., Ltd. completed
Shanghai Zhenhua Port Machinery Acceptance public
Technical improvement project of painting automatic production line
Heavy Industries Co., Ltd. announcement has been made
Supporting project of new A-class warehouse and self-use diesel supply point of Nantong Zhenhua Heavy Construction in batches; partial
Shanghai Zhenhua Heavy Industries
Equipment Manufacturing Co., Ltd. acceptance has been completed
Co., Ltd. Nantong Branch
Sand washing and painting workshop reconstruction and waste gas treatment upgrading project Completed and accepted
Expansion of 100,000t/a sand washing paint steel components to 200,000t/a and 2,980t stainless steel and Independent acceptance
nonferrous metal pipe fittings project of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. completed
Nantong Zhenhua Heavy Equipment Independent acceptance
Pre-treatment workshop exhaust gas and painting workshop waste gas upgrading project
Manufacturing Co., Ltd. completed
EIA registration form filing
Painting workshop (13-1/13-2) waste gas treatment facilities upgrading project
completed
Pre-treatment exhaust gas treatment project (regenerative combustion RTO) of ZPMC Qidong Marine EIA registration form filing
ZPMC Qidong Marine Engineering Engineering Co., Ltd. completed
Co., Ltd. Painting workshop exhaust gas treatment project (zeolite roller + regenerative combustion RTO) of ZPMC EIA registration form filing
Qidong Marine Engineering Co., Ltd. completed
According to the requirements of the “Interim Provisions on the Administration of Pollutant Emission Permit” and the
“Technical Specification for Application and Issuance of Pollutant Emission Permit” of the state, the Company and the
subsidiaries have successively applied for pollutant emission permits and applied for the change of pollutant emission
permits according to the actual discharge changes, and have 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.
37
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, in accordance 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)”, the branches and subsidiaries of the Company assessed the
existing environmental risks, prepared the emergency plans, and filed them with the local ecological and environmental
protection department. During the reporting period, all subordinate units revised, reviewed and filed the emergency
plan as required, and also actively carried out emergency drills to further prevent and effectively respond to unexpected
environmental pollution incidents.
5. Environmental self-monitoring plan
√Applicable □Not applicable
In accordance with the requirements of the emission permits and technical guidelines for self-monitoring of pollutant
discharge units, all branches and subsidiaries have developed their own monitoring programs and carried out regular self-
monitoring of environmental protection, and 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 Disclosure Platform for Enterprises and Institutions
and Jiangsu Pollutant Discharge Unit Self-monitoring Information Release Platform.
The 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 key emission units under the Company did not receive any administrative penalties for
environmental protection.
7.Other environmental information to be disclosed
√Applicable □Not applicable
Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, subordinate to the Company, has been included in
the list of mandatory cleaner production audits by Shanghai Municipal Bureau of Ecology and Environment and Shanghai
Municipal Commission of Economy and Information as a key enterprise. Shanghai Zhenhua Heavy Industries Co., Ltd.
Changxing Branch has signed the second round of cleaner production audit commissioned service agreement with a third-
party professional auditing agency, has completed the site survey, related data collection on raw and auxiliary material
consumption, energy and resource consumption, pollution sources outlets and pollutants discharge, and has preliminarily
determined the non/low cost option and medium/high cost option. clean production audit report is being prepared. The
cleaner production audit report is under preparation. The cleaner production audit and acceptance is expected to be
completed by the end of September 2023.
Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd., subordinate to the Company, has been included in the list
of mandatory cleaner production audit enterprises in 2022. In the future, Shanghai Zhenhua Port Machinery Heavy Industries
Co., Ltd. will strengthen the implementation of corporate entity responsibilities, organize and implement cleaner production
technology transformation and improve the level of cleaner production in accordance with relevant requirements.
2 Environmental protection of companies other than key emission units
√Applicable □Not applicable
1. Administrative penalties imposed for environmental issues
√Applicable □Not applicable
ZPMC Zhangjiagang Port Machinery Co., Ltd., subordinate to the Company, received environmental protection
penalties of RMB 456,303 for mobile paint shed built before approval and put into operation before acceptance, outdoor
paint operations, and storing some industrial solid waste such as scrap iron in the open air. ZPMC Zhangjiagang Port
Machinery Co., Ltd. immediately rectified the illegal and non-compliant issues involved, and stored industrial solid waste in
compliance; for the mobile paint shed, the company has obtained environmental impact assessment approval and completed
independent acceptance; all closed-loop rectification has been completed.
38
2022
2. Other environmental information disclosed with reference to key emission units
√Applicable □Not applicable
ZPMC Zhangjiagang Port Machinery Co., Ltd., subordinate to the Company, had 3 waste gas outlets and 1 waste
water outlet, and the main pollutants were wastewater (COD, ammonia nitrogen), waste gas (particles, VOCs), solid waste,
noise, etc. Discharge mode: 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 the manner of organized discharge after
treatment; the exhaust gas treatment facilities in the mobile paint room have been upgraded and accepted; the solid wastes
and the hazardous wastes were handed over to the qualified entities for treatment; plant boundary noise was discharged up
to the standard. The change of exhaust gas outlet in the emission permit was completed.
3. Reasons for not disclosing other environmental information
□Applicable √Not applicable
3 Information that is conducive to ecological protection, pollution prevention and environmental responsibility
performance
□Applicable √Not applicable
4 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) 20,303
Types of carbon reduction measures (e.g., using clean energy Distributed photovoltaic power generation, green lighting transformation,
for power generation, using carbon reduction technologies in the high-temperature carburizing transformation of heat treatment furnaces,
production process, developing and producing new products that adoption of energy-saving and efficient equipment, and air compressor
contribute to carbon reduction, etc.) station control system transformation, etc.
Specific description
√Applicable □Not applicable
The Company has installed and constructed rooftop distributed photovoltaic power generation systems in many subsidiaries
including Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd., Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing
Branch, and Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd., adopting the mode of Max. Self Use and surplus power
fed to the grid. In 2022, all units of the Company self-consumed a total of 28.69 million kwh of PV power, reducing carbon dioxide
emissions by approximately 15,623 tons (electricity emission factor of 5.81).
Through green lighting transformation, production and manufacturing process technology improvement, the use of energy-
saving and efficient equipment, and the completion of other energy-saving renovation projects and measures, an annual savings
of approximately 1,800 tons of standard coal and a reduction of approximately 4,680 tons of carbon dioxide emissions have been
achieved.
II.Fulfillment of social responsibility
1 Separate disclosure of social responsibility report, sustainability report or ESS report
√Applicable □Not applicable
For detailed report, please refer to the "2022 Environmental, Social, and Corporate Governance (ESG) Report of Shanghai
Zhenhua Heavy Industries Co., Ltd." disclosed on the same day as this report.
2 Particulars about social responsibility work
□Applicable √Not applicable
Specific description
√Applicable □Not applicable
ZPMC attached great importance to the construction of social responsibility, incorporated the concept of “making beauty
for the world” into the company’s corporate culture concept system, and continued to promote high-quality development of the
company through the release of social responsibility-related content, communication with interested parties and other channels.
Continuously improving the level of social responsibility management and standardizing the system. In 2022, the Company
continued to improve its social responsibility and ESG management effectiveness, revised the “ZPMC Social Responsibility
Management Measures” and other institutional documents, participated in drafting the “Enterprise ESG Evaluation System” association
standard and “Guidance for Enterprise ESG Disclosure” association standard led by the China Enterprise Reform and Development
Society, and completed the standard release in 2022, laying the foundation for standardized report writing and other work.
39
Actively promoting social welfare undertakings and creating a caring and responsible state-owned enterprise brand image.
The Company, together with the Youth League Committee of Lanping County, Nujiang Prefecture, Yunnan Province, held the “Small
Wish” public welfare activity, presenting gifts to 200 Yunnan students. “Free Donation of Platelets Explains Strong Love of ZPMC”,
the case of aiding leukemia employee, was nominated for the 2021 Shanghai Socialist Spiritual Civilization Good Deeds.
Caring and concerning for the assistance areas by improving education, creating job opportunities, and promoting consumer
spending on products from poor areas. In 2022, the Company invested a total of RMB 1,136,400 and introduced external funds
of RMB 50,000 for material donation, talent training, local agricultural products procurement and workwear customization in the
assistance areas; held 2 job fairs in the assistance areas and recruited 111 laborers; took advantage of the party building work
of state-owned enterprise and carried out joint party building activities with the general Party branch of Yongan Community
in Lamping County, presented gifts to local veteran party members and confirmed the twinning support relationship with 10
outstanding students.
III.Specific work on consolidating and expanding the progress in poverty alleviation and rural revitalization
√Applicable □Not applicable
Item of poverty alleviation and
Amount/content Description
rural revitalization
Total investment (’0,000 Yuan) 113.64
Including: fund (’0,000 Yuan) 30 The fund was used to support the construction of CCCC Lushui New Era Hope School
Amount equivalent to goods They were donated to Zhenhua Kindergarten in Tu’e Town, the Yongan Community
83.64
and materials (’0,000 Yuan) Kindergarten, and CCCC Lanping New Era Hope School
This data represented the direct beneficiaries of various donations, including
Number of people benefited education donations and creating job opportunities, while the number of people
1,147
(person) benefited from the consumption of products from poor areas and “the action of aiding
Xinjiang with work clothes” and other projects cannot be directly counted.
Forms of assistance (such as Improving education, creating job
development of local industry, opportunities, and boosting the
creating job opportunities, consumption of products from poor
improving education) areas
Specific description
√Applicable □Not applicable
1 Investigation
In 2022, the research team visited Yongan Community Kindergarten and CCCC Lanping New Era Hope School to gain
a deeper understanding of the assistance effect and concern about the follow-up assistance needs.
2 Capital investment
The Company invested RMB 300,000 to help build CCCC Lushui New Era Hope School, and donated teachers’
uniforms, teaching aids, books and other items totaling more than RMB 33,000 to Zhenhua Kindergarten in Tu’e Town
according to the 2022 targeted assistance work plan. The Company provided grount paint worth RMB 12,000 to the
basketball court renovation project of Yongan Community, and actively introduced RMB 50,000 of private construction funds
to donate camera kits and early childhood teaching aids and appliances to Yongan Community Kindergarten. The Youth
League Committee of ZPMC, together with Lanping County Committee of Communist Youth League, carried out the “Making
a Small Dream True” for the poor students in CCCC Lanping New Era Hope School and financed and invested RMB 25,100
to make wishes of 200 in-campus students true.
3 Talents and employment support
According to the actual needs of Lanping County, the Company trained 10 grassroots cadres and 1 rural revitalization
leader for the paired assistance areas. Changxing Branch, of the Company sent representatives to Lanping County to carry
out recruitment work during the year, including 2 job fairs in Lanping County and 2 job fairs in Tu’e Town, Lanping County.
The company actively mobilized intended personnel to work outside, and recruited a total of 111 persons from Lanping
County throughout the year.
40
2022
4 Consumption assistance
The Company organized the purchase and initiated employees to buy the characteristic agricultural products from
the assistance areas, including red soft rice, walnut oil, dendranthema morifolium and black Chinese wolfberry; actively
contacted the external units and sold the agricultural products such as rose and dendranthema morifolium for consumption
assistance; actively implemented the action of “aiding Xinjiang with work clothes”, and 5 units under the Company ordered
2,971 sets of work clothes and 252 pairs of work shoes from Yengisar County.
5 Pairing of Party building
In 2022, the Third Party Branch of the Party Committee of the Company Headquarters and the General Party Branch
of Yongan Community in Lanping County jointly carried out the Party day activity on the theme of “Zongzi connects the two
places”. The Third Party Branch of the Party Committee of the Company Headquarters presented Dragon Boat Festival gifts
to 39 veteran Party members of Yongan Community Party Branch; 10 party members of the Third Party Branch confirmed
the assistance relationship with 10 junior students of the Yongan Community and donated learning materials to them. The
Shanghai-Yunnan Cooperation Inspection Team from Lanping County visited the Company for inspection and exchange,
and the two sides carried out in-depth communication on further improving the transfer of surplus labor and comprehensively
promoting the rural revitalization work.
6 Strengthening propaganda
The Company actively propagandized the results of assistance work through the Wechat official accounts of the
headquarters and the units under it, and released 8 promotional articles on assistance themes throughout the year, which
received wide attention.
41
Section VI Important Events
I.Fulfillment of commitments
1 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
2 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 □Failing to reach √Not applicable
3 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
1 Analysis and explanation of the Company on the causes and the impacts of the changes in accounting policies
and accounting estimates
□Applicable √Not applicable
2 Analysis and explanation of the cause of correction of significant accounting errors and their impacts by the Company
□Applicable √Not applicable
3 Communication with former CPA firm
□Applicable √Not applicable
4 Other description
□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 4,800,000
Audit term of the domestic accounting firm 7
Name of Certified Public Accountant of the domestic accounting firm Gao Chong, Gu Chengli
Consecutive years of audit services provided by CPAs of the 1, 4
domestic accounting firm
42
2022
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 9th meeting of the 8th Board of Directors held on April 13, 2022 and the 2021 Annual General Meeting of
Shareholders of the Company held on June 27, 2022, the Company reviewed and approved the "Proposal on the
Engagement of Domestic Audit Accounting Firm for the Year 2022" and agreed to renew the engagement of Ernst & Young
Hua Ming LLP as the domestic auditing firm of the Company for the year 2022.
Particulars about reappointment of the accounting firm in the auditing period
□Applicable √Not applicable
VII. Delisting risk
1 Reasons for the delisting risk warning
□Applicable √Not applicable
2 Countermeasures to be taken by the Company
□Applicable √Not applicable
3 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
√Existence of major lawsuit and arbitration in the year □No major lawsuit or arbitration in the year
1 Lawsuit and arbitration already disclosed in provisional announcement, without follow-up progress
□Applicable √Not applicable
2 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 Type of Amount Execution of
and amount Progress Results of the lawsuit
Plaintiff Defendant bearing lawsuit involved adjudication
Background of the lawsuit (arbitration) caused in lawsuit (arbitration) and
(applicant) (respondent) joint and in lawsuit of lawsuit
by lawsuit (arbitration) impacts
liabilities arbitration (arbitration) (arbitration)
(arbitration)
or not
At the end of February 2014, the Company The first item of the first
completed the acquisition of the former judgment of the Shanghai
Jiangsu Daoda Ocean Engineering Co., High People’s Court was
Ltd through capital increase and held 67% affirmed; the second
An
of the shares. At the same time, it was to fifth items of the first
enforcement
Shanghai agreed that the losses of the company, judgment were reversed;
strategy
Zhenhua was borne by the former shareholders the three defendants were
On March study
Heavy including Nantong Huafu Port Co., Ltd, Li ordered to pay the total
Nantong 29, 2022, has been
Industries Aidong and Zhao Xiaohua before February costs and damages of
Huafu Port the Supreme conducted
Co., Ltd, 28, 2014. During the subsequent business RMB 27,433,970 and the
Co., Ltd, Li None Lawsuit 36,872.21 0 People’s Court and an
and ZPMC process, it was found that the former corresponding overdue
Aidong, and issued a final application
Qidong Daoda Company untruthfully disclosed interest to ZPMC Qidong
Zhao Xiaohua judgment on for
Marine some matters of lawsuit or debts, resulting Marine Engineering Co.,
the case. enforcement
Engineering in a series of losses of the Company. Ltd.; the first trial verdict
will be filed
Co., Ltd. Through the related audit and readjustment that the respondents
with the
etc., it was deemed that the loss of RMB should compensate
court.
368.7221 million Yuan should be in borne Shanghai Zhenhua Heavy
in the former shareholders and the lawsuit Industries Co., Ltd of RMB
was prosecuted again after an inconclusive 1 million for the breach of
press for payment. contract were affirmed.
43
3 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
1 Related transactions relevant to routine business
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
The 9th meeting of the 8th Board of Directors on April 13, 2022 and the 2021 Annual General Meeting of Shareholders of
the Company on June 27, 2022 reviewed and approved the "Proposal on Reviewing the Signing of Framework Agreement
on Routine Related Transactions for 2022-2024", which has been announced and is detailed in Announcement No. 2022-
004, 2022-008 and 2022-017.
Unit: Yuan Currency: CNY
Reason
Proportion for great
Pricing in the Settlement differences
Type of Price of
Content of related principle Amount of related amount mode of between
Related party Relationship related related Market price
transaction of related transaction of similar associated the bargain
transaction transaction
transaction transactions transaction price and
(%) market
price
Jiangsu Longyuan Zhenhua Sales of Project income/ Pricing based Monetary
Joint venture 1,288,582,356 1,288,582,356 4.27 1,288,582,356 /
Marine Engineering Co., Ltd goods lease of assets on market price funds
China Road & Bridge Subsidiary of the Sales of Project income/ Pricing based Monetary
446,539,717 446,539,717 1.48 446,539,717 /
Corporation holding parent company goods lease of assets on market price funds
China Harbor Engineering Subsidiary of the Sales of Project income/ Pricing based Monetary
441,437,766 441,437,766 1.46 441,437,766 /
Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Haifeng Wind Power Subsidiary of the Sales of Project income/ Pricing based Monetary
374,901,683 374,901,683 1.24 374,901,683 /
Development Co., Ltd. holding parent company goods lease of assets on market price funds
No.1 Engineering Co.,
Subsidiary of the Sales of Project income/ Pricing based Monetary
Ltd. of CCCC First Harbor 213,716,814 213,716,814 0.71 213,716,814 /
holding parent company goods lease of assets on market price funds
Engineering Co., Ltd.
No.2 Engineering Co., Ltd.
Subsidiary of the Sales of Project income/ Pricing based Monetary
of CCCC Third Harbor 208,387,950 208,387,950 0.69 208,387,950 /
holding parent company goods lease of assets on market price funds
Engineering Co., Ltd.
CCCC First Harbor Subsidiary of the Sales of Project income/ Pricing based Monetary
167,241,398 167,241,398 0.55 167,241,398 /
Engineering Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Third Harbor Subsidiary of the Sales of Project income/ Pricing based Monetary
124,835,563 124,835,563 0.41 124,835,563 /
Engineering Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Third Highway Subsidiary of the Sales of Project income/ Pricing based Monetary
57,013,916 57,013,916 0.19 57,013,916 /
Engineering Co. Ltd. holding parent company goods lease of assets on market price funds
CCCC Fourth Harbor Subsidiary of the Sales of Project income/ Pricing based Monetary
45,044,248 45,044,248 0.15 45,044,248 /
Engineering Co., Ltd holding parent company goods lease of assets on market price funds
CCCC Second Highway Subsidiary of the Sales of Project income/ Pricing based Monetary
36,106,344 36,106,344 0.12 36,106,344 /
Engineering Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Tianhe Mechanical
Subsidiary of the Sales of Project income/ Pricing based Monetary
Equipment Manufacturing 32,668,690 32,668,690 0.11 32,668,690 /
holding parent company goods lease of assets on market price funds
Co., Ltd
China Communications Subsidiary of the Sales of Project income/ Pricing based Monetary
28,946,178 28,946,178 0.10 28,946,178 /
Construction Company Ltd. holding parent company goods lease of assets on market price funds
Road & Bridge International Subsidiary of the Sales of Project income/ Pricing based Monetary
10,764,510 10,764,510 0.04 10,764,510 /
Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC - SHEC Second Subsidiary of the Sales of Project income/ Pricing based Monetary
8,060,013 8,060,013 0.03 8,060,013 /
Highway Engineering Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Tianjin Industry and Subsidiary of the Sales of Project income/ Pricing based Monetary
6,767,181 6,767,181 0.02 6,767,181 /
Trade Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Second Harbor Subsidiary of the Sales of Project income/ Pricing based Monetary
3,102,305 3,102,305 0.01 3,102,305 /
Engineering Co., Ltd. holding parent company goods lease of assets on market price funds
44
2022
Reason
Proportion for great
Pricing in the Settlement differences
Type of Price of
Content of related principle Amount of related amount mode of between
Related party Relationship related related Market price
transaction of related transaction of similar associated the bargain
transaction transaction
transaction transactions transaction price and
(%) market
price
ZPMC Southeast Asia Pte. Sales of Project income/ Pricing based Monetary
Associated company 2,611,725 2,611,725 0.01 2,611,725 /
Ltd goods lease of assets on market price funds
Road and Bridge Construction
Chongqing Fengshi Subsidiary of the Sales of Project income/ Pricing based Monetary
1,202,880 1,202,880 0.00 1,202,880 /
Expressway Development holding parent company goods lease of assets on market price funds
Co., Ltd
CCCC Tianjin Dredging Co., Subsidiary of the Sales of Project income/ Pricing based Monetary
1,198,938 1,198,938 0.00 1,198,938 /
Ltd. holding parent company goods lease of assets on market price funds
CCCC Shanghai Equipment Subsidiary of the Sales of Project income/ Pricing based Monetary
838,967 838,967 0.00 838,967 /
Engineering Co., Ltd. holding parent company goods lease of assets on market price funds
CCCC Construction Group
Co., Ltd. (former: CCCC Subsidiary of the Sales of Project income/ Pricing based Monetary
270,456 270,456 0.00 270,456 /
Fourth Highway Engineering holding parent company goods lease of assets on market price funds
Co., Ltd.)
CCCC (Xiamen) Information Subsidiary of the Sales of Project income/ Pricing based Monetary
166,240 166,240 0.00 166,240 /
Co., Ltd holding parent company goods lease of assets on market price funds
ZPMC Changzhou Coatings Sales of Project income/ Pricing based Monetary
Associated company 160,463 160,463 0.00 160,463 /
Co., Ltd. goods lease of assets on market price funds
CCCC Third Harbor Subsidiary of the Rendering of Project income/ Pricing based Monetary
283,109,058 283,109,058 0.94 283,109,058 /
Engineering Co., Ltd. holding parent company service lease of assets on market price funds
CCCC Third Highway Subsidiary of the Rendering of Project income/ Pricing based Monetary
36,092,540 36,092,540 0.12 36,092,540 /
Engineering Co. Ltd. holding parent company service lease of assets on market price funds
Road and Bridge Construction
Chongqing Fengfu Subsidiary of the Rendering of Project income/ Pricing based Monetary
2,335,010 2,335,010 0.01 2,335,010 /
Expressway Development holding parent company service lease of assets on market price funds
Co., Ltd
Jiangsu Longyuan Zhenhua Rendering of Project income/ Pricing based Monetary
Joint venture 1,826,083 1,826,083 0.01 1,826,083 /
Marine Engineering Co., Ltd service lease of assets on market price funds
Shanghai Jiangtian Industrial Subsidiary of the Rendering of Project income/ Pricing based Monetary
1,504,488 1,504,488 0.00 1,504,488 /
Co., Ltd. holding parent company service lease of assets on market price funds
CCCC Shanghai Dredging Subsidiary of the Rendering of Project income/ Pricing based Monetary
1,458,199 1,458,199 0.00 1,458,199 /
Co., Ltd. holding parent company service lease of assets on market price funds
China Road & Bridge Subsidiary of the Rendering of Project income/ Pricing based Monetary
1,201,790 1,201,790 0.00 1,201,790 /
Corporation holding parent company service lease of assets on market price funds
Road and Bridge Construction
Chongqing Fengshi Subsidiary of the Rendering of Project income/ Pricing based Monetary
756,398 756,398 0.00 756,398 /
Expressway Development holding parent company service lease of assets on market price funds
Co., Ltd
CCCC Second Harbor Subsidiary of the Rendering of Project income/ Pricing based Monetary
567,172 567,172 0.00 567,172 /
Engineering Co., Ltd. holding parent company service lease of assets on market price funds
CCCC Tianjin Dredging Co., Subsidiary of the Rendering of Project income/ Pricing based Monetary
471,698 471,698 0.00 471,698 /
Ltd. holding parent company service lease of assets on market price funds
CCCC First Harbor Subsidiary of the Rendering of Project income/ Pricing based Monetary
452,830 452,830 0.00 452,830 /
Engineering Co., Ltd. holding parent company service lease of assets on market price funds
No.2 Engineering Co.,
Subsidiary of the Rendering of Project income/ Pricing based Monetary
Ltd. of CCCC First Harbor 188,679 188,679 0.00 188,679 /
holding parent company service lease of assets on market price funds
Engineering Co., Ltd.
Chongqing Yongjiang
Expressway Investment and Subsidiary of the Rendering of Project income/ Pricing based Monetary
172,087 172,087 0.00 172,087 /
Construction Co., Ltd of FHEC holding parent company service lease of assets on market price funds
of CCCC
China Communications
Subsidiary of the Rendering of Project income/ Pricing based Monetary
Information Technology Group 47,830 47,830 0.00 47,830 /
holding parent company service lease of assets on market price funds
Co., Ltd.
Road & Bridge International Subsidiary of the Rendering of Project income/ Pricing based Monetary
41,038 41,038 0.00 41,038 /
Co., Ltd. holding parent company service lease of assets on market price funds
ZPMC Changzhou Coatings Rendering of Project income/ Pricing based Monetary
Associated company 40,201 40,201 0.00 40,201 /
Co., Ltd. service lease of assets on market price funds
Jiujiang Education Consulting
Subsidiary of the Rendering of Project income/ Pricing based Monetary
Co., Ltd of CCCC Second 1,698 1,698 0.00 1,698 /
holding parent company service lease of assets on market price funds
Harbor Engineering Co., Ltd.
No.2 Engineering Co., Ltd. Consigned
Subsidiary of the Receipt of Pricing based Monetary
of CCCC Third Harbor processing for the 452,903,273 452,903,273 1.73 452,903,273 /
holding parent company services on market price funds
Engineering Co., Ltd. Company
Consigned
CCCC Shanghai Equipment Subsidiary of the Receipt of Pricing based Monetary
processing for the 368,095,891 368,095,891 1.41 368,095,891 /
Engineering Co., Ltd. holding parent company services on market price funds
Company
Consigned
CCCC First Highway Subsidiary of the Receipt of Pricing based Monetary
processing for the 293,136,519 293,136,519 1.12 293,136,519 /
Engineering Co., Ltd. holding parent company services on market price funds
Company
Consigned
CCCC Second Harbor Subsidiary of the Receipt of Pricing based Monetary
processing for the 227,255,981 227,255,981 0.87 227,255,981 /
Engineering Co., Ltd. holding parent company services on market price funds
Company
45
Reason
Proportion for great
Pricing in the Settlement differences
Type of Price of
Content of related principle Amount of related amount mode of between
Related party Relationship related related Market price
transaction of related transaction of similar associated the bargain
transaction transaction
transaction transactions transaction price and
(%) market
price
Consigned
CCCC Third Highway Subsidiary of the Receipt of Pricing based Monetary
processing for the 220,317,269 220,317,269 0.84 220,317,269 /
Engineering Co. Ltd. holding parent company services on market price funds
Company
Consigned
CCCC Tianjin Dredging Co., Subsidiary of the Receipt of Pricing based Monetary
processing for the 152,397,803 152,397,803 0.58 152,397,803 /
Ltd. holding parent company services on market price funds
Company
Consigned
CCCC Third Harbor Subsidiary of the Receipt of Pricing based Monetary
processing for the 134,197,024 134,197,024 0.51 134,197,024 /
Engineering Co., Ltd. holding parent company services on market price funds
Company
Consigned
Road & Bridge East China Subsidiary of the Receipt of Pricing based Monetary
processing for the 50,674,337 50,674,337 0.19 50,674,337 /
Engineering Co., Ltd. holding parent company services on market price funds
Company
Consigned
ZPMC Southeast Asia Pte. Receipt of Pricing based Monetary
Associated company processing for the 40,615,972 40,615,972 0.16 40,615,972 /
Ltd services on market price funds
Company
CCCC Construction Group
Consigned
Co., Ltd. (former: CCCC Subsidiary of the Receipt of Pricing based Monetary
processing for the 28,301,887 28,301,887 0.11 28,301,887 /
Fourth Highway Engineering holding parent company services on market price funds
Company
Co., Ltd.)
China Communications Consigned
Subsidiary of the Receipt of Pricing based Monetary
Information Technology Group processing for the 18,659,881 18,659,881 0.07 18,659,881 /
holding parent company services on market price funds
Co., Ltd. Company
Consigned
Jiangsu Longyuan Zhenhua Receipt of Pricing based Monetary
Joint venture processing for the 14,150,943 14,150,943 0.05 14,150,943 /
Marine Engineering Co., Ltd services on market price funds
Company
Consigned
CCCC Shanghai Dredging Subsidiary of the Receipt of Pricing based Monetary
processing for the 9,147,073 9,147,073 0.03 9,147,073 /
Co., Ltd. holding parent company services on market price funds
Company
Shanghai Communications Consigned
Subsidiary of the Receipt of Pricing based Monetary
Construction Contracting Co., processing for the 7,018,983 7,018,983 0.03 7,018,983 /
holding parent company services on market price funds
Ltd. Company
Consigned
China Road & Bridge Subsidiary of the Receipt of Pricing based Monetary
processing for the 4,281,621 4,281,621 0.02 4,281,621 /
Corporation holding parent company services on market price funds
Company
Shanghai China
Consigned
Communications Water Subsidiary of the Receipt of Pricing based Monetary
processing for the 4,139,151 4,139,151 0.02 4,139,151 /
Transportation Design & holding parent company services on market price funds
Company
Research Co., Ltd.
Consigned
CCCC Second Highway Subsidiary of the Receipt of Pricing based Monetary
processing for the 3,475,462 3,475,462 0.01 3,475,462 /
Consultants Co., Ltd. holding parent company services on market price funds
Company
Consigned
CCCC First Harbor Subsidiary of the Receipt of Pricing based Monetary
processing for the 2,321,373 2,321,373 0.01 2,321,373 /
Engineering Co., Ltd. holding parent company services on market price funds
Company
Consigned
Shanghai Waterway Logistics Subsidiary of the Receipt of Pricing based Monetary
processing for the 1,492,658 1,492,658 0.01 1,492,658 /
Co., Ltd holding parent company services on market price funds
Company
Installation Engineering Co., Consigned
Subsidiary of the Receipt of Pricing based Monetary
Ltd. of CCCC First Harbor processing for the 1,344,340 1,344,340 0.01 1,344,340 /
holding parent company services on market price funds
Engineering Co. Ltd. Company
Consigned
Shanghai Interlink Road & Subsidiary of the Receipt of Pricing based Monetary
processing for the 1,159,917 1,159,917 0.00 1,159,917 /
Bridge Engineering Co., Ltd. holding parent company services on market price funds
Company
Consigned
CNPC & CCCC Petroleum Subsidiary of the Receipt of Pricing based Monetary
processing for the 965,323 965,323 0.00 965,323 /
Sales Co., Ltd. holding parent company services on market price funds
Company
Consigned
CCCC Third Harbor Subsidiary of the Receipt of Pricing based Monetary
processing for the 939,041 939,041 0.00 939,041 /
Consultants Co., Ltd. holding parent company services on market price funds
Company
ZPMC Mediterranean Liman Consigned
Receipt of Pricing based Monetary
Makinalari Ticaret Anonim Joint venture processing for the 885,446 885,446 0.00 885,446 /
services on market price funds
Sirketi Company
Consigned
CCCC Xingyu Technology Subsidiary of the Receipt of Pricing based Monetary
processing for the 861,426 861,426 0.00 861,426 /
Co., Ltd holding parent company services on market price funds
Company
Beijing BLDJ Landscape Consigned
Subsidiary of the Receipt of Pricing based Monetary
Architecture Institute Co., processing for the 366,037 366,037 0.00 366,037 /
holding parent company services on market price funds
LTD. Company
Consigned
CCCC Second Harbor Subsidiary of the Receipt of Pricing based Monetary
processing for the 230,063 230,063 0.00 230,063 /
Consultants Co., Ltd. holding parent company services on market price funds
Company
Consigned
CCCC (Xiamen) Information Subsidiary of the Receipt of Pricing based Monetary
processing for the 45,217 45,217 0.00 45,217 /
Co., Ltd holding parent company services on market price funds
Company
46
2022
Reason
Proportion for great
Pricing in the Settlement differences
Type of Price of
Content of related principle Amount of related amount mode of between
Related party Relationship related related Market price
transaction of related transaction of similar associated the bargain
transaction transaction
transaction transactions transaction price and
(%) market
price
CCCC Shanghai Equipment Subsidiary of the Purchase of Providing materials Pricing based Monetary
370,483,873 370,483,873 1.42 370,483,873 /
Engineering Co., Ltd. holding parent company goods for the Company on market price funds
ZPMC Changzhou Coatings Purchase of Providing materials Pricing based Monetary
Associated company 131,829,860 131,829,860 0.50 131,829,860 /
Co., Ltd. goods for the Company on market price funds
CNPC & CCCC Petroleum Subsidiary of the Purchase of Providing materials Pricing based Monetary
53,399,047 53,399,047 0.20 53,399,047 /
Sales Co., Ltd. holding parent company goods for the Company on market price funds
CCCC Third Harbor Subsidiary of the Purchase of Providing materials Pricing based Monetary
37,699,113 37,699,113 0.14 37,699,113 /
Engineering Co., Ltd. holding parent company goods for the Company on market price funds
CCCC Third Harbor Subsidiary of the Purchase of Providing materials Pricing based Monetary
31,363,816 31,363,816 0.12 31,363,816 /
Consultants Co., Ltd. holding parent company goods for the Company on market price funds
ZPMC Southeast Asia Pte. Purchase of Providing materials Pricing based Monetary
Associated company 28,685,372 28,685,372 0.11 28,685,372 /
Ltd goods for the Company on market price funds
Shanghai Jiangtian Industrial Subsidiary of the Purchase of Providing materials Pricing based Monetary
13,419,612 13,419,612 0.05 13,419,612 /
Co., Ltd. holding parent company goods for the Company on market price funds
CCCC Water Transportation
Subsidiary of the Purchase of Providing materials Pricing based Monetary
Planning and Design Institute 8,336,283 8,336,283 0.03 8,336,283 /
holding parent company goods for the Company on market price funds
Co., Ltd.
Chuwa Risheng (Beijing) Subsidiary of the Purchase of Providing materials Pricing based Monetary
7,280,458 7,280,458 0.03 7,280,458 /
International Trade Co., Ltd holding parent company goods for the Company on market price funds
Jiangmen Hangtong
Shipbuilding Co., Ltd. Subsidiary of the Purchase of Providing materials Pricing based Monetary
6,318,584 6,318,584 0.02 6,318,584 /
of CCCC Fourth Harbor holding parent company goods for the Company on market price funds
Engineering Co. Ltd.
Shanghai Zhensha Longfu Subsidiary of the Purchase of Providing materials Pricing based Monetary
5,974,560 5,974,560 0.02 5,974,560 /
Machinery Co., Ltd. holding parent company goods for the Company on market price funds
Installation Engineering Co.,
Subsidiary of the Purchase of Providing materials Pricing based Monetary
Ltd. of CCCC First Harbor 4,867,257 4,867,257 0.02 4,867,257 /
holding parent company goods for the Company on market price funds
Engineering Co. Ltd.
China Communications
Subsidiary of the Purchase of Providing materials Pricing based Monetary
Information Technology Group 4,001,152 4,001,152 0.02 4,001,152 /
holding parent company goods for the Company on market price funds
Co., Ltd.
CCCC Tianjin Industry and Subsidiary of the Purchase of Providing materials Pricing based Monetary
3,899,530 3,899,530 0.01 3,899,530 /
Trade Co., Ltd. holding parent company goods for the Company on market price funds
CCCC Fourth Harbor Subsidiary of the Purchase of Providing materials Pricing based Monetary
3,623,894 3,623,894 0.01 3,623,894 /
Consultants Co., Ltd. holding parent company goods for the Company on market price funds
ZPMC Mediterranean Liman
Purchase of Providing materials Pricing based Monetary
Makinalari Ticaret Anonim Joint venture 2,347,434 2,347,434 0.01 2,347,434 /
goods for the Company on market price funds
Sirketi
CCCC Highway Bridges
Subsidiary of the Purchase of Providing materials Pricing based Monetary
National Engineering 1,189,381 1,189,381 0.00 1,189,381 /
holding parent company goods for the Company on market price funds
Research Centre Co., Ltd.
CCCC (Xiamen) Information Subsidiary of the Purchase of Providing materials Pricing based Monetary
1,022,057 1,022,057 0.00 1,022,057 /
Co., Ltd holding parent company goods for the Company on market price funds
Xing An Ji Engineering Co.,
Subsidiary of the Purchase of Providing materials Pricing based Monetary
Ltd. of CCCC Third Harbor 775,633 775,633 0.00 775,633 /
holding parent company goods for the Company on market price funds
Engineering Co., Ltd.
CCCC Xingyu Technology Subsidiary of the Purchase of Providing materials Pricing based Monetary
266,896 266,896 0.00 266,896 /
Co., Ltd holding parent company goods for the Company on market price funds
Shanghai Waterway Logistics Subsidiary of the Purchase of Providing materials Pricing based Monetary
33,033 33,033 0.00 33,033 /
Co., Ltd holding parent company goods for the Company on market price funds
Total / 6,587,029,856 / / /
Details of large amount of sales returns None
The 2021 Annual General Meeting of Shareholders of the Company reviewed and approved the
"Proposal on Reviewing the Signing of Framework Agreement on Routine Related Transactions for
2022-2024". In 2022, the amount of the annual related transactions in the normal business between the
Explanation for related transactions
Company and the subsidiaries and China Communications Construction Co., Ltd. and the subsidiaries
was about RMB 6.587 billion, which did not exceed the upper limit of the routine related transactions
approved by the 2021 Annual General Meeting of Shareholders.
3.Events not disclosed in provisional announcements
2 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
47
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
4.Where agreed performance is involved, the performance achievement during the reporting period should be
disclosed
□Applicable √Not applicable
3 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
Related transactions concerning the establishment of a construction
photovoltaic company in a joint venture with CCCC Industrial Investment See Extraordinary Announcement No. 2022-014 for details
Holding Co., Ltd.
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
4 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
5 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
Unit: Yuan Currency: CNY
Amount incurred in the current period
Maximum daily Deposit interest December 31, Total withdrawal December 31,
Related party Relationship Total deposit amount in
deposit limit rate range 2021 amount in the 2022
the current period
current period
CCCC Finance Subsidiary of the holding
1,600,000,000 0.46%-1.76% 1,600,000,000 7,205,270,129 8,804,834,561 435,568
Company Ltd. parent company
Total / / / 1,600,000,000 7,205,270,129 8,804,834,561 435,568
48
2022
2. Loan business
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the current period
Loan interest December 31, Total repayment December 31,
Related party Relationship Loan limit Total loan amount in
rate range 2021 amount in the 2022
the current period
current period
CCCC Finance Subsidiary of the
2,000,000,000 2% 100,000,000 544,000,000 - 644,000,000
Company Ltd. holding parent company
Total / / / 100,000,000 544,000,000 - 644,000,000
3. Credit business or other financial business
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Business
Related party Relationship Total amount Actual amount incurred
type
CCCC Finance Subsidiary of the holding parent
Credit 2,000,000,000 427,450,000
Company Ltd. company
CCCC Xiongan Financial Subsidiary of the holding parent
Factoring 300,000,000 120,000,000
Leasing Co., Ltd. company
4. Other description
□Applicable √Not applicable
6 Others
□Applicable √Not applicable
XIII.Material contracts and their performance
1 Trusteeship, contracting and leasing matters
1. Trusteeship
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Leasing
√Applicable □Not applicable
Unit:’0,000 Yuan Currency: CNY
Basis for Impacts of
Amount Starting Termination Related
Leased Income from determining income from
Name of lessor Name of lessee involved in date of date of transaction Relationship
assets leasing income from leasing on the
leased assets leasing leasing or not
leasing Company
Shanghai Shanghai Zhenlong
Zhenhua Heavy Asset Management Lease of August 10,
22,965.71 July 9, 2025 3,215.09 Agreed 3,215.09 No
Industries Co., Co., Ltd, and other houses 2012
Ltd. companies
Shanghai Shanghai Changyin
Zhenhua Heavy Real Estate Lease of March 1, February 29,
22,965.71 1,474.48 Agreed 1,474.48 No
Industries Co., Development Co., houses 2021 2024
Ltd. Ltd.
Shanghai
Zhenhua Heavy Shanghai Changyi Lease of August 15, August 14,
1,405.40 859.13 Agreed 859.13 No
Industries Co., Industrial Co., Ltd houses 2021 2031
Ltd.
Leasing explanation
None
49
2 Guarantee
√Applicable □Not applicable
Unit: Yuan Currency: CNY
External guarantee of the Company (excluding guarantee to the subsidiaries)
Relation Guarantee
Date of Fulfillment
between the Starting Due Amount of Counter by the
Guaranteed Guaranteed guarantee Type of Collateral of the Overdue
Guarantor guarantor date of date of overdue guarantee related Relationship
party amount (signing date guarantee (if any) guarantee or not
and the listed guarantee guarantee guarantee or not party or
of agreement) or not
company not
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
0
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 -774,009,980
Total balance of guarantee to the subsidiaries at the end of the reporting period (B) 0
Total amount of guarantee of the Company (including guarantee to the subsidiaries)
Total amount of guarantee (A+B) 0
Proportion of total amount of guarantee in the net assets of the Company (%) 0
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 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)
Explanation for the joint and several repayment liabilities for the undue guarantee
The “Proposal for Providing Financing Guarantee to the Subsidiary Shanghai Zhenhua Port Machinery (Hong
Kong) Co., Ltd.” was approved upon deliberation by the Company at the 1st provisional general meeting for 2008,
Description of guarantee which agreed to provide the financial support to the subsidiary in Hong Kong and provided the guarantee with the
upper limit of USD 500 million for the loan it applied for through the bank. As of June 30, 2022, the loan guaranteed
by the Company for its subsidiary in Hong Kong was fully repaid.
3 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
Other information
□Applicable √Not applicable
(3) Provision for impairment of consigned loans
□Applicable √Not applicable
3.Other information
□Applicable √Not applicable
50
2022
4 Other material contracts
√Applicable □Not applicable
The Company and Yantian East International Container Terminals Co., Ltd. reached a consensus on the procurement
of double-trolley quayside container cranes and related matters for Phase I project of the Container Terminal Project in
East Operation Section of Yantian Port Area, Shenzhen Port, and signed a contract agreement for a total project amount of
RMB1,293 million. See Extraordinary Announcement No. 2022-032 for details.
XIV. Other significant events for investors’ judgment of value and investment decision-making
□Applicable √Not applicable
51
Section VII Changes in Shares and Shareholders' Situation
I. Changes in share capital
1 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
2 Changes in shares with restrictive conditions for sales
□Applicable √Not applicable
II. Issuance and listing of securities
1 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
2 Changes in total shares and the shareholder structure of the Company, as well as in asset and liability
structures
□Applicable √Not applicable
3 Existing internal employee ownership
□Applicable √Not applicable
III. Shareholders and actual controller
1 Total number of shareholders
Total of ordinary shareholders by the end of the reporting period 205,532
Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report 221,862
52
2022
2 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
Shares held by top 10 shareholders
Number of Number of Shares in pledge,
Changes in marked or frozen
shares held at shares with Nature of
Name of shareholder(in full) the reporting Ratio (%)
the end of the trading limited Share Number shareholder
period
period conditions held status of shares
Overseas
CCCG (HK) Holding Limited 0 916,755,840 17.401 0 NA 0
legal person
China Communications Construction State-owned
0 855,542,044 16.239 0 NA 0
Company Ltd. legal person
China Communications Construction Group State-owned
0 663,223,375 12.589 0 NA 0
Co., Ltd. legal person
CITIC Bank Co., Ltd. - BOCOM Schroder
New Life Flexible Allocation Hybrid Securities 34,542,585 34,542,585 0.66 Unknown Unknown
Investment Fund
Dacheng Fund- Agricultural Bank of China
- Dacheng China Securities Financial Asset 0 19,855,920 0.38 Unknown Unknown
Management Plan
GF Fund- Agricultural Bank of China -
GF China Securities Financial Assets 0 19,855,920 0.38 Unknown Unknown
Management Plan
China Southern Asset Management-
Agricultural Bank of China - China Southern
0 19,855,920 0.38 Unknown Unknown
Asset Management China Securities Financial
Asset Management Plan
E FUND Management- Agricultural Bank
of China - E FUND Management China -28,100 19,827,820 0.38 Unknown Unknown
Securities Financial Assets Management Plan
Lombarda China Fund- Agricultural Bank of
China - Lombarda China Fund China Securities -29,000 19,826,920 0.38 Unknown Unknown
Financial Assets Management Plan
Yinhua Fund- Agricultural Bank of China
- Yinhua China Securities Financial Asset -221,188 19,634,732 0.37 Unknown Unknown
Management Plan
Shareholdings of top 10 shareholders without trading limited conditions
Number of non- Type and number of shares
Name of shareholder restrictive circulation
shares held Type Quantity
Foreign
CCCG (HK) Holding Limited 916,755,840 shares listed
domestically
RMB ordinary
China Communications Construction Company Ltd. 855,542,044
shares
RMB ordinary
China Communications Construction Group Co., Ltd. 663,223,375
shares
CITIC Bank Co., Ltd. - BOCOM Schroder New Life Flexible Allocation RMB ordinary
34,542,585
Hybrid Securities Investment Fund shares
Dacheng Fund- Agricultural Bank of China - Dacheng China Securities RMB ordinary
19,855,920
Financial Asset Management Plan shares
GF Fund- Agricultural Bank of China - GF China Securities Financial RMB ordinary
19,855,920
Assets Management Plan shares
China Southern Asset Management- Agricultural Bank of China -
RMB ordinary
China Southern Asset Management China Securities Financial Asset 19,855,920
shares
Management Plan
53
Shareholdings of top 10 shareholders without trading limited conditions
Number of non- Type and number of shares
Name of shareholder restrictive circulation
shares held Type Quantity
E FUND Management- Agricultural Bank of China - E FUND Management RMB ordinary
19,827,820
China Securities Financial Assets Management Plan shares
Lombarda China Fund- Agricultural Bank of China - Lombarda China RMB ordinary
19,826,920
Fund China Securities Financial Assets Management Plan shares
Yinhua Fund- Agricultural Bank of China - Yinhua China Securities RMB ordinary
19,634,732
Financial Asset Management Plan shares
Among the above top 10 shareholders, CCCG (HK) Holding
Limited, China Communications Construction Group Co., Ltd. and
China Communications Construction Company Ltd. are related
Notes to the related relation or consistent actions of the above-mentioned companies. It was unknown to the Company whether there was
shareholders 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
Shareholdings of the top ten restricted shareholders and the restrictions
□Applicable √Not applicable
3 Indicate whether any strategic investor or general corporate has become a top-10 shareholder due to placement
of new shares
□Applicable √Not applicable
IV. Controlling shareholder and actual controller
1 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
Main business
of engineering, feasibility study, survey, design, construction, 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 59.63% of the stock equity of CCCC (601800.SH) 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
Interests held in other domestically Estate Co., Ltd. (000726.SZ) and it is the controlling shareholder. CCCG and its controlling
and overseas listed companies in the subsidiaries totally hold 28.00% of the stock equity of Greentown Holding Co., Ltd. (03900.
reporting period HK) and are the controlling shareholders. China Urban and Rural Holding Group Co., Ltd., a
wholly-owned subsidiary of CCCG, and its concerted actor CCCC Fund jointly hold 33.40%
of the stock equity of Beijing Originwater Technology Co., Ltd. (300070. SZ), and they are
the controlling shareholders.
Notes to other circumstances
54
2022
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
5. Block diagram of the ownership and control relationship between the Company and the controlling
shareholder
√Applicable □Not applicable
CCCG
Shareholding ratio100% Shareholding ratio 59.63%
CCCG HK CCCC
Shareholding ratio 17.4012% Shareholding ratio 12.5888% Shareholding ratio 16.2393%
Shanghai Zhenhua Heavy Industries, Co., Ltd.
2 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
5. Block diagram of ownership and control relationship between the Company and the actual controller
√Applicable □Not applicable
State-owned Assets Supervision and
Administration Commission of the State Council
Shareholding ratio 100%
CCCG
Shareholding ratio 100% Shareholding ratio 59.63%
CCCG HK CCCC
Shareholding ratio 17.4012% Shareholding ratio 12.5888% Shareholding ratio 16.2393%
Shanghai Zhenhua Heavy Industries, Co., Ltd.
6. Indicate whether the actual controller controls the Company via trust or other ways of assets management
□Applicable √Not applicable
55
3 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
VI.Other corporate shareholders holding more than 10%
□Applicable √Not applicable
Unit:’0,000 Yuan Currency: CNY
Name of
Company principal or Date of Registered Main business or
corporate Organization code
legal representative establishment capital management activities
shareholder
China General contracting of
Communications construction projects
Wang Tongzhou Oct. 8, 2006 91110000710934369E 1,616,571.1425
Construction for ports, waterways,
Company Ltd. highways, bridges, etc.
Investment management,
CCCG (HK)
Peng Guangsheng Sept. 5, 2017 / HKD 1,000 project investment,
Holding Limited
project financing
CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of China
Description
Communications 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
56
2022
Section IX Bonds
I. Enterprise bonds, corporate bonds and debt financing instruments of non-financial enterprises
√Applicable □Not applicable
1 Enterprise bonds
□Applicable √Not applicable
2 Corporate bonds
□Applicable √Not applicable
1.Basic information of corporate bonds
Unit: Yuan Currency: CNY
Investor Risk of
Issue Value Maturity Outstanding Interest Payment Trading eligibility Trading termination
Name of bond Abbreviation Code
date date date balance rate (%) method venue arrangements mechanism of listing
(if any) and trading
Shanghai Zhenhua
Heavy Industries Principal
Sept. Sept. Shanghai
Co., Ltd. 2022 182728. Dec.19, and interest Private
G Zhenhua D1 16, 20, 0.00 1.95 Stock N/A
private placement of SH 2022 repayment placement
2022 2022 Exchange
corporate bonds (Blue on maturity
Bond) (series 1)
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
Name of bond Statement of interest payment status
Shanghai Zhenhua Heavy Industries Co., Ltd. 2022 private
Normal payment at maturity.
placement of corporate bonds (Blue Bond) (series 1)
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
Agency name Office address by the Person to contact Contact number
Accountants
Huatai United Securities 20F, Tower E, Poly Plaza, 18 Dongfang
Wang Zhe 18017726598
Co., Ltd. Road, Pudong, Shanghai
17/F, PICC Building, No.2
China Lianhe Credit Yang Heng, Wang
Jianguomenwai Street, Chaoyang - 010-85679696
Rating Co. Ltd. Xinglong
District, Beijing
50/F, Shanghai World Financial Center,
Ernst & Young Hua Ming
No. 100 Century Ave., Pudong New - Gao Chong 021-22288888
LLP
Area, Shanghai
16/F, East Tower, Raffles City the
Shanghai Landing Law Liu Zhaofu, Kong
Bund, No.1089 DongDaMing Road, - 021-66529952
Offices Lingsen
Hongkou District, Shanghai
57
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 corporate bonds
□Applicable √Not applicable
3 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
Issue Value Maturity Outstanding Interest Payment Trading eligibility Trading termination
Name of bond Abbreviation Code
date date date balance rate (%) method venue arrangements mechanism of listing
(if any) and trading
Shanghai Zhenhua
22 ZPMC
Heavy Industries Centralized
MTN001 Aug. Aug.
Co., Ltd. 2022 Dec. 31, Aug.24 Interbank book-entry and
(sci-tech 102281893 22, 24, 500,000,000 3.22 N/A
medium-term notes 2099 every year market centralized
innovation 2022 2022
series I (sci-tech placement
note)
innovation note)
Shanghai Zhenhua Interest
Centralized
Heavy Industries Dec. Dec. paid on
20 ZPMC Dec. 28, Interbank book-entry and
Co., Ltd. 2020 102002348 24, 28, 0 5.1 December N/A
MTN002 2022 market centralized
medium-term notes 2020 2020 28 every
placement
series 2 year
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
Name of bond Statement of interest payment status
Shanghai Zhenhua Heavy Industries Co., Ltd. 2020 medium-term notes series 2 Normal payment at maturity.
58
2022
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
No.188 Yincheng Middle
Bank of Communications Co., Ltd. - Xiong Han 021-38579212
Road, Shanghai
Industrial Bank Tower,
398 Middle Jiangbin Blvd., Lin Chen, Cheng 010-89926551,
Industrial Bank Co., Ltd. -
Taijiang District, Fuzhou, Qiuyun 021-62677777
Fujian
17/F, PICC Building, No.2
Yang Heng, Wang
China Lianhe Credit Rating Co. Ltd. Jianguomenwai Street, - 010-85679696
Xinglong
Chaoyang District, Beijing
50/F, Shanghai World
Financial Center, No. 100
Ernst & Young Hua Ming LLP - Gao Chong 021-22288888
Century Ave., Pudong New
Area, Shanghai
47/F, Maxdo Center, No. 8
Shanghai Duan & Duan Law Firm - Wang Xiaobo 021-32230722
Xingyi Road, 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
Unit: Yuan Currency: CNY
Consistent
Operation with the
Rectification
of special purpose, use
of non-
Total amount of Unused account plan, and other
Name of bond Amount used compliant
raised funds amount for fund agreements
use of raised
raising (if promised in
funds (if any)
any) the prospectus
or not
Shanghai Zhenhua Heavy
Industries Co., Ltd. 2022
500,000,000.00 500,000,000.00 0 Yes
medium-term notes series
I (sci-tech innovation note)
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
59
7.Other information on debt financing instruments of non-financial enterprises
□Applicable √Not applicable
4 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
5 Overdue interest-bearing debts other than bonds at the end of the reporting period
□Applicable √Not applicable
6 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
7 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
Year-on-year
Main indexes 2022 2021 Reason of change
change (%)
Net profit attributable to shareholders of
the listed company after deducting the non- 414,835,324 -440,186,675 N/A
recurring profits and losses
Current ratio 1.07 1.24 -13.71
Quick ratio 0.33 0.45 -26.67
Asset-liability ratio (%) 76.83 77.47 -0.64
Interest-bearing debt ratio (%) 52 57 -5
Interest coverage ratio 1.56 1.45 7.59
Cash interest coverage ratio 2.92 1.81 61.33
EBITDA interest coverage ratio 2.74 2.56 7.03
Loan repayment ratio (%) 100 100 0
Interest coverage ratio (%) 100 100 0
II. Information about convertible corporate bonds
□Applicable √Not applicable
60
2022
Section X Financial Report
I. Auditors’ Report
Ernst & Young (2023) SZ No.61249778_B01
√Applicable □Not applicable Shanghai Zhenhua Heavy Industries Co., Ltd.
Auditors' Report
All shareholders of Shanghai Zhenhua Heavy Industries Co., Ltd.:
1 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,
2022, 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, 2022 and the consolidated operating results and cash flows and the
Company’s operating results and cash flows for the year then ended.
2 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.
3 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.
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
Our procedure mainly included knowing and testing the validity
machine, offshore heavy-duty machine and large-sized steel structure. Its inventories
of the control related to the provision of inventory depreciation
mainly include engineering raw materials, outsourcing parts and components, products
reserves and the method of calculating the net realizable
in the process and inventory goods. Since the production cycle of the products is
value of the Group. We also implemented the related auditing
relatively long, the net realizable value of the related inventory may fluctuate with
procedures over the inventory such as supervision of inventory
the change in the market demand, resulting in the inventory depreciation risks. The
to verify whether the management had marked the inventory
management sets aside the inventory depreciation reserves according to the balance of
with slow turnover and defectives and taken into full account
the inventory cost and the net realizable value. The net realizable value is determined
in provision of inventory depreciation reserves. In addition,
as per the estimated selling price of the inventory minus the cost, the estimated selling
we obtained the computation sheet of provision of inventory
expenses and the related taxes that may occur in the completion on the assumption
depreciation reserves from the management, rechecked the
that the management layer adopts a certain estimate and hypothesis in determining the
calculation method and result. As to the key elements taken
net realizable value. In case of difference between the actual figure and the originally
into consideration by the management in calculating the net
estimated figure, the related balance will affect the book value of the inventory and the
realizable value, including the estimated selling price and the
depreciation loss in the estimated fluctuation.
cost that may occur till completion, we evaluated the hypothesis
As of December 31, 2022, in the consolidated financial statements, the balance of
and the estimates through analyzing the related historical
inventories was RMB 22.22 billion and the reserve for inventory depreciation was RMB
data and comparing the after-date data of Shanghai Zhenhua
0.7 billion; in the financial statements of the Company, the balance of inventories was
Heavy Industries Co., Ltd. We also rechecked the disclosure of
RMB 19.27 billion and the reserve for inventory depreciation was RMB 0.74 billion.
inventory depreciation reserves in financial statements.
The accounting policy and other disclosures regarding the inventory are stated in Note
V (15), Note V (43) and Note VII (9) of the financial statement.
61
Key Audit Matters: How our audit addressed the key audit matter:
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 Our procedure mainly included the evaluation of the accounting
technical parameters, the implementation of the contract may be affected by the estimate relating to the depreciation reserves, such as the
periodicity of the economic environment. The accounts receivable has certain risk in the financial status and credit rating of the counterpart; checked the
recovery in case of any dispute in contract or the industry is in recession. The provisions account age of accounts receivable and historical repayment
for bad debts of accounts receivable are recognized on the basis of estimated credit record and evaluated whether the financial problems of the
losses, involving major judgment and estimates. The management of analyzed the counter party had effects on the recovery of the accounts
financial position of counter parties, guarantee acquired for accounts receivable, receivable; for the accounts receivable evaluated based on
historical repayment records of accounts receivable, as well as the credit rating and the portfolio, we rechecked the management's setting of credit
future economic situations of counter parties for evaluating the credit risk of accounts risk features portfolio, checked the key information such as
receivable. account age and credit record of each portfolio by sampling,
As of December 31, 2022, in the consolidated financial statements, the balance of and rechecked the basis of management's evaluation of credit
accounts receivable was RMB 9.51 billion and the provision for bad debts of accounts risk and expected credit loss amount based on the credit risk
receivable was RMB 2.32 billion; in the financial statements of the Company, the features portfolio, including testing historical default data and
balance of accounts receivable was RMB 20.12 billion and the provision for bad debts of checking the actual credit loss in the current year; rechecked
accounts receivable was RMB 2.11 billion. the disclosure of bad debt provision for accounts receivable in
The accounting policy and other disclosures regarding the provision for bad debts of financial statements.
accounts receivable are stated in Note V (15), Note V (43), Note VII (5) and Note XVII (1)
of the financial statements.
3. Revenue recognition
Our procedure mainly included evaluating and testing the
management's internal control related to revenue recognition.
Selected the sales contract with significant amount, checked
Most of the revenue of Shanghai Zhenhua Heavy Industries Co., Ltd. comes from the the important contract terms related to revenue recognition
one of the construction contracts on the large-sized port equipment, heavy equipment, according to the five step requirements of the new revenue
steel structure and construction projects customized by the customer. standard, and evaluated the management’s accounting judgment
Since January 1, 2020, the new revenue standard has been applied, and the and estimate on performance obligations, revenue recognition
management has read and analyzed the contracts of various revenue types according amount (including variable consideration) and the recognition
to the requirements of five step method. The performance obligations included in the at a certain time point or within a period of time. Through
manufacturing contract on most large-sized port equipment, heavy equipment and some selecting the samples, we verified whether the contract revenue
steel structure products did not meet the conditions of performance obligations within recognized in the year conformed to the revenue recognition
a certain period of time, therefore, based on comprehensive consideration of various conditions; implemented the cutoff check procedure to validate
factors, the revenue was recognized at the time of control transfer of relevant products. the revenue was confirmed in the proper accounting period. For
In 2022, in the consolidated financial statements, the operating revenue was RMB 30.19 the revenue recognized in a certain period of time, we evaluated
billion; in the financial statements of the Company, the operating revenue was RMB the judgment and estimate of the total contract cost and total
26.17 billion. processing amount made by the management, and made
The accounting policy and other disclosures regarding the operating revenue are stated sampling to calculate and check the income determined by
in Note V (24), Note V (33), Note VII (47) and Note XVII (4) of the financial statements. the occurred contract cost and the expected total contract cost
again; implemented the analysis procedure against the changes
in revenue and gross profit of various businesses; rechecked the
disclosure of revenue recognition in financial statements.
4 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.
5 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.
62
2022
6 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.
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.
Certified Public Accountant of China:
Ernst & Young Hua Ming LLP (Engagement Partner)
Certified Public Accountant of China:
Beijing, China March 30, 2023
63
II. Financial Statements
Consolidated Balance Sheet
As at December 31, 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31, 2022 As at December 31, 2021
Current assets:
Monetary funds VII (1) 2,397,047,713 4,571,837,584
Settlement provisions
Lending funds
Held-for-trading financial assets VII (2) 877,483,342 1,153,533,922
Derivative financial assets
Notes receivable VII (4) 56,114,657 3,979,800
Accounts receivable VII (5) 7,193,649,855 6,448,850,756
Receivables financing VII (6) 439,912,428 245,408,260
Advances to suppliers VII (7) 951,212,422 1,159,427,850
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables VII (8) 995,545,297 940,522,896
Including: Interest receivable
Dividend receivable 8,000,000
Financial assets purchased under agreements to resell
Inventories VII (9) 21,513,379,348 22,073,774,730
Contract assets VII (10) 3,243,073,136 1,971,455,850
Assets held for sale VII (11) 15,167,288
Non-current assets due within one year VII (12) 900,213,411 1,437,034,591
Other current assets VII (13) 279,067,341 359,805,348
Total current assets 38,846,698,950 40,380,798,875
Non-current assets:
Disbursement of loans and advances
Debt investment
Other debt investments
Long-term receivables VII (16) 2,402,265,565 2,674,407,383
Long-term equity investments VII (17) 2,002,879,925 1,841,721,259
Other equity instrument investment VII (18) 73,475,619 66,280,045
Other non-current financial assets
Investment properties VII (20) 437,494,135 461,077,417
Fixed assets VII (21) 20,663,113,030 20,018,544,737
Construction in progress VII (22) 4,838,814,052 4,691,782,000
Productive biological assets
Oil and gas assets
Right-of-use assets VII (25) 11,931,451 7,652,250
Intangible assets VII (26) 3,553,837,771 3,400,427,256
Development expenditures
Goodwill VII (28) 268,245,693 258,638,429
Long-term deferred expenses VII (29) 409,870 103,664
64
2022
Consolidated Balance Sheet(Continued)
As at December 31, 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31, 2022 As at December 31, 2021
Deferred income tax assets VII (30) 867,941,451 773,705,674
Other non-current assets VII (31) 4,246,061,211 3,756,942,210
Total non-current assets 39,366,469,773 37,951,282,324
Total assets 78,213,168,723 78,332,081,199
Current liabilities:
Short-term borrowings VII (32) 1,793,682,952 5,977,692,367
Borrowings from the Central Bank
Borrowing funds
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable VII (35) 5,401,258,897 4,160,666,800
Accounts payable VII (36) 7,255,123,334 6,966,472,639
Advances from customers
Contract liabilities VII (38) 13,348,150,197 12,386,142,828
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable VII (39) 38,074,154 35,641,840
Tax payable VII (40) 238,103,875 167,827,388
Other payables VII (41) 1,314,688,315 409,527,645
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) 6,961,445,218 2,523,964,018
Other current liabilities VII (44)
Total current liabilities 36,350,526,942 32,627,935,525
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings VII (45) 21,019,572,646 24,943,760,955
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities VII (47) 7,676,707 736,624
Long-term payables VII (48) 1,931,340,734 2,163,591,149
Long-term payroll payable
Estimated liabilities VII (50) 168,241,316 188,005,742
Deferred income VII (51) 332,419,380 388,823,964
Deferred income tax liabilities VII (30) 99,240,972 76,876,339
65
Consolidated Balance Sheet(Continued)
As at December 31, 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31, 2022 As at December 31, 2021
Other non-current liabilities VII (52) 181,805,207 292,297,881
Total non-current liabilities 23,740,296,962 28,054,092,654
Total liabilities 60,090,823,904 60,682,028,179
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) 4,842,515,715 4,842,515,715
Less: treasury stock
Other comprehensive income VII (57) 24,865,987 -69,355,058
Special reserves VII (58) 2,945,560 1,934,676
Surplus reserves VII (59) 1,703,918,676 1,679,258,496
General risk preparation
Undistributed profits VII (60) 2,825,870,678 2,767,511,301
Total owners' equities attributable to the owners of parent
15,168,470,117 14,990,218,631
company
Minority equity 2,953,874,702 2,659,834,389
Total owners’ equity (or shareholders' equity) 18,122,344,819 17,650,053,020
Total liabilities and owners’ equity (or shareholders' equity) 78,213,168,723 78,332,081,199
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
66
2022
Balance Sheet of the Parent Company
As at December 31, 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31, 2022 As at December 31, 2021
Current assets:
Monetary funds 722,079,840 3,701,103,539
Held-for-trading financial assets 239,784,587 493,120,301
Derivative financial assets
Notes receivable 56,114,657 3,979,800
Accounts receivable XVII (1) 18,014,241,050 15,045,002,044
Receivables financing 297,356,630 237,823,940
Advances to suppliers 6,860,717,286 4,674,664,134
Other receivables XVII (2) 1,680,563,614 3,836,840,864
Including: Interest receivable
Dividend receivable 315,789,096
Inventories 18,530,057,990 18,771,744,852
Contract assets 1,867,489,992 1,458,474,386
Assets held for sale
Non-current assets due within one year
Other current assets 175,036,344 127,397,199
Total current assets 48,443,441,990 48,350,151,059
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments XVII (3) 9,389,579,244 9,046,140,403
Other equity instrument investment 73,475,619 66,280,045
Other non-current financial assets
Investment properties 437,494,135 461,077,417
Fixed assets 3,865,130,627 4,009,766,651
Construction in progress 647,322,776 640,751,191
Productive biological assets
Oil and gas assets
Right-of-use assets 44,765 104,453
Intangible assets 1,432,796,201 1,464,690,392
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 833,341,377 740,925,972
Other non-current assets 530,196,047 818,529,549
Total non-current assets 17,209,380,791 17,248,266,073
Total assets 65,652,822,781 65,598,417,132
Current liabilities:
Short-term borrowings 1,269,182,952 4,075,446,557
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 5,252,294,408 4,260,082,858
67
Balance Sheet of the Parent Company(Continued)
As at December 31, 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31, 2022 As at December 31, 2021
Accounts payable 3,610,603,937 4,948,441,932
Advances from customers
Contract liabilities 12,525,059,840 10,907,361,553
Payroll payable 29,189,818 29,427,722
Tax payable 82,609,138 29,637,921
Other payables 2,716,399,244 1,305,581,786
Including: Interest payable
Dividends payable 6,593 6,593
Liabilities held for sale
Non-current liabilities due within one year 6,152,492,930 1,844,958,736
Other current liabilities
Total current liabilities 31,637,832,267 27,400,939,065
Non-current liabilities:
Long-term borrowings 18,447,465,656 22,550,175,571
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities 6,220
Long-term payables
Long-term payroll payable
Estimated liabilities 154,863,743 176,577,960
Deferred income 257,656,046 305,215,630
Deferred income tax liabilities
Other non-current liabilities 2,321,173
Total non-current liabilities 18,862,306,618 23,031,975,381
Total liabilities 50,500,138,885 50,432,914,446
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 4,914,468,683 4,914,468,683
Less: treasury stock
Other comprehensive income 20,882,527 -8,614,560
Special reserves
Surplus reserves 1,703,410,403 1,678,750,223
Undistributed profits 2,745,568,782 2,812,544,839
Total owners’ equity (or shareholders' equity) 15,152,683,896 15,165,502,686
Total liabilities and owners’ equity (or shareholders' equity) 65,652,822,781 65,598,417,132
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
68
2022
Consolidated Income Statement
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note 2022 2021
I. Total operating revenue 30,191,792,987 25,977,976,968
Including: Operating revenue VII (61) 30,191,792,987 25,977,976,968
Interest income
Premiums earned
Fee and commission income
II. Total operating cost 29,226,104,243 26,137,975,161
Including: operating costs VII (61) 26,145,431,986 23,498,271,033
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) 174,759,457 108,179,417
Selling and distribution expenses VII (63) 176,805,664 115,347,438
General and administrative expenses VII (64) 835,690,168 869,195,529
Research and development expenditures VII (65) 1,118,337,091 883,154,222
Financial expenses VII (66) 775,079,877 663,827,522
Including: interest expenses 1,038,321,065 1,094,451,482
Interest income 413,595,714 356,324,952
Plus: other incomes VII (67) 104,014,204 75,986,080
Income from investment (loss expressed with “-”) VII (68) 204,359,358 1,286,473,690
Including: Income from investment of joint venture and cooperative enterprise 170,402,945 237,773,613
Income from derecognition of financial assets measured at amortized
-20,135,378
cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”) VII (70) -276,050,580 -235,912,837
Credit impairment losses (loss expressed with “-”) VII (71) -346,156,434 -155,561,886
Assets impairment losses (loss expressed with “-”) VII (72) -92,510,638 -294,180,123
Income from disposal of assets (loss expressed with “-”) VII (73) 66,186,622 71,278,254
III. Operating profits (loss expressed with “-”) 625,531,276 588,084,985
Plus: non-operating income VII (74) 32,139,607 26,667,187
Less: non-operating expenditure VII (75) 2,436,095 9,411,053
IV. Total profits (total loss expressed with “-”) 655,234,788 605,341,119
Less: income tax expenses VII (76) 57,672,440 76,995,542
V. Net profits (net loss expressed with “-”) 597,562,348 528,345,577
(I) Classified by business continuity
1. Net profits from ongoing operation (net loss expressed with “-”) 597,562,348 528,345,577
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 “-”) 371,937,232 439,839,245
2. Minority interests (net loss expressed with “-”) 225,625,116 88,506,332
69
Consolidated Income Statement(Continued)
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note 2022 2021
VI. Net of tax of other comprehensive income 122,166,570 -10,934,767
(I) Net amount of after-tax other comprehensive income attributable to the owners of the
94,221,045 -6,427,660
parent company
1. Other comprehensive income that can't be reclassified into profit and loss 6,116,237 4,058,150
(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 6,116,237 4,058,150
(4) Fair value change of enterprise credit risks
2. Other comprehensive income that will be reclassified into profit and loss 88,104,808 -10,485,810
(1) Other comprehensive income that will be reclassified into profit and loss in the invested
20,743,893 10,458,625
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 67,360,915 -20,944,435
(7) Others
(II) Net of tax of other comprehensive income attributable to the minority shareholders 27,945,525 -4,507,107
VII. Total comprehensive income 719,728,918 517,410,810
(I) Total comprehensive income belonging to parent company 466,158,277 433,411,585
(II) Total comprehensive income belonging to minority shareholders 253,570,641 83,999,225
VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share) 0.07 0.08
(II) Diluted earnings per share (Yuan/share) 0.07 0.08
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 15,709,642.
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
70
2022
Income Statement of Parent Company
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note 2022 2021
I. Operating revenue XVII (4) 26,167,200,140 22,989,491,248
Less: operating costs XVII (4) 23,715,294,401 21,313,600,636
Taxes and surcharges 99,236,620 46,991,429
Selling and distribution expenses 155,895,902 98,488,160
General and administrative expenses 440,171,981 468,393,559
Research and development expenditures 813,395,559 734,454,314
Financial expenses 884,406,720 854,806,739
Including: interest expenses 799,727,505 874,447,716
Interest income 41,733,102 19,153,277
Plus: other incomes 75,037,357 41,374,241
Income from investment (loss expressed with “-”) XVII (5) 604,019,489 1,286,146,576
Including: Income from investment of joint venture and cooperative enterprise 170,768,840 232,454,488
Income from derecognition of financial assets measured at amortized cost -20,135,378
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”) -253,335,714 -201,856,923
Credit impairment losses (loss expressed with “-”) -274,770,970 -85,087,358
Assets impairment losses (loss expressed with “-”) -71,850,880 -298,095,570
Income from disposal of assets (loss expressed with “-”) 4,769,913 40,410,977
II. Operating profits (loss expressed with “-”) 142,668,152 255,648,354
Plus: non-operating income 12,598,476 8,526,790
Less: non-operating expenditure 1,097,149 5,856,604
III. Total profits (total loss expressed with “-”) 154,169,479 258,318,540
Less: income tax expenses -92,432,319 -20,080,948
IV. Net profits (loss expressed with “-”) 246,601,798 278,399,488
(I) Net profits from ongoing operation (net loss expressed with “-”) 246,601,798 278,399,488
(II) Net profits from discontinuing operation (net loss expressed with “-”)
V. Net of tax of other comprehensive income 29,497,087 13,884,144
(I) Other comprehensive income that can't be reclassified into profit and loss 6,116,237 4,058,150
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 6,116,237 4,058,150
4. Fair value change of enterprise credit risks
(II) Other comprehensive income that will be reclassified into profit and loss 23,380,850 9,825,994
1. Other comprehensive income that will be reclassified into profit and loss in the invested
20,743,893 10,458,625
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 2,636,957 -632,631
7. Others
VI. Total comprehensive income 276,098,885 292,283,632
VII. Earnings per share:
(I) Basic earnings per share (Yuan/share)
(II) Diluted earnings per share (Yuan/share)
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
71
Consolidated Statement of Cash Flows
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note 2022 2021
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 25,267,511,264 28,080,136,462
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 855,636,866 727,776,774
Other cash received related to operating activities 244,003,096 308,351,304
Subtotal cash inflows from operating activities 26,367,151,226 29,116,264,540
Cash paid for goods purchased and services received 19,831,977,453 23,592,910,907
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 2,574,314,378 2,353,107,660
Taxes and fees paid 594,993,030 489,545,705
Other cash paid related to operating activities 797,302,342 561,060,750
Subtotal cash outflows from operating activities 23,798,587,203 26,996,625,022
Net cash flows from operating activities 2,568,564,023 2,119,639,518
II. Cash flows from investment activities:
Cash from investment withdrawal 17,165,758 2,162,928,251
Cash from investment income 159,044,219 1,012,740,327
Net cash received from disposal of fixed assets, intangible assets and other long-term assets 19,391,609 161,312,919
Net cash from disposal of subsidiaries and other business units
Other cash received related to investment activities 209,457,444 425,449,726
Subtotal cash inflows from investment activities 405,059,030 3,762,431,223
Cash paid for purchase of fixed assets, intangible assets and other long-term assets 488,778,059 1,265,404,618
Cash paid for investments 6,000,000
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 488,778,059 1,271,404,618
Net cash flow from investment activities -83,719,029 2,491,026,605
III. Cash flows from financing activities:
Cash from absorption of investments 98,327,900 144,759,800
72
2022
Consolidated Statement of Cash Flows(Continued)
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note 2022 2021
Including: cash received from subsidies’ absorption of minority shareholders’ investment 98,327,900 144,759,800
Cash received from borrowings 38,626,275,738 35,211,869,191
Other cash received related to financing activities 618,107,748 1,309,979,506
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 40,342,711,386 36,666,608,497
Cash repayments of amounts borrowed 42,832,240,800 37,441,150,454
Cash paid for distribution of dividends, profits or interest expenses 1,395,285,252 1,185,819,717
Including: dividends and profits paid by subsidiaries to minority shareholders 58,000,000 62,338,380
Other cash paid related to financing activities 838,344,871 1,018,806,687
Subtotal cash outflows from financing activities 45,065,870,923 39,645,776,858
Net cash flows from financing activities -4,723,159,537 -2,979,168,361
IV. Impact of exchange rate movements on cash and cash equivalents 163,578,103 -79,402,225
V. Net increase of cash and cash equivalents -2,074,736,440 1,552,095,537
Plus: beginning balance of cash and cash equivalents 4,449,837,877 2,897,742,340
VI. Ending balance of cash and cash equivalents 2,375,101,437 4,449,837,877
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
73
Statement of Cash Flows of the Parent Company
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
Item Note 2022 2021
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 22,387,866,565 20,415,901,796
Refund of tax and levies 635,424,765 717,350,885
Other cash received related to operating activities 225,294,772 254,588,745
Subtotal cash inflows from operating activities 23,248,586,102 21,387,841,426
Cash paid for goods purchased and services received 21,040,995,998 16,874,301,352
Cash paid to and for employees 1,321,000,912 1,260,190,498
Taxes and fees paid 123,242,978 90,995,366
Other cash paid related to operating activities 381,273,867 525,166,211
Subtotal cash outflows from operating activities 22,866,513,755 18,750,653,427
Net cash flows from operating activities 382,072,347 2,637,187,999
II. Cash flows from investment activities:
Cash from investment withdrawal 17,165,758 2,162,928,251
Cash from investment income 236,682,551 1,017,732,338
Net cash received from disposal of fixed assets, intangible assets and other long-term assets 18,283,472 40,410,977
Net cash from disposal of subsidiaries and other business units
Other cash received related to investment activities
Subtotal cash inflows from investment activities 272,131,781 3,221,071,566
Cash paid for purchase of fixed assets, intangible assets and other long-term assets 286,375,311 311,389,255
Cash paid for investments 208,679,973 1,532,363,100
Net cash paid for obtaining subsidiaries and other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 495,055,284 1,843,752,355
Net cash flow from investment activities -222,923,503 1,377,319,211
III. Cash flows from financing activities:
Cash from absorption of investments
Cash received from borrowings 36,266,553,328 32,323,238,811
Cash received from issuance of other equity instruments 500,000,000
Cash received from issuance of bonds 500,000,000
Other cash received related to financing activities 611,100,376
Subtotal cash inflows from financing activities 37,877,653,704 32,323,238,811
Cash repayments of amounts borrowed 39,402,630,672 33,578,947,138
Cash paid for distribution of dividends, profits or interest expenses 1,096,677,413 976,207,930
Other cash paid related to financing activities 500,006,220 55,135
Subtotal cash outflows from financing activities 40,999,314,305 34,555,210,203
Net cash flows from financing activities -3,121,660,601 -2,231,971,392
IV. Impact of exchange rate movements on cash and cash equivalents 75,244,800 -42,758,085
V. Net increase of cash and cash equivalents -2,887,266,957 1,739,777,733
Plus: beginning balance of cash and cash equivalents 3,594,644,403 1,854,866,670
VI. Ending balance of cash and cash equivalents 707,377,446 3,594,644,403
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
74
Consolidated Statement of Changes in Owners’ Equity
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
2022
Equity attributable to the owners of the parent company
Item Other equity instruments Minority Total owners’
Paid-in capital Other
Capital Less: treasury Special Surplus General risk Undistributed equity equity
(or share Preferred Perpetual comprehensive Others Sub-total
Others reserves stock reserves reserves preparation profits
capital) stock bond 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
Business combination under common control
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 (“-” for decrease) 94,221,045 1,010,884 24,660,180 58,359,377 178,251,486 294,040,313 472,291,799
(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 holders 500,000,000 500,000,000 500,000,000
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 -500,000,000
(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 0 500,000,000 0 4,842,515,715 0 24,865,987 2,945,560 1,703,918,676 0 2,825,870,678 0 15,168,470,117 2,953,874,702 18,122,344,819
75
2022
76
Consolidated Statement of Changes in Owners’ Equity(Continued)
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
2021
Equity attributable to the owners of the parent company
Item Other equity instruments Minority Total owners’
Paid-in capital Other
Capital Less: treasury Special Surplus General risk Undistributed equity equity
(or share Preferred Perpetual comprehensive Others Sub-total
Others reserves stock reserves reserves preparation profits
capital) stock bond income
I. Balance at the end of the last year 5,268,353,501 500,000,000 4,834,854,332 -62,927,398 1,936,153 1,651,418,547 2,377,187,005 14,570,822,140 2,504,416,071 17,075,238,211
Plus: changes in accounting policies
Prior period error correction
Business combination under common control
Others
II. Beginning balance in current year 5,268,353,501 500,000,000 4,834,854,332 -62,927,398 1,936,153 1,651,418,547 2,377,187,005 14,570,822,140 2,504,416,071 17,075,238,211
III. Increase/decrease in the current year (“-” for decrease) 7,661,383 -6,427,660 -1,477 27,839,949 390,324,296 419,396,491 155,418,318 574,814,809
(I) Total comprehensive income -6,427,660 439,839,245 433,411,585 83,999,225 517,410,810
(II) Owner’s invested and decreased capital 7,661,383 7,661,383 133,576,567 141,237,950
1. Common stock invested by the owners
2. Capital invested by other equity instrument holders
3. Amount of share-based payment included in the owner’s equity
4. Others
5. Disinvestment by minority shareholders of subsidiaries 144,759,800 144,759,800
6. Investments received by subsidiaries from minority shareholders 7,661,383 7,661,383 -11,183,233 -3,521,850
(III) Profit distribution 27,839,949 -49,514,949 -21,675,000 -62,338,380 -84,013,380
1. Withdrawal of surplus reserves 27,839,949 -27,839,949
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders) -62,338,380 -62,338,380
4. Others -21,675,000 -21,675,000 -21,675,000
(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 -1,477 -1,477 180,906 179,429
1. Amount withdrawn in the current year 78,010,442 78,010,442 3,867,723 81,878,165
2. Amount used in the current year 78,011,919 78,011,919 3,686,817 81,698,736
(VI) Others
IV. Balance at the end of the 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
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
Statement of Changes in Owners’ Equity of the Parent Company
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
2022
Other equity instruments Other
Item Paid-in capital (or Less: treasury Special Undistributed Total owners’
Preferred Capital reserves comprehensive Surplus reserves
share capital) Perpetual bond Others stock reserves profits equity
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 decrease) 29,497,087 24,660,180 -66,976,057 -12,818,790
(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
77
2022
78
Statement of Changes in Owners’ Equity of the Parent Company(Continued)
January to December in 2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unity: Yuan Currency: CNY
2021
Paid-in capital Other equity instruments Other
Item Capital Less: treasury Special Surplus Undistributed Total owners’
(or share comprehensive
Preferred stock Perpetual bond Others reserves stock reserves reserves profits equity
capital) income
I. Balance at the end of the last year 5,268,353,501 500,000,000 4,914,468,683 -22,498,704 1,650,910,274 2,583,660,300 14,894,894,054
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 -22,498,704 1,650,910,274 2,583,660,300 14,894,894,054
III. Increase/decrease in the current year (“-” for decrease) 13,884,144 27,839,949 228,884,539 270,608,632
(I) Total comprehensive income 13,884,144 278,399,488 292,283,632
(II) Owner’s invested and decreased capital
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
(III) Profit distribution 27,839,949 -49,514,949 -21,675,000
1. Withdrawal of surplus reserves 27,839,949 -27,839,949
2. Distribution of owners (or shareholders)
3. Others -21,675,000 -21,675,000
(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 42,890,523 42,890,523
2. Amount used in the current year 42,890,523 42,890,523
(VI) Others
IV. Balance at the end of the 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
Chairman of Person in charge of Person in charge of
the Company: accounting work: accounting agency:
2022
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, 2022, 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 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”) was 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; repair
of vessel; leasing of self-produced crane, 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 30,
2023.
83
2 Scope of consolidated financial statements
√Applicable □Not applicable
The consolidation scope of the consolidated financial statements is determined based on control. For the changes in the
current period and the main subsidiaries included in the scope of consolidation, please see Note IX (1).
IV. Basis of preparation for financial statements
1 Basis of preparation
The financial statements are prepared on the basis of the Accounting Standards for Business Enterprise– Basic
Standards issued by the Ministry of Finance and the subsequently issued and revised specific accounting principles,
guidelines, explanations and other related regulations (hereinafter collectively referred to as “Accounting Standards for
Business Enterprise”).
2 Going concern
√Applicable □Not applicable
The financial statements of the Company have been presented on a going concern basis.
While preparing the financial statements, except for some financial instruments, the valuation principle of historical
cost shall be adopted. The assets held for sale shall be presented at the lower of the book value and the net amount of the
fair value minus the selling expenses. If the assets are impaired, the provision for impairment is made in accordance with
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
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 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
84
2022
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.
The identifiable assets, liabilities and contingent liabilities obtained of the acquiree in the business combination not
under common control shall be measured at fair value on the acquisition date.
The positive balance between the sum of the fair value of the combined consideration paid (or fair value of the issued
equity securities) and the fair value of the held stock equity of the acquiree before the acquisition date and the fair value of
the identifiable net assets obtained in the combination from the acquiree is confirmed as goodwill, and shall be accounted
for subsequent measurement after subtracting the accumulated impairment losses from the cost. If the sum of the fair value
of the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stock equity of
the acquiree before the acquisition date is smaller than the fair value of the identifiable net assets of the acquiree obtained
in the combination, firstly recheck the measurement of the fair value of the identifiable assets, liabilities and contingent
liabilities obtained from the acquiree, and the fair value of the combined consideration paid (or fair value of the issued equity
securities), and the fair value of the held stock equity of the acquiree before the acquisition date, after that, if the sum the
fair value of the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stock
equity of the acquiree before the acquisition date is still smaller than the fair value of the identifiable net assets obtained in
combination from the acquiree, the balance shall be included in the current profit or loss.
6 Preparation of consolidated financial statements
√Applicable □Not applicable
The consolidation scope of consolidated financial statements is determined on the basis of control, covering the financial
statements of the Company and all the subsidiaries. A subsidiary is a subject which is controlled by the Company (including
the enterprise, the separable part of the invested entity, and the structural entity controlled by the Company).
When preparing the consolidated financial statements, the subsidiary adopts the accounting period and the accounting
policies consistent with the Company. Assets, liabilities, equity, income, expenses and cash flows arising from all transactions
between the Group’s internal companies are fully offset at the time of combination.
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
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.
The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until the
loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as a
transaction dealing with the equity investment of the subsidiary and losing control. However, before the loss of control, the
difference between the disposal price and the book value of the long-term equity investment corresponding to the disposed
equity is recognized as other comprehensive income in individual financial statements and transferred to the current profit
or loss when the control is lost. If the above-mentioned transactions are not part of a package transaction, accounting
treatment shall be carried out for each transaction separately according to whether the control is lost or not. If the control is
lost, the remaining equity is re-measured at fair value at the date when control is lost. The difference between the sum of the
consideration received on disposal and the fair value of remaining equity and the share of the former subsidiary's net assets
cumulatively calculated from the acquisition date according to the original proportion of shareholders' equity, is included in
the profit or loss in the period in which control is lost. If goodwill is involved, the amount of the goodwill shall be deducted
when calculating and determining the profit or loss on the disposal of the subsidiary. Other comprehensive income related
to the equity investment of the original subsidiary shall be accounted on the same basis as the subsidiary’s direct disposal
of relevant assets or liabilities when the control is lost. The shareholders’ equity recognized due to changes in shareholders’
equity other than net profit or loss, other comprehensive income and profit distribution related to the original subsidiary shall
be transferred to current profit or loss when the control is lost.
85
7 Classification of joint venture arrangement and methodsof joint operation accounting treatment
□Applicable √Not applicable
8 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.
9 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 confirmation, the amount of foreign currency transaction shall be translated into the amount of the
recording currency at the spot rate of 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 spot rate on the date of transaction,
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.
10 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 (a) has transferred substantially
almost all the risks and rewards of ownership of the financial asset, or (b) 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 collecting or 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.
86
2022
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 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.
87
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 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, the Group evaluated the expected credit loss on accounts receivable
by the aging portfolio.
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.
Derivative financial instruments
The Group carries out the exchange rate risk hedging by using derivative financial instruments, such as the forward
exchange contract and the foreign exchange option contract. Derivative financial instruments are initially measured at
their fair values on date of signing relevant derivative transaction contracts and subsequently measured at their fair
values. Derivative financial instrument with positive fair value is recognized as an asset, and that with negative fair value is
recognized as a liability.
Gains or losses from changes in fair values of derivative instruments are directly included in the current profit or loss,
unless they are related to the hedging accounting.
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.
11 Notes receivable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable
12 Accounts receivable
Determination and accounting treatment of the expected credit loss of accounts receivable
□Applicable √Not applicable
13 Receivables financing
□Applicable √Not applicable
14 Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
□Applicable √Not applicable
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15 Inventories
√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.
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.
Contract performance cost classified as current assets is detailed in inventories.
16 Contract assets
(1) 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 (10).
(2) Determination and accounting treatment of the expected credit loss of contract assets
□Applicable √Not applicable
17 Assets held for sale
√Applicable □Not applicable
A non-current asset or disposal group whose book value is recovered principally through sale rather than continuous
use is classified as held for sale. When all of the following conditions are met, it is classified as held for sale: the asset or
disposal group must be available for immediate sale in its present condition subject to terms that are usual and customary
for sales of such assets or disposal groups; its sales must be highly probable, i.e., the Company has made a decision on the
sale plan and has obtained a confirmed offer, and the sale is expected to be completed within one year (for the sales subject
to approval by relevant authority or regulatory department as required in relevant regulations, it has been approved). If the
control over a subsidiary is lost due to the sale of the investment in the subsidiary, regardless of whether part of the equity
investment is retained after the sale, as long as the conditions for classification as held for sale are met, the investment in
the subsidiary as a whole is classified as held for sale in the individual financial statements, and all the assets and liabilities
of the subsidiary are classified as held for sale in the consolidated financial statements.
If the book value of a non-current asset or disposal group (other than financial assets and deferred income tax assets)
held for sale is higher than the net amount of the fair value minus the selling expenses, the book value shall be written
down to the net amount of the fair value minus the selling expenses, the amount written down shall be recognized as assets
impairment losses and included in the current profit or loss, and the provision for impairment of assets held for sale is made
at the same time. No depreciation or amortization is made for the non-current assets held for sale or non-current assets in
disposal groups.
18 Debt investment
(1) Determination and accounting treatment of the expected credit loss of Debt investment
□Applicable √Not applicable
19 Other debt investment
(1) Determination and accounting treatment of the expected credit loss of other debt investment
□Applicable √Not applicable
20 Long-term receivables
(1) Determination and accounting treatment of the expected credit loss of long-term receivables
□Applicable √Not applicable
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21 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); for the other
comprehensive income before the combination date, at the disposal of such investment, the accounting treatment identical
to that for the direct treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognized
on account of the change in other shareholders’ equity of the investee other than net profit or loss, other comprehensive
income and profit distribution is transferred in the current profit or loss at the disposal of such investment; in which, after such
disposal, if such investment is still the long-term equity investment, it will be carried forward in proportion; if it is converted
into the financial instrument, it will be carried forward in full.
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), and the
combination cost includes the asset paid by the acquiree, liability incurred or borne by the acquiree, and the fair values
of issued equity securities; for the other comprehensive income held before the acquisition date and recognized due to
the accounting under equity method, at the disposal of such investment, the accounting treatment identical to that for the
direct treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognized on account
of the change in other shareholders’ equity of the investee other than net profit or loss, other comprehensive income and
profit distribution is transferred in the current profit or loss at the disposal of such investment; in which, after such disposal,
if such investment is still the long-term equity investment, it will be carried forward in proportion; if it is converted into the
financial instrument, it will be carried forward in full. The accumulated changes in fair values of the equity investments
held before the acquisition date, which was included in the other comprehensive income as the financial instruments, are
fully transferred in the retained earnings, on the accounting at 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 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
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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.
For disposal of long-term equity investments, the difference between the book value and the actual price shall be
included in the current investment income. For long-term equity investments recognized under equity method, when the
equity method is no longer adopted due to the disposal, accounting treatment should be made for other comprehensive
income previously recognized under the equity method by using the same basis for the investee to directly dispose the
relevant assets or liabilities. Shareholder's equity recognized from the investee's changes in other shareholder’s equity
other than net profit or loss, other comprehensive income and profit distribution should all transferred to the current profits
or losses. If the equity method is still adopted, the relevant other comprehensive income accounted by the original equity
method shall be accounted on the same basis as the invested entity's direct disposal of relevant assets or liabilities, and shall
be transferred to the current profit or loss in proportion. The shareholders’ equity recognized due to changes in shareholders’
equity of the investee other than net profit or loss, other comprehensive income and profit distribution shall be transferred to
the current profit or loss according to corresponding proportion.
The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until the
loss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as a
transaction dealing with the equity investment of the subsidiary and losing control. However, before the loss of control, the
difference between the disposal price and the book value of the long-term equity investment corresponding to the disposed
equity is recognized as other comprehensive income in individual financial statements and transferred to the current profit or
loss when the control is lost. If the above-mentioned transactions are not part of a package transaction, accounting treatment
shall be carried out for each transaction separately. If the control is lost, in the individual financial statements, for the
remaining equity, if the remaining equity after disposal can jointly control or has a significant impact on the original subsidiary,
it shall be recognized as long-term equity investment, and the accounting treatment shall be carried out according to relevant
provisions on the conversion of cost method into equity method; otherwise, it shall be recognized as a financial instrument,
and the difference between the fair value and the book value on the date of loss of control is included in the current profit or
loss.
22 Investment properties
Investment properties refer to properties that are held for the purposes of earning rental income, capital appreciation, or
some combination thereof, including land use rights and buildings that have been leased out.
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
Land use right Land useful lives 0%
value 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.
23 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
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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
Depreciation Annual
Category Useful lives (year) Residual value rate
method 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.
(3) Identification basis, valuation and depreciation method of fixed assets under financing lease
□Applicable √Not applicable
24 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.
25 Borrowing costs
√Applicable □Not applicable
The Group capitalizes the borrowing costs of acquisition or construction or production which may directly belong to
assets that are eligible for capitalization; and other borrowing costs are included in the current profit or loss. Assets eligible
for capitalization refer to fixed assets, investment property, inventories and other assets which may reach their intended use
or sale status only after long-time acquisition and construction or production activities.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred;
(2) The borrowing costs have already incurred; and
(3) Purchase, construction or manufacturing activities that are necessary to prepare the asset for its intended use or
sale have already started;
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:
(1) 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;
(2) 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.
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26 Biological assets
□Applicable √Not applicable
27 Oil and gas assets
□Applicable √Not applicable
28 Right-of-use assets
√Applicable □Not applicable
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, if there is a lease
incentive, less 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.
29 Intangible assets
(1) Valuation method, service life and impairment test
√Applicable □Not applicable
Intangible assets will be recognized only when relevant economic benefits may well flow into the Group and the costs
of intangible assets can be measured reliably, and initially measured at costs. However, if the fair value of the intangible
assets acquired in the business combination not under common control can be reliably measured, it should be recognized
as intangible assets and measured at fair value separately. When the Company reconstructs its corporate system, for the
intangible assets invested by the shareholders of the state-owned shares, the evaluation value confirmed by the state-owned
assets management department shall be served as the book value.
The useful life of an intangible asset is determined based on the period during which it can bring economic benefits to
the Group. If the said period cannot be predicted, it will be recognized as an intangible asset with indefinite useful life.
The useful lives of all kinds of intangible assets are determined as follows:
Useful life
Land use right Land useful lives
Software use fees 5 years
Proprietary technology 10 years
The land use rights acquired by the Group are usually accounted as intangible assets. For the plants and other buildings
developed and constructed by the Company, relevant land use rights and constructions shall be respectively accounted as
intangible assets and fixed assets. For externally purchased land and buildings, the related payments are distributed in the
land use right and buildings; those difficult to be distributed shall be all handled as fixed assets.
For the intangible assets with limited useful life, their amount shall be amortized at the straight-line method over its
useful life. The Group will reexamine the useful lives and amortization method of intangible assets with limited useful lives,
and make adjustments when necessary at the end of each year.
(2) Accounting policy of internal R & D expenditures
√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.
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30 Long-term asset impairment
√Applicable □Not applicable
The Group recognizes the asset impairment under the following methods except for inventories, contract assets and
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 formed by business combination to the relevant asset groups by a reasonable method. Where it is difficult to do
so, it shall be apportioned to the relevant portfolio of asset groups. 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 reporting segments as determined by the Group.
When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill, if any
indication shows that the asset groups or combinations of asset groups related to the goodwill may be impaired, the Group
shall first conduct an impairment test on the asset groups or combinations of asset groups not containing goodwill, calculate
the recoverable amount and recognize the corresponding impairment loss. Then, the Group shall conduct an impairment test
on the asset groups or asset groups portfolio containing goodwill, and compare it book value and recoverable amount: if the
recoverable amount is lower than book value, the amount of impairment losses should be firstly used to deduct book value
of goodwill allocated to the asset group or the asset group portfolio, and then deduct book value of other assets according to
the proportion of the book value of other assets other than the goodwill in the asset group or the asset group portfolio.
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.
31 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
32 Contract liabilities
(1) Recognition method of 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.
33 Employee compensation
Employee compensations refer to multiform remuneration or compensation offered by the Group in order to get services
provided by its employees or sever the labor relation. Employee compensation mainly includes short-term employee
compensation, post-employment benefits, dismissal benefits and other long-term employee benefits. The welfare provided
by the Company to employees’ spouses, children, dependents, family dependants of the deceased employee and other
beneficial owners also belong to employee compensation.
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(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
34 Lease liabilities
√Applicable □Not applicable
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 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.
35 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:
(1) This obligation is a present obligation of the Group;
(2) The performance of such obligation is likely to result in outflow of economic benefits from the Group;
(3) 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. On each balance sheet date, the Group shall review the book value of estimated liabilities. The Company shall
make corresponding adjustments to reflect the current best estimate if there is any conclusive evidence indicating that such
book value cannot reflect the current best estimate.
36 Share-based payment
□Applicable √Not applicable
37 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.
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38 Revenue
(1) Accounting policies for revenue recognition and measurement
√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
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. 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. By 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.
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 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.
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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.
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) Differences in revenue recognition accounting policies caused by different business models of similar businesses
□Applicable √Not applicable
39 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.
97
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;
(2) The cost expected to be incurred for the transfer of relevant goods or services.
40 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.
41 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) Taxable temporary differences are generated 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 accosting profits, nor affect the taxable income or deductible losses when the
transaction occurs.
(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:
(1) The deductible temporary difference is generated in the following transaction: the transaction is not a business
combination and it will affect neither accounting profits nor the taxable income (or deductible losses) when occurred.
(2) For the deductible temporary differences arising from investments in subsidiaries, associates and joint ventures,
the deferred income tax assets will be accordingly recognized when meeting the following conditions at the same time:
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.
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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.
42 Lease
(1) Accounting treatment methods of operating lease
□Applicable √Not applicable
(2) Accounting treatment methods of finance lease
□Applicable √Not applicable
(3) Determination and accounting treatment methods of lease under the new lease standard
√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 lease and low-value asset lease, the Group recognizes right of use assets and lease liabilities for
leases, and the accounting treatment is detailed in Note V.
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 the value of no more than RMB 50,000 when a single
leased asset is a new asset is recognized as a low-value asset lease. Where the Group subleases or expects to sublease a
leased asset, the original lease is not 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.
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.
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.
43 Other accounting policies and accounting estimates
√Applicable □Not applicable
Profit distribution
The Company's cash dividends are recognized as liabilities after approval at the general meeting.
99
Work safety expenses
The Company withdraws the work safety expenses according to provisions, includes them in the cost of related products
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
The Group measures the derivative financial instruments and equity instrument investment at fair value on each balance
sheet date. Fair value is the price received from sales of an asset or paid for transfer of a liability by a market participant in
an orderly transaction on the measurement date.
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.
Significant accounting judgment and estimate
The preparation of financial statements requires the management to make judgments, estimates and assumptions.
These judgments, estimates and assumptions will affect the reported amounts and disclosures of income, expenses, assets
and liabilities, and the disclosure of contingent liabilities on the balance sheet date. The results from the uncertainties of
these assumptions and estimates may lead to significant adjustments to the book amount of assets or liabilities that are
affected in the future.
Judgment
Determination of the performance progress of construction contracts (only applicable to transfer of control over a period
of time)
The Group determines the performance progress of the construction contracts by input method. To be more specific,
the Group determines the performance progress according to the proportion of the cumulative actual construction cost
to the estimated total cost, while the cumulative actual cost includes the direct cost and indirect cost in the process of
transferring goods to customers. The Group believes that the construction contract price with customers is determined on
the basis of construction cost, and the proportion of the actual construction cost to the estimated total cost 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 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
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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.
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. The fair value of unlisted equity investments is determined based on the estimated future cash flows discounted
at the current discount rate for other financial instruments with similar contract terms and risk characteristics. This requires
the Group to estimate the expected future cash flow, credit risk, fluctuation and discount rate; therefore, there is some
uncertainty.
44 Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
□Applicable √Not applicable
(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
45 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
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 VAT, and
the output tax is calculated as per 9%; the income from leasing of the equipment
VAT is applicable to the is applicable to VAT and the output tax is calculated as per 13% of the taxable
VAT sales of the Group’s income; the income from the sales of the equipment is applicable to the simple
products collection measures of 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.
Consumption tax / /
Sales tax / /
Urban maintenance Calculated and paid according to 7% and 3% of the actual turnover tax paid
VAT paid
and construction tax respectively.
The enterprise income
tax is calculated and paid
The group was awarded a new High-tech Enterprise Certificate (Certificate
in accordance with the
Number: GR202031006909) in December 2020 after reexamination, with the valid
Enterprise income tax Enterprise Income Tax Law
term of 3 years. The Company actually applied the enterprise income tax rate of
of People’s Republic of
15% this year (2021: 15%).
China (hereinafter referred
to as the “Income Tax Law”).
101
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. 16.50%
Shanghai Zhenhua Shipping Co., Ltd 25%
Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. 25%
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. 16.50%
Zhenhua Pufeng Wind Energy (HongKong) Co., Ltd. 16.50%
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. 25.80%
ZPMC Netherlands B.V. 25.80%
Verspannen B.V. 25.80%
ZPMC Espana S.L. 25%
ZPMC Italia S.r.l. 24%
ZPMC GmbH Hamburg 32.25%
ZPMC Lanka Company (Private) Limited 24%/30%
ZPMC North America Inc. 31%
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%
ZPMC Limited Liability Company 20%
ZPMC NA East Coast lnc. 28%
ZPMC Middle East FZE 0%
ZPMC UK LD 19%
Greenland Heavylift (Hong Kong) Limited 16.50%
GPO Grace Limited 0%
GPO Amethyst Limited 0%
GPO Sapphire Limited 0%
GPO Emerald Limited 0%
GPO Heavylift Limited 0%
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Name of taxpayer Income tax rate (%)
GPO Heavylift AS 0%
GPO Heavylift Pte Ltd 17%
ZPMC Latin America Holding Corporation 5%
Terminexus Co., Ltd. 16.50%
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%
Remark 1: Shanghai Zhenhua Heavy Industries Group (Nantong) Heavy Gear Reducer Co., Ltd won the “Hi-tech
Enterprise Certificate” (No. GR202232002981) after reexamination in October 2022, with the valid term of 3 years. Shanghai
Zhenhua Port Machinery Heavy Industries Co., Ltd. won the “Hi-tech Enterprise Certificate” (No. GR202231000204) after
reexamination in December 2022, with the valid term of 3 years. Shanghai Zhenhua Heavy Industries Electric Co., Ltd won
the “Hi-tech Enterprise Certificate” (No.: GR202031001911) after reexamination in November 2020, 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% (2021: 15%).
2 Tax preferences
□Applicable √Not applicable
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, 2022 December 31, 2021
Cash on hand 1,027,476 851,261
Bank deposits 2,374,073,961 4,448,986,616
Other monetary funds 21,946,276 121,999,707
Total 2,397,047,713 4,571,837,584
Including: total amount of overseas deposits 1,253,939,219 677,986,642
Deposits with finance companies
Other description
As at December 31, 2022, the other monetary funds, including the restricted deposit of RMB 21,946,276 (as at
December 31, 2021: RMB 121,999,707), were the money appropriated that was collected from the overseas projects and
deposited in the overseas regulatory accounts and the cash deposit deposited for application to the bank for the letter of
credit and letter of guarantee.
As at December 31, 2022, the overseas monetary fund deposited by the Group was RMB 1,253,939,219 (as at Dec. 31,
2021: RMB 677,986,642).
As at December 31, 2022, the bank deposits were current deposits. The interest income from current deposits is
calculated as per the interest rate of the current deposits.
103
2 Held-for-trading financial assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Financial assets measured at fair value through
877,483,342 1,153,533,922
the current profit or loss
Including:
Derivative financial assets – equity options (i) 8,438,278 8,438,278
Investments in shares of listed companies (ii) 869,045,064 1,145,095,644
Financial assets designated to be measured at
fair value through the current profit or loss
Including:
Total 877,483,342 1,153,533,922
Other description:
√Applicable □Not applicable
(i) As at December 31, 2022, 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, 2022, the listed company share investments held by the Group include 5.30% equity of Jiangxi
Huawu Brake Co., Ltd., 1.59% equity of Qingdao Port International Co., Ltd., 1.16% equity of CRSC, 0.02% equity of
COSCO Shipping Holdings Co., Ltd. and 0.001% equity of Shenwan Hongyuan Group 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, 2022 December 31, 2021
Bank acceptance bill
Commercial acceptance bill 56,114,657 3,979,800
Total 56,114,657 3,979,800
(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) Notes transferred to accounts receivable by the Company at the end of the period due to drawer’s failure in
performance
□Applicable √Not applicable
(5) 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
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to other
receivables for disclosure:
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
104
2022
(7) Notes receivable actually written off in the current period
□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, 2022
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 4,719,933,460
1- 2 years 856,147,852
2- 3 years 1,917,825,421
Over 3 years
3- 4 years 673,336,029
4- 5 years 176,228,829
Over 5 years 1,167,076,085
Total 9,510,547,676
(2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount Amount
(%) provision (%)
Provision for bad debts accrued on
896,540,136 9 825,285,390 92 71,254,746
an individual basis
Including:
Provision for bad debts by portfolio 8,614,007,540 91 1,491,612,431 17 7,122,395,109
Including
Total 9,510,547,676 / 2,316,897,821 / 7,193,649,855
December 31, 2021
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount Amount
(%) provision (%)
Provision for bad debts accrued on
898,273,314 11 655,457,495 73 242,815,819
an individual basis
Including:
Provision for bad debts by portfolio 7,579,394,793 89 1,373,359,856 18 6,206,034,937
Including
Total 8,477,668,107 / 2,028,817,351 / 6,448,850,756
105
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022
Name Provision for bad Proportion of
Book balance Reason for provision
debts provision (%)
Accounts receivable 1 475,031,639 403,776,893 85 Counterparty financial shortage
Accounts receivable 2 173,768,233 173,768,233 100 Contract dispute
Accounts receivable 3 93,954,000 93,954,000 100 Counterparty financial shortage
Accounts receivable 4 51,028,800 51,028,800 100 Contract dispute
Accounts receivable 5 43,053,946 43,053,946 100 Contract dispute
Accounts receivable 6 27,858,470 27,858,470 100 Contract dispute
Accounts receivable 7 10,208,916 10,208,916 100 Contract dispute
Accounts receivable 8 7,450,764 7,450,764 100 Contract dispute
Accounts receivable 9 7,495,088 7,495,088 100 Contract dispute
Accounts receivable 10 2,220,314 2,220,314 100 Contract dispute
Accounts receivable 11 3,576,178 3,576,178 100 Contract dispute
Accounts receivable 12 893,788 893,788 100 Contract dispute
Total 896,540,136 825,285,390 92 /
Description of individual provision for bad debts:
√Applicable □Not applicable
As at December 31, 2021, the accounts receivables with individual provision for bad debts are as follows:
Provision for bad Estimated credit
Book balance Reason for provision
debts loss ratio %
Accounts receivable 1 485,631,638 242,815,819 50 Counterparty financial shortage
Accounts receivable 2 169,011,372 169,011,372 100 Contract dispute
Accounts receivable 3 93,954,000 93,954,000 100 Counterparty financial shortage
Accounts receivable 4 51,028,800 51,028,800 100 Contract dispute
Accounts receivable 5 42,979,947 42,979,947 100 Contract dispute
Accounts receivable 6 25,502,864 25,502,864 100 Contract dispute
Accounts receivable 7 9,929,450 9,929,450 100 Contract dispute
Accounts receivable 8 7,289,912 7,289,912 100 Contract dispute
Accounts receivable 9 6,820,756 6,820,756 100 Contract dispute
Accounts receivable 10 3,273,790 3,273,790 100 Contract dispute
Accounts receivable 11 2,032,572 2,032,572 100 Contract dispute
Accounts receivable 12 818,213 818,213 100 Contract dispute
898,273,314 655,457,495
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to other
receivables for disclosure:
□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
106
2022
(4) Accounts receivable actually written off in the current period
□Applicable √Not applicable
(5) Top 5 accounts receivable in terms of ending balance presented by debtor
□Applicable √Not applicable
(6) Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
In 2022, the Group entered into an asset securitization transaction “Huatai-ZPMC Asset-Backed Securities Special Plan
Series I”, including some accounts receivable and contract assets measured at amortized cost as the underlying assets.
It applied for the establishment of a special plan through the plan administrator, and applied for the registration of a shelf
scale of RMB 2 billion, with an initial issue size of RMB 1 billion. In 2022, the book balance of the derecognized accounts
receivable was RMB 837,502,837 and the book balance of contract assets was RMB 182,227,057 (2021: nil), and a loss of
RMB 20,135,378 (2021: nil) upon derecognition was included in investment income.
As at December 31, 2022, the long-term accounts receivable were RMB 191,217,707 (as at December 31, 2021: RMB
107,145,406), which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 2,469,639,584 (as
at December 31, 2021: Long-term borrowings of RMB 2,397,403,882).
Changes in the provision for bad debts of accounts receivable are as follows:
January 1, 2022 Provision in 2022 Recovery or reversal in 2022 Write-off in 2022 December 31, 2022
Year 2022 2,028,817,351 665,296,983 (343,137,208) (34,079,305) 2,316,897,821
Year 2021 1,874,771,667 497,724,257 (343,678,573) - 2,028,817,351
Remark: Accounts receivable and contract assets are derecognized due to asset-backed security business,
and accordingly, the accrued bad debt losses of RMB 34,079,305 and provision for impairment of contract assets of
RMB19,597,098 (2021: Nil) were written off.
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
2022 2021
Book balance Estimated Expected credit Book balance Estimated Expected credit
of estimated credit loss loss for the entire of estimated credit loss loss for the
default ratio (%) duration default ratio (%) entire duration
Within 1 year 4,717,806,043 4 183,619,656 3,681,892,745 4 134,291,477
1-2 years 856,147,852 13 111,990,696 2,449,354,394 15 366,679,751
2-3 years 1,808,064,282 26 470,904,017 297,376,432 25 74,906,578
3-4 years 230,551,083 38 87,894,312 164,454,110 45 74,134,811
4-5 years 161,998,029 59 94,864,959 160,142,006 66 104,945,230
Over 5 years 839,440,251 65 542,338,791 826,175,106 75 618,402,009
Total 8,614,007,540 1,491,612,431 7,579,394,793 1,373,359,856
As at December 31, 2022, top 5 accounts receivable in terms of ending balance presented by debtor summarized and
analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 1,676,814,282 569,678,207 18
107
As at December 31, 2021, top 5 accounts receivable in terms of ending balance presented by debtor summarized and
analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 1,521,031,649 490,608,435 18
6 Receivables financing
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Bank acceptance bill 145,939,266 116,644,174
Digital debt voucher of accounts receivable 293,973,162 128,764,086
Total 439,912,428 245,408,260
Increase or decrease and changes in fair value of receivables financing in the current period:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to other
receivables for disclosure:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Notes receivable that had been endorsed or discounted and not matured on the balance sheet date are as follows:
2022 2021
Amount Amount not Amount Amount not
derecognized derecognized derecognized derecognized
Bank acceptance bill 574,174,330 - 1,075,578,905 -
Digital debt voucher of accounts
39,493,607 - 37,987,378 -
receivable
Total 613,667,937 - 1,113,566,283 -
7 Advances to suppliers
(1) Presentation of advances to suppliers by account age
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 821,657,082 86 961,833,606 83
1-2 years 26,224,985 3 72,585,749 6
2-3 years 18,112,942 2 39,177,439 4
Over 3 years 85,217,413 9 85,831,056 7
Total 951,212,422 100 1,159,427,850 100
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, 2022, the advances to suppliers of the Company with the aging over one year was RMB
129,555,340 (as at December 31, 2021: RMB 197,594,244), 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.
108
2022
(2) Top 5 advances to suppliers in terms of ending balance presented by prepaid object
√Applicable □Not applicable
As at December 31, 2022, top 5 advances to suppliers in terms of ending balance presented by debtor summarized and
analyzed as follows:
Amount Proportion in total advances to suppliers %
Total advances to suppliers of top 5 balances 231,947,919 24
As at December 31, 2021, top 5 advances to suppliers in terms of ending balance presented by debtor summarized and
analyzed as follows:
Amount Proportion in total advances to suppliers %
Total advances to suppliers of top 5 balances 605,483,612 52
Other description
None
Other description
□Applicable √Not applicable
8 Other receivables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Interest receivable
Dividends receivable 8,000,000
Other receivables 987,545,297 940,522,896
Total 995,545,297 940,522,896
Other description:
□Applicable √Not applicable
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
Other description:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
√Applicable □Not applicable
Item (or the invested entity) December 31, 2022 December 31, 2021
Suzhou Chuanglian Electric Drive Co., Ltd. 8,000,000
Total 8,000,000
(5) Significant dividends receivable aging over 1 year
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
109
Other receivables
(7) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Aging December 31, 2022
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 889,793,874
1-2 years 107,718,693
2-3 years 14,649,282
Over 3 years
3-4 years 8,519,028
4-5 years 43,062,407
Over 5 years 188,072,813
Total 1,251,816,097
(8) Classification by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Nature of funds December 31, 2022 December 31, 2021
Unpaid taxes receivable 385,097,393 504,714,202
Customs-related security deposit 267,023,626 61,537,519
Secured repayment 164,124,678 164,124,678
Advance payment receivable on behalf of
89,988,184 107,259,811
the third party
Bid and performance bond 80,063,435 70,980,397
Receivables from third parties 65,401,708 51,255,044
Lease payment receivable 41,353,253 33,434,667
Money on call for product field service 23,907,573 23,460,236
Staff borrowings receivable 13,446,973 15,006,084
Export rebates 7,654,374 2,332,792
Equity disposal receivables 62,210,484
Others 113,754,900 84,481,123
Total 1,251,816,097 1,180,797,037
(9) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Expected credit Expected credit loss for Expected credit loss for
Provision for bad debts Total
losses over the the entire duration (no the entire duration (credit
next 12 months credit impairment) impairment has occurred)
Balance as at January 1, 2022 9,509,850 230,764,291 240,274,141
Balance as at January 1, 2022 in
current period
--Transferred to Stage II
--Transferred to Stage III
--Reversal to Stage II
--Reversal to Stage I
110
2022
Stage I Stage II Stage III
Expected credit Expected credit loss for Expected credit loss for
Provision for bad debts Total
losses over the the entire duration (no the entire duration (credit
next 12 months credit impairment) impairment has occurred)
Provision in the current period 23,996,659 23,996,659
Reversal in the current period
Write-off in the current period
Charge-off in the current period
Other changes
Balance as at December 31, 2022 33,506,509 230,764,291 264,270,800
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
(10) Provision for bad debts
□Applicable √Not applicable
(11) Other receivables actually written off in the current period
□Applicable √Not applicable
(12) 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
December 31,
Name Nature Aging total balance of other for bad debts at the
2022
receivables (%) end of the year
Customs-related
Other receivables 1 267,023,626 Within 1 year 21
security deposit
Other receivables 2 Secured repayment 164,124,678 5-6 years 13 164,124,678
Taxes on outstanding
Other receivables 3 65,462,896 3-4 years 5 23,571,255
payment receivable
Other receivables 4 Advance payment 54,433,215 2-6 years 4 54,433,215
Receivables from
Other receivables 5 29,228,919 Within 1 year 2
related parties
Total / 580,273,334 / 242,129,148
(13) Receivables involving government subsidies
□Applicable √Not applicable
(14) Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(15) Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
111
9 Inventories
(1) Classification
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Provision for inventory Provision for inventory
Item depreciation/ provision depreciation/
Book balance for impairment of Book value Book balance provision for Book value
contract performance impairment of contract
cost performance cost
Raw materials 3,563,755,666 51,313,490 3,512,442,176 2,904,965,379 54,380,282 2,850,585,097
Goods in process 18,402,900,715 651,631,433 17,751,269,282 20,163,020,910 1,119,442,227 19,043,578,683
Stock commodities 20,380,324 20,380,324 29,428,589 29,428,589
Revolving materials
Consumptive biological
assets
Contract performance
229,287,566 229,287,566 150,182,361 150,182,361
cost
Total 22,216,324,271 702,944,923 21,513,379,348 23,247,597,239 1,173,822,509 22,073,774,730
(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
December 31, December 31,
Item Reversal or write-
2021 Provision Other Other 2022
off
Raw materials 54,380,282 9,950,010 13,016,802 51,313,490
Goods in process 1,119,442,227 219,787,553 687,598,347 651,631,433
Stock commodities
Revolving materials
Consumptive biological
assets
Contract performance cost
Total 1,173,822,509 229,737,563 700,615,149 702,944,923
(3) Description of the amount of capitalized borrowing costs included in ending balance of inventories
□Applicable √Not applicable
(4) Description of the current amortization amount of contract performance cost
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Provision for inventory depreciation is as follows:
Reasons for provision for depreciation
Specific basis for determination of net realizable
of inventories reversed or written-off in
values
the current year
Difference between the net realizable value of raw
Raw materials and outsourced Value recovery, consuming or external
materials and outsourced parts and components and
parts and components sales
their book value resulting from product price fall
Difference between the net realizable value and the Value recovery, transferred for self-use or
Goods in process
book value of goods in process external sales
112
2022
Total amount of possible penalties for failure to fulfill the obligations as contracted:
2022 2021
Valid letter of guarantee signed by the bank 14,198,954,467 12,355,828,402
Letter of guarantee not signed by the bank 8,124,948,765 7,408,487,578
Total 22,323,903,232 19,764,315,980
10 Contract assets
(1) Particulars about contract assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Warranty balance recognized at the time
649,826,261 49,774,565 600,051,696 452,889,676 54,001,996 398,887,680
of control transfer (Remark 1)
Outstanding payments for construction
2,704,018,170 60,996,730 2,643,021,440 1,626,265,619 53,697,449 1,572,568,170
completed (Remark 2)
Total 3,353,844,431 110,771,295 3,243,073,136 2,079,155,295 107,699,445 1,971,455,850
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 infrastructure construction services and steel structure 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 engineering construction services and the delivery of steel structure
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, 2022, the contract assets were RMB 133,406,311 (as at December 31, 2021: RMB 38,384,855),
which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 2,469,639,584 (as at December
31, 2021: Long-term borrowings of RMB 2,397,403,882). See 45(ii) in Note VII for details.
(2) Amount of and reason for significant changes in book value during the reporting period
□Applicable √Not applicable
(3) Provision for impairment of contract assets in current period
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Provision in the current Reversal in the Write-off/charge-off in the
Item Reason
period current period current period
Warranty balance recognized at the
32,416,999 17,047,332 19,597,098
time of control transfer
Outstanding payments for
7,299,281
construction completed
Total 39,716,280 17,047,332 19,597,098 /
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to other
receivables for disclosure:
□Applicable √Not applicable
113
Other description:
√Applicable □Not applicable
The contract assets with provision for impairment loss by credit risk features portfolio are as follows:
2022 2021
Book balance Estimated Expected credit Book balance Estimated Expected credit
of estimated credit loss rate loss in the of estimated credit loss rate loss in the
default (%) entire duration default (%) entire duration
Within 1 year 3,096,872,055 2 68,072,038 1,742,068,619 3 56,239,177
1-2 years 234,347,021 16 36,474,555 335,379,230 15 50,918,891
2-3 years 22,625,355 28 6,224,702 1,282,051 27 348,205
Over 3 years - - - 425,395 45 193,172
Total 3,353,844,431 110,771,295 2,079,155,295 107,699,445
11 Assets held for sale
√Applicable □Not applicable
Other description:
On December 25, 2021, Shanghai Zhenhua Shipping Co., Ltd (“Shipping Company”), a subsidiary of the Group, entered
into a ship sales contract with a third party for the sale of a ship, under which the ownership of the ship was transferred to
the buyer upon delivery of the ship to and acceptance by the buyer in accordance with the requirements of the contract. On
December 31, 2021, the Group classified the ship with a net value of RMB15,167,288 as assets held for sale. The said ship
was duly delivered to and accepted by the buyer in 2022.
12 Non-current assets due within one year
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Debt investment due within one year
Other debt investments due within one year
Long-term receivables due within one year 900,213,411 1,437,034,591
Total 900,213,411 1,437,034,591
Important debt investment and other debt investments due at the end of the period:
□Applicable √Not applicable
Other description
None
13 Other current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Contract acquisition cost
Return cost receivable
Input tax to be deducted 261,819,250 346,871,563
Prepaid income tax 17,248,091 12,933,785
Total 279,067,341 359,805,348
Other description
None
114
2022
14 Debt investment
(1) Particulars about debt investment
□Applicable √Not applicable
(2) Important debt investment at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□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
Other description
□Applicable √Not applicable
15 Other debt investments
(1) Particulars about other debt investments
□Applicable √Not applicable
(2) Important other debt investments at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□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
Other description:
□Applicable √Not applicable
16 Long-term receivables
(1) Long-term receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Provision Discount
Item Provision
Book balance for bad Book value Book balance Book value rate range
for bad debt
debt
Financing lease
Including: Unrealized financing
income
Goods sold on installment
Services provided on installment
Receivables from “Building –
Transfer” project
- Principal 3,057,984,503 3,057,984,503 3,954,505,577 3,954,505,577
- Interest receivable 244,494,473 244,494,473 156,936,397 156,936,397
Less: Long-term receivables due
900,213,411 900,213,411 1,437,034,591 1,437,034,591
within one year
Total 2,402,265,565 2,402,265,565 2,674,407,383 2,674,407,383 /
(2) Provision for bad debts
□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
(3) Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
115
(4) Amount of assets and liabilities formed by transferring long-term receivables and continuing involvement
□Applicable √Not applicable
Other description
√Applicable □Not applicable
As at December 31, 2022 and December 31, 2021, 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, 2022, the long-term accounts receivable was RMB 2,212,190,758 (as at December 31, 2021: RMB
2,177,499,634), which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 2,469,639,584 (as
at December 31, 2021: Long-term borrowings of RMB 2,397,403,882).
Aging analysis of long-term receivable is as follows:
Item 2022 2021
Within 1 year 524,957,024 872,444,810
1-2 years 489,642,736 290,550,519
2-3 years 198,310,855 606,243,813
Over 3 years 2,089,568,361 2,342,202,832
Sub-total 3,302,478,976 4,111,441,974
Less: Long-term receivables due within one year 900,213,411 1,437,034,591
Total 2,402,265,565 2,674,407,383
17 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 December 31, impairment at
Invested entity Dividends or
2021 Further Reduced on investments of other Changes in Provision for 2022 the end of the
profit declared Other
investment investment under the comprehensive other equity impairment year
to be distributed
equity method income
I. Joint ventures
Jiangsu Longyuan Zhenhua
323,033,681 76,902,400 -35,000,000 364,936,081
Marine Engineering Co., Ltd
ZPMC Mediterranean Liman
396,692 396,692
Makinalari Ticaret Anonim Sirketi
ZPMC-OTL MARINE
CONTRACTOR LIMITED
Zhenhua Marine Energy (HK)
Co., Ltd. (i)
Cranetech Global Sdn. Bhd. 632,180 632,180
Sub-total 324,062,553 76,902,400 -35,000,000 365,964,953
II. Associates
CCCC Financial Leasing Co.,
608,658,400 65,045,550 625,583 674,329,533
Ltd (i)
CCCC Yancheng Construction
418,516,242 - 418,516,242
Development Co., Ltd.
CCCC Estate Yixing Co., Ltd. 192,917,083 13,878,398 206,795,481
CCCC South American
167,286,613 11,622,933 15,481,457 194,391,003
Regional Company SARL
China communications
55,146,147 197,865 4,636,853 59,980,865
Construction USA Inc.
CCCC Photovoltaic
34,765,693 54,070 34,819,763
Technology Co., Ltd (iii)
ZPMC Changzhou Coatings
19,048,580 3,299,000 -4,588,107 17,759,473
Co., Ltd.
Suzhou Chuanglian Electric
21,483,398 -851,032 -8,000,000 12,632,366
Drive Co., Ltd.
CCCC Xiongan Urban
Construction Development 7,512,971 27,362 7,540,333
Co., Ltd. (ii)
Shanghai Ocean Engineering
Equipment Manufacturing 5,820,675 -312,664 5,508,011
Innovation Center Co., Ltd.
116
2022
Increase/decrease in the current period
Provision for
December 31, Profit or loss Adjustment December 31, impairment at
Invested entity Dividends or
2021 Further Reduced on investments of other Changes in Provision for 2022 the end of the
profit declared Other
investment investment under the comprehensive other equity impairment year
to be distributed
equity method income
ZPMC Southeast Asia Pte. Ltd 2,678,397 1,392,438 4,070,835
Shanghai Xingyi Construction
1,478,368 -907,301 571,067
Technology Co., Ltd.
CCCC Marine Engineering &
Technology Research Center 17,111,832 -17,165,758 53,926
Co., Ltd.
Sub-total 1,517,658,706 34,765,693 -17,165,758 93,500,545 20,743,893 -12,588,107 1,636,914,972
Total 1,841,721,259 34,765,693 -17,165,758 170,402,945 20,743,893 -47,588,107 2,002,879,925
Other description
Joint ventures:
(i) 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. 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
Item December 31, 2022 December 31, 2021
Hunan Fengri Power & Electric Co., Ltd. 30,657,862 27,201,190
CCCC Highway Bridges National Engineering Research Centre Co., Ltd. 22,151,670 20,644,018
CCCC National Engineering Research Center of Dredging Technology
8,938,170 8,673,049
and Equipment Co., Ltd.
Ningbo Weilong Port Machinery Co., Ltd. 5,825,195 2,809,856
Shenyang Weichen Crane Equipment Co., Ltd. 5,205,300 6,003,344
ZPMC Longchang Lifting Equipment Co., Ltd. 697,422 948,588
21st Century Science and Technology Investment Co., Ltd.
Total 73,475,619 66,280,045
117
(2) Equity instrument investment not held for trading
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount Reasons for
Dividend Reasons for financial
of other transferring
income assets designated
comprehensive other
recognized Accumulated Accumulated to be measured at
Item income comprehensive
in the gains losses fair value through
transferred income into
current other comprehensive
to retained retained
period income
earnings earnings
Hunan Fengri Power & Strategic investment,
335,790 10,659,702
Electric Co., Ltd. long-term holding
CCCC Highway Bridges
Strategic investment,
National Engineering 9,151,670
long-term holding
Research Centre Co., Ltd.
CCCC National
Engineering Research
Strategic investment,
Center of Dredging 2,538,170
long-term holding
Technology and
Equipment Co., Ltd.
Ningbo Weilong Port Strategic investment,
4,529,195
Machinery Co., Ltd. long-term holding
Shenyang Weichen Crane Strategic investment,
3,705,300
Equipment Co., Ltd. long-term holding
ZPMC Longchang Lifting Strategic investment,
102,578
Equipment Co., Ltd. long-term holding
21st Century Science and
Strategic investment,
Technology Investment 30,000,000
long-term holding
Co., Ltd.
Other description:
□Applicable √Not applicable
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, 2021 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, 2022 555,622,992 209,845,794 765,468,786
118
2022
Buildings and Construction in
Item Land use right Total
constructions progress
II. Accumulative depreciation and amortization
1. Balance as at December 31, 2021 227,466,743 76,924,626 304,391,369
2. Increase in current period 18,229,925 5,353,357 23,583,282
(1) Provision or amortization 18,229,925 5,353,357 23,583,282
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2022 245,696,668 82,277,983 327,974,651
III. Provision for impairment
1. Balance as at December 31, 2021
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2022
IV. Book value
1. Book value at the end of the period 309,926,324 127,567,811 437,494,135
2. Book value at the beginning of the period 328,156,249 132,921,168 461,077,417
(2) Investment property without certificate of title
□Applicable √Not applicable
Other description
□Applicable √Not applicable
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, 2021 11,154,426,579 6,995,874,311 290,629,437 240,705,608 15,660,479,411 34,342,115,346
2. Increase in current period 202,463,593 234,327,846 70,057,008 15,199,897 1,361,394,420 1,883,442,764
(1) Purchase 7,973,196 80,275,913 69,606,412 14,640,093 2,413,394 174,909,008
(2) Transfer-in of construction in progress 194,490,397 150,311,959 - 559,804 1,079,194,000 1,424,556,160
(3) Increase in business combination
(4) Exchange rate changes 3,739,974 450,596 279,787,026 283,977,596
3. Decrease in current period 5,556,181 60,422,491 5,976,418 13,598,481 85,553,571
(1) Disposal or scrap 5,556,181 60,422,491 5,976,418 13,598,481 85,553,571
4. 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
119
Office and Transportation
Buildings and Machinery
Item electronic facilities Ship Total
constructions equipment
equipment (Excluding ship)
II. Accumulated depreciation
1. Balance as at December 31, 2021 4,605,387,463 5,446,925,688 229,204,742 169,891,723 3,872,160,993 14,323,570,609
2. Increase in current period 368,392,707 218,410,627 21,029,659 9,832,936 587,786,352 1,205,452,281
(1) Provision 368,392,707 215,739,141 20,853,261 9,832,936 534,614,357 1,149,432,402
(2) Exchange rate changes 2,671,486 176,398 53,171,995 56,019,879
3. Decrease in current period 2,700,016 31,823,741 4,009,145 13,598,479 52,131,381
(1) Disposal or scrap 2,700,016 31,823,741 4,009,145 13,598,479 52,131,381
4. 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
III. Provision for impairment
1. Balance as at December 31, 2021
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal or scrap
4. Balance as at December 31, 2022
IV. Book value
1. Book value at the end of the period 6,380,253,837 1,536,267,092 108,484,771 76,180,844 12,561,926,486 20,663,113,030
2. Book value at the beginning of the
6,549,039,116 1,548,948,623 61,424,695 70,813,885 11,788,318,418 20,018,544,737
period
(2) Temporary idle fixed assets
□Applicable √Not applicable
(3) Fixed assets acquired under finance leases
□Applicable √Not applicable
(4) Fixed assets leased out through operating lease
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Book value at the end of the period
Vessel 3,191,261,227
(5) 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 581,845,146 Related procedures are still in process
Other description:
√Applicable □Not applicable
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, 2021, the following fixed assets were taken as loan mortgage:
Borrowings
Original price Book value
Nature Amount
Vessel 4,593,927,380 4,025,131,400 Long-term payables 1,778,490,134
120
2022
As at December 31, 2022 and December 31, 2021, the book values of fixed assets for operating lease were as follows:
2022 2021
Vessel 3,191,261,227 3,309,462,732
As at December 31, 2022, the fixed assets with pending certificate of title were as follows:
Book value Reasons for pending certificate of title
Buildings and constructions 581,845,146 Related procedures are still in process
Liquidation of fixed assets
□Applicable √Not applicable
22 Construction in progress
Item presentation
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Construction in progress
(1) Particulars about construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Project Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Large machinery and engineering equipment of the base
4,541,537,285 4,541,537,285 4,238,346,367 4,238,346,367
under construction
Infrastructure construction of Nantong Base 145,778,657 145,778,657 187,156,060 187,156,060
Infrastructure construction of Changxing Base 127,496,938 127,496,938 115,015,195 115,015,195
Large mechanical reconstruction and upgrading project 23,250,608 23,250,608 144,563,874 144,563,874
Infrastructure construction of Nanhui Base 750,564 750,564 6,700,504 6,700,504
Total 4,838,814,052 4,838,814,052 4,691,782,000 4,691,782,000
(2) Changes of major construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount
Proportion of Including:
transferred Other Cumulative Capitalization rate
cumulative capitalization
December 31, Increase in the into fixed decreases in December Construction amount of for the interest in
Project Budget project of the interest Fund source
2021 current period assets in the current 31, 2022 progress interest the current period
investment in in the current
the current period capitalized (%)
budget (%) period
period
Infrastructure
Self-owned
construction of 7,980,746,771 187,156,062 22,756,476 64,133,879 145,778,659 85 85
funds
Nantong Base
Infrastructure Self-owned
construction of 9,109,560,500 115,015,195 15,132,268 2,650,525 127,496,938 80 80 23,531,836 funds and bank
Changxing Base borrowings
Large machinery
and engineering Self-owned
equipment of 10,573,653,390 4,238,346,364 401,940,399 98,749,481 4,541,537,282 85 85 321,439,692 35,127,073 2.53 funds and bank
the base under borrowings
construction
Infrastructure
Self-owned
construction of 562,287,425 6,700,505 10,722,626 16,672,566 750,565 88 88
funds
Nanhui Base
Large mechanical
Self-owned
reconstruction and 1,879,876,710 144,563,874 41,842,444 163,155,710 23,250,608 51 51
funds
upgrading project
Total 30,106,124,796 4,691,782,000 492,394,213 345,362,161 4,838,814,052 / / 344,971,528 35,127,073 / /
121
(3) Provision for impairment of construction in progress in the current period
□Applicable √Not applicable
Other description
□Applicable √Not applicable
Engineering materials
(4) Particulars about engineering materials
□Applicable √Not applicable
23 Productive biological assets
(1) Productive biological assets with cost measurement model
□Applicable √Not applicable
(2) Productive biological assets measured by fair value
□Applicable √Not applicable
Other description
□Applicable √Not applicable
24 Oil and gas assets
□Applicable √Not applicable
25 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, 2021 15,473,366 3,619,846 19,093,212
2. Increase in current period 15,862,169 15,862,169
(1) Provision 15,862,169 15,862,169
3. Decrease in current period
4. Balance as at December 31, 2022 31,335,535 3,619,846 34,955,381
II. Accumulated depreciation
1. Balance as at December 31, 2021 9,893,798 1,547,164 11,440,962
2. Increase in current period 10,136,896 1,446,072 11,582,968
(1) Provision 10,136,896 1,446,072 11,582,968
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 2022 20,030,694 2,993,236 23,023,930
III. Provision for impairment
1. Balance as at December 31, 2021
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Provision
4. Balance as at December 31, 2022
IV. Book value
1. Book value at the end of the period 11,304,841 626,610 11,931,451
2. Book value at the beginning of the period 5,579,568 2,072,682 7,652,250
Other description:
None
122
2022
26 Intangible assets
(1) Particulars about intangible assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
PPP project
Land use Software use Nonproprietary
Item contract assets Total
right fee technology
(Remark 1)
I. Original book value
1. Balance as at December 31, 2021 4,200,351,596 97,454,438 65,296,171 144,091,342 4,507,193,547
2. Increase in current period 8,286,900 7,325,058 231,051,461 246,663,419
(1) Purchase 8,286,900 7,325,058 231,051,461 246,663,419
(2) Internal R & D
(3) Increase in business combination
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 2022 4,208,638,496 104,779,496 65,296,171 375,142,803 4,753,856,966
II. Accumulated amortization
1. Balance as at December 31, 2021 976,840,556 64,723,928 65,201,807 1,106,766,291
2. Increase in current period 86,065,428 7,187,476 93,252,904
(1) Provision 86,065,428 7,187,476 93,252,904
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 2022 1,062,905,984 71,911,404 65,201,807 1,200,019,195
III. Provision for impairment
1. Balance as at December 31, 2021
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 2022
IV. Book value
1. Book value at the end of the period 3,145,732,512 32,868,092 94,364 375,142,803 3,553,837,771
2. Book value at the beginning of the period 3,223,511,040 32,730,510 94,364 144,091,342 3,400,427,256
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, 2022, 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 2.584 billion, and the accumulated investment is RMB 375 million.
In 2022, total technology research and development expenses of the Group amounted to RMB 1,118,337,091 (2021:
RMB 883,154,222) (See Note VII (65)). These technology research and development expenses are not capitalized.
At the end of the period, the proportion of intangible assets formed through internal R&D in the balance of intangible
assets is 0.
(2) Land use right without certificate of title
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
123
27 Development expenditures
□Applicable √Not applicable
28 Goodwill
(1) Original book value of goodwill
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Name of the invested Increase in current period Decrease in current period
December 31, December
entity or the matters Formed by business
2021 Other Disposal Other 31, 2022
forming goodwill combination
ZPMC Qidong Marine
149,212,956 149,212,956
Engineering Co., Ltd.
Verspannen B.V. 5,412,807 5,412,807
Greenland Heavy lift
104,012,666 9,607,264 113,619,930
(Hong Kong) Limited
Total 258,638,429 9,607,264 268,245,693
Remark 1: The decrease in the current year was caused by the translation differences of foreign currency statement.
(2) Provision for impairment of goodwill
□Applicable √Not applicable
(3) Information about the asset group or portfolio of the goodwill
□Applicable √Not applicable
(4) Explain the goodwill impairment test process, key parameters (such as the growth rate during forecast period when
estimating the present value of future cash flow, growth rate during stable period, profit rate, discount rate, forecast period, if
applicable) and the recognition method of goodwill impairment loss
□Applicable √Not applicable
(5) Impact of goodwill impairment test
□Applicable √Not applicable
Other description
√Applicable □Not applicable
As at December 31, 2022, 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 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 8.68%-17.08%
Perpetual growth rate 2.30%
Gross profit rate 14.53%-16.05%
Pre-tax discount rate 12.72%
GHHL semi-submerged ship transport assets group
The recoverable amount of GHHL semi-submerged ship transport assets group combination is determined based on
the expected future cash flow of the 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.
124
2022
The main assumptions of the future cash flow discount method:
Number of customized short-distance and long-distance transport
5 /year/vessel
service contracts expected to be obtained
Vessel utilization rate of general charter party 65.00%
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:
GHHL semi-submerged ship
Heavy equipment asset group Total
transport assets group
2022 2021 2022 2021 2022 2021
Book amount of goodwill 154,625,763 154,625,763 113,619,930 104,012,666 268,245,693 258,638,429
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.
29 Long-term deferred expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amortization
December Increase in the Other December 31,
Item in the current
31, 2021 current period decreases 2022
period
Improvement expenditure of fixed
103,664 438,767 132,561 409,870
assets under operating lease
Total 103,664 438,767 132,561 409,870
Other description:
None
30 Deferred income tax assets/liabilities
(1) Deferred income tax assets before offsetting
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Item Deductible temporary Deferred income Deductible temporary Deferred income
differences tax assets differences tax assets
Provision for impairment of assets 3,091,053,227 457,057,874 3,204,942,163 482,413,791
Unrealized profits of internal
184,945,333 27,741,800 196,019,600 29,402,940
transactions
Deductible loss 2,602,902,080 390,435,312 1,949,811,238 292,471,684
Estimated liabilities 146,025,378 21,903,807 176,577,960 26,486,694
Wages and salaries unpaid 29,183,742 4,377,561 29,422,842 4,413,426
Interest unpaid 27,094,840 4,064,225 27,586,758 4,138,014
Unrealized contract gross profit 81,347,551 12,202,133 93,383,115 14,007,469
Total 6,162,552,151 917,782,712 5,677,743,676 853,334,018
125
(2) Deferred income tax liabilities before offsetting
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
Asset evaluation increment from business
89,156,113 13,373,417 98,184,464 14,727,670
combination not under common control
Changes in fair value of other debt investments
Changes in fair value of other equity investment 30,481,459 4,572,219 23,285,885 3,492,883
Changes in fair value of held-for-trading
217,813,738 32,716,168 471,149,451 70,716,525
financial assets
Depreciation of fixed assets 598,916,493 98,420,429 411,509,499 67,567,605
Total 936,367,803 149,082,233 1,004,129,299 156,504,683
(3) Deferred income tax assets or liabilities presented by net amount after offset
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Balance of deferred Offset amount of Balance of deferred
Offset amount of
income tax assets deferred income tax income tax assets and
deferred income tax
Item and liabilities after assets and liabilities liabilities after offset
assets and liabilities at
offset at the end of at the beginning of at the beginning of
the end of the period
the period the period the period
Deferred income tax assets 49,841,261 867,941,451 79,628,344 773,705,674
Deferred income tax liabilities 49,841,261 99,240,972 79,628,344 76,876,339
(4) Details of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Deductible temporary differences 737,902,172 626,136,242
Deductible losses 1,419,947,439 1,766,772,244
Total 2,157,849,611 2,392,908,486
(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, 2022 December 31, 2021 Remark
2022 242,730,754
2023 373,743,427 484,638,866
2024 244,363,628 362,754,468
2025 304,004,857 405,492,688
2026 271,098,107 271,155,468
2027 226,737,420
Total 1,419,947,439 1,766,772,244 /
Other description:
□Applicable √Not applicable
126
2022
31 Other non-current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Contract acquisition cost
Contract performance cost
Return cost receivable
Contract assets
Outstanding payments for
3,710,497,198 3,710,497,198 2,938,412,661 2,938,412,661
construction completed
Contract warranty balance
526,801,140 25,018,867 501,782,273 822,602,860 37,855,051 784,747,809
receivable
Advance payment for buildings 33,781,740 33,781,740 33,781,740 33,781,740
Total 4,271,080,078 25,018,867 4,246,061,211 3,794,797,261 37,855,051 3,756,942,210
Other description:
As at December 31, 2022, other non-current assets of RMB 3,572,872,352 (as at December 31, 2021: RMB
2,827,154,241) were pledged to the bank as security for long-term borrowings of RMB 2,469,639,584 (as at December 31,
2021: long-term borrowings of RMB 2,397,403,882). See 45(ii) in Note VII.
The changes in the provision for impairment of the contract warranty balance receivable are as follows:
Balance at the beginning of Provision in the Reversal in the Balance at the end of
the current year current year current year the current year
2022 37,855,051 23,662,840 (36,499,024) 25,018,867
2021 18,260,301 21,985,570 (2,390,820) 37,855,051
32 Short-term borrowings
(1) Classification of short-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Pledged borrowings
Mortgage borrowings
Guaranteed borrowings 456,337,004
Fiduciary borrowings 1,793,682,952 5,521,355,363
Total 1,793,682,952 5,977,692,367
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
As at December 31, 2022, the annual interest rate on the aforesaid borrowings ranges from 0.25% to 4.50% (as at
December 31, 2021: 0.50% to 4.00%).
(i) As at December 31, 2022, no bank guarantee loan (as at December 31, 2021: USD 71,400,000, equivalent to RMB
456,337,004) was the bank loans borrowed by the subsidiaries of the Company, which was guaranteed by the letter of
guarantee issued by the bank for the Company within the scope of credit.
127
33 Held-for-trading financial liabilities
□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, 2022 December 31, 2021
Commercial acceptance bill
Bank acceptance bill 5,401,258,897 4,160,666,800
Total 5,401,258,897 4,160,666,800
The total amount of notes payable due and unpaid at the end of the period was RMB 0.
36 Accounts payable
(1) Presentation of accounts payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Payables for material purchase and product
6,615,263,016 6,512,175,879
manufacturing
Quality guarantee deposit payable 336,129,389 260,671,964
Infrastructure payables 168,623,915 65,699,129
Equipment and vessel purchase payables 130,110,242 123,908,832
Port charge payable 4,996,772 4,016,835
Total 7,255,123,334 6,966,472,639
(2) Important accounts payable aging over 1 year
□Applicable √Not applicable
Other description
√Applicable □Not applicable
2022 2021
Proportion in total Proportion in total
Amount Amount
amount% amount%
Within 1 year 5,406,703,068 75 5,529,688,500 79
Over 1 year 1,848,420,266 25 1,436,784,139 21
Total 7,255,123,334 100 6,966,472,639 100
As at December 31, 2022, the accounts payable with the aging over 1 year were mainly the payables for imported parts,
which had not been taken for final settlement.
128
2022
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
Other description
□Applicable √Not applicable
38 Contract liabilities
(1) Particulars about contract liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Advances from customers for goods 12,890,180,046 12,009,937,041
Amount settled for uncompleted work 457,970,151 376,205,787
Total 13,348,150,197 12,386,142,828
(2) Amount of and reason for significant changes in book value during the reporting period
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
39 Payroll payable
(1) Presentation of payroll payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31, 2021 December 31, 2022
period period
I. Short-term compensation 35,641,840 2,096,153,363 2,093,721,049 38,074,154
II. Post-employment benefits -
329,794,546 329,794,546
defined contribution plans
III. Dismissal benefits
IV. Other benefits due within
one year
Total 35,641,840 2,425,947,909 2,423,515,595 38,074,154
(2) Presentation of short-term compensation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31, 2021 December 31, 2022
period period
I. Salaries, bonuses, allowances
1,700,186,517 1,700,186,517
and subsidies
II. Employee welfare 63,801,504 63,801,504
III. Social insurance premium 144,238,151 144,238,151
Including: medical insurance
124,918,159 124,918,159
premium
Work-related injury insurance
8,842,900 8,842,900
premium
Maternity insurance premium 10,477,092 10,477,092
129
Increase in current Decrease in current
Item December 31, 2021 December 31, 2022
period period
IV. Housing provident funds 4,880 147,061,035 147,059,839 6,076
V. Union expenditures and
35,636,960 22,789,722 20,358,604 38,068,078
employee education expenses
VI. Short-term paid absence 18,076,434 18,076,434
VII. Short-term profit sharing plan
Total 35,641,840 2,096,153,363 2,093,721,049 38,074,154
(3) Presentation of defined contribution plans
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in Decrease in
Item December 31, 2021 December 31, 2022
current period current period
1. Basic endowment insurance premium 216,990,513 216,990,513
2. Unemployment insurance premium 9,824,015 9,824,015
3. Enterprise annuity payment
4. Supplementary endowment insurance
102,980,018 102,980,018
premium
Total 329,794,546 329,794,546
Other description:
□Applicable √Not applicable
40 Tax payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
VAT 68,911,314 48,774,672
Consumption tax
Sales tax
Enterprise income tax 64,624,716 73,524,769
Individual income tax 21,435,047 16,587,733
Urban maintenance and construction tax 33,026,021 2,122,019
Education surtax 24,265,964 1,811,882
Others 25,840,813 25,006,313
Total 238,103,875 167,827,388
Other description:
None
41 Other payables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Interest payable
Dividends payable 6,593 6,593
Other payables 1,314,681,722 409,521,052
Total 1,314,688,315 409,527,645
130
2022
Other description:
□Applicable √Not applicable
Interest payable
(1) Presentation by category
□Applicable √Not applicable
Dividends payable
(2) Presentation by category
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
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 -XXX
Dividends payable - Macau Zhenhua Harbour
6,593 6,593
Construction Co., Ltd.
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, 2022, the reason for the dividend payable with the aging over 1 year amounting to RMB 6,593 (as
at December 31, 2021: RMB 6,593) was that the shareholders of the Company had not requested for actual payment by the
Group.
Other payables
(1) Other payables presented by nature
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Customer collection under asset-backed special
611,100,377
program
Engineering deposit and quality guarantee deposit 355,583,851 216,019,465
Amounts due to related parties 14,907,689 49,460,264
Special payables 14,963,440 14,963,440
Others 318,126,365 129,077,883
Total 1,314,681,722 409,521,052
(2) Important other payables with the aging over 1 year
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Aging analysis of other payables is as follows:
2022 2021
Amount Proportion % Amount Proportion %
Within 1 year 1,202,456,256 91 291,728,351 71
Over 1 year 112,225,466 9 117,792,701 29
Total 1,314,681,722 100 409,521,052 100
131
As at December 31, 2022, the other payables with the aging over 1 year were mainly the payable deposit and quality
guarantee deposit collected from outsourcing engineering team and payables to related party.
42 Liabilities held for sale
□Applicable √Not applicable
43 Non-current liabilities due within one year
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Long-term borrowings due within one year 6,543,553,353 2,167,862,626
Bonds payable due within one year
Long-term payables due within one year 413,188,297 349,112,204
Lease liabilities due within one year 4,703,568 6,989,188
Total 6,961,445,218 2,523,964,018
Other description:
None
44 Other current liabilities
Other current liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Short-term bonds payable
Refund payable
Non-public targeted debt financing instruments
Total
Increase or decrease of short-term bonds payable:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Interest Amortization
Par Issue Bond Issue December Current Current December
Name of bond accrued at of premium
value date duration amount 31, 2021 issue repayment 31, 2022
par value and discount
ZPMC 2022
private
Sept. 20,
placement of 100 3 months 500,000,000 500,000,000 2,405,000 502,405,000
2022
corporate bonds
(series 1)
Total / / / 500,000,000 500,000,000 2,405,000 502,405,000
Other description:
□Applicable √Not applicable
132
2022
45 Long-term borrowings
(1) Classification of long-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Pledged borrowings 2,469,639,584 2,397,403,882
Mortgage borrowings
Guaranteed borrowings 319,142,716
Fiduciary borrowings 25,093,486,415 24,395,076,983
Less: Long-term borrowings due within one year
Fiduciary borrowings -6,152,492,930 -1,844,901,411
Guaranteed borrowings
Pledged borrowings -391,060,423 -322,961,215
Total 21,019,572,646 24,943,760,955
Description of the classification of long-term borrowings:
None
Other description, including interest rate range:
√Applicable □Not applicable
As at December 31, 2022, the annual interest rate on the aforesaid borrowings ranges from 1.20% to 5.46% (as at
December 31, 2021: 1.20% to 5.46%).
(i) As at December 31, 2022, the loan without bank guarantee (as at December 31, 2021: USD 50,000,000, equivalent
to RMB 319,142,716) was the bank loan borrowed by the Company's subsidiary Shanghai Zhenhua Port Machinery (Hong
Kong) Co., Ltd. and the guarantee was provided by the Company.
As of December 31, 2022 and December 31, 2021, there were no bank guarantee loans due within one year.
(ii) As at December 31, 2022, the total amount of multiple pledged loans amounting to RMB 2,469,639,584 (as at
December 31, 2021: RMB 2,397,403,882) took the long-term accounts receivable, other non-current assets, contract assets
and accounts receivable of the “building-transfer” project of the Group as pledge. See VII (16), VII (31), VII (10) and VII (5).
The interest shall be paid quarterly, and the principal shall be repaid between June 15, 2023 and August 27, 2033 (as at
December 31, 2021: the principal shall be repaid between June 15, 2022 and August 27, 2033).
46 Bonds payable
(1) Bonds payable
□Applicable √Not applicable
(2) Increase or decrease of bonds payable: (excluding preferred shares, perpetual bonds and other financial instruments
classified as financial liabilities)
□Applicable √Not applicable
(3) Conditions and time for conversion of convertible bonds
□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
133
47 Lease liabilities
√Applicable □Not applicable
Item December 31, 2022 December 31, 2021
Buildings and constructions 11,634,161 5,501,307
Other equipment 746,114 2,224,505
Less: Lease liabilities due within one year
Buildings and constructions -3,996,022 -5,451,439
Other equipment -707,546 -1,537,749
Total 7,676,707 736,624
Other description:
None
48 Long-term payables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Long-term payables 1,931,340,734 2,163,591,149
Special payables
Total 1,931,340,734 2,163,591,149
Other description:
√Applicable □Not applicable
Item 2022 2021
Leaseback financing fund (i) 1,658,661,470 1,778,490,134
Ship purchase payable 208,938,000 369,790,600
“Building - transfer” and PPP project fund (ii) 243,811,149 219,719,005
Project quality guarantee deposit 233,118,412 144,703,614
Less: Leaseback financing fund due within one year (413,188,297) (349,112,204)
Total 1,931,340,734 2,163,591,149
(i) As at December 31, 2022, the long-term payables of RMB 1,658,661,470 (as at December 31, 2021: RMB
1,778,490,134) were obtained from the vessel (Note V (21)) with the book value of RMB 2,463,807,041 (as at December 31,
2021: RMB 4,025,131,400) in leaseback way from the financial leasing company, with the maturity date from January 24,
2023 to July 24, 2033 (as at December 31, 2021: from January 24, 2022 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
134
2022
49 Long-term payroll payable
□Applicable √Not applicable
50 Estimated liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2021 December 31, 2022 Causes
External guarantee
Pending litigation
Product quality guarantee deposit
Restructuring obligations
Loss contracts to be executed
Refund payable
Others
Estimated after-sale service cost 188,005,742 168,241,316
Total 188,005,742 168,241,316 /
Other description, including relevant important assumptions and estimates of important estimated liabilities:
None
51 Deferred income
Deferred income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in Decrease in
Item December 31, 2021 December 31, 2022 Causes
current period current period
Government subsidies 353,906,763 50,567,056 105,971,640 298,502,179
Land compensation 34,917,201 1,000,000 33,917,201
Total 388,823,964 50,567,056 106,971,640 332,419,380 /
Items involved in government subsidies:
√Applicable □Not applicable
Unit: Yuan Currency:CNY
Amount
New Amount
included Assets
subsidy included in
December in other Other December related /
Liability item amount non-operating
31, 2021 income changes 31, 2022 income
in current income in
in current related
period current period
period
Income
Hoisting and pipe laying ship R&D project 47,450,000 47,450,000
related
Income
Automated dock R&D project 28,050,000 28,050,000
related
Offshore deep-water environmental
Income
protection intelligent fishing ground 20,000,000 20,000,000
related
construction project in Fujian
Research on the technology and
Income
application of marine environmental 15,030,000 15,030,000
related
protection coatings
Intelligent manufacturing workshop for Income
14,171,796 14,171,796
crane box of automated terminal related
135
Amount
New Amount
included Assets
subsidy included in
December in other Other December related /
Liability item amount non-operating
31, 2021 income changes 31, 2022 income
in current income in
in current related
period current period
period
Construction and demonstration application
Income
of green supply chain standard system for 13,500,000 13,500,000
related
intelligent large port complete equipment
High skill training facilities and equipment Income
10,964,700 10,964,700
funding project related
Income
10,000t semi-submerged ship R&D project 11,386,667 560,000 10,826,667
related
Transportation emplacement system R&D Income
10,000,000 10,000,000
project related
Comprehensive standardization of
Income
intelligent manufacturing of marine 11,700,000 4,700,000 7,000,000
related
engineering equipment
Research and demonstration project of
Income
crane boom structure and its test with low 15,200,000 13,516,000 1,684,000
related
cost and large bearing capacity at sea
Key technology research project of
Income
bottom-supported offshore wind power 12,400,000 4,000,000 15,500,000 900,000
related
installation platform
Income
Others 144,053,600 46,567,056 64,910,640 6,785,000 118,925,016
related
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, 2022 December 31, 2021
Contract liabilities
Output tax to be carried forward 181,805,207 292,297,881
Total 181,805,207 292,297,881
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, Conversion
New shares Share December 31,
2021 of reserves Others Sub-total
issued donation 2022
into share
Total shares 5,268,353,501 5,268,353,501
136
2022
Other description:
2022
Increase/decrease in the current year
Ending
Beginning balance New shares Stock Common reserves
Other Sub-total balance
issued dividend capitalizing
Shares without
trading limited
conditions
- RMB ordinary
3,321,997,661 - - - - - 3,321,997,661
shares
- Foreign shares
1,946,355,840 - - - - - 1,946,355,840
listed domestically
Total 5,268,353,501 - - - - - 5,268,353,501
2021
Increase/decrease in the current year
Ending
Beginning balance New shares Stock Common reserves
Other Sub-total balance
issued dividend capitalizing
Shares without
trading limited
conditions
- RMB ordinary
3,321,997,661 - - - - - 3,321,997,661
shares
- Foreign shares
1,946,355,840 - - - - - 1,946,355,840
listed 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
As of December 31, 2022, the details of the Group’s outstanding perpetual bonds are as follows:
Date of Accounting Interest Issue Maturity or
Number Amount
issue classification rate price renewal
Perpetual medium-term
notes
Shanghai Zhenhua Heavy
Industries Co., Ltd. 2022
Aug. 24, Equity
medium-term notes series I 3.22% 100 5,000,000 500,000,000 Undue
2022 instrument
(22 ZPMC MTN001 (sci-tech
innovation note))
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.
137
(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
Decrease in current
Outstanding financial Beginning Increase in current period Ending
period
instruments
Amount Book value Amount Book value Amount Book value Amount Book value
Shanghai Zhenhua Heavy
Industries Co., Ltd. 2022 5,000,000 500,000,000 5,000,000 500,000,000
medium-term notes series I
Shanghai Zhenhua Heavy
Industries Co., Ltd. 2020 5,000,000 500,000,000 5,000,000 500,000,000
medium-term notes series 2
Total 5,000,000 500,000,000 5,000,000 500,000,000 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
55 Capital reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, Increase in Decrease in December 31,
Item
2021 current period current period 2022
Capital premium (Share capital premium) 4,537,774,553 4,537,774,553
Other capital reserves
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
185,934,674 185,934,674
subsidiaries
Transfer-in of capital reserves under the original system 128,059,561 128,059,561
Total 4,842,515,715 4,842,515,715
Other description, including the increase and decrease in the current period and the reasons for changes:
None
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 included
previously included Attributable
December 31, in the other Attributable December
Item in the other Less: to the
2021 Pre-tax comprehensive to the parent 31, 2022
comprehensive income minority
amount income and company
income and tax equity after
currently after tax
currently transferred tax
transferred to the
to retained earnings
profit or loss
I. Other
comprehensive
income that can’t -10,206,996 7,195,574 1,079,337 6,116,237 -4,090,759
be reclassified into
profit and loss
138
2022
Amount incurred in the current period
Less: amount
Less: amount
previously included
previously included Attributable
December 31, in the other Attributable December
Item in the other Less: to the
2021 Pre-tax comprehensive to the parent 31, 2022
comprehensive income minority
amount income and company
income and tax equity after
currently after tax
currently transferred tax
transferred to the
to retained earnings
profit or 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 instrument -10,206,996 7,195,574 1,079,337 6,116,237 -4,090,759
investments
Fair value change of
enterprise credit risks
II. Other
comprehensive
income that will be -59,148,062 116,050,333 88,104,808 27,945,525 28,956,746
reclassified into
profit and loss
Including: Other
comprehensive
income that will be
-27,256,957 20,743,893 20,743,893 -6,513,064
reclassified into profit
and loss under 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 -31,891,105 95,306,440 67,360,915 27,945,525 35,469,810
Total other
comprehensive -69,355,058 123,245,907 1,079,337 94,221,045 27,945,525 24,865,987
income
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
Increase in current Decrease in current
Item December 31, 2021 December 31, 2022
period period
Work safety expenses 1,934,676 50,813,289 49,802,405 2,945,560
Total 1,934,676 50,813,289 49,802,405 2,945,560
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.
139
59 Surplus reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31, 2021 December 31, 2022
period period
Statutory surplus reserves 1,386,879,828 24,660,180 1,411,540,008
Discretionary surplus reserves 292,378,668 292,378,668
Reserve fund
Enterprise development fund
Others
Total 1,679,258,496 24,660,180 1,703,918,676
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 24,660,180 in 2022 (2021: RMB 27,839,949).
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 2,767,511,301 2,377,187,005
Total undistributed profits at the beginning of the adjustment period
(increase +, decrease -)
Undistributed profits at the beginning of the period after adjustment 2,767,511,301 2,377,187,005
Plus: Net profit attributable to owners of the parent company 371,937,232 439,839,245
Less: withdrawal of statutory surplus reserves 24,660,180 27,839,949
Withdrawal of discretionary surplus reserve
Withdrawal of general risk preparation
Common stock dividends payable 263,417,675
Common stock dividends converted to share capital
Distribution of interest on the perpetual medium-term notes 25,500,000 21,675,000
Undistributed profits at the end of the period 2,825,870,678 2,767,511,301
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.
140
2022
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 30,025,614,821 26,014,865,348 25,663,919,104 23,345,388,234
Other business 166,178,166 130,566,638 314,057,864 152,882,799
Total 30,191,792,987 26,145,431,986 25,977,976,968 23,498,271,033
(2) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Classification of Contract XXX-Division Total
Type of goods
Port machinery 20,731,800,489
Heavy equipment 3,085,509,098
Steel structures and related revenue 2,731,132,322
Shipping and lifting services 1,719,708,160
Engineering construction projects 1,613,996,721
Sales of materials and others 83,685,678
By region of operation
Chinese Mainland 15,932,043,007
Asia (excluding Chinese Mainland) 7,726,392,023
North America 2,181,504,594
Africa 1,368,578,664
Chinese Mainland (export sales) 968,104,389
Europe 877,042,956
South America 600,144,518
Oceania 312,022,317
Market or customer type
Contract type
Revenue recognized at a certain point of time
Port machinery 19,833,964,539
Heavy equipment 1,342,286,476
Steel structure and related income 971,028,587
Lifting services 474,256,544
Sales of materials and others 83,685,678
Revenue recognized in a certain period of time
Steel structure and related income 1,760,103,735
Heavy equipment 1,743,222,622
Engineering construction projects 1,613,996,721
Shipping 1,245,451,615
Port machinery 897,835,951
By time of goods transfer
By contract term
By sales channel
Total 29,965,832,468
Description of income from contracts:
□Applicable √Not applicable
141
(3) Performance obligations
√Applicable □Not applicable
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 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.
(4) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
None
62 Taxes and surcharges
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Consumption tax
Sales tax
Urban maintenance and construction tax 45,473,679 11,608,540
Educational surtax 34,681,141 9,664,810
Resource tax
Housing property tax 46,741,623 46,626,294
Land use tax 18,768,826 17,544,472
Vehicle and vessel use tax
Stamp duty 26,389,258 21,588,309
Others 2,704,930 1,146,992
Total 174,759,457 108,179,417
Other description:
None
142
2022
63 Selling and distribution expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensation 145,325,870 84,827,601
Travel expenses 9,827,870 10,332,549
Office expenses 6,200,198 3,851,601
Advertising and publicity costs 3,795,628 3,234,400
Bidding and tendering expenses 2,796,037 2,515,560
Sales and service fees 1,811,427 2,604,221
Exhibition fees 60,839 1,824,011
Other 6,987,795 6,157,495
Total 176,805,664 115,347,438
Other description:
None
64 General and administrative expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensation 422,344,628 409,259,779
Amortization of intangible assets 90,354,954 94,839,145
Depreciation of fixed assets 62,513,546 71,705,340
Office expenses 58,616,600 57,743,890
Expenses from employment of intermediaries 42,781,830 40,622,616
Management and security fees 23,089,221 23,030,325
Travel expenses 20,418,253 39,385,590
Informatization expenses 16,683,023 15,149,594
Management and cleaning fees 15,760,356 17,126,611
Consulting fees 9,903,413 15,042,753
Insurance expenses 6,053,437 6,821,519
Entertainment expenses 5,927,002 8,646,106
Maintenance cost 3,518,407 10,539,953
Others 57,725,498 59,282,308
Total 835,690,168 869,195,529
Other description:
None
143
65 Research and development expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensation 560,361,835 406,651,236
Materials expenses 300,416,273 209,143,216
Processing expenses 144,441,413 142,377,157
Depreciation expenses 85,911,765 78,571,508
Product design expenses 126,214 1,803,008
Others 27,079,591 44,608,097
Total 1,118,337,091 883,154,222
Other description:
None
66 Financial expenses
√Applicable □Not applicable
Unit: Yuan Currency:CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Interest expenses 1,083,262,216 1,173,353,036
Less: Capitalized amount of interest 44,941,151 78,901,554
Less: interest income 413,595,714 356,324,952
Exchange losses/gains 98,700,929 -108,524,119
Others 51,653,597 34,225,111
Total 775,079,877 663,827,522
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
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Fiscal appropriation 75,734,113 54,401,334
Technological subsidy 23,979,691 17,284,346
Fiscal appropriation 3,300,400 3,300,400
Land compensation 1,000,000 1,000,000
Total 104,014,204 75,986,080
Other description:
None
144
2022
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
170,402,945 237,773,613
method
Investment income from disposal of long-term equity investment -95,166 167,833,181
Investment income from held-for-trading financial assets during the
60,831,663 52,776,243
holding period
Dividend income from other equity instrument investment during
335,790 7,835,826
holding
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 5,843 819,204,693
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
Investment income from disposal of other non-current financial
1,050,134
assets investment
Losses on derecognition of financial assets measured at amortized
-20,135,378
cost
Others -6,986,339
Total 204,359,358 1,286,473,690
Other description:
None
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 Amount incurred in the
Sources of income from fair value change
current period previous period
Held-for-trading financial assets
Including: income from fair value change of derivative financial
instruments
Including: Stock investment of listed companies -276,050,580 -249,220,046
Held-for-trading financial liabilities
Investment property measured at fair value
Other non-current financial assets 13,307,209
Total -276,050,580 -235,912,837
Other description:
None
145
71 Credit impairment loss
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Loss on bad debts of notes receivable
Loss on bad debts of accounts receivable 322,159,775 154,045,684
Loss on bad debts of other receivables 23,996,659 1,516,202
Loss on impairment of debt investment
Loss on impairment of other debt investment
Loss on bad debts of long-term receivables
Loss on impairment of contract assets
Total 346,156,434 155,561,886
Other description:
None
72 Assets impairment losses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
I. Bad debt loss
II. Loss on price falling of inventory and impairment loss of contract
82,677,874 253,395,139
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
XIII. Impairment loss of contract assets 9,832,764 40,784,984
Total 92,510,638 294,180,123
Other description:
None
73 Income from disposal of assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from disposal of fixed assets 66,186,622 71,278,254
Total 66,186,622 71,278,254
146
2022
Other description:
None
74 Non-operating income
Non-operating income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount Amount included in
Amount incurred in the
Item incurred in the non-recurring profit or
current period
previous period 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 subsidies 2,401,743 5,167,126 2,401,743
Revenue from insurance indemnity 6,501,309 787,337 6,501,309
Amercement gains 9,835,517 9,717,580 9,835,517
Others 13,401,038 10,995,144 13,401,038
Total 32,139,607 26,667,187 32,139,607
Government subsidies included in current profit or loss
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
75 Non-operating expenditure
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount included in
Amount incurred in the Amount incurred in the
Item non-recurring profit or
current period previous period
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 385,000 404,437 385,000
Overdue fine payment 1,551,733 638,624 1,551,733
Others 499,362 3,816,232 499,362
Loss on debt restructuring 4,551,760
Total 2,436,095 9,411,053 2,436,095
147
Other description:
Supplementary information on the classification by nature of the operating costs, selling and distribution expenses,
general and administrative expenses, and research and development expenses of the Group is as follows:
2022 2021
Used raw materials and low-cost consumables 22,527,830,427 20,021,857,825
Employee compensation (Note VII (39)) 2,425,947,909 2,205,176,153
Outsourcing expenses 1,379,194,069 1,476,300,853
Depreciation and amortization expenses
(Note VII (20), (21), (25), (26), (29)) 1,277,984,117 1,308,249,367
Changes in goods in process and inventories -1,760,120,195 -1,704,323,646
Transportation expenses 776,733,902 596,391,014
Rental fees 296,164,078 274,193,298
On-site installation expenses 243,883,711 254,681,587
Energy cost 257,634,101 233,453,421
After-sale cost 251,168,929 179,801,690
Office expenses 64,816,798 61,595,491
Travel expenses 30,246,123 49,718,139
Expenses from employment of intermediaries 42,781,830 40,622,616
Informatization expenses 16,683,023 15,149,594
Entertainment expenses 5,927,002 8,646,106
Bidding and tendering expenses 2,796,037 2,515,560
Other expenses 436,593,048 341,939,154
Total 28,276,264,909 25,365,968,222
76 Income tax expenses
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Current income tax expenses 130,622,921 124,422,021
Deferred income tax expenses -72,950,481 -47,426,479
Total 57,672,440 76,995,542
(2) Accounting profit and income tax expenses adjustment process
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period
Total profits 655,234,788
The income tax expenses calculated based on statutory/applicable tax rates 98,285,218
Influences caused by different tax rates adopted by subsidiaries 44,206,773
Influences caused by adjustment on income tax of previous periods
Influences on non-taxable income
Influences caused by non-deductible cost, expenses and losses 2,798,845
Influences caused by non-confirmation of deductible losses of deferred income tax assets -46,307,679
148
2022
Item Amount incurred in the current period
Influences caused by non-confirmation of deductible temporary differences or deductible
40,642,251
losses in current period
Profit or loss attributable to joint ventures and associates -25,560,442
Tax-free income -9,175,994
Adjustment to final settlement in previous years 4,272,302
Additional deduction of technological development expenses -51,488,834
Income tax expenses 57,672,440
Other description:
□Applicable √Not applicable
77 Other comprehensive income
√Applicable □Not applicable
See Note VII (57) for details.
78 Cash flow statement items
(1) Other cash received related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency:CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Customs deposit recovered 155,522,957 186,204,657
Cash received from government subsidies and rewards 70,312,363 86,931,169
Employee loan recovered 1,559,111 5,302,967
Cash received from the revenue from fines 9,835,517 9,717,580
Others 6,773,148 20,194,931
Total 244,003,096 308,351,304
Description of other cash received related to operating activities:
None
(2) Other cash paid related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Customs deposit paid 361,009,064 214,376,861
Expenditures on selling and distribution expenses, general and
294,392,928 284,557,883
administrative expenses, and research and development expenses
Financial expenses and handling charges 51,626,667 34,225,153
Subsidy for research and development paid to cooperative units 20,301,000 5,710,000
Others 69,972,683 22,190,853
Total 797,302,342 561,060,750
Description of other cash paid related to operating activities:
None
149
(3) Other cash received related to investing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Interest income 209,457,444 425,449,726
Total 209,457,444 425,449,726
Description of other cash received related to investing activities:
None
(4) Other cash paid related to investing activities
□Applicable √Not applicable
(5) Other cash received related to financing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Customer collection received under the asset-backed special
program
Restricted bank deposits recovered 2,310,473 208,159,986
Leaseback payments received 4,696,898 901,819,520
Others 611,100,377 200,000,000
Total 618,107,748 1,309,979,506
Description of other cash received related to financing activities:
None
(6) Other cash paid related to financing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Principal of perpetual bond repaid 500,000,000
Related-party loan repaid 223,206,280 513,656,424
Third-party loan repaid 98,957,097 282,772,621
Deposited restricted monetary funds 4,973,788 207,726,213
Rental paid
Disinvestment by minority shareholders
Others 11,207,706 14,651,429
Total 838,344,871 1,018,806,687
Description of other cash paid related to financing activities:
None
150
2022
79 Further information on cash flow statement
(1) Further information on cash flow statement
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Further information Current amount Previous amount
1. Reconciliation from net profits to cash flows from operating activities:
Net profit 597,562,348 528,345,577
Plus: provision for impairment of assets 92,510,638 294,180,123
Credit impairment loss 346,156,434 155,561,886
Depreciation of fixed assets, oil and gas assets and productive
1,173,015,684 1,201,761,933
biological assets
Amortization of right-of-use assets 11,582,968 11,440,962
Amortization of intangible assets 93,385,465 95,046,472
Amortization of long-term deferred expenses
Losses on disposal of fixed assets, intangible assets and other long-
-66,186,622 -71,278,254
term assets (gains expressed with “-”)
Loss on retirement of fixed assets (gains expressed with “-”)
Loss from fair value change (gains expressed with “-”) 276,050,580 235,912,837
Financial expenses (gains expressed with “-”) 488,026,167 706,501,743
Investment losses (gains expressed with “-”) -231,481,075 -1,286,473,690
Decrease in deferred income tax assets (increase expressed with “-”) -94,235,777 -16,920,002
Increase in deferred income tax liabilities (decrease expressed with “-”) 21,285,296 -30,506,477
Decrease in inventories (increase expressed with “-”) -1,108,554,285 -502,309,148
Increase in construction contract payment -1,678,870,361 -671,839,885
Decrease in operating receivables (increase expressed with “-”) 61,780,602 452,311,814
Increase in operating payables (decrease expressed with “-”) 2,585,383,305 1,017,905,104
Increase in special reserves (decrease expressed with “-”) 1,152,656 -1,477
Others
Net cash flow from operating activities 2,568,564,023 2,119,639,518
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 2,375,101,437 4,449,837,877
Less: Beginning balance of cash 4,449,837,877 2,897,742,340
Plus: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase of cash and cash equivalents -2,074,736,440 1,552,095,537
Endorsement transfer of notes:
2022 2021
Endorsement transfer of bank acceptance bill received from sales of
1,312,121,165 2,537,611,014
goods and rendering of services
151
(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, 2022 December 31, 2021
I. Cash 2,375,101,437 4,449,837,877
Including: cash on hand 1,027,476 851,261
Bank deposit readily available for payment 2,374,073,961 4,448,986,616
Other monetary capital readily available for payment
Deposits with central bank available for payment
Deposits in other banks
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 2,375,101,437 4,449,837,877
Including: restricted cash and cash equivalents of parent company
or subsidiaries within the Group
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 Assets with ownership or use rights restricted
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Book value at the end of the period Reason of restriction
Monetary funds 21,946,276 Remark 1
Notes receivable
Inventories
Fixed assets 2,463,807,041 Remark 2
Intangible assets
Long-term receivables 2,212,190,758 Remark 3
Other non-current assets 3,572,872,352 Remark 4
Contract assets 133,406,311 Remark 5
Accounts receivable 191,217,707 Remark 6
Total 8,595,440,445 /
152
2022
Other description:
Remark 1: As at December 31, 2022, other monetary funds, including the restricted monetary fund of RMB 21,946,276
(as at December 31, 2021: RMB 121,999,707), were the special payment collected for overseas project and deposited in
overseas supervision account and the margin deposit deposited by the Group for applying to the bank for letter of credit and
bank guarantee.
Remark 2: As at December 31, 2022, the vessel with the book value of RMB 2,463,807,041 (as at December 31,
2021: RMB 4,025,131,400) had been used for leaseback with the financial leasing company, with the financing term of 3 - 12
years.
Remark 3: As at December 31, 2022, the long-term receivables of “building-transfer” project with the book value of
RMB 2,212,190,758 (as at December 31, 2021: RMB 2,177,499,634) were used as the pledge for obtaining bank loans.
Remark 4: As at December 31, 2022, the other non-current assets with the book value of RMB 3,572,872,352 (as at
December 31, 2021: RMB 2,827,154,241) were used as the pledge for obtaining bank loans
Remark 5: As at December 31, 2022, the contract assets with the book value of RMB 133,406,311 (as at December 31,
2021: RMB 38,384,855) were used as the pledge for obtaining bank loans.
Remark 6: As at December 31, 2022, the accounts receivable with the book value of RMB 191,217,707 (as at December
31, 2021: RMB 107,145,406) were used as the pledge for obtaining bank loans.
82 Foreign currency monetary items
(1) Foreign currency monetary items
√Applicable □Not applicable
Unit: Yuan
Ending foreign Conversion exchange Ending balance,
Item
currency balance rate converted into RMB
Monetary fund - -
Including: USD 240,301,765 6.9646 1,673,605,673
EUR 24,975,982 7.4229 185,394,217
HKD 56,759,334 0.8933 50,703,113
INR 312,984,561 0.0842 26,353,300
ZAR 62,608,186 0.4113 25,750,747
KRW 3,940,862,456 0.0055 21,674,744
AED 5,634,424 1.8966 10,686,249
RUB 104,296,511 0.0942 9,824,731
GBP 986,603 8.3941 8,281,644
AUD 1,741,486 4.7138 8,209,017
MYR 3,363,178 1.5772 5,304,404
LKR 144,220,666 0.0192 2,769,037
SGD 319,933 5.1831 1,658,245
BRL 635,196 1.3176 836,934
SAR 259,592 1.8528 480,972
GHS 117,103 0.7143 83,647
JPY 943,800 0.0524 49,455
CAD 269 5.1385 1,382
KES 23,557 0.0565 1,331
NZD 5 4.4162 22
153
Ending foreign Conversion exchange Ending balance,
Item
currency balance rate converted into RMB
Accounts receivable - -
Including: USD 378,737,037 6.9646 2,637,751,968
EUR 91,107,397 7.4229 676,281,097
RUB 1,348,514,346 0.0942 127,030,051
AED 44,973,436 1.8966 85,296,619
GBP 2,632,884 8.3941 22,100,692
QAR 11,518,555 1.9134 22,039,603
CAD 4,160,024 5.1385 21,376,283
MYR 9,051,664 1.5772 14,276,284
HKD 15,671,096 0.8933 13,998,990
SAR 6,088,598 1.8528 11,280,954
INR 132,339,231 0.0842 11,142,963
KRW 1,942,230,672 0.0055 10,682,269
ZAR 23,690,509 0.4113 9,743,906
SGD 1,288,756 5.1831 6,679,751
LKR 293,553,782 0.0192 5,636,233
BRL 3,740,152 1.3176 4,928,024
AUD 418,635 4.7138 1,973,362
Other receivables - -
Including: USD 7,958,349 6.9646 55,426,717
RUB 72,691,584 0.0942 6,847,547
ZAR 14,204,895 0.4113 5,842,473
EUR 496,746 7.4229 3,687,296
KRW 526,411,482 0.0055 2,895,263
AUD 293,747 4.7138 1,384,665
LKR 52,184,502 0.0192 1,001,942
INR 9,196,362 0.0842 774,334
HKD 645,811 0.8933 576,903
OMR 4,648 18.0889 84,077
BRL 51,323 1.3176 67,623
Accounts payable - -
Including: USD 137,860,276 6.9646 960,141,678
EUR 43,662,175 7.4229 324,099,959
GBP 1,903,783 8.3941 15,980,545
RUB 105,891,452 0.0942 9,974,975
SGD 1,762,124 5.1831 9,133,265
INR 103,176,134 0.0842 8,687,430
HKD 8,746,276 0.8933 7,813,048
ZAR 11,759,081 0.4113 4,836,510
KRW 644,181,785 0.0055 3,543,000
JPY 15,140,380 0.0524 793,356
BRL 495,255 1.3176 652,548
LKR 21,304,069 0.0192 409,038
CAD 22,295 5.1385 114,563
AUD 19,149 4.7138 90,265
Other payables - -
Including: EUR 9,016,081 7.4229 66,925,468
USD 4,241,032 6.9646 29,537,091
KRW 589,480,417 0.0055 3,242,142
SGD 390,657 5.1831 2,024,814
LKR 96,170,803 0.0192 1,846,479
GBP 212,156 8.3941 1,780,859
ZAR 1,987,025 0.4113 817,263
INR 678,916 0.0842 57,165
HKD 15,261 0.8933 13,633
154
2022
Ending foreign Conversion exchange Ending balance,
Item
currency balance rate converted into RMB
Short-term borrowings
Including: EUR 50,550,000 7.4229 375,227,595
Long-term payables due within one year - -
Including: USD 52,531,835 6.9646 365,863,218
Long-term payables - -
Including: USD 204,011,087 6.9646 1,420,855,617
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
None
83 Hedging
□Applicable √Not applicable
84 Government subsidies
(1) Basic information of government subsidies
□Applicable √Not applicable
(2) Return of government subsidies
□Applicable √Not applicable
Other description:
None
85 Others
□Applicable √Not applicable
VIII. 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 is loss of control over subsidiaries on a single disposal
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
155
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
IX. Interests in other entities
1 Interests in subsidiaries
(1) Subsidiaries of the Group:
√Applicable □Not applicable
Shareholding ratio (%) Way of
Name of subsidiary Principal place of business Registration place Business nature
Direct Indirect acquisition
Shanghai Zhenhua Port Machinery Heavy Chongming, Machine Establishment by
Chongming, Shanghai 94.76% 0.00%
Industries Co., Ltd. Shanghai manufacturing investing
Shanghai Zhenhua Port Machinery (Hong Establishment by
Hong Kong Hong Kong Shipping 100% 0.00%
Kong) Co., Ltd. investing
Pudong New Area, Establishment by
Shanghai Zhenhua Shipping Co., Ltd. Pudong New Area, Shanghai Shipping 55.00% 0.00%
Shanghai investing
Nantong Zhenhua Heavy Equipment Nantong City, Machine Establishment by
Nantong City, Jiangsu Province 100.00% 0.00%
Manufacturing Co., Ltd. Jiangsu Province manufacturing investing
ZPMC Transmission Machinery (Nantong) Nantong City, Machine Establishment by
Nantong City, Jiangsu Province 50.75% 0.00%
Co., Ltd. Jiangsu Province manufacturing investing
Electric equipment
Pudong New Area, Establishment by
ZPMC Electric Co., Ltd. Pudong New Area, Shanghai research and 100.00% 0.00%
Shanghai investing
development
Shanghai Zhenhua Ocean Engineering Yangshan Bonded Port Area, Yangshan Bonded Establishment by
Shipping 100.00% 0.00%
Service Co., Ltd Shanghai Port Area, Shanghai investing
ZPMC Machinery Equipment Services Co., Pudong New Area, Technical Establishment by
Pudong New Area, Shanghai 100.00% 0.00%
Ltd. Shanghai consultancy investing
Rotterdam, Establishment by
ZPMC Netherlands Coperatie U.A. Rotterdam, Netherlands Trade sales 100.00% 0.00%
Netherlands investing
Rotterdam, Establishment by
ZPMC Netherlands B.V. Rotterdam, Netherlands Trade sales 100.00% 0.00%
Netherlands investing
Business
Rotterdam, Machine combination not
Verspannen B.V. Rotterdam, Netherlands 0.00% 100.00%
Netherlands manufacturing under common
control
Establishment by
ZPMC Espana S.L. Los Barrios, Spain Los Barrios, Spain Trade sales 0.00% 100.00%
investing
Vado Ligure Port, Establishment by
ZPMC Italia S.r.l. Vado Ligure Port, Italy Trade sales 0.00% 100.00%
Italy investing
Establishment by
ZPMC GmbH Hamburg Hamburg, Germany Hamburg, Germany Trade sales 100.00% 0.00%
investing
Establishment by
ZPMC Lanka Company (Private) Limited Colombo, Sri Lanka Colombo, Sri Lanka Trade sales 70.00% 0.00%
investing
Establishment by
ZPMC North America Inc. Delaware, USA Delaware, USA Trade sales 100.00% 0.00%
investing
Establishment by
ZPMC Korea Co., Ltd. Pusan, Korea Pusan, Korea Trade sales 100.00% 0.00%
investing
Kwazulu-Natal
Kwazulu-Natal Province, Establishment by
ZPMC Engineering Africa (Pty) Ltd. Province, Republic Trade sales 100.00% 0.00%
Republic of South Africa investing
of South Africa
Maharashtra State, Establishment by
ZPMC Engineering (India) Private Limited Maharashtra State, India Trade sales 100.00% 0.00%
India investing
156
2022
Shareholding ratio (%) Way of
Name of subsidiary Principal place of business Registration place Business nature
Direct Indirect acquisition
Establishment by
ZPMC Southeast Asia Holding Pte. Ltd. Singapore Singapore Trade sales 100.00% 0.00%
investing
Establishment by
ZPMC Engineering (Malaysia) Sdn. Bhd. Malaysia Malaysia Trade sales 0.00% 70.00%
investing
New South Wales, Establishment by
ZPMC Australia Company (Pty) Ltd. New South Wales, Australia Trade sales 100.00% 0.00%
Australia investing
Business
Shanghai Zhenhua Heavy Industries Port Pudong New Area, Machine
Pudong New Area, Shanghai 100.00% 0.00% combination under
Machinery General Equipment Co., Ltd. Shanghai manufacturing
common control
Business
Shanghai Port Machinery Heavy Industry Pudong New Area, Machine
Pudong New Area, Shanghai 0.00% 74.02% combination under
Co., Ltd Shanghai manufacturing
common control
Business
ZPMC Zhangjiagang Port Machinery Co., Zhangjiagang City, Jiangsu Zhangjiagang City, Machine
90.00% 0.00% combination under
Ltd. Province Jiangsu Province manufacturing
common control
Nanjing Ninggao New Channel Construction Nanjing City, Engineering Establishment by
Nanjing City, Jiangsu Province 100.00% 0.00%
Co., Ltd Jiangsu Province construction investing
Business
Nantong City, Machine combination not
ZPMC Qidong Marine Engineering Co., Ltd. Nantong City, Jiangsu Province 67.00% 0.00%
Jiangsu Province manufacturing under common
control
Establishment by
Jiahua Shipping Co., Ltd. Hong Kong Hong Kong Shipping 0.00% 70.00%
investing
Zhenhua Pufeng Wind Energy (HongKong) Establishment by
Hong Kong Hong Kong Shipping 0.00% 51.00%
Co., Ltd. investing
Rio DE Janeiro, Establishment by
ZPMC Brazil Servio Portuários LTDA Rio DE Janeiro, Brazil Trade sales 80.00% 0.00%
Brazil investing
Establishment by
ZPMC Limited Liability Company Moscow, Russia Moscow, Russia Trade sales 85.00% 0.00%
investing
Establishment by
ZPMC NA East Coast lnc. Virginia Delaware, USA Trade sales 0.00% 100.00%
investing
CCCC Investment & Development Qidong Nantong City, Engineering Establishment by
Nantong City, Jiangsu Province 49.83% 0.00%
Co., Ltd. (Remark 1) Jiangsu Province construction investing
CCCC Liyang Urban Investment and Liyang City, Jiangsu Engineering Establishment by
Liyang City, Jiangsu Province 48.00% 0.00%
Construction Co., Ltd. (Remark 2) Province construction investing
Establishment by
ZPMC UK LD Cardiff, UK Cardiff, UK Trade sales 100.00% 0.00%
investing
Establishment by
ZPMC Middle East Fze Dubai, UAE Dubai, UAE Trade sales 100.00% 0.00%
investing
CCCC (Huaian) Construction Development Huaian City, Jiangsu Engineering Establishment by
Huaian City, Jiangsu Province 0.00% 65.00%
Co., Ltd. Province construction investing
CCCC Zhenjiang Investment Construction Zhenjiang City, Jiangsu Zhenjiang City, Engineering Establishment by
70.00% 0.00%
Management Development Co., Ltd. Province Jiangsu Province construction investing
CCCC Yongjia Construction Development Wenzhou City, Zhejiang Wenzhou City, Engineering Establishment by
80.00% 0.00%
Co., Ltd. Province Zhejiang Province construction investing
CCCC Zhenhua Lvjian Technology (Ningbo) Ningbo City, Engineering Establishment by
Ningbo City, Zhejiang Province 40.00% 0.00%
Co., Ltd. (Remark 3) Zhejiang Province construction investing
Business
Pudong New Area, combination not
ZPMC Hotel Co., Ltd. Pudong New Area, Shanghai Hotel and catering 0.00% 100.00%
Shanghai under common
control
CCCC Rudong Construction Development Rudong City, Engineering Establishment by
Rudong City, Jiangsu Province 8.04% 58.46%
Co., Ltd. Jiangsu Province construction investing
Establishment by
ZPMC Latin America Holding Corporation Panama Panama Trade sales 100.00% 0.00%
investing
Technical Establishment by
Terminexus Co., Ltd. Hong Kong Hong Kong 0.00% 100.00%
consultancy investing
157
Shareholding ratio (%) Way of
Name of subsidiary Principal place of business Registration place Business nature
Direct Indirect acquisition
Business
Greenland Heavylift (Hong Kong) Limited combination not
Hong Kong Hong Kong Shipping 0.00% 50.00%
(Remark 4) under common
control
Business
combination not
GPO Grace Limited Marshall Islands Marshall Islands Shipping 0.00% 100.00%
under common
control
Business
combination not
GPO Amethyst Limited Marshall Islands Marshall Islands Shipping 0.00% 100.00%
under common
control
Business
combination not
GPO Sapphire Limited Marshall Islands Marshall Islands Shipping 0.00% 100.00%
under common
control
Business
combination not
GPO Emerald Limited Marshall Islands Marshall Islands Shipping 0.00% 100.00%
under common
control
Business
combination not
GPO Heavylift Limited Cayman Islands Cayman Islands Shipping 0.00% 60.00%
under common
control
Business
combination not
GPO Heavylift AS Oslo, Norway Oslo, Norway Shipping 0.00% 100.00%
under common
control
Business
combination not
GPO Heavylift Pte Ltd Singapore Singapore Shipping 0.00% 100.00%
under common
control
Establishment by
ZPMC JSD 6000 (Hong Kong) Limited Hong Kong Hong Kong Shipping 0.00% 100.00%
investing
Baoding City, Hebei Establishment by
Xiong’an Zhenhua Co., Ltd. Baoding City, Hebei Province Intelligent service 100.00% 0.00%
Province investing
Maritime
ZPMC Fuzhou Offshore Construction Co., Fuzhou City, Fujian Establishment by
Fuzhou City, Fujian Province engineering 100.00% 0.00%
Ltd. Province investing
construction
CCCC (Dongming) Investment and Heze City, Engineering Establishment by
Heze City, Shandong Province 70.00% 0.00%
Construction Co., Ltd. Shandong Province construction investing
CCCC Zhenhua Intelligent Parking Hengyang City, Engineering Establishment by
Hengyang City, Hunan Province 55.00% 0.00%
(Hengyang) Co., Ltd. Hunan Province construction investing
Establishment by
Zhenhai No. 2 Drilling Limited Hong Kong Hong Kong Drilling services 0.00% 100.00%
investing
Establishment by
Zhenhai No.3 Drilling Limited Hong Kong Hong Kong Drilling services 0.00% 100.00%
investing
Establishment by
Zhenhai No. 5 Drilling Limited Hong Kong Hong Kong Drilling services 0.00% 100.00%
investing
Establishment by
Zhenhai No. 6 Drilling Limited Hong Kong Hong Kong Drilling services 0.00% 100.00%
investing
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
158
2022
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 Tianjin Dredging Co., Ltd., the Group had
obtained 95% voting power in the board of shareholders and 100% 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 right
thereof, thus, such company was included in the Group’s consolidation scope.
Remark 2: 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.
Remark 3: By signing the agreement for concerted action with CCCC Highway Consultants Co., Ltd. and CCCC
Equipment Manufacturing Marine Heavy Industry Division, the Group had obtained 50% voting power in the board of
shareholders and 60% voting power of 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 right thereof, thus, such company was included
in the Group’s consolidation scope.
Remark 4: In accordance with the acquisition agreement, the Group held two of the four seats in the board of directors
of this company, including chairman of the board. As required in the articles of association of such company, the chairman
of the board has super voting power when the voting of the board is deadlocked. In addition, Group also has the right to buy
1% equity of such company at USD 1 at any time in the future. Therefore, the Group has the substantial control over such
company, and such company was included in the Group’s consolidation scope for the financial statements.
(2) Major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Profit or loss
Shareholding Dividends declared to Balance of minority
attributable to the
Name of subsidiary ratio of minority minority shareholders shareholders' equity at
minority shareholder
shareholder in current period the end of the period
in current period
ZPMC Transmission Machinery
49.25% 59,433,790 58,000,000 829,239,431
(Nantong) Co., Ltd.
CCCC Zhenjiang Investment
Construction Management 30.00% 288,945 208,210,207
Development Co., Ltd.
Greenland Heavylift
50.00% 125,670,317 429,730,270
(HongKong) Limited
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
159
2022
Capital Special Accumulated
Shareholding Profit or loss Dividends
contributed / reserves minority
ratio of attributable to paid to
(withdrawn) withdrawn equity at the
minority the minority minority
by minority by minority end of the
shareholder shareholder shareholder
shareholde shareholder year
ZPMC Transmission
Machinery (Nantong) 49.25% - 59,433,790 (58,000,000) - 829,239,431
Co., Ltd.
CCCC Zhenjiang
Investment Construction
30.00% - 288,945 - - 208,210,207
Management
Development Co., Ltd.
Greenland Heavylift
50.00% - 125,670,317 - - 429,730,270
(HongKong) Limited
2021
Capital Special Accumulated
Shareholding Profit or loss Dividends
contributed / reserves minority
ratio of attributable to paid to
(withdrawn) withdrawn equity at the
minority the minority minority
by minority by minority end of the
shareholder shareholder shareholder
shareholde shareholder year
ZPMC Transmission
Machinery (Nantong) 49.25% - 56,584,861 (54,980,822) - 827,805,641
Co., Ltd.
CCCC Zhenjiang
Investment Construction
30.00% - 3,929,426 - - 207,921,262
Management
Development Co., Ltd.
Greenland Heavylift
50.00% - 36,540,074 (7,357,558) - 277,209,331
(HongKong) Limited
(3) Main financial information of major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022
Name of subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
CCCC Zhenjiang Investment
Construction Management 565,932,743 139,615,446 705,548,189 -11,514,162 -11,514,162
Development Co., Ltd.
Greenland Heavylift (Hong
252,929,816 2,463,909,721 2,716,839,537 -455,071,592 -1,420,855,618 -1,875,927,210
Kong) Limited
ZPMC Transmission
1,839,605,961 366,807,622 2,206,413,583 -522,208,391 -752,137 -522,960,528
Machinery (Nantong) Co., Ltd.
160
2022
December 31, 2021
Name of subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
CCCC Zhenjiang Investment
Construction Management 378,618,007 337,518,789 716,136,796 -23,065,919 -23,065,919
Development Co., Ltd.
Greenland Heavylift (Hong
239,297,217 2,452,507,301 2,691,804,518 -255,234,882 -1,890,456,264 -2,145,691,146
Kong) Limited
ZPMC Transmission
Machinery (Nantong) Co., 1,533,617,163 394,881,198 1,928,498,361 -246,864,532 -1,483,975 -248,348,507
Ltd.
Amount incurred in the current period
Name of subsidiary Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
CCCC Zhenjiang Investment Construction
963,151 963,151 -1,227,820
Management Development Co., Ltd.
Greenland Heavylift (Hong Kong) Limited 734,051,637 230,854,796 257,705,416 526,244,021
ZPMC Transmission Machinery (Nantong) Co., Ltd. 1,284,808,112 120,684,118 120,684,118 138,491,055
Amount incurred in the previous period
Name of subsidiary Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
CCCC Zhenjiang Investment Construction
13,098,086 13,098,086 -994,679
Management Development Co., Ltd.
Greenland Heavylift (Hong Kong) Limited 445,755,436 71,064,460 55,606,866 64,084,615
ZPMC Transmission Machinery (Nantong) Co., Ltd. 731,440,163 114,899,184 114,899,184 125,724,458
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
161
3 Equity in joint ventures and associates
√Applicable □Not applicable
(1) Major joint ventures or associates
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Principal Shareholding ratio (%)
Registration Accounting
Name of joint venture or associate place of Business nature
place Direct Indirect treatment
business
Joint ventures
Jiangsu Longyuan Zhenhua Marine Marine engineering
Jiangsu Nantong, Jiangsu 50.00% Equity method
Engineering Co., Ltd construction
ZPMC Mediterranean Liman Istanbul, Technical service
Istanbul, Turkey 50.00% Equity method
Makinalari Ticaret Anonim Sirketi Turkey for port equipment
Zhenhua Marine Energy (HK) Co., Ltd. Hong Kong Hong Kong Shipping 51.00% Equity method
Technical service
Cranetech Global Sdn.Bhd. Malaysia Malaysia 49.99% Equity method
for port equipment
ZPMC-OTL MARINE CONTRACTOR
Hong Kong Hong Kong Shipping 50.00% Equity method
LIMITED
Associates
Marine technology
CCCC Marine Engineering & Pudong New Area,
Shanghai development and 25.00% Equity method
Technology Research Center Co., Ltd. Shanghai
consulting
Real estate
CCCC Estate Yixing Co., Ltd. Jiangsu Wuxi, Jiangsu 20.00% Equity method
development
Changzhou,
ZPMC Changzhou Coatings Co., Ltd. Jiangsu Paint manufacture 20.00% Equity method
Jiangsu
Pudong New Area,
CCCC Financial Leasing Co., Ltd Shanghai Finance lease 9.00% Equity method
Shanghai
CCCC Yancheng Construction Engineering project
Jiangsu Yancheng, Jiangsu 25.00% Equity method
Development Co., Ltd. construction
Suzhou Chuanglian Electric Drive Co., Electric equipment
Jiangsu Suzhou, Jiangsu 20.00% Equity method
Ltd. manufacturing
Port, channel,
China Communications Construction
USA USA highway and bridge 24.00% Equity method
USA Inc.
construction
Port, channel,
CCCC South American Regional
USA USA highway and bridge 17.00% Equity method
Company SARL
construction
ZPMC Southeast Asia Pte. Ltd. Singapore Singapore Trade sales 40.00% Equity method
Shanghai Ocean Engineering Development of
Equipment Manufacturing Innovation Shanghai China ocean engineering 8.97% Equity method
Center Co., Ltd. technology
Shanghai Xingyi Construction Building
Shanghai Shanghai 30.00% Equity method
Technology Co., Ltd. engineering
CCCC Xiongan Urban Construction Engineering project
Hebei Xiongan, Hebei 15.00% Equity method
Development Co., Ltd. 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
162
2022
(2) Main financial information of major joint ventures:
□Applicable √Not applicable
(3) Main financial information of major associates:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022/Amount December 31, 2021/Amount incurred in
incurred 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 24,850,249,868 22,914,185,259
Non-current assets 29,221,247,214 28,677,031,798
Total assets 54,071,497,082 51,591,217,057
Current liabilities -20,646,954,425 -19,964,704,415
Non-current liabilities -21,547,988,147 -20,832,581,252
Total liabilities -42,194,942,572 -40,797,285,667
Minority equity 3,386,004,140 3,105,521,230
Other equity instrument - Perpetual bond 998,000,000 998,000,000
Shareholders’ equity attributable the parent company 7,492,550,370 6,690,410,160
Share of net assets held based on shareholding ratio 674,329,533 608,658,400
Adjustments
-- Goodwill
-- Unrealized profits of internal transactions
-- Others
Book value of equity investment in associates
Fair value of equity investment in associates with
674,329,533 608,658,400
public offer
Operating revenue 3,877,175,203 3,366,005,756
Financial expenses-interest income 14,910,307 18,371,285
Financial expenses - interest expenses 2,936,399 3,384,524
Income tax expenses 342,767,440 253,999,095
Net profit 1,057,340,236 748,652,808
Net profit from discontinuing operation
Net of tax of other comprehensive income 6,950,951 -1,549,636
Other comprehensive income
Total comprehensive income 1,064,291,187 747,103,172
Total comprehensive income attributable to the parent
802,140,210 565,906,200
company
Dividends distributed 115,455,199
Including: dividends distributed to investors of other
36,500,000
equity instruments
Dividends received from associates this year
Other description
None
163
(4) Summary of financial information of insignificant joint ventures and associates
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2021/Amount
December 31, 2022/Amount
incurred in the previous
incurred in the current period
period
Joint ventures:
Total book value of investment 365,964,953 324,062,553
Total number of following items by shareholding ratio
-- Net profit 76,902,400 51,800,590
-- Other comprehensive income
-- Total comprehensive income 76,902,400 51,800,590
Associates:
Total book value of investment 962,585,436 909,000,306
Total number of following items by shareholding ratio
-- Net profit 28,454,995 15,736,271
-- Other comprehensive income 20,118,310 10,843,872
-- Total comprehensive income 48,573,305 26,580,143
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
X. Risks related to financial instruments
√Applicable □Not applicable
1 Classification of financial instruments
The book values of various financial instruments on the balance sheet date:
164
2022
2022
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 - - 2,397,047,713 - - 2,397,047,713
Held-for-trading financial
877,483,342 - - - - 877,483,342
assets
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
- - 900,213,411 - - 900,213,411
within one year
Investment in other equity
- - - 73,475,619 73,475,619
instruments
Long-term receivables - - 2,402,265,565 - - 2,402,265,565
877,483,342 - 13,944,836,498 439,912,428 73,475,619 15,335,707,887
Financial liabilities
Financial liabilities measured at fair Financial liabilities
value through the current profit or loss measured at Total
Standard Designated amortized cost
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
- - 45,657,445,088 45,657,445,088
The book values of various financial instruments on the balance sheet date: (continued)
2021
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 - - 4,571,837,584 - - 4,571,837,584
Held-for-trading financial
1,153,533,922 - - - - 1,153,533,922
assets
Notes receivable - - 3,979,800 - - 3,979,800
Receivables financing - - - 245,408,260 - 245,408,260
165
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
Accounts receivable - - 6,448,850,756 - - 6,448,850,756
Other receivables - - 940,522,896 - - 940,522,896
Non-current assets due
- - 1,437,034,591 - - 1,437,034,591
within one year
Investment in other equity
- - - - 66,280,045 66,280,045
instruments
Long-term receivables - - 2,674,407,383 - - 2,674,407,383
1,153,533,922 - 16,076,633,010 245,408,260 66,280,045 17,541,855,237
Financial liabilities
Financial liabilities measured at fair Financial liabilities
value through the current profit or loss measured at amortized Total
Standard Designated cost
Short-term borrowings - - 5,977,692,367 5,977,692,367
Notes payable - - 4,160,666,800 4,160,666,800
Accounts payable - - 6,966,472,639 6,966,472,639
Other payables - - 394,564,205 394,564,205
Non-current liabilities due within one year - - 2,516,974,830 2,516,974,830
Long-term borrowings - - 24,943,760,955 24,943,760,955
Long-term payables - - 2,163,591,149 2,163,591,149
- - 47,123,722,945 47,123,722,945
2 Transfer of financial assets
Transferred financial assets derecognized as a whole but involved continuously
As at December 31, 2022, the book value of the bank acceptance bill given by the Group upon endorsement to the
supplier for accounts payable settlement amounted to RMB 574,174,330 (December 31, 2021: RMB 1,075,578,905). As
at December 31, 2022, 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 the Group
(“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 the book value of 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.
In 2022, the Group recognized the loss of RMB 759,178 on the date of transfer of the above financial assets (2021: loss
of RMB 3,407,760).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.
3 Financial instrument risks
Various financial instrument risks the Group faces during the routine activities mainly include the credit risk, liquidity
risk and market risk (including the exchange rate risk and interest rate risk). Main financial instruments of the Group include
the monetary funds, equity investment, borrowings, notes receivable, accounts receivable, accounts receivable financing,
contract assets, long-term receivables, notes payable and accounts payable.
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.
166
2022
Credit risk
The Group only trade with the authorized third 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 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. On such confirmation, the Group will consider the
reasonable and well-founded information which can be obtained without paying unnecessary surcharge or effort, including
the information on qualitative and quantitative analysis based on the Group’s historical date, external credit risk rating and
perspectiveness. Based on the individual financial instrument or portfolio of financial instruments with similar credit risk
characteristics, the Group determines the changes in default risk in financial instruments during the estimated duration by
comparing the default risks in financial instruments on the balance sheet date with those on the initial recognition date.
In case of one or more quantitative or qualitative standards, the Group will consider that the credit risk of a financial
instrument has had significant increase:
(1) The quantitative standard mainly refers to the situation that the reporting date is overdue for certain days.
(2) The qualitative standard mainly refers to the situation that the debtor encounters any significant and adverse
operating or financial change, or prepares the list of warning customers.
Definition of assets with credit impairment
In order to determine whether there is credit impairment, the Group adopts a definition standard to keep pace with the
internal credit risk management target regarding relevant financial instruments, and takes the quantitative and qualitative
indicators into account. The Group mainly considers the following factors on evaluating whether the debtor has had credit
impairment:
(1) The issuer or the debtor suffers significant financial difficulties;
(2) The debtor violates any contract, such as default or delay in repayment of interest or principal;
(3) Considering the economic or contractual reasons relevant to the debtor’s financial difficulty, the debtor makes
concession which it will not make in any other circumstance;
(4) The debtor is likely to go bankrupt or carry out other financial reorganization;
(5) The active market of such financial assets disappears due to the issuer or the debtor’s financial difficulty;
(6) A financial asset is purchased or generated through the substantial discount, and such discount reflects the fact of
credit loss.
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.
167
Relevant definitions:
(1) The probability of default refers to the probability that the debtor may fail to perform the payment obligation over the
next 12 months or the entire 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.
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.
2022
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:
Expected credit loss
Expected credit loss in the entire lifecycle
over 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
7,740,066,698 97,751,424 230,764,291 14,682,784,202 22,751,366,615
2021
Estimated credit loss
Estimated credit loss in the entire lifecycle
in future 12 months Total
Stage I Stage II Stage III Simple method
Monetary funds 4,571,837,584 - - - 4,571,837,584
Held-for-trading financial assets 1,153,533,922 - - - 1,153,533,922
Notes receivable 3,979,800 - - - 3,979,800
Accounts receivable - - - 6,448,850,756 6,448,850,756
Contract assets - - - 1,971,455,850 1,971,455,850
Receivables financing 245,408,260 - - - 245,408,260
Other receivables 665,440,431 44,318,174 230,764,291 - 940,522,896
Non-current assets due within one year 1,437,034,591 - - - 1,437,034,591
Other non-current assets - - - 3,723,160,470 3,723,160,470
Long-term receivables 2,674,407,383 - - - 2,674,407,383
10,751,641,971 44,318,174 230,764,291 12,143,467,076 23,170,191,512
168
2022
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, 2022, the various financial liabilities of the Group are listed as follows by due dates based on
undiscounted contracted cash flows (including principal and interest):
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 within one
7,108,829,479 - - - 7,108,829,479
year
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
22,893,088,000 9,657,180,606 11,943,464,990 2,926,354,584 47,420,088,180
2021
2021
Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 6,039,107,924 - - - 6,039,107,924
Notes payable 4,160,666,800 - - - 4,160,666,800
Accounts payable 6,966,472,639 - - - 6,966,472,639
Other payables 409,527,645 - - - 409,527,645
Non-current liabilities due within one
2,629,217,287 - - - 2,629,217,287
year
Long-term borrowings - 11,094,362,064 13,679,165,744 1,483,886,999 26,257,414,807
Long-term payables - 1,094,905,975 619,424,936 1,055,544,185 2,769,875,096
20,204,992,295 12,189,268,039 14,298,590,680 2,539,431,184 49,232,282,198
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,
2022, 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 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 2021 and
2022, the Group had no interest rate swap arrangement.
169
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.
2022
Base point Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase/(Decrease) income Increase/(Decrease) Increase / (Decrease)
RMB 100 (26,340,273) - (26,340,273)
RMB (100) 26,340,273 - 26,340,273
2021
Base point Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB 100 (28,254,774) - (28,254,774)
RMB (100) 28,254,774 - 28,254,774
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).
2022
USD exchange rate Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB appreciation
1% 12,823,427 - 12,823,427
against USD
RMB depreciation
-1% (12,823,427) - (12,823,427)
against USD
2021
USD exchange rate Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB appreciation
1% 13,174,484 - 13,174,484
against USD
RMB depreciation
-1% (13,174,484) - (13,174,484)
against USD
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, 2022, 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.
170
2022
The market stock indexes of the following stock exchanges at the closing of the trading day closest to the balance sheet
date, as well as their respective highest and lowest closing points in the year:
At the end of 2022 Highest / lowest in 2022 At the end of 2021 Highest / lowest in 2021
Shanghai - A-share index 3,238 3,872/3,001 3,814 3,912/3,472
Shenzhen - A-share index 2,067 2,661/1,804 2,648 2,691/2,229
Hong Kong - Hang Seng Index 19,781 25,051/14,597 23,398 31,183/22,665
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.
2022
Book value Increase / Increase / (decrease) Increase /
of equity (decrease) in net of tax of other (decrease) in total
instrument in net profit comprehensive shareholders'
investment or loss income equity
Equity instrument investment
Shanghai - equity instrument investment measured at fair
40,132,122 341,123 - 341,123
value through the current profit or loss
Shenzhen - equity instrument investment measured at fair
200,522,582 1,704,442 - 1,704,442
value through the current profit or loss
Hong Kong - equity instrument investment measured at fair
628,390,362 5,247,060 - 5,247,060
value through the current profit or loss
Investment in unlisted equity instruments measured at fair
value
- Equity instrument investment measured at fair value through
73,475,619 - 624,543 624,543
the other comprehensive income
2021
Book value Increase / Increase / (decrease) Increase /
of equity (decrease) in net of tax of other (decrease) in total
instrument in net profit comprehensive shareholders'
investment or loss income equity
Equity instrument investment
Shanghai - equity instrument investment measured at fair
72,893,037 619,591 - 619,591
value through the current profit or loss
Shenzhen - equity instrument investment measured at fair
421,346,608 3,581,446 - 3,581,446
value through the current profit or loss
Hong Kong - equity instrument investment measured at fair
650,855,999 5,434,648 - 5,434,648
value through the current profit or loss
Investment in unlisted equity instruments measured at fair
value
- Equity instrument investment measured at fair value through
66,280,045 - 563,380 563,380
the other comprehensive income
4 Capital management
The Group’s objectives of capital management policy are to safeguard the Group’s ability to continue as a going concern
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.
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.
171
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, 2022 and December 31, 2021, the debt ratio of the Group is listed as follows:
2022 2021
Debt ratio 63% 64%
XI. 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 Total
at level 1 at level 2 at level 3
I. Continuous fair value measurement
(I) Held-for-trading financial assets 869,045,064 8,438,278 877,483,342
1. Financial assets measured at fair value through the current profit or loss 869,045,064 8,438,278 877,483,342
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative financial assets 8,438,278 8,438,278
(4) Equity of listed companies 869,045,064 869,045,064
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 73,475,619 73,475,619
(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 439,912,428 439,912,428
Total assets measured with continuous fair value continuously 869,045,064 439,912,428 81,913,897 1,390,871,389
(VI) 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
172
2022
2 The basis for determining the market value of continuous and non-continuous fair value measurement items at level 1
□Applicable √Not applicable
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
The Group recognizes the date when the conversion of levels occurs as the time point of the conversion of all levels.
There was no conversion among levels in this year.
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.
Relevant information about the measurement of fair value at level 2 is as follows:
Fair value in Observable input value
Valuation technique
2022 Name Scope
Receivables financing 439,912,428 Discounted cash flow model Similar open market lending rate 4.4%
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 significant and unobservable input value of fair value measurement at Level 3 is as follows:
Unobservable input value
Fair value in
Valuation technique Weighted average/
2022 Name
scope
Held-for-trading financial assets 8,438,278 Discounted cash flow model Weighted average capital cost 11%
Market comparable Liquidity discount 28%
- equity instrument investments 73,475,619
company model P/B ratio of comparable company 1.3-2.6
5 For continuous fair value measurement items at level 3, the adjustment information between beginning and
ending book value and the sensitivity analysis of unobservable parameters
□Applicable √Not applicable
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
The management has evaluated the monetary funds, accounts receivables, notes payable and accounts payable, and
the fair value is equal to the book value due to short remaining term.
The long-term receivables of the Group are the receivables with floating rate, and the difference between the book value
and fair value is small.
173
As for the long-term borrowings and long-term payables, the book value shall be determined by the future cash flow
specified in the contract after discounting according to the interest rate which has comparable credit rating on the market and
provides almost the same cash flow under the same conditions, and the difference between the book value and such fair
value is small.
In this year, there was no transfer of fair value measurement of financial assets and financial liabilities between level 1
and level 2, and there was no transfer into or out of the level 3.
For continuous fair value measurement items at level 3, the adjustment information is as follows:
2022
Transfer Transfer Total gains or losses for the current period Assets held at the end of the year
Beginning Ending
into out of Purchase Issue Sale Settlement
balance Included in other balance Changes in unrealized gains or losses
level 3 level 3 Included in profit or loss
comprehensive income for the period included 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 -
2021
Transfer Transfer Total gains or losses for the current period Assets held at the end of the year
Beginning Ending
into out of Purchase Issue Sale Settlement
balance Included in other balance Changes in unrealized gains or losses
level 3 level 3 Included in profit or loss
comprehensive income for the period included in profit or loss
Held-for-
trading
financial
assets
Equity
instrument 8,438,278 - - - - - - - - 8,438,278 -
investments
Other equity
61,505,751 - - - 4,774,294 - - - - 66,280,045 -
instruments
Total 69,944,029 - - - 4,774,294 - - - - 74,718,323 -
XII Related parties and related party transactions
1 Parent company
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Registration Registered Shareholding ratio in Voting ratio in the
Parent company Business nature
place capital 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 subsidiaries of the Company, please refer to Note IX (1).
√Applicable □Not applicable
For details of subsidiaries, please refer to Note IX (1).
174
2022
3 Joint ventures and associates
For details of major joint ventures and associates, please refer to Note IX (2).
□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
China Communications Construction Company Ltd. Controlled by the same parent company
China Harbour Engineering Co., Ltd. Controlled by the same parent company
CCCC Finance Company 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 Construction Group Co., Ltd. (former: CCCC Fourth Highway Engineering 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 - 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 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
Zhen Hwa Harbour Construction 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
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
Shanghai China Communications Water Transportation Design & Research 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
175
Name of other related parties Relationship with related party
China Road & Bridge Corporation Controlled by the same parent company
China Highway Engineering Consultants Corporation Controlled by the same parent company
Chuwa Risheng (Beijing) International Trade Co., Ltd. Controlled by the same parent company
CCCC (Xiamen) Information Co., Ltd. Controlled by the same parent company
CCCC North Industrial Co., Ltd. Controlled by the same parent company
CCCC Highway Consultants Co., Ltd. Controlled by the same parent company
CCCC Highway Bridges National Engineering Research Centre Co., Ltd. Controlled by the same parent company
CCCC Guangzhou Dredging Co., Ltd. Controlled by the same parent company
CCCC International (Hong Kong) Holdings Limited Controlled by the same parent company
CCCC Marine Engineering & Technology Research Center Co., Ltd. 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
CCCC Infrastructure Maintenance Group Co., Ltd. Controlled by the same parent company
Road & Bridge East China Engineering Co., Ltd. Controlled by the same parent company
Road & Bridge South China Engineering Co., Ltd Controlled by the same parent company
Road & Bridge International Co., Ltd. Controlled by the same parent company
CCCC Financial Leasing (Guangzhou) Co., Ltd. Controlled by the same parent company
CCCC Financial Leasing Co., Ltd. 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 Harbor Engineering Design & Research Institute 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 Worldcom (Chongqing) Heavy Industries 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
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
No.2 Engineering 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
Tianjin International Marine Engineering Co., Ltd. (former: Binhai Environmental Protection
Controlled by the same parent company
Dredging Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.)
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 Xi’an Road Construction Machinery Co., Ltd. Controlled by the same parent company
CCCC Xingyu Technology 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
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
Harbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd. Controlled by the same parent company
176
2022
Name of other related parties Relationship with related party
DaHua Technology Co., Ltd. Controlled by the same parent company
Shanghai Donghua Construction Co., Ltd. Controlled by the same parent company
CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch Controlled by the same parent company
CCCC Dredging (Group) 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 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
Friede & Goldman, Llc. Controlled by the same parent company
CCCC (Xiamen) Information Co., Ltd. Controlled by the same parent company
China Communications Information Technology Group 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
CCCC Chenzhou Road Construction Machinery Co., Ltd. Controlled by the same parent company
SanYa Phoenix Island International Cruise Terminal Development Co., Ltd. Controlled by the same parent company
CCCC Capital Holdings Co., Ltd. Controlled by the same parent company
CCCC (Tianjin) Ecological and Environmental Protection Design Institute Co., Ltd. Controlled by the same parent company
Beijing BLDJ Landscape Architecture Institute Co., LTD. Controlled by the same parent company
Chongqing Zhongwan Expressway Co., Ltd. Controlled by the same parent company
Jiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd. Controlled by the same parent company
Sichuan Road & Bridge Group Co., Ltd. Controlled by the same parent company
CCCC (Zhengzhou) Construction Co., Ltd. Controlled by the same parent company
Tianjin Harbour Engineering Quality Inspection Center Co., Ltd. Controlled by the same parent company
CCCC Haifeng Wind Power Development Co., Ltd. Controlled by the same parent company
Airport Construction Engineering 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
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd. Controlled by the same parent company
CCCC-SHEC First 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 Railway Construction Co., Ltd. Controlled by the same parent company
CCCC Xiongan Urban Construction Development Co., Ltd. Controlled by the same parent company
CCCC Northeast Investment Co., Ltd. Controlled by the same parent company
CCCC Worldcom (Beijing) Heavy Industries Co., Ltd. Controlled by the same parent company
Xiamen Jiehang Engineering Testing Technology Co., Ltd. Controlled by the same parent company
China Highway Vehicle & Machinery Co., Ltd. Controlled by the same parent company
CCCC Leasing (Shandong) Co., Ltd. Controlled by the same parent company
CCCC Third Harbor Consultants Co., Ltd. Controlled by the same parent company
Other description
None
177
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 incurred
incurred in transaction transaction
Related party Content of transaction in the previous
the current limit (if limit (if
period
period applicable) applicable)
No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering
Receipt of labor services 452,903,273 395,812,379
Co., Ltd.
CCCC Shanghai Equipment Engineering Co., Ltd. Receipt of labor services 368,095,891 267,095,811
CCCC First Highway Engineering Co., Ltd. Receipt of labor services 293,136,519 300,665,193
CCCC Second Harbor Engineering Co., Ltd. Receipt of labor services 227,255,981 132,279,839
CCCC Third Highway Engineering Co., Ltd. Receipt of labor services 220,317,269 166,239,672
CCCC Tianjin Dredging Co., Ltd. Receipt of labor services 152,397,803 300,755,835
CCCC Third Harbor Engineering Co., Ltd. Receipt of labor services 134,197,024 164,243,707
Road & Bridge East China Engineering Co., Ltd. Receipt of labor services 50,674,337 129,730,802
ZPMC Southeast Asia Pte. Ltd. Receipt of labor services 40,615,972 114,109,010
CCCC Construction Group Co., Ltd. (former: CCCC Fourth
Receipt of labor services 28,301,887 5,299,846
Highway Engineering Co., Ltd.)
China Communications Information Technology Group Co., Ltd. Receipt of labor services 18,659,881
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. Receipt of labor services 14,150,943
CCCC Shanghai Dredging Co., Ltd. Receipt of labor services 9,147,073
Shanghai Communications Construction Contracting Co., Ltd. Receipt of labor services 7,018,983
China Road & Bridge Corporation Receipt of labor services 4,281,621 5,897,691
Shanghai China Communications Water Transportation Design &
Receipt of labor services 4,139,151
Research Co., Ltd.
CCCC Second Highway Consultants Co., Ltd. Receipt of labor services 3,475,462 1,329,962
CCCC First Harbor Engineering Co., Ltd. Receipt of labor services 2,321,373 10,475,623
Shanghai Waterway Logistics Co., Ltd. Receipt of labor services 1,492,658 856,132
Installation Engineering Co., Ltd. of CCCC First Harbor
Receipt of labor services 1,344,340 781,386
Engineering Co., Ltd.
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
CCCC Third Harbor Consultants Co., Ltd. Receipt of labor services 939,041 47,170
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Receipt of labor services 885,446 6,424,633
CCCC Xingyu Technology Co., Ltd. Receipt of labor services 861,426 2,049,877
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 1,150,316
CCCC (Xiamen) Information Co., Ltd . Receipt of labor services 45,217 5,209
CCCC Worldcom (Chongqing) Heavy Industries Co., Ltd. Receipt of labor services 19,476,868
CCCC First Harbor Consultants Co., Ltd. Receipt of labor services 7,528,374
ZPMC Changzhou Coatings Co., Ltd. Receipt of labor services 2,973,451
CCCC Shanghai Harbor Engineering Design & Research Institute
Receipt of labor services 1,258,302
Co., Ltd.
CCCC Marine Engineering & Technology Research Center Co.,
Receipt of labor services 692,025
Ltd.
CCCC Water Transportation Planning and Design Institute Co.,
Receipt of labor services 73,943
Ltd.
China Communications Construction Company Ltd. Receipt of labor services 27,080
Shanghai Jiangtian Industrial Co., Ltd. Receipt of labor services 8,332
CCCC Shanghai Equipment Engineering Co., Ltd. Purchase of goods 370,483,873 381,457,531
ZPMC Changzhou Coatings Co., Ltd. Purchase of goods 131,829,860 122,100,652
178
2022
Amount Approved Exceeding
Amount incurred
incurred in transaction transaction
Related party Content of transaction in the previous
the current limit (if limit (if
period
period applicable) applicable)
CNPC & CCCC Petroleum Sales Co., Ltd. Purchase of goods 53,399,047 21,563,726
CCCC Third Harbor Engineering Co., Ltd. Purchase of goods 37,699,113
CCCC Third Harbor Consultants Co., Ltd. Purchase of goods 31,363,816
ZPMC Southeast Asia Pte. Ltd. Purchase of goods 28,685,372
Shanghai Jiangtian Industrial Co., Ltd. Purchase of goods 13,419,612 11,826,245
CCCC Water Transportation Planning and Design Institute Co.,
Purchase of goods 8,336,283
Ltd.
Chuwa Risheng (Beijing) International Trade Co., Ltd. Purchase of goods 7,280,458
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth
Purchase of goods 6,318,584
Harbor Engineering Co., Ltd.
Shanghai Zhensha Longfu Machinery Co., Ltd. Purchase of goods 5,974,560 15,863
Installation Engineering Co., Ltd. of CCCC First Harbor
Purchase of goods 4,867,257
Engineering Co., Ltd.
China Communications Information Technology Group Co., Ltd. Purchase of goods 4,001,152
CCCC Tianjin Industry and Trade Co., Ltd. Purchase of goods 3,899,530 1,866,300
CCCC Fourth Harbor Consultants Co., Ltd. Purchase of goods 3,623,894
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Purchase of goods 2,347,434
CCCC Highway Bridges National Engineering Research Centre
Purchase of goods 1,189,381
Co., Ltd.
CCCC (Xiamen) Information Co., Ltd. Purchase of goods 1,022,057 152,192
Xing An Ji Engineering Co., Ltd. of CCCC Third Harbor
Purchase of goods 775,633
Engineering Co., Ltd.
CCCC Xingyu Technology Co., Ltd. Purchase of goods 266,896 347,434
Shanghai Waterway Logistics Co., Ltd. Purchase of goods 33,033 22,697
CCCC National Engineering Research Center of Dredging
Purchase of goods 22,472,100
Technology and Equipment Co., Ltd.
CCCC Shanghai Channel Equipment Industry Co., Ltd. Purchase of goods 21,777,619
CCCC Second Highway Engineering Co., Ltd. Purchase of goods 3,161,250
Friede & Goldman, Llc. Purchase of goods 2,285,348
CCCC (Xiamen) Information Co., Ltd. Purchase of goods 990,028
Chongqing Yongjiang Expressway Investment and Construction
Purchase of goods 286,716
Co., Ltd. of FHEC of CCCC
China Communications Construction Company Ltd. Purchase of goods 256,441
Shanghai China Communications Water Transportation Design &
Purchase of goods 79,565
Research Co., Ltd.
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering
Purchase of goods 77,324
Co., Ltd.
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
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. Sales of goods/other inflows 1,290,408,439 371,622,372
China Road & Bridge Corporation Sales of goods/other inflows 447,741,507 1,076,133,465
China Harbour Engineering Co., Ltd. Sales of goods/other inflows 441,437,766 13,183
China Harbour Engineering Co., Ltd. Sales of goods/other inflows 407,944,621 464,677,293
CCCC Haifeng Wind Power Development Co., Ltd. Sales of goods/other inflows 374,901,683
No.1 Engineering Co., Ltd. of CCCC First Harbor
Sales of goods/other inflows 213,716,814
Engineering Co., Ltd.
No.2 Engineering Co., Ltd. of CCCC Third Harbor
Sales of goods/other inflows 208,387,950
Engineering Co., Ltd.
CCCC First Harbor Engineering Co., Ltd. Sales of goods/other inflows 167,694,228 658,454,907
179
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
CCCC Third Highway Engineering Co., Ltd. Sales of goods/other inflows 93,106,456 55,241,845
CCCC Fourth Harbor Engineering Co., Ltd. Sales of goods/other inflows 45,044,248
CCCC Second Highway Engineering Co., Ltd. Sales of goods/other inflows 36,106,344 222,256,873
CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. Sales of goods/other inflows 32,668,690 58,852,099
China Communications Construction Company Ltd. Sales of goods/other inflows 28,946,178 22,832,895
Road & Bridge International Co., Ltd. Sales of goods/other inflows 10,805,548 12,612,240
CCCC - SHEC Second Highway Engineering Co., Ltd. Sales of goods/other inflows 8,060,013 2,770,866
CCCC Tianjin Industry and Trade Co., Ltd. Sales of goods/other inflows 6,767,181 9,416,830
CCCC Second Harbor Engineering Co., Ltd. Sales of goods/other inflows 3,669,477 108,882,731
ZPMC Southeast Asia Pte. Ltd. Sales of goods/other inflows 2,611,725 7,916,694
Road and Bridge Construction Chongqing Fengfu
Sales of goods/other inflows 2,335,010 934,633
Expressway Development Co., Ltd.
Road and Bridge Construction Chongqing Fengshi
Sales of goods/other inflows 1,959,278 828,665
Expressway Development Co., Ltd.
CCCC Tianjin Dredging Co., Ltd. Sales of goods/other inflows 1,670,636 17,322,772
Shanghai Jiangtian Industrial Co., Ltd. Sales of goods/other inflows 1,504,488 744,530
CCCC Shanghai Dredging Co., Ltd. Sales of goods/other inflows 1,458,199 757,248
CCCC Shanghai Equipment Engineering Co., Ltd. Sales of goods/other inflows 838,967
CCCC Construction Group Co., Ltd. (former: CCCC Fourth
Sales of goods/other inflows 270,456 2,148,874
Highway Engineering Co., Ltd.)
ZPMC Changzhou Coatings Co., Ltd. Sales of goods/other inflows 200,664
No.2 Engineering Co., Ltd. of CCCC First Harbor Engineering
Sales of goods/other inflows 188,679
Co., Ltd.
Chongqing Yongjiang Expressway Investment and
Sales of goods/other inflows 172,087 105,334
Construction Co., Ltd. of FHEC of CCCC
CCCC (Xiamen) Information Co., Ltd. Sales of goods/other inflows 166,240 362,697
China Communications Information Technology Group Co.,
Sales of goods/other inflows 47,830 66,835
Ltd.
Jiujiang Education Consulting Co., Ltd. of CCCC Second
Sales of goods/other inflows 1,698
Harbor Engineering Co., Ltd.
CCCC Electrical and Mechanical Engineering Co., Ltd. Sales of goods/other inflows 567,936,071
CCCC - SHEC Fourth Highway Engineering Co., Ltd. Sales of goods/other inflows 60,379,716
ZPMC Mediterranean Liman Makinalari Ticaret Anonim
Sales of goods/other inflows 3,595,115
Sirketi
Friede & Goldman, Llc. Sales of goods/other inflows 2,346,934
Beijing Rate Electronic Technology Developing Co., Ltd. Sales of goods/other inflows 1,774,844
CCCC First Highway Engineering Co., Ltd. Sales of goods/other inflows 1,387,096
CCCC - SHEC Railway Construction Co., Ltd. Sales of goods/other inflows 1,288,888
Installation Engineering Co., Ltd. of CCCC First Harbor
Sales of goods/other inflows 702,083
Engineering Co., Ltd.
CCCC Financial Leasing Co., Ltd. Sales of goods/other inflows 454,989
CCCC Guangzhou Dredging Co., Ltd. Sales of goods/other inflows 244,956
CCCC First Highway Electrification Engineering Co., Ltd. Sales of goods/other inflows 231,707
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
180
2022
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
(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 1,535 1,540
(8) Other related party transactions
√Applicable □Not applicable
Distribution of dividends to related parties
2022 2021
CCCG 75,938,271 -
CCCC International (Hong Kong) Holdings Limited 45,837,792 -
121,776,063 -
Deposits in (withdrawal of deposits from) related parties
2022 2021
CCCC Finance Company Ltd. (1,600,236,793) 1,524,770,252
Borrowings from related parties
2022 2021
CCCC Finance Company Ltd. 544,000,000 100,000,000
CCCC Xiongan Financial Leasing Co., Ltd. 120,000,000 326,000,000
664,000,000 426,000,000
Interest collected from related parties
2022 2021
Xiangtan CCCC Infrastructure Investment and Construction Co., Ltd. 28,423,585 -
CCCC Finance Company Ltd. 672,361 229,748
29,095,946 229,748
181
Interest paid to related parties
2022 2021
CCCC Xiongan Financial Leasing Co., Ltd. 14,591,870 13,874,222
CCCC Finance Company Ltd. 7,437,556 20,356,489
CCCC Financial Leasing Co., Ltd. 156,318 5,918,543
CCCC Leasing Jiahua No.1 Co., Ltd. 95,492 8,795,303
CCCC Leasing Jiahua No.2 Co., Ltd. 95,492 4,131,498
CCCC Financial Leasing (Guangzhou) Co., Ltd. - 1,713,225
22,376,728 54,789,280
6 Accounts receivable and payable by related parties
(1) Receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Balance as at December Balance as at December
31, 2022 31, 2021
Item Related parties
Book Provision Book Provision
balance for bad debt balance for bad debt
Accounts receivable CCCC Haifeng Wind Power Development Co., Ltd. 243,735,000
Accounts receivable CCCC Third Harbor Engineering Co., Ltd. 211,646,105 182,219,562
Accounts receivable CCCC First Harbor Engineering Co., Ltd. 192,888,613 166,044,484
Accounts receivable China Road & Bridge Corporation 138,480,715 97,208,155
Jiangsu Longyuan Zhenhua Marine Engineering Co.,
Accounts receivable 119,803,239 151,651,546
Ltd.
Accounts receivable China Harbour Engineering Co., Ltd. 93,246,900 6,926,061
Accounts receivable CCCC Electrical and Mechanical Engineering Co., Ltd. 86,806,696 138,547,709
No.1 Engineering Co., Ltd. of CCCC First Harbor
Accounts receivable 64,841,100 52,779,503
Engineering Co., Ltd.
Accounts receivable CCCC Second Harbor Engineering Co., Ltd. 47,380,307 97,888,662
Xiangtan CCCC Infrastructure Investment and
Accounts receivable 36,599,733
Construction Co., Ltd.
CCCC Marine Engineering & Technology Research
Accounts receivable 23,647,274
Center Co., Ltd.
Accounts receivable CCCC Fourth Harbor Engineering Co., Ltd. 26,986,726
Accounts receivable ZPMC-OTL MARINE CONTRACTOR LIMITED 24,248,168 22,838,856
Accounts receivable China Communications Construction Company Ltd. 20,714,844 35,437,005
Accounts receivable CCCC First Harbor Consultants Co., Ltd. 20,307,006 22,829,248
Accounts receivable Zhenhua Marine Energy (HK) Co., Ltd. 17,872,453 10,510,025
Accounts receivable CCCC Financial Leasing Co., Ltd. 16,865,821 14,888,332
Accounts receivable Friede & Goldman, Llc. 16,293,389 17,063,248
Jiangsu CCCC Green Energy Photovoltaic Technology
Accounts receivable 14,446,169
Co., Ltd.
Accounts receivable CCCC Tianjin Industry and Trade Co., Ltd. 13,863,129 52,046,271
Accounts receivable CCCC - SHEC Fourth Highway Engineering Co., Ltd. 13,833,457 10,622,056
CCCC Tianhe Mechanical Equipment Manufacturing
Accounts receivable 13,805,933 9,220,004
Co., Ltd.
Accounts receivable ZPMC Southeast Asia Pte. Ltd. 13,486,165 19,345,412
ZPMC Mediterranean Liman Makinalari Ticaret Anonim
Accounts receivable 11,282,084 10,799,805
Sirketi
Tianjin International Marine Engineering Co., Ltd.
Accounts receivable (former: Binhai Environmental Protection Dredging 8,160,365 8,160,365
Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.)
182
2022
Balance as at December Balance as at December
31, 2022 31, 2021
Item Related parties
Book Provision Book Provision
balance for bad debt balance for bad debt
Accounts receivable CCCC Fourth Harbor Consultants Co., Ltd. 7,398,000 7,398,000
No.3 Engineering Co., Ltd. of CCCC Second Harbor
Accounts receivable 7,282,296 747,641
Engineering Co., Ltd.
No.4 Engineering Co., Ltd. of CCCC Second Harbor
Accounts receivable 6,137,565
Engineering Co., Ltd.
Accounts receivable CCCC Second Highway Engineering Co., Ltd. 5,546,487 19,461,889
Accounts receivable CCCC-SHEC Fifth Highway Engineering Co., Ltd. 5,031,955
The First Construction Company of CCCC Second
Accounts receivable 3,750,000 4,235,276
Harbor Engineering Co., Ltd.
Accounts receivable CCCC First Highway Engineering Co., Ltd. 3,110,301 2,391,979
No. 6 Engineering Co., Ltd. of CCCC First Highway
Accounts receivable 3,032,564 2,000,000
Engineering Co., Ltd.
Accounts receivable CCCC - SHEC Second Highway Engineering Co., Ltd. 2,479,578 75,045
Road and Bridge Construction Chongqing Fengfu
Accounts receivable 2,335,010 934,633
Expressway Development Co., Ltd.
Accounts receivable Sichuan Road & Bridge Group Co., Ltd. 2,156,724
Accounts receivable Shanghai Jiangtian Industrial Co., Ltd. 2,014,799 432,337
Accounts receivable CCCC Third Harbor Consultants Co., Ltd. 2,007,459 12,771,119
Accounts receivable Chongqing Zhongwan Expressway Co., Ltd. 1,679,281
Accounts receivable Road & Bridge International Co., Ltd. 1,143,748 11,187,853
Accounts receivable CCCC Third Highway Engineering Co., Ltd. 1,128,632 1,952,749
Beijing Rate Electronic Technology Developing Co.,
Accounts receivable 891,517 1,155,417
Ltd.
Shanghai Interlink Road & Bridge Engineering Co.,
Accounts receivable 670,488 1,900,000
Ltd.
Accounts receivable CCCC-SHEC Railway Construction Co., Ltd. 656,275
Road and Bridge Construction Chongqing Fengshi
Accounts receivable 601,676 828,665
Expressway Development Co., Ltd.
CCCC Chenzhou Road Construction Machinery Co.,
Accounts receivable 531,658 531,658
Ltd.
No.2 Engineering Co., Ltd. of CCCC Second Harbor
Accounts receivable 417,150 417,150
Engineering Co., Ltd.
Accounts receivable CCCG 300,000
Installation Engineering Co., Ltd. of CCCC First Harbor
Accounts receivable 213,349 978,404
Engineering Co., Ltd.
No.2 Engineering Co., Ltd. of CCCC First Harbor
Accounts receivable 200,000
Engineering Co., Ltd.
Accounts receivable CCCC Shanghai Equipment Engineering Co., Ltd. 168,000 232,500
Accounts receivable CCCC Tianjin Dredging Co., Ltd. 82,800
CCCC Construction Group Co., Ltd. (former: CCCC
Accounts receivable 82,015 1,228,228
Fourth Highway Engineering Co., Ltd.)
Accounts receivable CCCC Guidu Highway Construction Co., Ltd. 63,951 63,951
Accounts receivable Yueyang Chenglingji New Port Co., Ltd. 48,680 48,680
Chongqing Yongjiang Expressway Investment and
Accounts receivable 36,257 105,334
Construction Co., Ltd. of FHEC of CCCC
SanYa Phoenix Island International Cruise Terminal
Accounts receivable 33,740 33,740
Development Co., Ltd.
Accounts receivable CCCC First Highway Electrification Engineering Co., Ltd. 26,407 440,118
183
Balance as at December Balance as at December
31, 2022 31, 2021
Item Related parties
Book Provision Book Provision
balance for bad debt balance for bad debt
Accounts receivable CCCC - SHEC Railway Construction Co., Ltd. 23,980 2,660,549
Accounts receivable ZPMC ISTANBUL LIMAN MAKINALARI Tic A.S. 3,482 3,188
Accounts receivable Chuwa Risheng (Beijing) International Trade Co., Ltd. 5,420,000
Accounts receivable Road & Bridge South China Engineering Co., Ltd. 3,297,002
Accounts receivable CCCC Xi’an Road Construction Machinery Co., Ltd. 200,000
Receivables financing CCCC Third Harbor Engineering Co., Ltd. 52,661,823 34,650,000
Receivables financing CCCC First Harbor Engineering Co., Ltd. 51,766,155 32,647,622
Receivables financing CCCC Third Highway Engineering Co., Ltd. 38,000,000
Receivables financing CCCC Second Highway Engineering Co., Ltd. 34,367,325 3,000,000
Receivables financing Road & Bridge International Co., Ltd. 22,230,347
No.1 Engineering Co., Ltd. of CCCC First Harbor
Receivables financing 10,537,271 51,736,656
Engineering Co., Ltd.
Receivables financing CCCC Tianjin Industry and Trade Co., Ltd. 3,498,829
CCCC First Highway Electrification Engineering Co.,
Receivables financing 300,000 599,796
Ltd.
Receivables financing CCCC-SHEC Railway Construction Co., Ltd. 202,412
Installation Engineering Co., Ltd. of CCCC First Harbor
Receivables financing 63,000
Engineering Co., Ltd.
Receivables financing Road & Bridge East China Engineering Co., Ltd. 17,500,000
Receivables financing CCCC Fourth Harbor Engineering Co., Ltd. 10,500,000
Other receivables Zhenhua Marine Energy (HK) Co., Ltd. 164,124,678 164,124,678 164,124,678 164,124,678
Other receivables CCCC First Harbor Engineering Co., Ltd. 40,331,081 13,413,065
Other receivables CCCC Third Harbor Engineering Co., Ltd. 34,863,137
Other receivables China Road & Bridge Corporation 32,174,052
Other receivables CCCC Second Harbor Engineering Co., Ltd. 26,080,121
Jiangsu Longyuan Zhenhua Marine Engineering Co.,
Other receivables 25,033,390 23,227,824
Ltd.
CCCC National Engineering Research Center of
Other receivables 12,167,079
Dredging Technology and Equipment Co., Ltd.
Other receivables CCCC Third Highway Engineering Co., Ltd. 11,671,593 10,000
Other receivables CCCC Electrical and Mechanical Engineering Co., Ltd. 11,230,777 40,000
Other receivables Road & Bridge International Co., Ltd. 10,311,354
Other receivables CCCC Xiongan Financial Leasing Co., Ltd. 6,000,000 4,000,000
Other receivables China Communications Construction Company Ltd. 3,782,930 4,220,126
Other receivables CCCC Fourth Harbor Engineering Co., Ltd. 3,117,699
Other receivables CCCC First Harbor Consultants Co., Ltd. 2,602,610
No.4 Engineering Co., Ltd. of CCCC Second Harbor
Other receivables 2,116,091
Engineering Co., Ltd.
Other receivables CCCC - SHEC Second Highway Engineering Co., Ltd. 1,623,738
Other receivables CCCC Second Highway Engineering Co., Ltd. 1,611,506 153,605
Other receivables CCCC Yancheng Construction Development Co., Ltd. 1,600,000 1,600,000
Other receivables CCCG 1,356,800
No.2 Engineering Co., Ltd. of CCCC Third Harbor
Other receivables 1,327,942
Engineering Co., Ltd.
Other receivables CCCC Fourth Harbor Consultants Co., Ltd. 992,576
184
2022
Balance as at December Balance as at December
31, 2022 31, 2021
Item Related parties
Book Provision Book Provision
balance for bad debt balance for bad debt
CCCC Xiongan Urban Construction Development Co.,
Other receivables 550,000
Ltd.
Other receivables CCCC Financial Leasing Co., Ltd. 206,389
Other receivables CCCC East China Investment Co., Ltd. 194,959 132,207
ZPMC Mediterranean Liman Makinalari Ticaret Anonim
Other receivables 178,642
Sirketi
Other receivables CCCC Northeast Investment Co., Ltd. 152,002
Other receivables China Harbour Engineering Co., Ltd. 138,462 101,203
Other receivables Shanghai Jiangtian Industrial Co., Ltd. 77,552
Other receivables ZPMC-OTL MARINE CONTRACTOR LIMITED 49,038 14,553
Other receivables ZPMC Southeast Asia Pte. Ltd. 15,165
Jiujiang Education Consulting Co., Ltd. of CCCC
Other receivables 1,800
Second Harbor Engineering Co., Ltd.
Other receivables CCCC Capital Holdings Co., Ltd. 62,210,484
China Communications Information Technology Group
Other receivables 11,713
Co., Ltd.
Other receivables CCCC Shanghai Dredging Co., Ltd. 4,400
Other receivables ZPMC Changzhou Coatings Co., Ltd. 2,157
Advances to suppliers Road & Bridge East China Engineering Co., Ltd. 24,847,917 14,149,179
Advances to suppliers CCCC First Highway Engineering Co., Ltd. 16,625,967
Advances to suppliers CCCC Third Harbor Consultants Co., Ltd. 10,651,759 11,850,000
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC
Advances to suppliers 7,000,000
Fourth Harbor Engineering Co., Ltd.
Advances to suppliers CCCC Fourth Harbor Consultants Co., Ltd. 4,095,000
CCCC Worldcom (Chongqing) Heavy Industries Co.,
Advances to suppliers 385,568
Ltd.
Advances to suppliers China Harbour Engineering Co., Ltd. 5,000
CCCC Third Harbor Engineering Co., Ltd. Xiamen
Advances to suppliers 2,000
Branch
Advances to suppliers CCCC Second Harbor Engineering Co., Ltd. 600
Advances to suppliers CCCC First Harbor Engineering Co., Ltd. 5,500,000
Advances to suppliers CCCC Third Harbor Engineering Co., Ltd. 11,770
Advances to suppliers ZPMC Changzhou Coatings Co., Ltd. 4,145
Jiangsu Longyuan Zhenhua Marine Engineering Co.,
Contract assets 605,354,047
Ltd.
Contract assets CCCC First Harbor Engineering Co., Ltd. 62,352,928 16,790,746
Contract assets CCCC Haifeng Wind Power Development Co., Ltd. 48,181,663
Contract assets CCCC Second Harbor Engineering Co., Ltd. 30,082,851 58,199,415
Contract assets China Road & Bridge Corporation 22,477,343 15,314,507
Contract assets CCCC Second Highway Engineering Co., Ltd. 21,831,279 16,603,220
Contract assets CCCC Third Highway Engineering Co., Ltd. 15,018,912 2,597,625
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 3,944,683
Contract assets CCCC Third Harbor Engineering Co., Ltd. 3,004,388 6,049,547
Contract assets Sichuan Road & Bridge Group Co., Ltd. 2,297,016
185
Balance as at December Balance as at December
31, 2022 31, 2021
Item Related parties
Book Provision Book Provision
balance for bad debt balance for bad debt
Contract assets CCCC Electrical and Mechanical Engineering Co., Ltd. 27,477,285
Contract assets CCCC - SHEC Fourth Highway Engineering Co., Ltd. 6,211,400
Contract assets China Communications Construction Company Ltd. 3,067,965
Contract assets Road & Bridge International Co., Ltd. 2,131,171
The First Construction Company of CCCC Second
Contract assets 1,836,207
Harbor Engineering Co., Ltd.
Contract assets CCCC First Harbor Consultants Co., Ltd. 720,513
Other non-current
China Harbour Engineering Co., Ltd. 16,115,040
assets
Other non-current
CCCC Fourth Harbor Engineering Co., Ltd. 2,252,212
assets
Other non-current Jiangsu Longyuan Zhenhua Marine Engineering Co.,
4,690,047
assets Ltd.
Other non-current
CCCC First Harbor Engineering Co., Ltd. 16,790,746
assets
Other non-current
CCCC Second Harbor Engineering Co., Ltd. 41,510,434
assets
Other non-current
CCCC Second Highway Engineering Co., Ltd. 16,516,684
assets
Other non-current
Road & Bridge International Co., Ltd. 2,131,171
assets
Other non-current
China Road & Bridge Corporation 15,314,507
assets
Other non-current
CCCC Third Highway Engineering Co., Ltd. 1,467,889
assets
Other non-current
CCCC Third Harbor Engineering Co., Ltd. 2,874,326
assets
Other non-current
CCCC - SHEC Fourth Highway Engineering Co., Ltd. 6,211,400
assets
(2) Payables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Ending book Beginning book
Item Related parties
balance balance
Accounts payable CCCC Third Harbor Engineering Co., Ltd. 331,634,582 237,337,752
Accounts payable CCCC First Highway Engineering Co., Ltd. 259,160,857 109,513,338
Accounts payable CCCC Third Highway Engineering Co., Ltd. 250,106,814 171,953,904
CCCC Construction Group Co., Ltd. (former: CCCC Fourth Highway
Accounts payable 101,897,141 174,746,384
Engineering Co., Ltd.)
Accounts payable CCCC Shanghai Equipment Engineering Co., Ltd. 83,614,468 51,172,227
Accounts payable CCCC Second Harbor Engineering Co., Ltd. 74,160,316 132,281,871
Accounts payable ZPMC Changzhou Coatings Co., Ltd. 43,778,590 33,794,779
Accounts payable CCCC Tianjin Dredging Co., Ltd. 33,225,252
Accounts payable Road & Bridge International Co., Ltd. 22,984,931
Accounts payable Shanghai Communications Construction Contracting Co., Ltd. 21,494,837 13,844,146
Accounts payable CCCC Shanghai Dredging Co., Ltd. 20,295,398 13,355,089
Accounts payable CCCC Second Highway Consultants Co., Ltd. 20,038,332 18,804,342
Accounts payable CNPC & CCCC Petroleum Sales Co., Ltd. 18,903,424 10,696,813
186
2022
Ending book Beginning book
Item Related parties
balance balance
Accounts payable No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 16,878,682 18,318,225
Accounts payable ZPMC Southeast Asia Pte. Ltd. 16,657,949 18,035,599
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor
Accounts payable 14,280,000
Engineering Co., Ltd.
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 CCCC First Harbor Consultants Co., Ltd. 7,631,212 7,631,212
Accounts payable Shanghai Zhensha Longfu Machinery Co., Ltd. 6,751,252
Accounts payable CCCC First Harbor Engineering Co., Ltd. 6,498,606 10,054,549
Accounts payable CCCC Water Transportation Planning and Design Institute Co., Ltd. 5,907,891 5,907,891
Accounts payable Shanghai Jiangtian Industrial Co., Ltd. 4,419,111 17,864,928
CCCC National Engineering Research Center of Dredging Technology and
Accounts payable 3,962,714 4,091,155
Equipment Co., Ltd.
Accounts payable CCCC Shanghai Channel Equipment Industry Co., Ltd. 594,418 2,196,743
Accounts payable Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 450,000 3,998,467
Chongqing Yongjiang Expressway Investment and Construction Co., Ltd. of
Accounts payable 323,990 323,990
FHEC of CCCC
Accounts payable Xiamen Jiehang Engineering Testing Technology Co., Ltd. 256,536
Accounts payable CCCC Second Highway Engineering Co., Ltd. 121,494 121,494
Accounts payable CCCC Marine Engineering & Technology Research Center Co., Ltd. 2,874,835
Accounts payable Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 33,849 33,849
Accounts payable ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 11,691
Accounts payable Zhenhua (Singapore) Engineering Co., Ltd. 9,774
Accounts payable CCCC Tianjin Dredging Co., Ltd. 70,685,645
Accounts payable Xing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 10,051,352
Accounts payable China Road & Bridge Corporation 6,251,552
Accounts payable Friede & Goldman, Llc. 2,582,443
Accounts payable CCCC Tianjin Industry and Trade Co., Ltd. 1,952,627
Accounts payable CCCC Xingyu Technology Co., Ltd. 1,259,406
CCCC (Tianjin) Ecological and Environmental Protection Design Institute Co.,
Accounts payable 385,000
Ltd.
Accounts payable CCCC Third Harbor Consultants Co., Ltd. 100,000
Accounts payable CCCC (Xiamen) Information Co., Ltd. 40,990
Accounts payable China Communications Information Technology Group Co., Ltd. 40,189
Notes payable CCCC Shanghai Equipment Engineering Co., Ltd. 106,040,000 73,347,092
Notes payable ZPMC Changzhou Coatings Co., Ltd. 12,215,422 4,000,000
Notes payable CCCC Second Highway Engineering Co., Ltd. 15,123,879
Notes payable Road & Bridge East China Engineering Co., Ltd. 15,000,000
Contract liabilities CCCC Third Harbor Engineering Co., Ltd. 197,449,765 25,770,208
Contract liabilities No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 170,288,676
Contract liabilities Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 125,675,111 2,155,195
Contract liabilities China Harbour Engineering Co., Ltd. 92,144,941 92,397,526
Contract liabilities Road & Bridge International Co., Ltd. 80,598,342
Contract liabilities China Road & Bridge Corporation 28,615,217 248,581,718
Contract liabilities CCCC Yancheng Construction Development Co., Ltd. 19,370,518
Contract liabilities CCCC First Harbor Engineering Co., Ltd. 18,506,940 86,331,637
Contract liabilities CCCC Third Highway Engineering Co., Ltd. 15,160,936
Contract liabilities Zhenhua Engineering Co., Ltd. 11,480,886 11,480,886
187
Ending book Beginning book
Item Related parties
balance balance
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. 3,000,000 175,641,593
Tianjin International Marine Engineering Co., Ltd. (former: Binhai
Contract liabilities Environmental Protection Dredging Co., Ltd. of CCCC Tianjin Dredging Co., 1,190,280 10,280
Ltd.)
Contract liabilities CCCC Tianjin Industry and Trade Co., Ltd. 1,158,633
Contract liabilities China Communications Construction Company Ltd. 644,250 50,000,000
Contract liabilities CCCC Second Highway Engineering Co., Ltd. 516,117
Contract liabilities ZPMC Southeast Asia Pte. Ltd. 336,651 2,388,488
Contract liabilities No.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. 248,624 4,857,786
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 Friede & Goldman, Llc. 67,174 135,518,892
Contract liabilities China Highway Vehicle & Machinery Co., Ltd. 200
Contract liabilities CCCC Fourth Harbor Engineering Co., Ltd. 12,265,487
The First Construction Company of CCCC Second Harbor Engineering Co.,
Contract liabilities 11,009,174
Ltd.
Contract liabilities CCCC Tianjin Dredging Co., Ltd. 522,000
Contract liabilities No.2 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. 303,149
Contract liabilities No.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd. 71
Other payables Shanghai Jiangtian Industrial Co., Ltd. 5,571,886 4,586,085
Other payables CCCC Dredging (Group) Co., Ltd. 2,000,000
Other payables Road & Bridge International Co., Ltd. 1,600,000
Other payables CCCG 1,599,944 243,144
Other payables No.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd. 1,327,942
Other payables CCCC Third Highway Engineering Co., Ltd. 743,216 5,724
Other payables No.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd. 657,337 295,750
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 Shanghai Equipment Engineering Co., Ltd. 107,000 100,000
Other payables Xiamen Jiehang Engineering Testing Technology Co., Ltd. 64,237
Other payables ZPMC Changzhou Coatings Co., Ltd. 57,600 79,872
Other payables CCCC Third Harbor Engineering Co., Ltd. 51,664
Other payables CCCC Tianjin Dredging Co., Ltd. 51,129
Other payables Tianjin Harbour Engineering Quality Inspection Center Co., Ltd. 49,000
Other payables CCCC Leasing (Shandong) Co., Ltd. 20,000
Shanghai China Communications Water Transportation Design & Research
Other payables 15,200
Co., Ltd.
Other payables Harbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd. 11,434
Other payables DaHua Technology Co., Ltd. 10,000
CCCC National Engineering Research Center of Dredging Technology and
Other payables 100
Equipment Co., Ltd.
Other payables CCCC Tianjin Dredging Co., Ltd. 2,000,000
Other payables Zhen Hwa Harbour Construction Co., Ltd. 6,593
Other payables Beijing BLDJ Landscape Architecture Institute Co., LTD. 3,000
Other payables Shanghai Donghua Construction Co., Ltd. 3,000
188
2022
Ending book Beginning book
Item Related parties
balance balance
Short-term
CCCC Xiongan Financial Leasing Co., Ltd. 20,000,000 126,906,111
borrowings
Non-current liabilities
CCCC Xiongan Financial Leasing Co., Ltd. 117,003,704 66,666,667
due within one year
Long-term payables CCCC Tianjin Dredging Co., Ltd. 243,811,149 219,719,005
Long-term payables CCCC Second Harbor Engineering Co., Ltd. 137,123,967 60,846,413
CCCC Construction Group Co., Ltd. (former: CCCC Fourth Highway
Long-term payables 39,558,526 39,558,526
Engineering Co., Ltd.)
Long-term payables CCCC Third Harbor Engineering Co., Ltd. 34,665,923 34,665,923
Long-term payables CCCC Xiongan Financial Leasing Co., Ltd. 33,555,556 100,333,333
Long-term payables No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. 9,520,885 9,520,885
Long-term payables CCCC - SHEC Second Highway Engineering Co., Ltd. 125,862 125,862
Long-term payables CCCC Leasing Jiahua No.1 Co., Ltd. 85,721,883
Long-term
CCCC Finance Company Ltd. 644,393,556 100,055,556
borrowings
Long-term
CCCC Xiongan Financial Leasing Co., Ltd. 25,168,519
borrowings
7 Commitments with related parties
√Applicable □Not applicable
Rendering of services for the Group by related parties
2022 2021
CCCC Third Harbor Engineering Co., Ltd. 761,097,020 770,463,672
CCCC Tianjin Dredging Co., Ltd. 393,318,809 545,716,613
CCCC First Highway Fifth Engineering Co., Ltd. 388,366,210 388,366,210
No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. 305,931,400 305,931,400
CCCC First Highway Engineering Co., Ltd. 185,310,227 478,446,746
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 56,568,996 56,568,996
Shanghai Communications Construction Contracting Co., Ltd. 2,631,313 9,650,296
CCCC Tunnel Engineering Company Limited 158,070 158,070
2,093,382,045 2,555,302,003
2022 2021
CCCC Haifeng Wind Power Development Co., Ltd. 942,273,538 -
CCCC National Engineering Research Center of Dredging Technology and
528,800,000 -
Equipment Co., Ltd.
Road & Bridge International Co., Ltd. 241,720,000 -
CCCC First Harbor Engineering Co., Ltd. 224,844,126 390,361,699
CCCC Second Highway Engineering Co., Ltd. 154,280,200 254,806,857
CCCC Third Harbor Engineering Co., Ltd. 145,655,357 69,920,757
China Harbour Engineering Co., Ltd. 55,177,980 770,512,465
CCCC-SHEC First Highway Engineering Co., Ltd. 36,000,000 -
China Road & Bridge Corporation 34,957,678 785,312,864
No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 27,783,186 -
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 25,950,000 103,090,433
CCCC Fourth Harbor Engineering Co., Ltd. 5,855,752 -
China Communications Construction Company Ltd. 3,681,416 -
CCCC - SHEC Second Highway Engineering Co., Ltd. - 101,152,667
189
2022 2021
CCCC Third Highway Engineering Co., Ltd. - 89,095,627
CCCC Second Harbor Engineering Co., Ltd. - 55,563,116
2,426,979,233 2,619,816,485
8 Others
√Applicable □Not applicable
Monetary funds deposited in the related parties
2022 2021
CCCC Finance Company Ltd. 435,568 1,600,000,000
XIII Share-based payment
1 General of share based payment
□Applicable √Not applicable
2 Equity-settled share-based payments
□Applicable √Not applicable
3 Cash-settled share-based payments
□Applicable √Not applicable
4 Modification and termination of share-based payment
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
XIV 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:
2022 2021
Buildings and constructions, machinery equipment 569,759,423 623,727,601
L/C commitments
The Group had entrusted the bank to issue several L/Cs to purchase imported components and parts. As at December
31, 2022, the unpaid amount under the L/Cs was about RMB 2,201,297,673 (as at December 31, 2021: RMB 2,160,907,314).
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
190
2022
XV. Post balance sheet events
1 Significant non-adjustment events
□Applicable √Not applicable
2 Profit distribution
□Applicable √Not applicable
3 Sales return
□Applicable √Not applicable
4 Description of other post balance sheet events
□Applicable √Not applicable
XVI.Other significant events
1 Correction of previous accounting errors
(1) Retrospective restatement
□Applicable √Not applicable
(2) Prospective application
□Applicable √Not applicable
2 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
191
(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
2022 2021
Port machinery 20,731,800,489 17,480,944,149
Steel structure and related income 2,731,132,322 3,754,693,300
Engineering construction projects 1,613,996,721 2,216,802,462
Shipping and lifting services 1,719,708,160 1,317,441,452
Heavy equipment 3,085,509,098 760,120,955
Lease income 225,960,519 245,663,739
Sales of materials and others 83,685,678 202,310,911
Total 30,191,792,987 25,977,976,968
Geographic information
Income from external transactions
2022 2021
Chinese Mainland 16,017,286,405 13,821,963,961
Asia (excluding Chinese Mainland) 7,867,109,144 4,459,069,862
North America 2,181,504,594 3,226,645,406
Africa 1,368,578,664 1,394,212,611
Chinese Mainland (export sales) 968,104,389 718,960,209
Europe 877,042,956 2,038,120,499
South America 600,144,518 206,298,856
Oceania 312,022,317 112,705,564
Total 30,191,792,987 25,977,976,968
The income from external transaction is attributable to where the customer is located.
Total non-current assets
2022 2021
Chinese Mainland 19,253,173,359 19,258,280,848
Asia (excluding Chinese Mainland) 10,140,996,412 9,267,671,402
Others 111,020,668 53,531,410
Total 29,505,190,439 28,579,483,660
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
Lease
(1) As a lessor
The Group leases out some buildings and constructions for periods ranging from 10-12 years, forming operating lease.
In accordance with the lease agreement, the rental is subject to annual adjustment according to the market rental status.
In 2022, the Group’s income from the lease of buildings and constructions was RMB 74,079,295 (2021: RMB 98,983,314),
which is detailed in Note VII (61). The buildings and constructions leased out are presented in investment real estate, which
is detailed in Note VII (20).
192
2022
The Group leases out some ships for periods ranging from 2-3 years, forming operating lease. In accordance with
the lease agreement, the rental is subject to annual adjustment according to the market rental status. In 2022, the Group’s
income from the lease of ships was RMB 140,717,121 (2021: RMB 125,616,125), which is detailed in Note VII (61). The
ships leased out are presented in fixed assets, which is detailed in Note VII (21).
The Group leases out some of its machinery and equipment for periods ranging from 10 to 180 days, forming operating
lease. In 2022, the Group’s income from the lease of machinery and equipment was RMB 11,164,103 (2021: RMB
21,064,302), which is detailed in Note VII (61).
Operating lease
The profit or loss related to operating leases is presented as follows:
2022 2021
Lease income 225,960,519 245,663,739
According to the lease agreement signed with the lessee, the minimum lease receipts of non-cancellable leases are as
follows:
2022 2021
Within 1 year (including 1 year) 239,242,941 96,052,177
1 to 2 years (including 2 years) 132,035,513 98,450,801
2-3 years (including 3 years) 42,528,101 73,936,063
3 to 4 years (including 4 years) 19,751,071 35,084,850
4 to 5 years (including 5 years) 85,516,755 18,508,663
Over 5 years 828,273 84,274,346
Total 519,902,654 406,306,900
(2) As a lessee
2022 2021
Interest expense of lease liabilities 615,840 443,939
Short-term lease expenses with simplified treatment included in the current profit or
104,487,307 92,747,477
loss
Total cash outflows related to leases 122,403,881 104,632,378
Cash inflow from leaseback - 732,028,920
Cash outflow from leaseback 242,328,806 662,155,962
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).
8 Others
□Applicable √Not applicable
193
XVII. 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
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 15,808,520,882
1-2 years 580,444,164
2-3 years 1,854,369,394
Over 3 years
3-4 years 666,023,611
4-5 years 83,902,642
Over 5 years 1,126,924,513
Total 20,120,185,206
(2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Category Book balance Provision for bad debts Book balance Provision for bad debts
Book value Book value
Proportion Proportion of Proportion Proportion of
Amount Amount Amount Amount
(%) provision (%) (%) provision (%)
Provision for bad debts accrued on an
896,540,136 4 825,285,390 92 71,254,746 898,273,314 5 655,457,495 73 242,815,819
individual basis
Including:
Provision for bad debts by portfolio 19,223,645,070 96 1,280,658,766 7 17,942,986,304 16,035,525,320 95 1,233,339,095 8 14,802,186,225
Including:
Total 20,120,185,206 / 2,105,944,156 / 18,014,241,050 16,933,798,634 / 1,888,796,590 / 15,045,002,044
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022
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
Accounts receivable 2 173,768,233 173,768,233 100 Contract dispute
Accounts receivable 3 93,954,000 93,954,000 100 Counterparty financial shortage
Accounts receivable 4 51,028,800 51,028,800 100 Contract dispute
Accounts receivable 5 43,053,946 43,053,946 100 Contract dispute
Accounts receivable 6 27,858,470 27,858,470 100 Contract dispute
Accounts receivable 7 10,208,916 10,208,916 100 Contract dispute
Accounts receivable 8 7,450,764 7,450,764 100 Contract dispute
Accounts receivable 9 7,495,088 7,495,088 100 Contract dispute
Accounts receivable 10 2,220,314 2,220,314 100 Contract dispute
Accounts receivable 11 3,576,178 3,576,178 100 Contract dispute
Accounts receivable 12 893,788 893,788 100 Counterparty financial shortage
Total 896,540,136 825,285,390 92 /
194
2022
Description of individual provision for bad debts:
√Applicable □Not applicable
As at December 31, 2021, the accounts receivables with individual provision for bad debts are as follows:
Book balance Provision for bad debts Estimated credit loss ratio % Reason for provision
Accounts receivable 1 485,631,638 242,815,819 50 Counterparty financial shortage
Accounts receivable 2 169,011,372 169,011,372 100 Contract dispute
Accounts receivable 3 93,954,000 93,954,000 100 Counterparty financial shortage
Accounts receivable 4 51,028,800 51,028,800 100 Contract dispute
Accounts receivable 5 42,979,947 42,979,947 100 Contract dispute
Accounts receivable 6 25,502,864 25,502,864 100 Contract dispute
Accounts receivable 7 9,929,450 9,929,450 100 Contract dispute
Accounts receivable 8 7,289,912 7,289,912 100 Contract dispute
Accounts receivable 9 6,820,756 6,820,756 100 Contract dispute
Accounts receivable 10 3,273,790 3,273,790 100 Contract dispute
Accounts receivable 11 2,032,572 2,032,572 100 Contract dispute
Accounts receivable 12 818,213 818,213 100 Contract dispute
Total 898,273,314 655,457,495
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to other
receivables for disclosure:
□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
(5) Top 5 accounts receivable in terms of ending balance presented by debtor
√Applicable □Not applicable
As at December 31, 2022, top 5 accounts receivable in terms of ending balance presented by debtor are summarized
and analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 12,573,763,269 542,210,388 62
As at December 31, 2021, top 5 accounts receivable in terms of ending balance presented by debtor are summarized
and analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 11,702,726,987 321,196,592 69
Other description
None
(6) Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
195
Other description:
√Applicable □Not applicable
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
2022 2021
Expected credit Expected credit
Book balance of Estimated credit Book balance of Estimated credit
loss for the entire loss for the entire
estimated default loss ratio (%) estimated default loss ratio (%)
duration duration
Within 1 year 15,806,393,464 1 88,542,607 12,442,731,692 1 92,165,108
1-2 years 580,444,164 14 79,426,723 2,324,246,479 15 350,138,491
2-3 years 1,744,608,256 27 464,722,489 254,417,625 26 65,236,040
3-4 years 223,238,665 38 85,019,638 93,702,810 45 42,034,900
4-5 years 69,671,842 58 40,507,107 130,310,749 66 85,404,118
Over 5 years 799,288,679 65 522,440,202 790,115,965 76 598,360,438
Total 19,223,645,070 1,280,658,766 16,035,525,320 1,233,339,095
Changes in the provision for bad debts of accounts receivable are as follows:
January 1, 2022 Provision in 2022 Reversal in 2022 December 31, 2022
2022 1,888,796,590 677,030,281 (459,882,715) 2,105,944,156
2021 1,803,709,232 646,175,124 (561,087,766) 1,888,796,590
2 Other receivables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31, 2022 December 31, 2021
Interest receivable
Dividends receivable 315,789,096
Other receivables 1,364,774,518 3,836,840,864
Total 1,680,563,614 3,836,840,864
Other description:
□Applicable √Not applicable
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
Other description:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
√Applicable □Not applicable
Project (or invested entity) December 31, 2022 December 31, 2021
Nanjing Ninggao New Channel Construction
315,789,096
Co., Ltd.
Total 315,789,096
(5) Significant dividends receivable aging over 1 year
□Applicable √Not applicable
Provision for bad debts□Applicable √Not applicable
Other description:
□Applicable √Not applicable
196
2022
Other receivables
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Aging December 31, 2022
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 1,337,834,798
1-2 years 41,098,467
2-3 years 6,159,589
Over 3 years
3-4 years 3,740,605
4-5 years 199,800
Over 5 years 9,610,964
Total 1,398,644,223
(2) Classification by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Nature of funds December 31, 2022 December 31, 2021
Current accounts between subsidiaries 671,021,717 3,293,532,451
Taxes on outstanding payment receivable 332,163,971 318,884,216
Equity disposal receivables 62,210,484
Customs deposits 267,023,626 61,537,519
Bid and performance bonds 50,292,193 41,731,603
Lease payment receivable 41,353,252 33,434,668
Money on call of on-site product service 21,959,592 21,040,992
Staff loan receivable 13,295,583 14,644,659
Others 1,534,289 149,879
Total 1,398,644,223 3,847,166,471
(3) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Expected credit Expected credit loss for the Expected credit loss for
Provision for bad debt Total
losses over the next entire duration (no credit the entire duration (credit
12 months impairment) impairment occurred)
Balance as at January 1, 2022 4,425,519 5,900,088 10,325,607
Balance as at January 1, 2022 in
current period
--Transferred to Stage II
--Transferred to Stage III
--Reversal to Stage II
--Reversal to Stage I
Provision in the current period 23,544,098 23,544,098
Reversal in the current period
Write-off in the current period
Charge-off in the current period
Other changes
Balance as at December 31, 2022 27,969,617 5,900,088 33,869,705
197
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
(4) Provision for bad debts
□Applicable √Not applicable
(5) Other receivables actually written off in the current period
□Applicable √Not applicable
(6) 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
December
Name Nature Aging total balance of other for bad debts as at
31, 2022
receivables (%) December 31, 2022
Other receivables 1 Customs-related security deposit 267,023,626 Within 1 year 19
Other receivables 2 Transactions with subsidiaries 207,756,614 1-2 years 15
Other receivables 3 Transactions with subsidiaries 156,491,005 Within 1 year 11
Other receivables 4 Transactions with subsidiaries 97,081,673 Within 1 year 7
Other receivables 5 Unpaid taxes receivable 65,462,896 3-4 years 5 23,571,255
Total / 793,815,814 / 57 23,571,255
(7) Receivables involving government subsidies
□Applicable √Not applicable
(8) Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(9) Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
3 Long-term equity investments
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31, 2022 December 31, 2021
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in subsidiaries 7,403,925,081 7,403,925,081 7,230,010,801 7,230,010,801
Investment in joint ventures
1,985,654,163 1,985,654,163 1,816,129,602 1,816,129,602
and associates
Total 9,389,579,244 9,389,579,244 9,046,140,403 9,046,140,403
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase Provision for Balance of provision
December 31, Decrease in December 31,
Invested entity in current impairment in for impairment as at
2021 current period 2022
period current period December 31, 2022
Shanghai Zhenhua Heavy Industries Port Machinery General
2,201,086,744 2,201,086,744
Equipment Co., Ltd.
Nanjing Ninggao New Channel Construction Co., Ltd. 100,000,000 100,000,000
Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd. 2,500,000,000 2,500,000,000
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.
CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.
ZPMC Qidong Marine Engineering Co., Ltd. 203,000,000 203,000,000
198
2022
Increase Provision for Balance of provision
December 31, Decrease in December 31,
Invested entity in current impairment in for impairment as at
2021 current period 2022
period current period December 31, 2022
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. 242,500,000 55,000,000 297,500,000
ZPMC North America Inc. 18,564,520 18,564,520
ZPMC Netherlands Coperatie U.A. 29,366,084 68,880 29,434,964
Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd. 9,964,200 9,964,200
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. 36,664,600 45,845,400 82,510,000
CCCC Yongjia Construction Development Co., Ltd. 172,000,000 52,000,000 224,000,000
CCCC Zhenhua Lvjian Technology (Ningbo) Co., Ltd. 4,000,000 4,000,000
ZPMC Latin America Holding Corporation 3,307,850 3,307,850
ZPMC GmbH Hamburg 207,940 207,940
ZPMC Fuzhou Offshore Construction Co., Ltd. 10,000,000 10,000,000
CCCC (Dongming) Investment and Construction Co., Ltd. 49,000,000 21,000,000 70,000,000
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 7,230,010,801 173,914,280 7,403,925,081
(2) Investment in joint ventures and associates
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase/decrease in the current period Balance of
provision
Profit or Cash for
December 31, Adjustment December 31,
Invested entity loss on Changes dividends Provision impairment
2021 Further Reduced of other 2022
investments in other or profit for Others as at
investment investment comprehensive
under the equity declared to impairment December
income
equity method be distributed 31, 2021
I. Joint ventures
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 323,033,681 76,902,400 -35,000,000 364,936,081
ZPMC Mediterranean Liman Makinalari Ticaret Anonim
396,692 396,692
Sirketi
Sub-total 323,430,373 76,902,400 -35,000,000 365,332,773
II. Associates
CCCC Financial Leasing Co., Ltd. 608,658,400 65,045,550 625,583 674,329,533
CCCC Yancheng Construction Development Co., Ltd. 418,516,242 418,516,242
CCCC Estate Yixing Co., Ltd. 192,917,083 13,878,398 206,795,481
CCCC South American Regional Company SARL 167,286,613 11,622,933 15,481,457 194,391,003
China communications Construction USA Inc. 55,146,147 197,865 4,636,853 59,980,865
CCCC Photovoltaic Technology Co., Ltd. - 34,765,693 54,070 34,819,763
ZPMC Changzhou Coatings Co., Ltd. 19,729,266 3,299,000 -4,588,107 18,440,159
CCCC Xiongan Urban Construction Development Co., Ltd. 7,512,971 27,362 7,540,333
Shanghai Ocean Engineering Equipment
5,820,675 -312,664 5,508,011
Manufacturing Innovation Center Co., Ltd.
CCCC Marine Engineering & Technology Research
17,111,832 -17,165,758 53,926
Center Co., Ltd.
Sub-total 1,492,699,229 34,765,693 -17,165,758 93,866,440 20,743,893 -4,588,107 1,620,321,390
Total 1,816,129,602 34,765,693 -17,165,758 170,768,840 20,743,893 -39,588,107 1,985,654,163
Other description:
None
199
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 23,815,340,356 21,476,119,929 21,041,533,485 19,594,709,968
Other business 2,351,859,784 2,239,174,472 1,947,957,763 1,718,890,668
Total 26,167,200,140 23,715,294,401 22,989,491,248 21,313,600,636
(2) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Classification of Contract XXX-Division Total
Type of goods
Port machinery 19,077,625,724
Heavy equipment 2,583,435,444
Sales of materials and others 2,189,400,559
Steel structure and related income 1,857,271,569
Engineering construction projects 297,007,620
By region of operation
Chinese Mainland 12,866,518,897
Asia (excluding Chinese Mainland) 7,530,460,148
North America 1,894,585,077
Africa 1,315,268,003
Chinese Mainland (export sales) 860,923,310
Europe 695,308,842
South America 535,048,885
Oceania 306,627,754
Market or customer type
Contract type
Revenue recognized at a certain point of time
Port machinery 18,246,841,951
Sales of materials and others 2,189,400,559
Heavy equipment 1,699,958,881
Steel structure and related income 902,130,874
Revenue recognized in a certain period of time
Heavy equipment 883,476,562
Port machinery 830,783,774
Steel structure and related income 955,140,695
Engineering construction projects 297,007,620
By time of goods transfer
By contract term
By sales channel
Total 26,004,740,916
200
2022
Description of income from contracts:
□Applicable √Not applicable
(3) Performance obligations
□Applicable √Not applicable
(4) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
None
5 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in Amount incurred in the
Item
the current period previous period
Income from long-term equity investments calculated under cost method 441,136,785 56,655,365
Income from long-term equity investment calculated under the equity method 170,768,840 232,454,488
Investment income from disposal of long-term equity investment -95,166 167,833,181
Investment income from held-for-trading financial assets during the holding period 13,458,094 1,112,889
Dividend income from other equity instrument investment during holding 335,790 7,835,826
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 5,843 819,204,693
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
Investment income from disposal of other non-current financial assets 1,050,134
Losses on derecognition of financial assets measured at amortized cost -20,135,378
Others -1,455,319
Total 604,019,489 1,286,146,576
Other description:
None
6 Others
□Applicable √Not applicable
XVIII 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 66,091,456
Tax refunds, exemptions and reductions with ultra vires approval or without official approval documents
Government grants included in the current profit or loss (except for the one closely related to the operations
106,415,947
of the Company and gained constantly at a fixed amount or quantity according to certain standard)
Capital occupation fees charged to the non-financial enterprises and included in current profit or loss
201
Item Amount Remarks
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
Profit or loss from non-monetary assets exchange
Profit or loss from the assets entrusted to others for investment or management
Provisions for impairment of assets accrued due to force majeure such as natural disaster
Profit or loss from debt reorganization
Cost for enterprise reorganization, such as staffing expenses and integration fees
Profit or loss in excess of the fair value generated in transaction with unfair price
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 the contingencies, unrelated to the normal business of the Company
Profit or loss on changes in fair values of held-for-trading financial assets, derivative financial assets, held-
for-trading financial liabilities and derivative financial liabilities, and investment income obtained from disposal
of held-for-trading financial assets, derivative financial assets, held-for-trading financial liabilities, derivative -214,877,284
financial liabilities and other credit investment, except for effective hedging operations associated with the
company’s normal operations
Reversal of provision for impairment of receivables and contract assets subject to separate impairment test
Profit or loss from external entrusted loans
Profit or loss on changes in fair value of investment property by follow-up measurement in fair value mode
Impact on current profit or loss due to one-off adjustment to current profit or loss according to the
requirements of tax and accounting laws and regulations
Custody fees of entrusted operation
Other non-operating revenue and expenses except for the above-mentioned items 27,301,769
Other profit or loss items that conform to the definition of non- recurring profit or loss
Less: Affected amount of income tax 11,561,380
Affected amount of minority equity 16,268,600
Total -42,898,092
For the non-recurring profit or loss items defined by the Company according to the “Explanatory Announcement on
Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss”, and the recurring
profit or loss items defined by the non-recurring profit or loss items listed in “Explanatory Announcement on Information
Disclosure of Companies Offering Securities to the Public No. 1 – Non-recurring Profit or Loss”, reasons shall be explained.
□Applicable √Not applicable
2 Return on net assets and earnings per share
√Applicable □Not applicable
Earnings per share
Weighted average rate of
Profit in the reporting period Basic earnings Diluted earnings
return on net assets (%)
per share per share
Net profit attributable to ordinary shareholders of the Company 2.39 0.07 0.07
Net profit attributable to ordinary shareholders of the Company
2.68 0.07 0.07
after deducting non-recurring profits and losses
202
2022
3 Differences in accounting data under domestic and overseas accounting standards
□Applicable √Not applicable
4 Others
□Applicable √Not applicable
Chairman: Liu Chengyun
Date of reporting approved by the Board of Directors: March 30, 2023
Revision information
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