Shanghai Zhenhua Heavy Industries Co., Ltd.
2012 Financial Statements Notes Supplementary Material
(Monetary Unit: RMB, except for specified otherwise)
I Non-recurring gains/losses statements
2012 2011
Gains/(losses) from disposal of non-current assets 97,051,399 309,460,277
Government subsidy into current P&L 28,730,126 64,641,129
Gains/losses from fair value change resulted from
holding tradable financial assets and tradable financial
liabilities; investment income from disposal of tradable
financial assets, tradable financial liabilities and
financial assets available for sale, except for valid
hedging related with regular operation 143,917,526 101,066,137
Net amount of other non-operating income and expenses
except for above (13,639,165) 7,112,466
256,059,886 482,280,009
Impact of income tax (39,813,723) (71,964,268)
Impact of minority gains/losses (after tax) (622,804) (2,141,455)
215,623,359 408,174,286
Non-recurring gains/losses statements preparation basis
In accordance with CSRC Public Listed Company Information Disclosure Explanatory
Announcement No. 1 –Non-recurring Gains/losses [2008], non-recurring gains/losses refer to
those from transactions or events not directly related with the Company’s normal operations or
although related with normal operation but affecting users of statements to make property
judgment over operating result or profitability due to their special nature or accidental nature.
II Earning Ratio of Net Assets & Earnings/(Loss) per Share
Earnings/(Loss) per Share
Earning Ratio of Net
Assets（%） Basic Earning/(loss) Diluted Earning/(loss)
per Share per Share
2012 2011 2012 2011 2012 2011
(loss) /net profit
belonging to
shareholders of
common shares (7.09%) 0.20% (0.24) 0.01 (0.24) 0.01
Net loss
attributable to
shareholders of
common shares
after deducting
non-recurring
gains/losses (8.56%) (2.48%) (0.29) (0.09) (0.29) (0.09)
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Shanghai Zhenhua Heavy Industries Co., Ltd.
2012 Financial Statements Notes Supplementary Material
(Monetary Unit: RMB, except for specified otherwise)
III Abnormality in major accounting statements and reasons
Analysis of items whose date movement over 30% (inclusive) in consolidated statements
and taking up to 5% (inclusive) of total daily assets in the consolidated statements or
taking up to 10% (inclusive) of total profit in the report period:
B/S Item Dec. 31, 2012 Dec. 31, 2011 Movement Note
Consolidation Consolidation Amount %
Monetary capital 5,380,769,224 2,053,780,508 3,326,988,716 162% (1)
Tradable financial assets 26,009,477 61,678,770 (35,669,293) -58% (2)
Bills receivable 115,069,863 80,556,568 34,513,295 43% (3)
Interest receivable 33,231,552 - 33,231,552 100% (4)
Account receivable 3,710,721,111 4,788,249,121 (1,077,528,010) -23% (5)
Other receivables 413,305,303 809,660,285 (396,354,982) -49% (6)
Stock 7,581,683,025 6,186,736,599 1,394,946,426 23% (7)
Completed not settled 6,620,155,339 7,385,580,108 (765,424,769) -10% (8)
Other current assets 1,000,000,000 - 1,000,000,000 100% (9)
Long-term equity
investment 203,719,472 152,874,005 50,845,467 33% (10)
Real estate as investment 402,411,440 - 402,411,440 100% (11)
Fixed assets 14,075,197,757 14,254,180,211 (178,982,454) -1% (12)
Construction in progress 3,692,553,744 4,552,618,260 (860,064,516) -19% (13)
Short - term loans 11,936,687,998 8,036,435,881 3,900,252,117 49% (14)
Tradable financial liabilities - 2,289,600 (2,289,600) -100% (15)
Bills payable 980,906,529 577,862,463 403,044,066 70% (16)
Accounts payable 2,603,418,685 2,255,724,884 347,693,801 15% (17)
Prepayment received 1,035,763,588 115,627,343 920,136,245 796% (18)
Settled but work not
completed 2,389,804,893 1,946,769,101 443,035,792 23% (19)
Taxes and charges
payable (46,966,814) (461,588,744) 414,621,930 -90% (20)
Dividends payable 33,825,412 53,453,390 (19,627,978) -37% (21)
Other payables 292,150,492 869,378,012 (577,227,520) -66% (22)
Non-current liabilities due
within one year 3,667,922,000 3,571,294,900 96,627,100 3% (23)
Long-term loans 873,684,500 3,083,527,600 (2,209,843,100) -72% (24)
Bonds payable 7,984,665,674 7,978,615,674 6,050,000 0% (25)
Expected liabilities 193,307,685 133,639,971 59,667,714 45% (26)
Capital stock 4,390,294,584 4,390,294,584 - 0% (27)
Capital reserve 5,632,275,644 5,619,048,786 13,226,858 0% (28)
Undistributed profit 2,668,221,534 3,711,887,375 (1,043,665,841) -28% (29)
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Shanghai Zhenhua Heavy Industries Co., Ltd.
2012 Financial Statements Notes Supplementary Material
(Monetary Unit: RMB, except for specified otherwise)
III Abnormality in major accounting statements and reasons (Cont’d)
P/L Item Dec. 31, 2012 Dec. 31, 2011 Movement Note
Consolidation Consolidation Amount %
Operating income 18,255,152,096 19,129,251,012 (874,098,916) -5% (30)
Operating cost (17,362,670,351) (18,171,294,303) 808,623,952 -4% (30)
General expenses (1,126,863,747) (1,130,888,776) 4,025,029 0% (31)
Financial expenses – net
amount (680,506,612) 151,425,776 (831,932,388) -549% (32)
Asset impairment provision (394,362,789) (269,782,394) (124,580,395) 46% (33)
Gains from fair value
movement - net (33,379,693) 33,444,020 (66,823,713) -200% (34)
Investment income 141,093,032 13,049,092 128,043,940 981% (35)
Non – operating income 132,357,962 385,977,803 (253,619,841) -66% (36)
Non – operating expenses (20,215,602) (4,763,931) (15,451,671) 324% (37)
Corporate tax expenses 72,132,581 (18,109,717) 90,242,298 -498% (38)
Net (loss) / profit
attributable to shareholders
of parent company (1,043,665,841) 30,294,335 (1,073,960,176) -3545% (39)
Minority interest (55,392,041) (639,339) (54,752,702) 8564% (40)
(1) Monetary capital Monetary capital increased mainly because the Group in report
year strengthened efforts at the collection of accounts
receivable and increased time deposit for the purpose of
acquiring short-term loans.
(2) Tradable financial Tradable financial assets decreased mainly due to delivery of
assets forward forex contracts upon maturity.
(3) Bills receivable Notes receivable increased mainly because the Group
increased notes receivable endorsed to clear purchase
payment.
(4) Interest receivable Interest receivable increased mainly because in report period
the Group accrued undue interest of new fixed-term loans.
(5) Account receivable Accounts receivable decreased mainly because in report year
sales income decreased and in the mean time strengthened
collection of accounts receivable.
(6) Other receivables Other receivables decreased mainly because in report period
the Group received levy compensation on land and real estate
from Changxing Land Reserve Center.
(7) Inventory Inventory increased mainly because in report period the Group
increased raw material purchase as a result of heavy marine
project development.
(8) Work completed Work completed payment not cleared decreased mainly
payment not cleared
because in report year business volume declined and thus start-
ups of projects dropped.
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Shanghai Zhenhua Heavy Industries Co., Ltd.
2012 Financial Statements Notes Supplementary Material
(Monetary Unit: RMB, except for specified otherwise)
(9) Other current assets Other current assets increased mainly because in report period
the Group purchased short-term bank financing products.
(10) Real estate as Real estate as investment increased mainly because in report
investment period the Group converted part of the office buildings,
production base and related land use right for leasing.
(11) Long-term equity Long-term equity investment increased mainly because in
investment report period the Company had more external investment in
corporate and gains from associates and joint ventures
adjusted on equity basis.
(12) Fixed assets Fixed assets decreased mainly because in report year regular
depreciation of fixed assets, disposal of part of production
equipment, converted part of the office buildings, production
base and related land use right for leasing, carried forward to
real estate as investment.
(13) Construction in progress Construction in progress decreased mainly because in report
year the Company carried forward Dongfang Road office
building, Nantong production base infrastructure construction
and the base’s large equipment to fixed assets.
(14) Short-term loans Short-term deposits increased mainly because the Company
borrowed new loans from banks.
(15) Trading financial Tradable financial liabilities decreased mainly because
liabilities forward foreign exchange contract delivered upon maturity.
(16) Notes payable Notes payable increased mainly because in report period the
Group issued notes to pay for materials.
(17) Accounts payable Accounts payable increased mainly because in report period
the Group increased payables for purchase of materials and
product manufacturing as a result of further efforts on
development of heavy marine projects.
(18) Prepayments received Prepayment received increased mainly because the Group
received advances for certain new contracts from clients in
report year.
(19) Work not completed, Work not completed, payment cleared increased mainly
payment cleared because in report period the Group settled new projects.
(20) Taxes and charges Taxes and charges payable increased mainly because in
payable report period the Group issued more invoices for domestic
projects and meanwhile timely filed tax return for to-be-
cleared VAT.
(21) Dividends payable Dividends payable decreased mainly because paid income
tax on behalf of shareholders.
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Shanghai Zhenhua Heavy Industries Co., Ltd.
2012 Financial Statements Notes Supplementary Material
(Monetary Unit: RMB, except for specified otherwise)
(22) Other payables Other payables decreased mainly because the Group timely
filed tax return for to-be-cleared VAT.
(23) Non-current liabilities Non-current liabilities due within one year increased mainly
due within one year: because partial long-term loans would be due within one year so
they were reclassified into non-current liabilities due within one
year
(24) long-term loans Long-term loans decreased mainly because partial long-term
loans would be due within one year so they were reclassified
into non-current liabilities due within one year.
(25) Bonds payable Bonds payable increased mainly because of amortization of
issuance cost in report year.
(26) Expected liabilities Expected liabilities increased mainly because of increase in
after-sales service cost as a result of increase of delivery of
completed machinery projects.
(27) Capital stock Capital stock remained the same as that of prior year end.
(28) Capital stock Capital reserve increased mainly because fair value of financial
assets available for sale at period end increased
(29) Undistributed profit Undistributed profit decreased mainly because of net loss in
report year.
(30) Operating income Operating income saw a reduction compared with that in the
and cost previous year, mainly because of that under the influence of
macro-economic environment new orders the Group took
declined in this year, particularly due to decline in off-shore
heavy duty products and steel structure products.
Average gross margin of products increased mainly due to the
Group’s strict control of production costs in report year.
(31) General expenses: General expenses decreased mainly because the Group’s
employee remuneration and expenses decreased in report year.
(32) Financial expense– Financial expenses increased mainly because the Group
net amount suffered from decrease of exchange income and increase of
interest cost as a result of RMB appreciation against US dollars.
(33) Asset impairment Asset impairment loss increased mainly because of increase of
loss bad debt loss, inventory impairment loss and expected contract
loss with the Group.
(34) Fair value movement Decrease of gains/losses of fair value change is mainly because
gains-net amount of delivery upon maturity and reversal of financial assets
available for sale.
(35) Investment income Investment income increased mainly because investment
income from financial assets available for sale the Group held in
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Shanghai Zhenhua Heavy Industries Co., Ltd.
2012 Financial Statements Notes Supplementary Material
(Monetary Unit: RMB, except for specified otherwise)
report year increased.
(36) Non-operating Non-operating decreased mainly because in report year
income compensation income recognized with the Group from levy of
the Industrial Park completed with Changxing Land Reserve
Center decreased.
(37) Non-operating Non-operating expenses increased mainly because in report
expenses year loss from disposal of fixed assets and other non-operating
expenses increased.
(38) Corporate income tax Corporate income tax expenses decreased mainly the Group
expenses recognized deferred income tax assets as a result of loss in
report year.
(39) Net (loss) / profit Loss attributable to shareholders of parent company decreased
attributable to mainly because the Group suffered a loss in report year.
shareholders of
parent company
(40) Minority interest Increased due to current loss of non-wholly-owned subsidiaries
of the Group in report year.
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