Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co., Ltd.
Annual Report 2022
CONTENTS
Section ISection IISection IIISection IVSection VSection VISection VIISection VIIISection IXSection X
DenitionsCompany Prole and Principal Financial IndexesManagement Discussion and AnalysisCorporate GovernanceEnvironmental and Social ResponsibilityImportant EventsChanges in Shares and Shareholders' SituationPreference SharesBondsFinancial Report
List of Reference Documents
Financial statements a?xed with the signature and seal of legalrepresentative, person in charge of accounting work and person incharge of accounting agency.Original auditors' report stamped by the accounting rm and signedand stamped with the certied public accountants.Original copies of the documents and announcements of theCompany published on the newspaper designated by the CSRC inthe reporting period.
2222
The Board of Directors, Board of Supervisors, directors, supervisors and senior executivesof the Company hereby guarantee the truthfulness, accuracy and completeness of thecontents carried in this annual report, guarantee no false record, serious misleadingstatement or great omission carried in this annual report and guarantee to assume thelegal responsibilities jointly and separately.All directors of the Company are present at the board meeting.Ernst & Young Hua Ming LLP issues the standard audit report without qualied opinion forthe Company.Liu Chengyun, the chairman of the Company, Zhu Xiaohuai, person in charge ofaccounting work, and Sun Guangbo, person in charge of accounting agency (accountantin charge) hereby declare that the financial statements in this annual report are true,accurate and complete.Proposal for prot distribution or common reserves capitalizing during the reporting periodreviewed by the board of directorsAs audited by Ernst & Young Hua Ming LLP, the Company achieved a net profitattributable to the owners of the parent company of approximately RMB 372 million in2022. As at December 31, 2022, the undistributed profit of the parent company wasapproximately RMB 2.746 billion. The Board of Directors of the Company, taking intoaccount the Company’s business plan and capital demand in 2023, has prepared a protdistribution proposal for 2022: neither prot distribution nor transfer of the capital publicreserves into paid-in capital. The prot distribution proposal has yet to be submitted to the2022 Annual General Meeting of Shareholders for consideration and approval.Risk declaration of forward-looking statements
√ Applicable □ Not Applicable
The forward-looking descriptions of future plans and development strategies covered inthis report do not constitute substantial commitments by the Company to investors, andinvestors should be aware of the investment risks.Does the Company have non-operating funds occupied by the holding shareholder and itsrelated parties?NoDoes the Company provide the external guarantees in breach of the stipulated decision-making procedure?NoWhether more than half of the directors cannot guarantee the authenticity, accuracy andcompleteness of the annual report disclosed by the Company?NoMajor Risk WarningThe company has described the related potential risks in this annual report. Investors maypay attention to the same. Please refer to “Management Discussion and Analysis” and relatedchapters for the risks the company may be confronted with in the future development.Others
□Applicable √ Not Applicable
Important Notice
2022
The terms used in this report shall be dened as follows, unless otherwise specied:
Denitions of high frequency termsCompany, the Company, ZPMCRefers toShanghai Zhenhua Heavy Industries Co., Ltd.CCCCRefers toChina Communications Construction Company Ltd.CCCGRefers toChina Communications Construction Group Co., Ltd.CCCG HKRefers toCCCG (HK) Holding Limited
“1544” overall development strategyRefers to
“1” refers to firmly anchoring the goal of building a globallycompetitive technology-oriented, management-orientedand quality-oriented world-class equipment manufacturingenterprise. “5” refers to working hard on “ve types of business”,continuously consolidating the traditional primary business of portmachinery, offshore engineering and shipping and installation,accelerating the development of growth business such assteel structure, offshore wind power, sky parking and so on,multiplying the after-market services and service innovation,moderately developing the financial investment, making effortsto explore new businesses with broad prospects and competitiveadvantages in the industry. “4” refers to solidly promoting “fourmain lines”, continuing to strengthen innovation-driven leadership,sustaining deepening the enterprise reform, accelerating themanagement 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 ofmarket thinking, improving the ability of innovative thinking, andimproving the ability of risk control thinking.Reporting periodRefers toFrom Jan. 1, 2022 to Dec. 31, 2022
I. Denitions
Section IDefinitions
4444
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 EnglishSHANGHAI ZHENHUA HEAVY INDUSTRIES CO., LTD.Abbreviation of the Company name in EnglishZPMCLegal representative of the CompanyLiu Chengyun
Section IICompany Profile and Principal Financial Indexes
2Contact Information
Secretary of the Board of DirectorsNameSun LiAddressNo. 3261, Dongfang Road, ShanghaiTelephone021-50390727Fax021-31193316E-mailIR@ZPMC.COM3Basic InformationRegistered addressNo.3470, Pudong South Road, ShanghaiChanges of registered addressN/AO?ce addressNo. 3261, Dongfang Road, ShanghaiPostal code of o?ce address200125Websitehttp://www.zpmc.comE-mailIR@ZPMC.COM
4Information disclosure and placement locationNewspaper and website for disclosure of the annual report
Shanghai Securities News, www.cnstock.comHong Kong Wen Wei Po, www.wenweipo.comStock exchange website for disclosure of the annual reportwww.sse.com.cnPlacement location of the annual reportO?ce of the board of directors
2022Stock information
Stock InformationStock typeStock exchangeStock abbreviationStock codeStock abbreviation before changeA-shareShanghai Stock Exchange (SSE)Zhenhua Heavy600320ZPMC IndustriesB-shareShanghai Stock Exchange (SSE)Zhenhua B-share900947-
Other relevant information
Public accountingrm engaged by theCompany (domestic)
NameErnst & Young Hua Ming LLPO?ce address
Room 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1East Changan Street, Dongcheng District, BeijingSigned by the AccountantsGao Chong, Gu Chengli
(I) Main accounting dataMain accounting data and nancial indexes in recent three years
Unit: Yuan Currency: CNYMain accounting data20222021
Year-on-yearchange (%)
2020Operating revenue30,191,792,98725,977,976,96816.2222,655,141,652Net prot attributable to the shareholders of the listedcompany
371,937,232439,839,245-15.44422,240,299Net prot attributable to the shareholders of the listedcompany after deducting the non-recurring prots and losses
414,835,324-440,186,675N/A-58,462,207Net cash ows from operating activities2,568,564,0232,119,639,51821.18819,389,020
At the end of2022
At the end of2021
Year-on-yearchange (%)
At the end of
2020Net assets attributable to the shareholders of the listedcompany
15,168,470,11714,990,218,6311.1914,570,822,140Total assets78,213,168,72378,332,081,199-0.1579,320,644,540(II) Major nancial indexes
Major nancial indexes20222021Year-on-year change (%)2020Basic earnings per share (RMB/share)0.070.08-12.500.08Diluted earnings per share (RMB/share)0.070.08-12.500.08Basic earnings per share after deducting non-recurring prots and losses (RMB/share)
0.07-0.09N/A-0.01Weighted average ROE (%)2.392.90-0.51 3.04Weighted average ROE after deducting non-recurringprots and losses (%)
2.68-3.48+6.16 -0.43
Explanations about the main accounting data and nancial indexes in the past 3 years as at the end of the reporting period
√ Applicable □ Not Applicable
The change in net prot attributable to the shareholders of the listed company after deducting the non-recurring prots andlosses was mainly due to the decrease in the impact of items for deducting the non-recurring prots and losses.The change in basic earnings per share after deducting the non-recurring prots and losses was mainly due to the decreasein the impact of items for deducting the non-recurring prots and losses.The change in the net cash flows from operating activities was mainly due to the decrease in cash payment for goodspurchased and services received by the Company.Di?erences in accounting data under domestic and overseas accounting standards(I) Di?erence in net prots and net assets attributable to the shareholders of the listed company in the nancialstatements synchronously disclosed under international and China’s accounting standards
□Applicable √ Not Applicable
(II) Di?erence in net prots and net assets attributable to the shareholders of the listed company in the nancialstatements synchronously disclosed under foreign and China’s accounting standards
□Applicable √ Not Applicable
(III) Explanation for di?erences between the domestic and foreign accounting standards:
□Applicable √ Not Applicable
Main nancial data in 2022 by quarter
Unit: Yuan Currency: CNYQ1(Jan. to Mar.)
Q2(Apr. to Jun.)
Q3(Jul. to Sep.)
Q4(Oct. to Dec.)Operating revenue4,770,429,0597,725,937,6286,482,964,26711,212,462,033Net prot attributable to the shareholders of the listed company15,292,041114,51751,922,863304,607,811Net prot attributable to the shareholders of the listed companyafter deducting the non-recurring prots and losses
198,022,896-127,450,338162,623,826181,638,940Net cash ows from operating activities-891,161,550761,099,344659,686,0992,038,940,130
Explanations about the di?erences between the quarterly data and the data in periodically disclosed reports
□Applicable √ Not Applicable
Non-recurring prot and loss items and amount
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYNon-recurring prot and loss items
Amount in2022
Note (ifapplicable)
Amount in2021
Amount in
2020Prot or loss from disposal of non-current assets66,091,456240,161,56936,620,758Government subsidies included in current prots and losses exceptfor government subsidies closely related to the Company business, inline with national policies and obtained by quota or quantity at uniedstate standards
106,415,94781,153,20697,849,026Prot or loss on changes in fair values of held-for-trading nancialassets, derivative nancial assets, held-for-trading nancial liabilitiesand derivative nancial liabilities, and investment income obtainedfrom disposal of held-for-trading nancial assets, derivative nancialassets, held-for-trading nancial liabilities, derivative nancialliabilities and other credit investment, except for e?ective hedgingoperations associated with the Company’s normal operations
-214,877,284643,903,925356,116,979Reversal of provision for impairment of receivables subject toseparate impairment test
94,986,60078,007,100
2022
Non-recurring prot and loss items
Amount in
2022
Note (ifapplicable)
Amount in2021
Amount in
2020Other non-operating revenue and expenses except for the above-mentioned items
27,301,76912,089,0084,718,614Less: A?ected amount of income tax11,561,380179,212,45777,383,660A?ected amount of minority equity (after tax)16,268,60013,055,93115,226,311Total-42,898,092880,025,920480,702,506Description of the recurring profit or loss items defined according to the definitions in “Explanatory Announcementon Information Disclosure of Companies O?ering Securities to the Public No. 1 – Non-recurring Prot or Loss”, as well asthe recurring prot or loss items dened by the non-recurring prot or loss items listed in “Explanatory Announcement onInformation Disclosure of Companies O?ering Securities to the Public No. 1 – Non-recurring Prot or Loss”
□Applicable √ Not Applicable
Items measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYItem
December
31,2021
December
31,2022
Currentchange
Impact on
currentprotsJiangxi Huawu Brake Co., Ltd.420,227,264199,652,466-220,574,798-185,262,798Qingdao Port International Co., Ltd.364,099,519348,072,750-16,026,76913,048,642China Railway Signal & Communication Corporation Limited286,756,480280,317,612-6,438,86815,544,255Shenwan Hongyuan Group Co., Ltd.1,119,345870,116-249,229-165,057COSCO Shipping Holdings Co., Ltd.72,893,03640,132,120-32,760,916-16,614,465Equity instrument investment8,438,2788,438,27800Hunan Fengri Power & Electric Co., Ltd.27,201,19030,657,8623,456,672335,790CCCC Highway Bridges National Engineering ResearchCentre Co., Ltd.
20,644,01822,151,6701,507,6520CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
8,673,0498,938,170265,1210Shenyang Weichen Crane Equipment Co., Ltd.6,003,3445,205,300-798,0440Ningbo Weilong Port Machinery Co., Ltd.2,809,8565,825,1953,015,3390ZPMC Longchang Lifting Equipment Co., Ltd.948,588697,422-251,1660Total1,219,813,967950,958,961-268,855,006-173,113,633
Others
□Applicable √ Not Applicable
I. Discussion and analysis of the performance
In 2022, the Company adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics fora 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, e?ectively fullled the duties and obligations under the CompanyLaw and the Articles of Association of the Company, closely focused on the “1544” overall development strategy, upheldthe underlying principle of pursuing progress while ensuring stability, paid close attention to the management improvement,cost reduction and e?ciency increase and reform and innovation, successfully overcame the internal and external adverseimpacts, completed the annual tasks and targets in all respects, and continued to promote the high-quality development ofthe enterprise.In accordance with the requirements of the three-year action plan for state-owned enterprise reform, the Company haddeepened 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-orientedoperation mechanism, so as to continuously stimulate the endogenous power of the enterprise to become stronger, betterand bigger. The construction of the governance subjects was continuously strengthened, which optimized the governancesystem and further improved the governance e?ectiveness; the at reform of the company’s organization integrated andreorganized the internal resources and further improved the operation and management e?ciency; the identication of newperformance subjects consolidated the responsibility for performance and further enhanced the production managementlevel; the “three-system” reform was accelerated on a continuing basis, which mobilized the enthusiasm of the cadre teamfor the undertakings and further released the operation vigor. In reform, it made strong moves across the board, securedmajor advances in many areas, drove deeper in pursuing progress and made achievements in implementation, and manyimportant indicators of the Company were improved signicantly, and the high-quality development of the enterprise reacheda new stage.
During the reporting period, the Company realized the operating revenue amounting to RMB 30.192 billion, representinga year-on-year increase of 16.22%; the net prot attributable to the parent company after deducting the non-recurring protsand losses was RMB 0.415 billion, with an increase of RMB 0.855 billion over the same period last year. The new contractvalue of port machinery business was USD 3.385 billion, with an increase of 5.48% over the same period last year. Newcontract value of marine engineering and steel structure-related businesses amounted to USD 2.161 billion, with an increaseof 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 machinerybusiness was further consolidated, new breakthroughs were made in the development of the o?shore engineering market,steel structure and wind power business achieved faster growth, shipping business, parking business, after-market servicebusiness and new business were promoted in an orderly manner, and the operating capacity was steadily improved. Thecost accounting and control system was established, the construction of a comprehensive budget constraint system wasstrengthened, the whole process supervision of cost management of key projects was carried out, and the cost controlcapability was e?ectively enhanced. The Company actively explored the new model of “open competition mechanism” thatintegrated scientic and technological breakthrough and incentive to select the best candidates to undertake key researchprojects and promoted digitalization, standardization and modularization in an orderly manner, so as to continuously upgradethe ability of scientic 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 uidity and change, andour country has entered a period of development in which strategic opportunities, risks, and challenges were concurrent anduncertainties and unforeseen factors were rising. As an export-oriented enterprise, the Company was still confronted with thechallenges such as supply chain security and stability and bottleneck problems in technical breakthrough. The 20th NationalCongress of the Communist Party of China clearly dened the goals and tasks for the cause of the Party and the countryon a new journey in a new era, and made major plans to promote high-standard opening-up, accelerate the constructionof a manufacturing power, and accelerate the green transformation of the development mode. The Central Economic WorkConference 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 thedigital economy.
From the perspective of the industrial situation of the Company, the demand for larger, more efficient, lighter, lowercarbon and more intelligent port machinery was more obvious. The major port operators have successively formulated theaction plans for decarburization and emission reduction before 2030, and the demand for carbon reduction of equipment
Section IIIManagement Discussion and Analysis
2022would increase in the future. The Company would actively carry out research on high-end technology, cutting-edgetechnology 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 onthe response speed of maintenance service, after-sales service and spare parts service of the Company. In the o?shoreengineering business, a?ected by the Russia-Ukraine War, international crude oil price fell down in uctuation after risingrapidly in March 2022. The global oil and gas o?shore equipment market was in the recovery cycle, but the market outlookwas still in “wait-and-see”. The Company’s o?shore engineering business would continue to grasp its own advantages, dowell in di?erentiation development, and actively expand new tracks and international market. The Company closely focusedon the key elds of the global o?shore engineering business, national demand for capital construction and market demandfor large equipment, did well in the supply of large-scale o?shore equipment and core support and services. The o?shorewind power industry was gradually maturing, the cost was gradually decreasing, and the development prospects were good.China was the world’s largest o?shore wind power market, and the growth space of the average annual new installation ofo?shore wind power was full of potential. Since the state revenue did not subsidize the new o?shore wind power projects anymore, the market competition was becoming more intense, and the Company was making e?orts to seize the developmentopportunities in the wind power business and anchoring on the mature fields to achieve the development by leaps andbounds in the wind power business. As to the steel structure business, viewed from a long term, the capital construction suchas 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 cultivatedi?erentiated competitive advantages. The Company was continually exploring the emerging businesses, parking businessin line with the strategic orientation of “smart city” and “smart transportation”, and was in an important period of policysupporting, resource integration and technology integration, no leading enterprise was formed at home. So, it was necessaryto strengthen scientic and technical innovation and market development to realize the rapid development and growth. Thenew energy business and elevator installation business for the old buildings had good market development space and policysupporting.III. Business of the Company during the reporting periodThe Company is a well-known heavy equipment manufacturer and a state-owned company listed on A and B shares,and its holding company is China Communications Construction Group Co., Ltd., which is listed in Fortune global 500.Headquartered in Shanghai, with several production bases in Shanghai and Suzhou, as well as several overseas branchesworldwide, the Company had more than twenty 60,000t to 100,000t complete transport vessels which could transportcomplete large products to the world. At present, the products of the Company have been successfully sold to 106 countriesand regions in the world.The Company upheld the goal of building a world first-class equipment manufacturer with global competitivenessin technology, management and quality, focused on steady growth, project performance, cost reduction and efficiencyincrease, reform and innovation, risk prevention and control and other key work, continued to consolidate the traditional corebusiness such as port machinery, o?shore engineering, shipping, etc., continued to accelerate the development of “largeand heavy” steel structure, o?shore wind power, smart parking and other growth-oriented business, multiplies developmentand innovation and post-market service business, moderately developed investment and nancial business, and strived toexplore new business.During the reporting period, the port machinery business continued to consolidate its core strength. The market shareof the Company’s shore bridge products remained up to 70%,maintaining No.1 in the world for 25 consecutive years. Thesigning of Shuifu Port contract represented an important step of the Company in the inland river port machinery market.The o?shore engineering business focused on the layout optimization. The Company successfully won the bids for theprojects, including 4,000t revolving derrick barge of CCCC Third Harbor Engineering Co., Ltd. and 15,000m
LNG cleanenergy driven trailing suction hopper dredger of CCCC Shanghai Dredging Co., Ltd. The Company also made great progressin destocking the o?shore engineering equipment, and successfully achieved the bareboat chartering and reletting of in-handdrilling platforms.
The steel structure business showed its brand reputation. The largest cable-stayed bridge in West Africa, the CocodyBridge in C?te d'Ivoire, was successfully closed; Hong Kong’s Tseung Kwan O Cross Bay Bridge and Xiamen Xiang’anBridge were opened to tra?c; Peljesac Bridge in Croatia was successfully opened to tra?c 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 offoundation jacket of Seagreen wind power in the North Sea on the return journey to improve the ratio of operation time tototal time and made e?orts to maximize the benet.
Wind power business achieved faster growth. The Company successfully won the bid for 1,800t and 2,500t wind powerinstallation platform and the supporting equipment of CCCC Third Harbor Engineering Co., Ltd., with the amount of orderover RMB 2.6 billion, which was the o?shore wind power project with the largest sum of bid-winning amount in recent year. Itcompleted the construction and lifting of several booster stations and jackets as well as the manufacture of core componentsfor wind power equipment.
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Parking business actively cultivated the characteristics. The Company had won the bids for the mechanical parkinggarage project of CCCC First Highway Consultants Co., Ltd., the mechanical parking garage project of Huawei Bus Stationof Chengdu Public Transport Group Co., Ltd. and the mechanical parking garage project of Chongqing Lijia Public ParkingBuilding. Among them, the mechanical parking garage project of Huawei Bus Station of Chengdu Public Transport GroupCo., Ltd. rstly adopted the two-story simple bus mechanical parking equipment researched and developed by the Company,which satised 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 businesscompleted comprehensive targets. In the new energy business, it collaborated to establish CCCC Photovoltaic TechnologyCo., Ltd., completed the investment in capital, participated in 3 external tendering projects, and achieved the annualoperation objectives. In the business of the elevator installation for the old buildings, the trial application of the new materialsand new technology achieved good results. In the prefabricated steel structure business, the project of upgrading andrenovating 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
Leading market position
The Company had independently developed new products and technologies such as the world's rst double 40-foot containershore bridge, full-auto double-trolley shore bridge and two-way anti-swing system, which had promoted the technical upgrade ofthe automated container terminals in the world and become the global trendsetter of port machinery development. The Companyhad successfully built China's rst automated terminal --- Xiamen Ocean Gate Automated Terminal of COSCO, Asia's rst full-autoterminal ---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 innearly 60 automated terminal projects at home and abroad, accounting for more than 70% of automated terminals worldwide. TheCompany manufactured the world’s largest full-revolving crane vessel, namely “Zhenhua 30” Vessel, helping the construction ofHong 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 di?cult project by the bridge industry in the world.
Leading R&D and innovation capability
As one of the rst innovative enterprises in China and one of the rst national technology innovation demonstrationenterprises, the Company has a national enterprise technology center, a national engineering research center of coreequipment for offshore lifting and pipe-laying, a national postdoctoral research center, a provincial and ministerialacademician and expert workstation, a provincial and ministerial key laboratory and a provincial and ministerial engineeringresearch and development center. By the end of 2022, the Company had applied for a total of 3,524 patents, with 1,940valid patents and 53 international authorizations. The Company insisted on the combination of independent R&D andindustry-university-research, established long-term cooperative R&D relationships with professional research institutions andcustomers, formed a R&D and innovation platform system to support the high-quality development of the enterprise, andbuilt the strategic force for scientic and technological innovation.
“Tiankun” manufactured by the Company made a breakthrough in the core technology of the large-sized self-propelledcutter suction dredger, making China’s design and construction technology of the dredger rank the forefront in the world.The Company independently developed the rst intelligent industrial software in the eld of product design simulation in theindustry, deepening the integration and development of information technology and intelligent equipment. The “IndependentResearch and Development and Industrialization of Large Offshore Cutter Suction Dredging Equipment” won the GrandPrize of the National Award for Science and Technology Progress, the “Research and Application of Key Technologies forthe 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 O?shore Heavy Lifting Equipment” won the SecondPrize of the National Award for Science and Technology Progress.
Global marketing network and digital supply chain platform
The Company gives full play to its advantages in relevant regions at home and abroad, attracting many customers athome and abroad with quality products and services. The Company has constantly strengthened the global network layoutof overseas branches and has established several overseas branches in the world, established good partnership andsolid cooperation foundation with local internationally renowned enterprises and upstream and downstream enterprisesof 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 andcomprehensive way. The Company has a service team composed of more than 1,000 high-quality professionals on the siteall over the world, which can provide e?cient solutions and perfect spare parts service support and supply goods to the worldin the shortest time. Terminexus, a wholly-owned subsidiary of the Company, has built the rst digital supply chain platform inport machinery industry.
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2022V.Performance during the reporting periodDuring the reporting period, the Company’s operating revenue was steadily rising and its protability of main businessimproved signicantly. The Company realized the operating revenue amounting to RMB 30.192 billion, representing a year-on-year increase of 16.22%; the net prot attributable to the parent company after deducting the non-recurring prots andlosses was RMB 0.415 billion, with an increase of RMB 0.855 billion over the same period last year; the basic earnings pershare was RMB 0.07, representing a year-on-year decrease of 12.5%.Analysis of the performance
1.Analysis table of changes in the related items in prot statement and cash ow statement
Unit: Yuan Currency: CNYItem
Amount in the current
period
Amount in the same period of
the last year
Change (%)Operating revenue30,191,792,98725,977,976,96816.22Operating cost26,145,431,98623,498,271,03311.27Selling and distribution expenses176,805,664115,347,43853.28General and administrative expenses835,690,168869,195,529-3.85Financial expenses775,079,877663,827,52216.76Research and development expenditures1,118,337,091883,154,22226.63Net cash ows from operating activities2,568,564,0232,119,639,51821.18Net cash ows from investing activities-83,719,0292,491,026,605-103.36Net cash ows from nancing activities-4,723,159,537-2,979,168,361N/ATaxes and surcharges174,759,457108,179,41761.55Other income104,014,20475,986,08036.89Investment income (loss expressed with “-”)204,359,3581,286,473,690-84.11Credit impairment losses (loss expressed with “-”)-346,156,434-155,561,886N/AAssets impairment losses (loss expressed with “-”)-92,510,638-294,180,123N/AThe change in operating revenue was mainly due to the increase in project delivery of the Company.The change in operating cost was mainly due to the increase in operating cost as a result of the increase in operatingrevenue.The change in selling and distribution expenses was mainly due to the Company’s increased e?orts in market expansionand marketing.The change in general and administrative expenses was mainly due to the decrease in the travel expenses of themanagement personnel of the Company.The change in nancial expenses was mainly due to the increase in exchange losses caused by uctuations in theexchange rate of RMB against USD.The change in research and development expenditures was mainly due to the increase in the expensed expendituresfor research and development projects of the Company.The change in the net cash ows from operating activities was mainly due to the decrease in cash payment for goodspurchased and services received by the Company.The change in net cash ows from investing activities was mainly due to the investment recovery by the Company andthe decrease in the cash received from investment income.The change in net cash ows from nancing activities was mainly due to the repayment of loans by the Company.The change in taxes and surcharges was mainly due to the increase of the Company’s VAT credit into the scope ofsurcharge tax collection in accordance with the “Announcement of the Shanghai Municipal Finance Bureau and ShanghaiMunicipal 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 duringthe period.The change in investment income was mainly due to the decrease in the disposal of held-for-trading nancial assets ofthe 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 inventorydepreciation.Detailed description of major changes in business type, profit composition or profit sources of the Company in thecurrent period
□Applicable √Not Applicable
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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, representinga 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: CNYMain business by productProduct
Operating
revenue
Operating cost
Grossprot rate(%)
Year-on- yearchange in operatingrevenue (%)
Year-on-yearchange inoperating cost (%)
Year-on-yearchange in grossprot rate (%)Port machinery20,731,800,48917,409,218,33516.0318.6011.43+5.41Heavy-duty equipment3,085,509,0982,851,639,1227.58305.92289.89+3.80Engineering constructionprojects
1,613,996,7211,618,116,053-0.26-27.19-28.82+2.28Steel structure and relatedincome
2,731,132,3222,634,320,6873.54-27.26-26.21-1.38Marine transport and others1,863,176,1911,501,571,15119.4128.3730.93-1.57
Main business by regionRegion
Operatingrevenue
Operating cost
Grossprot rate(%)
Year-on- yearchange in operatingrevenue (%)
Year-on-yearchange inoperating cost (%)
Year-on-yearchange in grossprot rate (%)Chinese Mainland15,851,108,23913,645,818,40213.9117.3514.80+1.90Chinese Mainland (exportsales)
968,104,389915,983,7725.3834.6554.85-12.34Europe877,042,956866,747,3051.17-56.97-54.04-6.29Asia (excluding ChineseMainland)
7,867,109,1446,758,431,42314.0976.4360.91+8.28North America2,181,504,5941,935,410,24511.28-32.39-37.07+6.59South America600,144,518432,600,41627.92190.91127.62+20.04Africa1,368,578,6641,184,485,80913.45-1.84-13.51+11.68Oceania312,022,317275,387,97611.74176.8587.86+41.81Explanations 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 ofthe domestic customers.
(2) Analysis table of cost-volume-prot relationship
□Applicable √ Not Applicable
(3) Fulllment of major purchasing contracts and sales contracts
√ Applicable □ Not Applicable
Fulllment of major sales contracts signed by the reporting period
√ Applicable □ Not Applicable
Unit: 10
Yuan Currency: CNYSubject-matter of contractThe opposite party
Totalcontractedvalue
Totalamountperformed
Amountperformedduring thereportingperiod
Amountto beperformed
Normallyperformed
or not
Explanationfor abnormalperformance
of thecontractContract for ECT Terminal ofEast Port, Sri Lanka
Chairman of SriLanka Ports Authority
2.82560.902680.902681.92292YesGeneral Contract forIntelligent HandlingSystem of No. 9-10 Berthin Dalanping South PortOperation Section, DalanpingPort Area, Qinzhou Port
Honggang WharfCo., Ltd. in GuangxiQinzhou Tari? FreePort AreaLegal representative:
Wen Furong
14.37345.749361.237348.62404Yes
1313
2022
Subject-matter of contractThe opposite party
Totalcontractedvalue
Totalamountperformed
Amountperformedduring thereportingperiod
Amountto beperformed
Normallyperformedor not
Explanationfor abnormalperformanceof thecontractProcurement of double-trolleyquayside container cranesfor Phase I project of theContainer Terminal Projectin East Operation Section ofYantian Port Area, ShenzhenPort (secondary)
Hu Chaoyang12.933.8793.8799.051YesNote: Unit of contracted value of Sri Lanka Project: USD 10
Fulllment of major purchasing contracts signed by the reporting period
□Applicable √ Not Applicable
(4) Cost analysis table
Unit: YuanBy productProductItems of cost structure
Amount in thecurrent period
Proportion intotal cost inthe currentperiod (%)
Amount in thesame period of
the last year
Proportion of the onein the same period ofthe last year in totalcosts (%)
Year-on-yearchange
(%)
Explanatory
notesPort machinery
Raw material cost, laborcost and production cost
17,409,218,33566.9215,623,751,96266.9211.43
Normal operating
uctuationsHeavy-dutyequipment
Raw material cost, laborcost and production cost
2,851,639,12210.96731,403,0003.13289.89
Normal operating
uctuationsEngineeringconstruction projects
Raw material cost, laborcost and production cost
1,618,116,0536.222,273,212,7569.74-28.82
Normal operating
uctuationsSteel structure andrelated income
Raw material cost, laborcost and production cost
2,634,320,68710.133,570,148,97415.29-26.21
Normal operating
uctuationsMarine transportand others
Raw material cost, laborcost and production cost
1,501,571,1515.771,146,871,5424.9130.93
Normal operating
uctuations
Other information about cost analysisNone
(5) Changes in consolidation scope attributable to changes in equity of main subsidiaries during the reporting period
□Applicable √ Not Applicable
(6) Signicant change or adjustment of business, products or service during the reporting period
□Applicable √ Not Applicable
(7) Particulars about main customers and suppliers
A. Main customers of the Company
√ Applicable □ Not Applicable
The sales to the top 5 customers were RMB 5,461,076,400, accounting for 18.09% of the total annual sales; the salesto 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 inthe top ve 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; thepurchases from the related parties among the top 5 suppliers were RMB 370,483,900, accounting for 1.35% of total annualpurchases.
Indicate whether sales to a single supplier accounted for over 50% of the total sales, there was any new supplier in thetop ve 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
1414
The change in selling and distribution expenses was mainly due to the Company’s increased e?orts in market expansionand marketing.The change in general and administrative expenses was mainly due to the decrease in the travel expenses of themanagement personnel of the Company.The change in nancial expenses was mainly due to the increase in exchange losses caused by uctuations in theexchange rate of RMB against USD.
The change in research and development expenditures was mainly due to the increase in the expensed expendituresfor research and development projects of the Company.
4.R&D investments
(1) Detail table of R&D investments
√ Applicable □ Not Applicable
Unit: YuanCurrent expensed R&D investments1,118,337,091Current capitalized R&D investments4,329,559Total R&D investments1,122,666,650Proportion of total R&D investments in operating revenue (%)3.72Proportion of capitalized R&D investments (%)0.39
(2) Detail table of R&D employees
√ Applicable □ Not Applicable
Number of R&D employees in the Company1,440Proportion of number of R&D employees in the total employees of the Company (%)17.76
Educational structure of R&D employeesEducational structure categoryNumberDoctor11Master291Undergraduate1,043Junior College85Senior high school and below10
Age structure of R&D employeesAge structure categoryNumberUnder 30 (exclusive)22730-40 (inclusive of 30 and exclusive of 40)63740-50 (inclusive of 40 and exclusive of 50)48650-60 (inclusive of 50 and exclusive of 60)9060 and above0
(3) Explanation
□Applicable √Not applicable
(4) Reasons for any signicant change in the composition of R&D personnel and the impact on the future development
of the Company
□Applicable √Not applicable
5. Cash ows
√ Applicable □ Not Applicable
The change in the net cash ows from operating activities was mainly due to the decrease in cash payment for goodspurchased and services received by the Company.The change in net cash ows from investing activities was mainly due to the investment recovery by the Company andthe decrease in the cash received from investment income.
The change in net cash ows from nancing activities was mainly due to the repayment of loans by the Company.
1515
2022Explanation for the signicant changes in prots due to non-main business
□Applicable √ Not Applicable
Analysis of assets and liabilities
√ Applicable □ Not Applicable
1. Assets and liabilities
Unit: YuanItem
Amount atthe end of thecurrent period
Proportion of theamount at the endof the current periodin total assets (%)
Amount atthe end of theprevious period
Proportion of theamount at the end ofthe previous periodin total assets (%)
Year- on-year change(%)
NotesMonetary funds2,397,047,7133.064,571,837,5845.84-47.57Notes receivable56,114,6570.073,979,8000.011,309.99Receivables nancing439,912,4280.56245,408,2600.3179.26Contract assets3,243,073,1364.151,971,455,8502.5264.50Assets held for sale-0.0015,167,2880.02-100.00Non-current assets due within oneyear
900,213,4111.151,437,034,5911.83-37.36Short-term borrowings1,793,682,9522.295,977,692,3677.63-69.99Tax payable238,103,8750.30167,827,3880.2141.87Other payables1,314,688,3151.68409,527,6450.52221.03Non-current liabilities due withinone year
6,961,445,2188.902,523,964,0183.22175.81Other non-current liabilities181,805,2070.23292,297,8810.37-37.80
Other descriptionThe monetary funds decreased primarily driven by the investment recovery by the Company and the decrease in thecash 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 nancing 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 methodby the Company that are not eligible for collection.
The assets held for sale decreased primarily driven by delivery of the xed assets with sales contracts signed in theprevious year.Non-current assets due within one year decreased primarily driven by the decrease in the Company’s long-termreceivables due within one year.The short-term borrowings decreased primarily driven by the decreased short-term borrowings of the Company frombanks 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 ofthe Company within a year.
Other non-current liabilities decreased primarily driven by the decrease in the Company’s output tax to be carriedforward.
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
1616
3. Particulars about main restricted assets as at the end of the reporting period
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYItem
Book value at theend of the period
Reason for restrictionMonetary funds21,946,276
Special fund, letter of guarantee from the bank and guarantee fund for L/C collectedfrom the overseas projects and deposited in the overseas supervision accountFixed assets2,463,807,041Collateral for loanLong-term receivables2,212,190,758Hypothecation for loanOther non-currentassets
3,572,872,352Hypothecation for loanContract assets133,406,311Hypothecation for loanAccounts receivable191,217,707Hypothecation for loan
4.Other description
□Applicable √ Not Applicable
Analysis of operational information of the industry
√ Applicable □ Not Applicable
In port machinery market, the Company closely followed the industry development trend, strengthened productinnovation research, and maintained its market leadership in the main business field. The Company would continue toexpand 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 thedissolution of marine engineering inventory and the turnover of idle equipment by strengthening market research andplanning. At the same time, the Company brought into play the innovative advantages to strengthen the research anddevelopment of cutting-edge technologies and seize the policy dividends of marine power strategy.In the o?shore wind power market, as the central government no longer provided subsidies for new o?shore wind powerprojects, the market competition was becoming increasingly intense. The Company took the implementation of professionalwind power operation and maintenance ship projects as the starting point to strengthen the comprehensive advantages suchas brand, scientic research and scale.The parking business was in line with the strategic direction of “smart city” and “smart transportation”, and was in animportant period of policy support, resource integration and technological integration. There was no leading enterprise inChina yet, and the Company should strengthen technological innovation and market exploration for rapid development andgrowth.For steel structure business, there would be great development potential in infrastructure such as highways and railwaybridges in the long run, and the market space for prefabricated steel structure buildings was vast. The Company focused onthe construction advantages of large and heavy special steel structures to cultivate di?erentiated competitive advantages.Analysis of investmentOverall analysis of external equity investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYInvestment amount by the end of reporting period2,945,400,608Changes in investment amount-107,696,340Investment amount in the same period of the last year3,053,096,948Change in investment amount (%)-4
1717
2022
1. Signicant equity investment
√ Applicable □ Not Applicable
Unit:’0,000 Yuan Currency: CNY
Name ofinvestedentity
Mainbusiness
Whetherthe subjectis mainlyengaged ininvestmentbusinessInvestmentmanner
Investment
amountShareholdingratioWhether toconsolidate
Statementitem (ifapplicable)
FundsourcePartner (ifapplicable)
Investmentterm (if any)
Progressas at thebalancesheet date
Expectedearnings(if any)Impactoncurrentprotor lossLawsuitinvolvedor not
Disclosuredate (if any)
Disclosureindex (if any)CCCCPhotovoltaicTechnologyCo., Ltd.
Solar
power
YesNewlyestablished
6,00030%No
Photovoltaicpower plantassets forequity
CCCCIndustrialInvestmentHoldingCompanyLtd.
O?ciallyincorporatedon July 21,2022
5.407No
June 7,2022
SeeExtraordinaryAnnouncementNo. 2022-014for detailsTotal///6,000///////5.407///
2. Signicant non-equity investment
□Applicable √ Not Applicable
3. Financial assets measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYAsset class
Beginningbalance
Prot or losson changes infair values for
the period
Accumulated fair
value changesrecognized in
equity
Impairmentprovision for
the period
Amountpurchased in
the period
Amount sold/redeemed in
the period
Other changes
EndingbalanceStock1,145,095,644-276,050,580869,045,064Total1,145,095,644-276,050,580869,045,064
Securities investment
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Securities
Variety
Stock codeStock abbreviation
Initialinvestment
costFund source
Book value at thebeginning of the
period
Prot or loss onchanges in fairvalues for the
period
Accumulated fairvalue changesrecognized inequity
Amountpurchased in
the period
Amountsold in the
period
Prot orloss oninvestmentsin the period
Book value atthe end of the
period
Accounting subjectStock06198Qingdao Port308,515,588
Self-owned
funds
364,099,519-16,026,76926,430,994348,072,750
Held-for-tradingnancial assetsStock03969CRSC617,854,000
Self-owned
funds
286,756,480-6,438,86820,920,710280,317,612
Held-for-tradingnancial assetsStock300095Huawu Stock11,071,606
Self-ownedfunds
420,227,264-220,574,7982,225,780199,652,466
Held-for-tradingnancial assetsStock601919
COSCO SHIPPING
HOLDINGS
420,000,000
Self-owned
funds
72,893,036-32,760,91611,232,31440,132,120
Held-for-tradingnancial assetsStock000166Shenwan Hongyuan200,000
Self-owned
funds
1,119,345-249,22921,865870,116
Held-for-tradingnancial assetsTotal //1,357,641,194/1,145,095,644-276,050,58060,831,663869,045,064/
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
1818
Sales of signicant assets and equities
□Applicable √ Not Applicable
Analysis of the primary holding companies and the joint-stock companies
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Company NameMain product or services
Registered
capital
Asset size
Net prot/
(loss)Nantong Zhenhua HeavyEquipment Manufacturing Co.,Ltd.
Installation of heavy port equipment, engineering vessels, heavymetal structure and its parts; manufacturing and installation of gearbox, container yard crane, super heavy-duty bridge steel structure,heavy marine machinery equipment; leasing of cranes; specializedcontracting of steel structures
2,500,000,0008,142,368,75040,349,601Shanghai Zhenhua HeavyIndustries Port Machinery GeneralEquipment Co., Ltd.
Sales of port loading and unloading machine, bulk cargo andcontainer machine, port engineering vessels (including oatingengineering crane), material handling mechanical products andparts, sales and technical services, installation and maintenance,technical consultation of all types of machine and equipment, keyparts of the raw materials and accessories equipment
2,184,730,0002,419,404,06751,750,795Shanghai Zhenhua HeavyIndustries Group (Nantong)Transmitter Co., Ltd.
Construction and installation of large-scale port equipment,engineering vessels, o?shore heavy equipment, mechanicalequipment, gear box for wind power generation equipment; large-sized reverse branch, transmission mechanism, dynamic positioning,large-sized anchor windlass, o?shore oil platform lifting device andcomponents; design and manufacturing of the accessories
738,878,3292,213,522,865120,684,118Shanghai Zhenhua PortMachinery (Hong Kong) Co., Ltd.
Design, manufacturing and sales of port machinery, engineeringvessel, steel structure and other parts
HKD 50,000,00014,099,780,358120,671,564Greenland Heavylift (Hongkong)Limited
Marine transportUSD 91,975,1582,716,839,538241,097,715ZPMC Qidong Marine EngineeringCo., Ltd.
Machinery manufacturing303,000,0001,932,325,820-76,031,682CCCC Financial Leasing Co., Ltd.Finance lease5,700,000,00054,071,497,0821,057,340,236China Communicationsconstruction USA. Inc
Construction of port, waterway, highway and bridgeUSD 50,000,000251,796,686824,439Jiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd.
Fabrication and installation of steel structure; foundation
construction, equipment installation and maintenance of o?shore
wind power facilities; construction and maintenance of submarine
cable system; marine engineering construction, equipment
installation and maintenance; leasing of installation equipment
260,000,0004,280,316,321153,804,798
Particulars about structured entities controlled by the Company
□Applicable √ Not Applicable
VI. Discussion and analysis of the future development of the CompanyIndustrial structure and trend
√ Applicable □ Not Applicable
1. International political and economic situation
Entering 2023, the complexity and di?culties 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 andinvestment, as well as the stability of international nancial market. The development risks of export-oriented enterprisesin overseas market development, supply chain construction, territorial development and information security will furtherincrease. The Central Economic Work Conference pointed out that the foundation for China’s economic recovery is not yetsolid, and the triple pressures of demand contraction, supply shock, and weakening expectations are still high. However, itshould also be noted that China’s economy has strong resilience, great potential, and abundant vitality. The e?ects of variouspolicies continue to show, and the overall economic operation is expected to rebound in 2023. China will focus on expandingdomestic demand, accelerating the construction of a modern industrial system, and making greater e?orts to attract andutilize foreign investment, which points out the direction and puts forward higher-level requirements for export-orientedenterprises to improve their operational quality and efficiency, industrial chain construction, scientific and technologicalresearch and development, resource utilization, safety and environmental protection, etc.
1919
2022
2. Industrial development
The national policy sets a tone to expand domestic demand, and the industry is facing opportunities for restorativegrowth. The Central Committee of the Communist Party of China and the State Council issued the “Outline of Strategic Planfor Expanding Domestic Demand (2022-2035)”, and the National Development and Reform Commission simultaneouslyformulated and introduced the “Implementation Plan for Expanding Domestic Demand during the 14th Five-Year PlanPeriod”, proposing to increase investment in the optimization and upgrading of traditional manufacturing industries, expandinvestment in advanced manufacturing, and improve the quality and e?ciency of the manufacturing supply system. A newround of technological revolution represented by digital technology is ourishing worldwide, the industrial digitalization inequipment manufacturing, port industry, marine engineering and other elds has become the trend of the times, and thetransformation and upgrading of digital and intelligent manufacturing of companies have become more urgent.Development strategy of the Company
√ Applicable □ Not Applicable
1. Overall development strategy
With “1544” overall development strategy as a strategic guide, gradually build the Company into a globally competitivetechnology-oriented, management-oriented and quality-oriented world-class equipment manufacturing enterprise. Firmlyanchor the goal of building a technology-oriented, management-oriented and quality-oriented world-class enterprise, seizethe global and national development opportunities, consolidate and bring into full play the enterprise’s own advantages, andfully achieve the goal. Work hard on “ve 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 moderntechnologies such as 5G and artificial intelligence, increase the efforts in tackling "bottleneck" technologies, consolidatethe long-term partnership with major customers at home and abroad, and transform and upgrade from product servicesand 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 furtherupgrade the Company's leadership in the automated terminal construction. The o?shore engineering business will pay closeattention to the development trend of the marine economy, synchronously accelerate the market promotion and the technicalinnovation of o?shore engineering products, seize the opportunities of cooperation with important customers, continue toimplement various projects such as engineering vessels, crane vessels, wind power installation (service operation) vesselsand so on, and improve the level of production performance and cost control of offshore engineering projects. In termsof shipping business, based on upgrading the fleet management and guaranteeing the transportation of the Company’sproducts, it will seize the opportunities of shipping recovery, o?shore wind power construction and overseas industrializedinfrastructure construction to improve the industrial competitiveness and the scale e?ciency 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 maturenew business such as steel structure, o?shore wind power and sky parking. Bring into play the Company's advantages infabrication and transportation of steel structure, increase the layout of internal and external production and manufacturingresources and accelerate the implementation of the benchmark projects in national strategic regions and overseas steelstructure markets such as Australia and Japan. Seize the opportunity of national new energy development, give full playto the Company’s unique competitiveness in the eld of transportation and installation of o?shore wind power equipment,strengthen the professional cooperation with outstanding enterprises in the industry, further excavate the potential of windpower market in important national regions such as Guangdong and overseas regions and strive for winning more generalcontracting projects for the representative wind power projects, and explore the wind farm service operation market.Bring into full play the demonstration e?ects of the benchmark parking projects built or in progress, further give play to theadvantages in equipment and technology, and gradually explore the construction of intelligent parking full-scene solutionsand 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 eld of renewal and reconstruction of port machinery, and improve the scalebenet of after-market services. Based on the renewal and renovation of port machinery, with Terminexus online spare partsservice 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 nancing 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 graspthe specific advantages, specific regions and specific partners to carry out investment and financial business. Activelyparticipate in the equity investment of important customers of domestic ports and listed suppliers of supporting parts relatedto the Company's primary business; invest the projects with low risk and stable benets such as o?shore wind power, steelstructure, parking garage, etc.
2020
(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 assembledbuilding in a steady and orderly manner. As to the assembled building business, give full play to the Company's advantagesin design and fabrication of steel structure manufacturing, and actively implement the assembled steel structure benchmarkprojects. In the elds of marine economy, people's livelihood engineering and new energy, strengthen the situation analysis,accelerate the cultivation of the Company’s di?erentiated advantages, upgrade the business qualication, and actively followup and implement the projects with obvious advantages and considerable benets.Operation plan
√ Applicable □ Not Applicable
Continuing to consolidate the core position of the port machinery business. The Company will improve the technologyaccumulation of automated terminals, promote the performance of automated terminals, and vigorously expand the market ofautomated terminals; further improve the level of product gross margin on the basis of retaining the market share of quaysidecontainer crane products; improve the standardization and modularization level of container portal crane products; vigorouslydevelop the bulk cargo machinery and mobile machinery business to further enrich the brand connotation of “Zhenhua PortMachinery”.Expanding the development scale of maring engineering business in an orderly manner. The Company will bring intoplay 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 itsexisting market share; continue to make e?orts to promote the resolution of o?shore inventory, seek durable, reliable, andhigh-quality long-term rental orders, and actively seek suitable opportunities to facilitate inventory sales.The Company will make e?orts to enhance the brand e?ect of steel structure business and strengthen the qualicationand brand building of steel structure products.Taking advantage of shipping and installation to actively explore the market. The Company will focus on tracking themarket demand of spot marine transportation, continuously improve the market competitiveness of semi-submersible anddeck vessel ocean transportation business, give full play to the advantages of floating crane operation, and vigorouslyexpand the port and o?shore lifting market.Striving to seize the market opportunities in wind power business. The Company will give full play to its manufacturingadvantages in crane vessel, installation platform, operation and maintenance vessel, booster station module and wind powerfoundation steel structure to continue to consolidate its core competitiveness in wind power market.
Optimizing and improving the scale and e?ciency of parking business. The Company will explore diversied meansto quickly make up for the shortcomings of parking business and accelerate market expansion; incorporate the Company’sparking equipment and solutions into transportation infrastructure projects; enter more application scenarios throughresearch and development to empower the market; and actively seek for the investment-construction-operation integratedurban parking resources.
Sparing no e?ort to cultivate the prot growth points of after-market service business. The Company will continue topromote its subsidiaries to deepen the reform work, build the overall supply chain capability from the market end to thedelivery end, and strengthen the market layout in line with the characteristics of the after-market business; continue tostrengthen 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 greenprefabricated building and rely on physical companies to carry out business; continue to optimize and improve the elevatorinstallation 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 expandequipment procurement, installation, commissioning, and operation and maintenance related hazardous waste treatmentbusinesses. Relying on CCCC Photovoltaic Technology Co., Ltd., the Company will increase market development andinvestment in photovoltaic projects, do well in the EPC and operation and maintenance of projects, increase the industry-university-research e?orts, strive to master the new material technology, and truly intervene in the key links of industry chain.
Potential risks
√ Applicable □ Not Applicable
1. Market risk
The main business of the Company is closely related to the operation and development of macro economy and theindustry cycle of the shipping industry. The complexity and di?culties of world economic situation still exist, with geopolitics,food security, energy security, fragile macroeconomics, growing ination and rising debt crisis continuing to a?ect global tradeand investment, as well as the stability of international nancial markets. The Company will strengthen the scientic studyand judgment of the macro political and economic situation, identify the systematic risks in time, and make risk responseplans in advance.
2121
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 ofoverseas business brings a certain scale of foreign exchange revenue and expenditure to the Company. The Company willpay close attention to changes in exchange rates, optimize the structure of foreign currency assets and liabilities, adhere tothe concept of exchange rate risk neutrality, incorporate exchange rate uctuations into daily nancial decisions, considerexchange costs into project costs, and prevent exchange rate uctuations 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. TheCompany 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 supportingparts such as electric control assembly, cable reel and elevator, and build the core competitiveness and driving force for thedevelopment of the Company.
Others
□Applicable √Not applicable
VII.Explanation of circumstances and reasons for non-disclosure by the Company in consideration of inapplicableregulations, state secrets and commercial secrets
□Applicable √Not applicable
2222
I.Related information about corporate governance
√Applicable □Not applicable
In strict accordance with the “Company Law”, “Securities Law”, “Articles of Association” and the requirements ofthe China Securities Regulatory Commission and Shanghai Stock Exchange on corporate governance, the Companystandardized daily operations, strived to enhance corporate governance, further established and improved the internalcontrol system, improved the quality of information disclosure and strengthened the investor relations managementcontinuously 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 theBoard of Directors, 6 meetings of the Board of Supervisors and 3 meetings of the General Meeting of Shareholders, and theprocedures of convening, holding, voting and disclosure of all meetings were in compliance with laws and regulations andthe requirements of the Company’s management system.The Company focused on improving the governance system and continued to strengthen the corporate governancestructure. In 2022, the Company continued to optimize the construction of governance systems, such as the “Articles ofAssociation”, “Rules of Procedure of the Board of Directors” and “Implementation Rules for Specialized Committees of theBoard of Directors”, and continuously incorporated the latest requirements such as the reform of state-owned enterprisesand regulations of listed companies. The Company organized the revision of the rules of procedure and list for governancebodies to further clarify the boundary of powers and responsibilities of di?erent governance bodies. The Company has madee?orts to promote the unication 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, rened the implementation of six importantauthorities, such as the right to make medium and long-term development decisions, and improved the supporting system,which laid a foundation for the standardized, scientic and e?cient operation of the Board of Directors of the Company.The Company has conscientiously fullled its information disclosure obligations and improved the quality of informationdisclosure work continuously. In 2022, the Company attached great importance to information disclosure work and set upinformation disclosure specialists in each department and division of the Company to facilitate the communication channelsfor material information within the Company, and strengthened the professional knowledge training for relevant personnel toimprove the awareness of compliance in information disclosure and to enhance the level of information disclosure. Duringthe year, the Company organized the preparation of extraordinary announcements of board resolutions, periodic reports andother announcement documents, and issued a total of 68 announcements, including 35 extraordinary announcements, 29online announcement documents and 4 periodic reports, so as to deliver timely, accurate and complete information on theCompany’s operation, nance and signicant events to investors.The Company has continued to improve the level of investor relations management and enhance the positive interactionwith the capital market. In 2022, the Company formulated the “Investor Relations Management Measures” and the “AnnualInvestor Relations Management Plan” to standardize the information communication between the Company and investorsand improve the level of investor relations management. The Company communicated with the capital market throughmultiple channels, at multiple levels and from multiple perspectives. The Company held annual and first quarter resultspresentation, half-year results presentation and third quarter results presentation in the form of online interaction, and thechairman and president of the Company attended and responded to investors’ concerns to deepen their understandingand recognition of the Company and increase the attention to the Company from capital market. The Company maintainedcontinuous communication with investors through investor research, investor hotline, “SSE E-Interactive” and other meansto actively convey the Company’s value to investors and strengthen investors’ condence in long-term investment in theCompany.Indicate whether there was any material incompliance with the applicable laws and administrative regulations, as well asthe CSRC’s requirements on corporate governance. If yes, please explain.
□Applicable √Not applicable
II.Specic 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 andsubsequent 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 thesame or similar business with the Company. Please explain the impact of horizontal competition or any signicant change tohorizontal competition on the Company, solutions taken, progress and subsequent plans.
□Applicable √Not applicable
Section IVCorporate Governance
2323
2022III. Brief introduction to the general meeting of shareholders
Session ofmeeting
Conveningdate
Query indexof the websitespecied forpublishingresolutions
Date ofdisclosure forpublishingresolutions
Resolutions2021 GeneralMeeting ofShareholders
June 27, 2022
www.sse.com.cn;enter the stockcode to search
June 28, 2022
Reviewed and approved the "Proposal on Reviewing the WorkingReport of Board of Directors in 2021", the "Proposal on Reviewing theWorking Report of the Board of Supervisors in 2021"and other proposals(See Extraordinary Announcement No. 2022-017 for details)2022 rstextraordinarygeneralmeeting ofshareholders
September 15,2022
www.sse.com.cn;enter the stockcode to search
September 16,2022
Reviewed and approved the "Proposal on Reviewing the Election ofMr. Ou Huisheng as A Director of the Company" (See ExtraordinaryAnnouncement No. 2022-026 for details)2022 secondextraordinarygeneralmeeting ofshareholders
December 28,2022
www.sse.com.cn;enter the stockcode to search
December 29,2022
Reviewed and approved the "Proposal on Reviewing the Electionof Mr. Zhang Jianxing as A Director of the Company" (SeeExtraordinary Announcement No. 2022-034 for details)Extraordinary general meetings of shareholders convened at the request of preference shareholders with resumedvoting 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 accordancewith the laws and rules including “Company Law of the People’s Republic of China”, the “Rules for the General Assembliesof Shareholders of Listed Companies” and “Articles of Association”; the qualications of the attendees and the convenerwere lawful and e?ective; the voting procedures and results of the meetings were lawful and e?ective; and the resolutions ofthe general meetings of shareholders were lawful and e?ective.IV. Directors, Supervisors and Senior ExecutivesChanges in shares held by current and resigned directors, supervisors and senior executives during thereporting period and their remunerations
√Applicable □Not applicable
Unit: Share
NamePost (Note)SexAge
Startingdate oftenure
Expirydate oftenure
Numberof sharesheld at thebeginning
of theyear
Number
ofsharesheld atthe endof theyear
Change
insharesin theyear
Reason
ofchange
Totalremunerationbefore tax fromthe Companyduring thereporting period(RMB’0,000)
Remunerationreceived fromany of theCompany’srelated parties
or notLiuChengyun
Director, chairman
of the board
Male54
June 28,
2021
June 27,
2024
000126.53NoGeneral manager
(president)(resigned)
July 12,
2021
August29, 2022OuHuisheng
Director
Male53
September
15, 2022
June 27,
2024
00027.79NoGeneral manager
(president)
August 30,
2022
June 27,
2024ZhuXiaohuai
Director
Male54
June 28,
2021
June 27,
2024
000127.42NoExecutive General
Manager
December12, 2022
June 27,
2024CFO
July 12,
2021
June 27,
2024
2424
NamePost (Note)SexAge
Startingdate oftenure
Expirydate oftenure
Numberof sharesheld at thebeginning
of theyear
Number
ofsharesheld atthe endof theyearChangeinsharesin theyearReasonofchange
Totalremunerationbefore tax fromthe Companyduring thereporting period(RMB’0,000)
Remunerationreceived fromany of theCompany’srelated partiesor notWangCheng
DirectorMale50
August 25,
2021
June 27,2024
000127.22NoZhangJianxing
DirectorMale61
December28, 2022
June 27,2024
0.75Yes
ShengLeiming
Independent directorMale53
June 28,
2021
June 27,
2024
00012NoZhangHua
Independent directorMale50
June 28,
2021
June 27,
2024
00012NoZhaoZhanbo
Independent directorMale47
June 28,
2021
June 27,
2024
00012NoBai YunxiaIndependent directorFemale50
June 28,2021
June 27,
2024
00012NoZhang Lijie
Supervisor
Male53
August 25,2021
June 27,2024
00096.99NoChief supervisor
August 30,2021
June 27,
2024Wei Wei
Employeesupervisor
Male51
June 28,
2021
June 27,
2024
00069.08NoYou HuaSupervisorMale60
June 28,
2021
June 27,2024
0000YesLiu FengVice presidentMale52
October 29,2021
June 27,2024
00063.02NoZhangJian
Vice presidentMale54
July 12,2021
June 27,2024
000 127.22NoShanJianguo
Vice president
Male59
July 12,
2021
June 27,
2024
000127.22NoChief engineer
February20, 2023
June 27,
2024LiRuixiang
Vice president
Male48
February20, 2023
June 27,
2024
000127.22NoChief economist
July 12,
2021
June 27,
2024Sun Li
Chief legal counsel,
secretary of the
board, chiefcompliance o?cer
Male51
July 12,2021
June 27,
2024
000127.22NoLuHanzhong
Vice presidentMale48
February20, 2023
June 27,
2024
0000NoShenQiuyuan
Vice presidentFemale46
February20, 2023
June 27,
2024
0000NoLiuQizhong
Director (resigned)
Male59
June 28,
2021
December28, 2022
000127.22NoVice president
(resigned)
July 12,
2021
February20, 2023Yu JingjingDirector (resigned)Male48
December22, 2021
December12, 2022
0000YesFei Guo
Chief engineer
(resigned)
Male61
July 12,
2021
February20, 2023
000127.22NoWangBaihuan
Vice president
(resigned)
Male59
July 12,
2021
July 29,
2022
00054.17NoZhou Qi
Vice president
(resigned)
Male51
July 12,
2021
March 14,
2022
00030.46NoTotal//////1,534.75/
2525
2022NameMain working experiencesLiu Chengyun
Born in 1969, male, master, senior economist, senior engineer. He began his career in August 1989 and has successively served asdeputy director of CCCC Fourth Harbor Engineering Co., Ltd., vice general manager of CCCC Investment Co., Ltd., secretary of the Partycommittee, chairman and general manager of CCCC Nansha Investment Development Co., Ltd. and CCCC Urban Investment HoldingCo., Ltd., general manager and secretary of CPC Working Committee of CCCC South China regional headquarters, general manager ofthe Strategic Development Department of China Communications Construction Company Ltd. (CCCC), general manager of the InvestmentDivision of CCCC, director of the board o?ce and general manager of the Strategic Development Department of China CommunicationsConstruction Group Co., Ltd. (CCCG) and CCCC. He resigned as the General Manager (President) of the Company on August 29, 2022due to job adjustment. Currently, he is the assistant to the general manager of CCCG, and chairman of the Company.Ou Huisheng
Born in 1970, male, PhD, senior economist, accountant, CPA. He began his career in 1992 and successively served as the president ofZhuhai Fuhua Group Co., Ltd. (renamed as Zhuhai Port Co., Ltd. in September 2010), director of Zhuhai Fuhua Group Co., Ltd. (ZhuhaiPort Co., Ltd.), director and deputy secretary of the Party Committee of Zhuhai Port Holdings Group Co., Ltd., general manager ofZhuhai Port Holdings Group Co., Ltd., chairman, party secretary, and legal representative of Zhuhai Port Holdings Group Co., Ltd., legalrepresentative of Zhuhai Port Co., Ltd., chairman of the board of directors of Zhuhai Port Co., Ltd., chairman of Tongyu Heavy IndustryCo., Ltd., and chairman of Qingdao Tianneng Heavy Industry Co., Ltd. He has been the general manager (president) of the Companysince 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.Zhu Xiaohuai
Born in 1969, male, master of MBA, senior accountant. He began his career in July 1991 and successively served as the section memberand vice section manager of Financial Division of CCCC Shanghai Dredging Co., Ltd., vice director of Budget and Finance Department,vice manager (in charge of the work) or manager of Finance Department, and member of commission for disciplinary inspection of CCCCShanghai Dredging Co., Ltd., and the director, chief accountant and Party committee standing member of CCCC Shanghai Dredging Co.Ltd. He has been the executive general manager of the Company since December 12, 2022 and is currently a director, the executivegeneral manager and CFO of the Company.Wang Cheng
Born in 1973, male, master of engineering, senior political worker. He started working in August 1994 and successively served as thevice secretary or secretary of league committee, and vice secretary or secretary of Party Branch of No. 2 Engineering Co., Ltd. of CCCCThird Harbor Engineering Co., Ltd.; vice director and director of Organization Department of CCCC Third Harbor Engineering Co., Ltd.;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 oflabor union of CCCC Third Harbor Engineering Co., Ltd.; secretary of Commission for Disciplinary Inspection, supervisor and chairman ofboard of supervisors of the Company. Currently, he is a director and the chairman of labor union of the Company.Zhang Jianxing
Born in 1962, male, bachelor, professor-level senior accountant. He began his career in August 1985 and has successively served asa cadre in the Finance Department of CCCC Shanghai Dredging Co. Ltd., deputy chief of the Finance Section of Jiuzhou DredgingEngineering Company under CCCC Shanghai Dredging Co. Ltd., deputy director and director of the Planning and Finance Departmentof CCCC Shanghai Dredging Co. Ltd., member of the Party Committee, deputy general manager and chief nancial o?cer of CHECDredging Co., Ltd., secretary of the Party Committee, deputy general manager and chief nancial o?cer of CHEC Dredging Co., Ltd.,member of the Party Committee, director and chief accountant of CCCC Shanghai Dredging Co. Ltd., dirctor and general manager ofCCCC Financial Leasing Co., Ltd., and secretary of the Party Committee and chairman of the board of directors of CCCC FinancialLeasing Co., Ltd. He has been a director of the Company since December 28, 2022. Currently, he is a director of the Company.Sheng Leiming
Born in 1970, male, doctor of laws, rst grade lawyer. He successively served as a lawyer assistant and lawyer in Shanghai ForeignTrade Law Firm, a teacher of civil and commercial law in East China University of Political Science and Law, partner and chief lawyer ofShanghai Zhongmao Law Firm, and a lawyer of Guantao Law Firm. Currently, he is an independent director of the Company.Zhang Hua
Born in 1973, male, PhD in Economics, associate professor of finance. He successively served as a researcher, lecturer, assistantprofessor and associate professor at China Europe International Business School. Currently, he is an independent director of theCompany.Zhao Zhanbo
Born in 1976, male, PhD. He had served as a teacher in School of Software & Microelectronics, Peking University since 2005 and now heis 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.Bai Yunxia
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 ofKaiyuan Group under Xi’an Jiaotong University, lecturer of School of Economics and Management of Tongji University, research scholarof CKGSB. Currently, she is the director of Department of Accounting, School of Economics and Management, Tongji University and theresearch scholar of Investment Center of CKGSB, and an independent director of the Company.Zhang Lijie
Born in April 1970, male, master, senior engineer and senior political engineer. He started working in August 1991 and successively servedas deputy manager, manager, section chief of Construction Section and manager of Engineering Department of No.6 Engineering Co.,Ltd. of CCCC Third Harbor Engineering Co., Ltd. Jiaxing Branch; deputy secretary of the Party committee and secretary of the DisciplineInspection Commission, and deputy general manager of CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch; director of the PartyCommittee Work Department and general manager of the Corporate Culture Department of CCCC Third Harbor Engineering Co., Ltd.;secretary of the Party committee and deputy general manager of CCCC Third Harbor Engineering Co., Ltd. Xiamen Branch; memberof the Party committee of CCCC Third Harbor Engineering Co., Ltd., secretary of the Party committee, general manager and executivedirector (legal representative) of Xiamen Branch. Currently, he is the chief supervisor of the Company.
Wei Wei
Born in February 1972, male, bachelor, senior political engineer. He started working in August 1990, and successively served as secretaryof the General Youth League branch of the Technical School of Shanghai Port Machinery Manufacturing Plant, secretary of the YouthLeague Committee, chairman of the labor union of the metal processing workshop, and secretary of the Party branch of the gearboxworkshop of Shanghai Port Machinery Manufacturing Plant; manager of the Human Resources Department, chairman of the Labor Unionand Deputy Secretary of the Party branch of ZPMC Nanhui Base, deputy secretary of the temporary general Party branch, chairman of theLabor Union and general o?ce manager of Shanghai Port Machinery Heavy Industry Co., Ltd.; head of the rst discipline inspection teamassigned by the Discipline Inspection Committee of ZPMC, director of the Trade Union O?ce and deputy general manager (in charge ofthe work) of the Administrative A?airs Department. Since May 2021, he has been the vice chairman of the Labor Union, director of theLabor Union O?ce and deputy general manager (in charge of the work) of the Administrative A?airs Department of ZPMC. Currently, he isthe employee supervisor and vice chairman of the labor union of the Company.
2626
NameMain working experiencesYou Hua
Born in 1963, male, bachelor, senior accountant. He successively served as the assistant director and deputy director of FinanceDepartment of China Harbour Engineering Company Limited, and nance manager of CHUWA Bussan Company Limited (Japan); generalmanager of the Finance Department and director of Capital Settlement Center, deputy chief accountant and general manager of FinanceDepartment of China Harbour Engineering Company (Group); general manager of Capital Department and director of Capital SettlementCenter of CCCG; director and chief accountant of China Harbour Engineering Company Limited; director, vice general manager and chiefaccountant of CCCC Investment Co., Ltd.; director, general manager and deputy Secretary of Party Committee of CCCC Finance Co., Ltd.Since December 2019, he has been a full-time outside director of CCCG. He is now a supervisor of the Company.Liu Feng
Born in 1971, male, master, senior economist. He started working in July 1995, and successively served as the deputy director (in chargeof the work) and director of the Second Division of the Department of Industry and Trade of CCCC; director and general manager assistantof the Equipment Manufacturing Marine Heavy Industry Department of CCCC; deputy general manger of the Equipment ManufacturingMarine Heavy Industry Department, deputy general manger of Science and Technology Equipment Department, deputy director of ChiefEngineer O?ce of CCCC; deputy general manager (deputy director) of the Department of Science, Technology and Digitalization (ChiefEngineer O?ce) of CCCG and CCCC. Currently, he is the vice president of the Company.Zhang Jian
Born in 1969, male, MBA, senior engineer. He successively served as the technician, production planner and assistant director of No. 2Panel beater of Shanghai Port Machinery Manufacturing Plant, director of gearbox branch of Shanghai Port Machinery ManufacturingPlant, vice director and member of the Party committee of Shanghai Port Machinery Manufacturing Plant, vice general manager ofShanghai Port Machinery Heavy Industry Co., Ltd., general manager and president assistant of ZPMC Operation O?ce. Currently, he isthe vice president of the Company.Shan Jianguo
Born in 1964, male, bachelor, senior engineer. He started working in July 1988, and successively served as the technician in ShanghaiPort Machinery Manufacturing Plant, the engineer and chief engineer of ZPMC Machinery O?ce, general manager and vice chief engineerof No.4 design o?ce of design company, vice director and director of ZPMC Machinery O?ce, manager of budget assessment departmentand the dean of ZPMC Land-based Heavy Industry Research & Design Institute, and the president assistant of the Company. He has beenthe vice general manager (vice president) of the Company since February 2015 and the chief engineer of the Company since February 20,2023. Currently, he is the vice president and chief engineer of the Company.Li Ruixiang
Born in 1975, male, bachelor, senior economist. He successively served as the director of Technical Process Department, trainee managerof Manufacturing Department and manager of Quality Assurance Department of Zhangjiagang Base of Shanghai Port Machinery Plant;project leader, o?ce manager, vice director of Quality Safety O?ce of ZPMC Quality Inspection Company, vice general manager andgeneral manager of mechanical supporting base, secretary of Party Branch, vice chief economist, general manager of budget assessmentdepartment, general manager of Material and Equipment Procurement Department and president assistant of the Company. He has beenthe vice president of the Company since February 20, 2023. Currently, he is the vice president and chief economist of the Company.Sun Li
Born in 1972, male, EMBA, senior engineer. He successively served as the project leader and vice manager of Operation Department,vice director of Operation O?ce and director of O?-Shore O?ce, general manager assistant, vice president and director of the Company.Currently, he is the chief legal counsel, secretary of the board and chief compliance o?cer of the Company.Lu Hanzhong
Born in 1975, male, bachelor, Bachelor of Engineering, senior engineer. He started working in July 1997 and successively served as thesupervisor of Process Department and deputy manager of Process Department of the Company, deputy general manager of ChangxingBase, general manager of Changxing Base, deputy chief craftsman and manager of Process Department of the Company, and generalmanager of Steel Structure Division. He has been the vice president of the Company since February 20, 2023. Currently, he is the vicepresident and chief craftsman of the Company.Shen Qiuyuan
Born in 1977, female, bachelor of economics, senior economist. She started working in August 1999 and has successively served as theproject supervisor of Business Department of the Company, general manager of Project Management Department of the Business O?ce,general manager of the Port Machinery Business Department, deputy chief economist of the Company, general manager of the investmentgroup and general manager of the Strategic Development Department. She has been the vice president of the Company since February20, 2023. Currently, she is the vice president of the Company and the general manager (General Manager) of the Marketing Headquarters(Integrated Development Management Department).Liu Qizhong
Born in 1964, male, bachelor, senior economist. He started working in August 1983 and successively served as the manager of OperatingDepartment and the vice president of the Company, and serves as the director of the Company since March 2004. He resigned as adirector of the Company on December 28, 2022 for personal reasons, and resigned as the vice president of the Company on February 20,2023 for personal reasons. Currently, he is a consultant of the Company.Yu Jingjing(resigned)
Born in 1975, male, bachelor degree, senior economist. He started working in July 1998 and successively served as the director of theplanning department of China Harbour Engineering Company (Group), the business director of the enterprise development departmentof CCCG, the deputy director (in charge of the work) and director of the investor relations division of the o?ce of the board of directors ofCCCC, the assistant director and deputy director of the o?ce of the board of directors of CCCC, and a director of China CommunicationsInformation Technology Group Co., Ltd. Currently, he is the deputy director (deputy general manager, deputy director and deputy director)of the o?ce of the board of directors (Strategic Development Department, Reform O?ce and Dispatched Director O?ce) of CCCG andCCCC. He resigned as a director of the Company on December 12, 2022 due to work-related reasons.Fei Guo(resigned)
Born in 1962, male, EMBA, professor-level senior engineer. He successively served as the engineer of Shanghai Port Machinery Plant, electricalengineer of the Technology Department, director of No. 5 Electrical O?ce, vice chief engineer, chief engineer, director of Development O?ce andvice president of ZPMC. He resigned as the chief engineer of the Company on February 20, 2023 due to personal reasons.Wang Baihuan(resigned)
Born in 1964, male, EMBA master, senior economist and senior engineer. He started working in August 1984, and successively served asthe manager and deputy secretary of the Party committee of No. 2 Engineering Company of CCCC Shanghai Dredging Co. Ltd.; executivedirector, general manager and deputy secretary of the Party committee of the Waterway Construction Company of CCCC ShanghaiDredging Co. Ltd.; secretary of the Party Committee and deputy general manager of the Waterway Construction Company of CCCCShanghai 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 thevice president of the Company on July 29, 2022 due to work-related reasons.Zhou Qi(resigned)
Born in 1972, male, EMBA, professor-level senior engineer. He successively served as the technician, manager, deputy chief engineer,general manager of the Electric Appliance O?ce and chief engineer of the Company. He resigned as the vice president of the Companyfor personal reasons on March 14, 2022.
2727
2022Notes to other circumstances
□Applicable √Not applicable
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-service sta?
Name of shareholding
entity
Position
Starting dateof tenure
Expirationdate of tenureLiu Chengyun
China CommunicationsConstruction Group Co., Ltd.
General manager assistant
March 5,2021Yu Jingjing
China CommunicationsConstruction Group Co., Ltd.
Deputy director (deputy general manager, deputydirector and deputy director) of the o?ce of the boardof directors (strategic development department,reform o?ce and dispatched director o?ce)
December2020Statement of the position held in shareholding entity
2. Statement of the position held in other entities
√Applicable □Not applicable
Name of in-service sta?
Name of other entities
Position held in
other entities
Starting date of
tenure
Expirationdate oftenureZhu XiaohuaiCCCC Financial Leasing Co., Ltd.DirectorJune 2018Zhang JianCCCC Shanghai Equipment Engineering Co., Ltd.Chairman of the boardMarch 2017Shan Jianguo
CCCC Highway Bridges National Engineering Research CentreCo., Ltd.
Vice general managerDecember 2019Shanghai Ocean Engineering Equipment ManufacturingInnovation Center Co., Ltd.
DirectorNovember 2020CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
DirectorNovember 2020Sinoocean O?shore Assets Management LimitedDirectorSeptember 2021Lu HanzhongNantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.Executive directorDecember 2022Shen Qiuyuan
Zhenhua Marine Energy (HK) Co., Ltd.Chairman of the boardAugust 2021Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd.DirectorAugust 2021ZhangJianxing
CCCC Industrial Investment Holding Company Ltd.DirectorDecember 2022You Hua
First Highway Engineering Group Co., Ltd.DirectorMarch 2020
CCCC Asset Management Co., Ltd.DirectorMarch 2020
CCCC Dredging (Group) Co., Ltd.DirectorOctober 2020Zhao Zhanbo
School of Software & Microelectronics, Peking UniversityProfessor2015
Yingda Taihe Life Insurance Co., Ltd.Independent directorJanuary 2022
Bai Yunxia
School of Economics and Management of Tongji University,
Investment Centre of Cheung Kong Graduate School of Business
Director of AccountingDepartment, researchscholar
January 2010
Shanghai General Healthy Information and Technology Co., Ltd.Independent directorFebruary 2019
Shanghai Fubei Pet Products Co., Ltd.Independent directorDecember 2019
Zhejiang Yonghe Refrigerant Co., Ltd.Independent director2020
Zhejiang Aishida Electric Co., Ltd.Independent director2020Zhang Hua
China Europe International Business SchoolAssociate professorJuly 2016
Jiangsu Liyan Technology Co., Ltd.Independent directorApril 2017
Zhejiang Hengwei Battery Co., Ltd.Independent directorMay 2017
Nanjing Sunlord Electronics Corporation Ltd.Independent directorNovember 2017
Chengdu Qushui Science and Technology Co., Ltd.Independent directorDecember 2019
2828
Name of in-service sta?
Name of other entities
Position held inother entities
Starting date of
tenure
Expiration
date oftenureShengLeiming
All China Lawyers AssociationVice presidentDecember 2011Guantao Law FirmLawyer2016Tsingtao Brewery Co., Ltd. Independent directorMay 2020Shanghai United Imaging Healthcare Co., Ltd.Independent directorOctober 2020Shanghai Foreign Service Holding Group Co., Ltd.Independent directorSeptember 2021Kweichow Moutai Co., Ltd. Independent directorMay 2022Statement of the position held in other entities
Remuneration of directors, supervisors and senior executives
√Applicable □Not applicable
Decision-making process for the remuneration of directors,supervisors and senior executives
In accordance with the regulations of “Articles of Association”, theremuneration of directors and supervisors is subject to the generalmeeting of shareholders and the remuneration of the senior executivesis approved by the board of directors.Basis for deciding the remuneration of directors, supervisorsand senior executives
The basic salary plus performance bonus is assessed in combinationwith the quantitative index of production and operation, etc.Actual payout of remuneration for directors, supervisors andsenior executives
For details, please refer to the section “Changes in shares held bycurrent and resigned directors, supervisors and senior executivesduring the reporting period and their remunerations”Total remuneration actually obtained by all directors, supervisorsand senior executives at the end of reporting period
RMB 15,347,500Change in directors, supervisors and senior executives
√Applicable □Not applicable
NamePostChangeReason of changeLiu ChengyunGeneral manager (president)ResignedJob adjustmentOu Huisheng
DirectorElectedJob adjustmentGeneral manager (president)EngagedJob adjustmentZhu XiaohuaiExecutive general managerEngagedJob adjustmentZhang JianxingDirectorElectedJob adjustmentShan JianguoChief engineerEngagedJob adjustmentLi RuixiangVice presidentEngagedJob adjustmentLu HanzhongVice presidentEngagedJob adjustmentShen QiuyuanVice presidentEngagedJob adjustmentLiu QizhongDirector, vice presidentResignedPersonal reasonsYu JingjingDirectorResignedJob adjustmentFei GuoChief engineerResignedPersonal reasonsWang BaihuanVice presidentResignedJob adjustmentZhou QiVice presidentResignedPersonal reasons
Punishments by securities regulatory authority in recent three years
□Applicable √Not applicable
Others
□Applicable √Not applicable
2929
2022V. Related information about the board meetings convened during the reporting period
Session of meetingConvening dateResolutionsThe 8thboard meeting ofthe 8
th board of directors
March 7, 2022
Reviewed and approved the "Proposal on Formulating the Measures for Investor Relations Management ofZPMC" and other proposals (see Extraordinary Announcement No. 2022-001 for details)The 9
thboard meeting ofthe 8th board of directors
April 13, 2022
Reviewed and approved the "Proposal on Reviewing the Working Report of Board of Directors in 2021" andother proposals (see Extraordinary Announcement No. 2022-004 for details)The 10
thboard meeting ofthe 8th
board of directors
April 29, 2022
Reviewed and approved the "Proposal on Reviewing the 2022 First Quarterly Report of the Company" andother proposals (see Extraordinary Announcement No. 2022-010 for details)The 11
th
board meeting ofthe 8
th board of directors
June 6, 2022
Reviewed and approved the "Proposal on Convening the 2021 Annual General Meeting of Shareholders ofthe Company" and other proposals (see Extraordinary Announcement No. 2022-012 for details)The 12th
board meeting ofthe 8th board of directors
June 29, 2022
Reviewed and approved the "Proposal on Reviewing the Tenure System and Contractual ManagementMeasures and Work Plan for the Members of the Company’s Management Team" and other proposals (seeExtraordinary Announcement No. 2022-018 for details)The 13th
board meeting ofthe 8th board of directors
August 30, 2022
Reviewed and approved the "Proposal on Reviewing the Full Text and Summary of 2022 Semi-AnnualReport of the Company" and other proposals (see Extraordinary Announcement No. 2022-022 for details)The 14
th
board meeting ofthe 8
th
board of directors
October 28, 2022Reviewed and approved the "Proposal on Reviewing the 2022 Third Quarterly Report of the Company"The 15
th
board meeting ofthe 8th board of directors
December 12,2022
Reviewed and approved the "Proposal on Reviewing the Revision of the List of Proceedings of President’sO?ce Meeting" and other proposals (see Extraordinary Announcement No. 2022-030 for details)The 16th
board meeting ofthe 8
th
board of directors
December 28,
2022
Reviewed and approved the "Proposal on Reviewing and Formulating the Regulations on Board MeetingProposals" and other proposals (see Extraordinary Announcement No. 2022-035 for details)
VI. Duty performance of directorsAttendance of the directors at the board meetings and the general meeting of shareholders
Director name
Independent
director ornot
Attendance at Board Meetings
Attendanceat the generalmeeting ofshareholdersTimes ofmeetings should
be attended in
this year
Times ofpersonalattendance
Times ofattendance bytelecommunication
Times ofattendancethrough a
proxy
Times ofabsence
Personalabsence for two
consecutive
times
Times ofattendance at thegeneral meetingof shareholdersLiu ChengyunNo99700No1Ou HuishengNo33100No1Liu Qizhong(resigned)
No88700No1Zhu XiaohuaiNo99800No3Wang ChengNo99800No3Zhang JianxingNo11100No0Yu Jingjing(resigned)
No77700No2Sheng LeimingYes99700No2Zhang HuaYes98710No1Zhao ZhanboYes99900No2Bai YunxiaYes99900No3
Explanations for personal absence from the meeting for two consecutive times
□Applicable √Not applicable
Times of the board meetings convened in current year9Including: times of on-site meetings0
Times of meetings convened through telecommunication7Times of meetings convened on-site and through telecommunication2
3030
Objections raised by directors on matters of the Company
□Applicable √Not applicable
Others
□Applicable √Not applicable
VII. Specialized committees under the Board of Directors
√Applicable □Not applicable
Members of specialized committees under the board of directors
Category of specialized committeeMembersAudit committeeBai Yunxia, Zhao Zhanbo, Sheng Leiming, Zhang HuaNominating committeeLiu Chengyun, Wang Cheng, Zhao Zhanbo, Sheng Leiming, Zhang HuaRemuneration and appraisal committeeZhao Zhanbo, Zhang Jianxing, Bai Yunxia, Zhang HuaStrategy committeeLiu Chengyun, Ou Huisheng, Zhang Jianxing, Bai Yunxia, Zhao Zhanbo
4 meetings convened by the audit committee during the reporting period
Convening
date
ContentsImportant comments and suggestions
Other performance
of dutiesApril 11, 2022
Reviewed the "Proposal on Reviewing 2022 Audit WorkPlan of the Company", "Proposal on Reviewing 2021Internal Control Evaluation Report of the Company","Proposal on Reviewing Audit Committee’s PerformanceReport for 2021", and other proposals
All proposals at this meeting wereunanimously reviewed and approved.April 29, 2022
Reviewed the "Proposal on Reviewing the 2022 FirstQuarterly Report of the Company"
All proposals at this meeting wereunanimously reviewed and approved.August 30,2022
Reviewed the "Proposal on Reviewing the Full Text andSummary of 2022 Semi-Annual Report of the Company"
All proposals at this meeting wereunanimously reviewed and approved.October 25,2022
Reviewed the "Proposal on Reviewing the 2022 ThirdQuarterly Report of the Company"
All proposals at this meeting wereunanimously reviewed and approved.
2 meetings convened by the nominating committee during the reporting period
Convening
date
Contents
Important comments and
suggestions
Other performance
of dutiesAugust 30,2022
Reviewed the "Proposal on Reviewing the Appointment ofMr. Ou Huisheng as the General Manager (President) of theCompany", and the "Proposal on Reviewing the Election ofMr. Ou Huisheng as a Director of the Company"
All proposals at this meeting wereunanimously reviewed and approved.December12, 2022
Reviewed the "Proposal on Reviewing the Election of Mr.Zhang Jianxing as a Director of the Company", and the"Proposal on Reviewing the Appointment of Mr. Zhu Xiaohuaias the Executive General Manager of the Company"
All proposals at this meeting wereunanimously reviewed and approved.2 meetings convened by the remuneration and appraisal committee during the reporting periodConvening
date
ContentsImportant comments and suggestions
Other performance
of dutiesApril 11, 2022
Reviewed the "Proposal on Reviewing the Remunerationof Directors and Senior Executives of the Company forthe Year 2021"
All proposals at this meeting wereunanimously reviewed and approved.December12, 2022
"Proposal on Reviewing Mr. Zhang Jianxing’s DirectorSubsidy"
All proposals at this meeting wereunanimously reviewed and approved.
3131
2022
1 meeting convened by the strategy committee during the reporting periodConveningdate
ContentsImportant comments and suggestions
Other performance
of dutiesApril 11, 2022
Reviewed the "Proposal on Reviewing the '14
thFiveYear'Overall Development Plan of the Company"
All proposals at this meeting wereunanimously reviewed and approved.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 reportingperiod
Particulars about employees
Number of in-service employees of the parent company2,838Number of in-service employees of the main subsidiaries5,272Total of in-service employees8,110Number of retired employees required to be paid by the parent company and its major subsidiaries
FunctionsCategoryNumber of sta?Production sta?3,093Sales sta?292Technical sta?3,514Financial sta?152Administrative sta?1,059Total8,110
Education backgroundEducation levelNumber (person)Master and above691Undergraduate4,079Junior College1,817Below Junior College1,523Total8,110Remuneration policies
√Applicable □Not applicable
In line with the Company’s development strategy, the Company improved the remuneration distribution incentive systemand performance assessment system and established and improved the performance assessment system based on thedi?erent properties and characteristics of each entity and division; promoted the salary incentive system closely linking theperformance distribution with the unit or division performance, value contribution, industrial characteristics, growth phase andsimilar factors, and comprehensively linking the sta? performance with position duty and value contribution, and thus initiallyestablished the distribution mode integrating with the market.
3232
Training plan
√Applicable □Not applicable
In line with the Company’s development strategy, the Company improved the sta? training system. According to thetraining plan, the Company implemented the training in a planned way to improve the business skill level and professionalquality of sta? at various levels.Labor outsourcing
√Applicable □Not applicable
Total of labor outsourcing hours6,793,308 hoursTotal of labor outsourcing remunerationRMB 467,920,100X.Proposal for prot distribution or convention of capital reserves into bonus shares
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 CashDividend Distribution of Listed Companies (ZJF [2012] No. 37) issued by the CSRC, as proposed by the 10
thmeeting of theCompany’s 5
thBoard of Directors held on August 21, 2012, amendments were made to the Articles of Association of theCompany concerning prot distribution and cash dividends policy, and as a result, the dividend distribution standard andproportion 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. Noadjustments 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 approvedthe prot distribution plan for 2021. The prot 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 implementationof equity distribution. Details of the above prot distribution matters are set out in the “Announcement of the Annual ProtDistribution Plan for 2021” published by the Company on the Shanghai Securities News and the website of the ShanghaiStock Exchange (www.sse.com.cn). During the reporting period, the Company’s prot distribution plan for 2021 has beenimplemented.
As audited by Ernst & Young Hua Ming LLP, the Company achieved a net profit attributable to the owners of theparent company of approximately RMB 372 million in 2022. As at December 31, 2022, the undistributed prot of the parentcompany was approximately RMB 2.746 billion. The Board of Directors of the Company, taking into account the Company’sbusiness plan and capital demand in 2023, has prepared a prot distribution proposal for 2022: neither prot distribution nortransfer of the capital public reserves into paid-in capital. The prot distribution proposal has yet to be submitted to the 2022Annual General Meeting of Shareholders for consideration.
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 ofshareholders
√Yes □No
Specic and clear dividend standards and ratios√Yes □NoComplete decision-making procedure and mechanism√Yes □NoIndependent directors have faithfully performed their duties and played their due role√Yes □NoNon-controlling shareholders are able to fully express their opinion and demand and their legal rights andinterests are fully protected
√Yes □No
If the prot is positive in the reporting period and the prot of the parent company available for distribution tothe shareholders is positive but the Company does not represent the plan or proposal for prot distribution in cash,the Company shall disclose in detail the reasons and the purpose and use plan of the undistributed prot
√Applicable □Not applicable
3333
2022The reason for not representing the plan or proposal for prot distribution in cash
though the prot is positive and the prot of the parent company available fordistribution to the shareholders is positive in the reporting period
Purpose and use plan of the
undistributed protThe national policy sets a tone to expand domestic demand, proposing to increaseinvestment in the optimization and upgrading of traditional manufacturing industries, expandinvestment in advanced manufacturing, and improve the quality and efficiency of themanufacturing supply system. A new round of technological revolution represented by digitaltechnology is ourishing worldwide, the industrial digitalization in equipment manufacturing,port industry, marine engineering and other elds has become the trend of the times, andthe transformation and upgrading of digital and intelligent manufacturing of companies havebecome more urgent.Taking into account the current state of the industry, the Company’s development strategy,operation and business planning for the next phase, based on the Company’s capital needsfor 2023, asset-liability structure and the need to promote the sustainable development ofvarious businesses, and according to the “Regulatory Guidelines for Listed Companies No.3 - Cash Dividends of Listed Companies” issued by the CSRC and the relevant provisionsof the “Articles of Association” on prot distribution policy, in order to ensure the long-termhealthy and sustainable development of the Company, steadily promote the subsequentdevelopment and better safeguard the shareholders’ long-term interests, the Company willnot distribute prots or transfer capital reserve to share capital for the year 2022.
The Company’s undistributed profits for2022 are rolled over to the next year tomeet the Company’s needs for generalworking capital, optimization of asset-liabilitystructure and future prot distribution. In thefuture, the Company will, as always, attachimportance to rewarding shareholdersby cash dividends, strictly comply withrelevant laws and regulations as well as theprovisions of the “Articles of Association”,comprehensively consider various factorsrelated to profit distribution, actively fulfillthe Company's prot distribution policy fromthe perspective of facilitating the Company’sdevelopment and shareholders’ return, andshare the results of company developmentwith investors.Prot 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 andtheir impactsRelated incentives disclosed in provisional announcement, without progress or change in follow-up implementation
□Applicable √Not applicable
Incentives not disclosed in provisional announcement or with follow-up progressEquity incentivesOther description
□Applicable √Not applicable
Information about employee stock ownership plan
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
Equity incentives awarded to the directors and senior executives during the reporting period
□Applicable √Not applicable
Establishment and implementation of the assessment mechanism and incentive mechanism for seniorexecutives during the reporting period
√Applicable □Not applicable
The Company appoints the directors, supervisors and senior executives in accordance with the provisions of CompanyLaw and the Articles of Association, has built up a preliminary cultivation, selection, supervision, assessment, rewardand punishment, constraint system for the Company’s senior executives suitable for the actual situation. The Companyformulated corresponding administrative methods for senior executives. According to the production and development needof the Company, the senior executives are appointed, resigned and assessed following the principles of “being from top tobottom integrating the virtue and talent”, and are subject to annual appraisal by the Company according to the due diligenceand 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 theCompany, to continue to stimulate the enthusiasm of the senior executives, to create new achievements, and to ensure thebenet maximization and standard operation of the Company.
3434
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 ve aspectsincluding internal environment, risk management, major control activities, information and communication, and internalsupervision and evaluation. In the meanwhile, through internal self-inspection, daily and special supervision, and internalcontrol evaluation, the Company ensured the effective implementation of relevant management requirements, smoothcommunication of feedback information, and timely rectication of defects.According to the control requirements, the internal control system of the Company integrated the business systems andthe management ow, established the internal control, risk and compliance management systems such as “ImplementationRules for Internal Control Management Audit”, “Regulations on Comprehensive Risk Management” and “Regulations onCompliance Management”, and formulated a power and responsibility manual to make clear the control nodes and approvalow of various operation and management matters, and improved the beforehand, intermediate and afterwards risk controlmechanisms and established a strict internal control system.The Company continuously carried out annual internal control evaluation and internal control audit, and the annualreport on internal control evaluation was submitted to the Board of Directors for discussion. In accordance with the BasicStandard for Enterprise Internal Control and its supporting guidelines, the Company, in combination with its own structureand characteristics, comprehensively evaluated the reasonableness and operational effectiveness of the internal controldesign over the internal environment, risk assessment, control activities, information and communication, internal supervisionand other elements of the Company, found out the potential deficiencies or defects at all levels, further strengthenedand standardized the construction of the Company's internal control and improved the management quality and the riskprevention capability. Meanwhile, the Company entrusted an external professional audit rm to conduct the internal controlaudit every year. Through the external audit, according to the requirements on internal control, the risks were e?ectivelyidentied, evaluated, controlled, monitored and improved to organically integrate risk management, internal control and dailyoperation activities, and e?ectively control and prevent various risks to ensure the sustainable and stable development of theCompany.Description of the important deciencies 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, regulationsand rules, the Company continued to strengthen the management and supervision of its subsidiaries on standardizedoperation, information disclosure, nancial capital and operation, and timely track the nancial status of subsidiaries andother significant matters to ensure legal compliance of operation and management, assets safety, truthful and completenancial reports and related information, and to further enhance the operation management and risk management capabilityof 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 e?ectiveness of the internal control of thenancial statement as of December 31, 2022 and issued a standard internal control audit report with clean opinion (see theannouncement 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 opinionXV.Remediation of problems identified by self-inspection in the special action on the governance of listedcompanies
NoneXVI.Others
□Applicable √Not applicable
3535
2022Section VEnvironmental and Social ResponsibilityI. Environmental Information
Establishment of environmental protection-related mechanismsYesFunds invested in environmental protection during the reporting period (Unit: RMB’0,000)17,390.77
Information about environmental protection of the Company and its subsidiaries as the key pollutant dischargeunits 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 majorsubsidiaries: 0.0331 tons of sulfur dioxide, 0.1903 tons of nitrogen oxide, 40.4618 tons of particulate matter, 219.0549 tons ofVOCs, 363.5386 tons of COD, 41.1959 tons of ammonia nitrogen, 0.2376 tons of total phosphorus, and 54.8459 tons of totalnitrogen. 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 theenterprise, all kinds of pollutants discharged by the Company meet the corresponding emission limits specied 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 Dischargeto 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 EmissionStandard 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 Standardof Air Pollutants for Industrial Kiln and Furnace” (DB31/860-2014) of Shanghai City, “Integrated Wastewater DischargeStandard” (DB31/199-2018) of Shanghai City, “Integrated Emission Standard of Air Pollutants” (DB32 4041-2021) ofJiangsu Province, “Emission Standard of Air Pollutants for Surface Coating of Engineering Machinery and Steel StructureManufacturing Industry” (DB32/4147-2021) of Jiangsu Province, and “Emission Standard of Air Pollutants for IndustrialFurnace and Kiln” (DB32/3728-2020) of Jiangsu Province.
For details of the pollutant emissions of the Company and major subsidiaries, see the table below.Name of thecompany orsubsidiary
Name of mainpollutant andcharacteristic
pollutant
EmissionmodeNumberofoutletsDistributionof outlets
Emissionconcentration
Applicable pollutant emission standards
Totalemissions
in 2022
(ton)
Permittedemissions
in 2022
(ton)
Over-standardemissions
in 2022ShanghaiZhenhua HeavyIndustries Co., Ltd.Changxing Branch
SO
Organizedemission
57 (3out ofservice)
Pretreatment,
sandwashing,coating and
canteen
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015) of Shanghai City, EmissionStandards of Pollutants for Shipbuilding Industry(DB31/934-2015), Emission Standards for OdorPollutants (DB31/1025-2016), Emission Standard ofCooking Fume (DB31-844-2014), and Standard forFugitive Emission of Volatile Organic Compounds(GB37822-2019)
00.066None
NOx01.046NoneParticulate matter13.49116.306None
VOCs149.129174.047None
COD
Wastewater
outlet
Integrated Wastewater Discharge Standard(DB31/199-2018) of Shanghai City
276.818338.590None
Ammonia nitrogen31.41337.160None
Total nitrogen50.445121.790NoneShanghai ZhenhuaPort MachineryHeavy IndustriesCo., Ltd.
Particulate matter
Organizedemission
Sandwashing,coating and
canteen
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015), Emission Standards for OdorPollutants (DB31/1025-2016) and Emission Standardof Air Pollutants for Boiler (DB31/387-2018) ofShanghai City, and Standard for Fugitive Emission ofVolatile Organic Compounds (GB37822-2019)
3.481121.941None
VOCs46.8653.100NoneShanghai ZhenhuaHeavy Industries PortMachinery GeneralEquipment Co., Ltd.
Particulate matter
Organizedemission
7 (2out ofservice)
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015) and Emission Standards for OdorPollutants (DB31/1025-2016) of Shanghai City, andStandard for Fugitive Emission of Volatile OrganicCompounds (GB37822-2019)
11.55530.140None
VOCs5.51045.560None
3636
Name of thecompany orsubsidiary
Name of mainpollutant andcharacteristicpollutant
EmissionmodeNumberofoutlets
Distributionof outlets
Emissionconcentration
Applicable pollutant emission standards
Totalemissionsin 2022(ton)Permittedemissionsin 2022(ton)
Over-standardemissionsin 2022ShanghaiZhenhua HeavyIndustries Co., Ltd.Nantong Branch
Particulate matter
Organizedemission
Sandwashing andcoating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996), Integrated Emission Standard of AirPollutants (DB324041-2021) and Emission Standardof Air Pollutants for Surface Coating of EngineeringMachinery and Steel Structure Manufacturing Industry(DB32/4147-2021) of Jiangsu Province
9.07-None
VOCs10.4558-NoneCOD
Wastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
39.6447139.364None
Ammonianitrogen
0.06211.230None
Nantong ZhenhuaHeavy EquipmentManufacturingCo., Ltd.
SO2
Organizedemission
Pretreatment,
sandwashing,coating,hazardous
wastewarehouseand canteenMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996), Integrated Emission Standard of AirPollutants (DB324041-2021), Emission Standard ofAir Pollutants for Surface Coating of EngineeringMachinery and Steel Structure Manufacturing Industry(DB32/4147-2021) and Emission Standard of AirPollutants for Industrial Furnace and Kiln (DB32/3728-2020) of Jiangsu Province, and Emission Standardsfor Odor Pollutants (GB14554-1993)
00.010None
NOx00.044NoneParticulate matter0.821673.225None
VOCs1.02771716.125None
COD
Wastewateroutlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
8.05285131.530None
Ammonianitrogen
2.822898.850
Total phosphorus0.2376051.468Total nitrogen4.40090513.767NoneZPMCTransmissionMachinery(Nantong) Co.,Ltd.
SO2
Organizedemission
Heattreatment,sand washingand coatingMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996), Emission Standard of Air Pollutants forBoiler (GB13271-2014), Integrated Emission Standardof Air Pollutants (DB324041-2021) of JiangsuProvince, and Emission Standards for Odor Pollutants(GB14554-1993)
0.0320.427None
NOx0.150.167NoneParticulate matter0.635.561None
VOCs0.617.400None
COD
Wastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
14.363-None
Ammonianitrogen
2.388-None
ZPMC QidongMarineEngineering Co.,Ltd.
SO2
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996), Emission Standards for Odor Pollutants(GB14554-1993), Integrated Emission Standard ofAir Pollutants (DB324041-2021) of Jiangsu Province,and Emission Standard of Air Pollutants for Boiler(GB13271-2014)
00.00018None
NOx00.002NoneParticulate matter0.941.090None
VOCs1.326.600None
COD
Domesticwastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
5.524.350None
Ammonianitrogen
0.561.390None
Shanghai PortMachinery HeavyIndustry Co., Ltd.
SO2
Organizedemission
Sandwashing and
coatingMeetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015), Emission Standards for OdorPollutants (DB31/1025-2016), and Emission Standardof Air Pollutants for Boiler (DB31/387-2018) ofShanghai City
0.00110.00357None
NOx0.04030.0858NoneParticulate matter0.4730.50475None
VOCs4.1424-None
COD
Wastewater
outlet
Integrated Wastewater Discharge Standard(DB31/199-2018)
19.16-None
Ammonianitrogen
3.95-None
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 therequirements on the industrial policy, continued to carry out environmental protection compliance improvement activities,improved the environmental protection system including “Environmental Protection Responsibility System”, guided theemployees to give full play to their subjective initiative and strengthened supervision to ensure the control objectives werecompliant and under control. During the reporting period, the Company and the subsidiaries strengthened the comprehensivemanagement of waste gas, waste water, noise and hazardous waste, and various pollution prevention and control facilitiesfunctioned normally.
3737
2022In 2022, Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, a subsidiary of the Company, promotedthe hot-dip galvanizing workshop underground pipe network renovation project; Shanghai Zhenhua Port MachineryHeavy Industries Co., Ltd. promoted the technical improvement project of painting automatic production line; ShanghaiZhenhua Heavy Industries Port Machinery General Equipment Co., Ltd. promoted the rainwater and sewage pipe networkrestoration and treatment projects; Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch completed the upgradeand reconstruction of existing painting workshop end treatment equipment, new hazardous waste warehouse and otherprojects; ZPMC Qidong Marine Engineering Co., Ltd. completed the end treatment equipment upgrading and renovationproject of the pre-treatment workshop, and the end treatment upgrading and renovation project of the painting workshophas been installed and tested for acceptance; Shanghai Port Machinery Heavy Industry Co., Ltd. installed 12 sets of weldingfume control facilities in the steel structure workshop; ZPMC Transmission Machinery (Nantong) Co., Ltd. completed thereplacement process of water-based paint on the surface of typical parts such as the inner surface of the box, the spokes ofthe gears and the inner surface of the planetary frame, completed the installation and networking of environmental protectionvideo 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 technicalimprovement 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 subsidiariesstrictly implemented the relevant management regulations of “Three Simultaneities” for environmental protection of nationaland local construction projects, and the projects had gone through the procedures of environmental impact assessment andcompletion 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 subsidiaryKey projects in 2022EIA approval / acceptanceShanghai Zhenhua Heavy IndustriesCo., Ltd.
ZPMC Changxing intelligent port equipment industry projectEIA approval has been obtainedShanghai Zhenhua Heavy IndustriesCo., Ltd. Changxing Branch
Intelligent manufacturing workshop for crane box of automated terminal of Shanghai Zhenhua Heavy Industries
Co., Ltd.
Independent acceptance
completedShanghai Zhenhua Port MachineryHeavy Industries Co., Ltd.
Technical improvement project of painting automatic production line
Acceptance publicannouncement has been madeShanghai Zhenhua Heavy IndustriesCo., Ltd. Nantong Branch
Supporting project of new A-class warehouse and self-use diesel supply point of Nantong Zhenhua HeavyEquipment Manufacturing Co., Ltd.
Construction in batches; partialacceptance has been completedSand washing and painting workshop reconstruction and waste gas treatment upgrading projectCompleted and acceptedNantong Zhenhua Heavy EquipmentManufacturing Co., Ltd.
Expansion of 100,000t/a sand washing paint steel components to 200,000t/a and 2,980t stainless steel andnonferrous metal pipe ttings project of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.
Independent acceptance
completedPre-treatment workshop exhaust gas and painting workshop waste gas upgrading project
Independent acceptance
completedPainting workshop (13-1/13-2) waste gas treatment facilities upgrading project
EIA registration form ling
completedZPMC Qidong Marine EngineeringCo., Ltd.
Pre-treatment exhaust gas treatment project (regenerative combustion RTO) of ZPMC Qidong MarineEngineering Co., Ltd.
EIA registration form ling
completedPainting workshop exhaust gas treatment project (zeolite roller + regenerative combustion RTO) of ZPMCQidong Marine Engineering Co., Ltd.
EIA registration form ling
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 thesubsidiaries have successively applied for pollutant emission permits and applied for the change of pollutant emissionpermits according to the actual discharge changes, and have obtained the “Pollutant Emission Permit” issued by localecological and environmental protection department. In strict accordance with the requirements of emission permit, theCompany continued to discharge pollutant as permitted, carried out self-monitoring, established accounts, reported regularlyand made information public.
3838
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 themquickly and e?ectively after the occurrence, in accordance with the “Environmental Protection Law of the People’s Republicof China”, “Law of the People’s Republic of China on the Prevention and Control of Water Pollution”, “Law of the People'sRepublic of China on the Prevention and Control of Atmospheric Pollution”, “Law of the People's Republic of China on thePrevention and Control of Solid Waste Pollution”, “Measures for the Administration of Recording the Emergency Plan forEmergent Environmental Events of Enterprises and Institutions (Trial)”, “Guidelines for the Compilation of Risk AssessmentReport on Environmental Emergencies in Enterprises (Trial)”, the branches and subsidiaries of the Company assessed theexisting environmental risks, prepared the emergency plans, and filed them with the local ecological and environmentalprotection department. During the reporting period, all subordinate units revised, reviewed and filed the emergencyplan as required, and also actively carried out emergency drills to further prevent and e?ectively respond to unexpectedenvironmental 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 pollutantdischarge 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 asNational Pollution Source Monitoring Information Management and Sharing Platform, Shanghai Integrated Pollution SourceManagement Information System, Shanghai Environmental Information Disclosure Platform for Enterprises and Institutionsand 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 andlocal 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 forenvironmental 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 inthe list of mandatory cleaner production audits by Shanghai Municipal Bureau of Ecology and Environment and ShanghaiMunicipal 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 materialconsumption, energy and resource consumption, pollution sources outlets and pollutants discharge, and has preliminarilydetermined the non/low cost option and medium/high cost option. clean production audit report is being prepared. Thecleaner production audit report is under preparation. The cleaner production audit and acceptance is expected to becompleted by the end of September 2023.
Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd., subordinate to the Company, has been included in the listof mandatory cleaner production audit enterprises in 2022. In the future, Shanghai Zhenhua Port Machinery Heavy IndustriesCo., Ltd. will strengthen the implementation of corporate entity responsibilities, organize and implement cleaner productiontechnology transformation and improve the level of cleaner production in accordance with relevant requirements.
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 protectionpenalties of RMB 456,303 for mobile paint shed built before approval and put into operation before acceptance, outdoorpaint operations, and storing some industrial solid waste such as scrap iron in the open air. ZPMC Zhangjiagang PortMachinery Co., Ltd. immediately rectied the illegal and non-compliant issues involved, and stored industrial solid waste incompliance; for the mobile paint shed, the company has obtained environmental impact assessment approval and completedindependent acceptance; all closed-loop rectication has been completed.
3939
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 wastewater 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 atmosphericpollutants such as the particulate matter and VOCs in waste gas were discharged in the manner of organized discharge aftertreatment; the exhaust gas treatment facilities in the mobile paint room have been upgraded and accepted; the solid wastesand the hazardous wastes were handed over to the qualied entities for treatment; plant boundary noise was discharged upto 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
Information that is conducive to ecological protection, pollution prevention and environmental responsibilityperformance
□Applicable √Not applicable
Measures taken to reduce carbon emissions during the reporting period and their e?ectsCarbon reduction measures taken or notYesCarbon dioxide equivalent emissions reduced (in tons)20,303Types of carbon reduction measures (e.g., using clean energyfor power generation, using carbon reduction technologies in theproduction process, developing and producing new products thatcontribute to carbon reduction, etc.)
Distributed photovoltaic power generation, green lighting transformation,high-temperature carburizing transformation of heat treatment furnaces,adoption of energy-saving and efficient equipment, and air compressorstation control system transformation, etc.
Specic description
√Applicable □Not applicable
The Company has installed and constructed rooftop distributed photovoltaic power generation systems in many subsidiariesincluding Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd., Shanghai Zhenhua Heavy Industries Co., Ltd. ChangxingBranch, and Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd., adopting the mode of Max. Self Use and surplus powerfed to the grid. In 2022, all units of the Company self-consumed a total of 28.69 million kwh of PV power, reducing carbon dioxideemissions 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 e?cient equipment, and the completion of other energy-saving renovation projects and measures, an annual savingsof approximately 1,800 tons of standard coal and a reduction of approximately 4,680 tons of carbon dioxide emissions have beenachieved.II.Fulllment of social responsibility
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 ShanghaiZhenhua Heavy Industries Co., Ltd." disclosed on the same day as this report.
Particulars about social responsibility work
□Applicable √Not applicable
Specic description
√Applicable □Not applicable
ZPMC attached great importance to the construction of social responsibility, incorporated the concept of “making beautyfor the world” into the company’s corporate culture concept system, and continued to promote high-quality development of thecompany 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 Companycontinued to improve its social responsibility and ESG management effectiveness, revised the “ZPMC Social ResponsibilityManagement Measures” and other institutional documents, participated in drafting the “Enterprise ESG Evaluation System” associationstandard and “Guidance for Enterprise ESG Disclosure” association standard led by the China Enterprise Reform and DevelopmentSociety, and completed the standard release in 2022, laying the foundation for standardized report writing and other work.
4040
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 “SmallWish” 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 consumerspending on products from poor areas. In 2022, the Company invested a total of RMB 1,136,400 and introduced external fundsof RMB 50,000 for material donation, talent training, local agricultural products procurement and workwear customization in theassistance areas; held 2 job fairs in the assistance areas and recruited 111 laborers; took advantage of the party building workof state-owned enterprise and carried out joint party building activities with the general Party branch of Yongan Communityin Lamping County, presented gifts to local veteran party members and confirmed the twinning support relationship with 10outstanding students.III.Specic work on consolidating and expanding the progress in poverty alleviation and rural revitalization
√Applicable □Not applicable
Item of poverty alleviation andrural revitalization
Amount/contentDescriptionTotal investment (’0,000 Yuan)113.64Including: fund (’0,000 Yuan)30The fund was used to support the construction of CCCC Lushui New Era Hope SchoolAmount equivalent to goodsand materials (’0,000 Yuan)
83.64
They were donated to Zhenhua Kindergarten in Tu’e Town, the Yongan CommunityKindergarten, and CCCC Lanping New Era Hope SchoolNumber of people beneted(person)
1,147This data represented the direct beneficiaries of various donations, includingeducation donations and creating job opportunities, while the number of peoplebeneted from the consumption of products from poor areas and “the action of aidingXinjiang with work clothes” and other projects cannot be directly counted.Forms of assistance (such asdevelopment of local industry,creating job opportunities,improving education)
Improving education, creating jobopportunities, and boosting theconsumption of products from poorareas
Specic description
√Applicable □Not applicable
InvestigationIn 2022, the research team visited Yongan Community Kindergarten and CCCC Lanping New Era Hope School to gaina deeper understanding of the assistance e?ect and concern about the follow-up assistance needs.Capital investmentThe 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 Townaccording to the 2022 targeted assistance work plan. The Company provided grount paint worth RMB 12,000 to thebasketball court renovation project of Yongan Community, and actively introduced RMB 50,000 of private construction fundsto donate camera kits and early childhood teaching aids and appliances to Yongan Community Kindergarten. The YouthLeague Committee of ZPMC, together with Lanping County Committee of Communist Youth League, carried out the “Makinga Small Dream True” for the poor students in CCCC Lanping New Era Hope School and nanced and invested RMB 25,100to make wishes of 200 in-campus students true.Talents and employment supportAccording to the actual needs of Lanping County, the Company trained 10 grassroots cadres and 1 rural revitalizationleader for the paired assistance areas. Changxing Branch, of the Company sent representatives to Lanping County to carryout 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 LanpingCounty throughout the year.
4141
2022Consumption assistanceThe Company organized the purchase and initiated employees to buy the characteristic agricultural products fromthe assistance areas, including red soft rice, walnut oil, dendranthema morifolium and black Chinese wolfberry; activelycontacted the external units and sold the agricultural products such as rose and dendranthema morifolium for consumptionassistance; actively implemented the action of “aiding Xinjiang with work clothes”, and 5 units under the Company ordered2,971 sets of work clothes and 252 pairs of work shoes from Yengisar County.
Pairing of Party buildingIn 2022, the Third Party Branch of the Party Committee of the Company Headquarters and the General Party Branchof Yongan Community in Lanping County jointly carried out the Party day activity on the theme of “Zongzi connects the twoplaces”. The Third Party Branch of the Party Committee of the Company Headquarters presented Dragon Boat Festival giftsto 39 veteran Party members of Yongan Community Party Branch; 10 party members of the Third Party Branch conrmedthe assistance relationship with 10 junior students of the Yongan Community and donated learning materials to them. TheShanghai-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 comprehensivelypromoting the rural revitalization work.Strengthening propagandaThe Company actively propagandized the results of assistance work through the Wechat official accounts of theheadquarters and the units under it, and released 8 promotional articles on assistance themes throughout the year, whichreceived wide attention.
4242
Section VIImportant EventsI.Fulllment of commitments
Commitments of the Company’s actual controller, shareholders, related parties and acquirer, as well as theCompany during the reporting period or ongoing at the period-end
□Applicable √Not applicable
If there is earnings forecast for the assets or projects of the Company and the reporting period is still in theearnings forecast period, the Company shall explain whether the asset or project reaches the original earningsforecast and give the reasons
□Reached □Failing to reach √Not applicable
Fulllment of commitments on the performance and its impacts on goodwill impairment test
□Applicable √Not applicable
II.Non-operating funds occupied by the holding shareholder and other related parties 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 accountingpolicies and accounting estimates or correction of signicant accounting errors
Analysis and explanation of the Company on the causes and the impacts of the changes in accounting policiesand accounting estimates
□Applicable √Not applicable
Analysis and explanation of the cause of correction of signicant accounting errors and their impacts by the Company
□Applicable √Not applicable
Communication with former CPA rm
□Applicable √Not applicable
Other description
□Applicable √Not applicable
VI. Engagement and dismissal of the public accounting rm
Unit: Yuan Currency: CNYNow engagingName of the domestic accounting rmErnst & Young Hua Ming LLPRemuneration of the domestic accounting rm4,800,000Audit term of the domestic accounting rm7Name of Certied Public Accountant of the domestic accounting rmGao Chong, Gu ChengliConsecutive years of audit services provided by CPAs of thedomestic accounting rm
1, 4
4343
2022NameRemunerationAccounting rm performing internal control auditErnst & Young Hua Ming LLP450,000Particulars about the engagement and dismissal of the accounting rm
√Applicable □Not applicable
At the 9
th meeting of the 8
th
Board of Directors held on April 13, 2022 and the 2021 Annual General Meeting ofShareholders of the Company held on June 27, 2022, the Company reviewed and approved the "Proposal on theEngagement of Domestic Audit Accounting Firm for the Year 2022" and agreed to renew the engagement of Ernst & YoungHua Ming LLP as the domestic auditing rm of the Company for the year 2022.
Particulars about reappointment of the accounting rm in the auditing period
□Applicable √Not applicable
VII. Delisting riskReasons for the delisting risk warning
□Applicable √Not applicable
Countermeasures to be taken by the Company
□Applicable √Not applicable
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
Lawsuit and arbitration already disclosed in provisional announcement, without follow-up progress
□Applicable √Not applicable
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:
Plainti?(applicant)
Defendant(respondent)
Partybearing
jointliabilities
Type oflawsuit
andarbitration
Background of the lawsuit (arbitration)
Amountinvolvedin lawsuit(arbitration)
Estimatedliabilitiesand amount
causedby lawsuit(arbitration)
or not
Progressin lawsuit(arbitration)
Results of the lawsuit
(arbitration) and
impacts
Execution ofadjudication
of lawsuit(arbitration)
ShanghaiZhenhuaHeavyIndustriesCo., Ltd,and ZPMCQidongMarineEngineeringCo., Ltd.
NantongHuafu PortCo., Ltd, LiAidong, andZhao Xiaohua
NoneLawsuit
At the end of February 2014, the Companycompleted the acquisition of the formerJiangsu Daoda Ocean Engineering Co.,Ltd through capital increase and held 67%of the shares. At the same time, it wasagreed that the losses of the company,was borne by the former shareholdersincluding Nantong Huafu Port Co., Ltd, LiAidong and Zhao Xiaohua before February28, 2014. During the subsequent businessprocess, it was found that the formerDaoda Company untruthfully disclosedsome matters of lawsuit or debts, resultingin a series of losses of the Company.Through the related audit and readjustmentetc., it was deemed that the loss of RMB
368.7221 million Yuan should be in borne
in the former shareholders and the lawsuitwas prosecuted again after an inconclusivepress for payment.
36,872.210
On March29, 2022,the SupremePeople’s Courtissued a naljudgment onthe case.
The rst item of the rstjudgment of the ShanghaiHigh People’s Court wasa?rmed; the secondto fth items of the rstjudgment were reversed;the three defendants wereordered to pay the totalcosts and damages ofRMB 27,433,970 and thecorresponding overdueinterest to ZPMC QidongMarine Engineering Co.,Ltd.; the rst trial verdictthat the respondentsshould compensateShanghai Zhenhua HeavyIndustries Co., Ltd of RMB1 million for the breach ofcontract were a?rmed.
Anenforcementstrategystudyhas beenconductedand anapplicationforenforcementwill be ledwith thecourt.
4444
Other description
□Applicable √Not applicable
X.Punishments on the Company as well as its directors, supervisors, senior executives, controlling shareholderand actual controller for violation of laws or regulations, as well as the relevant rectications
□Applicable √Not applicable
XI.Particulars about the credit standings of the Company and its controlling shareholder and the actual controllerduring the reporting period
□Applicable √Not applicable
XII.Material related transactionsRelated 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 8
th
Board of Directors on April 13, 2022 and the 2021 Annual General Meeting of Shareholders ofthe Company on June 27, 2022 reviewed and approved the "Proposal on Reviewing the Signing of Framework Agreementon 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: CNYRelated partyRelationship
Type ofrelatedtransaction
Content of relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of relatedtransaction
Proportionin theamountof similartransactions(%)
Settlement
mode of
associatedtransaction
Market price
Reasonfor greatdi?erencesbetweenthe bargainprice andmarketpriceJiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
Joint venture
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
1,288,582,3561,288,582,3564.27
Monetary
funds
1,288,582,356/China Road & BridgeCorporation
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
446,539,717446,539,7171.48
Monetary
funds
446,539,717/China Harbor EngineeringCo., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
441,437,766441,437,7661.46
Monetary
funds
441,437,766/CCCC Haifeng Wind PowerDevelopment Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
374,901,683374,901,6831.24
Monetaryfunds
374,901,683/No.1 Engineering Co.,Ltd. of CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
213,716,814213,716,8140.71
Monetaryfunds
213,716,814/No.2 Engineering Co., Ltd.of CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
208,387,950208,387,9500.69
Monetary
funds
208,387,950/CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
167,241,398167,241,3980.55
Monetary
funds
167,241,398/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
124,835,563124,835,5630.41
Monetary
funds
124,835,563/CCCC Third HighwayEngineering Co. Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
57,013,91657,013,9160.19
Monetary
funds
57,013,916/CCCC Fourth HarborEngineering Co., Ltd
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
45,044,24845,044,2480.15
Monetary
funds
45,044,248/CCCC Second HighwayEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
36,106,34436,106,3440.12
Monetary
funds
36,106,344/CCCC Tianhe MechanicalEquipment ManufacturingCo., Ltd
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
32,668,69032,668,6900.11
Monetary
funds
32,668,690/China CommunicationsConstruction Company Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
28,946,17828,946,1780.10
Monetary
funds
28,946,178/Road & Bridge InternationalCo., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
10,764,51010,764,5100.04
Monetary
funds
10,764,510/CCCC - SHEC SecondHighway Engineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
8,060,0138,060,0130.03
Monetary
funds
8,060,013/CCCC Tianjin Industry andTrade Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
6,767,1816,767,1810.02
Monetary
funds
6,767,181/CCCC Second HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
3,102,3053,102,3050.01
Monetary
funds
3,102,305/
4545
2022
Related partyRelationship
Type ofrelatedtransaction
Content of relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of related
transaction
Proportion
in theamountof similartransactions
(%)
Settlementmode ofassociatedtransaction
Market price
Reasonfor greatdi?erencesbetweenthe bargainprice andmarketpriceZPMC Southeast Asia Pte.Ltd
Associated company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
2,611,7252,611,7250.01
Monetaryfunds
2,611,725/Road and Bridge ConstructionChongqing FengshiExpressway DevelopmentCo., Ltd
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
1,202,8801,202,8800.00
Monetary
funds
1,202,880/CCCC Tianjin Dredging Co.,Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
1,198,9381,198,9380.00
Monetaryfunds
1,198,938/CCCC Shanghai EquipmentEngineering Co., Ltd.
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
838,967838,9670.00
Monetary
funds
838,967/CCCC Construction GroupCo., Ltd. (former: CCCCFourth Highway EngineeringCo., Ltd.)
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
270,456270,4560.00
Monetary
funds
270,456/CCCC (Xiamen) InformationCo., Ltd
Subsidiary of theholding parent company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
166,240166,2400.00
Monetary
funds
166,240/ZPMC Changzhou CoatingsCo., Ltd.
Associated company
Sales ofgoods
Project income/lease of assets
Pricing basedon market price
160,463160,4630.00
Monetary
funds
160,463/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
283,109,058283,109,0580.94
Monetary
funds
283,109,058/CCCC Third HighwayEngineering Co. Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
36,092,54036,092,5400.12
Monetary
funds
36,092,540/Road and Bridge ConstructionChongqing FengfuExpressway DevelopmentCo., Ltd
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
2,335,0102,335,0100.01
Monetary
funds
2,335,010/Jiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
Joint venture
Rendering of
service
Project income/lease of assets
Pricing basedon market price
1,826,0831,826,0830.01
Monetary
funds
1,826,083/Shanghai Jiangtian IndustrialCo., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
1,504,4881,504,4880.00
Monetary
funds
1,504,488/CCCC Shanghai DredgingCo., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
1,458,1991,458,1990.00
Monetary
funds
1,458,199/China Road & BridgeCorporation
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
1,201,7901,201,7900.00
Monetary
funds
1,201,790/Road and Bridge ConstructionChongqing FengshiExpressway DevelopmentCo., Ltd
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
756,398756,3980.00
Monetary
funds
756,398/CCCC Second HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
567,172567,1720.00
Monetary
funds
567,172/CCCC Tianjin Dredging Co.,Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
471,698471,6980.00
Monetary
funds
471,698/CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
452,830452,8300.00
Monetary
funds
452,830/No.2 Engineering Co.,Ltd. of CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
188,679188,6790.00
Monetary
funds
188,679/Chongqing YongjiangExpressway Investment andConstruction Co., Ltd of FHECof CCCC
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
172,087172,0870.00
Monetary
funds
172,087/China CommunicationsInformation Technology GroupCo., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
47,83047,8300.00
Monetary
funds
47,830/Road & Bridge InternationalCo., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
41,03841,0380.00
Monetary
funds
41,038/ZPMC Changzhou CoatingsCo., Ltd.
Associated company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
40,20140,2010.00
Monetary
funds
40,201/Jiujiang Education ConsultingCo., Ltd of CCCC SecondHarbor Engineering Co., Ltd.
Subsidiary of theholding parent company
Rendering of
service
Project income/lease of assets
Pricing basedon market price
1,6981,6980.00
Monetary
funds
1,698/No.2 Engineering Co., Ltd.of CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
452,903,273452,903,2731.73
Monetary
funds
452,903,273/CCCC Shanghai EquipmentEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
368,095,891368,095,8911.41
Monetary
funds
368,095,891/CCCC First HighwayEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
293,136,519293,136,5191.12
Monetary
funds
293,136,519/CCCC Second HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
227,255,981227,255,9810.87
Monetary
funds
227,255,981/
4646
Related partyRelationship
Type ofrelatedtransaction
Content of related
transaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of related
transaction
Proportion
in theamountof similartransactions
(%)
Settlement
mode ofassociatedtransaction
Market price
Reasonfor greatdi?erences
betweenthe bargainprice andmarketpriceCCCC Third HighwayEngineering Co. Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
220,317,269220,317,2690.84
Monetary
funds
220,317,269/CCCC Tianjin Dredging Co.,Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
152,397,803152,397,8030.58
Monetaryfunds
152,397,803/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
134,197,024134,197,0240.51
Monetaryfunds
134,197,024/Road & Bridge East ChinaEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
50,674,33750,674,3370.19
Monetaryfunds
50,674,337/ZPMC Southeast Asia Pte.Ltd
Associated company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
40,615,97240,615,9720.16
Monetary
funds
40,615,972/CCCC Construction GroupCo., Ltd. (former: CCCCFourth Highway EngineeringCo., Ltd.)
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
28,301,88728,301,8870.11
Monetary
funds
28,301,887/China CommunicationsInformation Technology GroupCo., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
18,659,88118,659,8810.07
Monetary
funds
18,659,881/Jiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
Joint venture
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
14,150,94314,150,9430.05
Monetary
funds
14,150,943/CCCC Shanghai DredgingCo., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
9,147,0739,147,0730.03
Monetary
funds
9,147,073/Shanghai CommunicationsConstruction Contracting Co.,Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
7,018,9837,018,9830.03
Monetary
funds
7,018,983/China Road & BridgeCorporation
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
4,281,6214,281,6210.02
Monetary
funds
4,281,621/Shanghai ChinaCommunications WaterTransportation Design &Research Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
4,139,1514,139,1510.02
Monetary
funds
4,139,151/CCCC Second HighwayConsultants Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
3,475,4623,475,4620.01
Monetary
funds
3,475,462/CCCC First HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
2,321,3732,321,3730.01
Monetary
funds
2,321,373/Shanghai Waterway LogisticsCo., Ltd
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
1,492,6581,492,6580.01
Monetary
funds
1,492,658/Installation Engineering Co.,Ltd. of CCCC First HarborEngineering Co. Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
1,344,3401,344,3400.01
Monetary
funds
1,344,340/Shanghai Interlink Road &Bridge Engineering Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
1,159,9171,159,9170.00
Monetary
funds
1,159,917/CNPC & CCCC PetroleumSales Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
965,323965,3230.00
Monetary
funds
965,323/CCCC Third HarborConsultants Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
939,041939,0410.00
Monetary
funds
939,041/ZPMC Mediterranean LimanMakinalari Ticaret AnonimSirketi
Joint venture
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
885,446885,4460.00
Monetary
funds
885,446/CCCC Xingyu TechnologyCo., Ltd
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
861,426861,4260.00
Monetary
funds
861,426/Beijing BLDJ LandscapeArchitecture Institute Co.,LTD.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
366,037366,0370.00
Monetary
funds
366,037/CCCC Second HarborConsultants Co., Ltd.
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
230,063230,0630.00
Monetary
funds
230,063/CCCC (Xiamen) InformationCo., Ltd
Subsidiary of theholding parent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
45,21745,2170.00
Monetary
funds
45,217/
4747
2022
Related partyRelationship
Type ofrelatedtransaction
Content of relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of related
transaction
Proportion
in theamountof similartransactions
(%)
Settlement
mode ofassociatedtransaction
Market price
Reasonfor greatdi?erences
betweenthe bargainprice andmarketpriceCCCC Shanghai EquipmentEngineering Co., Ltd.
Subsidiary of theholding parent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
370,483,873370,483,8731.42
Monetaryfunds
370,483,873/ZPMC Changzhou CoatingsCo., Ltd.
Associated company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
131,829,860131,829,8600.50
Monetaryfunds
131,829,860/CNPC & CCCC PetroleumSales Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
53,399,04753,399,0470.20
Monetary
funds
53,399,047/CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
37,699,11337,699,1130.14
Monetary
funds
37,699,113/CCCC Third HarborConsultants Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
31,363,81631,363,8160.12
Monetaryfunds
31,363,816/ZPMC Southeast Asia Pte.Ltd
Associated company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
28,685,37228,685,3720.11
Monetary
funds
28,685,372/Shanghai Jiangtian IndustrialCo., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
13,419,61213,419,6120.05
Monetary
funds
13,419,612/CCCC Water TransportationPlanning and Design InstituteCo., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
8,336,2838,336,2830.03
Monetary
funds
8,336,283/Chuwa Risheng (Beijing)International Trade Co., Ltd
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
7,280,4587,280,4580.03
Monetary
funds
7,280,458/Jiangmen HangtongShipbuilding Co., Ltd.of CCCC Fourth HarborEngineering Co. Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
6,318,5846,318,5840.02
Monetary
funds
6,318,584/Shanghai Zhensha LongfuMachinery Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
5,974,5605,974,5600.02
Monetary
funds
5,974,560/Installation Engineering Co.,Ltd. of CCCC First HarborEngineering Co. Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
4,867,2574,867,2570.02
Monetary
funds
4,867,257/China CommunicationsInformation Technology GroupCo., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
4,001,1524,001,1520.02
Monetary
funds
4,001,152/CCCC Tianjin Industry andTrade Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
3,899,5303,899,5300.01
Monetary
funds
3,899,530/CCCC Fourth HarborConsultants Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
3,623,8943,623,8940.01
Monetary
funds
3,623,894/ZPMC Mediterranean LimanMakinalari Ticaret AnonimSirketi
Joint venture
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
2,347,4342,347,4340.01
Monetary
funds
2,347,434/CCCC Highway BridgesNational EngineeringResearch Centre Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
1,189,3811,189,3810.00
Monetary
funds
1,189,381/CCCC (Xiamen) InformationCo., Ltd
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
1,022,0571,022,0570.00
Monetary
funds
1,022,057/Xing An Ji Engineering Co.,Ltd. of CCCC Third HarborEngineering Co., Ltd.
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
775,633775,6330.00
Monetary
funds
775,633/CCCC Xingyu TechnologyCo., Ltd
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
266,896266,8960.00
Monetary
funds
266,896/Shanghai Waterway LogisticsCo., Ltd
Subsidiary of theholding parent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
33,03333,0330.00
Monetary
funds
33,033/Total/6,587,029,856///Details of large amount of sales returnsNoneExplanation for related transactions
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 for2022-2024". In 2022, the amount of the annual related transactions in the normal business between theCompany and the subsidiaries and China Communications Construction Co., Ltd. and the subsidiarieswas about RMB 6.587 billion, which did not exceed the upper limit of the routine related transactionsapproved by the 2021 Annual General Meeting of Shareholders.
3.Events not disclosed in provisional announcements
Related transactions arising from acquisition or o?ering of assets or stock equity
1.Events disclosed in provisional announcement, without progress or changes in follow-up implementation
□Applicable √Not applicable
4848
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
Material related transactions with joint external investments
1.Events disclosed in provisional announcement, without progress or changes in follow-up implementation
√Applicable □Not applicable
Summary of eventsQuery indexRelated transactions concerning the establishment of a constructionphotovoltaic company in a joint venture with CCCC Industrial InvestmentHolding Co., Ltd.
See Extraordinary Announcement No. 2022-014 for details
2.Events disclosed in the provisional announcement, with progress or changes in follow-up implementation
□Applicable √Not applicable
3.Events not disclosed in provisional announcements
□Applicable √Not applicable
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
Financial business between the Company and related nance companies, or between nance companies underthe Company’s control and related parties
√Applicable □Not applicable
1. Deposit business
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Related partyRelationship
Maximum daily
deposit limit
Deposit interestrate range
December 31,2021
Amount incurred in the current period
December 31,2022Total deposit amount inthe current period
Total withdrawalamount in thecurrent periodCCCC FinanceCompany Ltd.
Subsidiary of the holdingparent company
1,600,000,0000.46%-1.76%1,600,000,0007,205,270,1298,804,834,561435,568Total///1,600,000,0007,205,270,1298,804,834,561435,568
4949
2022
2. Loan business
√Applicable □Not applicable
Unit: Yuan Currency: CNYRelated partyRelationshipLoan limit
Loan interestrate range
December 31,2021
Amount incurred in the current period
December 31,
2022Total loan amount in
the current period
Total repayment
amount in thecurrent periodCCCC FinanceCompany Ltd.
Subsidiary of theholding parent company
2,000,000,0002%100,000,000544,000,000-644,000,000Total///100,000,000544,000,000-644,000,000
3. Credit business or other nancial business
√Applicable □Not applicable
Unit: Yuan Currency: CNYRelated partyRelationship
Business
type
Total amountActual amount incurredCCCC FinanceCompany Ltd.
Subsidiary of the holding parentcompany
Credit2,000,000,000427,450,000CCCC Xiongan FinancialLeasing Co., Ltd.
Subsidiary of the holding parentcompany
Factoring300,000,000120,000,000
4. Other description
□Applicable √Not applicable
Others
□Applicable √Not applicable
XIII.Material contracts and their performanceTrusteeship, 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
Name of lessorName of lessee
Leasedassets
Amountinvolved inleased assets
Startingdate ofleasing
Terminationdate ofleasing
Income fromleasing
Basis fordeterminingincome fromleasing
Impacts ofincome fromleasing on theCompany
Relatedtransactionor not
RelationshipShanghaiZhenhua HeavyIndustries Co.,Ltd.
Shanghai ZhenlongAsset ManagementCo., Ltd, and othercompanies
Lease ofhouses
22,965.71
August 10,
2012
July 9, 20253,215.09Agreed3,215.09NoShanghaiZhenhua HeavyIndustries Co.,Ltd.
Shanghai ChangyinReal EstateDevelopment Co.,Ltd.
Lease ofhouses
22,965.71
March 1,
2021
February 29,
2024
1,474.48Agreed1,474.48NoShanghaiZhenhua HeavyIndustries Co.,Ltd.
Shanghai ChangyiIndustrial Co., Ltd
Lease ofhouses
1,405.40
August 15,
2021
August 14,
2031
859.13Agreed859.13No
Leasing explanationNone
5050
Guarantee
√Applicable □Not applicable
Unit: Yuan Currency: CNY
External guarantee of the Company (excluding guarantee to the subsidiaries)Guarantor
Relationbetween theguarantorand the listed
company
Guaranteed
party
Guaranteed
amount
Date ofguarantee(signing dateof agreement)
Startingdate ofguarantee
Duedate ofguarantee
Type ofguarantee
Collateral(if any)Fulllmentof theguaranteeor not
Overdueor notAmount ofoverdueguarantee
Counterguarantee
or notGuaranteeby therelatedparty ornot
RelationshipTotal amount of guarantee incurred during the reporting period (excluding guaranteeto the subsidiaries)Total balance of guarantee at the end of the reporting period (A) (excluding guaranteeto the subsidiaries)
Guarantee of the Company and its subsidiaries to the subsidiariesTotal amount of guarantee to the subsidiaries incurred during the reporting period-774,009,980Total 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)0Proportion of total amount of guarantee in the net assets of the Company (%)0Including:
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 withthe 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 guaranteeDescription of guarantee
The “Proposal for Providing Financing Guarantee to the Subsidiary Shanghai Zhenhua Port Machinery (HongKong) Co., Ltd.” was approved upon deliberation by the Company at the 1
stprovisional general meeting for 2008,which agreed to provide the nancial support to the subsidiary in Hong Kong and provided the guarantee with theupper limit of USD 500 million for the loan it applied for through the bank. As of June 30, 2022, the loan guaranteedby the Company for its subsidiary in Hong Kong was fully repaid.
Consigned cash assets management
1. Consigned nancing
(1) General information of consigned nancing
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Information on individual consigned nancing
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Provision for impairment of consigned nancing
□Applicable √Not applicable
2.Consigned loans
(1) General information of consigned loans
□Applicable √Not 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
5151
2022Other material contracts
√Applicable □Not applicable
The Company and Yantian East International Container Terminals Co., Ltd. reached a consensus on the procurementof double-trolley quayside container cranes and related matters for Phase I project of the Container Terminal Project inEast Operation Section of Yantian Port Area, Shenzhen Port, and signed a contract agreement for a total project amount ofRMB1,293 million. See Extraordinary Announcement No. 2022-032 for details.XIV. Other signicant events for investors’ judgment of value and investment decision-making
□Applicable √Not applicable
5252
Section VIIChanges in Shares and Shareholders' SituationI. Changes in share capitalTable of changes in shares
1. Table of changes in shares
The total number of shares of the Company and the structure of its share capital remained unchanged during thereporting period.
2.Notes to changes in shares
□Applicable √Not applicable
3.E?ect of changes in shares on nancial indicators such as earnings per share and net asset per share for the
latest year and period (if any)
□Applicable √Not applicable
4.Other contents that the Company deems necessary to be disclosed or required to be disclosed by the
securities regulatory authority
□Applicable √Not applicable
Changes in shares with restrictive conditions for sales
□Applicable √Not applicable
II. Issuance and listing of securities
Securities issuance by the reporting period
□Applicable √Not applicable
Particulars about the issuance of securities during the reporting period (for bonds of di?erent interest rates within theduration, please state them respectively)
□Applicable √Not applicable
Changes in total shares and the shareholder structure of the Company, as well as in asset and liabilitystructures
□Applicable √Not applicable
Existing internal employee ownership
□Applicable √Not applicable
III. Shareholders and actual controller
Total number of shareholdersTotal of ordinary shareholders by the end of the reporting period205,532Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report221,862
5353
2022Table of the shares held by top 10 shareholders, top 10 holders of marketable shares (or shareholders withouttrading limited conditions) by the end of reporting period
Unit: shareShares held by top 10 shareholdersName of shareholder(in full)
Changes inthe reporting
period
Number ofshares held atthe end of the
period
Ratio (%)
Number ofshares withtrading limitedconditions held
Shares in pledge,marked or frozen
Nature ofshareholderSharestatus
Numberof sharesCCCG (HK) Holding Limited0916,755,84017.4010NA0
Overseaslegal personChina Communications ConstructionCompany Ltd.
0855,542,04416.2390NA0
State-ownedlegal personChina Communications Construction GroupCo., Ltd.
0663,223,37512.5890NA0
State-ownedlegal personCITIC Bank Co., Ltd. - BOCOM SchroderNew Life Flexible Allocation Hybrid SecuritiesInvestment Fund
34,542,58534,542,5850.66UnknownUnknownDacheng Fund- Agricultural Bank of China- Dacheng China Securities Financial AssetManagement Plan
019,855,9200.38UnknownUnknownGF Fund- Agricultural Bank of China -GF China Securities Financial AssetsManagement Plan
019,855,9200.38UnknownUnknownChina Southern Asset Management-Agricultural Bank of China - China SouthernAsset Management China Securities FinancialAsset Management Plan
019,855,9200.38UnknownUnknownE FUND Management- Agricultural Bankof China - E FUND Management ChinaSecurities Financial Assets Management Plan
-28,10019,827,8200.38UnknownUnknownLombarda China Fund- Agricultural Bank ofChina - Lombarda China Fund China SecuritiesFinancial Assets Management Plan
-29,00019,826,9200.38UnknownUnknownYinhua Fund- Agricultural Bank of China- Yinhua China Securities Financial AssetManagement Plan
-221,18819,634,7320.37UnknownUnknownShareholdings of top 10 shareholders without trading limited conditionsName of shareholder
Number of non-restrictive circulationshares held
Type and number of shares
TypeQuantityCCCG (HK) Holding Limited916,755,840
Foreignshares listeddomesticallyChina Communications Construction Company Ltd.855,542,044
RMB ordinary
sharesChina Communications Construction Group Co., Ltd.663,223,375
RMB ordinary
sharesCITIC Bank Co., Ltd. - BOCOM Schroder New Life Flexible AllocationHybrid Securities Investment Fund
34,542,585
RMB ordinary
sharesDacheng Fund- Agricultural Bank of China - Dacheng China SecuritiesFinancial Asset Management Plan
19,855,920
RMB ordinary
sharesGF Fund- Agricultural Bank of China - GF China Securities FinancialAssets Management Plan
19,855,920
RMB ordinary
sharesChina Southern Asset Management- Agricultural Bank of China -China Southern Asset Management China Securities Financial AssetManagement Plan
19,855,920
RMB ordinary
shares
5454
Shareholdings of top 10 shareholders without trading limited conditionsName of shareholder
Number of non-restrictive circulationshares held
Type and number of sharesTypeQuantityE FUND Management- Agricultural Bank of China - E FUND ManagementChina Securities Financial Assets Management Plan
19,827,820
RMB ordinarysharesLombarda China Fund- Agricultural Bank of China - Lombarda ChinaFund China Securities Financial Assets Management Plan
19,826,920
RMB ordinarysharesYinhua Fund- Agricultural Bank of China - Yinhua China SecuritiesFinancial Asset Management Plan
19,634,732
RMB ordinarysharesNotes to the related relation or consistent actions of the above-mentionedshareholders
Among the above top 10 shareholders, CCCG (HK) HoldingLimited, China Communications Construction Group Co., Ltd. andChina Communications Construction Company Ltd. are relatedcompanies. It was unknown to the Company whether there wasrelated relation between other shareholders and whether theybelonged to the concerted actor specified in the “ManagementMethod on Information Disclosure for Shareholding Change of theShareholders of Listed Companies”.Explanation on preferred stock holders with recovered voting rights andnumber of stocks held by themShareholdings of the top ten restricted shareholders and the restrictions
□Applicable √Not applicable
Indicate whether any strategic investor or general corporate has become a top-10 shareholder due to placementof new shares
□Applicable √Not applicable
IV. Controlling shareholder and actual controller
Controlling shareholder
1. Legal person
√Applicable □Not applicable
NameChina Communications Construction Group Co., Ltd.Company principal or legal representativeWang TongzhouDate of EstablishmentDecember 8, 2005
Main business
Construction of overseas projects and international bidding projects at home; generalcontracting for construction of various special ships, leasing and maintenance of specialship and construction machines; o?shore towage and professional services related to theocean engineering; technical consultant services regarding the ship and the supporting portequipment; engaging in the general contracting of construction projects for ports, channels,highways and bridges both home and abroad (including technical and economic consultationof engineering, feasibility study, survey, design, construction, supervision, procurementand supply for related complete set of equipment or materials, and equipment installation);undertaking the general contracting of the construction of industrial and civil works, railway,metallurgy, petrochemical, tunnel, power, mine, water conservancy, and municipal works;import and export business; real estate development and property management; investmentand management of transportation, hotel and tourism industries.Interests held in other domesticallyand overseas listed companies in thereporting period
CCCG holds 59.63% of the stock equity of CCCC (601800.SH) and it is the controllingshareholder. 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 RealEstate Co., Ltd. (000726.SZ) and it is the controlling shareholder. CCCG and its controllingsubsidiaries totally hold 28.00% of the stock equity of Greentown Holding Co., Ltd. (03900.HK) and are the controlling shareholders. China Urban and Rural Holding Group Co., Ltd., awholly-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 arethe controlling shareholders.Notes to other circumstances
5555
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
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
6. Indicate whether the actual controller controls the Company via trust or other ways of assets management
□Applicable √Not applicable
CCCCShareholding ratio100%Shareholding ratio 17.4012%Shareholding ratio 16.2393%
Shareholding ratio 59.63%
Shanghai Zhenhua Heavy Industries, Co., Ltd.
CCCGCCCG HKShareholding ratio 12.5888%
Shanghai Zhenhua Heavy Industries, Co., Ltd.
CCCGState-owned Assets Supervision andAdministration Commission of the State Council
Shareholding ratio 100%
Shareholding ratio 100%
Shareholding ratio 17.4012%Shareholding ratio 16.2393%
Shareholding ratio 59.63%
CCCC CCCG HKShareholding ratio 12.5888%
5656
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 thelargest 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: CNYName ofcorporateshareholder
Company principal or
legal representative
Date ofestablishment
Organization code
Registered
capital
Main business ormanagement activitiesChinaCommunicationsConstructionCompany Ltd.
Wang TongzhouOct. 8, 200691110000710934369E1,616,571.1425
General contracting ofconstruction projectsfor ports, waterways,highways, bridges, etc.CCCG (HK)Holding Limited
Peng GuangshengSept. 5, 2017/HKD 1,000
Investment management,project investment,project nancingDescription
CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of ChinaCommunications Construction Group Co., Ltd.VII. Particulars about restrictions on shareholding reduction
□Applicable √Not applicable
VIII. Specic implementation of share repurchases during the reporting period
□Applicable √Not applicable
Section VIIIPreference Shares
□Applicable √Not applicable
5757
2022Section IXBondsI. Enterprise bonds, corporate bonds and debt nancing instruments of non-nancial enterprises
√Applicable □Not applicable
Enterprise bonds
□Applicable √Not applicable
Corporate bonds
□Applicable √Not applicable
1.Basic information of corporate bonds
Unit: Yuan Currency: CNYName of bondAbbreviationCode
IssuedateValuedateMaturitydateOutstanding
balance
Interestrate (%)
Paymentmethod
Tradingvenue
Investoreligibilityarrangements
(if any)
Tradingmechanism
Risk oftermination
of listingand tradingShanghai ZhenhuaHeavy IndustriesCo., Ltd. 2022private placement ofcorporate bonds (BlueBond) (series 1)
G Zhenhua D1
182728.SHSept.16,2022Sept.20,2022
Dec.19,2022
0.001.95
Principaland interestrepaymenton maturity
ShanghaiStockExchange
Privateplacement
N/A
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 bondStatement of interest payment statusShanghai Zhenhua Heavy Industries Co., Ltd. 2022 privateplacement of corporate bonds (Blue Bond) (series 1)
Normal payment at maturity.
2.Triggering and execution of issuer or investor option clauses and investor protection clauses
□Applicable √Not applicable
3. Intermediary agencies providing services for bond issue and duration business
Agency nameO?ce address
Signedby theAccountants
Person to contactContact numberHuatai United SecuritiesCo., Ltd.
20F, Tower E, Poly Plaza, 18 DongfangRoad, Pudong, Shanghai
Wang Zhe18017726598China Lianhe CreditRating Co. Ltd.
17/F, PICC Building, No.2Jianguomenwai Street, ChaoyangDistrict, Beijing
-
Yang Heng, Wang
Xinglong
010-85679696Ernst & Young Hua MingLLP
50/F, Shanghai World Financial Center,No. 100 Century Ave., Pudong NewArea, Shanghai
-Gao Chong021-22288888Shanghai Landing LawO?ces
16/F, East Tower, Ra?es City theBund, No.1089 DongDaMing Road,Hongkou District, Shanghai
-
Liu Zhaofu, Kong
Lingsen
021-66529952
5858
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 benets 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
Interbank bond market debt nancing instrument of non-nancial enterprises
√Applicable □Not applicable
1.Basic information of debt nancing instruments of non-nancial enterprises
Unit: Yuan Currency: CNYName of bondAbbreviationCode
Issuedate
Valuedate
Maturity
dateOutstandingbalance
Interestrate (%)
Paymentmethod
Tradingvenue
Investoreligibilityarrangements(if any)
Tradingmechanism
Risk oftermination
of listingand tradingShanghai ZhenhuaHeavy IndustriesCo., Ltd. 2022medium-term notesseries I (sci-techinnovation note)
22 ZPMCMTN001(sci-techinnovationnote)
102281893
Aug.22,2022Aug.24,2022Dec. 31,2099500,000,0003.22
Aug.24every year
Interbankmarket
Centralizedbook-entry andcentralizedplacement
N/AShanghai ZhenhuaHeavy IndustriesCo., Ltd. 2020medium-term notesseries 2
20 ZPMCMTN002
102002348
Dec.24,2020
Dec.28,2020
Dec. 28,
2022
05.1
Interestpaid onDecember28 every
year
Interbank
market
Centralizedbook-entry and
centralized
placement
N/A
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 bondStatement of interest payment statusShanghai Zhenhua Heavy Industries Co., Ltd. 2020 medium-term notes series 2Normal payment at maturity.
5959
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
Agency nameO?ce address
Signed by theAccountants
Person to contactContact numberBank of Communications Co., Ltd.
No.188 Yincheng MiddleRoad, Shanghai
-Xiong Han021-38579212Industrial Bank Co., Ltd.
Industrial Bank Tower,398 Middle Jiangbin Blvd.,Taijiang District, Fuzhou,Fujian
-
Lin Chen, ChengQiuyun
010-89926551,021-62677777China Lianhe Credit Rating Co. Ltd.
17/F, PICC Building, No.2Jianguomenwai Street,Chaoyang District, Beijing
-
Yang Heng, Wang
Xinglong
010-85679696Ernst & Young Hua Ming LLP
50/F, Shanghai WorldFinancial Center, No. 100Century Ave., Pudong NewArea, Shanghai
-Gao Chong021-22288888Shanghai Duan & Duan Law Firm
47/F, Maxdo Center, No. 8Xingyi Road, Shanghai
-Wang Xiaobo021-32230722
Changes in the above intermediary agencies
□Applicable √Not applicable
4.Use of raised funds at the end of the reporting period
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Name of bond
Total amount of
raised funds
Amount used
Unusedamount
Operationof special
accountfor fundraising (ifany)
Recticationof non-compliantuse of raisedfunds (if any)
Consistentwith thepurpose, useplan, and otheragreementspromised inthe prospectus
or notShanghai Zhenhua HeavyIndustries Co., Ltd. 2022medium-term notes seriesI (sci-tech innovation note)
500,000,000.00500,000,000.000Yes
Progress and operating benets 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
6060
7.Other information on debt nancing instruments of non-nancial enterprises
□Applicable √Not applicable
The loss in the scope of consolidated nancial statements during the reporting period exceeding 10% of the netassets as at the end of the prior year
□Applicable √Not applicable
Overdue interest-bearing debts other than bonds at the end of the reporting period
□Applicable √Not applicable
Violations of laws and regulations, the articles of association, the management system for informationdisclosure matters, as well as the impact of conditions agreed or promised in the bond prospectus on the rightsand interests of bond investors during the reporting period
□Applicable √Not applicable
Main accounting data and nancial indexes of the Company in recent 2 years as of the end of the reportingperiod
√Applicable □Not applicable
Unit: Yuan Currency: CNYMain indexes20222021
Year-on-yearchange (%)
Reason of changeNet prot attributable to shareholders ofthe listed company after deducting the non-recurring prots and losses
414,835,324-440,186,675N/ACurrent ratio1.071.24-13.71Quick ratio0.330.45-26.67Asset-liability ratio (%)76.8377.47-0.64Interest-bearing debt ratio (%)5257-5Interest coverage ratio1.561.457.59Cash interest coverage ratio2.921.8161.33EBITDA interest coverage ratio2.742.567.03Loan repayment ratio (%)1001000Interest coverage ratio (%)1001000II. Information about convertible corporate bonds
□Applicable √Not applicable
6161
2022Section XFinancial ReportI. Auditors’ Report
√Applicable □Not applicable
Auditors' Report
All shareholders of Shanghai Zhenhua Heavy Industries Co., Ltd.:
OpinionWe have audited the nancial statements of Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to asthe “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 inshareholders’ equity and the Company’s statement of changes in owners’ equity and the consolidated statement of cashows and the Company's statement of cash ows for the year then ended as well as the notes to the nancial statements.In our opinion, the nancial statements of the Company attached are prepared, in all material respects, in accordancewith the Accounting Standards for Business Enterprises, and fairly present the consolidated financial position and theCompany's financial position as at December 31, 2022 and the consolidated operating results and cash flows and theCompany’s operating results and cash ows for the year then ended.
Basis for Our OpinionsWe conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Ourresponsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the FinancialStatements section of this auditors’ report. According to the Code of Ethics for Certied Public Accountants of China,we areindependent of the Company, and we have fullled other responsibilities in the aspect of code of ethics. We believe that theaudit evidence we have obtained is su?cient and appropriate to provide a basis for our opinion.Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most signicance in our audit of thefinancial statements for the current period. The response to these matters is based on the overall audit of the financialstatements and the formation of audit opinions. We do not express our opinions on these matters separately. The followingdescription of how our audit addressed the key audit matter is also against this background.We have fullled the responsibilities stated in “Responsibilities of Certied Public Accountant for Auditing of FinancialStatement” in this report, including the responsibilities related to these key auditing matters. Correspondingly, our auditingwork includes the implementation of the auditing procedure designed for dealing with the great misstatement risks of thefinancial statement to be evaluated. The results from the implementation of the auditing procedure by us, including theprocedure to be implemented for the following key auditing matters, o?ers a foundation for releasing the auditing opinions ofthe nancial 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 theport container crane; in addition, it is also engaged in the manufacture of bulk handlingmachine, o?shore heavy-duty machine and large-sized steel structure. Its inventoriesmainly include engineering raw materials, outsourcing parts and components, productsin the process and inventory goods. Since the production cycle of the products isrelatively long, the net realizable value of the related inventory may uctuate withthe change in the market demand, resulting in the inventory depreciation risks. Themanagement sets aside the inventory depreciation reserves according to the balance ofthe inventory cost and the net realizable value. The net realizable value is determinedas per the estimated selling price of the inventory minus the cost, the estimated sellingexpenses and the related taxes that may occur in the completion on the assumptionthat the management layer adopts a certain estimate and hypothesis in determining thenet realizable value. In case of di?erence between the actual gure and the originallyestimated gure, the related balance will a?ect the book value of the inventory and thedepreciation loss in the estimated uctuation.As of December 31, 2022, in the consolidated nancial statements, the balance ofinventories was RMB 22.22 billion and the reserve for inventory depreciation was RMB
0.7 billion; in the nancial statements of the Company, the balance of inventories was
RMB 19.27 billion and the reserve for inventory depreciation was RMB 0.74 billion.The accounting policy and other disclosures regarding the inventory are stated in NoteV (15), Note V (43) and Note VII (9) of the nancial statement.
Our procedure mainly included knowing and testing the validityof the control related to the provision of inventory depreciationreserves and the method of calculating the net realizablevalue of the Group. We also implemented the related auditingprocedures over the inventory such as supervision of inventoryto verify whether the management had marked the inventorywith slow turnover and defectives and taken into full accountin provision of inventory depreciation reserves. In addition,we obtained the computation sheet of provision of inventorydepreciation reserves from the management, rechecked thecalculation method and result. As to the key elements takeninto consideration by the management in calculating the netrealizable value, including the estimated selling price and thecost that may occur till completion, we evaluated the hypothesisand the estimates through analyzing the related historicaldata and comparing the after-date data of Shanghai ZhenhuaHeavy Industries Co., Ltd. We also rechecked the disclosure ofinventory depreciation reserves in nancial statements.
Ernst & Young (2023) SZ No.61249778_B01Shanghai Zhenhua Heavy Industries Co., Ltd.
6262
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 mainlyfrom the business contract on port machine and ocean engineering manufacturing.Since it involves large contracted value, long construction period, relatively complicatedtechnical parameters, the implementation of the contract may be a?ected by theperiodicity of the economic environment. The accounts receivable has certain risk in therecovery in case of any dispute in contract or the industry is in recession. The provisionsfor bad debts of accounts receivable are recognized on the basis of estimated creditlosses, involving major judgment and estimates. The management of analyzed thenancial position of counter parties, guarantee acquired for accounts receivable,historical repayment records of accounts receivable, as well as the credit rating andfuture economic situations of counter parties for evaluating the credit risk of accountsreceivable.As of December 31, 2022, in the consolidated nancial statements, the balance ofaccounts receivable was RMB 9.51 billion and the provision for bad debts of accountsreceivable was RMB 2.32 billion; in the nancial statements of the Company, thebalance of accounts receivable was RMB 20.12 billion and the provision for bad debts ofaccounts receivable was RMB 2.11 billion.The accounting policy and other disclosures regarding the provision for bad debts ofaccounts receivable are stated in Note V (15), Note V (43), Note VII (5) and Note XVII (1)of the nancial statements.
Our procedure mainly included the evaluation of the accountingestimate relating to the depreciation reserves, such as thenancial status and credit rating of the counterpart; checked theaccount age of accounts receivable and historical repaymentrecord and evaluated whether the nancial problems of thecounter party had e?ects on the recovery of the accountsreceivable; for the accounts receivable evaluated based onthe portfolio, we rechecked the management's setting of creditrisk features portfolio, checked the key information such asaccount age and credit record of each portfolio by sampling,and rechecked the basis of management's evaluation of creditrisk and expected credit loss amount based on the credit riskfeatures portfolio, including testing historical default data andchecking the actual credit loss in the current year; recheckedthe disclosure of bad debt provision for accounts receivable innancial statements.
3. Revenue recognition
Most of the revenue of Shanghai Zhenhua Heavy Industries Co., Ltd. comes from theone of the construction contracts on the large-sized port equipment, heavy equipment,steel structure and construction projects customized by the customer.Since January 1, 2020, the new revenue standard has been applied, and themanagement has read and analyzed the contracts of various revenue types accordingto the requirements of ve step method. The performance obligations included in themanufacturing contract on most large-sized port equipment, heavy equipment and somesteel structure products did not meet the conditions of performance obligations withina certain period of time, therefore, based on comprehensive consideration of variousfactors, the revenue was recognized at the time of control transfer of relevant products.In 2022, in the consolidated nancial statements, the operating revenue was RMB 30.19billion; in the nancial statements of the Company, the operating revenue was RMB
26.17 billion.
The accounting policy and other disclosures regarding the operating revenue are statedin Note V (24), Note V (33), Note VII (47) and Note XVII (4) of the nancial statements.
Our procedure mainly included evaluating and testing themanagement's internal control related to revenue recognition.Selected the sales contract with signicant amount, checkedthe important contract terms related to revenue recognitionaccording to the ve step requirements of the new revenuestandard, and evaluated the management’s accounting judgmentand estimate on performance obligations, revenue recognitionamount (including variable consideration) and the recognitionat a certain time point or within a period of time. Throughselecting the samples, we veried whether the contract revenuerecognized in the year conformed to the revenue recognitionconditions; implemented the cuto? check procedure to validatethe revenue was conrmed in the proper accounting period. Forthe revenue recognized in a certain period of time, we evaluatedthe judgment and estimate of the total contract cost and totalprocessing amount made by the management, and madesampling to calculate and check the income determined bythe occurred contract cost and the expected total contract costagain; implemented the analysis procedure against the changesin revenue and gross prot of various businesses; rechecked thedisclosure of revenue recognition in nancial statements.Other InformationThe management of Shanghai Zhenhua Heavy Industries Co., Ltd. shall be responsible for other information. The otherinformation comprises information of the annual report, but excludes the nancial statements and our auditors’ report.Our opinion on the nancial statements does not cover the other information, and we do not and will not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other information identifiedabove and, in doing so, consider whether the other information is materially inconsistent with the nancial statements or ourknowledge 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 thisregard, we have nothing to report.Responsibilities of the Management and Those Charged with Governance for the Financial StatementsThe Management is responsible for preparing the financial statements in accordance with the requirements ofAccounting Standards for Business Enterprises to achieve a fair presentation, and for designing, implementing andmaintaining internal control that is necessary to ensure that the nancial 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-concernability, disclosing the matters related to going concern (if applicable) and using the going-concern assumption, unless theManagement either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's nancial reporting process.
6363
2022Auditors’ Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standardswill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to inuence the economic decisions of userstaken on the basis of these nancial statements.During the process of an audit conducted in accordance with audit standards, we exercise professional judgment andmaintain professional scepticism throughout the audit. Meanwhile, we also implement the following work:
(1) Identify and assess the risks of material misstatement of the nancial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is su?cient and appropriateto provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal 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 signicantdoubt on the ability of Shanghai Zhenhua Heavy Industries Co., Ltd. to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to, in our auditors' report, draw attention of the users of statements to the relateddisclosures in the nancial statements; if such disclosures are inadequate, we should modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions maycause Shanghai Zhenhua Heavy Industries Co., Ltd. to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content (including the disclosures) of the nancial statements, and
evaluate whether the nancial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6) Obtain su?cient appropriate audit evidence regarding the nancial information of the entities or business activities
within the Company to express an opinion on the nancial statements. We are responsible for the direction, supervision andperformance of the group audit, and bear full responsibility for our audit opinion.
We communicate with those charged with governance regarding the planned scope and timing of the audit, signicantaudit ndings and other matters, including any signicant deciencies 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 ethicalrequirements regarding independence, and to communicate with them in regard to all relationships and other matters thatmay reasonably be thought to a?ect our independence, and related safeguards (if applicable).
From the matters communicated with those charged with governance, we determine those matters that were of mostsignicance in the audit of the nancial statements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interest benets of such communication.
Ernst & Young Hua Ming LLP
Beijing, China
Certied Public Accountant of China:
(Engagement Partner)Certied Public Accountant of China:
March 30, 2023
6464
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Balance Sheet
Unity: Yuan Currency: CNYItemNoteAs at December 31, 2022As at December 31, 2021Current assets:
Monetary fundsVII (1)2,397,047,7134,571,837,584Settlement provisionsLending fundsHeld-for-trading nancial assetsVII (2)877,483,3421,153,533,922Derivative nancial assetsNotes receivableVII (4)56,114,6573,979,800Accounts receivableVII (5)7,193,649,8556,448,850,756Receivables nancingVII (6)439,912,428245,408,260Advances to suppliersVII (7)951,212,4221,159,427,850Premiums receivableReinsurance accounts receivableReserves for reinsurance contract receivableOther receivablesVII (8)995,545,297940,522,896Including: Interest receivable
Dividend receivable8,000,000Financial assets purchased under agreements to resellInventoriesVII (9)21,513,379,34822,073,774,730Contract assetsVII (10)3,243,073,1361,971,455,850Assets held for saleVII (11)15,167,288Non-current assets due within one yearVII (12)900,213,4111,437,034,591Other current assetsVII (13)279,067,341359,805,348Total current assets38,846,698,95040,380,798,875Non-current assets:
Disbursement of loans and advancesDebt investmentOther debt investmentsLong-term receivablesVII (16)2,402,265,5652,674,407,383Long-term equity investmentsVII (17)2,002,879,9251,841,721,259Other equity instrument investmentVII (18)73,475,61966,280,045Other non-current nancial assetsInvestment propertiesVII (20)437,494,135461,077,417Fixed assetsVII (21)20,663,113,03020,018,544,737Construction in progressVII (22)4,838,814,0524,691,782,000Productive biological assetsOil and gas assetsRight-of-use assetsVII (25)11,931,4517,652,250Intangible assetsVII (26)3,553,837,7713,400,427,256Development expendituresGoodwillVII (28)268,245,693258,638,429Long-term deferred expensesVII (29)409,870103,664
II. Financial Statements
As at December 31, 2022
6565
2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Balance Sheet(Continued)
Unity: Yuan Currency: CNYAs at December 31, 2022ItemNoteAs at December 31, 2022As at December 31, 2021Deferred income tax assetsVII (30)867,941,451773,705,674Other non-current assetsVII (31)4,246,061,2113,756,942,210Total non-current assets39,366,469,77337,951,282,324Total assets78,213,168,72378,332,081,199Current liabilities:
Short-term borrowingsVII (32)1,793,682,9525,977,692,367Borrowings from the Central BankBorrowing fundsHeld-for-trading nancial liabilitiesDerivative nancial liabilitiesNotes payableVII (35)5,401,258,8974,160,666,800Accounts payableVII (36)7,255,123,3346,966,472,639Advances from customersContract liabilitiesVII (38)13,348,150,19712,386,142,828Financial assets sold for repurchaseDeposits from customers and interbankActing trading securitiesActing underwriting securitiesPayroll payableVII (39)38,074,15435,641,840Tax payableVII (40)238,103,875167,827,388Other payablesVII (41)1,314,688,315409,527,645Including: Interest payable
Dividends payable6,5936,593Fees and commissions payableDividend payable for reinsuranceLiabilities held for saleNon-current liabilities due within a yearVII (43)6,961,445,2182,523,964,018Other current liabilitiesVII (44)Total current liabilities36,350,526,94232,627,935,525Non-current liabilities:
Reserve fund for insurance contractsLong-term borrowingsVII (45)21,019,572,64624,943,760,955Bonds payableIncluding: preferred stock
Perpetual bondLease liabilitiesVII (47)7,676,707736,624Long-term payablesVII (48)1,931,340,7342,163,591,149Long-term payroll payableEstimated liabilitiesVII (50)168,241,316188,005,742Deferred incomeVII (51)332,419,380388,823,964Deferred income tax liabilitiesVII (30)99,240,97276,876,339
6666
ItemNoteAs at December 31, 2022As at December 31, 2021Other non-current liabilitiesVII (52)181,805,207292,297,881Total non-current liabilities23,740,296,96228,054,092,654Total liabilities60,090,823,90460,682,028,179Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)VII (53)5,268,353,5015,268,353,501Other equity instrumentsVII (54)500,000,000500,000,000Including: preferred stock
Perpetual bond500,000,000500,000,000Capital reservesVII (55)4,842,515,7154,842,515,715Less: treasury stockOther comprehensive incomeVII (57)24,865,987-69,355,058Special reservesVII (58)2,945,5601,934,676Surplus reservesVII (59)1,703,918,6761,679,258,496General risk preparationUndistributed protsVII (60)2,825,870,6782,767,511,301Total owners' equities attributable to the owners of parentcompany
15,168,470,11714,990,218,631Minority equity2,953,874,7022,659,834,389Total owners’ equity (or shareholders' equity)18,122,344,81917,650,053,020Total liabilities and owners’ equity (or shareholders' equity)78,213,168,72378,332,081,199
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Balance Sheet(Continued)
Unity: Yuan Currency: CNYAs at December 31, 2022
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
6767
2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Balance Sheet of the Parent Company
Unity: Yuan Currency: CNYItemNote As at December 31, 2022As at December 31, 2021Current assets:
Monetary funds722,079,8403,701,103,539Held-for-trading nancial assets239,784,587493,120,301Derivative nancial assetsNotes receivable56,114,6573,979,800Accounts receivableXVII (1)18,014,241,05015,045,002,044Receivables nancing297,356,630237,823,940Advances to suppliers6,860,717,2864,674,664,134Other receivablesXVII (2)1,680,563,6143,836,840,864Including: Interest receivable
Dividend receivable315,789,096Inventories18,530,057,99018,771,744,852Contract assets1,867,489,9921,458,474,386Assets held for saleNon-current assets due within one yearOther current assets175,036,344127,397,199Total current assets48,443,441,99048,350,151,059Non-current assets:
Debt investmentOther debt investmentsLong-term receivablesLong-term equity investmentsXVII (3)9,389,579,2449,046,140,403Other equity instrument investment73,475,61966,280,045Other non-current nancial assetsInvestment properties437,494,135461,077,417Fixed assets3,865,130,6274,009,766,651Construction in progress647,322,776640,751,191Productive biological assetsOil and gas assetsRight-of-use assets44,765104,453Intangible assets1,432,796,2011,464,690,392Development expendituresGoodwillLong-term deferred expensesDeferred income tax assets833,341,377740,925,972Other non-current assets530,196,047818,529,549Total non-current assets17,209,380,79117,248,266,073Total assets65,652,822,78165,598,417,132Current liabilities:
Short-term borrowings1,269,182,9524,075,446,557Held-for-trading nancial liabilitiesDerivative nancial liabilitiesNotes payable5,252,294,4084,260,082,858
As at December 31, 2022
6868
ItemNote As at December 31, 2022As at December 31, 2021Accounts payable3,610,603,9374,948,441,932Advances from customersContract liabilities12,525,059,84010,907,361,553Payroll payable29,189,81829,427,722Tax payable82,609,13829,637,921Other payables2,716,399,2441,305,581,786Including: Interest payable
Dividends payable6,5936,593Liabilities held for saleNon-current liabilities due within one year6,152,492,9301,844,958,736Other current liabilitiesTotal current liabilities31,637,832,26727,400,939,065Non-current liabilities:
Long-term borrowings18,447,465,65622,550,175,571Bonds payableIncluding: preferred stock
Perpetual bondLease liabilities6,220Long-term payablesLong-term payroll payableEstimated liabilities154,863,743176,577,960Deferred income257,656,046305,215,630Deferred income tax liabilitiesOther non-current liabilities2,321,173Total non-current liabilities18,862,306,61823,031,975,381Total liabilities50,500,138,88550,432,914,446Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)5,268,353,5015,268,353,501Other equity instruments500,000,000500,000,000Including: preferred stock
Perpetual bond500,000,000500,000,000Capital reserves4,914,468,6834,914,468,683Less: treasury stockOther comprehensive income20,882,527-8,614,560Special reservesSurplus reserves1,703,410,4031,678,750,223Undistributed prots2,745,568,7822,812,544,839Total owners’ equity (or shareholders' equity)15,152,683,89615,165,502,686Total liabilities and owners’ equity (or shareholders' equity)65,652,822,78165,598,417,132
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Balance Sheet of the Parent Company(Continued)
Unity: Yuan Currency: CNYAs at December 31, 2022
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
6969
2022
ItemNote20222021I. Total operating revenue30,191,792,98725,977,976,968
Including: Operating revenueVII (61)30,191,792,98725,977,976,968
Interest incomePremiums earnedFee and commission incomeII. Total operating cost29,226,104,24326,137,975,161
Including: operating costsVII (61)26,145,431,98623,498,271,033
Interest expensesFee and commission expenseSurrender valueNet amount of compensation payoutNet reserves for insurance liabilitiesPolicy holder dividend expenseReinsurance expensesTaxes and surchargesVII (62)174,759,457108,179,417Selling and distribution expensesVII (63)176,805,664115,347,438General and administrative expensesVII (64)835,690,168869,195,529Research and development expendituresVII (65)1,118,337,091883,154,222Financial expensesVII (66)775,079,877663,827,522Including: interest expenses1,038,321,0651,094,451,482
Interest income413,595,714356,324,952Plus: other incomesVII (67)104,014,20475,986,080
Income from investment (loss expressed with “-”)VII (68)204,359,3581,286,473,690Including: Income from investment of joint venture and cooperative enterprise170,402,945237,773,613
Income from derecognition of nancial assets measured at amortized
cost
-20,135,378Exchange gain (loss expressed with “-”)Net exposure hedging gain (loss expressed with “-”)Income from fair value changes (loss expressed with “-”)VII (70)-276,050,580-235,912,837Credit impairment losses (loss expressed with “-”)VII (71)-346,156,434-155,561,886Assets impairment losses (loss expressed with “-”)VII (72)-92,510,638-294,180,123Income from disposal of assets (loss expressed with “-”)VII (73)66,186,62271,278,254III. Operating prots (loss expressed with “-”)625,531,276588,084,985
Plus: non-operating incomeVII (74)32,139,60726,667,187Less: non-operating expenditureVII (75)2,436,0959,411,053IV. Total prots (total loss expressed with “-”)655,234,788605,341,119Less: income tax expensesVII (76)57,672,44076,995,542V. Net prots (net loss expressed with “-”)597,562,348528,345,577 (I) Classied by business continuity
1. Net prots from ongoing operation (net loss expressed with “-”)597,562,348528,345,577
2. Net prots from discontinuing operation (net loss expressed with “-”)
(II) Classied by ownership
1. Net prot attributable to the shareholders of parent company (net loss expressed with “-”)371,937,232439,839,245
2. Minority interests (net loss expressed with “-”)225,625,11688,506,332
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Income Statement
Unity: Yuan Currency: CNYJanuary to December in 2022
7070
ItemNote20222021VI. Net of tax of other comprehensive income122,166,570-10,934,767(I) Net amount of after-tax other comprehensive income attributable to the owners of theparent company
94,221,045-6,427,660
1. Other comprehensive income that can't be reclassied into prot and loss6,116,2374,058,150
(1) Remeasure the variation of net indebtedness or net asset of dened benet plan
(2) Other comprehensive income that can't be reclassied into prot and loss in the invested
enterprise under equity method
(3) Fair value change of other equity instrument investments6,116,2374,058,150
(4) Fair value change of enterprise credit risks
2. Other comprehensive income that will be reclassied into prot and loss88,104,808-10,485,810
(1) Other comprehensive income that will be reclassied into prot and loss in the invested
enterprise under equity method
20,743,89310,458,625
(2) Fair value change of other debt investments
(3) Amount of nancial assets reclassied into other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash ow hedging reserve
(6) Translation reserve67,360,915-20,944,435
(7) Others
(II) Net of tax of other comprehensive income attributable to the minority shareholders27,945,525-4,507,107VII. Total comprehensive income719,728,918517,410,810
(I) Total comprehensive income belonging to parent company466,158,277433,411,585
(II) Total comprehensive income belonging to minority shareholders253,570,64183,999,225VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share)0.070.08
(II) Diluted earnings per share (Yuan/share)0.070.08
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Income Statement(Continued)
Unity: Yuan Currency: CNYJanuary to December in 2022
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
In case of business combination under common control in current period, the net prot realized by the combined partybefore combination was RMB 0, and the net prot realized by the combined party in the previous period was RMB 15,709,642.
7171
2022
ItemNote20222021I. Operating revenueXVII (4)26,167,200,14022,989,491,248
Less: operating costsXVII (4)23,715,294,40121,313,600,636
Taxes and surcharges99,236,62046,991,429Selling and distribution expenses155,895,90298,488,160General and administrative expenses440,171,981468,393,559Research and development expenditures813,395,559734,454,314Financial expenses884,406,720854,806,739Including: interest expenses799,727,505874,447,716
Interest income41,733,10219,153,277Plus: other incomes75,037,35741,374,241Income from investment (loss expressed with “-”)XVII (5)604,019,4891,286,146,576Including: Income from investment of joint venture and cooperative enterprise170,768,840232,454,488
Income from derecognition of nancial assets measured at amortized cost-20,135,378Net exposure hedging gain (loss expressed with “-”)Income from fair value changes (loss expressed with “-”)-253,335,714 -201,856,923Credit impairment losses (loss expressed with “-”)-274,770,970 -85,087,358Assets impairment losses (loss expressed with “-”)-71,850,880 -298,095,570Income from disposal of assets (loss expressed with “-”)4,769,91340,410,977II. Operating prots (loss expressed with “-”)142,668,152255,648,354Plus: non-operating income12,598,4768,526,790Less: non-operating expenditure1,097,1495,856,604III. Total prots (total loss expressed with “-”)154,169,479258,318,540Less: income tax expenses-92,432,319 -20,080,948IV. Net prots (loss expressed with “-”)246,601,798278,399,488(I) Net prots from ongoing operation (net loss expressed with “-”)246,601,798278,399,488(II) Net prots from discontinuing operation (net loss expressed with “-”)V. Net of tax of other comprehensive income29,497,08713,884,144(I) Other comprehensive income that can't be reclassied into prot and loss6,116,2374,058,150
1. Remeasure the variation of net indebtedness or net asset of dened benet plan
2. Other comprehensive income that can't be reclassied into prot and loss in the invested
enterprise under equity method
3. Fair value change of other equity instrument investments6,116,2374,058,150
4. Fair value change of enterprise credit risks
(II) Other comprehensive income that will be reclassied into prot and loss23,380,8509,825,994
1. Other comprehensive income that will be reclassied into prot and loss in the invested
enterprise under equity method
20,743,89310,458,625
2. Fair value change of other debt investments
3. Amount of nancial assets reclassied into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash ow hedging reserve
6. Translation reserve2,636,957-632,631
7. Others
VI. Total comprehensive income276,098,885292,283,632VII. Earnings per share:
(I) Basic earnings per share (Yuan/share)(II) Diluted earnings per share (Yuan/share)
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Income Statement of Parent Company
Unity: Yuan Currency: CNYJanuary to December in 2022
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
7272
ItemNote20222021I. Cash ow from operating activities:
Cash from selling commodities or o?ering labor25,267,511,26428,080,136,462Net increase of customer deposit and deposit from other banksNet increase of borrowings from central bankNet increase of borrowing funds from other nancial institutionsCash from obtaining original insurance contract premiumNet cash received from reinsurance businessNet increase in the deposits and investment of insuredCash from interest, handling charges and commissionsNet increase of borrowing fundsNet increase of repurchase of business fundsNet cash from acting trading securitiesRefund of tax and levies855,636,866727,776,774Other cash received related to operating activities244,003,096308,351,304Subtotal cash inows from operating activities26,367,151,22629,116,264,540Cash paid for goods purchased and services received19,831,977,45323,592,910,907Net increase of customer loans and advancesNet increase of amount due from central bank and interbankCash paid for original insurance contract claims paymentNet increase of lending fundsCash paid for interest, handling charges and commissionsCash paid for policy dividendCash paid to and for employees2,574,314,3782,353,107,660Taxes and fees paid594,993,030489,545,705Other cash paid related to operating activities797,302,342561,060,750Subtotal cash outows from operating activities23,798,587,20326,996,625,022Net cash ows from operating activities2,568,564,0232,119,639,518II. Cash ows from investment activities:
Cash from investment withdrawal17,165,7582,162,928,251Cash from investment income159,044,2191,012,740,327Net cash received from disposal of xed assets, intangible assets and other long-term assets19,391,609161,312,919Net cash from disposal of subsidiaries and other business unitsOther cash received related to investment activities209,457,444425,449,726Subtotal cash inows from investment activities405,059,0303,762,431,223Cash paid for purchase of xed assets, intangible assets and other long-term assets488,778,0591,265,404,618Cash paid for investments6,000,000Net increase in hypothecated loanNet cash paid for obtaining subsidiaries and other business unitsOther cash paid related to investment activitiesSubtotal cash outows from investment activities488,778,0591,271,404,618Net cash ow from investment activities-83,719,0292,491,026,605III. Cash ows from nancing activities:
Cash from absorption of investments98,327,900144,759,800
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Cash Flows
Unity: Yuan Currency: CNYJanuary to December in 2022
7373
2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Cash Flows(Continued)
Unity: Yuan Currency: CNYJanuary to December in 2022ItemNote20222021Including: cash received from subsidies’ absorption of minority shareholders’ investment98,327,900144,759,800Cash received from borrowings38,626,275,73835,211,869,191Other cash received related to nancing activities618,107,7481,309,979,506Cash received from issuance of other equity instruments500,000,000Cash received from issuance of bonds500,000,000Subtotal cash inows from nancing activities40,342,711,38636,666,608,497Cash repayments of amounts borrowed42,832,240,80037,441,150,454Cash paid for distribution of dividends, prots or interest expenses1,395,285,2521,185,819,717Including: dividends and prots paid by subsidiaries to minority shareholders58,000,00062,338,380Other cash paid related to nancing activities838,344,8711,018,806,687Subtotal cash outows from nancing activities45,065,870,92339,645,776,858Net cash ows from nancing activities-4,723,159,537 -2,979,168,361IV. Impact of exchange rate movements on cash and cash equivalents163,578,103-79,402,225V. Net increase of cash and cash equivalents-2,074,736,440 1,552,095,537
Plus: beginning balance of cash and cash equivalents4,449,837,8772,897,742,340VI. Ending balance of cash and cash equivalents2,375,101,4374,449,837,877
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
7474
ItemNote20222021I. Cash ow from operating activities:
Cash from selling commodities or o?ering labor22,387,866,56520,415,901,796Refund of tax and levies635,424,765717,350,885Other cash received related to operating activities225,294,772254,588,745Subtotal cash inows from operating activities23,248,586,10221,387,841,426Cash paid for goods purchased and services received21,040,995,99816,874,301,352Cash paid to and for employees1,321,000,9121,260,190,498Taxes and fees paid123,242,97890,995,366Other cash paid related to operating activities381,273,867525,166,211Subtotal cash outows from operating activities22,866,513,75518,750,653,427Net cash ows from operating activities382,072,3472,637,187,999II. Cash ows from investment activities:
Cash from investment withdrawal17,165,7582,162,928,251Cash from investment income236,682,5511,017,732,338Net cash received from disposal of xed assets, intangible assets and other long-term assets18,283,47240,410,977Net cash from disposal of subsidiaries and other business unitsOther cash received related to investment activitiesSubtotal cash inows from investment activities272,131,7813,221,071,566Cash paid for purchase of xed assets, intangible assets and other long-term assets286,375,311311,389,255Cash paid for investments208,679,9731,532,363,100Net cash paid for obtaining subsidiaries and other business unitsOther cash paid related to investment activitiesSubtotal cash outows from investment activities495,055,2841,843,752,355Net cash ow from investment activities-222,923,5031,377,319,211III. Cash ows from nancing activities:
Cash from absorption of investmentsCash received from borrowings36,266,553,32832,323,238,811Cash received from issuance of other equity instruments500,000,000Cash received from issuance of bonds500,000,000Other cash received related to nancing activities611,100,376Subtotal cash inows from nancing activities37,877,653,70432,323,238,811Cash repayments of amounts borrowed39,402,630,67233,578,947,138Cash paid for distribution of dividends, prots or interest expenses1,096,677,413976,207,930Other cash paid related to nancing activities500,006,22055,135Subtotal cash outows from nancing activities40,999,314,30534,555,210,203Net cash ows from nancing activities-3,121,660,601-2,231,971,392IV. Impact of exchange rate movements on cash and cash equivalents75,244,800-42,758,085V. Net increase of cash and cash equivalents-2,887,266,9571,739,777,733
Plus: beginning balance of cash and cash equivalents3,594,644,4031,854,866,670VI. Ending balance of cash and cash equivalents707,377,4463,594,644,403
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Statement of Cash Flows of the Parent Company
Unity: Yuan Currency: CNYJanuary to December in 2022
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
7575
2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Changes in Owners’ Equity
Unity: Yuan Currency: CNY
January to December in 2022
Item
2022
Equity attributable to the owners of the parent company
Minority
equityTotal owners’equity
Paid-in capital
(or sharecapital)Other equity instruments
Capitalreserves
Less: treasurystockOther
comprehensiveincome
Specialreserves
Surplusreserves
General riskpreparation
Undistributedprots
OthersSub-total
PreferredstockPerpetualbondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,842,515,715-69,355,0581,934,6761,679,258,4962,767,511,30114,990,218,6312,659,834,38917,650,053,020Plus: changes in accounting policiesPrior period error correctionBusiness combination under common controlOthersII. Beginning balance in current year5,268,353,501500,000,0004,842,515,715-69,355,0581,934,6761,679,258,4962,767,511,30114,990,218,6312,659,834,38917,650,053,020III. Increase/decrease in the current year (“-” for decrease) 94,221,045 1,010,884 24,660,180 58,359,377 178,251,486 294,040,313472,291,799(I) Total comprehensive income94,221,045371,937,232466,158,277253,570,641719,728,918(II) Owner’s invested and decreased capital98,327,90098,327,900
1. Common stock invested by the owners98,327,90098,327,900
2. Capital invested by other equity instrument holders500,000,000500,000,000500,000,000
3. Amount of share-based payment included in the owner’s equity
4. Others
5. Capital reduced by other equity instrument holders-500,000,000-500,000,000
-500,000,000
(III) Prot distribution24,660,180-313,577,855-288,917,675-58,000,000-346,917,675
1. Withdrawal of surplus reserves24,660,180-24,660,180
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders)-263,417,675-263,417,675-58,000,000-321,417,675
4. Others-25,500,000-25,500,000-25,500,000(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves1,010,8841,010,884141,7721,152,656
1. Amount withdrawn in the current year50,813,289 50,813,289 2,682,40653,495,695
2. Amount used in the current year49,802,405 49,802,405 2,540,63452,343,039(VI) OthersIV. Balance at the end of the current year5,268,353,5010500,000,00004,842,515,715024,865,9872,945,5601,703,918,67602,825,870,678015,168,470,1172,953,874,70218,122,344,819
7676
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Changes in Owners’ Equity(Continued)
Unity: Yuan Currency: CNY
January to December in 2022
Item
2021
Equity attributable to the owners of the parent company
Minority
equityTotal owners’
equity
Paid-in capital
(or sharecapital)Other equity instruments
Capital
reserves
Less: treasurystockOther
comprehensiveincome
Special
reserves
Surplusreserves
General riskpreparation
Undistributedprots
OthersSub-total
PreferredstockPerpetualbondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,834,854,332-62,927,3981,936,1531,651,418,5472,377,187,00514,570,822,1402,504,416,07117,075,238,211Plus: changes in accounting policiesPrior period error correctionBusiness combination under common controlOthersII. Beginning balance in current year5,268,353,501500,000,0004,834,854,332-62,927,3981,936,1531,651,418,5472,377,187,00514,570,822,1402,504,416,07117,075,238,211III. Increase/decrease in the current year (“-” for decrease)7,661,383-6,427,660-1,47727,839,949390,324,296419,396,491155,418,318574,814,809(I) Total comprehensive income-6,427,660439,839,245433,411,58583,999,225517,410,810(II) Owner’s invested and decreased capital7,661,3837,661,383133,576,567141,237,950
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 subsidiaries144,759,800144,759,800
6. Investments received by subsidiaries from minority shareholders7,661,3837,661,383-11,183,233-3,521,850(III) Prot distribution27,839,949-49,514,949-21,675,000-62,338,380-84,013,380
1. Withdrawal of surplus reserves27,839,949-27,839,949
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 decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves-1,477-1,477180,906179,429
1. Amount withdrawn in the current year78,010,44278,010,4423,867,72381,878,165
2. Amount used in the current year78,011,91978,011,9193,686,81781,698,736(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,842,515,715-69,355,0581,934,6761,679,258,4962,767,511,30114,990,218,6312,659,834,38917,650,053,020
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
7777
2022
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Statement of Changes in Owners’ Equity of the Parent Company
Unity: Yuan Currency: CNY
January to December in 2022
Item
2022
Paid-in capital (or
share capital)
Other equity instruments
Capital reservesLess: treasurystockOther
comprehensive
incomeSpecialreserves
Surplus reserves
UndistributedprotsTotal owners’equity
Preferred
stockPerpetual bondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,914,468,683-8,614,5601,678,750,2232,812,544,83915,165,502,686Plus: changes in accounting policies
Prior period error correctionOthersII. Beginning balance in current year5,268,353,501500,000,0004,914,468,683-8,614,5601,678,750,2232,812,544,83915,165,502,686III. Increase/decrease in the current year (“-” for decrease)29,497,08724,660,180-66,976,057-12,818,790(I) Total comprehensive income29,497,087246,601,798276,098,885(II) Owner’s invested and decreased capital
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders500,000,000500,000,000
3. Amount of share-based payment included in the owner’s equity
4. Others
5. Capital reduced by other equity instrument holders-500,000,000-500,000,000(III) Prot distribution24,660,180-313,577,855-288,917,675
1. Withdrawal of surplus reserves24,660,180-24,660,180
2. Distribution of owners (or shareholders)-263,417,675-263,417,675
3. Others-25,500,000-25,500,000(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year29,362,55929,362,559
2. Amount used in the current year-29,362,559-29,362,559(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,914,468,68320,882,5271,703,410,4032,745,568,78215,152,683,896
7878
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Statement of Changes in Owners’ Equity of the Parent Company(Continued)
Unity: Yuan Currency: CNY
January to December in 2022
Item
2021
Paid-in capital
(or sharecapital)
Other equity instruments
CapitalreservesLess: treasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesUndistributedprotsTotal owners’equity
Preferred stockPerpetual bondOthers
I. Balance at the end of the last year5,268,353,501500,000,0004,914,468,683-22,498,7041,650,910,2742,583,660,30014,894,894,054Plus: changes in accounting policies
Prior period error correctionOthersII. Beginning balance in current year5,268,353,501500,000,0004,914,468,683-22,498,7041,650,910,2742,583,660,30014,894,894,054III. Increase/decrease in the current year (“-” for decrease)13,884,14427,839,949228,884,539270,608,632(I) Total comprehensive income13,884,144278,399,488292,283,632(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) Prot distribution27,839,949-49,514,949-21,675,000
1. Withdrawal of surplus reserves27,839,949-27,839,949
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 decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year42,890,52342,890,523
2. Amount used in the current year42,890,52342,890,523(VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,914,468,683-8,614,5601,678,750,2232,812,544,83915,165,502,686
Chairman ofthe Company:
Person in charge ofaccounting work:
Person in charge ofaccounting agency:
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2022III. Company prole1 Company prole
√Applicable □Not applicable
Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to as “the Company”) is a joint-stock company limitedestablished on September 8, 1997 through restructuring Shanghai Zhenhua Port Machinery Company Limited (hereinafterreferred to as “Zhenhua Company”). Both the registration place and the address of the headquarters are in Shanghai City, P. R.China.
As approved by ZWFZ (1997) No.42 Document issued by the Securities Commission under the State Council, theCompany 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 Companyadditionally issued of 88 million common shares (RMB denominated) (A-share) held by the domestic investors in December2000. 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 additionallyissued 114,280,000 A-shares held by the domestic investors on December 23, 2004. The additionally issued A-shares werelisted at Shanghai Stock Exchange respectively for trading on December 31, 2004 and January 31, 2005.
As approved by ZJFXZ (2007) No. 346 Document of China Securities Regulatory Commission, the Companyadditionally issued 125,515,000 A-shares held by the domestic investors on October 15, 2007. The additionally issuedA-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 privatelyplaced 169,794,680 A-shares on Sept. 22, 2008 to its controller China Communications Construction Co., Ltd. (hereinafterreferred to as “China Communications Corporation”). A-shares privately placed were the tradable shares with limited tradingconditions. From Mar. 20, 2012 on, the term of trading limitation expired for above-mentioned A-shares which were listed atShanghai Stock Exchange for trading.
By December 31, 2022, after all issuances of the shares and bonus shares distributed in the past year, the total sharesof the Company amounted to 5,268,353,501 shares, par value per share was RMB 1. The share capital totaled up to RMB5,268,353,501.
On December 18, 2005, China Road and Bridge Construction Group General Company and the Company’s formercontrolling shareholder China Harbor Construction (Group) General Company were merged into China CommunicationsConstruction (Group) Co. Ltd after restructuring (hereafter referred to as “CCCG”). In accordance with the O?cial Reply toOverall 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 Councilon Aug. 16, 2006, the reorganization proposal of China Communications Construction (Group) Co., Ltd approved in theO?cial Reply to the Issues Concerning Management of State-owned Stock Equity of China Communications ConstructionCo., Ltd. (GZCQ [2006] No.1072 Document) on Sept. 30, 2006 and the O?cial Reply to Approval of China CommunicationsConstruction Co., Ltd.’s Announcement of Purchase Report of Road and Bridge Construction Co., Ltd. and ShanghaiZhenhua Port Machinery (Group) Co., Ltd. and Exemption of Their Obligations for Purchase by O?er (ZJGSZ [2006] No.227 Document), CCCG solely initiated the incorporation of China Communications Construction Co., Ltd. on Oct. 8, 2006and invested the stock equity of the Company held into the newly incorporated China Communications Co., Ltd. With thecompletion 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 approvedthe Proposal for Transfer of Some Shares of Shanghai Zhenhua Heavy Industries (Group) Co., Ltd by Agreement andAssociated Transaction and agreed to transfer totally 1,316,649,346 shares of this Company held by it to CCCG and CCCG(Hong Kong) Holdings Co., Ltd. (hereinafter referred to as “CCCG Hong Kong”), accounting for 29.990% of the total sharesof 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 totalshares 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 theCompany.
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, o?shore heavy-duty equipment,engineering machinery, engineering vessel and large-sized metal structural members and their parts and components; repairof vessel; leasing of self-produced crane, sales of the self-produced products; international shipment by available specialtransportation vessel and specialized contracting for steel structure engineering.
The nancial statements have been approved by the resolution of the Board of Directors of the Company on March 30,2023.
8484
2 Scope of consolidated nancial statements
√Applicable □Not applicable
The consolidation scope of the consolidated nancial statements is determined based on control. For the changes in thecurrent period and the main subsidiaries included in the scope of consolidation, please see Note IX (1).IV. Basis of preparation for nancial statements
1 Basis of preparation
The financial statements are prepared on the basis of the Accounting Standards for Business Enterprise– BasicStandards 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 forBusiness Enterprise”).2 Going concern
√Applicable □Not applicable
The nancial 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 historicalcost shall be adopted. The assets held for sale shall be presented at the lower of the book value and the net amount of thefair value minus the selling expenses. If the assets are impaired, the provision for impairment is made in accordance withrelevant provisions.
V. Principal accounting policies and accounting estimates
Specic accounting policies and accounting estimates tips
√Applicable □Not applicable
The Group determines the specific accounting policies and accounting estimates based on actual productionand operation characteristics, which are mainly reflected in the inventory valuation methods, income recognition andmeasurement and so on.1 Statement on compliance with the Accounting Standards for Business Enterprises
The nancial statements prepared by the Company meet the requirements of the Accounting Standards for BusinessEnterprises, and truly and completely reect the nancial position, operating results, changes in shareholders’ equity andcash ows of the Company.2 Accounting period
The Company adopts calendar year as the accounting year, which commences on January from the 1, and ends onDecember 31 of each year.3 Operating cycle
□Applicable √Not applicable
4 Functional currency
RMB is the recording currency of the Group and also the currency used in the nancial statements. Unless otherwisespecied, the nancial statements are presented in RMB.
The subsidiaries, joint ventures and associates under the Group shall, on the basis of the main economic environmentin which they operate, decide their own recording currency, and convert them into RMB when preparing nancial 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 enterprisesare ultimately controlled by the same party or the same parties both before and after the business combination and on whichthe control is not temporary.
The assets and liabilities that the combining party obtains in a business combination under common control(including thegoodwill formed by the acquisition of the combined party by the ultimate controlling party), are subject to the correspondingaccounting treatment in accordance with the carrying amount in the nancial statements of the ultimate controlling partyon the combination date. The di?erence between the carrying amount of the net assets obtained from the combination andthe carrying amount of the consideration paid (or total par value of the shares issued) for the combination is treated as an
8585
2022adjustment to capital premium in the capital reserves and the capital reserves carried out under the former system. If thecapital premium is not su?cient to absorb the di?erence, the remaining balance is adjusted against retained earnings.Business combination not under common controlThe business combination not under common control is a business combination in which all of the combining enterprisesare not controlled by the same party or the same parties before and after the combination.The identifiable assets, liabilities and contingent liabilities obtained of the acquiree in the business combination notunder 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 issuedequity securities) and the fair value of the held stock equity of the acquiree before the acquisition date and the fair value ofthe identiable net assets obtained in the combination from the acquiree is conrmed as goodwill, and shall be accountedfor subsequent measurement after subtracting the accumulated impairment losses from the cost. If the sum of the fair valueof the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stock equity ofthe acquiree before the acquisition date is smaller than the fair value of the identiable net assets of the acquiree obtainedin the combination, firstly recheck the measurement of the fair value of the identifiable assets, liabilities and contingentliabilities obtained from the acquiree, and the fair value of the combined consideration paid (or fair value of the issued equitysecurities), and the fair value of the held stock equity of the acquiree before the acquisition date, after that, if the sum thefair value of the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stockequity of the acquiree before the acquisition date is still smaller than the fair value of the identiable net assets obtained incombination from the acquiree, the balance shall be included in the current prot or loss.6 Preparation of consolidated nancial statements
√Applicable □Not applicable
The consolidation scope of consolidated nancial statements is determined on the basis of control, covering the nancialstatements of the Company and all the subsidiaries. A subsidiary is a subject which is controlled by the Company (includingthe enterprise, the separable part of the invested entity, and the structural entity controlled by the Company).
When preparing the consolidated nancial statements, the subsidiary adopts the accounting period and the accountingpolicies consistent with the Company. Assets, liabilities, equity, income, expenses and cash ows arising from all transactionsbetween the Group’s internal companies are fully o?set at the time of combination.
If the current losses borne by the minority shareholders of the subsidiary exceed the shares held by the minorityshareholders in the initial shareholders’ equity of the subsidiary, the balance still o?sets the minority’s equity.
For the subsidiaries acquired in business combination not under common control, the operating results and the cashows of the acquiree shall be included in the consolidated nancial statements on the date of acquisition of control till thetermination of control. When preparing the consolidated nancial statements, the nancial statements of subsidiaries shall beadjusted based on the fair value of various identiable assets, liabilities and contingent liability conrmed on the acquisitiondate.
For the subsidiaries acquired in business combination under common control, the operating results and the cash owsof the combined party shall be included in the consolidated nancial statements at the beginning of the combination period.When preparing the consolidated nancial statements, relevant items of the previous nancial statements shall be adjustedand the reporting entity formed after the consolidation is regarded as existed since the ultimate controlling party begins toimplement 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 theloss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as atransaction dealing with the equity investment of the subsidiary and losing control. However, before the loss of control, thedi?erence between the disposal price and the book value of the long-term equity investment corresponding to the disposedequity is recognized as other comprehensive income in individual nancial statements and transferred to the current protor loss when the control is lost. If the above-mentioned transactions are not part of a package transaction, accountingtreatment shall be carried out for each transaction separately according to whether the control is lost or not. If the control islost, the remaining equity is re-measured at fair value at the date when control is lost. The di?erence between the sum of theconsideration received on disposal and the fair value of remaining equity and the share of the former subsidiary's net assetscumulatively calculated from the acquisition date according to the original proportion of shareholders' equity, is included inthe prot or loss in the period in which control is lost. If goodwill is involved, the amount of the goodwill shall be deductedwhen calculating and determining the prot or loss on the disposal of the subsidiary. Other comprehensive income relatedto the equity investment of the original subsidiary shall be accounted on the same basis as the subsidiary’s direct disposalof relevant assets or liabilities when the control is lost. The shareholders’ equity recognized due to changes in shareholders’equity other than net prot or loss, other comprehensive income and prot distribution related to the original subsidiary shallbe transferred to current prot or loss when the control is lost.
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7 Classication of joint venture arrangement and methodsof joint operation accounting treatment
□Applicable √Not applicable
8 Recognition criteria of cash and cash equivalentsCash 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 subjectto an insignicant risk of changes in value.
9 Foreign currency transactions and transaction of nancial 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 therecording currency.At the time of initial conrmation, the amount of foreign currency transaction shall be translated into the amount of therecording currency at the spot rate of the transaction date. On the date of balance sheet, the currency exchange rate of thecurrency denominated items shall be translated at the spot rate on the date of balance sheet. The transaction di?erence ofsettlement and monetary items arising therefrom, in addition to the di?erence arising from foreign currency special borrowingrelating to the assets of which the purchase and construction conform to the capitalized conditions, which shall be handledin accordance with the principle of capitalization of borrowing costs, shall be included in the current prot or loss. The foreigncurrency 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 shallbe translated at the spot rate on fair value determination date, and the di?erence arising therefrom shall be included in thecurrent prot or loss or other comprehensive income according to the nature of the non-monetary items.In the case of overseas business, the Group translates its recording currency into RMB in preparing the financialstatements: for assets/liabilities in the balance sheet, spot exchange rate on the date of balance sheet is used for translation.As for the items under the shareholders’ equity, except for those under “undistributed prots”, other items are translated usingthe spot exchange rate at the time of occurrence; the income and expense items in the income statement shall be translatedat the spot exchange rate of the transaction. The conversion di?erence of foreign currency statements arising from abovetranslation shall be recognized as other comprehensive income. When disposing overseas operations, other comprehensiveincome related to the overseas operation shall be transferred into the current prots and losses, partial disposal shall becalculated according to the proportion of disposal.Foreign currency cash ows shall be translated at the spot exchange rate on the day of occurrence of the cash ow.Cash ows from foreign subsidiaries are translated at the average exchange rate for the period in which the cash ows occur(unless exchange rate uctuations make translation at that rate inappropriate, in which case the exchange rate is the spotrate on the day of occurrence of the cash ow). E?ect of changes in exchange rate on cash amount is shown separately inthe cash ow statements as an adjustment item.10 Financial instruments
√Applicable □Not applicable
Financial instrument is the contract that forms the nancial assets of an enterprise and the nancial liabilities or equityinstruments of the other entities.
Recognition and de-recognition of nancial instruments
The Group recognizes a nancial asset or nancial liability when becoming a party to a nancial instrument contract.
Once the following conditions are satised, the Group will de-recognize nancial assets (or part of nancial assets or ofa portfolio of similar nancial assets), i.e., writing o? from its account and balance sheet:
(1) The right to receive cash ows from nancial assets expires;
(2) The right to receive the cash ow from nancial asset has been transferred, or have assumed the obligation in the
“pass-through agreement” to pay the collected cash ow timely to the third party in full; and (a) has transferred substantiallyalmost all the risks and rewards of ownership of the nancial asset, or (b) although does not transfer or retain substantiallynearly all of the risks and rewards of ownership of the nancial asset, but has given up the control over the nancial asset.
In the event that the liability of a nancial liability has been fullled, cancelled or expired, the nancial liabilities shall bede-recognized. If the existing nancial liability is replaced by the same creditor with another nancial liabilities of virtuallyentirely di?erent terms, or the terms of the existing liabilities are almost entirely modied substantially, such substitutionsor modications will be handled as the derecognition of the original liability and the recognition of new liabilities, and thedi?erence will be included in current prot or loss.
In case of trading nancial assets in the conventional way, such nancial assets will be recognized and de-recognizedon the trading day. Trading nancial assets in the conventional way refers to collecting or delivering nancial assets withinthe 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 nancial assets.
8787
2022Classication and measurement of nancial assetsAt the initial recognition, the Group's financial assets, based on the Group's management model of financial assetsand the contract cash ow characteristics of nancial assets, are classied as nancial assets measured at amortized cost,nancial assets measured at fair value through the other comprehensive income and nancial assets measured at fair valuethrough the current prot or loss.Financial assets are measured at fair value at initial recognition, while the accounts receivable or notes receivablearising from sales of goods or rendering of services, excluding the significant financing composition or the financialcomposition 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 directlyincluded in the current prot or loss, while the transaction costs relevant to other nancial assets are included in the initialrecognition amount.The subsequent measurement of nancial assets depends on the classication thereof:
Investment in debt instruments measured at amortized costFinancial assets simultaneously meet the following conditions are classified as the financial assets measured atamortized cost: the management model of such nancial assets aims at the collection of contract cash ows; according tothe terms in the contract for such nancial assets, the cash ows generating on the special date are paid at the interest forthe principal and the unpaid principal. Such nancial assets are recognized as interest income by the e?ective rate method,and the gains or losses from the derecognition, modication or impairment thereof are included in the current prot or loss.
Investment in debt instruments measured at fair value through other comprehensive incomeIf nancial assets meet the following conditions at the same time, the Group classies them as nancial assets at fairvalue through other comprehensive income: the Group’s business model for the management of the financial assets isaimed at both the collection of contract cash ow and the sale of the nancial assets; the contractual terms of the nancialasset stipulate that the cash ow generated at a particular date is only the payment of the principal and interest based on theoutstanding principal amount. The interest income of such nancial assets is recognized by the e?ective interest method. Atderecognition of nancial assets, the accumulated gains or losses previously included in other comprehensive income aretransferred from the other comprehensive income to the current prot or loss.
Investment in equity instruments measured at fair value through the other comprehensive incomeThe Group irrevocably chooses to designate some non-trading equity instruments as the nancial assets measuredat fair value through the other comprehensive income, and only include the relevant dividends revenue (except for thatpartially recovered as the investment cost) in the current prot or loss, and the subsequent changes in fair values in the othercomprehensive income, without the provision for impairment. At derecognition of nancial assets, the accumulated gainsor losses previously included in other comprehensive income are transferred from the other comprehensive income to theretained earnings.Financial assets measured at fair value through the current prot or lossThe nancial assets other than the nancial assets measured at amortized cost and the nancial assets measured atfair value through the other comprehensive income are classied as the nancial assets measured at fair value through theother comprehensive income. For such nancial assets, the subsequent measurement is made at fair value, and changes infair value are included in the current prot or loss.
Classication and measurement of nancial liabilitiesAt the initial recognition, the Group’s financial liabilities are classified as: financial liabilities measured at fair valuethrough the current prot or loss and nancial liabilities measured at amortized cost. For nancial liabilities measured at fairvalue through the current prot or loss, relevant transaction costs are directly included in the current prot or loss, while thetransaction costs relevant to nancial liabilities measured at amortized cost are included in the initial recognition amount.The subsequent measurement of nancial liabilities depends on the classication thereof:
Financial liabilities measured at fair value through the current prot or lossFinancial liabilities measured at fair value through the current prot or loss include the trading nancial liabilities (includingthe derivative instruments belonging to nancial liabilities), and the nancial liabilities measured at fair value through thecurrent prot or loss. The subsequent measurement of the trading nancial liabilities (including the derivative instrumentsbelonging to nancial liabilities) is made at fair value, and changes in fair value are included in the current prot or loss. Forthe nancial liabilities measured at fair value through the current prot or loss, the subsequent measurement is made at fairvalue, and the changes in fair value are included in the current prot or loss except that the changes in fair value causedby the changes in the Group's credit risks are included in the other comprehensive income; if including the changes in fairvalue caused by the changes in the Group's credit risks in the other comprehensive income may cause or exacerbate theaccounting mismatch in prot or loss, the Group will include all changes in fair value (including the amounts a?ected by thechanges in the Group’s credit risks) in the current prot or loss.Financial liabilities measured at amortized costThe subsequent measurement of such nancial liabilities is made at amortized cost by the e?ective rate method.Impairment of nancial instrumentsBased on the expected credit losses, the Group makes the provision for impairment and recognizes the loss provisionsfor the nancial assets measured amortized cost and the investment in debt instruments measured at fair value through theother comprehensive income.
8888
For the receivables excluding signicant nancing component, the Group measures the loss provision based on theamount equivalent to the expected credit loss over the whole duration by the simplied measurement method.
Except for the above financial assets subject to the simplified measurement method, on each balance sheet date,the Group makes assessment on whether the credit risk in financial assets has had significant increase after the initialrecognition. If the credit risk does not signicantly increase after the initial recognition, standing at the rst level, the Groupwill measure the loss provision based on the amount of expected credit loss over the next 12 months , and calculate theinterest income based on the book balance at the e?ective interest rate; if the credit risk has signicantly increased afterthe initial recognition without any credit impairment, standing at the second level, the Group will measure the loss provisionbased on the amount equivalent to the expected credit loss over the whole duration; in case of any credit impairment afterthe initial recognition, standing at the third level, the Group will measure the loss provision based on the amount of expectedcredit loss over the whole duration, and calculate the interest income based on the amortized cost at the e?ective interestrate. For nancial instruments only with relatively low credit risk on the balance sheet date, the Group assumes that suchcredit risk does not signicantly increase after the initial recognition.
The Group evaluates the expected credit loss of nancial instruments individually and by portfolio. After taking the creditrisk characteristics of di?erent customers into account, the Group evaluated the expected credit loss on accounts receivableby the aging portfolio.
For the Group’s disclosure of the judgment standards for signicant increase of credit risk and denition of assets withcredit impairment, see Note V for details.
The factors reflected in the Group’s approach to measuring expected credit losses on financial instruments includethe unbiased probability weighted average amount determined by evaluating a range of possible outcomes, the time valueof money, and reasonable and substantiated information about past events, current conditions and projections of futureeconomic conditions that is available at the balance sheet date without undue additional cost or e?ort.
When the Group ceases to expect reasonably the contract cash ows of nancial assets which can be recovered inwhole or in part, the Group will directly write o? the book balance of such nancial assets.
Financial instrument o?set
Financial assets and nancial liabilities are presented in the balance sheet at the net amount after mutual o?set whenthe following conditions are met simultaneously: possess the legal right to o?set the recognized amount and such right iscurrently executable; intend to settle at net amount, or cash such nancial assets or liquidate such nancial liabilities.
Derivative nancial instruments
The Group carries out the exchange rate risk hedging by using derivative nancial instruments, such as the forwardexchange contract and the foreign exchange option contract. Derivative financial instruments are initially measured attheir fair values on date of signing relevant derivative transaction contracts and subsequently measured at their fairvalues. Derivative nancial instrument with positive fair value is recognized as an asset, and that with negative fair value isrecognized as a liability.
Gains or losses from changes in fair values of derivative instruments are directly included in the current prot 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 nancial assets to thetransferee, such nancial assets will be de-recognized; if the Group retains nearly all the risks and rewards associated withthe ownership of nancial assets, such nancial assets will be continuously recognized.
If the Group neither transfers nor retains nearly all the risks and rewards associated with the ownership of the nancialassets, the following treatments will be adopted based on different circumstances: if the Group has given up its controlover the nancial assets, the nancial assets will be derecognized, and the assets and liabilities arising therefrom will berecognized; if the Group does not give up its control over the nancial assets, the nancial assets will be recognized to theextent of its continuing involvement in the transferred nancial 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 nancing
□Applicable √Not applicable
14 Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
□Applicable √Not applicable
8989
202215 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 andother cost. The actual cost of raw materials in transit is determined by the weighted average method. The actual cost ofnished 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 costis higher than the net realizable value, the provision for inventory depreciation will be made and included in the current protor loss. The net realizable value, in the routine activities, refers to amount of the estimated selling price of inventory minusthe estimated cost to completion, estimated selling expense and relevant taxes and surcharges. At the time of making theprovision for inventory depreciation, the provision for depreciation of raw materials is made by category, and that of goods inprocess and stock commodities is made by each single inventory item.Contract performance cost classied 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 thefulfillment of performance obligations and customer payments. After offsetting the contract assets and contract liabilitiesunder 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 rightdepends on factors other than the passage of time.
For details of the Group’s determination and accounting treatment method of expected credit loss of contract assets,please refer to Note V (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 continuoususe is classied as held for sale. When all of the following conditions are met, it is classied as held for sale: the asset ordisposal group must be available for immediate sale in its present condition subject to terms that are usual and customaryfor sales of such assets or disposal groups; its sales must be highly probable, i.e., the Company has made a decision on thesale plan and has obtained a conrmed o?er, and the sale is expected to be completed within one year (for the sales subjectto approval by relevant authority or regulatory department as required in relevant regulations, it has been approved). If thecontrol over a subsidiary is lost due to the sale of the investment in the subsidiary, regardless of whether part of the equityinvestment is retained after the sale, as long as the conditions for classication as held for sale are met, the investment inthe subsidiary as a whole is classied as held for sale in the individual nancial statements, and all the assets and liabilitiesof the subsidiary are classied as held for sale in the consolidated nancial statements.
If the book value of a non-current asset or disposal group (other than nancial 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 writtendown to the net amount of the fair value minus the selling expenses, the amount written down shall be recognized as assetsimpairment losses and included in the current prot or loss, and the provision for impairment of assets held for sale is madeat the same time. No depreciation or amortization is made for the non-current assets held for sale or non-current assets indisposal 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
9090
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 ofowners' equity acquired from the combinee on the combination date in the consolidated nancial statements of the ultimatecontroller; the di?erence between the initial investment cost and the book value of the combination consideration is used toadjust the capital reserves (if the capital reserves are insu?cient to o?set, the retained earnings will be o?set); for the othercomprehensive income before the combination date, at the disposal of such investment, the accounting treatment identicalto that for the direct treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognizedon account of the change in other shareholders’ equity of the investee other than net prot or loss, other comprehensiveincome and prot distribution is transferred in the current prot or loss at the disposal of such investment; in which, after suchdisposal, if such investment is still the long-term equity investment, it will be carried forward in proportion; if it is convertedinto the nancial instrument, it will be carried forward in full.The initial investment cost of a long-term equity investment acquired through business combination not under commoncontrol is recognized at the combination cost (if the business combination not under common control is realized throughseveral transactions by step, the sum of the book value of the equity investment of the acquiree held before the acquisitiondate and the cost of investment newly added on the acquisition date is recognized as the initial investment cost), and thecombination cost includes the asset paid by the acquiree, liability incurred or borne by the acquiree, and the fair valuesof issued equity securities; for the other comprehensive income held before the acquisition date and recognized due tothe accounting under equity method, at the disposal of such investment, the accounting treatment identical to that for thedirect treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognized on accountof the change in other shareholders’ equity of the investee other than net prot or loss, other comprehensive income andprot distribution is transferred in the current prot 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 thefinancial instrument, it will be carried forward in full. The accumulated changes in fair values of the equity investmentsheld before the acquisition date, which was included in the other comprehensive income as the nancial instruments, arefully transferred in the retained earnings, on the accounting at cost. For long-term equity investments acquired not throughbusiness combination, their initial investment costs are determined by the following ways: if the long-term equity investmentis acquired through cash payment, the initial investment cost will be the sum of the acquisition price actually paid and thecosts, taxes and other necessary costs, which are directly relevant to the long-term equity investment; if the long-term equityinvestment is acquired by issuing equity securities, the initial investment cost will be the fair value of the equity securitiesissued.The long-term equity investments where the Company could control the investee shall be accounted in individualnancial statements of the Company under the cost method. Control means the power owned over the investee and enjoysthe variable return through participating in activities related to the investee, and has the ability to a?ect its return by using thepower over the investee.
Under the cost method, long-term equity investments are valuated at initial investment cost. The Company shallincrease or recover the investment to adjust the cost of long-term equity investments. Cash dividends or prots declared anddistributed by the investee should be recognized as investment income in the current period.If the Group has joint control over or signicant inuence on the investees, long-term equity investments are accountedfor with the equity method. Joint control refers to the control shared over an arrangement in accordance with the relevantstipulations, and the decision-making of related activities of the arrangement should not be made before the party sharingthe control right agrees the same. Signicant inuence refers to the power to participate in making decisions on the nancialand operating policies of the investee, but not the power to control, or jointly control, the formulation of such policies withother parties.For long-term equity investments measured under the equity method, if the initial investment costs are higher than theinvestor's attributable share of the fair value of the investee's identiable net assets, the initial costs of the long-term equityinvestments shall be recognized; if the initial investment costs are lower than the investor's attributable share of the fair valueof the investee's identiable net assets, the di?erence shall be recognized in current prot and loss and at the same time theadjustment 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 tothe shares of net prot and loss and other comprehensive income realized by the investee which the Company shall enjoyor bear, recognize the prot and loss on the investments and other comprehensive income and adjust the book value of thelong-term equity investments. When recognizing the share of net prot or loss of the investee that the Group shall enjoy,based on fair value of various identifiable assets and others of the investee on acquisition and according to accountingpolicies and accounting periods of the Group, the Group shall write o? the part of incomes from internal transactions withassociates and joint ventures which are attributable to the investor according to the shareholding ratio (but the loss frominternal transactions is the asset impairment loss, its total amount shall be recognized) and then recognize the prot andloss on investments on such basis, except those assets investments or sale constitute business. The Group shall, in the
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2022light of the prots or cash dividends that the investee declares to distribute, calculate the part it should share and reduce thebook value of the long-term equity investment correspondingly. Recognition of the net loss in the investee shall be withinthe limit that the book value of long-term equity investments and other long-term interests which substantially form the netinvestment in the investee are reduced to zero, unless the Group is obliged to bear extraneous losses; For other changesin shareholder's equity of the investee excluding net losses or prots, other comprehensive income or prot distribution, thebook 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 beincluded in the current investment income. For long-term equity investments recognized under equity method, when theequity method is no longer adopted due to the disposal, accounting treatment should be made for other comprehensiveincome previously recognized under the equity method by using the same basis for the investee to directly dispose therelevant assets or liabilities. Shareholder's equity recognized from the investee's changes in other shareholder’s equityother than net prot or loss, other comprehensive income and prot distribution should all transferred to the current protsor losses. If the equity method is still adopted, the relevant other comprehensive income accounted by the original equitymethod shall be accounted on the same basis as the invested entity's direct disposal of relevant assets or liabilities, and shallbe transferred to the current prot or loss in proportion. The shareholders’ equity recognized due to changes in shareholders’equity of the investee other than net prot or loss, other comprehensive income and prot distribution shall be transferred tothe current prot or loss according to corresponding proportion.The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until theloss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as atransaction dealing with the equity investment of the subsidiary and losing control. However, before the loss of control, thedi?erence between the disposal price and the book value of the long-term equity investment corresponding to the disposedequity is recognized as other comprehensive income in individual nancial statements and transferred to the current prot orloss when the control is lost. If the above-mentioned transactions are not part of a package transaction, accounting treatmentshall be carried out for each transaction separately. If the control is lost, in the individual financial statements, for theremaining equity, if the remaining equity after disposal can jointly control or has a signicant impact on the original subsidiary,it shall be recognized as long-term equity investment, and the accounting treatment shall be carried out according to relevantprovisions on the conversion of cost method into equity method; otherwise, it shall be recognized as a nancial instrument,and the di?erence between the fair value and the book value on the date of loss of control is included in the current prot orloss.22 Investment propertiesInvestment properties refer to properties that are held for the purposes of earning rental income, capital appreciation, orsome 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, ifthe economic benets associated are likely to ow in and its cost can be measured reliably, should be recorded in the cost ofinvestment property. Otherwise, such subsequent expenses should be included in current prots or losses upon occurrence.The subsequent measurement of an investment property shall be conducted by the Group under the cost method, andthe land use right and buildings shall be amortized and depreciated according to the expected useful life and net residualrate of the investment property. The expected useful lives, net residual value rate and annual depreciation (amortization) rateof the investment properties are as follows:
Estimateduseful livesEstimatednet residual value rateAnnual depreciation (amortization) rateBuildings30 years0%3.3%Land use rightLand useful lives0%
Determined according to the estimated net residualvalue and useful life for the land useful lives
The Group shall review estimated useful lives, estimated net residual value and depreciation (amortization) methods ofthe investment properties at the end of each year and shall make adjustment when necessary.When an investment property is changed for self-use, upon change, the investment property shall be converted intoxed assets or intangible assets. When the self-use property is changed to earn rentals or for capital appreciation, uponchange, xed assets or intangible assets shall be converted into investment properties. When there is a conversion, the bookvalue 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 benets relating to the xed assets may ow into the Groupand the costs of the xed assets can be measured reliably. If the subsequent disbursements relevant to a xed asset meet
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the recognition conditions, they shall be recorded in the cost of xed asset, and the book value of the replaced part shall bederecognized; otherwise, they shall be recorded in the current prots and losses.Fixed assets are initially measured at cost. The costs of externally acquired xed assets comprise their purchase prices,related taxes and surcharges and any attributable expenditure incurred to prepare the asset for its intended use.
(2) Depreciation method
√Applicable □Not applicable
Category
Depreciation
method
Useful lives (year)Residual value rate
Annualdepreciation rateBuildings and constructionsStraight-line method20-40 years0%2.5%-5%Mechanical equipmentStraight-line method3-20 years0%5%-33.3%O?ce and electronic equipmentStraight-line method3-5 years0%20%-33.3%Transportation facilities (excluding ship)Straight-line method5 years0%20%ShipStraight-line method10-30 years5%/10%3%-9.5%The Group shall review useful lives, estimated net residual value and depreciation methods of the xed assets at theend of each year and shall make adjustment when necessary.
(3) Identication basis, valuation and depreciation method of xed assets under nancing 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 typesof necessary expenditures incurred during the construction period, the capitalized borrowing costs incurred prior to the timewhen the construction is brought to the expected conditions for use and other relevant costs.The construction in progress is converted into xed assets after it reaches the expected conditions for use.25 Borrowing costs
√Applicable □Not applicable
The Group capitalizes the borrowing costs of acquisition or construction or production which may directly belong toassets that are eligible for capitalization; and other borrowing costs are included in the current prot or loss. Assets eligiblefor capitalization refer to xed assets, investment property, inventories and other assets which may reach their intended useor 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 forcapitalization have reached the working condition for their intended use or sale. The borrowing costs incurred thereafter shallbe included in the current prot or loss.
During the period of capitalization, the capitalized amount on interest of each accounting period shall be determined inaccordance 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 averagerate of used general borrowings.
If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupteddue to the matters other than necessary procedures for such assets to reach the working conditions for its intended use orsale 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 prot or loss and continue to be capitalizeduntil the acquisition, construction or production of the asset restarts.
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202226 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 termas a right-of-use asset, which is initially measured at cost. The right-of-use assets include: the initial measurement amountof the lease liability, the lease payments made on or before the commencement date of the lease term, if there is a leaseincentive, less the amount related to the lease incentive already taken; initial direct costs incurred by the lessee; the costsexpected to be incurred by the lessee to disassemble and remove the leased asset, restore the site where the leased assetis located, or restore the leased asset to the condition agreed in the lease terms. If the Group remeasures the lease liabilitydue to changes in lease payments, the book value of the right-of-use asset is adjusted accordingly. The Group subsequentlydepreciates right-of-use assets under straight-line method. If it can be reasonably certain that the ownership of the leasedasset 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 leaseterm, 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 benets may well ow into the Group and the costsof intangible assets can be measured reliably, and initially measured at costs. However, if the fair value of the intangibleassets acquired in the business combination not under common control can be reliably measured, it should be recognizedas intangible assets and measured at fair value separately. When the Company reconstructs its corporate system, for theintangible assets invested by the shareholders of the state-owned shares, the evaluation value conrmed by the state-ownedassets 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 benets tothe Group. If the said period cannot be predicted, it will be recognized as an intangible asset with indenite useful life.
The useful lives of all kinds of intangible assets are determined as follows:
Useful lifeLand use rightLand useful livesSoftware use fees5 yearsProprietary technology10 years
The land use rights acquired by the Group are usually accounted as intangible assets. For the plants and other buildingsdeveloped and constructed by the Company, relevant land use rights and constructions shall be respectively accounted asintangible assets and xed assets. For externally purchased land and buildings, the related payments are distributed in theland use right and buildings; those di?cult to be distributed shall be all handled as xed assets.For the intangible assets with limited useful life, their amount shall be amortized at the straight-line method over itsuseful 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 classied into research expendituresand development expenditures. The expenditures in research phase will be included in the current profit or loss onoccurrence. The development expenditures will be capitalized only when all of the following conditions are satisfiedsimultaneously: It is feasible technically to nish intangible assets for use or sale; It is intended to nish and use or sell theintangible assets; The usefulness of methods for intangible assets to generate economic benets shall be proved, includingbeing able to prove that there is a potential market for the products manufactured by applying the intangible assets or thereis a potential market for the intangible assets itself or the intangible assets will be used internally; It is able to nish thedevelopment of the intangible assets, and able to use or sell the intangible assets, with the support of su?cient technologies,nancial resources and other resources; and the expenditures attributable to the intangible asset during its developmentphase can be measured reliably. Development expenditures that do not meet the above conditions are included in thecurrent prot 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 andassets related to contract cost, deferred income tax, financial assets and assets held for sale. The Group shall, on thebalance sheet date, make a judgment on whether there is any indication that the assets may impair. If such indication doesexist, the Group shall estimate the recoverable amount and carry out an impairment test. Impairment tests for goodwillcaused by business combination, intangible assets with indenite useful lives, and intangible assets not reaching usablecondition 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 thefuture cash ows expected to be derived from the assets. The Group shall, on the basis of single item assets, estimate therecoverable amount. Where it is di?cult to do so, it shall determine the recoverable amount of the group assets on the basisof the asset group to which the asset belongs. The recognition of an asset group shall base on whether the main cash inowgenerated from the asset group is independent of those generated from other assets or other group assets.
Where the recoverable amount of an asset or an asset group is lower than its book value, the book value of the asset orasset group shall be written down to their recoverable amounts. The write-downs are recorded into the current prot or lossand 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 ofthe goodwill formed by business combination to the relevant asset groups by a reasonable method. Where it is di?cult to doso, it shall be apportioned to the relevant portfolio of asset groups. The related asset group or combination of asset groupsshall be the asset group or combination of asset groups that can benet from the synergy e?ect 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 anyindication shows that the asset groups or combinations of asset groups related to the goodwill may be impaired, the Groupshall rst conduct an impairment test on the asset groups or combinations of asset groups not containing goodwill, calculatethe recoverable amount and recognize the corresponding impairment loss. Then, the Group shall conduct an impairment teston the asset groups or asset groups portfolio containing goodwill, and compare it book value and recoverable amount: if therecoverable amount is lower than book value, the amount of impairment losses should be rstly used to deduct book valueof goodwill allocated to the asset group or the asset group portfolio, and then deduct book value of other assets according tothe 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 insubsequent 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 asfollows:
Amortization periodImprovement of xed assets acquired under the operating leaseExpected benecial 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 theperformance of contract obligations and customer payments. After o?setting the contract assets and contract liabilities underthe same contract, the Group presents them in net amount.For details of the Group’s determination and accounting treatment method of expected credit loss of contract assets,please refer to Note V.Contract liabilitiesContract liability refers to the obligation to transfer goods or services to customers for the consideration received orreceivable from customers, such as the money received by enterprises before transferring the promised goods or services.33 Employee compensation
Employee compensations refer to multiform remuneration or compensation o?ered by the Group in order to get servicesprovided by its employees or sever the labor relation. Employee compensation mainly includes short-term employeecompensation, post-employment benets, dismissal benets and other long-term employee benets. The welfare providedby the Company to employees’ spouses, children, dependents, family dependants of the deceased employee and otherbenecial owners also belong to employee compensation.
9595
2022
(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 isrecognized as liabilities and includes them in the current prot or loss or the related asset costs.
(2) Accounting treatment of post-employment benets
√Applicable □Not applicable
The employees of the Group participated in the endowment insurance and unemployment insurance managed by thelocal government, and also participated in the enterprise annuity, and the corresponding expenses were included in therelevant asset costs or the current prot or loss when incurred.
(3) Accounting treatment of termination benets
□Applicable √Not applicable
(4) Accounting treatment of other long-term employee benets
□Applicable √Not applicable
34 Lease liabilities
√Applicable □Not applicable
At the commencement date of the lease term, the Group recognizes the present value of the outstanding leasepayments as a lease liability, except for short-term leases and low-value asset lease. Lease payments include fixedpayments and substantially xed payments net of lease incentives, variable lease payments that depend on an index orrate, amounts expected to be payable based on the residual value of guarantee, and also include the exercise price of thepurchase option or amounts to be paid upon exercise of a lease termination option if the Group is reasonably certain that theoption will be exercised or the lease term reects that the Group will exercise the lease termination option.
When calculating the present value of the lease payments, the Group uses the interest rate embedded in the lease asthe discount rate; if the interest rate embedded in the lease cannot be determined, the incremental borrowing rate of thelessee is used as the discount rate. The Group calculates the interest expenses on lease liabilities at a xed periodic ratefor each period of the lease term and recognizes it in current prot or loss, unless otherwise provided for in the cost of therelevant assets.
After the commencement date of the lease term, the Group increases the carrying amount of the lease liability wheninterest is recognized and decreases the carrying amount of the lease liability when lease payments are made. When thereis a change in the substantial xed payment, a change in the estimated payable amount of the guaranteed residual value, achange in the index or ratio used to determine the lease payment, or a change in the evaluation result or actual exercise ofthe purchase option, renewal option or termination option, the Group remeasures the lease liability at the present value ofthe changed lease payment.35 Estimated liabilities
√Applicable □Not applicable
Except for contingent consideration and contingent liabilities assumed in business combination not under the samecontrol, when the obligations related to contingencies meet the following conditions, the Group recognizes them as estimatedliabilities:
(1) This obligation is a present obligation of the Group;
(2) The performance of such obligation is likely to result in outow of economic benets 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 relevantpresent obligations by considering comprehensively the risks with respect to contingencies, uncertainties and the time valueof money. On each balance sheet date, the Group shall review the book value of estimated liabilities. The Company shallmake corresponding adjustments to reect the current best estimate if there is any conclusive evidence indicating that suchbook value cannot reect the current best estimate.36 Share-based payment
□Applicable √Not applicable
37 Preferred shares, perpetual bonds and other nancial 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 unlimitednumber of times. For the coupon interest of the perpetual bonds, the Group has the right to postpone the payment, and thegroup has no contractual obligation to pay cash or other nancial assets. They are classied 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 fullls the performance obligation in the contract, that is, when the customerobtains control over the relevant goods or services. The acquisition of control of relevant goods or services means to be ableto dominate the use of the goods or the rendering of the services and obtain almost all the economic benets from them.Manufacturing contracts on large-sized port equipment, heavy equipment and steel structure productsThe manufacturing contracts on large-sized port equipment, heavy equipment and steel structure products betweenthe Group and customers usually only include the performance obligations of transferring large-sized port machinery andequipment, heavy equipment and steel structure products customized for customers.The large-sized port equipment, heavy equipment and steel structure products provided by the Group during theperformance of the contract are irreplaceable, however, most of the large-sized port equipment, heavy equipment salescontracts and the manufacturing contracts of some steel structure products do not stipulate that the Group has the rightto collect money for the performance part that has been completed so far in the whole contract period. This part of thecontract does not meet the performance obligation conditions within a certain period of time, and the Group takes it asthe performance obligation at a certain point of time. The Group generally recognizes the revenue at the time point ofcontrol transfer of relevant port machinery and equipment, heavy equipment and steel structure products on the basis ofcomprehensive consideration of the following factors: the current right to receive payment of goods, the transfer of main risksand 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 andthe manufacturing contracts on some steel structure products, the Group has the right to collect money for the performancepart that has been completed so far during the whole contract period. The Group takes it as the performance obligation toperform in a certain period of time, and recognizes the revenue according to the performance progress. Based on inputmethod, the Group determines the corresponding performance progress of large-sized port equipment and heavy equipmentcontracts according to the proportion of the cost incurred in the total estimated cost. By output method, the Group determinesthe performance progress of the steel structure manufacturing contract according to the proportion of the accumulatedprocessing tons to the estimated total processing tons.Contracts on rendering of shipping and lifting servicesThe service contracts between the Group and its customers mainly involve special shipping services and hoistingservices. The revenue of special shipping services rendered by the Group is recognized by time period method, and theprogress of performance obligations is determined according to the proportion of the number of days transported in the totalestimated days of transportation. The revenue of shipping service shall be recognized when the service is completed.Material sales contractThe material sales contract between the Group and customers usually only includes the performance obligation oftransferring spare parts and other materials. The Group generally recognizes the revenue at the time of control transfer ofrelevant spare parts and other materials on the basis of comprehensive consideration of the following factors: the currentright to receive payment of goods, the transfer of main risks and rewards in the ownership of goods, the transfer of legalownership of goods, the transfer of physical assets of goods, and the acceptance of the goods by customers.Rendering of building servicesThe building service contract between the Group and customers usually includes the performance obligation ofinfrastructure construction. As the customer can control the assets under construction during the performance by the Group,the Group takes them as the performance obligations within a certain period of time, and recognizes the revenue accordingto 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 progresscannot be reasonably determined and the cost incurred by the Group is expected to be compensated, the revenue shall berecognized 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 theGroup, during the building period, the revenue of construction service contracts is recognized in accordance with the aboveaccounting 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 e?ective interest rate method and the amortizedcost, and o?set upon receipt of payment of the project owner.PPP project contractPPP project contract refers to the contract concluded between the Group and the government party on PPP projectcooperation in accordance with laws and regulations, which also meets the following characteristics (hereinafter referred toas “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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2022Activities under the PPP contracts usually include construction, operation and transfer. During the building period, theGroup determines whether the Group is the principal responsible person or the agent in accordance with the accountingpolicy of the principal responsible person/agent below. If the Group is the principal responsible person, contract revenue fromconstruction services and contract assets are recognized accordingly, and the revenue of construction contract is measuredat the fair value of the consideration received or receivable. During the operating phase, the Group carries out accountingtreatment as follows accordingly:
(1) Pursuant to the contractual provisions of the PPP project, during the project operation, if the conditions for collection
of the cash (or other nancial assets) of a denite amount can be met, the amount of consideration of relevant PPP projectassets or the recognized amount of construction revenue is recognized as contract assets until the Group has the right toreceive the consideration (which depends only on the passage of time). When the Company has the right to collect suchconsideration (which depends only on the passage of time), the amount of consideration of relevant PPP project assetsor the recognized amount of construction revenue is recognized as accounts receivable, and subject to the accountingtreatment specied in the accounting policy for nancial instruments. When the PPP project assets reach their expectedusable conditions, the di?erence of the amount of consideration of relevant PPP project assets or the recognized amount ofconstruction revenue in excess of the cash (or other nancial assets) of a denite 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 amountis uncertain. When the PPP project assets reach their expected usable conditions, the amount of consideration of relevantPPP project assets or recognized amount of construction revenue is recognized as an intangible asset and subject to theaccounting treatment specied in the accounting policy for intangible assets above.In the operation stage, when services are provided, recognize the corresponding revenue; Daily maintenance orrepair expenses incurred shall be recognized as current expenses. Daily maintenance or repair expenses incurred shall berecognized as current expenses.The Group presents the construction expenditures incurred during the construction period of PPP projects accounted asintangible assets as cash ows from investing activities. The Group presents the construction expenditures incurred duringthe construction period of PPP projects other than those mentioned above as cash ows from operating activities.Variable considerationIf there is variable consideration in the contract, the Group shall determine the best estimate of variable considerationaccording to the expected value or the most likely amount, but the transaction price including variable consideration shallnot exceed the amount that the accumulated recognized revenue is highly unlikely to have a signicant reversal when therelevant uncertainty is eliminated. On each balance sheet date, the Group re-estimates the amount of variable considerationto be included in the transaction price.Warranty obligationsAccording to the contract and legal provisions, the Group provides quality assurance for the goods sold or the assetsbuilt. For the guarantee type quality assurance that the goods sold to customers meet the established standards, the Groupshall perform accounting treatment in accordance with Note V. For the service quality assurance for a separate serviceprovided in addition to guaranteeing that the goods sold meet the established standards, the Group shall take it as a singleperformance obligation, allocate part of the transaction price to the service quality assurance according to relative proportionof the single selling price of the goods and service quality assurance, and recognize the revenue when the customeracquires service control right. In assessing whether quality assurance provides a separate service in addition to ensuringthat 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/agentThe Group determines whether it is the principal responsible person or the agent in the transaction according to whetherit has the right to control the goods or services before transferring them to customers. In case the Group can control thegoods and other products before transferring them to customers, the Group shall be the principal responsible person andrecognize the revenue according to the total consideration received or receivable. Otherwise, the Group shall be the agentand recognize the revenue according to the amount of commission fees or handling charges that it is expected to be entitledto receive, and the amount shall be recognized according to the net amount of the total consideration received or receivableafter deducting the price payable to other relevant parties, or according to the xed commission amount or proportion.
(2) Di?erences in revenue recognition accounting policies caused by di?erent 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. Accordingto 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 asan asset as the contract acquisition cost, unless the amortization period of the asset does not exceed one year.
9898
The cost incurred by the Group in performing the contract, which is not applicable to the specification scope ofinventories, xed assets or intangible assets and meets the following conditions simultaneously, shall be recognized as anasset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), costs clearly borne by the customer and other costs incurred solely as a result of thecontract;
(2) The cost increases the enterprise’s resources for fullling its performance obligations in the future;
(3) The cost is expected to be recovered.
The Group’s assets related to contract cost are amortized on the same basis as the recognition of income related to theassets, and are included in the current prot or loss.
If the book value of the assets related to contract cost is higher than the di?erence between the following two items, theGroup will make provision for impairment of the excess part and recognize it as the loss of asset impairment:
(1) The remaining consideration expected to be obtained by the enterprise due to the transfer of goods or services
related to the assets;
(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 governmentsubsidies, and is likely to receive the government subsidies. If a government subsidy is a monetary asset, it shall bemeasured at the amount received or receivable. If a government subsidy is a non-monetary asset, it shall be measured at itsfair value; and if its fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
If the government subsidies shall be used for the construction or the generation in otherwise of the long-term assets asrequired by the government documents, they are the assets-related government subsidies; if government documents haveno relevant provisions, and such government subsidies are based on the condition of the construction or the generation inotherwise 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 onesshall be deemed as the income-related government subsidies.
Income-related government subsidies which are used to compensate for relevant costs or losses in subsequent periodswill be recognized as deferred income, and will be included in the current prot or loss or be used to write o? relevant costsin 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 lossby stages by a reasonable and systematic method within the useful lives of relevant assets. (However, the governmentsubsidies measured at nominal amounts are directly included in the current prot or loss); if the relevant assets are sold,transferred, scrapped or damaged before the end of their useful lives, the undistributed balance of relevant deferred incomeis transferred to the prot 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 di?erencebetween book value of assets and liabilities on the balance sheet date and tax base, as well as the balance between thebook value of items which have not been recognized as assets or liabilities but the tax base can be determined according tothe tax law and the tax base.
Taxable temporary di?erences are recognized as deferred income tax liabilities, except that
(1) Taxable temporary di?erences 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 nota business combination and will not a?ect accosting prots, nor a?ect the taxable income or deductible losses when thetransaction occurs.
(2) For taxable temporary di?erences related to the investments in subsidiaries, joint ventures and associates, the time
for the reversal of the taxable temporary di?erences can be controlled and the taxable temporary di?erences are likely not tobe reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax credits that can be carried forward to subsequentperiods, deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probable to beavailable against the deductible temporary di?erences, deductible losses and tax credits, unless the deductible temporarydi?erences 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 a?ect neither accounting prots nor the taxable income (or deductible losses) when occurred.
(2) For the deductible temporary di?erences 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 di?erences may be reversed in the foreseeable future and they can be used to o?set the taxable income ofdeductible temporary di?erences in the future.
9999
2022On the balance sheet date, the Company shall measure deferred income tax assets and deferred income tax liabilitiesat the applicable tax rate during the period for expected recovery of assets or settlement of liabilities and reect the impactsof the income tax by means of expected recovery of assets or settlement of liabilities on the balance sheet date.On the balance sheet date, the Group reviews the book value of deferred income-tax assets. If it is unlikely to obtainsu?cient taxable income to o?set the benet of the deferred income-tax assets, the book value of the deferred income-taxassets 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 su?cient taxable income for all or partof the deferred income tax assets to be reversed.Deferred income tax assets and deferred income tax liabilities meeting the following conditions simultaneously will bepresented by net amount after o?set: when the Company has the statutory right to balance current income tax assets andcurrent income tax liabilities with net amounts, and deferred income tax assets and deferred income tax liabilities are relatedto the income tax which are imposed on the same taxpayer by the same tax collection authority or on di?erent taxpayers,but, in each important future period in connection with the reversal of deferred income tax assets and liabilities, the involvedtaxpayer intends to settle the current income tax assets and liabilities on a net amount basis, or obtain assets at the time ofdischarging liabilities.42 Lease
(1) Accounting treatment methods of operating lease
□Applicable √Not applicable
(2) Accounting treatment methods of nance 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, ifone party transfers the right to control the use of one or more identied assets for a certain period of time in exchange forconsideration, such contract is, or contains, a lease.
As the lessee
Except for Short-term lease and low-value asset lease, the Group recognizes right of use assets and lease liabilities forleases, 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 andexcluding the purchase option as a short-term lease; a lease with the value of no more than RMB 50,000 when a singleleased asset is a new asset is recognized as a low-value asset lease. Where the Group subleases or expects to sublease aleased 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 assetcosts or current prots or losses are recognized on a straight-line basis for each period.
As a lessor
A lease is classied as a nance lease whenever the terms of the lease transfer substantially all the risks and rewards ofasset ownership to the lessee on the commencement date. All leases other than nancial leases are classied as operatingleases.
As a lessor of operating lease
Rental income from the operating lease in each stage during the lease term should be recognized as the current protor loss by the straight-line method, and the variable lease payments not included in the lease receipts are recognized inprot or loss when they are actually incurred. Initial direct costs are capitalized and amortized over the lease term on thesame basis as the recognition of rental income, and are included in current prot or loss.
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 obtainedupon leaseback, and only recognize relevant prot or loss for the right transferred to the lessor. Where asset transfer underleaseback transactions is not a sale, as the lessee, the Group shall continue to recognize the transferred assets whilerecognizing a nancial liability equal to the transfer income, and shall carry out accounting treatment for such nancial liabilityaccording to Note V.
43 Other accounting policies and accounting estimates
√Applicable □Not applicable
Prot distribution
The Company's cash dividends are recognized as liabilities after approval at the general meeting.
100100
Work safety expensesThe Company withdraws the work safety expenses according to provisions, includes them in the cost of related productsor the current profit or loss, and includes them in special reserves at the same time. The costs are handled separatelydepending on whether they form fixed assets: when withdrawn work safety expenses are used within the prescribedrange and belong to expenses, such costs shall be directly deducted from special reserves; where a xed asset is formed,the expenses incurred through collection are recognized as the xed asset when it is ready for its intended use, and theequivalent special reserve is written o? and the equivalent accumulated depreciation is conrmed.Fair value measurementThe Group measures the derivative nancial instruments and equity instrument investment at fair value on each balancesheet date. Fair value is the price received from sales of an asset or paid for transfer of a liability by a market participant inan 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 themeasurement result of fair value shall subject to the lowest level which the input having great significance to the entiremeasurement of fair value belongs to: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identical assetsor liabilities available on the measurement date; Level 2 inputs refer to inputs that are directly or indirectly observable for theassets 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 andrecognized in the nancial statements in order to determine whether there is a conversion among the levels of fair valuemeasurement.Signicant accounting judgment and estimateThe preparation of financial statements requires the management to make judgments, estimates and assumptions.These judgments, estimates and assumptions will a?ect the reported amounts and disclosures of income, expenses, assetsand liabilities, and the disclosure of contingent liabilities on the balance sheet date. The results from the uncertainties ofthese assumptions and estimates may lead to signicant adjustments to the book amount of assets or liabilities that area?ected in the future.JudgmentDetermination of the performance progress of construction contracts (only applicable to transfer of control over a periodof time)The Group determines the performance progress of the construction contracts by input method. To be more specic,the Group determines the performance progress according to the proportion of the cumulative actual construction costto the estimated total cost, while the cumulative actual cost includes the direct cost and indirect cost in the process oftransferring goods to customers. The Group believes that the construction contract price with customers is determined onthe basis of construction cost, and the proportion of the actual construction cost to the estimated total cost can truly reectthe performance progress of construction services. In view of the long duration of construction contracts, which may spanseveral accounting periods, the Group will recheck and revise the budget with the progress of the construction contracts, andadjust the amount of revenue recognized accordingly.Uncertainty of estimationThe following are other key sources of the uncertainty of the key assumptions and estimates in the future on the balancesheet date, which may lead to major adjustments in the book value of the assets and liabilities of next scal year.Impairment of nancial instruments and contract assetsThe Group adopts the expected credit loss model to assess the impairment of financial instruments and contractassets. The application of the expected credit loss model requires signicant judgments and estimates. It must considerall reasonable and evidence-based information, including forward-looking information. In making such judgments andestimates, the Group infers expected changes in debtors' credit risk based on historical repayment data combined witheconomic policies, macroeconomic indicators, industry risks and other factors. Di?erent estimates may a?ect the provisionfor impairment, and the amount of impairment that has been provided may be not equal to the actual amount of futureimpairment losses.Inventory depreciation reservesThe management shall estimate the net realizable value of inventories in time so as to estimate the provision fordepreciation of inventories. If any event or circumstance changes, it is necessary to use the estimate to make the provisionfor depreciation of inventories if the inventory is not likely to realize the relevant value. If the expected amount is di?erentfrom the original estimate, the relevant di?erence will a?ect the book value of the inventories and the impairment loss duringthe estimated change.
Impairment of non-current assets other than nancial assets (other than goodwill)On the balance sheet date, the Group judges whether there are any signs of possible impairment of non-currentassets other than nancial assets. Non-current assets other than nancial assets are tested for impairment when there isan indication showing that their book amounts are irrecoverable. When the book value of an asset or asset group is higherthan the recoverable amount, that is, the higher of the net amount from fair value less the disposal expense and the presentvalue of the estimated future cash ow, it indicates that the impairment occurred. The net amount after the fair value minusthe disposal expenses is determined by reference to the sales agreement price of similar assets in the fair trade or theobservable market price, minus the incremental cost directly attributable to the disposal of the asset. When estimating the
101101
2022present value of future cash ows, management must estimate the expected future cash ows of the asset or asset groupand select an appropriate discount rate to determine the present value of future cash ows.
Impairment of goodwillThe Group tests whether the goodwill is impaired at least annually. This requires an estimate of the present value ofthe future cash ows of the asset group or combination of asset groups to which goodwill is allocated. When estimatingthe present value of future cash flows, the Group needs to estimate the cash flow generated by future asset groups orcombination of asset groups, and select the appropriate discount rate to determine the present value of future cash ows.See Note VII for details.
Fair value of unlisted equity investmentsThe Group uses the market approach to determine the fair value of unlisted equity investments. This requires the Groupto identify comparable listed companies, select market multipliers, estimate liquidity discounts, etc. and is therefore subject touncertainty. The fair value of unlisted equity investments is determined based on the estimated future cash ows discountedat the current discount rate for other nancial instruments with similar contract terms and risk characteristics. This requiresthe Group to estimate the expected future cash flow, credit risk, fluctuation and discount rate; therefore, there is someuncertainty.44 Changes in signicant accounting policies and accounting estimates
(1) Changes in signicant 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 nancial statements at the beginning of the year of rst-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 taxBasis of tax computationTax rate
VAT
VAT is applicable to thesales of the Group’sproducts
The taxable income from the sales of the products in domestic market is subjectto the output tax as per 13%; the products for export adopt the method of “taxexemption, tax deduction and tax reimbursement” and the applicable tax rate is13%. The Group’s income from the marine transport is applicable to VAT, andthe output tax is calculated as per 9%; the income from leasing of the equipmentis applicable to VAT and the output tax is calculated as per 13% of the taxableincome; the income from the sales of the equipment is applicable to the simplecollection 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 simplecollection measures of VAT and the tax rate is 5%; the item “B-T” is applicableto VAT and the output tax on the taxable income is collected at 9%. The aboveoutput tax shall calculate and pay VAT after deducting the amount of input taxdeductible, except for the applicable VAT’s simple collection method.Consumption tax//Sales tax//Urban maintenanceand construction tax
VAT paid
Calculated and paid according to 7% and 3% of the actual turnover tax paidrespectively.Enterprise income tax
The enterprise incometax is calculated and paidin accordance with theEnterprise Income Tax Lawof People’s Republic ofChina (hereinafter referredto as the “Income Tax Law”).
The group was awarded a new High-tech Enterprise Certificate (CertificateNumber: GR202031006909) in December 2020 after reexamination, with the validterm of 3 years. The Company actually applied the enterprise income tax rate of15% this year (2021: 15%).
102102
Where there are taxpayers with di?erent enterprise income tax rates, the disclosure shall be stated
√Applicable □Not applicable
Name of taxpayerIncome tax rate (%)The Company15%Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd.15%Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd.16.50%Shanghai Zhenhua Shipping Co., Ltd25%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., Ltd25%ZPMC Machinery Equipment Services Co., Ltd.25%Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd.25%Shanghai Port Machinery Heavy Industry Co., Ltd25%ZPMC Zhangjiagang Port Machinery Co., Ltd.25%ZPMC Qidong Marine Engineering Co., Ltd.25%Jiahua Shipping Co., Ltd.16.50%Zhenhua Pufeng Wind Energy (HongKong) Co., Ltd.16.50%Nanjing Ninggao New Channel Construction Co., Ltd25%CCCC Investment & Development Qidong Co., Ltd.25%CCCC Liyang Urban Investment and Construction Co., Ltd.25%CCCC (Huaian) Construction Development Co., Ltd.25%CCCC Zhenjiang Investment Construction Management Development Co., Ltd.25%CCCC Rudong Construction Development Co., Ltd.25%ZPMC Netherlands Co?peratie U.A.25.80%ZPMC Netherlands B.V.25.80%Verspannen B.V.25.80%ZPMC Espana S.L.25%ZPMC Italia S.r.l.24%ZPMC GmbH Hamburg32.25%ZPMC Lanka Company (Private) Limited24%/30%ZPMC North America Inc.31%ZPMC Korea Co., Ltd.20%ZPMC Engineering Africa (Pty) Ltd.28%ZPMC Engineering (India) Private Limited25.17%ZPMC Southeast Asia Holding Pte. Ltd.17%ZPMC Engineering (Malaysia) Sdn. Bhd.24%ZPMC Australia Company (Pty) Ltd.30%ZPMC Brazil Servi?o Portuários LTDA25%ZPMC Limited Liability Company20%ZPMC NA East Coast lnc. 28%ZPMC Middle East FZE0%ZPMC UK LD19%Greenland Heavylift (Hong Kong) Limited16.50%GPO Grace Limited0%GPO Amethyst Limited0%GPO Sapphire Limited0%GPO Emerald Limited0%GPO Heavylift Limited0%
103103
2022
Name of taxpayerIncome tax rate (%)GPO Heavylift AS0%GPO Heavylift Pte Ltd17%ZPMC Latin America Holding Corporation5%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 O?shore 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-techEnterprise Certicate” (No. GR202232002981) after reexamination in October 2022, with the valid term of 3 years. ShanghaiZhenhua Port Machinery Heavy Industries Co., Ltd. won the “Hi-tech Enterprise Certicate” (No. GR202231000204) afterreexamination in December 2022, with the valid term of 3 years. Shanghai Zhenhua Heavy Industries Electric Co., Ltd wonthe “Hi-tech Enterprise Certicate” (No.: GR202031001911) after reexamination in November 2020, with the valid term of 3years. In accordance with relevant provisions in Article 28 of the Income Tax Law, the actually applicable enterprise incometax 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 nancial statements
1 Monetary funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022December 31, 2021Cash on hand1,027,476851,261Bank deposits2,374,073,9614,448,986,616Other monetary funds21,946,276121,999,707Total2,397,047,7134,571,837,584Including: total amount of overseas deposits1,253,939,219677,986,642Deposits with nance companies
Other descriptionAs at December 31, 2022, the other monetary funds, including the restricted deposit of RMB 21,946,276 (as atDecember 31, 2021: RMB 121,999,707), were the money appropriated that was collected from the overseas projects anddeposited in the overseas regulatory accounts and the cash deposit deposited for application to the bank for the letter ofcredit 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 iscalculated as per the interest rate of the current deposits.
104104
2 Held-for-trading nancial assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Financial assets measured at fair value throughthe current prot or loss
877,483,3421,153,533,922Including:
Derivative nancial assets – equity options (i)8,438,2788,438,278Investments in shares of listed companies (ii)869,045,0641,145,095,644Financial assets designated to be measured atfair value through the current prot or lossIncluding:
Total877,483,3421,153,533,922Other description:
√Applicable □Not applicable
(i) As at December 31, 2022, the held-for-trading nancial assets- derivative nancial assets – equity options held bythe Group refers to the fair value of the right obtained at the time of acquiring Greenland Heavylift (Hong Kong) Limited topurchase 1% of its equity of at the price of USD 1.(ii) As at December 31, 2022, the listed company share investments held by the Group include 5.30% equity of JiangxiHuawu Brake Co., Ltd., 1.59% equity of Qingdao Port International Co., Ltd., 1.16% equity of CRSC, 0.02% equity ofCOSCO Shipping Holdings Co., Ltd. and 0.001% equity of Shenwan Hongyuan Group Co., Ltd.3 Derivative nancial assets
□Applicable √Not applicable
4 Notes receivable
(1) Presentation of notes receivable by category
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022December 31, 2021Bank acceptance billCommercial acceptance bill56,114,6573,979,800Total56,114,6573,979,800
(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 otherreceivables for disclosure:
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
105105
2022
(7) Notes receivable actually written o? 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
AgingDecember 31, 2022Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year4,719,933,4601- 2 years856,147,8522- 3 years1,917,825,421Over 3 years3- 4 years673,336,0294- 5 years176,228,829Over 5 years1,167,076,085Total9,510,547,676
(2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Category
December 31, 2022Book balanceProvision for bad debts
Book valueAmount
Proportion(%)
Amount
Proportion ofprovision (%)Provision for bad debts accrued onan individual basis
896,540,1369825,285,3909271,254,746Including:
Provision for bad debts by portfolio8,614,007,540911,491,612,431177,122,395,109IncludingTotal9,510,547,676/2,316,897,821/7,193,649,855
Category
December 31, 2021Book balanceProvision for bad debts
Book valueAmount
Proportion(%)
Amount
Proportion ofprovision (%)Provision for bad debts accrued onan individual basis
898,273,31411655,457,49573242,815,819Including:
Provision for bad debts by portfolio7,579,394,793891,373,359,856186,206,034,937IncludingTotal8,477,668,107/2,028,817,351/6,448,850,756
106106
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNYName
December 31, 2022Book balance
Provision for baddebts
Proportion ofprovision (%)
Reason for provisionAccounts receivable 1475,031,639403,776,89385Counterparty nancial shortageAccounts receivable 2173,768,233173,768,233100Contract disputeAccounts receivable 393,954,00093,954,000100Counterparty nancial shortageAccounts receivable 451,028,80051,028,800100Contract disputeAccounts receivable 543,053,94643,053,946100Contract disputeAccounts receivable 627,858,47027,858,470100Contract disputeAccounts receivable 710,208,91610,208,916100Contract disputeAccounts receivable 87,450,7647,450,764100Contract disputeAccounts receivable 97,495,0887,495,088100Contract disputeAccounts receivable 102,220,3142,220,314100Contract disputeAccounts receivable 113,576,1783,576,178100Contract disputeAccounts receivable 12893,788893,788100Contract disputeTotal896,540,136825,285,39092/
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 creditloss ratio %
Reason for provisionAccounts receivable 1485,631,638242,815,81950Counterparty nancial shortageAccounts receivable 2169,011,372169,011,372100Contract disputeAccounts receivable 393,954,00093,954,000100Counterparty nancial shortageAccounts receivable 451,028,80051,028,800100Contract disputeAccounts receivable 542,979,94742,979,947100Contract disputeAccounts receivable 625,502,86425,502,864100Contract disputeAccounts receivable 79,929,4509,929,450100Contract disputeAccounts receivable 87,289,9127,289,912100Contract disputeAccounts receivable 96,820,7566,820,756100Contract disputeAccounts receivable 103,273,7903,273,790100Contract disputeAccounts receivable 112,032,5722,032,572100Contract disputeAccounts receivable 12818,213818,213100Contract dispute
898,273,314655,457,495
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 otherreceivables for disclosure:
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
The recovered or reversed provision for bad debts with signicant amount:
□Applicable √Not applicable
107107
2022
(4) Accounts receivable actually written o? 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 nancial 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 PlanSeries 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 shelfscale of RMB 2 billion, with an initial issue size of RMB 1 billion. In 2022, the book balance of the derecognized accountsreceivable was RMB 837,502,837 and the book balance of contract assets was RMB 182,227,057 (2021: nil), and a loss ofRMB 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: RMB107,145,406), which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 2,469,639,584 (asat 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, 2022Provision in 2022Recovery or reversal in 2022Write-o? in 2022December 31, 2022Year 20222,028,817,351665,296,983(343,137,208)(34,079,305)2,316,897,821Year 20211,874,771,667497,724,257(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 ofRMB19,597,098 (2021: Nil) were written o?.Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
20222021Book balanceof estimated
default
Estimatedcredit loss
ratio (%)
Expected creditloss for the entire
duration
Book balanceof estimated
default
Estimatedcredit loss
ratio (%)
Expected credit
loss for theentire durationWithin 1 year4,717,806,0434183,619,6563,681,892,7454134,291,4771-2 years856,147,85213111,990,6962,449,354,39415366,679,7512-3 years1,808,064,28226470,904,017297,376,4322574,906,5783-4 years230,551,0833887,894,312164,454,1104574,134,8114-5 years161,998,0295994,864,959160,142,00666104,945,230Over 5 years839,440,25165542,338,791826,175,10675618,402,009Total8,614,007,5401,491,612,4317,579,394,7931,373,359,856
As at December 31, 2022, top 5 accounts receivable in terms of ending balance presented by debtor summarized andanalyzed as follows:
BalanceProvision for bad debts
Proportion in total balance of
accounts receivable %Total accounts receivable of top 5 balances1,676,814,282569,678,20718
108108
As at December 31, 2021, top 5 accounts receivable in terms of ending balance presented by debtor summarized andanalyzed as follows:
BalanceProvision for bad debts
Proportion in total balance ofaccounts receivable %Total accounts receivable of top 5 balances1,521,031,649490,608,435186 Receivables nancing
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Bank acceptance bill145,939,266116,644,174Digital debt voucher of accounts receivable293,973,162128,764,086Total439,912,428245,408,260
Increase or decrease and changes in fair value of receivables nancing 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 otherreceivables 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:
20222021Amountderecognized
Amount notderecognized
Amountderecognized
Amount notderecognizedBank acceptance bill574,174,330-1,075,578,905-Digital debt voucher of accountsreceivable
39,493,607-37,987,378-Total613,667,937- 1,113,566,283-7 Advances to suppliers
(1) Presentation of advances to suppliers by account age
√Applicable □Not applicable
Unit: Yuan Currency: CNYAging
December 31, 2022December 31, 2021AmountProportion (%)AmountProportion (%)Within 1 year821,657,08286961,833,606831-2 years26,224,985372,585,74962-3 years18,112,942239,177,4394Over 3 years85,217,413985,831,0567Total951,212,4221001,159,427,850100Explanation of the reasons why the advances to suppliers with the aging over one year and a signicant amount is notsettled in time:
As at December 31, 2022, the advances to suppliers of the Company with the aging over one year was RMB129,555,340 (as at December 31, 2021: RMB 197,594,244), mainly the advances to suppliers for the procurement ofimported parts, which has not been yet settled because the purchased imported parts have not yet received.
109109
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 andanalyzed as follows:
AmountProportion in total advances to suppliers %Total advances to suppliers of top 5 balances231,947,91924
As at December 31, 2021, top 5 advances to suppliers in terms of ending balance presented by debtor summarized andanalyzed as follows:
AmountProportion in total advances to suppliers %Total advances to suppliers of top 5 balances605,483,61252
Other descriptionNoneOther description
□Applicable √Not applicable
8 Other receivablesItem presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Interest receivableDividends receivable8,000,000Other receivables987,545,297940,522,896Total995,545,297940,522,896
Other description:
□Applicable √Not applicable
Interest receivable
(1) Classication of interest receivable
□Applicable √Not applicable
(2) Signicant 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, 2022December 31, 2021Suzhou Chuanglian Electric Drive Co., Ltd.8,000,000Total8,000,000
(5) Signicant dividends receivable aging over 1 year
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
110110
Other receivables
(7) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
AgingDecember 31, 2022Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year889,793,8741-2 years107,718,6932-3 years14,649,282Over 3 years3-4 years8,519,0284-5 years43,062,407Over 5 years188,072,813Total1,251,816,097
(8) Classication by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Nature of fundsDecember 31, 2022December 31, 2021Unpaid taxes receivable385,097,393504,714,202Customs-related security deposit267,023,62661,537,519Secured repayment164,124,678164,124,678Advance payment receivable on behalf ofthe third party
89,988,184107,259,811Bid and performance bond80,063,43570,980,397Receivables from third parties65,401,70851,255,044Lease payment receivable41,353,25333,434,667Money on call for product eld service23,907,57323,460,236Sta? borrowings receivable13,446,97315,006,084Export rebates7,654,3742,332,792Equity disposal receivables62,210,484Others113,754,90084,481,123Total1,251,816,0971,180,797,037
(9) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNYProvision for bad debts
Stage IStage IIStage III
TotalExpected creditlosses over thenext 12 months
Expected credit loss forthe entire duration (nocredit impairment)
Expected credit loss forthe entire duration (creditimpairment has occurred)Balance as at January 1, 20229,509,850230,764,291240,274,141Balance as at January 1, 2022 incurrent period--Transferred to Stage II--Transferred to Stage III--Reversal to Stage II--Reversal to Stage I
111111
2022
Provision for bad debts
Stage IStage IIStage III
TotalExpected creditlosses over thenext 12 months
Expected credit loss forthe entire duration (no
credit impairment)
Expected credit loss forthe entire duration (creditimpairment has occurred)Provision in the current period23,996,65923,996,659Reversal in the current periodWrite-o? in the current periodCharge-o? in the current periodOther changesBalance as at December 31, 202233,506,509230,764,291264,270,800
Description of signicant changes in book balance of other receivables with changes in loss provision in the currentperiod
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly:
□Applicable √Not applicable
(10) Provision for bad debts
□Applicable √Not applicable
(11) Other receivables actually written o? 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: CNYNameNature
December 31,2022
Aging
Proportion in thetotal balance of otherreceivables (%)
Balance of provisionfor bad debts at theend of the yearOther receivables 1
Customs-relatedsecurity deposit
267,023,626Within 1 year21Other receivables 2Secured repayment164,124,6785-6 years13164,124,678Other receivables 3
Taxes on outstandingpayment receivable
65,462,8963-4 years523,571,255Other receivables 4Advance payment54,433,2152-6 years454,433,215Other receivables 5
Receivables fromrelated parties
29,228,919Within 1 year2Total/580,273,334/242,129,148
(13) Receivables involving government subsidies
□Applicable √Not applicable
(14) Other receivables derecognized due to transfer of nancial 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
112112
9 Inventories
(1) Classication
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
December 31, 2022December 31, 2021Book balance
Provision for inventorydepreciation/ provisionfor impairment of
contract performance
cost
Book valueBook balance
Provision for inventorydepreciation/provision forimpairment of contractperformance cost
Book valueRaw materials3,563,755,66651,313,4903,512,442,1762,904,965,37954,380,2822,850,585,097Goods in process18,402,900,715651,631,43317,751,269,28220,163,020,9101,119,442,22719,043,578,683Stock commodities20,380,32420,380,32429,428,58929,428,589Revolving materialsConsumptive biologicalassetsContract performancecost
229,287,566229,287,566150,182,361150,182,361Total22,216,324,271702,944,92321,513,379,34823,247,597,2391,173,822,50922,073,774,730
(2) Provision for inventory depreciation and provision for impairment of contract performance cost
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31,
2021
Increase in the current periodDecrease in the current period
December 31,2022ProvisionOther
Reversal or write-
o?
OtherRaw materials54,380,2829,950,01013,016,80251,313,490Goods in process1,119,442,227219,787,553687,598,347651,631,433Stock commoditiesRevolving materialsConsumptive biologicalassetsContract performance costTotal1,173,822,509229,737,563700,615,149702,944,923
(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:
Specic basis for determination of net realizable
values
Reasons for provision for depreciationof inventories reversed or written-o? in
the current yearRaw materials and outsourcedparts and components
Di?erence between the net realizable value of rawmaterials and outsourced parts and components andtheir book value resulting from product price fall
Value recovery, consuming or external
salesGoods in process
Di?erence between the net realizable value and thebook value of goods in process
Value recovery, transferred for self-use or
external sales
113113
2022Total amount of possible penalties for failure to fulll the obligations as contracted:
20222021Valid letter of guarantee signed by the bank14,198,954,46712,355,828,402Letter of guarantee not signed by the bank8,124,948,7657,408,487,578
Total22,323,903,23219,764,315,980
10 Contract assets
(1) Particulars about contract assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2022December 31, 2021Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueWarranty balance recognized at the timeof control transfer (Remark 1)
649,826,26149,774,565600,051,696452,889,67654,001,996398,887,680Outstanding payments for constructioncompleted (Remark 2)
2,704,018,17060,996,7302,643,021,4401,626,265,61953,697,4491,572,568,170Total3,353,844,431110,771,2953,243,073,1362,079,155,295107,699,4451,971,455,850Remark 1: When the Group sells equipment to customers and provides relevant installation services, it constitutes asingle performance obligation. When the Group recognizes revenue at the time of fullling its performance obligations, theCompany’s unconditional (i.e., only depending on the passage of time) right to collect consideration from customers shall bepresented as receivables. The non-invoiced contract warranty balance is the right to conditionally collect the considerationfrom the customer. Therefore, the Company recognizes the non-invoiced contract receivables as contract assets, and thecontract assets will form unconditional collection right after the expiration of the warranty and will be transferred to thereceivables.Remark 2: The Group provides customers with infrastructure construction services and steel structure productmanufacturing, and recognizes revenue within a period of time to form contract assets. The contract assets will formunconditional collection right at the time of project settlement and are transferred in receivables. The customers shall settleaccounts with the Group on the performance progress of engineering construction services and the delivery of steel structureproducts under contract provisions, and pay the contract price according to the credit period specied in the contract aftersettlement. The part of the income amount recognized by the Group according to the performance progress exceeding thesettled price is recognized as contract assets, and the part of the settled price exceeding the income amount recognized bythe 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 December31, 2021: Long-term borrowings of RMB 2,397,403,882). See 45(ii) in Note VII for details.
(2) Amount of and reason for signicant 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
Item
Provision in the current
period
Reversal in thecurrent period
Write-o?/charge-o? in the
current period
ReasonWarranty balance recognized at thetime of control transfer
32,416,99917,047,33219,597,098Outstanding payments forconstruction completed
7,299,281Total39,716,28017,047,33219,597,098/
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to otherreceivables for disclosure:
□Applicable √Not applicable
114114
Other description:
√Applicable □Not applicable
The contract assets with provision for impairment loss by credit risk features portfolio are as follows:
20222021Book balanceof estimated
default
Estimatedcredit loss rate
(%)
Expected creditloss in theentire duration
Book balanceof estimateddefault
Estimatedcredit loss rate(%)
Expected creditloss in theentire durationWithin 1 year3,096,872,055268,072,0381,742,068,619356,239,1771-2 years234,347,0211636,474,555335,379,2301550,918,8912-3 years22,625,355286,224,7021,282,05127348,205Over 3 years---425,39545193,172Total3,353,844,431110,771,2952,079,155,295107,699,445
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, enteredinto a ship sales contract with a third party for the sale of a ship, under which the ownership of the ship was transferred tothe buyer upon delivery of the ship to and acceptance by the buyer in accordance with the requirements of the contract. OnDecember 31, 2021, the Group classied the ship with a net value of RMB15,167,288 as assets held for sale. The said shipwas duly delivered to and accepted by the buyer in 2022.12 Non-current assets due within one year
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem December 31, 2022December 31, 2021Debt investment due within one yearOther debt investments due within one yearLong-term receivables due within one year900,213,4111,437,034,591Total900,213,4111,437,034,591
Important debt investment and other debt investments due at the end of the period:
□Applicable √Not applicable
Other descriptionNone13 Other current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem December 31, 2022December 31, 2021Contract acquisition costReturn cost receivableInput tax to be deducted261,819,250346,871,563Prepaid income tax17,248,09112,933,785Total279,067,341359,805,348
Other descriptionNone
115115
202214 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 ofnancial instruments has increased signicantly
□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 ofnancial instruments has increased signicantly
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
16 Long-term receivables
(1) Long-term receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
December 31, 2022December 31, 2021
Discountrate rangeBook balance
Provisionfor bad
debt
Book valueBook balance
Provisionfor bad debt
Book valueFinancing leaseIncluding: Unrealized nancingincomeGoods sold on installmentServices provided on installmentReceivables from “Building –Transfer” project- Principal3,057,984,5033,057,984,5033,954,505,5773,954,505,577- Interest receivable244,494,473244,494,473156,936,397156,936,397Less: Long-term receivables duewithin one year
900,213,411900,213,4111,437,034,5911,437,034,591Total2,402,265,5652,402,265,5652,674,407,3832,674,407,383/
(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 ofnancial instruments has increased signicantly
□Applicable √Not applicable
(3) Long-term receivables derecognized due to transfer of nancial assets
□Applicable √Not applicable
116116
(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 wasthe principal invested in above “Building – Transfer” project by the Group, and the amount of interest receivable was thenancing return recognized based on the contract.As at December 31, 2022, the long-term accounts receivable was RMB 2,212,190,758 (as at December 31, 2021: RMB2,177,499,634), which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 2,469,639,584 (asat December 31, 2021: Long-term borrowings of RMB 2,397,403,882).Aging analysis of long-term receivable is as follows:
Item20222021Within 1 year524,957,024872,444,8101-2 years489,642,736290,550,5192-3 years198,310,855606,243,813Over 3 years2,089,568,3612,342,202,832Sub-total3,302,478,9764,111,441,974Less: Long-term receivables due within one year900,213,4111,437,034,591Total2,402,265,5652,674,407,38317 Long-term equity investments
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Invested entity
December 31,
2021
Increase/decrease in the current period
December 31,2022
Provision forimpairment atthe end of theyear
Furtherinvestment
Reducedinvestment
Prot or losson investmentsunder theequity method
Adjustmentof othercomprehensiveincome
Changes inother equity
Dividends orprot declaredto be distributed
Provision forimpairment
OtherI. Joint venturesJiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
323,033,68176,902,400-35,000,000364,936,081ZPMC Mediterranean LimanMakinalari Ticaret Anonim Sirketi
396,692396,692ZPMC-OTL MARINECONTRACTOR LIMITEDZhenhua Marine Energy (HK)Co., Ltd. (i)Cranetech Global Sdn. Bhd.632,180632,180Sub-total324,062,55376,902,400-35,000,000365,964,953II. AssociatesCCCC Financial Leasing Co.,Ltd (i)
608,658,40065,045,550625,583674,329,533CCCC Yancheng ConstructionDevelopment Co., Ltd.
418,516,242-418,516,242CCCC Estate Yixing Co., Ltd. 192,917,08313,878,398206,795,481CCCC South AmericanRegional Company SARL
167,286,61311,622,93315,481,457194,391,003China communicationsConstruction USA Inc.
55,146,147197,8654,636,85359,980,865CCCC PhotovoltaicTechnology Co., Ltd (iii)
34,765,69354,07034,819,763ZPMC Changzhou CoatingsCo., Ltd.
19,048,5803,299,000-4,588,10717,759,473Suzhou Chuanglian ElectricDrive Co., Ltd.
21,483,398-851,032-8,000,00012,632,366CCCC Xiongan UrbanConstruction DevelopmentCo., Ltd. (ii)
7,512,97127,3627,540,333Shanghai Ocean EngineeringEquipment ManufacturingInnovation Center Co., Ltd.
5,820,675-312,6645,508,011
117117
2022
Invested entity
December 31,
2021
Increase/decrease in the current period
December 31,2022
Provision forimpairment atthe end of the
yearFurtherinvestment
Reducedinvestment
Prot or losson investmentsunder theequity method
Adjustmentof othercomprehensiveincome
Changes inother equity
Dividends orprot declaredto be distributed
Provision forimpairment
OtherZPMC Southeast Asia Pte. Ltd2,678,3971,392,4384,070,835Shanghai Xingyi ConstructionTechnology Co., Ltd.
1,478,368-907,301571,067CCCC Marine Engineering &Technology Research CenterCo., Ltd.
17,111,832-17,165,75853,926Sub-total1,517,658,70634,765,693-17,165,75893,500,54520,743,893-12,588,1071,636,914,972Total1,841,721,25934,765,693-17,165,758170,402,94520,743,893-47,588,1072,002,879,925
Other descriptionJoint 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 Companycontributed USD 3,044,699 with the shareholding ratio of 51%. Zhenhua Marine Energy focused on the vessel transportationbusiness. Based on the regulations of the shareholder agreement, the important events of such company shall be agreedby at least 75% shareholders via voting. Hence, the Group has no control right but jointly controls Zhenhua Marine Energytogether with the partner.Associates:
(i) On December 31, 2021, the Company transferred its 21% equity in CCCC Financial Leasing Co., Ltd to CCCCCapital Holdings Co., Ltd. by way of non-disclosure agreement. Both parties have agreed that the transition period of theaforesaid equity transfer is from July 1, 2021 to December 31, 2021, the prot or loss of the aforesaid equity during thetransition period was determined based on the audited financial statements on June 30, 2021 and the audited financialstatements of 2021 of CCCC Financial Leasing Co., Ltd., and the prot or loss of the target equity during the transition periodshall be enjoyed or borne by the Company. According to relevant provisions of the Articles of Association, after the equitysale, the Company has the right to appoint one director to it, and can exert signicant inuence 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 of15%. The company was mainly engaged in the engineering construction. According to relevant provisions of the Articles ofAssociation, the Company has the right to appoint one director to CCCC Xiongan Urban Construction Development Co., Ltd,and can exert signicant inuence on the company.
(iii) On November 28, 2022, the Company invested to establish CCCC Photovoltaic Technology Co., Ltd. The registeredcapital was RMB 200,000,000. The Company contributed RMB 60,000,000 with the shareholding ratio of 30%. Thecompany was mainly engaged in photovoltaic power generation business. According to relevant provisions of the Articles ofAssociation, the Company has the right to appoint one director to CCCC Photovoltaic Technology Co., Ltd, and can exertsignicant inuence on the company.18 Other equity instrument investment
(1) Particulars about other equity instrument investment
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Hunan Fengri Power & Electric Co., Ltd.30,657,86227,201,190CCCC Highway Bridges National Engineering Research Centre Co., Ltd.22,151,67020,644,018CCCC National Engineering Research Center of Dredging Technologyand Equipment Co., Ltd.
8,938,1708,673,049Ningbo Weilong Port Machinery Co., Ltd.5,825,1952,809,856Shenyang Weichen Crane Equipment Co., Ltd.5,205,3006,003,344ZPMC Longchang Lifting Equipment Co., Ltd.697,422948,58821st Century Science and Technology Investment Co., Ltd.Total73,475,61966,280,045
118118
(2) Equity instrument investment not held for trading
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Dividendincomerecognizedin thecurrentperiod
Accumulatedgains
Accumulatedlosses
Amountof othercomprehensiveincometransferredto retainedearnings
Reasons for nancial
assets designatedto be measured atfair value throughother comprehensiveincome
Reasons fortransferring
othercomprehensiveincome intoretainedearningsHunan Fengri Power &Electric Co., Ltd.
335,79010,659,702
Strategic investment,long-term holdingCCCC Highway BridgesNational EngineeringResearch Centre Co., Ltd.
9,151,670
Strategic investment,long-term holdingCCCC NationalEngineering ResearchCenter of DredgingTechnology andEquipment Co., Ltd.
2,538,170
Strategic investment,long-term holdingNingbo Weilong PortMachinery Co., Ltd.
4,529,195
Strategic investment,long-term holdingShenyang Weichen CraneEquipment Co., Ltd.
3,705,300
Strategic investment,long-term holdingZPMC Longchang LiftingEquipment Co., Ltd.
102,578
Strategic investment,long-term holding21st Century Science andTechnology InvestmentCo., Ltd.
30,000,000
Strategic investment,long-term holding
Other description:
□Applicable √Not applicable
19 Other non-current nancial 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
Item
Buildings andconstructions
Land use right
Construction inprogress
TotalI. Original book value
1. Balance as at December 31, 2021555,622,992209,845,794765,468,786
2. Increase in current period
(1) Outsourcing
(2) Transfer-in of inventories, xed assets and
construction in progress
(3) Increase in business combination
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2022555,622,992209,845,794765,468,786
119119
2022Item
Buildings andconstructions
Land use right
Construction inprogress
TotalII. Accumulative depreciation and amortization
1. Balance as at December 31, 2021227,466,74376,924,626304,391,369
2. Increase in current period18,229,9255,353,35723,583,282
(1) Provision or amortization18,229,9255,353,35723,583,282
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2022245,696,66882,277,983327,974,651III. 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 period309,926,324127,567,811437,494,135
2. Book value at the beginning of the period328,156,249132,921,168461,077,417
(2) Investment property without certicate of title
□Applicable √Not applicable
Other description
□Applicable √Not applicable
21 Fixed assetsItem presentation
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Fixed assets
(1) Particulars about xed assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Buildings andconstructions
Machineryequipment
O?ce andelectronicequipment
Transportation
facilities(Excluding ship)
ShipTotalI. Original book value
1. Balance as at December 31, 202111,154,426,5796,995,874,311290,629,437240,705,60815,660,479,41134,342,115,346
2. Increase in current period202,463,593234,327,84670,057,00815,199,8971,361,394,4201,883,442,764
(1) Purchase7,973,19680,275,91369,606,41214,640,0932,413,394174,909,008
(2) Transfer-in of construction in progress194,490,397150,311,959-559,8041,079,194,0001,424,556,160
(3) Increase in business combination
(4) Exchange rate changes3,739,974450,596279,787,026283,977,596
3. Decrease in current period5,556,18160,422,4915,976,41813,598,48185,553,571
(1) Disposal or scrap5,556,18160,422,4915,976,41813,598,48185,553,571
4. Balance as at December 31, 202211,351,333,9917,169,779,666354,710,027242,307,02417,021,873,83136,140,004,539
120120
Item
Buildings andconstructions
Machineryequipment
O?ce andelectronicequipment
Transportationfacilities(Excluding ship)
ShipTotalII. Accumulated depreciation
1. Balance as at December 31, 20214,605,387,4635,446,925,688229,204,742169,891,7233,872,160,99314,323,570,609
2. Increase in current period368,392,707218,410,62721,029,6599,832,936587,786,3521,205,452,281
(1) Provision368,392,707215,739,14120,853,2619,832,936534,614,3571,149,432,402
(2) Exchange rate changes2,671,486176,39853,171,99556,019,879
3. Decrease in current period2,700,01631,823,7414,009,14513,598,47952,131,381
(1) Disposal or scrap2,700,01631,823,7414,009,14513,598,47952,131,381
4. Balance as at December 31, 20224,971,080,1545,633,512,574246,225,256166,126,1804,459,947,34515,476,891,509III. 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 period6,380,253,8371,536,267,092108,484,77176,180,84412,561,926,48620,663,113,030
2. Book value at the beginning of the
period
6,549,039,1161,548,948,62361,424,69570,813,88511,788,318,41820,018,544,737
(2) Temporary idle xed assets
□Applicable √Not applicable
(3) Fixed assets acquired under nance leases
□Applicable √Not applicable
(4) Fixed assets leased out through operating lease
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemBook value at the end of the periodVessel3,191,261,227
(5) Fixed assets without certicate of title
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemBook valueReasons for pending certicate of titleBuildings and constructions581,845,146Related procedures are still in processOther description:
√Applicable □Not applicable
As at December 31, 2022, the following xed assets were taken as loan mortgage:
Original priceBook value
BorrowingsNatureAmountVessel2,784,670,6902,463,807,041Long-term payables1,658,661,470As at December 31, 2021, the following xed assets were taken as loan mortgage:
Original priceBook value
BorrowingsNatureAmountVessel4,593,927,3804,025,131,400Long-term payables1,778,490,134
121121
2022As at December 31, 2022 and December 31, 2021, the book values of xed assets for operating lease were as follows:
20222021Vessel3,191,261,2273,309,462,732
As at December 31, 2022, the xed assets with pending certicate of title were as follows:
Book valueReasons for pending certicate of titleBuildings and constructions581,845,146Related procedures are still in processLiquidation of xed 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
Project
December 31, 2022December 31, 2021Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueLarge machinery and engineering equipment of the baseunder construction
4,541,537,2854,541,537,2854,238,346,3674,238,346,367Infrastructure construction of Nantong Base145,778,657145,778,657187,156,060187,156,060Infrastructure construction of Changxing Base127,496,938127,496,938115,015,195115,015,195Large mechanical reconstruction and upgrading project23,250,60823,250,608144,563,874144,563,874Infrastructure construction of Nanhui Base750,564750,5646,700,5046,700,504Total4,838,814,0524,838,814,0524,691,782,0004,691,782,000
(2) Changes of major construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNYProjectBudget
December 31,
2021
Increase in thecurrent period
Amounttransferredinto xedassets inthe current
period
Otherdecreases inthe current
period
December31, 2022
Proportion ofcumulative
projectinvestment in
budget (%)
Construction
progress
Cumulativeamount of
interestcapitalized
Including:
capitalizationof the interestin the currentperiod
Capitalization ratefor the interest inthe current period(%)
Fund sourceInfrastructureconstruction ofNantong Base
7,980,746,771187,156,06222,756,47664,133,879145,778,6598585
Self-owned
fundsInfrastructureconstruction ofChangxing Base
9,109,560,500115,015,19515,132,2682,650,525127,496,938808023,531,836
Self-ownedfunds and bank
borrowingsLarge machineryand engineeringequipment ofthe base underconstruction
10,573,653,3904,238,346,364401,940,39998,749,4814,541,537,2828585321,439,69235,127,0732.53
Self-ownedfunds and bank
borrowingsInfrastructureconstruction ofNanhui Base
562,287,4256,700,50510,722,62616,672,566750,5658888
Self-owned
fundsLarge mechanicalreconstruction andupgrading project
1,879,876,710144,563,87441,842,444163,155,71023,250,6085151
Self-owned
fundsTotal30,106,124,7964,691,782,000492,394,213345,362,1614,838,814,052//344,971,52835,127,073//
122122
(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: CNYItem
Buildings andconstructions
Other equipmentTotalI. Original book value
1. Balance as at December 31, 202115,473,3663,619,84619,093,212
2. Increase in current period15,862,16915,862,169
(1) Provision15,862,16915,862,169
3. Decrease in current period
4. Balance as at December 31, 202231,335,5353,619,84634,955,381II. Accumulated depreciation
1. Balance as at December 31, 20219,893,7981,547,16411,440,962
2. Increase in current period10,136,8961,446,07211,582,968
(1) Provision10,136,8961,446,07211,582,968
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 202220,030,6942,993,23623,023,930III. 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 period11,304,841626,61011,931,451
2. Book value at the beginning of the period5,579,5682,072,6827,652,250
Other description:
None
123123
202226 Intangible assets
(1) Particulars about intangible assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Land use
right
Software usefee
Nonproprietarytechnology
PPP projectcontract assets(Remark 1)
TotalI. Original book value
1. Balance as at December 31, 20214,200,351,59697,454,43865,296,171144,091,3424,507,193,547
2. Increase in current period8,286,9007,325,058231,051,461246,663,419
(1) Purchase8,286,9007,325,058231,051,461246,663,419
(2) Internal R & D
(3) Increase in business combination
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 20224,208,638,496104,779,49665,296,171375,142,8034,753,856,966II. Accumulated amortization
1. Balance as at December 31, 2021976,840,55664,723,92865,201,8071,106,766,291
2. Increase in current period86,065,4287,187,47693,252,904
(1) Provision86,065,4287,187,47693,252,904
3. Decrease in current period
(1) Disposal
4. Balance as at December 31, 20221,062,905,98471,911,40465,201,8071,200,019,195III. 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 period3,145,732,51232,868,09294,364375,142,8033,553,837,771
2. Book value at the beginning of the period3,223,511,04032,730,51094,364144,091,3423,400,427,256Remark 1: This item represents the portion that recognizes the consideration amount or the recognized constructionrevenue amount of relevant PPP project assets as intangible assets in accordance with the requirements of “Interpretation ofAccounting Standards for Business Enterprises No. 14”, and the contract assets recognized during the relevant constructionperiod should be presented in the “Intangible assets” item in the balance sheet. As of December 31, 2022, the Group hastwo PPP projects under the intangible asset model, both of which are under construction. The total investment of the projectis 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 intangibleassets is 0.
(2) Land use right without certicate of title
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
124124
27 Development expenditures
□Applicable √Not applicable
28 Goodwill
(1) Original book value of goodwill
√Applicable □Not applicable
Unit: Yuan Currency: CNYName of the investedentity or the mattersforming goodwill
December 31,2021
Increase in current periodDecrease in current period
December
31, 2022Formed by business
combination
OtherDisposalOtherZPMC Qidong MarineEngineering Co., Ltd.
149,212,956149,212,956Verspannen B.V.5,412,8075,412,807Greenland Heavy lift(Hong Kong) Limited
104,012,6669,607,264113,619,930Total258,638,4299,607,264268,245,693Remark 1: The decrease in the current year was caused by the translation di?erences 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 ow, growth rate during stable period, prot rate, discount rate, forecast period, ifapplicable) 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 isconducted, the book value of goodwill is amortized to the asset group portfolio expected to benet from the synergistic e?ectof business combination.The goodwill acquired through business combination has been distributed to the following asset groups for impairmenttest:
? Heavy equipment asset group
? Semi-submerged ship transport assets group of Greenland Heavylift (Hongkong) Limited (GHHL)
Heavy equipment asset group
The recoverable amount of heavy equipment asset group is measured based on the ve-year budget approved by themanagement and shall be measured with cash ow forecast method. Cash ow over 5-year period shall be calculated basedon the estimated growth rate.
The main assumptions of the future cash ow discount method:
Growth rate during forecast period8.68%-17.08%Perpetual growth rate2.30%Gross prot rate14.53%-16.05%Pre-tax discount rate12.72%
GHHL semi-submerged ship transport assets group
The recoverable amount of GHHL semi-submerged ship transport assets group combination is determined based onthe expected future cash ow of the asset group, and the expected future cash ow is determined according to the cash owforecast based on the transport service contract revenue expected to be obtained within the service life of vessel.
125125
2022The main assumptions of the future cash ow discount method:
Number of customized short-distance and long-distance transportservice contracts expected to be obtained
5 /year/vesselVessel utilization rate of general charter party65.00%Charter rate of general charter partyUSD 60,000/dayPre-tax discount rate11.00%
The distributions of the book value of goodwill to asset groups are as follows:
Heavy equipment asset group
GHHL semi-submerged ship
transport assets group
Total202220212022202120222021Book amount of goodwill154,625,763154,625,763113,619,930104,012,666268,245,693258,638,429The perpetual growth rate adopted by management does not exceed the industry's long-term average growth rate.Based on the historical experience and the forecasts of market development, the management determines the budgetgross prot rate and adopts the pretax interest rate which can reect the specic risk of relevant asset group portfolio as thediscount 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
Item
December31, 2021
Increase in thecurrent period
Amortizationin the currentperiod
Otherdecreases
December 31,2022Improvement expenditure of xedassets under operating lease
103,664438,767132,561409,870Total 103,664438,767132,561409,870Other description:
None30 Deferred income tax assets/liabilities
(1) Deferred income tax assets before o?setting
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2022December 31, 2021Deductible temporarydi?erences
Deferred income
tax assets
Deductible temporary
di?erences
Deferred income
tax assetsProvision for impairment of assets3,091,053,227457,057,8743,204,942,163482,413,791Unrealized prots of internaltransactions
184,945,33327,741,800196,019,60029,402,940Deductible loss2,602,902,080390,435,3121,949,811,238292,471,684Estimated liabilities146,025,37821,903,807176,577,96026,486,694Wages and salaries unpaid29,183,7424,377,56129,422,8424,413,426Interest unpaid27,094,8404,064,22527,586,7584,138,014Unrealized contract gross prot81,347,55112,202,13393,383,11514,007,469Total6,162,552,151917,782,7125,677,743,676853,334,018
126126
(2) Deferred income tax liabilities before o?setting
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2022December 31, 2021Taxable temporary
di?erences
Deferred incometax liabilities
Taxable temporarydi?erences
Deferred incometax liabilitiesAsset evaluation increment from businesscombination not under common control
89,156,11313,373,41798,184,46414,727,670Changes in fair value of other debt investmentsChanges in fair value of other equity investment30,481,4594,572,21923,285,8853,492,883Changes in fair value of held-for-tradingnancial assets
217,813,73832,716,168471,149,45170,716,525Depreciation of xed assets598,916,49398,420,429411,509,49967,567,605Total936,367,803149,082,2331,004,129,299156,504,683
(3) Deferred income tax assets or liabilities presented by net amount after o?set
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
O?set amount ofdeferred income taxassets and liabilities atthe end of the period
Balance of deferredincome tax assetsand liabilities aftero?set at the end ofthe period
O?set amount ofdeferred income taxassets and liabilitiesat the beginning ofthe period
Balance of deferredincome tax assets andliabilities after o?set
at the beginning ofthe periodDeferred income tax assets49,841,261867,941,45179,628,344773,705,674Deferred income tax liabilities49,841,26199,240,97279,628,34476,876,339
(4) Details of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Deductible temporary di?erences737,902,172626,136,242Deductible losses1,419,947,4391,766,772,244Total2,157,849,6112,392,908,486
(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
YearDecember 31, 2022December 31, 2021Remark2022242,730,7542023373,743,427484,638,8662024244,363,628362,754,4682025304,004,857405,492,6882026271,098,107271,155,4682027226,737,420Total1,419,947,4391,766,772,244/
Other description:
□Applicable √Not applicable
127127
202231 Other non-current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
December 31, 2022December 31, 2021Book balance
Provision for
impairment
Book valueBook balance
Provision forimpairment
Book valueContract acquisition costContract performance costReturn cost receivableContract assetsOutstanding payments forconstruction completed
3,710,497,1983,710,497,1982,938,412,6612,938,412,661Contract warranty balancereceivable
526,801,14025,018,867501,782,273822,602,86037,855,051784,747,809Advance payment for buildings33,781,74033,781,74033,781,74033,781,740Total4,271,080,07825,018,8674,246,061,2113,794,797,26137,855,0513,756,942,210
Other description:
As at December 31, 2022, other non-current assets of RMB 3,572,872,352 (as at December 31, 2021: RMB2,827,154,241) 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 ofthe current year
Provision in thecurrent year
Reversal in thecurrent year
Balance at the end ofthe current year202237,855,05123,662,840(36,499,024)25,018,867202118,260,30121,985,570(2,390,820)37,855,051
32 Short-term borrowings
(1) Classication of short-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Pledged borrowingsMortgage borrowingsGuaranteed borrowings456,337,004Fiduciary borrowings1,793,682,9525,521,355,363Total1,793,682,9525,977,692,367
Description of the classication 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 atDecember 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 RMB456,337,004) was the bank loans borrowed by the subsidiaries of the Company, which was guaranteed by the letter ofguarantee issued by the bank for the Company within the scope of credit.
128128
33 Held-for-trading nancial liabilities
□Applicable √Not applicable
34 Derivative nancial liabilities
□Applicable √Not applicable
35 Notes payable
(1) Presentation of notes payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
TypeDecember 31, 2022December 31, 2021Commercial acceptance billBank acceptance bill5,401,258,8974,160,666,800Total5,401,258,8974,160,666,800The 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
ItemDecember 31, 2022December 31, 2021Payables for material purchase and productmanufacturing
6,615,263,0166,512,175,879Quality guarantee deposit payable336,129,389260,671,964Infrastructure payables168,623,91565,699,129Equipment and vessel purchase payables130,110,242123,908,832Port charge payable4,996,7724,016,835Total7,255,123,3346,966,472,639
(2) Important accounts payable aging over 1 year
□Applicable √Not applicable
Other description
√Applicable □Not applicable
20222021Amount
Proportion in totalamount%
Amount
Proportion in totalamount%Within 1 year5,406,703,068755,529,688,50079Over 1 year1,848,420,266251,436,784,13921Total7,255,123,3341006,966,472,639100
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 nal settlement.
129129
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: CNYItemDecember 31, 2022December 31, 2021Advances from customers for goods12,890,180,04612,009,937,041Amount settled for uncompleted work457,970,151376,205,787Total13,348,150,19712,386,142,828
(2) Amount of and reason for signicant 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
ItemDecember 31, 2021
Increase in current
period
Decrease in currentperiod
December 31, 2022I. Short-term compensation35,641,8402,096,153,3632,093,721,04938,074,154II. Post-employment benets -dened contribution plans
329,794,546329,794,546III. Dismissal benetsIV. Other benets due withinone yearTotal35,641,8402,425,947,9092,423,515,59538,074,154
(2) Presentation of short-term compensation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2021
Increase in current
period
Decrease in current
period
December 31, 2022I. Salaries, bonuses, allowancesand subsidies
1,700,186,5171,700,186,517II. Employee welfare63,801,50463,801,504III. Social insurance premium144,238,151144,238,151Including: medical insurancepremium
124,918,159124,918,159Work-related injury insurancepremium
8,842,9008,842,900Maternity insurance premium10,477,09210,477,092
130130
ItemDecember 31, 2021
Increase in current
period
Decrease in current
period
December 31, 2022IV. Housing provident funds4,880147,061,035147,059,8396,076V. Union expenditures andemployee education expenses
35,636,96022,789,72220,358,60438,068,078VI. Short-term paid absence18,076,43418,076,434VII. Short-term prot sharing planTotal35,641,8402,096,153,3632,093,721,04938,074,154
(3) Presentation of dened contribution plans
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2021
Increase incurrent period
Decrease incurrent period
December 31, 2022
1. Basic endowment insurance premium216,990,513216,990,513
2. Unemployment insurance premium9,824,0159,824,015
3. Enterprise annuity payment
4. Supplementary endowment insurance
premium
102,980,018102,980,018Total329,794,546329,794,546
Other description:
□Applicable √Not applicable
40 Tax payable
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021VAT68,911,31448,774,672Consumption taxSales taxEnterprise income tax64,624,71673,524,769Individual income tax21,435,04716,587,733Urban maintenance and construction tax33,026,0212,122,019Education surtax24,265,9641,811,882Others25,840,81325,006,313Total238,103,875167,827,388Other description:
None41 Other payablesItem presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Interest payableDividends payable6,5936,593Other payables1,314,681,722409,521,052Total1,314,688,315409,527,645
131131
2022Other 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
ItemDecember 31, 2022December 31, 2021Common stock dividendsPreferred stock/perpetual debt dividends classied asequity instrumentsPreferred stock/perpetual debt dividends-XXXPreferred stock/perpetual debt dividends-XXXDividends payable -XXXDividends payable -XXXDividends payable - Macau Zhenhua HarbourConstruction Co., Ltd.
6,5936,593Total6,5936,593
Other explanations, including important dividends payable that have not been paid for more than one year, the reasonsfor non-payment shall be disclosed:
As at December 31, 2022, the reason for the dividend payable with the aging over 1 year amounting to RMB 6,593 (asat December 31, 2021: RMB 6,593) was that the shareholders of the Company had not requested for actual payment by theGroup.
Other payables
(1) Other payables presented by nature
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022December 31, 2021Customer collection under asset-backed specialprogram
611,100,377Engineering deposit and quality guarantee deposit355,583,851216,019,465Amounts due to related parties14,907,68949,460,264Special payables14,963,44014,963,440Others318,126,365 129,077,883Total1,314,681,722409,521,052
(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:
20222021AmountProportion %AmountProportion %Within 1 year1,202,456,25691291,728,35171Over 1 year112,225,4669117,792,70129Total1,314,681,722100409,521,052100
132132
As at December 31, 2022, the other payables with the aging over 1 year were mainly the payable deposit and qualityguarantee 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: CNYItemDecember 31, 2022December 31, 2021Long-term borrowings due within one year6,543,553,3532,167,862,626Bonds payable due within one yearLong-term payables due within one year413,188,297349,112,204Lease liabilities due within one year4,703,5686,989,188Total6,961,445,2182,523,964,018
Other description:
None44 Other current liabilitiesOther current liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Short-term bonds payableRefund payableNon-public targeted debt nancing instrumentsTotal
Increase or decrease of short-term bonds payable:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Name of bond
Parvalue
Issuedate
Bondduration
Issueamount
December31, 2021
Currentissue
Interestaccrued atpar value
Amortizationof premiumand discount
Currentrepayment
December31, 2022ZPMC 2022privateplacement ofcorporate bonds(series 1)
Sept. 20,2022
3 months500,000,000500,000,0002,405,000502,405,000Total///500,000,000500,000,0002,405,000502,405,000Other description:
□Applicable √Not applicable
133133
2022
45 Long-term borrowings
(1) Classication of long-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Pledged borrowings2,469,639,5842,397,403,882Mortgage borrowingsGuaranteed borrowings319,142,716Fiduciary borrowings25,093,486,41524,395,076,983Less: Long-term borrowings due within one yearFiduciary borrowings-6,152,492,930-1,844,901,411Guaranteed borrowingsPledged borrowings -391,060,423-322,961,215Total21,019,572,64624,943,760,955Description of the classication of long-term borrowings:
NoneOther 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 atDecember 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, equivalentto RMB 319,142,716) was the bank loan borrowed by the Company's subsidiary Shanghai Zhenhua Port Machinery (HongKong) 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 atDecember 31, 2021: RMB 2,397,403,882) took the long-term accounts receivable, other non-current assets, contract assetsand 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 atDecember 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 nancial instruments
classied as nancial liabilities)
□Applicable √Not applicable
(3) Conditions and time for conversion of convertible bonds
□Applicable √Not applicable
(4) Description of other nancial instruments classied as nancial liabilities
Basic information of outstanding preferred shares, perpetual bonds and other nancial instruments at the end of theperiod
□Applicable √Not applicable
Changes in outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the period
□Applicable √Not applicable
Description of the basis for classifying other nancial instruments as nancial liabilities:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
134134
47 Lease liabilities
√Applicable □Not applicable
ItemDecember 31, 2022December 31, 2021Buildings and constructions11,634,1615,501,307Other equipment746,1142,224,505Less: Lease liabilities due within one year Buildings and constructions-3,996,022-5,451,439 Other equipment-707,546-1,537,749Total7,676,707736,624Other description:
None48 Long-term payablesItem presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Long-term payables1,931,340,7342,163,591,149Special payablesTotal1,931,340,7342,163,591,149
Other description:
√Applicable □Not applicable
Item20222021Leaseback nancing fund (i)1,658,661,4701,778,490,134Ship purchase payable208,938,000369,790,600“Building - transfer” and PPP project fund (ii)243,811,149219,719,005Project quality guarantee deposit233,118,412144,703,614Less: Leaseback nancing fund due within one year(413,188,297)(349,112,204)Total1,931,340,7342,163,591,149(i) As at December 31, 2022, the long-term payables of RMB 1,658,661,470 (as at December 31, 2021: RMB1,778,490,134) 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 nancial 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 leasebacknancing fund on schedule each year to the nancial leasing company in accordance with the contract terms. The Grouptakes 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 paymentswould be paid to the construction party after the nal acceptance of the “building-transfer” project within a certain term.
Long-term payables
(1) Presentation of long-term payables by nature
□Applicable √Not applicable
Special payables
(2) Presentation of special payables by nature
□Applicable √Not applicable
135135
202249 Long-term payroll payable
□Applicable √Not applicable
50 Estimated liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2021December 31, 2022CausesExternal guaranteePending litigationProduct quality guarantee depositRestructuring obligationsLoss contracts to be executedRefund payableOthersEstimated after-sale service cost188,005,742168,241,316Total188,005,742168,241,316/Other description, including relevant important assumptions and estimates of important estimated liabilities:
None
51 Deferred incomeDeferred income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2021
Increase incurrent period
Decrease incurrent period
December 31, 2022CausesGovernment subsidies353,906,76350,567,056105,971,640298,502,179Land compensation34,917,2011,000,00033,917,201Total388,823,96450,567,056106,971,640332,419,380/Items involved in government subsidies:
√Applicable □Not applicable
Unit: Yuan Currency:CNYLiability item
December31, 2021
Newsubsidyamountin currentperiod
Amountincluded innon-operatingincome incurrent period
Amountincludedin otherincomein currentperiod
Otherchanges
December
31, 2022
Assetsrelated /incomerelatedHoisting and pipe laying ship R&D project47,450,00047,450,000
IncomerelatedAutomated dock R&D project28,050,00028,050,000
IncomerelatedO?shore deep-water environmentalprotection intelligent shing groundconstruction project in Fujian
20,000,00020,000,000
IncomerelatedResearch on the technology andapplication of marine environmentalprotection coatings
15,030,00015,030,000
IncomerelatedIntelligent manufacturing workshop forcrane box of automated terminal
14,171,79614,171,796
Incomerelated
136136
Liability item
December31, 2021
Newsubsidyamountin currentperiod
Amountincluded innon-operating
income incurrent period
Amountincludedin otherincomein currentperiod
Otherchanges
December
31, 2022
Assetsrelated /incomerelatedConstruction and demonstration applicationof green supply chain standard system forintelligent large port complete equipment
13,500,00013,500,000
IncomerelatedHigh skill training facilities and equipmentfunding project
10,964,70010,964,700
Incomerelated10,000t semi-submerged ship R&D project11,386,667560,00010,826,667
IncomerelatedTransportation emplacement system R&Dproject
10,000,00010,000,000
IncomerelatedComprehensive standardization ofintelligent manufacturing of marineengineering equipment
11,700,0004,700,0007,000,000
IncomerelatedResearch and demonstration project ofcrane boom structure and its test with lowcost and large bearing capacity at sea
15,200,00013,516,0001,684,000
IncomerelatedKey technology research project ofbottom-supported o?shore wind powerinstallation platform
12,400,0004,000,00015,500,000900,000
IncomerelatedOthers144,053,60046,567,05664,910,6406,785,000118,925,016
IncomerelatedOther description:
√Applicable □Not applicable
Among the above government subsidies, some projects are government subsidies related to assets, and the rest arerelated to income.Land compensation refers to the land compensation acquired by a subsidiary of the Company, which shall be amortizedover the 50 years’ land use term.52 Other non-current liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2022December 31, 2021Contract liabilitiesOutput tax to be carried forward181,805,207292,297,881Total181,805,207292,297,881
Other description:
On balance sheet date, the revenue of some construction contracts and interest income of “building-transfer” projects ofthe Company had not reached the time point of the VAT liability.53 Share capital
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31,
2021
Increase/decrease (+/-)New shares
issued
Sharedonation
Conversionof reservesinto share
OthersSub-total
December 31,
2022Total shares5,268,353,5015,268,353,501
137137
2022Other description:
2022
Beginning balance
Increase/decrease in the current year
EndingbalanceNew shares
issued
Stockdividend
Common reservescapitalizing
OtherSub-totalShares withouttrading limitedconditions- RMB ordinaryshares
3,321,997,661-----3,321,997,661- Foreign shareslisted domestically
1,946,355,840-----1,946,355,840Total5,268,353,501-----5,268,353,5012021
Beginning balance
Increase/decrease in the current year
EndingbalanceNew sharesissued
Stockdividend
Common reservescapitalizing
OtherSub-totalShares withouttrading limitedconditions- RMB ordinaryshares
3,321,997,661-----3,321,997,661- Foreign shareslisted domestically
1,946,355,840-----1,946,355,840Total5,268,353,501-----5,268,353,501
54 Other equity instruments
(1) Basic information of outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the
period
√Applicable □Not applicable
As of December 31, 2022, the details of the Group’s outstanding perpetual bonds are as follows:
Date of
issue
Accountingclassication
Interestrate
Issueprice
NumberAmount
Maturity or
renewalPerpetual medium-termnotesShanghai Zhenhua HeavyIndustries Co., Ltd. 2022medium-term notes series I(22 ZPMC MTN001 (sci-techinnovation note))
Aug. 24,2022
Equityinstrument
3.22%1005,000,000500,000,000UndueThe Group issued the perpetual notes on August 24, 2022, with a term of 3+N (3) years, which will survive for along time before the Group redeems in accordance with the terms of issue, and will mature when the issuer redeems inaccordance with the terms of issue. The initial coupon of perpetual notes is 3.22%. In accordance with the terms of issueof medium-term notes, the Company has the right to distribute cash interest annually at annual interest rate and has nocontractual 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 currentinterest and all deferred interest and its fruits in accordance with this clause to the next interest payment date, and is notlimited by the number of deferred interest payments. On the reset date of the coupon rate of medium-term notes, theCompany has the right to redeem the medium-term notes at face value plus interest payable (including all deferred interestpayments). The Group deems that the notes do not meet the denition of nancial liabilities and therefore classies it asother equity instruments.
138138
(2) Changes in outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the period
√Applicable □Not applicable
Unit: Yuan Currency: CNYOutstanding nancialinstruments
BeginningIncrease in current period
Decrease in current
period
EndingAmountBook valueAmountBook valueAmountBook valueAmountBook valueShanghai Zhenhua HeavyIndustries Co., Ltd. 2022medium-term notes series I
5,000,000500,000,0005,000,000500,000,000Shanghai Zhenhua HeavyIndustries Co., Ltd. 2020medium-term notes series 2
5,000,000500,000,0005,000,000500,000,000Total5,000,000500,000,0005,000,000500,000,0005,000,000500,000,0005,000,000500,000,000Description of the increase and decrease of other equity instruments in the current period, reasons for changes, andbasis for relevant accounting treatment:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
55 Capital reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31,2021
Increase incurrent period
Decrease incurrent period
December 31,2022Capital premium (Share capital premium)4,537,774,5534,537,774,553Other capital reservesBusiness combination under common control-16,203,111-16,203,111Purchase of minority interest6,950,0386,950,038Absorption of minority shareholders’ investments bysubsidiaries
185,934,674185,934,674Transfer-in of capital reserves under the original system128,059,561128,059,561Total4,842,515,7154,842,515,715
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
Item
December 31,2021
Amount incurred in the current period
December31, 2022Pre-taxamount
Less: amountpreviously includedin the othercomprehensiveincome andcurrentlytransferred to theprot or loss
Less: amountpreviously includedin the othercomprehensive
income andcurrently transferredto retained earnings
Less:
income
tax
Attributableto the parent
companyafter tax
Attributable
to theminorityequity after
taxI. Othercomprehensiveincome that can’tbe reclassied intoprot and loss
-10,206,9967,195,5741,079,3376,116,237-4,090,759
139139
2022
Item
December 31,2021
Amount incurred in the current period
December31, 2022Pre-taxamount
Less: amountpreviously includedin the othercomprehensiveincome andcurrentlytransferred to theprot or loss
Less: amountpreviously includedin the othercomprehensiveincome andcurrently transferredto retained earnings
Less:
income
tax
Attributableto the parentcompanyafter tax
Attributableto theminorityequity aftertaxIncluding: Remeasurethe variation of netindebtedness ornet asset of denedbenet planOther comprehensiveincome that can'tbe reclassied intoprot and loss in theinvested enterpriseunder equity methodFair value change ofother equity instrumentinvestments
-10,206,9967,195,5741,079,3376,116,237-4,090,759Fair value change ofenterprise credit risksII. Othercomprehensiveincome that will bereclassied intoprot and loss
-59,148,062116,050,33388,104,80827,945,52528,956,746Including: Othercomprehensiveincome that will bereclassied into protand loss under equitymethod
-27,256,95720,743,89320,743,893-6,513,064Fair value change ofother debt investmentsAmount of nancialassets reclassied intoother comprehensiveincomeProvision for creditimpairment of otherdebt investmentsCash ow hedgingreserveTranslation reserve-31,891,10595,306,44067,360,91527,945,52535,469,810Total othercomprehensiveincome
-69,355,058123,245,9071,079,33794,221,04527,945,52524,865,987Other description, including the adjustment of the initial recognition amount of the e?ective part of prot or loss of cashow hedging converted into the hedged item:
None58 Special reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2021
Increase in current
period
Decrease in current
period
December 31, 2022Work safety expenses1,934,67650,813,28949,802,4052,945,560Total1,934,67650,813,28949,802,4052,945,560
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 SafetyExpenses”, the enterprises engaged in large-scale machinery manufacture and engineering construction shall withdraw thework safety expenses according to the standards. The increase or decrease in current year was the work safety expenseswithdrawn and used by the Group for the reporting year in accordance with relevant requirements.
140140
59 Surplus reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2021
Increase in current
period
Decrease in current
period
December 31, 2022Statutory surplus reserves1,386,879,82824,660,1801,411,540,008Discretionary surplus reserves292,378,668292,378,668Reserve fundEnterprise development fundOthersTotal1,679,258,49624,660,1801,703,918,676Description of surplus reserves, including the increase and decrease in current period and the reasons for changes:
In accordance with the Company Law of the People Republic of China, the Company’s Articles of Association and theresolutions of the Board of Directors, the Company withdrew 10% of its net prot as statutory surplus reserves. When theaccumulated amount of statutory surplus reserves reaches 50% or more of the share capital, the Company can stop thewithdrawal.The statutory surplus reserves can be used to compensate loss upon approval, or to increase share capital. Thestatutory surplus reserves withdrawn by the Company amounted to RMB 24,660,180 in 2022 (2021: RMB 27,839,949).60 Undistributed prots
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemCurrent periodPrevious periodUndistributed prots at the end of previous period before adjustment2,767,511,3012,377,187,005Total undistributed prots at the beginning of the adjustment period(increase +, decrease -)Undistributed prots at the beginning of the period after adjustment2,767,511,3012,377,187,005Plus: Net prot attributable to owners of the parent company371,937,232439,839,245Less: withdrawal of statutory surplus reserves24,660,18027,839,949
Withdrawal of discretionary surplus reserveWithdrawal of general risk preparationCommon stock dividends payable263,417,675Common stock dividends converted to share capitalDistribution of interest on the perpetual medium-term notes25,500,00021,675,000Undistributed prots at the end of the period2,825,870,6782,767,511,301Details of undistributed prot at the beginning of adjustment period:
1. Due to the retroactive adjustment of “Accounting Standards for Business Enterprises” and related new regulations,
the impact on undistributed prots at the beginning of the period was RMB 0.
2. The impact of changes in accounting policies on undistributed prots at the beginning of the period was RMB 0.
3. The impact of correction of major accounting errors on undistributed prots at the beginning of the period was RMB 0.
4. The impact of change of consolidation scope caused by the common control on undistributed prots at the beginning
of the period was RMB 0.
5. The total impacts of other adjustment on undistributed prots at the beginning of the period were RMB 0.
141141
202261 Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current periodAmount incurred in the previous period
RevenueCostRevenueCostPrimary business30,025,614,82126,014,865,34825,663,919,10423,345,388,234Other business166,178,166130,566,638314,057,864152,882,799Total30,191,792,98726,145,431,98625,977,976,96823,498,271,033
(2) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNYClassication of ContractXXX-DivisionTotalType of goods
Port machinery20,731,800,489Heavy equipment3,085,509,098Steel structures and related revenue2,731,132,322Shipping and lifting services1,719,708,160Engineering construction projects1,613,996,721Sales of materials and others83,685,678By region of operationChinese Mainland15,932,043,007Asia (excluding Chinese Mainland)7,726,392,023North America2,181,504,594Africa1,368,578,664Chinese Mainland (export sales)968,104,389Europe877,042,956South America600,144,518Oceania312,022,317Market or customer typeContract typeRevenue recognized at a certain point of timePort machinery19,833,964,539Heavy equipment1,342,286,476Steel structure and related income971,028,587Lifting services474,256,544Sales of materials and others83,685,678Revenue recognized in a certain period of timeSteel structure and related income1,760,103,735Heavy equipment1,743,222,622Engineering construction projects1,613,996,721Shipping1,245,451,615Port machinery897,835,951By time of goods transferBy contract termBy sales channelTotal29,965,832,468
Description of income from contracts:
□Applicable √Not applicable
142142
(3) Performance obligations
√Applicable □Not applicable
Sales of port machinery, heavy equipment and steel structure productsFor the port machinery production contract that meets the performance obligations within a certain period of time,the Group performs its performance obligations within the time of manufacturing and transferring the port machinery; forthe port machinery production contract that does not meet the performance obligations within a certain period of time, theGroup performs its obligations when delivering port machinery to customers and obtaining pre-delivery certicate or otherrelevant delivery certicates. For the heavy equipment production contract that meets the performance obligations withina certain period of time, the Group performs its performance obligations within the time of manufacturing and transferringthe heavy equipment; for the heavy equipment production contract that does not meet the performance obligations within acertain period of time, the Group performs its obligations when delivering heavy equipment to customers and obtaining thehandover protocol or other relevant delivery certicate. For the steel structure product manufacturing contract that meetsthe performance obligations within a certain period of time, the Group performs its performance obligations within the timeof manufacturing and transferring the steel structure product; for the steel structure product manufacturing contract thatdoes not meet the performance obligation within a certain period of time, the Group performs its performance obligationswhen the steel structure product is delivered and signed by the owner. The contract price is usually paid according to thepayment schedule agreed in the contract. After the delivery of the goods, the customer usually retains a certain proportion ofthe quality guarantee deposit, which is usually paid after the expiration of the quality guarantee period. The Group providesguaranteed warranty for the above products.
Building servicesThe Group performs its performance obligations within the time of providing services, and the contract price is usuallypaid within 30 days after the settlement of the project. The customer usually retains a certain proportion of the qualityguarantee deposit, which is usually paid after the expiration of the quality guarantee period.Shipping servicesThe Group performs its performance obligations within the time of providing transportation services. The contract priceis usually paid within the period from 3 days before unloading to 30 days after unloading.
(4) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
None62 Taxes and surcharges
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in the
previous periodConsumption taxSales taxUrban maintenance and construction tax45,473,67911,608,540Educational surtax34,681,1419,664,810Resource taxHousing property tax46,741,62346,626,294Land use tax18,768,82617,544,472Vehicle and vessel use taxStamp duty26,389,25821,588,309Others2,704,9301,146,992Total174,759,457108,179,417Other description:
None
143143
202263 Selling and distribution expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in theprevious periodEmployee compensation145,325,87084,827,601Travel expenses9,827,87010,332,549O?ce expenses6,200,1983,851,601Advertising and publicity costs3,795,6283,234,400Bidding and tendering expenses2,796,0372,515,560Sales and service fees1,811,4272,604,221Exhibition fees60,8391,824,011Other6,987,7956,157,495Total176,805,664115,347,438Other description:
None64 General and administrative expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in the
current period
Amount incurred in theprevious periodEmployee compensation422,344,628409,259,779Amortization of intangible assets90,354,95494,839,145Depreciation of xed assets62,513,54671,705,340O?ce expenses58,616,60057,743,890Expenses from employment of intermediaries42,781,83040,622,616Management and security fees23,089,22123,030,325Travel expenses20,418,25339,385,590Informatization expenses16,683,02315,149,594Management and cleaning fees15,760,35617,126,611Consulting fees9,903,41315,042,753Insurance expenses6,053,4376,821,519Entertainment expenses5,927,0028,646,106Maintenance cost3,518,40710,539,953Others57,725,49859,282,308Total835,690,168869,195,529
Other description:
None
144144
65 Research and development expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in thecurrent period
Amount incurred in theprevious periodEmployee compensation560,361,835406,651,236Materials expenses300,416,273209,143,216Processing expenses144,441,413142,377,157Depreciation expenses85,911,76578,571,508Product design expenses126,2141,803,008Others27,079,59144,608,097Total1,118,337,091883,154,222
Other description:
None
66 Financial expenses
√Applicable □Not applicable
Unit: Yuan Currency:CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodInterest expenses1,083,262,2161,173,353,036Less: Capitalized amount of interest44,941,15178,901,554Less: interest income413,595,714356,324,952Exchange losses/gains98,700,929-108,524,119Others51,653,59734,225,111Total775,079,877663,827,522Other 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: CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodFiscal appropriation75,734,11354,401,334Technological subsidy23,979,69117,284,346Fiscal appropriation3,300,4003,300,400Land compensation1,000,0001,000,000Total104,014,20475,986,080Other description:
None
145145
202268 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodIncome from long-term equity investment calculated under the equitymethod
170,402,945237,773,613Investment income from disposal of long-term equity investment-95,166167,833,181Investment income from held-for-trading nancial assets during theholding period
60,831,66352,776,243Dividend income from other equity instrument investment duringholding
335,7907,835,826Interest income from debt investment during holdingInterest income from other debt investment during holdingInvestment income from disposal of held-for-trading nancial assets5,843819,204,693Investment income from disposal of other equity instrumentinvestmentInvestment income from disposal of debt investmentInvestment income from disposal of other debt investmentIncome from debt restructuringInvestment income from disposal of other non-current nancialassets investment
1,050,134Losses on derecognition of nancial assets measured at amortizedcost
-20,135,378Others-6,986,339Total204,359,3581,286,473,690
Other description:
None
69 Net exposure hedging gain
□Applicable √Not applicable
70 Income from fair value change
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Sources of income from fair value change
Amount incurred in thecurrent period
Amount incurred in the
previous periodHeld-for-trading nancial assetsIncluding: income from fair value change of derivative nancialinstrumentsIncluding: Stock investment of listed companies-276,050,580-249,220,046Held-for-trading nancial liabilitiesInvestment property measured at fair valueOther non-current nancial assets13,307,209Total-276,050,580-235,912,837
Other description:
None
146146
71 Credit impairment loss
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodLoss on bad debts of notes receivableLoss on bad debts of accounts receivable322,159,775154,045,684Loss on bad debts of other receivables23,996,6591,516,202Loss on impairment of debt investmentLoss on impairment of other debt investmentLoss on bad debts of long-term receivablesLoss on impairment of contract assetsTotal346,156,434155,561,886Other description:
None
72 Assets impairment losses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in the
current period
Amount incurred in the
previous periodI. Bad debt lossII. Loss on price falling of inventory and impairment loss of contractperformance costs
82,677,874253,395,139III. Impairment loss of long-term equity investmentIV. Impairment loss of investment propertyV. Impairment loss of xed assetsVI. Impairment loss of engineering materialsVII. Impairment loss of construction in progressVIII. Impairment loss of productive biological assetsIX. Impairment loss of oil and gas assetsX. Impairment loss of intangible assetsXI. Goodwill impairment lossXII. OthersXIII. Impairment loss of contract assets9,832,76440,784,984Total92,510,638294,180,123Other description:
None73 Income from disposal of assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in thecurrent period
Amount incurred in the
previous periodIncome from disposal of xed assets66,186,62271,278,254Total66,186,62271,278,254
147147
2022Other description:
None
74 Non-operating incomeNon-operating income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amountincurred in theprevious period
Amount included innon-recurring prot orloss in current periodTotal gains from disposal of non-current assetsIncluding: Gains from disposal of xed assetsGains from disposal of intangible assetsGains from exchange of non-monetary assetsAccepting donationsGovernment subsidies2,401,7435,167,1262,401,743Revenue from insurance indemnity6,501,309787,3376,501,309Amercement gains9,835,5179,717,5809,835,517Others13,401,03810,995,14413,401,038Total32,139,60726,667,18732,139,607Government subsidies included in current prot or loss
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
75 Non-operating expenditure
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in thecurrent period
Amount incurred in theprevious period
Amount included innon-recurring prot orloss in current periodTotal loss on disposal of non-current assetsIncluding: Loss on disposal of xed assetsLoss on disposal of intangible assetsLoss on exchange of non-monetary assetsExternal donations385,000404,437385,000Overdue ne payment1,551,733638,6241,551,733Others499,3623,816,232499,362Loss on debt restructuring4,551,760Total2,436,0959,411,0532,436,095
148148
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:
20222021Used raw materials and low-cost consumables 22,527,830,427 20,021,857,825Employee compensation (Note VII (39))2,425,947,909 2,205,176,153Outsourcing expenses 1,379,194,069 1,476,300,853Depreciation and amortization expenses(Note VII (20), (21), (25), (26), (29))1,277,984,117 1,308,249,367Changes in goods in process and inventories-1,760,120,195 -1,704,323,646Transportation expenses776,733,902 596,391,014Rental fees 296,164,078 274,193,298On-site installation expenses 243,883,711 254,681,587Energy cost257,634,101 233,453,421After-sale cost251,168,929 179,801,690O?ce expenses64,816,798 61,595,491Travel expenses30,246,123 49,718,139Expenses from employment of intermediaries42,781,830 40,622,616Informatization expenses16,683,023 15,149,594Entertainment expenses5,927,002 8,646,106Bidding and tendering expenses2,796,037 2,515,560Other expenses436,593,048 341,939,154Total28,276,264,90925,365,968,222
76 Income tax expenses
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in the
current period
Amount incurred in theprevious periodCurrent income tax expenses130,622,921124,422,021Deferred income tax expenses-72,950,481-47,426,479Total57,672,44076,995,542
(2) Accounting prot and income tax expenses adjustment process
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemAmount incurred in the current periodTotal prots655,234,788The income tax expenses calculated based on statutory/applicable tax rates98,285,218Inuences caused by di?erent tax rates adopted by subsidiaries44,206,773Inuences caused by adjustment on income tax of previous periodsInuences on non-taxable incomeInuences caused by non-deductible cost, expenses and losses2,798,845Inuences caused by non-conrmation of deductible losses of deferred income tax assets-46,307,679
149149
2022ItemAmount incurred in the current periodInuences caused by non-conrmation of deductible temporary di?erences or deductiblelosses in current period
40,642,251Prot or loss attributable to joint ventures and associates-25,560,442Tax-free income-9,175,994Adjustment to nal settlement in previous years4,272,302Additional deduction of technological development expenses-51,488,834Income tax expenses57,672,440Other description:
□Applicable √Not applicable
77 Other comprehensive income
√Applicable □Not applicable
See Note VII (57) for details.78 Cash ow statement items
(1) Other cash received related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency:CNYItem
Amount incurred in the
current period
Amount incurred in the
previous periodCustoms deposit recovered155,522,957186,204,657Cash received from government subsidies and rewards70,312,36386,931,169Employee loan recovered1,559,1115,302,967Cash received from the revenue from nes9,835,5179,717,580Others 6,773,14820,194,931Total244,003,096308,351,304Description of other cash received related to operating activities:
None
(2) Other cash paid related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in the
previous periodCustoms deposit paid361,009,064214,376,861Expenditures on selling and distribution expenses, general andadministrative expenses, and research and development expenses
294,392,928284,557,883Financial expenses and handling charges51,626,66734,225,153Subsidy for research and development paid to cooperative units20,301,0005,710,000Others69,972,68322,190,853Total797,302,342561,060,750Description of other cash paid related to operating activities:
None
150150
(3) Other cash received related to investing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in the
current period
Amount incurred in theprevious periodInterest income209,457,444425,449,726Total209,457,444425,449,726Description 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 nancing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in theprevious periodCustomer collection received under the asset-backed specialprogramRestricted bank deposits recovered2,310,473208,159,986Leaseback payments received4,696,898901,819,520Others611,100,377200,000,000Total618,107,7481,309,979,506
Description of other cash received related to nancing activities:
None
(6) Other cash paid related to nancing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in thecurrent period
Amount incurred in the
previous periodPrincipal of perpetual bond repaid500,000,000Related-party loan repaid223,206,280513,656,424Third-party loan repaid98,957,097282,772,621Deposited restricted monetary funds4,973,788207,726,213Rental paidDisinvestment by minority shareholdersOthers11,207,70614,651,429Total838,344,8711,018,806,687
Description of other cash paid related to nancing activities:
None
151151
202279 Further information on cash ow statement
(1) Further information on cash ow statement
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Further informationCurrent amountPrevious amount
1. Reconciliation from net prots to cash ows from operating activities:
Net prot597,562,348528,345,577Plus: provision for impairment of assets92,510,638294,180,123Credit impairment loss346,156,434155,561,886Depreciation of xed assets, oil and gas assets and productivebiological assets
1,173,015,6841,201,761,933Amortization of right-of-use assets11,582,96811,440,962Amortization of intangible assets93,385,46595,046,472Amortization of long-term deferred expensesLosses on disposal of xed assets, intangible assets and other long-term assets (gains expressed with “-”)
-66,186,622-71,278,254Loss on retirement of xed assets (gains expressed with “-”)Loss from fair value change (gains expressed with “-”)276,050,580235,912,837Financial expenses (gains expressed with “-”)488,026,167706,501,743Investment losses (gains expressed with “-”)-231,481,075-1,286,473,690Decrease in deferred income tax assets (increase expressed with “-”)-94,235,777-16,920,002Increase in deferred income tax liabilities (decrease expressed with “-”)21,285,296-30,506,477Decrease in inventories (increase expressed with “-”)-1,108,554,285-502,309,148Increase in construction contract payment-1,678,870,361-671,839,885Decrease in operating receivables (increase expressed with “-”)61,780,602452,311,814Increase in operating payables (decrease expressed with “-”)2,585,383,3051,017,905,104Increase in special reserves (decrease expressed with “-”)1,152,656-1,477OthersNet cash ow from operating activities2,568,564,0232,119,639,518
2. Signicant investment and nancing activities not involving cash deposit and withdrawal:
Conversion of debt into capitalConvertible bonds due within one yearFixed assets under nancing lease
3. Net changes in cash and cash equivalents:
Ending balance of cash2,375,101,4374,449,837,877Less: Beginning balance of cash4,449,837,8772,897,742,340Plus: Ending balance of cash equivalentsLess: Beginning balance of cash equivalentsNet increase of cash and cash equivalents-2,074,736,4401,552,095,537Endorsement transfer of notes:
20222021Endorsement transfer of bank acceptance bill received from sales ofgoods and rendering of services
1,312,121,1652,537,611,014
152152
(2) Net cash paid to acquire subsidiaries in current period
□Applicable √Not applicable
(3) Net cash received from disposal of subsidiaries in current period
□Applicable √Not applicable
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021I. Cash2,375,101,4374,449,837,877Including: cash on hand1,027,476851,261
Bank deposit readily available for payment2,374,073,9614,448,986,616Other monetary capital readily available for paymentDeposits with central bank available for paymentDeposits in other banksBorrowings from other banksII. Cash equivalentsIncluding: bond investment due within three monthsIII. Balance of cash and cash equivalents at the end of period2,375,101,4374,449,837,877Including: restricted cash and cash equivalents of parent companyor subsidiaries within the Group
Other description:
□Applicable √Not applicable
80 Notes to items in statement of owner's equityState 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: CNYItemBook value at the end of the periodReason of restrictionMonetary funds21,946,276Remark 1Notes receivableInventoriesFixed assets2,463,807,041Remark 2Intangible assetsLong-term receivables2,212,190,758Remark 3Other non-current assets3,572,872,352Remark 4Contract assets133,406,311Remark 5Accounts receivable191,217,707Remark 6Total8,595,440,445/
153153
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 inoverseas supervision account and the margin deposit deposited by the Group for applying to the bank for letter of credit andbank 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 nancial leasing company, with the nancing term of 3 - 12years.
Remark 3: As at December 31, 2022, the long-term receivables of “building-transfer” project with the book value ofRMB 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 atDecember 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 December31, 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: YuanItem
Ending foreigncurrency balance
Conversion exchange
rate
Ending balance,converted into RMBMonetary fund--Including: USD240,301,7656.96461,673,605,673
EUR24,975,9827.4229185,394,217HKD56,759,3340.893350,703,113INR312,984,5610.084226,353,300ZAR62,608,1860.411325,750,747KRW3,940,862,4560.005521,674,744AED5,634,4241.896610,686,249RUB104,296,5110.09429,824,731GBP986,6038.39418,281,644AUD1,741,4864.71388,209,017MYR3,363,1781.57725,304,404LKR144,220,6660.01922,769,037SGD319,9335.18311,658,245BRL635,1961.3176836,934SAR259,5921.8528480,972GHS117,1030.714383,647JPY943,8000.052449,455CAD2695.13851,382KES23,5570.05651,331NZD54.416222
154154
Item
Ending foreigncurrency balance
Conversion exchange
rate
Ending balance,converted into RMBAccounts receivable--Including: USD378,737,0376.96462,637,751,968
EUR91,107,3977.4229676,281,097RUB1,348,514,3460.0942127,030,051AED44,973,4361.896685,296,619GBP2,632,8848.394122,100,692QAR11,518,5551.913422,039,603CAD4,160,0245.138521,376,283MYR9,051,6641.577214,276,284HKD15,671,0960.893313,998,990SAR6,088,5981.852811,280,954INR132,339,2310.084211,142,963KRW1,942,230,6720.005510,682,269ZAR23,690,5090.41139,743,906SGD1,288,7565.18316,679,751LKR293,553,7820.01925,636,233BRL3,740,1521.31764,928,024AUD418,6354.71381,973,362Other receivables--Including: USD7,958,3496.964655,426,717
RUB72,691,5840.09426,847,547ZAR14,204,8950.41135,842,473EUR496,7467.42293,687,296KRW526,411,4820.00552,895,263AUD293,7474.71381,384,665LKR52,184,5020.01921,001,942INR9,196,3620.0842774,334HKD645,8110.8933576,903OMR4,64818.088984,077BRL51,3231.317667,623Accounts payable--Including: USD137,860,2766.9646960,141,678
EUR43,662,1757.4229324,099,959GBP1,903,7838.394115,980,545RUB105,891,4520.09429,974,975SGD1,762,1245.18319,133,265INR103,176,1340.08428,687,430HKD8,746,2760.89337,813,048ZAR11,759,0810.41134,836,510KRW644,181,7850.00553,543,000JPY15,140,3800.0524793,356BRL495,2551.3176652,548LKR21,304,0690.0192409,038CAD22,2955.1385114,563AUD19,1494.713890,265Other payables--Including: EUR9,016,0817.422966,925,468
USD4,241,0326.964629,537,091KRW589,480,4170.00553,242,142SGD390,6575.18312,024,814LKR96,170,8030.01921,846,479GBP212,1568.39411,780,859ZAR1,987,0250.4113817,263INR678,9160.084257,165HKD15,2610.893313,633
155155
2022Item
Ending foreigncurrency balance
Conversion exchange
rate
Ending balance,converted into RMBShort-term borrowingsIncluding: EUR50,550,0007.4229375,227,595Long-term payables due within one year--Including: USD52,531,8356.9646365,863,218Long-term payables--Including: USD204,011,0876.96461,420,855,617Other description:
None
(2) Description of overseas business entities, including the disclosure of main overseas business locations, recording
currency and selection basis for important overseas business entities, as well as the reasons for changes in recordingcurrency
□Applicable √Not applicable
None83 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
156156
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 otherreasons and relevant information:
□Applicable √Not applicable
6 Others
□Applicable √Not applicable
IX. Interests in other entities1 Interests in subsidiaries
(1) Subsidiaries of the Group:
√Applicable □Not applicable
Name of subsidiaryPrincipal place of businessRegistration placeBusiness nature
Shareholding ratio (%)
Way ofacquisitionDirectIndirectShanghai Zhenhua Port Machinery HeavyIndustries Co., Ltd.
Chongming, Shanghai
Chongming,Shanghai
Machinemanufacturing
94.76%0.00%
Establishment byinvestingShanghai Zhenhua Port Machinery (HongKong) Co., Ltd.
Hong KongHong KongShipping100%0.00%
Establishment byinvestingShanghai Zhenhua Shipping Co., Ltd.Pudong New Area, Shanghai
Pudong New Area,Shanghai
Shipping55.00%0.00%
Establishment byinvestingNantong Zhenhua Heavy EquipmentManufacturing Co., Ltd.
Nantong City, Jiangsu Province
Nantong City,Jiangsu Province
Machinemanufacturing
100.00%0.00%
Establishment by
investingZPMC Transmission Machinery (Nantong)Co., Ltd.
Nantong City, Jiangsu Province
Nantong City,Jiangsu Province
Machinemanufacturing
50.75%0.00%
Establishment byinvestingZPMC Electric Co., Ltd.Pudong New Area, Shanghai
Pudong New Area,Shanghai
Electric equipmentresearch anddevelopment
100.00%0.00%
Establishment byinvestingShanghai Zhenhua Ocean EngineeringService Co., Ltd
Yangshan Bonded Port Area,
Shanghai
Yangshan BondedPort Area, Shanghai
Shipping100.00%0.00%
Establishment by
investingZPMC Machinery Equipment Services Co.,Ltd.
Pudong New Area, Shanghai
Pudong New Area,
Shanghai
Technicalconsultancy
100.00%0.00%
Establishment by
investingZPMC Netherlands Co?peratie U.A.Rotterdam, Netherlands
Rotterdam,Netherlands
Trade sales100.00%0.00%
Establishment by
investingZPMC Netherlands B.V.Rotterdam, Netherlands
Rotterdam,Netherlands
Trade sales100.00%0.00%
Establishment by
investingVerspannen B.V.Rotterdam, Netherlands
Rotterdam,Netherlands
Machinemanufacturing
0.00%100.00%
Businesscombination notunder commoncontrolZPMC Espana S.L.Los Barrios, SpainLos Barrios, SpainTrade sales0.00%100.00%
Establishment by
investingZPMC Italia S.r.l.Vado Ligure Port, Italy
Vado Ligure Port,
Italy
Trade sales0.00%100.00%
Establishment by
investingZPMC GmbH HamburgHamburg, GermanyHamburg, GermanyTrade sales100.00%0.00%
Establishment by
investingZPMC Lanka Company (Private) LimitedColombo, Sri LankaColombo, Sri LankaTrade sales70.00%0.00%
Establishment by
investingZPMC North America Inc.Delaware, USADelaware, USATrade sales100.00%0.00%
Establishment by
investingZPMC Korea Co., Ltd.Pusan, KoreaPusan, KoreaTrade sales100.00%0.00%
Establishment by
investingZPMC Engineering Africa (Pty) Ltd.
Kwazulu-Natal Province,Republic of South Africa
Kwazulu-NatalProvince, Republic
of South Africa
Trade sales100.00%0.00%
Establishment by
investingZPMC Engineering (India) Private LimitedMaharashtra State, India
Maharashtra State,
India
Trade sales100.00%0.00%
Establishment by
investing
157157
2022
Name of subsidiaryPrincipal place of businessRegistration placeBusiness nature
Shareholding ratio (%)
Way ofacquisitionDirectIndirectZPMC Southeast Asia Holding Pte. Ltd.SingaporeSingaporeTrade sales100.00%0.00%
Establishment by
investingZPMC Engineering (Malaysia) Sdn. Bhd.MalaysiaMalaysiaTrade sales0.00%70.00%
Establishment by
investingZPMC Australia Company (Pty) Ltd.New South Wales, Australia
New South Wales,
Australia
Trade sales100.00%0.00%
Establishment by
investingShanghai Zhenhua Heavy Industries PortMachinery General Equipment Co., Ltd.
Pudong New Area, Shanghai
Pudong New Area,
Shanghai
Machinemanufacturing
100.00%0.00%
Businesscombination undercommon controlShanghai Port Machinery Heavy IndustryCo., Ltd
Pudong New Area, Shanghai
Pudong New Area,Shanghai
Machinemanufacturing
0.00%74.02%
Businesscombination under
common controlZPMC Zhangjiagang Port Machinery Co.,Ltd.
Zhangjiagang City, JiangsuProvince
Zhangjiagang City,Jiangsu Province
Machinemanufacturing
90.00%0.00%
Businesscombination undercommon controlNanjing Ninggao New Channel ConstructionCo., Ltd
Nanjing City, Jiangsu Province
Nanjing City,Jiangsu Province
Engineeringconstruction
100.00%0.00%
Establishment by
investingZPMC Qidong Marine Engineering Co., Ltd.Nantong City, Jiangsu Province
Nantong City,Jiangsu Province
Machinemanufacturing
67.00%0.00%
Businesscombination notunder common
controlJiahua Shipping Co., Ltd.Hong KongHong KongShipping0.00%70.00%
Establishment byinvestingZhenhua Pufeng Wind Energy (HongKong)Co., Ltd.
Hong KongHong KongShipping0.00%51.00%
Establishment by
investingZPMC Brazil Servi?o Portuários LTDARio DE Janeiro, Brazil
Rio DE Janeiro,Brazil
Trade sales80.00%0.00%
Establishment by
investingZPMC Limited Liability CompanyMoscow, RussiaMoscow, RussiaTrade sales85.00%0.00%
Establishment by
investingZPMC NA East Coast lnc.VirginiaDelaware, USATrade sales0.00%100.00%
Establishment by
investingCCCC Investment & Development QidongCo., Ltd. (Remark 1)
Nantong City, Jiangsu Province
Nantong City,Jiangsu Province
Engineeringconstruction
49.83%0.00%
Establishment by
investingCCCC Liyang Urban Investment andConstruction Co., Ltd. (Remark 2)
Liyang City, Jiangsu Province
Liyang City, Jiangsu
Province
Engineeringconstruction
48.00%0.00%
Establishment by
investingZPMC UK LDCardi?, UKCardi?, UKTrade sales100.00%0.00%
Establishment by
investingZPMC Middle East FzeDubai, UAEDubai, UAETrade sales100.00%0.00%
Establishment by
investingCCCC (Huaian) Construction DevelopmentCo., Ltd.
Huaian City, Jiangsu Province
Huaian City, Jiangsu
Province
Engineeringconstruction
0.00%65.00%
Establishment by
investingCCCC Zhenjiang Investment ConstructionManagement Development Co., Ltd.
Zhenjiang City, Jiangsu
Province
Zhenjiang City,Jiangsu Province
Engineeringconstruction
70.00%0.00%
Establishment by
investingCCCC Yongjia Construction DevelopmentCo., Ltd.
Wenzhou City, Zhejiang
Province
Wenzhou City,Zhejiang Province
Engineeringconstruction
80.00%0.00%
Establishment by
investingCCCC Zhenhua Lvjian Technology (Ningbo)Co., Ltd. (Remark 3)
Ningbo City, Zhejiang Province
Ningbo City,Zhejiang Province
Engineeringconstruction
40.00%0.00%
Establishment by
investingZPMC Hotel Co., Ltd.Pudong New Area, Shanghai
Pudong New Area,
Shanghai
Hotel and catering0.00%100.00%
Businesscombination notunder common
controlCCCC Rudong Construction DevelopmentCo., Ltd.
Rudong City, Jiangsu Province
Rudong City,Jiangsu Province
Engineeringconstruction
8.04%58.46%
Establishment by
investingZPMC Latin America Holding CorporationPanamaPanamaTrade sales100.00%0.00%
Establishment by
investingTerminexus Co., Ltd.Hong KongHong Kong
Technicalconsultancy
0.00%100.00%
Establishment by
investing
158158
Name of subsidiaryPrincipal place of businessRegistration placeBusiness nature
Shareholding ratio (%)
Way ofacquisitionDirectIndirectGreenland Heavylift (Hong Kong) Limited(Remark 4)
Hong KongHong KongShipping0.00%50.00%
Businesscombination notunder common
controlGPO Grace LimitedMarshall IslandsMarshall IslandsShipping0.00%100.00%
Businesscombination notunder common
controlGPO Amethyst LimitedMarshall IslandsMarshall IslandsShipping0.00%100.00%
Businesscombination notunder common
controlGPO Sapphire LimitedMarshall IslandsMarshall IslandsShipping0.00%100.00%
Businesscombination notunder common
controlGPO Emerald LimitedMarshall IslandsMarshall IslandsShipping0.00%100.00%
Businesscombination notunder common
controlGPO Heavylift LimitedCayman IslandsCayman IslandsShipping0.00%60.00%
Businesscombination notunder common
controlGPO Heavylift ASOslo, NorwayOslo, NorwayShipping0.00%100.00%
Businesscombination notunder common
controlGPO Heavylift Pte LtdSingaporeSingaporeShipping0.00%100.00%
Businesscombination notunder common
controlZPMC JSD 6000 (Hong Kong) LimitedHong KongHong KongShipping0.00%100.00%
Establishment byinvestingXiong’an Zhenhua Co., Ltd.Baoding City, Hebei Province
Baoding City, HebeiProvince
Intelligent service100.00%0.00%
Establishment byinvestingZPMC Fuzhou O?shore Construction Co.,Ltd.
Fuzhou City, Fujian Province
Fuzhou City, FujianProvince
Maritimeengineeringconstruction
100.00%0.00%
Establishment by
investingCCCC (Dongming) Investment andConstruction Co., Ltd.
Heze City, Shandong Province
Heze City,Shandong Province
Engineeringconstruction
70.00%0.00%
Establishment by
investingCCCC Zhenhua Intelligent Parking(Hengyang) Co., Ltd.
Hengyang City, Hunan Province
Hengyang City,Hunan Province
Engineeringconstruction
55.00%0.00%
Establishment by
investingZhenhai No. 2 Drilling LimitedHong KongHong KongDrilling services0.00%100.00%
Establishment by
investingZhenhai No.3 Drilling LimitedHong KongHong KongDrilling services0.00%100.00%
Establishment by
investingZhenhai No. 5 Drilling LimitedHong KongHong KongDrilling services0.00%100.00%
Establishment by
investingZhenhai No. 6 Drilling LimitedHong KongHong KongDrilling services0.00%100.00%
Establishment by
investing
The shareholding ratio in subsidiaries is di?erent from the proportion of voting rights:
NoneThe basis for holding half or less of the voting rights but still controlling the invested entity, and the basis for holdingmore than half of the voting rights but not controlling the invested entity:
None
159159
2022The basis for control of the important structured entities included in the consolidation scope:
NoneBasis for determining whether the Company is an agent or a principal:
NoneOther description:
Remark 1: By signing the agreement for concerted action with CCCC Tianjin Dredging Co., Ltd., the Group hadobtained 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 rightthereof, 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 EastChina Investment Co., Ltd., the Group had obtained 76% voting power in the board of shareholder and 71% voting power inthe board of directors of this company. In accordance with the regulations of the articles of association of such company, theGroup had obtained the control rights thereof, thus, such company was included in the Groups’ consolidation scope.
Remark 3: By signing the agreement for concerted action with CCCC Highway Consultants Co., Ltd. and CCCCEquipment Manufacturing Marine Heavy Industry Division, the Group had obtained 50% voting power in the board ofshareholders and 60% voting power of the board of directors of this company. In accordance with the regulations of thearticles of association of such company, the Group had obtained the control right thereof, thus, such company was includedin 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 directorsof this company, including chairman of the board. As required in the articles of association of such company, the chairmanof the board has super voting power when the voting of the board is deadlocked. In addition, Group also has the right to buy1% equity of such company at USD 1 at any time in the future. Therefore, the Group has the substantial control over suchcompany, and such company was included in the Group’s consolidation scope for the nancial statements.
(2) Major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Name of subsidiary
Shareholdingratio of minority
shareholder
Prot or lossattributable to theminority shareholder
in current period
Dividends declared tominority shareholders
in current period
Balance of minorityshareholders' equity at
the end of the periodZPMC Transmission Machinery(Nantong) Co., Ltd.
49.25%59,433,79058,000,000829,239,431CCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
30.00%288,945208,210,207Greenland Heavylift(HongKong) Limited
50.00%125,670,317429,730,270Description of the di?erence between the shareholding ratio of minority shareholders and the proportion of voting rightratio in subsidiaries:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
160160
2022
Shareholdingratio ofminorityshareholder
Capitalcontributed /(withdrawn)by minorityshareholde
Prot or lossattributable tothe minorityshareholder
Dividendspaid tominorityshareholder
Specialreserveswithdrawnby minorityshareholder
Accumulatedminorityequity at theend of theyearZPMC TransmissionMachinery (Nantong)Co., Ltd.
49.25%-59,433,790(58,000,000)-829,239,431CCCC ZhenjiangInvestment ConstructionManagementDevelopment Co., Ltd.
30.00%-288,945--208,210,207Greenland Heavylift(HongKong) Limited
50.00%-125,670,317--429,730,2702021
Shareholding
ratio ofminorityshareholder
Capitalcontributed /(withdrawn)by minorityshareholde
Prot or lossattributable tothe minorityshareholder
Dividendspaid tominorityshareholder
Specialreserveswithdrawnby minorityshareholder
Accumulatedminorityequity at theend of theyearZPMC TransmissionMachinery (Nantong)Co., Ltd.
49.25%-56,584,861(54,980,822)-827,805,641CCCC ZhenjiangInvestment ConstructionManagementDevelopment Co., Ltd.
30.00%-3,929,426--207,921,262Greenland Heavylift(HongKong) Limited
50.00%-36,540,074(7,357,558)-277,209,331
(3) Main nancial information of major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Name of subsidiary
December 31, 2022Currentassets
Non-currentassets
Total assets
Currentliabilities
Non-current
liabilities
Total liabilitiesCCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
565,932,743139,615,446705,548,189-11,514,162-11,514,162Greenland Heavylift (HongKong) Limited
252,929,8162,463,909,7212,716,839,537-455,071,592-1,420,855,618-1,875,927,210ZPMC TransmissionMachinery (Nantong) Co., Ltd.
1,839,605,961366,807,6222,206,413,583-522,208,391-752,137-522,960,528
161161
2022
Name of subsidiary
December 31, 2021Currentassets
Non-currentassets
Total assets
Currentliabilities
Non-currentliabilities
Total liabilitiesCCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
378,618,007337,518,789716,136,796-23,065,919-23,065,919Greenland Heavylift (HongKong) Limited
239,297,2172,452,507,3012,691,804,518-255,234,882-1,890,456,264-2,145,691,146ZPMC TransmissionMachinery (Nantong) Co.,Ltd.
1,533,617,163394,881,1981,928,498,361-246,864,532-1,483,975-248,348,507Name of subsidiary
Amount incurred in the current periodOperatingrevenue
Net prot
Total comprehensiveincome
Cash ows fromoperating activitiesCCCC Zhenjiang Investment ConstructionManagement Development Co., Ltd.
963,151963,151-1,227,820Greenland Heavylift (Hong Kong) Limited734,051,637230,854,796257,705,416526,244,021ZPMC Transmission Machinery (Nantong) Co., Ltd.1,284,808,112120,684,118120,684,118138,491,055
Name of subsidiary
Amount incurred in the previous periodOperating
revenue
Net prot
Total comprehensive
income
Cash ows fromoperating activitiesCCCC Zhenjiang Investment ConstructionManagement Development Co., Ltd.
13,098,08613,098,086-994,679Greenland Heavylift (Hong Kong) Limited445,755,43671,064,46055,606,86664,084,615ZPMC Transmission Machinery (Nantong) Co., Ltd.731,440,163114,899,184114,899,184125,724,458Other description:
None
(4) Major restrictions on the use of assets of enterprise group and the repayment of debts of enterprise group
□Applicable √Not applicable
(5) Financial support or other supports provided to structured entities included in the scope of consolidated nancial
statements
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
2 Transactions in which the owner’s equity share of a subsidiary changes and the subsidiary is still undercontrol□Applicable √Not applicable
162162
3 Equity in joint ventures and associates
√Applicable □Not applicable
(1) Major joint ventures or associates
√Applicable □Not applicable
Unit: Yuan Currency: CNYName of joint venture or associate
Principalplace ofbusiness
Registrationplace
Business nature
Shareholding ratio (%)
Accounting
treatmentDirectIndirectJoint venturesJiangsu Longyuan Zhenhua MarineEngineering Co., Ltd
JiangsuNantong, Jiangsu
Marine engineeringconstruction
50.00%Equity method
ZPMC Mediterranean LimanMakinalari Ticaret Anonim Sirketi
Istanbul,Turkey
Istanbul, Turkey
Technical servicefor port equipment
50.00%Equity method
Zhenhua Marine Energy (HK) Co., Ltd.Hong KongHong KongShipping51.00%Equity methodCranetech Global Sdn.Bhd.MalaysiaMalaysia
Technical servicefor port equipment
49.99%Equity method
ZPMC-OTL MARINE CONTRACTORLIMITED
Hong KongHong KongShipping50.00%Equity methodAssociatesCCCC Marine Engineering &Technology Research Center Co., Ltd.
Shanghai
Pudong New Area,Shanghai
Marine technologydevelopment andconsulting
25.00%Equity method
CCCC Estate Yixing Co., Ltd. JiangsuWuxi, Jiangsu
Real estatedevelopment
20.00%Equity method
ZPMC Changzhou Coatings Co., Ltd.Jiangsu
Changzhou,
Jiangsu
Paint manufacture20.00%Equity methodCCCC Financial Leasing Co., LtdShanghai
Pudong New Area,
Shanghai
Finance lease9.00%Equity methodCCCC Yancheng ConstructionDevelopment Co., Ltd.
JiangsuYancheng, Jiangsu
Engineering project
construction
25.00%Equity method
Suzhou Chuanglian Electric Drive Co.,Ltd.
JiangsuSuzhou, Jiangsu
Electric equipment
manufacturing
20.00%Equity method
China Communications ConstructionUSA Inc.
USAUSA
Port, channel,highway and bridge
construction
24.00%Equity method
CCCC South American RegionalCompany SARL
USAUSA
Port, channel,highway and bridge
construction
17.00%Equity method
ZPMC Southeast Asia Pte. Ltd.SingaporeSingaporeTrade sales40.00%Equity methodShanghai Ocean EngineeringEquipment Manufacturing InnovationCenter Co., Ltd.
ShanghaiChina
Development ofocean engineeringtechnology
8.97%Equity method
Shanghai Xingyi ConstructionTechnology Co., Ltd.
ShanghaiShanghai
Buildingengineering
30.00%Equity method
CCCC Xiongan Urban ConstructionDevelopment Co., Ltd.
HebeiXiongan, Hebei
Engineering project
construction
15.00%Equity method
Description of the di?erence between shareholding ratio and proportion of voting rights in joint venture or associates:
NoneBasis for holding less than 20% of voting rights but having signicant inuence, or holding 20% or more of voting rightsbut not having signicant inuence:
None
163163
2022
(2) Main nancial information of major joint ventures:
□Applicable √Not applicable
(3) Main nancial information of major associates:
√Applicable □Not applicable
Unit: Yuan Currency: CNYDecember 31, 2022/Amountincurred in the current period
December 31, 2021/Amount incurred in
the previous periodCCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., LtdCurrent assets24,850,249,86822,914,185,259Non-current assets29,221,247,21428,677,031,798Total assets54,071,497,08251,591,217,057Current liabilities-20,646,954,425-19,964,704,415Non-current liabilities-21,547,988,147-20,832,581,252Total liabilities-42,194,942,572-40,797,285,667Minority equity3,386,004,1403,105,521,230Other equity instrument - Perpetual bond998,000,000998,000,000Shareholders’ equity attributable the parent company7,492,550,3706,690,410,160Share of net assets held based on shareholding ratio674,329,533608,658,400Adjustments-- Goodwill-- Unrealized prots of internal transactions-- OthersBook value of equity investment in associatesFair value of equity investment in associates withpublic o?er
674,329,533608,658,400Operating revenue3,877,175,2033,366,005,756Financial expenses-interest income14,910,30718,371,285Financial expenses - interest expenses2,936,3993,384,524Income tax expenses342,767,440253,999,095Net prot1,057,340,236748,652,808Net prot from discontinuing operationNet of tax of other comprehensive income6,950,951-1,549,636Other comprehensive incomeTotal comprehensive income1,064,291,187747,103,172Total comprehensive income attributable to the parentcompany
802,140,210565,906,200Dividends distributed115,455,199Including: dividends distributed to investors of otherequity instruments
36,500,000Dividends received from associates this yearOther descriptionNone
164164
(4) Summary of nancial information of insignicant joint ventures and associates
√Applicable □Not applicable
Unit: Yuan Currency: CNYDecember 31, 2022/Amountincurred in the current period
December 31, 2021/Amountincurred in the previous
periodJoint ventures:
Total book value of investment365,964,953324,062,553Total number of following items by shareholding ratio-- Net prot76,902,40051,800,590-- Other comprehensive income-- Total comprehensive income76,902,40051,800,590Associates:
Total book value of investment962,585,436909,000,306Total number of following items by shareholding ratio-- Net prot28,454,99515,736,271-- Other comprehensive income20,118,31010,843,872-- Total comprehensive income48,573,30526,580,143Other descriptionNone
(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 Signicant joint operation
□Applicable √Not applicable
5 Equity in structured entities not included in the scope of consolidated nancial statements
Description of structured entities not included in the scope of consolidated nancial statements:
□Applicable √Not applicable
6 Others
□Applicable √Not applicable
X. Risks related to nancial instruments
√Applicable □Not applicable
1 Classication of nancial instrumentsThe book values of various nancial instruments on the balance sheet date:
165165
2022
2022Financial assets
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured at
fair value through the othercomprehensive income
TotalStandardDesignatedStandardDesignatedMonetary funds--2,397,047,713--2,397,047,713Held-for-trading nancialassets
877,483,342----877,483,342Notes receivable--56,114,657--56,114,657Receivables nancing---439,912,428-439,912,428Accounts receivable--7,193,649,855--7,193,649,855Other receivables--995,545,297--995,545,297Non-current assets duewithin one year
--900,213,411--900,213,411Investment in other equityinstruments
---73,475,61973,475,619Long-term receivables--2,402,265,565--2,402,265,565
877,483,342-13,944,836,498439,912,42873,475,61915,335,707,887
Financial liabilities
Financial liabilities measured at fairvalue through the current prot or loss
Financial liabilitiesmeasured atamortized cost
TotalStandardDesignatedShort-term borrowings--1,793,682,9521,793,682,952Notes payable--5,401,258,8975,401,258,897Accounts payable--7,255,123,3347,255,123,334Other payables--1,299,724,8751,299,724,875Non-current liabilities due within one year--6,956,741,6506,956,741,650Long-term borrowings--21,019,572,64621,019,572,646Long-term payables--1,931,340,7341,931,340,734
--45,657,445,08845,657,445,088
The book values of various nancial instruments on the balance sheet date: (continued)2021Financial assets
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured at
fair value through the other
comprehensive income
TotalStandardDesignatedStandardDesignatedMonetary funds--4,571,837,584--4,571,837,584Held-for-trading nancialassets
1,153,533,922----1,153,533,922Notes receivable--3,979,800--3,979,800Receivables nancing---245,408,260-245,408,260
166166
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured atfair value through the other
comprehensive income
TotalStandardDesignatedStandardDesignatedAccounts receivable--6,448,850,756--6,448,850,756Other receivables--940,522,896--940,522,896Non-current assets duewithin one year
--1,437,034,591--1,437,034,591Investment in other equityinstruments
----66,280,04566,280,045Long-term receivables--2,674,407,383--2,674,407,383
1,153,533,922-16,076,633,010245,408,26066,280,04517,541,855,237Financial liabilities
Financial liabilities measured at fairvalue through the current prot or loss
Financial liabilitiesmeasured at amortized
cost
TotalStandardDesignatedShort-term borrowings--5,977,692,3675,977,692,367Notes payable--4,160,666,8004,160,666,800Accounts payable--6,966,472,6396,966,472,639Other payables--394,564,205394,564,205Non-current liabilities due within one year--2,516,974,8302,516,974,830Long-term borrowings--24,943,760,95524,943,760,955Long-term payables--2,163,591,1492,163,591,149
--47,123,722,94547,123,722,9452 Transfer of nancial assets
Transferred nancial assets derecognized as a whole but involved continuouslyAs at December 31, 2022, the book value of the bank acceptance bill given by the Group upon endorsement to thesupplier for accounts payable settlement amounted to RMB 574,174,330 (December 31, 2021: RMB 1,075,578,905). Asat December 31, 2022, the maturity term of such bill was 1 - 12 months. In accordance with the relevant provisions of theNegotiable 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 ows that continue to be involved were equal to the book value. The Groupconsidered that the fair value with continuous involvement was insignicant.In 2022, the Group recognized the loss of RMB 759,178 on the date of transfer of the above nancial assets (2021: lossof RMB 3,407,760).The Group had no income or expense which had been recognized for the current year or accumulativelyas it had been derecognized as a whole but continued to be involved in the financial assets. The endorsement of bankacceptance bill receivable happened in this year evenly.3 Financial instrument risksVarious nancial instrument risks the Group faces during the routine activities mainly include the credit risk, liquidityrisk and market risk (including the exchange rate risk and interest rate risk). Main nancial instruments of the Group includethe monetary funds, equity investment, borrowings, notes receivable, accounts receivable, accounts receivable nancing,contract assets, long-term receivables, notes payable and accounts payable.The Group’s overall risk management plan is targeted at the unpredictability of nancial market, trying to minimize thepotential adverse inuence on the Group’s nancial results.
167167
2022Credit riskThe Group only trade with the authorized third parties in good standing. Credit risks are managed in a centralizedmanner by customer/counterpart, geographic region and industry. As the Group’s customers of accounts receivable andlong-term receivables are widely dispersed across sectors and industries, there is no signicant credit risk concentrationwithin 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 nancing and derivative nancial instruments are banks in goodstanding and having relatively higher credit rating, these nancial instruments have low credit risk.Other financial assets of the Group include commercial acceptance bill, accounts receivable, other receivables andlong-term receivables, the credit risks of these nancial assets and contract assets are from the counterpart’s default, andthe 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' nancialpositions, the possibility of obtaining guarantees from the third party, credit records and other factors such as the currentmarket conditions, evaluates the credit qualifications of customers and set the credit period accordingly. The Group willmonitor customers’ credit records periodically; as for the customers with bad credit records, the Group will take measures,such as requesting a payment in writing, shortening the credit period or canceling the credit term, to ensure that the Group'soverall credit risks are within the controllable scope.
Judgment criteria for signicant increase in credit risk
On each balance sheet date, the Group will evaluate the credit risks of relevant nancial instruments to conrm whetherthey have had significant increase or not after the initial recognition. On such confirmation, the Group will consider thereasonable and well-founded information which can be obtained without paying unnecessary surcharge or e?ort, includingthe information on qualitative and quantitative analysis based on the Group’s historical date, external credit risk rating andperspectiveness. Based on the individual financial instrument or portfolio of financial instruments with similar credit riskcharacteristics, the Group determines the changes in default risk in nancial instruments during the estimated duration bycomparing the default risks in nancial 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 nancialinstrument has had signicant 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 nancial change, or prepares the list of warning customers.
Denition of assets with credit impairment
In order to determine whether there is credit impairment, the Group adopts a denition standard to keep pace with theinternal credit risk management target regarding relevant nancial instruments, and takes the quantitative and qualitativeindicators into account. The Group mainly considers the following factors on evaluating whether the debtor has had creditimpairment:
(1) The issuer or the debtor su?ers signicant nancial di?culties;
(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 nancial reorganization;
(5) The active market of such nancial assets disappears due to the issuer or the debtor’s nancial di?culty;
(6) A nancial asset is purchased or generated through the substantial discount, and such discount reects the fact of
credit loss.
The credit impairment of nancial assets may be caused by several events, not just one event which can be individuallyidentied.
Parameters for the measurement of expected credit loss
Based on the information whether the credit risk has had signicant increase or there is credit impairment, the Groupmakes the provision for impairment of expected credit losses of various assets for 12 months or the entire duration. Keyparameters for the measurements of expected credit loss include the probability of default, loss given default and exposureat default. Considering the quantitative analysis on historical statistical data (including the rating of the counterpart, way ofguarantee and category of collateral) and prospective information, the Group builds models for probability of default, lossgiven default and exposure at default.
168168
Relevant denitions:
(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, addingthe prospective information to reect 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 di?erent, the loss given defaultmay also be di?erent. The loss given default refers to the percentage of the risk exposure loss at default, calculated basedon 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 ofexpected credit loss. Through the historical data analysis, the Group identies the key economic indicators a?ecting thecredit risks in various types of business and the expected credit loss.The impact of these economic indicators on the probability of default and the loss given default is di?erent for di?erenttype of business. In such course, the Group makes the reference to the authoritative predictive values, expect theseeconomic indicators based on results of those values, and determine the impact of these economic indicators on theprobability of default and the loss given default.2022The maximum risk exposure and the year-end classication of credit risk degrees regarding the Group’s nancial assetsand contract assets are as follows:
Expected credit lossover the next 12 months
Expected credit loss in the entire lifecycle
TotalStage IStage IIStage IIISimple methodMonetary funds2,397,047,713---2,397,047,713Held-for-trading nancial assets877,483,342---877,483,342Notes receivable56,114,657---56,114,657Accounts receivable---7,193,649,8557,193,649,855Contract assets---3,243,073,1363,243,073,136Receivables nancing439,912,428---439,912,428Other receivables667,029,58297,751,424230,764,291-995,545,297Non-current assets due within one year900,213,411---900,213,411Other non-current assets---4,246,061,2114,246,061,211Long-term receivables2,402,265,565---2,402,265,565
7,740,066,69897,751,424230,764,29114,682,784,20222,751,366,615
2021
Estimated credit loss
in future 12 months
Estimated credit loss in the entire lifecycle
TotalStage IStage IIStage IIISimple methodMonetary funds4,571,837,584---4,571,837,584Held-for-trading nancial assets1,153,533,922---1,153,533,922Notes receivable3,979,800---3,979,800Accounts receivable---6,448,850,7566,448,850,756Contract assets---1,971,455,8501,971,455,850Receivables nancing245,408,260---245,408,260Other receivables665,440,43144,318,174230,764,291-940,522,896Non-current assets due within one year1,437,034,591---1,437,034,591Other non-current assets---3,723,160,4703,723,160,470Long-term receivables2,674,407,383---2,674,407,383
10,751,641,97144,318,174230,764,29112,143,467,07623,170,191,512
169169
2022Liquidity riskSubsidiaries within the Group are responsible for their own cash-flow prospects. The financial section of the heado?ce continues to monitor the short-term and long-term capital demands at the group level after collecting the cash owsprospects of all subsidiaries, to guarantee the sufficient cash reserve and cashable securities. Meanwhile, the financialsection of the head office continues to monitor the financial and non-financial indicators prescribed in credit-grantingagreements and loan agreements, to ensure that the Group can get su?cient line of credit from major nancial 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 onundiscounted contracted cash ows (including principal and interest):
2022
2022Within 1 year1-2 years2-5 yearsOver 5 yearsTotalShort-term borrowings 1,828,151,415 - - - 1,828,151,415Notes payable 5,401,258,897 - - - 5,401,258,897Accounts payable 7,255,123,334 - - - 7,255,123,334Other payables1,299,724,875 - - - 1,299,724,875Non-current liabilities due within oneyear
7,108,829,479 - - - 7,108,829,479Long-term borrowings - 8,910,688,144 11,306,743,678 2,077,872,630 22,295,304,452Long-term payables - 746,492,462 636,721,312 848,481,954 2,231,695,728
22,893,088,0009,657,180,60611,943,464,9902,926,354,58447,420,088,1802021
2021Within 1 year1-2 years2-5 yearsOver 5 yearsTotalShort-term borrowings6,039,107,924---6,039,107,924Notes payable4,160,666,800---4,160,666,800Accounts payable6,966,472,639---6,966,472,639Other payables409,527,645---409,527,645Non-current liabilities due within oneyear
2,629,217,287---2,629,217,287Long-term borrowings-11,094,362,06413,679,165,7441,483,886,99926,257,414,807Long-term payables-1,094,905,975619,424,9361,055,544,1852,769,875,096
20,204,992,29512,189,268,03914,298,590,6802,539,431,18449,232,282,198
Market riskInterest rate riskThe Group’s interest rate risk is mainly from such long-term interest-bearing liabilities as long-term bank borrowings andlong-term payables. Floating-rate nancial liabilities expose the Group to cash ow interest rate risk while xed-rate nancialliabilities expose the Group to fair value interest rate risk. The Group determines the relative proportion of contracts withxed interest rate and contracts with oating interest rate according to the current market environment. As at December 31,2022, the Group’s long-term interest-bearing liabilities mainly were the oating rate contracts priced in USD, and the xedrate contracts priced in RMB.
The market interest rate uctuating risks that the Group encounters are mainly relevant to the long-term liabilities wherethe interest is calculated at the oating interest rate.The nance department in the headquarters of the Group continues monitoring and controlling the interest rate level ofthe Group. The increase in interest rate will increase the costs of the new interest-bearing debts and the interest expensesof interest-bearing debts failing to be paid up by the Group and subject to the interest calculation at oating interest rate,and will, signicantly and adversely, a?ect the Group's nancial results; the management will control partial interest rate riskbased on the newest market situation through the swap contract and other interest rate swap arrangements. In 2021 and2022, the Group had no interest rate swap arrangement.
170170
The following table shows the sensitivity analysis of the interest rate risk, reecting the e?ect of the reasonable andpossible changes in the interest rate on net prot or loss (through the impact on loan with oating interest rate) and the netamount of other comprehensive income after tax, based on the assumption of no change in other variables.
2022
Base pointIncrease / (Decrease)
Net prot or lossIncrease/(Decrease)
Net of tax of other comprehensiveincome Increase/(Decrease)
Total shareholders' equity
Increase / (Decrease)RMB100(26,340,273)-(26,340,273)RMB(100)26,340,273-26,340,273
2021
Base pointIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensiveincome Increase / (Decrease)
Total shareholders' equityIncrease / (Decrease)RMB100(28,254,774)-(28,254,774)RMB(100)28,254,774-28,254,774
Exchange rate riskThe Group is exposed to transactional exchange rate risk. Such risks are due to sales or purchases made by theoperating 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 assetsand liabilities and future foreign currency transactions that have been recognized by the Group (foreign currency assets andliabilities and foreign currency transactions are priced mainly in USD). The nance department of the Headquarters of theGroup is responsible for supervising the scale of the Group's foreign currency transactions and foreign currency assets andliabilities to minimize the foreign exchange risks.
The following table is a sensitivity analysis of exchange rate risk, reecting the assumption that all other variables willremain the same, when the USD exchange rate changes reasonably and possibly, it will a?ect the net prot or loss (due tothe change in fair value of monetary assets and liabilities) and other comprehensive income, net of tax (due to the change infair value of forward foreign exchange contract).
2022
USD exchange rateIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensiveincome Increase / (Decrease)
Total shareholders' equityIncrease / (Decrease)RMB appreciationagainst USD
1%12,823,427-12,823,427RMB depreciationagainst USD
-1%(12,823,427)-(12,823,427)2021
USD exchange rateIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensive
income Increase / (Decrease)
Total shareholders' equity
Increase / (Decrease)RMB appreciationagainst USD
1%13,174,484-13,174,484RMB depreciationagainst USD
-1%(13,174,484)-(13,174,484)
Price risk of equity instrument investmentThe price risk of equity instrument investment refers to the risk that the fair value of equity securities decreases dueto the change of stock index level and individual securities value. As at December 31, 2022, the Group was exposed tothe price risk of equity instrument investment arising from the individual equity instrument investment classied as equityinstrument investment measured at fair value through the current profit or loss. The listed equity instrument investmentheld by the Group is listed on the stock exchanges of Shanghai, Shenzhen and Hong Kong, and measured at the marketquotation on the balance sheet date.
171171
2022The market stock indexes of the following stock exchanges at the closing of the trading day closest to the balance sheetdate, as well as their respective highest and lowest closing points in the year:
At the end of 2022Highest / lowest in 2022At the end of 2021Highest / lowest in 2021Shanghai - A-share index3,2383,872/3,0013,8143,912/3,472Shenzhen - A-share index2,0672,661/1,8042,6482,691/2,229Hong Kong - Hang Seng Index19,78125,051/14,59723,39831,183/22,665The following table shows the sensitivity of the Group's net prot or loss to the change of 1% of the fair value of equityinstrument investment (based on the book value on the balance sheet date) under the assumption that all other variablesremain unchanged.2022
Book valueof equityinstrumentinvestment
Increase /(decrease)in net protor loss
Increase / (decrease)in net of tax of other
comprehensive
income
Increase /(decrease) in totalshareholders'equityEquity instrument investmentShanghai - equity instrument investment measured at fairvalue through the current prot or loss
40,132,122341,123-341,123Shenzhen - equity instrument investment measured at fairvalue through the current prot or loss
200,522,5821,704,442-1,704,442Hong Kong - equity instrument investment measured at fairvalue through the current prot or loss
628,390,3625,247,060-5,247,060Investment in unlisted equity instruments measured at fairvalue- Equity instrument investment measured at fair value throughthe other comprehensive income
73,475,619-624,543624,5432021
Book value
of equityinstrumentinvestment
Increase /(decrease)in net prot
or loss
Increase / (decrease)in net of tax of othercomprehensive
income
Increase /(decrease) in total
shareholders'
equityEquity instrument investmentShanghai - equity instrument investment measured at fairvalue through the current prot or loss
72,893,037619,591-619,591Shenzhen - equity instrument investment measured at fairvalue through the current prot or loss
421,346,6083,581,446-3,581,446Hong Kong - equity instrument investment measured at fairvalue through the current prot or loss
650,855,9995,434,648-5,434,648Investment in unlisted equity instruments measured at fairvalue- Equity instrument investment measured at fair value throughthe other comprehensive income
66,280,045-563,380563,380
4 Capital management
The Group’s objectives of capital management policy are to safeguard the Group’s ability to continue as a going concernin order to provide returns for shareholders and benets for other stakeholders and to maintain an optimal capital structure toreduce 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.
172172
The total capital of the Group is the shareholders' equity as listed in the consolidated balance sheet. The Group is notsubject to external mandatory capital requirements and makes use of the asset-liability ratio to monitor capital. This ratio iscalculated by the net debt divided by total capital. The net debt is the total borrowing (including short-term borrowings listedin the consolidated balance sheet, other non-current liabilities due within one year (excluding lease liabilities), long-termborrowings, other payables and interest-bearing liabilities in long-term payables minus cash and cash equivalents). The totalcapital 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:
20222021Debt ratio63%64%
XI. Fair value disclosure
1 Ending fair value of assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Ending fair valueFair valuemeasurement
at level 1
Fair valuemeasurementat level 2
Fair valuemeasurementat level 3
TotalI. Continuous fair value measurement(I) Held-for-trading nancial assets869,045,0648,438,278877,483,342
1. Financial assets measured at fair value through the current prot or loss869,045,0648,438,278877,483,342
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative nancial assets8,438,2788,438,278
(4) Equity of listed companies869,045,064869,045,064
2. Financial assets designated to be measured at fair value through the
current prot or loss
(1) Debt instrument investment
(2) Equity instrument investments
(II) Other debtinvestment(III) Investment in other equity instruments73,475,61973,475,619(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 nancing439,912,428439,912,428Total assets measured with continuous fair value continuously869,045,064439,912,42881,913,8971,390,871,389(VI) Held-for-trading nancial liabilities
1. Financial liabilities measured at fair value through current prot or loss
Including: Trading bonds issued
Derivative nancial liabilitiesOthers
2. Financial liabilities designated to be measured at fair value through the
current prot or lossTotal liabilities measured with continuous fair value continuouslyII. Non-continuous fair value measurement(I) Assets held for saleTotal assets not continuously measured at fair valueTotal liabilities not continuously measured at fair value
173173
20222 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 continuousand 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 nancial instrument, the Group shall adopt the quoted price in the activemarket to determine the fair value thereof; where there is no active market traded for a nancial instrument, the Group shalladopt value appraisal techniques to determine its fair value. The valuation models used are discounted cash ow model andmarket comparable company model. The input value of valuation techniques mainly includes the weighted average cost ofcapital, 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
2022
Valuation technique
Observable input valueNameScopeReceivables nancing439,912,428Discounted cash ow modelSimilar open market lending rate4.4%4 Valuation techniques and the qualitative and quantitative information of important parameters for continuousand non-continuous fair value measurement items at level 3
√Applicable □Not applicable
The signicant and unobservable input value of fair value measurement at Level 3 is as follows:
Fair value in
2022
Valuation technique
Unobservable input valueName
Weighted average/
scopeHeld-for-trading nancial assets8,438,278Discounted cash ow modelWeighted average capital cost11%- equity instrument investments73,475,619
Market comparablecompany model
Liquidity discount28%P/B ratio of comparable company1.3-2.65 For continuous fair value measurement items at level 3, the adjustment information between beginning andending 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 nancial assets and nancial 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, andthe fair value is equal to the book value due to short remaining term.The long-term receivables of the Group are the receivables with oating rate, and the di?erence between the book valueand fair value is small.
174174
As for the long-term borrowings and long-term payables, the book value shall be determined by the future cash owspecied in the contract after discounting according to the interest rate which has comparable credit rating on the market andprovides almost the same cash ow under the same conditions, and the di?erence between the book value and such fairvalue is small.In this year, there was no transfer of fair value measurement of nancial assets and nancial liabilities between level 1and 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:
2022Beginningbalance
Transferintolevel 3
Transferout oflevel 3
Total gains or losses for the current period
PurchaseIssueSaleSettlement
Endingbalance
Assets held at the end of the yearIncluded in prot or loss
Included in othercomprehensive income
Changes in unrealized gains or lossesfor the period included in prot or lossHeld-for-tradingnancialassetsEquityinstrumentinvestments
8,438,278 - - - - - - - - 8,438,278 -Other equityinstruments
66,280,045 - - - 7,195,574 - - - - 73,475,619 -Total74,718,323- - - 7,195,574- - - - 81,913,897-2021Beginning
balance
Transfer
intolevel 3
Transferout oflevel 3
Total gains or losses for the current period
PurchaseIssueSaleSettlement
Endingbalance
Assets held at the end of the yearIncluded in prot or loss
Included in othercomprehensive income
Changes in unrealized gains or lossesfor the period included in prot or lossHeld-for-tradingnancialassetsEquityinstrumentinvestments
8,438,278 - - - - - - - - 8,438,278 -Other equityinstruments
61,505,751 - - - 4,774,294 - - - - 66,280,045 -Total69,944,029- - - 4,774,294- - - - 74,718,323-XII Related parties and related party transactions1 Parent company
√Applicable □Not applicable
Unit: Yuan Currency: CNYParent company
Registration
place
Business nature
Registered
capital
Shareholding ratio in
the Company (%)
Voting ratio in the
Company (%)China CommunicationsConstruction Group Co., Ltd.
Beijing City
Port project contracting andrelated business
5,855,423,8304646
Description of the parent company of the CompanyNoneThe nal controlling party of the Company is the China Communications Construction Group Co., Ltd.Other description:
None
2 Subsidiaries
For details of subsidiaries of the Company, please refer to Note IX (1).
√Applicable □Not applicable
For details of subsidiaries, please refer to Note IX (1).
175175
20223 Joint ventures and associatesFor 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 formedbalance 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 partiesRelationship with related partyChina Communications Construction Company Ltd.Controlled by the same parent companyChina Harbour Engineering Co., Ltd.Controlled by the same parent companyCCCC Finance Company Ltd.Controlled by the same parent companyCCCC Second Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC Second Highway Consultants Co., Ltd.Controlled by the same parent companyCCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Second Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC Third Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Construction Group Co., Ltd. (former: CCCC Fourth Highway Engineering Co., Ltd.)Controlled by the same parent companyCCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Fourth Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC First Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC - SHEC Second Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Railway Construction Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.4 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyThe First Construction Company of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyZhen Hwa Harbour Construction Co., Ltd.Controlled by the same parent companyBeijing Rate Electronic Technology Developing Co., Ltd.Controlled by the same parent companyCCCC Guidu Highway Construction Co., Ltd.Controlled by the same parent companyShanghai Waterway Logistics Co., Ltd.Controlled by the same parent companyShanghai Jiangtian Industrial Co., Ltd.Controlled by the same parent companyShanghai Communications Construction Contracting Co., Ltd.Controlled by the same parent companyShanghai Interlink Road & Bridge Engineering Co., Ltd.Controlled by the same parent companyShanghai Zhensha Longfu Machinery Co., Ltd.Controlled by the same parent companyShanghai China Communications Water Transportation Design & Research Co., Ltd.Controlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyZhenhua Engineering Co., Ltd.Controlled by the same parent companyXiangtan CCCC Infrastructure Investment and Construction Co., Ltd.Controlled by the same parent companyYueyang Chenglingji New Port Co., Ltd.Controlled by the same parent company
176176
Name of other related partiesRelationship with related partyChina Road & Bridge CorporationControlled by the same parent companyChina Highway Engineering Consultants CorporationControlled by the same parent companyChuwa Risheng (Beijing) International Trade Co., Ltd.Controlled by the same parent companyCCCC (Xiamen) Information Co., Ltd.Controlled by the same parent companyCCCC North Industrial Co., Ltd.Controlled by the same parent companyCCCC Highway Consultants Co., Ltd.Controlled by the same parent companyCCCC Highway Bridges National Engineering Research Centre Co., Ltd.Controlled by the same parent companyCCCC Guangzhou Dredging Co., Ltd.Controlled by the same parent companyCCCC International (Hong Kong) Holdings LimitedControlled by the same parent companyCCCC Marine Engineering & Technology Research Center Co., Ltd.Controlled by the same parent companyCCCC East China Investment Co., Ltd.Controlled by the same parent companyCCCC Electrical and Mechanical Engineering Co., Ltd.Controlled by the same parent companyCCCC Infrastructure Maintenance Group Co., Ltd.Controlled by the same parent companyRoad & Bridge East China Engineering Co., Ltd.Controlled by the same parent companyRoad & Bridge South China Engineering Co., LtdControlled by the same parent companyRoad & Bridge International Co., Ltd.Controlled by the same parent companyCCCC Financial Leasing (Guangzhou) Co., Ltd.Controlled by the same parent companyCCCC Financial Leasing Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Shanghai Harbor Engineering Design & Research Institute Co., Ltd.Controlled by the same parent companyCCCC Shanghai Dredging Co., Ltd.Controlled by the same parent companyCCCC Shanghai Channel Equipment Industry Co., Ltd.Controlled by the same parent companyCCCC Shanghai Equipment Engineering Co., Ltd.Controlled by the same parent companyCCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.Controlled by the same parent companyCCCC National Engineering Research Center of Dredging Technology and Equipment Co., Ltd.Controlled by the same parent companyCCCC Water Transportation Planning and Design Institute Co., Ltd.Controlled by the same parent companyNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Tunnel Engineering Company LimitedControlled by the same parent companyTianjin International Marine Engineering Co., Ltd. (former: Binhai Environmental ProtectionDredging Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.)
Controlled by the same parent companyCCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.Controlled by the same parent companyCCCC Tianjin Industry and Trade Co., Ltd.Controlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyCCCC Xi’an Road Construction Machinery Co., Ltd.Controlled by the same parent companyCCCC Xingyu Technology Co., Ltd.Controlled by the same parent companyCCCC Xiongan Financial Leasing Co., Ltd.Controlled by the same parent companyCCCC Yancheng Construction Development Co., Ltd.Controlled by the same parent companyNo. 6 Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC First Highway Fifth Engineering Co., Ltd.Controlled by the same parent companyCCCC First Highway Electrication Engineering Co., Ltd.Controlled by the same parent companyChongqing Yongjiang Expressway Investment and Construction Co., Ltd. of FHEC of CCCCControlled by the same parent companyInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyHarbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.Controlled by the same parent company
177177
2022Name of other related partiesRelationship with related partyDaHua Technology Co., Ltd.Controlled by the same parent companyShanghai Donghua Construction Co., Ltd.Controlled by the same parent companyCCCC Third Harbor Engineering Co., Ltd. Xiamen BranchControlled by the same parent companyCCCC Dredging (Group) Co., Ltd.Controlled by the same parent companyNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Leasing Jiahua No.2 Co., Ltd.Controlled by the same parent companyCCCC Leasing Jiahua No.1 Co., Ltd.Controlled by the same parent companyCNPC & CCCC Petroleum Sales Co., Ltd.Controlled by the same parent companyFriede & Goldman, Llc.Controlled by the same parent companyCCCC (Xiamen) Information Co., Ltd.Controlled by the same parent companyChina Communications Information Technology Group Co., Ltd.Controlled by the same parent companyRoad and Bridge Construction Chongqing Fengfu Expressway Development Co., Ltd.Controlled by the same parent companyRoad and Bridge Construction Chongqing Fengshi Expressway Development Co., Ltd.Controlled by the same parent companyCCCC Chenzhou Road Construction Machinery Co., Ltd.Controlled by the same parent companySanYa Phoenix Island International Cruise Terminal Development Co., Ltd.Controlled by the same parent companyCCCC Capital Holdings Co., Ltd.Controlled by the same parent companyCCCC (Tianjin) Ecological and Environmental Protection Design Institute Co., Ltd.Controlled by the same parent companyBeijing BLDJ Landscape Architecture Institute Co., LTD.Controlled by the same parent companyChongqing Zhongwan Expressway Co., Ltd.Controlled by the same parent companyJiangsu CCCC Green Energy Photovoltaic Technology Co., Ltd.Controlled by the same parent companySichuan Road & Bridge Group Co., Ltd.Controlled by the same parent companyCCCC (Zhengzhou) Construction Co., Ltd.Controlled by the same parent companyTianjin Harbour Engineering Quality Inspection Center Co., Ltd.Controlled by the same parent companyCCCC Haifeng Wind Power Development Co., Ltd.Controlled by the same parent companyAirport Construction Engineering Co., Ltd.Controlled by the same parent companyJiujiang Education Consulting Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyJiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC-SHEC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC-SHEC Fifth Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC-SHEC Railway Construction Co., Ltd.Controlled by the same parent companyCCCC Xiongan Urban Construction Development Co., Ltd. Controlled by the same parent companyCCCC Northeast Investment Co., Ltd.Controlled by the same parent companyCCCC Worldcom (Beijing) Heavy Industries Co., Ltd.Controlled by the same parent companyXiamen Jiehang Engineering Testing Technology Co., Ltd.Controlled by the same parent companyChina Highway Vehicle & Machinery Co., Ltd.Controlled by the same parent companyCCCC Leasing (Shandong) Co., Ltd. Controlled by the same parent companyCCCC Third Harbor Consultants Co., Ltd.Controlled by the same parent company
Other descriptionNone
178178
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: CNYRelated partyContent of transaction
Amountincurred inthe currentperiod
Approvedtransaction
limit (ifapplicable)
Exceedingtransactionlimit (ifapplicable)
Amount incurredin the previousperiodNo.2 Engineering Co., Ltd. of CCCC Third Harbor EngineeringCo., Ltd.
Receipt of labor services452,903,273395,812,379CCCC Shanghai Equipment Engineering Co., Ltd.Receipt of labor services368,095,891267,095,811CCCC First Highway Engineering Co., Ltd.Receipt of labor services293,136,519300,665,193CCCC Second Harbor Engineering Co., Ltd.Receipt of labor services227,255,981132,279,839CCCC Third Highway Engineering Co., Ltd.Receipt of labor services220,317,269166,239,672CCCC Tianjin Dredging Co., Ltd.Receipt of labor services152,397,803300,755,835CCCC Third Harbor Engineering Co., Ltd.Receipt of labor services134,197,024164,243,707Road & Bridge East China Engineering Co., Ltd.Receipt of labor services50,674,337129,730,802ZPMC Southeast Asia Pte. Ltd.Receipt of labor services40,615,972114,109,010CCCC Construction Group Co., Ltd. (former: CCCC FourthHighway Engineering Co., Ltd.)
Receipt of labor services28,301,8875,299,846China Communications Information Technology Group Co., Ltd.Receipt of labor services18,659,881Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.Receipt of labor services14,150,943CCCC Shanghai Dredging Co., Ltd.Receipt of labor services9,147,073Shanghai Communications Construction Contracting Co., Ltd.Receipt of labor services7,018,983China Road & Bridge CorporationReceipt of labor services4,281,6215,897,691Shanghai China Communications Water Transportation Design &Research Co., Ltd.
Receipt of labor services4,139,151CCCC Second Highway Consultants Co., Ltd.Receipt of labor services3,475,4621,329,962CCCC First Harbor Engineering Co., Ltd.Receipt of labor services2,321,37310,475,623Shanghai Waterway Logistics Co., Ltd.Receipt of labor services1,492,658856,132Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
Receipt of labor services1,344,340781,386Shanghai Interlink Road & Bridge Engineering Co., Ltd.Receipt of labor services1,159,917CNPC & CCCC Petroleum Sales Co., Ltd.Receipt of labor services965,323CCCC Third Harbor Consultants Co., Ltd.Receipt of labor services939,04147,170ZPMC Mediterranean Liman Makinalari Ticaret Anonim SirketiReceipt of labor services885,4466,424,633CCCC Xingyu Technology Co., Ltd.Receipt of labor services861,4262,049,877Beijing BLDJ Landscape Architecture Institute Co., LTD.Receipt of labor services366,037CCCC Second Harbor Consultants Co., Ltd.Receipt of labor services230,0631,150,316CCCC (Xiamen) Information Co., Ltd .Receipt of labor services45,2175,209CCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.Receipt of labor services19,476,868CCCC First Harbor Consultants Co., Ltd.Receipt of labor services7,528,374ZPMC Changzhou Coatings Co., Ltd.Receipt of labor services2,973,451CCCC Shanghai Harbor Engineering Design & Research InstituteCo., Ltd.
Receipt of labor services1,258,302CCCC Marine Engineering & Technology Research Center Co.,Ltd.
Receipt of labor services692,025CCCC Water Transportation Planning and Design Institute Co.,Ltd.
Receipt of labor services73,943China Communications Construction Company Ltd.Receipt of labor services27,080Shanghai Jiangtian Industrial Co., Ltd.Receipt of labor services8,332CCCC Shanghai Equipment Engineering Co., Ltd.Purchase of goods370,483,873381,457,531ZPMC Changzhou Coatings Co., Ltd.Purchase of goods131,829,860122,100,652
179179
2022
Related partyContent of transaction
Amountincurred inthe currentperiod
Approvedtransactionlimit (ifapplicable)
Exceedingtransaction
limit (ifapplicable)
Amount incurredin the previousperiodCNPC & CCCC Petroleum Sales Co., Ltd.Purchase of goods53,399,04721,563,726CCCC Third Harbor Engineering Co., Ltd.Purchase of goods37,699,113CCCC Third Harbor Consultants Co., Ltd.Purchase of goods31,363,816ZPMC Southeast Asia Pte. Ltd.Purchase of goods28,685,372Shanghai Jiangtian Industrial Co., Ltd.Purchase of goods13,419,61211,826,245CCCC Water Transportation Planning and Design Institute Co.,Ltd.
Purchase of goods8,336,283Chuwa Risheng (Beijing) International Trade Co., Ltd.Purchase of goods7,280,458Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC FourthHarbor Engineering Co., Ltd.
Purchase of goods6,318,584Shanghai Zhensha Longfu Machinery Co., Ltd.Purchase of goods5,974,56015,863Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
Purchase of goods4,867,257China Communications Information Technology Group Co., Ltd.Purchase of goods4,001,152CCCC Tianjin Industry and Trade Co., Ltd.Purchase of goods3,899,5301,866,300CCCC Fourth Harbor Consultants Co., Ltd.Purchase of goods3,623,894ZPMC Mediterranean Liman Makinalari Ticaret Anonim SirketiPurchase of goods2,347,434CCCC Highway Bridges National Engineering Research CentreCo., Ltd.
Purchase of goods1,189,381CCCC (Xiamen) Information Co., Ltd. Purchase of goods1,022,057152,192Xing An Ji Engineering Co., Ltd. of CCCC Third HarborEngineering Co., Ltd.
Purchase of goods775,633CCCC Xingyu Technology Co., Ltd.Purchase of goods266,896347,434Shanghai Waterway Logistics Co., Ltd.Purchase of goods33,03322,697CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
Purchase of goods22,472,100CCCC Shanghai Channel Equipment Industry Co., Ltd.Purchase of goods21,777,619CCCC Second Highway Engineering Co., Ltd.Purchase of goods3,161,250Friede & Goldman, Llc.Purchase of goods2,285,348CCCC (Xiamen) Information Co., Ltd.Purchase of goods990,028Chongqing Yongjiang Expressway Investment and ConstructionCo., Ltd. of FHEC of CCCC
Purchase of goods286,716China Communications Construction Company Ltd.Purchase of goods256,441Shanghai China Communications Water Transportation Design &Research Co., Ltd.
Purchase of goods79,565No.1 Engineering Co., Ltd. of CCCC First Harbor EngineeringCo., Ltd.
Purchase of goods77,324
Sales of goods/rendering of labor services
√Applicable □Not applicable
Unit: Yuan Currency: CNYRelated partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.Sales of goods/other inows1,290,408,439371,622,372China Road & Bridge CorporationSales of goods/other inows447,741,5071,076,133,465China Harbour Engineering Co., Ltd.Sales of goods/other inows441,437,76613,183China Harbour Engineering Co., Ltd.Sales of goods/other inows407,944,621464,677,293CCCC Haifeng Wind Power Development Co., Ltd.Sales of goods/other inows374,901,683No.1 Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
Sales of goods/other inows213,716,814No.2 Engineering Co., Ltd. of CCCC Third HarborEngineering Co., Ltd.
Sales of goods/other inows208,387,950CCCC First Harbor Engineering Co., Ltd.Sales of goods/other inows167,694,228658,454,907
180180
Related partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodCCCC Third Highway Engineering Co., Ltd.Sales of goods/other inows93,106,45655,241,845CCCC Fourth Harbor Engineering Co., Ltd.Sales of goods/other inows45,044,248CCCC Second Highway Engineering Co., Ltd.Sales of goods/other inows36,106,344222,256,873CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.Sales of goods/other inows32,668,69058,852,099China Communications Construction Company Ltd.Sales of goods/other inows28,946,17822,832,895Road & Bridge International Co., Ltd.Sales of goods/other inows10,805,54812,612,240CCCC - SHEC Second Highway Engineering Co., Ltd.Sales of goods/other inows8,060,0132,770,866CCCC Tianjin Industry and Trade Co., Ltd.Sales of goods/other inows6,767,1819,416,830CCCC Second Harbor Engineering Co., Ltd.Sales of goods/other inows3,669,477108,882,731ZPMC Southeast Asia Pte. Ltd.Sales of goods/other inows2,611,7257,916,694Road and Bridge Construction Chongqing FengfuExpressway Development Co., Ltd.
Sales of goods/other inows2,335,010934,633Road and Bridge Construction Chongqing FengshiExpressway Development Co., Ltd.
Sales of goods/other inows1,959,278828,665CCCC Tianjin Dredging Co., Ltd.Sales of goods/other inows1,670,63617,322,772Shanghai Jiangtian Industrial Co., Ltd.Sales of goods/other inows1,504,488744,530CCCC Shanghai Dredging Co., Ltd.Sales of goods/other inows1,458,199757,248CCCC Shanghai Equipment Engineering Co., Ltd.Sales of goods/other inows838,967CCCC Construction Group Co., Ltd. (former: CCCC FourthHighway Engineering Co., Ltd.)
Sales of goods/other inows270,4562,148,874ZPMC Changzhou Coatings Co., Ltd.Sales of goods/other inows200,664No.2 Engineering Co., Ltd. of CCCC First Harbor EngineeringCo., Ltd.
Sales of goods/other inows188,679Chongqing Yongjiang Expressway Investment andConstruction Co., Ltd. of FHEC of CCCC
Sales of goods/other inows172,087105,334CCCC (Xiamen) Information Co., Ltd.Sales of goods/other inows166,240362,697China Communications Information Technology Group Co.,Ltd.
Sales of goods/other inows47,83066,835Jiujiang Education Consulting Co., Ltd. of CCCC SecondHarbor Engineering Co., Ltd.
Sales of goods/other inows1,698CCCC Electrical and Mechanical Engineering Co., Ltd.Sales of goods/other inows567,936,071CCCC - SHEC Fourth Highway Engineering Co., Ltd.Sales of goods/other inows60,379,716ZPMC Mediterranean Liman Makinalari Ticaret AnonimSirketi
Sales of goods/other inows3,595,115Friede & Goldman, Llc.Sales of goods/other inows2,346,934Beijing Rate Electronic Technology Developing Co., Ltd.Sales of goods/other inows1,774,844CCCC First Highway Engineering Co., Ltd.Sales of goods/other inows1,387,096CCCC - SHEC Railway Construction Co., Ltd.Sales of goods/other inows1,288,888Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
Sales of goods/other inows702,083CCCC Financial Leasing Co., Ltd.Sales of goods/other inows454,989CCCC Guangzhou Dredging Co., Ltd.Sales of goods/other inows244,956CCCC First Highway Electrication Engineering Co., Ltd.Sales of goods/other inows231,707
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
181181
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: CNYItemAmount incurred in the current periodAmount incurred in the previous periodRemuneration of key management personnel1,5351,540
(8) Other related party transactions
√Applicable □Not applicable
Distribution of dividends to related parties
20222021CCCG75,938,271-CCCC International (Hong Kong) Holdings Limited45,837,792-
121,776,063-
Deposits in (withdrawal of deposits from) related parties
20222021CCCC Finance Company Ltd.(1,600,236,793)1,524,770,252Borrowings from related parties
20222021CCCC Finance Company Ltd.544,000,000100,000,000CCCC Xiongan Financial Leasing Co., Ltd.120,000,000326,000,000
664,000,000426,000,000Interest collected from related parties
20222021Xiangtan CCCC Infrastructure Investment and Construction Co., Ltd.28,423,585-CCCC Finance Company Ltd.672,361229,748
29,095,946229,748
182182
Interest paid to related parties
20222021CCCC Xiongan Financial Leasing Co., Ltd.14,591,87013,874,222CCCC Finance Company Ltd.7,437,55620,356,489CCCC Financial Leasing Co., Ltd.156,3185,918,543CCCC Leasing Jiahua No.1 Co., Ltd.95,4928,795,303CCCC Leasing Jiahua No.2 Co., Ltd.95,4924,131,498CCCC Financial Leasing (Guangzhou) Co., Ltd.-1,713,225
22,376,72854,789,2806 Accounts receivable and payable by related parties (1) Receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemRelated parties
Balance as at December
31, 2022
Balance as at December
31, 2021Bookbalance
Provisionfor bad debt
Bookbalance
Provisionfor bad debtAccounts receivableCCCC Haifeng Wind Power Development Co., Ltd.243,735,000Accounts receivableCCCC Third Harbor Engineering Co., Ltd.211,646,105182,219,562Accounts receivableCCCC First Harbor Engineering Co., Ltd.192,888,613166,044,484Accounts receivableChina Road & Bridge Corporation138,480,71597,208,155Accounts receivable
Jiangsu Longyuan Zhenhua Marine Engineering Co.,Ltd.
119,803,239151,651,546Accounts receivableChina Harbour Engineering Co., Ltd.93,246,9006,926,061Accounts receivableCCCC Electrical and Mechanical Engineering Co., Ltd.86,806,696138,547,709Accounts receivable
No.1 Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
64,841,10052,779,503Accounts receivableCCCC Second Harbor Engineering Co., Ltd.47,380,30797,888,662Accounts receivable
Xiangtan CCCC Infrastructure Investment andConstruction Co., Ltd.
36,599,733Accounts receivable
CCCC Marine Engineering & Technology ResearchCenter Co., Ltd.
23,647,274Accounts receivableCCCC Fourth Harbor Engineering Co., Ltd.26,986,726Accounts receivableZPMC-OTL MARINE CONTRACTOR LIMITED24,248,16822,838,856Accounts receivableChina Communications Construction Company Ltd.20,714,84435,437,005Accounts receivableCCCC First Harbor Consultants Co., Ltd.20,307,00622,829,248Accounts receivableZhenhua Marine Energy (HK) Co., Ltd.17,872,45310,510,025Accounts receivableCCCC Financial Leasing Co., Ltd.16,865,82114,888,332Accounts receivableFriede & Goldman, Llc.16,293,38917,063,248Accounts receivable
Jiangsu CCCC Green Energy Photovoltaic TechnologyCo., Ltd.
14,446,169Accounts receivableCCCC Tianjin Industry and Trade Co., Ltd.13,863,12952,046,271Accounts receivableCCCC - SHEC Fourth Highway Engineering Co., Ltd.13,833,45710,622,056Accounts receivable
CCCC Tianhe Mechanical Equipment ManufacturingCo., Ltd.
13,805,9339,220,004Accounts receivableZPMC Southeast Asia Pte. Ltd.13,486,16519,345,412Accounts receivable
ZPMC Mediterranean Liman Makinalari Ticaret AnonimSirketi
11,282,08410,799,805Accounts receivable
Tianjin International Marine Engineering Co., Ltd.(former: Binhai Environmental Protection DredgingCo., Ltd. of CCCC Tianjin Dredging Co., Ltd.)
8,160,3658,160,365
183183
2022
ItemRelated parties
Balance as at December
31, 2022
Balance as at December
31, 2021Bookbalance
Provisionfor bad debt
Bookbalance
Provisionfor bad debtAccounts receivableCCCC Fourth Harbor Consultants Co., Ltd.7,398,0007,398,000Accounts receivable
No.3 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
7,282,296747,641Accounts receivable
No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
6,137,565Accounts receivableCCCC Second Highway Engineering Co., Ltd.5,546,48719,461,889Accounts receivableCCCC-SHEC Fifth Highway Engineering Co., Ltd.5,031,955Accounts receivable
The First Construction Company of CCCC SecondHarbor Engineering Co., Ltd.
3,750,0004,235,276Accounts receivableCCCC First Highway Engineering Co., Ltd.3,110,3012,391,979Accounts receivable
No. 6 Engineering Co., Ltd. of CCCC First HighwayEngineering Co., Ltd.
3,032,5642,000,000Accounts receivableCCCC - SHEC Second Highway Engineering Co., Ltd.2,479,57875,045Accounts receivable
Road and Bridge Construction Chongqing FengfuExpressway Development Co., Ltd.
2,335,010934,633Accounts receivableSichuan Road & Bridge Group Co., Ltd.2,156,724Accounts receivableShanghai Jiangtian Industrial Co., Ltd.2,014,799432,337Accounts receivableCCCC Third Harbor Consultants Co., Ltd.2,007,45912,771,119Accounts receivableChongqing Zhongwan Expressway Co., Ltd.1,679,281Accounts receivableRoad & Bridge International Co., Ltd.1,143,74811,187,853Accounts receivableCCCC Third Highway Engineering Co., Ltd.1,128,6321,952,749Accounts receivable
Beijing Rate Electronic Technology Developing Co.,Ltd.
891,5171,155,417Accounts receivable
Shanghai Interlink Road & Bridge Engineering Co.,Ltd.
670,4881,900,000Accounts receivableCCCC-SHEC Railway Construction Co., Ltd.656,275Accounts receivable
Road and Bridge Construction Chongqing FengshiExpressway Development Co., Ltd.
601,676828,665Accounts receivable
CCCC Chenzhou Road Construction Machinery Co.,Ltd.
531,658531,658Accounts receivable
No.2 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
417,150417,150Accounts receivableCCCG300,000Accounts receivable
Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
213,349978,404Accounts receivable
No.2 Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
200,000Accounts receivableCCCC Shanghai Equipment Engineering Co., Ltd.168,000232,500Accounts receivableCCCC Tianjin Dredging Co., Ltd.82,800Accounts receivable
CCCC Construction Group Co., Ltd. (former: CCCCFourth Highway Engineering Co., Ltd.)
82,0151,228,228Accounts receivableCCCC Guidu Highway Construction Co., Ltd.63,95163,951Accounts receivableYueyang Chenglingji New Port Co., Ltd.48,68048,680Accounts receivable
Chongqing Yongjiang Expressway Investment andConstruction Co., Ltd. of FHEC of CCCC
36,257105,334Accounts receivable
SanYa Phoenix Island International Cruise TerminalDevelopment Co., Ltd.
33,74033,740Accounts receivableCCCC First Highway Electrication Engineering Co., Ltd.26,407440,118
184184
ItemRelated parties
Balance as at December
31, 2022
Balance as at December
31, 2021Bookbalance
Provisionfor bad debt
Bookbalance
Provisionfor bad debtAccounts receivableCCCC - SHEC Railway Construction Co., Ltd.23,9802,660,549Accounts receivableZPMC ISTANBUL LIMAN MAKINALARI Tic A.S.3,4823,188Accounts receivableChuwa Risheng (Beijing) International Trade Co., Ltd.5,420,000Accounts receivableRoad & Bridge South China Engineering Co., Ltd.3,297,002Accounts receivableCCCC Xi’an Road Construction Machinery Co., Ltd.200,000Receivables nancingCCCC Third Harbor Engineering Co., Ltd.52,661,82334,650,000Receivables nancingCCCC First Harbor Engineering Co., Ltd.51,766,15532,647,622Receivables nancingCCCC Third Highway Engineering Co., Ltd.38,000,000Receivables nancingCCCC Second Highway Engineering Co., Ltd.34,367,3253,000,000Receivables nancingRoad & Bridge International Co., Ltd.22,230,347Receivables nancing
No.1 Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
10,537,27151,736,656Receivables nancingCCCC Tianjin Industry and Trade Co., Ltd.3,498,829Receivables nancing
CCCC First Highway Electrication Engineering Co.,Ltd.
300,000599,796Receivables nancingCCCC-SHEC Railway Construction Co., Ltd.202,412Receivables nancing
Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
63,000Receivables nancingRoad & Bridge East China Engineering Co., Ltd.17,500,000Receivables nancingCCCC Fourth Harbor Engineering Co., Ltd.10,500,000Other receivablesZhenhua Marine Energy (HK) Co., Ltd.164,124,678164,124,678164,124,678164,124,678Other receivablesCCCC First Harbor Engineering Co., Ltd.40,331,08113,413,065Other receivablesCCCC Third Harbor Engineering Co., Ltd.34,863,137Other receivablesChina Road & Bridge Corporation32,174,052Other receivablesCCCC Second Harbor Engineering Co., Ltd.26,080,121Other receivables
Jiangsu Longyuan Zhenhua Marine Engineering Co.,Ltd.
25,033,39023,227,824Other receivables
CCCC National Engineering Research Center ofDredging Technology and Equipment Co., Ltd.
12,167,079Other receivablesCCCC Third Highway Engineering Co., Ltd.11,671,59310,000Other receivablesCCCC Electrical and Mechanical Engineering Co., Ltd.11,230,77740,000Other receivablesRoad & Bridge International Co., Ltd.10,311,354Other receivablesCCCC Xiongan Financial Leasing Co., Ltd.6,000,0004,000,000Other receivablesChina Communications Construction Company Ltd.3,782,9304,220,126Other receivablesCCCC Fourth Harbor Engineering Co., Ltd.3,117,699Other receivablesCCCC First Harbor Consultants Co., Ltd.2,602,610Other receivables
No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
2,116,091Other receivablesCCCC - SHEC Second Highway Engineering Co., Ltd.1,623,738Other receivablesCCCC Second Highway Engineering Co., Ltd.1,611,506153,605Other receivablesCCCC Yancheng Construction Development Co., Ltd.1,600,0001,600,000Other receivablesCCCG1,356,800Other receivables
No.2 Engineering Co., Ltd. of CCCC Third HarborEngineering Co., Ltd.
1,327,942Other receivablesCCCC Fourth Harbor Consultants Co., Ltd.992,576
185185
2022
ItemRelated parties
Balance as at December
31, 2022
Balance as at December
31, 2021Bookbalance
Provisionfor bad debt
Bookbalance
Provisionfor bad debtOther receivables
CCCC Xiongan Urban Construction Development Co.,Ltd.
550,000Other receivablesCCCC Financial Leasing Co., Ltd.206,389Other receivablesCCCC East China Investment Co., Ltd.194,959132,207Other receivables
ZPMC Mediterranean Liman Makinalari Ticaret AnonimSirketi
178,642Other receivablesCCCC Northeast Investment Co., Ltd.152,002Other receivablesChina Harbour Engineering Co., Ltd.138,462101,203Other receivablesShanghai Jiangtian Industrial Co., Ltd.77,552Other receivablesZPMC-OTL MARINE CONTRACTOR LIMITED49,03814,553Other receivablesZPMC Southeast Asia Pte. Ltd.15,165Other receivables
Jiujiang Education Consulting Co., Ltd. of CCCCSecond Harbor Engineering Co., Ltd.
1,800Other receivablesCCCC Capital Holdings Co., Ltd.62,210,484Other receivables
China Communications Information Technology GroupCo., Ltd.
11,713Other receivablesCCCC Shanghai Dredging Co., Ltd.4,400Other receivablesZPMC Changzhou Coatings Co., Ltd.2,157Advances to suppliersRoad & Bridge East China Engineering Co., Ltd.24,847,91714,149,179Advances to suppliersCCCC First Highway Engineering Co., Ltd.16,625,967Advances to suppliersCCCC Third Harbor Consultants Co., Ltd.10,651,75911,850,000Advances to suppliers
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCCFourth Harbor Engineering Co., Ltd.
7,000,000Advances to suppliersCCCC Fourth Harbor Consultants Co., Ltd.4,095,000Advances to suppliers
CCCC Worldcom (Chongqing) Heavy Industries Co.,Ltd.
385,568Advances to suppliersChina Harbour Engineering Co., Ltd.5,000Advances to suppliers
CCCC Third Harbor Engineering Co., Ltd. XiamenBranch
2,000Advances to suppliersCCCC Second Harbor Engineering Co., Ltd.600Advances to suppliersCCCC First Harbor Engineering Co., Ltd.5,500,000Advances to suppliersCCCC Third Harbor Engineering Co., Ltd.11,770Advances to suppliersZPMC Changzhou Coatings Co., Ltd.4,145Contract assets
Jiangsu Longyuan Zhenhua Marine Engineering Co.,Ltd.
605,354,047Contract assetsCCCC First Harbor Engineering Co., Ltd.62,352,92816,790,746Contract assetsCCCC Haifeng Wind Power Development Co., Ltd.48,181,663Contract assetsCCCC Second Harbor Engineering Co., Ltd.30,082,85158,199,415Contract assetsChina Road & Bridge Corporation22,477,34315,314,507Contract assetsCCCC Second Highway Engineering Co., Ltd.21,831,27916,603,220Contract assetsCCCC Third Highway Engineering Co., Ltd.15,018,9122,597,625Contract assets
No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
9,311,494Contract assetsCCCC - SHEC Second Highway Engineering Co., Ltd.4,497,4543,944,683Contract assetsCCCC Third Harbor Engineering Co., Ltd.3,004,3886,049,547Contract assetsSichuan Road & Bridge Group Co., Ltd.2,297,016
186186
ItemRelated parties
Balance as at December
31, 2022
Balance as at December
31, 2021Bookbalance
Provisionfor bad debt
Bookbalance
Provisionfor bad debtContract assetsCCCC Electrical and Mechanical Engineering Co., Ltd.27,477,285Contract assetsCCCC - SHEC Fourth Highway Engineering Co., Ltd.6,211,400Contract assetsChina Communications Construction Company Ltd.3,067,965Contract assetsRoad & Bridge International Co., Ltd.2,131,171Contract assets
The First Construction Company of CCCC SecondHarbor Engineering Co., Ltd.
1,836,207Contract assetsCCCC First Harbor Consultants Co., Ltd.720,513Other non-currentassets
China Harbour Engineering Co., Ltd.16,115,040Other non-currentassets
CCCC Fourth Harbor Engineering Co., Ltd.2,252,212Other non-currentassets
Jiangsu Longyuan Zhenhua Marine Engineering Co.,
Ltd.
4,690,047Other non-currentassets
CCCC First Harbor Engineering Co., Ltd.16,790,746Other non-currentassets
CCCC Second Harbor Engineering Co., Ltd.41,510,434Other non-currentassets
CCCC Second Highway Engineering Co., Ltd.16,516,684Other non-currentassets
Road & Bridge International Co., Ltd.2,131,171Other non-currentassets
China Road & Bridge Corporation15,314,507Other non-currentassets
CCCC Third Highway Engineering Co., Ltd.1,467,889Other non-currentassets
CCCC Third Harbor Engineering Co., Ltd.2,874,326Other non-currentassets
CCCC - SHEC Fourth Highway Engineering Co., Ltd.6,211,400
(2) Payables
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemRelated parties
Ending book
balance
Beginning bookbalanceAccounts payableCCCC Third Harbor Engineering Co., Ltd.331,634,582237,337,752Accounts payableCCCC First Highway Engineering Co., Ltd.259,160,857109,513,338Accounts payableCCCC Third Highway Engineering Co., Ltd.250,106,814171,953,904Accounts payable
CCCC Construction Group Co., Ltd. (former: CCCC Fourth HighwayEngineering Co., Ltd.)
101,897,141174,746,384Accounts payableCCCC Shanghai Equipment Engineering Co., Ltd.83,614,46851,172,227Accounts payableCCCC Second Harbor Engineering Co., Ltd.74,160,316132,281,871Accounts payableZPMC Changzhou Coatings Co., Ltd.43,778,59033,794,779Accounts payableCCCC Tianjin Dredging Co., Ltd.33,225,252Accounts payableRoad & Bridge International Co., Ltd.22,984,931Accounts payableShanghai Communications Construction Contracting Co., Ltd.21,494,83713,844,146Accounts payableCCCC Shanghai Dredging Co., Ltd.20,295,39813,355,089Accounts payableCCCC Second Highway Consultants Co., Ltd.20,038,33218,804,342Accounts payableCNPC & CCCC Petroleum Sales Co., Ltd.18,903,42410,696,813
187187
2022
ItemRelated parties
Ending bookbalance
Beginning book
balanceAccounts payableNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.16,878,68218,318,225Accounts payableZPMC Southeast Asia Pte. Ltd.16,657,94918,035,599Accounts payable
Jiangmen Hangtong Shipbuilding Co., Ltd. of CCCC Fourth HarborEngineering Co., Ltd.
14,280,000Accounts payableNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.8,581,2508,581,250Accounts payableNo.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.7,815,0187,815,018Accounts payableCCCC First Harbor Consultants Co., Ltd.7,631,2127,631,212Accounts payableShanghai Zhensha Longfu Machinery Co., Ltd.6,751,252Accounts payableCCCC First Harbor Engineering Co., Ltd.6,498,60610,054,549Accounts payableCCCC Water Transportation Planning and Design Institute Co., Ltd.5,907,8915,907,891Accounts payableShanghai Jiangtian Industrial Co., Ltd.4,419,11117,864,928Accounts payable
CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
3,962,7144,091,155Accounts payableCCCC Shanghai Channel Equipment Industry Co., Ltd.594,4182,196,743Accounts payableJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.450,0003,998,467Accounts payable
Chongqing Yongjiang Expressway Investment and Construction Co., Ltd. ofFHEC of CCCC
323,990323,990Accounts payableXiamen Jiehang Engineering Testing Technology Co., Ltd.256,536Accounts payableCCCC Second Highway Engineering Co., Ltd.121,494121,494Accounts payableCCCC Marine Engineering & Technology Research Center Co., Ltd.2,874,835Accounts payableInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.33,84933,849Accounts payableZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi11,691Accounts payableZhenhua (Singapore) Engineering Co., Ltd.9,774Accounts payableCCCC Tianjin Dredging Co., Ltd.70,685,645Accounts payableXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.10,051,352Accounts payableChina Road & Bridge Corporation6,251,552Accounts payableFriede & Goldman, Llc.2,582,443Accounts payableCCCC Tianjin Industry and Trade Co., Ltd.1,952,627Accounts payableCCCC Xingyu Technology Co., Ltd.1,259,406Accounts payable
CCCC (Tianjin) Ecological and Environmental Protection Design Institute Co.,Ltd.
385,000Accounts payableCCCC Third Harbor Consultants Co., Ltd.100,000Accounts payableCCCC (Xiamen) Information Co., Ltd.40,990Accounts payableChina Communications Information Technology Group Co., Ltd.40,189Notes payableCCCC Shanghai Equipment Engineering Co., Ltd.106,040,00073,347,092Notes payableZPMC Changzhou Coatings Co., Ltd.12,215,4224,000,000Notes payableCCCC Second Highway Engineering Co., Ltd.15,123,879Notes payableRoad & Bridge East China Engineering Co., Ltd.15,000,000Contract liabilitiesCCCC Third Harbor Engineering Co., Ltd.197,449,76525,770,208Contract liabilitiesNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.170,288,676Contract liabilitiesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.125,675,1112,155,195Contract liabilitiesChina Harbour Engineering Co., Ltd.92,144,94192,397,526Contract liabilitiesRoad & Bridge International Co., Ltd.80,598,342Contract liabilitiesChina Road & Bridge Corporation28,615,217248,581,718Contract liabilitiesCCCC Yancheng Construction Development Co., Ltd.19,370,518Contract liabilitiesCCCC First Harbor Engineering Co., Ltd.18,506,94086,331,637Contract liabilitiesCCCC Third Highway Engineering Co., Ltd.15,160,936Contract liabilitiesZhenhua Engineering Co., Ltd.11,480,88611,480,886
188188
ItemRelated parties
Ending bookbalance
Beginning book
balanceContract liabilitiesCCCC-SHEC First Highway Engineering Co., Ltd.10,757,478Contract liabilitiesNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.3,000,000175,641,593Contract liabilities
Tianjin International Marine Engineering Co., Ltd. (former: BinhaiEnvironmental Protection Dredging Co., Ltd. of CCCC Tianjin Dredging Co.,Ltd.)
1,190,28010,280Contract liabilitiesCCCC Tianjin Industry and Trade Co., Ltd.1,158,633Contract liabilitiesChina Communications Construction Company Ltd.644,25050,000,000Contract liabilitiesCCCC Second Highway Engineering Co., Ltd.516,117Contract liabilitiesZPMC Southeast Asia Pte. Ltd.336,6512,388,488Contract liabilitiesNo.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.248,6244,857,786Contract liabilitiesXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.200,000200,000Contract liabilitiesCCCC Shanghai Equipment Engineering Co., Ltd.100,000100,000Contract liabilitiesFriede & Goldman, Llc.67,174135,518,892Contract liabilitiesChina Highway Vehicle & Machinery Co., Ltd.200Contract liabilitiesCCCC Fourth Harbor Engineering Co., Ltd.12,265,487Contract liabilities
The First Construction Company of CCCC Second Harbor Engineering Co.,Ltd.
11,009,174Contract liabilitiesCCCC Tianjin Dredging Co., Ltd.522,000Contract liabilitiesNo.2 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.303,149Contract liabilitiesNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.71Other payablesShanghai Jiangtian Industrial Co., Ltd.5,571,8864,586,085Other payablesCCCC Dredging (Group) Co., Ltd.2,000,000Other payablesRoad & Bridge International Co., Ltd.1,600,000Other payablesCCCG1,599,944243,144Other payablesNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.1,327,942Other payablesCCCC Third Highway Engineering Co., Ltd.743,2165,724Other payablesNo.3 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.657,337295,750Other payablesCCCC (Zhengzhou) Construction Co., Ltd.600,000Other payablesCCCC Second Highway Engineering Co., Ltd.200,000Other payablesShanghai Zhensha Longfu Machinery Co., Ltd.170,000Other payablesCCCC Shanghai Equipment Engineering Co., Ltd.107,000100,000Other payablesXiamen Jiehang Engineering Testing Technology Co., Ltd.64,237Other payablesZPMC Changzhou Coatings Co., Ltd.57,60079,872Other payablesCCCC Third Harbor Engineering Co., Ltd.51,664Other payablesCCCC Tianjin Dredging Co., Ltd.51,129Other payablesTianjin Harbour Engineering Quality Inspection Center Co., Ltd.49,000Other payablesCCCC Leasing (Shandong) Co., Ltd.20,000Other payables
Shanghai China Communications Water Transportation Design & ResearchCo., Ltd.
15,200Other payablesHarbor Construction Engineering Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.11,434Other payablesDaHua Technology Co., Ltd.10,000Other payables
CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
Other payablesCCCC Tianjin Dredging Co., Ltd.2,000,000Other payablesZhen Hwa Harbour Construction Co., Ltd.6,593Other payablesBeijing BLDJ Landscape Architecture Institute Co., LTD.3,000Other payablesShanghai Donghua Construction Co., Ltd.3,000
189189
2022
ItemRelated parties
Ending book
balance
Beginning book
balanceShort-termborrowings
CCCC Xiongan Financial Leasing Co., Ltd.20,000,000126,906,111Non-current liabilitiesdue within one year
CCCC Xiongan Financial Leasing Co., Ltd.117,003,70466,666,667Long-term payablesCCCC Tianjin Dredging Co., Ltd.243,811,149219,719,005Long-term payablesCCCC Second Harbor Engineering Co., Ltd.137,123,96760,846,413Long-term payables
CCCC Construction Group Co., Ltd. (former: CCCC Fourth Highway
Engineering Co., Ltd.)
39,558,52639,558,526Long-term payablesCCCC Third Harbor Engineering Co., Ltd.34,665,92334,665,923Long-term payablesCCCC Xiongan Financial Leasing Co., Ltd.33,555,556100,333,333Long-term payablesNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.9,520,8859,520,885Long-term payablesCCCC - SHEC Second Highway Engineering Co., Ltd.125,862125,862Long-term payablesCCCC Leasing Jiahua No.1 Co., Ltd.85,721,883Long-termborrowings
CCCC Finance Company Ltd.644,393,556100,055,556Long-termborrowings
CCCC Xiongan Financial Leasing Co., Ltd.25,168,5197 Commitments with related parties
√Applicable □Not applicable
Rendering of services for the Group by related parties
20222021CCCC Third Harbor Engineering Co., Ltd.761,097,020770,463,672CCCC Tianjin Dredging Co., Ltd.393,318,809545,716,613CCCC First Highway Fifth Engineering Co., Ltd.388,366,210388,366,210No. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.305,931,400305,931,400CCCC First Highway Engineering Co., Ltd.185,310,227478,446,746No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.56,568,99656,568,996Shanghai Communications Construction Contracting Co., Ltd.2,631,3139,650,296CCCC Tunnel Engineering Company Limited158,070158,070
2,093,382,0452,555,302,003
20222021CCCC Haifeng Wind Power Development Co., Ltd.942,273,538-CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
528,800,000 -Road & Bridge International Co., Ltd. 241,720,000 -CCCC First Harbor Engineering Co., Ltd. 224,844,126 390,361,699CCCC Second Highway Engineering Co., Ltd. 154,280,200 254,806,857CCCC Third Harbor Engineering Co., Ltd.145,655,357 69,920,757China Harbour Engineering Co., Ltd.55,177,980 770,512,465CCCC-SHEC First Highway Engineering Co., Ltd. 36,000,000 -China Road & Bridge Corporation 34,957,678 785,312,864No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 27,783,186 -Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd. 25,950,000 103,090,433CCCC 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
190190
20222021CCCC Third Highway Engineering Co., Ltd. - 89,095,627CCCC Second Harbor Engineering Co., Ltd. - 55,563,116
2,426,979,2332,619,816,485
8 Others
√Applicable □Not applicable
Monetary funds deposited in the related parties
20222021CCCC Finance Company Ltd.435,5681,600,000,000
XIII Share-based payment1 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 Modication and termination of share-based payment
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
XIV Commitments and contingencies1 Signicant commitments
√Applicable □Not applicable
Signicant external commitments, nature and amount on the balance sheet dateMatters related to capital expenditure commitmentsCommitments related to capital expenditure contracted for but not provided in the nancial statements as at the balancesheet date:
20222021Buildings and constructions, machinery equipment569,759,423623,727,601
L/C commitmentsThe Group had entrusted the bank to issue several L/Cs to purchase imported components and parts. As at December31, 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) Signicant contingencies on the balance sheet date
□Applicable √Not applicable
(2) If the company has no signicant contingencies to be disclosed, it shall also explain:
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
191191
2022XV. Post balance sheet events1 Signicant non-adjustment events
□Applicable √Not applicable
2 Prot distribution
□Applicable √Not applicable
3 Sales return
□Applicable √Not applicable
4 Description of other post balance sheet events
□Applicable √Not applicable
XVI.Other signicant 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 andinternal reporting system, determines reporting segments based on operating segments, and disclose the information of thesegments.Operating segment refers to the component part of the Group that meet the following requirements: (1) it can generateincome and expenses in daily activities; (2) the management of the Group can regularly evaluate its operating resultsto determine its allocation of resources and to evaluate its performance; (3) the Group is able to obtain its accountinginformation regarding nancial position, operating results and cash ows, etc. If two or more operating segments have similareconomic characteristics, and have met a certain condition, they will be merged into one operating segment.The Group identied the business as an operating segment for analysis and assessment based on internal organizationstructure, management requirement and internal report system.
(2) Financial information of reporting segment
□Applicable √Not applicable
192192
(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 informationIncome from external transactions
20222021Port machinery20,731,800,48917,480,944,149Steel structure and related income2,731,132,3223,754,693,300Engineering construction projects1,613,996,7212,216,802,462Shipping and lifting services1,719,708,1601,317,441,452Heavy equipment3,085,509,098760,120,955Lease income225,960,519245,663,739Sales of materials and others83,685,678202,310,911Total 30,191,792,98725,977,976,968Geographic informationIncome from external transactions
20222021Chinese Mainland16,017,286,40513,821,963,961Asia (excluding Chinese Mainland)7,867,109,1444,459,069,862North America2,181,504,5943,226,645,406Africa1,368,578,6641,394,212,611Chinese Mainland (export sales)968,104,389718,960,209Europe877,042,9562,038,120,499South America600,144,518206,298,856Oceania312,022,317112,705,564Total 30,191,792,98725,977,976,968The income from external transaction is attributable to where the customer is located.Total non-current assets
20222021Chinese Mainland19,253,173,35919,258,280,848Asia (excluding Chinese Mainland)10,140,996,4129,267,671,402Others111,020,66853,531,410Total 29,505,190,43928,579,483,660The non-current assets are attributable to where they are located, excluding financial assets, long-term equityinvestment, goodwill, deferred income tax assets and other non-current assets.7 Other signicant 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, whichis detailed in Note VII (20).
193193
2022The Group leases out some ships for periods ranging from 2-3 years, forming operating lease. In accordance withthe lease agreement, the rental is subject to annual adjustment according to the market rental status. In 2022, the Group’sincome from the lease of ships was RMB 140,717,121 (2021: RMB 125,616,125), which is detailed in Note VII (61). Theships leased out are presented in xed 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 operatinglease. In 2022, the Group’s income from the lease of machinery and equipment was RMB 11,164,103 (2021: RMB21,064,302), which is detailed in Note VII (61).Operating leaseThe prot or loss related to operating leases is presented as follows:
20222021Lease income225,960,519245,663,739
According to the lease agreement signed with the lessee, the minimum lease receipts of non-cancellable leases are asfollows:
20222021Within 1 year (including 1 year)239,242,941 96,052,1771 to 2 years (including 2 years)132,035,513 98,450,8012-3 years (including 3 years)42,528,10173,936,0633 to 4 years (including 4 years)19,751,07135,084,8504 to 5 years (including 5 years)85,516,755 18,508,663Over 5 years828,27384,274,346Total 519,902,654406,306,900
(2) As a lessee
20222021Interest expense of lease liabilities615,840443,939Short-term lease expenses with simplied treatment included in the current prot orloss
104,487,30792,747,477Total cash outows related to leases122,403,881 104,632,378Cash inow from leaseback-732,028,920Cash outow from leaseback242,328,806662,155,962
The leased assets leased by the Group include buildings and constructions, machinery and equipment, transportationequipment and other equipment used in the course of operations, and the lease term is usually 1-3 years. The lease contractusually stipulates that the Group cannot sublet the leased assets. A few lease contracts include the option of renewal.LeasebackThe Group usually enters into leaseback transactions for the purchase price of large ships or equipment, where thetransfer of the assets is not a sale. The Group continues to recognize the transferred assets together with a nancial liabilityequal to the transfer income. The Group takes such leaseback transactions as mortgage loans for accounting treatment.The Group makes annual leaseback nancing payments to the nance leasing company in accordance with the terms of thecontract.Other lease informationRight-of-use assets are detailed in Note VII (25). The simplified treatment of short-term lease and low-value assetslease is detailed in Note V (34). The lease liabilities are detailed in Note VII (47).8 Others
□Applicable √Not applicable
194194
XVII. Notes to main items of the nancial statements of the parent company1 Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNYAgingEnding book balanceWithin 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year15,808,520,8821-2 years580,444,1642-3 years1,854,369,394Over 3 years3-4 years666,023,6114-5 years83,902,642Over 5 years1,126,924,513Total20,120,185,206 (2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Category
December 31, 2022December 31, 2021Book balanceProvision for bad debts
Book value
Book balanceProvision for bad debts
Book valueAmount
Proportion
(%)
Amount
Proportion ofprovision (%)
Amount
Proportion
(%)
Amount
Proportion ofprovision (%)Provision for bad debts accrued on anindividual basis
896,540,1364825,285,3909271,254,746898,273,3145655,457,49573242,815,819Including:
Provision for bad debts by portfolio19,223,645,070961,280,658,766717,942,986,30416,035,525,320951,233,339,095814,802,186,225Including:
Total20,120,185,206/2,105,944,156/18,014,241,05016,933,798,634/1,888,796,590/15,045,002,044
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNYName
December 31, 2022Book balanceProvision for bad debtsProportion of provision (%)Reason for provisionAccounts receivable 1475,031,639403,776,89385Counterparty nancial shortageAccounts receivable 2173,768,233173,768,233100Contract disputeAccounts receivable 393,954,00093,954,000100Counterparty nancial shortageAccounts receivable 451,028,80051,028,800100Contract disputeAccounts receivable 543,053,94643,053,946100Contract disputeAccounts receivable 627,858,47027,858,470100Contract disputeAccounts receivable 710,208,91610,208,916100Contract disputeAccounts receivable 87,450,7647,450,764100Contract disputeAccounts receivable 97,495,0887,495,088100Contract disputeAccounts receivable 102,220,3142,220,314100Contract disputeAccounts receivable 113,576,1783,576,178100Contract disputeAccounts receivable 12893,788893,788100Counterparty nancial shortageTotal896,540,136825,285,39092/
195195
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 balanceProvision for bad debtsEstimated credit loss ratio %Reason for provisionAccounts receivable 1485,631,638242,815,81950Counterparty nancial shortageAccounts receivable 2169,011,372169,011,372100Contract disputeAccounts receivable 393,954,00093,954,000100Counterparty nancial shortageAccounts receivable 451,028,80051,028,800100Contract disputeAccounts receivable 542,979,94742,979,947100Contract disputeAccounts receivable 625,502,86425,502,864100Contract disputeAccounts receivable 79,929,4509,929,450100Contract disputeAccounts receivable 87,289,9127,289,912100Contract disputeAccounts receivable 96,820,7566,820,756100Contract disputeAccounts receivable 103,273,7903,273,790100Contract disputeAccounts receivable 112,032,5722,032,572100Contract disputeAccounts receivable 12818,213818,213100Contract disputeTotal 898,273,314655,457,495
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 otherreceivables for disclosure:
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
The recovered or reversed provision for bad debts with signicant amount:
□Applicable √Not applicable
(4) Accounts receivable actually written o? in the current period
□Applicable √Not applicable
Write-o? 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 summarizedand analyzed as follows:
BalanceProvision for bad debts
Proportion in total balance of
accounts receivable %Total accounts receivable of top 5 balances12,573,763,269542,210,38862
As at December 31, 2021, top 5 accounts receivable in terms of ending balance presented by debtor are summarizedand analyzed as follows:
BalanceProvision for bad debts
Proportion in total balance ofaccounts receivable %Total accounts receivable of top 5 balances11,702,726,987321,196,59269
Other description
None
(6) Accounts receivable derecognized due to the transfer of nancial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
196196
Other description:
√Applicable □Not applicable
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
20222021Book balance ofestimated default
Estimated credit
loss ratio (%)
Expected creditloss for the entireduration
Book balance ofestimated default
Estimated credit
loss ratio (%)
Expected creditloss for the entiredurationWithin 1 year15,806,393,464188,542,60712,442,731,692192,165,1081-2 years580,444,1641479,426,7232,324,246,47915350,138,4912-3 years1,744,608,25627464,722,489254,417,6252665,236,0403-4 years223,238,6653885,019,63893,702,8104542,034,9004-5 years69,671,8425840,507,107130,310,7496685,404,118Over 5 years799,288,67965522,440,202790,115,96576598,360,438Total 19,223,645,0701,280,658,76616,035,525,3201,233,339,095
Changes in the provision for bad debts of accounts receivable are as follows:
January 1, 2022Provision in 2022Reversal in 2022December 31, 202220221,888,796,590677,030,281(459,882,715)2,105,944,15620211,803,709,232646,175,124(561,087,766)1,888,796,590
2 Other receivablesItem presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2022December 31, 2021Interest receivableDividends receivable315,789,096Other receivables1,364,774,5183,836,840,864Total1,680,563,6143,836,840,864Other description:
□Applicable √Not applicable
Interest receivable
(1) Classication of interest receivable
□Applicable √Not applicable
(2) Signicant 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, 2022December 31, 2021Nanjing Ninggao New Channel ConstructionCo., Ltd.
315,789,096Total315,789,096
(5) Signicant dividends receivable aging over 1 year
□Applicable √Not applicable
Provision for bad debts□Applicable √Not applicableOther description:
□Applicable √Not applicable
197197
2022Other receivables
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNYAgingDecember 31, 2022Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year1,337,834,7981-2 years41,098,4672-3 years6,159,589Over 3 years3-4 years3,740,6054-5 years199,800Over 5 years9,610,964Total1,398,644,223
(2) Classication by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNYNature of fundsDecember 31, 2022December 31, 2021Current accounts between subsidiaries671,021,7173,293,532,451Taxes on outstanding payment receivable332,163,971318,884,216Equity disposal receivables62,210,484Customs deposits267,023,62661,537,519Bid and performance bonds50,292,19341,731,603Lease payment receivable41,353,25233,434,668Money on call of on-site product service21,959,59221,040,992Sta? loan receivable13,295,58314,644,659Others1,534,289149,879Total1,398,644,2233,847,166,471
(3) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNYProvision for bad debt
Stage IStage IIStage III
TotalExpected creditlosses over the next12 months
Expected credit loss for theentire duration (no creditimpairment)
Expected credit loss forthe entire duration (creditimpairment occurred)Balance as at January 1, 20224,425,5195,900,08810,325,607Balance as at January 1, 2022 incurrent period--Transferred to Stage II--Transferred to Stage III--Reversal to Stage II--Reversal to Stage IProvision in the current period23,544,09823,544,098Reversal in the current periodWrite-o? in the current periodCharge-o? in the current periodOther changesBalance as at December 31, 202227,969,6175,900,08833,869,705
198198
Description of signicant changes in book balance of other receivables with changes in loss provision in the currentperiod:
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly:
□Applicable √Not applicable
(4) Provision for bad debts
□Applicable √Not applicable
(5) Other receivables actually written o? 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: CNYNameNature
December
31, 2022
Aging
Proportion in thetotal balance of otherreceivables (%)
Balance of provisionfor bad debts as atDecember 31, 2022Other receivables 1Customs-related security deposit267,023,626Within 1 year19Other receivables 2Transactions with subsidiaries207,756,6141-2 years15Other receivables 3Transactions with subsidiaries156,491,005Within 1 year11Other receivables 4Transactions with subsidiaries97,081,673Within 1 year7Other receivables 5Unpaid taxes receivable65,462,8963-4 years523,571,255Total/793,815,814/5723,571,255
(7) Receivables involving government subsidies
□Applicable √Not applicable
(8) Other receivables derecognized due to transfer of nancial 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: CNYItem
December 31, 2022December 31, 2021Book balance
Provision forimpairment
Book valueBook balance
Provision for
impairment
Book valueInvestment in subsidiaries7,403,925,0817,403,925,0817,230,010,8017,230,010,801Investment in joint venturesand associates
1,985,654,1631,985,654,1631,816,129,6021,816,129,602Total9,389,579,2449,389,579,2449,046,140,4039,046,140,403
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Invested entity
December 31,2021
Increasein current
period
Decrease incurrent period
December 31,
2022
Provision forimpairment incurrent period
Balance of provisionfor impairment as atDecember 31, 2022Shanghai Zhenhua Heavy Industries Port Machinery GeneralEquipment Co., Ltd.
2,201,086,7442,201,086,744Nanjing Ninggao New Channel Construction Co., Ltd.100,000,000100,000,000Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.2,500,000,0002,500,000,000ZPMC Transmission Machinery (Nantong) Co., Ltd.506,112,853506,112,853CCCC Zhenjiang Investment Construction ManagementDevelopment Co., Ltd.
376,438,604376,438,604CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd.ZPMC Qidong Marine Engineering Co., Ltd.203,000,000203,000,000
199199
2022Invested entity
December 31,2021
Increasein currentperiod
Decrease incurrent period
December 31,
2022
Provision forimpairment incurrent period
Balance of provisionfor impairment as atDecember 31, 2022CCCC Liyang Urban Investment and Construction Co., Ltd. 363,000,000363,000,000Shanghai Zhenhua Shipping Co., Ltd.140,260,673140,260,673Shanghai Zhenhua Ocean Engineering Service Co., Ltd.100,000,000100,000,000ZPMC Electric Co., Ltd.50,000,00050,000,000CCCC Investment & Development Qidong Co., Ltd.242,500,00055,000,000297,500,000ZPMC North America Inc.18,564,52018,564,520ZPMC Netherlands Co?peratie U.A.29,366,08468,88029,434,964Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd.9,964,2009,964,200ZPMC Machinery Equipment Services Co., Ltd.7,000,0007,000,000ZPMC Lanka Company (Private) Limited6,183,9786,183,978ZPMC Middle East Fze5,271,1205,271,120ZPMC Zhangjiagang Port Machinery Co., Ltd.4,518,0004,518,000ZPMC Limited Liability Company10,172,07010,172,070ZPMC Southeast Asia Holding Pte. Ltd.12,513,11412,513,114ZPMC Engineering Africa (Pty) Ltd.3,084,0003,084,000ZPMC Engineering (India) Private Limited2,953,2002,953,200ZPMC Brazil Servi?o Portuários LTD.2,936,7712,936,771ZPMC Korea Co., Ltd.6,398,0596,398,059ZPMC UK LD2,797,9212,797,921ZPMC Australia Company (Pty) Limited2,708,5002,708,500CCCC Rudong Construction Development Co., Ltd.36,664,60045,845,40082,510,000CCCC Yongjia Construction Development Co., Ltd.172,000,00052,000,000224,000,000CCCC Zhenhua Lvjian Technology (Ningbo) Co., Ltd. 4,000,0004,000,000ZPMC Latin America Holding Corporation3,307,8503,307,850ZPMC GmbH Hamburg207,940207,940ZPMC Fuzhou O?shore Construction Co., Ltd.10,000,00010,000,000CCCC (Dongming) Investment and Construction Co., Ltd.49,000,00021,000,00070,000,000Xiong’an Zhenhua Co., Ltd.15,000,00015,000,000CCCC Zhenhua Intelligent Parking (Hengyang) Co., Ltd.33,000,00033,000,000Total7,230,010,801173,914,2807,403,925,081 (2) Investment in joint ventures and associates
√Applicable □Not applicable
Unit: Yuan Currency: CNYInvested entity
December 31,
2021
Increase/decrease in the current period
December 31,2022Balance ofprovisionforimpairment
as atDecember31, 2021Furtherinvestment
Reducedinvestment
Prot orloss oninvestments
under theequity method
Adjustmentof othercomprehensiveincome
Changesin otherequity
Cashdividendsor protdeclared tobe distributed
Provision
forimpairment
OthersI. Joint venturesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd.323,033,68176,902,400-35,000,000364,936,081ZPMC Mediterranean Liman Makinalari Ticaret AnonimSirketi
396,692396,692Sub-total323,430,37376,902,400-35,000,000365,332,773II. AssociatesCCCC Financial Leasing Co., Ltd.608,658,40065,045,550625,583674,329,533CCCC Yancheng Construction Development Co., Ltd.418,516,242418,516,242CCCC Estate Yixing Co., Ltd. 192,917,08313,878,398206,795,481CCCC South American Regional Company SARL167,286,61311,622,93315,481,457194,391,003China communications Construction USA Inc.55,146,147197,8654,636,85359,980,865CCCC Photovoltaic Technology Co., Ltd.-34,765,69354,07034,819,763ZPMC Changzhou Coatings Co., Ltd.19,729,2663,299,000-4,588,10718,440,159CCCC Xiongan Urban Construction Development Co., Ltd. 7,512,97127,3627,540,333Shanghai Ocean Engineering EquipmentManufacturing Innovation Center Co., Ltd.
5,820,675-312,6645,508,011CCCC Marine Engineering & Technology ResearchCenter Co., Ltd.
17,111,832-17,165,75853,926Sub-total1,492,699,22934,765,693-17,165,75893,866,44020,743,893-4,588,1071,620,321,390Total1,816,129,60234,765,693-17,165,758170,768,84020,743,893-39,588,1071,985,654,163
Other description:
None
200200
4 Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current periodAmount incurred in the previous period
RevenueCostRevenueCostPrimary businesses23,815,340,35621,476,119,92921,041,533,48519,594,709,968Other business2,351,859,7842,239,174,4721,947,957,7631,718,890,668Total26,167,200,14023,715,294,40122,989,491,24821,313,600,636
(2) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNYClassication of ContractXXX-DivisionTotalType of goods
Port machinery19,077,625,724Heavy equipment2,583,435,444Sales of materials and others2,189,400,559Steel structure and related income1,857,271,569Engineering construction projects297,007,620By region of operation
Chinese Mainland12,866,518,897Asia (excluding Chinese Mainland)7,530,460,148North America1,894,585,077Africa1,315,268,003Chinese Mainland (export sales)860,923,310Europe695,308,842South America535,048,885Oceania306,627,754Market or customer typeContract typeRevenue recognized at a certain point of timePort machinery18,246,841,951Sales of materials and others2,189,400,559Heavy equipment1,699,958,881Steel structure and related income902,130,874Revenue recognized in a certain period of timeHeavy equipment883,476,562Port machinery830,783,774Steel structure and related income955,140,695Engineering construction projects297,007,620By time of goods transferBy contract termBy sales channelTotal26,004,740,916
201201
2022Description of income from contracts:
□Applicable √Not applicable
(3) Performance obligations
□Applicable √Not applicable
(4) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
None5 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred inthe current period
Amount incurred in theprevious periodIncome from long-term equity investments calculated under cost method441,136,78556,655,365Income from long-term equity investment calculated under the equity method170,768,840232,454,488Investment income from disposal of long-term equity investment-95,166167,833,181Investment income from held-for-trading nancial assets during the holding period13,458,0941,112,889Dividend income from other equity instrument investment during holding335,7907,835,826Interest income from debt investment during holdingInterest income from other debt investment during holdingInvestment income from disposal of held-for-trading nancial assets5,843819,204,693Investment income from disposal of other equity instrument investmentInvestment income from disposal of debt investmentInvestment income from disposal of other debt investmentIncome from debt restructuringInvestment income from disposal of other non-current nancial assets1,050,134Losses on derecognition of nancial assets measured at amortized cost-20,135,378Others-1,455,319Total604,019,4891,286,146,576
Other description:
None
6 Others
□Applicable √Not applicable
XVIII Supplementary information
1 Items of non-recurring prot or loss in current period
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemAmountRemarksProt or loss from disposal of non-current assets66,091,456Tax refunds, exemptions and reductions with ultra vires approval or without o?cial approval documentsGovernment grants included in the current prot or loss (except for the one closely related to the operationsof the Company and gained constantly at a xed amount or quantity according to certain standard)
106,415,947Capital occupation fees charged to the non-nancial enterprises and included in current prot or loss
202202
ItemAmountRemarksProt generated when the Company’s investment cost in acquiring the subsidiary, a?liated company and jointventure is less than the fair value of the recognizable net assets of the invested unit at the time of acquiringProt or loss from non-monetary assets exchangeProt or loss from the assets entrusted to others for investment or managementProvisions for impairment of assets accrued due to force majeure such as natural disasterProt or loss from debt reorganizationCost for enterprise reorganization, such as sta?ng expenses and integration feesProt or loss in excess of the fair value generated in transaction with unfair priceCurrent net prot or loss of the subsidiary generated from the business combination under common controlfrom the beginning of the period to the combination dateProt or loss from the contingencies, unrelated to the normal business of the CompanyProt or loss on changes in fair values of held-for-trading nancial assets, derivative nancial assets, held-for-trading nancial liabilities and derivative nancial liabilities, and investment income obtained from disposalof held-for-trading nancial assets, derivative nancial assets, held-for-trading nancial liabilities, derivativenancial liabilities and other credit investment, except for e?ective hedging operations associated with thecompany’s normal operations
-214,877,284Reversal of provision for impairment of receivables and contract assets subject to separate impairment testProt or loss from external entrusted loansProt or loss on changes in fair value of investment property by follow-up measurement in fair value modeImpact on current prot or loss due to one-o? adjustment to current prot or loss according to therequirements of tax and accounting laws and regulationsCustody fees of entrusted operationOther non-operating revenue and expenses except for the above-mentioned items27,301,769Other prot or loss items that conform to the denition of non- recurring prot or lossLess: A?ected amount of income tax11,561,380A?ected amount of minority equity16,268,600Total-42,898,092
For the non-recurring profit or loss items defined by the Company according to the “Explanatory Announcement onInformation Disclosure of Companies O?ering Securities to the Public No. 1 - Non-recurring Prot or Loss”, and the recurringprofit or loss items defined by the non-recurring profit or loss items listed in “Explanatory Announcement on InformationDisclosure of Companies O?ering Securities to the Public No. 1 – Non-recurring Prot or Loss”, reasons shall be explained.
□Applicable √Not applicable
2 Return on net assets and earnings per share
√Applicable □Not applicable
Prot in the reporting period
Weighted average rate ofreturn on net assets (%)
Earnings per shareBasic earningsper share
Diluted earningsper shareNet prot attributable to ordinary shareholders of the Company2.390.070.07Net prot attributable to ordinary shareholders of the Companyafter deducting non-recurring prots and losses
2.680.070.07
203203
20223 Di?erences 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
□Applicable √Not applicable