振华重工:振华重工2020年年度报告（英文版）

Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co. Ltd.Annual Report 2020
CONTENTS
Section I Definitions 03
Section II Company Profile and Principal Financial Indexes 04
Section III Business Profile 08
Section IV Discussion and Analysis of the Performance 10
Section V Important Events 19
Section VI Changes in Ordinary Shares and Shareholders' Situation 34
Section VII Preferred Shares 38
Section VIII Directors Supervisors Senior Executives and Employees 39
Section IX Corporate Governance 45
Section X Related Information on Corporate Bonds 47
Section XI Financial Report 48
Section XII List of Reference Documents 199
Important Notice
1 The Board of Directors Board of Supervisors directors supervisors and senior executives
of the Company hereby guarantee the truthfulness accuracy and completeness of the
contents carried in this annual report guarantee no false record serious misleading
statement or great omission carried in this annual report and guarantee to assume the
legal responsibilities jointly and separately.2 All directors of the Company are present at the board meeting.3 Ernst & Young LLP. (Special General Partnership) issues the standard audit report without
qualified opinion for the Company.4 Liu Chengyun the chairman of the Company Zhu Xiaohuai person in charge of
accounting work and Sun Guangbo person in charge of accounting agency (accountant
in charge) hereby declare that the financial statements in this Annual Report are true
accurate and complete.5 Proposal for profit distribution or common reserves capitalizing during the reporting period
reviewed by the board of directors
Considering the Company’s business plan and the capital demand in 2021 in order
to ensure the Company’s long-term healthy and sustainable development the profit
distribution proposal for 2020 is as follows: the Company will neither distribute the profits
nor transfer the capital public reserves into the paid-in capital.6 Risk declaration of forward-looking statements
□Applicable √ Not Applicable
7 Does the Company have non-operating funds occupied by the holding shareholder and its
related parties?
No
8 Does the Company provide the external guarantees in breach of the stipulated decision-
making procedure?
No
9 Whether more than half of the directors cannot guarantee the authenticity accuracy and
completeness of the annual report disclosed by the Company?
No
10 Major Risk Warning
The company has described the related potential risks in this annual report. Investors may
pay attention to the same. Please refer to discussion and analysis of the performance
and related chapters for the risks the company may be confronted with in the future
development.11 Others
□Applicable √ Not Applicable22020
Section I Definitions
I. Definitions
The terms used in this report shall be defined as follows unless otherwise specified:
Definitions of high frequency terms
Company the Company Refers to Shanghai Zhenhua Heavy Industries Co. Ltd.CCCC Refers to China Communications Construction Company Ltd.CCCG Refers to China Communications Construction Group Co. Ltd.CCCG HK Refers to CCCG (HK) Holding Limited
Reporting period Refers to From Jan. 1 2020 to Dec. 31 20203
Section II Company Profile and Principal Financial Indexes
1 Company Information
Company name in Chinese 上海振华重工（集团）股份有限公司
Abbreviation of the Company name in Chinese 振华重工
Company name in English SHANGHAI ZHENHUA HEAVY INDUSTRIES CO.LTD.Abbreviation of the Company name in English ZPMC
Legal representative of the Company Liu Chengyun
2 Contact Information
Secretary of the Board of Directors
Name Sun Li
Address No. 3261 Dongfang Road Shanghai
Telephone 021-50390727
Fax 021-31193316
E-mail IR@ZPMC.COM
3 Basic Information
Registered address No.3470 Pudong South Road Shanghai
Postal code of registered address 200125
Office address No. 3261 Dongfang Road Shanghai
Postal code of office address 200125
Website http://www.zpmc.com
E-mail IR@ZPMC.COM
4 Information disclosure and placement location
Newspaper designated by the Company for information
disclosure Shanghai Securities News Hong Kong Wen Wei Po
Website designated by China Securities Regulatory
Commission (CSRC) for publishing the annual report of the www.sse.com.cn
Company
Placement location of the annual report of the Company Securities Affairs Office42020
5 Stock information
Stock Information
Stock type Stock exchange Stock abbreviation Stock code Stock abbreviation before change
A-share Shanghai Stock Exchange (SSE) Zhenhua Heavy 600320 ZPMC Industries
B-share Shanghai Stock Exchange (SSE) Zhenhua B-share 900947 -
6 Other relevant information
Name Ernst & Young LLP (Special General Partnership)
Public accounting
firm engaged by the Office address Room 01-12 Floor 17
th Ernst & Young Tower Oriental Plaza No.1
Company (domestic) East Changan Street Dongcheng District Beijing
Signed by the Accountants Liu Wei Gu Chengli
7 Main accounting data and financial indexes in recent three years
(I) Main accounting data
Unit: Yuan Currency: CNY
Year-on-year
Main accounting data 2020 2019 2018
change (%)
Operating revenue 22655141652 24595587883 -7.89 21812389644
Operating revenue after deducting the business income
unrelated to primary business and the income without 22396639375 / / /
commercial substance
Net profit attributable to the shareholders of the listed
company 422240299 514930143 -18.00 443005092
Net profit attributable to the shareholders of the listed
company after deducting the non-recurring profits and losses -58462207 311117615 -118.79 121335528
Net cash flows from operating activities 819389020 1290213109 -36.49 553943979
At the end of At the end of Year-on-year At the end of
2020 2019 change (%) 2018
Net assets attributable to the shareholders of the listed
company 14570822140 15543404014 -6.26 15185861952
Total assets 79320644540 74410783300 6.60 70598364627
(II) Major financial indexes
Major financial indexes 2020 2019 Year-on-year change (%) 2018
Basic earnings per share (RMB/share) 0.080 0.098 -18.37 0.084
Diluted earnings per share (RMB/share) 0.080 0.098 -18.37 0.084
Basic earnings per share after deducting non-
recurring profits and losses (RMB/share) -0.011 0.059 -118.64 0.023
Weighted average ROE (%) 3.04 3.39 -0.35 2.92
Weighted average ROE after deducting non-recurring
profits and losses (%) -0.43 2.06 -2.49 0.805
Notes to the main accounting data and financial indexes in the past 3 years before the end of the reporting period
□Applicable √ Not Applicable
18 Differences in accounting data under domestic and overseas accounting standards
1.Difference in net profits and net assets attributable to the shareholders of the listed company in the financial statement
synchronously disclosed under the international and national accounting standards
□Applicable √ Not Applicable
2.Difference in net profits and net assets attributable to the shareholders of the listed company in the financial statement
synchronously disclosed under the domestic and overseas accounting standards
□Applicable √ Not Applicable
3.Explanation for differences between the domestic and overseas accounting standards:
□Applicable √ Not Applicable
19 Main financial data in 2020 by quarters
Unit: Yuan Currency: CNY
Q1 Q2 Q3 Q4
(Jan. to Mar.) (Apr. to Jun.) (Jul. to Sep.) (Oct. to Dec.)
Operating revenue 4415427928 4715971907 5341644401 8182097416
Net profit attributable to the shareholders of the listed company -92971034 109610761 175488612 230111960
Net profit attributable to the shareholders of the listed company
after deducting the non-recurring profits and losses 100767019 28640017 -58544317 -129324926
Net cash flows from operating activities -375004585 419553753 23089584 751750268
Notes to differences between the quarterly data and the data in periodically disclosed reports
Applicable √ Not Applicable
110 Non-recurring profit and loss items and amount
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Amount in Note Amount in Amount in
Non-recurring profit and loss items
2020 (if applicable) 2019 2018
Profit or loss from disposal of non-current assets 36620758 49091913 155557716
Government subsidies included in current profits and losses except
for government subsidies closely related to the Company business in
line with national policies and obtained by quota or quantity at unified 97849026 93271980 114412517
state standards
Profit or loss on changes in fair values of held-for-trading financial
assets derivative financial assets held-for-trading financial liabilities
and derivative financial liabilities and investment income obtained
from disposal of held-for-trading financial assets derivative financial 356116979 146517397 74200750
assets held-for-trading financial liabilities derivative financial
liabilities and other credit investment except for effective hedging
operations associated with the company's normal operations
Reversal of provision for impairment of receivables subject to
separate impairment test 78007100 150327138
Other non-operating revenue and expenses except for the above-
mentioned items 4718614 -18553180 -67069856
Affected amount of minority equity -15226311 -23013076 -30908588
Affected amount of income tax -77383660 -43502506 -74850113
Total 480702506 203812528 32166956462020
111 Items measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNY
Impact on
December 31 December 31 Current
Item current
2019 2020 change
profits
Jiangxi Huawu Brake Co. Ltd. 132211332 228142450 95931118 81991399
Qingdao Port International Co. Ltd. 510671771 415582601 -95089170 -58710297
China Railway Signal & Communication Corporation Limited 479560537 269294333 -210266204 -150959680
Shenwan Hongyuan Group Co. Ltd. 1119345 1154324 34979 47226
COSCO Shipping Holdings Co. Ltd. 585555555 679011665 93456110 423923787
Derivative financial assets 22235244 0 -22235244 3153419
Derivative financial liabilities -7312741 -458882 6853859 5825780
Equity instrument investment 8438278 8438278 0 0
Hunan Fengri Power & Electric Co. Ltd. 24348689 22685894 -1662795 0
CCCC Highway Bridges National Engineering Research
Centre Co. Ltd. 17649136 19319276 1670140 0
CCCC National Engineering Research Center of Dredging
Technology and Equipment Co. Ltd. 9005378 8000908 -1004470 0
Shenyang Weichen Crane Equipment Co. Ltd. (Former
name: Shanghai Zhenhua Port Machinery (Group) Shenyang 2865664 4197036 1331372 938696
Elevator Co. Ltd.)
Ningbo Weilong Port Machinery Co. Ltd. (Former name:
ZPMC Ningbo Transmission Machinery Co. Ltd) 7241610 6565227 -676383 5108263
ZPMC Longchang Lifting Equipment Co. Ltd (Former name:
Shanghai Zhenhua Port Machinery (Group) Longchang 870791 737410 -133381 125025
Lifting Equipment Co. Ltd.)
CCCC Tianhe Mechanical Equipment Manufacturing Co.Ltd. - 330094057 330094057 3627322
Total 1794460589 1992764577 198303988 315070940
12 Others
□Applicable √ Not Applicable7
Section III Business Profile
I. Main business business model of the Company and the industrial profile during the reporting period
The Company is a famous heavy-duty equipment manufacturer and a state-owned listed company on A and B shares
with the headquarters in Shanghai and multiple production bases in Shanghai and Nantong. It is also the biggest port heavy-
duty machinery equipment manufacturer in the world. The business scope of ZPMC mainly covers: marine heavy industry
heavy special steel structure marine transportation and installation system integration engineering general contracting
electrical product software development and integration investment and financing business integrated services. While
constantly consolidating its traditional business advantages it is also actively expanding smart industries livelihood
consumption integrated development and digital industries.The business scope of the Company covers: design construction installation and contracting of large port loading and
unloading system and equipment offshore heavy equipment engineering machinery engineering vessels and large metal
structural parts and their parts and components; ship repair; leasing of equipment; leasing of self-owned houses; leasing of
self-produced crane; sales of the products made by the sales company; international sea transportation by special purpose
vessels that can be transported with the whole equipment; specialized contracting of steel structure engineering; construction
of electric construction engineering; and construction of electromechanical installation and construction engineering; research
and development installation and sales of oil and gas exploration equipment and mechanical engineering equipment;
design of marine engineering buildings; technology development technical consulting technical services and technology
transfer in the fields of computer software and information computer network mechanical technology environmental
protection technology new energy technology intelligent technology; installation and maintenance of railway and urban rail
transportation equipment and accessories; property management; loading unloading handling and storage; parking lot
(warehouse) operation and management; import and export business of goods and technologies (In case of quota license
management special regulations quality inspection safety inspection and construction qualification requirements involved
it shall not carry out the business activities before obtaining the corresponding qualifications or licenses in accordance with
the relevant national regulations).[Items subject to approval according to law can be carried out only after such approval is
granted by the competent authorities]
In recent years the traditional ports are gradually upgraded towards automation digitization and intelligence and are
transforming to the new operation mode of “smart port” and “green port”. Accordingly the port machinery and equipment are
also developing towards high efficiency automation digitization intelligence “green” model and environmental protection. By
increasing the investment in scientific and technological research and development deepening the cooperation with strategic
customers and cross-industry cooperation ZPMC has actively expanded new business fields and further strengthened its
competitive advantage while consolidating its leading position in the industry.II. Explanation for major changes in prime assets of the Company during the reporting period
□Applicable √ Not Applicable
III. Analysis of the core competitiveness during the reporting period
√ Applicable □ Not Applicable
1 Leading R & D capability
The Company has adhered to the top-level design of scientific and technological innovation and made overall planning
of the science and technology innovation system. The design and R&D center of the Company has been building a scientific
and technological innovation system with the ZPMC characteristics from many aspects actively expanded the cooperation
space of open innovation alliance focused on the key technical challenges in the development strengthened the organic
connection of innovation chain and industrial chain with the market demand and has built an open technology innovation
alliance or collaborative innovation platform with many domestic and foreign universities scientific research institutions and
enterprises.In 2020 the Company applied for 231 patents including 99 invention patents and 132 utility models and was granted
186 patents including 39 invention patents and 140 utility models; it was also granted 5 international patents 41 softwarecopyright registrations and 2 drawing works registrations. In 2020 the “Research and Application of Key Technologies forYangshan Phase IV Super-Large Automated Container Terminal” won the Grand Prize of the Award for Progress in Scienceand Technology of Shanghai City and the “Research and Application of Key Technologies of Super-Large Quayside Bridgefor 3E Container Ships” won the Second Prize of the Award for Progress in Science and Technology of Shanghai City.Furthermore the Company has actively participated in national industrial and local standardization activities and undertook
63 international national industrial local and group standards of which 40 have been issued.82020
2 Intelligent manufacturing capability in continuous upgrading
In order to improve the product quality and production efficiency with intelligent equipment and intelligent workshop
as the breakthrough points the Company has carried out pilot transformation and upgrading of intelligent manufacturing in
several production bases. The automation and intelligent manufacturing were firstly implemented in the key manufacturing
of standardized parts such as box girder components related steel structure and mechanical accessories in query-side
container crane which was the main product of the Company. In the way of promotion the Company took the construction
of intelligent workshop as the starting point to make experiments in building the automated information-based and efficient
production process for quayside bridge box girder components; through the introduction of advanced processing equipment
with data acquisition function such as built-in PLC intelligent welding robot RGV unmanned transport vehicle and other
intelligent equipment as well as in combination with information integration technology it realized the interconnection
between equipment and the visual management of production site. Through the preliminary building of intelligent workshop
it solved the problem of low automation level in large-scaled lifting equipment manufacturing industry greatly reduced the
over dependence on workers reduced labor cost and provided guarantee for the control of the quality stability of products
which was of great reference significance for promoting the adjustment and upgrading of related industrial structure in the
same industry.3 Global marketing network and digital supply chain platform
The Company has always focused on global development actively explored the world market and constantly
strengthened the global network layout of overseas branches. It has established 28 overseas branches in the world
established good partnership and solid cooperation foundation with local enterprises and upstream and downstream
enterprises of the industry and continuously exerted its localization advantages. Based on its global operation and service
network the Company has provided integrated and lean operation and lifecycle service for global customers in a fast
accurate and comprehensive way. The Company has a service team composed of more than 1000 high-quality professionals
on the site all over the world which can provide efficient solutions and perfect spare parts service support and supply goods
to the world in the shortest time. Terminexus a wholly-owned subsidiary of the Company has built the first digital supply
chain platform in port machinery industry.9
Section IV Discussion and Analysis of the Performance
I. Discussion and Analysis of the Performance
In 2020 under the guidance of the long-term goal of building a world excellent company with international
competitiveness and the established strategies the Company has overcome COVID-19 and other unfavorable factors
enhanced the confidence in development persisted in reform and innovation and promoted the epidemic prevention and
control production and capacity resume market extension reform and innovation environmental protection construction
risk resolution poverty alleviation and Party building which ensured the stable development of the Company.During the reporting period the port machinery business of the Company went on expanding and stabilized the basic
development of the Company. The Company products have entered 104 nations and regions and the Company has won the
bidding for some key projects including Adani Maersk (Ivory Coast) COSCO Haikou and Xiuying Port. Intelligent straddle
carrier ship loader and reach stacker development by the Company have achieved “zero” breakthrough in the market.In offshore business inventory elimination and new signing of projects were advanced simultaneously and the sales of
core accessories such as shield machine gearbox were good. In steel structure business it has implemented many high-
quality projects including Ivory Coast Bridge Vanuatu Bridge Guangdong Jieyang wind power pipe pile Xiamen Second
Passage etc. The offshore service business has actively expanded the business in the field of offshore wind power general
contracting. The electrical business has been promoted in an orderly manner and EZ electronic control has entered 83
nations and regions; the advantages of PV brand are gradually emerging; the intelligent manufacturing project has made
great progress. The integrated service business directly faced the challenge of the spread of overseas epidemic and
completed the main tasks of comprehensive production and operation objectives. In investment business the secondary
operation of existing project has achieved remarkable results.Emerging business made new progress. In smart parking business it won Hengyang smart parking project and the
multi-storey parking project of Shanghai Shuguang Hospital and the economic benefits gradually improved. In the livelihood
consumption business it has actively explored such fields as old residential area renovation smart campus construction
and the leasing and sales of prefabricated construction modules among which the scale of service car business in Xiong’an
area further increased. The integrated development business continued to improve the qualification the transformation
advantages of main business continued to show and the key projects are implemented and progressing orderly. The digital
business is gradually expanding and the operation quality and efficiency of Terminexus e-commerce platform continues to
be optimized.II.Performance during the reporting period
During the reporting period the Company realized the operating revenue amounting to RMB 22655000000
representing a year-on-year decrease of 7.89%; the net profit attributable to the shareholders of the listed company was
RMB 422000000 with a year-on-year decrease of 18%; the basic earnings per share was RMB 0.08with a year-on-year
decrease of 18.37%.1 Analysis of the performance
1. Analysis table of changes in the related items in profit statement and cash flow statement
Unit: Yuan Currency: CNY
Item Amount in the current period Amount in the same period of the last year Change (%)
Operating revenue 22655141652 24595587883 -7.89
Operating cost 19413265254 20590531322 -5.72
Selling and distribution expenses 105763639 122517036 -13.67
General and administrative expenses 937700839 1095131287 -14.38
Research and development expenditures 737468137 887096178 -16.87
Financial expenses 1117741864 1496586414 -25.31
Investment income 413517783 174600552 136.84
Credit impairment loss -138083561 -38761593 N/A
Assets impairment loss -213647223 -52494284 N/A
Income from disposal of assets 6755688 49091913 -86.24
Net cash flows from operating activities 819389020 1290213109 -36.49
Net cash flows from investing activities -1204413136 -1547161450 N/A
Net cash flows from financing activities 349410948 141933820 146.18102020
2. Analysis of revenue and cost
√ Applicable □ Not Applicable
The decrease in operating revenue was mainly caused by the delay of some foreign projects affected by the epidemic.The decrease in operating cost was mainly caused by the decrease in operating revenue.The decrease in selling and distribution expenses was mainly caused by the decrease in travel expenses affected by
the epidemic.The decrease in general and administrative expenses was mainly caused by the decrease in employee compensation.The decrease in the research and development expenditures was mainly caused by the decrease in the expensed
expenditures for research and development projects of the Company.The decrease in financial expenses was mainly caused by the decrease in interest expense on bank loans of the
Company.The increase in the investment income was mainly caused by the increase in the investment income from the disposal
of held-for-trading financial assets of the Company.The change in credit impairment loss was mainly caused by the increase in the Company’s provision for bad debts of
accounts receivable.The change in asset impairment loss was mainly caused by the increase in the Company’s provision for inventory
depreciation.The decrease in the income from disposal of assets was mainly caused by the decrease in the net gains from the
disposal of fixed assets.The changes in the net cash flows from operating activities were mainly caused by the decrease of tax returns received
by the Company.The changes in the net cash flows from investing activities were mainly caused by the investment recovery by the
Company and the increase in the cash received from investment income.The changes in the net cash flows from financing activities were mainly caused by the increase in cash received by the
Company from bank borrowings.
(1) Main businesses by sectors products and regions
Unit: Yuan Currency: CNY
Main business by products
Product Operating
Gross Year-on- year Year-on-year Year-on-year
revenue Operating cost profit rate change in operating change in change in gross (%) revenue (%) operating cost (%) profit rate (%)
Port machinery 14457042916 11813606078 18.28 -12.16 -10.78 -1.27
Heavy-duty equipment 1062669195 994642219 6.40 -28.76 -18.35 -11.93
“Building-Transfer”
project and engineering 2365760874 2220603949 6.14 -7.74 -8.58 +0.87
construction
Steel structure and related
income 3277507651 3170269443 3.27 20.97 23.29 -1.82
Marine transport and others 1233658739 1106003124 10.35 24.72 15.27 +7.36
Main business by regions
Region Operating
Gross Year-on- year Year-on-year Year-on-year
revenue Operating cost profit rate change in operating change in change in gross (%) revenue (%) operating cost (%) profit rate (%)
Chinese Mainland 12945383848 11967807784 7.55 4.85 6.85 -1.73
Chinese Mainland (export
sales) 1061063332 760474241 28.33 52.22 117.67 -21.55
Europe 2604103174 2329595327 10.54 -23.78 -22.06 -1.97
Asia (excluding Chinese
Mainland) 3289553492 2404009133 26.92 -5.20 -3.18 -1.52
North America 1345494819 948458084 29.51 -39.01 -44.78 +7.37
South America 444522956 451059902 -1.47 -53.85 -47.20 -12.77
Africa 468958316 264264072 43.65 -38.41 -48.55 +11.10
Oceania 237559438 179456270 24.46 -32.66 -42.45 +12.85
Notes to the main business by sectors products and regions
1)The amount listed in “Mainland China (export sales)” in “Main business by regions” was the main operation income11
from the export sales of this Company to the overseas subsidiaries of the Company and then sales to the related projects of
the domestic customers.2)Affected by the outbreak of COVID-19 the Company’s overseas projects were delayed resulting in the decrease in
overseas operating revenue by regions.
(2) Analysis table of cost-volume-profit relationship
□Applicable √ Not Applicable
(3) Cost analysis table
Unit: Yuan
By products
Proportion in Proportion of the one Year-
Product Items of cost structure Amount in the total cost in
Amount in the
same period of in the same period of on-year current period the current Notes
period (%) the last year
the last year in total change
costs (%) (%)
Port machinery Raw material cost labor cost and production cost 11813606078 61.19 13240912286 64.85 -10.78
Normal operating
fluctuations
Heavy-duty Raw material cost labor
equipment cost and production cost 994642219 5.15 1218182031 5.97 -18.35
Normal operating
fluctuations
Engineering Raw material cost labor
construction projects cost and production cost 2220603949 11.50 2428961159 11.90 -8.58
Normal operating
fluctuations
Steel structure and Raw material cost labor 3170269443 16.42 2571473994 12.59 23.29 Normal operating related income cost and production cost fluctuations
Marine transport Raw material cost labor
and others cost and production cost 1106003124 5.73 959513561 4.70 15.27
Normal operating
fluctuations
Other information about cost analysis
None
(4) Particulars about main customers and suppliers
√ Applicable □ Not Applicable
The sales volume of top 5 customers was RMB 4.18657 billion accounting for 19% of total annual sales volume; the
sales volume of the related parties in that of top 5 customers was RMB 897.72 million accounting for 4% of total annual
sales volume.The purchase amount of top 5 suppliers was RMB 2.95671 billion accounting for 12% of total annual purchase amount;
the purchase of the related parties in that of top 5 suppliers was RMB 645.33 million accounting for 3% of total annual
purchase amount.Other description
None
3. Expenses
√ Applicable □ Not Applicable
The decrease in selling and distribution expenses was mainly caused by the decrease in travel expenses affected by
the epidemic.The decrease in general and administrative expenses was mainly caused by the decrease in employee compensation.The decrease in the research and development expenditures was mainly caused by the decrease in the expensed
expenditures for research and development projects of the Company.The decrease in financial expenses was mainly caused by the decrease in interest expense on bank loans of the
Company.4. Investment in R&D
(1) Detail table of investment in R&D
√ Applicable □ Not Applicable
Unit: Yuan
Current expensed investment in R&D 737468137
Current capitalized investment in R&D 111203919
Total investment in R&D 848672056
Proportion of total investment in R&D in operating revenue (%) 3.75
Number of R&D employees in the Company 1617
Proportion of number of R&D employees in the total employees of the Company (%) 18.6
Proportion of capitalized investment in R&D (%) 13.10122020
(2) Explanation
□Applicable √ Not Applicable
5. Cash flow
√ Applicable □ Not Applicable
The net cash flows from operating activities were RMB 819 million mainly caused by the decrease of tax returns
received by the Company. The net cash flows from investing activities were RMB -1.204 billion mainly caused by the
investment recovery and the increase in cash received from investment income. The net cash flows from financing activities
were RMB 349 million mainly caused by the increase in the cash received from borrowings by the Company.2 Explanation for the significant changes in profits due to non-main business
□Applicable √ Not Applicable
3 Analysis of assets and liabilities
√ Applicable □ Not Applicable
1. Assets and liabilities
Unit: Yuan
Amount at Proportion of the Proportion of the
Item the end of the amount at the end
Amount at
the end of the amount at the end of
Year- on-
of the current period the previous period year change Notescurrent period in total assets (%) previous period in the total assets (%) (%)
Accounts receivable 7227065255 9.11 4966175528 6.67 45.53
Inventories 22325839116 28.15 8561251580 11.51 160.78
Outstanding payments for
construction completed — 0.00 12434158624 16.71 -100
Contract assets 2063296890 2.60 — 0.00 N/A
Non-current assets due within one
year 1884370444 2.38 1313203581 1.76 43.49
Deferred income tax assets 752960672 0.95 486197635 0.65 54.87
Other non-current assets 837004289 1.06 161337287 0.22 418.79
Other non-current financial assets 330094057 0.42 — 0.00 N/A
Advances to suppliers 4893675 0.01 822987986 1.11 -99.41
Contract liabilities 11195309083 14.11 — 0.00 N/A
Amount settled for uncompleted work — 0.00 1679950879 2.26 -100
Payroll payable 188799969 0.24 329978281 0.44 -42.78
Other payables 481065700 0.61 711389996 0.96 -32.38
Non-current liabilities due within
one year 1374465319 1.73 7287484513 9.79 -81.14
Long-term borrowings 16850299742 21.24 8413339986 11.31 100.28
Estimated liabilities 261072318 0.33 484000772 0.65 -46.06
Other description
The increase in accounts receivable was mainly caused by the adjustment of the beginning amount under new revenue
standard.The increase in inventories was mainly caused by the reclassification of outstanding payments for construction
completed under new revenue standard implemented by the Company.The decrease in outstanding payments for construction completed was mainly caused by the reclassification of
outstanding payments for construction completed under new revenue standard implemented by the Company.The increase in contract assets was mainly caused by the reclassification of outstanding payments for construction
completed under new revenue standard implemented by the Company.The increase in the non-current assets due within one year was mainly caused by the increase in the long-term
receivables due within one year.The increase in deferred income tax assets was mainly caused by the impact of the adjustment of undistributed profits
at the beginning of the year under new revenue standard on enterprise income tax.13
The increase in other non-current assets was mainly caused by the reclassification of the contract warranty balance
under new revenue standard implemented by the Company.The increase in other non-current financial assets was mainly caused by the fair value of the remaining equity after the
Company lost the control of Tianhe Mechanical Equipment Manufacturing Co. Ltd.The decrease in advances from customers was mainly caused by the reclassification of advances from customers under
new revenue standard implemented by the Company.The increase in contract liabilities was mainly caused by the reclassification of amount settled for uncompleted work and
advances from customers under new revenue standard implemented by the Company.The decrease in amount settled for uncompleted work was mainly caused by the reclassification of amount settled for
uncompleted work under new revenue standard implemented by the Company.The decrease in payroll payable was mainly caused by the decrease in the accrued bonus of the Company.The decrease in other payables was mainly caused by the Company’s payment of investment funds and other funds to
CCCC.The decrease in the non-current liabilities due within one year was mainly caused by the decrease in the long-term bank
borrowings due within one year.The increase in long-term borrowings was mainly caused by the increase in long-term bank borrowings of the Company.The decrease in estimated liabilities was mainly caused by the decrease in estimated after-sales service cost of the
products.2. Particulars about main restricted assets by the end of the reporting period
√ Applicable □ Not Applicable
Item Book value at the end of the period Reason for restriction
Monetary funds 50332396 Special fund letter of guarantee from the bank and guarantee fund for L/C collected from the overseas projects and deposited in the overseas supervision account
Fixed assets 2821018550 Collateral for loan
Long-term receivables 5614309162 Hypothecation for loan
Total 8485660108 /
3. Other description
□Applicable √ Not Applicable
4 Analysis of operational information of the industry
√ Applicable □ Not Applicable
During the reporting period the value of the newly concluded contracts by the Company on the port machinery was
USD 2.933 billion which was basically the same as that in 2019. The value of the newly concluded contracts on marine
engineering products and steel structure was USD 1.041 billion with a year-on-year decrease of 28.84% among which the
one on steel structure was USD 503 million. The value of the newly concluded contracts on investment business was RMB
2.886 billion with a year-on-year increase of 41.7%.In the port machinery industry affected by COVID-19 the investment progress of overseas customers is slowing down
and the number of overseas orders is decreasing. Due to the development needs domestic customers have increased
their investments in port machinery and equipment and the proportion of newly signed domestic orders has increased.The increase in market demand for traditional new equipment has slowed down. Businesses such as the construction of
automated terminals after-sales maintenance and renovation of existing equipment have become new bright spots in the
market. With the official commercialization of 5G technology the cutting-edge technologies such as 5G artificial intelligence
and big data will accelerate the transformation and upgrading of the port and shipping industry.In the offshore industry as the country attaches more importance to the development of the marine economy the
demand for offshore supporting services such as energy exploitation transportation and installation will increase to a certain
extent but the trend of international oil prices still brings uncertainty to the recovery time of the offshore industry.The steel structure industry benefited from the increase in investment in infrastructure and the overall situation of the
industry is more optimistic. At present the Company focuses on the development of large heavy and special steel structure
business and the development trend is sound. However due to the low access threshold the competition is fiercer and the
efficiency needs to be further improved.The investment industry continues to be optimized driving the entire industry chain to a new development track.Domestic investment in industries such as manufacturing infrastructure and green energy has entered a stage of high-
quality development. For a long period of time in the future funds will continue to be biased towards the common benefit of142020
supply and demand advanced manufacturing and livelihood construction with multiplier effects infrastructure construction
and other fields.For emerging industries the exploration and application of 5G and digital technologies will continue to empower
manufacturing. The reconstruction of old communities the construction of prefabricated buildings and the construction of
smart cities are in line with the needs of the times and present strong development potential. With the support of national
policies the integrated development industry has gradually optimized its market environment gradually consolidated its
industrial foundation and integrated its content.5 Analysis of investment
1. Overall analysis of external equity investment
√ Applicable □ Not Applicable
Investment amount by the end of reporting period 5027018064
Changes in investment amount (RMB) 382244511
Investment amount in the same period of the last year 4644773553
Change in investment amount (%) 8.23
(1) Significant equity investment
□Applicable √ Not Applicable
(2) Significant non-equity investment
□Applicable √ Not Applicable
(3) Financial assets measured at fair value
√ Applicable □ Not Applicable
Stock equity held in other listed companies
Stock Initial Initial Final Book value Profit or loss
Changes in
Stock code abbreviation investment shareholding shareholding at the end of in reporting
owners’ equity Accounting Source of
cost ratio (%) ratio (%) the period period during the subject sharesreporting period
Held-for-trading Purchase on
03969 CRSC 617854000 1.16 1.16 269294333 -150959680 -150959680
financial assets market
Held-for-trading Purchase on
06198 Qingdao Port 308515588 1.59 1.59 415582601 -58710297 -58710297
financial assets market
Held-for-trading
300095 Huawu Stock 11071606 5.88 5.88 228142450 81991399 81991399 Contribution
financial assets
COSCO Held-for-trading
601919 SHIPPING 420000000 0.91 0.45 679011665 423923787 423923787 Subscription
HOLDINGS financial assets
Stock equity held in financial enterprises
Changes
Object Initial Initial Final Book value at Profit or loss in owners’
name investment shareholding shareholding the end of the in reporting equity during
Accounting Source of
cost ratio ratio period period the reporting subject shares
period
Shenwan Held-for-trading
Hongyuan 200000 ﹤0.01 ﹤0.01 1154324 47226 47226 Subscriptionfinancial assets
6 Sales of significant assets and equities
□Applicable √ Not Applicable15
7 Analysis of the primary holding companies and the joint-stock companies
√ Applicable □ Not Applicable
Unit: Yuan
Company Name Main product or services Registered Assets size Net profit/capital (loss)
Construction and installation of large-scale port equipment
Shanghai Zhenhua Heavy engineering vessels offshore heavy equipment mechanical
Industries Group (Nantong) equipment gear box for wind power generation equipment; large-
Transmitter Co. Ltd. sized reverse branch transmission mechanism dynamic positioning
738878329 1833587488 89433610
large-sized anchor windlass offshore oil platform lifting device and
components; design and manufacturing of the accessories.Nanjing Ninggao New Channel Engaged in the construction investment and management of
Construction Co. Ltd Nanjing-Gaochun new channel project. 100000000 595688068 26778436
Shanghai Zhenhua Shipping Co. Operation of international offshore sea transportation; ordinary
Ltd cargo liner traffic in the middle and lower reaches of Yangtze River; 120000000 1775588202 59592964transportation of port machinery.Shanghai Zhenhua Port Design manufacturing and sales of port machinery engineering
Machinery (Hong Kong) Co. Ltd. vessel steel structure and other parts HKD 50000000 10870885678 35397463
Sales of port loading and unloading machine bulk cargo and
Shanghai Zhenhua Heavy container machine port engineering vessels (including floating
Industries Port Machinery General engineering crane) material handling mechanical products and
Equipment Co. Ltd. parts sales and technical services installation and maintenance
2184730000 3225607726 48936687
technical consultation of all types of machine and equipment key
parts of the raw materials and accessories equipment.Installation of heavy port equipment engineering vessels heavy
Nantong Zhenhua Heavy metal structure and its parts; manufacturing and installation of gear
Equipment Manufacturing Co. box container yard crane super heavy-duty bridge steel structure 2500000000 6287765184 12140203
Ltd. heavy marine machinery equipment; leasing of cranes; specialized
contracting of steel structures etc.ZPMC Qidong Marine Engineering
Co. Ltd. Machinery manufacturing 303000000 2565416604 -188832950
Agency of international land transport air transport ocean
shipping and domestic freight; sales of large-scale port equipment
Shanghai Zhenhua Ocean engineering vessel equipment and marine materials at home
Engineering Service Co. Ltd and abroad; construction of ocean engineering and leasing of 100000000 871685063 17615479engineering vessels; import and export of goods and technologies
transit trade trade between enterprises and trade agency within the
free trade zone.Zhenhua Pufeng Wind Energy
(HongKong) Co. Ltd. Installation of offshore wind turbine USD 16326531 186954 -2207576
CCCC Financial Leasing Co. Ltd. Finance lease 5000000000 47306443892 526789103
China Communications
constructionUSA. Inc Construction of port waterway highway and bridge. USD 50000000 235069766 -7042723
CCCC Estate Yixing Co. Ltd. Real estate development 900000000 1460500234 29913101
Fabrication and installation of steel structure; construction of
Jiangsu Longyuan Zhenhua the foundation for offshore wind power facilities installation and
Marine Engineering Co. Ltd maintenance of equipment; construction and maintenance of 260000000 3471495984 30359575submarine cable system construction of marine engineering;
installation and maintenance of equipment and leasing of equipment.Greenland Heavylift (Hongkong)
Limited Marine transport USD 91975158 2074726597 -54103269
8 Particulars about structured entities controlled by the Company
□Applicable √ Not Applicable
III. Discussion and analysis of the future development of the Company
1 Industrial structure and trend
√ Applicable □ Not Applicable
The development of port machinery industry is closely related to the development of shipping industry. The recovery
and high-quality development of shipping industry will further promote the port construction in particular the trend of digital162020
development and the demand for epidemic prevention and control will speed up the intelligent development of ports.The proposal of “building a maritime power” has brought new opportunities for the development of offshore industry.As one of the new energy sources offshore wind power will attract enterprises to increase resource investment and
construction and further promote the collaborative development of offshore engineering equipment manufacturing and
marine economy.Under the background of rapid development of 5G and other emerging technologies “new infrastructure” has become
an important driving force for the transformation of traditional infrastructure and the development of digital economy in China
and even in the world. The new integrated development mode of public transport and urban construction fields such as
railway highway and airport will bring opportunities for the transformation and upgrading of traditional infrastructure industry.The “Belt and Road” initiative has been recognized and supported by the countries along the line. It is in the deep
development period and brings new dynamic to the adjustment of regional planning the optimization of industrial layout andthe reconstruction of supply value. The new development pattern of “Mutual promotion of domestic and international dualcirculation with domestic grand circulation being the mainstay” will accelerate the construction and development of important
national strategic areas and will also bring huge market opportunities for the transformation and upgrading of manufacturing
industry the development of smart industry people’s livelihood consumption business and digital industry etc.2 Development strategy of the Company
√ Applicable □ Not Applicable
By taking “equipment manufacturing” as the entity “capital operation” and “Internet” as two wings it aims to build “Flag +Flagship” of Chinese national industry. “One Entity with Two Wings” strategy is a new strategy for transformation and upgradeof the Company after objectively analyzing the development stage and orientation of the Company based on national and
industrial development trend at present and in future around “Industry 4.0” and “Made in China 2025” by firmly seizing
the development opportunities of the reform of state-owned enterprises “Double Hundred Action” in combination with the
development features of equipment manufacturing industry. “Capital operation” will help the Company to extend the industrial
chain of the port machine business and create the whole industrial chain of marine heavy industry and offshore wind power;
help the Company and the customers as well as the partners to form a community of a shared future with the capital as the
tie. The digitized transformation and upgrade of the Company under “Internet” can accelerate the upgrade of the information
system in an all-round way and create the cloud platform through the top information-oriented design of the Company to offer
more convenient efficient intelligent and integrated service to the global customers. Meanwhile by using 5G technology as
a carrier we continue to enrich the concept of "Internet" and use smart port construction as a breakthrough to further expand
the rich connotation of "+ 5G" and apply 5G technology to various fields such as strategy design manufacturing products
services etc. to promote the quality revolution efficiency revolution power revolution of the Company.3 Operation plan
√ Applicable □ Not Applicable
Guided by the new development concept for businesses the Company will closely follow the national development
strategy seize the new market opportunities brought by the new development pattern and continuously enhance its core
competitiveness through scientific market research comprehensive deepening of reform and increasing scientific and
technological innovation.For port machinery business of the Company it will aim to maintain the leading position in the industry and seize the
global intelligent terminal development opportunity to popularize the intelligent terminal; in the meanwhile it will pay close
attention to the new changes in the industry the new needs of users and the new trends of competitors brought by the
domestic port integration; make overall arrangement of the internal resources innovate the business model increase the
communication with users and implement high-end differentiated competition. Offshore business will adhere to differentiated
development and promote the implementation of high-quality offshore projects based on the industry development trend
while improving the performance ability and promoting the resolution of offshore asset risks. Steel structure business will
focus on the opportunities such as economic dual circulation aim at key areas expand business channels and enhance
the added value of steel structure products. The marine service business will rationalize the allocation of resources on
the premise of ensuring the competitive advantage of the Company’s primary business and will pay great attention to the
latest policies of the state on offshore wind power business and achieve economic benefits with professional industrial
chain through strategic cooperation and differentiated competition. Electrical business will systematically summarize and
analyze the existing business steadily promote electrical related business and continue to promote EZ brand. For general
contracting business it will give full play to the advantages of the existing projects actively expand other projects in the
region and improve the business scale. For investment business it will further highlight the main business strengthen the
lifecycle management of investment projects and improve the scientificity and rate of return of the investment.In emerging industries the smart industry should take advantage of the development trend of artificial intelligence big
data cloud computing and other technologies and continue to march into the field of intelligent transportation and smart
city construction. People’s livelihood consumption should seize the mass market and promote differentiated development.Integrated development should follow the national policy identifies the market position and fully embodies the corporate17
social responsibility. Digital industry should grasp the development trend of 5G continuously accumulate data and take the
advantages of data to create scale and efficiency.4 Potential risks
√ Applicable □ Not Applicable
Market risk: it mainly includes macroeconomic and industry cycle fluctuation risk. The main business of the Company
is closely related to the operation and development of macro economy and the industry cycle of the shipping industry. The
slowdown of global economy the trade friction between China and USA and the challenges from the deglobalization trend
on the global economy impose some uncertainties on the development of the Company. Although the shipping industry is
slightly resuscitative the recovery speed is still uncertain and the Company’s upstream customers are still cautious about
the new capital investment in ports and terminals.Countermeasures: the Company will establish a management system for the scientific study and judgment of the macro
political and economic situation identify the systematic risks in time and make risk response plans in advance. In the
meanwhile the Company will focus on user needs optimize products improve services look for increment from the stock
and continuously optimize its business structure and profit model.Financial risk: it mainly includes interest rate and exchange rate change risk. The Company’s interest rate risk mainly
comes from interest-bearing liabilities. In addition a certain proportion of overseas business brings a certain scale of foreign
exchange revenue and expenditure to the Company.Countermeasures: the Company will strengthen the dynamic study and judgment of capital situation further strengthen
the overall capital management broaden financing channels and rationalize financing costs. For exchange rate risk control
the Company will control exchange rate risks through locking in the forward exchange rate gradually reduce the foreign
exchange liabilities pay attention to the research on policies and strategies of foreign exchange risk management closely
concern the changes in exchange rates regularly analyze the trend of exchange rate strictly conduct the approval procedure
related to the transaction of the financial derivatives do well in statistics of the products currencies and exchange rates
further tamp the basic work of the foreign exchange management and reduce the Company’s exchange rate risk.Since its outbreak COVID-19 has had a certain impact on the Company’s production and operation. The company is
deeply aware of the arduousness complexity and long-term nature of epidemic prevention and control and will always take
epidemic prevention and control as the primary guarantee for promoting the daily production and operation of the enterprise.The Company will pay close attention to and analyze the epidemic situation at home and abroad and carry out normalized
epidemic prevention and control.5 Others
□Applicable √Not applicable
V. Explanation for non-disclosure in accordance with the accounting standard due to being not applicable to the
provisions of the standard or state secret and business secrete and other special reasons
□Applicable √Not applicable182020
Section V Important Events
I. Proposal for profit distribution of ordinary shares or convention of capital reserves into bonus shares
1 Formulation implementation or adjustment of cash dividend distribution policies
√Applicable □Not applicable
According to the requirements of the Circular on Further Implementation of Relevant Matters Concerning Cash
Dividend Distribution of Listed Companies (ZJF [2012] No. 37) issued by the CSRC as proposed by the 10th meeting of
the Company’s fifth session of Board held on August 21 2012 amendments were made to the Articles of Association of the
Company concerning profit distribution and cash dividends policy and as a result the dividend distribution standard and
proportion became clearer related decision making process and mechanism were compete and the minority shareholders’
legal rights and interests were fully protected giving them the opportunity to fully express their views and demands.On August 18 2020 the A-share profit distribution plan of the Company for 2019 was completed by distributing
dividends in cash.On August 27 2020 the B-share profit distribution plan of the Company for 2019 was completed by distributing
dividends in cash.2 The Company’s plan or proposal for profit distribution of ordinary shares plan or proposal for the convention
of capital reserves into bonus shares in recent 3 years (including the reporting period)
Unit: Yuan Currency: CNY
Net profit attributable
Ratio of the net profit
Bonus to the ordinary
Dividend for Shares attributable to the
Year for shares Amount of shareholders of the
every 10 shares converted for ordinary shareholders
dividend for every cash dividend listed company in the
(Yuan) (tax every 10 shares of the listed company
distribution 10 shares (tax included) consolidated statement
included) (share) in the consolidated
(share) in the year for dividend
statements (%)
distribution
2020 0 0 0 0 422240299 0
2019 0 0.5 0 263417675 514930143 51.16
2018 0 0.5 0 263417675 443005092 59.46
3 Shares repurchased by offer in cash and included in cash dividends
□Applicable √Not applicable
4 If the profit is positive in the reporting period and the profit of the parent company available for distribution
to the ordinary shareholders is positive but the Company does not represent the plan or proposal for profit
distribution of ordinary shares in cash the Company shall disclose in detail the reasons and the purpose and use
plan of the undistributed profit
√Applicable □Not applicable
The reason for not representing the plan or proposal for profit distribution of ordinary
shares in cash though the profit is positive and the profit of the parent company available Purpose and use plan of the
for distribution to the ordinary shareholders is positive in the reporting period undistributed profit
According to the relevant provisions of the Circular on Further Implementation of Relevant Matters
Concerning Cash Dividend Distribution of Listed Companies and the Regulatory Guidelines for Listed
Companies No. 3 - Cash Dividends of Listed Companies issued by the CSRC and the articles of
association in order to ensure the long-term healthy and sustainable development of the Company and For business development.safeguard the shareholders’ long-term interests the Company will not distribute profits or transfer capital
reserve to share capital in view of the business performance in 2020.19
II. Fulfillment of commitments
1 Commitments of the actual controller shareholders related parties acquirer companies of the Company in the
reporting period or ongoing at the period-end
□Applicable √Not applicable
2 If there is earnings forecast for the assets or projects of the Company and the reporting period is still in the
earnings forecast period the Company shall explain whether the asset or project reaches the original earnings
forecast and give the reasons
□Reached □Failing to reach √Not applicable
3 Fulfillment of commitments on the performance and its impacts on goodwill impairment test
□Applicable √Not applicable
III. Fund occupation and progress in returning scheme during the reporting period
□Applicable √Not applicable
IV. Explanation of the Company for Accounting Firm’s “auditors’ report with nonstandard opinions”
□Applicable √Not applicable
V. Analysis and explanation of the Company of the causes and the impacts of the major changes in accounting
policies and accounting estimates or correction of significant accounting errors
1 Analysis and explanation of the Company on the causes and the impacts of the changes in accounting policies
and accounting estimates
√Applicable □Not applicable
See V.44 in Section XI for details.2 Analysis and explanation of the cause of correction of significant accounting errors and their impacts by the
Company
□Applicable √Not applicable
3 Communication with former CPA firm
□Applicable √Not applicable
4 Other description
□Applicable √Not applicable
VI. Engagement and dismissal of the public accounting firm
Unit: Yuan Currency: CNY
Now engaging
Name of the domestic accounting firm Ernst & Young LLP. (Special General Partnership)
Remuneration of domestic accounting firm 4700000
Audit term of the domestic accounting firm 5
Name Remuneration
Accounting firm performing internal control audit Ernst & Young LLP. (Special General Partnership) 450000
Particulars about the engagement and dismissal of the accounting firm
□Applicable √Not applicable202020
Particulars about reappointment of the accounting firm in the auditing period
□Applicable √Not applicable
VII. Risk of suspension of the listing
1 Cause for shares suspended from listing
□Applicable √Not applicable
2 Countermeasures to be taken by the Company
□Applicable √Not applicable
VIII. Termination of the listing and its reasons
□Applicable √Not applicable
IX. Events related to bankruptcy and reorganization
□Applicable √Not applicable
X. Major lawsuit and arbitration issues
√Existence of major lawsuit and arbitration in the year □No major lawsuit or arbitration in the year
1 Lawsuit and arbitration already disclosed in provisional announcement without follow-up progress
□Applicable √Not applicable
2 Lawsuit and arbitration not disclosed in provisional announcement or with follow-up progress
√Applicable □Not applicable
Unit: 10000Yuan Currency: CNY
In the reporting period:
Party Amount Estimated Results of Execution of
Plaintiff Defendant bearing Type of liabilities and Progress
(applicant) (respondent) joint lawsuit and Background of the lawsuit (arbitration)
involved
in lawsuit amount caused in lawsuit
the lawsuit adjudication
arbitration by lawsuit (arbitration) (arbitration) of lawsuit liabilities (arbitration) (arbitration) or not and impacts (arbitration)
At the end of February 2014 the Company
completed the acquisition of the former
Jiangsu Daoda Ocean Engineering Co.Ltd through capital increase and held 67%
of the shares. At the same time it was
Shanghai agreed that the losses of the company
Zhenhua was borne by the former shareholders
Heavy Nantong including Nantong Huafu Port Co. Ltd Li Industries Huafu Port Aidong and Zhao Xiaohua before February Co. Ltd Co. Ltd Li None Lawsuit 28 2014. During the subsequent business The case is still and ZPMC Aidong and process it was found that the former Daoda
36872.22 0 pending Not yet judged Not yet judged
Qidong Zhao Xiaohua Company untruthfully disclosed some Marine matters of lawsuit or debts resulting in a
Engineering series of losses of the Company. Through
Co. Ltd. the related audit and readjustment etc. it
was deemed that the loss of RMB 368.7222
million Yuan should be in borne in the
former shareholders and the lawsuit was
prosecuted again after an inconclusive
press for payment.3 Other description
□Applicable √Not applicable
XI. Punishment to the listed Company and its directors supervisors senior executives controlling shareholder
actual controller and acquirer and the rectification
□Applicable √Not applicable
XII. Particulars about the credit conditions of the Company and its controlling shareholder and the actual controller
during the reporting period
□Applicable √Not applicable21
XIII. The Company’s equity incentive plan employee stock ownership plan or other incentives to the employees and
their impacts
1 Related incentives disclosed in provisional announcement without progress or change in follow-up
implementation
□Applicable √Not applicable
2 Incentives not disclosed in provisional announcement or with follow-up progress
Equity incentive
□Applicable √Not applicable
Other description
□Applicable √Not applicable
Information about employee stock ownership plan
□Applicable √Not applicable
Other incentives
□Applicable √Not applicable
XIV. Material related transactions
1 Related transactions relevant to routine business
1. Events disclosed in provisional announcement without progress or changes in follow-up implementation
□Applicable √Not applicable
2. Events disclosed in the provisional announcement with progress or changes in follow-up implementation
□Applicable √Not applicable
3. Events not disclosed in provisional announcements
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Reason
Proportion for great
Type of Pricing Price of in the Settlement differences
Related party Relationship related Content of related principle related Amount of related amount mode of Market price between
transaction transaction of related transaction transaction of similar associated the bargain transaction transactions transaction price and
(%) market
price
China Road & Bridge Holding subsidiary of Selling goods/ Project income/ Pricing based
897728442 897728442 0.30 Cash 897728442 /
Corporation parent company other inflows lease of assets on market price
CCCC Third Harbor Holding subsidiary of Selling goods/ Project income/ Pricing based
424401835 424401835 0.14 Cash 424401835 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
CCCC Second Harbor Holding subsidiary of Selling goods/ Project income/ Pricing based
283456305 283456305 0.10 Cash 283456305 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
Jiangsu Longyuan Zhenhua Selling goods/ Project income/ Pricing based
Joint venture 231829678 231829678 0.08 Cash 231829678 /
Marine Engineering Co. Ltd other inflows lease of assets on market price
Road & Bridge International Holding subsidiary of Selling goods/ Project income/ Pricing based
229793506 229793506 0.08 Cash 229793506
Co. Ltd. parent company other inflows lease of assets on market price
CCCC Third Highway Holding subsidiary of Selling goods/ Project income/ Pricing based
173821696 173821696 0.06 Cash 173821696 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
CCCC Second Highway Holding subsidiary of Selling goods/ Project income/ Pricing based
138705156 138705156 0.05 Cash 138705156 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
CCCC Electrical and Mechanical Holding subsidiary of Selling goods/ Project income/ Pricing based
88938053 88938053 0.03 Cash 88938053 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
China Communications Holding subsidiary of Selling goods/ Project income/ Pricing based
78205835 78205835 0.03 Cash 78205835 /
Construction Company Ltd. parent company other inflows lease of assets on market price
CCCC First Harbor Consultants Holding subsidiary of Selling goods/ Project income/ Pricing based
69444739 69444739 0.02 Cash 69444739 /
Co. Ltd. parent company other inflows lease of assets on market price
CCCC Tianjin Industry and Holding subsidiary of Selling goods/ Project income/ Pricing based
50952323 50952323 0.02 Cash 50952323 /
Trade Co. Ltd. parent company other inflows lease of assets on market price
ZPMC-OTL Marine Contractor Selling goods/ Project income/ Pricing based
Joint venture 38016390 38016390 0.01 Cash 38016390 /
Limited other inflows lease of assets on market price
Selling goods/ Project income/ Pricing based
ZPMC Southeast Asia Pte. Ltd Associated company 37632123 37632123 0.01 Cash 37632123 /
other inflows lease of assets on market price222020
Reason
Proportion for great
Type of Pricing in the Settlement differences
Related party Relationship related Content of related principle
Price of
related Amount of related amount mode of Market price between
transaction transaction of related transaction transaction of similar associated the bargain transaction transactions transaction price and
(%) market
price
The First Construction
Holding subsidiary of Selling goods/ Project income/ Pricing based
Company of CCCC Second 36724138 36724138 0.01 Cash 36724138 /
parent company other inflows lease of assets on market price
Harbor Engineering Co. Ltd
CCCC - SHEC Third Highway Holding subsidiary of Selling goods/ Project income/ Pricing based
34008547 34008547 0.01 Cash 34008547 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
Installation Engineering Co.Holding subsidiary of Selling goods/ Project income/ Pricing based
Ltd. of CCCC First Harbor 22123894 22123894 0.01 Cash 22123894 /
parent company other inflows lease of assets on market price
Engineering Co. Ltd.CCCC First Harbor Engineering Holding subsidiary of Selling goods/ Project income/ Pricing based
20139620 20139620 0.01 Cash 20139620 /
Co. Ltd. parent company other inflows lease of assets on market price
CCCC First Highway Holding subsidiary of Selling goods/ Project income/ Pricing based
14921008 14921008 0.01 Cash 14921008 /
Engineering Co. Ltd. parent company other inflows lease of assets on market price
China Harbor Engineering Co. Holding subsidiary of Selling goods/ Project income/ Pricing based
13927295 13927295 0.00 Cash 13927295 /
Ltd. parent company other inflows lease of assets on market price
CCCC Tunnel Engineering Co. Holding subsidiary of Selling goods/ Project income/ Pricing based
12218362 12218362 0.00 Cash 12218362 /
Ltd. parent company other inflows lease of assets on market price
CCCC Yancheng Construction Holding subsidiary of Selling goods/ Project income/ Pricing based
11855952 11855952 0.00 Cash 11855952 /
Development Co. Ltd. parent company other inflows lease of assets on market price
CCCC Shanghai Equipment Holding subsidiary of Selling goods/ Project income/ Pricing based
8761075 8761075 0.00 Cash 8761075
Engineering Co. Ltd. parent company other inflows lease of assets on market price
The Third Engineering Company
Holding subsidiary of Selling goods/ Project income/ Pricing based
of CCCC Fourth Harbor 6559140 6559140 0.00 Cash 6559140
parent company other inflows lease of assets on market price
Engineering Co. Ltd
CCCC First Highway Electrification Holding subsidiary of Selling goods/ Project income/ Pricing based
6129210 6129210 0.00 Cash 6129210
Engineering Co. Ltd parent company other inflows lease of assets on market price
No.3 Co. of The Second
Holding subsidiary of Selling goods/ Project income/ Pricing based Navigational Engineering 5053060 5053060 0.00 Cash 5053060
parent company other inflows lease of assets on market price
Bureau CCCC
CCCC - SHEC Electrical Holding subsidiary of Selling goods/ Project income/ Pricing based
4731690 4731690 0.00 Cash 4731690
Engineering Co. Ltd. parent company other inflows lease of assets on market price
CCCC Tianhe Mechanical
Holding subsidiary of Selling goods/ Project income/ Pricing based
Equipment Manufacturing Co. 4698839 4698839 0.00 Cash 4698839
parent company other inflows lease of assets on market price
Ltd
Beijing Rate Electronic Holding subsidiary of Selling goods/ Project income/ Pricing based
3550889 3550889 0.00 Cash 3550889
Technology Developing Co. Ltd. parent company other inflows lease of assets on market price
CCCC Xi’an Road Construction Holding subsidiary of Selling goods/ Project income/ Pricing based
1327434 1327434 0.00 Cash 1327434
Machinery Co. Ltd. parent company other inflows lease of assets on market price
CCCC International Shipping Holding subsidiary of Selling goods/ Project income/ Pricing based
1044785 1044785 0.00 Cash 1044785
Co. Ltd parent company other inflows lease of assets on market price
Road & Bridge International Holding subsidiary of Selling goods/ Project income/ Pricing based
78509 78509 0.00 Cash 78509
Co. Ltd. parent company other inflows lease of assets on market price
No.2 Engineering Co. Ltd. Consigned
Holding subsidiary of Receipt of Pricing based
of CCCC Third Harbor processing for the 691422066 691422066 0.32 Cash 691422066 /
parent company services on market price
Engineering Co. Ltd. Company
Consigned
CCCC Fourth Highway Holding subsidiary of Receipt of Pricing based
processing for the 306195275 306195275 0.14 Cash 306195275 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
CCCC Second Harbor Holding subsidiary of Receipt of Pricing based
processing for the 301152978 301152978 0.14 Cash 301152978 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
CCCC Third Harbor Holding subsidiary of Receipt of Pricing based
processing for the 204828721 204828721 0.10 Cash 204828721 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
CCCC First Highway Holding subsidiary of Receipt of Pricing based
processing for the 201690439 201690439 0.09 Cash 201690439 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
Holding subsidiary of Receipt of Pricing based
CCCC Tianjin Dredging Co. Ltd. processing for the 100525545 100525545 0.05 Cash 100525545 /
parent company services on market price
Company
Consigned
CCCC Third Highway Holding subsidiary of Receipt of Pricing based
processing for the 60479325 60479325 0.03 Cash 60479325 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
Receipt of Pricing based
ZPMC Southeast Asia Pte. Ltd Associated company processing for the 59340652 59340652 0.03 Cash 59340652 /
services on market price
Company
Shanghai Communications Consigned
Holding subsidiary of Receipt of Pricing based
Construction Contracting Co. processing for the 36281828 36281828 0.02 Cash 36281828 /
parent company services on market price
Ltd. Company23
Reason
Proportion for great
Type of Pricing in the Settlement differences
Related party Relationship related Content of related principle
Price of
related Amount of related amount mode of Market price between
transaction transaction of related transaction transaction of similar associated the bargain transaction transactions transaction price and
(%) market
price
No. 2 Engineering Co. Ltd. Consigned
Holding subsidiary of Receipt of Pricing based
of CCCC Fourth Highway processing for the 32430368 32430368 0.02 Cash 32430368 /
parent company services on market price
Engineering Co. Ltd. Company
CCCC Water Transportation Consigned
Holding subsidiary of Receipt of Pricing based
Planning and Design Institute processing for the 26070990 26070990 0.01 Cash 26070990 /
parent company services on market price
Co. Ltd. Company
Consigned
Road & Bridge East China Holding subsidiary of Receipt of Pricing based
processing for the 23620159 23620159 0.01 Cash 23620159 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
CCCC Second Highway Holding subsidiary of Receipt of Pricing based
processing for the 21674421 21674421 0.01 Cash 21674421 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
CCCC First Highway Fifth Holding subsidiary of Receipt of Pricing based
processing for the 17768785 17768785 0.01 Cash 17768785 /
Engineering Co. Ltd. parent company services on market price
Company
Consigned
CCCC Worldcom (Chongqing) Holding subsidiary of Receipt of Pricing based
processing for the 14309194 14309194 0.01 Cash 14309194 /
Heavy Industries Co. Ltd. parent company services on market price
Company
Consigned
China Road & Bridge Holding subsidiary of Receipt of Pricing based
processing for the 10988748 10988748 0.01 Cash 10988748 /
Corporation parent company services on market price
Company
Consigned
CCCC Second Highway Holding subsidiary of Receipt of Pricing based
processing for the 5420288 5420288 0.00 Cash 5420288 /
Consultants Co. Ltd. parent company services on market price
Company
Consigned
China Communications Holding subsidiary of Receipt of Pricing based
processing for the 4388549 4388549 0.00 Cash 4388549 /
Construction Company Ltd. parent company services on market price
Company
Consigned
CCCC Third Harbor Consultants Holding subsidiary of Receipt of Pricing based
processing for the 3577982 3577982 0.00 Cash 3577982 /
Co. Ltd. parent company services on market price
Company
ZPMC Mediterranean Liman Consigned
Holding subsidiary of Receipt of Pricing based
Makinalari Ticaret Anonim processing for the 3690480 3690480 0.00 Cash 3690480 /
parent company services on market price
Sirketi Company
CCCC Tianhe Mechanical Consigned
Holding subsidiary of Receipt of Pricing based
Equipment Manufacturing Co. processing for the 1834862 1834862 0.00 Cash 1834862 /
parent company services on market price
Ltd Company
Shanghai China
Consigned
Communications Water Holding subsidiary of Receipt of Pricing based
processing for the 1748853 1748853 0.00 Cash 1748853 /
Transportation Design & parent company services on market price
Company
Research Co. Ltd.Consigned
CCCC First Harbor Consultants Holding subsidiary of Receipt of Pricing based
processing for the 1293585 1293585 0.00 Cash 1293585 /
Co. Ltd. parent company services on market price
Company
Consigned
CCCC Xingyu Technology Co. Holding subsidiary of Receipt of Pricing based
processing for the 1291516 1291516 0.00 Cash 1291516 /
Ltd parent company services on market price
Company
Consigned
Shanghai Waterway Logistics Holding subsidiary of Receipt of Pricing based
processing for the 1009174 1009174 0.00 Cash 1009174 /
Co. Ltd parent company services on market price
Company
Installation Engineering Co. Consigned
Holding subsidiary of Receipt of Pricing based
Ltd. of CCCC First Harbor processing for the 908257 908257 0.00 Cash 908257 /
parent company services on market price
Engineering Co. Ltd. Company
Consigned
CCCC Highway Consultants Holding subsidiary of Receipt of Pricing based
processing for the 258180 258180 0.00 Cash 258180 /
Co. Ltd. parent company services on market price
Company
CCCC Marine Engineering & Consigned
Holding subsidiary of Receipt of Pricing based
Technology Research Center processing for the 207203 207203 0.00 Cash 207203 /
parent company services on market price
Co. Ltd. Company
CCCC WuHan Harbour Consigned
Holding subsidiary of Receipt of Pricing based
Engineering Design and processing for the 68807 68807 0.00 Cash 68807 /
parent company services on market price
Research Co. Ltd. Company
CCCC Shanghai Harbor Consigned
Holding subsidiary of Receipt of Pricing based
Engineering Design & Research processing for the 55046 55046 0.00 Cash 55046 /
parent company services on market price
Institute Co. Ltd. Company
CCCC Shanghai Equipment Holding subsidiary of Purchase of Providing materials Pricing based
645334160 645334160 0.73 Cash 645334160 /
Engineering Co. Ltd. parent company goods for the Company on market price
ZPMC Changzhou Coatings Purchase of Providing materials Pricing based
Associated company 83224897 83224897 0.09 Cash 83224897 /
Co. Ltd goods for the Company on market price
CCCC Tianjin Industry and Holding subsidiary of Purchase of Providing materials Pricing based
66687672 66687672 0.08 Cash 66687672 /
Trade Co. Ltd. parent company goods for the Company on market price242020
Reason
Proportion for great
Type of Pricing Content of related principle Price of
in the Settlement differences
Related party Relationship related related Amount of related amount mode of between
transaction transaction of related transaction transaction of similar associated
Market price the bargain
transaction transactions transaction price and
(%) market
price
Installation Engineering Co.Holding subsidiary of Purchase of Providing materials Pricing based
Ltd. of CCCC First Harbor 61964860 61964860 0.07 Cash 61964860 /
parent company goods for the Company on market price
Engineering Co. Ltd.Shanghai Jiangtian Industrial Holding subsidiary of Purchase of Providing materials Pricing based
10044735 10044735 0.01 Cash 10044735 /
Co. Ltd. parent company goods for the Company on market price
Chongqing Yongjiang
Expressway Investment and Holding subsidiary of Purchase of Providing materials Pricing based
9557213 9557213 0.01 Cash 9557213 /
Construction Co. Ltd of FHEC parent company goods for the Company on market price
of CCCC
CCCC Shanghai Channel Holding subsidiary of Purchase of Providing materials Pricing based
3466483 3466483 0.00 Cash 3466483 /
Equipment Industry Co. Ltd. parent company goods for the Company on market price
China Communications Holding subsidiary of Purchase of Providing materials Pricing based
2254606 2254606 0.00 Cash 2254606 /
Construction Company Ltd. parent company goods for the Company on market price
CCCC National Engineering
Holding subsidiary of Purchase of Providing materials Pricing based
Research Center of Dredging 2151725 2151725 0.00 Cash 2151725 /
parent company goods for the Company on market price
Technology and Equipment Co. Ltd.CNPC & CCCC Petroleum Holding subsidiary of Purchase of Providing materials Pricing based
2047752 2047752 0.00 Cash 2047752 /
Sales Co. Ltd. parent company goods for the Company on market price
CCCC (Xiamen) Information Holding subsidiary of Purchase of Providing materials Pricing based
20971 20971 0.00 Cash 20971 /
Co. Ltd parent company goods for the Company on market price
Total / / 5972066878 / / /
Details of large amount of sales returns
The Proposal on Estimating Routine Related Transactions for Years 2019-2021 was approved upon deliberation at the first
provisional general meeting in 2019 of the Company. In 2020 the amount of the annual related transactions in the normal
Explanation for related
business between the Company and its subsidiaries and China Communications Construction Co. Ltd. and its subsidiaries
transactions
did not exceed RMB 10 billion. The Annual General Meeting had authorized the Company’s management to handle the
relevant specific matters.2 Related transactions arising from acquisition or offering of assets or stock equity
1. Events disclosed in provisional announcement without progress or changes in follow-up implementation
□Applicable √Not applicable
2. Events disclosed in the provisional announcement with progress or changes in follow-up implementation
□Applicable √Not applicable
3. Events not disclosed in provisional announcements
□Applicable √Not applicable
4. Where agreed performance is involved the performance achievement during the reporting period should be
disclosed
□Applicable √Not applicable
3 Material related transactions with joint external investments
1. Events disclosed in provisional announcement without progress or changes in follow-up implementation
√Applicable □Not applicable
Summary of events Query index
On August 28 the 16th meeting of the 7th board of directors deliberated and Website of Shanghai Stock Exchange: www.sse.com.cn and
passed the Proposal on Capital Increase and Related Party Transactions of Shanghai Securities News and Hong Kong Wen Wei Po on
CCCC Yancheng Construction Development Co. Ltd. August 29 2020
On August 28 the 16th meeting of the 7th board of directors deliberated and Website of Shanghai Stock Exchange: www.sse.com.cn and
passed the Proposal on Giving up the Priority of Capital Increase Right of Shanghai Securities News and Hong Kong Wen Wei Po on
Subsidiaries and Related Party Transactions August 29 202025
2. Events disclosed in the provisional announcement with progress or changes in follow-up implementation
□Applicable √Not applicable
3. Events not disclosed in provisional announcements
□Applicable √Not applicable
4 Current associated rights of credit and liabilities
1. Events disclosed in provisional announcement without progress or changes in follow-up implementation
□Applicable √Not applicable
2. Events disclosed in the provisional announcement with progress or changes in follow-up implementation
□Applicable √Not applicable
3. Events not disclosed in provisional announcements
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
XV. Material contracts and their performance
1 Trusteeship contracting and leasing matters
1. Trusteeship
□Applicable √Not applicable
2. Contracting
□Applicable √Not applicable
3. Leasing
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Basis for Impacts of
Amount Starting Termination Related
Name of Leased Income from determining income from
Name of lessee involved in date of date of transaction Relationship
lessor assets leasing income from leasing on the
leased assets leasing leasing or not
leasing Company
Shanghai Zhenlong
The Asset Management Lease of August 10
240593148.00 July 9 2025 47718300.00 Agreed 47718300.00 No Other
Company Co. Ltd and other houses 2012
companies
Leasing explanation
None
2 Guarantee
√Applicable □Not applicable
Unit: Yuan Currency: CNY
External guarantee of the Company (excluding guarantee to the subsidiaries)
Relation between Date of guarantee Starting Due Fulfillment Amount of Counter Guarantee
Guarantor the guarantor Guaranteed Guaranteed Type of of the Overdue by the and the listed party amount (signing date of date of date of guarantee guarantee or not overdue guarantee Relationship
company agreement) guarantee guarantee guarantee or not
related party
or not or not
Total amount of guarantee incurred during the reporting period (excluding guarantee to the
subsidiaries)
Total balance of guarantee at the end of the reporting period (A) (excluding guarantee to the
subsidiaries)
Guarantee of the Company and its subsidiaries to the subsidiaries
Total amount of guarantee to the subsidiaries incurred during the reporting period -241324194
Total balance of guarantee to the subsidiaries at the end of the reporting period (B) 1810341787
Total amount of guarantee of the Company (including guarantee to the subsidiaries)
Total amount of guarantee (A+B) 1810341787
Proportion of total amount of guarantee in the net assets of the Company (%) 10.60262020
Including:
Amount of guarantee to the shareholders the actual controller and related parties (C)
Amount of debt guarantee directly or indirectly provided to the guaranteed party with the asset-
liability ratio over 70% (D) 1446253214
Amount of guarantee exceeding 50% of net assets (E)
Total guarantee amount of the above three items (C+D+E) 1446253214
Explanation for the joint and several repayment liabilities for the undue guarantee
The Proposal for Providing Financing Guarantee to the Subsidiary Shanghai Zhenhua Port Machinery
(Hong Kong) Co. Ltd. Was approved upon deliberation by the Company at the 1st provisional general
meeting for 2008 held in September 22 2008 which agreed to provide the financial support to the
Description of guarantee subsidiary in Hong Kong and provided the guarantee with the upper limit of USD 500 million for the
loan it applied for through the bank. Guarantees provided by the Company to subsidiaries during the
reporting period refer to the guarantees to subsidiaries in Hong Kong. Other guarantee matters were
approved upon deliberation at the 30th meeting of the 5th Board of Directors.3 Consigned cash assets management
1. Consigned financing
(1) General information of consigned financing
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Information on individual consigned financing
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Provision for impairment of consigned financing
□Applicable √Not applicable
2. Consigned loans
(1) General information of consigned loans
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Individual consigned loans
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Provision for impairment of consigned loans
□Applicable √Not applicable
3. Other information
□Applicable √Not applicable
4 Other material contracts
□Applicable √Not applicable
XVI. Particulars about other important events
□Applicable √Not applicable
XVII. Particulars about actively performing social responsibilities
1 Poverty alleviation of the listed company
√Applicable □Not applicable
1. Targeted poverty alleviation program
√Applicable □Not applicableAccording to the requirements of the “Decision of the Central Committee of the Communist Party of China and theState Council on Winning the Battle Against Poverty” in order to implement the enterprise social responsibility the Company
established a leading group for poverty alleviation and development and actively carried out the targeted poverty alleviation
and completed the task of partner assistance in Tue Township Lanping County Nujiang Prefecture Yunnan Province.2. Summary of annual targeted poverty alleviation
√Applicable □Not applicable27
In 2020 taking the principle of “Poverty Alleviation after Education” as the main working concept the Company
centralized the resource to donate a number of indoor and outdoor facilities for Tue Town Kindergarten including desks and
chairs siesta bed all-in-one teaching machine water dispenser and suspended floor by which the local education resource
lack was improved. In the early stage of the outbreak of COVID-19 the Company donated a batch of materials to Lanping
County where Tue Town is located to help them fight against COVID-19. It ordered a batch of work clothes from the clothing
companies in Yingjisha County Xinjiang to create employment and increase income for the filed and registered households
and actively cooperated with the designated poverty alleviation villages and towns to carry out the training on appropriate
traditional Chinese medicine technology for rural doctors and the training on industrialization development of plateau
characteristic agricultural products. In addition the Company carried out the poverty alleviation through consumption and
employment there and participated in the free construction project of Nujiang Dukou Bridge helping the local infrastructure
construction. The Company won the title of “Targeted Poverty Alleviation Star Enterprise granted” by Lanpei County
Committee of the CPC and Lanping County People’s government in 2020.3. Effectiveness of targeted poverty alleviation
√Applicable □Not applicable
Unit: 10000Yuan Currency: CNY
Indicators Amount and progress
I. General condition
Including: 1. Funds 178.08
II. Itemized investment
1. Transfer employment for poverty alleviation
Including: 1.1 Investment in vocational skills training 2.85
1.2 Number of trainees for vocational skills training (person/time) 28
1.3 Number of employed people from filed and registered poor
households (person) 5
2. Poverty alleviation through education
2.1 Investment in improving the education resources in poor areas 41.74
3. Poverty alleviation through health improvement
Including: 3.1 investment in medical and health resources in poor areas 2.51
4. Other items
Overall poverty alleviation funds of CCCG: RMB 600000;
cost of customized work clothes from Yingjisha County
Xinjiang: RMB 381200; poverty alleviation funds from
4.1 Description of other items external units: RMB 50000; purchase of agricultural
products from poor areas: RMB 206200; joint investment
in poverty alleviation through consumption with external
units: RMB 72400
III. Awards (content and level)
Targeted Poverty Alleviation Star Enterprise (county-level)
4. Subsequent targeted poverty alleviation program
√Applicable □Not applicableIn combination with the poverty alleviation requirements of “Continuing to take responsibilities to implement policiesto provide support and to supervise after overcoming poverty” the Company will continue to improve its political position
enhance the social responsibility as a central enterprise strengthen the support and publicity and help Tue Township in
Lanping county to continue to do a good job in compulsory education and labor transfer in the “post poverty alleviation” era
so as to improve its hematopoietic capacity and create a development outlook with high level of labor force and good quality
of the whole people.Based on the investigations of poverty alleviation the Company plans to carry out the poverty alleviation work in 2021 in
the following aspects:
I. Poverty alleviation through Party Building. The Party branch of ZPMC will carry out partner assistance with Yongchang
Community Party branch of Lanping County and Tue Township Party branch.II. Poverty alleviation through education. By using big data and other methods it will establish a student growthdatabase for Tue Center Primary School and Zhenhua Kindergarten to record the growth status and will develop new “postpoverty alleviation” measures with modern means. At the same time the Company will strengthen the one-to-one support
propaganda in ZPMC and will continue to do well in poverty alleviation education.282020
III. Poverty alleviation through employment. The Company will provide industrial worker jobs for the surplus labor force
in Tue Township and provide relevant training and teaching so as to help them grow rapidly and to provide assistance for the
Company’s production base and domestic and foreign port and terminal production operations.2 Fulfillment of social responsibility
√Applicable □Not applicable
The Company actively performed the social responsibility enhanced the responsibility management to create the
benefit for shareholders upgraded the operation quality to create the high quality products for users responded to the
“Belt and Road” initiative and “Made in China 2025 Strategy” with the actual action implemented the development strategy
with equipment manufacturing as the center and capital operation and Internet+ as two wings. In addition to the traditional
dominant plates such as port machinery ocean engineering system EPC and ocean transportation of heavy cargoes the
Company also developed the intelligent industry livelihood consumption integrated development and digital industry to
make contribution to the development of entity economy and the construction of the well-off society.Adhering to the concept of "open development and all-win harmony" the Company speeded up the pace of "going
global" actively promoted the layout of overseas regional centers and built Terminexus digital intelligent platform to provide
faster and more efficient services to global users. Every year the Company may hold the forum on intelligent solutions of
wharf to discuss the development plan with the global professionals. The Company made full use of the platform of China
International Import Expo to achieve mutual benefit and common development with global enterprises.The Company paid more attention to the green and sustainable development actively invested in the research and
development of green products promoted the "change from oil into electricity" technology of dock equipment and optimized
the environmental protection properties of existing equipment; built intelligent terminals to achieve "zero emission" from
terminals and provided equipment support for the development of clean energy such as solar and wind power. The Company
further increased the investment in environmental protection improved the existing production equipment and facilities
and innovate the green production process; strengthened the long-term mechanism for green environmental protection
management created the environmental protection culture with vitality set up the special training for environmental
protection enhance the environmental protection awareness of the staff and laid a green foundation for promoting the high-
quality development of the Company.The Company always adhered to the principle of "people-oriented" strengthened the humanistic care for employees
built a career development platform for employees; strengthened the communication with the community where the
Company is located through activities such as party building and association building; released the Social Responsibility
Report regularly to show the development trend of the enterprise; carried out the targeted poverty alleviation promoted the
poverty alleviation month by month and implemented fixed-point poverty alleviation tasks.3 Environmental Information
1. Information about environmental protection of the Company and its subsidiaries as the key pollutant
discharge units published by environmental protection department
√Applicable □Not applicable
(1) Emission information
√Applicable □Not applicable
During the reporting period under the guidance of Xi Jinping's ecological civilization thought the Company
conscientiously implemented the significant national and local decisions and arrangements on eco-environmental protection
and actively promoted the environmental compliance regulation action and took environmental pollution control as the key
work in the year-round. The Company implemented the subject responsibility and leadership responsibility at all levels
took the initiative to improve the position and awareness of ecological environmental protection adhered to the general
requirements of “full coverage zero tolerance strict law enforcement and practical effect” studied and solved the outstanding
problems that restricted the environmental protection work of the Company in accordance with the national laws regulations
and industry standards and promoted the environmental rectification and improved the environmental management level.During the reporting period the total permitted amount of main pollutants in waste gas of the Company and its major
subsidiaries: 1.13 tons of sulfur dioxide 2.41 tons of nitrogen oxide 71.10 tons of particulate matter (total amount control
implemented in some subsidiaries) and 309.27 tons of VOCs; annual actual emissions: 1.09 tons of sulfur dioxide 2.10
tons of nitrogen oxide 69.32 tons of particulate matter (actual emissions of the subsidiaries implementing total amount
control: 23.89 tons) and 254.92 tons of VOCs; total permitted amount of main pollutants in wastewater: 480.33 tons of COD
and 35.51 tons of ammonia nitrogen; annual actual emissions: 178.80 tons of COD and 10.32 tons of ammonia nitrogen.All indicators were in line with the total emission control indicators of the emission permit. According to the supervision
monitoring by environmental protection department and the self-monitoring of the enterprise all kinds of pollutantsdischarged by the Company meet the corresponding emission limits specified in the national “Integrated Emission Standardof Air Pollutants” (GB 16297-1996) “Integrated Wastewater Discharge Standard” (GB8978-1996) “Emission Standardsof Pollutants for Shipbuilding Industry” (DB31/934-2015) “Emission Standards for Odor Pollutants” (GB14554-1993)“Integrated Emission Standard of Air Pollutants” (DB31/933-2015) “Emission Standards for Odor Pollutants” (DB31/1025-
2016) “Integrated Emission Standard of Air Pollutants” (GB 16297-1996) “Emission Standard of Air Pollutants for Boiler”29
(DB31/387-2018) and the “Integrated Emission Standard of Air Pollutants” (DB31/933-2015) of Shanghai City “EmissionStandard of Air Pollutants for Industrial Kiln and Furnace” (DB31/860-2014) “Integrated Wastewater Discharge Standard”
(DB31/199-2018) and “Emission Standard for Industrial Enterprises Noise at Boundary” (GB12348-2008).
For details of the pollutant emissions of the Company and major subsidiaries see the table below:
Name of the Name of main pollutant and Emission Number
Over-
company or of Distribution Emission
Total Permitted
characteristic mode of outlets concentration Applicable pollutant emission standards emissions emissions
standard
subsidiary outlets in 2020 in 2020 emissions pollutant in 2020
SO2 Emission Standards of Pollutants for Shipbuilding 1.09 1.13 None
Industry (DB31/934-2015) Integrated Emission
NOx Pretreatment Standard of Air Pollutants (DB31/933-2015) of 2.1 2.41 None
62 sand washing Shanghai City Emission Standards for Odor Shanghai
and coating Meeting Pollutants (DB31/1025-2016) Emission Standard Zhenhua Heavy Particulate matter Organized relevant of Air Pollutants for Boiler (DB31/387-2018) and 12.86 18.74 NoneIndustries Co. Ltd. emission standards Emission Standard of Air Pollutants for Industrial Kiln Changxing Branch VOCs and Furnace (DB31/860-2014) 142.95 146.5475 None
COD
2 Wastewater Integrated Wastewater Discharge Standard
22.17 189.4 None
Ammonia nitrogen outlet (DB31/199-2018) 0.22 14.25 None
Shanghai Zhenhua Integrated Emission Standard of Air Pollutants Particulate matter
Port Machinery Organized Pretreatment Meeting (DB31/933-2015) Emission Standards for Odor
3.51 21.133 None
Heavy Industries emission 10 sand washing relevant Pollutants (DB31/1025-2016) and Emission Standard
Co. Ltd. VOCs and coating standards of Air Pollutants for Industrial Kiln and Furnace (DB31/860-2014) of Shanghai City 43.68 60.02 None
Shanghai Zhenhua Particulate matter 6.686 30.14 None
Heavy Industries Port Organized Pretreatment Meeting 9 sand washing relevant Integrated Wastewater Discharge Standard Machinery General emission and coating standards (DB31/199-2018)Equipment Co. Ltd. VOCs 30.5144 45.56 None
Particulate matter Sand
17 washing and Integrated Emission Standard of Air Pollutants (GB
4.486 - None
Shanghai VOCs coating
16297-1996)
Meeting 30.1405 33.36 NoneZhenhua Heavy Organized
Industries Co. Ltd. relevant COD emission
Nantong Branch standardsWastewater Integrated Wastewater Discharge Standard (GB8978-
122.613 139.364 None
2 outlet 1996) Wastewater Quality Standards for Discharge to Ammonia Municipal Sewers (GB/T31962-2015)
nitrogen 2.841 11.23 None
Particulate matter Pretreatment 40.921 - None
18 sand washing Integrated Emission Standard of Air Pollutants (GB 16297-1996)
Nantong Zhenhua VOCs and coating Meeting 2.668 17.187 NoneHeavy Equipment Organized
Manufacturing emission relevant
Co. Ltd. COD standards 24.616 127.218 None
1 Wastewater
Integrated Wastewater Discharge Standard (GB8978-
outlet 1996) Wastewater Quality Standards for Discharge to Ammonia Municipal Sewers (GB/T31962-2015)
nitrogen 6.624 8.64 None
Particulate matter Pretreatment Integrated Emission Standard of Air Pollutants (GB 0.0209 - None
11 sand washing 16297-1996) Emission Standard of Air Pollutants for ZPMC
and coating Boiler (GB13271-2014) and Emission Standard of Air Transmission VOCs Organized Meeting Pollutants for Industrial Kiln and Furnace (GB9078-1996)
0.7361 - None
Machinery
(Nantong) Co. emission
relevant
COD standards Integrated Wastewater Discharge Standard (GB8978- 2.95 - NoneLtd. Wastewater
Ammonia 1 outlet 1996) Wastewater Quality Standards for Discharge to
nitrogen Municipal Sewers (GB/T31962-2015) 0.2467 - None
Reference standards: Integrated Emission Standard
Particulate matter
Pretreatment of Air Pollutants (DB31/933-2015) of Shanghai
0.835 1.09 None
10 sand washing City Emission Control Standard of Volatile Organic
ZPMC Qidong and coating Compounds for Industrial Enterprises (DB12/524-
Marine VOCs Organized Meeting 2014) of Tianjin City and Emission Standards for 4.227 6.6 None
Engineering Co. emission relevant Odor Pollutants (GB14554-1993)
Ltd. standardsCOD
Wastewater Integrated Wastewater Discharge Standard (GB8978-
6.451 24.35 None
1 outlet 1996) Wastewater Quality Standards for Discharge to Ammonia Municipal Sewers (GB/T31962-2015)
nitrogen 0.384 1.39 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
Based on the existing laws and regulations and the requirements of industrial policies the Company and its subsidiaries
have comprehensively carried out environmental compliance rectification activities strengthened the performance of duties
for ecological environmental protection guided employees to give full play to their subjective initiative and strengthened
supervision so as to ensure the compliance and control of the control objectives.According to the latest environmental protection requirements and the distribution of pollution sources the Company
and its subsidiaries strengthened the comprehensive treatment of waste gas and wastewater pollutants during the reporting
period. Changxing Base (including Shanghai Zhenhua Heavy Industries Co. Ltd. Changxing Branch Shanghai Zhenhua
Port Machinery Heavy Industries Co. Ltd. Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co.302020
Ltd.) has mainly implemented the rectification project of waste gas treatment facilities in painting workshop workshop and
outfield welding fume treatment rectification project non-road mobile machinery renovation project rainwater and sewage
diversion reconstruction project initial rainwater collection and treatment project ambient air automatic monitoring system
construction project the upgrading of environmental protection facilities for galvanizing workshop of Changxing Branch
painting shed construction project hazardous waste warehouse construction project and paint work construction project
etc. Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd has focused on the new paint workshop project and
installed three VOCs automatic monitoring systems. Shanghai Zhenhua Heavy Industries Co. Ltd Nantong Branch ZPMC
Transmission Machinery (Nantong) Co. Ltd and ZPMC Qidong Marine Engineering Co. Ltd have completed the installation
of 5 VOCs automatic monitoring systems and promoted the renovation of painting line.The Company has attached great importance to the operation and management of environmental protection facilities
established a complete management system formulated and improved the management system and all subsidiaries have
worked in strict accordance with ISO14001 environmental management system standards. At present the environmental
control facilities of the Company have fully covered the waste gas waste water noise and solid wastes and all kinds of
pollution control facilities are in normal operation.
(3) Environmental impact assessment (EIA) of construction project and other administrative licenses for environmental
protection
√Applicable □Not applicable
All the new reconstruction and expansion projects of the Company strictly implement the relevant management
regulations of “Three Simultaneities” for environmental protection of national and local construction projects and the projects
have gone through the procedures of environmental impact assessment and completion acceptance. See the table below for
details:
Name of the
company or Project name EIA approval
subsidiary / acceptance
Changxing Island Base construction project of Shanghai Zhenhua Port Machinery Co. Ltd
ZPMC Changxing Island Inland Expansion Project
New 0# Outer Terminal Project of Shanghai Zhenhua Heavy Industries Co. Ltd Changxing Production Base
3# Outer Terminal Project of ZPMC Changxing Base Acceptance
Shanghai completed
Zhenhua 5# Terminal Project of ZPMC Changxing Island Production Base
Heavy ZPMC Changxing Hot Dip Galvanizing Project
Industries 4# Terminal Reconstruction Project of Shanghai Zhenhua Heavy Industries Co. Ltd Changxing Base
Co. Ltd.Changxing Intelligent manufacturing workshop for crane box of automated terminal of Shanghai Zhenhua Heavy
Branch Industries Co. Ltd
New hazardous wastes warehouse project of Shanghai Zhenhua Heavy Industries Co. Ltd Changxing EIA approval
Branch has been
obtained
New paint shop project of Changxing Base
2# Gas Station Project of Shanghai Zhenhua Heavy Industries Co. Ltd Changxing Base
Changxing Island Base construction project of Shanghai Zhenhua Port Machinery Co. Ltd
Shanghai ZPMC Changxing Island Inland Expansion Project Acceptance
Zhenhua Port Added integrated workshop of Changxing Export Base Land Expansion Project Phase II completed
Machinery
Heavy Intelligent welding line construction project for super large lifting parts
Industries Co. Intelligent production transformation and upgrading of port machinery parts EIA approval
Ltd. Technical improvement project of painting automatic production line h a s b e e n
B4 painting workshop of Axle Business Department obtained
Changxing Island manufacturing base project of Shanghai Port Machinery Manufacturing Plant
Shanghai
Zhenhua Adjustment of the Changxing Island manufacturing base project of CCCC Shanghai Port Machinery
Heavy Manufacturing Plant
Acceptance
completed
Industries Port Changxing Island manufacturing base project (extra-heavy shipping terminal and approach bridge) of
Machinery Shanghai Port Machinery Manufacturing Plant
General
Equipment Paint warehouse reconstruction project of Shanghai Zhenhua Heavy Industries Port Machinery General EIA approval
Co. Ltd. Equipment Co. Ltd. has been obtained31
Name of the
company or Project name EIA approval
subsidiary / acceptance
Shanghai Port
Machinery New projects of Shanghai Port Machinery Equipment Manufacturing Co. Ltd
Heavy Acceptance
Industry Co. completedProduct adjustment project of Shanghai Port Machinery Equipment Manufacturing Co. Ltd
Ltd
Annual output of 75 rail cranes 8 bridge cranes or ship unloaders project
Annual output of 150 container yard bridges 20000t/a extra-heavy bridge steel structure and 10000t/a Acceptance
Shanghai offshore heavy machinery and equipment project completed
Zhenhua 40 mu living quarter project of Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd.Heavy
Industries Co. Construction
Ltd. Nantong in batches;
Branch Supporting project of new A-class warehouse and self-use diesel supply point of Nantong Zhenhua Heavy partial
Equipment Manufacturing Co. Ltd acceptance
has been
completed
Nantong new production base project of Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd.Nantong Sheet pile revetment terminal of Nantong New Production Base of Nantong Zhenhua Heavy Equipment
Zhenhua Manufacturing Co. Ltd.Acceptance
completed
Heavy Nantong Zhenhua 110kV factory substation project
Equipment Supporting living quarter project of Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd.Manufacturing
Co. Ltd. Expansion of 100000t/a sand washing paint steel components to 200000t/a and 2980t stainless steel and EIA approval
nonferrous metal pipe fittings project of Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. has been obtained
Gearbox factory project of Shanghai Zhenhua Port Machinery (Group) Co. Ltd (Nantong Zhenhua Heavy
ZPMC Equipment Manufacturing Co. Ltd.) Nantong Base Acceptance
Transmission New large parts processing workshop and 4 # dormitory project of ZPMC Transmission Machinery (Nantong) completed
Machinery Co. Ltd.(Nantong)
Co. Ltd. 5000t/a marine pile legs and environmental protection equipment upgrading project of ZPMC Transmission
EIA approval
Machinery (Nantong) Co. Ltd. has been obtained
ZPMC Qidong
Marine Production project of products under 100000 tons including product tanker chemical tanker bulk carrier Acceptance
Engineering and marine engineering products of ZPMC Qidong Marine Engineering Co. Ltd. completed
Co. Ltd.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 its
subsidiaries have successively applied for pollutant emission permits since 2015 and applied for the change of pollutant
emission permits according to regulations and have obtained the “Pollutant Emission Permit” issued by local ecological
and environmental protection department. In strict accordance with the requirements of emission permit the Company
continued to discharge pollutant as permitted carried out self-monitoring established accounts reported regularly and made
information public.
(4) Emergency proposal for environmental accident
√Applicable □Not applicable
In order to prevent the occurrence of sudden environmental pollution incidents and to control and deal with them quickly and
effectively after the occurrence in accordance with the “Environmental Protection Law of the People’s Republic of China” “Lawof the People’s Republic of China on the Prevention and Control of Water Pollution” “Law of the People's Republic of China onthe Prevention and Control of Atmospheric Pollution” “Law of the People's Republic of China on the Prevention and Control ofSolid Waste Pollution” “Measures for the Administration of Recording the Emergency Plan for Emergent Environmental Events ofEnterprises and Institutions (Trial Implementation)” “Guidelines for the Compilation of Risk Assessment Report on EnvironmentalEmergencies in Enterprises (Trial Implementation)” the Company assessed the existing environmental risks prepared the
emergency plans for subsidiaries and filed them with the local ecological and environmental protection department. During the
reporting period Shanghai Zhenhua Heavy Industries Co. Ltd. Changxing Branch Shanghai Zhenhua Port Machinery Heavy
Industries Co. Ltd and Shanghai Zhenhua Heavy Industries Co. Ltd. Nantong Branch started and completed the revision
evaluation and filing of the emergency plan for environmental emergencies.322020
(5) Self-monitoring scheme for environment
√Applicable □Not applicable
In accordance with the requirements of the emission permits and technical guidelines for self-monitoring of pollutant
discharge units all subsidiaries have carried out regular self-monitoring of environmental protection and released self-
monitoring information on provincial and municipal information disclosure platforms such as national pollution source
monitoring information management and sharing platform and Shanghai enterprise information disclosure platform.During the reporting period the Company has built five new boundary environmental monitoring stations in Changxing
base (including Shanghai Zhenhua Heavy Industries Co. Ltd. Changxing Branch Shanghai Zhenhua Port Machinery Heavy
Industries Co. Ltd. Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co. Ltd.) which have been
equipped with advanced environmental monitoring equipment to improve the accuracy of monitoring; the Company has
changed the monitoring management mode taken monitoring over standard analysis rectification tracking and supervision
as the important functions of environmental monitoring and realized the closed-loop management of over standard
problems. In the meanwhile it conscientiously carried out self-monitoring and released self-monitoring data and related
information in a timely complete and truthful manner according to national and local requirements. The self-monitoring
announcement rate in the reporting period reached 100%.
(6) Other environmental information to be disclosed
□Applicable √Not applicable
2. Particulars about the environmental protection of the companies other than those defined as key pollutant-
discharge entities
√Applicable □Not applicable
The main pollutants of the subsidiaries other than the key emission entities such as Shanghai Port Machinery Heavy
Industry Co. Ltd subordinate to the Company: wastewater (COD ammonia nitrogen) waste gas (particulate matter VOCs)
solid waste noise etc. Discharge mode: the wastewater was discharged up to the standard after treatment and some units
have set up sewage treatment facilities; the atmospheric pollutants such as the particulate matter and VOCs in waste gas
were discharged in the manner of organized discharge; it is required to renovate spraying exhaust gas treatment facilities
and provide workshop dust removal devices etc.; the solid wastes and the hazardous wastes were handed over to the
qualified entities for treatment; plant boundary noise was discharged up to the standard.3. Description of the reasons for failing to disclose the environmental information by the companies other than
the key pollutant discharge entities
□Applicable √Not applicable
4. Description of the follow-up progress and changes in the contents of environmental information disclosed
during the reporting period
□Applicable √Not applicable
(IV) Other description
√Applicable □Not applicable
In August 2020 All-China Environment Federation sued the Company and Shanghai Zhenhua Heavy Industries Co.Ltd. Changxing Branch to Shanghai No. 3 Intermediate People’s Court for air pollution liability dispute with the case No.
(2020) H 03 MC 274. Changxing Branch and the Company attached great importance to this event and established a special
working group to actively communicate with the Federation. So far the Court has not arranged any trial procedures.XVIII. Information about convertible corporate bonds
□Applicable √Not applicable33
Section VI Changes in Ordinary Shares and Shareholders' Situation
I. Changes in ordinary shares capital
1 Table of changes in ordinary shares
1. Table of changes in ordinary shares
The total number of shares of the Company's ordinary shares and the structure of its share capital remained unchanged
during the reporting period.2. Notes to changes in ordinary shares
□Applicable √Not applicable
3. Effect of changes in ordinary shares on financial indicators such as earnings per share and net asset per
share for the latest year and period (if any)
□Applicable √Not applicable
4. Other contents that the Company deems necessary to be disclosed or required to be disclosed by the
securities regulatory authority
□Applicable √Not applicable
2 Changes in shares with restrictive conditions for sales
□Applicable √Not applicable
II. Issuance and listing of securities
1 Securities issuance by the reporting period
□Applicable √Not applicable
Particulars about the issuance of securities during the reporting period (for bonds of different interest rates within the
duration please state them respectively)
□Applicable √Not applicable
2 Changes in total ordinary shares of the Company and the shareholder structure as well as the assets and liabilities
□Applicable √Not applicable
3 Existing internal employee ownership
□Applicable √Not applicable
III. Shareholders and actual controller
1 Total number of shareholders
Total of ordinary shareholders by the end of the reporting period 228621
Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report 232566342020
2 Table of the shares held by top 10 shareholders top 10 holders of marketable shares (or shareholders without
trading limited conditions) by the end of reporting period
Unit: share
Shares held by top 10 shareholders
Number of Number of Pledge or freezing Changes in condition
Name of shareholder(in full) the reporting shares held at shares with Nature of
period the end of the
Ratio (%) trading limited Share Number shareholder
period conditions held status of shares
CCCG (HK) Holding Limited 0 916755840 17.401 0 NA 0 Overseas legal person
China Communications Construction
Company Ltd. 0 855542044 16.239 0 NA 0
State-owned
legal person
China Communications Construction Group 0 663223375 12.589 0 NA 0 State-owned Co. Ltd. legal person
Central Huijin Asset Management Co. Ltd. 0 89378640 1.70 Unknown Unknown
Bosera Fund - Agricultural Bank of China -
Bosera China Securities Financial Assets 0 19855920 0.38 Unknown Unknown
Management Plan
E FUND Management- Agricultural Bank
of China - E FUND Management China 0 19855920 0.38 Unknown Unknown
Securities Financial Assets Management Plan
Dacheng Fund- Agricultural Bank of China
- Dacheng China Securities Financial Asset 0 19855920 0.38 Unknown Unknown
Management Plan
Harvest Fund - Agricultural Bank of China -
Harvest CSI Asset Management Plan 0 19855920 0.38 Unknown Unknown
GF Fund- Agricultural Bank of China - GF China
Securities Financial Assets Management Plan 0 19855920 0.38 Unknown Unknown
Lombarda China Fund- Agricultural Bank
of China - Lombarda China Fund China 0 19855920 0.38 Unknown Unknown
Securities Financial Assets Management Plan
China Asset Management- Agricultural Bank
of China - China Asset Management China 0 19855920 0.38 Unknown Unknown
Securities Financial Assets Management Plan
Yinhua Fund- Agricultural Bank of China
- Yinhua China Securities Financial Asset 0 19855920 0.38 Unknown Unknown
Management Plan
China Southern Asset Management-
Agricultural Bank of China - China Southern
Asset Management China Securities Financial 0 19855920 0.38 Unknown Unknown
Asset Management Plan
ICBC Credit Suisse Fund- Agricultural Bank of
China - ICBC Credit Suisse China Securities 0 19855920 0.38 Unknown Unknown
Financial Asset Management Plan
Shareholdings of top 10 shareholders without trading limited conditions
Number of non- Type and number of shares
Name of shareholder restrictive circulation
shares held Category Quantity
Foreign
CCCG (HK) Holding Limited 916755840 shares listed
domestically
China Communications Construction Company Ltd. 855542044 RMB ordinary shares35
Shareholdings of top 10 shareholders without trading limited conditions
Number of non- Type and number of shares
Name of shareholder restrictive circulation
shares held Category Quantity
China Communications Construction Group Co. Ltd. 663223375 RMB ordinary shares
Central Huijin Asset Management Co. Ltd. 89378640 RMB ordinary shares
Bosera Fund - Agricultural Bank of China - Bosera China Securities
Financial Assets Management Plan 19855920
RMB ordinary
shares
E FUND Management- Agricultural Bank of China - E FUND Management RMB ordinary
China Securities Financial Assets Management Plan 19855920 shares
Dacheng Fund- Agricultural Bank of China - Dacheng China Securities
Financial Asset Management Plan 19855920
RMB ordinary
shares
Harvest Fund - Agricultural Bank of China - Harvest CSI Asset 19855920 RMB ordinary Management Plan shares
GF Fund- Agricultural Bank of China - GF China Securities Financial RMB ordinary
Assets Management Plan 19855920 shares
Lombarda China Fund- Agricultural Bank of China - Lombarda China RMB ordinary
Fund China Securities Financial Assets Management Plan 19855920 shares
China Asset Management- Agricultural Bank of China - China Asset RMB ordinary
Management China Securities Financial Assets Management Plan 19855920 shares
Yinhua Fund- Agricultural Bank of China - Yinhua China Securities RMB ordinary
Financial Asset Management Plan 19855920 shares
China Southern Asset Management- Agricultural Bank of China -
China Southern Asset Management China Securities Financial Asset 19855920 RMB ordinary
Management Plan shares
ICBC Credit Suisse Fund- Agricultural Bank of China - ICBC Credit Suisse RMB ordinary
China Securities Financial Assets Management Plan 19855920 shares
Among the above top 10 shareholders CCCG (HK) Holding
Limited China Communications Construction Group Co.Ltd. and China Communications Construction Company
Notes to the related relation or consistent actions of the above-mentioned Ltd. are related companies. It was unknown to the
shareholders Company whether there was related relation or concerted
actor specified in the Management Method on Information
Disclosure for Shareholding Change of the Shareholders of
Listed Companies.Explanation on preferred stock holders with recovered voting rights and
number of stocks held by them
Shareholding quantity of top ten shareholders with sales restriction and the sales restriction
□Applicable √Not applicable
3 Strategic investors or legal persons becoming the top 10 shareholders due to placement of new shares
□Applicable √Not applicable362020
IV. Controlling shareholders and actual controllers
1 Controlling shareholder
1. Legal person
√Applicable □Not applicable
Name China Communications Construction Group Co. Ltd.Company principal or legal representative Wang Tongzhou
Date of Establishment December 8 2005
Construction of overseas projects and international bidding projects at home; general
contracting for construction of various special ships leasing and maintenance of special
ship and construction machines; offshore towage and professional services related to the
ocean engineering; technical consultant services regarding the ship and the supporting port
equipment; engaging in the general contracting of construction projects for ports channels
Main business highways and bridges both home and abroad (including technical and economic consultation of engineering feasibility study survey design construction supervision procurement
and supply for related complete set of equipment or materials and equipment installation);
undertaking the general contracting of the construction of industrial and civil works railway
metallurgy petrochemical tunnel power mine water conservancy and municipal works;
import and export business; real estate development and property management; investment
and management of transportation hotel and tourism industries.CCCG holds 57.99% of the stock equity of CCCC (601800.SH) and it is the controlling
shareholder. CCCG holds 100% of the stock equity of CCCG Real Estate Group Co. Ltd.;
CCCG Real Estate Group Co. Ltd holds 100% of the stock equity of Zhongzhu Real Estate
Equities of other domestic and overseas Development Co. Ltd. Zhongzhu Real Estate Development Co. Ltd holds 53.32% of the
public companies during the reporting stock equity of CCCG Real Estate Co. Ltd (name used before: Chongqing Industries
period Zhongfang Real Estate) (000726.SZ) and it is the controlling shareholder. CCCG and its controlling subsidiaries totally hold 28.91% of the stock equity of Greentown Holding Co. Ltd
(03900.HK) and are the controlling shareholders. CCCG and its subsidiaries hold 29.99% of
the stock equity of Shanghai Zhenhua Heavy Industries Co. Ltd (600320.SH) and it is the
controlling shareholder.Notes to other circumstances
2. Natural persons
□Applicable √Not applicable
3. Particulars about no controlling shareholder in the Company
□Applicable √Not applicable
4. Index and date of change in the controlling shareholder during the reporting period
□Applicable √Not applicable
5. Chart for the property and controlling relationships between the Company and the controlling shareholders
√Applicable □Not applicable
CCCG
Shareholding ratio100% Shareholding ratio 57.99%
CCCG HK CCCC
Shareholding ratio 17.4012% Shareholding ratio 12.5888% Shareholding ratio 16.2393%
Shanghai Zhenhua Heavy Industries Co. Ltd.37
2 Actual controller
1. Legal person
□Applicable √Not applicable
2. Natural person
□Applicable √Not applicable
3. Particulars about no actual controller in the Company
□Applicable √Not applicable
4. Index and date of change in the actual controller during the reporting period
□Applicable √Not applicable
5. Block diagram of ownership and control relation between the Company and the actual controller
√Applicable □Not applicable
State-owned Assets Supervision and
Administration Commission of the State Council
Shareholding ratio 90%
CCCG
Shareholding ratio 100% Shareholding ratio 57.99%
CCCG HK CCCC
Shareholding ratio 17.4012% Shareholding ratio 12.5888% Shareholding ratio 16.2393%
Shanghai Zhenhua Heavy Industries Co. Ltd.6. Control over the Company by the actual controller via trust or other ways of assets management
□Applicable √Not applicable
3 Other information about Controlling shareholders and actual controllers
□Applicable √Not applicable
V. Other legal person shareholder holding more than 10%
□Applicable √Not applicable
VI. Particulars about restriction on reduction in shares held
□Applicable √Not applicable
Section VII Preferred Shares
□Applicable √Not applicable382020
Section VIII Directors Supervisors Senior Executives and Employees
I. Shareholding variation and remuneration
1 Changes in shares held by current and resigned directors supervisors and senior executives during the
reporting period and their remunerations
√Applicable □Not applicable
Unit: share
Number Number Change Total remuneration Remuneration
Starting Expiry of shares of shares in Reason before tax from from the
Name Post (Note) Sex Age date of date of held held at shares of the Company related
tenure tenure at the the end in the change during the party of the beginning of the year reporting period Company or of year year (RMB’0000) not
General
manager Mar. 3 June 25
Liu (president)
2021 2021
Chengyun Male 52 0 0 0 0 YesDirector
chairman of Mar. 19 June 25
the board 2021 2021
Liu Qizhong Director vice Male 57 June 26 June 25 president 2018 2021 0 0 0 66.69 No
Zhu
Xiaohuai Director CFO Male 52
June 26 June 25
2018 2021 0 0 0 69.09 No
Sheng Independent May 28 June 25
Leiming director Male 51 2019 2021 0 0 0 12 No
Zhang Hua Independent May 28 June 25 director Male 48 2019 2021 0 0 0 12 No
Yang Jun Independent Male 64 June 26 June 25 director 2018 2021 0 0 0 12 No
Zhao Independent June 26 June 25
Zhanbo director Male 45 2018 2021 0 0 0 12 No
Ji Linhong Independent June 26 June 25 director Male 59 2018 2021 0 0 0 12 No
Bai Yunxia Independent director Female 48
June 26 June 25
2018 2021 0 0 0 12 No
Supervisor
Wang Cheng chairman of Male 48 June 26 June 25 the board of 2018 2021 0 0 0 69.09 No
supervisors
Xiang
Xudong Supervisor Male 45
June 26 June 25
2018 2021 0 0 0 75.17 No
You Hua Supervisor Male 58 June 29 June 25 2020 2021 0 0 0 0 Yes
Liu Jianbo Vice president Male 58 Aug. 22 June 25 2018 2021 0 0 0 69.09 No
Zhou Qi Vice president Male 49 Aug. 22 June 25 2018 2021 0 0 0 67.48 No
Chen Bin Vice president Male 47 Aug. 22 June 25 2018 2021 107328 107328 0 67.38 No
Shan
Jianguo Vice president Male 57
Aug. 22 June 25
2018 2021 0 0 0 67.89 No
Zhang Jian Vice president Male 52 Aug. 22 June 25 2018 2021 0 0 0 69.09 No
Fei Guo Chief engineer Male 59 Aug. 22 June 25 2018 2021 0 0 0 67.54 No
Li Ruixiang Chief Male 46 Aug. 22 June 25 economist 2018 2021 0 0 0 69.04 No39
Number Number Total remuneration Remuneration
Starting Expiry of shares of shares
Change before tax from from the
Name Post (Note) Sex Age date of date of held held at
in Reason
at the the end shares of
the Company related
tenure tenure beginning of the in the change
during the party of the
reporting period Company or
of year year year (RMB’0000) not
Chief legal
counsel
Sun Li secretary of the Male 49 Aug. 22 June 25 board chief 2018 2021 0 0 0 66.70 No
compliance
officer
Former director
Zhu Lianyu and chairman Male 51 June 26 Mar. 19 2018 2021 427200 427200 0 86.56 Noof the board
Huang Former director Male 46 June 26 Feb. 26 Qingfeng and president 2018 2021 0 0 0 85.84 No
Zhang Former director Male 61 June 26 Oct. 30 Hongwen 2018 2020 0 0 0 0 Yes
Former
Dai Wenkai director vice Male 54 June 26 Sept. 4
president 2018 2020
0 0 0 53.30 No
Zhang Former June 26 June 1
Minghai supervisor Male 59 2018 2020 24311 24311 0 83.61 No
Total / / / / / 558839 558839 0 / 1205.56 /
Name Main working experiences
Born in 1969 male master senior economist senior engineer. He began his career in August 1989 and has successively served as deputy
director of CCCC Fourth Harbor Engineering Co. Ltd vice general manager of CCCC Investment Co. Ltd secretary of the Party committee
chairman and general manager of CCCC Nansha Investment Development Co. Ltd. and CCCC Urban Investment Holding Co. Ltd
Liu general manager and secretary of CPC Working Committee of CCCC South China regional headquarters general manager of the Strategic
Chengyun Development Department of China Communications Construction Company Ltd. (CCCC) general manager of the Investment Division of CCCC
director of the board office and general manager of the Strategic Development Department of China Communications Construction Group Co.Ltd. (CCCG) and CCCC. Currently he is the assistant to the general manager of CCCG and chairman and general manager (president) of the
Company.Liu Born in 1964 male bachelor senior economist. He successively served as the manager of Operating Department and the vice president of the
Qizhong Company and serves as the director of the Company since March 2004. Currently he is the director and vice president of the Company.Born in 1969 male master of MBA senior accountant. He began his career in July 1991 and successively served as the section member and
Zhu vice section manager of Financial Division of CCCC Shanghai Dredging Co. Ltd vice director of Budget and Finance Department vice manager
Xiaohuai (in charge of the work) or manager of Finance Department and member of commission for disciplinary inspection of CCCC Shanghai Dredging Co. Ltd and the director chief accountant and Party committee standing member of CCCC Shanghai Dredging Co. Ltd. Currently he is the
director and CFO of the Company.Born in 1970 male doctor of laws senior lawyer. He successively served as a lawyer assistant and lawyer in Shanghai Foreign Trade Law
Sheng Firm a teacher of civil and commercial law in East China University of Political Science and Law a senior partner and chief lawyer of Shanghai
Leiming Zhongmao Law Firm and co-chairman senior partner and lawyer in the head office management committee of Guantao Law Firm. Currently he
is the independent director of the Company.Zhang Born in 1973 male Ph.D. Economics associate professor of finance. He successively served as a researcher lecturer assistant professor and
Hua associate professor at China Europe International Business School. Currently he is the independent director of the Company.Born in 1957 male master degree. He successively served as intermediate and senior court judge of Shanghai Court president and
member of the judicial committee member Property Trade Operation Director of Shanghai United Property Rights Exchange. Now he is the
assistant president of Shanghai United Property Rights Exchange general manager of Beijing HQ director of Financial Property Rights Trade
Yang Jun Center arbitrator of China International Economic and Trade Arbitration Commission Shanghai International Economic and Trade Arbitration
Commission arbitrator of Shanghai Arbitration Commission Shanghai Financial Arbitration Court expert of China domain name dispute
resolution center director of Intellectual Property Association of China Law Society director of Company Law Research Society of Shanghai Law
Society director of Shanghai Patent/Trademark/Copyright Association. Currently he is the independent director of the Company.Zhao Born in 1976 male Ph. D. He had served as a teacher in School of Software Peking University since 2005 and now he is a professor. He is
Zhanbo mainly engaged in the research in Internet business model innovation and corporate development strategy. Currently he is the independent director of the Company.Born in 1962 male Ph. D. He successively served as the assistant and the lecturer of Department of Precision Instrument of Tsinghua
University; assistant professor of Department of Precision Engineering of Faculty of Engineering of the University of Tokyo the Postdoctoral
Researcher in Ministry of Education Culture Sports Science and Technology of Japan. He had acted as vice director of Department of
Ji Linhong Precision Instrument of Tsinghua University vice director of Department of Mechanical Engineering of Tsinghua University director of Design Engineering Research Institute of Tsinghua University director of Experiment & Teaching Center of Mechanical Engineering and vice director
of State Key Lab of Tribology Tsinghua University and so on. Now he serves as a professor and a doctoral tutor in Department of Mechanical
Engineering Tsinghua University. He is mainly engaged in digitalized design and system optimization of complicated mechanical system and the
intelligent and biological mechanical design. Currently he is the independent director of the Company.402020
Name Main working experiences
Born in October 1973 female Ph. D from Xiamen University post-doctor in accounting of Guanghua School of Management Peking University
Bai professor of accounting doctoral tutor engaged in work in 1995. She successively served as the assistant engineer of Kaiyuan Group under
Yunxia Xi’an Jiaotong University lecturer of School of Economics and Management of Tongji University research scholar of CKGSB. Now she acts as the director of Department of Accounting School of Economics and Management Tongji University and the research scholar of Investment
Center of CKGSB. Currently she is the independent director of the Company.Born in 1973 male master of engineering senior political worker. He successively served as the vice secretary or secretary of league
committee and vice secretary or secretary of Party Branch of No. 2 Engineering Co. Ltd of CCCC Third Harbor Engineering Co. Ltd; vice
Wang director and director of Organization Department of CCCC Third Harbor Engineering Co. Ltd; secretary of the Party Committee and vice general
Cheng manager of No. 2 Engineering Co. Ltd of CCCC Third Harbor Engineering Co. Ltd; chairman of board of supervisors vice secretary of the Party Committee secretary of Committee for Discipline Inspection and chairman of labor union of CCCC Third Harbor Engineering Co. Ltd. Currently
he is the vice secretary of the Party Committee secretary of Commission for Disciplinary Inspection chairman of labor union and chairman of
board of supervisors of the Company.Born in 1976 male bachelor senior engineer. He successively served as the designer of No.2 Design Institute of Jiangnan Shipyard (Group)
Xiang Co. Ltd vice director and vice manager of the Quality Department of ZPMC and general manager of ZPMC Inspection Co. Ltd. Currently he
Xudong is the staff representative supervisor of the board of supervisors vice general manager of ZPMC Port Machinery Group and the secretary of the
Party committee and executive vice general manager of Changxing Branch.Born in 1963 male bachelor senior accountant. He successively served as the assistant director and deputy director of Finance Department
of China Harbour Engineering Company Limited and finance manager of CHUWA Bussan Company Limited (Japan); general manager of the
Finance Department and director of Capital Settlement Center deputy chief accountant and general manager of Finance Department of China
You Hua Harbour Engineering Company(Group); general manager of Capital Department and director of Capital Settlement Center of CCCG; director
and chief accountant of China Harbour Engineering Company Limited; director vice general manager and chief accountant of CCCC Investment
Co. Ltd; director general manager and deputy Secretary of Party Committee of CCCC Finance Co. Ltd. Since December 2019 he has been a
full-time outside director of CCCG. He is now a supervisor of the Company.Born in 1963 male bachelor senior engineer. He successively served as the engineer at technological office of Shanghai Port Machinery Plant;
Liu Jianbo assistant director in engineering technology department of Shanghai Container Dock Co. Ltd. project director of ship operation department and chief engineer of engineering department of Shanghai ZPMC and vice general manager of and general manager of ZPMC Changxing Base.Currently he is the vice president of the Company.Zhou Qi 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 Office and chief engineer of the Company. Currently he is the vice president of the Company.Born in 1974 male EMBA senior engineer. He successively served as the project quality leader of Quality Control Division vice manager of
Chen Bin tire crane office of quality control division manager of quality control division vice general manager and general manager of quality inspection company vice director and vice chief engineer of quality safety office manager of quality safety division supervisor and president assistant of
the Company. Currently he is the vice president and safety director of the Company.Born in 1964 male bachelor senior engineer. He successively served as the technician in Shanghai Port Machinery Manufacturing Plant the
Shan engineer and chief engineer of ZPMC Machinery Office general manager and vice chief engineer of No.4 design office of design company vice
Jianguo director and director of ZPMC Machinery Office manager of budget assessment department and the dean of ZPMC Land-based Heavy Industry
Research & Design Institute. Currently he is the vice president of the Company.Born in 1969 male MBA senior engineer. He successively served as the technician production planner and assistant director of No. 2
Zhang Panel beater of Shanghai Port Machinery Manufacturing Plant director of gearbox branch of Shanghai Port Machinery Manufacturing Plant
Jian vice director and member of the Party committee of Shanghai Port Machinery Manufacturing Plant vice general manager of Shanghai Port Machinery Heavy Industry Co. Ltd general manager and president assistant of ZPMC Operation Office. Currently he is the vice president of the
Company.Born in 1962 male EMBA professor-level senior engineer. He successively served as the engineer of Shanghai Port Machinery Plant electrical
Fei Guo engineer of the Technology Department director of No. 5 Electrical Office vice chief engineer chief engineer director of Development Office
and vice president of ZPMC. Currently he is the chief engineer of the Company.Born in 1975 male bachelor senior economist. He successively served as the director of Technical Process Department trainee manager
of Manufacturing Department and manager of Quality Assurance Department of Zhangjiagang Base of Shanghai Port Machinery Plant;
Li project leader office manager vice director of Quality Safety Office vice general manager and general manager of mechanical supporting
Ruixiang base secretary of Party Branch vice chief economist general manager of budget assessment department general manager of Material and
Equipment Procurement Department and president assistant of ZPMC quality inspection company. Currently he is the chief economist of the
Company.Born in 1972 male EMBA senior engineer. He successively served as the project leader and vice manager of Operation Department vice
Sun Li director of Operation Office and director of Off-Shore Office general manager assistant vice president and director of the Company. Currently
he is the chief legal counsel secretary of the board and chief compliance officer of the Company.Born in 1970 male Ph.D. professor-level senior engineer. He began his career in September 1992 and successively served as the engineer
Zhu equipment leader of overseas projects vice chief of Marine Machine Department manager of Enterprise Development Department of CCCC
Lianyu First Harbor Engineering Co. Ltd; the general manager of CCCC International Shipping Co. Ltd and the vice general manager of the Equipment Manufacturing Marine Heavy Industry Department of China Communications Construction Co. Ltd. He resigned as director and chairman of the
board of the Company on March 19 2021.Born in 1975 male EMBA senior engineer. He began his career in July 1996 and successively served as the chief of Quality Inspection
Huang Department vice director of Quality Inspection No.2 Department vice general manager of quality inspection company vice general manager of
Qingfeng after-sales service department general manager of quality inspection company; vice director of Off-Shore Office vice director and director of Quality Safety Office director of Product Service Center president assistant vice president and president of the Company. He resigned as the
director and president of the Company on Feb. 26 2021.41
Name Main working experiences
Born in 1960 male bachelor senior engineer; engaged in work in August 1983. He successively served as the vice general manager of CHEC
International Engineering Branch vice general manager of Overseas Division and manager of Integrated Department of CHEC Group vice
Zhang general manager of Engineering Management Department and Operation & Management Department of China Communications Construction
Hongwen Co. Ltd vice general manager and general manager of Capital Construction Department (Dredging Department) and the executive general manager and general manager of Port Dredging Business Department of CCCC as well as the director executive general manager temporary
member of the Party committee and non-executive director of CCCC Dredging (Group) Co. Ltd. He resigned as the director of the Company on
Oct. 30 2020.Dai Born in 1967 male master of physics EMBA senior engineer. He began his career in March 1993 and successively served as the director of
Wenkai Operation Management Office and vice president of the Company. He resigned as the director and vice president of the Company on Sept. 4 2020.Born in 1962 male bachelor professor-level senior engineer. He successively served as the engineer of Technology Division of Shanghai Port
Zhang Machinery Plant; mechanical office designer vice manager and vice chief engineer of Shanghai Zhenhua Heavy Industries Co. Ltd. general
Minghai manager of Shore Bridge No.1 Company of Mechanical Office and general manager of Land-based Heavy Industry Co. Ltd. He resigned as the
supervisor of the Company on June 1 2020 and is now serving as the chief designer of the Company.Notes to other circumstances
□Applicable √Not applicable
2 Equity incentives awarded to the directors and senior executives during the reporting period
□Applicable √Not applicable
II. Incumbency of current and resigned directors supervisors and senior executives during the reporting period
1 Position at the shareholder entity
√Applicable □Not applicable
Name of in-
service staff Name of shareholding entity Position
Starting date of Expiration date
tenure of tenure
Liu Chengyun China Communications Construction Group Co. Ltd. General manager assistant March 5 2021
Statement of the position held in shareholding entity
2 Statement of the position held in other entities
√Applicable □Not applicable
Name of in- Starting Expiration
service staff Name of other entities
Position held in other
entities date of date of tenure tenure
Zhao Zhanbo School of Software Peking University Professor
Ji Linhong Department of Mechanical Engineering Tsinghua University Professor and doctoral supervisor
Shanghai United Assets and Equity Exchange Financial Assets
Exchange Shanghai International Economic and Trade Arbitration
Commission Shanghai Arbitration Commission Shanghai Court of Assistant president
Yang Jun Financial Arbitration Chinese Domain Name Dispute Settlement general manager
Center Intellectual Property Association of China Law Society director arbitrator
Company Law Association of Shanghai Law Society Shanghai Patent/ expert director
Trademark/Copyright Association.Bai Yunxia School of Economics and Management of Tongji University Investment
Director of Accounting
Centre of Cheung Kong Graduate School of Business Department research scholar
Researcher lecturer
Zhang Hua China Europe International Business School assistant professor and
associate professor
Sheng Shanghai Foreign Trade Law Firm East China University of Political Senior partner lawyer
Leiming Science and Law Shanghai Zhongmao Law Firm Guantao Law Firm. teacher etc.Statement of the position held in other entities422020
III. Remuneration of directors supervisors and senior executives
√Applicable □Not applicable
In accordance with the regulations of Articles of Association the
Decision-making process for the remuneration of directors remuneration of directors and supervisors are subject to the general
supervisors and senior executives meeting of shareholders and the remuneration of the senior executives
are assessed and approved by the chairman and president.Basis for deciding the remuneration of remuneration of directors The basic salary plus performance bonus are assessed in combination
supervisors and senior executives with the quantitative index of production and operation etc.Actual payout of remuneration for directors supervisors and All in-service and resigned director supervisor and senior executives
senior executives are paid by the Company within the reporting period.Total remuneration actually obtained by all directors supervisors
and senior executives at the end of reporting period RMB 12055600.00
IV. Change in directors supervisors and senior executives
√Applicable □Not applicable
Name Post Change Reason of change
Liu Chengyun Director chairman of the board general manager (president) Elected Job adjustment
Zhu Lianyu Director chairman of the board Resigned Job adjustment
Huang Qingfeng Director president Resigned Job adjustment
Zhang Hongwen Director Resigned Age reason
Dai Wenkai Director vice president Resigned Individual reason
Zhang Minghai Supervisor Resigned Job adjustment
V. Punishments by securities regulatory authority in recent three years
□Applicable √Not applicable
VI. Particulars about the employees in the parent company and the main subsidiaries
1 Particulars about employees
Number of in-service employees of the parent company 3109
Number of in-service employees of the main subsidiaries 5593
Total of in-service employees 8702
Number of retired employees required to be paid by the parent company and its major subsidiaries
Specialties
Category Number of staff
Production staff 3258
Sales staff 277
Technical staff 4247
Financial staff 163
Administrative staff 757
Total 8702
Education background
Education level Number (person)
Doctor 18
Master 707
Undergraduate 4220
Junior College 2001
Technical secondary school 567
High school and below 1189
Total 870243
2 Remuneration policies
√Applicable □Not applicable
In line with the Company’s development strategy it continuously perfected the remuneration distribution incentive
system perfected the performance assessment system and established and improved the performance assessment system
based on the different properties and characteristics of each entity and division; promoted the salary incentive system closely
linking the performance distribution with the unit or division performance value contribution industrial characteristics growth
phase and similar factors and comprehensively linking the staff performance with position duty and value contribution and
thus initially established the distribution mode integrating with the market.3 Training plan
√Applicable □Not applicable
In line with the Company’s development strategy the Company gradually established a rigid staff training system with
systematic directional and continuous features. The Company sets up the all-staff annual educational and training plan
at the beginning of each year and implements it according to the plan to improve the business skill level and professional
quality of staff at various levels.4 Labor outsourcing
√Applicable □Not applicable
Total of labor outsourcing hours 7310088 hours
Total of labor outsourcing remuneration RMB 392856400.00
VII. Others
□Applicable √Not applicable442020
Section IX Corporate Governance
I.Related information about corporate governance
√Applicable □Not applicable
During the reporting period the Company strictly followed the regulations specified in the Company law Securities
Law Stock Listing Rules Articles of Association and the legal requirements of China Securities Regulatory Commission
to standardize the Company’s daily operation further established and improved the internal control system improved
the internal control management and corporate governance structure strengthened the insider information management
strengthened the information disclosure continuously improved the company governance made efforts to improve the
construction of legal person governance structure and gradually established a modern enterprise system earnestly
protected the legal rights and interests of the Company and all the shareholders ensuring the sustainable and stable
development.After self-inspection the staffs who know the insider information didn’t trade the stocks of the Company before major
price information is disclosed. There is no difference between the company governance and the regulations of China
Securities Regulatory Commission.Whether there is important difference between corporate governance and the requirements of relevant regulations of
China Securities Regulatory Commission; if any please give the reason.□Applicable √Not applicable
II. Brief introduction to the general meeting of shareholders
Session of meeting Convening date Query index of the website specified for Date of disclosure for publishing resolutions publishing resolutions
General Meeting of Shareholders
in 2019 June 29 2020
www.sse.com.cn enter the stock code to
search June 30 2020
Particulars about the general meeting of shareholders
□Applicable √Not applicable
III. Duty performance of directors
1 Attendance of the directors at the board meetings and the general meeting of shareholders
Attendance
Attendance at Board Meetings at the general meeting of
Independent shareholdersDirector
Name director or Times of Times of Personal Times of not meetings Times of Times of absence attendance in
should be personal attendance by attendance Times of
attended in attendance telecommunication through a absence
for two the general
consecutive meeting of
this year proxy times shareholder
Zhu Lianyu No 5 5 5 0 0 No 1
Huang
Qingfeng No 5 5 5 0 0 No 1
Zhang
Hongwen No 4 4 4 0 0 No 0
Liu Qizhong No 5 5 5 0 0 No 1
Dai Wenkai No 4 4 4 0 0 No 1
Zhu Xiaohuai No 5 5 5 0 0 No 1
Sheng
Leiming Yes 5 5 5 0 0 No 1
Zhang Hua Yes 5 5 5 0 0 No 1
Yang Jun Yes 5 5 5 0 0 No 1
Zhao Zhanbo Yes 5 5 5 0 0 No 045
Attendance
Attendance at Board Meetings at the general meeting of
Independent shareholdersDirector
Name director or Times of Personal Times of not meetings Times of Times of Times of absence attendance in
should be personal attendance by attendance Times of through a absence for two the general attended in attendance telecommunication consecutive meeting of
this year proxy times shareholder
Ji Linhong Yes 5 5 5 0 0 No 0
Bai Yunxia Yes 5 5 5 0 0 No 0
Explanations for personal absence from the meeting for two consecutive times
□Applicable √Not applicable
Times of the board meetings convened in current year 5
Including: times of on-site meetings 0
Times of meetings convened through telecommunication 5
Times of meetings convened on-site and through telecommunication 0
2 Objections from independent directors against related issues of the Company
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
IV. As for the important suggestions and advices raised by the special interest committees under the Board of
Directors while performing their duties in the reporting period where there is any objection the details shall be
disclosed
□Applicable √Not applicable
V. Description of the risks found by the board of supervisors
□Applicable √Not applicable
VI. Particulars about the inability of the Company and its controlling shareholders to guarantee the independence
and keep independent operation capacity with regard to business personnel assets institution finance etc.□Applicable √Not applicable
Where there is horizontal competition the corresponding solutions job schedule and follow-up wok plan of the Company
□Applicable √Not applicable
VII. Establishment and implementation of the assessment mechanism and incentive mechanism for senior
executives during the reporting period
√Applicable □Not applicable
The Company appoints the directors supervisors and senior executives in accordance with the provisions of Company
Law and the Articles of Association has built up a preliminary cultivation selection supervision assessment reward
and punishment constraint system for the Company’s senior executives suitable for the actual situation. The Company
formulated corresponding administrative methods for senior executives. According to the production and development 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 diligence
and job performance. The Company will gradually improve the existing performance evaluation system and salary system
and promote medium and long term incentive system for all senior executives and the core technical personnel of the
Company to continue to stimulate the enthusiasm of the senior executives to create new achievements and to ensure the
benefit maximization and standard operation of the Company.462020
VIII. Disclosure of self-evaluation report on internal control or not
√Applicable □Not applicable
Ernst & Young LLP (special general partnership) engaged by the Company had audited the effectiveness of the internal
control of the financial statement as of December 31 2020 and issued a standard internal control audit report with clean
opinion (see the attachment to the announcement for details).Description of the important deficiencies in internal control during the reporting period
□Applicable √Not applicable
IX. Particulars about the audit report on internal control
√Applicable □Not applicable
Ernst & Young LLP (special general partnership) engaged by the Company had audited the effectiveness of the internal
control of the financial statement as of December 31 2020 and issued a standard internal control audit report with clean
opinion (see the attachment to the announcement for details).Audit report on internal control disclosed or not: Yes
Opinion type of internal control audit report: standard with clean opinion
X.Others
□Applicable √Not applicable
Section X Related Information on Corporate Bonds
□Applicable √Not applicable47
Section XI Financial Report
I. Auditors’ Report
√Applicable □Not applicable
Auditors' Report
Ernst & Young (2021) SZ No.61249778_B01
Shanghai Zhenhua Heavy Industries Co. Ltd.All shareholders of Shanghai Zhenhua Heavy Industries Co. Ltd.:
1 Opinion
We have audited the financial statements of Shanghai Zhenhua Heavy Industries Co. Ltd. (hereinafter referred to as
the "Company") which comprise the consolidated balance sheet and the Company's balance sheet as at December 31
2020 the consolidated income statement and the Company's income statement the consolidated statement of changes in
shareholders’ equity and the Company's statement of changes in owners’ equity and the consolidated statement of cash
flows and the Company's statement of cash flows for the year then ended as well as the notes to the financial statements.In our opinion the financial statements of the Company attached are prepared in all material respects in accordance
with the Accounting Standards for Business Enterprises and fairly present the consolidated financial position and the
Company's financial position as at December 31 2020 and the consolidated operating results and cash flows and the
Company's operating results and cash flows for the year then ended.2 Basis for Our Opinions
We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Our
responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Financial
Statements section of this auditors' report. According to the Code of Ethics for Certified Public Accountants of China we are
independent of the Company and we have fulfilled other responsibilities in the aspect of code of ethics. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.3 Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit of the
financial statements for the current period. The response to these matters is based on the overall audit of the financial
statements and the formation of audit opinions. We do not express our opinions on these matters separately. The following
description of how our audit addressed the key audit matter is also against this background.We have fulfilled the responsibilities stated in “Responsibilities of Certified Public Accountant for Auditing of FinancialStatement” in this report including the responsibilities related to these key auditing matters. Correspondingly our auditing
work includes the implementation of the auditing procedure designed for dealing with the great misstatement risks of the
financial statement to be evaluated. The results from the implementation of the auditing procedure by us including the
procedure to be implemented for the following key auditing matters offers a foundation for releasing the auditing opinions of
the financial statements.482020
Key Audit Matters: How our audit addressed the key audit matter:
1. Inventory depreciation reserves
Shanghai Zhenhua Heavy Industries Co. Ltd. is mainly engaged in
manufacturing the port container crane; in addition it is also engaged in the
manufacture of bulk handling machine offshore heavy-duty machine and large- Our procedure mainly included knowing and testing
sized steel structure. Its inventories mainly include engineering raw materials the validity of the control related to the provision of
outsourcing parts and components products in the process and inventory inventory depreciation reserves and the method of
goods. Since the production cycle of the products is relatively long the net calculating the net realizable value of the Group. We
realizable value of the related inventory may fluctuate with the change in the also implemented the related auditing procedures over
market demand resulting in the inventory depreciation risks. The management the inventory such as supervision of inventory to verify
sets aside the inventory depreciation reserves according to the balance of whether the management had marked the inventory
the inventory cost and the net realizable value. The net realizable value is with slow turnover and defectives and taken into full
determined as per the estimated selling price of the inventory minus the cost account in provision of inventory depreciation reserves.the estimated selling expenses and the related taxes that may occur in the In addition we obtained the computation sheet of
completion on the assumption that the management layer adopts a certain provision of inventory depreciation reserves from the
estimate and hypothesis in determining the net realizable value. In case of management rechecked the calculation method and
difference between the actual figure and the originally estimated figure the result. As to the key elements taken into consideration
related balance will affect the book value of the inventory and the depreciation by the management in calculating the net realizable
loss in the estimated fluctuation. value including the estimated selling price and the
As of December 31 2020 in the consolidated financial statements the balance cost that may occur till completion we evaluated the
of inventories was RMB 23.32 billion and the reserve for inventory depreciation hypothesis and the estimates through analyzing the
was RMB 990 million; in the financial statements of the Company the balance related historical data and comparing the after-date
of inventories was RMB 19.95 billion and the reserve for inventory depreciation data of Shanghai Zhenhua Heavy Industries Co.was RMB 1 billion. Ltd. We also rechecked the disclosure of inventory
The accounting policy and other disclosures regarding the inventory are stated depreciation reserves in financial statements.in Note V (15) Note V (43) and Note VII (9) of the financial statement.2.Provision for bad debts of accounts receivable
The accounts receivable of Shanghai Zhenhua Heavy Industries Co. Ltd. is
mainly from the business contract on port machine and ocean engineering Our procedure mainly included the evaluation of
manufacturing. Since it involves large contracted value long construction the accounting estimate relating to the depreciation
period relatively complicated technical parameters the implementation of the reserves such as the financial status and credit
contract may be affected by the periodicity of the economic environment. The rating of the counterpart; checked the account age
accounts receivable has certain risk in the recovery in case of any dispute of accounts receivable and historical repayment
in contract or the industry is in recession. The provisions for bad debts of record and evaluated whether the financial problems
accounts receivable are recognized on the basis of estimated credit losses of the counter party had effects on the recovery of
involving major judgment and estimates. The management of analyzed the accounts receivable; for the accounts receivable
the financial position of counter parties guarantee acquired for accounts evaluated based on the portfolio we rechecked the
receivable historical repayment records of accounts receivable as well as the management's setting of credit risk features portfolio
credit rating and future economic situations of counter parties for evaluating the checked the key information such as account age
credit risk of accounts receivable. and credit record of each portfolio by sampling and
As of December 31 2020 in the consolidated financial statements the balance rechecked the basis of management's evaluation of
of accounts receivable was RMB 9.10 billion and the provision for bad debts credit risk and expected credit loss amount based
of accounts receivable was RMB 1.87 billion; in the financial statements of the on the credit risk features portfolio including testing
Company the balance of accounts receivable was RMB 17.14 billion and the historical default data and checking the actual credit
provision for bad debts of accounts receivable was RMB 1.80 billion. loss in the current year; rechecked the disclosure of
The accounting policy and other disclosures regarding the provision for bad bad debt provision for accounts receivable in financial
debts of accounts receivable are stated in Note V (12) Note V (43) Note VII (5) statements.and Note XVII (1) of the financial statements.49
Key Audit Matters: How our audit addressed the key audit matter:
3. Revenue recognition
Our procedure mainly included evaluating and testing
the management's internal control related to revenue
recognition. Selected the sales contract with significant
amount checked the important contract terms related
Most of the revenue of Shanghai Zhenhua Heavy Industries Co. Ltd. comes to revenue recognition according to the five step
from the one of the construction contracts on the large-sized port equipment requirements of the new revenue standard and
heavy equipment steel structure and construction projects customized by the evaluated the management’s accounting judgment
customer. and estimate on performance obligations revenue
Since January 1 2020 the new revenue standard has been applied and the recognition amount (including variable consideration)
management has read and analyzed the contracts of various revenue types and the recognition at a certain time point or within
according to the requirements of five step method. The performance obligations a period of time. Through selecting the samples we
included in the manufacturing contract on large-sized port equipment heavy verified whether the contract revenue recognized in the
equipment and some steel structure products did not meet the conditions of year conformed to the revenue recognition conditions;
performance obligations within a certain period of time therefore based on implemented the cutoff check procedure to validate
comprehensive consideration of various factors the revenue was recognized the revenue was confirmed in the proper accounting
at the time of control transfer of relevant products. period. For the revenue recognized in a certain period
In 2020 in the consolidated financial statements the operating revenue was of time we evaluated the judgment and estimate of the
RMB 22.66 billion; in the financial statements of the Company the operating total contract cost and total processing amount made
revenue was RMB 21.79 billion. by the management and made sampling to calculate
The accounting policy and other disclosures regarding the operating revenue and check the income determined by the occurred
are stated in Note V (38) Note V (43) Note V (44) Note VII (74) and Note XVII contract cost and the expected total contract cost
(4) of the financial statements. again; implemented the analysis procedure against
the changes in revenue and gross profit of various
businesses; rechecked the disclosure of revenue
recognition in financial statements.4 Other Information
The management of Shanghai Zhenhua Heavy Industries Co. Ltd. shall be responsible for other information. The other
information comprises information of the annual report but excludes the financial statements and our auditors' report.Our opinion on the financial statements does not cover the other information and we do not and will not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information identified
above and in doing so consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed on the other information that we obtained prior to the date of this auditors'
report we conclude that there is a material misstatement of this other information we are required to report that fact. In this
regard we have nothing to report.5 Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Management is responsible for preparing the financial statements in accordance with the requirements of
Accounting Standards for Business Enterprises to achieve a fair presentation and for designing implementing and
maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements
whether due to frauds or errors.In preparing the financial statements the Management is responsible for assessing the Company’s going-concern
ability disclosing the matters related to going concern (if applicable) and using the going-concern assumption unless the
Management either intends to liquidate the Company or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's financial reporting process.6 Auditors' Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement whether due to fraud or error and to issue an auditors' report that includes our opinion. Reasonable
assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the audit standards
will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if individually or in the aggregate they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.502020
During the process of an audit conducted in accordance with audit standards we exercise professional judgment and
maintain professional scepticism throughout the audit. Meanwhile we also implement the following work:
(1)Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error
design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override of
internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3)Evaluate the appropriateness of accounting policies used by and the reasonableness of accounting estimates and
related disclosures made by the management.
(4)Conclude on the appropriateness of the Management's use of the going concern basis of accounting. Based on
the audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the ability of Shanghai Zhenhua Heavy Industries Co. Ltd. to continue as a going concern. If we conclude that a
material uncertainty exists we are required to in our auditors' report draw attention of the users of statements to the related
disclosures in the financial statements; if such disclosures are inadequate we should modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditors' report. However future events or conditions may
cause Shanghai Zhenhua Heavy Industries Co. Ltd. to cease to continue as a going concern.
(5)Evaluate the overall presentation structure and content (including the disclosures) of the financial statements and
evaluate whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.
(6)Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Company to express an opinion on the financial statements. We are responsible for the direction supervision and
performance of the group audit and bear full responsibility for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit significant
audit findings and other matters including any significant deficiencies in internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence and to communicate with them in regard to all relationships and other matters that
may reasonably be thought to affect our independence and related safeguards (if applicable).From the matters communicated with those charged with governance we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when in
extremely rare circumstances we determine that a matter should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.Ernst & Young LLP. Certified Public Accountant of China: Liu Wei
(Special General Partnership) (Engagement Partner)
Certified Public Accountant of China:Gu Chengli
Beijing China March 30 202151
II. Financial Report
Consolidated Balance Sheet
As at December 31 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31 2020 As at December 31 2019
Current assets:
Monetary funds VII (1) 2948074736 3310297451
Settlement provisions -
Lending funds -
Held-for-trading financial assets VII (2) 1601623650 1739792062
Derivative financial assets -
Notes receivable VII (4) 753000 5650000
Accounts receivable VII (5) 7227065255 4966175528
Receivables financing VII (6) 362006319 406408604
Advances to suppliers VII (7) 767426147 935878777
Premiums receivable -
Reinsurance accounts receivable -
Reserves for reinsurance contract receivable -
Other receivables VII (8) 913410163 1176561508
Including: Interest receivable -
Dividend receivable 1072390
Financial assets purchased under agreements to resell -
Inventories VII (9) 22325839116 8561251580
Contract assets VII (10) 2063296890 -
Outstanding payments for construction completed 12434158624
Assets held for sale -
Non-current assets due within one year VII (12) 1884370444 1313203581
Other current assets VII (13) 708484102 720183574
Total current assets 40802349822 35569561289
Non-current assets:
Disbursement of loans and advances
Debt investment
Other debt investments
Long-term receivables VII (16) 5077114342 5227728420
Long-term equity investments VII (17) 3042232884 2873673745
Other equity instrument investment VII (18) 61505751 61981268
Other non-current financial assets VII (19) 330094057 -
Investment properties VII (20) 467607519 418425533
Fixed assets VII (21) 19820601397 21454967299
Construction in progress VII (22) 4520147819 4380489888
Productive biological assets -
Oil and gas assets -
Right-of-use assets -
Intangible assets VII (26) 3347450714 3506541366
Development expenditures -
Goodwill VII (28) 261072463 268434934
Long-term deferred expenses VII (29) 502811 1444636522020
Consolidated Balance Sheet(Continued)
As at December 31 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31 2020 As at December 31 2019
Deferred income tax assets VII (30) 752960672 486197635
Other non-current assets VII (31) 837004289 161337287
Total non-current assets 38518294718 38841222011
Total assets 79320644540 74410783300
Current liabilities:
Short-term borrowings VII (32) 17795076565 22001319380
Borrowings from the Central Bank -
Borrowing funds -
Held-for-trading financial liabilities VII (33) 458882 7312741
Derivative financial liabilities -
Notes payable VII (35) 3600725892 3420945451
Accounts payable VII (36) 7773903147 7869378365
Advances from customers VII (37) 4893675 822987986
Contract liabilities VII (38) 11195309083
Financial assets sold for repurchase -
Deposits from customers and interbank -
Acting trading securities -
Acting underwriting securities -
Amount settled for uncompleted work 1679950879
Payroll payable VII (39) 188799969 329978281
Tax payable VII (40) 160782931 144506742
Other payables VII (41) 481065700 711389996
Including: Interest payable -
Dividends payable 352598 31701965
Fees and commissions payable -
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within a year VII (43) 1374465319 7287484513
Other current liabilities -
Total current liabilities 42575481163 44275254334
Non-current liabilities:
Reserve fund for insurance contracts -
Long-term borrowings VII (45) 16850299742 8413339986
Bonds payable -
Including: preferred stock -
Perpetual bond -
Lease liabilities -
Long-term payables VII (48) 1632757932 1741945636
Long-term payroll payable -
Estimated liabilities VII (50) 261072318 484000772
Deferred income VII (51) 388756001 458722579
Deferred income tax liabilities 106666671 8985672753
Consolidated Balance Sheet(Continued)
As at December 31 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31 2020 As at December 31 2019
Other non-current liabilities VII (52) 430372502 376626821
Total non-current liabilities 19669925166 11564492521
Total liabilities 62245406329 55839746855
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) VII (53) 5268353501 5268353501
Other equity instruments VII (54) 500000000 -
Including: preferred stock -
Perpetual bond 500000000 -
Capital reserves VII (55) 4834854332 4834854332
Less: treasury stock -
Other comprehensive income VII (57) -62927398 23530451
Special reserves VII (58) 1936153 3615638
Surplus reserves VII (59) 1651418547 1761198709
General risk preparation -
Undistributed profits VII (60) 2377187005 3651851383
Total owners' equities attributable to the owners of parent
company 14570822140 15543404014
Minority equity 2504416071 3027632431
Total owners’ equity (or shareholders' equity) 17075238211 18571036445
Total liabilities and owners’ equity (or shareholders' equity) 79320644540 74410783300
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:542020
Balance Sheet of the Parent Company
As at December 31 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31 2020 As at December 31 2019
Current assets:
Monetary funds 1902199066 2009711462
Held-for-trading financial assets 907154115 717766887
Derivative financial assets
Notes receivable 753000 5650000
Accounts receivable XVII (1) 15333326224 11188977446
Receivables financing 306365354 372373708
Advances to suppliers 4628860061 2516366730
Other receivables XVII (2) 5505896413 7850320715
Including: Interest receivable -
Dividend receivable -
Inventories 18950680070 8605357557
Contract assets 1133865802
Outstanding payments for construction completed 7399709689
Assets held for sale
Non-current assets due within one year 16068800 16068800
Other current assets 320289945 242069645
Total current assets 49005458850 40924372639
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 274746933 349516318
Long-term equity investments XVII (3) 8725608053 8748485729
Other equity instrument investment 61505751 61981268
Other non-current financial assets 330094057 -
Investment properties 467607519 418425533
Fixed assets 4016049591 4484852694
Construction in progress 659009550 352334608
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 1507604347 1537053308
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 717095880 461638248
Other non-current assets 533182276 -
Total non-current assets 17292503957 16414287706
Total assets 66297962807 57338660345
Current liabilities:
Short-term borrowings 14351318050 16511846099
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 3897225892 411567712355
Balance Sheet of the Parent Company(Continued)
As at December 31 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note As at December 31 2020 As at December 31 2019
Accounts payable 5364410446 4097874390
Advances from customers 490409652
Contract liabilities 10446873026
Amount settled for uncompleted work 2053025876
Payroll payable 173661671 312443598
Tax payable 26049457 24536759
Other payables 1083925556 1223412212
Including: Interest payable -
Dividends payable 352598 352598
Liabilities held for sale -
Non-current liabilities due within one year 709198148 5454698322
Other current liabilities
Total current liabilities 36052662246 34283924031
Non-current liabilities:
Long-term borrowings 14777075334 6446433319
Bonds payable -
Including: preferred stock -
Perpetual bond -
Lease liabilities -
Long-term payables -
Long-term payroll payable -
Estimated liabilities 253696912 470724247
Deferred income 302910467 329345661
Deferred income tax liabilities -
Other non-current liabilities 16723794 21272925
Total non-current liabilities 15350406507 7267776152
Total liabilities 51403068753 41551700183
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) 5268353501 5268353501
Other equity instruments 500000000.00 -
Including: preferred stock -
Perpetual bond 500000000.00 -
Capital reserves 4914468683 4914468683
Less: treasury stock -
Other comprehensive income -22498704 8348107
Special reserves -
Surplus reserves 1650910274 1760690436
Undistributed profits 2583660300 3835099435
Total owners’ equity (or shareholders' equity) 14894894054 15786960162
Total liabilities and owners’ equity (or shareholders' equity) 66297962807 57338660345
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:562020
Consolidated Income Statement
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note 2020 2019
I. Total operating revenue VII (61) 22655141652 24595587883
Including: Operating revenue 22655141652 24595587883
Interest income -
Premiums earned -
Fee and commission income -
II. Total operating cost 22418218004 24299890918
Including: operating costs VII (61) 19413265254 20590531322
Interest expenses -
Fee and commission expense -
Surrender value -
Net amount of compensation payout -
Net reserves for insurance liabilities -
Policy holder dividend expense -
Reinsurance expenses -
Taxes and surcharges VII (62) 106278271 108028681
Selling and distribution expenses VII (63) 105763639 122517036
General and administrative expenses VII (64) 937700839 1095131287
Research and development expenditures VII (65) 737468137 887096178
Financial expenses VII (66) 1117741864 1496586414
Including: interest expenses 1343245061 1702292369
Interest income 369113644 331452183
Plus: other incomes VII (67) 93228051 88459588
Income from investment (loss expressed with “-”) VII (68) 413517783 174600552
Including: Income from investment of joint venture and cooperative enterprise 138892946 110724316
Income from derecognition of financial assets measured at amortized
cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”) VII (70) 94172456 88019844
Credit impairment losses (loss expressed with “-”) VII (71) -138083561 -38761593
Assets impairment losses (loss expressed with “-”) VII (72) -213647223 -52494284
Income from disposal of assets (loss expressed with “-”) VII (73) 6755688 49091913
III. Operating profits (loss expressed with “-”) 492866842 604612985
Plus: non-operating income VII (74) 17337499 16462710
Less: non-operating expenditure VII (75) 7997910 30203498
IV. Total profits (total loss expressed with “-”) 502206431 590872197
Less: income tax expenses VII (76) 86071000 93750584
V. Net profits (net loss expressed with “-”) 416135431 497121613
(I) Classified by business continuity
1. Net profits from ongoing operation (net loss expressed with “-”) 416135431 497121613
2. Net profits from discontinuing operation (net loss expressed with “-”)
(II) Classified by ownership
1. Net profit attributable to the shareholders of parent company (net loss expressed with “-”) 422240299 514930143
2. Minority interests (net loss expressed with “-”) -6104868 -1780853057
Consolidated Income Statement(Continued)
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note 2020 2019
VI. Net of tax of other comprehensive income -109245376 22021165
(I) Net amount of after-tax other comprehensive income attributable to the owners of the
parent company -86457849 15806812
1. Other comprehensive income that can't be reclassified into profit and loss -404189 5656529
(1) Remeasure the variation of net indebtedness or net asset of defined benefit plan -
(2) Other comprehensive income that can't be reclassified into profit and loss in the invested
enterprise under equity method -
(3) Fair value change of other equity instrument investments -404189 5656529
(4) Fair value change of enterprise credit risks -
2. Other comprehensive income that will be reclassified into profit and loss -86053660 10150283
(1) Other comprehensive income that will be reclassified into profit and loss in the invested
enterprise under equity method -28663890 -2004706
(2) Fair value change of other debt investments
(3) Amount of financial assets reclassified into other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash flow hedging reserve
(6) Translation reserve -57389770 12154989
(7) Others -
(II) Net of tax of other comprehensive income attributable to the minority shareholders -22787527 6214353
VII. Total comprehensive income 306890055 519142778
(I) Total comprehensive income belonging to parent company 335782450 530736955
(II) Total comprehensive income belonging to minority shareholders -28892395 -11594177
VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share) 0.08 0.10
(II) Diluted earnings per share (Yuan/share) 0.08 0.10
In case of business combination under common control in current period the net profit realized by the combined party
before combination was RMB 0 and the net profit realized by the combined party in the previous period was RMB 0.Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:582020
Income Statement of Parent Company
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note 2020 2019
I. Operating revenue XVII (4) 21792572077 25040304430
Less: operating costs XVII (4) 19380258843 22072761466
Taxes and surcharges 45189858 46993017
Selling and distribution expenses 85994613 95598294
General and administrative expenses 434987831 443039394
Research and development expenditures 588658451 733613874
Financial expenses 1547343795 1196403287
Including: interest expenses 1050532128 1287736007
Interest income 25876907 25417765
Plus: other incomes 54518751 66222311
Income from investment (loss expressed with “-”) XVII (5) 486388303 107761737
Including: Income from investment of joint venture and cooperative enterprise 134225470 106972779
Income from derecognition of financial assets measured at amortized cost
Net exposure hedging gain (loss expressed with “-”)
Income from fair value changes (loss expressed with “-”) 403444667 151121780
Credit impairment losses (loss expressed with “-”) -122341214 -16036863
Assets impairment losses (loss expressed with “-”) -207234914 -59200823
Income from disposal of assets (loss expressed with “-”) 6340002 4536497
II. Operating profits (loss expressed with “-”) 331254281 706299737
Plus: non-operating income 5366069 5369991
Less: non-operating expenditure 3261214 6293977
III. Total profits (total loss expressed with “-”) 333359136 705375751
Less: income tax expenses -4564696 61014198
IV. Net profits (loss expressed with “-”) 337923832 644361553
(I) Net profits from ongoing operation (net loss expressed with “-”) 337923832 644361553
(II) Net profits from discontinuing operation (net loss expressed with “-”) -
V. Net of tax of other comprehensive income -30846811 4035024
(I) Other comprehensive income that can't be reclassified into profit and loss -404189 5656529
1. Remeasure the variation of net indebtedness or net asset of defined benefit plan -
2. Other comprehensive income that can't be reclassified into profit and loss in the invested
enterprise under equity method -
3. Fair value change of other equity instrument investments -404189 5656529
4. Fair value change of enterprise credit risks -
(II) Other comprehensive income that will be reclassified into profit and loss -30442622 -1621505
1. Other comprehensive income that will be reclassified into profit and loss in the invested
enterprise under equity method -28663890 -2004706
2. Fair value change of other debt investments
3. Amount of financial assets reclassified into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash flow hedging reserve
6. Translation reserve -1778732 383201
7. Others -
VI. Total comprehensive income 307077021 648396577
VII. Earnings per share:
(I) Basic earnings per share (Yuan/share)
(II) Diluted earnings per share (Yuan/share)
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:59
Consolidated Statement of Cash Flows
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note 2020 2019
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 24070729586 23025755641
Net increase of customer deposit and deposit from other banks -
Net increase of borrowings from central bank -
Net increase of borrowing funds from other financial institutions -
Cash from obtaining original insurance contract premium -
Net cash received from reinsurance business -
Net increase in the deposits and investment of insured -
Cash from interest handling charges and commissions -
Net increase of borrowing funds -
Net increase of repurchase of business funds -
Net cash from acting trading securities -
Refund of tax and levies 851809553 1271698523
Other cash received related to operating activities 338290726 329767258
Subtotal cash inflows from operating activities 25260829865 24627221422
Cash paid for goods purchased and services received 21342869982 19942201097
Net increase of customer loans and advances
Net increase of amount due from central bank and interbank
Cash paid for original insurance contract claims payment
Net increase of lending funds
Cash paid for interest handling charges and commissions
Cash paid for policy dividend
Cash paid to and for employees 2178947468 2190735091
Taxes and fees paid 326093816 296562379
Other cash paid related to operating activities 593529579 907509746
Subtotal cash outflows from operating activities 24441440845 23337008313
Net cash flows from operating activities 819389020 1290213109
II. Cash flows from investment activities:
Cash from investment withdrawal 209790000 50000000
Cash from investment income 267656685 73626236
Net cash received from disposal of fixed assets intangible assets and other long-term assets 20727181 283066093
Net cash from disposal of subsidiaries and other business units -
Other cash received related to investment activities 337058520 267388460
Subtotal cash inflows from investment activities 835232386 674080789
Cash paid for purchase of fixed assets intangible assets and other long-term assets 1638904437 1735742239
Cash paid for investments 134489526 485500000
Net increase in hypothecated loan -
Net cash paid for obtaining subsidiaries and other business units -
Other cash paid related to investment activities 266251559 -
Subtotal cash outflows from investment activities 2039645522 2221242239
Net cash flow from investment activities -1204413136 -1547161450
III. Cash flows from financing activities:
Cash from absorption of investments 379445000 808250000602020
Consolidated Statement of Cash Flows(Continued)
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note 2020 2019
Including: cash received from subsidies’ absorption of minority shareholders’ investment 379445000 808250000
Cash received from issuance of other equity instruments 500000000
Cash received from borrowings 41091924772 31773610203
Other cash received related to financing activities 698202619 819334975
Subtotal cash inflows from financing activities 42669572391 33401195178
Cash repayments of amounts borrowed 39243737056 29962425560
Cash paid for distribution of dividends profits or interest expenses 1666808625 2053070224
Including: dividends and profits paid by subsidiaries to minority shareholders 46431030 973150
Other cash paid related to financing activities 1409615762 1243765574
Subtotal cash outflows from financing activities 42320161443 33259261358
Net cash flows from financing activities 349410948 141933820
IV. Impact of exchange rate movements on cash and cash equivalents -134669468 34052125
V. Net increase of cash and cash equivalents -170282636 -80962396
Plus: beginning balance of cash and cash equivalents 3068024976 3148987372
VI. Ending balance of cash and cash equivalents 2897742340 3068024976
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:61
Statement of Cash Flows of the Parent Company
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY
Item Note 2020 2019
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 21198017154 20652573566
Refund of tax and levies 824627008 1240029186
Other cash received related to operating activities 272781596 311770463
Subtotal cash inflows from operating activities 22295425758 22204373215
Cash paid for goods purchased and services received 20992122517 17781170677
Cash paid to and for employees 1113852152 1045121920
Taxes and fees paid 71734723 74252976
Other cash paid related to operating activities 530324494 694695689
Subtotal cash outflows from operating activities 22708033886 19595241262
Net cash flows from operating activities -412608128 2609131953
II. Cash flows from investment activities:
Cash from investment withdrawal 540351396 579983
Cash from investment income 289106953 10538958
Net cash received from disposal of fixed assets intangible assets and other long-term assets 13953970 59069806
Net cash from disposal of subsidiaries and other business units -
Other cash received related to investment activities - 9674112
Subtotal cash inflows from investment activities 843412319 79862859
Cash paid for purchase of fixed assets intangible assets and other long-term assets 464585090 121396662
Cash paid for investments 471062850 453354150
Net cash paid for obtaining subsidiaries and other business units -
Other cash paid related to investment activities -
Subtotal cash outflows from investment activities 935647940 574750812
Net cash flow from investment activities -92235621 -494887953
III. Cash flows from financing activities:
Cash from absorption of investments -
Cash received from issuance of other equity instruments 500000000
Cash received from borrowings 34915443955 23196312114
Other cash received related to financing activities -
Subtotal cash inflows from financing activities 35415443955 23196312114
Cash repayments of amounts borrowed 33153717317 23435344092
Cash paid for distribution of dividends profits or interest expenses 1409748744 1641001571
Other cash paid related to financing activities 203727816 407455030
Subtotal cash outflows from financing activities 34767193877 25483800693
Net cash flows from financing activities 648250078 -2287488579
IV. Impact of exchange rate movements on cash and cash equivalents -58610469 12864249
V. Net increase of cash and cash equivalents 84795860 -160380330
Plus: beginning balance of cash and cash equivalents 1770070810 1930451140
VI. Ending balance of cash and cash equivalents 1854866670 1770070810
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:62202063
Consolidated Statement of Changes in Owners’ Equity
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY2020
Equity attributable to the owners of the parent company
Item
Paid-in capital Other equity instruments Minority Total owners’
(or share Capital Less: treasury
Other Special Surplus General risk Undistributed equity equity
Preferred Perpetual
capital) Others reserves stock
comprehensive reserves reserves preparation profits Others Sub-total
stock bond income
I. Balance at the end of the last year 5268353501 4834854332 23530451 3615638 1761198709 3651851383 15543404014 3027632431 18571036445
Plus: changes in accounting policies -143572545 -1399694619 -1543267164 -71475128 -1614742292
Prior period error correction
Business combination under common control
Others
II. Beginning balance in current year 5268353501 4834854332 23530451 3615638 1617626164 2252156764 14000136850 2956157303 16956294153
III. Increase/decrease in the current year (“-” for decrease) 500000000 -86457849 -1679485 33792383 125030241 570685290 -451741232 118944058
(I) Total comprehensive income -86457849 422240299 335782450 -28892395 306890055
(II) Owner’s invested and decreased capital 500000000 500000000 237775830 737775830
1. Common stock invested by the owners
2. Capital invested by other equity instrument holders 500000000 500000000 500000000
3. Amount of share-based payment included in the owner’s equity 　 　
4. Disinvestment by minority shareholders of subsidiaries -141669170 -141669170
5. Investments received by subsidiaries from minority shareholders 379445000 379445000
6. Others
(III) Disposal of subsidiaries -614227994 -614227994
(IV) Profit distribution 33792383 -297210058 -263417675 -46431030 -309848705
1. Withdrawal of surplus reserves 33792383 -33792383
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders) -263417675 -263417675 -46431030 -309848705
4. Others
(V) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation of defined benefit plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(VI) Special reserves -1679485 -1679485 34357 -1645128
1. Amount withdrawn in the current year 82412828 82412828 2590987 85003815
2. Amount used in the current year 84092313 84092313 2556630 86648943
(VII) Others
IV. Balance at the end of the current year 5268353501 500000000 4834854332 -62927398 1936153 1651418547 2377187005 14570822140 2504416071 1707523821164
Consolidated Statement of Changes in Owners’ Equity(Continued)
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY2019
Equity attributable to the owners of the parent company
Item
Paid-in capital Other equity instruments Minority Total owners’
(or share Capital Less: treasury
Other Special Surplus General risk Undistributed equity equity
Preferred Perpetual
capital) Others reserves stock
comprehensive
income reserves reserves preparation profits
Others Sub-total
stock bond
I. Balance at the end of the last year 5268353501 - - - 4648919658 - 223853860 3019173 1696762554 - 3344953206 - 15185861952 2426634780 17612496732
Plus: changes in accounting policies - - - - - - -216130221 - - - 119821864 - -96308357 -9011824 -105320181
Prior period error correction
Business combination under common control
Others
II. Beginning balance in current year 5268353501 - - - 4648919658 7723639 3019173 1696762554 - 3464775070 - 15089553595 2417622956 17507176551
III. Increase/decrease in the current year (“-” for decrease) - 185934674 15806812 596465 64436155 187076313 - 453850419 610009475 1063859894
(I) Total comprehensive income - - - - - - 15806812 - - - 514930143 - 530736955 -11594177 519142778
(II) Owner’s invested and decreased capital - - - - 185934674 - - - - - - - 185934674 622315326 808250000
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. Investments received by subsidiaries from minority shareholders - - 185934674 185934674 622315326 808250000
(III) Profit distribution 64436155 - -327853830 - -263417675 -973150 -264390825
1. Withdrawal of surplus reserves 64436155 - -64436155 -
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders) - - - - - - - - - - -263417675 - -263417675 -973150 -264390825
4. Others
(IV) Internal carry-forward of owners’ equity
1.Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation of defined benefit plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves - - - - - - - 596465 - - - - 596465 261476 857941
1. Amount withdrawn in the current year - - - - - - - 71228319 - - - - 71228319 4507523 75735842
2. Amount used in the current year - - - - - - - 70631854 - - - - 70631854 4246047 74877901
(VI) Others
IV. Balance at the end of the current year 5268353501 - - - 4834854332 - 23530451 3615638 1761198709 - 3651851383 - 15543404014 3027632431 18571036445
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:202065
Statement of Changes in Owners’ Equity of the Parent Company
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY2020
Other equity instruments Other
Item Paid-in capital (or Less: treasury Special Undistributed Total owners’
Preferred Capital reserves comprehensive Surplus reservesshare capital) Perpetual bond Others stock reserves profits equity
stock income
I. Balance at the end of the last year 5268353501 4914468683 8348107 1760690436 3835099435 15786960162
Plus: changes in accounting policies -143572545 -1292152909 -1435725454
Prior period error correction
Others
II. Beginning balance in current year 5268353501 4914468683 8348107 1617117891 2542946526 14351234708
III. Increase/decrease in the current year (“-” for decrease) 500000000 -30846811 33792383 40713774 543659346
(I) Total comprehensive income -30846811 337923832 307077021
(II) Owner’s invested and decreased capital 500000000 500000000
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders 500000000 500000000
3. Amount of share-based payment included in the owner’s equity
4. Others
(III) Profit distribution 33792383 -297210058 -263417675
1. Withdrawal of surplus reserves 33792383 -33792383
2. Distribution of owners (or shareholders) -263417675 -263417675
3. Others
(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation of defined benefit plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year 46142567 46142567
2. Amount used in the current year 46142567 46142567
(VI) Others
IV. Balance at the end of the current year 5268353501 500000000 4914468683 -22498704 1650910274 2583660300 1489489405466
Statement of Changes in Owners’ Equity of the Parent Company(Continued)
January to December in 2020
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd. Unity: Yuan Currency: CNY2019
Item Paid-in capital Other equity instruments Other Capital Less: treasury Special Surplus Undistributed Total owners’
(or share comprehensive
Preferred stock Perpetual bond Others reserves stock reserves reserves profits equitycapital) income
I. Balance at the end of the last year 5268353501 - - - 4914468683 - 71258509 - 1696254281 3520430440 15470765414
Plus: changes in accounting policies -66945426 - - -1838728 -68784154
Prior period error correction
Others
II. Beginning balance in current year 5268353501 - - - 4914468683 - 4313083 - 1696254281 3518591712 15401981260
III. Increase/decrease in the current year (“-” for decrease) - - - - - - 4035024 - 64436155 316507723 384978902
(I) Total comprehensive income - - - - - - 4035024 - - 644361553 648396577
(II) Owner’s invested and decreased capital
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders
3. Amount of share-based payment included in the owner’s equity
4. Others
(III) Profit distribution - - - - - - - - 64436155 -327853830 -263417675
1. Withdrawal of surplus reserves - - - - - - - - 64436155 -64436155 -
2. Distribution of owners (or shareholders) - - - - - - - - - -263417675 -263417675
3. Others
(IV) Internal transfer of owner’s equity
1. Capital surplus transfer to paid-in capital (or capital stock)
2. Earned surplus transfer to paid-in capital (or capital stock)
3. Earned surplus covering the deficit
4. Carryforward retained earnings in variation of defined benefit plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year - - - - - - - 43399676 - - 43399676
2. Amount used in the current year - - - - - - - 43399676 - - 43399676
(VI) Others - - - - - - - - - - -
IV. Balance at the end of the current year 5268353501 - - - 4914468683 - 8348107 - 1760690436 3835099435 15786960162
Legal Representative: Person in charge of Person in charge of
accounting work: accounting agency:2020
III. Company profile
1 Company profile
√Applicable □Not applicable
Shanghai Zhenhua Heavy Industries Co. Ltd. (hereinafter referred to as “the Company”) is a joint-stock company limited
established on September 8 1997 through restructuring Shanghai Zhenhua Port Machinery Company Limited (hereinafter
referred to as “Zhenhua Company”). Both the registration place and the address of the headquarters are in Shanghai City P. R.China.As approved by ZWFZ (1997) No.42 Document issued by the Securities Commission under the State Council the
Company issued 100 million domestically-listed shares held by the foreign investors (B-share) from July 15 1997 till July 17
1997. The B-shares were listed for trading at Shanghai Stock Exchange on Aug. 5 1997.As approved by ZJFXZ (2000) No. 200 Document of China Securities Regulatory Commission the Company
additionally issued of 88 million common shares (RMB denominated) (A-share) held by the domestic investors in December
2000. The A-shares were listed for trading at Shanghai Stock Exchange on Dec. 21 2000.As approved by ZJFXZ (2004) No.165 Document of China Securities Regulatory Commission the Company additionally
issued 114280000 A-shares held by the domestic investors on December 23 2004. The additionally issued A-shares were
listed at Shanghai Stock Exchange respectively for trading on December 31 2004 and January 31 2005.As approved by ZJFXZ (2007) No. 346 Document of China Securities Regulatory Commission the Company
additionally issued 125515000 A-shares held by the domestic investors on October 15 2007. The additionally issued
A-shares were listed at Shanghai Stock Exchange for trading on October 23 2007 and January 23 2008 respectively.As approved by ZJXKZ (2009) No.71 Document of China Securities Regulatory Commission the Company privately
placed 169794680 A-shares on Sept. 22 2008 to its controller China Communications Construction Co. Ltd. (hereinafter
referred to as “China Communications Corporation”). A-shares privately placed were the tradable shares with limited trading
conditions. From Mar. 20 2012 on the term of trading limitation expired for above-mentioned A-shares which were listed at
Shanghai Stock Exchange for trading.By December 31 2020 after all issuances of the shares and bonus shares distributed in the past year the total shares
of the Company amounted to 5268353501 shares par value per share was RMB 1. The share capital totaled up to RMB
5268353501.On December 18 2005 China Road and Bridge Construction Group General Company and the Company’s former
controlling shareholder China Harbor Construction (Group) General Company were merged into China Communications
Construction (Group) Co. Ltd after restructuring (hereafter referred to as “CCCG”). In accordance with the Official Reply to
Overall Reorganization and Overseas-listed and Domestically-listed Share of China Communications Construction Co. Ltd.(GZGG [2006] No.1063 Document) by State-owned Assets Supervision and Administration Commission of the State Council
on Aug. 16 2006 the reorganization proposal of China Communications Construction (Group) Co. Ltd approved in the
Official Reply to the Issues Concerning Management of State-owned Stock Equity of China Communications Construction
Co. Ltd. (GZCQ [2006] No.1072 Document) on Sept. 30 2006 and the Official Reply to Approval of China Communications
Construction Co. Ltd.’s Announcement of Purchase Report of Road and Bridge Construction Co. Ltd. and Shanghai
Zhenhua Port Machinery (Group) Co. Ltd. and Exemption of Their Obligations for Purchase by Offer (ZJGSZ [2006] No.227 Document) CCCG solely initiated the incorporation of China Communications Construction Co. Ltd. on Oct. 8 2006
and invested the stock equity of the Company held into the newly incorporated China Communications Co. Ltd. With the
completion of reorganization China Communications Co. Ltd thus became the controlling shareholder of the Company.In 2016 the Company was granted the Uniform Social Credit Code of 91310000607206953D.On July 18 2017 the board of directors of China Communications Construction Co. Ltd. discussed and approved
the Proposal for Transfer of Some Shares of Shanghai Zhenhua Heavy Industries (Group) Co. Ltd by Agreement and
Associated Transaction and agreed to transfer totally 1316649346 shares of this Company held by it to CCCG and CCCG
(Hong Kong) Holdings Co. Ltd. (hereinafter referred to as “CCCG Hong Kong”) accounting for 29.990% of the total shares
of this Company after that China Communications Construction Co. Ltd. held 16.239% of the stock equity of this Company.The transfer and registration of shares was accomplished on December 27 2017. On the date of the transfer of shares
CCCG directly held 552686146 A-shares of this Company (accounting for 12.589% of the total shares of this Company)
indirectly held 763963200 B-shares of this Company through CCCG (Hong Kong) (accounting for 17.401% of the total
shares of the Company) and held 712951703 A-shares of this Company through China Communications Construction Co.Ltd. (accounting for 16.239% of the total shares of this Company) as a result it became the controlling shareholder of the
Company.The Company and its subsidiaries (hereinafter collectively referred to as “the Group”) was mainly engaged in design
construction installation and contracting of large-sized port handling system and equipment offshore heavy-duty equipment
engineering machinery engineering vessel and large-sized metal structural members and their parts and components; repair
of vessel; leasing of self-produced crane sales of the self-produced products; international shipment by available special
transportation vessel and specialized contracting for steel structure engineering.The financial statements have been approved by the resolution of the Board of Directors of the Company on March 30
2021.67
2 Scope of consolidated financial statements
√Applicable □Not applicable
The consolidation scope of the consolidated financial statements is determined based on control. For the changes in the
current period and the main subsidiaries included in the scope of consolidation please see Note IX.IV. Basis of preparation for financial statements
1 Basis of preparation
The financial statements are prepared on the basis of the Accounting Standards for Business Enterprise– Basic
Standards issued by the Ministry of Finance and the subsequently issued and revised specific accounting principlesguidelines explanations and other related regulations (hereinafter collectively referred to as “Accounting Standards forBusiness Enterprise”).2 Going concern
√Applicable □Not applicable
The financial statements of the Company have been presented on a going concern basis.As of December 31 2020 the current liabilities of the Group were about RMB 1.8 billion beyond the current assets.At the time of preparing the financial statements for the current year in view of the facts that the Group has obtained the
bank credit line and the financing record and it has established good cooperation relationship with all banks and financial
institutions with good operation status the Board of Directors of the Company believes that the Group may continue
acquiring sufficient financing sources and operating cash flows to guarantee the funds required for operation repayment
of expired debts and capital expenditures. Therefore the Board of Directors of the Company firmly believes to prepare the
annual financial statements for the current year on a basis of going-concern.While preparing the financial statements except for some financial instruments the valuation principle of historical cost
shall be adopted. If the assets are impaired the provision for impairment is made in accordance with relevant provisions.V. Principal accounting policies and accounting estimates
Specific accounting policies and accounting estimates tips
√Applicable □Not applicable
The Company determines the specific accounting policies and accounting estimates based on actual production and
operation characteristics which are mainly reflected in the provision for bad debts receivable inventory valuation methods
business accounting of construction contracts depreciation of fixed assets amortization of intangible assets measurement
model of investment properties and income recognition and measurement and so on.1 Statement on compliance with the Accounting Standards for Business Enterprises
The financial statements meet the requirements of the Accounting Standards for Business Enterprises and truly and
completely reflect the financial position of the Company and the Group as at December 31 2020 and the operating results
and cash flows for the year then ended.2 Accounting period
The Group adopts calendar year as the accounting year which commences on January from the 1 and ends on
December 31 of each year.3 Operating cycle
□Applicable √Not applicable
4 Functional currency
RMB is the recording currency of the Group and also the currency used in the financial statements. Unless otherwise
specified the financial statements are presented in RMB.The subsidiaries joint ventures and associates under the Group shall on the basis of the main economic environment
in which they operate decide their own recording currency and convert them into RMB when preparing financial statements.5 Accounting treatment of business combination under common control and not under common control
√Applicable □Not applicable
Business combinations are classified into business combination under common control and business combination not
under common control.Business combination under common control
The business combination under common control is a business combination in which all of the combining enterprises682020
are ultimately controlled by the same party or the same parties both before and after the business combination and on which
the control is not temporary. In a business combination under common control the party which obtains control of other
combining enterprise on the combination date is the absorbing party the other combining enterprise is the combined party.The combination date refers to the date on which the combining party actually obtains control on the combined party.The assets and liabilities that the combining party obtains in a business combination under common control(including the
goodwill formed by the acquisition of the combined party by the ultimate controlling party) are subject to the corresponding
accounting treatment in accordance with the carrying amount in the financial statements of the ultimate controlling party
on the combination date. The difference between the carrying amount of the net assets obtained from the combination and
the carrying amount of the consideration paid (or total par value of the shares issued) for the combination is treated as an
adjustment to capital premium in the capital reserves and the capital reserves carried out under the former system. If the
capital premium is not sufficient to absorb the difference the remaining balance is adjusted against retained earnings.Business combination not under common control
The business combination not under common control is a business combination in which all of the combining enterprises
are not controlled by the same party or the same parties before and after the combination. As for the business combination
not under common control the party which obtains the control of other combining enterprises on the acquisition date is the
acquirer and the other combining enterprises is the acquiree. The acquisition date refers to the date on which the acquirer
actually obtains control on the acquiree.The identifiable assets liabilities and contingent liabilities obtained of the acquiree in the business combination not
under common control shall be measured at fair value on the acquisition date.The positive balance between the sum of the fair value of the combined consideration paid (or fair value of the issued
equity securities) and the fair value of the held stock equity of the acquiree before the acquisition date and the fair value of
the identifiable net assets obtained in the combination from the acquiree is confirmed as goodwill and shall be accounted
for subsequent measurement after subtracting the accumulated impairment losses from the cost. If the sum of the fair value
of the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stock equity of
the acquiree before the acquisition date is smaller than the fair value of the identifiable net assets of the acquiree obtained
in the combination firstly recheck the measurement of the fair value of the identifiable assets liabilities and contingent
liabilities obtained from the acquiree and the fair value of the combined consideration paid (or fair value of the issued equity
securities) and the fair value of the held stock equity of the acquiree before the acquisition date after that if the sum the
fair value of the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stock
equity of the acquiree before the acquisition date is still smaller than the fair value of the identifiable net assets obtained in
combination from the acquiree the balance shall be included in the current profit or loss.6 Preparation of consolidated financial statements
√Applicable □Not applicable
The consolidation scope of consolidated financial statements is determined on the basis of control covering the financial
statements of the Company and all the subsidiaries. A subsidiary is a subject which is controlled by the Company (including
the enterprise the separable part of the invested entity and the structural entity controlled by the Company).When preparing the consolidated financial statements the subsidiary adopts the accounting period and the accounting
policies consistent with the Company. Assets liabilities equity income expenses and cash flows arising from all transactions
between the Group’s internal companies are fully offset at the time of combination.If the current losses borne by the minority shareholders of the subsidiary exceed the shares held by the minority
shareholders in the initial shareholders’ equity of the subsidiary the balance still offsets the minority’s equity.For the subsidiaries acquired in business combination not under common control the operating results and the cash flows
of the acquiree shall be included in the consolidated financial statements on the date of acquisition of control till the termination of
control. When preparing the consolidated financial statements the financial statements of subsidiaries shall be adjusted based on
the fair value of various identifiable assets liabilities and contingent liability confirmed on the acquisition date.For the subsidiaries acquired in business combination under common control the operating results and the cash flows
of the combined party shall be included in the consolidated financial statements at the beginning of the combination period.When preparing the consolidated financial statements relevant items of the previous financial statements shall be adjusted
and the reporting entity formed after the consolidation is regarded as existed since the ultimate controlling party begins to
implement control.If changes in the relevant facts and circumstances lead to changes in one or more control elements the Group will re-
evaluate whether or not the investee is controlled.The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until the
loss of control. If the above-mentioned transactions are part of a package transaction the transactions are treated as a
transaction dealing with the equity investment of the subsidiary and losing control. However before the loss of control the
difference between the disposal price and the book value of the long-term equity investment corresponding to the disposed
equity is recognized as other comprehensive income in individual financial statements and transferred to the current profit
or loss when the control is lost. If the above-mentioned transactions are not part of a package transaction accounting
treatment shall be carried out for each transaction separately according to whether the control is lost or not. If the control is
lost the remaining equity is re-measured at fair value at the date when control is lost. The difference between the sum of the69
consideration received on disposal and the fair value of remaining equity and the share of the former subsidiary's net assets
cumulatively calculated from the acquisition date according to the original proportion of shareholders' equity is included in
the profit or loss in the period in which control is lost. If goodwill is involved the amount of the goodwill shall be deducted
when calculating and determining the profit or loss on the disposal of the subsidiary. Other comprehensive income related
to the equity investment of the original subsidiary shall be accounted on the same basis as the subsidiary’s direct disposal
of relevant assets or liabilities when the control is lost. The shareholders’ equity recognized due to changes in shareholders’
equity other than net profit or loss other comprehensive income and profit distribution related to the original subsidiary shall
be transferred to current profit or loss when the control is lost.7 Classification of joint venture arrangement and methods of joint operation accounting treatment
□Applicable √Not applicable
8 Recognition criteria of cash and cash equivalents
Cash is the Group’s cash on hand and the deposits that can be readily drawn on demand. Cash equivalents are short-
term highly liquid investments held by the Group that are readily convertible to known account of cash and which are subject
to an insignificant risk of changes in value.9 Foreign currency transactions and transaction of financial statements denominated in foreign currency
√Applicable □Not applicable
In the case of a foreign currency transaction the Group translates the amount of foreign currency into the amount of the
recording currency.At the time of initial confirmation the amount of foreign currency transaction shall be translated into the amount of the
recording currency at the spot rate of the transaction date. On the date of balance sheet the currency exchange rate of the
currency denominated items shall be translated at the spot rate on the date of balance sheet. The transaction difference of
settlement and monetary items arising therefrom in addition to the difference arising from foreign currency special borrowing
relating to the assets of which the purchase and construction conform to the capitalized conditions which shall be handled
in accordance with the principle of capitalization of borrowing costs shall be included in the current profit or loss. The foreign
currency non-currency items calculated on historical cost basis are still translated at spot rate on the date of transaction
not changing the amount of its recording currency. The foreign currency non-monetary items measured at fair value shall
be translated at the spot rate on fair value determination date and the difference arising therefrom shall be included in the
current profit or loss or other comprehensive income according to the nature of the non-monetary items.In the case of overseas business the Group translates its recording currency into RMB in preparing the financial
statements: for assets/liabilities in the balance sheet spot exchange rate on the date of balance sheet is used for translation.As for the items under the shareholders’ equity except for those under “undistributed profits” other items are translated using
the spot exchange rate at the time of occurrence; the income and expense items in the income statement shall be translated
at the spot exchange rate of the transaction. The conversion difference of foreign currency statements arising from above
translation shall be recognized as other comprehensive income. When disposing overseas operations other comprehensive
income related to the overseas operation shall be transferred into the current profits and losses partial disposal shall be
calculated according to the proportion of disposal.Foreign currency cash flows shall be translated at the spot exchange rate on the day of occurrence of the cash flow.Cash flow from overseas subsidiaries is translated at the spot exchange rate on the day of occurrence of the cash flow.Effect of changes in exchange rate on cash amount is shown separately in the cash flow statements as an adjustment item.10 Financial instruments
√Applicable □Not applicable
Financial instrument is the contract that forms the financial assets of an enterprise and the financial liabilities or equity
instruments of the other entities.Recognition and de-recognition of financial instruments
The Group recognizes a financial asset or financial liability when becoming a party to a financial instrument contract.Once the following conditions are satisfied the Group will de-recognize financial assets (or part of financial assets or of
a portfolio of similar financial assets) i.e. writing off from its account and balance sheet:
(1) The right to receive cash flows from financial assets expires;
(2) The right to receive the cash flow from financial asset has been transferred or have assumed the obligation in the
“pass-through agreement” to pay the collected cash flow timely to the third party in full; and (a) has transferred substantially
almost all the risks and rewards of ownership of the financial asset or (b) although does not transfer or retain substantially
nearly all of the risks and rewards of ownership of the financial asset but has given up the control over the financial asset.In the event that the liability of a financial liability has been fulfilled cancelled or expired the financial liabilities shall be
de-recognized. If the existing financial liability is replaced by the same creditor with another financial liabilities of virtually
entirely different terms or the terms of the existing liabilities are almost entirely modified substantially such substitutions702020
or modifications will be handled as the derecognition of the original liability and the recognition of new liabilities and the
difference will be included in current profit or loss.In case of trading financial assets in the conventional way such financial assets will be recognized and de-recognized
on the trading day. Trading financial assets in the conventional way refers to collecting or delivering financial assets within
the time limit prescribed in the law or the prevailing practice in accordance with the terms and conditions of the contract.Trading day is the date on which the Group commits to buy or sell financial assets.Classification and measurement of financial assets
At the initial recognition the Group's financial assets based on the Group's management model of financial assets and
the contract cash flow characteristics of financial assets are classified as financial assets measured at fair value through the
current profit or loss financial assets measured at amortized cost and financial assets measured at fair value through the
other comprehensive income.Financial assets are measured at fair value at initial recognition while the accounts receivable or notes receivable
arising from sales of goods or rendering of services excluding the significant financing composition or the financial
composition for over one year are initially measured at the transaction price.For financial assets measured at fair value through the current profit or loss relevant transaction costs are directly
included in the current profit or loss while the transaction costs relevant to other financial assets are included in the initial
recognition amount.The subsequent measurement of financial assets depends on the classification thereof:
Investment in debt instruments measured at cost
Financial assets simultaneously meet the following conditions are classified as the financial assets measured at
amortized cost: the management model of such financial assets aims at the collection of contract cash flows; according to
the terms in the contract for such financial assets the cash flows generating on the special date are paid at the interest for
the principal and the unpaid principal. Such financial assets are recognized as interest income by the effective rate method
and the gains or losses from the derecognition modification or impairment thereof are in the current profit or loss.Investment in debt instruments measured at fair value through other comprehensive income
If financial assets meet the following conditions at the same time the Group classifies them as financial assets at fair
value through other comprehensive income: the Group’s business model for the management of the financial assets is
aimed at both the collection of contract cash flow and the sale of the financial assets; the contractual terms of the financial
asset stipulate that the cash flow generated at a particular date is only the payment of the principal and interest based on the
outstanding principal amount. The interest income of such financial assets is recognized by the effective interest method. At
derecognition of financial assets the accumulated gains or losses previously included in other comprehensive income are
transferred from the other comprehensive income to the current profit or loss.Investment in equity instruments measured at fair value through the other comprehensive income
The Group irrevocably chooses to designate some non-trading equity instruments as the financial assets measured
at fair value through the other comprehensive income and only include the relevant dividends revenue (except for that
partially recovered as the investment cost) in the current profit or loss and the subsequent changes in fair values in the other
comprehensive income without the provision for impairment. At derecognition of financial assets the accumulated gains
or losses previously included in other comprehensive income are transferred from the other comprehensive income to the
retained earnings.Financial assets measured at fair value through the current profit or loss
The financial assets other than the financial assets measured at amortized cost and the financial assets measured at
fair value through the other comprehensive income are classified as the financial assets measured at fair value through the
other comprehensive income. For such financial assets the subsequent measurement is made at fair value and changes in
fair value are included in the current profit or loss.Classification and measurement of financial liabilities
At the initial recognition the Group’s financial liabilities are classified as: financial liabilities measured at fair value
through the current profit or loss and other financial liabilities. For financial liabilities measured at fair value through the
current profit or loss relevant transaction costs are directly included in the current profit or loss while the transaction costs
relevant to other financial liabilities are included in the initial recognition amount.The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities measured at fair value through the current profit or loss
Financial liabilities measured at fair value through the current profit or loss include the trading financial liabilities (including
the derivative instruments belonging to financial liabilities) and the financial liabilities measured at fair value through the
current profit or loss. The subsequent measurement of the trading financial liabilities (including the derivative instruments
belonging to financial liabilities) is made at fair value and changes in fair value are included in the current profit or loss. For
the financial liabilities measured at fair value through the current profit or loss the subsequent measurement is made at fair
value and the changes in fair value are included in the current profit or loss except that the changes in fair value caused
by the changes in the Group's credit risks are included in the other comprehensive income; if including the changes in fair
value caused by the changes in the Group's credit risks in the other comprehensive income may cause or exacerbate the
accounting mismatch in profit or loss the Group will include all changes in fair value (including the amounts affected by the
changes in the Group’s credit risks) in the current profit or loss.71
Other financial liabilities
The subsequent measurement of such financial liabilities is made at amortized cost by the effective rate method.Impairment of financial instruments
Based on the expected credit losses the Group makes the provision for impairment and recognizes the loss provisions
for the financial assets measured amortized cost and the investment in debt instruments measured at fair value through the
other comprehensive income.For the receivables excluding significant financing component the Group measures the loss provision based on the
amount equivalent to the expected credit loss over the whole duration by the simplified measurement method.Except for the above financial assets subject to the simplified measurement method on each balance sheet date
the Group makes assessment on whether the credit risk in financial assets has had significant increase after the initial
recognition. If the credit risk does not significantly increase after the initial recognition standing at the first level the Group
will measure the loss provision based on the amount of expected credit loss over the next 12 months and calculate the
interest income based on the book balance at the effective interest rate; if the credit risk has significantly increased after
the initial recognition without any credit impairment standing at the second level the Group will measure the loss provision
based on the amount equivalent to the expected credit loss over the whole duration; in case of any credit impairment after
the initial recognition standing at the third level the Group will measure the loss provision based on the amount of expected
credit loss over the whole duration and calculate the interest income based on the amortized cost at the effective interest
rate. For financial instruments only with relatively low credit risk on the balance sheet date the Group assumes that such
credit risk does not significantly increase after the initial recognition.The Group evaluates the expected credit loss of financial instruments individually and by portfolio. After taking the credit
risk characteristics of different customers into account the Group evaluated the expected credit loss on accounts receivable
by the aging portfolio.For the Group’s disclosure of the judgment standards for significant increase of credit risk definition of assets with credit
impairment and assumption of the measurement of expected credit loss see Note X for details.When the Group ceases to expect reasonably the contract cash flows of financial assets which can be recovered in
whole or in part the Group will directly write off the book balance of such financial assets.Financial instrument offset
Financial assets and financial liabilities are presented in the balance sheet at the net amount after mutual offset when
the following conditions are met simultaneously: possess the legal right to offset the recognized amount and such right is
currently executable; intend to settle at net amount or cash such financial assets or liquidate such financial liabilities.Financial guarantee contracts
A financial guarantee contract refers to the contract where the issuer shall pay the specific amount to the contract holder
suffering losses when the specific debtor fails to repay debts according to the financial guarantee clauses. The financial
guarantee contracts are measured at fair value at initial recognition. Financial guarantee contracts other than those the
financial liabilities measured at fair value through the current profit or loss are subsequently measured at the higher between
the amount of expected credit loss reserve determined on the balance sheet date and the balance of the initially recognized
amount deducting the accumulated amortization amount determined in the revenue recognition principle.Derivative financial instruments
The Group carries out the exchange rate risk hedging by using derivative financial instruments such as the forward
exchange contract and the foreign exchange option contract. Derivative financial instruments are initially measured at
their fair values on date of signing relevant derivative transaction contracts and subsequently measured at their fair
values. Derivative financial instrument with positive fair value is recognized as an asset and that with negative fair value is
recognized as a liability.Gains or losses from changes in fair values of derivative instruments are directly included in the current profit or loss
unless they are related to the hedging accounting.Transfer of financial assets
If the Group has transferred nearly all the risks and rewards associated with the ownership of financial assets to the
transferee such financial assets will be de-recognized; if the Group retains nearly all the risks and rewards associated with
the ownership of financial assets such financial assets will continuously recognized.If the Group neither transfers nor retains nearly all the risks and rewards associated with the ownership of the financial
assets the following treatments will be adopted based on different circumstances: if the Group has given up its control
over the financial assets the financial assets will be derecognized and the assets and liabilities arising therefrom will be
recognized; if the Group does not give up its control over the financial assets the financial assets will be recognized to the
extent of its continuing involvement in the transferred financial assets while relevant liabilities are recognized accordingly.11 Notes receivable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable722020
12 Accounts receivable
Determination and accounting treatment of the expected credit loss of accounts receivable
□Applicable √Not applicable
13 Receivables financing
□Applicable √Not applicable
14 Other receivables
Determination and accounting treatment of the expected credit loss of other receivables
□Applicable √Not applicable
15 Inventories
√Applicable □Not applicable
Inventories include the raw materials outsourcing components and parts goods in process stock commodities and
contract performance cost.Inventories are initially measured at the cost. The inventory cost includes the procurement cost processing cost and
other cost. The actual cost of inventory in transit is determined by the weighted average method.Perpetual inventory system is adopted for inventories.On the balance sheet date the inventory is measured at its cost or its net realizable value whichever is lower; if the
cost is higher than the net realizable value the provision for inventory depreciation will be made and included in the current
profit or loss. If the previous factor for the provision for inventory depreciation has been eliminated resulting that the net
realizable value of the inventory is higher than the cost of the same the amount written down will be reversed in the amount
of provision for inventory depreciation originally made and the reversed amount will be included in the current profit or loss.The net realizable value in the routine activities refers to amount of the estimated selling price of inventory minus
the estimated cost to completion estimated selling expense and relevant taxes and surcharges. At the time of making the
provision for inventory depreciation the provision for depreciation of raw materials is made by category and that of goods in
process stock commodities and contract performance cost is made by each single inventory item.Construction contract (only applicable to year 2019)
For large port equipment heavy equipment and steel products as well as construction projects customized for
customers as the commencement dates and the completion dates are usually in different accounting years the Group
accounts for their revenue and costs by the construction contract.(a) If the outcome of a construction contract can be estimated reliably the revenue and cost of such construction
contract will be recognized on the balance sheet date based on the progress of completion by the percentage-of-completion
method. The outcome of a construction contract can be estimated reliably means that the economic benefit relevant to
the contract is likely to flow in the Group and the actually incurred contract cost can be clearly distinguished and reliably
measured; for fixed price contracts the following conditions should be also met: The total contract revenue can be reliably
measured and the progress of completion and the cost to complete the contract can be reliably determined. Total contract
revenue includes the initial cost specified in the contract and the revenue from contract change claim and award. The Group
determines the progress of contract completion by the following ways:
(i) For large port equipment the progress of completion is determined at the percentage of completion corresponding to
the time-point for recognizing the revenue of the construction contract at the end of the period. The Group has determined
the following three revenue recognition time-points:
Time-point 1: The manufacturing of main steel structure has been completed and set upright;
Time-point 2: The product manufacturing installation and preliminary debugging have been completed the factory
qualification certificates for products have been issued the bill of loading has been obtained and the product delivery has
been prepared;
Time-point 3: The products have been delivered to the purchaser upon the purchaser’s inspection and the delivery
certificate issued by the purchaser has been obtained.The Group analyzes construction contracts completed in the previous year by the category of product and determines
the percentage of completion to be recognized at each revenue recognition time-point based on the proportion of the cost at
the each revenue recognition time-point mentioned above in the total actual cost and takes such percentage of completion
as that to be recognized at each revenue recognition time-point in the current period.(ii) For heavy equipment and construction projects the completion of completion is determined based on the proportion
of the contract cost accumulated incurred in the total estimated contract costs. The accumulated incurred contract cost does
not include the relevant contract costs in the future activities.(iii) For steel structure manufacturing the progress of completion is determined based on the proportion of the
accumulatively completed processing tonnage in the total estimated processing tonnage.(b) If the outcome of an individual construction contract cannot be estimated reliably the treatment will be taken
separately in following situations:73
(iv) If the contract cost is recoverable it will be recognized based on the actual contract cost recoverable as the contract
expense in the period when such cost is incurred.(v) If the contract cost is not recoverable it will be recognized as contract expense when it is incurred without contract
revenue recognition.(c) If the total estimated contract cost is more than the total estimated contract revenue the estimated loss will be
immediately recognized as the current profit or loss.(d) For the contract price by installment the settled price is presented and will be reversed based on relevant
accumulated incurred cost and the accumulated recognized gross profit after the settlement of construction contract. On
the balance sheet date the difference between the sum of the accumulated incurred cost and the accumulated recognized
gross profit and the settled price (the former is larger) is presented as the completed but not settled construction payment in
the current assets; in case the latter is larger such difference will be presented as the settled but not completed construction
payment in the current liabilities.16 Contract assets
(1) Recognition method and criteria of contract assets
√Applicable □Not applicable
The Group presents contract assets or liabilities in the balance sheet according to the relationship between the
fulfillment of performance obligations and customer payments. After offsetting the contract assets and contract liabilities
under the same contract the Group presents them in net amount.Contract assets
Contract assets refer to the right to receive consideration for goods or services transferred to customers and the right
depends on factors other than the passage of time.For details of the Group’s determination and accounting treatment method of expected credit loss of contract assets
please refer to Note V.
(2) Determination and accounting treatment of the expected credit loss of contract assets
□Applicable √Not applicable
17 Assets held for sale
□Applicable √Not applicable
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
21 Long-term equity investments
√Applicable □Not applicable
Long-term equity investments include the equity investments in subsidiaries joint ventures and associates.Long-term equity investments are initially measured at the initial investment cost. The initial investment cost of a long-
term equity investment acquired through the business combination under common control is recognized at book value of
owners' equity acquired from the combinee on the combination date in the consolidated financial statements of the ultimate
controller; the difference between the initial investment cost and the book value of the combination consideration is used to
adjust the capital reserves (if the capital reserves are insufficient to offset the retained earnings will be offset); for the other
comprehensive income before the combination date at the disposal of such investment the accounting treatment identical
to that for the direct treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognized
on account of the change in other shareholders’ equity of the investee other than net profit or loss other comprehensive
income and profit distribution is transferred in the current profit or loss at the disposal of such investment; in which after such
disposal if such investment is still the long-term equity investment it will be carried forward in proportion; if it is converted
into the financial instrument it will be carried forward in full.The initial investment cost of a long-term equity investment acquired through business combination not under common
control is recognized at the combination cost (if the business combination not under common control is realized through742020
several transactions by step the sum of the book value of the equity investment of the acquiree held before the acquisition
date and the cost of investment newly added on the acquisition date is recognized as the initial investment cost) and the
combination cost includes the asset paid by the acquiree liability incurred or borne by the acquiree and the fair values of
issued equity securities; for the other comprehensive income held before the acquisition date and recognized due to the
accounting under equity method at the disposal of such investment the accounting treatment identical to that for the direct
treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognized on account of the
change in other shareholders’ equity of the investee other than net profit or loss other comprehensive income and profit
distribution is transferred in the current profit or loss at the disposal of such investment; in which after such disposal if such
investment is still the long-term equity investment it will be carried forward in proportion; if it is converted into the financial
instrument it will be carried forward in full. The accumulated changes in fair values of the equity investments held before the
acquisition date which was included in the other comprehensive income as the financial instruments are fully transferred
in the retained earnings (from 2019) or the current profit or loss (before 2019) on the accounting at cost. For long-term
equity investments acquired not through business combination their initial investment costs are determined by the following
ways: if the long-term equity investment is acquired through cash payment the initial investment cost will be the sum of the
acquisition price actually paid and the costs taxes and other necessary costs which are directly relevant to the long-term
equity investment; if the long-term equity investment is acquired by issuing equity securities the initial investment cost will be
the fair value of the equity securities issued.The long-term equity investments where the Company could control the investee shall be accounted in individual
financial statements of the Company under the cost method. Control means the power owned over the investee and enjoys
the variable return through participating in activities related to the investee and has the ability to affect its return by using the
power over the investee.Under the cost method long-term equity investments are valuated at initial investment cost. The Company shall
increase or recover the investment to adjust the cost of long-term equity investments. Cash dividends or profits declared and
distributed by the investee should be recognized as investment income in the current period.If the Group has joint control over or significant influence on the investees long-term equity investments are accounted
for with the equity method. Joint control refers to the control shared over an arrangement in accordance with the relevant
stipulations and the decision-making of related activities of the arrangement should not be made before the party sharing
the control right agrees the same. Significant influence refers to the power to participate in making decisions on the financial
and operating policies of the investee but not the power to control or jointly control the formulation of such policies with
other parties.For long-term equity investments measured under the equity method if the initial investment costs are higher than the
investor's attributable share of the fair value of the investee's identifiable net assets the initial costs of the long-term equity
investments shall be recognized; if the initial investment costs are lower than the investor's attributable share of the fair value
of the investee's identifiable net assets the difference shall be recognized in current profit and loss and at the same time the
adjustment will be made to the initial costs of the long-term equity investments.Where the equity method is adopted after the long-equity investments are acquired the Company shall according to
the shares of net profit and loss and other comprehensive income realized by the investee which the Company shall enjoy
or bear recognize the profit and loss on the investments and other comprehensive income and adjust the book value of the
long-term equity investments. When recognizing the share of net profit or loss of the investee that the Group shall enjoy
based on fair value of various identifiable assets and others of the investee on acquisition and according to accounting
policies and accounting periods of the Group the Group shall write off the part of incomes from internal transactions with
associates and joint ventures which are attributable to the investor according to the shareholding ratio (but the loss from
internal transactions is the asset impairment loss its total amount shall be recognized) and then recognize the profit and
loss on investments on such basis except those assets investments or sale constitute business. The Group shall in the
light of the profits or cash dividends that the investee declares to distribute calculate the part it should share and reduce the
book value of the long-term equity investment correspondingly. Recognition of the net loss in the investee shall be within
the limit that the book value of long-term equity investments and other long-term interests which substantially form the net
investment in the investee are reduced to zero unless the Group is obliged to bear extraneous losses; For other changes
in shareholder's equity of the investee excluding net losses or profits other comprehensive income or profit distribution the
book value of long-term equity investments will be adjusted and included in shareholder's equity.For disposal of long-term equity investments the difference between the book value and the actual price shall be
included in the current investment income. For long-term equity investments recognized under equity method when the
equity method is no longer adopted due to the disposal accounting treatment should be made for other comprehensive
income previously recognized under the equity method by using the same basis for the investee to directly dispose the
relevant assets or liabilities. Shareholder's equity recognized from the investee's changes in other shareholder’s equity
other than net profit or loss other comprehensive income and profit distribution should all transferred to the current profits
or losses. If the equity method is still adopted the relevant other comprehensive income accounted by the original equity
method shall be accounted on the same basis as the invested entity's direct disposal of relevant assets or liabilities and shall
be transferred to the current profit or loss in proportion. The shareholders’ equity recognized due to changes in shareholders’
equity of the investee other than net profit or loss other comprehensive income and profit distribution shall be transferred to
the current profit or loss according to corresponding proportion.75
The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until the
loss of control. If the above-mentioned transactions are part of a package transaction the transactions are treated as a
transaction dealing with the equity investment of the subsidiary and losing control. However before the loss of control the
difference between the disposal price and the book value of the long-term equity investment corresponding to the disposed
equity is recognized as other comprehensive income in individual financial statements and transferred to the current profit or
loss when the control is lost. If the above-mentioned transactions are not part of a package transaction accounting treatment
shall be carried out for each transaction separately. If the control is lost in the individual financial statements for the
remaining equity if the remaining equity after disposal can jointly control or has a significant impact on the original subsidiary
it shall be recognized as long-term equity investment and the accounting treatment shall be carried out according to relevant
provisions on the conversion of cost method into equity method; otherwise it shall be recognized as a financial instrument
and the difference between the fair value and the book value on the date of loss of control is included in the current profit or
loss.22 Investment properties
Investment properties refer to properties that are held for the purposes of earning rental income capital appreciation or
some combination thereof including land use rights and buildings that have been leased out.The investment property shall be initially measured at cost. Subsequent expenses related to investment properties if
the economic benefits associated are likely to flow in and its cost can be measured reliably should be recorded in the cost of
investment property. Otherwise such subsequent expenses should be included in current profits or losses upon occurrence.The subsequent measurement of an investment property shall be conducted by the Group under the cost method and
the land use right and buildings shall be amortized and depreciated according to the expected useful life and net residual
rate of the investment property. The expected useful lives net residual value rate and annual depreciation (amortization) rate
of the investment properties are as follows:
Estimated useful lives Estimated net residual value rate Annual depreciation (amortization) rate
Buildings 30 years 0% 3.3%
Determined according to the estimated
Land use right Land useful lives 0% net residual value and useful life for
the land useful lives
The Group shall review estimated useful lives estimated net residual value and depreciation (amortization) methods of
the investment properties at the end of each year and shall make adjustment when necessary.When an investment property is changed for self-use upon change the investment property shall be converted into
fixed assets or intangible assets. When the self-use property is changed to earn rentals or for capital appreciation upon
change fixed assets or intangible assets shall be converted into investment properties. When there is a conversion the book
value before the conversion shall be regarded as the book value after the conversion.23 Fixed assets
(1) Recognition criteria
√Applicable □Not applicable
Fixed assets will only be recognized when the economic benefits relating to the fixed assets may flow into the Group
and the costs of the fixed assets can be measured reliably. If the subsequent disbursements relevant to a fixed asset meet
the recognition conditions they shall be recorded in the cost of fixed asset and the book value of the replaced part shall be
derecognized; otherwise they shall be recorded in the current profits and losses.Fixed assets are initially measured at cost. The costs of externally acquired fixed assets comprise their purchase prices
related taxes and surcharges and any attributable expenditure incurred to prepare the asset for its intended use.
(2) Depreciation method
Except for the fixed assets form by using withdrawn safe production costs the provisions for the depreciation of fixed
assets are made by straight-line method and the useful lives expected net salvage value and annual depreciation rates of
various fixed assets are as follows:
√Applicable □Not applicable
Category Depreciation method Useful lives
Estimated net residual Annual
value rate depreciation rate
Buildings and constructions Straight-line method 20-40 years 0% 2.5%-5%
Mechanical equipment Straight-line method 3-20 years 0% 5%-33.3%
Office and electronic equipment Straight-line method 3-5 years 0% 20%-33.3%762020
Category Depreciation Useful lives Estimated net residual Annual method value rate depreciation rate
Transportation facilities (excluding ship) Straight-line method 5 years 0% 20%
Ship Straight-line method 10-30 years 5%/10% 3%-9.5%
(3) Identification basis valuation and depreciation method of fixed assets under financing lease
√Applicable □Not applicable
The fixed assets acquired under financing leases adopt the same depreciation policies for the provision for the
depreciation of leased assets as those of its own fixed assets. Where it can be reasonably certain that the Company will
obtain ownership of the leased asset at the expiry of the lease term the leased assets are depreciated over the useful life;
where it cannot be reasonably certain that the Company can obtain ownership of the leased asset at the end of the lease
term the leased assets are depreciated at the shorter of the lease term and the use life of the leased assets.The Group shall review useful lives estimated net residual value and depreciation methods of the fixed assets at the
end of each year and shall make adjustment when necessary.24 Construction in progress
√Applicable □Not applicable
The Group recognizes the cost of the construction in progress at the actually incurred expenditures including all types
of necessary expenditures incurred during the construction period the capitalized borrowing costs incurred prior to the time
when the construction is brought to the expected conditions for use and other relevant costs.The construction in progress is converted into fixed assets after it reaches the expected conditions for use.25 Borrowing costs
√Applicable □Not applicable
Borrowing costs refer to the interest and other relevant costs of the Company due to borrowings including the interest of
borrowings the amortization of discount or premium auxiliary expenses exchange differences incurred by foreign currency
borrowings etc.The Group capitalizes the borrowing costs of acquisition or construction or production which may directly belong to
assets that are eligible for capitalization; and other borrowing costs are included in the current profit or loss. Assets eligible
for capitalization refer to fixed assets investment property inventories and other assets which may reach their intended use
or sale status only after long-time acquisition and construction or production activities.The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred;
(2) The borrowing costs have already incurred; and
(3) Purchase construction or manufacturing activities that are necessary to prepare the asset for its intended use or
sale have already started;
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for
capitalization have reached the working condition for their intended use or sale. The borrowing costs incurred thereafter shall
be included in the current profit or loss.During the period of capitalization the capitalized amount on interest of each accounting period shall be determined in
accordance with the following provisions:
(1) The interest of special borrowings to be capitalized should be determined according to the actually incurred interest
expenses in the current period less the interest income on deposits or the investment income;
(2) The interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of
asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the weighted average
rate of used general borrowings.If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupted
due to the matters other than necessary procedures for such assets to reach the working conditions for its intended use or
sale and such circumstance lasts for more than three months the capitalization of borrowing costs should be suspended.Borrowing costs incurred during the interruption are recognized as the current profit or loss and continue to be capitalized
until the acquisition construction or production of the asset restarts.26 Biological assets
□Applicable √Not applicable
27 Oil and gas assets
□Applicable √Not applicable77
28 Right-of-use assets
□Applicable √Not applicable
29 Intangible assets
(1) Valuation method service life and impairment test
√Applicable □Not applicable
Intangible assets will be recognized only when relevant economic benefits may well flow into the Group and the costs
of intangible assets can be measured reliably and initially measured at costs. However if the fair value of the intangible
assets acquired in the business combination not under common control can be reliably measured it should be recognized
as intangible assets and measured at fair value separately. When the Company reconstructs its corporate system for the
intangible assets invested by the shareholders of the state-owned shares the evaluation value confirmed by the state-owned
assets management department shall be served as the book value.The useful life of an intangible asset is determined based on the period during which it can bring economic benefits to
the Group. If the said period cannot be predicted it will be recognized as an intangible asset with indefinite useful life.The useful lives of all kinds of intangible assets are determined as follows:
Useful life
Land use right Land useful lives
Software use fees 5 years
Proprietary technology 10 years
The land use rights acquired by the Group are usually accounted as intangible assets. For the plants and other buildings
developed and constructed by the Company relevant land use rights and constructions shall be respectively accounted as
intangible assets and fixed assets. For externally purchased land and buildings the related payments are distributed in the
land use right and buildings; those difficult to be distributed shall be all handled as fixed assets.For the intangible assets with limited useful life their amount shall be amortized at the straight-line method over its
useful life. The Group will reexamine the useful lives and amortization method of intangible assets with limited useful lives
and make adjustments when necessary at the end of each year.
(2) Accounting policy of internal R & D expenditures
√Applicable □Not applicable
The Group's expenditures for its internal research and development projects are classified into research expenditures
and development expenditures. The expenditures in research phase will be included in the current profit or loss on
occurrence. The development expenditures will be capitalized only when all of the following conditions are satisfied
simultaneously: It is feasible technically to finish intangible assets for use or sale; It is intended to finish and use or sell the
intangible assets; The usefulness of methods for intangible assets to generate economic benefits shall be proved including
being able to prove that there is a potential market for the products manufactured by applying the intangible assets or there
is a potential market for the intangible assets itself or the intangible assets will be used internally; It is able to finish the
development of the intangible assets and able to use or sell the intangible assets with the support of sufficient technologies
financial resources and other resources; and the expenditures attributable to the intangible asset during its development
phase can be measured reliably. Development expenditures that do not meet the above conditions are included in the
current profit or loss on occurrence.30 Asset impairment
√Applicable □Not applicable
The Group recognizes the asset impairment under the following methods except for inventories contract assets and
assets related to contract cost deferred income tax and financial assets:
The Group shall on the balance sheet date make a judgment on whether there is any indication that the assets may
impair. If such indication does exist the Group shall estimate the recoverable amount and carry out an impairment test.Impairment tests for goodwill caused by business combination shall be conducted at the end of every year whether they
have signs of impairment or not. Impairment tests for intangible assets not reaching usable condition shall be conducted
every year.The recoverable amounts of assets are the higher of their fair values less costs to sell and the present values of the
future cash flows expected to be derived from the assets. The Group shall on the basis of single item assets estimate the
recoverable amount. Where it is difficult to do so it shall determine the recoverable amount of the group assets on the basis
of the asset group to which the asset belongs. The recognition of an asset group shall base on whether the main cash inflow
generated from the asset group is independent of those generated from other assets or other group assets.Where the recoverable amount of an asset or an asset group is lower than its book value the book value of the asset or
asset group shall be written down to their recoverable amounts. The write-downs are recorded into the current profit or loss
and the provision for asset impairment are made accordingly at the same time.782020
When the Company makes an impairment test of goodwill it shall as of the purchasing day apportion the book value of
the goodwill formed by business combination to the relevant asset groups by a reasonable method. Where it is difficult to do
so it shall be apportioned to the relevant portfolio of asset groups .The related asset group or combination of asset groups
shall be the asset group or combination of asset groups that can benefit from the synergy effect of business combination
and shall be smaller than the reporting segments as determined by the Group.When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill if any
indication shows that the asset groups or combinations of asset groups related to the goodwill may be impaired the Group
shall first conduct an impairment test on the asset groups or combinations of asset groups not containing goodwill calculate
the recoverable amount and recognize the corresponding impairment loss. Then the Group shall conduct an impairment test
on the asset groups or asset groups portfolio containing goodwill and compare it book value and recoverable amount: if the
recoverable amount is lower than book value the amount of impairment losses should be firstly used to deduct book value
of goodwill allocated to the asset group or the asset group portfolio and then deduct book value of other assets according to
the proportion of the book value of other assets other than the goodwill in the asset group or the asset group portfolio.Once the loss of assets impairment is recognized it is not allowed to be reversed even if the value can be recovered in
subsequent period.31 Long-term deferred expenses
√Applicable □Not applicable
Long-term deferred expenses shall be amortized at the straight-line method and the amortization period is set out as
follows:
Amortization period
Improvement of fixed assets acquired under the operating lease Expected beneficial period
32 Contract liabilities
(1) Recognition method of contract liabilities
√Applicable □Not applicable
The Group presents contract assets or liabilities in the balance sheet according to the relationship between the
performance of contract obligations and customer payments. After offsetting the contract assets and contract liabilities under
the same contract the Group presents them in net amount.Contract liabilities
Contract liability refers to the obligation to transfer goods or services to customers for the consideration received or
receivable from customers such as the money received by enterprises before transferring the promised goods or services.33 Employee compensation
Employee compensations refer to multiform remuneration or compensation offered of the Group in order to get services
provided by its employees or sever the labor relation. Employee compensation mainly includes short-term employee
compensation post-employment benefits dismissal benefits and other long-term employee benefits. The welfare provided
by the Company to employees' spouses children dependents family dependants of the deceased employee and other
beneficial owners also belong to employee compensation.Short-term compensation
(1) Accounting treatment of short-term compensation
√Applicable □Not applicable
During the accounting period of an employee' providing services the short-term compensation actually incurred is
recognized as liabilities and includes them in the current profit or loss or the related asset costs.
(2) Accounting treatment of post-employment benefits
√Applicable □Not applicable
The employees of the Group participated in the endowment insurance and unemployment insurance managed by the
local government and also participated in the enterprise annuity and the corresponding expenses were included in the
relevant asset costs or the current profit or loss when incurred.
(3) Accounting treatment of termination benefits
□Applicable √Not applicable
(4) Accounting treatment of other long-term employee benefits
□Applicable √Not applicable79
34 Lease liabilities
□Applicable √Not applicable
35 Estimated liabilities
√Applicable □Not applicable
Except for contingent consideration and contingent liabilities assumed in business combination not under the same
control when the obligations related to contingencies meet the following conditions the Group recognizes them as estimated
liabilities:
(1) This obligation is a present obligation of the Group;
(2) The performance of such obligation is likely to result in outflow of economic benefits from the Group;
(3) The amount of the obligation can be measured reliably.
The estimated liabilities are initially measured as the best estimate of expenses required for the performance of relevant
present obligations by considering comprehensively the risks with respect to contingencies uncertainties and the time value
of money. On each balance sheet date the Group shall review the book value of estimated liabilities. The Company shall
make corresponding adjustments to reflect the current best estimate if there is any conclusive evidence indicating that such
book value cannot reflect the current best estimate.36 Share-based payment
□Applicable √Not applicable
37 Preferred shares perpetual bonds and other financial instruments
√Applicable □Not applicable
After the maturity of the perpetual bonds issued by the Group the Group has the right to extend them for an unlimited
number of times. For the coupon interest of the perpetual bonds the Group has the right to postpone the payment and the
group has no contractual obligation to pay cash or other financial assets. They are classified as equity instrument.38 Revenue
(1) Accounting policies for revenue recognition and measurement
√Applicable □Not applicable
Revenue from contracts with customers (applicable from January 1 2020)
The Group recognizes revenue when it fulfills the performance obligation in the contract that is when the customer
obtains control over the relevant goods or services. The acquisition of control of relevant goods or services means to be able
to dominate the use of the goods or the rendering of the services and obtain almost all the economic benefits from them.Manufacturing contracts on large-sized port equipment heavy equipment and steel structure products
The manufacturing contracts on large-sized port equipment heavy equipment and steel structure products between
the Group and customers usually only include the performance obligations of transferring large-sized port machinery and
equipment heavy equipment and steel structure products customized for customers.The large-sized port equipment heavy equipment and steel structure products provided by the Group during the
performance of the contract are irreplaceable however most of the large-sized port equipment heavy equipment sales
contracts and the manufacturing contracts of some steel structure products do not stipulate that the Group has the right
to collect money for the performance part that has been completed so far in the whole contract period. This part of the
contract does not meet the performance obligation conditions within a certain period of time and the Group takes it as
the performance obligation at a certain point of time. The Group generally recognizes the revenue at the time point of
control transfer of relevant port machinery and equipment heavy equipment and steel structure products on the basis of
comprehensive consideration of the following factors: the current right to receive payment of goods the transfer of main risks
and rewards in the ownership of goods the transfer of legal ownership of goods the transfer of physical assets of goods
and the acceptance of the goods by customers.In addition based on the terms of sales contracts on individual large-sized port equipment and heavy equipment and
the manufacturing contracts on some steel structure products the Group has the right to collect money for the performance
part that has been completed so far during the whole contract period. The Group takes it as the performance obligation to
perform in a certain period of time and recognizes the revenue according to the performance progress. Based on input
method the Group determines the corresponding performance progress of large-sized port equipment and heavy equipment
contracts according to the proportion of the cost incurred in the total estimated cost. By output method the Group determines
the performance progress of the steel structure manufacturing contract according to the proportion of the accumulated
processing tons to the estimated total processing tons.Contracts on rendering of shipping and lifting services
The service contracts between the Group and its customers mainly involve special shipping services and hoisting
services. The revenue of special shipping services rendered by the Group is recognized by time period method and the
progress of performance obligations is determined according to the proportion of the number of days transported in the total802020
estimated days of transportation. The revenue of shipping service shall be recognized when the service is completed.Material sales contract
The material sales contract between the Group and customers usually only includes the performance obligation of
transferring spare parts and other materials. The Group generally recognizes the revenue at the time of control transfer of
relevant spare parts and other materials on the basis of comprehensive consideration of the following factors: the current
right to receive payment of goods the transfer of main risks and rewards in the ownership of goods the transfer of legal
ownership of goods the transfer of physical assets of goods and the acceptance of the goods by customers.Rendering of building services
The building service contract between the Group and customers usually includes the performance obligation of
infrastructure construction. As the customer can control the assets under construction during the performance by the Group
the Group takes them as the performance obligations within a certain period of time and recognizes the revenue according
to the performance progress except that the performance progress cannot be reasonably determined. By input method
the Group determines the performance progress of the services based on the cost incurred. If the performance progress
cannot be reasonably determined and the cost incurred by the Group is expected to be compensated the revenue shall be
recognized according to the cost amount incurred until the performance progress can be reasonably determined.Build and transfer contract (BT contract)
Activities under the BT contracts usually include build and transfer. With respect to the building services provided by the
Group during the building period the revenue of construction service contracts is recognized in accordance with the above
accounting policies. The construction contract revenue is measured at the fair value of the consideration receivable and the
“long-term receivables” are recognized and measured at the same time by effective interest rate method and the amortized
cost and offset upon receipt of payment of the project owner.Franchise contract (“BOT” contract)
The activities under BOT contract usually include build operate and transfer. At the build stage the contract revenue
of construction services shall be recognized in accordance with the above accounting policies for providing build service
contracts. The revenue of construction contract is measured at the fair value of the consideration received or receivable and
the financial assets or intangible assets are recognized while the revenue is recognized as follows:
(1) Within a certain period after the completion of the infrastructure as stipulated in the contract if the Group can
unconditionally collect a certain amount of monetary funds or other financial assets from the contract awarding party the
financial assets are recognized at the same time as revenue;
(2) According to the contract the Group has the right to collect fees from the service recipients within a certain period of
operation after the completion of the relevant infrastructure. However if the amount of fees is uncertain the right does not
constitute an unconditional right to receive cash the Group recognizes the intangible assets while recognizing the revenue
and amortizes it by traffic flow method or straight-line method in the period from the date of completion acceptance of the
project to the expiration of operation period and its extension period or the termination of franchise.If the Group does not provide actual construction services but contracts infrastructure construction to other parties the
revenue from construction services will not be recognized; they are respectively recognized as financial assets or intangible
assets according to the project price paid in the construction process as well as the contract provisions.In the operation stage when services are provided recognize the corresponding revenue; Daily maintenance or
repair expenses incurred shall be recognized as current expenses. Daily maintenance or repair expenses incurred shall be
recognized as current expenses.According to the provisions of the contract in order to maintain a certain service capacity of the relevant infrastructure
or maintain a certain state of use before it is handed over to the contract awarding party the current obligations undertaken
by the Group in the estimated expenses are recognized as an estimated liability.Variable consideration
If there is variable consideration in the contract the Group shall determine the best estimate of variable consideration
according to the expected value or the most likely amount but the transaction price including variable consideration shall
not exceed the amount that the accumulated recognized revenue is highly unlikely to have a significant reversal when the
relevant uncertainty is eliminated. On each balance sheet date the Group re-estimates the amount of variable consideration
to be included in the transaction price.Warranty obligations
According to the contract and legal provisions the Group provides quality assurance for the goods sold or the assets
built. For the guarantee type quality assurance that the goods sold to customers meet the established standards the
Company shall perform accounting treatment in accordance with Note VII. For the service quality assurance for a separate
service provided in addition to guaranteeing that the goods sold meet the established standards the Group shall take it as
a single performance obligation allocate part of the transaction price to the service quality assurance according to relative
proportion of the single selling price of the goods and service quality assurance and recognize the revenue when the
customer acquires service control right. In assessing whether quality assurance provides a separate service in addition to
ensuring that the goods sold meet established standards the Group shall consider whether the quality assurance is legal
requirement quality assurance period and the nature of the Group’s commitment to perform the tasks.Principal responsible person/agent
The Group determines whether it is the principal responsible person or the agent in the transaction according to whether81
it has the right to control the goods or services before transferring them to customers. In case the Group can control the
goods and other products before transferring them to customers the Group shall be the principal responsible person and
recognize the revenue according to the total consideration received or receivable. Otherwise the Group shall be the agent
and recognize the revenue according to the amount of commission fees or handling charges that it is expected to be entitled
to receive and the amount shall be recognized according to the net amount of the total consideration received or receivable
after deducting the price payable to other relevant parties or according to the fixed commission amount or proportion.Contract changes
When there are changes in the sales contract or construction contract between the Group and the customer:
(1) If the contract changes increase the clearly distinguishable goods or construction services and contract price and
the added contract price reflects the separate price of the new goods or construction services the Group will take such
contract change as a separate contract for accounting;
(2) If the contract change does not fall under the above (1) and there is a clear distinction between the transferred
goods or construction services and the non-transferred goods or construction services on the date of contract change the
Group will regard it as the termination of the original contract in the meanwhile the non-performance part of the original
contract and the changes will be incorporated into a new contract for accounting treatment;
(3) If the contract change does not fall under the above (1) and there is no clear distinction between the transferred
goods or construction services and the non-transferred goods or construction services on the date of contract change the
Group will take the changes as an integral part of the original contract for accounting treatment. As for the impact on the
recognized revenue the current revenue shall be adjusted on the date of contract change.
(2) Differences in revenue recognition accounting policies caused by different business models of similar businesses
□Applicable √Not applicable
39 Contract cost
√Applicable □Not applicable
The Group’s assets related to contract cost include contract performance cost and contract acquisition cost. According
to the liquidity they are presented in inventories other current assets and other non-current assets respectively.If the incremental cost incurred by the Group to get the contract is expected to be recovered it shall be recognized as
an asset as the contract acquisition cost unless the amortization period of the asset does not exceed one year.The cost incurred by the Group in performing the contract which is not applicable to the specification scope of
inventories fixed assets or intangible assets and meets the following conditions simultaneously shall be recognized as an
asset as the contract performance cost:
(1) The cost is directly related to a current or expected contract including direct labor direct materials manufacturing
expenses (or similar expenses) costs clearly borne by the customer and other costs incurred solely as a result of the
contract;
(2) The cost increases the enterprise’s resources for fulfilling its performance obligations in the future;
(3) The cost is expected to be recovered.
The Group’s assets related to contract cost are amortized on the same basis as the recognition of income related to the
assets and are included in the current profit or loss.If the book value of the assets related to contract cost is higher than the difference between the following two items the
Group will make provision for impairment of the excess part and recognize it as the loss of asset impairment:
(1) The remaining consideration expected to be obtained by the enterprise due to the transfer of goods or services
related to the assets;
(2) The cost expected to be incurred for the transfer of relevant goods or services
If the factors of impairment in the previous period change later so that the difference between (1) and (2) is higher than
the book value of the asset the original provision for impairment of the asset shall be reversed and included in the current
profit or loss but the book value of the asset after reversal shall not exceed the book value of the asset on the reversal date
without provision for impairment.Revenue (applicable to 2019)
Revenue shall be recognized when related benefits are likely to flow into the Group the amount can be reliably
calculated and the following conditions are met synchronously.(a) Revenue from sales of large-scale port equipment ocean heavy equipment product of steel structure and
construction project is recognized by the percentage-of-completion method. Please refer to Note III. 10.(b) Revenue from ship transportation is recognized at the completion of the voyage.(c) Income is recognized at the time of delivery for the sale of spare goods or parts and other materials.(d) The interest income is recognized based on the time and effective interest rate for others to use the monetary funds
of the Group.(e) The revenue from operating lease is recognized in each period under the straight-line method during the lease term.(f) Activities under the construction and transfer of contracts usually include construction and transfer. With respect to
the construction projects for which the Group is responsible during the construction period in accordance with principals of
the construction contract when the outcome can be reliably estimated the construction contract revenue is measured at the822020
fair value of the consideration receivable with long-term receivables recognized at the same time and offset upon receipt of
payment of the project owner.40 Government subsidies
√Applicable □Not applicable
Government subsidies shall be recognized only if the Company is able to comply with the conditions for the government
subsidies and is likely to receive the government subsidies. If a government subsidy is a monetary asset it shall be
measured at the amount received or receivable. If a government subsidy is a non-monetary asset it shall be measured at its
fair value; and if its fair value cannot be obtained in a reliable way it shall be measured at a nominal amount.If the government subsidies shall be used for the construction or the generation in otherwise of the long-term assets as
required by the government documents they are the assets-related government subsidies; If government documents have
no relevant provisions and such government subsidies are based on the condition of the construction or the generation in
otherwise of the long-term assets judged on the basis of basic conditions required for obtaining such government subsidies
they shall be deemed as the assets-related government subsidies other government subsidies in addition to the said ones
shall be deemed as the income-related government subsidies.Income-related government subsidies which are used to compensate for relevant costs or losses in subsequent periods
will be recognized as deferred income and will be included in the current profit or loss or be used to write off relevant costs
in the period when relevant costs or losses are recognized.If assets-related government subsidies are recognized as deferred income they shall be included in profit or loss
by stages by a reasonable and systematic method within the useful lives of relevant assets. (However the government
subsidies measured at nominal amounts are directly included in the current profit or loss); if the relevant assets are sold
transferred scrapped or damaged before the end of their useful lives the undistributed balance of relevant deferred income
is transferred to the profit or loss from the current period of asset disposal.41 Deferred income tax assets/deferred income tax liabilities
√Applicable □Not applicable
Income tax includes the income tax of the current period and deferred income tax. Except that the adjusted goodwill
arising from business combination or the deferred income tax related to transactions or events directly recognized in
shareholder’s equity shall be included in shareholder’s equity other current income tax and deferred income tax shall be
included in current profit and loss as income tax expenses.The current income tax liabilities or assets incurred in the current period or prior periods shall be measured by the Group
in light of the expected payable or refundable amount of income taxes according to the tax law.Deferred income tax is accrued under the balance sheet liability method by the Group based on the temporary difference
between book value of assets and liabilities on the balance sheet date and tax base as well as the balance between the
book value of items which have not been recognized as assets or liabilities but the tax base can be determined according to
the tax law and the tax base.Taxable temporary differences are recognized as deferred income tax liabilities except that:
(1) Taxable temporary differences are generated in the following transactions: the initial recognition of goodwill or the
initial recognition of assets or liabilities arising from transactions with the following characteristics: the transaction is not
a business combination and will not affect accosting profits nor affect the taxable income or deductible losses when the
transaction occurs.
(2) For taxable temporary differences related to the investments in subsidiaries joint ventures and associates the time
for the reversal of the taxable temporary differences can be controlled and the taxable temporary differences are likely not to
be reversed in the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried forward to subsequent
periods deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probable to be
available against the deductible temporary differences deductible losses and tax credits unless the deductible temporary
differences arise from the following transactions:
(1) The deductible temporary difference is generated in the following transaction: the transaction is not a business
combination and it will affect neither accounting profits nor the taxable income (or deductible losses) when occurred.
(2) For the deductible temporary differences arising from investments in subsidiaries associates and joint ventures
the deferred income tax assets will be accordingly recognized when meeting the following conditions at the same time:
the temporary differences may be reversed in the foreseeable future and they can be used to offset the taxable income of
deductible temporary differences in the future.On the balance sheet date the Company shall measure deferred income tax assets and deferred income tax liabilities
at the applicable tax rate during the period for expected recovery of assets or settlement of liabilities and reflect the impacts
of the income tax by means of expected recovery of assets or settlement of liabilities on the balance sheet date.On the balance sheet date the Group reviews the book value of deferred income-tax assets. If it is unlikely to obtain
sufficient taxable income to offset the benefit of the deferred income-tax assets the book value of the deferred income-tax
assets will be written down. On the balance sheet date the Group re-evaluates unrecognized deferred income tax assets83
and deferred income tax assets are recognized to the extent that it is likely to obtain sufficient taxable income for all or part
of the deferred income tax assets to be reversed.Deferred income tax assets and deferred income tax liabilities meeting the following conditions simultaneously will be
presented by net amount after offset: when the Company has the statutory right to balance current income tax assets and
current income tax liabilities with net amounts and deferred income tax assets and deferred income tax liabilities are related
to the income tax which are imposed on the same taxpayer by the same tax collection authority or on different taxpayers
but in each important future period in connection with the reversal of deferred income tax assets and liabilities the involved
taxpayer intends to settle the current income tax assets and liabilities on a net amount basis or obtain assets at the time of
discharging liabilities.42 Lease
(1) Accounting treatment methods of operating lease
√Applicable □Not applicable
Lease under which all the risks and rewards related to the ownership of assets are materially transferred is recognized
as financing lease with the rest as operating lease.As the leasee of operating lease
Rental payment for operating lease in each stage during the rental period should be included into related asset costs or
the current profit or loss by the straight-line method;
As a lessor of operating lease
Rental income from the operating lease in each stage during the lease term should be recognized as the current profit
or loss by the straight-line method.
(2) Accounting treatment methods of finance lease
√Applicable □Not applicable
As the lessee of finance lease
At the commencement of the lease term assets acquired under finance lease shall be recorded at the lower of their fair
values and the present values of the minimum lease payments and the Company shall recognize the book value of long-
term payables at the minimum lease payments and shall record the differences between book value of the leased assets
and the long-term payables as unrecognized finance charges which are amortized at the effective interest method in each
stage during the lease term. The contingent rental is included in the current profits or losses when actually occurring.Leaseback
Leaseback for financing purposes will be treated as a whole which is accounted by mortgage loan on the condition that
asset sale is related to lease transaction and can be repurchased when the lease term expires that is to say the accounting
treatment shall be conducted as per mortgage loan.
(3) Determination and accounting treatment methods of lease under the new lease standard
□Applicable √Not applicable
43 Other accounting policies and accounting estimates
√Applicable □Not applicable
1.Profit distribution
The Company's cash dividends are recognized as liabilities after approval at the general meeting.2.Work safety expenses
The Company withdraws the work safety expenses according to provisions includes them in the cost of related products
or the current profit or loss and includes them in special reserves at the same time. The costs are handled separately
depending on whether they form fixed assets: when withdrawn work safety expenses are used within the prescribed
range and belong to expenses such costs shall be directly deducted from special reserves; where a fixed asset is formed
the expenses incurred through collection are recognized as the fixed asset when it is ready for its intended use and the
equivalent special reserve is written off and the equivalent accumulated depreciation is confirmed.3.Fair value measurement
The Group measures the derivative financial instruments and equity instrument investment at fair value on each
balance sheet date. Fair value is the price received from sales of an asset or paid for transfer of a liability by a market
participant in an orderly transaction on the measurement date. The Group measures the relevant assets or liabilities at
fair value assuming that the sale of assets or transfer of liabilities is orderly carried out in the main market of the relevant
assets or liabilities. Where there is no main market the Group should assume that the transaction is carried out in the most
advantageous market related to the assets or liabilities. The main market (or the most advantageous market) is the trading
market that can be entered by the Company on the measurement date. The Group adopts the assumption used for realizing
its utmost economic benefit when the market participants price the asset or liability.842020
When the Company measures non-financial assets at fair value it should consider a market participant’s ability to
generate economic benefit by using the asset or by selling it to another market participant who will use the asset in its
highest and best use.When the Group uses the valuation techniques it has considered the valuation techniques that are applicable in the
current situation and are supported by enough available data and other information. The Company gives priority to the
observable inputs when using valuation techniques and those unobservable inputs are used only under the circumstance
when it is impossible or unobservable inputs to obtain relevant observable inputs.For assets and liabilities measured at or disclosed by their fair value in the financial statements the level of the
measurement result of fair value shall subject to the lowest level which the input having great significance to the entire
measurement of fair value belongs to: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identical assets
or liabilities available on the measurement date; Level 2 inputs refer to inputs that are directly or indirectly observable for the
assets or liabilities other than Level 1 inputs; Level 3 inputs refer to unobservable inputs of the relevant assets or liabilities.On each balance sheet date the Group reevaluates the assets and liabilities continuously measured at fair value and
recognized in the financial statements in order to determine whether there is a conversion among the levels of fair value
measurement.4.Significant accounting judgment and estimate
The preparation of financial statements requires the management to make judgments estimates and assumptions.These judgments estimates and assumptions will affect the reported amounts and disclosures of income expenses assets
and liabilities and the disclosure of contingent liabilities on the balance sheet date. The results from the uncertainties of
these assumptions and estimates may lead to significant adjustments to the book amount of assets or liabilities that are
affected in the future.Judgment
Determination of the performance progress of construction contracts (only applicable to transfer of control over a period
of time)
The Group determines the performance progress of the construction contracts by input method. To be more specific
the Group determines the performance progress according to the proportion of the cumulative actual construction cost
to the estimated total cost while the cumulative actual cost includes the direct cost and indirect cost in the process of
transferring goods to customers. The Group believes that the construction contract price with customers is determined on
the basis of construction cost and the proportion of the actual construction cost to the estimated total cost can truly reflect
the performance progress of construction services. In view of the long duration of construction contracts which may span
several accounting periods the Group will recheck and revise the budget with the progress of the construction contracts and
adjust the amount of revenue recognized accordingly.Uncertainty of estimation
The following are other key sources of the uncertainty of the key assumptions and estimates in the future on the balance
sheet date which may lead to major adjustments in the book value of the assets and liabilities of next fiscal year.Impairment of financial instruments and contract assets
The Group adopts the expected credit loss model to assess the impairment of financial instruments and contract
assets. The application of the expected credit loss model requires significant judgments and estimates. It must consider
all reasonable and evidence-based information including forward-looking information. In making such judgments and
estimates the Group infers expected changes in debtors' credit risk based on historical repayment data combined with
economic policies macroeconomic indicators industry risks and other factors. Different estimates may affect the provision
for impairment and the amount of impairment that has been provided may be not equal to the actual amount of future
impairment losses.Inventory impairments
The management shall estimate the net realizable value of inventories in time so as to estimate the provision for
depreciation of inventories. If any event or circumstance changes it is necessary to use the estimate to make the provision
for depreciation of inventories if the inventory is not likely to realize the relevant value. If the expected amount is different
from the original estimate the relevant difference will affect the book value of the inventories and the impairment loss during
the estimated change.Impairment of non-current assets other than financial assets (other than goodwill)
On the balance sheet date the Group judges whether there are any signs of possible impairment of non-current
assets other than financial assets. Non-current assets other than financial assets are tested for impairment when there is
an indication showing that their book amounts are irrecoverable. When the book value of an asset or asset group is higher
than the recoverable amount that is the higher of the net amount from fair value less the disposal expense and the present
value of the estimated future cash flow it indicates that the impairment occurred. The net amount after the fair value minus
the disposal expenses is determined by reference to the sales agreement price of similar assets in the fair trade or the
observable market price minus the incremental cost directly attributable to the disposal of the asset. When estimating the
present value of future cash flows management must estimate the expected future cash flows of the asset or asset group
and select an appropriate discount rate to determine the present value of future cash flows.85
Impairment of goodwill
The Group tests whether the goodwill is impaired at least annually. This requires an estimate of the present value of
the future cash flows of the asset group or combination of asset groups to which goodwill is allocated. When estimating
the present value of future cash flows the Group needs to estimate the cash flow generated by future asset groups or
combination of asset groups and select the appropriate discount rate to determine the present value of future cash flows.See Note VII (28) for details.Fair value of unlisted equity investments
The valuation of unlisted equity investments is an estimated future cash flow discounted at the current discount rate
of other financial instruments with similar contract terms and risk characteristics. This requires the Group to estimate the
expected future cash flow credit risk fluctuation and discount rate; therefore there is some uncertainty.44 Changes in significant accounting policies and accounting estimates
(1) Changes in significant accounting policies
√Applicable □Not applicable
The contents
and reasons of Examination and approval procedures Remarks (the name and amount of the statement items the changes of which subject to important influence)
accounting policy
The new revenue standard establishes a new revenue
recognition model for regulating the revenue generated by
contracts with customers. According to the new revenue
standard the way of revenue recognition should reflect the
mode of the entity transferring goods or providing services
to customers and the amount of revenue should reflect the
amount of consideration that the entity is expected to be entitled
to due to the transfer of such goods and services to customers.In the meanwhile the new revenue standard also regulates the
judgment and estimation of every link of revenue recognition.The new revenue standard requires that on the enforcement
date of the contract the subject should evaluate the contract
identify the individual performance obligations contained in the
contract and determine whether the individual performance
obligations are performed within a certain period of time or at
a certain point of time. If one of the following conditions is met
In 2017 the Ministry of Finance issued the the performance obligation shall be performed within a certainrevised “Accounting Standard for Business period of time; otherwise the performance obligation shall beEnterprises No.14 – Revenue” (hereafter performed at a certain point of time: (I) The customer acquires
referred to as “new revenue standard”). The and consumes the economic benefits brought by the enterprise’s
Group has been made accounting treatment performance at the same time of the enterprise’s performance;
New revenue according to the new standards since January (II) The customer can control the goods or services under
standard 1 2020. According to the convergence construction during the performance of the contract by the provisions the information of the comparable enterprise; (III) The goods or services produced in the process of
period will not be adjusted and the difference performance have irreplaceable uses and the enterprise has the
between the first day implementation of the right to collect payment for the performance part that has been
new standards and the current standards is completed so far throughout the contract period. The Group only
retroactively adjusted to the retained earnings adjusts the cumulative impact of contracts not yet completed
at the beginning of 2020. on January 1 2020. For the contract changes before January
1 2020 the Group shall adopt the simplified treatment method
for accounting treatment according to the final arrangement
after the contract change and the relevant provisions of the new
standard. For large-sized port machinery heavy equipment
and steel structure products manufacturing business the
Group recognized the revenue by the completion percentage of
construction contract before January 1 2020. From January 1
2020 after analysis by the Group the performance obligations
contained in the contracts of large-sized port machinery heavy
equipment and some steel structure products manufacturing did
not meet the above conditions for performance obligations within
a certain period of time therefore based on the comprehensive
consideration of various factors the revenue was recognized
at the time of control transfer of related products. The above
changes resulted in the adjustment of the balance sheets of the
Group and the Company as at January 1 2020.Other description862020
The main impacts of the adjustments caused by the above changes in accounting policies on the financial statements
are as follows:
The Group2020
Book value Impact of new revenue standard Book value
December 31 2019 Reclassification Remeasurement January 1 2020
Accounts receivable 4966175528 - 3539747960 8505923488
Other receivables 1176561508 - 34480793 1211042301
Inventories 8561251580 12434158624 76838858 21072249062
Outstanding payments for
construction completed 12434158624 (12434158624) - -
Contract assets - - 987717554 987717554
Deferred income tax assets 486197635 - 282425445 768623080
Other non-current assets 161337287 - 899448701 1060785988
Advances from customers (822987986) 656237558 - (166750428)
Contract liabilities - (2336188437) (7404631245) (9740819682)
Amount settled for uncompleted work (1679950879) 1679950879 - -
Other current liabilitie - - (30770358) (30770358)
Surplus reserves (1761198709) - 143572545 (1617626164)
Undistributed profits (3651851383) - 1399694619 (2252156764)
Minority equity (3027632431) - 71475128 (2956157303)
The Company2020
Book value Impact of new revenue standard Book value
December 31 2019 Reclassification Remeasurement January 1 2020
Accounts receivable 11188977446 - 3208920449 14397897895
Other receivables 7850320715 - 34480793 7884801508
Inventories 8605357557 7399709689 99402083 16104469329
Outstanding payments for
construction completed 7399709689 (7399709689) - -
Contract assets - - 817100259 817100259
Deferred income tax assets 461638248 - 250834238 712472486
Other non-current assets - - 899448701 899448701
Advances from customers (490409652) 490409652 - -
Contract liabilities - (2543435528) (6745911977) (9289347505)
Amount settled for uncompleted work (2053025876) 2053025876 - -
Surplus reserves (1760690436) - 143572545 (1617117891)
Undistributed profits (3835099435) - 1292152909 (2542946526)
(2) Changes in accounting estimates
□Applicable √Not applicable
(3) The first implementation of new revenue standard and new lease standard for the adjustment of the financial
statements at the beginning of the first execution year since 2020
√Applicable □Not applicable87
Consolidated Balance Sheet
Unit: Yuan Currency: CNY
Item December 31 2019 January 1 2020 Adjustments
Current assets:
Monetary funds 3310297451 3310297451
Settlement provisions
Lending funds
Held-for-trading financial assets 1739792062 1739792062
Derivative financial assets
Notes receivable 5650000 5650000
Accounts receivable 4966175528 8505923488 3539747960
Receivables financing 406408604 406408604
Advances to suppliers 935878777 935878777
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables 1176561508 1211042301 34480793
Including: Interest receivable - -
Dividend receivable 1072390 1072390
Financial assets purchased under agreements to resell
Inventories 8561251580 21072249062 12510997482
Outstanding payments for construction completed 12434158624 - -12434158624
Contract assets 987717554 987717554
Assets held for sale
Non-current assets due within one year 1313203581 1313203581
Other current assets 720183574 720183574
Total current assets 35569561289 40208346454 4638785165
Non-current assets:
Disbursement of loans and advances
Debt investment
Other debt investments
Long-term receivables 5227728420 5227728420
Long-term equity investments 2873673745 2873673745
Other equity instrument investment 61981268 61981268
Other non-current financial assets
Investment properties 418425533 418425533
Fixed assets 21454967299 21454967299
Construction in progress 4380489888 4380489888
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 3506541366 3506541366
Development expenditures
Goodwill 268434934 268434934
Long-term deferred expenses 1444636 1444636882020
Item December 31 2019 January 1 2020 Adjustments
Deferred income tax assets 486197635 768623080 282425445
Other non-current assets 161337287 1060785988 899448701
Total non-current assets 38841222011 40023096157 1181874146
Total assets 74410783300 80231442611 5820659311
Current liabilities:
Short-term borrowings 22001319380 22001319380
Borrowings from the Central Bank
Borrowing funds
Held-for-trading financial liabilities 7312741 7312741
Derivative financial liabilities
Notes payable 3420945451 3420945451
Accounts payable 7869378365 7869378365
Advances from customers 822987986 166750428 -656237558
Contract liabilities 9740819682 9740819682
Amount settled for uncompleted work 1679950879 - -1679950879
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable 329978281 329978281
Tax payable 144506742 144506742
Other payables 711389996 711389996
Including: Interest payable
Dividends payable 31701965 31701965
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within a year 7287484513 7287484513
Other current liabilities 30770358 30770358
Total current liabilities 44275254334 51710655937 7435401603
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings 8413339986 8413339986
Bonds payable
Including: preferred stock
Perpetual bond
Lease liabilities
Long-term payables 1741945636 1741945636
Long-term payroll payable
Estimated liabilities 484000772 484000772
Deferred income 458722579 458722579
Deferred income tax liabilities 89856727 89856727
Other non-current liabilities 376626821 37662682189
Item December 31 2019 January 1 2020 Adjustments
Total non-current liabilities 11564492521 11564492521
Total liabilities 55839746855 63275148458 7435401603
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) 5268353501 5268353501
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserves 4834854332 4834854332
Less: treasury stock
Other comprehensive income 23530451 23530451
Special reserves 3615638 3615638
Surplus reserves 1761198709 1617626164 -143572545
General risk preparation
Undistributed profits 3651851383 2252156764 -1399694619
Total owners' equities attributable to the owners of parent
company 15543404014 14000136850 -1543267164
Minority equity 3027632431 2956157303 -71475128
Total owners’ equity (or shareholders' equity) 18571036445 16956294153 -1614742292
Total liabilities and owners’ equity (or shareholders'
equity) 74410783300 80231442611 5820659311
Notes to the adjustment of each item:
□Applicable √Not applicable
Balance Sheet of the Parent Company
Unit: Yuan Currency: CNY
Item December 31 2019 January 1 2020 Adjustments
Current assets:
Monetary funds 2009711462 2009711462
Held-for-trading financial assets 717766887 717766887
Derivative financial assets
Notes receivable 5650000 5650000
Accounts receivable 11188977446 14397897895 3208920449
Receivables financing 372373708 372373708
Advances to suppliers 2516366730 2516366730
Other receivables 7850320715 7884801508 34480793
Including: Interest receivable
Dividend receivable
Inventories 8605357557 16104469329 7499111772
Outstanding payments for construction completed 7399709689 - -7399709689
Contract assets 817100259 817100259
Assets held for sale
Non-current assets due within one year 16068800 16068800
Other current assets 242069645 242069645
Total current assets 40924372639 45084276223 4159903584902020
Item December 31 2019 January 1 2020 Adjustments
Non-current assets:
Debt investment
Other debt investments
Long-term receivables 349516318 349516318
Long-term equity investments 8748485729 8748485729
Other equity instrument investment 61981268 61981268
Other non-current financial assets
Investment properties 418425533 418425533
Fixed assets 4484852694 4484852694
Construction in progress 352334608 352334608
Productive biological assets
Oil and gas assets
Right-of-use assets
Intangible assets 1537053308 1537053308
Development expenditures
Goodwill
Long-term deferred expenses
Deferred income tax assets 461638248 712472486 250834238
Other non-current assets 899448701 899448701
Total non-current assets 16414287706 17564570645 1150282939
Total assets 57338660345 62648846868 5310186523
Current liabilities:
Short-term borrowings 16511846099 16511846099
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 4115677123 4115677123
Accounts payable 4097874390 4097874390
Advances from customers 490409652 - -490409652
Contract liabilities 9289347505 9289347505
Amount settled for uncompleted work 2053025876 - -2053025876
Payroll payable 312443598 312443598
Tax payable 24536759 24536759
Other payables 1223412212 1223412212
Including: Interest payable - -
Dividends payable 352598 352598
Liabilities held for sale
Non-current liabilities due within one year 5454698322 5454698322
Other current liabilities
Total current liabilities 34283924031 41029836008 6745911977
Non-current liabilities:
Long-term borrowings 6446433319 6446433319
Bonds payable
Including: preferred stock
Perpetual bond91
Item December 31 2019 January 1 2020 Adjustments
Lease liabilities
Long-term payables
Long-term payroll payable
Estimated liabilities 470724247 470724247
Deferred income 329345661 329345661
Deferred income tax liabilities
Other non-current liabilities 21272925 21272925
Total non-current liabilities 7267776152 7267776152
Total liabilities 41551700183 48297612160 6745911977
Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital) 5268353501 5268353501
Other equity instruments
Including: preferred stock
Perpetual bond
Capital reserves 4914468683 4914468683
Less: treasury stock
Other comprehensive income 8348107 8348107
Special reserves
Surplus reserves 1760690436 1617117891 -143572545
Undistributed profits 3835099435 2542946526 -1292152909
Total owners’ equity (or shareholders' equity) 15786960162 14351234708 -1435725454
Total liabilities and owners’ equity (or shareholders'
equity) 57338660345 62648846868 5310186523
Notes to the adjustment of each item:
□Applicable √Not applicable
(4) Description of the retrospective adjustment of previous comparative data under the initial implementation of new
revenue standard and new lease standard since 2020
□Applicable √Not applicable
45 Others
□Applicable √Not applicable
VI. Taxes
1 Main tax categories and tax rates
Main tax categories and tax rates
√Applicable □Not applicable
Category of tax Basis of tax computation Tax rate
The taxable income from the sales of the products in domestic market is 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 is
13%. The Group’s income from the marine transport is applicable to VAT and
the output tax is calculated as per 9%; the income from leasing of the equipment
VAT is applicable to the is applicable to VAT and the output tax is calculated as per 13% of the taxable
VAT sales of the Group’s income; the income from the sales of the equipment is applicable to the simple
products collection measures of VAT and the tax rate is subject to the reduced tax rate
of 2%; the Group’s income from the leasing of the housing is applicable to the
simple collection measures of VAT and the tax rate is 5%; the item “B-T” is
applicable to VAT and the output tax on the taxable income is collected at 9%.The above output tax shall calculate and pay VAT after deducting the amount of
input tax deductible except for the applicable VAT’s simple collection method.922020
Category of tax Basis of tax computation Tax rate
Consumption tax / /
Sales tax / /
Urban maintenance and VAT paid Calculated and paid according to 7% and 3% of the actual turnover tax paid construction tax respectively.The enterprise income tax is calculated and paid in accordance with the Enterprise
The enterprise income Income Tax Law of People’s Republic of China (hereinafter referred to as the
tax is calculated and paid “Income Tax Law”). In accordance with relevant regulations in the Administrative
in accordance with the Measures for Certification of New and High Technology Enterprises (GKFH [2016]
Enterprise Income Tax Law No.32) the Guidelines for the Administration of Qualification Accreditation of Enterprise income tax of People’s Republic of High-tech Enterprises (GKFH [2016] No.195) and the Circular on Announcing
China (hereinafter referred the Recognition List of the Second Batch of High-tech Enterprises of Shanghai into as the “Income Tax 2017 the Company was awarded the High-tech Enterprise Certificate (CertificateLaw”). Number: GR201831002345) in November 2017 with the valid term of 3 years. The application for new certificate in 2020 has been publicized. The Company
actually applied the enterprise income tax rate of 15% this year (2019: 15%).Where there are taxpayers with different enterprise income tax rates the disclosure shall be stated
√Applicable □Not applicable
Name of taxpayer Income tax rate (%)
The Company 15%
Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. 25%
Shanghai Zhenhua Port Machinery (Hong Kong) Co. Ltd. 16.50%
Shanghai Zhenhua Shipping Co. Ltd 25%
Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. 25%
Shanghai Zhenhua Heavy Industries Group (Nantong) Transmitter Co. Ltd. 15%
ZPMC Electric Co. Ltd. 15%
Shanghai Zhenhua Ocean Engineering Service Co. Ltd 25%
ZPMC Machinery Equipment Services Co. Ltd. 25%
Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co. Ltd. 25%
Shanghai Port Machinery Heavy Industry Co. Ltd 25%
ZPMC Zhangjiagang Port Machinery Co. Ltd. 25%
ZPMC Qidong Marine Engineering Co. Ltd. 25%
Jiahua Shipping Co. Ltd. 16.50%
Zhenhua Pufeng Wind Energy (HongKong) Co. Ltd. 16.50%
CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd 15%
Nanjing Ninggao New Channel Construction Co. Ltd 25%
CCCC Investment & Development Qidong Co. Ltd. 25%
CCCC Liyang Urban Investment and Construction Co. Ltd. 25%
CCCC (Huaian) Construction Development Co. Ltd. 25%
CCCC Zhenjiang Investment Construction Management Development Co. Ltd. 25%
CCCC Rudong Construction Development Co. Ltd. 25%
ZPMC Netherlands Co?peratie U.A. 25%
ZPMC Netherlands B.V. 25%
Verspannen B.V. 25%
ZPMC Espana S.L. 30%
ZPMC Italia S.r.l 24%
ZPMC GmbH Hamburg 32.25%
ZPMC Lanka Company (Private) Limited 24%93
Name of taxpayer Income tax rate (%)
ZPMC North America Inc. 8.84%
ZPMC Korea Co. Ltd. 20%
ZPMC Engineering Africa (Pty) Ltd. 28%
ZPMC Engineering (India) Private Limited 22%
ZPMC Southeast Asia Holding Pte. Ltd. 17%
ZPMC Engineering (Malaysia) Sdn. Bhd. 24%
ZPMC Australia Company (Pty) Ltd. 30%
ZPMC Brazil Servi?o Portuários LTDA 25%
ZPMC Limited Liability Company 20%
ZPMC NA East Coast lnc. 8.84%
ZPMC Middle East FZE 0%
ZPMC UK LD 20%
Greenland Heavylift (Hong Kong) Limited 16.5%
GPO Grace Limited 0%
GPO Amethyst Limited 0%
GPO Sapphire Limited 0%
GPO Emerald Limited 0%
GPO Heavylift Limited 0%
GPO Heavylift AS 0%
GPO Heavylift Pte Ltd 17%
ZPMC Latin America Holding Corporation 25%
Terminexus Co. Ltd. 16.5%
CCCC Yongjia Construction Development Co. Ltd. 25%
CCCC Zhenhua Lvjian Technology (Ningbo) Co. Ltd. 25%
ZPMC Hotel Co. Ltd. 25%
Xiong’an Zhenhua Co. Ltd. 25%
ZPMC Fuzhou Offshore Construction Co. Ltd. 25%
CCCC (Dongming) Investment and Construction Co. Ltd. 25%
Remark 1: Shanghai Zhenhua Heavy Industries Group (Nantong) Heavy Gear Reducer Co. Ltd won the Hi-tech
Enterprise Certificate (No. GR201932001426) in 2019 with the valid term of 3 years. Shanghai Zhenhua Port Machinery
Heavy Industries Co. Ltd. was recognized as a hi-tech enterprise in December 2019 and won the Hi-tech Enterprise
Certificate (No.: GR201931004259) with the valid term of 3 years. The company's tax rate was 15% last year and 15% this
year. Shanghai Zhenhua Heavy Industries Electric Co. Ltd was recognized as a hi-tech enterprise in November 2017 and
won the Hi-tech Enterprise Certificate (No.: GR202031001911) after reexamination in November 2020 with the valid term
of 3 years. CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. was recognized as hi-tech enterprise in August
2015 and won the Hi-tech Enterprise Certificate (No. GR201832001451) after reexamination in 2018 with the valid term of 3
years. In accordance with relevant provisions in Article 28 of the Income Tax Law the actually applicable enterprise income
tax rate for these companies in this year was 15% (2019: 15%).2 Tax preferences
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
VII.Notes to the main items of the consolidated financial statements
1 Monetary funds
√Applicable □Not applicable942020
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Cash on hand 1063472 1469655
Bank deposits 2896678868 3066555321
Other monetary funds 50332396 242272475
Total 2948074736 3310297451
Including: total amount of overseas deposits 829760121 888185684
As at December 31 2020 the other monetary funds including the restricted deposit of RMB 50332396 (as at
December 31 2019: RMB 242272475) were the money appropriated that was collected from the overseas projects and
deposited in the overseas regulatory accounts and the cash deposit deposited for application to the bank for the letter of
credit and letter of guarantee.As at December 31 2020 the overseas monetary fund deposited by the Group was RMB 829760121 (Dec. 31 2019:
RMB 888185684).As at December 31 2020 the bank deposits were current deposits. The interest income from current deposits is
calculated as per the interest rate of the current deposits.2 Held-for-trading financial assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Financial assets measured at fair value
through the current profit or loss 1601623650 1739792062
Including:
Equity instrument investment
Derivative financial assets – equity options 8438278 8438278
Investments in shares of listed companies 1593185372 1709118540
Derivative financial assets – forward foreign
exchange contracts and options 22235244
Financial assets designated to be measured
at fair value through the current profit or loss
Including:
Total 1601623650 1739792062
Other description:
√Applicable □Not applicable
(i) As at December 31 2020 the held-for-trading financial assets - derivative financial assets – equity options held by
the Group refers to the fair value of the right obtained at the time of acquiring Greenland Heavylift (Hong Kong) Limited to
purchase 1% of its equity of at the price of USD 1.(ii) As at December 31 2020 the listed company share investments held by the Group include 5.88% equity of Jiangxi
Huawu Brake Co. Ltd. 1.59% equity of Qingdao Port International Co. Ltd. 1.16% equity of CRSC 0.45% equity of
COSCO Shipping Holdings Co. Ltd. and 0.001% equity of Shenwan Hongyuan Group Co. Ltd.3 Derivative financial assets
□Applicable √Not applicable
4 Notes receivable
(1) Presentation of notes receivable by category
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Commercial acceptance bill 753000 5650000
Total 753000 565000095
(2) Notes receivable pledged by the Company at the end of the period
□Applicable √Not applicable
(3) Notes receivable endorsed or discounted by the Company at the end of the period and not yet due on the balance
sheet date
□Applicable √Not applicable
(4) Notes transferred to accounts receivable by the Company at the end of the period due to drawer’s failure in
performance
□Applicable √Not applicable
(5) Disclosure by bad debt calculation method
□Applicable √Not applicable
Individual provision for bad debts:
□Applicable √Not applicable
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss please refer to other
receivables for disclosure:
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
(7) Notes receivable actually written off in the current period
□Applicable √Not applicable
Other description
□Applicable √Not applicable
5 Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Aging December 31 2020
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 6178309160
1- 2 years 1012042953
2- 3 years 314526234
Over 3 years
3- 4 years 177871594
4- 5 years 334395800
Over 5 years 1084691181
Total 9101836922
(2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount Amount
(%) provision (%)
Provision for bad debts accrued on
an individual basis 660986510 7 529388510 80 131598000
Including:
Provision for bad debts by portfolio 8440850412 93 1345383157 16 7095467255
Including
Total 9101836922 / 1874771667 / 7227065255962020
December 31 2019
Book balance Provision for bad debts
Category
Proportion Proportion of Book value
Amount Amount
(%) provision (%)
Provision for bad debts accrued on
an individual basis 753396385 7 591042385 78 162354000
Including:
Provision for bad debts by portfolio 9529023401 93 1185453913 12 8343569488
Including
Total 10282419786 / 1776496298 / 8505923488
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020
Name Provision for bad Proportion of
Book balance Reason for provision
debts provision (%)
Accounts receivable 1 277613400 146015400 53 Counterparty financial shortage
Accounts receivable 2 187863245 187863245 100 Contract dispute
Accounts receivable 3 93954000 93954000 100 Counterparty financial shortage
Accounts receivable 4 42979947 42979947 100 Contract dispute
Accounts receivable 5 26099665 26099665 100 Contract dispute
Accounts receivable 6 11037000 11037000 100 Contract dispute
Accounts receivable 7 8103043 8103043 100 Contract dispute
Accounts receivable 8 6980371 6980371 100 Contract dispute
Accounts receivable 9 3300179 3300179 100 Contract dispute
Accounts receivable 10 2236498 2236498 100 Contract dispute
Accounts receivable 11 819162 819162 100 Contract dispute
Total 660986510 529388510 80 /
Description of individual provision for bad debts:
√Applicable □Not applicable
As at December 31 2019 the accounts receivables with individual provision for bad debts are as follows:
Provision for bad Estimated credit
Book balance Reason for provision
debts loss ratio %
Accounts receivable 1 324708000 162354000 50 Counterparty financial shortage
Accounts receivable 2 182958900 182958900 100 Contract dispute
Accounts receivable 3 158184500 158184500 100 Counterparty financial shortage
Accounts receivable 4 27904870 27904870 100 Contract dispute
Accounts receivable 5 26911147 26911147 100 Contract dispute
Accounts receivable 6 10748869 10748869 100 Contract dispute
Accounts receivable 7 7815500 7815500 100 Contract dispute
Accounts receivable 8 7463174 7463174 100 Contract dispute
Accounts receivable 9 3582135 3582135 100 Contract dispute
Accounts receivable 10 2224013 2224013 100 Contract dispute
Accounts receivable 11 895277 895277 100 Contract dispute
Total 753396385 59104238597
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss please refer to other
receivables for disclosure:
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
The recovered or reversed provision for bad debts with significant amount:
□Applicable √Not applicable
(4) Accounts receivable actually written off in the current period
□Applicable √Not applicable
(5) Top 5 accounts receivable in terms of ending balance presented by debtor
√Applicable □Not applicable
As at December 31 2020 top 5 accounts receivable in terms of ending balance presented by debtor summarized and
analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 1810933879 432753771 20
As at December 31 2019 top 5 accounts receivable in terms of ending balance presented by debtor summarized and
analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 1305425250 367432657 20
(6) Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Changes in the provision for bad debts of accounts receivable are as follows:
Adjustments
December 31 for changes January 1 Provision in Reversal in Reduction of December 31
2019 in accounting 2020 2020 2020 consolidation scope 2020policies
2020 1677451836 99044463 1776496299 416571263 (279106645) (39189250) 1874771667
2019 1529308221 111908301 1641216522 206632546 (170397232) - 1677451836
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
2020 2019
Book balance Estimated Expected credit Book balance Estimated Expected credit
of estimated credit loss loss for the entire of estimated credit loss loss for the
default ratio (%) duration default ratio (%) entire duration
Within 1 year 6154544858 5 293763096 3725543945 2 91032730
1-2 years 965250727 20 190547180 602231607 13 80579861
2-3 years 213806234 29 61516189 449964072 20 89520636
3-4 years 177715234 63 111926196 246662162 29 70797046
4-5 years 177122400 42 75011044 175572099 68 119983513
Over 5 years 752410959 81 612619452 690257094 92 634495665
Total 8440850412 1345383157 5890230979 1086409451982020
6 Receivables financing
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Bank acceptance bill 362006319 406408604
Total 362006319 406408604
Increase or decrease and changes in fair value of receivables financing in the current period:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss please refer to other
receivables for disclosure:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Notes receivable that had been endorsed or discounted and not matured on the balance sheet date are as follows:
2020 2019
Amount Amount not Amount Amount not
derecognized derecognized derecognized derecognized
Bank acceptance bill 571531799 - 738496754 -
7 Advances to suppliers
(1) Presentation of advances to suppliers by account age
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Account age
Amount Proportion (%) Amount Proportion (%)
Within 1 year 486471381 64 603532662 64
1-2 years 192424837 25 267030956 29
2-3 years 48275668 6 54362644 6
Over 3 years 40254261 5 10952515 1
Total 767426147 100 935878777 100
Explanation of the reasons why the advances to suppliers with the aging over one year and a significant amount is not
settled in time:
As at December 31 2020 the advances to suppliers of the Company with the aging over one year was RMB
280954766 (as at December 31 2019: RMB 332346115) mainly the advances to suppliers for the procurement of
imported parts which has not been yet settled because the purchased imported parts have not yet received.
(2) Top 5 advances to suppliers in terms of ending balance presented by prepaid object
√Applicable □Not applicable
As at December 31 2020 top 5 advances to suppliers in terms of ending balance presented by debtor summarized and
analyzed as follows:
Amount Proportion in total advances to suppliers %
Total advances to suppliers of top 5 balances 140561799 18
As at December 31 2019 top 5 advances to suppliers in terms of ending balance presented by debtor summarized and
analyzed as follows:
Amount Proportion in total advances to suppliers %
Total advances to suppliers of top 5 balances 354954218 3899
Other description
□Applicable √Not applicable
8 Other receivables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Interest receivable
Dividends receivable 1072390
Other receivables 913410163 1209969911
Total 913410163 1211042301
Other description:
□Applicable √Not applicable
Interest receivable
(1) Classification of interest receivable
□Applicable √Not applicable
(2) Significant overdue interest
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item (or invested entity) December 31 2020 December 31 2019
CCCC Nanjing Traffic Engineering Management Co. Ltd. 1072390
Total 1072390
(5) Significant dividends receivable aging over 1 year
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Other receivables
(7) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Aging December 31 2020
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 836659903
1-2 years 26116212
2-3 years 82447437
Over 3 years
3-4 years 193114103
4-5 years 1556265
Over 5 years 12274182
Total 11521681021002020
(8) Classification by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Nature of funds December 31 2020 December 31 2019
Unpaid taxes receivable 558720119 410468098
Secured repayment 164124678 164124678
Bid and performance bond 88706025 291599548
Advance payment receivable on behalf of
the third party 84615765 95480544
Money on call for product field service 33945802 43035827
Lease payment receivable 33434667 33434668
Customs-related security deposit 33365314 38241878
Staff borrowings receivable 20309050 23557060
Export rebates 166044 214352290
Deposit receivable 10000 2946042
Others 134770638 130868274
Total 1152168102 1448108907
(9) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Provision for bad debts Estimated credit Expected credit loss for Expected credit loss for Total
losses over the the entire duration (no the entire duration (credit
next 12 months credit impairment) impairment has occurred)
Balance as at January 1 2020 9710907 228428089 238138996
Balance as at January 1 2020 in
current period
--Transferred to Stage II
--Transferred to Stage III
--Reversal to Stage II
--Reversal to Stage I
Provision in the current period 1281361 1281361
Reversal in the current period -662418 -662418
Write-off in the current period
Charge-off in the current period
Other changes
Balance as at December 31 2020 10329850 228428089 238757939
Description of significant changes in book balance of other receivables with changes in loss provision in the current
period
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
□Applicable √Not applicable
(10) Provision for bad debts
□Applicable √Not applicable
(11) Other receivables actually written off in the current period
□Applicable √Not applicable101
(12) Top 5 other receivables in terms of ending balance presented by debtor
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Proportion in the Balance of provision
Name Nature December 31 2020 Aging total balance of other for bad debts at the receivables (%) end of the year
Other receivables 1 Secured repayment 164124678 3-4 years 14 164124678
Other receivables 2 Advance payment 54318681 4-5 years 5 52427770
Other receivables 3 Performance bond 34800000 2-3 years 3
Other receivables 4 Lease payment receivable 33434668 Within 1 year 3
Other receivables 5 Customs-related security deposit 33365315 Within 1 year 3
Total / 320043342 / 28 216552448
(13) Receivables involving government subsidies
□Applicable √Not applicable
(14) Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(15) Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
9 Inventories
(1) Classification
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Provision for inventory Provision for inventory
Item depreciation/ depreciation/
Book balance Provision for Book value Book balance Provision for Book value
impairment of contract impairment of contract
performance cost performance cost
Raw materials 3118133185 54960402 3063172783 3370311931 76456971 3293854960
Goods in process 20113138980 939360778 19173778202 18795106546 1021070136 17774036410
Stock commodities 14573887 - 14573887 4357692 - 4357692
Revolving materials
Consumptive biological
assets
Contract performance
74314244 - 74314244
cost
Total 23320160296 994321180 22325839116 22169776169 1097527107 21072249062
(2) Provision for inventory depreciation and provision for impairment of contract performance cost
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in the current period Decrease in the current period
December 31 December 31
Item
2019 Reversal or write-Provision Other Other 2020
off
Raw materials 76456971 20717774 42214343 54960402
Goods in process 1021070136 358911278 440620636 9393607781022020
Increase in the current period Decrease in the current period
December 31 December 31
Item
2019 Reversal or write-Provision Other Other 2020
off
Stock commodities
Revolving materials
Consumptive biological
assets
Contract performance cost
Total 1097527107 379629052 482834979 994321180
(3) Description of the amount of capitalized borrowing costs included in ending balance of inventories
□Applicable √Not applicable
(4) Description of the current amortization amount of contract performance cost
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Provision for inventory depreciation is as follows:
Reasons for provision for depreciation
Specific basis for determination of net
of inventories reversed or written-off in
realizable values
the current year
Product price fall results in raw materials
Raw materials and outsourced parts and and outsourced parts and components
components Difference between the net realizable value Value recovery or external sales
and its book value
Goods in process Difference between the net realizable value and the book value of goods in process Value recovery or self-use
The write-off of provision for depreciation of goods in process mainly included the drilling platforms and floating cranes
originally planned for sale which were changed for self-use according to the resolution of the Company’s management.Total amount of possible penalties for failure to fulfill the obligations as contracted:
2020 2019
Valid letter of guarantee signed by the bank 12587156263 11500477841
Letter of guarantee not signed by the bank 6717974498 7293181242
Total 19305130761 18793659083
10 Contract assets (Applicable since Jan. 1 2020)
(1) Particulars about contract assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Warranty balance recognized at the time
877580462 43597676 833982786 435489867 16195461 419294406
of control transfer
Outstanding payments for construction
1272225639 42911535 1229314104 568423148 - 568423148
completed
Total 2149806101 86509211 2063296890 1003913015 16195461 987717554
(2) Amount of and reason for significant changes in book value during the reporting period
□Applicable √Not applicable103
(3) Provision for impairment of contract assets in current period
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Provision in the current Reversal in the Write-off/charge-off in the
Item Reason
period current period current period
Warranty balance recognized at the
time of control transfer 35823814 4231421 - /
Outstanding payments for
construction completed 38721357 - /
Total 74545171 4231421 - /
If the provision for bad debts is calculated based on the general model of expected credit loss please refer to other
receivables for disclosure:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Remark 1: When the Group sells equipment to customers and provides relevant installation services it constitutes a single
performance obligation. When the Group recognizes revenue at the time of fulfilling its performance obligations the Company’s
unconditional (i.e. only depending on the passage of time) right to collect consideration from customers shall be presented as
receivables. The non-invoiced contract warranty balance is the right to conditionally collect the consideration from the customer.Therefore the Company recognizes the non-invoiced contract receivables as contract assets and the contract assets will form
unconditional collection right after the expiration of the warranty and will be transferred to the receivables.Remark 2: The Group provides customers with infrastructure construction services and steel structure product
manufacturing and recognizes revenue within a period of time to form contract assets. The contract assets will form
unconditional collection right at the time of project settlement and are transferred in receivables. The customers shall settle
accounts with the Group on the performance progress of engineering construction services and the delivery of steel structure
products under contract provisions and pay the contract price according to the credit period specified in the contract after
settlement. The part of the income amount recognized by the Group according to the performance progress exceeding the
settled price is recognized as contract assets and the part of the settled price exceeding the income amount recognized by
the Group according to the performance progress is recognized as contract liabilities.The contract assets with provision for impairment loss by credit risk features portfolio are as follows:2020
Book balance of estimated Estimated credit loss in the
Estimated credit loss rate (%)
default entire duration
Within 1 year 2089790091 3 69984114
1-2 years 22579760 13 3032663
2-3 years 15189774 24 3623174
Over 3 years 22246476 44 9869260
Total 2149806101 86509211
In this year the performance progress of relevant construction contracts of the Group increased and some of the
performance progress had not been settled resulting in the increase in the book value of contract assets.11 Assets held for sale
□Applicable √Not applicable
12 Non-current assets due within one year
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Debt investment due within one year
Other debt investments due within one year
Long-term receivables due within one year 1884370444 1313203581
Total 1884370444 13132035811042020
Important debt investment and other debt investments due at the end of the period:
□Applicable √Not applicable
Other description
None
13 Other current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Contract acquisition cost - -
Return cost receivable - -
Input tax to be deducted 688621455 704526288
Prepaid income tax 19862647 15657286
Total 708484102 720183574
Other description
None
14 Debt investment
(1) Particulars about debt investment
□Applicable √Not applicable
(2) Important debt investment at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□Applicable √Not applicable
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly
□Applicable √Not applicable
Other description
□Applicable √Not applicable
15 Other debt investments
(1) Particulars about other debt investments
□Applicable √Not applicable
(2) Important other debt investments at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□Applicable √Not applicable
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
16 Long-term receivables
(1) Long-term receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Provision Discount
Book balance for bad Book value Book balance Provision for bad debt Book value
rate range
debt
Financing lease
Including: Unrealized financing
income105
December 31 2020 December 31 2019
Item Provision Discount
Book balance for bad Book value Book balance Provision rate range
debt for bad debt
Book value
Goods sold on installment
Services provided on installmentReceivables from “Building –Transfer” project
- Principal 6555235454 6555235454 6140109748 6140109748
- Interest receivable 371433599 371433599 349937720 349937720
Accounts receivable from the projects
34815733 34815733 50884533 50884533
of collection of payment by installment
Less: Long-term receivables due
-1884370444 -1884370444 -1313203581 -1313203581
within one year
Total 5077114342 5077114342 5227728420 5227728420 /
As at December 31 2020 and December 31 2019 the account receivable from “Building – Transfer” project was the
principal invested in above “Building– Transfer” project by the Group and the amount of interest receivable was the financing
return recognized based on the contract.As at December 31 2020 the long-term accounts receivable were RMB 5614309162 (as at December 31 2019: RMB
4482230928) which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 1947736154 (as
at December 31 2019: Long-term borrowings of RMB 1420127942).
(2) Provision for bad debts
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly
□Applicable √Not applicable
(3) Long-term receivables derecognized due to transfer of financial assets
□Applicable √Not applicable
(4) Amount of assets and liabilities formed by transferring long-term receivables and continuing involvement
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Aging analysis of long-term receivable is as follows:
Item 2020 2019
Within 1 year 1499350642 1189304357
1-2 years 1104671995 1633251803
2-3 years 1467238387 1996302110
Over 3 years 2890223762 1722073731
Sub-total 6961484786 6540932001
Less: Long-term receivables due within one year 1884370444 1313203581
Total 5077114342 5227728420
17 Long-term equity investments
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase/decrease in the current period
Provision for
December 31 Profit or loss Adjustment Cash dividends Invested entity December 31 impairment at 2019 Further Reduced on investments of other Changes in or profit Provision for 2020 the end of the
investment investment under the equity comprehensive other equity declared to be impairment Other year
method income distributed
I. Joint ventures
Jiangsu Longyuan Zhenhua
260880653 15179788 276060441
Marine Engineering Co. Ltd1062020
Increase/decrease in the current period
Provision for
December 31 Profit or loss Adjustment Cash dividends Invested entity December 31 impairment at 2019 Further Reduced on investments of other Changes in or profit Provision for 2020 the end of the
investment investment under the equity comprehensive other equity declared to be impairment Other year
method income distributed
CCCC Tianhe Xi’an Equipment
36170279 -366861 -35803418
Manufacturing Co. Ltd. (ii)
ZPMC Mediterranean Liman
Makinalari Ticaret Anonim 3735189 -3165847 569342
Sirketi
ZPMC-OTL MARINE
- - - - - - - - - - -
CONTRACTOR LIMITED
Zhenhua Marine Energy (HK)
- - - - - - - - - - -
Co. Ltd. (i)
Cranetech Global Sdn. Bhd. 746700 -114520 632180
CCCC Nanjing Traffic
Engineering Management Co. 11279238 9899 -11289137
Ltd. (ii)
Sub-total 312812059 11542459 -47092555 277261963
II. Associates
CCCC Financial Leasing Co.1785702878 118432798 -1271676 -19713242 1883150758
Ltd (iii)
CCCC Estate Yixing Co. Ltd. 183660541 5982621 -2700000 186943162
CCCC South American
186678840 -2462090 -23615519 160601231
Regional Company SARL
China Communications
60719949 -1690256 -3776695 55252998
Construction USA Inc.CCCC Marine Engineering &
Technology Research Center 16730804 185678 16916482
Co. Ltd.ZPMC Changzhou Coatings
17635277 2241634 -3984470 15892441
Co. Ltd.ZPMC Southeast Asia Pte. Ltd 1670322 -14674 1655648
CCCC Yancheng Construction
289766242 128750000 418516242
Development Co. Ltd.Suzhou Chuanglian Electric
11941407 5153633 17095040
Drive Co. Ltd.Shanghai Ocean Engineering
Equipment Manufacturing 6355426 -485085 5870341
Innovation Center Co. Ltd.CCCC Xiongan Urban
Construction Development 1500000 6228 1506228
Co. Ltd. (iv)
Shanghai Xingyi Construction
1570350 1570350
Technology Co. Ltd.Sub-total 2560861686 131820350 127350487 -28663890 -26397712 2764970921
Total 2873673745 131820350 138892946 -28663890 -26397712 -47092555 3042232884
Other description
Joint ventures:
(i) On May 5 2014 the subsidiary of the Company and the partner invested to establish Zhenhua Marine Energy
(Hong Kong) Co. Ltd (Zhenhua Marine Energy). The registered capital is USD 5969998. The subsidiary of the Company
contributed USD 3044699 with the shareholding ratio of 51%. Zhenhua Marine Energy focused on the vessel transportation
business. Based on the regulations of the shareholder agreement the important events of such company shall be agreed
by at least 75% shareholders via voting. Hence the Group has no control right but jointly controls Zhenhua Marine Energy
together with the partner.(ii) On June 4 2020 CCCC the controlling shareholder of the Company increased the investment amounting to RMB
1000000000 to CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. the holding subsidiary of the Company.On the same day the persons acting in concert agreement between CCCC and the Company was terminated. Therefore
on June 4 2020 the proportion of voting rights enjoyed by the Company was changed to 16.52% and the Company no
longer had control over CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. Since June 4 2020 the Group would
no longer include CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. into the scope of combination. Therefore
the two joint ventures of CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. i.e. CCCC Tianhe Xi'an Equipment
Manufacturing Co. Ltd. and CCCC Nanjing Traffic Engineering Management Co. Ltd. are no longer joint ventures of the
Group at the end of this year.107
Associates:
(i) On May 31 2016 the Company and other shareholders increased the capital amounting to RMB 420000000 to
CCCC Financial Leasing Co. Ltd. in the same proportion. After the capital increase the investment costs of the Company to
CCCC Financial Leasing Co. Ltd. Increased to RMB 1500000000 with the unchanged shareholding ratio of 30%.(iv) On June 23 2020 the Company invested to establish CCCC Xiongan Urban Construction Development Co. Ltd.The registered capital was RRMB 100000000. The Company contributed RMB 15000000 with the shareholding ratio of
15%. The company was mainly engaged in the engineering construction. According to relevant provisions of the Articles of
Association the Company has the right to appoint one director to CCCC Xiongan Urban Construction Development Co. Ltd
and can exert significant influence on the company.18 Other equity instrument investment
(1) Particulars about other equity instrument investment
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Hunan Fengri Power & Electric Co. Ltd. 22685894 24348689
CCCC Highway Bridges National Engineering Research Centre Co. Ltd. 19319276 17649136
CCCC National Engineering Research Center of Dredging Technology
and Equipment Co. Ltd. 8000908 9005378
Ningbo Weilong Port Machinery Co. Ltd. (Former name: ZPMC Ningbo
Transmission Machinery Co. Ltd) 6565227 7241610
Shenyang Weichen Crane Equipment Co. Ltd. (Former name: Shanghai
Zhenhua Port Machinery (Group) Shenyang Elevator Co. Ltd.) 4197036 2865664
ZPMC Longchang Lifting Equipment Co. Ltd (Former name: Shanghai
Zhenhua Port Machinery (Group) Longchang Lifting Equipment Co. 737410 870791
Ltd.)
Total 61505751 61981268
(2) Equity instrument investment not held for trading
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount Reasons for
Dividend of other Reasons for financial
income comprehensive assets designated
transferring
Item recognized Accumulated Accumulated income to be measured at
other
in the current gains losses transferred fair value through
comprehensive
period to retained other comprehensive
income into
retained
earnings income earnings
Hunan Fengri Power &
Electric Co. Ltd. 2687734
Strategic investment
long-term holding
CCCC Highway Bridges
National Engineering 6319276 Strategic investment Research Centre Co. long-term holding
Ltd.CCCC National
Engineering Research
Center of Dredging 1600908 Strategic investment
Technology and long-term holding
Equipment Co. Ltd.Ningbo Weilong Port
Machinery Co. Ltd.
(Former name: ZPMC 5269227 Strategic investment
Ningbo Transmission long-term holding
Machinery Co. Ltd)1082020
Amount Reasons for financial Reasons for Dividend of other transferring
income assets designated
Item recognized Accumulated Accumulated
comprehensive
income to be measured at
other
gains losses fair value through comprehensive in the current transferred other comprehensive income into period to retained retained
earnings income earnings
Shenyang Weichen
Crane Equipment Co.Ltd. (Former name:
Shanghai Zhenhua 2697036 Strategic investment
Port Machinery (Group) long-term holding
Shenyang Elevator Co.Ltd.)
ZPMC Longchang
Lifting Equipment Co.Ltd (Former name:
Shanghai Zhenhua 62590 Strategic investment
Port Machinery (Group) long-term holding
Longchang Lifting
Equipment Co. Ltd.)
21st Century Science
and Technology 30000000 Strategic investment
Investment Co. Ltd. long-term holding
Other description:
□Applicable √Not applicable
19 Other non-current financial assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Financial assets measured at fair value through the current profit or loss 330094057 -
Total 330094057 -
Other description:
√Applicable □Not applicable
On December 31 2020 the Group’s financial assets measured at fair value through the current profit or loss are the fair
value of the Company’s 16.52% equity in CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd.20 Investment properties
Measurement model of investment properties
(1) Investment properties with cost measurement mode
Unit: Yuan Currency: CNY
Buildings and Construction in
Item Land use right Total
constructions progress
I. Original book value
1. Balance as at December 31 2019 397820689 209845794 607666483
2. Increase in current period 68064517 68064517
(1) Outsourcing
(2) Transfer-in of inventories fixed assets and
construction in progress
(3) Increase in business combination
(4) Debt restructuring for debt repayment 68064517 68064517
3. Decrease in current period109
Buildings and Construction in
Item Land use right Total
constructions progress
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31 2020 465885206 209845794 675731000
II. Accumulative depreciation and amortization
1. Balance as at December 31 2019 123057915 66183035 189240950
2. Increase in current period 13511735 5370796 18882531
(1) Provision or amortization 13511735 5370796 18882531
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31 2020 136569650 71553831 208123481
III. Provision for impairment
1. Balance as at December 31 2019
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31 2020
IV. Book value
1. Book value at the end of the period 329315556 138291963 467607519
2. Book value at the beginning of the period 274762774 143662759 418425533
(2) Investment property without certificate of title
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Remark 1: the newly added property in this year is the property received from customers in debt restructuring for
debt repayment. The book value is recognized by the fair value of the abandoned creditor's rights and other costs directly
attributable to the assets such as taxes. As of December 31 2020 the ownership of the property has been changed.21 Fixed assets
Item presentation
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Fixed assets
(1) Particulars about fixed assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Office and Transportation
Buildings and Machinery
Item electronic facilities Ship Total
constructions equipment
equipment (Excluding ship)
I. Original book value
1. Balance as at December
31 2019 11569317816 8430886826 270788319 258377194 13994101710 34523471865
2. Increase in current period 30571004 734689502 30120874 16609972 1229829911 2041821263
(1) Purchase 11773442 228582283 27602740 16609972 3835965 2884044021102020
Office and Transportation
Buildings and Machinery
Item electronic facilities Ship Total
constructions equipment
equipment (Excluding ship)
(2) Transfer-in of construction
in progress 18797562 506107219 2518134 1225993946 1753416861
(3) Increase in business
combination
3. Decrease in current period 449722197 2280519036 16859344 17921204 212005670 2977027451
(1) Disposal or scrap 458447 72668322 2853592 8113117 970879 85064357
(2) Reduction of consolidation
scope 449263750 2207850714 14005752 9808087 2680928303
(3) Exchange rate changes 211034791 211034791
4. Balance as at December
31 2020 11150166623 6885057292 284049849 257065962 15011925951 33588265677
II. Accumulated depreciation
1. Balance as at December
31 2019 4038333249 5539517778 207931042 184292139 3098430358 13068504566
2. Increase in current period 362200339 290031654 17748088 10952920 537087321 1218020322
(1) Provision 362200339 290031654 17748088 10952920 537087321 1218020322
3. Decrease in current period 87675328 370458172 11352967 17146267 32227874 518860608
(1) Disposal or scrap 227588 59443047 2575139 8113117 733974 71092865
(2) Reduction of consolidation
scope 87447740 311015125 8777828 9033150 416273843
(3) Exchange rate changes 31493900 31493900
4. Balance as at December
31 2020 4312858260 5459091260 214326163 178098792 3603289805 13767664280
III. Provision for impairment
1. Balance as at December
31 2019
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal or scrap
4. Balance as at December
31 2020
IV. Book value
1. Book value at the end of
the period 6837308363 1425966032 69723686 78967170 11408636146 19820601397
2. Book value at the
beginning of the period 7530984567 2891369048 62857277 74085055 10895671352 21454967299
(2) Temporary idle fixed assets
□Applicable √Not applicable
(3) Fixed assets acquired under finance leases
□Applicable √Not applicable
(4) Fixed assets leased out through operating lease
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Book value at the end of the period
Vessel 4314276451111
(5) Fixed assets without certificate of title
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Book value Reasons for pending certificate of title
Buildings and constructions 880944048 The handling of relevant formalities is still in process.Other description:
√Applicable □Not applicable
As at December 31 2020 the following fixed assets were taken as loan mortgage:
Borrowings
Original price Book value
Nature Amount
Vessel 3329529889 2821018550 Long-term payables 1807890037
As at December 31 2019 the following fixed assets were taken as loan mortgage:
Borrowings
Original price Book value
Nature Amount
Machinery equipment 1387867681 255113376 Long-term payables 89262318
Vessel 6634000717 5439133909 Long-term payables 2161280894
Total 8021868398 5694247285 2250543212
As at December 31 2020 and December 31 2019 the book values of fixed assets for operating lease were as follows:
2020 2019
Machinery equipment - 783490756
Vessel 4314276451 1622945798
Total 4314276451 2406436554
As at December 31 2020 the fixed assets with pending certificate of title were as follows:
Book value Reasons for pending certificate of title
Buildings and constructions 880944048 The handling of relevant formalities is still in process.Liquidation of fixed assets
□Applicable √Not applicable
22 Construction in progress
Item presentation
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Construction in progress
(1) Particulars about construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item
Book balance Provision for Book value Book balance Provision for impairment impairment Book value
Infrastructure construction of Nantong
144172138 144172138 98623383 98623383
Base1122020
December 31 2020 December 31 2019
Item
Book balance Provision for Book value Book balance Provision for impairment impairment Book value
Infrastructure construction of
115534831 115534831 80973129 80973129
Changxing Base
Large machinery and engineering
equipment of the base under 4127886615 4127886615 4052729743 4052729743
construction
Office building and ancillary facilities 29401 29401
Shield machine parts project 28416002 28416002
Infrastructure construction of Nanhui
3451124 3451124 3061744 3061744
Base
Large mechanical reconstruction and
129103111 129103111 116656486 116656486
upgrading project
Total 4520147819 4520147819 4380489888 4380489888
(2) Changes of major construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount
Proportion of Including:
transferred Other Cumulative Capitalization rate
cumulative capitalization
December 31 Increase in the into fixed decreases in December Construction amount of for the interest in
Project Budget project of the interest Fund source
2019 current period assets in the current 31 2020 progress interest the current period
investment in in the current
the current period capitalized (%)
budget (%) period
period
Infrastructure
Self-owned
construction of 7817201771 98623383 62448765 16900010 144172138 85 85
funds
Nantong Base
Infrastructure Self-owned
construction of 8678930500 80973129 38654498 4014003 78793 115534831 83 83 23531836 funds and bank
Changxing Base borrowings
Large machinery
and engineering Self-owned
equipment of 8362817390 4052729743 970168945 463797781 431214292 4127886615 98 98 213369676 53531666 3.48 funds and bank
the base under borrowings
construction
Office building and Self-owned
34798370 29401 86842 116243 99 99
ancillary facilities funds
Self-owned
Shield machine
140796531 28416002 9431135 7701302 30145835 93 93 5762616 funds and bank
parts project
borrowings
Infrastructure
Self-owned
construction of 531736425 3061744 10207567 9818187 3451124 89 89
funds
Nanhui Base
Large mechanical
Self-owned
reconstruction and 1200868710 116656486 105882437 48999335 44436477 129103111 76 76
funds
upgrading project
Total 26767149697 4380489888 1196880189 551346861 505875397 4520147819 / / 242664128 53531666 / /
(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 applicable113
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
26 Intangible assets
(1) Particulars about intangible assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Land use Nonproprietary Software Proprietary
Item Patent right Total
right technology use fee technology
I. Original book value
1. Balance as at December
31 2019 4297078828 75619611 65296171 4437994610
2. Increase in current period 18805594 18805594
(1) Purchase 18487863 18487863
(2) Internal R & D
(3) Increase in business
combination
(4) Transfer-in of construction
in progress 317731 317731
3. Decrease in current period 96727232 96727232
(1) Disposal
(2) Reduction of consolidation
scope 96727232 96727232
4. Balance as at December
31 2020 4200351596 94425205 65296171 4360072972
II. Accumulated amortization
1. Balance as at December
31 2019 818093843 51245791 62113610 931453244
2. Increase in current period 86880884 6887365 1609730 95377979
(1) Provision 86880884 6887365 1609730 95377979
3. Decrease in current period 14208965 14208965
(1) Disposal
(2) Reduction of consolidation
scope 14208965 14208965
4. Balance as at December
31 2020 890765762 58133156 63723340 1012622258
III. Provision for impairment1142020
Land use Nonproprietary Software Proprietary
Item Patent right Total
right technology use fee technology
1. Balance as at December
31 2019
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
4. Balance as at December
31 2020
IV. Book value
1. Book value at the end of
the period 3309585834 36292049 1572831 3347450714
2. Book value at the
beginning of the period 3478984985 24373820 3182561 3506541366
At the end of the period the proportion of intangible assets formed through internal R&D in the balance of intangible
assets is 0.In 2020 total technology research and development expenses of the Group amounted to RMB 737468137 (2019:
RMB 887096178). These technology research and development expenses are not capitalized.
(2) Land use right without certificate of title
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
27 Development expenditures
□Applicable √Not applicable
28 Goodwill
(1) Original book value of goodwill
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current
Name of the invested Decrease in current periodperiod December 31
entity or the matters December 31 2019
forming goodwill Formed by Business2020
Disposal Other
combination
ZPMC Qidong Marine
Engineering Co. Ltd. 149212956 149212956
Verspannen B.V. 5412807 5412807
Greenland Heavy lift
(HongKong) Limited 113809171 7362471 106446700
Total 268434934 7362471 261072463
Remark 1: The decrease in the current year was caused by the translation differences of foreign currency statement.
(2) Provision for impairment of goodwill
□Applicable √Not applicable
(3) Information about the asset group or portfolio of the goodwill
□Applicable √Not applicable115
(4) Explain the goodwill impairment test process key parameters (such as the growth rate during forecast period when
estimating the present value of future cash flow growth rate during stable period profit rate discount rate forecast period if
applicable) and the recognition method of goodwill impairment loss
□Applicable √Not applicable
(5) Impact of goodwill impairment test
□Applicable √Not applicable
Other description
√Applicable □Not applicable
As at December 31 2020 the Group had no provision for the impairment of goodwill. When the impairment test is
conducted the book value of goodwill is amortized to the asset group portfolio expected to benefit from the synergistic effect
of business combination.The goodwill acquired through business combination has been distributed to the following asset groups for impairment test:
· Heavy equipment asset group
· Semi-submerged ship transport assets group of Greenland Heavylift (Hongkong) Limited (GHHL)
Heavy equipment asset group
The recoverable amount of heavy equipment asset group is measured based on the five-year budget approved by the
management and shall be measured with cash flow forecast method. Cash flow over 5-year period shall be calculated based
on the estimated growth rate.The main assumptions of the future cash flow discount method:
Growth rate during forecast period 8.12%-33.44%
Perpetual growth rate 3%
Gross profit rate 15.27%
Pre-tax discount rate 12.9%
GHHL semi-submerged ship transport assets group
The recoverable amount of GHHL semi-submerged ship transport assets group combination is determined based on
the expected future cash flow of the asset group and the expected future cash flow is determined according to the cash flow
forecast based on the transport service contract revenue expected to be obtained within the service life of vessel.The main assumptions of the future cash flow discount method:
Number of customized short-distance and long-distance transport
service contracts expected to be obtained 3 /year/vessel
Vessel utilization rate of general charter party 65%
Charter rate of general charter party USD 68000/ day
Pre-tax discount rate 11.9%
The distributions of the book value of goodwill to asset groups are as follows:
GHHL semi-submerged ship
Heavy equipment asset group Total
transport assets group
2020 2019 2020 2019 2020 2019
Book amount of goodwill 154625763 154625763 106446700 113809171 261072463 268434934
The perpetual growth rate adopted by management does not exceed the industry's long-term average growth rate.Based on the historical experience and the forecasts of market development the management determines the budget
gross profit rate and adopts the pretax interest rate which can reflect the specific risk of relevant asset group portfolio as the
discount rate. The above assumptions are used to analyze the recoverable amount of the asset group portfolio.1162020
29 Long-term deferred expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in the Amortization in Other
Item December 31 2019 December 31 2020
current period the current period decreases
Improvement expenditure of
fixed assets under operating 1444636 5744148 2892382 3793591 502811
lease
Total 1444636 5744148 2892382 3793591 502811
Other description:2019
December Increase in the Amortization in Other December 31
31 2019 current year the current year decreases 2020
Improvement expenditure of fixed
assets under operating lease 5112664 - (3668028) - 1444636
30 Deferred income tax assets/liabilities
(1) Deferred income tax assets before offsetting
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Deductible temporary Deferred income Deductible temporary Deferred income
differences tax assets differences tax assets
Provision for impairment of assets 2828618698 424967341 4365778693 654866804
Unrealized profits of internal
transactions 131655187 19748278 60082114 12012332
Deductible loss 1966910762 295036614 384592112 57688817
Estimated liabilities 253696912 38054537 470724247 70608637
Wages and salaries unpaid 29765369 4464805 28462182 4269327
Interest unpaid 16209697 2431454 37098343 5564751
Deferred income 63738135 9560720
Unrealized contract gross profit 431033663 64655049 202110980 30316647
Changes in fair value of held-for-
trading financial liabilities 7312741 1096911
Total 5657890288 849358078 5619899547 845984946
(2) Deferred income tax liabilities before offsetting
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Taxable temporary Deferred income Taxable temporary Deferred income
differences tax liabilities differences tax liabilities
Asset evaluation increment from business
combination not under common control 111575168 16736275 126855063 19028259
Changes in fair value of other debt investments - - - -
Changes in fair value of other equity investment 18511592 2776739 18987108 2848066
Changes in fair value of held-for-trading
financial assets 686586358 103059339 373507095 57055388
Depreciation of fixed assets 482995412 80491724 535071991 88286880
Total 1299668530 203064077 1054421257 167218593117
(3) Deferred income tax assets or liabilities presented by net amount after offset
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Balance of deferred Offset amount of Balance of deferred
Offset amount of
income tax assets deferred income tax income tax assets and
deferred income tax
Item and liabilities after assets and liabilities liabilities after offset
assets and liabilities at
offset at the end of at the beginning of at the beginning of
the end of the period
the period the period the period
Deferred income tax assets 96397406 752960672 77361866 768623080
Deferred income tax liabilities 96397406 106666671 77361866 89856727
(4) Details of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Deductible temporary differences 184855083 222990045
Deductible losses 1676785029 1671758752
Total 1861640112 1894748797
(5) The deductible losses on the unrecognized deferred income tax assets will become due in the following years
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Year December 31 2020 December 31 2019 Remark
2020 368426916
2021 69696906 99087307
2022 248507784 252840194
2023 562790591 576831247
2024 374573088 374573088
2025 421216660
Total 1676785029 1671758752 /
Other description:
□Applicable √Not applicable
31 Other non-current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Contract acquisition cost - - - - - -
Return cost receivable - - - - - -
Contract warranty balance
receivable 551442577 18260301 533182276 938482329 39033628 899448701
Advance payment for vessels 134070905 - 134070905 132563749 - 132563749
Outstanding payments for
construction completed 169751108 - 169751108 - - -1182020
December 31 2020 December 31 2019
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Advance payment for office
buildings - - - 28773538 28773538
Total 855264590 18260301 837004289 1099819616 39033628 1060785988
Other description:
The changes in the provision for impairment of the contract warranty balance receivable are as follows:
Adjustments Balance at the
Provision in Balance at
Balance at the for changes beginning of Reversal in the
the current the end of the
end of last year in accounting the current current year
year current year
policies year
2020 - 39033628 39033628 16743103 (37516430) 18260301
32 Short-term borrowings
(1) Classification of short-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Pledged borrowings
Mortgage borrowings
Guaranteed borrowings 2321035033 1363293671
Fiduciary borrowings 15474041532 20638025709
Total 17795076565 22001319380
Description of the classification of short-term borrowings:
As at December 31 2020 the annual interest rate on the aforesaid borrowings ranges from 0.50% to 5.66% (as at
December 31 2019: 2.7% to 5.66%).(i) As at December 31 2020 the bank guarantee loan amounting to USD 171651399 equivalent to RMB 1120008214
(as at December 31 2019: USD 195420669 equivalent to RMB 1363293671) was the bank loans borrowed by the
subsidiary of the Company which was guaranteed by the letter of guarantee issued by the bank for the Company within the
scope of credit.As at December 31 2020 the bank guarantee loan amounting to RMB 1201026819 (as at December 31 2019: 0) was
the bank loans borrowed by the Company with joint and several liability repayment guarantee provided by its subsidiaries.
(2) Overdue outstanding short-term borrowings
□Applicable √Not applicable
The important overdue outstanding short-term borrowings are as follows:
□Applicable √Not applicable
Other description
□Applicable √Not applicable
33 Held-for-trading financial liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31 2019 December 31 2020
period period
Held-for-trading financial
liabilities119
Increase in current Decrease in current
Item December 31 2019 December 31 2020
period period
Financial liabilities measured
at fair value through the
current profit or loss
Derivative financial liabilities 7312741 458882
Total 7312741 458882
Other description:
□Applicable √Not applicable
34 Derivative financial liabilities
□Applicable √Not applicable
35 Notes payable
(1) Presentation of notes payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Type December 31 2020 December 31 2019
Commercial acceptance bill
Bank acceptance bill 3600725892 3420945451
Total 3600725892 3420945451
The total amount of notes payable due and unpaid at the end of the period was RMB 0.36 Accounts payable
(1) Presentation of accounts payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Payables for material purchase and product
manufacturing 7293306336 7095705902
Equipment and vessel purchase payables 236939531 361370347
Quality guarantee deposit payable 203484597 352114025
Infrastructure payables 36176452 55685497
Port charge payable 3996231 4502594
Total 7773903147 7869378365
(2) Important accounts payable aging over 1 year
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Aging analysis of accounts payable is as follows:
2020 2019
Proportion in total Proportion in total
Amount Amount
amount% amount%
Within 1 year 6313738368 81 6173075498 78
Over 1 year 1460164779 19 1696302867 22
Total 7773903147 100 7869378365 1001202020
As at December 31 2020 the accounts payable with the aging over 1 year were mainly the payables for imported parts
which had not been taken for final settlement.37 Advances from customers
(1) Presentation of advances from customers
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Advances from customers for goods (i) - -
Advances for lease payment 4893675 166750428
Total 4893675 166750428
(i) The advances from customers for goods in this year shall be accounted as contract liabilities after the implementation
of new revenue standard.
(2) Important advances from customers with the aging over 1 year
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Aging analysis of advances from customers is as follows:
2020 2019
Proportion in Proportion in total
Amount Amount
total amount% amount%
Within 1 year 4893675 100 728030570 88
Over 1 year - - 94957416 12
Total 4893675 100 822987986 100
38 Contract liabilities (Applicable from January 1 2020)
(1) Particulars about contract liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Advances from customers for goods 10747054468 9407248317
Amount settled for uncompleted work 448254615 333571365
Total 11195309083 9740819682
(2) Amount of and reason for significant changes in book value during the reporting period
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
In the current year the products corresponding to the advances from customers for goods by the Group have not been
delivered resulting in an increase in the book value of contract liabilities.39 Payroll payable
(1) Presentation of payroll payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31 2019 December 31 2020
period period
I. Short-term compensation 329928711 1814781525 1955910267 188799969121
Increase in current Decrease in current
Item December 31 2019 December 31 2020
period period
II. Post-employment benefits -
defined contribution plans 49570 219730336 219779906 -
III. Dismissal benefits
IV. Other benefits due within
one year
Total 329978281 2034511861 2175690173 188799969
(2) Presentation of short-term compensation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31 2019 December 31 2020
period period
I. Salaries bonuses allowances
and subsidies 293726618 1456926078 1597165890 153486806
II. Employee welfare 15537 58302543 58318080
III. Social insurance premium 30589 111962438 111984923 8104
Including: medical insurance
premium 25794 97829362 97847862 7294
Work-related injury insurance
premium 2118 4535010 4537128
Maternity insurance premium 2677 9598066 9599933 810
IV. Housing provident funds 20539 147698483 147710962 8060
V. Union expenditures and
employee education expenses 36135428 27337248 28175677 35296999
VI. Short-term paid absence
VII. Short-term profit sharing plan
VIII. Other short-term
compensation 12554735 12554735
Total 329928711 1814781525 1955910267 188799969
(3) Presentation of defined contribution plans
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in Decrease in
Item December 31 2019 December 31 2020
current period current period
1. Basic endowment insurance premium 48140 126565169 126613309
2. Unemployment insurance premium 1430 855312 856742
3. Enterprise annuity payment
4. Supplementary endowment insurance
premium 92309855 92309855
Total 49570 219730336 219779906
Other description:
□Applicable √Not applicable1222020
40 Tax payable
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
VAT 31497623 19182496
Consumption tax
Sales tax
Enterprise income tax 85855884 84488181
Individual income tax 11361113 14648581
Urban maintenance and construction tax 1397325 445032
Education surtax 1295006 381574
Others 29375980 25360878
Total 160782931 144506742
Other description:
Not applicable
41 Other payables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Interest payable
Dividends payable 352598 31701965
Other payables 480713102 679688031
Total 481065700 711389996
Other description:
□Applicable √Not applicable
Interest payable
(1) Presentation by category
□Applicable √Not applicable
Dividends payable
(2) Presentation by category
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Common stock dividends
Preferred stock/perpetual debt dividends classified as
equity instruments
Preferred stock/perpetual debt dividends-XXX
Preferred stock/perpetual debt dividends-XXX
Dividends payable - CCCC Tianjin Dredging Co. Ltd. 25079494
Dividends payable - Chuwa Bussan Co. Ltd. 6269873
Dividends payable - Hong Kong Zhenhua Engineering
Co. Ltd. 346005 346005123
Item December 31 2020 December 31 2019
Dividends payable - Macau Zhenhua Harbour
Construction Co. Ltd. 6593 6593
Total 352598 31701965
Other explanations including important dividends payable that have not been paid for more than one year the reasons
for non-payment shall be disclosed:
As at December 31 2020 the reason for the dividend payable with the aging over 1 year amounting to RMB 352598 (as
at December 31 2019: RMB 31701965) was that the shareholders of the Company had not requested for actual payment
by the Group.Other payables
(1) Other payables presented by nature
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Engineering deposit and quality guarantee deposit 230926693 227040148
Investment section payable to CCCC (i) 100971833
Amounts due to related parties 84675989 77381454
Special payables 16022785 16971821
Others 149087635 257322775
Total 480713102 679688031
(2) Important other payables with the aging over 1 year
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
(i) The Group completed the cancellation of a subsidiary in 2011. RMB 25971833 in the balance was the investment
liquidation fund payable by the Group and attributable to CCCC who was another shareholder of the subsidiary; meanwhile
the Group completed the merger and acquisition of the subsidiary of CCCC under the common control in 2015 and RMB
75000000 in the balance was the purchase fund payable by the Group to CCCC. As of December 31 2020 all relevant
payments have been completed.Aging analysis of other payables is as follows:
2020 2019
Amount Proportion % Amount Proportion %
Within 1 year 349708190 73 501239668 74
Over 1 year 131004912 27 178448363 26
Total 480713102 100 679688031 100
As at December 31 2020 the other payables with the aging over 1 year were mainly the payable deposit and quality
guarantee deposit collected from outsourcing engineering team and payables to related party.42 Liabilities held for sale
□Applicable √Not applicable
43 Non-current liabilities due within one year
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Long-term borrowings due within one year 914366451 6533318585
Bonds payable due within one year1242020
Item December 31 2020 December 31 2019
Long-term payables due within one year 460098868 754165928
Lease liabilities due within one year
Total 1374465319 7287484513
Other description:
None
44 Other current liabilities
Other current liabilities
□Applicable √Not applicable
Increase or decrease of short-term bonds payable:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
45 Long-term borrowings
(1) Classification of long-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Pledged borrowings 1947736154 1420127942
Mortgage borrowings
Guaranteed borrowings 797215505 3689523034
Fiduciary borrowings 15019714534 9837007595
Less: Long-term borrowings due within one
year
Fiduciary borrowings -239762214 -2966074277
Guaranteed borrowings -470970505 -3219523034
Pledged borrowings -203633732 -347721274
Total 16850299742 8413339986
Description of the classification of long-term borrowings:
None
Other description including interest rate range:
√Applicable □Not applicable
As at December 31 2020 the annual interest rate on the aforesaid borrowings ranges from 1.20% to 5.46% (as at
December 31 2019: 2.95% to 5.46%).(i) As at December 31 2020 the bank guarantee loan amounting to USD 50000000 equivalent to RMB 326245000 (as
at December 31 2019: USD 50518682 equivalent to RMB 352428432) was the bank loan borrowed by the Company's
subsidiary Shanghai Zhenhua Port Machinery (Hong Kong) Co. Ltd. and the guarantee was provided by the Company. The
interest shall be paid quarterly and the principal shall be repaid on July 10 2023.As at December 31 2020 the bank guarantee loan amounting to RMB 470970505 (as at December 31 2019: RMB
1973532215) was the bank loan borrowed by the Company. The Company’s subsidiary ZPMC Port Machinery General
Equipment Co. Ltd. provided the joint and several liability repayment guarantee. The interest shall be paid quarterly and the
principal will be due on November 10 2021.(ii) As at December 31 2020 the total amount of multiple pledged loans amounting to RMB 1947736154 (as at
December 31 2019: RMB 1420127942) took the long-term accounts receivable of the “building-transfer” project of the
Group as pledge. The interest shall be paid quarterly and the principal shall be repaid between July 29 2021 and August 27
2033 (as at December 31 2019: the principal shall be repaid between December 15 2020 and December 23 2029).125
46 Bonds payable
(1) Bonds payable
□Applicable √Not applicable
(2) Increase or decrease of bonds payable: (excluding preferred shares perpetual bonds and other financial instruments
classified as financial liabilities)
□Applicable √Not applicable
(3) Conditions and time for conversion of convertible bonds
□Applicable √Not applicable
(4) Description of other financial instruments classified as financial liabilities
Basic information of outstanding preferred shares perpetual bonds and other financial instruments at the end of the
period
□Applicable √Not applicable
Changes in outstanding preferred shares perpetual bonds and other financial instruments at the end of the period
□Applicable √Not applicable
Description of the basis for classifying other financial instruments as financial liabilities:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
47 Lease liabilities
□Applicable √Not applicable
48 Long-term payables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Long-term payables
Special payables
Leaseback financing fund (i) 1807890037 2250543212"Building - transfer” project fund (ii) 139682456 139682457
Project quality guarantee deposit 145284307 105885895
Less: Leaseback financing fund due within one
year -460098868 -754165928
Total 1632757932 1741945636
Other description:
√Applicable □Not applicable
(i) As at December 31 2020 the long-term payables of RMB 1807890037 (December 31 2019: RMB 2250543212)
were obtained from the vessel with the book value of RMB 2821018550 (as at December 31 2019: vessels of RMB
5439133909 machinery equipment of RMB 255113376) in leaseback way from the financial leasing company with
the maturity date from December 5 2021 to September 24 2031 (December 31 2019: from April 11 2020 to September
24 2031). The Group will pay the leaseback financing fund on schedule each year to the financial leasing company in
accordance with the contract terms. The Group takes the above series of transactions as mortgage loans for accounting
treatment.(ii) The Group and the construction party of “building-transfer” project agreed that part of the project payments would be
paid to the construction party after the final acceptance of the “building-transfer” project within a certain term.Long-term payables
(1) Presentation of long-term payables by nature
□Applicable √Not applicable
Special payables
(2) Presentation of special payables by nature
□Applicable √Not applicable
49 Long-term payroll payable
□Applicable √Not applicable1262020
50 Estimated liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2019 December 31 2020 Causes
External guarantee
Pending litigation
Product quality guarantee deposit
Restructuring obligations
Loss contracts to be executed
Refund payable
Estimated after-sale service cost 481342622 261072318
Others 2658150
Total 484000772 261072318 /
Other description including relevant important assumptions and estimates of important estimated liabilities:
None
51 Deferred income
Deferred income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in Decrease in
Item December 31 2019 December 31 2020 Causes
current period current period
Government subsidies 360656713 66115003 73932916 352838800
Land compensation 98065866 62148665 35917201
Total 458722579 66115003 136081581 388756001 /
As at December 31 2020 liability items involved in government subsidies:
√Applicable □Not applicable
Unit: Yuan Currency:CNY
Amount
New included Amount
subsidy in non- included
Liability item December amount operating in other Other December 31 Assets related / 31 2019 in current income income changes 2020 income related
period in current in current
period period
Hoisting and pipe laying
ship R&D project 47450000 47450000 Income related
Automated dock R&D
project 37455000 -9405000 28050000 Income related
Offshore deep water
environmental protection
intelligent fishing ground 20000000 20000000 Income related
construction project in
Fujian
Intelligent transportation
system of Automatic 16800000 16800000 Income related
navigation vehicle127
Amount
New included Amount
December subsidy in non-
included
Liability item amount operating in other Other December 31 Assets related / 31 2019 in current income income changes 2020 income related
period in current in current
period period
Deep sea drilling ship
and auxiliary equipment 14860000 1340000 16200000 Income related
research project
Research and
demonstration project of
crane boom structure and its 16000000 -800000 15200000 Income related
test with low cost and large
bearing capacity at sea
Intelligent manufacturing
workshop for crane box of 14171796 14171796 Income related
automated terminal
Key technology research
project of bottom-
supported offshore wind 12400000 12400000 Income related
power installation platform
10000t semi-submerged
ship R&D project 12506667 -560000 11946667 Income related
Comprehensive
standardization of
intelligent manufacturing 11700000 11700000 Income related
of marine engineering
equipment
High skill training facilities
and equipment funding 10964700 10964700 Income related
project
Transportation
emplacement system 10000000 10000000 Income related
R&D project
Floating crane R&D
project 12659000 -2740400 9918600 Income related
Architecture design and
testing tools development
of the next generation
of intelligent operation 11210000 -1600000 9610000 Income related
platform for automated
container terminals
Drilling platform R&D
project 9390000 9390000 Income related
Research and
development of large-
scale underwater robot 8533000 -432000 8101000 Income related
work-system
Manufacturing process
optimization R&D project in 8000000 8000000 Income related
marine engineering field
R&D and application
demonstration project
for the intelligent coating
system of the main 8000000 8000000 Income related
structure of large port
machinery1282020
Amount
New included Amount
December subsidy in non-
included
Liability item amount operating in other Other December 31 Assets related / 31 2019 in current income income changes 2020 income related
period in current in current
period period
Self-elevating platform
central control system 6190000 6190000 Income related
Retractable boarding
trestle system R&D 4448300 1551700 6000000 Income related
project
Unmanned driving
technology piercing and
intelligent group control 5850000 5850000 Income related
system project
Development and
industrialization of large
deep water crane piping 5572000 5572000 Income related
ship
Marine engineering
positioning system R&D 4472885 4380000 -3423391 5429494 Income related
project
Collaborative innovation
in the industrial chain of
core components for high- 2100000 1050000 3150000 Income related
end marine engineering
equipment
Key technology research
and development system
integration and application 2985000 2985000 Income related
of intelligent horizontal
transport vehicle
Finishing intelligent
production line of special
gear shaft for port 2560000 2560000 Income related
machinery
Research and application
of key technologies for
intelligent maintenance
system for automatic 3280000 -800000 2480000 Income related
container handling
equipment
Intelligent manufacturing
line for crane box 2280000 2280000 Income related
Design and manufacturing
technology of stinger
for deepwater subsea 2400000 -288000 2112000 Income related
pipeline laying system
Soft set hybrid cloud
system construction project
of the Economic and 1990000 1990000 Income related
Information Technology
Commission in 2019
Research on the
technology and application
of marine environmental 3960000 -2110000 1850000 Income related
protection coatings129
Amount
New included Amount
subsidy in non- included
Liability item December amount operating in other Other December 31 Assets related / 31 2019 in current income income changes 2020 income related
period in current in current
period period
Port outdoor trackless
navigation heavy load 4070000 -2320000 1750000 Income related
project
Automatic transfer
equipment and supporting 1540000 1540000 Income related
technology
Research on the heave
motion compensation 1088000 1088000 Income related
technology of mining pipe
Intelligent transportation
equipment and supporting
technology for multimodal 990000 990000 Income related
transportation
Research and introduction
of key technologies for
three-dimensional VOCs 1600000 -640000 960000 Income related
observation traceability
and near-zero emission
Industrial Internet based
on Beidou time and space 760500 760500 Income related
benchmark service
AGV Eight-wheel 180
degree rotary electric 860000 -160000 700000 Income related
differential AGV
Development of HIL
test platform for key
control system of marine 500000 500000 Income related
engineering ships
Precise shape control
performance control
manufacturing and
assembly technology 200000 200000 Income related
for high-speed precision
heavy duty herringbone
gear
Special equipment
research project for the
construction of immersed 180000 180000 Income related
tube tunnel of Shenzhen-
Zhongshan Access
Development of intelligent
operation system for 144123 144123 Income related
dredging vessel
Multi-method integration
technology development
and demonstration 126000 126000 Income related
application project for
innovation chain
Two ISO international
standards development 60000 60000 Income related
projects approved in 20181302020
Amount
New included Amount
December subsidy in non-
included
Liability item 31 2019 amount operating
in other Other December 31 Assets related /
in current income income changes 2020 income related
period in current in current
period period
Intelligent equipment for
container yard 1245000 -1245000 Income related
Others 68133065 6764980 -38784960 -8624165 27488920 Income related
Total 360656713 66115003 -56158751 -17774165 352838800
Other description:
√Applicable □Not applicable
Remark 1: the government subsidies of RMB 556923 and land compensation of RMB 60448960 in decreases in this
year was due to the change of consolidation scope.The above government subsidies are related to income.Land compensation refers to the land compensation acquired by a subsidiary of the Company which shall be amortized
over the 50 years’ land use term.52 Other non-current liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Contract liabilities
Output tax to be carried forward 430372502 376626821
Total 430372502 376626821
Other description:
On balance sheet date the revenue of some construction contracts and interest income of “building-transfer” projects of
the Company had not reached the time point of the VAT liability.53 Share capital
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase/decrease (+/-)
December 31 Conversion
2019 New shares Share Sub- December 31 of reserves Others
issued donation total 2020
into share
Total shares 5268353501 5268353501
Other description:
None
54 Other equity instruments
(1) Basic information of outstanding preferred shares perpetual bonds and other financial instruments at the end of the
period
√Applicable □Not applicable
As of December 31 2020 the details of the Group’s outstanding perpetual bonds are as follows:
Accounting Issue Maturity or
Date of issue Interest rate Number Amount
classification price renewal
Perpetual medium-
term notes131
Accounting Issue Maturity or
Date of issue Interest rate Number Amount
classification price renewal
Second issue
of medium-term
notes of Shanghai December 24 Equity
Zhenhua Heavy 2020 instrument 5.06% 100 5000000 500000000 Undue
Industries Co. Ltd.in the year 2020
The Group issued the perpetual notes on December 24 2020 with a term of 2+N (2) years which will survive for a
long time before the Group redeems in accordance with the terms of issue and will mature when the issuer redeems in
accordance with the terms of issue. The initial coupon of perpetual notes is 5.06%. In accordance with the terms of issue
of medium-term notes the Company has the right to distribute cash interest annually at annual interest rate and has no
contractual obligation to repay the principal or pay any interest free of charge. Except for compulsory interest payment
on each interest payment date of medium-term notes the Group may at its own option postpone the payment of current
interest and all deferred interest and its fruits in accordance with this clause to the next interest payment date and is not
limited by the number of deferred interest payments. On the reset date of the coupon rate of medium-term notes the
Company has the right to redeem the medium-term notes at face value plus interest payable (including all deferred interest
payments). The Group deems that the notes do not meet the definition of financial liabilities and therefore classifies it as
other equity instruments.
(2) Changes in outstanding preferred shares perpetual bonds and other financial instruments at the end of the period
√Applicable □Not applicable
Increase in current Decrease in current
Outstanding Beginning Endingperiod period
financial
instruments Book Book Amount Amount Book value Amount Amount Book value
value value
Second issue
of medium-term
notes of Shanghai
Zhenhua Heavy 5000000 500000000 5000000 500000000
Industries Co. Ltd. in
the year 2020
Total 5000000 500000000 5000000 500000000
Description of the increase and decrease of other equity instruments in the current period reasons for changes and
basis for relevant accounting treatment:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
55 Capital reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase in Decrease in
Item December 31 2019 December 31 2020
current period current period
Capital premium (Share capital
premium) 4537774553 4537774553
Other capital reserves
Business combination under common
control -16203111 -16203111
Purchase of minority interest -711345 -711345
Absorption of minority shareholders’
investments by subsidiaries 185934674 1859346741322020
Increase in Decrease in
Item December 31 2019 December 31 2020
current period current period
Transfer-in of capital reserves under
the original system 128059561 128059561
Total 4834854332 4834854332
Other description including the increase and decrease in the current period and the reasons for changes:
None
56 Treasury stock
□Applicable √Not applicable
57 Other comprehensive income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the current period
Less: amount Less: amount
previously previously
included in included in
December 31 the other the other Attributable
Attributable
Item December 2019 Pre-tax amount comprehensive comprehensive Less: to the parent
to the
31 2020
income and income and income tax company minority
currently currently after tax equity after
transferred to transferred tax
the profit or to retained
loss earnings
I. Other
comprehensive
income that can't -13860957 -475517 -71328 -404189 -14265146
be reclassified into
profit and loss
Including: Remeasure
the variation of net
indebtedness or
net asset of defined
benefit plan
Other comprehensive
income that can't
be reclassified into
profit and loss in the
invested enterprise
under equity method
Fair value change of
other equity instrument -13860957 -475517 -71328 -404189 -14265146
investments
Fair value change of
enterprise credit risks
II. Other
comprehensive
income that will be 37391408 -108841187 -86053660 -22787527 -48662252
reclassified into
profit and loss
Including: Other
comprehensive
income that will be
reclassified into -9051692 -28663890 -28663890 -37715582
profit and loss in the
invested enterprise
under equity method
Fair value change of
other debt investments
Amount of financial
assets reclassified into
other comprehensive
income
Provision for credit
impairment of other
debt investments
Cash flow hedging
reserve133
Amount incurred in the current period
Less: amount Less: amount
previously previously
included in included in
December 31 the other the other Attributable
Attributable
Item to the December 2019 Pre-tax amount comprehensive comprehensive Less: to the parent 31 2020income and income and income tax company minority
currently currently after tax equity after
transferred to transferred tax
the profit or to retained
loss earnings
Translation reserve 46443100 -80177297 -57389770 -22787527 -10946670
Total other
comprehensive 23530451 -109316704 -71328 -86457849 -22787527 -62927398
income
Other description including the adjustment of the initial recognition amount of the effective part of profit or loss of cash
flow hedging converted into the hedged item:
None
58 Special reserves
√Applicable □Not applicable2020
Unit: Yuan Currency: CNY
Increase in current Decrease in current
Item December 31 2019 December 31 2020
period period
Work safety expenses 3615638 82412828 84092313 1936153
Total 3615638 82412828 84092313 19361532019
December 31 2019 Increase Decrease December 31 2020
Work safety expenses 3019173 71228319 (70631854) 3615638
Other description including the increase and decrease in current period and the reasons for changes:
According to the relevant requirements of the Administrative Measures for the Withdrawal and Use of Work Safety
Expenses the enterprises engaged in large - scale machinery manufacture and engineering construction shall withdraw the
work safety expenses according to the standards. The increase and decrease in current year was the work safety expenses
withdrawn and used by the Group for the reporting year in accordance with relevant requirements.59 Surplus reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Balance at the Changes in Increase
December 31 Decrease in December 31
Item end of the last accounting in current
2019 current period 2020
year policies period
Statutory surplus reserves 1468820041 -143572545 1325247496 33792383 1359039879
Discretionary surplus
reserves 292378668 - 292378668 292378668
Reserve fund
Enterprise development
fund
Others
Total 1761198709 -143572545 1617626164 33792383 1651418547
Description of surplus reserves including the increase and decrease in current period and the reasons for changes:1342020
In accordance with the Company Law of the People Republic of China the Company’s Article of Association and the
resolutions of the Board of Directors the Company withdrew 10% of its net profit as statutory surplus reserves. When the
accumulated amount of statutory surplus reserves reaches 50% or more of the share capital the Company can stop the
withdrawal.The statutory surplus reserves can be used to compensate loss upon approval or to increase share capital. The
statutory surplus reserves withdrawn by the Company amounted to RMB 33792383 in 2020 (2019: RMB 64436155).60 Undistributed profits
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Current period Previous period
Undistributed profits at the end of previous period before adjustment 3651851383 3344953206
Total undistributed profits at the beginning of the adjustment period
(increase + decrease -) -1399694619 119821864
Undistributed profits at the beginning of the period after adjustment 2252156764 3464775070
Plus: Net profit attributable to owners of the parent company 422240299 514930143
Less: withdrawal of statutory surplus reserves 33792383 64436155
Withdrawal of discretionary surplus reserve
Withdrawal of general risk preparation
Common stock dividends payable 263417675 263417675
Common stock dividends converted to share capital
Undistributed profits at the end of the period 2377187005 3651851383
Details of undistributed profit at the beginning of adjustment period:
1. Due to the retroactive adjustment of Accounting Standards for Business Enterprises and related new regulations the
impact on undistributed profits at the beginning of the period was RMB 0.2. The impact of changes in accounting policies on undistributed profits at the beginning of the period was RMB -1399694619.3. The impact of correction of major accounting errors on undistributed profits at the beginning of the period was RMB 0.4. The impact of change of consolidation scope caused by the common control on undistributed profits at the beginning
of the period was RMB 0.5. The total impacts of other adjustment on undistributed profits at the beginning of the period were RMB 0.61 Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary business 22396639375 19305124813 24212854752 20419043031
Other business 258502277 108140441 382733131 171488291
Total 22655141652 19413265254 24595587883 20590531322
Primary business revenue and cost are presented as below:
2020 2019
Primary business Primary business Primary business Primary business
revenue cost revenue cost
Port machinery 14457042916 11813606078 16458563164 13240912286
Heavy equipment 1062669195 994642219 1491597749 1218182031
"Building-transfer" project and
engineering construction 2365760874 2220603949 2564145018 2428961159135
2020 2019
Primary business Primary business Primary business Primary business
revenue cost revenue cost
Steel structures and related revenue 3277507651 3170269443 2709430977 2571473994
Vessel shipping and others 1233658739 1106003124 989117844 959513561
Total 22396639375 19305124813 24212854752 20419043031
Other business revenue and cost are presented as below:
2020 2019
Other business Other business
Other business cost Other business cost
revenue revenue
Sales of materials 71730251 68201530 84343163 76180525
Equipment leasing and others 186772026 39938911 298389968 95307766
Total 258502277 108140441 382733131 171488291
(2) Details of operating revenue
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Operating revenue 22655141652 /
Less: business income unrelated to primary business 258502277 /
Less: income without commercial substance /
Operating revenue after deducting the business income unrelated
to primary business and the income without commercial substance 22396639375 /
(3) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Classification of Contract XXX-Division Total
Type of goods
Port machinery 14457042916
Steel structures and related revenue 3277507651
"Building-transfer" project and engineering construction 2365760874
Heavy equipment 1062669195
Vessel shipping and others 966389544
Sales of materials and others 183277589
By region of operation
Chinese Mainland 12861392242
Europe 2604103174
Asia (excluding Chinese Mainland) 3289553492
North America 1345494819
Chinese Mainland (export sales) 1061063332
Africa 468958316
South America 444522956
Oceania 237559438
Market or customer type
Contract type1362020
Classification of Contract XXX-Division Total
Revenue recognized at a certain point of time
Port machinery 14457042916
Heavy equipment 1062669195
Steel structure and related income 1704177499
Sales of materials and others 547116273
Revenue recognized in a certain period of time
“Building-transfer” project and engineering construction 2365760874
Steel structure and related income 1573330152
Shipping 602550860
By time of goods transfer
By contract term
By sales channel
Total 22312647769
Description of income from contracts:
□Applicable √Not applicable
(4) Performance obligations
√Applicable □Not applicable
The information about the performance obligations of the Group is as follows:
Sales of port machinery heavy equipment and steel structure products
The Group performs its obligations when delivering port machinery to customers and obtaining pre-delivery certificate
or other relevant delivery certificates. The Group performs its obligations when delivering heavy equipment to customers and
obtaining the handover protocol or other relevant delivery certificate. For the steel structure product manufacturing contract
that meets the performance obligations within a certain period of time the Group performs its performance obligations within
the time of transferring the steel structure product; for the steel structure product manufacturing contract that does not meet
the performance obligation within a certain period of time the Group performs its performance obligations when the steel
structure product is delivered and signed by the owner. The contract price is usually paid according to the payment schedule
agreed in the contract. After the delivery of the goods the customer usually retains a certain proportion of the quality
guarantee deposit which is usually paid after the expiration of the quality guarantee period. The Group provides guaranteed
warranty for the above products.Building services
The Group performs its performance obligations within the time of providing services and the contract price is usually
paid within 30 days after the settlement of the project. The customer usually retains a certain proportion of the quality
guarantee deposit which is usually paid after the expiration of the quality guarantee period.Shipping services
The Group performs its performance obligations within the time of providing transportation services. The contract price
is usually paid within the period from 3 days before unloading to 30 days after unloading.
(5) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
The revenue recognized in the current year and included in the book value of contract liabilities at the beginning of the
year is as follows:2020
Advances from customers for goods 5570531698
Amount settled for uncompleted work 289457020
Total 5859988718
The revenue recognized in the current year for the performance obligations that have been performed (or partially
performed) in the previous period is as follows:1372020
“Building-transfer” project and engineering construction 2208312044
Steel structure and related income 69275266
Total 2277587310
62 Taxes and surcharges
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Consumption tax
Sales tax
Urban maintenance and construction tax 10671136 5291413
Educational surtax 8659201 4625393
Resource tax
Housing property tax 45516534 52880028
Land use tax 20586848 24137152
Vehicle and vessel use tax
Stamp duty 17975543 16163330
Others 2869009 4931365
Total 106278271 108028681
Other description:
None
63 Selling and distribution expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensation 72513095 74574647
Travel expenses 9813222 20877895
Advertising and publicity costs 5750174 6112880
Sales and service fees 3639283 6028717
Bidding and tendering expenses 2474607 4381065
Exhibition fees 2363964 2028918
Office expenses 2352391 1854211
Others 6856903 6658703
Total 105763639 122517036
Other description:
None
64 General and administrative expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensation 447298395 5748753801382020
Amount incurred in the Amount incurred in the
Item
current period previous period
Amortization of intangible assets 95379020 98274728
Depreciation of fixed assets 76563986 78096567
Travel expenses 59283191 79287298
Office expenses 53476219 66065944
Expenses from employment of intermediaries 48556452 26042989
Management and security fees 23042397 23138964
Management and cleaning fees 15830539 14822114
Consulting fees 13457793 16504530
Informatization expenses 12013428 12571622
Entertainment expenses 11040364 14982731
Insurance expenses 8970976 13347013
Maintenance cost 6972417 6151691
Others 65815662 70969716
Total 937700839 1095131287
Other description:
Not applicable
65 Research and development expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Employee compensation 391087521 422157374
Processing expenses 105358575 173591786
Depreciation expenses 92450574 133479779
Materials expenses 82490115 97624849
Product design expenses 1046746 5968051
Others 65034606 54274339
Total 737468137 887096178
Other description:
None
66 Financial expenses
√Applicable □Not applicable
Unit: Yuan Currency:CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Interest expenses 1396776727 1746843552
Less: Capitalized amount of interest -53531666 -44551183
Less: interest income -369113644 -331452183
Exchange losses 85689295 15933055
Others 57921152 109813173
Total 1117741864 1496586414139
Other description:
The capitalized amounts of borrowing costs have been included in the construction in progress.67 Other income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Fiscal appropriation (i) 72103587 68173798
Technological subsidy (ii) 19425763 17850797
Land compensation (iii) 1698701 2434993
Total 93228051 88459588
Other description:
(i) and (ii) are related to income while (iii) is related to assets.68 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity investment calculated under the equity
method 138892946 110724316
Investment income from disposal of long-term equity investment 27195895
Investment income from held-for-trading financial assets during the
holding period 45769202 63766921
Dividend income from other equity instrument investment during holding 6171983
Interest income from debt investment during holding
Interest income from other debt investment during holding
Investment income from disposal of held-for-trading financial assets 195487757 109315
Investment income from disposal of other equity instrument investment
Investment income from disposal of debt investment
Investment income from disposal of other debt investment
Total 413517783 174600552
Other description:
None
69 Net exposure hedging gain
□Applicable √Not applicable
70 Income from fair value change
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Sources of income from fair value change
current period previous period
Held-for-trading financial assets
Including: income from fair value change of derivative financial
instruments1402020
Amount incurred in the Amount incurred in the
Sources of income from fair value change
current period previous period
Stock investment of listed companies 93856832 117579147
Derivative financial instruments - Forward exchange contract 7312741 -44481806
Derivative financial instruments - Foreign exchange option contract -11264555 22235244
Held-for-trading financial assets
Including: Derivative financial instruments - Forward exchange
contract -7312741
Investment property measured at fair value
Other non-current financial assets 4267438
Total 94172456 88019844
Other description:
None
71 Credit impairment loss
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Loss on bad debts of notes receivable
Loss on bad debts of accounts receivable 137464618 36235314
Loss on bad debts of other receivables 618943 2526279
Loss on impairment of debt investment
Loss on impairment of other debt investment
Loss on bad debts of long-term receivables
Loss on impairment of contract assets
Total 138083561 38761593
Other description:
None
72 Assets impairment losses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
I. Bad debt loss
II.Loss on price falling of inventory and impairment loss of contract
performance costs 164106800 -71619476
III. Impairment loss of long-term equity investment
IV. Impairment loss of investment property
V. Impairment loss of fixed assets
VI. Impairment loss of engineering materials
VII. Impairment loss of construction in progress
VIII. Impairment loss of productive biological assets
IX. Impairment loss of oil and gas assets
X. Impairment loss of intangible assets
XI. Goodwill impairment loss141
Amount incurred in the Amount incurred in the
Item
current period previous period
XII. Others
XIII. Impairment loss of contract assets 49540423
XIV. Estimated contract losses 124113760
Total 213647223 52494284
Other description:
None
73 Income from disposal of assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from disposal of fixed assets 6755688 49091913
Total 6755688 49091913
Other description:
None
74 Non-operating income
Non-operating income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount Amount included in
Amount incurred in the
Item incurred in the non-recurring profit or
current period
previous period loss in current period
Total gains from disposal of non-current assets
Including: gains from disposal of fixed assets
Gains from disposal of intangible assets
Gains from debt restructuring
Gains from exchange of non-monetary assets
Accepting donations
Government subsidies 4620975 4812392 4620975
Revenue from insurance indemnity 60000
Others 12716524 11590318 12716524
Total 17337499 16462710 17337499
Government subsidies included in current profit or loss
□Applicable √Not applicable
Other description:
□Applicable √Not applicable1422020
75 Non-operating expenditure
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount included in
Amount incurred in the Amount incurred in the
Item non-recurring profit or
current period previous period
loss in current period
Total loss on disposal of non-current assets
Including: Loss on disposal of fixed assets
Loss on disposal of intangible assets
Loss on debt restructuring
Loss on exchange of non-monetary assets
Overdue fine payment 3139745 1213012 3139745
Amercement outlay 2080000 5535000 2080000
External donations 768149 128984 768149
Lawsuit compensation 21781220
Others 2010016 1545282 2010016
Total 7997910 30203498 7997910
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:
2020 2019
Used raw materials and low-cost consumables 21607174313 15704636157
Changes in goods in process and inventories (7257183881) -
Employee compensation 2034511861 2216065862
Depreciation and amortization expenses 1335173214 1330738630
Outsourcing expenses 1424619572 1378775266
Transportation expenses 576522583 589854221
On-site installation expenses 206431154 257412249
Rental fees 264369240 218357687
After-sale cost 260202215 240972483
Energy cost 216052124 216602224
Travel expenses 69096413 100165193
Office expenses 55828610 67920155
Expenses from employment of intermediaries 48556452 26042989
Informatization expenses 12013428 12571622
Entertainment expenses 11040364 14982731
Bidding and tendering expenses 2474607 2028918
Other expenses 327315600 318149436
Total 21194197869 22695275823143
76 Income tax expenses
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Current income tax expenses 84990560 72527877
Deferred income tax expenses 1080440 21222707
Total 86071000 93750584
(2) Accounting profit and income tax expenses adjustment process
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Amount incurred in the current period
Total profits 502206431
The income tax expenses calculated based on statutory/applicable tax rates 75330965
Influences caused by different tax rates adopted by subsidiaries 27065779
Influences caused by adjustment on income tax of previous periods
Influences on non-taxable income
Influences caused by non-deductible cost expenses and losses 3672781
Influences caused by non-confirmation of deductible losses of deferred income tax assets
Influences caused by non-confirmation of deductible temporary differences or deductible
losses in current period 54361762
Profit or loss attributable to joint ventures and associates -20833942
Tax-free income -12270940
Adjustment to final settlement in previous years 15130141
Use of deductible losses in previous years -21891855
Additional deduction of technological development expenses -34493691
Income tax expenses 86071000
Other description:
□Applicable √Not applicable
77 Other comprehensive income
□Applicable √Not applicable
78 Cash flow statement items
(1) Other cash received related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency:CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Customs deposit recovered 198238436 215598140
Cash received from government subsidies and rewards 117022985 99690746
Employee loan recovered 3248010 4949202
Cash received from the revenue from fines 11083645 7820315
Others 8697650 1708855
Total 338290726 3297672581442020
Description of other cash received related to operating activities：
None
(2) Other cash paid related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Customs deposit paid 193361873 190498482
Expenditures on selling and distribution expenses general and
administrative expenses and research and development expenses 231503637 480355112
Financial expenses and handling charges 45869065 72827220
Subsidy for research and development paid to cooperative units 17217242 6075000
Others 105577762 157753932
Total 593529579 907509746
Description of other cash paid related to operating activities :
None
(3) Other cash received related to investing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Interest income 337058520 267388460
Total 337058520 267388460
Description of other cash received related to investing activities:
None
(4) Other cash paid related to investing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Net cash outflows from disposal of subsidiaries 243269060
Others 22982499
Total 266251559
Description of other cash paid related to operating activities :
None
(5) Other cash received related to financing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Restricted bank deposits recovered 265853823 311887883
Loan recovered from related parties 343565000 -
Loan recovered from third parties 88783796 507447092
Total 698202619 819334975
Description of other cash received related to financing activities:
None145
(6) Other cash paid related to financing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Restricted bank deposits paid 384225265 265853823
L/G expenditures on overseas loan under domestic guarantee 7948606 27092719
Disinvestment by minority shareholders 141669170
Related-party loan repaid 539394461 864135544
Third-party loan repaid 336378260 86683488
Total 1409615762 1243765574
Description of other cash paid related to financing activities :
None
79 Further information on cash flow statement
(1) Further information on cash flow statement
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Current amount Previous amount
1. Reconciliation from net profits to cash flows from operating activities:
Net profit 416135431 497121613
Plus: provision for impairment of assets 213647223 52494284
Credit impairment loss 138083561 38761593
Depreciation of fixed assets oil and gas assets and productive
biological assets 1236902853 1227429642
Amortization of right to use assets
Amortization of intangible assets 98270361 103308988
Amortization of long-term deferred expenses
Losses on disposal of fixed assets intangible assets and other long-
term assets (gains expressed with “-”) -6755688 -49091913
Loss on retirement of fixed assets (gains expressed with “-”)
Loss from fair value change(gains expressed with “-”) -94172456 -88019844
Financial expenses(gains expressed with “-”) 888739777 1547048645
Investment losses (gains expressed with “-”) -413517783 -174600552
Decrease in deferred income tax assets (increase expressed with “-”) -15800832 66615331
Increase in deferred income tax liabilities (decrease expressed with “-”) 16881272 -45392624
Decrease in inventories (increase expressed with “-”) -3780048380 -3151985115
Increase in construction contract payment (increase expressed with “-”) -766839149 -531000142
Decrease in operating receivables (increase expressed with “-”) 288132036 440854132
Increases in operating payables (decrease expressed with “-”) 2601410279 1356072606
Others - -
Increase in special reserves (decrease expressed with “-”) -1679485 596465
Net cash flow from operating activities 819389020 1290213109
2. Significant investment and financing activities not involving cash deposit and withdrawal:
Conversion of debt into capital
Convertible bonds due within one year1462020
Item Current amount Previous amount
Fixed assets under financing lease
3. Net changes in cash and cash equivalents:
Ending balance of cash 2897742340 3068024976
Less: Beginning balance of cash 3068024976 3148987372
Plus: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net decrease of cash and cash equivalents -170282636 -80962396
Endorsement transfer of notes:
2020 2019
Endorsement transfer of bank acceptance bill received from sales of
goods and rendering of services 2339442721 3777188521
(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
Unit: Yuan Currency: CNY
Item Amount
Cash or cash equivalents received in current period from the disposal of subsidiaries in
current period
Less: Cash and cash equivalents held by the Company on the date of loss of control 243269060
Plus: Cash or cash equivalents received in current period from disposal of subsidiaries in
previous periods
Net cash received from disposal of subsidiaries -243269060
Other description:
None
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
I. Cash 2897742340 3068024976
Including: cash on hand 1063472 1469655
Bank deposit readily available for payment 2896678868 3066555321
Other monetary capital readily available for payment
Deposits with central bank available for payment
Deposits in other banks
Borrowings from other banks
II. Cash equivalents
Including: bond investment due within three months
III. Balance of cash and cash equivalents at the end of period
Including: restricted cash and cash equivalents of parent company
or subsidiaries within the Group
Other description:
□Applicable √Not applicable147
80 Notes to items in statement of owner's equity
State the name of "other" items and the amount of adjustment to the ending balance of previous year:
□Applicable √Not applicable
81 Assets with ownership or use rights restricted
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Book value at the end of the period Reason of restriction
Special payment collected for overseas project and
Monetary funds 50332396 deposited in overseas supervision account and the margin deposit deposited for applying to the bank for letter of
credit and bank guarantee (Remark 1)
Notes receivable
Inventories
Fixed assets 2821018550 Loan mortgage (Remark 2)
Intangible assets
Long-term receivables 5614309162 Loan mortgage (Remark 3)
Total 8485660108 /
Other description:
Remark 1: As at December 31 2020 other monetary funds including the restricted monetary fund of RMB 50332396
(as at December 31 2019: RMB 242272475) were the special payment collected for overseas project and deposited in
overseas supervision account and the margin deposit deposited by the Group for applying to the bank for letter of credit and
bank guarantee.Remark 2: As at December 31 2020 the vessel with the book value of RMB 2821018550 (December 31 2019: the
vessel of RMB 5439133909 and the mechanical equipment of RMB 255133376) had been used for leaseback with the
financial leasing company with the financing term of 3 - 12 years.Remark 3: As at December 31 2020 the long-term receivables of “building-transfer” project of RMB 5614309162
(December 31 2019: RMB 4482230928) were used as the pledge for obtaining bank loans.
82 Foreign currency monetary items
(1) Foreign currency monetary items
√Applicable □Not applicable
Unit: Yuan
Ending foreign Conversion exchange Ending balance
Item
currency balance rate converted into RMB
Monetary fund - -
Including: USD 284621149 6.5249 1857124535
EUR 21496911 8.0250 172512711
RUB 469178931 0.0877 41146992
KRW 5627507523 0.0060 33765045
ZAR 41730270 0.4458 18603354
GBP 847807 8.8903 7537259
INR 82319932 0.0888 7310010
AUD 712077 5.0163 3571992
AED 1661187 1.7761 2950434
BRL 1853351 1.2065 2236068
MYR 1314236 1.6173 2125514
SGD 374437 4.9314 18464991482020
Ending foreign Conversion exchange Ending balance
Item
currency balance rate converted into RMB
HKD 1531549 0.8416 1288952
LKR 32292562 0.0350 1130240
NZD 625 4.7050 2941
CAD 272 5.1161 1392
Accounts receivable - -
Including: USD 374387622 6.5249 2442841795
EUR 107941563 8.0250 866231043
AED 96858817 1.7761 172030945
QAR 30087793 1.7926 53935378
KRW 7719068270 0.0060 46314410
CAD 5547053 5.1161 28379278
GBP 1741378 8.8903 15481373
ZAR 29992419 0.4458 13370620
SGD 2255198 4.9314 11121283
SAR 6132536 1.7390 10664480
LKR 254249951 0.0350 8898748
HKD 7519443 0.8416 6328363
RUB 47976112 0.0877 4207505
INR 38282299 0.0888 3399468
AUD 623830 5.0163 3129318
Other receivables - -
Including: USD 9348737 6.5249 60999574
RUB 273019534 0.0877 23943813
AUD 2359498 5.0163 11835950
EUR 932593 8.025 7484059
ZAR 9029448 0.4458 4025328
LKR 110692230 0.035 3874228
INR 30626146 0.0888 2719602
KRW 147541759 0.006 885251
HKD 562294 0.8416 473227
OMR 4828 16.949 81830
SGD 6284 4.9314 30989
Accounts payable - -
Including: USD 174128625 6.5249 1136171865
EUR 43917097 8.0250 352434703
SGD 2267441 4.9314 11181659
GBP 580777 8.8903 5163282
JPY 74922247 0.0632 4735086
ZAR 9827538 0.4458 4381116
RUB 35112520 0.0877 3079368
HKD 725778 0.8416 610815
AUD 27427 5.0163 137582
LKR 3861701 0.0350 135160
CAD 22295 5.1161 114063149
Ending foreign Conversion exchange Ending balance
Item
currency balance rate converted into RMB
Other payables - -
Including: USD 17792515 6.5249 116094381
RUB 237855556 0.0877 20859932
EUR 31681 8.0250 254240
HKD 15000 0.8416 12624
Short-term borrowings - -
Including: USD 177060425 6.5249 1155301567
EUR 115017835 8.0250 923018126
Long-term borrowings - -
Including: USD 150000000 6.5249 978735000
Long-term payables due within one year - -
Including: USD 70514317 6.5249 460098868
Long-term payables - -
Including: USD 206561199 6.5249 1347791169
Other description:
None
(2) Description of overseas business entities including the disclosure of main overseas business locations recording
currency and selection basis for important overseas business entities as well as the reasons for changes in recording
currency
□Applicable √Not applicable
83 Hedging
□Applicable √Not applicable
84 Government subsidies
(1) Basic information of government subsidies
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount included in current
Type Amount Item
profit or loss
Fiscal appropriation unrelated to daily
activities/ fiscal appropriation 4620975 4620975
(2) Return of government subsidies
□Applicable √Not applicable
Other description:
Not applicable
85 Others
□Applicable √Not applicable
VIII. Changes in consolidation scope
1 Business combination not under common control
□Applicable √Not applicable1502020
2 Business combination under common control
□Applicable √Not applicable
3 Counter purchase
□Applicable √Not applicable
4 Disposal of subsidiaries
Whether there is single disposal of investment in subsidiaries i.e. loss of control:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Shareholding Proportion of voting Reasons for
Registration
Business nature ratio of the Group rights enjoyed by the not being a
place
(%) group in total (%) subsidiary
CCCC Tianhe
Mechanical Equipment
Manufacturing Co. Ltd Changshu City Machine Jiangsu Province manufacturing 32.51 55.98 Remark 1(hereafter referred to as
“CCCC Tianhe”)
Remark 1: On June 4 2020 CCCC an affiliated company controlled by the same parent company increased the investment
amounting to RMB 1000000000 to CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. the holding subsidiary of
the Company. On the same day CCCC signed the capital and share increase agreement with CCCC Tianjin Dredging Co. Ltd.(shareholder of the Company and CCCC Tianhe) and Chuwa Bussan Co. Ltd.; as stipulated in the agreement the persons acting
in concert agreement between CCCC and ZPMC was terminated. According to the latest articles of association of CCCC Tianhe
CCCC has the right to appoint all directors of CCCC Tianhe. Therefore on June 4 2020 the proportion of voting rights enjoyed
by CCCC was changed to 61.12% and the proportion of voting rights enjoyed by the Company was changed to 16.52% so the
Company no longer had control over CCCC Tianhe. Since June 4 2020 CCCC Tianhe would no longer be included into the
scope of combination of the Group but would be accounted as financial assets measured at fair value through current profit or
loss. Relevant financial information of CCCC Tianhe is listed as follows:
May 31 2020 December 31 2019
Book value Book value
Current assets 2748975021 2278000630
Non-current assets 2935704801 2838524895
Current liabilities (3649803130) (3456472738)
Non-current liabilities (1124687149) (645270749)
Total 910189543 1014782038
Less: Minority equity (614227994) (684876398)
Less: Fair value of remaining equity (325826619)
Gains from disposal 29865070
Disposal consideration -
From the beginning of the year to the disposal date
Operating revenue 283306846
Operating cost 166238694
Net loss (1224958)
5 Changes in consolidation scope due to other reasons
Description of the changes (such as new subsidiary liquidation of subsidiary) in consolidation scope due to other
reasons and relevant information:
□Applicable √Not applicable151
6 Others
□Applicable √Not applicable
IX. Interests in other entities
1 Interests in subsidiaries
(1) Subsidiaries of the Group:
√Applicable □Not applicable
Shareholding ratio (%)
Name of subsidiary Principal place of business Registration Business Way of place nature Direct Indirect acquisition
Shanghai Zhenhua Port Machinery Chongming Machine Establishment
Heavy Industries Co. Ltd. Chongming Shanghai Shanghai manufacturing 94.76% by investing
Shanghai Zhenhua Port Machinery Hong Kong Hong Kong Shipping 100.00% Establishment (Hong Kong) Co. Ltd. by investing
Shanghai Zhenhua Shipping Co. Ltd. Pudong New Area Shanghai Pudong New Establishment Area Shanghai Shipping 55.00% by investing
Nantong Zhenhua Heavy Equipment Nantong City Jiangsu Nantong City Jiangsu Machine Establishment Manufacturing Co. Ltd. Province Province manufacturing
100.00% by investing
ZPMC Transmission Machinery Nantong City Jiangsu Nantong
(Nantong) Co. Ltd. Province City Jiangsu
Machine 50.75% Establishment
Province manufacturing by investing
Electric
ZPMC Electric Co. Ltd. Pudong New Area Shanghai Pudong New equipment 100.00% Establishment Area Shanghai research and by investing
development
Shanghai Zhenhua Ocean Engineering Yangshan Bonded Port Area Yangshan Establishment
Service Co. Ltd Shanghai Bonded Port Shipping 100.00%Area Shanghai by investing
ZPMC Machinery Equipment Services
Co. Ltd. Pudong New Area Shanghai
Pudong New Technical Establishment
Area Shanghai consultancy 100.00% by investing
ZPMC Netherlands Co?peratie U.A. Rotterdam Netherlands Rotterdam Establishment Netherlands Trade sales 100.00% by investing
ZPMC Netherlands B.V. Rotterdam Netherlands Rotterdam Netherlands Trade sales 100.00%
Establishment
by investing
Business
Verspannen B.V. Rotterdam Netherlands Rotterdam Machine 100.00% combination not Netherlands manufacturing under common
control
ZPMC Espana S.L. Los Barrios Spain Los Barrios Establishment Spain Trade sales 100.00% by investing
ZPMC Italia S.r.l. Vado Ligure Port Italy Vado Ligure Port Italy Trade sales 100.00%
Establishment
by investing
ZPMC GmbH Hamburg Hamburg Germany Hamburg Germany Trade sales 100.00%
Establishment
by investing
ZPMC Lanka Company (Private)
Limited Colombo Sri Lanka
Colombo Sri
Lanka Trade sales 70.00%
Establishment
by investing
ZPMC North America Inc. Delaware USA Delaware USA Trade sales 100.00% Establishment by investing
ZPMC Korea Co. Ltd. Pusan Korea Pusan Korea Trade sales 100.00% Establishment by investing
Kwazulu-
ZPMC Engineering Africa (Pty) Ltd. Kwazulu-Natal Province Natal Province Republic of South Africa Republic of Trade sales 100.00%
Establishment
by investing
South Africa
ZPMC Engineering (India) Private Maharashtra Establishment
Limited Maharashtra State India State India Trade sales 100.00% by investing1522020
Registration Business Shareholding ratio (%)Name of subsidiary Principal place of business Way of place nature Direct Indirect acquisition
ZPMC Southeast Asia Holding Pte.Ltd. Singapore Singapore Trade sales 100.00%
Establishment
by investing
ZPMC Engineering (Malaysia) Sdn. Establishment
Bhd. Malaysia Malaysia Trade sales 70.00% by investing
ZPMC Australia Company (Pty) Ltd. New South Wales Australia New South Establishment Wales Australia Trade sales 100.00% by investing
Shanghai Zhenhua Heavy Industries Business
Port Machinery General Equipment Pudong New Area Shanghai Pudong New Machine combination
Co. Ltd. Area Shanghai manufacturing
100.00% under common
control
Business
Shanghai Port Machinery Heavy Pudong New Area Shanghai Pudong New Machine combination Industry Co. Ltd Area Shanghai manufacturing 74.02% under common
control
Business
ZPMC Zhangjiagang Port Machinery Zhangjiagang City Jiangsu Zhangjiagang City Jiangsu Machine 90.00% combination Co. Ltd. Province Province manufacturing under common control
Nanjing Ninggao New Channel Nanjing City Jiangsu Nanjing City
Construction Co. Ltd Province Jiangsu
Engineering Establishment
Province construction
100.00% by investing
Nantong Business ZPMC Qidong Marine Engineering Nantong City Jiangsu Machine combination not
Co. Ltd. Province City Jiangsu Province manufacturing
67.00% under common
control
Jiahua Shipping Co. Ltd. Hong Kong Hong Kong Shipping 70.00% Establishment by investing
Zhenhua Pufeng Wind Energy Establishment
(HongKong) Co. Ltd. Hong Kong Hong Kong Shipping 51.00% by investing
ZPMC Brazil Servi?o Portuários LTDA Rio DE Janeiro Brazil Rio DE Janeiro Establishment Brazil Trade sales 80.00% by investing
ZPMC Limited Liability Company Moscow Russia Moscow Russia Trade sales 85.00% Establishment by investing
ZPMC NA East Coast lnc. Virginia Delaware USA Trade sales 100.00% Establishment by investing
CCCC Investment & Development Nantong City Jiangsu Nantong City Jiangsu Engineering 49.36% Establishment Qidong Co. Ltd. (Remark 1) Province Province construction by investing
CCCC Liyang Urban Investment and Liyang City Engineering Establishment
Construction Co. Ltd. (Remark 2) Liyang City Jiangsu Province Jiangsu Province construction
48.00% by investing
ZPMC UK LD Cardiff UK Cardiff UK Trade sales 100.00% Establishment by investing
ZPMC Middle East Fze Dubai UAE Dubai UAE Trade sales 100.00% Establishment by investing
CCCC (Huaian) Construction Huaian City Engineering Establishment
Development Co. Ltd. Huaian City Jiangsu Province Jiangsu Province construction
71.57% by investing
CCCC Zhenjiang Investment Zhenjiang
Construction Management Zhenjiang City Jiangsu City Jiangsu Engineering Establishment
Development Co. Ltd. Province Province construction
70.00% by investing
CCCC Yongjia Construction Wenzhou City Zhejiang Wenzhou
Development Co. Ltd. Province City Zhejiang
Engineering Establishment
Province construction
80.00% by investing
CCCC Zhenhua Lvjian Technology Ningbo City Zhejiang Ningbo City Engineering Establishment
(Ningbo) Co. Ltd. (Remark 3) Province Zhejiang construction 40.00%Province by investing153
Name of subsidiary Principal place of business Registration Business
Shareholding ratio (%) Way of
place nature Direct Indirect acquisition
Business
ZPMC Hotel Co. Ltd. Pudong New Area Shanghai Pudong New Hotel and combination not Area Shanghai catering 100.00% under common
control
CCCC Rudong Construction Rudong City Jiangsu Rudong
Development Co. Ltd. Province City Jiangsu
Engineering Establishment
Province construction
14.80% 55.36% by investing
ZPMC Latin America Holding Establishment
Corporation Panama Panama Trade sales 100.00% by investing
Terminexus Co. Ltd. Hong Kong Hong Kong Technical Establishment consultancy 100.00% by investing
Business
Greenland Heavylift (Hong Kong) combination not
Limited (Remark 4) Hong Kong Hong Kong Shipping 50.00% under common
control
Business
GPO Grace Limited Marshall Islands Marshall Islands Shipping 100.00% combination not under common
control
Business
GPO Amethyst Limited Marshall Islands Marshall Islands Shipping 100.00% combination not under common
control
Business
GPO Sapphire Limited Marshall Islands Marshall Islands Shipping 100.00% combination not under common
control
Business
GPO Emerald Limited Marshall Islands Marshall Islands Shipping 100.00% combination not under common
control
Business
GPO Heavylift Limited Cayman Islands Cayman Islands Shipping 60.00% combination not under common
control
Business
GPO Heavylift AS Oslo Norway Oslo Norway Shipping 100.00% combination not under common
control
Business
GPO Heavylift Pte Ltd Singapore Singapore Shipping 100.00% combination not under common
control
Xiong’an Zhenhua Co. Ltd. Baoding City Hebei Province Baoding City Intelligent 100.00% Establishment Hebei Province service by investing
ZPMC Fuzhou Offshore Construction Fuzhou City Maritime
Co. Ltd. Fuzhou City Fujian Province Fujian Province engineering 100.00%
Establishment
construction by investing
CCCC (Dongming) Investment and Heze City Shandong Heze City Engineering Establishment
Construction Co. Ltd. Province Shandong 70.00%Province construction by investing
Zhenhai No. 2 Drilling Limited Hong Kong Hong Kong Drilling services 100.00%
Establishment
by investing
Zhenhai No.3 Drilling Limited Hong Kong Hong Kong Drilling services 100.00%
Establishment
by investing1542020
Name of subsidiary Principal place of business Registration Business
Shareholding ratio (%) Way of
place nature Direct Indirect acquisition
Zhenhai No. 5 Drilling Limited Hong Kong Hong Kong Drilling Establishment services 100.00% by investing
Zhenhai No. 6 Drilling Limited Hong Kong Hong Kong Drilling 100.00% Establishment services by investing
The shareholding ratio in subsidiaries is different from the proportion of voting rights:
None
The basis for holding half or less of the voting rights but still controlling the invested entity and the basis for holding
more than half of the voting rights but not controlling the invested entity:
None
The basis for control of the important structured entities included in the consolidation scope:
None
Basis for determining whether the Company is an agent or a principal:
None
Other description:
Remark 1: By signing the agreement for concerted action with CCCC Tianjin Dredging Co. Ltd. the Group had obtained
95% voting power in the board of shareholders and 100% voting power in the board of directors of such company (CCCC
Investment & Development Qidong Co. Ltd.). In accordance with the regulations of the articles of association of such
company the Group had obtained the control right thereof thus such company was included in the Group’s sconsolidation
scope.Remark 2: By signing the agreement for concerted action with CCCC Shanghai Dredging Co. Ltd. and CCCC East
China Investment Co. Ltd. the Group had obtained 76% voting power in the board of shareholder and 71% voting power
in the board of directors of such company (CCCC Liyang Urban Investment and Construction Co. Ltd.). In accordance with
the regulations of the articles of association of such company the Group had obtained the control rights thereof thus such
company was included in the Groups’ consolidation scope.Remark 3: By signing the agreement for concerted action with CCCC Highway Consultants Co. Ltd. and CCCC
Equipment Manufacturing Marine Heavy Industry Division the Group had obtained 50% voting power in the board of
shareholders and 60% voting power of the board of directors of such company (CCCC Zhenhua Lvjian Technology (Ningbo)
Co. Ltd.). In accordance with the regulations of the articles of association of such company the Group had obtained the
control right thereof thus such company was included in the Group’s consolidation scope.Remark 4: In accordance with the acquisition agreement the Group held two of the four seats in the board of directors
of such company (Greenland Heavylift (Hong Kong) Limited) including chairman of the board. As required in the articles of
association of such company the chairman of the board has super voting power when the voting of the board is deadlocked.In addition Group also has the right to buy 1% equity of such company at USD 1 at any time in the future. Therefore the
Group has the substantial control over such company and such company was included in the Group’s consolidation scope
for the financial statements.
(2) Major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Profit or loss Balance of minority
Shareholding Dividends declared to
attributable to the shareholders' equity
Name of subsidiary ratio of minority minority shareholders
minority shareholder at the end of the
shareholder in current period
in current period period
ZPMC Transmission Machinery
(Nantong) Co. Ltd. 49.25% 44043728 -31907452 826201602
CCCC Zhenjiang Investment
Construction Management 30% 9907132 -14523578 203991836
Development Co. Ltd.Greenland Heavylift
(HongKong) Limited 50% -44329031 248026815
Description of the difference between the shareholding ratio of minority shareholders and the proportion of voting right
ratio in subsidiaries:
□Applicable √Not applicable155
Other description:
√Applicable □Not applicable
Subsidiaries with significant minority equity:2020
Capital Special Accumulated
Shareholding Profit or loss Dividends
contributed / reserves minority
ratio of attributable to paid to
(withdrawn) withdrawn equity at the
minority the minority minority
by minority by minority end of the
shareholder shareholder shareholder
shareholder shareholder year
ZPMC Transmission
Machinery (Nantong) 49.25% 200000000 44043728 (31907452) - 826201602
Co. Ltd.CCCC Zhenjiang
Investment Construction
Management 30.00% (141669170) 9907132 (14523578) - 203991836
Development Co. Ltd.Greenland Heavylift
(HongKong) Limited 50.00% - (44329031) - - 2480268152019
Changes in
Profit
Shareholding Capital accounting Special policies - or loss Dividends paid reserves Accumulated ratio of contributed Application of attributable minority by minority to the to minority withdrawn
minority equity
new financial at the end of shareholder shareholder instrument minority
shareholder by minority
shareholder the year
standard shareholder
CCCC Tianhe
Mechanical Equipment 67.49% - (6011469) 48481428 - 53477 684876399
Manufacturing Co. Ltd
ZPMC Transmission
Machinery (Nantong) 49.25% 614065326 - - - - 614065326
Co. Ltd.CCCC Zhenjiang
Investment
Construction 30.00% - - 14514024 - - 350277452
Management
Development Co. Ltd.Greenland Heavylift
50.00% - - (2667244) (973150) - 292355846
(HongKong) Limited
(3) Main financial information of major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020
Name of subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
CCCC Zhenjiang Investment
Construction Management 733178647 14701 733193348 -53220561 -53220561
Development Co. Ltd.Greenland Heavylift
(HongKong) Limited 121027739 1953698858 2074726597 -455304675 -1130294502 -1585599177
ZPMC Transmission
Machinery (Nantong) Co. Ltd. 1439325230 394262258 1833587488 -156331859 - -1563318591562020
December 31 2020
Name of subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
CCCC Tianhe Mechanical
Equipment Manufacturing
Co. Ltd
December 31 2019
Name of subsidiary Current Non-current Current Non-current
Total assets Total liabilities
assets assets liabilities liabilities
CCCC Zhenjiang Investment
Construction Management 377510693 853738541 1231249234 -63657726 -63657726
Development Co. Ltd.Greenland Heavylift
(HongKong) Limited 105658741 2139263095 2244921836 -429544507 -1233274882 -1662819389
ZPMC Transmission
Machinery (Nantong) Co. 1061226741 393323378 1454550119 -207716971 -207716971
Ltd.CCCC Tianhe Mechanical
Equipment Manufacturing 2245394111 2871131414 5116525525 -3456472738 -645270749 -4101743487
Co. Ltd
Amount incurred in the current period
Name of subsidiary Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
CCCC Zhenjiang Investment Construction
Management Development Co. Ltd. 33023773 33023773 517498836
Greenland Heavylift (HongKong) Limited 261736949 -54103269 -88658061 6619732
ZPMC Transmission Machinery (Nantong) Co. Ltd. 736059047 89433610 89433610 66499450
CCCC Tianhe Mechanical Equipment
Manufacturing Co. Ltd
Amount incurred in the previous period
Name of subsidiary Operating Total comprehensive Cash flows from
Net profit
revenue income operating activities
CCCC Zhenjiang Investment Construction
Management Development Co. Ltd. 48380079 48380079 -256615368
Greenland Heavylift (HongKong) Limited 245078363 -16628814 -7122338 95869438
ZPMC Transmission Machinery (Nantong) Co. Ltd. 650913183 47393360 47393360 14617991
CCCC Tianhe Mechanical Equipment
Manufacturing Co. Ltd 1163944626 71810934 71810934 55406683
Other description:
None
(4) Major restrictions on the use of assets of enterprise group and the repayment of debts of enterprise group
□Applicable √Not applicable
(5) Financial support or other supports provided to structured entities included in the scope of consolidated financial
statements
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
2 Transactions in which the owner's equity share of a subsidiary changes and the subsidiary is still under control
□Applicable √Not applicable157
1.Equity in joint ventures and associates
√Applicable □Not applicable
(1) Major joint ventures or associates
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Principal Shareholding ratio (%)
Registration Accounting
Name of joint venture or associate place of Business nature
place treatment
business Direct Indirect
Joint ventures
Jiangsu Longyuan Zhenhua Marine Marine engineering
Jiangsu Nantong Jiangsu 50% Equity method
Engineering Co. Ltd construction
ZPMC Mediterranean Liman Istanbul Technical service
Istanbul Turkey 50% Equity method
Makinalari Ticaret Anonim Sirketi Turkey for port equipment
Zhenhua Marine Energy (HK) Co. Ltd. Hong Kong Hong Kong Shipping 51% Equity method
Technical service
Cranetech Global Sdn.Bhd. Malaysia Malaysia 49.99% Equity method
for port equipment
ZPMC-OTL MARINE CONTRACTOR
Hong Kong Hong Kong Shipping 50% Equity method
LIMITED
Associates
Marine technology
CCCC Marine Engineering & Pudong New Area
Shanghai development and 25% Equity method
Technology Research Center Co. Ltd. Shanghai
consulting
Real estate
CCCC Estate Yixing Co. Ltd. Jiangsu Wuxi Jiangsu 20% Equity method
development
Changzhou
ZPMC Changzhou Coatings Co. Ltd Jiangsu Paint manufacture 20% Equity method
Jiangsu
Pudong New Area
CCCC Financial Leasing Co. Ltd Shanghai Finance lease 30% Equity method
Shanghai
CCCC Yancheng Construction Engineering project
Jiangsu Yancheng Jiangsu 25% Equity method
Development Co. Ltd. construction
Suzhou Chuanglian Electric Drive Co. Electric equipment
Jiangsu Suzhou Jiangsu 20% Equity method
Ltd. manufacturing
Port channel
China Communications Construction
USA USA highway and bridge 24% Equity method
USA Inc.construction
Port channel
CCCC South American Regional
USA USA highway and bridge 17% Equity method
Company SARL
construction
ZPMC Southeast Asia Pte. Ltd. Singapore Singapore Trade sales 40% Equity method
Shanghai Ocean Engineering Development of
Equipment Manufacturing Innovation Shanghai China ocean engineering 8.97% Equity method
Center Co. Ltd. technology
Shanghai Xingyi Construction Building
Shanghai Shanghai 30% Equity method
Technology Co. Ltd. engineering
CCCC Xiongan Urban Construction Engineering project
Hebei Xiongan Hebei 15.00% Equity method
Development Co. Ltd. construction
Description of the difference between shareholding ratio and proportion of voting rights in joint venture or associates:
None
Basis for holding less than 20% of voting rights but having significant influence or holding 20% or more of voting rights
but not having significant influence:
None
(2) Main financial information of major joint ventures:
□Applicable √Not applicable1582020
(3) Main financial information of major associates:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020/Amount incurred December 31 2019/Amount incurred in
in the current period the previous period
CCCC Financial CCCC Financial CCCC Financial CCCC Financial
Leasing Co. Ltd Leasing Co. Ltd Leasing Co. Ltd Leasing Co. Ltd
Current assets 22819943898 - 19939324543 -
Non-current assets 24486499994 - 21339769559 -
Total assets 47306443892 - 41279094102 -
Current liabilities -20424045460 - -21496787586 -
Non-current liabilities -16947008625 - -11265256085 -
Total liabilities -37371054085 - -32762043671 -
Minority equity 2697430648 - 2565417538 -
Other equity instrument - Perpetual bond 998000000 - - -
Shareholders’ equity attributable the parent
company 6239959159 - 5951632893 -
Share of net assets held based on shareholding
ratio 1883150758 - 1785702878 -
Adjustments - - - -
--Goodwill - - - -
--Unrealized profits of internal transactions - - - -
--Others - - - -
Book value of equity investment in associates 1883150758 - 1785702878 -
Fair value of equity investment in associates with
public offer - - - -
Operating revenue - 2740010098 - 2052054187
Financial expenses-interest income - 17688700 - 18917032
Financial expenses - interest expenses - 52265036 - 51051246
Income tax expenses - 214170405 - 126731537
Net profit - 526789103 - 386156164
Net profit from discontinuing operation - - - -
Other comprehensive income - - - -
Net of tax of other comprehensive income - -4238920 - 1034782
Total comprehensive income - 522550183 - 387190946
Total comprehensive income attributable to the
parent company - 390537074 - 298442527
Dividends received from associates in the current
year - - - -
Dividends distributed - 102210808 - 32500000
Including: dividends distributed to investors of
other equity instruments - 36500000 - -
Other description
None159
(4) Summary of financial information of insignificant joint ventures and associates:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2019/Amount
December 31 2020/Amount
incurred in the previous
incurred in the current period
period
Joint ventures:
Total book value of investment 277261963 312812059
Total number of following items by shareholding ratio
-- Net profit 11542458 17192511
-- Other comprehensive income
-- Total comprehensive income 11542458 17192511
Associates:
Total book value of investment 881820163 775158808
Total number of following items by shareholding ratio
-- Net profit 8917689 4309481
-- Other comprehensive income -27392214 -2315141
-- Total comprehensive income -18474525 1994340
Other description
None
(5) Description of the significant restrictions on the ability of joint ventures or associates to transfer funds to the
Company
□Applicable √Not applicable
(6) Excess loss of joint ventures or associates
□Applicable √Not applicable
(7) Unrecognized commitments related to joint venture investment
□Applicable √Not applicable
(8) Contingent liabilities related to investment in joint ventures or associates
□Applicable √Not applicable
3 Significant joint operation
□Applicable √Not applicable
4 Equity in structured entities not included in the scope of consolidated financial statements
Description of structured entities not included in the scope of consolidated financial statements:
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
X. Risks related to financial instruments
√Applicable □Not applicable
1 Classification of financial instruments
The book values of various financial instruments on the balance sheet date:16020202020
Financial assets
Financial assets measured at Financial assets measured at
fair value through the current Measured at fair value through the other
profit or loss Totalamortized cost comprehensive income
Standard Designated Standard Designated
Monetary funds - - 2948074736 - - 2948074736
Held-for-trading financial
assets 1601623650 - - - - 1601623650
Notes receivable - - 753000 - - 753000
Receivables financing - - - 362006319 - 362006319
Accounts receivable - - 7227065255 - - 7227065255
Other receivables - - 321158686 - - 321158686
Non-current assets due
within one year - - 1884370444 - - 1884370444
Investment in other equity
instruments - - - - 61505751 61505751
Long-term receivables - - 5077114342 - - 5077114342
Other non-current financial
assets 330094057 - - - - 330094057
1931717707 - 17458536463 362006319 61505751 19813766240
Financial liabilities
Financial liabilities measured at fair Financial liabilities
value through the current profit or loss measured at Total
Standard Designated amortized cost
Short-term borrowings - - 17795076565 17795076565
Held-for-trading financial liabilities 458882 458882
Notes payable - - 3600725892 3600725892
Accounts payable - - 7773903147 7773903147
Other payables - - 465042916 465042916
Non-current liabilities due within one year - - 1374465319 1374465319
Long-term borrowings - - 16850299742 16850299742
Long-term payables - - 1632757932 1632757932
458882 - 49492271513 494927303952019
Financial assets
Financial assets measured at Financial assets measured at
fair value through the current Measured at fair value through the other
profit or loss amortized cost comprehensive income
Total
Standard Designated Standard Designated
Monetary funds - - 3310297451 - - 3310297451
Held-for-trading financial
assets 1739792062 - - - - 1739792062
Notes receivable - - 5650000 - - 5650000161
Financial assets measured at Financial assets measured at
fair value through the current Measured at fair value through the other
profit or loss Totalamortized cost comprehensive income
Standard Designated Standard Designated
Receivables financing - - - 406408604 - 406408604
Accounts receivable - - 4966175528 - - 4966175528
Other receivables - - 546907645 - - 546907645
Non-current assets due
within one year - - 1313203581 - - 1313203581
Investment in other equity
instruments - - - - 61981268 61981268
Long-term receivables - - 5227728420 - - 5227728420
1739792062 - 15369962625 406408604 61981268 17578144559
Financial liabilities
Financial liabilities measured at fair Financial liabilities
value through the current profit or loss measured at amortized Total
Standard Designated cost
Short-term borrowings - - 22001319380 22001319380
Held-for-trading financial liabilities 7312741 - - 7312741
Notes payable - - 3420945451 3420945451
Accounts payable - - 7869378365 7869378365
Other payables - - 694418175 694418175
Non-current liabilities due within one year - - 7287484513 7287484513
Long-term borrowings - - 8413339986 8413339986
Long-term payables - - 1741945636 1741945636
7312741 - 51428831506 51436144247
2 Transfer of financial assets
Transferred financial assets derecognized as a whole but involved continuously
As at December 31 2020 the book value of the bank acceptance bill given by the Group upon endorsement to the
supplier for accounts payable settlement amounted to RMB 571531799 (December 31 2019: RMB 738496754). As at
December 31 2020 the maturity term of such bill was 1 - 12 months. In accordance with the relevant provisions of the
Negotiable Instruments Law if the acceptance bank refuses to pay the bill holder shall be entitled to recourse to the Group
(“continue to be involved”).The Group considered that it had transferred almost all risks and rewards of such bill therefore
the aforesaid book value and the book value of relevant settled accounts payable should be derecognized as a whole.The maximum losses and undiscounted cash flows that continue to be involved were equal to the book value. The Group
considered that the fair value with continuous involvement was insignificant.In 2020 the Group failed to recognized relevant gain or loss on the date of transfer of the above financial assets (Year
2019: None).The Group had no income or expense which had been recognized for the current year or accumulatively
as it had been derecognized as a whole but continued to be involved in the financial assets. The endorsement of bank
acceptance bill receivable happened in this year evenly.3 Financial instrument risks
Various financial instrument risks the Group faces during the routine activities mainly include the credit risk liquidity risk
and market risk (including the exchange rate risk and interest rate risk). Main financial instruments of the Group include the
monetary funds equity investment borrowings notes receivable accounts receivable accounts receivable financing long-
term receivables notes payable and accounts payable.The Group's overall risk management plan is targeted at the unpredictability of financial market trying to minimize the
potential adverse influence on the Group’s financial results.1622020
Credit risk
The Group manages the credit risks by the classification of portfolios. The credit risk is mainly from accounts receivable
financing accounts receivable other receivables and long-term receivables.Other financial assets of the Group include monetary funds held-for-trading financial assets other equity investment
instruments and other non-current financial assets of which credit risks are from the counterpart's default and the maximum
exposure is equal to the book amount of these instruments.The Group only trade with the authorized third parties in good standing. Credit risks are managed in a centralized
manner by customer/counterpart geographic region and industry. As the Group’s customers of accounts receivable and
long-term receivables are widely dispersed across sectors and industries there is no significant credit risk concentration
within the Group. The Group did not hold any collateral or other credit enhancements for the balance of accounts receivable
and long-term receivables but did the same for the balance of long-term receivables.As the counterparts of monetary funds receivables financing and derivative financial instruments are banks in good
standing and having relatively higher credit rating these financial instruments have low credit risk.In addition as for the receivables financing accounts receivable financing accounts receivable other receivables and
long-term accounts receivable the Group has set relevant policies to control the credit risk exposure. The Group based on
the customers' financial positions the possibility of obtaining guarantees from the third party credit records and other factors
such as the current market conditions evaluates the credit qualifications of customers and set the credit period accordingly.The Group will monitor customers’ credit records periodically; as for the customers with bad credit records the Group will
take measures such as requesting a payment in writing shortening the credit period or canceling the credit term to ensure
that the Group's overall credit risks are within the controllable scope.Judgment criteria for significant increase in credit risk
On each balance sheet date the Group will evaluate the credit risks of relevant financial instruments to confirm whether
they have had significant increase or not after the initial recognition. On such confirmation the Group will consider the
reasonable and well-founded information which can be obtained without paying unnecessary surcharge or effort including
the information on qualitative and quantitative analysis based on the Group’s historical date external credit risk rating and
perspectiveness. Based on the individual financial instrument or portfolio of financial instruments with similar credit risk
characteristics the Group determines the changes in default risk in financial instruments during the estimated duration by
comparing the default risks in financial instruments on the balance sheet date with those on the initial recognition date.In case of one or more quantitative or qualitative standards the Group will consider that the credit risk of a financial
instrument has had significant increase:
(1) The quantitative standard mainly refers to the situation that the reporting date is overdue for certain days.
(2) The qualitative standard mainly refers to the situation that the debtor encounters any significant and adverse
operating or financial change or prepares the list of warning customers.Definition of assets with credit impairment
In order the determine whether there is credit impairment the Group adopts a definition standard to keep pace with the
internal credit risk management target regarding relevant financial instruments and takes the quantitative and qualitative
indicators into account. The Group mainly considers the following factors on evaluating whether the debtor has had credit
impairment:
(1)The issuer or the debtor suffers significant financial difficulties;
(2)The debtor violates any contract such as default or delay in repayment of interest or principal;
(3)Considering the economic or contractual reasons relevant to the debtor’s financial difficulty the debtor makes
concession which it will not make in any other circumstance;
(4)The debtor is likely to go bankrupt or carry out other financial reorganization;
(5)The active market of such financial assets disappears due to the issuer’s or the debtor’s financial difficulty;
(6)A financial asset is purchased or generated through the substantial discount and such discount reflects the fact of
credit loss.The credit impairment of financial assets may be caused by several events not just one event which can be individually
identified.Parameters for the measurement of expected credit loss
Based on the information whether the credit risk has had significant increase or there is credit impairment the Group
makes the provision for impairment of expected credit losses of various assets for 12 months or the entire duration. Key
parameters for the measurements of expected credit loss include the probability of default loss given default and exposure
at default. Considering the quantitative analysis on historical statistical data (including the rating of the counterpart way of
guarantee and category of collateral) and prospective information the Group builds models for probability of default loss
given default and exposure at default.163
Relevant definitions:
(1)The probability of default refers to the probability that the debtor may fail to perform the payment obligation over the
next 12 months or the entire duration. The Group’s probability of default is adjusted based on the credit loss model adding
the prospective information to reflect the debtor's probability of default in the current macroeconomic environment;
(2)The loss given default refers to the expectation made by the Group regarding the degree of loss on default risk
exposure. As the type of counterpart way of recourse and priority as well as collateral may be different the loss given default
may also be different. The loss given default refers to the percentage of the risk exposure loss at default calculated based
on the term of future 12 months or the entire duration;
(3)The exposure at default refers to the amount paid by the Group at default over the next 12 months or the entire
remaining duration.The prospective information is involved in the evaluation on significant change in credit risk and the calculation of
expected credit loss. Through the historical data analysis the Group identifies the key economic indicators affecting the
credit risks in various types of business and the expected credit loss.The impact of these economic indicators on the probability of default and the loss given default is different for different
type of business. In such course the Group makes the reference to the authoritative predictive values expect these
economic indicators based on results of those values and determine the impact of these economic indicators on the
probability of default and the loss given default.2020
The maximum risk exposure and the year-end classification of credit risk degrees regarding the Group’s financial assets
and contract assets are as follows:
Estimated credit loss
Estimated credit loss in the entire lifecycle
over the next 12 months Total
Stage I Stage II Stage III Simple method
Monetary funds 2948074736 - - - 2948074736
Held-for-trading financial assets 1601623650 - - - 1601623650
Notes receivable 753000 - - - 753000
Accounts receivable - - - 7227065255 7227065255
Contract assets - - - 2063296890 2063296890
Receivables financing 362006319 - - - 362006319
Other receivables 836659904 76750259 913410163
Non-current assets due within one year 1884370444 - - - 1884370444
Other non-current financial assets 330094057 - - - 330094057
Other non-current assets - - - 702933384 702933384
Long-term receivables 5077114342 - - - 5077114342
13040696452 76750259 - 9993295529 231107422402019
Estimated credit loss
Estimated credit loss in the entire lifecycle
in future 12 months Total
Stage I Stage II Stage III Simple method
Monetary funds 3310297451 - - - 3310297451
Held-for-trading financial assets 1739792062 - - - 1739792062
Notes receivable 5650000 - - - 5650000
Accounts receivable - - - 4966175528 4966175528
Receivables financing 406408604 - - - 406408604
Other receivables 1097763737 78797771 - - 1176561508
Non-current assets due within one year 1313203581 - - - 1313203581
Long-term receivables 5227728420 - - - 5227728420
13100843855 78797771 - 4966175528 181458171541642020
Liquidity risk
Subsidiaries within the Group are responsible for their own cash-flow prospects. The financial section of the head
office continues to monitor the short-term and long-term capital demands at the group level after collecting the cash flows
prospects of all subsidiaries to guarantee the sufficient cash reserve and cashable securities. Meanwhile the financial
section of the head office continues to monitor the financial and non-financial indicators prescribed in credit-granting
agreements and loan agreements to ensure that the Group can get sufficient line of credit from major financial institutions
so as to satisfy the short-term and long-term capital demands of all subsidiaries of the Group.As at December 31 2020 the various financial liabilities of the Group are listed as follows by due dates based on
undiscounted contracted cash flows (including principal and interest):2020
Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 18041418617 - - - 18041418617
Held-for-trading financial liabilities 458882 - - - 458882
Notes payable 3600725892 - - - 3600725892
Accounts payable 7773903147 - - - 7773903147
Other payables 481065700 - - - 481065700
Non-current liabilities due within one
year 1480593478 - - - 1480593478
Long-term borrowings - 2448871944 14087369245 1621865690 18158106879
Long-term payables - 555681491 579063124 805440349 1940184964
31378165716 3004553435 14666432369 2427306039 51476457559
As at December 31 2019 the various financial liabilities of the Group are listed as follows by due dates based on
undiscounted contracted cash flows (including principal and interest):2019
Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 22371944008 - - - 22371944008
Held-for-trading financial liabilities 7312741 - - - 7312741
Notes payable 3420945451 - - - 3420945451
Accounts payable 7869378365 - - - 7869378365
Other payables 711389996 - - - 711389996
Non-current liabilities due within one
year 7533454596 - - - 7533454596
Long-term borrowings - 2959780013 5249838271 879572205 9089190489
Long-term payables - 683803609 535717708 609414984 1828936301
41914425157 3643583622 5785555979 1488987189 52832551947
Market risk
Interest rate risk
The Group’s interest rate risk is mainly from such long-term interest-bearing liabilities as long-term bank borrowings and
long-term payables. Floating-rate financial liabilities expose the Group to cash flow interest rate risk while fixed-rate financial
liabilities expose the Group to fair value interest rate risk. The Group determines the relative proportion of contracts with
fixed interest rate and contracts with floating interest rate according to the current market environment. As at December 31
2020 the Group’s long-term interest-bearing liabilities mainly were the floating rate contracts priced in USD and the fixed
rate contracts priced in RMB.The market interest rate fluctuating risks that the Group encounters are mainly relevant to the long-term liabilities where
the interest is calculated at the floating interest rate.The finance department in the headquarters of the Group continues monitoring and controlling the interest rate level of
the Group. The increase in interest rate will increase the costs of the new interest-bearing debts and the interest expenses
of interest-bearing debts failing to be paid up by the Group and subject to the interest calculation at floating interest rate
and will significantly and adversely affect the Group's financial results; the management will control partial interest rate risk
based on the newest market situation through the swap contract and other interest rate swap arrangements. In 2020 and
2019 the Group had no interest rate swap arrangement.165
The following table shows the sensitivity analysis of the interest rate risk reflecting the effect of the reasonable and
possible changes in the interest rate on net profit or loss (through the impact on loan with floating interest rate) and the net
amount of other comprehensive income after tax based on the assumption of no change in other variables.2020
Base point Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB 100 (34223642) - (34223642)
RMB (100) 34223642 - 342236422019
Base point Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB 100 (58026976) - (58026976)
RMB (100) 58026976 - 58026976
Exchange rate risk
The Group is exposed to transactional exchange rate risk. Such risks are due to sales or purchases made by the
operating entity in currencies other than its functional currency. The Group’s main production is within the territory of China
but its sales and purchase is settled in USD. However there still were foreign exchange risks in the foreign currency assets
and liabilities and future foreign currency transactions that have been recognized by the Group (foreign currency assets and
liabilities and foreign currency transactions are priced mainly in USD). The finance department of the Headquarters of the
Group is responsible for supervising the scale of the Group's foreign currency transactions and foreign currency assets and
liabilities to minimize the foreign exchange risks.The following table is a sensitivity analysis of exchange rate risk reflecting the assumption that all other variables will
remain the same when the USD exchange rate changes reasonably and possibly it will affect the net profit or loss (due to
the change in fair value of monetary assets and liabilities) and other comprehensive income net of tax (due to the change in
fair value of forward foreign exchange contract).2020
USD exchange rate Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB appreciation
against USD 1% 15995421 - 15995421
RMB depreciation
against USD (1%) (15995421) - (15995421)2019
USD exchange rate Net profit or loss Net of tax of other comprehensive Total shareholders' equity
Increase / (Decrease) Increase / (Decrease) income Increase / (Decrease) Increase / (Decrease)
RMB appreciation
against USD 1% 40098106 - 40098106
RMB depreciation
against USD (1%) (40098106) - (40098106)
Price risk of equity instrument investment
The price risk of equity instrument investment refers to the risk that the fair value of equity securities decreases due
to the change of stock index level and individual securities value. As at December 31 2020 the Group was exposed to
the price risk of equity instrument investment arising from the individual equity instrument investment classified as equity
instrument investment measured at fair value through the current profit or loss. The listed equity instrument investment
held by the Group is listed on the stock exchanges of Shanghai Shenzhen and Hong Kong and measured at the market
quotation on the balance sheet date.The market stock indexes of the following stock exchanges at the closing of the trading day closest to the balance sheet
date as well as their respective highest and lowest closing points in the year:1662020
At the end of 2020 Highest / lowest in 2020 At the end of 2019 Highest / lowest in 2019
Shanghai - A-share index 3649 3912/2774 3196 3426/2580
Shenzhen - A-share index 2438 2442/1683 1802 1865/1303
Hong Kong - Hang Seng Index 27231 29175/21139 28190 30157/25064
The following table shows the sensitivity of the Group's net profit or loss to the change of 1% of the fair value of equity
instrument investment (based on the book value on the balance sheet date) under the assumption that all other variables
remain unchanged.2020
Book value Increase / Increase / (decrease) Increase /
of equity (decrease) in net of tax of other (decrease) in total
instrument in net profit comprehensive shareholders'
investment or loss income equity
Equity instrument investment
Shanghai - equity instrument investment measured at fair
value through the current profit or loss 679011665 5771599 - 5771599
Shenzhen - equity instrument investment measured at fair
value through the current profit or loss 229296774 1949023 - 1949023
Hong Kong - equity instrument investment measured at fair
value through the current profit or loss 684876933 5718722 - 5718722
Investment in unlisted equity instruments measured at fair
value
- Equity instrument investment measured at fair value through
the current profit or loss 330094057 2805799 - 2805799
- Equity instrument investment measured at fair value through
the other comprehensive income 61505751 - 522799 5227992019
Book value Increase / Increase / (decrease) Increase /
of equity (decrease) in net of tax of other (decrease) in total
instrument in net profit comprehensive shareholders'
investment or loss income equity
Equity instrument investment
Shanghai - equity instrument investment measured at fair value
through the current profit or loss 585555555 4977222 - 4977222
Shenzhen - equity instrument investment measured at fair
value through the current profit or loss 133330676 1132191 - 1132191
Hong Kong - equity instrument investment measured at fair
value through the current profit or loss 990232309 8268440 - 8268440
Investment in unlisted equity instruments measured at fair
value
- Equity instrument investment measured at fair value through
the other comprehensive income 61981268 - 526841 526841
4 Capital management
The Group’s objectives of capital management policy are to safeguard the Group’s ability to continue as a going concern
in order to provide returns for shareholders and benefits for other stakeholders and to maintain an optimal capital structure to
reduce the cost of capital.In order to maintain or adjust the capital structure the Group may adjust the amount of dividends paid to shareholders
return capital to shareholders issue new shares or sell assets to reduce debt.The total capital of the Group is the shareholders' equity as listed in the consolidated balance sheet. The Group is not
subject to external mandatory capital requirements and makes use of the asset-liability ratio to monitor capital. This ratio
is calculated by the net debt divided by total capital. The net debt is the total borrowing (including Short-term borrowings
listed in the consolidated balance sheet other non-current liabilities due within one-year Long-term borrowings other
payables and interest-bearing liabilities in long-term payables) minus cash and cash equivalents. The total capital is the total
shareholders’ equity plus net debt.167
As at December 31 2020 and December 31 2019 the liability ratio of the Group is listed as follows:
2020 2019
Debt ratio 67% 67%
XI. Fair value disclosure
1 Ending fair value of assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Ending fair value
Item Fair value Fair value Fair value
measurement measurement measurement Total
at level 1 at level 2 at level 3
I. Continuous fair value measurement
(I) Held-for-trading financial assets 1593185372 8438278 1601623650
1. Financial assets measured at fair value through the current profit
or loss 1593185372 8438278 1601623650
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative financial assets 8438278 8438278
(4) Equity of listed companies 1593185372 1593185372
2. Financial assets designated to be measured at fair value through
the current profit or loss
(1) Debt instrument investment
(2) Equity instrument investments
(II) Other debt investment
(III) Investment in other equity instruments 61505751 61505751
(IV) Investment property
1. Land use right for lease
2. Buildings for lease
3. Land use right held for transfer after appreciation
(V) Biological assets
1. Consumptive biological assets
2. Productive biological assets
(VI) Receivables financing 362006319 - 362006319
(VII) Other non-current financial assets 330094057 330094057
Total assets measured with continuous fair value continuously 1593185372 362006319 400038086 2355229777
(VI) Held-for-trading financial liabilities
1. Financial liabilities measured at fair value through current profit or
loss
Including: Trading bonds issued
Derivative financial liabilities
Others
2. Financial liabilities designated to be measured at fair value through
the current profit or loss
Forward foreign exchange contract 458882 458882
Total liabilities measured with continuous fair value continuously 458882 458882
II. Non-continuous fair value measurement1682020
Ending fair value
Item Fair value Fair value Fair value
measurement measurement measurement Total
at level 1 at level 2 at level 3
(I) Assets held for sale
Total assets not continuously measured at fair value
Total liabilities not continuously measured at fair value
2 The basis for determining the market value of continuous and non-continuous fair value measurement items at level 1
□Applicable √Not applicable
3 Valuation techniques and the qualitative and quantitative information of important parameters for continuous
and non-continuous fair value measurement items at level 2
√Applicable □Not applicable
The Group regards the date when the conversion of levels occurs as the time point of the conversion of all levels. There
was no conversion among levels in this year.Where there is an active market traded for a financial instrument the Group shall adopt the quoted price in the active
market to determine the fair value thereof; where there is no active market traded for a financial instrument the Group shall
adopt value appraisal techniques to determine its fair value. The valuation models used are discounted cash flow model and
market comparable company model. The input value of valuation techniques mainly includes the weighted average cost of
capital liquidity discount price to book ratio of comparable companies.Relevant information about the measurement of fair value at level 2 is as follows:
2020 Observable input value
Valuation technique
Fair value Name Scope
Receivables financing 362006319 Discounted cash flow model Similar open market lending rate 4.4%
Held-for-trading financial liabilities
- ZAR Forward foreign exchange
contract 458882 Discounted cash flow model ZAR-USD forward foreign exchange 15.0022 to 15.2013
4 Valuation techniques and the qualitative and quantitative information of important parameters for continuous
and non-continuous fair value measurement items at level 3
√Applicable □Not applicable
The significant and unobservable input value of fair value measurement at Level 3 is as follows:
2020 Unobservable input value
Valuation technique
Fair value Name Weighted average
Held-for-trading financial assets –
equity instrument investments 8438278 Discounted cash flow model Weighted average capital cost 11%
Investment in other equity Liquidity discount 29%-37%
instruments 61505751
Market comparable
company model P/B ratio of comparable company 1.3-2.18
Market comparable Liquidity discount 29%Other non-current financial assets 330094057 company model P/B ratio of comparable company 1.43
5 For continuous fair value measurement items at level 3 the adjustment information between beginning and
ending book value and the sensitivity analysis of unobservable parameters
□Applicable √Not applicable
6 For continuous fair value measurement items if there is conversion between different levels in the current
period the reasons for conversion and the policies for determining the conversion time
□Applicable √Not applicable169
7 Changes in valuation technology in the current period and reasons for changes
□Applicable √Not applicable
8 Fair values of financial assets and financial liabilities not measured at fair value
□Applicable √Not applicable
9 Others
√Applicable □Not applicable
Assets and liabilities disclosed at fair value
The management has evaluated the monetary funds accounts receivables notes payable and accounts payable and
the fair value is equal to the book value due to short remaining term.The long-term receivables of the Group are the receivables with floating rate and the difference between the book value
and fair value is small.As for the long-term borrowings and long-term payables the book value shall be determined by the future cash flow specified
in the contract after discounting according to the interest rate which has comparable credit rating on the market and provides
almost the same cash flow under the same conditions and the difference between the book value and such fair value is small.Adjustment and level conversion of fair value measurement
In this year there was no transfer of fair value measurement of financial assets and financial liabilities between level 1
and level 2 and there was no transfer into or out of the level 3.XII Related parties and related party transactions
1 Parent company
√Applicable □Not applicable
Unit: 10000 Yuan Currency: CNY
Registration Registered Shareholding ratio in Voting ratio in the
Parent company Business nature
place capital the Company (%) Company (%)
China Communications Beijing City Port project contracting and Construction Group Co. Ltd. related business 585542 46.229 46.229
Description of the parent company of the Company
None
The final controlling party of the Company is the China Communications Construction Group Co. Ltd.Other description:
None
2 Subsidiaries
For details of subsidiaries of the Company please refer to the notes.√Applicable □Not applicable
For details of subsidiaries please refer to Note IX (1).3 Joint ventures and associates
For details of major joint ventures and associates please refer to Note IX (2).□Applicable √Not applicable
Other joint ventures or associates that have related party transactions with the Company in the current period or formed
balance in the previous period are as follows
□Applicable √Not applicable
Other description
□Applicable √Not applicable
4 Other related parties
√Applicable □Not applicable
Name of other related parties Relationship with related party
China Communications Construction Company Ltd. Controlled by the same parent company
China Harbour Engineering Co. Ltd. Controlled by the same parent company
CCCC Finance Company Ltd. Controlled by the same parent company1702020
Name of other related parties Relationship with related party
CCCC Second Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC Second Highway Consultants Co. Ltd. Controlled by the same parent company
CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Second Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC Third Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Third Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC Fourth Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC Fourth Harbor Engineering Co. Ltd Controlled by the same parent company
CCCC Fourth Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC First Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC First Highway Consultants Co. Ltd. Controlled by the same parent company
CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC-FHEC Urban Traffic Engineering Co. Ltd. Controlled by the same parent company
CCCC First Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC - SHEC Second Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC - SHEC Third Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC - SHEC Fourth Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC - SHEC Railway Construction Co. Ltd Controlled by the same parent company
CCCC - SHEC Electrical Engineering Co. Ltd. Controlled by the same parent company
CCCC SHEC Chengdu Urban Construction Engineering Co. Ltd. Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
No.3 Co. of The Second Navigational Engineering Bureau CCCC Controlled by the same parent company
No.4 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
The First Construction Company of CCCC Second Harbor Engineering Co. Ltd Controlled by the same parent company
CCCC-SHEC Construction Engineering Co. Ltd Controlled by the same parent company
Zhen Hwa Harbour Construction Co. Ltd. Controlled by the same parent company
Beijing Rate Electronic Technology Developing Co. Ltd. Controlled by the same parent company
CCCC Guidu Highway Construction Co. Ltd. Controlled by the same parent company
Road & Bridge International Co. Ltd. Controlled by the same parent company
Shanghai Waterway Logistics Co. Ltd Controlled by the same parent company
Shanghai Jiangtian Industrial Co. Ltd. Controlled by the same parent company
Shanghai Communications Construction Contracting Co. Ltd. Controlled by the same parent company
Shanghai Interlink Road & Bridge Engineering Co. Ltd. Controlled by the same parent company
Shanghai Zhensha Longfu Machinery Co. Ltd. Controlled by the same parent company
Shanghai China Communications Water Transportation Design & Research Co. Ltd. Controlled by the same parent company
CCCC Tianjin Dredging Co. Ltd. Controlled by the same parent company
Wuhan Hangke Logistics Company Limited Controlled by the same parent company
Hong Kong Marine Construction Limited Controlled by the same parent company
Zhenhua Engineering Co. Ltd. Controlled by the same parent company
Xiangtan CCCC Infrastructure Investment and Construction Co. Ltd. Controlled by the same parent company
Yueyang Chenglingji New Port Co. Ltd. Controlled by the same parent company
China Communications Materials & Equipment Co. Ltd. Controlled by the same parent company
China Road & Bridge Corporation Controlled by the same parent company
China Highway Engineering Consultants Corporation Controlled by the same parent company
Chuwa Risheng (Beijing) International Trade Co. Ltd Controlled by the same parent company
Chuwa Bussan Co. Ltd. Controlled by the same parent company
CCCC (Xiamen) Information Co. Ltd Controlled by the same parent company171
Name of other related parties Relationship with related party
CCCC (Zhoushan) Dredging Co. Ltd. Controlled by the same parent company
CCCC North Industrial Co. Ltd. Controlled by the same parent company
CCCC Highway Consultants Co. Ltd. Controlled by the same parent company
CCCC Highway Bridges National Engineering Research Centre Co. Ltd. Controlled by the same parent company
CCCC Guangzhou Dredging Co. Ltd. Controlled by the same parent company
CCCC International (Hong Kong) Holdings Limited Controlled by the same parent company
CCCC International Shipping Co. Ltd Controlled by the same parent company
CCCC Marine Engineering & Technology Research Center Co. Ltd. Controlled by the same parent company
CCCC East China Investment Co. Ltd. Controlled by the same parent company
CCCC Electrical and Mechanical Engineering Co. Ltd. Controlled by the same parent company
CCCC Infrastructure Maintenance Group Co. Ltd. Controlled by the same parent company
Road & Bridge East China Engineering Co. Ltd. Controlled by the same parent company
Road & Bridge South China Engineering Co. Ltd Controlled by the same parent company
Road & Bridge International Co. Ltd. Controlled by the same parent company
CCCC Nanjing Traffic Engineering Management Co. Ltd. Controlled by the same parent company
CCCC Financial Leasing (Guangzhou) Co. Ltd Controlled by the same parent company
CCCC Financial Leasing Co. Ltd Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
No.3 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
Construction Materials Co. Ltd CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Shanghai Harbor Engineering Design & Research Institute Co. Ltd. Controlled by the same parent company
CCCC Shanghai Dredging Co. Ltd. Controlled by the same parent company
CCCC Shanghai Channel Equipment Industry Co. Ltd. Controlled by the same parent company
CCCC Shanghai Equipment Engineering Co. Ltd. Controlled by the same parent company
CCCC Worldcom (Chongqing) Heavy Industries Co. Ltd. Controlled by the same parent company
CCCC National Engineering Research Center of Dredging Technology and Equipment Co.Ltd. Controlled by the same parent company
CCCC Water Transportation Planning and Design Institute Co. Ltd. Controlled by the same parent company
No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC Fourth Harbor Engineering Co. Ltd. Controlled by the same parent company
The Third Engineering Company of CCCC Fourth Harbor Engineering Co. Ltd Controlled by the same parent company
CCCC Tunnel Engineering Company Limited Controlled by the same parent company
Hainan Industry Co. Ltd. of CCCC Tianjin Dredging Co. Ltd. Controlled by the same parent company
Binhai Environmental Protection Dredging Co. Ltd. of CCCC Tianjin Dredging Co. Ltd. Controlled by the same parent company
CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd Controlled by the same parent company
CCCC Tianhe Xi’an Equipment Manufacturing Co. Ltd. Controlled by the same parent company
CCCC Tianjin Port Waterway Prospection & Design Research Institute Co. Ltd. Controlled by the same parent company
CCCC Tianjin Industry and Trade Co. Ltd. Controlled by the same parent company
CCCC Tianjin Dredging Co. Ltd. Controlled by the same parent company
CCCC WuHan Harbour Engineering Design and Research Co. Ltd. Controlled by the same parent company
CCCC Xi’an Road Construction Machinery Co. Ltd. Controlled by the same parent company
CCCC Xingyu Technology Co. Ltd Controlled by the same parent company
CCCC Xiongan Financial Leasing Co. Ltd Controlled by the same parent company
CCCC Yancheng Construction Development Co. Ltd. Controlled by the same parent company
No.8 Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. Controlled by the same parent company
No. 6 Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. Controlled by the same parent company
No. Three Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. Controlled by the same parent company1722020
Name of other related parties Relationship with related party
CCCC First Highway Fifth Engineering Co. Ltd. Controlled by the same parent company
CCCC First Highway Electrification Engineering Co. Ltd Controlled by the same parent company
Haiwei Engineering Construction Co. Ltd. of FHEC of CCCC Controlled by the same parent company
Chongqing Yongjiang Expressway Investment and Construction Co. Ltd of FHEC of
CCCC Controlled by the same parent company
Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Leasing Jiahua No.2 Co. Ltd. Controlled by the same parent company
CCCC Leasing Jiahua No.1 Co. Ltd. Controlled by the same parent company
CNPC & CCCC Petroleum Sales Co. Ltd. Controlled by the same parent company
Hainan CCCC Fourth Harbor Construction Co. Ltd. Controlled by the same parent company
Electrification Co. Ltd. of CCCC Tunnel Engineering Company Limited Controlled by the same parent company
CTTIC Shanghai Co. Ltd. Controlled by the same parent company
Friede & Goldman Llc. Controlled by the same parent company
Other description
None
5 Related party transactions
(1) Purchase and sales of goods and rendering and receipt of labor services
Purchase of goods/receipt of labor services
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
No.2 Engineering Co. Ltd. of CCCC Third Harbor Engineering
Co. Ltd. Receipt of labor services 691422066 1559123096
CCCC Fourth Highway Engineering Co. Ltd. Receipt of labor services 306195275 326099884
CCCC Second Harbor Engineering Co. Ltd. Receipt of labor services 301152978 44626778
CCCC Third Harbor Engineering Co. Ltd. Receipt of labor services 204828721 138044572
CCCC First Highway Engineering Co. Ltd. Receipt of labor services 201690439 -
CCCC Tianjin Dredging Co. Ltd. Receipt of labor services 100525545 30385226
CCCC Third Highway Engineering Co. Ltd. Receipt of labor services 60479325 102954724
ZPMC Southeast Asia Pte. Ltd Receipt of labor services 59340652 31842242
Shanghai Communications Construction Contracting Co. Ltd. Receipt of labor services 36281828 3843677
No. 2 Engineering Co. Ltd. of CCCC Fourth Highway
Engineering Co. Ltd. Receipt of labor services 32430368 -
CCCC Water Transportation Planning and Design Institute
Co. Ltd. Receipt of labor services 26070990 44003688
Road & Bridge East China Engineering Co. Ltd. Receipt of labor services 23620159 -
CCCC Second Highway Engineering Co. Ltd. Receipt of labor services 21674421 -
CCCC First Highway Fifth Engineering Co. Ltd. Receipt of labor services 17768785 -
CCCC Worldcom (Chongqing) Heavy Industries Co. Ltd. Receipt of labor services 14309194 -
China Road & Bridge Corporation Receipt of labor services 10988748 9772546
CCCC Second Highway Consultants Co. Ltd. Receipt of labor services 5420288 12744480
China Communications Construction Company Ltd. Receipt of labor services 4388549 6970318
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Receipt of labor services 3690480 9022814
CCCC Third Harbor Consultants Co. Ltd. Receipt of labor services 3577982 400000
CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd Receipt of labor services 1834862 -173
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
Shanghai China Communications Water Transportation
Design & Research Co. Ltd. Receipt of labor services 1748853 1008394
CCCC First Harbor Consultants Co. Ltd. Receipt of labor services 1293585 128440
CCCC Xingyu Technology Co. Ltd Receipt of labor services 1291516 -
Shanghai Waterway Logistics Co. Ltd Receipt of labor services 1009174
Installation Engineering Co. Ltd. of CCCC First Harbor
Engineering Co. Ltd. Receipt of labor services 908257 7202999
CCCC Highway Consultants Co. Ltd. Receipt of labor services 258180 -
CCCC Marine Engineering & Technology Research Center
Co. Ltd. Receipt of labor services 207203 1599377
CCCC WuHan Harbour Engineering Design and Research
Co. Ltd. Receipt of labor services 68807 -
CCCC Shanghai Harbor Engineering Design & Research
Institute Co. Ltd. Receipt of labor services 55046 -
No.2 Engineering Co. Ltd. of CCCC Fourth Harbor
Engineering Co. Ltd. Receipt of labor services - 166442076
Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor
Engineering Co. Ltd. Receipt of labor services - 126919874
No.3 Co. of The Second Navigational Engineering Bureau
CCCC Receipt of labor services - 37974356
CCCC - SHEC Second Highway Engineering Co. Ltd. Receipt of labor services - 32728018
CCCC Shanghai Dredging Co. Ltd. Receipt of labor services - 27320344
China Communications Materials & Equipment Co. Ltd. Receipt of labor services - 17482045
CCCC Shanghai Equipment Engineering Co. Ltd. Receipt of labor services - 4533910
CCCC Highway Bridges National Engineering Research
Centre Co. Ltd. Receipt of labor services - 2449541
CCCC First Highway Consultants Co. Ltd. Receipt of labor services - 1153073
CCCC (Zhoushan) Dredging Co. Ltd. Receipt of labor services - 350748
No. Three Engineering Co. Ltd. of CCCC First Highway
Engineering Co. Ltd. Receipt of labor services - 343394
CCCC Fourth Harbor Engineering Co. Ltd Receipt of labor services - 86849
CCCC Shanghai Equipment Engineering Co. Ltd. Purchase of goods 645334160 51424063
ZPMC Changzhou Coatings Co. Ltd. Purchase of goods 83224897 145138516
CCCC Tianjin Industry and Trade Co. Ltd. Purchase of goods 66687672 1669824
Installation Engineering Co. Ltd. of CCCC First Harbor
Engineering Co. Ltd. Purchase of goods 61964860 -
Shanghai Jiangtian Industrial Co. Ltd. Purchase of goods 10044735 9429667
Chongqing Yongjiang Expressway Investment and
Construction Co. Ltd of FHEC of CCCC Purchase of goods 9557213 -
CCCC Shanghai Channel Equipment Industry Co. Ltd. Purchase of goods 3466483 320806
China Communications Construction Company Ltd. Purchase of goods 2254606 -
CCCC National Engineering Research Center of Dredging
Technology and Equipment Co. Ltd. Purchase of goods 2151725 -
CNPC & CCCC Petroleum Sales Co. Ltd. Purchase of goods 2047752 1475121
CCCC (Xiamen) Information Co. Ltd Purchase of goods 20971 -
Chuwa Bussan Co. Ltd. Purchase of goods - 36202211
CCCC Tianjin Port Waterway Prospection & Design Research
Institute Co. Ltd. Purchase of goods - 9951061
CCCC Tianjin Dredging Co. Ltd. Purchase of goods - 54752641742020
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
CCCC North Industrial Co. Ltd. Purchase of goods - 3841523
CCCC Marine Engineering & Technology Research Center
Co. Ltd. Purchase of goods - 2451616
China Communications Materials & Equipment Co. Ltd. Purchase of goods - 380531
CCCC Third Harbor Consultants Co. Ltd. Purchase of goods - 353982
China Road & Bridge Corporation Purchase of goods - 64214
Sales of goods/rendering of labor services
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
China Road & Bridge Corporation Sales of goods/other inflows 897728442 1678140641
CCCC Third Harbor Engineering Co. Ltd. Sales of goods/other inflows 424401835 113127045
CCCC Second Harbor Engineering Co. Ltd. Sales of goods/other inflows 283456305 337523772
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd Sales of goods/other inflows 231829678 248918845
Road & Bridge International Co. Ltd. Sales of goods/other inflows 229793506 95683938
CCCC Third Highway Engineering Co. Ltd. Sales of goods/other inflows 173821696 30678385
CCCC Second Highway Engineering Co. Ltd. Sales of goods/other inflows 138705156 230557910
CCCC Electrical and Mechanical Engineering Co. Ltd. Sales of goods/other inflows 88938053 124928355
China Communications Construction Company Ltd. Sales of goods/other inflows 78205835 231935329
CCCC First Harbor Consultants Co. Ltd. Sales of goods/other inflows 69444739 -
CCCC Tianjin Industry and Trade Co. Ltd. Sales of goods/other inflows 50952323 -
ZPMC-OTL MARINE CONTRACTOR LIMITED Sales of goods/other inflows 38016390 -
ZPMC Southeast Asia Pte. Ltd Sales of goods/other inflows 37632123 -
The First Construction Company of CCCC Second Harbor
Engineering Co. Ltd Sales of goods/other inflows 36724138 -
CCCC - SHEC Third Highway Engineering Co. Ltd. Sales of goods/other inflows 34008547 26395514
Installation Engineering Co. Ltd. of CCCC First Harbor
Engineering Co. Ltd. Sales of goods/other inflows 22123894 28657101
CCCC First Harbor Engineering Co. Ltd. Sales of goods/other inflows 20139620 6829633
CCCC First Highway Engineering Co. Ltd. Sales of goods/other inflows 14921008 126158585
China Harbour Engineering Co. Ltd. Sales of goods/other inflows 13927295 45102497
CCCC Tunnel Engineering Company Limited Sales of goods/other inflows 12218362 6135411
CCCC Yancheng Construction Development Co. Ltd. Sales of goods/other inflows 11855952 -
CCCC Shanghai Equipment Engineering Co. Ltd. Sales of goods/other inflows 8761075 -
The Third Engineering Company of CCCC Fourth Harbor
Engineering Co. Ltd Sales of goods/other inflows 6559140 -
CCCC First Highway Electrification Engineering Co. Ltd Sales of goods/other inflows 6129210 -
No.3 Co. of The Second Navigational Engineering Bureau
CCCC Sales of goods/other inflows 5053060 3750000
CCCC - SHEC Electrical Engineering Co. Ltd. Sales of goods/other inflows 4731690 -
CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd Sales of goods/other inflows 4698839 -
Beijing Rate Electronic Technology Developing Co. Ltd. Sales of goods/other inflows 3550889 -
CCCC Xi’an Road Construction Machinery Co. Ltd. Sales of goods/other inflows 1327434 -
CCCC International Shipping Co. Ltd Sales of goods/other inflows 1044785 -
Road & Bridge International Co. Ltd. Sales of goods/other inflows 78509 -
CCCC Financial Leasing Co. Ltd Sales of goods/other inflows - 667073687
CCCC Tianjin Dredging Co. Ltd. Sales of goods/other inflows - 26539740
CCCC Marine Engineering & Technology Research Center Co. Ltd. Sales of goods/other inflows - 8345339175
Amount incurred in Amount incurred in
Related party Content of transaction
the current period the previous period
Hong Kong Marine Construction Limited Sales of goods/other inflows - 7992047
CCCC Fourth Highway Engineering Co. Ltd. Sales of goods/other inflows - 7874250
No.3 Engineering Co. Ltd. of CCCC Third Harbor
Engineering Co. Ltd. Sales of goods/other inflows - 7230066
No.4 Engineering Co. Ltd. of CCCC Second Harbor
Engineering Co. Ltd. Sales of goods/other inflows - 6037290
Shanghai Communications Construction Contracting Co. Ltd. Sales of goods/other inflows - 12236
Total 2950779528 4065627616
Description of related party transactions of purchase and sales of goods rendering and receipt of labor services
□Applicable √Not applicable
(2) Trusteeship/contracting and entrustment/outsourcing
Trusteeship/contracting of the Company:
□Applicable √Not applicable
Description of the trusteeship/contracting with related parties
□Applicable √Not applicable
Entrustment/outsourcing of the Company
□Applicable √Not applicable
Management/outsourcing with related parties
□Applicable √Not applicable
(3) Leases with related parties
The Company as the lessor
□Applicable √Not applicable
The Company as the lessee:
□Applicable √Not applicable
Description of leases with related parties
□Applicable √Not applicable
(4) Guarantees with related parties
The company as the guarantor
□Applicable √Not applicable
The company as the guaranteed party
□Applicable √Not applicable
Description of the guarantees with related parties
□Applicable √Not applicable
(5) Lendings with related parties
□Applicable √Not applicable
(6) Assets transfer and debt restructuring of related parties
□Applicable √Not applicable
(7) Remuneration of key management personnel
√Applicable □Not applicable
Unit: 10000 Yuan Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management personnel 1206 1161
(8) Other related party transactions
√Applicable □Not applicable
1) Paying dividends to related parties
2020 2019
CCCC International (Hong Kong) Holdings Limited 45837792 -
China Communications Construction Company Ltd. 42777102 42777102
CCCG 33161169 33161169
CCCC Second Harbor Engineering Co. Ltd. 9682385 -
CCCC Highway Consultants Co. Ltd. 2420596 -
CCCC East China Investment Co. Ltd. 2420596 -1762020
2020 2019
Zhenhua Engineering Co. Ltd. - 44921036
Zhen Hwa Harbour Construction Co. Ltd. - 916756
136299640 121776063
2) Deposits in (withdrawal of deposits from) related parties
2020 2019
CCCC Finance Company Ltd. (360641890) 433312793
China Communications Construction Company Ltd. - (3733158)
(360641890) 429579635
3) Borrowings from related parties
2020 2019
CCCC Finance Company Ltd. 2500000000 50000000
CCCC Financial Leasing Co. Ltd 413000000 413361212
CCCC Leasing Jiahua No.1 Co. Ltd. 338980000 -
CCCC Xiongan Financial Leasing Co. Ltd 70000000 -
CCCC Financial Leasing (Guangzhou) Co. Ltd 51000000 -
3372980000 463361212
4) Interest collected from related parties
2020 2019
CCCC Finance Company Ltd. 297806 465261
China Communications Construction Company Ltd. - 2101285
297806 2566546
5) Interest paid to related parties
2020 2019
CCCC Finance Company Ltd. 13871667 18245229
CCCC Financial Leasing Co. Ltd 13795110 26460645
CCCC Leasing Jiahua No.1 Co. Ltd. 8537825 46946944
CCCC Leasing Jiahua No.2 Co. Ltd. 8537825 14691723
CCCC Xiongan Financial Leasing Co. Ltd 834444 -
CCCC Financial Leasing (Guangzhou) Co. Ltd 482639 -
46059510 106344541
6 Accounts receivable and payable by related parties
(1) Receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Related parties Book Provision for Book Provision for
balance bad debt balance bad debt
Accounts receivable CCCC Third Harbor Engineering Co. Ltd. 175013189 - 48017218 -
Accounts receivable Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 162823292 - 204812244 -
Accounts receivable CCCC First Harbor Engineering Co. Ltd. 121988778 - 130700172 -
Accounts receivable CCCC Second Harbor Engineering Co. Ltd. 110819885 - 112525256 -177
December 31 2020 December 31 2019
Item Related parties Book Provision for Book Provision for
balance bad debt balance bad debt
Accounts receivable No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 59832510 - 59832510 -
Accounts receivable CCCC Second Highway Engineering Co. Ltd. 56896049 - 104419393 -
Accounts receivable China Communications Construction Company Ltd. 41920389 - 44091360 -
Accounts receivable CCCC Electrical and Mechanical Engineering Co. Ltd. 29971240 - -
Accounts receivable CCCC - SHEC Fourth Highway Engineering Co. Ltd. 29418356 - -
Accounts receivable CCCC First Harbor Consultants Co. Ltd. 28927082 - 13290419 -
Accounts receivable China Harbour Engineering Co. Ltd. 24508151 - 7338237 -
Accounts receivable ZPMC-OTL MARINE CONTRACTOR LIMITED 23195911 - 33140688 -
Accounts receivable Road & Bridge International Co. Ltd. 21011580 55526242 -
Accounts receivable The First Construction Company of CCCC Second Harbor Engineering Co. Ltd 17956828 - 21712500 -
Accounts receivable CCCC Tianjin Industry and Trade Co. Ltd. 17469938 - 5058290 -
Accounts receivable ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 15791610 - 19559532 -
Accounts receivable ZPMC Southeast Asia Pte. Ltd 15550746 - 3097777 -
Accounts receivable Friede & Goldman Llc. 15517772 - 17890465 -
Accounts receivable Xiangtan CCCC Infrastructure Investment and Construction Co. Ltd. 15052800 - 15052800 -
Accounts receivable CCCC Third Harbor Consultants Co. Ltd. 13766470 - 150000 -
Accounts receivable Binhai Environmental Protection Dredging Co. Ltd. of CCCC Tianjin Dredging Co. Ltd. 13550085 - -
Accounts receivable Zhenhua Marine Energy (HK) Co. Ltd. 11235878 - 12013016 -
Accounts receivable CCCC Fourth Harbor Engineering Co. Ltd 10500000 - 12750000 -
Accounts receivable Chuwa Risheng (Beijing) International Trade Co. Ltd 10498227 - -
Accounts receivable CCCC International Shipping Co. Ltd 10116795 - -
Accounts receivable CCCC Fourth Harbor Consultants Co. Ltd. 7398000 - 14796000 -
Accounts receivable No. 6 Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. 6098300 - 6098300 -
Accounts receivable Road & Bridge International Co. Ltd. 4343950 - 6953532 -
Accounts receivable CCCC - SHEC Second Highway Engineering Co. Ltd. 3225975 - 8125713 -
Accounts receivable Shanghai Interlink Road&Bridge Engineering Co. Ltd. 1900000 - - -
Accounts receivable CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd 1798872 - -
Accounts receivable CCCC First Highway Electrification Engineering Co. Ltd 1714091 - - -
Accounts receivable CCCC - SHEC Third Highway Engineering Co. Ltd. 1015313 - 1015313 -
Accounts receivable CCCC - SHEC Railway Construction Co. Ltd 727743 - - -
Accounts receivable No.2 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. 499367 - 6199367 -
Accounts receivable Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 386912 - 1311259 -
Accounts receivable CCCC Xi’an Road Construction Machinery Co. Ltd. 350000 - - -
Accounts receivable Shanghai Jiangtian Industrial Co. Ltd. 340862 - - -
Accounts receivable Beijing Rate Electronic Technology Developing Co. Ltd. 303954 - - -
Accounts receivable CCCC Shanghai Dredging Co. Ltd. 286500 - - -
Accounts receivable Road & Bridge South China Engineering Co. Ltd 232040 - 13178839 -
Accounts receivable CCCC Third Highway Engineering Co. Ltd. 156370 - 11363591 -1782020
December 31 2020 December 31 2019
Item Related parties Book Provision for Book Provision for
balance bad debt balance bad debt
Accounts receivable No.3 Co. of The Second Navigational Engineering Bureau CCCC 142296 - 23938106 -
Accounts receivable CCCC Financial Leasing Co. Ltd 117643 - 226485073 -
Accounts receivable Hainan Industry Co. Ltd. of CCCC Tianjin Dredging Co. Ltd. 107834 - 2156675 -
Accounts receivable CCCC Guangzhou Dredging Co. Ltd. 69200 - 69200 -
Accounts receivable CCCC Guidu Highway Construction Co. Ltd. 63951 - 79332 -
Accounts receivable Yueyang Chenglingji New Port Co. Ltd. 53121 - 48680 -
Accounts receivable CCCC Tunnel Engineering Company Limited - - 92085891 -
Accounts receivable CCCC First Highway Engineering Co. Ltd. - - 43230857 -
Accounts receivable China Road & Bridge Corporation - - 18076000 -
Accounts receivable CCCC Marine Engineering & Technology Research Center Co. Ltd. - - 12822927 -
Accounts receivable Hainan CCCC Fourth Harbor Construction Co. Ltd. - - 6200000 -
Accounts receivable CCCC Shanghai Equipment Engineering Co. Ltd. - - 6000000 -
Accounts receivable CCCC-FHEC Urban Traffic Engineering Co. Ltd. - - 4303584 -
Accounts receivable CCCC Fourth Highway Engineering Co. Ltd. - - 4000000 -
Accounts receivable No. Three Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. - - 1126432 -
Accounts receivable CCCC - SHEC Electrical Engineering Co. Ltd. - - 770321 -
Accounts receivable Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. - - 331860 -
Accounts receivable Electrification Co. Ltd. of CCCC Tunnel Engineering Company Limited - - 172787 -
Accounts receivable No.2 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. - - 130500 -
Receivables
financing Road & Bridge International Co. Ltd. 21000000 - - -
Receivables No.4 Engineering Co. Ltd. of CCCC Second
financing Harbor Engineering Co. Ltd. 10000000 - - -
Receivables
financing CCCC Second Highway Engineering Co. Ltd. 8000000 - - -
Receivables CCCC - SHEC Second Highway Engineering Co.financing Ltd. 8000000 - - -
Receivables CCCC Tianhe Mechanical Equipment
financing Manufacturing Co. Ltd 2482170 - - -
Receivables
financing CCCC Third Highway Engineering Co. Ltd. 1789772 - -
Receivables
financing CCCC Third Harbor Engineering Co. Ltd. 1000000 - - -
Receivables
financing CCCC First Harbor Engineering Co. Ltd. 500000 - 4000000 -
Receivables
financing Road & Bridge East China Engineering Co. Ltd. - - 46389055 -
Receivables
financing CCCC Second Harbor Engineering Co. Ltd. - - 15998000 -
Receivables
financing CCCC Fourth Harbor Engineering Co. Ltd - - 8045547 -
Receivables CCCC Electrical and Mechanical Engineering Co.financing Ltd. - - 2000000 -179
December 31 2020 December 31 2019
Item Related parties Book Provision for Book Provision for
balance bad debt balance bad debt
Other receivables Zhenhua Marine Energy (HK) Co. Ltd. 164124678 164124678 164124678 164124678
Other receivables ZPMC Southeast Asia Pte. Ltd 13890516 - 13890516 -
Other receivables CCCC Yancheng Construction Development Co. Ltd. 1801634 - 3357729 -
Other receivables China Communications Construction Company Ltd. 518781 - 47845576 -
Other receivables China Road & Bridge Corporation 215492 - - -
Other receivables Shanghai Jiangtian Industrial Co. Ltd. 77552 - 77552 -
Other receivables Haiwei Engineering Construction Co. Ltd. of FHEC of CCCC 500 - - -
Other receivables CCCC Financial Leasing Co. Ltd - - 20000000 -
Other receivables CCCC Third Harbor Engineering Co. Ltd. - - 11312360 -
Other receivables CCCC East China Investment Co. Ltd. - - 9129287 -
Other receivables CCCC First Highway Fifth Engineering Co. Ltd. - - 8897903 -
Other receivables CCCC Highway Consultants Co. Ltd. - - 4629287 -
Other receivables No.3 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. - - 3975000 -
Other receivables CCCC Tianhe Xi’an Equipment Manufacturing Co. Ltd. - - 3199744 -
Other receivables CCCC Second Highway Consultants Co. Ltd. - - 3180000 -
Other receivables CCCC Third Highway Engineering Co. Ltd. - - 3132473 -
Other receivables CCCC Marine Engineering & Technology Research Center Co. Ltd. - - 1100000 -
Other receivables Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. - - 600000 -
Other receivables CCCC Second Highway Engineering Co. Ltd. - - 200000 -
Other receivables CCCC Tunnel Engineering Company Limited - - 60000 -
Other receivables Shanghai Zhensha Longfu Machinery Co. Ltd. - - 21503 -
Other receivables CCCC Second Harbor Engineering Co. Ltd. - - 10000
Other receivables ZPMC Changzhou Coatings Co. Ltd. - - 4214
Advances to
suppliers Road & Bridge East China Engineering Co. Ltd. 23200357 - -
Advances to CCCC Shanghai Channel Equipment Industry Co.suppliers Ltd. 9347000 - - -
Advances to CCCC National Engineering Research Center of
suppliers Dredging Technology and Equipment Co. Ltd. 8264000 - - -
Advances to
suppliers CCCC Second Harbor Consultants Co. Ltd. 731601 - - -
Advances to CCCC Marine Engineering & Technology Research
suppliers Center Co. Ltd. 717739 - 767382 -
Advances to
suppliers CCCC-SHEC Construction Engineering Co. Ltd 2000 - - -
Advances to
suppliers ZPMC Southeast Asia Pte. Ltd - - 102910 -
Contract assets Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 29068026 - - -
Contract assets CCCC Second Harbor Engineering Co. Ltd. 21898621 - - -
Contract assets CCCC Financial Leasing Co. Ltd 14770690 - - -
Contract assets CCCC Second Highway Engineering Co. Ltd. 13468405 - - -
Contract assets CCCC First Harbor Engineering Co. Ltd. 12588620 - - -
Contract assets Road & Bridge International Co. Ltd. 11001670 - - -1802020
December 31 2020 December 31 2019
Item Related parties Book Provision for Book Provision for
balance bad debt balance bad debt
Contract assets CCCC - SHEC Second Highway Engineering Co. Ltd. 10821112 - - -
Contract assets CCCC Electrical and Mechanical Engineering Co. Ltd. 10050000 - - -
Contract assets CCCC Third Harbor Engineering Co. Ltd. 9530062 - - -
Contract assets CCCC First Harbor Consultants Co. Ltd. 3472237 - - -
Contract assets Road & Bridge South China Engineering Co. Ltd 3064962 - - -
Contract assets CCCC Tianjin Industry and Trade Co. Ltd. 1528570 - - -
Contract assets CCCC Third Highway Engineering Co. Ltd. 973366 - - -
Long-term
receivables CCCC Third Highway Engineering Co. Ltd. - - 797873 -
(2) Payables
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Ending book Beginning book
Item Related parties
balance balance
Accounts payable CCCC Second Harbor Engineering Co. Ltd. 195112843 27440101
Accounts payable CCCC Third Harbor Engineering Co. Ltd. 190480435 154812290
Accounts payable CCCC Fourth Highway Engineering Co. Ltd. 154901564 218797193
Accounts payable CCCC First Highway Engineering Co. Ltd. 82536113 71000831
Accounts payable CCCC Tianjin Dredging Co. Ltd. 42519453 78800497
Accounts payable CCCC Shanghai Equipment Engineering Co. Ltd. 42317791 81410402
Accounts payable Shanghai Communications Construction Contracting Co. Ltd. 25385550 13225998
Accounts payable Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 24122512 77599
Accounts payable CCCC Second Highway Consultants Co. Ltd. 24021890 25578962
Accounts payable No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 23818225 23818225
Accounts payable CCCC Shanghai Channel Equipment Industry Co. Ltd. 20550148 -
Accounts payable CCCC Second Highway Engineering Co. Ltd. 16875119 -
Accounts payable ZPMC Southeast Asia Pte. Ltd 16356162 7070528
Accounts payable Shanghai Jiangtian Industrial Co. Ltd. 16153063 13898988
Accounts payable CCCC Worldcom (Chongqing) Heavy Industries Co. Ltd. 15597022 -
Accounts payable ZPMC Changzhou Coatings Co. Ltd. 12809629 15695707
Accounts payable CCCC National Engineering Research Center of Dredging Technology and Equipment Co. Ltd. 12460428 5205113
Accounts payable CCCC First Harbor Consultants Co. Ltd. 9925376 8694176
Accounts payable No.3 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. 7815018 7815018
Accounts payable CCCC Shanghai Dredging Co. Ltd. 7571156 13133517
Accounts payable No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. 7089932 -
Accounts payable CCCC Tianjin Industry and Trade Co. Ltd. 5449146 3589681
Accounts payable Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. 4327352 4327352
Accounts payable Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 4318500 10136028
Accounts payable CCCC Marine Engineering & Technology Research Center Co. Ltd. 3325742 12919599
Accounts payable Friede & Goldman Llc. 2582443 -
Accounts payable CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd 2000000 -
Accounts payable ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 1615788 336127
Accounts payable CNPC & CCCC Petroleum Sales Co. Ltd. 821582 391056
Accounts payable No.2 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. 800000 1600000181
Ending book Beginning book
Item Related parties
balance balance
Accounts payable Shanghai China Communications Water Transportation Design & Research Co. Ltd. 740000 538750
Accounts payable CCCC First Harbor Engineering Co. Ltd. 517150 15754549
Accounts payable Chongqing Yongjiang Expressway Investment and Construction Co. Ltd of FHEC of CCCC 323990 -
Accounts payable Zhenhua (Singapore) Engineering Co. Ltd 202231 -
Accounts payable CCCC Third Highway Engineering Co. Ltd. 176730 81247665
Accounts payable CCCC (Xiamen) Information Co. Ltd 101136 -
Accounts payable CCCC Third Harbor Consultants Co. Ltd. 100000 385980
Accounts payable CCCC WuHan Harbour Engineering Design and Research Co. Ltd. 75000 700000
Accounts payable CCCC Shanghai Harbor Engineering Design & Research Institute Co. Ltd. 60000 -
Accounts payable No.2 Engineering Co. Ltd. of CCCC Fourth Harbor Engineering Co. Ltd. - 125024626
Accounts payable CCCC - SHEC Second Highway Engineering Co. Ltd. - 30900741
Accounts payable No.3 Co. of The Second Navigational Engineering Bureau CCCC - 28660487
Accounts payable CCCC - SHEC Third Highway Engineering Co. Ltd. - 10012230
Accounts payable CCCC Water Transportation Planning and Design Institute Co. Ltd. - 6547891
Accounts payable CCCC North Industrial Co. Ltd. - 3228777
Accounts payable CCCC Highway Bridges National Engineering Research Centre Co. Ltd. - 2670000
Accounts payable CCCC Tunnel Engineering Company Limited - 1477308
Accounts payable CCCC First Highway Consultants Co. Ltd. - 574560
Accounts payable CCCC Electrical and Mechanical Engineering Co. Ltd. - 501000
Accounts payable Construction Materials Co. Ltd CCCC Third Harbor Engineering Co. Ltd. - 150000
Accounts payable China Communications Materials & Equipment Co. Ltd. - 30000
Accounts payable CTTIC Shanghai Co. Ltd. - 120000
Notes payable CCCC Shanghai Equipment Engineering Co. Ltd. 41823373 42912082
Notes payable CCCC Third Harbor Engineering Co. Ltd. 15918000 -
Notes payable CCCC Tianjin Industry and Trade Co. Ltd. 13100000 66393976
Notes payable ZPMC Changzhou Coatings Co. Ltd. 11800000 -
Notes payable CCCC Second Highway Engineering Co. Ltd. 6750000 -
Notes payable Road & Bridge East China Engineering Co. Ltd. 3000000 -
Notes payable Shanghai China Communications Water Transportation Design & Research Co. Ltd. 432500 -
Notes payable CCCC National Engineering Research Center of Dredging Technology and Equipment Co. Ltd. - 2322000
Notes payable No. Three Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. - 374300
Notes payable CCCC (Zhoushan) Dredging Co. Ltd. - 246887
Contract liabilities China Road & Bridge Corporation 741065613 -
Contract liabilities CCCC Electrical and Mechanical Engineering Co. Ltd. 257469485 -
Contract liabilities Xiangtan CCCC Infrastructure Investment and Construction Co. Ltd. 106194690 -
Contract liabilities CCCC First Harbor Engineering Co. Ltd. 52141593 -
Contract liabilities CCCC Financial Leasing Co. Ltd 41277876 -
Contract liabilities No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 30995575 -
Contract liabilities Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 16871857 -
Contract liabilities CCCC Third Highway Engineering Co. Ltd. 13387655 -
Contract liabilities CCCC Second Harbor Engineering Co. Ltd. 10492066 -
Contract liabilities CCCC Third Harbor Engineering Co. Ltd. 4488752 -
Contract liabilities China Harbour Engineering Co. Ltd. 818899 -
Contract liabilities ZPMC Southeast Asia Pte. Ltd 489368 -1822020
Ending book Beginning book
Item Related parties
balance balance
Contract liabilities Cranetech Global Sdn. Bhd. 217932 -
Contract liabilities Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. 200000 -
Contract liabilities No.2 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 188679 -
Contract liabilities CCCC Shanghai Equipment Engineering Co. Ltd. 100000 -
Contract liabilities Friede & Goldman Llc. 11830 -
Contract liabilities CCCC Second Highway Engineering Co. Ltd. 3706 -
Contract liabilities No.2 Engineering Co. Ltd. of CCCC Fourth Harbor Engineering Co. Ltd. 71 -
Advances from
customers CCCC Tunnel Engineering Company Limited - 124057549
Advances from Binhai Environmental Protection Dredging Co. Ltd. of CCCC Tianjin Dredging
customers Co. Ltd. - 53943315
Advances from
customers No.3 Co. of The Second Navigational Engineering Bureau CCCC - 13651291
Advances from
customers Wuhan Hangke Logistics Company Limited - 5801268
Advances from
customers CCCC Second Harbor Engineering Co. Ltd. - 4005140
Advances from
customers CCCC First Highway Engineering Co. Ltd. - 4000000
Advances from
customers CCCC Yancheng Construction Development Co. Ltd. - 1340000
Advances from
customers No.8 Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. - 1200000
Advances from
customers CCCC SHEC Chengdu Urban Construction Engineering Co. Ltd. - 942101
Advances from
customers Road & Bridge International Co. Ltd. - 832675
Advances from
customers ZPMC-OTL MARINE CONTRACTOR LIMITED - 749244
Advances from
customers Friede & Goldman Llc. - 713623
Advances from
customers CCCC Third Harbor Engineering Co. Ltd. - 600000
Advances from
customers No. Three Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. - 600000
Advances from
customers Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd - 366574
Advances from
customers China Harbour Engineering Co. Ltd. - 346318
Advances from
customers CranetechGlobalSdn.Bhd. - 233005
Advances from
customers CCCC Shanghai Equipment Engineering Co. Ltd. - 100000
Advances from Transportation Construction Engineering Branch of CCCC Third Harbor
customers Engineering Co. Ltd. - 56758
Other payables CCCC Third Harbor Engineering Co. Ltd. 5365564 804250
Other payables CCCC Fourth Highway Engineering Co. Ltd. 5039639 -
Other payables CCCC Third Highway Engineering Co. Ltd. 4924698 3006596
Other payables Shanghai Jiangtian Industrial Co. Ltd. 4586085 4586085
Other payables CCCC East China Investment Co. Ltd. 4130000
Other payables CCCC Tianjin Dredging Co. Ltd. 2000000 28187053
Other payables CCCG 1649724 1600544183
Ending book Beginning book
Item Related parties
balance balance
Other payables No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. 1491318 -
Other payables CCCC Electrical and Mechanical Engineering Co. Ltd. 665174 665174
Other payables Zhenhua Engineering Co. Ltd. 346005 346005
Other payables Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 335537 250329
Other payables CCCC Second Harbor Engineering Co. Ltd. 295750 1051750
Other payables ZPMC Changzhou Coatings Co. Ltd. 107100 108592
Other payables CCCC Shanghai Equipment Engineering Co. Ltd. 100000 89000
Other payables CCCC Shanghai Harbor Engineering Design & Research Institute Co. Ltd. 30000 -
Other payables Zhen Hwa Harbour Construction Co. Ltd. 6593 6593
Other payables China Communications Construction Company Ltd. 116 101284894
Other payables Chuwa Bussan Co. Ltd. - 6269873
Other payables CCCC Tunnel Engineering Company Limited - 4000000
Other payables China Harbour Engineering Co. Ltd. - 3625000
Other payables Road & Bridge East China Engineering Co. Ltd. - 448442
Other payables CCCC Water Transportation Planning and Design Institute Co. Ltd. - 319340
Other payables CNPC & CCCC Petroleum Sales Co. Ltd. - 300000
Other payables Shanghai Zhensha Longfu Machinery Co. Ltd. - 150124
Other payables No.2 Engineering Co. Ltd. of CCCC Fourth Harbor Engineering Co. Ltd. - 100000
Other payables CCCC First Harbor Engineering Co. Ltd. - 87893
Other payables CCCC Infrastructure Maintenance Group Co. Ltd. - 72477
Other payables CCCC Nanjing Traffic Engineering Management Co. Ltd. - 21288
Short-term
borrowings CCCC Finance Company Ltd. 2501498333 -
Short-term
borrowings CCCC Financial Leasing Co. Ltd 415625023 414863968
Short-term
borrowings CCCC Xiongan Financial Leasing Co. Ltd 70134444 -
Short-term
borrowings CCCC Financial Leasing (Guangzhou) Co. Ltd 51145242 -
Long-term
borrowings CCCC Finance Company Ltd. - 500483333
Non-current liabilities
due within one year CCCC Leasing Jiahua No.1 Co. Ltd. 231789305 412592400
Non-current liabilities
due within one year CCCC Financial Leasing Co. Ltd - 203727814
Non-current liabilities
due within one year CCCC Leasing Jiahua No.2 Co. Ltd. 123040972 63782400
Long-term payables CCCC Leasing Jiahua No.1 Co. Ltd. 217496667 131551200
Long-term payables CCCC Tianjin Dredging Co. Ltd. 139682457 139682457
Long-term payables CCCC Second Harbor Engineering Co. Ltd. 60830418 82663041
Long-term payables CCCC Fourth Highway Engineering Co. Ltd. 39558526 -
Long-term payables CCCC Third Harbor Engineering Co. Ltd. 32345147 16923594
Long-term payables No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. 9520885 -
Long-term payables CCCC - SHEC Third Highway Engineering Co. Ltd. 2012230 -
Long-term payables CCCC Tunnel Engineering Company Limited 877307 -
Long-term payables CCCC - SHEC Second Highway Engineering Co. Ltd. 125862 -
Long-term payables CCCC Leasing Jiahua No.2 Co. Ltd. - 131551201
Long-term payables No.2 Engineering Co. Ltd. of CCCC Fourth Harbor Engineering Co. Ltd. - 77882411842020
7 Commitments with related parties
√Applicable □Not applicable
The Group's commitments related to related party contracted for but not provided in the balance sheet as at the balance
sheet date:
Rendering of services for the Group by related parties 2020 2019
CCCC Third Harbor Engineering Co. Ltd. 1196441876 1274486284
CCCC Tianjin Dredging Co. Ltd. 846472448 681997993
CCCC First Highway Engineering Co. Ltd. 779111939 1386937372
CCCC First Highway Fifth Engineering Co. Ltd. 388366210 -
No.2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. 305931400 -
No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 56568996 56568996
Shanghai Communications Construction Contracting Co. Ltd. 9650296 -
CCCC Tunnel Engineering Company Limited 158070 158070
CCCC Fourth Highway Engineering Co. Ltd. - 338361768
CCCC Shanghai Dredging Co. Ltd. - 45932122
3582701235 3784442605
Standby leasing agreement signed with the related parties
On December 16 2015 the Company signed ship rental standby agreement with CCCC Leasing Jiahua No.1 Co. Ltd
and CCCC Leasing Jiahua No.2 Co. Ltd (collectively referred to as “CCCC Jiahua”) with the rental term from March 5 2016
to December 5 2021.The contract would come into effect when the ship rental agreement signed by the subsidiary of the
Company and CCCC Jiahua couldn’t be performed normally. As at December 31 2020 the maximum payment amount of
the contract was RMB 246081944 (as at December 31 2019: RMB 390667201).Lease assets to related parties 2020 2019
Zhenhua Marine Energy (Hong Kong) Co. Ltd. 575994244 891356781
2020 2019
China Road & Bridge Corporation 588402357 830028535
CCCC Second Harbor Engineering Co. Ltd. 519496777 53549590
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 399731755 15936240
CCCC Third Harbor Engineering Co. Ltd. 355392406 5470566
CCCC Second Highway Engineering Co. Ltd. 292697870 182569664
Road & Bridge International Co. Ltd. 247634918 -
CCCC Third Highway Engineering Co. Ltd. 179310027 -
CCCC First Harbor Engineering Co. Ltd. 160455055 1795091
CCCC Tianjin Industry and Trade Co. Ltd. 119409937 -
Road & Bridge International Co. Ltd. 89878258 -
China Highway Engineering Consultants Corporation 85327728 -
CCCC Fourth Harbor Engineering Co. Ltd 56200000 -
Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 13919210 -
CCCC Electrical and Mechanical Engineering Co. Ltd. 11561947 35920354
CCCC First Harbor Consultants Co. Ltd. 10594847 -
The First Construction Company of CCCC Second Harbor Engineering Co. Ltd 5875862 -
China Communications Construction Company Ltd. 3988354 153839131
CCCC Shanghai Equipment Engineering Co. Ltd. 1423925 -
CCCC Financial Leasing Co. Ltd - 54987809
China Harbour Engineering Co. Ltd. - 22547495
Friede & Goldman Llc. - 21714704
No.3 Co. of The Second Navigational Engineering Bureau CCCC - 14538
3141301233 1378373717185
8 Others
√Applicable □Not applicable
Monetary funds deposited in the related parties
2020 2019
CCCC Finance Company Ltd. 75000000 435344084
XIII Share-based payment
1 General of share based payment
□Applicable √Not applicable
2 Equity-settled share-based payments
□Applicable √Not applicable
3 Cash-settled share-based payments
□Applicable √Not applicable
4 Modification and termination of share-based payment
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
XIV Commitments and contingencies
1 Significant commitments
√Applicable □Not applicable
Significant external commitments nature and amount on the balance sheet date
(1) Matters related to capital expenditure commitments
Commitments related to capital expenditure contracted for but not provided in the financial statements as at the balance
sheet date:
2020 2019
Buildings and constructions machinery equipment 707709990 591419876
(2) Commitments related to operating lease
According to the irrecoverable operating lease contract concluded the Group will at least pay rental as follows:
2020 2019
Within 1 year 21723707 32650110
1-2 years 11694538 20566302
2-3 years 294541 11239044
Over 3 years 4500 132596
33717286 64588052
(3) L/C commitments
The Group had entrusted the bank to issue several L/Cs to purchase imported components and parts. As at December
31 2020 the unpaid amount under the L/Cs was about RMB 1397778837 (as at December 31 2019: RMB 1698125301).2 Contingencies
(1) Significant contingencies on the balance sheet date
√Applicable □Not applicable
In August 2020 All-China Environment Federation sued the Company and Shanghai Zhenhua Heavy Industries Co.Ltd. Changxing Branch (hereinafter referred to as “Changxing Branch”) to Shanghai No. 3 Intermediate People’s Court for air
pollution liability dispute with the case No. (2020) H 03 MC 274.1862020
Changxing Branch and the Company attached great importance to this event and established a special working group
to actively communicate with the Federation. The Company and the Federation reached a settlement intention and jointly
expressed such intention to the court. On January 25 2021 Shanghai No. 3 Intermediate People’s Court entrusted Nanjing
Institute of Environmental Sciences MEE (hereinafter referred to as “Nanjing Institute”) to evaluate the damages deductible
exemption items and deductible deduction items involved in this case. According to the current progress the Company
judges that the case is likely to be settled by settlement. According to the current practice of environmental civil public
interest litigation in China the Company preliminarily judges that if the deductible items are supported by the court the
amount of alternative restoration costs will be reduced to a certain extent.As of the approval date of the financial statements Nanjing Institute has not yet carried out the appraisal work the
settlement agreement has not been reached and the case has not entered the formal hearing stage. Therefore the
Company is unable to make a reliable estimate of the result of the case and the possibility and amount of the loss caused by
the case. The Company will continue to follow up the impact of the case.
(2) If the company has no significant contingencies to be disclosed it shall also explain:
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
XV Post balance sheet events
1 Significant non-adjustment events
□Applicable √Not applicable
2 Profit distribution
□Applicable √Not applicable
3 Sales return
□Applicable √Not applicable
4 Description of other post balance sheet events
□Applicable √Not applicable
XVI.Other significant events
1 Correction of previous accounting errors
(1) Retrospective restatement
□Applicable √Not applicable
(2) Prospective application
□Applicable √Not applicable
2 Debt restructuring
√Applicable □Not applicable
The group and the debtor signed the Debt Repayment Framework Agreement which agreed to use a newly developed
commercial property and three sets of self-owned equipment of the debtor to offset the loan owed. When the debt-offsetting
assets had no right defects and the ownership change had been completed the rights and obligations of both parties shall
be terminated and the claims and debts shall be extinguished. As of December 31 2020 the ownership transfer of the debt-
offsetting property had been completed. The Group recognized the fair value of the abandoned claims according to the fair
value of the property received and reversed the bad debt provision for accounts receivable of RMB 64230500.3 Assets exchange
(1) Non-monetary assets exchange
□Applicable √Not applicable
(2) Other assets exchange
□Applicable √Not applicable187
4 Pension plan
□Applicable √Not applicable
5 Discontinuing operations
□Applicable √Not applicable
6 Segments
(1) Determination basis and accounting policies of reporting segment
√Applicable □Not applicable
The Group determines operating segments based on internal organization structure management requirements and internal
reporting system determines reporting segments based on operating segments and disclose the information of the segments.Operating segment refers to the component part of the Group that meet the following requirements: (1) it can generate
income and expenses in daily activities; (2) the management of the Group can regularly evaluate its operating results
to determine its allocation of resources and to evaluate its performance; (3) the Group is able to obtain its accounting
information regarding financial position operating results and cash flows etc. If two or more operating segments have similar
economic characteristics and have met a certain conditions they will be merged into one operating segment.The Group identified the business as an operating segment for analysis and assessment based on internal organization
structure management requirement and internal report system.
(2) Financial information of reporting segment
□Applicable √Not applicable
(3) If the Company has no reporting segments or cannot disclose the total assets and liabilities of each reporting
segment the reasons shall be stated
□Applicable √Not applicable
(4) Other description
√Applicable □Not applicable
Product and labor information
Income from external transactions
2020 2019
Port machinery 14457042916 16458563164
Heavy equipment 1062669195 1491597749
“Building-transfer” project and engineering construction 2365760874 2564145018
Steel structure and related income 3277507651 2709430977
Shipping and others 1233658739 989117844
Sales of materials 71730251 84343163
Equipment lease and others 186772026 298389968
22655141652 24595587883
Geographic information
Income from external transactions
2020 2019
Chinese Mainland 13203886125 12728821429
Asia (excluding Chinese Mainland) 3289553492 3469961193
Europe 2604103174 3416405499
North America 1345494819 2205954534
Africa 468958316 761455510
South America 444522956 963140369
Chinese Mainland (export sales) 1061063332 697069989
Oceania 237559438 352779360
22655141652 24595587883
The income from external transaction is attributable to where the customer is located.1882020
Total non-current assets
2020 2019
Chinese Mainland 18150805488 22450499096
Asia (excluding Chinese Mainland) 9939268779 7270356589
Others 66235993 41013037
28156310260 29761868722
The non-current assets are attributable to where they are located excluding financial assets long-term equity
investment goodwill deferred income tax assets and other non-current assets.7 Other significant transactions and events with impacts on investors' decisions
□Applicable √Not applicable
8 Others
□Applicable √Not applicable
XVII. Notes to main items of the financial statements of the parent company
1 Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Aging Ending book balance
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 14603912380
1-2 years 783348172
2-3 years 215669424
Over 3 years
3-4 years 140879067
4-5 years 333537300
Over 5 years 1059689113
Total 17137035456
(2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Category Book balance Provision for bad debts Book balance Provision for bad debts
Proportion Proportion of Book value Book valueAmount (%) Amount provision (%) Amount
Proportion Proportion of
(%) Amount provision (%)
Provision for bad debts accrued on an
660986510 4 529388510 80 131598000 753396385 5 591042385 78 162354000
individual basis
Including:
Provision for bad debts by portfolio 16476048946 96 1274320722 8 15201728224 15325782241 95 1090238346 7 14235543895
Including
Total 17137035456 / 1803709232 / 15333326224 16079178626 / 1681280731 / 14397897895189
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Accounts receivable 1 277613400 146015399 53 Counterparty financial shortage
Accounts receivable 2 187863245 187863246 100 Contract dispute
Accounts receivable 3 93954000 93954000 100 Counterparty financial shortage
Accounts receivable 4 42979947 42979947 100 Contract dispute
Accounts receivable 5 26099665 26099665 100 Contract dispute
Accounts receivable 6 11037000 11037000 100 Contract dispute
Accounts receivable 7 8103043 8103043 100 Contract dispute
Accounts receivable 8 6980371 6980371 100 Contract dispute
Accounts receivable 9 3300179 3300179 100 Contract dispute
Accounts receivable 10 2236498 2236498 100 Contract dispute
Accounts receivable 11 819162 819162 100 Contract dispute
Total 660986510 529388510 80 /
Description of individual provision for bad debts:
√Applicable □Not applicable
As at December 31 2019 the accounts receivables with individual provision for bad debts are as follows:
Book balance Provision for bad debts Estimated credit loss ratio % Reason for provision
Accounts receivable 1 324708000 162354000 50 Counterparty financial shortage
Accounts receivable 2 182958900 182958900 100 Contract dispute
Accounts receivable 3 158184500 158184500 100 Counterparty financial shortage
Accounts receivable 4 27904870 27904870 100 Contract dispute
Accounts receivable 5 26911147 26911147 100 Contract dispute
Accounts receivable 6 10748869 10748869 100 Contract dispute
Accounts receivable 7 7815500 7815500 100 Contract dispute
Accounts receivable 8 7463174 7463174 100 Contract dispute
Accounts receivable 9 3582135 3582135 100 Contract dispute
Accounts receivable 10 2224013 2224013 100 Contract dispute
Accounts receivable 11 895277 895277 100 Contract dispute
753396385 591042385
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss please refer to other
receivables for disclosure:
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
The recovered or reversed provision for bad debts with significant amount:
□Applicable √Not applicable
(4) Accounts receivable actually written off in the current period
□Applicable √Not applicable
Write-off of important accounts receivable
□Applicable √Not applicable
(5) Top 5 accounts receivable in terms of ending balance presented by debtor
√Applicable □Not applicable
As at December 31 2020 top 5 accounts receivable in terms of ending balance presented by debtor summarized and
analyzed as follows:1902020
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 9712993888 242665746 57
As at December 31 2019 top 5 accounts receivable in terms of ending balance presented by debtor are summarized
and analyzed as follows:
Proportion in total balance of
Balance Provision for bad debts
accounts receivable %
Total accounts receivable of top 5 balances 6205808563 30765484 49
(6) Accounts receivable derecognized due to the transfer of financial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
2020 2019
Expected credit Expected credit
Book balance of Estimated credit Book balance of Estimated credit
loss for the entire loss for the entire
estimated default loss ratio (%) estimated default loss ratio (%)
duration duration
Within 1 year 14580148080 2 243597549 8402385557 1 72727500
1-2 years 736555945 30 224110942 1158723629 4 51346322
2-3 years 114949424 39 44717622 1354366423 5 69254171
3-4 years 140722707 68 96047068 253416207 29 73708832
4-5 years 176263900 36 64286079 182871427 69 126053375
Over 5 years 727408890 83 601561462 674551153 90 606600750
16476048946 1274320722 12026314396 999690950
Changes in the provision for bad debts of accounts receivable are as follows:
Adjustments
December 31 December 31
for changes in January 1 2020 Provision in 2020 Reversal in 2020
2019 2020
accounting policies
2020 1590733335 90547396 1681280731 400585712 (278157211) 1803709232
2019 1496719907 74767027 1571486934 188332979 (169086578) 1590733335
2 Other receivables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item December 31 2020 December 31 2019
Interest receivable
Dividends receivable
Other receivables 5505896413 7884801508
Total 5505896413 7884801508
Other description:
□Applicable √Not applicable
Interest receivable
(1) Classification of interest receivable
□Applicable √Not applicable
(2) Significant overdue interest
□Applicable √Not applicable191
(3) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
□Applicable √Not applicable
(5) Significant dividends receivable aging over 1 year
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Other receivables
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Aging December 31 2020
Within 1 year
Including: subitem within 1 year
Sub-total of items within 1 year 5445670956
1-2 years 10638902
2-3 years 45823753
Over 3 years
3-4 years 3769928
4-5 years 999828
Over 5 years 9318653
Total 5516222020
(2) Classification by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Nature of funds December 31 2020 December 31 2019
Current accounts between subsidiaries 4966655270 7080666063
Taxes on outstanding payment receivable 369871269 212681400
Bid and performance bonds 58732928 230696849
Lease payment receivable 33434668 33434668
Money on call of on-site product service 30242063 30215954
Staff loan receivable 19913638 23009961
Customs deposits 33365315 38241878
Export tax refund 214352290
Others 4006869 21502445
Total 5516222020 7884801508
(3) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Stage I Stage II Stage III
Provision for bad debt Estimated credit Expected credit loss for the Expected credit loss for Total
losses over the next entire duration (no credit the entire duration (credit
12 months impairment) impairment has occurred)
Balance as at January 1 2020 4425519 5900088 10325607
Balance as at January 1 2020 in
current period1922020
Stage I Stage II Stage III
Provision for bad debt Estimated credit Expected credit loss for the Expected credit loss for Total
losses over the next entire duration (no credit the entire duration (credit
12 months impairment) impairment has occurred)
--Transferred to Stage II
--Transferred to Stage III
--Reversal to Stage II
--Reversal to Stage I
Provision in the current period
Reversal in the current period
Write-off in the current period
Charge-off in the current period
Other changes
Balance as at December 31 2020 4425519 5900088 10325607
Description of significant changes in book balance of other receivables with changes in loss provision in the current
period:
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of
financial instruments has increased significantly:
□Applicable √Not applicable
(4) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Changes in current period
December 31 December 31
Category
2019 Recovery or Write-off or Provision Other changes 2020
reversal charge-off
10325607 10325607
Total 10325607 10325607
Those with significant reversal or recovery amount of provision for bad debts:
□Applicable √Not applicable
(5) Other receivables actually written off in the current period
□Applicable √Not applicable
(6) Top 5 other receivables in terms of ending balance presented by debtor
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Proportion in the Balance of provision
Name Nature December 31 2020 Aging total balance of other for bad debts as at
receivables (%) December 31 2020
Other receivables 1 Current accounts of the subsidiaries 2986812658 Within 1 year 54
Other receivables 2 Current accounts of the subsidiaries 772089126 Within 1 year 14
Other receivables 3 Current accounts of the subsidiaries 514133383 Within 1 year 9
Other receivables 4 Current accounts of the subsidiaries 334014913 Within 1 year 6
Other receivables 5 Current accounts of the subsidiaries 105053738 Within 1 year 2
Total / 4712103818 / 85
(7) Receivables involving government subsidies
□Applicable √Not applicable
(8) Other receivables derecognized due to transfer of financial assets
□Applicable √Not applicable193
(9) Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
3 Long-term equity investments
√Applicable □Not applicable
Unit: Yuan Currency: CNY
December 31 2020 December 31 2019
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in
subsidiaries 5703647701 5703647701 5935939243 5935939243
Investment in joint
ventures and associates 3021960352 3021960352 2812546486 2812546486
Total 8725608053 8725608053 8748485729 8748485729
(1) Investment in subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase Decrease Provision for Balance of provision
December 31 December 31
Invested entity in current in current impairment in for impairment as at
2019 2020
period period current period December 31 2020
Shanghai Zhenhua Heavy Industries Port Machinery General
2201086744 2201086744
Equipment Co. Ltd.Nanjing Ninggao New Channel Construction Co. Ltd 100000000 100000000
Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. 1154936900 1154936900
ZPMC Transmission Machinery (Nantong) Co. Ltd. 300000000 206112853 506112853
CCCC Zhenjiang Investment Construction Management
707000000 330561396 376438604
Development Co. Ltd.CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd 242542999 242542999
ZPMC Qidong Marine Engineering Co. Ltd. 203000000 203000000
CCCC Liyang Urban Investment and Construction Co. Ltd. 243000000 120000000 363000000
Shanghai Zhenhua Shipping Co. Ltd. 140260673 140260673
Shanghai Zhenhua Ocean Engineering Service Co. Ltd 100000000 100000000
ZPMC Electric Co. Ltd. 50000000 50000000
CCCC Investment & Development Qidong Co. Ltd. 192500000 192500000
ZPMC North America Inc. 18564520 18564520
ZPMC Netherlands Co?peratie U.A. 29366084 29366084
Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. 9964200 9964200
ZPMC Machinery Equipment Services Co. Ltd. 7000000 7000000
ZPMC Lanka Company (Private) Limited 6183978 6183978
ZPMC Middle East Fze 5271120 5271120
ZPMC Zhangjiagang Port Machinery Co. Ltd. 4518000 4518000
ZPMC Limited Liability Company 10172070 10172070
ZPMC Southeast Asia Holding Pte. Ltd. 12513114 12513114
ZPMC Engineering Africa (Pty) Ltd. 3084000 3084000
ZPMC Engineering (India) Private Limited 2953200 2953200
ZPMC Brazil Servi?o PortuáriosLTDA 2936771 2936771
ZPMC Korea Co. Ltd. 6398059 6398059
ZPMC UK LD 2797921 2797921
ZPMC Australia Company (Pty) Limited 2708500 2708500
CCCC Rudong Construction Development Co. Ltd. 36664600 36664600
CCCC Yongjia Construction Development Co. Ltd. 128000000 128000000
CCCC Zhenhua Lvjian Technology (Ningbo) Co. Ltd. 4000000 4000000
ZPMC Latin America Holding Corporation 3307850 3307850
ZPMC GmbH Hamburg 207940 207940
ZPMC Fuzhou Offshore Construction Co. Ltd. 5000000 5000000
CCCC (Dongming) Investment and Construction Co. Ltd. 14700000 14700000
Total 5935939243 340812853 573104395 57036477011942020
(2) Investment in joint ventures and associates
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Increase/decrease in the current period Balance of
Profit or loss Adjustment provision for December 31
Invested entity Changes Cash dividends or Provision
December
2019 Further Reduced on investments of other
impairment as
in other profit declared to for Others 31 2020
investment investment under the equity comprehensive at December
equity be distributed impairment
method income 31 2020
I. Joint ventures
Jiangsu Longyuan Zhenhua Marine
260880653 15179788 276060441
Engineering Co. Ltd
ZPMC Mediterranean Liman
3735189 -3165847 569342
Makinalari Ticaret Anonim Sirketi
Sub-total 264615842 12013941 276629783
II. Associates
CCCC Marine Engineering &
16730804 185678 16916482
Technology Research Center Co. Ltd.ZPMC Changzhou Coatings Co. Ltd. 18315964 2241634 3984471 16573127
CCCC Estate Yixing Co. Ltd. 183660541 5982621 2700000 186943162
CCCC Financial Leasing Co. Ltd 1785702878 118432798 -1271676 19713242 1883150758
CCCC Yancheng Construction
289766242 128750000 418516242
Development Co. Ltd.China Communications Construction
60719949 -1690256 -3776695 55252998
USA Inc.CCCC South American Regional
186678840 -2462090 -23615519 160601231
Company SARL
Shanghai Ocean Engineering
Equipment Manufacturing Innovation 6355426 -485085 5870341
Center Co. Ltd.CCCC Xiongan Urban Construction
1500000 6228 1506228
Development Co. Ltd.Sub-total 2547930644 130250000 122211528 -28663890 26397713 2745330569
Total 2812546486 130250000 134225469 -28663890 26397713 3021960352
Other description:
Not applicable
4 Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Primary businesses 19422614728 17180562029 22756923775 19937920290
Other business 2369957349 2199696814 2283380655 2134841176
Total 21792572077 19380258843 25040304430 22072761466
2020 2019
Revenue from Costs of primary Revenue from Costs of primary
primary business business primary business business
Port machinery 12828666254 10833429447 15145230759 12686901266
Heavy equipment 2083801661 2044333654 3127014201 2999144824
Steel structure and related income 3260709435 3164491825 2695894313 2622346875
“Building-transfer” project and engineering
construction 1249437378 1138307103 1788784502 1629527325
19422614728 17180562029 22756923775 19937920290195
Other business revenue and cost are listed as follows:
2020 2019
Revenue from other Costs of other Revenue from Costs of other
business businesses other business businesses
Sales of materials 1860879295 1857809286 1873183009 1875749099
Equipment lease and others 509078054 341887528 410197646 259092077
2369957349 2199696814 2283380655 2134841176
(2) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Classification of Contract XXX-Division Total
Type of goods
Port machinery 12828666254
Steel structure and related income 3260709435
Sales of materials and others 2305490116
Engineering construction project 1249437378
Heavy equipment 2083801661
By region of operation
Chinese Mainland 13378873641
Europe 2414485764
Asia (excluding Chinese Mainland) 2810063459
North America 1087667642
Chinese Mainland (export sales) 1061063332
South America 390569869
Africa 372464436
Oceania 212916701
Market or customer type
Contract type
Revenue recognized at a certain point of time
Port machinery 12828666254
Sales of materials and others 2305490116
Heavy equipment 2083801661
Steel structure and related income 1695443076
Revenue recognized in a certain period of time
Engineering construction project 1249437378
Steel structure and related income 1565266359
By time of goods transfer
By contract term
By sales channel
Total 21728104844
Description of income from contracts:
□Applicable √Not applicable
(3) Performance obligations
□Applicable √Not applicable
(4) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
None1962020
5 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Amount incurred in Amount incurred in the
Item
the current period previous period
Income from long-term equity investments calculated under cost method 66771535 788958
Income from long-term equity investments calculated under equity method 134225469 106972779
Investment income from disposal of long-term equity investment 83283620
Investment income from held-for-trading financial assets during the holding period 449951
Dividend income from other equity instrument investment during holding 6169971
Interest income from debt investment during holding
Interest income from other debt investment during holding
Investment income from disposal of held-for-trading financial assets 195487757
Investment income from disposal of other equity instrument investment
Investment income from disposal of debt investment
Investment income from disposal of other debt investment
Total 486388303 107761737
Other description:
None
6 Others
□Applicable √Not applicable
XVIII Supplementary information
1 Items of non-recurring profit or loss in current period
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item Amount Remarks
Profit or loss from disposal of non-current assets 36620758
Tax refunds exemptions and reductions with ultra vires approval or without official approval documents
Government grants included in the current profit or loss (except for the one closely related to the operations of
the Company and gained constantly at a fixed amount or quantity according to certain standard) 97849026
Capital occupation fees charged to the non-financial enterprises and included in current profit or loss
Profit generated when the Company’s investment cost in acquiring the subsidiary affiliated company and joint
venture is less than the fair value of the recognizable net assets of the invested unit at the time of acquiring
Profit or loss from non-monetary assets exchange
Profit or loss from the assets entrusted to others for investment or management
Provisions for impairment of assets accrued due to force majeure such as natural disaster
Profit or loss from debt reorganization
Cost for enterprise reorganization such as staffing expenses and integration fees
Profit or loss in excess of the fair value generated in transaction with unfair price
Current net profit or loss of the subsidiary generated from the business combination under common control from
the beginning of the period to the combination date
Profit or loss from the contingencies unrelated to the normal business of the Company
Profit or loss on changes in fair values of held-for-trading financial assets derivative financial assets held-
for-trading financial liabilitiesand derivative financial liabilities and investment income obtained from disposal
of held-for-trading financial assets derivative financial assets held-for-trading financial liabilities derivative 356116979
financial liabilities and other credit investment except for effective hedging operations associated with the
company's normal operations
Reversal of provision for impairment of receivables and contract assets subject to separate impairment test 78007100
Profit or loss from external entrusted loans197
Item Amount Remarks
Profit or loss on changes in fair value of investment property by follow-up measurement in fair value mode
Impact on current profit or loss due to one-off adjustment to current profit or loss according to the requirements
of tax and accounting laws and regulations
Custody fees of entrusted operation
Other non-operating revenue and expenses except for the above-mentioned items 4718614
Other profit or loss items that conform to the definition of non- recurring profit or loss
Affected amount of income tax -77383660
Affected amount of minority equity -15226311
Total 480702506
For the non-recurring profit or loss items defined by the Company according to the "Explanatory Announcement on
Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss" and the recurring
profit or loss items defined by the non-recurring profit or loss items listed in "Explanatory Announcement on InformationDisclosure of Companies Offering Securities to the Public No. 1 – Non-recurring Profit or Loss” reasons shall be explained.□Applicable √Not applicable
2 Return on net assets and earnings per share
√Applicable □Not applicable
Earnings per share
Weighted average rate of
Profit in the reporting period
return on net assets (%) Basic earnings Diluted earnings
per share per share
Net profit attributable to ordinary shareholders of the Company 3.04 0.08 0.08
Net profit attributable to ordinary shareholders of the Company
after deducting non-recurring profits and losses -0.43 -0.01 -0.01
3 Differences in accounting data under domestic and overseas accounting standards
□Applicable √Not applicable
4 Others
□Applicable √Not applicable1982020
Section XII List of Reference Documents
List of Reference Financial statements affixed with the signature and seal of legal representative person in charge of accounting
Documents work and person in charge of accounting agency
List of Reference Original auditors' report stamped by the accounting firm and signed and stamped with the certified public
Documents accountants.List of Reference Original copies of the documents and announcement of the Company published on the newspaper designated
Documents by the CSRC in the reporting period.Chairman: Liu Chengyun
Date of reporting approved by the Board of Directors: March 30 2021
Revision information
□Applicable √Not applicable199