Dajin Heavy Industry Co., Ltd.
Annual Report 2023(Summary)
April 2024
Annual Report 2023Section I Important Reminders, Contents and DefinitionsThe Board of Directors, the Board of Supervisors, directors, supervisors and seniorexecutives of the Company guarantee that the contents of this annual report are true,accurate and complete, free from false records, misleading statements or major omissions,and bear individual and joint legal liabilities.Jin Xin, the person in charge of the Company, Liu Aihua, the person in charge ofaccounting and Bai Xinhong, the principal of accounting firm (chief accountant) declarethat the financial information in the financial report of the annual report is true, accurateand complete.
All directors have attended the Board of Directors meeting at which this report wasdeliberated.
Forward-looking statements such as future business plans and business objectives ofthe Company in this report do not represent the Company's profit forecasts, nor do theyconstitute the Company's substantive commitment to investors, so investors are advised topay attention to investment risks.
The profit distribution plan approved by the Board of Directors of the Company is asfollows: on the basis of 637,749,349 shares, a cash dividend of CNY1.82 (tax included) willbe paid to all shareholders for every 10 shares; 0 bonus shares (tax included) will be given,and the reserved funds will not be converted into additional capital.
Contents
Section I Important Reminders, Contents and Definitions ...... 2
Section II Company Profile and Main Financial Indicators ...... 6
Section III Discussion and Analysis of the Management ...... 8
Section IV Corporate Governance ...... 17
Section V Important Matters ...... 18
Section VI Information on Share Changes and Shareholders ...... 19
Section VII Financial Report ...... 22
Contents of Reference Documents
I. Financial statements signed and sealed by the legal representative, the accounting supervisor and the principalof accounting firm (person in charge of accounting).
II. Original audit reports sealed by the accounting firm and signed and sealed by registered accountants.
III. Originals of all the Company's documents and announcements and that have been publicly disclosed duringthe reporting period.
IV. Other relevant data.
Definitions
| Item | refers to | Definition description |
| The Company, Company, Dajin Heavy Industry | refers to | Dajin Heavy Industry Co., Ltd. |
| Reporting period | refers to | January 1, 2023 to December 31, 2023 |
| CSRC | refers to | China Securities Regulatory Commission |
| SZSE | refers to | Shenzhen Stock Exchange |
| Controlling shareholder, Fuxin Jinyin | refers to | Fuxin Jinyin Energy Consultation Co., Ltd. |
| Actual controller | refers to | Jin Xin |
| Penglai Dajin, Penglai Base | refers to | Penglai Dajin Offshore Heavy Industry Co., Ltd. |
| Zhangwu Xiliujiazi | refers to | Zhangwu Xiliujiazi Power New Energy Co., Ltd. |
| Panjin Dajin | refers to | Panjin Dajin Offshore Engineering Co., Ltd |
| Zhangjiakou Dajin | refers to | Zhangjiakou Dajin Wind Power Equipment Co., Ltd. |
| Articles of Association | refers to | Articles of Association of Dajin Heavy Industry Co., Ltd. |
| CNY | refers to | Chinese Yuan |
| Rules Governing the Listing of Stocks | refers to | Rules Governing the Listing of Stocks on Shenzhen Stock Exchange |
| Standardized Operation | refers to | Self-regulatory Guidelines No. 1 for Companies Listed on Shenzhen Stock Exchange - Standardized Operation of Companies Listed on the Main Board |
Any difference of mantissa between the total value and the sum of items in this report is due to rounding.
Section II Company Profile and Main Financial IndicatorsI. Company Information
| Stock abbreviation | Dajin Heavy Industry | Stock code | 002487 |
| Stock abbreviation before change (if any) | No | ||
| Stock Exchange where the stocks are listed | Shenzhen Stock Exchange | ||
| Chinese name of the Company | Dajin Heavy Industry Co., Ltd. | ||
| Chinese abbreviation of the Company | Dajin Heavy Industry | ||
| English name of the Company (if any) | Dajin Heavy Industry Co., Ltd. | ||
| English abbreviation of the Company (if any) | DHI | ||
| Legal representative of the Company | Jin Xin | ||
| Registered address | No. 155, Xinqiu Street, Xinqiu District, Fuxin City | ||
| Postal code of registered address | 123005 | ||
| Change history of the Company's registered address | No | ||
| Office address | Room 1102, East Tower, China Overseas Plaza, Building 7, Courtyard 8, West Binhe Road, Yongdingmen, Dongcheng District, Beijing | ||
| Postal code of office address | 100077 | ||
| Company website | https://www.dajin.cn/ | ||
| Tel | 010-57837708 | ||
| stock@dajin.cn | |||
II. Main Accounting Data and Financial IndicatorsWhether the Company is required to retroactively adjust or restate prior years' accounting data
□Yes ?No
| 2023 | 2022 | Increase or decrease from the previous year | 2021 | |
| Operating income (CNY) | 4,325,081,969.61 | 5,106,113,624.27 | -15.30% | 4,431,981,035.44 |
| Net profit attributable to shareholders of the listed company (CNY) | 425,157,196.53 | 450,276,514.14 | -5.58% | 577,402,207.90 |
| Net profits attributable to shareholders of the listed company, net of non-recurring gains or losses (CNY) | 367,840,006.15 | 417,177,669.27 | -11.83% | 562,168,587.48 |
| Net cash flow from operating activities (CNY) | 808,698,823.80 | 112,200,514.84 | 620.76% | 21,223,949.62 |
| Basic EPS (CNY/share) | 0.67 | 0.80 | -16.25% | 1.04 |
| Diluted EPS (CNY/share) | 0.67 | 0.80 | -16.25% | 1.04 |
| ROEWA | 6.32% | 12.94% | Decreased by 6.62% | 21.35% |
| End of 2023 | End of 2022 | Increase or decrease from the end of the previous year | End of 2021 | |
| Total assets (CNY) | 10,224,813,274.51 | 11,259,103,311.78 | -9.19% | 6,650,087,927.21 |
| Net assets attributable to shareholders of the listed company (CNY) | 6,914,166,614.83 | 6,507,025,370.64 | 6.26% | 2,998,969,585.64 |
Section III Discussion and Analysis of the ManagementI. Industry Situation of the Company during the Reporting Period
1. The global wind power continued to grow, offering broad growth prospect. In 2023, the globalwind power market surpassed the first TW milestone, and by 2030, the annual global new installationcapacity target is estimated to increase to 320GW, accumulating a total installed capacity of over 3TW.According to the Global Wind Energy Council (GWEC), the latest Global Wind Report 2024 released thismonth indicates a strong growth trend in the global wind power market in 2023, with 54 countries achievingnew wind power installations, adding 116.6GW, a record high, representing a 50% growth year-on-year. By theend of 2023, the cumulative global installed capacity of wind power reached 1021GW, surpassing the first TW(1000GW) milestone, a 13% increase year-on-year.
Image source: GWEC Global Wind Energy Report 2024
According to the GWEC Report, to achieve the targets set by COP28, "tripling the global installed capacityof renewable energy power generation by 2030" and "limiting the global warming within 1.5°C as the pre-industrial level", the wind power sector needs to increase the annual new installed capacity from the current117GW to at least 320GW by 2030. By 2030, the cumulative global installed capacity of wind power isexpected to reach 3.5TW (3500GW). To achieve this goal, the GWEC Report emphasizes and calls forstrengthened cooperation in key areas such as investment, supply chain, infrastructure, and public consensus tosustain the growth of wind power.
2. GWEC raised forecast for global installation growth from 2024-2028, projecting a near 10%compound annual growth rate (CAGR) in the next five years.
Image source: GWEC Global Wind Energy Report 2024
Although the global installed capacity level in 2023 is the highest on record, to adapt to the global policyenvironment and the prospects of emerging markets, GWEC Report has revised the growth forecast for 2024-2028, projecting a near 10% CAGR in the next five years. Based on this forecast, the global new installedcapacity in 2024 will reach 130GW, with new installed capacity of 791GW over the next five years, averaging158GW annually.From 2024 to 2028, the global offshore wind capacity is expected to increase by 138GW, with an annualinstalled capacity projected at 27.6GW. By 2028, the annual new installed capacity of offshore wind powermarket is expected to reach 37.1GW, tripling the 2023 figure, and the share of offshore wind power in newglobal installed capacity will increase from the current 9% to 20%.
3. The CAGR forecast for the global offshore wind power market from 2024 to 2028 will be raised to28%, up from 14.8% over the past five years. China and Europe will continue to dominate growth in theshort term, while the United States and the Asia-Pacific emerging markets will gain substantial marketshares starting from 2026.
Image source: GWEC Global Wind Energy Report 2024
In 2023, the global new installed capacity of offshore wind power reached 10.8GW, a 24% increase year-on-year, making it the second highest year for new installed capacity of offshore wind power. The Chinesemarket added installed capacity of 6.3GW, and the European market added 3.8GW. By the end of 2023, theglobal cumulative installed capacity of offshore wind power reached 75.2GW, with the Chinese market at
38GW and the European market at 34.3GW (43% in the UK, 24% in Germany). China and Europe willcontinue to dominate growth in the short term, expected to exceed 85% of the global market share in 2024-2025.
Emerging markets such as the United States and Asia-Pacific (excluding China) will gain significantmarket shares from 2026, and by 2028, the annual new installed capacity in regions outside China and Europemay account for more than 20% of the total global installed capacity.
4. By the year 2030, the annual installed capacity of offshore wind power in Europe is projected toreach 31.4 GW, surpassing that of onshore wind power and providing impetus for the growth of theglobal offshore wind power market.
In 2023, the total new installed capacity of wind power in Europe reached 18.3 GW, with that of onshorewind power reaching 14.5 GW and offshore wind power reaching 3.8 GW. The EU27 member countriesaccounted for 88% of the new installed wind power capacity, with Germany being the largest wind powerinstallation country in Europe, offshore wind power accounting for 21% of the total, and the Netherlands, theUK, France, Denmark, and Norway being the main new offshore wind power installation countries, while non-EU countries like Turkey and Serbia also have considerable new wind power installations.
Wind power installations in Europe (2014-2023)Image source: Wind energy in Europe: 2023 Statistics and the outlook for 2024-2030
In Europe, more than 42GW of installed offshore wind power capacity is expected to be built from 2024 to2028, with 44% of the share installed in the UK, 15% in Germany, 11% in Poland, 8% in the Netherlands, 6% inFrance, and 5% in Denmark.
Wind power installation forecast in Europe (2024-2030)Image source: Wind energy in Europe: 2023 Statistics and the outlook for 2024-2030
After the break-out of Russia-Ukraine conflict, Europe is accelerating renewable energy development toachieve energy security. According to the report, the new onshore wind power installations in Europe areexpected to remain relatively stable, while the new installed capacity of offshore wind power shows asignificant increase starting from 2026, especially in 2029 and 2030, when a sharp increase is expected. By2030, the annual new installed offshore capacity is projected to reach 31.4GW, surpassing onshore wind power.Starting from 2023, Europe has already begun to turn its ambitious goals into actions. The UK governmentannounced in March 2024 that it would provide ?800 million to support offshore wind power in the sixth round ofContracts for Difference allocations (CFD AR6), which is expected to procure around 4-6GW of offshore wind power.According to the GWEC Report, 2024 will be a record year for offshore wind power auctions globally, with morethan 60GW of offshore wind power capacity expected to go through the auction and leasing process.
5. Over 80% of global (excluding China) offshore wind power foundations in the next five years willbe monopile products; and the global (excluding China) offshore wind power foundations capacity gap isgradually widening from now to 2030.
According to public information, from 2024-2028, monopiles will dominate the offshore wind powerfoundations market in Europe and other overseas markets, accounting for over 80% of the market share. Although thefuture wind power foundations is expected to develop to deep sea, with an annual increasing market share for jacketsand floating foundations, monopiles will remain the mainstream product for offshore wind power foundations overthe next five years.
According to the GWEC 2023 Report, in the 2023-2030 offshore wind energy demand and supply analysis, acapacity shortfall is expected in Europe, Asia-Pacific (excluding China), and North America in the coming years,particularly in Europe after 2027. Currently, the major production capacity of offshore wind power products in majordeveloped economies around the world is concentrated in Europe and the Company, and the capacity fulfillment rateof global offshore wind power foundations (excluding China) is less than 70%.
Europe is projected to add 100GW of new installations from 2024-2030, with a noticeable increase in demandfrom 2026. Even if major European offshore foundation supplies complete expansion before 2026, the overallcapacity fulfillment rate will only maintain at less than 60%, a decline rather than an increase; the expansion rate stillcannot meet the pace of market demand growth.II. The Company's Main Business during the Reporting Period
The Company primarily engages in the production and sales of wind power equipment products and invests in thedevelopment, construction, and operation of new energy projects. In the wind power equipment manufacturing sector, theCompany mainly produces and sells towers, monopiles, jackets, floating foundations, transition pieces, and other wind powerproducts.
The Company began constructing the Penglai Offshore Base ten years ago and has been actively developping the "secondgrowth curve" in addition to the traditional onshore wind power products, namely the overseas offshore wind equipment. In recentyears, this strategic focus has yielded substantial results, with a continuous increase in European orders. This year, the Companyentered a new phase of its "Offshore & Overseas Strategy". In response to the high technical standards, high quality requirements,high value-added characteristics of the global offshore wind power market in developed countries, the Company is continuouslyiterating its market and product offerings, striving to achieve the leading market share in the major developed economies' offshorewind power markets within the next 3-5 years. Simultaneously, the Company is actively planning its "third growth curve" bycollaborating with leading international floating foundation solution providers and developing the next generation of floatingfoundation products. Leveraging the new Panjin Base, the Company is constructing its own ship-building base, organizing its self-owned professional transport fleet, and establishing a global logistics system to become a one-stop product solution provider thatintegrates production and transportation.III. Analysis on Core Competitiveness
(1) Strategic first-mover advantage
For over twenty years, the Company has been focusing on the wind power equipment manufacturing industry, pursuingsuperior markets and higher quality for long-term development. By conducting continuous, prudent, and thorough research ondifferent markets and industrial chain links, the Company has iterated its products and markets ahead of key industry turningpoints, making strategic decisions that have allowed it to pioneer new markets and products. From the Chinese market to
international markets, and from onshore to offshore wind power products, the Company has maintained strong strategic resolveand execution capabilities.Since 2019, the Company has successfully entered the European offshore wind power market, making significant progress inmarketing services optimization, technological process upgrades, quality control improvements, and transportation scheme designthrough close collaboration with international customers. Since last year, the Company has won a number of overseas projectorders, and is currently the only supplier in the Asia-Pacific region to realize the delivery of offshore products to the Europeanmarket. Building on the solid foundation of its competitive advantages in the European market, the Company is simultaneouslyadvancing its strategic layout in deep-sea floating foundations and global logistics systems. It has established strategic partnershipswith leading global research institutions and logistics scheme design organizations to create new growth curves.In terms of industrial chain layout, while deploying major domestic offshore bases in Penglai, Tangshan, and Panjin, theCompany is actively planning overseas bases in Europe, North America, and Southeast Asia, with a planned global productioncapacity of over 3 million tons. Based on Europe, the Company is constructing a global strategic marketing system, setting uppermanent foreign institutions in Europe, North America, Japan, and Korea, and establishing a marketing service network thatcovers the major offshore wind development regions worldwide.
(2) Equipment and facilities advantage
As wind turbines become larger and the development of deep-sea areas continues, combined with the high delivery standardsrequired by overseas projects, higher requirements are placed on suppliers regarding site scale, port conditions, and equipmentcapabilities.
The manufacturing of offshore products requires sufficient production and storage areas close to quays. The company'sPenglai Offshore Base has an area of 570,000 square meters specialized in manufacturing offshore towers, monopiles, and jackets,with workshop areas exceeding 200,000 square meters. The Panjin and Tangshan bases under construction cover a larger scale andposess more superior quay infrastructures. Excellent seaport conditions are crucial for transporting wind power equipment globallyand supporting the future development of offshore wind power. Penglai Dajin Port, with its deep water and open portqualifications, forms a strong barrier for exporting offshore wind power products. As one of the world's largest offshore windpower base and marshalling port, Penglai Offshore Base has three operational open-access berths, including two 100,000-tonberths and one 35,000-ton wind power installation-specific recessed berth, with natural water depths ranging from 10m to 16m,making it a premium deep-water port in China.
Advanced equipment with excellent processing accuracy and operational stability provides the foundation for delivering high-quality products to customers. After multiple phases of technical upgrades, the Company's Penglai Offshore Base has achieved aleading position in technological processes and equipment upgrades before product iterations. The Base has invested heavily in afull set of advanced equipment, including a 1000-ton gantry crane, imported plate rolling machine, triple-wire welding machine,and automatic milling machine, effectively meeting the higher demands for product quality, production and shipping efficiencyrequired by European offshore wind power projects. Additionally, based on the future ten-year development trends of offshorewind power, the Company has initiated the deployment of more advanced production equipment and facilities in the Tangshan andPanjin Bases to meet higher delivery standards.
(3) Continuous innovation of technical processes in line with international standards
The technical barriers of offshore wind power equipment are gradually increasing, and the ability to tackle process qualitychallenges combined with technological innovation capacity has become the Company's greatest reliance for internationaldevelopment. As one of the earliest Chinese companies to provide offshore wind power equipment to international customers, theCompany has accumulated quality control capabilities that meet international standards to satisfy the high-quality standards andstringent certification systems of international customers.
The Company, as one of the earliest enterprises to provide offshore wind power equipment for overseas, has taken the lead inbreaking through numerous process and quality difficulties, realized several breakthroughs from 0 to 1 under the ultra-difficultprocess level and nearly harsh standard requirements, accumulated unique technical innovation capability, and formed a batchdelivery system for executing European offshore projects.
(4) Advantage of high-quality overseas customer resources
Since entering the European offshore wind power market in 2019, the Company has accumulated a portfolio of mainstreamEuropean customers through efforts in overseas market development, international customer quality audits, and consistent projectdelivery. With robust comprehensive competitive capabilities, the Company has positioned itself among the top tier of the globalwind power equipment manufacturing industry and established a strong brand reputation. Our products have been exported to overthirty countries and regions, including UK, Germany, France, Japan, South Korea, Vietnam, Italy, Chile, Norway, Finland, India,Canada, and Australia. We have won a reputation for quality and market services through our own excellent product quality andperfect service system. While maintaining our competitive strength in the existing European market, the Company is continuouslyexpanding and gaining new overseas customer certifications in Europe, North America, and Southeast Asia, leading the world inoverseas orders in hand.
(5) Advantage of a globalized talent pool
The Company has built a high-quality management team and a skilled industrial workforce with a global perspective throughexternal recruitment and internal training, enhancing our global talent pool. Since 2018, we have developed a local sales team inEurope, now equipped with dozens of experienced sales personnel who closely match the needs of major energy companies andkey customers in Europe. Additionally, the Company is building more comprehensive business and management teams in otheroverseas regions, supporting the effective implementation of our globalization strategy.IV. Main Business Analysis
1. Overview
(1) Accelerated overseas deployment and significant increase in overseas business revenue share; exportoperations now dominated by offshore products.
In 2023, the Company's total export volume grew by over 60% year-on-year, speeding up the process of goingoverseas, with export products contributing nearly 40% to the total revenue, increasing 23% from nearly 17% in 2022.Export operations were dominated by offshore products, with an annual overseas shipment of nearly 100,000 tons, asales volume increase of over 4000%, and a revenue increase of over 4300% compared to the previous year.
During the reporting period, combined revenue from overseas and domestic offshore projects accounted forabout 51% of the wind power segment's revenue, a 17% increase from the previous year, surpassing onshore productsfor the first time.
(2) Successfully realized large-scale deliveries of offshore products to Europe in 2023; multiple overseasorders will be manufactured and delivered in 2024.
As the only supplier in the Asia-Pacific region to deliver offshore wind power foundations to Europe in a decade,2023 marked the inaugural year of large-scale export of offshore projects. Throughout the year, nearly 100,000 tonsof offshore wind power products were shipped to Europe, including the manufacturing and delivery of the world'slargest monopile for offshore wind power to date: with a maximum diameter of 10m, a maximum single weight of2,014 tons, and a maximum thickness of 115 mm.
In 2024, the Company's export volume and project scope in Europe will further increase, delivering varioustypes of offshore products, including monopiles, offshore towers, and transition pieces, to several offshore wind farmprojects in France, Denmark, UK, the Netherlands, and other locations.
(3) Successively won high-quality orders of "exclusive supply", "ultra-heavy unit weight", etc., withoverseas order volume increasing by over 50% year-on-year in 2023; sufficient and expanding potential ordersin tendering process.
In 2023, the company leads the world regarding the total order value of offshore wind power monopiles, with total signedorders increasing by more than 50% compared to 2022. Based on the delivery schedule of orders, it is expected to deliversequentially to countries and regions such as UK, France, Germany, Denmark, and the Netherlands from 2024 to 2026.
The Company signed an exclusive supply agreement with a leading energy company in Germany, committing to deliver atotal of 105 monopiles, covering all the foundation demands of that wind farm. The Company also signed a production reservationagreement with a European energy company, with the maximum unit weight of monopiles reaching 2,700 tons. The signed ordershave higher technical standards and larger supply scale, serving as the most effective approval to the Company's manufacturingcapability and quality control.
Meanwhile, the Company is participating in several offshore projects in Europe, Japan, Korea, and the United States, with atotal demand exceeding 3 million tons, involving monopiles, jackets, floating foundations, and other offshore products. It isexpected to obtain tender results sequentially from 2024 to 2027.
(4) Layout of "Penglai + Tangshan + Panjin" three major offshore bases, covering "global full-rangeoffshore products".
(a) One of the worlds largest monopile manufacturing and export base - Penglai Offshore Base
In 2023, the Penglai Base underwent multiple technological upgrades and effective manufacturing and transportationpractices of offshore export projects. This included system upgrades across technologies, processes, equipment, and logistics,establishing it as a world-class offshore base. It has now become one of the largest global base for manufacturing monopilesmeeting European offshore wind power standards, highly recognized by mainstream wind power developers and OEMs in Europe,with multiple batches of international customers conducting site audits, and granted with various international and domestictechnical certifications.
(b) Dajin Strategic New Base – Caofeidian Offshore Super Factory expected to be constructed and putinto operation by March 2025.
The Tangshan Caofeidian Base will adopt the world's most advanced equipments and facilities, and the globally first createdfully indoor manufacturing model for ultra-large sections, building a world-class super factory capable of mass-producing all typesof ultra-large wind power and offshore oil and gas foundations.
The project covers more than 86 hectares, aligning with the global forefront of offshore wind power products for the nextdecade, focusing on the manufacturing lines for ultra-large deep-sea jackets and floating foundations. In terms of equipment andfacilities, the base features a unique large-volume design by the Company, with the workshop height of 65m, a single span widthof 70m, and a length of 410m. The complete design breaks the industry limits of processing capacity and innovates productmanufacturing techniques. The Factory's largest single gantry crane has a lifting capacity of 3,000 tons, with all core equipmentimported from Europe.
To meet the production and delivery needs of subsequent offshore monopile orders and deep-sea project orders, theCaofeidian Offshore Super Factory will accelerate construction, which is expected to complete construction and put into operationby March 2025.
(c) Establish a global logistics system and shipbuilding base specially for the transportation of offshorewind power equipment – Panjin Offshore Base
To complement the global strategic layout, the Company is building a supporting global logistics system. The specialtransportation vessel for offshore wind power equipment, designed and manufactured by the Company itself, has design breadth of51m, total length of 240m, deadweight of over 50,000 tons, and draft of 8m. This vessel is designed and built based on theexclusive needs and long-term planning of offshore wind power equipment transportation, significantly improving transportationefficiency compared to the large transportation vessels currently used in the market. In the future, it will provide the Companywith more economical and convenient solutions for transportation of overseas offshore products, especially deep-sea products.
The Company will gradually deliver two special transportation vessels for offshore wind power equipment in 2025. In thefuture, it plans to build its own transport fleet composed of 10 to 20 ultra-large transportation vessels of different tonnages.
(5) Reserve deep-sea technology, actively promoting the development and bidding of the next generationof offshore products (floating foundations, jackets).
The Company has collaborated with a global leading floating foundation design company to develop the nextgeneration of floating foundation products, covering the entire process from design, manufacturing, transportation, toassembly. Additionally, the Company was invited to participate in and propel the bidding of multiple Europeanfloating foundation and jacket projects.
(6) Orderly expand new energy power projects, becoming a new growth driver for the Company'sperformance.
During the reporting period, the Fuxin Zhangwu Xiliujiazi 250MW wind power project was connected to the grid, generatingover 400 million kWh of electricity annually, contributing a revenue of CNY132 million. This project is located in a region withrich wind resources, and is expected to positively impact the Company's performance in 2024.
The Tangshan Caofeidian Shilihai 250MW fishery-solar PV project has completed its filing, which is expected to commenceconstruction in mid-2024 and completed within the year. Additionally, the Company has reserved a total of 1GW new energydevelopment projects in Hebei Province.
2. Income and costs
(1) Composition of operating income
Unit: CNY
| 2023 | 2022 | Year-on-year |
| Amount | Proportion to operating income | Amount | Proportion to operating income | increase or decrease | |
| Total operating income | 4,325,081,969.61 | 100% | 5,106,113,624.27 | 100% | -15.30% |
| By industry | |||||
| Metal products | 4,193,467,024.83 | 96.96% | 5,106,113,624.27 | 100.00% | -17.87% |
| New energy power generation | 131,614,944.78 | 3.04% | - | - | - |
| By product | |||||
| Wind power equipment products | 4,146,031,513.82 | 95.86% | 4,992,421,341.99 | 97.77% | -16.95% |
| New energy power generation | 131,614,944.78 | 3.04% | - | - | - |
| Other | 47,435,511.01 | 1.10% | 113,692,282.28 | 2.23% | -58.28% |
| By region | |||||
| Domestic | 2,610,429,784.50 | 60.36% | 4,268,188,304.95 | 83.59% | -38.84% |
| Export | 1,714,652,185.11 | 39.64% | 837,925,319.32 | 16.41% | 104.63% |
| By sales mode | |||||
| Direct selling | 4,325,081,969.61 | 100.00% | 5,106,113,624.27 | 100.00% | -15.30% |
Product regions are divided by the location of the final installation, the same below.
(2) Industry, product, region or sales mode that accounts for more than 10% of the Company's operating income oroperating profit?Applicable □ Not applicable
Unit: CNY
| Operating income | Operating costs | Gross margin | Year-on-year increase or decrease of operating income | Year-on-year increase or decrease of operating costs | Year-on-year increase or decrease of gross margin | |
| By industry | ||||||
| Metal products | 4,193,467,024.83 | 3,297,773,333.62 | 21.36% | -17.87% | -22.45% | 4.64% |
| New energy power generation | 131,614,944.78 | 13,617,633.50 | 89.65% | - | - | - |
| By product | ||||||
| Wind power equipment products | 4,146,031,513.82 | 3,285,357,254.03 | 20.76% | -16.95% | -22.48% | 5.65% |
| New energy power generation | 131,614,944.78 | 13,617,633.50 | 89.65% | - | - | - |
| By region | ||||||
| Domestic | 2,610,429,784.50 | 2,063,097,732.02 | 20.97% | -38.84% | -40.87% | 2.72% |
| Export | 1,714,652,185.11 | 1,248,293,235.10 | 27.20% | 104.63% | 63.61% | 18.25% |
| By sales mode | ||||||
| Direct selling | 4,325,081,969.61 | 3,311,390,967.12 | 23.44% | -15.30% | -22.13% | 6.72% |
(3) Performance of major sales contracts and major purchase contracts signed by the Company up to the reportingperiod
| Subject matter of contract | Counterparty | Total contract amount | Total amount fulfilled | Amount fulfilled during the reporting period | Amount to be fulfilled | Whether to perform normally | Description of non-normal performance of the contract | Amount of sales revenue recognized during the current period | Cumulative amount of sales revenue recognized | Collection of accounts receivable |
| Supply of monopile foundation for an offshore wind farm in Germany | A European energy development company | 626 million euros | 0 | 0 | 626 million euros | Yes | Not applicable | 0 | 0 | Not applicable |
Section IV Corporate GovernanceI. Profit Distribution and Capital Reserve Conversion to Share Capital of the Company
| Number of bonus shares per 10 shares (shares) | 0 |
| Dividend payout per 10 shares (CNY) (tax included) | 1.82 |
| Equity base for distribution proposal (shares) | 637,749,349 |
| Amount of cash dividends (tax included) (CNY) | 116,070,381.52 |
| Amount of cash dividends by other means (such as share repurchase) (CNY) | 0.00 |
| Total amount of cash dividends (including other means) (CNY) | 116,070,381.52 |
| Distributable profit (CNY) | 2,376,861,748.74 |
| Ratio of Amount of cash dividends (tax included) (CNY) in total profit distribution | 100% |
| Current cash dividends | |
| If the Company's development stage is in the growth period and there is a major capital expenditure arrangement, when profit distribution is made, cash dividends should account for at least 20% of the profit distribution | |
| Notes on the Details of Plan for Profit Distribution or Capital Reserve Converted into Share Capita | |
| Based on the total share capital of the Company of 637,749,349 shares as at the date of disclosure of this announcement, a cash dividend of CNY1.82 (tax included) per 10 shares will be paid to all shareholders, and the remaining undistributed profits will be carried forward to future years, with no bonus shares to be distributed and no conversion of capital reserve to share capital. | |
II. Internal Control Audit Report?Applicable □ Not applicable
| Review opinion in the internal control audit report | |
| We believe that, as of December 31, 2023, Dajin Heavy Industry has maintained effective internal controls over financial statements in all significant aspects in accordance with the "Basic Internal Control Norms for Enterprises" and relevant regulations. | |
| Disclosure of internal control audit report | Disclosed |
| Date of full disclosure of internal control audit report | April 27, 2024 |
| Index of full-text disclosure of internal control audit report | Internal control audit report of Dajin Heavy Industry Co., Ltd. |
| Opinion type of internal control audit report | Standard unqualified opinion |
| Whether there are material deficiencies in non-financial reports | No |
Section V Important MattersI. Material Guarantee
Unit: CNY10,000
| Total company guarantee (i.e. the sum of the first three items) | |||
| Total approved guarantee limit during the reporting period (A1+B1+C1) | 1,300,000 | Total actual guarantee issued during the reporting period (A2+B2+C2) | 875,130.09 |
| Total approved guarantee limit at the end of the reporting period (A3+B3+C3) | 875,130.09 | Total actual guarantee balance at the end of the reporting period (A4+B4+C4) | 606,879.81 |
| Total actual guarantee (i.e., A4+B4+C4) as a percentage of the Company's net assets | 87.77% | ||
| Including: | |||
| Balance of guarantees provided for shareholders, actual controllers, and their affiliated parties (D) | 0 | ||
| Balance of debt guarantees provided directly or indirectly for guaranteed objects with an asset-liability ratio exceeding 70% (E) | 60,000 | ||
| Amount of total guarantees exceeding 50% of net assets (F) | 261,171.48 | ||
| Sum of above three guarantees (D+E+F) | 261,171.48 | ||
Section VI Information on Share Changes and Shareholders
I. Securities Issuance and Listing
| Name of stock and its derivatives | Issue date | Issue price (or interest rate) | Issue quantity | Listing date | Number of approved listings | Transaction end date | Disclosure index | Disclosure date |
| Stock type | ||||||||
| Non-public offering of shares | January 3, 2023 | 37.35 | 82,088,349 | January 4, 2023 | 82,088,349 | - | For details, please refer to the "Non-public Issuance Report of A Shares and Listing Announcement of Dajin Heavy Industry Co., Ltd." published by "Securities Times", "China Securities Journal" and CNINFO (http://www.cninfo.com.cn) on December 30, 2022. | December 29, 2022 |
II. Shareholders and Actual Controllers
1. Number of shareholders of the Company and their shareholdings
Unit: Stock
| Total number of common shareholders at the end of the reporting period | 98,671 | Total number of common shareholders at the end of the previous month before the annual report disclosure date | 92,352 | Total number of preferred shareholders with restored voting rights at the end of the reporting period (if any) (see Note 8) | 0 | Total number of preferred shareholders with restored voting rights at the end of the previous month before the annual report disclosure date (if any) (see Note 8) | 0 | |
| Shareholding situation of shareholders holding more than 5% or top 10 shareholders (excluding shares lent through refinancing) | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding ratio | Number of shares held at the end of the reporting period | Changes during the reporting period | Number of shares with restrictions on sale | Number of shares without restrictions on sale | Pledges, tags or freezes | |
| Share status | Quantity | |||||||
| Fuxin Jinyin Energy Consultation Co., Ltd. | Domestic non-state-owned legal person | 38.93% | 248,300,500 | 5,250,000 | 0.00 | 248,300,500 | Not applicable | 0 |
| Hong Kong Securities Clearing Company Limited | Overseas legal person | 1.45% | 9,242,818 | 2,018,053 | 0.00 | 9,242,818 | Not applicable | 0 |
| China Securities Co., Ltd. - CCB New Energy Industry Equity | Other | 1.35% | 8,595,690 | 6,769,090 | 0.00 | 8,595,690 | Not applicable | 0 |
| Securities Investment Fund | ||||||||
| Jin Xin | Domestic natural person | 1.21% | 7,745,625 | 0 | 5,809,219 | 1,936,406 | Not applicable | 0 |
| National Social Security Fund 104 | Other | 0.76% | 4,866,800 | 4,866,800 | 0.00 | 4,866,800 | Not applicable | 0 |
| National Social Security Fund 602 | Other | 0.54% | 3,449,776 | 711,576 | 0.00 | 3,449,776 | Not applicable | 0 |
| Cathay Fund - Agricultural Bank of China - Cathay Blue Chip Value No. 1 Collective Asset Management Plan | Other | 0.49% | 3,100,000 | 3,100,000 | 0.00 | 3,100,000 | Not applicable | 0 |
| CITIC Securities Co., Ltd. - CCB Xingrun One-Year Holding Hybrid Securities Investment Fund | Other | 0.46% | 2,917,600 | 2,917,600 | 0.00 | 2,917,600 | Not applicable | 0 |
| CGN Capital Holdings Co., Ltd. | State-owned legal person | 0.42% | 2,677,376 | 2,677,376 | 0.00 | 2,677,376 | Not applicable | 0 |
| Li Yamei | Domestic natural person | 0.40% | 2,577,500 | 0 | 0.00 | 2,577,500 | Not applicable | 0 |
2. Controlling shareholders of the Company
Nature of controlling shareholder: Natural person holdingType of controlling shareholder: Legal person
| Name of controlling shareholder | Legal representative/principal of the Company | Date of establishment | Organization code | Major business |
| Fuxin Jinyin Energy Consultation Co., Ltd. | Jin Xin | August 11, 2003 | 912109037527653728 | General items: Business management consulting, consulting and planning services, information consulting services (excluding licensed information consulting services), marketing planning (except for business items subject to approval pursuant to the law, the Company shall carry out business activities autonomously with business license pursuant to the law) |
The controlling shareholder of the Company did not change during the reporting period.
3. Actual controller of the Company and its concerted parties
Nature of actual controller: Domestic natural personType of actual controller: Natural person
| Name of actual controller | Relationship with actual controller | Nationality | Whether the right of residence in other countries or regions is obtained |
| Jin Xin | In person | China | No |
| Main occupation and position | Currently serves as the Chairman of the Company and its subsidiaries; concurrently serves as Executive Director and General Manager of Fuxin Jinyin Energy Consultation Co., Ltd.; | ||
| Information on domestic and overseas listed companies that have been controlled in the past 10 years | No | ||
The actual controller of the Company did not change during the reporting period.Block diagram of the property rights and control relationship between the Company and the actual controller
Jin XinFuxin Jinyin Energy Investment Co., Ltd.
Fuxin Jinyin Energy Investment Co., Ltd.Dajin Heavy Industry Co., Ltd.
Section VII Financial Report
I. Audit Report
| Type of audit opinion | Standard unqualified opinion |
| Signing date of audit report | April 25, 2024 |
| Name of audit institution | BDO China Shu Lun Pan Certified Public Accountants LLP |
| Document No. of audit report | XKSBZ [2024] No. ZG11375 |
| Name of certified public accountant | Shi Aihong, Xiong Yu |
II. Financial StatementsThe unit of statements in the notes to financial statements is CNY.
1. Consolidated balance sheet
Prepared by: Dajin Heavy Industry Co., Ltd.
December 31, 2023
Unit: CNY
| Item | December 31, 2023 | January 1, 2023 |
| Current assets: | ||
| Monetary funds | 1,960,572,967.42 | 4,052,470,388.42 |
| Provision for settlement fund | ||
| Funds lent | ||
| Trading securities | 1,003,673,018.90 | |
| Derivative financial assets | ||
| Notes receivable | 40,188,682.53 | |
| Accounts receivable | 1,629,436,576.02 | 1,769,653,223.06 |
| Accounts receivable financing | 289,715,098.79 | 375,298,033.27 |
| Prepayment | 278,551,569.66 | 408,572,826.77 |
| Premium receivable | ||
| Reinsurance accounts receivable | ||
| Reserves for reinsurance contract receivable | ||
| Other receivables | 32,988,574.48 | 355,280,093.41 |
| Including: interest receivable |
| Dividends receivable | ||
| Redemptory monetary capital for sale | ||
| Inventory | 1,545,529,824.24 | 1,736,764,364.60 |
| Contract assets | 307,716,357.72 | 189,251,347.41 |
| Held-for-sale assets | ||
| Non-current assets maturing within one year | ||
| Other current assets | 205,002,094.08 | 102,844,574.67 |
| Total current assets | 7,293,374,763.84 | 8,990,134,851.61 |
| Non-current assets: | ||
| Loans and advances | ||
| Debt investments | 112,174,657.55 | |
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investment | ||
| Other equity instrument investment | ||
| Other non-current financial assets | ||
| Investment real estate | ||
| Fixed assets | 1,564,756,590.02 | 1,041,030,360.60 |
| Construction in progress | 836,938,008.14 | 902,948,109.31 |
| Productive biological assets | ||
| Oil-and-gas assets | ||
| Right-of-use assets | 124,882,564.34 | 53,410,403.15 |
| Intangible assets | 270,047,977.16 | 225,043,597.30 |
| Development expenditures | ||
| Goodwill | ||
| Long-term deferred expenses | ||
| Deferred tax assets | 20,848,996.60 | 8,752,420.73 |
| Other non-current assets | 1,789,716.86 | 37,783,569.08 |
| Total non-current assets | 2,931,438,510.67 | 2,268,968,460.17 |
| Total assets | 10,224,813,274.51 | 11,259,103,311.78 |
| Current liabilities: | ||
| Short-term loans | 9,769,934.37 | 426,079,140.36 |
| Loans from the central bank | ||
| Borrowed funds | ||
| Trading financial liabilities | 21,481,786.02 | |
| Derivative financial liabilities | ||
| Notes payable | 1,053,285,789.19 | 1,728,263,823.30 |
| Accounts payable | 612,478,188.29 | 422,106,303.30 |
| Advances from customers | ||
| Contract liabilities | 588,995,745.72 | 694,388,236.89 |
| Financial assets sold for repurchase | ||
| Deposits from customers and other banks | ||
| Receiving from vicariously traded securities | ||
| Receiving from vicariously sold securities | ||
| Employee compensation payable | 11,024,892.33 | 9,796,898.60 |
| Taxes payable | 14,693,699.96 | 53,674,509.52 |
| Other payables | 94,255,158.01 | 86,158,423.05 |
| Including: interest payable | ||
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance accounts payable | ||
| Held-for-sale liabilities | ||
| Non-current liabilities maturing within one year | 493,189,271.50 | 79,062,272.71 |
| Other current liabilities | 30,966,023.97 | 43,994,609.10 |
| Total current liabilities | 2,930,140,489.36 | 3,543,524,216.83 |
| Non-current liabilities: | ||
| Reserves for insurance contracts | ||
| Long-term loans | 394,000,000.00 | |
| Bonds payable | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Lease liabilities | 88,093,066.19 | 23,717,958.69 |
| Long-term payables | 108,681,305.37 | 602,558,550.53 |
| Long-term employee benefits payable |
| Estimated liabilities | ||
| Deferred income | 179,522,520.99 | 184,162,049.43 |
| Deferred tax liabilities | 4,209,277.77 | 4,115,165.66 |
| Other non-current liabilities | ||
| Total non-current liabilities | 380,506,170.32 | 1,208,553,724.31 |
| Total liabilities | 3,310,646,659.68 | 4,752,077,941.14 |
| Owner's equity: | ||
| Share capital | 637,749,349.00 | 637,749,349.00 |
| Other equity instruments | ||
| Including: preferred stock | ||
| Perpetual bonds | ||
| Capital reserve | 3,806,028,183.90 | 3,806,610,083.90 |
| Less: treasury stock | 843,000.00 | |
| Other comprehensive income | -894,460.53 | -474,386.06 |
| Special reserve | ||
| Surplus reserve | 94,421,793.72 | 90,579,859.48 |
| General risk reserve | ||
| Undistributed profits | 2,376,861,748.74 | 1,973,403,464.32 |
| Total owner's equity attributable to the parent company | 6,914,166,614.83 | 6,507,025,370.64 |
| Minority equity | ||
| Total owner's equity | 6,914,166,614.83 | 6,507,025,370.64 |
| Total liabilities and owner's equity | 10,224,813,274.51 | 11,259,103,311.78 |
Legal Representative: Jin Xin Person in charge of Accounting: Liu Aihua Principal of Accounting Firm: Bai Xinhong
2. Consolidated income statement
Unit: CNY
| Item | 2023 | 2022 |
| I. Total operating income | 4,325,081,969.61 | 5,106,113,624.27 |
| Including: operating income | 4,325,081,969.61 | 5,106,113,624.27 |
| Interest income | ||
| Premium earned | ||
| Handling charges and commissions | ||
| II. Total operating costs | 3,888,096,631.86 | 4,655,069,722.53 |
| Including: operating costs | 3,311,390,967.12 | 4,252,192,335.62 |
| Interest expenses | ||
| Expenditures for handling fee and commissions | ||
| Refunded premiums | ||
| Net compensation expenses | ||
| Net amount withdrawn for insurance contract reserves |
| Expenditures for policy dividends | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 30,656,739.46 | 18,419,984.86 |
| Sales expenses | 70,459,195.99 | 40,202,685.40 |
| Administrative expenses | 155,636,365.43 | 119,003,801.18 |
| R&D expenses | 255,605,750.57 | 215,341,392.76 |
| Financial expenses | 64,347,613.29 | 9,909,522.71 |
| Including: interest expenses | 13,839,058.50 | 24,878,002.86 |
| Interest income | 34,625,865.25 | 12,789,779.72 |
| Add: other income | 30,210,469.55 | 26,029,372.91 |
| Investment income (loss indicated with "-") | 15,418,039.24 | 63,099,520.11 |
| Including: income from investments in associates and joint ventures | ||
| Income from derecognition of financial assets at amortized cost | -6,874,289.14 | |
| Exchange income (loss indicated with "-") | ||
| Net exposure hedging income (loss indicated with "-") | ||
| Income from changes in fair value (loss indicated with "-") | 2,191,232.88 | |
| Credit impairment loss (loss indicated with "-") | -1,061,200.89 | -17,463,171.22 |
| Asset impairment loss (loss indicated with "-") | -6,916,975.14 | -341,687.73 |
| Gains from disposal of assets (loss indicated with "-") | -19,871.20 | 638,349.46 |
| III. Operating profits (loss indicated with "-") | 476,807,032.19 | 523,006,285.27 |
| Add: non-operating income | 8,056,920.21 | 5,831,011.01 |
| Less: non-operating expenses | 138,631.92 | 4,975,624.95 |
| IV. Total profit (total loss indicated with "-") | 484,725,320.48 | 523,861,671.33 |
| Less: income tax expenses | 59,568,123.95 | 73,585,157.19 |
| V. Net profit (net loss indicated with "-") | 425,157,196.53 | 450,276,514.14 |
| (I) Classification by going concern | ||
| 1. Net profits from going concern (net loss indicated with "-") | 425,157,196.53 | 450,276,514.14 |
| 2. Net profits from discontinued operation (net loss indicated with "-") | ||
| (II) Classification by attribution of the ownership | ||
| 1. Net profit attributable to shareholders of the parent company | 425,157,196.53 | 450,276,514.14 |
| 2. Minority profit or loss | ||
| VI. Net amount of other comprehensive income after tax | -420,074.47 | 46,406.34 |
| Net amount of other comprehensive income after tax attributable to the owners of the parent company | -420,074.47 | 46,406.34 |
| (I) Other comprehensive income that cannot be reclassified into profits or losses in subsequent periods | 8,500.00 | |
| 1. Changes from re-measurement of defined benefit plan | ||
| 2. Other comprehensive income that cannot be carried over to profit or loss under equity method |
| 3. Changes in the fair value of other equity instrument investment | 8,500.00 | |
| 4. Changes in the fair value of the company's own credit risk | ||
| 5. Other | ||
| (II) Other comprehensive income that will be reclassified into profit or loss | -420,074.47 | 37,906.34 |
| 1. Other comprehensive income that can be carried over to profit or loss under equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of reclassified financial assets credited to other comprehensive income | ||
| 4. Credit impairment provision of other debt investments | ||
| 5. Hedging reserve of cash flows | ||
| 6. Translation difference of foreign currency financial statements | -420,074.47 | 37,906.34 |
| 7. Other | ||
| Net post-tax other comprehensive income attributable to minority shareholders | ||
| VII. Total comprehensive income | 424,737,122.06 | 450,322,920.48 |
| Total comprehensive income attributable to the owners of the parent company | 424,737,122.06 | 450,322,920.48 |
| Total comprehensive income attributable to minority shareholders | ||
| VIII. Earnings per share (EPS) | ||
| (I) Basic EPS | 0.67 | 0.80 |
| (II) Diluted EPS | 0.67 | 0.80 |
Legal Representative: Jin Xin Person in charge of Accounting: Liu Aihua Principal of Accounting Firm: Bai Xinhong
3. Consolidated cash flow statement
Unit: CNY
| Item | 2023 | 2022 |
| I. Cash flows from operating activities: | ||
| Cash received from sale of goods and rendering of services | 4,188,380,117.80 | 4,211,265,814.88 |
| Net increase in deposits from customers and interbank | ||
| Net increase in loans from the central bank | ||
| Net increase in funds borrowed from other financial institutions | ||
| Cash received for the premium of the original insurance contract | ||
| Net cash received from reinsurance operations | ||
| Net increase in policyholders' savings and investment funds | ||
| Cash by charging interests, handling charges and commissions | ||
| Net increase in borrowed funds | ||
| Net increase in funds for repurchase business | ||
| Net cash received from receiving from vicariously traded securities | ||
| Refund of tax and levies | 144,817,655.80 | 166,378,968.70 |
| Other cash received from operating activities | 564,812,577.22 | 333,921,658.27 |
| Subtotal of cash inflows of operating activities | 4,898,010,350.82 | 4,711,566,441.85 |
| Cash paid for purchasing goods and receiving services | 3,439,988,212.26 | 3,895,005,310.47 |
| Net increase in customer loans and advances | ||
| Net increase in deposits in the central bank and interbank |
| Cash paying the compensation of the original insurance contract | ||
| Net increase in the borrowed funds | ||
| Cash paid for interests, handling charges and commissions | ||
| Cash for paying policy bonus | ||
| Cash paid to and for employees | 211,590,577.58 | 159,442,640.32 |
| Tax payments | 199,330,375.67 | 199,263,403.86 |
| Other cash paid for operating activities | 238,402,361.51 | 345,654,572.36 |
| Subtotal of cash outflows from operating activities | 4,089,311,527.02 | 4,599,365,927.01 |
| Net cash flows from operating activities | 808,698,823.80 | 112,200,514.84 |
| II. Cash flows from investing activities: | ||
| Cash received from investment recovery | 5,411,960,800.00 | 80,010,000.00 |
| Cash received from investment income | 19,892,837.26 | 2,421,792.93 |
| Net cash recovered from disposal of fixed assets, intangible assets and other long-term assets | 62,180.00 | 4,405.00 |
| Net cash received from disposal of subsidiaries and other business entities | 67,724,904.19 | |
| Other cash received relating to investment activities | ||
| Subtotal of cash inflows of investing activities | 5,499,640,721.45 | 82,436,197.93 |
| Cash paid for acquisition and construction of fixed assets, intangible assets and other long-term assets | 413,363,384.36 | 685,996,572.21 |
| Cash paid for investment | 6,501,960,800.00 | 80,000,000.00 |
| Net increase in pledge loans | ||
| Net cash paid for acquiring subsidiaries and other business units | ||
| Other cash paid relating to investment activities | 7,307,083.06 | |
| Subtotal of cash outflows of investing activities | 6,915,324,184.36 | 773,303,655.27 |
| Net cash flow from investment activities | -1,415,683,462.91 | -690,867,457.34 |
| III. Cash flows from financing activities: | ||
| Cash received from investment | 3,060,264,246.80 | |
| Including: cash received by subsidiaries by absorbing minority shareholders' investment | ||
| Cash received from loans | 9,761,853.72 | 1,013,738,051.76 |
| Cash received from other financing activities | ||
| Subtotal of cash inflows from financing activities | 9,761,853.72 | 4,074,002,298.56 |
| Cash paid for debt repayment | 974,982,474.39 | 465,686,540.81 |
| Cash paid for distribution of dividends and profits or payment of interests | 39,534,366.41 | 65,331,207.79 |
| Including: dividends and profits paid by subsidiaries to minority shareholders | ||
| Cash paid relating to other financing activities | 5,818,122.52 | 45,267,874.92 |
| Subtotal cash outflows of financing activities | 1,020,334,963.32 | 576,285,623.52 |
| Net cash flow from financing activities | -1,010,573,109.60 | 3,497,716,675.04 |
| IV. Impact of exchange rate changes on cash and cash equivalents | -56,613,535.33 | 1,994,575.63 |
| V. Net increase in cash and cash equivalents | -1,674,171,284.04 | 2,921,044,308.17 |
| Add: opening balance of cash and cash equivalents | 3,575,799,952.92 | 654,755,644.75 |
| VI. Closing balance of cash and cash equivalents | 1,901,628,668.88 | 3,575,799,952.92 |
Legal Representative: Jin Xin Person in charge of Accounting: Liu Aihua Principal of Accounting Firm: Bai Xinhong