Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co., Ltd.
Annual Report 2020
CONTENTSSection ISection IISection IIISection IVSection VSection VISection VIISection VIIISection IXSection XSection XISection XII
DenitionsCompany Prole and Principal Financial IndexesBusiness ProleDiscussion and Analysis of the PerformanceImportant EventsChanges in Ordinary Shares and Shareholders' SituationPreferred SharesDirectors, Supervisors, Senior Executives and EmployeesCorporate GovernanceRelated Information on Corporate BondsFinancial ReportList of Reference Documents
The Board of Directors, Board of Supervisors, directors, supervisors and senior executivesof the Company hereby guarantee the truthfulness, accuracy and completeness of thecontents carried in this annual report, guarantee no false record, serious misleadingstatement or great omission carried in this annual report and guarantee to assume thelegal responsibilities jointly and separately.All directors of the Company are present at the board meeting.Ernst & Young LLP. (Special General Partnership) issues the standard audit report withoutqualied opinion for the Company.Liu Chengyun, the chairman of the Company, Zhu Xiaohuai, person in charge ofaccounting work, and Sun Guangbo, person in charge of accounting agency (accountantin charge) hereby declare that the financial statements in this Annual Report are true,accurate and complete.Proposal for prot distribution or common reserves capitalizing during the reporting periodreviewed by the board of directorsConsidering the Company’s business plan and the capital demand in 2021, in orderto ensure the Company’s long-term healthy and sustainable development, the profitdistribution proposal for 2020 is as follows: the Company will neither distribute the protsnor transfer the capital public reserves into the paid-in capital.Risk declaration of forward-looking statements
□Applicable √ Not Applicable
Does the Company have non-operating funds occupied by the holding shareholder and itsrelated parties?NoDoes the Company provide the external guarantees in breach of the stipulated decision-making procedure?NoWhether more than half of the directors cannot guarantee the authenticity, accuracy andcompleteness of the annual report disclosed by the Company?NoMajor Risk WarningThe company has described the related potential risks in this annual report. Investors maypay attention to the same. Please refer to discussion and analysis of the performanceand related chapters for the risks the company may be confronted with in the futuredevelopment.Others
□Applicable √ Not Applicable
Important Notice
2020
The terms used in this report shall be dened as follows, unless otherwise specied:
Denitions of high frequency termsCompany, the CompanyRefers toShanghai Zhenhua Heavy Industries Co., Ltd.CCCCRefers toChina Communications Construction Company Ltd.CCCGRefers toChina Communications Construction Group Co., Ltd.CCCG HKRefers toCCCG (HK) Holding LimitedReporting periodRefers toFrom Jan. 1, 2020 to Dec. 31, 2020
I. DenitionsSection IDefinitions
Company Information
Company name in Chinese上海振华重工（集团）股份有限公司Abbreviation of the Company name in Chinese振华重工Company name in EnglishSHANGHAI ZHENHUA HEAVY INDUSTRIES CO.,LTD.Abbreviation of the Company name in EnglishZPMCLegal representative of the CompanyLiu Chengyun
Section IICompany Profile and Principal Financial Indexes
2Contact Information
Secretary of the Board of DirectorsNameSun LiAddressNo. 3261, Dongfang Road, ShanghaiTelephone021-50390727Fax021-31193316E-mailIR@ZPMC.COM3Basic InformationRegistered addressNo.3470, Pudong South Road, ShanghaiPostal code of registered address200125O?ce addressNo. 3261, Dongfang Road, ShanghaiPostal code of o?ce address200125Websitehttp://www.zpmc.comE-mailIR@ZPMC.COM4Information disclosure and placement locationNewspaper designated by the Company for informationdisclosure
Shanghai Securities News, Hong Kong Wen Wei PoWebsite designated by China Securities RegulatoryCommission (CSRC) for publishing the annual report of theCompany
www.sse.com.cnPlacement location of the annual report of the CompanySecurities A?airs O?ce
2020Stock information
Stock InformationStock typeStock exchangeStock abbreviationStock codeStock abbreviation before changeA-shareShanghai Stock Exchange (SSE)Zhenhua Heavy600320ZPMC IndustriesB-shareShanghai Stock Exchange (SSE)Zhenhua B-share900947-
Other relevant informationPublic accountingrm engaged by theCompany (domestic)
NameErnst & Young LLP (Special General Partnership)O?ce address
Room 01-12, Floor 17
th, Ernst & Young Tower Oriental Plaza, No.1East Changan Street, Dongcheng District, BeijingSigned by the AccountantsLiu Wei, Gu Chengli
(I) Main accounting dataMain accounting data and nancial indexes in recent three years
Unit: Yuan Currency: CNYMain accounting data20202019
Year-on-yearchange (%)
2018Operating revenue22,655,141,65224,595,587,883-7.8921,812,389,644Operating revenue after deducting the business incomeunrelated to primary business and the income withoutcommercial substance
22,396,639,375///Net prot attributable to the shareholders of the listedcompany
422,240,299514,930,143-18.00443,005,092Net prot attributable to the shareholders of the listedcompany after deducting the non-recurring prots and losses
-58,462,207311,117,615-118.79121,335,528Net cash ows from operating activities819,389,0201,290,213,109-36.49553,943,979
At the end of
2020
At the end of2019
Year-on-yearchange (%)
At the end of2018Net assets attributable to the shareholders of the listedcompany
14,570,822,14015,543,404,014-6.2615,185,861,952Total assets79,320,644,54074,410,783,3006.6070,598,364,627
(II) Major nancial indexes
Major nancial indexes20202019Year-on-year change (%)2018Basic earnings per share (RMB/share)0.0800.098-18.370.084Diluted earnings per share (RMB/share)0.0800.098-18.370.084Basic earnings per share after deducting non-recurring prots and losses (RMB/share)
-0.0110.059-118.640.023Weighted average ROE (%)3.043.39-0.352.92Weighted average ROE after deducting non-recurringprots and losses (%)
-0.432.06-2.490.80
Notes to the main accounting data and nancial indexes in the past 3 years before the end of the reporting period
□Applicable √ Not Applicable
1 Di?erences in accounting data under domestic and overseas accounting standards
1.Di?erence in net prots and net assets attributable to the shareholders of the listed company in the nancial statement
synchronously disclosed under the international and national accounting standards
□Applicable √ Not Applicable
2.Di?erence in net prots and net assets attributable to the shareholders of the listed company in the nancial statement
synchronously disclosed under the domestic and overseas accounting standards
□Applicable √ Not Applicable
3.Explanation for di?erences between the domestic and overseas accounting standards:
□Applicable √ Not Applicable
1 Main nancial data in 2020 by quarters
Unit: Yuan Currency: CNYQ1(Jan. to Mar.)
Q2(Apr. to Jun.)
Q3(Jul. to Sep.)
Q4(Oct. to Dec.)Operating revenue4,415,427,9284,715,971,9075,341,644,4018,182,097,416Net prot attributable to the shareholders of the listed company-92,971,034109,610,761175,488,612230,111,960Net prot attributable to the shareholders of the listed companyafter deducting the non-recurring prots and losses
100,767,01928,640,017-58,544,317-129,324,926Net cash ows from operating activities-375,004,585419,553,75323,089,584751,750,268Notes to di?erences between the quarterly data and the data in periodically disclosed reportsApplicable √ Not Applicable
1 Non-recurring prot and loss items and amount
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYNon-recurring prot and loss items
Amount in
2020
Note(if applicable)
Amount in2019
Amount in2018Prot or loss from disposal of non-current assets36,620,75849,091,913155,557,716Government subsidies included in current prots and losses exceptfor government subsidies closely related to the Company business, inline with national policies and obtained by quota or quantity at uniedstate standards
97,849,02693,271,980114,412,517Prot or loss on changes in fair values of held-for-trading nancialassets, derivative nancial assets, held-for-trading nancial liabilitiesand derivative nancial liabilities, and investment income obtainedfrom disposal of held-for-trading nancial assets, derivative nancialassets, held-for-trading nancial liabilities, derivative nancialliabilities and other credit investment, except for e?ective hedgingoperations associated with the company's normal operations
356,116,979146,517,39774,200,750Reversal of provision for impairment of receivables subject toseparate impairment test
78,007,100150,327,138Other non-operating revenue and expenses except for the above-mentioned items
4,718,614-18,553,180-67,069,856A?ected amount of minority equity-15,226,311-23,013,076-30,908,588A?ected amount of income tax-77,383,660-43,502,506-74,850,113Total480,702,506203,812,528321,669,564
20201 Items measured at fair value
√ Applicable □ Not Applicable
Unit: Yuan Currency: CNYItem
December 31,
2019
December 31,
2020
Currentchange
Impact oncurrentprotsJiangxi Huawu Brake Co., Ltd.132,211,332228,142,45095,931,11881,991,399Qingdao Port International Co., Ltd.510,671,771415,582,601-95,089,170-58,710,297China Railway Signal & Communication Corporation Limited479,560,537269,294,333-210,266,204-150,959,680Shenwan Hongyuan Group Co., Ltd.1,119,3451,154,32434,97947,226COSCO Shipping Holdings Co., Ltd.585,555,555679,011,66593,456,110423,923,787Derivative nancial assets22,235,2440-22,235,2443,153,419Derivative nancial liabilities-7,312,741-458,8826,853,8595,825,780Equity instrument investment8,438,2788,438,27800Hunan Fengri Power & Electric Co., Ltd.24,348,68922,685,894-1,662,7950CCCC Highway Bridges National Engineering ResearchCentre Co., Ltd.
17,649,13619,319,2761,670,1400CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
9,005,3788,000,908-1,004,4700Shenyang Weichen Crane Equipment Co., Ltd. (Formername: Shanghai Zhenhua Port Machinery (Group) ShenyangElevator Co., Ltd.)
2,865,6644,197,0361,331,372938,696Ningbo Weilong Port Machinery Co., Ltd. (Former name:
ZPMC Ningbo Transmission Machinery Co., Ltd)
7,241,6106,565,227-676,3835,108,263ZPMC Longchang Lifting Equipment Co., Ltd (Former name:
Shanghai Zhenhua Port Machinery (Group) LongchangLifting Equipment Co., Ltd.)
870,791737,410-133,381125,025CCCC Tianhe Mechanical Equipment Manufacturing Co.,Ltd.-330,094,057330,094,0573,627,322Total1,794,460,5891,992,764,577198,303,988315,070,940Others
□Applicable √ Not Applicable
I. Main business, business model of the Company and the industrial prole during the reporting periodThe 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. Whileconstantly consolidating its traditional business advantages, it is also actively expanding smart industries, livelihoodconsumption, integrated development and digital industries.The business scope of the Company covers: design, construction, installation and contracting of large port loading andunloading system and equipment, o?shore heavy equipment, engineering machinery, engineering vessels and large metalstructural parts and their parts and components; ship repair; leasing of equipment; leasing of self-owned houses; leasing ofself-produced crane; sales of the products made by the sales company; international sea transportation by special purposevessels that can be transported with the whole equipment; specialized contracting of steel structure engineering; constructionof electric construction engineering; and construction of electromechanical installation and construction engineering; researchand 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 technologytransfer in the fields of computer software and information, computer network, mechanical technology, environmentalprotection technology, new energy technology, intelligent technology; installation and maintenance of railway and urban railtransportation 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, licensemanagement, special regulations, quality inspection, safety inspection and construction qualication requirements involved,it shall not carry out the business activities before obtaining the corresponding qualications or licenses in accordance withthe relevant national regulations).[Items subject to approval according to law can be carried out only after such approval isgranted by the competent authorities]
In recent years, the traditional ports are gradually upgraded towards automation, digitization and intelligence, and aretransforming to the new operation mode of “smart port” and “green port”. Accordingly, the port machinery and equipment arealso developing towards high e?ciency, automation, digitization, intelligence, “green” model and environmental protection. Byincreasing the investment in scientic and technological research and development, deepening the cooperation with strategiccustomers and cross-industry cooperation, ZPMC has actively expanded new business elds and further strengthened itscompetitive 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 scientic and technological innovation and made overall planningof the science and technology innovation system. The design and R&D center of the Company has been building a scienticand technological innovation system with the ZPMC characteristics from many aspects, actively expanded the cooperationspace of open innovation alliance, focused on the key technical challenges in the development, strengthened the organicconnection of innovation chain and industrial chain with the market demand, and has built an open technology innovationalliance or collaborative innovation platform with many domestic and foreign universities, scientic research institutions andenterprises.
In 2020, the Company applied for 231 patents, including 99 invention patents and 132 utility models, and was granted186 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 undertook63 international, national, industrial, local and group standards, of which 40 have been issued.
Section IIIBusiness Profile
20202 Intelligent manufacturing capability in continuous upgradingIn order to improve the product quality and production e?ciency, with intelligent equipment and intelligent workshopas the breakthrough points, the Company has carried out pilot transformation and upgrading of intelligent manufacturing inseveral production bases. The automation and intelligent manufacturing were rstly implemented in the key manufacturingof standardized parts, such as box girder components related steel structure and mechanical accessories in query-sidecontainer crane which was the main product of the Company. In the way of promotion, the Company took the constructionof intelligent workshop as the starting point to make experiments in building the automated, information-based and e?cientproduction process for quayside bridge box girder components; through the introduction of advanced processing equipmentwith data acquisition function such as built-in PLC, intelligent welding robot, RGV unmanned transport vehicle and otherintelligent equipment, as well as in combination with information integration technology, it realized the interconnectionbetween 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 theover dependence on workers, reduced labor cost, and provided guarantee for the control of the quality stability of products,which was of great reference signicance for promoting the adjustment and upgrading of related industrial structure in thesame industry.3 Global marketing network and digital supply chain platformThe Company has always focused on global development, actively explored the world market, and constantlystrengthened 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 downstreamenterprises of the industry, and continuously exerted its localization advantages. Based on its global operation and servicenetwork, 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 professionalson the site all over the world, which can provide e?cient solutions and perfect spare parts service support and supply goodsto the world in the shortest time. Terminexus, a wholly-owned subsidiary of the Company, has built the rst digital supplychain platform in port machinery industry.
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I. Discussion and Analysis of the PerformanceIn 2020, under the guidance of the long-term goal of building a world excellent company with internationalcompetitiveness and the established strategies, the Company has overcome COVID-19 and other unfavorable factors,enhanced the condence in development, persisted in reform and innovation, and promoted the epidemic prevention andcontrol, 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 basicdevelopment of the Company. The Company products have entered 104 nations and regions, and the Company has won thebidding for some key projects including Adani, Maersk (Ivory Coast), COSCO Haikou and Xiuying Port. Intelligent straddlecarrier, 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 ofcore 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 SecondPassage, etc. The o?shore service business has actively expanded the business in the eld of o?shore wind power generalcontracting. The electrical business has been promoted in an orderly manner, and EZ electronic control has entered 83nations and regions; the advantages of PV brand are gradually emerging; the intelligent manufacturing project has madegreat progress. The integrated service business directly faced the challenge of the spread of overseas epidemic, andcompleted the main tasks of comprehensive production and operation objectives. In investment business, the secondaryoperation of existing project has achieved remarkable results.Emerging business made new progress. In smart parking business, it won Hengyang smart parking project and themulti-storey parking project of Shanghai Shuguang Hospital, and the economic benets gradually improved. In the livelihoodconsumption business, it has actively explored such elds 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’anarea further increased. The integrated development business continued to improve the qualification, the transformationadvantages of main business continued to show, and the key projects are implemented and progressing orderly. The digitalbusiness is gradually expanding, and the operation quality and e?ciency of Terminexus e-commerce platform continues tobe optimized.II.Performance during the reporting period
During the reporting period, the Company realized the operating revenue amounting to RMB 22,655,000,000,representing a year-on-year decrease of 7.89%; the net prot attributable to the shareholders of the listed company wasRMB 422,000,000, with a year-on-year decrease of 18%; the basic earnings per share was RMB 0.08,with a year-on-yeardecrease of 18.37%.1 Analysis of the performance
1. Analysis table of changes in the related items in prot statement and cash ow statement
Unit: Yuan Currency: CNYItemAmount in the current periodAmount in the same period of the last yearChange (%)Operating revenue22,655,141,65224,595,587,883-7.89Operating cost19,413,265,25420,590,531,322-5.72Selling and distribution expenses105,763,639122,517,036-13.67General and administrative expenses937,700,8391,095,131,287-14.38Research and development expenditures737,468,137887,096,178-16.87Financial expenses1,117,741,8641,496,586,414-25.31Investment income413,517,783174,600,552136.84Credit impairment loss-138,083,561-38,761,593N/AAssets impairment loss-213,647,223-52,494,284N/AIncome from disposal of assets6,755,68849,091,913-86.24Net cash ows from operating activities819,389,0201,290,213,109-36.49Net cash ows from investing activities-1,204,413,136-1,547,161,450N/ANet cash ows from nancing activities349,410,948141,933,820146.18
Section IVDiscussion and Analysis of the Performance
1111
2020
2. Analysis of revenue and cost
√ Applicable □ Not Applicable
The decrease in operating revenue was mainly caused by the delay of some foreign projects a?ected 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 a?ected bythe 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 expensedexpenditures 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 theCompany.The increase in the investment income was mainly caused by the increase in the investment income from the disposalof held-for-trading nancial assets of the Company.The change in credit impairment loss was mainly caused by the increase in the Company’s provision for bad debts ofaccounts receivable.The change in asset impairment loss was mainly caused by the increase in the Company’s provision for inventorydepreciation.The decrease in the income from disposal of assets was mainly caused by the decrease in the net gains from thedisposal of xed assets.The changes in the net cash ows from operating activities were mainly caused by the decrease of tax returns receivedby the Company.
The changes in the net cash flows from investing activities were mainly caused by the investment recovery by theCompany and the increase in the cash received from investment income.The changes in the net cash ows from nancing activities were mainly caused by the increase in cash received by theCompany from bank borrowings.
(1) Main businesses by sectors, products and regions
Unit: Yuan Currency: CNYMain business by productsProduct
Operatingrevenue
Operating cost
Grossprot rate
(%)
Year-on- yearchange in operatingrevenue (%)
Year-on-yearchange inoperating cost (%)
Year-on-yearchange in gross
prot rate (%)Port machinery14,457,042,91611,813,606,07818.28-12.16-10.78-1.27Heavy-duty equipment1,062,669,195994,642,2196.40-28.76-18.35-11.93“Building-Transfer”project and engineeringconstruction
2,365,760,8742,220,603,9496.14-7.74-8.58+0.87Steel structure and relatedincome
3,277,507,6513,170,269,4433.2720.9723.29-1.82Marine transport and others1,233,658,7391,106,003,12410.3524.7215.27+7.36
Main business by regionsRegion
Operatingrevenue
Operating cost
Grossprot rate(%)
Year-on- yearchange in operatingrevenue (%)
Year-on-yearchange inoperating cost (%)
Year-on-yearchange in grossprot rate (%)Chinese Mainland12,945,383,84811,967,807,7847.554.856.85-1.73Chinese Mainland (exportsales)
1,061,063,332760,474,24128.3352.22117.67-21.55Europe2,604,103,1742,329,595,32710.54-23.78-22.06-1.97Asia (excluding ChineseMainland)
3,289,553,4922,404,009,13326.92-5.20-3.18-1.52North America1,345,494,819948,458,08429.51-39.01-44.78+7.37South America444,522,956451,059,902-1.47-53.85-47.20-12.77Africa468,958,316264,264,07243.65-38.41-48.55+11.10Oceania237,559,438179,456,27024.46-32.66-42.45+12.85Notes 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 income
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from the export sales of this Company to the overseas subsidiaries of the Company and then sales to the related projects ofthe domestic customers.
2)A?ected 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-prot relationship
□Applicable √ Not Applicable
(3) Cost analysis table
Unit: YuanBy productsProductItems of cost structure
Amount in thecurrent period
Proportion intotal cost inthe currentperiod (%)
Amount in thesame period ofthe last year
Proportion of the onein the same period ofthe last year in totalcosts (%)
Year-on-yearchange(%)
NotesPort machinery
Raw material cost, laborcost and production cost
11,813,606,07861.1913,240,912,28664.85-10.78
Normal operating
uctuationsHeavy-dutyequipment
Raw material cost, laborcost and production cost
994,642,2195.151,218,182,0315.97-18.35
Normal operating
uctuationsEngineeringconstruction projects
Raw material cost, laborcost and production cost
2,220,603,94911.502,428,961,15911.90-8.58
Normal operating
uctuationsSteel structure andrelated income
Raw material cost, laborcost and production cost
3,170,269,44316.422,571,473,99412.5923.29
Normal operating
uctuationsMarine transportand others
Raw material cost, laborcost and production cost
1,106,003,1245.73959,513,5614.7015.27
Normal operating
uctuationsOther information about cost analysisNone
(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; thesales volume of the related parties in that of top 5 customers was RMB 897.72 million, accounting for 4% of total annualsales 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 annualpurchase amount.Other descriptionNone
3. Expenses
√ Applicable □ Not Applicable
The decrease in selling and distribution expenses was mainly caused by the decrease in travel expenses a?ected bythe 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 expensedexpenditures 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 theCompany.
4. Investment in R&D
(1) Detail table of investment in R&D
√ Applicable □ Not Applicable
Unit: YuanCurrent expensed investment in R&D737,468,137Current capitalized investment in R&D111,203,919Total investment in R&D848,672,056Proportion of total investment in R&D in operating revenue (%)3.75Number of R&D employees in the Company1,617Proportion of number of R&D employees in the total employees of the Company (%)18.6Proportion of capitalized investment in R&D (%)
13.10
1313
2020
(2) Explanation
□Applicable √ Not Applicable
5. Cash ow
√ Applicable □ Not Applicable
The net cash flows from operating activities were RMB 819 million, mainly caused by the decrease of tax returnsreceived by the Company. The net cash flows from investing activities were RMB -1.204 billion, mainly caused by theinvestment recovery and the increase in cash received from investment income. The net cash ows from nancing activitieswere RMB 349 million, mainly caused by the increase in the cash received from borrowings by the Company.2 Explanation for the signicant changes in prots due to non-main business
□Applicable √ Not Applicable
3 Analysis of assets and liabilities
√ Applicable □ Not Applicable
1. Assets and liabilities
Unit: YuanItem
Amount atthe end of thecurrent period
Proportion of theamount at the endof the current periodin total assets (%)
Amount atthe end of theprevious period
Proportion of theamount at the end ofthe previous periodin the total assets (%)
Year- on-year change(%)
NotesAccounts receivable7,227,065,2559.114,966,175,5286.6745.53Inventories22,325,839,11628.158,561,251,58011.51160.78Outstanding payments forconstruction completed
—0.0012,434,158,62416.71-100Contract assets2,063,296,8902.60—0.00N/ANon-current assets due within oneyear
1,884,370,4442.381,313,203,5811.7643.49Deferred income tax assets752,960,6720.95486,197,6350.6554.87Other non-current assets837,004,2891.06161,337,2870.22418.79Other non-current nancial assets330,094,0570.42—0.00N/AAdvances to suppliers4,893,6750.01822,987,9861.11-99.41Contract liabilities11,195,309,08314.11—0.00N/AAmount settled for uncompleted work —0.001,679,950,8792.26-100Payroll payable188,799,9690.24329,978,2810.44-42.78Other payables481,065,7000.61711,389,9960.96-32.38Non-current liabilities due withinone year
1,374,465,3191.737,287,484,5139.79-81.14Long-term borrowings16,850,299,74221.248,413,339,98611.31100.28Estimated liabilities261,072,3180.33484,000,7720.65-46.06
Other descriptionThe increase in accounts receivable was mainly caused by the adjustment of the beginning amount under new revenuestandard.
The increase in inventories was mainly caused by the reclassification of outstanding payments for constructioncompleted under new revenue standard implemented by the Company.The decrease in outstanding payments for construction completed was mainly caused by the reclassification ofoutstanding 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 constructioncompleted 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-termreceivables due within one year.The increase in deferred income tax assets was mainly caused by the impact of the adjustment of undistributed protsat the beginning of the year under new revenue standard on enterprise income tax.
1414
The increase in other non-current assets was mainly caused by the reclassication of the contract warranty balanceunder new revenue standard implemented by the Company.The increase in other non-current nancial assets was mainly caused by the fair value of the remaining equity after theCompany lost the control of Tianhe Mechanical Equipment Manufacturing Co., Ltd.The decrease in advances from customers was mainly caused by the reclassication of advances from customers undernew revenue standard implemented by the Company.The increase in contract liabilities was mainly caused by the reclassication of amount settled for uncompleted work andadvances from customers under new revenue standard implemented by the Company.The decrease in amount settled for uncompleted work was mainly caused by the reclassication of amount settled foruncompleted 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 toCCCC.The decrease in the non-current liabilities due within one year was mainly caused by the decrease in the long-term bankborrowings 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 theproducts.
2. Particulars about main restricted assets by the end of the reporting period
√ Applicable □ Not Applicable
Item
Book value at theend of the period
Reason for restrictionMonetary funds50,332,396
Special fund, letter of guarantee from the bank and guarantee fund for L/C collectedfrom the overseas projects and deposited in the overseas supervision accountFixed assets2,821,018,550Collateral for loanLong-term receivables5,614,309,162Hypothecation for loanTotal8,485,660,108/
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 wasUSD 2.933 billion, which was basically the same as that in 2019. The value of the newly concluded contracts on marineengineering products and steel structure was USD 1.041 billion, with a year-on-year decrease of 28.84%, among which theone 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, a?ected 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 increasedtheir 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 ofautomated terminals, after-sales maintenance and renovation of existing equipment have become new bright spots in themarket. With the o?cial commercialization of 5G technology, the cutting-edge technologies such as 5G, articial intelligenceand 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, thedemand for o?shore supporting services such as energy exploitation, transportation, and installation will increase to a certainextent, but the trend of international oil prices still brings uncertainty to the recovery time of the o?shore industry.
The steel structure industry beneted from the increase in investment in infrastructure, and the overall situation of theindustry is more optimistic. At present, the Company focuses on the development of large, heavy and special steel structurebusiness, and the development trend is sound. However, due to the low access threshold, the competition is ercer, and thee?ciency 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 benet of
1515
2020supply and demand, advanced manufacturing and livelihood construction with multiplier e?ects, infrastructure construction,and other elds.
For emerging industries, the exploration and application of 5G and digital technologies will continue to empowermanufacturing. The reconstruction of old communities, the construction of prefabricated buildings, and the construction ofsmart cities are in line with the needs of the times and present strong development potential. With the support of nationalpolicies, the integrated development industry has gradually optimized its market environment, gradually consolidated itsindustrial 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 period5,027,018,064Changes in investment amount (RMB)382,244,511Investment amount in the same period of the last year4,644,773,553Change in investment amount (%)8.23
(1) Signicant equity investment
□Applicable √ Not Applicable
(2) Signicant non-equity investment
□Applicable √ Not Applicable
(3) Financial assets measured at fair value
√ Applicable □ Not Applicable
Stock equity held in other listed companiesStock code
Stockabbreviation
Initialinvestmentcost
Initialshareholdingratio (%)
Finalshareholdingratio (%)
Book valueat the end of
the period
Prot or lossin reporting
period
Changes inowners’ equityduring thereporting period
Accountingsubject
Source ofshares03969CRSC617,854,0001.161.16269,294,333-150,959,680-150,959,680
Held-for-tradingnancial assets
Purchase onmarket06198Qingdao Port308,515,5881.591.59415,582,601-58,710,297-58,710,297
Held-for-tradingnancial assets
Purchase onmarket300095Huawu Stock11,071,6065.885.88228,142,45081,991,39981,991,399
Held-for-tradingnancial assets
Contribution601919
COSCOSHIPPINGHOLDINGS
420,000,0000.910.45679,011,665423,923,787423,923,787
Held-for-tradingnancial assets
SubscriptionStock equity held in nancial enterprisesObjectname
Initialinvestmentcost
Initialshareholdingratio
Finalshareholdingratio
Book value atthe end of theperiod
Prot or lossin reportingperiod
Changesin owners’equity duringthe reportingperiod
Accountingsubject
Source ofsharesShenwanHongyuan
200,000﹤0.01﹤0.011,154,32447,22647,226
Held-for-tradingnancial assets
Subscription6 Sales of signicant assets and equities
□Applicable √ Not Applicable
1616
7 Analysis of the primary holding companies and the joint-stock companies
√ Applicable □ Not Applicable
Unit: YuanCompany NameMain product or services
Registeredcapital
Assets size
Net prot/
(loss)Shanghai Zhenhua HeavyIndustries Group (Nantong)Transmitter Co., Ltd.
Construction and installation of large-scale port equipment,engineering vessels, o?shore heavy equipment, mechanicalequipment, gear box for wind power generation equipment; large-sized reverse branch, transmission mechanism, dynamic positioning,large-sized anchor windlass, o?shore oil platform lifting device andcomponents; design and manufacturing of the accessories.
738,878,3291,833,587,48889,433,610Nanjing Ninggao New ChannelConstruction Co., Ltd
Engaged in the construction, investment and management ofNanjing-Gaochun new channel project.
100,000,000595,688,06826,778,436Shanghai Zhenhua Shipping Co.,Ltd
Operation of international o?shore sea transportation; ordinarycargo liner tra?c in the middle and lower reaches of Yangtze River;transportation of port machinery.
120,000,0001,775,588,20259,592,964Shanghai Zhenhua PortMachinery (Hong Kong) Co., Ltd.
Design, manufacturing and sales of port machinery, engineeringvessel, steel structure and other parts
HKD 50,000,00010,870,885,67835,397,463Shanghai Zhenhua HeavyIndustries Port Machinery GeneralEquipment Co., Ltd.
Sales of port loading and unloading machine, bulk cargo andcontainer machine, port engineering vessels (including oatingengineering crane), material handling mechanical products andparts, sales and technical services, installation and maintenance,technical consultation of all types of machine and equipment, keyparts of the raw materials and accessories equipment.
2,184,730,0003,225,607,72648,936,687Nantong Zhenhua HeavyEquipment Manufacturing Co.,Ltd.
Installation of heavy port equipment, engineering vessels, heavymetal structure and its parts; manufacturing and installation of gearbox, container yard crane, super heavy-duty bridge steel structure,heavy marine machinery equipment; leasing of cranes; specializedcontracting of steel structures etc.
2,500,000,0006,287,765,18412,140,203ZPMC Qidong Marine EngineeringCo., Ltd.
Machinery manufacturing303,000,0002,565,416,604-188,832,950Shanghai Zhenhua OceanEngineering Service Co., Ltd
Agency of international land transport, air transport, ocean
shipping and domestic freight; sales of large-scale port equipment,
engineering vessel equipment and marine materials at home
and abroad; construction of ocean engineering and leasing of
engineering vessels; import and export of goods and technologies,
transit trade, trade between enterprises and trade agency within the
free trade zone.
100,000,000871,685,06317,615,479Zhenhua Pufeng Wind Energy(HongKong) Co., Ltd.
Installation of o?shore wind turbineUSD 16,326,531186,954-2,207,576CCCC Financial Leasing Co., Ltd.Finance lease5,000,000,00047,306,443,892526,789,103China CommunicationsconstructionUSA. Inc
Construction of port, waterway, highway and bridge.USD 50,000,000235,069,766-7,042,723CCCC Estate Yixing Co., Ltd.Real estate development900,000,0001,460,500,23429,913,101Jiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
Fabrication and installation of steel structure; construction of
the foundation for o?shore wind power facilities, installation and
maintenance of equipment; construction and maintenance of
submarine cable system, construction of marine engineering;
installation and maintenance of equipment and leasing of equipment.
260,000,0003,471,495,98430,359,575Greenland Heavylift (Hongkong)Limited
Marine transportUSD 91,975,1582,074,726,597-54,103,2698 Particulars about structured entities controlled by the Company
□Applicable √ Not Applicable
III. Discussion and analysis of the future development of the Company1 Industrial structure and trend
√ Applicable □ Not Applicable
The development of port machinery industry is closely related to the development of shipping industry. The recoveryand high-quality development of shipping industry will further promote the port construction, in particular, the trend of digital
1717
2020development 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 o?shore industry.As one of the new energy sources, offshore wind power will attract enterprises to increase resource investment andconstruction, and further promote the collaborative development of offshore engineering equipment manufacturing andmarine economy.Under the background of rapid development of 5G and other emerging technologies, “new infrastructure” has becomean important driving force for the transformation of traditional infrastructure and the development of digital economy in Chinaand even in the world. The new integrated development mode of public transport and urban construction fields such asrailway, 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 deepdevelopment 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 importantnational strategic areas, and will also bring huge market opportunities for the transformation and upgrading of manufacturingindustry, 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 andindustrial development trend at present and in future, around “Industry 4.0” and “Made in China 2025”, by rmly seizingthe development opportunities of the reform of state-owned enterprises “Double Hundred Action”, in combination with thedevelopment features of equipment manufacturing industry. “Capital operation” will help the Company to extend the industrialchain of the port machine business and create the whole industrial chain of marine heavy industry and o?shore 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 thetie. The digitized transformation and upgrade of the Company under “Internet” can accelerate the upgrade of the informationsystem in an all-round way and create the cloud platform through the top information-oriented design of the Company to o?ermore convenient, e?cient, intelligent and integrated service to the global customers. Meanwhile, by using 5G technology asa carrier, we continue to enrich the concept of "Internet" and use smart port construction as a breakthrough to further expandthe rich connotation of "+ 5G" and apply 5G technology to various elds such as strategy, design, manufacturing, products,services, etc. to promote the quality revolution, e?ciency 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 developmentstrategy, seize the new market opportunities brought by the new development pattern, and continuously enhance its corecompetitiveness through scientific market research, comprehensive deepening of reform, and increasing scientific andtechnological innovation.
For port machinery business of the Company, it will aim to maintain the leading position in the industry, and seize theglobal intelligent terminal development opportunity to popularize the intelligent terminal; in the meanwhile, it will pay closeattention to the new changes in the industry, the new needs of users and the new trends of competitors brought by thedomestic port integration; make overall arrangement of the internal resources, innovate the business model, increase thecommunication with users, and implement high-end di?erentiated competition. O?shore business will adhere to di?erentiateddevelopment and promote the implementation of high-quality o?shore projects based on the industry development trendwhile improving the performance ability and promoting the resolution of o?shore asset risks. Steel structure business willfocus on the opportunities such as economic dual circulation, aim at key areas, expand business channels and enhancethe added value of steel structure products. The marine service business will rationalize the allocation of resources onthe premise of ensuring the competitive advantage of the Company’s primary business, and will pay great attention to thelatest policies of the state on offshore wind power business, and achieve economic benefits with professional industrialchain through strategic cooperation and di?erentiated competition. Electrical business will systematically summarize andanalyze the existing business, steadily promote electrical related business, and continue to promote EZ brand. For generalcontracting business, it will give full play to the advantages of the existing projects, actively expand other projects in theregion and improve the business scale. For investment business, it will further highlight the main business, strengthen thelifecycle management of investment projects, and improve the scienticity and rate of return of the investment.
In emerging industries, the smart industry should take advantage of the development trend of articial intelligence, bigdata, cloud computing and other technologies, and continue to march into the eld of intelligent transportation and smartcity construction. People’s livelihood consumption should seize the mass market and promote di?erentiated development.Integrated development should follow the national policy, identies the market position, and fully embodies the corporate
1818
social responsibility. Digital industry should grasp the development trend of 5G, continuously accumulate data, and take theadvantages of data to create scale and e?ciency.4 Potential risks
√ Applicable □ Not Applicable
Market risk: it mainly includes macroeconomic and industry cycle uctuation risk. The main business of the Companyis closely related to the operation and development of macro economy and the industry cycle of the shipping industry. Theslowdown of global economy, the trade friction between China and USA and the challenges from the deglobalization trendon the global economy impose some uncertainties on the development of the Company. Although the shipping industry isslightly resuscitative, the recovery speed is still uncertain, and the Company’s upstream customers are still cautious aboutthe new capital investment in ports and terminals.Countermeasures: the Company will establish a management system for the scientic study and judgment of the macropolitical and economic situation, identify the systematic risks in time, and make risk response plans in advance. In themeanwhile, the Company will focus on user needs, optimize products, improve services, look for increment from the stock,and continuously optimize its business structure and prot model.Financial risk: it mainly includes interest rate and exchange rate change risk. The Company’s interest rate risk mainlycomes from interest-bearing liabilities. In addition, a certain proportion of overseas business brings a certain scale of foreignexchange revenue and expenditure to the Company.Countermeasures: the Company will strengthen the dynamic study and judgment of capital situation, further strengthenthe overall capital management, broaden nancing channels and rationalize nancing costs. For exchange rate risk control,the Company will control exchange rate risks through locking in the forward exchange rate, gradually reduce the foreignexchange liabilities, pay attention to the research on policies and strategies of foreign exchange risk management, closelyconcern the changes in exchange rates, regularly analyze the trend of exchange rate, strictly conduct the approval procedurerelated to the transaction of the nancial 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 isdeeply aware of the arduousness, complexity and long-term nature of epidemic prevention and control, and will always takeepidemic 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 normalizedepidemic 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 theprovisions of the standard or state secret and business secrete and other special reasons
□Applicable √Not applicable
1919
2020Section VImportant EventsI. Proposal for prot distribution of ordinary shares or convention of capital reserves into bonus shares1 Formulation, implementation or adjustment of cash dividend distribution policies
√Applicable □Not applicable
According to the requirements of the Circular on Further Implementation of Relevant Matters Concerning CashDividend Distribution of Listed Companies (ZJF [2012] No. 37) issued by the CSRC, as proposed by the 10th meeting ofthe Company’s fth session of Board held on August 21, 2012, amendments were made to the Articles of Association of theCompany concerning prot distribution and cash dividends policy, and as a result, the dividend distribution standard andproportion became clearer, related decision making process and mechanism were 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 distributingdividends in cash.
On August 27, 2020, the B-share profit distribution plan of the Company for 2019 was completed by distributingdividends in cash.2 The Company’s plan or proposal for prot distribution of ordinary shares, plan or proposal for the conventionof capital reserves into bonus shares in recent 3 years (including the reporting period)
Unit: Yuan Currency: CNYYear fordividenddistribution
Bonussharesfor every10 shares(share)
Dividend forevery 10 shares(Yuan) (taxincluded)
Sharesconverted forevery 10 shares
(share)
Amount ofcash dividend(tax included)
Net prot attributable
to the ordinaryshareholders of thelisted company in theconsolidated statementin the year for dividend
distribution
Ratio of the net protattributable to theordinary shareholdersof the listed companyin the consolidatedstatements (%)20200000422,240,2990201900.50263,417,675514,930,14351.16201800.50263,417,675443,005,09259.463 Shares repurchased by o?er in cash and included in cash dividends
□Applicable √Not applicable
4 If the prot is positive in the reporting period and the prot of the parent company available for distributionto the ordinary shareholders is positive but the Company does not represent the plan or proposal for profitdistribution of ordinary shares in cash, the Company shall disclose in detail the reasons and the purpose and useplan of the undistributed prot
√Applicable □Not applicable
The reason for not representing the plan or proposal for prot distribution of ordinaryshares in cash though the prot is positive and the prot of the parent company available
for distribution to the ordinary shareholders is positive in the reporting period
Purpose and use plan of the
undistributed protAccording to the relevant provisions of the Circular on Further Implementation of Relevant MattersConcerning Cash Dividend Distribution of Listed Companies and the Regulatory Guidelines for ListedCompanies No. 3 - Cash Dividends of Listed Companies issued by the CSRC, and the articles ofassociation, in order to ensure the long-term healthy and sustainable development of the Company andsafeguard the shareholders’ long-term interests, the Company will not distribute prots or transfer capitalreserve to share capital in view of the business performance in 2020.
For business development.
2020
II. Fulllment of commitments1 Commitments of the actual controller, shareholders, related parties, acquirer, companies of the Company in thereporting 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 theearnings forecast period, the Company shall explain whether the asset or project reaches the original earningsforecast and give the reasons
□Reached □Failing to reach √Not applicable
3 Fulllment 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 accountingpolicies and accounting estimates or correction of signicant accounting errors1 Analysis and explanation of the Company on the causes and the impacts of the changes in accounting policiesand accounting estimates
√Applicable □Not applicable
See V.44 in Section XI for details.2 Analysis and explanation of the cause of correction of signicant accounting errors and their impacts by theCompany
□Applicable √Not applicable
3 Communication with former CPA rm
□Applicable √Not applicable
4 Other description
□Applicable √Not applicable
VI. Engagement and dismissal of the public accounting rm
Unit: Yuan Currency: CNYNow engagingName of the domestic accounting rmErnst & Young LLP. (Special General Partnership)Remuneration of domestic accounting rm4,700,000Audit term of the domestic accounting rm5
NameRemunerationAccounting rm performing internal control auditErnst & Young LLP. (Special General Partnership)450,000Particulars about the engagement and dismissal of the accounting rm
□Applicable √Not applicable
2121
2020Particulars about reappointment of the accounting rm 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: 10,000Yuan Currency: CNYIn the reporting period:
Plainti?(applicant)
Defendant(respondent)
Partybearingjointliabilities
Type oflawsuit andarbitration
Background of the lawsuit (arbitration)
Amountinvolvedin lawsuit(arbitration)
Estimatedliabilities andamount caused
by lawsuit(arbitration) or not
Progressin lawsuit(arbitration)
Results ofthe lawsuit(arbitration)and impacts
Execution ofadjudication
of lawsuit(arbitration)
ShanghaiZhenhuaHeavyIndustriesCo., Ltd,and ZPMCQidongMarineEngineeringCo., Ltd.
NantongHuafu PortCo., Ltd, LiAidong, andZhao Xiaohua
NoneLawsuit
At the end of February 2014, the Companycompleted the acquisition of the formerJiangsu Daoda Ocean Engineering Co.,Ltd through capital increase and held 67%of the shares. At the same time, it wasagreed that the losses of the company,was borne by the former shareholdersincluding Nantong Huafu Port Co., Ltd, LiAidong and Zhao Xiaohua before February28, 2014. During the subsequent businessprocess, it was found that the former DaodaCompany untruthfully disclosed somematters of lawsuit or debts, resulting in aseries of losses of the Company. Throughthe related audit and readjustment etc., itwas deemed that the loss of RMB 368.7222million Yuan should be in borne in theformer shareholders and the lawsuit wasprosecuted again after an inconclusivepress for payment.
36,872.220
The case is stillpending
Not yet judgedNot yet judged
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 rectication
□Applicable √Not applicable
XII. Particulars about the credit conditions of the Company and its controlling shareholder and the actual controllerduring the reporting period
□Applicable √Not applicable
2222
XIII. The Company’s equity incentive plan, employee stock ownership plan or other incentives to the employees andtheir impacts1 Related incentives disclosed in provisional announcement, without progress or change in follow-upimplementation
□Applicable √Not applicable
2 Incentives not disclosed in provisional announcement or with follow-up progressEquity 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 transactions1 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: CNYRelated partyRelationship
Type ofrelatedtransaction
Content of relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of relatedtransaction
Proportion
in theamountof similartransactions
(%)Settlementmode ofassociatedtransaction
Market price
Reasonfor greatdi?erencesbetweenthe bargainprice andmarketpriceChina Road & BridgeCorporation
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
897,728,442897,728,4420.30Cash897,728,442/CCCC Third HarborEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
424,401,835424,401,8350.14Cash424,401,835/CCCC Second HarborEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
283,456,305283,456,3050.10Cash283,456,305/Jiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
Joint venture
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
231,829,678231,829,6780.08Cash231,829,678/Road & Bridge InternationalCo., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
229,793,506229,793,5060.08Cash229,793,506CCCC Third HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
173,821,696173,821,6960.06Cash173,821,696/CCCC Second HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
138,705,156138,705,1560.05Cash138,705,156/CCCC Electrical and MechanicalEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
88,938,05388,938,0530.03Cash88,938,053/China CommunicationsConstruction Company Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
78,205,83578,205,8350.03Cash78,205,835/CCCC First Harbor ConsultantsCo., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
69,444,73969,444,7390.02Cash69,444,739/CCCC Tianjin Industry andTrade Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
50,952,32350,952,3230.02Cash50,952,323/ZPMC-OTL Marine ContractorLimited
Joint venture
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
38,016,39038,016,3900.01Cash38,016,390/ZPMC Southeast Asia Pte. LtdAssociated company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
37,632,12337,632,1230.01Cash37,632,123/
2323
2020
Related partyRelationship
Type ofrelatedtransaction
Content of relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of relatedtransaction
Proportionin theamountof similartransactions
(%)Settlementmode ofassociatedtransaction
Market price
Reasonfor greatdi?erences
betweenthe bargainprice andmarketpriceThe First ConstructionCompany of CCCC SecondHarbor Engineering Co., Ltd
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
36,724,13836,724,1380.01Cash36,724,138/CCCC - SHEC Third HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
34,008,54734,008,5470.01Cash34,008,547/Installation Engineering Co.,Ltd. of CCCC First HarborEngineering Co. Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
22,123,89422,123,8940.01Cash22,123,894/CCCC First Harbor EngineeringCo., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
20,139,62020,139,6200.01Cash20,139,620/CCCC First HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
14,921,00814,921,0080.01Cash14,921,008/China Harbor Engineering Co.,Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
13,927,29513,927,2950.00Cash13,927,295/CCCC Tunnel Engineering Co.,Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
12,218,36212,218,3620.00Cash12,218,362/CCCC Yancheng ConstructionDevelopment Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
11,855,95211,855,9520.00Cash11,855,952/CCCC Shanghai EquipmentEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
8,761,0758,761,0750.00Cash8,761,075The Third Engineering Companyof CCCC Fourth HarborEngineering Co., Ltd
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
6,559,1406,559,1400.00Cash6,559,140CCCC First Highway ElectricationEngineering Co., Ltd
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
6,129,2106,129,2100.00Cash6,129,210No.3 Co. of The Second
Navigational Engineering
Bureau, CCCC
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
5,053,0605,053,0600.00Cash5,053,060CCCC - SHEC ElectricalEngineering Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
4,731,6904,731,6900.00Cash4,731,690CCCC Tianhe MechanicalEquipment Manufacturing Co.,Ltd
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
4,698,8394,698,8390.00Cash4,698,839Beijing Rate ElectronicTechnology Developing Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
3,550,8893,550,8890.00Cash3,550,889CCCC Xi’an Road ConstructionMachinery Co., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
1,327,4341,327,4340.00Cash1,327,434CCCC International ShippingCo., Ltd
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
1,044,7851,044,7850.00Cash1,044,785Road & Bridge InternationalCo., Ltd.
Holding subsidiary ofparent company
Selling goods/other inows
Project income/lease of assets
Pricing basedon market price
78,50978,5090.00Cash78,509No.2 Engineering Co., Ltd.of CCCC Third HarborEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
691,422,066691,422,0660.32Cash691,422,066/CCCC Fourth HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
306,195,275306,195,2750.14Cash306,195,275/CCCC Second HarborEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
301,152,978301,152,9780.14Cash301,152,978/CCCC Third HarborEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
204,828,721204,828,7210.10Cash204,828,721/CCCC First HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
201,690,439201,690,4390.09Cash201,690,439/CCCC Tianjin Dredging Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
100,525,545100,525,5450.05Cash100,525,545/CCCC Third HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
60,479,32560,479,3250.03Cash60,479,325/ZPMC Southeast Asia Pte. LtdAssociated company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
59,340,65259,340,6520.03Cash59,340,652/Shanghai CommunicationsConstruction Contracting Co.,Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
36,281,82836,281,8280.02Cash36,281,828/
2424
Related partyRelationship
Type ofrelatedtransaction
Content of relatedtransaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of related
transaction
Proportionin theamountof similartransactions
(%)
Settlementmode ofassociatedtransaction
Market price
Reasonfor greatdi?erencesbetweenthe bargainprice andmarketpriceNo. 2 Engineering Co., Ltd.of CCCC Fourth HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
32,430,36832,430,3680.02Cash32,430,368/CCCC Water TransportationPlanning and Design InstituteCo., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
26,070,99026,070,9900.01Cash26,070,990/Road & Bridge East ChinaEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
23,620,15923,620,1590.01Cash23,620,159/CCCC Second HighwayEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
21,674,42121,674,4210.01Cash21,674,421/CCCC First Highway FifthEngineering Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
17,768,78517,768,7850.01Cash17,768,785/CCCC Worldcom (Chongqing)Heavy Industries Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
14,309,19414,309,1940.01Cash14,309,194/China Road & BridgeCorporation
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
10,988,74810,988,7480.01Cash10,988,748/CCCC Second HighwayConsultants Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
5,420,2885,420,2880.00Cash5,420,288/China CommunicationsConstruction Company Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
4,388,5494,388,5490.00Cash4,388,549/CCCC Third Harbor ConsultantsCo., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
3,577,9823,577,9820.00Cash3,577,982/ZPMC Mediterranean LimanMakinalari Ticaret AnonimSirketi
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
3,690,4803,690,4800.00Cash3,690,480/CCCC Tianhe MechanicalEquipment Manufacturing Co.,Ltd
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
1,834,8621,834,8620.00Cash1,834,862/Shanghai ChinaCommunications WaterTransportation Design &Research Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
1,748,8531,748,8530.00Cash1,748,853/CCCC First Harbor ConsultantsCo., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
1,293,5851,293,5850.00Cash1,293,585/CCCC Xingyu Technology Co.,Ltd
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
1,291,5161,291,5160.00Cash1,291,516/Shanghai Waterway LogisticsCo., Ltd
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
1,009,1741,009,1740.00Cash1,009,174/Installation Engineering Co.,Ltd. of CCCC First HarborEngineering Co. Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
908,257908,2570.00Cash908,257/CCCC Highway ConsultantsCo., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
258,180258,1800.00Cash258,180/CCCC Marine Engineering &Technology Research CenterCo., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
207,203207,2030.00Cash207,203/CCCC WuHan HarbourEngineering Design andResearch Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for the
Company
Pricing basedon market price
68,80768,8070.00Cash68,807/CCCC Shanghai HarborEngineering Design & ResearchInstitute Co., Ltd.
Holding subsidiary ofparent company
Receipt ofservices
Consignedprocessing for theCompany
Pricing basedon market price
55,04655,0460.00Cash55,046/CCCC Shanghai EquipmentEngineering Co., Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
645,334,160645,334,1600.73Cash645,334,160/ZPMC Changzhou CoatingsCo., Ltd
Associated company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
83,224,89783,224,8970.09Cash83,224,897/CCCC Tianjin Industry andTrade Co., Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
66,687,67266,687,6720.08Cash66,687,672/
2525
2020
Related partyRelationship
Type ofrelatedtransaction
Content of related
transaction
Pricingprincipleof relatedtransaction
Price ofrelatedtransaction
Amount of related
transaction
Proportion
in theamountof similartransactions(%)
Settlement
mode ofassociatedtransaction
Market price
Reasonfor greatdi?erencesbetweenthe bargainprice andmarketpriceInstallation Engineering Co.,Ltd. of CCCC First HarborEngineering Co. Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
61,964,86061,964,8600.07Cash61,964,860/Shanghai Jiangtian IndustrialCo., Ltd.
Holding subsidiary ofparent company
Purchase of
goods
Providing materialsfor the Company
Pricing basedon market price
10,044,73510,044,7350.01Cash10,044,735/Chongqing YongjiangExpressway Investment andConstruction Co., Ltd of FHECof CCCC
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
9,557,2139,557,2130.01Cash9,557,213/CCCC Shanghai ChannelEquipment Industry Co., Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
3,466,4833,466,4830.00Cash3,466,483/China CommunicationsConstruction Company Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
2,254,6062,254,6060.00Cash2,254,606/CCCC National EngineeringResearch Center of DredgingTechnology and Equipment Co., Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
2,151,7252,151,7250.00Cash2,151,725/CNPC & CCCC PetroleumSales Co., Ltd.
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
2,047,7522,047,7520.00Cash2,047,752/CCCC (Xiamen) InformationCo., Ltd
Holding subsidiary ofparent company
Purchase ofgoods
Providing materialsfor the Company
Pricing basedon market price
20,97120,9710.00Cash20,971/Total//5,972,066,878///Details of large amount of sales returnsExplanation for relatedtransactions
The Proposal on Estimating Routine Related Transactions for Years 2019-2021 was approved upon deliberation at the rstprovisional general meeting in 2019 of the Company. In 2020, the amount of the annual related transactions in the normalbusiness between the Company and its subsidiaries and China Communications Construction Co., Ltd. and its subsidiariesdid not exceed RMB 10 billion. The Annual General Meeting had authorized the Company’s management to handle therelevant specic matters.
2 Related transactions arising from acquisition or o?ering of assets or stock equity
1. Events disclosed in provisional announcement, without progress or changes in follow-up implementation
□Applicable √Not applicable
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 eventsQuery indexOn August 28, the 16
th meeting of the 7
thboard of directors deliberated andpassed the Proposal on Capital Increase and Related Party Transactions ofCCCC Yancheng Construction Development Co., Ltd.
Website of Shanghai Stock Exchange: www.sse.com.cn, andShanghai Securities News and Hong Kong Wen Wei Po onAugust 29, 2020On August 28, the 16
th meeting of the 7
thboard of directors deliberated andpassed the Proposal on Giving up the Priority of Capital Increase Right ofSubsidiaries and Related Party Transactions
Website of Shanghai Stock Exchange: www.sse.com.cn, andShanghai Securities News and Hong Kong Wen Wei Po onAugust 29, 2020
2626
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: CNYName oflessor
Name of lessee
Leasedassets
Amountinvolved inleased assets
Startingdate ofleasing
Termination
date ofleasing
Income fromleasing
Basis fordeterminingincome fromleasing
Impacts ofincome fromleasing on theCompany
Relatedtransactionor not
RelationshipTheCompany
Shanghai ZhenlongAsset ManagementCo., Ltd, and othercompanies
Lease ofhouses
240,593,148.00
August 10,2012
July 9, 202547,718,300.00Agreed47,718,300.00NoOther
Leasing explanationNone
2 Guarantee
√Applicable □Not applicable
Unit: Yuan Currency: CNYExternal guarantee of the Company (excluding guarantee to the subsidiaries)Guarantor
Relation betweenthe guarantorand the listedcompany
GuaranteedpartyGuaranteedamount
Date of guarantee(signing date ofagreement)
Startingdate ofguarantee
Duedate ofguarantee
Type ofguarantee
Fulllmentof theguaranteeor notOverdueor notAmount ofoverdueguarantee
Counterguaranteeor notGuaranteeby therelated partyor not
RelationshipTotal amount of guarantee incurred during the reporting period (excluding guarantee to thesubsidiaries)Total balance of guarantee at the end of the reporting period (A) (excluding guarantee to thesubsidiaries)
Guarantee of the Company and its subsidiaries to the subsidiariesTotal amount of guarantee to the subsidiaries incurred during the reporting period-241,324,194Total balance of guarantee to the subsidiaries at the end of the reporting period (B)1,810,341,787
Total amount of guarantee of the Company (including guarantee to the subsidiaries)Total amount of guarantee (A+B)1,810,341,787Proportion of total amount of guarantee in the net assets of the Company (%)10.60
2727
2020Including:
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)
1,446,253,214Amount of guarantee exceeding 50% of net assets (E)Total guarantee amount of the above three items (C+D+E)1,446,253,214Explanation for the joint and several repayment liabilities for the undue guaranteeDescription of guarantee
The Proposal for Providing Financing Guarantee to the Subsidiary Shanghai Zhenhua Port Machinery(Hong Kong) Co., Ltd. Was approved upon deliberation by the Company at the 1st provisional generalmeeting for 2008 held in September 22, 2008, which agreed to provide the nancial support to thesubsidiary in Hong Kong and provided the guarantee with the upper limit of USD 500 million for theloan it applied for through the bank. Guarantees provided by the Company to subsidiaries during thereporting period refer to the guarantees to subsidiaries in Hong Kong. Other guarantee matters wereapproved upon deliberation at the 30th meeting of the 5th Board of Directors.3 Consigned cash assets management
1. Consigned nancing
(1) General information of consigned nancing
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Information on individual consigned nancing
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Provision for impairment of consigned nancing
□Applicable √Not applicable
2. Consigned loans
(1) General information of consigned loans
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(2) Individual consigned loans
□Applicable √Not applicable
Other information
□Applicable √Not applicable
(3) Provision for impairment of consigned loans
□Applicable √Not applicable
3. Other information
□Applicable √Not applicable
4 Other material contracts
□Applicable √Not applicable
XVI. Particulars about other important events
□Applicable √Not applicable
XVII. Particulars about actively performing social responsibilities1 Poverty alleviation of the listed company
√Applicable □Not applicable
1. Targeted poverty alleviation program
√Applicable □Not applicable
According 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 Companyestablished 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 applicable
2828
In 2020, taking the principle of “Poverty Alleviation after Education” as the main working concept, the Companycentralized the resource to donate a number of indoor and outdoor facilities for Tue Town Kindergarten, including desks andchairs, siesta bed, all-in-one teaching machine, water dispenser and suspended oor, by which the local education resourcelack was improved. In the early stage of the outbreak of COVID-19, the Company donated a batch of materials to LanpingCounty where Tue Town is located to help them ght against COVID-19. It ordered a batch of work clothes from the clothingcompanies in Yingjisha County, Xinjiang to create employment and increase income for the led and registered households,and actively cooperated with the designated poverty alleviation villages and towns to carry out the training on appropriatetraditional Chinese medicine technology for rural doctors and the training on industrialization development of plateaucharacteristic agricultural products. In addition, the Company carried out the poverty alleviation through consumption andemployment there, and participated in the free construction project of Nujiang Dukou Bridge, helping the local infrastructureconstruction. The Company won the title of “Targeted Poverty Alleviation Star Enterprise granted” by Lanpei CountyCommittee of the CPC and Lanping County People’s government in 2020.
3. E?ectiveness of targeted poverty alleviation
√Applicable □Not applicable
Unit: 10,000Yuan Currency: CNYIndicatorsAmount and progressI. General conditionIncluding: 1. Funds178.08II. Itemized investment
1. Transfer employment for poverty alleviation
Including: 1.1 Investment in vocational skills training2.85
1.2 Number of trainees for vocational skills training (person/time)28
1.3 Number of employed people from led and registered poor
households (person)
2. Poverty alleviation through education
2.1 Investment in improving the education resources in poor areas41.74
3. Poverty alleviation through health improvement
Including: 3.1 investment in medical and health resources in poor areas2.51
4. Other items
4.1 Description of other items
Overall poverty alleviation funds of CCCG: RMB 600,000;cost of customized work clothes from Yingjisha County,Xinjiang: RMB 381,200; poverty alleviation funds fromexternal units: RMB 50,000; purchase of agriculturalproducts from poor areas: RMB 206,200; joint investmentin poverty alleviation through consumption with externalunits: RMB 72,400III. Awards (content and level)Targeted Poverty Alleviation Star Enterprise (county-level)
4. Subsequent targeted poverty alleviation program
√Applicable □Not applicable
In combination with the poverty alleviation requirements of “Continuing to take responsibilities, to implement policies,to 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 inLanping 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 qualityof the whole people.Based on the investigations of poverty alleviation, the Company plans to carry out the poverty alleviation work in 2021 inthe following aspects:
I. Poverty alleviation through Party Building. The Party branch of ZPMC will carry out partner assistance with YongchangCommunity 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 supportpropaganda in ZPMC and will continue to do well in poverty alleviation education.
2929
2020III. Poverty alleviation through employment. The Company will provide industrial worker jobs for the surplus labor forcein Tue Township and provide relevant training and teaching, so as to help them grow rapidly and to provide assistance for theCompany’s production base and domestic and foreign port and terminal production operations.
2 Fulllment of social responsibility
√Applicable □Not applicable
The Company actively performed the social responsibility, enhanced the responsibility management to create thebenefit 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 strategywith equipment manufacturing as the center and capital operation and Internet+ as two wings. In addition to the traditionaldominant plates such as port machinery, ocean engineering, system EPC and ocean transportation of heavy cargoes, theCompany also developed the intelligent industry, livelihood consumption, integrated development and digital industry, tomake contribution to the development of entity economy and the construction of the well-o? society.Adhering to the concept of "open development and all-win harmony", the Company speeded up the pace of "goingglobal", actively promoted the layout of overseas regional centers, and built Terminexus digital intelligent platform, to providefaster and more e?cient services to global users. Every year, the Company may hold the forum on intelligent solutions ofwharf to discuss the development plan with the global professionals. The Company made full use of the platform of ChinaInternational Import Expo to achieve mutual benet and common development with global enterprises.
The Company paid more attention to the green and sustainable development, actively invested in the research anddevelopment of green products, promoted the "change from oil into electricity" technology of dock equipment, and optimizedthe environmental protection properties of existing equipment; built intelligent terminals to achieve "zero emission" fromterminals and provided equipment support for the development of clean energy such as solar and wind power. The Companyfurther 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 protectionmanagement, created the environmental protection culture with vitality, set up the special training for environmentalprotection, enhance the environmental protection awareness of the sta?, 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 theCompany is located through activities such as party building and association building; released the Social ResponsibilityReport regularly to show the development trend of the enterprise; carried out the targeted poverty alleviation, promoted thepoverty alleviation month by month, and implemented xed-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 Companyconscientiously implemented the signicant 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 keywork 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 generalrequirements of “full coverage, zero tolerance, strict law enforcement and practical e?ect”, studied and solved the outstandingproblems that restricted the environmental protection work of the Company in accordance with the national laws, regulationsand industry standards, and promoted the environmental rectication 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 majorsubsidiaries: 1.13 tons of sulfur dioxide, 2.41 tons of nitrogen oxide, 71.10 tons of particulate matter (total amount controlimplemented in some subsidiaries), and 309.27 tons of VOCs; annual actual emissions: 1.09 tons of sulfur dioxide, 2.10tons of nitrogen oxide, 69.32 tons of particulate matter (actual emissions of the subsidiaries implementing total amountcontrol: 23.89 tons), and 254.92 tons of VOCs; total permitted amount of main pollutants in wastewater: 480.33 tons of CODand 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 supervisionmonitoring by environmental protection department and the self-monitoring of the enterprise, all kinds of pollutantsdischarged by the Company meet the corresponding emission limits specied 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”
3030
(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 thecompany orsubsidiary
Name of mainpollutant andcharacteristic
pollutant
Emissionmode
Numberofoutlets
Distributionof outlets
Emissionconcentration
Applicable pollutant emission standards
Totalemissions
in 2020
Permittedemissionsin 2020
Over-standardemissionsin 2020ShanghaiZhenhua HeavyIndustries Co., Ltd.Changxing Branch
SO
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Emission Standards of Pollutants for ShipbuildingIndustry (DB31/934-2015), Integrated EmissionStandard of Air Pollutants (DB31/933-2015) ofShanghai City, Emission Standards for OdorPollutants (DB31/1025-2016), Emission Standardof Air Pollutants for Boiler (DB31/387-2018), andEmission Standard of Air Pollutants for Industrial Kilnand Furnace (DB31/860-2014)
1.091.13None
NOx2.12.41NoneParticulate matter12.8618.74NoneVOCs142.95146.5475NoneCOD
Wastewateroutlet
Integrated Wastewater Discharge Standard(DB31/199-2018)
22.17189.4None
Ammonia nitrogen0.2214.25NoneShanghai ZhenhuaPort MachineryHeavy IndustriesCo., Ltd.
Particulate matter
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants(DB31/933-2015), Emission Standards for OdorPollutants (DB31/1025-2016), and Emission Standardof Air Pollutants for Industrial Kiln and Furnace(DB31/860-2014) of Shanghai City
3.5121.133None
VOCs43.6860.02NoneShanghai ZhenhuaHeavy Industries PortMachinery GeneralEquipment Co., Ltd.
Particulate matter
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Wastewater Discharge Standard(DB31/199-2018)
6.68630.14None
VOCs30.514445.56NoneShanghaiZhenhua HeavyIndustries Co., Ltd.Nantong Branch
Particulate matter
Organizedemission
Sandwashing andcoating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996)
4.486-None
VOCs30.140533.36NoneCOD
Wastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
122.613139.364None
Ammonianitrogen
2.84111.23None
Nantong ZhenhuaHeavy EquipmentManufacturingCo., Ltd.
Particulate matter
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996)
40.921-None
VOCs2.66817.187NoneCOD
Wastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
24.616127.218None
Ammonianitrogen
6.6248.64None
ZPMCTransmissionMachinery(Nantong) Co.,Ltd.
Particulate matter
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Integrated Emission Standard of Air Pollutants (GB16297-1996), Emission Standard of Air Pollutants forBoiler (GB13271-2014), and Emission Standard of AirPollutants for Industrial Kiln and Furnace (GB9078-1996)
0.0209-None
VOCs0.7361-NoneCOD
Wastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
2.95-None
Ammonianitrogen
0.2467-None
ZPMC QidongMarineEngineering Co.,Ltd.
Particulate matter
Organizedemission
Pretreatment,sand washingand coating
Meetingrelevantstandards
Reference standards: Integrated Emission Standardof Air Pollutants (DB31/933-2015) of ShanghaiCity, Emission Control Standard of Volatile OrganicCompounds for Industrial Enterprises (DB12/524-2014) of Tianjin City, and Emission Standards forOdor Pollutants (GB14554-1993)
0.8351.09None
VOCs4.2276.6NoneCOD
Wastewater
outlet
Integrated Wastewater Discharge Standard (GB8978-1996), Wastewater Quality Standards for Discharge toMunicipal Sewers (GB/T31962-2015)
6.45124.35None
Ammonianitrogen
0.3841.39None
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 subsidiarieshave comprehensively carried out environmental compliance rectication activities, strengthened the performance of dutiesfor ecological environmental protection, guided employees to give full play to their subjective initiative, and strengthenedsupervision, 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 Companyand its subsidiaries strengthened the comprehensive treatment of waste gas and wastewater pollutants during the reportingperiod. Changxing Base (including Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, Shanghai ZhenhuaPort Machinery Heavy Industries Co., Ltd., Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co.,
3131
2020Ltd.) has mainly implemented the rectication project of waste gas treatment facilities in painting workshop, workshop andouteld welding fume treatment rectication project, non-road mobile machinery renovation project, rainwater and sewagediversion reconstruction project, initial rainwater collection and treatment project, ambient air automatic monitoring systemconstruction 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 andinstalled three VOCs automatic monitoring systems. Shanghai Zhenhua Heavy Industries Co., Ltd Nantong Branch, ZPMCTransmission Machinery (Nantong) Co., Ltd and ZPMC Qidong Marine Engineering Co., Ltd have completed the installationof 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 haveworked in strict accordance with ISO14001 environmental management system standards. At present, the environmentalcontrol facilities of the Company have fully covered the waste gas, waste water, noise and solid wastes, and all kinds ofpollution 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 managementregulations of “Three Simultaneities” for environmental protection of national and local construction projects, and the projectshave gone through the procedures of environmental impact assessment and completion acceptance. See the table below fordetails:
Name of thecompany orsubsidiary
Project name
EIA approval/ acceptance
ShanghaiZhenhuaHeavyIndustriesCo., Ltd.ChangxingBranch
Changxing Island Base construction project of Shanghai Zhenhua Port Machinery Co., Ltd
AcceptancecompletedZPMC Changxing Island Inland Expansion ProjectNew 0# Outer Terminal Project of Shanghai Zhenhua Heavy Industries Co., Ltd Changxing Production Base3# Outer Terminal Project of ZPMC Changxing Base5# Terminal Project of ZPMC Changxing Island Production BaseZPMC Changxing Hot Dip Galvanizing Project4# Terminal Reconstruction Project of Shanghai Zhenhua Heavy Industries Co., Ltd Changxing BaseIntelligent manufacturing workshop for crane box of automated terminal of Shanghai Zhenhua HeavyIndustries Co., Ltd
EIA approvalhas beenobtainedNew hazardous wastes warehouse project of Shanghai Zhenhua Heavy Industries Co., Ltd ChangxingBranchNew paint shop project of Changxing Base2# Gas Station Project of Shanghai Zhenhua Heavy Industries Co., Ltd Changxing BaseShanghaiZhenhua PortMachineryHeavyIndustries Co.,Ltd.
Changxing Island Base construction project of Shanghai Zhenhua Port Machinery Co., Ltd
AcceptancecompletedZPMC Changxing Island Inland Expansion ProjectAdded integrated workshop of Changxing Export Base Land Expansion Project Phase IIIntelligent welding line construction project for super large lifting partsIntelligent production transformation and upgrading of port machinery parts
EIA approvalhas beenobtainedTechnical improvement project of painting automatic production lineB4 painting workshop of Axle Business DepartmentShanghaiZhenhuaHeavyIndustries PortMachineryGeneralEquipmentCo., Ltd.
Changxing Island manufacturing base project of Shanghai Port Machinery Manufacturing Plant
AcceptancecompletedAdjustment of the Changxing Island manufacturing base project of CCCC Shanghai Port MachineryManufacturing PlantChangxing Island manufacturing base project (extra-heavy shipping terminal and approach bridge) ofShanghai Port Machinery Manufacturing PlantPaint warehouse reconstruction project of Shanghai Zhenhua Heavy Industries Port Machinery GeneralEquipment Co., Ltd.
EIA approvalhas beenobtained
3232
Name of thecompany orsubsidiary
Project name
EIA approval/ acceptanceShanghai PortMachineryHeavyIndustry Co.,Ltd
New projects of Shanghai Port Machinery Equipment Manufacturing Co., Ltd
AcceptancecompletedProduct adjustment project of Shanghai Port Machinery Equipment Manufacturing Co., LtdShanghaiZhenhuaHeavyIndustries Co.,Ltd. NantongBranch
Annual output of 75 rail cranes, 8 bridge cranes or ship unloaders project
AcceptancecompletedAnnual output of 150 container yard bridges, 20,000t/a extra-heavy bridge steel structure and 10,000t/ao?shore heavy machinery and equipment project40 mu living quarter project of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.Supporting project of new A-class warehouse and self-use diesel supply point of Nantong Zhenhua HeavyEquipment Manufacturing Co., Ltd
Constructionin batches;partialacceptancehas beencompletedNantongZhenhuaHeavyEquipmentManufacturingCo., Ltd.
Nantong new production base project of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.
AcceptancecompletedSheet pile revetment terminal of Nantong New Production Base of Nantong Zhenhua Heavy EquipmentManufacturing Co., Ltd.Nantong Zhenhua 110kV factory substation projectSupporting living quarter project of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.Expansion of 100,000t/a sand washing paint steel components to 200,000t/a and 2980t stainless steel andnonferrous metal pipe ttings project of Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.
EIA approvalhas beenobtainedZPMCTransmissionMachinery(Nantong)Co., Ltd.
Gearbox factory project of Shanghai Zhenhua Port Machinery (Group) Co. Ltd (Nantong Zhenhua HeavyEquipment Manufacturing Co., Ltd.) Nantong BaseAcceptancecompletedNew large parts processing workshop and 4 # dormitory project of ZPMC Transmission Machinery (Nantong)Co., Ltd.5,000t/a marine pile legs and environmental protection equipment upgrading project of ZPMC TransmissionMachinery (Nantong) Co., Ltd.
EIA approvalhas beenobtainedZPMC QidongMarineEngineeringCo., Ltd.
Production project of products under 100,000 tons, including product tanker, chemical tanker, bulk carrierand marine engineering products of ZPMC Qidong Marine Engineering Co., Ltd.
AcceptancecompletedAccording to the requirements of the “Interim Provisions on the Administration of Pollutant Emission Permit” andthe “Technical Specication for Application and Issuance of Pollutant Emission Permit” of the state, the Company and itssubsidiaries have successively applied for pollutant emission permits since 2015 and applied for the change of pollutantemission permits according to regulations, and have obtained the “Pollutant Emission Permit” issued by local ecologicaland environmental protection department. In strict accordance with the requirements of emission permit, the Companycontinued to discharge pollutant as permitted, carried out self-monitoring, established accounts, reported regularly and madeinformation 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 ande?ectively 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 theemergency plans for subsidiaries, and led them with the local ecological and environmental protection department. During thereporting period, Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, Shanghai Zhenhua Port Machinery HeavyIndustries Co., Ltd, and Shanghai Zhenhua Heavy Industries Co., Ltd. Nantong Branch started and completed the revision,evaluation and ling of the emergency plan for environmental emergencies.
3333
2020
(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 pollutantdischarge 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 sourcemonitoring information management and sharing platform and Shanghai enterprise information disclosure platform.During the reporting period, the Company has built ve new boundary environmental monitoring stations in Changxingbase (including Shanghai Zhenhua Heavy Industries Co., Ltd. Changxing Branch, Shanghai Zhenhua Port Machinery HeavyIndustries Co., Ltd., Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd.), which have beenequipped with advanced environmental monitoring equipment to improve the accuracy of monitoring; the Company haschanged the monitoring management mode, taken monitoring, over standard analysis, rectication, tracking and supervisionas the important functions of environmental monitoring, and realized the closed-loop management of over standardproblems. In the meanwhile, it conscientiously carried out self-monitoring and released self-monitoring data and relatedinformation in a timely, complete and truthful manner according to national and local requirements. The self-monitoringannouncement 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 dened 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 HeavyIndustry 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 unitshave set up sewage treatment facilities; the atmospheric pollutants such as the particulate matter and VOCs in waste gaswere discharged in the manner of organized discharge; it is required to renovate spraying exhaust gas treatment facilitiesand provide workshop dust removal devices, etc.; the solid wastes and the hazardous wastes were handed over to thequalied 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 specialworking 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 applicable
3434
Section VIChanges in Ordinary Shares and Shareholders' SituationI. Changes in ordinary shares capital1 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 unchangedduring the reporting period.
2. Notes to changes in ordinary shares
□Applicable √Not applicable
3. E?ect of changes in ordinary shares on nancial indicators such as earnings per share and net asset per
share for the latest year and period (if any)
□Applicable √Not applicable
4. Other contents that the Company deems necessary to be disclosed or required to be disclosed by the
securities regulatory authority
□Applicable √Not applicable
2 Changes in shares with restrictive conditions for sales
□Applicable √Not applicable
II. Issuance and listing of securities1 Securities issuance by the reporting period
□Applicable √Not applicable
Particulars about the issuance of securities during the reporting period (for bonds of di?erent interest rates within theduration, please state them respectively)
□Applicable √Not applicable
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 controller1 Total number of shareholdersTotal of ordinary shareholders by the end of the reporting period228,621Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report232,566
3535
20202 Table of the shares held by top 10 shareholders, top 10 holders of marketable shares (or shareholders withouttrading limited conditions) by the end of reporting period
Unit: shareShares held by top 10 shareholdersName of shareholder(in full)
Changes inthe reportingperiod
Number ofshares held atthe end of theperiod
Ratio (%)
Number ofshares withtrading limitedconditions held
Pledge or freezingconditionNature ofshareholderSharestatus
Numberof sharesCCCG (HK) Holding Limited0916,755,84017.4010NA0
Overseaslegal personChina Communications ConstructionCompany Ltd.
0855,542,04416.2390NA0
State-ownedlegal personChina Communications Construction GroupCo., Ltd.
0663,223,37512.5890NA0
State-ownedlegal personCentral Huijin Asset Management Co., Ltd.089,378,6401.70UnknownUnknownBosera Fund - Agricultural Bank of China -Bosera China Securities Financial AssetsManagement Plan
019,855,9200.38UnknownUnknownE FUND Management- Agricultural Bankof China - E FUND Management ChinaSecurities Financial Assets Management Plan
019,855,9200.38UnknownUnknownDacheng Fund- Agricultural Bank of China- Dacheng China Securities Financial AssetManagement Plan
019,855,9200.38UnknownUnknownHarvest Fund - Agricultural Bank of China -Harvest CSI Asset Management Plan
019,855,9200.38UnknownUnknownGF Fund- Agricultural Bank of China - GF ChinaSecurities Financial Assets Management Plan
019,855,9200.38UnknownUnknownLombarda China Fund- Agricultural Bankof China - Lombarda China Fund ChinaSecurities Financial Assets Management Plan
019,855,9200.38UnknownUnknownChina Asset Management- Agricultural Bankof China - China Asset Management ChinaSecurities Financial Assets Management Plan
019,855,9200.38UnknownUnknownYinhua Fund- Agricultural Bank of China- Yinhua China Securities Financial AssetManagement Plan
019,855,9200.38UnknownUnknownChina Southern Asset Management-Agricultural Bank of China - China SouthernAsset Management China Securities FinancialAsset Management Plan
019,855,9200.38UnknownUnknownICBC Credit Suisse Fund- Agricultural Bank ofChina - ICBC Credit Suisse China SecuritiesFinancial Asset Management Plan
019,855,9200.38UnknownUnknownShareholdings of top 10 shareholders without trading limited conditionsName of shareholder
Number of non-restrictive circulationshares held
Type and number of sharesCategoryQuantityCCCG (HK) Holding Limited916,755,840
Foreignshares listeddomesticallyChina Communications Construction Company Ltd.855,542,044
RMB ordinary
shares
3636
Shareholdings of top 10 shareholders without trading limited conditionsName of shareholder
Number of non-restrictive circulation
shares held
Type and number of shares
CategoryQuantityChina Communications Construction Group Co., Ltd.663,223,375
RMB ordinary
sharesCentral Huijin Asset Management Co., Ltd.89,378,640
RMB ordinary
sharesBosera Fund - Agricultural Bank of China - Bosera China SecuritiesFinancial Assets Management Plan
19,855,920
RMB ordinary
sharesE FUND Management- Agricultural Bank of China - E FUND ManagementChina Securities Financial Assets Management Plan
19,855,920
RMB ordinary
sharesDacheng Fund- Agricultural Bank of China - Dacheng China SecuritiesFinancial Asset Management Plan
19,855,920
RMB ordinary
sharesHarvest Fund - Agricultural Bank of China - Harvest CSI AssetManagement Plan
19,855,920
RMB ordinary
sharesGF Fund- Agricultural Bank of China - GF China Securities FinancialAssets Management Plan
19,855,920
RMB ordinary
sharesLombarda China Fund- Agricultural Bank of China - Lombarda ChinaFund China Securities Financial Assets Management Plan
19,855,920
RMB ordinary
sharesChina Asset Management- Agricultural Bank of China - China AssetManagement China Securities Financial Assets Management Plan
19,855,920
RMB ordinary
sharesYinhua Fund- Agricultural Bank of China - Yinhua China SecuritiesFinancial Asset Management Plan
19,855,920
RMB ordinary
sharesChina Southern Asset Management- Agricultural Bank of China -China Southern Asset Management China Securities Financial AssetManagement Plan
19,855,920
RMB ordinary
sharesICBC Credit Suisse Fund- Agricultural Bank of China - ICBC Credit SuisseChina Securities Financial Assets Management Plan
19,855,920
RMB ordinary
sharesNotes to the related relation or consistent actions of the above-mentionedshareholders
Among the above top 10 shareholders, CCCG (HK) HoldingLimited, China Communications Construction Group Co.,Ltd. and China Communications Construction CompanyLtd. are related companies. It was unknown to theCompany whether there was related relation or concertedactor specied in the Management Method on InformationDisclosure for Shareholding Change of the Shareholders ofListed Companies.Explanation on preferred stock holders with recovered voting rights andnumber of stocks held by themShareholding 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 applicable
3737
2020IV. Controlling shareholders and actual controllers
1 Controlling shareholder
1. Legal person
√Applicable □Not applicable
NameChina Communications Construction Group Co., Ltd.Company principal or legal representativeWang TongzhouDate of EstablishmentDecember 8, 2005
Main business
Construction of overseas projects and international bidding projects at home; generalcontracting for construction of various special ships, leasing and maintenance of specialship and construction machines; o?shore towage and professional services related to theocean engineering; technical consultant services regarding the ship and the supporting portequipment; engaging in the general contracting of construction projects for ports, channels,highways and bridges both home and abroad (including technical and economic consultationof engineering, feasibility study, survey, design, construction, supervision, procurementand supply for related complete set of equipment or materials, and equipment installation);undertaking the general contracting of the construction of industrial and civil works, railway,metallurgy, petrochemical, tunnel, power, mine, water conservancy, and municipal works;import and export business; real estate development and property management; investmentand management of transportation, hotel and tourism industries.Equities of other domestic and overseaspublic companies during the reportingperiod
CCCG holds 57.99% of the stock equity of CCCC (601800.SH) and it is the controllingshareholder. CCCG holds 100% of the stock equity of CCCG Real Estate Group Co., Ltd.;CCCG Real Estate Group Co., Ltd holds 100% of the stock equity of Zhongzhu Real EstateDevelopment Co., Ltd. Zhongzhu Real Estate Development Co., Ltd holds 53.32% of thestock equity of CCCG Real Estate Co., Ltd (name used before: Chongqing Industries,Zhongfang Real Estate) (000726.SZ) and it is the controlling shareholder. CCCG and itscontrolling 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% ofthe stock equity of Shanghai Zhenhua Heavy Industries Co., Ltd (600320.SH) and it is thecontrolling 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
CCCCShareholding ratio100%Shareholding ratio 17.4012%Shareholding ratio 16.2393%
Shareholding ratio 57.99%
Shanghai Zhenhua Heavy Industries, Co., Ltd.
CCCGCCCG HKShareholding ratio 12.5888%
3838
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
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
Shanghai Zhenhua Heavy Industries, Co., Ltd.
CCCGState-owned Assets Supervision andAdministration Commission of the State Council
Shareholding ratio 100%
Shareholding ratio 90%
Shareholding ratio 17.4012%Shareholding ratio 16.2393%
Shareholding ratio 57.99%CCCC CCCG HKShareholding ratio 12.5888%
Section VIIPreferred Shares
□Applicable √Not applicable
3939
2020
Section VIIIDirectors, Supervisors, Senior Executives and EmployeesI. 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
NamePost (Note)SexAge
Startingdate oftenure
Expirydate oftenure
Numberof sharesheldat thebeginningof year
Numberof sharesheld atthe endof theyear
Changeinsharesin theyear
Reason
ofchange
Total remunerationbefore tax fromthe Companyduring thereporting period(RMB’0,000)
Remuneration
from therelatedparty of theCompany or
notLiuChengyun
Generalmanager(president)
Male52
Mar. 3,2021
June 25,2021
0000YesDirector,chairman ofthe board
Mar. 19,2021
June 25,2021Liu Qizhong
Director, vicepresident
Male57
June 26,2018
June 25,2021
00066.69NoZhuXiaohuai
Director, CFOMale52
June 26,2018
June 25,2021
00069.09NoShengLeiming
Independentdirector
Male51
May 28,
2019
June 25,
2021
00012NoZhang Hua
Independent
director
Male48
May 28,
2019
June 25,
2021
00012NoYang Jun
Independent
director
Male64
June 26,
2018
June 25,
2021
00012NoZhaoZhanbo
Independent
director
Male45
June 26,
2018
June 25,
2021
00012NoJi Linhong
Independent
director
Male59
June 26,
2018
June 25,
2021
00012NoBai Yunxia
Independent
director
Female48
June 26,
2018
June 25,2021
00012NoWang Cheng
Supervisor,chairman ofthe board ofsupervisors
Male48
June 26,2018
June 25,2021
00069.09NoXiangXudong
SupervisorMale45
June 26,
2018
June 25,2021
00075.17NoYou HuaSupervisorMale58
June 29,
2020
June 25,2021
0000YesLiu JianboVice presidentMale58
Aug. 22,
2018
June 25,2021
00069.09NoZhou QiVice presidentMale49
Aug. 22,
2018
June 25,2021
00067.48NoChen BinVice presidentMale47
Aug. 22,
2018
June 25,2021
107,328107,328067.38NoShanJianguo
Vice presidentMale57
Aug. 22,
2018
June 25,2021
00067.89NoZhang JianVice presidentMale52
Aug. 22,2018
June 25,2021
00069.09NoFei GuoChief engineerMale59
Aug. 22,2018
June 25,2021
00067.54NoLi Ruixiang
Chiefeconomist
Male46
Aug. 22,2018
June 25,2021
00069.04No
4040
NamePost (Note)SexAge
Startingdate oftenure
Expirydate oftenure
Numberof sharesheldat thebeginning
of year
Numberof sharesheld atthe endof theyear
Change
insharesin theyearReason
ofchange
Total remunerationbefore tax fromthe Companyduring thereporting period(RMB’0,000)
Remunerationfrom therelatedparty of theCompany or
notSun Li
Chief legalcounsel,secretary of theboard, chiefcomplianceo?cer
Male49
Aug. 22,2018
June 25,2021
00066.70NoZhu Lianyu
Former directorand chairmanof the board
Male51
June 26,2018
Mar. 19,
2021
427,200427,200086.56NoHuangQingfeng
Former directorand president
Male46
June 26,
2018
Feb. 26,
2021
00085.84NoZhangHongwen
Former directorMale61
June 26,2018
Oct. 30,2020
0000YesDai Wenkai
Formerdirector, vicepresident
Male54
June 26,
2018
Sept. 4,
2020
00053.30NoZhangMinghai
Formersupervisor
Male59
June 26,
2018
June 1,2020
24,31124,311083.61NoTotal/////558,839558,8390/1,205.56/NameMain working experiences
LiuChengyun
Born in 1969, male, master, senior economist, senior engineer. He began his career in August, 1989 and has successively served as deputydirector of CCCC Fourth Harbor Engineering Co., Ltd, vice general manager of CCCC Investment Co., Ltd, secretary of the Party committee,chairman and general manager of CCCC Nansha Investment Development Co., Ltd. and CCCC Urban Investment Holding Co., Ltd,general manager and secretary of CPC Working Committee of CCCC South China regional headquarters, general manager of the StrategicDevelopment Department of China Communications Construction Company Ltd. (CCCC), general manager of the Investment Division of CCCC,director of the board o?ce 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 theCompany.
LiuQizhong
Born in 1964, male, bachelor, senior economist. He successively served as the manager of Operating Department and the vice president of theCompany, and serves as the director of the Company since March 2004. Currently, he is the director and vice president of the Company.
ZhuXiaohuai
Born in 1969, male, master of MBA, senior accountant. He began his career in July 1991 and successively served as the section member andvice section manager of Financial Division of CCCC Shanghai Dredging Co., Ltd, vice director of Budget and Finance Department, vice manager(in charge of the work) or manager of Finance Department, and member of commission for disciplinary inspection of CCCC Shanghai DredgingCo., Ltd, and the director, chief accountant and Party committee standing member of CCCC Shanghai Dredging Co. Ltd. Currently, he is thedirector and CFO of the Company.ShengLeiming
Born in 1970, male, doctor of laws, senior lawyer. He successively served as a lawyer assistant and lawyer in Shanghai Foreign Trade LawFirm, a teacher of civil and commercial law in East China University of Political Science and Law, a senior partner and chief lawyer of ShanghaiZhongmao Law Firm, and co-chairman, senior partner and lawyer in the head o?ce management committee of Guantao Law Firm. Currently, heis the independent director of the Company.Zhang
Hua
Born in 1973, male, Ph.D. Economics, associate professor of nance. He successively served as a researcher, lecturer, assistant professor andassociate professor at China Europe International Business School. Currently, he is the independent director of the Company.Yang Jun
Born in 1957, male, master degree. He successively served as intermediate and senior court judge of Shanghai Court, president andmember of the judicial committee member, Property Trade Operation Director of Shanghai United Property Rights Exchange. Now he is theassistant president of Shanghai United Property Rights Exchange, general manager of Beijing HQ, director of Financial Property Rights TradeCenter, arbitrator of China International Economic and Trade Arbitration Commission, Shanghai International Economic and Trade ArbitrationCommission, arbitrator of Shanghai Arbitration Commission, Shanghai Financial Arbitration Court, expert of China domain name disputeresolution center, director of Intellectual Property Association of China Law Society, director of Company Law Research Society of Shanghai LawSociety, director of Shanghai Patent/Trademark/Copyright Association. Currently, he is the independent director of the Company.
ZhaoZhanbo
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 ismainly engaged in the research in Internet business model innovation and corporate development strategy. Currently, he is the independentdirector of the Company.Ji Linhong
Born in 1962, male, Ph. D. He successively served as the assistant and the lecturer of Department of Precision Instrument of TsinghuaUniversity; assistant professor of Department of Precision Engineering of Faculty of Engineering of the University of Tokyo, the PostdoctoralResearcher in Ministry of Education, Culture, Sports, Science and Technology of Japan. He had acted as vice director of Department ofPrecision Instrument of Tsinghua University, vice director of Department of Mechanical Engineering of Tsinghua University, director of DesignEngineering Research Institute of Tsinghua University, director of Experiment & Teaching Center of Mechanical Engineering, and vice directorof State Key Lab of Tribology, Tsinghua University and so on. Now he serves as a professor and a doctoral tutor in Department of MechanicalEngineering, Tsinghua University. He is mainly engaged in digitalized design and system optimization of complicated mechanical system and theintelligent and biological mechanical design. Currently, he is the independent director of the Company.
4141
NameMain working experiences
BaiYunxia
Born in October 1973, female, Ph. D from Xiamen University, post-doctor in accounting of Guanghua School of Management, Peking University,professor of accounting, doctoral tutor, engaged in work in 1995. She successively served as the assistant engineer of Kaiyuan Group underXi’an Jiaotong University, lecturer of School of Economics and Management of Tongji University, research scholar of CKGSB. Now, she actsas the director of Department of Accounting, School of Economics and Management, Tongji University and the research scholar of InvestmentCenter of CKGSB. Currently, she is the independent director of the Company.WangCheng
Born in 1973, male, master of engineering, senior political worker. He successively served as the vice secretary or secretary of leaguecommittee, and vice secretary or secretary of Party Branch of No. 2 Engineering Co., Ltd of CCCC Third Harbor Engineering Co., Ltd; vicedirector and director of Organization Department of CCCC Third Harbor Engineering Co., Ltd; secretary of the Party Committee and vice generalmanager of No. 2 Engineering Co., Ltd of CCCC Third Harbor Engineering Co., Ltd; chairman of board of supervisors, vice secretary of the PartyCommittee, 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 ofboard of supervisors of the Company.XiangXudong
Born in 1976, male, bachelor, senior engineer. He successively served as the designer of No.2 Design Institute of Jiangnan Shipyard (Group)Co., Ltd, vice director and vice manager of the Quality Department of ZPMC, and general manager of ZPMC Inspection Co., Ltd. Currently, heis the sta? representative supervisor of the board of supervisors, vice general manager of ZPMC Port Machinery Group, and the secretary of theParty committee and executive vice general manager of Changxing Branch.You Hua
Born in 1963, male, bachelor, senior accountant. He successively served as the assistant director and deputy director of Finance Departmentof China Harbour Engineering Company Limited, and nance manager of CHUWA Bussan Company Limited (Japan); general manager of theFinance Department and director of Capital Settlement Center, deputy chief accountant and general manager of Finance Department of ChinaHarbour Engineering Company(Group); general manager of Capital Department and director of Capital Settlement Center of CCCG; directorand chief accountant of China Harbour Engineering Company Limited; director, vice general manager and chief accountant of CCCC InvestmentCo., Ltd; director, general manager and deputy Secretary of Party Committee of CCCC Finance Co., Ltd. Since December 2019, he has been afull-time outside director of CCCG. He is now a supervisor of the Company.Liu Jianbo
Born in 1963, male, bachelor, senior engineer. He successively served as the engineer at technological o?ce of Shanghai Port Machinery Plant;assistant director in engineering technology department of Shanghai Container Dock Co. Ltd., project director of ship operation department andchief 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, generalmanager of the Electric Appliance O?ce and chief engineer of the Company. Currently, he is the vice president of the Company.Chen Bin
Born in 1974, male, EMBA, senior engineer. He successively served as the project quality leader of Quality Control Division, vice manager oftire crane o?ce of quality control division, manager of quality control division, vice general manager and general manager of quality inspectioncompany, vice director and vice chief engineer of quality safety o?ce, manager of quality safety division, supervisor and president assistant ofthe Company. Currently, he is the vice president and safety director of the Company.ShanJianguo
Born in 1964, male, bachelor, senior engineer. He successively served as the technician in Shanghai Port Machinery Manufacturing Plant, theengineer and chief engineer of ZPMC Machinery O?ce, general manager and vice chief engineer of No.4 design o?ce of design company, vicedirector and director of ZPMC Machinery O?ce, manager of budget assessment department and the dean of ZPMC Land-based Heavy IndustryResearch & Design Institute. Currently, he is the vice president of the Company.Zhang
Jian
Born in 1969, male, MBA, senior engineer. He successively served as the technician, production planner and assistant director of No. 2Panel beater of Shanghai Port Machinery Manufacturing Plant, director of gearbox branch of Shanghai Port Machinery Manufacturing Plant,vice director and member of the Party committee of Shanghai Port Machinery Manufacturing Plant, vice general manager of Shanghai PortMachinery Heavy Industry Co., Ltd, general manager and president assistant of ZPMC Operation O?ce. Currently, he is the vice president of theCompany.Fei Guo
Born in 1962, male, EMBA, professor-level senior engineer. He successively served as the engineer of Shanghai Port Machinery Plant, electricalengineer of the Technology Department, director of No. 5 Electrical O?ce, vice chief engineer, chief engineer, director of Development O?ceand vice president of ZPMC. Currently, he is the chief engineer of the Company.
LiRuixiang
Born in 1975, male, bachelor, senior economist. He successively served as the director of Technical Process Department, trainee managerof Manufacturing Department and manager of Quality Assurance Department of Zhangjiagang Base of Shanghai Port Machinery Plant;project leader, o?ce manager, vice director of Quality Safety O?ce, vice general manager and general manager of mechanical supportingbase, secretary of Party Branch, vice chief economist, general manager of budget assessment department, general manager of Material andEquipment Procurement Department and president assistant of ZPMC quality inspection company. Currently, he is the chief economist of theCompany.Sun Li
Born in 1972, male, EMBA, senior engineer. He successively served as the project leader and vice manager of Operation Department, vicedirector of Operation O?ce and director of O?-Shore O?ce, general manager assistant, vice president and director of the Company. Currently,he is the chief legal counsel, secretary of the board and chief compliance o?cer of the Company.ZhuLianyu
Born in 1970, male, Ph.D., professor-level senior engineer. He began his career in September 1992 and successively served as the engineer,equipment leader of overseas projects, vice chief of Marine Machine Department, manager of Enterprise Development Department of CCCCFirst Harbor Engineering Co., Ltd; the general manager of CCCC International Shipping Co., Ltd and the vice general manager of the EquipmentManufacturing Marine Heavy Industry Department of China Communications Construction Co., Ltd. He resigned as director and chairman of theboard of the Company on March 19, 2021.HuangQingfeng
Born in 1975, male, EMBA, senior engineer. He began his career in July 1996 and successively served as the chief of Quality InspectionDepartment, vice director of Quality Inspection No.2 Department, vice general manager of quality inspection company, vice general manager ofafter-sales service department, general manager of quality inspection company; vice director of O?-Shore O?ce, vice director and director ofQuality Safety O?ce, director of Product Service Center, president assistant, vice president and president of the Company. He resigned as thedirector and president of the Company on Feb. 26, 2021.
2020
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NameMain working experiencesZhangHongwen
Born in 1960, male, bachelor, senior engineer; engaged in work in August 1983. He successively served as the vice general manager of CHECInternational Engineering Branch, vice general manager of Overseas Division and manager of Integrated Department of CHEC Group, vicegeneral manager of Engineering Management Department and Operation & Management Department of China Communications ConstructionCo., Ltd, vice general manager and general manager of Capital Construction Department (Dredging Department) and the executive generalmanager and general manager of Port Dredging Business Department of CCCC, as well as the director, executive general manager, temporarymember of the Party committee and non-executive director of CCCC Dredging (Group) Co., Ltd. He resigned as the director of the Company onOct. 30, 2020.DaiWenkai
Born in 1967, male, master of physics, EMBA, senior engineer. He began his career in March 1993 and successively served as the director ofOperation Management O?ce and vice president of the Company. He resigned as the director and vice president of the Company on Sept. 4,2020.ZhangMinghai
Born in 1962, male, bachelor, professor-level senior engineer. He successively served as the engineer of Technology Division of Shanghai PortMachinery Plant; mechanical o?ce designer, vice manager and vice chief engineer of Shanghai Zhenhua Heavy Industries Co., Ltd., generalmanager of Shore Bridge No.1 Company of Mechanical O?ce, and general manager of Land-based Heavy Industry Co., Ltd. He resigned as thesupervisor 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 period1 Position at the shareholder entity
√Applicable □Not applicable
Name of in-service sta?
Name of shareholding entityPosition
Starting date oftenure
Expiration dateof tenureLiu Chengyun
China Communications ConstructionGroup Co., Ltd.
General manager assistantMarch 5, 2021Statement of the position held in shareholding entity2 Statement of the position held in other entities
√Applicable □Not applicable
Name of in-service sta?
Name of other entities
Position held in other
entities
Startingdate oftenure
Expirationdate oftenureZhao ZhanboSchool of Software, Peking UniversityProfessorJi LinhongDepartment of Mechanical Engineering, Tsinghua University
Professor and doctoralsupervisorYang Jun
Shanghai United Assets and Equity Exchange, Financial AssetsExchange, Shanghai International Economic and Trade ArbitrationCommission, Shanghai Arbitration Commission, Shanghai Court ofFinancial Arbitration, Chinese Domain Name Dispute SettlementCenter, Intellectual Property Association of China Law Society,Company Law Association of Shanghai Law Society, Shanghai Patent/Trademark/Copyright Association.
Assistant president,general manager,director, arbitrator,expert, directorBai Yunxia
School of Economics and Management of Tongji University, InvestmentCentre of Cheung Kong Graduate School of Business
Director of AccountingDepartment, researchscholarZhang HuaChina Europe International Business School
Researcher, lecturer,assistant professor andassociate professorShengLeiming
Shanghai Foreign Trade Law Firm, East China University of PoliticalScience and Law, Shanghai Zhongmao Law Firm, Guantao Law Firm.
Senior partner, lawyer,teacher, etc.Statement of the position held in other entities
4343
III. Remuneration of directors, supervisors and senior executives
√Applicable □Not applicable
Decision-making process for the remuneration of directors,supervisors and senior executives
In accordance with the regulations of Articles of Association, theremuneration of directors and supervisors are subject to the generalmeeting of shareholders and the remuneration of the senior executivesare assessed and approved by the chairman and president.Basis for deciding the remuneration of remuneration of directors,supervisors and senior executives
The basic salary plus performance bonus are assessed in combinationwith the quantitative index of production and operation, etc.Actual payout of remuneration for directors, supervisors andsenior executives
All in-service and resigned director, supervisor and senior executivesare paid by the Company within the reporting period.Total remuneration actually obtained by all directors, supervisorsand senior executives at the end of reporting period
RMB 12,055,600.00
IV. Change in directors, supervisors and senior executives
√Applicable □Not applicable
NamePostChangeReason of changeLiu ChengyunDirector, chairman of the board, general manager (president)ElectedJob adjustment
Zhu LianyuDirector, chairman of the boardResignedJob adjustmentHuang QingfengDirector, presidentResignedJob adjustmentZhang HongwenDirectorResignedAge reasonDai WenkaiDirector, vice presidentResignedIndividual reasonZhang MinghaiSupervisorResignedJob 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 subsidiaries1 Particulars about employeesNumber of in-service employees of the parent company3,109Number of in-service employees of the main subsidiaries5,593Total of in-service employees8,702Number of retired employees required to be paid by the parent company and its major subsidiaries
SpecialtiesCategoryNumber of sta?Production sta?3,258Sales sta?277Technical sta?4,247Financial sta?163Administrative sta?757Total 8,702
Education backgroundEducation levelNumber (person)Doctor18Master707Undergraduate4,220Junior College2,001Technical secondary school567High school and below1,189Total8,702
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4444
2 Remuneration policies
√Applicable □Not applicable
In line with the Company’s development strategy, it continuously perfected the remuneration distribution incentivesystem, perfected the performance assessment system and established and improved the performance assessment systembased on the di?erent properties and characteristics of each entity and division; promoted the salary incentive system closelylinking the performance distribution with the unit or division performance, value contribution, industrial characteristics, growthphase and similar factors, and comprehensively linking the sta? performance with position duty and value contribution, andthus 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 sta? training system withsystematic, directional and continuous features. The Company sets up the all-staff annual educational and training planat the beginning of each year and implements it according to the plan to improve the business skill level and professionalquality of sta? at various levels.4 Labor outsourcing
√Applicable □Not applicable
Total of labor outsourcing hours7,310,088 hoursTotal of labor outsourcing remunerationRMB 392,856,400.00VII. Others
□Applicable √Not applicable
4545
Section IXCorporate 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, SecuritiesLaw, Stock Listing Rules, Articles of Association and the legal requirements of China Securities Regulatory Commissionto standardize the Company’s daily operation, further established and improved the internal control system, improvedthe 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 theconstruction of legal person governance structure, and gradually established a modern enterprise system, earnestlyprotected the legal rights and interests of the Company and all the shareholders, ensuring the sustainable and stabledevelopment.After self-inspection, the sta?s who know the insider information didn’t trade the stocks of the Company before majorprice information is disclosed. There is no difference between the company governance and the regulations of ChinaSecurities Regulatory Commission.Whether there is important di?erence between corporate governance and the requirements of relevant regulations ofChina Securities Regulatory Commission; if any, please give the reason.
□Applicable √Not applicable
II. Brief introduction to the general meeting of shareholders
Session of meetingConvening date
Query index of the website specied for
publishing resolutions
Date of disclosure forpublishing resolutionsGeneral Meeting of Shareholdersin 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 directors1 Attendance of the directors at the board meetings and the general meeting of shareholders
Director
Name
Independentdirector ornot
Attendance at Board Meetings
Attendanceat the generalmeeting ofshareholdersTimes ofmeetingsshould beattended inthis year
Times ofpersonalattendance
Times ofattendance bytelecommunication
Times ofattendancethrough aproxy
Times ofabsence
Personalabsencefor twoconsecutivetimes
Times ofattendance inthe generalmeeting ofshareholderZhu LianyuNo55500No1HuangQingfeng
No55500No1ZhangHongwen
No44400No0Liu QizhongNo55500No1Dai WenkaiNo 44400No1Zhu XiaohuaiNo 55500No1ShengLeiming
Yes 55500No1Zhang HuaYes 55500No1Yang JunYes 55500No1Zhao ZhanboYes55500No0
2020
4646
Director
Name
Independent
director or
not
Attendance at Board Meetings
Attendanceat the general
meeting ofshareholdersTimes ofmeetingsshould beattended inthis year
Times ofpersonalattendance
Times ofattendance bytelecommunication
Times ofattendancethrough a
proxy
Times ofabsence
Personalabsencefor twoconsecutivetimes
Times ofattendance inthe generalmeeting ofshareholderJi LinhongYes55500No0Bai YunxiaYes55500No0
Explanations for personal absence from the meeting for two consecutive times
□Applicable √Not applicable
Times of the board meetings convened in current year5Including: times of on-site meetings0
Times of meetings convened through telecommunication5Times of meetings convened on-site and through telecommunication0
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 ofDirectors while performing their duties in the reporting period, where there is any objection, the details shall bedisclosed
□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 independenceand keep independent operation capacity with regard to business, personnel, assets, institution, nance, 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 seniorexecutives during the reporting period
√Applicable □Not applicable
The Company appoints the directors, supervisors and senior executives in accordance with the provisions of CompanyLaw and the Articles of Association, has built up a preliminary cultivation, selection, supervision, assessment, rewardand punishment, constraint system for the Company’s senior executives suitable for the actual situation. The Companyformulated corresponding administrative methods for senior executives. According to the production and development needof the Company, the senior executives are appointed, resigned and assessed following the principles of “being from top tobottom integrating the virtue and talent”, and are subject to annual appraisal by the Company according to the due diligenceand job performance. The Company will gradually improve the existing performance evaluation system and salary system,and promote medium and long term incentive system for all senior executives and the core technical personnel of theCompany, to continue to stimulate the enthusiasm of the senior executives, to create new achievements, and to ensure thebenet maximization and standard operation of the Company.
4747
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 e?ectiveness of the internalcontrol of the nancial statement as of December 31, 2020 and issued a standard internal control audit report with cleanopinion (see the attachment to the announcement for details).Description of the important deciencies 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 e?ectiveness of the internalcontrol of the nancial statement as of December 31, 2020 and issued a standard internal control audit report with cleanopinion (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 opinionX.Others
□Applicable √Not applicable
Section XRelated Information on Corporate Bonds
□Applicable √Not applicable
2020
4848
Section XIFinancial ReportI. Auditors’ Report
√Applicable □Not applicable
Auditors' Report
Ernst & Young (2021) SZ No.61249778_B01Shanghai Zhenhua Heavy Industries Co., Ltd.
All shareholders of Shanghai Zhenhua Heavy Industries Co., Ltd.:
1 Opinion
We have audited the nancial statements of Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to asthe "Company"), which comprise the consolidated balance sheet and the Company's balance sheet as at December 31,2020, the consolidated income statement and the Company's income statement, the consolidated statement of changes inshareholders’ equity and the Company's statement of changes in owners’ equity and the consolidated statement of cashows and the Company's statement of cash ows for the year then ended as well as the notes to the nancial statements.In our opinion, the nancial statements of the Company attached are prepared, in all material respects, in accordancewith the Accounting Standards for Business Enterprises, and fairly present the consolidated financial position and theCompany's financial position as at December 31, 2020 and the consolidated operating results and cash flows and theCompany's operating results and cash ows for the year then ended.2 Basis for Our OpinionsWe conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Ourresponsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the FinancialStatements section of this auditors' report. According to the Code of Ethics for Certied Public Accountants of China, we areindependent of the Company, and we have fullled other responsibilities in the aspect of code of ethics. We believe that theaudit evidence we have obtained is su?cient and appropriate to provide a basis for our opinion.3 Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most signicance in our audit of thefinancial statements for the current period. The response to these matters is based on the overall audit of the financialstatements and the formation of audit opinions. We do not express our opinions on these matters separately. The followingdescription of how our audit addressed the key audit matter is also against this background.We have fullled the responsibilities stated in “Responsibilities of Certied Public Accountant for Auditing of FinancialStatement” in this report, including the responsibilities related to these key auditing matters. Correspondingly, our auditingwork includes the implementation of the auditing procedure designed for dealing with the great misstatement risks of thefinancial statement to be evaluated. The results from the implementation of the auditing procedure by us, including theprocedure to be implemented for the following key auditing matters, o?ers a foundation for releasing the auditing opinions ofthe nancial statements.
4949
Key Audit Matters:How our audit addressed the key audit matter:
1. Inventory depreciation reserves
Shanghai Zhenhua Heavy Industries Co., Ltd. is mainly engaged inmanufacturing the port container crane; in addition, it is also engaged in themanufacture of bulk handling machine, o?shore heavy-duty machine and large-sized steel structure. Its inventories mainly include engineering raw materials,outsourcing parts and components, products in the process and inventorygoods. Since the production cycle of the products is relatively long, the netrealizable value of the related inventory may uctuate with the change in themarket demand, resulting in the inventory depreciation risks. The managementsets aside the inventory depreciation reserves according to the balance ofthe inventory cost and the net realizable value. The net realizable value isdetermined as per the estimated selling price of the inventory minus the cost,the estimated selling expenses and the related taxes that may occur in thecompletion on the assumption that the management layer adopts a certainestimate and hypothesis in determining the net realizable value. In case ofdi?erence between the actual gure and the originally estimated gure, therelated balance will a?ect the book value of the inventory and the depreciationloss in the estimated uctuation.As of December 31, 2020, in the consolidated nancial statements, the balanceof inventories was RMB 23.32 billion and the reserve for inventory depreciationwas RMB 990 million; in the nancial statements of the Company, the balanceof inventories was RMB 19.95 billion and the reserve for inventory depreciationwas RMB 1 billion.The accounting policy and other disclosures regarding the inventory are statedin Note V (15), Note V (43) and Note VII (9) of the nancial statement.
Our procedure mainly included knowing and testingthe validity of the control related to the provision ofinventory depreciation reserves and the method ofcalculating the net realizable value of the Group. Wealso implemented the related auditing procedures overthe inventory such as supervision of inventory to verifywhether the management had marked the inventorywith slow turnover and defectives and taken into fullaccount in provision of inventory depreciation reserves.In addition, we obtained the computation sheet ofprovision of inventory depreciation reserves from themanagement, rechecked the calculation method andresult. As to the key elements taken into considerationby the management in calculating the net realizablevalue, including the estimated selling price and thecost that may occur till completion, we evaluated thehypothesis and the estimates through analyzing therelated historical data and comparing the after-datedata of Shanghai Zhenhua Heavy Industries Co.,Ltd. We also rechecked the disclosure of inventorydepreciation reserves in nancial statements.
2.Provision for bad debts of accounts receivable
The accounts receivable of Shanghai Zhenhua Heavy Industries Co., Ltd. ismainly from the business contract on port machine and ocean engineeringmanufacturing. Since it involves large contracted value, long constructionperiod, relatively complicated technical parameters, the implementation of thecontract may be a?ected by the periodicity of the economic environment. Theaccounts receivable has certain risk in the recovery in case of any disputein contract or the industry is in recession. The provisions for bad debts ofaccounts receivable are recognized on the basis of estimated credit losses,involving major judgment and estimates. The management of analyzedthe nancial position of counter parties, guarantee acquired for accountsreceivable, historical repayment records of accounts receivable, as well as thecredit rating and future economic situations of counter parties for evaluating thecredit risk of accounts receivable.As of December 31, 2020, in the consolidated nancial statements, the balanceof accounts receivable was RMB 9.10 billion and the provision for bad debtsof accounts receivable was RMB 1.87 billion; in the nancial statements of theCompany, the balance of accounts receivable was RMB 17.14 billion and theprovision for bad debts of accounts receivable was RMB 1.80 billion.The accounting policy and other disclosures regarding the provision for baddebts of accounts receivable are stated in Note V (12), Note V (43), Note VII (5)and Note XVII (1) of the nancial statements.
Our procedure mainly included the evaluation ofthe accounting estimate relating to the depreciationreserves, such as the nancial status and creditrating of the counterpart; checked the account ageof accounts receivable and historical repaymentrecord and evaluated whether the nancial problemsof the counter party had e?ects on the recovery ofthe accounts receivable; for the accounts receivableevaluated based on the portfolio, we rechecked themanagement's setting of credit risk features portfolio,checked the key information such as account ageand credit record of each portfolio by sampling, andrechecked the basis of management's evaluation ofcredit risk and expected credit loss amount basedon the credit risk features portfolio, including testinghistorical default data and checking the actual creditloss in the current year; rechecked the disclosure ofbad debt provision for accounts receivable in nancialstatements.
2020
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Key Audit Matters:How our audit addressed the key audit matter:
3. Revenue recognition
Most of the revenue of Shanghai Zhenhua Heavy Industries Co., Ltd. comesfrom the one of the construction contracts on the large-sized port equipment,heavy equipment, steel structure and construction projects customized by thecustomer.Since January 1, 2020, the new revenue standard has been applied, and themanagement has read and analyzed the contracts of various revenue typesaccording to the requirements of ve step method. The performance obligationsincluded in the manufacturing contract on large-sized port equipment, heavyequipment and some steel structure products did not meet the conditions ofperformance obligations within a certain period of time, therefore, based oncomprehensive consideration of various factors, the revenue was recognizedat the time of control transfer of relevant products.In 2020, in the consolidated nancial statements, the operating revenue wasRMB 22.66 billion; in the nancial statements of the Company, the operatingrevenue was RMB 21.79 billion.The accounting policy and other disclosures regarding the operating revenueare stated in Note V (38), Note V (43), Note V (44), Note VII (74) and Note XVII
(4) of the nancial statements.
Our procedure mainly included evaluating and testingthe management's internal control related to revenuerecognition. Selected the sales contract with signicantamount, checked the important contract terms relatedto revenue recognition according to the ve steprequirements of the new revenue standard, andevaluated the management’s accounting judgmentand estimate on performance obligations, revenuerecognition amount (including variable consideration)and the recognition at a certain time point or withina period of time. Through selecting the samples, weveried whether the contract revenue recognized in theyear conformed to the revenue recognition conditions;implemented the cuto? check procedure to validatethe revenue was conrmed in the proper accountingperiod. For the revenue recognized in a certain periodof time, we evaluated the judgment and estimate of thetotal contract cost and total processing amount madeby the management, and made sampling to calculateand check the income determined by the occurredcontract cost and the expected total contract costagain; implemented the analysis procedure againstthe changes in revenue and gross prot of variousbusinesses; rechecked the disclosure of revenuerecognition in nancial statements.4 Other InformationThe management of Shanghai Zhenhua Heavy Industries Co., Ltd. shall be responsible for other information. The otherinformation comprises information of the annual report, but excludes the nancial statements and our auditors' report.Our opinion on the nancial statements does not cover the other information, and we do not and will not express anyform of assurance conclusion thereon.In connection with our audit of the financial statements, our responsibility is to read the other information identifiedabove and, in doing so, consider whether the other information is materially inconsistent with the nancial statements or ourknowledge obtained in the audit, or otherwise appears to be materially misstated.If, based on the work we have performed on the other information that we obtained prior to the date of this auditors'report, we conclude that there is a material misstatement of this other information, we are required to report that fact. In thisregard, we have nothing to report.5 Responsibilities of the Management and Those Charged with Governance for the Financial StatementsThe Management is responsible for preparing the financial statements in accordance with the requirements ofAccounting Standards for Business Enterprises to achieve a fair presentation, and for designing, implementing andmaintaining internal control that is necessary to ensure that the nancial statements are free from material misstatements,whether due to frauds or errors.
In preparing the financial statements, the Management is responsible for assessing the Company’s going-concernability, disclosing the matters related to going concern (if applicable) and using the going-concern assumption, unless theManagement either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company's nancial reporting process.6 Auditors' Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the nancial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonableassurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standardswill always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are consideredmaterial if, individually or in the aggregate, they could reasonably be expected to inuence the economic decisions of userstaken on the basis of these nancial statements.
5151
2020During the process of an audit conducted in accordance with audit standards, we exercise professional judgment andmaintain professional scepticism throughout the audit. Meanwhile, we also implement the following work:
(1)Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is su?cient and appropriateto provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than forone resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override ofinternal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3)Evaluate the appropriateness of accounting policies used by and the reasonableness of accounting estimates and
related disclosures made by the management.
(4)Conclude on the appropriateness of the Management's use of the going concern basis of accounting. Based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast signicantdoubt on the ability of Shanghai Zhenhua Heavy Industries Co., Ltd. to continue as a going concern. If we conclude that amaterial uncertainty exists, we are required to, in our auditors' report, draw attention of the users of statements to the relateddisclosures in the nancial statements; if such disclosures are inadequate, we should modify our opinion. Our conclusionsare based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions maycause Shanghai Zhenhua Heavy Industries Co., Ltd. to cease to continue as a going concern.
(5)Evaluate the overall presentation, structure and content (including the disclosures) of the nancial statements, and
evaluate whether the nancial statements represent the underlying transactions and events in a manner that achieves fairpresentation.
(6)Obtain su?cient appropriate audit evidence regarding the nancial information of the entities or business activities
within the Company to express an opinion on the nancial statements. We are responsible for the direction, supervision andperformance of the group audit, and bear full responsibility for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit, signicantaudit ndings and other matters, including any signicant deciencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them in regard to all relationships and other matters thatmay reasonably be thought to a?ect our independence, and related safeguards (if applicable).From the matters communicated with those charged with governance, we determine those matters that were of mostsignicance in the audit of the nancial statements of the current period and are therefore the key audit matters. We describethese matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated in our report because the adverseconsequences of doing so would reasonably be expected to outweigh the public interest benets of such communication.
Ernst & Young LLP.
(Special General Partnership)
Beijing, China
Certied Public Accountant of China: Liu Wei(Engagement Partner)Certied Public Accountant of China:Gu Chengli
March 30, 2021
5252
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Balance Sheet
Unity: Yuan Currency: CNYItemNoteAs at December 31, 2020As at December 31, 2019Current assets:
Monetary fundsVII (1)2,948,074,7363,310,297,451Settlement provisions-Lending funds-Held-for-trading nancial assetsVII (2)1,601,623,6501,739,792,062Derivative nancial assets-Notes receivableVII (4)753,0005,650,000Accounts receivableVII (5)7,227,065,2554,966,175,528Receivables nancingVII (6)362,006,319406,408,604Advances to suppliersVII (7)767,426,147935,878,777Premiums receivable-Reinsurance accounts receivable-Reserves for reinsurance contract receivable-Other receivablesVII (8)913,410,1631,176,561,508Including: Interest receivable-
Dividend receivable1,072,390Financial assets purchased under agreements to resell-InventoriesVII (9)22,325,839,1168,561,251,580Contract assetsVII (10)2,063,296,890-Outstanding payments for construction completed12,434,158,624Assets held for sale-Non-current assets due within one yearVII (12)1,884,370,4441,313,203,581Other current assetsVII (13)708,484,102720,183,574Total current assets40,802,349,82235,569,561,289Non-current assets:
Disbursement of loans and advancesDebt investmentOther debt investmentsLong-term receivablesVII (16)5,077,114,3425,227,728,420Long-term equity investmentsVII (17)3,042,232,8842,873,673,745Other equity instrument investmentVII (18)61,505,75161,981,268Other non-current nancial assetsVII (19)330,094,057-Investment propertiesVII (20)467,607,519418,425,533Fixed assetsVII (21)19,820,601,39721,454,967,299Construction in progressVII (22)4,520,147,8194,380,489,888Productive biological assets-Oil and gas assets-Right-of-use assets-Intangible assetsVII (26)3,347,450,7143,506,541,366Development expenditures-GoodwillVII (28)261,072,463268,434,934Long-term deferred expensesVII (29)502,8111,444,636
II. Financial Report
As at December 31, 2020
5353
2020
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Balance Sheet(Continued)
Unity: Yuan Currency: CNYAs at December 31, 2020ItemNoteAs at December 31, 2020As at December 31, 2019Deferred income tax assetsVII (30)752,960,672486,197,635Other non-current assetsVII (31)837,004,289161,337,287Total non-current assets38,518,294,71838,841,222,011Total assets79,320,644,54074,410,783,300Current liabilities:
Short-term borrowingsVII (32)17,795,076,56522,001,319,380Borrowings from the Central Bank-Borrowing funds-Held-for-trading nancial liabilitiesVII (33)458,8827,312,741Derivative nancial liabilities-Notes payableVII (35)3,600,725,8923,420,945,451Accounts payableVII (36)7,773,903,1477,869,378,365Advances from customersVII (37)4,893,675822,987,986Contract liabilitiesVII (38)11,195,309,083Financial assets sold for repurchase-Deposits from customers and interbank-Acting trading securities-Acting underwriting securities-Amount settled for uncompleted work 1,679,950,879Payroll payableVII (39)188,799,969329,978,281Tax payableVII (40)160,782,931144,506,742Other payablesVII (41)481,065,700711,389,996Including: Interest payable-
Dividends payable352,59831,701,965Fees and commissions payable-Dividend payable for reinsuranceLiabilities held for saleNon-current liabilities due within a yearVII (43)1,374,465,3197,287,484,513Other current liabilities-Total current liabilities42,575,481,16344,275,254,334Non-current liabilities:
Reserve fund for insurance contracts-Long-term borrowingsVII (45)16,850,299,7428,413,339,986Bonds payable-Including: preferred stock-
Perpetual bond-Lease liabilities-Long-term payablesVII (48)1,632,757,9321,741,945,636Long-term payroll payable-Estimated liabilitiesVII (50)261,072,318484,000,772Deferred incomeVII (51)388,756,001458,722,579Deferred income tax liabilities106,666,67189,856,727
5454
ItemNoteAs at December 31, 2020As at December 31, 2019Other non-current liabilitiesVII (52)430,372,502376,626,821Total non-current liabilities19,669,925,16611,564,492,521Total liabilities62,245,406,32955,839,746,855Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)VII (53)5,268,353,5015,268,353,501Other equity instrumentsVII (54)500,000,000-Including: preferred stock-
Perpetual bond500,000,000-Capital reservesVII (55)4,834,854,3324,834,854,332Less: treasury stock-Other comprehensive incomeVII (57)-62,927,39823,530,451Special reservesVII (58)1,936,1533,615,638Surplus reservesVII (59)1,651,418,5471,761,198,709General risk preparation-Undistributed protsVII (60)2,377,187,0053,651,851,383Total owners' equities attributable to the owners of parentcompany
14,570,822,14015,543,404,014Minority equity2,504,416,0713,027,632,431Total owners’ equity (or shareholders' equity)17,075,238,21118,571,036,445Total liabilities and owners’ equity (or shareholders' equity)79,320,644,54074,410,783,300
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Balance Sheet(Continued)
Unity: Yuan Currency: CNYAs at December 31, 2020
Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
5555
2020
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Balance Sheet of the Parent Company
Unity: Yuan Currency: CNYItemNote As at December 31, 2020As at December 31, 2019Current assets:
Monetary funds1,902,199,0662,009,711,462Held-for-trading nancial assets907,154,115717,766,887Derivative nancial assetsNotes receivable753,0005,650,000Accounts receivableXVII (1)15,333,326,22411,188,977,446Receivables nancing306,365,354372,373,708Advances to suppliers4,628,860,0612,516,366,730Other receivablesXVII (2)5,505,896,4137,850,320,715Including: Interest receivable-
Dividend receivable-Inventories18,950,680,0708,605,357,557Contract assets1,133,865,802Outstanding payments for construction completed7,399,709,689Assets held for saleNon-current assets due within one year16,068,80016,068,800Other current assets320,289,945242,069,645Total current assets49,005,458,85040,924,372,639Non-current assets:
Debt investmentOther debt investmentsLong-term receivables274,746,933349,516,318Long-term equity investmentsXVII (3)8,725,608,0538,748,485,729Other equity instrument investment61,505,75161,981,268Other non-current nancial assets330,094,057-Investment properties467,607,519418,425,533Fixed assets4,016,049,5914,484,852,694Construction in progress659,009,550352,334,608Productive biological assetsOil and gas assetsRight-of-use assetsIntangible assets1,507,604,3471,537,053,308Development expendituresGoodwillLong-term deferred expensesDeferred income tax assets717,095,880461,638,248Other non-current assets533,182,276-Total non-current assets17,292,503,95716,414,287,706Total assets66,297,962,80757,338,660,345Current liabilities:
Short-term borrowings14,351,318,05016,511,846,099Held-for-trading nancial liabilitiesDerivative nancial liabilitiesNotes payable3,897,225,8924,115,677,123
As at December 31, 2020
5656
ItemNote As at December 31, 2020As at December 31, 2019Accounts payable5,364,410,4464,097,874,390Advances from customers490,409,652Contract liabilities10,446,873,026Amount settled for uncompleted work2,053,025,876Payroll payable173,661,671312,443,598Tax payable26,049,45724,536,759Other payables1,083,925,5561,223,412,212Including: Interest payable-
Dividends payable352,598352,598Liabilities held for sale-Non-current liabilities due within one year709,198,1485,454,698,322Other current liabilitiesTotal current liabilities36,052,662,24634,283,924,031Non-current liabilities:
Long-term borrowings14,777,075,3346,446,433,319Bonds payable-Including: preferred stock-
Perpetual bond-Lease liabilities-Long-term payables-Long-term payroll payable-Estimated liabilities253,696,912470,724,247Deferred income302,910,467329,345,661Deferred income tax liabilities-Other non-current liabilities16,723,79421,272,925Total non-current liabilities15,350,406,5077,267,776,152Total liabilities51,403,068,75341,551,700,183Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)5,268,353,5015,268,353,501Other equity instruments500,000,000.00-Including: preferred stock-
Perpetual bond500,000,000.00-Capital reserves4,914,468,6834,914,468,683Less: treasury stock-Other comprehensive income-22,498,7048,348,107Special reserves-Surplus reserves1,650,910,2741,760,690,436Undistributed prots2,583,660,3003,835,099,435Total owners’ equity (or shareholders' equity)14,894,894,05415,786,960,162Total liabilities and owners’ equity (or shareholders' equity)66,297,962,80757,338,660,345
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Balance Sheet of the Parent Company(Continued)
Unity: Yuan Currency: CNYAs at December 31, 2020
Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
5757
2020
ItemNote20202019I. Total operating revenueVII (61)22,655,141,65224,595,587,883Including: Operating revenue22,655,141,65224,595,587,883
Interest income-Premiums earned-Fee and commission income-II. Total operating cost22,418,218,00424,299,890,918Including: operating costsVII (61)19,413,265,25420,590,531,322
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 surchargesVII (62)106,278,271108,028,681Selling and distribution expensesVII (63)105,763,639122,517,036General and administrative expensesVII (64)937,700,8391,095,131,287Research and development expendituresVII (65)737,468,137887,096,178Financial expensesVII (66)1,117,741,8641,496,586,414Including: interest expenses1,343,245,0611,702,292,369
Interest income369,113,644331,452,183Plus: other incomesVII (67)93,228,05188,459,588Income from investment (loss expressed with “-”)VII (68)413,517,783174,600,552Including: Income from investment of joint venture and cooperative enterprise138,892,946110,724,316
Income from derecognition of nancial assets measured at amortized
costExchange gain (loss expressed with “-”)Net exposure hedging gain (loss expressed with “-”)Income from fair value changes (loss expressed with “-”)VII (70)94,172,45688,019,844Credit impairment losses (loss expressed with “-”)VII (71)-138,083,561-38,761,593Assets impairment losses (loss expressed with “-”)VII (72)-213,647,223-52,494,284Income from disposal of assets (loss expressed with “-”)VII (73)6,755,68849,091,913III. Operating prots (loss expressed with “-”)492,866,842604,612,985
Plus: non-operating incomeVII (74)17,337,49916,462,710Less: non-operating expenditureVII (75)7,997,91030,203,498IV. Total prots (total loss expressed with “-”)502,206,431590,872,197
Less: income tax expensesVII (76)86,071,00093,750,584V. Net prots (net loss expressed with “-”)416,135,431497,121,613
(I) Classied by business continuity
1. Net prots from ongoing operation (net loss expressed with “-”)416,135,431497,121,613
2. Net prots from discontinuing operation (net loss expressed with “-”)
(II) Classied by ownership
1. Net prot attributable to the shareholders of parent company (net loss expressed with “-”)422,240,299514,930,143
2. Minority interests (net loss expressed with “-”)-6,104,868-17,808,530
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Income Statement
Unity: Yuan Currency: CNYJanuary to December in 2020
5858
ItemNote20202019VI. Net of tax of other comprehensive income-109,245,37622,021,165(I) Net amount of after-tax other comprehensive income attributable to the owners of theparent company
-86,457,84915,806,812
1. Other comprehensive income that can't be reclassied into prot and loss-404,1895,656,529
(1) Remeasure the variation of net indebtedness or net asset of dened benet plan-
(2) Other comprehensive income that can't be reclassied into prot and loss in the invested
enterprise under equity method
-
(3) Fair value change of other equity instrument investments-404,1895,656,529
(4) Fair value change of enterprise credit risks-
2. Other comprehensive income that will be reclassied into prot and loss-86,053,66010,150,283
(1) Other comprehensive income that will be reclassied into prot and loss in the invested
enterprise under equity method
-28,663,890-2,004,706
(2) Fair value change of other debt investments
(3) Amount of nancial assets reclassied into other comprehensive income
(4) Provision for credit impairment of other debt investments
(5) Cash ow hedging reserve
(6) Translation reserve-57,389,77012,154,989
(7) Others-(II) Net of tax of other comprehensive income attributable to the minority shareholders-22,787,5276,214,353VII. Total comprehensive income306,890,055519,142,778(I) Total comprehensive income belonging to parent company335,782,450530,736,955(II) Total comprehensive income belonging to minority shareholders-28,892,395-11,594,177VIII. Earnings per share:
(I) Basic earnings per share (Yuan/share)0.080.10(II) Diluted earnings per share (Yuan/share)0.080.10
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Income Statement(Continued)
Unity: Yuan Currency: CNYJanuary to December in 2020
In case of business combination under common control in current period, the net prot realized by the combined partybefore combination was RMB 0, and the net prot realized by the combined party in the previous period was RMB 0.Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
5959
2020
ItemNote20202019I. Operating revenueXVII (4)21,792,572,07725,040,304,430Less: operating costsXVII (4)19,380,258,84322,072,761,466Taxes and surcharges45,189,85846,993,017Selling and distribution expenses85,994,61395,598,294General and administrative expenses434,987,831443,039,394Research and development expenditures588,658,451733,613,874Financial expenses1,547,343,7951,196,403,287Including: interest expenses1,050,532,1281,287,736,007
Interest income25,876,90725,417,765Plus: other incomes54,518,75166,222,311Income from investment (loss expressed with “-”)XVII (5)486,388,303107,761,737Including: Income from investment of joint venture and cooperative enterprise134,225,470106,972,779
Income from derecognition of nancial assets measured at amortized costNet exposure hedging gain (loss expressed with “-”)Income from fair value changes (loss expressed with “-”)403,444,667151,121,780Credit impairment losses (loss expressed with “-”)-122,341,214-16,036,863Assets impairment losses (loss expressed with “-”)-207,234,914-59,200,823Income from disposal of assets (loss expressed with “-”)6,340,0024,536,497II. Operating prots (loss expressed with “-”)331,254,281706,299,737Plus: non-operating income5,366,0695,369,991Less: non-operating expenditure3,261,2146,293,977III. Total prots (total loss expressed with “-”)333,359,136705,375,751Less: income tax expenses-4,564,69661,014,198IV. Net prots (loss expressed with “-”)337,923,832644,361,553
(I) Net prots from ongoing operation (net loss expressed with “-”)337,923,832644,361,553(II) Net prots from discontinuing operation (net loss expressed with “-”)-V. Net of tax of other comprehensive income-30,846,8114,035,024(I) Other comprehensive income that can't be reclassied into prot and loss-404,1895,656,529
1. Remeasure the variation of net indebtedness or net asset of dened benet plan-
2. Other comprehensive income that can't be reclassied into prot and loss in the invested
enterprise under equity method
-
3. Fair value change of other equity instrument investments-404,1895,656,529
4. Fair value change of enterprise credit risks-(II) Other comprehensive income that will be reclassied into prot and loss-30,442,622-1,621,505
1. Other comprehensive income that will be reclassied into prot and loss in the invested
enterprise under equity method
-28,663,890-2,004,706
2. Fair value change of other debt investments
3. Amount of nancial assets reclassied into other comprehensive income
4. Provision for credit impairment of other debt investments
5. Cash ow hedging reserve
6. Translation reserve-1,778,732383,201
7. Others-VI. Total comprehensive income307,077,021648,396,577VII. Earnings per share:
(I) Basic earnings per share (Yuan/share)
(II) Diluted earnings per share (Yuan/share)
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Income Statement of Parent Company
Unity: Yuan Currency: CNYJanuary to December in 2020
Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
6060
ItemNote20202019I. Cash ow from operating activities:
Cash from selling commodities or o?ering labor24,070,729,58623,025,755,641Net increase of customer deposit and deposit from other banks-Net increase of borrowings from central bank-Net increase of borrowing funds from other nancial 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 levies851,809,5531,271,698,523Other cash received related to operating activities338,290,726329,767,258Subtotal cash inows from operating activities25,260,829,86524,627,221,422Cash paid for goods purchased and services received21,342,869,98219,942,201,097Net increase of customer loans and advancesNet increase of amount due from central bank and interbankCash paid for original insurance contract claims paymentNet increase of lending fundsCash paid for interest, handling charges and commissionsCash paid for policy dividendCash paid to and for employees2,178,947,4682,190,735,091Taxes and fees paid326,093,816296,562,379Other cash paid related to operating activities593,529,579907,509,746Subtotal cash outows from operating activities24,441,440,84523,337,008,313Net cash ows from operating activities819,389,0201,290,213,109II. Cash ows from investment activities:
Cash from investment withdrawal209,790,00050,000,000Cash from investment income267,656,68573,626,236Net cash received from disposal of xed assets, intangible assets and other long-term assets20,727,181283,066,093Net cash from disposal of subsidiaries and other business units-Other cash received related to investment activities337,058,520267,388,460Subtotal cash inows from investment activities835,232,386674,080,789Cash paid for purchase of xed assets, intangible assets and other long-term assets1,638,904,4371,735,742,239Cash paid for investments134,489,526485,500,000Net increase in hypothecated loan-Net cash paid for obtaining subsidiaries and other business units-Other cash paid related to investment activities266,251,559-Subtotal cash outows from investment activities2,039,645,5222,221,242,239Net cash ow from investment activities-1,204,413,136-1,547,161,450III. Cash ows from nancing activities:
Cash from absorption of investments379,445,000808,250,000
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Cash Flows
Unity: Yuan Currency: CNYJanuary to December in 2020
6161
2020
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Cash Flows(Continued)
Unity: Yuan Currency: CNYJanuary to December in 2020ItemNote20202019Including: cash received from subsidies’ absorption of minority shareholders’ investment379,445,000808,250,000Cash received from issuance of other equity instruments500,000,000Cash received from borrowings41,091,924,77231,773,610,203Other cash received related to nancing activities698,202,619819,334,975Subtotal cash inows from nancing activities42,669,572,39133,401,195,178Cash repayments of amounts borrowed39,243,737,05629,962,425,560Cash paid for distribution of dividends, prots or interest expenses1,666,808,6252,053,070,224Including: dividends and prots paid by subsidiaries to minority shareholders46,431,030973,150Other cash paid related to nancing activities1,409,615,7621,243,765,574Subtotal cash outows from nancing activities42,320,161,44333,259,261,358Net cash ows from nancing activities349,410,948141,933,820IV. Impact of exchange rate movements on cash and cash equivalents-134,669,46834,052,125V. Net increase of cash and cash equivalents-170,282,636-80,962,396
Plus: beginning balance of cash and cash equivalents3,068,024,9763,148,987,372VI. Ending balance of cash and cash equivalents2,897,742,3403,068,024,976Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
6262
ItemNote20202019I. Cash ow from operating activities:
Cash from selling commodities or o?ering labor21,198,017,15420,652,573,566Refund of tax and levies824,627,0081,240,029,186Other cash received related to operating activities272,781,596311,770,463Subtotal cash inows from operating activities22,295,425,75822,204,373,215Cash paid for goods purchased and services received20,992,122,51717,781,170,677Cash paid to and for employees1,113,852,1521,045,121,920Taxes and fees paid71,734,72374,252,976Other cash paid related to operating activities530,324,494694,695,689Subtotal cash outows from operating activities22,708,033,88619,595,241,262Net cash ows from operating activities-412,608,1282,609,131,953II. Cash ows from investment activities:
Cash from investment withdrawal540,351,396579,983Cash from investment income289,106,95310,538,958Net cash received from disposal of xed assets, intangible assets and other long-term assets13,953,97059,069,806Net cash from disposal of subsidiaries and other business units-Other cash received related to investment activities-9,674,112Subtotal cash inows from investment activities843,412,31979,862,859Cash paid for purchase of xed assets, intangible assets and other long-term assets464,585,090121,396,662Cash paid for investments471,062,850453,354,150Net cash paid for obtaining subsidiaries and other business units-Other cash paid related to investment activities-Subtotal cash outows from investment activities935,647,940574,750,812Net cash ow from investment activities-92,235,621-494,887,953III. Cash ows from nancing activities:
Cash from absorption of investments-Cash received from issuance of other equity instruments500,000,000Cash received from borrowings34,915,443,95523,196,312,114Other cash received related to nancing activities-Subtotal cash inows from nancing activities35,415,443,95523,196,312,114Cash repayments of amounts borrowed33,153,717,31723,435,344,092Cash paid for distribution of dividends, prots or interest expenses1,409,748,7441,641,001,571Other cash paid related to nancing activities203,727,816407,455,030Subtotal cash outows from nancing activities34,767,193,87725,483,800,693Net cash ows from nancing activities648,250,078-2,287,488,579IV. Impact of exchange rate movements on cash and cash equivalents-58,610,46912,864,249V. Net increase of cash and cash equivalents84,795,860-160,380,330
Plus: beginning balance of cash and cash equivalents1,770,070,8101,930,451,140VI. Ending balance of cash and cash equivalents1,854,866,6701,770,070,810
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Statement of Cash Flows of the Parent Company
Unity: Yuan Currency: CNYJanuary to December in 2020
Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
6363
2020
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Changes in Owners’ Equity
Unity: Yuan Currency: CNY
January to December in 2020
Item
2020
Equity attributable to the owners of the parent company
Minority
equityTotal owners’equity
Paid-in capital
(or share
capital)Other equity instruments
CapitalreservesLess: treasury
stockOthercomprehensive
incomeSpecial
reservesSurplusreservesGeneral riskpreparationUndistributedprotsOthersSub-total
Preferredstock
Perpetualbond
Others
I. Balance at the end of the last year5,268,353,5014,834,854,33223,530,4513,615,6381,761,198,7093,651,851,38315,543,404,0143,027,632,43118,571,036,445Plus: changes in accounting policies-143,572,545-1,399,694,619-1,543,267,164-71,475,128-1,614,742,292
Prior period error correctionBusiness combination under common controlOthers
II. Beginning balance in current year5,268,353,5014,834,854,33223,530,4513,615,6381,617,626,1642,252,156,76414,000,136,8502,956,157,30316,956,294,153III. Increase/decrease in the current year (“-” for decrease)500,000,000-86,457,849-1,679,48533,792,383125,030,241570,685,290-451,741,232118,944,058 (I) Total comprehensive income-86,457,849422,240,299335,782,450-28,892,395306,890,055 (II) Owner’s invested and decreased capital500,000,000500,000,000237,775,830737,775,830
1. Common stock invested by the owners
2. Capital invested by other equity instrument holders500,000,000500,000,000500,000,000
3. Amount of share-based payment included in the owner’s equity
4. Disinvestment by minority shareholders of subsidiaries-141,669,170-141,669,170
5. Investments received by subsidiaries from minority shareholders379,445,000379,445,000
6. Others
(III) Disposal of subsidiaries-614,227,994-614,227,994 (IV) Prot distribution33,792,383-297,210,058-263,417,675-46,431,030-309,848,705
1. Withdrawal of surplus reserves33,792,383-33,792,383
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders)-263,417,675 -263,417,675 -46,431,030-309,848,705
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 decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(VI) Special reserves-1,679,485-1,679,48534,357-1,645,128
1. Amount withdrawn in the current year82,412,82882,412,8282,590,98785,003,815
2. Amount used in the current year84,092,31384,092,3132,556,63086,648,943 (VII) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,834,854,332-62,927,3981,936,1531,651,418,5472,377,187,00514,570,822,1402,504,416,07117,075,238,211
6464
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Consolidated Statement of Changes in Owners’ Equity(Continued)
Unity: Yuan Currency: CNY
January to December in 2020
Item
2019
Equity attributable to the owners of the parent company
MinorityequityTotal owners’
equity
Paid-in capital
(or sharecapital)Other equity instruments
CapitalreservesLess: treasurystockOthercomprehensiveincomeSpecialreservesSurplusreservesGeneral riskpreparationUndistributedprotsOthersSub-total
PreferredstockPerpetualbondOthers
I. Balance at the end of the last year5,268,353,501---4,648,919,658-223,853,8603,019,1731,696,762,554-3,344,953,206-15,185,861,9522,426,634,78017,612,496,732Plus: changes in accounting policies-------216,130,221---119,821,864--96,308,357-9,011,824-105,320,181
Prior period error correctionBusiness combination under common controlOthersII. Beginning balance in current year5,268,353,501---4,648,919,6587,723,6393,019,1731,696,762,554-3,464,775,070-15,089,553,5952,417,622,95617,507,176,551III. Increase/decrease in the current year (“-” for decrease)-185,934,67415,806,812596,46564,436,155187,076,313-453,850,419610,009,4751,063,859,894 (I) Total comprehensive income------15,806,812---514,930,143-530,736,955-11,594,177519,142,778 (II) Owner’s invested and decreased capital----185,934,674-------185,934,674622,315,326808,250,000
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--185,934,674185,934,674622,315,326808,250,000 (III) Prot distribution64,436,155--327,853,830--263,417,675-973,150-264,390,825
1. Withdrawal of surplus reserves64,436,155--64,436,155-
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders)-----------263,417,675--263,417,675-973,150-264,390,825
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 decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves-------596,465----596,465261,476857,941
1. Amount withdrawn in the current year-------71,228,319----71,228,3194,507,52375,735,842
2. Amount used in the current year-------70,631,854----70,631,8544,246,04774,877,901 (VI) OthersIV. Balance at the end of the current year5,268,353,501---4,834,854,332-23,530,4513,615,6381,761,198,709-3,651,851,383-15,543,404,0143,027,632,43118,571,036,445
Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
6565
2020
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Statement of Changes in Owners’ Equity of the Parent Company
Unity: Yuan Currency: CNY
January to December in 2020
Item
2020
Paid-in capital (orshare capital)
Other equity instruments
Capital reservesLess: treasurystockOthercomprehensive
incomeSpecialreserves
Surplus reserves
Undistributed
protsTotal owners’equity
Preferredstock
Perpetual bondOthers
I. Balance at the end of the last year5,268,353,5014,914,468,6838,348,1071,760,690,4363,835,099,43515,786,960,162Plus: changes in accounting policies-143,572,545-1,292,152,909-1,435,725,454Prior period error correctionOthersII. Beginning balance in current year5,268,353,5014,914,468,6838,348,1071,617,117,8912,542,946,52614,351,234,708III. Increase/decrease in the current year (“-” for decrease)500,000,000-30,846,81133,792,38340,713,774543,659,346 (I) Total comprehensive income-30,846,811337,923,832307,077,021(II) Owner’s invested and decreased capital500,000,000 500,000,000
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders500,000,000 500,000,000
3. Amount of share-based payment included in the owner’s equity
4. Others
(III) Prot distribution33,792,383-297,210,058-263,417,675
1. Withdrawal of surplus reserves33,792,383-33,792,383
2. Distribution of owners (or shareholders)-263,417,675-263,417,675
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 decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year46,142,56746,142,567
2. Amount used in the current year46,142,56746,142,567 (VI) OthersIV. Balance at the end of the current year5,268,353,501500,000,0004,914,468,683-22,498,7041,650,910,2742,583,660,30014,894,894,054
6666
Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd.
Statement of Changes in Owners’ Equity of the Parent Company(Continued)
Unity: Yuan Currency: CNY
January to December in 2020
Item
2019
Paid-in capital
(or share
capital)
Other equity instruments
CapitalreservesLess: treasury
stockOthercomprehensiveincomeSpecial
reservesSurplusreservesUndistributed
protsTotal owners’
equity
Preferred stockPerpetual bondOthers
I. Balance at the end of the last year5,268,353,501---4,914,468,683-71,258,509-1,696,254,2813,520,430,44015,470,765,414Plus: changes in accounting policies-66,945,426---1,838,728-68,784,154
Prior period error correctionOthersII. Beginning balance in current year5,268,353,501---4,914,468,683-4,313,083-1,696,254,2813,518,591,71215,401,981,260III. Increase/decrease in the current year (“-” for decrease)------4,035,024-64,436,155316,507,723384,978,902 (I) Total comprehensive income------4,035,024--644,361,553648,396,577 (II) Owner’s invested and decreased capital
1. Common stock invested by the owner
2. Capital invested by other equity instrument holders
3. Amount of share-based payment included in the owner’s equity
4. Others
(III) Prot distribution--------64,436,155-327,853,830-263,417,675
1. Withdrawal of surplus reserves--------64,436,155-64,436,155-
2. Distribution of owners (or shareholders)----------263,417,675-263,417,675
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 decit
4. Carryforward retained earnings in variation of dened benet plan
5. Carryforward retained earnings of other comprehensive income
6. Others
(V) Special reserves
1. Amount withdrawn in the current year-------43,399,676--43,399,676
2. Amount used in the current year-------43,399,676--43,399,676(VI) Others-----------IV. Balance at the end of the current year5,268,353,501---4,914,468,683-8,348,107-1,760,690,4363,835,099,43515,786,960,162
Legal Representative:Person in charge of
accounting work:
Person in charge ofaccounting agency:
6767
2020III. Company prole1 Company prole
√Applicable □Not applicable
Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to as “the Company”) is a joint-stock company limitedestablished on September 8, 1997 through restructuring Shanghai Zhenhua Port Machinery Company Limited (hereinafterreferred to as “Zhenhua Company”). Both the registration place and the address of the headquarters are in Shanghai City, P. R.China.As approved by ZWFZ (1997) No.42 Document issued by the Securities Commission under the State Council, theCompany issued 100 million domestically-listed shares held by the foreign investors (B-share) from July 15, 1997 till July 17,1997. The B-shares were listed for trading at Shanghai Stock Exchange on Aug. 5, 1997.As approved by ZJFXZ (2000) No. 200 Document of China Securities Regulatory Commission, the Companyadditionally issued of 88 million common shares (RMB denominated) (A-share) held by the domestic investors in December2000. The A-shares were listed for trading at Shanghai Stock Exchange on Dec. 21, 2000.
As approved by ZJFXZ (2004) No.165 Document of China Securities Regulatory Commission, the Company additionallyissued 114,280,000 A-shares held by the domestic investors on December 23, 2004. The additionally issued A-shares werelisted at Shanghai Stock Exchange respectively for trading on December 31, 2004 and January 31, 2005.
As approved by ZJFXZ (2007) No. 346 Document of China Securities Regulatory Commission, the Companyadditionally issued 125,515,000 A-shares held by the domestic investors on October 15, 2007. The additionally issuedA-shares were listed at Shanghai Stock Exchange for trading on October 23, 2007 and January 23, 2008 respectively.
As approved by ZJXKZ (2009) No.71 Document of China Securities Regulatory Commission, the Company privatelyplaced 169,794,680 A-shares on Sept. 22, 2008 to its controller China Communications Construction Co., Ltd. (hereinafterreferred to as “China Communications Corporation”). A-shares privately placed were the tradable shares with limited tradingconditions. From Mar. 20, 2012 on, the term of trading limitation expired for above-mentioned A-shares which were listed atShanghai Stock Exchange for trading.
By December 31, 2020, after all issuances of the shares and bonus shares distributed in the past year, the total sharesof the Company amounted to 5,268,353,501 shares, par value per share was RMB 1. The share capital totaled up to RMB5,268,353,501.
On December 18, 2005, China Road and Bridge Construction Group General Company and the Company’s formercontrolling shareholder China Harbor Construction (Group) General Company were merged into China CommunicationsConstruction (Group) Co. Ltd after restructuring (hereafter referred to as “CCCG”). In accordance with the O?cial Reply toOverall Reorganization and Overseas-listed and Domestically-listed Share of China Communications Construction Co. Ltd.(GZGG [2006] No.1063 Document) by State-owned Assets Supervision and Administration Commission of the State Councilon Aug. 16, 2006, the reorganization proposal of China Communications Construction (Group) Co., Ltd approved in theO?cial Reply to the Issues Concerning Management of State-owned Stock Equity of China Communications ConstructionCo. Ltd. (GZCQ [2006] No.1072 Document) on Sept. 30, 2006 and the O?cial Reply to Approval of China CommunicationsConstruction Co. Ltd.’s Announcement of Purchase Report of Road and Bridge Construction Co. Ltd. and ShanghaiZhenhua Port Machinery (Group) Co. Ltd. and Exemption of Their Obligations for Purchase by O?er (ZJGSZ [2006] No.227 Document), CCCG solely initiated the incorporation of China Communications Construction Co. Ltd. on Oct. 8, 2006and invested the stock equity of the Company held into the newly incorporated China Communications Co., Ltd. With thecompletion of reorganization, China Communications Co., Ltd thus became the controlling shareholder of the Company.
In 2016, the Company was granted the Uniform Social Credit Code of 91310000607206953D.
On July 18, 2017, the board of directors of China Communications Construction Co., Ltd. discussed and approvedthe Proposal for Transfer of Some Shares of Shanghai Zhenhua Heavy Industries (Group) Co., Ltd by Agreement andAssociated Transaction and agreed to transfer totally 1,316,649,346 shares of this Company held by it to CCCG and CCCG(Hong Kong) Holdings Co., Ltd. (hereinafter referred to as “CCCG Hong Kong”), accounting for 29.990% of the total sharesof this Company, after that, China Communications Construction Co., Ltd. held 16.239% of the stock equity of this Company.The transfer and registration of shares was accomplished on December 27, 2017. On the date of the transfer of shares,CCCG directly held 552,686,146 A-shares of this Company (accounting for 12.589% of the total shares of this Company),indirectly held 763,963,200 B-shares of this Company through CCCG (Hong Kong) (accounting for 17.401% of the totalshares of the Company) and held 712,951,703 A-shares of this Company through China Communications Construction Co.,Ltd. (accounting for 16.239% of the total shares of this Company), as a result, it became the controlling shareholder of theCompany.
The Company and its subsidiaries (hereinafter collectively referred to as “the Group”) was mainly engaged in design,construction, installation and contracting of large-sized port handling system and equipment, o?shore heavy-duty equipment,engineering machinery, engineering vessel and large-sized metal structural members and their parts and components; repairof vessel; leasing of self-produced crane, sales of the self-produced products; international shipment by available specialtransportation vessel and specialized contracting for steel structure engineering.
The nancial statements have been approved by the resolution of the Board of Directors of the Company on March 30,2021.
6868
2 Scope of consolidated nancial statements
√Applicable □Not applicable
The consolidation scope of the consolidated nancial statements is determined based on control. For the changes in thecurrent period and the main subsidiaries included in the scope of consolidation, please see Note IX.IV. Basis of preparation for nancial statements
1 Basis of preparation
The financial statements are prepared on the basis of the Accounting Standards for Business Enterprise– BasicStandards issued by the Ministry of Finance and the subsequently issued and revised specific accounting principles,guidelines, explanations and other related regulations (hereinafter collectively referred to as “Accounting Standards forBusiness Enterprise”).2 Going concern
√Applicable □Not applicable
The nancial statements of the Company have been presented on a going concern basis.
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 nancial statements for the current year, in view of the facts that the Group has obtained thebank credit line and the nancing record and it has established good cooperation relationship with all banks and nancialinstitutions with good operation status, the Board of Directors of the Company believes that, the Group may continueacquiring su?cient nancing sources and operating cash ows to guarantee the funds required for operation, repaymentof expired debts and capital expenditures. Therefore, the Board of Directors of the Company rmly believes to prepare theannual nancial statements for the current year on a basis of going-concern.
While preparing the nancial statements, except for some nancial instruments, the valuation principle of historical costshall 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
Specic accounting policies and accounting estimates tips
√Applicable □Not applicable
The Company determines the specic accounting policies and accounting estimates based on actual production andoperation characteristics, which are mainly reected in the provision for bad debts receivable, inventory valuation methods,business accounting of construction contracts, depreciation of xed assets, amortization of intangible assets, measurementmodel of investment properties and income recognition and measurement and so on.1 Statement on compliance with the Accounting Standards for Business Enterprises
The nancial statements meet the requirements of the Accounting Standards for Business Enterprises, and truly andcompletely reect the nancial position of the Company and the Group as at December 31, 2020, and the operating resultsand cash ows 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 onDecember 31 of each year.3 Operating cycle
□Applicable √Not applicable
4 Functional currency
RMB is the recording currency of the Group and also the currency used in the nancial statements. Unless otherwisespecied, the nancial statements are presented in RMB.
The subsidiaries, joint ventures and associates under the Group shall, on the basis of the main economic environmentin which they operate, decide their own recording currency, and convert them into RMB when preparing nancial statements.5 Accounting treatment of business combination under common control and not under common control
√Applicable □Not applicable
Business combinations are classied into business combination under common control and business combination notunder common control.
Business combination under common control
The business combination under common control is a business combination in which all of the combining enterprises
6969
2020are ultimately controlled by the same party or the same parties both before and after the business combination and on whichthe control is not temporary. In a business combination under common control, the party which obtains control of othercombining 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 thegoodwill formed by the acquisition of the combined party by the ultimate controlling party), are subject to the correspondingaccounting treatment in accordance with the carrying amount in the nancial statements of the ultimate controlling partyon the combination date. The di?erence between the carrying amount of the net assets obtained from the combination andthe carrying amount of the consideration paid (or total par value of the shares issued) for the combination is treated as anadjustment to capital premium in the capital reserves and the capital reserves carried out under the former system. If thecapital premium is not su?cient to absorb the di?erence, the remaining balance is adjusted against retained earnings.Business combination not under common controlThe business combination not under common control is a business combination in which all of the combining enterprisesare not controlled by the same party or the same parties before and after the combination. As for the business combinationnot under common control, the party which obtains the control of other combining enterprises on the acquisition date is theacquirer, and the other combining enterprises is the acquiree. The acquisition date refers to the date on which the acquireractually obtains control on the acquiree.The identifiable assets, liabilities and contingent liabilities obtained of the acquiree in the business combination notunder common control shall be measured at fair value on the acquisition date.The positive balance between the sum of the fair value of the combined consideration paid (or fair value of the issuedequity securities) and the fair value of the held stock equity of the acquiree before the acquisition date and the fair value ofthe identiable net assets obtained in the combination from the acquiree is conrmed as goodwill, and shall be accountedfor subsequent measurement after subtracting the accumulated impairment losses from the cost. If the sum of the fair valueof the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stock equity ofthe acquiree before the acquisition date is smaller than the fair value of the identiable net assets of the acquiree obtainedin the combination, firstly recheck the measurement of the fair value of the identifiable assets, liabilities and contingentliabilities obtained from the acquiree, and the fair value of the combined consideration paid (or fair value of the issued equitysecurities), and the fair value of the held stock equity of the acquiree before the acquisition date, after that, if the sum thefair value of the combined consideration paid (or fair value of the issued equity securities) and the fair value of the held stockequity of the acquiree before the acquisition date is still smaller than the fair value of the identiable net assets obtained incombination from the acquiree, the balance shall be included in the current prot or loss.6 Preparation of consolidated nancial statements
√Applicable □Not applicable
The consolidation scope of consolidated nancial statements is determined on the basis of control, covering the nancialstatements of the Company and all the subsidiaries. A subsidiary is a subject which is controlled by the Company (includingthe enterprise, the separable part of the invested entity, and the structural entity controlled by the Company).When preparing the consolidated nancial statements, the subsidiary adopts the accounting period and the accountingpolicies consistent with the Company. Assets, liabilities, equity, income, expenses and cash ows arising from all transactionsbetween the Group’s internal companies are fully o?set at the time of combination.If the current losses borne by the minority shareholders of the subsidiary exceed the shares held by the minorityshareholders in the initial shareholders’ equity of the subsidiary, the balance still o?sets the minority’s equity.For the subsidiaries acquired in business combination not under common control, the operating results and the cash owsof the acquiree shall be included in the consolidated nancial statements on the date of acquisition of control till the termination ofcontrol. When preparing the consolidated nancial statements, the nancial statements of subsidiaries shall be adjusted based onthe fair value of various identiable assets, liabilities and contingent liability conrmed on the acquisition date.For the subsidiaries acquired in business combination under common control, the operating results and the cash owsof the combined party shall be included in the consolidated nancial statements at the beginning of the combination period.When preparing the consolidated nancial statements, relevant items of the previous nancial statements shall be adjustedand the reporting entity formed after the consolidation is regarded as existed since the ultimate controlling party begins toimplement control.If changes in the relevant facts and circumstances lead to changes in one or more control elements, the Group will re-evaluate whether or not the investee is controlled.The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until theloss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as atransaction dealing with the equity investment of the subsidiary and losing control. However, before the loss of control, thedi?erence between the disposal price and the book value of the long-term equity investment corresponding to the disposedequity is recognized as other comprehensive income in individual nancial statements and transferred to the current protor loss when the control is lost. If the above-mentioned transactions are not part of a package transaction, accountingtreatment shall be carried out for each transaction separately according to whether the control is lost or not. If the control islost, the remaining equity is re-measured at fair value at the date when control is lost. The di?erence between the sum of the
7070
consideration received on disposal and the fair value of remaining equity and the share of the former subsidiary's net assetscumulatively calculated from the acquisition date according to the original proportion of shareholders' equity, is included inthe prot or loss in the period in which control is lost. If goodwill is involved, the amount of the goodwill shall be deductedwhen calculating and determining the prot or loss on the disposal of the subsidiary. Other comprehensive income relatedto the equity investment of the original subsidiary shall be accounted on the same basis as the subsidiary’s direct disposalof relevant assets or liabilities when the control is lost. The shareholders’ equity recognized due to changes in shareholders’equity other than net prot or loss, other comprehensive income and prot distribution related to the original subsidiary shallbe transferred to current prot or loss when the control is lost.7 Classication of joint venture arrangement and methods of joint operation accounting treatment
□Applicable √Not applicable
8 Recognition criteria of cash and cash equivalentsCash is the Group’s cash on hand and the deposits that can be readily drawn on demand. Cash equivalents are short-term, highly liquid investments held by the Group that are readily convertible to known account of cash and which are subjectto an insignicant risk of changes in value.9 Foreign currency transactions and transaction of nancial statements denominated in foreign currency
√Applicable □Not applicable
In the case of a foreign currency transaction, the Group translates the amount of foreign currency into the amount of therecording currency.At the time of initial conrmation, the amount of foreign currency transaction shall be translated into the amount of therecording currency at the spot rate of the transaction date. On the date of balance sheet, the currency exchange rate of thecurrency denominated items shall be translated at the spot rate on the date of balance sheet. The transaction di?erence ofsettlement and monetary items arising therefrom, in addition to the di?erence arising from foreign currency special borrowingrelating to the assets of which the purchase and construction conform to the capitalized conditions, which shall be handledin accordance with the principle of capitalization of borrowing costs, shall be included in the current prot or loss. The foreigncurrency non-currency items calculated on historical cost basis are still translated at spot rate on the date of transaction,not changing the amount of its recording currency. The foreign currency non-monetary items measured at fair value shallbe translated at the spot rate on fair value determination date, and the di?erence arising therefrom shall be included in thecurrent prot or loss or other comprehensive income according to the nature of the non-monetary items.In the case of overseas business, the Group translates its recording currency into RMB in preparing the financialstatements: for assets/liabilities in the balance sheet, spot exchange rate on the date of balance sheet is used for translation.As for the items under the shareholders’ equity, except for those under “undistributed prots”, other items are translated usingthe spot exchange rate at the time of occurrence; the income and expense items in the income statement shall be translatedat the spot exchange rate of the transaction. The conversion di?erence of foreign currency statements arising from abovetranslation shall be recognized as other comprehensive income. When disposing overseas operations, other comprehensiveincome related to the overseas operation shall be transferred into the current prots and losses, partial disposal shall becalculated according to the proportion of disposal.Foreign currency cash ows shall be translated at the spot exchange rate on the day of occurrence of the cash ow.Cash ow from overseas subsidiaries is translated at the spot exchange rate on the day of occurrence of the cash ow.E?ect of changes in exchange rate on cash amount is shown separately in the cash ow statements as an adjustment item.10 Financial instruments
√Applicable □Not applicable
Financial instrument is the contract that forms the nancial assets of an enterprise and the nancial liabilities or equityinstruments of the other entities.
Recognition and de-recognition of nancial instruments
The Group recognizes a nancial asset or nancial liability when becoming a party to a nancial instrument contract.
Once the following conditions are satised, the Group will de-recognize nancial assets (or part of nancial assets or ofa portfolio of similar nancial assets), i.e. writing o? from its account and balance sheet:
(1) The right to receive cash ows from nancial assets expires;
(2) The right to receive the cash ow from nancial asset has been transferred, or have assumed the obligation in the
“pass-through agreement” to pay the collected cash ow timely to the third party in full; and (a) has transferred substantiallyalmost all the risks and rewards of ownership of the nancial asset, or (b) although does not transfer or retain substantiallynearly all of the risks and rewards of ownership of the nancial asset, but has given up the control over the nancial asset.
In the event that the liability of a nancial liability has been fullled, cancelled or expired, the nancial liabilities shall bede-recognized. If the existing nancial liability is replaced by the same creditor with another nancial liabilities of virtuallyentirely di?erent terms, or the terms of the existing liabilities are almost entirely modied substantially, such substitutions
7171
2020or modications will be handled as the derecognition of the original liability and the recognition of new liabilities, and thedi?erence will be included in current prot or loss.
In case of trading nancial assets in the conventional way, such nancial assets will be recognized and de-recognizedon the trading day. Trading nancial assets in the conventional way refers to collecting or delivering nancial assets withinthe time limit prescribed in the law or the prevailing practice in accordance with the terms and conditions of the contract.Trading day is the date on which the Group commits to buy or sell nancial assets.Classication and measurement of nancial assetsAt the initial recognition, the Group's nancial assets, based on the Group's management model of nancial assets andthe contract cash ow characteristics of nancial assets, are classied as nancial assets measured at fair value through thecurrent prot or loss, nancial assets measured at amortized cost, and nancial assets measured at fair value through theother comprehensive income.Financial assets are measured at fair value at initial recognition, while the accounts receivable or notes receivablearising from sales of goods or rendering of services, excluding the significant financing composition or the financialcomposition for over one year, are initially measured at the transaction price.For financial assets measured at fair value through the current profit or loss, relevant transaction costs are directlyincluded in the current prot or loss, while the transaction costs relevant to other nancial assets are included in the initialrecognition amount.The subsequent measurement of nancial assets depends on the classication thereof:
Investment in debt instruments measured at cost
Financial assets simultaneously meet the following conditions are classified as the financial assets measured atamortized cost: the management model of such nancial assets aims at the collection of contract cash ows; according tothe terms in the contract for such nancial assets, the cash ows generating on the special date are paid at the interest forthe principal and the unpaid principal. Such nancial assets are recognized as interest income by the e?ective rate method,and the gains or losses from the derecognition, modication or impairment thereof are in the current prot or loss.
Investment in debt instruments measured at fair value through other comprehensive income
If nancial assets meet the following conditions at the same time, the Group classies them as nancial assets at fairvalue through other comprehensive income: the Group’s business model for the management of the financial assets isaimed at both the collection of contract cash ow and the sale of the nancial assets; the contractual terms of the nancialasset stipulate that the cash ow generated at a particular date is only the payment of the principal and interest based on theoutstanding principal amount. The interest income of such nancial assets is recognized by the e?ective interest method. Atderecognition of nancial assets, the accumulated gains or losses previously included in other comprehensive income aretransferred from the other comprehensive income to the current prot or loss.
Investment in equity instruments measured at fair value through the other comprehensive income
The Group irrevocably chooses to designate some non-trading equity instruments as the nancial assets measuredat fair value through the other comprehensive income, and only include the relevant dividends revenue (except for thatpartially recovered as the investment cost) in the current prot or loss, and the subsequent changes in fair values in the othercomprehensive income, without the provision for impairment. At derecognition of nancial assets, the accumulated gainsor losses previously included in other comprehensive income are transferred from the other comprehensive income to theretained earnings.
Financial assets measured at fair value through the current prot or loss
The nancial assets other than the nancial assets measured at amortized cost and the nancial assets measured atfair value through the other comprehensive income are classied as the nancial assets measured at fair value through theother comprehensive income. For such nancial assets, the subsequent measurement is made at fair value, and changes infair value are included in the current prot or loss.
Classication and measurement of nancial liabilities
At the initial recognition, the Group’s financial liabilities are classified as: financial liabilities measured at fair valuethrough the current prot or loss, and other nancial liabilities. For nancial liabilities measured at fair value through thecurrent prot or loss, relevant transaction costs are directly included in the current prot or loss, while the transaction costsrelevant to other nancial liabilities are included in the initial recognition amount.
The subsequent measurement of nancial liabilities depends on the classication thereof:
Financial liabilities measured at fair value through the current prot or loss
Financial liabilities measured at fair value through the current prot or loss include the trading nancial liabilities (includingthe derivative instruments belonging to nancial liabilities), and the nancial liabilities measured at fair value through thecurrent prot or loss. The subsequent measurement of the trading nancial liabilities (including the derivative instrumentsbelonging to nancial liabilities) is made at fair value, and changes in fair value are included in the current prot or loss. Forthe nancial liabilities measured at fair value through the current prot or loss, the subsequent measurement is made at fairvalue, and the changes in fair value are included in the current prot or loss except that the changes in fair value causedby the changes in the Group's credit risks are included in the other comprehensive income; if including the changes in fairvalue caused by the changes in the Group's credit risks in the other comprehensive income may cause or exacerbate theaccounting mismatch in prot or loss, the Group will include all changes in fair value (including the amounts a?ected by thechanges in the Group’s credit risks) in the current prot or loss.
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Other nancial liabilitiesThe subsequent measurement of such nancial liabilities is made at amortized cost by the e?ective rate method.Impairment of nancial instrumentsBased on the expected credit losses, the Group makes the provision for impairment and recognizes the loss provisionsfor the nancial assets measured amortized cost and the investment in debt instruments measured at fair value through theother comprehensive income.For the receivables excluding signicant nancing component, the Group measures the loss provision based on theamount equivalent to the expected credit loss over the whole duration by the simplied measurement method.
Except for the above financial assets subject to the simplified measurement method, on each balance sheet date,the Group makes assessment on whether the credit risk in financial assets has had significant increase after the initialrecognition. If the credit risk does not signicantly increase after the initial recognition, standing at the rst level, the Groupwill measure the loss provision based on the amount of expected credit loss over the next 12 months, and calculate theinterest income based on the book balance at the e?ective interest rate; if the credit risk has signicantly increased afterthe initial recognition without any credit impairment, standing at the second level, the Group will measure the loss provisionbased on the amount equivalent to the expected credit loss over the whole duration; in case of any credit impairment afterthe initial recognition, standing at the third level, the Group will measure the loss provision based on the amount of expectedcredit loss over the whole duration, and calculate the interest income based on the amortized cost at the e?ective interestrate. For nancial instruments only with relatively low credit risk on the balance sheet date, the Group assumes that suchcredit risk does not signicantly increase after the initial recognition.
The Group evaluates the expected credit loss of nancial instruments individually and by portfolio. After taking the creditrisk characteristics of di?erent customers into account, the Group evaluated the expected credit loss on accounts receivableby the aging portfolio.
For the Group’s disclosure of the judgment standards for signicant increase of credit risk, denition of assets with creditimpairment and assumption of the measurement of expected credit loss, see Note X for details.
When the Group ceases to expect reasonably the contract cash ows of nancial assets which can be recovered inwhole or in part, the Group will directly write o? the book balance of such nancial assets.
Financial instrument o?set
Financial assets and nancial liabilities are presented in the balance sheet at the net amount after mutual o?set whenthe following conditions are met simultaneously: possess the legal right to o?set the recognized amount and such right iscurrently executable; intend to settle at net amount, or cash such nancial assets or liquidate such nancial liabilities.
Financial guarantee contracts
A nancial guarantee contract refers to the contract where the issuer shall pay the specic amount to the contract holdersu?ering losses when the specic debtor fails to repay debts according to the nancial guarantee clauses. The nancialguarantee contracts are measured at fair value at initial recognition. Financial guarantee contracts other than those thenancial liabilities measured at fair value through the current prot or loss are subsequently measured at the higher betweenthe amount of expected credit loss reserve determined on the balance sheet date and the balance of the initially recognizedamount deducting the accumulated amortization amount determined in the revenue recognition principle.
Derivative nancial instruments
The Group carries out the exchange rate risk hedging by using derivative nancial instruments, such as the forwardexchange contract and the foreign exchange option contract. Derivative financial instruments are initially measured attheir fair values on date of signing relevant derivative transaction contracts and subsequently measured at their fairvalues. Derivative nancial instrument with positive fair value is recognized as an asset, and that with negative fair value isrecognized as a liability.
Gains or losses from changes in fair values of derivative instruments are directly included in the current prot or loss,unless they are related to the hedging accounting.
Transfer of nancial assets
If the Group has transferred nearly all the risks and rewards associated with the ownership of nancial assets to thetransferee, such nancial assets will be de-recognized; if the Group retains nearly all the risks and rewards associated withthe ownership of nancial assets, such nancial assets will continuously recognized.
If the Group neither transfers nor retains nearly all the risks and rewards associated with the ownership of the nancialassets, the following treatments will be adopted based on different circumstances: if the Group has given up its controlover the nancial assets, the nancial assets will be derecognized, and the assets and liabilities arising therefrom will berecognized; if the Group does not give up its control over the nancial assets, the nancial assets will be recognized to theextent of its continuing involvement in the transferred nancial assets, while relevant liabilities are recognized accordingly.11 Notes receivable
Determination and accounting treatment of the expected credit loss of notes receivable
□Applicable √Not applicable
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202012 Accounts receivableDetermination and accounting treatment of the expected credit loss of accounts receivable
□Applicable √Not applicable
13 Receivables nancing
□Applicable √Not applicable
14 Other receivablesDetermination 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 andcontract performance cost.Inventories are initially measured at the cost. The inventory cost includes the procurement cost, processing cost andother 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 thecost is higher than the net realizable value, the provision for inventory depreciation will be made and included in the currentprot or loss. If the previous factor for the provision for inventory depreciation has been eliminated, resulting that the netrealizable value of the inventory is higher than the cost of the same, the amount written down will be reversed in the amountof provision for inventory depreciation originally made, and the reversed amount will be included in the current prot or loss.The net realizable value, in the routine activities, refers to amount of the estimated selling price of inventory minusthe estimated cost to completion, estimated selling expense and relevant taxes and surcharges. At the time of making theprovision for inventory depreciation, the provision for depreciation of raw materials is made by category, and that of goods inprocess, 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 forcustomers, as the commencement dates and the completion dates are usually in different accounting years, the Groupaccounts 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 constructioncontract will be recognized on the balance sheet date based on the progress of completion by the percentage-of-completionmethod. The outcome of a construction contract can be estimated reliably means that the economic benefit relevant tothe contract is likely to ow in the Group, and the actually incurred contract cost can be clearly distinguished and reliablymeasured; for xed price contracts, the following conditions should be also met: The total contract revenue can be reliablymeasured, and the progress of completion and the cost to complete the contract can be reliably determined. Total contractrevenue includes the initial cost specied in the contract and the revenue from contract change, claim and award. The Groupdetermines 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 tothe time-point for recognizing the revenue of the construction contract at the end of the period. The Group has determinedthe 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 factoryqualication certicates for products have been issued, the bill of loading has been obtained, and the product delivery hasbeen prepared;
Time-point 3: The products have been delivered to the purchaser upon the purchaser’s inspection, and the deliverycerticate issued by the purchaser has been obtained.
The Group analyzes construction contracts completed in the previous year by the category of product, and determinesthe percentage of completion to be recognized at each revenue recognition time-point, based on the proportion of the cost atthe each revenue recognition time-point mentioned above in the total actual cost, and takes such percentage of completionas 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 proportionof the contract cost accumulated incurred in the total estimated contract costs. The accumulated incurred contract cost doesnot 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 theaccumulatively 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 takenseparately in following situations:
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(iv) If the contract cost is recoverable, it will be recognized based on the actual contract cost recoverable as the contractexpense 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 contractrevenue recognition.
(c) If the total estimated contract cost is more than the total estimated contract revenue, the estimated loss will beimmediately recognized as the current prot or loss.
(d) For the contract price by installment, the settled price is presented, and will be reversed based on relevantaccumulated incurred cost and the accumulated recognized gross prot after the settlement of construction contract. Onthe balance sheet date, the di?erence between the sum of the accumulated incurred cost and the accumulated recognizedgross prot and the settled price (the former is larger) is presented as the completed but not settled construction payment inthe current assets; in case the latter is larger, such di?erence will be presented as the settled but not completed constructionpayment 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 thefulfillment of performance obligations and customer payments. After offsetting the contract assets and contract liabilitiesunder the same contract, the Group presents them in net amount.
Contract assets
Contract assets refer to the right to receive consideration for goods or services transferred to customers, and the rightdepends on factors other than the passage of time.
For details of the Group’s determination and accounting treatment method of expected credit loss of contract assets,please refer to Note V.
(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 ofowners' equity acquired from the combinee on the combination date in the consolidated nancial statements of the ultimatecontroller; the di?erence between the initial investment cost and the book value of the combination consideration is used toadjust the capital reserves (if the capital reserves are insu?cient to o?set, the retained earnings will be o?set); for the othercomprehensive income before the combination date, at the disposal of such investment, the accounting treatment identicalto that for the direct treatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognizedon account of the change in other shareholders’ equity of the investee other than net prot or loss, other comprehensiveincome and prot distribution is transferred in the current prot or loss at the disposal of such investment; in which, after suchdisposal, if such investment is still the long-term equity investment, it will be carried forward in proportion; if it is convertedinto the nancial instrument, it will be carried forward in full.
The initial investment cost of a long-term equity investment acquired through business combination not under commoncontrol is recognized at the combination cost (if the business combination not under common control is realized through
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2020several transactions by step, the sum of the book value of the equity investment of the acquiree held before the acquisitiondate and the cost of investment newly added on the acquisition date is recognized as the initial investment cost), and thecombination cost includes the asset paid by the acquiree, liability incurred or borne by the acquiree, and the fair values ofissued equity securities; for the other comprehensive income held before the acquisition date and recognized due to theaccounting under equity method, at the disposal of such investment, the accounting treatment identical to that for the directtreatment of relevant assets or liabilities by the investee is adopted; the shareholders’ equity recognized on account of thechange in other shareholders’ equity of the investee other than net prot or loss, other comprehensive income and protdistribution is transferred in the current prot or loss at the disposal of such investment; in which, after such disposal, if suchinvestment is still the long-term equity investment, it will be carried forward in proportion; if it is converted into the nancialinstrument, it will be carried forward in full. The accumulated changes in fair values of the equity investments held before theacquisition date, which was included in the other comprehensive income as the nancial instruments, are fully transferredin the retained earnings (from 2019) or the current prot or loss (before 2019), on the accounting at cost. For long-termequity investments acquired not through business combination, their initial investment costs are determined by the followingways: if the long-term equity investment is acquired through cash payment, the initial investment cost will be the sum of theacquisition price actually paid and the costs, taxes and other necessary costs, which are directly relevant to the long-termequity investment; if the long-term equity investment is acquired by issuing equity securities, the initial investment cost will bethe fair value of the equity securities issued.The long-term equity investments where the Company could control the investee shall be accounted in individualnancial statements of the Company under the cost method. Control means the power owned over the investee and enjoysthe variable return through participating in activities related to the investee, and has the ability to a?ect its return by using thepower over the investee.
Under the cost method, long-term equity investments are valuated at initial investment cost. The Company shallincrease or recover the investment to adjust the cost of long-term equity investments. Cash dividends or prots declared anddistributed by the investee should be recognized as investment income in the current period.If the Group has joint control over or signicant inuence on the investees, long-term equity investments are accountedfor with the equity method. Joint control refers to the control shared over an arrangement in accordance with the relevantstipulations, and the decision-making of related activities of the arrangement should not be made before the party sharingthe control right agrees the same. Signicant inuence refers to the power to participate in making decisions on the nancialand operating policies of the investee, but not the power to control, or jointly control, the formulation of such policies withother parties.For long-term equity investments measured under the equity method, if the initial investment costs are higher than theinvestor's attributable share of the fair value of the investee's identiable net assets, the initial costs of the long-term equityinvestments shall be recognized; if the initial investment costs are lower than the investor's attributable share of the fair valueof the investee's identiable net assets, the di?erence shall be recognized in current prot and loss and at the same time theadjustment will be made to the initial costs of the long-term equity investments.Where the equity method is adopted, after the long-equity investments are acquired, the Company shall, according tothe shares of net prot and loss and other comprehensive income realized by the investee which the Company shall enjoyor bear, recognize the prot and loss on the investments and other comprehensive income and adjust the book value of thelong-term equity investments. When recognizing the share of net prot or loss of the investee that the Group shall enjoy,based on fair value of various identifiable assets and others of the investee on acquisition and according to accountingpolicies and accounting periods of the Group, the Group shall write o? the part of incomes from internal transactions withassociates and joint ventures which are attributable to the investor according to the shareholding ratio (but the loss frominternal transactions is the asset impairment loss, its total amount shall be recognized) and then recognize the prot andloss on investments on such basis, except those assets investments or sale constitute business. The Group shall, in thelight of the prots or cash dividends that the investee declares to distribute, calculate the part it should share and reduce thebook value of the long-term equity investment correspondingly. Recognition of the net loss in the investee shall be withinthe limit that the book value of long-term equity investments and other long-term interests which substantially form the netinvestment in the investee are reduced to zero, unless the Group is obliged to bear extraneous losses; For other changesin shareholder's equity of the investee excluding net losses or prots, other comprehensive income or prot distribution, thebook value of long-term equity investments will be adjusted and included in shareholder's equity.For disposal of long-term equity investments, the difference between the book value and the actual price shall beincluded in the current investment income. For long-term equity investments recognized under equity method, when theequity method is no longer adopted due to the disposal, accounting treatment should be made for other comprehensiveincome previously recognized under the equity method by using the same basis for the investee to directly dispose therelevant assets or liabilities. Shareholder's equity recognized from the investee's changes in other shareholder’s equityother than net prot or loss, other comprehensive income and prot distribution should all transferred to the current protsor losses. If the equity method is still adopted, the relevant other comprehensive income accounted by the original equitymethod shall be accounted on the same basis as the invested entity's direct disposal of relevant assets or liabilities, and shallbe transferred to the current prot or loss in proportion. The shareholders’ equity recognized due to changes in shareholders’equity of the investee other than net prot or loss, other comprehensive income and prot distribution shall be transferred tothe current prot or loss according to corresponding proportion.
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The Group disposes of the equity investment in the subsidiaries step by step through multiple transactions until theloss of control. If the above-mentioned transactions are part of a package transaction, the transactions are treated as atransaction dealing with the equity investment of the subsidiary and losing control. However, before the loss of control, thedi?erence between the disposal price and the book value of the long-term equity investment corresponding to the disposedequity is recognized as other comprehensive income in individual nancial statements and transferred to the current prot orloss when the control is lost. If the above-mentioned transactions are not part of a package transaction, accounting treatmentshall be carried out for each transaction separately. If the control is lost, in the individual financial statements, for theremaining equity, if the remaining equity after disposal can jointly control or has a signicant impact on the original subsidiary,it shall be recognized as long-term equity investment, and the accounting treatment shall be carried out according to relevantprovisions on the conversion of cost method into equity method; otherwise, it shall be recognized as a nancial instrument,and the di?erence between the fair value and the book value on the date of loss of control is included in the current prot orloss.22 Investment propertiesInvestment properties refer to properties that are held for the purposes of earning rental income, capital appreciation, orsome combination thereof, including land use rights and buildings that have been leased out.The investment property shall be initially measured at cost. Subsequent expenses related to investment properties, ifthe economic benets associated are likely to ow in and its cost can be measured reliably, should be recorded in the cost ofinvestment property. Otherwise, such subsequent expenses should be included in current prots or losses upon occurrence.The subsequent measurement of an investment property shall be conducted by the Group under the cost method, andthe land use right and buildings shall be amortized and depreciated according to the expected useful life and net residualrate of the investment property. The expected useful lives, net residual value rate and annual depreciation (amortization) rateof the investment properties are as follows:
Estimated useful livesEstimated net residual value rateAnnual depreciation (amortization) rateBuildings30 years0%3.3%Land use rightLand useful lives0%
Determined according to the estimatednet residual value and useful life forthe land useful livesThe Group shall review estimated useful lives, estimated net residual value and depreciation (amortization) methods ofthe investment properties at the end of each year and shall make adjustment when necessary.When an investment property is changed for self-use, upon change, the investment property shall be converted intoxed assets or intangible assets. When the self-use property is changed to earn rentals or for capital appreciation, uponchange, xed assets or intangible assets shall be converted into investment properties. When there is a conversion, the bookvalue before the conversion shall be regarded as the book value after the conversion.23 Fixed assets
(1) Recognition criteria
√Applicable □Not applicable
Fixed assets will only be recognized when the economic benets relating to the xed assets may ow into the Groupand the costs of the xed assets can be measured reliably. If the subsequent disbursements relevant to a xed asset meetthe recognition conditions, they shall be recorded in the cost of xed asset, and the book value of the replaced part shall bederecognized; otherwise, they shall be recorded in the current prots and losses.Fixed assets are initially measured at cost. The costs of externally acquired xed assets comprise their purchase prices,related taxes and surcharges and any attributable expenditure incurred to prepare the asset for its intended use.
(2) Depreciation method
Except for the xed assets form by using withdrawn safe production costs, the provisions for the depreciation of xedassets are made by straight-line method, and the useful lives, expected net salvage value and annual depreciation rates ofvarious xed assets are as follows:
√Applicable □Not applicable
Category
Depreciationmethod
Useful lives
Estimated net residualvalue rate
Annualdepreciation rateBuildings and constructionsStraight-line method20-40 years0%2.5%-5%Mechanical equipmentStraight-line method3-20 years0%5%-33.3%O?ce and electronic equipmentStraight-line method3-5 years0%20%-33.3%
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2020Category
Depreciationmethod
Useful lives
Estimated net residualvalue rate
Annualdepreciation rateTransportation facilities (excluding ship)Straight-line method5 years0%20%ShipStraight-line method10-30 years5%/10%3%-9.5%
(3) Identication basis, valuation and depreciation method of xed assets under nancing lease
√Applicable □Not applicable
The fixed assets acquired under financing leases adopt the same depreciation policies for the provision for thedepreciation of leased assets as those of its own xed assets. Where it can be reasonably certain that the Company willobtain 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 leaseterm, 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 xed assets at theend 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 typesof necessary expenditures incurred during the construction period, the capitalized borrowing costs incurred prior to the timewhen the construction is brought to the expected conditions for use and other relevant costs.
The construction in progress is converted into xed assets after it reaches the expected conditions for use.25 Borrowing costs
√Applicable □Not applicable
Borrowing costs refer to the interest and other relevant costs of the Company due to borrowings, including the interest ofborrowings, the amortization of discount or premium, auxiliary expenses, exchange di?erences incurred by foreign currencyborrowings, etc.
The Group capitalizes the borrowing costs of acquisition or construction or production which may directly belong toassets that are eligible for capitalization; and other borrowing costs are included in the current prot or loss. Assets eligiblefor capitalization refer to xed assets, investment property, inventories and other assets which may reach their intended useor sale status only after long-time acquisition and construction or production activities.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements:
(1) The asset disbursements have already incurred;
(2) The borrowing costs have already incurred; and
(3) Purchase, construction or manufacturing activities that are necessary to prepare the asset for its intended use or
sale have already started;
Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible forcapitalization have reached the working condition for their intended use or sale. The borrowing costs incurred thereafter shallbe included in the current prot or loss.
During the period of capitalization, the capitalized amount on interest of each accounting period shall be determined inaccordance with the following provisions:
(1) The interest of special borrowings to be capitalized should be determined according to the actually incurred interest
expenses in the current period less the interest income on deposits or the investment income;
(2) The interest of general borrowings to be capitalized should be calculated by multiplying the weighted average of
asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the weighted averagerate of used general borrowings.
If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupteddue to the matters other than necessary procedures for such assets to reach the working conditions for its intended use orsale and such circumstance lasts for more than three months, the capitalization of borrowing costs should be suspended.Borrowing costs incurred during the interruption are recognized as the current prot or loss and continue to be capitalizeduntil the acquisition, construction or production of the asset restarts.26 Biological assets
□Applicable √Not applicable
27 Oil and gas assets
□Applicable √Not applicable
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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 benets may well ow into the Group and the costsof intangible assets can be measured reliably, and initially measured at costs. However, if the fair value of the intangibleassets acquired in the business combination not under common control can be reliably measured, it should be recognizedas intangible assets and measured at fair value separately. When the Company reconstructs its corporate system, for theintangible assets invested by the shareholders of the state-owned shares, the evaluation value conrmed by the state-ownedassets management department shall be served as the book value.The useful life of an intangible asset is determined based on the period during which it can bring economic benets tothe Group. If the said period cannot be predicted, it will be recognized as an intangible asset with indenite useful life.The useful lives of all kinds of intangible assets are determined as follows:
Useful lifeLand use rightLand useful livesSoftware use fees5 yearsProprietary technology10 years
The land use rights acquired by the Group are usually accounted as intangible assets. For the plants and other buildingsdeveloped and constructed by the Company, relevant land use rights and constructions shall be respectively accounted asintangible assets and xed assets. For externally purchased land and buildings, the related payments are distributed in theland use right and buildings; those di?cult to be distributed shall be all handled as xed assets.For the intangible assets with limited useful life, their amount shall be amortized at the straight-line method over itsuseful life. The Group will reexamine the useful lives and amortization method of intangible assets with limited useful lives,and make adjustments when necessary at the end of each year.
(2) Accounting policy of internal R & D expenditures
√Applicable □Not applicable
The Group's expenditures for its internal research and development projects are classied into research expendituresand development expenditures. The expenditures in research phase will be included in the current profit or loss onoccurrence. The development expenditures will be capitalized only when all of the following conditions are satisfiedsimultaneously: It is feasible technically to nish intangible assets for use or sale; It is intended to nish and use or sell theintangible assets; The usefulness of methods for intangible assets to generate economic benets shall be proved, includingbeing able to prove that there is a potential market for the products manufactured by applying the intangible assets or thereis a potential market for the intangible assets itself or the intangible assets will be used internally; It is able to nish thedevelopment of the intangible assets, and able to use or sell the intangible assets, with the support of su?cient technologies,nancial resources and other resources; and the expenditures attributable to the intangible asset during its developmentphase can be measured reliably. Development expenditures that do not meet the above conditions are included in thecurrent prot or loss on occurrence.30 Asset impairment
√Applicable □Not applicable
The Group recognizes the asset impairment under the following methods except for inventories, contract assets andassets related to contract cost, deferred income tax and nancial assets:
The Group shall, on the balance sheet date, make a judgment on whether there is any indication that the assets mayimpair. 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 theyhave signs of impairment or not. Impairment tests for intangible assets not reaching usable condition shall be conductedevery year.
The recoverable amounts of assets are the higher of their fair values less costs to sell and the present values of thefuture cash ows expected to be derived from the assets. The Group shall, on the basis of single item assets, estimate therecoverable amount. Where it is di?cult to do so, it shall determine the recoverable amount of the group assets on the basisof the asset group to which the asset belongs. The recognition of an asset group shall base on whether the main cash inowgenerated from the asset group is independent of those generated from other assets or other group assets.
Where the recoverable amount of an asset or an asset group is lower than its book value, the book value of the asset orasset group shall be written down to their recoverable amounts. The write-downs are recorded into the current prot or lossand the provision for asset impairment are made accordingly at the same time.
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2020When the Company makes an impairment test of goodwill, it shall, as of the purchasing day, apportion the book value ofthe goodwill formed by business combination to the relevant asset groups by a reasonable method. Where it is di?cult to doso, it shall be apportioned to the relevant portfolio of asset groups .The related asset group or combination of asset groupsshall be the asset group or combination of asset groups that can benet from the synergy e?ect of business combination,and shall be smaller than the reporting segments as determined by the Group.When making an impairment test on the relevant asset groups or combination of asset groups containing goodwill, if anyindication shows that the asset groups or combinations of asset groups related to the goodwill may be impaired, the Groupshall rst conduct an impairment test on the asset groups or combinations of asset groups not containing goodwill, calculatethe recoverable amount and recognize the corresponding impairment loss. Then, the Group shall conduct an impairment teston the asset groups or asset groups portfolio containing goodwill, and compare it book value and recoverable amount: if therecoverable amount is lower than book value, the amount of impairment losses should be rstly used to deduct book valueof goodwill allocated to the asset group or the asset group portfolio, and then deduct book value of other assets according tothe proportion of the book value of other assets other than the goodwill in the asset group or the asset group portfolio.Once the loss of assets impairment is recognized, it is not allowed to be reversed even if the value can be recovered insubsequent period.31 Long-term deferred expenses
√Applicable □Not applicable
Long-term deferred expenses shall be amortized at the straight-line method, and the amortization period is set out asfollows:
Amortization periodImprovement of xed assets acquired under the operating leaseExpected benecial period
32 Contract liabilities
(1) Recognition method of contract liabilities
√Applicable □Not applicable
The Group presents contract assets or liabilities in the balance sheet according to the relationship between theperformance of contract obligations and customer payments. After o?setting the contract assets and contract liabilities underthe same contract, the Group presents them in net amount.
Contract liabilities
Contract liability refers to the obligation to transfer goods or services to customers for the consideration received orreceivable from customers, such as the money received by enterprises before transferring the promised goods or services.33 Employee compensation
Employee compensations refer to multiform remuneration or compensation o?ered of the Group in order to get servicesprovided by its employees or sever the labor relation. Employee compensation mainly includes short-term employeecompensation, post-employment benets, dismissal benets and other long-term employee benets. The welfare providedby the Company to employees' spouses, children, dependents, family dependants of the deceased employee and otherbenecial owners also belong to employee compensation.
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 isrecognized as liabilities and includes them in the current prot or loss or the related asset costs.
(2) Accounting treatment of post-employment benets
√Applicable □Not applicable
The employees of the Group participated in the endowment insurance and unemployment insurance managed by thelocal government, and also participated in the enterprise annuity, and the corresponding expenses were included in therelevant asset costs or the current prot or loss when incurred.
(3) Accounting treatment of termination benets
□Applicable √Not applicable
(4) Accounting treatment of other long-term employee benets
□Applicable √Not applicable
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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 samecontrol, when the obligations related to contingencies meet the following conditions, the Group recognizes them as estimatedliabilities:
(1) This obligation is a present obligation of the Group;
(2) The performance of such obligation is likely to result in outow of economic benets from the Group;
(3) The amount of the obligation can be measured reliably.
The estimated liabilities are initially measured as the best estimate of expenses required for the performance of relevantpresent obligations by considering comprehensively the risks with respect to contingencies, uncertainties and the time valueof money. On each balance sheet date, the Group shall review the book value of estimated liabilities. The Company shallmake corresponding adjustments to reect the current best estimate if there is any conclusive evidence indicating that suchbook value cannot reect the current best estimate.
36 Share-based payment
□Applicable √Not applicable
37 Preferred shares, perpetual bonds and other nancial instruments
√Applicable □Not applicable
After the maturity of the perpetual bonds issued by the Group, the Group has the right to extend them for an unlimitednumber of times. For the coupon interest of the perpetual bonds, the Group has the right to postpone the payment, and thegroup has no contractual obligation to pay cash or other nancial assets. They are classied as equity instrument.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 fullls the performance obligation in the contract, that is, when the customerobtains control over the relevant goods or services. The acquisition of control of relevant goods or services means to be ableto dominate the use of the goods or the rendering of the services and obtain almost all the economic benets from them.
Manufacturing contracts on large-sized port equipment, heavy equipment and steel structure products
The manufacturing contracts on large-sized port equipment, heavy equipment and steel structure products betweenthe Group and customers usually only include the performance obligations of transferring large-sized port machinery andequipment, heavy equipment and steel structure products customized for customers.
The large-sized port equipment, heavy equipment and steel structure products provided by the Group during theperformance of the contract are irreplaceable, however, most of the large-sized port equipment, heavy equipment salescontracts and the manufacturing contracts of some steel structure products do not stipulate that the Group has the rightto collect money for the performance part that has been completed so far in the whole contract period. This part of thecontract does not meet the performance obligation conditions within a certain period of time, and the Group takes it asthe performance obligation at a certain point of time. The Group generally recognizes the revenue at the time point ofcontrol transfer of relevant port machinery and equipment, heavy equipment and steel structure products on the basis ofcomprehensive consideration of the following factors: the current right to receive payment of goods, the transfer of main risksand rewards in the ownership of goods, the transfer of legal ownership of goods, the transfer of physical assets of goods,and the acceptance of the goods by customers.
In addition, based on the terms of sales contracts on individual large-sized port equipment and heavy equipment andthe manufacturing contracts on some steel structure products, the Group has the right to collect money for the performancepart that has been completed so far during the whole contract period. The Group takes it as the performance obligation toperform in a certain period of time, and recognizes the revenue according to the performance progress. Based on inputmethod, the Group determines the corresponding performance progress of large-sized port equipment and heavy equipmentcontracts according to the proportion of the cost incurred in the total estimated cost. By output method, the Group determinesthe performance progress of the steel structure manufacturing contract according to the proportion of the accumulatedprocessing tons to the estimated total processing tons.
Contracts on rendering of shipping and lifting services
The service contracts between the Group and its customers mainly involve special shipping services and hoistingservices. The revenue of special shipping services rendered by the Group is recognized by time period method, and theprogress of performance obligations is determined according to the proportion of the number of days transported in the total
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2020estimated days of transportation. The revenue of shipping service shall be recognized when the service is completed.Material sales contractThe material sales contract between the Group and customers usually only includes the performance obligation oftransferring spare parts and other materials. The Group generally recognizes the revenue at the time of control transfer ofrelevant spare parts and other materials on the basis of comprehensive consideration of the following factors: the currentright to receive payment of goods, the transfer of main risks and rewards in the ownership of goods, the transfer of legalownership of goods, the transfer of physical assets of goods, and the acceptance of the goods by customers.Rendering of building servicesThe building service contract between the Group and customers usually includes the performance obligation ofinfrastructure construction. As the customer can control the assets under construction during the performance by the Group,the Group takes them as the performance obligations within a certain period of time, and recognizes the revenue accordingto the performance progress, except that the performance progress cannot be reasonably determined. By input method,the Group determines the performance progress of the services based on the cost incurred. If the performance progresscannot be reasonably determined and the cost incurred by the Group is expected to be compensated, the revenue shall berecognized according to the cost amount incurred until the performance progress can be reasonably determined.Build and transfer contract (BT contract)Activities under the BT contracts usually include build and transfer. With respect to the building services provided by theGroup, during the building period, the revenue of construction service contracts is recognized in accordance with the aboveaccounting policies. The construction contract revenue is measured at the fair value of the consideration receivable, and the“long-term receivables” are recognized and measured at the same time by e?ective interest rate method and the amortizedcost, and o?set upon receipt of payment of the project owner.Franchise contract (“BOT” contract)The activities under BOT contract usually include build, operate and transfer. At the build stage, the contract revenueof construction services shall be recognized in accordance with the above accounting policies for providing build servicecontracts. The revenue of construction contract is measured at the fair value of the consideration received or receivable, andthe nancial 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 nancial assets from the contract awarding party, thenancial 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 notconstitute an unconditional right to receive cash, the Group recognizes the intangible assets while recognizing the revenue,and amortizes it by tra?c ow method or straight-line method in the period from the date of completion acceptance of theproject 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, therevenue from construction services will not be recognized; they are respectively recognized as nancial assets or intangibleassets 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 orrepair expenses incurred shall be recognized as current expenses. Daily maintenance or repair expenses incurred shall berecognized as current expenses.According to the provisions of the contract, in order to maintain a certain service capacity of the relevant infrastructureor maintain a certain state of use before it is handed over to the contract awarding party, the current obligations undertakenby the Group in the estimated expenses are recognized as an estimated liability.Variable considerationIf there is variable consideration in the contract, the Group shall determine the best estimate of variable considerationaccording to the expected value or the most likely amount, but the transaction price including variable consideration shallnot exceed the amount that the accumulated recognized revenue is highly unlikely to have a signicant reversal when therelevant uncertainty is eliminated. On each balance sheet date, the Group re-estimates the amount of variable considerationto be included in the transaction price.Warranty obligationsAccording to the contract and legal provisions, the Group provides quality assurance for the goods sold or the assetsbuilt. For the guarantee type quality assurance that the goods sold to customers meet the established standards, theCompany shall perform accounting treatment in accordance with Note VII. For the service quality assurance for a separateservice provided in addition to guaranteeing that the goods sold meet the established standards, the Group shall take it asa single performance obligation, allocate part of the transaction price to the service quality assurance according to relativeproportion of the single selling price of the goods and service quality assurance, and recognize the revenue when thecustomer acquires service control right. In assessing whether quality assurance provides a separate service in addition toensuring that the goods sold meet established standards, the Group shall consider whether the quality assurance is legalrequirement, quality assurance period and the nature of the Group’s commitment to perform the tasks.Principal responsible person/agentThe Group determines whether it is the principal responsible person or the agent in the transaction according to whether
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it has the right to control the goods or services before transferring them to customers. In case the Group can control thegoods and other products before transferring them to customers, the Group shall be the principal responsible person andrecognize the revenue according to the total consideration received or receivable. Otherwise, the Group shall be the agentand recognize the revenue according to the amount of commission fees or handling charges that it is expected to be entitledto receive, and the amount shall be recognized according to the net amount of the total consideration received or receivableafter deducting the price payable to other relevant parties, or according to the xed commission amount or proportion.Contract changesWhen 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 reects the separate price of the new goods or construction services, the Group will take suchcontract 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, theGroup will regard it as the termination of the original contract, in the meanwhile, the non-performance part of the originalcontract 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, theGroup will take the changes as an integral part of the original contract for accounting treatment. As for the impact on therecognized revenue, the current revenue shall be adjusted on the date of contract change.
(2) Di?erences in revenue recognition accounting policies caused by di?erent business models of similar businesses
□Applicable √Not applicable
39 Contract cost
√Applicable □Not applicable
The Group’s assets related to contract cost include contract performance cost and contract acquisition cost. Accordingto the liquidity, they are presented in inventories, other current assets and other non-current assets respectively.If the incremental cost incurred by the Group to get the contract is expected to be recovered, it shall be recognized asan asset as the contract acquisition cost, unless the amortization period of the asset does not exceed one year.The cost incurred by the Group in performing the contract, which is not applicable to the specification scope ofinventories, xed assets or intangible assets and meets the following conditions simultaneously, shall be recognized as anasset as the contract performance cost:
(1) The cost is directly related to a current or expected contract, including direct labor, direct materials, manufacturing
expenses (or similar expenses), costs clearly borne by the customer and other costs incurred solely as a result of thecontract;
(2) The cost increases the enterprise’s resources for fullling its performance obligations in the future;
(3) The cost is expected to be recovered.
The Group’s assets related to contract cost are amortized on the same basis as the recognition of income related to theassets, and are included in the current prot or loss.
If the book value of the assets related to contract cost is higher than the di?erence between the following two items, theGroup will make provision for impairment of the excess part and recognize it as the loss of asset impairment:
(1) The remaining consideration expected to be obtained by the enterprise due to the transfer of goods or services
related to the assets;
(2) The cost expected to be incurred for the transfer of relevant goods or services
If the factors of impairment in the previous period change later, so that the di?erence between (1) and (2) is higher thanthe book value of the asset, the original provision for impairment of the asset shall be reversed and included in the currentprot or loss, but the book value of the asset after reversal shall not exceed the book value of the asset on the reversal datewithout 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 reliablycalculated, and the following conditions are met synchronously.
(a) Revenue from sales of large-scale port equipment, ocean heavy equipment, product of steel structure andconstruction 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 e?ective interest rate for others to use the monetary fundsof 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 tothe construction projects for which the Group is responsible, during the construction period, in accordance with principals ofthe construction contract, when the outcome can be reliably estimated, the construction contract revenue is measured at the
8383
2020fair value of the consideration receivable, with long-term receivables recognized at the same time and o?set upon receipt ofpayment 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 governmentsubsidies, and is likely to receive the government subsidies. If a government subsidy is a monetary asset, it shall bemeasured at the amount received or receivable. If a government subsidy is a non-monetary asset, it shall be measured at itsfair value; and if its fair value cannot be obtained in a reliable way, it shall be measured at a nominal amount.
If the government subsidies shall be used for the construction or the generation in otherwise of the long-term assets asrequired by the government documents, they are the assets-related government subsidies; If government documents haveno relevant provisions, and such government subsidies are based on the condition of the construction or the generation inotherwise of the long-term assets judged on the basis of basic conditions required for obtaining such government subsidies,they shall be deemed as the assets-related government subsidies, other government subsidies in addition to the said onesshall be deemed as the income-related government subsidies.
Income-related government subsidies which are used to compensate for relevant costs or losses in subsequent periodswill be recognized as deferred income, and will be included in the current prot or loss or be used to write o? relevant costsin the period when relevant costs or losses are recognized.
If assets-related government subsidies are recognized as deferred income, they shall be included in profit or lossby stages by a reasonable and systematic method within the useful lives of relevant assets. (However, the governmentsubsidies measured at nominal amounts are directly included in the current prot or loss); if the relevant assets are sold,transferred, scrapped or damaged before the end of their useful lives, the undistributed balance of relevant deferred incomeis transferred to the prot or loss from the current period of asset disposal.41 Deferred income tax assets/deferred income tax liabilities
√Applicable □Not applicable
Income tax includes the income tax of the current period and deferred income tax. Except that the adjusted goodwillarising from business combination or the deferred income tax related to transactions or events directly recognized inshareholder’s equity shall be included in shareholder’s equity, other current income tax and deferred income tax shall beincluded in current prot 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 Groupin 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 di?erencebetween book value of assets and liabilities on the balance sheet date and tax base, as well as the balance between thebook value of items which have not been recognized as assets or liabilities but the tax base can be determined according tothe tax law and the tax base.
Taxable temporary di?erences are recognized as deferred income tax liabilities, except that:
(1) Taxable temporary di?erences are generated in the following transactions: the initial recognition of goodwill, or the
initial recognition of assets or liabilities arising from transactions with the following characteristics: the transaction is nota business combination and will not a?ect accosting prots, nor a?ect the taxable income or deductible losses when thetransaction occurs.
(2) For taxable temporary di?erences related to the investments in subsidiaries, joint ventures and associates, the time
for the reversal of the taxable temporary di?erences can be controlled and the taxable temporary di?erences are likely not tobe reversed in the foreseeable future.
For deductible temporary differences, deductible losses and tax credits that can be carried forward to subsequentperiods, deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probable to beavailable against the deductible temporary di?erences, deductible losses and tax credits, unless the deductible temporarydi?erences arise from the following transactions:
(1) The deductible temporary difference is generated in the following transaction: the transaction is not a business
combination and it will a?ect neither accounting prots nor the taxable income (or deductible losses) when occurred.
(2) For the deductible temporary di?erences arising from investments in subsidiaries, associates and joint ventures,
the deferred income tax assets will be accordingly recognized when meeting the following conditions at the same time:
the temporary di?erences may be reversed in the foreseeable future and they can be used to o?set the taxable income ofdeductible temporary di?erences in the future.
On the balance sheet date, the Company shall measure deferred income tax assets and deferred income tax liabilitiesat the applicable tax rate during the period for expected recovery of assets or settlement of liabilities and reect the impactsof the income tax by means of expected recovery of assets or settlement of liabilities on the balance sheet date.
On the balance sheet date, the Group reviews the book value of deferred income-tax assets. If it is unlikely to obtainsu?cient taxable income to o?set the benet of the deferred income-tax assets, the book value of the deferred income-taxassets will be written down. On the balance sheet date, the Group re-evaluates unrecognized deferred income tax assets,
8484
and deferred income tax assets are recognized to the extent that it is likely to obtain su?cient taxable income for all or partof the deferred income tax assets to be reversed.Deferred income tax assets and deferred income tax liabilities meeting the following conditions simultaneously will bepresented by net amount after o?set: when the Company has the statutory right to balance current income tax assets andcurrent income tax liabilities with net amounts, and deferred income tax assets and deferred income tax liabilities are relatedto the income tax which are imposed on the same taxpayer by the same tax collection authority or on di?erent taxpayers,but, in each important future period in connection with the reversal of deferred income tax assets and liabilities, the involvedtaxpayer intends to settle the current income tax assets and liabilities on a net amount basis, or obtain assets at the time ofdischarging liabilities.42 Lease
(1) Accounting treatment methods of operating lease
√Applicable □Not applicable
Lease under which all the risks and rewards related to the ownership of assets are materially transferred is recognizedas nancing lease, with the rest as operating lease.As the leasee of operating leaseRental payment for operating lease in each stage during the rental period should be included into related asset costs orthe current prot or loss by the straight-line method;As a lessor of operating leaseRental income from the operating lease in each stage during the lease term should be recognized as the current protor loss by the straight-line method.
(2) Accounting treatment methods of nance lease
√Applicable □Not applicable
As the lessee of nance lease
At the commencement of the lease term, assets acquired under nance lease shall be recorded at the lower of their fairvalues 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 di?erences between book value of the leased assetsand the long-term payables as unrecognized nance charges, which are amortized at the e?ective interest method in eachstage during the lease term. The contingent rental is included in the current prots or losses when actually occurring.
Leaseback
Leaseback for nancing purposes will be treated as a whole, which is accounted by mortgage loan, on the condition thatasset sale is related to lease transaction and can be repurchased when the lease term expires, that is to say, the accountingtreatment 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.Prot 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 productsor the current profit or loss, and includes them in special reserves at the same time. The costs are handled separatelydepending on whether they form fixed assets: when withdrawn work safety expenses are used within the prescribedrange and belong to expenses, such costs shall be directly deducted from special reserves; where a xed asset is formed,the expenses incurred through collection are recognized as the xed asset when it is ready for its intended use, and theequivalent special reserve is written o? and the equivalent accumulated depreciation is conrmed.
3.Fair value measurement
The Group measures the derivative financial instruments and equity instrument investment at fair value on eachbalance sheet date. Fair value is the price received from sales of an asset or paid for transfer of a liability by a marketparticipant in an orderly transaction on the measurement date. The Group measures the relevant assets or liabilities atfair value, assuming that the sale of assets or transfer of liabilities is orderly carried out in the main market of the relevantassets or liabilities. Where there is no main market, the Group should assume that the transaction is carried out in the mostadvantageous market related to the assets or liabilities. The main market (or the most advantageous market) is the tradingmarket that can be entered by the Company on the measurement date. The Group adopts the assumption used for realizingits utmost economic benet when the market participants price the asset or liability.
8585
2020When the Company measures non-financial assets at fair value, it should consider a market participant’s ability togenerate economic benefit by using the asset or by selling it to another market participant who will use the asset in itshighest and best use.
When the Group uses the valuation techniques, it has considered the valuation techniques that are applicable in thecurrent situation and are supported by enough available data and other information. The Company gives priority to theobservable inputs when using valuation techniques, and those unobservable inputs are used only under the circumstancewhen 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 themeasurement result of fair value shall subject to the lowest level which the input having great significance to the entiremeasurement of fair value belongs to: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identical assetsor liabilities available on the measurement date; Level 2 inputs refer to inputs that are directly or indirectly observable for theassets or liabilities other than Level 1 inputs; Level 3 inputs refer to unobservable inputs of the relevant assets or liabilities.
On each balance sheet date, the Group reevaluates the assets and liabilities continuously measured at fair value andrecognized in the nancial statements in order to determine whether there is a conversion among the levels of fair valuemeasurement.
4.Signicant accounting judgment and estimate
The preparation of financial statements requires the management to make judgments, estimates and assumptions.These judgments, estimates and assumptions will a?ect the reported amounts and disclosures of income, expenses, assetsand liabilities, and the disclosure of contingent liabilities on the balance sheet date. The results from the uncertainties ofthese assumptions and estimates may lead to signicant adjustments to the book amount of assets or liabilities that area?ected in the future.
Judgment
Determination of the performance progress of construction contracts (only applicable to transfer of control over a periodof time)
The Group determines the performance progress of the construction contracts by input method. To be more specic,the Group determines the performance progress according to the proportion of the cumulative actual construction costto the estimated total cost, while the cumulative actual cost includes the direct cost and indirect cost in the process oftransferring goods to customers. The Group believes that the construction contract price with customers is determined onthe basis of construction cost, and the proportion of the actual construction cost to the estimated total cost can truly reectthe performance progress of construction services. In view of the long duration of construction contracts, which may spanseveral accounting periods, the Group will recheck and revise the budget with the progress of the construction contracts, andadjust the amount of revenue recognized accordingly.
Uncertainty of estimation
The following are other key sources of the uncertainty of the key assumptions and estimates in the future on the balancesheet date, which may lead to major adjustments in the book value of the assets and liabilities of next scal year.
Impairment of nancial instruments and contract assets
The Group adopts the expected credit loss model to assess the impairment of financial instruments and contractassets. The application of the expected credit loss model requires signicant judgments and estimates. It must considerall reasonable and evidence-based information, including forward-looking information. In making such judgments andestimates, the Group infers expected changes in debtors' credit risk based on historical repayment data combined witheconomic policies, macroeconomic indicators, industry risks and other factors. Di?erent estimates may a?ect the provisionfor impairment, and the amount of impairment that has been provided may be not equal to the actual amount of futureimpairment losses.
Inventory impairments
The management shall estimate the net realizable value of inventories in time so as to estimate the provision fordepreciation of inventories. If any event or circumstance changes, it is necessary to use the estimate to make the provisionfor depreciation of inventories if the inventory is not likely to realize the relevant value. If the expected amount is di?erentfrom the original estimate, the relevant di?erence will a?ect the book value of the inventories and the impairment loss duringthe estimated change.
Impairment of non-current assets other than nancial assets (other than goodwill)
On the balance sheet date, the Group judges whether there are any signs of possible impairment of non-currentassets other than nancial assets. Non-current assets other than nancial assets are tested for impairment when there isan indication showing that their book amounts are irrecoverable. When the book value of an asset or asset group is higherthan the recoverable amount, that is, the higher of the net amount from fair value less the disposal expense and the presentvalue of the estimated future cash ow, it indicates that the impairment occurred. The net amount after the fair value minusthe disposal expenses is determined by reference to the sales agreement price of similar assets in the fair trade or theobservable market price, minus the incremental cost directly attributable to the disposal of the asset. When estimating thepresent value of future cash ows, management must estimate the expected future cash ows of the asset or asset groupand select an appropriate discount rate to determine the present value of future cash ows.
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Impairment of goodwillThe Group tests whether the goodwill is impaired at least annually. This requires an estimate of the present value ofthe future cash ows of the asset group or combination of asset groups to which goodwill is allocated. When estimatingthe present value of future cash flows, the Group needs to estimate the cash flow generated by future asset groups orcombination of asset groups, and select the appropriate discount rate to determine the present value of future cash ows.See Note VII (28) for details.Fair value of unlisted equity investmentsThe valuation of unlisted equity investments is an estimated future cash ow discounted at the current discount rateof other nancial instruments with similar contract terms and risk characteristics. This requires the Group to estimate theexpected future cash ow, credit risk, uctuation and discount rate; therefore, there is some uncertainty.44 Changes in signicant accounting policies and accounting estimates
(1) Changes in signicant accounting policies
√Applicable □Not applicable
The contentsand reasons ofthe changes ofaccounting policy
Examination and approval procedures
Remarks (the name and amount of the statement items
which subject to important inuence)
New revenuestandard
In 2017, the Ministry of Finance issued therevised “Accounting Standard for BusinessEnterprises No.14 – Revenue” (hereafterreferred to as “new revenue standard”). TheGroup has been made accounting treatmentaccording to the new standards since January1, 2020. According to the convergenceprovisions, the information of the comparableperiod will not be adjusted, and the di?erencebetween the rst day implementation of thenew standards and the current standards isretroactively adjusted to the retained earningsat the beginning of 2020.
The new revenue standard establishes a new revenuerecognition model for regulating the revenue generated bycontracts with customers. According to the new revenuestandard, the way of revenue recognition should reflect themode of the entity transferring goods or providing servicesto customers, and the amount of revenue should reflect theamount of consideration that the entity is expected to be entitledto due to the transfer of such goods and services to customers.In the meanwhile, the new revenue standard also regulates thejudgment and estimation of every link of revenue recognition.The new revenue standard requires that, on the enforcementdate of the contract, the subject should evaluate the contract,identify the individual performance obligations contained in thecontract, and determine whether the individual performanceobligations are performed within a certain period of time or ata certain point of time. If one of the following conditions is met,the performance obligation shall be performed within a certainperiod of time; otherwise, the performance obligation shall beperformed at a certain point of time: (I) The customer acquiresand consumes the economic benets brought by the enterprise’sperformance at the same time of the enterprise’s performance;(II) The customer can control the goods or services underconstruction during the performance of the contract by theenterprise; (III) The goods or services produced in the process ofperformance have irreplaceable uses, and the enterprise has theright to collect payment for the performance part that has beencompleted so far throughout the contract period. The Group onlyadjusts the cumulative impact of contracts not yet completedon January 1, 2020. For the contract changes before January1, 2020, the Group shall adopt the simplied treatment methodfor accounting treatment according to the final arrangementafter the contract change and the relevant provisions of the newstandard. For large-sized port machinery, heavy equipmentand steel structure products manufacturing business, theGroup recognized the revenue by the completion percentage ofconstruction contract before January 1, 2020. From January 1,2020, after analysis by the Group, the performance obligationscontained in the contracts of large-sized port machinery, heavyequipment and some steel structure products manufacturing didnot meet the above conditions for performance obligations withina certain period of time, therefore, based on the comprehensiveconsideration of various factors, the revenue was recognizedat the time of control transfer of related products. The abovechanges resulted in the adjustment of the balance sheets of theGroup and the Company as at January 1, 2020.
Other description
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2020The main impacts of the adjustments caused by the above changes in accounting policies on the nancial statementsare as follows:
The Group2020
Book valueDecember 31, 2019
Impact of new revenue standard
Book valueJanuary 1, 2020ReclassicationRemeasurementAccounts receivable4,966,175,528-3,539,747,9608,505,923,488Other receivables1,176,561,508-34,480,7931,211,042,301Inventories8,561,251,58012,434,158,62476,838,85821,072,249,062Outstanding payments forconstruction completed
12,434,158,624(12,434,158,624)--Contract assets--987,717,554987,717,554Deferred income tax assets486,197,635-282,425,445768,623,080Other non-current assets161,337,287- 899,448,7011,060,785,988Advances from customers(822,987,986)656,237,558-(166,750,428)Contract liabilities-(2,336,188,437)(7,404,631,245)(9,740,819,682)Amount settled for uncompleted work (1,679,950,879)1,679,950,879--Other current liabilitie--(30,770,358)(30,770,358)Surplus reserves(1,761,198,709)-143,572,545(1,617,626,164)Undistributed prots(3,651,851,383)-1,399,694,619(2,252,156,764)Minority equity(3,027,632,431)-71,475,128(2,956,157,303)
The Company2020
Book valueDecember 31, 2019
Impact of new revenue standard
Book valueJanuary 1, 2020ReclassicationRemeasurementAccounts receivable11,188,977,446-3,208,920,44914,397,897,895Other receivables7,850,320,715-34,480,7937,884,801,508Inventories8,605,357,5577,399,709,68999,402,08316,104,469,329Outstanding payments forconstruction completed
7,399,709,689(7,399,709,689)--Contract assets--817,100,259817,100,259Deferred income tax assets461,638,248-250,834,238712,472,486Other non-current assets- - 899,448,701899,448,701Advances from customers(490,409,652)490,409,652--Contract liabilities-(2,543,435,528)(6,745,911,977)(9,289,347,505)Amount settled for uncompleted work(2,053,025,876)2,053,025,876--Surplus reserves(1,760,690,436)-143,572,545(1,617,117,891)Undistributed prots(3,835,099,435)-1,292,152,909(2,542,946,526)
(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 rst execution year since 2020
√Applicable □Not applicable
8888
Consolidated Balance Sheet
Unit: Yuan Currency: CNYItemDecember 31, 2019January 1, 2020AdjustmentsCurrent assets:
Monetary funds3,310,297,4513,310,297,451Settlement provisionsLending fundsHeld-for-trading nancial assets1,739,792,0621,739,792,062Derivative nancial assetsNotes receivable5,650,0005,650,000Accounts receivable4,966,175,5288,505,923,4883,539,747,960Receivables nancing406,408,604406,408,604Advances to suppliers935,878,777935,878,777Premiums receivableReinsurance accounts receivableReserves for reinsurance contract receivableOther receivables1,176,561,5081,211,042,30134,480,793Including: Interest receivable- -
Dividend receivable1,072,3901,072,390Financial assets purchased under agreements to resellInventories8,561,251,58021,072,249,06212,510,997,482Outstanding payments for construction completed12,434,158,624--12,434,158,624Contract assets987,717,554987,717,554Assets held for saleNon-current assets due within one year1,313,203,5811,313,203,581Other current assets720,183,574720,183,574Total current assets35,569,561,28940,208,346,4544,638,785,165Non-current assets:
Disbursement of loans and advancesDebt investmentOther debt investmentsLong-term receivables5,227,728,4205,227,728,420Long-term equity investments2,873,673,7452,873,673,745Other equity instrument investment61,981,26861,981,268Other non-current nancial assetsInvestment properties418,425,533418,425,533Fixed assets21,454,967,29921,454,967,299Construction in progress4,380,489,8884,380,489,888Productive biological assetsOil and gas assetsRight-of-use assetsIntangible assets3,506,541,3663,506,541,366Development expendituresGoodwill268,434,934268,434,934Long-term deferred expenses1,444,6361,444,636
8989
2020ItemDecember 31, 2019January 1, 2020AdjustmentsDeferred income tax assets486,197,635768,623,080282,425,445Other non-current assets161,337,2871,060,785,988899,448,701Total non-current assets38,841,222,01140,023,096,1571,181,874,146Total assets74,410,783,30080,231,442,6115,820,659,311Current liabilities:
Short-term borrowings22,001,319,38022,001,319,380Borrowings from the Central BankBorrowing fundsHeld-for-trading nancial liabilities7,312,7417,312,741Derivative nancial liabilitiesNotes payable3,420,945,4513,420,945,451Accounts payable7,869,378,3657,869,378,365Advances from customers822,987,986166,750,428-656,237,558Contract liabilities9,740,819,6829,740,819,682Amount settled for uncompleted work 1,679,950,879--1,679,950,879Financial assets sold for repurchaseDeposits from customers and interbankActing trading securitiesActing underwriting securitiesPayroll payable329,978,281329,978,281Tax payable144,506,742144,506,742Other payables711,389,996711,389,996Including: Interest payable
Dividends payable31,701,96531,701,965Fees and commissions payableDividend payable for reinsuranceLiabilities held for saleNon-current liabilities due within a year7,287,484,5137,287,484,513Other current liabilities30,770,35830,770,358Total current liabilities44,275,254,33451,710,655,9377,435,401,603Non-current liabilities:
Reserve fund for insurance contractsLong-term borrowings8,413,339,9868,413,339,986Bonds payableIncluding: preferred stock
Perpetual bondLease liabilitiesLong-term payables1,741,945,6361,741,945,636Long-term payroll payableEstimated liabilities484,000,772484,000,772Deferred income458,722,579458,722,579Deferred income tax liabilities89,856,72789,856,727Other non-current liabilities376,626,821376,626,821
9090
ItemDecember 31, 2019January 1, 2020AdjustmentsTotal non-current liabilities11,564,492,52111,564,492,521Total liabilities55,839,746,85563,275,148,4587,435,401,603Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)5,268,353,5015,268,353,501Other equity instrumentsIncluding: preferred stock
Perpetual bondCapital reserves4,834,854,3324,834,854,332Less: treasury stockOther comprehensive income23,530,45123,530,451Special reserves3,615,6383,615,638Surplus reserves1,761,198,7091,617,626,164-143,572,545General risk preparationUndistributed prots3,651,851,3832,252,156,764-1,399,694,619Total owners' equities attributable to the owners of parentcompany
15,543,404,01414,000,136,850-1,543,267,164Minority equity3,027,632,4312,956,157,303-71,475,128Total owners’ equity (or shareholders' equity)18,571,036,44516,956,294,153-1,614,742,292Total liabilities and owners’ equity (or shareholders'equity)
74,410,783,30080,231,442,6115,820,659,311Notes to the adjustment of each item:
□Applicable √Not applicable
Balance Sheet of the Parent Company
Unit: Yuan Currency: CNYItemDecember 31, 2019January 1, 2020AdjustmentsCurrent assets:
Monetary funds2,009,711,4622,009,711,462Held-for-trading nancial assets717,766,887717,766,887Derivative nancial assetsNotes receivable5,650,0005,650,000Accounts receivable11,188,977,44614,397,897,8953,208,920,449Receivables nancing372,373,708372,373,708Advances to suppliers2,516,366,7302,516,366,730Other receivables7,850,320,7157,884,801,50834,480,793Including: Interest receivable
Dividend receivableInventories8,605,357,55716,104,469,3297,499,111,772Outstanding payments for construction completed7,399,709,689--7,399,709,689Contract assets817,100,259817,100,259Assets held for saleNon-current assets due within one year16,068,80016,068,800Other current assets242,069,645242,069,645Total current assets40,924,372,63945,084,276,2234,159,903,584
9191
2020ItemDecember 31, 2019January 1, 2020AdjustmentsNon-current assets:
Debt investmentOther debt investmentsLong-term receivables349,516,318349,516,318Long-term equity investments8,748,485,7298,748,485,729Other equity instrument investment61,981,26861,981,268Other non-current nancial assetsInvestment properties418,425,533418,425,533Fixed assets4,484,852,6944,484,852,694Construction in progress352,334,608352,334,608Productive biological assetsOil and gas assetsRight-of-use assetsIntangible assets1,537,053,3081,537,053,308Development expendituresGoodwillLong-term deferred expensesDeferred income tax assets461,638,248712,472,486250,834,238Other non-current assets899,448,701899,448,701Total non-current assets16,414,287,70617,564,570,6451,150,282,939Total assets57,338,660,34562,648,846,8685,310,186,523Current liabilities:
Short-term borrowings16,511,846,09916,511,846,099Held-for-trading nancial liabilitiesDerivative nancial liabilitiesNotes payable4,115,677,1234,115,677,123Accounts payable4,097,874,3904,097,874,390Advances from customers490,409,652--490,409,652Contract liabilities9,289,347,5059,289,347,505Amount settled for uncompleted work 2,053,025,876--2,053,025,876Payroll payable312,443,598312,443,598Tax payable24,536,75924,536,759Other payables1,223,412,2121,223,412,212Including: Interest payable--
Dividends payable352,598352,598Liabilities held for saleNon-current liabilities due within one year5,454,698,3225,454,698,322Other current liabilitiesTotal current liabilities34,283,924,03141,029,836,0086,745,911,977Non-current liabilities:
Long-term borrowings6,446,433,3196,446,433,319Bonds payableIncluding: preferred stock
Perpetual bond
9292
ItemDecember 31, 2019January 1, 2020AdjustmentsLease liabilitiesLong-term payablesLong-term payroll payableEstimated liabilities470,724,247470,724,247Deferred income329,345,661329,345,661Deferred income tax liabilitiesOther non-current liabilities21,272,92521,272,925Total non-current liabilities7,267,776,1527,267,776,152Total liabilities41,551,700,18348,297,612,1606,745,911,977Owners’ equity (or shareholders’ equity):
Paid-in capital (or share capital)5,268,353,5015,268,353,501Other equity instrumentsIncluding: preferred stock
Perpetual bondCapital reserves4,914,468,6834,914,468,683Less: treasury stockOther comprehensive income8,348,1078,348,107Special reservesSurplus reserves1,760,690,4361,617,117,891-143,572,545Undistributed prots3,835,099,4352,542,946,526-1,292,152,909Total owners’ equity (or shareholders' equity)15,786,960,16214,351,234,708-1,435,725,454Total liabilities and owners’ equity (or shareholders'equity)
57,338,660,34562,648,846,8685,310,186,523Notes 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. Taxes1 Main tax categories and tax ratesMain tax categories and tax rates
√Applicable □Not applicable
Category of taxBasis of tax computationTax rate
VAT
VAT is applicable to thesales of the Group’sproducts
The taxable income from the sales of the products in domestic market is subjectto the output tax as per 13%; the products for export adopt the method of “taxexemption, tax deduction and tax reimbursement” and the applicable tax rate is13%. The Group’s income from the marine transport is applicable to VAT, andthe output tax is calculated as per 9%; the income from leasing of the equipmentis applicable to VAT and the output tax is calculated as per 13% of the taxableincome; the income from the sales of the equipment is applicable to the simplecollection measures of VAT and the tax rate is subject to the reduced tax rateof 2%; the Group’s income from the leasing of the housing is applicable to thesimple collection measures of VAT and the tax rate is 5%; the item “B-T” isapplicable 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 ofinput tax deductible, except for the applicable VAT’s simple collection method.
9393
2020Category of taxBasis of tax computationTax rateConsumption tax//Sales tax//Urban maintenance andconstruction tax
VAT paid
Calculated and paid according to 7% and 3% of the actual turnover tax paidrespectively.
Enterprise income tax
The enterprise incometax is calculated and paidin accordance with theEnterprise Income Tax Lawof People’s Republic ofChina (hereinafter referredto as the “Income TaxLaw”).
The enterprise income tax is calculated and paid in accordance with the EnterpriseIncome Tax Law of People’s Republic of China (hereinafter referred to as the“Income Tax Law”). In accordance with relevant regulations in the AdministrativeMeasures for Certication of New and High Technology Enterprises (GKFH [2016]No.32), the Guidelines for the Administration of Qualification Accreditation ofHigh-tech Enterprises (GKFH [2016] No.195), and the Circular on Announcingthe Recognition List of the Second Batch of High-tech Enterprises of Shanghai in2017, the Company was awarded the High-tech Enterprise Certicate (CerticateNumber: GR201831002345) in November 2017 with the valid term of 3 years.The application for new certicate in 2020 has been publicized. The Companyactually applied the enterprise income tax rate of 15% this year (2019: 15%).Where there are taxpayers with di?erent enterprise income tax rates, the disclosure shall be stated
√Applicable □Not applicable
Name of taxpayerIncome tax rate (%)The Company15%Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd.25%Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd.16.50%Shanghai Zhenhua Shipping Co., Ltd25%Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.25%Shanghai Zhenhua Heavy Industries Group (Nantong) Transmitter Co., Ltd.15%ZPMC Electric Co., Ltd.15%Shanghai Zhenhua Ocean Engineering Service Co., Ltd25%ZPMC Machinery Equipment Services Co., Ltd.25%Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co., Ltd.25%Shanghai Port Machinery Heavy Industry Co., Ltd25%ZPMC Zhangjiagang Port Machinery Co., Ltd.25%ZPMC Qidong Marine Engineering Co., Ltd.25%Jiahua Shipping Co., Ltd. 16.50%Zhenhua Pufeng Wind Energy (HongKong) Co., Ltd.16.50%CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd15%Nanjing Ninggao New Channel Construction Co., Ltd25%CCCC Investment & Development Qidong Co., Ltd.25%CCCC Liyang Urban Investment and Construction Co., Ltd.25%CCCC (Huaian) Construction Development Co., Ltd.25%CCCC Zhenjiang Investment Construction Management Development Co., Ltd.25%CCCC Rudong Construction Development Co., Ltd.25%ZPMC Netherlands Co?peratie U.A.25%ZPMC Netherlands B.V.25%Verspannen B.V.25%ZPMC Espana S.L.30%ZPMC Italia S.r.l24%ZPMC GmbH Hamburg32.25%ZPMC Lanka Company (Private) Limited24%
9494
Name of taxpayerIncome tax rate (%)ZPMC North America Inc.8.84%ZPMC Korea Co., Ltd.20%ZPMC Engineering Africa (Pty) Ltd.28%ZPMC Engineering (India) Private Limited22%ZPMC Southeast Asia Holding Pte. Ltd.17%ZPMC Engineering (Malaysia) Sdn. Bhd.24%ZPMC Australia Company (Pty) Ltd.30%ZPMC Brazil Servi?o Portuários LTDA25%ZPMC Limited Liability Company20%ZPMC NA East Coast lnc.8.84%ZPMC Middle East FZE0%ZPMC UK LD20%Greenland Heavylift (Hong Kong) Limited16.5%GPO Grace Limited0%GPO Amethyst Limited0%GPO Sapphire Limited0%GPO Emerald Limited0%GPO Heavylift Limited0%GPO Heavylift AS0%GPO Heavylift Pte Ltd17%ZPMC Latin America Holding Corporation25%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 O?shore 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-techEnterprise Certicate (No. GR201932001426) in 2019, with the valid term of 3 years. Shanghai Zhenhua Port MachineryHeavy Industries Co., Ltd. was recognized as a hi-tech enterprise in December, 2019 and won the Hi-tech EnterpriseCerticate (No.: GR201931004259) with the valid term of 3 years. The company's tax rate was 15% last year and 15% thisyear. Shanghai Zhenhua Heavy Industries Electric Co., Ltd was recognized as a hi-tech enterprise in November, 2017 andwon the Hi-tech Enterprise Certicate (No.: GR202031001911) after reexamination in November, 2020, with the valid termof 3 years. CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. was recognized as hi-tech enterprise in August,2015 and won the Hi-tech Enterprise Certicate (No. GR201832001451) after reexamination in 2018, with the valid term of 3years. In accordance with relevant provisions in Article 28 of the Income Tax Law, the actually applicable enterprise incometax rate for these companies in this year was 15% (2019: 15%).2 Tax preferences
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
VII.Notes to the main items of the consolidated nancial statements1 Monetary funds
√Applicable □Not applicable
9595
2020Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Cash on hand1,063,4721,469,655Bank deposits2,896,678,8683,066,555,321Other monetary funds50,332,396242,272,475Total2,948,074,7363,310,297,451Including: total amount of overseas deposits829,760,121888,185,684As at December 31, 2020, the other monetary funds, including the restricted deposit of RMB 50,332,396 (as atDecember 31, 2019: RMB 242,272,475), were the money appropriated that was collected from the overseas projects anddeposited in the overseas regulatory accounts and the cash deposit deposited for application to the bank for the letter ofcredit and letter of guarantee.As at December 31, 2020, the overseas monetary fund deposited by the Group was RMB 829,760,121 (Dec. 31, 2019:
RMB 888,185,684).As at December 31, 2020, the bank deposits were current deposits. The interest income from current deposits iscalculated as per the interest rate of the current deposits.2 Held-for-trading nancial assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Financial assets measured at fair valuethrough the current prot or loss
1,601,623,6501,739,792,062Including:
Equity instrument investmentDerivative nancial assets – equity options8,438,2788,438,278Investments in shares of listed companies1,593,185,3721,709,118,540Derivative nancial assets – forward foreignexchange contracts and options
22,235,244Financial assets designated to be measuredat fair value through the current prot or lossIncluding:
Total1,601,623,6501,739,792,062Other description:
√Applicable □Not applicable
(i) As at December 31, 2020, the held-for-trading nancial assets - derivative nancial assets – equity options held bythe Group refers to the fair value of the right obtained at the time of acquiring Greenland Heavylift (Hong Kong) Limited topurchase 1% of its equity of at the price of USD 1.(ii) As at December 31, 2020, the listed company share investments held by the Group include 5.88% equity of JiangxiHuawu Brake Co., Ltd., 1.59% equity of Qingdao Port International Co., Ltd., 1.16% equity of CRSC, 0.45% equity ofCOSCO Shipping Holdings Co., Ltd. and 0.001% equity of Shenwan Hongyuan Group Co., Ltd.3 Derivative nancial assets
□Applicable √Not applicable
4 Notes receivable
(1) Presentation of notes receivable by category
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Commercial acceptance bill753,0005,650,000Total753,0005,650,000
9696
(2) Notes receivable pledged by the Company at the end of the period
□Applicable √Not applicable
(3) Notes receivable endorsed or discounted by the Company at the end of the period and not yet due on the balance
sheet date
□Applicable √Not applicable
(4) Notes transferred to accounts receivable by the Company at the end of the period due to drawer’s failure in
performance
□Applicable √Not applicable
(5) Disclosure by bad debt calculation method
□Applicable √Not applicable
Individual provision for bad debts:
□Applicable √Not applicable
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to otherreceivables for disclosure:
□Applicable √Not applicable
(6) Provision for bad debts
□Applicable √Not applicable
(7) Notes receivable actually written o? in the current period
□Applicable √Not applicable
Other description
□Applicable √Not applicable
5 Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNYAgingDecember 31, 2020Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year6,178,309,1601- 2 years1,012,042,9532- 3 years314,526,234Over 3 years3- 4 years177,871,5944- 5 years334,395,800Over 5 years1,084,691,181Total9,101,836,922
(2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Category
December 31, 2020Book balanceProvision for bad debts
Book valueAmount
Proportion(%)
Amount
Proportion ofprovision (%)Provision for bad debts accrued onan individual basis
660,986,5107529,388,51080131,598,000Including:
Provision for bad debts by portfolio8,440,850,412931,345,383,157167,095,467,255IncludingTotal9,101,836,922/1,874,771,667/7,227,065,255
9797
2020
Category
December 31, 2019Book balanceProvision for bad debts
Book valueAmount
Proportion(%)
Amount
Proportion ofprovision (%)Provision for bad debts accrued onan individual basis
753,396,3857591,042,38578162,354,000Including:
Provision for bad debts by portfolio9,529,023,401931,185,453,913128,343,569,488IncludingTotal10,282,419,786/1,776,496,298/8,505,923,488Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNYName
December 31, 2020Book balance
Provision for baddebts
Proportion ofprovision (%)
Reason for provisionAccounts receivable 1277,613,400146,015,40053Counterparty nancial shortageAccounts receivable 2187,863,245187,863,245100Contract disputeAccounts receivable 393,954,00093,954,000100Counterparty nancial shortageAccounts receivable 442,979,94742,979,947100Contract disputeAccounts receivable 526,099,66526,099,665100Contract disputeAccounts receivable 611,037,00011,037,000100Contract disputeAccounts receivable 78,103,0438,103,043100Contract disputeAccounts receivable 86,980,3716,980,371100Contract disputeAccounts receivable 93,300,1793,300,179100Contract disputeAccounts receivable 102,236,4982,236,498100Contract disputeAccounts receivable 11819,162819,162100Contract disputeTotal660,986,510529,388,51080/
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 creditloss ratio %
Reason for provisionAccounts receivable 1324,708,000162,354,00050Counterparty nancial shortageAccounts receivable 2182,958,900182,958,900100Contract disputeAccounts receivable 3158,184,500158,184,500100Counterparty nancial shortageAccounts receivable 427,904,87027,904,870100Contract disputeAccounts receivable 526,911,14726,911,147100Contract disputeAccounts receivable 610,748,86910,748,869100Contract disputeAccounts receivable 77,815,5007,815,500100Contract disputeAccounts receivable 87,463,1747,463,174100Contract disputeAccounts receivable 93,582,1353,582,135100Contract disputeAccounts receivable 102,224,0132,224,013100Contract disputeAccounts receivable 11895,277895,277100Contract disputeTotal753,396,385591,042,385
9898
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to otherreceivables for disclosure:
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
The recovered or reversed provision for bad debts with signicant amount:
□Applicable √Not applicable
(4) Accounts receivable actually written o? in the current period
□Applicable √Not applicable
(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 andanalyzed as follows:
BalanceProvision for bad debts
Proportion in total balance ofaccounts receivable %Total accounts receivable of top 5 balances1,810,933,879432,753,77120
As at December 31, 2019, top 5 accounts receivable in terms of ending balance presented by debtor summarized andanalyzed as follows:
BalanceProvision for bad debts
Proportion in total balance ofaccounts receivable %Total accounts receivable of top 5 balances1,305,425,250367,432,65720
(6) Accounts receivable derecognized due to the transfer of nancial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Changes in the provision for bad debts of accounts receivable are as follows:
December 31,
2019
Adjustmentsfor changesin accountingpolicies
January 1,2020
Provision in2020
Reversal in2020
Reduction ofconsolidationscope
December 31,202020201,677,451,83699,044,4631,776,496,299416,571,263(279,106,645)(39,189,250)1,874,771,66720191,529,308,221111,908,3011,641,216,522206,632,546(170,397,232)-1,677,451,836
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
20202019Book balanceof estimated
default
Estimatedcredit lossratio (%)
Expected creditloss for the entireduration
Book balanceof estimateddefault
Estimatedcredit lossratio (%)
Expected creditloss for theentire durationWithin 1 year6,154,544,858 5293,763,0963,725,543,945291,032,7301-2 years965,250,72720190,547,180602,231,6071380,579,8612-3 years213,806,2342961,516,189449,964,0722089,520,6363-4 years177,715,23463111,926,196246,662,1622970,797,0464-5 years177,122,4004275,011,044175,572,09968119,983,513Over 5 years752,410,95981612,619,452690,257,09492634,495,665Total8,440,850,4121,345,383,1575,890,230,9791,086,409,451
9999
20206 Receivables nancing
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Bank acceptance bill362,006,319406,408,604Total362,006,319406,408,604
Increase or decrease and changes in fair value of receivables nancing in the current period:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to otherreceivables for disclosure:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Notes receivable that had been endorsed or discounted and not matured on the balance sheet date are as follows:
20202019Amountderecognized
Amount notderecognized
Amountderecognized
Amount notderecognizedBank acceptance bill571,531,799-738,496,754-7 Advances to suppliers
(1) Presentation of advances to suppliers by account age
√Applicable □Not applicable
Unit: Yuan Currency: CNYAccount age
December 31, 2020December 31, 2019AmountProportion (%)AmountProportion (%)Within 1 year486,471,38164603,532,662641-2 years192,424,83725267,030,956292-3 years48,275,668654,362,6446Over 3 years40,254,261510,952,5151Total 767,426,147100935,878,777100
Explanation of the reasons why the advances to suppliers with the aging over one year and a signicant amount is notsettled in time:
As at December 31, 2020, the advances to suppliers of the Company with the aging over one year was RMB280,954,766 (as at December 31, 2019: RMB 332,346,115), mainly the advances to suppliers for the procurement ofimported parts, which has not been yet settled because the purchased imported parts have not yet received.
(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 andanalyzed as follows:
AmountProportion in total advances to suppliers %Total advances to suppliers of top 5 balances140,561,79918
As at December 31, 2019, top 5 advances to suppliers in terms of ending balance presented by debtor summarized andanalyzed as follows:
AmountProportion in total advances to suppliers %Total advances to suppliers of top 5 balances354,954,21838
100100
Other description
□Applicable √Not applicable
8 Other receivablesItem presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Interest receivableDividends receivable1,072,390Other receivables913,410,1631,209,969,911Total913,410,1631,211,042,301
Other description:
□Applicable √Not applicable
Interest receivable
(1) Classication of interest receivable
□Applicable √Not applicable
(2) Signicant overdue interest
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem (or invested entity)December 31, 2020December 31, 2019CCCC Nanjing Tra?c Engineering Management Co., Ltd.1,072,390Total1,072,390
(5) Signicant 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: CNYAging December 31, 2020Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year836,659,9031-2 years26,116,2122-3 years82,447,437Over 3 years3-4 years193,114,1034-5 years1,556,265Over 5 years12,274,182Total1,152,168,102
101101
2020
(8) Classication by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Nature of fundsDecember 31, 2020December 31, 2019Unpaid taxes receivable558,720,119410,468,098Secured repayment164,124,678164,124,678Bid and performance bond88,706,025291,599,548Advance payment receivable on behalf ofthe third party
84,615,76595,480,544Money on call for product eld service33,945,80243,035,827Lease payment receivable33,434,66733,434,668Customs-related security deposit33,365,31438,241,878Sta? borrowings receivable20,309,05023,557,060Export rebates166,044214,352,290Deposit receivable10,0002,946,042Others134,770,638130,868,274Total1,152,168,1021,448,108,907
(9) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNYProvision for bad debts
Stage IStage IIStage III
TotalEstimated creditlosses over thenext 12 months
Expected credit loss forthe entire duration (nocredit impairment)
Expected credit loss forthe entire duration (creditimpairment has occurred)Balance as at January 1, 20209,710,907228,428,089238,138,996Balance as at January 1, 2020 incurrent period--Transferred to Stage II--Transferred to Stage III--Reversal to Stage II--Reversal to Stage IProvision in the current period1,281,3611,281,361Reversal in the current period-662,418-662,418Write-o? in the current periodCharge-o? in the current periodOther changesBalance as at December 31, 202010,329,850228,428,089238,757,939
Description of signicant changes in book balance of other receivables with changes in loss provision in the currentperiod
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly:
□Applicable √Not applicable
(10) Provision for bad debts
□Applicable √Not applicable
(11) Other receivables actually written o? in the current period
□Applicable √Not applicable
102102
(12) Top 5 other receivables in terms of ending balance presented by debtor
√Applicable □Not applicable
Unit: Yuan Currency: CNY
NameNature
December 31,
2020
Aging
Proportion in thetotal balance of otherreceivables (%)
Balance of provisionfor bad debts at theend of the yearOther receivables 1Secured repayment164,124,6783-4 years14164,124,678Other receivables 2Advance payment54,318,6814-5 years552,427,770Other receivables 3Performance bond34,800,0002-3 years3Other receivables 4
Lease paymentreceivable
33,434,668Within 1 year3Other receivables 5
Customs-relatedsecurity deposit
33,365,315Within 1 year3Total/320,043,342/28216,552,448
(13) Receivables involving government subsidies
□Applicable √Not applicable
(14) Other receivables derecognized due to transfer of nancial assets
□Applicable √Not applicable
(15) Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
9 Inventories
(1) Classication
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2020December 31, 2019Book balance
Provision for inventorydepreciation/Provision forimpairment of contractperformance cost
Book valueBook balance
Provision for inventorydepreciation/Provision forimpairment of contractperformance cost
Book valueRaw materials3,118,133,18554,960,4023,063,172,7833,370,311,93176,456,9713,293,854,960Goods in process20,113,138,980939,360,77819,173,778,20218,795,106,5461,021,070,13617,774,036,410Stock commodities14,573,887-14,573,8874,357,692-4,357,692Revolving materialsConsumptive biologicalassetsContract performancecost
74,314,244-74,314,244Total23,320,160,296994,321,18022,325,839,11622,169,776,1691,097,527,10721,072,249,062
(2) Provision for inventory depreciation and provision for impairment of contract performance cost
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31,
2019
Increase in the current periodDecrease in the current period
December 31,2020ProvisionOther
Reversal or write-
o?
OtherRaw materials76,456,97120,717,77442,214,34354,960,402Goods in process1,021,070,136358,911,278440,620,636939,360,778
103103
2020
Item
December 31,2019
Increase in the current periodDecrease in the current period
December 31,2020ProvisionOther
Reversal or write-
o?
OtherStock commoditiesRevolving materialsConsumptive biologicalassetsContract performance costTotal1,097,527,107379,629,052482,834,979994,321,180
(3) Description of the amount of capitalized borrowing costs included in ending balance of inventories
□Applicable √Not applicable
(4) Description of the current amortization amount of contract performance cost
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Provision for inventory depreciation is as follows:
Specic basis for determination of net
realizable values
Reasons for provision for depreciationof inventories reversed or written-o? in
the current yearRaw materials and outsourced parts andcomponents
Product price fall results in raw materialsand outsourced parts and componentsDi?erence between the net realizable value
and its book value
Value recovery or external salesGoods in process
Di?erence between the net realizable value
and the book value of goods in process
Value recovery or self-use
The write-o? of provision for depreciation of goods in process mainly included the drilling platforms and oating cranesoriginally 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 fulll the obligations as contracted:
20202019Valid letter of guarantee signed by the bank12,587,156,26311,500,477,841Letter of guarantee not signed by the bank6,717,974,4987,293,181,242Total19,305,130,76118,793,659,08310 Contract assets (Applicable since Jan. 1, 2020)
(1) Particulars about contract assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
December 31, 2020December 31, 2019Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueWarranty balance recognized at the timeof control transfer
877,580,46243,597,676833,982,786435,489,86716,195,461419,294,406Outstanding payments for constructioncompleted
1,272,225,63942,911,5351,229,314,104568,423,148-568,423,148Total2,149,806,10186,509,2112,063,296,8901,003,913,01516,195,461987,717,554
(2) Amount of and reason for signicant changes in book value during the reporting period
□Applicable √Not applicable
104104
(3) Provision for impairment of contract assets in current period
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Provision in the current
period
Reversal in thecurrent period
Write-o?/charge-o? in thecurrent period
ReasonWarranty balance recognized at thetime of control transfer
35,823,8144,231,421-/Outstanding payments forconstruction completed
38,721,357-/Total74,545,1714,231,421-/If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to otherreceivables for disclosure:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Remark 1: When the Group sells equipment to customers and provides relevant installation services, it constitutes a singleperformance obligation. When the Group recognizes revenue at the time of fullling its performance obligations, the Company’sunconditional (i.e., only depending on the passage of time) right to collect consideration from customers shall be presented asreceivables. 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 formunconditional 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 productmanufacturing, and recognizes revenue within a period of time to form contract assets. The contract assets will formunconditional collection right at the time of project settlement and are transferred in receivables. The customers shall settleaccounts with the Group on the performance progress of engineering construction services and the delivery of steel structureproducts under contract provisions, and pay the contract price according to the credit period specied in the contract aftersettlement. The part of the income amount recognized by the Group according to the performance progress exceeding thesettled price is recognized as contract assets, and the part of the settled price exceeding the income amount recognized bythe Group according to the performance progress is recognized as contract liabilities.The contract assets with provision for impairment loss by credit risk features portfolio are as follows:
2020Book balance of estimated
default
Estimated credit loss rate (%)
Estimated credit loss in theentire durationWithin 1 year2,089,790,091369,984,1141-2 years22,579,760133,032,6632-3 years15,189,774243,623,174Over 3 years22,246,476449,869,260Total2,149,806,10186,509,211In this year, the performance progress of relevant construction contracts of the Group increased, and some of theperformance 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: CNYItemDecember 31, 2020December 31, 2019Debt investment due within one yearOther debt investments due within one yearLong-term receivables due within one year1,884,370,4441,313,203,581Total1,884,370,4441,313,203,581
105105
2020Important debt investment and other debt investments due at the end of the period:
□Applicable √Not applicable
Other descriptionNone
13 Other current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Contract acquisition cost--Return cost receivable--Input tax to be deducted688,621,455704,526,288Prepaid income tax19,862,64715,657,286Total708,484,102720,183,574
Other descriptionNone14 Debt investment
(1) Particulars about debt investment
□Applicable √Not applicable
(2) Important debt investment at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□Applicable √Not applicable
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly
□Applicable √Not applicable
Other description
□Applicable √Not applicable
15 Other debt investments
(1) Particulars about other debt investments
□Applicable √Not applicable
(2) Important other debt investments at the end of the period
□Applicable √Not applicable
(3) Provision for impairment
□Applicable √Not applicable
The amount of provision for impairment in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
16 Long-term receivables
(1) Long-term receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2020December 31, 2019
Discountrate rangeBook balance
Provision
for bad
debt
Book valueBook balance
Provisionfor bad debt
Book valueFinancing leaseIncluding: Unrealized nancingincome
106106
Item
December 31, 2020December 31, 2019
Discountrate rangeBook balance
Provisionfor baddebt
Book valueBook balance
Provisionfor bad debt
Book valueGoods sold on installmentServices provided on installmentReceivables from “Building –Transfer” project- Principal6,555,235,4546,555,235,4546,140,109,7486,140,109,748- Interest receivable371,433,599371,433,599349,937,720349,937,720Accounts receivable from the projectsof collection of payment by installment
34,815,73334,815,73350,884,53350,884,533Less: Long-term receivables duewithin one year
-1,884,370,444-1,884,370,444-1,313,203,581-1,313,203,581Total5,077,114,3425,077,114,3425,227,728,4205,227,728,420/As at December 31, 2020 and December 31, 2019, the account receivable from “Building – Transfer” project was theprincipal invested in above “Building– Transfer” project by the Group, and the amount of interest receivable was the nancingreturn recognized based on the contract.
As at December 31, 2020, the long-term accounts receivable were RMB 5,614,309,162 (as at December 31, 2019: RMB4,482,230,928), which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 1,947,736,154 (asat December 31, 2019: Long-term borrowings of RMB 1,420,127,942).
(2) Provision for bad debts
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly
□Applicable √Not applicable
(3) Long-term receivables derecognized due to transfer of nancial assets
□Applicable √Not applicable
(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:
Item20202019Within 1 year1,499,350,6421,189,304,3571-2 years1,104,671,9951,633,251,8032-3 years1,467,238,3871,996,302,110Over 3 years2,890,223,7621,722,073,731Sub-total6,961,484,7866,540,932,001Less: Long-term receivables due within one year1,884,370,4441,313,203,581Total5,077,114,3425,227,728,42017 Long-term equity investments
√Applicable □Not applicable
Unit: Yuan Currency: CNYInvested entity
December 31,2019
Increase/decrease in the current period
December 31,2020
Provision forimpairment atthe end of theyearFurtherinvestment
Reducedinvestment
Prot or losson investmentsunder the equitymethod
Adjustmentof othercomprehensiveincome
Changes inother equity
Cash dividendsor protdeclared to bedistributed
Provision forimpairment
OtherI. Joint venturesJiangsu Longyuan ZhenhuaMarine Engineering Co., Ltd
260,880,65315,179,788276,060,441
107107
2020
Invested entity
December 31,2019
Increase/decrease in the current period
December 31,
2020
Provision forimpairment atthe end of theyearFurtherinvestment
Reducedinvestment
Prot or losson investmentsunder the equity
method
Adjustment
of othercomprehensiveincome
Changes inother equity
Cash dividendsor protdeclared to bedistributed
Provision forimpairment
OtherCCCC Tianhe Xi’an EquipmentManufacturing Co., Ltd. (ii)
36,170,279-366,861-35,803,418ZPMC Mediterranean LimanMakinalari Ticaret AnonimSirketi
3,735,189-3,165,847569,342ZPMC-OTL MARINECONTRACTOR LIMITED
-----------Zhenhua Marine Energy (HK)Co., Ltd. (i)
-----------Cranetech Global Sdn. Bhd. 746,700-114,520632,180CCCC Nanjing Tra?cEngineering Management Co.,Ltd. (ii)
11,279,2389,899-11,289,137Sub-total312,812,05911,542,459-47,092,555277,261,963II. AssociatesCCCC Financial Leasing Co.,Ltd (iii)
1,785,702,878118,432,798-1,271,676-19,713,2421,883,150,758CCCC Estate Yixing Co., Ltd.183,660,5415,982,621-2,700,000186,943,162CCCC South AmericanRegional Company SARL
186,678,840-2,462,090-23,615,519160,601,231China CommunicationsConstruction USA Inc.
60,719,949-1,690,256-3,776,69555,252,998CCCC Marine Engineering &Technology Research CenterCo., Ltd.
16,730,804185,67816,916,482ZPMC Changzhou CoatingsCo., Ltd.
17,635,2772,241,634-3,984,47015,892,441ZPMC Southeast Asia Pte. Ltd1,670,322-14,6741,655,648CCCC Yancheng ConstructionDevelopment Co., Ltd.
289,766,242128,750,000418,516,242Suzhou Chuanglian ElectricDrive Co., Ltd.
11,941,4075,153,63317,095,040Shanghai Ocean EngineeringEquipment ManufacturingInnovation Center Co., Ltd.
6,355,426-485,0855,870,341CCCC Xiongan UrbanConstruction DevelopmentCo., Ltd. (iv)
1,500,0006,2281,506,228Shanghai Xingyi ConstructionTechnology Co., Ltd.
1,570,3501,570,350Sub-total2,560,861,686131,820,350127,350,487-28,663,890-26,397,7122,764,970,921Total2,873,673,745131,820,350138,892,946-28,663,890-26,397,712-47,092,5553,042,232,884Other descriptionJoint ventures:
(i) On May 5, 2014, the subsidiary of the Company and the partner invested to establish Zhenhua Marine Energy(Hong Kong) Co., Ltd (Zhenhua Marine Energy). The registered capital is USD 5,969,998. The subsidiary of the Companycontributed USD 3,044,699 with the shareholding ratio of 51%. Zhenhua Marine Energy focused on the vessel transportationbusiness. Based on the regulations of the shareholder agreement, the important events of such company shall be agreedby at least 75% shareholders via voting. Hence, the Group has no control right but jointly controls Zhenhua Marine Energytogether with the partner.(ii) On June 4, 2020, CCCC, the controlling shareholder of the Company, increased the investment amounting to RMB1,000,000,000 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 nolonger had control over CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd. Since June 4, 2020, the Group wouldno 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 EquipmentManufacturing Co., Ltd. and CCCC Nanjing Tra?c Engineering Management Co., Ltd., are no longer joint ventures of theGroup at the end of this year.
108108
Associates:
(i) On May 31, 2016, the Company and other shareholders increased the capital amounting to RMB 420,000,000 toCCCC Financial Leasing Co., Ltd. in the same proportion. After the capital increase, the investment costs of the Company toCCCC Financial Leasing Co., Ltd. Increased to RMB 1,500,000,000 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 100,000,000. The Company contributed RMB 15,000,000 with the shareholding ratio of15%. The company was mainly engaged in the engineering construction. According to relevant provisions of the Articles ofAssociation, the Company has the right to appoint one director to CCCC Xiongan Urban Construction Development Co., Ltd,and can exert signicant inuence on the company.18 Other equity instrument investment
(1) Particulars about other equity instrument investment
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Hunan Fengri Power & Electric Co., Ltd.22,685,89424,348,689CCCC Highway Bridges National Engineering Research Centre Co., Ltd.19,319,27617,649,136CCCC National Engineering Research Center of Dredging Technologyand Equipment Co., Ltd.
8,000,9089,005,378Ningbo Weilong Port Machinery Co., Ltd. (Former name: ZPMC NingboTransmission Machinery Co., Ltd)
6,565,2277,241,610Shenyang Weichen Crane Equipment Co., Ltd. (Former name: ShanghaiZhenhua Port Machinery (Group) Shenyang Elevator Co., Ltd.)
4,197,0362,865,664ZPMC Longchang Lifting Equipment Co., Ltd (Former name: ShanghaiZhenhua Port Machinery (Group) Longchang Lifting Equipment Co.,Ltd.)
737,410870,791Total61,505,75161,981,268
(2) Equity instrument investment not held for trading
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Dividendincomerecognizedin the currentperiod
Accumulatedgains
Accumulatedlosses
Amountof othercomprehensiveincometransferredto retainedearnings
Reasons for nancialassets designatedto be measured atfair value throughother comprehensiveincome
Reasons fortransferringothercomprehensiveincome intoretainedearningsHunan Fengri Power &Electric Co., Ltd.
2,687,734
Strategic investment,long-term holdingCCCC Highway BridgesNational EngineeringResearch Centre Co.,Ltd.
6,319,276
Strategic investment,long-term holdingCCCC NationalEngineering ResearchCenter of DredgingTechnology andEquipment Co., Ltd.
1,600,908
Strategic investment,long-term holdingNingbo Weilong PortMachinery Co., Ltd.(Former name: ZPMCNingbo TransmissionMachinery Co., Ltd)
5,269,227
Strategic investment,long-term holding
109109
2020
Item
Dividendincomerecognizedin the currentperiod
Accumulated
gains
Accumulatedlosses
Amountof othercomprehensive
incometransferredto retainedearnings
Reasons for nancial
assets designatedto be measured atfair value throughother comprehensive
income
Reasons fortransferringothercomprehensiveincome intoretainedearningsShenyang WeichenCrane Equipment Co.,Ltd. (Former name:
Shanghai ZhenhuaPort Machinery (Group)Shenyang Elevator Co.,Ltd.)
2,697,036
Strategic investment,long-term holdingZPMC LongchangLifting Equipment Co.,Ltd (Former name:
Shanghai ZhenhuaPort Machinery (Group)Longchang LiftingEquipment Co., Ltd.)
62,590
Strategic investment,long-term holding21st Century Scienceand TechnologyInvestment Co., Ltd.
30,000,000
Strategic investment,long-term holdingOther description:
□Applicable √Not applicable
19 Other non-current nancial assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Financial assets measured at fair value through the current prot or loss330,094,057-Total330,094,057-Other description:
√Applicable □Not applicable
On December 31, 2020, the Group’s nancial assets measured at fair value through the current prot or loss are the fairvalue 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
Item
Buildings andconstructions
Land use right
Construction inprogress
TotalI. Original book value
1. Balance as at December 31, 2019397,820,689209,845,794607,666,483
2. Increase in current period68,064,51768,064,517
(1) Outsourcing
(2) Transfer-in of inventories, xed assets and
construction in progress
(3) Increase in business combination
(4) Debt restructuring for debt repayment68,064,51768,064,517
3. Decrease in current period
110110
Item
Buildings andconstructions
Land use right
Construction inprogress
Total
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2020465,885,206209,845,794675,731,000II. Accumulative depreciation and amortization
1. Balance as at December 31, 2019123,057,91566,183,035189,240,950
2. Increase in current period13,511,7355,370,79618,882,531
(1) Provision or amortization13,511,7355,370,79618,882,531
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31, 2020136,569,65071,553,831208,123,481III. 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 period329,315,556138,291,963467,607,519
2. Book value at the beginning of the period274,762,774143,662,759418,425,533
(2) Investment property without certicate 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 fordebt repayment. The book value is recognized by the fair value of the abandoned creditor's rights and other costs directlyattributable 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 xed assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Buildings andconstructions
Machineryequipment
O?ce andelectronicequipment
Transportationfacilities(Excluding ship)
ShipTotalI. Original book value
1. Balance as at December
31, 2019
11,569,317,8168,430,886,826270,788,319258,377,19413,994,101,71034,523,471,865
2. Increase in current period30,571,004734,689,50230,120,87416,609,9721,229,829,9112,041,821,263
(1) Purchase11,773,442228,582,28327,602,74016,609,9723,835,965288,404,402
111111
2020
Item
Buildings andconstructions
Machineryequipment
O?ce andelectronicequipment
Transportation
facilities(Excluding ship)
ShipTotal
(2) Transfer-in of construction
in progress
18,797,562506,107,2192,518,1341,225,993,9461,753,416,861
(3) Increase in business
combination
3. Decrease in current period449,722,1972,280,519,03616,859,34417,921,204212,005,6702,977,027,451
(1) Disposal or scrap458,44772,668,3222,853,5928,113,117970,87985,064,357
(2) Reduction of consolidation
scope
449,263,7502,207,850,71414,005,7529,808,0872,680,928,303
(3) Exchange rate changes211,034,791211,034,791
4. Balance as at December
31, 2020
11,150,166,6236,885,057,292284,049,849257,065,96215,011,925,95133,588,265,677II. Accumulated depreciation
1. Balance as at December
31, 2019
4,038,333,2495,539,517,778207,931,042184,292,1393,098,430,35813,068,504,566
2. Increase in current period362,200,339290,031,65417,748,08810,952,920537,087,3211,218,020,322
(1) Provision362,200,339290,031,65417,748,08810,952,920537,087,3211,218,020,322
3. Decrease in current period87,675,328370,458,17211,352,96717,146,26732,227,874518,860,608
(1) Disposal or scrap227,58859,443,0472,575,1398,113,117733,97471,092,865
(2) Reduction of consolidation
scope
87,447,740311,015,1258,777,8289,033,150416,273,843
(3) Exchange rate changes31,493,90031,493,900
4. Balance as at December
31, 2020
4,312,858,2605,459,091,260214,326,163178,098,7923,603,289,80513,767,664,280III. 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, 2020IV. Book value
1. Book value at the end of
the period
6,837,308,3631,425,966,03269,723,68678,967,17011,408,636,14619,820,601,397
2. Book value at the
beginning of the period
7,530,984,5672,891,369,04862,857,27774,085,05510,895,671,35221,454,967,299
(2) Temporary idle xed assets
□Applicable √Not applicable
(3) Fixed assets acquired under nance leases
□Applicable √Not applicable
(4) Fixed assets leased out through operating lease
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemBook value at the end of the period Vessel4,314,276,451
112112
(5) Fixed assets without certicate of title
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemBook valueReasons for pending certicate of title Buildings and constructions880,944,048The handling of relevant formalities is still in process.
Other description:
√Applicable □Not applicable
As at December 31, 2020, the following xed assets were taken as loan mortgage:
Original priceBook value
BorrowingsNatureAmountVessel3,329,529,8892,821,018,550Long-term payables1,807,890,037As at December 31, 2019, the following xed assets were taken as loan mortgage:
Original priceBook value
BorrowingsNatureAmountMachinery equipment1,387,867,681255,113,376Long-term payables89,262,318Vessel6,634,000,7175,439,133,909Long-term payables2,161,280,894Total8,021,868,3985,694,247,2852,250,543,212
As at December 31, 2020 and December 31, 2019, the book values of xed assets for operating lease were as follows:
20202019Machinery equipment-783,490,756Vessel4,314,276,4511,622,945,798Total4,314,276,4512,406,436,554As at December 31, 2020, the xed assets with pending certicate of title were as follows:
Book valueReasons for pending certicate of titleBuildings and constructions880,944,048
The handling of relevant formalities is stillin process.
Liquidation of xed assets
□Applicable √Not applicable
22 Construction in progressItem presentation
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Construction in progress
(1) Particulars about construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2020December 31, 2019Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueInfrastructure construction of NantongBase
144,172,138144,172,13898,623,38398,623,383
113113
2020
Item
December 31, 2020December 31, 2019Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueInfrastructure construction ofChangxing Base
115,534,831115,534,83180,973,12980,973,129Large machinery and engineeringequipment of the base underconstruction
4,127,886,6154,127,886,6154,052,729,7434,052,729,743O?ce building and ancillary facilities29,40129,401Shield machine parts project28,416,00228,416,002Infrastructure construction of NanhuiBase
3,451,1243,451,1243,061,7443,061,744Large mechanical reconstruction andupgrading project
129,103,111129,103,111116,656,486116,656,486Total4,520,147,8194,520,147,8194,380,489,8884,380,489,888
(2) Changes of major construction in progress
√Applicable □Not applicable
Unit: Yuan Currency: CNYProjectBudget
December 31,2019Increase in thecurrent period
Amounttransferredinto xedassets inthe currentperiod
Otherdecreases inthe current
period
December31, 2020
Proportion ofcumulative
projectinvestment in
budget (%)
Construction
progress
Cumulativeamount ofinterestcapitalized
Including:
capitalizationof the interestin the currentperiod
Capitalization ratefor the interest inthe current period(%)
Fund sourceInfrastructureconstruction ofNantong Base
7,817,201,77198,623,38362,448,76516,900,010144,172,1388585
Self-ownedfundsInfrastructureconstruction ofChangxing Base
8,678,930,50080,973,12938,654,4984,014,00378,793115,534,8318383 23,531,836
Self-ownedfunds and bankborrowingsLarge machineryand engineeringequipment ofthe base underconstruction
8,362,817,3904,052,729,743970,168,945463,797,781431,214,2924,127,886,6159898213,369,67653,531,6663.48
Self-ownedfunds and bankborrowingsO?ce building andancillary facilities
34,798,37029,40186,842116,2439999
Self-ownedfundsShield machineparts project
140,796,53128,416,0029,431,1357,701,30230,145,8359393 5,762,616
Self-ownedfunds and bankborrowingsInfrastructureconstruction ofNanhui Base
531,736,4253,061,74410,207,5679,818,1873,451,1248989
Self-ownedfundsLarge mechanicalreconstruction andupgrading project
1,200,868,710116,656,486105,882,43748,999,33544,436,477129,103,1117676
Self-ownedfundsTotal26,767,149,6974,380,489,8881,196,880,189551,346,861505,875,3974,520,147,819//242,664,12853,531,666//
(3) Provision for impairment of construction in progress in the current period
□Applicable √Not applicable
Other description
□Applicable √Not applicable
Engineering materials
(4) Particulars about engineering materials
□Applicable √Not applicable
114114
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: CNYItem
Land useright
Patent right
Nonproprietary
technology
Softwareuse fee
Proprietarytechnology
TotalI. Original book value
1. Balance as at December
31, 2019
4,297,078,82875,619,61165,296,1714,437,994,610
2. Increase in current period18,805,59418,805,594
(1) Purchase18,487,86318,487,863
(2) Internal R & D
(3) Increase in business
combination
(4) Transfer-in of construction
in progress
317,731317,731
3. Decrease in current period96,727,23296,727,232
(1) Disposal
(2) Reduction of consolidation
scope
96,727,23296,727,232
4. Balance as at December
31, 2020
4,200,351,59694,425,20565,296,1714,360,072,972II. Accumulated amortization
1. Balance as at December
31, 2019
818,093,84351,245,79162,113,610931,453,244
2. Increase in current period86,880,8846,887,3651,609,73095,377,979
(1) Provision86,880,8846,887,3651,609,73095,377,979
3. Decrease in current period14,208,96514,208,965
(1) Disposal
(2) Reduction of consolidation
scope
14,208,96514,208,965
4. Balance as at December
31, 2020
890,765,76258,133,15663,723,3401,012,622,258III. Provision for impairment
115115
2020Item
Land useright
Patent right
Nonproprietary
technology
Softwareuse fee
Proprietarytechnology
Total
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, 2020IV. Book value
1. Book value at the end of
the period
3,309,585,83436,292,0491,572,8313,347,450,714
2. Book value at the
beginning of the period
3,478,984,98524,373,8203,182,5613,506,541,366At the end of the period, the proportion of intangible assets formed through internal R&D in the balance of intangibleassets is 0.In 2020, total technology research and development expenses of the Group amounted to RMB 737,468,137 (2019:
RMB 887,096,178). These technology research and development expenses are not capitalized.
(2) Land use right without certicate 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: CNYName of the investedentity or the mattersforming goodwill
December 31, 2019
Increase in currentperiod
Decrease in current period
December 31,
2020Formed by Businesscombination
DisposalOtherZPMC Qidong MarineEngineering Co., Ltd.
149,212,956149,212,956Verspannen B.V. 5,412,8075,412,807Greenland Heavy lift(HongKong) Limited
113,809,1717,362,471106,446,700Total268,434,9347,362,471261,072,463
Remark 1: The decrease in the current year was caused by the translation di?erences of foreign currency statement.
(2) Provision for impairment of goodwill
□Applicable √Not applicable
(3) Information about the asset group or portfolio of the goodwill
□Applicable √Not applicable
116116
(4) Explain the goodwill impairment test process, key parameters (such as the growth rate during forecast period when
estimating the present value of future cash ow, growth rate during stable period, prot rate, discount rate, forecast period, ifapplicable) and the recognition method of goodwill impairment loss
□Applicable √Not applicable
(5) Impact of goodwill impairment test
□Applicable √Not applicable
Other description
√Applicable □Not applicable
As at December 31, 2020, the Group had no provision for the impairment of goodwill. When the impairment test isconducted, the book value of goodwill is amortized to the asset group portfolio expected to benet from the synergistic e?ectof business combination.The goodwill acquired through business combination has been distributed to the following asset groups for 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 ve-year budget approved by themanagement and shall be measured with cash ow forecast method. Cash ow over 5-year period shall be calculated basedon the estimated growth rate.
The main assumptions of the future cash ow discount method:
Growth rate during forecast period8.12%-33.44%Perpetual growth rate3%Gross prot rate15.27%Pre-tax discount rate12.9%
GHHL semi-submerged ship transport assets group
The recoverable amount of GHHL semi-submerged ship transport assets group combination is determined based onthe expected future cash ow of the asset group, and the expected future cash ow is determined according to the cash owforecast based on the transport service contract revenue expected to be obtained within the service life of vessel.
The main assumptions of the future cash ow discount method:
Number of customized short-distance and long-distance transportservice contracts expected to be obtained
3 /year/vesselVessel utilization rate of general charter party65%Charter rate of general charter partyUSD 68,000/ dayPre-tax discount rate11.9%
The distributions of the book value of goodwill to asset groups are as follows:
Heavy equipment asset group
GHHL semi-submerged ship
transport assets group
Total202020192020201920202019Book amount of goodwill154,625,763154,625,763106,446,700113,809,171261,072,463268,434,934The perpetual growth rate adopted by management does not exceed the industry's long-term average growth rate.Based on the historical experience and the forecasts of market development, the management determines the budgetgross prot rate and adopts the pretax interest rate which can reect the specic risk of relevant asset group portfolio as thediscount rate. The above assumptions are used to analyze the recoverable amount of the asset group portfolio.
117117
202029 Long-term deferred expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase in thecurrent period
Amortization inthe current period
Otherdecreases
December 31, 2020Improvement expenditure ofxed assets under operatinglease
1,444,6365,744,1482,892,3823,793,591502,811Total1,444,6365,744,1482,892,3823,793,591502,811Other description:
2019
December
31, 2019
Increase in the
current year
Amortization inthe current year
Otherdecreases
December 31,2020Improvement expenditure of xedassets under operating lease
5,112,664-(3,668,028)-1,444,63630 Deferred income tax assets/liabilities
(1) Deferred income tax assets before o?setting
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2020December 31, 2019Deductible temporary
di?erences
Deferred incometax assets
Deductible temporarydi?erences
Deferred income
tax assetsProvision for impairment of assets2,828,618,698424,967,3414,365,778,693654,866,804Unrealized prots of internaltransactions
131,655,18719,748,27860,082,11412,012,332Deductible loss1,966,910,762295,036,614384,592,11257,688,817Estimated liabilities253,696,91238,054,537470,724,24770,608,637Wages and salaries unpaid29,765,3694,464,80528,462,1824,269,327Interest unpaid16,209,6972,431,45437,098,3435,564,751Deferred income63,738,1359,560,720Unrealized contract gross prot431,033,66364,655,049202,110,98030,316,647Changes in fair value of held-for-trading nancial liabilities
7,312,7411,096,911Total5,657,890,288849,358,0785,619,899,547845,984,946
(2) Deferred income tax liabilities before o?setting
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2020December 31, 2019Taxable temporarydi?erences
Deferred incometax liabilities
Taxable temporarydi?erences
Deferred incometax liabilitiesAsset evaluation increment from businesscombination not under common control
111,575,16816,736,275126,855,06319,028,259Changes in fair value of other debt investments----Changes in fair value of other equity investment18,511,5922,776,73918,987,1082,848,066Changes in fair value of held-for-tradingnancial assets
686,586,358103,059,339373,507,09557,055,388Depreciation of xed assets482,995,41280,491,724535,071,99188,286,880Total1,299,668,530203,064,0771,054,421,257167,218,593
118118
(3) Deferred income tax assets or liabilities presented by net amount after o?set
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
O?set amount ofdeferred income taxassets and liabilities at
the end of the period
Balance of deferredincome tax assetsand liabilities aftero?set at the end of
the period
O?set amount ofdeferred income taxassets and liabilities
at the beginning ofthe period
Balance of deferredincome tax assets andliabilities after o?set
at the beginning ofthe periodDeferred income tax assets96,397,406752,960,67277,361,866768,623,080Deferred income tax liabilities96,397,406106,666,67177,361,86689,856,727
(4) Details of unrecognized deferred income tax assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Deductible temporary di?erences184,855,083222,990,045Deductible losses1,676,785,0291,671,758,752Total1,861,640,1121,894,748,797
(5) The deductible losses on the unrecognized deferred income tax assets will become due in the following years
√Applicable □Not applicable
Unit: Yuan Currency: CNY
YearDecember 31, 2020December 31, 2019Remark2020368,426,916202169,696,90699,087,3072022248,507,784252,840,1942023562,790,591576,831,2472024374,573,088374,573,0882025421,216,660Total1,676,785,0291,671,758,752/Other description:
□Applicable √Not applicable
31 Other non-current assets
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
December 31, 2020December 31, 2019Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueContract acquisition cost------Return cost receivable------Contract warranty balancereceivable
551,442,57718,260,301533,182,276938,482,32939,033,628899,448,701Advance payment for vessels134,070,905-134,070,905132,563,749-132,563,749Outstanding payments forconstruction completed
169,751,108-169,751,108---
119119
2020
Item
December 31, 2020December 31, 2019Book balance
Provision forimpairment
Book valueBook balance
Provision forimpairment
Book valueAdvance payment for o?cebuildings
---28,773,53828,773,538Total855,264,59018,260,301837,004,2891,099,819,61639,033,6281,060,785,988
Other description:
The changes in the provision for impairment of the contract warranty balance receivable are as follows:
Balance at theend of last year
Adjustmentsfor changesin accounting
policies
Balance at thebeginning ofthe currentyear
Provision inthe current
year
Reversal in thecurrent year
Balance atthe end of thecurrent year2020-39,033,62839,033,62816,743,103(37,516,430)18,260,30132 Short-term borrowings
(1) Classication of short-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Pledged borrowingsMortgage borrowingsGuaranteed borrowings2,321,035,0331,363,293,671Fiduciary borrowings15,474,041,53220,638,025,709Total17,795,076,56522,001,319,380Description of the classication 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 atDecember 31, 2019: 2.7% to 5.66%).(i) As at December 31, 2020, the bank guarantee loan amounting to USD 171,651,399, equivalent to RMB 1,120,008,214(as at December 31, 2019: USD 195,420,669, equivalent to RMB 1,363,293,671) was the bank loans borrowed by thesubsidiary of the Company, which was guaranteed by the letter of guarantee issued by the bank for the Company within thescope of credit.As at December 31, 2020, the bank guarantee loan amounting to RMB 1,201,026,819 (as at December 31, 2019: 0) wasthe 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 nancial liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase in currentperiod
Decrease in currentperiod
December 31, 2020Held-for-trading nancialliabilities
120120
ItemDecember 31, 2019
Increase in currentperiod
Decrease in currentperiod
December 31, 2020Financial liabilities measuredat fair value through thecurrent prot or lossDerivative nancial liabilities7,312,741458,882Total7,312,741458,882Other description:
□Applicable √Not applicable
34 Derivative nancial liabilities
□Applicable √Not applicable
35 Notes payable
(1) Presentation of notes payable
√Applicable □Not applicable
Unit: Yuan Currency: CNYTypeDecember 31, 2020December 31, 2019Commercial acceptance billBank acceptance bill3,600,725,8923,420,945,451Total3,600,725,8923,420,945,451The 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: CNYItemDecember 31, 2020December 31, 2019Payables for material purchase and productmanufacturing
7,293,306,3367,095,705,902Equipment and vessel purchase payables236,939,531361,370,347Quality guarantee deposit payable203,484,597352,114,025Infrastructure payables36,176,45255,685,497Port charge payable3,996,2314,502,594Total7,773,903,1477,869,378,365
(2) Important accounts payable aging over 1 year
□Applicable √Not applicable
Other description
√Applicable □Not applicable
Aging analysis of accounts payable is as follows:
20202019Amount
Proportion in total
amount%
Amount
Proportion in total
amount%Within 1 year6,313,738,368816,173,075,49878Over 1 year1,460,164,779191,696,302,86722Total7,773,903,1471007,869,378,365100
121121
2020As 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 nal settlement.
37 Advances from customers
(1) Presentation of advances from customers
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Advances from customers for goods (i)--Advances for lease payment4,893,675166,750,428Total4,893,675166,750,428(i) The advances from customers for goods in this year shall be accounted as contract liabilities after the implementationof 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:
20202019Amount
Proportion intotal amount%
Amount
Proportion in totalamount%Within 1 year4,893,675100728,030,57088Over 1 year--94,957,41612Total4,893,675100822,987,98610038 Contract liabilities (Applicable from January 1, 2020)
(1) Particulars about contract liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Advances from customers for goods10,747,054,4689,407,248,317Amount settled for uncompleted work448,254,615333,571,365Total11,195,309,0839,740,819,682
(2) Amount of and reason for signicant 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 beendelivered, 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: CNYItemDecember 31, 2019
Increase in currentperiod
Decrease in current
period
December 31, 2020I. Short-term compensation329,928,7111,814,781,5251,955,910,267188,799,969
122122
ItemDecember 31, 2019
Increase in currentperiod
Decrease in current
period
December 31, 2020II. Post-employment benets -dened contribution plans
49,570219,730,336219,779,906-III. Dismissal benetsIV. Other benets due withinone yearTotal329,978,2812,034,511,8612,175,690,173188,799,969
(2) Presentation of short-term compensation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase in current
period
Decrease in current
period
December 31, 2020I. Salaries, bonuses, allowancesand subsidies
293,726,6181,456,926,0781,597,165,890153,486,806II. Employee welfare15,53758,302,54358,318,080III. Social insurance premium30,589111,962,438111,984,9238,104Including: medical insurancepremium
25,79497,829,36297,847,8627,294Work-related injury insurancepremium
2,1184,535,0104,537,128Maternity insurance premium2,6779,598,0669,599,933810IV. Housing provident funds20,539147,698,483147,710,9628,060V. Union expenditures andemployee education expenses
36,135,42827,337,24828,175,67735,296,999VI. Short-term paid absenceVII. Short-term prot sharing planVIII. Other short-termcompensation
12,554,73512,554,735Total329,928,7111,814,781,5251,955,910,267188,799,969
(3) Presentation of dened contribution plans
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase incurrent period
Decrease incurrent period
December 31, 2020
1. Basic endowment insurance premium48,140126,565,169126,613,309
2. Unemployment insurance premium1,430855,312856,742
3. Enterprise annuity payment
4. Supplementary endowment insurance
premium
92,309,85592,309,855Total49,570219,730,336219,779,906Other description:
□Applicable √Not applicable
123123
202040 Tax payable
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019VAT31,497,62319,182,496Consumption taxSales taxEnterprise income tax85,855,88484,488,181Individual income tax11,361,11314,648,581Urban maintenance and construction tax1,397,325445,032Education surtax1,295,006381,574Others29,375,98025,360,878Total160,782,931144,506,742
Other description:
Not applicable41 Other payables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Interest payableDividends payable352,59831,701,965Other payables480,713,102679,688,031Total481,065,700711,389,996
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
ItemDecember 31, 2020December 31, 2019Common stock dividendsPreferred stock/perpetual debt dividends classied asequity instrumentsPreferred stock/perpetual debt dividends-XXXPreferred stock/perpetual debt dividends-XXXDividends payable - CCCC Tianjin Dredging Co., Ltd.25,079,494Dividends payable - Chuwa Bussan Co. Ltd.6,269,873Dividends payable - Hong Kong Zhenhua EngineeringCo., Ltd.
346,005346,005
124124
ItemDecember 31, 2020December 31, 2019Dividends payable - Macau Zhenhua HarbourConstruction Co., Ltd.
6,5936,593Total352,59831,701,965Other explanations, including important dividends payable that have not been paid for more than one year, the reasonsfor non-payment shall be disclosed:
As at December 31, 2020, the reason for the dividend payable with the aging over 1 year amounting to RMB 352,598 (asat December 31, 2019: RMB 31,701,965) was that the shareholders of the Company had not requested for actual paymentby the Group.Other payables
(1) Other payables presented by nature
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Engineering deposit and quality guarantee deposit230,926,693227,040,148Investment section payable to CCCC (i)100,971,833Amounts due to related parties84,675,98977,381,454Special payables16,022,78516,971,821Others149,087,635257,322,775Total480,713,102679,688,031
(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 25,971,833 in the balance was the investmentliquidation 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 RMB75,000,000 in the balance was the purchase fund payable by the Group to CCCC. As of December 31, 2020, all relevantpayments have been completed.Aging analysis of other payables is as follows:
20202019AmountProportion %AmountProportion %Within 1 year349,708,19073501,239,66874Over 1 year131,004,91227178,448,36326Total480,713,102100679,688,031100
As at December 31, 2020, the other payables with the aging over 1 year were mainly the payable deposit and qualityguarantee deposit collected from outsourcing engineering team and payables to related party.42 Liabilities held for sale
□Applicable √Not applicable
43 Non-current liabilities due within one year
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Long-term borrowings due within one year914,366,4516,533,318,585Bonds payable due within one year
125125
2020ItemDecember 31, 2020December 31, 2019Long-term payables due within one year460,098,868754,165,928Lease liabilities due within one yearTotal1,374,465,3197,287,484,513Other description:
None
44 Other current liabilitiesOther 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) Classication of long-term borrowings
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2020December 31, 2019Pledged borrowings1,947,736,1541,420,127,942Mortgage borrowingsGuaranteed borrowings797,215,5053,689,523,034Fiduciary borrowings15,019,714,5349,837,007,595Less: Long-term borrowings due within oneyearFiduciary borrowings-239,762,214-2,966,074,277Guaranteed borrowings-470,970,505-3,219,523,034Pledged borrowings-203,633,732-347,721,274Total16,850,299,7428,413,339,986Description of the classication of long-term borrowings:
NoneOther 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 atDecember 31, 2019: 2.95% to 5.46%).(i) As at December 31, 2020, the bank guarantee loan amounting to USD 50,000,000, equivalent to RMB 326,245,000 (asat December 31, 2019: USD 50,518,682, equivalent to RMB 352,428,432), was the bank loan borrowed by the Company'ssubsidiary Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd. and the guarantee was provided by the Company. Theinterest 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 470,970,505 (as at December 31, 2019: RMB1,973,532,215), was the bank loan borrowed by the Company. The Company’s subsidiary ZPMC Port Machinery GeneralEquipment Co., Ltd., provided the joint and several liability repayment guarantee. The interest shall be paid quarterly and theprincipal will be due on November 10, 2021.(ii) As at December 31, 2020, the total amount of multiple pledged loans amounting to RMB 1,947,736,154 (as atDecember 31, 2019: RMB 1,420,127,942) took the long-term accounts receivable of the “building-transfer” project of theGroup 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).
126126
46 Bonds payable
(1) Bonds payable
□Applicable √Not applicable
(2) Increase or decrease of bonds payable: (excluding preferred shares, perpetual bonds and other nancial instruments
classied as nancial liabilities)
□Applicable √Not applicable
(3) Conditions and time for conversion of convertible bonds
□Applicable √Not applicable
(4) Description of other nancial instruments classied as nancial liabilities
Basic information of outstanding preferred shares, perpetual bonds and other nancial instruments at the end of theperiod
□Applicable √Not applicable
Changes in outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the period
□Applicable √Not applicable
Description of the basis for classifying other nancial instruments as nancial liabilities:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
47 Lease liabilities
□Applicable √Not applicable
48 Long-term payables
Item presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Long-term payablesSpecial payablesLeaseback nancing fund (i)1,807,890,0372,250,543,212"Building - transfer” project fund (ii)139,682,456139,682,457Project quality guarantee deposit145,284,307105,885,895Less: Leaseback nancing fund due within oneyear
-460,098,868-754,165,928Total1,632,757,9321,741,945,636
Other description:
√Applicable □Not applicable
(i) As at December 31, 2020, the long-term payables of RMB 1,807,890,037 (December 31, 2019: RMB 2,250,543,212)were obtained from the vessel with the book value of RMB 2,821,018,550 (as at December 31, 2019: vessels of RMB5,439,133,909, machinery equipment of RMB 255,113,376) in leaseback way from the financial leasing company, withthe maturity date from December 5, 2021 to September 24, 2031 (December 31, 2019: from April 11, 2020 to September24, 2031). The Group will pay the leaseback financing fund on schedule each year to the financial leasing company inaccordance with the contract terms. The Group takes the above series of transactions as mortgage loans for accountingtreatment.(ii) The Group and the construction party of “building-transfer” project agreed that part of the project payments would bepaid to the construction party after the nal acceptance of the “building-transfer” project within a certain term.Long-term payables
(1) Presentation of long-term payables by nature
□Applicable √Not applicable
Special payables
(2) Presentation of special payables by nature
□Applicable √Not applicable
49 Long-term payroll payable
□Applicable √Not applicable
127127
202050 Estimated liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemDecember 31, 2019December 31, 2020CausesExternal guaranteePending litigationProduct quality guarantee depositRestructuring obligationsLoss contracts to be executedRefund payableEstimated after-sale service cost481,342,622261,072,318Others2,658,150Total484,000,772261,072,318/
Other description, including relevant important assumptions and estimates of important estimated liabilities:
None51 Deferred incomeDeferred income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase incurrent period
Decrease incurrent period
December 31, 2020CausesGovernment subsidies360,656,71366,115,00373,932,916352,838,800Land compensation98,065,86662,148,66535,917,201Total458,722,57966,115,003136,081,581388,756,001/As at December 31, 2020, liability items involved in government subsidies:
√Applicable □Not applicable
Unit: Yuan Currency:CNYLiability item
December31, 2019
Newsubsidyamountin currentperiod
Amountincludedin non-operatingincomein current
period
Amountincludedin otherincomein currentperiod
Otherchanges
December 31,2020
Assets related /income relatedHoisting and pipe layingship R&D project
47,450,00047,450,000Income relatedAutomated dock R&Dproject
37,455,000-9,405,00028,050,000Income relatedO?shore deep waterenvironmental protectionintelligent shing groundconstruction project inFujian
20,000,00020,000,000Income relatedIntelligent transportationsystem of Automaticnavigation vehicle
16,800,00016,800,000Income related
128128
Liability item
December31, 2019
Newsubsidyamountin currentperiod
Amountincluded
in non-operatingincomein currentperiod
Amountincludedin otherincomein current
period
Otherchanges
December 31,2020
Assets related /income relatedDeep sea drilling shipand auxiliary equipmentresearch project
14,860,0001,340,00016,200,000Income relatedResearch anddemonstration project ofcrane boom structure and itstest with low cost and largebearing capacity at sea
16,000,000-800,00015,200,000Income relatedIntelligent manufacturingworkshop for crane box ofautomated terminal
14,171,79614,171,796Income relatedKey technology researchproject of bottom-supported o?shore windpower installation platform
12,400,00012,400,000Income related10,000t semi-submergedship R&D project
12,506,667-560,00011,946,667Income relatedComprehensivestandardization ofintelligent manufacturingof marine engineeringequipment
11,700,00011,700,000Income relatedHigh skill training facilitiesand equipment fundingproject
10,964,70010,964,700Income relatedTransportationemplacement systemR&D project
10,000,00010,000,000Income relatedFloating crane R&Dproject
12,659,000-2,740,4009,918,600Income relatedArchitecture design andtesting tools developmentof the next generationof intelligent operationplatform for automatedcontainer terminals
11,210,000-1,600,0009,610,000Income relatedDrilling platform R&Dproject
9,390,0009,390,000Income relatedResearch anddevelopment of large-scale underwater robotwork-system
8,533,000-432,0008,101,000Income relatedManufacturing processoptimization R&D project inmarine engineering eld
8,000,0008,000,000Income relatedR&D and applicationdemonstration projectfor the intelligent coatingsystem of the mainstructure of large portmachinery
8,000,0008,000,000Income related
129129
2020
Liability item
December31, 2019
Newsubsidyamountin currentperiod
Amountincludedin non-operatingincomein current
period
Amountincludedin otherincomein current
period
Otherchanges
December 31,2020
Assets related /income relatedSelf-elevating platformcentral control system
6,190,0006,190,000Income relatedRetractable boardingtrestle system R&Dproject
4,448,3001,551,7006,000,000Income relatedUnmanned drivingtechnology piercing andintelligent group controlsystem project
5,850,0005,850,000Income relatedDevelopment andindustrialization of largedeep water crane pipingship
5,572,0005,572,000Income relatedMarine engineeringpositioning system R&Dproject
4,472,8854,380,000-3,423,3915,429,494Income relatedCollaborative innovationin the industrial chain ofcore components for high-end marine engineeringequipment
2,100,0001,050,0003,150,000Income relatedKey technology researchand development, systemintegration and applicationof intelligent horizontaltransport vehicle
2,985,0002,985,000Income relatedFinishing intelligentproduction line of specialgear shaft for portmachinery
2,560,0002,560,000Income relatedResearch and applicationof key technologies forintelligent maintenancesystem for automaticcontainer handlingequipment
3,280,000-800,0002,480,000Income relatedIntelligent manufacturingline for crane box
2,280,0002,280,000Income relatedDesign and manufacturingtechnology of stingerfor deepwater subseapipeline laying system
2,400,000-288,0002,112,000Income relatedSoft set hybrid cloudsystem construction projectof the Economic andInformation TechnologyCommission in 2019
1,990,0001,990,000Income relatedResearch on thetechnology and applicationof marine environmentalprotection coatings
3,960,000-2,110,0001,850,000Income related
130130
Liability item
December31, 2019
Newsubsidyamountin current
period
Amountincluded
in non-operatingincomein currentperiod
Amountincludedin otherincomein currentperiod
Otherchanges
December 31,2020
Assets related /income relatedPort outdoor tracklessnavigation heavy loadproject
4,070,000-2,320,0001,750,000Income relatedAutomatic transferequipment and supportingtechnology
1,540,0001,540,000Income relatedResearch on the heavemotion compensationtechnology of mining pipe
1,088,0001,088,000Income relatedIntelligent transportationequipment and supportingtechnology for multimodaltransportation
990,000990,000Income relatedResearch and introductionof key technologies forthree-dimensional VOCsobservation, traceabilityand near-zero emission
1,600,000-640,000960,000Income relatedIndustrial Internet basedon Beidou time and spacebenchmark service
760,500760,500Income relatedAGV Eight-wheel 180degree rotary electricdi?erential AGV
860,000-160,000700,000Income relatedDevelopment of HILtest platform for keycontrol system of marineengineering ships
500,000500,000Income relatedPrecise shape control,performance control,manufacturing andassembly technologyfor high-speed precisionheavy duty herringbonegear
200,000200,000Income relatedSpecial equipmentresearch project for theconstruction of immersedtube tunnel of Shenzhen-Zhongshan Access
180,000180,000Income relatedDevelopment of intelligentoperation system fordredging vessel
144,123144,123Income relatedMulti-method integrationtechnology developmentand demonstrationapplication project forinnovation chain
126,000126,000Income relatedTwo ISO internationalstandards developmentprojects approved in 2018
60,00060,000Income related
131131
2020
Liability item
December31, 2019
Newsubsidyamountin currentperiod
Amountincludedin non-operatingincomein current
period
Amountincludedin otherincomein current
period
Otherchanges
December 31,2020
Assets related /income relatedIntelligent equipment forcontainer yard
1,245,000-1,245,000Income relatedOthers68,133,0656,764,980-38,784,960-8,624,16527,488,920Income relatedTotal360,656,71366,115,003-56,158,751-17,774,165352,838,800Other description:
√Applicable □Not applicable
Remark 1: the government subsidies of RMB 556,923 and land compensation of RMB 60,448,960 in decreases in thisyear 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 amortizedover the 50 years’ land use term.52 Other non-current liabilities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Contract liabilitiesOutput tax to be carried forward430,372,502376,626,821Total430,372,502376,626,821
Other description:
On balance sheet date, the revenue of some construction contracts and interest income of “building-transfer” projects ofthe Company had not reached the time point of the VAT liability.53 Share capital
√Applicable □Not applicable
Unit: Yuan Currency: CNYDecember 31,
2019
Increase/decrease (+/-)New shares
issued
Sharedonation
Conversionof reservesinto share
Others
Sub-total
December 31,2020Total shares5,268,353,5015,268,353,501Other description:
None54 Other equity instruments
(1) Basic information of outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the
period
√Applicable □Not applicable
As of December 31, 2020, the details of the Group’s outstanding perpetual bonds are as follows:
Date of issue
Accountingclassication
Interest rate
Issueprice
NumberAmount
Maturity orrenewalPerpetual medium-term notes
132132
Date of issue
Accountingclassication
Interest rate
Issueprice
NumberAmount
Maturity orrenewalSecond issueof medium-termnotes of ShanghaiZhenhua HeavyIndustries Co., Ltd.in the year 2020
December 24,2020
Equityinstrument
5.06%1005,000,000500,000,000UndueThe Group issued the perpetual notes on December 24, 2020, with a term of 2+N (2) years, which will survive for along time before the Group redeems in accordance with the terms of issue, and will mature when the issuer redeems inaccordance with the terms of issue. The initial coupon of perpetual notes is 5.06%. In accordance with the terms of issueof medium-term notes, the Company has the right to distribute cash interest annually at annual interest rate and has nocontractual obligation to repay the principal or pay any interest free of charge. Except for compulsory interest payment,on each interest payment date of medium-term notes, the Group may, at its own option, postpone the payment of currentinterest and all deferred interest and its fruits in accordance with this clause to the next interest payment date, and is notlimited by the number of deferred interest payments. On the reset date of the coupon rate of medium-term notes, theCompany has the right to redeem the medium-term notes at face value plus interest payable (including all deferred interestpayments). The Group deems that the notes do not meet the denition of nancial liabilities and therefore classies it asother equity instruments.
(2) Changes in outstanding preferred shares, perpetual bonds and other nancial instruments at the end of the period
√Applicable □Not applicable
Outstandingnancialinstruments
Beginning
Increase in currentperiod
Decrease in currentperiod
EndingAmount
Bookvalue
AmountBook valueAmount
Bookvalue
AmountBook valueSecond issueof medium-termnotes of ShanghaiZhenhua HeavyIndustries Co., Ltd. inthe year 2020
5,000,000500,000,0005,000,000500,000,000Total5,000,000500,000,0005,000,000500,000,000Description of the increase and decrease of other equity instruments in the current period, reasons for changes, andbasis for relevant accounting treatment:
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
55 Capital reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase incurrent period
Decrease incurrent period
December 31, 2020Capital premium (Share capitalpremium)
4,537,774,5534,537,774,553Other capital reservesBusiness combination under commoncontrol
-16,203,111-16,203,111Purchase of minority interest-711,345-711,345Absorption of minority shareholders’investments by subsidiaries
185,934,674185,934,674
133133
2020ItemDecember 31, 2019
Increase incurrent period
Decrease incurrent period
December 31, 2020Transfer-in of capital reserves underthe original system
128,059,561128,059,561Total4,834,854,3324,834,854,332
Other description, including the increase and decrease in the current period and the reasons for changes:
None
56 Treasury stock
□Applicable √Not applicable
57 Other comprehensive income
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
December 31,
2019
Amount incurred in the current period
December31, 2020Pre-tax amount
Less: amount
previously
included inthe othercomprehensive
income andcurrentlytransferred to
the prot orloss
Less: amountpreviouslyincluded inthe othercomprehensiveincome and
currentlytransferredto retainedearnings
Less:
income tax
Attributableto the parent
companyafter tax
Attributable
to theminorityequity after
taxI. Othercomprehensiveincome that can'tbe reclassied intoprot and loss
-13,860,957-475,517-71,328-404,189-14,265,146Including: Remeasurethe variation of netindebtedness ornet asset of denedbenet planOther comprehensiveincome that can'tbe reclassied intoprot and loss in theinvested enterpriseunder equity methodFair value change ofother equity instrumentinvestments
-13,860,957-475,517-71,328-404,189-14,265,146Fair value change ofenterprise credit risksII. Othercomprehensiveincome that will bereclassied intoprot and loss
37,391,408-108,841,187-86,053,660-22,787,527-48,662,252Including: Othercomprehensiveincome that will bereclassied intoprot and loss in theinvested enterpriseunder equity method
-9,051,692-28,663,890-28,663,890-37,715,582Fair value change ofother debt investmentsAmount of nancialassets reclassied intoother comprehensiveincomeProvision for creditimpairment of otherdebt investmentsCash ow hedgingreserve
134134
Item
December 31,2019
Amount incurred in the current period
December31, 2020Pre-tax amount
Less: amount
previouslyincluded inthe othercomprehensiveincome andcurrentlytransferred tothe prot orloss
Less: amount
previouslyincluded inthe othercomprehensiveincome andcurrentlytransferredto retainedearnings
Less:
income tax
Attributableto the parentcompanyafter tax
Attributableto theminorityequity aftertaxTranslation reserve46,443,100-80,177,297-57,389,770-22,787,527-10,946,670Total othercomprehensiveincome
23,530,451-109,316,704-71,328-86,457,849-22,787,527-62,927,398Other description, including the adjustment of the initial recognition amount of the e?ective part of prot or loss of cashow hedging converted into the hedged item:
None
58 Special reserves
√Applicable □Not applicable
2020
Unit: Yuan Currency: CNYItemDecember 31, 2019
Increase in currentperiod
Decrease in current
period
December 31, 2020Work safety expenses3,615,63882,412,82884,092,3131,936,153Total3,615,63882,412,82884,092,3131,936,1532019
December 31, 2019IncreaseDecreaseDecember 31, 2020Work safety expenses3,019,17371,228,319(70,631,854)3,615,638
Other description, including the increase and decrease in current period and the reasons for changes:
According to the relevant requirements of the Administrative Measures for the Withdrawal and Use of Work SafetyExpenses, the enterprises engaged in large - scale machinery manufacture and engineering construction shall withdraw thework safety expenses according to the standards. The increase and decrease in current year was the work safety expenseswithdrawn and used by the Group for the reporting year in accordance with relevant requirements.59 Surplus reserves
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Balance at theend of the last
year
Changes inaccountingpolicies
December 31,2019
Increasein currentperiod
Decrease incurrent period
December 31,
2020Statutory surplus reserves1,468,820,041-143,572,5451,325,247,49633,792,3831,359,039,879Discretionary surplusreserves
292,378,668-292,378,668292,378,668Reserve fundEnterprise developmentfundOthersTotal1,761,198,709-143,572,5451,617,626,16433,792,3831,651,418,547Description of surplus reserves, including the increase and decrease in current period and the reasons for changes:
135135
2020In accordance with the Company Law of the People Republic of China, the Company’s Article of Association and theresolutions of the Board of Directors, the Company withdrew 10% of its net prot as statutory surplus reserves. When theaccumulated amount of statutory surplus reserves reaches 50% or more of the share capital, the Company can stop thewithdrawal.The statutory surplus reserves can be used to compensate loss upon approval, or to increase share capital. Thestatutory surplus reserves withdrawn by the Company amounted to RMB 33,792,383 in 2020 (2019: RMB 64,436,155).
60 Undistributed prots
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemCurrent periodPrevious periodUndistributed prots at the end of previous period before adjustment3,651,851,3833,344,953,206Total undistributed prots at the beginning of the adjustment period(increase +, decrease -)
-1,399,694,619119,821,864Undistributed prots at the beginning of the period after adjustment2,252,156,7643,464,775,070Plus: Net prot attributable to owners of the parent company422,240,299514,930,143Less: withdrawal of statutory surplus reserves33,792,38364,436,155Withdrawal of discretionary surplus reserveWithdrawal of general risk preparationCommon stock dividends payable263,417,675263,417,675Common stock dividends converted to share capitalUndistributed prots at the end of the period2,377,187,0053,651,851,383Details of undistributed prot at the beginning of adjustment period:
1. Due to the retroactive adjustment of Accounting Standards for Business Enterprises and related new regulations, the
impact on undistributed prots at the beginning of the period was RMB 0.
2. The impact of changes in accounting policies on undistributed prots at the beginning of the period was RMB -1,399,694,619.
3. The impact of correction of major accounting errors on undistributed prots at the beginning of the period was RMB 0.
4. The impact of change of consolidation scope caused by the common control on undistributed prots at the beginning
of the period was RMB 0.
5. The total impacts of other adjustment on undistributed prots at the beginning of the period were RMB 0.
61 Operating revenue and operating costs
(1) Operating revenue and operating costs
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current periodAmount incurred in the previous periodRevenueCostRevenueCostPrimary business22,396,639,37519,305,124,81324,212,854,75220,419,043,031Other business258,502,277108,140,441382,733,131171,488,291Total22,655,141,65219,413,265,25424,595,587,88320,590,531,322Primary business revenue and cost are presented as below:
20202019Primary businessrevenue
Primary businesscost
Primary businessrevenue
Primary businesscostPort machinery14,457,042,91611,813,606,07816,458,563,16413,240,912,286Heavy equipment1,062,669,195994,642,2191,491,597,7491,218,182,031"Building-transfer" project andengineering construction
2,365,760,8742,220,603,9492,564,145,0182,428,961,159
136136
20202019Primary businessrevenue
Primary businesscost
Primary business
revenue
Primary business
costSteel structures and related revenue3,277,507,6513,170,269,4432,709,430,9772,571,473,994Vessel shipping and others1,233,658,7391,106,003,124989,117,844959,513,561Total22,396,639,37519,305,124,81324,212,854,75220,419,043,031
Other business revenue and cost are presented as below:
20202019Other business
revenue
Other business cost
Other businessrevenue
Other business costSales of materials71,730,251 68,201,53084,343,16376,180,525Equipment leasing and others186,772,026 39,938,911298,389,96895,307,766Total258,502,277108,140,441382,733,131171,488,291
(2) Details of operating revenue
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in the
previous periodOperating revenue22,655,141,652/Less: business income unrelated to primary business258,502,277/Less: income without commercial substance/Operating revenue after deducting the business income unrelatedto primary business and the income without commercial substance
22,396,639,375/
(3) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Classication of ContractXXX-DivisionTotalType of goods
Port machinery14,457,042,916Steel structures and related revenue3,277,507,651"Building-transfer" project and engineering construction2,365,760,874Heavy equipment1,062,669,195Vessel shipping and others966,389,544Sales of materials and others183,277,589By region of operation
Chinese Mainland12,861,392,242Europe2,604,103,174Asia (excluding Chinese Mainland)3,289,553,492North America1,345,494,819Chinese Mainland (export sales)1,061,063,332Africa468,958,316South America444,522,956Oceania237,559,438Market or customer typeContract type
137137
2020
Classication of ContractXXX-DivisionTotalRevenue recognized at a certain point of timePort machinery14,457,042,916Heavy equipment1,062,669,195Steel structure and related income1,704,177,499Sales of materials and others547,116,273Revenue recognized in a certain period of time“Building-transfer” project and engineering construction2,365,760,874Steel structure and related income1,573,330,152Shipping602,550,860By time of goods transferBy contract termBy sales channelTotal22,312,647,769Description 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 productsThe Group performs its obligations when delivering port machinery to customers and obtaining pre-delivery certicateor other relevant delivery certicates. The Group performs its obligations when delivering heavy equipment to customers andobtaining the handover protocol or other relevant delivery certicate. For the steel structure product manufacturing contractthat meets the performance obligations within a certain period of time, the Group performs its performance obligations withinthe time of transferring the steel structure product; for the steel structure product manufacturing contract that does not meetthe performance obligation within a certain period of time, the Group performs its performance obligations when the steelstructure product is delivered and signed by the owner. The contract price is usually paid according to the payment scheduleagreed in the contract. After the delivery of the goods, the customer usually retains a certain proportion of the qualityguarantee deposit, which is usually paid after the expiration of the quality guarantee period. The Group provides guaranteedwarranty for the above products.Building servicesThe Group performs its performance obligations within the time of providing services, and the contract price is usuallypaid within 30 days after the settlement of the project. The customer usually retains a certain proportion of the qualityguarantee deposit, which is usually paid after the expiration of the quality guarantee period.Shipping servicesThe Group performs its performance obligations within the time of providing transportation services. The contract priceis usually paid within the period from 3 days before unloading to 30 days after unloading.
(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 theyear is as follows:
2020Advances from customers for goods5,570,531,698Amount settled for uncompleted work 289,457,020Total5,859,988,718
The revenue recognized in the current year for the performance obligations that have been performed (or partiallyperformed) in the previous period is as follows:
138138
2020“Building-transfer” project and engineering construction2,208,312,044Steel structure and related income69,275,266Total2,277,587,31062 Taxes and surcharges
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodConsumption taxSales taxUrban maintenance and construction tax10,671,1365,291,413Educational surtax8,659,2014,625,393Resource taxHousing property tax45,516,53452,880,028Land use tax20,586,84824,137,152Vehicle and vessel use taxStamp duty17,975,54316,163,330Others2,869,0094,931,365Total106,278,271108,028,681Other description:
None63 Selling and distribution expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodEmployee compensation72,513,09574,574,647Travel expenses9,813,22220,877,895Advertising and publicity costs5,750,1746,112,880Sales and service fees3,639,2836,028,717Bidding and tendering expenses2,474,6074,381,065Exhibition fees2,363,9642,028,918O?ce expenses2,352,3911,854,211Others 6,856,9036,658,703Total105,763,639122,517,036
Other description:
None
64 General and administrative expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodEmployee compensation447,298,395574,875,380
139139
2020Item
Amount incurred in thecurrent period
Amount incurred in theprevious periodAmortization of intangible assets95,379,02098,274,728Depreciation of xed assets76,563,98678,096,567Travel expenses59,283,19179,287,298O?ce expenses53,476,21966,065,944Expenses from employment of intermediaries48,556,45226,042,989Management and security fees23,042,39723,138,964Management and cleaning fees15,830,53914,822,114Consulting fees13,457,79316,504,530Informatization expenses12,013,42812,571,622Entertainment expenses11,040,36414,982,731Insurance expenses8,970,97613,347,013Maintenance cost6,972,4176,151,691Others65,815,66270,969,716Total937,700,8391,095,131,287Other description:
Not applicable
65 Research and development expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodEmployee compensation391,087,521422,157,374Processing expenses105,358,575173,591,786Depreciation expenses92,450,574133,479,779Materials expenses82,490,11597,624,849Product design expenses1,046,7465,968,051Others65,034,60654,274,339Total737,468,137887,096,178Other description:
None66 Financial expenses
√Applicable □Not applicable
Unit: Yuan Currency:CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodInterest expenses1,396,776,7271,746,843,552Less: Capitalized amount of interest-53,531,666-44,551,183Less: interest income-369,113,644-331,452,183Exchange losses85,689,29515,933,055Others57,921,152109,813,173Total1,117,741,8641,496,586,414
140140
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
Item
Amount incurred in thecurrent period
Amount incurred in theprevious periodFiscal appropriation (i)72,103,58768,173,798Technological subsidy (ii)19,425,76317,850,797Land compensation (iii)1,698,7012,434,993Total93,228,05188,459,588
Other description:
(i) and (ii) are related to income, while (iii) is related to assets.68 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodIncome from long-term equity investment calculated under the equitymethod
138,892,946110,724,316Investment income from disposal of long-term equity investment27,195,895Investment income from held-for-trading nancial assets during theholding period
45,769,20263,766,921Dividend income from other equity instrument investment during holding6,171,983Interest income from debt investment during holdingInterest income from other debt investment during holdingInvestment income from disposal of held-for-trading nancial assets195,487,757109,315Investment income from disposal of other equity instrument investmentInvestment income from disposal of debt investmentInvestment income from disposal of other debt investmentTotal413,517,783174,600,552Other description:
None69 Net exposure hedging gain
□Applicable √Not applicable
70 Income from fair value change
√Applicable □Not applicable
Unit: Yuan Currency: CNYSources of income from fair value change
Amount incurred in the
current period
Amount incurred in theprevious periodHeld-for-trading nancial assetsIncluding: income from fair value change of derivative nancialinstruments
141141
2020Sources of income from fair value change
Amount incurred in thecurrent period
Amount incurred in theprevious periodStock investment of listed companies93,856,832117,579,147Derivative nancial instruments - Forward exchange contract7,312,741-44,481,806Derivative nancial instruments - Foreign exchange option contract-11,264,55522,235,244Held-for-trading nancial assetsIncluding: Derivative nancial instruments - Forward exchangecontract
-7,312,741Investment property measured at fair valueOther non-current nancial assets4,267,438Total94,172,45688,019,844
Other description:
None
71 Credit impairment loss
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodLoss on bad debts of notes receivableLoss on bad debts of accounts receivable137,464,61836,235,314Loss on bad debts of other receivables618,9432,526,279Loss on impairment of debt investmentLoss on impairment of other debt investmentLoss on bad debts of long-term receivablesLoss on impairment of contract assetsTotal138,083,56138,761,593Other description:
None72 Assets impairment losses
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in the
current period
Amount incurred in theprevious periodI. Bad debt lossII.Loss on price falling of inventory and impairment loss of contractperformance costs
164,106,800-71,619,476III. Impairment loss of long-term equity investmentIV. Impairment loss of investment propertyV. Impairment loss of xed assetsVI. Impairment loss of engineering materialsVII. Impairment loss of construction in progressVIII. Impairment loss of productive biological assetsIX. Impairment loss of oil and gas assetsX. Impairment loss of intangible assetsXI. Goodwill impairment loss
142142
Item
Amount incurred in thecurrent period
Amount incurred in theprevious periodXII. OthersXIII. Impairment loss of contract assets49,540,423XIV. Estimated contract losses124,113,760Total213,647,22352,494,284Other description:
None
73 Income from disposal of assets
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in theprevious periodIncome from disposal of xed assets6,755,68849,091,913Total6,755,68849,091,913Other description:
None74 Non-operating incomeNon-operating income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amountincurred in theprevious period
Amount included innon-recurring prot orloss in current periodTotal gains from disposal of non-current assetsIncluding: gains from disposal of xed assets
Gains from disposal of intangible assetsGains from debt restructuringGains from exchange of non-monetary assetsAccepting donationsGovernment subsidies4,620,9754,812,3924,620,975Revenue from insurance indemnity60,000Others 12,716,52411,590,31812,716,524Total17,337,49916,462,71017,337,499
Government subsidies included in current prot or loss
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
143143
202075 Non-operating expenditure
√Applicable □Not applicable
Unit: Yuan Currency: CNY
Item
Amount incurred in thecurrent period
Amount incurred in theprevious period
Amount included innon-recurring prot orloss in current periodTotal loss on disposal of non-current assetsIncluding: Loss on disposal of xed assets
Loss on disposal of intangible assetsLoss on debt restructuringLoss on exchange of non-monetary assetsOverdue ne payment3,139,7451,213,0123,139,745Amercement outlay2,080,0005,535,0002,080,000External donations768,149128,984768,149Lawsuit compensation21,781,220Others 2,010,0161,545,2822,010,016Total7,997,91030,203,4987,997,910Other 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:
20202019Used raw materials and low-cost consumables21,607,174,31315,704,636,157Changes in goods in process and inventories(7,257,183,881)-Employee compensation2,034,511,8612,216,065,862Depreciation and amortization expenses1,335,173,2141,330,738,630Outsourcing expenses1,424,619,5721,378,775,266Transportation expenses576,522,583589,854,221On-site installation expenses206,431,154257,412,249Rental fees264,369,240218,357,687After-sale cost260,202,215240,972,483Energy cost216,052,124216,602,224Travel expenses69,096,413100,165,193O?ce expenses55,828,61067,920,155Expenses from employment of intermediaries48,556,45226,042,989Informatization expenses12,013,42812,571,622Entertainment expenses11,040,36414,982,731Bidding and tendering expenses2,474,6072,028,918Other expenses327,315,600318,149,436Total21,194,197,86922,695,275,823
144144
76 Income tax expenses
(1) Table of income tax expenses
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in the
previous periodCurrent income tax expenses84,990,56072,527,877Deferred income tax expenses1,080,44021,222,707Total86,071,00093,750,584
(2) Accounting prot and income tax expenses adjustment process
√Applicable □Not applicable
Unit: Yuan Currency: CNY
ItemAmount incurred in the current periodTotal prots502,206,431The income tax expenses calculated based on statutory/applicable tax rates 75,330,965Inuences caused by di?erent tax rates adopted by subsidiaries 27,065,779Inuences caused by adjustment on income tax of previous periodsInuences on non-taxable incomeInuences caused by non-deductible cost, expenses and losses 3,672,781Inuences caused by non-conrmation of deductible losses of deferred income tax assetsInuences caused by non-conrmation of deductible temporary di?erences or deductiblelosses in current period
54,361,762Prot or loss attributable to joint ventures and associates-20,833,942Tax-free income-12,270,940Adjustment to nal settlement in previous years15,130,141Use of deductible losses in previous years-21,891,855Additional deduction of technological development expenses-34,493,691Income tax expenses86,071,000Other description:
□Applicable √Not applicable
77 Other comprehensive income
□Applicable √Not applicable
78 Cash ow statement items
(1) Other cash received related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency:CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodCustoms deposit recovered198,238,436215,598,140Cash received from government subsidies and rewards117,022,98599,690,746Employee loan recovered3,248,0104,949,202Cash received from the revenue from nes11,083,6457,820,315Others8,697,6501,708,855Total338,290,726329,767,258
145145
2020Description of other cash received related to operating activities：
None
(2) Other cash paid related to operating activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in the
previous periodCustoms deposit paid193,361,873190,498,482Expenditures on selling and distribution expenses, general andadministrative expenses, and research and development expenses
231,503,637480,355,112Financial expenses and handling charges45,869,06572,827,220Subsidy for research and development paid to cooperative units17,217,2426,075,000Others105,577,762157,753,932Total593,529,579907,509,746Description of other cash paid related to operating activities :
None
(3) Other cash received related to investing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodInterest income337,058,520267,388,460Total337,058,520267,388,460Description of other cash received related to investing activities:
None
(4) Other cash paid related to investing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in the
previous periodNet cash outows from disposal of subsidiaries243,269,060Others22,982,499Total266,251,559
Description of other cash paid related to operating activities :
None
(5) Other cash received related to nancing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the
current period
Amount incurred in theprevious periodRestricted bank deposits recovered265,853,823311,887,883Loan recovered from related parties343,565,000-Loan recovered from third parties88,783,796507,447,092Total698,202,619819,334,975Description of other cash received related to nancing activities:
None
146146
(6) Other cash paid related to nancing activities
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in thecurrent period
Amount incurred in theprevious periodRestricted bank deposits paid384,225,265265,853,823L/G expenditures on overseas loan under domestic guarantee7,948,60627,092,719Disinvestment by minority shareholders141,669,170Related-party loan repaid539,394,461864,135,544Third-party loan repaid336,378,26086,683,488Total1,409,615,7621,243,765,574Description of other cash paid related to nancing activities :
None79 Further information on cash ow statement
(1) Further information on cash ow statement
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemCurrent amountPrevious amount
1. Reconciliation from net prots to cash ows from operating activities:
Net prot416,135,431497,121,613Plus: provision for impairment of assets213,647,22352,494,284Credit impairment loss138,083,56138,761,593Depreciation of xed assets, oil and gas assets and productivebiological assets
1,236,902,8531,227,429,642Amortization of right to use assetsAmortization of intangible assets98,270,361103,308,988Amortization of long-term deferred expensesLosses on disposal of xed assets, intangible assets and other long-term assets (gains expressed with “-”)
-6,755,688-49,091,913Loss on retirement of xed assets (gains expressed with “-”)Loss from fair value change(gains expressed with “-”) -94,172,456-88,019,844Financial expenses(gains expressed with “-”) 888,739,7771,547,048,645Investment losses (gains expressed with “-”) -413,517,783-174,600,552Decrease in deferred income tax assets (increase expressed with “-”) -15,800,83266,615,331Increase in deferred income tax liabilities (decrease expressed with “-”) 16,881,272-45,392,624Decrease in inventories (increase expressed with “-”) -3,780,048,380-3,151,985,115Increase in construction contract payment (increase expressed with “-”) -766,839,149-531,000,142Decrease in operating receivables (increase expressed with “-”) 288,132,036440,854,132Increases in operating payables (decrease expressed with “-”) 2,601,410,2791,356,072,606Others--Increase in special reserves (decrease expressed with “-”)-1,679,485596,465Net cash ow from operating activities819,389,0201,290,213,109
2. Signicant investment and nancing activities not involving cash deposit and withdrawal:
Conversion of debt into capitalConvertible bonds due within one year
147147
2020ItemCurrent amountPrevious amountFixed assets under nancing lease
3. Net changes in cash and cash equivalents:
Ending balance of cash2,897,742,3403,068,024,976Less: Beginning balance of cash3,068,024,9763,148,987,372Plus: Ending balance of cash equivalentsLess: Beginning balance of cash equivalentsNet decrease of cash and cash equivalents-170,282,636-80,962,396Endorsement transfer of notes:
20202019Endorsement transfer of bank acceptance bill received from sales ofgoods and rendering of services
2,339,442,7213,777,188,521
(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: CNYItemAmountCash or cash equivalents received in current period from the disposal of subsidiaries incurrent periodLess: Cash and cash equivalents held by the Company on the date of loss of control243,269,060Plus: Cash or cash equivalents received in current period from disposal of subsidiaries inprevious periodsNet cash received from disposal of subsidiaries-243,269,060Other description:
None
(4) Composition of cash and cash equivalents
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019I. Cash 2,897,742,3403,068,024,976Including: cash on hand1,063,4721,469,655
Bank deposit readily available for payment 2,896,678,8683,066,555,321Other monetary capital readily available for paymentDeposits with central bank available for paymentDeposits in other banksBorrowings from other banksII. Cash equivalentsIncluding: bond investment due within three monthsIII. Balance of cash and cash equivalents at the end of periodIncluding: restricted cash and cash equivalents of parent companyor subsidiaries within the Group
Other description:
□Applicable √Not applicable
148148
80 Notes to items in statement of owner's equityState the name of "other" items and the amount of adjustment to the ending balance of previous year:
□Applicable √Not applicable
81 Assets with ownership or use rights restricted
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemBook value at the end of the periodReason of restrictionMonetary funds50,332,396
Special payment collected for overseas project anddeposited in overseas supervision account and the margindeposit deposited for applying to the bank for letter ofcredit and bank guarantee (Remark 1)Notes receivableInventoriesFixed assets2,821,018,550Loan mortgage (Remark 2)Intangible assetsLong-term receivables5,614,309,162Loan mortgage (Remark 3)Total8,485,660,108/
Other description:
Remark 1: As at December 31, 2020, other monetary funds, including the restricted monetary fund of RMB 50,332,396(as at December 31, 2019: RMB 242,272,475), were the special payment collected for overseas project and deposited inoverseas supervision account and the margin deposit deposited by the Group for applying to the bank for letter of credit andbank guarantee.Remark 2: As at December 31, 2020, the vessel with the book value of RMB 2,821,018,550 (December 31, 2019: thevessel of RMB 5,439,133,909 and the mechanical equipment of RMB 255,133,376) had been used for leaseback with thenancial leasing company, with the nancing term of 3 - 12 years.Remark 3: As at December 31, 2020, the long-term receivables of “building-transfer” project of RMB 5,614,309,162(December 31, 2019: RMB 4,482,230,928) were used as the pledge for obtaining bank loans.
82 Foreign currency monetary items
(1) Foreign currency monetary items
√Applicable □Not applicable
Unit: YuanItem
Ending foreigncurrency balance
Conversion exchange
rate
Ending balance,converted into RMBMonetary fund--Including: USD284,621,1496.52491,857,124,535
EUR21,496,9118.0250172,512,711RUB469,178,9310.087741,146,992KRW5,627,507,5230.006033,765,045ZAR41,730,2700.445818,603,354GBP847,8078.89037,537,259INR82,319,9320.08887,310,010AUD712,0775.01633,571,992AED1,661,1871.77612,950,434BRL1,853,3511.20652,236,068MYR1,314,2361.61732,125,514SGD374,4374.93141,846,499
149149
2020Item
Ending foreigncurrency balance
Conversion exchange
rate
Ending balance,converted into RMBHKD1,531,5490.84161,288,952LKR32,292,5620.03501,130,240NZD6254.70502,941CAD2725.11611,392Accounts receivable--Including: USD374,387,6226.52492,442,841,795
EUR107,941,5638.0250866,231,043AED96,858,8171.7761172,030,945QAR30,087,7931.792653,935,378KRW7,719,068,2700.006046,314,410CAD5,547,0535.116128,379,278GBP1,741,3788.890315,481,373ZAR29,992,4190.445813,370,620SGD2,255,1984.931411,121,283SAR6,132,5361.739010,664,480LKR254,249,9510.03508,898,748HKD7,519,4430.84166,328,363RUB47,976,1120.08774,207,505INR38,282,2990.08883,399,468AUD623,8305.01633,129,318Other receivables--Including: USD9,348,7376.524960,999,574
RUB273,019,5340.087723,943,813AUD2,359,4985.016311,835,950EUR932,5938.0257,484,059ZAR9,029,4480.44584,025,328LKR110,692,2300.0353,874,228INR30,626,1460.08882,719,602KRW147,541,7590.006885,251HKD562,2940.8416473,227OMR4,82816.94981,830SGD6,2844.931430,989Accounts payable--Including: USD174,128,6256.52491,136,171,865
EUR43,917,0978.0250352,434,703SGD2,267,4414.931411,181,659GBP580,7778.89035,163,282JPY74,922,2470.06324,735,086ZAR9,827,5380.44584,381,116RUB35,112,5200.08773,079,368HKD725,7780.8416610,815AUD27,4275.0163137,582LKR3,861,7010.0350135,160CAD22,2955.1161114,063
150150
Item
Ending foreigncurrency balance
Conversion exchange
rate
Ending balance,converted into RMBOther payables--Including: USD17,792,5156.5249116,094,381
RUB237,855,5560.087720,859,932EUR31,6818.0250254,240HKD15,0000.841612,624Short-term borrowings--Including: USD177,060,4256.52491,155,301,567
EUR115,017,8358.0250923,018,126Long-term borrowings--Including: USD150,000,0006.5249978,735,000Long-term payables due within one year--Including: USD70,514,3176.5249460,098,868Long-term payables--Including: USD206,561,1996.52491,347,791,169Other description:
None
(2) Description of overseas business entities, including the disclosure of main overseas business locations, recording
currency and selection basis for important overseas business entities, as well as the reasons for changes in recordingcurrency
□Applicable √Not applicable
83 Hedging
□Applicable √Not applicable
84 Government subsidies
(1) Basic information of government subsidies
√Applicable □Not applicable
Unit: Yuan Currency: CNYTypeAmountItem
Amount included in currentprot or lossFiscal appropriation unrelated to dailyactivities/ scal appropriation
4,620,9754,620,975
(2) Return of government subsidies
□Applicable √Not applicable
Other description:
Not applicable85 Others
□Applicable √Not applicable
VIII. Changes in consolidation scope1 Business combination not under common control
□Applicable √Not applicable
151151
20202 Business combination under common control
□Applicable √Not applicable
3 Counter purchase
□Applicable √Not applicable
4 Disposal of subsidiariesWhether there is single disposal of investment in subsidiaries, i.e. loss of control:
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Registration
place
Business nature
Shareholdingratio of the Group(%)
Proportion of votingrights enjoyed by the
group in total (%)
Reasons fornot being asubsidiaryCCCC TianheMechanical EquipmentManufacturing Co., Ltd(hereafter referred to as“CCCC Tianhe”)
Changshu City,Jiangsu Province
Machinemanufacturing
32.5155.98Remark 1Remark 1: On June 4, 2020, CCCC, an a?liated company controlled by the same parent company, increased the investmentamounting to RMB 1,000,000,000 to CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd., the holding subsidiary ofthe 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 actingin 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 enjoyedby CCCC was changed to 61.12% and the proportion of voting rights enjoyed by the Company was changed to 16.52%, so theCompany no longer had control over CCCC Tianhe. Since June 4, 2020, CCCC Tianhe would no longer be included into thescope of combination of the Group, but would be accounted as nancial assets measured at fair value through current prot orloss. Relevant nancial information of CCCC Tianhe is listed as follows:
May 31, 2020Book value
December 31, 2019
Book valueCurrent assets2,748,975,0212,278,000,630Non-current assets2,935,704,8012,838,524,895Current liabilities(3,649,803,130)(3,456,472,738)Non-current liabilities(1,124,687,149)(645,270,749)Total910,189,5431,014,782,038Less: Minority equity(614,227,994)(684,876,398)Less: Fair value of remaining equity(325,826,619)Gains from disposal29,865,070Disposal consideration-
From the beginning of the year to the disposal dateOperating revenue283,306,846Operating cost166,238,694Net loss(1,224,958)5 Changes in consolidation scope due to other reasonsDescription of the changes (such as new subsidiary, liquidation of subsidiary) in consolidation scope due to otherreasons and relevant information:
□Applicable √Not applicable
152152
6 Others
□Applicable √Not applicable
IX. Interests in other entities1 Interests in subsidiaries
(1) Subsidiaries of the Group:
√Applicable □Not applicable
Name of subsidiaryPrincipal place of business
Registrationplace
Businessnature
Shareholding ratio (%)Way ofacquisitionDirectIndirectShanghai Zhenhua Port MachineryHeavy Industries Co., Ltd.
Chongming, Shanghai
Chongming,Shanghai
Machinemanufacturing
94.76%
Establishment
by investingShanghai Zhenhua Port Machinery(Hong Kong) Co., Ltd.
Hong KongHong KongShipping100.00%
Establishment
by investingShanghai Zhenhua Shipping Co., Ltd.Pudong New Area, Shanghai
Pudong NewArea, Shanghai
Shipping55.00%
Establishmentby investingNantong Zhenhua Heavy EquipmentManufacturing Co., Ltd.
Nantong City, JiangsuProvince
Nantong
City, JiangsuProvince
Machinemanufacturing
100.00%
Establishmentby investingZPMC Transmission Machinery(Nantong) Co., Ltd.
Nantong City, Jiangsu
Province
NantongCity, Jiangsu
Province
Machinemanufacturing
50.75%
Establishmentby investingZPMC Electric Co., Ltd.Pudong New Area, Shanghai
Pudong NewArea, Shanghai
Electricequipmentresearch anddevelopment
100.00%
Establishmentby investingShanghai Zhenhua Ocean EngineeringService Co., Ltd
Yangshan Bonded Port Area,
Shanghai
YangshanBonded PortArea, Shanghai
Shipping100.00%
Establishmentby investingZPMC Machinery Equipment ServicesCo., Ltd.
Pudong New Area, Shanghai
Pudong NewArea, Shanghai
Technicalconsultancy
100.00%
Establishmentby investingZPMC Netherlands Co?peratie U.A.Rotterdam, Netherlands
Rotterdam,Netherlands
Trade sales100.00%
Establishmentby investingZPMC Netherlands B.V.Rotterdam, Netherlands
Rotterdam,Netherlands
Trade sales100.00%
Establishmentby investingVerspannen B.V.Rotterdam, Netherlands
Rotterdam,Netherlands
Machinemanufacturing
100.00%
Businesscombination notunder commoncontrolZPMC Espana S.L.Los Barrios, Spain
Los Barrios,Spain
Trade sales100.00%
Establishment
by investingZPMC Italia S.r.l. Vado Ligure Port, Italy
Vado LigurePort, Italy
Trade sales100.00%
Establishment
by investingZPMC GmbH HamburgHamburg, Germany
Hamburg,Germany
Trade sales100.00%
Establishment
by investingZPMC Lanka Company (Private)Limited
Colombo, Sri Lanka
Colombo, SriLanka
Trade sales70.00%
Establishment
by investingZPMC North America Inc.Delaware, USADelaware, USATrade sales100.00%
Establishment
by investingZPMC Korea Co., Ltd.Pusan, KoreaPusan, KoreaTrade sales100.00%
Establishment
by investingZPMC Engineering Africa (Pty) Ltd.
Kwazulu-Natal Province,Republic of South Africa
Kwazulu-Natal Province,Republic ofSouth Africa
Trade sales100.00%
Establishmentby investingZPMC Engineering (India) PrivateLimited
Maharashtra State, India
MaharashtraState, India
Trade sales100.00%
Establishment
by investing
153153
2020Name of subsidiaryPrincipal place of business
Registrationplace
Businessnature
Shareholding ratio (%)Way ofacquisitionDirectIndirectZPMC Southeast Asia Holding Pte.Ltd.
SingaporeSingaporeTrade sales100.00%
Establishmentby investingZPMC Engineering (Malaysia) Sdn.Bhd.
MalaysiaMalaysiaTrade sales70.00%
Establishment
by investingZPMC Australia Company (Pty) Ltd.New South Wales, Australia
New SouthWales, Australia
Trade sales100.00%
Establishmentby investingShanghai Zhenhua Heavy IndustriesPort Machinery General EquipmentCo., Ltd.
Pudong New Area, Shanghai
Pudong NewArea, Shanghai
Machinemanufacturing
100.00%
Businesscombinationunder commoncontrolShanghai Port Machinery HeavyIndustry Co., Ltd
Pudong New Area, Shanghai
Pudong NewArea, Shanghai
Machinemanufacturing
74.02%
Businesscombinationunder commoncontrolZPMC Zhangjiagang Port MachineryCo., Ltd.
Zhangjiagang City, Jiangsu
Province
ZhangjiagangCity, JiangsuProvince
Machinemanufacturing
90.00%
Businesscombinationunder commoncontrolNanjing Ninggao New ChannelConstruction Co., Ltd
Nanjing City, Jiangsu
Province
Nanjing City,JiangsuProvince
Engineeringconstruction
100.00%
Establishmentby investingZPMC Qidong Marine EngineeringCo., Ltd.
Nantong City, JiangsuProvince
NantongCity, Jiangsu
Province
Machinemanufacturing
67.00%
Businesscombination notunder common
controlJiahua Shipping Co., Ltd. Hong KongHong KongShipping70.00%
Establishment
by investingZhenhua Pufeng Wind Energy(HongKong) Co., Ltd.
Hong KongHong KongShipping51.00%
Establishment
by investingZPMC Brazil Servi?o Portuários LTDARio DE Janeiro, Brazil
Rio DE Janeiro,
Brazil
Trade sales80.00%
Establishment
by investingZPMC Limited Liability CompanyMoscow, RussiaMoscow, RussiaTrade sales85.00%
Establishment
by investingZPMC NA East Coast lnc. VirginiaDelaware, USATrade sales100.00%
Establishment
by investingCCCC Investment & DevelopmentQidong Co., Ltd. (Remark 1)
Nantong City, JiangsuProvince
NantongCity, JiangsuProvince
Engineeringconstruction
49.36%
Establishmentby investingCCCC Liyang Urban Investment andConstruction Co., Ltd. (Remark 2)
Liyang City, Jiangsu Province
Liyang City,
Jiangsu
Province
Engineeringconstruction
48.00%
Establishmentby investingZPMC UK LDCardi?, UKCardi?, UKTrade sales100.00%
Establishment
by investingZPMC Middle East FzeDubai, UAEDubai, UAETrade sales100.00%
Establishment
by investingCCCC (Huaian) ConstructionDevelopment Co., Ltd.
Huaian City, Jiangsu Province
Huaian City,JiangsuProvince
Engineeringconstruction
71.57%
Establishment
by investingCCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
Zhenjiang City, JiangsuProvince
ZhenjiangCity, JiangsuProvince
Engineeringconstruction
70.00%
Establishmentby investingCCCC Yongjia ConstructionDevelopment Co., Ltd.
Wenzhou City, ZhejiangProvince
WenzhouCity, Zhejiang
Province
Engineeringconstruction
80.00%
Establishmentby investingCCCC Zhenhua Lvjian Technology(Ningbo) Co., Ltd. (Remark 3)
Ningbo City, ZhejiangProvince
Ningbo City,
Zhejiang
Province
Engineeringconstruction
40.00%
Establishmentby investing
154154
Name of subsidiaryPrincipal place of business
Registration
place
Businessnature
Shareholding ratio (%)Way ofacquisitionDirectIndirectZPMC Hotel Co., Ltd.Pudong New Area, Shanghai
Pudong NewArea, Shanghai
Hotel andcatering
100.00%
Businesscombination notunder commoncontrolCCCC Rudong ConstructionDevelopment Co., Ltd.
Rudong City, JiangsuProvince
RudongCity, JiangsuProvince
Engineeringconstruction
14.80%55.36%
Establishmentby investingZPMC Latin America HoldingCorporation
PanamaPanamaTrade sales100.00%
Establishment
by investingTerminexus Co., Ltd.Hong KongHong Kong
Technicalconsultancy
100.00%
Establishmentby investingGreenland Heavylift (Hong Kong)Limited (Remark 4)
Hong KongHong KongShipping50.00%
Businesscombination notunder commoncontrolGPO Grace LimitedMarshall IslandsMarshall IslandsShipping100.00%
Businesscombination notunder commoncontrolGPO Amethyst LimitedMarshall IslandsMarshall IslandsShipping100.00%
Businesscombination notunder commoncontrolGPO Sapphire LimitedMarshall IslandsMarshall IslandsShipping100.00%
Businesscombination notunder commoncontrolGPO Emerald LimitedMarshall IslandsMarshall IslandsShipping100.00%
Businesscombination notunder commoncontrolGPO Heavylift LimitedCayman IslandsCayman IslandsShipping60.00%
Businesscombination notunder commoncontrolGPO Heavylift ASOslo, NorwayOslo, NorwayShipping100.00%
Businesscombination notunder commoncontrolGPO Heavylift Pte LtdSingaporeSingaporeShipping100.00%
Businesscombination notunder commoncontrolXiong’an Zhenhua Co., Ltd.Baoding City, Hebei Province
Baoding City,Hebei Province
Intelligentservice
100.00%
Establishmentby investingZPMC Fuzhou O?shore ConstructionCo., Ltd.
Fuzhou City, Fujian Province
Fuzhou City,Fujian Province
Maritimeengineeringconstruction
100.00%
Establishmentby investingCCCC (Dongming) Investment andConstruction Co., Ltd.
Heze City, ShandongProvince
Heze City,ShandongProvince
Engineeringconstruction
70.00%
Establishmentby investingZhenhai No. 2 Drilling LimitedHong KongHong Kong
Drilling
services
100.00%
Establishmentby investingZhenhai No.3 Drilling LimitedHong KongHong Kong
Drilling
services
100.00%
Establishmentby investing
155155
2020Name of subsidiaryPrincipal place of business
Registration
place
Businessnature
Shareholding ratio (%)Way ofacquisitionDirectIndirectZhenhai No. 5 Drilling LimitedHong KongHong Kong
Drillingservices
100.00%
Establishment
by investingZhenhai No. 6 Drilling LimitedHong KongHong Kong
Drillingservices
100.00%
Establishment
by investingThe shareholding ratio in subsidiaries is di?erent from the proportion of voting rights:
NoneThe basis for holding half or less of the voting rights but still controlling the invested entity, and the basis for holdingmore than half of the voting rights but not controlling the invested entity:
NoneThe basis for control of the important structured entities included in the consolidation scope:
NoneBasis for determining whether the Company is an agent or a principal:
NoneOther description:
Remark 1: By signing the agreement for concerted action with CCCC Tianjin Dredging Co., Ltd., the Group had obtained95% voting power in the board of shareholders and 100% voting power in the board of directors of such company (CCCCInvestment & Development Qidong Co., Ltd.). In accordance with the regulations of the articles of association of suchcompany, the Group had obtained the control right thereof, thus, such company was included in the Group’s sconsolidationscope.Remark 2: By signing the agreement for concerted action with CCCC Shanghai Dredging Co. Ltd. and CCCC EastChina Investment Co., Ltd., the Group had obtained 76% voting power in the board of shareholder and 71% voting powerin the board of directors of such company (CCCC Liyang Urban Investment and Construction Co., Ltd.). In accordance withthe regulations of the articles of association of such company, the Group had obtained the control rights thereof, thus, suchcompany was included in the Groups’ consolidation scope.Remark 3: By signing the agreement for concerted action with CCCC Highway Consultants Co. Ltd. and CCCCEquipment Manufacturing Marine Heavy Industry Division, the Group had obtained 50% voting power in the board ofshareholders and 60% voting power of the board of directors of 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 thecontrol 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 directorsof such company (Greenland Heavylift (Hong Kong) Limited), including chairman of the board. As required in the articles ofassociation 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, theGroup has the substantial control over such company, and such company was included in the Group’s consolidation scopefor the nancial statements.
(2) Major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNYName of subsidiary
Shareholdingratio of minority
shareholder
Prot or lossattributable to theminority shareholderin current period
Dividends declared tominority shareholdersin current period
Balance of minorityshareholders' equityat the end of theperiodZPMC Transmission Machinery(Nantong) Co., Ltd.
49.25%44,043,728-31,907,452826,201,602CCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
30%9,907,132-14,523,578203,991,836Greenland Heavylift(HongKong) Limited
50%-44,329,031248,026,815Description of the di?erence between the shareholding ratio of minority shareholders and the proportion of voting rightratio in subsidiaries:
□Applicable √Not applicable
156156
Other description:
√Applicable □Not applicable
Subsidiaries with signicant minority equity:
2020
Shareholdingratio ofminorityshareholder
Capitalcontributed /(withdrawn)by minorityshareholder
Prot or lossattributable to
the minorityshareholder
Dividends
paid tominorityshareholder
Specialreserveswithdrawnby minorityshareholder
Accumulatedminorityequity at theend of theyearZPMC TransmissionMachinery (Nantong)Co., Ltd.
49.25%200,000,00044,043,728(31,907,452)-826,201,602CCCC ZhenjiangInvestment ConstructionManagementDevelopment Co., Ltd.
30.00%(141,669,170)9,907,132(14,523,578)-203,991,836Greenland Heavylift(HongKong) Limited
50.00%-(44,329,031)-- 248,026,8152019
Shareholding
ratio ofminorityshareholder
Capitalcontributedby minorityshareholder
Changes inaccountingpolicies -Application ofnew nancialinstrumentstandard
Protor lossattributableto theminorityshareholder
Dividends paid
to minorityshareholder
Specialreserveswithdrawnby minorityshareholder
Accumulatedminority equityat the end ofthe yearCCCC TianheMechanical EquipmentManufacturing Co., Ltd
67.49%-(6,011,469)48,481,428-53,477684,876,399ZPMC TransmissionMachinery (Nantong)Co., Ltd.
49.25%614,065,326----614,065,326CCCC ZhenjiangInvestmentConstructionManagementDevelopment Co., Ltd.
30.00%--14,514,024--350,277,452Greenland Heavylift(HongKong) Limited
50.00%--(2,667,244)(973,150)-292,355,846
(3) Main nancial information of major non-wholly-owned subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNYName of subsidiary
December 31, 2020Currentassets
Non-currentassets
Total assets
Currentliabilities
Non-currentliabilities
Total liabilitiesCCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
733,178,64714,701733,193,348-53,220,561-53,220,561Greenland Heavylift(HongKong) Limited
121,027,7391,953,698,8582,074,726,597-455,304,675-1,130,294,502-1,585,599,177ZPMC TransmissionMachinery (Nantong) Co., Ltd.
1,439,325,230394,262,2581,833,587,488-156,331,859--156,331,859
157157
2020
Name of subsidiary
December 31, 2020Currentassets
Non-current
assets
Total assets
Currentliabilities
Non-current
liabilities
Total liabilitiesCCCC Tianhe MechanicalEquipment ManufacturingCo., LtdName of subsidiary
December 31, 2019Currentassets
Non-current
assets
Total assets
Currentliabilities
Non-current
liabilities
Total liabilitiesCCCC Zhenjiang InvestmentConstruction ManagementDevelopment Co., Ltd.
377,510,693853,738,5411,231,249,234-63,657,726-63,657,726Greenland Heavylift(HongKong) Limited
105,658,7412,139,263,0952,244,921,836-429,544,507-1,233,274,882-1,662,819,389ZPMC TransmissionMachinery (Nantong) Co.,Ltd.
1,061,226,741393,323,3781,454,550,119-207,716,971-207,716,971CCCC Tianhe MechanicalEquipment ManufacturingCo., Ltd
2,245,394,1112,871,131,4145,116,525,525-3,456,472,738-645,270,749-4,101,743,487Name of subsidiary
Amount incurred in the current periodOperating
revenue
Net prot
Total comprehensiveincome
Cash ows fromoperating activitiesCCCC Zhenjiang Investment ConstructionManagement Development Co., Ltd.
33,023,77333,023,773517,498,836Greenland Heavylift (HongKong) Limited261,736,949-54,103,269-88,658,0616,619,732ZPMC Transmission Machinery (Nantong) Co., Ltd.736,059,04789,433,61089,433,61066,499,450CCCC Tianhe Mechanical EquipmentManufacturing Co., Ltd
Name of subsidiary
Amount incurred in the previous periodOperatingrevenue
Net prot
Total comprehensiveincome
Cash ows fromoperating activitiesCCCC Zhenjiang Investment ConstructionManagement Development Co., Ltd.
48,380,07948,380,079-256,615,368Greenland Heavylift (HongKong) Limited245,078,363-16,628,814-7,122,33895,869,438ZPMC Transmission Machinery (Nantong) Co., Ltd.650,913,18347,393,36047,393,36014,617,991CCCC Tianhe Mechanical EquipmentManufacturing Co., Ltd
1,163,944,62671,810,93471,810,93455,406,683Other description:
None
(4) Major restrictions on the use of assets of enterprise group and the repayment of debts of enterprise group
□Applicable √Not applicable
(5) Financial support or other supports provided to structured entities included in the scope of consolidated nancial
statements
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
2 Transactions in which the owner's equity share of a subsidiary changes and the subsidiary is still under control
□Applicable √Not applicable
158158
1.Equity in joint ventures and associates
√Applicable □Not applicable
(1) Major joint ventures or associates
√Applicable □Not applicable
Unit: Yuan Currency: CNYName of joint venture or associate
Principalplace ofbusiness
Registration
place
Business nature
Shareholding ratio (%)
AccountingtreatmentDirectIndirectJoint venturesJiangsu Longyuan Zhenhua MarineEngineering Co., Ltd
JiangsuNantong, Jiangsu
Marine engineeringconstruction
50%Equity methodZPMC Mediterranean LimanMakinalari Ticaret Anonim Sirketi
Istanbul,Turkey
Istanbul, Turkey
Technical servicefor port equipment
50%Equity methodZhenhua Marine Energy (HK) Co., Ltd.Hong KongHong KongShipping51%Equity methodCranetech Global Sdn.Bhd.MalaysiaMalaysia
Technical servicefor port equipment
49.99%Equity method
ZPMC-OTL MARINE CONTRACTORLIMITED
Hong KongHong KongShipping50%Equity methodAssociatesCCCC Marine Engineering &Technology Research Center Co., Ltd.
Shanghai
Pudong New Area,Shanghai
Marine technologydevelopment andconsulting
25%Equity methodCCCC Estate Yixing Co., Ltd.Jiangsu Wuxi, Jiangsu
Real estatedevelopment
20%Equity methodZPMC Changzhou Coatings Co., LtdJiangsu
Changzhou,Jiangsu
Paint manufacture20%Equity methodCCCC Financial Leasing Co., LtdShanghai
Pudong New Area,Shanghai
Finance lease30%Equity methodCCCC Yancheng ConstructionDevelopment Co., Ltd.
JiangsuYancheng, Jiangsu
Engineering projectconstruction
25%Equity methodSuzhou Chuanglian Electric Drive Co.,Ltd.
JiangsuSuzhou, Jiangsu
Electric equipmentmanufacturing
20%Equity methodChina Communications ConstructionUSA Inc.
USAUSA
Port, channel,highway and bridgeconstruction
24%Equity methodCCCC South American RegionalCompany SARL
USAUSA
Port, channel,highway and bridgeconstruction
17%Equity methodZPMC Southeast Asia Pte. Ltd.SingaporeSingaporeTrade sales40%Equity methodShanghai Ocean EngineeringEquipment Manufacturing InnovationCenter Co., Ltd.
Shanghai China
Development ofocean engineeringtechnology
8.97%Equity method
Shanghai Xingyi ConstructionTechnology Co., Ltd.
Shanghai Shanghai
Buildingengineering
30%Equity methodCCCC Xiongan Urban ConstructionDevelopment Co., Ltd.
HebeiXiongan, Hebei
Engineering projectconstruction
15.00%Equity method
Description of the di?erence between shareholding ratio and proportion of voting rights in joint venture or associates:
NoneBasis for holding less than 20% of voting rights but having signicant inuence, or holding 20% or more of voting rightsbut not having signicant inuence:
None
(2) Main nancial information of major joint ventures:
□Applicable √Not applicable
159159
2020 (3) Main nancial information of major associates:
√Applicable □Not applicable
Unit: Yuan Currency: CNYDecember 31, 2020/Amount incurred
in the current period
December 31, 2019/Amount incurred in
the previous periodCCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., Ltd
CCCC FinancialLeasing Co., LtdCurrent assets22,819,943,898-19,939,324,543-Non-current assets24,486,499,994-21,339,769,559-Total assets47,306,443,892-41,279,094,102-Current liabilities-20,424,045,460--21,496,787,586-Non-current liabilities-16,947,008,625--11,265,256,085-Total liabilities-37,371,054,085--32,762,043,671-Minority equity2,697,430,648-2,565,417,538-Other equity instrument - Perpetual bond998,000,000---Shareholders’ equity attributable the parentcompany
6,239,959,159-5,951,632,893-Share of net assets held based on shareholdingratio
1,883,150,758-1,785,702,878-Adjustments------Goodwill------Unrealized prots of internal transactions------Others----Book value of equity investment in associates1,883,150,758-1,785,702,878-Fair value of equity investment in associates withpublic o?er
----Operating revenue-2,740,010,098-2,052,054,187Financial expenses-interest income-17,688,700-18,917,032Financial expenses - interest expenses-52,265,036-51,051,246Income tax expenses-214,170,405-126,731,537Net prot-526,789,103-386,156,164Net prot from discontinuing operation----Other comprehensive income----Net of tax of other comprehensive income --4,238,920-1,034,782Total comprehensive income-522,550,183-387,190,946Total comprehensive income attributable to theparent company
-390,537,074-298,442,527Dividends received from associates in the currentyear
----Dividends distributed-102,210,808-32,500,000Including: dividends distributed to investors ofother equity instruments
-36,500,000--Other descriptionNone
160160
(4) Summary of nancial information of insignicant joint ventures and associates:
√Applicable □Not applicable
Unit: Yuan Currency: CNYDecember 31, 2020/Amountincurred in the current period
December 31, 2019/Amount
incurred in the previous
periodJoint ventures:
Total book value of investment277,261,963312,812,059Total number of following items by shareholding ratio-- Net prot11,542,45817,192,511-- Other comprehensive income-- Total comprehensive income11,542,45817,192,511Associates:
Total book value of investment881,820,163775,158,808Total number of following items by shareholding ratio-- Net prot8,917,6894,309,481-- Other comprehensive income-27,392,214-2,315,141-- Total comprehensive income-18,474,5251,994,340Other descriptionNone
(5) Description of the significant restrictions on the ability of joint ventures or associates to transfer funds to the
Company
□Applicable √Not applicable
(6) Excess loss of joint ventures or associates
□Applicable √Not applicable
(7) Unrecognized commitments related to joint venture investment
□Applicable √Not applicable
(8) Contingent liabilities related to investment in joint ventures or associates
□Applicable √Not applicable
3 Signicant joint operation
□Applicable √Not applicable
4 Equity in structured entities not included in the scope of consolidated nancial statementsDescription of structured entities not included in the scope of consolidated nancial statements:
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
X. Risks related to nancial instruments
√Applicable □Not applicable
1 Classication of nancial instrumentsThe book values of various nancial instruments on the balance sheet date:
161161
20202020Financial assets
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured atfair value through the othercomprehensive income
TotalStandardDesignatedStandardDesignatedMonetary funds--2,948,074,736--2,948,074,736Held-for-trading nancialassets
1,601,623,650----1,601,623,650Notes receivable--753,000--753,000Receivables nancing---362,006,319-362,006,319Accounts receivable--7,227,065,255--7,227,065,255Other receivables--321,158,686--321,158,686Non-current assets duewithin one year
--1,884,370,444--1,884,370,444Investment in other equityinstruments
----61,505,75161,505,751Long-term receivables--5,077,114,342--5,077,114,342Other non-current nancialassets
330,094,057----330,094,0571,931,717,707-17,458,536,463362,006,31961,505,75119,813,766,240Financial liabilities
Financial liabilities measured at fairvalue through the current prot or loss
Financial liabilitiesmeasured atamortized cost
TotalStandardDesignatedShort-term borrowings--17,795,076,56517,795,076,565Held-for-trading nancial liabilities458,882458,882Notes payable--3,600,725,8923,600,725,892Accounts payable--7,773,903,1477,773,903,147Other payables--465,042,916465,042,916Non-current liabilities due within one year--1,374,465,3191,374,465,319Long-term borrowings--16,850,299,74216,850,299,742Long-term payables--1,632,757,9321,632,757,932
458,882-49,492,271,51349,492,730,3952019Financial assets
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured atfair value through the othercomprehensive income
TotalStandardDesignatedStandardDesignatedMonetary funds--3,310,297,451--3,310,297,451Held-for-trading nancialassets
1,739,792,062----1,739,792,062Notes receivable--5,650,000--5,650,000
162162
Financial assets measured atfair value through the current
prot or loss
Measured atamortized cost
Financial assets measured atfair value through the othercomprehensive income
TotalStandardDesignatedStandardDesignatedReceivables nancing---406,408,604-406,408,604Accounts receivable--4,966,175,528--4,966,175,528Other receivables--546,907,645--546,907,645Non-current assets duewithin one year
--1,313,203,581--1,313,203,581Investment in other equityinstruments
----61,981,26861,981,268Long-term receivables--5,227,728,420--5,227,728,420
1,739,792,062-15,369,962,625406,408,60461,981,26817,578,144,559
Financial liabilities
Financial liabilities measured at fairvalue through the current prot or loss
Financial liabilitiesmeasured at amortized
cost
TotalStandardDesignatedShort-term borrowings--22,001,319,38022,001,319,380Held-for-trading nancial liabilities7,312,741--7,312,741Notes payable--3,420,945,4513,420,945,451Accounts payable--7,869,378,3657,869,378,365Other payables--694,418,175694,418,175Non-current liabilities due within one year--7,287,484,5137,287,484,513Long-term borrowings--8,413,339,9868,413,339,986Long-term payables--1,741,945,6361,741,945,636
7,312,741-51,428,831,50651,436,144,2472 Transfer of nancial assetsTransferred nancial assets derecognized as a whole but involved continuouslyAs at December 31, 2020, the book value of the bank acceptance bill given by the Group upon endorsement to thesupplier for accounts payable settlement amounted to RMB 571,531,799 (December 31, 2019: RMB 738,496,754). As atDecember 31, 2020, the maturity term of such bill was 1 - 12 months. In accordance with the relevant provisions of theNegotiable Instruments Law, if the acceptance bank refuses to pay, the bill holder shall be entitled to recourse to the Group(“continue to be involved”).The Group considered that it had transferred almost all risks and rewards of such bill, therefore,the aforesaid book value and the book value of relevant settled accounts payable should be derecognized as a whole.The maximum losses and undiscounted cash ows that continue to be involved were equal to the book value. The Groupconsidered that the fair value with continuous involvement was insignicant.In 2020, the Group failed to recognized relevant gain or loss on the date of transfer of the above nancial assets (Year2019: None).The Group had no income or expense which had been recognized for the current year or accumulativelyas it had been derecognized as a whole but continued to be involved in the financial assets. The endorsement of bankacceptance bill receivable happened in this year evenly.3 Financial instrument risksVarious nancial instrument risks the Group faces during the routine activities mainly include the credit risk, liquidity riskand market risk (including the exchange rate risk and interest rate risk). Main nancial instruments of the Group include themonetary funds, equity investment, borrowings, notes receivable, accounts receivable, accounts receivable nancing, long-term receivables, notes payable and accounts payable.The Group's overall risk management plan is targeted at the unpredictability of nancial market, trying to minimize thepotential adverse inuence on the Group’s nancial results.
163163
2020Credit riskThe Group manages the credit risks by the classication of portfolios. The credit risk is mainly from accounts receivablenancing, accounts receivable, other receivables and long-term receivables.Other nancial assets of the Group include monetary funds, held-for-trading nancial assets, other equity investmentinstruments and other non-current nancial assets, of which credit risks are from the counterpart's default, and the maximumexposure 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 centralizedmanner by customer/counterpart, geographic region and industry. As the Group’s customers of accounts receivable andlong-term receivables are widely dispersed across sectors and industries, there is no signicant credit risk concentrationwithin the Group. The Group did not hold any collateral or other credit enhancements for the balance of accounts receivableand long-term receivables, but did the same for the balance of long-term receivables.As the counterparts of monetary funds, receivables nancing and derivative nancial instruments are banks in goodstanding and having relatively higher credit rating, these nancial instruments have low credit risk.
In addition, as for the receivables nancing, accounts receivable nancing, accounts receivable, other receivables, andlong-term accounts receivable, the Group has set relevant policies to control the credit risk exposure. The Group, based onthe customers' nancial positions, the possibility of obtaining guarantees from the third party, credit records and other factorssuch as the current market conditions, evaluates the credit qualications 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 willtake measures, such as requesting a payment in writing, shortening the credit period or canceling the credit term, to ensurethat the Group's overall credit risks are within the controllable scope.
Judgment criteria for signicant increase in credit risk
On each balance sheet date, the Group will evaluate the credit risks of relevant nancial instruments to conrm whetherthey have had significant increase or not after the initial recognition. On such confirmation, the Group will consider thereasonable and well-founded information which can be obtained without paying unnecessary surcharge or e?ort, includingthe information on qualitative and quantitative analysis based on the Group’s historical date, external credit risk rating andperspectiveness. Based on the individual financial instrument or portfolio of financial instruments with similar credit riskcharacteristics, the Group determines the changes in default risk in nancial instruments during the estimated duration bycomparing the default risks in nancial instruments on the balance sheet date with those on the initial recognition date.
In case of one or more quantitative or qualitative standards, the Group will consider that the credit risk of a nancialinstrument has had signicant increase:
(1) The quantitative standard mainly refers to the situation that the reporting date is overdue for certain days.
(2) The qualitative standard mainly refers to the situation that the debtor encounters any significant and adverse
operating or nancial change, or prepares the list of warning customers.
Denition of assets with credit impairment
In order the determine whether there is credit impairment, the Group adopts a denition standard to keep pace with theinternal credit risk management target regarding relevant nancial instruments, and takes the quantitative and qualitativeindicators into account. The Group mainly considers the following factors on evaluating whether the debtor has had creditimpairment:
(1)The issuer or the debtor su?ers signicant nancial di?culties;
(2)The debtor violates any contract, such as default or delay in repayment of interest or principal;
(3)Considering the economic or contractual reasons relevant to the debtor’s financial difficulty, the debtor makes
concession which it will not make in any other circumstance;
(4)The debtor is likely to go bankrupt or carry out other nancial reorganization;
(5)The active market of such nancial assets disappears due to the issuer’s or the debtor’s nancial di?culty;
(6)A nancial asset is purchased or generated through the substantial discount, and such discount reects the fact of
credit loss.
The credit impairment of nancial assets may be caused by several events, not just one event which can be individuallyidentied.
Parameters for the measurement of expected credit loss
Based on the information whether the credit risk has had signicant increase or there is credit impairment, the Groupmakes the provision for impairment of expected credit losses of various assets for 12 months or the entire duration. Keyparameters for the measurements of expected credit loss include the probability of default, loss given default and exposureat default. Considering the quantitative analysis on historical statistical data (including the rating of the counterpart, way ofguarantee and category of collateral) and prospective information, the Group builds models for probability of default, lossgiven default and exposure at default.
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Relevant denitions:
(1)The probability of default refers to the probability that the debtor may fail to perform the payment obligation over the
next 12 months or the entire duration. The Group’s probability of default is adjusted based on the credit loss model, addingthe prospective information to reect the debtor's probability of default in the current macroeconomic environment;
(2)The loss given default refers to the expectation made by the Group regarding the degree of loss on default risk
exposure. As the type of counterpart, way of recourse and priority as well as collateral may be di?erent, the loss given defaultmay also be di?erent. The loss given default refers to the percentage of the risk exposure loss at default, calculated basedon the term 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 ofexpected credit loss. Through the historical data analysis, the Group identies the key economic indicators a?ecting thecredit risks in various types of business and the expected credit loss.The impact of these economic indicators on the probability of default and the loss given default is di?erent for di?erenttype of business. In such course, the Group makes the reference to the authoritative predictive values, expect theseeconomic indicators based on results of those values, and determine the impact of these economic indicators on theprobability of default and the loss given default.2020The maximum risk exposure and the year-end classication of credit risk degrees regarding the Group’s nancial assetsand contract assets are as follows:
Estimated credit lossover the next 12 months
Estimated credit loss in the entire lifecycle
TotalStage IStage IIStage IIISimple methodMonetary funds2,948,074,736---2,948,074,736Held-for-trading nancial assets1,601,623,650---1,601,623,650Notes receivable753,000---753,000Accounts receivable---7,227,065,2557,227,065,255Contract assets---2,063,296,8902,063,296,890Receivables nancing362,006,319---362,006,319Other receivables836,659,90476,750,259913,410,163Non-current assets due within one year1,884,370,444---1,884,370,444Other non-current nancial assets330,094,057---330,094,057Other non-current assets---702,933,384702,933,384Long-term receivables5,077,114,342---5,077,114,342
13,040,696,45276,750,259-9,993,295,52923,110,742,2402019
Estimated credit loss
in future 12 months
Estimated credit loss in the entire lifecycle
TotalStage IStage IIStage IIISimple methodMonetary funds3,310,297,451---3,310,297,451Held-for-trading nancial assets1,739,792,062---1,739,792,062Notes receivable5,650,000---5,650,000Accounts receivable---4,966,175,5284,966,175,528Receivables nancing406,408,604---406,408,604Other receivables1,097,763,73778,797,771--1,176,561,508Non-current assets due within one year1,313,203,581---1,313,203,581Long-term receivables5,227,728,420---5,227,728,420
13,100,843,85578,797,771-4,966,175,52818,145,817,154
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2020Liquidity riskSubsidiaries within the Group are responsible for their own cash-flow prospects. The financial section of the heado?ce continues to monitor the short-term and long-term capital demands at the group level after collecting the cash owsprospects of all subsidiaries, to guarantee the sufficient cash reserve and cashable securities. Meanwhile, the financialsection of the head office continues to monitor the financial and non-financial indicators prescribed in credit-grantingagreements and loan agreements, to ensure that the Group can get su?cient line of credit from major nancial institutions,so as to satisfy the short-term and long-term capital demands of all subsidiaries of the Group.
As at December 31, 2020, the various financial liabilities of the Group are listed as follows by due dates based onundiscounted contracted cash ows (including principal and interest):
2020Within 1 year1-2 years2-5 yearsOver 5 yearsTotalShort-term borrowings18,041,418,617---18,041,418,617Held-for-trading nancial liabilities458,882---458,882Notes payable3,600,725,892---3,600,725,892Accounts payable7,773,903,147---7,773,903,147Other payables481,065,700---481,065,700Non-current liabilities due within oneyear
1,480,593,478---1,480,593,478Long-term borrowings-2,448,871,94414,087,369,2451,621,865,69018,158,106,879Long-term payables-555,681,491579,063,124805,440,3491,940,184,964
31,378,165,7163,004,553,43514,666,432,3692,427,306,03951,476,457,559As at December 31, 2019, the various financial liabilities of the Group are listed as follows by due dates based onundiscounted contracted cash ows (including principal and interest):
2019Within 1 year1-2 years2-5 yearsOver 5 yearsTotalShort-term borrowings22,371,944,008---22,371,944,008Held-for-trading nancial liabilities7,312,741---7,312,741Notes payable3,420,945,451---3,420,945,451Accounts payable7,869,378,365---7,869,378,365Other payables711,389,996---711,389,996Non-current liabilities due within oneyear
7,533,454,596---7,533,454,596Long-term borrowings-2,959,780,0135,249,838,271879,572,2059,089,190,489Long-term payables-683,803,609535,717,708609,414,9841,828,936,301
41,914,425,1573,643,583,6225,785,555,9791,488,987,18952,832,551,947Market riskInterest rate riskThe Group’s interest rate risk is mainly from such long-term interest-bearing liabilities as long-term bank borrowings andlong-term payables. Floating-rate nancial liabilities expose the Group to cash ow interest rate risk while xed-rate nancialliabilities expose the Group to fair value interest rate risk. The Group determines the relative proportion of contracts withxed interest rate and contracts with oating interest rate according to the current market environment. As at December 31,2020, the Group’s long-term interest-bearing liabilities mainly were the oating rate contracts priced in USD, and the xedrate contracts priced in RMB.
The market interest rate uctuating risks that the Group encounters are mainly relevant to the long-term liabilities wherethe interest is calculated at the oating interest rate.The nance department in the headquarters of the Group continues monitoring and controlling the interest rate level ofthe Group. The increase in interest rate will increase the costs of the new interest-bearing debts and the interest expensesof interest-bearing debts failing to be paid up by the Group and subject to the interest calculation at oating interest rate,and will, signicantly and adversely, a?ect the Group's nancial results; the management will control partial interest rate riskbased on the newest market situation through the swap contract and other interest rate swap arrangements. In 2020 and2019, the Group had no interest rate swap arrangement.
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The following table shows the sensitivity analysis of the interest rate risk, reecting the e?ect of the reasonable andpossible changes in the interest rate on net prot or loss (through the impact on loan with oating interest rate) and the netamount of other comprehensive income after tax, based on the assumption of no change in other variables.2020
Base pointIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensiveincome Increase / (Decrease)
Total shareholders' equityIncrease / (Decrease)RMB100(34,223,642)-(34,223,642)RMB(100)34,223,642-34,223,642
2019
Base pointIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensiveincome Increase / (Decrease)
Total shareholders' equityIncrease / (Decrease)RMB100(58,026,976)-(58,026,976)RMB(100)58,026,976-58,026,976
Exchange rate riskThe Group is exposed to transactional exchange rate risk. Such risks are due to sales or purchases made by theoperating entity in currencies other than its functional currency. The Group’s main production is within the territory of China,but its sales and purchase is settled in USD. However, there still were foreign exchange risks in the foreign currency assetsand liabilities and future foreign currency transactions that have been recognized by the Group (foreign currency assets andliabilities and foreign currency transactions are priced mainly in USD). The nance department of the Headquarters of theGroup is responsible for supervising the scale of the Group's foreign currency transactions and foreign currency assets andliabilities to minimize the foreign exchange risks.The following table is a sensitivity analysis of exchange rate risk, reecting the assumption that all other variables willremain the same, when the USD exchange rate changes reasonably and possibly, it will a?ect the net prot or loss (due tothe change in fair value of monetary assets and liabilities) and other comprehensive income, net of tax (due to the change infair value of forward foreign exchange contract).2020
USD exchange rateIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensiveincome Increase / (Decrease)
Total shareholders' equityIncrease / (Decrease)RMB appreciationagainst USD
1%15,995,421-15,995,421RMB depreciationagainst USD
(1%)(15,995,421)-(15,995,421)2019
USD exchange rateIncrease / (Decrease)
Net prot or lossIncrease / (Decrease)
Net of tax of other comprehensiveincome Increase / (Decrease)
Total shareholders' equityIncrease / (Decrease)RMB appreciationagainst USD
1%40,098,106-40,098,106RMB depreciationagainst USD
(1%)(40,098,106)-(40,098,106)Price risk of equity instrument investmentThe price risk of equity instrument investment refers to the risk that the fair value of equity securities decreases dueto the change of stock index level and individual securities value. As at December 31, 2020, the Group was exposed tothe price risk of equity instrument investment arising from the individual equity instrument investment classied as equityinstrument investment measured at fair value through the current profit or loss. The listed equity instrument investmentheld by the Group is listed on the stock exchanges of Shanghai, Shenzhen and Hong Kong, and measured at the marketquotation on the balance sheet date.The market stock indexes of the following stock exchanges at the closing of the trading day closest to the balance sheetdate, as well as their respective highest and lowest closing points in the year:
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2020At the end of 2020Highest / lowest in 2020At the end of 2019Highest / lowest in 2019Shanghai - A-share index3,6493,912/2,7743,1963,426/2,580Shenzhen - A-share index2,4382,442/1,6831,8021,865/1,303Hong Kong - Hang Seng Index27,23129,175/21,13928,19030,157/25,064
The following table shows the sensitivity of the Group's net prot or loss to the change of 1% of the fair value of equityinstrument investment (based on the book value on the balance sheet date) under the assumption that all other variablesremain unchanged.2020
Book valueof equityinstrumentinvestment
Increase /(decrease)in net protor loss
Increase / (decrease)in net of tax of othercomprehensiveincome
Increase /(decrease) in total
shareholders'equityEquity instrument investmentShanghai - equity instrument investment measured at fairvalue through the current prot or loss
679,011,6655,771,599-5,771,599Shenzhen - equity instrument investment measured at fairvalue through the current prot or loss
229,296,7741,949,023-1,949,023Hong Kong - equity instrument investment measured at fairvalue through the current prot or loss
684,876,9335,718,722-5,718,722Investment in unlisted equity instruments measured at fairvalue- Equity instrument investment measured at fair value throughthe current prot or loss
330,094,0572,805,799 -2,805,799- Equity instrument investment measured at fair value throughthe other comprehensive income
61,505,751-522,799522,799
2019
Book value
of equityinstrumentinvestment
Increase /(decrease)in net protor loss
Increase / (decrease)in net of tax of othercomprehensiveincome
Increase /(decrease) in totalshareholders'equityEquity instrument investmentShanghai - equity instrument investment measured at fair valuethrough the current prot or loss
585,555,5554,977,222-4,977,222Shenzhen - equity instrument investment measured at fairvalue through the current prot or loss
133,330,6761,132,191-1,132,191Hong Kong - equity instrument investment measured at fairvalue through the current prot or loss
990,232,3098,268,440-8,268,440Investment in unlisted equity instruments measured at fairvalue- Equity instrument investment measured at fair value throughthe other comprehensive income
61,981,268-526,841526,8414 Capital managementThe Group’s objectives of capital management policy are to safeguard the Group’s ability to continue as a going concernin order to provide returns for shareholders and benets for other stakeholders and to maintain an optimal capital structure toreduce the cost of capital.In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders,return capital to shareholders, issue new shares or sell assets to reduce debt.The total capital of the Group is the shareholders' equity as listed in the consolidated balance sheet. The Group is notsubject to external mandatory capital requirements and makes use of the asset-liability ratio to monitor capital. This ratiois calculated by the net debt divided by total capital. The net debt is the total borrowing (including Short-term borrowingslisted in the consolidated balance sheet, other non-current liabilities due within one-year, Long-term borrowings, otherpayables and interest-bearing liabilities in long-term payables) minus cash and cash equivalents. The total capital is the totalshareholders’ equity plus net debt.
168168
XI. Fair value disclosure1 Ending fair value of assets and liabilities measured at fair value
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Ending fair valueFair valuemeasurementat level 1
Fair valuemeasurementat level 2
Fair valuemeasurement
at level 3
TotalI. Continuous fair value measurement (I) Held-for-trading nancial assets1,593,185,3728,438,2781,601,623,650
1. Financial assets measured at fair value through the current prot
or loss
1,593,185,3728,438,2781,601,623,650
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative nancial assets8,438,2788,438,278
(4) Equity of listed companies1,593,185,3721,593,185,372
2. Financial assets designated to be measured at fair value through
the current prot or loss
(1) Debt instrument investment
(2) Equity instrument investments
(II) Other debt investment(III) Investment in other equity instruments61,505,75161,505,751(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 nancing362,006,319-362,006,319(VII) Other non-current nancial assets330,094,057330,094,057Total assets measured with continuous fair value continuously1,593,185,372362,006,319400,038,0862,355,229,777(VI) Held-for-trading nancial liabilities
1. Financial liabilities measured at fair value through current prot or
lossIncluding: Trading bonds issued
Derivative nancial liabilitiesOthers
2. Financial liabilities designated to be measured at fair value through
the current prot or lossForward foreign exchange contract458,882458,882Total liabilities measured with continuous fair value continuously458,882458,882II. Non-continuous fair value measurement
As at December 31, 2020 and December 31, 2019, the liability ratio of the Group is listed as follows:
20202019Debt ratio67%67%
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2020
Item
Ending fair valueFair valuemeasurementat level 1
Fair valuemeasurementat level 2
Fair valuemeasurementat level 3
Total (I) Assets held for saleTotal assets not continuously measured at fair valueTotal 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 continuousand 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. Therewas no conversion among levels in this year.
Where there is an active market traded for a nancial instrument, the Group shall adopt the quoted price in the activemarket to determine the fair value thereof; where there is no active market traded for a nancial instrument, the Group shalladopt value appraisal techniques to determine its fair value. The valuation models used are discounted cash ow model andmarket comparable company model. The input value of valuation techniques mainly includes the weighted average cost ofcapital, liquidity discount, price to book ratio of comparable companies.
Relevant information about the measurement of fair value at level 2 is as follows:
2020Fair value
Valuation technique
Observable input valueNameScopeReceivables nancing362,006,319Discounted cash ow modelSimilar open market lending rate4.4%Held-for-trading nancial liabilities- ZAR Forward foreign exchangecontract
458,882Discounted cash ow modelZAR-USD forward foreign exchange15.0022 to 15.20134 Valuation techniques and the qualitative and quantitative information of important parameters for continuousand non-continuous fair value measurement items at level 3
√Applicable □Not applicable
The signicant and unobservable input value of fair value measurement at Level 3 is as follows:
2020Fair value
Valuation technique
Unobservable input valueNameWeighted averageHeld-for-trading nancial assets –equity instrument investments
8,438,278Discounted cash ow modelWeighted average capital cost11%Investment in other equityinstruments
61,505,751
Market comparablecompany model
Liquidity discount29%-37%P/B ratio of comparable company1.3-2.18Other non-current nancial assets330,094,057
Market comparablecompany model
Liquidity discount29%P/B ratio of comparable company1.435 For continuous fair value measurement items at level 3, the adjustment information between beginning andending book value and the sensitivity analysis of unobservable parameters
□Applicable √Not applicable
6 For continuous fair value measurement items, if there is conversion between different levels in the currentperiod, the reasons for conversion and the policies for determining the conversion time
□Applicable √Not applicable
170170
7 Changes in valuation technology in the current period and reasons for changes
□Applicable √Not applicable
8 Fair values of nancial assets and nancial liabilities not measured at fair value
□Applicable √Not applicable
9 Others
√Applicable □Not applicable
Assets and liabilities disclosed at fair valueThe management has evaluated the monetary funds, accounts receivables, notes payable and accounts payable, andthe fair value is equal to the book value due to short remaining term.The long-term receivables of the Group are the receivables with oating rate, and the di?erence between the book valueand fair value is small.As for the long-term borrowings and long-term payables, the book value shall be determined by the future cash ow speciedin the contract after discounting according to the interest rate which has comparable credit rating on the market and providesalmost the same cash ow under the same conditions, and the di?erence between the book value and such fair value is small.Adjustment and level conversion of fair value measurementIn this year, there was no transfer of fair value measurement of nancial assets and nancial liabilities between level 1and level 2, and there was no transfer into or out of the level 3.XII Related parties and related party transactions
1 Parent company
√Applicable □Not applicable
Unit: 10,000 Yuan Currency: CNYParent company
Registrationplace
Business nature
Registeredcapital
Shareholding ratio inthe Company (%)
Voting ratio in theCompany (%)China CommunicationsConstruction Group Co., Ltd.
Beijing City
Port project contracting andrelated business
585,54246.22946.229Description of the parent company of the CompanyNoneThe nal controlling party of the Company is the China Communications Construction Group Co., Ltd.Other description:
None2 SubsidiariesFor 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 formedbalance in the previous period are as follows
□Applicable √Not applicable
Other description
□Applicable √Not applicable
4 Other related parties
√Applicable □Not applicable
Name of other related partiesRelationship with related partyChina Communications Construction Company Ltd.Controlled by the same parent companyChina Harbour Engineering Co., Ltd.Controlled by the same parent companyCCCC Finance Company Ltd.Controlled by the same parent company
171171
2020Name of other related partiesRelationship with related partyCCCC Second Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC Second Highway Consultants Co., Ltd.Controlled by the same parent companyCCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Second Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC Third Highway Engineering Co. Ltd.Controlled by the same parent companyCCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Third Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC Fourth Harbor Engineering Co., LtdControlled by the same parent companyCCCC Fourth Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC First Highway Consultants Co., Ltd.Controlled by the same parent companyCCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC-FHEC Urban Tra?c Engineering Co., Ltd.Controlled by the same parent companyCCCC First Harbor Consultants Co., Ltd.Controlled by the same parent companyCCCC - SHEC Second Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Third Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyCCCC - SHEC Railway Construction Co., LtdControlled by the same parent companyCCCC - SHEC Electrical Engineering Co., Ltd.Controlled by the same parent companyCCCC SHEC Chengdu Urban Construction Engineering Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.3 Co. of The Second Navigational Engineering Bureau, CCCCControlled by the same parent companyNo.4 Engineering Co., Ltd. of CCCC Second Harbor Engineering Co., Ltd.Controlled by the same parent companyThe First Construction Company of CCCC Second Harbor Engineering Co., LtdControlled by the same parent companyCCCC-SHEC Construction Engineering Co., LtdControlled by the same parent companyZhen Hwa Harbour Construction Co., Ltd.Controlled by the same parent companyBeijing Rate Electronic Technology Developing Co., Ltd.Controlled by the same parent companyCCCC Guidu Highway Construction Co., Ltd.Controlled by the same parent companyRoad & Bridge International Co., Ltd.Controlled by the same parent companyShanghai Waterway Logistics Co., LtdControlled by the same parent companyShanghai Jiangtian Industrial Co., Ltd.Controlled by the same parent companyShanghai Communications Construction Contracting Co., Ltd.Controlled by the same parent companyShanghai Interlink Road & Bridge Engineering Co., Ltd.Controlled by the same parent companyShanghai Zhensha Longfu Machinery Co., Ltd.Controlled by the same parent companyShanghai China Communications Water Transportation Design & Research Co., Ltd.Controlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyWuhan Hangke Logistics Company LimitedControlled by the same parent companyHong Kong Marine Construction LimitedControlled by the same parent companyZhenhua Engineering Co., Ltd.Controlled by the same parent companyXiangtan CCCC Infrastructure Investment and Construction Co., Ltd.Controlled by the same parent companyYueyang Chenglingji New Port Co., Ltd.Controlled by the same parent companyChina Communications Materials & Equipment Co., Ltd.Controlled by the same parent companyChina Road & Bridge CorporationControlled by the same parent companyChina Highway Engineering Consultants CorporationControlled by the same parent companyChuwa Risheng (Beijing) International Trade Co., LtdControlled by the same parent companyChuwa Bussan Co., Ltd.Controlled by the same parent companyCCCC (Xiamen) Information Co., LtdControlled by the same parent company
172172
Name of other related partiesRelationship with related partyCCCC (Zhoushan) Dredging Co., Ltd.Controlled by the same parent companyCCCC North Industrial Co., Ltd.Controlled by the same parent companyCCCC Highway Consultants Co., Ltd.Controlled by the same parent companyCCCC Highway Bridges National Engineering Research Centre Co., Ltd.Controlled by the same parent companyCCCC Guangzhou Dredging Co., Ltd.Controlled by the same parent companyCCCC International (Hong Kong) Holdings LimitedControlled by the same parent companyCCCC International Shipping Co., LtdControlled by the same parent companyCCCC Marine Engineering & Technology Research Center Co., Ltd.Controlled by the same parent companyCCCC East China Investment Co., Ltd.Controlled by the same parent companyCCCC Electrical and Mechanical Engineering Co., Ltd.Controlled by the same parent companyCCCC Infrastructure Maintenance Group Co., Ltd.Controlled by the same parent companyRoad & Bridge East China Engineering Co., Ltd.Controlled by the same parent companyRoad & Bridge South China Engineering Co., LtdControlled by the same parent companyRoad & Bridge International Co., Ltd.Controlled by the same parent companyCCCC Nanjing Tra?c Engineering Management Co., Ltd.Controlled by the same parent companyCCCC Financial Leasing (Guangzhou) Co., LtdControlled by the same parent companyCCCC Financial Leasing Co., LtdControlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyConstruction Materials Co., Ltd, CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Shanghai Harbor Engineering Design & Research Institute Co., Ltd.Controlled by the same parent companyCCCC Shanghai Dredging Co., Ltd.Controlled by the same parent companyCCCC Shanghai Channel Equipment Industry Co., Ltd.Controlled by the same parent companyCCCC Shanghai Equipment Engineering Co., Ltd.Controlled by the same parent companyCCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.Controlled by the same parent companyCCCC National Engineering Research Center of Dredging Technology and Equipment Co.,Ltd.
Controlled by the same parent companyCCCC Water Transportation Planning and Design Institute Co., Ltd.Controlled by the same parent companyNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.Controlled by the same parent companyThe Third Engineering Company of CCCC Fourth Harbor Engineering Co., LtdControlled by the same parent companyCCCC Tunnel Engineering Company LimitedControlled by the same parent companyHainan Industry Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyBinhai Environmental Protection Dredging Co., Ltd. of CCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyCCCC Tianhe Mechanical Equipment Manufacturing Co., LtdControlled by the same parent companyCCCC Tianhe Xi’an Equipment Manufacturing Co., Ltd.Controlled by the same parent companyCCCC Tianjin Port Waterway Prospection & Design Research Institute Co., Ltd.Controlled by the same parent companyCCCC Tianjin Industry and Trade Co., Ltd.Controlled by the same parent companyCCCC Tianjin Dredging Co., Ltd.Controlled by the same parent companyCCCC WuHan Harbour Engineering Design and Research Co., Ltd.Controlled by the same parent companyCCCC Xi’an Road Construction Machinery Co., Ltd.Controlled by the same parent companyCCCC Xingyu Technology Co., LtdControlled by the same parent companyCCCC Xiongan Financial Leasing Co., LtdControlled by the same parent companyCCCC Yancheng Construction Development Co., Ltd.Controlled by the same parent companyNo.8 Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyNo. 6 Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.Controlled by the same parent companyNo. Three Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.Controlled by the same parent company
173173
2020
Name of other related partiesRelationship with related partyCCCC First Highway Fifth Engineering Co., Ltd.Controlled by the same parent companyCCCC First Highway Electrication Engineering Co., LtdControlled by the same parent companyHaiwei Engineering Construction Co., Ltd., of FHEC of CCCCControlled by the same parent companyChongqing Yongjiang Expressway Investment and Construction Co., Ltd of FHEC ofCCCC
Controlled by the same parent companyInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co. Ltd.Controlled by the same parent companyNo.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.Controlled by the same parent companyCCCC Leasing Jiahua No.2 Co. Ltd.Controlled by the same parent companyCCCC Leasing Jiahua No.1 Co., Ltd.Controlled by the same parent companyCNPC & CCCC Petroleum Sales Co., Ltd.Controlled by the same parent companyHainan CCCC Fourth Harbor Construction Co., Ltd.Controlled by the same parent companyElectrication Co., Ltd. of CCCC Tunnel Engineering Company LimitedControlled by the same parent companyCTTIC Shanghai Co., Ltd.Controlled by the same parent companyFriede & Goldman, Llc.Controlled by the same parent companyOther descriptionNone
5 Related party transactions
(1) Purchase and sales of goods, and rendering and receipt of labor services
Purchase of goods/receipt of labor services
√Applicable □Not applicable
Unit: Yuan Currency: CNYRelated partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodNo.2 Engineering Co., Ltd. of CCCC Third Harbor EngineeringCo., Ltd.
Receipt of labor services691,422,0661,559,123,096CCCC Fourth Highway Engineering Co., Ltd.Receipt of labor services306,195,275326,099,884CCCC Second Harbor Engineering Co., Ltd.Receipt of labor services301,152,97844,626,778CCCC Third Harbor Engineering Co., Ltd.Receipt of labor services204,828,721138,044,572CCCC First Highway Engineering Co., Ltd.Receipt of labor services201,690,439-CCCC Tianjin Dredging Co., Ltd.Receipt of labor services100,525,54530,385,226CCCC Third Highway Engineering Co. Ltd.Receipt of labor services60,479,325102,954,724ZPMC Southeast Asia Pte. LtdReceipt of labor services59,340,65231,842,242Shanghai Communications Construction Contracting Co., Ltd.Receipt of labor services36,281,8283,843,677No. 2 Engineering Co., Ltd. of CCCC Fourth HighwayEngineering Co., Ltd.
Receipt of labor services32,430,368-CCCC Water Transportation Planning and Design InstituteCo., Ltd.
Receipt of labor services26,070,99044,003,688Road & Bridge East China Engineering Co., Ltd.Receipt of labor services23,620,159-CCCC Second Highway Engineering Co., Ltd.Receipt of labor services21,674,421-CCCC First Highway Fifth Engineering Co., Ltd.Receipt of labor services17,768,785-CCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.Receipt of labor services14,309,194-China Road & Bridge CorporationReceipt of labor services10,988,7489,772,546CCCC Second Highway Consultants Co., Ltd.Receipt of labor services5,420,28812,744,480China Communications Construction Company Ltd.Receipt of labor services4,388,5496,970,318ZPMC Mediterranean Liman Makinalari Ticaret Anonim SirketiReceipt of labor services3,690,4809,022,814CCCC Third Harbor Consultants Co., Ltd.Receipt of labor services3,577,982400,000CCCC Tianhe Mechanical Equipment Manufacturing Co., LtdReceipt of labor services1,834,862-
174174
Related partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodShanghai China Communications Water TransportationDesign & Research Co., Ltd.
Receipt of labor services1,748,8531,008,394CCCC First Harbor Consultants Co., Ltd.Receipt of labor services1,293,585128,440CCCC Xingyu Technology Co., LtdReceipt of labor services1,291,516-Shanghai Waterway Logistics Co., LtdReceipt of labor services1,009,174Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co. Ltd.
Receipt of labor services908,2577,202,999CCCC Highway Consultants Co., Ltd.Receipt of labor services258,180-CCCC Marine Engineering & Technology Research CenterCo., Ltd.
Receipt of labor services207,2031,599,377CCCC WuHan Harbour Engineering Design and ResearchCo., Ltd.
Receipt of labor services68,807-CCCC Shanghai Harbor Engineering Design & ResearchInstitute Co., Ltd.
Receipt of labor services55,046-No.2 Engineering Co., Ltd. of CCCC Fourth HarborEngineering Co., Ltd.
Receipt of labor services-166,442,076Xing An Ji Engineering Co., Ltd. of CCCC Third HarborEngineering Co., Ltd.
Receipt of labor services-126,919,874No.3 Co. of The Second Navigational Engineering Bureau,CCCC
Receipt of labor services-37,974,356CCCC - SHEC Second Highway Engineering Co., Ltd.Receipt of labor services-32,728,018CCCC Shanghai Dredging Co., Ltd.Receipt of labor services-27,320,344China Communications Materials & Equipment Co., Ltd.Receipt of labor services-17,482,045CCCC Shanghai Equipment Engineering Co., Ltd.Receipt of labor services-4,533,910CCCC Highway Bridges National Engineering ResearchCentre Co., Ltd.
Receipt of labor services-2,449,541CCCC First Highway Consultants Co., Ltd.Receipt of labor services-1,153,073CCCC (Zhoushan) Dredging Co., Ltd.Receipt of labor services-350,748No. Three Engineering Co., Ltd. of CCCC First HighwayEngineering Co., Ltd.
Receipt of labor services-343,394CCCC Fourth Harbor Engineering Co., LtdReceipt of labor services-86,849CCCC Shanghai Equipment Engineering Co., Ltd.Purchase of goods645,334,16051,424,063ZPMC Changzhou Coatings Co., Ltd.Purchase of goods83,224,897145,138,516CCCC Tianjin Industry and Trade Co., Ltd.Purchase of goods66,687,6721,669,824Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co. Ltd.
Purchase of goods61,964,860-Shanghai Jiangtian Industrial Co., Ltd.Purchase of goods10,044,7359,429,667Chongqing Yongjiang Expressway Investment andConstruction Co., Ltd of FHEC of CCCC
Purchase of goods9,557,213-CCCC Shanghai Channel Equipment Industry Co., Ltd.Purchase of goods3,466,483320,806China Communications Construction Company Ltd.Purchase of goods2,254,606-CCCC National Engineering Research Center of DredgingTechnology and Equipment Co., Ltd.
Purchase of goods2,151,725-CNPC & CCCC Petroleum Sales Co., Ltd.Purchase of goods2,047,7521,475,121CCCC (Xiamen) Information Co., LtdPurchase of goods20,971-Chuwa Bussan Co., Ltd.Purchase of goods-36,202,211CCCC Tianjin Port Waterway Prospection & Design ResearchInstitute Co., Ltd.
Purchase of goods-9,951,061CCCC Tianjin Dredging Co., Ltd.Purchase of goods-5,475,264
175175
2020Related partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodCCCC North Industrial Co., Ltd.Purchase of goods-3,841,523CCCC Marine Engineering & Technology Research CenterCo., Ltd.
Purchase of goods-2,451,616China Communications Materials & Equipment Co., Ltd.Purchase of goods-380,531CCCC Third Harbor Consultants Co., Ltd.Purchase of goods-353,982China Road & Bridge CorporationPurchase of goods-64,214Sales of goods/rendering of labor services
√Applicable □Not applicable
Unit: Yuan Currency: CNYRelated partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodChina Road & Bridge CorporationSales of goods/other inows897,728,4421,678,140,641CCCC Third Harbor Engineering Co., Ltd.Sales of goods/other inows424,401,835113,127,045CCCC Second Harbor Engineering Co., Ltd.Sales of goods/other inows283,456,305337,523,772Jiangsu Longyuan Zhenhua Marine Engineering Co., LtdSales of goods/other inows231,829,678248,918,845Road & Bridge International Co., Ltd.Sales of goods/other inows229,793,50695,683,938CCCC Third Highway Engineering Co. Ltd.Sales of goods/other inows173,821,69630,678,385CCCC Second Highway Engineering Co., Ltd.Sales of goods/other inows138,705,156230,557,910CCCC Electrical and Mechanical Engineering Co., Ltd.Sales of goods/other inows88,938,053124,928,355China Communications Construction Company Ltd.Sales of goods/other inows78,205,835231,935,329CCCC First Harbor Consultants Co., Ltd.Sales of goods/other inows69,444,739-CCCC Tianjin Industry and Trade Co., Ltd.Sales of goods/other inows50,952,323-ZPMC-OTL MARINE CONTRACTOR LIMITEDSales of goods/other inows38,016,390-ZPMC Southeast Asia Pte. LtdSales of goods/other inows37,632,123-The First Construction Company of CCCC Second HarborEngineering Co., Ltd
Sales of goods/other inows36,724,138-CCCC - SHEC Third Highway Engineering Co., Ltd.Sales of goods/other inows34,008,54726,395,514Installation Engineering Co., Ltd. of CCCC First HarborEngineering Co. Ltd.
Sales of goods/other inows22,123,89428,657,101CCCC First Harbor Engineering Co., Ltd.Sales of goods/other inows20,139,6206,829,633CCCC First Highway Engineering Co., Ltd.Sales of goods/other inows14,921,008126,158,585China Harbour Engineering Co., Ltd.Sales of goods/other inows13,927,29545,102,497CCCC Tunnel Engineering Company LimitedSales of goods/other inows12,218,3626,135,411CCCC Yancheng Construction Development Co., Ltd.Sales of goods/other inows11,855,952-CCCC Shanghai Equipment Engineering Co., Ltd.Sales of goods/other inows8,761,075-The Third Engineering Company of CCCC Fourth HarborEngineering Co., Ltd
Sales of goods/other inows6,559,140-CCCC First Highway Electrication Engineering Co., LtdSales of goods/other inows6,129,210-No.3 Co. of The Second Navigational Engineering Bureau,CCCC
Sales of goods/other inows5,053,0603,750,000CCCC - SHEC Electrical Engineering Co., Ltd.Sales of goods/other inows4,731,690-CCCC Tianhe Mechanical Equipment Manufacturing Co., LtdSales of goods/other inows4,698,839-Beijing Rate Electronic Technology Developing Co., Ltd.Sales of goods/other inows3,550,889-CCCC Xi’an Road Construction Machinery Co., Ltd.Sales of goods/other inows1,327,434-CCCC International Shipping Co., LtdSales of goods/other inows1,044,785-Road & Bridge International Co., Ltd.Sales of goods/other inows78,509-CCCC Financial Leasing Co., LtdSales of goods/other inows-667,073,687CCCC Tianjin Dredging Co., Ltd.Sales of goods/other inows-26,539,740CCCC Marine Engineering & Technology Research Center Co., Ltd.Sales of goods/other inows-8,345,339
176176
Related partyContent of transaction
Amount incurred inthe current period
Amount incurred inthe previous periodHong Kong Marine Construction LimitedSales of goods/other inows-7,992,047CCCC Fourth Highway Engineering Co., Ltd.Sales of goods/other inows-7,874,250No.3 Engineering Co., Ltd. of CCCC Third HarborEngineering Co., Ltd.
Sales of goods/other inows-7,230,066No.4 Engineering Co., Ltd. of CCCC Second HarborEngineering Co., Ltd.
Sales of goods/other inows-6,037,290Shanghai Communications Construction Contracting Co., Ltd.Sales of goods/other inows-12,236Total2,950,779,5284,065,627,616
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: 10,000 Yuan Currency: CNYItemAmount incurred in the current periodAmount incurred in the previous periodRemuneration of key management personnel1,2061,161 (8) Other related party transactions
√Applicable □Not applicable
1) Paying dividends to related parties
20202019CCCC International (Hong Kong) Holdings Limited45,837,792-China Communications Construction Company Ltd.42,777,10242,777,102CCCG33,161,16933,161,169CCCC Second Harbor Engineering Co., Ltd.9,682,385-CCCC Highway Consultants Co., Ltd.2,420,596-CCCC East China Investment Co., Ltd.2,420,596-
177177
202020202019Zhenhua Engineering Co., Ltd.-44,921,036Zhen Hwa Harbour Construction Co., Ltd.-916,756
136,299,640121,776,063
2) Deposits in (withdrawal of deposits from) related parties
20202019CCCC Finance Company Ltd.(360,641,890)433,312,793China Communications Construction Company Ltd.-(3,733,158)
(360,641,890)429,579,635
3) Borrowings from related parties
20202019CCCC Finance Company Ltd.2,500,000,00050,000,000CCCC Financial Leasing Co., Ltd413,000,000413,361,212CCCC Leasing Jiahua No.1 Co., Ltd.338,980,000-CCCC Xiongan Financial Leasing Co., Ltd70,000,000-CCCC Financial Leasing (Guangzhou) Co., Ltd51,000,000-
3,372,980,000463,361,212
4) Interest collected from related parties
20202019CCCC Finance Company Ltd.297,806465,261China Communications Construction Company Ltd.-2,101,285
297,8062,566,546
5) Interest paid to related parties
20202019CCCC Finance Company Ltd.13,871,66718,245,229CCCC Financial Leasing Co., Ltd13,795,11026,460,645CCCC Leasing Jiahua No.1 Co., Ltd.8,537,82546,946,944CCCC Leasing Jiahua No.2 Co. Ltd.8,537,82514,691,723CCCC Xiongan Financial Leasing Co., Ltd834,444-CCCC Financial Leasing (Guangzhou) Co., Ltd482,639-
46,059,510106,344,541
6 Accounts receivable and payable by related parties (1) Receivables
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemRelated parties
December 31, 2020December 31, 2019Bookbalance
Provision forbad debt
Bookbalance
Provision forbad debtAccounts receivableCCCC Third Harbor Engineering Co., Ltd.175,013,189-48,017,218-Accounts receivable
Jiangsu Longyuan Zhenhua Marine EngineeringCo., Ltd
162,823,292-204,812,244-Accounts receivableCCCC First Harbor Engineering Co., Ltd.121,988,778-130,700,172-Accounts receivableCCCC Second Harbor Engineering Co., Ltd.110,819,885-112,525,256-
178178
ItemRelated parties
December 31, 2020December 31, 2019Bookbalance
Provision forbad debt
Bookbalance
Provision for
bad debtAccounts receivable
No.1 Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
59,832,510-59,832,510-Accounts receivableCCCC Second Highway Engineering Co., Ltd.56,896,049-104,419,393-Accounts receivableChina Communications Construction Company Ltd.41,920,389-44,091,360-Accounts receivableCCCC Electrical and Mechanical Engineering Co., Ltd.29,971,240--Accounts receivableCCCC - SHEC Fourth Highway Engineering Co., Ltd.29,418,356--Accounts receivableCCCC First Harbor Consultants Co., Ltd.28,927,082-13,290,419-Accounts receivableChina Harbour Engineering Co., Ltd.24,508,151-7,338,237-Accounts receivableZPMC-OTL MARINE CONTRACTOR LIMITED23,195,911-33,140,688-Accounts receivableRoad & Bridge International Co., Ltd.21,011,58055,526,242-Accounts receivable
The First Construction Company of CCCC SecondHarbor Engineering Co., Ltd
17,956,828-21,712,500-Accounts receivableCCCC Tianjin Industry and Trade Co., Ltd.17,469,938-5,058,290-Accounts receivable
ZPMC Mediterranean Liman Makinalari TicaretAnonim Sirketi
15,791,610-19,559,532-Accounts receivableZPMC Southeast Asia Pte. Ltd15,550,746-3,097,777-Accounts receivableFriede & Goldman, Llc.15,517,772-17,890,465-Accounts receivable
Xiangtan CCCC Infrastructure Investment andConstruction Co., Ltd.
15,052,800-15,052,800-Accounts receivableCCCC Third Harbor Consultants Co., Ltd.13,766,470-150,000-Accounts receivable
Binhai Environmental Protection Dredging Co., Ltd.of CCCC Tianjin Dredging Co., Ltd.
13,550,085--Accounts receivableZhenhua Marine Energy (HK) Co., Ltd.11,235,878-12,013,016-Accounts receivableCCCC Fourth Harbor Engineering Co., Ltd10,500,000-12,750,000-Accounts receivableChuwa Risheng (Beijing) International Trade Co., Ltd10,498,227--Accounts receivableCCCC International Shipping Co., Ltd10,116,795--Accounts receivableCCCC Fourth Harbor Consultants Co., Ltd.7,398,000-14,796,000-Accounts receivable
No. 6 Engineering Co., Ltd. of CCCC First HighwayEngineering Co., Ltd.
6,098,300-6,098,300-Accounts receivableRoad & Bridge International Co., Ltd.4,343,950-6,953,532-Accounts receivableCCCC - SHEC Second Highway Engineering Co., Ltd.3,225,975-8,125,713-Accounts receivableShanghai Interlink Road&Bridge Engineering Co., Ltd.1,900,000---Accounts receivable
CCCC Tianhe Mechanical EquipmentManufacturing Co., Ltd
1,798,872--Accounts receivable
CCCC First Highway Electrication EngineeringCo., Ltd
1,714,091---Accounts receivableCCCC - SHEC Third Highway Engineering Co., Ltd.1,015,313-1,015,313-Accounts receivableCCCC - SHEC Railway Construction Co., Ltd727,743---Accounts receivable
No.2 Engineering Co., Ltd. of CCCC SecondHarbor Engineering Co., Ltd.
499,367-6,199,367-Accounts receivable
Installation Engineering Co., Ltd. of CCCC FirstHarbor Engineering Co. Ltd.
386,912-1,311,259-Accounts receivableCCCC Xi’an Road Construction Machinery Co., Ltd.350,000---Accounts receivableShanghai Jiangtian Industrial Co., Ltd.340,862---Accounts receivableBeijing Rate Electronic Technology Developing Co., Ltd.303,954---Accounts receivableCCCC Shanghai Dredging Co., Ltd.286,500---Accounts receivableRoad & Bridge South China Engineering Co., Ltd232,040-13,178,839-Accounts receivableCCCC Third Highway Engineering Co. Ltd.156,370-11,363,591-
179179
2020
ItemRelated parties
December 31, 2020December 31, 2019Bookbalance
Provision for
bad debt
Bookbalance
Provision forbad debtAccounts receivable
No.3 Co. of The Second Navigational EngineeringBureau, CCCC
142,296-23,938,106-Accounts receivableCCCC Financial Leasing Co., Ltd117,643-226,485,073-Accounts receivable
Hainan Industry Co., Ltd. of CCCC Tianjin DredgingCo., Ltd.
107,834-2,156,675-Accounts receivableCCCC Guangzhou Dredging Co., Ltd.69,200-69,200-Accounts receivableCCCC Guidu Highway Construction Co., Ltd.63,951-79,332-Accounts receivableYueyang Chenglingji New Port Co., Ltd.53,121-48,680-Accounts receivableCCCC Tunnel Engineering Company Limited--92,085,891-Accounts receivableCCCC First Highway Engineering Co., Ltd.--43,230,857-Accounts receivableChina Road & Bridge Corporation--18,076,000-Accounts receivable
CCCC Marine Engineering & Technology ResearchCenter Co., Ltd.
--12,822,927-Accounts receivableHainan CCCC Fourth Harbor Construction Co., Ltd.--6,200,000-Accounts receivableCCCC Shanghai Equipment Engineering Co., Ltd.--6,000,000-Accounts receivableCCCC-FHEC Urban Tra?c Engineering Co., Ltd.--4,303,584-Accounts receivableCCCC Fourth Highway Engineering Co., Ltd.--4,000,000-Accounts receivable
No. Three Engineering Co., Ltd. of CCCC FirstHighway Engineering Co., Ltd.
--1,126,432-Accounts receivableCCCC - SHEC Electrical Engineering Co., Ltd.--770,321-Accounts receivable
Xing An Ji Engineering Co., Ltd. of CCCC ThirdHarbor Engineering Co., Ltd.
--331,860-Accounts receivable
Electrication Co., Ltd. of CCCC TunnelEngineering Company Limited
--172,787-Accounts receivable
No.2 Engineering Co., Ltd. of CCCC First HarborEngineering Co., Ltd.
--130,500-Receivablesnancing
Road & Bridge International Co., Ltd.21,000,000---Receivablesnancing
No.4 Engineering Co., Ltd. of CCCC Second
Harbor Engineering Co., Ltd.
10,000,000---Receivablesnancing
CCCC Second Highway Engineering Co., Ltd.8,000,000---Receivablesnancing
CCCC - SHEC Second Highway Engineering Co.,
Ltd.
8,000,000---Receivablesnancing
CCCC Tianhe Mechanical EquipmentManufacturing Co., Ltd
2,482,170---Receivablesnancing
CCCC Third Highway Engineering Co. Ltd.1,789,772--Receivablesnancing
CCCC Third Harbor Engineering Co., Ltd.1,000,000---Receivablesnancing
CCCC First Harbor Engineering Co., Ltd.500,000-4,000,000-Receivablesnancing
Road & Bridge East China Engineering Co., Ltd.--46,389,055-Receivablesnancing
CCCC Second Harbor Engineering Co., Ltd.--15,998,000-Receivablesnancing
CCCC Fourth Harbor Engineering Co., Ltd--8,045,547-Receivablesnancing
CCCC Electrical and Mechanical Engineering Co.,
Ltd.
--2,000,000-
180180
ItemRelated parties
December 31, 2020December 31, 2019Bookbalance
Provision forbad debt
Bookbalance
Provision forbad debtOther receivablesZhenhua Marine Energy (HK) Co., Ltd.164,124,678164,124,678164,124,678164,124,678Other receivablesZPMC Southeast Asia Pte. Ltd13,890,516-13,890,516-Other receivablesCCCC Yancheng Construction Development Co., Ltd.1,801,634-3,357,729-Other receivablesChina Communications Construction Company Ltd.518,781-47,845,576-Other receivablesChina Road & Bridge Corporation215,492---Other receivablesShanghai Jiangtian Industrial Co., Ltd.77,552-77,552-Other receivables
Haiwei Engineering Construction Co., Ltd., ofFHEC of CCCC
500---Other receivablesCCCC Financial Leasing Co., Ltd--20,000,000-Other receivablesCCCC Third Harbor Engineering Co., Ltd.--11,312,360-Other receivablesCCCC East China Investment Co., Ltd.--9,129,287-Other receivablesCCCC First Highway Fifth Engineering Co., Ltd.--8,897,903-Other receivablesCCCC Highway Consultants Co., Ltd.--4,629,287-Other receivables
No.3 Engineering Co., Ltd. of CCCC Third HarborEngineering Co., Ltd.
--3,975,000-Other receivablesCCCC Tianhe Xi’an Equipment Manufacturing Co., Ltd.--3,199,744-Other receivablesCCCC Second Highway Consultants Co., Ltd.--3,180,000-Other receivablesCCCC Third Highway Engineering Co. Ltd.--3,132,473-Other receivables
CCCC Marine Engineering & Technology ResearchCenter Co., Ltd.
--1,100,000-Other receivables
Installation Engineering Co., Ltd. of CCCC FirstHarbor Engineering Co. Ltd.
--600,000-Other receivablesCCCC Second Highway Engineering Co., Ltd.--200,000-Other receivablesCCCC Tunnel Engineering Company Limited--60,000-Other receivablesShanghai Zhensha Longfu Machinery Co., Ltd.--21,503-Other receivablesCCCC Second Harbor Engineering Co., Ltd.--10,000Other receivablesZPMC Changzhou Coatings Co., Ltd.--4,214Advances tosuppliers
Road & Bridge East China Engineering Co., Ltd.23,200,357--Advances tosuppliers
CCCC Shanghai Channel Equipment Industry Co.,
Ltd.
9,347,000---Advances tosuppliers
CCCC National Engineering Research Center ofDredging Technology and Equipment Co., Ltd.
8,264,000---Advances tosuppliers
CCCC Second Harbor Consultants Co., Ltd.731,601---Advances tosuppliers
CCCC Marine Engineering & Technology Research
Center Co., Ltd.
717,739-767,382-Advances tosuppliers
CCCC-SHEC Construction Engineering Co., Ltd2,000---Advances tosuppliers
ZPMC Southeast Asia Pte. Ltd--102,910-Contract assets
Jiangsu Longyuan Zhenhua Marine Engineering
Co., Ltd
29,068,026---Contract assetsCCCC Second Harbor Engineering Co., Ltd.21,898,621---Contract assetsCCCC Financial Leasing Co., Ltd14,770,690---Contract assetsCCCC Second Highway Engineering Co., Ltd.13,468,405---Contract assetsCCCC First Harbor Engineering Co., Ltd.12,588,620---Contract assetsRoad & Bridge International Co., Ltd.11,001,670---
181181
2020
ItemRelated parties
December 31, 2020December 31, 2019Bookbalance
Provision forbad debt
Bookbalance
Provision for
bad debtContract assetsCCCC - SHEC Second Highway Engineering Co., Ltd.10,821,112---Contract assetsCCCC Electrical and Mechanical Engineering Co., Ltd.10,050,000---Contract assetsCCCC Third Harbor Engineering Co., Ltd.9,530,062---Contract assetsCCCC First Harbor Consultants Co., Ltd.3,472,237---Contract assetsRoad & Bridge South China Engineering Co., Ltd3,064,962---Contract assetsCCCC Tianjin Industry and Trade Co., Ltd.1,528,570---Contract assetsCCCC Third Highway Engineering Co. Ltd.973,366---Long-termreceivables
CCCC Third Highway Engineering Co. Ltd.--797,873- (2) Payables
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemRelated parties
Ending book
balance
Beginning bookbalanceAccounts payableCCCC Second Harbor Engineering Co., Ltd.195,112,84327,440,101Accounts payableCCCC Third Harbor Engineering Co., Ltd.190,480,435154,812,290Accounts payableCCCC Fourth Highway Engineering Co., Ltd.154,901,564218,797,193Accounts payableCCCC First Highway Engineering Co., Ltd.82,536,11371,000,831Accounts payableCCCC Tianjin Dredging Co., Ltd.42,519,45378,800,497Accounts payableCCCC Shanghai Equipment Engineering Co., Ltd.42,317,79181,410,402Accounts payableShanghai Communications Construction Contracting Co., Ltd.25,385,55013,225,998Accounts payableInstallation Engineering Co., Ltd. of CCCC First Harbor Engineering Co. Ltd.24,122,51277,599Accounts payableCCCC Second Highway Consultants Co., Ltd.24,021,89025,578,962Accounts payableNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.23,818,22523,818,225Accounts payableCCCC Shanghai Channel Equipment Industry Co., Ltd.20,550,148-Accounts payableCCCC Second Highway Engineering Co., Ltd.16,875,119-Accounts payableZPMC Southeast Asia Pte. Ltd16,356,1627,070,528Accounts payableShanghai Jiangtian Industrial Co., Ltd.16,153,06313,898,988Accounts payableCCCC Worldcom (Chongqing) Heavy Industries Co., Ltd.15,597,022-Accounts payableZPMC Changzhou Coatings Co., Ltd.12,809,62915,695,707Accounts payable
CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
12,460,4285,205,113Accounts payableCCCC First Harbor Consultants Co., Ltd.9,925,3768,694,176Accounts payableNo.3 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.7,815,0187,815,018Accounts payableCCCC Shanghai Dredging Co., Ltd.7,571,15613,133,517Accounts payableNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.7,089,932-Accounts payableCCCC Tianjin Industry and Trade Co., Ltd.5,449,1463,589,681Accounts payableXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.4,327,3524,327,352Accounts payableJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd4,318,50010,136,028Accounts payableCCCC Marine Engineering & Technology Research Center Co., Ltd.3,325,74212,919,599Accounts payableFriede & Goldman, Llc.2,582,443-Accounts payableCCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd2,000,000-Accounts payableZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi1,615,788336,127Accounts payableCNPC & CCCC Petroleum Sales Co., Ltd.821,582391,056Accounts payableNo.2 Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.800,0001,600,000
182182
ItemRelated parties
Ending bookbalance
Beginning book
balanceAccounts payable
Shanghai China Communications Water Transportation Design & ResearchCo., Ltd.
740,000538,750Accounts payableCCCC First Harbor Engineering Co., Ltd.517,15015,754,549Accounts payable
Chongqing Yongjiang Expressway Investment and Construction Co., Ltd ofFHEC of CCCC
323,990-Accounts payableZhenhua (Singapore) Engineering Co., Ltd202,231-Accounts payableCCCC Third Highway Engineering Co. Ltd.176,73081,247,665Accounts payableCCCC (Xiamen) Information Co., Ltd101,136-Accounts payableCCCC Third Harbor Consultants Co., Ltd.100,000385,980Accounts payableCCCC WuHan Harbour Engineering Design and Research Co., Ltd.75,000700,000Accounts payableCCCC Shanghai Harbor Engineering Design & Research Institute Co., Ltd.60,000-Accounts payableNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.-125,024,626Accounts payableCCCC - SHEC Second Highway Engineering Co., Ltd.-30,900,741Accounts payableNo.3 Co. of The Second Navigational Engineering Bureau, CCCC-28,660,487Accounts payableCCCC - SHEC Third Highway Engineering Co., Ltd.-10,012,230Accounts payableCCCC Water Transportation Planning and Design Institute Co., Ltd.-6,547,891Accounts payableCCCC North Industrial Co., Ltd.-3,228,777Accounts payableCCCC Highway Bridges National Engineering Research Centre Co., Ltd.-2,670,000Accounts payableCCCC Tunnel Engineering Company Limited-1,477,308Accounts payableCCCC First Highway Consultants Co., Ltd.-574,560Accounts payableCCCC Electrical and Mechanical Engineering Co., Ltd.-501,000Accounts payableConstruction Materials Co., Ltd, CCCC Third Harbor Engineering Co., Ltd.-150,000Accounts payableChina Communications Materials & Equipment Co., Ltd.-30,000Accounts payableCTTIC Shanghai Co., Ltd.-120,000Notes payableCCCC Shanghai Equipment Engineering Co., Ltd.41,823,37342,912,082Notes payableCCCC Third Harbor Engineering Co., Ltd.15,918,000-Notes payableCCCC Tianjin Industry and Trade Co., Ltd.13,100,00066,393,976Notes payableZPMC Changzhou Coatings Co., Ltd.11,800,000-Notes payableCCCC Second Highway Engineering Co., Ltd.6,750,000-Notes payableRoad & Bridge East China Engineering Co., Ltd.3,000,000-Notes payable
Shanghai China Communications Water Transportation Design & ResearchCo., Ltd.
432,500-Notes payable
CCCC National Engineering Research Center of Dredging Technology andEquipment Co., Ltd.
-2,322,000Notes payableNo. Three Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.-374,300Notes payableCCCC (Zhoushan) Dredging Co., Ltd.-246,887Contract liabilitiesChina Road & Bridge Corporation741,065,613-Contract liabilitiesCCCC Electrical and Mechanical Engineering Co., Ltd.257,469,485-Contract liabilitiesXiangtan CCCC Infrastructure Investment and Construction Co., Ltd.106,194,690-Contract liabilitiesCCCC First Harbor Engineering Co., Ltd.52,141,593-Contract liabilitiesCCCC Financial Leasing Co., Ltd41,277,876-Contract liabilitiesNo.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.30,995,575-Contract liabilitiesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd16,871,857-Contract liabilitiesCCCC Third Highway Engineering Co. Ltd.13,387,655-Contract liabilitiesCCCC Second Harbor Engineering Co., Ltd.10,492,066-Contract liabilitiesCCCC Third Harbor Engineering Co., Ltd.4,488,752-Contract liabilitiesChina Harbour Engineering Co., Ltd.818,899-Contract liabilitiesZPMC Southeast Asia Pte. Ltd489,368-
183183
2020ItemRelated parties
Ending bookbalance
Beginning bookbalanceContract liabilitiesCranetech Global Sdn. Bhd.217,932-Contract liabilitiesXing An Ji Engineering Co., Ltd. of CCCC Third Harbor Engineering Co., Ltd.200,000-Contract liabilitiesNo.2 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd.188,679-Contract liabilitiesCCCC Shanghai Equipment Engineering Co., Ltd.100,000-Contract liabilitiesFriede & Goldman, Llc.11,830-Contract liabilitiesCCCC Second Highway Engineering Co., Ltd.3,706-Contract liabilitiesNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.71-Advances fromcustomers
CCCC Tunnel Engineering Company Limited-124,057,549Advances fromcustomers
Binhai Environmental Protection Dredging Co., Ltd. of CCCC Tianjin Dredging
Co., Ltd.
-53,943,315Advances fromcustomers
No.3 Co. of The Second Navigational Engineering Bureau, CCCC-13,651,291Advances fromcustomers
Wuhan Hangke Logistics Company Limited-5,801,268Advances fromcustomers
CCCC Second Harbor Engineering Co., Ltd.-4,005,140Advances fromcustomers
CCCC First Highway Engineering Co., Ltd.-4,000,000Advances fromcustomers
CCCC Yancheng Construction Development Co., Ltd.-1,340,000Advances fromcustomers
No.8 Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.-1,200,000Advances fromcustomers
CCCC SHEC Chengdu Urban Construction Engineering Co., Ltd.-942,101Advances fromcustomers
Road & Bridge International Co., Ltd.-832,675Advances fromcustomers
ZPMC-OTL MARINE CONTRACTOR LIMITED-749,244Advances fromcustomers
Friede & Goldman, Llc.-713,623Advances fromcustomers
CCCC Third Harbor Engineering Co., Ltd.-600,000Advances fromcustomers
No. Three Engineering Co., Ltd. of CCCC First Highway Engineering Co., Ltd.-600,000Advances fromcustomers
Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd-366,574Advances fromcustomers
China Harbour Engineering Co., Ltd.-346,318Advances fromcustomers
CranetechGlobalSdn.Bhd.-233,005Advances fromcustomers
CCCC Shanghai Equipment Engineering Co., Ltd.-100,000Advances fromcustomers
Transportation Construction Engineering Branch of CCCC Third Harbor
Engineering Co., Ltd.
-56,758Other payablesCCCC Third Harbor Engineering Co., Ltd.5,365,564804,250Other payablesCCCC Fourth Highway Engineering Co., Ltd.5,039,639-Other payablesCCCC Third Highway Engineering Co. Ltd.4,924,6983,006,596Other payablesShanghai Jiangtian Industrial Co., Ltd.4,586,0854,586,085Other payablesCCCC East China Investment Co., Ltd.4,130,000Other payablesCCCC Tianjin Dredging Co., Ltd.2,000,00028,187,053Other payablesCCCG1,649,7241,600,544
184184
ItemRelated parties
Ending bookbalance
Beginning book
balanceOther payablesNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.1,491,318-Other payablesCCCC Electrical and Mechanical Engineering Co., Ltd.665,174665,174Other payablesZhenhua Engineering Co., Ltd.346,005346,005Other payablesJiangsu Longyuan Zhenhua Marine Engineering Co., Ltd335,537250,329Other payablesCCCC Second Harbor Engineering Co., Ltd.295,7501,051,750Other payablesZPMC Changzhou Coatings Co., Ltd.107,100108,592Other payablesCCCC Shanghai Equipment Engineering Co., Ltd.100,00089,000Other payablesCCCC Shanghai Harbor Engineering Design & Research Institute Co., Ltd.30,000-Other payablesZhen Hwa Harbour Construction Co., Ltd.6,5936,593Other payablesChina Communications Construction Company Ltd.116101,284,894Other payablesChuwa Bussan Co., Ltd.-6,269,873Other payablesCCCC Tunnel Engineering Company Limited-4,000,000Other payablesChina Harbour Engineering Co., Ltd.-3,625,000Other payablesRoad & Bridge East China Engineering Co., Ltd.-448,442Other payablesCCCC Water Transportation Planning and Design Institute Co., Ltd.-319,340Other payablesCNPC & CCCC Petroleum Sales Co., Ltd.-300,000Other payablesShanghai Zhensha Longfu Machinery Co., Ltd.-150,124Other payablesNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.-100,000Other payablesCCCC First Harbor Engineering Co., Ltd.-87,893Other payablesCCCC Infrastructure Maintenance Group Co., Ltd.-72,477Other payablesCCCC Nanjing Tra?c Engineering Management Co., Ltd.-21,288Short-termborrowings
CCCC Finance Company Ltd.2,501,498,333-Short-termborrowings
CCCC Financial Leasing Co., Ltd415,625,023414,863,968Short-termborrowings
CCCC Xiongan Financial Leasing Co., Ltd70,134,444-Short-termborrowings
CCCC Financial Leasing (Guangzhou) Co., Ltd51,145,242-Long-termborrowings
CCCC Finance Company Ltd.-500,483,333Non-current liabilitiesdue within one year
CCCC Leasing Jiahua No.1 Co., Ltd.231,789,305412,592,400Non-current liabilitiesdue within one year
CCCC Financial Leasing Co., Ltd-203,727,814Non-current liabilitiesdue within one year
CCCC Leasing Jiahua No.2 Co. Ltd.123,040,97263,782,400Long-term payablesCCCC Leasing Jiahua No.1 Co., Ltd.217,496,667131,551,200Long-term payablesCCCC Tianjin Dredging Co., Ltd.139,682,457139,682,457Long-term payablesCCCC Second Harbor Engineering Co., Ltd.60,830,41882,663,041Long-term payablesCCCC Fourth Highway Engineering Co., Ltd.39,558,526-Long-term payablesCCCC Third Harbor Engineering Co., Ltd.32,345,14716,923,594Long-term payablesNo. 2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd.9,520,885-Long-term payablesCCCC - SHEC Third Highway Engineering Co., Ltd.2,012,230-Long-term payablesCCCC Tunnel Engineering Company Limited877,307-Long-term payablesCCCC - SHEC Second Highway Engineering Co., Ltd.125,862-Long-term payablesCCCC Leasing Jiahua No.2 Co. Ltd.-131,551,201Long-term payablesNo.2 Engineering Co., Ltd. of CCCC Fourth Harbor Engineering Co., Ltd.-7,788,241
185185
20207 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 balancesheet date:
Rendering of services for the Group by related parties20202019CCCC Third Harbor Engineering Co., Ltd. 1,196,441,876 1,274,486,284CCCC Tianjin Dredging Co., Ltd. 846,472,448 681,997,993CCCC First Highway Engineering Co., Ltd. 779,111,939 1,386,937,372CCCC First Highway Fifth Engineering Co., Ltd. 388,366,210 -No.2 Engineering Co., Ltd. of CCCC Fourth Highway Engineering Co., Ltd. 305,931,400 -No.1 Engineering Co., Ltd. of CCCC First Harbor Engineering Co., Ltd. 56,568,996 56,568,996Shanghai Communications Construction Contracting Co., Ltd. 9,650,296 -CCCC Tunnel Engineering Company Limited 158,070 158,070CCCC Fourth Highway Engineering Co., Ltd. - 338,361,768CCCC Shanghai Dredging Co., Ltd. - 45,932,122
3,582,701,2353,784,442,605
Standby leasing agreement signed with the related partiesOn December 16, 2015, the Company signed ship rental standby agreement with CCCC Leasing Jiahua No.1 Co., Ltdand CCCC Leasing Jiahua No.2 Co., Ltd (collectively referred to as “CCCC Jiahua”), with the rental term from March 5, 2016to December 5, 2021.The contract would come into e?ect when the ship rental agreement signed by the subsidiary of theCompany and CCCC Jiahua couldn’t be performed normally. As at December 31, 2020, the maximum payment amount ofthe contract was RMB 246,081,944 (as at December 31, 2019: RMB 390,667,201).
Lease assets to related parties20202019Zhenhua Marine Energy (Hong Kong) Co., Ltd.575,994,244891,356,781
20202019China Road & Bridge Corporation 588,402,357 830,028,535CCCC Second Harbor Engineering Co., Ltd. 519,496,777 53,549,590Jiangsu Longyuan Zhenhua Marine Engineering Co., Ltd 399,731,755 15,936,240CCCC Third Harbor Engineering Co., Ltd. 355,392,406 5,470,566CCCC Second Highway Engineering Co., Ltd. 292,697,870 182,569,664Road & Bridge International Co., Ltd. 247,634,918 -CCCC Third Highway Engineering Co. Ltd. 179,310,027 -CCCC First Harbor Engineering Co., Ltd. 160,455,055 1,795,091CCCC Tianjin Industry and Trade Co., Ltd. 119,409,937 -Road & Bridge International Co., Ltd. 89,878,258 -China Highway Engineering Consultants Corporation 85,327,728 -CCCC Fourth Harbor Engineering Co., Ltd 56,200,000 -Installation Engineering Co., Ltd. of CCCC First Harbor Engineering Co. Ltd. 13,919,210 -CCCC Electrical and Mechanical Engineering Co., Ltd. 11,561,947 35,920,354CCCC First Harbor Consultants Co., Ltd. 10,594,847 -The First Construction Company of CCCC Second Harbor Engineering Co., Ltd 5,875,862 -China Communications Construction Company Ltd. 3,988,354 153,839,131CCCC Shanghai Equipment Engineering Co., Ltd. 1,423,925 -CCCC Financial Leasing Co., Ltd - 54,987,809China Harbour Engineering Co., Ltd. - 22,547,495Friede & Goldman, Llc. - 21,714,704No.3 Co. of The Second Navigational Engineering Bureau, CCCC - 14,538
3,141,301,2331,378,373,717
186186
8 Others
√Applicable □Not applicable
Monetary funds deposited in the related parties
20202019CCCC Finance Company Ltd.75,000,000435,344,084
XIII Share-based payment1 General of share based payment
□Applicable √Not applicable
2 Equity-settled share-based payments
□Applicable √Not applicable
3 Cash-settled share-based payments
□Applicable √Not applicable
4 Modication and termination of share-based payment
□Applicable √Not applicable
5 Others
□Applicable √Not applicable
XIV Commitments and contingencies1 Signicant commitments
√Applicable □Not applicable
Signicant external commitments, nature and amount on the balance sheet date (1) Matters related to capital expenditure commitmentsCommitments related to capital expenditure contracted for but not provided in the nancial statements as at the balancesheet date:
20202019Buildings and constructions, machinery equipment707,709,990591,419,876 (2) Commitments related to operating leaseAccording to the irrecoverable operating lease contract concluded, the Group will at least pay rental as follows:
20202019Within 1 year21,723,70732,650,1101-2 years11,694,53820,566,3022-3 years294,54111,239,044Over 3 years4,500132,596
33,717,28664,588,052 (3) L/C commitmentsThe Group had entrusted the bank to issue several L/Cs to purchase imported components and parts. As at December31, 2020, the unpaid amount under the L/Cs was about RMB 1,397,778,837 (as at December 31, 2019: RMB 1,698,125,301).2 Contingencies (1) Signicant 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 airpollution liability dispute, with the case No. (2020) H 03 MC 274.
187187
2020Changxing Branch and the Company attached great importance to this event and established a special working groupto actively communicate with the Federation. The Company and the Federation reached a settlement intention and jointlyexpressed such intention to the court. On January 25, 2021, Shanghai No. 3 Intermediate People’s Court entrusted NanjingInstitute of Environmental Sciences, MEE (hereinafter referred to as “Nanjing Institute”) to evaluate the damages, deductibleexemption items and deductible deduction items involved in this case. According to the current progress, the Companyjudges that the case is likely to be settled by settlement. According to the current practice of environmental civil publicinterest litigation in China, the Company preliminarily judges that if the deductible items are supported by the court, theamount of alternative restoration costs will be reduced to a certain extent.As of the approval date of the nancial statements, Nanjing Institute has not yet carried out the appraisal work, thesettlement agreement has not been reached, and the case has not entered the formal hearing stage. Therefore, theCompany is unable to make a reliable estimate of the result of the case and the possibility and amount of the loss caused bythe case. The Company will continue to follow up the impact of the case.
(2) If the company has no signicant contingencies to be disclosed, it shall also explain:
□Applicable √Not applicable
3 Others
□Applicable √Not applicable
XV Post balance sheet events1 Signicant non-adjustment events
□Applicable √Not applicable
2 Prot distribution
□Applicable √Not applicable
3 Sales return
□Applicable √Not applicable
4 Description of other post balance sheet events
□Applicable √Not applicable
XVI.Other signicant events
1 Correction of previous accounting errors
(1) Retrospective restatement
□Applicable √Not applicable
(2) Prospective application
□Applicable √Not applicable
2 Debt restructuring
√Applicable □Not applicable
The group and the debtor signed the Debt Repayment Framework Agreement, which agreed to use a newly developedcommercial property and three sets of self-owned equipment of the debtor to o?set the loan owed. When the debt-o?settingassets had no right defects and the ownership change had been completed, the rights and obligations of both parties shallbe terminated, and the claims and debts shall be extinguished. As of December 31, 2020, the ownership transfer of the debt-o?setting property had been completed. The Group recognized the fair value of the abandoned claims according to the fairvalue of the property received, and reversed the bad debt provision for accounts receivable of RMB 64,230,500.3 Assets exchange
(1) Non-monetary assets exchange
□Applicable √Not applicable
(2) Other assets exchange
□Applicable √Not applicable
188188
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 internalreporting 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 generateincome and expenses in daily activities; (2) the management of the Group can regularly evaluate its operating resultsto determine its allocation of resources and to evaluate its performance; (3) the Group is able to obtain its accountinginformation regarding nancial position, operating results and cash ows, etc. If two or more operating segments have similareconomic characteristics, and have met a certain conditions, they will be merged into one operating segment.
The Group identied the business as an operating segment for analysis and assessment based on internal organizationstructure, management requirement and internal report system.
(2) Financial information of reporting segment
□Applicable √Not applicable
(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
20202019Port machinery14,457,042,916 16,458,563,164Heavy equipment1,062,669,1951,491,597,749“Building-transfer” project and engineering construction2,365,760,874 2,564,145,018Steel structure and related income3,277,507,651 2,709,430,977Shipping and others1,233,658,739 989,117,844Sales of materials71,730,251 84,343,163Equipment lease and others186,772,026298,389,968
22,655,141,65224,595,587,883Geographic informationIncome from external transactions
20202019Chinese Mainland13,203,886,12512,728,821,429Asia (excluding Chinese Mainland)3,289,553,492 3,469,961,193Europe2,604,103,174 3,416,405,499North America1,345,494,819 2,205,954,534Africa468,958,316761,455,510South America444,522,956 963,140,369Chinese Mainland (export sales)1,061,063,332697,069,989Oceania237,559,438352,779,360
22,655,141,65224,595,587,883The income from external transaction is attributable to where the customer is located.
189189
2020Total non-current assets
20202019Chinese Mainland18,150,805,48822,450,499,096Asia (excluding Chinese Mainland)9,939,268,7797,270,356,589Others66,235,99341,013,037
28,156,310,26029,761,868,722The non-current assets are attributable to where they are located, excluding financial assets, long-term equityinvestment, goodwill, deferred income tax assets and other non-current assets.7 Other signicant transactions and events with impacts on investors' decisions
□Applicable √Not applicable
8 Others
□Applicable √Not applicable
XVII. Notes to main items of the nancial statements of the parent company1 Accounts receivable
(1) Disclosure by aging
√Applicable □Not applicable
Unit: Yuan Currency: CNYAgingEnding book balanceWithin 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year14,603,912,3801-2 years783,348,1722-3 years215,669,424Over 3 years3-4 years140,879,0674-5 years333,537,300Over 5 years1,059,689,113Total17,137,035,456 (2) Disclosure by bad debt calculation method
√Applicable □Not applicable
Unit: Yuan Currency: CNYCategory
December 31, 2020December 31, 2019Book balanceProvision for bad debts
Book value
Book balanceProvision for bad debts
Book valueAmount
Proportion
(%)
Amount
Proportion ofprovision (%)
Amount
Proportion(%)
Amount
Proportion ofprovision (%)Provision for bad debts accrued on anindividual basis
660,986,5104529,388,51080131,598,000753,396,3855591,042,38578162,354,000Including:
Provision for bad debts by portfolio16,476,048,946961,274,320,722815,201,728,22415,325,782,241951,090,238,346714,235,543,895IncludingTotal17,137,035,456/1,803,709,232/15,333,326,22416,079,178,626/1,681,280,731/14,397,897,895
190190
Individual provision for bad debts:
√Applicable □Not applicable
Unit: Yuan Currency: CNYName
December 31, 2020Book balanceProvision for bad debtsProportion of provision (%)Reason for provisionAccounts receivable 1277,613,400146,015,39953Counterparty nancial shortageAccounts receivable 2187,863,245187,863,246100Contract disputeAccounts receivable 393,954,00093,954,000100Counterparty nancial shortageAccounts receivable 442,979,94742,979,947100Contract disputeAccounts receivable 526,099,66526,099,665100Contract disputeAccounts receivable 611,037,00011,037,000100Contract disputeAccounts receivable 78,103,0438,103,043100Contract disputeAccounts receivable 86,980,3716,980,371100Contract disputeAccounts receivable 93,300,1793,300,179100Contract disputeAccounts receivable 102,236,4982,236,498100Contract disputeAccounts receivable 11819,162819,162100Contract disputeTotal660,986,510529,388,51080/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 balanceProvision for bad debtsEstimated credit loss ratio %Reason for provisionAccounts receivable 1324,708,000162,354,00050Counterparty nancial shortageAccounts receivable 2182,958,900182,958,900100Contract disputeAccounts receivable 3158,184,500158,184,500100Counterparty nancial shortageAccounts receivable 427,904,87027,904,870100Contract disputeAccounts receivable 526,911,14726,911,147100Contract disputeAccounts receivable 610,748,86910,748,869100Contract disputeAccounts receivable 77,815,5007,815,500100Contract disputeAccounts receivable 87,463,1747,463,174100Contract disputeAccounts receivable 93,582,1353,582,135100Contract disputeAccounts receivable 102,224,0132,224,013100Contract disputeAccounts receivable 11895,277895,277100Contract dispute
753,396,385591,042,385
Provision for bad debts by portfolio:
□Applicable √Not applicable
If the provision for bad debts is calculated based on the general model of expected credit loss, please refer to otherreceivables for disclosure:
□Applicable √Not applicable
(3) Provision for bad debts
□Applicable √Not applicable
The recovered or reversed provision for bad debts with signicant amount:
□Applicable √Not applicable
(4) Accounts receivable actually written o? in the current period
□Applicable √Not applicable
Write-o? of important accounts receivable
□Applicable √Not applicable
(5) Top 5 accounts receivable in terms of ending balance presented by debtor
√Applicable □Not applicable
As at December 31, 2020, top 5 accounts receivable in terms of ending balance presented by debtor summarized andanalyzed as follows:
191191
2020BalanceProvision for bad debts
Proportion in total balance ofaccounts receivable %Total accounts receivable of top 5 balances9,712,993,888242,665,74657
As at December 31, 2019, top 5 accounts receivable in terms of ending balance presented by debtor are summarizedand analyzed as follows:
BalanceProvision for bad debts
Proportion in total balance of
accounts receivable %Total accounts receivable of top 5 balances6,205,808,56330,765,48449
(6) Accounts receivable derecognized due to the transfer of nancial assets
□Applicable √Not applicable
(7) Amount of assets and liabilities formed by transferring accounts receivable and continuing involvement
□Applicable √Not applicable
Other description:
√Applicable □Not applicable
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
20202019Book balance ofestimated default
Estimated credit
loss ratio (%)
Expected creditloss for the entireduration
Book balance ofestimated default
Estimated credit
loss ratio (%)
Expected creditloss for the entiredurationWithin 1 year14,580,148,0802243,597,5498,402,385,557172,727,5001-2 years736,555,94530224,110,9421,158,723,629451,346,3222-3 years114,949,4243944,717,6221,354,366,423569,254,1713-4 years140,722,7076896,047,068253,416,2072973,708,8324-5 years176,263,9003664,286,079182,871,42769126,053,375Over 5 years727,408,89083601,561,462674,551,15390606,600,750
16,476,048,9461,274,320,72212,026,314,396999,690,950Changes in the provision for bad debts of accounts receivable are as follows:
December 31,
2019
Adjustmentsfor changes inaccounting policies
January 1, 2020Provision in 2020Reversal in 2020
December 31,202020201,590,733,33590,547,3961,681,280,731400,585,712(278,157,211)1,803,709,23220191,496,719,90774,767,0271,571,486,934188,332,979(169,086,578)1,590,733,335
2 Other receivablesItem presentation
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemDecember 31, 2020December 31, 2019Interest receivableDividends receivableOther receivables5,505,896,4137,884,801,508Total5,505,896,4137,884,801,508Other description:
□Applicable √Not applicable
Interest receivable
(1) Classication of interest receivable
□Applicable √Not applicable
(2) Signicant overdue interest
□Applicable √Not applicable
192192
(3) Provision for bad debts
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
Dividends receivable
(4) Dividends receivable
□Applicable √Not applicable
(5) Signicant 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: CNYAgingDecember 31, 2020Within 1 yearIncluding: subitem within 1 yearSub-total of items within 1 year5,445,670,9561-2 years10,638,9022-3 years45,823,753Over 3 years3-4 years3,769,9284-5 years999,828Over 5 years9,318,653Total5,516,222,020 (2) Classication by nature of funds
√Applicable □Not applicable
Unit: Yuan Currency: CNYNature of fundsDecember 31, 2020December 31, 2019Current accounts between subsidiaries4,966,655,2707,080,666,063Taxes on outstanding payment receivable369,871,269212,681,400Bid and performance bonds58,732,928230,696,849Lease payment receivable33,434,66833,434,668Money on call of on-site product service30,242,06330,215,954Sta? loan receivable19,913,63823,009,961Customs deposits33,365,31538,241,878Export tax refund214,352,290Others4,006,86921,502,445Total5,516,222,0207,884,801,508
(3) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNYProvision for bad debt
Stage IStage IIStage III
TotalEstimated creditlosses over the next12 months
Expected credit loss for theentire duration (no creditimpairment)
Expected credit loss forthe entire duration (creditimpairment has occurred)Balance as at January 1, 20204,425,5195,900,08810,325,607Balance as at January 1, 2020 incurrent period
193193
2020
Provision for bad debt
Stage IStage IIStage III
TotalEstimated creditlosses over the next12 months
Expected credit loss for theentire duration (no credit
impairment)
Expected credit loss forthe entire duration (creditimpairment has occurred)--Transferred to Stage II--Transferred to Stage III--Reversal to Stage II--Reversal to Stage IProvision in the current periodReversal in the current periodWrite-o? in the current periodCharge-o? in the current periodOther changesBalance as at December 31, 20204,425,5195,900,08810,325,607Description of signicant changes in book balance of other receivables with changes in loss provision in the currentperiod:
□Applicable √Not applicable
The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk ofnancial instruments has increased signicantly:
□Applicable √Not applicable
(4) Provision for bad debts
√Applicable □Not applicable
Unit: Yuan Currency: CNYCategory
December 31,
2019
Changes in current period
December 31,
2020Provision
Recovery or
reversal
Write-o? orcharge-o?
Other changes10,325,60710,325,607Total10,325,60710,325,607Those with signicant reversal or recovery amount of provision for bad debts:
□Applicable √Not applicable
(5) Other receivables actually written o? in the current period
□Applicable √Not applicable
(6) Top 5 other receivables in terms of ending balance presented by debtor
√Applicable □Not applicable
Unit: Yuan Currency: CNYNameNatureDecember 31, 2020Aging
Proportion in thetotal balance of other
receivables (%)
Balance of provisionfor bad debts as atDecember 31, 2020Other receivables 1
Current accounts of thesubsidiaries
2,986,812,658Within 1 year54Other receivables 2
Current accounts of thesubsidiaries
772,089,126Within 1 year14Other receivables 3
Current accounts of thesubsidiaries
514,133,383Within 1 year9Other receivables 4
Current accounts of thesubsidiaries
334,014,913Within 1 year6Other receivables 5
Current accounts of thesubsidiaries
105,053,738Within 1 year2Total/4,712,103,818/85
(7) Receivables involving government subsidies
□Applicable √Not applicable
(8) Other receivables derecognized due to transfer of nancial assets
□Applicable √Not applicable
194194
(9) Amount of assets and liabilities formed by transferring other receivables and continuing involvement
□Applicable √Not applicable
Other description:
□Applicable √Not applicable
3 Long-term equity investments
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
December 31, 2020December 31, 2019Book balance
Provision for
impairment
Book valueBook balance
Provision forimpairment
Book valueInvestment insubsidiaries
5,703,647,7015,703,647,7015,935,939,2435,935,939,243Investment in jointventures and associates
3,021,960,3523,021,960,3522,812,546,4862,812,546,486Total8,725,608,0538,725,608,0538,748,485,7298,748,485,729 (1) Investment in subsidiaries
√Applicable □Not applicable
Unit: Yuan Currency: CNYInvested entity
December 31,
2019
Increasein currentperiod
Decreasein currentperiod
December 31,
2020
Provision forimpairment incurrent period
Balance of provisionfor impairment as atDecember 31, 2020Shanghai Zhenhua Heavy Industries Port Machinery GeneralEquipment Co., Ltd.
2,201,086,7442,201,086,744Nanjing Ninggao New Channel Construction Co., Ltd100,000,000100,000,000Nantong Zhenhua Heavy Equipment Manufacturing Co., Ltd.1,154,936,9001,154,936,900ZPMC Transmission Machinery (Nantong) Co. Ltd.300,000,000206,112,853506,112,853CCCC Zhenjiang Investment Construction ManagementDevelopment Co., Ltd.
707,000,000330,561,396376,438,604CCCC Tianhe Mechanical Equipment Manufacturing Co., Ltd242,542,999242,542,999ZPMC Qidong Marine Engineering Co., Ltd.203,000,000203,000,000CCCC Liyang Urban Investment and Construction Co., Ltd.243,000,000120,000,000363,000,000Shanghai Zhenhua Shipping Co., Ltd.140,260,673140,260,673Shanghai Zhenhua Ocean Engineering Service Co., Ltd100,000,000100,000,000ZPMC Electric Co., Ltd.50,000,00050,000,000CCCC Investment & Development Qidong Co., Ltd.192,500,000192,500,000ZPMC North America Inc.18,564,52018,564,520ZPMC Netherlands Co?peratie U.A.29,366,08429,366,084Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd.9,964,2009,964,200ZPMC Machinery Equipment Services Co., Ltd.7,000,0007,000,000ZPMC Lanka Company (Private) Limited6,183,9786,183,978ZPMC Middle East Fze5,271,1205,271,120ZPMC Zhangjiagang Port Machinery Co., Ltd.4,518,0004,518,000ZPMC Limited Liability Company10,172,07010,172,070ZPMC Southeast Asia Holding Pte. Ltd. 12,513,11412,513,114ZPMC Engineering Africa (Pty) Ltd.3,084,0003,084,000ZPMC Engineering (India) Private Limited2,953,2002,953,200ZPMC Brazil Servi?o PortuáriosLTDA2,936,7712,936,771ZPMC Korea Co., Ltd. 6,398,0596,398,059ZPMC UK LD2,797,9212,797,921ZPMC Australia Company (Pty) Limited2,708,5002,708,500CCCC Rudong Construction Development Co., Ltd.36,664,60036,664,600CCCC Yongjia Construction Development Co., Ltd.128,000,000128,000,000CCCC Zhenhua Lvjian Technology (Ningbo) Co., Ltd.4,000,0004,000,000ZPMC Latin America Holding Corporation3,307,8503,307,850ZPMC GmbH Hamburg207,940207,940ZPMC Fuzhou O?shore Construction Co., Ltd. 5,000,0005,000,000CCCC (Dongming) Investment and Construction Co., Ltd.14,700,00014,700,000Total5,935,939,243340,812,853573,104,3955,703,647,701
195195
2020 (2) Investment in joint ventures and associates
√Applicable □Not applicable
Unit: Yuan Currency: CNYInvested entity
December 31,
2019
Increase/decrease in the current period
December31, 2020
Balance ofprovision forimpairment asat December31, 2020Furtherinvestment
Reducedinvestment
Prot or losson investmentsunder the equitymethod
Adjustmentof othercomprehensive
income
Changesin otherequityCash dividends orprot declared tobe distributed
Provisionforimpairment
OthersI. Joint venturesJiangsu Longyuan Zhenhua MarineEngineering Co., Ltd
260,880,65315,179,788276,060,441ZPMC Mediterranean LimanMakinalari Ticaret Anonim Sirketi
3,735,189-3,165,847569,342Sub-total264,615,84212,013,941276,629,783II. AssociatesCCCC Marine Engineering &Technology Research Center Co., Ltd.
16,730,804185,67816,916,482ZPMC Changzhou Coatings Co., Ltd.18,315,9642,241,6343,984,47116,573,127CCCC Estate Yixing Co., Ltd.183,660,5415,982,6212,700,000186,943,162CCCC Financial Leasing Co., Ltd1,785,702,878118,432,798-1,271,67619,713,2421,883,150,758CCCC Yancheng ConstructionDevelopment Co., Ltd.
289,766,242128,750,000418,516,242China Communications ConstructionUSA Inc.
60,719,949-1,690,256-3,776,69555,252,998CCCC South American RegionalCompany SARL
186,678,840-2,462,090-23,615,519160,601,231Shanghai Ocean EngineeringEquipment Manufacturing InnovationCenter Co., Ltd.
6,355,426-485,0855,870,341CCCC Xiongan Urban ConstructionDevelopment Co., Ltd.
1,500,0006,2281,506,228Sub-total2,547,930,644130,250,000122,211,528-28,663,89026,397,7132,745,330,569Total2,812,546,486130,250,000134,225,469-28,663,89026,397,7133,021,960,352Other description:
Not applicable4 Operating revenue and operating costs (1) Operating revenue and operating costs
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred in the current periodAmount incurred in the previous periodRevenueCostRevenueCostPrimary businesses19,422,614,72817,180,562,02922,756,923,77519,937,920,290Other business2,369,957,3492,199,696,8142,283,380,6552,134,841,176Total21,792,572,07719,380,258,84325,040,304,43022,072,761,466
20202019Revenue fromprimary business
Costs of primarybusiness
Revenue fromprimary business
Costs of primarybusinessPort machinery12,828,666,25410,833,429,44715,145,230,75912,686,901,266Heavy equipment2,083,801,6612,044,333,6543,127,014,2012,999,144,824Steel structure and related income3,260,709,4353,164,491,8252,695,894,3132,622,346,875“Building-transfer” project and engineeringconstruction
1,249,437,3781,138,307,1031,788,784,5021,629,527,32519,422,614,72817,180,562,02922,756,923,77519,937,920,290
196196
Other business revenue and cost are listed as follows:
20202019Revenue from otherbusiness
Costs of otherbusinesses
Revenue fromother business
Costs of otherbusinessesSales of materials1,860,879,2951,857,809,2861,873,183,0091,875,749,099Equipment lease and others509,078,054341,887,528410,197,646259,092,077
2,369,957,3492,199,696,8142,283,380,6552,134,841,176 (2) Income from contracts
√Applicable □Not applicable
Unit: Yuan Currency: CNYClassication of ContractXXX-DivisionTotalType of goodsPort machinery12,828,666,254Steel structure and related income3,260,709,435Sales of materials and others2,305,490,116Engineering construction project1,249,437,378Heavy equipment2,083,801,661By region of operationChinese Mainland13,378,873,641Europe2,414,485,764Asia (excluding Chinese Mainland)2,810,063,459North America1,087,667,642Chinese Mainland (export sales)1,061,063,332South America390,569,869Africa372,464,436Oceania212,916,701Market or customer typeContract type
Revenue recognized at a certain point of timePort machinery12,828,666,254Sales of materials and others2,305,490,116Heavy equipment2,083,801,661Steel structure and related income1,695,443,076Revenue recognized in a certain period of timeEngineering construction project1,249,437,378Steel structure and related income1,565,266,359By time of goods transferBy contract termBy sales channelTotal21,728,104,844Description of income from contracts:
□Applicable √Not applicable
(3) Performance obligations
□Applicable √Not applicable
(4) Apportionment to remaining performance obligations
□Applicable √Not applicable
Other description:
None
197197
20205 Investment income
√Applicable □Not applicable
Unit: Yuan Currency: CNYItem
Amount incurred inthe current period
Amount incurred in theprevious periodIncome from long-term equity investments calculated under cost method66,771,535788,958Income from long-term equity investments calculated under equity method134,225,469106,972,779Investment income from disposal of long-term equity investment83,283,620Investment income from held-for-trading nancial assets during the holding period449,951Dividend income from other equity instrument investment during holding6,169,971Interest income from debt investment during holdingInterest income from other debt investment during holdingInvestment income from disposal of held-for-trading nancial assets195,487,757Investment income from disposal of other equity instrument investmentInvestment income from disposal of debt investmentInvestment income from disposal of other debt investmentTotal486,388,303107,761,737Other description:
None6 Others
□Applicable √Not applicable
XVIII Supplementary information1 Items of non-recurring prot or loss in current period
√Applicable □Not applicable
Unit: Yuan Currency: CNYItemAmountRemarksProt or loss from disposal of non-current assets36,620,758Tax refunds, exemptions and reductions with ultra vires approval or without o?cial approval documentsGovernment grants included in the current prot or loss (except for the one closely related to the operations ofthe Company and gained constantly at a xed amount or quantity according to certain standard)
97,849,026Capital occupation fees charged to the non-nancial enterprises and included in current prot or lossProt generated when the Company’s investment cost in acquiring the subsidiary, a?liated company and jointventure is less than the fair value of the recognizable net assets of the invested unit at the time of acquiringProt or loss from non-monetary assets exchangeProt or loss from the assets entrusted to others for investment or managementProvisions for impairment of assets accrued due to force majeure such as natural disasterProt or loss from debt reorganizationCost for enterprise reorganization, such as sta?ng expenses and integration feesProt or loss in excess of the fair value generated in transaction with unfair priceCurrent net prot or loss of the subsidiary generated from the business combination under common control fromthe beginning of the period to the combination dateProt or loss from the contingencies, unrelated to the normal business of the CompanyProt or loss on changes in fair values of held-for-trading nancial assets, derivative nancial assets, held-for-trading nancial liabilitiesand derivative nancial liabilities, and investment income obtained from disposalof held-for-trading nancial assets, derivative nancial assets, held-for-trading nancial liabilities, derivativenancial liabilities and other credit investment, except for e?ective hedging operations associated with thecompany's normal operations
356,116,979Reversal of provision for impairment of receivables and contract assets subject to separate impairment test78,007,100Prot or loss from external entrusted loans
198198
ItemAmountRemarksProt or loss on changes in fair value of investment property by follow-up measurement in fair value modeImpact on current prot or loss due to one-o? adjustment to current prot or loss according to the requirementsof tax and accounting laws and regulationsCustody fees of entrusted operationOther non-operating revenue and expenses except for the above-mentioned items4,718,614Other prot or loss items that conform to the denition of non- recurring prot or lossA?ected amount of income tax-77,383,660A?ected amount of minority equity-15,226,311Total480,702,506
For the non-recurring profit or loss items defined by the Company according to the "Explanatory Announcement onInformation Disclosure of Companies O?ering Securities to the Public No. 1 - Non-recurring Prot or Loss", and the recurringprofit or loss items defined by the non-recurring profit or loss items listed in "Explanatory Announcement on InformationDisclosure of Companies O?ering Securities to the Public No. 1 – Non-recurring Prot or Loss”, reasons shall be explained.
□Applicable √Not applicable
2 Return on net assets and earnings per share
√Applicable □Not applicable
Prot in the reporting period
Weighted average rate ofreturn on net assets (%)
Earnings per shareBasic earningsper share
Diluted earningsper shareNet prot attributable to ordinary shareholders of the Company3.040.080.08Net prot attributable to ordinary shareholders of the Companyafter deducting non-recurring prots and losses
-0.43-0.01-0.01
3 Di?erences in accounting data under domestic and overseas accounting standards
□Applicable √Not applicable
4 Others
□Applicable √Not applicable
199199
2020Section XIIList of Reference Documents
List of ReferenceDocuments
Financial statements a?xed with the signature and seal of legal representative, person in charge of accountingwork and person in charge of accounting agencyList of ReferenceDocuments
Original auditors' report stamped by the accounting rm and signed and stamped with the certied publicaccountants.List of ReferenceDocuments
Original copies of the documents and announcement of the Company published on the newspaper designatedby 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 applicable