[年报]振华重工(600320):振华重工2023年年度报告（英文版）
Annual Report 202 $ 0/5&/54 Section I Definitions ....................................................................................2 Section II Company Profile and Principal Financial Indexes ..........3Section III Management Discussion and Analysis...............................7Section IV Corporate Governance ............................................................23Section V Environmental and Social Responsibility .........................39Section VI Important Events .......................................................................47 Section VII Changes in Shares and Shareholders' Situation .............61Section VIII Preference Shares ......................................................................67 Section IX Bonds .............................................................................................68 Section X Financial Report .........................................................................71 Financial statements affixed with the signature and seal of legal representative, person in charge of accounting work and person in charge of accounting agency.List of Reference Original auditors' report stamped by the accounting firm and signed and stamped with the Documents certified public accountants. Original copies of the documents and announcements of the Company published on the newspaper designated by the CSRC during the reporting period.* This Report has been prepared in Chinese and translated into English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.ANNUAL REPORT 2023 ANNUAL REPORT 2023 Company, the Company, ZPMC Refers to Shanghai Zhenhua Heavy Industries Co., Ltd.CCCC Refers to China Communications Construction Company Ltd.CCCG Refers to China Communications Construction Group Co., Ltd.CCCG HK Refers to CCCG (HK) Holding Limited Reporting period Refers to From Jan. 1, 2023 to Dec. 31, 2023 Abbreviation of the Company name in Chinese ???? Company name in English SHANGHAI ZHENHUA HEAVY INDUSTRIES CO.,LTD.Abbreviation of the Company name in English ZPMC Legal representative of the Company You Ruikai II. Contact Information Secretary of the Board of Directors Name Sun Li Address No. 3261, Dongfang Road, Shanghai Telephone 021-50390727 Fax 021-31193316 E-mail [email protected] III. Basic Information Registered address No.3470, Pudong South Road, Shanghai Changes of registered address N/A Office address No. 3261, Dongfang Road, Shanghai Postal code of office address 200125 Website http://www.zpmc.com E-mail [email protected] IV. Information disclosure and placement location Shanghai Securities News, www.cnstock.com Newspaper and website for disclosure of the annual report China Securities Journal, www.cs.com.cnHong Kong Wen Wei Po, www.wenweipo.com Stock exchange website for disclosure of the annual report www.sse.com.cnPlacement location of the annual report Office of the board of directorsV. Stock information Stock Information Stock type Stock exchange Stock abbreviation Stock code Stock abbreviation before changeA-share Shanghai Stock Exchange (SSE) Zhenhua Heavy 600320 ZPMC IndustriesB-share Shanghai Stock Exchange (SSE) Zhenhua B-share 900947 -VI. Other relevant information Name Ernst & Young Hua Ming LLP Public accounting firm engaged Room 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1 East Changan Office address by the Company (domestic) Street, Dongcheng District, BeijingSigned by the Accountants Gao Chong, Gu Chengli ANNUAL REPORT 2023 ANNUAL REPORT 2023 Year-on-year Main accounting data 2023 2022 2021 change (%) Operating revenue 32,933,263,802 30,191,792,987 9.08 25,977,976,968Net profit attributable to the shareholders of the listed company 519,978,765 371,937,232 39.80 439,839,245 Net profit attributable to the shareholders of the listed company 274,145,961 414,835,324 -33.91 -440,186,675 after deducting the non-recurring profits and losses Net cash flows from operating activities 5,184,184,446 2,568,564,023 101.83 2,119,639,518Year-on-year At the end of 2023 At the end of 2022 At the end of 2021 change (%) Net assets attributable to the shareholders of the listed company 15,756,552,794 15,168,470,117 3.88 14,990,218,631 Total assets 84,864,576,091 78,213,168,723 8.50 78,332,081,199(II) Major financial indexes Major financial indexes 2023 2022 Year-on-year change (%) 2021Basic earnings per share (RMB/share) 0.10 0.07 42.86 0.08 Diluted earnings per share (RMB/share) 0.10 0.07 42.86 0.08 Basic earnings per share after deducting non- recurring profits and losses 0.05 0.07 -28.57 -0.09 (RMB/share) Weighted average ROE (%) 3.37 2.39 +0.98 2.90 Weighted average ROE after deducting non-recurring profits and losses (%) 1.74 2.68 -0.94 -3.48Explanations about the main accounting data and financial indexes in the past 3 years as at the end of the reporting period √ Applicable ? Not Applicable The change in net profit attributable to the shareholders of the listed company was mainly due to the increase in profit resulting from the increase in project delivery of the Company.The change in net profit attributable to the shareholders of the listed company after deducting the non-recurring profits ’ and losses was mainly due to the increase in the Company s provision for inventory depreciation.The change in the net cash flows from operating activities was mainly due to the increase in cash received from the Company’s sale of goods and provision of services. The change in the basic earnings per share was mainly due to the increase in the Company’s profits. ’ The change in the diluted earnings per share was mainly due to the increase in the Company s profits. VIII. Differences in accounting data under domestic and overseas accounting standards(I) Difference in net profits and net assets attributable to the shareholders of the listed company in the financial statements synchronously disclosed under international and China’s accounting standards ? Applicable √ Not Applicable (II) Difference in net profits and net assets attributable to the shareholders of the listed company in the financial statements synchronously disclosed under foreign and China’s accounting standards ? Applicable √ Not Applicable (Jan. to Mar.) (Apr. to Jun.) (Jul. to Sep.) (Oct. to Dec.) Operating revenue 6,019,689,227 7,389,118,395 9,102,390,093 10,422,066,087Net profit attributable to the shareholders of the listed company 129,537,269 150,348,735 39,740,347 200,352,414 Net profit attributable to the shareholders of the listed company 28,768,092 41,855,152 120,014,924 83,507,793 after deducting the non-recurring profits and losses Net cash flows from operating activities -923,639,281 2,316,977,981 -219,191,569 4,010,037,315Explanations about the differences between the quarterly data and the data in periodically disclosed reports ? Applicable √ Not Applicable X. Non-recurring profit and loss items and amount √ Applicable ? Not Applicable Unit: Yuan Currency: CNY Note Non-recurring profit and loss items Amount in 2023 Amount in 2022 Amount in 2021(if applicable) Profit or loss from disposal of non-current assets, including the write-79,038,662 ? 66,091,456 240,161,569 off portion of the provision of asset impairment Government subsidies included in current profits and losses except for government subsidies closely related to the normal operations of the Company, in line with national policies, and obtained according 107,480,822 ? 106,415,947 81,153,206 to determined standards, with a lasting impact on the Company’s profits and losses Profit or loss from changes in fair value of financial assets and financial liabilities held by non-financial enterprises and from disposal 94,482,602 ? -214,877,284 643,903,925 of financial assets and financial liabilities, except for effective hedging operations associated with the Company’s normal operations Reversal of provision for impairment of receivables subject to ? 94,986,600 separate impairment test Other non-operating revenue and expenses except for the above- 19,796,255 ? 27,301,769 12,089,008 mentioned items Other profit or loss items that conform to the definition of non- ? recurring profit or loss Less: Affected amount of income tax 45,161,118 ? 11,561,380 179,212,457Affected amount of minority equity (after tax) 9,804,419 ? 16,268,600 13,055,931Total 245,832,804 ? -42,898,092 880,025,920 Explanations should be provided to the items not listed in the “Explanatory Announcement on Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss”, but identified as non-recurring profit or loss items with significant amount by the Company, and the non-recurring profit or loss items listed in the “Explanatory Announcement on Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss”, but defined as recurring profit or loss items by the Company.? Applicable √ Not Applicable ANNUAL REPORT 2023 ANNUAL REPORT 2023 Impact on current Item December 31, 2022 December 31, 2023 Current change profits Jiangxi Huawu Brake Co., Ltd. 199,652,466 168,181,696 -31,470,770 -8,980,321Qingdao Port International Co., Ltd. 348,072,750 248,085,844 -99,986,906 79,238,655China Railway Signal & Communication Corporation Limited 280,317,612 281,346,332 1,028,720 21,779,691 Shenwan Hongyuan Group Co., Ltd. 870,116 0 -870,116 162,966 COSCO Shipping Holdings Co., Ltd. 40,132,120 14,542,525 -25,589,595 2,959,460Equity instrument investment 8,438,278 8,438,278 0 0 Hunan Fengri Power & Electric Co., Ltd. 30,657,862 29,951,235 -706,627 335,790CCCC Highway Bridges National Engineering Research Centre 22,151,670 24,986,999 2,835,329 0 Co., Ltd. CCCC National Engineering Research Center of Dredging 8,938,170 10,440,495 1,502,325 0 Technology and Equipment Co., Ltd. Shenyang Weichen Crane Equipment Co., Ltd. 5,205,300 6,617,653 1,412,353 0Ningbo Weilong Port Machinery Co., Ltd. 5,825,195 15,333,177 9,507,982 0Shanghai Longchang Lifting Equipment Co., Ltd. 697,422 739,815 42,393 0Jiangsu Zhangjinggao Bridge Co., Ltd. 0 16,790,000 16,790,000 0Total 950,958,961 825,454,049 -125,504,912 95,496,241 XII. Others √ ? Applicable Not Applicable container shore bridge, full-auto double-trolley shore bridge and two-way anti-swing system, which had promoted the technical upgrade of the automated container terminals in the world and become the global trendsetter of port machinery development. The Company had successfully built China's first automated terminal --- Xiamen Ocean Gate Automated Terminal of COSCO, Asia's first full-auto terminal ---Qingdao Port Full-auto Terminal, and the world's largest single-berth full-auto terminal - Yangshan Full-auto Terminal (Phase IV) of Shanghai Port. The automated terminal equipment and systems provided by the Company had been popularized in nearly 60 automated terminal projects at home and abroad, accounting for more than 70% of automated terminals worldwide. The Company manufactured the world’s largest full-revolving crane vessel, namely “Zhenhua 30” Vessel, helping the construction of Hong Kong-Zhuhai- Macao Bridge. The Company also fabricated all of the steel structure for San Francisco-Oakland Bay Bridge, which was regarded as a highly difficult project by the bridge industry in the world. enterprises, the Company has a national enterprise technology center, a national engineering research center of core equipment for offshore lifting and pipe-laying, a national postdoctoral research center, a provincial and ministerial academician and expert workstation, a provincial and ministerial key laboratory and a provincial and ministerial engineering research and development center. As of the end of 2023, the Company had applied for a total of 3,925 patents, with 2,169 valid patents and 61 international authorizations. The Company insisted on the combination of independent R&D and industry-university-research, established long-term cooperative R&D relationships with professional research institutions and customers, formed a R&D and innovation platform system to support the high- quality development of the enterprise, and built the strategic force for scientific and technological innovation. By combining value creation and data-driven approach, it promoted digital construction and intelligent transformation and upgrading, established four major digital development areas: operation management, design and R&D, production and manufacturing, operation and maintenance services, and created an integrated collaborative platform for design, process and manufacturing with automated equipment and digital operation management as the core, to promote the “upgrading” of industrial development. Holding onto the development direction of “high-end, intelligent and green” equipment manufacturing, the Company continuously introduced new technologies, new products and new services leading the industry development. With a mastery of the core technologies of large-scale, efficient, green and low-carbon port machinery, the Company launched new models such as full-truss beam quay cranes and all-electric tire cranes, and built a diversified product matrix. With a mastery of the core technology of the terminal production control system, the Company also pioneered the Terminal Operating System (TOS) integrated with the Equipment Control System (ECS), comprehensively enhancing its system integration capabilities. A new green stand-alone product was released, and the Model S ASC high-speed automated rail-mounted gantry crane was designed to be ultra light-weight. The Company achieved internationally leading results in intelligent sensing trackless navigation technology, and globally pioneered the development of unmanned straddle carrier, automatic guided vehicle and other products and technologies integrating positioning function, thereby making ports more intelligent. “Tiankun” manufactured by the Company made a breakthrough in the core technology of the large-sized self-propelled cutter suction dredger, making China’s design and construction technology of the dredger rank the forefront in the world. The “Independent Research and Development and Industrialization of Large Offshore Cutter Suction Dredging Equipment” won the Grand Prize of the National Award for Science and Technology Progress, the “Research and Application of Key Technologies for the New Generation Port Container Crane” won the First Prize of the ANNUAL REPORT 2023 ANNUAL REPORT 2023 home and abroad with quality products and services. The Company has constantly strengthened the global network layout of overseas branches and has established several overseas branches in the world, established good partnership and solid cooperation foundation with local internationally renowned enterprises and upstream and downstream enterprises of the industry, and continuously exerted its localization advantages. Based on its global operation and service network, the Company has provided integrated and lean operation and lifecycle service for global customers in a fast, accurate and comprehensive way. The Company has a service team composed of more than 1,000 high-quality professionals on the site all over the world, which can provide efficient solutions and perfect spare parts service support and supply goods to the world in the shortest time. Terminexus, a wholly-owned subsidiary of the Company, has built the first digital supply chain platform in port machinery industry.V. Performance during the reporting period During the reporting period, the Company’s operating revenue was steadily rising and its profitability of primary business improved significantly. The Company realized operating revenue of approximately RMB 32.933 billion, representing a year-on-year increase of 9.08%; the net profit attributable to the parent company was approximately RMB 0.52 billion, representing a year-on-year increase of 39.80%; the basic earnings per share was RMB 0.10, representing a year-on-year increase of 42.86%. (I) Analysis of the performance 1. Analysis table of changes in the related items in profit statement and cash flow statementUnit: Yuan Currency: CNY Item Amount in the current period Amount in the same period of the last year Change (%)Operating revenue 32,933,263,802 30,191,792,987 9.08 Operating cost 28,480,385,794 26,145,431,986 8.93 Selling and distribution expenses 211,361,193 176,805,664 19.54General and administrative expenses 849,183,436 835,690,168 1.61Financial expenses 546,050,450 775,079,877 -29.55 Research and development expenditures 1,311,556,665 1,118,337,091 17.28Net cash flows from operating activities 5,184,184,446 2,568,564,023 101.83Net cash flows from investing activities -181,631,626 -83,719,029 N/ANet cash flows from financing activities -2,391,719,903 -4,723,159,537 N/ATaxes and surcharges 291,299,625 174,759,457 66.69 Investment income 67,909,400 204,359,358 -66.77 Income from fair value change -27,339,814 -276,050,580 N/A Assets impairment losses -428,844,200 -92,510,638 N/A The change in operating revenue was mainly due to the increase in project delivery of the Company.The change in operating cost was mainly due to the increase in operating cost as a result of the increase in operating revenue. The change in selling and distribution expenses was mainly due to the Company’s increased efforts in market expansion and marketing. The change in general and administrative expenses was mainly due to the increase in corporate consulting fees. The change in financial expenses was mainly due to lower interest expenses resulting from the decrease in the interest- bearing liabilities of the Company and the increase in exchange gains from fluctuations in the exchange rate of RMB against USD. Main business by product Year-on- year Year-on-year Year-on-year Operating Gross profit Product Operating cost change in operating change in change in gross revenue rate (%) revenue (%) operating cost (%) profit rate (%) Port machinery 21,236,864,182 17,769,268,798 16.33 2.44 2.07 +0.3Heavy-duty equipment 5,422,715,054 5,139,018,033 5.23 75.75 80.21 -2.35 Engineering construction projects 1,528,578,218 1,551,493,106 -1.50 -5.29 -4.12 -1.24Steel structure and related income 3,166,048,520 2,883,527,923 8.92 15.92 9.46 +5.38 Marine transport and others 1,388,086,251 1,064,259,854 23.33 -25.50 -29.12 +3.92 Main business by region Year-on- year Year-on-year Year-on-year Operating Gross profit Region Operating cost change in operating change in change in gross revenue rate (%) revenue (%) operating cost (%) profit rate (%) Chinese Mainland 18,330,998,550 16,450,665,191 10.26 15.64 20.55 -3.65 Chinese Mainland (export sales) 964,530,587 746,929,906 22.56 -0.37 -18.46 +17.18Europe 1,096,740,543 1,231,226,688 -12.26 25.05 42.05 -13.43 Asia (excluding Chinese Mainland) 6,029,644,681 4,952,941,475 17.86 -23.36 -26.71 +3.77 North America 2,386,479,118 2,039,827,384 14.53 9.40 5.40 +3.25 South America 1,183,625,912 901,491,572 23.84 97.22 108.39 -4.08 Africa 2,032,771,314 1,515,235,643 25.46 48.53 27.92 +12.01 Oceania 717,501,520 569,249,855 20.66 129.95 106.71 +8.92 ANNUAL REPORT 2023 ANNUAL REPORT 2023 ? Applicable Not Applicable Applicable ? Not Applicable Fulfillment of major sales contracts signed by the reporting period√ Applicable ? Not Applicable Unit: 100 million Yuan Currency: CNY Amount Explanation Total Total Amount Normally performed for abnormal Subject-matter of contract The opposite party contracted amount to be performed during the performance value performed performed or not reporting period of the contract Contract for ECT Terminal of East Chairman of Sri Lanka 2.8256 0.90268 0 1.92292 Yes Port, Sri Lanka Ports Authority General Contract for Intelligent Honggang Wharf Co., Handling System of No. 9-10 Ltd. in Guangxi Qinzhou Berth in Dalanping South Port Tariff Free Port Area 14.3734 11.60311 6.05375 2.77029 YesOperation Section, Dalanping Legal representative: Port Area, Qinzhou Port Wen Furong Procurement of double-trolley quayside container cranes for Phase I project of the Container Hu Chaoyang 12.93 3.879 0 9.051 Yes Terminal Project in East Operation Section of Yantian Port Area, Shenzhen Port (secondary) Note: Unit of contracted value of Sri Lanka Project: USD 100 millionFulfillment of major purchasing contracts signed by the reporting period? Applicable √ Not Applicable By product Proportion of the Proportion in Amount in the Year- Items of cost Amount in the one in the same Explanatory Product total cost in the same period of on-year structure current period period of the last notes current period (%) the last year change (%) year in total costs (%) Raw material cost, Normal operating Port machinery labor cost and 17,769,268,798 62.55 17,409,218,335 66.92 2.07fluctuations production cost Raw material cost, Heavy-duty Normal operating labor cost and 5,139,018,033 18.09 2,851,639,122 10.96 80.21equipment fluctuations production cost Engineering Raw material cost, Normal operating construction labor cost and 1,551,493,106 5.46 1,618,116,053 6.22 -4.12fluctuations projects production cost Steel structure Raw material cost, Normal operating and related labor cost and 2,883,527,923 10.15 2,634,320,687 10.13 9.46fluctuations income production cost Marine Raw material cost, Normal operating transport and labor cost and 1,064,259,854 3.75 1,501,571,151 5.77 -29.12fluctuations others production cost √ ? Applicable Not Applicable The sales to the top 5 customers were RMB 5,283,790,600, accounting for 16.04% of the total annual sales; the sales to the related parties among the top 5 customers were RMB 1,927,777,100, accounting for 5.85% of the total annual sales. Indicate whether sales to a single customer accounted for over 50% of the total sales, there was any new customer in the top five customers, or the Company heavily relied on a few number of customers during the reporting period. ? Applicable √ Not Applicable B. Main suppliers of the Company √ Applicable ? Not Applicable The purchases from the top 5 suppliers were RMB 4,324,267,200, accounting for 15.37% of total annual purchases; the purchases from the related parties among the top 5 suppliers were RMB 1,741,147,900, accounting for 6.19% of total annual purchases. Indicate whether sales to a single supplier accounted for over 50% of the total sales, there was any new supplier in the top five suppliers, or the Company heavily relied on a few number of suppliers during the reporting period. ? Applicable √ Not Applicable Other description None 3. Expenses √ Applicable ? Not Applicable The change in selling and distribution expenses was mainly due to the Company’s increased efforts in market expansion and marketing. The change in general and administrative expenses was mainly due to the increase in corporate consulting fees. The change in financial expenses was mainly due to lower interest expenses resulting from the decrease in the interest- bearing liabilities of the Company and the increase in exchange gains from fluctuations in the exchange rate of RMB against USD. The change in research and development expenditures was mainly due to the increase in the expensed expenditures for research and development projects of the Company. 4. R&D investments Applicable ? Not Applicable Unit: Yuan Current expensed R&D investments 1,311,556,665 Current capitalized R&D investments 0 Total R&D investments 1,311,556,665 ANNUAL REPORT 2023 ANNUAL REPORT 2023 Proportion of total R&D investments in operating revenue (%) 3.98Proportion of capitalized R&D investments (%) 0.00 Number of R&D employees in the Company 1,649 Proportion of number of R&D employees in the total employees of the Company (%) 19.86Educational structure of R&D employees Educational structure category Number Doctor 10 Master 272 Undergraduate 1,207 Junior College 138 Senior high school and below 22 Age structure of R&D employees Age structure category Number Under 30 (exclusive) 236 30-40 (inclusive of 30 and exclusive of 40) 588 40-50 (inclusive of 40 and exclusive of 50) 693 50-60 (inclusive of 50 and exclusive of 60) 132 60 and above 0 5. Cash flows √ Applicable ? Not Applicable The change in the net cash flows from operating activities was mainly due to the increase in cash received from the Company’s sale of goods and provision of services. The change in net cash flows from investing activities was mainly due to the increase in cash paid by the Company for the purchase and construction of fixed assets. The change in net cash flows from financing activities was mainly due to the repayment of loans by the Company. (II) Explanation for the significant changes in profits due to non-main business√ ? Applicable Not Applicable (III) Analysis of assets and liabilities √ Applicable ? Not Applicable Amount at Amount at the end amount at the end of amount at the end of Year- on- year Item the end of the of the previous Notes the current period in the previous period in change (%) current period period total assets (%) total assets (%) Monetary funds 5,105,078,436 6.02 2,397,047,713 3.06 112.97 Notes receivable 14,122,031 0.02 56,114,657 0.07 -74.83 Receivables financing 965,569,122 1.14 439,912,428 0.56 119.49Advances to suppliers 1,313,834,063 1.55 951,212,422 1.22 38.12Non-current assets due within 1,341,408,631 1.58 900,213,411 1.15 49.01 one year Other current assets 476,726,381 0.56 279,067,341 0.36 70.83Long-term receivables 1,457,182,459 1.72 2,402,265,565 3.07 -39.34Other equity instrument 104,859,374 0.12 73,475,619 0.09 42.71 investment Short-term borrowings 4,781,640,779 5.63 1,793,682,952 2.29 166.58Contract liabilities 19,230,649,196 22.66 13,348,150,197 17.07 44.07Tax payable 324,641,134 0.38 238,103,875 0.30 36.34 Deferred income tax liabilities 133,272,270 0.16 99,240,972 0.13 34.29Other non-current liabilities 247,185,330 0.29 181,805,207 0.23 35.96Other description Monetary funds increased mainly due to the increase in the Company’s advances received on contracts. Notes receivable decreased mainly due to the decrease in commercial acceptance bills received by the Company. Receivables financing increased mainly due to the increase in bank acceptance bills received by the Company. ’ Advances to suppliers increased mainly due to the increase in the Company s advance payment for purchases. Non-current assets due within one year increased mainly due to the increase in the Company’s long-term receivables due within one year. Other current assets increased mainly due to the increase in the Company’s input tax to be deducted. ’ Long-term receivables decreased mainly due to the decrease in receivables from the Company s Build-Transfer (BT) projects. Investment in other equity instruments increased mainly due to the Company’s additional new investment projects. Short-term borrowings increased mainly due to the increase in the short-term borrowings of the Company from banks. ’ Contract liabilities increased mainly due to the increase in the Company s advances received on contracts. Tax payable increased mainly due to the increase in value-added tax and surcharges payable resulting from the sound business development of the Company. ’ Deferred income tax liabilities increased mainly due to the increase in the Company s taxable temporary difference. Other non-current liabilities increased mainly due to the increase in the Company’s output tax to be written off. 2. Overseas assets √ Applicable ? Not Applicable (1). Asset size Including: overseas assets of 13,477,176,758 (Unit: Yuan, Currency: CNY), accounting for 16% of the total assets. (2). Related explanation for relatively high proportion of overseas assets√ ? Applicable Not Applicable ANNUAL REPORT 2023 ANNUAL REPORT 2023 Item Book value at the end of the period Reason for restrictionSpecial funds for overseas escrow account, deposits for letter of credit and letter Monetary funds 72,908,531 of guarantee etc. Fixed assets 2,447,188,251 Collateral for loan Long-term receivables 1,435,459,418 Hypothecation for loan Other non-current assets 3,616,427,706 Hypothecation for loanContract assets 146,326,607 Hypothecation for loan Accounts receivable 254,958,240 Hypothecation for loan Intangible assets 1,024,431,906 Hypothecation for loan 4. Other description ? Applicable √ Not Applicable (IV) Analysis of operational information of the industry √ Applicable ? Not Applicable In terms of port machinery business, the automated and intelligent upgrade of global ports brought new opportunities for port upgrading. However, the accelerated group integration of Chinese ports and the contest with other Chinese port machinery manufacturers led to increasingly fierce competition and imposed higher requirements for cost and innovation. Mobile machinery products enjoy a huge market space, featuring a high degree of standardization. In terms of offshore engineering business, the traditional oil and gas offshore engineering market is gradually recovering, and international oil prices will remain high in the medium and long term, benefiting the offshore equipment market. In terms of steel structure business, as the nationwide efforts to build green transportation infrastructure are intensified and Chinese urbanization is accelerating, the market demand for steel-structured bridges has increased, but the Chinese market shows a trend of low-price competition. In terms of new industries, a series of sectors where the Company operates have good market prospects, such as prefabricated buildings, photovoltaic power generation, elevator installation, and mechanical and electrical engineering. (V) Analysis of investment Unit: Yuan Currency: CNY Investment amount by the end of reporting period 2,773,273,393Changes in investment amount -172,127,215 Investment amount in the same period of the last year 2,945,400,608Change in investment amount (%) -6 the subject Progress Impact on Name of Statement Expected Lawsuit is mainly Investment Investment Shareholding Whether to Fund Partner (if Investmentterm as at the current Disclosure Disclosure invested Main business item (if earnings involved engaged in manner amount ratio consolidate source applicable) (if any) balance profit or date (if any) index (if any) entity applicable) (if any) or not investment sheet date loss business R&D, design, procurement, manufacturing, Zhenhua sales, maintenance, Shanghai See Completed Haitong transformation and Self- Yichui Extraordinary Newly the company December 7, Intelligent upgrading of, and Yes 4,000 80% Yes owned Machinery 0No Announcement established registration 2023 Equipment after-sales service funds Technology No. 2023-051 for procedures. Co., Ltd. for reach stackers, Co., Ltd. details stacker forklifts and their derivative products. Total / / / 4,000 / / / / / / / / / / 2. Significant non-equity investment √ Applicable ? Not Applicable Xiong’an Zhenhua Co., Ltd. (“Xiong’an Zhenhua”) is a wholly-owned subsidiary of the Company. To further optimize its resource allocation and better serve the development of primary business, the Company planned to reduce Xiong’an ’ ’ ’ Zhenhua s registered capital by RMB 1.9 billion. After the capital reduction, Xiong an Zhenhua s registered capital would be reduced from RMB 2 billion to RMB 0.1 billion. The capital reduction would not lead to the change in the ownership ’ structure of Xiong an Zhenhua, and the Company would still hold 100% of its stock equity. The above-mentioned matters were reviewed and approved at the 21st meeting of the 8th Board of Directors of the Company. See the relevant announcement (Extraordinary Announcement No. 2023-025) disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on June 8, 2023 for details. Xiong’an Zhenhua completed the registration of change of registered capital. After the capital reduction, its registered capital is RMB 0.1 billion, and the Company holds 100% of its stock equity.3. Financial assets measured at fair value √ Applicable ? Not Applicable Unit: Yuan Currency: CNY Accumulated fair Profit or loss on Impairment Amount Amount sold/ Asset Beginning value changes Other Ending changes in fair provision for purchased in redeemed in the class balance recognized in changes balance values for the period the period the period period equity Stock 869,045,064 -27,339,814 -129,548,853 712,156,397 Total 869,045,064 -27,339,814 -129,548,853 712,156,397 Securities investment √ Applicable ? Not Applicable Unit: Yuan Currency: CNY Accumulated Profit or loss Amount Profit or Initial Book value at fair value Amount Book value Securities Stock Stock Fund on changes in purchased loss on Accounting investment the beginning changes sold in the at the end of Variety code abbreviation source fair values for in the investments subjectcost of the period recognized period the period the period period in the period in equity Held-for- Self- trading Stock 06198 Qingdao Port 308,515,588 owned 348,072,750 21,560,783 -121,547,689 61,235,401 248,085,844 financial funds assets ANNUAL REPORT 2023 ANNUAL REPORT 2023 Accumulated Profit or loss Amount Profit or Initial Book value at fair value Amount Book value Securities Stock Stock Fund on changes in purchased loss on Accounting investment the beginning changes sold in the at the end of Variety code abbreviation source fair values for in the investments subjectcost of the period recognized period the period the period period in the period in equity Held-for- Self- trading Stock 03969 CRSC 617,854,000 owned 280,317,612 1,028,720 - 20,920,710 281,346,332financial funds assets Held-for- Self- trading Stock 300095 Huawu Stock 11,071,606 owned 199,652,466 -30,577,696 -893,074 17,010,720 168,181,696financial funds assets Held-for- COSCO Self- trading Stock 601919 SHIPPING 420,000,000 owned 40,132,120 -18,681,505 -6,908,090 21,654,242 14,542,525financial HOLDINGS funds assets Held-for- Self- Shenwan trading Stock 000166 200,000 owned 870,116 -670,116 -200,000 665,553 -Hongyuan financial funds assets Total / / 1,357,641,194 / 869,045,064 -27,339,814 -129,548,853 121,486,626 712,156,397 /Statement of securities investment ? Applicable √ Not Applicable Private equity investment √ ? Applicable Not Applicable Derivatives investment ? Applicable √ Not Applicable 4. Progress on the major assets restructuring during the reporting period? Applicable √ Not Applicable (VI) Sales of significant assets and equities √ Applicable ? Not Applicable 1. To maximize the value of shareholders and rationally allocate the asset structure, the Company and its subsidiaries （未完）  |