[年报]振华重工(600320):振华重工2023年年度报告（英文版）
)PMEJOH-JNJUFE $POTUSVDUJPO$PNQBOZ-UE 4IBSFIPMEJOHSBUJP 4IBSFIPMEJOHSBUJP 4IBSFIPMEJOHSBUJP4IBOHIBJ;IFOIVB)FBWZ*OEVTUSJFT$P -UE 6. Indicate whether the actual controller controls the Company via trust or other ways of assets management ? Applicable √ Not Applicable (III) Other information about the controlling shareholder and the actual controller? Applicable √ Not Applicable V. Indicate whether the cumulative number of shares put in pledge by the Company’s controlling shareholder or the largest shareholder and its acting-in-concert parties accounts for over 80% of their shareholdings in the Company ? Applicable √ Not Applicable Section VIII Preference Shares VI. Other corporate shareholders holding more than 10% √ Applicable ? Not Applicable Unit: Yuan Currency: CNY Company Name of corporate Date of Main business or management principal or legal Organization code Registered capital shareholder establishment activities representative China Communications General contracting of construction Construction Company Wang Tongzhou October 8, 2006 91110000710934369E 16,165,711,425 projects for ports, waterways, Ltd. highways, bridges, etc. CCCG (HK) Holding September 5, Investment management, project Peng Guangsheng / HKD 1,000 Limited 2017 investment, project financing CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of China Communications Description Construction Group Co., Ltd. VII. Particulars about restrictions on shareholding reduction? Applicable √ Not Applicable VIII. Specific implementation of share repurchases during the reporting period√ ? Applicable Not Applicable Section VIII Preference Shares ? Applicable √ Not Applicable ANNUAL REPORT 2023 Section IX Bonds I. Enterprise bonds, corporate bonds and debt financing instruments of non-financial enterprises √ Applicable ? Not Applicable (I) Enterprise bonds ? Applicable √ Not Applicable (II) Corporate bonds √ ? Applicable Not Applicable (III) Interbank bond market debt financing instrument of non-financial enterprises√ Applicable ? Not Applicable 1. Basic information of debt financing instruments of non-financial enterprisesUnit: Yuan Currency: CNY Investor Risk of Maturity Outstanding Interest Payment Trading eligibility Trading termination Name of bond Abbreviation Code Issue date Value date date balance rate (%) method venue arrangements mechanism of listing (if any) and trading Shanghai Zhenhua Heavy Industries 22 ZPMC Centralized Co., Ltd. 2022 MTNO01 book- August 22, August 24, December Aug.24 Interbank medium-term (sci-tech 102281893 500,000,000 3.22 entry and N/A2022 2022 31, 2099 every year market notes series I (sci- innovation centralized tech innovation note) placement note) Company’s response to the risk of termination of listing of bonds? Applicable √ Not Applicable Overdue bonds ? Applicable √ Not Applicable Interest payment and payment of bonds during the reporting period? Applicable √ Not Applicable 2. Triggering and execution of issuer or investor option clauses and investor protection clauses? Applicable √ Not Applicable 3. Intermediary agencies providing services for bond issue and duration businessSigned by the Agency name Office address Person to contact Contact number Accountants Bank of Communications Co., Ltd. No.188 Yincheng Middle Road, Shanghai - Xiong Han 021-38579212Industrial Bank Tower, 398 Middle Jiangbin Lin Chen, 010-89926551,Industrial Bank Co., Ltd. - Blvd., Taijiang District, Fuzhou, Fujian Cheng Qiuyun 021-6267777717/F, PICC Building, No.2 Jianguomenwai China Lianhe Credit Rating Co. Ltd. - Yang Heng 010-85679696Street, Chaoyang District, Beijing Section IX Bonds Signed by the Agency name Office address Person to contact Contact number Accountants 50/F, Shanghai World Financial Center, Ernst & Young Hua Ming LLP No. 100 Century Ave., Pudong New Area, - Gao Chong 021-22288888Shanghai 58F, Shanghai Tower, No. 501 Yincheng Shanghai Duan & Duan Law Firm Middle Road, Lujiazui Sub-district, Pudong - Wang Xiaobo 021-32230722New Area, Shanghai Changes in the above intermediary agencies ? Applicable √ Not Applicable 4. Use of raised funds at the end of the reporting period ? Applicable √ Not Applicable Progress and operating benefits of the raised funds used for construction projects? Applicable √ Not Applicable Change in the use of above funds raised from bonds during the reporting period? Applicable √ Not Applicable Other description ? Applicable √ Not Applicable 5. Adjustment of credit rating results √ ? Applicable Not Applicable Other description ? Applicable √ Not Applicable 6. Implementation and changes in guarantee, debt repayment plan and other debt repayment guarantee measures during the reporting period and their impacts ? Applicable √ Not Applicable 7. Other information on debt financing instruments of non-financial enterprises? Applicable √ Not Applicable (IV) The loss in the scope of consolidated financial statements during the reporting period exceeding 10% of the net assets as at the end of the prior year ? Applicable √ Not Applicable (V) Overdue interest-bearing debts other than bonds at the end of the reporting period? Applicable √ Not Applicable (VI) Violations of laws and regulations, the articles of association, the management system for information disclosure matters, as well as the impact of conditions agreed or promised in the bond prospectus on the rights and interests of bond investors during the reporting period? Applicable √ Not Applicable ANNUAL REPORT 2023 (VII) Main accounting data and financial indexes of the Company in recent 2 years as of the end of the reporting period √ Applicable ? Not Applicable Unit: Yuan Currency: CNY Main indexes 2023 2022 Year-on-year change (%) Reason of changeNet profit attributable to shareholders of the listed company after deducting the non-recurring 274,145,961 414,835,324 -33.91profits and losses Current ratio 0.94 1.07 -12.15 Quick ratio 0.41 0.33 24.24 Asset-liability ratio (%) 77.77 76.83 +0.94 EBITDA all debt ratio 0.05 0.05 0 Interest coverage ratio 1.81 1.56 16.03 Cash interest coverage ratio 5.48 2.92 87.67 EBITDA interest coverage ratio 3.22 2.74 17.52 Loan repayment ratio (%) 100 100 0 Interest coverage ratio (%) 100 100 0 II. Information about convertible corporate bonds ? Applicable √ Not Applicable Section X Financial Report Section X Financial Report I. Auditors’ Report √ Applicable ? Not Applicable Auditors' Report Ernst & Young (2024) SZ No. 70020902_B01 Shanghai Zhenhua Heavy Industries Co., Ltd. All shareholders of Shanghai Zhenhua Heavy Industries Co., Ltd.:(I) Opinion We have audited the financial statements of Shanghai Zhenhua Heavy Industries Co., Ltd. (hereinafter referred to as the “Company”), which comprise the consolidated balance sheet and the Company's balance sheet as at December 31, 2023, the consolidated income statement and the Company’s income statement, the consolidated statement of changes in shareholders’ equity and the Company’s statement of changes in owners’ equity and the consolidated statement of cash flows and the Company's statement of cash flows for the year then ended as well as the notes to the financial statements. In our opinion, the financial statements of the Company attached are prepared, in all material respects, in accordance with the Accounting Standards for Business Enterprises, and fairly present the consolidated financial position and the Company's financial position as at December 31, 2023 and the consolidated operating results and cash flows and the ’ Company s operating results and cash flows for the year then ended. (II) Basis for Our Opinions We conducted our audit in accordance with Chinese Certified Public Accountants Auditing Standards. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements ’ section of this auditors report. According to the Code of Ethics for Certified Public Accountants of China,we are independent of the Company, and we have fulfilled other responsibilities in the aspect of code of ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. (III) Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements for the current period. The response to these matters is based on the overall audit of the financial statements and the formation of audit opinions. We do not express our opinions on these matters separately. The following description of how our audit addressed the key audit matter is also against this background. We have fulfilled the responsibilities stated in “Responsibilities of Certified Public Accountant for Auditing of Financial Statement” in this report, including the responsibilities related to these key auditing matters. Correspondingly, our auditing work includes the implementation of the auditing procedure designed for dealing with the great misstatement risks of the financial statement to be evaluated. The results from the implementation of the auditing procedure by us, including the procedure to be implemented for the following key auditing matters, offers a foundation for releasing the auditing opinions of the financial statements. ANNUAL REPORT 2023 Key Audit Matters: How our audit addressed the key audit matter:1. Inventory depreciation reserves Shanghai Zhenhua Heavy Industries Co., Ltd. is mainly engaged in manufacturing the port container crane; in addition, it is also engaged in the manufacture of bulk handling machine, offshore heavy-duty machine and large-sized steel structure. Its inventories mainly include raw materials, outsourcing parts and components, products in the process and inventory Our procedure mainly included knowing and testing the validity of the goods. Since the production cycle of the products is relatively long, the control related to the provision of inventory depreciation reserves and net realizable value of the related inventory may fluctuate with the change the method of calculating the net realizable value of the Group. We also in the market demand, resulting in the inventory depreciation risks. The implemented the related auditing procedures over the inventory such as management sets aside the inventory depreciation reserves according supervision of inventory to verify whether the management had marked to the balance of the inventory cost and the net realizable value. The net the inventory with slow turnover and defectives and taken into full account realizable value is determined as per the estimated selling price of the in provision of inventory depreciation reserves. In addition, we obtained the inventory minus the cost, the estimated selling expenses and the related computation sheet of provision of inventory depreciation reserves from the taxes that may occur in the completion on the assumption that the management, rechecked the calculation method and result. As to the key management layer adopts a certain estimate and hypothesis in determining elements taken into consideration by the management in calculating the the net realizable value. In case of difference between the actual figure and net realizable value, including the estimated selling price and the cost that the originally estimated figure, the related balance will affect the book value may occur till completion, we evaluated the hypothesis and the estimates of the inventory and the depreciation loss in the estimated fluctuation.through analyzing the related historical data and comparing the after-date As of December 31, 2023, in the consolidated financial statements, the data of Shanghai Zhenhua Heavy Industries Co., Ltd. We also rechecked the balance of inventories was RMB 25.15 billion and the reserve for inventory disclosure of inventory depreciation reserves in financial statements.depreciation was RMB 0.87 billion; in the financial statements of the Company, the balance of inventories was RMB 22.59 billion and the reserve for inventory depreciation was RMB 0.87 billion. The accounting policy and other disclosures regarding the inventory are stated in Note III (10), Note III (31) and Note V (8) of the financial statement.2. Provision for bad debts of accounts receivable The accounts receivable of Shanghai Zhenhua Heavy Industries Co., Ltd. is mainly from the business contract on port machine and ocean engineering manufacturing. Since it involves large contracted value, long construction period, relatively complicated technical parameters, the implementation of the contract may be affected by the periodicity of the economic Our procedure mainly included the evaluation of the accounting estimate environment. The accounts receivable has certain risk in the recovery in case relating to the depreciation reserves, such as the financial status and credit of any dispute in contract or the industry is in recession. The provisions for rating of the counterpart; checked the account age of accounts receivable bad debts of accounts receivable are recognized on the basis of estimated and historical repayment record and evaluated whether the financial credit losses, involving major judgment and estimates. The management of problems of the counter party had effects on the recovery of the accounts analyzed the financial position of counter parties, guarantee acquired for receivable; for the accounts receivable evaluated based on the portfolio, accounts receivable, historical repayment records of accounts receivable, as we rechecked the management's setting of credit risk features portfolio, well as the credit rating and future economic situations of counter parties checked the key information such as account age and credit record of each for evaluating the credit risk of accounts receivable. portfolio by sampling, and rechecked the basis of management's evaluation As of December 31, 2023, in the consolidated financial statements, the of credit risk and expected credit loss amount based on the credit risk balance of accounts receivable was RMB 9.84 billion and the provision features portfolio, including testing historical default data and checking the for bad debts of accounts receivable was RMB 2.57 billion; in the financial actual credit loss in the current year; rechecked the disclosure of bad debt statements of the Company, the balance of accounts receivable was RMB provision for accounts receivable in financial statements. 22.02 billion and the provision for bad debts of accounts receivable was RMB 2.33 billion. The accounting policy and other disclosures regarding the provision for bad debts of accounts receivable are stated in Note III (9), Note III (31), Note V (4) and Note XIII (1) of the financial statements. Section X Financial Report Key Audit Matters: How our audit addressed the key audit matter:3. Revenue recognition Our procedure mainly included evaluating and testing the management’s Most of the revenue of Shanghai Zhenhua Heavy Industries Co., Ltd. internal control related to revenue recognition, selected the sales contract comes from the one of the construction contracts on the large-sized port with significant amount, checked the important contract terms related equipment, heavy equipment, steel structure and construction projects to revenue recognition, and evaluated the management’s accounting customized by the customer. judgment and estimate on performance obligations, revenue recognition Since the operating revenue is one of the key performance indicators of amount (including variable consideration) and the recognition at a certain Shanghai Zhenhua Heavy Industries Co., Ltd., there may be a risk of material time point or within a period of time. Through selecting the samples, we misstatement in whether it is recognized and presented in the appropriate verified whether the contract revenue recognized in the year conformed financial statement period, so we identify revenue recognition as a key audit to the revenue recognition conditions; implemented the cutoff check matter. procedure to validate the revenue was confirmed in the proper accounting In 2023, in the consolidated financial statements, the operating revenue was period. For the revenue recognized in a certain period of time, we evaluated RMB 32.93 billion; in the financial statements of the Company, the operating the judgment and estimate of the total contract cost and total processing revenue was RMB 28.45 billion. amount made by the management, and made sampling to calculate The accounting policy and other disclosures regarding the operating and check the income determined by the occurred contract cost and the revenue are stated in Note III (22), Note III (31), Note V (46) and Note XIII (4) expected total contract cost again; implemented the analysis procedure of the financial statements. against the changes in revenue and gross profit of various businesses; rechecked the disclosure of revenue recognition in financial statements.(IV) Other Information The management of Shanghai Zhenhua Heavy Industries Co., Ltd. shall be responsible for other information. The other ’ information comprises information of the annual report, but excludes the financial statements and our auditors report. Our opinion on the financial statements does not cover the other information, and we do not and will not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.’ If, based on the work we have performed on the other information that we obtained prior to the date of this auditors report, we conclude that there is a material misstatement of this other information, we are required to report that fact. In this regard, we have nothing to report. (V) Responsibilities of the Management and Those Charged with Governance for the Financial Statements The Management is responsible for preparing the financial statements in accordance with the requirements of Accounting Standards for Business Enterprises to achieve a fair presentation, and for designing, implementing and maintaining internal control that is necessary to ensure that the financial statements are free from material misstatements, whether due to frauds or errors. In preparing the financial statements, the Management is responsible for assessing the Company’s going-concern ability, disclosing the matters related to going concern (if applicable) and using the going-concern assumption, unless the Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Company's financial reporting process. (VI) Auditors’ Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.ANNUAL REPORT 2023 During the process of an audit conducted in accordance with audit standards, we exercise professional judgment and maintain professional scepticism throughout the audit. Meanwhile, we also implement the following work: (1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. (2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. (3) Evaluate the appropriateness of accounting policies used by and the reasonableness of accounting estimates and related disclosures made by the management. (4) Conclude on the appropriateness of the Management’s use of the going concern basis of accounting. Based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of Shanghai Zhenhua Heavy Industries Co., Ltd. to continue as a going concern. If we conclude that a material uncertainty exists, we are required to, in our auditors' report, draw attention of the users of statements to the related disclosures in the financial statements; if such disclosures are inadequate, we should modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause Shanghai Zhenhua Heavy Industries Co., Ltd. to cease to continue as a going concern. (5) Evaluate the overall presentation, structure and content (including the disclosures) of the financial statements, and evaluate whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. (6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the group audit, and bear full responsibility for our audit opinion.We communicate with those charged with governance regarding the planned scope and timing of the audit, significant audit findings and other matters, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them in regard to all relationships and other matters that may reasonably be thought to affect our independence, and related safeguards (if applicable).From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Section X Financial Report Ernst & Young Hua Ming LLP Certified Public Accountant of China: (Engagement Partner) Certified Public Accountant of China: Beijing, China March 28, 2024 ANNUAL REPORT 2023 II. Financial Statements Consolidated Balance Sheet As at December 31, 2023 Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unit: Yuan Currency: CNY Item Note As at December 31, 2023 As at December 31, 2022 Current assets: Monetary funds VII (1) 5,105,078,436 2,397,047,713 Settlement provisions Lending funds Held-for-trading financial assets VII (2) 720,594,675 877,483,342Derivative financial assets VII (3) Notes receivable VII (4) 14,122,031 56,114,657 Accounts receivable VII (5) 7,266,298,102 7,193,649,855 Receivables financing VII (7) 965,569,122 439,912,428 Advances to suppliers VII (8) 1,313,834,063 951,212,422 Premiums receivable Reinsurance accounts receivable Reserves for reinsurance contract receivable Other receivables VII (9) 1,245,727,441 995,545,297 Including: Interest receivable Dividend receivable 8,000,000 Financial assets purchased under agreements to resell Inventories VII (10) 24,281,402,176 21,513,379,348 Contract assets VII (6) 2,779,633,134 3,243,073,136 Assets held for sale VII (11) Non-current assets due within one year VII (12) 1,341,408,631 900,213,411Other current assets VII (13) 476,726,381 279,067,341 Total current assets 45,510,394,192 38,846,698,950 Non-current assets: Disbursement of loans and advances Debt investment VII (14) Other debt investments VII (15) Long-term receivables VII (16) 1,457,182,459 2,402,265,565 Long-term equity investments VII (17) 1,956,257,622 2,002,879,925Other equity instrument investment VII (18) 104,859,374 73,475,619Other non-current financial assets VII (19) Investment properties VII (20) 414,931,428 437,494,135 Fixed assets VII (21) 19,990,882,347 20,663,113,030 Construction in progress VII (22) 5,184,520,534 4,838,814,052Productive biological assets Oil and gas assets Right-of-use assets VII (25) 62,630,180 11,931,451 Intangible assets VII (26) 4,093,419,088 3,553,837,771 Development expenditures Goodwill VII (27) 270,172,367 268,245,693 Long-term deferred expenses VII (28) 1,055,983 409,870 Deferred income tax assets VII (29) 893,698,896 867,941,451 Other non-current assets VII (30) 4,924,571,621 4,246,061,211Total non-current assets 39,354,181,899 39,366,469,773 Total assets 84,864,576,091 78,213,168,723 Current liabilities: Short-term borrowings VII (32) 4,781,640,779 1,793,682,952 Borrowings from the Central Bank Borrowing funds Held-for-trading financial liabilities Section X Financial Report Item Note As at December 31, 2023 As at December 31, 2022 Derivative financial liabilities Notes payable VII (35) 5,533,470,582 5,401,258,897 Accounts payable VII (36) 8,616,059,138 7,255,123,334 Advances from customers Contract liabilities VII (38) 19,230,649,196 13,348,150,197 Financial assets sold for repurchase Deposits from customers and interbank Acting trading securities Acting underwriting securities Payroll payable VII (39) 40,097,393 38,074,154 Tax payable VII (40) 324,641,134 238,103,875 Other payables VII (41) 1,021,376,260 1,314,688,315 Including: Interest payable Dividends payable 6,593 6,593 Fees and commissions payable Dividend payable for reinsurance Liabilities held for sale Non-current liabilities due within a year VII (43) 8,650,700,389 6,961,445,218Other current liabilities VII (44) Total current liabilities 48,198,634,871 36,350,526,942 Non-current liabilities: Reserve fund for insurance contracts Long-term borrowings VII (45) 15,105,224,079 21,019,572,646 Bonds payable Including: preferred stock Perpetual bond Lease liabilities VII (47) 31,548,184 7,676,707 Long-term payables VII (48) 1,744,502,983 1,931,340,734 Long-term payroll payable Estimated liabilities VII (50) 168,217,597 168,241,316 Deferred income VII (51) 369,054,982 332,419,380 Deferred income tax liabilities VII (29) 133,272,270 99,240,972Other non-current liabilities VII (52) 247,185,330 181,805,207Total non-current liabilities 17,799,005,425 23,740,296,962 Total liabilities 65,997,640,296 60,090,823,904 ’ ’ Owners equity (or shareholders equity): Paid-in capital (or share capital) VII (53) 5,268,353,501 5,268,353,501Other equity instruments VII (54) 500,000,000 500,000,000 Including: preferred stock Perpetual bond 500,000,000 500,000,000 Capital reserves VII (55) 4,882,590,778 4,842,515,715 Less: treasury stock Other comprehensive income VII (57) 59,000,302 24,865,987 Special reserves VII (58) 10,525,094 2,945,560 Surplus reserves VII (59) 1,711,305,045 1,703,918,676 General risk preparation Undistributed profits VII (60) 3,324,778,074 2,825,870,678 Total owners' equities attributable to the owners of parent company 15,756,552,794 15,168,470,117Minority equity 3,110,383,001 2,953,874,702 Total owners’ equity (or shareholders' equity) 18,866,935,795 18,122,344,819’ Total liabilities and owners equity (or shareholders' equity) 84,864,576,091 78,213,168,723Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency: ANNUAL REPORT 2023 Balance Sheet of the Parent Company December 31, 2023 Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unit: Yuan Currency: CNY Item Note As at December 31, 2023 As at December 31, 2022 Current assets: Monetary funds 3,759,568,695 722,079,840 Held-for-trading financial assets 182,724,222 239,784,587 Derivative financial assets Notes receivable 56,114,657 Accounts receivable XIX (1) 19,685,759,151 18,014,241,050 Receivables financing 638,394,101 297,356,630 Advances to suppliers 1,204,312,330 6,860,717,286 Other receivables XIX (2) 3,373,418,359 1,680,563,614 Including: Interest receivable Dividend receivable 315,789,096 Inventories 21,719,656,262 18,530,057,990 Contract assets 1,854,052,360 1,867,489,992 Assets held for sale Non-current assets due within one year Other current assets 305,040,708 175,036,344 Total current assets 52,722,926,188 48,443,441,990 Non-current assets: Debt investment Other debt investments Long-term receivables Long-term equity investments XIX (3) 9,456,761,435 9,389,579,244Other equity instrument investment 104,859,374 73,475,619 Other non-current financial assets Investment properties 414,931,428 437,494,135 Fixed assets 3,741,477,947 3,865,130,627 Construction in progress 916,537,474 647,322,776 Productive biological assets Oil and gas assets Right-of-use assets 15,253,224 44,765 Intangible assets 1,393,384,863 1,432,796,201 Development expenditures Goodwill Long-term deferred expenses 124,771 Deferred income tax assets 871,331,750 833,341,377 Other non-current assets 823,808,086 530,196,047 Total non-current assets 17,738,470,352 17,209,380,791 Total assets 70,461,396,540 65,652,822,781 Current liabilities: Short-term borrowings 4,091,640,779 1,269,182,952 Held-for-trading financial liabilities Derivative financial liabilities Notes payable 5,199,186,754 5,252,294,408 Accounts payable 5,166,087,023 3,610,603,937 Advances from customers Section X Financial Report Item Note As at December 31, 2023 As at December 31, 2022 Contract liabilities 18,367,419,237 12,525,059,840 Payroll payable 29,378,564 29,189,818 Tax payable 140,507,385 82,609,138 Other payables 1,384,628,567 2,716,399,244 Including: Interest payable Dividends payable 6,593 6,593 Liabilities held for sale Non-current liabilities due within one year 8,198,412,536 6,152,492,930Other current liabilities Total current liabilities 42,577,260,845 31,637,832,267 Non-current liabilities: Long-term borrowings 12,250,338,715 18,447,465,656 Bonds payable Including: preferred stock Perpetual bond Lease liabilities 8,137,322 Long-term payables Long-term payroll payable Estimated liabilities 147,187,314 154,863,743 Deferred income 267,369,648 257,656,046 Deferred income tax liabilities Other non-current liabilities 5,852,338 2,321,173 Total non-current liabilities 12,678,885,337 18,862,306,618 Total liabilities 55,256,146,182 50,500,138,885 Owners’ equity (or shareholders’ equity): Paid-in capital (or share capital) 5,268,353,501 5,268,353,501Other equity instruments 500,000,000 500,000,000 Including: preferred stock Perpetual bond 500,000,000 500,000,000 Capital reserves 4,894,907,348 4,914,468,683 Less: treasury stock Other comprehensive income 31,409,336 20,882,527 Special reserves 1,422,294 Surplus reserves 1,710,796,772 1,703,410,403 Undistributed profits 2,798,361,107 2,745,568,782 Total owners’ equity (or shareholders' equity) 15,205,250,358 15,152,683,896’ Total liabilities and owners equity (or shareholders' equity) 70,461,396,540 65,652,822,781Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency: ANNUAL REPORT 2023 Consolidated Income Statement January to December in 2023 Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unit: Yuan Currency: CNY Item Note 2023 2022 I. Total operating revenue 32,933,263,802 30,191,792,987 Including: Operating revenue VII (61) 32,933,263,802 30,191,792,987Interest income Premiums earned Fee and commission income II. Total operating cost 31,689,837,163 29,226,104,243 Including: operating costs VII (61) 28,480,385,794 26,145,431,986Interest expenses Fee and commission expense Surrender value Net amount of compensation payout Net reserves for insurance liabilities Policy holder dividend expense Reinsurance expenses Taxes and surcharges VII (62) 291,299,625 174,759,457 Selling and distribution expenses VII (63) 211,361,193 176,805,664General and administrative expenses VII (64) 849,183,436 835,690,168Research and development expenditures VII (65) 1,311,556,665 1,118,337,091Financial expenses VII (66) 546,050,450 775,079,877 Including: interest expenses 965,865,812 1,038,321,065 Interest income 429,793,598 413,595,714 Plus: other incomes VII (67) 99,289,337 104,014,204 Income from investment (loss expressed with “-”) VII (68) 67,909,400 204,359,358Including: Income from investment of joint venture and cooperative enterprise 78,028,096 170,402,945 Income from derecognition of financial assets measured at amortized cost -115,312,416 -20,135,378Exchange gain (loss expressed with “-”) Net exposure hedging gain (loss expressed with “-”) Income from fair value changes (loss expressed with “-”) VII (70) -27,339,814 -276,050,580Credit impairment losses (loss expressed with “-”) VII (71) -276,310,095 -346,156,434Assets impairment losses (loss expressed with “-”) VII (72) -428,844,200 -92,510,638Income from disposal of assets (loss expressed with “-”) VII (73) 79,038,662 66,186,622III. Operating profits (loss expressed with “-”) 757,169,929 625,531,276Plus: non-operating income VII (74) 30,243,969 32,139,607 Less: non-operating expenditure VII (75) 2,256,229 2,436,095IV. Total profits (total loss expressed with “-”) 785,157,669 655,234,788Less: income tax expenses VII (76) 138,613,040 57,672,440 V. Net profits (net loss expressed with “-”) 646,544,629 597,562,348(I) Classified by business continuity 1. Net profits from ongoing operation (net loss expressed with “-”) 646,544,629 597,562,3482. Net profits from discontinuing operation (net loss expressed with “-”)(II) Classified by ownership 1. Net profit attributable to the shareholders of parent company (net loss expressed with “-”) 519,978,765 371,937,232 2. Minority interests (net loss expressed with “-”) 126,565,864 225,625,116Section X Financial Report Item Note 2023 2022 VI. Net of tax of other comprehensive income VII (77) 45,425,366 122,166,570(I) Net amount of after-tax other comprehensive income attributable to the owners of the 34,134,315 94,221,045 parent company 1. Other comprehensive income that can't be reclassified into profit and loss 10,704,692 6,116,237(1) Remeasure the variation of net indebtedness or net asset of defined benefit plan(2) Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method (3) Fair value change of other equity instrument investments 10,704,692 6,116,237(4) Fair value change of enterprise credit risks 2. Other comprehensive income that will be reclassified into profit and loss 23,429,623 88,104,808(1) Other comprehensive income that will be reclassified into profit and loss in the invested -718,408 20,743,893 enterprise under equity method (2) Fair value change of other debt investments (3) Amount of financial assets reclassified into other comprehensive income(4) Provision for credit impairment of other debt investments(5) Cash flow hedging reserve (6) Translation reserve 24,148,031 67,360,915 (7) Others (II) Net of tax of other comprehensive income attributable to the minority shareholders 11,291,051 27,945,525 VII. Total comprehensive income 691,969,995 719,728,918 (I) Total comprehensive income belonging to parent company 554,113,080 466,158,277(II) Total comprehensive income belonging to minority shareholders 137,856,915 253,570,641VIII. Earnings per share: (I) Basic earnings per share (Yuan/share) 0.10 0.07 (II) Diluted earnings per share (Yuan/share) 0.10 0.07 In case of business combination under common control in current period, the net profit realized by the combined party before combination was RMB 0, and the net profit realized by the combined party in the previous period was RMB 0. Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency: ANNUAL REPORT 2023 Income Statement of Parent Company January to December in 2023 Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unit: Yuan Currency: CNY Item Note 2023 2022 I. Operating revenue XIX (4) 28,449,047,821 26,167,200,140 Less: operating costs XIX (4) 25,824,140,425 23,715,294,401 Taxes and surcharges 215,477,341 99,236,620 Selling and distribution expenses 155,665,223 155,895,902 General and administrative expenses 445,853,080 440,171,981 Research and development expenditures 892,691,771 813,395,559Financial expenses 454,757,877 884,406,720 Including: interest expenses 712,367,582 799,727,505 Interest income 81,538,834 41,733,102 Plus: other incomes 38,130,119 75,037,357 Income from investment (loss expressed with “-”) XIX (5) 191,810,563 604,019,489Including: Income from investment of joint venture and cooperative enterprise 77,665,390 170,768,840 Income from derecognition of financial assets measured at amortized cost -115,312,416 -20,135,378Net exposure hedging gain (loss expressed with “-”) Income from fair value changes (loss expressed with “-”) -49,259,201 -253,335,714Credit impairment losses (loss expressed with “-”) -248,116,095 -274,770,970Assets impairment losses (loss expressed with “-”) -398,239,554 -71,850,880Income from disposal of assets (loss expressed with “-”) 30,720,459 4,769,913II. Operating profits (loss expressed with “-”) 25,508,395 142,668,152Plus: non-operating income 13,763,655 12,598,476 Less: non-operating expenditure 1,660,230 1,097,149 III. Total profits (total loss expressed with “-”) 37,611,820 154,169,479Less: income tax expenses -36,251,874 -92,432,319 “ ” IV. Net profits (loss expressed with - ) 73,863,694 246,601,798“ ” (I) Net profits from ongoing operation (net loss expressed with - ) 73,863,694 246,601,798“ ” (II) Net profits from discontinuing operation (net loss expressed with - )V. Net of tax of other comprehensive income 10,526,809 29,497,087(I) Other comprehensive income that can't be reclassified into profit and loss 10,704,692 6,116,2371. Remeasure the variation of net indebtedness or net asset of defined benefit plan2. Other comprehensive income that can't be reclassified into profit and loss in the invested enterprise under equity method 3. Fair value change of other equity instrument investments 10,704,692 6,116,2374. Fair value change of enterprise credit risks (II) Other comprehensive income that will be reclassified into profit and loss -177,883 23,380,8501. Other comprehensive income that will be reclassified into profit and loss in the invested -718,408 20,743,893 enterprise under equity method 2. Fair value change of other debt investments 3. Amount of financial assets reclassified into other comprehensive income4. Provision for credit impairment of other debt investments5. Cash flow hedging reserve 6. Translation reserve 540,525 2,636,957 7. Others VI. Total comprehensive income 84,390,503 276,098,885 VII. Earnings per share: (I) Basic earnings per share (Yuan/share) (II) Diluted earnings per share (Yuan/share) Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency: Section X Financial Report Consolidated Statement of Cash Flows January to December in 2023 Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unit: Yuan Currency: CNY Item Note 2023 2022 I. Cash flow from operating activities: Cash from selling commodities or offering labor 38,828,500,433 25,267,511,264Net increase of customer deposit and deposit from other banksNet increase of borrowings from central bank Net increase of borrowing funds from other financial institutionsCash from obtaining original insurance contract premium Net cash received from reinsurance business Net increase in the deposits and investment of insured Cash from interest, handling charges and commissions Net increase of borrowing funds Net increase of repurchase of business funds Net cash from acting trading securities Refund of tax and levies 416,830,589 855,636,866 Other cash received related to operating activities 676,958,575 244,003,096Subtotal cash inflows from operating activities 39,922,289,597 26,367,151,226Cash paid for goods purchased and services received 30,775,739,275 19,831,977,453Net increase of customer loans and advances Net increase of amount due from central bank and interbank Cash paid for original insurance contract claims payment Net increase of lending funds Cash paid for interest, handling charges and commissions Cash paid for policy dividend Cash paid to and for employees 2,508,297,766 2,574,314,378 Taxes and fees paid 697,045,919 594,993,030 Other cash paid related to operating activities 757,022,191 797,302,342Subtotal cash outflows from operating activities 34,738,105,151 23,798,587,203Net cash flows from operating activities 5,184,184,446 2,568,564,023II. Cash flows from investment activities: Cash from investment withdrawal 129,548,854 17,165,758 Cash from investment income 234,193,072 159,044,219 Net cash received from disposal of fixed assets, intangible assets and other long-term 105,378,156 19,391,609 assets Net cash from disposal of subsidiaries and other business unitsOther cash received related to investment activities 114,994,970 209,457,444Subtotal cash inflows from investment activities 584,115,052 405,059,030Cash paid for purchase of fixed assets, intangible assets and other long-term assets 746,956,678 488,778,059 Cash paid for investments 18,790,000 Net increase in hypothecated loan Net cash paid for obtaining subsidiaries and other business unitsOther cash paid related to investment activities Subtotal cash outflows from investment activities 765,746,678 488,778,059Net cash flow from investment activities -181,631,626 -83,719,029ANNUAL REPORT 2023 Item Note 2023 2022 III. Cash flows from financing activities: Cash from absorption of investments 170,101,094 98,327,900 Including: cash received from subsidies’ absorption of minority shareholders’ 170,101,094 98,327,900 investment Cash received from borrowings 26,666,299,568 38,626,275,738 Other cash received related to financing activities 1,134,318,331 618,107,748Cash received from issuance of other equity instruments 500,000,000Cash received from issuance of bonds 500,000,000 Subtotal cash inflows from financing activities 27,970,718,993 40,342,711,386Cash repayments of amounts borrowed 27,644,066,754 42,832,240,800Cash paid for distribution of dividends, profits or interest expenses 1,080,107,143 1,395,285,252Including: dividends and profits paid by subsidiaries to minority shareholders 93,141,010 58,000,000 Other cash paid related to financing activities 1,638,264,999 838,344,871Subtotal cash outflows from financing activities 30,362,438,896 45,065,870,923Net cash flows from financing activities -2,391,719,903 -4,723,159,537IV. Impact of exchange rate movements on cash and cash equivalents 46,235,551 163,578,103V. Net increase of cash and cash equivalents 2,657,068,468 -2,074,736,440Plus: beginning balance of cash and cash equivalents 2,375,101,437 4,449,837,877VI. Ending balance of cash and cash equivalents 5,032,169,905 2,375,101,437Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency: Section X Financial Report Statement of Cash Flows of the Parent Company January to December in 2023 Prepared by: Shanghai Zhenhua Heavy Industries Co., Ltd. Unit: Yuan Currency: CNY Item Note 2023 2022 I. Cash flow from operating activities: Cash from selling commodities or offering labor 31,008,944,150 22,387,866,565Refund of tax and levies 300,080,487 635,424,765 Other cash received related to operating activities 636,768,375 225,294,772Subtotal cash inflows from operating activities 31,945,793,012 23,248,586,102Cash paid for goods purchased and services received 25,004,851,532 21,040,995,998Cash paid to and for employees 1,351,747,671 1,321,000,912 Taxes and fees paid 207,703,416 123,242,978 Other cash paid related to operating activities 375,422,856 381,273,867Subtotal cash outflows from operating activities 26,939,725,475 22,866,513,755Net cash flows from operating activities 5,006,067,537 382,072,347II. Cash flows from investment activities: Cash from investment withdrawal 7,801,165 17,165,758（未完）  |