Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share

Shanghai Zhenhua Heavy Industries Co. Ltd.Annual Report 2024Section I Definitions .............02

Section II Company Profile and Principal Financial Indexes .........03

Section III Management Discussion and Analysis.......07

Section IV Corporate Governance .....................22

Section V Environmental and Social Responsibility ...40

Section VI Important Events .........................48

Section VII Changes in Shares and Shareholders' Si...61

Section 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.Important Notice

Important Notice

I. The Board of Directors Board of Supervisors directors supervisors and senior executives of the Company

hereby guarantee the truthfulness accuracy and completeness of the contents carried in this annual report

guarantee no false record serious misleading statement or great omission carried in this annual report and

guarantee to assume the legal responsibilities jointly and separately.II. All directors of the Company are present at the board meeting.III. Ernst & Young Hua Ming LLP issued a standard audit report with unqualified opinions for the Company.IV. You Ruikai chairman of the Company Li Zhen person in charge of accounting work and Wang Minfei

person in charge of accounting agency (accountant in charge) hereby declare that the financial statements

in this annual report are authentic accurate and complete.V. Proposal for profit distribution or common reserves capitalizing during the reporting period reviewed by

the board of directors

As audited by Ernst & Young Hua Ming LLP the Company achieved a net profit attributable to the owners of the parent

company of approximately RMB 534 million in 2024. As at December 31 2024 the undistributed profit of the parent company

was approximately RMB 2.901 billion. Based on the Company’s performance in 2024 a profit distribution proposal for 2024 has

been proposed: profits will be distributed based on the total share capital registered on the record date for the implementation

of the equity distribution and a cash dividend of RMB 0.55 (tax included) per 10 shares would be distributed to all shareholders.As of December 31 2024 the Company’s total share capital consisted of 5268353501 shares. When calculated on this basis the

total cash dividend to be distributed will be RMB 289759442.56 (tax included). The Company will not convert capital reserve

into share capital or grant bonus shares for 2024. The profit distribution proposal has yet to be submitted to the 2024 Annual

General Meeting of Shareholders for consideration and approval.VI. Risk declaration of forward-looking statements

√ Applicable Not applicable

The forward-looking descriptions of future plans and development strategies covered in this report do not constitute

substantial commitments by the Company to investors and investors should be aware of the investment risks.VII. Does the Company have non-operating funds occupied by the holding shareholder and its related

parties

No

VIII. Does the Company provide the external guarantees in breach of the stipulated decision- making

procedure

No

IX. Whether more than half of the directors cannot guarantee the authenticity accuracy and completeness

of the annual report disclosed by the Company

No

X. Major RiskWarning

The company has described the related potential risks in this annual report. Investors may pay attention to the same. Please

refer to “Management Discussion and Analysis” and related chapters for the risks the company may be confronted with in the

future development.XI. Others

Applicable √ Not applicableANNUAL REPORT 2024

Section I Definitions

I. Definitions

The terms used in this report shall be defined as follows unless otherwise specified:

Definition of common terms

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 The period from January 1 2024 to December 31 2024Section II Company Profile and Principal Financial Indexes

Section II Company Profile and Principal Financial Indexes

I. Company Information

Company name in Chinese ( )

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 IR@ZPMC.COM

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 IR@ZPMC.COM

IV. Information disclosure and placement location

Shanghai Securities News www.cnstock.com

Media and websites where this Report is disclosed

China Securities Journal www.cs.com.cn

Stock exchange website for disclosure of the annual report http://www.sse.com.cn

Placement location of the annual report Office of the board of directors

V. Stock information

Stock Information

Stock type Stock exchange Stock abbreviation Stock code Stock abbreviation before change

A-share Shanghai Stock Exchange (SSE) Zhenhua Heavy 600320 ZPMC Industries

B-share Shanghai Stock Exchange (SSE) Zhenhua B-share 900947 —

VI. Other relevant information

Name Ernst & Young Hua Ming LLP

Public accounting firm engaged by Room 01-12 Floor 17th Ernst & Young Tower Oriental Plaza No.1 East Changan

Office address

the Company (domestic) Street Dongcheng District Beijing

Signed by the Accountants Gao Chong Huang HongweiANNUAL REPORT 2024

VII. Main accounting data and financial indexes in recent three years

(I) Main accounting data

Unit: Yuan Currency: CNY

Year-on-year

Main accounting data 2024 2023 2022

change (%)

Operating revenue 34456420181 32933263802 4.62 30191792987

Net profit attributable to the shareholders of the listed company 533524077 519978765 2.60 371937232

Net profit attributable to the shareholders of the listed company

211097452274145961-23.00414835324

after deducting the non-recurring profits and losses

Net cash flows from operating activities 5275878878 5184184446 1.77 2568564023

December 31 December 31 Year-on-year December 31

2024 2023 change (%) 2022

Net assets attributable to the shareholders of the listed company 15867533500 15756552794 0.70 15168470117

Total assets 85767463201 84864576091 1.06 78213168723

(II) Major financial indexes

Year-on-year

Major financial indexes 2024 2023 2022

change (%)

Basic earnings per share (RMB/share) 0.10 0.10 0 0.07

Diluted earnings per share (RMB/share) 0.10 0.10 0 0.07

Basic earnings per share after deducting non- recurring profits and

0.040.05-20.000.07

losses (RMB/share)

Weighted average rate of return on net assets (%) 3.39 3.37 0.02 2.39

Weighted average ROE after deducting non-recurring profits and

1.291.74-0.452.68

losses (%)

Explanations about the main accounting data and financial indexes in the past 3 years as at the end of the reporting

period

Applicable √ Not applicable

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

(III) Explanation for differences between the domestic and foreign accounting standards:

Applicable √ Not applicableSection II Company Profile and Principal Financial Indexes

IX. Main financial data in 2024 by quarter

Unit: Yuan Currency: CNY

Q1 Q2 Q3 Q4

(Jan. to Mar.) (Apr. to Jun.) (Jul. to Sep.) (Oct. to Dec.)

Operating revenue 8444849315 8784422509 8133301943 9093846414

Net profit attributable to the shareholders of the listed company 169855818 136629697 126377874 100660688

Net profit attributable to the shareholders of the listed company

93776916226128671549266879215001

after deducting the non-recurring profits and losses

Net cash flows from operating activities 177492648 1033954004 851310807 3213121419

Explanations 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 2024 2023 2022

(if applicable)

Profit or loss from disposal of non-current assets including the write-off

958095217903866266091456

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 to 154291909 107480822 106415947

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 of financial

12261969594482602-214877284

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 separate

37819017

impairment test

Profit generated when the Company’s investment cost in acquiring the

subsidiary affiliated company and joint venture is less than the fair value 1914106

of the recognizable net assets of the invested unit at the time of acquiring

Other non-operating revenue and expenses except for the above-

185838241979625527301769

mentioned items

Other profit or loss items that conform to the definition of non- recurring

profit or loss

Less: Affected amount of income tax 74475101 45161118 11561380

Affected amount of minority equity (after tax) 34136346 9804419 16268600

Total 322426625 245832804 -42898092Explanations should be provided to the items not listed in the “Explanatory Announcement on Information Disclosure ofCompanies Offering Securities to the Public No. 1 - Non-recurring Profit or Loss” but identified as non-recurring profit orloss items with significant amount by the Company and the non-recurring profit or loss items listed in the “ExplanatoryAnnouncement on Information Disclosure of Companies Offering Securities to the Public No. 1 - Non-recurring Profit orLoss” but defined as recurring profit or loss items by the Company.Applicable √ Not applicableANNUAL REPORT 2024

XI. Items measured at fair value

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Project Opening balance Closing balance Movement in 2024 Impact on profit or loss for 2024

Qingdao Port International Co. Ltd. 248085844 0 -248085844 29029615

China Railway Signal & Communication

281346332395445574114099242109003173

Corporation Limited

Jiangxi Huawu Brake Co. Ltd. 168181696 138755008 -29426688 -22969165

COSCO Shipping Holdings Co. Ltd. 14542525 0 -14542525 3142201

Hunan Fengri Power & Electric Co. Ltd. 29951235 33199200 3247965 0

CCCC Highway Bridges National Engineering

2498699913179019-118079800

Research Centre Co. Ltd.CCCC National Engineering Research Center

of Dredging Technology and Equipment Co. 10440495 7937621 -2502874 0

Ltd.Shenyang Weichen Crane Equipment Co.

6617653905810024404470

Ltd.Ningbo Weilong Port Machinery Co. Ltd. 15333177 24208224 8875047 1602665

Shanghai Longchang Lifting Equipment Co.

73981573981500

Ltd.Jiangsu Zhangjinggao Bridge Co. Ltd. 16790000 75410000 58620000 0

Nezha Smart Technology (Shanghai) Co. Ltd. 0 26798909 26798909 0

Total 817015771 724731470 -92284301 119808489

XII. Others

Applicable √ Not applicableSection III Management Discussion and Analysis

Section III Management Discussion and Analysis

I. Discussion and analysis of the performance

In 2024 the company adhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as its

guiding ideology thoroughly studied and put into action the guiding principles from the 20th National Congress of the

Communist Party of China (CPC) and the Second and Third Plenary Sessions of the 20th CPC Central Committee and fully

implemented the decisions and plans of the State-owned Assets Supervision and Administration Commission of the State

Council by focusing on the requirements of the “Year of High-quality Development and Improvement” closely following

its “123456” development strategy pursuing the “Six-Zero” objectives and striving to deliver further outcomes in high-

quality development.During the reporting period the Company recorded operating revenue of approximately RMB 34.456 billion representing

a year-on-year increase of 4.62%; the net profit attributable to the parent company was approximately RMB 534 million

representing a year-on-year increase of 2.60%. The total value of contracts awarded in the port machinery business

was USD 4.001 billion. The total value of contracts awarded in the marine engineering and steel structure businesses

amounted to USD 2.083 billion of which the steel structure business accounted for USD 878 million.During the reporting period the company made remarkable achievements in market expansion continuously enhanced

its contract fulfillment capabilities steadily improved operational quality and efficiency accelerated digital transformation

optimized its governance system maintained a positive trend in development safety and consistently strengthened

Party building efforts. Firstly there was steady progress in the main business market with comprehensive improvement

of operating mechanisms and systems and the preliminary formation of a customer service system. The company’s

position in the port machinery market was further consolidated while its quay cranes and other port machinery products

continued to lead the industry. Multiple sets of high-end marine engineering equipment were successively delivered to

customers. Its steel structure business gained further presence in the market. A customer service center was established

and customer satisfaction was on a constant rise. Secondly continuous improvement in contract execution steady

advancement of lean production and persistent reinforcement of subcontractor control were seen. Thirdly internal

synergy effects became more prominent with steady improvements in budget management cost management capital

management and supply chain management capabilities. Fourthly the company further optimized its planning for

innovation in science and technology which led to abundant accomplishments and expedited digital transformation

and intelligent reform. A green and low-carbon research institute was established obtaining the first carbon footprint

verification certificate for port machinery products in the industry. The active motion compensated gangway for offshore

wind power maintenance vessels won the special award for first-set breakthroughs in high-end intelligent equipment in

Shanghai. Two levels of digital production and operation centers were built and operated in conjunction achieving full-

process and all-element monitoring of projects. Fifthly key reform tasks including adaptive organizational construction

tertiary company construction and management system enhancement were comprehensively promoted. The company

continuously strengthened headquarters construction to improve its operational efficiency and management formulated

specialized positioning plans and practiced professional differentiated and tailored authorization across its affiliated

enterprises. A special management system working group was set up to fully review management systems and processes

and to formulate measures focusing on improvement. Sixthly the company upgraded management in aspects of

safety quality environmental protection and exposure to compliance risks. For energy conservation and environmental

protection it initiated a three-year action plan improved contract management and constantly refined relevant rules and

regulations. Shanghai Zhenhua Heavy Industries Co. Ltd. Changxing Branch was rated as a “Green Factory” in Shanghai.Seventhly the leading role of Party building continued with intensified efforts in talent team building and execution

capacity development. The company launched a special project to enhance the quality and efficiency of primary-level

Party building placed more emphasis on introduction and cultivation of talents in science and technology built a

competency model for project management personnel and enhanced supervision management to promote active and

effective implementation of its important resolutions.ANNUAL REPORT 2024

II. Industrial situation of the Company during the reporting period

Macroscopically China’s economy maintained overall stability with steady progress new productive forces advanced

steadily and the manufacturing sector played an increasingly solid role as the “ballast” in building a modern industrial

system. China’s manufacturing industry was accelerating its transformation toward high-end intelligent and green

development. However the international situation remained complex and volatile with escalating geopolitical tensions

disruptions in global supply and industrial chains accelerated formation of green trade barriers persistent shortfalls in

domestic demand and growing urgency for industrial transformation and upgrading.In terms of industries the port machinery market saw limited overall increment for traditional port machinery markets

and increasingly fierce competition between domestic and foreign enterprises. There was an increasing demand for

construction and renovation of automated terminals in large international ports. Countries along the Belt and Road route

showed a strong demand for port equipment. As China accelerated construction of smart ports and smart waterways and

continuously encouraged construction for inland waterway transportation the demand for whole machine purchases

and automation equipment was gradually released creating opportunities for port upgrades and transformations. In

the offshore engineering market there were signs of recovery. Changes in the global energy landscape brought new

opportunities accompanied by a strong demand for marine oil and gas clean energy equipment and considerable

market space for offshore engineering equipment. Offshore support vessels experienced stabilized recovery of

transactions while the demand for floating production facilities remained steady. The rapid development of the offshore

wind power industry led to a growing demand for related offshore engineering equipment for offshore wind power

construction and maintenance such as wind turbine installation vessels and wind power maintenance vessels. In the steel

structure market the significant reduction of domestic infrastructure projects invested by local governments concurred

with a slight decline in the highway and railway bridge markets. Driven by the “dual carbon” goals green low-carbon and

environmentally friendly practices represented the mainstream trend in the industry and the domestic steel structure

market still held significant development potential.III. Business of the Company during the reporting period

The Company is a well-known heavy equipment manufacturer and a state-owned company listed on A and B shares

and its holding company is China Communications Construction Group Co. Ltd. which is listed in Fortune Global 500.Headquartered in Shanghai with several production bases in Shanghai and Suzhou and several overseas branches

worldwide the Company has more than twenty 60000t to 100000t complete transport vessels which can transport

complete products to the world. At present the products of the Company have been successfully sold to 108 countries

and regions in the world.The company adhered to the vision of building a globally competitive technology-driven management-oriented

quality-focused world-class equipment manufacturing enterprise primarily engaging in three main businesses i.e. port

machinery offshore engineering and steel structures. It was fully committed to strengthening strategy pushing reforms

seeking innovation preventing risks and improving efficiency and quality and comprehensively completed its annual

key objectives with respect to promotion of quality efficiency and brand influence.During the reporting period the company maintained its advantages in the port machinery business. The quay crane

products continued to hold the leading position in global market share. A range of new cooperation projects were

signed with key domestic and international customers. The first smart port in South America – Chancay Port in Peru the

construction of which the company had participated in became successfully open. New breakthroughs were made in

inland river business.The offshore engineering business developed steadily. The company successively delivered core offshore engineering

equipment including China’s first LNG dual-fuel powered trailing suction hopper dredger of the world’s largest

capacity – “Xin Hai Xun” the world’s most advanced saturation diving support vessel (DSV) and China’s first dual-type

multi-functional pipe-laying vessel JSD6000 among which “Xin Hai Xun” was selected as one of the top ten national

heavyweights by the State-owned Assets Supervision and Administration Commission of the State Council.The steel structure business continued to grow. A stable development trend was observed in the business of bridge steel

structures. The company implemented projects like Xiangshan Bridge Anluo Yellow River Bridge Wenzhou YongningSection III Management Discussion and Analysis

Bridge and Zhangjinggao Bridge. In the business of wind power steel structures the company completed construction

and lifting operations of multiple booster stations and jacket projects as well as manufacturing of core components for

wind power equipment.Other businesses proceeded orderly. The shipping business fully delivered all annual tasks and targets; after-sales service

developed steadily; continuous efforts were made to drive forward overseas renovation projects.IV. Analysis of the core competitiveness during the reporting period

√ Applicable Not applicable

1. Brand influence and market position

The company focused on development of its core businesses with systematic planning for three primary businesses

including port machinery offshore engineering and steel structures aiming to build comprehensive product lines in

these areas. In port machinery the company enjoyed high global brand recognition maintaining a dominant position

in the quay crane segment for many consecutive years. With its products distributed across 108 countries and regions

the company demonstrated strong brand influence. The possession of advanced design concepts for port facilities and

equipment enabled the company to design a full range of port machinery products including system integration and

engineering general contracting of smart ports. In offshore engineering the company secured a significant market share

in the domestic offshore engineering market relying on its core R&D capabilities for offshore engineering components

put an end to the technological monopoly of multiple key equipment products and successfully constructed China’s

first LNG dual-fuel powered trailing suction hopper dredger “Xin Hai Xun” and the world’s largest 150-meter pile-driving

vessel “Erhang Changqing”. In steel structures the company’s production bases equipped to meet various process

operation requirements successfully completed the world’s largest offshore wind power DC transmission project -

Yangjiang Sanshan Island Converter Station and the entire steel structure for the new San Francisco-Oakland Bay Bridge

in the USA a highly challenging project in the bridge engineering world.

2. R&D innovation and intelligent manufacturing

The company adhered to a scientific and technological innovation-oriented strategy. While focusing on tackling key

core technological challenges it continuously improved its science and innovation system and played an active partin pushing the high-quality implementation of major national technological research tasks. The “Integrated ProductionControl System for Container Terminals” and the “Deepwater Large Truss Pile-Encircling Wind Turbine InstallationPlatform” were among the first batch of products included by Shanghai Municipal Recommendation Directory for

Innovative Products in 2024. The domestically first 25-meter active motion compensated gangway independently

developed and designed by the company won the special award for first-set breakthroughs in high-end intelligent

equipment in Shanghai. The 140-meter class pile-driving vessel was recognized as the first set of major equipment. The

“New Generation Driverless Container Straddle Carrier and Intelligent Fleet System” won the second prize of the Shanghai

Scientific and Technological Progress Award. The company held a cumulative number of 2475 authorized patents

including 56 international patents. In 2024 alone 397 new authorized patents were added including 3 international

patents.Focusing on tackling “bottleneck” technologies upgrading traditional industries and reinforcing and supplementing

the industrial chain the company worked to initiate over 40 scientific research projects and proposed special research

topics in such key areas as port system integration intelligent upgrades and deep-sea offshore engineering equipment.Efforts were made to accelerate the formation of original technology sources in the field of automated terminal handling

and 31 technological research and development tasks were planned to be fulfilled within the 14th Five-Year Plan period.In collaboration with users the company established joint innovation institutes to accelerate the development and

breakthroughs in key green and smart port technologies. It also contributed to the orderly development of carbon

footprint studies for port machinery products through academia-industry partnerships with universities.

3. Global marketing network and digital supply chain platform

The company fully leveraged its advantages in relevant areas at home and abroad and became favored by numerous

customers around the world due to its high-quality products and services. With continuously enhanced international

operational capabilities the company expanded its global network by establishing overseas institutions and furtherANNUAL REPORT 2024

capitalized on localized development. Boasting a service team of over 1000 highly qualified professionals the company

established a global business service network and set up the first digital supply chain platform in the port machinery

industry ensuring solid support by rapid response to customer needs and efficient delivery of comprehensive one-stop

solutions.V. Performance during the reporting period

During the reporting period the Company’s operating revenue was steadily rising reaching RMB 34.456 billion

representing a year-on-year increase of 4.62%; the net profit attributable to shareholders of the parent company

amounted to RMB 534 million representing a year-on-year growth of 2.60%; net cash generated from operating activities

totaled RMB 5.276 billion up 1.77% compared to the same period last year.(I) Analysis of principal business operations

1. Analysis of changes in the related items in income statement and cash flow statement

Unit: Yuan Currency: CNY

Item 2024 2023 Change (%)

Operating revenue 34456420181 32933263802 4.62

Operating costs 30060171301 28480385794 5.55

Selling and distribution expenses 232654482 211361193 10.07

General and administrative expenses 818457672 849183436 -3.62

Financial expenses 324945799 546050450 -40.49

Research and development expenditures 1502397344 1311556665 14.55

Net cash flows from operating activities 5275878878 5184184446 1.77

Net cash flow from investment activities -221754360 -181631626 N/A

Net cash flows from financing activities -4303151262 -2391719903 N/A

Other income 145576944 99289337 46.62

Income from fair value change 13425987 -27339814 N/A

Credit impairment loss -418414816 -276310095 N/A

Assets impairment losses -200815539 -428844200 N/A

Income from disposal of assets 106961574 79038662 35.33

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 attributable to the Company’s ongoing cost optimization

and efficiency enhancement measures which led to tighter control over non-operational expenditures.The change in financial expenses was mainly driven by a reduction in interest expenses during the year coupled with an

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.The change in net cash flows from financing activities was mainly due to the repayment of bank loans by the Company.The change in other income was mainly due to higher government grants received in the year.The change in the gains from fair value change was mainly due to an increase in the fair value of the stocks held by the

Company.The change in credit impairment loss was mainly due to the higher provision for bad debts.Section III Management Discussion and Analysis

The change in assets impairment loss was mainly due to a decrease in the Company’s provision for inventory depreciation.The change in gains from disposal of assets was mainly attributable to the disposal of vessels by the Company.Detailed description of major changes in business type profit composition or profit sources of the Company in the

current period

Applicable √ Not applicable

2. Analysis of revenue and cost

√ Applicable Not applicable

The Company realized operating revenue of approximately RMB 34.456 billion representing a year-on-year increase of

4.62%; the operating cost was RMB 30.06 billion representing a year-on-year increase of 5.55%.

(1) Main business by sector product region and sales model

Unit: Yuan Currency: CNY

Main business by product

Year-on- year Year-on-year Year-on-year

Operating Gross profit

By product Operating costs change in operating change in change in gross

revenue rate(%)

revenue (%) operating cost (%) profit rate (%)

Port machinery 20593596470 17500885960 15.02 -3.03 -1.51 -1.31

Heavy equipment 8292575548 7544542230 9.02 52.92 46.81 3.79

Engineering construction

413546349454731637-9.96-72.95-70.69-8.46

projects

Steel structure and related

334197129232935324651.455.5614.22-7.47

income

Marine transport and others 1635636325 1131566701 30.82 17.83 6.32 7.49

Main business by region

Year-on- year Year-on-year Year-on-year

Operating Gross profit

By region Operating costs change in operating change in change in gross

revenue rate(%)

revenue (%) operating cost (%) profit rate (%)

Chinese Mainland 18080867874 14904839728 17.57 -1.36 -9.40 7.31

Chinese Mainland

1463912261421101332.92-84.82-80.97-19.64

(export sales)

Europe 1437730953 1370106110 4.70 31.09 11.28 16.96

Asia (excluding Chinese

978955539295091886182.8662.3691.99-15.00

Mainland)

North America 1664901303 1408156092 15.42 -30.24 -30.97 0.89

South America 1194357090 1024288862 14.24 0.91 13.62 -9.60

Africa 1789859277 1416915247 20.84 -11.95 -6.49 -4.62

Oceania 173662869 149654203 13.82 -75.80 -73.71 -6.84

Explanations for the main business by sector product region and sales model

1. The amount listed in “Chinese Mainland (export sales)” in “Main business by region” was the main operation income

from the export sales of this Company to the overseas subsidiaries of the Company and then sales to the related projects

of the domestic customers.

(2) Analysis table of cost-volume-profit relationship

Applicable √ Not applicable

(3) Fulfillment of major purchasing contracts and sales contracts

√ Applicable Not applicableANNUAL REPORT 2024

Fulfillment of major sales contracts signed by the reporting period

√ Applicable Not applicable

Unit: RMB 100 million 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 SriLanka

2.8256 1.83664 0.93396 0.98896 Yes

Port Sri Lanka Ports Authority

General Contract for Intelligent Legal Representative

Handling System of No. 9-10 W e n F u r o n g o f

Berth in Dalanping South Port Honggang Wharf Co. 14.3734 14.3734 2.77029 0 Yes

Operation Section Dalanping Ltd. in Guangxi Qinzhou

Port Area Qinzhou Port Tariff Free Port Area

Procurement of double-trolley

quayside container cranes for

Phase I project of the Container

Hu Chaoyang 12.93 5.5599 1.6809 7.3701 Yes

TerminalProjectin East Operation

Section of Yantian Port Area

ShenzhenPort (secondary)

Note: Unit of contracted value of Sri Lanka Project: USD 109

Fulfillment of major purchasing contracts signed by the reporting period

Applicable √ Not applicable

(4) Cost analysis

Unit: Yuan Currency: CNY

Information based on product

Proportion of

Proportion in

Items of cost the one in the Year- total cost in

By product 2024 2023 same period of on-year Description

structure the current the last year in change (%)

period (%)

total costs (%)

Raw material cost

Normal operating

Port machinery labor cost and 17500885960 58.48 17769268798 62.55 -1.51

fluctuations

production cost

Raw material cost

Normal operating

Heavy equipment labor cost and 7544542230 25.21 5139018033 18.09 46.81

fluctuations

production cost

Engineering Raw material cost

Normal operating

construction labor cost and 454731637 1.52 1551493106 5.46 -70.69

fluctuations

projects production cost

Raw material cost

Steel structure and Normal operating

labor cost and 3293532465 11.01 2883527923 10.15 14.22

related income fluctuations

production cost

Raw material cost

Marine transport Normal operating

labor cost and 1131566701 3.78 1064259854 3.75 6.32

and others fluctuations

production cost

Other information about cost analysis

None

(5) Changes in consolidation scope attributable to changes in equity of main subsidiaries during the reportin gperiod

Applicable √ Not applicable

(6) Significant change or adjustment of business products or service during the reporting period

Applicable √ Not applicableSection III Management Discussion and Analysis

(7) Particulars about main customers and suppliers

A. Main customers of the Company

√ Applicable Not applicable

The sales to the top 5 customers were RMB 6200273600 accounting for 18% of the total annual sales; the sales to the

related parties among the top 5 customers were RMB 0.00 accounting for 0.00% 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 3865889900 accounting for 13.6% of total annual purchases; the

purchases from the related parties among the top 5 suppliers were RMB 1634855000 accounting for 5.75% 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 attributable to the Company’s ongoing cost optimization

and efficiency enhancement measures which led to tighter control over non-operational expenditures.The change in financial expenses was mainly driven by a reduction in interest expenses during the year coupled with an

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

(1) Detail table of R&D investments

√ Applicable Not applicable

Unit: Yuan

Current expensed R&D investments 1502397344

Current capitalized R&D investments 0

Total R&D investments 1502397344

Proportion of total R&D investments in operating revenue (%) 4.36

Proportion of capitalized R&D investments (%) 0.00

(2) Detail table of R&D employees

√ Applicable Not applicable

Number of R&D employees in the Company 1713

Proportion of number of R&D employees in the total employees of the

21.15

Company (%)ANNUAL REPORT 2024

Educational structure of R&D employees

Educational structure category Number

Doctor 12

Master 263

Undergraduate 1283

Junior College 135

Senior high school and below 20

Age structure of R&D employees

Age structure category Number

Under 30 (exclusive) 260

30-40 (inclusive of 30 and exclusive of 40) 593

40-50 (inclusive of 40 and exclusive of 50) 727

50-60 (inclusive of 50 and exclusive of 60) 133

60 and above 0

(3) Explanation

Applicable √ Not applicable

(4) Reasons for any significant change in the composition of R&D personnel and the impact on the future development of

the Company

Applicable √ Not applicable

5. Cash flows

√ Applicable Not applicable

The change in net cash flows from financing activities was mainly due to the repayment of bank 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

1. Assets and liabilities

Unit: Yuan

Proportion of the

Proportion of the

Amount at the Amount at the end amount at the end

amount at the end Year- on- year

Project end of the current of the previous of the previous Description

of the current period change (%)

period period period in total

in total assets(%)

assets (%)

Notes receivable 50000000 0.06 14122031 0.02 254.06

Receivables financing 650260884 0.76 965569122 1.14 -32.66

Other receivables 780170637 0.91 1245727441 1.47 -37.37

Contract assets 3897647216 4.54 2779633134 3.28 40.22

Other current assets 858154532 1.00 476726381 0.56 80.01

Other equity instrument

1905308880.221048593740.1281.70

investment

Construction in progress 1301728801 1.52 5184520534 6.11 -74.89

Short-term borrowings 2297334457 2.68 4781640779 5.63 -51.96

Other description:

Notes receivable increased mainly due to the increase in commercial acceptance bills received by the Company.Section III Management Discussion and Analysis

Receivables financing decreased mainly due to the decrease in bank acceptance bills received by the Company.Other receivables decreased mainly due to the recovery of previously uncollected taxes.Contract assets increased mainly due to the growth in consideration recognized over time using the percentage-of-

completion method for which billing conditions had not yet been met.Other current assets increased mainly due to the increase in the Company’s input tax to be deducted.Investment in other equity instruments increased mainly due to the Company’s additional new investment projects.Construction in progress decreased mainly due to the conversion of self-built ships into fixed assets by the Company.Short-term borrowings decreased mainly due to the decrease in the short-term borrowings of the Company from banks.

2. Overseas assets

√ Applicable Not applicable

(1) Asset size

Including: overseas assets of 23972161666 (Unit: Yuan Currency: CNY) accounting for 27.95% of the total assets.

(2) Related explanation for relatively high proportion of overseas assets

Applicable √ Not applicable

3. Particulars about main restricted assets as at the end of the reporting period

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Book value at the end of the

Item Reason for restriction

period

Monetary funds 43651264 Special fund L/C deposits L/G deposits etc. in the overseas supervision account

Fixed assets 2416269819 Collateral for loan

Long-term receivables 1140307484 Hypothecation for loan

Other non-current assets 3819083104 Hypothecation for loan

Contract assets 203952618 Hypothecation for loan

Accounts receivable 352782386 Hypothecation for loan

Intangible assets 1387620730 Hypothecation for loan

4. Other description

Applicable √ Not applicable

(IV) Analysis of operational information of the industry

√ Applicable Not applicable

The manufacturing industry experienced accelerated transformation and upgrade the traditional equipment

manufacturing market faced reshaping and homogenized competition became increasingly fierce. In this context

further upgrading of high-end equipment system integration independent control and self-reliance basic supporting

capabilities integrated hardware-software solutions value-added services green development intelligent manufacturing

and lean production capabilities were essential to the maintenance of market competitiveness. For port machinery

operations the traditional port machinery market remained generally stable and there was an increased demand for

construction and renovation of automated terminals with the inland river market seeing development opportunities. For

offshore engineering operations the changing global energy landscape created new possibilities while strong demands

for marine oil and gas clean energy etc. and a slight recovery in the offshore engineering equipment market were noted.For steel structure operations the steel structure market held a significant potential for development due to growing

national support for green buildings and environmental protection industries.ANNUAL REPORT 2024

(V) Analysis of investment

Overall analysis of external equity investment

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Investment amount by the end of reporting period 2491884079

Changes in investment amount -281389314

Investment amount in the same period of the last year 2773273393

Change in investment amount (%) -10

1. Significant equity investment

Applicable √ Not applicable

2. Significant non-equity investment

Applicable √ Not applicable

3. Financial assets measured at fair value

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Profit or loss on Accumulated fair

Impairment Amount Amount sold/

Beginning changes in fair value changes Other Ending

Asset class provision for purchased in redeemed in the

balance values for the recognized in changes balance

the period the period period

period equity

Stock 712156397 13425987 -191381802 534200582

Total 712156397 13425987 -191381802 534200582

Securities investment

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Profit or loss Accumulated

Amount

Initial Book value at on changes fair value Profit or loss on Book value

Securities Stock Fund purchased Amount sold Accounting

Stock abbreviation investment the beginning in fair values changes investments in at the end of

Variety code source in the in the period subject

cost of the period for the recognized the period the period

period

period in equity

Self- Held-for-

Stock 06198 Qingdao Port 308515588 owned 248085844 -61117945 -186967899 72872694 0 trading

funds financial assets

Self- Held-for-

Stock 03969 CRSC 617854000 owned 281346332 114099242 20920710 395445574 trading

funds financial assets

Self- Held-for-

Stock 300095 Huawu Stock 11071606 owned 168181696 -29426688 2043520 138755008 trading

funds financial assets

Self- Held-for-

COSCO

Stock 601919 420000000 owned 14542525 -10128622 -4413903 11751531 0 trading

SHIPPINGHOLDINGS

funds financial assets

Total / / 1357441194 / 712156397 13425987 -191381802 107588455 534200582 /Section III Management Discussion and Analysis

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. On March 28 2024 the 32nd meeting of the Eighth Board of Directors and the 18th meeting of the Eighth Board ofSupervisors separately reviewed and approved the “Proposal for Review of the Associated Transaction Involving theTransfer of 17.21% Equity Interest in CCCC South America Regional Company by ZPMC” agreeing ZPMC transferring its

17.21% equity interest in CCCC South America Regional Company to China Communications Construction by means

of a non-public agreement at a consideration of approximately RMB 183698100. For more details see the relevant

announcement disclosed by the company on March 29 2024 through the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media (Extraordinary Announcement No. 2024-013). During the reporting

period the company completed the signing of the transaction agreement with CCCC and received corresponding

payment as provided in the agreement.

2. On May 27 2024 the 34th meeting of the Eighth Board of Directors reviewed and approved the “Proposal on Reviewingthe Disposal of Equity Assets at the Right Time” whereby the Company and its subsidiaries Shanghai Zhenhua Port

Machinery (Hong Kong) Co. Ltd. and Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co. Ltd.planned to dispose of part or all of the held-for-trading financial assets at the right time according to market conditions.The board of Directors agreed to authorize the company's management to dispose of the situation at an appropriate

time based on the stock market conditions. See the relevant announcement (Extraordinary Announcement No. 2024-023)

disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information

disclosure media on May 28 2024 for details. See paragraph “(V) Analysis of Investment” of Section “V. Performanceduring the Reporting Period” under “Section III Management Discussion and Analysis” of this annual report for details of

the Company’s holdings.

3. On December 25 2024 the 8th meeting of the Ninth Board of Directors and the 6th meeting of the Ninth Board ofSupervisors separately reviewed and approved the “Proposal for Review of the Capital Reduction and Related PartyTransactions of CCCC Zhenjiang Investment Construction Management and Development Co. Ltd.” agreeing the

capital reduction of CCCC Zhenjiang Investment Construction Management and Development Co. Ltd. (hereinafter

referred to as the “Project Company”) and corresponding adjustment of shareholding proportions. After discussions

among all shareholders of the Project Company it was proposed to reduce the registered capital from RMB 597520000

to RMB 100000000 and adjust the shareholding proportions accordingly. Upon completion of this capital reduction

ZPMC’ capital contribution would decrease from RMB 376440000 to RMB 70000000 while its shareholding would

increase from 63% to 70%. For more details see the relevant announcement disclosed by the company on December

26 2024 through the Shanghai Stock Exchange website (www.sse.com.cn) and designated information disclosure media

(Extraordinary Announcement No. 2024-062). The company completed the signing of the capital reduction agreement

with other shareholders of the Project Company and received the agreed capital reduction payment.ANNUAL REPORT 2024

(VII) Analysis of the primary holding companies and the joint-stock companies

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Registered Net profit/

Company Name Main product or services Asset size

capital (loss)

Installation of heavy port equipment engineering vessels

heavymetal structure and its parts; manufacturing and

N a n t o n g Z h e n h u a H e a v y installation of gearbox container yard crane super heavy-

25000000009205116131175080643

Equipment Manufacturing Co. Ltd. duty bridge steel structureheavy marine machinery

equipment; leasing of cranes; specializedcontracting of

steel structures

Sales of port loading and unloading machine bulk cargo

and container machine port engineering vessels (including

S h a n g h a i Z h e n h u a H e a v y floating engineering crane) material handling mechanical

Industries Port Machinery General products and parts sales and technical services installation 2184730000 2345413248 3300472

Equipment Co. Ltd. and maintenancetechnical consultation of all types of

machine and equipment key parts of the raw materials

and accessories equipment

Construction and instal lat ion of large -scale por t

e q u i p m e n t e n gi n e e r i n g ve s s e l s o f fs h o re h e av y

equipment mechanical equipment gear box for wind

ZPMC Transmission Machinery

power generation equipment; large- sized reverse branch 738878329 2931972777 97153182

(Nantong) Co. Ltd.transmission mechanism dynamic positioninglarge-sized

anchor windlass offshore oil platform lifting device and

components; design and manufacturing of the accessories

Shanghai Zhenhua Port Machinery Design manufacturing and sales of port machinery

HKD 50000000 14494446388 63565290

(Hong Kong) Co. Ltd. engineering vessel steel structure and other parts

Greenland Heavylift (Hongkong)

Marine transport USD 91975158 2625042401 212288745

Limited

ZPMC Qidong Marine Engineering

Machine manufacturing 303000000 1607387883 37684610

Co. Ltd.CCCC Financial Leasing Co. Ltd. Finance lease 9000000000 67704707283 1346380151

China Communications

Construction of port waterway highway and bridge USD 50000000 265481102 439958

construction USA. Inc

Fabrication and installation of steel structure; foundation

construction equipment installation and maintenance

of offshore wind power facilities; construction and

Jiangsu Longyuan Zhenhua Marine maintenance of submarine cable system; marine

26000000044722989932986904

Engineering Co. Ltd engineering construction equipment installation and

maintenance; leasing of installation equipment; civil

engineering construction; port and coastal engineering

construction.(VIII) Particulars about structured entities controlled by the Company

Applicable √ Not applicable

VI. Discussion and analysis of the future development of the Company

(I) Industrial structure and trend

Applicable √ Not applicableFor more details see “Part II. Industrial Situation of the Company during the Reporting Period" and paragraph“(IV) Analysisof Operational Information in the Industry” of “Part V. Primary Business Performance during the Reporting Period” both

under the“Section III Management Discussion and Analysis”.Section III Management Discussion and Analysis

(II) Development strategy of the Company

√ Applicable Not applicable

1. Overall development strategy - “123456”

(1) Establish one development vision: The company is committed to building a globally competitive technology-drivenmanagement-oriented quality-focused world-class equipment manufacturing enterprise that pursues “premiumproducts eminent brands leading innovation modern governance” with a global perspective concentrates on

manufacturing highlights businesses and focuses on professional fields.

(2) Consolidate two foundational projects: Upholding that science and technology are the primary productive forces

talent is the foremost resource and innovation is the primary driving force the company will with ports as the foundation

and steel structures as the framework vigorously develop new drivers of productivity build a high-quality team of

professional personnel and launch initiatives to strengthen the foundations of science and technology and talent.

(3) Focus on three core main businesses: Committed to serving the nation through industrial contributions the company

will putting customers at the center comprehensively develop port machinery offshore engineering equipment and

steel structures as core main businesses form three major product series and establish a modern industrial system;

while unwaveringly implementing national strategies the company will continue playing an active role in promoting

high-quality economic and social development and be a high-quality provider of integrated equipment manufacturing

services.

(4) Accelerate development with four prominent features: The company will step up its transformation and upgrading

by gearing towards high-end intelligent green and international development characterized by leading high-end

products intelligence empowerment for greater efficiency adherence to green practices and international expansion.

(5) Set up five guiding principles: Following the principles of strategic guidance market orientation problem-solving

focus value-based approach and high-target setting the company will implement five management philosophies:

coordination innovation lean practices efficiency and sharing and enhance its core competitiveness and brand

influence in five business areas as the world’s largest port machinery manufacturer the largest provider of automated

terminal system solutions the largest transporter of port machinery equipment a globally renowned manufacturer of

special engineering vessels and a major producer of large steel structures.

(6) Improve business capabilities in six fields: By extending the industrial chain enhancing the value chain and nurturing

the innovation chain the company aims to systematically improve its capabilities in market development R&D and

design supply chain management intelligent manufacturing vessel transportation and customer service so as to

comprehensively promote its integrated service capacity in high-end equipment manufacturing while striving to achieve

the “six zero” goals: zero safety accident zero quality defect zero emission for environmental protection zero delay of

schedule zero waste of costs and zero complaint from customers.

2. Measures for industrial developmentThe company will adhering to the development philosophy of “taking steel structures as the framework and ports as thefoundation” highlights its core businesses and focus on its professional fields to promote the coordinated development

of its three core businesses – port machinery offshore engineering and steel structures. It will vigorously grow its

presence in the new smart port industry forming a “3+1” business pattern to enhance its integrated service capabilities.

(1) Port machinery. The company will focus on producing a series of flagship products under the “1+N” model. While

maintaining its advantages in container quay crane market it will gradually build competitiveness in yard cranes actively

chase market share for bulk cargo equipment promote the green and intelligent development of fluid machinery

products and expand into N additional supporting services.

(2) Offshore engineering. The company will vigorously develop the offshore engineering equipment business focusing

on new energy offshore engineering equipment special offshore engineering equipment and offshore oil and gas

engineering equipment sectors. It will reinforce its strengths in key products increase efforts in developing emerging

markets attach more importance to breakthroughs in core technologies and upgrade the supporting facilities of offshore

engineering bases to reinforce high-end manufacturing capabilities.ANNUAL REPORT 2024

(3) Steel structures. While consolidating and developing its strengths in bridge steel structures wind power steel

structures and equipment steel structures businesses the company will actively expand its building steel structure

business to achieve steady growth in both domestic and international markets.(III) Operation plan

√ Applicable Not applicable

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the company will fully implementthe guiding principles from the 20th CPC National Congress and closely adhere to the overall requirements of the “Yearof High-quality Development and Breakthrough”. Following the vision of building a globally competitive technology-

driven management-oriented quality-focused world-class equipment manufacturing enterprise it will stick to the

“123456” development strategy to deliver new outcomes of high-quality development on its new journey.

1. Focus on market expansion and consolidate strengths in core business development

While paying close attention to the future strategies and product needs of global large port groups the company will

further develop its presence in the green and low-carbon market segment for port machinery product series focus on

areas such as light quay cranes for inland ports and yard rail-mounted gantry cranes and accelerate the establishment

of river port machinery product systems to improve its market competitiveness. That aside it will also work to further

expand overseas markets for its offshore engineering products and continue advancing upgrades in the steel structure

business.

2. Enhance customer service and improve customer service quality and efficiency

The company will improve customer satisfaction management establish a customer satisfaction indicator monitoring

system and refine forms for customer satisfaction survey and service quality assessment. To enhance after-sales service

capabilities it will build regional technical training centers overseas and provide professional training for after-sales

service personnel. In product files management more efforts will be made in building digital product archives so as to

enable multi-view of and multi-angle access to product information.

3. Optimize integrated management systems and improve streamlined operation frameworksThe Company will improve the intensive operation system firmly establish the philosophy of “coordinating efforts allover the Company as on a single chessboard” optimize the organizational structure and operational mechanism of

the headquarters and rationalize the relationships among responsibilities powers and rights of organizations at all

levels; improve the integrated operation system running through all areas aspects and processes such as scientific

research design procurement manufacturing transportation installation operation and maintenance and enhance the

integrated service capabilities of equipment manufacturing; improve the after-sales service system adopt a customer-

centered approach establish a lifecycle management system raise service awareness optimize customer experience and

increase service efficiency.(IV) Potential risks

√ Applicable Not applicable

1. Market risk

The main business of the Company is closely related to the operation and development of macro economy and the

industry cycle of the shipping industry. Currently the complexity and challenges of the global economic situation

together with geopolitical tensions food safety energy security fragile macroeconomic conditions rising inflation and

escalating debt crises will continue to affect global trade and investment as well as the stability of international financial

markets. The company will based on more accurate analysis and judgment of the macroeconomic environment promptly

identify systemic risks and proactively develop contingency plans to address potential risks.Section III Management Discussion and Analysis

2. Interest rate and exchange rate risk

The Company’s interest rate risk mainly comes from interest-bearing liabilities. In addition a certain proportion of

overseas business brings a certain scale of foreign exchange revenue and expenditure to the Company. The Company will

pay close attention to changes in exchange rates optimize the structure of foreign currency assets and liabilities adhere

to the concept of exchange rate risk neutrality incorporate exchange rate fluctuations into daily financial decisions

consider exchange costs into project costs and prevent exchange rate fluctuations from having a large impact on

operating results so as to achieve sound business development.

3. Supply chain security

As an export-oriented enterprise the issue of international supply chain security and stability is still serious. The Company

will continue to deepen supply chain management in all respects integrate internal and external resources promote the

systematic construction of supply chain focus on improving the resilience and security level of the supply chain enhance

the independent controllability of supply accelerate the localization rate of key systems and important supporting parts

and build the core competitiveness and driving force for the development of the Company.(V) Others

Applicable √ Not applicable

VII. Explanation of circumstances and reasons for non-disclosure by the Company in

consideration of inapplicable regulations state secrets and commercial secrets

Applicable √ Not applicableANNUAL REPORT 2024

Section IV Corporate Governance

I. Related information about corporate governance

√ Applicable Not applicable

During the reporting period the Company continuously enhanced its corporate governance with a focus on building a

well-structured rational and efficient Board of Directors in strict accordance with the Company Law the Securities Law

the Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on Shanghai Stock

Exchange and other relevant laws regulations and regulatory guidelines. Efforts were made to continuously improved the

quality of information disclosure further strengthened investor relations management and safeguarded the legitimate

rights and interests of the Company and all shareholders effectively. In 2024 the Company held a total of 12 meetings of

the Board of Directors 8 meetings of the Board of Supervisors and 3 meetings of the General Meeting of Shareholders

and the procedures of convening holding voting and disclosure of all meetings were in compliance with laws and

regulations and the requirements of the Company’s management system.The company worked to build a higher-level Board of Directors and improved its corporate governance system by

formulating more comprehensive regulations to reinforce the governance foundation. For that purpose it revised

multiple regulations including its articles of association and established the “Work System for Independent Directors”

among other systems to provide institutional support for the standardized operation of the Board. Structural optimization

was conducted to build a quality team. The company completed the renewal election of the Board and the new Board

incorporated directors with rich expertise and experience in business management financial finance mechanical

engineering and intelligent manufacturing to effectively enhance its rational decision-making. Stronger support was truly

provided for directors to perform their duties. To ensure external directors’ comprehensive and in-depth understanding

of its operational situation the company smoothed communication channels conducted field research and regularly

organized training to provide better support for external directors’ performance giving a full play to the professional

role of external directors in decision-making. During the reporting period the company was recognized by the China

Association for Public Companies as a “Excellent Practice Case of the Board of Directors of Listed Companies in 2024”.The company continuously improved information disclosure and enhanced corporate transparency. Based on careful

study and implementation of the latest policies it timely revised its “Information Disclosure Management Measures”

to further detail and specify the types of transactions requiring disclosure and their respective disclosure criteria. An

effective internal information communication mechanism was established to ensure true accurate complete and timely

information disclosure. During the reporting period the company strictly fulfilled its obligation of compliance disclosure

in accordance with regulatory requirements with a total of 115 announcements issued throughout the year including 63

interim announcements 48 online disclosure documents and 4 regular reports. The company also voluntarily disclosed

matters of concern to investors only if such disclosure was consistent with compliance requirements. To effectively

improve the readability and effectiveness of information disclosed the company also launched in conjunction with

the release of regular reports an “Understand at a Glance” feature on its official WeChat account using visual-textual

demonstration to clearly and vividly present key highlights of the reports so that investors could have a quicker grasp of

the company’s value.The company unceasingly optimized management of investor relations and worked to draw greater attention from the

capital market. To deepen and refine investor relations efforts the company made systematic planning and meticulous

arrangements. At the beginning of the year an “Annual Investor Relations Work Plan” was formulated to clearly define

annual work objectives. Besides high-quality shareholder meetings performance briefings and investor exchange

meetings were held. The company actively participated in institutional strategy conferences and continuously engaged

with investors through daily communication channels such as email hotline and "SSE E-Interaction to collect investor

feedback and concerns while conveying the company’s value for investment. In 2024 a total of four institutions issued 11

research reports on the company suggesting continued improvement of the company’s recognition in the capital market.Section IV Corporate Governance

Indicate whether there was any material in compliance with the applicable laws and administrative regulations as well as

the CSRC’s requirements on corporate governance. If yes please explain.Applicable √ Not applicable

II. Specific measures taken by the controlling shareholder and actual controller to guarantee

the asset personnel financial organizational and business independence of the Company

as well as solutions progress and subsequent plans when the Company’s independence is

intervened

Applicable √ Not applicable

Indicate whether the controlling shareholder the actual controller or any entity under their control is engaged in the

same or similar business with the Company. Please explain the impact of horizontal competition or any significant change

to horizontal competition on the Company solutions taken progress and subsequent plans.Applicable √ Not applicable

III. Brief introduction to the general meeting of shareholders

Query index of the website Date of disclosure

Session of meeting Convening date specified for publishing for publishing Resolutions

resolutions resolutionsReviewed and approved the “Proposal onReviewing the 2023 Work Report of Board ofDirectors” the “Proposal on Reviewing the

2023 Annual General Visit www.sse.com.cn and then 2023 Work Report of Board of Supervisors”

June 17 2024 June 18 2024Meeting of Shareholders enter the stock code to search the “Proposal on Reviewing the Work Reportof Independent Directors in 2023” and other

proposals (See Extraordinary Announcement

No. 2024-027 for details)Reviewed and approved the “Proposal on

2024 First Extraordinary Reviewing the Additional Election of Mr. Li

Visit www.sse.com.cn and thenG e n e r a l M e e t i n g o f November 25 2024 November 26 2024 Zhen as a Director of the Company” (See

enter the stock code to search

Shareholders Extraordinary Announcement No. 2024-050

for details)Reviewed and approved the “Proposal on

2024 Second Reviewing the Additional Election of Mr.

Visit www.sse.com.cn and thenExtraordinary General December 25 2024 December 26 2024 Zhang Xue as a Director of the Company” (See

enter the stock code to search

Meeting of Shareholders Extraordinary Announcement No. 2024-059

for details)

Extraordinary general meetings of shareholders convened at the request of preference shareholders with resumed voting

rights

Applicable √ Not applicable

Particulars about the general meeting of shareholders

√ Applicable Not applicable

In 2024 the Company convened 3 general meetings of shareholders which were convened and held in accordance with

relevant laws and rules including the “Company Law of the People’s Republic of China” the “Rules for General Meetingsof Shareholders of Listed Companies” and the “Articles of Association”; the qualifications of the attendees and the

convener were lawful and effective; the voting procedures and results of the meetings were lawful and effective; and the

resolutions of the general meetings of shareholders were lawful and effective.ANNUAL REPORT 2024

IV. Directors Supervisors and Senior Executives

(I) 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

Total amount of Whether

Number Number

Change remuneration pre- acquiring

of shares of shares Reason Remarks

Starting date of Expiration date in shares tax acquired from remuneration

Name Post Sex Age held at the held at of for the Total

tenure of tenure in the the Company in the in the related

beginning the end of change Remuneration

year reporting period parties of the

of the year the year

(RMB 10000) Company

Director June 17 2024 June 16 2027

You Ruikai Chairman Male 58 June 17 2024 June 16 2027 0 0 0 99.22 Yes

Vice Chairman (resigned) October 24 2023 February 27 2024

Director June 17 2024 June 16 2027

General manager September 18

June 16 2027

(president) 2024 Including three-

Zhu Xiaohuai Male 56 0 0 0 140.43 No

Executive General December 12 September 18 year term incentive

Manager (resigned) 2022 2024

CFO (resigned) July 12 2021 October 30 2024

Including three-

Wang Cheng Director Male 52 June 17 2024 June 16 2027 0 0 0 130.01 No

year term incentive

November 25

Director June 16 2027

Li Zhen Male 54 2024 0 0 0 14.11 Yes

CFO October 30 2024 June 16 2027

Zhang Jianxing Director Male 63 June 17 2024 June 16 2027 0 0 0 9 Yes

December 25

Zhang Xue Director Male 58 June 16 2027 0 0 0 0 Yes

2024

Zhang Hua Independent director Male 52 June 17 2024 June 16 2027 0 0 0 12 No

Xia Lijun Independent director Male 49 June 17 2024 June 16 2027 0 0 0 12 No

Bian Yongming Independent director Male 60 June 17 2024 June 16 2027 0 0 0 6.41 No

Du Wenli Independent director Female 51 June 17 2024 June 16 2027 0 0 0 0 No

Supervisor June 17 2024 June 16 2027 Including three-

Zhang Lijie Male 55 0 0 0 99.17 No

Chief supervisor June 17 2024 June 16 2027 year term incentive

Zhao Jizhu Supervisor Male 47 June 17 2024 June 16 2027 0 0 0 0 Yes

Wei Wei Supervisor Male 53 June 17 2024 June 16 2027 0 0 0 71.80 No

Including three-

Liu Feng Vice president Male 54 June 17 2024 June 16 2027 0 0 0 83 No

year term incentive

Including three-

Zhang Jian Vice president Male 56 June 17 2024 June 16 2027 0 0 0 126.77 No

year term incentive

Vice president June 17 2024 June 16 2027 Including three-

Li Ruixiang Male 50 0 0 0 130.01 No

Chief economist June 17 2024 June 16 2027 year term incentive

Chief legal counsel

Including three-

Sun Li secretary of the board Male 53 June 17 2024 June 16 2027 0 0 0 122.97 No

year term incentive

chief compliance officer

Lu Hanzhong Vice president Male 50 June 17 2024 June 16 2027 0 0 0 84.85 No

Shen Qiuyuan Vice president Female 48 June 17 2024 June 16 2027 0 0 0 84.16 No

Li Yiming Chief engineer Male 50 February 19 2025 June 16 2027 0 0 0 0 No

Director Chairman Including three-

Liu Chengyun Male 56 June 28 2021 February 26 2024 0 0 0 32.63 Yes

(resigned) year term incentive

September 15

Director (resigned) July 28 2024 0 0 0 77.91 No

2022

Ou Huisheng Male 55

General Manager

August 30 2022 July 28 2024 0 0 0

(resigned)

Independent Director

Zhao Zhanbo Male 49 June 28 2021 June 17 2024 0 0 0 5.64 No

(resigned)

Independent Director

Sheng Leiming Male 55 June 28 2021 June 17 2024 0 0 0 5.64 No

(resigned)Section IV Corporate Governance

Total amount of Whether

Number Number

Change remuneration pre- acquiring

of shares of shares Reason Remarks

Starting date of Expiration date in shares tax acquired from remuneration

Name Post Sex Age held at the held at of for the Total

tenure of tenure in the the Company in the in the related

beginning the end of change Remuneration

year reporting period parties of the

of the year the year

(RMB 10000) Company

Including three-

Shan Jianguo Vice president (resigned) Male 61 June 17 2024 February 18 2025 0 0 0 119.89 No

year term incentive

Total / / / / / / 1467.62 /

Name Main working experiences

Born in 1967 male bachelor EMBA master senior engineer. He began his career in July 1990. From April 2007 he successively served as

deputy general manager of the Investment Division of CCCC Second Harbor Engineering Co. Ltd. (“CCCC SHEC”) vice chairman general

manager and chairman of CCCC Yunfu New Port Co. Ltd. general manager of the Investment Division of CCCC SHEC deputy secretary

of the Party Committee general manager of the Investment Division of CCCC SHEC. From August 2013 he served as deputy general

You Ruikai manager of CCCC SHEC. From May 2016 he successively served as deputy secretary of the Party Committee director general manager secretary of the Party Committee chairman and general manager of CCCC SHEC. From November 2018 to September 2023 he served as

secretary of the Party Committee and director of CCCC SHEC. From October 24 2023 to February 27 2024 he served as a director and Vice

Chairman of the Company’s Eighth Board of Directors. He was appointed Chairman of the Eighth Board of Directors on February 27 2024

upon which he ceased to serve as Vice Chairman. He was subsequently appointed Chairman of the Ninth Board of Directors on June 17

2024. He currently serves as a director and the Chairman of the Company.

Born in 1969 male master of MBA senior accountant. He began his career in July 1991 and successively served as the section member

and vice 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

Zhu Xiaohuai Shanghai Dredging Co. Ltd. and the director chief accountant and Party committee standing member of CCCC Shanghai Dredging Co. Ltd. He has been the executive general manager of the Company since December 12 2022. He was appointed as General Manager

(President) of the Company on September 18 2024 concurrently stepping down from the role of Executive General Manager. He resigned

from the position of CFO on October 30 2024 due to work-related adjustments. And he currently serves as a director and General

Manager (President) of the Company.Born in 1973 male master of engineering senior political worker. He started working in August 1994 and successively served as the vice

secretary or secretary of league committee and vice secretary or secretary of Party Branch of No. 2 Engineering Co. Ltd. of CCCC Third

Harbor Engineering Co. Ltd.; vice director and director of Organization Department of CCCC Third Harbor Engineering Co. Ltd.; secretary

Wang Cheng of the Party Committee and vice general manager of No. 2 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd.; chairman of

board of supervisors vice secretary of the Party Committee secretary of Committee for Discipline Inspection and chairman of labor union

of CCCC Third Harbor Engineering Co. Ltd.; secretary of Commission for Disciplinary Inspection supervisor and chairman of board of

supervisors of the Company. Currently he is a director and the chairman of labor union of the Company.Born in 1971 male with a bachelor’s degree and an MBA he is a senior accountant. He started his career in July 1994. Since March 2002

he had successively served as the CFO of Shanghai Port Machinery Co. Ltd. Chief Accountant of Shanghai Port Machinery Heavy Industry

Co. Ltd. Chief Accountant General Counsel Standing Committee Member of the Party Committee and Director of CCCC Third Harbor

Consultants Co. Ltd. Party Committee Member and Vice President of China Communications Construction Yangtze River Delta Regional

Li Zhen Headquarters Deputy General Manager of Jiangsu Branch and Chief Accountant of CCCC East China Investment and Development Co.Ltd. In January 2022 he became a Party Working Committee Member and Vice President of China Communications Construction Haixi

Regional Headquarters Deputy General Manager of Fujian Branch and Chief Accountant of CCCC Haixi Investment Co. Ltd. Starting from

October 30 2024 he has served as the company’s CFO and since November 25 2024 as a Director. Currently he is a director and the CFO

of the company.Born in 1962 male bachelor senior accountant. He began his career in August 1985 and successively served as a cadre in the Finance

Department of CCCC Shanghai Dredging Co. Ltd. deputy chief of the Finance Section of Jiuzhou Dredging Engineering Company under

CCCC Shanghai Dredging Co. Ltd. deputy director and director of the Planning and Finance Department of CCCC Shanghai Dredging

Zhang Co. Ltd. member of the Party Committee deputy general manager and chief financial officer of CHEC Dredging Co. Ltd. secretary of

Jianxing the Party Committee deputy general manager and chief financial officer of CHEC Dredging Co. Ltd. member of the Party Committee

director and chief accountant of CCCC Shanghai Dredging Co. Ltd. dirctor and general manager of CCCC Financial Leasing Co. Ltd. and

secretary of the Party Committee and chairman of the board of directors of CCCC Financial Leasing Co. Ltd. He is currently a director of

the Company.Born in 1967 male with a master’s degree in Business Administration he is a senior economist. He started to work in September 1985.Since July 1996 he had successively held positions such as Manager of Beijing Tongdu Hotel at CCCC First Highway Engineering Bureau

Co. Ltd. (now known as China First Highway Engineering Co. Ltd. or “CFHE”) Manager of CFHE Beijing Kaitong Industrial Corporation

Manager of Beijing Kaitong Company Deputy Party Secretary Executive Director and General Manager of CFHE Beijing Road and Bridge

Machinery Plant Co. Ltd. (now known as CCCC Shitong Heavy Industry (Beijing) Co. Ltd.). Since April 2012 he had successively served as

Zhang Xue Deputy General Manager and Executive Deputy General Manager of China Highway Vehicle & Machinery Co. Ltd. Deputy Party Secretary

(in charge) and Deputy Factory Manager of CCCC Chenzhou Road Construction Machinery Plant (now known as CCCC Chenzhou Road

Construction Machinery Co. Ltd.). Since April 2016 he had been Deputy Party Secretary and Factory Manager of CCCC Chenzhou Road

Construction Machinery Co. Ltd. Deputy Party Secretary Executive Director and General Manager of CCCC Chenzhou Road Construction

Machinery Co. Ltd. and Deputy Chairman of CCCC Central-South Engineering Bureau Co. Ltd. Starting from December 25 2024 he has

served as a director of the company. Currently he is a director of the company.Zhang Hua Born in 1973 male PhD in Economics associate professor of finance. He successively served as a researcher lecturer and assistant professor at China Europe International Business School. Currently he is an independent director of the Company.Born in 1976 male PhD professor of accounting certified public accountant. From July 2006 to March 2011 he successively served as

lecturer master tutor professor and doctoral tutor of the School of Accounting Shanghai University of Finance and Economics. From

March 2011 to March 2023 he served as the director of the of Department of Accounting Antai College of Economics and Management

Shanghai Jiao Tong University. From March 2011 to present he has been a professor and doctoral tutor of Antai College of Economics

Xia Lijun and Management Shanghai Jiao Tong University. He is also a member of the Professional Accounting Education Steering Committee of

the Ministry of Education a member of the China National MPAcc Education Steering Committee a director of the Accounting Society

of China a director of China Audit Society vice president of Shanghai Audit Society vice president of Shanghai Cost Research Society

and an executive director of Shanghai Accounting Society. He has been selected into the “Accounting Masters Training Program” of the

Ministry of Finance and other talent programs. Currently he is an independent director of the Company.ANNUAL REPORT 2024

Name Main working experiences

Born in 1965 male with a doctorate in Engineering he is a professor and doctoral supervisor. From April 1991 to present he has worked

successively as an assistant lecturer a lecturer an associate professor and a professor at the College of Mechanical Engineering Tongji

University. From January 2009 to October 2012 he was the Director of the Institute of Mechanical Design and Theory at the same school.From September 2012 to December 2016 he served as Deputy Dean of the College of Mechanical Engineering. From October 2017 to

Bian May 2024 he was the Dean of the College of Mechanical Engineering. Currently he serves as Chairman of the Chinese Construction

Yongming Machinery Society Chairman of the Major Engineering Construction Technology and Equipment Branch of the Chinese Construction

Machinery Society member of the 8th Discipline Appraisal Group of the State Council Degree Committee member of the 10th National

Committee of the China Association for Science and Technology Director of the Ministry of Education Engineering Research Center for

Major Engineering Construction Technology and Equipment at Tongji University etc. Starting from June 17 2024 he has served as an

independent director of the company. Currently he is an independent director of the company.Born in 1974 female with a Ph.D. she is a professor and doctoral supervisor. She has long specialized in industrial process control and

optimization (mechanism and data-driven industrial process modeling advanced control and independent coordinated control large-

scale complex chemical process systemic optimization and decision making) machine learning and artificial intelligence (data mining

and statistic analysis method knowledge migration and joint learning big data-driven evolution and optimization) and R&D of smart

factory systems and applications. Currently she serves as Assistant President of East China University of Science and Technology Dean

of the Graduate School Deputy Minister of the Party Committee Teacher Work Department (concurrently) Deputy Director of the

Du Wenli Innovation and Entrepreneurship Education Center (concurrently) Director of the National Process Manufacturing Intelligent Control Technology Innovation Center Deputy Director of the National Key Laboratory of Industrial Control Technology Director of the Ministry

of Education Engineering Research Center for Process Systems Engineering member of the 8th Discipline Appraisal Group of the State

Council Degree Committee for Control Science and Engineering Director of the Technical Committee on Petrochemical Application of the

Chinese Association of Automation Executive Director of the Chinese Association for Artificial Intelligence Director of the Petrochemical

Application Professional Committee of the Chinese Association of Automation Chairman of the Shanghai Process Manufacturing

Innovation Research Institute Deputy Chairman of the Shanghai Association of Automation etc. Starting from June 17 2024 she has

served as an independent director of the company. Currently she is an independent director of the company.Born in 1970 male master senior engineer and senior political engineer. He started working in August 1991 and successively served

as deputy manager manager section chief of Construction Section and manager of Engineering Department of No.6 Engineering Co.Ltd. of CCCC Third Harbor Engineering Co. Ltd. Jiaxing Branch; deputy secretary of the Party committee and secretary of the Discipline

Zhang Lijie Inspection Commission and deputy general manager of CCCC Third Harbor Engineering Co. Ltd. Xiamen Branch; director of the Party Committee Work Department and general manager of the Corporate Culture Department of CCCC Third Harbor Engineering Co. Ltd.;

secretary of the Party committee and deputy general manager of CCCC Third Harbor Engineering Co. Ltd. Xiamen Branch; member of the

Party committee of CCCC Third Harbor Engineering Co. Ltd. secretary of the Party committee general manager and executive director

(legal representative) of Xiamen Branch. Currently he serves a supervisor & Chief Supervisor of the Company.Born in 1978 male master senior accountant. He successively served as chief accountant of CCCC Road and Bridge Chongqing

Fufengshi Highway Development Co. Ltd. deputy general manager of the Finance and Accounting Department deputy director of

the General Manager’s Office (in charge of work) and chief accountant of the Construction Management Branch of CCCC Road and

Zhao Jizhu Bridge International Co. Ltd. director and general manager of CCCC Qingyuan Investment and Development Co. Ltd. assistant general manager and deputy general manager of the Audit Department of CCCG member of the Standing Committee of the CPC and deputy

general manager of CCCG Real Estate and secretary of CPC Working Committee chairman and general manager of CCCC Dingxin. From

August 2022 to present he is a chief expert and deputy general manager of the Audit Department of CCCG and CCCC. Currently he is a

supervisor of the Company.Born in 1972 male bachelor senior political worker. He started working in August 1990 and successively served as secretary of the

General Youth League branch of the Technical School of Shanghai Port Machinery Manufacturing Plant secretary of the Youth League

Committee chairman of the labor union of the metal processing workshop and secretary of the Party branch of the gearbox workshop

of Shanghai Port Machinery Manufacturing Plant; manager of the Human Resources Department chairman of the Labor Union and

Wei Wei Deputy Secretary of the Party branch of ZPMC Nanhui Base deputy secretary of the temporary general Party branch chairman of the Labor Union and general office manager of Shanghai Port Machinery Heavy Industry Co. Ltd.; head of the first discipline inspection team

assigned by the Discipline Inspection Committee director of the Trade Union Office and deputy general manager (in charge of work) of

the Administrative Affairs Department of ZPMC. He currently serves as supervisor vice chairman of the Labor Union and director (director

general manager head) of the Work Department of Party Committee (Publicity Department of Party Committee United Front Work

Department of Party Committee Corporate Culture Department and Labor Union Office).Born in 1971 male master senior engineer and senior economist. He started working in July 1995 and successively served as deputy

director (in charge of work) and director of the Second Division of the Department of Industry and Trade of CCCC; director and

Liu Feng general manager assistant of the Equipment Manufacturing Marine Heavy Industry Department of CCCC; deputy general manger of the Equipment Manufacturing Marine Heavy Industry Department deputy general manger of Science and Technology Equipment

Department deputy director of Chief Engineer Office of CCCC; deputy general manager (deputy director) of the Department of Science

Technology and Digitalization (Chief Engineer Office) of CCCG and CCCC. Currently he is the vice president of the Company.Born in 1969 male MBA senior engineer. He successively served as the technician production planner and assistant director of No. 2

Panel beater of Shanghai Port Machinery Manufacturing Plant director of gearbox branch of Shanghai Port Machinery Manufacturing

Zhang Jian Plant vice director and member of the Party committee of Shanghai Port Machinery Manufacturing Plant vice general manager of

Shanghai Port Machinery Heavy Industry Co. Ltd. general manager and president assistant of ZPMC Operation Office. Currently he is the

vice president of the Company.Born in 1975 male bachelor senior economist. He successively served as the director of Technical Process Department trainee manager

of Manufacturing Department and manager of Quality Assurance Department of Zhangjiagang Base of Shanghai Port Machinery Plant;

Li Ruixiang project leader office manager vice director of Quality Safety Office of ZPMC Quality Inspection Company vice general manager and general manager of mechanical supporting base secretary of Party Branch vice chief economist general manager of budget assessment

department general manager of Material and Equipment Procurement Department and president assistant of the Company. He currently

serves as the vice president and chief economist of the Company.Born in 1972 male EMBA senior engineer. He successively served as the project leader and vice manager of Operation Department vice

Sun Li director of Operation Office and director of Off-Shore Office general manager assistant vice president and director of the Company.Currently he is the chief legal counsel secretary of the board and chief compliance officer of the Company.Born in 1975 male bachelor Bachelor of Engineering senior engineer. He started working in July 1997 and successively served as the

supervisor of Process Department and deputy manager of Process Department of the Company deputy general manager of Changxing

Lu Hanzhong Base general manager of Changxing Base deputy chief craftsman and manager of Process Department of the Company general manager

of Steel Structure Division and chairman & secretary of the Party committee of Nantong Zhenhua Heavy Equipment Manufacturing Co.Ltd. Currently he is the vice president and chief craftsman of the Company.Section IV Corporate Governance

Name Main working experiences

Born in 1977 female bachelor of economics senior economist. She started working in August 1999 and successively served as the

project supervisor of the Business Department general manager of the Project Management Department of the Business Office general

Shen Qiuyuan manager of the Port Machinery Business Department deputy chief economist of the Company general manager of the investment group

general manager of the Strategic Development Department general manager of the Marketing Department (Integrated Development

Management Department) and general manager assistant of the Company. Currently she is the vice president of the Company.Born in 1975 male with a master’s degree in Engineering he is a senior engineer. He started his career in July 1999. Since July 2001 he

had successively served as Deputy General Manager of the Comprehensive Mechanical Design Company of Shanghai Zhenhua Port

Machinery Co. Ltd. Dean Assistant and Party Secretary of the Onshore Heavy Industries Design Research Institute of Shanghai Zhenhua

Li Yiming Heavy Industries (Group) Co. Ltd. Since December 2016 he had successively served as Deputy Party Secretary (in charge) General Manager (Head) of the Human Resources Department (Party Organization Department) Party Committee Member and General Manager

Assistant of the company Party Secretary and Dean of Zhenhua Design and Research Institute. In June 2024 he took up the role of

General Manager of the Smart Port Division. Starting from February 19 2025 he has served as a Chief Engineer of the company. Currently

he is a Chief Engineer and General Manager of the Smart Port Division of the company.Born in 1969 male master senior economist senior engineer. He began his career in August 1989 and successively served as deputy

director of CCCC Fourth Harbor Engineering Co. Ltd. vice general manager of CCCC Investment Co. Ltd. secretary of the Party

committee chairman and general manager of CCCC Nansha Investment Development Co. Ltd. and CCCC Urban Investment Holding Co.Liu Chengyun Ltd. general manager and secretary of CPC Working Committee of CCCC South China regional headquarters general manager of the

(resigned) Strategic Development Department of China Communications Construction Company Ltd. (CCCC) general manager of the Investment

Division of CCCC director of the board office and general manager of the Strategic Development Department of China Communications

Construction Group Co. Ltd. (CCCG) and CCCC. He resigned as the chairman and director of the Company on February 26 2024 due to job

adjustment. Currently he is the deputy general manager of CCCG.Born in 1970 male PhD senior economist accountant CPA. He began his career in 1992 and successively served as the president of

Zhuhai Fuhua Group Co. Ltd. (renamed as Zhuhai Port Co. Ltd. in September 2010) director of Zhuhai Fuhua Group Co. Ltd. (Zhuhai Port

Co. Ltd.) director and deputy secretary of the Party Committee of Zhuhai Port Holdings Group Co. Ltd. general manager of Zhuhai Port

Ou Huisheng Holdings Group Co. Ltd. chairman party secretary and legal representative of Zhuhai Port Holdings Group Co. Ltd. legal representative

(resigned) of Zhuhai Port Co. Ltd. chairman of the board of directors of Zhuhai Port Co. Ltd. chairman of Tongyu Heavy Industry Co. Ltd. and

chairman of Qingdao Tianneng Heavy Industry Co. Ltd. He resigned from the positions of Director and General Manager (President) of

the Company on July 28 2024 due to work-related adjustments and currently serves as a Director and General Manager of CCCC Capital

Holdings Co. Ltd.Zhao Zhanbo Born in 1976 male PhD and professor. He had served as a teacher in School of Software & Microelectronics Peking University since 2005.(resigned) He is mainly engaged in the research in Internet business model innovation and corporate development strategy. He resigned from the position of independent director of the Company on June 17 2024.Sheng Born in 1970 male doctor of laws first grade lawyer. He successively served as a lawyer assistant and lawyer in Shanghai Foreign Trade

Leiming Law Firm a teacher of civil and commercial law in East China University of Political Science and Law partner and chief lawyer of Shanghai

(resigned) Zhongmao Law Firm and a lawyer of Guantao Law Firm. He resigned from the position of independent director of the Company on June 17 2024.Born in 1964 male bachelor senior engineer. He started working in July 1988 and successively served as the technician in Shanghai Port

Shan Jianguo Machinery Manufacturing Plant the engineer and chief engineer of ZPMC Machinery Office general manager and vice chief engineer of

(resigned) No.4 design office of design company vice director and director of ZPMC Machinery Office manager of budget assessment department and the dean of ZPMC Land-based Heavy Industry Research & Design Institute and the president assistant of the Company. He resigned

from the positions as vice president and chief engineer of the Company on February 18 2025 due to age-related reasons.Notes to other circumstances

Applicable √ Not applicable

(II) Incumbency of current and resigned directors supervisors and senior executives during the

reporting period

1. Position at the shareholder entity

√ Applicable Not applicable

Starting date Expiration date

Name of in-service staff Name of shareholding entity Position

of tenure of tenure

China Communications Construction

Liu Chengyun (resigned) Vice General Manager July 2023

Group Co. Ltd.Audit Department (Accountability Office

China Communications Construction Dispatched Supervisor Office Audit Center)

Zhao Jizhu August 2022

Group Co. Ltd. Deputy general manager (deputy director)

chief expert

Statement of the position

held in shareholding entityANNUAL REPORT 2024

2. Statement of the position held in other entities

√ Applicable Not applicable

Name of in-service Position held in other Starting date of Expiration date of

Name of other entities

staff entities tenure tenure

CCCC Financial Leasing Co. Ltd. Director May 2018

Zhu Xiaohuai CCCC Highway Bridges National Engineering Research Centre

Director September 2024

Co. Ltd.Zhang Jianxing CCCC Industrial Investment Holding Company Ltd. Director December 2022

Road & Bridge International Co. Ltd. Director July 2022

Zhang Xue CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. Director July 2022

CCCC Xi’an Road Construction Machinery Co. Ltd. Director December 2024

China Europe International Business School Vice professor July 2016

Nanjing Sunlord Electronics Corporation Ltd. Independent director November 2017 June 2024

Zhang Hua

Chengdu Qushui Science and Technology Co. Ltd. Independent director December 2019

Jiangsu Liyan Technology Co. Ltd. Independent director April 2017 April 2024

Antai College of Economics and Management Shanghai Jiao

Professor doctor tutor March 2011

Tong University

Shenzhen Huitai Medical Equipment Co. Ltd. Independent director November 2019

Shanghai Tongji Science & Technology Co. Ltd. Independent director April 2020

Xia Lijun Shanghai Bacai Information Technology Co. Ltd. Executive director April 2018

Jiangsu Recbio Technology Co. Ltd. (HKSE-listed) Independent director June 2021

Orient Securities Co. Ltd. Independent supervisor March 2021 November 2024

Zhejiang Sunrise Garment Group Co. Ltd. Independent director October 2018 June 2024

Huatai Baoxing Fund Management Co. Ltd. Independent director July 2016 March 2024

College of Mechanical Engineering Tongji University Professor June 2007

Bian Yongming

College of Mechanical Engineering Tongji University President October 2017 May 2024

East China University of Science and Technology President Assistant October 2024

Du Wenli Graduate School of East China University of Science and

President April 2021

Technology

Zhang Jian CCCC Shanghai Equipment Engineering Co. Ltd. Chairman March 2017

Lu Hanzhong Sinoocean Offshore Assets Management Limited Director January 2025

Zhenhua Marine Energy (HK) Co. Ltd. Chairman August 2021

Shen Qiuyuan

Shanghai Zhenhua Port Machinery (Hong Kong) Co. Ltd. Director August 2021 September 2024

Executive Director &

Li Yiming ZPMC Electric Co. Ltd. June 2024

General Manager

Statement of the

position held in

other entities

(III) Remuneration of directors supervisors and senior executives

√ Applicable Not applicable

In accordance with the regulations of “Articles of Association” the remuneration of

Decision-making process for the remuneration of directors

directors and supervisors is subject to the general meeting of shareholders and the

supervisors and senior executives

remuneration of the senior executives is approved by the board of directors.Do directors recuse themselves when the Board of Directors

Yes

discusses matters relating to their remuneration

Recommendations made by the Remuneration and Appraisal The Remuneration and Appraisal Committee maintained that the remuneration policy

Committee or the special meeting of independent directors on and compensation for directors supervisors and senior executives of the Company

the remuneration of directors supervisors and senior executives during the reporting period were legal compliant and reasonable.Basis for deciding the remuneration of directors supervisors and The basic salary plus performance bonus is assessed in combination with the

senior executives quantitative index of production and operation etc.Section IV Corporate GovernanceSee the “Changes in shares held by current and resigned directors supervisors andActual payout of remuneration for directors supervisors andsenior executives during the reporting period and their remunerations” in this section

senior executives

for details.Total remuneration actually obtained by all directors supervisors

RMB 14676200

and senior executives at the end of reporting period

(IV) Change in directors supervisors and senior executives

√ Applicable Not applicable

Name Post Change Reason of change

Chairman Elected Job adjustment

You Ruikai

Vice Chairman Resigned Job adjustment

General manager (president) Engaged Job adjustment

Zhu Xiaohuai Executive General Resigned Job adjustment

CFO Resigned Job adjustment

Director Elected Job adjustment

Li Zhen

CFO Engaged Job adjustment

Zhang Xue Director Elected Job adjustment

Bian Yongming Independent director Elected Additional Director

Du Wenli Independent director Elected Additional Director

Liu Chengyun Director Chairman Resigned Job adjustment

Ou Huisheng Director & General Manager (President) Resigned Job adjustment

Zhao Zhanbo Independent director Resigned Expiry of term of office

Sheng Leiming Independent director Resigned Expiry of term of office

Shan Jianguo Vice President & Chief Engineer Resigned Retirement

(V) Punishments by securities regulatory authority in recent three years

Applicable √ Not applicable

(VI) Others

Applicable √ Not applicable

V. Related information about the board meetings convened during the reporting period

Session of meeting Convening date Resolutions

31st Meeting of the Eighth Board of Reviewed and approved the “Proposal on Development the Independent DirectorDirectors February 27 2024 Work System of Shanghai Zhenhua Heavy Industries Co. Ltd.” and other proposals (see Extraordinary Announcement No. 2024-002 for details)

32nd Meeting of the Eighth Board of Reviewed and approved the “Proposal on Reviewing the 2023 Work Report of BoardDirectors March 28 2024 of Directors” and other proposals (See Extraordinary Announcement No. 2024-006 for details)

33rd Meeting of the Eighth Board of Reviewed and approved the “Proposal on Reviewing the 2024 First Quarterly Report ofDirectors April 29 2024 the Company” and other proposals (See Extraordinary Announcement No. 2024-016 for details)

34th Meeting of the Eighth Board of Reviewed and approved the “Proposal on Reviewing the Amendments to the Articles ofDirectors May 27 2024 Association of the Company” (See Extraordinary Announcement No. 2024-020 for details)

1st Meeting of the Ninth Board of Reviewed and approved the “Proposal on Reviewing Adjustments to Certain MattersDirectors June 17 2024 Related to the 2023 Stock Option Incentive Plan” and other proposals (See Extraordinary Announcement No. 2024-028 for details)Reviewed and approved the “Proposal on Developing the Reporting System of the

2nd Meeting of the Ninth Board of August 19 2024 Board of Directors to the General Meeting of Shareholders of Shanghai Zhenhua Heavy Directors Industries Co. Ltd.” and other proposals (see Extraordinary Announcement No. 2024-036

for details)ANNUAL REPORT 2024

Session of meeting Convening date Resolutions

3rd Meeting of the Ninth Board of Reviewed and approved the “Proposal on Reviewing the Full Text and Summary ofDirectors August 30 2024 2024 Semi-Annual Report of the Company” and other proposals (see Extraordinary Announcement No. 2024-039 for details)

4th Meeting of the Ninth Board of Reviewed and approved the “Proposal on Revising the Information DisclosureDirectors September 18 2024 Management Measures” and other proposals (See Extraordinary Announcement No. 2024-044 for details)

5th Meeting of the Ninth Board of Reviewed and approved the “Proposal on Reviewing the 2024 Third Quarterly Report ofDirectors October 30 2024 the Company” and other proposals (See Extraordinary Announcement No. 2024-046 for details)

6th Meeting of the Ninth Board of Reviewed and approved the “Proposal on the Provision of Guarantees by the Company forDirectors November 25 2024 Its Wholly-Owned Subsidiaries” and other proposals (See Extraordinary Announcement No. 2024-051 for details)

7th Meeting of the Ninth Board of Reviewed and approved the “Proposal on Reviewing the Results of Assessment on theDirectors December 09 2024 2023 Annual Business Performance of the Management Team” and other proposals (See Extraordinary Announcement No. 2024-056 for details)

8th Meeting of the Ninth Board of Reviewed and approved the “Proposal on the Amendments to the List of Decision-Directors December 25 2024 Making Authorities of the Governing Bodies of Zhenhua Heavy Industries Co. Ltd.” (See Extraordinary Announcement No. 2024-060 for details)

VI. Duty performance of directors

(I) Attendance of the directors at the board meetings and the general meeting of shareholders

Attendance at the

Attendance at Board Meetings general meeting

of shareholders

Director Independent Times of

Name director or not meetings Times of Times of Times of Personal Times of

should be personal attendance by attendance Times of absence for two attendance at the

attended in attendance telecommunication through a absence consecutive general meeting

this year proxy times of shareholders

You Ruikai No 12 12 1 0 0 No 3

Zhu Xiaohuai No 12 12 1 0 0 No 3

Wang Cheng No 12 12 4 0 0 No 3

Li Zhen No 3 3 0 0 0 No 1

Zhang Jianxing No 12 12 5 0 0 No 2

Zhang Xue No 1 1 0 0 0 No /

Zhang Hua Yes 12 12 4 0 0 No 2

Xia Lijun Yes 12 12 2 0 0 No 3

Bian Yongming Yes 8 8 1 0 0 No 2

Du Wenli Yes 8 8 4 0 0 No 1

Ou Huisheng

No 5 5 1 0 0 No 0

(resigned)

Zhao Zhanbo

Yes 4 4 1 0 0 No 0

(resigned)

Sheng Leiming

Yes 4 4 0 0 0 No 0

(resigned)

Explanations for personal absence from the meeting for two consecutive times

Applicable √ Not applicable

Times of the board meetings convened in current year 12

Including:

Times of meetings convened through telecommunication 1

Times of meetings convened on-site and through telecommunication 11Section IV Corporate Governance

(II) Objections raised by directors on matters of the Company

Applicable √ Not applicable

(III) Others

Applicable √ Not applicable

VII. Specialized committees under the Board of Directors

√ Applicable Not applicable

(I) Members of specialized committees under the board of directors

Category of specialized committee Members

Strategy committee You Ruikai Zhu Xiaohuai Zhang Jianxing Xia Lijun Bian Yongming

Nominating committee You Ruikai Wang Cheng Zhang Hua Bian Yongming Du Wenli

Audit committee Xia Lijun Zhang Xue Zhang Hua Bian Yongming Du Wenli

Remuneration and appraisal committee Zhang Hua Zhang Jianxing Zhang Xue Xia Lijun Du WenliNote: On March 27 2025 the company held the 10th meeting of the Ninth Board of Directors which reviewed and approved the “Proposal for ReviewingChanges to the Members of Special Committees under the Board of Directors” agreeing to appoint Director Zhu Xiaohuai as a member of the Strategy

Committee under the Ninth Board of Directors and Director Zhang Xue as a member of the Audit Committee and the Compensation & Evaluation

Committee under the Ninth Board of Directors.(II) 8 meetings convened by the audit committee during the reporting period

Other performance

Convening date Contents Important comments and suggestions

of dutiesReviewed the “Proposal on the 2023 Performance Report of A l l p ro p o s a l s a t t h i s m e e t i n g we reMarch 25 2024the Audit Committee” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the 2024 First A l l p ro p o s a l s a t t h i s m e e t i n g we reApril 26 2024Quarterly Report of the Company” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on the Appointment of the A l l p ro p o s a l s a t t h i s m e e t i n g we reJune 17 2024Company’s Chief Financial Officer” unanimously reviewed and approved.Reviewed the “Proposal on the Termination of the 2023 A l l p ro p o s a l s a t t h i s m e e t i n g we reAugust 19 2024Private Placement of A Shares by the Company” unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the Full Text andA l l p ro p o s a l s a t t h i s m e e t i n g we reAugust 30 2024 Summary of 2024 Semi-Annual Report of the Company” and

unanimously reviewed and approved.other proposalsReviewed the “Proposal on Reviewing the 2024 Third A l l p ro p o s a l s a t t h i s m e e t i n g we reOctober 30 2024Quarterly Report of the Company” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on the Provision of Guarantees by A l l p ro p o s a l s a t t h i s m e e t i n g we reNovember 25 2024the Company for Its Wholly-Owned Subsidiaries” unanimously reviewed and approved.R e v i e we d t h e “ Pro p o s a l o n t h e 2 0 2 3 Co m p l i a n ceA l l p ro p o s a l s a t t h i s m e e t i n g we reDecember 25 2024 Management Report of Zhenhua Heavy Industries Co. Ltd.”

unanimously reviewed and approved.and other proposals

(III) 5 meetings convened by the nominating committee during the reporting period

Other performance

Convening date Contents Important comments and suggestions

of dutiesReviewed the “Proposal on Re-election of the Company’s Al l proposals at this meet ing wereMarch 25 2024Board of Directors” unanimously reviewed and approved.Reviewed the “Proposal on the Appointment of Other Senior Al l proposals at this meet ing wereJune 17 2024Executives of the Company” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on the Appointment of Mr. Zhu Al l proposals at this meet ing wereSeptember 13 2024Xiaohuai as General Manager (President) of the Company” unanimously reviewed and approved.ANNUAL REPORT 2024

Other performance

Convening date Contents Important comments and suggestions

of dutiesReviewed the “Proposal on the Appointment of Mr. Li Zhen as Al l proposals at this meet ing wereOctober 30 2024Chief Financial Officer of the Company” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on the Election of Mr. Zhang Xue as an Al l proposals at this meet ing wereDecember 09 2024Additional Director of the Company” unanimously reviewed and approved.(IV) 6 meetings convened by the remuneration and appraisal committee during the reporting period

Convening date Contents Important comments and suggestions Other performance of dutiesReviewed the “Proposal on Reviewing theAll proposals at this meeting were unanimously

March 25 2024 Remuneration of Directors of the Company for

” reviewed and approved.2023 and other proposalsReviewed the “Proposal on Reviewing AdjustmentsAll proposals at this meeting were unanimously

June 17 2024 to Certain Matters Related to the 2023 Stock

reviewed and approved.Option Incentive Plan” and other proposalsReviewed the “Proposal for Reviewing theAdjustment to the Exercise Price of the Initial Grant All proposals at this meeting were unanimously

August 30 2024

of Stock Options under the 2023 Stock Option reviewed and approved.Incentive Plan” among other proposalsReviewed the “Proposal on the Company’s Annual All proposals at this meeting were unanimouslyOctober 30 2024Total Payroll Budget and Settlement Plan” reviewed and approved.Reviewed the “Proposal on the Reserved PortionAll proposals at this meeting were unanimously

November 25 2024 of the 2023 Stock Option Incentive Plan and the

reviewed and approved.Granting Process for Eligible Participants”Reviewed the “Proposal on Reviewing the Resultsof Assessment on the 2023 Annual Business All proposals at this meeting were unanimously

December 09 2024Performance of the Management Team” and other reviewed and approved.proposals

(V) 8 meetings convened by the strategy committee during the reporting period

Convening date Contents Important comments and suggestions Other performance of dutiesReviewed the “Proposal for the CompanyApply ing to Financia l I nst i tut ions for a All proposals at this meeting were unanimously

March 25 2024Comprehensive Credit Facility for Year 2024” and reviewed and approved.other proposalsReviewed the “Proposal on the Investment andAll proposals at this meeting were unanimously

April 26 2024 Establishment of a Wholly-Owned Subsidiary by

reviewed and approved.Zhenhua Heavy Industries Co. Ltd.”Reviewed the “Proposal on Reviewing the All proposals at this meeting were unanimouslyMay 27 2024Disposal of Equity Assets at the Right Time” reviewed and approved.Reviewed the “Proposal on the Termination ofAll proposals at this meeting were unanimously

August 19 2024 the 2023 Private Placement of A Shares by the

” reviewed and approved.CompanyReviewed the “Proposal for Reviewing the ExitAll proposals at this meeting were unanimously

August 30 2024 of Investor ICBC Investment from Zhenhua

” reviewed and approved.TransmissionReviewed the “Proposal on the Disposal of Ship All proposals at this meeting were unanimouslyOctober 30 2024Assets by Subsidiaries” reviewed and approved.Reviewed the “Proposal for Reviewing andAll proposals at this meeting were unanimously

November 25 2024 Finalizing the Measures for Strategic Planning

reviewed and approved.Management of the Company”Reviewed the “Proposal for Reviewing theCompany’s Plan for Overall Development in the All proposals at this meeting were unanimously

December 25 2024

14th Five-Year Plan Period (Mid-Term Revised reviewed and approved.Edition)” and other proposalsSection IV Corporate Governance

(VI) Particulars about objections

Applicable √ Not applicable

VIII. Description of the risks found by the board of supervisors

Applicable √ Not applicable

The board of supervisors has no objection to the supervision matters during the reporting period.IX. Particulars about the employees in the parent company and the main subsidiaries at the

end of the reporting period

(I) Particulars about employees

Number of in-service employees of the parent company 2859

Number of in-service employees of the main subsidiaries 5242

Total of in-service employees 8101

Number of retired employees required to be paid by the parent company

and its major subsidiaries

Functions

Category Number of staff

Production staff 3480

Sales staff 290

Technical staff 3077

Financial staff 200

Administrative staff 1054

Total 8101

Education background

Education level Number (person)

Master and above 762

Undergraduate 4534

Junior College 1505

Below Junior College 1300

Total 8101

(II) Remuneration policies

√ Applicable Not applicable

In line with the Company’s development strategy the Company improved the remuneration distribution incentive system

and performance assessment system and established and improved the performance assessment system based on the

different properties and characteristics of each entity and division; promoted the salary incentive system closely linking

the performance distribution with the unit or division performance value contribution industrial characteristics growth

phase and similar factors and comprehensively linking the staff performance with position duty and value contribution

and thus initially established the distribution mode integrating with the market.(III) Training plan

√ Applicable Not applicable

In line with the Company’s development strategy the Company improved the staff training system. According to

the training plan the Company implemented the training in a planned way to improve the business skill level and

professional quality of staff at various levels.ANNUAL REPORT 2024

(IV) Labor outsourcing

√ Applicable Not applicable

Total of labor outsourcing hours 2858000 hours

Total of labor outsourcing remuneration (RMB 10000) 21257.1

X. Proposal for profit distribution or convention of capital reserves into bonus shares

(I) Formulation implementation or adjustment of cash dividend distribution policies

√ Applicable Not applicable

As proposed by the 34th meeting of the Company’s Eighth Board of Directors held on May 27 2024 amendments were

made to the Articles of Association of the Company concerning profit distribution and cash dividends policy and as a

result the dividend distribution-related decision making process and mechanism were more complete and the minority

shareholders’ legal rights and interests were fully protected.On April 8 2024 the Company held a performance briefing for 2023 at which the Company’s management fully

communicated with investors on the profit distribution plan for 2023 through online interaction.On June 17 2024 the 2023 Annual General Meeting of Shareholders of the Company reviewed and approved the profit

distribution plan for 2023. The profit distribution plan for 2023 of the Company was as follows: profits will be distributed

based on the total share capital registered on the record date for the implementation of the equity distribution and a

cash dividend of RMB 0.50 (tax included) per 10 shares would be distributed to all shareholders. The Company will not

convert capital reserve into share capital or grant bonus shares for 2023. Details of the above profit distribution matters

are set out in the “Announcement of the Annual Profit Distribution Plan for 2023” published by the Company on the

Shanghai Securities News and the website of the Shanghai Stock Exchange (www.sse.com.cn). During the reporting

period the Company completed the implementation of profit distribution plan for 2023.As audited by Ernst & Young Hua Ming LLP the Company achieved a net profit attributable to the owners of the parent

company of approximately RMB 534 million in 2024. As at December 31 2024 the undistributed profit of the parent

company was approximately RMB 2.901 billion. To deliver a reasonable return to shareholders and strengthen their

investment confidence a profit distribution proposal for 2024 has been proposed based on the Company’s performance

in 2024: profits will be distributed based on the total share capital registered on the record date for the implementation

of the equity distribution and a cash dividend of RMB 0.55 (tax included) per 10 shares would be distributed to all

shareholders. As of December 31 2024 the Company’s total share capital consisted of 5268353501 shares. When

calculated on this basis the total cash dividend to be distributed will be RMB 289759442.56 (tax included). The Company

will not convert capital reserve into share capital or grant bonus shares for 2024. The profit distribution proposal has yet

to be submitted to the 2024 Annual General Meeting of Shareholders for consideration and approval.(II) Special statement on the cash dividend policy

√ Applicable Not applicable

In compliance with the Company’s Articles of Association or the relevant resolutions of general

√ Yes No

meeting of shareholders

Specific and clear dividend standards and ratios √ Yes No

Complete decision-making procedure and mechanism √ Yes No

Independent directors have faithfully performed their duties and played their due role √ Yes No

Non-controlling shareholders are able to fully express their opinion and demand and their legal

√ Yes No

rights and interests are fully protectedSection IV Corporate Governance

(III) If the profit is positive in the reporting period and the profit of the parent company available for

distribution to the shareholders is positive but the Company does not represent the plan or proposal

for profit distribution in cash the Company shall disclose in detail the reasons and the purpose and use

plan of the undistributed profit

Applicable √ Not applicable

(IV) Proposal for profit distribution and for converting capital reserve to share capital for the reporting

period

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Number of bonus shares per 10 shares (share) -

Number of dividends per 10 shares (RMB) (taxes included) 0.55

Number of shares converted by capital reserve per 10 shares (share) -

Amount of cash dividends (including tax) 289759442.56

Net profits attributable to the listed company common shareholders in consolidated

533524077

statements (%)

Ratio of cash dividends to the net profits attributable to common shareholders of the

54.31

listed company in the consolidated statement (%)

Amount of cash dividends from repurchase of shares -

Total amount of cash dividends (tax included) 289759442.56

Ratio of the total amount of cash dividends to the net profits attributable to common

54.31

shareholders of the listed company in the consolidated statement (%)

(V) Cash dividend distributions for the last three fiscal years

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Total cash dividends for the last three fiscal years (tax included) (1) 553177117.6

Total amount of share repurchases and cancellations for the last three fiscal years (2) -

Total amount of cash dividends and share repurchases & cancellations for the last three

553177117.6

fiscal years (3) = (1) + (2)

Average annual net profit for the last three fiscal years (4) 475146691

Cash dividend payout ratio (%) for the last three fiscal years (5) = (3)/(4) 116.42

Net profits attributable to common shareholders of the listed company in the consolidated

533524077

financial statements for the previous fiscal year

Undistributed profits at the end of the most recent fiscal year according to the parent

2901171744

company’s financial statements

XI. The Company’s equity incentive plan employee stock ownership plan or other incentives

to the employees and their impacts

(I) Related incentives disclosed in provisional announcement without progress or change in follow-up

implementation

√ Applicable Not applicableANNUAL REPORT 2024

Summary of events Query indexAccording to the “Official Reply to the Implementation of the Stock Option IncentiveSee the relevant announcement (Extraordinary AnnouncementPlan by Shanghai Zhenhua Heavy Industries Co. Ltd.” (GZKF [2024] No. 68) issued by the

No. 2024-004) disclosed by the Company on the website of theState-owned Assets Supervision and Administration Commission of the State Council”

Shanghai Stock Exchange (www.sse.com.cn) and designated

the State-owned Assets Supervision and Administration Commission of the State Council

information disclosure media on March 23 2024 for details.agreed to the Company’s implementation of the stock option incentive plan in principle.On March 28 2024 the Company held the 32nd meeting of the Eighth Board of Directors S e e t h e r e l e v a n t a n n o u n c e m e n t s ( E x t r a o r d i n a r y

and the 18th meeting of the Eighth Board of Supervisors. The meetings reviewed and Announcement No. 2024-006 2024-007 2024-011 and 2024-approved the “Proposal on Reviewing the Long-Term Equity Incentive Plan (Revised 012) disclosed by the Company on the website of the ShanghaiDraft) of Shanghai Zhenhua Heavy Industries Co. Ltd. and Its Summary” and other Stock Exchange (www.sse.com.cn) and designated information

related proposals. disclosure media on March 29 2024 for details.On June 1 2024 the company disclosed the “Announcement of Shanghai Zhenhua S e e t h e r e l e v a n t a n n o u n c e m e n t s ( E x t r a o r d i n a r yHeavy Industries (Group) Co. Ltd. on Independent Directors Publicly Soliciting Proxy Announcement No. 2024-022 2024-024 and 2024-025)Voting Rights from Shareholders” in which independent director Xia Lijun as the disclosed by the Company on the website of the Shanghai

solicitor sought voting rights from all shareholders of the company with respect to Stock Exchange (www.sse.com.cn) and designated information

relevant equity incentive plan proposals considered at the 2023 Annual General Meeting. disclosure media on May 28 2024 and June 1 2024 for details.On June 7 2024 the company disclosed the “List of Initial Grantees under the 2023 See the relevant announcement (Extraordinary AnnouncementStock Option Incentive Plan” and the “The Board of Supervisors' Review Comments and No. 2024-026) disclosed by the Company on the website of theStatement on the Public Disclosure of the List of Grantees under the 2023 Stock Option Shanghai Stock Exchange (www.sse.com.cn) and designatedIncentive Plan”. information disclosure media on June 7 2024 for details.On June 17 2024 the company held its 2023 Annual General Meeting which reviewedand approved the “Proposal for Reviewing the Revised Draft and Summary of the Long-term Equity Incentive Plan of Shanghai Zhenhua Heavy Industries (Group) Co. Ltd.” the

See the relevant announcement (Extraordinary Announcement“Proposal for Reviewing the Draft and Summary of the 2023 Stock Option Incentive PlanNo. 2024-027 and 2024-032) disclosed by the Company on theof Shanghai Zhenhua Heavy Industries (Group) Co. Ltd.” the “Proposal for Authorizingwebsite of the Shanghai Stock Exchange (www.sse.com.cn) andthe Board of Directors to Handle Matters Related to the Long-Term Equity Incentive Plan”

designated information disclosure media on June 18 2024 forthe “Proposal for Authorizing the Board of Directors to Handle Matters Related to thedetails.Stock Option Incentive Plan” and other related proposals. The company also discloseda “Self-inspection Report on Trading of Company Shares by Insider Information Holdersunder the 2023 Stock Option Incentive Plan”.On June 17 2024 the company held the first meeting of the Ninth Board of Directors

and the first meeting of the Ninth Board of Supervisors which reviewed and approve the“Proposal for Reviewing Adjustments to Certain Matters Related to the 2023 Stock OptionIncentive Plan” the “Proposal for Reviewing the Initial Grant of Stock Options under the S e e t h e r e l e v a n t a n n o u n c e m e n t s ( E x t r a o r d i n a r y

2023 Stock Option Incentive Plan to Eligible Participants” and other related proposals. Announcement No. 2024-028 2024-029 2024-030 and 2024-

The Board of Supervisors issued a review comment on the list of initial grantees. The 031) disclosed by the Company on the website of the Shanghaicompany also disclosed the “Announcement on Adjustments to Certain Matters Related Stock Exchange (www.sse.com.cn) and designated informationto the 2023 Stock Option Incentive Plan” the “Announcement on the Initial Grant of disclosure media on June 18 2024 for details.Stock Options under the 2023 Stock Option Incentive Plan to Eligible Participants” the“List of Initial Grantees (as of the Grant Date) under the 2023 Stock Option Incentive Planof Zhenhua Heavy Industries”.On August 16 2024 the company disclosed the “Announcement on the Results ofSee the relevant announcement (Extraordinary Announcementthe Initial Grant under the 2023 Stock Option Incentive Plan” according to which the

No. 2024-035) disclosed by the Company on the website of the

company had completed the initial grant registration process granting a total of 74.83

Shanghai Stock Exchange (www.sse.com.cn) and designated

million stock options to 343 eligible participants at the exercise price of RMB 3.31 per

information disclosure media on August 16 2024 for details.share with the initial grant registration date set as August 8 2024.On August 30 2024 the company held the third meeting of the Ninth Board of Directors

and the third meeting of the Ninth Board of Supervisors which reviewed and approved

S e e t h e r e l e v a n t a n n o u n c e m e n t s ( E x t r a o r d i n a r ythe “Proposal for Reviewing the Adjustment to the Exercise Price of the Initial GrantAnnouncement No. 2024-039 2024-040 and 2024-041)of Stock Options under the 2023 Stock Option Incentive Plan” agreeing to adjust the

disclosed by the Company on the website of the Shanghai

exercise price of the initially granted stock options to RMB 3.26 per share. The Board

Stock Exchange (www.sse.com.cn) and designated information

of Supervisors issued its review comment on this adjustment. At the same time the

disclosure media on August 31 2024 for details.company disclosed the “Announcement on the Adjustment to the Exercise Price of theInitial Grant of Stock Options under the 2023 Stock Option Incentive Plan”.On November 25 2024 the company held the 6th meeting of the Ninth Board of

Directors and the 5th meeting of the Ninth Board of Supervisors which reviewed andapproved the “Proposal for Reviewing Eligible Participants Entitled to the Reserved S e e t h e r e l e v a n t a n n o u n c e m e n t s ( E x t r a o r d i n a r yPortion of the 2023 Stock Option Incentive Plan and Granting Arrangements among Announcement No. 2024-051 2024-052 and 2024-054)

other related proposals. The Board of Supervisors issued its verification comment on disclosed by the Company on the website of the Shanghai

the list of eligible participants for the reserved grant. The company also disclosed the Stock Exchange (www.sse.com.cn) and designated information“Announcement on Granting Reserved Stock Options under the 2023 Stock Option disclosure media on November 26 2024 for details.Incentive Plan to Eligible Participants” and the “List of Eligible Participants for theReserved Grant under the 2023 Stock Option Incentive Plan”.Section IV Corporate Governance

Summary of events Query index

See the relevant announcement (Extraordinary AnnouncementOn December 10 2024 the company disclosed the “Board of Supervisors' ReviewNo. 2024-058) disclosed by the Company on the website of the

Comments and Statement on the Public Disclosure of the List of Grantees under the

Shanghai Stock Exchange (www.sse.com.cn) and designated

2023 Stock Option Incentive Plan”.

information disclosure media on December 10 2024 for details.On January 4 2025 the company disclosed the “Announcement on the Granting ResultsSee the relevant announcement (Extraordinary Announcementof the Reserved Grant under the 2023 Stock Option Incentive Plan” according to which

No. 2024-001) disclosed by the Company on the website of the

the company had completed the reserved grant registration process granting a total of

Shanghai Stock Exchange (www.sse.com.cn) and designated

3.66 million stock options to 16 eligible participants at the exercise price of RMB 4.00 per

information disclosure media on January 04 2025 for details.share with the reserved grant registration date being December 26 2024.(II) Incentives not disclosed in provisional announcement or with follow-up progress

Equity incentives

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Information about employee stock ownership plan

Applicable √ Not applicable

Other incentives

Applicable √ Not applicable

(III) Equity incentives awarded to the directors and senior executives during the reporting period

√ Applicable Not applicable

Unit: Share

Number of Number of

Number Number of Number of

New Stock Shares Acquired Exercise Market

of Stock Exercisable Stock Options

Options Through Price of Price at the

Options Shares Held at the

Name Post Granted Exercising Stock Stock End of the

Held at the During the End of the

During the Option During Options Reporting

Beginning Reporting Reporting

Reporting the Reporting (RMB) Period (RMB)

of the Year Period Period

Period Period

You Ruikai Director Chairman 0 450000 0 0 4.00 450000 3.92

Direc tor & G eneral

Zhu Xiaohuai 0 510000 0 0 3.26 510000 3.92

Manager (President)

Wang Cheng Director 0 410000 0 0 3.26 410000 3.92

Liu Feng Vice president 0 410000 0 0 3.26 410000 3.92

Zhang Jian Vice president 0 410000 0 0 3.26 410000 3.92

Vice President & Chief

Li Ruixiang 0 410000 0 0 3.26 410000 3.92

Economist

Chief legal counsel

secretary of the board

Sun Li 0 410000 0 0 3.26 410000 3.92

c h i e f c o m p l i a n c e

officer

Lu Hanzhong Vice president 0 410000 0 0 3.26 410000 3.92

Shen Qiuyuan Vice president 0 410000 0 0 3.26 410000 3.92

Li Yiming Chief engineer 0 350000 0 0 3.26 350000 3.92

Ou Huisheng Direc tor & G eneral

0510000003.265100003.92

(resigned) Manager (President)

Total / 0 4690000 0 0 / 4690000 /ANNUAL REPORT 2024

(IV) Establishment and implementation of the assessment mechanism and incentive mechanism for

senior executives during the reporting period

√ Applicable Not applicable

Pursuant to the relevant provisions of the Company Law and the Articles of Association the company conducted

the appointment and removal of directors supervisors and senior management personnel in a manner as specified

having basically established a comprehensive mechanism for the cultivation selection supervision assessment reward

and punishment and constraints of senior management personnel based on its actual conditions and formulated

corresponding management regulations. Senior management personnel were subject to term-based and contractual

management with their diligence and job performance during the evaluation period evaluated annually in accordance

with relevant regulations and corresponding rewards or penalties served based on the results.The company actively promoted the implementation of its equity incentive plans to fully motivate management and core

personnel and deliver new performance outcomes so as to ensure maximized corporate efficiency and standardized

operations. The Long-term Equity Incentive Plan and the 2023 Stock Option Incentive Plan formally approved by SASAC in

March 2024 were subsequently passed by the shareholders at the general meeting dated June 17 2024 to officially take

effect and the initial grant registration was completed on August 8 2024. The list of eligible participants entitled to the

reserved portion of the plan was finalized after review by the Board of Directors on November 25 2024 with the grant

registration completed on December 26 2024.XII. Development and implementation of internal control systems during the reporting

period

√ Applicable Not applicable

The Company actively promoted the continuous improvement of internal control management system in five aspects

including internal environment risk management major control activities information and communication and internal

supervision and evaluation. In the meanwhile through internal self-inspection daily and special supervision and internal

control evaluation the Company ensured the effective implementation of relevant management requirements smooth

communication of feedback information and timely rectification of defects.According to the the Company integrated the business systems and the management flow into the control requirements

of the internal control system and established the internal control risk and compliance management systems such as

“Management Measures for the Construction and Supervision of the Internal Control System” “Implementation Rules forInternal Control Management Audit” “Regulations on Comprehensive Risk Management” “Regulations on ComplianceManagement” and “Regulations on the Management of Significant Business Risk Reporting” and formulated a power and

responsibility manual to make clear the control nodes and approval flow of various operation and management matters

and improved the beforehand intermediate and afterwards risk control mechanisms and established a strict internal

control system.The Company continuously carried out annual internal control evaluation and internal control audit and the annual

report on internal control evaluation was submitted to the Board of Directors for discussion. In accordance with the

Basic Standard for Enterprise Internal Control and its supporting guidelines the Company in combination with its own

structure and characteristics comprehensively evaluated the reasonableness and operational effectiveness of the internal

control design over the internal environment risk assessment control activities information and communication internal

supervision and other elements of the Company found out the potential deficiencies or defects at all levels further

strengthened and standardized the construction of the Company's internal control and improved the management

quality and the risk prevention capability. Meanwhile the Company entrusted an external professional audit firm to

conduct the internal control audit every year. Through the external audit according to the requirements on internal

control the risks were effectively identified evaluated controlled monitored and improved to organically integrate risk

management internal control and daily operation activities and effectively control and prevent various risks to ensure

the sustainable and stable development of the Company.Section IV Corporate Governance

Description of the important deficiencies in internal control during the reporting period

Applicable √ Not applicable

XIII. Management and control over the subsidiaries during the reporting period

√ Applicable Not applicable

In accordance with the provisions of the Company Law the Articles of Association and other relevant laws regulations

and rules the Company continued to strengthen the management and supervision of its subsidiaries on standardized

operation information disclosure financial capital and operation to ensure legal compliance of operation and

management assets safety and truthful financial reports and related information and to further enhance the operation

management and risk management capability of the subsidiaries.XIV. Particulars about the audit report on internal control

√ Applicable Not applicable

Ernst & Young Hua Ming LLP engaged by the Company had audited the effectiveness of the internal control of the

financial statement as of December 31 2024 and issued a standard internal control audit report with unqualified opinions

(see the announcement published on the website of Shanghai Stock Exchange on the same day as this report for details).Audit report on internal control disclosed or not: Yes

Opinion type of internal control audit report: standard with clean opinion

XV. Remediation of problems identified by self-inspection in the special action on the

governance of listed companies

None

XVI.Others

Applicable √ Not applicableANNUAL REPORT 2024

Section V Environmental and Social Responsibility

I. Environmental Information

Establishment of environmental protection-related mechanisms Yes

Funds invested into environmental protection during the Reporting Period (Unit: RMB 10000) 11544.50

(I) 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 the permitted total emissions of major air pollutants from the company and its key

subsidiaries were as follows: sulfur dioxide (SO2): 1.332 tons/year; nitrogen oxides (NOx): 10.596 tons/year; particulate

matter: 64.740 tons/year; volatile organic compounds (VOCs): 412.004 tons/year. For wastewater the permitted annual

total discharge of major pollutants were: chemical oxygen demand (COD): 625.252 tons/year; ammonia nitrogen: 65.28

tons/year; total phosphorus: 1.468 tons/year; total nitrogen: 137.922 tons/year. For certain units some pollutants were

not assigned specific limits in their pollution discharge permits. The emissions and discharges of air and water pollutants

from all units in 2024 as detailed in the table below all remained within the permitted emission limits. Supervisory

monitoring by environmental authorities and self-monitoring by the company confirmed that emissions and discharges

of air pollutants wastewater and noise from all units met the respective national and local emission standards.For details of the pollutant emissions of major subsidiaries see the table below.Permitted

Name of main

Name of the emissions Over-

pollutant and Emission Number Distribution Emission Total emissions

company or Applicable pollutant emission standards in 2024 standard

characteristic mode of outlets of outlets concentration in 2024 (ton)

subsidiary (emission emissions

pollutant

permit) (ton)

SO2 Integrated Emission Standard of Air Pollutants 0.541 0.6072 None

NOx (DB31/933-2015) of Shanghai City Emission 0 9.1946 None

Pretreatment Standards of Pollutants for Shipbuilding Industry

Particulate 66 (3 out sand washing (DB31/934-2015) Emission Standards for Odor

Shanghai 9.8583 17.5096 Nonematter of service) coating and Pollutants (DB31/1025-2016) Emission Standard of

Zhenhua galvanization Meeting Cooking Fume (DB31-844-2014) and Standard for

Heavy Organized

VOCs relevant Fugitive Emission of Volatile Organic Compounds 122.206 254.448 None

Industries Co. emission

standards (GB37822-2019)

Ltd. Changxing

Branch COD 158.1797 354.358 None

Ammonia Wastewater I n te gra te d Wa s te w a te r D i s c h a rg e S t a n d a rd

2 26.3415 38.934 None

nitrogen outlet (DB31/199-2018) of Shanghai City

Total nitrogen 36.5813 124.155 None

Shanghai SO2 Integrated Emission Standard of Air Pollutants 0 0.026 None

Zhenhua Port NOx Sand (DB31/933-2015) Emission Standards for Odor Meeting 0.0184 0.619 None

Machinery Organized washing Pollutants (DB31/1025-2016) and Emission Standard

Particulate 11 relevant Heavy emission coating and of Air Pollutants for Boiler (DB31/387-2018) of

standards 3.8547 14.315 None

Industries Co. matter canteen Shanghai City and Standard for Fugitive Emission of

Ltd. VOCs Volatile Organic Compounds (GB37822-2019) 19.63 55.551 None

Particulate Integrated Emission Standard of Air Pollutants

Shanghai 4.7194 30.14 Nonematter Pretreatment (DB31/933-2015) of Shanghai City Emission

Zhenhua 9 (2 out of sand washing Standards for Odor Pollutants (DB31/1025-2016)

Heavy service) coating and Meeting Emission Standard of Cooking Fume (DB31-844-2014)

Industries Port VOCs Organized canteen and Standard for Fugitive Emission of Volatile Organic 8.79 45.56 Nonerelevant

Machinery emission

standards Compounds (GB37822-2019)

General

Equipment Co. Domestic sewage Domestic I n te gra te d Wa s te w a te r D i s c h a rg e S t a n d a rd

Ltd. / 1 outlet (not - /sewage outlet (DB31/199-2018) of Shanghai City

accounted for)Section V Environmental and Social Responsibility

Permitted

Name of main

Name of the emissions Over-

pollutant and Emission Number Distribution Emission Total emissions

company or Applicable pollutant emission standards in 2024 standard

characteristic mode of outlets of outlets concentration in 2024 (ton)

subsidiary (emission emissions

pollutant

permit) (ton)

Particulate Integrated Emission Standard of Air Pollutants (GB

6.9665 - None

matter 16297-1996) Integrated Emission Standard of Air

Shanghai Sand washing Pollutants (DB32 4041-2021) and Emission Standard

Zhenhua 13 and coating Meeting of Air Pollutants for Surface Coating of Engineering

Heavy VOCs Organized

relevant Machinery and Steel Structure Manufacturing

4.5825 25.92 None

Industries Co. emission

standards Industry (DB32/4147-2021) of Jiangsu Province

Ltd. Nantong

COD

Branch Integrated Wastewater Discharge Standard (GB8978-

10.8867 139.3640 None

Wastewater

Ammonia 2 1996) Wastewater Quality Standards for Discharge to outlet

nitrogen Municipal Sewers (GB/T31962-2015)

4.0587 17.496 None

SO2 Integrated Emission Standard of Air Pollutants (GB 0* - None

NOx 16297-1996) Integrated Emission Standard of Air Pretreatment 0* - None

Pollutants (DB32 4041-2021) Emission Standard of

Particulate sand washing Air Pollutants for Surface Coating of Engineering

coating 2.66416 - Nonematter Machinery and Steel Structure Manufacturing

19 hazardous

Industry (DB32/4147-2021) and Emission Standard

Nantong waste of Air Pollutants for Industrial Furnace and Kiln

Zhenhua warehouse VOCs Meeting (DB32/3728-2020) of Jiangsu Province Emission and canteen 2.3351 16.125 NoneHeavy Organized

relevant Standards for Odor Pollutants (GB14544-1993)

Equipment emission

standards Emission Standard of Cooking Fume (GB18483-2001)

Manufacturing

Co. Ltd. COD 10.90266 131.5304 None

Ammonia

nitrogen Integrated Wastewater Discharge Standard (GB8978-

2.69354 8.85 None

Wastewater

1 1996) Wastewater Quality Standards for Discharge to

Total outlet Municipal Sewers (GB/T31962-2015) 0.28085 1.468 None

phosphorus

Total nitrogen 4.10645 13.767 None

SO2 Integrated Emission Standard of Air Pollutants 0 - None

NOx (GB16297-1996) Emission Standard of Air Pollutants 2.0904** - None

Heat for Boiler (GB13271-2014) Integrated Emission

Particulate treatment Standard of Air Pollutants (DB32 4041-2021) of 0 - None

ZPMC matter

11

sand washing Jiangsu Province Emission Standards for Odor

Transmission and coating Meeting Pollutants (GB14554-1993) Emission Standard of Air

Organized

Machinery VOCs relevant Pollutants for Industrial Surface Coating (DB32/4439-emission 2.6249 5.3 None

(Nantong) Co. standards 2022) of Jiangsu Province

Ltd.COD Integrated Wastewater Discharge Standard (GB8978- 12.6952*** - None

Domestic

1 1996) Wastewater Quality Standards for Discharge to

Ammonia sewage outlet Municipal Sewers (GB/T31962-2015) 0.5666*** - None

nitrogen

SO2 Integrated Emission Standard of Air Pollutants (GB 0 0.0004304 None

NOx 16297-1996) Emission Standards for Odor Pollutants Pretreatment 0.0012 0.002 None

(GB14554-1993) Integrated Emission Standard of

ZPMC Qidong Particulate 10 sand washing

Meeting Air Pollutants (DB32 4041-2021) of Jiangsu Province

Marine matter Organized and coating

0.5676 1.194 None

relevant Emission Standard of Air Pollutants for Boiler

Engineering VOCs emission standards (GB13271-2014) 1.3893 6.501 None

Co. Ltd.Integrated Wastewater Discharge Standard (GB8978- Domestic sewage

Domestic

/ 1 1996) Wastewater Quality Standards for Discharge to outlet (not - None

sewage outlet

Municipal Sewers (GB/T31962-2015) accounted for)

SO2 0.49728 0.698270 None

Integrated Emission Standard of Air Pollutants

NOx (DB31/933-2015) Emission Standards for Odor 0.62796 0.780500 None

Sand washing

Shanghai Port Particulate 10 Pollutants (DB31/1025-2016) and Emission Standard and coating Meeting

Machinery matter Organized of Air Pollutants for Boiler (DB31/387-2018) of

0.63300 1.581650 None

relevant

Heavy Industry emission Shanghai CityVOCs standards 1.29876 2.59866 None

Co. Ltd.Domestic sewage

Domestic I n te gra te d Wa s te w a te r D i s c h a rg e S t a n d a rd

/ 1 outlet (not - None

sewage outlet (DB31/199-2018)

accounted for)

Note: 1. - in the table indicates that no permitted emission limit was inciated for this indicator on the pollutant emission permit of the enterprise.

2. If the total emissions were 0 in the table it indicates that the pollutant was not detected.

3. *For Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. manual testing for nitrogen oxides and sulfur dioxide was conducted in 2024 but none

were detected hence a discrepancy with previous years’ data.

4.**For Shanghai Zhenhua Heavy Industries Group (Nantong) Transmission Machinery Co. Ltd. no nitrogen oxides were detected in the third and fourth

quarters so the annual data for 2024 were consistent with the data from the first half of the year.

5.***For Shanghai Zhenhua Heavy Industries Group (Nantong) Transmission Machinery Co. Ltd. the COD and ammonia nitrogen data remained consistent

with those reported in the pollutant discharge permit execution report. Starting from 2024 pollutants in domestic sewage would be counted.ANNUAL REPORT 2024

2. Construction and operation of pollution control facilities

√ Applicable Not applicable

The company together with its subsidiaries has consistently followed Xi Jinping Thought on Ecological Conservation.Guided by national environmental protection laws regulations and industrial policy requirements the company andits subsidiaries have continuously improved their environmental protection systems including the “Regulations onAccountability for Ecological Environmental Protection” and specifically formulated and issued the “Action Plan forEnvironmental Protection Management and Improvement (2024-2027)” to enhance their environmental management.During the reporting period the company and its subsidiaries implemented more comprehensive management of

exhaust gases wastewater noise hazardous waste etc. with all pollution control facilities in normal operation; Shanghai

Zhenhua Heavy Industries (Group) Co. Ltd. Nantong Branch renovated its first-phase sewage treatment facilities for

biological treatment of domestic sewage before discharge into the municipal pipeline network; a new initial rainwater

collection pond was constructed to collect and treat initial runoff from the first-phase open field before discharge.

3. Environmental impact assessment (EIA) of construction project and other administrative licenses for

environmental protection

√ Applicable Not applicable

The Company strictly implemented the relevant management regulations of “Three Simultaneities” for environmental

protection of national and local construction projects in all new reconstruction and expansion projects and had gone

through the procedures of environmental impact assessment and completion acceptance for the projects. The following

table summarizes the new reconstruction or expansion projects undertaken by the Company’s subsidiaries during the

reporting period.Name of the company or subsidiary Major Projects During the Reporting Period EIA Approval/Acceptance Progress

The project is built in two phases with the

ZPMC Changxing intelligent port equipment

Shanghai Zhenhua Heavy Industries Co. Ltd. first phase currently in the completion and

industry project

commissioning stage

Paint warehouse reconstruction project of Inspection of environmental protection works

Shanghai Zhenhua Heavy Industries Port

Shanghai Zhenhua Heavy Industries Port of the project was completed at the end of April

Machinery General Equipment Co. Ltd.Machinery General Equipment Co. Ltd. 2024

Shanghai Zhenhua Port Machinery Heavy Technical improvement project of painting Constructed in two phases of which the phase-

Industries Co. Ltd. automatic production line II work was accepted on October 2024

Technological transformation project for processing Inspection of environmental protection works

ZPMC Transmission Machinery (Nantong) Co. Ltd. and production of core parts of the lifting system of the project was completed at the end of

for wind power installation platforms December 2024

Production projects of finished cruise ship

chemical tanker bulk carrier and other offshore Self-inspection of the project was completed in

ZPMC Qidong Marine Engineering Co. Ltd.engineering product below 100000 tons (water- June 2024.related engineering projects)

Nantong Zhenhua Heavy Equipment 100000t/a steel bridge deck panel production line

Obtained the EIA approval

Manufacturing Co. Ltd. intelligent renovation project

Nantong Zhenhua Heavy Equipment

Skid-mounted fuel station project Obtained the EIA approval

Manufacturing Co. Ltd.Nantong Zhenhua Heavy Equipment The project achieved environmental acceptance

100000t/a floating crane project

Manufacturing Co. Ltd. in November 2024.According to the “Regulations on the Administration of Pollutant Emission Permit” the “Measures for the Administrationof Pollutant Emission Permit” and other national requirements the Company and its subsidiaries applied for pollutant

emission permits and applied for the change of pollutant emission permits according to the actual discharge changes

and obtained the “Pollutant Emission Permit” issued by local ecological and environmental protection department.During the reporting period ZPMC Qidong Marine Engineering Co. Ltd. ZPMC Changxing Branch and Shanghai Zhenhua

Port Machinery Heavy Industries Co. Ltd. completed procedures for change or renewal of their Pollutant Emission Permits

as required. In strict accordance with the requirements of emission permit the Company continued to discharge pollutant

as permitted carried out self-monitoring established accounts reported regularly and made information public.Section V Environmental and Social Responsibility

4. Emergency proposal for environmental incidents

√ Applicable Not applicable

In order to prevent the occurrence of sudden environmental pollution incidents and to control and deal with themquickly and effectively after the occurrence the Company complied with the “Environmental Protection Law of thePeople’s Republic of China” “Law of the People’s Republic of China on the Prevention and Control of Water Pollution” “Lawof the People's Republic of China on the Prevention and Control of Atmospheric Pollution” “Law of the People's Republicof China on the Prevention and Control of Solid Waste Pollution” “Measures for the Administration of Recording theEmergency Plan for Emergent Environmental Events of Enterprises and Institutions (Trial)” “Guidelines for the Compilationof Risk Assessment Report on Environmental Emergencies in Enterprises (Trial)” and its branches and subsidiaries

based on the assessment of existing environmental risks prepared their emergency plans filed them with the local

ecological and environmental protection department and actively carried out emergency drills to further prevent and

effectively respond to unexpected environmental pollution incidents. Additionally during the reporting period Shanghai

Zhenhua Heavy Industries Port Machinery General Equipment Co. Ltd. ZPMC Qidong Marine Engineering Co. Ltd. ZPMC

Changxing Branch and Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. completed the revision and formal

filing of their emergency response plans for environmental incidents.

5. Environmental self-monitoring plan

√ Applicable Not applicable

All subordinate units of the Company installed online monitoring equipment for exhaust gas VOCs and wastewater as

required and networked them with the ecological and environmental authorities and carried out regular self- monitoring

of environmental protection in accordance with the requirements of the pollutant emission permits and technical

guidelines for self-monitoring of pollutant discharging units. All units released complete and true self-monitoring

information on information disclosure platforms such as National Pollution Source Monitoring Information Management

and Sharing Platform Shanghai Integrated Pollution Source Management Information System and Jiangsu Pollutant

Discharging Unit Self-monitoring Information Release Platform in a timely manner as required.

6. Administrative penalties imposed for environmental issues during the reporting period

√ Applicable Not applicable

During the reporting period the Company’s pollutant discharging units did not receive any administrative penalties for

environmental protection.

7. Other environmental information to be disclosed

√ Applicable Not applicable

The Company conducted clean production audits as required. Nantong Branch of Shanghai Zhenhua Heavy Industry

Co. Ltd. (“ZPMC Nantong Branch”) Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. Changxing Branch

of Shanghai Zhenhua Heavy Industry Co. Ltd. (“ZPMC Changxing Branch”) had completed clean protection audits. By

the end of December 2024 Shanghai Zhenhua Port Heavy Industry Co. Ltd. completed the audits and acceptance.In November 2024 Shanghai Zhenhua Heavy Industries Qidong Marine Engineering Co. Ltd. completed the clean

production audits and acceptance.(II) Environmental protection of companies other than key emission units

√ Applicable Not applicable

1. Administrative penalties imposed for environmental issues

Applicable √ Not applicableANNUAL REPORT 2024

2. Other environmental information disclosed with reference to key emission units

√ Applicable Not applicable

The Company’s subsidiary ZPMC Zhangjiagang Port Machinery Co. Ltd. had 4 waste gas outlets and 1 wastewater outlet

and the main pollutants were: wastewater (COD ammonia nitrogen) waste gas (particles VOCs) solid waste noise etc.Discharge method: No industrial wastewater is generated. Domestic sewage is discharged into the municipal sewer

system. The atmospheric pollutants such as the particulate matter and VOCs in waste gas were discharged in a well-

organized manner after treatment; the solid wastes and hazardous wastes were handed over to the qualified entities for

treatment; plant boundary noise was discharged up to the standard. During the reporting period ZPMC Zhangjiagang

Port Machinery Co. Ltd. discharged 0.8513 tons of particulate matter and 1.885 tons of VOCs.

3. Reasons for not disclosing other environmental information

Applicable √ Not applicable

(III) Information that is conducive to ecological protection pollution prevention and environmental

responsibility performance

√ Applicable Not applicable

The Company continued to implement Xi Jinping Though on Ecological Civilization pursued green development with

concrete actions and put various pollution control measures into effect. During the reporting period the Company

continuously improved its environmental management system from the following aspects. First refine the management

system and solution architecture make the Action Plan for Enhancing Energy Conservation and Environmental Protection

Management (2024 ~ 2027) and revise three environmental protection regulations including the Provisions for the

Supervision and Management of Ecological Environment Protection. Second carry out training on energy conservation

and environmental protection at different levels deliver online training to all staff through internal platform and organize

seven offline training sessions covering topics such as green factory emergency response plan and clean production

audit to enhance the level of energy conservation and environmental protection management effectively. Third build

environmental risk prevention and control system persistently conduct 19 special environment inspections throughout

the year and invite external environmental experts to carry out special environment inspection and effectively control

risks. Fourth launch a series of activities such as World Environment Day National Ecology Day Energy Conservation and

Environmental Protection Month etc. and further enhance the influence of environmental protection publicity through

on-site fun activities benchmarking exchanges and co-organizing the Shanghai Eco-friendly Art Festival. Fifth play

a leading role through exemplary demonstration. ZPMC Changxing Branch was awarded the title of “Green Factory”

in Shanghai and received energy conservation and emission reduction rewards. Shanghai Zhenhua Heavy Industries

(Nantong) Transmission Machinery Co. Ltd. (“ZPMC Transmission Machinery (Nantong)”) and Nantong Zhenhua Heavy

Equipment Manufacturing Co. Ltd. were included in the list of A-level enterprises for performance evaluation on heavy

pollution weather in key industries in Jiangsu Province.(IV) Measures taken to reduce carbon emissions during the reporting period and their effects

Carbon reduction measures taken or not Yes

Carbon dioxide equivalent emissions reduced (in tons) 19000

Types of carbon reduction measures (e.g. using clean energy for power Green energy use; equipment energy efficiency improvement;

generation using carbon reduction technologies in the production process comprehensive energy-saving measures for transportation vessels;

developing and producing new products that contribute to carbon reduction etc.) R&D and application of green low-carbon products and technologies

Specific description

√ Applicable Not applicable

The Company has taken the following measures to reduce carbon emissions:

1. Actively promote the use of green energy. Each production unit of the Company has installed rooftop distributed

photovoltaic power generation systems with a total installed capacity of 36 MW. In 2024 approximately 33 million kWhSection V Environmental and Social Responsibility

of photovoltaic power was self-consumed and carbon dioxide emissions were reduced by 19000 tons approximately.

2. Promote energy-saving renovation and energy efficiency improvement of equipment. The VOCs treatment equipment

in the paint shop has been equipped with a “smart energy-saving control system” which based on the existing PLC

control realizes intelligent control throughout the entire operation cycle of the equipment achieves immediate matching

between equipment and production conditions throughout the entire production process assures the intelligent

adjustment of equipment operating state according to the change of production load and eliminates ineffective

power consumption of equipment so as to achieve the energy-saving goals. After stable operation of such system the

average energy-saving efficiency per unit of paint consumption was up to 26.4% as assessed by the third-party agency

professionally fully demonstrating the significant effectiveness of the energy-saving measures.

3. Establish the energy efficiency assessment system for ocean-going vessels and voyages. In response to the problem of

high energy consumption of old ocean-going vessels the Company has established the energy efficiency assessment and

evaluation mechanism for vessels and encouraged each vessel to actively take various energy-saving measures to reduce

energy consumption. The Company has deeply explored the potential for energy conservation and emission reduction

by various management measures such as reasonable loading route optimization navigation monitoring and fuel

consumption monitoring as well as energy-saving technology renovations like hull cleaning main engine adjustment

and waste heat recovery.

4. Strengthen the R&D and application of low-carbon products and environmental protection technologies. The Company

actively promotes the R&D of low-carbon products and green technologies and has completed the conceptual design

for the application of methanol-fueled engine hybrid power system in port machinery equipment effectively reduced

the carbon emissions of equipment and further promoted the green and low-carbon development of ports. In 2024 the

Company completed the carbon footprint calculation of port machinery products such as wheel crane sorted out the

carbon footprint evaluation methods for typical wheel crane products throughout their life cycles established the carbon

footprint calculation model of products clarified the carbon emission data of each link and determined the carbon

emission benchmarks for related products throughout their life cycles.II. Fulfillment of social responsibility

(I) Separate disclosure of social responsibility report sustainability report or ESS report

√ Applicable Not applicable

Particulars about social responsibility work are presented in the 2024 Environmental Social and Governance (ESG) Report

of Shanghai Zhenhua Heavy Industries Co. Ltd. Published on the same day.(II) External donations and public welfare programs

√ Applicable Not applicable

External donations and public welfare

Amount/content Description

projects

Total investment (’0000 Yuan) 94.64 Directly provide free donations for financial support to targeted assistance areas.Including: fund (’0000 Yuan) 92

Amount equivalent to goods and materials

2.64

(’0000 Yuan)

This figure is obtained based on direct beneficiaries of all donations including

education assistance (schools) revitalization through organizations (communities)

Number of people benefited (person) 12040 employment assistance (labor transfer) and talent training and is an estimated

figure. The number of people benefiting from projects such as consumption

assistance and “aiding Xinjiang with work clothes” cannot be directly counted.ANNUAL REPORT 2024

Specific description

√ Applicable Not applicable

In 2024 ZPMC implemented the annual targeted assistance work plans carried out the assistance work solidly and took

key measures according to the actual needs of the targeted assistance areas. Total investment in external donations

and public welfare projects amounted to RMB 946400 consisting of RMB 300000 allocated by the Company to the

construction of the Zhongjiao Cuiping Street Nine-Year Compulsory Education School in Lanping County for promoting

the educational development RMB 150000 donated to the Special Education Development Fund Project of Lanping

County for awarding teachers and students assisting needy students and providing assistance to extraordinary poor

teachers RMB 236000 donated to the program “Build Your Future Dream Embark on a New Career Journey” – Xingfuli

Community in Yongchang Community Cuiping Street Lanping County for employment promotion and work innovation

to better facilitate the local employment of 11000 persons in three relocated communities of Yong’an Yongchang and

Yongtai in Cuiping Street Lanping County RMB 94000 invested to assist the Organization Department of the Lanping

County Committee in talent training RMB 20000 donated to the Yong’an Community – the party building partner for

community construction RMB 20000 donated by its affiliates in cash to the designated area in Lanping County Yunnan

Province and RMB 26400 (88 warm wears) donated to the community patrol team in the poverty alleviation resettlement

area through the Human Resources and Social Security Bureau of Lanping County.In March 2024 the Youth League Committee of the Company in collaboration with the Youth League Committee

of Lanping County launched a one-to-one sponsorship activity for primary schools in Lanping County Nujiang Lisu

Autonomous Prefecture Yunnan Province bringing hope and strength to needy pupils. During this activity over 600

participators contributed RMB 100000 which will be used to support 20 students from Lanping County Yunnan Province

over a period of three years.III. Specific work on consolidating and expanding the progress in poverty alleviation and

rural revitalization

√ Applicable Not applicable

Item of poverty alleviation and

Amount/content Description

rural revitalization

Include direct investment into gratuitous assistance funds introduction of

Total investment (’0000 Yuan) 273 assistance funds purchase and sale of agricultural products and ordering of work

clothes from targeted assistance areas etc.Including: fund (’0000 Yuan) 80 Directly provide financial support to targeted assistance areas.Amount equivalent to goods and Include purchase and sale of agricultural products in targeted assistance areas

193

materials (’0000 Yuan) ordering of work clothes and donations in kind.This figure is obtained based on direct beneficiaries of all donations including

education assistance (schools) revitalization through organizations (communities)

Number of people benefited (person) 12040 employment assistance (labor transfer) and talent training and is an estimated

figure. The number of people benefiting from projects such as consumption

assistance and “aiding Xinjiang with work clothes” cannot be directly counted.Investigation and guidance

The Company conducted on-site survey held special work meetings on targeted

Fo r m s o f a s s i s t a n c e ( s u c h a s capital investment talents

assistance invested funds helped create job opportunities trained grassroots

development of local industr y and employment support

cadres and rural revitalization leaders paried with the Yong’an Community Party

c r e a t i n g j o b o p p o r t u n i t i e s boosting the consumption

Committee purchased and sold agricultural products and customized work clothes

improving education) of products from poor areas

from targeted assistance areas etc.Party building pairing

Specific description

√ Applicable Not applicable

In 2024 the Company’s Party Committee earnestly studied and implemented the guidelines of General Secretary Xi

Jinping’s important speeches and directives on rural revitalization effectively carried out the annual targeted assistance

work plan and actively advanced various support initiatives for Lanping County. The Company continued to promote

assistance measures under key themes such as “education improvement” “revitalization through talents development”Section V Environmental and Social Responsibility

“revitalization through organizations” and “industry revitalization”. On November 28 2024 the Company visited Lanping

County Nujiang Prefecture Yunnan Province to investigate the targeted assistance work. During the visit the Party

Branch of the Headquarters’ Party Affairs Department held a joint discussion meeting with the Party Committee of

Yong’an Community on paired organizational development. In 2024 the Company trained 100 grassroots-level officials

and 40 rural revitalization leaders in Lanping County. Shanghai Zhenhua Heavy Industries Co. Ltd. Changxing Branch

facilitated the transfer and employment of 198 individuals from the assisted region throughout the year all of whom have

achieved stable employment in their respective positions.ANNUAL REPORT 2024

Section VI Important Events

I. Fulfillment of commitments

(I) Commitments of the Company’s actual controller shareholders related parties and acquirer as well

as the Company during the reporting period or ongoing at the period-end

√ Applicable Not applicable

Describe Describe

Is there any It the specific further plans

Commitment Commitment Commitment Commitment Commitment time limit for Commitment commitment reasons for in case of

background type party contents time commitment term completed in failure of failure of

performance time commitment commitment

performance performance

No loans loan guarantees or any other form

Terminattion

of financial support will be provided to the December 26

Others Company Yes date of Yes N/A N/A

incentive objects for the exercise of stock 2023

incentive plan

options granted under this incentive plan.If the Company has false records misleading

Commitments s t a t e m e n t s o r m a j o r o m i s s i o n s i n t h e

related information disclosure documents resulting in

to equity non-compliance with the grant of equity or the

incentives Termination Incentive exercise of equity arrangements the incentive December 26

Others Yes date of Yes N/A N/A

object objects shall return all the benefits obtained 2023

incentive plan

from this incentive plan to the Company

after false records misleading statements or

major omissions in the information disclosure

documents are confirmed.(II) If there is earnings forecast for the assets or projects of the Company and the reporting period is

still in the earnings forecast period the Company shall explain whether the asset or project reaches the

original earnings forecast and give the reasons.Yes No √ Not applicable

(III) Fulfillment of commitments on the performance and its impacts on goodwill impairment test

Applicable √ Not applicable

II. Non-operating funds occupied by the holding shareholder and other related parties during

the reporting period

Applicable √ Not applicable

III. Irregularities in the provision of guarantees

Applicable √ Not applicableIV. Explanation of the board of directors for Accounting Firm’s “auditors’ report withnonstandard opinions”

Applicable √ Not applicableSection VI Important Events

V. Analysis and explanation of the Company of the causes and the impacts of the major changes

in accounting policies and accounting estimates or correction of significant accounting errors

(I) Analysis and explanation of the Company on the causes and the impacts of the changes in accounting

policies and accounting estimates

Applicable √ Not applicable

(II) Analysis and explanation of the cause of correction of significant accounting errors and their impacts

by the Company

Applicable √ Not applicable

(III) Communication with former CPA firm

Applicable √ Not applicable

(IV) Approval procedures and other explanations

Applicable √ Not applicable

VI. Engagement and dismissal of the public accounting firm

Unit: Yuan Currency: CNY

Now engaging

Name of the domestic accounting firm Ernst & Young Hua Ming LLP

Remuneration of the domestic accounting firm 4850000

Audit term of the domestic accounting firm 9

Name of Certified Public Accountant of the domestic accounting firm Gao Chong Huang Hongwei

Cumulative years of audit services provided by CPAs of the domestic accounting firm 3 1

Name Remuneration

Accounting firm performing internal control audit Ernst & Young Hua Ming LLP 450000

Particulars about the engagement and dismissal of the accounting firm

√ Applicable Not applicable

At the 33th meeting of the Eighth Board of Directors and 19th meeting of the Eighth Board of Supervisors of the Company

held on April 29 2024 and the 2023 Annual General Meeting of Shareholders held on June 17 2024 the Company

reviewed and approved the “Proposal on the Engagement of Domestic Audit Accounting Firm for the Year 2024” and

agreed to renew the engagement of Ernst & Young Hua Ming LLP as the domestic auditing firm of the Company for the

year 2024.Particulars about reappointment of the accounting firm in the auditing period

Applicable √ Not applicable

Explanation of audit fees decreased by 20% or more compared with the previous year

Applicable √ Not applicable

VII. Delisting risk

(I) Reasons for the delisting risk warning

Applicable √ Not applicableANNUAL REPORT 2024

(II) Countermeasures to be taken by the Company

Applicable √ Not applicable

(III) Termination of the listing and its reasons

Applicable √ Not applicable

VIII. Events related to bankruptcy and reorganization

Applicable √ Not applicable

IX. Major lawsuit and arbitration issues

√ The Company was involved in material litigation and arbitration matters in the fiscal year.The Company was not involved in any material litigation or arbitration matters in the fiscal year.(I) Lawsuit and arbitration already disclosed in provisional announcement without follow-up progress

Applicable √ Not applicable

(II) Lawsuit and arbitration not disclosed in provisional announcement or with follow-up progress

√ Applicable Not applicable

Unit:’0000 Yuan Currency: CNY

In the reporting period:

Estimated

liabilities

Party Type of Amount Results of Execution of

and amount Progress

Plaintiff Defendant bearing lawsuit Background of the lawsuit involved the lawsuit adjudication

caused by in lawsuit

(applicant) (respondent) joint and (arbitration) in lawsuit (arbitration) and of lawsuit

lawsuit (arbitration)

liabilities arbitration (arbitration) impacts (arbitration)

(arbitration)

or not

The first item

of the first

judgment of the

At the end of February 2014

Shanghai High

the Company completed the

People’s Court

acquisition of the former Jiangsu

was affirmed; the

Daoda Ocean Engineering Co.second to fifth

Ltd through capital increase

items of the first

and held 67% of the shares. At

judgment were On June 3

the same time it was agreed

reversed; the three 2024 this case

that the losses of the company

defendants were was ruled to

w a s b o r n e b y t h e f o r m e r

Shanghai ordered to pay be concluded

shareholders including Nantong On March

Zhenhua the total costs and and all the

Huafu Port Co. Ltd Li Aidong 29 2022 the

Heavy Nantong damages of RMB principal and

a n d Z h a o X i a o h u a b e f o r e Supreme

Industries Huafu Port Co. 27434000 and interest of the

February 28 2014. During the People’s

Co. Ltd and Ltd Li Aidong None Lawsuit 36872.21 0 the corresponding legally effective

subsequent business process it Court issued

ZPMC Qidong and Zhao overdue interest judgment

was found that the former Daoda a final

Marine Xiaohua to ZPMC amount were

Company untruthfully disclosed judgment on

Engineering Qidong Marine recovered

some matters of lawsuit or debts the case.Co. Ltd. Engineering Co. approximately

resulting in a series of losses

Ltd.; the first trial RMB

of the Company. Through the

verdict that the 38932600 in

related audit and readjustment

respondents total.etc. it was deemed that the loss

should

of RMB 368.7221 million Yuan

compensate

should be in borne in the former

Shanghai Zhenhua

shareholders and the lawsuit

Heavy Industries

was prosecuted again after an

Co. Ltd of RMB

inconclusive press for payment.

1 million for the

breach of contract

was affirmed.Section VI Important Events

(III) Other description

Applicable √ Not applicable

X. Punishments on the Company as well as its directors supervisors senior executives

controlling shareholder and actual controller for violation of laws or regulations as well as

the relevant rectifications

Applicable √ Not applicable

XI. Particulars about the credit standings of the Company and its controlling shareholder and

the actual controller during the reporting period

Applicable √ Not applicable

XII. Material related transactions

(I) 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

At the 9th meeting of the Eighth Board of Directors of the Company held on April 13 2022 and the 2021 Annual GeneralMeeting of Shareholders held on June 27 2022 the Company reviewed and approved the “Proposal on Reviewing theSigning of Framework Agreement on Routine Related Transactions for 2022-2024” which had been announced and was

detailed in Extraordinary Announcement No. 2022-004 2022-008 2022-017 2023-008 and 2024-014.Unit: Yuan Currency: CNY

Pricing Reason or great Type of Content principle Price of related Amount

Proportion in Settlement differences

Related party Relationship related of related of related transaction of related

the amount mode of

transaction transaction transaction of similar associated

Market price between the

transaction transactions (%) transaction bargain price and market price

China Harbour Engineering Subsidiary of the holding parent Sales of Project income/ Pricing based Co. Ltd. goods lease of assets on market price 893169261 893169261 2.59 Monetary funds 893169261 /company

Road & Bridge International Subsidiary of the holding parent Sales of Project income/ Pricing based Co. Ltd. goods lease of assets on market price 618816864 618816864 1.80 Monetary funds 618816864 /company

CCCC Second Harbor Subsidiary of the Sales of Project income/ Pricing based

Engineering Co. Ltd. holding parent goods lease of assets on market price 417029958 417029958 1.21 Monetary funds 417029958 /company

CCCC Electrical and Mechanical Subsidiary of the holding parent Sales of Project income/ Pricing based Engineering Co. Ltd. company goods lease of assets on market price

396222550 396222550 1.15 Monetary funds 396222550 /

CCCC National Engineering

Research Center of Dredging Subsidiary of the

Technology and Equipment holding parent

Sales of Project income/ Pricing based

goods lease of assets on market price 296273935 296273935 0.86 Monetary funds 296273935 /

Co. Ltd. company

Subsidiary of the

CCCC Financial Leasing Co. Ltd. holding parent Sales of Project income/ Pricing based goods lease of assets on market price 200708000 200708000 0.58 Monetary funds 200708000 /company

CCCC Second Highway Subsidiary of the holding parent Sales of Project income/ Pricing based Engineering Co. Ltd. goods lease of assets on market price 87417725 87417725 0.25 Monetary funds 87417725 /company

CCCC Third Harbor Engineering Subsidiary of the holding parent Sales of Project income/ Pricing based Co. Ltd. company goods lease of assets on market price

87262341 87262341 0.25 Monetary funds 87262341 /ANNUAL REPORT 2024

Pricing Proportion in Settlement Reason or great Type of Content

Related party Relationship related of related principle Price of related

Amount the amount mode of differences

of related transaction of related of similar associated Market price between the transaction transaction transaction transaction transactions (%) transaction bargain price and market price

CCCC Tianhe Mechanical Subsidiary of the

Equipment Manufacturing Co. holding parent Sales of Project income/ Pricing based goods lease of assets on market price 61597879 61597879 0.18 Monetary funds 61597879 /Ltd. company

China Road & Bridge Subsidiary of the holding parent Sales of Project income/ Pricing based Corporation goods lease of assets on market price 42195263 42195263 0.12 Monetary funds 42195263 /company

CCCC First Harbor Engineering Subsidiary of the

Co. Ltd. holding parent

Sales of Project income/ Pricing based

goods lease of assets on market price 17308083 17308083 0.05 Monetary funds 17308083 /company

CCCC Third Highway Subsidiary of the Sales of Project income/ Pricing based

Engineering Co. Ltd. holding parent company goods lease of assets on market price

15875271 15875271 0.05 Monetary funds 15875271 /

CCCC Shanghai Equipment Subsidiary of the

Engineering Co. Ltd. holding parent

Sales of Project income/ Pricing based

company goods lease of assets on market price

15362832 15362832 0.04 Monetary funds 15362832 /

Subsidiary of the

Friede & Goldman Llc. holding parent Sales of Project income/ Pricing based goods lease of assets on market price 11542840 11542840 0.03 Monetary funds 11542840 /company

No.1 Engineering Co. Ltd. of Subsidiary of the

CCCC First Harbor Engineering holding parent Sales of Project income/ Pricing based

Co. Ltd. company goods lease of assets on market price

7765487 7765487 0.02 Monetary funds 7765487 /

Road and Bridge Construction Subsidiary of the

Chongqing Fengfu Expressway holding parent Sales of Project income/ Pricing based goods lease of assets on market price 1949610 1949610 0.01 Monetary funds 1949610 /Development Co. Ltd. company

CCCC Worldcom (Chongqing) Subsidiary of the Sales of Project income/ Pricing based

Heavy Industries Co. Ltd. holding parent company goods lease of assets on market price

1868009 1868009 0.01 Monetary funds 1868009 /

Chongqing Zhongwan Subsidiary of the holding parent Sales of Project income/ Pricing based Expressway Co. Ltd. goods lease of assets on market price 1669662 1669662 0.00 Monetary funds 1669662 /company

Road and Bridge Construction

Chongqing Fengshi Subsidiary of the holding parent Sales of Project income/ Pricing based Expressway Development Co. goods lease of assets on market price 1214260 1214260 0.00 Monetary funds 1214260 /

Ltd. company

Yueyang Chenglingji New Port Subsidiary of the

Co. Ltd. holding parent

Sales of Project income/ Pricing based

goods lease of assets on market price 868903 868903 0.00 Monetary funds 868903 /company

No.2 Engineering Co. Ltd. of Subsidiary of the

CCCC First Harbor Engineering holding parent Sales of Project income/ Pricing based

Co. Ltd. company goods lease of assets on market price

830189 830189 0.00 Monetary funds 830189 /

CCCC Photovoltaic Technology Associated Sales of Project income/ Pricing based

Co. Ltd. company goods lease of assets on market price 305825 305825 0.00 Monetary funds 305825 /

CCCC First Highway Subsidiary of the

Electrification Engineering Co. holding parent Sales of Project income/ Pricing based

Ltd. company goods lease of assets on market price

87270 87270 0.00 Monetary funds 87270 /

Chongqing Yongjiang

Expressway Investment and Subsidiary of the Sales of Project income/ Pricing based

Construction Co. Ltd. of FHEC holding parent goods lease of assets on market price 8095 8095 0.00 Monetary funds 8095 /

of CCCC company

Jiangsu CCCC Green Energy Subsidiary of the

Photovoltaic Technology Co. holding parent Rendering of Project income/ Pricing based 12005642 12005642 0.03 Monetary funds 12005642 /

Ltd. company service lease of assets on market price

CCCC Third Harbor Engineering Subsidiary of the holding parent Rendering of Project income/ Pricing based Co. Ltd. service lease of assets on market price 11929732 11929732 0.03 Monetary funds 11929732 /company

Zhejiang Lvzhou Photovoltaic Subsidiary of the holding parent Rendering of Project income/ Pricing based Technology Co. Ltd. service lease of assets on market price 9128920 9128920 0.03 Monetary funds 9128920 /company

CCCC Photovoltaic Technology Associated Rendering of Project income/ Pricing based

Co. Ltd. company service lease of assets on market price 2550323 2550323 0.01 Monetary funds 2550323 /

CCCG Holding parent Rendering of Project income/ Pricing based company service lease of assets on market price 1603774 1603774 0.00 Monetary funds 1603774 /

China Communications Subsidiary of the

Construction Company Ltd. holding parent

Rendering of Project income/ Pricing based

company service lease of assets on market price

1396226 1396226 0.00 Monetary funds 1396226 /

Subsidiary of the

CCCC Financial Leasing Co. Ltd. holding parent Rendering of Project income/ Pricing based

company service lease of assets on market price

796519 796519 0.00 Monetary funds 796519 /Section VI Important Events

Pricing Proportion in Settlement Reason or great Type of Content Amount

Related party Relationship related of related principle Price of related of related the amount mode of

differences

transaction transaction of related transaction transaction of similar associated

Market price between the

transaction transactions (%) transaction bargain price and market price

CCCC Shanghai Equipment Subsidiary of the

Engineering Co. Ltd. holding parent

Rendering of Project income/ Pricing based

company service lease of assets on market price

640129 640129 0.00 Monetary funds 640129 /

China Communications Subsidiary of the

Information Technology Group holding parent Rendering of Project income/ Pricing based

Co. Ltd. company service lease of assets on market price

604127 604127 0.00 Monetary funds 604127

Yueyang Chenglingji New Port Subsidiary of the

Co. Ltd. holding parent

Rendering of Project income/ Pricing based

service lease of assets on market price 73451 73451 0.00 Monetary funds 73451company

CCCC Shanghai Equipment Subsidiary of the Receipt Consigned holding parent of labor processing for Pricing based Engineering Co. Ltd. on market price 654818621 654818621 2.18 Monetary funds 654818621 /company services the Company

CCCC Third Highway Subsidiary of the Receipt Consigned holding parent of labor processing for Pricing based Engineering Co. Ltd. on market price 633389429 633389429 2.11 Monetary funds 633389429 /company services the Company

CCCC First Highway Subsidiary of the Receipt Consigned Pricing based

Engineering Co. Ltd. holding parent of labor processing for on market price 164687077 164687077 0.55 Monetary funds 164687077 /company services the Company

CCCC Dredging (Group) Co. Subsidiary of the Receipt Consigned

Ltd. holding parent of labor processing for

Pricing based

company services the Company on market price

93888244 93888244 0.31 Monetary funds 93888244 /

No.3 Engineering Co. Ltd. of Subsidiary of the Receipt Consigned

CCCC Third Harbor Engineering holding parent of labor processing for Pricing based on market price 72975728 72975728 0.24 Monetary funds 72975728 /Co. Ltd. company services the Company

China Communications Subsidiary of the Receipt Consigned

Information Technology Group holding parent of labor processing for Pricing based

Co. Ltd. company services the Company on market price

46315012 46315012 0.15 Monetary funds 46315012 /

Road & Bridge International Subsidiary of the Receipt Consigned

Co. Ltd. holding parent of labor processing for

Pricing based

on market price 44462018 44462018 0.15 Monetary funds 44462018 /company services the Company

CCCC Second Harbor Subsidiary of the Receipt Consigned

Engineering Co. Ltd. holding parent of labor processing for

Pricing based

company services the Company on market price

39671589 39671589 0.13 Monetary funds 39671589 /

Subsidiary of the Receipt Consigned

CCCC Tianjin Dredging Co. Ltd. holding parent of labor processing for Pricing based 20914058 20914058 0.07 Monetary funds 20914058 /

company services the Company on market price

Installation Engineering Co. Subsidiary of the Receipt Consigned

Ltd. of CCCC First Harbor holding parent of labor processing for Pricing based on market price 18026376 18026376 0.06 Monetary funds 18026376 /Engineering Co. Ltd. company services the Company

CCCC Road & Bridge South Subsidiary of the Receipt Consigned Pricing based

China Engineering Co. Ltd. holding parent of labor processing for 13345083 13345083 0.04 Monetary funds 13345083 /company services the Company on market price

CCCC Yancheng Construction Associated Receipt Consigned

Development Co. Ltd. company of labor processing for

Pricing based

on market price 13326441 13326441 0.04 Monetary funds 13326441 /services the Company

CCCC Urban Operation Subsidiary of the Receipt Consigned

Management Co. Ltd. holding parent of labor processing for

Pricing based

on market price 11246696 11246696 0.04 Monetary funds 11246696 /company services the Company

Road & Bridge East China Subsidiary of the Receipt Consigned

Engineering Co. Ltd. holding parent of labor processing for

Pricing based

on market price 9651703 9651703 0.03 Monetary funds 9651703 /company services the Company

CCCC Water Transportation Subsidiary of the Receipt Consigned

Planning and Design Institute holding parent of labor processing for Pricing based on market price 6812868 6812868 0.02 Monetary funds 6812868 /Co. Ltd. company services the Company

No.2 Engineering Co. Ltd. of Subsidiary of the Receipt Consigned

CCCC Third Harbor Engineering holding parent of labor processing for Pricing based 6519213 6519213 0.02 Monetary funds 6519213 /

Co. Ltd. company services the Company on market price

CCCC Third Harbor Engineering Subsidiary of the Receipt Consigned

Co. Ltd. holding parent of labor processing for

Pricing based

company services the Company on market price

5271531 5271531 0.02 Monetary funds 5271531 /

CCCC Third Harbor Consultants Subsidiary of the Receipt Consigned

Co. Ltd. holding parent of labor processing for

Pricing based

company services the Company on market price

4510883 4510883 0.02 Monetary funds 4510883 /

CCCC Shanghai Dredging Co. Subsidiary of the Receipt Consigned

Ltd. holding parent of labor processing for

Pricing based

on market price 4111035 4111035 0.01 Monetary funds 4111035 /company services the Company

CCCC Second Highway Subsidiary of the Receipt Consigned Pricing based

Engineering Co. Ltd. holding parent of labor processing for 2653341 2653341 0.01 Monetary funds 2653341 /company services the Company on market priceANNUAL REPORT 2024

Pricing Proportion in Settlement Reason or great Type of Content Amount differences

Related party Relationship related of related principle Price of related of related the amount mode of

transaction transaction of related transaction of similar associated

Market price between the

transaction transaction transactions (%) transaction bargain price and market price

CCCC Wuhan Zhixing Subsidiary of the Receipt Consigned

International Engineering holding parent of labor processing for Pricing based

Consulting Co. Ltd. company services the Company on market price

1725000 1725000 0.01 Monetary funds 1725000 /

Jiangmen Hangtong

Shipbuilding Co. Ltd. of CCCC Subsidiary of the Receipt Consigned

Fourth Harbor Engineering Co. holding parent of labor processing for

Pricing based

on market price 1071000 1071000 0.00 Monetary funds 1071000 /

Ltd. company services the Company

CCCC Property Service Co. Ltd. Subsidiary of the Receipt Consigned

Shanghai Branch holding parent of labor processing for

Pricing based

on market price 909138 909138 0.00 Monetary funds 909138 /company services the Company

CCCC (Xiamen) Information Subsidiary of the Receipt Consigned

Co. Ltd holding parent of labor processing for

Pricing based

on market price 858209 858209 0.00 Monetary funds 858209 /company services the Company

CNPC & CCCC Petroleum Sales Subsidiary of the Receipt Consigned

Co. Ltd. holding parent of labor processing for

Pricing based

on market price 852870 852870 0.00 Monetary funds 852870 /company services the Company

Tianjin Harbour Engineering Subsidiary of the Receipt Consigned

Quality Inspection Center Co. holding parent of labor processing for Pricing based on market price 480679 480679 0.00 Monetary funds 480679 /Ltd. company services the Company

Xiamen Jiehang Engineering Subsidiary of the Receipt Consigned holding parent of labor processing for Pricing based Testing Technology Co. Ltd. on market price 440000 440000 0.00 Monetary funds 440000 /company services the Company

CCCC Worldcom (Chongqing) Subsidiary of the Receipt Consigned

Heavy Industries Co. Ltd. holding parent of labor processing for

Pricing based

company services the Company on market price

410949 410949 0.00 Monetary funds 410949 /

CCCC Design Consulting Group Subsidiary of the Receipt Consigned

Co. Ltd. holding parent of labor processing for

Pricing based

on market price 250000 250000 0.00 Monetary funds 250000 /company services the Company

Subsidiary of the Receipt Consigned

CCCC Property Service Co. Ltd. holding parent of labor processing for Pricing based on market price 198383 198383 0.00 Monetary funds 198383 /company services the Company

CCCC Photovoltaic Technology Associated Receipt Consigned

Co. Ltd. company of labor processing for

Pricing based

on market price 146526 146526 0.00 Monetary funds 146526 /services the Company

Shanghai China

Communications Water Subsidiary of the Receipt Consigned

Transportation Design & holding parent of labor processing for

Pricing based

on market price 99000 99000 0.00 Monetary funds 99000 /

Research Co. Ltd. company services the Company

CCCC Xingyu Technology Co. Subsidiary of the Receipt Consigned

Ltd holding parent of labor processing for

Pricing based

on market price 96600 96600 0.00 Monetary funds 96600 /company services the Company

Chuwa Risheng (Beijing) Subsidiary of the Receipt Consigned

International Trade Co. Ltd. holding parent of labor processing for

Pricing based

company services the Company on market price

9600 9600 0.00 Monetary funds 9600 /

CCCC Shanghai Equipment Subsidiary of the Providing

Engineering Co. Ltd. holding parent

Purchase of

goods materials for

Pricing based

company the Company on market price

346647152 346647152 1.15 Monetary funds 346647152 /

CCCC Tianjin Industry and Subsidiary of the Purchase of Providing

Trade Co. Ltd. holding parent goods materials for

Pricing based

on market price 101942200 101942200 0.34 Monetary funds 101942200 /company the Company

CNPC & CCCC Petroleum Sales Subsidiary of the Providing

Co. Ltd. holding parent

Purchase of materials for Pricing based 56320793 56320793 0.19 Monetary funds 56320793 /

company goods the Company on market price

CCCC Dredging (Group) Co. Subsidiary of the holding parent Purchase of

Providing

Ltd. goods materials for

Pricing based

on market price 35652451 35652451 0.12 Monetary funds 35652451 /company the Company

China Communications Subsidiary of the Providing

Information Technology Group holding parent Purchase of Pricing based goods materials for on market price 26936300 26936300 0.09 Monetary funds 26936300 /Co. Ltd. company the Company

CCCC (Xiamen) Information Subsidiary of the Purchase of Providing

Co. Ltd holding parent goods materials for

Pricing based

on market price 24551227 24551227 0.08 Monetary funds 24551227 /company the Company

CCCC Second Highway Subsidiary of the Purchase of Providing Pricing based

Engineering Co. Ltd. holding parent goods materials for on market price 13346205 13346205 0.04 Monetary funds 13346205 /company the Company

CCCC Wuhan Zhixing Subsidiary of the Providing

International Engineering holding parent Purchase of goods materials for

Pricing based 9324480 9324480 0.03 Monetary funds 9324480 /

Consulting Co. Ltd. company the Company on market priceSection VI Important Events

Pricing Proportion in Settlement Reason or great Type of Content Amount

Related party Relationship related of related principle Price of related of related the amount mode of

differences

transaction transaction of related transaction transaction of similar associated

Market price between the

transaction transactions (%) transaction bargain price and market price

CCCC First Highway Subsidiary of the holding parent Purchase of

Providing

Engineering Co. Ltd. goods materials for

Pricing based

on market price 8443812 8443812 0.03 Monetary funds 8443812 /company the Company

Jiangmen Hangtong

Shipbuilding Co. Ltd. of CCCC Subsidiary of the Providing

Fourth Harbor Engineering Co. holding parent

Purchase of materials for Pricing based goods on market price 6221659 6221659 0.02 Monetary funds 6221659 /

Ltd. company the Company

Shanghai Zhensha Longfu Subsidiary of the Providing

Machinery Co. Ltd. holding parent

Purchase of materials for Pricing based

company goods the Company on market price

6194242 6194242 0.02 Monetary funds 6194242 /

Installation Engineering Co. Subsidiary of the Providing

Ltd. of CCCC First Harbor holding parent Purchase of goods materials for

Pricing based

on market price 4607547 4607547 0.02 Monetary funds 4607547 /Engineering Co. Ltd. company the Company

CCCC Shanghai Dredging Co. Subsidiary of the Providing

Ltd. holding parent

Purchase of

goods materials for

Pricing based

company the Company on market price

4036870 4036870 0.01 Monetary funds 4036870 /

CCCC Urban Operation Subsidiary of the Purchase of Providing Pricing based

Management Co. Ltd. holding parent goods materials for company the Company on market price

1133933 1133933 0.00 Monetary funds 1133933 /

Subsidiary of the Providing

CCCC Tianjin Dredging Co. Ltd. holding parent Purchase of materials for Pricing based goods on market price 767890 767890 0.00 Monetary funds 767890 /company the Company

China Communications Subsidiary of the Purchase of Providing

Materials Co. Ltd. holding parent goods materials for

Pricing based 614197 614197 0.00 Monetary funds 614197 /

company the Company on market price

CCCC Yancheng Construction Associated Purchase of Providing materials for Pricing based Development Co. Ltd. company goods the Company on market price

611451 611451 0.00 Monetary funds 611451 /

CCCC Design Consulting Group Subsidiary of the Purchase of Providing

Co. Ltd. holding parent goods materials for

Pricing based 518091 518091 0.00 Monetary funds 518091 /

company the Company on market price

Shanghai Communications Subsidiary of the

Construction Contracting Co. holding parent Purchase of

Providing

goods materials for

Pricing based

Ltd. company the Company on market price

444158 444158 0.00 Monetary funds 444158 /

CCCC Jetport Construction Subsidiary of the holding parent Purchase of

Providing

materials for Pricing based Technology (Shanghai) Co. Ltd. goods on market price 395000 395000 0.00 Monetary funds 395000 /company the Company

Subsidiary of the Providing

CCCC Property Service Co. Ltd. holding parent Purchase of goods materials for

Pricing based

on market price 198383 198383 0.00 Monetary funds 198383 /company the Company

Chuwa Risheng (Beijing) Subsidiary of the Purchase of Providing

International Trade Co. Ltd. holding parent goods materials for

Pricing based

on market price 48904 48904 0.00 Monetary funds 48904 /company the Company

Total / / 5741180800 / / /

Details of large amount of sales returnsThe Company reviewed and approved the “Proposal on Reviewing the Signing of FrameworkAgreement on Routine Related Transactions for 2022- 2024” at the 2021 Annual General Meeting ofShareholders. Subsequently on March 29 2024 the Company disclosed the “Announcement on theEstimated Routine Related-Party Transactions for 2024” (Extraordinary Announcement No. 2024-014)

Explanation for related transactions providing projections for routine related-party transactions throughout 2024. In 2024 the amount of

the annual related transactions in the normal business between the Company and its subsidiaries and

CCCG and its subsidiaries was about RMB 5.741 billion which did not exceed the upper limit of the

amount of routine related transactions approved by the 2021 Annual General Meeting of Shareholders

and the expcted upper limit of the amount of routine related transactions in 2024.

3. Events not disclosed in provisional announcements

Applicable √ Not applicable

(II) Related transactions arising from acquisition or offering of assets or stock equity

1. Events disclosed in provisional announcement without progress or changes in follow-up implementation

Applicable √ Not applicableANNUAL REPORT 2024

2. Events disclosed in the provisional announcement with progress or changes in follow-up implementation

√ Applicable Not applicable

1. On March 28 2024 the 32nd meeting of the Eighth Board of Directors and the 18th meeting of the Eighth Board ofSupervisors separately reviewed and approved the “Proposal for Review of the Associated Transaction Involving theTransfer of 17.21% Equity Interest in CCCC South America Regional Company by Zhenhua Heavy Industries” agreeing

Zhenhua Heavy Industries transferring its 17.21% equity interest in CCCC South America Regional Company to China

Communications Construction by means of a non-public agreement at a consideration of approximately RMB 183698100.For more details see the relevant announcement disclosed by the company on March 29 2024 through the Shanghai

Stock Exchange website (www.sse.com.cn) and designated information disclosure media (Extraordinary Announcement

No. 2024-013). During the reporting period the company completed the signing of the transaction agreement with China

Communications Construction and received corresponding payment as provided in the agreement.

2. On December 25 2024 the 8th meeting of the Ninth Board of Directors and the 6th meeting of the Ninth Board ofSupervisors separately reviewed and approved the “Proposal for Review of the Capital Reduction and Related PartyTransactions of CCCC Zhenjiang Investment Construction Management and Development Co. Ltd.” agreeing the

capital reduction of CCCC Zhenjiang Investment Construction Management and Development Co. Ltd. (hereinafter

referred to as the “Project Company”) and corresponding adjustment of shareholding proportions. After discussions

among all shareholders of the Project Company it was proposed to reduce the registered capital from RMB 597520000

to RMB 100000000 and adjust the shareholding proportions accordingly. Upon completion of this capital reduction

Zhenhua Heavy Industries’ capital contribution would decrease from RMB 376440000 to RMB 70000000 while its

shareholding would increase from 63% to 70%. For more details see the relevant announcement disclosed by the

company on December 26 2024 through the Shanghai Stock Exchange website (www.sse.com.cn) and designated

information disclosure media (Extraordinary Announcement No. 2024-062). The company completed the signing of the

capital reduction agreement with other shareholders of the Project Company and received the agreed capital reduction

payment.

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

(III) Material related transactions with joint external investments

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

(IV) Current associated rights of credit and liabilities

1. Events disclosed in provisional announcement without progress or changes in follow-up implementation

Applicable √ Not applicableSection VI Important Events

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

(V) Financial business between the Company and related finance companies or between finance

companies under the Company’s control and related parties

√ Applicable Not applicable

1. Deposit business

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount incurred in the current period

Related Maximum Deposit December 31

Relationship daily deposit interest rate Total deposit Total withdrawal

December 31

parties 2023limit range amount in the amount in the

2024

current period current period

CCCC Finance Subsidiary of the holding

20000000000.46%-1.55%160000000025953113297258331939151719919382

Company Ltd. parent company

Total / / / 1600000000 25953113297 25833193915 1719919382

2. Loan business

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount incurred in the current period

Related Loan interest December December 31

Relationship Loan limit Total loan amount Total repayment

parties rate range 31 2023 in the current amount in the 2024

period current period

CCCC Finance Subsidiary of the holding

20000000001%-2%69284000036840000148840000580840000

Company Ltd. parent company

Total / / / 692840000 36840000 148840000 580840000.00

3. Credit business or other financial business

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Related parties Relationship Business type Total amount Actual amount incurred

Subsidiary of the holding parent

CCCC Finance Company Ltd. Credit 2000000000 814950000

company

Subsidiary of the holding parent

CCCC Xiongan Financial Leasing Co. Ltd. Factoring 140000000 0

company

4. Other description

Applicable √ Not applicable

(VI) Others

Applicable √ Not applicableANNUAL REPORT 2024

XIII. Material contracts and their performance

(I) Trusteeship contracting and leasing matters

1. Trusteeship

Applicable √ Not applicable

2. Contracting

Applicable √ Not applicable

3. Leasing

√ Applicable Not applicable

Unit:’0000 Yuan Currency: CNY

Amount Basis for Impacts of

Starting Termination Income Related

Name of Name of Leased involved determining income from

date of date of from transaction Relationship

lessor lessee assets in leased income from leasing on

leasing leasing leasing or not

assets leasing the Company

Shanghai Shanghai

Zhenhua Zhenlong

Lease of August

Heavy Asset 19684.89 July 09 2025 4267.05 Agreed 4267.05 No

houses 10 2012

Industries Management

Co. Ltd. Co. Ltd.Shanghai Shanghai

Zhenhua Changyin

Lease of March 01 February 28

Heavy Real Estate 11584.34 3045.00 Agreed 3045.00 No

houses 2021 2025

Industries Development

Co. Ltd. Co. Ltd.Shanghai

Shanghai

Zhenhua

Changyi Lease of August August 14

Heavy 682.88 2139.70 Agreed 2139.70 No

Industrial Co. houses 15 2021 2031

Industries

Ltd

Co. Ltd.Leasing explanation

None

(II) Guarantee

√ Applicable Not applicable

Unit: Yuan Currency: CNY

External guarantee of the Company (excluding guarantee to the subsidiaries)

Relation

between Date of

Fulfillment Guarantee

the guarantee Guarantee Amount of Counter

Guaranteed Guaranteed Guarantee Type of Collateral of the Overdue by the

Guarantor guarantor (signing Maturity overdue guarantee Relationship

party amount start date guarantee (if any) guarantee or not related

and the date of date guarantee or not

or not party or not

listed agreement)

company

Total amount of guarantee incurred during the reporting period (excluding guarantee to the

subsidiaries)

Total balance of guarantee at the end of the reporting period (A) (excluding guarantee to the

subsidiaries)

Guarantee of the Company and its subsidiaries to the subsidiaries

Total amount of guarantee to the subsidiaries incurred during the reporting period 252298796.10

Total balance of guarantee to the subsidiaries at the end of the reporting period (B) 502715842.24Section VI Important Events

External guarantee of the Company (excluding guarantee to the subsidiaries)

Relation

between Date of

Fulfillment Guarantee

the guarantee Guarantee Amount of Counter

Guaranteed Guaranteed Guarantee Type of Collateral of the Overdue by the

Guarantor guarantor (signing Maturity overdue guarantee Relationship

party amount start date guarantee (if any) guarantee or not related

and the date of date guarantee or not

or not party or not

listed agreement)

company

Total amount of guarantee of the Company (including guarantee to the subsidiaries)

Total amount of guarantee (A+B) 502715842.24

Proportion of total amount of guarantee in the net assets of the Company (%) 3.17

Including:

Amount of guarantee to the shareholders the actual controller and related parties (C)

Amount of debt guarantee directly or indirectly provided to the guaranteed party

406763788.94

with the asset-liability ratio over 70% (D)

Amount of guarantee exceeding 50% of net assets (E)

Total guarantee amount of the above three items (C+D+E) 406763788.94

Disclosure on potential joint and several liability for outstanding guarantees

At the 2023 Annual General Meeting of Shareholders the shareholders approved the Proposal on the

Company's 2024 External Guarantee Plan. It was resolved that the Company would provide guaranteesfor Shanghai Zhenhua Heavy Industries Co. Ltd. Netherlands LLC (hereinafter referred to as the “Dutchsubsidiary”) with a maximum commitment of EUR 6 million (equivalent to approximately RMB 47.16

million) for a term of two years. Furthermore Zhenhua Heavy and Large Cargo Shipping (Hong Kong)

Co. Ltd. (hereinafter referred to as the “GPO Company”) the Company’s 50%-controlled subsidiary was

authorized to extend guarantee support to its wholly-owned subsidiary up to an amount of USD 200

million (equivalent to approximately RMB 1416.54 million) for a period of five years. Additionally the

Description of the guarantees

Company resolved to provide guarantee support to Shanghai Zhenhua Korea Corporation (hereinafter

referred to as the “Korean subsidiary”) with a maximum exposure of USD 26.88 million (equivalent to

approximately RMB 190.38 million) for a term of three years.As of December 31 2024 the balance of guarantee offered by the Company to its Dutch subsidiary was

EUR 884600 (approximately RMB 6660000); the balance of guarantee offered by GPO company to its

wholly-owned subsidiary was USD 111320000 (approximately RMB 800210000) with the disclosed

guarantee amount of RMB 400110000 based on the equity ratio; balance of guarantee offered by the

Company to its South Korean subsidiary was USD 13348200 (approximately RMB 95950000).(III) Consigned cash assets management

1. Consigned financing

(1) General information of consigned financing

Applicable √ Not applicable

Other information

Applicable √ Not applicable

(2) Information on individual consigned financing

Applicable √ Not applicable

Other information

Applicable √ Not applicable

(3) Provision for impairment of consigned financing

Applicable √ Not applicable

2. Consigned loans

(1) General information of consigned loans

Applicable √ Not applicable

Other information

Applicable √ Not applicableANNUAL REPORT 2024

(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

(IV) Other material contracts

Applicable √ Not applicable

XIV. Progress statement on the utiliazation of raised funds

Applicable √ Not applicable

XV. Other significant events for investors’ judgment of value and investment decision-

making

Applicable √ Not applicableSection VII Changes in Shares and Shareholders' Situation

Section VII Changes in Shares and Shareholders' Situation

I. Changes in share capital

(I) Table of changes in shares

1. Table of changes in shares

The total number of shares of the Company and the structure of its share capital remained unchanged during the

reporting period.

2. Notes to changes in shares

Applicable √ Not applicable

3. Effect of changes in shares on financial indicators such as earnings per share and net asset per share for the

latest year and period (if any)

Applicable √ Not applicable

4. Other contents that the Company deems necessary to be disclosed or required to be disclosed by the

securities regulatory authority

Applicable √ Not applicable

(II) Changes in shares with restrictive conditions for sales

Applicable √ Not applicable

II. Issuance and listing of securities

(I) Securities issuance by the reporting period

Applicable √ Not applicable

Particulars about the issuance of securities during the reporting period (for bonds of different interest rates within the

duration please state them respectively)

Applicable √ Not applicable

(II) Changes in total shares and the shareholder structure of the Company as well as in asset and liability

structures

Applicable √ Not applicable

(III) Existing internal employee ownership

Applicable √ Not applicableANNUAL REPORT 2024

III. Shareholders and actual controller

(I) Total number of shareholders

Total of ordinary shareholders by the end of the reporting period 189123

Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report 187607

(II) Table of the shares held by top 10 shareholders top 10 holders of marketable shares (or shareholders

without trading limited conditions) by the end of reporting period

Unit: Share

Shareholdings of top ten shareholders (excluding shares lent through refinancing)

Number of Number of shares Shares in pledge marked or Changes in

Name of shareholder (Full Name) the reporting shares held at Proportion with trading

frozen Nature of

period the end of the (%) limited conditions shareholderperiod held Share status

Number of

shares

CCCG (HK) Holding Limited 0 916755840 17.401 0 None 0 Overseas legal person

China Communications Construction 0 855542044 16.239 0 None 0 State-owned Company Ltd. legal person

China Communications Construction Group

Co. Ltd. 0 663223375 12.589 0 None 0

State-owned

legal person

Hong Kong Securities Clearing Company

Limited 58690669 70524706 1.34 Unknown Unknown

Industrial and Commercial Bank of China

Limited – Zhong Ou Times Vanguard Stock 18000088 18000088 0.34 Unknown Unknown

Initiating Security Investment Fund

Dacheng Fund- Agricultural Bank of China

- Dacheng China Securities Financial Asset -1862200 17714520 0.34 Unknown Unknown

Management Plan

China Merchants Bank Co. Ltd. – South China

Securities 1000 Exchange Traded Fund 14030800 16475300 0.31 Unknown Unknown

VANGUARD EMERGING MARKETS STOCK

INDEX FUND -1617169 15271677 0.29 Unknown Unknown

VANGUARD TOTAL INTERNATIONAL STOCK

INDEX FUND 0 14924161 0.28 Unknown Unknown

Harvest Fund - Agricultural Bank of China -

Harvest financial asset management plan -634700 14350076 0.27 Unknown Unknown

Shareholdings of top ten shareholders with unrestricted tradable shares (excluding shares lent through refinancing)

Name of shareholder Number of non- restrictive

Type and number of shares

circulation shares held Type Number of shares

CCCG (HK) Holding Limited 916755840 Foreign shares listed domestically

China Communications Construction Company Ltd. 855542044 RMB ordinary shares

China Communications Construction Group Co. Ltd. 663223375 RMB ordinary shares

Hong Kong Securities Clearing Company Limited 70524706 RMB ordinary shares

Industrial and Commercial Bank of China Limited – Zhong Ou

Times Vanguard Stock Initiating Security Investment Fund 18000088 RMB ordinary shares

Dacheng Fund- Agricultural Bank of China - Dacheng China

Securities Financial Asset Management Plan 17714520 RMB ordinary shares

China Merchants Bank Co. Ltd. – South China Securities 1000

Exchange Traded Fund 16475300 RMB ordinary sharesSection VII Changes in Shares and Shareholders' Situation

Shareholdings of top ten shareholders with unrestricted tradable shares (excluding shares lent through refinancing)

Name of shareholder Number of non- restrictive

Type and number of shares

circulation shares held Type Number of shares

VANGUARD EMERGING MARKETS STOCK INDEX FUND 15271677 Foreign shares listed domestically

VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 14924161 Foreign shares listed domestically

Harvest Fund - Agricultural Bank of China - Harvest financial

asset management plan 14350076 RMB ordinary shares

Explanation of the special accounts for repurchase among the

top ten shareholders

Note to the said shareholders' entrusting voting rights

entrusted voting rights and waivered voting rights

Among the above top 10 shareholders CCCG (HK ) Holding Limited China

Communications Construction Group Co. Ltd. and China Communications Construction

Notes to the related relation or consistent actions of the above- Company Ltd. are related companies. It was unknown to the Company whether there

mentioned shareholders was related relation between other shareholders and whether they belonged to theconcerted actor specified in the “Management Method on Information Disclosure forShareholding Change of the Shareholders of Listed Companies”.Explanation on preferred stock holders with recovered voting

rights and number of stocks held by them

Participation of shareholders holding over 5% the top ten shareholders and the top ten shareholders with unrestricted

tradable shares in securities lending under the margin trading and securities lending scheme

√ Applicable Not applicable

Unit: Share

Participation of shareholders holding over 5% the top ten shareholders and the top ten shareholders with unrestricted tradable shares in

securities lending under the margin trading and securities lending scheme

Number of shares lent Number of shares lent

Ordinary and margin through refinancing Ordinary and margin through refinancing

account holding at the and not yet returned account holding at the end and not yet returned at

Name of shareholder(in full) beginning of the period at the beginning of the of the reporting period the end of the reporting

reporting period period

Total Proportion Total Proportion

Shares (%) Shares (%) Total Shares

Proportion Total Proportion

(%) Shares (%)

China Merchants Bank Co. Ltd. –

South China Securities 1000 Exchange 2444500 0.05 503500 0.01 16475300 0.31 0 0.00

Traded Fund

The top ten shareholders and the top ten unrestricted-share holders changed due to securities lending/ return compared

to the prior period

√ Applicable Not applicable

Unit: Share

The top ten shareholders and the top ten unrestricted-share holders changed due to securities lending/ return compared to the prior period

Number of shares held in shareholders’

Addition/ Number of shares lent through

withdrawal during refinancing and not yet returned at the

ordinary accounts and credit accounts

Name of shareholder(in full) this reporting end of the period

and shares lent through refinancing and

not yet returned at the end of the period

period

Total Shares Proportion (%) Total Shares Proportion (%)

China Merchants Bank Co. Ltd. – South

China Securities 1000 Exchange Traded Addition 0 0 16475300 0.31

Fund

Shareholdings of the top ten restricted shareholders and the restrictions

Applicable √ Not applicableANNUAL REPORT 2024

(III) Indicate whether any strategic investor or general corporate has become a top-10 shareholder due

to placement of new shares

Applicable √ Not applicable

IV. Controlling shareholder and actual controller

(I) Controlling shareholder

1. Legal person

√ Applicable Not applicable

Name China Communications Construction Group Co. Ltd.Company principal or legal representative Wang Tongzhou

Date of establishment December 08 2005

Construction of overseas projects and international bidding projects at home; general contracting for

construction of various special ships leasing and maintenance of special ship and construction machines;

offshore towage and professional services related to the ocean engineering; technical consultant services

regarding the ship and the supporting port equipment; engaging in the general contracting of construction

projects for ports channels highways and bridges both home and abroad (including technical and economic

Main business consultation of engineering feasibility study survey design construction supervision procurement and

supply for related complete set of equipment or materials and equipment installation); undertaking the

general contracting of the construction of industrial and civil works railway metallurgy petrochemical

tunnel power mine water conservancy and municipal works; import and export business; real estate

development and property management; investment and management of transportation hotel and tourism

industries.CCCG holds 59.42% of the stock equity of CCCC (601800.SH 1800.HK) and it is the controlling shareholder.CCCG holds 100% of the stock equity of CCCG Real Estate Group Co. Ltd. CCCG Real Estate Group Co. Ltd.holds 52.16% of the stock equity of CCCG Real Estate Co. Ltd. (000736.SZ) and it is the controlling shareholder.Interests held in other domestically and

CCCG and its controlling subsidiaries totally hold 28.94% of the stock equity of Greentown Holding Co. Ltd.overseas listed companies in the reporting

(3900. HK) and they are the controlling shareholders. China Urban and Rural Holding Group Co. Ltd. a wholly-

period

owned subsidiary of CCCG holds 33.40% of the stock equity of Originwater (300070. SZ) and they are the

controlling shareholders. CCCG holds 56.73% of CCCC Design (600720.SH) through CCCC and China Urban-

Rural Holding Group Co. Ltd. and it is the controlling shareholder.Notes to other circumstances

2. Natural person

Applicable √ Not applicable

3. Particulars about no controlling shareholder in the Company

Applicable √ Not applicable

4. Change of the controlling shareholder in the reporting period

Applicable √ Not applicableSection VII Changes in Shares and Shareholders' Situation

5. Block diagram of the ownership and control relationship between the Company and the controlling

shareholder

√ Applicable Not applicable

(II) 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. Description of the changes in control of the Company during the reporting period

Applicable √ Not applicableANNUAL REPORT 2024

5. Block diagram of ownership and control relationship between the Company and the actual controller

√ Applicable Not applicable

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 applicableSection VIII Preference Shares

VI. Other corporate shareholders holding more than 10%

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Name of corporate Company principal or legal Date of Organization Code Registered capital Main business or management shareholder representative establishment activities

China

Communications General contracting of construction

Construction Wang Tongzhou October 08 2006 91110000710934369E 16165711425 projects for ports waterways

Company Ltd. highways bridges etc.CCCG (HK) Holding Investment management project

Limited Peng Guangsheng September 5 2017 / HKD 1000 investment project financing

Description CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of China Communications 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 applicableANNUAL REPORT 2024

Section IX Bonds

I. Corporate bonds (including enterprise bonds and debt financing instruments of non-

financial enterprises

√ Applicable Not applicable

(I) Corporate bonds (including enterprise bonds)

Applicable √ Not applicable

(II) Information about funds raised from corporate bonds

The corporate bonds involved the use of raised funds or rectification during the reporting period

√ None of the corporate bonds involved the use of raised funds or rectification during the reporting period

(III) Other matters that should be disclosed for special bonds

Applicable √ Not applicable

(IV) Important matters related to the corporate bonds during the reporting period

Applicable √ Not applicable

(V) Interbank bond market debt financing instrument of non-financial enterprises

√ Applicable Not applicable

1. Basic information of debt financing instruments of non-financial enterprises

Unit: 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 listingand

(if any) 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 500000000 3.22 entry and No

2022 2022 31 2099 every year market

notes series innovation centralized

I (sci-tech note) placement

innovation

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 applicableSection IX Bonds

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 business

Signed by the

Agency name Office address Person to contact Contact number

Accountants

Bank of Communications Co. Ltd. No. 333 Lujiazui Ring Road — Zhang Peifei 021-38873279

Industrial Bank Tower 398 Middle Jiangbin 010-89926551

Industrial Bank Co. Ltd. — Lin Chen Cheng Qiuyun

Blvd. Taijiang District Fuzhou Fujian 021-62677777

17/F PICC Building No.2 Jianguomenwai Street

China Lianhe Credit Rating Co. Ltd. — Zhang Qian 010-85679696

Chaoyang District Beijing

50/F Shanghai World Financial Center No. 100

Ernst & Young Hua Ming LLP — Gao Chong 021-22288888

Century Ave. Pudong New Area Shanghai

58F Shanghai Tower No. 501 Yincheng Middle

Shanghai Duan & Duan Law Firm Road Lujiazui Sub-district Pudong New Area — Wang Xiaobo 62191103-7122

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

(VI) 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

(VII) Overdue interest-bearing debts other than bonds at the end of the reporting period

Applicable √ Not applicableANNUAL REPORT 2024

(VIII) 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

(IX) 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

Reason of

Main indexes 2024 2023 Year-on-year change (%)

change

Net profit attributable to the shareholders of the listed company

211097452274145961-23.00

after deducting the non-recurring profits and losses

Current ratio 1.00 0.94 6.38

Quick ratio 0.45 0.41 9.76

Asset-liability ratio (%) 78.64 77.77 0.87

EBITDA all debt ratio 0.05 0.05 0

Interest coverage ratio 2.15 1.81 18.78

Cash interest coverage ratio 6.36 5.48 16.06

EBITDA interest coverage ratio 4 3.22 24.22

Loan repayment ratio (%) 100 100 0

Interest coverage ratio (%) 100 100 0

II. Information about convertible corporate bonds

Applicable √ Not applicableSection X Financial Report

Section X Financial Report

I. Auditors’ Report

√ Applicable Not applicable

Auditors' Report

Ernst & Young Hua Ming (2025) Audit No. 70023385_B01

Shanghai Zhenhua Heavy Industries Co. Ltd.To 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 2024

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 2024 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 Chinawe 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 FinancialStatement” in this report including the responsibilities related to these key auditing matters. Correspondingly our

auditing work includes the implementation of the auditing procedure designed for dealing with the great misstatement

risks of the financial statement to be evaluated. The results from the implementation of the auditing procedure by us

including the procedure to be implemented for the following key auditing matters offers a foundation for releasing the

auditing opinions of the financial statements.ANNUAL REPORT 2024

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 Our procedure mainly included knowing and testing the validity

products in the process and inventory goods. Since the production cycle of the of the control related to the provision of inventory depreciation

products is relatively long the net realizable value of the related inventory may reserves and the method of calculating the net realizable value of

fluctuate with the change in the market demand resulting in the inventory the Group. We also implemented the related auditing procedures

depreciation risks. The management sets aside the inventory depreciation reserves over the inventory such as supervision of inventory to verify whether

according to the balance of the inventory cost and the net realizable value. The net the management had marked the inventory with slow turnover

realizable value is determined as per the estimated selling price of the inventory and defectives and taken into full account in provision of inventory

minus the cost the estimated selling expenses and the related taxes that may depreciation reserves. In addition we obtained the computation

occur in the completion on the assumption that the management layer adopts a sheet of provision of inventory depreciation reserves from the

certain estimate and hypothesis in determining the net realizable value. In case management rechecked the calculation method and result. As to

of difference between the actual figure and the originally estimated figure the the key elements taken into consideration by the management in

related balance will affect the book value of the inventory and the depreciation calculating the net realizable value including the estimated selling

loss in the estimated fluctuation. price and the cost that may occur till completion we evaluated the

As of December 31 2024 in the consolidated financial statements the balance of hypothesis and the estimates through analyzing the related historical

inventories was RMB 24.95 billion and the reserve for inventory depreciation was data and comparing the after-date data of Shanghai Zhenhua Heavy

RMB 0.4 billion; in the Company’s financial statements the balance of inventories Industries Co. Ltd. We also rechecked the disclosure of inventory

was RMB 19.35 billion and the reserve for inventory depreciation was RMB 0.35 depreciation reserves in financial statements.billion.The accounting policy and other disclosures regarding the inventory are stated in

Note III (10) Note III (32) and Note V (9) of the financial statement.

2. Provision for bad debts of accounts receivable

The accounts receivable of Shanghai Zhenhua Heavy Industries Co. Ltd. is

mainly from the business contract on port machine and ocean engineering

manufacturing. Since it involves large contracted value long construction period Our procedures mainly included understanding and testing the

relatively complicated technical parameters the implementation of the contract internal controls related to management’s provision for accounts

may be affected by the periodicity of the economic environment. The accounts receivable bad debts; evaluation of the accounting estimate relating

receivable has certain risk in the recovery in case of any dispute in contract or the to the depreciation reserves such as the financial status and credit

industry is in recession. The provisions for bad debts of accounts receivable are rating of the counterpart; checked the account age of accounts

recognized on the basis of estimated credit losses involving major judgment and receivable and historical repayment record and evaluated whether

estimates. The management of analyzed the financial position of counter parties the financial problems of the counter party had effects on the

guarantee acquired for accounts receivable historical repayment records of recovery of the accounts receivable; for the accounts receivable

accounts receivable as well as the credit rating and future economic situations of evaluated based on the portfolio we rechecked the management's

counter parties for evaluating the credit risk of accounts receivable. setting of credit risk features portfolio checked the key information

As of December 31 2024 in the consolidated financial statements the balance such as account age and credit record of each portfolio by sampling

of accounts receivable was RMB 10.38 billion and the provision for bad debts and rechecked the basis of management's evaluation of credit risk

of accounts receivable was RMB 3.02 billion; in the financial statements of the and expected credit loss amount based on the credit risk features

Company the balance of accounts receivable was RMB 23.01 billion and the portfolio including testing historical default data and checking the

provision for bad debts of accounts receivable was RMB 2.70 billion. actual credit loss in the current year; rechecked the disclosure of bad

The accounting policy and other disclosures regarding the provision for bad debts debt provision for accounts receivable in financial statements.of accounts receivable are stated in Note III (9) Note III (32) Note V (5) and Note

XVI (1) of the financial statements.

3. Revenue recognition

Our procedure mainly included evaluating and testing the

management’s internal control related to revenue recognition

selected the sales contract with significant amount checked the

The majority of the revenue of Shanghai Zhenhua Heavy Industries Co. Ltd. comes important contract terms related to revenue recognition and

from contracts for the custom production of large-sized port equipment heavy evaluated the management’s accounting judgment and estimate on

equipment and steel structure for customers. performance obligations revenue recognition amount (including

We identified the revenue recognition as a key audit matter since the operating variable consideration) and the recognition at a certain time point or

revenue is one of the key performance indicators of ZPMC and there is a significant within a period of time. Through selecting the samples we verified

risk of material misstatement due to the management’s premature revenue whether the contract revenue recognized in the year conformed to

recognition to achieve specific targets or expectations. the revenue recognition conditions; implemented the cutoff check

In 2024 in the consolidated financial statements the operating revenue was RMB procedure to validate the revenue was confirmed in the proper

34.46 billion; in the financial statements of the Company the operating revenue accounting period. For the revenue recognized in a certain period of

was RMB 34.57 billion. time we evaluated the judgment and estimate of the total contract

The accounting policy and other disclosures regarding the operating revenue cost and total processing amount made by the management and

are stated in Note III (23) Note III (32) Note V (47) and Note XVI (4) of the financial made sampling to calculate and check the income determined by the

statements. occurred contract cost and the expected total contract cost again;

implemented the analysis procedure against the changes in revenue

and gross profit of various businesses; rechecked the disclosure of

revenue recognition in financial statements.Section X Financial Report

(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 supervising the Company’s financial reporting process.(VI) Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement whether due to fraud or error and to issue an auditors' report that includes our opinion.Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with the

audit standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and

are considered material if individually or in the aggregate they could reasonably be expected to influence the economic

decisions of users taken on the basis of these financial statements.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.ANNUAL REPORT 2024

(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

(Intentionally left blank)

Ernst & Young Hua Ming LLP Certified Public Accountant of China:

(Engagement Partner)

Certified Public Accountant of China:

Beijing China March 27 2025ANNUAL REPORT 2024

II. Financial Statements

Consolidated Balance Sheet

December 31 2024

Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd.Unit: Yuan Currency: CNY

Item Note December 31 2024 December 31 2023

Current assets:

Monetary funds VII (1) 5866827212 5105078436

Settlement provisions

Lending funds

Held-for-trading financial assets VII (2) 534200582 712156397

Derivative financial assets VII (3) 8438278 8438278

Notes receivable VII (4) 50000000 14122031

Accounts receivable VII (5) 7365793461 7266298102

Receivables financing VII (7) 650260884 965569122

Advances to suppliers VII (8) 1031617859 1313834063

Premiums receivable

Reinsurance accounts receivable

Reserves for reinsurance contract receivable

Other receivables VII (9) 780170637 1245727441

Including: Interest receivable

Dividends receivable

Financial assets purchased under agreements to resell

Inventories VII (10) 24554584666 24281402176

Incl.: data resources

Contract assets VII (6) 3897647216 2779633134

Assets held for sale VII (11)

Non-current assets due within one year VII (12) 1346060900 1341408631

Other current assets VII (13) 858154532 476726381

Total current assets 46943756227 45510394192

Non-current assets:

Disbursement of loans and advances

Debt investment VII (14)

Other debt investments VII (15)

Long-term receivables VII (16) 1081258063 1457182459

Long-term equity investments VII (17) 1767152609 1956257622

Other equity instrument investment VII (18) 190530888 104859374

Other non-current financial assets VII (19)

Investment properties VII (20) 406737755 414931428

Fixed assets VII (21) 23690697203 19990882347

Construction in progress VII (22) 1301728801 5184520534

Productive biological assets

Oil and gas assets

Right-of-use assets VII (25) 37979304 62630180

Intangible assets VII (26) 4388171283 4093419088

Incl.: data resources

Development expenditures

Incl.: data resources

Goodwill VII (27) 271896748 270172367

Long-term deferred expenses VII (28) 1593447 1055983

Deferred income tax assets VII (29) 877269033 893698896

Other non-current assets VII (30) 4808691840 4924571621

Total non-current assets 38823706974 39354181899

Total assets 85767463201 84864576091Section X Financial Report

Item Note December 31 2024 December 31 2023

Current liabilities:

Short-term borrowings VII (32) 2297334457 4781640779

Borrowings from the Central Bank

Borrowing funds

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable VII (35) 4584675393 5533470582

Accounts payable VII (36) 10603482116 8616059138

Advances from customers

Contract liabilities VII (38) 21485833167 19230649196

Financial assets sold for repurchase

Deposits from customers and interbank

Acting trading securities

Acting underwriting securities

Payroll payable VII (39) 40189914 40097393

Tax payable VII (40) 344230174 324641134

Other payables VII (41) 890050528 1021376260

Including: Interest payable

Dividends payable 6593 6593

Fees and commissions payable

Dividend payable for reinsurance

Liabilities held for sale

Non-current liabilities due within one year VII (43) 6745720647 8650700389

Other current liabilities VII (44)

Total current liabilities 46991516396 48198634871

Non-current liabilities:

Reserve fund for insurance contracts

Long-term borrowings VII (45) 17785704495 15105224079

Bonds payable

Including: preferred stock

Perpetual bond

Lease liabilities VII (47) 10445787 31548184

Long-term payables VII (48) 1717210910 1744502983

Long-term payroll payable

Estimated liabilities VII (50) 208887331 168217597

Deferred income VII (51) 341562085 369054982

Deferred income tax liabilities VII (29) 137688522 133272270

Other non-current liabilities VII (52) 251996220 247185330

Total non-current liabilities 20453495350 17799005425

Total liabilities 67445011746 65997640296

Owners’ equity (or shareholders’ equity):

Paid-in capital (or share capital) VII (53) 5268353501 5268353501

Other equity instruments VII (54) 500000000 500000000

Including: preferred stock

Perpetual bond 500000000 500000000

Capital reserves VII (55) 4709186687 4882590778

Less: treasury stock

Other comprehensive income VII (57) 77752796 59000302

Special reserves VII (58) 16731029 10525094

Surplus reserves VII (59) 1753183750 1711305045

General risk preparation

Undistributed profits VII (60) 3542325737 3324778074

Total owners' equities attributable to the owners of parent company 15867533500 15756552794

Minority equity 2454917955 3110383001

Total owners’ equity (or shareholders' equity) 18322451455 18866935795

Total liabilities and owners’ equity (or shareholders' equity) 85767463201 84864576091

Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:ANNUAL REPORT 2024

Balance Sheet of the Parent Company

December 31 2024

Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd.Unit: Yuan Currency: CNY

Item Note December 31 2024 December 31 2023

Current assets:

Monetary funds 3827553785 3759568695

Held-for-trading financial assets 138755008 182724222

Derivative financial assets

Notes receivable

Accounts receivable XIX (1) 20307096833 19685759151

Receivables financing 342741773 638394101

Advances to suppliers 1871468396 1204312330

Other receivables XIX (2) 3273122746 3373418359

Including: Interest receivable

Dividends receivable

Inventories 18996871002 21719656262

Incl.: data resources

Contract assets 2460999689 1854052360

Assets held for sale

Non-current assets due within one year

Other current assets 606275744 305040708

Total current assets 51824884976 52722926188

Non-current assets:

Debt investment

Other debt investments

Long-term receivables

Long-term equity investments XIX (3) 10351021410 9456761435

Other equity instrument investment 190530888 104859374

Other non-current financial assets

Investment properties 392376734 414931428

Fixed assets 4015302414 3741477947

Construction in progress 1056661914 916537474

Productive biological assets

Oil and gas assets

Right-of-use assets 9166128 15253224

Intangible assets 1362202411 1393384863

Incl.: data resources

Development expenditures

Incl.: data resources

Goodwill

Long-term deferred expenses 94129 124771

Deferred income tax assets 855067411 871331750

Other non-current assets 663482258 823808086

Total non-current assets 18895905697 17738470352

Total assets 70720790673 70461396540Section X Financial Report

Item Note December 31 2024 December 31 2023

Current liabilities:

Short-term borrowings 889334457 4091640779

Held-for-trading financial liabilities

Derivative financial liabilities

Notes payable 3861379521 5199186754

Accounts payable 7419221155 5166087023

Advances from customers

Contract liabilities 20061938867 18367419237

Payroll payable 29258184 29378564

Tax payable 235344747 140507385

Other payables 1086104964 1384628567

Including: Interest payable

Dividends payable

Liabilities held for sale

Non-current liabilities due within one year 6415625514 8198412536

Other current liabilities

Total current liabilities 39998207409 42577260845

Non-current liabilities:

Long-term borrowings 14913247504 12250338715

Bonds payable

Including: preferred stock

Perpetual bond

Lease liabilities 1788323 8137322

Long-term payables

Long-term payroll payable

Estimated liabilities 181513116 147187314

Deferred income 240784101 267369648

Deferred income tax liabilities

Other non-current liabilities 5687798 5852338

Total non-current liabilities 15343020842 12678885337

Total liabilities 55341228251 55256146182

Owners’ equity (or shareholders’ equity):

Paid-in capital (or share capital) 5268353501 5268353501

Other equity instruments 500000000 500000000

Including: preferred stock

Perpetual bond 500000000 500000000

Capital reserves 4907051446 4894907348

Less: treasury stock

Other comprehensive income 48144596 31409336

Special reserves 2165658 1422294

Surplus reserves 1752675477 1710796772

Undistributed profits 2901171744 2798361107

Total owners’ equity (or shareholders' equity) 15379562422 15205250358

Total liabilities and owners’ equity (or shareholders' equity) 70720790673 70461396540

Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:ANNUAL REPORT 2024

Consolidated Income Statement

January to December in 2024

Unit: Yuan Currency: CNY

Item Note 2024 2023

I. Total operating revenue 34456420181 32933263802

Including: Operating revenue VII (61) 34456420181 32933263802

Interest income

Premiums earned

Fee and commission income

II. Total operating cost 33273059405 31689837163

Including: operating costs VII (61) 30060171301 28480385794

Interest expenses

Fee and commission expense

Surrender value

Net amount of compensation payout

Net reserves for insurance liabilities

Policy holder dividend expense

Reinsurance expenses

Taxes and surcharges VII (62) 334432807 291299625

Selling and distribution expenses VII (63) 232654482 211361193

General and administrative expenses VII (64) 818457672 849183436

Research and development expenditures VII (65) 1502397344 1311556665

Financial expenses VII (66) 324945799 546050450

Including: interest expenses 812901300 965865812

Interest income 389180961 429793598

Plus: other incomes VII (67) 145576944 99289337

Income from investment (loss expressed with “-”) VII (68) 78121431 67909400

Including: Income from investment of joint venture and cooperative

3872226978028096

enterprise

Income from derecognition of financial assets measured at

-54613813-115312416

amortized cost

Exchange gain (loss expressed with “-”)

Net exposure hedging gain (loss expressed with “-”)

Income from fair value changes (loss expressed with “-”) VII (70) 13425987 -27339814

Credit impairment losses (loss expressed with “-”) VII (71) -418414816 -276310095

Assets impairment losses (loss expressed with “-”) VII (72) -200815539 -428844200

Income from disposal of assets (loss expressed with “-”) VII (73) 106961574 79038662

III. Operating profits (loss expressed with “-”) 908216357 757169929

Plus: non-operating income VII (74) 53998945 30243969

Less: non-operating expenditure VII (75) 24786050 2256229

IV. Total profits (total loss expressed with “-”) 937429252 785157669

Less: income tax expenses VII (76) 157484483 138613040

V. Net profits (net loss expressed with “-”) 779944769 646544629

(I) Classified by business continuity

1. Net profits from ongoing operation (net loss expressed with “-”) 779944769 646544629

2. Net profits from discontinuing operation (net loss expressed with “-”)

(II) Classified by ownership

1. Net profit attributable to the shareholders of parent company (net loss

533524077519978765

expressed with “-”)

2. Minority interests (net loss expressed with “-”) 246420692 126565864Section X Financial Report

Item Note 2024 2023

VI. Net of tax of other comprehensive income VII (77) 30472971 45425366

(I) Net amount of after-tax other comprehensive income attributable to the

2175746034134315

owners of theparent company

1. Other comprehensive income that can't be reclassified into profit and

456595510704692

loss

(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 4565955 10704692

(4) Fair value change of enterprise credit risks

2. Other comprehensive income that will be reclassified into profit and loss 17191505 23429623

(1) Other comprehensive income that will be reclassified into profit and

14646563-718408

loss in the invested 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 2544942 24148031

(7) Others

(II) Net of tax of other comprehensive income attributable to the minority

871551111291051

shareholders

VII. Total comprehensive income 810417740 691969995

(I) Total comprehensive income belonging to parent company 555281537 554113080

(II) Total comprehensive income belonging to minority shareholders 255136203 137856915

VIII. Earnings per share:

(I) Basic earnings per share (Yuan/share) 0.10 0.10

(II) Diluted earnings per share (Yuan/share) 0.10 0.10

In case of business combination under common control in current period the net profit realized by the combined party

before combination was RMB 0 and the net profit realized by the combined party in the previous period was RMB 0.Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:ANNUAL REPORT 2024

Income Statement of Parent Company

January to December in 2024

Unit: Yuan Currency: CNY

Item Note 2024 2023

I. Operating revenue XIX (4) 34566920628 28449047821

Less: operating costs XIX (4) 31446805557 25824140425

Taxes and surcharges 254780250 215477341

Selling and distribution expenses 155409738 155665223

General and administrative expenses 454544585 445853080

Research and development expenditures 1092525439 892691771

Financial expenses 299533226 454757877

Including: interest expenses 565802063 712367582

Interest income 80198004 81538834

Plus: other incomes 67785887 38130119

Income from investment (loss expressed with “-”) XIX (5) 113104491 191810563

Including: Income from investment of joint venture and cooperative enterprise 38775117 77665390

Income from derecognition of financial assets measured at amortized cost -54613813 -115312416

Net exposure hedging gain (loss expressed with “-”)

Income from fair value changes (loss expressed with “-”) -39555311 -49259201

Credit impairment losses (loss expressed with “-”) -383046479 -248116095

Assets impairment losses (loss expressed with “-”) -209486005 -398239554

Income from disposal of assets (loss expressed with “-”) 8240262 30720459

II. Operating profits (loss expressed with “-”) 420364678 25508395

Plus: non-operating income 19258466 13763655

Less: non-operating expenditure 1803355 1660230

III. Total profits (total loss expressed with “-”) 437819789 37611820

Less: income tax expenses 19032738 -36251874

IV. Net profits (loss expressed with “-”) 418787051 73863694

(I) Net profits from ongoing operation (net loss expressed with “-”) 418787051 73863694

(II) Net profits from discontinuing operation (net loss expressed with “-”)

V. Net of tax of other comprehensive income 19740226 10526809

(I) Other comprehensive income that can't be reclassified into profit and loss 4565955 10704692

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 4565955 10704692

4. Fair value change of enterprise credit risks

(II) Other comprehensive income that will be reclassified into profit and loss 15174271 -177883

1. Other comprehensive income that will be reclassified into profit and loss in the

invested enterprise under equity method 14646563 -718408

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 527708 540525

7. Others

VI. Total comprehensive income 438527277 84390503

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 2024

Unit: Yuan Currency: CNY

Item Note 2024 2023

I.Cash flow from operating activities:

Cash from selling commodities or offering labor 37435656876 38828500433

Net increase of customer deposit and deposit from other banks

Net increase of borrowings from central bank

Net increase of borrowing funds from other financial institutions

Cash from obtaining original insurance contract premium

Net cash received from reinsurance business

Net increase in the deposits and investment of insured

Cash from interest handling charges and commissions

Net increase of borrowing funds

Net increase of repurchase of business funds

Net cash from acting trading securities

Refund of tax and levies 652174743 416830589

Other cash received related to operating activities 519372156 676958575

Subtotal cash inflows from operating activities 38607203775 39922289597

Cash paid for goods purchased and services received 29307515856 30775739275

Net increase of customer loans and advances

Net increase of amount due from central bank and interbank

Cash paid for original insurance contract claims payment

Net increase of lending funds

Cash paid for interest handling charges and commissions

Cash paid for policy dividend

Cash paid to and for employees 2626047540 2508297766

Taxes and fees paid 718326527 697045919

Other cash paid related to operating activities 679434974 757022191

Subtotal cash outflows from operating activities 33331324897 34738105151

Net cash flows from operating activities 5275878878 5184184446

II.Cash flows from investment activities:

Cash from investment withdrawal 421989782 129548854

Cash from investment income 113205574 234193072

Net cash received from disposal of fixed assets intangible assets and

148958016105378156

other long-term assets

Net cash from disposal of subsidiaries and other business units

Net cash from purchase of subsidiaries 12022181

Other cash received related to investment activities 232413226 114994970

Subtotal cash inflows from investment activities 928588779 584115052

Cash paid for purchase of fixed assets intangible assets and other

1061984214746956678

long-term assets

Cash paid for investments 88358925 18790000

Net increase in hypothecated loan

Net cash paid for obtaining subsidiaries and other business units

Other cash paid related to investment activities

Subtotal cash outflows from investment activities 1150343139 765746678

Net cash flow from investment activities -221754360 -181631626ANNUAL REPORT 2024

Item Note 2024 2023

III.Cash flows from financing activities:

Cash from absorption of investments 49240000 170101094

Including: cash received from subsidies’ absorption of minority

49240000170101094

shareholders’ investment

Cash received from borrowings 15944699596 26666299568

Other cash received related to financing activities 1942418735 1134318331

Subtotal cash inflows from financing activities 17936358331 27970718993

Cash repayments of amounts borrowed 17647258576 27644066754

Cash paid for distribution of dividends profits or interest expenses 1207097103 1080107143

Including: dividends and profits paid by subsidiaries to minority

9805288893141010

shareholders

Other cash paid related to financing activities 3385153914 1638264999

Subtotal cash outflows from financing activities 22239509593 30362438896

Net cash flows from financing activities -4303151262 -2391719903

IV. Impact of exchange rate movements on cash and cash equivalents 40032787 46235551

V. Net increase of cash and cash equivalents 791006043 2657068468

Plus: beginning balance of cash and cash equivalents 5032169905 2375101437

VI. Ending balance of cash and cash equivalents 5823175948 5032169905

Legal 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 2024

Unit: Yuan Currency: CNY

Item Note 2024 2023

I.Cash flow from operating activities:

Cash from selling commodities or offering labor 32363081440 31008944150

Refund of tax and levies 635668940 300080487

Other cash received related to operating activities 344116999 636768375

Subtotal cash inflows from operating activities 33342867379 31945793012

Cash paid for goods purchased and services received 26790765500 25004851532

Cash paid to and for employees 1385075473 1351747671

Taxes and fees paid 174514929 207703416

Other cash paid related to operating activities 463694875 375422856

Subtotal cash outflows from operating activities 28814050777 26939725475

Net cash flows from operating activities 4528816602 5006067537

II.Cash flows from investment activities:

Cash from investment withdrawal 531587245 7801165

Cash from investment income 135346793 661183014

Net cash received from disposal of fixed assets intangible assets and

824026230720458

other long-term assets

Net cash from disposal of subsidiaries and other business units

Other cash received related to investment activities

Subtotal cash inflows from investment activities 675174300 699704637

Cash paid for purchase of fixed assets intangible assets and other

341835549179032663

long-term assets

Cash paid for investments 1459478925 132957200

Net cash paid for obtaining subsidiaries and other business units

Other cash paid related to investment activities

Subtotal cash outflows from investment activities 1801314474 311989863

Net cash flow from investment activities -1126140174 387714774

III.Cash flows from financing activities:

Cash from absorption of investments

Cash received from borrowings 13270759931 24845294619

Other cash received related to financing activities 1897394119 1015336873

Subtotal cash inflows from financing activities 15168154050 25860631492

Cash repayments of amounts borrowed 15581580228 26172827571

Cash paid for distribution of dividends profits or interest expenses 851526505 747532915

Other cash paid related to financing activities 2042588113 1370807692

Subtotal cash outflows from financing activities 18475694846 28291168178

Net cash flows from financing activities -3307540796 -2430536686

IV. Impact of exchange rate movements on cash and cash equivalents 6174253 41581886

V. Net increase of cash and cash equivalents 101309885 3004827511

Plus: beginning balance of cash and cash equivalents 3712204957 707377446

VI. Ending balance of cash and cash equivalents 3813514842 3712204957

Legal representative of the Company: Person in charge of accounting work: Person in charge of accounting agency:ANNUAL REPORT 2024

Consolidated Statement of Changes in Owners’ Equity

January to December in 2024

Unit: Yuan Currency: CNY

2024

Equity attributable to the owners of the parent company

Item Other equity instruments

Paid-in capital Less: Other

Minority Total owners’

(or share capital) Preferred Capital reserves treasury comprehensive

Special

reserves Surplus reserves

General risk Undistributed

preparation profits Others Sub-total

equity equity

stock Perpetual bond Others stock income

I. Balance at the end of the last year 5268353501 500000000 4882590778 59000302 10525094 1711305045 3324778074 15756552794 3110383001 18866935795

Plus: changes in accounting policies

Prior period error correction

Others

II. Beginning balance in current year 5268353501 500000000 4882590778 59000302 10525094 1711305045 3324778074 15756552794 3110383001 18866935795

III. Increase/decrease in the current year (“-” for decrease) -173404091 18752494 6205935 41878705 217547663 110980706 -655465046 -544484340

(I) Total comprehensive income 21757460 533524077 555281537 255136203 810417740

(II) Owner’s invested and decreased capital -173404091 -173404091 -814646878 -988050969

1. Common stock invested by the owners 49240000 49240000

2. Capital invested by other equity instrument holders

3. Amount of share-based payment included in the owner’s

equity 12144098 12144098 12144098

4. Others -185548189 -185548189 -863886878 -1049435067

(III) Profit distribution 41878705 -318981380 -277102675 -98052888 -375155563

1. Withdrawal of surplus reserves 41878705 -41878705

2. Withdrawal of general risk preparation

3. Distribution of owners (or shareholders) -263417675 -263417675 -98052888 -361470563

4. Others -13685000 -13685000 -13685000

(IV) Internal transfer of owner’s equity -3004966 3004966

1. Capital surplus transfer to paid-in capital (or capital stock)

2. Earned surplus transfer to paid-in capital (or capital stock)

3. Earned surplus covering the deficit

4. Carryforward retained earnings in variation of defined benefit

plan

5. Carryforward retained earnings of other comprehensive

income -3004966 3004966

6. Others

(V) Special reserves 6205935 6205935 2098517 8304452

1. Amount withdrawn in the current year 94703880 94703880 6724447 101428327

2. Amount used in the current year -88497945 -88497945 -4625930 -93123875

(VI) Others

IV. Closing balance 5268353501 500000000 4709186687 77752796 16731029 1753183750 3542325737 15867533500 2454917955 18322451455Section X Financial Report

2023

Equity attributable to the owners of the parent company

Item Other equity instruments Less: Other Minority Total owners’

Paid-in capital Special Surplus General risk Undistributed

Preferred Capital reserves treasury comprehensive Others Sub-total equity equity(or share capital) Perpetual bond Others reserves reserves preparation profits

stock stock income

I. Balance at the end of the last year 5268353501 500000000 4842515715 24865987 2945560 1703918676 2825870678 15168470117 2953874702 18122344819

Plus: changes in accounting policies

Prior period error correction

Others

II. Beginning balance in current year 5268353501 500000000 4842515715 24865987 2945560 1703918676 2825870678 15168470117 2953874702 18122344819

III. Increase/decrease in the current year (“-” for

400750633413431575795347386369498907396588082677156508299744590976

decrease)

(I) Total comprehensive income 34134315 519978765 554113080 137856915 691969995

(II) Owner’s invested and decreased capital 40075063 40075063 110464696 150539759

1. Common stock invested by the owners 59636398 59636398 110464696 170101094

2. Capital invested by other equity instrument holders

3. Amount of share-based payment included in the

owner’s equity

4. Others -19561335 -19561335 -19561335

(III) Profit distribution 7386369 -21071369 -13685000 -93141013 -106826013

1. Withdrawal of surplus reserves 7386369 -7386369

2. Withdrawal of general risk preparation

3. Distribution of owners (or shareholders) -93141013 -93141013

4. Others -13685000 -13685000 -13685000

(IV) Internal transfer of owner’s equity

1. Capital surplus transfer to paid-in capital (or capital

stock)

2. Earned surplus transfer to paid-in capital (or capital

stock)

3. Earned surplus covering the deficit

4. Carryforward retained earnings in variation of

defined benefit plan

5 . C a r r y f o r w a r d r e t a i n e d e a r n i n g s o f o t h e r

comprehensive income

6. Others

(V) Special reserves 7579534 7579534 1327701 8907235

1. Amount withdrawn in the current year 76585293 76585293 5150149 81735442

2. Amount used in the current year -69005759 -69005759 -3822448 -72828207

(VI) Others

IV. Closing balance 55226688335533550011 500000000 4882590778 5599000000330022 1100552255009944 11771111330055004455 3324778074 157565527944 33111100338833000011 1188886666993355779955

Legal representative of tthhee CCoommppaannyyyyyyy:::::::: Person in charge of accounttiinngg wwoorrkk:: Person in charge of accounting ageennccyy::ANNUAL REPORT 2024

Statement of Changes in Owners’ Equity of the Parent Company

January to December in 2024

Unit: Yuan Currency: CNY

2024

Other equity instruments

Item Less: Other Paid-in capital Undistributed Total owners’

Preferred Capital reserves treasury comprehensive Special reserves Surplus reserves(or share capital) Perpetual bond Others profits equity

stock stock income

I. Balance at the end of the last year 5268353501 500000000 4894907348 31409336 1422294 1710796772 2798361107 15205250358

Plus: changes in accounting policies

Prior period error correction

Others

II. Beginning balance in current year 5268353501 500000000 4894907348 31409336 1422294 1710796772 2798361107 15205250358

III. Increase/decrease in the current year (“-” for decrease) 12144098 16735260 743364 41878705 102810637.00 174312064.00

(I) Total comprehensive income 19740226 418787051 438527277

(II) Owner’s invested and decreased capital 12144098 12144098

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

1214409812144098

equity

4. Others

(III) Profit distribution 41878705 -318981380.00 -277102675.00

1. Withdrawal of surplus reserves 41878705 -41878705

2. Distribution of owners (or shareholders) -263417675 -263417675

3. Others -13685000 -13685000

(IV) Internal transfer of owner’s equity -3004966 3004966

1. Capital surplus transfer to paid-in capital (or capital stock)

2. Earned surplus transfer to paid-in capital (or capital stock)

3. Earned surplus covering the deficit

4. Carryforward retained earnings in variation of defined

benefit plan

5. Carryforward retained earnings of other comprehensive

-30049663004966

income

6. Others

(V) Special reserves 743364 743364

1. Amount withdrawn in the current year 49774318 49774318

2. Amount used in the current year -49030954 -49030954

(VI) Others

IV. Closing balance 5268353501 500000000 4907051446 48144596 2165658 1752675477 2901171744 15379562422Section X Financial Report

2023

Other equity instruments

Item Less: Other Paid-in capital Undistributed Total owners’

Preferred Capital reserves treasury comprehensive Special reserves Surplus reserves(or share capital) Perpetual bond Others profits equity

stock stock income

I. Balance at the end of the last year 5268353501 500000000 4914468683 20882527 1703410403 2745568782 15152683896

Plus: changes in accounting policies

Prior period error correction

Others

II. Beginning balance in current year 5268353501 500000000 4914468683 20882527 1703410403 2745568782 15152683896

III. Increase/decrease in the current year (“-” for decrease) -19561335 10526809 1422294 7386369 52792325 52566462

(I) Total comprehensive income 10526809 73863694 84390503

(II) Owner’s invested and decreased capital -19561335 -19561335

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 -19561335 -19561335

(III) Profit distribution 7386369 -21071369 -13685000

1. Withdrawal of surplus reserves 7386369 -7386369

2. Distribution of owners (or shareholders)

3. Others -13685000 -13685000

(IV) Internal transfer of owner’s equity

1. Capital surplus transfer to paid-in capital (or capital stock)

2. Earned surplus transfer to paid-in capital (or capital stock)

3. Earned surplus covering the deficit

4. Carryforward retained earnings in variation of defined

benefit plan

5. Carryforward retained earnings of other comprehensive

income

6. Others

(V) Special reserves 1422294 1422294

1. Amount withdrawn in the current year 41377208 41377208

2. Amount used in the current year -39954914 -39954914

(VI) Others

IV. Closing balance 5522668833553501 500000000 44889944990077334488 331144009336 1422294 1710796772 2779988336611110077 1155220055225500335588

Legal representative off tthhee CCoommppaannyyyyyyyy:: Person in charge of accounttiinngg wwoorrkk:: Person in charge of accounting ageennccyy::ANNUAL REPORT 2024

III. Company profile

1. Company profile

√ Applicable Not applicable

Shanghai Zhenhua Heavy Industries Co. Ltd. (hereinafter referred to as “the Company”) is a joint-stock company limited

established on September 8 1997 through restructuring Shanghai Zhenhua Port Machinery Company Limited (hereinafter

referred to as “Zhenhua Company”). Both the registration place and the address of the headquarters are in Shanghai City P.R. China.As approved by ZWFZ (1997) No.42 Document issued by the Securities Commission under the State Council the Company

issued 100 million domestically-listed shares held by the foreign investors (B-share) from July 15 1997 till July 17 1997.The B-shares were listed for trading at Shanghai Stock Exchange on Aug. 5 1997.As approved by ZJFXZ (2000) No. 200 Document of China Securities Regulatory Commission the Company additionally

issued of 88 million common shares (RMB denominated) (A-share) held by the domestic investors in December 2000. The

A-shares were listed for trading at Shanghai Stock Exchange on Dec. 21 2000.As approved by ZJFXZ (2004) No.165 Document of China Securities Regulatory Commission the Company additionally

issued 114280000 A-shares held by the domestic investors on December 23 2004. The additionally issued A-shares were

listed at Shanghai Stock Exchange respectively for trading on December 31 2004 and January 31 2005.As approved by ZJFXZ (2007) No. 346 Document of China Securities Regulatory Commission the Company additionally

issued 125515000 A-shares held by the domestic investors on October 15 2007. The additionally issued A-shares were

listed at Shanghai Stock Exchange for trading on October 23 2007 and January 23 2008 respectively.As approved by ZJXKZ (2009) No.71 Document of China Securities Regulatory Commission the Company privately placed

169794680 A-shares on Sept. 22 2008 to its controller China Communications Construction Co. Ltd. (hereinafter referred

to as “China Communications Corporation”). A-shares privately placed were the tradable shares with limited trading

conditions. From Mar. 20 2012 on the term of trading limitation expired for above-mentioned A-shares which were listed

at Shanghai Stock Exchange for trading.By December 31 2024 after all issuances of the shares and bonus shares distributed in the past year the total shares of

the Company amounted to 5268353501 shares par value per share was RMB 1. The share capital totaled up to RMB

5268353501.

On December 18 2005 China Road and Bridge Construction Group General Company and the Company’s former

controlling shareholder China Harbor Construction (Group) General Company were merged into China Communications

Construction (Group) Co. Ltd after restructuring (hereafter referred to as “CCCG”). In accordance with the Official Reply

to Overall Reorganization and Overseas-listed and Domestically-listed Share of China Communications Construction Co.Ltd. (GZGG [2006] No.1063 Document) by State-owned Assets Supervision and Administration Commission of the State

Council on Aug. 16 2006 the reorganization proposal of China Communications Construction (Group) Co. Ltd approved

in the Official Reply to the Issues Concerning Management of State-owned Stock Equity of China Communications

Construction Co. Ltd. (GZCQ [2006] No.1072 Document) on Sept. 30 2006 and the Official Reply to Approval of China

Communications Construction Co. Ltd.’s Announcement of Purchase Report of Road and Bridge Construction Co. Ltd.and Shanghai Zhenhua Port Machinery (Group) Co. Ltd. and Exemption of Their Obligations for Purchase by Offer (ZJGSZ

[2006] No. 227 Document) CCCG solely initiated the incorporation of China Communications Construction Co. Ltd. on

Oct. 8 2006 and invested the stock equity of the Company held into the newly incorporated China Communications Co.Ltd. With the completion of reorganization China Communications Co. Ltd thus became the controlling shareholder of

the Company.In 2016 the Company was granted the Uniform Social Credit Code of 91310000607206953D.On July 18 2017 the board of directors of China Communications Construction Co. Ltd. discussed and approved

the Proposal for Transfer of Some Shares of Shanghai Zhenhua Heavy Industries (Group) Co. Ltd by Agreement and

Associated Transaction and agreed to transfer totally 1316649346 shares of this Company held by it to CCCG and

CCCG (Hong Kong) Holdings Co. Ltd. (hereinafter referred to as “CCCG Hong Kong”) accounting for 29.990% of the totalSection X Financial Report

shares of this Company after that China Communications Construction Co. Ltd. held 16.239% of the stock equity of this

Company. The transfer and registration of shares was accomplished on December 27 2017. On the date of the transfer

of shares CCCG directly held 552686146 A-shares of this Company (accounting for 12.589% of the total shares of this

Company) indirectly held 763963200 B-shares of this Company through CCCG (Hong Kong) (accounting for 17.401%

of the total shares of the Company) and held 712951703 A-shares of this Company through China Communications

Construction Co. Ltd. (accounting for 16.239% of the total shares of this Company) as a result it became the controlling

shareholder of the Company.The Company and its subsidiaries (hereinafter collectively referred to as “the Group”) were mainly engaged in design

construction installation and contracting of large-sized port handling system and equipment offshore heavy-duty

equipment engineering machinery engineering vessel and large-sized metal structural members and their parts and

components; sales of the self-produced products; international shipment by available special transportation vessel and

specialized contracting for steel structure engineering.The financial statements have been approved by the resolution of the Board of Directors of the Company on March 27

2025.

IV. Basis of preparation for financial statements

1. Basis of preparation

This financial statements take continuous operation as preparation basic.

2. Basis of preparation

√ Applicable Not applicable

These financial statements are prepared on the historical cost principle except for some financial instruments. If the

assets are impaired corresponding impairment provision should be accrued according to relevant provisions.V. Principal accounting policies and accounting estimates

Specific accounting policies and accounting estimates tips

√ Applicable Not applicable

The Group determines the specific accounting policies and accounting estimates based on actual production and

operation characteristics which are mainly reflected in the inventory valuation methods income recognition and

measurement and so on.

1. Statement on compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company meet the requirements of the Accounting Standards for Business

Enterprises and truly and completely reflect the financial position operating results changes in shareholders’ equity and

cash flows of the Company.

2. Accounting period

The Company adopts calendar year as the accounting year which commences on January from the 1 and ends on

December 31 of each year.

3. Operating cycle

Applicable √ Not applicable

4. Functional currency

The Company adopts RMB as the base currency for bookkeeping.ANNUAL REPORT 2024

5. Determination method and selection basis of significance standards

√ Applicable Not applicable

Item Significance standards

Significant accounts receivable with provision The amount of provision accrued on an individual basis accounts for more than 10% of the total bad

for bad debts accrued on an individual basis debt provision of accounts receivable and the amount is greater than RMB 40 million

Other significant receivables with provision for The amount of provision accrued on an individual basis accounts for more than 10% of the total bad

bad debts accrued on an individual basis debt provision of various other receivables and the amount is greater than RMB 40 million

Significant recovery and reversal of bad debt The amount of individual recovery or reversal accounts for more than 10% of the total amount of various

provision for receivables receivables and the amount is greater than RMB 40 million

The amount of individual write-off accounts for more than 10% of the total bad debt provision of various

Significant actual write-off receivables

receivables and the amount is greater than RMB 40 million

Significant changes in the book value of The amount of change in the book value of contract assets accounts for more than 30% of the balance

contract assets of contract assets at the beginning of the period

Significant contractual liability with the aging An individual contractual liability with the aging over 1 year accounts for more than 10% of the total

over more than 1 year contract liabilities and the amount is greater than RMB 100 million

Significant changes in the book value of The amount of change in the book value of contractual liability accounts for more than 30% of the

contractual liability balance of contractual liability at the beginning of the period

An individual account payable with the aging over 1 year accounts for more than 10% of the total

Significant accounts payable

accounts payable and the amount is greater than RMB 100 million

An individual other account payable with the aging over than 1 year accounts for more than 10% of the

Other siginificant payables

total accounts payable and the amount is greater than RMB 100 million

Significant construction in progress The budget of a single project is greater than RMB 300 million

Estimated liabilities of a single type account for more than 10% of the total estimated liabilities and the

Significant estimated liabilities

amount is greater than RMB 100 million

The net assets of a subsidiary account for more than 5% of the net assets of the group or the minority

Major non-wholly-owned subsidiaries interests of a single subsidiary account for more than 1% of the net assets of the group and the amount

is greater than RMB 100 million

The ending balance of a single project accounts for more than 10% of the ending balance of

Significant capitalized R&D projects

development expenditure and the amount is greater than RMB 100 million

Significant outsourced research projects A single project accounts for more than 10% of the total R&D investment

The amount of changes/adjustments accounts for more than 30% of the original contract amount and

Significant contract changes the amount of impact on the current period’s revenue accounts for more than 1% of the total revenue of

the current period

An individual investment activity accounts for more than 10% of the total cash inflows or outflows

Significant investment activities

received or paid for investment activities and exceeds RMB 300 million in value.The book value of long-term equity investment in a single investee accounts for more than 5% of the

group’s net assets and the amount is greater than RMB 100 million or the investment profit and loss

Equity in joint ventures and associates

of long-term equity investment under the equity method accounts for more than 10% of the group’s

consolidated net profit

The net assets of a subsidiary account for more than 5% of the group’s net assets or the net profit of a

Significant subsidiaries

subsidiary accounts for more than 10% of the group’s consolidated net profit

Activities that do not involve current cash receipts and payments and have an impact on current

Major activities not involving current cash

statements greater than 10% of net assets or are expected to have an impact on future cash flows

receipts and payments

greater than 10% of the corresponding total cash inflows or outflows

6. Accounting treatment of business combination under common control and not under common control

√ Applicable Not applicable

Business combination under common control

The business combination under common control is a business combination in which all of the combining enterprises

are ultimately controlled by the same party or the same parties both before and after the business combination and on

which the control is not temporary.The assets and liabilities that the combining party obtains in a business combination under common control(including

the goodwill formed by the acquisition of the combined party by the ultimate controlling party) are subject to theSection X Financial Report

corresponding accounting treatment in accordance with the carrying amount in the financial statements of the ultimate

controlling party on the combination date. The difference between the carrying amount of the net assets obtained

from the combination and the carrying amount of the consideration paid (or total par value of the shares issued) for

the combination is treated as an adjustment to capital premium in the capital reserves and the capital reserves carried

out under the former system. If the capital premium is not sufficient to absorb the difference the remaining balance is

adjusted against retained earnings.Business combination not under common control

The business combination not under common control is a business combination in which all of the combining enterprises

are not controlled by the same party or the same parties before and after the combination.Regarding consolidation not under the same control the recognizable assets liabilities and contingent liabilities of the

seller are measured upon fair value on the purchase day. The balance of the consolidation costs greater than the fair value

of the recognizable net assets of the seller is confirmed as goodwill and subsequently measured at cost less accumulated

impairment losses. In case the consolidation costs are less than the fair value of the recognizable net assets of the seller

the fair value of all recognizable assets liabilities and contingent liabilities of the seller and the measurement of the

consolidation costs is re-examined; the balance between the consolidation costs less than the fair value of recognizable

net assets of the seller after the re-examination is recognized in current profits and losses.

7. Judgment criteria of control and preparation method of consolidated financial statements

√ Applicable Not applicable

The consolidation scope of the consolidated financial statements is determined based on control and includes the

financial statements of the Company and all of its subsidiaries. Subsidiary refers to the entity controlled by the Company

(including separable parts of enterprises and the invested entity as well as structured entities controlled by the Company).If and only if the three elements below are met it can be deemed that an investor controls an invested party: the investor

possesses the power over the invested party; the investor is entitled to changeable returns due to participation in related

activities of the invested party; the investor has the ability to influence the amount of return by exercising its power over

the invested party.If the accounting policies or accounting periods adopted by the subsidiary and the Company are inconsistent when

preparing the consolidated financial statements the necessary adjustments shall be made to the subsidiary’s financial

statements based on the accounting policies and accounting periods of the Company. The assets liabilities interests

incomes expenses and cash flow incurred by transactions among the Group are offset in full upon consolidation.If the current losses borne by the minority shareholders of the subsidiary exceed the shares held by the minority

shareholders in the initial shareholders’ equity of the subsidiary the balance still offsets the minority’s equity.For the subsidiaries acquired in business combination not under common control the operating results and the cash

flows of the acquiree shall be included in the consolidated financial statements on the date of acquisition of control till

the termination of control. When preparing the consolidated financial statements the financial statements of subsidiaries

shall be adjusted based on the fair value of various identifiable assets liabilities and contingent liability confirmed on the

acquisition date.For the subsidiaries acquired in business combination under common control the operating results and the cash flows

of the combined party shall be included in the consolidated financial statements at the beginning of the combination

period. When preparing the consolidated financial statements relevant items of the previous financial statements shall

be adjusted and the reporting entity formed after the consolidation is regarded as existed since the ultimate controlling

party begins to implement control.If changes in the relevant facts and circumstances lead to changes in one or more control elements the Group will re-

evaluate whether or not the investee is controlled.Without lose of the control right change of the minority equity is deemed as capital transaction.ANNUAL REPORT 2024

8. Classification of joint venture arrangement and methodsof joint operation accounting treatment

Applicable √ Not applicable

9. Recognition criteria of cash and cash equivalents

Cash equivalents are short-term (with a maturity of three months or less from the date of acquisition) and highly liquid

investments that are readily convertible to a known amount of cash and that are subject to an insignificant risk of

changes in value.

10. Foreign currency transactions and transaction of financial statements denominated in foreign currency

√ Applicable Not applicable

In the case of a foreign currency transaction the Group translates the amount of foreign currency into the amount of the

recording currency.At the time of initial recognition the amount of foreign currency transaction shall be translated into the amount of the

recording currency at the spot rate of the transaction date (unless exchange rate fluctuations make the use of such

exchange rate inappropriate in which case the spot exchange rate on the transaction date will be used for conversion)

but the capital invested by the investor in a foreign currency shall be converted using the spot exchange rate on the

transaction date. On the date of balance sheet the currency exchange rate of the currency denominated items shall be

translated at the spot rate on the date of balance sheet. The transaction difference of settlement and monetary items

arising therefrom in addition to the difference arising from foreign currency special borrowing relating to the assets of

which the purchase and construction conform to the capitalized conditions which shall be handled in accordance with

the principle of capitalization of borrowing costs shall be included in the current profit or loss. The foreign currency

non-currency items calculated on historical cost basis are still translated at exchange rate at the initial recognition not

changing the amount of its recording currency. The foreign currency non-monetary items measured at fair value shall be

translated at the spot rate on fair value determination date and the difference arising therefrom shall be included in the

current profit or loss or other comprehensive income according to the nature of the non-monetary items.In the case of overseas business the Group translates its recording currency into RMB in preparing the financial

statements: for assets/liabilities in the balance sheet spot exchange rate on the date of balance sheet is used for

translation. As for the items under the shareholders’ equity except for those under “undistributed profits” other items

are translated using the spot exchange rate at the time of occurrence; the income and expense items in the income

statement shall be translated at the spot exchange rate of the transaction. The conversion difference of foreign currency

statements arising from above translation shall be recognized as other comprehensive income. When disposing overseas

operations other comprehensive income related to the overseas operation shall be transferred into the current profits

and losses partial disposal shall be calculated according to the proportion of disposal.Foreign currency cash flows shall be translated at the spot exchange rate on the day of occurrence of the cash flow. Cash

flows from foreign subsidiaries are translated at the average exchange rate for the period in which the cash flows occur

(unless exchange rate fluctuations make translation at that rate inappropriate in which case the exchange rate is the spot

rate on the day of occurrence of the cash flow). Effect of changes in exchange rate on cash amount is shown separately in

the cash flow statements as an adjustment item.

11. Financial instruments

√ Applicable Not applicable

Financial instrument is the contract that forms the financial assets of an enterprise and the financial liabilities or equity

instruments of the other entities.Recognition and de-recognition of financial instruments

The Group recognizes a financial asset or financial liability when becoming a party to a financial instrument contract.Once the following conditions are satisfied the Group will de-recognize financial assets (or part of financial assets or of a

portfolio of similar financial assets) i.e. writing off from its account and balance sheet:Section X Financial Report

(1) The right to receive cash flows from financial assets expires;

(2) The right to receive the cash flow from financial asset has been transferred or have assumed the obligation in the

“pass-through agreement” to pay the collected cash flow timely to the third party in full; and has transferred substantially

almost all the risks and rewards of ownership of the financial asset or although does not transfer or retain substantially

nearly all of the risks and rewards of ownership of the financial asset but has given up the control over the financial asset.In the event that the liability of a financial liability has been fulfilled cancelled or expired the financial liabilities shall be

de-recognized. If the existing financial liability is replaced by the same creditor with another financial liabilities of virtually

entirely different terms or the terms of the existing liabilities are almost entirely modified substantially such substitutions

or modifications will be handled as the derecognition of the original liability and the recognition of new liabilities and

the difference will be included in current profit or loss.In case of trading financial assets in the conventional way such financial assets will be recognized and de-recognized

on the trading day. Trading financial assets in the conventional way refers to purchasing or selling financial assets in

accordance with the terms and conditions of the contract and delivering financial assets within the time limit prescribed

in the law or the prevailing practice in accordance with the terms and conditions of the contract. Trading day is the date

on which the Group commits to buy or sell financial assets.Classification and measurement of financial assets

At the initial recognition the Group’s financial assets based on the Group’s management model of financial assets and

the contract cash flow characteristics of financial assets are classified as financial assets measured at amortized cost

financial assets measured at fair value through the other comprehensive income and financial assets measured at fair

value through the current profit or loss.Financial assets are measured at fair value at initial recognition while the accounts receivable or notes receivable arising

from sales of goods or rendering of services excluding the significant financing composition or the financial composition

for over one year are initially measured at the transaction price.For financial assets measured at fair value through the current profit or loss relevant transaction costs are directly

included in the current profit or loss while the transaction costs relevant to other financial assets are included in the initial

recognition amount.The subsequent measurement of financial assets depends on the classification thereof:

Investment in debt instruments measured at amortized cost

Financial assets simultaneously meet the following conditions are classified as the financial assets measured at amortized

cost: the management model of such financial assets aims at the collection of contract cash flows; according to the terms

in the contract for such financial assets the cash flows generating on the special date are paid at the interest for the

principal and the unpaid principal. Such financial assets are recognized as interest income by the effective rate method

and the gains or losses from the derecognition modification or impairment thereof are included in the current profit or

loss.Investment in debt instruments measured at fair value through other comprehensive income

If financial assets meet the following conditions at the same time the Group classifies them as financial assets at fair value

through other comprehensive income: the Group’s business model for the management of the financial assets is aimed

at both the collection of contract cash flow and the sale of the financial assets; the contractual terms of the financial asset

stipulate that the cash flow generated at a particular date is only the payment of the principal and interest based on the

outstanding principal amount. The interest income of such financial assets is recognized by the effective interest method.At derecognition of financial assets the accumulated gains or losses previously included in other comprehensive income

are transferred from the other comprehensive income to the current profit or loss.Investment in equity instruments measured at fair value through the other comprehensive income

The Group irrevocably chooses to designate some non-trading equity instruments as the financial assets measured at

fair value through the other comprehensive income and only include the relevant dividends revenue (except for that

partially recovered as the investment cost) in the current profit or loss and the subsequent changes in fair values in theANNUAL REPORT 2024

other comprehensive income without the provision for impairment. At derecognition of financial assets the accumulated

gains or losses previously included in other comprehensive income are transferred from the other comprehensive income

to the retained earnings.Financial assets measured at fair value through the current profit or loss

The financial assets other than the financial assets measured at amortized cost and the financial assets measured at fair

value through the other comprehensive income are classified as the financial assets measured at fair value through the

other comprehensive income. For such financial assets the subsequent measurement is made at fair value and changes

in fair value are included in the current profit or loss.Classification and measurement of financial liabilities

At the initial recognition the Group’s financial liabilities are classified as: financial liabilities measured at fair value through

the current profit or loss and financial liabilities measured at amortized cost. For financial liabilities measured at fair value

through the current profit or loss relevant transaction costs are directly included in the current profit or loss while the

transaction costs relevant to financial liabilities measured at amortized cost are included in the initial recognition amount.The subsequent measurement of financial liabilities depends on the classification thereof:

Financial liabilities measured at fair value through the current profit or loss

Financial liabilities measured at fair value through the current profit or loss include the trading financial liabilities (including

the derivative instruments belonging to financial liabilities) and the financial liabilities measured at fair value through the

current profit or loss. The subsequent measurement of the trading financial liabilities (including the derivative instruments

belonging to financial liabilities) is made at fair value and changes in fair value are included in the current profit or loss.For the financial liabilities measured at fair value through the current profit or loss the subsequent measurement is

made at fair value and the changes in fair value are included in the current profit or loss except that the changes in fair

value caused by the changes in the Group's credit risks are included in the other comprehensive income; if including the

changes in fair value caused by the changes in the Group's credit risks in the other comprehensive income may cause

or exacerbate the accounting mismatch in profit or loss the Group will include all changes in fair value (including the

amounts affected by the changes in the Group’s credit risks) in the current profit or loss.Financial liabilities measured at amortized cost

The subsequent measurement of such financial liabilities is made at amortized cost by the effective rate method.Impairment of financial instruments

Based on the expected credit losses the Group makes the provision for impairment and recognizes the loss provisions for

the financial assets measured amortized cost and the investment in debt instruments measured at fair value through the

other comprehensive income.For the receivables excluding significant financing component the Group measures the loss provision based on the

amount equivalent to the expected credit loss over the whole duration by the simplified measurement method.Except for the above financial assets subject to the simplified measurement method on each balance sheet date

the Group makes assessment on whether the credit risk in financial assets has had significant increase after the initial

recognition. If the credit risk does not significantly increase after the initial recognition standing at the first level the

Group will measure the loss provision based on the amount of expected credit loss over the next 12 months and

calculate the interest income based on the book balance at the effective interest rate; if the credit risk has significantly

increased after the initial recognition without any credit impairment standing at the second level the Group will

measure the loss provision based on the amount equivalent to the expected credit loss over the whole duration; in case

of any credit impairment after the initial recognition standing at the third level the Group will measure the loss provision

based on the amount of expected credit loss over the whole duration and calculate the interest income based on the

amortized cost at the effective interest rate. For financial instruments only with relatively low credit risk on the balance

sheet date the Group assumes that such credit risk does not significantly increase after the initial recognition.The Group evaluates the expected credit loss of financial instruments individually and by portfolio. After taking the credit

risk characteristics of different customers into account based on common risk characteristics the Group evaluated theSection X Financial Report

expected credit loss on accounts receivable and contract assets by the aging portfolio. The Group determined the aging

of accounts receivable based on the date on which the accounts receivable were recorded. Except for the aforementioned

financial instruments for which expected credit losses were assessed by portfolio the Group assessed their expected

credit losses individually. The Group recognized accounts receivable and contract assets of customers who encountered

financial difficulties or have contract disputes as assets for provision accrued on an individual basis. The basis for making

provisions by portfolio was to classify customers with similar credit risk characteristics into the same portfolio based on

the nature of the customers.For the Group’s disclosure of the judgment standards for significant increase of credit risk and definition of assets with

credit impairment see Note XII for details.The factors reflected in the Group’s approach to measuring expected credit losses on financial instruments include the

unbiased probability weighted average amount determined by evaluating a range of possible outcomes the time value

of money and reasonable and substantiated information about past events current conditions and projections of future

economic conditions that is available at the balance sheet date without undue additional cost or effort.When the Group ceases to expect reasonably the contract cash flows of financial assets which can be recovered in whole

or in part the Group will directly write off the book balance of such financial assets.Financial instrument offset

Financial assets and financial liabilities are presented in the balance sheet at the net amount after mutual offset when the

following conditions are met simultaneously: possess the legal right to offset the recognized amount and such right is

currently executable; intend to settle at net amount or cash such financial assets or liquidate such financial liabilities.Transfer of financial asset

If the Group has transferred nearly all the risks and rewards associated with the ownership of financial assets to the

transferee such financial assets will be de-recognized; if the Group retains nearly all the risks and rewards associated with

the ownership of financial assets such financial assets will be continuously recognized.If the Group neither transfers nor retains nearly all the risks and rewards associated with the ownership of the financial

assets the following treatments will be adopted based on different circumstances: if the Group has given up its control

over the financial assets the financial assets will be derecognized and the assets and liabilities arising therefrom will

be recognized; if the Group does not give up its control over the financial assets the financial assets will be recognized

to the extent of its continuing involvement in the transferred financial assets while relevant liabilities are recognized

accordingly.

12. Notes receivable

Applicable √ Not applicable

13. Accounts receivable

Applicable √ Not applicable

14. Receivables financing

Applicable √ Not applicable

15. Other receivables

Applicable √ Not applicable

16. Inventories

√ Applicable Not applicableANNUAL REPORT 2024

Inventory categories delivery pricing methods inventory management systems and amortization methods for low-value

consumables and packaging materials

√ Applicable Not applicable

Inventories include the raw materials outsourcing components and parts goods in process and stock commodities.Inventories are initially measured at the cost. The inventory cost includes the procurement cost processing cost and other

cost. The actual cost of raw materials in transit is determined by the weighted average method. The actual cost of finished

products in transit is determined by the weighted average method and individual valuation method.Perpetual inventory system is adopted for inventories.On the balance sheet date the inventory is measured at its cost or its net realizable value whichever is lower; if the cost

is higher than the net realizable value the provision for inventory depreciation will be made and included in the current

profit or loss. The net realizable value in the routine activities refers to amount of the estimated selling price of inventory

minus the estimated cost to completion estimated selling expense and relevant taxes and surcharges. At the time of

making the provision for inventory depreciation the provision for depreciation of raw materials is made by category and

that of goods in process and stock commodities is made by each single inventory item.Contract performance cost classified as current assets is detailed in inventories.Method of recognizing and accruing provision for inventory depreciation

Applicable √ Not applicable

The portfolio categories and determination basis for making accruing provision inventory depreciation according to the

portfolio and the determination basis for the net realizable value of different categories of inventory

Applicable √ Not applicable

The calculation method and determination basis of the net realizable value of inventory based on inventory aging

Applicable √ Not applicable

17. Contract assets

√ Applicable Not applicable

Recognition method and criteria of contract assets

√ Applicable Not applicable

The Group presents contract assets or liabilities in the balance sheet according to the relationship between the fulfillment

of performance obligations and customer payments. After offsetting the contract assets and contract liabilities under the

same contract the Group presents them in net amount.Contract assets

A contract asset is recognized when an entity transfers goods or services to a customer prior to the customer’s payment

of consideration or before the payment is due provided that the entity’s right to consideration is conditional upon factors

other than the passage of time. Upon obtaining an unconditional right to payment the contract asset is reclassified as a

trade receivable.Portfolio categories and determination basis for provisions for bad debts based on credit risk characteristics

Applicable √ Not applicable

Aging calculation method based on aging recognition of credit risk characteristics portfolio

Applicable √ Not applicable

Judgment criteria for determination of provision accrued on an individual basis based on the provision for bad debts

accrued on an individual basis

Applicable √ Not applicableSection X Financial Report

18. Held-for-sale non-current assets or disposal groups

Applicable √ Not applicable

Recognition criteria and accounting treatment methods for held-for-sale non-current assets or disposal groups

Applicable √ Not applicable

Recognition criteria and presentation methods for discontinuing operation

Applicable √ Not applicable

19. Long-term equity investments

√ Applicable Not applicable

Long-term equity investments include the equity investments in subsidiaries joint ventures and associates.Long-term equity investments are initially measured at the initial investment cost. The initial investment cost of a long-

term equity investment acquired through the business combination under common control is recognized at book

value of owners’ equity acquired from the combinee on the combination date in the consolidated financial statements

of the ultimate controller; the difference between the initial investment cost and the book value of the combination

consideration is used to adjust the capital reserves (if the capital reserves are insufficient to offset the retained earnings

will be offset).The initial investment cost of a long-term equity investment acquired through business combination not under common

control is recognized at the combination cost (if the business combination not under common control is realized

through several transactions by step the sum of the book value of the equity investment of the acquiree held before the

acquisition date and the cost of investment newly added on the acquisition date is recognized as the initial investment

cost). For long-term equity investments acquired not through business combination their initial investment costs are

determined by the following ways: if the long-term equity investment is acquired through cash payment the initial

investment cost will be the sum of the acquisition price actually paid and the costs taxes and other necessary costs

which are directly relevant to the long-term equity investment; if the long-term equity investment is acquired by issuing

equity securities the initial investment cost will be the fair value of the equity securities issued.

20. Investment properties

(1). If the cost measurement model is adopted:

Depreciation or amortization method

Investment property refers to the real estate held for generating rent and/or capital appreciation.The investment property shall be initially measured at cost. Subsequent expenses related to investment properties if

the economic benefits associated are likely to flow in and its cost can be measured reliably should be recorded in the

cost of investment property. Otherwise such subsequent expenses should be included in current profits or losses upon

occurrence.The subsequent measurement of an investment property shall be conducted by the Group under the cost method and

the land use right and buildings shall be amortized and depreciated according to the expected useful life and net residual

rate of the investment property. The expected useful lives net residual value rate and annual depreciation (amortization)

rate of the investment properties are as follows:

Estimated useful lives Estimated residual value rate Annual depreciation (amortization) rate

Buildings and constructions 30 years 0% 3.3%

Determined according to the estimated net residual value

Land use right Land useful lives 0%

and useful life for the land useful lives

The Group shall review estimated useful lives estimated net residual value and depreciation (amortization) methods of

the investment properties at the end of each year and shall make adjustment when necessary.When an investment property is changed for self-use upon change the investment property shall be converted into fixedANNUAL REPORT 2024

assets or intangible assets. When the self-use property is changed to earn rentals or for capital appreciation upon change

fixed assets or intangible assets shall be converted into investment properties. When there is a conversion the book value

before the conversion shall be regarded as the book value after the conversion.

21. Fixed assets

(1) Recognition criteria

√ Applicable Not applicable

Fixed assets will only be recognized when the economic benefits relating to the fixed assets may flow into the Group and

the costs of the fixed assets can be measured reliably. If the subsequent disbursements relevant to a fixed asset meet

the recognition conditions they shall be recorded in the cost of fixed asset and the book value of the replaced part shall

be derecognized; otherwise they shall be recognized in the current profits or losses or the cost of the underlying asset

depending on the nature of the benefit derived.Fixed assets are initially measured at cost. The costs of externally acquired fixed assets comprise their purchase prices

related taxes and surcharges and any attributable expenditure incurred to prepare the asset for its intended use.

(2) Depreciation method

√ Applicable Not applicable

Category Depreciation method Useful lives (year) Residual value rate Annual depreciation rate

Buildings and constructions Straight-line method 20-40 years 0% 2.5%-5%

Mechanical equipment Straight-line method 3-20 years 0% 5%-33.3%

Office and electronic equipment Straight-line method 3-5 years 0% 20%-33.3%

Transportation facilities (excluding ship) Straight-line method 5 0% 20%

Vessel Straight-line method 10-30 years 5%/10% 3%-9.5%

The Group shall review useful lives estimated net residual value and depreciation methods of the fixed assets at the end

of each year and shall make adjustment when necessary. Adjustments are made.

22. Construction in progress

√ Applicable Not applicable

The Group recognizes the cost of the construction in progress at the actually incurred expenditures including all types

of necessary expenditures incurred during the construction period the capitalized borrowing costs incurred prior to the

time when the construction is brought to the expected conditions for use and other relevant costs.The construction in progress is converted into fixed assets after it reaches the expected conditions for use.Standard for carrying forward fixed assets

Houses and buildings have passed the preliminary acceptance and reached the expected usable state or they are actually

Buildings and constructions

put into use whichever is earlier

Mechanical equipment They meet the design requirements or are actually put into use after installation and commissioning whichever is earlier

Office and electronic

They meet the design requirements or are actually put into use after installation and commissioning whichever is earlier

equipment

Transportation facilities

They meet the design requirements or are actually put into use after installation and commissioning whichever is earlier

(excluding ship)

Vessel They meet the design requirements or are actually put into use after installation and commissioning whichever is earlier

23. Borrowing costs

√ Applicable Not applicable

The borrowing costs that can directly attributable to the acquisition and construction or production of assets complying

with the capitalization conditions shall be capitalized and other borrowing costs shall be included into current profit and

loss.Section X Financial Report

When capital expenditure and borrowing costs have incurred and acquisition and construction or production activities

necessary for the assets to reach the intended use or sale has begun the Company will capitalize borrowing costs.Capitalization of borrowing costs should cease when the acquired and constructed or produced assets eligible for

capitalization have reached the working condition for their intended use or sale. The borrowing costs incurred thereafter

shall be included in the current profit or loss.During the period of capitalization the capitalized amount on interest of each accounting period shall be determined

in accordance with the following provisions: 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; the interest of general borrowings to be capitalized should be calculated by multiplying the weighted

average of asset disbursements of the part of accumulated asset disbursements exceeding special borrowings by the

weighted average rate of used general borrowings.If the acquisition and construction or production activities of assets eligible for capitalization are abnormally interrupted

due to the matters other than necessary procedures for such assets to reach the working conditions for its intended

use or sale and such circumstance lasts for more than three months the capitalization of borrowing costs should be

suspended. Borrowing costs incurred during the interruption are recognized as the current profit or loss and continue to

be capitalized until the acquisition construction or production of the asset restarts.

24. Biological assets

Applicable √ Not applicable

25. Oil and gas assets

Applicable √ Not applicable

26. Intangible assets

(1) The useful life and its judgment basis estimation conditions amortization method or review procedures

√ Applicable Not applicable

The useful life of intangible assets is as follows at the straight-line method over its useful life.Useful life Judgment basis

Land use right Land useful lives The period of land use rights

Software use fees 5 years Service life of software

Proprietary technology 10 years The expected service life in combination with the product lifecycle

(2). Allocation scope and related accounting method for R&D expenditure

√ Applicable Not applicable

The Group’s expenditures for its internal research and development projects are classified into research expenditures

and development expenditures. The expenditures in research phase will be included in the current profit or loss on

occurrence. The development expenditures will be capitalized only when all of the following conditions are satisfied

simultaneously: It is feasible technically to finish intangible assets for use or sale; It is intended to finish and use or sell

the intangible assets; The usefulness of methods for intangible assets to generate economic benefits shall be proved

including being able to prove that there is a potential market for the products manufactured by applying the intangible

assets or there is a potential market for the intangible assets itself or the intangible assets will be used internally; It is

able to finish the development of the intangible assets and able to use or sell the intangible assets with the support

of sufficient technologies financial resources and other resources; and the expenditures attributable to the intangible

asset during its development phase can be measured reliably. Development expenditures that do not meet the above

conditions are included in the current profit or loss on occurrence.ANNUAL REPORT 2024

27. Long-term asset impairment

√ Applicable Not applicable

The Group recognizes the asset impairment under the following methods except for inventories contract assets and

assets related to contract cost deferred income tax financial assets and assets held for sale. The Group shall on the

balance sheet date make a judgment on whether there is any indication that the assets may impair. If such indication

does exist the Group shall estimate the recoverable amount and carry out an impairment test. Impairment tests for

goodwill caused by business combination intangible assets with indefinite useful lives and intangible assets not reaching

usable condition shall be conducted at the end of every year whether they have signs of impairment or not.The recoverable amounts of assets are the higher of their fair values less costs to sell and the present values of the future

cash flows expected to be derived from the assets. The Group shall on the basis of single item assets estimate the

recoverable amount. Where it is difficult to do so it shall determine the recoverable amount of the group assets on the

basis of the asset group to which the asset belongs. The recognition of an asset group shall base on whether the main

cash inflow generated from the asset group is independent of those generated from other assets or other group assets.Where the recoverable amount of an asset or an asset group is lower than its book value the book value of the asset or

asset group shall be written down to their recoverable amounts. The write-downs are recorded into the current profit or

loss and the provision for asset impairment are made accordingly at the same time.When the Company makes an impairment test of goodwill it shall as of the purchasing day apportion the book value

of the goodwill to the relevant asset groups or combination of asset groups by a reasonable method. The related asset

group or combination of asset groups shall be the asset group or combination of asset groups that can benefit from the

synergy effect of business combination and shall be smaller than the operating segments as determined by the Group.The asset group or combination of asset groups containing the goodwill shall be compared by their carrying value

and recoverable amount and if the recoverable amount is less than carrying value the amount impairment loss is first

allocated to offset the carrying value of the goodwill in the asset group or the combination of asset groups and then will

be used to offset the carrying value of other assets pro rata in accordance with the proportion of the carrying value of

other assets other than goodwill in the asset groups and that of the combination of asset groups.Once the loss of assets impairment is recognized it is not allowed to be reversed even if the value can be recovered in

subsequent period.

28. Long-term deferred expenses

√ Applicable Not applicable

Long-term deferred expenses shall be amortized at the straight-line method and the amortization period is set out as

follows:

Amortization period

Improvement of fixed assets acquired under the operating lease Expected beneficial period

29. Contract liabilities

√ Applicable Not applicable

The Group presents contract assets or liabilities in the balance sheet according to the relationship between the fulfillment

of performance obligations and customer payments. After offsetting the contract assets and contract liabilities under the

same contract the Group presents them in net amount.Contract liabilities

A contract liability is recognized when an entity receives consideration or has an unconditional right to receive it with an

obligation to transfer goods or services to the customer in advance of transferring goods or services to the customer.Section X Financial Report

30. Employee compensation

(1) Accounting treatment of short-term compensation

√ Applicable Not applicable

During the accounting period of an employee' providing services the short-term compensation actually incurred is

recognized as liabilities and includes them in the current profit or loss or the related asset costs.

(2) Accounting treatment of post-employment benefits

√ Applicable Not applicable

The employees of the Group participated in the endowment insurance and unemployment insurance managed by the

local government and also participated in the enterprise annuity and the corresponding expenses were included in the

relevant asset costs or the current profit or loss when incurred.

(3) Accounting treatment of termination benefits

Applicable √ Not applicable

(4) Accounting treatment of other long-term employee benefits

Applicable √ Not applicable

31. Estimated liabilities

√ Applicable Not applicable

Except for contingent consideration and contingent liabilities assumed in business combination not under the same

control when the obligations related to contingencies meet the following conditions the Group recognizes them as

estimated liabilities: this obligation is a present obligation of the Group; the performance of such obligation is likely to

result in outflow of economic benefits from the Group; the amount of the obligation can be measured reliably.The estimated liabilities are initially measured as the best estimate of expenses required for the performance of relevant

present obligations by considering comprehensively the risks with respect to contingencies uncertainties and the time

value of money. The book value of estimated liabilities will be checked and properly adjusted on balance sheet date so as

to reflect the current best estimate.

32. Share-based payment

√ Applicable Not applicable

A share-based payment transaction must be classified as either an equity-settled transaction or a cash-settled transaction.An equity-settled share-based payment transaction means a share-based payment transaction in which the Group

receives services as consideration for its own shares or other equity instruments.An equity-settled share-based payment in exchange for services provided by the employee is measured at the fair value

of the equity instrument granted to such employee. If it is immediately exercisable upon grant it shall be included in

the relevant costs or expenses at fair value on the grant date and the capital reserves shall be increased accordingly.If it is exercisable only after completing the services within the vesting period or achieving the specified performance

conditions services received during the current period shall be included in the relevant costs or expenses at the fair

value on the grant date and the capital reserves shall be increased accordingly based on the optimum estimates of the

number of exercisable equity instruments on each balance sheet date during the vesting period. Fair value of the equity

instruments is determined by option pricing model. For details see Note V.31.If the terms and conditions of equity-settled share-based payment transactions are modified the services received shall

be recognized as if those terms and conditions had not been modified at the least. In addition all modifications that

increase the fair value of equity instruments granted or are beneficial to the employee on the modification date are

recognized as an increase in the services received.When an equity-settled share-based payment transaction is cancelled it is treated as an acceleration of vesting on the

cancellation date and the remaining expense is recognized immediately. If employees or other parties have the choice toANNUAL REPORT 2024

fulfill a non-vesting condition the failure to meet such condition during the vesting period is regarded as a cancellation

of equity-settled share-based payment transaction. However if new equity instruments are granted and on the date

when those new equity instruments are granted they are identified as a replacement for the cancelled the entity shall

account for the granting of replacement equity instruments in the same way as a modification of terms and conditions of

the original equity instruments.A cash-settled share-based payment is measured at the fair value of the liability the Group assumes based on shares

or other equity instruments. If it is immediately exercisable upon grant it shall be included in the relevant costs or

expenses at the fair value of the assumed liability on the grant date and the liabilities shall be increased accordingly.If it is exercisable only after completing the services within the vesting period or achieving the specified performance

conditions services received during the current period shall be included in the relevant costs or expenses and

corresponding liability at the fair value of the assumed liability on the grant date based on the optimum estimates of the

exercisable conditions on each balance sheet date during the vesting period. Fair value of the liability is re-measured on

each balance sheet date before settlement of the relevant liability and the settlement date and the changes are included

in the current profits and losses.

33. Preferred shares perpetual bonds and other financial instruments

√ Applicable Not applicable

After the maturity of the perpetual bonds issued by the Group the Group has the right to extend them for an unlimited

number of times. For the coupon interest of the perpetual bonds the Group has the right to postpone the payment and

the group has no contractual obligation to pay cash or other financial assets. They are classified as equity instrument.

34. Revenue

(1) Accounting policies for revenue recognition and measurement disclosed by business type

√ Applicable Not applicable

The Group recognizes revenue when it fulfills the performance obligation in the contract that is when the customer

obtains control over the relevant goods or services. The acquisition of control of relevant goods or services means to be

able to dominate the use of the goods or the rendering of the services and obtain almost all the economic benefits from

them.Manufacturing contracts on large-sized port equipment heavy equipment and steel structure products

The manufacturing contracts on large-sized port equipment heavy equipment and steel structure products between the

Group and customers usually only include the performance obligations of transferring large-sized port machinery and

equipment heavy equipment and steel structure products customized for customers.The large-sized port equipment heavy equipment and steel structure products provided by the Group during the

performance of the contract are irreplaceable however most of the large-sized port equipment heavy equipment sales

contracts and the manufacturing contracts of some steel structure products do not stipulate that the Group has the right

to collect money for the performance part that has been completed so far in the whole contract period. This part of the

contract does not meet the performance obligation conditions within a certain period of time and the Group takes it as

the performance obligation at a certain point of time. The Group generally recognizes the revenue at the time point of

control transfer of relevant port machinery and equipment heavy equipment and steel structure products on the basis of

comprehensive consideration of the following factors: the current right to receive payment of goods the transfer of main

risks and rewards in the ownership of goods the transfer of legal ownership of goods the transfer of physical assets of

goods and the acceptance of the goods by customers.Manufacturing contracts on large-sized port equipment heavy equipment and steel structure products

In addition based on the terms of sales contracts on individual large-sized port equipment and heavy equipment and the

manufacturing contracts on some steel structure products the Group has the right to collect money for the performance

part that has been completed so far during the whole contract period. The Group takes it as the performance obligation

to perform in a certain period of time and recognizes the revenue according to the performance progress except theSection X Financial Report

cases where the performance progress cannot be reasonably determined. Based on input method the Group determines

the corresponding performance progress of large-sized port equipment and heavy equipment contracts according

to the proportion of the cost incurred in the total estimated cost. Based on output method the Group determines the

performance progress of the steel structure manufacturing contract according to the proportion of the accumulated

processing tons to the estimated total processing tons. Where the performance progress cannot be reasonably

determined and the cost incurred by the Group is expected to be reimbursed the revenue shall be recognized according

to the amount of the cost that has incurred until the performance progress can be reasonably determined.Contracts on rendering of shipping and lifting services

The service contracts between the Group and its customers mainly involve special shipping services and hoisting services.The revenue of special shipping services rendered by the Group is recognized by time period method and the progress

of performance obligations is determined according to the proportion of the number of days transported in the total

estimated days of transportation. The revenue of shipping service shall be recognized when the service is completed.Material sales contract

The material sales contract between the Group and customers usually only includes the performance obligation of

transferring spare parts and other materials. The Group generally recognizes the revenue at the time of control transfer of

relevant spare parts and other materials on the basis of comprehensive consideration of the following factors: the current

right to receive payment of goods the transfer of main risks and rewards in the ownership of goods the transfer of legal

ownership of goods the transfer of physical assets of goods and the acceptance of the goods by customers.Rendering of building services

The building service contract between the Group and customers usually includes the performance obligation of

infrastructure construction. As the customer can control the assets under construction during the performance by the

Group the Group takes them as the performance obligations within a certain period of time and recognizes the revenue

according to the performance progress except that the performance progress cannot be reasonably determined. By input

method the Group determines the performance progress of the services based on the cost incurred. If the performance

progress cannot be reasonably determined and the cost incurred by the Group is expected to be compensated the

revenue shall be recognized according to the cost amount incurred until the performance progress can be reasonably

determined.Build and transfer contract (BT contract)

Activities under the BT contracts usually include build and transfer. With respect to the building services provided by

the Group during the building period the revenue of construction service contracts is recognized in accordance with

the above accounting policies. The construction contract revenue is measured at the fair value of the consideration

receivable and the “long-term receivables” are recognized and measured at the same time by effective interest rate

method and the amortized cost and offset upon receipt of payment of the project owner.PPP project contract

PPP project contract refers to the contract concluded between the Group and the government party on PPP project

cooperation in accordance with laws and regulations which also meets the following characteristics (hereinafter referred

to as “dual characteristics”):

(1) The Group uses PPP project assets to provide public goods and services on behalf of the government party during the

contracted operation period;

(2) The Group is compensated for the public goods and services it provides within the contracted period.

Activities under the PPP contracts usually include construction operation and transfer. During the building period the

Group determines whether the Group is the principal responsible person or the agent in accordance with the accounting

policy of the principal responsible person/agent below. If the Group is the principal responsible person contract revenue

from construction services and contract assets are recognized accordingly and the revenue of construction contract is

measured at the fair value of the consideration received or receivable. During the operating phase the Group carries out

accounting treatment as follows accordingly:ANNUAL REPORT 2024

(1) Pursuant to the contractual provisions of the PPP project during the project operation if the conditions for collection

of the cash (or other financial assets) of a definite amount can be met the amount of consideration of relevant PPP project

assets or the recognized amount of construction revenue is recognized as contract assets until the Group has the right to

receive the consideration (which depends only on the passage of time). When the Company has the right to collect such

consideration (which depends only on the passage of time) the amount of consideration of relevant PPP project assets

or the recognized amount of construction revenue is recognized as accounts receivable and subject to the accounting

treatment specified in the accounting policy for financial instruments. When the PPP project assets reach their expected

usable conditions the difference of the amount of consideration of relevant PPP project assets or the recognized amount

of construction revenue in excess of the cash (or other financial assets) of a definite amount is recognized as intangible

assets.

(2) Pursuant to the contractual provisions of the PPP project the Group has the right to collect payments from the

recipient of public goods and services but such right shall not be an unconditional collection right if the payment

amount is uncertain. When the PPP project assets reach their expected usable conditions the amount of consideration

of relevant PPP project assets or recognized amount of construction revenue is recognized as an intangible asset and

subject to the accounting treatment specified in the accounting policy for intangible assets above.PPP project contract

In the operation stage when services are provided recognize the corresponding revenue; Daily maintenance or repair

expenses incurred shall be recognized as current expenses. Daily maintenance or repair expenses incurred shall be

recognized as current expenses.The Group presents the construction expenditures incurred during the construction period of PPP projects accounted

as intangible assets as cash flows from investing activities. The Group presents the construction expenditures incurred

during the construction period of PPP projects other than those mentioned above as cash flows from operating activities.Variable consideration

If there is variable consideration in the contract the Group shall determine the best estimate of variable consideration

according to the expected value or the most likely amount but the transaction price including variable consideration

shall not exceed the amount that the accumulated recognized revenue is highly unlikely to have a significant reversal

when the relevant uncertainty is eliminated. On each balance sheet date the Group re-estimates the amount of variable

consideration to be included in the transaction price.Consideration payable to customers

In the case of consideration payable to customers the Group shall use such consideration payable to offset the

transaction price and then offset the current income at the later of the recognition of the relevant income and the

payment (or commitment to pay) of the customer consideration unless the consideration payable to customers is for the

purpose of obtaining other clearly distinguishable goods or services from the customer.Warranty obligations

According to the contract and legal provisions the Group provides quality assurance for the goods sold or the assets

built. For the guarantee type quality assurance that the goods sold to customers meet the established standards the

Group shall perform accounting treatment in accordance with Note V. For the service quality assurance for a separate

service provided in addition to guaranteeing that the goods sold meet the established standards the Group shall take

it as a single performance obligation allocate part of the transaction price to the service quality assurance according to

relative proportion of the single selling price of the goods and service quality assurance and recognize the revenue when

the customer acquires service control right. In assessing whether quality assurance provides a separate service in addition

to ensuring that the goods sold meet established standards the Group shall consider whether the quality assurance is

legal requirement quality assurance period and the nature of the Group’s commitment to perform the tasks.Principal responsible person/agent

The Group determines whether it is the principal responsible person or the agent in the transaction according to whether

it has the right to control the goods or services before transferring them to customers. In case the Group can control the

goods and other products before transferring them to customers the Group shall be the principal responsible personSection X Financial Report

and recognize the revenue according to the total consideration received or receivable. Otherwise the Group shall be the

agent and recognize the revenue according to the amount of commission fees or handling charges that it is expected

to be entitled to receive and the amount shall be recognized according to the net amount of the total consideration

received or receivable after deducting the price payable to other relevant parties or according to the fixed commission

amount or proportion.

(2) Different operating models for similar businesses involve different revenue recognition methods and measurement

methods

Applicable √ Not applicable

35. Contract cost

√ Applicable Not applicable

The Group’s assets related to contract cost include contract performance cost and contract acquisition cost. According to

the liquidity they are presented in inventories other current assets and other non-current assets respectively.If the incremental cost incurred by the Group to get the contract is expected to be recovered it shall be recognized as an

asset as the contract acquisition cost unless the amortization period of the asset does not exceed one year.The cost incurred by the Group in performing the contract which is not applicable to the specification scope of

inventories fixed assets or intangible assets and meets the following conditions simultaneously shall be recognized as an

asset as the contract performance cost:

(1) The cost is directly related to a current or expected contract including direct labor direct materials manufacturing

expenses (or similar expenses) costs clearly borne by the customer and other costs incurred solely as a result of the

contract;

(2) The cost increases the enterprise’s resources for fulfilling its performance obligations in the future;

(3) The cost is expected to be recovered.

The Group’s assets related to contract cost are amortized on the same basis as the recognition of income related to the

assets and are included in the current profit or loss.If the book value of the assets related to contract cost is higher than the difference between the following two items the

Group will make provision for impairment of the excess part and recognize it as the loss of asset impairment:

(1) The remaining consideration expected to be obtained by the enterprise due to the transfer of goods or services related

to the assets;

(2) The cost expected to be incurred for the transfer of relevant goods or services.

36. Government subsidies

√ Applicable Not applicable

Government subsidies shall be recognized only if the Company is able to comply with the conditions for the government

subsidies and is likely to receive the government subsidies. If a government subsidy is a monetary asset it shall be

measured at the amount received or receivable. If a government subsidy is a non-monetary asset it shall be measured at

its fair value; and if its fair value cannot be obtained in a reliable way it shall be measured at a nominal amount.If the government subsidies shall be used for the construction or the generation in otherwise of the long-term assets as

required by the government documents they are the assets-related government subsidies; if government documents

have no relevant provisions and such government subsidies are based on the condition of the construction or the

generation in otherwise of the long-term assets judged on the basis of basic conditions required for obtaining such

government subsidies they shall be deemed as the assets-related government subsidies other government subsidies in

addition to the said ones shall be deemed as the income-related government subsidies.Income-related government subsidies which are used to compensate for relevant costs or losses in subsequent periods

will be recognized as deferred income and will be included in the current profit or loss or be used to write off relevant

costs in the period when relevant costs or losses are recognized.ANNUAL REPORT 2024

If assets-related government subsidies are recognized as deferred income they shall be included in profit or loss by stages

by a reasonable and systematic method within the useful lives of relevant assets. (However the government subsidies

measured at nominal amounts are directly included in the current profit or loss); if the relevant assets are sold transferred

scrapped or damaged before the end of their useful lives the undistributed balance of relevant deferred income is

transferred to the profit or loss from the current period of asset disposal.

37. Deferred income tax assets/deferred income tax liabilities

√ Applicable Not applicable

Deferred income tax is accrued under the balance sheet liability method by the Group based on the temporary difference

between book value of assets and liabilities on the balance sheet date and tax base as well as the balance between the

book value of items which have not been recognized as assets or liabilities but the tax base can be determined according

to the tax law and the tax base.Taxable temporary differences are recognized as deferred income tax liabilities except that

(1) The taxable temporary differences generate in the following transactions: the initial recognition of goodwill or the

initial recognition of assets or liabilities arising from transactions with the following characteristics: the transaction is not

a business combination and will not affect accouting profits nor affect the taxable income or deductible losses when

the transaction occurs and initial recognition of assets and liabilities does not lead to the generation of equal taxable

temporary differences and deductible temporary differences.

(2) For taxable temporary differences related to the investments in subsidiaries joint ventures and associates the time for

the reversal of the taxable temporary differences can be controlled and the taxable temporary differences are likely not to

be reversed in the foreseeable future.For deductible temporary differences deductible losses and tax credits that can be carried forward to subsequent

periods deferred tax assets arising therefrom are recognized to the extent that future taxable income will be probable

to be available against the deductible temporary differences deductible losses and tax credits unless the deductible

temporary differences arise from the following transactions:

(1) The deductible temporary difference is generated in the following transaction: the transaction is not a business

combination and will not affect accounting profits nor affect the taxable income or deductible losses when the

transaction occurs and initial recognition of assets and liabilities does not lead to the generation of equal taxable

temporary differences and deductible temporary differences.

(2) For the deductible temporary differences arising from investments in subsidiaries associates and joint ventures the

temporary differences may be reversed in the foreseeable future and they can be used to offset the taxable income of

deductible temporary differences in the future.On the balance sheet date the Company shall measure deferred income tax assets and deferred income tax liabilities at

the applicable tax rate during the period for expected recovery of assets or settlement of liabilities and reflect the impacts

of the income tax by means of expected recovery of assets or settlement of liabilities on the balance sheet date.On the balance sheet date the Group reviews the book value of deferred income-tax assets. If it is unlikely to obtain

sufficient taxable income to offset the benefit of the deferred income-tax assets the book value of the deferred income-

tax assets will be written down. On the balance sheet date the Group re-evaluates unrecognized deferred income tax

assets and deferred income tax assets are recognized to the extent that it is likely to obtain sufficient taxable income for

all or part of the deferred income tax assets to be reversed.Deferred income tax assets and deferred income tax liabilities meeting the following conditions simultaneously will be

presented by net amount after offset: when the Company has the statutory right to balance current income tax assets

and current income tax liabilities with net amounts and deferred income tax assets and deferred income tax liabilities are

related to the income tax which are imposed on the same taxpayer by the same tax collection authority or on different

taxpayers but in each important future period in connection with the reversal of deferred income tax assets and

liabilities the involved taxpayer intends to settle the current income tax assets and liabilities on a net amount basis or

obtain assets at the time of discharging liabilities.Section X Financial Report

38. Lease

√ Applicable Not applicable

On the beginning date of the contract the Group assesses whether the contract is a lease or contains a lease if one

party transfers the right to control the use of one or more identified assets for a certain period of time in exchange for

consideration such contract is or contains a lease.Judgment basis and accounting treatment method for simplified treatment of short-term leases and low-value asset

leases as a lessee

√ Applicable Not applicable

As a lessee

Except for short-term leases and low-value asset leases the Group recognizes right-of-use assets and lease liabilities for

leases.At the commencement date of the lease term the Group recognizes its right to use the leased asset over the lease term as

a right-of-use asset which is initially measured at cost. The right-of-use assets include: the initial measurement amount of

the lease liability the lease payments made on or before the commencement date of the lease term lessing the amount

related to the lease incentive already taken; initial direct costs incurred by the lessee; the costs expected to be incurred

by the lessee to disassemble and remove the leased asset restore the site where the leased asset is located or restore

the leased asset to the condition agreed in the lease terms. If the Group remeasures the lease liability due to changes in

lease payments the book value of the right-of-use asset is adjusted accordingly. The Group subsequently depreciates

right-of-use assets under straight-line method. If it can be reasonably certain that the ownership of the leased asset will

be obtained at the expiration of the lease term the leased asset will be depreciated over the remaining useful life. If it

is impossible to reasonably certain that the ownership of the leased asset will be obtained at the expiration of the lease

term the leased asset will be depreciated over the shorter of the lease term and the remaining useful life.At the commencement date of the lease term the Group recognizes the present value of the outstanding lease payments

as a lease liability except for short-term leases and low-value asset lease. Lease payments include fixed payments and

substantially fixed payments net of lease incentives variable lease payments that depend on an index or rate amounts

expected to be payable based on the residual value of guarantee and also include the exercise price of the purchase

option or amounts to be paid upon exercise of a lease termination option if the Group is reasonably certain that the

option will be exercised or the lease term reflects that the Group will exercise the lease termination option. The Group

calculates the interest expenses on lease liabilities at a fixed periodic rate for each period of the lease term and recognizes

it in current profit or loss unless otherwise provided for in the cost of the relevant assets. When there is a change in

the substantial fixed payment a change in the estimated payable amount of the guaranteed residual value a change

in the index or ratio used to determine the lease payment or a change in the evaluation result or actual exercise of the

purchase option renewal option or termination option the Group remeasures the lease liability at the present value of

the changed lease payment.The Group recognizes the lease with a lease term of no more than 12 months from the commencement date and

excluding the purchase option as a short-term lease; a lease with a low value when a single leased asset is a new asset

is recognized as a low-value asset lease. The Group chooses not to recognize right-of-use assets and lease liabilities for

short-term leases and low-value asset leases. During the lease term the relevant asset costs or current profits or losses are

recognized on a straight-line basis for each period.Lease classification standards and accounting treatment method as a lessor

√ Applicable Not applicable

As a lessor

A lease is classified as a finance lease whenever the terms of the lease transfer substantially all the risks and rewards of

asset ownership to the lessee on the commencement date. All leases other than financial leases are classified as operating

leases.ANNUAL REPORT 2024

Rental income from the operating lease in each stage during the lease term should be recognized as the current profit

or loss by the straight-line method and the variable lease payments not included in the lease receipts are recognized in

profit or loss when they are actually incurred. Initial direct costs are capitalized and amortized over the lease term on the

same basis as the recognition of rental income and are included in current profit or loss.

39. Other accounting policies and accounting estimates

√ Applicable Not applicable

Work safety expenses

The safety production expenses withdrawn as specified shall be included in the costs of relevant products or the current

profits and losses and meanwhile included in the special reserve. When used they shall be treated differently depending

on whether they constitute fixed assets: if they are expenditures special reserve will be reduced directly; if they constitute

fixed assets the incurred expenditures are accumulated and the fixed assets are recognized when they reach the

predetermined usable state while the equivalent amount of special reserve is reduced and the equivalent amount of

accumulated depreciation is recognized.Fair value measurement

On the balance sheet date the Group will measure the equity instrument investment with the fair value. Fair value is a

receivable price for selling an asset or a demanding price for transferring a liability for participants in the market in the

orderly transactions during the measuring period.For assets and liabilities measured or disclosed at fair value in the financial statements their fair value levels shall be

determined according to the input value of the lowest level that is significant to the overall measurement of fair value.Level 1 input values are the unadjusted quotation for the same assets or liabilities that can be obtained in an active

market on the measurement date. Level 2 input values are the observable input values of the relevant assets or liabilities

either directly or indirectly other than Level 1 input value. Level 3 input values are the unobservable input values of the

relevant assets or liabilities.On each balance sheet date the Group reevaluates the assets and liabilities continuously measured at fair value and

recognized in the financial statements in order to determine whether there is a conversion among the levels of fair value

measurement.Asset securitization

The Group securitizes some of receivables and contract assets (“Trust Assets”) and entrusts the assets to a structured

entity who will issue senior asset-backed securities (“ABS”) to investors. After payment of trust taxes and related expenses

the Trust Assets shall be firstly used to repay the principal and interest of the senior ABS and the remaining part after full

repayment of such principal and interest shall be used as the income of the junior ABS and belong to the holders of the

junior ABS.For the securitization of financial assets the Group first analyzes whether the structured entities should be consolidated

according to the subordinated shares held the performance-based compensation enjoyed and the powers held by

it. If the Group reserves the contractual right to receive the cash flows from the financial assets but has the contractual

obligation to pay such cash flows to one or more ultimate payees the Group determines the relevant accounting

treatment based on the degree of asset risks and rewards transferred to other entities as described in Note V only when all

three of the following conditions are met: the Group is obligated to pay the equivalent cash flows to the ultimate payee

only when it receives such cash flows from the financial asset; the transfer agreement prohibits the Group from selling or

mortgaging the financial asset but the Group can use it as a guarantee for its obligation to pay cash flows to the ultimate

payee; and the Group is obligated to transfer all cash flows received on behalf of the ultimate payee to the ultimate payee

without significant delay. Otherwise the Group will continue to recognize the transferred financial assets.Significant accounting judgment and estimate

Preparation of the financial statements requires the management to make judgment estimation and hypothesis that

will have an impact on the presentation amounts and disclosure of the incomes expenses assets and liabilities and the

disclosure of contingent liabilities on the balance sheet date. The result incurred due to uncertainty of these hypothesesSection X Financial Report

and estimates may cause significant adjustment of book values of those assets or liabilities influenced in the future.Judgment

In the application of the Group’s accounting policies the management has made the following judgments that have a

material impact on the amounts recognized in the financial statements:

Determination of the performance progress of construction contracts (only applicable to transfer of control over a period

of time)

For construction projects port machinery and heavy equipment construction contracts the Group determines the

performance progress according to the proportion of the cumulative actual construction cost to the estimated total

cost while the cumulative actual cost includes the direct cost and indirect cost in the process of transferring goods to

customers; for steel structure and related construction contracts the Group determines the performance progress based

on the proportion of the cumulative actual output tonnage to the estimated total tonnage. The Group believes that the

construction contract price with customers is determined on the basis of construction cost or output tonnage and the

proportion of the actual construction cost or comprehensive tonnage to the estimated total cost can or estimated total

tonnage can truly reflect the performance progress of construction services. In view of the long duration of construction

contracts which may span several accounting periods the Group will recheck and revise the budget with the progress of

the construction contracts and adjust the amount of revenue recognized accordingly.The following are other key sources of the uncertainty of the key assumptions and estimates in the future on the balance

sheet date which may lead to major adjustments in the book value of the assets and liabilities of next fiscal year.Impairment of financial instruments and contract assets

The Group adopts the expected credit loss model to assess the impairment of financial instruments and contract assets.The application of the expected credit loss model requires significant judgments and estimates. It must consider all

reasonable and evidence-based information including forward-looking information. In making such judgments and

estimates the Group infers expected changes in debtors' credit risk based on historical repayment data combined

with economic policies macroeconomic indicators industry risks and other factors. Different estimates may affect the

provision for impairment and the amount of impairment that has been provided may be not equal to the actual amount

of future impairment losses.Inventory depreciation reserves

The management shall estimate the net realizable value of inventories in time so as to estimate the provision for

depreciation of inventories. If any event or circumstance changes it is necessary to use the estimate to make the provision

for depreciation of inventories if the inventory is not likely to realize the relevant value. If the expected amount is different

from the original estimate the relevant difference will affect the book value of the inventories and the impairment loss

during the estimated change.Impairment of goodwill

The Group tests whether the goodwill is impaired at least annually. This requires an estimate of the present value of the

future cash flows of the asset group or combination of asset groups to which goodwill is allocated. When estimating

the present value of future cash flows the Group needs to estimate the cash flow generated by future asset groups or

combination of asset groups and select the appropriate discount rate to determine the present value of future cash flows.See Note VII (27) for details.Fair value of unlisted equity investments

The Group uses the market approach to determine the fair value of unlisted equity investments. This requires the Group

to identify comparable listed companies select market multipliers estimate liquidity discounts etc. and is therefore

subject to uncertainty.Impairment of non-current assets other than financial assets (other than goodwill)

On the balance sheet date the Group judges whether there are any signs of possible impairment of non-current assets

other than financial assets. Non-current assets other than financial assets are tested for impairment when there is an

indication showing that their book amounts are irrecoverable. When the book value of an asset or asset group is higherANNUAL REPORT 2024

than the recoverable amount that is the higher of the net amount from fair value less the disposal expense and the

present value of the estimated future cash flow it indicates that the impairment occurred. The net amount after the fair

value minus the disposal expenses is determined by reference to the sales agreement price of similar assets in the fair

trade or the observable market price minus the incremental cost directly attributable to the disposal of the asset. When

estimating the present value of future cash flows management must estimate the expected future cash flows of the asset

or asset group and select an appropriate discount rate to determine the present value of future cash flows.

40. Changes in significant accounting policies and accounting estimates

(1) Changes in significant accounting policies

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Significantly affected statement Influenced

Content and cause of changes in accounting policies

item name amount

Presentation of financial statements

In accordance with the Compilation of Application Guidelines for the Accounting Standards for

Business Enterprises 2024 the Group has changed the derivative financial instruments originally Financial asset held for trading and

0

listed under “Financial Assets Held for Trading” or “Financial Liabilities Held for Trading” to be derivative financial instruments

separately presented and has retrospectively adjusted the comparative data of the financial

statements accordingly.Disclosure on supplier finance arrangements

A supplementary disclosure of supplier finance arrangements is necessary as stated in the

Accounting Standards Interpretation No. 17 published in 2023 to assist the users of the financial

None 0

statements in assessing the impact on liabilities cash flows and liquidity risk exposure. The Group

has implemented such requirements since January 01 2024 and there is no need to disclose

relevant information in the comparable period in accordance with the provisions on connection.Other description:

None

(2) Changes in accounting estimates

Applicable √ Not applicable

(3) First-time implementation of new accounting standards or interpretations of standards from 2024 onwards involves

adjustments to the financial statements at the beginning of the year of first-time implementation

Applicable √ Not applicable

41. Others

Applicable √ Not applicable

VI Taxes

1. Main tax categories and tax rates

Main tax categories and tax rates

√ Applicable Not applicableSection X Financial Report

Category of tax Basis of tax computation Tax rate

VAT is applicable to the sales of the Group’s products. The taxable income from the sales of

the products in domestic market is subject to the output tax as per 13%; the products for

export adopt the method of “tax exemption tax deduction and tax reimbursement” and the

applicable tax rate is 13%. The Group’s income from the marine transport is applicable to

The difference between the output VAT and the output tax is calculated as per 9%; the income from leasing of the equipment

VAT tax calculated by applicable tax is applicable to VAT and the output tax is calculated as per 13% of the taxable income; the rate after deducting the deductible income from the sales of the equipment is applicable to the simple collection measures

input tax of VAT and the tax rate is subject to the reduced tax rate of 2%; the Group’s income from

the leasing of the housing is applicable to the simple collection measures of VAT and the

tax rate is 5%; the item “B-T” is applicable to VAT and the output tax on the taxable income

is collected at 9%. The above output tax shall calculate and pay VAT after deducting the

amount of input tax deductible except for the applicable VAT’s simple collection method.Urban maintenance The amount of value-added tax

and construction actually paid and exempted upon Calculated and paid according to 7% and 3% of the turnover tax actually paid and exempted

tax and education the official approval by the State upon the official approval by the State Administration of Taxation.surcharge Administration of Taxation

The enterprise income tax is calculated and paid in accordance with the Enterprise Income

Tax Law of People’s Republic of China (hereinafter referred to as the “Income Tax Law”).In accordance with the relevant provisions of the Measures for the Administration of

Enterprise income tax Taxable income the Certification of High-tech Enterprises (GKFH [2016] No. 32) and the Guidelines for the Administration of the Certification of High-Tech Enterprises (GKFH [2016] No. 195)

the Company was awarded a new High-tech Enterprise Certificate (Certificate Number:

GR202331007094) in December 2023 after reexamination with the valid term of 3 years. The

Company actually applied the enterprise income tax rate of 15% this year (2023: 15%).Where there are taxpayers with different enterprise income tax rates the disclosure shall be stated

√ Applicable Not applicable

Name of taxpayer Income tax rate (%)

The Company 15%

Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. 15%

Shanghai Zhenhua Port Machinery (Hong Kong) Co. Ltd. 16.5%

Shanghai Zhenhua Shipping Co. Ltd. 25%

Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. 15%

ZPMC Transmission Machinery (Nantong) Co. Ltd. 15%

ZPMC Electric Co. Ltd. 15%

Shanghai Zhenhua Ocean Engineering Service Co. Ltd. 25%

ZPMC Machinery Equipment Services Co. Ltd. 25%

Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co. Ltd. 25%

Shanghai Port Machinery Heavy Industry Co. Ltd. 25%

ZPMC Zhangjiagang Port Machinery Co. Ltd. 25%

ZPMC Qidong Marine Engineering Co. Ltd. 25%

Jiahua Shipping Co. Ltd. 16.5%

Zhenhua Pufeng Wind Energy (HongKong) Co. Ltd. 16.5%

Nanjing Ninggao New Channel Construction Co. Ltd. 25%

CCCC Investment & Development Qidong Co. Ltd. 25%

CCCC Liyang Urban Investment and Construction Co. Ltd. 25%

CCCC (Huaian) Construction Development Co. Ltd. 25%

CCCC Zhenjiang Investment Construction Management Development Co. Ltd. 25%

CCCC Rudong Construction Development Co. Ltd. 25%

ZPMC Netherlands Co?peratie U.A. 25.8%

ZPMC Netherlands B.V. 25.8%

Verspannen B.V. 25.8%

ZPMC Espana S.L. 25%

ZPMC Italia S.r.l. 24%

ZPMC GmbH Hamburg 32.25%

ZPMC Lanka Company (Private) Limited 30%

ZPMC North America Inc. 29%ANNUAL REPORT 2024

Name of taxpayer Income tax rate (%)

ZPMC Korea Co. Ltd. 20%

ZPMC Engineering Africa (Pty) Ltd. 28%

ZPMC Engineering (India) Private Limited 25.17%

ZPMC Southeast Asia Holding Pte. Ltd. 17%

ZPMC Engineering (Malaysia) Sdn. Bhd. 24%

ZPMC Australia Company (Pty) Ltd. 30%

ZPMC Brazil Servi?o Portuários LTD. 25%

ZPMC Limited Liability Company 20%

ZPMC NA East Coast lnc. 33%

ZPMC Middle East FZE 0%

ZPMC UK LD 19%

Greenland Heavylift (Hong Kong) Limited 16.5%

GPO Grace Limited 0%

GPO Amethyst Limited 0%

GPO Sapphire Limited 0%

GPO Emerald Limited 0%

GPO Heavylift Limited 0%

GPO Heavylift AS 0%

GPO Heavylift Pte Ltd 17%

ZPMC Latin America Holding Corporation 5%

Terminexus Co. Ltd. 16.5%

CCCC Yongjia Construction Development Co. Ltd. 25%

CCCC Zhenhua Lvjian Technology (Ningbo) Co. Ltd. 25%

ZPMC Hotel Co. Ltd. 25%

Xiong’an Zhenhua Co. Ltd. 25%

ZPMC Fuzhou Offshore Construction Co. Ltd. 25%

CCCC (Dongming) Investment and Construction Co. Ltd. 25%

CCCC Zhenhua Intelligent Parking (Hengyang) Co. Ltd. 25%

2. Tax preferences

√ Applicable Not applicable

Note 1: Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. obtained the “Hi-tech Enterprise Certificate” (No.GR202231000204) in December 2022 with the valid term of 3 years. Nantong Zhenhua Heavy Equipment Manufacturing

Co. Ltd. obtained the “Hi-tech Enterprise Certificate” (No.: GR202132001798) in November 2021 and the renewed “Hi-tech Enterprise Certificate” (No.: GR202432005214) with the valid term of 3 years. Shanghai Zhenhua Heavy Industries

Group (Nantong) Transmission Machinery Co. Ltd. obtained the “Hi-tech Enterprise Certificate” (No. GR202232002981) in

2022 with the valid term of 3 years. Shanghai Zhenhua Heavy Industries Electric Co. Ltd. obtained the “Hi-tech EnterpriseCertificate” (No.: GR202331003809) in December 2023 with the valid term of 3 years. In accordance with relevant

provisions in Article 28 of the Income Tax Law the actually applicable enterprise income tax rate for these companies in

this year was 15% (2023: 15%).

3. Others

Applicable √ Not applicableSection X Financial Report

VII. Notes to the main items of the consolidated financial statements

1. Monetary funds

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Cash on hand 266397 494809

Bank deposits 5822909551 5031675096

Other monetary funds 43651264 72908531

Deposits with finance companies

Total 5866827212 5105078436

Including: total amount of overseas deposits 701158127 1039089864

2. Held-for-trading financial assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Reasons and basis for

Item December 31 2024 December 31 2023

designation

Financial assets measured at fair value through the current profit or loss 534200582 712156397 /

Including:

Investment in listed company stocks 534200582 712156397 /

Financial assets designated to be measured at fair value through the

current profit or loss

Total 534200582 712156397 /

Other description:

√ Applicable Not applicable

As at December 31 2024 the listed company share investments held by the Group include 4.86% equity of Jiangxi Huawu

Brake Co. Ltd. and 1.16% equity of CRSC.

3. Derivative financial assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Derivative financial instruments 8438278 8438278

Total 8438278 8438278

Other description:

As at December 31 2024 the derivative financial assets – equity options held by the Group refers to the fair value of the

right obtained at the time of acquiring Greenland Heavylift (Hong Kong) Limited to purchase 1% of its equity of at the

price of USD 1.ANNUAL REPORT 2024

4. Notes receivable

(1) Presentation of notes receivable by category

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Banker's acceptance bills

Commercial acceptance bills 50000000 14122031

Total 50000000 14122031

(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) 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

Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Basis for division of each stage and proportion of provision for bad debt

None

Explanation of significant changes in the book balance of notes receivable with changes in provisions for losses in the

current period:

Applicable √ Not applicable

(5) Provision for bad debts

Applicable √ Not applicable

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

(6) Notes receivable actually written off in the current period

Applicable √ Not applicable

Including important notes for write-off of notes receivable:

Applicable √ Not applicable

Explanation of write-off of notes receivable:

Applicable √ Not applicable

Other description:

Applicable √ Not applicableSection X Financial Report

5. Accounts receivable

(1) Disclosure by aging

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Aging Ending book balance Begining book balance

Within 1 year

Including: subitem within 1 year

Within 1 year 5329641004 4922793284

Sub-total of items within 1 year 5329641004 4922793284

1-2 years 1303771299 1497051338

2-3 years 755148515 625448724

Over 3 years

3-4 years 364667805 866155324

4-5 years 748692080 652981128

Over 5 years 1881684558 1274119208

Total 10383605261 9838549006

(2) Disclosure by bad debt calculation method

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Book balance Provision for bad debts Book balance Provision for bad debts

Category Proportion

Proportion Book value

Proportion

Proportion Book value

Amount Amount of provision Amount Amount of provision

(%)(%)

(%)(%)

Provision for bad

debts accrued on 900605325 9 829355994 92 71249331 908640230 9 837390899 92 71249331

an individual basis

Including:

Provision for bad

94829999369121884558062372945441308929908776911734860005197195048771

debts by portfolio

Including:

Total 10383605261 / 3017811800 / 7365793461 9838549006 / 2572250904 / 7266298102

Individual provision for bad debts:

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024

Name

Book balance Provision for bad debts Proportion of provision (%) Reason for provision

Accounts receivable 1 474995540 403746209 85 Counterparty financial shortage

Total 474995540 403746209 85 /

Description of individual provision for bad debts:

√ Applicable Not applicable

As of December 31 2023 the accounts receivable with provision for bad debts accrued on an individual basis are as

follows:

December 31 2024

Name

Book balance Provision for bad debts Proportion of provision (%) Reason for provision

Accounts receivable 1 474995540 403746209 85 Counterparty financial shortage

Total 474995540 403746209 85 /ANNUAL REPORT 2024

Provision for bad debts by portfolio:

Applicable √ Not applicable

Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Explanation of significant changes in the book balance of accounts receivable with changes in provisions for losses in the

current period:

Applicable √ Not applicable

(3) Provision for bad debts

Applicable √ Not applicable

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

(4) Accounts receivable actually written off in the current period

Applicable √ Not applicable

Write-off of important accounts receivable

Applicable √ Not applicable

Explanation of write-off of accounts receivable:

Applicable √ Not applicable

(5). Top 5 accounts receivable and contract assets in terms of ending balance presented by debtor

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:

20242023

Carrying amount of Expected credit Carrying amount of Expected credit

Proportion of Proportion of

estimated credit losses loss for the entire estimated credit losses loss for the entire

provision (%) provision (%)

arising from default duration arising from default duration

Within 1 year 5329749390 5 286132100 4918235383 4 180647988

1-2 years 1299177300 17 226038205 1497010838 12 180463562

2-3 years 755108015 24 179470493 625448724 30 190373412

3-4 years 354323959 56 199934817 756394186 53 400921875

4-5 years 649274788 66 427222231 214716181 50 107993104

Over 5 years 1095366484 79 869657960 918103464 73 674460064

Total 9482999936 2188455806 8929908776 1734860005

As at December 31 2024 the top five accounts receivable and contract assets are as follows:

Provision for bad debts of

Proportion in total year-

Accounts Accounts receivable and accounts receivable and

Contract assets end balance of accounts

receivable Closing contract assets Closing provision for impairment of

Closing balance receivable and contract

balance balance contract assets

assets (%)

Closing balance

Client 1 128713924 560456791 689170715 5 164962449

Client 2 475995540 475995540 3 403746209

Client 3 195687694 197373389 393061083 3

Client 4 208334966 179817826 388152792 3

Client 5 345288819 37512220 382801039 3 36483395

Total 1354020943 975160226 2329181169 17 605192053Section X Financial Report

6. Contract assets

(1) Particulars about contract assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Item Provision for Provision for

Book balance Book value Book balance Book value

bad debts bad debts

Warranty balance recognized at the time

14337876851445256031289262082698290178103987647594302531

of control transfer (Remark 1)

Outstanding payments for construction

2750387249142002115260838513422933748521080442492185330603

completed (Remark 2)

Total 4184174934 286527718 3897647216 2991665030 212031896 2779633134

Remark 1: When the Group sells equipment to customers and provides relevant installation services it constitutes a single performance obligation. When the

Group recognizes revenue at the time of fulfilling its performance obligations the Company’s unconditional (i.e. only depending on the passage of time)

right to collect consideration from customers shall be presented as receivables. The non-invoiced contract warranty balance is the right to conditionally

collect the consideration from the customer. Therefore the Company recognizes the non-invoiced contract receivables as contract assets and the contract

assets will form unconditional collection right after the expiration of the warranty and will be transferred to the receivables.Remark 2: The Group provides customers with manufacturing of large port machinery and equipment infrastructure construction services and steel

structure and heavy equipment product manufacturing and recognizes revenue within a period of time to form contract assets. The contract assets will

form unconditional collection right at the time of project settlement and are transferred in receivables. The customers shall settle accounts with the Group

on the performance progress of the delivery of large port machinery and equipment engineering construction services and steel structure and heavy

equipment products under contract provisions and pay the contract price according to the credit period specified in the contract after settlement. The part

of the income amount recognized by the Group according to the performance progress exceeding the settled price is recognized as contract assets and the

part of the settled price exceeding the income amount recognized by the Group according to the performance progress is recognized as contract liabilities.As at December 31 2024 the contract assets were RMB 203952618 (as at December 31 2023: RMB 146326607) which

had been pledged to the bank as the guarantee for the long-term borrowings of RMB 3031253334 (as at December 31

2023: Long-term borrowings of RMB 3142068341).

(2) Amount of and reason for significant changes in book value during the reporting period

Applicable √ Not applicable

(3) Disclosure by bad debt calculation method

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Book balance Provision for bad debts Book balance Provision for bad debts

Category Book Proportion

Proportion Proportion of Proportion Book value

Amount Amount value Amount Amount of provision

(%) provision (%) (%)

(%)

Provision for

bad debts

accrued on an

individual basis

Including:

Provision for

bad debts by 4184174934 100 286527718 7 3897647216 2991665030 100 212031896 7 2779633134

portfolio

Including:

Total 4184174934 / 286527718 / 3897647216 2991665030 / 212031896 / 2779633134

Individual provision for bad debts:

Applicable √ Not applicable

Description of individual provision for bad debts:

Applicable √ Not applicableANNUAL REPORT 2024

Provision for bad debts by portfolio:

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024

Name

Contract assets Provision for bad debts Proportion of provision (%)

Within 1 year 3231995100 4 124974542

1-2 years 732365231 16 116289660

2- 3 years 202595802 17 34330929

Over 3 years 17218801 63 10932587

Total 4184174934 100 286527718

Explanation of provision for bad debts accrued by portfolio

Applicable √ Not applicable

Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Explanation of significant changes in the book balance of contract assets with changes in provisions for losses in the

current period:

Applicable √ Not applicable

(4) Provision for bad debts of contract assets of the current period

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase/decrease in 2024

December 31 Write-off/

Item Provision in Recovery or

December 31

2023 charge-off in Other

Reason

the current reversal in the 2024

the current changes

period current period

period

Warranty balance recognized at the

103987647110702096-70164140144525603

time of control transfer

O u t s t a n d i n g p a y m e n t s f o r

10804424938350108-4392242142002115

construction completed

Total 212031896 149052204 -70164140 -4392242 286527718 /

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

(5). Contract assets actually written off in the current period

Applicable √ Not applicable

Significant write-off of contract assets

Applicable √ Not applicable

Note to contract asset write-off:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

7. Receivables financing

(1). Receivables financing presented by category

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Banker's acceptance bills 106533734 485743897

Digital debt voucher of accounts receivable 543727150 479825225

Total 650260884 965569122

(2) Receivables financing pledged by the Company at the end of the period

Applicable √ Not applicable

(3) Receivables financing that has been endorsed or discounted by the Company and is not due at the balance sheet date

at the end of the period.√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Derecognition amount at the end of period Amount not derecognized at the end of period

Banker's acceptance bills 758475260

Digital debt voucher of accounts receivable 7417399

Total 765892659

(4) Disclosure by bad debt calculation method

Applicable √ Not applicable

Individual provision for bad debts:

Applicable √ Not applicable

Description of individual provision for bad debts:

Applicable √ Not applicable

Provision for bad debts by portfolio:

Applicable √ Not applicable

Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Explanation of significant changes in the book balance of receivables financing with changes in provisions for losses in

the current period:

Applicable √ Not applicable

(5) Provision for bad debts

Applicable √ Not applicable

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

(6) Receivables financing actually written off in the current period

Applicable √ Not applicable

Including important notes for write-off of receivables financing

Applicable √ Not applicable

Note to write-off:

Applicable √ Not applicable

(7) Increase or decrease and changes in fair value of receivables financing in the current period:

Applicable √ Not applicableANNUAL REPORT 2024

(8) Other description

Applicable √ Not applicable

8. Advances to suppliers

(1) Presentation of advances to suppliers by account age

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Aging

Amount Proportion (%) Amount Proportion (%)

Within 1 year 841302248 82 1209014804 92

1-2 years 129466008 12 43155573 3

2-3 years 10069526 1 24603752 2

Over 3 years 50780077 5 37059934 3

Total 1031617859 100 1313834063 100

Explanation of the reasons why the advances to suppliers with the aging over one year and a significant amount is not

settled in time:

As at December 31 2024 the advances to suppliers of the Company with the aging over one year was RMB 190315611 (as

at December 31 2023: RMB 104819259) mainly the advances to suppliers for the procurement of imported parts which

has not been yet settled because the purchased imported parts have not yet received.

(2) Top 5 advances to suppliers in terms of ending balance presented by prepaid object

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Name December 31 2024 Proportion in total ending balance of prepayment(%)

Total advances to suppliers of top 5 balances 332863965 32

Total 332863965 32

Other description:

Applicable √ Not applicable

9. Other receivables

Item presentation

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Interest receivable

Dividends receivable

Other receivables 780170637 1245727441

Total 780170637 1245727441

Other description:

Applicable √ Not applicable

Interest receivable

(1) Classification of interest receivable

Applicable √ Not applicableSection X Financial Report

(2) Significant overdue interest

Applicable √ Not applicable

(3) Disclosure by bad debt calculation method

Applicable √ Not applicable

Individual provision for bad debts:

Applicable √ Not applicable

Description of individual provision for bad debts:

Applicable √ Not applicable

Provision for bad debts by portfolio:

Applicable √ Not applicable

(4) Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Explanation of significant changes in the book balance of interests receivable with changes in provisions for losses in the

current period:

Applicable √ Not applicable

(5) Provision for bad debts

Applicable √ Not applicable

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

Other description:

None

(6) Interests receivable actually written off in the current period

Applicable √ Not applicable

Including important notes for write-off of interests receivable

Applicable √ Not applicable

Note to write-off:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Dividends receivable

(1) Dividends receivable

Applicable √ Not applicable

(2) Significant dividends receivable aging over 1 year

Applicable √ Not applicable

(3) Disclosure by bad debt calculation method

Applicable √ Not applicable

Individual provision for bad debts:

Applicable √ Not applicable

Description of individual provision for bad debts:

Applicable √ Not applicableANNUAL REPORT 2024

Provision for bad debts by portfolio:

Applicable √ Not applicable

(4) Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Basis for division of each stage and proportion of provision for bad debt

None

Explanation of significant changes in the book balance of dividends receivable with loss provision changes in the current

period:

Applicable √ Not applicable

(5) Provision for bad debts

Applicable √ Not applicable

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

Other description:

None

(6) Dividends receivable actually written off in the current period

Applicable √ Not applicable

Including important notes for write-off of dividends receivables

Applicable √ Not applicable

Note to write-off:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Other receivables

(1) Disclosure by aging

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Aging Ending book balance Begining book balance

Within 1 year

Including: subitem within 1 year

Within 1 year 508829137 1041458135

Sub-total of items within 1 year 508829137 1041458135

1-2 years 241190490 185596565

2-3 years 50907248 67413075

Over 3 years

3-4 years 6025630 5824513

4-5 years 2506517 1837702

Over 5 years 228793347 228825263

Total 1038252369 1530955253

(2) Classification by nature of funds

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Nature of funds Ending book balance Begining book balance

Unpaid taxes receivable 466217590 794770088

Secured repayment 164124678 164124678

Receivables from third parties 93031724 157909657

Bid and performance bonds 64665781 123271714

Customs bonds 38282346 47556497

Export rebates 14877279 12141232

Money on call of on-site product service 14527162 16569231

Lease payment receivable 11849430 48652496

Staff loan receivable 9565349 12300811

Others 161111030 153658849

Total 1038252369 1530955253

(3) Provision for bad debts

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Stage I Stage II Stage III

Provision for bad debts Expected credit loss for Expected credit loss for Expected credit losses Total

the entire duration (no the entire duration (credit

over the next 12 months

credit impairment) impairment occurred)

Balance as of January 1 2024 54463521 230764291 285227812

Balance on January 1 2024 is in the

period

--Transferred to Stage II

--Transferred to Stage III

--Reversal to Stage II

--Reversal to Stage I

Provision in the current period 11948740 11948740

Reversal in the current period -1275803 -37819017 -39094820

Write-off in the current period

Charge-off in the current period

Other changes

Balance as of December 31 2024 65136458 192945274 258081732

Description of significant changes in book balance of other receivables with changes in loss provision in the current

period:

Applicable √ Not applicable

The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial

instruments has increased significantly:

Applicable √ Not applicable

(4) Provision for bad debts

Applicable √ Not applicable

Including the reversed or recovered provision for bad debts with significant amount in the current period:

Applicable √ Not applicable

(5) Other receivables actually written off in the current period

Applicable √ Not applicableANNUAL REPORT 2024

Including important notes for write-off of other receivables:

Applicable √ Not applicable

Explanation of write-off of other receivables:

Applicable √ Not applicable

(6) Top 5 other receivables in terms of ending balance presented by debtor

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Proportion in the total balance Provision for bad debts

Name December 31 2024 Nature Aging

of other receivables (%) December 31 2024

Other receivables 1 164124678 16 Secured repayment Over 5 years 164124678

Other receivables 2 89122924 9 Unpaid taxes receivable Within 1 year -

Other receivables 3 65227269 6 Unpaid taxes receivable Over 5 years 65227269

Other receivables 4 42401335 4 Land disposal 1-2 years -

Other receivables 5 38282346 4 Customs deposits Within 1 year -

Total 399158552 39 / / 229351947

(7) Presented in other receivables due to centralized fund management

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

10. Inventories

(1) Classification

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Provision for Provision for

inventory inventory

Item depreciation/ depreciation/

Book balance provision for Book value Book balance provision for Book value

impairment of impairment of

contract performance contract performance

cost cost

Raw materials 3551885045 48398643 3503486402 3675673907 41709552 3633964355

Goods in process 20903827913 348283907 20555544006 21287200068 827924453 20459275615

Stock commodities 43070855 43070855 26832901 26832901

Revolving materials

Consumptive biological

assets

Contract performance

452483403452483403161329305161329305

cost

Total 24951267216 396682550 24554584666 25151036181 869634005 24281402176

(2) Data resources recognized as inventory

Applicable √ Not applicable

(3) Provision for inventory depreciation and provision for impairment of contract performance cost

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Increase in the current period Decrease in the current period

Item December 31 2023 December 31 2024

Provision Others Reversal or write- off Others

Raw materials 41709552 7070088 -380997 48398643

Goods in process 827924453 96439315 -576079861 348283907

Stock commodities

Revolving materials

Consumptive biological assets

Contract performance cost

Total 869634005 103509403 -576460858 396682550

Reasons for reversing or writing off the provision for inventory depreciation in the current period

Applicable √ Not applicable

Accrual of provision for inventory depreciation by portfolio

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Name of

portfolio Depreciation Ratio of provision for Depreciation Ratio of provision for Book balance Book balance

provision inventory depreciation (%) provision inventory depreciation (%)

Within 1 year 3047281403 3201984582

1-2 years 249237321 250956516

2-3 years 57420060 2871003 5 50082304 2477163 5

Over 3 years 197946261 45527640 23 172650505 39232389 23

Total 3551885045 48398643 3675673907 41709552

Standards of accrual of provision for inventory depreciation by portfolio

Applicable √ Not applicable

(4) The amount of capitalized borrowing costs c included in ending balance of inventories and its calculation standards

and basis

Applicable √ Not applicable

(5) Description of the current amortization amount of contract performance cost

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

Information about inventory depreciation reserves:

Specific basis for determination of net realizable values Reasons for reversing or writing off the provision for inventory depreciation in the year

Raw materials and

outsourced par ts Difference between the net realizable value of raw materials and outsourced parts and components and their book value resulting from product price fall Value recovery consuming or external salesand components

Goods in process Difference between the net realizable value and the book value of goods in Value recovery transferred for self-use or external process sales

Total amount of possible penalties for failure to fulfill the obligations as contracted:

20242023

Valid letter of guarantee signed by the bank 17995858329 16938583230

Letter of guarantee not signed by the bank 8171573376 7058112002

Total 26167431705 23996695232ANNUAL REPORT 2024

11. Assets held for sale

Applicable √ Not applicable

12. Non-current assets due within one year

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Debt investment due within one year

Other debt investments due within one year

Long-term receivables due within one year 1346060900 1341408631

Total 1346060900 1341408631

Debt investment due within one year

Applicable √ Not applicable

Other debt investments due within one year

Applicable √ Not applicable

13. Other current assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Contract acquisition cost

Return cost receivable

Input tax to be deducted 853758031 459437837

Prepaid income tax 4396501 17288544

Total 858154532 476726381

14. Debt investment

(1) Particulars about debt investment

Applicable √ Not applicable

Changes in provision for impairment of debt investments in the current period

Applicable √ Not applicable

(2) Important debt investment at the end of the period

Applicable √ Not applicable

(3) Provision for impairment

Applicable √ Not applicable

Explanation of significant changes in the book balance of debt investments with changes in provisions for losses in the

current period:

Applicable √ Not applicable

The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of

financial instruments has increased significantly

Applicable √ Not applicable

(4) Actual write-off of debt investments in the current period

Applicable √ Not applicableSection X Financial Report

Including important notes for write-off of debt investments

Applicable √ Not applicable

Explanation of write-off of debt investments:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

15. Other debt investments

(1) Particulars about other debt investments

Applicable √ Not applicable

Changes in provision for impairment of other debt investments in the current period

Applicable √ Not applicable

(2) Important other debt investments at the end of the period

Applicable √ Not applicable

(3) Provision for impairment

Applicable √ Not applicable

Explanation of significant changes in the book balance of other debt investments with changes in provisions for losses in

the current period:

Applicable √ Not applicable

The amount of provision for impairment in the current period and the basis for assessing whether the credit risk of

financial instruments has increased significantly

Applicable √ Not applicable

(4) Other debt investments actually written off in the current period

Applicable √ Not applicable

Including important notes for write-off of other debt investments

Applicable √ Not applicable

Explanation of write-off of other debt investments:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

16. Long-term receivables

(1) Long-term receivables

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023 Discount

Item rate

Book balance Provision for bad debts Book value Book balance

Provision for

bad debts Book value range

Goods sold on installment 272270359 272270359

Including: Unrealized financing

income -16883031 -16883031

Goods sold on installment

Services provided on installmentANNUAL REPORT 2024

December 31 2024 December 31 2023 Discount

Item

Book balance Provision for Book value Book balance Provision for

rate

bad debts bad debts Book value rangeReceivables from “Building –Transfer” project

- Principal 1780292870 1780292870 2440824581 2440824581

- Interest receivable 374755734 374755734 357766509 357766509

Less: Long-term receivables due

within one year 1346060900 1346060900 1341408631 1341408631

Total 1081258063 1081258063 1457182459 1457182459 /

As at December 31 2024 and December 31 2023 the account receivable from “Building – Transfer” project was the

principal invested in above “Building – Transfer” project by the Group and the amount of interest receivable was the

financing return recognized based on the contract.As at December 31 2024 the long-term receivables were RMB 1140307484 (as at December 31 2023: RMB

1435459418) which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 3031253334

(as at December 31 2023: Long-term borrowings of RMB 3142068341).

(2) Disclosure by bad debt calculation method

Applicable √ Not applicable

Individual provision for bad debts:

Applicable √ Not applicable

Description of individual provision for bad debts:

Applicable √ Not applicable

Provision for bad debts by portfolio:

Applicable √ Not applicable

(3) Provision for bad debts is calculated based on the general model of expected credit loss

Applicable √ Not applicable

Description of significant changes in the book balance of long-term receivables with changes in provisions for losses in

the current period:

Applicable √ Not applicable

The amount of provision for bad debts in the current period and the basis for assessing whether the credit risk of financial

instruments has increased significantly

Applicable √ Not applicable

(4) Provision for bad debts

Applicable √ Not applicable

The recovered or reversed provision for bad debts with significant amount:

Applicable √ Not applicable

(5) Long-term receivable actually written off in the current period

Applicable √ Not applicable

Including important notes for write-off of long-term receivables:

Applicable √ Not applicable

Explanation of write-off of long-term receivables:

Applicable √ Not applicable

Other description:

Applicable √ Not applicableSection X Financial Report

17. Long-term equity investments

(1). Long-term equity investments

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase/decrease in the current period Balance of

Profit or loss Adjustment Cash dividends provision for December 31 December 31

Invested entity

2023 Balance Further Reduced on investments of other Changes in or profit Provision for

impairment as

Others 2024 Balance

investment investment under the equity comprehensive other equity declared to be impairment at December

method income distributed 31 2024

I. Joint ventures

Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 366402293 1493451 367895744

ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 472474 -87156 385318

ZPMC-OTL Marine Contractor Limited)

Zhenhua Marine Energy (HK) Co. Ltd.Cranetech Global Sdn. Bhd. 632180 -632180

Sub-total 367506947 -632180 1406295 368281062

II. Associates

CCCC Financial Leasing Co. Ltd (i) 622040353 54258701 -249900 -14870898 661178256

CCCC Yancheng Construction Development Co. Ltd. 418516242 -15985769 402530473

CCCC Estate Yixing Co. Ltd. 211658118 -8599653 203058465

CCCC South American Regional Company SARL 186098453 -182280905 -2954060 -863488

China communications Construction USA Inc. 61235361 105590 906229 62247180

CCCC Photovoltaic Technology Co. Ltd. 35693476 2158207 37851683

ZPMC Changzhou Coatings Co. Ltd. 23602827 8349179 -7556412 24395594

Suzhou Chuanglian Electric Drive Co. Ltd. 12559432 -12559432 -

CCCC Xiongan Urban Construction Development Co. Ltd. (ii) 7573269 36627 7609896

Shanghai Ocean Engineering Equipment Manufacturing

4695602-4695602

Innovation Center Co. Ltd.ZPMC Southeast Asia Pte. Ltd(iii) 4898300 126394 -5024694

Shanghai Xingyi Construction Technology Co. Ltd. 179242 -179242

CCCC Marine Engineering & Technology Research Center Co.Ltd.Sub-total 1588750675 -199535939 37315974 -207159 -5024694 -22427310 1398871547

Total 1956257622 -200168119 38722269 -207159 -5024694 -22427310 1767152609ANNUAL REPORT 2024

(2). Impairment test of long-term equity investments

Applicable √ Not applicable

Other description:

Joint ventures

(i) On May 5 2014 the subsidiary of the Company and the partner invested to establish Zhenhua Marine Energy (Hong

Kong) Co. Ltd (Zhenhua Marine Energy). The registered capital is USD 5969998. The subsidiary of the Company

contributed USD 3044699 with the shareholding ratio of 51%. Zhenhua Marine Energy focused on the vessel

transportation business. Based on the regulations of the shareholder agreement the important events of such company

shall be agreed by at least 75% shareholders via voting. Hence the Group has no control right but jointly controls

Zhenhua Marine Energy together with the partner.Associated company

(i) In 2024 the Company held 5.82% of equity of CCCC Financial Leasing Co. Ltd. According to the relevant provisions

of the company’s Articles of Association the Company is entitled to appoint one director to the company and can exert

significant influence over it.(ii) On June 23 2020 the Company invested to establish CCCC Xiongan Urban Construction Development Co. Ltd. The

registered capital was RRMB 100000000. The Company contributed RMB 15000000 with the shareholding ratio of 15%.The company was mainly engaged in the engineering construction. According to relevant provisions of the Articles of

Association the Company has the right to appoint one director to CCCC Xiongan Urban Construction Development Co.Ltd and can exert significant influence on the company.(iii) On February 29 2024 the Company’s subsidiary ZPMC Southeast Asia Holding Pte. Ltd. made an additional

investment in ZPMC Southeast Asia Pte. Ltd. by purchasing 40% equity held by the original minority shareholders and

upon procurement ZPMC Southeast Asia Holding Pte. Ltd. held 70% of its equity and obtained control over it thus

incorporating it into the scope of consolidation.Section X Financial Report

18. Other equity instrument investment

(1). Particulars about other equity instrument investment

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase/decrease in the current period

Dividend Accumulated Accumulated Reasons for financial

December Gains included Losses included December income gains included losses included assets designated to

Item 31 2023 in other in other Further Reduced 31 2024 recognized in other in other be measured at fair

Balance comprehensive comprehensive Othersinvestment investment Balance in the current comprehensive comprehensive value through other

income in the income in the period income income comprehensive income

current period current period

Strategic investment long-

Jiangsu Zhangjinggao Bridge Co. Ltd. 16790000 58620001 75410000

term holding

Strategic investment long-

Hunan Fengri Power & Electric Co. Ltd. 29951235 3247965 33199200 13201040

term holding

Nezha Port and Shipping Smart Technology Strategic investment long-

29738925-294001626798909-2940016

(Shanghai) Co. Ltd. term holding

Strategic investment long-

Ningbo Weilong Port Machinery Co. Ltd. 15333176 8875048 24208224 1602665 20912225

term holding

CCCC Highway Bridges National Engineering Strategic investment long-

24986999-7435254-4372726131790194079019

Research Centre Co. Ltd. term holding

Strategic investment long-

Shenyang Weichen Crane Equipment Co. Ltd. 6617654 2440446 9058100 7558099

term holding

CCCC National Engineering Research Center of Strategic investment long-

10440495-250287479376211537621

Dredging Technology and Equipment Co. Ltd. term holding

Shanghai Longchang Lifting Equipment Co. Strategic investment long-

739815739815-60184

Ltd. term holding

21st Centur y S c ience and Technology Strategic investment long-

-30000000

Investment Co. Ltd. term holding

Total 104859374 88358926 -7435254 14563459 -9815616 190530888 1602665 47288004 -33000200 /

(2). Derecognition in the current period

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

Disposal of other equity instrument investments in the year:

Accumulated gains transferred into

Fair value at derecognition Reason for derecognition

retained earnings due to de-recognition

CCCC Highway Bridges National Engineering Research Centre Co. Ltd. 7435254 3535254 DisposalANNUAL REPORT 2024

19. Other non-current financial assets

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

20. Investment properties

Measurement model of investment properties

(1) Investment properties with cost measurement mode

Unit: Yuan Currency: CNY

Buildings and Construction in

Item Land use right Total

constructions progress

I. Original book value

1. Balance as at December 31 2023 555622992 209845794 765468786

2. Increase in current period 25044473 25044473

(1) Outsourcing

(2) Transfer-in of inventories fixed assets and construction in progress 25044473 25044473

(3) Increase in business combination

3. Decrease in current period

(1) Disposal

(2) Other transfer-out

4. Balance as at December 31 2024 580667465 209845794 790513259

II. Accumulative depreciation and amortization

1. Balance as at December 31 2023 262871141 87666217 350537358

2. Increase in current period 27867350 5370796 33238146

(1) Provision or amortization 17736245 5370796 23107041

(2) Transfer-in of fixed assets 10131105 10131105

3. Decrease in current period

(1) Disposal

(2) Other transfer-out

4. Balance as at December 31 2024 290738491 93037013 383775504

III. Provision for impairment

1. Balance as at December 31 2023

2. Increase in current period

(1) Provision

3. Decrease in current period

(1) Disposal

(2) Other transfer-out

4. Balance as at December 31 2024

IV. Book value

1. Book value at the end of the period 289928974 116808781 406737755

2. Book value at the beginning of the period 292751851 122179577 414931428

(2). Investment property without certificate of title

Applicable √ Not applicable

(3). Impairment test of investment properties using cost measurement model

Applicable √ Not applicable

Other description:

Applicable √ Not applicableSection X Financial Report

21. Fixed assets

Item presentation

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Fixed assets

(1). Particulars about fixed assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Buildings and Mechanical Office and Transportation Item constructions equipment electronic facilities Vessel Totalequipment (excluding ship)

I. Original book value:

1. Balance as at December 31 2023 11540616956 7131596900 358514029 237866959 17045795331 36314390175

2. Increase in current period 166391506 284686553 67116262 24305679 4568527891 5111027891

(1) Purchase 62070555 140046218 61862437 24205037 32668517 320852764

(2) Transfer-in of construction in progress 104320951 144295069 5253825 100642 4475570697 4729541184

(3) Increase in business combination

(4) Exchange rate changes 345266 60288677 60633943

3. Decrease in current period -35067635 -339004627 -14548397 -11938741 -207669372 -608228772

(1) Disposal or scrap -10023162 -339004627 -13434152 -11938741 -207669372 -582070054

(2) Transfer-out to investment properties -25044473 -25044473

(3) Exchange rate changes -1114245 -1114245

4. Balance as at December 31 2024 11671940827 7077278826 411081894 250233897 21406653850 40817189294

II. Accumulated depreciation

1. Balance as at December 31 2023 5323768985 5593451642 265865102 160799633 4979622466 16323507828

2. Increase in current period 373136693 223240997 64533027 13288703 694778430 1368977850

(1) Provision 373136693 222833569 64533027 13288703 682589287 1356381279

(2) Exchange rate changes 407428 12189143 12596571

3. Decrease in current period -14866386 -333339293 -12107905 -11109681 -194570322 -565993587

(1) Disposal or scrap -4735281 -333339293 -11623664 -11109681 -194570322 -555378241

(2) Transfer-out to investment properties -10131105 -10131105

(3) Exchange rate changes -484241 -484241

4. Balance as at December 31 2024 5682039292 5483353346 318290224 162978655 5479830574 17126492091

III. Provision for impairment

1. Balance as at December 31 2023

2. Increase in current period

(1) Provision

3. Decrease in current period

(1) Disposal or scrap

4. Balance as at December 31 2024

IV. Book value

1. Book value at the end of the period 5989901535 1593925480 92791670 87255242 15926823276 23690697203

2. Book value at the beginning of the period 6216847971 1538145258 92648927 77067326 12066172865 19990882347

(2). Temporary idle fixed assets

Applicable √ Not applicableANNUAL REPORT 2024

(3). Fixed assets leased out through operating lease

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Book value at the end of the period

Vessel 2927752659

(4). Fixed assets without certificate of title

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Book value Reasons for pending certificate of title

Buildings and constructions 176651390 Related procedures are still in process

(5). Impairment test of fixed assets

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

As at December 31 2024 the following fixed assets were taken as loan mortgage:

Borrowings

Original price Book value

Nature Amount

Vessel 2944891835 2416269819 Long-term payables 1328207385

Liquidation of fixed assets

Applicable √ Not applicable

22. Construction in progress

Item presentation

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Construction in progress

(1) Particulars about construction in progress

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Item Provision for Provision for

Book balance Book value Book balance Book value

impairment impairment

Large machinery and engineering equipment of

96027375396027375348351733864835173386

the base under construction

Infrastructure construction of Changxing Base 180920080 180920080 150003066 150003066

Infrastructure construction of Nantong Base 136668794 136668794 46772645 46772645

Large mechanical reconstruction and upgrading

2382118423821184152526447152526447

project

Infrastructure construction of Nanhui Base 44990 44990 44990 44990

Total 1301728801 1301728801 5184520534 5184520534Section X Financial Report

(2) Changes of major construction in progress

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Including:

Amount Other Proportion of Capitalization

Cumulative capitalization

December Increase in transferred decreases cumulative rate for the

December 31 Construction amount of the

Project Budget 31 2023 the current into fixed in the project interest in Fund source

2024 Balance progress of interest interest in

Balance period assets in the current investment in the current

capitalized the current

current period period budget (%) period (%)

period

Infrastructure

Self-owned

construction of Nantong 8283456771 46772645 119618871 -29722722 136668794 87 87 - - -

funds

Base

Infrastructure Self-owned

construction of 9109560500 150003066 79782636 -48865622 180920080 80 80 26731294 3199458 2.15 f u n d s a n d

Changxing Base bank loans

Large machinery and

Self-owned

engineering equipment

11785853390 4835173386 475511668 -4350411301 960273753 88 88 343400265 7706117 1.16 f u n d s a n d

of the base under

bank loans

construction

Infrastructure

Self-owned

construction of Nanhui 562287425 44990 787611 -787611 44990 88 88 - - -

funds

Base

Large mechanical

Self-owned

reconstruction and 2879256710 152526447 171048665 -299753928 23821184 70 70 - - -

funds

upgrading project

Total 32620414796 5184520534 846749451 -4729541184 1301728801 / / 370131559 10905575 / /

(3). Provision for impairment of construction in progress in the current period

Applicable √ Not applicable

(4). Impairment test of constructions in progress

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Engineering materials

(1) Particulars about engineering materials

Applicable √ Not applicable

23. Productive biological assets

(1). Productive biological assets with cost measurement model

Applicable √ Not applicable

(2). Impairment test of productive biological assets using cost measurement model

Applicable √ Not applicable

(3). Productive biological assets measured by fair value

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

24. Oil and gas assets

(1) Oil and gas assets

Applicable √ Not applicableANNUAL REPORT 2024

(2) Impairment test of oil and gas assets

Applicable √ Not applicable

25. Right-of-use assets

(1) Right-of-use assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Buildings and constructions Other equipment Total

I. Original book value

1. Balance as at December 31 2023 84860630 3772246 88632876

2. Increase in current period 8288138 264090 8552228

3. Decrease in current period 9330647 - 9330647

4. Balance as at December 31 2024 83818121 4036336 87854457

II. Accumulated depreciation

1. Balance as at December 31 2023 22507125 3495571 26002696

2. Increase in current period 29994488 51721 30046209

(1) Provision 29994488 51721 30046209

3. Decrease in current period 6173752 - 6173752

(1) Disposal 6173752 - 6173752

4. Balance as at December 31 2024 46327861 3547292 49875153

III. Provision for impairment

1. Balance as at December 31 2023

2. Increase in current period

(1) Provision

3. Decrease in current period

(1) Disposal

4. Balance as at December 31 2024

IV. Book value

1. Book value at the end of the period 37490260 489044 37979304

2. Book value at the beginning of the period 62353505 276675 62630180

(2) Impairment test of right-of-use assets

Applicable √ Not applicable

26. Intangible assets

(1). Particulars about intangible assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Proprietary Contract assets related to

Item Land use right Software use fees Total

technology PPP projects (Note 1)

I. Original book value

1. Balance as at December 31 2023 4147926622 125390147 65296171 1040324394 5378937334

2. Increase in current period 26639565 367398790 394038355

(1) Purchase 26639565 367398790 394038355

(2) Internal R & D

(3) Increase in business combination

3. Decrease in current period 1057499 1057499

(1) Disposal 1057499 1057499

4. Balance as at December 31 2024 4147926622 150972213 65296171 1407723184 5771918190

II. Accumulated amortizationSection X Financial Report

Proprietary Contract assets related to

Item Land use right Software use fees Total

technology PPP projects (Note 1)

1. Balance as at December 31 2023 1136159334 84157105 65201807 1285518246

2. Increase in current period 84904850 14034576 98939426

(1) Provision 84904850 14034576 98939426

3. Decrease in current period 710765 710765

(1) Disposal 710765 710765

4. Balance as at December 31 2024 1221064184 97480916 65201807 1383746907

III. Provision for impairment

1. Balance as at December 31 2023

2. Increase in current period

(1) Provision

3. Decrease in current period

(1) Disposal

4. Balance as at December 31 2024

IV. Book value

1. Book value at the end of the period 2926862438 53491297 94364 1407723184 4388171283

2. Book value at the beginning of the

3011767288412330429436410403243944093419088

period

Remark 1: This item represents the portion that recognizes the consideration amount or the recognized construction revenue amount of relevant PPP

project assets as intangible assets in accordance with the requirements of “Interpretation of Accounting Standards for Business Enterprises No. 14” and the

contract assets recognized during the relevant construction period should be presented in the “Intangible assets” item in the balance sheet. As of December

31 2024 the Group has two PPP projects under the intangible asset model both of which are under construction. The total investment of the project is RMB

3.07 billion and the accumulated investment is RMB 1.41 billion.

As at December 31 2024 the intangible assets were RMB 1387620730 (as at December 31 2023: RMB 1024431906) which had been pledged to the bank

as the guarantee for the long-term borrowings of RMB 3031253334 (as at December 31 2023: Long-term borrowings of RMB 3142068341). See Note VII (45)

for details.In 2024 total technology research and development expenses of the Group amounted to RMB 1502397344 (2023: RMB 1311556665). These technology

research and development expenses are not capitalized.

(2) Data resources recognized as intangible assets

Applicable √ Not applicable

(3) Land use right without certificate of title

Applicable √ Not applicable

(4) Impairment test of intangible assets

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

27. Goodwill

(1). Original book value of goodwill

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in current period Decrease in

Name of the invested entity or the matters December 31 current period December 31

forming goodwill 2023 Formed by business 2024

combination Others Disposal

ZPMC Qidong Marine Engineering Co. Ltd. 149212956 149212956

Verspannen B.V. 5412807 5412807

Greenland Heavy lift (Hong Kong) Limited 115546604 1724381 117270985

Total 270172367 1724381 271896748ANNUAL REPORT 2024

(2). Provision for impairment of goodwill

Applicable √ Not applicable

(3). Information about the asset group or portfolio of the goodwill

Applicable √ Not applicable

Changes in asset group or combination of asset groups

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

(4). Specific method for determining the recoverable amount

The recoverable amount is determined based on the net amount after deducting disposal costs from the fair value

Applicable √ Not applicable

The recoverable amount is determined based on the present value of expected future cash flows

Applicable √ Not applicable

Reasons for discrepancies between the foregoing information and the information used in impairment test in previous

years or external information

Applicable √ Not applicable

Reasons for discrepancies between the information used in impairment test in previous years by the Company and the

actual conditions of the current year

Applicable √ Not applicable

(5) Performance commitment and corresponding goodwill impairment

There is a performance commitment when goodwill is formed and the reporting period or the period before the

reporting period is within the performance commitment period

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

Remark 1: The decrease in the current year was caused by the translation differences of foreign currency statement.As at December 31 2024 the Group had no provision for the impairment of goodwill. When the impairment test is

conducted

the book value of goodwill is amortized to the asset group portfolio expected to benefit from the synergistic effect of

business combination.The goodwill acquired through business combination has been distributed to the following asset groups for impairment

test:

* Heavy equipment asset group

* Semi-submerged ship transport assets group of Greenland Heavylift (Hongkong) Limited (GHHL)

Heavy equipment asset group

The heavy equipment asset portfolio is mainly composed of various types of heavy equipment produced in collaboration

by various production bases which is consistent with the combination of asset groups determined by the impairment

test of previous years. The beneficiary of the synergy effect from the acquisition of ZPMC Qidong Marine Engineering Co.Ltd. and Verspannen B.V. is the entire combination of asset groups of heavy equipment and it is difficult to allocate to

each asset group so the goodwill is allocated to the combination of asset groups of heavy equipment. The recoverable

amount of heavy equipment asset group is measured based on the five-year budget approved by the management

and shall be measured with cash flow forecast method. Cash flow over 5-year period shall be calculated based on the

estimated growth rate.Section X Financial Report

The main assumptions of the future cash flow discount method:

Growth rate during forecast period 4.86%-13.20%

Perpetual growth rate 2.00%

Gross profit rate 12.62%-14.21%

Pre-tax discount rate 12.72%

GHHL semi-submerged ship transport assets group

The combination of asset group of GHHL semi-submersible vessel transport is primarily composed of four semi-

submersible vessels. which is consistent with the combination of asset groups determined by the impairment test of

previous years. The recoverable amount is determined based on the expected future cash flow of the combination of

asset group and the expected future cash flow is determined according to the cash flow forecast based on the transport

service contract revenue expected to be obtained within the service life of vessel.The main assumptions of the future cash flow discount method:

Number of customized short-distance and long-distance transport service contracts expected to be obtained 4/year/vessel

Vessel utilization rate of general charter party 70.00%-79.68%

Charter rate of general charter party USD 73000/day

Pre-tax discount rate 11.00%

The distributions of the book value of goodwill to asset groups are as follows:

GHHL semi-submerged ship transport

Heavy equipment asset group Total

assets group

202420232024202320242023

Book amount of goodwill 154625763 154625763 117270985 115546604 271896748 270172367

The perpetual growth rate adopted by management does not exceed the industry's long-term average growth rate.Based on the historical experience and the forecasts of market development the management determines the budget

gross profit rate and adopts the pretax interest rate which can reflect the specific risk of relevant asset group portfolio as

the discount rate. The above assumptions are used to analyze the recoverable amount of the asset group portfolio.

28. Long-term deferred expenses

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in the Amortization in the

Item December 31 2023 Other decreases December 31 2024

current period current period

Improvement expenditure of fixed

10559831140868-6034041593447

assets under operating lease

Total 1055983 1140868 -603404 1593447

29. Deferred income tax assets/deferred income tax liabilities

(1). Deferred income tax assets before offsetting

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Item Deductible temporary Deductible temporary

Differences Assets Differences Assets

differences differences

Provision for impairment of assets 3461041250 520335376 3507168898 528354728

Deductible loss 2291484194 343722629 2374214264 356132140

Estimated liabilities 181513116 27226967 147187314 22078097

Unrealized profits of internal transactions 134528300 20179245 99413440 14912016

Lease liabilities 37979304 5696896 88632876 13294931ANNUAL REPORT 2024

December 31 2024 December 31 2023

Item Deductible temporary Deductible temporary

Differences Assets Differences Assets

differences differences

Unrealized contract gross profit 37559913 5633987 42585456 6387818

Wages and salaries unpaid 29257710 4388657 29335075 4400261

Interest unpaid 14976485 2246474 16042710 2406407

Total 6188340272 929430231 6304580033 947966398

(2). Deferred income tax liabilities before offsetting

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Item Taxable temporary

differences Differences Liabilities

Taxable temporary

differences Differences Liabilities

Revaluation surplus on assets in business

combinations not under common control 71002874 10650431 79981605 11997241

Fair value change of other debt investments

Fair value change of other equity instrument

investments 44287803 6643170 45075214 6761282

Depreciation of fixed assets 934599097 147493299 826801337 130266550

Changes in fair value of held-for-trading financial

assets 128576476 19365924 168131787 25219768

Right-of-use assets 37979304 5696896 88632876 13294931

Total 1216445554 189849720 1208622819 187539772

(3). Deferred income tax assets or liabilities presented by net amount after offset

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Offset amount of deferred Balance of deferred income Offset amount of deferred Balance of deferred income

Item income tax assets and tax assets and liabilities income tax assets and tax assets and liabilities after liabilities at the end of the after offset at the end of the liabilities at the beginning of offset at the beginning of the

period period the period period

Deferred income tax

assets 52161198 877269033 54267502 893698896

Deferred income tax

liabilities 52161198 137688522 54267502 133272270

(4). Details of unrecognized deferred income tax assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Deductible temporary differences 837136068 810029865

Deductible loss 1071390149 1202607348

Total 1908526217 2012637213

(5). The deductible losses on the unrecognized deferred income tax assets will become due in the following years

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Year December 31 2024 December 31 2023 Remark

2024-230620753

2025228570806264416621

2026269170078270525356

2027225569918226737420

2028 210141543 210307198Section X Financial Report

Year December 31 2024 December 31 2023 Remark

2029137937804-

Total 1071390149 1202607348 /

Other description:

Applicable √ Not applicable

30. Other non-current assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Item Provision for Provision for

Book balance Book value Book balance Book value

impairment impairment

Contract acquisition cost

Contract performance cost

Return cost receivable

Contract assets

PPP projects completed but

3876980634387698063440955049224095504922

not settled

Contract warranty balance

10229604869124928093171120688807590459009205829066699

receivable

Total 4899941120 91249280 4808691840 4983580826 59009205 4924571621

Other description:

As at December 31 2024 other non-current assets were RMB 3819083104 (as at December 31 2023: RMB 3616427706)

which had been pledged to the bank as the guarantee for the long-term borrowings of RMB 3031253334 (as at

December 31 2023: Long-term borrowings of RMB 3142068341).The changes in the provision for impairment of the contract warranty balance receivable are as follows:

Opening balance Provision in the current year Reversal in the current year Closing balance

20245900920582407827-5016775291249280

20232501886754323860-2033352259009205

31. Assets with ownership or use rights restricted

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Item Restriction Restriction

Book balance Book value Restriction Book balance Book value Restriction

type type

Other non-current

3819083104 3819083104 Pledge Pledged borrowings 3616427706 3616427706 Pledge Pledged borrowings

assets

Fixed assets 2944891835 2416269819 Mortgage Mortgage borrowings 2869401270 2447188251 Mortgage Mortgage borrowings

Long-term

1140307484 1140307484 Pledge Pledged borrowings 1435459418 1435459418 Pledge Pledged borrowings

receivables

Intangible assets 1387620730 1387620730 Pledge Pledged borrowings 1024431906 1024431906 Pledge Pledged borrowings

Accounts

352782386 352782386 Pledge Pledged borrowings 254958240 254958240 Pledge Pledged borrowings

receivable

Contract assets 203952618 203952618 Pledge Pledged borrowings 146326607 146326607 Pledge Pledged borrowings

Special fund L/C deposits Special fund L/C deposits

L/G deposits etc. in the L/G deposits etc. in the

Monetary funds 43651264 43651264 Margin 72908531 72908531 Margin

overseas supervision overseas supervision

account account

Total 9892289421 9363667405 / / 9419913678 8997700659 / /ANNUAL REPORT 2024

32. Short-term borrowings

(1). Classification of short-term borrowings

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Pledged borrowings

Mortgage borrowings

Guaranteed borrowings

Fiduciary borrowings 2297334457 4781640779

Total 2297334457 4781640779

Description of the classification of short-term borrowings:

As of December 31 2024 there were no overdue borrowings (December 31 2023: none).

(2). Overdue outstanding short-term borrowings

Applicable √ Not applicable

The important overdue outstanding short-term borrowings are as follows:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

33. Held-for-trading financial liabilities

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

34. Derivative financial liabilities

Applicable √ Not applicable

35. Notes payable

(1). Presentation of notes payable

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Type December 31 2024 December 31 2023

Commercial acceptance bills

Banker's acceptance bills 4584675393 5533470582

Total 4584675393 5533470582

The total amount of notes payable due but unpaid at the end of the period is RMB 0.

36. Accounts payable

(1). Presentation of accounts payable

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Payables for material purchase and product manufacturing 9280899772 7509905442

Infrastructure payables 810462550 627800506

Quality guarantee deposit payable 350540185 348169253

Equipment and vessel purchase payables 158211216 126146515

Port charge payable 3368393 4037422

Total 10603482116 8616059138

(2). Important accounts payable with the aging over 1 year or overdue

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

As of 2024 there are no important accounts payable with the aging over 1 year or overdue (2023: nil).

37. Advances from customers

(1). Presentation of advances from customers

Applicable √ Not applicable

(2). Important advances from customers with the aging over 1 year

Applicable √ Not applicable

(3) Amount of and reason for significant changes in book value during the reporting period

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

38. Contract liabilities

(1). Particulars about contract liabilities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Advances from customers for goods 20468881119 17729437720

Amount settled for uncompleted work 1016952048 1501211476

Total 21485833167 19230649196

(2). Significant contractual liability with the aging over more than 1 year

Applicable √ Not applicable

(3) Amount of and reason for significant changes in book value during the reporting period

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

In 2024 there were no important contract liabilities with the aging over 1 year (2023: nil). The increase in the closing

balance of advances from customers was due to the increase in advance payments for products received but not yet

delivered.ANNUAL REPORT 2024

39. Payroll payable

(1). Presentation of payroll payable

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in current Decrease in current

Item December 31 2023 December 31 2024

period period

I. Short-term compensation 40097393 2270350627 2270258106 40189914

II. Post-employment benefits - defined contribution plans 366006581 366006581

III. Dismissal benefits

IV. Other benefits due within one year

Total 40097393 2636357208 2636264687 40189914

(2). Presentation of short-term compensation

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in current Decrease in current

Item December 31 2023 December 31 2024

period period

I. Salaries bonuses allowances and

1818978741-1818978741

subsidies

II. Employee welfare 79742398 -79742398

III. Social insurance premium 149014904 -149014904

Including: medical insurance premium 127559654 -127559654

Work-related injury insurance

10262525-10262525

premium

Maternity insurance premium 11192725 -11192725

IV. Housing provident funds 473 165931442 -165931442 473

V. Union expenditures and employee

4009692030899494-3080697340189441

education expenses

VI. Short-term paid absence

VII. Short-term profit sharing plan

VIII. Other short-term compensation 25783648 -25783648

Total 40097393 2270350627 -2270258106 40189914

(3). Presentation of defined contribution plans

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in current Decrease in current

Item December 31 2023 December 31 2024

period period

1. Basic endowment insurance premium 242988296 -242988296

2. Unemployment insurance premium 7590600 -7590600

3. Enterprise annuity payment

4. Supplementary endowment insurance

115427685-115427685

premium

Total 366006581 -366006581

Other description:

Applicable √ Not applicable

40. Tax payable

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Urban maintenance and construction tax 111162731 61251495

Education surtax 79862503 44474506

VAT 70408947 128853878

Individual income tax 30646014 20428867

Enterprise income tax 29004265 47342318

Others 23145714 22290070

Total 344230174 324641134

41. Other payables

(1). Item presentation

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Interest payable

Dividends payable 6593 6593

Other payables 890043935 1021369667

Total 890050528 1021376260

Other description:

Applicable √ Not applicable

(2). Interest payable

Presentation by category

Applicable √ Not applicable

Overdue significant interests payable:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

(3). Dividends payable

Presentation by category

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Common stock dividends

Preferred stock/perpetual debt dividends classified as equity instruments

Dividends payable - Macau Zhenhua Harbour Construction Co. Ltd. 6593 6593

Total 6593 6593

Other explanations including important dividends payable that have not been paid for more than one year the reasons

for non-payment shall be disclosed:

As at December 31 2024 the reason for the dividend payable with the aging over 1 year amounting to RMB 6593 (as at

December 31 2023: RMB 6593) was that the shareholders of the Company had not requested for actual payment by the

Group.ANNUAL REPORT 2024

(4). Other payables

Other payables presented by nature

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Engineering deposit and quality guarantee deposit 415415658 382408621

Customer collection under asset-backed special program 121352624 259786783

Amounts due to related parties 61706639 125184859

Special payables 14963440 14963440

Others 276605574 239025964

Total 890043935 1021369667

Other important payables with the aging over 1 year or overdue

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

As at December 31 2024 there were no other significant payables aged over 1 year or overdue.

42. Liabilities held for sale

Applicable √ Not applicable

43. Non-current liabilities due within one year

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Long-term borrowings due within one year 6568218962 8479586192

Bonds payable due within one year

Long-term payables due within one year 151299725 141133271

Lease liabilities due within one year 26201960 29980926

Total 6745720647 8650700389

Other description:

None

44. Other current liabilities

Other current liabilities

Applicable √ Not applicable

Increase or decrease of short-term bonds payable:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

45. Long-term borrowings

(1). Classification of long-term borrowings

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Pledged borrowings (i) 3031253334 3142068341

Mortgage borrowings

Guaranteed borrowings

Fiduciary borrowings 21322670123 20442741930

Less: Long-term borrowings due within one year

Fiduciary borrowings -6411176087 -8192403215

Pledged borrowings -157042875 -287182977

Total 17785704495 15105224079

Description of the classification of long-term borrowings:

None

Other description:

√ Applicable Not applicable

As at December 31 2024 the annual interest rate on the aforesaid borrowings ranges from 1.0% to 4.9% (as at December

31 2023: 1.20% to 4.4%).

(i) As at December 31 2024 the total amount of multiple pledged loans amounting to RMB 3031253334 (as at December

31 2023: RMB 3142068341) took the long-term accounts receivable other non-current assets intangible assets contract

assets and accounts receivable of the PPP projects of the Group as pledge. See VII (16) VII (30) VII (26) VII (6) and VII (5).The interest shall be paid quarterly and the principal shall be repaid between January 10 2025 and March 25 2050 (as at

December 31 2023: the principal shall be repaid between June 14 2024 and March 25 2050).

46. Bonds payable

(1). Bonds payable

Applicable √ Not applicable

(2). Details of bonds payable: (Excluding other financial instruments such as preferred stocks and perpetual capital

securities classified as financial liabilities)

Applicable √ Not applicable

(3). Explanation of convertible corporate bonds

Applicable √ Not applicable

Accounting treatment and judgment basis for equity transfer

Applicable √ Not applicable

(4). Description of other financial instruments classified as financial liabilities

Basic information of outstanding preferred shares perpetual bonds and other financial instruments at the end of the

period

Applicable √ Not applicable

Changes in outstanding preferred shares perpetual bonds and other financial instruments at the end of the period

Applicable √ Not applicable

Description of the basis for classifying other financial instruments as financial liabilities:

Applicable √ Not applicable

Other description:

Applicable √ Not applicableANNUAL REPORT 2024

47. Lease liabilities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Buildings and constructions 36417411 61251331

Other equipment 230336 277779

Less: Lease liabilities due within one year

Buildings and constructions -26118764 -29931702

Other equipment -83196 -49224

Total 10445787 31548184

Other description:

None

48. Long-term payables

Item presentation

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Long-term payables 1717210910 1744502983

Special payables

Total 1717210910 1744502983

Other description:

√ Applicable Not applicable

20242023

Leaseback financing fund (i) 1328207385 1450784119

“Building - transfer” and PPP project fund (ii) 262957217 262957217

Project quality guarantee deposit 277346033 171894918

Less: Leaseback financing fund due within one year -151299725 -141133271

Total 1717210910 1744502983

(i) As at December 31 2024 the long-term payables of RMB 1328207385 (as at December 31 2023: RMB 1450784119)

were obtained from the vessel with the book value of RMB 2416269819 (as at December 31 2023: RMB 2447188251)

(Note VII (21)) in leaseback way from the financial leasing company with the maturity date from January 24 2025 to July

24 2033 (as at December 31 2023: from January 24 2024 to July 24 2033). The Group will pay the leaseback financing

fund on schedule each year to the financial leasing company in accordance with the contract terms. The Group takes the

above series of transactions as mortgage loans for accounting treatment.(ii) The Group and the construction party of “building-transfer” and PPP project agreed that part of the project payments

would be paid to the construction party after the final acceptance of the “building-transfer” project within a certain term.Long-term payables

(1). Presentation of long-term payables by nature

Applicable √ Not applicable

Special payables

(1). Presentation of special payables by nature

Applicable √ Not applicableSection X Financial Report

49. Long-term payroll payable

Applicable √ Not applicable

50. Estimated liabilities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023 Causes

External guarantee

Pending litigation

Product quality guarantee deposit

Restructuring obligations

Loss contracts to be executed

Refund payable

Others

Estimated after-sale service cost 208887331 168217597

Total 208887331 168217597 /

Other description including relevant important assumptions and estimates of important estimated liabilities:

The Group’s estimated liabilities is the provision for after-sales service costs. The Group has formulated a budget for after-

sales service costs based on the actual historical after-sales service costs of similar products in similar sales areas which

makes provision for estimated liabilities in accordance with the budget amount when the products are sold and reduces

the estimated liabilities when after-sales services are actually performed.

51. Deferred income

Deferred income

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2023 Increase in current period Decrease in current period December 31 2024 Causes

Government subsidies 336137781 17255200 -43748097 309644884

Land compensation 32917201 - -1000000 31917201

Total 369054982 17255200 -44748097 341562085 /

Other description:

√ Applicable Not applicable

Among the above government subsidies some projects are government subsidies related to assets and the rest are

related to income.Land compensation refers to the land compensation acquired by a subsidiary of the Company which shall be amortized

over the 50 years’ land use term.

52. Other non-current liabilities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

Output tax to be carried forward 251996220 247185330

Total 251996220 247185330

Other description:

On balance sheet date the revenue of some construction contracts and interest income of “building-transfer” projects of

the Company had not reached the time point of the VAT liability.ANNUAL REPORT 2024

53. Share capital

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase/decrease (+/-)

December 31 2023 Issue New Capitalized December 31 2024

Share donation Others Sub-total

shares issued shares

Total shares 5268353501 5268353501

Other description:

None

54. Other equity instruments

(1). Basic information of outstanding preferred shares perpetual bonds and other financial instruments at the end of the

period

Applicable √ Not applicable

(2). Changes in outstanding preferred shares perpetual bonds and other financial instruments at the end of the period

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in current Decrease in current

Outstanding financial December 31 2023 December 31 2024period period

instruments

Quantity Book value Quantity Book value Quantity Book value Quantity Book value

S hanghai Zhenhua Heav y

I n d u s t r i e s C o. L t d . 2 0 2 2 5000000 500000000 5000000 500000000

medium-term notes series I

Total 5000000 500000000 5000000 500000000

Description of the increase and decrease of other equity instruments in the current period reasons for changes and basis

for relevant accounting treatment:

Applicable √ Not applicable

Other description:

√ Applicable Not applicable

The Group issued the perpetual notes on August 24 2022 with a term of 3+N (3) years which will survive for a long time

before the Group redeems in accordance with the terms of issue and will mature when the issuer redeems in accordance

with the terms of issue. The initial coupon of perpetual notes is 3.22%. In accordance with the terms of issue of medium-

term notes the Company has the right to distribute cash interest annually at annual interest rate and has no contractual

obligation to repay the principal or pay any interest free of charge. Except for compulsory interest payment on each

interest payment date of medium-term notes the Group may at its own option postpone the payment of current interest

and all deferred interest and its fruits in accordance with this clause to the next interest payment date and is not limited

by the number of deferred interest payments. On the reset date of the coupon rate of medium-term notes the Company

has the right to redeem the medium-term notes at face value plus interest payable (including all deferred interest

payments). The Group deems that the notes do not meet the definition of financial liabilities and therefore classifies it as

other equity instruments.Section X Financial Report

55. Capital reserves

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Increase in current Decrease in current

Item December 31 2023 December 31 2024

period period

Capital premium (hare premium) 4537774553 4537774553

Other capital reserves

Other equity changes in investees accounted for

-19561335-19561335

by the equity method

Business combination under common control -16203111 -16203111

Purchase of minority interest 6950038 -185548189 -178598151

Absorption of minority shareholders’ investments

245571072245571072

by subsidiaries

Share payment expenses - 12144098 12144098

Transfer-in of capital reserves under the original

128059561128059561

system

Total 4882590778 12144098 -185548189 4709186687

Other description including the increase and decrease in the current period and the reasons for changes:

None

56. Treasury stock

Applicable √ Not applicable

57. Other comprehensive income

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount incurred in the current period

Less: amount Less: amount

previously previously

December 31 included in included in Attributable Attributable December 31

Item 2023 Pre-tax the other the other to the to the 2024

Balance amount comprehensive comprehensive

Less: income parent minority Balance

income and income and tax expenses company equity after

currently currently after tax tax

transferred to transferred to

the profit or loss retained earnings

I. Other comprehensive income that

can’t be reclassified into profit and 6613933 4747843 3004966 181888 1560989 8174922

loss

Including: Remeasure the variation

of net indebtedness or net asset of

defined benefit plan

Other comprehensive

income that can't be

reclassified into profit

and loss in the invested

enterprise under equity

method

Fair value change of

other equity instrument 6613933 4747843 3004966 181888 1560989 8174922

investments

Fair value change of

enterprise credit risks

II. Other comprehensive income that

will be reclassified into profit and loss 52386369 11053294 -14853722 17191505 8715511 69577874

Including: Other comprehensive

income that will be reclassified into -7231472 -207159 -14853722 14646563 7415091

profit and loss under equity method

Fair value change of other

debt investmentsANNUAL REPORT 2024

Amount incurred in the current period

Less: amount Less: amount

previously previously

December 31 included in included in Attributable Attributable December 31

Item 2023 Pre-tax the other the other comprehensive comprehensive Less: income

to the to the 2024

Balance amount income and income and tax expenses

parent minority Balance

company equity after

currently currently after tax tax

transferred to transferred to

the profit or loss retained earnings

Amount of financial assets

reclassified into other

comprehensive income

Provision for credit

impairment of other debt

investments

Cash flow hedging reserve

Translation reserve 59617841 11260453 2544942 8715511 62162783

Total other comprehensive income 59000302 15801137 -14853722 3004966 181888 18752494 8715511 77752796

Other description including the adjustment of the initial recognition amount of the effective part of profit or loss of cash

flow hedging converted into the hedged item:

None

58. Special reserves

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2023 Increase in current period Decrease in current period December 31 2024

Work safety expenses 10525094 94703880 -88497945 16731029

Total 10525094 94703880 -88497945 16731029

Other description including the increase and decrease in the 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

the work safety expenses according to the standards. The increase or decrease in current year was the work safety

expenses withdrawn and used by the Group for the reporting year in accordance with relevant requirements.

59. Surplus reserves

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2023 Increase in current period Decrease in current period December 31 2024

Statutory surplus reserves 1418926377 41878705 1460805082

Discretionary surplus reserves 292378668 292378668

Reserve fund

Enterprise development fund

Others

Total 1711305045 41878705 1753183750

Description of surplus reserves including the increase and decrease in current period and the reasons for changes:

The increase in the surplus reserve for the year was appropriated in accordance with the Company Law of the People's

Republic of China the Company's Articles of Association and a resolution of the Board of Directors whereby 10% of the

annual net profit was transferred to the statutory surplus reserve.The statutory surplus reserves can be used to compensate loss upon approval or to increase share capital. The statutory

surplus reserves appropriated by the Company amounted to RMB 41878705 in 2024 (2023: RMB 7386369).Section X Financial Report

60. Undistributed profits

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Current period Previous period

Undistributed profits at the end of previous period before adjustment 3324778074 2825870678

Total undistributed profits at the beginning of the adjustment period

(increase + decrease -) 3324778074 2825870678

Undistributed profits at the beginning of the period after adjustment 533524077 519978765

Carryforward retained earnings of other comprehensive income 3004966

Plus: Net profit attributable to owners of the parent company 41878705 7386369

Less: withdrawal of statutory surplus reserves

Withdrawal of discretionary surplus reserve

Withdrawal of general risk preparation

Common stock dividends payable

Common stock dividends converted to share capital 263417675

Distribution of cash dividends on common stock 13685000 13685000

Distribution of interest on the perpetual medium-term notes 3542325737 3324778074

Details of undistributed profit at the beginning of adjustment period:

1. Due to the retroactive adjustment of “Accounting Standards for Business Enterprises” and related new regulations the

impact on undistributed profits at the beginning of the period was RMB 0.

2. The impact of changes in accounting policies on undistributed profits at the beginning of the period was RMB 0.

3. The impact of correction of major accounting errors on undistributed profits at the beginning of the period was RMB 0.

4. The impact of change of consolidation scope caused by the common control on undistributed profits at the beginning

of the period was RMB 0.

5. The total impacts of other adjustment on undistributed profits at the beginning of the period were RMB 0.

61. Operating revenue and operating costs

(1) Operating revenue and operating costs

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount incurred in the current period Amount incurred in the previous period

Item

Revenue Cost Revenue Cost

Primary business 34277325984 29925258993 32742292225 28407567714

Other business 179094197 134912308 190971577 72818080

Total 34456420181 30060171301 32933263802 28480385794

(2). Breakdown of operating income and operating cost

√ Applicable Not applicable

Unit: Yuan Currency: CNY

XXX-Division Total

Classification of Contract

Operating revenue Operating costs Operating revenue Operating costs

Type of goods

Port machinery 20593596470 17500885960

Heavy equipment 8292575548 7544542230

Steel structure and related income 3341971292 3293532465

Shipping and lifting services 1324871410 849569593

Engineering construction projects 413546349 454731637ANNUAL REPORT 2024

XXX-Division Total

Classification of Contract

Operating revenue Operating costs Operating revenue Operating costs

Lease income 384134037 312810549

Sales of materials and others 105725075 104098867

Regions of operation

Chinese Mainland 18259962071 15039752036

Asia (excluding Chinese Mainland) 9789555392 9509188618

Africa 1789859277 1416915247

North America 1664901303 1408156092

Europe 1437730953 1370106110

South America 1194357090 1024288862

Oceania 173662869 149654203

Chinese Mainland (export sales) 146391226 142110133

Market or customer type

Contract type

By time of goods transfer

Transfer at a certain point 25587941197 22212923584

Transfer within a certain period 8868478984 7847247717

By contract term

By sales channel

Total 34456420181 30060171301

Other description:

Applicable √ Not applicable

(3) Performance obligations

Applicable √ Not applicable

(4) Apportionment to remaining performance obligations

Applicable √ Not applicable

(5). Major contract changes or major transaction price adjustments

Applicable √ Not applicable

Other description:

The revenue recognized in the current year and included in the book value of contract liabilities at the beginning of the

year is as follows:

20242023

Advances from customers for goods 8896160050 6537380834

Settled amount with unfinished construction 737930271 406509673

Total 9634090321 6943890507

The revenue recognized in the current year for performance obligations that have been fulfilled (or partially fulfilled) in

the previous period is as follows:

20242023

Steel structure and related income 1391656219 2667439984

Engineering construction projects 413546349 1528578218

Total 1805202568 4196018202

The information related to performance obligations of the Group is as follows:

Sales of port machinery heavy equipment and steel structure productsSection X Financial Report

For the port machinery production contract that meets the performance obligations within a certain period of

time the Group performs its performance obligations within the time of manufacturing and transferring the port

machinery; for the port machinery production contract that does not meet the performance obligations within a certain

period of time the Group performs its obligations when delivering port machinery to customers and obtaining pre-

delivery certificate or other relevant delivery certificates. For the heavy equipment production contract that meets the

performance obligations within a certain period of time the Group performs its performance obligations within the time

of manufacturing and transferring the heavy equipment; for the heavy equipment production contract that does not

meet the performance obligations within a certain period of time the Group performs its obligations when delivering

heavy equipment to customers and obtaining the handover protocol or other relevant delivery certificate. For the steel

structure product manufacturing contract that meets the performance obligations within a certain period of time

the Group performs its performance obligations within the time of manufacturing and transferring the steel structure

product; for the steel structure product manufacturing contract that does not meet the performance obligation within a

certain period of time the Group performs its performance obligations when the steel structure product is delivered and

signed by the owner. The contract price is usually paid according to the payment schedule agreed in the contract. After

the delivery of the goods the customer usually retains a certain proportion of the quality guarantee deposit which is

usually paid after the expiration of the quality guarantee period. The Group provides guaranteed warranty for the above

products.Building services

The Group performs its performance obligations within the time of providing services and the contract price is usually

paid within 30 days after the settlement of the project. The customer usually retains a certain proportion of the quality

guarantee deposit which is usually paid after the expiration of the quality guarantee period.Shipping services

The Group performs its performance obligations within the time of providing transportation services. The contract price

is usually paid within the period from 3 days before unloading to 30 days after unloading.

62. Taxes and surcharges

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Consumption tax

Sales tax

Urban maintenance and construction tax 135840528 104097505

Education surtax 97372565 76075161

Resource tax

Housing property tax 55296637 58774780

Land use tax 18047122 22714667

Vehicle and vessel use tax

Stamp duty 26312149 27381428

Others 1563806 2256084

Total 334432807 291299625

Other description:

None

63. Selling and distribution expenses

√ Applicable Not applicableANNUAL REPORT 2024

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Employee compensation 145189192 127513128

Warehousing service fees 23300999 20416858

Travel expenses 17381404 15943403

Entertainment expenses 13281060 12354694

Advertising and publicity costs 9680974 11030729

Regional operating expenses 8382699 11073494

Office expenses 2567767 2127577

Bidding and tendering expenses 1419902 3431535

Sales and service fees 379586 1148066

Others 11070899 6321709

Total 232654482 211361193

Other description:

None

64. General and administrative expenses

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Employee compensation 446623111 436308835

Office expenses 60199065 59250407

Amortization of intangible assets 57695436 95551707

Expenses from employment of intermediaries 43063570 28892009

Depreciation of fixed assets 40905205 41878893

Travel expenses 30612547 29759126

Consulting fees 24779731 24404406

Informatization expenses 18915043 39164783

Management and security fees 18707219 23872303

Maintenance cost 16786128 9487567

Management and cleaning fees 15453423 16946187

Entertainment expenses 10504423 10800158

Insurance expenses 6798582 7466936

Others 27414189 25400119

Total 818457672 849183436

Other description:

None

65. Research and development expenses

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Employee compensation 679993523 616931085

Materials expenses 442521920 394464827

Processing expenses 213863366 172861680

Depreciation expenses 87025975 94644503

Product design expenses 1673459 2497150

Others 77319101 30157420

Total 1502397344 1311556665Section X Financial Report

Other description:

None

66. Financial expenses

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Interest expenses 849205155 996663353

Less: interest income 389180961 429793598

Less: Capitalized amount of interest 36303855 30797541

Exchange losses/gains -124588833 -44672150

Others 25814293 54650386

Total 324945799 546050450

Other description:

The capitalized amounts of borrowing costs have been included in the construction in progress and intangible assets.

67. Other income

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Classification by nature Amount incurred in the current period Amount incurred in the previous period

Fiscal appropriation 103404892 69206574

Technological subsidy 33434470 26342363

Fiscal appropriation 7737582 2740400

Land compensation 1000000 1000000

Total 145576944 99289337

Other description:

None

68. Investment income

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Income from long-term equity investment calculated under the

3872226978028096

equity method

Investment income from disposal of long-term equity

investment

Investment income from held-for-trading financial assets during

2296681842373171

the holding period

Dividend income from other equity instrument investment

1602665335790

during holding

Interest income from debt investment during holding

Interest income from other debt investment during holding

Investment income from disposal of held-for-trading financial

8462422579113455

assets

Investment income from disposal of other equity instrument

investment

Investment income from disposal of debt investment

Investment income from disposal of other debt investmentANNUAL REPORT 2024

Item Amount incurred in the current period Amount incurred in the previous period

Income from debt restructuring

Investment loss resulting from disposal of long-term equity

-11152053

investment

Losses on derecognition of financial assets measured at

-54613813-115312416

amortized cost

Others -4028680 -16628696

Total 78121431 67909400

Other description:

The Group derecognized some financial assets measured at amortized cost this year recognized a loss of RMB 54613813

(2023: loss of RMB 115312416) and included it in investment income.

69. Net exposure hedging gain

Applicable √ Not applicable

70. Income from fair value change

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Sources of income from fair value change Amount incurred in the current period Amount incurred in the previous period

Held-for-trading financial assets

Including: income from fair value change of derivative

financial instruments

Held-for-trading financial liabilities

Investment property measured at fair value

Investment in listed company stocks 13425987 -27339814

Total 13425987 -27339814

Other description:

None

71. Credit impairment loss

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Loss on bad debts of notes receivable

Loss on bad debts of accounts receivable 445560896 255353083

Loss on bad debts of other receivables -27146080 20957012

Loss on impairment of debt investment

Loss on impairment of other debt investment

Loss on bad debts of long-term receivables

Impairment loss related to financial guarantees

Total 418414816 276310095

Other description:

NoneSection X Financial Report

72. Assets impairment losses

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

I. Impairment loss of contract assets 111128139 135250939

II. Loss on price falling of inventory and impairment loss of

89687400293593261

contract performance costs

III. Impairment loss of long-term equity investment

IV. Impairment loss of investment property

V. Impairment loss of fixed assets

VI. Impairment loss of engineering materials

VII. Impairment loss of construction in progress

VIII. Impairment loss of productive biological assets

IX. Impairment loss of oil and gas assets

X. Impairment loss of intangible assets

XI. Goodwill impairment loss

XII. Others

Total 200815539 428844200

Other description:

None

73. Income from disposal of assets

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Income from disposal of fixed assets 106961574 79038662

Total 106961574 79038662

Other description:

None

74. Non-operating income

Non-operating income

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount incurred in the Amount incurred in the Amount included in non-recurring

Item

current period previous period profit or loss in current period

Total gains from disposal of non-current assets

Including: Gains from disposal of fixed assets

Gains from disposal of intangible assets

Gains from exchange of non-monetary assets

Accepting donations

Government subsidies

Amercement gains 26216701 14192396 26216701

Government grants irrelevant to daily activities 8714965 8191485 8714965

Revenue from insurance indemnity 4010243 1828986 4010243

Others 15057036 6031102 15057036

Total 53998945 30243969 53998945ANNUAL REPORT 2024

Other description:

Applicable √ Not applicable

75. Non-operating expenditure

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount incurred in the Amount incurred in the Amount included in non-recurring

Item

current period previous period profit or loss in current period

Total loss on disposal of non-current assets

Including: Loss on disposal of fixed assets

Loss on disposal of intangible assets

Loss on exchange of non-monetary assets

External donations 946500 845060 946500

Overdue fine payment 911324 468430 911324

Others 22928226 942739 22928226

Total 24786050 2256229 24786050

Other description:

None

76. Income tax expenses

(1). Table of income tax expenses

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Current income tax expenses 134405256 132228250

Deferred income tax expenses 23079227 6384790

Total 157484483 138613040

(2). Accounting profit and income tax expenses adjustment process

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period

Total profits 937429252

The income tax expenses calculated based on statutory/applicable tax rates 140614388

Influences caused by different tax rates adopted by subsidiaries 107096415

Influences caused by adjustment on income tax of previous periods 14189450

Influences on non-taxable income

Influences caused by non-deductible cost expenses and losses 18036826

Influences caused by non-confirmation of deductible losses of deferred income tax assets -28466542

Influences caused by non-confirmation of deductible temporary differences or deductible losses

6911324

in current period

Profit or loss attributable to joint ventures and associates -5808340

Tax-free income -39515295

Additional deduction of technological development expenses -55573743

Income tax expenses 157484483

Other description:

Applicable √ Not applicableSection X Financial Report

77. Other comprehensive income

√ Applicable Not applicable

See Note VII (57) for details.

78. Cash flow statement items

(1). Cash related to operating activities

Other cash received related to operating activities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Other cash received related to operating activities

Customs deposit recovered 218320851 486274294

Cash received from government subsidies and rewards 129539412 148812282

Cash received from the revenue from fines 26216701 14192396

Employee loan recovered 2735462 1146162

Others 142559730 26533441

Total 519372156 676958575

Description of other cash received related to operating activities:

None

Other cash paid related to operating activities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Other cash paid related to operating activities

Customs deposit paid 377102560 350474800

Expenditures on selling and distribution expenses general

and administrative expenses and research and development 209046699 266807164

expenses

Financial expenses and handling charges 26126007 52173270

Subsidy for research and development paid to cooperative units 2740400 4683000

Others 64419308 82883957

Total 679434974 757022191

Description of other cash paid related to operating activities:

None

(2). Cash related to investment activities

Cash received related to important investment activities

Applicable √ Not applicable

Cash paid related to important investment activities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Cash paid for purchase of fixed assets constructions in progress

and intangible assets 1061984214 746956678

Total 1061984214 746956678ANNUAL REPORT 2024

Explanation of cash paid related to important investment activities

None

Other cash received related to investing activities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Interest income 232413226 114994970

Total 232413226 114994970

Description of other cash received related to investing activities:

None

Other cash paid related to investing activities

Applicable √ Not applicable

(3). Cash relating to financing activities

Other cash received relating to financing activities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Other cash received relating to financing activities

Payments received from asset-backed securities business 1897394119 1015336873

Loans received from related parties 40000000 114035638

Leaseback payments received 5024616 4945820

Total 1942418735 1134318331

Description of other cash received related to financing activities:

None

Other cash paid related to financing activities

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Other cash paid related to financing activities

Purchase of minority shareholders’ equity 1005641953 -

Minority shareholder disinvestment 46710558 -

Repayment of collections from asset-backed securities business 2035828278 1366650466

Third-party loan repaid 149318445 153990350

Related-party loan repaid 114035638 97675112

Others 33619042 19949071

Total 3385153914 1638264999

Description of other cash paid related to financing activities:

None

Changes in various liabilities arising from financing activities

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Increase in current period Decrease in current period

December 31 December 31

Item

2023 Non-cash Non-cash Cash changes Cash changes 2024

changes changes

Long-term loans (including long-term

235848102711277680959612006418577127783324353923457

loans due within one year)

Long-term payables - leaseback financing

(including long-term payables due within 1450784119 26741711 149318445 1328207385

one year - leaseback financing)

Lease liabilities (including lease liabilities

6152911087376793361904236647747

due within one year)

Other payables (asset-backed securities

25978678318973941192035828278121352624

business funds)

Other payables (minority shareholders’

11403563840000000114035638-40000000

loans)

Short-term borrowings 4781640779 3167890000 5640840000 11356322 2297334457

Total 30252586700 17882093715 35479390 19980059980 12634155 28177465670

(4). Explanation of cash flows presented on a net basis

Applicable √ Not applicable

(5). Major activities and financial impacts that do not involve current cash receipts and payments but affect the Company’s

financial position or may affect the Company’s cash flows in the future

√ Applicable Not applicable

In 2024 the Group’s endorsement transfer of bank acceptance bill received from sales of goods and rendering of services

for the purchase of goods and the receipt of services was RMB 5784477500 (2023: RMB 2008953329).

79. Further information on cash flow statement

(1). Further information on cash flow statement

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Further information 2024 2023

1. Reconciliation from net profits to cash flows from operating activities:

Net profit 779944769 646544629

Plus: provision for impairment of assets 200815539 428844200

Credit impairment loss 418414816 276310095

Depreciation of fixed assets oil and gas assets and productive biological assets 1379488320 1253746150

Amortization of right-of-use assets 30046209 16568626

Amortization of intangible assets 99542830 98317214

Amortization of long-term deferred expenses

Loss on disposal of fixed assets intangible assets and other long-term assets (gains expressed

-106961574-79038662

with “-”)

Share payment expenses 12144098

Loss on retirement of fixed assets (gains expressed with “-”)

Loss on changes in fair value (gains expressed with “-”) -13425987 27339814

Non-operating income -1914106

Financial expenses (gains expressed with “-”) 471666124 541719273

Investment losses (gains expressed with “-”) -136763924 -199850512

Decrease of deferred income tax assets (increase expressed with “-”) 18844863 -25757445

Increase of deferred tax liabilities (decrease expressed with “-”) 4234364 32142235

Decrease of inventory (increase expressed with “-”) -361372013 -3137886056ANNUAL REPORT 2024

Further information 2024 2023

Decrease/(increase) in construction contract amount -1593129626 659138239

Operating receivables (increase expressed with “-”) 681297942 -1126815296

Increase of operating payables (decrease expressed with “-”) 3384701782 5763954705

Increase in special reserve 8304452 8907237

Others

Net cash flows from operating activities 5275878878 5184184446

2. Significant investment and financing activities not involving cash deposit and withdrawal:

Conversion of debt into capital

Convertible bonds due within one year

Fixed assets under financing lease

3. Net changes in cash and cash equivalents:

Ending balance of cash 5823175948 5032169905

Less: Beginning balance of cash 5032169905 2375101437

Plus: Ending balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase of cash and cash equivalents 791006043 2657068468

(2). Net cash paid to acquire subsidiaries in current period

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Amount

Cash or cash equivalents paid for business combinations in the current period 1188790

Less: cash and cash equivalents held by the subsidiary on the date of acquisition 13210971

Add: cash or cash equivalents paid for business combinations in previous periods but were paid

in the current period

Net cash from purchase of subsidiaries -12022181

Other description:

None

(3). Net cash received from disposal of subsidiaries in current period

Applicable √ Not applicable

(4). Composition of cash and cash equivalents

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item December 31 2024 December 31 2023

I. Cash 5823175948 5032169905

Including: cash on hand 266397 494809

Bank deposit readily available for payment 5822909551 5031675096

Other monetary capital readily available for payment

Deposits with central bank available for payment

Deposits in other banks

Borrowings from other banks

II. Cash equivalents

Including: bond investment due within three months

III. Balance of cash and cash equivalents at the end of period 5823175948 5032169905

Including: restricted cash and cash equivalents of parent company or

subsidiaries within the GroupSection X Financial Report

(5). Situations where the scope of use is limited but still presented as cash and cash equivalents

Applicable √ Not applicable

(6). Monetary fund not classified into cash and cash equivalents

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item 2024 2023 Reason

Guarantee and L/C deposit 33571450 30848391 Margin

Judicial frozen funds 10041923 30861000 Capital frozen

Funds in overseas regulatory accounts 37891 11199140 Restricted use

Total 43651264 72908531 /

Other description:

√ Applicable Not applicable

Supplier finance arrangements

The Group conducts the reverse factoring businesses through three supply chain financial service platforms i.e. CCB

Supply Chain Finance CCCC E-Credit CloudChain. The original creditor (the Group’s supplier) may launch an application

through the platform and provides information on receivables and trade background. After review by the platform

an electronic debt voucher is generated and submitted to the Group for confirmation. The Group’s obligation to make

payment under such electronic debt voucher is unconditional and irrevocable and is not affected by any commercial

dispute among the parties involved in the transfer of such voucher. The Group does not assert offset or defense against

such payment obligation. The Group will transfer the amount equivalent to the electronic debt voucher on the payment

date in accordance with the business rules of the platform.Information on financial liabilities related to supplier financing is as follows:

20242023

Including: amount received Comparable maturity range Carrying

Carrying amount Maturity range

by the supplier of accounts payable amount

Accounts payable 325658140 175-186 175-186 514359647

80. Notes to items in statement of owner's equity

State the name of "other" items and the amount of adjustment to the ending balance of previous year:

Applicable √ Not applicable

81. Foreign currency monetary items

(1). Foreign currency monetary items

√ Applicable Not applicable

Unit: Yuan

Item Ending foreign currency balance Conversion exchange rate Ending balance converted into RMB

Monetary funds - -

Including: USD 402070559 7.1884 2890244006

EUR 65642145 7.5257 494003091

SGD 19089564 5.3214 101583206

INR 348227005 0.0853 29703764

ZAR 65969121 0.3844 25358530

HKD 21439053 0.9260 19852563

AUD 3153189 4.5070 14211423

KRW 1236600792 0.0049 6059344

RUB 89515896 0.0661 5917001ANNUAL REPORT 2024

Item Ending foreign currency balance Conversion exchange rate Ending balance converted into RMB

MOP 4688378 0.8985 4212508

AED 1142656 1.9711 2252289

LKR 60193472 0.0249 1498817

GBP 145238 9.0765 1318253

BRL 391114 1.1799 461475

SAR 238182 1.9284 459310

COP 144254753 0.0017 245233

GHS 374354 0.4964 185829

JPY 99016 0.0462 4575

SEK 4607 0.6553 3019

KES 23372 0.0564 1318

CAD 52 5.0498 263

NZD 5 4.0955 20

MYR - 1.6199 -

Accounts receivable - -

Including: USD 1207295728 7.1884 8678524611

EUR 124585075 7.5257 937589899

SGD 33867255 5.3214 180221211

MOP 165251823 0.8985 148478763

AED 50160284 1.9711 98870936

GBP 10790420 9.0765 97939247

INR 479890109 0.0853 40934626

KRW 6764415093 0.0049 33145634

LKR 1192685590 0.0249 29697871

CAD 4842537 5.0498 24453843

QAR 11629784 1.9284 22426875

AUD 3476651 4.5070 15669266

ZAR 36118742 0.3844 13884044

SAR 6132462 1.9284 11825840

RUB 172606781 0.0661 11409308

MYR 3324265 1.6199 5384977

HKD 5169049 0.9260 4786539

BRL 1500682 1.1799 1770655

Other receivables - -

Including: USD 10996534 7.1884 79047484

RUB 239465746 0.0661 15828686

INR 68824455 0.0853 5870726

SGD 708614 5.3214 3770819

ZAR 7985970 0.3844 3069807

KRW 297569592 0.0049 1458091

LKR 43935100 0.0249 1093984

AUD 155190 4.5070 699443

HKD 645817 0.9260 598027

BRL 93227 1.1799 109999

OMR 4829 18.9570 91546

EUR - 7.5257 -

Accounts payable

Including: USD 257772938 7.1884 1852974988

EUR 107715697 7.5257 810636021

SGD 11675129 5.3214 62128031Section X Financial Report

Item Ending foreign currency balance Conversion exchange rate Ending balance converted into RMB

INR 408791344 0.0853 34869902

GBP 3508731 9.0765 31846997

RUB 399665096 0.0661 26417863

AUD 4897250 4.5070 22071906

KRW 3202412179 0.0049 15691820

LKR 620363277 0.0249 15447046

JPY 309265511 0.0462 14288067

ZAR 13952609 0.3844 5363383

CAD 92972 5.0498 469490

HKD 270640 0.9260 250613

BRL 160661 1.1799 189564

NZD 31309 4.0955 128225

Other payables

Including: USD 17265708 7.1884 124112815

SGD 7007126 5.3214 37287720

KRW 3189282000 0.0049 15627482

EUR 1369105 7.5257 10303473

LKR 37463392 0.0249 932838

GBP 69361 9.0765 629555

BRL 296666 1.1799 350036

INR 2523806 0.0853 215281

ZAR 312513 0.3844 120130

HKD 15261 0.9260 14131

RUB 139748 0.0661 9237

Long-term payables due within one

year

Including: USD 22016021 7.1884 158259965

Long-term payables

Including: USD 163368837 7.1884 1174360550

Other description:

None

(2) Description of overseas business entities including the disclosure of main overseas business locations recording

currency and selection basis for important overseas business entities as well as the reasons for changes in recording

currency

Applicable √ Not applicable

82. Lease

(1) As a lessee

√ Applicable Not applicable

20242023

Interest expense of lease liabilities 1924958 1313980

Short-term lease expenses with simplified treatment included in the current profit or loss 223116372 217888742

Total cash outflows related to leases 286559845 259695514

Cash outflow from leaseback 157310318 249669758

The leased assets leased by the Group include buildings and constructions machinery and equipment transportation

equipment and other equipment used in the course of operations and the lease term is usually 1-3 years. The lease

contract usually stipulates that the Group cannot sublet the leased assets. A few lease contracts include the option of

renewal.ANNUAL REPORT 2024

Leaseback

The Group usually enters into leaseback transactions for the purchase price of large ships or equipment where the

transfer of the assets is not a sale. The Group continues to recognize the transferred assets together with a financial

liability equal to the transfer income. The Group takes such leaseback transactions as mortgage loans for accounting

treatment. The Group makes annual leaseback financing payments to the finance leasing company in accordance with

the terms of the contract.Other lease information

Right-of-use assets are detailed in Note VII (25). The simplified treatment of short-term lease and low-value assets lease is

detailed in Note V (34). The lease liabilities are detailed in Note VII (47).Variable lease payments not included in the measurement of lease liabilities

Applicable √ Not applicable

Simplified short-term leases or lease expenses of low-value assets

Applicable √ Not applicable

Leaseback transactions and judgment basis

Applicable √ Not applicable

Total cash outflows related to leases was 286559845 (Unit: Yuan Currency: CNY)

(2) As a lessor

Operating lease as the lessor

Applicable √ Not applicable

Financing lease as the lessor

Applicable √ Not applicable

Reconciliation of undiscounted lease receipts and net lease investment

Applicable √ Not applicable

Undiscounted lease receipts for the next five years

Applicable √ Not applicable

Other description:

Operating lease

The profit or loss related to operating leases is presented as follows:

20242023

Lease income 384134037 296335872

According to the lease agreement signed with the lessee the undiscounted minimum lease receipts are as follows:

20242023

Within 1 year (including 1 year) 417480850 291022650

1 to 2 years (including 2 years) 291092371 222198493

2-3 years (including 3 years) 233509892 113076268

3 to 4 years (including 4 years) 137080479 105432422

4 to 5 years (including 5 years) 110913100 55144117

Over 5 years 127300221 54066921

Total 1317376913 840940871

(3) Recognize the profit or loss of financing lease sales as a manufacturer or distributor

Applicable √ Not applicable

Other description:

NoneSection X Financial Report

83. Data resources

Applicable √ Not applicable

84. Others

Applicable √ Not applicable

VIII. R&D expenses

1. Presented by nature of expense

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Item Amount incurred in the current period Amount incurred in the previous period

Employee compensation 679993523 616931085

Materials expenses 442521920 394464827

Processing expenses 213863366 172861680

Depreciation and amortization 87025975 94644503

Product design expenses 1673459 2497150

Others 77319101 30157420

Total 1502397344 1311556665

Including: Expensed R&D expenditure 1502397344 1311556665

Capitalized R&D expenditure

Other description:

For the year 2024 none of the above research and development expenditures were capitalized.

2. Development expenditures of R&D projects that meet capitalization conditions

Applicable √ Not applicable

Significant capitalized R&D projects

Applicable √ Not applicable

Provision for development expenditure impairment

Applicable √ Not applicable

Other description:

None

3. Significant outsourced research projects

Applicable √ Not applicable

IX. Changes in consolidation scope

1. Business combination not under common control

√ Applicable Not applicableANNUAL REPORT 2024

(1) Business Combinations Not Under Common Control Recognized During the Reporting Period

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Revenue of Net profit of

Basis for the acquiree the acquiree

Cash flows of

the acquiree

Name of the Date of Cost of

Proportion

of equity Method determining

from the from the from the

acquiree equity equity of equity

Acquisition the date of date of date of

acquisition acquisition acquired (%) acquisition

date acquisition acquisition acquisition

date to the to the

acquisition

end of the end of the to the end of

period period the period

Purchase

ZPMC SoutheastAsia February of minority February Tr a n s f e r o f

Holding Pte. Ltd. 29 2024 5325984 30 shareholders’ 29 2024 control 91991375 5426552 -2292296

equity

Other description:

None

(2) Merger cost and goodwill

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Merger cost ZPMC SoutheastAsia Holding Pte. Ltd.- Cash 1188790

--Fair value of non-cash assets 4137194

--Fair value of debt issued or assumed

--Fair value of equity securities issued

--Fair value of contingent consideration

--Fair value of equity held prior to the date of acquisition on the date of acquisition

- Others

Total merger cost 5325984

Less: share of fair value of identifiable net assets acquired 7240090

Amount of goodwill/ merger cost less than the share of fair value of identifiable net assets acquired -1914106

Method of determining the fair value of merger cost:

Applicable √ Not applicable

Fulfillment of commitments on the business performance:

Applicable √ Not applicable

Main reasons for the formation of significant goodwill:

Applicable √ Not applicable

Other description:

None

(3) Identifiable assets and liabilities of the acquiree as of the date of acquisition

√ Applicable Not applicable

Unit: Yuan Currency: CNY

ZPMC SoutheastAsia Holding Pte. Ltd.Fair value at acquisition date Book value at acquisition date

Assets: 66312104 66312104

Monetary funds 13210971 13210971

Receivables 51596992 51596992

Inventories 1485511 1485511Section X Financial Report

ZPMC SoutheastAsia Holding Pte. Ltd.Fair value at acquisition date Book value at acquisition date

Fixed assets 18630 18630

Intangible assets

Liabilities: -55969119 -55969119

Borrowings

Payables -55969119 -55969119

Deferred income tax liabilities

Net assets 10342985 10342985

Less: minority equity

Net assets acquired

Method of determining the fair value of identifiable assets and liabilities: None

Contingent liabilities of the acquiree assumed in the business combination: None

Other description: None

(4) Gain or loss from re-measurement of equity held prior to the date of acquisition at fair value

Whether there are any transactions during the reporting period in which control was obtained through a business

combination achieved in stages via multiple-step acquisitions

Applicable √ Not applicable

(5) Explanations about failure to reasonably determine the merger consideration or the fair value of identifiable assets

and liabilities of the acquiree as of the date of acquisition or the end of the merger period

Applicable √ Not applicable

(6) Other description

Applicable √ Not applicable

2. Business combination under common control

Applicable √ Not applicable

3. Counter purchase

Applicable √ Not applicable

4. Disposal of subsidiaries

Whether there are transactions or events leading to loss of control over subsidiaries in the current period

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

Whether the control of subsidiary’s investment is lost in the current period in step-to-step disposal through multiple

transactions

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

5. Changes in consolidation scope due to other reasons

Description of the changes (such as new subsidiary liquidation of subsidiary) in consolidation scope due to other reasons

and relevant information:

Applicable √ Not applicableANNUAL REPORT 2024

6. Others

Applicable √ Not applicable

X. Interests in other entities

1. Interests in subsidiaries

(1) Subsidiaries of the Group

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Subsidary Name Principal place Registered Registration place Business

Shareholding ratio (%) Acquisition

of business capital nature Direct Indirect mode

Nantong Zhenhua Heavy Nantong City Nantong City Machine Establishment by

Equipment Manufacturing Co. Ltd. Jiangsu Province Jiangsu Province manufacturing 100.00% 0.00% investing

ZPMC Transmission Machinery

(Nantong) Co. Ltd. Jiangsu Province Jiangsu Province

Machine

manufacturing 100.00% 0.00%

Establishment by

investing

Shanghai Zhenhua Heavy Business

Industries Port Machinery General Chongming Chongming Machine 100.00% 0.00% combination

Equipment Co. Ltd. Shanghai Shanghai manufacturing under common control

CCCC Liyang Urban Investment and Liyang City Liyang City Jiangsu Engineering Establishment by

Construction Co. Ltd. (Remark 1) Jiangsu Province Province construction 48.00% 0.00% investing

The shareholding ratio in subsidiaries is different from the proportion of voting rights: None

The basis for holding half or less of the voting rights but still controlling the invested entity and the basis for holding

more than half of the voting rights but not controlling the invested entity:

None

The basis for control of the important structured entities included in the consolidation scope: None

Basis for determining whether the Company is an agent or a principal: None

Other description:

Remark 1: By signing the agreement for concerted action with CCCC Shanghai Dredging Co. Ltd. and CCCC East China

Investment Co. Ltd. the Group had obtained 76% voting power in the board of shareholder and 71% voting power in the

board of directors of this company. In accordance with the regulations of the articles of association of such company the

Group had obtained the control rights thereof thus such company was included in the Groups’ consolidation scope. The

articles of association of the Company stipulate that Jiangsu Sukong Urban Investment and Construction Co. Ltd. one of

such company’s shareholders does not participate in dividends and its shareholding ratio is 20%.

(2) Major non-wholly-owned subsidiaries

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Profit or loss Dividends Balance of

Shareholding

Capital invested/ attributable to declared minority

ratio of minority

Name of subsidiary (withdrawn) by the minority to minority shareholders'

shareholder

minority shareholders shareholder in shareholders in equity at the end

Proportion

current period current period of the period

Greenland Heavylift (Hongkong) Limited 50.00% 100520685 549037109

CCCC Investment & Development Qidong

50.42%70798224826196420944438

Co. Ltd.CCCC L i y a n g U r b a n I nve s t m e n t a n d

52.00%17089294375610959

Construction Co. Ltd.CCCC Rudong Construction Development

33.50%6909298203970088

Co. Ltd.Section X Financial Report

Description of the difference between the shareholding ratio of minority shareholders and the proportion of voting right ratio in subsidiaries:

Applicable √ Not applicable

Other description:

Applicable √ Not applicable

(3) Main financial information of major non-wholly-owned subsidiaries

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024 December 31 2023

Name of subsidiary

Current assets Non-current assets Total assets

Current Non-current

liabilities liabilities Total liabilities Current assets

Non-current

assets Total assets

Current Non-current

liabilities liabilities Total liabilities

Greenland Heavylift

(Hong Kong) Limited 206779915 2418262487 2625042402 -339210936 -1174360550 -1513571486 201642709 2447207803 2648850512 -444563092 -1307103738 -1751666830

CCCC I nvestment &

Development Qidong 447631306 829935643 1277566949 -120976077 -321011959 -441988036 414930180 1203059220 1617989400 -271280573 -560061964 -831342537

Co. Ltd.CCCC L iyang Urban

I n v e s t m e n t a n d 1061100769 76234920 1137335689 -225761183 -2547110 -228308293 268591322 1154852390 1423443712 -437108646 -120030905 -557139551

Construction Co. Ltd.C C C C R u d o n g

C o n s t r u c t i o n 196702360 1122414225 1319116585 -263463831 -390987314 -654451145 138704975 1536377693 1675082668 -548572968 -482469030 -1031041998

Development Co. Ltd.Amount incurred in the current period Amount incurred in the previous period

Name of subsidiary Operating Total Total

revenue Net profit comprehensive

Cash flows from Operating revenue Net profit comprehensive Cash flows from

income operating activities income operating activities

Greenland Heavylift (Hong Kong) Limited 742478465 212288745 222425649 489796961 511168763 48199340 72890721 287224364

CCCC Investment & Development Qidong Co. Ltd. 4107471 48932050 48932050 474079714 121670862 35072519 35072519 154742174

CCCC Liyang Urban Investment and Construction Co. Ltd. 636641 42723235 42723235 149962165 66685288 57787436 57787436 317797133

CCCC Rudong Construction Development Co. Ltd. 17215638 20624770 20624770 233544119 220611556 25678959 25678959 -3816123

Other description: None

(4) Major restrictions on the use of assets of enterprise group and the repayment of debts of enterprise group

Applicable √ Not applicable

(5) Financial support or other supports provided to structured entities included in the scope of consolidated financial statements

Applicable √ Not applicableANNUAL REPORT 2024

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

(1). Explanation of changes in the share of the owner's equity of subsidiary

√ Applicable Not applicable

In September 2024 the Company acquired 49.25% of the equity held by minority shareholders of its subsidiary ZPMC

Transmission Machinery (Nantong) at the consideration of RMB 1000000000. After the acquisition the Company held

100% of the equity in ZPMC Transmission Machinery (Nantong). This transaction led to a decrease in minority interests of

RMB 815066755 and an increase in capital reserve of RMB 184933245 in the consolidated financial statements.In 2024 the Company acquired 30% of the equity held by minority shareholders of its subsidiary ZPMC Engineering

(Malaysia) Sdn. Bhd at the consideration of MYR 3498000. After the acquisition the Company held 100% of the equity

in ZPMC Engineering (Malaysia) Sdn. Bhd. This transaction led to a decrease in minority interests of RMB 5027009 and an

increase in capital reserve of RMB 614944 in the consolidated financial statements.

(2). Effect of the transaction on minority interests and attributable to owners' equity of the parent company

Applicable √ Not applicable

3. Equity in joint ventures and associates

√ Applicable Not applicable

(1) Major joint ventures or associates

√ Applicable Not applicable

Name of joint venture or associate Principal place

Shareholding ratio (%)

of business Registration place Business nature

Accounting

Direct Indirect treatment

Joint ventures

J i a n g s u L o n g y u a n Z h e n h u a M a r i n e

Engineering Co. Ltd Jiangsu Nantong Jiangsu

Marine engineering

construction 50.00% - Equity method

ZPMC Mediterranean Liman Makinalari Ticaret Technical service for

Anonim Sirketi Istanbul Turkey Istanbul Turkey port equipment 50.00% - Equity method

Zhenhua Marine Energy (HK) Co. Ltd. Hong Kong Hong Kong Marine transport - 51.00% Equity method

ZOSG-OTL Marine Contractor Limited (formerly

known as: ZPMC-OTL Marine Contractor Hong Kong Hong Kong Marine transport - 50.00% Equity method

Limited)

Associated company

CCCC Marine Engineering & Technology Marine technology

Research Center Co. Ltd. Shanghai Pudong New Area development and 25.00% - Equity methodconsulting

CCCC Estate Yixing Co. Ltd. Jiangsu Wuxi Jiangsu Real estate development 20.00% - Equity method

ZPMC Changzhou Coatings Co. Ltd. Jiangsu Changzhou Jiangsu Paint manufacture 20.00% - Equity method

CCCC Financial Leasing Co. Ltd. Shanghai Pudong New Area Shanghai Finance lease 5.82% - Equity method

CCCC Yancheng Construction Development Jiangsu Yancheng Jiangsu Engineering project Co. Ltd. construction 25.00% - Equity method

Port channel

China Communications Construction USA Inc. USA USA highway and bridge 24.00% Equity method

construction

Shanghai Xingyi Construction Technology Co.Ltd. Shanghai Shanghai Building engineering - 30.00% Equity method

C C C C X i o n g a n U r b a n C o n s t r u c t i o n Hebei Xiongan Hebei Engineering project Development Co. Ltd. construction 15.00% Equity methodSection X Financial Report

Description of the difference between shareholding ratio and proportion of voting rights in joint venture or associates:

None

Basis for holding less than 20% of voting rights but having significant influence or holding 20% or more of voting rights

but not having significant influence:

None

(2) Main financial information of major joint ventures:

Applicable √ Not applicable

(3) Main financial information of major associates:

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024/Amount incurred in December 31 2023/Amount incurred

the current period in the previous period

CCCC Financial CCCC Financial CCCC Financial CCCC Financial

Leasing Co. Ltd. Leasing Co. Ltd. Leasing Co. Ltd. Leasing Co. Ltd.Current assets 35222090045 29354696299

Non-current assets 32482617238 29259294679

Total assets 67704707283 58613990978

Current liabilities -27518659535 -26934433997

Non-current liabilities -24049807860 -16966741711

Total liabilities -51568467395 -43901175708

Minority equity 3740413338 3326313271

Other equity instrument - Perpetual bond 1000000000 1000000000

Adjustment: Subscribed capital contributions not yet paid by

-301476593

other shareholders

Shareholders’ equity attributable the parent company 11395826550 10386501999

Share of net assets held based on shareholding ratio 661178256 622040353

Adjustments

- Goodwill

- Unrealized profits of internal transactions

- Others

Book value of equity investment in associates 661178256 622040353

Fair value of equity investment in associates with public offer

Operating revenue 4089094301 3988743327

Financial expenses-interest income 18720184 23247316

Financial expenses - interest expenses 1308000 10869873

Income tax expenses 454780922 410890621

Net profit 1346380151 1209298301

Net profit from discontinuing operation

Net of tax of other comprehensive income -4081897 -6312624

Other comprehensive income

Total comprehensive income 1342298254 1202985677

Total comprehensive income attributable to the parent company 928198186 893298879

Dividends distributed 191591692 1159673968

Dividends received from associates this year

Other description:

NoneANNUAL REPORT 2024

(4) Summary of financial information of insignificant joint ventures and associates

√ Applicable Not applicable

Unit: Yuan Currency: CNY

December 31 2024/Amount incurred in December 31 2023/Amount incurred in

the current period the previous period

Joint ventures:

Total book value of investment 368281062 367506947

Total number of following items by shareholding ratio

-- Net profit 1406295 1541994

-- Other comprehensive income

-- Total comprehensive income 1406295 1541994

Associates:

Total book value of investment 737693291 966710322

Total number of following items by shareholding ratio

-- Net profit -16942727 4026422

-- Other comprehensive income 42741 98461

-- Total comprehensive income -16899986 4124883

Other description: None

(5) Description of the significant restrictions on the ability of joint ventures or associates to transfer funds to the Company

Applicable √ Not applicable

(6) Excess loss of joint ventures or associates

Applicable √ Not applicable

(7) Unrecognized commitments related to joint venture investment

Applicable √ Not applicable

(8) Contingent liabilities related to investment in joint ventures or associates

Applicable √ Not applicable

4. Significant joint operation

Applicable √ Not applicable

5. Equity in structured entities not included in the scope of consolidated financial statements

Description of structured entities not included in the scope of consolidated financial statements:

Applicable √ Not applicable

6. Others

Applicable √ Not applicable

XI. Government subsidie

1. Governmental subsidy not recognized by amount receivable by the end of reporting period

Applicable √ Not applicable

Reasons for failure to receive the estimated amount of governmental subsidy at the estimated time

Applicable √ Not applicable

2. Liabilities revolving governmental subsidies

√ Applicable Not applicableSection X Financial Report

Unit: Yuan Currency: CNY

Amount included Amount

Financial December 31 New subsidy amount in current in non-operating included in Other December 31 Assets related / Statement Item 2023 period income in current other income in changes 2024 income relatedperiod current period

Deferred income 336137781 17255200 -43748097 309644884

Total 336137781 17255200 -43748097 309644884

3. Government subsidy recognized in current losses and gains

√ Applicable Not applicable

Unit: Yuan Currency: CNY

Type Amount incurred in the current period Amount incurred in the previous period

Income related 154291909 107480822

Other description:

The Group had no government subsidies returned during the current year.XII. Risks related to financial instruments

1. Financial instrument risks

√ Applicable Not applicable

Classification of financial instruments

The book values of various financial instruments on the balance sheet date:

2024

Financial assets

Financial assets measured Financial assets measured at

at fair value through the Financial assets fair value through the other

current profit or loss measured at comprehensive income Total

amortized cost

Standard Designated Standard Designated

Monetary funds - - 5866827212 - - 5866827212

Held-for-trading financial assets 534200582 - - - - 534200582

Derivative financial instruments 8438278 - - - - 8438278

Notes receivable - - 50000000 - - 50000000

Receivables financing - - - 650260884 - 650260884

Accounts receivable - - 7365793461 - - 7365793461

Other receivables - 780170637 - - 780170637

Non-current assets due within one year - - 1346060900 - - 1346060900

Other equity instrument investment - - - - 190530888 190530888

Long-term receivables - - 1081258063 - - 1081258063

Total 542638860 - 16490110273 650260884 190530888 17873540905

Financial liabilities

Financial liabilities measured at fair value

through the current profit or loss Financial liabilities measured

at amortized cost Total

Standard Designated

Short-term borrowings - - 2297334457 2297334457

Notes payable - - 4584675393 4584675393

Accounts payable - - 10603482116 10603482116

Other payables - - 890050528 890050528

Non-current liabilities due within one year - - 6717754646 6717754646

Long-term borrowings - - 17785704495 17785704495ANNUAL REPORT 2024

Financial liabilities measured at fair value

through the current profit or loss Financial liabilities measured

at amortized cost Total

Standard Designated

Long-term payables - - 1717210910 1717210910

Total - - 44596212545 44596212545

2023

Financial assets

Financial assets measured at Financial assets measured at

fair value through the current Financial assets fair value through the other

profit or loss measured at comprehensive income Total

amortized cost

Standard Designated Standard Designated

Monetary funds - - 5105078436 - - 5105078436

Held-for-trading financial assets 712156397 - - - - 712156397

Derivative financial instruments 8438278 - - - - 8438278

Notes receivable - - 14122031 - - 14122031

Receivables financing - - - 965569122 - 965569122

Accounts receivable - - 7266298102 - - 7266298102

Other receivables - - 1245727441 - - 1245727441

Non-current assets due within one year - - 1341408631 - - 1341408631

Other equity instrument investment - - - - 104859374 104859374

Long-term receivables - - 1457182459 - - 1457182459

Total 720594675 - 16429817100 965569122 104859374 18220840271

Financial liabilities

Financial liabilities measured at fair value

through the current profit or loss Financial liabilities measured

at amortized cost Total

Standard Designated

Short-term borrowings - - 4781640779 4781640779

Notes payable - - 5533470582 5533470582

Accounts payable - - 8616059138 8616059138

Other payables - - 1006412820 1006412820

Non-current liabilities due within one year - - 8620719463 8620719463

Long-term borrowings - - 15105224079 15105224079

Long-term payables - - 1744502983 1744502983

Total - - 45408029844 45408029844

Financial instrument risks

Various financial instrument risks the Group faces during the routine activities mainly include the credit risk liquidity risk

and market risk.The Group’s overall risk management plan is targeted at the unpredictability of financial market trying to minimize the

potential adverse influence on the Group’s financial results.Credit risk

The Group only trade with the authorized third parties and related parties in good standing. Credit risks are managed in

a centralized manner by customer/counterpart geographic region and industry. As the Group’s customers of accounts

receivable contract assets and long-term receivables are widely dispersed across sectors and industries there is no

significant credit risk concentration within the Group. The Group holds collateral or other credit enhancements for the

balance of some accounts receivable other receivables and long-term receivables.As the counterparts of monetary funds receivables financing and derivative financial instruments are banks in good

standing and having relatively higher credit rating these financial instruments have low credit risk.Other financial assets of the Group include commercial acceptance bill accounts receivable other receivables and long-

term receivables the credit risks of these financial assets and contract assets are from the counterpart’s default and the

maximum exposure is equal to the book amount of these instruments.Section X Financial Report

The Group has set relevant policies to control the credit risk exposure. The Group based on the customers' financial

positions the possibility of obtaining guarantees from the third party credit records and other factors such as the current

market conditions evaluates the credit qualifications of customers and set the credit period accordingly. The Group will

monitor customers’ credit records periodically; as for the customers with bad credit records the Group will take measures

such as requesting a payment in writing shortening the credit period or canceling the credit term to ensure that the

Group's overall credit risks are within the controllable scope.Judgment criteria for significant increase in credit risk

On each balance sheet date the Group will evaluate the credit risks of relevant financial instruments to confirm whether

they have had significant increase or not after the initial recognition. The main criteria for the Group to judge a significant

increase in credit risk are significant changes in one or more of the following indicators: Significant adverse changes in the

debtor’s operating environment internal and external credit ratings actual or expected operating results etc.Definition of assets with credit impairment

The main criteria for the Group to judge that credit impairment has occurred is that in certain circumstances if internal

or external information shows that the contract amount may not be fully recovered before considering any credit

enhancement held the Group will also regard it as credit impairment.The credit impairment of financial assets may be caused by several events not just one event which can be individually

identified.Parameters for the measurement of expected credit loss

Based on the information whether the credit risk has had significant increase or there is credit impairment the Group

makes the provision for impairment of expected credit losses of various assets for 12 months or the entire duration.Key parameters for the measurements of expected credit loss include the probability of default loss given default

and exposure at default. Considering the quantitative analysis on historical statistical data (including the rating of the

counterpart way of guarantee and category of collateral) and prospective information the Group builds models for

probability of default loss given default and exposure at default.Relevant definitions:

(1) The probability of default refers to the possibility that the debtor will not be able to fulfill its payment obligation in the

next 12 months or the whole remaining duration. The Group’s probability of default is adjusted based on the credit loss

model adding the prospective information to reflect the debtor's probability of default in the current macroeconomic

environment;

(2) The loss given default refers to the expectation made by the Group regarding the degree of loss on default risk

exposure. As the type of counterpart way of recourse and priority as well as collateral may be different the loss given

default may also be different. The loss given default refers to the percentage of the risk exposure loss at default calculated

based on the term over the next 12 months or the entire duration;

(3) The exposure at default refers to the amount paid by the Group at default over the next 12 months or the entire

remaining duration.The prospective information is involved in the evaluation on significant change in credit risk and the calculation of

expected credit loss. Through the historical data analysis the Group identifies the key economic indicators affecting the

credit risks in various types of business and the expected credit loss.The impact of these economic indicators on the probability of default and the loss given default is different for different

type of business. In such course the Group makes the reference to the authoritative predictive values expect these

economic indicators based on results of those values and determine the impact of these economic indicators on the

probability of default and the loss given default.The maximum risk exposure and the year-end classification of credit risk degrees regarding the Group’s financial assets

and contract assets are as follows:ANNUAL REPORT 2024

2024

Expected credit loss over the

next 12 months Expected Expected credit loss for the entire duration

credit loss in the entire lifecycle Total

Stage I Stage II Stage III Simple method

Monetary funds 5866827212 - - - 5866827212

Held-for-trading financial assets 534200582 - - - 534200582

Derivative financial instruments 8438278 - - - 8438278

Notes receivable - - - 50000000 50000000

Accounts receivable - - - 7365793461 7365793461

Contract assets - - - 3897647216 3897647216

Receivables financing 650260884 - - - 650260884

Other receivables 776028943 4141694 - - 780170637

Non-current assets due within one year 1346060900 - - - 1346060900

Other non-current assets - - - 4808691840 4808691840

Long-term receivables 1081258063 - - - 1081258063

Total 10263074862 4141694 - 16122132517 26389349073

2023

Expected credit loss over the

next 12 months Expected Expected credit loss for the entire duration

credit loss in the entire lifecycle Total

Stage I Stage II Stage III Simple method

Monetary funds 5105078436 - - - 5105078436

Held-for-trading financial assets 712156397 - - - 712156397

Derivative financial instruments 8438278 - - - 8438278

Notes receivable - - - 14122031 14122031

Accounts receivable - - - 7266298102 7266298102

Contract assets - - - 2779633134 2779633134

Receivables financing 965569122 - - - 965569122

Other receivables 721381756 293580976 230764709 - 1245727441

Non-current assets due within one year 1341408631 - - - 1341408631

Other non-current assets - - - 4924571621 4924571621

Long-term receivables 1457182459 - - - 1457182459

Total 10311215079 293580976 230764709 14984624888 25820185652

Liquidity risk

The Group’s objective is to utilize a diversified mix of financing instruments to maintain an appropriate balance between

the continuity and flexibility of funding. The Group’s operational funding is primarily supported by cash flows generated

from operating activities and borrowings. Subsidiaries within the Group are responsible for their own cash-flow prospects.The financial section of the head office continues to monitor the short-term and long-term capital demands at the group

level after collecting the cash flows prospects of all subsidiaries to guarantee the sufficient cash reserve and cashable

securities. Meanwhile the financial section of the head office continues to monitor the financial and non-financial

indicators prescribed in credit-granting agreements and loan agreements to ensure that the Group can get sufficient line

of credit from major financial institutions so as to satisfy the short-term and long-term capital demands of all subsidiaries

of the Group.As at December 31 2024 the various financial liabilities of the Group are listed as follows by due dates based on

undiscounted contracted cash flows (including principal and interest):Section X Financial Report

2024

2024

Within 1 year 1-2 years 2-5 years Over 5 years Total

Short-term borrowings 2342266624 - - - 2342266624

Notes payable 4584675393 - - - 4584675393

Accounts payable 10603482116 - - - 10603482116

Other payables 890050528 - - - 890050528

Non-current liabilities due within one year 6693097224 - - - 6693097224

Long-term borrowings - 4893471523 11205372091 2046981390 18145825004

Long-term payables - 756277609 658042851 534000816 1948321276

Total 25113571885 5649749132 11863414942 2580982206 45207718165

2023

2023

Within 1 year 1-2 years 2-5 years Over 5 years Total

Short-term borrowings 4810142051 - - - 4810142051

Notes payable 5533470582 - - - 5533470582

Accounts payable 8616059138 - - - 8616059138

Other payables 1006406221 - - - 1006406221

Non-current liabilities due within one year 8607747605 - - - 8607747605

Long-term borrowings - 7315902229 6251686213 2048448061 15616036503

Long-term payables - 775885499 688915129 558677002 2023477630

Total 28573825597 8091787728 6940601342 2607125063 46213339730

Market risk

Interest rate risk

The Group’s interest rate risk is mainly from such long-term interest-bearing liabilities as long-term bank borrowings

and long-term payables. Floating-rate financial liabilities expose the Group to cash flow interest rate risk while fixed-

rate financial liabilities expose the Group to fair value interest rate risk. The Group determines the relative proportion of

contracts with fixed interest rate and contracts with floating interest rate according to the current market environment.As at December 31 2024 the Group’s long-term interest-bearing liabilities mainly were the floating rate contracts priced

in USD and the fixed rate contracts priced in RMB.The market interest rate fluctuating risks that the Group encounters are mainly relevant to the long-term liabilities where

the interest is calculated at the floating interest rate. The Group manages interest rate risk by closely monitoring interest

rate changes and regularly reviewing borrowings.The finance department in the headquarters of the Group continues monitoring and controlling the interest rate level of

the Group. The increase in interest rate will increase the costs of the new interest-bearing debts and the interest expenses

of interest-bearing debts failing to be paid up by the Group and subject to the interest calculation at floating interest rate

and will significantly and adversely affect the Group's financial results; the management will control partial interest rate

risk based on the newest market situation through the swap contract and other interest rate swap arrangements. In 2023

and 2024 the Group had no interest rate swap arrangement.The following table shows the sensitivity analysis of the interest rate risk reflecting the effect of the reasonable and

possible changes in the interest rate on net profit or loss (through the impact on loan with floating interest rate) and the

net amount of other comprehensive income after tax based on the assumption of no change in other variables.

2024

Net of tax of other

Base point Net profit or loss Total shareholders' equity

comprehensive income

Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)

Increase / (Decrease)

RMB 100 (128552784) - (128552784)

RMB (100) 128552784 - 128552784ANNUAL REPORT 2024

2023

Net of tax of other

Base point Net profit or loss Total shareholders' equity

comprehensive income

Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)

Increase / (Decrease)

RMB 100 (76054462) - (76054462)

RMB (100) 76054462 - 76054462

Exchange rate risk

The Group is exposed to transactional exchange rate risk. Such risks are due to sales or purchases made by the operating

entity in currencies other than its functional currency. The Group’s main production is within the territory of China but its

sales and purchase is settled in USD. However there still were foreign exchange risks in the foreign currency assets and

liabilities and future foreign currency transactions that have been recognized by the Group (foreign currency assets and

liabilities and foreign currency transactions are priced mainly in USD). The finance department of the Headquarters of the

Group is responsible for supervising the scale of the Group's foreign currency transactions and foreign currency assets

and liabilities to minimize the foreign exchange risks.The following table is a sensitivity analysis of exchange rate risk reflecting the assumption that all other variables will

remain the same when the USD exchange rate changes reasonably and possibly it will affect the net profit or loss (due to

the change in fair value of monetary assets and liabilities) and other comprehensive income net of tax (due to the change

in fair value of forward foreign exchange contract).

2024

USD exchange rate Net of tax of other

Net profit or loss Total shareholders' equity

Increase / comprehensive income

Increase / (Decrease) Increase / (Decrease)

(Decrease) Increase / (Decrease)

Depreciation of Renminbi against US Dollar 1% 36071737 - 36071737

Appreciation of Renminbi against US Dollar -1% (36071737) - (36071737)

2023

USD exchange rate Net of tax of other

Net profit or loss Total shareholders' equity

Increase / comprehensive income

Increase / (Decrease) Increase / (Decrease)

(Decrease) Increase / (Decrease)

Depreciation of Renminbi against US Dollar 1% 29636924 - 29636924

Appreciation of Renminbi against US Dollar -1% (29636924) - (29636924)

Price risk of equity instrument investment

The price risk of equity instrument investment refers to the risk that the fair value of equity securities decreases due to

the change of stock index level and individual securities value. As at December 31 2024 the Group was exposed to the