Stock Code: 600320 900947 Stock Name: Zhenhua Heavy Zhenhua B-share
Shanghai Zhenhua Heavy Industries Co. Ltd.Annual Report 2025Section I Definitions .............01
Section II Company Profile and Principal Financial...02
Section III Management Discussion and Analysis.......06
Section IV Corporate Governance Environment and So...22
Section V Important Events ..........................40
Section VI Changes in Shares and Shareholders’ Sit...52
Section VII Bonds ...................................58
Section VIII Financial Report .......................65
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
I. The Board of Directors directors and officers 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 unqualified audit report 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
To deliver reasonable returns to shareholders and strengthen their investment confidence a profit distribution plan
for 2025 has been proposed based on the Company’s performance in 2025: to distribute a cash dividend of RMB
0.055 (tax included) per share to all shareholders based on the total share capital registered on the record date for the
implementation of the equity distribution (excluding shares held in the Company’s designated securities repurchase
account). The Company will not convert capital reserve into share capital or grant bonus shares for 2025.As of March 30 2026 the Company’s total share capital was 5268353501 shares. After deducting 11791762 A-shares
held in the Company’s designated securities repurchase account the base for distribution was 5256561739 shares on
which basis the proposed total cash dividend amounts to RMB 289110895.65 (tax included). The total cash dividends for
2025 (including the interim cash dividend already distributed for the first half of 2025) amount to RMB 394348574.43.
Should the Company’s total share capital change prior to the record date for the implementation of the equity
distribution the Company intends to maintain the cash dividend per share unchanged and adjust the total amount of the
distribution accordingly.The proposed profit distribution plan is subject to approval at the Company’s 2025 Annual General Meeting of
Shareholders.Relevant information regarding the parent company’s unrecouped losses as of the end of the reporting period and their
impact on matters such as the Company’s profit distribution
Applicable √ Not applicable
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 Risk Warning
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 applicableSection I Definitions
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 2025 to December 31 2025ANNUAL REPORT 2025
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 Securities Affairs Representative
Name Sun Li Cao Lu
Address No. 3261 Dongfang Road Shanghai No. 3261 Dongfang Road Shanghai
Telephone 021-50390727 021-50390727
Fax 021-31193316 021-31193316
E-mail IR@ZPMC.COM 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 the Room 01-12 Floor 17th Ernst & Young Tower Oriental Plaza No.1 East
Office address
Company (domestic) Changan Street Dongcheng District Beijing
Signed by the Accountants You Fei Huang HongweiSection II Company Profile and Principal Financial Indexes
VII. Main accounting data and financial indexes in recent three years
(I) Main accounting data
Unit: RMB Currency: CNY
Year-on-year
Main accounting data 2025 2024 2023
change (%)
Operating revenue 36260458326 34456420181 5.24 32933263802
Total profits 1116024014 937429252 19.05 785157669
Net profit attributable to the shareholders of the listed company 731841793 533524077 37.17 519978765
Net profit attributable to the shareholders of the listed company
498939242211097452136.35274145961
after deducting the non-recurring profits and losses
Net cash flows from operating activities 6249304381 5275878878 18.45 5184184446
Year-on-year
At the end of 2025 At the end of 2024 At the end of 2023
change (%)
Net assets attributable to the shareholders of the listed company 16176507028 15867533500 1.95 15756552794
Total assets 83034703505 85767463201 -3.19 84864576091
(II) Major financial indexes
Year-on-year
Major financial indexes 2025 2024 2023
change (%)
Basic earnings per share (RMB/share) 0.14 0.10 40.00 0.10
Diluted earnings per share (RMB/share) 0.14 0.10 40.00 0.10
Basic earnings per share after deducting non- recurring profits and losses (RMB/share) 0.09 0.04 125.00 0.05
Weighted average rate of return on net assets (%) 4.69 3.39 +1.30 3.37
Weighted average ROE after deducting non-recurring profits and losses (%) 3.19 1.29 +1.90 1.74
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
The change in net profit attributable to shareholders of the listed company was mainly due to the increase in profit
resulting from the increase in project delivery.The change in net profit attributable to shareholders of the listed company after deducting non-recurring profits and
losses was mainly due to the increase in profit resulting from the increase in project delivery and the decrease in gains
from asset disposals.The change in basic earnings per share was mainly due to the increase in profit resulting from the increase in project
delivery.The change in diluted earnings per share was mainly due to the increase in profit resulting from the increase in project
delivery.The change in basic earnings per share after deducting non-recurring profits and losses was mainly due to the increase in
profit resulting from the increase in project delivery and the decrease in gains from asset disposals.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 applicableANNUAL REPORT 2025
(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 applicable
IX. Main financial data in 2025 by quarter
Unit: RMB Currency: CNY
Q1 Q2 Q3 Q4
(Jan. to Mar.) (Apr. to Jun.) (Jul. to Sep.) (Oct. to Dec.)
Operating revenue 8517137247 8878569412 8610978826 10253772841
Net profit attributable to the shareholders of the listed company 255338086 89069399 179439030 207995278
Net profit attributable to the shareholders of the listed company
268835264-22738576117208191135634363
after deducting the non-recurring profits and losses
Net cash flows from operating activities 1877299473 1606531331 -702861694 3468335271
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: RMB Currency: CNY
Note
Non-recurring profit and loss items Amount in 2025 Amount in 2024 Amount in 2023
(if applicable)
Profit or loss from disposal of non-current assets including the write-off
364803929580952179038662
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 157488939 154291909 107480822
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
8145930012261969594482602
assets and financial liabilities except for effective hedging operations
associated with the Company’s normal operations
Capital occupation fees charged to the non-financial enterprises and
included in current profit or loss
Profit or loss from the assets entrusted to others for investment or
management
Profit or loss from external entrusted loans
Losses of various assets caused by force majeure such as natural disasters
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-
74229031858382419796255
mentioned items
Other profit or loss items that conform to the definition of non- recurring
profit or lossSection II Company Profile and Principal Financial Indexes
Note
Non-recurring profit and loss items Amount in 2025 Amount in 2024 Amount in 2023
(if applicable)
Less: Affected amount of income tax 43453352 74475101 45161118
Affected amount of minority equity (after tax) 6495631 34136346 9804419
Total 232902551 322426625 245832804Explanations 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 applicable
XI. Companies with equity incentive schemes or employee stock ownership plans may choose
to disclose net profit after excluding the impact of share-based payments
Applicable √ Not applicable
XII. Items measured at fair value
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Beginning balance Ending balance Current change Impact on current profits
Jiangxi Huawu Brake Co. Ltd. 138755008 103401780 -35353228 84062335
China Railway Signal & Communication Corporation
395445574300044391-95401183-24497484
Limited
Hunan Fengri Power & Electric Co. Ltd. 33199200 45993605 12794405 171626
CCCC Highway Bridges National Engineering
131790191523527820562590
Research Centre Co. Ltd.CCCC National Engineering Research Center of
7937621955525916176380
Dredging Technology and Equipment Co. Ltd.Shenyang Weichen Crane Equipment Co. Ltd. 9058100 8407542 -650558 0
Ningbo Weilong Port Machinery Co. Ltd. 24208224 33296629 9088405 0
Shanghai Longchang Lifting Equipment Co. Ltd. 739815 0 -739815 0
Jiangsu Zhangjinggao Bridge Co. Ltd. 75410000 75410000 0 0
Nezha Smart Technology (Shanghai) Co. Ltd. 26798909 23297528 -3501381 0
Total 724731470 614642012 -110089458 59736477
XIII. Others
Applicable √ Not applicableANNUAL REPORT 2025
Section III Management Discussion and Analysis
I. Business operations 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 111 countries
and regions in the world.Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company embraces the vision
of building a world-class equipment manufacturing enterprise with global competitiveness. It pursues a talent-strong
and technology-strong enterprise strategy anchoring its operations in ports and steel structures — regarding ports as
the foundation and steel as the framework. The Company concentrates on its core businesses of port machinery offshore
engineering equipment and steel structures. It works comprehensively to enhance the core competitiveness of smart
ports and accelerates development toward high-end intelligent green and global standards. The Company is committed
to building a modern industrial system vigorously fostering new quality productive forces and systematically enhancing
its integrated capabilities in equipment manufacturing and services. Through practical measures including clarifying its
strategic roadmap optimizing product performance and refining customer services the Company successfully achieved
all major operating targets for 2025.During the reporting period newly signed contracts and awarded bids for the Company’s port machinery business
reached USD 4.6 billion representing a year-on-year increase of 14.97%. Its ship-to-shore (STS) cranes continued to
maintain the industry’s leading position with the largest global market share. The traditional port machinery business
posted steady gains. By deepening ties with key domestic and overseas customers the Company secured several
landmark contracts including STS cranes for MARSA MAROC’s Casablanca Port in Morocco RTGs for Brazil’s BTP Terminal
and expansion projects at Phase II of SIPG’s Luodong Terminal and Ningbo’s Meibei Terminal. The smart port business
showed strong potential. The Company contributed to the commissioning of the Colombo West International Terminal
(CWIT) Sri Lanka’s first fully automated container terminal and delivered the automated empty container yard at the
Shangdong Terminal of Shanghai’s Yangshan Phase IV Port. Inland waterway operations yielded early returns. The
Company supported the launch of the Central Operation Area at Zhoukou Port’s Central Port Zone Henan Province’s
first dedicated container terminal with a one-million-TEU capacity. It also inaugurated its first partnership with Yunnan
Communications Investment & Construction Group. The aftermarket segment expanded rapidly highlighted by wins in
multiple domestic automation upgrade tenders. Overseas the Company drove the green transition of port operations
through retrofit projects notably converting diesel-powered equipment to electric.The offshore engineering business pressed ahead steadily booking USD 1.174 billion in new contracts and bids awarded
during the year. Overseas expansion achieved new breakthroughs. The Company secured contracts for two offshore wind
O&M mother vessels for France’s LDA marking its inaugural entry into the European wind farm support vessel market. It
also landed contracts for multipurpose heavy-lift vessels deepwater crane vessels multifunctional cable-laying vessels
and a 1600-ton gantry crane.The steel structure business navigated significant headwinds closing the year with USD 345 million in newly signed
contracts and awarded bids. In bridge steel structures the Company secured contracts for the Shiziyang Passageway and
the Third Qiantang River Bridge. In wind power steel structures several offshore converter stations under construction
topped out. Upon completion these facilities will play a pivotal role in scaling up China’s offshore wind power
development and advancing the national “Dual Carbon” goals.The shipping business broadened its service portfolio providing effective support for core operations. Other business
segments advanced steadily.Section III Management Discussion and Analysis
Description of significant new non-core businesses during the reporting period
Applicable" √ Not applicable
II. Industry overview during the reporting period
China’s manufacturing sector is undergoing a pivotal shift from scale-led to innovation-led growth. Traditional industries
are demonstrating strong revitalization in their transformation while strategic emerging industries continue to expand.Policies supporting intelligent green and converged industrial development are being rolled out at pace driving deeper
advances in smart manufacturing green manufacturing and service-oriented manufacturing.In port machinery the development of world-class port clusters is accelerating spurring robust demand for smart
terminal upgrades. The industry is trending toward larger-scale automated intelligent and greener solutions. New
energy and lightweight equipment are moving from pilot programs to volume procurement while exports of high-
end machinery featuring LiDAR and machine vision technologies are growing steadily. In smart ports the adoption
of autonomous haulage trucks and intelligent dispatching systems is accelerating. 5G-plus IoT solutions have proven
effective unlocking demand for green infrastructure such as cold-ironing systems energy storage and PV installations.Major hub ports are increasingly playing a pivotal role in demonstrating best practices. In inland waterway machinery
the sector has entered a fast-growth phase driven by waterway upgrades and improved multimodal transport networks.Investment in inland infrastructure is poised to outpace that of seaports driving significant demand for lightweight
intelligent equipment tailored to complex inland operating conditions. In the aftermarket segment the vast global
installed base of aging equipment is set to drive intensive demand for system upgrades and retrofits over the coming
decade.In offshore engineering the industry is benefiting from dual tailwinds: cyclical recovery and structural upgrading. The
global energy transition is fueling demand for wind turbine installation vessels (WTIVs) and O&M vessels. Deepwater
oil and gas equipment is evolving toward greater intelligence and autonomy. With offshore wind capacity steadily
expanding global demand for high-end offshore equipment remains robust.In steel structures the advancement of national strategies such as building a transportation powerhouse and new
urbanization underpins significant projected growth in the domestic bridge steel market. Concurrently the rapid
expansion of offshore wind capacity is driving sustained uptake of wind power steel structures.III. Discussion and analysis of the performance
The year 2025 represented both the culmination of the Company’s 14th Five-Year Plan and a pivotal juncture forANNUAL REPORT 2025
formulating the 15th Five-Year Plan and charting the course for the next five years. Guided by Xi Jinping Thought on
Socialism with Chinese Characteristics for a New Era the Company thoroughly implemented the directives of the 20th
CPC National Congress and all subsequent plenary sessions. Fully aligned with the decisions and plans of SASAC and
adhering to its overarching “123456” development framework the Company accomplished all annual targets and
delivered a high-quality conclusion to the 14th Five-Year Plan. During the reporting period the Company significantly
enhanced its development quality and efficiency posting operating revenue of approximately RMB 36.26 billion a year-
on-year increase of 5.24% and net profit attributable to the parent company of RMB 732 million a year-on-year increase
of 37.17%. The major initiatives undertaken are as follows:
First the strategic roadmap became clearer. The Company refined its overall development strategy and formulated the
master plan and supporting sub-plans for the 15th Five-Year Plan. It rolled out dedicated action plans that systematically
map out three-year roadmaps implementation pathways and measures for each business line.Second the core businesses grew more robust. Business expansion gained further traction: the port machinery market
was consolidated; the offshore engineering market was deepened; breakthroughs were achieved in the steel structure
market; smart port capabilities were enhanced; design expertise was upgraded; and both inland waterway and
aftermarket businesses grew rapidly. The shipping business provided solid support for core operations. Integrated service
capabilities improved markedly. The Company deepened strategic partnerships with key customers and significantly
enhanced cross-functional synergy spanning R&D design production supply chain logistics and customer service. It
also refined its customer service management system and launched the “OUR ZPMC” digital service platform.Third production fulfillment achieved higher quality. The Company streamlined coordinated management optimized
allocation of production and ensured the effective operation of its two-tier production command system. Subcontracting
oversight improved through standardized procurement and site management alongside an optimized subcontractor
mix. Project delivery quality and efficiency rose steadily bolstered by dedicated task forces addressing key quality issues.Product quality improved continuously with fulfillment rates increasing year-on-year across multiple production bases.Fourth improvements in quality and efficiency became more pronounced. The Company tightened comprehensive
budget management rolling out a project budgeting system to strengthen oversight across the entire budget cycle. Cost
control measures yielded significant supply chain savings. Financial management improved through centralized fund
management and stringent control over receivables inventory and prepayments — the “Three Types of Funds.” Asset
optimization initiatives enhanced the operational returns of PPP assets and self-owned properties.Fifth innovation-driven development became even more dynamic. The Company advanced high-end development
rolling out action plans for technological self-reliance and enhanced design management culminating in the release
of multiple international and national standards. It accelerated digital transformation by developing and implementing
the “Digital and Intelligent ZPMC” Action Plan encompassing management digitalization data governance smart
manufacturing upgrades and “AI Plus” applications while advancing the implementation of smart-manufacturing
projects. Green development progressed with the launch of a comprehensive decarbonization action plan and an energy-
carbon management platform. The Company secured the world’s first carbon footprint certification for STS cranes and
RMGs established industry benchmarks for carbon footprint quantification and saw multiple subsidiaries recognized as
local Green Factories.Sixth the workforce grew stronger. The Company bolstered talent development by rolling out dedicated initiatives for
scientific researchers and overseas personnel. It optimized leadership appointments deepening the tenure-based and
contract-bound management system to build high-caliber leadership teams for regional headquarters. Furthermore it
advanced the development of its industrial workforce by issuing formal management regulations and a three-year action
plan.IV. Analysis of the core competitiveness during the reporting period
√ Applicable Not applicable
1. Market position advantages
The Company centers its strategy on core businesses of port machinery offshore engineering equipment and steelSection III Management Discussion and Analysis
structures while elevating the core competitiveness of smart ports and establishing diverse product families across
these domains. In port machinery the Company has retained its industry leadership in STS cranes for many consecutive
years. It leverages cutting-edge design philosophies for port facilities and offers end-to-end design capabilities
encompassing smart port system integration and EPC services. In offshore engineering the Company commands robust
R&D and manufacturing capabilities for core supporting equipment. Key offerings including large-scale cranes jacking
systems and heavy-duty anchor winches have earned strong market recognition domestically backed by established
technological innovation hubs. In steel structures the Company maintains a significant market presence in bridges
offshore wind power and marine engineering. It holds substantial technical reserves and its production bases are fully
equipped to handle diverse and complex fabrication processes.
2. Production resource advantages
The Company operates multiple modern production bases across Shanghai and Jiangsu featuring a combined quay
length of 10208 meters and an annual steel fabrication capacity of one million tons. These diverse facilities integrate
specialized workshops expansive outdoor assembly yards heavy-duty terminals and a comprehensive fleet of large-
scale lifting equipment including ultra-large crane vessels floating cranes and gantry cranes. This infrastructure enables
the efficient high-quality and safe execution of lifting operations for both in-house production and external customers.Furthermore the Company owns a fleet of self-propelled heavy-lift vessels capable of transporting fully assembled large-
scale products worldwide.
3. Technological R&D advantages
The Company aligns its R&D agenda with national priorities and industrial upgrading demands anchored by a three-
tier matrix of 10 innovation platforms spanning national provincial/ministerial and group levels. Notably the National
Engineering Research Center for Core Offshore Hoisting and Pipe-Laying Equipment became fully operational
spearheading major projects involving dredging equipment pipe-laying/cable-laying vessels and offshore wind power.During the reporting period the Company kicked off 8 new national flagship projects and added 8 new R&D initiativesat the national and provincial-ministerial levels. Leveraging these platforms it deepened its integrated “project-talent-platform” cultivation model to systematically nurture leading scientists and elite innovation teams.Centered on its “3+1” core portfolio (port machinery offshore engineering steel structures and smart ports) the
Company rolled out pioneering equipment including the 3E Ultra mega STS crane and the large-span double-rigid-leg
automated RMG. It delivered the world’s first automated terminal featuring a U-shaped process layout. Its proprietary
Terminal Operating System (TOS) was deployed at inland container terminals. Additionally the Company’s first domestic
full-rotation crane-piling machine was installed on a 110-meter elevated rotary piling vessel while its core transmission
components were integrated into China’s largest-diameter domestically built tunnel boring machine providing critical
support for national megaprojects. The Company delivered the world’s largest fully electric environmental cutter suction
dredger and pioneered an integrated ecological dredging platform. It cracked bottleneck technologies including
intelligent perception and navigation controllers for port AGVs and DP2 dynamic positioning systems. The Company also
launched iterations of key products such as the Model S high-speed automated RMG and intelligent truck positioning
systems fostering a virtuous R&D-to-commercialization cycle.During the reporting period the Company assumed the role of Chair Secretariat of the ISO Port Terminals Subcommittee
actively driving the globalization of Chinese standards and cementing its industry leadership. The Company’s excellence
is reflected in its 4 National Science and Technology Progress Awards 5 China Patent Excellence Awards 35 provincial-
ministerial S&T progress awards and 1 provincial-ministerial technological invention award. It has been instrumental
in drafting 9 international standards 35 national standards and 34 industry standards. Furthermore it commands a
portfolio of 2721 valid patents including 2661 domestic and 60 international patents.
4. International presence advantages
The Company’s products are present in 111 countries and regions worldwide. The Company operates 8 regional
headquarters across the globe. It maintains overseas talent centers in India and Sri Lanka to safeguard delivery schedules
and ensure rapid service response. Furthermore it hosts research branches in Europe North America and Asia to deepen
collaboration with local clients and deliver faster superior technical services.ANNUAL REPORT 2025
5. Marketing and customer service advantages
Driven by the principle of “customer-centricity — meeting needs and creating value” the Company upholds a rapid-
response ethos focused on efficiency quality and satisfaction. Aligning its innovation pipeline closely with market and
user demands the Company fields a customer service team of nearly 1000 professionals. It has built an integrated end-
to-end ecosystem covering R&D marketing production procurement and service enabling it to provide seamless
turnkey solutions from research design procurement and manufacturing to transportation installation and O&M.
6. Brand advantages
The homegrown “ZPMC” brand wields considerable influence in the global heavy equipment manufacturing sector. It
was named among the first batch of Outstanding Brands among central SOEs by SASAC and has garnered accolades such
as the Top 500 Chinese Brands the Huapu Award and the Jinpu Award.
7. Talent advantages
The Company’s core management team remains stable boasting a well-balanced knowledge structure and age profile
coupled with global strategic vision extensive practical backgrounds and strong decision-making capabilities. The
Company invests heavily in talent development maintaining a robust HR system covering recruitment training and
remuneration. It continues to expand its pool of core technical experts thereby enhancing professional proficiency and
providing sustained high-quality brainpower to underpin the growth of all business lines.V. Primary business performance during the reporting period
During the reporting period the Company’s operating revenue was steadily rising reaching RMB 36.260 billion
representing a year-on-year increase of 5.24%; the net profit attributable to shareholders of the parent company
amounted to RMB 732 million representing a year-on-year growth of 37.17%; net cash flows from operating activities
totaled RMB 6.249 billion up 18.45% compared to the same period last year.(I) Analysis of main business
1. Analysis table of changes in the related items in profit statement and cash flow statement
Unit: RMB Currency: CNY
Item 2025 2024 Change (%)
Operating revenue 36260458326 34456420181 5.24
Operating costs 31278160080 30060171301 4.05
Selling and distribution expenses 236909842 232654482 1.83
General and administrative expenses 837981962 818457672 2.39
Financial expenses 330376439 324945799 1.67
Research and development expenditures 1515374795 1502397344 0.86
Net cash flows from operating activities 6249304381 5275878878 18.45
Net cash flows from investment activities -473108409 -221754360 N/A
Net cash flows from financing activities -7026172711 -4303151262 N/A
Investment income 144556726 78121431 85.04
Income from fair value change -7820546 13425987 -158.25
Credit impairment loss -545528648 -418414816 N/A
Assets impairment losses -386685061 -200815539 N/A
Income from disposal of assets 42148850 106961574 -60.59
The change in operating revenue was mainly due to the increase in project deliveries.The change in operating costs 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.Section III Management Discussion and Analysis
The change in general and administrative expenses was mainly due to higher employee compensation for management
personnel.The change in financial expenses was mainly due to reduced exchange gains resulting 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 operating activities was mainly due to the decrease in cash payments for the
Company’s purchase of goods and receipt of services.The change in net cash flows from investment activities was mainly due to the decrease in cash from investment
withdrawal.The change in net cash flows from financing activities was mainly due to the decrease in the borrowings of the Company
from banks.The change in investment income was mainly due to the increase in investment income from associates and the decrease
in losses on derecognition of financial assets measured at amortized cost during the reporting period.The change in income from fair value change was mainly due to the disposal of shares by the Company during the year.The change in credit impairment loss was mainly due to the increase in provisions for bad debts recognized during the
reporting period.The change in assets impairment losses was mainly due to the increase in provisions for impairment of contract assets
recognized during the reporting period.The change in income from disposal of assets was mainly due to the decrease in income from disposal of fixed assets
during the reporting period.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 36.260 billion representing a year-on-year increase of
5.24%; the operating cost was RMB 31.278 billion representing a year-on-year increase of 4.05%.
(1) Main business by sector product region and sales model
Unit: RMB Currency: CNY
Main business by product
Year-on- year Year-on-year
Year-on-year
Operating Gross profit change in change in
Product Operating costs change in gross
revenue rate(%) operating operating cost
profit rate (%)
revenue (%) (%)
Port machinery 22776108389 19303237872 15.25 10.60 10.30 +0.23
Heavy equipment 7382674206 6822593786 7.59 -10.97 -9.57 -1.43
Engineering construction projects 285913696 374896137 -31.12 -30.86 -17.56 -21.16
Steel structure and related income 3396764185 3178636007 6.42 1.64 -3.49 +4.97
Marine transport and others 2261886121 1470175904 35.00 38.29 29.92 +4.18ANNUAL REPORT 2025
Main business by region
Year-on- year Year-on-year
Year-on-year
Operating Gross profit change in change in
Region Operating costs change in gross
revenue rate(%) operating operating cost
profit rate (%)
revenue (%) (%)
Chinese Mainland 19673193097 17452051085 11.29 8.81 17.09 -6.28
Chinese Mainland (export sales) 551014260 471458410 14.44 276.40 231.76 +11.52
Europe 2846772292 2459593417 13.60 98.00 79.52 +8.90
Asia (excluding Chinese Mainland) 7035536493 5553303262 21.07 -28.13 -41.60 +18.21
North America 3150614443 2863379602 9.12 89.24 103.34 -6.30
South America 432392071 337554197 21.93 -63.80 -67.05 +7.69
Africa 2393015993 1994999174 16.63 33.70 40.80 -4.21
Oceania 20807948 17200559 17.34 -88.02 -88.51 +3.52
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 the 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 applicable
Fulfillment of major sales contracts signed by the reporting period
√ Applicable Not applicable
Unit: RMB 100 million Currency: CNY
Amount
Explanation
Total Total performed Amount Normally
for abnormal
Subject-matter of contract The opposite party contracted amount during the to be performed
performance of
value performed reporting performed or not
the contract
period
Contract for ECT Terminal of East Port Chairman of Sri Lanka
2.8256 2.57748 0.74084 0.24812 Yes
Sri Lanka Ports Authority
Pr o c u r e m e n t o f d o u b l e - t r o l l e y
quayside container cranes for Phase
I project of the Container Terminal
Hu Chaoyang 12.93 7.4994 1.9395 5.4306 Yes
Project in East Operation Section of
Yantian Port Area Shenzhen Port
(secondary)
Deepwater crane vessel construction
Liu Jinzhang 11.488 1.7232 1.7232 9.7648 Yes
project for Guangzhou Salvage Bureau
Note: Unit of contracted value of Sri Lanka Project: USD 100 million
Fulfillment of major purchasing contracts signed by the reporting period
Applicable √ Not applicableSection III Management Discussion and Analysis
(4) Cost analysis
Unit: RMB Currency: CNY
Information based on product
Proportion of
Proportion in
the one in the
Items of cost total cost in Year-on-year
Product 2025 2024 same period of Description
structure the current change (%)
the last year in
period (%)
total costs (%)
Raw material cost Normal
Port machinery labor cost and 19303237872 61.97 17500885960 58.48 10.30 operating
production cost fluctuations
Raw material cost Normal
Heavy equipment labor cost and 6822593786 21.90 7544542230 25.21 -9.57 operating
production cost fluctuations
Raw material cost Normal
Engineering
labor cost and 374896137 1.20 454731637 1.52 -17.56 operating
construction projects
production cost fluctuations
Raw material cost Normal
Steel structure and
labor cost and 3178636007 10.20 3293532465 11.01 -3.49 operating
related income
production cost fluctuations
Raw material cost Normal
Marine transport and
labor cost and 1470175904 4.72 1131566701 3.78 29.92 operating
others
production cost fluctuations
Other information about cost analysis
None
(5) Changes in consolidation scope attributable to changes in equity of main subsidiaries during the reporting period
Applicable √ Not applicable
(6) Significant change or adjustment of business products or service during the reporting period
Applicable √ Not applicable
(7) Particulars about main customers and suppliers
Customers or suppliers under common control shall be presented on a combined basis as the same customer or supplier
except where they are ultimately controlled by the same state-owned assets administration authority.Explanation of customer and supplier information presented on a combined basis according to the common-control
principle
CCCG and its subsidiaries are presented on a combined basis
A. Main customers and suppliers of the Company
√ Applicable Not applicable
The sales to the top 5 customers were RMB 7377896200 accounting for 20.35% of the total annual sales; the sales to the
related parties among the top 5 customers were RMB 2849411000 accounting for 7.86% of the total annual sales.The purchases from the top 5 suppliers were RMB 4036180600 accounting for 15.98% of total annual purchases; the
purchases from the related parties among the top 5 suppliers were RMB 1221953500 accounting for 4.84% of total
annual purchases.B. 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
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 applicableANNUAL REPORT 2025
C. Indicate whether the Company’s shares were subject to delisting risk warning or other risk warning during the
reporting period
Top 5 customers
Applicable √ Not applicable
Top 5 suppliers
Applicable √ Not applicable
D. Indicate whether the Company generated revenue from trading business during the reporting period
Applicable √ Not applicable
Top 5 customers where trading business revenue accounted for more than 10% of operating revenue
Applicable √ Not applicable
Top 5 suppliers where trading business revenue accounted for more than 10% of operating revenue
Applicable √ Not applicable
Other description:
None
3. Expenses
√ Applicable Not applicableFor details see “Section III. V. Primary business performance during the reporting period — (I) Analysis of mainbusiness — 1. Analysis table of changes in the related items in profit statement and cash flow statement” of this report.
4. R&D investments
(1) Detail table of R&D investments
√ Applicable Not applicable
Unit: RMB Currency: CNY
Current expensed R&D investments 1515374795
Current capitalized R&D investments 0
Total R&D investments 1515374795
Proportion of total R&D investments in operating revenue (%) 4.18
Proportion of capitalized R&D investments (%) 0
(2) Detail table of R&D employees
√ Applicable Not applicable
Number of R&D employees in the Company 1890
Proportion of number of R&D employees in the total employees of the
23.82
Company (%)
Educational structure of R&D employees
Educational structure category Number
Doctor 16
Master 298
Undergraduate 1403
Junior College 149
Senior high school and below 24Section III Management Discussion and Analysis
Age structure of R&D employees
Age structure category Number
Under 30 (exclusive) 304
30-40 (inclusive of 30 and exclusive of 40) 613
40-50 (inclusive of 40 and exclusive of 50) 815
50-60 (inclusive of 50 and exclusive of 60) 153
60 and above 5
(3) Explanation
Applicable √ Not applicable
(4) Reasons for any significant change in the composition of R&D employees and the impact on the future development
of the Company
Applicable √ Not applicable
5. Cash flows
√ Applicable Not applicableFor details see “Section III. V. Primary business performance during the reporting period — (I) Analysis of mainbusiness — 1. Analysis table of changes in the related items in profit statement and cash flow statement” of this report.(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: RMB Currency: CNY
Proportion of the Proportion of the
Amount at Amount at the end
amount at the end of amount at the end of Year- on- year
Item the end of the of the previous Description
the current period in the previous period change (%)
current period period
total assets(%) in total assets (%)
Notes receivable 149325265 0.18 50000000 0.06 198.65
Non-current assets due
8885800541.0713460609001.57-33.99
within one year
Other current assets 1338624990 1.61 858154532 1.00 55.99
Right-of-use assets 17568182 0.02 37979304 0.04 -53.74
Short-term borrowings 3686556417 4.44 2297334457 2.68 60.47
Non-current liabilities due
43090862675.1967457206477.87-36.12
within one year
Estimated liabilities 302749809 0.36 208887331 0.24 44.93
Other description:
The change in notes receivable was mainly due to the increase in commercial bills endorsed or discounted by the
Company during the reporting period that may not satisfy the derecognition criteria.The change in non-current assets due within one year was mainly due to the decrease in the Company’s long-term
receivables due within one year.The change in other current assets was mainly due to the increase in the Company’s input tax to be deducted.The change in right-of-use assets was mainly due to the decrease in the Company’s leased assets.ANNUAL REPORT 2025
The change in short-term borrowings: was mainly due to the increase in the short-term borrowings of the Company from
banks.The change in non-current liabilities due within one year was mainly due to the decrease in the long-term borrowings
due within one year of the Company from banks.The change in estimated liabilities was mainly due to the increase in the Company’s estimated after-sales service costs.
2. Overseas assets
√ Applicable Not applicable
(1) Asset size
Including: Overseas assets of 22566435910 (Unit: RMB Currency: CNY) accounting for 27.18% 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: RMB Currency: CNY
Item Book value at the end of the period Reason for restriction
Monetary funds 28075380 Special fund L/C deposits L/G deposits etc. in the overseas supervision account
Fixed assets 2294086970 Collateral for loan
Long-term receivables 1015896808 Hypothecation for loan
Other non-current assets 3492464663 Hypothecation for loan
Contract assets 193452361 Hypothecation for loan
Accounts receivable 357764154 Hypothecation for loan
Intangible assets 1483548403 Hypothecation for loan
4. Other description
Applicable √ Not applicable
(IV) Analysis of operational information of the industry
√ Applicable Not applicable
Globally the political and economic landscape remains highly volatile with regional conflicts proliferating and
uncertainties and complexities in the international environment mounting significantly. Concurrently the ongoing
technological revolution and industrial transformation continue to unlock new industry opportunities. Despite mounting
external headwinds the fundamental pillars underpinning China’s high-quality development — a resilient economic
base distinct comprehensive advantages robust dynamism and immense growth potential — remain firmly in place
sustaining the long-term positive trajectory.In the port machinery sector demand for automation and smart terminal upgrades retains considerable upside.Equipment demand across BRI economies remains resilient while the country’s push to bolster inland waterway shipping
is spawning fresh opportunities. Nevertheless the sector is grappling with intensifying competition and sustained margin
compression amid rising costs. Global supply chain disruptions and shifting trade patterns have introduced heightened
uncertainty into overseas expansion. Furthermore the accelerated iteration of high-end green and intelligent
technologies is placing elevated demands on corporate innovation capabilities.In the offshore engineering sector long-term fundamentals point to a stable and constructive outlook. Offshore wind
power has solidified its role as a critical pillar of the marine economy and the broader new energy landscape though
near-term headwinds persist. Volatility in global energy markets slower project investment cycles and escalating
competition have collectively tempered the pace of recovery. Compounding this the accelerated evolution of high-endSection III Management Discussion and Analysis
equipment intelligent systems and key supporting components continues to entrench technological barriers placing
intensified pressure on delivery timelines quality benchmarks and cost controls thereby demanding superior integrated
capabilities.In the steel structure market synergies between transportation infrastructure and the new energy industry continue
to underpin robust growth potential for bridge and wind power steel structures. However the sector faces escalating
homogeneous competition and volatile raw material costs which are squeezing margins and complicating cost control.The bar for high-end fabrication is being raised by exacting requirements for process precision weld quality anti-
corrosion technologies and intelligent manufacturing proficiency.(V) Analysis of investment
Overall analysis of external equity investment
√ Applicable Not applicable
Unit: RMB Currency: CNY
Investment amount by the end of reporting period 2401013967
Changes in investment amount -90870112
Investment amount in the same period of the last year 2491884079
Change in investment amount (%) -3.65
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: RMB 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 redeemed in
balance values for the recognized in changes balance
the period in the period the period
period equity
Stock 534200582 -7820546 -122933865 403446171
Total 534200582 -7820546 -122933865 403446171
Securities investment
√ Applicable Not applicable
Unit: RMB Currency: CNY
Accumulated
Profit or loss Amount Profit or
Initial Book value at fair value Book value
Securities Stock Stock Fund on changes in purchased Amount sold loss on Accounting
investment the beginning changes at the end of
Variety code abbreviation source fair values for in the in the period investments subject
cost of the period recognized in the period
the period period in the period
equity
Held-for-
Self-
trading
Stock 03969 CRSC 617854000 owned 395445574 21604639 -117005822 -21616648 300044391
financial
funds
assets
Held-for-
Self-
trading
Stock 300095 Huawu Stock 11071606 owned 138755008 -29425185 -5928043 110722262 103401780
financial
funds
assets
Total / / 628925606 / 534200582 -7820546 -122933865 89105614 403446171 /ANNUAL REPORT 2025
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 applicableOn April 27 2025 the 11th meeting of the Ninth 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. planned to dispose of part or all of the held-for-trading financial assets at an appropriate
time based on the market conditions. The Board of Directors authorized 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. 2025-017) disclosed by the Company on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on April 28 2025 for details.See paragraph “(V) Analysis of investment” of “Part V. Primary business performance during the reporting period” under
“Section III Management Discussion and Analysis” of this annual report for details of the Company’s holdings.(VII) Analysis of the primary holding companies and the joint-stock companies
√ Applicable Not applicable
Information on main subsidiaries and associates contributing more than 10% of the Company’s net profit
√ Applicable Not applicable
Unit: RMB Currency: CNY
Type of Registered Operating Operating
Company Name Main business Total assets Net assets Net profit
company capital revenue profit
Design construction dismantling and
services relating to large-scale port
equipment container yard cranes
general machinery and equipment
gearboxes and their components and
spare parts; specialized contracting for
steel structure engineering; design
construction dismantling and services
relating to bridge steel structures
building steel structures and large
Nantong Zhenhua metal structural components and
Heavy Equipment their accessories; design construction
Subsidiary 2500000000 7166121357 2527550941 5336516846 27230152 53357406
M a n u f a c t u r i n g dismantling and ser vices relating
Co. Ltd. to offshore wind power installation
p l a t fo r m s w i n d p owe r m o d u l e s
e q u i p m e n t c o m p o n e n t s a n d
supporting facilities; EPC contracting
for offshore engineering; design
construction dismantling and services
re l a t i n g to o f fs h o re e n gi n e e r i n g
equipment offshore living platforms
o i l and gas modules equipment
components and supporting facilities
among others.Section III Management Discussion and Analysis
Type of Registered Operating Operating
Company Name Main business Total assets Net assets Net profit
company capital revenue profit
Sales of port loading and unloading
machine bulk cargo and container
machine port engineering vessels
Shanghai (including floating engineering cranes)
Zhenhua Heavy material handling machinery products
Industries Port and parts; sales and technical services
Machinery Subsidiary installation and maintenance technical 2184730000 2360616421 2161757527 332985375 151923 180684
General consultation of all types of machine
Equipment Co. and equipment key parts of the raw
Ltd. materials and accessories equipment;
crane manufacturing installation
modification and maintenance steel
structure fabrication among others.Construction and installation of large-
scale port equipment engineering
Shanghai vessels offshore heavy equipment
Zhenhua Heavy mechanical equipment gear box for
Industries Group wind power generation equipment;
(Nantong) Subsidiary large-sized reverse branch transmission 738878329 2468534948 1774537938 1154887486 127541699 103804519
Transmission mechanism dynamic positioning large-
Machinery Co. sized anchor windlass offshore oil
Ltd. platform lifting device and components;
design and manufac tur ing of the
accessories
Shanghai
Design manufacturing and sales of port
Zhenhua Port HKD
Subsidiary machinery engineering vessel steel 12849723770 336631821 3538542147 27161049 17159297
Machinery (Hong 50000000
structure and other parts
Kong) Co. Ltd.Greenland
Heavylift USD
Subsidiary Marine transport 2694489992 1430037186 821565161 359986910 359777140
(Hongkong) 91975158
Limited
Construction repair conversion and
sale of general-purpose and specialized
ZPMC Qidong vessels of up to 100000 tons offshore
Marine engineering platforms; steel structure
Subsidiary 303000000 1755482973 -1142008127 3314575668 46912450 50504935
Engineering Co. fabrication and sales; manufacture and
Ltd. sale of marine supplies and accessories;
ship technical consulting services
among others.Acquisition and disposal of subsidiaries during the reporting period
√ Applicable Not applicable
Method of acquisition and
Company Name disposal of subsidiaries Impact on overall production operations and operating results
during the reporting period
As of December 31 2025 this subsidiary had no material impact on the
ZPMC Morocco Co. Ltd. Newly established
Company’s overall production operations or operating results.CCCC Zhenhua Offshore Hoisting and
As of December 31 2025 this subsidiary had no material impact on the
Pipe-Laying Core Equipment Engineering Newly established
Company’s overall production operations or operating results.Technology (Shanghai) Co. Ltd.As of December 31 2025 this subsidiary had no material impact on the
ZPMC Group (Hainan) Co. Ltd. Newly established
Company’s overall production operations or operating results.Zhenhua Haitong Intelligent Equipment As of the date of deregistration this subsidiary had no material impact on the
Deregistered
Co. Ltd. Company’s overall production operations or operating results.Other description
Applicable √ Not applicable
(VIII) Particulars about structured entities controlled by the Company
Applicable √ Not applicableANNUAL REPORT 2025
VI. Discussion and analysis of the future development of the Company
(I) Industrial structure and trend
√ Applicable Not applicable
For 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”.(II) Development strategy of the Company
√ Applicable Not applicable
1. Development strategy
(1) Pursue one vision: Build a world-class equipment manufacturing enterprise with global competitiveness anchored by
outstanding products a prestigious brand cutting-edge innovation and modern governance.
(2) Consolidate two foundations: Uphold the principle that science and technology are the primary productive force
talent is the primary resource and innovation is the primary driver. Execute the strategies of strengthening the enterprise
through talent empowerment and technological advancement.
(3) Focus on three core businesses: Embrace a global outlook centered on manufacturing excellence and core-business
specialization. Stay laser-focused on the customer by meeting needs and creating value. Grounded in ports and steel structures
as twin pillars the Company will double down on its three core businesses: port machinery offshore engineering and steel
structures. This will enable it to expand its product families elevate the core competitiveness of smart ports accelerate the
build-out of a modern industrial system and vigorously cultivate new quality productive forces.
(4) Accelerate development across four dimensions: Pivot toward high-end intelligent green and integrated
development: high-end to set direction intelligence to drive efficiency green to define identity and integration to foster
synergy. The Company is committed to delivering “ZPMC Solutions” developing “ZPMC Products” establishing “ZPMCStandards” and enhancing the “ZPMC” brand.
(5) Fully implement the five core principles of “Innovation Green Development Digital Intelligence Integrationand Sustainability”: The Company will refine its management approach — emphasizing coordination innovation
lean practices efficiency and sharing. Driving a strategic pivot from volume to value the Company is shifting from
selling products to selling premium technologies from equipment to integrated systems from hardware to software
(services) from an overseas focus to a balanced global presence and from conventional production to intelligent
green manufacturing. These efforts will cement its position as the world’s leading manufacturer and transporter of port
machinery premier provider of automated terminal solutions and a globally recognized builder of specialized vessels
and large-scale steel structures.
(6) Adhere to six guiding principles systematically address six enduring strategic issues and accomplish six major
initiatives: Prioritize the “Six Core Elements”: technologies and products teams competitiveness markets profit models
and brand culture. The Company will sharpen its integrated capabilities across market development R&D supply chain
management smart manufacturing logistics and customer service. It aims for the “Six Zeros”: zero safety incidents zero
quality defects zero emissions zero delays zero waste and zero complaints.(III) Operation plan
√ Applicable Not applicable
The Company stays firmly customer-centric satisfying customer needs and creating customer value. It will aggressively
capture incremental opportunities arising from China’s “one network four priorities” approach (i.e. building a modern
high-quality national comprehensive 3D transportation network with a focus on integrated convergence safety
enhancement digital-intelligent upgrading and green transition) and the BRI. It will deepen strategic innovation and
developmental synergies across the global partnership network to bolster its core product competitiveness.Section III Management Discussion and Analysis
The port machinery business will cement its market leadership and core competitiveness. While consolidating the
dominance of its STS cranes the Company will drive cost efficiency and productivity in yard cranes and comprehensively
upgrade the performance of mobile harbor machinery. The smart port business will enhance its capabilities in delivering
integrated hardware-software solutions system integration and value-added services. The inland waterway business will
focus on developing standardized prefabricated and lightweight products gradually establishing a proven development
model for this market. The aftermarket business will refine its end-to-end service system across the entire value chain. The
Company will control costs through essential non-fee services while expanding its market share via premium fee-based
services simultaneously driving service enhancement and business model innovation. The offshore engineering business
will center on cornerstone products such as dredgers crane vessels and pipe-laying vessels to elevate our R&D and
manufacturing prowess. The steel structure business will overhaul its operational managerial and production models
with a strategic focus on bridge and wind power steel structures. The shipping business will ensure stable operations by
enhancing internal service quality expanding external markets to generate value and optimizing asset management
to preserve and appreciate asset value. The investment business will align closely with the Company’s core strategy
channeling resources into strategic equity investments upgrades and transformations and business model innovation.New industries (and new products) will target supply chain security and autonomy support the transformation of core
businesses and address the critical needs of key clients. The Company will extend the industrial chain deepen the value
chain integrate the supply chain and unlock new market frontiers.(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 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.
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 Company faces persistent pressures regarding the security and stability of
international supply chains. It will deepen supply chain management integrate internal and external resources and
advance systemic supply chain development to bolster resilience and security. Strengthening supply autonomy the
Company will accelerate technological upgrades and capacity building for key systems including electrical control
assemblies cable reels and elevators to forge a core competitiveness that drives sustainable growth.(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 2025
Section IV Corporate Governance Environment and Social
I. Related information about corporate governance
√ Applicable Not applicable
During the reporting period the Company demonstrated strict adherence to the Company Law the Securities Law the
Code of Corporate Governance for Listed Companies the Rules Governing the Listing of Stocks on the Shanghai Stock
Exchange and other relevant laws regulations and regulatory guidelines. Upholding rigorous operational standards
and legal compliance the Company continuously optimized its governance structure and elevated governance efficacy.In 2025 the Company convened 3 general meetings of shareholders and 10 meetings of the Board of Directors all
conducted in full compliance with laws regulations and internal policies regarding convening holding voting and
disclosure procedures.Actively implementing reforms to the Board of Supervisors the Company systematically revised the Articles of
Association the Rules of Procedure of the Board of Directors and the Rules of Procedure of the General Meeting of
Shareholders. These measures optimized its governance structure and deliberation processes laying a bedrock for the
efficient operation of the new governance framework. The Company strengthened the audit and risk committee of
the Board of Directors to ensure a seamless transition of oversight responsibilities. Committed to fostering a scientific
prudent and efficient Board of Directors the Company optimized its composition by electing employee directors
through the Workers’ Congress. These directors participate in major decision-making represent employee interests and
foster the organic integration of the workforce’s will with corporate governance. The Company fully leverages the role
of independent directors in decision-making oversight and professional consultation. Drawing on their professional
experience and industry experience they provide objective insights for strategic planning risk control and standardized
operations. Through attendance at key meetings review of operational reports and professional training they gain deep
insights into the Company’s business thereby sharpening their oversight effectiveness and bolstering the scientific rigor
and efficacy of Board decisions.The Company strictly complies with the Securities Law the Administrative Measures for Information Disclosure of Listed
Companies and other applicable laws and regulations. It has strengthened internal controls refined its information
disclosure policies elevated disclosure quality safeguarded its standing in the capital market and protected investors’
right to know. The Company discloses information through designated channels including the SSE website China
Securities Journal and Shanghai Securities News publishing 107 announcements and related filings during the year. It
regularly produced “One-Chart Digest” versions of its reports to enhance readability and dissemination efficiency. The
Company strengthened investor relations by revising the Investor Relations Management Measures formulating an
annual IR work plan and preparing structured roadshow materials to articulate its investment thesis. It tracked capital
market dynamics to inform IR strategy. Through multiple channels including the investor hotline the SSE e-Interaction
platform earnings calls and roadshows (including reverse roadshows) the Company maintained frequent substantive
engagement with investors. During the reporting period brokerages including Zheshang Securities and Huatai Securities
initiated or updated coverage assigning the Company “Overweight” or “Buy” ratings. The Company’s capital market
profile strengthened markedly and its IR efforts gained further traction.The Company stepped up its ESG efforts publishing multiple sustainability reports and putting in place an initial “1+N”
corporate responsibility reporting matrix. It actively participated in ESG assessments with its 2024 ESG Report rated
Four-and-a-Half Stars. The Company also distilled and disseminated its best practices with its cases named among the
“Excellent Sustainability Practice Cases” by the China Association for Public Companies. In 2025 the Company was named
to the “China ESG Top 100 Pioneer Central SOEs (Listed)” and received the “Responsibility Top Bull Awards · Overseas ESGPioneer.” These recognitions underscore its commitment to corporate responsibility and long-term value creation further
strengthening investor trust and market recognition.Indicate whether there are any material differences between the Company’s corporate governance practices and theSection IV Corporate Governance Environment and Social
relevant provisions on listed company governance under PRC laws administrative regulations and CSRC rules; if any
explain the reasons
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. Directors and officers
(I) Changes in shares held by current and resigned directors and officers during the reporting period and
their remunerations
√ Applicable Not applicable
Unit: Share
Number Total amount of
Number Change Whether
of shares remuneration pre-
of shares in Reason acquiring
Starting date of Expiration date held at tax acquired from Remarks for the
Name Position Sex Age held at the shares of remuneration in
tenure of tenure the end the Company in the total remuneration
beginning in the change the related parties
of the reporting period
of the year year of the Company
year (RMB 10000)
Director October 24 2023 June 16 2027 Including three-year
You Ruikai Male 59 0 0 0 128.53 Yes
Chairman February 27 2024 June 16 2027 term incentive
Director March 7 2018 June 16 2027
Including three-year
Zhu Xiaohuai General manager Male 57 0 0 0 159.14 No
September 18 2024 June 16 2027 term incentive
(president)
Employee director August 29 2025 June 16 2027 Including three-year
Wang Cheng Male 53 0 0 0 139.92 No
Director (resigned) August 25 2021 August 29 2025 term incentive
Director November 25 2024 June 16 2027 Including three-year
Li Zhen Male 55 0 0 0 67.67 Yes
CFO October 30 2024 June 16 2027 term incentive
Zhang Xue Director Male 59 December 25 2024 June 16 2027 0 0 0 0 Yes
Xia Lijun Independent director Male 50 June 28 2023 June 16 2027 0 0 0 12 No
Bian Yongming Independent director Male 61 June 17 2024 June 16 2027 0 0 0 12 No
Du Wenli Independent director Female 52 June 17 2024 June 16 2027 0 0 0 0 No
Yu Fang Independent director Male 51 August 25 2025 June 16 2027 0 0 0 4.14 No
Including three-year
Zhang Jian Vice president Male 57 April 20 2015 June 16 2027 0 0 0 136.73 No
term incentive
Vice president February 20 2023 June 16 2027 Including three-year
Li Ruixiang Male 51 0 0 0 133.83 No
Chief economist April 20 2015 June 16 2027 term incentive
Chief legal counsel April 20 2015 June 16 2027
Secretary of the Board
August 22 2018 June 16 2027 Including three-year
Sun Li of Directors Male 54 0 0 0 133.13 No
term incentive
Chief compliance
July 12 2021 June 16 2027
officer
Including three-year
Lu Hanzhong Vice president Male 51 February 20 2023 June 16 2027 0 0 0 123.19 No
term incentive
Including three-year
Shen Qiuyuan Vice president Female 49 February 20 2023 June 16 2027 0 0 0 122.14 No
term incentiveANNUAL REPORT 2025
Number Total amount of
Number Change Whether
of shares remuneration pre-
of shares in Reason acquiring
Starting date of Expiration date held at tax acquired from Remarks for the
Name Position Sex Age held at the shares of remuneration in
tenure of tenure the end the Company in the total remuneration
beginning in the change the related parties
of the reporting period
of the year year of the Company
year (RMB 10000)
Vice president May 28 2025 June 16 2027 Including three-year
Li Yiming Male 51 0 0 0 96.41 No
Chief engineer February 19 2025 June 16 2027 term incentive
January 20
Zhang Jianxing Director (resigned) Male 64 December 28 2022 0 0 0 9 Yes
2026
Independent Director
Zhang Hua Male 53 May 28 2019 August 25 2025 0 0 0 8 No
(resigned)
Vice president January 20 Including three-year
Liu Feng Male 55 October 29 2021 0 0 0 135.06 No
(resigned) 2026 term incentive
Vice president February 18 Including three-year
Shan Jianguo Male 62 April 20 2015 0 0 0 52.71 No
(resigned) 2025 term incentive
Total / / / / / 0 0 0 / 1473.60 / /
Name Main working experiences
Born in 1967 male EMBA professoriate 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
You Ruikai of the Party Committee general manager of the Investment Division of CCCC SHEC. From August 2013 he served as deputy general
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 chairman of CCCC SHEC. Currently he is a director and chairman of the Company.Born in 1969 male 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
Zhu Xiaohuai manager (in charge of the work) or manager of Finance Department and member of commission for disciplinary inspection of CCCC Shanghai Dredging Co. Ltd. and the director chief accountant and Party committee standing member of CCCC Shanghai Dredging Co.Ltd. and the executive general manager and CFO of the Company. Currently he is 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. He was elected as an employee director by the Company’s Workers’ Congress on August 29 2025.Currently he is employee director and chairman of the labor union of the Company.Born in 1971 male MBA professoriate 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.Li Zhen Ltd. Party Committee Member and Vice President of China Communications Construction Yangtze River Delta Regional 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. Currently he is a
director and the CFO of the Company.Born in 1967 male MBA professoriate 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.Zhang Xue (now known as CCCC Shitong Heavy Industry (Beijing) Co. Ltd.). Since April 2012 he had successively served as 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. Currently he is a 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 supervisor 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
Xia Lijun of Economics 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 CostResearch Society and an executive director of Shanghai Accounting Society. He has been selected into the “Accounting Masters TrainingProgram” of the Ministry of Finance and other talent programs. Currently he is an independent director of the Company.Section IV Corporate Governance Environment and Social
Name Main working experiences
Born in 1965 male doctor of engineering 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 May 2024 he was
the Dean of the College of Mechanical Engineering. He currently serves as professor and doctoral supervisor at the School of Mechanical
Bian Yongming Engineering Tongji University chairman of the China 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
chairman of the Major Engineering Construction Technology and Equipment Branch of the China Construction Machinery Society
deputy director of the National Engineering Research Center for Prefabricated Civil Engineering Structures director of the Ministry of
Education Engineering Research Center for Major Engineering Construction Technology and Equipment at Tongji University among
other positions. Currently he is an independent director of the Company.Born in 1974 female Ph.D. 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 Innovation
Du Wenli 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. Currently she is an independent
director of the Company.Born in 1975 male Ph.D. He served as senior lecturer in the Department of Finance at the University of Minnesota and research analyst
at Barclays Global Investors among other positions. He has received honors including the Best Paper Award at the 2020 Annual Meeting
of the Financial Management Association (FMA) the CEIBS Research Excellence Award (2014 2018) the Beijing News China Young
Yu Fang Economist Award (2013) the Best Paper Award at the China International Conference in Finance 2013 and the Best Corporate Finance
Paper Award at the 2013 Annual Conference of the Chinese Finance Association of America among others. He is professor of finance
at the China Europe International Business School. He has served as an independent director of the Company since August 25 2025.Currently he is an independent director 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 of engineering professoriate 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
Lu Hanzhong Changxing 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.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 master professoriate 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 Heavy Industries Co.Li Yiming 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. He has served as chief engineer of the Company since February 18
2025 and as vice president of the Company since May 28 2025. Currently he is vice president and chief engineer of the Company.ANNUAL REPORT 2025
Name Main working experiences
Born in 1962 male bachelor professoriate senior accountant. He began his career in August 1985 and successively served as an officer
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
Zhang Jianxing Shanghai Dredging Co. Ltd. member of the Party Committee deputy general manager and chief financial officer of CHEC Dredging Co.(resigned) Ltd. secretary of 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. director 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
resigned as director of the Company on January 20 2026 due to job adjustment.Zhang Hua Born in 1973 male PhD in Economics associate professor of finance. He successively served as a researcher lecturer and assistant
(resigned) professor at China Europe International Business School. Having served as an independent director of the Company for six consecutive years he ceased to serve as an independent director of the Company on August 25 2025.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
(resigned) 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. He resigned as director of the Company on January 20 2026
due to job adjustment.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 and officers during the reporting period
1. Position at the shareholder entity
√ Applicable Not applicable
Starting date of Expiration date
Name of in-service staff Name of shareholding entity Position
tenure of tenure
Deputy general manager (deputy director
deputy director deputy general manager)
C h i n a C o m m u n i c a t i o n s of the Technology Digitalization and
Liu Feng (resigned) January 2026
Construction Group Co. Ltd. Equipment Business Division (Academician
Office Chief Engineer’s Office New
Industry Business Division) of CCCG
Statement of the position held
in shareholding entity
2. Position at other entities
√ Applicable Not applicable
Name of in- Position held in other Starting date of Expiration date
Name of other entities
service staff entities tenure of tenure
CCCC Financial Leasing Co. Ltd. Director May 2018
Zhu Xiaohuai CCCC Highway Bridges National Engineering Research Centre
Director September 2024
Co. Ltd.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 2024Section IV Corporate Governance Environment and Social
Name of in- Position held in other Starting date of Expiration date
Name of other entities
service staff entities tenure of tenure
Antai College of Economics and Management Shanghai Jiao
Professor doctoral supervisor March 2011
Tong University
Shanghai Tongji Science & Technology Co. Ltd. Independent director April 2020
Xia Lijun
Jiangsu Recbio Technology Co. Ltd. (HKSE-listed) Independent director June 2021
Shanghai Bacai Information Technology Co. Ltd. Executive director April 2018 February 2026
Shenzhen Huitai Medical Equipment Co. Ltd. Independent director November 2019 November 2025
Bian Yongming School of Mechanical Engineering Tongji University Professor doctoral supervisor June 2007
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
China Europe International Business School Professor August 2009
Yu Fang Ningbo Joyson Electronic Corp. Independent director April 2023
Huaqin Technology Co. Ltd. Independent director January 2025
Zhang Jian CCCC Shanghai Equipment Engineering Co. Ltd. Chairman March 2017
Lu Hanzhong Sinoocean Offshore Assets Management Limited Director January 2025
Shen Qiuyuan ZPMC-Red Box Energy Services Limited Chairman August 2021
CCCC Highway Bridges National Engineering Research Centre
Deputy general manager January 2025
Co. Ltd.CCCC National Engineering Research Center of Dredging
Li Yiming Director June 2025Technology and Equipment Co. Ltd.Shanghai Zhenhua Heavy Industries Technology Co. Ltd. Director June 2024
Shanghai Zhenhua Heavy Industries Technology Co. Ltd. General manager June 2024 July 2025
Zhang Hua China Europe International Business School Vice professor July 2016
(resigned) Chengdu Qushui Science and Technology Co. Ltd. Independent director December 2019 January 2026
Statement of the
position held in
other entities
(III) Remuneration of directors and officers
√ Applicable Not applicable
The remuneration of directors is submitted to the Board of Directors for review and
approval after obtaining the consent of the Remuneration and Appraisal Committee
Decision-making process for the remuneration of directors and
of the Board of Directors and is approved by the General Meeting of Shareholders.officers
The remuneration of officers is approved by the Board of Directors after obtaining the
consent of the Remuneration and Appraisal Committee of 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 and officers of the Company during the reporting
the remuneration of directors and officers period were legal compliant and reasonable.For directors and officers receiving remuneration from the Company the basic salary
plus performance bonus is assessed in combination with the quantitative index of
Basis for deciding the remuneration of directors and officers production and operation etc. For Directors receiving remuneration from affiliates
of the Company annual remuneration is determined by the relevant affiliates.Independent directors of the Company receive a fixed annual allowance.See the “Changes in shares held by current and resigned directors and officers duringActual payout of remuneration for directors and officersthe reporting period and their remunerations” in this section for details.Total remuneration actually obtained by all directors and officers
RMB 14736000
at the end of the reporting periodANNUAL REPORT 2025
Assessment basis and completion status for the remuneration Remuneration was administered implemented and assessed in accordance with the
actually received by all directors and officers at the end of the Company’s relevant remuneration management policies for directors and officers. The
reporting period allowance paid to independent directors is not subject to performance assessment.The remuneration actually paid included deferred compensation components
Deferred payment arrangements for the remuneration actually
primarily consisting of the 2024 annual performance bonus tenure incentive awards
received by all directors and officers at the end of the reporting
for the 2022-2024 term and the 2023 outstanding enterprise assessment award. The
period
independent directors’ allowance is not subject to deferred payment arrangements.Forfeiture and clawback arrangements for the remuneration
actually received by all directors and officers at the end of the No forfeiture or clawback of remuneration occurred during the reporting period.reporting period
(IV) Change in directors and officers of the Company
√ Applicable Not applicable
Name Position Change Reason of change
Wang Cheng Employee director Elected Job adjustment
Yu Fang Independent director Elected Appointment
Li Yiming Vie President & Chief Engineer Engaged Job adjustment
Wang Cheng Director Resigned Job adjustment
Zhang Jianxing Director Resigned Job adjustment
Completion of the maximum six-year consecutive term of service
Zhang Hua Independent director Resigned
as an independent director
Liu Feng Vice president Resigned Job adjustment
Shan Jianguo Vie President & Chief Engineer Resigned Retirement
(V) Punishments by securities regulatory authority in recent three years
Applicable √ Not applicable
(VI) Others
Applicable √ Not applicable
IV. Duty performance of directors
(I) Attendance of the directors at the board meetings and the general meeting of shareholders
Attendance
Attendance at Board Meetings at the general meeting of
Independent shareholders
Director Name director or Times of Personal Times of
not meetings Times of Times of Times of
should be personal attendance by attendance Times of
absence attendance at
through a absence for two the general attended in attendance telecommunication
this year proxy
consecutive meeting of
times shareholders
You Ruikai No 10 10 1 0 0 No 3
Zhu Xiaohuai No 10 10 2 0 0 No 2
Wang Cheng No 10 10 1 0 0 No 3
Li Zhen No 10 10 3 0 0 No 2
Zhang Xue No 10 10 1 0 0 No 3
Xia Lijun Yes 10 10 2 0 0 No 3
Bian Yongming Yes 10 10 1 0 0 No 3
Du Wenli Yes 10 10 4 0 0 No 2Section IV Corporate Governance Environment and Social
Attendance
Attendance at Board Meetings at the general meeting of
Independent shareholders
Director Name director or Times of Times of Personal Times of not meetings Times of Times of
should be personal attendance by attendance Times of
absence attendance at
attended in attendance telecommunication through a absence
for two the general
this year proxy
consecutive meeting of
times shareholders
Yu Fang Yes 4 4 0 0 0 No 1
Zhang Jianxing
(resigned) No 10 10 2 0 0 No 2
Zhang Hua
(resigned) Yes 6 6 3 0 0 No 2
Explanations for personal absence from the meeting for two consecutive times
Applicable √ Not applicable
Times of the board meetings convened in current year 10
Including:
Times of meetings convened through telecommunication 1
Times of meetings convened on-site and through telecommunication 9
(II) Objections raised by directors on matters of the Company
Applicable √ Not applicable
(III) Others
Applicable √ Not applicable
V. Committees under the Board of Directors
√ Applicable Not applicable
(I) Members of committees under the Board of Directors
Category of committees Members
Strategy committee You Ruikai Zhu Xiaohuai Xia Lijun Bian Yongming
Nominating committee You Ruikai Wang Cheng Bian Yongming Du Wenli Yu Fang
Remuneration and appraisal committee Du Wenli Zhang Xue Xia Lijun Yu Fang
Audit and risk committee Xia Lijun Zhang Xue Bian Yongming Du Wenli Yu Fang
Note:
1. On March 27 2025 the Company held the tenth meeting of the Ninth Board of Directors at which it approved the appointment of Mr. Zhu Xiaohuai
Director as a member of the Strategy Committee and Mr. Zhang Xue Director as a member of the Remuneration and Appraisal Committee and the Audit
Committee.
2. On August 25 2025 Mr. Zhang Hua resigned as chairman of the Remuneration and Appraisal Committee member of the Nomination Committee and
member of the Audit and Risk Committee under the Board of Directors upon the expiration of his maximum six-year consecutive term of service as an
independent director of the Company.
3. On August 29 2025 the Company held the fifteenth meeting of the Ninth Board of Directors at which it approved the appointment of Ms. Du Wenli
Independent Director as chairwoman of the Remuneration and Appraisal Committee under the Board of Directors and Mr. Yu Fang Independent Director
as a member of the Nomination Committee the Remuneration and Appraisal Committee and the Audit and Risk Committee under the Board of Directors.
4. On January 20 2026 Mr. Zhang Jianxing resigned from his positions as a member of the Strategy Committee and the Remuneration and Appraisal
Committee under the Board of Directors due to job adjustment.
5. During the reporting period the Audit Committee of the Company was renamed the Audit and Risk Committee.ANNUAL REPORT 2025
(II) 7 meetings convened by the audit and risk committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of dutiesReviewed the “Proposal on the 2024 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 26 2025the Audit Committee” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the 2025 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 27 2025Quarterly Report of the Company” and other proposals unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the Registration and 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 reMay 28 2025Issuance of Super Short-term Financing Bills” unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the Transfer of theA l l p ro p o s a l s a t t h i s m e e t i n g we re
July 22 2025 Entire Equity Interest in CCCC Photovoltaic and the Related
unanimously reviewed and approved.Party Transaction”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 29 2025 Summary of 2025 Semi-Annual Report of the Company” and
unanimously reviewed and approved.other proposalsReviewed the “Proposal on Reviewing the Company’s Profit 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 reSeptember 25 2025Distribution Plan for the First Half of 2025” unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the 2025 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 2025Quarterly Report of the Company” unanimously reviewed and approved.(III) 3 meetings convened by the nominating committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of dutiesReviewed the “Proposal on Reviewing the Appointment of Mr. Al l proposals at this meet ing wereFebruary 19 2025Li Yiming as Chief Engineer” unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the Appointment of Mr. Al l proposals at this meet ing wereMay 28 2025Li Yiming as Deputy General Manager of the Company” unanimously reviewed and approved.Reviewed the “Proposal on Reviewing the Additional Election Al l proposals at this meet ing wereJuly 22 2025of Independent Directors into the Ninth Board of Directors” unanimously reviewed and approved.(IV) 4 meetings convened by the remuneration and appraisal committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of duties
A l l p r o p o s a l s a t t h i s m e e t i n g w e r e
reviewed and approved. Members of theReviewed the “Proposal on Reviewing the Remuneration ofMarch 26 2025 Remuneration and Appraisal CommitteeDirectors of the Company for 2024” and other proposals
abstained from voting when reviewing
matters relating to their own remuneration.Reviewed the “Proposal on Reviewing the Adjustment to theA l l p r o p o s a l s a t t h i s m e e t i n g w e r e
August 29 2025 Exercise Price of the Grant of Stock Options under the 2023
unanimously reviewed and approved.Stock Option Incentive Plan” and other proposalsReviewed the “Proposal on Reviewing Responsibility AgreementA l l p r o p o s a l s a t t h i s m e e t i n g w e r e
September 25 2025 for 2025 Annual Business Performance of the Management
unanimously reviewed and approved.Team” and other proposalsReviewed the “Proposal on the Assessment Results andA l l p r o p o s a l s a t t h i s m e e t i n g w e r e
December 25 2025 Application of the Business Performance of the Management
unanimously reviewed and approved.Team for 2024 and the 2022-2024 Term of Office”Section IV Corporate Governance Environment and Social
(V) 5 meetings convened by the strategy committee during the reporting period
Other performance
Convening date Contents Important comments and suggestions
of dutiesReviewed the “Proposal on Reviewing the ForeignAll proposals at this meeting were unanimously
February 19 2025 Investment for the Establishment of a Subsidiary
reviewed and approved.(Special Purpose Vehicle)”Reviewed the “Proposal on Reviewing the Company’s All proposals at this meeting were unanimouslyMarch 26 2025
2025 Investment Plan” and other proposals reviewed and approved.Reviewed the “Proposal on Reviewing the RegistrationAll proposals at this meeting were unanimouslyApril 27 2025 and Issuance of Perpetual Corporate Bonds in 2025”
reviewed and approved.and other proposalsReviewed the “Proposal on the Investment and All proposals at this meeting were unanimouslyMay 28 2025Establishment of a Wholly-Owned Subsidiary” reviewed and approved.Reviewed the “Proposal on Reviewing the EvaluationAll proposals at this meeting were unanimously
October 30 2025 Report on the Implementation of the Company’s 2024
reviewed and approved.Strategic Plan” and other proposals
(VI) Particulars about objections
Applicable √ Not applicable
VI. Description of the risks found by the audit committee
Applicable √ Not applicable
The audit committee has no objection to the supervision matters during the reporting period.VII. 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 2278
Number of in-service employees of the main subsidiaries 5657
Total of in-service employees 7935
Number of retired employees required to be paid by the parent company
8
and its major subsidiaries
Functions
Category Number of staff
Production staff 3811
Sales staff 380
Technical staff 2656
Financial staff 207
Administrative staff 881
Total 7935
Education background
Education level Number (person)
Master and above 1025
Undergraduate 4383
Junior College 1431
Below Junior College 1096
Total 7935ANNUAL REPORT 2025
(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
The Company vigorously implemented its “11466” talent strategy. Addressing both strategic development requirements
and employee development needs the Company sharpened the precision and efficacy of education and training. Aligned
with annual targets and key tasks it refined the “New Voyage” talent development program through tiered categorized
and targeted instruction. These efforts have fortified the Company’s core functions and competitiveness with robust
talent pipelines and sustained brainpower.(IV) Labor outsourcing
√ Applicable Not applicable
Total of labor outsourcing hours 1770000 hours
Total of labor outsourcing remuneration (RMB 10000) 13230.28
VIII. 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
On May 28 2025 the 2024 Annual General Meeting of Shareholders of the Company reviewed and approved the profit
distribution plan for 2024. The profit distribution plan for 2024 of the Company was as follows: to distribute a cash
dividend of RMB 0.055 (tax included) per share to all shareholders based on the total share capital registered on the
record date for the implementation of the equity distribution. The Company will not convert capital reserve into sharecapital or grant bonus shares for 2024. Details of the above profit distribution matters are set out in the “Announcementof the Annual Profit Distribution Plan for 2024” published by the Company on the Shanghai Securities News China
Securities Journal 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 2024.On August 25 2025 the 2025 First Extraordinary General Meeting of Shareholders of the Company reviewed and
approved the “Proposal on Reviewing the Amendments to the Articles of Association of the Company”. 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 November 17 2025 the 2025 Second Extraordinary General Meeting of Shareholders of the Company reviewed
and approved the profit distribution plan for the first half of 2025. The Company’s profit distribution plan for the first
half of 2025 was as follows: to distribute a cash dividend of RMB 0.02 (tax included) per share to all shareholders based
on the total share capital registered on the record date for the implementation of the equity distribution (excluding
shares held in the Company’s designated securities repurchase account). The Company will not convert capital reserve
into share capital or grant bonus shares for the first half of 2025. Details of the above profit distribution are set out in
the “Announcement on the Profit Distribution Plan for the First Half of 2025” published by the Company in ShanghaiSection IV Corporate Governance Environment and Social
Securities News China Securities Journal and on the website of the Shanghai Stock Exchange (www.sse.com.cn). In
January 2026 the Company completed the implementation of profit distribution plan for the first half of 2025.To deliver reasonable returns to shareholders and strengthen their investment confidence a profit distribution plan
for 2025 has been proposed based on the Company’s performance in 2025: to distribute a cash dividend of RMB
0.055 (tax included) per share to all shareholders based on the total share capital registered on the record date for the
implementation of the equity distribution (excluding shares held in the Company’s designated securities repurchase
account). Cash dividends payable to holders of B-shares will be paid in U.S. dollars and converted at the central parity
exchange rate of U.S. dollars against Renminbi announced by the People’s Bank of China on the first business day
following the date of the resolution of the Company’s 2025 Annual General Meeting of Shareholders in accordance with
the Detailed Rules for the Implementation of the Provisions on Domestically Listed Foreign Shares of Joint Stock Limited
Companies. The Company will not convert capital reserve into share capital or grant bonus shares for 2025.As of March 30 2026 the Company’s total share capital was 5268353501 shares. After deducting 11791762 A-shares
held in the Company’s designated securities repurchase account the base for distribution was 5256561739 shares on
which basis the proposed total cash dividend amounts to RMB 289110895.65 (tax included). Should the Company’s total
share capital change prior to the record date for the implementation of the equity distribution the Company intends to
maintain the cash dividend per share unchanged and adjust the total amount of the distribution accordingly.The proposed profit distribution plan is subject to approval at the Company’s 2025 Annual General Meeting of
Shareholders.(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 meeting of shareholders √ Yes No
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 rights and interests are
√ Yes No
fully protected
(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: RMB Currency: CNY
Number of bonus shares per 10 shares (share) -
Number of dividends per 10 shares (RMB) (taxes included) 0.75
Number of shares converted by capital reserve per 10 shares (share) -
Amount of cash dividends (including tax) 394348574.43
Net profits attributable to the listed company common shareholders in consolidated statements (%) 731841793
Ratio of cash dividends to the net profits attributable to common shareholders of the listed
53.88
company in the consolidated statement (%)
Amount of cash dividends from repurchase of shares 29006008.72ANNUAL REPORT 2025
Total amount of cash dividends (tax included) 423354583.15
Ratio of the total amount of cash dividends to the net profits attributable to common shareholders
57.85
of the listed company in the consolidated statement (%)
(V) Cash dividend distributions for the last three fiscal years
√ Applicable Not applicable
Unit: RMB Currency: CNY
Total cash dividends for the last three fiscal years (tax included) (1) 947525692.04
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 fiscal years (3) = (1) + (2) 947525692.04
Average annual net profit for the last three fiscal years (4) 595114878.33
Cash dividend payout ratio (%) for the last three fiscal years (5) = (3)/(4) 159.22
Net profits attributable to common shareholders of the listed company in the consolidated financial
731841793
statements for the previous fiscal year
Undistributed profits at the end of the most recent fiscal year according to the parent company’s financial
2688785230
statements
IX. 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 applicable
Summary of events Query indexOn January 4 2025 the Company disclosed the “Announcement on the Granting Results of the See the relevant announcement (Extraordinar yReserved Grant under the 2023 Stock Option Incentive Plan” according to which the Company Announcement No. 2025-001) disclosed by the
had completed the reserved grant registration process granting a total of 3.66 million stock Company on the website of the Shanghai Stock
options to 16 eligible participants at the exercise price of RMB 4.00 per share with the reserved Exchange (www.sse.com.cn) and designated information
grant registration date being December 26 2024. disclosure media on January 4 2025 for details.On August 29 2025 the Company held the fifteenth meeting of the Ninth Board of Directorswhich reviewed and approved the “Proposal on Reviewing the Adjustment to the Exercise Priceof the Grant of Stock Options under the 2023 Stock Option Incentive Plan” the “Proposal onReviewing the Cancellation of Certain Stock Options under the Company’s 2023 Stock Option See the relevant announcements (ExtraordinaryIncentive Plan” and other related proposals. It was approved that the exercise price of the stock Announcement No. 2025-038 2025-040 2025-041)
options initially granted under the incentive plan be adjusted to RMB 3.205 per share and that disclosed by the Company on the website of the
of the reserved granted stock options be adjusted to RMB 3.945 per share; it was also approved Shanghai Stock Exchange (www.sse.com.cn) and
to cancel a total of 850000 stock options that had been granted but remained unexercised designated information disclosure media on August 30by 3 incentive participants. The Company simultaneously disclosed the “Announcement on 2025 for details.Adjustment of the Exercise Price of Stock Options Granted under the Company’s 2023 StockOption Incentive Plan” and the “Announcement on the Cancellation of Certain Stock Optionsunder the Company’s 2023 Stock Option Incentive Plan”.(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 applicableSection IV Corporate Governance Environment and Social
Other incentives
Applicable √ Not applicable
(III) Equity incentives awarded to the directors and officers during the reporting period
√ Applicable Not applicable
Unit: Share
Number of Number of
Number Number of Number of Market
New Stock Shares Acquired Exercise
of Stock Exercisable Stock Options Price at the
Options Through Price of
Options Shares Held at the End of the
Name Position Granted Exercising Stock Stock
Held at the During the End of the Reporting
During the Option During Options
Beginning Reporting Reporting Period
Reporting the Reporting (RMB)
of the Year Period Period (RMB)
Period Period
You Ruikai Director & Chairman 450000 0 0 0 3.945 450000 5.15
Director & General
Zhu Xiaohuai 510000 0 0 0 3.205 510000 5.15
Manager (President)
Wang Cheng Employee Director 410000 0 0 0 3.205 410000 5.15
Zhang Jian Vice President 410000 0 0 0 3.205 410000 5.15
Vice President & Chief
Li Ruixiang 410000 0 0 0 3.205 410000 5.15
Economist
Chief Legal Counsel
& Board Secretary
Sun Li 410000 0 0 0 3.205 410000 5.15
& Chief Compliance
Officer
Lu Hanzhong Vice President 410000 0 0 0 3.205 410000 5.15
Shen
Vice President 410000 0 0 0 3.205 410000 5.15
Qiuyuan
Vice President & Chief
Li Yiming 350000 0 0 0 3.205 350000 5.15
Engineer
Liu Feng
Vice President 410000 0 0 0 3.205 410000 5.15
(resigned)
Total / 4180000 0 0 0 / 4180000 /
(IV) Establishment and implementation of the assessment mechanism and incentive mechanism for
officers 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 and officers in a manner as specified having basically established a comprehensive
mechanism for the cultivation selection supervision assessment reward and punishment and constraints of officers
based on its actual conditions and formulated corresponding management regulations. Officers 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 registration procedures for the initial grant and the reserved grant were completed on August 8 2024 and
December 26 2024 respectively.ANNUAL REPORT 2025
X. 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.The Company integrated the business systems and the management flow into the control requirements of the
internal control system and continuously improved the internal control risk and compliance management systems
such as “Management Measures for the Construction and Supervision of the Internal Control System” “Regulationson Comprehensive Risk Management” “Regulations on Compliance Management” and “Regulations on ReportingSignificant Business Risk Events” and formulated a power and responsibility manual for specific management areas to
make clear the control points and approval procedures of various operation and management matters and improved the
mechanisms for ex ante interim and ex post risk control 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 as well as the Company’s internal control
management systems and requirements and taking into account its own structure and characteristics the Company
conducted a comprehensive evaluation of the reasonableness of its internal control design and the operational
effectiveness across key elements including the internal environment risk assessment control activities information and
communication and internal supervision. This process aimed to timely identify potential deficiencies or weaknesses at
all levels further strengthen and standardize the development of the Company’s internal control system and enhance
both management quality and risk prevention capabilities. Meanwhile the Company engaged an external professional
audit firm to conduct annual internal control audits. Through these external audits and in alignment with internal
control requirements the Company effectively identified assessed controlled monitored and improved upon risks. This
approach served to organically integrate risk management internal control and daily operational activities effectively
controlling and preventing various types of risks to ensure the Company’s sustained and stable development.Description of material deficiencies in internal control during the reporting period
Applicable √ Not applicable
XI. 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.Risk warning regarding abnormalities in the management and control of subsidiaries
Applicable √ Not applicable
XII. 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 2025 and issued a standard unqualified opinion on the internal control audit
report (see the announcement published on the website of Shanghai Stock Exchange on the same day as this report for
details).Section IV Corporate Governance Environment and Social
Audit report on internal control disclosed or not: Yes
Opinion type of internal control audit report: standard unqualified opinion
XIII. Remediation of problems identified by self-inspection in the special action on the
governance of listed companies
None
XIV. Environmental information of the listed company and its main subsidiaries included in
the list of enterprises subject to mandatory environmental information disclosure
√ Applicable Not applicable
Number of enterprises included in the list of enterprises subject to mandatory
8
environmental information disclosure
Reference index for the environmental information disclosure
No. Enterprise name
report
Shanghai Zhenhua Heavy Industries Co. Ltd. Changxing Branch (abbreviated
as ZPMC Changxing Branch)
2 Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. System on Corporate Environmental Information Disclosed in
Shanghai Zhenhua Heavy Industries Port Machinery General Equipment Co. accordance with the Law
3
Ltd. https://e2.sthj.sh.gov.cn/jsp/view/hjpl/index.jsp
Shanghai Port Machinery Heavy Industries Co. Ltd. (abbreviated as Port
4
Machinery Heavy Industries)
5 Shanghai Zhenhua Heavy Industries Co. Ltd. Nantong Branch
Nantong Zhenhua Heavy Equipment Manufacturing Co. Ltd. (abbreviated as Jiangsu Enterprise “Environmental Protection Profile” Information
6
ZPMC Heavy Equipment) Disclosure Platform
http://ywxt.sthjt.jiangsu.gov.cn:18181/spsarchive-webapp/web/
Shanghai Zhenhua Heavy Industries Group (Nantong) Transmission Machinery
7 viewRunner.htmlviewId=http://218.94.78.91:18181/spsarchive-
Co. Ltd. (abbreviated as ZPMC Transmission) webapp/web/sps/views/yfpl/views/home/index.js
8 ZPMC Qidong Marine Engineering Co. Ltd.
Other description
√ Applicable Not applicable
In 2025 the Company fully implemented Xi Jinping Thought on Ecological Civilization and acted resolutely on
the “Two Mountains” philosophy — that lucid waters and lush mountains are invaluable assets. It tightened and
enforced accountability for environmental protection at all levels driving environmental management toward greater
systematization and refinement. First it improved the management system. The Measures for Environmental Protection
Supervision and Management were revised and two corporate standards on particulate matter and hazardous waste
management were issued strengthening institutional guidance and systemic support. Second it enhanced the training
system. The Company undertook the development of CCCG’s mandatory courses and equipment-manufacturing
specialized curricula. Nearly 200 management personnel obtained certification through the Group’s mandatory programs.Over the year 8 energy conservation and environmental protection training sessions were held totaling 114 credit hours
significantly improving the professional competence of environmental management personnel. Third it intensified
compliance screenings. Routine environmental supervision and inspection were carried out and a mechanism for
identifying environmental risks and hazards with closed-loop rectification was established ensuring lawful and compliant
production and operations with controllable risks. Fourth it advanced demonstration initiatives. ZPMC Heavy Equipment
and Port Machinery Heavy Industries were recognized as Provincial Green Factories. ZPMC Transmission and ZPMC Heavy
Equipment obtained Class A Environmental Performance ratings for key industries in Jiangsu Province and ZPMC Heavy
Equipment was named an Advanced Intelligent Factory in Jiangsu. ZPMC Changxing Branch received the Outstanding
Collective Award for Pollution and Carbon Reduction in Chongming District Shanghai. Across the Company 4 units
were recognized as CCCG Environmental Protection Outstanding Teams and 14 environmental management personnel
as Environmental Protection Pacesetters. Approximately RMB 2.2 million in special funds for energy conservation and
environmental protection were secured delivering notable demonstration effects.ANNUAL REPORT 2025
In 2025 the Company adopted multiple simultaneous measures to systematically advance carbon emission reduction
achieving significant results. First it optimized the energy mix and expanded green power use.The Company actively
promoted the use of green and clean energy. Rooftop distributed PV systems were installed at production units enabling
on-site consumption of 34.47 million kWh of PV power and reducing CO2 emissions by 18500 tons. The Company
also participated actively in green power trading with the Headquarters office building and ZPMC Changxing Branch
procuring 9.081 million kWh of green electricity markedly raising the Company’s green power consumption ratio.Second it leveraged technological retrofits to tap energy-saving potential.The Phase I Vacuum Carburizing Project and
the energy-saving renovation of the 4.5 m steel plate pretreatment line were implemented saving 185 tons of standard
coal equivalent annually. The retrofit and customization of nozzle rings for marine main engine turbochargers were
completed saving approx. 193.9 tons of fuel and reducing CO2 emissions by approx. 592 tons per year. Third it built a
digital platform to enhance management efficiency.The Company’s self-developed Energy and Carbon Management
Platform was commissioned for trial operation enabling online real-time collection efficient analysis and dynamic
control of consumption data for water electricity gas and other utilities providing technical support for company-wide
coordinated energy and carbon management. Fourth it built exemplary benchmarks and promoted best practices.Underthe demonstration program the “Research and Application of Intelligent Energy-Saving Control Technology for VOCsWaste Gas Treatment Systems” of ZPMC Changxing Branch and the “Main Engine Cylinder Warming System ImprovementProject” of Shanghai Zhenhua Shipping Co. Ltd. were selected as Outstanding Energy Conservation and Emission
Reduction Cases in Shanghai.XV. 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 2025 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
Amount/content Description
welfare projects
Total investment (RMB 10000) 84.96 Directly provide free donations for financial support to targeted assistance areas.Including: Fund (RMB 10000) 75
Amount equivalent to goods
9.96
and materials (RMB 10000)
This figure represents the estimated number of direct beneficiaries across various
donation categories including education support (schools) revitalization through
organizations (communities) public welfare projects (villages and towns) and
Number of people benefited (person) 12000
employment assistance (transferred labor force). The number of people benefiting from
projects such as consumption assistance and “aiding Xinjiang with work clothes” cannot
be directly counted.Specific description
√ Applicable Not applicable
In 2025 guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era the Company implemented
fully General Secretary Xi Jinping’s key directives on agriculture rural areas and farmers. It complied rigorously with
SASAC’s deployment requirements for designated assistance and advanced its support programs in Lanping County
Yunnan Province in a steady and substantive manner. Total investment in external donations and public welfare initiatives
reached RMB 849600 for the year. Specifically RMB 250000 was allocated to the CCCC Cuiping Street Nine-Year School
construction project in Lanping County to solidify the educational foundation; RMB 220000 directed to the water supplySection IV Corporate Governance Environment and Social
protection upgrade project in Gaoping Village to improve local welfare infrastructure; RMB 230000 provided for the
procurement of teaching equipment for the sheet metal fabrication workshop at Lanping Secondary Vocational and
Technical School to support vocational education; RMB 50000 contributed to Yong’an Community a Party-building
twinning partner for community development to strengthen revitalization through organizations and support Party
building in the relocated community; outdoor sports equipment valued at RMB 99600 donated to Zhenhua Kindergarten
in Tu’e Township to focus on educational improvement in the township.XVI. 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 (RMB 10000) 374.3 assistance funds purchase and sale of agricultural products and ordering of work
clothes from targeted assistance areas etc.Including: Fund (RMB 10000) 75 Directly provide financial support to targeted assistance areas.Amount equivalent to goods Include purchase and sale of agricultural products in targeted assistance areas
299.3
and materials (RMB 10000) ordering
This figure represents the estimated number of direct beneficiaries across various
donation categories including education support (schools) revitalization through
organizations (communities) public welfare projects (villages and towns) and
Number of people benefited (person) 12000
employment assistance (transferred labor force). The number of people benefitingfrom projects such as consumption assistance and “aiding Xinjiang with workclothes” cannot be directly counted.Investigation and guidance The Company conducted on-site survey held meetings to deploy assistance
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 initiatives invested funds helped create job opportunities trained grassroots
development of local industr y
and employment support cadres and rural revitalization leaders paired 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
consumption assistance Committee purchased and sold agricultural products and customized work clothes
improving education)
Party building pairing from targeted assistance areas etc.Specific description
√ Applicable Not applicable
In 2025 the Company’s Party Committee earnestly 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”
“revitalization through organizations” and “industry revitalization”. From October 9 to 11 2025 the Company conducted
a special research visit on rural revitalization in Lanping County and Lincang City Yunnan Province during which the
Party Branch of the Party Affairs Department at the Company’s headquarters renewed the Party-building partnership
agreement with the Party Committee of Yong’an Community in Lanping County. Training programs delivered in Lanping
County reached 110 grassroots managers 45 rural revitalization leaders and 45 technical professionals over the year.The Company deepened collaboration with Lincang Technician College by launching the “Zhenhua Offshore EquipmentTalent Class.” This initiative marked a strategic shift from basic labor cooperation and internships toward collaborative
education and targeted talent cultivation. ZPMC Changxing Branch facilitated stable employment for 305 transferred
workers from assisted regions all of whom maintained consistent roles throughout the year.XVII. Others
Applicable √ Not applicableANNUAL REPORT 2025
Section V 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
background type party Commitment contents
Commitment time limit for Commitment commitment reasons for in case of
time commitment term completed in failure of failure of
performance time commitment commitment
performance performance
No loans loan guarantees or any
other form of financial support will be Termination
Others Company provided to the incentive objects for the December 26 Yes date of Yes N/A N/A
exercise of stock options granted under 2023 incentive plan
this incentive plan.If the Company has false records
Commitments misleading statements or major
related omissions in the information disclosure
to equity documents resulting in non-compliance
incentives with the grant of equity or the exercise
Others Incentive of equity arrangements the incentive December 26
Termination
object objects shall return all the benefits 2023 Yes date of Yes N/A N/A
obtained from this incentive plan to the incentive plan
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) Commitments on the business performance
Applicable √ Not applicable
Change of commitments on the business performance:
Applicable √ Not applicable
Other description
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 applicableSection V Important EventsIV. Explanation of the Board of Directors for Accounting Firm’s “auditors’ report withnonstandard opinions”
Applicable √ Not applicable
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 accounting firm
Applicable √ Not applicable
(IV) Approval procedures and other explanations
Applicable √ Not applicable
VI. Engagement and dismissal of the accounting firm
Unit: RMB 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 10
Name of Certified Public Accountant of the domestic accounting firm You Fei Huang Hongwei
Cumulative years of audit services provided by CPAs of the domestic accounting firm 1 2
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 11th meeting of the Ninth Board of Directors held on April 27 2025 and the 2024 Annual General Meeting ofShareholders held on May 28 2025 the Company reviewed and approved the “Proposal on the Engagement of DomesticAudit Accounting Firm for the Year 2025” and agreed to renew the engagement of Ernst & Young Hua Ming LLP as the
domestic auditing firm of the Company for the year 2025.Description of the change of accounting firm during the audit period
Applicable √ Not applicable
Explanation of audit fees decreased by 20% or more compared with the previous year
Applicable √ Not applicableANNUAL REPORT 2025
VII. Delisting risk
(I) Reasons for the delisting risk warning
Applicable √ Not applicable
(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.X. Punishments on the Company as well as its directors officers 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 party transactions
(I) Related party 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 10th meeting of the Ninth Board of Directors of the Company held on March 27 2025 and the 2024 Annual GeneralMeeting of Shareholders held on May 28 2025 the Company reviewed and approved the “Proposal on Reviewing theSigning of Framework Agreement on Routine Related Party Transactions for 2025-2027” which had been announced and
was detailed in Extraordinary Announcement No. 2025-007 2025-011 and 2025-022.Section V Important Events
Unit: RMB Currency: CNY
Pricing Proportion in Reason or great
Type of Settlement
Content of principle Price of Amount of the amount differences
related mode of
Related party Relationship related party of related related party related party of similar Market price between the
party related-party
transaction party transaction transaction transactions bargain price and
transaction transaction
transaction (%) market price
CCCC National
Engineering Research S u b s i d i a r y o f Project Pricing
Sales of Monetary
Center of Dredging t h e h o l d i n g income/ lease based on 1664018764 1664018764 4.59 1664018764 /
goods funds
Technology and parent company of assets market price
Equipment Co. Ltd.S u b s i d i a r y o f Project Pricing
CCCC Financial Leasing Sales of Monetary
t h e h o l d i n g income/ lease based on 231970938 231970938 0.64 231970938 /
Co. Ltd. goods funds
parent company of assets market price
CCCC Haifeng Wind S u b s i d i a r y o f Project Pricing
Sales of Monetary
Power Development t h e h o l d i n g income/ lease based on 228672566 228672566 0.63 228672566 /
goods funds
Co. Ltd. parent company of assets market price
CCCC Electrical S u b s i d i a r y o f Project Pricing
Sales of Monetary
and Mechanical t h e h o l d i n g income/ lease based on 113491947 113491947 0.31 113491947 /
goods funds
Engineering Co. Ltd. parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Third Harbor Sales of Monetary
t h e h o l d i n g income/ lease based on 109702142 109702142 0.30 109702142 /
Engineering Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC First Harbor Sales of Monetary
t h e h o l d i n g income/ lease based on 85609701 85609701 0.24 85609701 /
Engineering Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Second Highway Sales of Monetary
t h e h o l d i n g income/ lease based on 63630673 63630673 0.18 63630673 /
Engineering Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
Zhenhua Engineering Sales of Monetary
t h e h o l d i n g income/ lease based on 63238232 63238232 0.17 63238232 /
Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Fourth Harbor Sales of Monetary
t h e h o l d i n g income/ lease based on 55964602 55964602 0.15 55964602 /
Engineering Co. Ltd. goods funds
parent company of assets market price
Jiangmen Hangtong
S u b s i d i a r y o f Project Pricing
Shipbuilding Co. Ltd. Sales of Monetary
t h e h o l d i n g income/ lease based on 33828357 33828357 0.09 33828357 /
of CCCC Fourth Harbor goods funds
parent company of assets market price
Engineering Co. Ltd.S u b s i d i a r y o f Project Pricing
Road & Bridge Sales of Monetary
t h e h o l d i n g income/ lease based on 29983631 29983631 0.08 29983631 /
International Co. Ltd. goods funds
parent company of assets market price
CCCC Tianhe
Mechanical S u b s i d i a r y o f Project Pricing
Sales of Monetary
Equipment t h e h o l d i n g income/ lease based on 29575231 29575231 0.08 29575231 /
goods funds
Manufacturing Co. parent company of assets market price
Ltd.S u b s i d i a r y o f Project Pricing
CCCC Tianjin Dredging Sales of Monetary
t h e h o l d i n g income/ lease based on 24278245 24278245 0.07 24278245 /
Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
China Harbour Sales of Monetary
t h e h o l d i n g income/ lease based on 21720388 21720388 0.06 21720388 /
Engineering Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Third Highway Sales of Monetary
t h e h o l d i n g income/ lease based on 16384376 16384376 0.05 16384376 /
Engineering Co. Ltd. goods funds
parent company of assets market price
CCCC Road & S u b s i d i a r y o f Project Pricing
Sales of Monetary
Bridge South China t h e h o l d i n g income/ lease based on 15411948 15411948 0.04 15411948 /
goods funds
Engineering Co. Ltd. parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Photovoltaic Sales of Monetary
t h e h o l d i n g income/ lease based on 7800702 7800702 0.02 7800702 /
Technology Co. Ltd. goods funds
parent company of assets market price
CCCC Worldcom S u b s i d i a r y o f Project Pricing
Sales of Monetary
(Chongqing) Heavy t h e h o l d i n g income/ lease based on 3936655 3936655 0.01 3936655 /
goods funds
Industries Co. Ltd. parent company of assets market price
CCCC Shanghai S u b s i d i a r y o f Project Pricing
Sales of Monetary
Equipment t h e h o l d i n g income/ lease based on 3072567 3072567 0.01 3072567 /
goods funds
Engineering Co. Ltd. parent company of assets market price
S u b s i d i a r y o f Project Pricing
Sales of Monetary
Chuwa Bussan Co. Ltd. t h e h o l d i n g income/ lease based on 1719102 1719102 0.00 1719102 /
goods funds
parent company of assets market priceANNUAL REPORT 2025
Pricing Proportion in Reason or great
Type of Settlement
Content of principle Price of Amount of the amount differences
related mode of
Related party Relationship related party of related related party related party of similar Market price between the
party related-party
transaction party transaction transaction transactions bargain price and
transaction transaction
transaction (%) market price
CCCC Water
S u b s i d i a r y o f Project Pricing
Transportation Sales of Monetary
t h e h o l d i n g income/ lease based on 1599057 1599057 0.00 1599057 /
Planning and Design goods funds
parent company of assets market price
Institute Co. Ltd.No.5 Engineering
S u b s i d i a r y o f Project Pricing
Co. Ltd. of CCCC First Sales of Monetary
t h e h o l d i n g income/ lease based on 1451327 1451327 0.00 1451327 /
Harbor Engineering goods funds
parent company of assets market price
Co. Ltd.Road and Bridge
Construction S u b s i d i a r y o f Project Pricing
Sales of Monetary
Chongqing Fengfu t h e h o l d i n g income/ lease based on 1447417 1447417 0.00 1447417 /
goods funds
Expressway parent company of assets market price
Development Co. Ltd.CCCC International S u b s i d i a r y o f Project Pricing
Sales of Monetary
(Hong Kong) Holdings t h e h o l d i n g income/ lease based on 1146433 1146433 0.00 1146433 /
goods funds
Limited parent company of assets market price
Road and Bridge
Construction S u b s i d i a r y o f Project Pricing
Sales of Monetary
Chongqing Fengshi t h e h o l d i n g income/ lease based on 1022015 1022015 0.00 1022015 /
goods funds
Expressway parent company of assets market price
Development Co. Ltd.S u b s i d i a r y o f Project Pricing
Chongqing Zhongwan Sales of Monetary
t h e h o l d i n g income/ lease based on 813205 813205 0.00 813205 /
Expressway Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
Sales of Monetary
Friede & Goldman Llc. t h e h o l d i n g income/ lease based on 456478 456478 0.00 456478 /
goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Guangzhou Sales of Monetary
t h e h o l d i n g income/ lease based on 424528 424528 0.00 424528 /
Dredging Co. Ltd. goods funds
parent company of assets market price
S u b s i d i a r y o f Project Pricing
Yueyang Chenglingji Sales of Monetary
t h e h o l d i n g income/ lease based on 355965 355965 0.00 355965 /
New Port Co. Ltd. goods funds
parent company of assets market price
Project Pricing
Holding parent Sales of Monetary
CCCG income/ lease based on 94340 94340 0.00 94340 /
company goods funds
of assets market price
CCCC Chenzhou S u b s i d i a r y o f Project Pricing
Sales of Monetary
Road Construction t h e h o l d i n g income/ lease based on 83028 83028 0.00 83028 /
goods funds
Machinery Co. Ltd. parent company of assets market price
CCCC Shanghai S u b s i d i a r y o f Project Pricing
Sales of Monetary
Channel Equipment t h e h o l d i n g income/ lease based on 16549 16549 0.00 16549 /
goods funds
Industry Co. Ltd. parent company of assets market price
Chongqing Yongjiang
Expressway S u b s i d i a r y o f Project Pricing
Sales of Monetary
Investment and t h e h o l d i n g income/ lease based on 8891 8891 0.00 8891 /
goods funds
Construction Co. Ltd. parent company of assets market price
of FHEC of CCCC
No.2 Engineering
S u b s i d i a r y o f Project Pricing
Co. Ltd. of CCCC First Sales of Monetary
t h e h o l d i n g income/ lease based on 752 752 0.00 752 /
Harbor Engineering goods funds
parent company of assets market price
Co. Ltd.S u b s i d i a r y o f Project Pricing
CCCC Financial Leasing Rendering Monetary
t h e h o l d i n g income/ lease based on 14164609 14164609 0.04 14164609 /
Co. Ltd. of service funds
parent company of assets market price
China
Communications S u b s i d i a r y o f Project Pricing
Rendering Monetary
Construction t h e h o l d i n g income/ lease based on 8531551 8531551 0.02 8531551 /
of service funds
Company (M) Sdn. parent company of assets market price
Bhd.Project Pricing
Holding parent Rendering Monetary
CCCG income/ lease based on 4339622 4339622 0.01 4339622 /
company of service funds
of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Photovoltaic Rendering Monetary
t h e h o l d i n g income/ lease based on 3625346 3625346 0.01 3625346 /
Technology Co. Ltd. of service funds
parent company of assets market price
China
S u b s i d i a r y o f Project Pricing
Communications Rendering Monetary
t h e h o l d i n g income/ lease based on 2204009 2204009 0.01 2204009 /
Construction of service funds
parent company of assets market price
Company Ltd.Section V Important Events
Pricing Proportion in Reason or great
Type of Settlement
Content of principle Price of Amount of the amount differences
related mode of
Related party Relationship related party of related related party related party of similar Market price between the
party related-party
transaction party transaction transaction transactions bargain price and
transaction transaction
transaction (%) market price
China
Communications S u b s i d i a r y o f Project Pricing
Rendering Monetary
Information t h e h o l d i n g income/ lease based on 1548451 1548451 0.00 1548451 /
of service funds
Technology Group Co. parent company of assets market price
Ltd.CCCC National
Engineering Research S u b s i d i a r y o f Project Pricing
Rendering Monetary
Center of Dredging t h e h o l d i n g income/ lease based on 896226 896226 0.00 896226 /
of service funds
Technology and parent company of assets market price
Equipment Co. Ltd.China Transportation S u b s i d i a r y o f Project Pricing
Rendering Monetary
HEAD New Technology t h e h o l d i n g income/ lease based on 663625 663625 0.00 663625 /
of service funds
Co. Ltd. parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Second Harbor Rendering Monetary
t h e h o l d i n g income/ lease based on 264151 264151 0.00 264151 /
Engineering Co. Ltd. of service funds
parent company of assets market price
CCCC Shanghai S u b s i d i a r y o f Project Pricing
Rendering Monetary
Equipment t h e h o l d i n g income/ lease based on 109679 109679 0.00 109679 /
of service funds
Engineering Co. Ltd. parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Tianjin Dredging Rendering Monetary
t h e h o l d i n g income/ lease based on 94340 94340 0.00 94340 /
Co. Ltd. of service funds
parent company of assets market price
CCCC Xi’an Road S u b s i d i a r y o f Project Pricing
Rendering Monetary
Construction t h e h o l d i n g income/ lease based on 26604 26604 0.00 26604 /
of service funds
Machinery Co. Ltd. parent company of assets market price
S u b s i d i a r y o f Project Pricing
CCCC Shanghai Rendering Monetary
t h e h o l d i n g income/ lease based on 12053 12053 0.00 12053 /
Dredging Co. Ltd. of service funds
parent company of assets market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Third Harbor Monetary
t h e h o l d i n g of labor processing for based on 187545289 187545289 0.60 187545289 /
Engineering Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Tianjin Dredging Monetary
t h e h o l d i n g of labor processing for based on 99522209 99522209 0.32 99522209 /
Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Dredging Monetary
t h e h o l d i n g of labor processing for based on 88619832 88619832 0.28 88619832 /
(Group) Co. Ltd. funds
parent company services the Company market price
China
Communications S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Information t h e h o l d i n g of labor processing for based on 44285359 44285359 0.14 44285359 /
funds
Technology Group Co. parent company services the Company market price
Ltd.S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Third Highway Monetary
t h e h o l d i n g of labor processing for based on 33067274 33067274 0.11 33067274 /
Engineering Co. Ltd. funds
parent company services the Company market price
CCCC Wuhan
S u b s i d i a r y o f Receipt Consigned Pricing
Zhixing International Monetary
t h e h o l d i n g of labor processing for based on 24777205 24777205 0.08 24777205 /
Engineering funds
parent company services the Company market price
Consulting Co. Ltd.Road & Bridge East S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
China Engineering Co. t h e h o l d i n g of labor processing for based on 22707987 22707987 0.07 22707987 /
funds
Ltd. parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC First Highway Monetary
t h e h o l d i n g of labor processing for based on 20294905 20294905 0.06 20294905 /
Engineering Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
Road & Bridge Monetary
t h e h o l d i n g of labor processing for based on 16054006 16054006 0.05 16054006 /
International Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Urban Operation Monetary
t h e h o l d i n g of labor processing for based on 14512701 14512701 0.05 14512701 /
Management Co. Ltd. funds
parent company services the Company market price
CCCC National
Engineering Research S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Center of Dredging t h e h o l d i n g of labor processing for based on 8854717 8854717 0.03 8854717 /
funds
Technology and parent company services the Company market price
Equipment Co. Ltd.ANNUAL REPORT 2025
Pricing Proportion in Reason or great
Type of Settlement
Content of principle Price of Amount of the amount differences
related mode of
Related party Relationship related party of related related party related party of similar Market price between the
party related-party
transaction party transaction transaction transactions bargain price and
transaction transaction
transaction (%) market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Construction Monetary
t h e h o l d i n g of labor processing for based on 5737412 5737412 0.02 5737412 /
Group Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Fourth Harbor Monetary
t h e h o l d i n g of labor processing for based on 5160521 5160521 0.02 5160521 /
Consultants Co. Ltd. funds
parent company services the Company market price
Shanghai
S u b s i d i a r y o f Receipt Consigned Pricing
Communications Monetary
t h e h o l d i n g of labor processing for based on 3974214 3974214 0.01 3974214 /
Construction funds
parent company services the Company market price
Contracting Co. Ltd.CCCC Water
S u b s i d i a r y o f Receipt Consigned Pricing
Transportation Monetary
t h e h o l d i n g of labor processing for based on 2444553 2444553 0.01 2444553 /
Planning and Design funds
parent company services the Company market price
Institute Co. Ltd.S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Xingyu Monetary
t h e h o l d i n g of labor processing for based on 2369417 2369417 0.01 2369417 /
Technology Co. Ltd funds
parent company services the Company market price
Shanghai China
Communications S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Water Transportation t h e h o l d i n g of labor processing for based on 1942264 1942264 0.01 1942264 /
funds
Design & Research Co. parent company services the Company market price
Ltd.S u b s i d i a r y o f Receipt Consigned Pricing
CCCC (Xiamen) Monetary
t h e h o l d i n g of labor processing for based on 1815100 1815100 0.01 1815100 /
Information Co. Ltd funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Property Service Monetary
t h e h o l d i n g of labor processing for based on 1474214 1474214 0.00 1474214 /
Co. Ltd. funds
parent company services the Company market price
No.1 Engineering
S u b s i d i a r y o f Receipt Consigned Pricing
Co. Ltd. of CCCC First Monetary
t h e h o l d i n g of labor processing for based on 770642 770642 0.00 770642 /
Harbor Engineering funds
parent company services the Company market price
Co. Ltd.S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Third Harbor Monetary
t h e h o l d i n g of labor processing for based on 728038 728038 0.00 728038 /
Consultants Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Shanghai Monetary
t h e h o l d i n g of labor processing for based on 697669 697669 0.00 697669 /
Dredging Co. Ltd. funds
parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Photovoltaic Monetary
t h e h o l d i n g of labor processing for based on 480991 480991 0.00 480991 /
Technology Co. Ltd. funds
parent company services the Company market price
Tianjin Port
Engineering Institute S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Co. Ltd. of CCCC First t h e h o l d i n g of labor processing for based on 438113 438113 0.00 438113 /
funds
Harbor Engineering parent company services the Company market price
Co. Ltd.CCCC (Tianjin) Eco-
environmental S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Protection Design & t h e h o l d i n g of labor processing for based on 332075 332075 0.00 332075 /
funds
Research Institute Co. parent company services the Company market price
Ltd.Guizhou CCCC S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Xinglu Expressway t h e h o l d i n g of labor processing for based on 197975 197975 0.00 197975 /
funds
Development Co. Ltd. parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
CCCC Second Harbor Monetary
t h e h o l d i n g of labor processing for based on 154759 154759 0.00 154759 /
Engineering Co. Ltd. funds
parent company services the Company market price
Wuhan Siyuan Xingye S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Real Estate Brokerage t h e h o l d i n g of labor processing for based on 94340 94340 0.00 94340 /
funds
Co. Ltd. parent company services the Company market price
S u b s i d i a r y o f Receipt Consigned Pricing
China Harbour Monetary
t h e h o l d i n g of labor processing for based on 66038 66038 0.00 66038 /
Engineering Co. Ltd. funds
parent company services the Company market price
CCCC Design S u b s i d i a r y o f Receipt Consigned Pricing
Monetary
Consulting Group Co. t h e h o l d i n g of labor processing for based on 35094 35094 0.00 35094 /
funds
Ltd. parent company services the Company market priceSection V Important Events
Pricing Proportion in Reason or great
Type of Settlement
Content of principle Price of Amount of the amount differences
related mode of
Related party Relationship related party of related related party related party of similar Market price between the
party related-party
transaction party transaction transaction transactions bargain price and
transaction transaction
transaction (%) market price
CCCC Shanghai S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Equipment t h e h o l d i n g materials for based on 422729175 422729175 1.35 422729175 /
goods funds
Engineering Co. Ltd. parent company the Company market price
CNPC & CCCC S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Petroleum Sales Co. t h e h o l d i n g materials for based on 63334894 63334894 0.20 63334894 /
goods funds
Ltd. parent company the Company market price
S u b s i d i a r y o f Providing Pricing
CCCC (Xiamen) Purchase of Monetary
t h e h o l d i n g materials for based on 40037649 40037649 0.13 40037649 /
Information Co. Ltd goods funds
parent company the Company market price
Shanghai Zhensha S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Longfu Machinery Co. t h e h o l d i n g materials for based on 35343179 35343179 0.11 35343179 /
goods funds
Ltd. parent company the Company market price
CCCC National
Engineering Research S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Center of Dredging t h e h o l d i n g materials for based on 25544239 25544239 0.08 25544239 /
goods funds
Technology and parent company the Company market price
Equipment Co. Ltd.CCCC Shanghai S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Channel Equipment t h e h o l d i n g materials for based on 19247788 19247788 0.06 19247788 /
goods funds
Industry Co. Ltd. parent company the Company market price
S u b s i d i a r y o f Providing Pricing
CCCC Dredging Purchase of Monetary
t h e h o l d i n g materials for based on 10718766 10718766 0.03 10718766 /
(Group) Co. Ltd. goods funds
parent company the Company market price
S u b s i d i a r y o f Providing Pricing
CCCC Third Harbor Purchase of Monetary
t h e h o l d i n g materials for based on 4987967 4987967 0.02 4987967 /
Engineering Co. Ltd. goods funds
parent company the Company market price
China
Communications S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Information t h e h o l d i n g materials for based on 2815382 2815382 0.01 2815382 /
goods funds
Technology Group Co. parent company the Company market price
Ltd.CCCC Wuhan
S u b s i d i a r y o f Providing Pricing
Zhixing International Purchase of Monetary
t h e h o l d i n g materials for based on 2482982 2482982 0.01 2482982 /
Engineering goods funds
parent company the Company market price
Consulting Co. Ltd.CCCC (Tianjin) Eco-
environmental S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Protection Design & t h e h o l d i n g materials for based on 1826863 1826863 0.01 1826863 /
goods funds
Research Institute Co. parent company the Company market price
Ltd.S u b s i d i a r y o f Providing Pricing
CCCC Xingyu Purchase of Monetary
t h e h o l d i n g materials for based on 1244799 1244799 0.00 1244799 /
Technology Co. Ltd goods funds
parent company the Company market price
China S u b s i d i a r y o f Providing Pricing
Purchase of Monetary
Communications t h e h o l d i n g materials for based on 972123 972123 0.00 972123 /
goods funds
Materials Co. Ltd. parent company the Company market price
S u b s i d i a r y o f Providing Pricing
China Highway Vehicle Purchase of Monetary
t h e h o l d i n g materials for based on 820732 820732 0.00 820732 /
& Machinery Co. Ltd. goods funds
parent company the Company market price
S u b s i d i a r y o f Providing Pricing
CCCC Tianjin Industry Purchase of Monetary
t h e h o l d i n g materials for based on 692011 692011 0.00 692011 /
and Trade Co. Ltd. goods funds
parent company the Company market price
Total / / 4071364480 / / /
Details of large amount of sales returnsThe Company reviewed and approved the “Proposal on Reviewing the Signing of Framework Agreement onRoutine Related Party Transactions for 2025-2027” at the 2024 Annual General Meeting of Shareholders. In
2025 the amount of the annual related party transactions in the normal business between the Company and
Explanation for related party transactions
its subsidiaries and CCCG and its subsidiaries was about RMB 4.071 billion which did not exceed the upper
limit of the amount of routine related party transactions approved by the 2024 Annual General Meeting of
Shareholders.
3. Events not disclosed in provisional announcements
Applicable √ Not applicableANNUAL REPORT 2025
(II) Related party 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 applicable
2. Events disclosed in the provisional announcement with progress or changes in follow-up implementation
√ Applicable Not applicable
On July 22 2025 the fourteenth meeting of the Ninth Board of Directors of the Company reviewed and approved the
“Proposal on Reviewing the Transfer of the Entire Equity Interest in CCCC Photovoltaic and the Related Party Transaction”
approving the transfer by the Company of its entire equity interest in CCCC Photovoltaic Technology Co. Ltd. to China
Urban and Rural Holding Group Co. Ltd. by way of a non-public agreement at a consideration of approximately RMB
34.3824 million. See the relevant announcement (Extraordinary Announcement No. 2025-033) disclosed by the Company
on the website of the Shanghai Stock Exchange (www.sse.com.cn) and designated information disclosure media on
July 23 2025 for details. During the reporting period the equity transfer agreement was executed and the transfer
consideration was fully paid.
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 party 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 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 applicableSection V Important Events
(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: RMB Currency: CNY
Amount incurred in the current period
Related Maximum Deposit Relationship daily deposit interest rate December 31 Total deposit Total withdrawal December 31 parties limit range 2024 amount in the amount in the 2025
current period current period
CCCC Finance Subsidiary of the holding
Company Ltd. parent company 2000000000 0.43%-1.75% 1719919382 26379578602 26969614819 1129883165
Total / / / 1719919382 26379578602 26969614819 1129883165
2. Loan business
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current period
Related
parties Relationship Loan limit
Loan interest December Total loan amount Total repayment December 31
rate range 31 2024 in the current amount in the 2025
period current period
CCCC Finance Subsidiary of the holding
Company Ltd. parent company 2000000000 1% 580840000 514000000 544000000 550840000
Total / / / 580840000 514000000 544000000 550840000
3. Credit business or other financial business
√ Applicable Not applicable
Unit: RMB Currency: CNY
Related parties Relationship Business type Total amount Actual amount incurred
CCCC Finance Company Ltd. Subsidiary of the holding parent company Credit 2000000000 427450000
4. Other description
Applicable √ Not applicable
(VI) Others
Applicable √ Not applicable
XIII. Material contracts and their performance
(I) Trusteeship contracting and leasing matters
1. Trusteeship
Applicable √ Not applicable
2. Contracting
Applicable √ Not applicableANNUAL REPORT 2025
3. Leasing
√ Applicable Not applicable
Unit: RMB 10000 Currency: CNY
Amount Starting Termination Income Basis for Impacts of Related
Name of lessor Name of lessee Leased involved date of date of from determining income from party assets in leased leasing leasing leasing income from leasing on the transaction
Relationship
assets leasing Company or not
Shanghai
Zhenhua Heavy Shanghai Changyi Lease of
Industries Co. Industrial Co. Ltd houses 520.94 2021/11/15 2031/11/14 1875.48 Agreed 1875.48 No
Ltd.Leasing explanation
None
(II) Guarantee
√ Applicable Not applicable
Unit: RMB Currency: CNY
External guarantee of the Company (excluding guarantee to the subsidiaries)
Relation
between Date of Fulfillment Guarantee the
Guarantor guarantor Guaranteed Guaranteed
guarantee Guarantee
(signing Guarantee Maturity Type of Collateral of the Overdue
Amount of Counter by the
and the party amount date of start date date guarantee (if any) guarantee or not
overdue guarantee related Relationship
or not guarantee or not party or listed agreement) not
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 18765566.10
Total balance of guarantee to the subsidiaries at the end of the reporting period (B) 324495841.76
Total amount of guarantee of the Company (including guarantee to the subsidiaries)
Total amount of guarantee (A+B) 324495841.76
Proportion of total amount of guarantee in the net assets of the Company (%) 2.01
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
with the asset-liability ratio over 70% (D) 177535679.62
Amount of guarantee exceeding 50% of net assets (E) Total guarantee amount of the
above three items (C+D+E)
Explanation for the joint and several repayment liabilities for the undue guarantee 177535679.62
Description of potential joint and several liabilities arising from outstanding
guarantees
At the Company’s 2024 Annual General Meeting the shareholders reviewed and approved
the “Proposal on Reviewing the Company’s External Guarantee Plan for 2025” agreeing that
Shanghai Zhenhua Heavy Industries Co. Ltd. would provide guarantees for its wholly owned
subsidiaries ZPMC Korea Co. Ltd. (the “Korean Subsidiary”) ZPMC ENGINEERING (MALAYSIA)
SDN. BHD. (the “Malaysian Subsidiary”) and ZPMC Panama Corporation (the “PanamanianSubsidiary”) and that Zhenhua Heavy and Large Cargo Shipping (Hong Kong) Co. Ltd. (“GPO”)
a 50%-owned subsidiary of the Company would provide guarantee support for its wholly
owned subsidiaries. Guarantees include: a 3-year guarantee for the Korean Subsidiary capped
at USD 20 million (equivalent to RMB 141.654 million); a 3-year guarantee for the Malaysian
Subsidiary capped at USD 25 million (equivalent to RMB 177.0675 million); a 1-to-5-year
Description of the guarantees guarantee for the Panamanian Subsidiary capped at USD 4.5 million (equivalent to RMB
31.8722 million); for GPO’s subsidiaries guarantees with a 1-to-5-year term comprising: non-
financing guarantees: up to USD 20 million (equivalent to RMB 141.654 million); financing
guarantees: up to USD 203.86 million (equivalent to RMB 1443.8605 million); engineering
guarantees: up to USD 180 million (equivalent to RMB 1274.886 million).As of December 31 2025 the Company had provided guarantees for the Korean Subsidiary
equivalent to RMB 52.4698 million guarantees for the Malaysian Subsidiary equivalent
to RMB 14.362 million and guarantees for the Panamanian Subsidiary equivalent to RMB
866800. GPO had provided guarantees equivalent to RMB 513.5944 million for its four wholly
owned subsidiaries of which guarantees equivalent to RMB 256.7972 million were disclosed
on a pro rata shareholding basis.Section V Important Events
(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 applicable
(2) Individual consigned loans
Applicable √ Not applicable
Other information
Applicable √ Not applicable
(3) Provision for impairment of consigned loans
Applicable √ Not applicable
3. Other information
Applicable √ Not applicable
(IV) Other material contracts
Applicable √ Not applicable
XIV. Progress statement on the utilization of raised funds
Applicable √ Not applicable
XV. Other significant events for investors’ judgment of value and investment decision-
making
Applicable √ Not applicableANNUAL REPORT 2025
Section VI 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
Unit: Share Currency: CNY
Stocks and their Number of Number of securities
Issue price (or Listing
derivative securities Issue date securities approved for listing Delisting date
interest rate) date
Type of securities issued and trading
Bonds (including enterprise bonds corporate bonds and debt financing instruments of non-financial enterprises)
Perpetual corporate The initial term is 3 years and the issuer
2025/9/112.15%50000002025/9/225000000
bonds has the option to extend the term.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 applicableSection VI Changes in Shares and Shareholders’ Situation
(III) Existing internal employee ownership
Applicable √ Not applicable
III. Shareholders and actual controller
(I) Total number of shareholders
Total of ordinary shareholders by the end of the reporting period 197512
Total of ordinary shareholders by the end of the month previous to the disclosure date of annual report 188647
(II) Table of the shares held by top 10 shareholders top 10 holders of marketable shares (or shareholders
without trading limited conditions) as at the end of the reporting period
Unit: Share
Shareholdings of top ten shareholders (excluding shares lent through refinancing)
Changes in Number of Number of Shares in pledge marked
Name of shareholder (Full Name) the reporting shares held at Proportion shares with or frozen Nature of
period the end of the (%) trading limited shareholderperiod conditions held Share status Quantity
Overseas legal
CCCG (HK) Holding Limited 0 916755840 17.401 0 None 0
person
China Communications Construction Company State-owned
0 855542044 16.239 0 None 0
Ltd. legal person
China Communications Construction Group State-owned
0 663223375 12.589 0 None 0
Co. Ltd. legal person
Hong Kong Securities Clearing Company
-25221604 45303102 0.86 Unknown Unknown
Limited
China Merchants Bank Co. Ltd. – South China
1830800 18306100 0.35 Unknown Unknown
Securities 1000 Exchange Traded Fund
VANGUARD EMERGING MARKETS STOCK INDEX
0 15271677 0.29 Unknown Unknown
FUND
VANGUARD TOTAL INTERNATIONAL STOCK
0 14924161 0.28 Unknown Unknown
INDEX FUND
Zhang Zhou 5561396 12406631 0.24 Unknown Unknown
Zhongtai Securities Co. Ltd. – ChinaAMC CSI
12025496 12025496 0.23 Unknown Unknown
Free Cash Flow Exchange Traded Fund
China Merchants Bank Co. Ltd. – ChinaAMC CSI
2718300 11552640 0.22 Unknown Unknown
1000 Exchange Traded Fund
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 Quantity
Foreign shares listed
CCCG (HK) Holding Limited 916755840
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 45303102 RMB ordinary shares
China Merchants Bank Co. Ltd. – South China Securities 1000 Exchange Traded
18306100 RMB ordinary shares
Fund
Foreign shares listed
VANGUARD EMERGING MARKETS STOCK INDEX FUND 15271677
domestically
Foreign shares listed
VANGUARD TOTAL INTERNATIONAL STOCK INDEX FUND 14924161
domestically
Zhang Zhou 12406631 RMB ordinary shares
Zhongtai Securities Co. Ltd. – ChinaAMC CSI Free Cash Flow Exchange Traded Fund 12025496 RMB ordinary sharesANNUAL REPORT 2025
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 Quantity
China Merchants Bank Co. Ltd. – ChinaAMC CSI 1000 Exchange Traded Fund 11552640 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
waived voting rights
Among the above top 10 shareholders CCCG (HK) Holding Limited China
Communications Construction Group Co. Ltd. and China Communications
Construction Company Ltd. are related companies. It was unknown to the
Notes to the related relation or consistent actions of the above-mentioned
Company whether there was related relation between other shareholders and
shareholderswhether they belonged to the concerted actor specified in the “ManagementMethod on Information Disclosure for Shareholding Change of the Shareholdersof Listed Companies”.Description of preference shareholders with restored voting rights and their
shareholdings
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
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
Shareholdings of the top ten restricted shareholders and the restrictions
Applicable √ Not applicable
(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 Song Hailiang
Date of establishment December 8 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.Section VI Changes in Shares and Shareholders’ Situation
CCCG holds a 59.66% stock equity in CCCC (601800.SH 1800.HK) and is its controlling shareholder. CCCG
holds a 100% stock equity in CCCC Real Estate Group Co. Ltd. CCCC Real Estate Group Co. Ltd. holds a
52.16% stock equity in CCCC Real Estate Co. Ltd. (000736.SZ) and is its controlling shareholder. CCCG and its
controlled subsidiaries collectively hold a 28.88% stock equity in Greentown China Holdings Limited (3900.Equity interests in other domestic and HK) and are its controlling shareholders. China Urban and Rural Holding Group Co. Ltd. a wholly owned
overseas listed companies held or invested subsidiary of CCCG holds a 33.04% stock equity in Beijing OriginWater Technology Co. Ltd. (300070.SZ) and
in during the reporting period is its controlling shareholder. CCCG through China Urban and Rural Holding Group Co. Ltd. and CCCC Fund
collectively holds a 33.40% stock equity in Beijing OriginWater Technology Co. Ltd. CCCG through China
Communications Construction Company Limited China Urban and Rural Holding Group Co. Ltd. and CCCC
Capital Holdings Co. Ltd. holds a 58.35% stock equity in CCCC Design & Consulting Group Co. Ltd. (600720.SH) and is its 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 applicable
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 applicableANNUAL REPORT 2025
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 applicable
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 VI Changes in Shares and Shareholders’ Situation
VI. Other corporate shareholders holding more than 10%
√ Applicable Not applicable
Unit: RMB Currency: CNY
Company
Name of corporate Date of Main business or management
principal or legal Organization Code Registered capital
shareholder establishment activities
representative
China Communications General contracting of construction
Construction Company Song Hailiang October 8 2006 91110000710934369E 16165711425 projects for por ts water ways
Ltd. highways bridges etc.CCCG ( H K ) H o l d i n g Investment management project
Peng Guangsheng September 5 2017 / HKD 1000
Limited investment project financing
CCCG (HK) Holding Limited and China Communications Construction Company Ltd. are subsidiaries of China Communications
Description
Construction Group Co. Ltd.VII. Particulars about restrictions on shareholding reduction
Applicable √ Not applicable
VIII. Specific implementation of share repurchases during the reporting period
√ Applicable Not applicable
Unit: RMB 10000 Currency: CNY
Plan for the repurchase of certain A-shares of the Company through
Name of the share repurchase plan
centralized price bidding trading
Disclosure date of the share repurchase plan April 28 2025
Proposed number of shares to be repurchased and percentage of total share
0.14-0.27
capital (%)
Proposed repurchase amount 5000-10000
Proposed repurchase period May 28 2025 to May 27 2026
Purpose of the repurchase Reduction of registered capital
Number of shares repurchased 6469562
Percentage of repurchased shares to the underlying shares under the equity
N/A
incentive plan (%) (if applicable)
Progress of the Company’s disposal of repurchased shares through centralized
N/A
price bidding trading
IX. Preference Shares
Applicable √ Not applicableANNUAL REPORT 2025
Section VII 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
1. Basic information on corporate bonds
Unit: RMB Currency: CNY
Nearest Whether there
Investor
put date Maturity Outstanding Interest Payment Trading Lead Trading is a risk of
Name of bond Abbreviation Code Issue date Value date Trustee eligibility
after April date balance rate (%) method venue underwriter mechanism delisting or
arrangements
30 2026 deregistration
Shanghai
Interest
Zhenhua
shall be
Heavy
paid once
Industries The initial
annually
Co. Ltd. 2025 term is 3
provided
Public Offering years and Shanghai Huatai
that the Huatai United Offered to
of Perpetual 243756. the issuer Stock United Price bidding
25 ZPMC Y1 2025/9/11 2025/9/15 500000000 2.15 issuer Securities Co. professional No
Corporate SH has the Exchange Securities trading
does not Ltd. investors
Bonds to option to (SSE) Co. Ltd.exercise
Professional extend
its right
Investors the term.to defer
(First Tranche)
interest
(Sustainability-
payment
linked)
Measures adopted by the Company to address the risk of bond delisting or deregistration
Applicable √ Not applicable
Interest payment and payment of bonds during the reporting period
Applicable √ Not applicable
2. Triggering and execution of issuer or investor option clauses and investor protection clauses
Applicable √ Not applicable
3. Intermediary agencies providing services for bond issue and duration business
Signed by the
Agency name Office address Accountants (if Person to contact Contact number
applicable)
20/F Tower E Poly Plaza No. 18 Dongfang Road Huang Zhidong
Huatai United Securities Co. Ltd. 021-38966554
Pudong New Area Shanghai Wan Yi
16F East Tower Raffles City The Bund. No.1089 Liu Zhaofu Li
Landing Law Offices 021-66529952
East Daming Rd. Hongkou Dist. Shanghai China Jinchang
You Fei Gao Chong
50/F World Financial Center No. 100 Century
Ernst & Young Hua Ming LLP Gu Chengli Huang You Fei 021-22282578
Ave. Pudong New Area Shanghai
Hongwei
Lianhe Equator Environmental Room 503 No. 80 Qufu Road Xiaobailou
Jia Ruichan 15822592841
Impact Assessment Co. Ltd. Subdistrict Hezhong District Tianjin
Changes in the above intermediary agencies
Applicable √ Not applicableSection VII Bonds
4. Adjustment of credit rating results
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
5. Changes variations and implementation of guarantee debt repayment plan and other debt repayment
guarantee measures during the reporting period and their impacts
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
1. Basic Information
Unit: RMB 100 million Currency: CNY
Balance of proceeds Balance of the special
Whether it is a
Bond Specific type of Total amount of raised as of the end account for proceeds
Bond code special category
abbreviation special category bond proceeds raised of the reporting raised as of the end of
bond
period the reporting period
Perpetual corporate
243756.SH 25 ZPMC Y1 Yes 5.00 0.00 0.00
bonds
2. Changes and adjustments to the use of proceeds raised
Applicable √ Not applicable
3. Utilization of proceeds raised
(1) Actual utilization (excluding temporary supplementation of working capital)
Unit: RMB 100 million Currency: CNY
Actual amount Amount used to Amount Amount Amount
Bond of proceeds repay interest- used to used to involved in
Amount involved in Amount
Bond code abbreviation utilized during bearing debt repay supplement fixed asset
equity investment used for
the reporting (excluding corporate corporate working investment debt investment or other
period bonds) bonds capital projects asset acquisition purposes
243756.SH 25 ZPMC Y1 5.00 5.00
(2) Proceeds raised used to repay corporate bonds and other interest-bearing debt
√ Applicable Not applicable
Bond Details of the repayment
Bond code Details of the repayment of other interest-bearing debt (excluding corporate bonds)
abbreviation of corporate bonds
Repayment of RMB 100000000.00 to the Export-Import Bank of China; RMB 180000000.00
243756.SH 25 ZPMC Y1
to the Agricultural Bank of China; and RMB 220000000.00 to the Bank of Communications
(3) Proceeds raised used to supplement working capital (excluding temporary supplementation of working capital)
Applicable √ Not applicable
(4) Proceeds raised used for specific projects
Applicable √ Not applicable
(5) Proceeds raised used for other purposes
Applicable √ Not applicableANNUAL REPORT 2025
(6) Temporary supplementation of working capital
Applicable √ Not applicable
4. Compliance of the use of proceeds raised
Actual use of
proceeds as of the Whether the actual use Whether the use of Whether the is consistent with the proceeds and the use of proceeds
Bond Use of proceeds
end of the reporting
Bond code as specified in the period (including
intended use (including management of the complied
abbreviation prospectus actual utilization
the use specified in the special account for with local
and temporary prospectus and the proceeds during the government debt
supplementation of use after compliant reporting period management
working capital) changes) were compliant regulations
243756.SH 25 ZPMC Y1 Repayment of interest- Repayment of interest-bearing debt bearing debt Yes Yes N/A
Non-compliance in the use of proceeds and the management of the proceeds account
Applicable √ Not applicable
(III) Other matters required to be disclosed for special category bonds
√ Applicable Not applicable
1. The Company is an issuer of exchangeable corporate bonds
Applicable √ Not applicable
2. The Company is an issuer of green corporate bonds
Applicable √ Not applicable
3. The Company is an issuer of perpetual corporate bonds
√ Applicable Not applicable
Unit: RMB 100 million Currency: CNY
Bond code 243756.SH
Bond abbreviation 25 ZPMC Y1
Outstanding balance 5.00
The conditions for triggering the term extension provisions have not yet occurred
Status of term extension
and the issuer has not exercised the extension option
Step-up in interest rate No interest rate step-up has occurred
The conditions for triggering the interest deferral provisions have not yet
Interest deferral
occurred and no interest payment has been deferred
The conditions for triggering mandatory interest payment have not yet occurred
Mandatory interest payment
and no mandatory interest payment has been made
Whether the bonds continue to be classified as equity and the
Yes
relevant accounting treatment
Other matters None
4. The Company is an issuer of poverty alleviation corporate bonds
Applicable √ Not applicable
5. The Company is an issuer of rural revitalization corporate bonds
Applicable √ Not applicable
6. The Company is an issuer of Belt and Road corporate bonds
Applicable √ Not applicableSection VII Bonds
7. The Company is an issuer of technology innovation corporate bonds or innovation and entrepreneurship
corporate bonds
Applicable √ Not applicable
8. The Company is an issuer of low-carbon transition (linked) corporate bonds
Applicable √ Not applicable
9. The Company is an issuer of corporate bonds for financial distress relief
Applicable √ Not applicable
10. The Company is an issuer of corporate bonds supporting small and micro enterprises
Applicable √ Not applicable
11. Other matters relating to special category corporate bonds
Applicable √ Not applicable
(IV) Important matters related to the corporate bonds during the reporting period
√ Applicable Not applicable
1. Non-operating receivables and fund lending
(1) Balance of non-operating receivables and fund lending
At the beginning of the reporting period the balance of non-operating receivables and fund lending (hereinafter referred
to as “non-operating receivables and fund lending”) due from other parties that did not arise directly from production
and operating activities on a consolidated basis was RMB 0.0;
During the reporting period newly incurred non-operating receivables and fund lending amounted to: RMB 0.0 and
recoveries amounted to: RMB 0.0;
Whether any non-operating receivables or fund lending during the reporting period violated the relevant provisions or
commitments under the prospectus
Yes √ No
As of the end of the reporting period the total outstanding non-operating receivables and fund lending not yet
recovered amounted to: RMB 0.0 of which the total receivables or fund lending due from the controlling shareholder
actual controller and other related parties amounted to: RMB 0.0.
(2) Details of non-operating receivables and fund lending
As of the end of the reporting period the ratio of the Company’s outstanding non-operating receivables and fund
lending on a consolidated basis to its consolidated net assets was: 0%
Whether it exceeded 10% of consolidated net assets: Yes √ No
(3) Implementation status of the repayment arrangements disclosed in previous reporting periods
Fully implemented Not fully implemented √ Not applicable
2. Liabilities
(1) Interest-bearing debt and changes therein
1.1 Structure of the Company’s debt
At the beginning and the end of the reporting period the balance of the Company’s interest-bearing debt (on a non-ANNUAL REPORT 2025
consolidated basis) was RMB 22.212 billion and RMB 16.524 billion respectively representing a year-on-year decrease of
25.61% during the reporting period.
Unit: RMB 100 million Currency: CNY
Maturity
Percentage of interest-
Category of interest-bearing debt Within 1 year Total amount
Overdue Over 1 year (exclusive) bearing debt (%)
(inclusive)
Bank loans 0 23.97 97.72 121.69 73.64
Loans from non-bank financial institutions 0 0 5.51 5.51 3.33
Other interest-bearing debt 0 38.04 0 38.04 23.02
Total 0 62.01 103.23 165.24 —
As of the end of the reporting period among the Company’s outstanding credit bonds the balance of corporate bonds
was RMB 0.0 the balance of enterprise bonds was RMB 0.0 and the balance of debt financing instruments of non-
financial enterprises was RMB 0.0.
1.2 Structure of interest-bearing debt on a consolidated basis
At the beginning and the end of the reporting period the balance of interest-bearing debt of the companies within the
consolidated financial statements was RMB 28.014 billion and RMB 22.048 billion respectively representing a year-on-
year decrease of 21.30% during the reporting period.Unit: RMB 100 million Currency: CNY
Maturity
Percentage of interest-
Category of interest-bearing debt Within 1 year Over 1 year Total amount
Overdue bearing debt (%)
(inclusive) (exclusive)
Bank loans 0 36.87 124.99 161.86 73.41
Loans from non-bank financial institutions 0 0 5.51 5.51 2.50
Other interest-bearing debt 0 43.09 10.02 53.11 24.09
Total 0 79.96 140.52 220.48 —
As of the end of the reporting period among the Company’s outstanding credit bonds on a consolidated basis the
balance of corporate bonds was RMB 0.0 the balance of enterprise bonds was RMB 0.0 and the balance of debt financing
instruments of non-financial enterprises was RMB 0.0.
1.3 Overseas bonds
As of the end of the reporting period the outstanding balance of overseas bonds issued by the companies within the
consolidated financial statements was RMB 0.0.
(2) Whether the Company and its subsidiaries had any overdue interest-bearing debt or overdue credit bonds exceeding
RMB 10 million as of the end of the reporting period
Applicable √ Not applicable
(3) Priority liabilities enforceable against third parties
As of the end of the reporting period the companies within the consolidated financial statements had priority liabilities
enforceable against third parties:
Applicable √ Not applicable
3. Changes in the information disclosure management system during the reporting period
Changed √ No change
(V) Interbank bond market debt financing instrument of non-financial enterprises
√ Applicable Not applicableSection VII Bonds
1. Basic information of debt financing instruments of non-financial enterprises
Unit: RMB Currency: CNY
Investor Risk of
Outstanding Interest Payment Trading eligibility Trading termination
Name of bond Abbreviation Code Issue date Value date Maturity date
balance rate (%) method venue arrangements mechanism of listing
(if any) and trading
Shanghai Zhenhua
22 ZPMC
Heavy Industries Co. Centralized
MTN001
Ltd. 2022 medium- August 24 Interbank book-entry
(sci-tech 102281893 2022/8/22 2022/8/24 2025/8/24 500000000 3.22 No
term notes series I every year market and centralized
innovation
(sci-tech innovation placement
note)
note)
Company’s response to the risk of termination of listing of bonds
Applicable √ Not applicable
Overdue bonds
Applicable √ Not applicable
Interest payment and payment of bonds during the reporting period
√ Applicable Not applicable
Name of bond Description of interest payment and redemption
The Company made interest and principal payments in strict accordance with the relevant provisions of
22 ZPMC MTN001 (sci-tech innovation note)
the prospectus and no bond default occurred.
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 Accountants Person to contact Contact number
(if applicable)
Bank of Communications Co. Ltd. No. 333 Lujiazui Ring Road Zhang Peifei 021-38873279
Industrial Bank Tower 398 Middle Jiangbin Blvd. Lin Chen Cheng 010-8992655
Industrial Bank Co. Ltd.Taijiang District Fuzhou Fujian Qiuyun 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 Road
Shanghai Duan & Duan Law Firm Wang Xiaobo 62191103-7122
Lujiazui Sub-district Pudong New Area Shanghai
Changes in the above intermediary agencies
Applicable √ Not applicable
4. Use of raised funds at the end of the reporting period
Applicable √ Not applicable
Progress and operating benefits of the raised funds used for construction projects
Applicable √ Not applicable
Change in the use of above funds raised from bonds during the reporting period
Applicable √ Not applicable
Other description:
Applicable √ Not applicableANNUAL REPORT 2025
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 applicable
(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: RMB Currency: CNY
Main indexes 2025 2024 Year-on-year change (%) Reason of change
Net profit attributable to the shareholders of Mainly due to the increase in profit resulting from the
the listed company after deducting the non- 498939242 211097452 136.35 increase in project delivery and the decrease in gains from
recurring profits and losses asset disposals.Current ratio 0.92 1.00 -8.00
Quick ratio 0.41 0.45 -8.89
Asset-liability ratio (%) 77.41 78.64 -1.23
EBITDA all debt ratio 0.05 0.05 0
Interest coverage ratio 2.74 2.15 27.44
Cash interest coverage ratio 9.75 6.36 53.30 Mainly due to the decrease in the Company’s interest expenses during the reporting period.EBITDA interest coverage ratio 5.27 4.00 31.75 Mainly due to the increase in profits and the decrease in interest expenses during the reporting period.Loan repayment ratio (%) 100 100 0
Interest coverage ratio (%) 100 100 0
II. Convertible corporate bonds
Applicable √ Not applicableSection VIII Financial Report
Section VIII Financial Report
I. Auditors’ Report
√ Applicable Not applicable
Auditors’ Report
Ernst & Young Hua Ming (2026) 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 2025
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 2025 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 responsibilitiesunder those standards are further described in the “Responsibilities of Certified Public Accounts for the Audit of theFinancial Statements” section of this auditors’ report. In accordance with the Code of Ethics for Chinese Certified Public
Accountants and the Chinese Code of Ethics for Certified Public Accountants No. 1 – Independence Requirements for
Audit and Review Engagements of Financial Statements we are independent of the Company and have fulfilled our
other responsibilities in the aspect of code of ethnics. In conducting the audit we complied with the independence
requirements applicable to audits of public interest entities. 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 Accounts for the Audit of the FinancialStatements” section of this report including the responsibilities related to these key audit matters. Accordingly our audit
included performing audit procedures designed to respond to the assessed risks of material misstatement of the financial
statements. The results of our audit procedures including the procedures performed to address the key audit matters
described below provide a basis for our audit opinion on the financial statements as a whole.ANNUAL REPORT 2025
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 2025 in the consolidated financial statements the balance hypothesis and the estimates through analyzing the related historical
of inventories was RMB 24.16 billion and the reserve for inventory depreciation data and comparing the after-date data of Shanghai Zhenhua Heavy
was RMB 0.29 billion; in the financial statements of the Company the balance of Industries Co. Ltd. We also rechecked the disclosure of inventory
inventories was RMB 20.82 billion and the reserve for inventory depreciation was depreciation reserves in financial statements.RMB 0.25 billion.The accounting policy and other disclosures regarding the inventory are stated in
Note III (10) Note III (33) and Note V (9) of the financial statements.
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 machinery and offshore engineering
Our procedures primarily included understanding and testing the
manufacturing. Since it involves large contracted value long construction period
internal controls established by management over the recognition
relatively complicated technical parameters the implementation of the contract
of provisions for bad debts of accounts receivable; evaluating the
may be affected by the periodicity of the economic environment. The accounts
accounting estimate relating to the depreciation reserves such as
receivable has certain risk in the recovery in case of any dispute in contract or the
the financial status and credit rating of the counterpart; checking
industry is in recession. The provisions for bad debts of accounts receivable are
the account age of accounts receivable and historical repayment
recognized on the basis of estimated credit losses involving major judgment and
record and evaluated whether the financial problems of the counter
estimates. The management of analyzed the financial position of counter parties
party had effects on the recovery of the accounts receivable; for the
guarantee acquired for accounts receivable historical repayment records of
accounts receivable evaluated based on the portfolio we rechecked
accounts receivable as well as the credit rating and future economic situations of
the management’s setting of credit risk features portfolio checked
counter parties for evaluating the credit risk of accounts receivable.the key information such as account age and credit record of each
As of December 31 2025 in the consolidated financial statements the balance
portfolio by sampling and rechecked the basis of management’s
of accounts receivable was RMB 11.97 billion and the provision for bad debts
evaluation of credit risk and expected credit loss amount based on
of accounts receivable was RMB 3.48 billion; in the financial statements of the
the credit risk features portfolio including testing historical default
Company the balance of accounts receivable was RMB 19.60 billion and the
data and checking the actual credit loss in the current year; rechecked
provision for bad debts of accounts receivable was RMB 2.97 billion.the disclosure of bad debt provision for accounts receivable in
The accounting policy and other disclosures regarding the provision for bad debts
financial statements.of accounts receivable are stated in Note III (9) Note III (33) Note V (5) and Note XV
(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 2025 in the consolidated financial statements the operating revenue was RMB procedure to validate the revenue was confirmed in the proper
36.26 billion; in the financial statements of the Company the operating revenue accounting period. For the revenue recognized in a certain period of
was RMB 32.65 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 (24) Note III (33) Note V (50) and Note XV (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 VIII 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. Responsibilities of Certified Public Accounts 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 skepticism throughout the audit. We also:
(1)Identify and assess the risks of material misstatement of the financial statements whether due to fraud or error design
and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error as fraud may involve collusion forgery intentional omissions misrepresentations or the override
of internal control.
(2)Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3)Evaluate the appropriateness of accounting policies used by and the reasonableness of accounting estimates and
related disclosures made by the management.
(4)Conclude on the appropriateness of the management’s use of the going concern basis of accounting. Based on the
audit evidence obtained whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the ability of Shanghai Zhenhua Heavy Industries Co. Ltd. to continue as a going concern. If we conclude that
a material uncertainty exists we are required to in our auditors' report draw attention of the users of statements to the
related disclosures in the financial statements; if such disclosures are inadequate we should modify our opinion. Our
conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However future events or
conditions may cause Shanghai Zhenhua Heavy Industries Co. Ltd. to cease to continue as a going concern.ANNUAL REPORT 2025
(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 VIII Financial Report
(Intentionally left blank)
Ernst & Young Hua Ming LLP Certified Public Accountant of China: You Fei
(Engagement Partner)
Certified Public Accountant of China: Huang Hongwei
Beijing China March 30 2026ANNUAL REPORT 2025
II. Financial Statements
Consolidated Balance Sheet
December 31 2025
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd.Unit: RMB Currency: CNY
Item Note December 31 2025 December 31 2024
Current assets:
Monetary funds VII (1) 4570277131 5866827212
Settlement provisions
Lending funds
Held-for-trading financial assets VII (2) 403446171 534200582
Derivative financial assets VII (3) 8438278 8438278
Notes receivable VII (4) 149325265 50000000
Accounts receivable VII (5) 8485823809 7365793461
Receivables financing VII (7) 485369280 650260884
Advances to suppliers VII (8) 822235371 1031617859
Premiums receivable
Reinsurance accounts receivable
Reserves for reinsurance contract receivable
Other receivables VII (9) 704236518 780170637
Including: Interest receivable
Dividends receivable
Financial assets purchased under agreements to resell
Inventories VII (10) 23864978518 24554584666
Including: Data resources
Contract assets VII (6) 3069918477 3897647216
Assets held for sale VII (11) 12327736
Non-current assets due within one year VII (12) 888580054 1346060900
Other current assets VII (13) 1338624990 858154532
Total current assets 44803581598 46943756227
Non-current assets:
Disbursement of loans and advances
Debt investment VII (14)
Other debt investments VII (15)
Long-term receivables VII (16) 1262789513 1081258063
Long-term equity investments VII (17) 1786371955 1767152609
Other equity instrument investment VII (18) 211195841 190530888
Other non-current financial assets VII (19)
Investment properties VII (20) 371596566 406737755
Fixed assets VII (21) 22908296058 23690697203
Construction in progress VII (22) 1443133460 1301728801
Productive biological assets
Oil and gas assets
Right-of-use assets VII (25) 17568182 37979304
Intangible assets VII (26) 4395845113 4388171283
Including: Data resources
Development expenditures
Including: Data resources
Goodwill VII (27) 269293046 271896748
Long-term deferred expenses VII (28) 1960379 1593447
Deferred income tax assets VII (29) 952783587 877269033
Other non-current assets VII (30) 4610288207 4808691840
Total non-current assets 38231121907 38823706974
Total assets 83034703505 85767463201Section VIII Financial Report
Item Note December 31 2025 December 31 2024
Current liabilities:
Short-term borrowings VII (32) 3686556417 2297334457
Borrowings from the Central Bank
Borrowing funds
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable VII (35) 4688600816 4584675393
Accounts payable VII (36) 12732696709 10603482116
Advances from customers VII (37) 57376888
Contract liabilities VII (38) 21579188821 21485833167
Financial assets sold for repurchase
Deposits from customers and interbank
Acting trading securities
Acting underwriting securities
Payroll payable VII (39) 40089178 40189914
Tax payable VII (40) 435826655 344230174
Other payables VII (41) 1132892320 890050528
Including: Interest payable
Dividends payable 105244272 6593
Fees and commissions payable
Dividend payable for reinsurance
Liabilities held for sale
Non-current liabilities due within one year VII (43) 4309086267 6745720647
Other current liabilities
Total current liabilities 48662314071 46991516396
Non-current liabilities:
Reserve fund for insurance contracts
Long-term borrowings VII (45) 13050181140 17785704495
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities VII (47) 10443321 10445787
Long-term payables VII (48) 1461252947 1717210910
Long-term payroll payable
Estimated liabilities VII (50) 302749809 208887331
Deferred income VII (51) 343244081 341562085
Deferred income tax liabilities VII (29) 178639702 137688522
Other non-current liabilities VII (52) 270818174 251996220
Total non-current liabilities 15617329174 20453495350
Total liabilities 64279643245 67445011746
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) 4733496022 4709186687
Less: treasury stock VII (56) 29008907
Other comprehensive income VII (57) 75744687 77752796
Special reserves VII (58) 9252566 16731029
Surplus reserves VII (59) 1774994373 1753183750
General risk preparation
Undistributed profits VII (60) 3843674786 3542325737
Total owners’ equity (or shareholders’ equity) attributable to the
1617650702815867533500
owners of the parent company
Minority equity 2578553232 2454917955
Total owners’ equity (or shareholders’ equity) 18755060260 18322451455
Total liabilities and owners’ equity (or shareholders’
8303470350585767463201
equity)
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiANNUAL REPORT 2025
Balance Sheet of the Parent Company
December 31 2025
Prepared by: Shanghai Zhenhua Heavy Industries Co. Ltd.Unit: RMB Currency: CNY
Item Note December 31 2025 December 31 2024
Current assets:
Monetary funds 2735541181 3827553785
Held-for-trading financial assets 103401780 138755008
Derivative financial assets
Notes receivable 62755353
Accounts receivable XIX (1) 16622067830 20307096833
Receivables financing 338588845 342741773
Advances to suppliers 2001808140 1871468396
Other receivables XIX (2) 2591815489 3273122746
Including: Interest receivable
Dividends receivable
Inventories 20573659221 18996871002
Including: Data resources
Contract assets 1955194261 2460999689
Assets held for sale 12327736
Non-current assets due within one year
Other current assets 1119675225 606275744
Total current assets 48116835061 51824884976
Non-current assets:
Debt investment
Other debt investments
Long-term receivables
Long-term equity investments XIX (3) 10883591725 10351021410
Other equity instrument investment 211195841 190530888
Other non-current financial assets
Investment properties 358064066 392376734
Fixed assets 4213476418 4015302414
Construction in progress 1097499349 1056661914
Productive biological assets
Oil and gas assets
Right-of-use assets 3050645 9166128
Intangible assets 1323959348 1362202411
Including: Data resources
Development expenditures
Including: Data resources
Goodwill
Long-term deferred expenses 31376 94129
Deferred income tax assets 885522954 855067411
Other non-current assets 732100657 663482258
Total non-current assets 19708492379 18895905697
Total assets 67825327440 70720790673Section VIII Financial Report
Item Note December 31 2025 December 31 2024
Current liabilities:
Short-term borrowings 2396556417 889334457
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 4531346956 3861379521
Accounts payable 8711667852 7419221155
Advances from customers 57376888
Contract liabilities 21057242399 20061938867
Payroll payable 29374048 29258184
Tax payable 226550279 235344747
Other payables 955408562 1086104964
Including: Interest payable
Dividends payable 105244272 6593
Liabilities held for sale
Non-current liabilities due within one year 3805385064 6415625514
Other current liabilities
Total current liabilities 41770908465 39998207409
Non-current liabilities:
Long-term borrowings 10323453100 14913247504
Bonds payable
Including: Preferred stock
Perpetual bond
Lease liabilities 40490 1788323
Long-term payables
Long-term payroll payable
Estimated liabilities 271157342 181513116
Deferred income 258120297 240784101
Deferred income tax liabilities
Other non-current liabilities 273644 5687798
Total non-current liabilities 10853044873 15343020842
Total liabilities 52623953338 55341228251
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 4931360781 4907051446
Less: treasury stock 29008907
Other comprehensive income 63989065 48144596
Special reserves 3408332 2165658
Surplus reserves 1774486100 1752675477
Undistributed profits 2688785230 2901171744
Total owners’ equity (or shareholders’ equity) 15201374102 15379562422
Total liabilities and owners’ equity (or shareholders’
6782532744070720790673
equity)
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiANNUAL REPORT 2025
Consolidated Income Statement
January-December 2025
Unit: RMB Currency: CNY
Item Note 2025 2024
I. Total operating revenue 36260458326 34456420181
Including: Operating revenue VII (61) 36260458326 34456420181
Interest income
Premiums earned
Fee and commission income
II. Total operating cost 34556017475 33273059405
Including: Operating costs VII (61) 31278160080 30060171301
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) 357214357 334432807
Selling and distribution expenses VII (63) 236909842 232654482
General and administrative expenses VII (64) 837981962 818457672
Research and development expenditures VII (65) 1515374795 1502397344
Financial expenses VII (66) 330376439 324945799
Including: Interest expenses 641183627 812901300
Interest income 353481891 389180961
Plus: Other income VII (67) 157299740 145576944
Income from investment (loss expressed with “-”) VII (68) 144556726 78121431
Including: Income from investment of joint venture and cooperative
7552512638722269
enterprise
Income from derecognition of financial assets measured
-11574005-54613813
at amortized cost
Exchange gain (loss expressed with “-”)
Net exposure hedging gain (loss expressed with “-”)
Income from fair value change (loss expressed with “-”) VII (70) -7820546 13425987
Credit impairment loss (loss expressed with “-”) VII (71) -545528648 -418414816
Assets impairment losses (loss expressed with “-”) VII (72) -386685061 -200815539
Income from disposal of assets (loss expressed with “-”) VII (73) 42148850 106961574
III. Operating profits (loss expressed with “-”) 1108411912 908216357
Plus: Non-operating income VII (74) 25842164 53998945
Less: Non-operating expenditure VII (75) 18230062 24786050
IV. Total profits (total loss expressed with “-”) 1116024014 937429252
Less: Income tax expenses VII (76) 113096668 157484483
V. Net profits (net loss expressed with “-”) 1002927346 779944769
(I) Classified by business continuity
1. Net profits from ongoing operation (net loss expressed with “-”) 1002927346 779944769
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
731841793533524077
loss expressed with “-”)
2. Minority interests (net loss expressed with “-”) 271085553 246420692Section VIII Financial Report
Item Note 2025 2024
VI. Net of tax of other comprehensive income VII (77) -21613168 30472971
(I) Net amount of after-tax other comprehensive income attributable
-200810921757460
to the owners of the parent company
1. Other comprehensive income that cannot be reclassified into
175652104565955
profit and loss
(1) Remeasurement of defined benefit plan
(2) Other comprehensive income that cannot be reclassified into
profit and loss in the invested enterprise under equity method
(3) Fair value change of other equity instrument investments 17565210 4565955
(4) Fair value change of enterprise credit risks
2. Other comprehensive income that will be reclassified into profit
-1957331917191505
and loss
(1) Other comprehensive income that will be reclassified into profit
-82850514646563
and 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 -18744814 2544942
(7) Others
(II) Net of tax of other comprehensive income attributable to the
-196050598715511
minority shareholders
VII. Total comprehensive income 981314178 810417740
(I) Total comprehensive income attributable to the owners of the
729833684555281537
parent company
(II) Total comprehensive income belonging to minority shareholders 251480494 255136203
VIII. Earnings per share:
(I) Basic earnings per share (RMB/share) 0.14 0.10
(II) Diluted earnings per share (RMB/share) 0.14 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: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiANNUAL REPORT 2025
Income Statement of Parent Company
January-December 2025
Unit: RMB Currency: CNY
Item Note 2025 2024
I. Operating revenue XIX (4) 32649978661 34566920628
Less: Operating costs XIX (4) 29862491371 31446805557
Taxes and surcharges 253116315 254780250
Selling and distribution expenses 163373271 155409738
General and administrative expenses 431730668 454544585
Research and development expenditures 1073396668 1092525439
Financial expenses 383413874 299533226
Including: Interest expenses 446048294 565802063
Interest income 59710611 80198004
Plus: Other income 39017864 67785887
Income from investment (loss expressed with “-”) XIX (5) 313712049 113104491
Including: Income from investment of joint venture and cooperative enterprise 75525126 38775117
Income from derecognition of financial assets measured at amortized cost -11574005 -54613813
Net exposure hedging gain (loss expressed with “-”)
Income from fair value change (loss expressed with “-”) -29425185 -39555311
Credit impairment loss (loss expressed with “-”) -283482797 -383046479
Assets impairment losses (loss expressed with “-”) -357776552 -209486005
Income from disposal of assets (loss expressed with “-”) 24503331 8240262
II. Operating profits (loss expressed with “-”) 189005204 420364678
Plus: Non-operating income 17711237 19258466
Less: Non-operating expenditure 18157712 1803355
III. Total profits (total loss expressed with “-”) 188558729 437819789
Less: Income tax expenses -29547501 19032738
IV. Net profits (loss expressed with “-”) 218106230 418787051
(I) Net profits from ongoing operation (net loss expressed with “-”) 218106230 418787051
(II) Net profits from discontinuing operation (net loss expressed with “-”)
V. Net of tax of other comprehensive income 15844469 19740226
(I) Other comprehensive income that cannot be reclassified into profit and loss 17565210 4565955
1. Remeasurement of defined benefit plan
2. Other comprehensive income that cannot be reclassified into profit and loss in the
invested enterprise under equity method
3. Fair value change of other equity instrument investments 17565210 4565955
4. Fair value change of enterprise credit risks
(II) Other comprehensive income that will be reclassified into profit and loss -1720741 15174271
1. Other comprehensive income that will be reclassified into profit and loss in the
invested enterprise under equity method -828505 14646563
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 -892236 527708
7. Others
VI. Total comprehensive income 233950699 438527277
VII. Earnings per share:
(I) Basic earnings per share (RMB/share)
(II) Diluted earnings per share (RMB/share)
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiSection VIII Financial Report
Consolidated Statement of Cash Flows
January-December 2025
Unit: RMB Currency: CNY
Item Note 2025 2024
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 37356265364 37435656876
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 685232714 652174743
Other cash received related to operating activities 421976056 519372156
Subtotal cash inflows from operating activities 38463474134 38607203775
Cash paid for goods purchased and services received 27904261186 29307515856
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 2746218784 2626047540
Taxes and fees paid 996630533 718326527
Other cash paid related to operating activities 567059250 679434974
Subtotal cash outflows from operating activities 32214169753 33331324897
Net cash flows from operating activities 6249304381 5275878878
II. Cash flows from investment activities:
Cash from investment withdrawal 162984720 421989782
Cash from investment income 98825502 113205574
Net cash received from disposal of fixed assets intangible assets and
189161706148958016
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 125703163 232413226
Subtotal cash inflows from investment activities 576675091 928588779
Cash paid for purchase of fixed assets intangible assets and other
10497835001061984214
long-term assets
Cash paid for investments 88358925
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 1049783500 1150343139
Net cash flows from investment activities -473108409 -221754360ANNUAL REPORT 2025
Item Note 2025 2024
III. Cash flows from financing activities:
Cash from absorption of investments 28132880 49240000
Including: Cash received from subsidies’ absorption of minority
2813288049240000
shareholders’ investment
Cash received from issuance of other equity instruments 500000000
Cash received from borrowings 9365393463 15944699596
Other cash received related to financing activities 1682508625 1942418735
Subtotal cash inflows from financing activities 11576034968 17936358331
Cash repayments of amounts borrowed 15142807946 17647258576
Cash paid for distribution of dividends profits or interest expenses 1003833684 1207097103
Including: Dividends and profits paid by subsidiaries to minority
5598878498052888
shareholders
Other cash paid related to financing activities 2455566049 3385153914
Subtotal cash outflows from financing activities 18602207679 22239509593
Net cash flows from financing activities -7026172711 -4303151262
IV. Impact of exchange rate movements on cash and cash equivalents -30997458 40032787
V. Net increase of cash and cash equivalents -1280974197 791006043
Plus: Beginning balance of cash and cash equivalents 5823175948 5032169905
VI. Ending balance of cash and cash equivalents 4542201751 5823175948
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiSection VIII Financial Report
Statement of Cash Flows of the Parent Company
January-December 2025
Unit: RMB Currency: CNY
Item Note 2025 2024
I. Cash flow from operating activities:
Cash from selling commodities or offering labor 33406974912 32363081440
Refund of tax and levies 670995867 635668940
Other cash received related to operating activities 343874045 344116999
Subtotal cash inflows from operating activities 34421844824 33342867379
Cash paid for goods purchased and services received 26293121817 26790765500
Cash paid to and for employees 1375079362 1385075473
Taxes and fees paid 324760192 174514929
Other cash paid related to operating activities 466855854 463694875
Subtotal cash outflows from operating activities 28459817225 28814050777
Net cash flows from operating activities 5962027599 4528816602
II. Cash flows from investment activities:
Cash from investment withdrawal 86978898 531587245
Cash from investment income 268863449 135346793
Net cash received from disposal of fixed assets intangible assets and
245033318240262
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 380345678 675174300
Cash paid for purchase of fixed assets intangible assets and other
476129347341835549
long-term assets
Cash paid for investments 550750450 1459478925
Net cash paid for obtaining subsidiaries and other business units
Other cash paid related to investment activities
Subtotal cash outflows from investment activities 1026879797 1801314474
Net cash flows from investment activities -646534119 -1126140174
III. Cash flows from financing activities:
Cash from absorption of investments
Cash received from borrowings 7508133416 13270759931
Cash received from issuance of other equity instruments 500000000
Other cash received related to financing activities 1593157375 1897394119
Subtotal cash inflows from financing activities 9601290791 15168154050
Cash repayments of amounts borrowed 13196268552 15581580228
Cash paid for distribution of dividends profits or interest expenses 749492736 851526505
Other cash paid related to financing activities 2074679487 2042588113
Subtotal cash outflows from financing activities 16020440775 18475694846
Net cash flows from financing activities -6419149984 -3307540796
IV. Impact of exchange rate movements on cash and cash equivalents 6584894 6174253
V. Net increase of cash and cash equivalents -1097071610 101309885
Plus: Beginning balance of cash and cash equivalents 3813514842 3712204957
VI. Ending balance of cash and cash equivalents 2716443232 3813514842
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiANNUAL REPORT 2025
Consolidated Statement of Changes in Owners’ Equity
January-December 2025
Unit: RMB Currency: CNY
2025
Equity attributable to the owners of the parent company
Item
Paid-in capital Other equity instruments Other Minority Total owners’
(or share Capital Less: treasury Preferred Perpetual reserves stock comprehensive
Special Surplus General risk Undistributed equity equity
capital) Others income reserves reserves preparation profits
Others Sub-total
stock bond
I. Balance at the end of the last year 5268353501 500000000 4709186687 77752796 16731029 1753183750 3542325737 15867533500 2454917955 18322451455
Plus: Changes in accounting policies
Prior period error correction
Others
II. Beginning balance in current year 5268353501 500000000 4709186687 77752796 16731029 1753183750 3542325737 15867533500 2454917955 18322451455
III. Increase/decrease in the current year (“-” for decrease) 24309335 29008907 -2008109 -7478463 21810623 301349049 308973528 123635277 432608805
(I) Total comprehensive income -2008109 731841793 729833684 251480494 981314178
(II) Owner’s invested and decreased capital 24309335 29008907 -4699572 -69201274 -73900846
1. Common stock invested by the owners 28132880 28132880
2. Capital invested by other equity instrument holders 500000000 500000000 500000000
3. Amount of share-based payment included in the owner’s
equity 23639017 23639017 23639017
4. Others 670318 29008907 -28338589 -97334154 -125672743
5. Capital reduced by other equity instrument holders -500000000 -500000000 -500000000
(III) Profit distribution 21810623 -430492744 -408682121 -55988784 -464670905
1. Withdrawal of surplus reserves 21810623 -21810623
2. Withdrawal of general risk preparation
3. Distribution of owners (or shareholders) -394997121 -394997121 -55988784 -450985905
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. Carryforward retained earnings of other comprehensive
income
6. Others
(V) Special reserves -7478463 -7478463 -2655159 -10133622
1. Amount withdrawn in the current year 77940404 77940404 6002090 83942494
2. Amount used in the current year -85418867 -85418867 -8657249 -94076116
(VI) Others
IV. Closing balance 5268353501 500000000 4733496022 29008907 75744687 9252566 1774994373 3843674786 16176507028 2578553232 18755060260Section VIII Financial Report
2024
Equity attributable to the owners of the parent company
Item
Paid-in capital Other equity instruments Less: Other Minority Total owners’
(or share Capital reserves treasury comprehensive Special Surplus reserves General risk Undistributed Preferred reserves preparation profits Others Sub-total
equity equity
capital) 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 18322451455
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiANNUAL REPORT 2025
Statement of Changes in Owners’ Equity of the Parent Company
January-December 2025
Unit: RMB Currency: CNY
2025
Paid-in capital Other equity instrumentsItem Other Less: treasury Special Surplus Undistributed Total owners’
(or share Preferred Capital reserves comprehensive
Perpetual bond Others stock reserves reserves profits equitycapital) stock income
I. Balance at the end of the last year 5268353501 500000000 4907051446 48144596 2165658 1752675477 2901171744 15379562422
Plus: Changes in accounting policies
Prior period error correction
Others
II. Beginning balance in current year 5268353501 500000000 4907051446 48144596 2165658 1752675477 2901171744 15379562422
III. Increase/decrease in the current year (“-” for decrease) 24309335 29008907 15844469 1242674 21810623 -212386514 -178188320
(I) Total comprehensive income 15844469 218106230 233950699
(II) Owner’s invested and decreased capital 24309335 29008907 -4699572
1. Common stock invested by the owners
2. Capital invested by other equity instrument holders 500000000 500000000
3. Amount of share-based payment included in the owner’s
2363901723639017
equity
4. Others 670318 29008907 -28338589
5. Capital reduced by other equity instrument holders -500000000 -500000000
(III) Profit distribution 21810623 -430492744 -408682121
1. Withdrawal of surplus reserves 21810623 -21810623
2. Distribution of owners (or shareholders) -394997121 -394997121
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 1242674 1242674
1. Amount withdrawn in the current year 32655203 32655203
2. Amount used in the current year -31412529 -31412529
(VI) Others
IV. Closing balance 5268353501 500000000 4931360781 29008907 63989065 3408332 1774486100 2688785230 15201374102Section VIII Financial Report
2024
Other equity instruments
Item Less: Other Paid-in capital Capital Special Surplus Undistributed Total owners’
Preferred Perpetual treasury comprehensive (or share capital) Others reserves reserves reserves profits equity
stock bond 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 174312064
(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 equity 12144098 12144098
4. Others
(III) Profit distribution 41878705 -318981380 -277102675
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 income -3004966 3004966
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 15379562422
Legal representative of the Company: You Ruikai Person in charge of accounting work: Li Zhen Person in charge of accounting agency: Wang MinfeiANNUAL REPORT 2025
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 August 5 1997.As approved by ZJFXZ (2000) No. 200 Document of China Securities Regulatory Commission the Company additionally
issued 88000000 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 in 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 in October 15 2007. The additionally issued A-shares were
listed at Shanghai Stock Exchange respectively for trading on October 23 2007 and January 23 2008.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 March 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 2025 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 the 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 VIII Financial Report
shares of the Company after that China Communications Construction Co. Ltd. held 16.239% of the stock equity of the
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 the Company (accounting for 12.589% of the total shares of the
Company) indirectly held 763963200 B-shares of the Company through CCCG (Hong Kong) (accounting for 17.401%
of the total shares of the Company) and held 712951703 A-shares of the Company through China Communications
Construction Co. Ltd. (accounting for 16.239% of the total shares of the 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 the design
manufacture installation and contracting of large-scale port handling systems and equipment offshore heavy-duty
equipment engineering machinery engineering vessels and large-scale metal structures and their components; the
sale of self-manufactured products; and international shipping utilizing specialized transport vessels and specialized
contracting for steel structure engineering.The financial statements were approved by the resolution of the Board of Directors of the Company on March 30 2026.IV. Basis of preparation for financial statements
1. Basis of preparation
The Company’s financial statements are prepared on a going concern basis.
2. Going concern
√ Applicable Not applicable
These financial statements are presented on a going concern basis.As of December 31 2025 the Group’s current liabilities exceeded its current assets by approximately RMB 3.859 billion.In preparing these financial statements in view of the Group’s available bank credit facilities established track record
in obtaining financing sound cooperative relationships with major banks and financial institutions and operating
performance the Board of Directors believes that the Group will continue to obtain sufficient financing sources and
operating cash flows to meet its funding requirements for operations repayment of maturing debts and capital
expenditures during the 12-month period commencing January 1 2025. Accordingly the Board of Directors is satisfied
that the Group will continue as a going concern and has prepared these financial statements on a going concern basis.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. Significant 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.ANNUAL REPORT 2025
3. Operating cycle
Applicable √ Not applicable
4. Functional currency
The Company adopts RMB as the base currency for bookkeeping.
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
Recovery or reversal of provision for bad debts The amount of individual recovery or reversal accounts for more than 10% of the total amount of various
on significant 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
Actual write-off of significant 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 significant 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
Significant 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
Significant joint ventures or 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 outflowsSection VIII Financial Report
6. Accounting treatment of business combination under common control and not under common control
√ Applicable Not applicable
Business combinations are classified into business combinations involving entities under common control and business
combinations not involving entities under common control.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 the 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 a 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 equity
incomes expenses and cash flow arising from transactions among companies within the Group are eliminated in full
upon consolidation.If the current losses attributable to minority shareholders of a subsidiary exceed the minority interest in the subsidiary’s
opening equity such excess continues to be charged against the minority interest.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.ANNUAL REPORT 2025
For subsidiaries acquired through business combinations involving entities under common control the operating results
and cash flows of the acquiree are included in the consolidated financial statements as of the beginning of the reporting
period in which the combination occurs. When preparing comparative consolidated financial statements the relevant
items in the prior-period financial statements are adjusted as if the reporting entity resulting from the combination had
existed continuously since the date on which the ultimate controlling party first obtained control.If changes in relevant facts and circumstances result in changes to one or more elements of control the Group reassesses
whether it controls the investee.Without lose of the control right change of the minority equity is deemed as capital transaction.
8. Classification of joint venture arrangement and methods of 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 are eligible for capitalization 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 are translated at the spot exchange rates prevailing on the dates of the cash flows. The cash
flows of overseas subsidiaries are translated at the average exchange rates for the period in which the cash flows occur
(unless exchange rate fluctuations render the use of such rates inappropriate in which case the spot exchange rates on
the dates of the cash flows are used). The effect of exchange rate changes on cash amount is presented separately in the
statement of cash flows as a reconciliation item.Section VIII Financial Report
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.
(1) 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.A financial asset (or part of a financial asset or part of a portfolio of similar financial assets) is derecognized and removed
from the balance sheet when any of the following conditions is met:
(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.A financial liability is derecognized when the obligation under the liability is discharged cancelled or expires. Where an
existing financial liability is replaced by another financial liability from the same creditor on substantially different terms
or the terms of an existing liability are substantially modified such replacement or modification is accounted for as the
derecognition of the original liability and the recognition of a new liability and the difference is recognized in profit or
loss for the current period.Regular-way purchases and sales of financial assets are recognized and derecognized using trade date accounting.Regular-way purchases and sales of financial assets refer to purchases or sales of financial assets under contracts whose
terms require delivery of the financial assets within the time frame established generally by regulations or market
convention. Trade date refers to the date on which the Group commits to purchase or sell a financial asset.
(2) 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 meeting both of 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
Financial assets meeting both of the following conditions are classified as financial assets at fair value through other
comprehensive income: the Group’s management model of such financial assets aims at the collection of contract
cash flows and sales of financial assets; 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. The interest income ofANNUAL REPORT 2025
such financial assets is recognized by the effective interest method. Except for interest income impairment losses and
exchange differences recognized in profit or loss for the current period all other changes in fair value are recognized in
other comprehensive income. 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 the
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.
(3) 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.
(4) Impairment of financial instruments
Determination and accounting treatment of the expected credit loss
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 andSection VIII Financial Report
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.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.Portfolio categories and determination basis for provision for impairment based on credit risk characteristics
The Group considers the credit risk characteristics of different customers and assesses the expected credit losses of
receivables and contract assets based on aging portfolios with shared risk characteristics. The Group has established the
following portfolios: Related-party customer portfolio private enterprise customer portfolio government entity customer
portfolio and other customer portfolio.Aging calculation method based on aging recognition of credit risk characteristics portfolio
The Group determines the aging of trade receivables based on the date of initial recognition of the receivables.Judgment criteria for determination of provision accrued on an individual basis based on the provision for impairment
accrued on an individual basis
Where the credit risk characteristics of a counterparty differ significantly from those of other counterparties within the
portfolio loss provisions are recognized on an individual basis for amounts due from that counterparty. The Group
identifies account receivables and contract assets involving customers in financial difficulty or contracts under dispute as
assets accrued on an individual basis.Write-off of provision for impairment
When the Group no longer reasonably expects to recover all or part of the contract cash flows of a financial asset it
directly writes down the gross carrying amount of the financial asset.
(5) 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.
(6) Transfer of financial instruments
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 applicableANNUAL REPORT 2025
13. Accounts receivable
Applicable √ Not applicable
14. Receivables financing
Applicable √ Not applicable
15. Other receivables
Applicable √ Not applicable
16. Inventories
√ Applicable Not applicable
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 costs classified as current assets are presented under 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
performance of contract 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 aSection VIII Financial Report
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 applicable
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
A non-current asset or disposal group is classified as held for sale if its carrying amount will be recovered principally
through a sale transaction rather than through continuing use. A non-current asset or disposal group is classified as held
for sale when both of the following conditions are met: it is available for immediate sale in its present condition subject
only to terms that are usual and customary for the sale of such assets or disposal groups; and its sale is highly probable
meaning that the entity has made a decision on a sale plan and obtained a firm purchase commitment with the sale
expected to be completed within one year (where approval by the relevant authority or regulatory body is required such
approval has been obtained).For non-current assets or disposal groups classified as held for sale (other than financial assets and deferred tax assets)
where the book value exceeds the fair value less costs to sell the book value is written down to fair value less costs to
sell with the write-down recognized as an impairment loss in profit or loss for the current period and a corresponding
provision for impairment for assets held for sale is recognized. Non-current assets included in held-for-sale non-current
assets or disposal groups are not depreciated or amortized nor are they accounted for using the equity method.Recognition criteria and presentation methods for discontinuing operation
√ Applicable Not applicable
A discontinued operation is a separately identifiable component that has either been disposed of or classified as held
for sale and meets one of the following conditions: it represents a separate major line of business or a separate major
geographical area of operations; it is part of a single coordinated plan to dispose of a separate major line of business or a
separate major geographical area of operations; or it is a subsidiary acquired exclusively with a view to resale.The results of discontinued operations are presented separately from those of continuing operations in the income
statement. Impairment losses and reversals together with gains or losses on disposal relating to discontinued operations
are presented as discontinued operations. For discontinued operations presented in the current period the Group
restates the information previously presented as continuing operations in the current financial statements as comparative
information for discontinued operations.
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 combined party 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).ANNUAL REPORT 2025
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.The long-term equity investments where the Company could control the investee shall be accounted in individual
financial statements of the Company under the cost method. Control means the power owned over the investee and
enjoys the variable return through participating in activities related to the investee and has the ability to affect its return
by using the power over the investee.Under the cost method long-term equity investments are valuated at initial investment cost. The Company shall increase
or recover the investment to adjust the cost of long-term equity investments. Cash dividends or profits declared and
distributed by the investee should be recognized as investment income in the current period.If the Group has joint control over or significant influence on the investees long-term equity investments are accounted
for with the equity method. Joint control refers to the control shared over an arrangement in accordance with the relevant
stipulations and the decision-making of related activities of the arrangement should not be made before the party
sharing the control right agrees the same. Significant influence refers to the power to participate in making decisions on
the financial and operating policies of the investee but not the power to control or jointly control the formulation of
such policies with other parties.For long-term equity investments measured under the equity method if the initial investment costs are higher than the
investor’s attributable share of the fair value of the investee’s identifiable net assets the initial costs of the long-term
equity investments shall be recognized; if the initial investment costs are lower than the investor’s attributable share of
the fair value of the investee’s identifiable net assets the difference shall be recognized in current profit and loss and at
the same time the adjustment will be made to the initial costs of the long-term equity investments.Where the equity method is adopted after the long-equity investments are acquired the Company shall according to the
shares of net profit and loss and other comprehensive income realized by the investee which the Company shall enjoy or
bear recognize the profit and loss on the investments and other comprehensive income and adjust the book value of the
long-term equity investments. When recognizing the share of net profit or loss of the investee that the Group shall enjoy
based on fair value of various identifiable assets and others of the investee on acquisition and according to accounting
policies and accounting periods of the Group the Group shall write off the part of incomes from internal transactions
with associates and joint ventures which are attributable to the investor according to the shareholding ratio (but the loss
from internal transactions is the asset impairment loss its total amount shall be recognized) and then recognize the profit
and loss on investments on such basis except those assets investments or sale constitute business. The Group shall in the
light of the profits or cash dividends that the investee declares to distribute calculate the part it should share and reduce
the book value of the long-term equity investment correspondingly. Recognition of the net loss in the investee shall be
within the limit that the book value of long-term equity investments and other long-term interests which substantially
form the net investment in the investee are reduced to zero unless the Group is obliged to bear extraneous losses; For
other changes in shareholder’s equity of the investee excluding net losses or profits other comprehensive income or
profit distribution the book value of long-term equity investments will be adjusted and included in shareholder’s equity.
20. Investment properties
(1) If the cost measurement model is used:
Depreciation or amortization method
Investment property refers to the real estate held for generating rent and/or capital appreciation.Section VIII Financial Report
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 net residual value rate Annual depreciation (amortization) rate
Buildings and constructions 30 years 0% 3.3%
Determined according to the estimated net residual
Land use right Land useful lives 0%
value 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 fixed
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 recorded in the current profits and losses.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 years 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.
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.ANNUAL REPORT 2025
Category Standard for carrying forward fixed assets
Houses and buildings have passed the preliminary acceptance and reached the expected usable state or they
Buildings and constructions
are actually put into use whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning
Mechanical equipment
whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning
Office and electronic equipment
whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning
Transportation facilities (excluding ship)
whichever is earlier
They meet the design requirements or are actually put into use after installation and commissioning
Vessel
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 eligible for
capitalization shall be capitalized and other borrowing costs shall be included into current profit and loss.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.Category 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
Concession rights 27 years Concession period grantedSection VIII Financial Report
(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.
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 be based 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 book value and
recoverable amount and if the recoverable amount is less than book value the amount of impairment loss is first
allocated to offset the book value of the goodwill in the asset group or the combination of asset groups and then will be
used to offset the book value of other assets pro rata in accordance with the proportion of the book value of other assets
other than goodwill in the asset groups and that of the combination of asset groups.Once recognized the above impairment losses are not reversed in subsequent accounting periods.
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 periodANNUAL REPORT 2025
29. Contract liabilities
√ Applicable Not applicable
The Group presents contract assets or liabilities in the balance sheet according to the relationship between the
performance of contract 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.
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 performanceSection VIII Financial Report
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.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 to
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 ofANNUAL REPORT 2025
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.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 the
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. Based
on input method the Group determines the performance progress of the services based on the cost incurred. 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.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;Section VIII Financial Report
(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:
(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.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 (31). 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 additionANNUAL REPORT 2025
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 person
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 acquisition construction or other formation of the long-term assets as
required by the government documents they are the assets-related government subsidies; if government documentsSection VIII Financial Report
have no relevant provisions and such government subsidies are based on the condition of the acquisition construction
or other formation 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 expenses or losses to be incurred
in subsequent periods will be recognized as deferred income and included in profit or loss over the periods in which
the relevant costs expenses or losses are recognized; those used to compensate for relevant costs expenses or losses
already incurred are included directly in profit or loss for the current period.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 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 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 forANNUAL REPORT 2025
all or part of the deferred income tax assets to be reversed.Deferred income tax assets and deferred income tax liabilities meeting both of the following conditions will be presented
by net amount after offset: the Group has a legally enforceable right to offset current tax assets against current tax
liabilities; and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on the same taxable entity or on different taxable entities that intend either to settle current tax assets and
current tax liabilities on a net basis or to realize the assets and settle the liabilities simultaneously in each future period in
which significant amounts of deferred tax assets or deferred tax liabilities are expected to be reversed.
38. Lease
√ Applicable Not applicable
Judgment basis and accounting treatment method for simplified treatment of short-term leases and low-value asset
leases as a lessee
√ Applicable Not applicable
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 leasing 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. Variable lease
payments not included in the measurement of lease liabilities are recognized in profit or loss for the current period when
incurred 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
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.Section VIII Financial Report
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 significant accounting policies and accounting estimates
√ Applicable Not applicable
Work safety expenses
The Company withdraws the work safety expenses according to provisions includes them in the cost of related products
or the current profit or loss and includes them in special reserves at the same time. The costs are handled separately
depending on whether they form fixed assets: when withdrawn work safety expenses are used within the prescribed
range and belong to expenses such costs shall be directly deducted from special reserves; where a fixed asset is formed
the expenses incurred through collection are recognized as the fixed asset when it is ready for its intended use and the
equivalent special reserve is written off and the equivalent accumulated depreciation is confirmed.Fair value measurement
For assets and liabilities measured at or disclosed by their fair value in the financial statements the level of the
measurement result of fair value shall subject to the lowest level which the input having great significance to the entire
measurement of fair value belongs to: Level 1 inputs refer to quoted prices (unadjusted) in active markets for identical
assets or liabilities available on the measurement date; Level 2 inputs refer to inputs that are directly or indirectly
observable for the assets or liabilities other than Level 1 inputs; Level 3 inputs refer to unobservable inputs of the relevant
assets or liabilities.On each balance sheet date the Group reevaluates the assets and liabilities continuously measured at fair value 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 part of its accounts receivable and contract assets (“trust property”) and entrusts the assets to a
structured entity which issues senior asset-backed securities to investors. After paying the trust tax burden and relevant
expenses trust property is given priority to pay to principal and interest of senior asset-backed securities. After paying
all principal and interest remaining trust property will be regarded as earnings of subordinated asset-backed securities
which belongs to the holders of subordinated asset-backed securities.For the financial asset securitization business the Group first analyzes whether the structured entity should be
consolidated based on the subordinated shares held the performance remuneration enjoyed and the rights held. If the
Group retains the contractual right to receive cash flows from financial assets but assumes the contractual obligation to
pay the cash flows received to one or more final recipients the Group shall determine the relevant accounting treatment
in accordance with Note V considering the risk and reward of the assets transferred to other entities if and only if the
following three conditions are met at the same time otherwise the Group continues to recognize the transferred financial
assets: the Group is obliged to pay the cash flows to the final recipient only when it receives equivalent cash flows from
the financial assets; the transfer contract prohibits the Group from selling or pledging such financial assets but the Group
can use it as a guarantee for the obligation to pay cash flows to the final recipient; and the Group is obliged to transfer all
cash flows collected on behalf of the final recipient to the final recipient in a timely manner without significant delay.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 hypotheses
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 aANNUAL REPORT 2025
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.Uncertainty of estimation
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 future accounting
periods.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 higher
than the recoverable amount that is the higher of the net amount from fair value less the disposal expense and theSection VIII Financial Report
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 estimatesFor details see “Analysis and explanation of the Company of the causes and the impacts of the major changes inaccounting policies and accounting estimates or correction of significant accounting errors” under “Important Events.”
41. First-time implementation of new accounting standards or interpretations of standards from 2025
onwards involves adjustments to the financial statements at the beginning of the year of first-time
implementation
Applicable √ Not applicable
42. Others
Applicable √ Not applicable
VI. Taxes
1. Main tax categories and tax rates
Main tax categories and tax rates
√ Applicable Not applicable
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
tax calculated by applicable tax is applicable to VAT and the output tax is calculated as per 13% of the taxable income; the
VAT
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
a n d c o n s t r u c t i o n 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
the Certification of High-tech Enterprises (GKFH [2016] No. 32) and the Guidelines for
Enterprise income tax Taxable income
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 (2024: 15%).Disclosure regarding taxpayers subject to different enterprise income tax rates
√ Applicable Not applicableANNUAL REPORT 2025
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%
Shanghai Zhenhua Heavy Industries Group (Nantong) Transmission Machinery Co. Ltd. 15%
Shanghai Zhenhua Heavy Industries Technology Co. Ltd. (formerly known as: 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%
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 25%
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 22%
GPO Heavylift Pte Ltd 17%
ZPMC Latin America Holding Corporation 5%
Terminexus Co. Ltd. 16.5%Section VIII Financial Report
Name of taxpayer Income tax rate (%)
ZPMC Southeast Asia Pte. Ltd 17%
CCCC Yongjia Construction Development Co. Ltd. 25%
CCCC Zhenhua Lvjian Technology (Ningbo) Co. Ltd. 25%
Shanghai Zhenhua Smart Commercial Management Co. Ltd. (formerly known as: 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%
ZPMC Group (Hainan) Co. Ltd. 25%
CCCC Zhenhua Offshore Hoisting and Pipe-Laying Core Equipment Engineering Technology (Shanghai) Co. Ltd. 25%
2. Tax preferences
√ Applicable Not applicable
Shanghai Zhenhua Port Machinery Heavy Industries Co. Ltd. obtained the “Hi-tech Enterprise Certificate” (No.:
GR202231000204) in October 2022 and the renewed “Hi-tech Enterprise Certificate” (No.: GR202531004770) in December
2025 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) in November 2024 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
and the renewed “Hi-tech Enterprise Certificate” (No.: GR202532004317) in November 2025 with the valid term of 3
years. Shanghai Zhenhua Heavy Industries Technology Co. Ltd. (formerly known as: ZPMC Electric Co. Ltd.) obtained the
“Hi-tech Enterprise Certificate” (No.: GR202331003809) in December 2023 with the valid term of 3 years. In accordance
with relevant provisions in Article 28 of the Enterprise Income Tax Law these companies actually applied the enterprise
income tax rate of 15% this year (2024: 15%).
3. Others
Applicable √ Not applicable
VII. Notes to the main items of the consolidated financial statements
1. Monetary funds
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Cash on hand 244362 266397
Bank deposits 3412074224 4102990169
Other monetary funds 28075380 43651264
Deposits with finance companies 1129883165 1719919382
Total 4570277131 5866827212
Including: Total amount of overseas deposits 928960722 701158127
Other description:
NoneANNUAL REPORT 2025
2. Held-for-trading financial assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Reasons and basis for
Item Closing balance Opening balance
designation
Financial assets measured at fair value through the current profit or loss 403446171 534200582 /
Including:
Investment in listed company stocks 403446171 534200582 /
Financial assets designated to be measured at fair value through the current
profit or loss
Total 403446171 534200582 /
Other description:
√ Applicable Not applicable
As at December 31 2025 the listed company share investments held by the Group include 2.03% equity of Jiangxi Huawu
Brake Co. Ltd. and 0.94% equity of CRSC.
3. Derivative financial assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Derivative financial instruments 8438278 8438278
Total 8438278 8438278
Other description:
As at December 31 2025 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.
4. Notes receivable
(1) Presentation of notes receivable by category
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Banker’s acceptance bills 149325265 -
Commercial acceptance bills - 50000000
Total 149325265 50000000
(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 applicableSection VIII Financial Report
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) Movements in 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) Notes receivable actually written off in the current period
Applicable √ Not applicable
Write-off of significant notes receivable:
Applicable √ Not applicable
Explanation of write-off of notes receivable:
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
5. Accounts receivable
(1) Disclosure by aging
√ Applicable Not applicable
Unit: RMB Currency: CNY
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 5353736518 5329641004
Sub-total of items within 1 year 5353736518 5329641004
1-2 years 2247149762 1303771299
2-3 years 967413970 755148515
Over 3 years
3-4 years 689020179 364667805
4-5 years 210386723 748692080
Over 5 years 2502568257 1881684558
Total 11970275409 10383605261
(2) Disclosure by bad debt calculation method
√ Applicable Not applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion of Book value Proportion Proportion of Book value
Amount Amount Amount Amount
(%) provision (%) (%) provision (%)
Provision for bad debts accrued
104961692791049616927100-90060532598293559949271249331
on an individual basis
Including:
Provision for bad debts accrued
104961692791049616927100-90060532598293559949271249331
on an individual basis
Provision for bad debts by
109206584829124348346732284858238099482999936912188455806237294544130
portfolio
Including:
Aging portfolio 10920658482 91 2434834673 22 8485823809 9482999936 91 2188455806 23 7294544130
Total 11970275409 / 3484451600 / 8485823809 10383605261 / 3017811800 / 7365793461
Individual provision for bad debts:
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Provision for bad debts accrued on
1049616927 1049616927 100 Counterparty financial shortage
an individual basis
Total 1049616927 1049616927 100 /
Description of individual provision for bad debts:
√ Applicable Not applicable
December 31 2024
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Provision for bad debts accrued on
900605325 829355994 92 Counterparty financial shortage
an individual basis
Total 900605325 829355994 92 /
Provision for bad debts by portfolio:
√ Applicable Not applicable
Items accrued by portfolio: Aging portfolio
Unit: RMB Currency: CNY
December 31 2025
Name
Book balance Provision for bad debts Proportion of provision (%)
Within 1 year 5353736517 283155658 5
1-2 years 2247149762 354974615 16
2-3 years 962856071 239366401 25
3-4 years 688979679 268777079 39
4-5 years 197941272 120069438 61
Over 5 years 1469995181 1168491482 79
Total 10920658482 2434834673
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 applicableSection VIII Financial Report
Basis for division of each stage and proportion of provision for bad debt
None
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) Movements in provision for bad debts
Applicable √ Not applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
There were no recoveries or reversals of provision for bad debts with significant amount in the year.
(4) Accounts receivable actually written off in the current period
Applicable √ Not applicable
Write-off of significant 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:
December 31 2025 December 31 2024
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 5353736517 5 283155658 5329749390 5 286132100
1-2 years 2247149762 16 354974615 1299177300 17 226038205
2-3 years 962856071 25 239366401 755108015 24 179470493
3-4 years 688979679 39 268777079 354323959 56 199934817
4-5 years 197941272 61 120069438 649274788 66 427222231
Over 5 years 1469995181 79 1168491482 1095366484 79 869657960
Total 10920658482 2434834673 9482999936 2188455806
There were no recoveries or reversals of provision for bad debts with significant amount in the year.As at December 31 2025 the top five accounts receivable and contract assets are as follows:
Proportion in total Closing balance of provision for
Closing balance of
Closing balance of Closing balance of closing balance of bad debts of accounts receivable
accounts receivable
accounts receivable contract assets accounts receivable and and provision for impairment of
and contract assets
contract assets (%) contract assets
Customer 1 432582000 309938522 742520522 5 -
Customer 2 128713924 582720851 711434775 5 589114972
Customer 3 562466589 110038073 672504662 4 107191201
Customer 4 484585738 10732978 495318716 3 100185865
Customer 5 - 481487143 481487143 3 -
Total 1608348251 1494917567 3103265818 20 796492038ANNUAL REPORT 2025
6. Contract assets
(1) Particulars about contract assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Provision for Provision for
Book balance Book value Book balance Book value
bad debts bad debts
Warranty balance recognized at the time
84700179012169078772531100314337876851445256031289262082
of control transfer (Note 1)
Outstanding payments for construction
2873226853528619379234460747427503872491420021152608385134
completed (Note 2)
Total 3720228643 650310166 3069918477 4184174934 286527718 3897647216
Note 1: The Group sells equipment to customers and provides related installation services which constitute 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.Note 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.
(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: RMB Currency: CNY
December 31 2025 December 31 2024
Book balance Provision for bad debts Book balance Provision for bad debts
Category
Proportion Proportion of Book value Proportion Proportion of Book value
Amount Amount Amount Amount
(%) provision (%) (%) provision (%)
Provision for bad debts
accrued on an individual 582720851 16 460401048 79 122319803
basis
Including:
Provision for bad debts
31375077928418990911862947598674418417493410028652771873897647216
by portfolio
Including:
Total 3720228643 / 650310166 / 3069918477 4184174934 / 286527718 / 3897647216
Individual provision for bad debts:
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Contract asset 1 582720851 460401048 79 Counterparty financial shortage
Total 582720851 460401048 79 /Section VIII Financial Report
Description of individual provision for bad debts:
Applicable √ Not applicable
Provision for bad debts by portfolio:
√ Applicable Not applicable
Items accrued by portfolio: Contract assets
Unit: RMB Currency: CNY
December 31 2025
Name
Book balance Provision for bad debts Proportion of provision (%)
Within 1 year 2585786780 106808357 4
1-2 years 365608771 76347172 21
2- 3 years 186112241 6753589 4
Over 3 years - - -
Total 3137507792 189909118
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
Basis for division of each stage and proportion of provision for bad debt
None
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: RMB Currency: CNY
Increase/decrease in the current period
December 31 Write-off/Provision in Recovery or December 31 Item charge-off in Other Reason2024 the current reversal in the 2025
the current changes
period current period
period
Warranty balance recognized at the
144525603227598050-250432866--121690787
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
142002115389571028--2953764-528619379
construction completed
Total 286527718 617169078 -250432866 -2953764 - 650310166 /
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
None
(5) Contract assets actually written off in the current period
Applicable √ Not applicable
Write-off of significant contract assets
Applicable √ Not applicableANNUAL REPORT 2025
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 applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Banker’s acceptance bills 178884505 106533734
Digital debt voucher of accounts receivable 306484775 543727150
Total 485369280 650260884
(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: RMB Currency: CNY
Item Derecognition amount at the end of period Amount not derecognized at the end of period
Banker’s acceptance bills 507329316
Digital debt voucher of accounts receivable 31172179
Total 538501495
(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
Basis for division of each stage and proportion of provision for bad debt
None
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) Movements in provision for bad debts
Applicable √ Not applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicableSection VIII Financial Report
Other description:
None
(6) Receivables financing actually written off in the current period
Applicable √ Not applicable
Write-off of significant 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 applicable
(8) Other description
Applicable √ Not applicable
8. Advances to suppliers
(1) Presentation of advances to suppliers by aging
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 624263865 76 841302248 82
1-2 years 125548407 15 129466008 12
2-3 years 43577058 5 10069526 1
Over 3 years 28846041 4 50780077 5
Total 822235371 100 1031617859 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 2025 the advances to suppliers of the Company with the aging over one year was RMB 197971506 (as
at December 31 2024: RMB 190315611) 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 been received.
(2) Top 5 advances to suppliers in terms of ending balance presented by prepaid object
√ Applicable Not applicable
Unit: RMB Currency: CNY
Name December 31 2025 Proportion in total ending balance of prepayment(%)
Total advances to suppliers of top 5 balances 349322747 42
Total 349322747 42
Other description: None
Other description:
Applicable √ Not applicable
9. Other receivables
Item presentation
√ Applicable Not applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Interest receivable
Dividends receivable
Other receivables 704236518 780170637
Total 704236518 780170637
Other description:
Applicable √ Not applicable
Interest receivable
(1) Classification of interest receivable
Applicable √ Not applicable
(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
Basis for division of each stage and proportion of provision for bad debt
None
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) Movements in 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
Write-off of significant interest receivable
Applicable √ Not applicable
Note to write-off:
Applicable √ Not applicableSection VIII Financial Report
Other description:
Applicable √ Not applicable
Dividends receivable
(7) Dividends receivable
Applicable √ Not applicable
(8) Significant dividends receivable aging over 1 year
Applicable √ Not applicable
(9) 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
(10) 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
(11) Movements in provision for bad debts
Applicable √ Not applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
None
(12) Dividends receivable actually written off in the current period
Applicable √ Not applicable
Write-off of significant dividends receivable
Applicable √ Not applicable
Note to write-off:
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
Other receivables
(13) Disclosure by aging
√ Applicable Not applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 594424667 508829137
Sub-total of items within 1 year 594424667 508829137
1-2 years 149672829 241190490
2-3 years 36691808 50907248
Over 3 years
3-4 years 25156181 6025630
4-5 years 5909666 2506517
Over 5 years 229351947 228793347
Total 1041207098 1038252369
(14) Classification by nature of funds
√ Applicable Not applicable
Unit: RMB Currency: CNY
Nature of funds Ending book balance Beginning book balance
Unpaid taxes receivable 454366095 466217590
Receivables from third parties 175513997 93031724
Secured repayment 164124678 164124678
Customs deposits 42995456 38282346
Bid and performance bonds 40525698 64665781
Export rebates 9403237 14877279
Money on call of on-site product service 9284072 14527162
Lease payment receivable 8984183 11849430
Staff loan receivable 6160325 9565349
Others 129849357 161111030
Total 1041207098 1038252369
(15) Provision for bad debts
√ Applicable Not applicable
Unit: RMB Currency: CNY
Stage I Stage II Stage III
Provision for bad debts Expected credit loss for the Expected credit loss for Expected credit losses Total
entire duration (no credit the entire duration (credit
over the next 12 months
impairment) impairment occurred)
Balance as of January 1 2025 65136458 192945274 258081732
Balance as of January 1 2025 during the
reporting period
--Transferred to Stage II
--Transferred to Stage III -65227268 65227268
--Reversal to Stage II
--Reversal to Stage I
Provision in the current period 11103628 68814568 79918196
Reversal in the current period -1029348 -1029348
Write-off in the current period
Charge-off in the current period
Other changes
Balance as of December 31 2025 9983470 326987110 336970580Section VIII Financial Report
Basis for division of each stage and proportion of provision for bad debt
None
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
(16) Movements in provision for bad debts
Applicable √ Not applicable
The reversed or recovered provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
None
(17) Other receivables actually written off in the current period
Applicable √ Not applicable
Write-off of other significant accounts receivable:
Applicable √ Not applicable
Explanation of write-off of other receivables:
Applicable √ Not applicable
(18) Top 5 other receivables in terms of ending balance presented by debtor
√ Applicable Not applicable
Unit: RMB Currency: CNY
Proportion in the Balance of provision
December 31
Name total balance of other Nature Aging for bad debts as at
2025
receivables (%) December 31 2025
ZPMC-Red Box Energy Services Guarantee payment receivable
164124678 16 Over 5 years 164124678
Limited under letter of guarantee
Anhui Shenghua Construction Advances paid on behalf of
119826653 12 1-2 years 68814568
Engineering Co. Ltd. third parties receivable
Shandong Lanqiao Petrochemical
65227269 6 Unpaid taxes receivable Over 5 years 65227269
Co. Ltd.Cinda Financial Leasing Co. Ltd. 54820885 5 Unpaid taxes receivable Within 1 year -
Shanghai Customs of the People’s
42995456 4 Customs deposits Within 1 year -
Republic of China
Total 446994941 43 / / 298166515
(19) Presented in other receivables due to centralized fund management
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
10. Inventories
(1) Classification
√ Applicable Not applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Provision for inventory Provision for inventory
Item depreciation/ provision depreciation/ provision
Book balance for impairment of Book value Book balance for impairment of Book value
contract performance contract performance
cost cost
Raw materials 3561532717 51081418 3510451299 3551885045 48398643 3503486402
Goods in process 20241057348 239485922 20001571426 20903827913 348283907 20555544006
Stock commodities 44303325 44303325 43070855 43070855
Revolving materials
Consumptive
biological assets
Contract
308652468308652468452483403452483403
performance cost
Total 24155545858 290567340 23864978518 24951267216 396682550 24554584666
(2) Data resources recognized as inventory
Applicable √ Not applicable
(3) Provision for inventory depreciation and provision for impairment of contract performance cost
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 Increase in the current period Decrease in the current period
Item December 31 2025
2024 Provision Others Reversal or write- off Others
Raw materials 48398643 10691409 -8008634 51081418
Goods in process 348283907 141621159 -250419144 239485922
Stock commodities
Revolving materials
Consumptive biological assets
Contract performance cost
Total 396682550 152312568 -258427778 290567340
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: RMB Currency: CNY
Ending Beginning
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 3180870602 3047281403
1-2 years 92969043 249237321
2-3 years 83822161 4191108 5 57420060 2871003 5
Over 3 years 203870911 46890310 23 197946261 45527640 23
Total 3561532717 51081418 3551885045 48398643
Standards of accrual of provision for inventory depreciation by portfolio
Applicable √ Not applicableSection VIII Financial Report
(4) Amount of capitalized borrowing costs 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:
Reasons for reversing or writing off the provision for
Specific basis for determination of net realizable values
inventory depreciation in the year
R a w m a t e r i a l s a n d Difference between the net realizable value of raw materials and
outsourced parts and outsourced parts and components and their book value resulting Value recovery consuming or external sales
components from product price fall
Difference between the net realizable value and the book value
Goods in process Value recovery transferred for self-use or external sales
of goods in process
Total amount of possible penalties for failure to fulfill the obligations as contracted:
20252024
Valid letter of guarantee signed by the bank 18063416868 17995858329
Letter of guarantee not signed by the bank 6833913584 8171573376
Total 24897330452 26167431705
11. Assets held for sale
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 Provision for Book value at the Estimated Expected
Item Fair value
2025 impairment end of the period disposal costs disposal date
Buildings constructions land use
12327736 12327736 52569961 April 2026
rights and mechanical equipment
Total 12327736 12327736 52569961 /
Other description:
None
12. Non-current assets due within one year
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Debt investment due within one year
Other debt investments due within one year
Long-term receivables due within one year 888580054 1346060900
Total 888580054 1346060900
Debt investment due within one year
Applicable √ Not applicable
Other debt investments due within one year
Applicable √ Not applicable
Other description on non-current assets due within one year: NoneANNUAL REPORT 2025
13. Other current assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Contract acquisition cost
Return cost receivable
Input tax to be deducted 1335138235 853758031
Prepaid income tax 3486755 4396501
Total 1338624990 858154532
Other description: None
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) Significant debt investment at the end of the period
Applicable √ Not applicable
(3) Provision for impairment
Applicable √ Not applicable
Basis for division of each stage and proportion of provision for impairment:
None
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 applicable
Write-off of significant 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 applicableSection VIII Financial Report
(2) Other significant debt investment at the end of the period
Applicable √ Not applicable
(3) Provision for impairment
Applicable √ Not applicable
Basis for division of each stage and proportion of provision for impairment:
None
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
Write-off of other significant 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) Particulars about long-term receivables
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Discount
Item Provision Provision rate
Book balance for bad Book value Book balance for bad Book value range
debts debts
Financing lease
Including: Unrealized financing income
Goods sold on installment 189446337 189446337 272270359 272270359
Including: Unrealized financing income -6425303 -6425303 -16883031 -16883031
Services provided on installment
Receivables from “Build-Transfer” project
- Principal 1414230352 1414230352 1780292870 1780292870
- Interest receivable 547692878 547692878 374755734 374755734
Less: Long-term receivables due within one year 888580054 888580054 1346060900 1346060900
Total 1262789513 1262789513 1081258063 1081258063 /
As at December 31 2025 and December 31 2024 the principal of receivables under the “Build-Transfer (BT)” projects
represented the funds invested by the Group in the BT projects and the interest receivable represented the financing
return recognized in accordance with the contracts.ANNUAL REPORT 2025
As at December 31 2025 long-term receivables of RMB 1015896808 (December 31 2024: RMB 1140307484) had been
pledged to banks as security for long-term borrowings of RMB 3053934248 (December 31 2024: long-term borrowings
of RMB 3031253334).
(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
Basis for division of each stage and proportion of provision for bad debt
None
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) Movements in provision for bad debts
Applicable √ Not applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
None
(5) Long-term receivable actually written off in the current period
Applicable √ Not applicable
Write-off of significant long-term accounts receivable
Applicable √ Not applicable
Explanation of write-off of long-term receivables:
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
17. Long-term equity investments
(1) Long-term equity investments
√ Applicable Not applicableSection VIII Financial Report
Unit: RMB Currency: CNY
Increase/decrease in the current period
Opening
Beginning Profit or loss Adjustment Cash dividends Ending Ending balance balance of
Investee Balance (book
provision for Further Reduced on investments of other Changes in or profit Provision for
Balance (book of provision for
value) Others
impairment investment investment under the equity comprehensive other equity declared to be impairment
value) impairment
method income distributed
I. Joint ventures
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 367895744 1494259 369390003
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 385318 -385318
ZOSG-OTL Marine Contractor Limited
ZPMC-Red Box Energy Services Limited (i)
Sub-total 368281062 1108941 369390003
II. Associates
CCCC Financial Leasing Co. Ltd. (ii) 661178256 53729432 535694 670318 -12247158 703866542
CCCC Yancheng Construction Development Co. Ltd. 402530473 19681108 422211581
CCCC Estate Yixing Co. Ltd. 203058465 -10388856 192669609
China communications Construction USA Inc. 62247180 2374 -1364199 60885355
CCCC Photovoltaic Technology Co. Ltd. 37851683 -40050855 2199172
ZPMC Changzhou Coatings Co. Ltd. 24395594 8701592 -3849580 29247606
CCCC Xiongan Urban Construction Development Co. Ltd. (iii) 7609896 491363 8101259
Shanghai Xingyi Construction Technology Co. Ltd.Sub-total 1398871547 -40050855 74416185 -828505 670318 -16096738 1416981952
Total 1767152609 -40050855 75525126 -828505 670318 -16096738 1786371955
(2) Impairment test of long-term equity investments
Applicable √ Not applicable
Other description:
Joint ventures
(i) On May 5 2014 a subsidiary of the Company and its partner invested to establish ZPMC-Red Box Energy Services Limited (hereinafter referred to as “ZPMC-RB”). The
registered capital of the company is USD 5969998 of which the Company’s subsidiary contributed USD 3044699 representing a 51% stock equity. The company is
principally engaged in vessel transportation services. Based on the relevant provisions of the shareholders’ agreement of the company major corporate matters require
the approval of shareholders holding no less than 75% of the voting shares. Hence the Group has no control over the company but jointly controls it with the partner.Associates
(ii) In 2025 the Company held a 5.82% stock equity in 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 is able to exercise significant influence over it.(iii) On June 23 2020 the Company participated in the establishment of CCCC Xiongan Urban Construction Development Co. Ltd. through an equity investment. The
registered capital of the company is RMB 100000000 of which the Company subscribed RMB 15000000 representing a 15% stock equity. The company is principally
engaged in engineering construction. According to the relevant provisions of the company’s articles of association the Company is entitled to appoint one director to
the company and is able to exercise significant influence over it.ANNUAL REPORT 2025
18. Other equity instrument investment
(1) Particulars about other equity instrument investment
√ Applicable Not applicable
Unit: RMB Currency: CNY
Increase/decrease in the current period
Dividend Accumulated Accumulated
Gains included Losses included Reasons for financial assets income gains included losses included
Beginning in other in other Ending designated to be measured Item recognized in other in other
Balance Further Reduced comprehensive comprehensive Others Balance at fair value through other
investment investment in the current comprehensive comprehensive
income in the income in the comprehensive incomeperiod income income
current period current period
Strategic investment long-
Hunan Fengri Power & Electric Co. Ltd. 33199200 12794405 45993605 171626 25995445
term holding
CCCC Highway Bridges National Engineering Research Centre Co. Strategic investment long-
131790192056259152352786135278
Ltd. term holding
Strategic investment long-
Ningbo Weilong Port Machinery Co. Ltd. 24208224 9088405 33296629 30000629
term holding
CCCC National Engineering Research Center of Dredging Strategic investment long-
7937621161763895552593155260
Technology and Equipment Co. Ltd. term holding
Strategic investment long-
Shenyang Weichen Crane Equipment Co. Ltd. 9058100 -650558 8407542 6907541
term holding
Strategic investment long-
Shanghai Longchang Lifting Equipment Co. Ltd. 739815 -739815 -800000
term holding
Strategic investment long-
Nezha Port and Shipping Smart Technology (Shanghai) Co. Ltd. 26798909 -3501381 23297528 -6441396
term holding
Strategic investment long-
21st Century Science and Technology Investment Co. Ltd. -30000000
term holding
Strategic investment long-
Jiangsu Zhangjinggao Bridge Co. Ltd. 75410000 75410000
term holding
Total 190530888 25556707 -4891754 211195841 171626 72194153 -37241396 /
(2) Derecognition in the current period
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
19. Other non-current financial assets
Applicable √ Not applicable
Other description:
Applicable √ Not applicableSection VIII Financial Report
20. Investment properties
Measurement model of investment properties
(1) Investment properties using cost measurement mode
Unit: RMB Currency: CNY
Item Buildings and constructions Land use right Construction in progress Total
I. Original book value
1. Balance as at December 31 2024 580667465 209845794 790513259
2. Increase in current period
(1) Outsourcing
(2) Transfer-in of inventories fixed assets and
construction in progress
(3) Increase in business combination
3. Decrease in current period -77014533 -9490610 -86505143
(1) Disposal
(2) Transferred to assets held for sale -77014533 -9490610 -86505143
(3) Other transfer-out
4. Balance as at December 31 2025 503652932 200355184 704008116
II. Accumulative depreciation and amortization
1. Balance as at December 31 2024 290738491 93037013 383775504
2. Increase in current period 17468975 5344478 22813453
(1) Provision or amortization 17468975 5344478 22813453
3. Decrease in current period -65362589 -8814818 -74177407
(1) Disposal
(2) Transferred to assets held for sale -65362589 -8814818 -74177407
(3) Other transfer-out
4. Balance as at December 31 2025 242844877 89566673 332411550
III. Provision for impairment
1. Balance as at December 31 2024
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
(2) Other transfer-out
4. Balance as at December 31 2025
IV. Book value
1. Book value at the end of the period 260808055 110788511 371596566
2. Book value at the beginning of the period 289928974 116808781 406737755
(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 applicable
21. Fixed assets
Item presentation
Applicable √ Not applicableANNUAL REPORT 2025
Other description:
Applicable √ Not applicable
Fixed assets
(1) Particulars about fixed assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Office and Transportation
Buildings and Mechanical
Item electronic facilities Vessel Total
constructions equipment
equipment (excluding ship)
I. Original book value:
1. Balance as at December 31 2024 11671940827 7077278826 411081894 250233897 21406653850 40817189294
2. Increase in current period 69661774 318998531 36362390 5053807 349615756 779692258
(1) Purchase 25378696 106704402 36223296 4996285 32274206 205576885
(2) Transfer-in of construction in progress 44283078 212174767 57522 317341550 573856917
(3) Increase in business combination
(4) Exchange rate changes 119362 139094 258456
3. Decrease in current period -4271358 -194541064 -19909295 -12814370 -213739991 -445276078
(1) Disposal or scrap -4271358 -194541064 -19909295 -12814370 -121982759 -353518846
(2) Exchange rate changes -91757232 -91757232
4. Balance as at December 31 2025 11737331243 7201736293 427534989 242473334 21542529615 41151605474
II. Accumulated depreciation
1. Balance as at December 31 2024 5682039292 5483353346 318290224 162978655 5479830574 17126492091
2. Increase in current period 379822541 251432680 28966962 13002453 772023968 1445248604
(1) Provision 379822541 251432680 28966962 13002453 772023968 1445248604
(2) Exchange rate changes
3. Decrease in current period -2872264 -192182575 -19037982 -12211692 -102126766 -328431279
(1) Disposal or scrap -2872264 -192081301 -18569921 -12211692 -80549227 -306284405
(2) Exchange rate changes -101274 -468061 - -21577539 -22146874
4. Balance as at December 31 2025 6058989569 5542603451 328219204 163769416 6149727776 18243309416
III. Provision for impairment
1. Balance as at December 31 2024
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal or scrap
4. Balance as at December 31 2025
IV. Book value
1. Book value at the end of the period 5678341674 1659132842 99315785 78703918 15392801839 22908296058
2. Book value at the beginning of the period 5989901535 1593925480 92791670 87255242 15926823276 23690697203
(2) Temporary idle fixed assets
Applicable √ Not applicable
(3) Fixed assets leased out through operating lease
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Book value at the end of the period
Vessel 3059506943Section VIII Financial Report
(4) Fixed assets without certificate of title
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Book value Reasons for pending certificate of title
Buildings and constructions 177169792 Related procedures are still in process
(5) Impairment test of fixed assets
Applicable √ Not applicable
Other description:
√ Applicable Not applicable
As at December 31 2025 the following fixed assets were taken as loan mortgage:
Borrowings
Original price Book value
Nature Amount
Vessel 2911782265 2294086970 Long-term payables 1149794159
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: RMB Currency: CNY
December 31 2025 December 31 2024
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Large machinery and engineering equipment of
971408359971408359960273753960273753
the base under construction
Infrastructure construction of Changxing Base 182442580 182442580 180920080 180920080
Infrastructure construction of Nantong Base 269132436 269132436 136668794 136668794
Large mechanical reconstruction and upgrading
18162541181625412382118423821184
project
Infrastructure construction of Nanhui Base 1987544 1987544 44990 44990
Total 1443133460 1443133460 1301728801 1301728801
(2) Changes of significant construction in progress
√ Applicable Not applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
Amount Other Proportion of Including: Capitalization
Cumulative
transferred decreases cumulative Capitalization rate for the
Beginning Increase in the Ending Construction amount Fund
Item Budget into fixed in the project of the interest interest in
Balance current period Balance progress of interest source
assets in the current investment in in the current the current
capitalized
current period period budget (%) period period (%)
Infrastructure Self-
construction of 8555716771 136668794 218466292 -86002650 269132436 84 84 owned
Nantong Base funds
Self-
Infrastructure
owned
construction of 9109560500 180920080 52695707 -51173207 182442580 80 80 31366066 4634772 2.14
funds and
Changxing Base
bank loans
Large machinery
Self-
and engineering
owned
equipment of 13027963390 960273753 413594611 -402460005 971408359 80 80 359989831 16589566 1.54
funds and
the base under
bank loans
construction
Infrastructure Self-
construction of 562287425 44990 1942554 1987544 88 88 owned
Nanhui Base funds
Large mechanical
Self-
reconstruction
3179166710 23821184 28562412 -34221055 18162541 63 63 owned
and upgrading
funds
project
Total 34434694796 1301728801 715261576 -573856917 1443133460 / / 391355897 21224338 / /
(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
(5) Particulars about engineering materials
Applicable √ Not applicable
23. Productive biological assets
(1) Productive biological assets using 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 at fair value
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
24. Oil and gas assets
(1) Particulars about oil and gas assets
Applicable √ Not applicable
(2) Impairment test of oil and gas assets
Applicable √ Not applicableSection VIII Financial Report
Other description: None
25. Right-of-use assets
(1) Particulars about right-of-use assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Buildings and constructions Other equipment Total
I. Original book value
1. Balance as at December 31 2024 83818121 4036336 87854457
2. Increase in current period 5943773 5943773
(1) Additions 5943773 5943773
3. Decrease in current period -4456910 -4456910
(1) Disposal -4456910 -4456910
4. Balance as at December 31 2025 85304984 4036336 89341320
II. Accumulated depreciation
1. Balance as at December 31 2024 46327861 3547292 49875153
2. Increase in current period 26282175 72720 26354895
(1) Provision 26282175 72720 26354895
3. Decrease in current period -4456910 -4456910
(1) Disposal -4456910 -4456910
4. Balance as at December 31 2025 68153126 3620012 71773138
III. Provision for impairment
1. Balance as at December 31 2024
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
4. Balance as at December 31 2025
IV. Book value
1. Book value at the end of the period 17151858 416324 17568182
2. Book value at the beginning of the period 37490260 489044 37979304
(2) Impairment test of right-of-use assets
Applicable √ Not applicable
Other description: None
26. Intangible assets
(1) Particulars about intangible assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Concession Contract assets related
Item Land use right Software use fees Patent right Total
rights to PPP projects (Note 1)
I. Original book value
1. Balance as at December 31 2024 4147926622 150972213 65296171 1407723184 5771918190
2. Increase in current period 11989694 1511539882 124981379 1648510955
(1) Purchase 11989694 124981379 136971073
(2) Internal R&D
(3) Increase in business combination
(4) Conversion of contract assets of PPP projects 1511539882 1511539882ANNUAL REPORT 2025
Concession Contract assets related
Item Land use right Software use fees Patent right Total
rights to PPP projects (Note 1)
3. Decrease in current period -118731 -1511539882 -1511658613
(1) Disposal -118731 -118731
(2) Conversion of contract assets of PPP projects -1511539882 -1511539882
4. Balance as at December 31 2025 4147926622 162843176 65296171 1511539882 21164681 5908770532
II. Accumulated amortization
1. Balance as at December 31 2024 1221064184 97480916 65201807 1383746907
2. Increase in current period 84904841 16400731 27991479 129297051
(1) Provision 84904841 16400731 27991479 129297051
3. Decrease in current period -118539 -118539
(1) Disposal -118539 -118539
4. Balance as at December 31 2025 1305969025 113763108 65201807 27991479 1512925419
III. Provision for impairment
1. Balance as at December 31 2024
2. Increase in current period
(1) Provision
3. Decrease in current period
(1) Disposal
4. Balance as at December 31 2025
IV. Book value
1. Book value at the end of the period 2841957597 49080068 94364 1483548403 21164681 4395845113
2. Book value at the beginning of the period 2926862438 53491297 94364 1407723184 4388171283
As of the end of the reporting period intangible assets generated through the Company’s internal R&D accounted for 0%
of the balance of intangible assets.Note 1: This item represents the portion that recognizes the consideration amount or the recognized constructionrevenue amount of relevant PPP project assets as intangible assets in accordance with the requirements of “Interpretationof 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 2025
the Group still had one PPP project under the intangible asset model that was under construction. The total planned
investment of the project is RMB 1.02 billion with cumulative investment amounting to RMB 20 million.As at December 31 2025 intangible assets of RMB 1483548403 (December 31 2024: RMB 1387620730) had been
pledged to banks as security for long-term borrowings of RMB 3053934248 (December 31 2024: long-term borrowings
of RMB 3031253334).In 2025 total technology research and development expenses of the Group amounted to RMB 1515374795 (2024: RMB
1502397344). None of such technology research and development expenses was 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 applicableSection VIII Financial Report
27. Goodwill
(1) Original book value of goodwill
√ Applicable Not applicable
Unit: RMB Currency: CNY
Balance as at Increase in current period Decrease in current period Balance as at
Name of the invested entity or the matters
December 31 December 31
forming goodwill Formed by business
2024 Others Disposal Others (Note 1) 2025
combination
ZPMC Qidong Marine Engineering Co. Ltd. 149212956 149212956
Verspannen B.V. 5412807 5412807
Greenland Heavy lift (Hong Kong) Limited 117270985 2603702 114667283
Total 271896748 2603702 269293046
Note 1: The decrease during the current year was attributable to exchange differences arising on translation of foreign currency financial statements.
(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
As at December 31 2025 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.ANNUAL REPORT 2025
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 using a cash flow forecast method. Cash flows beyond the five-year period are extrapolated using a
perpetual growth rate.Key assumptions adopted under the discounted future cash flow method:
Growth rate during forecast period 5.82%-11.16%
Perpetual growth rate 2.00%
Gross profit rate 13.21%-14.29%
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.Key assumptions adopted under the discounted future cash flow 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 99000/day
Pre-tax discount rate 11.00%
The distributions of the book value of goodwill to asset groups are as follows:
Heavy equipment asset group GHHL semi-submerged ship transport assets group Total
202520242025202420252024
Book amount of goodwill 154625763 154625763 114667283 117270985 269293046 271896748
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: RMB Currency: CNY
Increase in the Amortization in
Item December 31 2024 Other decreases December 31 2025
current period the current period
Improvement expenditure of fixed assets under
15934471421364-10544321960379
operating lease
Total 1593447 1421364 -1054432 1960379Section VIII Financial Report
Other description:
None
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets before offsetting
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
differences assets differences assets
Provision for impairment of assets 4252584275 640608988 3461041250 520335376
Deductible loss 1697313944 254597092 2291484194 343722629
Estimated liabilities 293237822 43985673 181513116 27226967
Unrealized profits of internal transactions 234105767 35115865 134528300 20179245
Wages and salaries unpaid 66156819 9923523 29257710 4388657
Lease liabilities 17568182 2635227 37979304 5696896
Unrealized contract gross profit 14840612 2226092 37559913 5633987
Interest unpaid 8805887 1320883 14976485 2246474
Total 6584613308 990413343 6188340272 929430231
(2) Deferred income tax liabilities before offsetting
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
differences liabilities differences liabilities
Depreciation of fixed assets 1129901920 179715003 934599097 147493299
Changes in fair value of held-for-trading financial assets 99151290 14872694 128576476 19365924
Right-of-use assets 17568182 2635227 37979304 5696896
Valuation of enterprise combination assets not under
6202414393036217100287410650431
the same control
Changes in fair value of other equity instruments 64952756 9742913 44287803 6643170
Total 1373598291 216269458 1216445554 189849720
(3) Deferred income tax assets or liabilities presented by net amount after offset
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Offset amount of deferred Balance of deferred income Offset amount of deferred Balance of deferred income
income tax assets and tax assets and liabilities income tax assets and tax assets and liabilities
liabilities after offset liabilities after offset
Deferred income tax assets 37629756 952783587 52161198 877269033
Deferred income tax liabilities 37629756 178639702 52161198 137688522
(4) Details of unrecognized deferred income tax assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Deductible temporary differences 1093836905 837136068
Deductible loss 718759053 1071390149
Total 1812595958 1908526217ANNUAL REPORT 2025
(5) The deductible losses on the unrecognized deferred income tax assets will become due in the following years
√ Applicable Not applicable
Unit: RMB Currency: CNY
Year December 31 2025 December 31 2024 Remark
2025228570806
2026184898613269170078
2027203723820225569918
2028208328358210141543
202968123988137937804
203053684274
Total 718759053 1071390149 /
Other description:
Applicable √ Not applicable
30. Other non-current assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
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 not settled 3549858559 3549858559 3876980634 3876980634
Contract warranty balance receivable 1151301454 90871806 1060429648 1022960486 91249280 931711206
Total 4701160013 90871806 4610288207 4899941120 91249280 4808691840
Other description:
As at December 31 2025 other non-current assets of RMB 3492464663 (December 31 2024: RMB 3819083104) had
been pledged to banks as security for long-term borrowings of RMB 3053934248 (December 31 2024: long-term
borrowings of RMB 3031253334).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
20259124928060937978-6131545290871806
20245900920582407827-5016775291249280
31. Assets with ownership or use rights restricted
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Book Restriction Restriction
Book value Restriction Book balance Book value Restriction
balance type type
Special fund L/C Special fund L/C deposits
deposits L/G deposits L/G deposits etc. in the
Monetary funds 28075380 28075380 Others 43651264 43651264 Others
etc. in the overseas overseas supervision
supervision account account
Notes receivable
InventoriesSection VIII Financial Report
December 31 2025 December 31 2024
Item Book Restriction Restriction
Book value Restriction Book balance Book value Restriction
balance type type
Including: Data
resources
Fixed assets 2911782265 2294086970 Mortgage Mortgage borrowings 2944891835 2416269819 Mortgage Mortgage borrowings
Intangible assets 1511539882 1483548403 Pledge Pledged borrowings 1387620730 1387620730 Pledge Pledged borrowings
Including: Data
resources
Other non-current
3492464663 3492464663 Pledge Pledged borrowings 3819083104 3819083104 Pledge Pledged borrowings
assets
Long-term
1015896808 1015896808 Pledge Pledged borrowings 1140307484 1140307484 Pledge Pledged borrowings
receivables
Accounts receivable 357764154 357764154 Pledge Pledged borrowings 352782386 352782386 Pledge Pledged borrowings
Contract assets 193452361 193452361 Pledge Pledged borrowings 203952618 203952618 Pledge Pledged borrowings
Total 9510975513 8865288739 / / 9892289421 9363667405 / /
Other description: None
32. Short-term borrowings
(1) Classification of short-term borrowings
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Pledged borrowings
Mortgage borrowings
Guaranteed borrowings
Fiduciary borrowings 3686556417 2297334457
Total 3686556417 2297334457
Description of the classification of short-term borrowings:
None
(2) Overdue outstanding short-term borrowings
Applicable √ Not applicable
The significant 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 applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
Type December 31 2025 December 31 2024
Commercial acceptance bills
Banker’s acceptance bills 4688600816 4584675393
Total 4688600816 4584675393
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 applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Payables for material purchase and product manufacturing 11726396457 9280899772
Infrastructure payables 544498518 810462550
Quality guarantee deposit payable 371468112 350540185
Equipment and vessel purchase payables 86896191 158211216
Port charge payable 3437431 3368393
Total 12732696709 10603482116
(2) Significant accounts payable with the aging over 1 year or overdue
Applicable √ Not applicable
Other description:
√ Applicable Not applicable
As of 2025 there were no significant accounts payable with the aging over 1 year or overdue (2024: nil).
37. Advances from customers
(1) Presentation of advances from customers
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Advances received for asset disposals 57376888
Total 57376888
(2) Significant 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
In 2025 there were no significant advances from customers with the aging over 1 year (2024: nil). The increase in the
closing balance of advances from customers was mainly due to advances received for asset disposals.
38. Contract liabilities
(1) Particulars about contract liabilities
√ Applicable Not applicableSection VIII Financial Report
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Advances from customers for goods 20504493417 20468881119
Amount settled for uncompleted work 1074695404 1016952048
Total 21579188821 21485833167
(2) Significant contract 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 2025 there were no significant contract liabilities with the aging over 1 year (2024: 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.
39. Payroll payable
(1) Presentation of payroll payable
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 Increase in current Decrease in current December 31
Item
2024 period period 2025
I. Short-term compensation 40189914 2368260883 -2368361619 40089178
II. Post-employment benefits - defined contribution plans 377443515 -377443515
III. Dismissal benefits
IV. Other benefits due within one year
Total 40189914 2745704398 -2745805134 40089178
(2) Presentation of short-term compensation
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 Increase in current Decrease in current December 31
Item
2024 period period 2025
I. Salaries bonuses allowances and subsidies 1891400526 -1891400526
II. Employee welfare 84222267 -84222267
III. Social insurance premium 151232740 -151232740
Including: Medical insurance premium 128954356 -128954356
Work-related injury insurance premium 12134049 -12134049
Maternity insurance premium 10144335 -10144335
IV. Housing provident funds 473 171755268 -171755741
V. Union expenditures and employee education expenses 40189441 34456474 -34556737 40089178
VI. Short-term paid absence
VII. Short-term profit sharing plan
VIII. Other short-term compensation 35193608 -35193608
Total 40189914 2368260883 -2368361619 40089178ANNUAL REPORT 2025
(3) Presentation of defined contribution plans
√ Applicable Not applicable
Unit: RMB Currency: CNY
Increase in current Decrease in current
Item December 31 2024 December 31 2025
period period
1. Basic endowment insurance premium 247409841 -247409841
2. Unemployment insurance premium 7741754 -7741754
3. Enterprise annuity payment
4. Supplementary endowment insurance
122291920-122291920
premium
Total 377443515 -377443515
Other description:
Applicable √ Not applicable
40. Tax payable
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
VAT 151510805 70408947
Urban maintenance and construction tax 108398668 111162731
Education surtax 78701963 79862503
Enterprise income tax 42584210 29004265
Individual income tax 30232364 30646014
Others 24398645 23145714
Total 435826655 344230174
Other description: None
41. Other payables
(1) Item presentation
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Interest payable
Dividends payable 105244272 6593
Other payables 1027648048 890043935
Total 1132892320 890050528
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 applicableSection VIII Financial Report
(3) Dividends payable
Presentation by category
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
CCCG (HK) Holding Limited 18335116
China Communications Construction Company Ltd. 17110841
China Communications Construction Group Co. Ltd. 13264468
Macau Zhenhua Harbour Construction Co. Ltd. 6593 6593
Other entities 56527254
Total 105244272 6593
Other explanations including significant dividends payable that have not been paid for more than one year the reasons
for non-payment shall be disclosed:
As at December 31 2025 the reason for the dividend payable with the aging over 1 year amounting to RMB 6593 (as at
December 31 2024: RMB 6593) was that the shareholders of the Company had not requested for actual payment by the
Group.
(4) Other payables
Other payables presented by nature
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Engineering deposit and quality guarantee deposit 478262406 415415658
Customer collection under asset-backed special program 174681826 121352624
Amounts due to related parties 43587637 61706639
Special payables 14963440 14963440
Others 316152739 276605574
Total 1027648048 890043935
Other important payables with the aging over 1 year or overdue
Applicable √ Not applicable
Other description:
√ Applicable Not applicable
As at December 31 2025 there were no other significant payables with the aging 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: RMB Currency: CNY
Item December 31 2025 December 31 2024
Long-term borrowings due within one year 4136304041 6568218962
Bonds payable due within one year
Long-term payables due within one year 155230522 151299725
Lease liabilities due within one year 17551704 26201960
Total 4309086267 6745720647ANNUAL REPORT 2025
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 applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Pledged borrowings 3053934248 3031253334
Mortgage borrowings
Guaranteed borrowings
Fiduciary borrowings 14132550933 21322670123
Less: Long-term borrowings due within one year
Fiduciary borrowings 3803795992 6411176087
Pledged borrowings 332508049 157042875
Total 13050181140 17785704495
Description of the classification of long-term borrowings:
None
Other description:
√ Applicable Not applicable
As at December 31 2025 the annual interest rates of the above borrowings ranged from 1.0% to 5.05% (December 31
2024: 1.0% to 4.9%).
As at December 31 2025 multiple bank borrowings secured by pledges totaling RMB 3053934248 (December 31 2024:
RMB 3031253334) were pledged by the Group’s long-term receivables from PPP projects other non-current assets
intangible assets contract assets and accounts receivable. Interest is payable quarterly and the principal is repayable
between January 1 2026 and March 25 2050 (December 31 2024: between January 10 2025 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) Description of convertible corporate bonds
Applicable √ Not applicable
Accounting treatment and judgment basis for equity transfer
Applicable √ Not applicableSection VIII Financial Report
(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 applicable
47. Lease liabilities
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Buildings and constructions 27544864 36417411
Other equipment 450161 230336
Less: Lease liabilities due within one year
Buildings and constructions -17402247 -26118764
Other equipment -149457 -83196
Total 10443321 10445787
Other description:
None
48. Long-term payables
Item presentation
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Leaseback financing fund (i) 1149794159 1328207385
“Build-Transfer” and PPP project fund (ii) 207669506 262957217
Project quality guarantee deposit 259019804 277346033
Less: Leaseback financing fund due within one year -155230522 -151299725
Total 1461252947 1717210910
Other description:
√ Applicable Not applicable
(i) As at December 31 2025 long-term payables of RMB 1149794159 (December 31 2024: RMB 1328207385) arose
from sale-and-leaseback transactions of vessels with a book value of RMB 2294086970 (December 31 2024: RMB
2416269819) entered into with finance leasing companies with maturities ranging from January 24 2026 to July 24
2033 (December 31 2024: from January 24 2025 to July 24 2033). The Group makes scheduled payments of the leaseback
financing to the finance leasing companies in accordance with the contractual terms each year. The Group accounts for
the above series of transactions as mortgage borrowings.(ii) The Group has agreed with the construction contractors of the Build-Transfer (BT) and PPP projects that part of the
construction payments will be made within a specified period after the completion and final acceptance of the BT
projects.ANNUAL REPORT 2025
Long-term payables
(1) Presentation of long-term payables by nature
Applicable √ Not applicable
Special payables
(2) Presentation of special payables by nature
Applicable √ Not applicable
49. Long-term payroll payable
Applicable √ Not applicable
50. Estimated liabilities
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024 Causes
External guarantee
Pending litigation
Product quality guarantee deposit
Restructuring obligations
Loss contracts to be executed (i) 49408004
Refund payable
Estimated after-sale service cost (ii) 253341805 208887331
Others
Total 302749809 208887331 /
Other description including relevant important assumptions and estimates of important estimated liabilities:
(i) The Group estimates the expected contract losses based on the estimated sales amount and estimated total cost of the
products recognizes provisions when losses are identified through the estimation process and reduces such provisions
as the related product revenue is actually recognized.(ii) The Group determines the budgeted after-sales service costs based on the actual historical after-sales service costs
incurred for similar products in comparable sales areas recognizes provisions based on the budgeted amount upon
product sales and reduces the provisions as the actual after-sales service costs are incurred.
51. Deferred income
Deferred income
√ Applicable Not applicable
Unit: RMB Currency: CNY
Increase in current Decrease in current
Item December 31 2024 December 31 2025 Causes
period period
Government subsidies 309644884 68319339 -65637343 312326880
Land compensation 31917201 -1000000 30917201
Total 341562085 68319339 -66637343 343244081 /
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.Section VIII Financial Report
52. Other non-current liabilities
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Output tax to be carried forward 270818174 251996220
Total 270818174 251996220
Other description:
On balance sheet date the revenue of some construction contracts and interest income of “Build-Transfer” projects of the
Company had not reached the time point of the VAT liability.
53. Share capital
√ Applicable Not applicable
Unit: RMB Currency: CNY
Increase/decrease (+/-)
December 31 2024 Issue New Capitalized December 31 2025
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: RMB Currency: CNY
Outstanding financial Beginning Increase in current period Decrease in current period Ending
instruments Quantity Book value Quantity Book value Quantity Book value Quantity Book value
S h a n g h a i Z h e n h u a H e a v y
Industries Co. Ltd. 2025 Public
Offering of Perpetual Corporate 5000000 500000000 5000000 500000000
Bonds to Professional Investors
(First Tranche)
S h a n g h a i Z h e n h u a H e a v y
Industries Co. Ltd. 2022 medium- 5000000 500000000 -5000000 -500000000
term notes series I
Total 5000000 500000000 5000000 500000000 -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-ANNUAL REPORT 2025
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.The Group issued the perpetual notes on September 11 2025 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 2.15%. In accordance with the terms of issue
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 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 notes the Company has the right to redeem the 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.
55. Capital reserves
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 Increase in Decrease in December 31
Item
2024 current period current period 2025
Share premium 4537774553 4537774553
Other equity changes in investees accounted for by the equity method -19561335 670318 -18891017
Business combination under common control -16203111 -16203111
Purchase of minority interest -178598151 -178598151
Absorption of minority shareholders’ investments by subsidiaries 245571072 245571072
Share payment expenses 12144098 23639017 35783115
Transfer-in of capital reserves under the original system 128059561 128059561
Total 4709186687 24309335 4733496022
Other description including the increase and decrease in the current period and the reasons for changes:
None
56. Treasury stock
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2024 Increase in current period Decrease in current period December 31 2025
Ordinary shares 29008907 29008907
Total 29008907 29008907
Other description including the increase and decrease in the current period and the reasons for changes:
NoneSection VIII Financial Report
57. Other comprehensive income
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current period
Less: Amount Less: Amount
previously previously
included in included in
Attributable
Beginning the other the other Attributable Ending
Item to the
Balance Pre-tax comprehensive comprehensive Less: Income to the parent minority Balance
amount income and income and tax expenses company after
equity after
currently currently tax
tax
transferred to transferred
the profit or to retained
loss earnings
I. Other comprehensive income that cannot
81749222066495330997431756521025740132
be reclassified into profit and loss
Including: Remeasurement of defined benefit
plan
Other comprehensive income that
cannot be reclassified into profit
and loss in the invested enterprise
under equity method
Fair value change of other equity
81749222066495330997431756521025740132
instrument investments
Fair value change of enterprise
credit risks
II. Other comprehensive income that will be
69577874-39178378-19573319-1960505950004555
reclassified into profit and loss
Including: Other comprehensive income that
will be reclassified into profit and loss in the 7415091 -828505 -828505 6586586
invested enterprise under equity method
Fair value change of other debt
investments
A m o u n t o f f i n a n c i a l a s s e t s
r e c l a s s i f i e d i n t o o t h e r
comprehensive income
Provision for credit impairment of
other debt investments
Cash flow hedging reserve
Translation reserve 62162783 -38349873 -18744814 -19605059 43417969
Total other comprehensive income 77752796 -18513425 3099743 -2008109 -19605059 75744687
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: RMB Currency: CNY
Item December 31 2024 Increase in current period Decrease in current period December 31 2025
Work safety expenses 16731029 77940404 -85418867 9252566
Total 16731029 77940404 -85418867 9252566
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.ANNUAL REPORT 2025
59. Surplus reserves
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2024 Increase in current period Decrease in current period December 31 2025
Statutory surplus reserves 1460805082 21810623 1482615705
D i s c r e t i o n a r y s u r p l u s
292378668292378668
reserves
Reserve fund
Enterprise development fund
Others
Total 1753183750 21810623 1774994373
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 withdrawn by the Company amounted to RMB 21810623 in 2025 (2024: RMB 41878705).
60. Undistributed profits
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Current period Previous period
Undistributed profits at the end of previous period before adjustment 3542325737 3324778074
Total undistributed profits at the beginning of the adjustment period
(increase + decrease -) 3542325737 3324778074
Plus: Net profit attributable to the owners of the parent company in current period 731841793 533524077
Carryforward retained earnings of other comprehensive income 3004966
Less: Withdrawal of statutory surplus reserves 21810623 41878705
Withdrawal of discretionary surplus reserves
Withdrawal of general risk preparation
Common stock dividends converted to share capital 394997121 263417675
Distribution of cash dividends on common stock 13685000 13685000
Distribution of interest on the perpetual medium-term notes 3843674786 3542325737
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.Section VIII Financial Report
61. Operating revenue and operating costs
(1) Operating revenue and operating costs
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Main business 36103346597 31149539706 34277325984 29925258993
Other business 157111729 128620374 179094197 134912308
Total 36260458326 31278160080 34456420181 30060171301
(2) Breakdown of operating income and operating cost
√ Applicable Not applicable
Unit: RMB Currency: CNY
XXX-Division Total
Classification of Contract
Operating revenue Operating costs Operating revenue Operating costs
Type of goods
Port machinery 22776108389 19303237872
Heavy equipment 7382674206 6822593786
Steel structure and related income 3396764185 3178636007
Shipping and lifting services 1877356761 1143708154
Lease income 368120414 242798624
Engineering construction projects 285913696 374896137
Sales of materials and others 173520675 212289500
By region of operation
Chinese Mainland 19830304826 17580671459
Asia (excluding Chinese Mainland) 7035536493 5553303262
North America 3150614443 2863379602
Europe 2846772292 2459593417
Africa 2393015993 1994999174
Chinese Mainland (export sales) 551014260 471458410
South America 432392071 337554197
Oceania 20807948 17200559
Market or customer type
Contract type
By time of goods transfer
Transfer at a certain point 27974515516 24110732177
Transfer within a certain period 8285942810 7167427903
By contract term
By sales channel
Total 36260458326 31278160080
Other description:
Applicable √ Not applicable
(3) Performance obligations
Applicable √ Not applicable
(4) Apportionment to remaining performance obligations
Applicable √ Not applicableANNUAL REPORT 2025
(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:
20252024
Advances from customers for goods 11904232282 8896160050
Settled amount with unfinished construction 665832772 737930271
Total 12570065054 9634090321
The revenue recognized in the current year for performance obligations that have been fulfilled (or partially fulfilled) in
the previous period is as follows:
20252024
Steel structure and related income 1001149409 1391656219
Engineering construction projects 285913696 413546349
Total 1287063105 1805202568
The information related to performance obligations of the Group is as follows:
Sales of port machinery heavy equipment and steel structure products
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.Construction 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.As at December 31 2025 the aggregate amount of revenue expected to be recognized in relation to performance
obligations under contracts that had been entered into but not yet performed or partially performed amounted to RMB
50.669 billion. The Group expects to recognize this amount as revenue over the next 24 months in line with the progress
of project completion.Section VIII Financial Report
62. Taxes and surcharges
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Consumption tax
Sales tax
Urban maintenance and construction tax 145305488 135840528
Education surtax 107978375 97372565
Resource tax
Housing property tax 55697087 55296637
Land use tax 18427255 18047122
Vehicle and vessel use tax
Stamp duty 25641826 26312149
Others 4164326 1563806
Total 357214357 334432807
Other description: None
63. Selling and distribution expenses
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 156947638 145189192
Travel expenses 17445521 17381404
Warehousing service fees 16810098 23300999
Entertainment expenses 15289511 13281060
Advertising and publicity costs 14125952 9680974
Regional operating expenses 4744723 8382699
Office expenses 3583828 2567767
Bidding and tendering expenses 2792424 1419902
Sales and service fees 379586
Others 5170147 11070899
Total 236909842 232654482
Other description: None
64. General and administrative expenses
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 497050367 446623111
Office expenses 58834672 60199065
Amortization of intangible assets 51068168 57695436
Depreciation of fixed assets 44551061 40905205
Travel expenses 36607087 30612547
Management and security fees 23812872 18707219
Informatization expenses 22876408 18915043
Expenses from employment of intermediaries 22189121 43063570
Management and cleaning fees 16121595 15453423ANNUAL REPORT 2025
Item Amount incurred in the current period Amount incurred in the previous period
Consulting fees 15126644 24779731
Entertainment expenses 8926934 10504423
Maintenance cost 8509894 16786128
Insurance expenses 7082302 6798582
Others 25224837 27414189
Total 837981962 818457672
Other description: None
65. Research and development expenditures
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 684102793 679993523
Materials and processing expenses 667863928 656385286
Depreciation expenses 80230701 87025975
Product design expenses 3291356 1673459
Others 79886017 77319101
Total 1515374795 1502397344
Other description: None
66. Financial expenses
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Interest expenses 662407965 849205155
Less: Interest income 353481891 389180961
Less: Capitalized amount of interest 21224338 36303855
Exchange gains 16931773 -124588833
Others 25742930 25814293
Total 330376439 324945799
Other description:
The capitalized amounts of borrowing costs have been included in the construction in progress and intangible assets.
67. Other incomes
√ Applicable Not applicable
Unit: RMB Currency: CNY
Classification by nature Amount incurred in the current period Amount incurred in the previous period
Fiscal appropriation 105686303 103404892
Technological subsidy 40181540 33434470
Fiscal appropriation 10431897 7737582
Land compensation 1000000 1000000
Total 157299740 145576944
Other description: NoneSection VIII Financial Report
68. Investment income
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity investment calculated under the equity method 75525126 38722269
Investment income from disposal of long-term equity investment
Investment income from held-for-trading financial assets during the holding period 22571835 22966818
Dividend income from other equity instrument investment during holding 171626 1602665
Interest income from debt investment during holding
Interest income from other debt investment during holding
Investment income from disposal of held-for-trading financial assets 66536385 84624225
Investment income from disposal of other equity instrument investment
Investment income from disposal of debt investment
Investment income from disposal of other debt investment
Income from debt restructuring
Investment loss resulting from disposal of long-term equity investment -5668458 -11152053
Losses on derecognition of financial assets measured at amortized cost -11574005 -54613813
Others -3005783 -4028680
Total 144556726 78121431
Other description:
The Group derecognized some financial assets measured at amortized cost this year recognized a loss of RMB 11574005
(2024: loss of RMB 54613813) and included it in investment income.
69. Net exposure hedging gain
Applicable √ Not applicable
70. Income from fair value change
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current Amount incurred in the previous
Sources of income from fair value change
period 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 -7820546 13425987
Total -7820546 13425987
Other description: None
71. Credit impairment loss
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current Amount incurred in the previous
Item
period period
Loss on bad debts of notes receivable
Loss on bad debts of accounts receivable 466639800 445560896
Loss on bad debts of other receivables 78888848 -27146080ANNUAL REPORT 2025
Amount incurred in the current Amount incurred in the previous
Item
period period
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 545528648 418414816
Other description: None
72. Assets impairment losses
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current Amount incurred in the previous
Item
period period
I. Impairment loss of contract assets 366358738 111128139
II. Loss on price falling of inventory and impairment loss of contract
2032632389687400
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 386685061 200815539
Other description: None
73. Income from disposal of assets
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Income from disposal of fixed assets 42148850 106961574
Total 42148850 106961574
Other description: None
74. Non-operating income
Non-operating income
√ Applicable Not applicable
Unit: RMB 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 assetsSection VIII Financial Report
Amount incurred in the Amount incurred in the Amount included in non-recurring
Item
current period previous period profit or loss in current period
Accepting donations
Government subsidies
Amercement gains 15071058 26216701 15071058
Revenue from insurance indemnity 4691483 4010243 4691483
Government subsidies irrelevant to daily activities 189199 8714965 189199
Others 5890424 15057036 5890424
Total 25842164 53998945 25842164
Other description:
Applicable √ Not applicable
75. Non-operating expenditure
√ Applicable Not applicable
Unit: RMB 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 1370000 946500 1370000
Overdue fine payment 698581 911324 698581
Others 16161481 22928226 16161481
Total 18230062 24786050 18230062
Other description: None
76. Income tax expenses
(1) Table of income tax expenses
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Current income tax expenses 148344785 134405256
Deferred income tax expenses -35248117 23079227
Total 113096668 157484483
(2) Accounting profit and income tax expenses adjustment process
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period
Total profits 1116024014
The income tax expenses calculated based on statutory/applicable tax rates 167403602
Influences caused by different tax rates adopted by subsidiaries 44401608
Influences caused by adjustment on income tax of previous periods 14069500
Influences on non-taxable income
Influences caused by non-deductible cost expenses and losses 1297913
Influences caused by non-confirmation of deductible losses of deferred income tax assets -59301992ANNUAL REPORT 2025
Item Amount incurred in the current period
Influences caused by non-confirmation of deductible temporary differences or deductible
37329702
losses in current period
Profit or loss attributable to joint ventures and associates -11328769
Tax-free income -25542321
Additional deduction of technological development expenses -55232575
Income tax expenses 113096668
Other description:
Applicable √ Not applicable
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: RMB 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 205359329 218320851
Cash received from government subsidies and rewards 161911335 129539412
Cash received from the revenue from fines 15071058 26216701
Employee loan recovered 3405024 2735462
Others 36229310 142559730
Total 421976056 519372156
Description of other cash received related to operating activities:
None
Other cash paid related to operating activities
√ Applicable Not applicable
Unit: RMB 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 298690027 377102560
Expenditures on selling and distribution expenses general
and administrative expenses and research and development 210072439 209046699
expenses
Financial expenses and handling charges 25732272 26126007
Subsidy for research and development paid to cooperative
27404002740400
units
Others 29824112 64419308
Total 567059250 679434974
Description of other cash paid related to operating activities:
NoneSection VIII Financial Report
(2) Cash related to investment activities
Cash received related to significant investment activities
Applicable √ Not applicable
Cash paid related to significant investment activities
√ Applicable Not applicable
Unit: RMB 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
10497835001061984214
and intangible assets
Total 1049783500 1061984214
Explanation of cash paid related to significant investment activities
None
Other cash received related to investing activities
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Interest income 125703163 232413226
Total 125703163 232413226
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: RMB 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 1593157375 1897394119
Loans received from related parties 84345600 40000000
Leaseback payments received 5005650 5024616
Total 1682508625 1942418735
Description of other cash received related to financing activities:
None
Other cash paid related to financing activities
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Other cash paid related to financing activities
Repayment of collections from asset-backed securities business 1539828173 2035828278
Repayment of principal of perpetual bonds 500000000
Third-party loan repaid 150452721 149318445
Related-party loan repaid 124345600 114035638
Minority shareholder disinvestment 97334154 46710558ANNUAL REPORT 2025
Item Amount incurred in the current period Amount incurred in the previous period
Repurchase of treasury stock 29008907
Purchase of minority shareholders’ equity 1005641953
Others 14596494 33619042
Total 2455566049 3385153914
Description of other cash paid related to financing activities:
None
Changes in various liabilities arising from financing activities
√ Applicable Not applicable
Unit: RMB Currency: CNY
Increase in current period Decrease in current period
December 31 December 31
Item
2024 Non-cash Non-cash Cash changes Cash changes 2025
changes changes
Long-term loans (including long-term
243539234572157249019932388546280183317186485181
loans due within one year)
Long-term payables - leaseback financing
(including long-term payables due within 1328207385 5005650 150452721 32966155 1149794159
one year - leaseback financing)
Lease liabilities (including lease liabilities
3664774759437721459649427995025
due within one year)
Other payables (asset-backed securities
12135262415931573751539828173174681826
business funds)
Other payables (minority shareholders’
4000000084345600124345600
loans)
Short-term borrowings 2297334457 7208144444 5818922484 3686556417
Total 28177465670 11047902088 5943772 16972030934 33767988 22225512608
(4) Description of cash flows presented on a net basis
Applicable √ Not applicable
(5) Significant 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 2025 the Group endorsed bank acceptance bills received from the sale of goods and rendering of services for payment
of purchases of goods and receipts of services in the amount of RMB 7414669766 (2024: RMB 5784477500).
79. Further information on cash flow statement
(1) Further information on cash flow statement
√ Applicable Not applicable
Unit: RMB Currency: CNY
Further information 2025 2024
1. Reconciliation from net profits to cash flows from operating activities:
Net profit 1002927346 779944769
Plus: Provision for impairment of assets 386685061 200815539
Credit impairment loss 545528648 418414816
Depreciation of investment properties and fixed assets 1468062057 1379488320
Amortization of right-of-use assets 26354895 30046209
Amortization of intangible assets and long-term deferred expenses 130351483 99542830
Loss on disposal of fixed assets intangible assets and other long-term assets (gains expressed with “-”) -42148850 -106961574
Share payment expenses 23639017 12144098Section VIII Financial Report
Further information 2025 2024
Loss on retirement of fixed assets (gains expressed with “-”)
Loss on changes in fair value (gains expressed with “-”) 7820546 -13425987
Non-operating income -1914106
Financial expenses (gains expressed with “-”) 318699194 471666124
Investment losses (gains expressed with “-”) -158253890 -136763924
Decrease of deferred income tax assets (increase expressed with “-”) -73099554 18844863
Increase of deferred tax liabilities (decrease expressed with “-”) 37851437 4234364
Decrease of inventory (increase expressed with “-”) 669292462 -361372013
Decrease/(increase) in construction contract amount 720470753 -1593129626
Operating receivables (increase expressed with “-”) -1287294286 681297942
Increase of operating payables (decrease expressed with “-”) 2482551684 3384701782
(Decrease)/increase in special reserves -10133622 8304452
Others
Net cash flows from operating activities 6249304381 5275878878
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 4542201751 5823175948
Less: Beginning balance of cash 5823175948 5032169905
Plus: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net (decrease)/increase in cash and cash equivalents -1280974197 791006043
(2) Net cash paid to acquire subsidiaries in current period
Applicable √ Not applicable
(3) Net cash received from disposal of subsidiaries in current period
Applicable √ Not applicable
(4) Composition of cash and cash equivalents
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
I. Cash 4542201751 5823175948
Including: Cash on hand 244362 266397
Bank deposit readily available for payment 4541957389 5822909551
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 4542201751 5823175948
Including: Restricted cash and cash equivalents of parent company or
subsidiaries within the Group
(5) Cash and cash equivalents presented as such despite restrictions on their use
Applicable √ Not applicableANNUAL REPORT 2025
(6) Monetary fund not classified into cash and cash equivalents
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024 Reason
Judicial frozen funds 17442421 10041923 Capital frozen
Guarantee and L/C deposit 9799801 33571450 Margin
Funds in overseas regulatory accounts 833158 37891 Restricted use
Total 28075380 43651264 /
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 and 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:
20252024
Including: Amount received Comparable maturity range Carrying
Carrying amount Maturity range
by the supplier of accounts payable amount
Accounts payable 301846835 107-181 107-181 325658140
80. Notes to items in statement of changes in 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: RMB
Item Ending foreign currency balance Conversion exchange rate Ending balance converted into RMB
Monetary funds - -
Including: USD 274433325 7.0288 1928936955
EUR 67611531 8.2355 556814764
SGD 14426235 5.4586 78747046
MAD 30986767 0.7709 23887699
ZAR 37839605 0.4224 15983449
KRW 3131372408 0.0049 15343725
AUD 2858328 4.6892 13403272
RUB 149058943 0.0881 13132093
INR 136988148 0.0783 10726172
GBP 643470 9.4346 6070882
BRL 4265199 1.2776 5449218
MYR 2855239 1.7319 4944988Section VIII Financial Report
Item Ending foreign currency balance Conversion exchange rate Ending balance converted into RMB
SAR 2117745 1.8680 3955948
AED 2026534 1.9071 3864803
HKD 566361 0.9032 511537
MOP 491818 0.8763 430980
COP 94799049 0.0018 170638
KES 732992 0.0572 41927
SEK 18702 0.7617 14245
GHS 11780 0.8754 10312
CAD 52 5.1142 266
NZD 5 4.0520 20
LKR - 0.0227 -
JPY - 0.0448 -
Accounts receivable - -
Including: USD 1388250345 7.0288 9757734025
EUR 138305536 8.2355 1139015242
SGD 40346743 5.4586 220236731
MOP 179659248 0.8763 157435399
GBP 11313687 9.4346 106740111
INR 876881903 0.0783 68659853
RUB 717746599 0.0881 63233475
LKR 2641485734 0.0227 59961726
KRW 11729293028 0.0049 57473536
AED 23902269 1.9071 45584017
ZAR 81860527 0.4224 34577887
CAD 4842537 5.1142 24765703
QAR 11629784 1.9282 22424550
HKD 21584436 0.9032 19495063
SAR 6132462 1.8680 11455439
MYR 3324265 1.7319 5757295
AUD 959954 4.6892 4501416
BRL - 1.2776 -
Other receivables - -
Including: USD 8922276 7.0288 62712893
EUR 31446791 8.2355 258980046
HKD 85417924 0.9032 77149469
SGD 887476 5.4586 4844376
ZAR 11210543 0.4224 4735333
LKR 140792363 0.0227 3195987
INR 23214738 0.0783 1817714
KRW 365977693 0.0049 1793291
AUD 367288 4.6892 1722288
BRL 596492 1.2776 762078
OMR 4832 18.2559 88213
RUB - 0.0881 -
Accounts payable - -
Including: USD 258675144 7.0288 1818175852
EUR 128237992 8.2355 1056103983
SGD 16492460 5.4586 90025742
KRW 9303306651 0.0049 45586203
INR 467339985 0.0783 36592721ANNUAL REPORT 2025
Item Ending foreign currency balance Conversion exchange rate Ending balance converted into RMB
GBP 3689905 9.4346 34812778
RUB 300874096 0.0881 26507008
ZAR 44749669 0.4224 18902260
AUD 4022753 4.6892 18863493
LKR 750650170 0.0227 17039759
JPY 275423791 0.0448 12338986
BRL 1366312 1.2832 1753252
HKD 1096315 0.9032 990192
NZD 31309 4.0520 126864
CAD 22295 5.1142 114021
Other payables - -
Including: USD 19291806 7.0288 135598246
SGD 7503879 5.4586 40960674
KRW 3264182305 0.0049 15994493
LKR 306190949 0.0227 6950535
EUR 756789 8.2355 6232536
RUB 16354696 0.0881 1440849
GBP 84147 9.4346 793893
BRL 315416 1.2776 402975
ZAR 801965 0.4224 338750
INR 3560180 0.0783 278762
HKD 15260 0.9032 13783
Long-term payables due within one year
USD 22084925 7.0288 155230522
Long-term payables
USD 141135973 7.0288 992016527
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
20252024
Interest expense of lease liabilities 1047394 1924958
Short-term lease expenses with simplified treatment included in the current profit or loss 213536195 223116372
Total cash outflows related to leases 228132689 286559845
Cash outflow from leaseback 150452721 157310318
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.Variable lease payments not included in the measurement of lease liabilities
Applicable √ Not applicableSection VIII Financial Report
Simplified short-term leases or lease expenses of low-value assets
√ Applicable Not applicable
The simplified treatment of short-term lease and low-value assets lease is detailed in Note V (38).Leaseback transactions and judgment basis
√ Applicable Not applicable
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 scheduled payments of the leaseback financing to the finance leasing companies in
accordance with the contractual terms each year.Total cash outflows related to leases amounted to 228132689 (Unit: RMB 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
(3) Profit or loss of financing lease sales as a manufacturer or distributor
Applicable √ Not applicable
Other description:
Operating lease
The profit or loss related to operating leases is presented as follows:
20252024
Lease income 368120414 384134037
According to the lease agreement signed with the lessee the undiscounted minimum lease receipts are as follows:
20252024
Within 1 year (including 1 year) 519660875 417480850
1 to 2 years (including 2 years) 461027590 291092371
2-3 years (including 3 years) 362703366 233509892
3-4 years (including 4 years) 236474132 137080479
4-5 years (including 5 years) 104978363 110913100
Over 5 years 43384725 127300221
Total 1728229051 1317376913
83. Data resources
Applicable √ Not applicable
84. Others
Applicable √ Not applicableANNUAL REPORT 2025
VIII. R&D expenditure
1. Presented by nature of expense
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Employee compensation 684102793 679993523
Materials expenses 667863928 656385286
Depreciation and amortization 80230701 87025975
Product design expenses 3291356 1673459
Others 79886017 77319101
Total 1515374795 1502397344
Including: Expensed R&D expenditure 1515374795 1502397344
Capitalized R&D expenditure
Other description:
For the year 2025 none of the above R&D expenditures were capitalized.
2. Development expenditures of R&D projects eligible for capitalization
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 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 applicableSection VIII Financial Report
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 applicable
During the year ZPMC Morocco Co. Ltd. CCCC Zhenhua Offshore Hoisting and Pipe-Laying Core Equipment Engineering
Technology (Shanghai) Co. Ltd. and ZPMC Group (Hainan) Co. Ltd. were newly established while Zhenhua Haitong
Intelligent Equipment Co. Ltd. and Shanghai Zhenhua Smart Enterprise Management Co. Ltd. were deregistered.
6. Others
Applicable √ Not applicable
X. Interests in other entities
1. Interests in subsidiaries
(1) Subsidiaries of the Group
√ Applicable Not applicable
Unit: RMB Currency: CNY
Principal place of Registered Business Shareholding ratio (%)
Subsidiary Name Registration place Acquisition mode
business capital nature Direct Indirect
Nantong Zhenhua Heavy
Nantong City Nantong City Machine E s t a b l i s h m e n t b y
Equipment Manufacturing 100.00% 0.00%
Jiangsu Province Jiangsu Province manufacturing investing
Co. Ltd.Shanghai Zhenhua Heavy
Industries Group (Nantong) Machine E s t a b l i s h m e n t b y
Jiangsu Province Jiangsu Province 100.00% 0.00%
Transmission Machinery Co. manufacturing investing
Ltd.Shanghai Zhenhua Heavy Business combination
Chongming Chongming Machine
Industries Port Machinery 100.00% 0.00% u n d e r c o m m o n
Shanghai Shanghai manufacturing
General Equipment Co. Ltd. control
CCCC Liyang Urban
Liyang City Liyang City Jiangsu Engineering E s t a b l i s h m e n t b y
Investment and Construction 48.00% 0.00%
Jiangsu Province Province construction investing
Co. Ltd. (Note 1)
Business combination
Greenland Heavylift Marine
Singapore Hong Kong 50.00% 0.00% not under common
(Hongkong) Limited transport
control
Description of the difference between the shareholding ratio and the proportion of voting right ratio in subsidiaries:
NoneANNUAL REPORT 2025
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 significant structured entities included in the consolidation scope:
None
Basis for determining whether the Company is an agent or a principal:
None
Other description:
Note 1: Pursuant to the acting-in-concert agreement entered into with CCCC Shanghai Dredging Co. Ltd. and CCCC
East China Investment Co. Ltd. the Group obtained an aggregate of 76% of the voting rights at the general meeting of
shareholders and 71% of the voting rights at the board of directors of the company. In accordance with the provisions
of the articles of association of the company the Group obtained control over the company and therefore included it
within the scope of consolidation. Pursuant to the articles of association one of the shareholders of the company Jiangsu
Sukong Urban Investment and Construction Co. Ltd. does not participate in profit distribution and holds a 20% stock
equity.
(2) Significant non-wholly-owned subsidiaries
√ Applicable Not applicable
Unit: RMB 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% 174131441 -10912384 712256166
CCCC Investment & Development Qidong
50.42%26491551447435989
Co. Ltd.CCCC Liyang Urban Investment and
52.00%22868161-39950000358529120
Construction Co. Ltd.CCCC Rudong Construction Development
33.50%-281328802209494234312462
Co. Ltd.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 applicableSection VIII Financial Report
(3) Main financial information of significant non-wholly-owned subsidiaries
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Name of
subsidiary Current Non-current Current Non-current Non-current Current Non-current Total assets Total liabilities Current assets Total assets Total liabilities
assets assets liabilities liabilities assets liabilities liabilities
Greenland Heavylift
(Hong Kong) 400376841 2294113151 2694489992 -272436280 -992016527 -1264452807 206779915 2418262487 2625042402 -339210936 -1174360550 -1513571486
Limited
CCCC Investment
& Development 605356684 817716774 1423073458 -327322257 -207669506 -534991763 447631306 829935643 1277566949 -120976077 -321011959 -441988036
Qidong Co. Ltd.CCCC Liyang Urban
Investment and
7574373553259701751083407530-214662621-2547110-2172097311061100769762349201137335689-225761183-2547110-228308293
Construction Co.Ltd.CCCC Rudong
Construction
2474673849784899421225957326-224749930-297569030-52231896019670236011224142251319116585-263463831-390987314-654451145
Development Co.Ltd.Amount incurred in the current period Amount incurred in the previous period
Name of subsidiary Total Total Operating Cash flows from Cash flows from
Net profit comprehensive Operating revenue Net profit comprehensive
revenue operating activities operating activities
income income
Greenland Heavylift (Hong Kong) Limited 821565161 359777140 329478656 460290999 742478465 212288745 222425649 489796961
CCCC Investment & Development Qidong Co. Ltd. 101268795 52502782 52502782 228752921 4107471 48932050 48932050 474079714
CCCC Liyang Urban Investment and Construction
46718815717040257170402-504225046366414272323542723235149962165
Co. Ltd.CCCC Rudong Construction Development Co. Ltd. 970000 10840046 10840046 74677703 17215638 20624770 20624770 233544119
Other description: None
(4) Significant restrictions on the use of the assets of the Group or the settlement of the liabilities of the Group
Applicable √ Not applicable
(5) Financial support or other supports provided to structured entities included in the scope of consolidated financial statements
Applicable √ Not applicable
Other description:
Applicable √ Not applicableANNUAL REPORT 2025
2. Transactions in which the owner’s equity share of a subsidiary changes and the subsidiary is still under
control
Applicable √ Not applicable
3. Equity in joint ventures and associates
√ Applicable Not applicable
(1) Significant joint ventures or associates
√ Applicable Not applicable
Shareholding ratio
Principal place Registration Accounting
Name of joint venture or associate Business nature (%)
of business place treatment
Direct Indirect
Joint ventures
Jiangsu Longyuan Zhenhua Marine Engineering Nantong Marine engineering
Jiangsu 50.00% - Equity method
Co. Ltd Jiangsu construction
ZPMC Mediterranean Liman Makinalari Ticaret Technical service for port
Istanbul Turkey Istanbul Turkey 50.00% - Equity method
Anonim Sirketi equipment
ZPMC-Red Box Energy Services Limited Hong Kong Hong Kong Marine transport - 51.00% Equity method
ZOSG-OTL Marine Contractor Limited (formerly
Hong Kong Hong Kong Marine transport - 50.00% Equity method
known as: ZPMC-OTL Marine Contractor Limited)
Associates
CCCC Estate Yixing Co. Ltd. Jiangsu Wuxi Jiangsu Real estate development 20.00% - Equity method
Changzhou
ZPMC Changzhou Coatings Co. Ltd. Jiangsu Paint manufacture 20.00% - Equity method
Jiangsu
Pudong New
CCCC Financial Leasing Co. Ltd. Shanghai Finance lease 5.82% - Equity method
Area Shanghai
CCCC Yancheng Construction Development Co. Yancheng Engineering project
Jiangsu 25.00% - Equity method
Ltd. Jiangsu construction
Port channel highway
China Communications Construction USA Inc. USA USA 24.00% - Equity method
and bridge construction
Shanghai Xingyi Construction Technology Co.Shanghai Shanghai Building engineering - 30.00% Equity method
Ltd.CCCC Xiongan Urban Construction Development Engineering project
Hebei Xiongan Hebei 15.00% - Equity method
Co. Ltd. construction
Description of the difference between shareholding ratio and proportion of voting rights in a joint venture or associate:
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 significant joint ventures:
Applicable √ Not applicable
(3) Main financial information of significant associates:
√ Applicable Not applicableSection VIII Financial Report
Unit: RMB Currency: CNY
December 31 2025/Amount incurred in December 31 2024/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 37068077369 35222090045
Non-current assets 30509707592 32482617238
Total assets 67577784961 67704707283
Current liabilities -26631383550 -27518659535
Non-current liabilities -23648188424 -24049807860
Total liabilities -50279571974 -51568467395
Minority equity 4211179385 3740413338
Other equity instrument - Perpetual bond 1000000000 1000000000
Shareholders’ equity attributable the parent company 12087033602 11395826550
Share of net assets held based on shareholding ratio 703866542 661178256
Adjustments
- Goodwill
- Unrealized profits of internal transactions
- Others
Book value of equity investment in associates 703866542 661178256
Fair value of equity investment in associates with public offer
Operating revenue 4266367761 4089094301
Financial expenses-interest income 6331079 18720184
Financial expenses - interest expenses 622633 1308000
Income tax expenses 456583408 454780922
Net profit 1393952161 1346380151
Net profit from discontinuing operation
Net of tax of other comprehensive income 9204360 -4081897
Other comprehensive income
Total comprehensive income 1403156521 1342298254
Total comprehensive income attributable to the parent company 932390474 928198186
Dividends distributed 239662813 191591692
Dividends received from associates this year
Other description: None
(4) Summary of financial information of insignificant joint ventures and associates
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025/Amount December 31 2024/Amount
incurred in the current period incurred in the previous period
Joint ventures:
Total book value of investment 369390003 368281062
Total number of following items by shareholding ratio
-- Net profit 1108941 1406295
-- Other comprehensive income
-- Total comprehensive income 1108941 1406295
Associates:
Total book value of investment 713115410 737693291
Total number of following items by shareholding ratio
-- Net profit 20686753 -16942727
-- Other comprehensive income -1364199 42741
-- Total comprehensive income 19322554 -16899986
Other description: NoneANNUAL REPORT 2025
(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 subsidies
1. Government subsidy not recognized by amount receivable by the end of reporting period
Applicable √ Not applicable
Reasons for failure to receive the estimated amount of government subsidy at the estimated time
Applicable √ Not applicable
2. Liabilities involving government subsidies
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount
Amount
New subsidy included in
Financial December 31 included in December 31 Assets related /
amount in current non-operating Other changes
Statement Item 2024 other income in 2025 income related
period income in
current period
current period
Partly assets related
Deferred income 309644884 68319339 -65637343 312326880 and the remainder
income related
Total 309644884 68319339 -65637343 312326880 /
3. Government subsidy recognized in current profits or losses
√ Applicable Not applicable
Unit: RMB Currency: CNY
type Amount incurred in the current period Amount incurred in the previous period
Assets related 11431897 8737582
Income related 146057042 145554327
Total 157488939 154291909Section VIII Financial Report
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
The book values of various financial instruments on the balance sheet date:
2025
Financial assets
Financial assets measured at fair Financial assets measured at fair
value through the current profit or Financial assets value through other comprehensive
loss measured at income Total
amortized cost
Standard Designated Standard Designated
Monetary funds - - 4570277131 - - 4570277131
Held-for-trading financial assets 403446171 - - - - 403446171
Derivative financial instruments 8438278 - - - - 8438278
Notes receivable - - 149325265 - - 149325265
Receivables financing - - - 485369280 - 485369280
Accounts receivable - - 8485823809 - - 8485823809
Other receivables - - 704236518 - - 704236518
Non-current assets due within
--888580054--888580054
one year
O t h e r e q u i t y i n s t r u m e n t
----211195841211195841
investment
Long-term receivables - - 1262789513 - - 1262789513
Total 411884449 - 16061032290 485369280 211195841 17169481860
Financial liabilities
Financial liabilities measured at fair value through the
current profit or loss Financial liabilities measured at Total
amortized cost
Standard Designated
Short-term borrowings - - 3686556417 3686556417
Notes payable - - 4688600816 4688600816
Accounts payable - - 12732696709 12732696709
Other payables - - 1132892320 1132892320
Non-current liabilities due
--42915345634291534563
within one year
Long-term borrowings - - 13050181140 13050181140
Long-term payables - - 1461252947 1461252947
Total - - 41043714912 41043714912
2024
Financial assets
Financial assets measured at Financial assets measured
fair value through the current Financial assets at fair value through other
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 - - 50000000ANNUAL REPORT 2025
Financial assets measured at Financial assets measured
fair value through the current Financial assets at fair value through other
profit or loss measured at comprehensive income Total
amortized cost
Standard Designated Standard Designated
Receivables financing - - - 650260884 - 650260884
Accounts receivable - - 7365793461 - - 7365793461
Other receivables - - 780170637 - - 780170637
Non-current assets due within one
--1346060900--1346060900
year
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 Total
at amortized cost
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 17785704495
Long-term payables - - 1717210910 1717210910
Total - - 44596212545 44596212545
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 trades with authorized third parties and related parties in good standing. Credit risks are managed in a
centralized manner by customer/counterparty 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
balances of some accounts receivable other receivables and long-term receivables.As the counterparties of monetary funds receivables financing and derivative financial instruments are banks in good
standing and having relatively higher credit ratings 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.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 whetherSection VIII Financial Report
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:
2025
Expected credit loss over the
next 12 months Expected credit Expected credit loss for the entire duration
loss in the entire lifecycle Total
Stage I Stage II Stage III Simple method
Monetary funds 4570277131 - - - 4570277131
Held-for-trading financial assets 403446171 - - 403446171
Derivative financial instruments 8438278 - - - 8438278
Notes receivable - - - 149325265 149325265
Accounts receivable - - - 8485823809 8485823809
Contract assets - - - 3069918477 3069918477ANNUAL REPORT 2025
Expected credit loss over the
next 12 months Expected credit Expected credit loss for the entire duration
loss in the entire lifecycle Total
Stage I Stage II Stage III Simple method
Receivables financing 485369280 - - - 485369280
Other receivables 651560067 1663948 - - 653224015
Non-current assets due within one year 888580054 - - - 888580054
Other non-current assets - - - 4610288207 4610288207
Long-term receivables 1262789513 - - - 1262789513
Total 8270460494 1663948 - 16315355758 24587480200
2024
Expected credit loss over the
next 12 months Expected credit Expected credit loss for the entire duration
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
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 2025 the contractual undiscounted cash flows (including principal and interest) of the Group’s
financial liabilities are presented by contractual maturity as follows:
2025
2025
Within 1 year 1-2 years 2-5 years Over 5 years Total
Short-term borrowings 3693302986 - - - 3693302986
Notes payable 4688600816 - - - 4688600816
Accounts payable 12732696709 - - - 12732696709
Other payables 1132892320 - - - 1132892320
Non-current liabilities due within one year 4201948692 - - - 4201948692
Long-term borrowings 299169078 8956217875 2140753222 2704962122 14101102297
Long-term payables - 681208711 520210696 423083521 1624502928
Total 26748610601 9637426586 2660963918 3128045643 42175046748Section VIII 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
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 2025 the Group’s long-term interest-bearing liabilities mainly were the floating rate contracts
denominated in USD the floating rate contracts denominated in RMB and the fixed rate contracts denominated in RMB.The Group’s exposure to changes in market interest rates primarily relates to its long-term liabilities bearing floating
interest rates. The Group manages its interest rate risk by closely monitoring changes in interest rates and regularly
reviewing borrowings.The finance department at the Group headquarters continuously monitors the Group’s interest rate levels. 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 2024 and 2025 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.
2025
Base point Net profit or loss Net of tax of other comprehensive income Total shareholders’ equity
Increase/(Decrease) Increase/(Decrease) Increase/(Decrease) Increase/(Decrease)
RMB 100 (124363450) - (124363450)
RMB (100) 124363450 - 124363450
2024
Base point Net profit or loss Net of tax of other comprehensive income Total shareholders’ equity
Increase / (Decrease) Increase / (Decrease) Increase / (Decrease) Increase / (Decrease)
RMB 100 (128552784) - (128552784)
RMB (100) 128552784 - 128552784
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 theANNUAL REPORT 2025
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).
2025
Net of tax of other
USD exchange rate Net profit or loss Total shareholders’ equity
comprehensive income
Increase/(Decrease) Increase/(Decrease) Increase/(Decrease)
Increase/(Decrease)
Depreciation of Renminbi against US
1%37459849-37459849
Dollar
Appreciation of Renminbi against US
-1%(37459849)-(37459849)
Dollar
2024
Net of tax of other
USD exchange rate Net profit or loss Total shareholders’ equity
comprehensive income
Increase/(Decrease) Increase/(Decrease) Increase/(Decrease)
Increase/(Decrease)
Depreciation of Renminbi against US
1%36071737-36071737
Dollar
Appreciation of Renminbi against US
-1%(36071737)-(36071737)
Dollar
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 2025 the Group was exposed to the
price risk of equity instrument investment arising from the individual equity instrument investment classified as equity
instrument investment measured at fair value through the current profit or loss. The listed equity instrument investment
held by the Group is listed on the stock exchanges of Shenzhen and Hong Kong and measured at the market quotation
on the balance sheet date.The following table shows the sensitivity of the Group’s net profit or loss to the change of 1% of the fair value of equity
instrument investment (based on the book value on the balance sheet date) under the assumption that all other variables
remain unchanged.
2025
Equity instrument Net of tax of other
Net profit or loss Total shareholders’ equity
investment comprehensive income
Increase/(Decrease) Increase/(Decrease)
Book value Increase/(Decrease)
Equity instrument investment
Equity instrument investment measured
at fair value through the current profit 403446171 3384286 - 3384286
or loss
Investment in equity instruments
measured at fair value through the 211195841 - 1795165 1795165
other comprehensive income
2024
Equity instrument Net of tax of other
Net profit or loss Total shareholders’ equity
investment comprehensive income
Increase/(Decrease) Increase/(Decrease)
Book value Increase/(Decrease)
Equity instrument investment
Equity instrument investment measured
at fair value through the current profit 534200582 4481388 - 4481388
or lossSection VIII Financial Report
Equity instrument Net of tax of other
Net profit or loss Total shareholders’ equity
investment comprehensive income
Increase/(Decrease) Increase/(Decrease)
Book value Increase/(Decrease)
Investment in equity instruments
measured at fair value through the 190530888 - 1619513 1619513
other comprehensive income
Capital management
The main goal of the Group’s capital management is to guarantee the Group’s persistent operation and maintain a sound
capital ratio to support business development and maximize shareholders’ interests.In order to maintain or adjust the capital structure the Group may adjust the amount of dividends paid to shareholders
return capital to shareholders issue new shares or sell assets to reduce debt.The total capital of the Group is the shareholders’ equity as listed in the consolidated balance sheet. The Group is not
subject to external mandatory capital requirements and makes use of the asset-liability ratio to monitor capital. This ratio
is calculated by the net debt divided by total capital. The net debt is the total borrowing (including short-term borrowings
listed in the consolidated balance sheet other non-current liabilities due within one year (excluding lease liabilities) long-
term borrowings other payables and interest-bearing liabilities in long-term payables minus cash and cash equivalents).The total capital is the total shareholders’ equity plus net debt.As at December 31 2025 and December 31 2024 the debt ratio of the Group is listed as follows:
20252024
Debt ratio 49% 55%
2. Hedging
(1) The Company conducts hedging business for risk management
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
(2) The Company conducts eligible hedging business and applies hedging accounting
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
(3) The Company conducts hedging business for risk management expects to achieve risk management objectives but
does not apply hedging accounting
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
3. Transfer of financial asset
(1) Classification of transfer method
√ Applicable Not applicable
Unit: RMB Currency: CNY
Nature of transferred Amount of transferred
Transfer method Derecognition Basis for judgment of derecognition
financial assets financial assets
Amount Already transferred almost all of its risks
Note endorsement Receivables financing 507329316
derecognized and remunerationANNUAL REPORT 2025
Nature of transferred Amount of transferred
Transfer method Derecognition Basis for judgment of derecognition
financial assets financial assets
Amount Already transferred almost all of its risks
Asset securitization (Note) Accounts receivable 1445348948
derecognized and remuneration
Endorsement of debt certificates Amount Already transferred almost all of its risks
Receivables financing 31172179
of digital accounts receivable derecognized and remuneration
Total / 1983850443 / /
(2) Financial assets derecognized due to transfer
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount of financial assets
Item Method of financial asset transfer Profit or loss related to derecognition
derecognized
Receivables financing Note endorsement 507329316 -
Accounts receivable Asset securitization 1445348948 11574005
Endorsement of debt certificates of
Receivables financing 31172179 -
digital accounts receivable
Total / 1983850443 11574005
(3) Transferred financial assets with continuing involvement
Applicable √ Not applicable
Other description:
√ Applicable Not applicable
Note: In 2025 the book balance of the derecognized accounts receivable was RMB 79638774 and the book balance of
contract assets was RMB 499061498 (2024: RMB 1089002945 of book balance of accounts receivable RMB 487995000
of book balance of contract assets) and a loss of RMB 11574005 (2024: RMB 54456916) upon derecognition was
included in investment income.Transferred financial assets that have been derecognized in their entirety but with continuing involvement
As at December 31 2025 the book value of bank acceptance bills endorsed by the Group to suppliers for settlement
of accounts payable but not yet due as at the balance sheet date was RMB 507329316 (December 31 2024: RMB
681439477). As at December 31 2025 these bank acceptance bills had maturities ranging from 1 to 12 months. Pursuant
to the relevant provisions of the Negotiable Instruments Law if the accepting bank refuses payment the holder may
exercise recourse against any one or more or all of the parties liable on the bill including the Group without following
the order of liability of the parties to the bill (the “continuing involvement”). The Group considered that it had transferred
substantially all the risks and rewards of ownership and had therefore derecognized the bills and the related settled
accounts payable in their entirety. The maximum exposure to loss arising from continuing involvement and repurchase
together with the related undiscounted cash flows was equal to their book value. The Group considered the fair value of
its continuing involvement to be insignificant.The Group did not recognize any income or expense arising from continuing involvement in derecognized financial
assets during the current year or on a cumulative basis. The endorsement of bank acceptance bills receivable occurred on
a broadly even basis throughout the year.XIII. Fair value disclosure
1. Ending fair value of assets and liabilities measured at fair value
√ Applicable Not applicableSection VIII Financial Report
Unit: RMB Currency: CNY
Ending fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
Total
measurement measurement measurement
I. Recurring fair value measurements
(I) Held-for-trading financial assets 403446171 8438278 411884449
1. Financial assets measured at fair value through the current
4034461718438278411884449
profit or loss
(1) Debt instrument investment
(2) Equity instrument investments
(3) Derivative financial assets 8438278 8438278
(4) Investment in listed company stocks 403446171 403446171
2. Financial assets designated to be measured at fair value
through the current profit or loss
(1) Debt instrument investment
(2) Equity instrument investments
(II) Other debt investment
(III) Investment in other equity instruments 211195841 211195841
(IV) Investment property
1. Land use right for lease
2. Buildings for lease
3. Land use right held for transfer after appreciation
(V) Biological assets
1. Consumptive biological assets
2. Productive biological assets
(VI) Receivables financing 485369280 485369280
Total assets measured at fair value on a recurring basis 403446171 485369280 219634119 1108449570
(VII) Held-for-trading financial liabilities
1. Financial liabilities measured at fair value through current
profit or loss
Including: Trading bonds issued
Derivative financial liabilities
Others
2. Financial liabilities designated to be measured at fair value
through the current profit or loss
Total liabilities measured at fair value on a recurring basis
II. Non-recurring fair value measurements
(I) Assets held for sale
Total assets measured at fair value on a non-recurring basis
Total liabilities measured at fair value on a non-recurring basis
2. Basis for determining quoted market prices for recurring and non-recurring Level 1 fair value measurements
√ Applicable Not applicable
The fair value of listed equity instrument investments is determined by market quotations.
3. Qualitative and quantitative information about the valuation techniques and significant inputs used for
recurring and non-recurring Level 2 fair value measurements
√ Applicable Not applicable
The fair value of receivables financing is determined by the discounted future cash flow method with the market yield of
other financial instruments with similar contract terms credit risks and remaining maturities as the discount rate.ANNUAL REPORT 2025
4. Qualitative and quantitative information about the valuation techniques and significant inputs used for
recurring and non-recurring Level 3 fair value measurements
√ Applicable Not applicable
The Group’s finance department headed by the finance manager is responsible for establishing policies and procedures
for measuring the fair value of financial instruments. The finance manager reports directly to the CFO. At each balance
sheet date the finance department analyzes changes in the value of financial instruments and determines the principal
inputs applicable to the valuation. Valuations are subject to review and approval by the CFO. For the purpose of the
annual financial statements the valuation process and results are discussed with the Audit Committee once each year.For unlisted equity instrument investments fair value is estimated using the market approach based on unobservable
assumptions regarding market prices or interest rates. The Group needs to identify comparable listed companies based on
industry size leverage and strategy and calculate appropriate market multiples such as price-to-earnings ratio multiples
for each comparable listed company identified. Adjustments will be made based on the specific facts and circumstances
of the enterprise taking into account factors such as liquidity and size differences between comparable listed companies.The Group believes that the fair value and its changes estimated by valuation techniques are reasonable and are also the
most appropriate value at the balance sheet date. For the fair value of unlisted equity instrument investments the Group
estimates the potential impact of using other reasonable and possible assumptions as inputs to the valuation model.The following is a summary of the significant unobservable inputs used in Level 3 fair value measurements:
Fair value as at the end of Weighted average/
Valuation technique Unobservable inputs
the year scope
Level 3 2025: 2025:
D i s c o u n t c a s h f l o w Weighted average cost
Derivative financial instruments 8438278 11%
model of capital
Liquidity discount 26%
Comparable company P/B ratio of comparable
Other equity instrument investment 211195841 1.7-4.0
mode on the market company
2024:2024:
D i s c o u n t c a s h f l o w Weighted average cost
Derivative financial instruments 8438278 11%
model of capital
Liquidity discount 27%
Comparable company P/B ratio of comparable
Other equity instrument investment 190530888 1.4-2.2
mode on the market company
5. Reconciliation between the opening and ending book value of recurring Level 3 fair value measurements
and sensitivity analysis of unobservable inputs
Applicable √ Not applicable
6. For recurring fair value measurements where transfers between levels occurred during the current period
the reasons for such transfers and the policy for determining the timing of transfers
Applicable √ Not applicable
7. Changes in valuation techniques during the current period and the reasons for such changes
Applicable √ Not applicable
8. Fair values of financial assets and financial liabilities not measured at fair value
Applicable √ Not applicableSection VIII Financial Report
9. Others
√ Applicable Not applicable
Reconciliation of recurring Level 3 fair value measurements is as follows:
2025
Total gains or losses for the Changes in unrealized
current period gains or losses
recognized in profit
Opening Transferred Transferred Recognized Closing
Recognized Purchase Issue Sale Settlement or loss during the balance to Level 3 from Level 3 in other balance
in profit or reporting period
comprehensive
loss related to assets still
income held at the year-end
Derivative
financial 8438278 - - - - - - - - 8438278 -
instruments
Other equity
190530888---20664953----211195841-
instruments
Total 198969166 - - - 20664953 - - - - 219634119 -
2024
Total gains or losses for the Changes in
current period unrealized
gains or losses
recognized in
Opening Transferred Transferred Recognized Closing profit or loss
Recognized Purchase Issue Sale Settlementbalance to Level 3 from Level 3 in other balance during the
in profit or
comprehensive reporting period
loss
income related to assets
still held at the
year-end
Derivative
financial 8438278 - - - - - - - - 8438278 -
instruments
Other equity
104859374---474784388358925--7435254-190530888-
instruments
Total 113297652 - - - 4747843 88358925 - -7435254 - 198969166 -
XIV. Related parties and related party transactions
1. Parent company
√ Applicable Not applicable
Unit: RMB Currency: CNY
Parent Registration Registered Shareholding ratio in the
Business nature Voting ratio in the Company (%)
company place capital Company (%)
Port project contracting and
CCCG Beijing City 7274023830 46 46
related business
Description of the parent company of the Company
None
The final controlling party of the Company is the China Communications Construction Group Co. Ltd.Other description:
None
2. Subsidiaries
For details of the subsidiaries of the Company please refer to Note X (1)
Applicable √ Not applicableANNUAL REPORT 2025
3. Joint ventures and associates
For details of the significant joint ventures or associates of the Company please refer to Note X (3)
Applicable √ Not applicable
Other joint ventures or associates that have related party transactions with the Company in the current period or formed
balance in the previous period are as follows.Applicable √ Not applicable
Other description:
Applicable √ Not applicable
4. Other related parties
√ Applicable Not applicable
Name of other related parties Relationship with related party
Friede & Goldman Llc. Controlled by the same parent company
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi Controlled by the same parent company
Beijing Rate Electronic Technology Developing Co. Ltd. Controlled by the same parent company
Guizhou CCCC Xinglu Expressway Development Co. Ltd. Controlled by the same parent company
ZPMC Changzhou Coatings Co. Ltd. Controlled by the same parent company
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd Controlled by the same parent company
Jiangsu CCCC Green Energy Photovoltaic Technology Co. Ltd. Controlled by the same parent company
Jiujiang Education Consulting Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
Lekki Free Trade Zone Lekki Port Project Company Controlled by the same parent company
Road and Bridge Construction Chongqing Fengfu Expressway Development Co. Ltd. Controlled by the same parent company
Road and Bridge Construction Chongqing Fengshi Expressway Development Co. Ltd. Controlled by the same parent company
Xiamen Jiehang Engineering Testing Technology Co. Ltd. Controlled by the same parent company
Shanghai Jiangtian Industrial Co. Ltd. Controlled by the same parent company
Shanghai Communications Construction Contracting Co. Ltd. Controlled by the same parent company
Shanghai Xingyi Construction Technology Co. Ltd. Controlled by the same parent company
Shanghai Zhensha Longfu Machinery Co. Ltd. Controlled by the same parent company
China Transportation HEAD New Technology Co. Ltd. Controlled by the same parent company
Shanghai China Communications Water Transportation Design & Research Co. Ltd. Controlled by the same parent company
Tianjin Harbour Engineering Quality Inspection Center Co. Ltd. Controlled by the same parent company
Wuhan Siyuan Xingye Real Estate Brokerage Co. Ltd. Controlled by the same parent company
Cele International Trading Company Limited Controlled by the same parent company
Zhenhua Engineering Co. Ltd. Controlled by the same parent company
Yueyang Chenglingji New Port Co. Ltd. Controlled by the same parent company
Zhejiang Lvzhou Photovoltaic Technology Co. Ltd. Controlled by the same parent company
ZPMC-Red Box Energy Services Limited Controlled by the same parent company
ZPMC-OTL Marine Contractor Limited Controlled by the same parent company
China Harbour (Nigeria) Limited Controlled by the same parent company
Macau Zhenhua Harbour Construction Co. Ltd. Controlled by the same parent company
CCCC Tunnel Engineering Company Limited Controlled by the same parent company
CCCC First Highway Fifth Engineering Co. Ltd. Controlled by the same parent company
China Harbour Engineering Co. Ltd. Controlled by the same parent company
China Highway Vehicle & Machinery Co. Ltd. Controlled by the same parent company
China Highway Engineering Consulting Corporation Controlled by the same parent company
China Communications Construction Company Ltd. Controlled by the same parent company
China Communications Materials Co. Ltd. Controlled by the same parent company
China Communications Information Technology Group Co. Ltd. Controlled by the same parent companySection VIII Financial Report
Name of other related parties Relationship with related party
China Road & Bridge Corporation Controlled by the same parent company
Chuwa Risheng (Beijing) International Trade Co. Ltd. Controlled by the same parent company
Chuwa Bussan Co. Ltd. Controlled by the same parent company
CCCC (Xiamen) Information Co. Ltd Controlled by the same parent company
CCCC (Tianjin) Eco-environmental Protection Design & Research Institute Co. Ltd. Controlled by the same parent company
CCCC Tianjin Dredging Co. Ltd. Controlled by the same parent company
CCCC Finance Company Ltd. Controlled by the same parent company
CCCC Industrial Investment Holding Company Ltd. Controlled by the same parent company
CCCC Chenzhou Road Construction Machinery Co. Ltd. Controlled by the same parent company
CCCC Urban Operation Management Co. Ltd. Controlled by the same parent company
CCCC Second Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC Second Highway Consultants Co. Ltd. Controlled by the same parent company
CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Third Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Third Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC Fourth Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Fourth Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC First Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC First Harbor Consultants Co. Ltd. Controlled by the same parent company
CCCC Dingxin Equity Investment Management Co. Ltd. Controlled by the same parent company
CCCC - SHEC Fourth Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC-SHEC Fifth Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC-SHEC First Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC-SHEC Railway Engineering Co. Ltd. Controlled by the same parent company
CCCC-SHEC Railway Construction Co. Ltd. Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
No.3 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
No.4 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Photovoltaic Technology Co. Ltd. Controlled by the same parent company
CCCC Guangzhou Dredging Co. Ltd. Controlled by the same parent company
CCCC International (Hong Kong) Holdings Limited Controlled by the same parent company
CCCC Haifeng Wind Power Development Co. Ltd. Controlled by the same parent company
CCCC Ocean Investment Holding Co. Ltd. Controlled by the same parent company
CCCC East China Materials Co. Ltd. Controlled by the same parent company
CCCC Electrical and Mechanical Engineering Co. Ltd. Controlled by the same parent company
CCCG Controlled by the same parent company
CCCG (HK) Holding Limited Controlled by the same parent company
China Communications Construction Company (M) Sdn. Bhd. Controlled by the same parent company
CCCC Construction Group Co. Ltd. Controlled by the same parent company
CCCC Jetport Construction Technology (Shanghai) Co. Ltd. Controlled by the same parent company
Road & Bridge East China Engineering Co. Ltd. Controlled by the same parent company
CCCC Road & Bridge South China Engineering Co. Ltd. Controlled by the same parent company
Road & Bridge International Co. Ltd. Controlled by the same parent company
CCCC Road & Bridge South China Engineering Co. Ltd. Controlled by the same parent company
CCCC Financial Leasing Co. Ltd. Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
No.6 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. (Xiamen) Controlled by the same parent company
No.3 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent companyANNUAL REPORT 2025
Name of other related parties Relationship with related party
Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Shanghai Dredging Co. Ltd. Controlled by the same parent company
No.3 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
No.5 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Capital Holdings Co. Ltd. Controlled by the same parent company
CCCC Shanghai Channel Equipment Industry Co. Ltd. Controlled by the same parent company
CCCC Shanghai Equipment Engineering Co. Ltd. Controlled by the same parent company
CCCC Design Consulting Group Co. Ltd. Controlled by the same parent company
CCCC Worldcom (Chongqing) Heavy Industries Co. Ltd. Controlled by the same parent company
CCCC Dredging (Group) Co. Ltd. Controlled by the same parent company
CCCC National Engineering Research Center of Dredging Technology and Equipment Co. Ltd. Controlled by the same parent company
CCCC Water Transportation Planning and Design Institute Co. Ltd. Controlled by the same parent company
No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. Controlled by the same parent company
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC Fourth Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Tunnel Engineering (Beijing) Real Estate Co. Ltd. Controlled by the same parent company
CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. Controlled by the same parent company
Tianjin Port Engineering Institute Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
CCCC Tianjin Industry and Trade Co. Ltd. Controlled by the same parent company
CCCC Tianjin Dredging Co. Ltd. Controlled by the same parent company
CCCC Wuhan Zhixing International Engineering Consulting Co. Ltd. Controlled by the same parent company
CCCC Property Service Co. Ltd. Controlled by the same parent company
CCCC Xi’an Road Construction Machinery Co. Ltd. Controlled by the same parent company
CCCC Xingyu Technology Co. Ltd Controlled by the same parent company
CCCC Xiongan Urban Construction Development Co. Ltd. Controlled by the same parent company
CCCC Xiongan Financial Leasing Co. Ltd. Controlled by the same parent company
CCCC Yancheng Construction Development Co. Ltd. Controlled by the same parent company
No. 6 Engineering Co. Ltd. of CCCC First Highway Engineering Co. Ltd. Controlled by the same parent company
CCCC First Highway Electrification Engineering Co. Ltd. Controlled by the same parent company
First Highway Engineering Group Co. Ltd. Controlled by the same parent company
Chongqing Yongjiang Expressway Investment and Construction Co. Ltd. of FHEC of CCCC Controlled by the same parent company
Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
No.2 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Controlled by the same parent company
CNPC & CCCC Petroleum Sales Co. Ltd. Controlled by the same parent company
Chongqing Zhongwan Expressway Co. Ltd. Controlled by the same parent company
Other description: None
5. Related party transactions
(1) Purchase and sales of goods and rendering and receipt of labor services
Purchase of goods/receipt of labor services
√ Applicable Not applicable
Unit: RMB Currency: CNY
Content of Amount Approved Exceeding Amount
Related parties related party incurred in the transaction limit transaction limit incurred in
transaction current period (if applicable) (if applicable) the previous period
CCCC Shanghai Equipment Engineering Co. Ltd. Procurement of Goods 422729175 346647152
ZPMC Changzhou Coatings Co. Ltd. Procurement of Goods 77118847 186232564Section VIII Financial Report
Content of Amount Approved Exceeding Amount
Related parties related party incurred in the transaction limit transaction limit incurred in
transaction current period (if applicable) (if applicable) the previous period
CNPC & CCCC Petroleum Sales Co. Ltd. Procurement of Goods 63334894 56320793
CCCC (Xiamen) Information Co. Ltd Procurement of Goods 40037649 24551227
Shanghai Zhensha Longfu Machinery Co. Ltd. Procurement of Goods 35343179 6194242
CCCC National Engineering Research Center of Dredging Procurement
Technology and Equipment Co. Ltd. of Goods 25544239 -
CCCC Shanghai Channel Equipment Industry Co. Ltd. Procurement of Goods 19247788 -
CCCC Dredging (Group) Co. Ltd. Procurement of Goods 10718766 35652451
CCCC Third Harbor Engineering Co. Ltd. Procurement of Goods 4987967 -
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd Procurement of Goods 3266549 -
China Communications Information Technology Group Co. Procurement
Ltd. of Goods 2815382 26936300
CCCC Wuhan Zhixing International Engineering Consulting Procurement
Co. Ltd. of Goods 2482982 9324480
CCCC (Tianjin) Eco-environmental Protection Design & Procurement
Research Institute Co. Ltd. of Goods 1826863 -
CCCC Xingyu Technology Co. Ltd Procurement of Goods 1244799 -
China Communications Materials Co. Ltd. Procurement of Goods 972123 614197
China Highway Vehicle & Machinery Co. Ltd. Procurement of Goods 820732 -
CCCC Tianjin Industry and Trade Co. Ltd. Procurement of Goods 692011 101942200
Chuwa Risheng (Beijing) International Trade Co. Ltd. Procurement of Goods - 48904
CCCC Urban Operation Management Co. Ltd. Procurement of Goods - 1133933
CCCC Second Highway Engineering Co. Ltd. Procurement of Goods - 13346205
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC Fourth Procurement
Harbor Engineering Co. Ltd. of Goods - 6221659
Installation Engineering Co. Ltd. of CCCC First Harbor Procurement
Engineering Co. Ltd. of Goods - 4607547
Shanghai Communications Construction Contracting Co. Procurement
Ltd. of Goods - 444158
CCCC Jetport Construction Technology (Shanghai) Co. Ltd. Procurement of Goods - 395000
CCCC Tianjin Dredging Co. Ltd. Procurement of Goods - 767890
CCCC Shanghai Dredging Co. Ltd. Procurement of Goods - 4036870
CCCC Property Service Co. Ltd. Procurement of Goods - 198383
CCCC First Highway Engineering Co. Ltd. Procurement of Goods - 8443812
CCCC Design Consulting Group Co. Ltd. Procurement of Goods - 518091
CCCC Yancheng Construction Development Co. Ltd. Procurement of Goods - 611451
CCCC Third Harbor Engineering Co. Ltd. Receipt of labor services 187545289 5271531ANNUAL REPORT 2025
Content of Amount Approved Exceeding Amount
Related parties related party incurred in the transaction limit transaction limit incurred in
transaction current period (if applicable) (if applicable) the previous period
CCCC Tianjin Dredging Co. Ltd. Receipt of labor services 99522209 20914058
CCCC Dredging (Group) Co. Ltd. Receipt of labor services 88619832 93888244
China Communications Information Technology Group Co. Receipt of
Ltd. labor services 44285359 46315012
CCCC Third Highway Engineering Co. Ltd. Receipt of labor services 33067274 633389429
CCCC Wuhan Zhixing International Engineering Consulting Receipt of
Co. Ltd. labor services 24777205 1725000
Road & Bridge East China Engineering Co. Ltd. Receipt of labor services 22707987 9651703
CCCC First Highway Engineering Co. Ltd. Receipt of labor services 20294905 164687077
Road & Bridge International Co. Ltd. Receipt of labor services 16054006 44462018
CCCC Urban Operation Management Co. Ltd. Receipt of labor services 14512701 11246696
CCCC National Engineering Research Center of Dredging Receipt of
Technology and Equipment Co. Ltd. labor services 8854717 -
CCCC Construction Group Co. Ltd. Receipt of labor services 5737412 -
CCCC Fourth Harbor Consultants Co. Ltd. Receipt of labor services 5160521 -
Shanghai Communications Construction Contracting Co. Receipt of
Ltd. labor services 3974214 -
CCCC Water Transportation Planning and Design Institute Receipt of
Co. Ltd. labor services 2444553 6812868
CCCC Xingyu Technology Co. Ltd Receipt of labor services 2369417 96600
Shanghai China Communications Water Transportation Receipt of
Design & Research Co. Ltd. labor services 1942264 99000
CCCC (Xiamen) Information Co. Ltd Receipt of labor services 1815100 858209
CCCC Property Service Co. Ltd. Receipt of labor services 1474214 1107521
ZPMC Mediterranean Liman Makinalari Ticaret Anonim Receipt of
Sirketi labor services 1246962 -
No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Receipt of
Co. Ltd. labor services 770642 -
CCCC Third Harbor Consultants Co. Ltd. Receipt of labor services 728038 4510883
CCCC Shanghai Dredging Co. Ltd. Receipt of labor services 697669 4111035
CCCC Photovoltaic Technology Co. Ltd. Receipt of labor services 480991 146526
Tianjin Port Engineering Institute Co. Ltd. of CCCC First Receipt of
Harbor Engineering Co. Ltd. labor services 438113 -
CCCC (Tianjin) Eco-environmental Protection Design & Receipt of
Research Institute Co. Ltd. labor services 332075 -
Guizhou CCCC Xinglu Expressway Development Co. Ltd. Receipt of labor services 197975 -
CCCC Second Harbor Engineering Co. Ltd. Receipt of labor services 154759 39671589
Wuhan Siyuan Xingye Real Estate Brokerage Co. Ltd. Receipt of labor services 94340 -
China Harbour Engineering Co. Ltd. Receipt of labor services 66038 -Section VIII Financial Report
Content of Amount Approved Exceeding Amount
Related parties related party incurred in the transaction limit transaction limit incurred in
transaction current period (if applicable) (if applicable) the previous period
CCCC Design Consulting Group Co. Ltd. Receipt of labor services 35094 250000
CCCC Shanghai Equipment Engineering Co. Ltd. Receipt of labor services - 654818621
No.3 Engineering Co. Ltd. of CCCC Third Harbor Engineering Receipt of
Co. Ltd. labor services - 72975728
Installation Engineering Co. Ltd. of CCCC First Harbor Receipt of
Engineering Co. Ltd. labor services - 18026376
CCCC Road & Bridge South China Engineering Co. Ltd. Receipt of labor services - 13345083
CCCC Yancheng Construction Development Co. Ltd. Receipt of labor services - 13326441
No.2 Engineering Co. Ltd. of CCCC Third Harbor Engineering Receipt of
Co. Ltd. labor services - 6519213
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd Receipt of labor services - 4818682
ZPMC Changzhou Coatings Co. Ltd. Receipt of labor services - 4358819
CCCC Second Highway Engineering Co. Ltd. Receipt of labor services - 2653341
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC Fourth Receipt of
Harbor Engineering Co. Ltd. labor services - 1071000
CNPC & CCCC Petroleum Sales Co. Ltd. Receipt of labor services - 852870
Tianjin Harbour Engineering Quality Inspection Center Co. Receipt of
Ltd. labor services - 480679
Xiamen Jiehang Engineering Testing Technology Co. Ltd. Receipt of labor services - 440000
CCCC Worldcom (Chongqing) Heavy Industries Co. Ltd. Receipt of labor services - 410949
Chuwa Risheng (Beijing) International Trade Co. Ltd. Receipt of labor services - 9600
Sales of goods/rendering of labor services
√ Applicable Not applicable
Unit: RMB Currency: CNY
Content of related party Amount incurred in the Amount incurred in the
Related parties
transaction current period previous period
CCCC National Engineering Research Center of Dredging Technology
Sales of Goods 1664018764 296273935
and Equipment Co. Ltd.CCCC Financial Leasing Co. Ltd. Sales of Goods 231970938 200708000
CCCC Haifeng Wind Power Development Co. Ltd. Sales of Goods 228672566 -
CCCC Electrical and Mechanical Engineering Co. Ltd. Sales of Goods 113491947 396222550
CCCC Third Harbor Engineering Co. Ltd. Sales of Goods 109702142 87262341
CCCC First Harbor Engineering Co. Ltd. Sales of Goods 85609701 17308083
CCCC Second Highway Engineering Co. Ltd. Sales of Goods 63630673 87417725
Zhenhua Engineering Co. Ltd. Sales of Goods 63238232 -
CCCC Fourth Harbor Engineering Co. Ltd. Sales of Goods 55964602 -
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC Fourth Harbor
Sales of Goods 33828357 -
Engineering Co. Ltd.Road & Bridge International Co. Ltd. Sales of Goods 29983631 618816864
CCCC Tianhe Mechanical Equipment Manufacturing Co. Ltd. Sales of Goods 29575231 61597879
CCCC Tianjin Dredging Co. Ltd. Sales of Goods 24278245 -
China Harbour Engineering Co. Ltd. Sales of Goods 21720388 893169261ANNUAL REPORT 2025
Content of related party Amount incurred in the Amount incurred in the
Related parties
transaction current period previous period
CCCC Third Highway Engineering Co. Ltd. Sales of Goods 16384376 15875271
CCCC Road & Bridge South China Engineering Co. Ltd. Sales of Goods 15411948 -
CCCC Photovoltaic Technology Co. Ltd. Sales of Goods 7800702 305825
CCCC Worldcom (Chongqing) Heavy Industries Co. Ltd. Sales of Goods 3936655 1868009
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd Sales of Goods 3130639 282027258
CCCC Shanghai Equipment Engineering Co. Ltd. Sales of Goods 3072567 15362832
Chuwa Bussan Co. Ltd. Sales of Goods 1719102 -
CCCC Water Transportation Planning and Design Institute Co. Ltd. Sales of Goods 1599057 -
No.5 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Sales of Goods 1451327 -
Road and Bridge Construction Chongqing Fengfu Expressway
Sales of Goods 1447417 1949610
Development Co. Ltd.CCCC International (Hong Kong) Holdings Limited Sales of Goods 1146433 -
Road and Bridge Construction Chongqing Fengshi Expressway
Sales of Goods 1022015 1214260
Development Co. Ltd.Chongqing Zhongwan Expressway Co. Ltd. Sales of Goods 813205 1669662
Friede & Goldman Llc. Sales of Goods 456478 11542840
CCCC Guangzhou Dredging Co. Ltd. Sales of Goods 424528 -
Yueyang Chenglingji New Port Co. Ltd. Sales of Goods 355965 868903
CCCG Sales of Goods 94340 -
CCCC Chenzhou Road Construction Machinery Co. Ltd. Sales of Goods 83028 -
CCCC Shanghai Channel Equipment Industry Co. Ltd. Sales of Goods 16549 -
Chongqing Yongjiang Expressway Investment and Construction Co.Sales of Goods 8891 8095
Ltd. of FHEC of CCCC
No.2 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Sales of Goods 752 830189
CCCC Second Harbor Engineering Co. Ltd. Sales of Goods - 417029958
China Road & Bridge Corporation Sales of Goods - 42195263
No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. Sales of Goods - 7765487
ZPMC Changzhou Coatings Co. Ltd. Sales of Goods - 6566672
CCCC First Highway Electrification Engineering Co. Ltd. Sales of Goods - 87270
CCCC Financial Leasing Co. Ltd. Rendering of service 14164609 796519
China Communications Construction Company (M) Sdn. Bhd. Rendering of service 8531551 -
ZPMC Changzhou Coatings Co. Ltd. Rendering of service 7907098 2147
CCCG Rendering of service 4339622 1603774
CCCC Photovoltaic Technology Co. Ltd. Rendering of service 3625346 2550323
China Communications Construction Company Ltd. Rendering of service 2204009 1396226
China Communications Information Technology Group Co. Ltd. Rendering of service 1548451 604127
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd Rendering of service 1409991 4511437
CCCC National Engineering Research Center of Dredging Technology
Rendering of service 896226 -
and Equipment Co. Ltd.China Transportation HEAD New Technology Co. Ltd. Rendering of service 663625 -
CCCC Second Harbor Engineering Co. Ltd. Rendering of service 264151 -
CCCC Shanghai Equipment Engineering Co. Ltd. Rendering of service 109679 640129
CCCC Tianjin Dredging Co. Ltd. Rendering of service 94340 -
CCCC Xi’an Road Construction Machinery Co. Ltd. Rendering of service 26604 -
CCCC Shanghai Dredging Co. Ltd. Rendering of service 12053 -
Jiangsu CCCC Green Energy Photovoltaic Technology Co. Ltd. Rendering of service - 12005642
CCCC Third Harbor Engineering Co. Ltd. Rendering of service - 11929732
Zhejiang Lvzhou Photovoltaic Technology Co. Ltd. Rendering of service - 9128920
Yueyang Chenglingji New Port Co. Ltd. Rendering of service - 73451Section VIII Financial Report
Description of related party transactions of purchase and sales of goods rendering and receipt of labor services
Applicable √ Not applicable
(2) Trusteeship/contracting and entrustment/outsourcing
Trusteeship/contracting of the Company:
Applicable √ Not applicable
Description of the trusteeship/contracting with related parties
Applicable √ Not applicable
Entrustment/outsourcing of the Company
Applicable √ Not applicable
Management/outsourcing with related parties
Applicable √ Not applicable
(3) Leases with related parties
The Company as the lessor:
Applicable √ Not applicable
The Company as the lessee:
Applicable √ Not applicable
Description of leases with related parties
Applicable √ Not applicable
(4) Guarantees with related parties
The Company as the guarantor
Applicable √ Not applicable
The Company as the guaranteed party
Applicable √ Not applicable
Description of the guarantees with related parties
Applicable √ Not applicable
(5) Lendings with related parties
Applicable √ Not applicable
(6) Assets transfer and debt restructuring of related parties
Applicable √ Not applicable
(7) Remuneration of key management personnel
√ Applicable Not applicable
Unit: RMB 10000 Currency: CNY
Item Amount incurred in the current period Amount incurred in the previous period
Remuneration of key management personnel 1474 1468
The Group had 19 key management personnel in 2025 (2024: 24). The remuneration of newly appointed and departing
personnel arising from changes in office during the year is presented based on their respective terms of office while the
remuneration of all other personnel is presented for the current period.
(8) Other related party transactions
√ Applicable Not applicableANNUAL REPORT 2025
Distribution of dividends to related parties
20252024
CCCG 83532098 75938271
CCCC International (Hong Kong) Holdings Limited 50421571 45837792
CCCC Dingxin Equity Investment Management Co. Ltd. 1470600 -
Total 135424269 121776063
(Withdrawals of deposits from)/deposits with related parties
20252024
CCCC Finance Company Ltd. (590036217) 118126908
Borrowings from related parties
20252024
CCCC Finance Company Ltd. (Note) 514000000 36840000
Total 514000000 36840000
Note: During the current year borrowings amounted to RMB 514000000 (2024: RMB 36840000) representing loans granted by CCCC Finance Co. Ltd. to
the Company under the entrustment of China Communications Construction Group Co. Ltd. pursuant to an Entrusted Loan Agreement entered into among
the three parties.Interest collected from related parties
20252024
CCCC Finance Company Ltd. 5279882 1721539
Total 5279882 1721539
Interest paid to related parties
20252024
CCCC Finance Company Ltd. 7357128 13389638
CCCC Xiongan Financial Leasing Co. Ltd. - 1656944
Total 7357128 15046582
6. Outstanding balances with related parties including receivables and payables
(1) Receivables
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
CCCC National Engineering Research Center of
Accounts receivable 432582000 179173555
Dredging Technology and Equipment Co. Ltd.Accounts receivable CCCC Haifeng Wind Power Development Co. Ltd. 228128812 22503000
Accounts receivable CCCC Third Harbor Engineering Co. Ltd. 205329401 159610898
Accounts receivable CCCC Electrical and Mechanical Engineering Co. Ltd. 129234686 111556570
Accounts receivable Road & Bridge International Co. Ltd. 117284139 92164048
Accounts receivable China Harbour Engineering Co. Ltd. 108518522 218780152
Accounts receivable CCCC First Harbor Engineering Co. Ltd. 102325125 87629848
Jiangsu Longyuan Zhenhua Marine Engineering Co.Accounts receivable 84024577 195687694
Ltd
Accounts receivable CCCC Second Highway Engineering Co. Ltd. 68490994 54516895
CCCC Road & Bridge South China Engineering Co.Accounts receivable 62497160 -
Ltd.Accounts receivable China Harbour (Nigeria) Limited 54915805 -Section VIII Financial Report
December 31 2025 December 31 2024
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC
Accounts receivable 53092000 9998000
Fourth Harbor Engineering Co. Ltd.Accounts receivable CCCC Yancheng Construction Development Co. Ltd. 50199243 -
Accounts receivable CCCC Fourth Harbor Engineering Co. Ltd. 45241566 9630947
Accounts receivable China Road & Bridge Corporation 32049877 31187447
Accounts receivable China Communications Construction Company Ltd. 23579922 21467922
CCCC Tianhe Mechanical Equipment Manufacturing
Accounts receivable 19240873 20694119
Co. Ltd.Accounts receivable CCCC First Highway Engineering Co. Ltd. 18952395 18952395
Accounts receivable Friede & Goldman Llc. 16378756 16727069
No.1 Engineering Co. Ltd. of CCCC First Harbor
Accounts receivable 15400000 18530000
Engineering Co. Ltd.Accounts receivable CCCC Second Harbor Engineering Co. Ltd. 14611315 50548475
Accounts receivable CCCC - SHEC Fourth Highway Engineering Co. Ltd. 13833457 13833457
Accounts receivable Zhenhua Engineering Co. Ltd. 13789809 -
ZPMC Mediterranean Liman Makinalari Ticaret
Accounts receivable 12803717 13091953
Anonim Sirketi
Accounts receivable CCCC Tianjin Dredging Co. Ltd. 11412066 11412066
Accounts receivable ZPMC-OTL Marine Contractor Limited 9252446 18068949
Accounts receivable CCCC Third Highway Engineering Co. Ltd. 8997710 12368335
Accounts receivable CCCG 7300000 2700000
Accounts receivable CCCC Financial Leasing Co. Ltd. 7287178 75945067
Accounts receivable CCCC Photovoltaic Technology Co. Ltd. 7251604 16017
Accounts receivable CCCC Dredging (Group) Co. Ltd. 4568720 -
No.6 Engineering Co. Ltd. of CCCC Third Harbor
Accounts receivable 3900000 -
Engineering Co. Ltd. (Xiamen)
Accounts receivable CCCC First Harbor Consultants Co. Ltd. 3723715 3723715
Accounts receivable CCCC Fourth Harbor Consultants Co. Ltd. 3096178 3769681
Accounts receivable CCCC Third Harbor Consultants Co. Ltd. 2324581 2367146
Accounts receivable Zhejiang Lvzhou Photovoltaic Technology Co. Ltd. 2142871 6516640
No. 6 Engineering Co. Ltd. of CCCC First Highway
Accounts receivable 2000000 2000000
Engineering Co. Ltd.China Communications Information Technology
Accounts receivable 1874099 640375
Group Co. Ltd.Accounts receivable Chuwa Bussan Co. Ltd. 1719102 -
No.5 Engineering Co. Ltd. of CCCC First Harbor
Accounts receivable 1640000 -
Engineering Co. Ltd.Accounts receivable CCCC-SHEC First Highway Engineering Co. Ltd. 1228915 10147312
Road and Bridge Construction Chongqing Fengfu
Accounts receivable 1092082 -
Expressway Development Co. Ltd.Jiangsu CCCC Green Energy Photovoltaic Technology
Accounts receivable 837519 5931084
Co. Ltd.Accounts receivable Chongqing Zhongwan Expressway Co. Ltd. 813205 796381
Beijing Rate Electronic Technology Developing Co.Accounts receivable 741517 741517
Ltd.Accounts receivable CCCC Tianjin Dredging Co. Ltd. 731139 1932556
Road and Bridge Construction Chongqing Fengshi
Accounts receivable 719729 -
Expressway Development Co. Ltd.Accounts receivable China Transportation HEAD New Technology Co. Ltd. 528741 -
No.2 Engineering Co. Ltd. of CCCC Second Harbor
Accounts receivable 417150 417150
Engineering Co. Ltd.Accounts receivable ZPMC Changzhou Coatings Co. Ltd. 235603 131603ANNUAL REPORT 2025
December 31 2025 December 31 2024
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
No.4 Engineering Co. Ltd. of CCCC Second Harbor
Accounts receivable 223053 3572680
Engineering Co. Ltd.Installation Engineering Co. Ltd. of CCCC First Harbor
Accounts receivable 213349 213349
Engineering Co. Ltd.CCCC First Highway Electrification Engineering Co.Accounts receivable 125022 125022
Ltd.CCCC Chenzhou Road Construction Machinery Co.Accounts receivable 93822 -
Ltd.Accounts receivable Yueyang Chenglingji New Port Co. Ltd. 84575 -
Accounts receivable CCCC Construction Group Co. Ltd. 82015 82015
Accounts receivable CCCC-SHEC Railway Engineering Co. Ltd. 25688 25688
Accounts receivable CCCC-SHEC Railway Construction Co. Ltd. 23980 23980
Chongqing Yongjiang Expressway Investment and
Accounts receivable 8094 8094
Construction Co. Ltd. of FHEC of CCCC
Accounts receivable CCCC Shanghai Equipment Engineering Co. Ltd. 548 548
Accounts receivable CCCC International (Hong Kong) Holdings Limited 40 -
CCCC Water Transportation Planning and Design
Accounts receivable - 1000000
Institute Co. Ltd.CCCC Worldcom (Chongqing) Heavy Industries Co.Accounts receivable - 480090
Ltd.Accounts receivable First Highway Engineering Group Co. Ltd. - 118779
Receivables financing CCCC Third Harbor Engineering Co. Ltd. 167790534 21663423
Jiangsu Longyuan Zhenhua Marine Engineering Co.Receivables financing 13746695 32328171
Ltd
CCCC Tianhe Mechanical Equipment Manufacturing
Receivables financing 11734901 19156840
Co. Ltd.Receivables financing CCCC Second Harbor Engineering Co. Ltd. 11307078 5000000
Receivables financing CCCC-SHEC First Highway Engineering Co. Ltd. 10181789 -
Receivables financing CCCC Second Highway Engineering Co. Ltd. 7011724 -
Receivables financing CCCC Third Highway Engineering Co. Ltd. 6731626 14534000
Receivables financing CCCC First Harbor Engineering Co. Ltd. 2000000 -
CCCC Road & Bridge South China Engineering Co.Receivables financing 2000000 10098395
Ltd.No.3 Engineering Co. Ltd. of CCCC First Harbor
Receivables financing 500000 -
Engineering Co. Ltd.Receivables financing CCCC Electrical and Mechanical Engineering Co. Ltd. - 99140896
Receivables financing Road & Bridge International Co. Ltd. - 84784166
Receivables financing CCCC Haifeng Wind Power Development Co. Ltd. - 80000000
Receivables financing CCCC East China Materials Co. Ltd. - 1500000
Receivables financing CCCC Third Harbor Consultants Co. Ltd. - 768332
CCCC Worldcom (Chongqing) Heavy Industries Co.Receivables financing - 363935
Ltd.Other receivables ZPMC-Red Box Energy Services Limited 164124678 164124678 164124678 164124678
Other receivables CCCC Third Harbor Engineering Co. Ltd. 64418118 53625531
Other receivables CCCC Second Harbor Engineering Co. Ltd. 34051971 35649319
Other receivables China Road & Bridge Corporation 29228920 29228919
Jiangsu Longyuan Zhenhua Marine Engineering Co.Other receivables 20616526 6673978
Ltd
Other receivables Road & Bridge International Co. Ltd. 14861556 13030041
Other receivables CCCC First Harbor Engineering Co. Ltd. 9833338 9890860
Other receivables CCCC-SHEC Fifth Highway Engineering Co. Ltd. 7677577 -
Other receivables CCCC Third Highway Engineering Co. Ltd. 5234699 6412639Section VIII Financial Report
December 31 2025 December 31 2024
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Other receivables China Communications Construction Company Ltd. 4746754 4746754
Other receivables CCCC Fourth Harbor Engineering Co. Ltd. 3538071 -
CCCC Road & Bridge South China Engineering Co.Other receivables 2660154 -
Ltd.Other receivables CCCC Second Highway Engineering Co. Ltd. 2645414 4943320
No.4 Engineering Co. Ltd. of CCCC Second Harbor
Other receivables 2116091 2116091
Engineering Co. Ltd.Other receivables CCCG 1356800 1356800
Other receivables CCCC Yancheng Construction Development Co. Ltd. 988549 -
Other receivables CCCC Financial Leasing Co. Ltd. 857655 -
Other receivables CCCC First Harbor Consultants Co. Ltd. 543764 543764
CCCC Xiongan Urban Construction Development Co.Other receivables 396023 769749
Ltd.Other receivables CCCC Third Harbor Consultants Co. Ltd. 200000 -
No.3 Engineering Co. Ltd. of CCCC Second Harbor
Other receivables 200000 -
Engineering Co. Ltd.Other receivables China Harbour Engineering Co. Ltd. 195858 1051012
Other receivables CCCC Design Consulting Group Co. Ltd. 100000 -
Other receivables CCCC Tianjin Dredging Co. Ltd. 91893 -
Other receivables CCCC Shanghai Dredging Co. Ltd. 79405 72133
Other receivables Shanghai Jiangtian Industrial Co. Ltd. 77552 77552
Other receivables ZPMC-OTL Marine Contractor Limited 44389 45510
Other receivables CCCC Urban Operation Management Co. Ltd. 43552 37361
Other receivables China Highway Vehicle & Machinery Co. Ltd. 19800 -
CCCC Worldcom (Chongqing) Heavy Industries Co.Other receivables 15828 20000
Ltd.Other receivables ZPMC Changzhou Coatings Co. Ltd. 5000 -
Jiujiang Education Consulting Co. Ltd. of CCCC
Other receivables 1800 1800
Second Harbor Engineering Co. Ltd.Other receivables Shanghai Xingyi Construction Technology Co. Ltd. 189 -
Other receivables CCCC Xiongan Financial Leasing Co. Ltd. - 6000000
No.2 Engineering Co. Ltd. of CCCC Second Harbor
Other receivables - 2071763
Engineering Co. Ltd.Installation Engineering Co. Ltd. of CCCC First Harbor
Other receivables - 1600000
Engineering Co. Ltd.Other receivables CCCC-SHEC First Highway Engineering Co. Ltd. - 565553
Other receivables CCCC Fourth Harbor Consultants Co. Ltd. - 520895
Advances to suppliers CCCC Third Harbor Engineering Co. Ltd. 92642746 112306815
Advances to suppliers CCCG 4027918 1641000
Advances to suppliers CCCC Third Highway Engineering Co. Ltd. 2000800 2000800
Advances to suppliers CCCC Second Highway Consultants Co. Ltd. 850000 850000
China Communications Information Technology
Advances to suppliers 484200 16099913
Group Co. Ltd.Advances to suppliers CCCC Ocean Investment Holding Co. Ltd. 15200 15200
Advances to suppliers CCCC Industrial Investment Holding Company Ltd. 4000 4000
CCCC Tunnel Engineering (Beijing) Real Estate Co.Advances to suppliers 3500 -
Ltd.No.3 Engineering Co. Ltd. of CCCC Second Harbor
Advances to suppliers 1600 -
Engineering Co. Ltd.Advances to suppliers CCCC Shanghai Equipment Engineering Co. Ltd. 1359 1359
Advances to suppliers CCCC Second Highway Engineering Co. Ltd. 500 500ANNUAL REPORT 2025
December 31 2025 December 31 2024
Item Related parties Provision for Provision for
Book balance Book balance
bad debts bad debts
Advances to suppliers Yueyang Chenglingji New Port Co. Ltd. 400 -
Advances to suppliers CCCC Guangzhou Dredging Co. Ltd. 100 -
Advances to suppliers Road & Bridge International Co. Ltd. - 941495
CCCC Worldcom (Chongqing) Heavy Industries Co.Advances to suppliers - 380735
Ltd.CCCC Road & Bridge South China Engineering Co.Advances to suppliers - 351487
Ltd.Advances to suppliers CCCC Xingyu Technology Co. Ltd - 102959
Advances to suppliers CCCC Dredging (Group) Co. Ltd. - 9100
Jiangsu Longyuan Zhenhua Marine Engineering Co.Contract assets 367237518 24058066
Ltd
CCCC National Engineering Research Center of
Contract assets 309938522 96609056
Dredging Technology and Equipment Co. Ltd.Contract assets Road & Bridge International Co. Ltd. 72999447 79180837
Contract assets CCCC Second Harbor Engineering Co. Ltd. 66087828 161080684
Contract assets CCCC Third Harbor Engineering Co. Ltd. 58236097 45280803
Contract assets CCCC Tianjin Dredging Co. Ltd. 34028319 -
Contract assets CCCC Yancheng Construction Development Co. Ltd. 19869315 315887
Contract assets CCCC First Harbor Engineering Co. Ltd. 13206716 56573210
Contract assets China Road & Bridge Corporation 11541856 3852069
CCCC Road & Bridge South China Engineering Co.Contract assets 4354331 -
Ltd.Contract assets CCCC Second Highway Engineering Co. Ltd. 3073682 2924165
Contract assets CCCC Electrical and Mechanical Engineering Co. Ltd. 2920354 9398230
Contract assets China Harbour Engineering Co. Ltd. - 179817826
Contract assets CCCC Third Highway Engineering Co. Ltd. - 9920642
No.4 Engineering Co. Ltd. of CCCC Second Harbor
Contract assets - 4654092
Engineering Co. Ltd.Contract assets CCCC-SHEC First Highway Engineering Co. Ltd. - 2428909
O ther non- current
CCCC First Harbor Engineering Co. Ltd. 58310287 -
assets
O ther non- current Jiangsu Longyuan Zhenhua Marine Engineering Co.
214221214086224
assets Ltd
O ther non- current
CCCC Third Harbor Engineering Co. Ltd. 17846296 19676660
assets
O ther non- current
CCCC Second Harbor Engineering Co. Ltd. 11095573 -
assets
O ther non- current
Zhenhua Engineering Co. Ltd. 6347830 -
assets
O ther non- current
China Road & Bridge Corporation 4539453 -
assets
O ther non- current
Road & Bridge International Co. Ltd. 4354331 4306525
assets
O ther non- current
CCCC-SHEC First Highway Engineering Co. Ltd. 2428909 -
assetsSection VIII Financial Report
(2) Payables
√ Applicable Not applicable
Unit: RMB Currency: CNY
Ending book Beginning book
Item Related parties
balance balance
Accounts payable CCCC Third Harbor Engineering Co. Ltd. 245874364 275932763
Accounts payable CCCC Third Highway Engineering Co. Ltd. 210810639 366104528
Accounts payable CCCC Construction Group Co. Ltd. 206086364 145478903
Accounts payable CCCC Tianjin Dredging Co. Ltd. 199684485 51600984
Accounts payable CCCC First Highway Engineering Co. Ltd. 139230408 65449332
Accounts payable CCCC Shanghai Equipment Engineering Co. Ltd. 102094550 30958856
Accounts payable CCCC Dredging (Group) Co. Ltd. 45720762 -
Accounts payable CCCC Shanghai Channel Equipment Industry Co. Ltd. 39799104 1111000
Accounts payable ZPMC Changzhou Coatings Co. Ltd. 37966419 50382026
Accounts payable China Communications Information Technology Group Co. Ltd. 28466482 2203255
Accounts payable Road & Bridge East China Engineering Co. Ltd. 28040480 14249963
Accounts payable CCCC Second Harbor Engineering Co. Ltd. 23563375 153026470
CCCC National Engineering Research Center of Dredging Technology and
Accounts payable 17563160 -
Equipment Co. Ltd.Accounts payable Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 13396129 33083852
Accounts payable CNPC & CCCC Petroleum Sales Co. Ltd. 12192479 10826167
Accounts payable Shanghai Zhensha Longfu Machinery Co. Ltd. 12079905 -
Accounts payable Road & Bridge International Co. Ltd. 10839686 -
Accounts payable CCCC East China Materials Co. Ltd. 10411231 -
Accounts payable CCCC (Xiamen) Information Co. Ltd 8585002 1131267
Accounts payable No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. 8581250 4302240
Accounts payable CCCC Water Transportation Planning and Design Institute Co. Ltd. 7453702 8581250
Accounts payable CCCC Wuhan Zhixing International Engineering Consulting Co. Ltd. 7319744 -
Accounts payable Shanghai Communications Construction Contracting Co. Ltd. 4690248 8113473
Accounts payable CCCC Shanghai Dredging Co. Ltd. 3549662 4601001
Accounts payable No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 3291462 15714811
Accounts payable CCCC Second Highway Engineering Co. Ltd. 2774835 80500
Accounts payable CCCC First Harbor Engineering Co. Ltd. 2298606 1210111
Accounts payable CCCC (Tianjin) Eco-environmental Protection Design & Research Institute Co. Ltd. 2016355 -
Accounts payable ZPMC Mediterranean Liman Makinalari Ticaret Anonim Sirketi 1821488 131763
Accounts payable CCCC Third Harbor Consultants Co. Ltd. 1658344 1731981
Accounts payable CCCC Tianjin Industry and Trade Co. Ltd. 1453945 -
Accounts payable CCCC Electrical and Mechanical Engineering Co. Ltd. 1061720 -
Shanghai China Communications Water Transportation Design & Research Co.Accounts payable 978800 -
Ltd.Accounts payable CCCC Second Highway Consultants Co. Ltd. 848827 9637173
Accounts payable Shanghai Jiangtian Industrial Co. Ltd. 846373 809544
Accounts payable CCCC Urban Operation Management Co. Ltd. 748432 552439
Accounts payable CCCC Property Service Co. Ltd. 398990 -
Accounts payable China Highway Vehicle & Machinery Co. Ltd. 345511 -
Accounts payable CCCC First Harbor Consultants Co. Ltd. 302041 302041
Accounts payable Guizhou CCCC Xinglu Expressway Development Co. Ltd. 199301 -
Accounts payable CCCC Xingyu Technology Co. Ltd 142340 78491
Accounts payable Chuwa Risheng (Beijing) International Trade Co. Ltd. 78491 -
Accounts payable Xiamen Jiehang Engineering Testing Technology Co. Ltd. 44000 131810
Accounts payable Installation Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 33849 13011ANNUAL REPORT 2025
Ending book Beginning book
Item Related parties
balance balance
Accounts payable CCCC Photovoltaic Technology Co. Ltd. 28307 846373
Accounts payable CCCC Jetport Construction Technology (Shanghai) Co. Ltd. 11850 -
Accounts payable First Highway Engineering Group Co. Ltd. - 19252150
Accounts payable CCCC Capital Holdings Co. Ltd. - 16619656
Accounts payable ZPMC Southeast Asia Pte. Ltd - 11312732
Accounts payable No.3 Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. - 3150347
Accounts payable China Road & Bridge Corporation - 2851994
Accounts payable CCCC Fourth Harbor Consultants Co. Ltd. - 2298606
Chongqing Yongjiang Expressway Investment and Construction Co. Ltd. of FHEC
Accounts payable - 385568
of CCCC
Accounts payable Chuwa Bussan Co. Ltd. - 178380
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC Fourth Harbor Engineering
Accounts payable - 33849
Co. Ltd.Accounts payable Friede & Goldman Llc. - 44000
Notes payable CCCC Shanghai Equipment Engineering Co. Ltd. 87847670 194750113
Notes payable ZPMC Changzhou Coatings Co. Ltd. 24810043 12456633
Notes payable Shanghai Zhensha Longfu Machinery Co. Ltd. 12744092 497948
Notes payable CNPC & CCCC Petroleum Sales Co. Ltd. 4621553 1357231
Notes payable CCCC Wuhan Zhixing International Engineering Consulting Co. Ltd. 4575000 -
Notes payable China Communications Materials Co. Ltd. - 184380
Notes payable Chuwa Risheng (Beijing) International Trade Co. Ltd. - 58504
Contract liabilities Cele International Trading Company Limited 448132433 -
Contract liabilities CCCC Third Harbor Engineering Co. Ltd. 159608693 -
Contract liabilities China Harbour Engineering Co. Ltd. 65387819 624960
Jiangmen Hangtong Shipbuilding Co. Ltd. of CCCC Fourth Harbor Engineering
Contract liabilities 36383857 -
Co. Ltd.Contract liabilities Road & Bridge International Co. Ltd. 32878607 -
Contract liabilities CCCC Electrical and Mechanical Engineering Co. Ltd. 27109912 85514050
Contract liabilities China Road & Bridge Corporation 17249272 3305675
Contract liabilities No.2 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. 12928237 -
Contract liabilities CCCC Haifeng Wind Power Development Co. Ltd. 8955039 61299221
Contract liabilities CCCC Second Harbor Engineering Co. Ltd. 8662492 25132743
Contract liabilities CCCC Financial Leasing Co. Ltd. 2187009 -
Contract liabilities China Communications Information Technology Group Co. Ltd. 1479671 -
Contract liabilities China Communications Construction Company Ltd. 399000 399000
Contract liabilities No.3 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. 253739 253739
Contract liabilities CCCC Shanghai Equipment Engineering Co. Ltd. 100548 100548
Contract liabilities Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 42581 244452727
Contract liabilities Friede & Goldman Llc. 858 -
CCCC National Engineering Research Center of Dredging Technology and
Contract liabilities - 234699418
Equipment Co. Ltd.Contract liabilities CCCC International (Hong Kong) Holdings Limited - 63453174
Contract liabilities Zhenhua Engineering Co. Ltd. - 11480886
Contract liabilities CCCC - SHEC Fourth Highway Engineering Co. Ltd. - 9381153
Contract liabilities Lekki Free Trade Zone Lekki Port Project Company - 8789190
Contract liabilities CCCC-SHEC Fifth Highway Engineering Co. Ltd. - 2326834
Contract liabilities Xing An Ji Engineering Co. Ltd. of CCCC Third Harbor Engineering Co. Ltd. - 200000
Contract liabilities ZPMC Changzhou Coatings Co. Ltd. - 20303
Contract liabilities China Highway Engineering Consulting Corporation - 15232
Other payables Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 24093303 8387875Section VIII Financial Report
Ending book Beginning book
Item Related parties
balance balance
Other payables CCCC Second Harbor Engineering Co. Ltd. 3900134 -
Other payables CCCC Photovoltaic Technology Co. Ltd. 3471759 -
Other payables CCCC Financial Leasing Co. Ltd. 3138717 -
Other payables CCCC Tianjin Dredging Co. Ltd. 2000000 2000000
Other payables CCCG 1600544 1600544
Other payables CCCC Construction Group Co. Ltd. 1335036 -
Other payables CCCC Electrical and Mechanical Engineering Co. Ltd. 665174 638944
Other payables No.3 Engineering Co. Ltd. of CCCC Second Harbor Engineering Co. Ltd. 657337 657337
Other payables CCCC Urban Operation Management Co. Ltd. 601313 101313
Other payables ZPMC Changzhou Coatings Co. Ltd. 570938 571791
Other payables CCCC Xiongan Urban Construction Development Co. Ltd. 330000 330000
Other payables Xiamen Jiehang Engineering Testing Technology Co. Ltd. 292437 64237
Other payables CCCC Third Highway Engineering Co. Ltd. 257975 359068
Other payables CCCC Shanghai Equipment Engineering Co. Ltd. 217192 100000
Other payables CCCC Property Service Co. Ltd. 211250 211250
Shanghai China Communications Water Transportation Design & Research Co.Other payables 168050 216050
Ltd.Other payables China Communications Information Technology Group Co. Ltd. 157500 -
Other payables Shanghai Jiangtian Industrial Co. Ltd. 150000 150000
Other payables CCCC Dredging (Group) Co. Ltd. 123993 100988
Other payables CCCC Design Consulting Group Co. Ltd. 85776 1323443
Other payables China Highway Vehicle & Machinery Co. Ltd. 19800 -
Other payables CCCC (Xiamen) Information Co. Ltd 9861 9762
Other payables CCCC Third Harbor Engineering Co. Ltd. 9750 3350
Other payables CCCC Third Harbor Consultants Co. Ltd. 3000 63372
Other payables CCCC Water Transportation Planning and Design Institute Co. Ltd. 3000 59750
Other payables CCCC Shanghai Channel Equipment Industry Co. Ltd. 2000 2000
CCCC National Engineering Research Center of Dredging Technology and
Other payables 100 100
Equipment Co. Ltd.Other payables China Communications Construction Company Ltd. 21 19
Other payables CCCC Jetport Construction Technology (Shanghai) Co. Ltd. - 17500
Non-current liabilities due
CCCC Finance Company Ltd. - 544332444
within one year
Long-term payables CCCC Tianjin Dredging Co. Ltd. 207669506 -
Long-term payables CCCC Third Highway Engineering Co. Ltd. 121330525 -
Long-term payables CCCC Second Harbor Engineering Co. Ltd. 84569030 84569030
Long-term payables CCCC Construction Group Co. Ltd. 53120249 39558526
Long-term payables CCCC Xiongan Financial Leasing Co. Ltd. 2547110 -
Long-term payables CCCC Dredging (Group) Co. Ltd. - 262957217
Long-term payables CCCC Third Harbor Engineering Co. Ltd. - 37952715
Long-term payables No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. - 9520885
Long-term payables First Highway Engineering Group Co. Ltd. - 2547110
Long-term borrowings CCCC Finance Company Ltd. 550840000 36851257
(3) Other items
Applicable √ Not applicableANNUAL REPORT 2025
7. Commitments with related parties
√ Applicable Not applicable
Rendering of services for the Group by related parties
20252024
CCCC Third Highway Engineering Co. Ltd. 804300534 837367809
CCCC Third Harbor Engineering Co. Ltd. 611351331 611351330
CCCC First Highway Fifth Engineering Co. Ltd. 388366210 388366210
No. 2 Engineering Co. Ltd. of CCCC Fourth Highway Engineering Co. Ltd. 305931400 305931400
CCCC Tianjin Dredging Co. Ltd. 185520399 285042609
No.1 Engineering Co. Ltd. of CCCC First Harbor Engineering Co. Ltd. 56568996 56568996
CCCC Tunnel Engineering Company Limited 158070 158070
Shanghai Communications Construction Contracting Co. Ltd. - 2631313
Total 2352196940 2487417737
Sale of products provision of labor or leasing services to related parties
20252024
Cele International Trading Company Limited 1417681477 -
CCCC First Harbor Engineering Co. Ltd. 492391944 509700028
Jiangsu Longyuan Zhenhua Marine Engineering Co. Ltd 245834691 547586806
CCCC Third Harbor Engineering Co. Ltd. 231216425 87064870
CCCC Second Harbor Engineering Co. Ltd. 199915683 137435931
CCCC National Engineering Research Center of Dredging Technology
1616036311464887921
and Equipment Co. Ltd.Road & Bridge International Co. Ltd. 107937051 171204420
CCCC Haifeng Wind Power Development Co. Ltd. 86063256 338071801
CCCC Second Highway Engineering Co. Ltd. 71719696 92555656
Zhenhua Engineering Co. Ltd. 51220800 -
China Harbour Engineering Co. Ltd. 41381072 138308741
China Road & Bridge Corporation 32810252 75005515
CCCC Financial Leasing Co. Ltd. - 200708000
CCCC Road & Bridge South China Engineering Co. Ltd. - 175004771
CCCC Electrical and Mechanical Engineering Co. Ltd. - 97345133
Total 3139775978 4034879593
8. Others
√ Applicable Not applicable
Monetary funds deposited in the related parties
20252024
CCCC Finance Company Ltd. 1129883165 1719919382
XV. Share-based payment
1. Various equity instruments
(1) Details
Applicable √ Not applicableSection VIII Financial Report
(2) Outstanding share options or other equity instruments at the end of the period
√ Applicable Not applicable
Other equity instruments outstanding at
Stock options outstanding at the end of the period
the end of the period
Grantee Category
Range of exercise Remaining contract
Range of exercise price Remaining contract term
price term
Managerial staff First unlocking period for the first and reserved
R&D staff grants: from the first trading day after 24
months from the completion of the grant
Production staff
registration to the last trading day within 36
months from the completion of the grant
registration
Equity incentive plan in 2023
Second unlocking period for the first and
Exercise price: RMB 3.205 per share
reserved grants: from the first trading day
(2024: RMB 3.260 per share)
after 36 months from the completion of the
Option incentive plan (reserved
grant registration to the last trading day within
portion) in 2023
Sales staff 48 months from the completion of the grant Exercise price: RMB 3.945 per share
registration
(2024: RMB 4.000 per share)
Third unlocking period for the first and
reserved grants: from the first trading day
after 48 months from the completion of the
grant registration to the last trading day within
60 months from the completion of the grant
registration
Other description
None
2. Equity-settled share-based payments
√ Applicable Not applicable
Unit: RMB Currency: CNY
Method for determining the fair value of equity instruments
Option pricing model
on the grant date
Key inputs used in for measuring the fair value of equity
Dividend rate expected volatility risk-free rate expected term of stock option
instruments on the grant date
At each balance sheet date during the vesting period the optimum estimate is made
Basis of determination for the number of exercisable equity
according to subsequent information such as assessment results to adjust the expected
instruments
number of exercisable equity instruments
Reasons for significant differences between current and
previous estimates
Cumulative amount of equity-settled share-based payments
35783115
recognized in share premium
Other description:
None
3. Cash-settled share-based payments
Applicable √ Not applicable
4. Share-based payment expense for the current period
√ Applicable Not applicableANNUAL REPORT 2025
Unit: RMB Currency: CNY
Grantee Category Equity-settled share-based payment expenses Cash-settled share-based payment expenses
Managerial staff 12733132
R&D staff 7306159
Production staff 2441321
Sales staff 1158405
Total 23639017
Other description
None
5. Modifications to and termination of share-based payments
Applicable √ Not applicable
6. Others
Applicable √ Not applicable
XVI. Commitments and contingencies
1. Significant commitments
√ Applicable Not applicable
Significant external commitments as of the balance sheet date: nature and amounts
Commitments related to capital expenditure contracted for but not provided in the financial statements as at the balance
sheet date:
20252024
Buildings constructions and mechanical equipment 631565748 517736387
L/C commitments
The Group has entrusted banks to issue a number of letters of credit for the purchase of imported components. As at
December 31 2025 the outstanding amount under the L/Cs was about RMB 2609953659 (as at December 31 2024:
RMB 3534296423).
2. Contingencies
(1) Significant contingencies on the balance sheet date
Applicable √ Not applicable
(2) Where the Company has no significant contingencies requiring disclosure this fact shall also be stated:
Applicable √ Not applicable
3. Others
Applicable √ Not applicable
XVII. Post balance sheet events
1. Significant non-adjustment events
Applicable √ Not applicableSection VIII Financial Report
2. Profit distribution
Applicable √ Not applicable
3. Sales return
Applicable √ Not applicable
4. Description of other post balance sheet events
Applicable √ Not applicable
XVIII. Other significant events
1. Correction of previous accounting errorsFor details see “Analysis and explanation of the Company of the causes and the impacts of the major changes inaccounting policies and accounting estimates or correction of significant accounting errors” under “Important Events.”
2. Significant debt restructuring
Applicable √ Not applicable
3. Assets exchange
(1) Non-monetary assets exchange
Applicable √ Not applicable
(2) Other assets exchange
Applicable √ Not applicable
4. Pension plan
Applicable √ Not applicable
5. Discontinued operations
Applicable √ Not applicable
6. Segments
(1) Basis for determining reportable segments and accounting policies
√ Applicable Not applicable
The Group determines operating segments based on internal organization structure management requirements and
internal reporting system determines reportable segments based on operating segments and disclose the information
of the segments.An operating segment is a component of the Group that satisfies all of the following conditions: (1) it is capable of earning
revenues and incurring expenses in the course of its ordinary activities; (2) its operating results are regularly reviewed by
the Group’s management to make decisions about resources to be allocated to the segment and assess its performance;
and (3) separate accounting information is available regarding its financial position operating results and cash flows.Two or more operating segments may be aggregated into a single operating segment if they have similar economic
characteristics and meet certain specified conditions.Based on the Group’s internal organizational structure management requirements and internal reporting system the
Group identifies its business as a single operating segment for analysis and evaluation.ANNUAL REPORT 2025
(2) Financial information of reportable segments
Applicable √ Not applicable
(3) Where the Company has no reportable segments or is unable to disclose the total assets and total liabilities of each
reportable segment the reasons shall be explained
Applicable √ Not applicable
(4) Other description
√ Applicable Not applicable
Product and labor information
Income from external transactions
20252024
Port machinery 22776108389 20593596470
Heavy equipment 7382674206 8292575548
Steel structure and related income 3396764185 3341971292
Shipping and lifting services 1877356761 1324871410
Lease income 368120414 384134037
Engineering construction projects 285913696 413546349
Sales of materials and others 173520675 105725075
Total 36260458326 34456420181
Geographic information
Income from external transactions
20252024
Chinese Mainland 19830304826 18259962071
Asia (excluding Chinese Mainland) 7035536493 9789555392
North America 3150614443 1664901303
Europe 2846772292 1437730953
Africa 2393015993 1789859277
Chinese Mainland (export sales) 551014260 146391226
South America 432392071 1194357090
Oceania 20807948 173662869
Total 36260458326 34456420181
The income from external transaction is attributable to where the customer is located.Total non-current assets
20252024
Chinese Mainland 17416764503 15285643528
Asia (excluding Chinese Mainland) 11688389436 14500878668
Others 33245819 38792150
Total 29138399758 29825314346
The non-current assets are attributable to where they are located excluding financial assets long-term equity investment
goodwill deferred income tax assets and other non-current assets.
7. Other significant transactions and events affecting investors’ decision-making
Applicable √ Not applicable
8. Others
Applicable √ Not applicableSection VIII Financial Report
XIX. Notes to main items of the financial statements of the parent company
1. Accounts receivable
(1) Disclosure by aging
√ Applicable Not applicable
Unit: RMB Currency: CNY
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 14519895536 18424966163
Sub-total of items within 1 year 14519895536 18424966163
1-2 years 1005464636 1044066775
2-3 years 813203906 700264034
Over 3 years
3-4 years 654120468 332151118
4-5 years 203752381 745320707
Over 5 years 2398859383 1764635994
Total 19595296310 23011404791
(2) Disclosure by bad debt calculation method
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Book balance Provision for bad debts Book balance Provision for bad debts
Category Proportion Book Proportion Book
Proportion Proportion
Amount Amount of provision value Amount Amount of provision value
(%)(%)
(%)(%)
Provision for bad
debts accrued on 1049447444 5 1049447444 100 - 900605325 4 829355994 92 71249331
an individual basis
Including:
Provision for bad
debts accrued on 1049447444 5 1049447444 100 - 900605325 4 829355994 92 71249331
an individual basis
Provision for bad
18545848866951923781036101662206783022110799466961874951964820235847502
debts by portfolio
Including:
Aging portfolio 18545848866 95 1923781036 10 16622067830 22110799466 96 1874951964 8 20235847502
Total 19595296310 / 2973228480 / 16622067830 23011404791 / 2704307958 / 20307096833
Individual provision for bad debts:
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025
Name
Book balance Provision for bad debts Proportion of provision (%) Reason for provision
Provision for bad debts accrued on an Counterparty financial
10494474441049447444100
individual basis shortage
Total 1049447444 1049447444 100 /
Description of individual provision for bad debts:
Applicable √ Not applicable
Provision for bad debts by portfolio:
√ Applicable Not applicableANNUAL REPORT 2025
Items accrued by portfolio: Aging portfolio
Unit: RMB Currency: CNY
December 31 2025
Name
Book balance Provision for bad debts Proportion of provision (%)
Within 1 year 14519931635 171785489 1
1-2 years 1005464636 110372374 11
2-3 years 808609907 201868390 25
3-4 years 654079968 247986597 38
4-5 years 191306930 107651064 56
Over 5 years 1366455790 1084117122 79
Total 18545848866 1923781036
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
Basis for division of each stage and proportion of provision for bad debt
Accounts receivable with provision for bad debts accrued by credit risk features portfolio are as follows:
20252024
Carrying amount of Expected credit Carrying amount of Expected credit
Expected credit Expected credit
estimated credit losses loss for the entire estimated credit losses loss for the entire
loss rate (%) loss rate (%)
arising from default duration arising from default duration
Within 1 year 14519931635 1 171785489 18425074548 1 134263979
1-2 years 1005464636 11 110372374 1039472776 18 190653182
2-3 years 808609907 25 201868390 700223534 23 162280222
3-4 years 654079968 38 247986597 321807272 57 183234561
4-5 years 191306930 56 107651064 645903415 66 426779591
Over 5 years 1366455790 79 1084117122 978317921 79 777740429
Total 18545848866 1923781036 22110799466 1874951964
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) Movements in provision for bad debts
Applicable √ Not applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
There were no recoveries or reversals of provision for bad debts with significant amount in the year.
(4) Accounts receivable actually written off in the current period
Applicable √ Not applicable
Write-off of significant accounts receivable
Applicable √ Not applicable
Explanation of write-off of accounts receivable:
Applicable √ Not applicableSection VIII Financial Report
(5) Top 5 accounts receivable and contract assets in terms of ending balance presented by debtor
√ Applicable Not applicable
Unit: RMB Currency: CNY
Balance of accounts Ending balance of Proportion in total ending Ending balance
Ending balance of
Name receivable at the end accounts receivable and balance of accounts receivable of provision for
contract assets
of the period contract assets and contract assets (%) bad debts
Customer 1 8393533256 - 8393533256 38 -
Customer 2 1432215747 - 1432215747 6 -
Customer 3 1254933802 - 1254933802 6 -
Customer 4 1055516817 - 1055516817 5 -
Customer 5 734729903 - 734729903 3 -
Total 12870929525 - 12870929525 58 -
Other description:
None
Other description:
√ Applicable Not applicable
Changes in the provision for bad debts of accounts receivable are as follows:
Provision in the current Recovery or reversal in the
Opening balance Write-off in the year Closing balance
year year
20252704307958784654133(515733611)-2973228480
20242332223279860737529(488652850)-2704307958
2. Other receivables
Item presentation
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item December 31 2025 December 31 2024
Interest receivable
Dividends receivable
Other receivables 2591815489 3273122746
Total 2591815489 3273122746
Other description:
Applicable √ Not applicable
Interest receivable
(1) Classification of interest receivable
Applicable √ Not applicable
(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 applicableANNUAL REPORT 2025
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 interests receivable with changes in provisions for losses in the
current period:
Applicable √ Not applicable
(5) Movements in 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
Write-off of significant interest receivable
Applicable √ Not applicable
Note to write-off:
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
Dividends receivable
(7) Dividends receivable
Applicable √ Not applicable
(8) Significant dividends receivable aging over 1 year
Applicable √ Not applicable
(9) 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
(10) 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
NoneSection VIII Financial Report
Explanation of significant changes in the book balance of dividends receivable with loss provision changes in the current
period:
Applicable √ Not applicable
(11) Movements in provision for bad debts
Applicable √ Not applicable
The recovered or reversed provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
None
(12) Dividends receivable actually written off in the current period
Applicable √ Not applicable
Write-off of significant dividends receivable
Applicable √ Not applicable
Note to write-off:
Applicable √ Not applicable
Other description:
Applicable √ Not applicable
Other receivables
(13) Disclosure by aging
√ Applicable Not applicable
Unit: RMB Currency: CNY
Aging Ending book balance Beginning book balance
Within 1 year (including 1 year) 2605905704 3086058005
Sub-total of items within 1 year 2605905704 3086058005
1-2 years 22997585 209809641
2-3 years 31859656 34422810
Over 3 years
3-4 years 3083366 288375
4-5 years 275817 303399
Over 5 years 8924113 8908993
Total 2673046241 3339791223
(14) Classification by nature of funds
√ Applicable Not applicable
Unit: RMB Currency: CNY
Nature of funds Ending book balance Beginning book balance
Current accounts between subsidiaries 2188141147 2893197219
Taxes on outstanding payment receivable 401924026 343815031
Customs deposits 42995456 38282346
Bid and performance bonds 16534477 30880890
Lease payment receivable 8984183 11849430
Money on call of on-site product service 8243627 12074961
Staff loan receivable 6160325 9565349
Others 63000 125997
Total 2673046241 3339791223ANNUAL REPORT 2025
(15) Provision for bad debts
√ Applicable Not applicable
Unit: RMB Currency: CNY
Stage I Stage II Stage III
Provision for bad debts Expected credit losses Expected credit loss for the Expected credit loss for Total
over the next 12 entire duration (no credit the entire duration (credit
months impairment) impairment occurred)
Balance as of January 1 2025 60768389 5900088 66668477
Balance as of January 1 2025 during
60768389590008866668477
the reporting period
--Transferred to Stage II
--Transferred to Stage III -65227268 65227268 -
--Reversal to Stage II
--Reversal to Stage I
Provision in the current period 12423527 3458649 15882176
Reversal in the current period -1319901 -1319901
Write-off in the current period
Charge-off in the current period
Other changes
Balance as of December 31 2025 6644747 74586005 81230752
Basis for division of each stage and proportion of provision for bad debt
None
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
(16) Movements in provision for bad debts
Applicable √ Not applicable
The reversed or recovered provision for bad debts with significant amount:
Applicable √ Not applicable
Other description:
None
(17) Other receivables actually written off in the current period
Applicable √ Not applicable
Write-off of other significant accounts receivable:
Applicable √ Not applicable
Explanation of write-off of other receivables:
Applicable √ Not applicableSection VIII Financial Report
(18) Top 5 other receivables in terms of ending balance presented by debtor
√ Applicable Not applicable
Unit: RMB Currency: CNY
Proportion in the Balance of provision
December 31
Name total balance of other Nature Aging for bad debts as of
2025
receivables (%) December 31 2025
Transactions with
ZPMC Group (Hainan) Co. Ltd. 906191110 34 Within 1 year -
subsidiaries
Shanghai Zhenhua Heavy Industries
Transactions with
Port Machinery General Equipment Co. 598293469 22 Within 1 year -
subsidiaries
Ltd.Shanghai Zhenhua Heavy Industries
Transactions with
Technology Co. Ltd. (formerly known 438056444 16 Within 1 year -
subsidiaries
as: ZPMC Electric Co. Ltd.)
Transactions with
ZMPC Germany GmbH 109236707 4 Within 1 year -
subsidiaries
Shandong Lanqiao Petrochemical Co.
65227269 2 Unpaid taxes receivable Over 5 years 65227269
Ltd.Total 2117004999 79 / / 65227269
(19) Presented in other receivables due to centralized fund management
Applicable √ Not applicable
Other description:
√ Applicable Not applicable
2025
Book balance Provision for bad debts
Accruing Book value
Amount Proportion (%) Amount
proportion (%)
Provision for bad debts accrued on an
74586005374586005100-
individual basis
Provision for bad debts accrued by credit
2598460236976644747-2591815489
risk features portfolio
Total 2673046241 100 81230752 3 2591815489
2024
Book balance Provision for bad debts
Accruing Book value
Amount Proportion (%) Amount
proportion (%)
Provision for bad debts accrued on an
5900088-5900088100-
individual basis
Provision for bad debts accrued by credit
33338911351006076838923273122746
risk features portfolio
Total 3339791223 100 66668477 2 3273122746
As at December 31 2025 other significant receivables with provision for bad debts accrued on an individual basis were as
follows: (2024: nil).
2025
Book balance Provision for bad debts Accruing proportion (%) Reason for provision
Counterparty financial
Other receivables 1 65227269 (65227269) 100
shortage
Total 65227269 (65227269)ANNUAL REPORT 2025
As at December 31 2025 other receivables with provision for bad debts accrued by portfolio were as follows:
Book balance Provision for impairment Proportion of provision (%)
Within 1 year 2590505029 13142 -
1-2 years 526038 78906 15
2-3 years 656210 196863 30
3-4 years 616792 308396 50
4-5 years 434909 326182 75
Over 5 years 5721258 5721258 100
Total 2598460236 6644747
3. Long-term equity investments
√ Applicable Not applicable
Unit: RMB Currency: CNY
December 31 2025 December 31 2024
Item Provision for Provision for
Book balance Book value Book balance Book value
impairment impairment
Investment in subsidiaries 9096539084 9096539084 8583188115 8583188115
Investment in joint ventures
1787052641178705264117678332951767833295
and associates
Total 10883591725 10883591725 10351021410 10351021410
(1) Investment in subsidiaries
√ Applicable Not applicable
Unit: RMB Currency: CNY
Opening Increase/decrease in the current period Ending
Opening balance balance of Closing balance balance of
Investee
(book value) provision for Further Reduced Provision for Others (book value) provision for
impairment investment investment impairment impairment
Shanghai Zhenhua Heavy Industries Port Machinery
2201094108----2437202201337828-
General Equipment Co. Ltd.Nanjing Ninggao New Channel Construction Co. Ltd. 100000000 - - - - - 100000000 -
Nantong Zhenhua Heavy Equipment Manufacturing Co.
2500007364----3475862500354950-
Ltd.Shanghai Zhenhua Heavy Industries Group (Nantong)
1506125799----2155991506341398-
Transmission Machinery Co. Ltd.CCCC Zhenjiang Investment Construction Management
70000000-----70000000-
Development Co. Ltd.ZPMC Qidong Marine Engineering Co. Ltd. 203000000 - - - - 272119 203272119 -
CCCC Liyang Urban Investment and Construction Co. Ltd. 363000000 - - - - - 363000000 -
Shanghai Zhenhua Shipping Co. Ltd. 140273619 - - - - 24323 140297942 -
Shanghai Zhenhua Ocean Engineering Service Co. Ltd. 100000000 - - - - 307084 100307084 -
Shanghai Zhenhua Heavy Industries Technology Co. Ltd.
50074440----116801451242454-
(formerly known as: ZPMC Electric Co. Ltd.)
CCCC Investment & Development Qidong Co. Ltd. 297500000 - - - - - 297500000 -
ZPMC North America Inc. 18564520 - - - - - 18564520 -
ZPMC Netherlands Co?peratie U.A. 29434964 - - - - - 29434964 -
Shanghai Zhenhua Port Machinery Heavy Industries Co.
12423578----97342713397005-
Ltd.ZPMC Machinery Equipment Services Co. Ltd. 7000000 - - - - 48647 7048647 -
ZPMC Lanka Company (Private) Limited 6183978 - - - - - 6183978 -
ZPMC Middle East Fze 5271120 - - - - - 5271120 -
ZPMC Zhangjiagang Port Machinery Co. Ltd. 4518000 - - - - - 4518000 -
ZPMC Limited Liability Company 10172070 - - - - - 10172070 -
ZPMC Southeast Asia Holding Pte. Ltd. 12513114 - - - - - 12513114 -
ZPMC Engineering Africa (Pty) Ltd. 3084000 - - - - - 3084000 -Section VIII Financial Report
Opening Increase/decrease in the current period Ending
Opening balance balance of Closing balance balance of
Investee
(book value) provision for Further Reduced Provision for Others (book value) provision for
impairment investment investment impairment impairment
ZPMC Engineering (India) Private Limited 2953200 - - - - - 2953200 -
ZPMC Brazil Servi?o Portuários LTD. 2936771 - - - - - 2936771 -
ZPMC Korea Co. Ltd. 6398059 - - - - - 6398059 -
ZPMC UK LD 2797921 - - - - - 2797921 -
ZPMC Australia Company (Pty) Limited 2708500 - - - - - 2708500 -
CCCC Rudong Construction Development Co. Ltd. 82510000 - - - - - 82510000 -
CCCC Yongjia Construction Development Co. Ltd. 315867200 - - - - - 315867200 -
CCCC Zhenhua Lvjian Technology (Ningbo) Co. Ltd. 4000000 - - - - - 4000000 -
ZPMC Latin America Holding Corporation 3307850 - - - - - 3307850 -
ZPMC GmbH Hamburg 207940 - - - - - 207940 -
ZPMC Fuzhou Offshore Construction Co. Ltd. 212000000 - - - - - 212000000 -
CCCC (Dongming) Investment and Construction Co. Ltd. 218260000 - - - - - 218260000 -
Zhenhua Haitong Intelligent Equipment Co. Ltd. 40000000 - - -40000000 - - - -
Shanghai Zhenhua Smart Enterprise Management Co. Ltd. 1000000 - - -1000000 - - - -
Xiong’an Zhenhua Co. Ltd. 15000000 - - - - - 15000000 -
CCCC Zhenhua Intelligent Parking (Hengyang) Co. Ltd. 33000000 - - - - - 33000000 -
ZPMC Group (Hainan) Co. Ltd. - - 500000000 - - - 500000000 -
CCCC Zhenhua Offshore Hoisting and Pipe-Laying Core
--50000000---50000000-
Equipment Engineering Technology (Shanghai) Co. Ltd.ZPMC Morocco Co. Ltd. - - 750450 - - - 750450 -
Total 8583188115 - 550750450 -41000000 - 3600519 9096539084 -
(2) Investment in joint ventures and associates
√ Applicable Not applicable
Unit: RMB Currency: CNY
Increase/decrease in the current period
Opening Cash Ending
Beginning balance of Profit or loss Adjustment dividends Ending balance of
Investee Balance provision Changes Further Reduced on investments of other or profit Provision for Balance
(book value) for in other Others
provision for
investment investment under the comprehensive declared impairment (book value) impairment
impairment equityequity method income to be
distributed
I. Joint ventures
Jiangsu Longyuan Zhenhua
3678957441494259369390003
Marine Engineering Co. Ltd
ZPMC Mediterranean Liman
Makinalari Ticaret Anonim 385318 -385318 -
Sirketi
Sub-total 368281062 1108941 369390003
II. Associates
CCCC Financial Leasing Co.
66117825653729432535694670318-12247158703866542
Ltd.CCCC Yancheng Construction
40253047319681108422211581
Development Co. Ltd.CCCC Estate Yixing Co. Ltd. 203058465 -10388856 192669609
China communications
622471802374-136419960885355
Construction USA Inc.CCCC Photovoltaic
37851683-400508552199172
Technology Co. Ltd.ZPMC Changzhou Coatings
250762808701592-384958029928292
Co. Ltd.CCCC Xiongan Urban
Construction Development 7609896 491363 8101259
Co. Ltd.Sub-total 1399552233 -40050855 74416185 -828505 670318 -16096738 1417662638
Total 1767833295 -40050855 75525126 -828505 670318 -16096738 1787052641ANNUAL REPORT 2025
(3) Impairment test of long-term equity investments
Applicable √ Not applicable
Other description:
None
4. Operating revenue and operating costs
(1) Operating revenue and operating costs
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the current period Amount incurred in the previous period
Item
Revenue Cost Revenue Cost
Main business 29646461796 26987625132 32033858447 29036791540
Other business 3003516865 2874866239 2533062181 2410014017
Total 32649978661 29862491371 34566920628 31446805557
(2) Breakdown of operating income and operating cost
√ Applicable Not applicable
Unit: RMB Currency: CNY
XXX-Division Total
Classification of Contract
Operating revenue Operating costs Operating revenue Operating costs
Type of goods
Port machinery 21033363587 18526817384
Heavy equipment 5496832220 5423269472
Steel structure and related income 3111468435 2970703053
Sales of materials and others 2559172564 2571488237
Lease income 444344301 303378002
Engineering construction projects 4797554 66835223
By region of operation
Chinese Mainland 18164959143 17036081558
Asia (excluding Chinese Mainland) 6366839847 5721427974
North America 2709898880 2390479164
Europe 2478183160 2156394119
Africa 2239894995 1901086022
Chinese Mainland (export sales) 473489700 481544719
South America 215566503 171624628
Oceania 1146433 3853187
Market or customer type
Contract type
By time of goods transfer
Transfer at a certain point 27116833606 24447021505
Transfer within a certain period 5533145055 5415469866
By contract term
By sales channel
Total 32649978661 29862491371
Other description:
√ Applicable Not applicable
NoneSection VIII Financial Report
(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:
None
5. Investment income
√ Applicable Not applicable
Unit: RMB Currency: CNY
Amount incurred in the Amount incurred in the
Item
current period previous period
Income from long-term equity investments calculated under cost method 147541281 127842556
Income from long-term equity investment calculated under the equity method 75525126 38775117
Investment income from disposal of long-term equity investment
Investment income from held-for-trading financial assets during the holding period 1648520 2043520
Dividend income from other equity instrument investment during holding 171626 1602665
Interest income from debt investment during holding
Interest income from other debt investment during holding
Investment income from disposal of held-for-trading financial assets 109073742 11751531
Investment income from disposal of other equity instrument investment
Investment income from disposal of debt investment
Investment income from disposal of other debt investment
Income from debt restructuring
Investment loss resulting from disposal of long-term equity investment -5668458 -11416280
Losses on derecognition of financial assets measured at amortized cost -11574005 -54613813
Others -3005783 -2880805
Total 313712049 113104491
Other description:
None
6. Others
Applicable √ Not applicableANNUAL REPORT 2025
XX. Supplementary information
1. Items of non-recurring profit or loss in current period
√ Applicable Not applicable
Unit: RMB Currency: CNY
Item Amount Remarks
Profit or loss from disposal of non-current assets including the write-off portion of the provision of asset
36480392
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 157488939
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 assets and financial liabilities except for effective hedging 81459300
operations associated with the Company’s normal operations
Capital occupation fees charged to the non-financial enterprises and included in current profit or loss
Profit or loss from the assets entrusted to others for investment or management
Profit or loss from external entrusted loans
Losses of various assets caused by force majeure such as natural disasters
Reversal of provision for impairment of receivables subject to separate 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 of the recognizable net assets of the invested unit at the time of
acquiring
Current net profit or loss of the subsidiary generated from the business combination under common control
from the beginning of the period to the combination date
Profit or loss from non-monetary assets exchange
Profit or loss from debt reorganization
One-time expenses incurred by the enterprise due to the discontinuation of related business activities such
as the expenditure of employee resettlement etc.One-time impact on the current profit and loss due to adjustments in laws and regulations of taxation and
accounting
Share payment expenses recognized once due to cancellation or modification of equity incentive plans
Profits and losses resulting from changes in the fair value of employee compensation payable after the
exercise date in terms of cash-settled share payments
Profit or loss on changes in fair value of investment property by follow-up measurement in fair value mode
Profits from transactions with obviously unfair transaction prices
Profit or loss from the contingencies unrelated to the normal business of the Company
Custody fees of entrusted operation
Other non-operating revenue and expenses except for the above- mentioned items 7422903
Other profit or loss items that conform to the definition of non- recurring profit or loss
Less: Affected amount of income tax 43453352
Affected amount of minority equity (after tax) 6495631
Total 232902551Explanations 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 applicable
Other description:
Applicable √ Not applicableSection VIII Financial Report
2. Return on net assets and earnings per share
√ Applicable Not applicable
Earnings per share
Weighted average rate of return
Profit in the reporting period
on net assets (%) Basic earnings per Diluted earnings per
share share
Net profit attributable to ordinary shareholders of the Company 4.69 0.14 0.14
Net profits attributable to the company’s common shareholders
3.190.090.09
after deducting non-recurring profits and losses
3. Differences in accounting data under domestic and overseas accounting standards
Applicable √ Not applicable
4. Others
Applicable √ Not applicable
Chairman: You Ruikai
Date of reporting approved by the Board of Directors: March 30 2026
Revision information
Applicable √ Not applicable
沪公网安备31011802005267号
