振华重工：2019年年度报告（英文版）.PDF
Shanghai Zhenhua Heavy Industries Co., Ltd.Annual Report 2019Stock code: 600320 900947Stock Name: Zhenhua Heavy Zhenhua B-share126718313637434546177DefinitionsCompany Profile and Principal Financial IndexesBusiness ProfileDiscussion and Analysis of the PerformanceImportant EventsChanges in Ordinary shares and Shareholders SituationPreferred SharesDirectors, Supervisors, Senior Executives and EmployeesCorporate governanceRelated Information on Corporate BondsFinancial ReportList of Reference Documents Section ISection IISection III Section IVSection VSection VISection VIISection VIII Section IXSection XSection XI Section XIIThe Board of Directors, Board of Supervisors, directors, supervisors and senior executives of the Company hereby guarantee the truthfulness, accuracy and completeness of the contents carried in this annual report, guarantee no false record, serious misleading statement or great omission carried in this annual report and guarantee to assume the legal responsibilities jointly and separately.All directors of the Company are present at the board meeting.Ernst & Young LLP. (Special General Partnership) issues the standard audit report without qualified opinion for the Company.Zhu Lianyu, the chairman of the Company, Huang Qingfeng, responsible person for accounting, and Zhu Xiaohuai , the person in charge of accounting organ (accountant in charge) hereby declare that the financial statements in this Annual Report are true, accurate and complete.Proposal for profit distribution or common reserves capitalizing during the reporting period reviewed by the board of directorsProfit distribution proposal for 2019: based on the total share capital registered on the registration date of the implementation of equity distribution, a cash dividend of RMB 0.5 per 10 shares (tax-included) will be distributed to all shareholders from the undistributed profit as at Dec 31, 2019. The total cash dividend to be distributed will be RMB 263,417,675.05 based on the total share capital of 5,268,353,501 shares as at December 31, 2019.The Company will neither distribute the bonus shares nor transfer the capital public reserves into the paid-in capital.Risk declaration of forward-looking statementsApplicable Not ApplicableDoes the Company have non-operating funds occupied by the holding shareholder and its related parties?NoDoes the Company provide the external guarantees in breach of the stipulated decision-making procedure?NoMajor Risk WarningThe company has described the related potential risks in this annual report. Investors may pay attention to the same. Please refer to discussion and analysis of the performance and related chapters for the risks the company may be confronted with in the future development.OthersApplicable Not Applicable 12345678910Important Notice 1The terms used in this report shall be defined as follows, unless otherwise specified:Definitions of high frequency termsCompany, the CompanyRefers toShanghai Zhenhua Heavy Industries Co., Ltd.CCCCRefers toChina Communications Construction Company Ltd.CCCGRefers toChina Communications Construction Group Co., Ltd.CCCG HKRefers toCCCG (HK) Holding LimitedReporting periodRefers toFrom Jan. 1, 2019 to Dec. 31, 2019I. DefinitionsSection IDefinitions2Company Information1234Company name in Chinese上海振华重工（集团）股份有限公司Abbreviation of the Company name in Chinese振华重工Company name in EnglishSHANGHAI ZHENHUA HEAVY INDUSTRIES CO., LTD.Abbreviation of the Company name in EnglishZPMCLegal representative of the CompanyZhu LianyuContact informationSecretary of the Board of DirectorsNameSun LiAddressNo. 3261, Dongfang Road, ShanghaiTelephone021-50390727Fax021-31193316E-mailIRZPMC.COMBasic InformationRegistered addressNo.3470, Pudong South Road, ShanghaiPostal code of registered address200125Office addressNo. 3261, Dongfang Road, ShanghaiPostal code of office address200125Websitehttp:/E-mailIRZPMC.COMInformation disclosure and placement locationNewspaper designated by the Company for information disclosureShanghai Securities News, Hong Kong Wen Wei PoWebsite designated by China Securities Regulatory Commission (CSRC) for publishing the annual report of the CPlacement location of the annual report of the CompanySecurities Affairs OfficeSection II Company Profile and Principal Financial Indexes3Stock information5Stock InformationStock typeStock exchangeStock abbreviationStock codeStock abbreviation before changeA-shareShanghai Stock Exchange (SSE)Zhenhua Heavy600320ZPMC IndustriesB-shareShanghai Stock Exchange (SSE)Zhenhua B-share900947-6Other relevant informationPublic accounting firm engaged by the Company (domestic)NameErnst & Young LLP (Special General Partnership)Office addressRoom 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1 East Changan Street, Dongcheng District, Beijing Signed by the AccountantsLiu Wei, Gu Chengli(I) Main accounting dataMain accounting data and financial indexes in recent three years7Unit: Yuan Currency: RMBMain accounting dataYear 2019Year 2018Year-on-year change (%)Year 2017Operating revenue24,595,587,88321,812,389,64412.7621,858,814,000Net profit attributable to the shareholders of the listed company 514,930,143443,005,09216.24300,195,422Net profit attributable to the shareholders of the listed company after deducting the non-recurring profits and losses311,117,615121,335,528156.41277,837,568Net cash flows from operating activities1,290,213,109553,943,979132.911,332,209,274At the end of 2019At the end of 2018Year-on-year change (%)At the end of 2017Net assets attributable to the shareholders of the listed company15,543,404,01415,185,861,9522.3515,011,306,366Total assets74,410,783,30070,598,364,6275.4067,519,953,829(II) Major financial indexesMajor financial indexesYear 2019Year 2018Year-on-year change (%)Year 2017Basic earnings per share(RMB/share)0.0980.08416.670.057Diluted earnings per share (RMB/share)0.0980.08416.670.057Basic earnings per share after deducting non-recurring profits and losses (RMB/share)0.0590.023156.520.053Weighted average ROE (%)3.392.92+0.471.99Weighted average ROE after deducting non-recurring profits and losses (%)2.060.80+1.261.844Notes to the main accounting data and financial indexes in the past 3 years before the end of the reporting periodApplicable Not Applicable Differences in accounting data under domestic and overseas accounting standards1.Difference in net profits and net assets attributable to the shareholders of the listed company in the financial statement synchronously disclosed under the international and national accounting standards Applicable Not Applicable 2.Difference in net profits and net assets attributable to the shareholders of the listed company in the financial statement synchronously disclosed under the domestic and overseas accounting standardsApplicable Not Applicable 3.Explanation for differences between the domestic and overseas accounting standards:Applicable Not Applicable Main financial data in 2019 by quartersUnit: Yuan Currency: RMB89Q1(Jan. to Mar.)Q2(Apr. to Jun.)Q3(Jul. to Sep.)Q4(Oct. to Dec.)Operating revenue4,776,791,9745,409,998,7605,351,591,7499,057,205,400Net profit attributable to the shareholders of the listed company98,988,791123,433,88520,809,039271,698,428Net profit attributable to the shareholders of the listed company after deducting the non-recurring profits and losses-134,306,822172,856,694145,747,664126,820,079Net cash flows from operating activities59,817,5521,002,96230,455,3761,198,937,219Notes to differences between the quarterly data and the data in periodically disclosed reportsApplicable Not Applicable Non-recurring profit and loss items and amountApplicable Not applicableUnit: Yuan Currency: RMBNon-recurring profit and loss itemsAmount in 2019Note (if applicable)Amount in 2018Amount in 2017Profit or loss from disposal of non-current assets49,091,913155,557,71613,285,984Government grants included in current profits and losses except for government grants closely related to the Company business, in line with national policies and obtained by quota or quantity at unified state standards93,271,980114,412,51783,502,544Profit or loss on changes in fair values of financial assets held for trading and financial liabilities held for trading and investment income obtained from disposal of financial assets held for trading, financial liabilities held for trading and available-for-sale financial assets, except for effective hedging operations associated with the companys normal operations146,517,39774,200,75020,563,270Reversal of provision for impairment of receivables subject to separate impairment test 150,327,138-105Non-recurring profit and loss itemsAmount in 2019Note (if applicable)Amount in 2018Amount in 2017Other non-operating revenue and expenses except for the above-mentioned items-18,553,180-67,069,856-70,077,032Affected amount of minority equity-23,013,076-30,908,588-14,565,022Affected amount of income tax-43,502,506-74,850,113-10,351,890Total203,812,528321,669,56422,357,854Items measured at fair valueApplicable Not applicableUnit: Yuan Currency: RMBOthersItemBeginning balanceEnding balanceCurrent changeImpact on current profitsJiangxi Huawu Brake Co., Ltd.102,163,301132,211,33230,048,03130,048,031Qingdao Port International Co., Ltd.476,713,253510,671,77133,958,51833,958,518China Railway Signal & Communication Corporation Limited591,773,048479,560,537-112,212,511-112,212,511Shenwan Hongyuan Group Co., Ltd.889,7921,119,345229,553229,553COSCO Shipping Holdings Co., Ltd.0585,555,555585,555,555165,555,556Derivative financial assets44,481,80622,235,244-22,246,562-22,246,562Derivative financial liabilities0-7,312,741-7,312,741-7,312,741Equity instrument investment8,438,2788,438,27800Hunan Fengri Power & Electric Co., Ltd.20,398,05124,348,6893,950,6380CCCC Highway Bridges National Engineering Research Centre Co., Ltd.18,693,21517,649,136-1,044,0790CCCC National Engineering Research Center of Dredging Technology and Equipment7,837,1469,005,3781,168,2320Shanghai Zhenhua Port Machinery (Group) Shenyang Elevator Co., Ltd.2,271,4002,865,664594,2640ZMPC Ningbo Transmission Machinery Co., Ltd5,308,5147,241,6101,933,0960Shanghai Zhenhua Gangkou Machine (Group) Longchang Lifting Equipment Co., Ltd.818,203870,79152,5880Total1,279,786,0071,794,460,589514,674,58288,019,844Applicable Not applicable11126I. Main business, business model of the Company and the industrial profile during the reporting periodThe Company is a famous heavy-duty equipment manufacturer, and a state-owned listed company on A and B shares, with the headquarters in Shanghai and multiple production bases in Shanghai and Nantong. It is also the biggest port heavy-duty machinery equipment manufacturer in the world. The business scope of ZPMC mainly covers: marine heavy industry, heavy special steel structure, marine transportation and installation, system integration, engineering general contracting, electrical product, software development and integration, investment and financing business, integrated services; It is also actively expanding smart industries, livelihood consumption, integrated development and digital industries. At present, the products of the Company enter 103 nations and regions. The business scope of the Company covers: design, construction, installation and contracting of large port loading and unloading system and equipment, offshore heavy equipment, engineering machinery, engineering vessels and large metal structural parts and their parts and components; ship repair; leasing of equipment; leasing of self-owned houses; leasing of self-produced crane; sales of the products made by the sales company; international sea transportation by special purpose vessels that can be transported with the whole equipment; specialized contracting of steel structure engineering; construction of electric construction engineering; and construction of electromechanical installation and construction engineering; research and development, installation and sales of oil and gas exploration equipment and mechanical engineering equipment; design of marine engineering buildings; technology development, technical consulting, technical services, and technology transfer in the fields of computer software and information, computer network, mechanical technology, environmental protection technology, new energy technology, intelligent technology; installation and maintenance of railway and urban rail transportation equipment and accessories; property management; loading, unloading, handling and storage; parking lot (warehouse) operation and management; import and export business of goods and technologies (In case of quota, license management, special regulations, quality inspection, safety inspection and construction qualification requirements involved, it shall not carry out the business activities before obtaining the corresponding qualifications or licenses in accordance with the relevant national regulations).Items subject to approval according to law can be carried out only after such approval is granted by the competent authoritiesII. Explanation for major changes in prime assets of the Company during the reporting periodApplicable Not Applicable III. Analysis of the core competitiveness during the reporting period Applicable Not Applicable There was no material difference in the core competitiveness of the Company during the reporting period.Section IIIBusiness Profile7I. Discussion and Analysis of the PerformanceIn 2019, under the guidance of the One Entity with Two Wings strategy, the Company proceeded with confidence, seized development opportunities, and took innovation as its source of power. Through continuous deepening of reforms and continuous improvement of management system construction, the Companys core competitiveness was further consolidated. Its business segments are developing with steady progress.During the reporting period, the Companys leading position in the port machinery business was further consolidated. It explored new market of port machinery products, and the business entered 103 nations and regions. Many new domestic and international projects have been signed for the automated terminal business. Offshore destocking work of offshore engineering has achieved periodic results, and has successfully delivered several large offshore projects. The steel structure business has improved significantly, and the amount of newly signed contracts has increased sharply. Investment business projects under construction progressed steadily, signing the first operational investment project. For the marine service business, the expansion of the high-end shipping, installation and offshore wind power general contracting business markets are further strengthened. The market share of the electrical business and the market influence of the EZ brand have further increased. Progress has been made in integrated services, and after-sales service quality and contract value have been improved. The general cont
