振华重工2018年年度报告(英文版)

1. Stock   code: 600320 900947   Stock Name: Zhenhua Heavy Zhenhua B-share




 1.
      Shanghai Zhenhua Heavy Industries Co., Ltd.

                           Annual Report 2018
Section I      Definitions                                                       4

Section II     Company Profile and Principal Financial Indexes                   5

                                                                                 9
Section III    Business Profile
                                                                                10
Section IV     Discussion and Analysis of the Performance

Section V                                                                       20
               Important Events

Section VI     Changes in Ordinary Shares and Information about Shareholders    36

Section VII    Preference Shares                                                41

Section VIII   Directors, Supervisors, Senior Management and Employees          42

Section IX     Corporate Governance                                             48

Section X      Corporate Bonds                                                  50

Section XI     Financial Statement                                              51
Section XII    Contents of Reference Files                                     185
                                Important Notice

   1. The Board of Directors, Board of Supervisors, directors, supervisors and senior executives
of the Company hereby guarantee the truthfulness, accuracy and completeness of the contents
carried in this annual report, guarantee no false record, serious misleading statement or great
omission carried in this annual report and guarantee to assume the legal responsibilities jointly
and separately.
   2. All directors of the Company are present at the board meeting.
   3. Ernst & Young LLP. (Special General Partnership) issues the standard audit report without
qualified opinion for the Company.
   4. 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.
   5. Proposal for profit distribution or common reserves capitalizing during the reporting period
reviewed by the board of directors
   Profit distribution proposal for 2018: based on the total share capital of 5,268,353,501 shares
by Dec. 31, 2018, a cash dividend of RMB 0.5 Yuan per 10 shares (tax-included) will be distributed
to all shareholders from the undistributed profit by Dec. 31, 2018 and the total cash dividend to be
distributed will be RMB 263,417,675.05 Yuan. The Company will not distribute the bonus shares
or transfer the capital public reserves into the paid-in capital.
   6. Risk declaration of forward-looking statements
   √Applicable □Not applicable
   7. Does the Company have non-operating funds occupied by the holding shareholder and its
related parties?
   No
   8. Does the Company provide the external guarantees in breach of the stipulated decision-
making procedure?
   No
   9. Major Risk Warning
   The company has described the related potential risks in this annual report. 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.
   10. Others
   □Applicable √Not applicable

   This English version is converted from the Chinese version. In case of any discrepancy
between the Chinese version and the English version, the Chinese version shall prevail.




                                                                                                       3
Section I                     Definitions


I.Definitions

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


                                                 Definitions of high frequency terms

    Company, the Company                             Refers to        Shanghai Zhenhua Heavy Industries Co., Ltd.

    CCCC                                             Refers to        China Communications Construction Company Ltd.

    CCCG                                             Refers to        China Communications Construction Group

    CCCG HK                                          Refers to        CCCG (HK) Holding Limited

                                                                      Public-Private-Partnership, a cooperation mode between the
                                                                      government and the social capital, which means the pooling
                                                                      of interest, allocation of risks and the long-term cooperation
                                                                      relationship established by and between the government and
    PPP                                              Refers to
                                                                      the social capital by means of licensed operation, service
                                                                      procurement and stock equity cooperation in order to increase the
                                                                      supply capability of the public goods and service and improve the
                                                                      supply efficiency.

    Reporting period                                 Refers to        From Jan. 1, 2018 to Dec. 31, 2018




4
Section II                       Company Profile and Principal Financial Indexes


1.Company Information


 Company 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 English                                     Shanghai Zhenhua Heavy Industries Co., Ltd.

 Abbreviation of the Company name in English                 ZPMC

 Legal representative of the Company                         Zhu Lianyu


2.Contact information


                                                             Board Secretary

 Name                                                        Sun Li

 Address                                                     No. 3261, Dongfang Road, Shanghai

 Telephone                                                   021-50390727

 Fax                                                         021-31193316

 E-mail                                                      IR@ZPMC.COM



3.Basic information


 Registered address                                           No. 3470, Pudong South Road, Shanghai

 Postal code of registered address                            200125

 Office address                                               No. 3261, Dongfang Road, Shanghai

 Postal code of office address                                200125

 Website                                                      http://www.zpmc.com

 E-mail                                                       IR@ZPMC.COM


4.Information disclosure and placement location


 Newspaper designated by the Company for information
                                                              Shanghai Securities News, Hong Kong Wen Wei Po
 disclosure

 Website designated by China Securities Regulatory
 Commission (CSRC) for publishing the annual report of the    www.sse.com.cn
 Company

 Placement location of the annual report of the Company       Securities Affairs Office




                                                                                                               5
5.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                          -



6.Other relevant information


                               Name                                    Ernst & Young LLP.
     Public accounting
                                                                       Room 01-12, Floor 17th, Ernst & Young Tower Oriental Plaza, No.1
    firm engaged by the        Office address
                                                                       East Changan Street, Dongcheng District, Beijing
    Company (domestic)
                               Signed by the Accountants               Yang Lei, Liu Wei


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

     (I) Main accounting data
                                                                                                                    Unit: Yuan Currency: RMB

                                                                                                            Year-on-year
                     Main accounting data                              2018                  2017                                   2016
                                                                                                             change (%)

Operating revenue                                                21,812,389,644      21,858,814,000                  -0.21     24,348,087,928

Net profit attributable to the shareholders of the listed
                                                                   443,005,092             300,195,422               47.57       212,419,946
company

Net profit attributable to the shareholders of the listed
                                                                   121,335,528             277,837,568              -56.33       157,445,435
company after deducting the non-recurring profits and losses

Net cash flows from operating activities                           553,943,979           1,332,209,274              -58.42      1,658,422,636

                                                                  At the end of          At the end of      Year-on-year       At the end of
                                                                      2018                   2017            change (%)            2016

Net assets attributable to the shareholders of the listed
                                                                 15,185,861,952          15,011,306,366               1.16     15,196,736,263
company

Total assets                                                     70,598,364,627      67,519,953,829                   4.56     60,823,819,098



     (II) Major financial indexes

                 Major financial indexes                    2018              2017              Year-on-year change (%)             2016

Basic earnings per share (Yuan/share)                          0.084          0.057                                   47.37          0.040

Diluted earnings per share (Yuan/share)                        0.084          0.057                                   47.37          0.040

Basic earnings per share after deducting non-
                                                               0.023          0.053                                  -56.60          0.030
recurring profits and losses (Yuan/share)

Weighted average ROE (%)                                        2.92              1.99                                +0.93           1.41

Weighted average ROE after deducting non-recurring
                                                                0.80              1.84                                 -1.04          1.05
gains and losses (%)



6
     Notes to the main accounting data and financial indexes in the past 3 years before the end of the reporting period
     √Applicable □Not applicable
     In this year, the Company adopted the profit distribution plan for 2017. Based on the total shares of the Company by
Dec. 31, 2017, 2 shares per 10 shares were transferred to all of the shareholders with the capital public reserves and the
total shares after transfer were 5,268,353,501 shares. According to the related rules, the Company recalculated the basic
EPS, diluted EPS and EPS after deducting the non-recurring profits and losses in 2016 and 2017.

8.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
statement synchronously disclosed under the international and national accounting standards
     □Applicable √Not applicable
     (II) 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 standards
     □Applicable √Not applicable
     (III) Explanation for differences between the domestic and overseas accounting standards:
     □Applicable √Not applicable

9.Main financial data in 2018 by quarters
                                                                                                          Unit: Yuan Currency: RMB

                                                                          Q1               Q2                Q3               Q4
                                                                     (Jan. to Mar.)   (Apr. to Jun.)   (Jul. to Sep.)   (Oct. to Dec.)

 Operating revenue                                                   4,689,586,634    5,382,013,297    4,717,407,673    7,023,382,040

 Net profit attributable to the shareholders of the listed Company      83,590,257       78,528,509       32,811,152     248,075,174

 Net profit attributable to the shareholders of the listed company
                                                                        72,514,677       49,272,456        1,447,664       -1,899,269
 after deducting the non-recurring profits and losses

 Net cash flows from operating activities                               20,699,815       30,107,603      73,165,300      429,971,261


    Notes to differences between the quarterly data and the data in periodically disclosed reports
    □Applicable √Not applicable




                                                                                                                                         7
10.Non-recurring profit and loss items and amount
       √Applicable □Not applicable
                                                                                                                           Unit: Yuan Currency: RMB

                                                                                                          Note          Amount in         Amount in
                    Non-recurring profit and loss items                          Amount in 2018
                                                                                                     (if applicable)      2017              2016

    Profit or loss from disposal of non-current assets                              155,557,716                          13,285,984         1,340,612

    Tax refunds, exemptions and reductions with ultra vires approval or
    without official approval documents

    Government grants included in current profits and losses except
    for government grants closely related to the Company business,
                                                                                     114,412,517                         83,502,544        45,042,910
    in line with national policies and obtained by quota or quantity at
    unified state standards

    Current net profit or loss of the subsidiary generated from the
    business combination under common control from the beginning of                                                                  0                0
    the period to the combination date

    Profit 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,
                                                                                      74,200,750                         20,563,270        23,420,959
    financial liabilities held for trading and available-for-sale financial
    assets, except for effective hedging operations associated with the
    company's normal operations

    Reversal of provision for impairment of receivables subject to
                                                                                    150,327,138
    separate impairment test

    Other non-operating revenue and expenses except for the
                                                                                     -67,069,856                        -70,077,032         6,435,660
    aforementioned items

    Affected amount of minority equit                                                -30,908,588                        -14,565,022         -6,708,080

    Amount affected by income tax                                                    -74,850,113                        -10,351,890       -14,557,550

    Total                                                                           321,669,564                          22,357,854        54,974,511


11.Items measured at fair value
       √Applicable □Not applicable
                                                                                                                           Unit: Yuan Currency: RMB

                                                                                                                                          Impact on
                                 Item                                  Opening balance        Closing balance          Changes
                                                                                                                                         current profit

    Financial assets held for trading equity instrument
                                                                                 8,438,278           8,438,278                   0                   0
    investment

    Financial assets held for trading derivative financial assets                        0          44,481,806         44,481,806         44,481,806

    Available-for-sale equity instrument - Jiangxi Huawu                       178,952,712         102,163,301         -76,789,411            667,732

    Available-for-sale equity instrument - Qingdao Port                        451,528,660         476,713,253         25,184,593                    0

    Available-for-sale equity instrument - CRSC                                629,554,373         591,773,048         -37,781,325        18,459,450

    Available-for-sale equity instrument - Shenwan Hongyuan                      1,174,000            889,792            -284,208              17,465

    Total                                                                     1,269,648,023    1,224,459,478           -45,188,545        63,626,453


12.Others
       □Applicable √Not applicable


8
Section III                     Business Profile


I. Main business, business model of the Company and the industrial profile during the reporting period
     The Company is a famous heavy-duty equipment manufacturer, and a state-owned company listed on A and B shares,
with the headquarters in Shanghai and 10 production bases in Shanghai and Nantong. Since 1998, the Company has been
keeping its industrial position in the market of global container crane with largest occupation ratio since 1998. In recent years,
while continuously tamping the competitive advantages in the related business of the port machinery, it has been actively
expanding various business such as ocean engineering, steel structure, general contracting of system, electrical equipment,
shipping, integrated service and investment. The Company combines its own development with the national strategy and
actively strive for a new growth space in the field of intelligent industry, civil-military integration, livelihood consumption and
digitalized industry.
     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 self-produced crane; sales of the products made by
the 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. (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).

II. Explanation for major changes in prime assets of the Company during the reporting period
    □Applicable √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.




                                                                                                                                 9
Section IV                           Discussion and Analysis of the Performance


I. Discussion and analysis of the performance
     In 2018, confronted with the challenges from many adverse factors such as slowdown of the global economic growth
speed and increase in trade friction among the regions and areas, guided with the development strategy of “One Entity and
Two Wings”, the Board of Directors and management team of the Company led all of the employees to persist in the overall
working keynote of “making progress while remaining stable” and the new development concept, adhere to accelerating the
high quality development, facilitate the new layout for the business development, devote themselves to the new reform in
production and management, deepen the scientific and technological innovation to strengthen the advantage, excite the new
driving force for operation and management, coordinate the internal and external forces to achieve the joint development and
successfully achieved the moderate development of the Company.
     During the reporting period, the business sectors had grown in order, the business of port machinery had had powerful
strength, the products had successfully entered the 101 st country and region and the value of the newly concluded
contracts had stably increased. The order receiving capability for the ocean engineering had remarkably upgraded and new
achievements had been made in R &D and market expansion of the core parts and components for the ocean engineering.
The investment had been stably accelerated. The shipping business had made a breakthrough and obtained the general
contracting for the construction of the first offshore wind farm. The electrical business had made great achievements in many
aspects and the brand of photovoltaic industry was granted “The First Brand of Distributed Photovoltaic System Integration”.
The integrated business paid attention to the development and accomplished the heightening and modification works of
about 100 shore bridges, the general contracting was in good condition and the general contracting for electromechanical
engineering was launched at the international dock for the first time.

II. Performance during the reporting period
      During the reporting period, the Company realized the operating income of RMB 21.812 billion Yuan, which kept balance
basically year on year; the total profit was RMB 0.537 billion Yuan, with a year-on-year increase by 27.34%; the net profit
attributable to the owner of the parent company was RMB 0.443 billion Yuan, with a year-on-year increase by 47.57%.

1.Analysis of the performance
     1. Analysis table of changes in the related items in profit statement and cash flow statement
                                                                                                     Unit: Yuan Currency: RMB

                                                                                            Amount in the
                                                                           Amount in
                                     Item                                                   same period of      Change (%)
                                                                         current period
                                                                                             the last year

 Operating revenue                                                      21,812,389,644     21,858,814,000           -0.21

 Operating cost                                                         18,082,285,752     18,019,075,299            0.35

 Selling and distribution expenses                                         115,541,161        121,457,892           -4.87

 General and administrative expenses                                     1,142,337,348      1,039,774,787            9.86

 Financial expenses                                                      1,522,264,813        758,201,305          100.77

 Net cash flow from operating activities                                   553,943,979      1,332,209,274          -58.42

 Net cash flow from investing activities                                -2,779,460,550      -1,681,611,030          65.29

 Net cash flow from financing activities                                  -408,453,790      2,576,865,754         -115.85




10
    2. Analysis of income and cost
    √Applicable □Not applicable
    The increase in the management expenses was mainly caused by the increase in the salary of the employees in this
Company.
    The increase in the financial cost was mainly caused by the interest exchange of the Company and the increase in the
exchange loss caused by the fluctuation in exchange of CNY: USD.
    The change in net cash flows from operating activities was mainly caused by the increase in the payment for the
commodities purchased and the labor services.
    The change in net cash flows from investing activities was mainly caused by the increase in the cash paid for purchase
and construction of fixed assets of the Company.
    The change in the net cash flow from financing activities was mainly caused by the increase in the repayment of loans
from bank by the Company.

    (1) Main businesses by sectors, products and regions
                                                                                                       Unit: Yuan Currency: RMB

                                                    Main business by products

                                                                        Year-on-      Year-on-year
                       Operating                        Gross profit   year change      change in      Year-on-year change in
     Product                           Operating cost
                        income                            rate (%)     in operating   operating cost    gross profit rate (%)
                                                                       income (%)          (%)
Port machinery        14,983,974,898 11,405,896,707         23.88           1.68           -0.75               +1.87
Heavy-duty
                       2,746,107,406    2,608,895,653        5.00         -18.87          -15.41               -3.89
equipment
Steel structure and
                       1,558,778,586    1,656,155,935       -6.25           2.54           11.34               -8.39
related income
Building-transfer
                       1,221,194,799    1,226,872,864       -0.46         -21.20          -20.77               -0.54
projects
Marine transport
                       1,071,458,397    1,042,254,342        2.73         137.53          270.12               -34.84
and others




                                                                                                                                11
                                                          Main business by regions

                                                                                  Year-on-year        Year-on-year                Year-on-year
                         Operating                                Gross profit
         Region                            Operating cost                      change in operating change in operating           change in gross
                          income                                    rate (%)
                                                                                   income (%)           cost (%)                  profit rate (%)
Chinese Mainland        10,042,507,059         10,015,152,441         0.27               -0.98                   6.18                   -6.73
Asia (excluding
                         4,204,353,552          2,516,316,271        40.15             -22.29                  -38.28                 +15.51
Chinese Mainland)
North America            2,029,837,441          1,695,912,260        16.45              19.18                   26.27                   -4.70
South America            1,040,540,883           608,903,110         41.48              23.07                   17.76                  +2.64
Europe                   1,560,574,842          1,277,580,562        18.13             237.34                 533.94                  -38.30
Mainland China
                           664,121,407           285,134,594         57.07             -51.62                  -75.05                 +40.32
(export sales)
Africa                   1,508,172,239          1,119,387,335        25.78                8.90                  21.56                   -7.73
Oceania                    531,406,663           421,688,928         20.65              65.72                   62.72                  +1.46


     Notes to the main business by sectors, products and regions
     √Applicable □Not applicable
     Note 1: The amount listed in “Chinese Mainland (export sales)” in “Main business by regions” was the main operation
income from the export sales of this Company to the overseas subsidiaries or the related parties of the Company and then
sales to the related projects of the domestic customers.
     Note 2: The Company expanded the business in Europe in this year, resulting in the corresponding rise in income and
cost.

    (2) Analysis table of cost-volume-profit relationship
    □Applicable √Not applicable
    The Company mainly manufactures and sells the large-sized port equipment, heavy-duty equipment and fabricated
steel structure and the “Accounting Standards- Construction Contract” is applicable to recognize the income as per the
percentage-of-completion method. So this table is not applicable.

     (3) Cost analysis table
                                                                                                                                            Unit: Yuan

                                                                    By products

                                                                    Proportion                       Proportion of the one
                                                                                   Amount in the
                                                   Amount in       in total cost                     in the same period of Year-on-year
        Product      Items of cost structure                                       same period of                                             Notes
                                                 current period     in current                       the last year in total   change (%)
                                                                                    the last year
                                                                    period (%)                             cost (%)
                    Raw material cost, labor
Port machinery                                   11,405,896,707           63.58    11,492,182,908                     64.23         -0.75       None
                    cost and production cost
Heavy-duty          Raw material cost, labor
                                                  2,608,895,653           14.54      3,084,117,712                    17.24        -15.41       None
equipment           cost and production cost
Building-transfer   Raw material cost, labor
                                                  1,226,872,864            6.84     1,548,520,638                      8.65        -20.77       None
projects            cost and production cost
                    Raw material cost, labor
Steel structure                                   1,656,155,935            9.23     1,487,522,614                      8.31         11.34       None
                    cost and production cost
Marine transport    Raw material cost, labor
                                                  1,042,254,342            5.81       281,599,002                      1.57       270.12        None
and others          cost and production cost
Total                                            17,940,075,501         100.00     17,893,942,874                   100.00          0.26




12
    Other information about cost analysis
    □Applicable √Not applicable

     (4) Particulars about main customers and suppliers
     √Applicable □Not applicable
     The sales volume of Top 5 customers was RMB 2.71961 billion Yuan, accounting for 12% of total annual sales volume;
the sales volume of the related parties in that of Top 5 customers was RMB 0.50296 billion Yuan, accounting for 2% of total
annual sales volume.

      The purchase amount of Top 5 suppliers was RMB 2.85966 billion Yuan, accounting for 12% of total annual purchase
amount; the purchase of the related parties in that of Top 5 suppliers was RMB 0.43549 billion Yuan, accounting for 2% of
total annual purchase amount.

    3. Expenses
    √Applicable □Not applicable
    The financial cost of the Company in 2018 was RMB 1,522,264,813 Yuan, with a year-on-year increase by 100.77%,
which was mainly caused by the increase in the interest expenditure and exchange loss caused by the fluctuation in
exchange of CNY: USD.

    4. Investment in R&D
    Detail table of investment in R&D
    √Applicable □Not applicable
                                                                                                                  Unit: Yuan

 Current expensed investment in R&D                                                     672,614,073

 Current capitalized investment in R&D                                                   39,298,740

 Total investment in R&D                                                                711,912,813

 Proportion of total investment in R&D in operating income (%)                                 3.26

 Number of R&D employees in the Company                                                       1,600

 Proportion of number of R&D employees in the total                                           18.19
 employees of the Company (%)

 Proportion of capitalized investment in R&D (%)                                               5.52


    Explanation
    □Applicable √Not applicable

    5.Cash flow
     √Applicable □Not applicable
     The net cash flow from operating activities was RMB 0.554 billion Yuan, mainly caused by the increase in payment
for goods and the labor services purchased. The net cash flow from the investment activities was RMB -2.779 billion Yuan,
mainly caused by the increase in cash payment for purchase and construction of fixed assets of the Company. The net cash
flow from the financing activities was RMB -0.408 billion Yuan, mainly caused by the increase in the repayment of bank loans
by the Company.




                                                                                                                         13
2.Explanation for the significant changes in profits due to non-main business
     □Applicable √Not applicable

3.Analysis of assets and liabilities
     √Applicable □Not applicable
     1.Assets and liabilities
                                                                                                                           Unit: Yuan


                                                         Proportion                     Proportion of the       Year-
                                     Closing balance                  Closing balance
                Item                                       in total                      closing balance       on-year      Notes
                                     of current period                 of last period
                                                         assets (%)                     in the total assets   change (%)


 Monetary funds                        3,697,338,708           5.24     5,770,227,369                 8.55        -35.92


 Financial assets measured at fair
 value through current profit or          52,920,084           0.07         8,438,278                 0.01        527.14
 loss

 Advances to suppliers                 1,681,187,715           2.38     1,036,783,170                 1.54         62.15

 Non-current assets maturing
                                         894,638,424           1.27     1,896,475,472                 2.81        -52.83
 within one year

 Other current assets                  1,152,476,439           1.63       591,311,853                 0.88         94.90

 Construction in progress              3,050,468,292           4.32     1,889,146,009                 2.80         61.47

 Short-term borrowings                16,554,687,487          23.45    25,468,980,401               37.72         -35.00

 Non-current liabilities maturing
                                       4,209,532,510           5.96     2,198,931,219                 3.26         91.44
 within one year

 Long-term borrowings                 15,097,725,259          21.39     6,664,914,383                 9.87        126.53

 Other non-current liabilities           288,474,696           0.41       152,954,098                 0.23         88.60


     Other information
     The decrease in the monetary fund was mainly caused by the increase in the disbursement of the monetary fund for
production and manufacture of the newly-commenced projects, payment for materials and repayment for the loans from the
banks.
     The increase in the financial assets measured at fair value with changes included in the current profits and losses was
mainly attributed to the increase in the fair value of the contracts on forward exchange futures purchased by the Company.
     The increase in the prepayment was mainly caused by the increase in the payment for purchase and production of the
productive goods for the newly-commenced projects of the Company.
     The decrease in non-current assets due within one year was mainly caused by the decrease in long-term receivables
due within one year of the “building-transfer” project.
     The increase in other current assets was mainly caused by the increase in input tax of the deductible value-added tax of
the Company.
     The increase in the projects under construction was mainly caused by the increase in the large-sized mechanical
equipment and engineering equipment under construction of the Company.
     The decrease in the Short-term borrowings was mainly caused by the increase in the repayment of the Short-term
borrowings from the banks by the Company.
     The increase in the non-current liabilities due within one year was mainly caused by the increase in the Long-term
borrowings from the banks due within one year.


14
    The increase in the Long-term borrowings was mainly caused by the increase in the Long-term borrowings from the
banks by the Company.
    The increase in other non-current liabilities was mainly caused by the increase in the payable VAT of the Company.

    2. Particulars about main restricted assets by the end of the reporting period
    √Applicable □Not applicable

          Item                   Final book value                                    Reason of restriction

                                                           Special fund, letter of guarantee from the bank and guarantee fund
 Monetary fund                       548,351,336           for L/C collected from the overseas projects and deposited in the
                                                           overseas supervision account

 Fixed assets                       5,270,355,777          Collateral for loan

 Long-term receivables              3,850,867,673          Hypothecation for loan

 Total                              9,669,574,786          /



    3. Other information
    □Applicable √Not applicable

4.Analysis of operational information of the industry
      √Applicable □Not applicable
      During the reporting period, the value of newly concluded contracts by the Company on the port machinery was USD
2.652 billion, with a year-on-year increase by 5.24%. The one on marine engineering products and steel structure was USD
903 million, with a year-on-year increase by 26.47%, among which the one on steel structure was USD 320 million. As to the
investment, affected by the changes in policy for PPP project, the value of the newly concluded contracts was RMB 1.935
billion Yuan, with a year-on-year decrease by 88.33%.
      The increase in demand for the new equipment of traditional port machinery slowed down, however, the demand for
construction of the automated dock from the mass flow port both at home and abroad increased step by step. Meanwhile,
the demand for the services such as repair and maintenance and reconstruction of the port machinery rose remarkably due
to the upgrade and reconstruction of the port and the renewal of the equipment. These factors provided powerful support
for the upgrade of the mass of the port machinery business, in particular, it laid the solid foundation for the expansion of the
integrated services.
      The ocean engineering industry was slightly recovered, however, no obvious back-turn or improvement happened yet.
Due to the development of the new energy such as the shale gas, the rise in the oil price slowed down, however, the risk in
ocean engineering projects still existed in a large scale and the market outlook of the newly-built vessel was not so good and
no remarkable driving force for improvement was brought for this industry.
      The investment will pay attention to the high quality development. In this stage, the potential of investment demand
in China is still great, however, the key role of the investment shall be brought into full play. The investment field is not
confronted with the integration and reorganization and PPP project with high risk and low income is gradually suspended and
readjusted. In 2019, the investment in the capital construction is still the important driving force for the economic growth, the
urban rail transit, AI and industrial internet will be the core of the capital construction and will bring new opportunity for the
high quality development of the Company.




                                                                                                                                15
5.Analysis of investment
       1.Overall analysis of external equity investment
       √Applicable □Not applicable

Investment amount by the end of reporting period                                                                               3,990,335,314

Changes in investment amount (Yuan)                                                                                              365,660,888

Investment amount in the same period of the last year (Yuan)                                                                   3,624,674,426

Change in investment amount (%)                                                                                                            10.09


    (1) Significant equity investment
    √Applicable □Not applicable
    On June 4, 2018, the 32nd meeting of the 6th Board of Directors of the Company deliberated and approved Proposal for
Incorporating a Wholly-owned Subsidiary in Xiongan New District by the Company. The Company invested RMB 2.0 billion
Yuan to establish Xiongan Zhenhua Intelligent Industry Holding Co., Ltd (a provisional name, subject to the industrial and
commercial registration) to carry out the local related business. At present, the preparations for the incorporation are actively
being made and accelerated.

      (2) Significant non-equity investment
      □Applicable √Not applicable

      (3) Financial assets measured at fair value
      √Applicable □Not applicable
      Stock equity held in other listed companies
                                                                                                       Profit or         Changes in
                                 Initial            Initial               Final
                 Stock                                                                   Final book     loss in        owner’s equity         Accounting       Source of
Stock code                     investment     shareholding           shareholding
              abbreviation                                                                 value       reporting         during the              subject          shares
                                  cost              ratio                 ratio
                                                                                                        period         reporting period
                                                                                                                                              Available-for-

300095        Huawu Stock       11,071,606                     5.9                 5.9   102,163,301      667,732           -76,789,411       sale financial   Contribution

                                                                                                                                                 assets
                                                                                                                                              Available-for-
03969                                                                                                                                                          Purchase on
              CRSC             617,854,000                     1.4                 1.4   591,773,048   18,459,450           -37,781,325       sale financial
(H-share)                                                                                                                                                         market
                                                                                                                                                 assets
                                                                                                                                              Available-for-
06198                                                                                                                                                          Purchase on
              Qingdao Port     308,515,588                    1.71                1.71   476,713,253               0        25,184,593        sale financial
(H-share)                                                                                                                                                         market
                                                                                                                                                 assets


      Stock equity held in financial enterprises

                                                                                                                     Changes in
                   Initial         Initial              Final                                   Profit or loss
     Object                                                                  Final book                             owner’s equity         Accounting         Source of
                investment      shareholding        shareholding                                in reporting
     name                                                                       value                                 during the             subject            shares
                    cost            ratio               ratio                                      period
                                                                                                                   reporting period

Shenwan                                                                                                                                   Available-for-sale
                     200,000               ﹤0.01                ﹤0.01              889,792            17,465              -284,208                           Subscription
Hongyuan                                                                                                                                   financial assets




6.Sales of significant assets and equities
      □Applicable √Not applicable




16
7.Analysis of the primary holding companies and the joint-stock companies
    √Applicable □Not applicable

                                                                                                                  Registered                       Net profit /
        Company name                                     Main product or service                                                  Assets size
                                                                                                                    capital                          (loss)

                               Operation of international offshore sea transportation; ordinary
Shanghai Zhenhua Shipping Co.,
                               cargo liner traffic in the middle and lower reaches of Yangtze River;               120,000,000     2,715,546,362     1,397,537
Ltd
                               transportation of port machinery.

Shanghai Zhenhua Port           Design, manufacturing and sales of port machinery, engineering
                                                                                                                 50,000,000HKD    11,966,123,135   -232,481,229
Machinery (Hong Kong) Co., Ltd. vessel, steel structure and other parts
                                  Sales of port loading and unloading machine, bulk cargo and
                                  container machine, port engineering vessels (including floating
Shanghai Zhenhua Heavy
                                  engineering crane), material handling mechanical products and
Industries Port Machinery                                                                                         2,184,730,000    2,373,155,162   -119,304,520
                                  parts, sales and technical services, installation and maintenance,
General Equipment Co., Ltd.
                                  technical consultation of all types of machine and equipment, key
                                  parts of the raw materials and accessories equipment.

                                  Construction and installation of large-scale port equipment,
                                  engineering vessels, offshore heavy equipment, mechanical
Shanghai Zhenhua Heavy
                                  equipment, gear box for wind power generation equipment; large-
Industries Group (Nantong)                                                                                         300,000,000     2,999,196,938    11,501,551
                                  sized reverse branch, transmission mechanism, dynamic positioning,
Transmitter Co., Ltd
                                  large-sized anchor windlass, offshore oil platform lifting device and
                                  components; design and manufacturing of the accessories.

                                  Installation of heavy port equipment, engineering vessels, heavy
Nantong Zhenghua Heavy            metal structure and its parts; manufacturing and installation of gear
Equipment Manufacturing Co.,      box, container yard crane, super heavy-duty bridge steel structure,              854,936,900     2,635,845,017     7,400,673
Ltd                               heavy marine machinery equipment; leasing of cranes; specialized
                                  contracting of steel structures etc

                                  System integration design, R&D and manufacturing of tunnel boring
                                  machine with the diameter of over 6m; system integration design,
                                  R&D and manufacturing of tunnel boring machine (TBM) with the
                                  diameter of over 5m; design, R&D and manufacturing of marine
                                  machinery and parts, cranes and parts, bridges and high damping
                                  bracket for buildings; sales of self-produced products. Whole sales
Tianhe Mechanical Equipment       and import & export business of marine machinery and parts, cranes
                                                                                                                   681,627,100     4,394,476,738    58,624,548
Manufacturing Co., Ltd of CCCC    and parts, bridges and high damping bracket for buildings (if no
                                  commodity controlled by the national trade, designed quota and
                                  license is involved, the related national rules will prevail); installation,
                                  maintenance, leasing, consulting, technical services for its self-
                                  produced products.(foreign capital proportion is less than 25%) (as
                                  for the items requiring the approval, carry out the business activities
                                  after obtaining the approval from the authorities)
Shanghai Zhenhua Heavy
Industries Qidong Marine          Machinery manufacturing                                                          303,000,000     1,970,656,133   -138,478,499
Engineering Co., Ltd
                                  Agency of international land transport, air transport, ocean
                                  shipping and domestic freight; sales of large-scale port equipment,
Shanghai Zhenhua Ocean            engineering vessel equipment and marine materials at home
                                  and abroad; construction of ocean engineering and leasing of                     100,000,000      752,902,844      3,144,709
Engineering Service Co., Ltd      engineering vessels; import and export of goods and technologies,
                                  transit trade, trade between enterprises and trade agency within the
                                  free trade zone.
Nanjing Ninggao New Channel       Engaged in the construction, investment and management of
                                                                                                                   100,000,000      652,553,954     74,107,859
Construction Co., Ltd             Nanjing-Gaochun new channel project.
Zhenhua Pufeng Wind Energy
                                  Installation of offshore wind turbine                                          16,326,531USD         5,516,448    -71,902,331
(HongKong) Co., Ltd

CCCC Financial Leasing Co., Ltd   Financing lease                                                                 5,000,000,000   31,206,826,556   351,695,926

China Communications
                                  Construction of port, waterway, highway and bridge.                            50,000,000USD      257,589,119     -35,569,034
Construction USA Inc.

CCCC Estate Yixing Co., Ltd.      Real estate development                                                          900,000,000     1,525,930,907    12,764,832




                                                                                                                                                              17
                                                                                                      Registered                     Net profit /
        Company name                               Main product or service                                           Assets size
                                                                                                        capital                        (loss)
                              Fabrication and installation of steel structure; construction of
                              the foundation for offshore wind power facilities, installation and
Jiangsu Longyuan Zhenhua
                              maintenance of equipment; construction and maintenance of                 26,000,000   2,391,840,716    25,246,738
Marine Engineering Co., Ltd
                              submarine cable system, construction of marine engineering;
                              installation and maintenance of equipment and leasing of equipment..
Greenland Heavylift
(Hongkong)                    Marine transport                                                       91,975,158USD   1,496,412,229   -60,006,966
Limited



8.Particulars about structured entities controlled by the Company
     □Applicable √Not applicable

III. Discussion and analysis of the future development of the Company
1.Industrial structure and trend
     √Applicable □Not applicable
     The market competition of the container port machinery is fierce and a large batch of container shore bridges are
confronted with the replacement in batches. Affected by the large-scale trend of the ship, the heightening and the remote
upgrade and reconstruction of the traditional docks is becoming a new market. The dock handling technique is rapidly
changing and the automation and intelligentization of the dock is the development mainstream in the future. The demand
in the global market for the bulk cargo machinery is not flourishing, the domestic market takes on the trend of low price
competition and the automation development of the bulk cargo machinery and the service market expansion are the main
direction. The price of oil and gas in the world fluctuates frequently, the uncertainty of procurement of oil/gas production
equipment is not fundamentally improved. The main development direction of the ocean engineering equipment in the future
is to persist in destocking, high-end different positioning and whole industrial chain development; the low-end capacity in
the steel structure market is excess and the competition is fierce. It is urgent for the offshore wind power market to rebuild
the competitive advantages of the Company through the industrial integration and active layout of the operation and
maintenance market. In the electric industry, the international famous electric brands occupy large market shares and high-
quality state-owned brands in intelligentization are still in cultivation. PPP project was stopped in 2018 and it is expected to
enter the standardized development channel.

2.Development strategy of the Company
     √Applicable □Not applicable
       With “equipment manufacture” as the entity, “capital operation” and “Internet” as two wings, it aims to build “Flag +
Flagship” of Chinese national industry. “One Entity and Two Wings” strategy is a new strategy for transformation and upgrade
of the Company after objectively analyzing the development stage and orientation of the Company, based on national and
industrial development trend at present and in future, around “Industry 4.0”, “Made in China 2025” and pilot reform of the
state-owned capital investment, in combination with the development features of equipment manufacturing industry. “Capital
operation” will help the Company to extend the industrial chain of the port machine business and create the whole industrial
chain of marine heavy industry and offshore wind power; help the Company and the customers as well as the partners to
form a community of a shared future with the capital as the tie. The digitized transformation and upgrade of the Company
under “Internet” can accelerate the upgrade of the information system in an all-round way and create the cloud platform
through the top information-oriented design of the Company to offer more convenient, efficient, intelligent and integrated
service to the global customers and greatly improve the management level and operation efficiency of the Company.

3.Operation plan
     √Applicable □Not applicable
     The overall working main-thread of the Company in 2019: guided by Xi Jinping’s Though on Socialist with Chinese
Characteristics for a New Era, implementing the spirits of the 19th National Congress of the Communist Party of China and
the second and third plenary session of the 19th Communist Party of China Central Committee in an all-round way, persisting
in the overall keynote of making progress while remaining stable, persisting in the new development concept, adhering to
accelerating the high quality development, abiding by the supply-side structural reform as the main-thread, sticking to the
guidance of “One Entity and Two Wings” Strategy of the Company, driven by innovation, accelerating the new layout for the



18
business development of the Company and deepening the reform in an all-round way and fully coordinating the internal and
external forces to make efforts to build a world excellent company with the international competitiveness.
      As to the port machinery sector, while the Company tamps the competitive advantages of the traditional business, it
adheres to the combination of the traditional business with the new business and persists in the unity of scale and benefit
and the double acceleration of manufacturing and service to achieve the transformation from the manufacturer to the
integrated service provider step by step. As to the ocean engineering sector, while the Company dissolves the risks of
the stocking projects, it will further sort out and optimize the development concept of the ocean engineering, optimize the
management and control mode of the ocean engineering projects and explore the building of the whole industrial chain
of the ocean engineering. As to the steel structure sector, the Company will pay great attention to the construction of the
demonstration projects and raise the benefit through optimizing the operation and management model of the project. As
to the investment business, it will rely on the good situation of the investment in capital construction in 2019, aim at the
opportunity of the regional construction in China including Xiongan, Hainan and Fuzhou, bring into play of the capital around
the main business and carry out the investment projects helpful to make up the short plate of the business or expand the
industrial chain in good time. As to the shipping business, it will seize the opportunity of the construction of offshore wind
farm at home and abroad, integrate the industrial resources, vigorously expand the business of the high-end transportation
and installation, installation of the offshore wind power facilities and the platform disassembly. As to the electrical business,
it will concentrate the forces, adopt the targeted steps to continually accumulate the experience in the projects and quicken
the independent development of its own brand EZ. As to the integrated service, it will further explore the actual demands of
the existing and potential customers, enhance the relationships with the major customers, improve the service quality and
accelerate the joint-win of both parties. As to the general contracting of the system, it will optimize the project management
model and accelerate the implementation of more subsequent projects based on the existing advantages.

4.Potential risks
      √Applicable □Not applicable
      Market risk: the growth force of the world economy is weakened, the increase in the international trade slows down,
the price of the bulk commodities drops much, the trade friction between China and USA and the challenges from the
deglobalization trend on the global economy impose some uncertainties upon the development of the Company. The market
competition of the container port machinery is still fierce, the ocean engineering industry is slightly resuscitative, but the sign
of reverse turnaround and upgrade is not so remarkable. Other new businesses are still in the infant stage.
      Countermeasures: the Company will study and determine the current political and economic situation in depth, highly
concern the market change and carry out the benchmarking management like the high quality companies in the same
industry, deepen the reform, tamp the basic management, enhance the risk resistivity, optimize and adjust the market and
business structure, seek for increment from the strategic opportunity, business expansion, internal and external cooperation,
investment, acquisition and overseas projects, accelerate the structural readjustment and resources integration and
accelerate the sustainable development of the enterprise through the transformation and upgrade.
      Financial risk: it mainly includes credit risk and exchange rate risk, especially the large scale of interest-bearing
liabilities. CNY bears a certain depreciation press and imposes some risks upon the overseas operation.
      Countermeasures: Lock in the forward exchange rate through rational planning, control exchange rate risks, gradually
reduce the foreign exchange liabilities, pay attention to the research on policies and strategies of foreign exchange risk
management, closely concern the changes in exchange rates, regularly analyze the trend of exchange rate, strictly conduct
the approval procedure related to the transaction of the financial derivatives, do well in statistics of the products, currencies
and exchange rates, further tamp the basic work of the foreign exchange management and reduce the Company’s exchange
rate risk. By arranging favorable settlement terms in the contract (for example, concluding with a RMB exchange rate
linkage, and the increase in the proportion of prepayments and settlement of exchange as early as possible), or control and
lock in the exchange rate risks with proper financial instruments or means.
      As to credit risk, reduce raw material reserves, cut down the capital expenditure, adjust the Company’s debt structure
in many ways (such as medium-term notes, short-term financing bond, perpetual bond), strengthen the collection of the
account receivable, reduce the amount of bank debt step by step and reduce the business risks of the enterprise.

5.Others
    □Applicable √Not applicable

IV. Explanation for non-disclosure in accordance with the accounting standard due to being not applicable to the
provisions of the standard or state secret and business secrete and other special reasons
    □Applicable √Not applicable



                                                                                                                                19
Section V                        Important Events


I. Proposal for profit distribution of ordinary shares or converting capital reserve to bonus shares
1.Formulation, implementation or adjustment of cash dividend distribution policies
       √Applicable □Not applicable
       According to the requirements of CSRC Notification on Further Implementation of Relevant Matters Concerning
Cash Dividend Distribution of Listed Companies (ZJF [2012] No. 37), as proposed by the 10th meeting of the Company’s
fifth session of Board held on August 21, 2012, 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 standard and proportion
became clearer, related decision making process and mechanism were compete, and the minority shareholders’ legal rights
and interests were fully protected, giving them the opportunity to fully express their views and demands.


2.The Company’s plan or proposal for profit distribution of ordinary shares, plan or proposal for converting capital
reserve to bonus shares in recent 3 years (including the reporting period)
                                                                                                                Unit: Yuan Currency: RMB

                                                                                      Net profit attributable
                                                                                                                   Ratio of the net profit
                   Bonus                                                                 to the ordinary
                                 Dividend for         Shares                                                        attributable to the
     Year for      shares                                            Amount of        shareholders of the
                                every 10 shares    converted for                                                  ordinary shareholders
     dividend     for every                                         cash dividend    listed company in the
                                  (Yuan) (tax     every 10 shares                                                 of the listed Company
 distribution     10 shares                                         (tax included)   consolidated statement
                                   included)          (share)                                                       in the consolidated
                   (share)                                                           in the year for dividend
                                                                                                                      statements (%)
                                                                                           distribution

      2018            0                0.5              0           263,417,675           443,005,092                      59.46

      2017            0                0.5              2           219,514,729           300,195,422                      73.12

      2016            0                1                0           439,029,458           212,419,946                     206.68


      Note: it was proposed by the board of directors of the Company that the cash dividends in 2018 adopted the continuous
and stable profit distribution policy. Based on the total capital shares of 5,268,353,501 shares as the basic number by Dec.
31, 2018, RMB 0.5 Yuan (including tax) per 10 shares as the cash dividend from the undistributed profit by Dec. 31, 2018 is
distributed to all of the shareholders, with the total of the cash dividend to be distributed of RMB 263,417,675.05 Yuan. The
Company will not distribute the bonus share or convert the capital reserves to the bonus shares. The annual profit distribution
plan for 2018 is just a proposal and the opinions have been released by the independent directors of the Company and the
plan is subject to the approval of the general meeting of shareholders in 2018.

3.Shares repurchased by offer in cash and included in cash dividends
       □Applicable √Not applicable

4.If the profit is positive in the reporting period and the profit of the parent company available for distribution to the
ordinary shareholders is positive but the Company does not represent the plan or proposal for profit distribution
of ordinary shares in cash, the Company shall disclose in detail the reasons and the purpose and use plan of the
undistributed profit
       □Applicable √Not applicable




20
II.Fulfillment of commitments
1.Commitments of the actual controller, shareholders, related parties, acquirer, the Company and other commitment
makers in the reporting period or ongoing at the period-end
     □Applicable √Not applicable

2.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 assets or project reaches the original earnings
forecast and give the reasons
     □Reached □Failing to reach √Not applicable

3.Fulfillment of commitments on the performance and its impacts on goodwill impairment test
     □Applicable √Not applicable

III. Fund occupation and progress in returning scheme during the reporting period
     □Applicable √Not applicable

IV. Explanation of the Company for Accounting Firm’s “audit report with nonstandard 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
1.Analysis and explanation of the Company on the causes and the impacts of the changes in accounting policies
and accounting estimates
      √Applicable □Not applicable
      1. Changes in the presentation of financial statement
      In accordance with the requirements of Notice on Revising and Issuing the Format of Financial Statements for General
Enterprises in 2018 (No. CK[2018] 15), in the balance sheet, “notes receivable” and “accounts receivable” were consolidated
into the newly increased item of “notes and accounts receivable”; “interests receivable” and “dividends receivables” were
consolidated into the item of “other receivables”; “liquidation of fixed assets” was consolidated into the item of “fixed assets”;
“notes payable” and “accounts payable” were consolidated into and listed in “notes and accounts payable”; “interests
payable” and “dividends payable” were consolidated into the item of “other payables”. In the profit statement, the newly
increased item of “expenses for R&D” was included the expensed expenditure in the process of R&D, the item of “financial
cost” was split into the item of “interest charges” and “interest income”; this group correspondingly backdated and adjusted
the comparative data including: interest expenses” and “interest income” were newly added under the item of Financial cost
in income statement. The comparative data were adjusted accordingly. The change in the accounting policy had no impact
on the net profit of the Company and the stockholder's equity.

2.Analysis and explanation of the cause of correction of significant accounting errors and their impacts by the
Company
     □Applicable √Not applicable

3.Communication with former CPA firm
     □Applicable √Not applicable

4.Other information
     □Applicable √Not applicable




                                                                                                                                     21
VI. Engagement and dismissal of the public accounting firm
                                                                                                              Unit: Yuan Currency: RMB

                                                                                             Now engaging

 Name of the domestic accounting firm                                        Ernst & Young LLP. (Special General Partnership)

 Remuneration of domestic accounting firm                                                         4,500,000

 Audit term of the domestic accounting firm                                                               3

                                                                          Name                                  Remuneration

 Accounting firm performing internal control audit   Ernst & Young LLP. (Special General Partnership)              400,000


     Particulars about the engagement and dismissal of the accounting firm
     □Applicable √Not applicable

     Particulars about reappointment of the accounting firm in the auditing period
     □Applicable √Not applicable

VII. Risk of suspension of the listing
1.Cause for shares suspended from listing
     □Applicable √Not applicable

2.Countermeasures to be taken by the Company
     □Applicable √Not applicable

VIII. Termination of the listing and its reasons
     □Applicable √Not applicable

IX. Events related to bankruptcy and reorganization
     □Applicable √Not applicable

X. Major lawsuit and arbitration issues
    □Existence major lawsuit and arbitration in the year √No major lawsuit or arbitration in this year
1.Lawsuit and arbitration already disclosed in provisional announcement, without follow-up progress
     □Applicable √Not applicable




22
2.Lawsuit and arbitration not disclosed in provisional announcement, or with follow-up progress
       √Applicable □Not applicable
                                                                                                                                                                                       Unit: Yuan Currency: RMB

In the reporting period:

                                                                                                                                    Expected
                                                                                                                                     liabilities
                              Party                                                                                  Amount                                                                     Results of
                                           Type of                                                                                 and amount                                                                    Execution of
  Plaintiff     Defendant   bearing                                                                                 involved                              Progress in lawsuit                  the lawsuit
                                         lawsuit and         Background of the lawsuit (arbitration)                                  caused                                                                    adjudication of
(applicant)   (respondent)    joint                                                                                in lawsuit                                (arbitration)                  (arbitration) and
                                          arbitration                                                                               by lawsuit                                                                lawsuit (arbitration)
                           liabilities                                                                            (arbitration)                                                                  impacts
                                                                                                                                   (arbitration)
                                                                                                                                       or not

                                                        In 2008, the Company and Fluor Limited (hereinafter
                                                        referred to as “Fluor”) signed an agreement on
                                                                                                                                                                                                             On Jan. 11, 2018,
                                                        sales and installation of steel pipe pile products for
                                                                                                                                                                                                             the court made
                                                        the wind power generation of British Wind Power
                                                                                                                                                                                                             quantized partial
                                                        Project. In the process of the project construction,
                                                                                                                                                                                                             judgment on this
                                                        based on the cooperative spirits of friendly
                                                                                                                                                                                                             case and adjudicated
                                                        negotiation, the Company and Fluor maintained
                                                                                                                                                                                                             this Company to
                                                        the normal dispute settlement and communication
                                                                                                                                                                                                             pay 5,893,591 U.S.
                                                        mechanism. In 2010, as for the issues in contract
                                                                                                                                                                                                             dollars, 15,033,681
                                                        execution process, after reviewed by the board of
                                                                                                                                                                                                             pounds, 7,165,740
                                                        directors of the Company, the Company signed a
                                                                                                                                                                                                             Eurodollars, 7,259
                                                        mutual exemption letter with Fluor, and settled the                                                                                 On Jan. 11,
                                                                                                                                                                                                             Canadian dollars and
                                                        remaining payment in 2011. Afterwards, Fluor lodged                                                                                 2018, the court
                                                                                                                                                                                                             RMB 485,346 Yuan
                                                        a quality claim against the Company, and requested                                                                                  made quantized
                                                                                                                                                                                                             to Fluor. On Mar.
                                                        the payment of the demand quality guarantee issued                                                                                  partial judgment
                                                                                                                                                                                                             16, 2018, the court
                                                        by the Company, while the Company rejected the                                                                                      on this case
                                                                                                                                                                                                             made the judgment
                                                        claim. On March 20, 2014, Fluor cashed the above                                                                                    and made the
                                                                                                                                                                                                             on the interest and
                                                        letter of guarantee with the amount of 23,409,750                                                                                   written judgment
              Shanghai                                                                                                                                                                                       adjudicated this
                                                        EUR in the bank opening the letter of guarantee.                                                                                    on the interest
              Zhenhua                                                                                                                                                                                        Company to pay
                                                        In September 2014, Fluor initiated proceedings for                                                                                  and the legal
Fluor         Heavy                                                                                            About 250 million                                                                             3,518,549 pounds
                              None         Lawsuit      the breach attributed to the problems related to the                            0          The case had been settled.               expenses in Mar.
Corporation   Industries                                                                                       pounds                                                                                        to Fluor. On Mar. 26
                                                        product quality to High Court of Justice, Queen’s                                                                                  and Apr. 2018
              (Group) Co.,                                                                                                                                                                                   and Apr. 11, 2018,
                                                        Bench Division, the Technology and Construction                                                                                     respectively.
              Ltd                                                                                                                                                                                            the court made the
                                                        Court (hereinafter referred to as “TCC Court of                                                                                    Both parties
                                                                                                                                                                                                             judgment on the
                                                        Britain Queen’s Bench”) and asked the Company                                                                                     signed the
                                                                                                                                                                                                             legal expenses and
                                                        for the total compensation of 250 million pounds                                                                                    reconciliation
                                                                                                                                                                                                             adjudicated this
                                                        for additional test and repair cost, construction                                                                                   agreement in
                                                                                                                                                                                                             Company to pay
                                                        duration delay and other related loss (including the                                                                                May 2018 and
                                                                                                                                                                                                             6,000,000 pounds
                                                        cashed letter of guarantee amount of 23,409,750                                                                                     this case was
                                                                                                                                                                                                             and 1,500,000
                                                        EUR). The Company didn’t acknowledge the claim                                                                                     settled.
                                                                                                                                                                                                             pounds to Fluor.
                                                        for the compensation from Fluor. Since then, the
                                                                                                                                                                                                             On May 9, 2018,
                                                        Company prepared the evidence disclosure, witness
                                                                                                                                                                                                             both parties signed
                                                        testimony, exchange work and other preparatory
                                                                                                                                                                                                             the reconciliation
                                                        work before the court session was opened. In
                                                                                                                                                                                                             agreement and
                                                        February, March, April, June of 2016, British High
                                                                                                                                                                                                             this Company
                                                        Court TCC court was in trial for first instance on
                                                                                                                                                                                                             paid 523219.24
                                                        obligation part. In May 2017, the trial of quantized
                                                                                                                                                                                                             pounds to Fluor as
                                                        part of this case was conducted. In July 2017, both
                                                                                                                                                                                                             the reconciliation
                                                        parties exchanged the written final address. In Aug.
                                                                                                                                                                                                             expenses.
                                                        2017, the proceeding at law for the quantized part of
                                                        this case was settled.

                                                                                                                                                   It was planned to open the court
                                                                                                                                                   session in Mar. 2019. In order to
                                                                                                                                                   settle the disputes and reduce
                                                                                                                                                   the losses, both parties kept
                                                                                                                                                   the communication and made
                                                                                                                                                   efforts to seek for the acceptable
                                                                                                                                                   dispute settlement methods.
                                                                                                                                                   Through rounds of negotiation,
                                                                                                                                                   both parties concluded the
                                                                                                                                                   reconciliation scheme regarding
                                                                                                                                                   the joint shipbuilding and reached
                                                        In 2013, the Company had signed the contract                                               an agreement on the details.
                                                        on construction and sales of a 6000 t pipe-laying                                          Approved by the resolution of the
                                                        vessel with Petrofac Limited (hereinafter referred to                                      30th meeting of the 6th session of
                                                        as Petrofac). On Oct. 9, 2015, in the construction                                         Board of Directors of the Company,
                                                        process of the project, Petrofac issued Contract                                           the Company has signed an
                                                        Termination Letter due to the delay in the project.                                        agreement with Petrofac and it will
                                                        Petrofac asked the Company to terminate the                                                purchase the related project assets
                                                        contract and requested the Company to return                                               at the contract price such as the
                                                                                                                This Company                                                                Both parties
                                                        the prepaid payment and interest. The Company                                              equipment such as J-Lay Tower
                                                                                                                stood for about                                                             applied for
Shanghai                                                rejected the claim. Petrofac honored the demand                                            (OFE equipment) purchased by
                                                                                                                200 million                                                                 terminating
Zhenhua                                                 guarantee from the opening bank in December                                                Petrofac, technical documents and
                                                                                                                USD; Petrofac's                                                             the arbitration
Heavy        Petrofac                                   2015, with total amount of 44,720,000 USD. Thus,                                           the patents so as to continue the
                              None       Arbitration                                                            counterclaim was        0                                                   and received      Not applicable
Industries   (ship-owner)                               the Company employed the professional lawyer and                                           construction of the vessel. Petrofac
                                                                                                                182 million USD                                                             the notice of
(Group) Co.,                                            expert team both at home and abroad to apply for                                           will provide the technical support
                                                                                                                or 213 million                                                              arbitration
Ltd                                                     arbitration to the London International Arbitration                                        in the process of construction and
                                                                                                                USD in two                                                                  termination on
                                                        Court in January 2016 and asked Petrofac to                                                possess 10% of the stock equity of
                                                                                                                different ways.                                                             May 29, 2018.
                                                        return the payment of Letter of Guarantee and                                              the single-vessel company after the
                                                        compensated for the corresponding loss of                                                  vessel is put into operation. Both
                                                        200 million USD. After receiving the arbitration                                           parties will bring into play their own
                                                        application from the Company, Petrofac filed a                                             advantages to jointly expand the
                                                        counterclaim application, and asked the Company                                            market of the vessel. Both parties
                                                        to compensate about 182 million USD or 213 million                                         agree to cancel the arbitration.
                                                        USD under the requirements of continuing or not                                            The transaction consideration was
                                                        continuing to construct the vessel.                                                        about 190,000,000 USD. After
                                                                                                                                                   counterbalance of the amount
                                                                                                                                                   of the letter of guarantee paid
                                                                                                                                                   by the Company (44,720,000
                                                                                                                                                   USD) and part of the amount
                                                                                                                                                   carried in the shipbuilding contract
                                                                                                                                                   (21,720,000 USD), the transaction
                                                                                                                                                   consideration to be paid by the
                                                                                                                                                   Company was 167,000,000 USD.
                                                                                                                                                   This transaction has no significant
                                                                                                                                                   impact on the profit in this period or
                                                                                                                                                   after the period.




                                                                                                                                                                                                                               23
In the reporting period:

                                                                                                                                       Expected
                                                                                                                                        liabilities
                              Party                                                                                  Amount                                                                   Results of
                                           Type of                                                                                    and amount                                                               Execution of
  Plaintiff     Defendant   bearing                                                                                 involved                                 Progress in lawsuit             the lawsuit
                                         lawsuit and         Background of the lawsuit (arbitration)                                     caused                                                               adjudication of
(applicant)   (respondent)    joint                                                                                in lawsuit                                   (arbitration)             (arbitration) and
                                          arbitration                                                                                  by lawsuit                                                           lawsuit (arbitration)
                           liabilities                                                                            (arbitration)                                                                impacts
                                                                                                                                      (arbitration)
                                                                                                                                          or not




                                                        At the end of February 2014, the Company
                                                        completed the acquisition of the former Jiangsu
Shanghai
                                                        Daoda Ocean Engineering Co., Ltd through capital
Zhenhua
                                                        increase and held 67% of the shares. At the same
Heavy
                                                        time, it was agreed that the losses of the company,
Indusries
                                                        was borne by the former shareholders including
(Group)
              Nantong                                   Nantong Huafu Port Co., Ltd, Li Aidong and Zhao
Co., Ltd,
              Huafu Port                                Xiaohua before February 28, 2014. During the
Shanghai                                                                                                      RMB 368.722                                                                 Not
              Co., Ltd,       None         Lawsuit      subsequent business process, it was found that the                                 0          The case is still pending.                               Not yet judged
Zhenhua                                                                                                       million Yuan                                                                yet judged
              Li Aidong,                                former Daoda Company untruthfully disclosed some
Heavy
              Zhao Xiaohua                              matters of lawsuit or debts, resulting in a series of
Industries
                                                        losses of the Company. Through the related audit
Qidong
                                                        and readjustment etc, it was deemed that the loss
Marine
                                                        of RMB 368.7222 million Yuan should be in borne
Engineering
                                                        in the former shareholders and the lawsuit was
Co., Ltd.
                                                        prosecuted again after an inconclusive press for
                                                        payment.




                                                                                                                The claim of
                                                                                                                Lovanda was
                                                        In 2014, Lovanda signed a construction contract         about USD
                                                        (ZP14-2125) on one JU2000E offshore drilling            13,800,000
                                                        platform with this Company, which was designed,         dollars. The
                                                        built, commissioned and delivered by this Company.      cross bill claim
                                                        In the construction process, some disputes arose        of this Company:
                                                        between Lovanda and this Company regarding              1) the other
                                                        the construction schedule of this platform, the         party should
                                                        extension of delivery time and other aspects.           pay the last
                                                        Lovanda submitted to arbitration to London Maritime     sum of money
                                                        Arbitrators Association against this Company on         payable under                                                              Both parties
                                                        Mar. 6, 2017 and proposed to terminate the platform     the contract                                                               had concluded
             Shanghai                                   construction contract and required this Company to      and its interest                                                           the umbrella
             Zhenhua                                    repay USD 13800000 dollars including the advance        arising herefrom,                     The arbitral tribunal signed the     reconciliation      The arbitral tribunal
Lovanda      Heavy                                      cost of construction, related expenses and interest.    totaling                              consent award according to the       agreement with      signed the consent
                              None       Arbitration                                                                                       0
Offshore Ltd Industries                                 This Company established a special working group        186,200,000                           application of both parties and then Lovansing and       award and the case
             (Group) Co.,                               and employed the professional domestic and foreign      USD to this party;                    the case was settled.                Xinyuda and         was settled.
             Ltd                                        lawyers and experts to actively respond to action to    2) the income of                                                           then applied for
                                                        maintain the legitimate right of this Company. After    this party from                                                            withdrawal of the
                                                        receiving the request for arbitration, this Company     the sale of the                                                            case.
                                                        took a cross bill application against Lovanda and       platform minus
                                                        claimed: 1) the other party should pay the last sum     the cost of sale
                                                        of money payable under the contract and its interest    should be used
                                                        arising herefrom, totaling USD 186,200,000 dollars      for deducting the
                                                        to this party; 2) the income of this party from the     account payable
                                                        sale of the platform minus the cost of sale should be   of the other party;
                                                        used for deducting the account payable of the other     3) Other losses,
                                                        party; 3) Other losses, interest and other expenses     interest and
                                                        that may occur in the future.                           other expenses
                                                                                                                that may occur in
                                                                                                                the future.


                                                                                                                The claim of
                                                                                                                Lovanda was
                                                                                                                about USD
                                                        In 2014, Lovanda signed a construction contract
                                                                                                                13,800,000
                                                        (ZP14-2126) on one JU2000E offshore drilling
                                                                                                                dollars. The
                                                        platform with this Company, which was designed,
                                                                                                                cross bill claim
                                                        built, commissioned and delivered by this Company.
                                                                                                                of this Company:
                                                        In the construction process, some disputes arose
                                                                                                                1) the other
                                                        between Lovanda and this Company regarding
                                                                                                                party should
                                                        the construction schedule of this platform, the
                                                                                                                pay the last
                                                        extension of delivery time and other aspects.
                                                                                                                sum of money
                                                        Lovanda submitted to arbitration to London Maritime
                                                                                                                payable under
                                                        Arbitrators Association against this Company on                                                                                    Both parties
                                                                                                                the contract
                                                        Mar. 6, 2017 and proposed to terminate the platform                                                                                had concluded
                                                                                                                and its interest
             Shanghai                                   construction contract and required this Company to                                                                                 the umbrella
                                                                                                                arising herefrom,
             Zhenhua                                    repay USD 13,800,000 dollars including the advance                                            The arbitral tribunal signed the     reconciliation      The arbitral tribunal
                                                                                                                totaling USD
Lovansing    Heavy                                      cost of construction, related expenses and interest.                                          consent award according to the       agreements with     signed the consent
                              None       Arbitration                                                            186,200,000                0
Offshore Ltd Industries                                 This Company established a special working group                                              application of both parties and then Lovansing and       award and the case
                                                                                                                dollars to this
             (Group) Co.,                               and employed the professional domestic and foreign                                            the case was settled.                Xinyuda and         was settled.
                                                                                                                party; 2) the
             Ltd                                        lawyers and experts to actively respond to action to                                                                               then applied for
                                                                                                                income of this
                                                        maintain the legitimate right of this Company. After                                                                               withdrawal of the
                                                                                                                party from the
                                                        receiving the request for arbitration, this Company                                                                                case.
                                                                                                                sale of the
                                                        took a cross bill application against Lovanda and
                                                                                                                platform minus
                                                        claimed: 1) the other party should pay the last sum
                                                                                                                the cost of sale
                                                        of money payable under the contract and its interest
                                                                                                                should be used
                                                        arising herefrom, totaling USD 186,200,000 dollars
                                                                                                                for deducting the
                                                        to this party; 2) the income of this party from the
                                                                                                                account payable
                                                        sale of the platform minus the cost of sale should be
                                                                                                                of the other party;
                                                        used for deducting the account payable of the other
                                                                                                                3) Other losses,
                                                        party; 3) Other losses, interest and other expenses
                                                                                                                interest and
                                                        that may occur in the future.
                                                                                                                other expenses
                                                                                                                that may occur in
                                                                                                                the future.




24
In the reporting period:

                                                                                                                                  Expected
                                                                                                                                   liabilities
                                 Party                                                                             Amount                                                                Results of
                                              Type of                                                                            and amount                                                               Execution of
  Plaintiff      Defendant     bearing                                                                            involved                              Progress in lawsuit             the lawsuit
                                            lawsuit and         Background of the lawsuit (arbitration)                             caused                                                               adjudication of
(applicant)    (respondent)      joint                                                                           in lawsuit                                (arbitration)             (arbitration) and
                                             arbitration                                                                          by lawsuit                                                           lawsuit (arbitration)
                              liabilities                                                                       (arbitration)                                                             impacts
                                                                                                                                 (arbitration)
                                                                                                                                     or not

                                                           On Jan. 28, 2014, this Company signed
                                                           Procurement Contract on Main Chord of Spud Leg
                                                           for F&G-JU2000E Self-elevating Drilling Platform
                                                           with Xinyuda Ocean Engineering (Hong Kong) Co.,
                                                           Ltd (hereinafter referred to as “Xinyuda Company”)
                                                           (Contract No.: ZP14-2125-0030, based on which
                                                           Xinyuda Company provided one set of main chord
                                                           equipment for the Zhenhai No. 5 Drilling Platform.
                                                           The product provided by Xinyuda Company had                                                                                Both parties
                                                           the quality defects and was in breach of the                                                                               had concluded       Hong Kong
                                                           requirements of the contract, as a result, the                                                                             the umbrella        International
                                                           construction schedule of Zhenhai No. 5 Drilling                                                                            reconciliation      Arbitration Centre
Shanghai                                                                                                                                         Hong Kong International Arbitration
               Xinyuda                                     Platform of this Company was seriously affected.                                                                           agreements          will issue the consent
Zhenhua                                                                                                                                          Centre agreed to issue the consent
               Ocean                                       This Company had sent many letters to request                                                                              with Lovanda        award and settle the
Heavy                                                                                                           About                            award and settle the case after
               Engineering      None        Arbitration    Xinyuda Company to settle the quality defects, but                         0                                               and Lovansing       case after receiving
Industries                                                                                                      35,250,000 USD                   receiving the supplementary cash
               (Hong Kong)                                 Xinyuda Company had not effectively responded to                                                                           and Xinyuda and     the supplementary
(Group) Co.,                                                                                                                                     deposit for the costs of arbitration
               Co., Ltd                                    them and dealt with these defects. therefore, based                                                                        then applied for    cash deposit for the
Ltd                                                                                                                                              paid by both parties.
                                                           on the dispute settlement mode stipulated by the                                                                           withdrawal of the   costs of arbitration
                                                           contract, this Company took a arbitration against                                                                          case and issued     paid by this
                                                           Xinyuda Company to Hong Kong International                                                                                 the consent         Company.
                                                           Arbitration Center on May 9, 2017 and requested                                                                            award.
                                                           Xinyuda Company to compensate this Company
                                                           for the expenses for replacement, repair, removal,
                                                           reconstruction and reinstallation of main chord,
                                                           about USD 35,250,000 dollars, and reserved the
                                                           rights of compensation for the losses caused by
                                                           the quality of the main chord under the platform
                                                           construction contract and other losses arising
                                                           herefrom.

                                                           On Jan. 28, 2014, this Company signed
                                                           Procurement Contract on Main Chord of Spud Leg
                                                           for F&G-JU2000E Self-elevating Drilling Platform
                                                           with Xinyuda Ocean Engineering (Hong Kong) Co.,
                                                           Ltd (hereinafter referred to as “Xinyuda Company”)
                                                           (Contract No.: ZP14-2126-0030, based on which
                                                           Xinyuda Company provided one set of main chord
                                                           equipment for the Zhenhai No. 6 Drilling Platform.
                                                           The product provided by Xinyuda Company had                                                                                Both parties
                                                           the quality defects and was in breach of the                                                                               had concluded       Hong Kong
                                                           requirements of the contract, as a result, the                                                                             the umbrella        International
                                                           construction schedule of Zhenhai No. 6 Drilling                                                                            reconciliation      Arbitration Centre
Shanghai                                                                                                                                         Hong Kong International Arbitration
               Xinyuda                                     Platform of this Company was seriously affected.                                                                           agreements          will issue the consent
Zhenhua                                                                                                                                          Centre agreed to issue the consent
               Ocean                                       This Company had sent many letters to request                                                                              with Lovanda        award and settle the
Heavy                                                                                                           About                            award and settle the case after
               Engineering      None        Arbitration    Xinyuda Company to settle the quality defects, but                         0                                               and Lovansing       case after receiving
Industries                                                                                                      35,250,000 USD                   receiving the supplementary cash
               (Hong Kong)                                 Xinyuda Company had not effectively responded to                                                                           and Xinyuda and     the supplementary
(Group) Co.,                                                                                                                                     deposit for the costs of arbitration
               Co., Ltd                                    them and dealt with these defects. therefore, based                                                                        then applied for    cash deposit for the
Ltd                                                                                                                                              paid by both parties.
                                                           on the dispute settlement mode stipulated by the                                                                           withdrawal of the   costs of arbitration
                                                           contract, this Company took a arbitration against                                                                          case and issued     paid by this
                                                           Xinyuda Company to Hong Kong International                                                                                 the consent         Company.
                                                           Arbitration Center on May 9, 2017 and requested                                                                            award.
                                                           Xinyuda Company to compensate this Company
                                                           for the expenses for replacement, repair, removal,
                                                           reconstruction and reinstallation of main chord,
                                                           about USD 35,250,000 dollars, and reserved the
                                                           rights of compensation for the losses caused by
                                                           the quality of the main chord under the platform
                                                           construction contract and other losses arising
                                                           herefrom.




3.Other information
       □Applicable √Not applicable

XI. Punishment to the listed Company and its directors, supervisors, senior executives, controlling shareholder,
actual controller and acquirer and the rectification
       □Applicable √Not applicable

XII. Particulars about the credit conditions of the Company and its controlling shareholder and the actual controller
during the reporting period
       □Applicable √Not applicable




                                                                                                                                                                                                                            25
XIII. The Company’s equity incentive plan, employee stock ownership plan or other incentives to the employees and
their impacts
1.Related incentives disclosed in provisional announcement, without progress or change in follow-up
implementation
     □Applicable √Not applicable

2.Incentives not disclosed in provisional announcement or with follow-up progress
     Equity incentive
     □Applicable √Not applicable
     Other information
     □Applicable √Not applicable

     Information about employee stock ownership plan
     □Applicable √Not applicable

     Other incentive measures
     □Applicable √Not applicable

XIV. Material associated transactions
1.Associated transactions related to normal business
     1. Events disclosed in provisional announcement, without progress or changes in follow-up implementation
     √Applicable □Not applicable

                                  Summary of event                                                    Query index

 The first meeting of 7th session of Board of Directors deliberated and approved      Shanghai Stock Exchange website: www.sse.
 Proposal for Joint Incorporation of Overseas Port Service Platform Company by the    com.cn, Shanghai Securities News and Hong
 Company and the Related Parties on Aug. 22, 2018.                                    Kong Wen Wei Po on Aug. 23, 2018.


     2. Events disclosed in the provisional announcement, with progress or changes in follow-up implementation
     √Applicable □Not applicable

                                  Summary of event                                                    Query index

 The 29th meeting of the 6th session of Board of Directors deliberated and approved   Shanghai Stock Exchange website: www.sse.
 Proposal for Participation in PPP Project at the Section from Yongjia Xunzhai to     com.cn and the Shanghai Securities News and
 Qiaoxia of Anji-Dongtou Highway on Feb. 2, 2018.                                     Hong Kong Wen Wei Po on Feb. 3, 2018.

 The 1st meeting of the 7th session of Board of Directors deliberated and approved
 Proposal for Joint Investment in CCCC-Zhenhua Lvjian Technology (Ningbo) Co.,        Shanghai Stock Exchange website: www.sse.
 Ltd by the Company and the Related Parties, Proposal for Capital Increase in South   com.cn and the Shanghai Securities News and
 America Company of CCCC and Proposal for Joint Investment in Yancheng Urban          Hong Kong Wen Wei Po on Aug. 23, 2018.
 Expressway by the Company and the Related Parties on Aug. 22, 2018.




26
      3. Events not disclosed in provisional announcements
      √Applicable □Not applicable
                                                                                                                                                                Unit: Yuan Currency: RMB
                                                                                                                                                                                              Reason
                                                                                                                                              Proportion                                     for great
                                                                                             Pricing                                             in the     Settlement                     differences
                                                          Type of         Content of                          Price of       Amount of
                                                                                          principle of                                          amount        mode of                        between
        Related party               Relationship        associated       associated                         associated      associated                                    Market price
                                                                                          associated                                           of similar   associated                     the bargain
                                                        transaction      transaction                        transaction     transaction
                                                                                          transaction                                        transactions   transaction                     price and
                                                                                                                                                  (%)                                         market
                                                                                                                                                                                               price


CCCC Financial Leasing Co.,     Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                     502,962,177.00   502,962,177.00           2.31                 502,962,177.00        /
Ltd.                            parent company                                           on market price                                                       fund




China Road & Bridge             Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                       358,243,636    358,243,636.00           1.64                 358,243,636.00        /
Corporation                     parent company                                           on market price                                                       fund




China Communications            Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                     248,519,083.00   248,519,083.00           1.14                 248,519,083.00        /
Construction Company Ltd.       parent company                                           on market price                                                       fund



CCCC Electrical and
                                Holding subsidiary of                                     Pricing based                                                      Monetary
Mechanical Engineering Co.,                             Selling goods   Project income                     187,488,462.00   187,488,462.00           0.86                 187,488,462.00        /
                                parent company                                           on market price                                                       fund
Ltd.


CCCC Tianjin Dredging Co.,      Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                     137,098,857.00   137,098,857.00           0.63                 137,098,857.00        /
Ltd.                            parent company                                           on market price                                                       fund

China Communications Second
                                Holding subsidiary of                                     Pricing based                                                      Monetary
Navigational Bureau Third                               Selling goods   Project income                     117,230,621.00   117,230,621.00           0.54                 117,230,621.00        /
                                parent company                                           on market price                                                       fund
Engineering Co., Ltd.

Jiangsu Longyuan Zhenhua                                                                  Pricing based                                                      Monetary
                                Joint venture           Selling goods   Project income                     110,250,126.00   110,250,126.00           0.51                 110,250,126.00        /
Marine Engineering Co., Ltd                                                              on market price                                                       fund

Road & Bridge International     Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                     105,144,086.00   105,144,086.00           0.48                 105,144,086.00        /
Co., Ltd.                       parent company                                           on market price                                                       fund

CCCC Second Harbor              Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                     101,372,715.00   101,372,715.00           0.46                 101,372,715.00        /
Engineering Co., Ltd.           parent company                                           on market price                                                       fund

CCCC Third Harbor               Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                     100,341,951.00   100,341,951.00           0.46                 100,341,951.00        /
Engineering Co., Ltd.           parent company                                           on market price                                                       fund

CCCC First Harbor Engineering   Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                      70,466,403.00    70,466,403.00           0.32                  70,466,403.00        /
Co., Ltd.                       parent company                                           on market price                                                       fund

China Communications            Holding subsidiary of   Rendering of                      Pricing based                                                      Monetary
                                                                        Project income                      70,216,049.00    70,216,049.00           0.32                  70,216,049.00        /
Construction Company Ltd.       parent company          labor service                    on market price                                                       fund

CCCC Second Highway             Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                      63,557,612.00    63,557,612.00           0.29                  63,557,612.00        /
Engineering Co. Ltd.            parent company                                           on market price                                                       fund

CCCC Tunnel Engineering Co.,    Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                      57,261,136.00    57,261,136.00           0.26                  57,261,136.00        /
Ltd.                            parent company                                           on market price                                                       fund

Shanghai Communications
                                Holding subsidiary of                                     Pricing based                                                      Monetary
Construction Contracting Co.,                           Selling goods   Project income                      34,589,744.00    34,589,744.00           0.16                  34,589,744.00        /
                                parent company                                           on market price                                                       fund
Ltd.

ZPMC-OTL MARINE                                         Rendering of                      Pricing based                                                      Monetary
                                Joint venture                           Project income                      30,377,284.00    30,377,284.00           0.14                  30,377,284.00        /
CONTRACTOR LIMITED                                      labor service                    on market price                                                       fund

CCCC First Highway              Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                      30,000,000.00    30,000,000.00           0.14                  30,000,000.00        /
Engineering Co., Ltd.           parent company                                           on market price                                                       fund

CCCC Third Harbor               Holding subsidiary of   Rendering of                      Pricing based                                                      Monetary
                                                                        Project income                      24,710,083.00    24,710,083.00           0.11                  24,710,083.00        /
Engineering Co., Ltd.           parent company          labor service                    on market price                                                       fund

No.4 Engineering Co., Ltd.
                                Holding subsidiary of                                     Pricing based                                                      Monetary
of CCCC Second Harbor                                   Selling goods   Project income                      24,459,644.00    24,459,644.00           0.11                  24,459,644.00        /
                                parent company                                           on market price                                                       fund
Engineering Co., Ltd.

Jiangsu Longyuan Zhenhua                                Rendering of                      Pricing based                                                      Monetary
                                Joint venture                           Project income                      24,438,318.00    24,438,318.00           0.11                  24,438,318.00        /
Marine Engineering Co., Ltd                             labor service                    on market price                                                       fund

China Harbor Engineering Co.,   Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                      22,231,105.00    22,231,105.00           0.10                  22,231,105.00        /
Ltd                             parent company                                           on market price                                                       fund

No.1 Engineering Co., Ltd.
                                Holding subsidiary of                                     Pricing based                                                      Monetary
of CCCC Second Harbor                                   Selling goods   Project income                      19,181,054.00    19,181,054.00           0.09                  19,181,054.00        /
                                parent company                                           on market price                                                       fund
Engineering Co., Ltd.

Road & Bridge South China       Holding subsidiary of                                     Pricing based                                                      Monetary
                                                        Selling goods   Project income                      16,524,972.00    16,524,972.00           0.08                  16,524,972.00        /
Engineering Co., Ltd.           parent company                                           on market price                                                       fund

CCCC Fourth Highway             Holding subsidiary of   Rendering of                      Pricing based                                                      Monetary
                                                                        Project income                      13,801,887.00    13,801,887.00           0.06                  13,801,887.00        /
Engineering Co. Ltd.            parent company          labor service                    on market price                                                       fund

CCCC Second Highway             Holding subsidiary of   Rendering of                      Pricing based                                                      Monetary
                                                                        Project income                      12,905,660.00    12,905,660.00           0.06                  12,905,660.00        /
Consultants Co., Ltd.           parent company          labor service                    on market price                                                       fund




                                                                                                                                                                                                    27
                                                                                                                                                                                                  Reason
                                                                                                                                                  Proportion                                     for great
                                                                                                 Pricing                                             in the     Settlement                     differences
                                                          Type of          Content of                             Price of       Amount of
                                                                                              principle of                                          amount        mode of                        between
        Related party               Relationship        associated        associated                            associated      associated                                    Market price
                                                                                              associated                                           of similar   associated                     the bargain
                                                        transaction       transaction                           transaction     transaction
                                                                                              transaction                                        transactions   transaction                     price and
                                                                                                                                                      (%)                                         market
                                                                                                                                                                                                   price

CCCC First Harbor Consultants   Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                          9,654,872.00     9,654,872.00           0.04                   9,654,872.00        /
Co., Ltd.                       parent company                                               on market price                                                       fund

CCCC First Highway Fifth        Holding subsidiary of   Rendering of                          Pricing based                                                      Monetary
                                                                         Project income                          7,500,000.00     7,500,000.00           0.03                   7,500,000.00        /
Engineering Co., Ltd.           parent company          labor service                        on market price                                                       fund

The Third Engineering Co.,
                                Holding subsidiary of                                         Pricing based                                                      Monetary
Ltd. of The First Highway                               Selling goods    Project income                          6,550,315.00     6,550,315.00           0.03                   6,550,315.00        /
                                parent company                                               on market price                                                       fund
Engineering Bureau of CCCC

No.1 Engineering Co., Ltd. of
                                Holding subsidiary of                                         Pricing based                                                      Monetary
CCCC First Harbor Engineering                           Selling goods    Project income                          5,264,957.00     5,264,957.00           0.02                   5,264,957.00        /
                                parent company                                               on market price                                                       fund
Co., Ltd.

CCCC Third Harbor Consultants   Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                          5,018,319.00     5,018,319.00           0.02                   5,018,319.00        /
Co., Ltd.                       parent company                                               on market price                                                       fund

CCCC Guangzhou Dredging         Holding subsidiary of   Rendering of                          Pricing based                                                      Monetary
                                                                         Project income                          4,664,101.00     4,664,101.00           0.02                   4,664,101.00        /
Co. Ltd.                        parent company          labor service                        on market price                                                       fund

ZPMC Mediterranean Liman
                                                                                              Pricing based                                                      Monetary
Makinalari Ticaret Anonim       Joint venture           Selling goods    Project income                          4,262,198.00     4,262,198.00           0.02                   4,262,198.00        /
                                                                                             on market price                                                       fund
Sirketi

CCCC First Highway              Holding subsidiary of   Rendering of                          Pricing based                                                      Monetary
                                                                         Project income                          4,000,000.00     4,000,000.00           0.02                   4,000,000.00        /
Engineering Co., Ltd.           parent company          labor service                        on market price                                                       fund

                                Holding subsidiary of                                         Pricing based                                                      Monetary
Friede &Goldman, Llc                                    Selling goods    Project income                          2,673,016.00     2,673,016.00           0.01                   2,673,016.00        /
                                parent company                                               on market price                                                       fund

                                Holding subsidiary of                                         Pricing based                                                      Monetary
Chuwa Bussan Co. Ltd.                                   Selling goods    Project income                          2,023,654.00     2,023,654.00           0.01                   2,023,654.00        /
                                parent company                                               on market price                                                       fund

ZPMC Changzhou Coatings                                 Rendering of                          Pricing based                                                      Monetary
                                Associated company                       Project income                          1,396,226.00     1,396,226.00           0.01                   1,396,226.00        /
Co., Ltd.                                               labor service                        on market price                                                       fund

CCCC - SHEC Third Highway       Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                          1,057,048.00     1,057,048.00           0.00                   1,057,048.00        /
Engineering Co. Ltd.            parent company                                               on market price                                                       fund

CCCC Tianjin Industry and       Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                           674,414.00        674,414.00           0.00                    674,414.00         /
Trade Co., Ltd.                 parent company                                               on market price                                                       fund

CCCC (Tianjin) Eco-
environmental Protection        Holding subsidiary of   Rendering of                          Pricing based                                                      Monetary
                                                                         Project income                           207,547.00        207,547.00           0.00                    207,547.00         /
Design & Research Institute     parent company          labor service                        on market price                                                       fund
Co., Ltd.

CCCC Highway Consultants        Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                             65,517.00        65,517.00           0.00                      65,517.00        /
Co. Ltd.                        parent company                                               on market price                                                       fund

CCCC Guangzhou Logistics        Holding subsidiary of   Rendering of                          Pricing based                                                      Monetary
                                                                         Project income                             56,604.00        56,604.00           0.00                      56,604.00        /
Co., Ltd.                       parent company          labor service                        on market price                                                       fund

Hainan CCCC Fourth Harbor       Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                             13,248.00        13,248.00           0.00                      13,248.00        /
Construction Co., Ltd           parent company                                               on market price                                                       fund

CCCC - SHEC Second              Holding subsidiary of                                         Pricing based                                                      Monetary
                                                        Selling goods    Project income                              7,727.00         7,727.00           0.00                       7,727.00        /
Engineering Co. Ltd.            parent company                                               on market price                                                       fund

CCCC Second Highway             Holding subsidiary of   Rendering of                          Pricing based                                                      Monetary
                                                                         Project income                              7,547.00         7,547.00           0.00                       7,547.00        /
Engineering Co. Ltd.            parent company          labor service                        on market price                                                       fund

No.2 Engineering Co., Ltd.                                                 Consigned
                                Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
of CCCC Third Harbor                                                    processing for the                     435,493,711.00   435,493,711.00           2.41                 435,493,711.00        /
                                parent company          labor service                        on market price                                                       fund
Engineering Co., Ltd.                                                       Company

                                                                           Consigned
CCCC Second Harbor              Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
                                                                        processing for the                     319,635,901.00   319,635,901.00           1.77                 319,635,901.00        /
Engineering Co., Ltd.           parent company          labor service                        on market price                                                       fund
                                                                            Company

CCCC Electrical and                                                        Consigned
                                Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
Mechanical Engineering Co.,                                             processing for the                     183,813,849.00   183,813,849.00           1.02                 183,813,849.00        /
                                parent company          labor service                        on market price                                                       fund
Ltd.                                                                        Company

                                                                           Consigned
CCCC Fourth Highway             Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
                                                                        processing for the                     180,145,846.00   180,145,846.00           1.00                 180,145,846.00        /
Engineering Co. Ltd.            parent company          labor service                        on market price                                                       fund
                                                                            Company

                                                                           Consigned
CCCC Third Harbor               Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
                                                                        processing for the                     171,166,061.00   171,166,061.00           0.95                 171,166,061.00        /
Engineering Co., Ltd.           parent company          labor service                        on market price                                                       fund
                                                                            Company

                                                                           Consigned
CCCC Tianjin Dredging Co.,      Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
                                                                        processing for the                     119,241,651.00   119,241,651.00           0.66                 119,241,651.00        /
Ltd.                            parent company          labor service                        on market price                                                       fund
                                                                            Company

No.2 Engineering Co., Ltd.                                                 Consigned
                                Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
of CCCC Fourth Harbor                                                   processing for the                      58,238,659.00    58,238,659.00           0.32                  58,238,659.00        /
                                parent company          labor service                        on market price                                                       fund
Engineering Co., Ltd.                                                       Company

                                                                           Consigned
CCCC - SHEC Second              Holding subsidiary of     Receiving                           Pricing based                                                      Monetary
                                                                        processing for the                      51,067,364.00    51,067,364.00           0.28                  51,067,364.00        /
Engineering Co. Ltd.            parent company          labor service                        on market price                                                       fund
                                                                            Company




28
                                                                                                                                                                                                    Reason
                                                                                                                                                    Proportion                                     for great
                                                                                                   Pricing                                             in the     Settlement                     differences
                                                           Type of           Content of                             Price of       Amount of
                                                                                                principle of                                          amount        mode of                        between
         Related party               Relationship        associated         associated                            associated      associated                                    Market price
                                                                                                associated                                           of similar   associated                     the bargain
                                                         transaction        transaction                           transaction     transaction
                                                                                                transaction                                        transactions   transaction                     price and
                                                                                                                                                        (%)                                         market
                                                                                                                                                                                                     price

                                                                            Consigned
CCCC Shanghai Dredging Co.,      Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       44,255,071.00    44,255,071.00           0.24                  44,255,071.00        /
Ltd                              parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
CCCC Shanghai Equipment          Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       31,619,960.00    31,619,960.00           0.17                  31,619,960.00        /
Engineering Co., Ltd.            parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
CCCC Third Highway               Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       26,704,324.00    26,704,324.00           0.15                  26,704,324.00        /
Engineering Co. Ltd.             parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
CCCC First Harbor Consultants    Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       26,259,626.00    26,259,626.00           0.15                  26,259,626.00        /
Co., Ltd.                        parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
CCCC First Harbor Engineering    Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       24,659,835.00    24,659,835.00           0.14                  24,659,835.00        /
Co., Ltd.                        parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
CCCC Second Highway              Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       22,139,413.00    22,139,413.00           0.12                  22,139,413.00        /
Consultants Co., Ltd.            parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
CCCC Leasing No.2 Co. Ltd.                                               processing for the                       17,399,943.00    17,399,943.00           0.10                  17,399,943.00        /
                                 parent company          labor service                         on market price                                                       fund
                                                                             Company

No.1 Engineering Co., Ltd. of                                               Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
CCCC First Harbor Engineering                                            processing for the                       16,698,341.00    16,698,341.00           0.09                  16,698,341.00        /
                                 parent company          labor service                         on market price                                                       fund
Co., Ltd.                                                                    Company

China Communications Second                                                 Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
Navigational Bureau Third                                                processing for the                       13,181,025.00    13,181,025.00           0.07                  13,181,025.00        /
                                 parent company          labor service                         on market price                                                       fund
Engineering Co., Ltd.                                                        Company

                                                                            Consigned
CCCC - SHEC Third Highway        Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                       12,990,744.00    12,990,744.00           0.07                  12,990,744.00        /
Engineering Co. Ltd.             parent company          labor service                         on market price                                                       fund
                                                                             Company

No.3 Engineering Co., Ltd.                                                  Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
of CCCC Third Harbor                                                     processing for the                       10,326,479.00    10,326,479.00           0.06                  10,326,479.00        /
                                 parent company          labor service                         on market price                                                       fund
Engineering Co., Ltd.                                                        Company

CCCC Water Transportation                                                   Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
Planning and Design Institute                                            processing for the                        9,564,649.00     9,564,649.00           0.05                   9,564,649.00        /
                                 parent company          labor service                         on market price                                                       fund
Co., Ltd.                                                                    Company

                                                                            Consigned
ZPMCMediterraneanLimanMak                                  Receiving                            Pricing based                                                      Monetary
                                 Joint venture                           processing for the                        8,502,537.00     8,502,537.00           0.05                   8,502,537.00        /
inalariTicaretAnonimSirketi                              labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
Chuwa Bussan Co. Ltd.                                                    processing for the                        7,063,023.00     7,063,023.00           0.04                   7,063,023.00        /
                                 parent company          labor service                         on market price                                                       fund
                                                                             Company

Installation Engineering Co.,                                               Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
Ltd. of CCCC First Harbor                                                processing for the                        5,974,138.00     5,974,138.00           0.03                   5,974,138.00        /
                                 parent company          labor service                         on market price                                                       fund
Engineering Co. Ltd.                                                         Company

                                                                            Consigned
CCCC Tunnel Engineering Co.,     Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                        4,536,422.00     4,536,422.00           0.03                   4,536,422.00        /
Ltd.                             parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
China Communications             Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                        3,701,020.00     3,701,020.00           0.02                   3,701,020.00        /
Construction Company Ltd.        parent company          labor service                         on market price                                                       fund
                                                                             Company

CCCC Marine Engineering &                                                   Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
Technology Research Center                                               processing for the                        3,425,753.00     3,425,753.00           0.02                   3,425,753.00        /
                                 parent company          labor service                         on market price                                                       fund
Co., Ltd.                                                                    Company

                                                                            Consigned
Shanghai Jiangtian Industrial    Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                        2,594,773.00     2,594,773.00           0.01                   2,594,773.00        /
Co., Ltd                         parent company          labor service                         on market price                                                       fund
                                                                             Company

Shanghai Communications                                                     Consigned
                                 Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
Construction Contracting Co.,                                            processing for the                        1,254,523.00     1,254,523.00           0.01                   1,254,523.00        /
                                 parent company          labor service                         on market price                                                       fund
Ltd.                                                                         Company

                                                                            Consigned
China Communications             Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                         318,966.00        318,966.00           0.00                    318,966.00         /
Materials & Equipment Co., Ltd   parent company          labor service                         on market price                                                       fund
                                                                             Company

                                                                            Consigned
CCCC Third Harbor Consultants    Holding subsidiary of     Receiving                            Pricing based                                                      Monetary
                                                                         processing for the                           85,470.00        85,470.00           0.00                      85,470.00        /
Co., Ltd.                        parent company          labor service                         on market price                                                       fund
                                                                             Company

                                 Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                      Monetary
Chuwa Bussan Co. Ltd.                                                                                             19,663,204.00    19,663,204.00           0.11                  19,663,204.00        /
                                 parent company            goods          for the Company      on market price                                                       fund

CCCC Shanghai Equipment          Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                      Monetary
                                                                                                                 210,238,846.00   210,238,846.00           1.16                 210,238,846.00        /
Engineering Co., Ltd.            parent company            goods          for the Company      on market price                                                      fund




                                                                                                                                                                                                          29
                                                                                                                                                                                                                Reason
                                                                                                                                                           Proportion                                          for great
                                                                                                     Pricing                                                  in the      Settlement                         differences
                                                             Type of           Content of                             Price of           Amount of
                                                                                                  principle of                                               amount         mode of                            between
         Related party                 Relationship        associated         associated                            associated          associated                                        Market price
                                                                                                  associated                                                of similar    associated                         the bargain
                                                           transaction        transaction                           transaction         transaction
                                                                                                  transaction                                             transactions    transaction                         price and
                                                                                                                                                               (%)                                              market
                                                                                                                                                                                                                 price

ZPMC Changzhou Coatings                                    Purchase of     Providing materials    Pricing based                                                            Monetary
                                   Associated company                                                              108,484,161.00       108,484,161.00             0.60                   108,484,161.00          /
Co., Ltd.                                                    goods          for the Company      on market price                                                             fund

Shanghai Jiangtian Industrial      Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                            Monetary
                                                                                                                    65,858,536.00        65,858,536.00             0.36                    65,858,536.00          /
Co., Ltd                           parent company            goods          for the Company      on market price                                                             fund

CCCC National Engineering
                                   Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                            Monetary
Research Center of Dredging                                                                                          1,245,211.00         1,245,211.00             0.01                     1,245,211.00          /
                                   parent company            goods          for the Company      on market price                                                             fund
Technology and Equipment

China Communications               Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                            Monetary
                                                                                                                      258,621.00            258,621.00             0.00                       258,621.00          /
Construction Company Ltd.          parent company            goods          for the Company      on market price                                                             fund

CCCC Water Transportation
                                   Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                            Monetary
Planning and Design Institute                                                                                         237,931.00            237,931.00             0.00                       237,931.00          /
                                   parent company            goods          for the Company      on market price                                                             fund
Co., Ltd.

China Communications               Holding subsidiary of   Purchase of     Providing materials    Pricing based                                                            Monetary
                                                                                                                      209,106.00            209,106.00             0.00                       209,106.00          /
Materials & Equipment Co., Ltd     parent company            goods          for the Company      on market price                                                             fund

Jiangsu Longyuan Zhenhua                                   Purchase of     Providing materials    Pricing based                                                            Monetary
                                  Joint venture                                                                     10,643,590.00        10,643,590.00             0.06                    10,643,590.00          /
Marine Engineering Co., Ltd                                  goods          for the Company      on market price                                                             fund

CNPC & CCCC Petroleum             Holding subsidiary of    Purchase of     Providing materials    Pricing based                                                            Monetary
                                                                                                                     1,487,613.00         1,487,613.00             0.01                     1,487,613.00
Sales Co., Ltd.                   parent company             goods          for the Company      on market price                                                             fund

CCCC Shanghai Channel             Holding subsidiary of    Purchase of     Providing materials    Pricing based                                                            Monetary
                                                                                                                      302,564.00            302,564.00             0.00                       302,564.00          /
Equipment Industry Co., Ltd.      parent company             goods          for the Company      on market price                                                             fund

CCCC Tunnel Engineering Co.,      Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                            34,392,257.00        34,392,257.00             0.16                    34,392,257.00          /
Ltd.                              parent company                            boring machine       on market price                                                             fund

CCCC Second Highway               Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                            26,075,675.00        26,075,675.00             0.12                    26,075,675.00          /
Engineering Co. Ltd.              parent company                            boring machine       on market price                                                             fund

CCCC First Highway                Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                            17,393,504.00        17,393,504.00             0.08                    17,393,504.00          /
Engineering Co., Ltd.             parent company                            boring machine       on market price                                                             fund

Jiangsu Longyuan Zhenhua                                                                          Pricing based                                                            Monetary
                                  Joint venture            Other inflows     Vessel leasing                         17,133,962.00        17,133,962.00            0.08                     17,133,962.00          /
Marine Engineering Co., Ltd                                                                      on market price                                                             fund

Binhai Environmental Protection
                                  Holding subsidiary of                                           Pricing based                                                            Monetary
Dredging Co., ltd. of CCCC                                 Other inflows     Vessel leasing                         16,810,345.00        16,810,345.00            0.08                     16,810,345.00          /
                                  parent company                                                 on market price                                                             fund
Tianjin Dredging Co., Ltd.

China Communications Second
                                  Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
Navigational Bureau Third                                  Other inflows                                            15,756,410.00        15,756,410.00            0.07                     15,756,410.00          /
                                  parent company                            boring machine       on market price                                                             fund
Engineering Co., Ltd.

China Communications Second
                                  Holding subsidiary of                                           Pricing based                                                            Monetary
Navigational Bureau Third                                  Other inflows     Vessel leasing                             8,909,091            8,909,091            0.04                         8,909,091          /
                                  parent company                                                 on market price                                                             fund
Engineering Co., Ltd.

CCCC First Harbor Engineering     Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                            12,181,009.00        12,181,009.00            0.06                     12,181,009.00          /
Co., Ltd.                         parent company                            boring machine       on market price                                                             fund

CCCC - SHEC First Highway         Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                             7,304,022.00         7,304,022.00            0.03                      7,304,022.00          /
Engineering Co. Ltd.              parent company                            boring machine       on market price                                                             fund

CCCC Third Highway                Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                             5,617,718.00         5,617,718.00            0.03                      5,617,718.00          /
Engineering Co. Ltd.              parent company                            boring machine       on market price                                                             fund

Road & Bridge International       Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
                                                           Other inflows                                             4,909,838.00         4,909,838.00            0.02                      4,909,838.00          /
Co., Ltd.                         parent company                            boring machine       on market price                                                             fund

The Fourth Engineering Co.,
                                  Holding subsidiary of                    Leasing of tunnel      Pricing based                                                            Monetary
Ltd. of CCCC Second Highway                                Other inflows                                             2,949,470.00         2,949,470.00            0.01                      2,949,470.00          /
                                  parent company                            boring machine       on market price                                                             fund
Engineering Co., Ltd.

China Communications              Holding subsidiary of                                           Pricing based                                                            Monetary
                                                           Other inflows     Vessel leasing                           358,225.00            358,225.00            0.00                        358,225.00          /
Construction Company Ltd.         parent company                                                 on market price                                                             fund

Total                                                                                                   /                /            4,938,949,961.00           12.38          /                        /        /

Details of large amount of sales returns                                                         None

                                                                                                 On May 9, 2016, the annual general meeting of the Company in 2015 approved Proposal for Signing Framework
                                                                                                 Agreement on Associated Transaction between the Company and CHINA COMMUNICATIONS CONSTRUCTION CO.,
Explanation for associated transactions                                                          LTD. In 2018, the amount of the annual associated transaction in the normal business between the Company and its
                                                                                                 subsidiaries and China Communications Construction Co., Ltd and its subsidiaries did not exceed RMB 11 billion Yuan.
                                                                                                 The Annual General Meeting had authorized the Company’s management to handle the relevant specific matters.




2.Associated transactions arising from acquisition or offering of assets or stock equity
        1. Events disclosed in the provisional announcement, without progress or changes in follow-up implementation
        □Applicable √Not applicable




30
    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



    4. Where agreed performance is involved, the performance achievement during the reporting period should be disclosed
    □Applicable √Not applicable

3.Material associated transactions with joint external investments
    1. Events disclosed in the 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

4.Current associated rights of credit and liabilities
    1. Events disclosed in the 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

    5.Others
    □Applicable √Not applicable

XV. Material contracts and their performance
1.Trusteeship, contracting and leasing matters
    1. Trusteeship
    □Applicable √Not applicable

    2. Contracting
    □Applicable √Not applicable

    3. Leasing
    √Applicable □Not applicable
                                                                                                                               Unit: Yuan Currency: RMB

                                                                                                      Basis for      Impacts of
                                            Amount       Starting   Termination                                                     Associated
 Name of                     Leased                                                 Income from      determining    income from
           Name of lessee                 involved in    date of      date of                                                       transaction Relationship
  lessor                     assets                                                    leasing      income from    leasing on the
                                        leased assets    leasing      leasing                                                          or not
                                                                                                       leasing        Company

           Shanghai
           Zhenlong Asset
The                          Lease of                    Aug. 10,
           Management Co.,              264,709,805.71               July 9, 2025   45,037,758.64     Agreed       45,037,758.64        No         Other
Company                       houses                       2012
           Ltd, and other
           companies




                                                                                                                                                           31
      (II) Guarantee
      √Applicable □Not applicable
                                                                                                                                                                     Unit: Yuan Currency: RMB

                                               External guarantee of the Company (excluding guarantee to the subsidiaries)

                Relation
              between the                                          Date of                                                                                                      Guarantee
                                                                                   Starting      Due                    Fulfillment of              Amount of       Counter
               guarantor       Guaranteed       Amount of         guarantee                                 Type of                      Overdue                                  by the
Guarantor                                                                          date of      date of                 the guarantee                overdue       guarantee                   Relationship
                and the          party          guarantee      (signing date of                            guarantee                      or not                                  related
                                                                                  guarantee    guarantee                    or not                  guarantee        or not
                 listed                                          agreement)                                                                                                     party or not
               company

Total amount of guarantee incurred during the reporting period (excluding
                                                                                                                                                                  -10,790,000
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
                                                                                                                                                                 943,700,800
period

Total balance of guarantee to the subsidiaries at the end of the reporting
                                                                                                                                                                3,099,986,800
period (B)

                                                           Total amount of guarantee of the Company (including guarantee to the subsidiaries)

Total amount of guarantee (A+B)                                                                                                                                 3,099,986,800

Proportion of total amount of guarantee in the net assets of the Company (%)                                                                                             17.6

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
                                                                                                                                                                2,315,882,800
party with the asset-liability ratio over 70% (D)

Amount of guarantee exceeding 50% of net assets (E)

Total guarantee amount of the above three items (C+D+E)                                                                                                         2,315,882,800

Explanation for the joint and several repayment liabilities if the undue
guarantee

                                                                                  The 1st provisional general meeting for 2008 held in Sept. 22, 2008 deliberated and approved Proposal for Providing
                                                                                  Financing Guarantee to the Subsidiary Shanghai Zhenhua Port Machinery (Hong Kong) Co., Ltd by the Company and
Description of guarantee                                                          agreed to provide the financial support to the subsidiary in Hong Kong and provided the guarantee for the loan it applied
                                                                                  for through the bank and other guarantee matters were deliberated and approved on the 30th meeting of the 5th session of
                                                                                  Board of Directors.




3.Consigned cash assets management
      1. Consigned financing
      (1) General 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 of consigned loans
      □Applicable √Not applicable
      Other information
      □Applicable √Not applicable



32
    (2) Individual consigned loan
    □Applicable √Not applicable
    Other information
    □Applicable √Not applicable

    (3) Provision for impairment of consigned loan
    □Applicable √Not applicable

3. Other information
    □Applicable √Not applicable

4.Other material contracts
    □Applicable √Not applicable

XVI. Particulars about other important events
    □Applicable √Not applicable

XVII. Particulars about actively performing social responsibilities
1.Poverty reduction of the listed company
    □Applicable √Not applicable

2.Fulfillment of social responsibility
     √Applicable □Not applicable
     The Company actively bears the social responsibilities of the state-owned enterprise, enhances the responsibility
management to create the benefit for the shareholders, upgrades the operation quality to create the high quality products for
the users, effectively readjust the industrial structure and the business layout, responds to the “Belt and Road” initiative and
“Made in China 2025 Strategy” with the actual action, implements the development strategy with equipment manufacturing
as the center and capital operation and Internet+ as two wings, continuously increases the investment in innovation,
accelerates the layout of the overseas regional center, builds Terminexus digitalized intelligent platform and provides faster
and more efficient services to the global customers.
     The Company is always keeping “human oriented”, actively builds the occupational development platform for the
employees and earnestly maintains the rights and interests of the employees with many measures. The Company pays
high attention to the communication with the stakeholders including the customers, the communities, schools and the social
public and continually adjusts the overall operation of the Company according to the expectations of the related parties. As
a manufacturing enterprise, Shanghai Zhenhua Heavy Industries Co., Ltd advocates the green development and integrates
the sustainable development concept in every aspect of production and operation.
     The Company relies on the large-scale charity sale activities and actively raises the “Fund for Schooling and Dream
Building of Shanghai Zhenhua Heavy Industries Co., Ltd”, continually carries out the help and support activities in the
targeted poverty alleviation unit of the Company, Tu’e Town, Lanping County Nujiang City, Yunnan Province in the aspect
of education improvement and so on. During the reporting period, it organized to carry out the poverty alleviation activity of
“Being Grateful to You and Schooling and Dreaming Building” and raised RMB 59,653.66 Yuan for the “Fund for Schooling
and Dream Building of Shanghai Zhenhua Heavy Industries Co., Ltd” to contribute 4 computers, 110 bed clothes for the
students and 110 sets of schoolbags and stationeries to two primary schools in Tu’e Town, Lanping County, Nujiang City,
Yunnan Province and denote the school gifts to 19 newly enrolled poor students in Majimi Village Maji Town Fugong County.
The Youth League Committee of the Company led to purchase the schoolbags, pencil bags, Xinhua Directory, English-
Chinese Directory, copybooks, diaries, vacuum cups and so on, with the total value of RMB 130,000 Yuan for contribution
to schooling. In addition, it denoted over 900 new clothes to the front line of the poverty alleviation workers in two schools
in Xihe County, Longnan City, Gansu Province and Ninglang County, Linjiang City, Yunnan Province and Fugong County,
Nujiang City, Yunnan Province.




                                                                                                                               33
3.Environmental information
     1. Information about environmental protection of the Company and its subsidiaries as the key pollutant
discharge units published by environmental protection administration
      √Applicable □Not applicable
      (1) Pollutant discharge
      √Applicable □Not applicable
      The main type of the pollutant discharge by Longxing Subsidiary Company and Nantong Subsidiary Branch of the
Company: in accordance with the requirements of the local government, it installed online monitoring equipment and
achieved the networking of the monitoring data about the discharged wastewater and waste gas into the network of the
government.
      Discharge mode: it newly increased the domestic sewage treatment facilities and installed the online monitoring system;
the domestic sewage was discharged up to the standard after treatment; it reconstructed the steel plate pre-treatment flow
line and coating flow line, reconstructed VOCs end treatment unit, newly increased the weld fume adsorption and treatment
unit; the atmospheric pollutants such as the waste gas, fume and VOCs were discharged up to the standard after treatment;
the solid wastes and the hazardous wastes were handed over to the qualified units for treatment.

     (2) Construction and operation of pollution control facilities
     √Applicable □Not applicable
     Changxing Subsidiary Company of Shanghai Zhenhua Heavy Industries Co., Ltd accomplished the reconstruction of
pretreatment and coating flow line and VOCs end treatment unit, installed the sound-proof cotton in the workshops with
relatively high noise and the construction and the operation of the pollution prevention facilities were in good condition.

     (3) Environmental impact assessment of construction project and other administrative licenses for environmental
protection
     √Applicable □Not applicable
     It accomplished the environmental impact assessment for the reconstruction of 4# hazardous goods dock of Changxing
Subsidiary Company.

     (4) Emergency proposal for environmental accident
     √Applicable □Not applicable
     Changxing Subsidiary Company, Jiangyin Subsidiary Company, Nantong Company, Nantong Transmitter Co., Ltd,
Ocean Engineering Platform Division, Shanghai Zhenhua Port Machinery Heavy Industries Co., Ltd, Port Machinery General
Equipment Co., Ltd and Qidong Ocean Engineering Co., Ltd established comprehensive and special emergency preplan
for typhoon prevention, flood prevention, sunstroke prevention, cooling, special equipment and ship. Up to now, Shanghai
Zhenhua Heavy Industries Co., Ltd has released 129 kinds of emergency preplans.

    (5) Self-monitoring scheme for environmental protection
    √Applicable □Not applicable
    The self-monitoring scheme of Changxing Subsidiary Company of Shanghai Zhenhua Heavy Industries Co., Ltd
was: 1. Online wastewater monitoring; 2. Environmental monitoring by the entrusted third party; 3. Boundary noise self-
measurement.

     (6) Other environmental information to be disclosed
     □Applicable √Not applicable

     2. Particulars about the environmental protection of the companies other than those defined as key pollutant-
discharge unit
    √Applicable □Not applicable
    The types of the main pollutants discharged from Qidong Ocean Engineering Co., Ltd, Shanghai Port Machinery Heavy
Industries Co., Ltd and Nantong Transmitter Co., Ltd included wastewater, waste gas, fume, volatile organic substances,
general industrial solid wastes and hazardous wastes.



34
    Discharge mode: Shanghai Port Machinery Heavy Industries Co., Ltd and Qidong Ocean Engineering Co., Ltd
reconstructed the wastewater treatment units and the wastewater was discharged up to the standard after treatment;
Nantong Transmitter Co., Ltd reformed the environmental protection equipment, the atmospheric pollutants such as the
waste gas, fume and VOCs were discharged in the manner of organized discharge; the solid wastes and the hazardous
wastes were handed over to the qualified units for treatment.

    3. Description of the reasons for failing to disclose the environmental information by the companies other than
the key pollutant discharge unit
    □Applicable √Not applicable

    4. Description of the follow-up progress and changes in the contents of environmental information disclosed
during the reporting period
    □Applicable √Not applicable

4.Other information
    □Applicable √Not applicable

XVIII. Convertible bonds
1.Issuance of convertible bonds
    □Applicable √Not applicable

2.Information about the convertible bond holder and guarantor during the reporting period
    □Applicable √Not applicable

3.Changes in convertible bonds during the reporting period
    □Applicable √Not applicable
    Accumulated conversion of convertible bonds during the reporting period
    □Applicable √Not applicable

4.Previous adjustments of conversion price
    □Applicable √Not applicable

5.Particulars about the liabilities, credit changes and cash arrangement for debt repayment in future years
    □Applicable √Not applicable

6.Other information about convertible bonds
    □Applicable √Not applicable




                                                                                                                 35
Section VI                             Changes in Ordinary Shares and Information about Shareholders


I.Changes in ordinary shares capital
1.Table of changes in ordinary shares
      1.Table of changes in ordinary shares
                                                                                                                                                Unit: share

                                           Before this change                                  Change (+, -)                            After this change
                                                                                    Dividend     Contributed                                          Ratio
                                          Number         Ratio (%)    Stock issue                                Others    Subtotal     Number
                                                                                     stock     Capital Surplus                                        (%)
I. Floating shares with trading
limited conditions
1. Shared held by the state
2. Shares held by state legal entity
3. Other shares held by the domestic
investors
Thereinto: shares held by the domestic
non-state legal entity
Share held by domestic natural person
4. Shares held by foreign investors
Thereinto: shares held by overseas
legal entity
Shares held by the overseas natural
person
II. Floating shares without trading
                                         4,390,294,584      100.00                                878,058,917             878,058,917 5,268,353,501 100.00
limited conditions
1. Common stock (RMB denominated)        2,768,331,384        63.06                               553,666,277             553,666,277 3,321,997,661   63.06
Domestically-Listed Shares Held By
                                         1,621,963,200        36.94                               324,392,640             324,392,640 1,946,355,840   36.94
Foreign Investors-Dividend Stock
3. Overseas-Listed Shares Held By
Foreign Investors-Dividend Stock
4. Others
III. Total of ordinary shares            4,390,294,584      100.00                                878,058,917             878,058,917 5,268,353,501 100.00


      2. Description of the changes in ordinary shares
      √Applicable □Not applicable
      This year, The Company adopted the profit distribution plan for 2017. Based on the total shares of the Company by Dec.
31, 2017 as the basic number, 2 bonus shares per 10 shares were distributed to all shareholder of the Company and the
total shares after conversion were 5,268,353,501 shares.

      3. Impact of changes in ordinary shares on the earnings per share and net asset value per share in the latest one year
and the latest one period (if any)
      √Applicable □Not applicable

                                                              Before change in shares                                After change in shares
 EPS (Yuan)                                                                             0.101                                                0.084
 Net assets per share (Yuan)                                                             3.46                                                  2.88




36
     4. Other contents that the Company deems necessary or is required by the securities regulatory authorities to
disclose
     □Applicable √Not applicable

2.Changes in restricted shares
     □Applicable √Not applicable

II. Issuance and listing of securities
1.Securities issuance by the reporting period
    □Applicable √Not applicable
    Particulars about the issuance of securities during the reporting period (for bonds of different interest rates within the
duration, please state them respectively):
    □Applicable √Not applicable

2.Changes in total ordinary shares of the Company and the shareholder structure, as well as the assets and
liabilities
     □Applicable √Not applicable

3.Existing internal employee ownership
     □Applicable √Not applicable

III. Shareholders and actual controller
1.Total number of shareholders

Total of ordinary shareholders by the end of the reporting period                                            246,260
Total of ordinary shareholders by the end of the month previous to the disclosure
                                                                                                             235,940
date of annual report



2.Table of the shares held by Top 10 shareholders, Top 10 holders of marketable shares (or shareholders without
trading limited conditions) by the end of reporting period
                                                                                                                               Unit: share

                                                  Shares held by Top 10 shareholders
                                                          Shares held                Number of       Pledged or frozen
                                             Changes in                                                   status
                                                          at end of the Proportion shares with                           Nature of
       Name of shareholder (in full)        the reporting
                                                            reporting      (%)     trading limited    Share     Number shareholder
                                               period
                                                             period               conditions held     status   of shares
                                                                                                                               Overseas
CCCG (HK) Holding Limited                    152,792,640    916,755,840     17.401               0    None               0
                                                                                                                             legal person
China Communications Construction                                                                                            State-owned
                                             142,590,341    855,542,044     16.239               0    None               0
Company Ltd.                                                                                                                 legal person
China Communications Construction Group                                                                                      State-owned
                                             110,537,229    663,223,375     12.589               0    None               0
Co., Ltd.                                                                                                                    legal person
Central Huijin Asset Management Co., Ltd      14,896,440     89,378,640       1.70                   Unknown                  Unknown

China Securities Finance Co., Ltd             25,481,394     82,269,868       1.56                   Unknown                  Unknown

Securities investment fund for Structural
Adjustment ETF by CMBChina-Bosera             21,860,489     21,860,489       0.41                   Unknown                  Unknown
Central Securities Enterprises




                                                                                                                                       37
                                                    Shares held by Top 10 shareholders
                                                            Shares held                Number of       Pledged or frozen
                                               Changes in                                                   status
                                                            at end of the Proportion shares with                           Nature of
       Name of shareholder (in full)          the reporting
                                                              reporting      (%)     trading limited    Share     Number shareholder
                                                 period
                                                               period               conditions held     status   of shares
BOSERA FUNDS - Agricultural Bank of China
- BOSARE China Securities Financial Assets       3,309,320     19,855,920       0.38                   Unknown              Unknown
Management Plan
E FUND Management - Agricultural Bank
of China - E FUND Management China               3,309,320     19,855,920       0.38                   Unknown              Unknown
Securities Financial Assets Management Plan
DACHENG FUND - Agricultural Bank of
China - DACHENG China Securities Financial       3,309,320     19,855,920       0.38                   Unknown              Unknown
Assets Management Plan
Harvest Fund - Agricultural Bank of China -
Harvest China Securities Financial Assets        3,309,320     19,855,920       0.38                   Unknown              Unknown
Management Plan
GF Fund - Agricultural Bank of China -
GF China Securities Financial Assets             3,309,320     19,855,920       0.38                   Unknown              Unknown
Management Plan
Lombarda China Fund - Agricultural Bank
of China - Lombarda China Fund China             3,309,320     19,855,920       0.38                   Unknown              Unknown
Securities Financial Assets Management Plan
China Asset Management - Agricultural Bank
of China - China Asset Management China          3,309,320     19,855,920       0.38                   Unknown              Unknown
Securities Financial Assets Management Plan
Yinhua Fund - Agricultural Bank of China -
Yinhua China Securities Financial Assets         3,309,320     19,855,920       0.38                   Unknown              Unknown
Management Plan
China Southern Asset Management -
Agricultural Bank of China - CSAM China          3,309,320     19,855,920       0.38                   Unknown              Unknown
Securities Financial Assets Management Plan
ICBC Credit Suisse Fund - Agricultural
Bank of China - ICBC Credit Suisse China         3,309,320     19,855,920       0.38                   Unknown              Unknown
Securities Financial Assets Management Plan

                                  Shareholdings of Top 10 shareholders without trading limited conditions
                                                                              Number of marketable          Type & number of shares
                                                                              shares without trading
                            Name of shareholder
                                                                                limited conditions            Type          Number
                                                                                       held
                                                                                                        Foreign-oriented
 CCCG (HK) Holding Limited                                                          916,755,840
                                                                                                             stocks
 China Communications Construction Company Ltd.                                     855,542,044              A-share
 China Communications Construction Group Co., Ltd.                                  663,223,375              A-share
 Central Huijin Asset Management Co., Ltd                                              89,378,640            A-share
 China Securities Finance Co., Ltd                                                     82,269,868            A-share
 Securities investment fund for Structural Adjustment ETF by CMB China-
                                                                                       21,860,489            A-share
 Bosera Central Securities Enterprises
 FUNDS - Agricultural Bank of China - BOSARE China Securities Financial
                                                                                       19,855,920            A-share
 Assets Management Plan
 E FUND Management - Agricultural Bank of China - E FUND
                                                                                       19,855,920            A-share
 Management China Securities Financial Assets Management Plan
 DACHENG FUND - Agricultural Bank of China - DACHENG China
                                                                                       19,855,920            A-share
 Securities Financial Assets Management Plan



38
                                Shareholdings of Top 10 shareholders without trading limited conditions
                                                                               Number of marketable           Type & number of shares
                                                                               shares without trading
                          Name of shareholder
                                                                                 limited conditions              Type             Number
                                                                                        held
 Harvest Fund - Agricultural Bank of China - Harvest China Securities
                                                                                       19,855,920               A-share
 Financial Assets Management Plan
 GF Fund - Agricultural Bank of China - GF China Securities Financial
                                                                                       19,855,920               A-share
 Assets Management Plan
 Lombarda China Fund - Agricultural Bank of China - Lombarda China
                                                                                       19,855,920               A-share
 Fund China Securities Financial Assets Management Plan
 China Asset Management - Agricultural Bank of China - China Asset
                                                                                       19,855,920               A-share
 Management China Securities Financial Assets Management Plan
 Yinhua Fund - Agricultural Bank of China - Yinhua China Securities
                                                                                       19,855,920               A-share
 Financial Assets Management Plan
 China Southern Asset Management - Agricultural Bank of China - CSAM
                                                                                       19,855,920               A-share
 China Securities Financial Assets Management Plan
 ICBC Credit Suisse Fund - Agricultural Bank of China - ICBC Credit
                                                                                       19,855,920               A-share
 Suisse China Securities Financial Assets Management Plan
                                                                              Among the above top 10 shareholders, CCCG (HK) Holding
                                                                              Limited, China Communications Construction Group Co.,
                                                                              Ltd. and China Communications Construction Company
 Notes to the related relation or consistent actions of the above-mentioned   Ltd. are related companies. It was unknown to the
 shareholders                                                                 Company whether there was related relation or concerted
                                                                              actor specified in the Management Method on Information
                                                                              Disclosure for Shareholding Change of the Shareholders of
                                                                              Listed Companies.


    Number of shares held by Top 10 shareholders with trading limited conditions and the trading limited conditions
    □Applicable √Not applicable

3.Strategic investor or ordinary corporations as Top 10 shareholders for rights issue
     □Applicable √Not applicable
IV. Particulars about the controlling shareholder and the actual controller
1.Controlling shareholder
    1. Legal person
    √Applicable □Not applicable

Name                                          China Communications Construction Group Co., Ltd.
Company principal or legal
                                              Liu Qitao
representative
Date of establishment                         Dec. 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 consultation
Main business
                                              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 tourist industries.




                                                                                                                                           39
                                            CCCG holds 59.91% of the stock equity of CCCC (601800.SH) and it is the controlling
                                            shareholder.
                                            CCCG holds 100% of the stock equity of CCCG Real Estate Group Co., Ltd. CCCG Real
                                            Estate Group Co., Ltd holds 100% of the stock equity of Zhongzhu Real Estate Development
 Shareholdings in other controlled or
                                            Co., Ltd. Zhongzhu Real Estate Development Co., Ltd holds 53.32% of the stock equity
 non-controlled listed companies at
                                            of CCCG Real Estate Co., Ltd (name used before: Chongqing Industries, Zhongfang Real
 home or abroad during the reporting
                                            Estate) (000726.SZ) and it is the controlling shareholder.
 period
                                            CCCG and its controlling subsidiaries totally hold 28.91% of the stock equity of Greentown
                                            Holding Co., Ltd (03900.HK) and are the controlling shareholder.
                                            CCCG and its subsidiaries hold 29.99% of the stock equity of Shanghai Zhenhua Heavy
                                            Industries Co., Ltd (600320.SH) and are the controlling shareholder.
 Other information


     2. Natural person
     □Applicable √Not applicable

     3. Particulars about no controlling shareholder in the Company
     □Applicable √Not applicable

     4. Index and date of change in the controlling shareholder during the reporting period
     □Applicable √Not applicable

     5. Block diagram of ownership and control relation between the Company and the controlling shareholder
     √Applicable □Not applicable



                                                              CCCG

                         Shareholding 100%                                                Shareholding 59.91%

                             CCCC Hong Kong                                                CCCC

             Shareholding 17.4012%      Shareholding 12.5888%                             Shareholding 16.2393%

                                           Shanghai Zhenhua Heavy Industries, Co., Ltd.




2.Actual controller
     1.Legal person
     □Applicable √Not applicable

     2.Natural person
     □Applicable √Not applicable

     3.Particulars about no actual controller in the Company
     □Applicable √Not applicable

     4.Index and date of change in the actual controller during the reporting period
     □Applicable √Not applicable




40
    5.Block diagram of ownership and control relation between the Company and the actual controller
    √Applicable □Not applicable



                                                       SASAC

                                    Shareholding100%

                                                       CCCG

                   Shareholding100%                                                   Shareholding 59.91%

                        CCCC Hong Kong                                               CCCC

          Shareholding 17.4012%     Shareholding 12.5888%                            Shareholding 16.2393%

                                      Shanghai Zhenhua Heavy Industries, Co., Ltd.




    6. Control over the Company by the actual controller via trust or other ways of assets management
    □Applicable √Not applicable

3.Other information about the controlling shareholder and the actual controller
    □Applicable √Not applicable

V. Other corporate shareholders holding over 10% shares
    □Applicable √Not applicable

VI. Particulars about restriction on reduction in shares held
    □Applicable √Not applicable




Section VII                     Preference Shares


    □Applicable √Not applicable




                                                                                                             41
Section VIII                              Directors, Supervisors, Senior Management and Employees


I. Changes in shares held and remunerations
       (I) Changes in shares held by current and resigned directors, supervisors and senior executives during the
reporting period and their remunerations
       √Applicable □Not applicable
                                                                                                                                            Unit: share

                                                                                                                             Total
                                                                                               Amount                   remuneration     Remuneration
                                                                        Shares
                                                                                   Shares         of                   before tax from     from the
                                                 Starting   Expiry        held
                                                                                    held at    change Reason of         the Company         related
     Name       Title (note)      Sex      Age   date of    date of      at the
                                                                                   the end    in shares change            during the      party of the
                                                  tenure    tenure     beginning
                                                                                   of year      in the                    reporting       Company or
                                                                        of year
                                                                                                 year                    period (RMB          not
                                                                                                                            10000)
                                                                                                        Buying on
             Chairman of                                                                                secondary
                                                 June 26,   June 25,
Song Lianyu   the Board,          Male     49                                 0    427,200    427,200     market                 73.67        No
                                                   2018       2021
            Party secretary                                                                              and profit
                                                                                                        distribution
                  Director,
   Huang         President,                      June 26,   June 25,
                                  Male     44                                 0           0        0                             73.67        No
  Qingfeng      Deputy party                       2018       2021
                 secretary
  Zhang                                          June 26,   June 25,
                  Director        Male     59                                 0           0        0                                 0       Yes
 Hongwen                                           2018       2021
               Director, chief                   June 26,   June 25,
 Yan Yunfu                        Male     60                                 0           0        0                             58.94        No
                  engineer                         2018       2021
               Director, vice                    June 26,   June 25,
Liu Qizhong                       Male     55                                 0           0        0                             58.94        No
                 president                         2018       2021
               Director, vice                    June 26,   June 25,
 Dai Wenkai                       Male     52                                 0           0        0                             58.94        No
                president                          2018       2021
    Zhu                                          June 26,   June 25,
               Director, CFO      Male     50                                 0           0        0                             44.02        No
  Xiaohuai                                         2018       2021

      Zhao      Independent                      June 26,   June 25,
                                  Male     43                                 0           0        0                                 6        No
     Zhanbo        director                        2018       2021

                Independent                      June 26,   June 25,
 Ji Linhong                       Male     57                                 0           0        0                                 6        No
                   director                        2018       2021
                Independent                      June 26,   June 25,
     Ling He                      Male     67                                 0           0        0                             12.32        No
                   director                        2018       2021
                Independent                      June 26,   June 25,
 Yang Jun                         Male     62                                 0           0        0                             12.32        No
                   director                        2018       2021
                Independent                      June 26,   June 25,
 Bai Yunxia                      Female    46                                 0           0        0                             11.83        No
                   director                        2018       2021
                Supervisor,
               deputy party
                 secretary,
                Secretary of
                                                 June 26,   June 25,
Wang Cheng      Committee         Male     46                                 0           0        0                             51.53        No
                                                   2018       2021
               for Discipline
                Inspection,
                chairman of
               labour union

     Zhang                                       June 26,   June 25,                                       Profit
                Supervisor        Male     57                             20,259     24,311     4,052                            83.47        No
     Minghai                                       2018       2021                                      distribution




42
                                                                                                                                 Total
                                                                                                  Amount                    remuneration      Remuneration
                                                                         Shares
                                                                                      Shares         of                    before tax from      from the
                                                Starting      Expiry       held
                                                                                       held at    change Reason of          the Company          related
  Name          Title (note)     Sex     Age    date of       date of     at the
                                                                                      the end    in shares change             during the       party of the
                                                 tenure       tenure    beginning
                                                                                      of year      in the                     reporting        Company or
                                                                         of year
                                                                                                    year                     period (RMB           not
                                                                                                                                10000)
  Xiang                                         June 26,     June 25,
                Supervisor       Male     43                                      0          0          0                            72.27          No
 Xudong                                           2018         2021
                                                 Aug. 22,    June 25,
Liu Jianbo    Vice president     Male     56                                      0          0          0                            58.94          No
                                                  2018         2021
                                                 Aug. 22,    June 25,
 Zhou Qi      Vice president     Male     47                                      0          0          0                            58.94          No
                                                  2018         2021
                                                 Aug. 22,    June 25,                                          Profit
Chen Bin      Vice president     Male     45                                89,440    107,328      17,888                            58.94          No
                                                  2018         2021                                         distribution
  Shan                                           Aug. 22,    June 25,
              Vice president     Male     55                                      0          0          0                            58.94          No
 Jianguo                                          2018         2021
                                                 Aug. 22,    June 25,
Zhang Jian    Vice president     Male     50                                      0          0          0                            58.94          No
                                                  2018         2021
                                                 Aug. 22,    June 25,
 Fei Guo      Chief engineer     Male     57                                      0          0          0                            58.94          No
                                                  2018         2021
                  Chief                          Aug. 22,    June 25,
Li Ruixiang                      Male     44                                      0          0          0                            58.94          No
                economist                         2018         2021
                 General
               counsel and                       Aug. 22,    June 25,
  Sun Li                         Male     47                                      0          0          0                            58.94          No
              secretary of the                    2018         2021
                  board
                  Former
                                                 Apr. 21,    June 26,
 She Lian      independent       Male     60                                      0          0          0                                 6         No
                                                  2015         2018
                  director
                  Former
                                                 Apr. 21,    June 26,
 Gu Wei        independent       Male     62                                      0          0          0                                 6         No
                                                  2015         2018
                  director
  Total              /            /        /        /            /         109,699    558,839    449,140          /               1,107.44           /



   Name                                                                 Main working experiences

               Born in 1970, male, Ph.D., professor-level senior engineer. He began his career in September 1992 and successively served as the engineer,
               equipment leader of overseas projects, vice chief of Marine Machine Department, manager of Enterprise Development Department of CCCC
Song Lianyu    First Harbor Engineering Co., Ltd; the general manager of CCCC International Shipping Co., Ltd and the deputy general manager of the
               Equipment Manufacturing Marine Heavy Industry Department of China Communications Construction Co., Ltd. Now, her is the Chairman of
               the Board and Party secretary of the Company.

               Born in 1975, male, EMBA, senior engineer. He began his career in August 1996 and successively served as the quality project chief, director
               of field bridge office of quality management department; deputy general manager of after-sales department, general manager of Quality
  Huang
               Inspection Company; vice director of off-shore office, director of Quality Safety Department, director of Product Service Center and assistant
 Qingfeng
               president of the Company; vice president of the Company from Jan. 2005 and the executive vice president and director of Production and
               Project Management Center since 2014. Now, he is the director, president, deputy party secretary of the Company.

               Born in 1960, male, bachelor, senior engineer; engaged in work in August, 1983. He successively served as the deputy general manager
               of Overseas Division and manager of Integrated Department of Zhonggung Group, deputy general manager of Engineering Management
               Department and Operation & Management Department of China Communications Construction Co., Ltd, deputy general manager and
  Zhang
               general manager of Capital Construction Department (Dredging Department) and the executive general manger and general manager of Port
 Hongwen
               Dredging Business Department of CCCC, as well as the director, executive general manager, temporary member of the Party committee and
               non-executive director of CCCC Dredging (Group) Co., Ltd. Now, he is the general manager of CCCC Equipment Manufacturing & Marine
               Heavy Industry Department and the director of the Company.

               Born in 1959, male, EMBA, professor-level senior engineer. He successively served as the Vice Chief of Technical Department, manager
 Yan Yunfu     of Mechanical Design Department, deputy chief engineer, chief engineer and vice president of the Company, and President of Land Heavy
               Industry Equipment Design Institute, director of the Company since 2004. Now, he is the director and chief engineer of the Company.


               Born in 1964, male, bachelor degree, senior economist. He successively served as the vice manager and manager of Operating Department
Liu Qizhong
               and the director of the Company since 1997. Now, he is the director and vice president of the Company.




                                                                                                                                                           43
      Name                                                                 Main working experiences

                Born in 1967, male, master of physics, EMBA, senior engineer. He began his career in 1993 and served as the Vice Manger and Manager of
 Dai Wenkai
                Operating Department, vice chief economist and chief economist of the Company. Now, his is the director and vice president of the Company.

                Born in 1969, male, master of MBA, senior accountant. He began his career in 1991 and successively served as the deputy section manager
                of Financial Division of CCCC Shanghai Dredging Co., Ltd, deputy director of Budget and Finance Department, deputy manager, manager
Zhu Xiaohuai
                and member of commission for disciplinary inspection of Finance Department of CCCC Shanghai Dredging Co., Ltd, and the director, chief
                account and standing committee member of CCCC Shanghai Dredging Co. Ltd. Now, he served as the director and CFO of the Company.

                Born in 1976, Male, Ph. D. He had served as a teacher in School of Software, Peking University since 2005 and now he is a professor. He is
      Zhao
                mainly engaged in the research in Internet business model innovation and corporate development strategy. Now he acts as the independent
     Zhanbo
                director of the Company.

                Born in 1962, Male, Ph. D. He successively acted as the assistant and the lecturer of Department of Precision Instrument of Tsinghua
                University; assistant professor of Department of Precision Engineering of Faculty of Engineering of the University of Tokyo, the Postdoctoral
                Researcher in Ministry of Education, Culture, Sports, Science and Technology of Japan. He had acted as deputy director of Department of
                Precision Instrument of Tsinghua University, deputy director of Department of Mechanical Engineering of Tsinghua University, director of
 Ji Linhong
                Design Engineering Research Institute of Tsinghua University, director of Experiment & Teaching Center of Mechanical Engineering, deputy
                director of State Key Lab of Tribology , Tsinghua University and so on. Now he serves as a professor and a doctoral tutor in Department of
                Mechanical Engineering, Tsinghua University. He is mainly engaged in digitalized design and system optimization of complicated mechanical
                system and the intelligent and biological mechanical design. Now he acts as the independent director of the Company.

                Born in 1952, male, professor, senior editor (Senior professional title) of Liberation Daily, director of Shanghai Journalists Association,
                director of Shanghai Institute of Essays. He successively served as the member, assistant chief editor, director of Editing Department of the
     Ling He    democratic and legal magazine agency, vice director and director of Comment Department of Liberation Daily, main editor of Liberation Daily,
                chief editor of Liberty Forum; with honor of the first National 100 Journalists, China News first prize for three times, Shanghai News first prize
                for 15 times. Now, he is the independent director of the Company.

                Born in 1957, male, master degree. He successively served as intermediate and Senior court judge of Shanghai Court, president and
                members of the judicial committee member, Property Trade Operation Director of Shanghai United Property Rights Exchange. Now he is the
                assistant president of Shanghai United Property Rights Exchange, general manager of Beijing HQ, director of Financial Property Rights Trade
     Yang Jun   Center, arbitrator of China International Economic and Trade Arbitration Commission, Shanghai International Economic and Trade Arbitration
                Commission, arbitrator of Shanghai Arbitration Commission, Shanghai Financial Arbitration Court, expert of China domain name dispute
                resolution center, director of Intellectual Property Association of China Law Society, director of Company Law Research Society of Shanghai
                Law Society, director of Shanghai Patent/Trademark/Copyright Association, and the independent director of the Company.

                Born in Oct. 1973, female, Ph. D from Xiamen University, post-doctor in accounting of Guanggua School of Management, Peking University,
                professor of accounting, doctoral tutor, engaged in work in 1995. She successively acted as the assistant engineer of Kaiyuan Group under
 Bai Yunxia     Xi’an Jiaotong University, lecturer of School of Economics and Management of Tongji University, research scholar of CKGSB. Now, she acts
                as the director of Department of Accounting, School of Economics and Management, Tongji University and the research scholar of Investment
                Center of CKGSB, and the independent director of the Company.

                Born in 1973, male, undergraduate, senior political worker. Successively serving as the secretary of Committee of the Communist Youth
                League and secretary of Party Branch of No. 2 Engineering Co., Ltd of CCCC Third Harbor Engineering Co., Ltd; deputy director and director