1、 2016 Annual Report 1 / 507 Stock code: 600320 900947 The company referred to: Shanghai Zhenhua Heavy, Zhenhua B share Shanghai Zhenhua Heavy Industries Co., Ltd. Annual Report 2016 Important Notice I. Hereunder, the Board of Directors, the Supervisory Board, directors, supervisors and senior execut
2、ives of the Company guarantee that the Annual Report is of authenticity, accuracy and integrity; it contains no major omission, false record or serious misleading statement; they will be responsible both individually and jointly for any of above guaranty. II. All the directors of the company attend
3、meeting of the board of directors. III. Ernst not to convert reserve into capital stock. VI. Risks declaration of prospective statements Applicable Not applicable VII. Whether non-operational fund occupancy by the controller and its related parties exists with the Company? No. VIII. Whether there is
4、 external guaranty provision violating regulation or procedural decision-making within the Company? No. IX. Significant risk remind Applicable Not applicable The Company has described the risks in the annual report in details and the investors shall pay attention to that. Refer to the related chapte
5、rs in the directors report for the description of the risk of the Company. X. Others Applicable Not applicable 2016 Annual Report 2 / 507 Contents Chapter I Definition . 3 Chapter II Company Profiles and Key Financial Indicator 3 Chapter III Business Profile . 9 Chapter IV Discussion and Analysis of
6、 the Board of Directors 10 Chapter V Substantial Events 23 Chapter VI Equity Movement and Shareholders Profile . 46 Chapter VII Preferred stock information . 53 Chapter VIII Directors, Supervisors, Senior Executives and Employees 54 Chapter IX Company Governance . 64 Chapter X Company Bond Informati
7、on . 68 Chapter XI Financial Statements . 71 Chapter XII Backup Documents Contents . 507 2016 Annual Report 3 / 507 Chapter I Definition I. Definition Terms used in this report means the following except for otherwise specified: Definition of frequently used terms The Company Refers to Shanghai Zhen
8、hua Heavy Industries Co., Ltd. CCCC, controlling shareholder Refers to China Communications Co., Ltd. Effective controller Refers to China Communications Construction Group Chapter II Company Profiles and Key Financial Indicator I. Company information Statutory company name in Chinese Shanghai Zhenh
9、ua Heavy Industries Co., Ltd. Statutory Chinese Abbreviation of the Company Shanghai Zhenhua Heavy English name of the Company SHANGHAI ZHENHUA HEAVY INDUSTRIES CO.,LTD. English Abbreviation of the Company ZPMC Legal representative Song Hailiang II. Contact information Board secretary Securities Aff
10、air Agent Name Wang Jue Li Min Address 3261 Dongfang Road, Shanghai 3261 Dongfang Road, Shanghai Tel. 021-50390727 021-50390727 Fax 021-31193316 021-31193316 Email IR IR III. Basic information of the Company Registered address 3470, South Pudong Road, Shanghai Post code 200125 2016 Annual Report 4 /
11、 507 Office address 3261 Dongfang Road, Shanghai Post code 200125 Website Email zpmc IV. Information disclosure and reference Designated media for information Shanghai Securities News, Hong Kong Wen Wei Po Website designated by China Security Regulatory Commission for disclosure of annual report Ann
12、ual report available at of the Company Securities and Law Affairs Office V. Stock Profiles of the Company Stock Profiles of the Company Short form of Stock type Stock exchange listed at Short form of stock Share code Stock before change A-share Shanghai Stock Exchange Shanghai Zhenhua Heavy 600320 Z
13、PMC Industries B-share Shanghai Stock Exchange Zhenhua B-share 900947 - VI. Others CPAs employed by the Company(Domestic) Title Ernst self-produced crane rental business, sales of the company products; international shipment by available machine special transportation ships, steel structure engineer
14、ing professional contracting (operate the business if the related license is required). II. Description of the massive change in main assets of the company during the reporting period ApplicableNot applicable III. Analysis on the core competence during the reporting period Applicable Not applicable
15、There is no significant change in core competitiveness of the Company during the reporting period. 2016 Annual Report 10 / 507 Chapter IV Discussion and Analysis of the Board of Directors I. Discussion and analysis of the Board During the reporting period, facing the complicated situation both at ho
16、me and abroad, the Company Board of Director and the management led all the employees to deeply implement “4321” and “1521” strategy and fully apply the 24 letters principle: “firm foundations, always innovate, adjust structure, change mode, integrate resources, reinforce management, develop culture
17、 and increase quality”. With focus on the enhancement of operation quality and core competitiveness, the Company aim to build a world-class company with international competition strength base on the assurance of the companys stable and healthy continuous development in new state, reform and develop
18、ment. During the reporting period, the market structure was effectively adjusted, and the reform as deepened, the layout was gradually optimized and the ability to allocate the global resources was improved. Various business sectors achieved remarkable results while the profit increased steadily. Th
19、e company made new records in the port machinery market, now the products were sold in 97 countries and regions in the world. Especially, the Quay Cranes occupied the 82% market share in the global market counted by a famous English magazine-World Cargo News, which saw the peak since the company was founded in 1992.Though the global marine industry still developed slowly, the Company even made progress by strategies adjustment, the Company successfully produced 1000t wind turbine installation vessels, crane ships with autopilot and all-direction propelle
