China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
CHINA MERCHANTS PORT GROUP CO., LTD.
THE REPORT FOR THE THIRD QUARTER OF 2019
Date of Disclosure: 31 October 2019
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of China Merchants Port Group Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Bai Jingtao, the Company’s legal representative, Wen Ling, the Company’s Chief Financial
Officer, and Sun Ligan, the person-in-charge of the accounting organ hereby guarantee that
the Financial Statements carried in this Report are factual, accurate and complete.
Securities Times, Hong Kong Ta Kung Pao and the cninfo website are media designated by
the Company for information disclosure. All information disclosed by the Company on above
designated media shall prevail.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
1
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Definitions
Term Definition
The “Company”, “CMPort” China Merchants Port Group Co., Ltd., formerly named as Shenzhen Chiwan Wharf Holdings
or “we” Limited
CMG China Merchants Group Co., Limited
China Merchants Investment Development Company Limited, the Chinese name is “招商局投
CMID
资发展有限公司”
CMPort Holdings China Merchants Port Holdings Company Limited (00144.HK)
Zhanjiang Port Zhanjiang Port (Group) Co., Ltd.
Broadford Global Broadford Global Limited, a wholly-owned subsidiary of CMG Hong Kong
China Merchants Gangtong Development (Shenzhen) Co., Ltd., a Broadford Global
CMGD
wholly-owned subsidiary in Shenzhen
Lac Assal Lac Assal Investment Holding Company Limited
CM Qianhai Industrial Shenzhen China Merchants Qianhai Industrial Development Co., Ltd.
SIPG Shanghai International Port (Group) Co., Ltd.
TCP TCP Participaes S.A., Paranagua, Brazil
HIPG Hambantota International Port Group, Hambantota, Sri Lanka
Djibouti Asset Company KHOR AMBADO FZCO
SZSE Shenzhen Stock Exchange
CMG Finance China Merchants Group Finance Co., Ltd.
The “Articles of
The Articles of Association of China Merchants Port Group Co., Ltd.
Association”
The “Stock Listing Rules” The Stock Listing Rules of the Shenzhen Stock Exchange
The cninfo website www.cninfo.com.cn
TEU Twenty Foot Equivalent Unit
RMB Expressed in the Chinese currency of Renminbi
RMB’0,000 Expressed in tens of thousands of Renminbi
RMB’00,000,000 Expressed in hundreds of millions of Renminbi (unless otherwise specified)
2
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Part II Key Corporate Information
I Key Accounting Data and Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for the retrospective adjustments or restatements: 1. Changes to accounting policies. For details, please
refer to “XIII YoY Changes to Accounting Policies, Estimates and Methods” under “Part III Significant Events” in
this report; 2. A business combination under common control. The Company completed the issuance of shares to
the trading counterpart CMID on 25 December 2018 and took control of CMPort Holdings in form and in nature.
In accordance with the Accounting Standards for Business Enterprises No. 33-Consolidated Financial Statements,
the Company starts to include CMPort Holdings into the consolidated financial statements since December 2018.
Therefore, the Company adjusted the comparative financial data in the table below as required by the rules
governing business combinations under common control.
Change (%)
30 September 2019 31 December 2018
Restated
Total assets (RMB) 152,633,216,405.25 128,018,084,415.68 19.23%
Equity attributable to the listed
33,006,062,129.65 30,760,475,412.93 7.30%
company’s shareholders (RMB)
Q3 2019 YoY change (%) Q1~Q3 2019 YoY change (%)
Operating revenue (RMB) 3,178,406,039.64 22.75% 9,012,759,460.97 24.11%
Net profit attributable to the listed
171,091,424.23 -38.20% 2,470,272,754.81 175.43%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before 155,647,010.17 14.46% 725,052,340.93 59.93%
exceptional items (RMB)
Net cash generated from/used in
-- -- 3,956,552,986.35 26.97%
operating activities (RMB)
Basic earnings per share
0.095 -38.31% 1.377 175.40%
(RMB/share)
Diluted earnings per share
0.095 -38.31% 1.377 175.40%
(RMB/share)
Weighted average return on equity
0.52% -0.43% 7.74% 4.63%
(%)
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Total share capital up to the former trading date before the disclosure:
Total share capital up to the former trading date before the
1,793,412,378
disclosure (share)
Fully diluted EPS calculated by the newest share capital:
Fully diluted EPS calculated by the newest share capital
1.377
(RMB/share)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of impairment
4,172,553,224.00 -
allowance write-offs)
Government subsidies charged to current profit or loss (exclusive of
government subsidies given in the Company’s ordinary course of
93,398,328.01 -
business at fixed quotas or amounts as per the government’s uniform
standards)
Capital occupation charges on non-financial enterprises that are
26,105,690.91 -
recorded into current profit or loss
Gain or loss on fair-value changes in trading financial assets and
Gain or loss on fair value
liabilities, as well as derivative financial assets and liabilities &
changes in financial assets
income from disposal of trading financial assets and liabilities,
651,390,184.96 and liabilities at fair value
derivative financial assets and liabilities, as well as investments in
through profit or loss held in
other debt obligations (exclusive of effective portion of hedges that
this year
arise in the Company’s ordinary course of business)
Reverse of bad debt provision of accounts receivable and contract
886,165.84 -
assets individually conducting impairment test
Non-operating income and expense other than the above 4,111,751.77 -
The Company realized its
control over Zhanjiang Port in
this year and recognized the
investment income by fair
Other gains and losses that meet definition of nonrecurring gain/loss 722,688,249.35
value regarding the original
long-term equity investment
in Zhanjiang Port under
equity method
Less: Income tax effects 1,213,811,582.86 -
Minority interests effects (after tax) 2,712,101,598.10 -
Total 1,745,220,413.88 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
34,452 (including 23,286 Number of preferred shareholders
Number of ordinary shareholders at the
A-shareholders and 11,166 with resumed voting rights at the 0
period-end
B-shareholders) period-end (if any)
Top 10 shareholders
Nature of Shareholding Restricted
Name of shareholder Total shares held Pledged or frozen shares
shareholder percentage shares held
China Merchants Investment Foreign
64.05% 1,148,648,648 1,148,648,648 0
Development Company Limited legal person
China Merchants Gangtong State-owned
20.68% 370,878,000 0 0
Development (Shenzhen) Co., Ltd. legal person
State-owned
Broadford Global Limited 3.08% 55,314,208 0 0
legal person
CMBLSA RE FTIF TEMPLETON Foreign
1.80% 32,276,393 0 Unknown
ASIAN GRW FD GTI 5496 legal person
Foreign
NORGES BANK 0.16% 2,802,863 0 Unknown
legal person
China Merchants Securities (HK) State-owned
0.14% 2,580,267 0 Unknown
Co., Ltd. legal person
Domestic
Mai Shuqing natural 0.13% 2,376,747 0 Unknown
person
Domestic
Shen Huailing natural 0.08% 1,519,849 0 Unknown
person
VANGUARD EMERGING
Foreign
MARKETS STOCK INDEX 0.07% 1,326,082 0 Unknown
legal person
FUND
Domestic
Chen Zehong natural 0.07% 1,240,000 0 Unknown
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
China Merchants Gangtong Development RMB-denominated
370,878,000 370,878,000
(Shenzhen) Co., Ltd. ordinary stock
Domestically
Broadford Global Limited 55,314,208 55,314,208
listed foreign stock
CMBLSA RE FTIF TEMPLETON ASIAN Domestically
32,276,393 32,276,393
GRW FD GTI 5496 listed foreign stock
Domestically
NORGES BANK 2,802,863 2,802,863
listed foreign stock
Domestically
China Merchants Securities (HK) Co., Ltd. 2,580,267 2,580,267
listed foreign stock
RMB-denominated
Mai Shuqing 2,376,747 2,376,747
ordinary stock
Domestically
Shen Huailing 1,519,849 1,519,849
listed foreign stock
VANGUARD EMERGING MARKETS STOCK Domestically
1,326,082 1,326,082
INDEX FUND listed foreign stock
RMB-denominated
Chen Zehong 1,240,000 1,240,000
ordinary stock
Industrial and Commercial Bank of
RMB-denominated
China-Fullgoal China Securities Dividend Index 1,128,901 1,128,901
ordinary stock
Enhanced Securities Investment Fund
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a wholly-owned
subsidiary of Broadford Global Limited, and Broadford Global Limited is the
Related or acting-in-concert parties among the
controlling shareholder of China Merchants Investment Development Company
shareholders above
Limited. The Company does not know whether the other unrestricted shareholders
are related parties or not.
Top 10 ordinary shareholders involved in
N/A
securities margin trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases for the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Part III Significant Events
I Changes in Major Accounting Data and Financial Indicators for the Reporting Period，As
Well As Reasons for Such Changes
√ Applicable □ Not applicable
Item 30 September 2019 1 January 2019 Change (%) Explanation of changes
The inclusion of Zhanjiang Port as a new entity into
Notes receivable 183,280,331.85 11,608,669.43 1478.82%
the consolidated financial statements of this year
The inclusion of Zhanjiang Port as a new entity into
Accounts receivable 2,000,684,891.11 1,109,230,503.08 80.37%
the consolidated financial statements of this year
Recovery of shareholder loans provided for Djibouti
Other current assets 256,563,223.61 1,195,421,189.12 -78.54%
Asset Company in this year
Investments in other equity
576,268,518.53 247,848,314.30 132.51% An new investment in Lac Assal in this year
instruments
The execution of new standards governing leases in
this year and the inclusion of Zhanjiang Port as a
Right-of-use assets 7,800,820,483.13 6,549,564,031.55 19.10%
new entity into the consolidated financial statements
of this year
Comprehensively influenced by the inclusion of
Zhanjiang Port as a new entity into the consolidated
Fixed assets 25,876,417,875.48 17,477,797,429.30 48.05%
financial statements of this year and new standards
governing leases
Comprehensively influenced by the inclusion of
Zhanjiang Port as a new entity into the consolidated
Other non-current assets 2,090,965,196.70 395,191,485.98 429.10%
financial statements of this year and reclassification
of the land to be replaced located in Qianhaiwan
Comprehensively influenced by the inclusion of
Zhanjiang Port as a new entity into the consolidated
Short-term borrowings 9,508,679,077.29 3,427,365,512.21 177.43%
financial statements of this year and increase in
short-term borrowings out of operating capitals.
Recognition of taxes in relation to land integration
Taxes payable 1,589,840,943.85 345,183,422.42 360.58%
and reorganization in Qianhai in this year
Accrual of 2019 interim dividends for
Dividends payable 601,041,503.21 66,052,207.09 809.95% non-controlling interests by the main subsidiary
CMPort Holdings in this year
Comprehensively influenced by the inclusion of
Current portion of
5,331,155,487.58 2,903,320,877.97 83.62% Zhanjiang Port as a new entity into the consolidated
non-current liabilities
financial statements of this year and reclassification
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
of bonds payable due within one year.
Issue of SCP in this year and the inclusion of
Other current liabilities 1,462,750,847.15 602,659,721.80 142.72% Zhanjiang Port as a new entity into the consolidated
financial statements of this year
The execution of new standards governing leases in
this year and the inclusion of Zhanjiang Port as a
Leasing liabilities 1,703,624,315.56 1,020,239,824.73 66.98%
new entity into the consolidated financial statements
of this year
The inclusion of Zhanjiang Port as a new entity into
the consolidated financial statements of this year and
Deferred income 1,472,709,970.09 228,658,214.64 544.07%
a government subsidy for the western channel in the
current year
The inclusion of Zhanjiang Port as a new entity into
Deferred income tax
3,908,205,769.54 2,911,074,941.27 34.25% the consolidated financial statements of this year and
liabilities
withholding income tax from dividends in this year
Item Q1~Q3 2019 Q1~Q3 2018 Change (%) Explanation of changes
The inclusion of Zhanjiang Port as a new entity into
the consolidated financial statements of the current
Cost of sales 5,578,083,009.08 4,083,642,812.31 36.60% period, and the inclusion of TCP as a new entity in
the consolidation financial statements in February
2018
The inclusion of Zhanjiang Port as a new entity into
the consolidated financial statements of the current
Administrative expense 996,281,408.36 727,114,780.51 37.02% period, and the inclusion of TCP as a new entity in
the consolidation financial statements in February
2018
The Company took control of Zhanjiang Port in the
current period, and return on investment was
Investment income 3,437,560,891.43 2,334,080,699.12 47.28%
recognized and measured on the long-term equity
investment in Zhanjiang Port formerly at fair value
Gain on changes in fair Increase in net gains on fair value of trading
278,440,925.78 -682,729,854.10 140.78%
value financial assets held
Compensation income from land within the scope of
Asset disposal income 4,171,684,760.29 -3,636,782.41 114808.12%
land integration and reorganization in Qianhai
Income tax generated from the new land
Income tax expense 2,167,283,540.59 560,348,680.84 286.77%
compensation claims
Item Q1~Q3 2019 Q1~Q3 2018 Change (%) Explanation of changes
Cash received from other A government subsidy for the western channel in the
826,743,586.32 505,434,007.65 63.57%
operating activities current year
Payments for commodities The inclusion of Zhanjiang Port as a new entity into
2,607,802,429.06 1,938,269,025.06 34.54%
and services the consolidated financial statements of the current
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
period, and the inclusion of TCP as a new entity in
the consolidation financial statements in February
2018
The inclusion of Zhanjiang Port as a new entity into
the consolidated financial statements of the current
Cash paid to and for
1,884,322,010.85 1,299,781,660.28 44.97% period, and the inclusion of TCP as a new entity in
employees
the consolidation financial statements in February
2018
The inclusion of Zhanjiang Port as a new entity into
the consolidated financial statements of the current
Taxes paid 697,239,343.97 508,671,731.22 37.07% period, and the inclusion of TCP as a new entity in
the consolidation financial statements in February
2018
Difference in times for dividend of SIPG in two
Return on investment 1,409,672,809.32 460,620,212.63 206.04%
years
Cash received from the
disposal of fixed assets, Compensation income from land within the scope of
6,135,808,673.12 8,214,912.89 74591.10%
intangible assets and other land integration and reorganization in Qianhai
long-lived assets
Comprehensively influenced by recovery of
principal of structured deposits, by recovery of a
Cash received from other
4,062,782,125.98 121,000,000.00 3257.67% borrowing by shareholders and the inclusion of
investing activities
Zhanjiang Port as a new entity into the consolidated
financial statements of the current period
The inclusion of Zhanjiang Port as a new entity into
Payments for the
the consolidated financial statements of the current
acquisition of fixed assets,
2,451,110,448.40 1,647,474,893.85 48.78% period, and the inclusion of TCP as a new entity in
intangible assets and other
the consolidation financial statements in February
long-lived assets
2018
Payments for capital increase in CM Qianhai
Payments for investments 7,828,684,852.29 3,558,918,904.65 119.97%
Industrial in this year
Net payments for the
acquisition of subsidiaries - 9,317,382,826.55 -100.00% Payments for projects of TCP and HIPG last year
and other business units
Cash paid in other The purchase of structured deposits not repaid on
1,303,951,129.78 25,463,390.79 5020.89%
investing activities demand in this year
Borrowings obtained 12,838,230,272.62 30,277,177,842.54 -57.60% Decrease in borrowings obtained in this year
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
1. Index to Information Disclosure
In the reporting period, the Company disclosed the following significant events on Securities Times, Ta Kung Pao
and http://www.cninfo.com.cn:
Announcement
No. Date Title
No.
1 2019-054 3 July 2019 Announcement on Implementation of Equity Assignation of 2018
2 2019-055 11 July 2019 Announcement on Semi-annual Performance Estimation of 2019
Announcement on Voluntary Disclosure of the Business Volume Data of June
3 2019-056 16 July 2019
2019
4 2019-057 16 August 2019 Announcement on Voluntary Disclosure of the Business Volume Data of July 2019
5 2019-058 16 August 2019 Announcement on Resignation of Securities Affairs Representative
Announcement on Voluntary Disclosure of Signing the
6 2019-059 30 August 2019
Strategic Cooperation Frame Agreement
7 2019-060 31 August 2019 Announcement on the Resolutions of the 6th Meeting of the 9th Board of Directors
Announcement on the Resolutions of the 6th Meeting of the 9th Supervisory
8 2019-061 31August 2019
Committee
2019-062 31August 2019 Abstract of Interim Report of 2019
9
2019-062 31August 2019 Abstract of Interim Report of 2019 (English version)
10 2019-063 31August 2019 Announcement on Changes in Accounting Policies
11 2019-064 31August 2019 Announcement on Issuing the Interim Results of Controlled Subsidiaries in 2019
Announcement on Online Investor Seminar of Semi-annual Performance in 2019
12 2019-065 31August 2019 and Participating in a Unified Investor Day for the Listed Companies of 2019 in
Shenzhen
Announcement on Resolutions of the 8th Extraordinary Meeting of 9th Board of
13 2019-066 7 September 2019
Directors in 2019
Announcement on Providing Financial Aid and Connected transaction to Holding
14 2019-067 7 September 2019
Subsidiaries
Announcement on Voluntary Disclosure of the Business Volume Data of August
15 2019-068 16 September 2019
2019
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
10
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
No such cases in the Reporting Period.
IV Operating Performance Forecast for 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit made during the period from the
beginning of the year to the end of the next reporting period, as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Cumulativ
Gain/loss on
Variety e fair Purchase Sold in Gain/loss in
Code of Accounting fair value
of Name of Initial Beginning value d in the the the Ending carrying Accountin Funding
securitie measureme changes in the
securitie securities investment cost carrying value changes Reportin Reportin Reporting value g item resources
s nt model Reporting
s recorded g Period g Period Period
Period
into equity
Trading
Fair value 1,361,414,474. 114,517,739.9 38,672,165.1 1,520,382,032. Self-owne
601018 592,183,095.14 - 0.00 0.00 financial
Stock Ningbo Port method 58 0 1 52 d
assets
Trading
Qingdao Fair value -16,959,420.5 15,697,928.2 Self-owne
06198 124,405,138.80 190,401,046.01 - 0.00 0.00 178,625,688.00 financial
Stock method 0 8 d
Port assets
Trading
Qingdao Fair value 253,120,000.0 42,526,400.0 Self-owne
601298 331,404,250.30 413,280,000.00 - 0.00 0.00 666,400,000.00 financial
Stock method 0 0 d
Port assets
Investment
s in other
Ninghu Fair value 442,500.0 Self-owne
600377 1,120,000.00 9,800,000.00 - 0.00 0.00 460,000.00 10,390,000.00 equity
Stock Expressway method 0 d
instrument
s
Investment
s in other
Petrochemic Fair value Self-owne
400032 3,500,000.00 382,200.00 - - 0.00 0.00 - 382,200.00 equity
Stock method d
al A1 instrument
s
Fair value Investment Self-owne
400009 27,500.00 17,000.00 - - 0.00 0.00 - 17,000.00
Stock Guang Jian 1 method s in other d
11
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
equity
instrument
s
Other investment securities at
- -- - - - - - - - -- --
the period-end
1,052,639,984. 1,975,294,720. 350,678,319.4 442,500.0 97,356,493.3 2,376,196,920.
Total -- 0.00 0.00 -- --
24 59 0 0 9 52
VI Wealth Management Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Type of
Way of
Date communication Index to main information communicated
communication
party
1 July 2019 to By phone/
Individual Main inquiry: basic business condition, investments and
30 September 2019 written inquiry
financial condition of the Company;
Meeting in
5 September 2019 Institution Materials provided: brochure of the Company;
Investment Bank
Index: SZSE EasyIR
By one-on-one
25 September 2019 Institution (http://irm.cninfo.com.cn/ssessgs/S001872/index.html)
meeting
Times of communications 25
Number of institutions communicated with 2
Number of individuals communicated with 23
Number of other communication parties 0
Tip-offs or leakages of substantial confidential information
No
during the communications
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Progress Made on Internal Control
The focuses of risk control for Q3 2019 are as follows:
1. Establishment and Evaluation of Internal Control System
(1) Establishment of internal control system
In Q3 2019, the Company issued the Rules for Audit Committee under the Board of Directors of China Merchants
Port Group Co., Ltd., among others, improved its management level control and compliance requirements for the
Company and finished the first draft of the eighteen-business-process involved in the management of the
headquarters of the Company. Currently, the Company is seeking for opinions on the said first draft from all
departments and plans to publish it at the end of the year.
(2) Carrying out the establishment and evaluation of internal control system on a regular basis
In Q3 2019, all units conducted system carding and self-evaluation by sampling regarding internal control
pursuant to the annual internal control system establishment and evaluation work program. The Company’s work
group of risk control reexamined all units’ working papers regarding internal control and reported problems in risk
control for the Q2 2019 so as to continuously promote all units’ internal control system establishment and
evaluation more regulated. As of now, the Company and its subsidiaries completed the amendments to 129
systems, increased 109 systems and found 38 defects of internal control among which 35 have been rectified. For
the three defects not rectified, the rectification plan has been formulated.
(3) Popping up online of the risk control information system platform
In accordance with the work program of risk control information system, the headquarters of the Company
completed the entry of initial data including the risk database, progress system, self-evaluation papers, internal
control defects and risk issues. Moreover, the Company also put forward advices about optimizing the risk control
information platform and feedbacks, which provided strong supports for the formal popping up online of the
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
system at the end of the year.
2. Risk Management
(1) Major risks for 2019 were monitored
According to the division of risk responsibility and fixed risk management strategies (solutions), combined the
risk matters and annual emphasis of the Company together, tracked and monitored the top ten risks for 2019
timely, no significant risk matter was occurred in the third quarter of the Company.
(2) The top ten risks assessment of 2020 was carried out.
The units included in the risk management system shall carry out the top ten risks assessment of 2020. Based on
the top ten risks list formed through the completion of the top ten risks selection in every unit respectively, China
Merchants Port Group Co., Ltd. gave scores in two rounds through organizing the leaders of the Company, all
departments in headquarters and management layer in subsidiaries, and selected the risks ranking top ten of 2020.
The Company completed the division of responsibility and has drawn the management strategies and measures for
risk matters.
(3) Specific prevention and control for risks
As for the third quarter of 2019, underscoring the specific prevention and control and investigation of risks
matters, the Company tracked dynamic risks of six innovation-type investment projects and control the risk
exposure strictly; and investigated the headquarters of ports and financing trading business of all management and
control enterprises, which there is no financing trading business yet.
(4) Construction of risk management tools
According to the work plan, the work program of risk preference degree and tolerance was implemented, and the
risk limitation index (including six business sectors, such as market, credit, management, operation, debt paying
ability and investment, and 15 specific indexes) was further formulated. From two dimensions between index
conforming to the Company’s actual operation and index able to put into operation (the index assess is unified
with the existing system assess), the internal control audit department, finance management department and
operation management department have made the second-round discussion and communication, and the quota
index of risk preference degree of China Merchants Port Group Co., Ltd. (first draft) was taken shape, further
improving the construction of risk management and control in advance of the Company.
XII Deposits in and Loans Provided by a Finance Company
14
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
The Proposal on Signing Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. was reviewed and
approved on the 2nd Meeting of the 9th Board of Directors held by the Company on 23 August 2017, in which, the
Company was agreed to signed the Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd.
(renamed China Merchants Group Finance Co., Ltd. from August 2017) with the period of three years.
The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement to Financial
Service Agreement with China Merchants Group Finance Co., Ltd and the Related-party Transactions was
reviewed and approved on the 5th Meeting of the 9th Board of Directors held by the Company on 28 March 2019,
in which, the Company was agreed to signed Supplementary Agreement to Financial Service Agreement with
China Merchants Group Finance Co., Ltd.
At the end of the Reporting Period, deposits in and loans provided by China Merchants Group Finance Co., Ltd.
were as follows:
Unit: RMB’0,000
Item Beginning balance Increase Decrease Ending balance
I. Deposits in China Merchants Group Finance Co.,
49,413.12 610,048.94 608,092.64 51,369.41
Ltd.
II. Loans provided by China Merchants Group
77,500.00 129,248.39 125,800.00 80,948.39
Finance Co., Ltd.
XIII Explain Change of the Accounting Policy, Accounting Estimate and Measurement
Methods as Compared with the Financial Reporting of Last Year
The Accounting Standards for Business Enterprises No. 21 – Lease (hereinafter referred to as “New lease
standard”) revised and issued by Ministry of Finance on 7 December 2018 required that enterprises listed both
domestically and overseas and enterprises listed overseas who prepare the financial statements by International
Financial Reporting Standards or Accounting Standards for Business Enterprises shall implement it form 1
January 2019, and other enterprises implementing the Accounting Standards for Business Enterprises shall
implement it from 1 January 2021. According to the requirements of Ministry of Finance, enterprises whose
subsidiaries are listed overseas and prepare the financial statements by International Financial Reporting
Standards or Accounting Standards for Business Enterprises can implement the new lease standard in advance.
The Company, in accordance with the requirements of Ministry of Finance, implemented the new lease standard
from 1 January 2019. For details, see Announcement on Changes in Accounting Policies (Announcement No.:
2019-031) published by the Company on http://www.cninfo.com.cn dated 30 March 2019. According to the
15
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
regulations of the new standards, the Company did not adjust the information during comparative period, executed
the accumulative influence number of the standard for the first time, and adjusted the beginning retained earnings
and the amount of other related items in financial statements.
On 30 April 2019, Ministry of Finance revised and issued the Format of Financial Statements of General
Enterprises in 2019 with partial adjustment to the format of the financial statements. The alternation of format of
the financial statements of the Company was executed in the interim report of 2019. For details, see the
Announcement on Changes in Accounting Policies (Announcement No.: 2019-063) published by the Company on
http://www.cninfo.com.cn dated 31 August 2019.
On 19 September 2019, Ministry of Finance revised and issued the Format of Consolidated Financial Statements
(2019 edition) with partial adjustment to the format of the financial statements based on the Format of Financial
Statements of General Enterprises in 2019 and Format of Financial Statements of Financial Enterprises in 2018.
The alternation of format of the financial statements of the Company was executed in the report for the third
quarter on 30 September 2019. For details, see the Announcement on Changes in Accounting Policies
(Announcement No.: 2019-076) published by the Company on http://www.cninfo.com.cn dated 31 October 2019.
16
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Unit: RMB
Item 30 September 2019 31 December 2018(restated)
Current assets:
Cash and bank balances 7,570,300,546.84 7,077,396,895.72
Notes receivable 183,280,331.85 11,608,669.43
Accounts receivable 2,000,684,891.11 1,109,230,503.08
Prepayments 114,094,741.55 124,404,862.87
Other receivables 861,375,359.75 766,518,078.72
Including: Dividends receivable 294,284,140.79 259,804,145.16
Inventories 177,571,554.18 108,567,270.02
Assets classified as held for sale 115,356,162.94 115,356,162.94
Current portion of non-current assets 880,016,146.03 25,952,956.76
Other current assets 256,563,223.61 1,195,421,189.12
Total current assets 12,159,242,957.86 10,534,456,588.66
Non-current assets:
Long-term receivables 990,395,940.04 793,046,240.11
Long-term equity investments 57,121,941,857.95 50,176,577,263.40
Investments in other equity instruments 576,268,518.53 247,848,314.30
Other non-current financial assets 2,384,841,199.32 2,087,872,081.94
Investment property 5,812,827,368.38 5,890,146,989.51
Fixed assets 25,876,417,875.48 22,994,190,880.43
Construction in progress 7,341,547,179.03 5,499,426,090.06
Engineering material 15,937,900.47 -
Right-of-use assets 7,800,820,483.13
Intangible assets 22,056,504,382.35 20,761,018,044.54
R&D expense 19,805,798.67 -
Goodwill 8,030,512,615.98 8,335,895,842.35
Long-term prepaid expense 250,832,615.65 235,706,437.21
Deferred income tax assets 104,354,515.71 66,708,157.19
Other non-current assets 2,090,965,196.70 395,191,485.98
Total non-current assets 140,473,973,447.39 117,483,627,827.02
Total assets 152,633,216,405.25 128,018,084,415.68
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Item 30 September 2019 31 December 2018(restated)
Current liabilities:
Short-term borrowings 9,508,679,077.29 3,427,365,512.21
Notes payable 26,960,775.03 -
Accounts payable 473,848,698.02 429,120,690.97
Receipts in advance 25,702,237.90 29,170,709.86
Contractual liabilities 214,370,909.35 49,993,895.50
Employee benefits payable 624,724,714.81 433,489,555.40
Taxes payable 1,589,840,943.85 345,183,422.42
Other payables 2,445,068,275.38 1,690,124,901.29
Including: Dividends payable 601,041,503.21 66,052,207.09
Non-current liabilities due with one year 5,331,155,487.58 2,903,320,877.97
Other current liabilities 1,462,750,847.15 602,659,721.80
Total current liabilities 21,703,101,966.36 9,910,429,287.42
Non-current liabilities:
Long-term borrowings 7,561,578,571.50 6,971,479,842.18
Bonds payable 21,158,771,697.12 22,097,467,096.40
Lease liabilities 1,703,624,315.56
Long-term payables 1,294,397,897.63 1,294,190,118.18
Long-term payroll payable 723,418,097.82 375,325,127.65
Provisions 65,541,678.61 34,951,392.27
Deferred income 1,472,709,970.09 228,658,214.64
Deferred income tax liabilities 3,908,205,769.54 2,911,074,941.27
Other non-current liabilities 3,764,284,123.53 3,777,582,522.86
Total non-current liabilities 41,652,532,121.40 37,690,729,255.45
Total liabilities 63,355,634,087.76 47,601,158,542.87
Owners’ equity:
Share capital 1,793,412,378.00 1,793,412,378.00
Capital reserves 19,855,375,587.87 19,426,912,957.05
Other comprehensive income -336,867,814.35 88,925,978.57
Special reserves 23,183,673.64 8,231,080.43
Surplus reserves 527,175,908.67 527,175,908.67
Retained earnings 11,143,782,395.82 8,915,817,110.21
Total equity attributable to parent company shareholders’ 33,006,062,129.65 30,760,475,412.93
Minority interests 56,271,520,187.84 49,656,450,459.88
Total shareholders’ equity 89,277,582,317.49 80,416,925,872.81
Total liabilities and owners’ equity 152,633,216,405.25 128,018,084,415.68
The financial statements from Page 17 to Page 28 have been signed by:
Legal representative: Bai Jingtao
Chief Financial Officer: Wen Ling
Person-in-charge of the accounting organ: Sun Ligan
18
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 September 2019 31 December 2018(restated)
Current assets:
Cash and bank balances 192,908,139.78 389,841,854.93
Accounts receivable - 23,444,175.65
Other receivables 483,802,383.93 651,050,233.08
Including: Dividends receivable 207,259,421.40 329,153,465.70
Inventories - 165,553.46
Other current assets 1,305,257.21 1,563,111.61
Total current assets 678,015,780.92 1,066,064,928.73
Non-current assets:
Long-term receivables 61,004,284.75 11,004,284.75
Long-term equity investments 29,604,604,658.12 28,544,261,576.96
Investments in other equity instruments 527,671,090.00 151,746,700.00
Investment property - 12,685,959.06
Fixed assets 720,454.10 190,804,655.63
Construction in progress - 2,500,843.87
Intangible assets 55,298,062.81 57,755,603.44
Long-term prepaid expense - 3,785,801.32
Total non-current assets 30,249,298,549.78 28,974,545,425.03
Total assets 30,927,314,330.70 30,040,610,353.76
Current liabilities:
Short-term borrowings - 377,716,000.00
Accounts payable - 13,125,624.29
Contractual liabilities - 92,003.00
Employee benefits payable - 26,605,190.52
Taxes payable 145,016,113.63 18,826,587.50
Other payables 592,711,718.01 717,536,924.18
Including: Dividends payable 197,739,983.93 37,608,540.65
Non-current liabilities due with one year 344,721,753.45 299,531,506.81
Other current liabilities 1,009,776,712.33 200,000,000.00
Total current liabilities 2,092,226,297.42 1,653,433,836.30
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Item 30 September 2019 31 December 2018(restated)
Non-current liabilities:
Long-term payables - 151,710,000.00
Deferred income tax liabilities 34,326,875.00 34,179,375.00
Total non-current liabilities 34,326,875.00 185,889,375.00
Total liabilities 2,126,553,172.42 1,839,323,211.30
Owners’ equity:
Share capital 1,793,412,378.00 1,793,412,378.00
Capital reserves 25,517,679,153.52 25,517,647,180.04
Other comprehensive income 103,080,625.00 102,638,125.00
Special reserves 300,328.61 470,465.59
Surplus reserves 527,175,908.67 527,175,908.67
Retained earnings 859,112,764.48 259,943,085.16
Total shareholders’ equity 28,800,761,158.28 28,201,287,142.46
Total liabilities and owners’ equity 30,927,314,330.70 30,040,610,353.76
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
3. Consolidated Income Statement for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Revenue 3,178,406,039.64 2,589,330,353.39
Including: Operating revenue 3,178,406,039.64 2,589,330,353.39
2. Costs and expenses 3,027,193,739.93 2,252,237,596.22
Including: Cost of sales 1,970,062,313.17 1,469,181,593.93
Taxes and surcharges 36,181,418.94 61,078,941.92
Administrative expense 349,036,690.00 229,694,042.28
R&D expense 32,360,952.71 25,511,552.02
Finance costs 639,552,365.11 466,771,466.07
Including: Interest expense 537,231,578.17 446,929,334.02
Interest income 66,340,293.70 82,025,472.89
Add: Other income 40,977,175.67 3,919,675.91
Return on investment (“-” for loss) 812,511,406.87 797,780,466.05
Including: Share of profit or loss of joint ventures and associates 800,883,928.29 783,255,125.89
Gain on changes in fair value (“-” for loss) -365,186,387.23 -211,390,461.27
Credit impairment loss (“-” for loss) -300,605.98 1,026,232.21
Asset impairment loss (“-” for loss) 96,054.00 344,445.40
Asset disposal income (“-” for loss) 1,827,593.76 -14,115,664.40
3. Operating profit (“-” for loss) 641,137,536.80 914,657,451.07
Add: Non-operating income 7,715,394.72 12,017,193.20
Less: Non-operating expense 9,154,852.76 54,161,889.78
4. Total profit (“-” for loss) 639,698,078.76 872,512,754.49
Less: Income tax expense 149,312,790.43 183,848,659.57
5. Net profit (“-” for net loss) 490,385,288.33 688,664,094.92
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 490,385,288.33 688,664,094.92
5.1.2 Net profit from discontinued operations (“-” for net loss) - -
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the parent 171,091,424.23 276,846,536.50
5.2.2 Net profit attributable to minority interests 319,293,864.10 411,817,558.42
6. Other comprehensive income, net of tax -226,046,371.51 230,262,503.84
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Attributable to owners of the Company as the parent -93,181,249.64 -291,146,836.69
Item Q3 2019 Q3 2018
6.1 Items that will not be reclassified to profit or loss -138,951.49 210,986.32
6.1.1 Other comprehensive income that will not be reclassified to profit
123,548.51 -
or loss under the equity method
6.1.2 Changes in the fair value of investments in other equity
-262,500.00 210,986.32
instruments
6.2 Items that will be reclassified to profit or loss -93,042,298.15 -291,357,823.01
6.2.1 Other comprehensive income that will be reclassified to profit or
-14,204,312.79 4,289,906.88
loss under the equity method
6.2.2 Changes in the fair value of investments in other debt
- 14,759.46
obligations
6.2.3 Differences arising from the translation of foreign
-78,837,985.36 -295,662,489.35
currency-denominated financial statements
Attributable to non-controlling interests -132,865,121.87 521,409,340.53
7. Total comprehensive income 264,338,916.82 918,926,598.76
Attributable to owners of the Company as the parent 77,910,174.59 -14,300,300.19
Attributable to minority interests 186,428,742.23 933,226,898.95
8. Earnings per share
8.1 Basic earnings per share 0.095 0.154
8.2 Diluted earnings per share 0.095 0.154
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
Item Q3 2019 Q3 2018
1. Operating revenue 2,255,597.58 64,302,993.32
Less: Cost of sales 3,935,675.51 37,535,635.06
Taxes and surcharges 250,040.88 677,409.72
Administrative expense 4,351,326.63 17,624,077.09
R&D expense - 176,574.54
Finance costs 9,001,535.76 14,549,332.38
Including: Interest expense 9,942,358.24 10,699,557.51
Interest income 3,565,984.24 4,258,772.27
Add: Other income 67,712.05 -
Return on investment (“-” for loss) 25,630,162.05 8,731,799.29
Including: Share of profit or loss of joint ventures and associates 14,807,577.05 8,291,799.29
Asset disposal income (“-” for loss) 502,371.58 -223,673.61
2. Operating profit (“-” for loss) 10,917,264.47 2,248,090.21
Add: Non-operating income 0.10 281,382.11
Less: Non-operating expense 13,063.89 83,085.02
3. Total profit (“-” for loss) 10,904,200.68 2,446,387.30
Less: Income tax expense -3,681,490.33 -
4. Net profit (“-” for net loss) 14,585,691.01 2,446,387.30
4.1 Net profit from continuing operations (“-” for net loss) 14,585,691.01 2,446,387.30
4.2 Net profit from discontinued operations (“-” for net loss) - -
5. Other comprehensive income, net of tax -262,500.00 7,500.00
5.1 Items that will not be reclassified to profit or loss -262,500.00 7,500.00
5.1.1 Other comprehensive income that will not be reclassified to
- -
profit or loss under the equity method
5.1.2 Changes in the fair value of investments in other equity
-262,500.00 7,500.00
instruments
5.2 Items that will be reclassified to profit or loss - -
5.2.1 Other comprehensive income that will be reclassified to profit
- -
or loss under the equity method
5.2.2 Differences arising from the translation of foreign
- -
currency-denominated financial statements
6. Total comprehensive income 14,323,191.01 2,453,887.30
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
5. Consolidated income statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 9,012,759,460.97 7,261,668,394.11
Including: Operating revenue 9,012,759,460.97 7,261,668,394.11
2. Operating costs and expenses 8,312,063,125.76 6,219,286,752.54
Including: Cost of sales 5,578,083,009.08 4,083,642,812.31
Taxes and surcharges 132,656,930.36 144,120,181.47
Administrative expense 996,281,408.36 727,114,780.51
R&D expense 92,379,788.00 73,575,367.64
Finance costs 1,512,661,989.99 1,190,833,610.60
Including: Interest expense 1,575,186,876.47 1,158,918,040.82
Interest income 205,694,115.16 192,227,447.71
Add: Other income 114,069,681.43 30,522,988.68
Investment income (“-” for loss) 3,437,560,891.43 2,334,080,699.12
Including: Share of profit or loss of joint ventures and associates 2,596,836,906.37 2,280,857,082.51
Gain on changes in fair value (“-” for loss) 278,440,925.78 -682,729,854.10
Credit impairment loss (“-” for loss) 7,398,528.80 2,815,675.99
Asset impairment loss (“-” for loss) 121,105.16 344,445.40
Asset disposal income (“-” for loss) 4,171,684,760.29 -3,636,782.41
3. Operating profit (“-” for loss) 8,709,972,228.10 2,723,778,814.25
Add: Non-operating income 22,095,013.06 57,655,859.65
Less: Non-operating expense 16,661,227.05 77,146,226.10
4. Total profit (“-” for loss) 8,715,406,014.11 2,704,288,447.80
Less: Income tax expense 2,167,283,540.59 560,348,680.84
5. Net profit (“-” for net loss) 6,548,122,473.52 2,143,939,766.96
5.1 By operating continuity
5.1.1 Net profit from continuing operations (“-” for net loss) 6,548,122,473.52 2,143,939,766.96
5.1.2 Net profit from discontinued operations (“-” for net loss) - -
5.2 By ownership
5.2.1 Net profit attributable to owners of the Company as the parent 2,470,272,754.81 896,884,942.15
5.2.2 Net profit attributable to minority interests 4,077,849,718.71 1,247,054,824.81
6. Other comprehensive income, net of tax -1,142,062,566.11 243,716,774.54
Attributable to owners of the Company as the parent -425,793,792.72 -283,022,884.64
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Item Q1~Q3 2019 Q1~Q3 2018
6.1 Items that will not be reclassified to profit or loss 15,491,398.99 -141,513.68
6.1.1 Other comprehensive income that will not be reclassified to
15,048,898.99 -
profit or loss under the equity method
6.1.2 Changes in the fair value of investments in other equity
442,500.00 -141,513.68
instruments
6.2 Items that will be reclassified to profit or loss -441,285,191.71 -282,881,370.96
6.2.1 Other comprehensive income that will be reclassified to profit
-39,983,917.59 3,870,980.01
or loss under the equity method
6.2.2 Differences arising from the translation of foreign
-401,301,274.12 -286,752,350.97
currency-denominated financial statements
Attributable to non-controlling interests -716,268,773.39 526,739,659.18
7. Total comprehensive income 5,406,059,907.41 2,387,656,541.50
Attributable to owners of the Company as the parent 2,044,478,962.09 613,862,057.51
Attributable to minority interests 3,361,580,945.32 1,773,794,483.99
8. Earnings per share
8.1 Basic earnings per share 1.377 0.500
8.2 Diluted earnings per share 1.377 0.500
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating revenue 92,032,385.87 183,725,970.79
Less: Cost of sales 76,074,166.52 104,439,721.38
Taxes and surcharges 1,636,938.34 2,346,306.03
Administrative expense 41,809,584.57 55,287,511.43
R&D expense - 176,574.54
Finance costs 37,124,831.40 25,943,344.61
Including: Interest expense 32,276,680.84 27,074,710.19
Interest income 10,414,141.65 17,169,968.62
Add: Other income 279,433.82 -
Investment income (“-” for loss) 1,012,144,142.26 54,148,074.29
Including: Share of profit or loss of joint ventures and
52,654,083.88 45,919,099.29
associates
Asset disposal income (“-” for loss) 502,371.58 -1,157,680.60
2. Operating profit (“-” for loss) 948,312,812.70 48,522,906.49
Add: Non-operating income 35,710.36 1,115,668.26
Less: Non-operating expense 81,092.18 202,335.13
3. Total profit (“-” for loss) 948,267,430.88 49,436,239.62
Less: Income tax expense 144,323,146.24 395,773.33
4. Net profit (“-” for net loss) 803,944,284.64 49,040,466.29
4.1 Net profit from continuing operations (“-” for net loss) 803,944,284.64 49,040,466.29
4.2 Net profit from discontinued operations (“-” for net loss) - -
5. Other comprehensive income, net of tax 442,500.00 -577,500.00
5.1 Items that will not be reclassified to profit or loss 442,500.00 -577,500.00
5.1.1 Other comprehensive income that will not be reclassified
- -
to profit or loss under the equity method
5.1.2 Changes in the fair value of investments in other equity
442,500.00 -577,500.00
instruments
5.2 Items that will be reclassified to profit or loss - -
5.2.1 Other comprehensive income that will be reclassified to
- -
profit or loss under the equity method
5.2.2 Differences arising from the translation of foreign
- -
currency-denominated financial statements
6. Total comprehensive income 804,386,784.64 48,462,966.29
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 8,883,879,809.23 6,907,275,967.42
Receipts of tax refunds 2,983,000.88 6,523,416.76
Cash received from other operating activities 826,743,586.32 505,434,007.65
Subtotal of cash generated from operating activities 9,713,606,396.43 7,419,233,391.83
Payments for commodities and services 2,607,802,429.06 1,938,269,025.06
Cash paid to and on behalf of employees 1,884,322,010.85 1,299,781,660.28
Taxes paid 697,239,343.97 508,671,731.22
Cash paid in other operating activities 567,689,626.20 556,430,920.15
Subtotal of cash used in operating activities 5,757,053,410.08 4,303,153,336.71
Net cash generated from operating activities 3,956,552,986.35 3,116,080,055.12
2. Cash flows from investing activities:
Cash receipts from disposals and recovery of investments - 200,000.00
Return on investment 1,409,672,809.32 460,620,212.63
Cash received from the disposal of fixed assets, intangible assets and other
6,135,808,673.12 8,214,912.89
long-term assets
Cash received from the disposal of subsidiaries and other business units 1,000,000.00 -
Cash received from other investing activities 4,062,782,125.98 121,000,000.00
Subtotal of cash generated from investing activities 11,609,263,608.42 590,035,125.52
Payments for the acquisition of fixed assets, intangible assets and other
2,451,110,448.40 1,647,474,893.85
long-term assets
Payments for investments 7,828,684,852.29 3,558,918,904.65
Net payments for the acquisition of subsidiaries and other business units - 9,317,382,826.55
Cash paid in other investing activities 1,303,951,129.78 25,463,390.79
Subtotal of cash used in investing activities 11,583,746,430.47 14,549,240,015.84
Net cash generated from investing activities 25,517,177.95 -13,959,204,890.32
3. Cash flows from financing activities:
Capital contributions received 27,255,000.00 40,100,000.00
Including: Capital contributions by minority interests to subsidiaries 27,255,000.00 40,100,000.00
Borrowings obtained 12,838,230,272.62 30,277,177,842.54
Cash generated from other financing activities - 3,879,245,683.44
Subtotal of cash generated from financing activities 12,865,485,272.62 34,196,523,525.98
Repayments of borrowings 11,791,203,049.88 20,097,481,238.26
Payments for interest and dividends 2,903,723,201.62 2,516,995,474.80
Including: Dividends paid by subsidiaries to minority interests 1,343,615,386.61 694,934,596.99
Cash used in other financing activities 281,985,995.17 142,123,745.90
Subtotal of cash used in financing activities 14,976,912,246.67 22,756,600,458.96
Net cash generated from financing activities -2,111,426,974.05 11,439,923,067.02
4. Effect of foreign exchange rate changes on cash and cash equivalents 18,235,446.81 -15,665,859.94
5. Net increase in cash and cash equivalents 1,888,878,637.06 581,132,371.88
Add: Cash and cash equivalents, beginning of the period 5,373,281,504.75 7,729,460,082.75
6. Cash and cash equivalents, end of the period 7,262,160,141.81 8,310,592,454.63
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities and rendering of services 104,712,136.96 173,217,442.24
Cash received from other operating activities 7,971,877.19 478,013,625.50
Subtotal of cash generated from operating activities 112,684,014.15 651,231,067.74
Payments for commodities and services 35,832,461.34 51,308,565.98
Cash paid to and on behalf of employees 81,295,085.51 92,735,879.63
Taxes paid 19,133,226.24 5,009,988.48
Cash paid in other operating activities 278,977,499.75 544,437,740.05
Subtotal of cash used in operating activities 415,238,272.84 693,492,174.14
Net cash generated from operating activities -302,554,258.69 -42,261,106.40
2. Cash flows from investing activities:
Return on investment 281,458,359.20 444,717,054.92
Cash received from the disposal of fixed assets, intangible assets
- 352,864.00
and other long-term assets
Cash received from other investing activities 228,867,355.24 -
Subtotal of cash generated from investing activities 510,325,714.44 445,069,918.92
Payments for the acquisition of fixed assets, intangible assets and
1,916,637.68 8,448,540.50
other long-term assets
Payments for investments 375,334,390.00 -
Net payments for the acquisition of subsidiaries and other business
18,825,000.00 149,709,800.00
units
Cash paid in other investing activities 235,800,000.00 -
Subtotal of cash used in investing activities 631,876,027.68 158,158,340.50
Net cash generated from investing activities -121,550,313.24 286,911,578.42
3. Cash flows from financing activities:
Borrowings obtained 1,660,000,000.00 764,630,000.00
Subtotal of cash generated from financing activities 1,660,000,000.00 764,630,000.00
Repayments of borrowings 1,365,720,000.00 300,000,000.00
Payments for interest and dividends 63,755,911.40 859,343,226.23
Cash used in other financing activities 4,089,602.56 683,524.96
Subtotal of cash used in financing activities 1,433,565,513.96 1,160,026,751.19
Net cash generated from financing activities 226,434,486.04 -395,396,751.19
4. Effect of foreign exchange rate changes on cash and cash
736,370.74 -2,127,897.82
equivalents
5. Net increase in cash and cash equivalents -196,933,715.15 -152,874,176.99
Add: Cash and cash equivalents, beginning of the period 389,841,854.93 230,039,345.73
6. Cash and cash equivalents, end of the period 192,908,139.78 77,165,168.74
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New Standards
Governing Financial Instruments, Revenue or Leases from 2019
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item 31 December 1 January 2019 Adjusted
Current assets: 2018(restated)
Cash and bank balances 7,077,396,895.72 7,077,396,895.72 -
Notes receivable 11,608,669.43 11,608,669.43 -
Accounts receivable 1,109,230,503.08 1,109,230,503.08 -
Prepayments 124,404,862.87 81,845,182.30 -42,559,680.57
Other receivables 766,518,078.72 766,518,078.72 -
Including: Dividends receivable 259,804,145.16 259,804,145.16 -
Inventories 108,567,270.02 108,567,270.02 -
Assets classified as held for sale 115,356,162.94 115,356,162.94 -
Current portion of non-current assets 25,952,956.76 25,952,956.76 -
Other current assets 1,195,421,189.12 1,195,421,189.12 -
Total current assets 10,534,456,588.66 10,491,896,908.09 -42,559,680.57
Non-current assets:
Long-term receivables 793,046,240.11 793,046,240.11 -
Long-term equity investments 50,176,577,263.40 50,176,577,263.40 -
Investments in other equity instruments 247,848,314.30 247,848,314.30 -
Other non-current financial assets 2,087,872,081.94 2,087,872,081.94 -
Investment property 5,890,146,989.51 5,890,146,989.51 -
Fixed assets 22,994,190,880.43 17,477,797,429.30 -5,516,393,451.13
Construction in progress 5,499,426,090.06 5,499,426,090.06 --
Right-of-use assets 6,549,564,031.55 6,549,564,031.55
Intangible assets 20,761,018,044.54 20,761,018,044.54 -
Goodwill 8,335,895,842.35 8,335,895,842.35 -
Long-term prepaid expense 235,706,437.21 235,706,437.21 -
Deferred income tax assets 66,708,157.19 66,708,157.19 -
Other non-current assets 395,191,485.98 395,191,485.98 -
Total non-current assets 117,483,627,827.02 118,516,798,407.44 1,033,170,580.42
Total assets 128,018,084,415.68 129,008,695,315.53 990,610,899.85
29
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Item 31 December 1 January 2019 Adjusted
Current liabilities: 2018(restated)
Short-term borrowings 3,427,365,512.21 3,427,365,512.21 -
Accounts payable 429,120,690.97 429,120,690.97 -
Receipts in advance 29,170,709.86 29,170,709.86 -
Contractual liabilities 49,993,895.50 49,993,895.50 -
Employee benefits payable 433,489,555.40 433,489,555.40 -
Taxes payable 345,183,422.42 345,183,422.42 -
Other payables 1,690,124,901.29 1,690,124,901.29 -
Including: Dividends payable 66,052,207.09 66,052,207.09 -
Non-current liabilities due with one year 2,903,320,877.97 3,027,360,245.85 124,039,367.88
Other current liabilities 602,659,721.80 602,659,721.80 -
Total current liabilities 9,910,429,287.42 10,034,468,655.30 124,039,367.88
Non-current liabilities:
Long-term borrowings 6,971,479,842.18 6,971,479,842.18 -
Bonds payable 22,097,467,096.40 22,097,467,096.40 -
Lease liabilities 1,020,239,824.73 1,020,239,824.73
Long-term payables 1,294,190,118.18 1,252,860,200.23 -41,329,917.95
Long-term payroll payable 375,325,127.65 375,325,127.65 -
Provisions 34,951,392.27 34,951,392.27 -
Deferred income 228,658,214.64 228,658,214.64 -
Deferred income tax liabilities 2,911,074,941.27 2,911,074,941.27 -
Other non-current liabilities 3,777,582,522.86 3,777,582,522.86 -
Total non-current liabilities 37,690,729,255.45 38,669,639,162.23 978,909,906.78
Total liabilities 47,601,158,542.87 48,704,107,817.53 1,102,949,274.66
Owners’ equity:
Share capital 1,793,412,378.00 1,793,412,378.00 -
Capital reserves 19,426,912,957.05 19,426,912,957.05 -
Other comprehensive income 88,925,978.57 88,925,978.57 -
Specific reserve 8,231,080.43 8,231,080.43 -
Surplus reserves 527,175,908.67 527,175,908.67 -
Retained earnings 8,915,817,110.21 8,877,958,652.78 -37,858,457.43
Total equity attributable to parent company 30,760,475,412.93 30,722,616,955.50 -37,858,457.43
owners interests
Minority 49,656,450,459.88 49,581,970,542.50 -74,479,917.38
Total shareholders’ equity 80,416,925,872.81 80,304,587,498.00 -112,338,374.81
Total liabilities and owners’ equity 128,018,084,415.68 129,008,695,315.53 990,610,899.85
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018(restated) 1 January 2019 Adjusted
Current assets:
Cash and bank balances 389,841,854.93 389,841,854.93 -
Accounts receivable 23,444,175.65 23,444,175.65 -
Other receivables 651,050,233.08 651,050,233.08 -
Including: Dividends receivable 329,153,465.70 329,153,465.70 -
Inventories 165,553.46 165,553.46 -
Other current assets 1,563,111.61 1,563,111.61 -
Total current assets 1,066,064,928.73 1,066,064,928.73 -
Non-current assets:
Long-term receivables 11,004,284.75 11,004,284.75 -
Long-term equity investments 28,544,261,576.96 28,544,261,576.96 -
Investments in other equity instruments 151,746,700.00 151,746,700.00 -
Investment property 12,685,959.06 12,685,959.06 -
Fixed assets 190,804,655.63 190,804,655.63 -
Construction in progress 2,500,843.87 2,500,843.87 -
Right-of-use assets 11,966,380.80 11,966,380.80
Intangible assets 57,755,603.44 57,755,603.44 -
Long-term prepaid expense 3,785,801.32 3,785,801.32 -
Total non-current assets 28,974,545,425.03 28,986,511,805.83 11,966,380.80
Total assets 30,040,610,353.76 30,052,576,734.56 11,966,380.80
Current liabilities:
Short-term borrowings 377,716,000.00 377,716,000.00 -
Accounts payable 13,125,624.29 13,125,624.29 -
Contractual liabilities 92,003.00 92,003.00 -
Employee benefits payable 26,605,190.52 26,605,190.52 -
Taxes payable 18,826,587.50 18,826,587.50 -
Other payables 717,536,924.18 717,536,924.18 -
Including: Dividends payable 37,608,540.65 37,608,540.65 -
Non-current liabilities due with one year 299,531,506.81 305,454,311.08 5,922,804.27
Other current liabilities 200,000,000.00 200,000,000.00 -
Total current liabilities 1,653,433,836.30 1,659,356,640.57 5,922,804.27
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China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
Item 31 December 2018(restated) 1 January 2019 Adjusted
Non-current liabilities:
Lease liabilities 6,369,170.76 6,369,170.76
Long-term payables 151,710,000.00 151,710,000.00 -
Deferred income tax liabilities 34,179,375.00 34,179,375.00 -
Total non-current liabilities 185,889,375.00 192,258,545.76 6,369,170.76
Total liabilities 1,839,323,211.30 1,851,615,186.33 12,291,975.03
Owners’ equity:
Share capital 1,793,412,378.00 1,793,412,378.00 -
Capital reserves 25,517,647,180.04 25,517,647,180.04 -
Other comprehensive income 102,638,125.00 102,638,125.00 -
Special reserves 470,465.59 470,465.59 -
Surplus reserves 527,175,908.67 527,175,908.67 -
Retained earnings 259,943,085.16 259,617,490.93 -325,594.23
Total shareholders’ equity 28,201,287,142.46 28,200,961,548.23 -325,594.23
Total liabilities and owners’ equity 30,040,610,353.76 30,052,576,734.56 11,966,380.80
Note for adjustment:
The Company began to implement the new lease standards 1 January 2019. On that implementation date, the Company conducted
financial accounting treatment in situations where lease liabilities shall be measured by the present value discounted by lessee’s
incremental borrowing rate on the first execution day or right-of-use assets shall be measured by new lease standards if it’s from the
beginning date of lease term.
In the balance sheet, assets and liabilities increased at the same time due to the existence of operational lease contract, but it did not
have significant impacts on the Company’s financial situations.
2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New Standards
Governing Financial Instruments or Leases from 2019
□ Applicable √ Not applicable
32
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2019
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
China Merchants Port Group Co., Ltd
31 October 2019
33
