China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2021-020
CHINA MERCHANTS PORT GROUP CO., LTD.
ANNUAL REPORT 2020 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2020 Annual Report of China Merchants Port Group
Co., Ltd. (hereinafter referred to as the “Company”). In order for a full understanding of the
Company’s operating results, financial position and future development plans, investors should
carefully read the aforesaid full text on the media designated by the China Securities Regulatory
Commission (the “CSRC”).
This Summary is prepared in both Chinese and English. Should there be any discrepancy between
the two versions, the Chinese version shall prevail.
All the Company’s directors have attended the Board meeting for the review of this Report and its
summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting
Period:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan as follows: based on 1,922,365,124 shares, a cash
dividend of RMB3.80 (tax inclusive) per 10 shares is to be distributed to shareholders, with no
bonus issue from either profit or capital reserves.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting
Period :
□ Applicable √ Not applicable
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Please refer to the 2020 annual report for the abbreviation mentioned in this summary.
Part II Key Corporate Information
1. Stock Profile
Stock name CM Port Group/CM Port Group B Stock code 001872/201872
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Li Yubin (Acting) Hu Jingjing
24/F, China Merchants Port Plaza, 1 24/F, China Merchants Port Plaza, 1
Address Gongye 3rd Road, Zhaoshang Street, Gongye 3rd Road, Zhaoshang Street,
Nanshan, Shenzhen, PRC Nanshan, Shenzhen, PRC
Fax +86 755 26886666 +86 755 26886666
Tel. +86 755 26828888 +86 755 26828888
Email address Cmpir@cmhk.com Cmpir@cmhk.com
2. Main business of the Company during the reporting period
1. Main business scope and business models
The Company is principally engaged in the handling, warehousing and transportation of containers
and bulk cargoes, as well as the provision of other ancillary services. It principally operates 24
container berths and 18 bulk cargo berths in the ports in West Shenzhen and Dongguan Machong, 9
container berths, 2 bulk cargo berths, 10 general cargo berths, and 1 coal-handling specific berth in
Shantou Port, 2 container berths and 33 bulk cargo berths in Zhanjiang Port, 4 multi-purpose berths
in Shunde Port, 2 container berths and 6 bulk cargo berths in Zhangzhou Port, 4 container berths in
Ningbo Daxie, 4 container berths in CICT, Sri Lanka, 4 multi-purpose berths, 2 oil berths and 4
container berths in HIPG, Sri Lanka, 3 container berths in LCT, Togo, and 4 container berths in TCP,
Brazil. Moreover, the Company invests in container hubs in Shanghai and Tianjin and expands its
layout to ports in Asia, Africa, Europe, Oceania, South America and North America.
The major business segments of China Merchants Port Group Co., Ltd. are as follows:
Business
Applications
Segments
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Container handling and warehousing: the Company provides ship
berthing, loading and discharging services to ship companies, offers
container storage service to ship companies and cargo owners and
provides overhead box services to tractor companies. The Company
Cargo handling also engages in the businesses of division or merger of cargoes in
and containers, container leasing and container maintenance;
warehousing
Bulk cargo handling and warehousing: the Company is engaged in bulk
cargo handling and transportation in port zones, as well as storage
services in yards. The major types of cargoes handled include food,
steel, woods and sandstones.
The ancillary port-related services of the Company mainly include
Ancillary
tugboat berthing assistance and barge services at the arrival of ships to
port-related
the ports, tallying in the course of cargo handling, and supply of shore
services
power and freshwater for vessels.
The Company provides various services for clients (including logistics
companies, trading companies or cargo owners), for example,
Bonded
warehouse/yard leasing, loading and unloading in warehouses/yards,
logistics
customs clearance and division or merger of cargoes at terminals. It
operations
also provides documentation services for tractors arriving or leaving the
bonded logistics parks.
2. Development stage and cyclical characteristic of the industry in which the Company
operates and its industry position during the reporting period
The port industry is a crucial cornerstone industry for national economic and social development,
and is closely linked to global economy and trade. In 2020, as the COVID-19 pandemic spread
across the world, the global economy took a heavy hit, resulting in a complex and unfavorable
international political and economic landscape. In the first half of the year, the shrinking seaborne
freight volume of global container throughput, due to the pandemic, posed challenges to port
production. During the second half of the year, most of the countries reopened their economy, so
the port and shipping market began to recover. With the full resumption of operation and production
in China, import and export rebounded by degrees and domestic port production grew steadily. The
pandemic has also accelerated the digitalization of the port and shipping industry, which will bring
new development opportunities for cost reduction, efficiency enhancement and innovation in the
business model.
The Company is the largest port developer, investor and operator in the PRC and the leading
comprehensive port service provider in the world, with a well-developed port network at major hub
locations along coastal China. It has also successfully established presences in Asia, Africa, Europe,
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Mediterranean, Oceania, South America and North America. By its proactive, sound and efficient
operating style, the Company capitalizes on its global port portfolio, professional management
experience, the self-developed state-of-the-art terminal operation system and integrated logistics
management platform for exports and imports, thereby providing its customers with timely and
efficient port and maritime logistics services along with comprehensive and modern integrated
logistics solutions. In addition, the Company also invests in bonded logistics operation and launches
integrated park development business, facilitates the transformation and upgrade of port industry,
develops comprehensive port services, increases its industry competitiveness, and creates greater
value through the synergies of the existing terminal network.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
2020-over-
2020 2019 2018
2019 change
Operating
12,618,529,996.02 12,123,829,423.74 4.08% 9,703,394,622.58
revenue (RMB)
Net profit
attributable to
the listed
2,065,322,969.66 2,898,192,168.84 -28.74% 1,090,418,910.77
company’s
shareholders
(RMB)
Net profit
attributable to
the listed
company’s
shareholders 1,262,830,563.26 1,037,766,875.23 21.69% 516,155,803.81
before
exceptional
gains and
losses (RMB)
Net cash
generated
from/used in
5,495,800,917.01 5,501,873,415.94 -0.11% 4,288,575,424.84
operating
activities
(RMB)
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Basic earnings
per share 1.07 1.59 -32.70% 0.61
(RMB/share)
Diluted
earnings per
1.07 1.59 -32.70% 0.61
share
(RMB/share)
Weighted
average return 5.66% 8.71% -3.05% 3.88%
on equity (%)
Change of 31
31 December 2020 31 December 2019 December 2020 over 31 31 December 2018
December 2019 (%)
Total assets
168,543,611,777.21 156,696,917,845.87 7.56% 128,018,084,415.68
(RMB)
Equity
attributable to
the listed
37,117,806,052.18 35,972,804,419.42 3.18% 30,760,475,412.93
company’s
shareholders
(RMB)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 2,886,025,618.74 3,036,471,539.74 3,239,264,119.14 3,456,768,718.40
Net profit attributable to the
149,871,785.99 482,926,799.84 642,339,845.93 790,184,537.90
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders
199,867,940.76 344,723,973.78 605,513,230.59 112,725,418.13
before exceptional gains and
losses
Net cash generated from/used in
847,165,371.60 1,224,260,773.32 1,665,387,875.49 1,758,986,896.60
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or
semiyearly reports.
□ Yes √ No
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting
Rights as well as Holdings of Top 10 Shareholders
Unit: share
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Number of
preferred
Number of
shareholders
ordinary
Number of Number of preferred with resumed
shareholders at
ordinary shareholders with voting rights at
shareholders at
32,872 the month-end 32,743 resumed voting rights at 0
the month-end
0
prior to the
the period-end the period-end (if any) prior to the
disclosure of this
disclosure of
Report
this Report (if
any)
5% or greater shareholders or top 10 shareholders
Increase/dec
Shareholdi Total shares
Name of Nature of rease in the Restricted Unrestricted Shares in pledge or
ng held at the
shareholder shareholder Reporting shares held shares held frozen
percentage period-end
Period
CHINA
MERCHANTS
PORT
Foreign legal
INVESTMENT 59.75% 1,148,648,648 0 1,148,648,648 0 0
person
DEVELOPMENT
COMPANY
LIMITED
CHINA
MERCHANTS
GANGTONG State-owned
19.29% 370,878,000 0 0 370,878,000 0
DEVELOPMENT legal person
(SHENZHEN)
CO., LTD.
SHENZHEN
INFRASTRUCTU
RE
INVESTMENT
FUND-SHENZHE
Fund and
N
wealth
INFRASTRUCTU 3.37% 64,850,182 0 0 64,850,182 0
management
RE
products
INVESTMENT
FUND
PARTNERSHIP
(LIMITED
PARTNERSHIP)
CHINA-AFRICA
State-owned
DEVELOPMENT 3.33% 64,102,564 0 0 64,102,564 0
legal person
FUND
BROADFORD
State-owned
GLOBAL 2.88% 55,314,208 0 0 55,314,208 0
legal person
LIMITED
CMBLSA RE
FTIF
Foreign legal
TEMPLETON 0.54% 10,410,926 -19,565,670 0 10,410,926 Unknown
ASIAN GRW FD person
GTI 5496
Foreign legal
NORGES BANK 0.15% 2,802,863 0 0 2,802,863 Unknown
person
HONG KONG
SECURITIES Foreign legal
CLEARING 0.14% 2,707,901 1,522,020 0 2,707,901 Unknown
COMPANY LTD. person
CHINA
MERCHANTS State-owned
SECURITIES 0.14% 2,606,355 93,000 0 2,606,355 Unknown
(HK) CO., LTD. legal person
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Domestic
MAI SHUQING 0.11% 2,129,247 -247,500 0 2,129,247 Unknown
natural person
Strategic investors or general legal
person becoming top-ten
N/A
shareholders due to placing of new
shares (if any)
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary
Related or acting-in-concert parties of Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of
among the shareholders above China Merchants Port Investment Development Company Limited. The Company does not
know whether the other unrestricted shareholders are related parties or not.
Above shareholders involved in
entrusting/being entrusted and None
giving up voting rights
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
CHINA MERCHANTS RMB
GANGTONG DEVELOPMENT 370,878,000 ordinary 370,878,000
(SHENZHEN) CO., LTD. share
SHENZHEN INFRASTRUCTURE
INVESTMENT
FUND-SHENZHEN RMB
INFRASTRUCTURE 64,850,182 ordinary 64,850,182
INVESTMENT FUND share
PARTNERSHIP (LIMITED
PARTNERSHIP)
RMB
CHINA-AFRICA
64,102,564 ordinary 64,102,564
DEVELOPMENT FUND
share
Domesti
cally
BROADFORD GLOBAL
55,314,208 listed 55,314,208
LIMITED
foreign
share
Domesti
cally
CMBLSA RE FTIF TEMPLETON
10,410,926 listed 10,410,926
ASIAN GRW FD GTI 5496
foreign
share
Domesti
cally
NORGES BANK 2,802,863 listed 2,802,863
foreign
share
RMB
HONG KONG SECURITIES
2,707,901 ordinary 2,707,901
CLEARING COMPANY LTD.
share
Domesti
cally
CHINA MERCHANTS
2,606,355 listed 2,606,355
SECURITIES (HK) CO., LTD.
foreign
share
RMB
MAI SHUQING 2,129,247 ordinary 2,129,247
share
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
SHEN ZHEN QIAN HAI HUA
RMB
SHAN CAPITAL CO.,Ltd-HUA
2,005,091 ordinary 2,005,091
SHAN YONG XU PRIVATE
share
EQUITY MANAGEMENT
Related or acting-in-concert parties
among top 10 unrestricted public
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary
shareholders, as well as between
of Broadford Global Limited. The Company does not know whether the other unrestricted
top 10 unrestricted public
shareholders are related parties or not.
shareholders and top 10
shareholders
Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any) (see note 4)
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were
outstanding before the date of this Report’s approval or were due but could not be redeemed in full?
√ Yes No
(1) Basic Information of the Corporate Bonds
Bonds
balance Interest
Name Abbr. Code Release date Maturity date Way of redemption
(RMB’0,0 rate
00)
2020 Public Simple interest is
Offering of adopted and
Corporate calculated by year.
Bonds of No compound
China 20 CMPort 01 149170 7 July 2020 8 July 2023 200,000 3.36% interest is calculated.
Merchants Interests are paid
Port Group once every year and
Co., Ltd. (for principals paid in
qualified lump sum at
investors) maturity. In the last
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
(Phase I) installment, the
interests are paid
together with
principal repayment.
Listed or transferred trading
List on the SZSE.
place of the Company bonds
The Company’s bonds are publicly issued to eligible investors who comply with the Measures
Appropriate arrangement of the for Issuance and Trading of Corporate Bonds and have opened an eligible A-share securities
investors account with Shenzhen Branch of China Securities Depository and Clearing Co., Ltd.
(CSDC).
Interest payment during the
During the Reporting Period, “20 CMPort 01” did not enter the payment period.
Reporting Period
Execution of the relevant
regulations during the
Reporting Period such as the
affiliated option clause of the
Not applicable
issuers or investors, special
clauses such as the
exchangeable regulations of the
Company bonds (if applicable)
(2) Latest Rating and Rating Change
On 24 June 2020, China Chengxin International Credit Rating Co., Ltd. (CCXI) issued a credit
rating notice (XPWHZ [2019] No. G564). CCXI granted the corporate credit rating of AAA to the
Company with a rating outlook of Stable, and the credit rating of AAA to the “2020 Public
Offering of Corporate Bonds of China Merchants Port Group Co., Ltd. (for qualified investors)
(Phase I)”.
During the Reporting Period, there was no rating difference in the corporate credit ratings of other
bonds and debt financing instruments issued by the Company in China.
(3) The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB ’0,000
Item 2020 2019 Increase/decrease
EBITDA 1,176,301.96 1,576,181.91 -25.37%
Current ratio 82.99% 68.44% 14.55%
Debt/asset ratio 37.30% 39.38% -2.08%
Quick ratio 82.27% 68.00% 14.27%
Debt/EBITDA ratio 18.71% 25.54% -6.83%
Interest cover (times) 3.38 5.09 -33.60%
Cash-to-interest cover (times) 4.14 3.95 4.81%
EBITDA-to-interest cover
5.84 7.42 -21.29%
(times)
Debt repayment ratio (%) 100.00% 100.00% -
Interest payment ratio (%) 100.00% 100.00% -
Main reason of the above accounting data and the financial indicators with the YoY change
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
exceeded 30%
√ Applicable □ Not applicable
The interest cover (times) declined 33.60% compared with last year mainly due to a decrease in
total profit.
Part III Operating Performance Discussion and Analysis
I Overview
1. External Environment Analysis
(1) Macroeconomic environment
In 2020, the increasingly complex international environment was characterized by the significant
increase in uncertainties and the far-reaching and unprecedented impact brought by COVID-19.
According to the “World Economic Outlook” report published by the International Monetary Fund
in January 2021, the global economy is expected to shrink by 3.5% year-on-year in 2020.
Developed economies and emerging economies are expected to decline by 4.9% and 2.4%
respectively, while the America and Eurozone economies are expected to record a decrease of 3.4%
and 7.2% respectively due to the severe impact from COVID-19 pandemic. The COVID-19
pandemic started to spread across East and Southeast Asia in early 2020. Since the second quarter,
America and Europe have become the pandemic epicenters and witnessed the second and third
waves of the outbreak, posing serious challenges to global economic recovery. Facing the
complicated and difficult international environment, China organized and promoted pandemic
prevention and control along with economic and social development. Its efforts not only effectively
facilitated the restoration of normal production and everyday life, but also yielded significant
strategic achievements in disease prevention and control. In the meantime, China accelerated the
establishment of the new development pattern in which the domestic economic cycle is the
mainstay and the domestic and international economic cycles boost each other. As a result, the
national economy recovered steadily and recorded an annual GDP growth of 2.3% in 2020, making
China the only major economy with positive economic growth in the world. In the second half of
2020, the infrastructure constructions, along with other fixed asset investments, provided greater
supports to economy recovery and China recorded better-than-expected growth in foreign trade
driven by regional trade and cooperation. Consumption demand gradually picked up and the
economy showed positive signs of recovery. Overall, China’s economy maintained its upward trend
in the long-run. To achieve high-quality economic growth, China will intensify the supply-side
11
China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
restructuring and pay attention to demand-side management in the meantime. According to the
statistics published by the General Administration of Customs, China’s total import and export
value amounted to RMB32.16 trillion in 2020, representing an increase of 1.9% year-on-year.
Among which, the export value was RMB17.93 trillion, representing an increase of 4.0%
year-on-year, while the import value was RMB14.23 trillion, representing a decrease of 0.7%
year-on-year. Trade surplus amounted to RMB3.7 trillion, representing an increase of 27.4%
year-on-year.
(2) Market environment of the port and shipping industry
In 2020, the global container shipping market suffered from volatile demand. During the first half
of the year, the container shipping market was severely impacted by the pandemic, which resulted
in the idling of shipping capacity to a certain extent. In the second half of the year, various countries
implemented economic stimulus policies and commerce demand rebounded. These factors, coupled
with high demand in traditional peak season and the shortage of containers, led to ongoing strong
demand in the container shipping market and the utilization of idle capacity in a gradual pace. The
significant improvement in business performances of shipping companies in general was driven by
rising freight rates.
The COVID-19 pandemic led to the decline in global port container throughput in 2020. According
to data from Alphaliner, the global container port throughput amounted to 827 million TEUs in
2020, down by 1.4% year-on-year. Benefiting from the success in domestic pandemic prevention
and control, China’s import and export for foreign trade stabilized rapidly and continued to grow,
while the domestic port production maintained an upward trend in general. According to the
information published by the Ministry of Transport of the People’s Republic of China, the
accumulated port container throughput in China amounted to 264 million TEUs in 2020,
representing a year-on-year increase of 1.2%.
2. Port Business Review
(1) Overview of port business
In 2020, the Company’s ports handled a total container throughput of 121.71 million TEUs, up by
7.8% year-on-year. Bulk cargo volume handled by the Company’s ports decreased by 7.1%
year-on-year to 450 million tons. During the Reporting Period, operating revenue of the Company
amounted to RMB12.619 billion, representing a year-on-year increase of 4.08%.
Table 3-1 Throughput of the Company and changes in 2020
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Item 2020 2019 Changes
Container throughput (’0,000 TEU) 12,171 11,293 7.8%
Among which: Mainland China 8,576 8,488 1.0%
Hong Kong and Taiwan 716 721 -0.7%
Overseas 2,878 2,084 38.1%
Bulk cargo throughput (hundred
4.5 4.9 -7.1%
million tonnes)
Among which: Mainland China 4.48 4.83 -7.1%
Overseas 0.058 0.063 -7.2%
Note: 1. The statistics represented the total throughput of the holding subsidiaries, associates
and joint ventures of the Company. 2. Discrepancies between totals and sums of sub-items listed are
due to rounding.
For container business, the Company’s ports in China handled container throughput of 85.76
million TEUs, representing a year-on-year increase of 1.0%. Ports in Hong Kong and Taiwan
regions contributed total container throughput of 7.16 million TEUs, indicating a decrease of 0.7%
year-on-year. The total container throughput handled by the Company’s overseas ports grew by 38.1%
year-on-year to 28.78 million TEUs, mainly benefiting from the inclusion of the eight newly
acquired terminals by TL and the business growth of LCT in Togo and TCP in Brazil. In terms of
bulk cargo business, the Company’s ports in Mainland China handled a bulk cargo volume of 448
million tons, down 7.1% year-on-year. Overseas ports handled a bulk cargo volume of 5.83 million
tons, down 7.2% year-on-year, mainly due to the decrease in throughput at PDSA in Djibouti and
Kumport in Turkey.
(2) Operation condition of port business by region
Table 3-2 Container throughput of the Company and changes in 2020
(in ’0,000 TEU)
Region and port company 2020 2019 Changes
West Shenzhen Port
Holding 1,184 1,142 3.6%
Zone
company
Pearl River
Shunde New Port 43 30 44.1%
Delta
Joint stock Chu Kong River Trade
106 109 -3.4%
company Terminal
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Joint stock
SIPG Group 4350 4,330 0.5%
company
Yangtze River
Delta
Holding
Ningbo Daxie 332 329 0.9%
company
Tianjin Port Container
787 447 75.8%
Joint stock Terminal
Bohai Rim
company
QQCTU 810 792 2.2%
Dalian Port 654 1,022 -36.0%
Zhangzhou Port 32 42 -25.4%
South-East
Holding
region of
company Shantou Port 159 134 18.9%
Mainland China
South-West
Holding
region of Zhanjiang Port 122 111 10.1%
company
Mainland China
Holding
company/ CMCS/
556 557 -0.2%
Joint stock Modern Terminals
Hong Kong and
company
Taiwan
Joint stock Taiwan Kao Ming
160 164 -2.2%
company Container
CICT 293 288 1.9%
Holding
TCP 98 92 7.4%
company
LCT 136 113 20.5%
Overseas TL 2113 1,325 59.4%
Joint stock Kumport 122 128 -5.1%
company PDSA 86 92 -6.3%
TICT 30 47 -35.3%
Total 12,171 11,293 7.8%
Note: 1. Due to the restructuring of Tianjin Five Continents International Container Terminal
Co., Ltd., a former joint stock company of the Company, the Company has adjusted the statistical
14
China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
caliber of Tianjin Port Container Terminal and included it in the statistics since September 2019; 2.
Since April 2020, the Company has newly included the business volume of eight new terminals
acquired by TL, a joint stock company of the Company; 3. Discrepancies between totals and sums
of sub-items listed are due to rounding.
Table 3-3 Bulk cargo volume handled by the Company and changes in 2020
(in ’0,000 tonnes)
Region and port company 2020 2019 Changes
West Shenzhen Port
1,807 1,300 39.0%
Zone
Holding
Pearl River company Dongguan Machong 1,548 1,227 26.2%
Delta Shunde New Port 395 226 74.4%
Joint stock Chu Kong River Trade
308 353 -12.8%
company Terminal
Yangtze River Joint stock
SIPG Group 7,565 11,515 -34.3%
Delta company
QQTU 1,629 1,559 4.5%
Qingdao Port
6,315 5,990 5.4%
Joint stock Dongjiakou
Bohai Rim
company Dalian Port 13,124 13,204 -0.6%
Laizhou Harbour
2,056 2,272 -9.5%
Affairs
Zhangzhou Port 633 814 -22.3%
South-East
Holding Xia Men Bay
region of 65 27 137.7%
company Terminals
Mainland China
Shantou Port 314 709 -55.7%
South-West
Holding
region of Zhanjiang Port 9,087 9,117 -0.3%
company
Mainland China
Holding
HIPG 124 50 145.6%
company
Overseas
Joint stock Kumport 7 10 -35.9%
company PDSA 453 568 -20.2%
Total 45,430 48,908 -7.1%
Note: 1. HIPG has included liquid bulk cargo in the statistics of its business volume since 2020;
2. Discrepancies between totals and sums of sub-items listed are due to rounding.
Pearl River Delta region
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
The Company’s terminals in West Shenzhen Port Zone handled a total container throughput of
11.84 million TEUs, up by 3.6% year-on-year. Bulk cargo volume handled amounted to 18.07
million tons, up by 39.0% year-on-year. Chu Kong River Trade Terminal handled a total container
throughput of 1.06 million TEUs and a bulk cargo volume of 3.08 million tons, down by 3.4% and
12.8% year-on-year respectively, mainly due to the suspension of certain foreign trade routes
affected by the pandemic. Dongguan Machong Terminal handled bulk cargo volume of 15.48
million tons, up by 26.2% year-on-year, mainly due to the significant increase in imported grains in
the region. Guangdong Yide Port Limited (Shunde New Port) handled a container throughput of
0.43 million TEUs, up by 44.1% year-on-year, mainly due to the steady increase in foreign trade
volume with the commencement of foreign trade business since July 2019. It also handled a bulk
cargo volume of 3.95 million tons, up by 74.4% year-on-year, mainly due to further market
expansion.
Yangtze River Delta region
SIPG handled a container throughput of 43.50 million TEUs, up by 0.5% year-on-year. Bulk cargo
volume handled declined by 34.3% year-on-year to 75.65 million tons because of the impact of the
pandemic and adjustment of business structure. Ningbo Daxie China Merchants International
Terminals Co., Ltd. (Ningbo Daxie) handled a container throughput of 3.32 million TEUs,
representing an increase of 0.9% year-on-year.
Bohai Rim region
Qingdao Qianwan United Container Terminal Co., Ltd. (QQCTU) handled a container throughput
of 8.10 million TEUs, representing an increase of 2.2% year-on-year. Qingdao Qianwan West Port
United Terminal Co., Ltd. (QQTU) handled a bulk cargo volume of 16.29 million tons, representing
an increase of 4.5% year-on-year. Because the rising domestic demand for iron ore led to the
increase in the foreign trade volume of iron ore, Qingdao Port Dongjiakou Ore Terminal Co., Ltd.
handled a bulk cargo volume of 63.15 million tons, indicating an increase of 5.4% year-on-year.
Dalian Port (PDA) Company Limited handled a container throughput of 6.54 million TEUs,
representing a decrease of 36.0% year-on-year, mainly due to the impact of the pandemic and
adjustment of business structure. Bulk cargo volume handled decreased by 0.6% year-on-year to
131 million tons. Due to intensifying regional competition and environmental policy, Laizhou
Harbour Affairs handled a bulk cargo volume of 20.56 million tons, representing a year-on-year
decrease of 9.5%. Since the Company participated in the merger of container terminals in Tianjin
which was completed in August 2019, Tianjin Port Container Terminal Co., Ltd. contributed a
container throughput of 7.87 million TEUs, representing a year-on-year increase of 75.8%.
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
South-East region of Mainland China
Zhangzhou China Merchants Port Co., Ltd. (“Zhangzhou Port”) handled a container throughput of
0.32 million TEUs, decreased by 25.4% year-on-year, while its bulk cargo volume handled
decreased by 22.3% year-on-year to 6.33 million tons, which is mainly affected by the pandemic
and the environmental policies in the hinterland. Since May 2019, Xia Men Bay China Merchants
Terminals Co., Ltd. (Xia Men Bay Terminals) has initiated its official operation and handled a bulk
cargo volume of 0.65 million tons, up by 137.7% year-on-year. Shantou China Merchants Port
Group Co., Ltd. handled a container throughput of 1.59 million TEUs, up by 18.9% year-on-year,
mainly due to the growth in the volume of domestic trade containers and a bulk cargo volume of
3.14 million tons, down by 55.7% year-on-year, dragged down by the impact of local environmental
policies and the vacation of old ports.
South-West region of Mainland China
Zhanjiang Port (Group) Co., Ltd. handled a container throughput of 1.22 million TEUs, up by 10.1%
year-on-year, mainly attributable to the expansion of new shipping routes and the new domestic
transshipment business. It also handled a bulk cargo volume of 90.87 million tons, down by 0.3%
year-on-year.
Hong Kong and Taiwan regions
Modern Terminals Limited and China Merchants Container Services Limited in Hong Kong
delivered an aggregate container throughput of 5.56 million TEUs, down by 0.2% year-on-year.
Kao Ming Container Terminal Corp. in Kaohsiung, China Taiwan, handled a total container
throughput of 1.60 million TEUs, representing a decrease of 2.2% year-on-year.
Overseas operation
In Sri Lanka, CICT handled a container throughput of 2.93 million TEUs, up by 1.9% year-on-year;
the bulk cargo volume handled by HIPG was 1.24 million tons, increased by 145.6% year-on-year,
mainly due to the growth in cement business in the second half of the year. Its RO-RO volume was
0.375 million vehicles, down by 8.5% year-on-year, mainly due to the pandemic, the suspension of
automobile production in Indian factories, and decline in the local vehicle imported. Container
throughput handled by LCT in Togo increased by 20.5% year-on-year to 1.36 million TEUs, which
was mainly due to the transfer of some transshipment routes from regions seriously impacted by the
pandemic to LCT in Togo by shipping companies. Container throughput handled by TICT in
Nigeria was 0.30 million TEUs, representing a decrease of 35.3% year-on-year, mainly due to the
decrease in import demand affected by the pandemic and the drop of oil prices. Given the declining
import and export demand in the hinterland, PDSA in Djibouti handled a container throughput of
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
0.86 million TEUs, down by 6.3% year-on-year, and a bulk cargo volume of 4.53 million tons,
down by 20.2% year-on-year. TL handled a container throughput of 21.13 million TEUs, up by 59.4%
year-on-year, which was mainly benefitted from the container throughput handled by the new eight
ports whose acquisition was completed in March 2020. Container throughput handled by Kumport
in Turkey was 1.22 million TEUs, representing a decrease of 5.1% year-on-year; while bulk cargo
volume handled was 70 thousand tons, down by 35.9% year-on-year, which was mainly due to the
decline of marble exports affected by the pandemic. Benefitted from the increase in import and
export container volume driven by the growth in the trade of agricultural and meat products, TCP in
Brazil handled a container throughput of 0.98 million TEUs, up by 7.4% year-on-year.
3. Implementation of business plan during the reporting period
During the Reporting Period, the Company continued to pursue its strategic focus. It adhered to the
strategic directives and the general operation philosophy of “enhancing core capability, insisting on
both quality and efficiency, capitalizing on opportunities of this era, and striving to become a
world’s leading enterprise” with an unwavering aspiration to reinforce its foundation and made
innovation with a pragmatic attitude. Striving to achieve breakthroughs in seven key aspects,
namely the building of homebase ports, business expansion, innovative development,
comprehensive development, operation management, capital operation, and marketing and
commerce, the Company actively implemented various key tasks and maintained steady growth in
all business segments in 2020.
In terms of the development of homebase ports, the Company accelerated the building of
world-class ports in line with the national “Outline for the Construction of a Strong Transportation
Country” and the “Guiding Opinions on the Construction of World-Class Ports” promulgated by
nine Chinese ministries. Closely following the national development strategy of
Guangdong-Hong Kong-Macao Greater Bay Area. West Shenzhen Port Zone promoted
high-value-added business with routes and supply chain resources and pushed forward the launch of
regular night service along the Tonggu Channel as soon as possible to enhance its navigation
capacity and competitiveness. As for Mawan Intelligent Port, two berths, each with a capacity of
200,000 tons, would be in place after the construction is completed, and one of the berths was
delivered and accepted on 26 August, 2020. The Company will continue to develop, at full stretch,
West Shenzhen Port Zone into an international leading intelligent port in Guangdong-Hong
Kong-Macao Greater Bay Area and the world. In terms of the development of overseas homebase
ports, CICT and HIPG adopted a market-oriented approach to enhance service capability and
expand value-added services. They strengthened the sound momentum of growth, deepened
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
business synergy and collaboration, improved overall planning, and established cooperation with
the port segment of major shipping companies, thereby facilitating industry development and
boosting regional influence.
In respect of business expansion, the Company completed the acquisition of equity interests in 8 out
of 10 target terminals through TL, which is the associate company of the Company, on 26 March
2020. After completion of the investments, the Company expanded its port business into Southeast
Asia, Middle East, Europe, Middle East, and the Caribbean, which further optimized its global port
network.
In pursuit of innovative development, the Company proactively supported the construction of
intelligent ports and the port ecosystem. As to the intelligent port development, the first berth of the
Mawan Intelligent Port construction project has been delivered and accepted, and has become the
first automated container terminal upgraded and transformed from a traditional multi-purpose
terminal in China. The project embodied smart technology, social and economic contributions by
incorporating nine major intelligent elements, namely “CM Chip”, “CM ePort”, artificial
intelligence, 5G network application, Beidou system, automation, intelligent ports, blockchain, and
green and low-carbon development. It was recognized as a key research and development project by
the Ministry of Science and Technology and would be developed into a model for intelligence
upgrade of traditional terminals at home and abroad. In terms of service expansion, the Company
creatively developed the complex port in the Guangdong-Hong Kong-Macao Greater Bay Area. By
combining blockchain, big data, artificial intelligence, and cloud computing, it established the
customs and logistics platform for the Greater Bay Area via technology empowerment, so as to
promote the healthy and sustainable growth of cross-border trade in the region. For the incubation
of business innovation, the Company took initiative to cooperate with leading Internet technology
companies to explore the establishment of the open intelligent port platform. Regarding the
integration between industry and finance, it invested and established China Merchants Port
(Shenzhen) Industrial Innovation Private Equity Investment Fund (招商港口（深圳）产业创新私
募股权投资基金) in collaboration with China Merchants Venture, the fund of which will capitalize
on the integration between the industrial and the financial sector to promote technological
innovation and transformation, and then optimize the industry ecosystem.
In terms of comprehensive development, the Company took a key step forward in the
implementation of the PPC model. Focusing on the Djibouti Zone and the HIPG Zone in Sri Lanka,
it further improved the international network layout and the synergy among overseas businesses.
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
Until the end of 2020, HIPG industrial park and Djibouti International Free Trade Zone have
entered into contracts with 26 and 114 enterprise tenants, respectively. Despite the adverse impact
of the pandemic, it made great progress in the introduction of business and investment.
In terms of operation management, the Company, guided by “empowerment, professionalism and
value” and surrounded by five core elements, namely “management standard, professional team,
closed-loop procedure, information system and benchmark enhancement”, established an operation
management system with sustainable value creation, gradually formulated standards for all
functional modules, and managed to build a world-class value-oriented headquarters. Taking into
account the strategic positioning of its various business segments, the Company, adhering to the
principles of differentiation and controllable risks and pushing forward full-cycle asset management,
procurement management, and performance evaluation mechanism, continuously promoted the
healthy development of its subsidiaries. Besides, focusing on execution quality, the Company
intensified the tasks on quality and efficiency improvement and strived to implement related
measures to achieve in-depth integration between quality and efficiency improvement and strategic
objectives.
In terms of capital operation, the Company promoted regularized dual-platform capital operation
and adhered to the working concept of revitalizing existing assets and optimizing asset structure. It
introduced Fujian Transportation Maritime Silk Road Investment and Management Co. Limited (福
建省交通海丝投资管理有限公司) as the strategic investor of HIPG, with a view to tapping into
synergy by optimizing the asset profile and the corporate governance structure. Following its
strategic goals, it utilized the dual platform and realized growth in asset size and profit volume
through consolidating the financial statements of Ningbo Daxie and optimizing the tax structure and
liability management.
In terms of marketing and commerce, the Company continued to organize and make plans of
business promotion and marketing campaigns for domestic and international customers. During the
pandemic, it maintained proactive communication with customers to ensure smooth business
operation. Leveraging its terminal resources across Northern and Southern China, it optimized the
route network and built the boutique shipping routes. It also participated in major events such as the
China International Import Expo and the China Marine Economy Expo to build the brand image of
CMPort.
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China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
2. Significant Change to Principal Activities in the Reporting Period
□ Yes √ No
3. Product Category Contributing over 10% of Principal Business Revenue or Profit
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Port
12,047,724,502.59 7,407,129,837.37 38.52% 4.34% 3.08% 0.75%
operations
By operating segment
Mainland
China, Hong
9,117,570,900.78 6,080,095,490.47 33.31% 2.77% 1.87% 0.59%
Kong and
Taiwan
Other
countries and 3,500,959,095.24 1,793,654,364.38 48.77% 7.66% 6.73% 0.45%
regions
4. Business Seasonality that Calls for Special Attention
□ Yes √ No
5. Significant YoY Changes in Operating Revenue, Cost of Sales and Net Profit Attributable
to the Listed Company’s Ordinary Shareholders or Their Compositions
□ Applicable √ Not applicable
6. Possibility of Listing Suspension or Termination
□ Applicable √ Not applicable
7. Matters Related to Financial Reporting
(1) YoY Changes to Accounting Policies, Accounting Estimates or Measurement Methods
On 14 April 2020, the Company held the 7th Meeting of the 9th Board of Directors and the 7th
Meeting of the 9th Supervisory Committee, where the Proposal on Changes in Accounting
Estimation of the Depreciable Life of Some Fixed Assets was considered and approved. In
accordance with the Accounting Standards for Business Enterprises No. 4 - Fixed Assets and the
Company’s related regulations, the Company reviewed the expected service life of its fixed assets
based on their performance and use conditions, and decided to make adjustment to the depreciable
21
China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
life of some fixed assets to make it more reasonable, thus reflecting the Company’s financial
conditions and operating results in a more objective and fair manner. For the specific content, please
refer to the Announcement on Changes in Accounting Estimates of Depreciation Period of Partial
Fixed Assets (Announcement No.: 2020-037) published on www.cninfo.com.cn on 16 April 2020.
On 19 June 2020, the Ministry of Finance issued Provisions on the Accounting Treatment of the
COVID-19 Pandemic-related Rental Concessions in Cai Kuai [2020] File No.10 (hereinafter
referred to as "File No.10"). It's specified in File No. 10 that, for rental concessions, provided that
certain conditions are satisfied, an enterprise can conduct accounting treatment according to
Accounting Standards for Business Enterprises No. 21—Leases, or adopt the simplified method
specified in File No.10. Where the enterprise adopts the simplified method, it's unnecessary to
assess whether there is lease changes or re-assess the lease classifications. The enterprise shall
apply the option to all the similar lease contracts and shall not change it arbitrarily.
For further information, please refer to (III) Changes in Significant Accounting Policies and
Accounting Estimates in Part XII Financial Statements of the full text of the 2020 Annual Report
for details.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) YoY Changes to the Scope of Consolidated Financial Statements
On 19 November 2020, Cyber Chic, a subsidiary of the Company, and the other shareholders of
CMICT (Ningbo Port and CITIC Port Investment Co., Ltd.) resolved by way of shareholders'
resolutions to establish the Budget Committee, and entered into a Cooperation Agreement with
Ningbo Port (the “Cooperation Agreement”). The Budget Committee comprised three directors.
Each of the shareholders of CMICT nominated one director to be a member of the Budget
Committee, and the director nominated by Cyber Chic was the chairman. The Budget Committee is
primarily responsible for approving CMICT’s annual business plans, annual financial budgets and
final accounts, and after-tax profit distribution plans. Any matters to be considered by the Budget
Committee shall be approved by a two-thirds majority.
Pursuant to the Cooperation Agreement, Cyber Chic and Ningbo Port will consult and communicate
among themselves to reach consensus before exercising their shareholders’ rights. If the parties to
22
China Merchants Port Group Co., Ltd. Annual Report 2020 (Summary)
the Cooperation Agreement cannot reach consensus on any matter in relation to CMICT’s
operations and management, the matter shall be decided in accordance with the opinion of Cyber
Chic. No consideration was payable by either party under the Cooperation Agreement. Upon the
completion of the Cooperation Agreement, Cyber Chic and Ningbo Port together had an over-50%
interest in CMICT. Accordingly, the Company has included CMICT into its consolidated financial
statements since 19 November 2020, and CMICT has since become a subsidiary instead of a joint
venture of the Company, with the Company’s interest in CMICT remaining the same.
For and on behalf of the Board
Bai Jingtao
Legal representative of
China Merchants Port Group Co., Ltd.
Dated 31 March 2021
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