招港B:2019年第三季度报告全文(英文版)

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.
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)
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%
(%)
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
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
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
Development Company Limited              legal person
China        Merchants         Gangtong State-owned
                                                                20.68%            370,878,000                    0
Development (Shenzhen) Co., Ltd. legal person
                                         State-owned
Broadford Global Limited                                         3.08%             55,314,208                    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
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
   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
   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
                                                                                     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
                                                                                     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
   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
                                                                                          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
                                                                                          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
                                                                                          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
                                                                                          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
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
     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
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
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
 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
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
    Number of institutions communicated with
    Number of individuals communicated with
    Number of other communication parties
    Tip-offs or leakages of substantial confidential information
                                                                                                                                No
 during the communications
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
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
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
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
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.
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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

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