招港B:2019年第三季度报告正文(英文版)

China M erchants Port Group Co., Ltd.                                          The Report for the Third Quarter of 2019
Stock Code: 001872/201872               Stock Name: CM Port Group, CM Port Group B          Announcement No. 2019 -075
           CHINA MERCHANTS PORT GROUP CO., LTD.
      THE REPORT FOR THE THIRD QUARTER OF 2019
                            Date of Disclosure: 31 October 2019
China M erchants 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 manage ment 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 mate rial 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 M erchants Port Group Co., Ltd.                                                   The Report for the Third Quarter of 2019
                                                      Definitions
              Term                                                         Definition
  The “Company”, “CM Port” China M erchants Port Group Co., Ltd., formerly named as Shenzhen Chiwan Wharf Holdings
  or “we”                     Limited
  CMG                           China M erchants Group Co., Limited
                                China M erchants Investment Development Company Limited, the Chinese name is “招商局投
  CM ID
                                资发展有限公司”
  CMPort Holdings               China M erchants 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 M erchants 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 M erchants 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 AM BADO FZCO
  SZSE                          Shenzhen Stock Exchange
  CMG Finance                   China M erchants Group Finance Co., Ltd.
  The “Articles of
                                The Articles of Association of China M erchants 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
  RM B                          Expressed in the Chinese currency of Renminbi
  RM B’0,000                   Expressed in tens of thousands of Renminbi
  RM B’00,000,000              Expressed in hundreds of millions of Renminbi (unless otherwise specified)
China M erchants 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 (RM B)
                                             Q3 2019              YoY change (%)           Q1~Q3 2019            YoY change (%)
Operating revenue (RM B)                    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 (RM B)
Net profit attributable to the listed
company’s       shareholders   before        155,647,010.17                  14.46%            725,052,340.93             59.93%
exceptional items (RM B)
Net cash generated from/used in
                                                             --                     --      3,956,552,986.35               26.97%
operating activities (RM B)
Basic     earnings        per   share
                                                       0.095                 -38.31%                    1.377             175.40%
(RM B/share)
Diluted        earnings   per   share
                                                       0.095                 -38.31%                    1.377             175.40%
(RM B/share)
Weighted average return on equity
                                                       0.52%                  -0.43%                    7.74%                  4.63%
(%)
China M erchants 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
(RM B/share)
Exceptional gains and losses:
√ Applicable □ Not applicable
                                                                                                                         Unit: RM B
                                    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 & income
                                                                                                     changes in financial assets
from disposal of trading financial assets and liabilities, derivative
                                                                                   651,390,184.96 and liabilities at fair value
financial assets and liabilities, as well as investments in other debt
                                                                                                     through profit or loss held in
obligations (exclusive of effective portion of hedges that arise in the
                                                                                                     this year
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                                     -
M inority 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 M erchants 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       M erchants       Investment Foreign
                                                              64.05%          1,148,648,648 1,148,648,648
Development Company Limited             legal person
China       M erchants       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
CM BLSA RE FTIF TEM PLETON 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 M erchants Securities (HK) State-owned
                                                               0.14%               2,580,267                   0            Unknown
Co., Ltd.                               legal person
                                        Domestic
M ai Shuqing                            natural                0.13%               2,376,747                   0            Unknown
                                        person
                                        Domestic
Shen Huailing                           natural                0.08%               1,519,849                   0            Unknown
                                        person
VANGUARD                 EM ERGING
                                        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 M erchants Port Group Co., Ltd.                                                 The Report for the Third Quarter of 2019
China    M erchants     Gangtong     Development                                                    RM B-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
CM BLSA RE FTIF TEM PLETON 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 M erchants Securities (HK) Co., Ltd.                                              2,580,267                            2,580,267
                                                                                                    listed foreign stock
                                                                                                    RM B-denominated
M ai Shuqing                                                                            2,376,747                            2,376,747
                                                                                                    ordinary stock
                                                                                                    Domestically
Shen Huailing                                                                           1,519,849                            1,519,849
                                                                                                    listed foreign stock
VANGUARD EM ERGING MARKETS STOCK                                                                    Domestically
                                                                                        1,326,082                            1,326,082
INDEX FUND                                                                                          listed foreign stock
                                                                                                    RM B-denominated
Chen Zehong                                                                             1,240,000                            1,240,000
                                                                                                    ordinary stock
Industrial     and     Commercial     Bank    of
                                                                                                    RM B-denominated
China-Fullgoal China Securities Dividend Index                                          1,128,901                            1,128,901
                                                                                                    ordinary stock
Enhanced Securities Investment Fund
                                                   China M erchants 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 M erchants 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 M erchants 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 Pe riod,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 M erchants 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 M erchants 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 M erchants 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:
China M erchants Port Group Co., Ltd.                                                  The Report for the Third Quarter of 2019
         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
   3        2019-056         16 July 2019    Announcement on Voluntary Disclosure of the Business Volume Data of June 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 Strategic Cooperation Frame
   6        2019-059        30 August 2019
                                             Agreement
   7        2019-060        31 August 2019 Announcement on the Resolutions of the 6th M eeting of the 9th Board of Directors
   8        2019-061        31August 2019 Announcement on the Resolutions of the 6th M eeting of the 9th Supervisory 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 and
  12        2019-065        31August 2019
                                             Participating in a Unified Investor Day for the Listed Companies of 2019 in Shenzhen
                                             Announcement on Resolutions of the 8 th Extraordinary M eeting 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
  15        2019-068      16 September 2019 Announcement on Voluntary Disclosure of the Business Volume Data of August 2019
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
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.
    China M erchants Port Group Co., Ltd.                                                                                          The Report for the Third Quarter of 2019
    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: RM B
                                                                                                  Gain/loss on Cumulative
                                                                                                                            Purchased Sold in
 Variety                                                 Accounting                                fair value    fair value                      Gain/loss in
            Code of       Name of            Initial                   Beginning                                             in the      the                  Ending carrying Accounting Funding
   of                                                    measurement                             changes in the changes                         the Reporting
           securities     securities     investment cost             carrying value                                         Reporting Reporting                   value          item    resources
securities                                                 model                                   Reporting      recorded                         P eriod
                                                                                                                             P eriod   P eriod
                                                                                                     P eriod    into equity
                                                                                                                                                                                Trading
                                                            Fair value
             601018 Ningbo Port           592,183,095.14                      1,361,414,474.58 114,517,739.90            -      0.00      0.00 38,672,165.11 1,520,382,032.52 financial         Self-owned
 Stock
                                                            method
                                                                                                                                                                                assets
                                                                                                                                                                                Trading
                                                            Fair value
              06198 Qingdao Port          124,405,138.80                       190,401,046.01 -16,959,420.50             -      0.00      0.00 15,697,928.28   178,625,688.00 financial         Self-owned
 Stock                                                      method
                                                                                                                                                                                assets
                                                                                                                                                                                Trading
                                                            Fair value
             601298 Qingdao Port          331,404,250.30                       413,280,000.00 253,120,000.00             -      0.00      0.00 42,526,400.00   666,400,000.00 financial         Self-owned
 Stock                                                      method
                                                                                                                                                                                assets
                                                                                                                                                                                Investments
                        Ninghu                              Fair value                                                                                                          in other
             600377                         1,120,000.00                         9,800,000.00                 - 442,500.00      0.00      0.00    460,000.00    10,390,000.00                   Self-owned
 Stock                  Expressway                          method                                                                                                              equity
                                                                                                                                                                                instruments
                                                                                                                                                                                Investments
                        P etrochemical                      Fair value                                                                                                          in other
             400032                         3,500,000.00                           382,200.00                 -          -      0.00      0.00             -       382,200.00                   Self-owned
 Stock                  A1                                  method                                                                                                              equity
                                                                                                                                                                                instruments
                                                                                                                                                                                Investments
                                                            Fair value                                                                                                          in other
             400009 Guang Jian 1               27,500.00                            17,000.00                 -          -      0.00      0.00             -        17,000.00                   Self-owned
 Stock
                                                            method                                                                                                              equity
                                                                                                                                                                                instruments
Other investment securities at the
                                                        -                --                  -                -          -         -         -             -                -              --           --
period-end
Total                                    1,052,639,984.24                -- 1,975,294,720.59 350,678,319.40 442,500.00          0.00      0.00 97,356,493.39 2,376,196,920.52              --           --
    VI Wealth Manage ment Entrustment
        □ Applicable √ Not applicable
China M erchants Port Group Co., Ltd.                                                       The Report for the Third Quarter of 2019
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
Inte rvie ws 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         M ain inquiry: basic business condition, investments and
      30 September 2019           written inquiry
                                                                          financial condition of the Company;
                                    M eeting in
      5 September 2019                                 Institution        M aterials 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
No such cases in the Reporting Period.
X Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Ope rating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XI Progress Made on Internal Control
China M erchants Port Group Co., Ltd.                                          The Report for the Third Quarter of 2019
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
system at the end of the year.
2. Risk Management
(1) Major risks for 2019 were monitored
According to the divis ion 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.
China M erchants Port Group Co., Ltd.                                        The Report for the Third Quarter of 2019
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 Co mpany
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
                                 th                 th
reviewed and approved on the 5 Meeting of the 9 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 M erchants Port Group Co., Ltd.                                            The Report for the Third Quarter of 2019
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 M erchants Group Finance Co.,
Ltd.                                                          49,413.12     610,048.94      608,092.64            51,369.41
II. Loans provided by China M erchants Group
Finance Co., Ltd.                                             77,500.00     129,248.39      125,800.00            80,948.39
XIII Explain Change of the Accounting Policy, Accounting Estimate and Measure ment
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
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.
China M erchants Port Group Co., Ltd.                                     The Report for the Third Quarter of 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.
                                                                        The Board of Directors
                                                                China Merchants Port Group Co., Ltd
                                                                            31 October 2019

关闭窗口