CHINA MERCHANTS PORT GROUP CO., LTD.THE REPORT FOR THE THIRD QUARTER OF 2020
31 October 2020
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
Part I Important NotesThe 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. (hereinafterreferred to as the “Company”) hereby guarantee the factuality, accuracy and completeness ofthe contents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Bai Jingtao, the Company’s legal representative, Lu Yongxin, the Company’s Acting ChiefFinancial Officer, and Sun Ligan, the person-in-charge of the accounting organ herebyguarantee that the financial statements carried in this Report are factual, accurate andcomplete.Securities Times, Shanghai Securities News, Ta Kung Pao (HK) and www.cninfo.com.cn havebeen designated by the Company for information disclosure. And all information about theCompany shall be subject to what’s disclosed on the aforesaid media.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
Part II Key Corporate InformationI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| 30 September 2020 | 31 December 2019 | Change (%) | ||||
| Total assets (RMB) | 162,430,979,728.70 | 156,696,917,845.87 | 3.66% | |||
| Equity attributable to the listed company’s shareholders (RMB) | 35,981,501,820.33 | 35,972,804,419.42 | 0.02% | |||
| Q3 2020 | YoY change (%) | Q1-Q3 2020 | YoY change (%) | |||
| Operating revenue (RMB) | 3,239,264,119.14 | 1.91% | 9,161,761,277.62 | 1.65% | ||
| Net profit attributable to the listed company’s shareholders (RMB) | 642,339,845.93 | 275.44% | 1,275,138,431.76 | -48.38% | ||
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 605,513,230.59 | 289.03% | 1,150,105,145.13 | 58.62% | ||
| Net cash generated from/used in operating activities (RMB) | 1,665,387,875.49 | 18.98% | 3,736,814,020.41 | -5.55% | ||
| Basic earnings per share (RMB/share) | 0.334 | 251.58% | 0.663 | -51.85% | ||
| Diluted earnings per share (RMB/share) | 0.334 | 251.58% | 0.663 | -51.85% | ||
| Weighted average return on equity (%) | 1.81% | 1.29% | 3.54% | -4.20% | ||
The total share capital at the end of the last trading session before the disclosure of this Report:
| Total share capital at the end of the last trading session before the disclosure of this Report (share) | 1,922,365,124 |
Fully diluted earnings per share based on the latest total share capital above:
| Dividend of preference shares paid | No preference shares |
| Fully diluted earnings per share based on the latest total share capital above (RMB/share) | 0.6633 |
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1-Q3 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 693,724,248.54 | - |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s uniform standards) | 90,898,183.07 | - |
| Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 170,717,524.54 | - |
| Gain or loss on fair-value changes in held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | -486,465,335.85 | Gain or loss on fair value changes in financial assets and liabilities at fair value through profit or loss held in this year |
| Reversed portions of impairment allowances for accounts receivable and contract assets which are tested individually for impairment | 217,699.96 | - |
| Non-operating income and expense other than the above | -13,554,852.47 | - |
| Less: Income tax effects | 28,137,168.49 | - |
| Non-controlling interests effects (net of tax) | 302,367,012.67 | - |
| Total | 125,033,286.63 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined orlisted in the Explanatory Announcement No. 1 on Information Disclosure for Companies OfferingTheir Securities to the Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
II Total Number of Shareholders and Holdings of Top 10 of Them as at the End of theReporting Period
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed VotingRights as well as Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 33,340 (21,839 A-shares, 11,501 B-shares) | Number of preferred shareholders with resumed voting rights (if any) | 0 | |||
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |
| China Merchants Port Investment Development Company Limited | Foreign legal person | 59.75% | 1,148,648,648 | 1,148,648,648 | 0 | |
| China Merchants Gangtong Development (Shenzhen) Co., Ltd. | State-owned legal person | 19.29% | 370,878,000 | 0 | 0 | |
| Shenzhen Infrastructure Investment Fund Management Co., Ltd.－Shenzhen Infrastructure Fund Partnership (Limited Partnership) | Fund and wealth management products | 3.37% | 64,850,182 | 64,850,182 | 0 | |
| China-Africa Development Fund Co., Ltd. | State-owned legal person | 3.33% | 64,102,564 | 64,102,564 | 0 | |
| Broadford Global Limited | State-owned legal person | 2.88% | 55,314,208 | 0 | 0 | |
| CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 | Foreign legal person | 0.80% | 15,446,850 | 0 | Unknown | |
| Hong Kong Securities Clearing Company Ltd. | Foreign legal person | 0.15% | 2,919,222 | 0 | Unknown | |
| NORGES BANK | Foreign legal person | 0.15% | 2,802,863 | 0 | Unknown | |
| China Merchants Securities (HK) Co., Ltd. | State-owned legal person | 0.14% | 2,599,955 | 0 | Unknown | |
| Mai Shuqing | Domestic natural person | 0.11% | 2,129,247 | 0 | Unknown | |
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by type | ||||
| Type | Shares | |||||
| China Merchants Gangtong Development (Shenzhen) Co., Ltd. | 370,878,000 | RMB ordinary share | 370,878,000 | |||
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
| Broadford Global Limited | 55,314,208 | Domestically listed foreign share | 55,314,208 |
| CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 | 15,446,850 | Domestically listed foreign share | 15,446,850 |
| Hong Kong Securities Clearing Company Ltd. | 2,919,222 | RMB ordinary share | 2,919,222 |
| NORGES BANK | 2,802,863 | Domestically listed foreign share | 2,802,863 |
| China Merchants Securities (HK) Co., Ltd. | 2,599,955 | Domestically listed foreign share | 2,599,955 |
| Mai Shuqing | 2,129,247 | RMB ordinary share | 2,129,247 |
| Shen Huailing | 1,630,749 | Domestically listed foreign share | 1,630,749 |
| Industrial and Commercial Bank of China－Fullgoal CSI Dividend Index Enhanced Securities Investment Fund | 1,304,401 | RMB ordinary share | 1,304,401 |
| Lin Jianjuan | 1,264,000 | RMB ordinary share | 1,264,000 |
| Related or acting-in-concert parties among the shareholders above | China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a controlled subsidiary of Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China Merchants Port Investment Development Company Limited. The Company does not know whether the other unrestricted shareholders are related parties or not. | ||
| Top 10 shareholders engaged in securities margin trading (if any) | N/A | ||
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestrictedordinary shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
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 2020
Part III Significant EventsI Changes in Key Financial Statement Line Items and Their Explanation
√ Applicable □ Not applicable
Unit: RMB
| Balance sheet items | 30 September 2020 | 31 December 2019 | Change (%) | Explanation of changes |
| Accounts receivable | 1,793,332,566.08 | 1,356,460,129.90 | 32.21% | Time of payment by clients and slower collection of payments at the end of a quarter than at the end of a year |
| Other receivables | 2,821,563,627.82 | 2,129,378,252.50 | 32.51% | Additional receivable government compensation for land acquisition in the current period |
| Non-current assets due within one year | 25,707,051.04 | 808,893,013.06 | -96.82% | Extension of non-current assets due within one year upon maturity |
| Long-term receivables | 4,132,143,210.81 | 1,098,831,799.90 | 276.05% | Providing loan for Terminal Link SAS (hereinafter referred to as “TL”) in the current period |
| Other non-current financial assets | 3,762,812,016.75 | 2,385,363,537.39 | 57.75% | Changes in fair value and new investments in the current period |
| Other payables | 3,539,052,507.96 | 2,223,754,677.96 | 59.15% | Dividends payable, which will be paid at the end of the year as a usual practice of the Company and its subsidiaries |
| Non-current liabilities due within one year | 3,026,870,677.93 | 6,104,339,856.79 | -50.41% | Repayment of debt due within one year in the current period |
| Other current liabilities | 3,198,796,967.04 | 885,956,581.63 | 261.06% | New issue of super short-term commercial paper |
| Income statement items | Q1-Q3 2020 | Q1-Q3 2019 | Change (%) | Explanation of changes |
| Financial expenses | 1,140,668,376.13 | 1,512,661,989.99 | -24.59% | Net effect of a decrease in the interest rate and of exchange gains on exchange rate fluctuations |
| Gains from changes in fair value | -488,315,935.84 | 278,440,925.78 | -275.38% | Changes in the fair value of financial assets in the current period |
| Gains on disposal of assets | 693,724,248.54 | 4,171,684,760.29 | -83.37% | Compensation income from the transfer of land in Qianhai in the same period of last year, with no comparable income in the current period |
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
| Income tax expenses | 611,495,691.87 | 2,167,283,540.59 | -71.79% | Income tax on the compensation income from the transfer of land in Qianhai in the same period of last year, with no comparable income tax in the current period |
| Cash flow statement items | Q1-Q3 2020 | Q1-Q3 2019 | Change (%) | Explanation of changes |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 373,091,292.57 | 6,135,808,673.12 | -93.92% | Compensation income from the transfer of land in Qianhai in the same period of last year, with no comparable income in the current period |
| Cash received relating to other investing activities | 978,146,461.61 | 4,062,782,125.98 | -75.92% | Recovered principals of structured deposits decreased year-on-year, and the same period of last year saw the recovery of a shareholder loan, with no comparable recovery of loan in the current period |
| Cash paid to acquire investments | 10,944,362,282.33 | 7,828,684,852.29 | 39.80% | Subscription for MCB issued by TL and investment in Northeast Asia Development and Investment Co., Ltd. |
| Cash paid relating to other investing activities | 3,011,289,010.12 | 1,303,951,129.78 | 130.94% | Payment of loan to TL in the current period |
| Cash received from borrowings | 23,726,548,723.25 | 12,838,230,272.62 | 84.81% | Increase in short-term borrowings received in the current period |
| Repayments of borrowings | 17,803,978,213.32 | 11,791,203,049.88 | 50.99% | Increase in repayments of mature borrowings in the current period |
| Cash paid relating to other financing activities | 757,948,189.24 | 281,985,995.17 | 168.79% | Payment for the acquisition of a 10% interest in TCP in the current period |
II Progress, Influence and Solutions in respect of Significant Events
√ Applicable □ Not applicable
1. Index to Information Disclosure
In the Reporting Period, the Company disclosed the following significant events:
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
| No. | Announcement No. | Date | Title |
| 1 | 2020-057 | 9 July 2020 | Announcement on Implementation of Dividend Assignation of 2019 |
| 2 | 2020-058 | 11 July 2020 | Announcement on Semi-annual Performance Estimation of 2020 |
| 3 | 2020-059 | 11 July 2020 | Announcement on Voluntary Disclosure of the Business Volume Data of June 2020 |
| 4 | 2020-060 | 28 July 2020 | Reminder of Issuance of Support Letter to Antong Holdings Co., Ltd. |
| 5 | 2020-061 | 15 August 2020 | Announcement on Voluntary Disclosure of the Business Volume Data of July 2020 |
| 6 | 2020-062 | 15 August 2020 | Announcement on Increase in Information Disclosure Media |
| 7 | 2020-063 | 29 August 2020 | Announcement on the Resolutions of the 2nd Meeting of the 10th Board of Directors |
| 8 | 2020-064 | 29 August 2020 | Announcement on the Resolutions of the 2nd Meeting of the 10th Supervisory Committee |
| 9 | 2020-065 | 29 August 2020 | Abstract of Interim Report of 2020 |
| 2020-065 | 29 August 2020 | Abstract of Interim Report of 2020 (English version) | |
| 10 | 2020-066 | 29 August 2020 | Special Report of the Deposit and Use of Semi-annual Raised Funds in 2020 |
| 11 | 2020-067 | 29 August 2020 | Announcement on Issuing the Interim Results of Controlled Subsidiaries in 2020 |
| 12 | 2020-068 | 29 August 2020 | Announcement on Convening Online Communication Meeting of Investors for Semi-annual Performance of 2020 |
| 13 | 2020-069 | 15 September 2020 | Announcement on Voluntary Disclosure of the Business Volume Data of August 2020 |
| 14 | 2020-070 | 26 September 2020 | Announcement on Adjustment of Guarantee Line among Subsidiaries |
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 Relevant Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2020
IV Financial Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement method | Beginning carrying value | Gain/loss on fair value changes in the Reporting Period | Cumulative fair value changes recorded into equity | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in the Reporting Period | Ending carrying value | Accounting title | Capital resources |
| Stock | 601018 | Ningbo Port | 2,057,581,706.69 | Fair value method | 1,548,914,671.20 | -39,005,401.15 | - | 1,465,398,611.55 | - | 53,304,320.49 | 2,946,245,980.67 | Trading financial assets | Self-owned |
| Stock | 6198 | Qingdao Port | 124,405,138.80 | Fair value method | 204,263,917.11 | -38,291,871.63 | - | - | - | 8,145,387.45 | 163,101,087.02 | Trading financial assets | Self-owned |
| Stock | 601298 | Qingdao Port | 331,404,250.30 | Fair value method | 616,000,000.00 | 21,280,000.00 | - | - | - | 22,433,600.00 | 637,280,000.00 | Trading financial assets | Self-owned |
| Stock | 600377 | Jiangsu Expressway | 1,120,000.00 | Fair value method | 11,220,000.00 | - | -114,900.00 | - | - | 460,000.00 | 11,066,800.00 | Other investments in equity instruments | Self-owned |
| Stock | 400032 | Petrochemical A1 | 3,500,000.00 | Fair value method | 382,200.00 | - | - | - | - | - | 382,200.00 | Other investments in equity instruments | Self-owned |
| Stock | 400009 | Guang Jian 1 | 27,500.00 | Fair value method | 17,000.00 | - | - | - | - | 17,000.00 | Other investments in equity instruments | Self-owned | |
| Total | 2,518,038,595.79 | -- | 2,380,797,788.31 | -56,017,272.78 | -114,900.00 | 1,465,398,611.55 | 0.00 | 84,343,307.94 | 3,758,093,067.69 | -- | -- | ||
2. Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Progress of Projects Financed with Raised Funds
√ Applicable □ Not applicable
1. Funds Raised through Private Placement of Shares
Pursuant to the Reply of China Securities Regulatory Commission on the Approval of ShenzhenChiwan Wharf Holdings Limited Offering Shares to China Merchants Investment DevelopmentCompany Limited for Asset Acquisition and Raising the Matching Funds (ZJXK [2018] No. 1750)dated 31 October 2018, the Company issued, in a private placement, a total of 128,952,746 sharesof RMB-denominated ordinary shares (A-shares) to two entities including China-AfricaDevelopment Fund at RMB17.16/share, raising a total of RMB2,212,829,121.36 (with the netamount after deducting issuance costs being RMB2,185,997,340.15). Following the arrival of theaforesaid funds, BDO China Shu Lun Pan Certified Public Accountants LLP issued a CapitalVerification Report (XKSBZ [2019] No. ZI10673).As of 30 September 2020, a total of RMB1,167,720,741.26 of raised funds have been used,including: (1) RMB582,722,414.48 as the replacement for the self-financings that had been inadvance input into project to be financed by raised funds; (2) RMB558,166,545.57 (after the arrivalof the raised funds) for the Haixing Harbor Renovation Project (Phase II), withRMB324,533,139.29 in 2019 and RMB233,633,406.28 in Q1-Q3 2020; and (3) RMB26,831,781.21as issuance costs.As of 30 September 2020, the interest income in the account of raised funds during Q1-Q3 2020minus service charges stood at RMB928,902.57. And the income from structured deposits duringQ1-Q3 2020 stood at RMB24,059,315.07. Therefore, as of 30 September 2020, the balance in theaccount of raised funds amounted to RMB1,071,194,838.63. The use and balance of the raisedfunds are as follows:
Unit: RMB
| Item | Amount |
| Opening balance of raised funds (31 December 2019) | 1,279,840,027.27 |
| Less: raised funds that were directly used for project to be financed by raised funds | 233,633,406.28 |
| Add: Income from structured deposits in Q1-Q3 2020 | 24,059,315.07 |
| Net interest income from raised funds in Q1-Q3 2020 | 928,902.57 |
| Closing balance of raised funds (30 September 2020) | 1,071,194,838.63 |
2. Funds Raised through Corporate Bonds
On 7 July 2020, the Company issued RMB 2 billion of corporate bonds at the Shenzhen StockExchange, with a coupon rate of 3.36% and a term of three years. The funds raised would be used toacquire 1,606,855,919 ordinary shares in Zhanjiang Port (Group) Co., Ltd. (accounting for
27.3544% of Zhanjiang Port’s total issued shares) from the issuer’s wholly-owned subsidiaryChiwan Wharf Holdings (Hong Kong) Limited. As of 30 September 2020, the handover of the saidequity interests has been completed.VI 2020 Annual Operating Performance ForecastWarning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual netprofit, as well as their explanation.
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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 any of Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
√ Applicable □ Not applicable
| Date | Place | Way of communication | Type of communication party | Communication party | Index to basic information of researches |
| 9 July 2020 | China Merchants Port Building | One-on-one meeting | Institution | Haitong Securities, Golden Eagle Fund | Basic business condition, investments and the financial condition of the Company; Materials provided: None; Index: SZSE EasyIR (http://irm.cninfo.com.cn/ircs/index) |
| 31 August 2020 | China Merchants Port Building | Teleconferencing | Institution | Changjiang Securities, Huaxi Securities, Haitong Securities, Zheshang Securities, Huarong Securities, Golden Eagle Fund, Baoying Fund, Lion Fund, Zeyuan Capital, Xianhu Investment, Shanyuan Fund, Guanghuiyuan | |
| 10 September 2020 | Shanghai | Strategic Meeting of Brokers | Institution | Changjiang Securities | |
| 22 September 2020 | China Merchants Port Building | By phone | Institution | Ping An Insurance Asset Management | |
| 1 July 2020 to 30 September 2020 | China Merchants Port Building | By phone, or written inquiry (the EasyIR platform of SZSE or email) | Individual | - | |
| Times of communications | 24 | ||||
| Number of institutions communicated with | 16 |
| Number of individuals communicated with | 20 |
| Number of other communication parties | 0 |
| Tip-offs or leakages of substantial confidential information during the communications | No |
XII Progress Made on Internal ControlThe focuses of risk control for Q3 2020 are as follows:
1. Establishment and Evaluation of Internal Control System
(1) Establishment of internal control system
In Q3 2020, the Company issued six related systems including the Regulations for Marketing andBusiness of China Merchants Port Group Co., Ltd. (Interim) and Provisions on Establishment andManagement of Rules and Regulations of China Merchants Port Group Co., Ltd., which helped toimprove its management level control, organized the Company and its subsidiaries to attend the riskmanagement and internal control training so as to enhance their practical ability for risk control andcontinuously promoted the Company to perfect and optimize twenty business control flows.
(2) Launching circular carding of management for three core businessesThe Company further deepened the integration of internal control and business and strengthened theinternal control capacity. In Q3 2020, all units had completed the revision of systems regardingthree core businesses (procurement management, investment management and sales management)and planned to accomplish the carding and perfecting of related business process manuals beforethe end of the year.
(3) Carrying out the establishment and evaluation of internal control system on a regularbasisIn Q3 2020, all units conducted system carding and self-evaluation by sampling regarding internalcontrol 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 internalcontrol and reported problems in risk control so as to continuously promote all units’ internalcontrol system establishment and evaluation more regulated. During Q3 2020, the Company and itssubsidiaries completed the amendments to 86 systems, increased 51 systems and found 47 defectsof internal control among which 40 have been rectified. For the defects not rectified, therectification plan has been formulated.
(4) Conducting the supervision of internal control system as plannedThe Company worked out the “Three-year Coverage” work plan for supervising and inspectinginternal control systems for 22 subsidiaries incorporated into the Company’s internal control systemand intended to conduct the supervision and inspection of five units of them in 2020. In the first halfof the year, the Company had accomplished the supervision and inspection of Shunde, SCCT,Haixing and Zhanjiang Port Project, given the defect lists of internal control evaluation, specifiedthe rectification responsibility assignment in accordance with the defect lists and tracked therectification progress on a quarterly basis.
2. Risk Management
(1) Major risks for 2020 were monitored
In 2020, we combined the top ten risk matters and annual emphasis of the Company together,clarified the division of responsibility of each unit for risk prevention and control, tracked andreported the implementation and control effects on a quarterly basis. The Company completed theevaluation of its top ten major risks of 2021, formulated corresponding response plans, andorganized all units to complete the evaluation of and response to special risks for five types(liquidity/product design/bulk business/IT/foreign-related). Currently, the Company is working outthe emergency plans.
(2) Continuously following up the risk prevention and control brought by COVID-19epidemic and Sino-US trade
In the post-epidemic era, the global trade pattern is accelerating its differentiation. Sino-US tradefrictions have brought changes in the shipping line structure, the volume structure of businessesincluding container and bulk cargo and supply-demand imbalance in various trade regions. TheCompany’s work group of epidemic prevention and control kept an eye on the impact of theepidemic and set up relevant emergency plans. In addition, the Company monitored the compliancerisks from sanctions by US, timely grasped the risk exposure of emergencies, formulated responseplans in advance, and took necessary preventive measures.
(3) Continuously improving the establishment of systems regarding customer credit ratingsand early warning of accounts receivable risksDuring the Reporting Period, the project of customer credit rating system development entered thefinal stage of sprinting. The trial implementation and optimization of functions of the customercredit rating system were conducted simultaneously. In accordance with the guidelines for customercredit rating work, the first online credit rating for customers was fully launched to effectivelyimprove the capacity to identify the credit risks of customers.
(4) Specifically promoting the quantitative management of overseas risksDuring the Reporting Period, the Company accomplished the overall plan design for thequantitative management for overseas risks in which the Company set up the early warningindicators and thresholds for specific overseas risks, selected top 10 major overseas risks of theCompany and matched them with appropriate indicators. Furthermore, the Company optimized thequantitative scoring template for risk indicators and data indexes (increasing the evaluationindicator from the dimension of the Company) and continuously followed up the countermeasuresof indexes for preventing and controlling overseas risks.XIII Deposits in and Loans Provided by a Finance CompanyThe Proposal on Signing Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. wasreviewed and approved on the 2
nd Meeting of the 9
thBoard of Directors held by the Company on 23
August 2017, in which, the Company was agreed to signed the Financial Service Agreement withSinotrans & CSC Finance Co., Ltd. (renamed China Merchants Group Finance Co., Ltd. fromAugust 2017) with the period of three years.The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement toFinancial Service Agreement with China Merchants Group Finance Co., Ltd and the Related-partyTransactions was reviewed and approved on the 5
th Meeting of the 9
thBoard of Directors held bythe Company on 28 March 2019, in which, the Company was agreed to signed SupplementaryAgreement to Financial Service Agreement with China Merchants Group Finance Co., Ltd.The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement IIto Financial Service Agreement with China Merchants Group Finance Co., Ltd and theRelated-party Transactions was reviewed and approved on the 4
thExtraordinary General Meeting of2019 held by the Company on 11 December 2019, in which, the Company was agreed to signedSupplementary Agreement II to Financial Service Agreement with China Merchants Group FinanceCo., Ltd.At the end of the Reporting Period, deposits in and loans provided by China Merchants GroupFinance Co., Ltd. were as follows:
Unit: RMB’0,000
| Item | 31 December 2019 | Q1-Q3 Increase | Q1-Q3 Decrease | Closing balance |
| I. Deposits in China Merchants Group Finance Co., Ltd. | 89,006.52 | 496,106.36 | 485,087.75 | 100,025.13 |
| II. Loans provided by China Merchants Group Finance Co., Ltd. | 121,756.34 | 91,103.95 | 122,407.94 | 90,452.35 |
Part IV Financial StatementsI Financial Statements
1. Consolidated Balance Sheet
Prepared by China Merchants Port Group Co., Ltd.
30 September 2020
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 |
| Current assets: | ||
| Cash and bank balances | 8,628,774,554.40 | 7,734,948,210.26 |
| Notes receivable | 16,322,866.61 | 38,192,250.02 |
| Accounts receivable | 1,793,332,566.08 | 1,356,460,129.90 |
| Accounts receivable financing | 188,493,394.44 | 260,760,537.45 |
| Prepayments | 64,402,404.81 | 55,034,019.81 |
| Other receivables | 2,821,563,627.82 | 2,129,378,252.50 |
| Including: Interest receivable | - | 159,794.48 |
| Dividends receivable | 324,843,717.00 | 459,352,522.24 |
| Inventories | 219,748,883.42 | 163,980,192.08 |
| Assets held for sale | - | 188,404,228.34 |
| Non-current assets due within one year | 25,707,051.04 | 808,893,013.06 |
| Other current assets | 2,212,932,210.73 | 2,298,792,661.70 |
| Total current assets | 15,971,277,559.35 | 15,034,843,495.12 |
| Non-current Assets: | ||
| Long-term receivables | 4,132,143,210.81 | 1,098,831,799.90 |
| Long-term equity investments | 62,405,870,952.18 | 57,916,539,383.26 |
| Other investments in equity instruments | 163,408,072.00 | 163,561,272.00 |
| Other non-current financial assets | 3,762,812,016.75 | 2,385,363,537.39 |
| Investment properties | 5,617,418,825.41 | 5,760,262,674.40 |
| Fixed assets | 26,091,936,559.02 | 27,519,962,529.29 |
| Construction in progress | 6,648,935,465.37 | 6,334,141,441.88 |
| Right-of-use assets | 9,434,390,997.22 | 9,633,325,390.46 |
| Intangible assets | 17,980,433,708.37 | 19,693,715,554.10 |
| Item | 30 September 2020 | 31 December 2019 |
| Development Expenditure | 53,755,418.76 | 37,399,092.28 |
| Goodwill | 7,000,968,560.23 | 8,023,659,694.81 |
| Long-term prepaid expenses | 696,477,512.48 | 711,911,011.67 |
| Deferred tax assets | 367,875,080.73 | 300,435,502.27 |
| Other non-current assets | 2,103,275,790.02 | 2,082,965,467.04 |
| Total non-current assets | 146,459,702,169.35 | 141,662,074,350.75 |
| Total assets | 162,430,979,728.70 | 156,696,917,845.87 |
| Current liabilities: | ||
| Short-term borrowings | 11,393,195,390.47 | 9,439,099,793.47 |
| Notes payable | 15,643,907.50 | 76,455,949.01 |
| Accounts payable | 477,699,787.19 | 591,112,466.39 |
| Receipts in advance | 33,361,667.98 | 28,826,687.37 |
| Contract liabilities | 101,635,867.89 | 85,831,002.52 |
| Employee benefits payable | 729,220,270.43 | 634,718,784.64 |
| Taxes payable | 2,124,859,298.82 | 1,898,076,342.74 |
| Other payables | 3,539,052,507.96 | 2,223,754,677.96 |
| Including: Dividends payable | 1,177,405,149.94 | 150,286,550.81 |
| Non-current liabilities due within one year | 3,026,870,677.93 | 6,104,339,856.79 |
| Other current liabilities | 3,198,796,967.04 | 885,956,581.63 |
| Total current liabilities | 24,640,336,343.21 | 21,968,172,142.52 |
| Non-current Liabilities: | ||
| Long-term borrowings | 7,968,013,671.27 | 6,313,735,540.33 |
| Bonds payable | 22,425,805,093.05 | 20,930,681,967.19 |
| Lease liabilities | 1,463,329,716.35 | 1,647,129,968.61 |
| Long-term payables | 1,763,248,152.75 | 1,935,245,003.21 |
| Projected benefits obligation | 465,931,545.65 | 471,482,138.63 |
| Provisions | 83,331,211.73 | 76,242,559.95 |
| Deferred income | 1,120,164,736.35 | 1,147,752,857.17 |
| Deferred tax liabilities | 3,657,071,370.17 | 3,961,752,749.17 |
| Other non-current liabilities | 2,612,264,667.67 | 3,254,515,306.85 |
| Total non-current liabilities | 41,559,160,164.99 | 39,738,538,091.11 |
| Total liabilities | 66,199,496,508.20 | 61,706,710,233.63 |
| Owners’ equity: |
| Item | 30 September 2020 | 31 December 2019 |
| Share capital | 1,922,365,124.00 | 1,922,365,124.00 |
| Capital reserve | 22,461,491,922.08 | 22,296,485,467.35 |
| Other comprehensive income | -915,179,078.13 | -355,944,565.91 |
| Special reserve | 24,461,718.38 | 12,386,734.70 |
| Surplus reserve | 630,345,307.43 | 630,345,307.43 |
| Unappropriated profit | 11,858,016,826.57 | 11,467,166,351.85 |
| Total owners' equity attributable to equity holders of the parent | 35,981,501,820.33 | 35,972,804,419.42 |
| Total minority interests | 60,249,981,400.17 | 59,017,403,192.82 |
| Total owners’ equity | 96,231,483,220.50 | 94,990,207,612.24 |
| Total liabilities and owners’ equity | 162,430,979,728.70 | 156,696,917,845.87 |
The financial statements on pages 18 to 32 were signed by the following:
Legal Representative: Bai JingtaoChief Financial Officer: Lu YongxinHead of Accounting Department: Sun Ligan
2. Balance Sheet of the Company
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 |
| Current Assets: | ||
| Cash and bank balances | 777,935,771.79 | 690,685,211.42 |
| Prepayments | 50,356.08 | - |
| Other receivables | 1,030,388,875.16 | 805,534,763.27 |
| Including: Dividends receivable | 318,972,893.86 | 207,259,421.40 |
| Other current assets | 804,149,189.97 | 1,107,292,458.33 |
| Total current assets | 2,612,524,193.00 | 2,603,512,433.02 |
| Non-current Assets: | ||
| Long-term receivables | 59,131,828.60 | 61,004,284.75 |
| Long-term equity investments | 35,076,278,506.31 | 30,266,376,582.23 |
| Other investments in equity instruments | 155,535,435.00 | 155,688,635.00 |
| Other non-current financial assets | 1,425,863,948.15 | - |
| Fixed assets | 584,522.21 | 672,842.27 |
| Construction in progress | 6,914,076.12 | 5,803,169.37 |
| Intangible assets | 52,876,136.29 | 54,692,581.18 |
| Deferred tax assets | 10,812,131.06 | 928,465.21 |
| Total non-current assets | 36,787,996,583.74 | 30,545,166,560.01 |
| Total assets | 39,400,520,776.74 | 33,148,678,993.03 |
| Current Liabilities: | ||
| Short-term borrowings | 200,128,333.34 | 300,378,812.50 |
| Employee benefits payable | 23,905,199.49 | 6,000,000.00 |
| Taxes payable | 168,688,284.88 | 209,282,889.78 |
| Other payables | 1,132,900,094.34 | 628,013,119.77 |
| Including: Dividends payable | 707,140,917.30 | 34,577,578.12 |
| Non-current liabilities due within one year | 35,160,000.00 | 35,832,000.00 |
| Other current liabilities | 3,027,588,116.13 | 715,766,708.20 |
| Total current liabilities | 4,588,370,028.18 | 1,895,273,530.25 |
| Non-current Liabilities: | ||
| Bonds payable | 2,015,866,666.67 | - |
| Deferred tax liabilities | 35,126,558.75 | 35,164,858.75 |
| Total non-current liabilities | 2,050,993,225.42 | 35,164,858.75 |
| Total liabilities | 6,639,363,253.60 | 1,930,438,389.00 |
| Owners’ equity: | ||
| Share capital | 1,922,365,124.00 | 1,922,365,124.00 |
| Capital reserve | 27,590,215,618.67 | 27,576,242,527.73 |
| Other comprehensive income | 105,479,676.25 | 105,594,576.25 |
| Item | 30 September 2020 | 31 December 2019 |
| Surplus reserve | 630,345,307.43 | 630,345,307.43 |
| Unappropriated profit | 2,512,751,796.79 | 983,693,068.62 |
| Total owners’ equity | 32,761,157,523.14 | 31,218,240,604.03 |
| Total liabilities and owners’ equity | 39,400,520,776.74 | 33,148,678,993.03 |
3. Consolidated Income Statement for Q3
Unit: RMB
| Item | Q3 2020 | Q3 2019 |
| I. Revenues | 3,239,264,119.14 | 3,178,406,039.64 |
| Including: Operating income | 3,239,264,119.14 | 3,178,406,039.64 |
| II. Costs and expenses | 2,708,193,928.01 | 3,027,193,739.93 |
| Including: Operating costs | 1,947,962,279.25 | 1,970,062,313.17 |
| Business taxes and levies | 41,745,101.18 | 36,181,418.94 |
| Administrative expenses | 383,232,897.63 | 349,036,690.00 |
| Research and development expenses | 36,245,207.19 | 32,360,952.71 |
| Financial expenses | 299,008,442.76 | 639,552,365.11 |
| Including: Interest expenses | 487,072,314.33 | 537,231,578.17 |
| Interest income | 89,246,351.73 | 66,340,293.70 |
| Add: Other income | 29,797,699.55 | 40,977,175.67 |
| Investment income (“-” for loss) | 1,010,625,948.66 | 812,511,406.87 |
| Including: Income from investments in associates and joint ventures | 967,164,540.27 | 800,883,928.29 |
| Gains from changes in fair value (“-” for loss) | -192,580,282.54 | -365,186,387.23 |
| Impairment losses of credit (“-” for loss) | 2,750,332.72 | -300,605.98 |
| Impairment losses of assets (“-” for loss) | - | 96,054.00 |
| Gains on disposal of assets (“-” for loss) | 133,467,865.16 | 1,827,593.76 |
| III. Operating profit (“-” for loss) | 1,515,131,754.68 | 641,137,536.80 |
| Add: Non-operating income | 9,067,521.21 | 7,715,394.72 |
| Less: Non-operating expenses | 7,914,189.41 | 9,154,852.76 |
| IV. Gross profit (“-” for loss) | 1,516,285,086.48 | 639,698,078.76 |
| Less: Income tax expenses | 98,239,202.99 | 149,312,790.43 |
| V. Net profit (“-” for net loss) | 1,418,045,883.49 | 490,385,288.33 |
| (I) Categorization by continuity of operation | ||
| 1. Net profit of continued operation (“-” for loss) | 1,418,045,883.49 | 490,385,288.33 |
| 2. Net profit of discontinued operation (“-” for loss) | - | - |
| (II) Categorization by attribution of ownership | ||
| 1. Net profit attributable to owners of the parent | 642,339,845.93 | 171,091,424.23 |
| 2. Profit or loss attributable to minority shareholder | 775,706,037.56 | 319,293,864.10 |
| Item | Q3 2020 | Q3 2019 |
| VI. Amount of other comprehensive net income after tax | -690,591,511.19 | -226,046,371.51 |
| Amount of other comprehensive net income after tax attributable to equity holders of the parent | -179,505,224.93 | -93,181,249.64 |
| (I) Other comprehensive income that will not be reclassified to profit or loss | 201,687.72 | -138,951.49 |
| 1. Other comprehensive income under the equity method that will not be reclassified to profit or loss | 204,087.72 | 123,548.51 |
| 2. Fair value changes of other investments in equity instruments | -2,400.00 | -262,500.00 |
| (II) Other comprehensive income that will be reclassified subsequently to profit or loss | -179,706,912.65 | -93,042,298.15 |
| 1. Other comprehensive income under the equity method that will be reclassified to profit or loss | 19,811,358.64 | -14,204,312.79 |
| 2. Translation differences of financial statements denominated in foreign currencies | -199,518,271.29 | -78,837,985.36 |
| Amount of other comprehensive net income after tax attributable to minority shareholders | -511,086,286.26 | -132,865,121.87 |
| VII. Total comprehensive income attributable to: | 727,454,372.30 | 264,338,916.82 |
| Owners of the parent | 462,834,621.00 | 77,910,174.59 |
| Minority shareholders | 264,619,751.30 | 186,428,742.23 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.334 | 0.095 |
| (II) Diluted earnings per share | 0.334 | 0.095 |
4. Income Statement of the Company for Q3
Unit: RMB
| Item | Q3 2020 | Q3 2019 |
| I. Operating income | 6,641.78 | 2,255,597.58 |
| Less: Operating costs | 566,489.91 | 3,935,675.52 |
| Business taxes and levies | 1,504,414.60 | 250,040.88 |
| Administrative expenses | 28,189,116.51 | 4,351,326.63 |
| Financial expenses | 18,944,327.94 | 9,001,535.76 |
| Including: Interest expenses | 30,447,454.47 | 9,942,358.24 |
| Interest income | 11,504,967.67 | 3,565,984.24 |
| Add: Other income | - | 67,712.05 |
| Investment income (“-” for loss) | 1,392,179,119.82 | 25,630,162.05 |
| Including: Income from investments in associates and joint ventures | 14,599,956.58 | 14,807,577.05 |
| Gains from changes in fair value (“-” for loss) | -51,841,185.55 | - |
| Gains on disposal of assets (“-” for loss) | - | 502,371.58 |
| II. Operating profit (“-” for loss) | 1,291,140,227.09 | 10,917,264.47 |
| Add: Non-operating income | 0.82 | 0.10 |
| Less: Non-operating expenses | - | 13,063.89 |
| III. Gross profit (“-” for loss) | 1,291,140,227.91 | 10,904,200.68 |
| Less: Income tax expenses | -16,330,283.27 | -3,681,490.33 |
| IV. Net profit (“-” for loss) | 1,307,470,511.18 | 14,585,691.01 |
| 1. Net profit of continued operation (“-” for loss) | 1,307,470,511.18 | 14,585,691.01 |
| 2. Net profit of discontinued operation (“-” for loss) | - | - |
| V. Amount of other comprehensive net income after tax | -2,400.00 | -262,500.00 |
| (I) Other comprehensive income that will not be reclassified to profit or loss | -2,400.00 | -262,500.00 |
| 1. Other comprehensive income under the equity method that will not be reclassified to profit or loss | - | - |
| 2. Fair value changes of other investments in equity instruments | -2,400.00 | -262,500.00 |
| (II) Other comprehensive income that will be reclassified subsequently to profit or loss | - | - |
| 1. Other comprehensive income under the equity method that will be reclassified to profit or loss | - | - |
| 2. Translation differences of financial statements denominated in foreign currencies | - | - |
| VI. Total comprehensive income | 1,307,468,111.18 | 14,323,191.01 |
5. Consolidated income statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| I. Revenues | 9,161,761,277.62 | 9,012,759,460.97 |
| Including: Operating income | 9,161,761,277.62 | 9,012,759,460.97 |
| II. Costs and expenses | 8,147,146,208.61 | 8,312,063,125.76 |
| Including: Operating costs | 5,664,045,985.15 | 5,578,083,009.08 |
| Business taxes and levies | 119,123,180.33 | 132,656,930.36 |
| Administrative expenses | 1,120,933,175.00 | 996,281,408.36 |
| Research and development expenses | 102,375,492.00 | 92,379,788.00 |
| Financial expenses | 1,140,668,376.13 | 1,512,661,989.99 |
| Including: Interest expenses | 1,485,022,904.04 | 1,575,186,876.47 |
| Interest income | 231,662,216.17 | 205,694,115.16 |
| Add: Other income | 85,394,974.94 | 114,069,681.43 |
| Investment income (“-” for loss) | 2,515,967,337.44 | 3,437,560,891.43 |
| Including: Income from investments in associates and joint ventures | 2,361,769,311.92 | 2,596,836,906.37 |
| Gains from changes in fair value (“-” for loss) | -488,315,935.84 | 278,440,925.78 |
| Impairment losses of credit (“-” for loss) | -885,704.78 | 7,398,528.80 |
| Impairment losses of assets (“-” for loss) | 947,693.77 | 121,105.16 |
| Gains on disposal of assets (“-” for loss) | 693,724,248.54 | 4,171,684,760.29 |
| III. Operating profit (“-” for loss) | 3,821,447,683.08 | 8,709,972,228.10 |
| Add: Non-operating income | 36,812,886.60 | 22,095,013.06 |
| Less: Non-operating expenses | 31,024,511.92 | 16,661,227.05 |
| IV. Gross profit (“-” for loss) | 3,827,236,057.76 | 8,715,406,014.11 |
| Less: Income tax expenses | 611,495,691.87 | 2,167,283,540.59 |
| V. Net profit (“-” for net loss) | 3,215,740,365.89 | 6,548,122,473.52 |
| (I) Categorization by continuity of operation | ||
| 1. Net profit of continued operation (“-” for loss) | 3,215,740,365.89 | 6,548,122,473.52 |
| 2. Net profit of discontinued operation (“-” for loss) | - | - |
| (II) Categorization by attribution of ownership | ||
| 1. Net profit attributable to owners of the parent | 1,275,138,431.76 | 2,470,272,754.81 |
| 2. Profit or loss attributable to minority shareholder | 1,940,601,934.13 | 4,077,849,718.71 |
| VI. Amount of other comprehensive net income after tax | -1,796,050,700.29 | -1,142,062,566.11 |
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| Amount of other comprehensive net income after tax attributable to equity holders of the parent | -559,234,512.22 | -425,793,792.72 |
| (I) Other comprehensive income that will not be reclassified to profit or loss | -1,261,655.72 | 15,491,398.99 |
| 1. Other comprehensive income under the equity method that will not be reclassified to profit or loss | -1,146,755.72 | 15,048,898.99 |
| 2. Fair value changes of other investments in equity instruments | -114,900.00 | 442,500.00 |
| (II) Other comprehensive income that will be reclassified subsequently to profit or loss | -557,972,856.50 | -441,285,191.71 |
| 1. Other comprehensive income under the equity method that will be reclassified to profit or loss | 31,965,904.16 | -39,983,917.59 |
| 2. Translation differences of financial statements denominated in foreign currencies | -589,938,760.66 | -401,301,274.12 |
| Amount of other comprehensive net income after tax attributable to minority shareholders | -1,236,816,188.07 | -716,268,773.39 |
| VII. Total comprehensive income attributable to: | 1,419,689,665.60 | 5,406,059,907.41 |
| Owners of the parent | 715,903,919.54 | 2,044,478,962.09 |
| Minority shareholders | 703,785,746.06 | 3,361,580,945.32 |
| VIII. Earnings per share | ||
| (I) Basic earnings per share | 0.663 | 1.377 |
| (II) Diluted earnings per share | 0.663 | 1.377 |
6. Income Statement of the Company for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| I. Operating income | 100,981.40 | 92,032,385.87 |
| Less: Operating costs | 1,699,469.73 | 76,074,166.52 |
| Business taxes and levies | 1,504,414.60 | 1,636,938.34 |
| Administrative expenses | 84,730,813.85 | 41,809,584.57 |
| Financial expenses | 20,250,852.28 | 37,124,831.40 |
| Including: Interest expenses | 46,275,853.81 | 32,276,680.84 |
| Interest income | 29,376,210.58 | 10,414,141.65 |
| Add: Other income | 355,292.70 | 279,433.82 |
| Investment income (“-” for loss) | 2,718,811,035.05 | 1,012,144,142.26 |
| Including: Income from investments in associates and joint ventures | 42,829,109.84 | 52,654,083.88 |
| Gains from changes in fair value (“-” for loss) | -39,534,663.40 | - |
| Gains on disposal of assets (“-” for loss) | - | 502,371.58 |
| II. Operating profit (“-” for loss) | 2,571,547,095.29 | 948,312,812.70 |
| Add: Non-operating income | 5,000.82 | 35,710.36 |
| Less: Non-operating expenses | - | 81,092.18 |
| III. Gross profit (“-” for loss) | 2,571,552,096.11 | 948,267,430.88 |
| Less: Income tax expenses | 158,205,410.89 | 144,323,146.24 |
| IV. Net profit (“-” for loss) | 2,413,346,685.22 | 803,944,284.64 |
| 1. Net profit of continued operation (“-” for loss) | 2,413,346,685.22 | 803,944,284.64 |
| 2. Net profit of discontinued operation (“-” for loss) | - | - |
| V. Amount of other comprehensive net income after tax | -114,900.00 | 442,500.00 |
| (I) Other comprehensive income that will not be reclassified to profit or loss | -114,900.00 | 442,500.00 |
| 1. Other comprehensive income under the equity method that will not be reclassified to profit or loss | - | - |
| 2. Fair value changes of other investments in equity instruments | -114,900.00 | 442,500.00 |
| (II) Other comprehensive income that will be reclassified subsequently to profit or loss | - | - |
| 1. Other comprehensive income under the equity method that will be reclassified to profit or loss | - | - |
| 2. Translation differences of financial statements denominated in foreign currencies | - | - |
| VI. Total comprehensive income | 2,413,231,785.22 | 804,386,784.64 |
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of goods and rendering of services | 8,868,939,926.02 | 8,883,879,809.23 |
| Refunds of taxes | 14,635,440.12 | 2,983,000.88 |
| Cash received relating to other operating activities | 787,885,971.67 | 826,743,586.32 |
| Sub-total of cash inflows | 9,671,461,337.81 | 9,713,606,396.43 |
| Cash paid for goods purchased or services received | 2,557,233,232.03 | 2,607,802,429.06 |
| Cash paid to and on behalf of employees | 2,037,600,197.12 | 1,884,322,010.85 |
| Tax payments | 782,279,015.53 | 697,239,343.97 |
| Cash paid relating to other operating activities | 557,534,872.72 | 567,689,626.20 |
| Sub-total of cash outflows | 5,934,647,317.40 | 5,757,053,410.08 |
| Net Cash Flows from Operating Activities | 3,736,814,020.41 | 3,956,552,986.35 |
| II. Cash Flows from Investing Activities: | ||
| Cash received from disposal and recovery of investments | 5,802,647,276.82 | - |
| Cash received from investment income | 1,375,104,379.13 | 1,409,672,809.32 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 373,091,292.57 | 6,135,808,673.12 |
| Net proceeds from the disposal of subsidiaries and other business units | - | 1,000,000.00 |
| Cash received relating to other investing activities | 978,146,461.61 | 4,062,782,125.98 |
| Sub-total of cash inflows | 8,528,989,410.13 | 11,609,263,608.42 |
| Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets | 1,855,949,642.39 | 2,451,110,448.40 |
| Cash paid to acquire investments | 10,944,362,282.33 | 7,828,684,852.29 |
| Cash paid relating to other investing activities | 3,011,289,010.12 | 1,303,951,129.78 |
| Sub-total of cash outflows | 15,811,600,934.84 | 11,583,746,430.47 |
| Net Cash Flows from Investing Activities | -7,282,611,524.71 | 25,517,177.95 |
| III. Cash Flows from Financing Activities: | ||
| Cash received from capital contributions | - | 27,255,000.00 |
| Including: cash received from capital contributions from minority owners of subsidiary | - | 27,255,000.00 |
| Cash received from borrowings | 23,726,548,723.25 | 12,838,230,272.62 |
| Cash received relating to other financing activities | 1,877,099,037.43 | - |
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| Sub-total of cash inflows | 25,603,647,760.68 | 12,865,485,272.62 |
| Repayments of borrowings | 17,803,978,213.32 | 11,791,203,049.88 |
| Dividends paid, profit distributed or interest paid | 2,537,837,832.05 | 2,903,723,201.62 |
| Including: Dividends paid, profit distributed to minority shareholders. | 787,156,872.11 | 1,343,615,386.61 |
| Cash paid relating to other financing activities | 757,948,189.24 | 281,985,995.17 |
| Sub-total of cash outflows | 21,099,764,234.61 | 14,976,912,246.67 |
| Net Cash Flows from Financing Activities | 4,503,883,526.07 | -2,111,426,974.05 |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | -64,516,925.71 | 18,235,446.81 |
| V. Net Increase in Cash and Cash Equivalents | 893,569,096.06 | 1,888,878,637.06 |
| Add: Opening Balance of Cash and Cash Equivalents | 7,714,157,995.87 | 5,373,281,504.75 |
| VI. Closing Balance of Cash and Cash Equivalents | 8,607,727,091.93 | 7,262,160,141.81 |
8. Cash Flow Statement of the Company for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of goods and rendering of services | - | 104,712,136.96 |
| Cash received relating to other operating activities | 52,892,891.24 | 7,971,877.19 |
| Sub-total of cash inflows | 52,892,891.24 | 112,684,014.15 |
| Cash paid for goods purchased or services received | - | 35,832,461.34 |
| Cash paid to and on behalf of employees | 36,274,473.50 | 81,295,085.51 |
| Tax payments | 210,447,046.56 | 19,133,226.24 |
| Cash paid relating to other operating activities | 38,477,700.80 | 278,977,499.75 |
| Sub-total of cash outflows | 285,199,220.86 | 415,238,272.84 |
| Net Cash Flows from Operating Activities | -232,306,329.62 | -302,554,258.69 |
| II. Cash Flows from Investing Activities: | ||
| Cash received from disposal and recovery of investments | 2,150,000,000.00 | - |
| Cash received from investment income | 1,489,109,075.52 | 281,458,359.20 |
| Cash received relating to other investing activities | 247,303,477.07 | 228,867,355.24 |
| Sub-total of cash inflows | 3,886,412,552.59 | 510,325,714.44 |
| Cash paid to acquire or construct fixed assets, intangible assets and other long-term assets | 1,262,452.00 | 1,916,637.68 |
| Cash paid to acquire investments | 4,315,635,262.00 | 375,334,390.00 |
| Net payments for the acquisition of subsidiaries and other business units | 3,006,793,109.07 | 18,825,000.00 |
| Cash paid relating to other investing activities | 346,801,923.02 | 235,800,000.00 |
| Sub-total of cash outflows | 7,670,492,746.09 | 631,876,027.68 |
| Net Cash Flows from Investing Activities | -3,784,080,193.50 | -121,550,313.24 |
| III. Cash Flows from Financing Activities: | ||
| Including: cash received from capital contributions from minority owners of subsidiary | 5,397,833,243.33 | 1,660,000,000.00 |
| Cash received relating to other financing activities | 544,400,000.00 | - |
| Sub-total of cash inflows | 5,942,233,243.33 | 1,660,000,000.00 |
| Repayments of borrowings | 1,215,904,918.03 | 1,365,720,000.00 |
| Dividends paid, profit distributed or interest paid | 184,822,435.51 | 63,755,911.40 |
| Cash paid relating to other financing activities | 437,554,375.82 | 4,089,602.56 |
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| Sub-total of cash outflows | 1,838,281,729.36 | 1,433,565,513.96 |
| Net Cash Flows from Financing Activities | 4,103,951,513.97 | 226,434,486.04 |
| IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents | -314,430.48 | 736,370.74 |
| V. Net Increase in Cash and Cash Equivalents | 87,250,560.37 | -196,933,715.15 |
| Add: Opening Balance of Cash and Cash Equivalents | 690,685,211.42 | 389,841,854.93 |
| VI. Closing Balance of Cash and Cash Equivalents | 777,935,771.79 | 192,908,139.78 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the NewAccounting Standards Governing Revenue and Leases
□ Applicable √ Not applicable
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020of the New Accounting Standards Governing Revenue and Leases
□ Applicable √ Not applicable
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 DirectorsChina Merchants Port Group Co., Ltd
31 October 2020