CHINA MERCHANTS PORT GROUP CO., LTD.THE REPORT FOR THE FIRST QUARTER OF 2020
Date of Disclosure: 30 April 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. (hereinafter referredto as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents ofthis Report and its summary, and shall be jointly and severally liable for any misrepresentations,misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Report and itssummary.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 FinancialStatements carried in this Report are factual, accurate and complete.Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn have been designated by theCompany for information disclosure. And all information about the Company shall be subject towhat’s disclosed on the aforesaid media. Investors are kindly reminded to pay attention to.This Report and its summary have been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Definitions
| Term | Definition |
| The “Company”, “CMPort” or “we” | China Merchants Port Group Co., Ltd., formerly known as “Shenzhen Chiwan Wharf Holdings Limited” |
| CMG | China Merchants Group Co., Limited |
| CMID | China Merchants Investment Development Company Limited |
| CMPort Holdings | China Merchants Port Holdings Company Limited (00144.HK) |
| Broadford Global | Broadford Global Limited, a wholly-owned subsidiary of CMG Hong Kong |
| CMGD | China Merchants Gangtong Development (Shenzhen) Co., Ltd., a Broadford Global Wholly-owned subsidiary in Shenzhen |
| Zhanjiang Port | Zhanjiang Port (Group) Co., Ltd. |
| TCP | TCP Participa??es S.A. |
| Haixing Harbor | Shenzhen Haixing Harbor Development Co., Ltd. |
| SZSE | Shenzhen Stock Exchange |
| CMG Finance | China Merchants Group Finance Co., Ltd. |
| The cninfo website | www.cninfo.com.cn |
| TEU | Twenty Foot Equivalent Unit |
| RMB RMB’0,000 RMB’00,000,000 | Expressed in the Chinese currency of Renminbi Expressed in tens of thousands of Renminbi Expressed in hundreds of millions of Renminbi (unless otherwise specified) |
Part II Key Corporate Information
I Key Accounting Data and Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Q1 2020 | Q1 2019 | Change (%) | |
| Operating revenue (RMB) | 2,886,025,618.74 | 2,702,894,522.99 | 6.78% |
| Net profit attributable to the listed company’s shareholders (RMB) | 149,871,785.99 | 814,944,249.12 | -81.61% |
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 199,867,940.76 | 262,409,245.18 | -23.83% |
| Net cash generated from/used in operating activities (RMB) | 847,165,371.60 | 1,148,963,121.64 | -26.27% |
| Basic earnings per share (RMB/share) | 0.08 | 0.45 | -82.22% |
| Diluted earnings per share (RMB/share) | 0.08 | 0.45 | -82.22% |
| Weighted average return on equity (%) | 0.42% | 2.62% | -2.20% |
| 31 March 2020 | 31 December 2019 | Change (%) | |
| Total assets (RMB) | 159,316,790,017.99 | 156,696,917,845.87 | 1.67% |
| Equity attributable to the listed company’s shareholders (RMB) | 35,468,379,630.77 | 35,972,804,419.42 | -1.40% |
Total share capital up to the former trading date before the disclosure:
| Total share capital up to the former trading date before the disclosure (share) | 1,922,365,124 |
Fully diluted EPS calculated by the newest share capital:
| Fully diluted EPS calculated by the newest share capital (RMB/share) | 0.08 |
Exceptional gains and losses:
Unit: RMB
| Item | Q1 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 13,807,774.32 | |
| 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) | 34,972,514.35 |
| Capital occupation charges on non-financial enterprises that are recorded into current profit or loss | 298,788.06 | |
| Gain or loss on fair-value changes in held-for-trading financial assets and liabilities, as well as derivative financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities, derivative financial assets and liabilities, as well as investments in other debt obligations (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | -188,668,882.47 | Gain or loss on fair value changes arising from holding of financial assets and financial liabilities at fair value through profit or loss in this year |
| Non-operating income and expense other than the above | -4,404,495.99 | |
| Less: Income tax effects | -18,033,291.35 | |
| Non-controlling interests effects (net of tax) | -75,964,855.61 | |
| Total | -49,996,154.77 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2020
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
| Number of ordinary shareholders at the period-end | 35,454 (including 24,213 A-shareholders and 11,241 B-shareholders） | Number of preferred shareholders with resumed voting rights at the period-end (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 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-SHENZHEN INFRASTRUCTURE INVESTMENT FUND PARTNERSHIP (LIMITED PARTNERSHIP) | Fund and wealth management products | 3.37% | 64,850,182 | 64,850,182 | 0 | |
| CHINA-AFRICA DEVELOPMENT FUND | 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 | 1.37% | 26,423,854 | 0 | Unknown | |
| NORGES BANK | Foreign legal person | 0.15% | 2,802,863 | 0 | Unknown | |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | State-owned legal person | 0.12% | 2,401,255 | 0 | Unknown | |
| MAI SHUQING | Domestic natural person | 0.12% | 2,376,747 | 0 | Unknown | |
| SHEN HUAILING | Domestic natural person | 0.08% | 1,519,849 | 0 | Unknown | |
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares held | Shares by type | ||||
| Type | Shares | |||||
| CHINA MERCHANTS GANGTONG DEVELOPMENT (SHENZHEN) CO., LTD. | 370,878,000 | RMB-denominated ordinary stock | 370,878,000 | |||
| BROADFORD GLOBAL LIMITED | 55,314,208 | Domestically listed foreign stock | 55,314,208 | |||
| CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 | 26,423,854 | Domestically listed foreign stock | 26,423,854 | |||
| NORGES BANK | 2,802,863 | Domestically listed foreign stock | 2,802,863 | |||
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | 2,401,255 | Domestically listed foreign stock | 2,401,255 | |||
| MAI SHUQING | 2,376,747 | RMB-denominated ordinary stock | 2,376,747 | |||
| SHEN HUAILING | 1,519,849 | Domestically listed foreign stock | 1,519,849 | |||
| Hong Kong Securities Clearing Company Ltd. | 1,444,562 | RMB-denominated ordinary stock | 1,444,562 | |||
| INDUSTRIAL AND COMMERCIAL BANK OF CHINA-FULLGOAL CHINA SECURITIES DIVIDEND INDEX STRENGTHEN SECURITIES INVESTMENT FUND | 1,260,101 | RMB-denominated ordinary stock | 1,260,101 | |||
| VANGUARD EMERGING MARKETS STOCK INDEX FUND | 1,232,036 | Domestically listed foreign stock | 1,232,036 | |||
| Related or acting-in-concert parties among the shareholders above | China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary of Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China Merchants Investment Development Company Limited. The Company does not know whether the other unrestricted shareholders are related parties or not. | |||||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | N/A |
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of theCompany conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 | Change (%) | Explanation of why |
| Notes receivable | 13,007,640.85 | 38,192,250.02 | -65.94% | Recovery of notes receivable of the Reporting Period at maturity |
| Accounts receivable financing | 174,011,799.01 | 260,760,537.45 | -33.27% | Recovery of bank acceptance bills of the Reporting Period measured at fair value at maturity and endorsement thereof |
| Prepayments | 76,914,879.35 | 55,034,019.81 | 39.76% | Payments for premiums and purchase of Haixing Project in the Reporting Period |
| Long-term receivables | 4,021,933,363.76 | 1,098,831,799.90 | 266.02% | Providing Phase I loan for Terminal Link SAS (hereinafter referred to as “TL”) in the Reporting Period |
| Short-term borrowings | 14,990,822,099.43 | 9,439,099,793.47 | 58.82% | New short-term borrowings used for supplementing working capital in the Reporting Period |
| Item | Q1 2020 | Q1 2019 | Change (%) | Explanation of why |
| Other income | 34,953,625.15 | 20,798,769.01 | 68.06% | Receiving rebates of unemployment insurance from the government for enterprises influenced by the epidemic in the Reporting Period |
| Investment income | 660,950,054.33 | 1,491,659,164.10 | -55.69% | Realizing the control over Zhanjiang Port in February of last year and recognizing investment income at fair value for the original long-term equity investment in Zhanjiang Port under equity method, but there is no such case in the Reporting Period |
| Gain on changes in fair value | -188,668,882.47 | 803,456,059.74 | -123.48% | Decrease in net gain on fair value of held-for-trading financial assets held in the Reporting Period |
| Income tax expense | 170,136,660.26 | 428,680,888.19 | -60.31% | Decrease in deferred income tax liabilities caused by the YoY decrease in gain on changes in fair value of equity held |
| Cash generated from other operating activities | 198,076,000.45 | 437,792,411.01 | -54.76% | Receiving the government subsidy for the western channel in Q1 2019 but there is no such case in the Reporting Period |
| Cash receipts from investments income | 211,664,358.76 | 78,044,109.23 | 171.21% | Increase in dividend income and interest of project borrowings obtained in the Reporting Period |
| Cash paid for investments | 2,746,841,398.03 | 415,845,100.00 | 560.54% | Paying TL the Phase I MCB in the Reporting Period |
| Other cash payments relating to investing activities | 3,792,979,774.69 | 255,659,104.33 | 1383.61% | Paying TL the Phase I loan in the Reporting Period |
| Cash generated from absorbing investments | - | 460,518,459.96 | -100.00% | Receiving equity investments by Zhanjiang Port from minority interests in Q1 2019 and there is no such case in the Reporting Period. |
| Cash generated from borrowings obtained | 8,281,485,148.10 | 5,720,896,211.18 | 44.76% | Increase in short-term borrowings obtained in the Reporting Period |
| Cash used in debt repayment | 3,167,336,858.98 | 6,241,679,082.60 | -49.26% | YoY decrease in repayments of matured debts |
| Cash used in other financing activities | 447,602,677.41 | 114,109,500.00 | 292.26% | Payment for purchasing 10% of equity in TCP Terminal in the Reporting Period |
II Progress, Influence and Solutions with regard to Significant Events
1. Stock Option Incentive Plan
The Company had completed registration for the grant of stock option (the first grant) under theStock Option Incentive Plan (Phase I) as at 13 March 2020. As of the end of the Reporting Period,review and approval procedures carried out in connection with the Stock Option Incentive Plan areas follows:
At the 2
ndmeeting of the Nomination, Remuneration and Appraisal Committee of the ninthsession of the Board of 2019 held on 10 October 2019, the following proposals were considered andapproved, including Stock Option Incentive Plan of CMPort (Draft) (hereinafter referred to as the“Stock Option Incentive Plan (Draft)”) and its summary, Stock Option Incentive Plan of CMPort(Phase I) (Draft) (hereinafter referred to as the “Stock Option Incentive Plan (Phase I) (Draft)”) andits summary, Management Measures for the Stock Option Incentive Plan of CMPort (hereinafterreferred to as the “Management Measures for the Stock Option Incentive Plan”), AppraisalMeasures for Implementing the Stock Option Incentive Plan and Implementation AppraisalMeasures of Stock Option Incentive Plan by China Merchants Port Group Co., Ltd. (hereinafterreferred to as “Appraisal Measures for Implementing the Stock Option Incentive Plan”)
(2) At the 9
thExtraordinary Meeting of the 9
thBoard in 2019 held on 11 October 2019, thefollowing proposals were reviewed and approved, including Stock Option Incentive Plan (Draft)and its summary, Stock Option Incentive Plan (Phase I) (Draft) and its summary, ManagementMeasures for the Stock Option Incentive Plan, Appraisal Measures for Implementing the StockOption Incentive Plan and Proposal on Requesting the General Meeting to Authorize the Board ofDirectors to Go Through Share Incentive Procedures, and independent directors expressedindependent opinions. At the 2
nd Extraordinary Meeting of the 9
thSupervisory Committee in 2019held on the same day, the following proposals were reviewed and approved, including Stock OptionIncentive Plan (Draft) and its summary, Stock Option Incentive Plan (Phase I) (Draft) and itssummary, Management Measures for the Stock Option Incentive Plan and Appraisal Measures forImplementing the Stock Option Incentive Plan, and List of Incentive Objects under the StockOption Incentive Plan (Phase I) was reviewed with opinions expressed.
(3) On 3 January 2020, the Company received Approval on the Implementation of Stock IncentivePlan of CMPort (GZKF [2019] No. 748) issued by the State-owned Assets Supervision andAdministration Commission of the State Council from China Merchants Group, the actualcontroller of the Company. In principle, approval was given to the Company for its implementationof the Stock Option Incentive Plan and performance appraisal goals under the Plan.
(4) At the 1
st Extraordinary Meeting of the 9
th
Board of Directors in 2020 held on 9 January 2020,Stock Option Incentive Plan (Phase I) (Revised Draft) and its summary were reviewed andapproved and independent directors expressed independent opinions. At the 1
stExtraordinaryMeeting of the 9
thSupervisory Committee in 2020 held on the same day, Stock Option IncentivePlan (Phase I) (Revised Draft) and its summary were reviewed and approved and List of Incentiveobjects under the Stock Option Incentive Plan (Phase I) (After Adjustment) was reviewed withopinions expressed.
(5) On 20 January 2020, the Company disclosed the List of Incentive Objects of Stock OptionIncentive Plan (Phase I). The Company published the names and positions of the incentive objects
for the first grant of the stock option in its internal OA system from 10 January to 19 January 2020.By the end of the publicity, the Company’s Supervisory Committee had not received any objectionagainst the incentive objects for the first grant. The Supervisory Committee reviewed the list ofincentive objects for the first grant, and disclosed Notes of the Supervisory Committee on theReview and Publicity of the List of Incentive Objects under the Stock Option Plan (Phase I) on 20January 2020.
(6) At the 1st extraordinary shareholders’ meeting of 2020 held on 3 February 2020, the followingproposals were considered and approved, including Stock Option Incentive Plan (Draft) and itssummary, Stock Option Incentive Plan (Phase I) (Revised Draft) and its summary, ManagementMeasures for the Stock Option Incentive Plan, Appraisal Measures for Implementing the StockOption Incentive Plan and Proposal on Requesting the General Meeting to Authorize the Board ofDirectors to Go Through Share Incentive Procedures. The Company’s Stock Option Incentive Planwas approved and the Board of Directors was authorized to determine the grant date, grant stockoption to the incentive objects when they meet the conditions and go through all proceduresrequired for the grant. On the same day, the Company disclosed Self-inspection Report on theTrading of the Company’s Shares by Insiders and Incentive Objects of the Stock Option IncentivePlan (Phase I) according to its verification of the trading engaged by the insiders and incentiveobjects.
(7) At the 2
nd Extraordinary Meeting of the 9
th
Board of Directors in 2020 and the 2
nd
ExtraordinaryMeeting of the 9
thSupervisory Committee in 2020 held on 3 February 2020, Announcement on theGrant of Stock Option (the First Grant) to Incentive Objects of the Stock Option Incentive Plan ofthe Company (Announcement No. 2020-014) was considered and approved respectively. TheCompany’s Board of Supervisors reviewed the list of incentive objects under the Stock OptionIncentive Plan (Phase I) on the grant date and expressed opinions, and independent directorsexpressed independent opinions.The Company had completed registration for the grant of stock option (the first grant) under the
Stock Option Incentive Plan (Phase I) as at 13 March 2020. On the next day, the Companypublished Announcement on Completion of the Grant of Stock Option (the First Grant) under theStock Option Incentive Plan (Phase I) of the Company (Announcement No. 2020-020).
2. Information Disclosure Index
In the Reporting Period, the significant matters disclosed in Securities Time, Ta Kung Pao andwww.cninfo.com.cn are as follows:
| No. | Announcement No. | Date | Title |
| 1 | 2020-001 | 4 January 2020 | Announcement on Approval of Stock Option Incentive Plan by State-owned Assets Supervision and Administration Commission of the State Council |
| 2 | 2020-002 | 10 January 2020 | Announcement on Resolutions of the 1st Special Meeting of the 9th Board of Directors in 2020 |
| 3 | 2020-003 | 10 January 2020 | Announcement on Resolutions of the 1st Special Meeting of the 9th Supervisory Committee in 2020 |
| 4 | 2020-004 | 10 January 2020 | Announcement on Notes and Revision of Stock Options Incentive Plan of China Merchants Port Group Co., Ltd. (Phase I) (Revised Draft) and its Abstract |
| 5 | 2020-005 | 10 January 2020 | Reminder of Convening the 1st Extraordinary General Meeting of 2020 |
| 6 | 2020-006 | 10 January 2020 | Report of the Public Call for Proxy Voting Rights of Independent Directors |
| 7 | 2020-007 | 16 January 2020 | Announcement on Voluntary Information Disclosure of Business Volume Data of December 2019 |
| 8 | 2020-008 | 20 January 2020 | Announcement on an Estimated Growth in 2019 Annual Results |
| 9 | 2020-009 | 21 January 2020 | Announcement on Notes of the Supervisory Committee on the Review and Publicity of the List of Incentive Objects under the Stock Option Plan (Phase I) |
| 10 | 2020-010 | 23 January 2020 | Announcement on the Change of the Company’s Registered Information with the Industrial and Commercial Administration |
| 11 | 2020-011 | 4 February 2020 | Announcement on Resolutions of the 1st Extraordinary General Meeting of 2020 |
| 12 | 2020-012 | 4 February 2020 | Announcement on Resolutions of the 2nd Special Meeting of the 9th Board of Directors in 2020 |
| 13 | 2020-013 | 4 February 2020 | Announcement on Resolutions of the 2nd Special Meeting of the 9th Supervisory Committee in 2020 |
| 14 | 2020-014 | 4 February 2020 | Announcement on the Grant of Stock Option (the First Grant) to Incentive Objects of the Stock Option Incentive Plan of the Company |
| 15 | 2020-015 | 4 February 2020 | Self-inspection Report on the Trading of the Company’s Shares by Insiders and Incentive Objects of the Stock Option Incentive Plan (Phase I) |
| 16 | 2020-016 | 4 February 2020 | Announcement on Resignation of Chairman of the Board and Election of New Chairman of the Board |
| 17 | 2020-017 | 15 February 2020 | Announcement on Voluntary Information Disclosure of Business Volume Data of January 2020 |
| 18 | 2020-018 | 22 February 2020 | Reminder of the Issuance of 2020 Phase I Super-short-term Financing Bonds (Epidemic Prevention Bond) |
| 19 | 2020-019 | 28 February 2020 | Announcement on Issued Result of 2020 Phase I Super-short-term Financing Bonds (Epidemic Prevention Bond) |
| 20 | 2020-020 | 14 March 2020 | Announcement on Completion of the Grant of Stock Option (the First Grant) under the Stock Option Incentive Plan (Phase I) of the Company |
| 21 | 2020-021 | 14 March 2020 | Announcement on Voluntary Information Disclosure of Business Volume Data of February 2020 |
| 22 | 2020-022 | 31 March 2020 | 2019 Annual Results Preview |
| 23 | 2020-023 | 31 March 2020 | Announcement on the Disclosure of the 2019 Annual Results by a Majority-Owned Subsidiary (Unaudited) |
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, RelatedParties, Acquirers, the Company Itself or Other Parties, Failed to Fulfill onTime during the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for January-June 2020
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H12020, as well as explanation of why:
□ Applicable √ Not applicable
V Securities Investments
Unit: RMB
| Variety of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement model | 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 item | Capital resources |
| Stock | 601018 | Ningbo Port | 592,183,095.14 | Fair value method | 1,548,914,671.20 | -127,336,798.54 | 0 | 0 | 0 | 0 | 1,447,012,390.20 | Trading financial assets | Self-owned |
| Stock | 06198 | Qingdao Port | 124,405,138.80 | Fair value method | 204,263,917.11 | -47,723,736.79 | 0 | 0 | 0 | 0 | 159,394,480.27 | Trading financial assets | Self-owned |
| Stock | 601298 | Qingdao Port | 331,404,250.30 | Fair value method | 616,000,000.00 | 34,720,000.00 | 0 | 0 | 0 | 0 | 650,720,000.00 | Trading financial assets | Self-owned |
| Stock | 600377 | Jiangsu Expressway | 1,120,000.00 | Fair value method | 11,220,000.00 | 0 | -105,000.00 | 0 | 0 | 0 | 11,080,000.00 | Other investments in equity instruments | Self-owned |
| Stock | 400032 | Petrochemical A1 | 3,500,000.00 | Fair value method | 382,200.00 | 0 | 0 | 0 | 0 | 0 | 382,200.00 | Other investments in equity instruments | Self-owned |
| Stock | 400009 | Guang Jian 1 | 27,500.00 | Fair value method | 17,000.00 | 0 | 0 | 0 | 0 | 0 | 17,000.00 | Other investments in equity instruments | Self-owned |
| Total | 1,052,639,984.24 | -- | 2,380,797,788.31 | -140,340,535.33 | -105,000.00 | 0.00 | 0.00 | 0.00 | 2,268,606,070.47 | -- | -- | ||
VI Wealth Management Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.VII Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Communications with the Investment Community such as Researches,Inquiries and Interviews during the Reporting Period
| Date | Way of communication | Type of communication party | Index to main information communicated |
| 1 January 2020 to 31 March 2020 | By phone/ written inquiry | Individual | Main inquiry: basic business condition, investments and financial condition of the Company; Materials provided: brochure of the Company; Index: SZSE EasyIR (http://irm.cninfo.com.cn/ircs/index) |
| Times of communications | 35 | ||
| Number of institutions communicated with | 0 | ||
| Number of individuals communicated with | 35 | ||
| Number of other communication parties | 0 | ||
| Tip-offs or leakages of substantial confidential information during the communications | No | ||
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 ItsRelated Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Progress Made on Internal ControlAccording to the risk control work plan in 2020 of China Merchants Port Group Co., Ltd., the tasksshall be completed during the Reporting Period are as follows:
1. Closure of Risk Control Project in 2019
(1) In accordance with the work program for the internal control implementation in 2019, theCompany has completed the finishing work of the internal control project in 2019 and formed theevaluation report for 2019. According to the company’s defect judgment standards, the reportidentifies that on the base date of evaluation, the company has no major defects in internal controlover financial reporting, and maintains effective in all major aspects in accordance with thespecification system and related regulations. There are no major defects in internal control overnon-financial reporting. The report has been approved by the board of directors and supervisors andis disclosed in accordance with regulatory requirements.
(2) The Company engaged the Deloitte Touche Tohmatsu Huayong CPAs Firm (LLP) to audit theeffectiveness of the internal control of the 2019 financial report, and issued a standard unqualifiedreport, which is disclosed in accordance with regulatory requirements.
(3) In view of the top ten risks in 2020, the Company divided the responsibilities, formulatedresponse strategies and measures for each risk, and followed up the regular prevention and controlsituation.
(4) The Company disclosed the internal control in the 2019 annual report.
2. Implementation of Risk Control in 2020
(1) Formulation of the 2020 risk control work plan.
In accordance with the overall work objective of “consolidating and deepening the construction ofrisk control infrastructure and further promoting the integration of risk control and business”, wecompiled and issued the Requirements for the Implementation of the 2020 Risk Control Work Planfor the CMPort during the reporting period, which clarifies requirements with timetable for key risk
control tasks.
(2) Update and adjustment of the list of risk control work personnel
According to the work adjustments of the staff of the CMPort and the subsidiaries included in therisk control system, the self-assessment leadership team and working group members of company’sgeneral risk management and internal control system is updated and adjusted after approval by thecompany’s general manager.
(3) Determination of the scope and the self-assessment process of risk control in 2020Based on the Company’s structural adjustment and changes, the list of 24 units included in theevaluation scope of the internal control system this year, as well as the scope of the internal controlself-assessment process of the company’s headquarters and subsidiaries are determined during thereporting period.
(4) Development of internal control self-assessment
During the Reporting Period, each unit follows the “Basic Standards for Enterprise InternalControl” and its related guidelines, and conducts sampling test evaluation in accordance with theworking procedures and methods for the internal control and risk management. No major defectswere found. The quarter brief work report was formed based on the progress.
(5) Completion of the update of risk control basic data
The Company updated the risk database and risk map according to the 2020 major risk list.
(6) Special prevention and control of risk matters
Based on the risk assessment of the impact of the COVID-19 pandemic on the business operations,we prepared the “Report on the Assessment and Response of the COVID-19 Epidemic Risk ofChina Merchants Port Group Co., Ltd.”, and the “Prevention and Control Emergency Plan for theCOVID-19 Epidemic of China Merchants Port Group Co., Ltd.” according to the epidemicprevention and control.XII Deposits in and Loans Provided by a Finance CompanyThe 2
nd Meeting of the 9
thBoard of Directors held on 23 August 2017 reviewed and approved theProposal on Signature of Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd.,
which agreed to sign the Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd.(former name, and renamed China Merchants Group Finance Co., Ltd. in August 2017). The Termof Agreement is three years.The 5
th Meeting of the 9
thBoard of Directors held on 28 March 2019 reviewed and approved theProposal on Adjustment of Deposit and Loan Limits with the China Merchants Group Finance Co.,Ltd. and Signature of the Supplemental Agreement of Financial Service Agreement andRelated-party Transaction, which agreed the Company to sign the Supplemental Agreement ofFinancial Service Agreement with China Merchants Group Finance Co., Ltd.The 4
thExtraordinary General Meeting of 2019 held on 11 December 2019 reviewed and approvedthe Proposal on Adjustment of Deposit and Loan Limits with China Merchants Group Finance Co.,Ltd. and Signature of the Supplemental Agreement (II) of Financial Service Agreement andRelated-party Transaction, which allowed the Company to sign the Supplemental Agreement (II) ofFinancial Service Agreement with China Merchants Group Finance Co., 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 | Beginning balance | Increase | Decrease | Ending balance |
| I. Deposits in China Merchants Group Finance Co., Ltd. | 89,006.52 | 108,250.20 | 117,728.85 | 79,527.87 |
| II. Loans provided by China Merchants Group Finance Co., Ltd. | 121,756.34 | 7,499.95 | 74,700.00 | 54,556.29 |
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by China Merchants Port Group Co., Ltd.
31 March 2020
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Cash and bank balances | 7,308,076,732.71 | 7,734,948,210.26 |
| Notes receivable | 13,007,640.85 | 38,192,250.02 |
| Accounts receivable | 1,655,966,181.14 | 1,356,460,129.90 |
| Accounts receivable financing | 174,011,799.01 | 260,760,537.45 |
| Prepayments | 76,914,879.35 | 55,034,019.81 |
| Other receivables | 2,053,872,959.66 | 2,129,378,252.50 |
| Including: Interest receivable | 159,794.48 | 159,794.48 |
| Dividends receivable | 390,475,572.33 | 459,352,522.24 |
| Inventories | 176,884,129.59 | 163,980,192.08 |
| Assets classified as held for sale | 188,404,228.34 | 188,404,228.34 |
| Current portion of non-current assets | 690,070,573.69 | 808,893,013.06 |
| Other current assets | 1,652,759,085.52 | 2,298,792,661.70 |
| Total current assets | 13,989,968,209.86 | 15,034,843,495.12 |
| Non-current assets: | ||
| Long-term receivables | 4,021,933,363.76 | 1,098,831,799.90 |
| Long-term equity investments | 60,979,511,391.72 | 57,916,539,383.26 |
| Investments in other equity instruments | 163,421,272.00 | 163,561,272.00 |
| Other non-current financial assets | 2,273,311,819.55 | 2,385,363,537.39 |
| Investment property | 5,714,144,967.34 | 5,760,262,674.40 |
| Fixed assets | 26,951,789,487.55 | 27,519,962,529.29 |
| Construction in progress | 6,389,654,146.67 | 6,334,141,441.88 |
| Right-of-use assets | 9,627,759,524.54 | 9,633,325,390.46 |
| Intangible assets | 18,665,192,350.23 | 19,693,715,554.10 |
| R&D expense | 40,772,506.03 | 37,399,092.28 |
| Goodwill | 7,354,133,469.70 | 8,023,659,694.81 |
| Long-term prepaid expense | 703,284,738.98 | 711,911,011.67 |
| Deferred income tax assets | 318,805,846.59 | 300,435,502.27 |
| Other non-current assets | 2,123,106,923.47 | 2,082,965,467.04 |
| Total non-current assets | 145,326,821,808.13 | 141,662,074,350.75 |
| Total assets | 159,316,790,017.99 | 156,696,917,845.87 |
| Item | 31 March 2020 | 31 December 2019 |
| Current liabilities: | ||
| Short-term borrowings | 14,990,822,099.43 | 9,439,099,793.47 |
| Notes payable | 58,294,169.94 | 76,455,949.01 |
| Accounts payable | 525,636,390.14 | 591,112,466.39 |
| Advances from customers | 28,948,573.09 | 28,826,687.37 |
| Contractual liabilities | 62,279,597.08 | 85,831,002.52 |
| Payroll payable | 480,418,003.53 | 634,718,784.64 |
| Taxes payable | 1,934,700,917.39 | 1,898,076,342.74 |
| Other payables | 2,131,200,753.02 | 2,223,754,677.96 |
| Including: Dividends payable | 89,467,727.65 | 150,286,550.81 |
| Current portion of non-current liabilities | 5,291,195,910.05 | 6,104,339,856.79 |
| Other current liabilities | 885,994,998.61 | 885,956,581.63 |
| Total current liabilities | 26,389,491,412.28 | 21,968,172,142.52 |
| Non-current liabilities: | ||
| Long-term borrowings | 6,146,216,962.44 | 6,313,735,540.33 |
| Bonds payable | 21,037,395,574.97 | 20,930,681,967.19 |
| Lease liabilities | 1,597,625,195.66 | 1,647,129,968.61 |
| Long-term payables | 1,916,042,020.81 | 1,935,245,003.21 |
| Long-term payroll payable | 468,844,362.41 | 471,482,138.63 |
| Provisions | 90,256,393.03 | 76,242,559.95 |
| Deferred income | 1,138,139,742.39 | 1,147,752,857.17 |
| Deferred income tax liabilities | 3,940,736,779.54 | 3,961,752,749.17 |
| Other non-current liabilities | 2,669,540,210.75 | 3,254,515,306.85 |
| Total non-current liabilities | 39,004,797,242.00 | 39,738,538,091.11 |
| Total liabilities | 65,394,288,654.28 | 61,706,710,233.63 |
| Owners’ equity: | ||
| Share capital | 1,922,365,124.00 | 1,922,365,124.00 |
| Capital reserves | 22,137,686,535.86 | 22,296,485,467.35 |
| Other comprehensive income | -860,301,109.55 | -355,944,565.91 |
| Special reserves | 21,245,635.19 | 12,386,734.70 |
| Surplus reserves | 630,345,307.43 | 630,345,307.43 |
| Retained earnings | 11,617,038,137.84 | 11,467,166,351.85 |
| Total equity attributable to owners of the Company as the parent | 35,468,379,630.77 | 35,972,804,419.42 |
| Non-controlling interests | 58,454,121,732.94 | 59,017,403,192.82 |
| Total owners’ equity | 93,922,501,363.71 | 94,990,207,612.24 |
| Total liabilities and owners’ equity | 159,316,790,017.99 | 156,696,917,845.87 |
The financial statements from Page 19 to Page 26 have been signed by:
Legal representative: Bai Jingtao Chief Financial Officer: Wen Ling Person-in-charge of the accounting organ: Sun Ligan
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 March 2020 | 31 December 2019 |
| Current assets: | ||
| Cash and bank balances | 1,496,043,431.08 | 690,685,211.42 |
| Prepayment | 40,000.00 | - |
| Other receivables | 834,889,155.01 | 805,534,763.27 |
| Including: Dividends receivable | 207,259,421.40 | 207,259,421.40 |
| Other current assets | 3,477,523.28 | 1,107,292,458.33 |
| Total current assets | 2,334,450,109.37 | 2,603,512,433.02 |
| Non-current assets: | ||
| Long-term receivables | 59,390,771.97 | 61,004,284.75 |
| Long-term equity investments | 30,276,219,464.71 | 30,266,376,582.23 |
| Investments in other equity instruments | 155,548,635.00 | 155,688,635.00 |
| Fixed assets | 625,230.44 | 672,842.27 |
| Construction in progress | 6,369,207.09 | 5,803,169.37 |
| Intangible assets | 54,087,099.55 | 54,692,581.18 |
| Deferred income tax assets | 928,465.21 | 928,465.21 |
| Total non-current assets | 30,553,168,873.97 | 30,545,166,560.01 |
| Total assets | 32,887,618,983.34 | 33,148,678,993.03 |
| Current liabilities: | ||
| Short-term borrowings | - | 300,378,812.50 |
| Payroll payable | 6,340,347.90 | 6,000,000.00 |
| Taxes payable | 209,227,535.48 | 209,282,889.78 |
| Other payables | 679,851,596.58 | 628,013,119.77 |
| Including: Dividends payable | 34,577,578.12 | 34,577,578.12 |
| Current portion of non-current liabilities | 36,468,000.00 | 35,832,000.00 |
| Other current liabilities | 704,164,072.40 | 715,766,708.20 |
| Total current liabilities | 1,636,051,552.36 | 1,895,273,530.25 |
| Non-current liabilities: | ||
| Deferred income tax liabilities | 35,129,858.75 | 35,164,858.75 |
| Total non-current liabilities | 35,129,858.75 | 35,164,858.75 |
| Total liabilities | 1,671,181,411.11 | 1,930,438,389.00 |
| Owners’ equity: | ||
| Share capital | 1,922,365,124.00 | 1,922,365,124.00 |
| Capital reserves | 27,579,735,800.46 | 27,576,242,527.73 |
| Other comprehensive income | 105,489,576.25 | 105,594,576.25 |
| Surplus reserves | 630,345,307.43 | 630,345,307.43 |
| Retained earnings | 978,501,764.09 | 983,693,068.62 |
| Total owners’ equity | 31,216,437,572.23 | 31,218,240,604.03 |
| Total liabilities and owners’ equity | 32,887,618,983.34 | 33,148,678,993.03 |
3. Consolidated Income Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Revenue | 2,886,025,618.74 | 2,702,894,522.99 |
| Including: Operating revenue | 2,886,025,618.74 | 2,702,894,522.99 |
| 2. Costs and expenses | 2,816,508,241.36 | 2,455,851,378.70 |
| Including: Operating costs | 1,864,663,358.55 | 1,660,826,958.58 |
| Business taxes and levies | 37,065,184.66 | 45,674,668.50 |
| Administrative expense | 347,824,422.99 | 287,367,055.02 |
| R&D expense | 29,980,546.01 | 30,052,292.96 |
| Finance expense | 536,974,729.15 | 431,930,403.64 |
| Including: Interest expense | 492,335,880.21 | 512,196,697.85 |
| Interest income | 50,524,669.01 | 59,236,488.39 |
| Add: Other income | 34,953,625.15 | 20,798,769.01 |
| Return on investment (“-” for loss) | 660,950,054.33 | 1,491,659,164.10 |
| Including: Share of profit or loss of joint ventures and associates | 640,438,994.27 | 759,492,112.86 |
| Gains on changes in fair value (“-” for losses) | -188,668,882.47 | 803,456,059.74 |
| Gains from impairment of credit (“-” for losses) | -3,725,180.29 | -1,844,684.51 |
| Gains from impairment of assets | 947,693.77 | 25,031.28 |
| Gains on disposal of assets | 13,807,774.32 | 779,531.17 |
| 3. Operating profit | 587,782,462.19 | 2,561,917,015.08 |
| Add: Non-operating income | 5,471,079.73 | 5,833,763.89 |
| Less: Non-operating expenses | 9,856,686.53 | 2,959,236.62 |
| 4. Profit before tax | 583,396,855.39 | 2,564,791,542.35 |
| Less: Income tax expenses | 170,136,660.26 | 428,680,888.19 |
| 5. Net profit | 413,260,195.13 | 2,136,110,654.16 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operation | 413,260,195.13 | 2,136,110,654.16 |
| 5.1.2 Net profit from discontinued operation | - | - |
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 149,871,785.99 | 814,944,249.12 |
| 5.2.2 Net profit attributable to non-controlling interests | 263,388,409.14 | 1,321,166,405.04 |
| 6. Other comprehensive income, net of tax | -1,507,888,654.28 | -185,440,397.65 |
| Attributable to owners of the Company as the parent | -504,356,543.64 | 147,028,952.60 |
| 6.1 Items that will not be reclassified to profit or loss | -105,000.00 | -74,999.61 |
| 6.1.1 Other comprehensive income that will not be reclassified to profit or loss under the equity method | - | - |
| Item | Q1 2020 | Q1 2019 |
| 6.1.2 Changes in the fair value of investments in other equity instruments | -105,000.00 | -74,999.61 |
| 6.2 Items that will be reclassified to profit or loss | -504,251,543.64 | 147,103,952.21 |
| 6.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | -82,409.78 | 5,312,466.40 |
| 6.2.2 Differences arising from the translation of foreign currency-denominated financial statements | -504,169,133.86 | 141,791,485.81 |
| Attributable to non-controlling interests | -1,003,532,110.64 | -332,469,350.25 |
| 7. Total comprehensive income | -1,094,628,459.15 | 1,950,670,256.51 |
| Attributable to owners of the Company as the parent | -354,484,757.65 | 961,973,201.72 |
| Attributable to non-controlling interests | -740,143,701.50 | 988,697,054.79 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.08 | 0.45 |
| 8.2 Diluted earnings per share | 0.08 | 0.45 |
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Operating revenue | - | 44,067,273.73 |
| Less: Operating costs | 566,489.91 | 34,142,026.25 |
| Business taxes and levies | - | 767,603.79 |
| Administrative expense | 19,314,560.24 | 17,391,388.67 |
| Finance expenses | 2,285,160.32 | 7,602,897.36 |
| Including: Interest expense | 6,212,087.86 | 11,494,411.09 |
| Interest income | 7,187,296.00 | 3,408,108.16 |
| Add: Other income | 329,651.83 | - |
| Return on investment | 16,645,254.11 | 12,832,064.39 |
| Including: Share of profit or loss of joint ventures and associates | 6,913,473.29 | 12,832,064.39 |
| 2. Operating profit (“-” for losses) | -5,191,304.53 | -3,004,577.95 |
| Add: Non-operating income | - | 6,680.14 |
| Less: Non-operating expense | - | 68,028.29 |
| 3. Profit before tax (“-” for losses) | -5,191,304.53 | -3,065,926.10 |
| Less: Income tax expense | - | - |
| 4. Net profit (“-” for net losses) | -5,191,304.53 | -3,065,926.10 |
| 4.1 Net profit from continuing operation (“-” for net losses) | -5,191,304.53 | -3,065,926.10 |
| 4.2 Net profit from discontinued operation | - | - |
| 5. Other comprehensive income, net of tax | -105,000.00 | 75,000.00 |
| 5.1 Items that will not be reclassified to profit or loss | -105,000.00 | 75,000.00 |
| 5.1.1 Other comprehensive income that will not be reclassified to profit or loss under the equity method | - | - |
| 5.1.2 Changes in the fair value of investments in other equity instruments | -105,000.00 | 75,000.00 |
| 5.2 Items that will be reclassified to profit or loss | - | - |
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | - | - |
| 5.2.2 Differences arising from the translation of foreign currency-denominated financial statements | - | - |
| 6. Total comprehensive income | -5,296,304.53 | -2,990,926.10 |
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,647,968,072.69 | 2,647,510,819.37 |
| Receipts of tax refunds | 686,901.98 | 23.44 |
| Cash generated from other operating activities | 198,076,000.45 | 437,792,411.01 |
| Subtotal of cash generated from operating activities | 2,846,730,975.12 | 3,085,303,253.82 |
| Payments for commodities and services | 816,838,954.37 | 736,317,677.30 |
| Cash paid to and for employees | 865,253,180.20 | 727,281,690.78 |
| Taxes paid | 156,144,055.66 | 225,198,426.64 |
| Cash used in other operating activities | 161,329,413.29 | 247,542,337.46 |
| Subtotal of cash used in operating activities | 1,999,565,603.52 | 1,936,340,132.18 |
| Net cash generated from/used in operating activities | 847,165,371.60 | 1,148,963,121.64 |
| 2. Cash flows from investing activities: | ||
| Cash receipts from disposals and recovery of investments | 1,092,096.82 | - |
| Cash receipts from investments income | 211,664,358.76 | 78,044,109.23 |
| Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 735,622.52 | 23,992,441.00 |
| Cash generated from other investing activities | 1,601,601,419.52 | 1,315,937,327.03 |
| Subtotal of cash generated from investing activities | 1,815,093,497.62 | 1,417,973,877.26 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 503,030,149.07 | 650,139,928.72 |
| Payments for investments | 2,746,841,398.03 | 415,845,100.00 |
| Other cash payments relating to investing activities | 3,792,979,774.69 | 255,659,104.33 |
| Subtotal of cash used in investing activities | 7,042,851,321.79 | 1,321,644,133.05 |
| Net cash generated from/used in investing activities | -5,227,757,824.17 | 96,329,744.21 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | - | 460,518,459.96 |
| Including: Capital contributions by non-controlling interests to subsidiaries | - | 460,518,459.96 |
| Borrowings obtained | 8,281,485,148.10 | 5,720,896,211.18 |
| Subtotal of cash generated from financing activities | 8,281,485,148.10 | 6,181,414,671.14 |
| Repayments of borrowings | 3,167,336,858.98 | 6,241,679,082.60 |
| Payments for interest and dividends | 647,207,743.80 | 575,131,285.06 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 58,380,000.00 | 24,360,440.28 |
| Cash used in other financing activities | 447,602,677.41 | 114,109,500.00 |
| Subtotal of cash used in financing activities | 4,262,147,280.19 | 6,930,919,867.66 |
| Net cash generated from/used in financing activities | 4,019,337,867.91 | -749,505,196.52 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -68,824,378.45 | -39,571,072.82 |
| 5. Net increase in cash and cash equivalents | -430,078,963.11 | 456,216,596.51 |
| Add: Cash and cash equivalents, beginning of the period | 7,714,157,995.87 | 5,373,281,504.75 |
| 6. Cash and cash equivalents, end of the period | 7,284,079,032.76 | 5,829,498,101.26 |
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | Q1 2020 | Q1 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | - | 51,258,278.89 |
| Cash generated from other operating activities | 67,957,173.78 | 236,323,914.96 |
| Subtotal of cash generated from operating activities | 67,957,173.78 | 287,582,193.85 |
| Payments for commodities and services | - | 15,108,762.13 |
| Cash paid to and for employees | 14,948,227.54 | 40,097,735.78 |
| Taxes paid | - | 18,735,502.45 |
| Cash used in other operating activities | 4,119,679.42 | 183,200,592.57 |
| Subtotal of cash used in operating activities | 19,067,906.96 | 257,142,592.93 |
| Net cash generated from/used in operating activities | 48,889,266.82 | 30,439,600.92 |
| 2. Cash flows from investing activities: | ||
| Cash receipts from investments income | - | 43,605,689.02 |
| Cash generated from other investing activities | 1,120,000,000.00 | 228,867,355.24 |
| Subtotal of cash generated from investing activities | 1,120,000,000.00 | 272,473,044.26 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 600,000.00 | 1,715,483.68 |
| Payments for investments | - | 375,334,390.00 |
| Other cash payments relating to investing activities | 45,918,914.21 | 185,800,000.00 |
| Subtotal of cash used in investing activities | 46,518,914.21 | 562,849,873.68 |
| Net cash generated from/used in investing activities | 1,073,481,085.79 | -290,376,829.42 |
| 3. Cash flows from financing activities: | ||
| Borrowings obtained | 699,482,800.00 | 280,000,000.00 |
| Subtotal of cash generated from financing activities | 699,482,800.00 | 280,000,000.00 |
| Repayments of borrowings | 1,000,000,000.00 | 250,000,000.00 |
| Payments for interest and dividends | 16,524,793.03 | 11,647,054.79 |
| Cash used in other financing activities | - | 1,413,599.00 |
| Subtotal of cash used in financing activities | 1,016,524,793.03 | 263,060,653.79 |
| Net cash generated from/used in financing activities | -317,041,993.03 | 16,939,346.21 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 29,860.08 | -3,957,304.53 |
| 5. Net increase in cash and cash equivalents | 805,358,219.66 | -246,955,186.82 |
| Add: Cash and cash equivalents, beginning of the period | 690,685,211.42 | 389,841,854.93 |
| 6. Cash and cash equivalents, end of the period | 1,496,043,431.08 | 142,886,668.11 |
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Initial Execution Year ofany New Standards Governing Revenue or Leases from 2020
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the Initial Execution ofany New Standards Governing Revenue or Leases from 2020
□ Applicable √ Not applicable
III Independent Auditor’s ReportIs this report audited?
□ Yes √ No
This report is not audited.
The Board of DirectorsChina Merchants Port Group Co., Ltd.30 April 2020