Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2021-098
CHINA MERCHANTS PORT GROUP CO., LTD.THE REPORT FOR THE THIRD QUARTER OF 2021
Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors andsenior management of the Company hereby guarantee the factuality, accuracy and completeness of the contents ofthis Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or materialomissions therein.
2. Wang Xiufeng, the Company’s legal representative, Tu Xiaoping, the Company’s Chief Financial Officer, andSun Ligan, the person-in-charge of the accounting organ hereby guarantee that the financial statements carried inthis Report are factual, accurate and complete.
3. Indicate by tick mark whether the financial statements herein have been audited by an independent auditor.
□Yes √ No
4. Securities Times, Shanghai Securities News, Ta Kung Pao (HK) and www.cninfo.com.cn have been designatedby the Company for information disclosure. And all information about the Company shall be subject to what’sdisclosed on the aforesaid media.This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.I Key Financial Information(I) Key Accounting Data and Financial Indicators
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason:
Business combination under common control.
Q3 2021 | Q3 2020 | YoY change (%) | Q1-Q3 2021 | Q1-Q3 2020 | YoY change (%) | |||
Original | Restated | Restated | Original | Restated | Restated |
Operatingrevenue (RMB)
Operating revenue (RMB) | 4,047,333,525.94 | 3,239,264,119.14 | 3,284,720,164.24 | 23.22% | 11,387,276,388.20 | 9,161,761,277.62 | 9,247,217,881.20 | 23.14% |
Net profit attributable to the listed company’s shareholders (RMB) | 756,770,050.94 | 642,339,845.93 | 647,576,926.18 | 16.86% | 2,433,805,397.11 | 1,275,138,431.76 | 1,279,869,012.34 | 90.16% |
Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 588,153,132.19 | 605,513,230.59 | 610,750,310.84 | -3.70% | 2,232,849,193.16 | 1,150,105,145.13 | 1,154,835,725.71 | 93.35% |
Net cash generated from/used in operating activities (RMB) | —— | —— | —— | —— | 4,759,841,014.84 | 3,736,814,020.41 | 3,745,235,630.79 | 27.09% |
Basic earnings per share (RMB/share) | 0.394 | 0.334 | 0.337 | 16.91% | 1.266 | 0.663 | 0.666 | 90.09% |
Diluted earnings per share (RMB/share) | 0.394 | 0.334 | 0.337 | 16.91% | 1.266 | 0.663 | 0.666 | 90.09% |
Weighted average return on equity (%) | 1.96% | 1.81% | 1.94% | 0.02% | 6.38% | 3.54% | 3.52% | 2.86% |
30 September 2021 | 31 December 2020 | Change (%) | ||||||
Original | Restated | Restated | ||||||
Total assets (RMB) | 170,526,198,246.65 | 168,543,611,777.21 | 168,728,326,345.77 | 1.07% | ||||
Equity attributable to the listed company’s | 39,081,793,750.60 | 37,117,806,052.18 | 37,165,277,744.78 | 5.16% |
shareholders(RMB)
The total share capital at the end of the last trading session before the disclosure of this Report:
shareholders(RMB)
Total share capital at the end of the last tradingsession before the disclosure of this Report(share)
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) | 1.2660 |
(II) Exceptional Gains and Losses
Unit: RMB
Item | Q3 2021 | Q1-Q3 2021 | Note |
Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -2,106,370.19 | 2,624,903.57 | - |
Government subsidies charged to current profit or loss (exclusive of government subsidies continually given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards) | 22,622,058.93 | 314,955,081.46 | - |
Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 56,890,943.76 | 175,712,943.64 | - |
Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net | -3,255,790.50 | - | |
Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 710,254,464.12 | 221,721,597.67 | - |
Reversed portions of impairment allowances for receivables which are tested individually for impairment | 1,256,056.54 | 1,350,155.71 | - |
Custodian fees earned from entrusted operation | 471,698.11 | - | |
Non-operating income and expense other than the | 2,387,311.67 | 21,394,350.94 | - |
above
above | |||
Less: Income tax effects | 255,938,893.38 | 181,241,337.40 | - |
Non-controlling interests effects (net of tax) | 366,748,652.70 | 352,777,399.25 | - |
Total | 168,616,918.75 | 200,956,203.95 | -- |
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases.The Company had no exceptional gains or losses during Q1-Q3 2021.(III) Changes in Key Financial Statement Line Items and Their Explanation
Unit: RMB
Balance sheet items | 30 September 2021 | 31 December 2020 (restated) | Change (%) | Explanation of changes |
Held-for-trading financial assets | 4,014,175,763.34 | 850,165,448.59 | 372.16% | Increase in the net amount of structured deposits |
Accounts receivable | 2,042,295,859.17 | 1,393,349,417.02 | 46.57% | Increase in revenue |
Other current assets | 981,302,467.56 | 434,074,085.16 | 126.07% | Increase in the net amount of structured deposits |
Construction in progress | 3,477,770,660.71 | 5,381,430,606.18 | -35.37% | Transfer of the Haixing intelligent harbor project to fixed assets |
Short-term borrowings | 6,265,806,927.57 | 10,483,775,548.93 | -40.23% | Repayment of short-term borrowings upon maturity |
Non-current liabilities due within one year | 8,375,417,937.37 | 3,564,587,701.07 | 134.96% | Increase in corporate bonds due within one year |
Other current liabilities | 3,170,996,675.89 | 2,383,668,985.94 | 33.03% | New issue of super short-term commercial papers |
Income statement items | Q1-Q3 2021 | Q1-Q3 2020 (restated) | Change (%) | Explanation of changes |
Other income | 328,343,162.91 | 86,867,728.76 | 277.98% | Receipt of government subsidies for business development |
Investment income | 4,736,067,742.42 | 2,514,918,383.87 | 88.32% | Increase in the share of profits of associates and joint ventures |
Gains from changes in fair | 221,721,597.68 | -488,315,935.84 | 145.41% | Adjustment to the calculation of |
value
value | concession royalties payable by TCP Participa??es S.A. | |||
Gains on disposal of assets | 9,352,429.28 | 693,724,248.54 | -98.65% |
Income tax expenses | 1,213,675,997.89 | 612,234,821.19 | 98.24% | Increase in operating income |
Cash flow statement items | Q1-Q3 2021 | Q1-Q3 2020 (restated) | Change (%) | Explanation of changes |
Cash receipts from disposals and recovery of investments | 8,880,000,000.00 | 5,802,647,276.82 | 53.03% | Maturity of structured deposits |
Cash receipts from investments income | 2,694,402,313.30 | 1,375,104,379.13 | 95.94% | Cash dividends received |
Other cash payments relating to investing activities | 16,434,653.35 | 3,011,289,010.12 | -99.45% | Payment of loan to Terminal Link S.A.S. in the same period of last year, with no comparable payment in the current period |
Cash receipts from borrowings | 15,543,148,136.92 | 23,726,548,723.25 | -34.49% | Decrease in short-term borrowings |
Other cash payments relating to financing activities | 13,196,969.01 | 757,948,189.24 | -98.26% | Payment for the acquisition of a 10% interest in TCP Participa??es S.A. in the same period of last year, with no comparable payment in the current period |
II Shareholder Information(I) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed VotingRights as well as Holdings of Top 10 Shareholders
Unit: share
Number of ordinary shareholders | 30,134 (18,815 A-shareholders, 11,319 B-shareholders) | 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 GANGTONGDEVELOPMENT (SHENZHEN)CO., LTD.
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) | Funds, wealth management products, etc. | 3.37% | 64,850,182 | 0 | 0 | |
CHINA-AFRICA DEVELOPMENT FUND | State-owned legal person | 3.33% | 64,102,564 | 0 | 0 | |
BROADFORD GLOBAL LIMITED | State-owned legal person | 2.88% | 55,314,208 | 0 | 0 | |
HONG KONG SECURITIES CLEARING COMPANY LTD. | Foreign legal person | 0.18% | 3,425,583 | 0 | Unknown | |
ZHU HUI | Domestic natural person | 0.15% | 2,958,003 | 0 | Unknown | |
CHINA MERCHANTS SECURITIES (HK) CO., LTD. | State-owned legal person | 0.13% | 2,573,555 | 0 | Unknown | |
ARROWSTREET EMERGING MARKET ALPHA EXTENSION TRUST FUND | Foreign legal person | 0.12% | 2,247,991 | 0 | Unknown | |
JIN XING | Domestic natural person | 0.11% | 2,166,700 | 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 | |||
SHENZHEN INFRASTRUCTURE INVESTMENT FUND-SHENZHEN INFRASTRUCTURE INVESTMENT FUND PARTNERSHIP (LIMITED PARTNERSHIP) | 64,850,182 | RMB ordinary share | 64,850,182 | |||
CHINA-AFRICA DEVELOPMENT FUND | 64,102,564 | RMB ordinary share | 64,102,564 | |||
BROADFORD GLOBAL LIMITED | 55,314,208 | Domestically listed foreign | 55,314,208 |
share
share | |||
HONG KONG SECURITIES CLEARING COMPANY LTD. | 3,425,583 | RMB ordinary share | 3,425,583 |
ZHU HUI | 2,958,003 | RMB ordinary share | 2,958,003 |
CHINA MERCHANTS SECURITIES (HK) CO., LTD. | 2,573,555 | Domestically listed foreign share | 2,573,555 |
ARROWSTREET EMERGING MARKET ALPHA EXTENSION TRUST FUND | 2,247,991 | Domestically listed foreign share | 2,247,991 |
JIN XING | 2,166,700 | Domestically listed foreign share | 2,166,700 |
MAI SHUQING | 2,129,247 | RMB ordinary share | 2,129,247 |
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 unrestricted ordinaryshareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.(II) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events(I) Private Placement of A-shares and Subscription of Shares in Ningbo PortOn 13 July 2021, the Proposal on the Plan for Private Placement of A-shares, the Proposal on Subscription by theCompany as a Strategic Investor of Shares in a Private Placement of Ningbo Zhoushan Port Company Limited &Related-party Transaction, and other relevant proposals were approved unanimously at the 6
thExtraordinaryMeeting of the Company’s 10
th
Board of Directors in 2021, and the 3
rdExtraordinary Meeting of the Company’s
th
Supervisory Committee in 2021, respectively. As such, the Company was agreed to introduce ZhejiangProvincial Seaport Investment & Operation Group Co. Ltd. (Seaport Group) as a strategic investor by carrying outa private placement of 577,000,000 A-shares (or 30% of the Company’s total share capital before the issue) toSeaport Group to raise RMB10.917 billion. Meanwhile, the Company was agreed to subscribe for in cash, as astrategic investor, 3,646,971,029 A-shares in the 2021 private placement of Ningbo Zhoushan Port CompanyLimited (Ningbo Port). For further information, see Announcement No. 2021-053 on the Resolutions of the 6thExtraordinary Meeting of the 10th Board of Directors in 2021, Announcement No. 2021-054 on the Resolutions ofthe 3rd Extraordinary Meeting of the 10th Supervisory Committee in 2021, Announcement No. 2021-057 onSubscription by the Company as a Strategic Investor of Shares in a Private Placement of Ningbo Zhoushan PortCompany Limited & Related-party Transaction, and other relevant announcements disclosed by the Companydated 14 July 2021.On 26 August 2021, the Company disclosed that it had received the Reply on the Private Placement of A-shares ofChina Merchants Port Group Co., Ltd. (Guo Zi Chan Quan [2021] No. 457) issued by the State-owned AssetsSupervision and Administration Commission of the State Council, which in principle consented to the plan of theCompany for a private placement of no more than 576,709,537 A-shares to Zhejiang Provincial SeaportInvestment & Operation Group Co. Ltd. (SS). For further information, see Announcement No. 2021-070 onApproval of Private Placement of A-shares by SASAC of the State Council disclosed by the Company dated 27August 2021.On 27 September 2021, the proposals in relation to the private placement of A-shares were approved at the 1
st
Extraordinary General Meeting of the Company in 2021. For further information, see Announcement No.2021-087 on Announcement on Resolutions of the 1st Extraordinary General Meeting of 2021 disclosed by theCompany dated 28 September 2021.(II) Progress, Influence and Solutions in respect of Significant Events
1. Index to Information Disclosure
In the Reporting Period, the Company disclosed the following significant events:
Announcement No.
Announcement No. | Date | Title |
2021-051 | 1 July 2021 | Announcement on the Resolutions of the 5th Extraordinary Meeting of the 10th Board of Directors in 2021 |
2021-052 | 1 July 2021 | Announcement on 2021 Interest Payment for 2020 Public Offering of Corporate Bonds (Tranche 1) to Qualified Investors |
2021-053 | 14 July 2021 | Announcement on the Resolutions of the 6th Extraordinary Meeting of the 10th Board of Directors in 2021 |
2021-054 | 14 July 2021 | Announcement on the Resolutions of the 3rd Extraordinary Meeting of the 10th Supervisory Committee in 2021 |
2021-055 | 14 July 2021 | Announcement on Signing Conditionally Effective Share Subscription Agreement with Certain Entities & Related-party Transaction |
2021-056 | 14 July 2021 | Announcement on Signing Strategic Cooperation Framework Agreement with Zhejiang Provincial Seaport Investment & Operation Group Co. Ltd. |
2021-057 | 14 July 2021 | Announcement on Subscription by the Company as a Strategic Investor of Shares in a Private Placement of Ningbo Zhoushan Port Company Limited & Related-party Transaction |
2021-058 | 14 July 2021 | Announcement on No Punishments or Other Regulatory Measures from the Securities Regulator or the Stock Exchange in the Past 5 Years |
2021-059 | 14 July 2021 | Reminder on Changes in Shareholders’ Equity in a Private Placement |
2021-060 | 15 July 2021 | Announcement on Estimated Increase in 2021 Interim Earnings |
2021-061 | 15 July 2021 | Announcement on Voluntary Disclosure of the Business Volume Data of June 2021 |
2021-062 | 15 July 2021 | Announcement on Payout of 2020 Final Dividends |
2021-063 | 17 July 2021 | Reminder on the 4th Issue of SCP in 2021 |
2021-064 | 21 July 2021 | Announcement on Results of the 4th Issue of SCP in 2021 |
2021-065 | 7 August 2021 | Announcement on Resignation of Deputy General Manager Mr. Zheng Shaoping |
2021-066 | 14 August 2021 | Announcement on Voluntary Disclosure of the Business Volume Data of July 2021 |
2021-067 | 14 August 2021 | Announcement on Resignation of Chairman of the Supervisory Committee |
2021-068 | 24 August 2021 | Announcement on the Resolutions of the 7th Extraordinary Meeting of the 10th Board of Directors in 2021 |
2021-069
2021-069 | 24 August 2021 | Announcement on Resignation of Director and Senior Management & Re-election of Director and Appointment of CEO |
2021-070 | 28 August 2021 | Announcement on Approval of Private Placement of A-shares by SASAC of the State Council |
2021-071 | 31 August 2021 | Announcement on the Resolutions of the 4th Meeting of the 10th Board of Directors |
2021-072 | 31 August 2021 | Announcement on the Resolutions of the 4th Meeting of the 10th Supervisory Committee |
2021-073 | 31 August 2021 | Interim Report 2021 (Summary) (Chinese Version) Interim Report 2021 (Summary) (English Version) |
2021-074 | 31 August 2021 | Special Report of the Deposit and Use of Raised Funds for H1 2021 |
2021-075 | 31 August 2021 | Announcement on Incorporation of HK Wholly-owned Subsidiary and Adjustment to Ownership Structure of the Subsidiary |
2021-076 | 31 August 2021 | Announcement on Adjustments to the Deposit and Loan Limits with China Merchants Bank & Related-party Transaction |
2021-077 | 31 August 2021 | Announcement on Release of 2021 Interim Results by Majority-owned Subsidiary |
2021-078 | 31 August 2021 | Announcement on Online Investor Meeting on 2021 Interim Results |
2021-079 | 9 September 2021 | Announcement on the Resolutions of the 8th Extraordinary Meeting of the 10th Board of Directors in 2021 |
2021-080 | 9 September 2021 | Announcement on the Resolutions of the 4th Extraordinary Meeting of the 10th Supervisory Committee in 2021 |
2021-081 | 9 September 2021 | Announcement on Majority-owned Subsidiary Signing Supplementary Agreement to Lease Agreement Regarding Concessions |
2021-082 | 9 September 2021 | Notice of the 1st Extraordinary General Meeting of 2021 |
2021-083 | 14 September 2021 | Announcement on Alteration of Registered Information with Industry and Commerce Administration 关于完成工商变更登记的公告 |
2021-084 | 15 September 2021 | Announcement on Voluntary Disclosure of the Business Volume Data of August 2021 |
2021-085 | 23 September 2021 | Announcement on Redemption of the 2nd Issue of SCP in 2021 upon Maturity |
2021-086 | 25 September 2021 | Reminder on the 5th Issue of SCP in 2021 |
2021-087
2021-087 | 28 September 2021 | Announcement on Resolutions of the 1st Extraordinary General Meeting of 2021 |
2021-088 | 28 September 2021 | Announcement on the Resolutions of the 9th Extraordinary Meeting of the 10th Board of Directors in 2021 |
2021-089 | 29 September 2021 | Announcement on Results of the 5th Issue of SCP in 2021 |
2. Progress of any Share Repurchase
□ Applicable √ Not applicable
3. Progress of any Reduction of the Repurchased Shares through Centralized Bidding
□ Applicable √ Not applicable
(III) Financial Investments
1. Securities Investments
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 | Funding source |
Stock | 601298 | Qingdao Port | 331,404,250.30 | Fair value method | 720,160,000.00 | -69,440,000.00 | - | - | - | 29,366,400.00 | 650,720,000.00 | Held-for-trading financial assets | Self-funded |
Stock | 06198 | Qingdao Port | 124,405,138.80 | Fair value method | 166,225,139.77 | -24,736,441.54 | - | - | - | 10,812,917.01 | 139,242,228.69 | Held-for-trading financial assets | Self-funded |
Stock | 600377 | Jiangsu Expressway | 1,120,000.00 | Fair value method | 10,786,800.00 | - | -367,500.00 | - | - | 460,000.00 | 10,296,800.00 | Investment in other equity instruments | Self-funded |
Stock | 400032 | Petrochemical A1 | 3,500,000.00 | Fair value method | 382,200.00 | - | - | - | - | - | 382,200.00 | Investment in other | Self-funded |
equityinstruments
equity instruments | |||||||||||||
Stock | 600179 | Antong Holdings | 391,956.73 | Fair value method | 165,448.59 | 10,311.74 | - | - | - | - | 175,763.34 | Held-for-trading financial assets | Self-funded |
Stock | 400009 | Guang Jian 1 | 27,500.00 | Fair value method | 17,000.00 | - | - | - | - | - | 17,000.00 | Investment in other equity instruments | Self-funded |
Total | 460,848,845.83 | -- | 897,736,588.36 | -94,166,129.80 | -367,500.00 | - | - | 40,639,317.01 | 800,833,992.03 | -- | -- |
2. Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(IV) Progress of Projects Financed with Raised Funds
1. Funds Raised through Private Placement of Shares
Pursuant to the Reply of China Securities Regulatory Commission on the Approval of Shenzhen Chiwan WharfHoldings Limited Offering Shares to China Merchants Investment Development Company Limited for AssetAcquisition and Raising the Matching Funds (ZJXK [2018] No. 1750) dated 31 October 2018, the Companyissued, in a private placement, a total of 128,952,746 shares of RMB-denominated ordinary shares (A-shares) totwo entities including China-Africa Development Fund at RMB17.16/share, raising a total ofRMB2,212,829,121.36 (with the net amount after deducting issuance costs being RMB2,185,997,340.15).Following the arrival of the aforesaid funds, BDO China Shu Lun Pan Certified Public Accountants LLP issued aCapital Verification Report (XKSBZ [2019] No. ZI10673).
As of 30 September 2021, a total of RMB9,126,206,468.29 of raised funds have been used, including: (1)RMB582,722,414.48 as the replacement for the self-financings that had been in advance input into project to befinanced by raised funds; (2) RMB986,652,272.60 (after the arrival of the raised funds) for the Haixing HarborRenovation Project (Phase II), with RMB324,533,139.29 in 2019, RMB424,734,590.46 in 2020, andRMB237,384,542.85 in Q1-Q3 2021; (3) RMB26,831,781.21 as issuance costs; (4) RMB6,630,000,000.00 wasused for purchasing structured deposits, including RMB1,200,000,000.00 in 2019, RMB2,650,000,000.00 in 2020,and RMB2,780,000,000.00 in Q1-Q3 2021; and (5) RMB900,000,000.00 was used for purchasing seven-daynotice deposits, including RMB900,000,000.00 in Q1-Q3 2021.As of 30 September 2021, the interest income in the account of raised funds minus service charges stood atRMB2,107,035.43 (2019: RMB795,775.14; 2020: RMB1,142,652.22; Q1-Q3 2021: RMB168,608.07). Theamount of structured deposits redeemed was RMB6,130,000,000.00 (2019: RMB100,000,000.00; 2020:
RMB2,950,000,000.00; Q1-Q3 2021: RMB3,080,000,000.00). The amount of income from structured depositswas RMB36,243,726.02 (2019: RMB302,465.75; 2020: RMB28,538,767.13; Q1-Q3 2021: RMB7,402,493.14).The amount of seven-day notice deposits redeemed was RMB759,000,000.00 (Q1-Q3 2021:
RMB759,000,000.00). The amount of income from seven-day notice deposits was RMB3,270,375.00.As of 30 September 2021, the balance in the account of raised funds amounted to RMB658,243,789.52. The useand balance of the raised funds are as follows:
Unit: RMB
Item
Item | Amount |
Opening balance of raised funds (31 December 2020) | 884,786,856.16 |
Less: raised funds that were directly used for project to be financed by raised funds in Q1-Q3 2021 | 237,384,542.85 |
Add: Income from structured deposits in Q1-Q3 2021 | 7,402,493.14 |
Income from seven-day notice deposits in Q1-Q3 2021 | 3,270,375.00 |
Net interest income from raised funds in Q1-Q3 2021 | 168,608.07 |
Closing balance of raised funds (30 September 2021) | 658,243,789.52 |
2. Funds Raised through Corporate Bonds
On 7 July 2020, the Company issued RMB 2 billion of corporate bonds at the Shenzhen Stock Exchange, with acoupon rate of 3.36% and a term of three years. The funds raised would be used to acquire 1,606,855,919 ordinaryshares in Zhanjiang Port (Group) Co., Ltd. (accounting for 27.3544% of Zhanjiang Port’s total issued shares) fromthe issuer’s wholly-owned subsidiary Chiwan Wharf Holdings (Hong Kong) Limited. As of 30 September 2021,the handover of the said equity interests has been completed. The first interest payment for the said corporatebonds was completed on 8 July 2021.(V) Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
Date
Date | Place | Way of communication | Type of communication party | Communication party | Index to basic information of researches |
31 August 2021 | China Merchants Port Building | By phone | Institution | Changjiang Securities, Essence Securities, Ping An Asset Management, Haitong Securities, Kymco Capital, Minsen Investment, Golden Eagle Fund, Hotland Innovation Asset Management, Greenwoods Asset, Zhaofeng Investment, Congrong Investment, Foresight Investment, Southern Raytai Fund, Taiping 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) |
1 July 2021 to 30 September 2021 | China Merchants Port Building | By phone, or written inquiry (the EasyIR platform of SZSE or email) | Individual | - | |
Times of communications | 35 | ||||
Number of institutions communicated with | 14 | ||||
Number of individuals communicated with | 34 | ||||
Number of other communication parties | 0 | ||||
Tip-offs or leakages of substantial confidential information during the communications | No |
(VI) Progress Made on Internal ControlThe focuses of risk control for Q3 2021 are as follows:
1. Establishment of internal control system
One unit was newly included as one of the ninth batch of units in 2021. As of 30 September 2021, a total of 25units have been included in the risk control system to evaluate, covering all enterprises controlled by the Company.Based on the personnel changes of the Company and its subsidiaries, the list of members of the leading group andworking group for risk management and internal control self-assessment was adjusted.
2. Further Improvement in coverage of internal control evaluation processIn 2021, 22 subsidiaries included in the Company’s internal control system to self-evaluate as the first to eighthbatch of units have completed the sorting out of all 12 business processes so as to make the internal controlevaluation cover the core business of the Company; Ningbo Daxie China Merchants International ContainerTerminal Co., Ltd., newly added as one of the ninth batch of subordinate units, is sorting out 7 core processes(production management, sales and marketing, outsourcing management, contract management, procurementmanagement, capital management and project management) and preparing the process manual to make theinternal control process compliant.
3. Carrying out the establishment and evaluation of internal control system on a regular basisAs of 30 September 2021, all units have renewed their internal control self-evaluation working papers inaccordance with the annual internal control evaluation plan and changes in business process and carried out theinternal control self-evaluation work on a quarterly basis. The internal control working group of the Company hasreviewed the internal control working papers submitted by each unit and notified the problems existing in theself-evaluation of each unit.
4. Completing the internal control as planned
The Company has prepared the Report of China Merchants Port Group Co., Ltd. on Internal Control SystemEvaluation of 2020. At the same time, it has cooperated with the external internal control audit project team tocomplete the internal control audit and obtained the internal control audit report on time. The Company workedout the “Three-year Coverage” work plan for supervising and inspecting internal control systems for all
subsidiaries incorporated into the Company’s internal control system and intended to conduct the supervision andinspection of eight units of them in 2021. As of 30 September 2021, the supervision and inspection on the internalcontrol system of six subsidiaries have been completed with the internal control evaluation defect lists.(VII) Deposits in and Loans Provided by a Finance CompanyThe Proposal on Signing Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. was reviewed andapproved on the 2
nd Meeting of the 9
thBoard of Directors held by the Company on 23 August 2017, in which, theCompany was agreed to signed the Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd.(renamed China Merchants Group Finance Co., Ltd. from August 2017) with the period of three years.The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement to FinancialService Agreement with China Merchants Group Finance Co., Ltd and the Related-party Transactions wasreviewed and approved on the 5
th Meeting of the 9
th
Board of Directors held by the Company on 28 March 2019,in which, the Company was agreed to signed Supplementary Agreement to Financial Service Agreement withChina Merchants Group Finance Co., Ltd.The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement II to FinancialService Agreement with China Merchants Group Finance Co., Ltd and the Related-party Transactions wasreviewed and approved on the 4
thExtraordinary General Meeting of 2019 held by the Company on 11 December2019, in which, the Company was agreed to signed Supplementary Agreement II to Financial Service Agreementwith China Merchants Group Finance Co., Ltd.At the end of the Reporting Period, deposits in and loans provided by China Merchants Group Finance Co., Ltd.were as follows:
Unit: RMB’0,000
Item
Item | Beginning balance | Q1-Q3 Increase | Q1-Q3 Decrease | Ending balance |
I. Deposits in China Merchants Group Finance Co., Ltd. | 156,892.42 | 781,893.88 | 847,974.27 | 90,812.03 |
II. Loans provided by China Merchants Group Finance Co., Ltd. | 312,156.42 | 154,411.13 | 368,916.34 | 97,651.21 |
IV Financial Statements(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by China Merchants Port Group Co., Ltd.
30 September 2021
Unit: RMB
Item
Item | 30 September 2021 | 31 December 2020 (restated) |
Current assets: | ||
Cash and bank balances | 9,422,998,745.09 | 11,918,423,758.71 |
Settlement reserve | ||
Interbank loans granted | ||
Held-for-trading financial assets | 4,014,175,763.34 | 850,165,448.59 |
Derivative financial assets | ||
Notes receivable | 22,898,302.97 | 5,391,994.84 |
Accounts receivable | 2,042,295,859.17 | 1,393,349,417.02 |
Receivables financing | 273,181,118.99 | 217,449,966.41 |
Prepayments | 100,688,610.61 | 51,217,870.43 |
Premiums receivable | ||
Reinsurance receivables | ||
Receivable reinsurance contract reserve | ||
Other receivables | 3,621,063,795.90 | 3,561,292,313.98 |
Including: Interest receivable | ||
Dividend receivable | 372,525,685.67 | 258,137,208.69 |
Financial assets purchased under resale agreements | ||
Inventories | 225,395,762.09 | 214,823,976.30 |
Contract assets | ||
Assets held for sale | 337,442,757.28 | 337,442,757.28 |
Non-current assets due within one year | 47,819,561.11 | 67,692,473.44 |
Other current assets | 981,302,467.56 | 434,074,085.16 |
Total current assets | 21,089,262,744.11 | 19,051,324,062.16 |
Non-current assets: | ||
Loans and advances to customers | ||
Investments in debt obligations | ||
Investments in other debt obligations | ||
Long-term receivables | 3,526,219,158.58 | 3,887,949,993.10 |
Long-term equity investments | 68,054,780,857.48 | 66,242,411,222.90 |
Investments in other equity instruments | 180,977,057.74 | 181,467,057.74 |
Other non-current financial assets | 814,384,541.48 | 910,807,452.56 |
Investment properties
Investment properties | 5,417,725,647.58 | 5,558,755,275.21 |
Fixed assets | 30,938,571,995.47 | 29,479,755,159.21 |
Construction in progress | 3,477,770,660.71 | 5,381,430,606.18 |
Productive living assets | ||
Oil and gas assets | ||
Right-of-use assets | 8,791,549,452.75 | 9,087,741,812.94 |
Intangible assets | 18,053,369,986.13 | 18,772,180,542.10 |
Development expenditure | 88,895,127.03 | 64,237,735.23 |
Goodwill | 6,587,100,200.23 | 6,675,939,930.13 |
Long-term prepaid expenses | 891,158,072.07 | 874,999,735.91 |
Deferred tax assets | 385,940,282.32 | 420,857,076.76 |
Other non-current assets | 2,228,492,462.97 | 2,138,468,683.64 |
Total non-current assets | 149,436,935,502.54 | 149,677,002,283.61 |
Total assets | 170,526,198,246.65 | 168,728,326,345.77 |
Current liabilities: | ||
Short-term borrowings | 6,265,806,927.57 | 10,483,775,548.93 |
Borrowings from the central bank | ||
Interbank loans obtained | ||
Held-for-trading financial liabilities | ||
Derivative financial liabilities | ||
Notes payable | 4,272,355.53 | 7,081,772.32 |
Accounts payable | 696,026,194.96 | 607,972,699.59 |
Receipts in advance | 9,649,369.15 | 39,510,127.90 |
Contract liabilities | 222,220,344.65 | 157,442,109.67 |
Financial assets sold under repurchase agreements | ||
Customer deposits and interbank deposits | ||
Payables for acting trading of securities | ||
Payables for underwriting of securities | ||
Employee benefits payable | 798,093,830.69 | 726,897,125.42 |
Taxes payable | 2,586,853,498.95 | 2,370,258,689.99 |
Other payables | 3,224,425,462.87 | 2,481,217,568.40 |
Including: Interest payable | ||
Dividends payable | 1,052,581,499.32 | 70,388,849.49 |
Handling charges and commissions payable | ||
Reinsurance payables | ||
Liabilities directly associated with assets held for sale | ||
Non-current liabilities due within one year | 8,375,417,937.37 | 3,564,587,701.07 |
Other current liabilities | 3,170,996,675.89 | 2,383,668,985.94 |
Total current liabilities | 25,353,762,597.63 | 22,822,412,329.23 |
Non-current liabilities:
Non-current liabilities: | ||
Insurance contract reserve | ||
Long-term borrowings | 7,381,989,561.96 | 7,406,322,693.81 |
Bonds payable | 17,295,108,554.84 | 21,090,545,845.56 |
Including: Preferred shares | ||
Perpetual bonds | ||
Lease liabilities | 1,160,833,898.37 | 1,327,850,984.08 |
Long-term payables | 1,208,843,008.56 | 1,228,461,573.69 |
Long-term employee benefits payable | 483,414,438.19 | 507,714,699.46 |
Provisions | 167,434,030.76 | 100,406,745.66 |
Deferred income | 1,086,564,159.69 | 1,113,180,823.99 |
Deferred tax liabilities | 4,465,995,190.02 | 4,347,553,142.73 |
Other non-current liabilities | 2,494,308,561.24 | 2,982,220,894.03 |
Total non-current liabilities | 35,744,491,403.63 | 40,104,257,403.01 |
Total liabilities | 61,098,254,001.26 | 62,926,669,732.24 |
Shareholders' equity: | ||
Share capital | 1,922,365,124.00 | 1,922,365,124.00 |
Other equity instruments | ||
Including: Preferred shares | ||
Perpetual bonds | ||
Capital reserve | 23,295,617,732.36 | 22,839,598,324.56 |
Less: Treasury stock | ||
Other comprehensive income | -1,076,173,923.64 | -826,697,303.06 |
Special reserve | 16,867,746.91 | 10,201,178.30 |
Surplus reserves | 890,690,322.28 | 890,690,322.28 |
General reserve | ||
Unappropriated profit | 14,032,426,748.69 | 12,329,120,098.70 |
Total shareholders' equity attributable to shareholders of the parent | 39,081,793,750.60 | 37,165,277,744.78 |
Minority interests | 70,346,150,494.79 | 68,636,378,868.75 |
Total shareholders' equity | 109,427,944,245.39 | 105,801,656,613.53 |
Total liabilities and shareholders' equity | 170,526,198,246.65 | 168,728,326,345.77 |
Legal Representative: Wang XiufengChief Financial Officer: Tu XiaopingHead of Accounting Department: Sun Ligan
2. Consolidated income statement for Q1~Q3
Unit: RMB
Item
Item | Q1~Q3 2021 | Q1~Q3 2020 (restated) |
1. Operating income | 11,387,276,388.20 | 9,247,217,881.20 |
Including: Operating income | 11,387,276,388.20 | 9,247,217,881.20 |
Interest income | ||
Premium income | ||
Handling charge and commission income | ||
2. Costs and expenses | 9,131,716,482.40 | 8,217,625,503.24 |
Including: Operating costs | 6,548,603,891.39 | 5,713,339,462.97 |
Interest expense | ||
Handling charge and commission expense | ||
Surrenders | ||
Net claims paid | ||
Net amount provided as policy reserve | ||
Expenditure on policy dividends | ||
Reinsurance premium expense | ||
Taxes and surcharges | 133,990,419.75 | 119,699,869.79 |
Selling expense | ||
Administrative expenses | 1,172,298,701.24 | 1,133,073,801.82 |
Research and development expenses | 144,232,447.88 | 111,332,290.36 |
Finance expenses | 1,132,591,022.14 | 1,140,180,078.30 |
Including: Interest expense | 1,351,792,050.87 | 1,485,045,813.18 |
Interest income | 279,112,021.80 | 232,187,519.66 |
Add: Other income | 328,343,162.91 | 86,867,728.76 |
Investment income (Loss is marked with "-") | 4,736,067,742.42 | 2,514,918,383.87 |
Including: Income from investments in associates and joint ventures | 4,663,792,324.91 | 2,360,720,358.35 |
Income from the derecognition of financial assets at amortized cost (Loss is marked with "-") | ||
Foreign exchange gain (Loss is marked with "-") | ||
Net gain on exposure hedges (Loss is marked with "-") | ||
Gains from changes in fair value (Loss is marked with "-" ) | 221,721,597.68 | -488,315,935.84 |
Gains from impairment of credit (Loss is marked with "-" ) | -2,687,424.43 | -861,941.16 |
Gains from impairment of assets (Loss is marked with "-" ) | 0.00 | 947,693.77 |
Gains on disposal of assets (Loss is marked with "-" ) | 9,352,429.28 | 693,724,248.54 |
3. Operating profit (Loss is marked with "-") | 7,548,357,413.66 | 3,836,872,555.90 |
Add: Non-operating income | 33,883,439.32 | 36,812,886.60 |
Less: Non-operating expenses
Less: Non-operating expenses | 18,602,014.05 | 31,024,511.92 |
4. Gross profit (Loss is marked with "-") | 7,563,638,838.93 | 3,842,660,930.58 |
Less: Income tax expenses | 1,213,675,997.89 | 612,234,821.19 |
5. Net profit (Loss is marked with "-") | 6,349,962,841.04 | 3,230,426,109.39 |
5.1 Categorization by continuity of operation | ||
5.1.1 Net profit from continuing operation (Loss is marked with "-") | 6,349,962,841.04 | 3,230,426,109.39 |
5.1.2 Net profit from discontinued operation (Loss is marked with "-") | ||
5.2 Categorization by attribution of ownership | ||
5.2.1 Net profit attributable to owners of the parent | 2,433,805,397.11 | 1,279,869,012.34 |
5.2.2 Profit or loss attributable to minority shareholders | 3,916,157,443.93 | 1,950,557,097.05 |
6. Other comprehensive income, net of tax | -814,503,149.36 | -1,796,050,700.29 |
Other comprehensive income attributable to owners of the parent, net of tax | -248,982,700.94 | -559,234,512.22 |
6.1 Other comprehensive income that will not be reclassified to profit or loss | -574,136.83 | -1,261,655.72 |
6.1.1 Changes from remeasurement of the defined benefit plan | ||
6.1.2 Other comprehensive income that cannot be reclassified to profit or loss under the equity method | -206,636.83 | -1,146,755.72 |
6.1.3 Fair value changes of investments in other equity instruments | -367,500.00 | -114,900.00 |
6.1.4 Changes in the fair value of the company’s credit risks | ||
6.1.5 Other | ||
6.2 Other comprehensive income that will be reclassified subsequently to profit or loss | -248,408,564.11 | -557,972,856.50 |
6.2.1 Other comprehensive income that can be reclassified to profit or loss under the equity method | -22,030,401.63 | 31,965,904.16 |
6.2.2 Changes in the fair value of investments in other debt obligations | ||
6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
6.2.4 Allowance for credit impairments in investments in other debt obligations | ||
6.2.5 Reserve for cash flow hedges | ||
6.2.6 Translation differences of financial statements denominated in foreign currencies | -226,378,162.48 | -589,938,760.66 |
6.2.7 Other | ||
Other comprehensive income attributable to minority interests, net of tax | -565,520,448.42 | -1,236,816,188.07 |
7. Total comprehensive income attributable to | 5,535,459,691.68 | 1,434,375,409.10 |
Shareholders of the parent
Shareholders of the parent | 2,184,822,696.17 | 720,634,500.12 |
Minority shareholders | 3,350,636,995.51 | 713,740,908.98 |
8. Earnings per share | ||
8.1 Basic earnings per share | 1.266 | 0.666 |
8.2 Diluted earnings per share | 1.266 | 0.666 |
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2021
3. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
Item
Item | Q1~Q3 2021 | Q1~Q3 2020 (restated) |
1. Cash flows from operating activities: | ||
Cash receipts from sales of goods and rendering of services | 10,888,133,177.65 | 8,959,720,002.58 |
Net increase in customer deposits and interbank deposits | ||
Net increase in borrowings from the central bank | ||
Net increase in loans from other financial institutions | ||
Premiums received on original insurance contracts | ||
Net proceeds from reinsurance | ||
Net increase in deposits and investments of policy holders | ||
Interest, handling charges and commissions received | ||
Net increase in interbank loans obtained | ||
Net increase in proceeds from repurchase transactions | ||
Net proceeds from acting trading of securities | ||
Receipts of tax refunds | 98,009,957.10 | 15,314,795.60 |
Other cash receipts relating to operating activities | 806,276,880.40 | 853,770,966.24 |
Sub-total of cash inflows | 11,792,420,015.15 | 9,828,805,764.42 |
Cash payments for goods purchased and services received | 3,059,419,442.45 | 2,590,413,953.61 |
Net increase in loans and advances to customers | ||
Net increase in deposits in the central bank and in interbank loans granted | ||
Payments for claims on original insurance contracts | ||
Net increase in interbank loans granted | ||
Interest, handling charges and commissions paid | ||
Policy dividends paid | ||
Cash payments to and on behalf of employees | 2,364,304,903.63 | 2,086,495,070.57 |
Payments of various types of taxes | 1,019,507,748.75 | 790,669,285.29 |
Other cash payments relating to operating activities | 589,346,905.48 | 615,991,824.16 |
Sub-total of cash outflows | 7,032,579,000.31 | 6,083,570,133.63 |
Net Cash Flows from Operating Activities | 4,759,841,014.84 | 3,745,235,630.79 |
2. Cash flows from investing activities: | ||
Cash receipts from disposals and recovery of investments | 8,880,000,000.00 | 5,802,647,276.82 |
Cash receipts from investments income | 2,694,402,313.30 | 1,375,104,379.13 |
Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 72,796,360.75 | 373,091,292.57 |
Net cash receipts from disposal of subsidiaries and other operating units |
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2021
Other cash receipts relating to investing activities
Other cash receipts relating to investing activities | 437,177,590.74 | 978,146,461.61 |
Sub-total of cash inflows | 12,084,376,264.79 | 8,528,989,410.13 |
Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 1,634,283,903.07 | 1,856,157,208.39 |
Cash payments to acquire investments | 12,757,321,671.10 | 10,944,362,282.33 |
Net increase in pledged loans granted | ||
Net cash payments for acquisitions of subsidiaries and other business units | ||
Other cash payments relating to investing activities | 16,434,653.35 | 3,011,289,010.12 |
Sub-total of cash outflows | 14,408,040,227.52 | 15,811,808,500.84 |
Net cash flows from investing activities | -2,323,663,962.73 | -7,282,819,090.71 |
3. Cash flows from financing activities: | ||
Cash receipts from capital contributions | 1,960,000.00 | |
Including: Cash receipts from capital contributions from Minority shareholder of subsidiary | 1,960,000.00 | |
Cash receipts from borrowings | 15,543,148,136.92 | 23,726,548,723.25 |
Other cash receipts relating to financing activities | 1,877,099,037.43 | |
Sub-total of cash inflows | 15,545,108,136.92 | 25,603,647,760.68 |
Cash repayments of borrowings | 17,826,164,384.14 | 17,803,978,213.32 |
Cash payments for distribution of dividends or profits or settlement of interest expenses | 2,584,070,937.80 | 2,537,837,832.05 |
Including: Payments for distribution of dividends or profits to Minority shareholder of subsidiary | 986,496,128.84 | 787,156,872.11 |
Other cash payments relating to financing activities | 13,196,969.01 | 757,948,189.24 |
Sub-total of cash outflows | 20,423,432,290.95 | 21,099,764,234.61 |
Net cash flows from financing activities | -4,878,324,154.03 | 4,503,883,526.07 |
4. Effect of foreign exchange rate changes on cash and cash equivalents | -74,581,012.67 | -64,516,925.71 |
5. Net increase in cash and cash equivalents | -2,516,728,114.59 | 901,783,140.44 |
Add: Opening balance of Cash and Cash Equivalents | 11,899,943,358.25 | 7,787,660,214.80 |
6. Closing balance of cash and cash equivalents | 9,383,215,243.66 | 8,689,443,355.24 |
China Merchants Port Group Co., Ltd. The Report for the Third Quarter of 2021
(II) Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Initial Execution Year ofthe New Standards Governing Leases from 2021
□ Applicable √ Not applicable
2. Retrospective Restatement of Previous Comparative Data due to the Initial Execution ofthe New Standards Governing Leases from 2021
□ Applicable √ Not applicable
(III) Independent Auditor’s ReportIndicate 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.
30 October 2021