[中报]招港B:2021年半年度报告（英文版）（更新后）
原标题:招港B:2021年半年度报告（英文版）（更新后） 说明: 中英文全称logo-左右-蓝金 CHINA MERCHANTS PORT GROUP CO., LTD. INTERIM REPORT 2021 Date of Disclosure: 31 August 2021 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior managers of China Merchants Port Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. Wang Xiufeng, the Company’s legal representative, Tu Xiaoping, the Company’s Chief Financial Officer, and Sun Ligan, the person-in-charge of the accounting organ hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. All the Company’s directors have attended the Board meeting for the review of this Report and its summary. Any forward-looking statements such as future plans or development strategies mentioned herein shall not be considered as the Company’s promises to investors. And investors are reminded to exercise caution when making investment decisions. Possible risks faced by the Company and countermeasures have been explained in “Part III Management Discussion and Analysis” herein, which investors are kindly reminded to pay attention to. Securities Times, Shanghai Securities News, Ta Kung Pao (HK) and www.cninfo.com.cn have been designated by the Company for information disclosure. And all information about the Company shall be subject to what’s disclosed on the aforesaid media. The Company is not subject to any industry-specific disclosure requirements. The Company has no interim dividend plan, either in the form of cash or stock. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail. Table of Contents Part I Important Notes, Table of Contents and Definitions .................................... 1 Part II Corporate Information and Key Financial Information ............................ 6 Part III Management Discussion and Analysis ...................................................... 10 Part IV Corporate Governance ............................................................................... 37 Part V Environmental and Social Responsibility ................................................... 40 Part VI Significant Events ........................................................................................ 47 Part VII Share Changes and Shareholder Information ........................................ 60 Part VIII Preference Shares ..................................................................................... 66 Part IX Bonds ............................................................................................................ 67 Part X Financial Statements ..................................................................................... 71 Documents Available for Reference I. Financial Statements carrying the signatures and stamps of the Company Principal, the Chief Financial Officer and the person in charge of accounting firm; II. Original copies of all documents and the announcements thereof disclosed in the reporting period on “Securities Times”, “Shanghai Securities News” and “Ta Kung Pao”. 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 CMPort Holdings China Merchants Port Holdings Company Limited (00144.HK) CSRC China Securities Regulation Commission Jifa Logistics Dalian Port Jifa Logistics Co., Ltd. DPCD Dalian Port Container Development Co., Ltd. Yingkou Port Group Yingkou Port Group Co., Ltd. DPN Dalian Port Logistics Network Co., Ltd. YPIT Yingkou Port Information Technology Co., Ltd. CMIT/ CMHIT China Merchants International Technology Co., Ltd., formerly known as China Merchants Holdings (International) Information Technology Co., Ltd. Dongguan Machong Dongguan Chiwan Port Service Co., Ltd. Shantou Port Shantou CMPort Group Co., Ltd. Zhanjiang Port Zhanjiang Port (Group) Co., Ltd. Shunde New Port Guangdong Yide Port Limited Zhangzhou Port Zhangzhou China Merchants Port Co., Ltd. CMICT Ningbo Daxie China Merchants International Container Terminal Co., Ltd. CICT Colombo International Container Terminals Ltd. HIPG Hambantota International Port Group LCT Lome Container Terminals Ltd. TCP TCP Participa..es S.A CM ePort The wharf e-commerce platform, i.e. the unified customer service platform TEU Twenty Foot Equivalent Unit Haixing Harbor Shenzhen Haixing Harbor Development Co., Ltd. Yingkou Port Yingkou Port Co., Ltd. Liaoning Port/ Dalian Port Liaoning Port Co., Ltd., formerly known as Dalian Port (PDA) Company Limited SASAC of the State Council State-Owned Assets Supervision and Administration Commission of the State Council SIPG Shanghai International Port (Group) Co., Ltd. Tianjin Port Container Terminal Tianjin Port Container Terminal Co., Ltd. QQCTU Qingdao Qianwan United Container Terminal Co., Ltd. CMCS China Merchants Container Services Limited Modern Terminals Modern Terminals Limited Taiwan Kao Ming Container Kao Ming Container Terminal Corp. TL Terminal Link S.A.S. Kumport Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Sirketi PDSA Port de Djibouti S.A. TICT Tin-Can Island Container Terminal Ltd. QQTU Qingdao Qianwan United Terminal Co., Ltd. Qingdao Dongjiakou Qingdao Port Dongjiakou Ore Terminal Co., Ltd. Laizhou Port China Shipping Port (Laizhou) Co., Ltd. Xiamen Port Zhangzhou China Merchants Xiamen Port Affairs Co., Ltd. Ningbo Port Ningbo Zhoushan Port Company Limited The cninfo website www.cninfo.com.cn COD Chemical Oxygen Demand RTG Rubber Tyre Gantry VOC Volatile Organic Compounds PCR Polymerase Chain Reaction Pk23 Pk23 Community, Djibouti City SZSE Shenzhen Stock Exchange The “Articles of Association” The Articles of Association of China Merchants Port Group Co., Ltd. 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 Corporate Information and Key Financial Information I Corporate Information Stock name CM Port Group/ CM Port Group B Stock code 001872/201872 Stock exchange for stock listing Shenzhen Stock Exchange Company name in Chinese 招商局港口集团股份有限公司 Abbr. (if any) 招商港口 Company name in English (if any) China Merchants Port Group Co., Ltd. Abbr. (if any) CMPort Legal representative Wang Xiufeng II Contact Information Board Secretary Securities Representative Name Li Yubin Hu Jingjing Address 24/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang Street, Nanshan, Shenzhen, PRC 24/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang Street, Nanshan, Shenzhen, PRC Tel. +86 755 26828888 +86 755 26828888 Fax +86 755 26886666 +86 755 26886666 Email address [email protected] [email protected] III Other Information 1. Contact Information of the Company Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes, website address and email address of the Company in the Reporting Period. □ Applicable √ Not applicable No change occurred to the said information in the Reporting Period, which can be found in the 2020 Annual Report. 2. Media for Information Disclosure and Place where this Report is Lodged Indicate by tick mark whether any change occurred to the information disclosure media and the place for lodging the Company’s periodic reports in the Reporting Period. □ Applicable √ Not applicable The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing the Company’s periodic reports and the place for lodging such reports did not change in the Reporting Period. The said information can be found in the 2020 Annual Report. 3. Other Relevant Information Indicate by tick mark whether any change occurred to the other relevant information in the Reporting Period. □ Applicable √ Not applicable IV Key Financial Information Indicate by tick mark whether there is any retrospectively restated datum in the table below. √ Yes □ No Reason: Business combination under common control On 18 December 2020, the Company signed the Equity Subscription and Capital Increase Agreement for CMHIT with the Company's subsidiaries, CMPort Holdings and CMHIT, Jifa Logistics, DPCD, and Yingkou Port Group. According to the Equity Subscription and Capital Increase Agreement, Jifa Logistics and DPCD would increase the capital of CMHIT with 29.40% and 49.63% of their respective shares in DPN, and Yingkou Port Group would increase the capital of CMHIT with 100% of its equity in YPIT. Before and after the merger, CMHIT, DPN and YPIT are all subject to the final control of CMG, the actual controller of the Company, and such control is not temporary. The above capital increase was completed on 9 February 2021. Upon completion of the capital increase, CMHIT changed its name to CMIT. The Company, CMPort Holdings, Jifa Logistics, DPCD and Yingkou Port Group will hold 13.18%, 43.74%, 13.26%, 22.38% and 7.44% equity in CMIT, respectively. CMIT remains a majority-owned subsidiary of the Company. CMIT holds 79.03% equity in DPN and 100% equity in YPIT respectively, and is able to exercise control over the latter two companies. Therefore, since 9 February 2021, the Company will follow the accounting processing method for enterprise merger under the same control and include DPN and YPIT in the consolidated scope of the Company's consolidated financial statements from the beginning of the comparative financial statement period. H1 2021 H1 2020 Change (%) Original Restated Restated Operating revenue (RMB) 7,339,942,862.26 5,922,497,158.48 5,962,497,716.96 23.10% Net profit attributable to the listed company’s shareholders (RMB) 1,677,035,346.17 632,798,585.83 632,292,086.16 165.23% Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) 1,644,696,060.97 544,591,914.54 544,085,414.87 202.29% Net cash generated from/used in operating activities (RMB) 2,934,960,407.96 2,071,426,144.92 2,057,741,203.08 42.63% Basic earnings per share (RMB/share) 0.87 0.33 0.33 163.64% Diluted earnings per share (RMB/share) 0.87 0.33 0.33 163.64% Weighted average return on equity (%) 4.43% 1.77% 1.76% 2.67% 30 June 2021 31 December 2020 Change (%) Original Restated Restated Total assets (RMB) 168,701,333,012.06 168,543,611,777.21 168,728,326,345.77 -0.02% Equity attributable to the listed company’s shareholders (RMB) 38,143,327,362.51 37,117,806,052.18 37,165,277,744.78 2.63% The total share capital at the end of the last trading session before the disclosure of this Report: Total share capital at the end of the last trading session before the disclosure of this Report (share) 1,922,365,124 Fully diluted earnings per share based on the latest total share capital above: Fully diluted earnings per share based on the latest total share capital above (RMB/share) 0.87 V Accounting Data Differences under China’s Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards 1. Net Profit and Equity under CAS and IFRS □ Applicable √ Not applicable No difference for the Reporting Period. 2. Net Profit and Equity under CAS and Foreign Accounting Standards □ Applicable √ Not applicable No difference for the Reporting Period. 3. Reasons for Accounting Data Differences between Domestics and Foreign Accounting Principle □ Applicable √ Not applicable VI Exceptional Gains and Losses Unit: RMB Item Amount Note Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) 4,731,273.76 - 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) 292,333,022.53 - Capital occupation charges on non-financial enterprises that are charged to current profit or loss 118,821,999.88 - 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 and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other investments in debt obligations (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) -488,532,866.45 - Reversed portions of impairment allowances for accounts receivable and contract assets which are tested individually for impairment 94,099.17 - Custodian fees earned from entrusted operation 471,698.11 - Non-operating income and expense other than the above 19,007,039.27 - Less: Income tax effects -74,697,555.98 - Non-controlling interests effects (net of tax) -13,971,253.45 - Total 32,339,285.20 -- Explanation of why the Company reclassifies recurrent gain/loss as an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable √ Not applicable No such cases for the Reporting Period. Part III Management Discussion and Analysis I Principal Activity of the Company in the Reporting Period 1. Main business scope and business models The Company is principally engaged in the handling, warehousing and transportation of containers and bulk cargoes, as well as the provision of other ancillary services. It principally operates 27 container berths and 17 bulk cargo berths in the ports in West Shenzhen and Dongguan Machong, 9 container berths, 2 bulk cargo berths, 10 general cargo berths, and 1 coal-handling specific berth in Shantou Port, 2 container berths and 33 bulk cargo berths in Zhanjiang Port, 4 multi-purpose berths in Shunde Port, 2 container berths and 6 bulk cargo berths in Zhangzhou Port, 4 container berths in Ningbo Daxie, 4 container berths in CICT, Sri Lanka, 4 multi-purpose berths, 2 oil berths and 4 container berths in HIPG, Sri Lanka, 3 container berths in LCT, Togo, and 4 container berths in TCP, Brazil. Moreover, the Company invests in container hubs in Shanghai, Ningbo and Tianjin and expands its layout to ports in Asia, Africa, Europe, Oceania, South America and North America. The major business segments of China Merchants Port Group Co., Ltd. are as follows: Business Segments Applications Cargo handling and warehousing Container handling and warehousing: the Company provides ship berthing, loading and discharging services to ship companies, offers container storage service to ship companies and cargo owners and provides overhead box services to tractor companies. The Company also engages in the businesses of division or merger of cargoes in containers, container leasing and container maintenance; Bulk cargo handling and warehousing: the Company is engaged in bulk cargo handling and transportation in port zones, as well as storage services in yards. The major types of cargoes handled include food, steel, woods and sandstones. Ancillary port- related services The ancillary port-related services of the Company mainly include tugboat berthing assistance and barge services at the arrival of ships to the ports, tallying in the course of cargo handling, and supply of shore power and freshwater for vessels. Bonded logistics operations The Company provides various services for clients (including logistics companies, trading companies or cargo owners), for example, warehouse/yard leasing, loading and unloading in warehouses/yards, customs clearance and division or merger of cargoes at terminals. It also provides documentation services for tractors arriving or leaving the bonded logistics parks. 2. Development stage and cyclical characteristic of the industry in which the Company operates and its industry position during the Reporting Period (1) External economic environment In the first half of 2021, major economies such as the United States and Europe have eased the pandemic and accelerated vaccination. Despite the recurring pandemic situations in some European and American countries and developing countries, the global economy has recovered and continued to recover amidst fluctuations because of the fiscal and monetary stimulus policies generally adopted by various countries and the resumption of industrial production and consumption activities. Among them, the production side was gradually approaching the level before the pandemic, while the consumption side was accelerating recovery, with the trade in goods and services continued to grow steadily. According to the “World Economic Outlook” report published by the International Monetary Fund (“IMF”) in July 2021, the global economy in 2021 was expected to grow by 6%, representing a year-on-year increase of 9.2 percentage points. Among that, growth forecasts for developed economies were adjusted upwards and they were projected to grow by 5.6%, up by 10.2 percentage points year-on-year, while growth prospects in emerging markets and developing economies deteriorated and they were expected to grow by 6.3%, up by 8.4 percentage points year-on-year. Besides, according to the forecast of the World Trade Organization (WTO) in April, global trade will increase by 8% in 2021 due to the rapid promotion of vaccines and the strong government intervention in the economy. Benefiting from the good results of pandemic prevention and control and the support of the "Six Stabilities"(六穩 ) and "Six Security"(六保 ) policies, China's macro economy recovered steadily and tended to be balanced in the first half of 2021. According to the National Bureau of Statistics, China's GDP was RMB53.2167 trillion in the first half of 2021, up by 12.7% year-on-year at comparable prices. In terms of quarters, the first quarter increased by 18.3% year-on-year, and the second quarter by 7.9%. On the other hand, benefiting from the recovery of the global economy in the first half of 2021, China's monthly import and export have achieved positive year-on-year growth for 13 consecutive months, further consolidating the steady growth of foreign trade. According to the statistics published by the General Administration of Customs, the total value of China's import and export of goods trade in the first half of 2021 was RMB18.07 trillion, representing an increase of 27.1% as compared to that of the corresponding period in 2020, among which the export value was RMB9.8493 trillion, up by 28.1% year-on-year, and the import value was RMB8.2157 trillion, up by 25.9% year-on-year. With the export value offsetting by import value, the trade surplus was RMB1.6336 trillion. (2) Market environment of port and shipping industry Since 2021, with the widespread use of the vaccination against COVID-19, pandemic prevention and control in United States and European countries have been steadily improving, and the demand for global trade in goods has rebounded, inceasing the demand in the martime transport market. However, while export demand continues to increase, the backflow of empty containers in European and American ports is slow due to the impact of the pandemic, coupled with the "black swan events" such as the Suez Canal blockage and the pandemic in Yantian Port, resulting in ship delay, port congestion, route adjustments, etc. from time to time. The distribution of containers is partially unbalanced, and the effective shipping capacity continues to decline, and the price of shipping in the international market continues to rise. According to the Drewry World Container Index, shipping price in the first half of 2021 has set the largest increase record since 2012, and the freight rate has increased by more than 300% compared with that of the same period in 2020. Due to gradual recovery of the global trade , in the first half of 2021, the overall operations of the port industry are in good condition, and port throughput and berth occupancy rate continued to rise. From a national perspective, the global demand and supply gap in the first half of 2021 led to the increase in China's export. The container throughput of major ports showed a rapid growth trend. According to the data published by the Ministry of Transport, in the first half of 2021, the accumulated cargo throughput handled by the Chinese ports reached 7.64334 billion tonnes, up by 13.2% year-on- year, and the accumulated container throughput handled was 138.18 million TEUs, representing an increase of 15.0% year-on-year, of which, 4.96313 billion tonnes of cargo were handled by coastal ports, representing a year-on-year increase of 10.3%, and totally 121.98 million TEUs were handled by coastal ports, representing a year-on-year increase of 14.0%. With regard to innovative development, new opportunities in the industry continue to emerge, and new outlets such as digitization, carbon neutralization, and new infrastructure have brought new impetus to the transformation and development of the industry. (3) The position of the Company in the industry The port industry is a crucial cornerstone industry for national economic and social development, and is closely linked to global economy and trade. The Company is the largest port developer, investor and operator in the PRC and the leading comprehensive port service provider in the world, with a well-developed port network at major hub locations along coastal China. It has also successfully established presences in Asia, Africa, Europe, Oceania, South America and North America. By its proactive, sound and efficient operating style, the Company capitalizes on its global port portfolio, professional management experience, the self-developed state-of-the-art terminal operation system and integrated logistics management platform for exports and imports to provide timely and efficient port and maritime logistics services along with comprehensive and modern integrated logistics solutions to its customers. In addition, the Company also invests in bonded logistics operation, launches integrated park development business, facilitates the transformation and upgrade of port industry, and develops port supporting industries, dedicated to improving industry efficiency and creating greater value through the synergies of the existing terminal network. II. Core competitiveness analysis 1. Sound shareholder background and resource integration ability Established in 1872, which is 149 years ago, CMG, the actual controller of the Company, has become an exemplary model for Chinese enterprises and developed strong brand power. It is also a key state- owned enterprise under the direct administration of the PRC central government. Headquartered in Hong Kong, CMG is an integrated enterprise with diversified businesses and one of the four major Chinese enterprises in Hong Kong. Currently, it is mainly engaged in three core industries namely comprehensive transportation, characteristic finance, and comprehensive development and operation of cities and parks, and is realizing the transformation from the three main businesses to the three major platforms of industrial operation, financial services, investment and capital operation. CMG has been rated as a Grade A enterprise in the Operating Results Assessment of the State-owned Assets Supervision and Administration Commission of the State Council for 17 consecutive years and is a central state-owned enterprise that owns two Fortune 500 companies. Being a crucial player and facilitator of the national “Belt and Road” initiative, CMG has accelerated its international development and preliminarily formed a relatively complete network of overseas ports, logistics, finance, and park business. The sound shareholder background and ample domestic and overseas resources integration ability of CMG have provided strong support for CMPort to construct a global port investment and operation platform with international vision and global expansion capabilities and to stand out in the fierce global competition. 2. Balanced and established global port network presence ability As an important carrier for domestic and overseas port investment and operation of CMG, the Company gained in-depth insight into the current states, trends and driving factors of the global industrial chain. Based on the insight, it followed the development patterns of the global economy and trade and the industry, and seized the significant policy opportunities arising from the key “Belt and Road” initiative and the development of key regions such as the Guangdong-Hong Kong-Macao Greater Bay Area and the integration of Yangtze River Delta to actively build a global port network and arrange for the investment and allocation of global resources. In recent years, through mergers, acquisitions, reorganization, renovation of old ports, and construction of new ports, the Company has been consistently optimizing its modern port network with global coverage, enhancing the value of the port industry, and pushing forward balanced regional development. After years of overseas development, CMPort has established global business presence. Its port network comprises 50 ports which are located in 26 countries and regions on six continents. Adhering to the principle of “extensive consultation, joint development and shared benefits”, CMPort has developed local-based business operation and formed a community of shared future with stakeholders from countries and regions along the “Belt and Road” initiative to explore development opportunities with concerted efforts. At the same time, the diversified investment and operation of port assets at home and abroad have also effectively enhanced its capabilities of resisting risks of industry fluctuations, trade fictions and unexpected events. 3. Continuously optimizing supply chain comprehensive service ability The Company is committed to becoming a world-class comprehensive port service provider and centers on many aspects to continue to optimize the comprehensive service capabilities of the supply chain. The first aspect is the advanced comprehensive development capabilities. Taking port business as the core and leveraging the synergy of different port zones as well as city industry integration, the Company is actively exploring and facilitating the comprehensive port development model of “Port- Park-City”. Based on the traditional loading and discharging and ancillary services at ports, it established the comprehensive development model that offered high value-added services to enterprises. Currently, the Company has participated in promoting the port-oriented regional comprehensive development and construction in various overseas regions and has achieved phased progresses, fostering new profit growth points for the Company. The second aspect is sound comprehensive logistics service capabilities. The Company aims at increasing its global presence with shipping routes across five continents. As both the shipping and port sectors gradually shifted to forming alliances, the Company is actively integrating its domestic and overseas supply chain resources and centering on customer needs to provide more comprehensive and effective integrated logistics service solutions for the global supply chain, forming its unique competitive strength. Based on the West Shenzhen homebase port and the Shunde New Port, it built the first complex port in the Greater Bay Area to meet the unsatisfied customer needs, promoting the development of the Guangdong-Hong Kong-Macao Greater Bay Area. The Company also secured the international supply chain and supply for people’s livelihood in the country through serving domestic and foreign trade business, thereby accelerating the formation of China’s new development pattern, the domestic economic cycle as the mainstay and the domestic and international economic cycles boosting each other. 4. Independent and innovative smart port construction ability Grasping the development opportunities of the new technology wave, the Company proactively pushed forward the construction of smart ports and promoted the digital transformation and intelligent upgrade of ports through “CM Chip” and “CM ePort”. “CM Chip” is a core port operating system independently developed and built by the Company, including CTOS (Container Terminal Operation System), BTOS (Bulk Cargo Terminal Operation System), and LPOS (Logistics Park Operation System). At present, the “CM Chip” series of products independently developed by the Company have been basically applied to domestic and overseas terminals controlled by the Company, laying a solid foundation for the Company's smart port construction. “CM ePort” is a digital integrated service ecological platform based on the Company's global port network and targeted at the port logistics industry, integrating ports, shipping, logistics and third-party e-commerce platforms and providing smart logistics, smart ports and smart finance and business services to help build a smart port ecosystem. The Company took the transformation project of Haixing Harbor as a pilot, and successfully built " Mawan Smart Port" by centering on 9 smart elements such as “CM Chip”, “CM ePort”, automation technology, smart port, 5G network application, blockchain, Beidou system, artificial intelligence application, and green and low-carbon development, and " Mawan Smart Port" has become China's first automated terminal upgraded from a traditional terminal, forming a comprehensive solution for smart ports with " CMPort’s characteristics". 5. Sound and efficient port management ability Adhering to the proactive, sound and efficient operating style and benefiting from its global port assets and resources portfolio, the Company is committed to providing customers with timely and efficient port and maritime logistics services as well as professional and first-class solutions, and has become the preferred partner for customers and an important gateway for the country’s foreign trade, thereby making due contributions to the country’s foreign trade development. At the same time, the Company also made an extensive investment in bonded logistics business to expand its port value chain and enhance industrial value. Taking advantages of the synergy of its existing terminal network, the Company created values for both its customers and shareholders. The Company has earned itself good reputation across the industry by its professional management experience accumulated for years, its self-developed global leading terminal operating system and integrated logistics management platform for import and export, its extensive maritime logistics support system with all-rounded modern integrated logistics solutions, and its high-quality engineering management and reliable service offerings. III. Core Business Analysis 1. Port Business Review (1) Overview of port business In the first half of 2021, the Company’s ports handled a total container throughput of 67.23 million TEUs, up by 21.1% year-on-year. Bulk cargo volume handled by the Company’s ports increased by 40.2% year-on-year to 308 million tonnes. With respect to container business, the container throughput handled by the Group’s ports in Mainland China reached 46.83 million TEUs, up by 17.5% year-on-year, which is mainly due to stable domestic pandemic situation and economic recovery. The total container throughput handled by the Group’s ports in Hong Kong and Taiwan reached 3.77 million TEUs, up by 10.6% year-on-year. The Group’s overseas ports handled a total container throughput of 16.63 million TEUs, representing an increase of 35.8% year-on-year, which was mainly benefited from the inclusion of the eight terminals newly acquired by TL in the statistics. With respect to bulk cargo business, total bulk cargo volume handled by the Group’s ports in Mainland China increased by 40.6% year-on-year to 305 million tonnes, which is mainly due to the inclusion of Yingkou Port business in the statistics by the Company since February and the overall strong rebound of the bulk cargo business. Table 3-1 Throughput of the Company and changes in the first half of 2021 Item The first half of 2021 The first half of 2020 Changes Container throughput (’0,000 TEU) 6,723 5,550 21.1% Among which: Mainland China 4,683 3,984 17.5% Hong Kong and Taiwan 377 341 10.6% Overseas 1,663 1,225 35.8% Bulk cargo throughput (hundred million tonnes) 3.08 2.20 40.2% Among which: Mainland China 3.05 2.17 40.6% Overseas 0.03 0.03 0% Note: 1. The statistics represented the total throughput of the holding subsidiaries, associates and joint ventures of the Company; 2. Due to the merger by absorption through share swap between Dalian Port (PDA) Company Limited, a joint stock company of the Company, and Yingkou Port Liability Co., Ltd. (Yingkou Port) , which were consolidated as Liaoning Port Co., Ltd., the Company has included Yingkou Port business in the statistics since February 2021. (2) Operation condition of port business by region Table 3-2 Container throughput of the Company and changes in the first half of 2021 (in ’ 0,000 TEU) Region and port company The first half of 2021 The first half of 2020 Changes Pearl River Delta Holding company West Shenzhen Port Zone 650 517 25.7% Shunde New Port 22 18 22.2% Joint stock company Chu Kong River Trade Terminal 55 48 14.6% Yangtze River Delta Joint stock company SIPG Group 2,294 2,006 14.4% Holding company Ningbo Daxie 170 148 14.9% Bohai Rim Joint stock company Tianjin Port Container Terminal 447 367 21.8% QQCTU 418 381 9.7% Liaoning Port Co., Ltd. 465 360 29.2% South-East region of Mainland China Holding company Zhangzhou Port 12 16 -25.0% Shantou Port 92 62 48.4% South-West region of Mainland China Holding company Zhanjiang Port 58 61 -4.9% Hong Kong and Taiwan Holding company/ Joint stock company CMCS/ Modern Terminals 282 263 7.2% Joint stock company Taiwan Kao Ming Container 95 78 21.8% Overseas Holding company CICT 150 138 8.7% TCP 54 48 12.5% LCT 73 61 19.7% Joint stock company TL 1,274 860 48.1% Kumport 62 60 3.3% PDSA 35 42 -16.7% TICT 15 16 -6.3% Total 6,723 5,550 21.1% Note: 1. The Company has included the business volume of eight terminals newly acquired by the joint stock company Terminal Link in the statistics since April 2020; 2. Due to the merger by absorption through share swap between Dalian Port (PDA) Company Limited, a joint stock company of the Company, and Yingkou Port Liability Co., Ltd. (Yingkou Port) , which were consolidated as Liaoning Port Co., Ltd., the Company has included Yingkou Port business in the statistics since February 2021. Table 3-3 Bulk cargo volume handled by the Company and changes in the first half of 2021 (in ’0,000 tonnes) Region and port company The first half of 2021 The first half of 2020 Changes Pearl River Delta Holding company West Shenzhen Port Zone 819 746 9.8% Dongguan Machong 789 770 2.5% Shunde New Port 260 154 68.8% Joint stock company Chu Kong River Trade Terminal 142 121 17.4% Yangtze River Delta Joint stock company SIPG Group 4,464 3,473 28.5% Bohai Rim Joint stock company QQTU 916 788 16.2% Qingdao Port （未完）  |