Financial Performance - Revenue for the year ended December 31, 2024, increased by 3.3% to $1,502.99 million compared to $1,454.35 million in 2023[5] - Profit attributable to equity holders of the company decreased by 4.8% to $308.82 million from $324.56 million in the previous year[11] - The company’s basic earnings per share decreased by 8.9% to 8.50 cents from 9.33 cents in 2023[11] - Operating profit for the year was $267.12 million, a decrease from $274.82 million in 2023[11] - The total comprehensive income for the year was $288.57 million, down from $366.20 million in 2023[13] - The profit attributable to the company's equity holders for 2024 was $308,816,000, a decrease of 4.8% compared to $324,557,000 in 2023[55] - Total profit from both controlling and non-controlling terminals in 2024 was $424,426,000, down 1.7% from $431,601,000 in 2023[56] - Profit from controlling terminals was $103,137,000 in 2024, a significant decline of 22.4% from $132,871,000 in 2023[56] - The profit from Xiamen Yuanhai Container Terminal decreased to $36,109,000 in 2024 from $40,408,000 in 2023, a reduction of $4,299,000[56] - The profit from Piraeus Container Terminal fell to $29,002,000 in 2024, down 38.5% from $47,165,000 in 2023[56] Revenue and Throughput - Total throughput increased by 6.1% year-on-year to 144,032,722 TEUs, with equity throughput rising by 4.5% to 45,318,318 TEUs[5] - The total throughput for the company in 2024 is projected to reach 144,032,722 TEUs, representing a 6.1% increase from 2023[89] - The total throughput in the China region increased by 6.5% to 109,808,199 TEUs, accounting for 76.2% of the group's total throughput[77] - The Yangtze River Delta region saw a significant increase in total throughput by 13.1% to 16,484,202 TEUs, representing 11.4% of the group's total[79] - The overseas region's total throughput rose by 4.5% to 34,224,523 TEUs, making up 23.8% of the group's total[83] - The Bohai Rim region's total throughput increased by 6.4% to 49,550,213 TEUs, accounting for 34.4% of the group's total[78] - The total throughput in the Southwest Coast region increased by 12.4% to 9,015,200 TEUs, representing 6.2% of the group's total[82] Assets and Equity - Total assets as of December 31, 2024, amounted to $12,021.39 million, up from $11,931.88 million in 2023[9] - The company’s total equity increased to $7,045.25 million from $6,842.53 million in the previous year[9] - The total segment assets as of December 31, 2024, were $12,021,386,000, an increase from $11,931,881,000 as of December 31, 2023[23] Expenses and Financial Management - The company’s financial expenses decreased to $152.45 million from $171.19 million in the previous year[11] - The group's total sales cost for 2024 was $1,086,164,000, reflecting a 5.1% increase from $1,033,491,000 in 2023[59] - Administrative expenses rose slightly by 2.5% to $168,776,000 in 2024 from $164,596,000 in 2023[60] - The group's financial expenses decreased by 10.9% to $152,451,000 in 2024, down from $171,189,000 in 2023[62] - Net financial expenses decreased to $123,248 thousand in 2024 from $143,191 thousand in 2023, a reduction of 13.91%[40] Dividends - The company declared an interim dividend of 1.560 cents, down 10.6% from 1.744 cents in 2023[4] - The second interim dividend for 2024 is set at 14.2 HK cents per share, compared to 15.5 HK cents in 2023[50] Taxation - The company reported a tax expense of $73,057,000 for the year ended December 31, 2024, compared to a tax expense of $35,206,000 in the previous year[26] - The total tax expense for 2024 was $(73,057,000), significantly higher than $(35,206,000) in 2023[8] Strategic Initiatives - The company aims to enhance its global network service efficiency and invest in emerging markets and regional markets[85] - The company is focusing on "digital intelligence" and "green low-carbon" initiatives to foster new productivity in ports[87] - The company plans to strengthen its supply chain resources through investments or acquisitions in the global industry chain[85] - The company is committed to building smart green ports and expanding clean energy applications[87] Sustainability and Governance - The company is committed to sustainable development, focusing on energy-saving measures and achieving carbon neutrality, as part of its "GRAND" sustainability framework[104] - The company has established a cybersecurity committee and a data management committee to enhance overall protection capabilities and accelerate data governance, aiming to realize the value of data assets[105] - The company has launched the world's first "Port Digital Twin Integrated Energy Management Platform," integrating energy management with digital twin technology to promote green low-carbon development strategies[107] - The company completed a qualitative analysis of climate scenarios and a carbon emission inventory for Scope 3, aiming to enhance climate resilience and adaptability[106] - The company is committed to sustainable procurement principles, implementing strict screening processes for suppliers and gradually strengthening ESG requirements to ensure long-term sustainability of the supply chain[106] - The company actively participates in ecological environment protection and promotes the recycling of wastewater and waste[108] - The company aims for a "zero harm" health and safety goal, providing diverse training and development opportunities to create a safe and harmonious work environment[110] - The company has been recognized as one of the national near-zero carbon terminal pilot projects, reflecting its commitment to environmental protection[106] - The company emphasizes the importance of biodiversity protection, with employees participating in coral exploration activities organized by the World Wildlife Fund[108] Awards and Recognition - The company received multiple awards in 2024, including "Best Port Operator" and "Best Investor Relations Company" from International Business magazine, highlighting its operational excellence and governance practices[101] - The company engaged with 274 institutions and 348 investors and analysts throughout the year, enhancing its investor relations and diversifying its shareholder base[103] Future Outlook - The company forecasts a GDP growth of 5.0% in 2024, significantly higher than the global estimate of around 3.0%[84]

Summary of Conference Call on Port Assets Industry Overview - The conference call discusses the impact of Li Ka-shing's CK Hutchison Group selling its port assets, which has garnered significant market attention. The deal, valued at $22.81 billion, involves the sale of core global port operations across 23 countries, including key ports at both ends of the Panama Canal, which are strategically important for global shipping networks [2][3]. Key Points and Arguments - **CK Hutchison Group's Sale**: The sale includes 43 ports and associated smart terminal management systems and global logistics networks, highlighting the strategic importance of these assets for trade, especially for China, which is the second-largest customer of the Panama Canal [2]. - **China Merchants Port's Overseas Investments**: China Merchants Port has invested in nine overseas port companies along the Belt and Road Initiative, with significant assets in Sri Lanka, Togo, Indonesia, and Brazil. In 2024, the container throughput for China Merchants Group's overseas terminals is projected to reach 37.363 million TEUs, a year-on-year increase of 9.7% [2][4]. - **COSCO Shipping Ports' Global Presence**: COSCO Shipping Ports controls 15 terminals globally, with significant operations in Europe, the Mediterranean, the Middle East, Southeast Asia, South America, and Africa. The Piraeus F4 terminal in Greece is noted as the largest container terminal in Greece and a major transshipment hub in the Eastern Mediterranean. In the first half of 2024, overseas business revenue accounted for 50.3% of COSCO's total revenue [2][5]. - **Recent Acquisitions**: In March 2025, China Merchants Group acquired a 51% stake in Indonesia's NPH Company for $6.122 million, which operates the largest container terminals in Jakarta. Additionally, a 70% stake in Brazil's Vistabay was acquired, which handles 560,000 barrels of crude oil daily [2][6]. - **Valuation and Dividend Potential**: The port sector is currently undervalued but shows high dividend potential. China Merchants is expected to have a dividend yield of 3.1% in 2024, while Shanghai Port is projected at 3.3%. H-shares for China Merchants and COSCO are expected to yield 5% and 5.8%, respectively. As capital expenditures decrease, companies are likely to increase their dividend payouts [2][7]. - **Market Response**: Following the announcement of the asset sale, shares of companies with overseas port assets, such as China Merchants Port, have seen significant increases, including a trading halt due to price surges, indicating market recognition of the value of port assets [2][3]. Other Important Insights - **Regional Performance Variability**: The Piraeus F4 terminal experienced a 12.9% year-on-year decline in total throughput in the first half of 2024 due to regional events, while other terminals in regions like Zeebrugge and Spain showed significant growth, indicating a mixed performance landscape across different geographical areas [2][5]. - **Strategic Resource Value**: The conference emphasized the increasing value of strategic resources in the context of global competition, suggesting that investors should pay attention to opportunities in companies like China Merchants and COSCO [2][7].

Financial Performance - Revenue for Q3 2024 rose by 11.2% to $398,958,000 compared to Q3 2023[2] - Profit attributable to equity holders decreased by 1.7% year-on-year to $81,859,000 in Q3 2024[2] - Revenue for the first nine months of 2024 increased by 5.8% to $1,108,769,000[3] - Profit attributable to equity holders for the first nine months decreased by 5.4% to $221,074,000[3] - Basic earnings per share for Q3 2024 decreased by 6.3% to 2.23 cents[2] Throughput Statistics - Total throughput increased by 5.1% year-on-year to 37,408,836 TEUs in Q3 2024[1] - Total throughput for the first nine months of 2024 increased by 7.1% to 107,267,337 TEUs[1] - The total throughput for the group as of September 30, 2024, was 37,408,836 TEUs, representing a 5.1% increase compared to 35,603,127 TEUs in the same period of 2023[18] - Total throughput in overseas regions increased by 4.0% year-on-year to 8,805,524 TEUs for the three months ending September 30, 2024, accounting for 23.5% of the group's total throughput[16] - Total throughput for the group for the nine months ending September 30, 2024, was 107,267,337 TEUs, up 7.1% from 100,175,999 TEUs in the same period of 2023[18] Regional Performance - In the Yangtze River Delta region, total throughput surged by 13.3% to 4,272,419 TEUs for the three months ended September 30, 2024, compared to 3,770,354 TEUs in the same period of 2023[12] - The total throughput in the Bohai Rim region increased by 5.1% to 12,889,080 TEUs for the three months ended September 30, 2024, compared to 12,261,670 TEUs in the same period of 2023[11] - The total throughput in the Pearl River Delta region rose by 4.4% to 7,712,337 TEUs for the three months ended September 30, 2024, compared to 7,390,310 TEUs in the same period of 2023[14] - The total throughput in the Southeast Coast and other regions decreased by 5.6% to 1,480,876 TEUs for the three months ended September 30, 2024, compared to 1,569,452 TEUs in the same period of 2023[13] - The total throughput for the Bohai Rim region reached 12,889,080 TEUs for the three months ending September 30, 2024, up 5.1% from 12,261,670 TEUs in the same period of 2023[18] Equity Throughput - The equity throughput for the three months ended September 30, 2024, was 11,736,527 TEUs, reflecting a 2.9% increase from 11,407,984 TEUs in the same period of 2023[9] - Equity throughput in overseas regions rose by 4.3% year-on-year to 3,423,585 TEUs, representing 29.2% of the group's equity throughput[16] - The equity throughput in the Yangtze River Delta region increased by 17.2% to 1,243,783 TEUs for the three months ended September 30, 2024, compared to 1,061,308 TEUs in the same period of 2023[12] - The equity throughput in the Bohai Rim region rose by 3.8% to 3,490,715 TEUs for the three months ended September 30, 2024, compared to 3,362,406 TEUs in the same period of 2023[11] Terminal Performance - Piraeus Container Terminal's total throughput decreased by 3.8% year-on-year to 1,149,158 TEUs due to route diversions around the Cape of Good Hope[16] - CSP Abu Dhabi Terminal's total throughput increased by 41.9% year-on-year to 475,604 TEUs, driven by the introduction of new shipping routes[16] - Qingdao Port International Co., Ltd. reported a throughput of 8,300,000 TEUs for the three months ending September 30, 2024, reflecting a 6.0% increase from 7,830,000 TEUs in the same period of 2023[18] - Dalian Container Terminal Co., Ltd. achieved a throughput of 1,357,989 TEUs for the three months ending September 30, 2024, marking a 12.9% increase from 1,202,732 TEUs in the same period of 2023[18] Strategic Initiatives - The overall throughput for the first three quarters increased by 7.1% year-on-year, supported by the integration strategy with the parent company[17] - Global trade is expected to continue its recovery, with increasing trade relations with emerging markets in ASEAN and Latin America[17] - The company plans to enhance service capabilities at key hub ports, including CSP Wuhan, Piraeus, and CSP Abu Dhabi[17] - Focus on innovation and digital transformation to improve core competitiveness and promote high-quality development[17] - Commitment to green port construction and upgrading energy structures to build a green port ecosystem[17] Miscellaneous - The financial data presented is unaudited and should not be relied upon for investment decisions as of September 30, 2024[21] - The board of directors includes a mix of executive and independent non-executive members, ensuring diverse oversight[21] - Investors are advised to consult professional advisors regarding their personal investment situations[21]

[Financial Highlights](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) [Financial Highlights](index=5&type=section&id=%E8%B2%A1%E5%8B%99%E6%91%98%E8%A6%81) In H1 2024, the company's revenue increased by 3.0% to $709.8 million, but profit attributable to equity holders decreased by 7.4% to $139.2 million, with basic earnings per share down 10.6%; gross margin remained stable, slightly decreasing by 0.1 percentage points to 28.0% H1 2024 Financial Highlights | Metric | H1 2024 (USD Million) | H1 2023 (USD Million) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 709.8 | 688.9 | +3.0 | | Gross Profit | 198.6 | 193.8 | +2.5 | | Gross Margin (%) | 28.0 | 28.1 | –0.1 percentage points | | Share of Profits from Joint Ventures and Associates | 155.4 | 153.6 | +1.1 | | Profit Attributable to Equity Holders of the Company | 139.2 | 150.3 | –7.4 | | Basic Earnings Per Share (US Cents) | 3.90 | 4.36 | –10.6 | [Business Review](index=6&type=section&id=%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) [Overall Business Performance](index=6&type=section&id=%E6%95%B4%E9%AB%94%E6%A5%AD%E5%8B%99%E8%A1%A8%E7%8F%BE) In H1 2024, the Group's total throughput increased by 8.2% to 69.86 million TEUs, driven by global trade recovery and China's foreign trade policies, with both controlled and non-controlled terminals achieving approximately 8% growth, and equity throughput growing by 6.3% H1 2024 Throughput Overview | Throughput Type | H1 2024 (TEU) | H1 2023 (TEU) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Throughput** | **69,858,501** | **64,572,872** | **+8.2** | | Total Throughput of Controlled Terminals | 15,914,213 | 14,731,490 | +8.0 | | Total Throughput of Non-Controlled Terminals | 53,944,288 | 49,841,382 | +8.2 | | **Equity Throughput** | **22,049,306** | **20,751,365** | **+6.3** | | Equity Throughput of Controlled Terminals | 9,653,624 | 9,074,454 | +6.4 | | Equity Throughput of Non-Controlled Terminals | 12,395,682 | 11,676,911 | +6.2 | - Business growth benefited from improved external demand and domestic foreign trade stabilization policies, with China's total goods trade import and export value increasing by **6.1%** year-on-year in the first half[9](index=9&type=chunk) [Regional Business Review](index=7&type=section&id=%E5%88%86%E5%9C%B0%E5%8D%80%E6%A5%AD%E5%8B%99%E5%9B%9E%E9%A1%A7) China's terminal business showed strong performance with total throughput increasing by 9.5%, notably in the Yangtze River Delta and Southwest Coastal regions; overseas total throughput grew by 4.1%, with the company effectively mitigating the Red Sea incident's impact on Piraeus Terminal by coordinating transshipments to other European terminals, while CSP Abu Dhabi Terminal saw rapid growth [China Region](index=7&type=section&id=%E4%B8%AD%E5%9C%8B%E5%9C%B0%E5%8D%80) Total throughput in the China region increased by 9.5%, accounting for 76.3% of the Group's total, with all major port clusters growing, most strongly in the Yangtze River Delta (+14.1%) and Southwest Coastal regions (+19.8%), driven by foreign trade route recovery and RCEP policy benefits - Total throughput in the China region increased by **9.5%** year-on-year to **53.34 million TEUs**, accounting for **76.3%** of the Group's total throughput[13](index=13&type=chunk) - Total throughput in the Yangtze River Delta region increased by **14.1%** year-on-year, with Nantong Tonghai Terminal (+**46.8%**) and CSP Wuhan Terminal (+**38.8%**) showing significant growth[15](index=15&type=chunk) - Total throughput in the Southwest Coastal region increased by **19.8%** year-on-year, primarily benefiting from RCEP policy dividends and increased economic and trade cooperation with ASEAN[18](index=18&type=chunk) [Overseas Region](index=7&type=section&id=%E6%B5%B7%E5%A4%96%E5%9C%B0%E5%8D%80) Total throughput in the overseas region increased by 4.1%; despite a 12.9% decline at Piraeus Terminal due to the Red Sea incident, the company effectively offset this by diverting cargo to CSP Zeebrugge Terminal (+8.7%) and CSP Spain-related companies (+13.2%), while CSP Abu Dhabi Terminal saw a significant 35.7% increase due to new routes - Total throughput in the overseas region increased by **4.1%** year-on-year to **16.52 million TEUs**, accounting for **23.7%** of the Group's total throughput[19](index=19&type=chunk) - Due to the Red Sea incident, Piraeus Terminal's total throughput decreased by **12.9%** year-on-year; the company mitigated this by coordinating cargo transshipment to CSP Zeebrugge Terminal and CSP Spain-related companies, driving their throughput growth by **8.7%** and **13.2%** respectively[19](index=19&type=chunk) - CSP Abu Dhabi Terminal's total throughput significantly increased by **35.7%** year-on-year to **0.86 million TEUs** by introducing new shipping routes[19](index=19&type=chunk) [Financial Review](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E5%9B%9E%E9%A1%A7) [Financial Analysis](index=10&type=section&id=%E8%B2%A1%E5%8B%99%E5%88%86%E6%9E%90) Despite a 3.0% revenue increase driven by controlled terminal throughput growth, profit attributable to equity holders decreased by 7.4%, primarily due to reduced profits from some controlled terminals (e.g., Piraeus), initial losses from new terminals (CSP Wuhan), increased exchange losses, and decreased fair value gains on convertible bonds - In H1 2024, profit attributable to equity holders of the company decreased by **7.4%** to **$139.2 million**, primarily impacted by multiple challenges in the global port industry[26](index=26&type=chunk) - Profit from controlled terminals decreased by **18.6%** year-on-year, mainly due to an **$8.05 million** profit reduction at Piraeus Terminal affected by the Red Sea incident, and increased losses at CSP Wuhan Terminal due to high fixed costs in its initial operation[27](index=27&type=chunk) - Revenue increased by **3.0%** year-on-year, primarily driven by business growth at CSP Spain, Tianjin Container Terminal, and CSP Abu Dhabi Terminal, but partially offset by an **11.2%** revenue decrease at Piraeus Terminal[29](index=29&type=chunk) - Finance costs increased by **3.6%** year-on-year, mainly due to rising interest rates on USD and EUR loans following interest rate hikes by the Federal Reserve and the European Central Bank[34](index=34&type=chunk) [Financial Position](index=12&type=section&id=%E8%B2%A1%E5%8B%99%E7%8B%80%E6%B3%81) The Group's financial position remained robust; as of June 30, 2024, total assets were $11.93 billion, and the net debt-to-equity ratio (excluding lease liabilities) slightly increased to 31.0%; the Group maintained sufficient cash and unutilized bank facilities, with a diversified medium-to-long-term debt structure across multiple currencies to hedge risks - Net cash generated from operating activities during the period was **$178 million**, and the Group continued to maintain robust cash flow[38](index=38&type=chunk) Assets and Liabilities (June 30, 2024) | Metric | Amount (USD Thousand) | | :--- | :--- | | Total Assets | 11,927,245 | | Total Liabilities | 5,030,329 | | Net Assets | 6,896,916 | | Total Outstanding Borrowings | 3,160,622 | | Cash Balance | 1,020,886 | | Unutilized Bank Facilities | 754,026 | - The net debt-to-equity ratio (excluding lease liabilities) was **31.0%**, a slight increase from **29.6%** at the end of 2023; the interest coverage ratio was **4.2 times**[40](index=40&type=chunk) Debt Structure Analysis (June 30, 2024) | Category | Composition | Percentage (%) | | :--- | :--- | :--- | | **By Repayment Period** | Within One Year | 17.9 | | | Within Five Years and Thereafter | 40.2 | | **By Type** | Secured Borrowings | 30.4 | | | Unsecured Borrowings | 69.6 | | **By Currency** | USD Borrowings | 48.7 | | | RMB Borrowings | 31.6 | | | EUR Borrowings | 16.9 | [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) [Outlook](index=14&type=section&id=%E5%B1%95%E6%9C%9B) The company maintains an optimistic outlook, anticipating continued global trade recovery; it will further optimize its global network, deepen lean operations, drive digital intelligence and green low-carbon initiatives, seize emerging market opportunities, enhance core hub port capabilities, and strive for high-quality development - WTO and IMF forecast global trade volume to grow by **2.6%** and **3.0%** respectively in 2024, indicating a positive market outlook[47](index=47&type=chunk) - The company will continue to leverage synergistic advantages with its parent company and the OCEAN Alliance, having already achieved an **8.2%** year-on-year increase in total throughput in the first half[47](index=47&type=chunk) - Future strategic priorities include: - **Optimizing Global Layout**: Enhancing asset structure and expanding into emerging markets and supply chain extension businesses - **Deepening Lean Innovation**: Achieving revenue growth and cost reduction through precise marketing and technological innovation - **Driving Digital Intelligence**: Focusing on smart port construction to improve operational efficiency and customer service capabilities - **Promoting Green Ports**: Accelerating energy structure transformation to build a green and low-carbon brand[47](index=47&type=chunk)[48](index=48&type=chunk) [First Interim Dividend](index=15&type=section&id=%E7%AC%AC%E4%B8%80%E6%AC%A1%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) [First Interim Dividend](index=15&type=section&id=%E7%AC%AC%E4%B8%80%E6%AC%A1%E4%B8%AD%E6%9C%9F%E8%82%A1%E6%81%AF) The Board declared a first interim dividend for 2024 of HKD 12.2 cents per share, lower than HKD 13.6 cents in the prior period, with a scrip dividend option available, payable on November 21, 2024 Details of 2024 First Interim Dividend | Item | Details | | :--- | :--- | | Dividend Amount | HKD 12.2 cents per share (H1 2023: HKD 13.6 cents) | | Payment Method | Cash, with Scrip Dividend Scheme option | | Book Closure Period | September 13 to September 19, 2024 | | Latest Time to Lodge Transfer for Dividend Entitlement | Before 4:30 p.m. on September 12, 2024 | | Dividend Payment Date | November 21, 2024 | [Disclosure of Interests](index=16&type=section&id=%E6%AC%8A%E7%9B%8A%E6%8A%AB%E9%9C%B2) [Share Option Scheme](index=16&type=section&id=%E8%82%A1%E7%A5%A8%E6%9C%9F%E6%AC%8A%E8%A8%88%E5%8A%83) Under the company's 2018 Share Option Scheme, all granted share options have fully lapsed, and no further options can be granted according to the scheme's terms - As of the report date, all share options granted under the 2018 Share Option Scheme have fully lapsed, with no outstanding options[53](index=53&type=chunk) [Directors' Interests in Shares, Underlying Shares, and Debentures](index=16&type=section&id=%E8%91%A3%E4%BA%8B%E6%96%BC%E8%82%A1%E4%BB%BD%E3%80%81%E7%9B%B8%E9%97%9C%E8%82%A1%E4%BB%BD%E5%8F%8A%E5%82%B5%E5%88%B8%E7%9A%84%E6%AC%8A%E7%9B%8A) Discloses the share and share option holdings of several directors in the company and associated corporations (e.g., COSCO SHIPPING Holdings, COSCO SHIPPING Development) as of June 30, 2024, with directors like Zhu Tao, Zhang Wei, and Huang Tianyou holding company shares, and some also holding A-shares, H-shares, or share options in associated corporations Directors' Long Positions in the Company's Shares (June 30, 2024) | Name of Director | Number of Shares Held | Percentage of Total Issued Shares | | :--- | :--- | :--- | | Mr. Zhu Tao | 8,000 | 0.0002% | | Mr. Zhang Wei | 30,000 | 0.001% | | Dr. Huang Tianyou | 1,499,601 | 0.040% | - Some directors also hold shares or share options in associated corporations, for instance, Mr. Zhang Wei holds COSCO SHIPPING Holdings A-shares, Mr. Zhu Tao holds COSCO SHIPPING Development H-shares and A-shares, and jointly holds COSCO SHIPPING Holdings share options with Mr. Zhang Wei[57](index=57&type=chunk)[58](index=58&type=chunk) [Substantial Interests in the Company's Share Capital](index=18&type=section&id=%E6%9C%AC%E5%85%AC%E5%8F%B8%E8%82%A1%E6%9C%AC%E4%B8%AD%E7%9A%84%E4%B8%BB%E8%A6%81%E6%AC%8A%E7%9B%8A) As of June 30, 2024, China COSCO Shipping Corporation Limited, through its subsidiaries, collectively held approximately 68.90% of the company's shares, making it the ultimate controlling shareholder Major Shareholder Holdings (June 30, 2024) | Name of Corporation | Capacity | Number of Shares (Long Position) | Percentage of Shareholding (%) | | :--- | :--- | :--- | :--- | | COSCO (Hong Kong) Investment Co., Ltd. | Beneficial Owner | 250,408,951 | 6.81 | | China Ocean Shipping (Group) Company Limited | Beneficial Owner and Interest of Controlled Corporation | 2,530,229,793 | 68.90 | | COSCO SHIPPING Holdings Co., Ltd. | Interest of Controlled Corporation | 2,530,229,793 | 68.90 | | China Ocean Shipping Company Limited | Interest of Controlled Corporation | 2,530,229,793 | 68.90 | | China COSCO Shipping Corporation Limited | Interest of Controlled Corporation | 2,530,229,793 | 68.90 | - The aforementioned shares represent the same block of shares, with the layered holding structure indicating China COSCO Shipping Corporation Limited as the ultimate controlling shareholder[60](index=60&type=chunk) [Corporate Governance and Other Information](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB%E5%8F%8A%E5%85%B6%E4%BB%96%E8%B3%87%E6%96%99) [Corporate Governance](index=19&type=section&id=%E4%BC%81%E6%A5%AD%E7%AE%A1%E6%B2%BB) The company is committed to maintaining high corporate governance standards; during the period, it largely complied with the Corporate Governance Code, with two deviations: the Chairman and CEO roles are held by the same person (Mr. Zhu Tao), and the former Chairman was unable to attend the 2024 AGM; the company believes existing internal controls provide sufficient checks and balances without affecting decision efficiency - The company complied with all code provisions of the Corporate Governance Code, with only two deviations[63](index=63&type=chunk) - Deviation one: The roles of Chairman and Chief Executive Officer are concurrently held by Mr. Zhu Tao, deviating from code provision C.2.1; the company believes its internal control system ensures checks and balances[63](index=63&type=chunk) - Deviation two: Former Chairman Mr. Yang Zhijian was unable to attend the 2024 Annual General Meeting, deviating from code provision F.2.2[64](index=64&type=chunk) [Investor Relations and Accolades](index=21&type=section&id=%E6%8A%95%E8%B3%87%E8%80%85%E9%97%9C%E4%BF%82%E8%88%87%E6%AE%8A%E6%A6%AE) The company highly values investor relations, maintaining close communication with the market through various channels like roadshows and conferences in H1 2024, engaging with over 120 investors and analysts; it received multiple international and industry awards, including "Best Port Operator" and "Best CEO in Asia," for its excellent operational management and corporate governance - The company maintained close contact with the market through various channels, engaging with over **120** investors and analysts in H1 2024, promoting a diversified shareholder base[73](index=73&type=chunk)[74](index=74&type=chunk) - In H1 2024, the company received multiple awards, including 'Best Port Operator' and 'Best Investor Relations Company' from International Business Magazine, and 'Best CEO in Asia' and 'Best Investor Relations Company Award' from Asian Corporate Governance Magazine[76](index=76&type=chunk)[77](index=77&type=chunk) [Corporate Sustainability](index=23&type=section&id=%E4%BC%81%E6%A5%AD%E5%8F%AF%E6%8C%81%E7%BA%8C%E7%99%BC%E5%B1%95) The company deeply cultivates sustainable development around five pillars: integrity and win-win, resilient future, agile innovation, caring for nature, and shared progress; key initiatives include building smart, efficient, green, and low-carbon terminals, promoting self-driven decarbonization (e.g., Lianyungang New Oriental Terminal selected as a national near-zero carbon pilot), and enhancing customer service and operational efficiency through technological innovation - The company is deeply committed to sustainable development, focusing on building smart, efficient, green, and low-carbon terminals to help construct a green shipping industry chain[79](index=79&type=chunk) - Lianyungang New Oriental Terminal was selected as one of the first batch of near-zero carbon pilot projects by China's Ministry of Transport, becoming one of five national near-zero carbon terminal pilots[81](index=81&type=chunk) - The company released the 'COSCO SHIPPING Ports Green and Low-Carbon Transformation and Development Plan' and held a technology innovation conference to accelerate digital intelligence and green low-carbon transformation[82](index=82&type=chunk) [Interim Financial Information](index=26&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99) [Unaudited Condensed Consolidated Financial Statements](index=26&type=section&id=%E6%9C%AA%E7%B6%93%E5%AF%A9%E6%A0%B8%E7%B0%A1%E6%98%8E%E7%B6%9C%E5%90%88%E8%B2%A1%E5%8B%99%E5%A0%B1%E8%A1%A8) As of June 30, 2024, the Group's total assets were $11.93 billion, total liabilities $5.03 billion, and total equity $6.90 billion, indicating a generally stable financial position; H1 revenue reached $710 million, up 3.0% year-on-year, but net profit attributable to owners decreased by 7.4% to $139 million; net cash inflow from operating activities was $178 million, with cash and cash equivalents at period-end totaling $977 million Condensed Consolidated Statement of Financial Position Summary (June 30, 2024) | Item | Amount (USD Thousand) | | :--- | :--- | | Total Assets | 11,927,245 | | Total Liabilities | 5,030,329 | | Total Equity | 6,896,916 | Condensed Consolidated Statement of Profit or Loss Summary (For the Six Months Ended June 30, 2024) | Item | Amount (USD Thousand) | | :--- | :--- | | Revenue | 709,811 | | Operating Profit | 120,586 | | Profit for the Period | 168,929 | | Profit Attributable to Equity Holders of the Company | 139,215 | Condensed Consolidated Statement of Cash Flows Summary (For the Six Months Ended June 30, 2024) | Item | Amount (USD Thousand) | | :--- | :--- | | Net Cash Generated from Operating Activities | 177,565 | | Net Cash Used in Investing Activities | (149,705) | | Net Cash Used in Financing Activities | (205,688) | | Cash and Cash Equivalents at End of Period | 977,218 | [Summary of Notes to Financial Information](index=34&type=section&id=%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E9%99%84%E8%A8%BB%E6%91%98%E8%A6%81) Notes to the financial statements detail key information such as accounting policies, segment information, and related party transactions; segment data shows terminal and related businesses as core revenue and profit sources, with Mainland China and Europe as primary revenue regions; related party transactions primarily involve terminal handling, leasing, and management services with fellow subsidiaries at agreed rates; post-period, the company signed an agreement to sell a 20% equity stake in Tianjin Company - Segment information indicates that terminal and related businesses contributed all revenue; geographically, Mainland China revenue was **$353 million**, and Europe revenue was **$318 million**, making them the two core markets[121](index=121&type=chunk)[125](index=125&type=chunk) - Significant related party transactions include providing terminal handling and storage services to fellow subsidiaries, generating **$199 million** in revenue, and paying **$32.37 million** in concession fees to fellow subsidiaries[156](index=156&type=chunk) - Post-balance sheet event: On August 29, 2024, the company agreed to sell a **20%** equity stake and shareholder loans in COSCO SHIPPING Ports (Tianjin) Co., Ltd. to OOCL for a total consideration of approximately **$49.29 million**; after the transaction, the company will retain an **80%** equity stake[161](index=161&type=chunk) [Review Report on Interim Financial Information](index=55&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) [Review Report on Interim Financial Information](index=55&type=section&id=%E4%B8%AD%E6%9C%9F%E8%B2%A1%E5%8B%99%E8%B3%87%E6%96%99%E7%9A%84%E5%AF%A9%E9%96%B1%E5%A0%B1%E5%91%8A) Independent auditor PricewaterhouseCoopers has reviewed this interim financial information in accordance with Hong Kong Review Engagements Standards; the conclusion is that nothing has come to their attention that causes them to believe the interim financial information is not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 34 'Interim Financial Reporting' - Independent auditor PricewaterhouseCoopers reviewed the interim financial information[163](index=163&type=chunk) - The review concluded that nothing came to their attention indicating the interim financial information was not prepared in all material respects in accordance with Hong Kong Accounting Standard 34[165](index=165&type=chunk)

Financial Performance - Revenue for the first half of 2024 increased by 3.0% to $709.8 million compared to $688.9 million in the same period of 2023[4] - Gross profit rose by 2.5% to $198.6 million, with a gross margin of 28.0%, slightly down from 28.1% in the previous year[4] - Profit attributable to equity holders decreased by 7.4% to $139.2 million, with basic earnings per share falling by 10.6% to 3.90 cents[4] - Operating profit for the first half of 2024 was $120.6 million, down from $126.5 million in the same period last year[9] - The company reported a profit of $168,929,000 for the six months ended June 30, 2024, compared to $181,857,000 for the same period in 2023, representing a decrease of approximately 7.9%[11] - Total comprehensive income for the period was $102,839,000, a significant improvement from a loss of $30,640,000 in the prior year[11] - The profit attributable to the company’s equity holders from the operating segment was $139,215,000, compared to $150,292,000 in the previous year, reflecting a decrease of approximately 7.3%[20] - The total profit from both controlling and non-controlling terminals for the first half of 2024 was $203,083,000, a decline of 5.4% from $214,706,000 in the same period of 2023[47] Throughput and Operations - Total throughput increased by 8.2% to 69,858,501 TEUs, with controlled terminal throughput up by 8.0% to 15,914,213 TEUs[5] - Equity throughput rose by 6.3% to 22,049,306 TEUs, with controlled terminal equity throughput increasing by 6.4%[5] - The total throughput in the China region increased by 9.5% to 53,335,822 TEUs, accounting for 76.3% of the group's total throughput[70] - The Yangtze River Delta region saw a significant increase in total throughput by 14.1% to 8,054,930 TEUs, with equity throughput rising by 18.3% to 2,311,450 TEUs[72] - The Southwest Coast region experienced a total throughput increase of 19.8% to 4,320,100 TEUs, driven by the RCEP policy benefits and growing trade with ASEAN[75] - The group’s non-controlling terminals' total throughput increased by 8.2% to 53,944,288 TEUs, representing 77.2% of the total throughput[69] Financial Position - Total assets as of June 30, 2024, were $11.93 billion, slightly down from $11.93 billion at the end of 2023[8] - Total equity increased to $6.90 billion, compared to $6.84 billion at the end of 2023[8] - Total liabilities decreased to $5.03 billion from $5.09 billion at the end of 2023[8] - The company’s net current liabilities stood at $53,609,000 as of June 30, 2024, with $754,026,000 in unused bank facilities and expected cash flows from operations, ensuring sufficient resources for upcoming obligations[13] - The company’s total liabilities decreased to $588,942 thousand as of June 30, 2024, from $577,427 thousand at the end of 2023, showing a reduction of 2.6%[30] Expenses and Income - Financial income increased to $16.2 million, while financial expenses rose to $83.9 million[9] - Current tax expenses for the first half of 2024 totaled $40,009 thousand, up from $32,976 thousand in 2023, representing an increase of 21.5%[35] - The sales cost for the first half of 2024 was $511,175,000, reflecting a 3.2% increase from $495,126,000 in the previous year[51] - Administrative expenses decreased by 2.2% to $80,345,000 in the first half of 2024, down from $82,139,000 in 2023[53] - Financial expenses rose to $83,891,000 in the first half of 2024, up 3.6% from $81,007,000 in 2023, attributed to increased interest rates[55] Strategic Initiatives - The company aims to enhance its global resource layout and optimize asset structure to support the integrated channel construction of China COSCO Shipping Group[78] - The company plans to deepen lean innovation operations and implement precise marketing to strengthen key hub port services[79] - The company is focusing on digital transformation, leveraging digital and AI technologies to improve operational efficiency and customer supply chain integration[79] - The company is advancing green port construction by upgrading energy structures and participating in green fuel supply chain development[79] - The company is committed to maintaining high corporate governance standards to enhance transparency and protect shareholder interests[83] Community and Governance - The company emphasizes community development through poverty alleviation, support for vulnerable groups, education, and environmental protection[101] - The company has established various committees, including an Audit Committee and a Remuneration Committee, to ensure effective governance and oversight[85][86] - The board of directors includes key members such as Chairman and Managing Director Zhu Tao, and other directors with diverse backgrounds[102] - The company is committed to providing diverse training and development opportunities to build a sustainable talent pipeline[101] Awards and Recognition - The company received multiple awards in 2024, including "Best Port Operator" and "Best Investor Relations" from various publications, reflecting its strong market recognition and governance standards[98] - The company actively participated in investor communication events, meeting over 120 investors and analysts from January to June 2024, enhancing relationships with existing shareholders and engaging potential investors[93]

Financial Performance - Total revenue for Q1 2024 was $332.7 million, a 1.4% increase from $328.0 million in Q1 2023[5] - Gross profit decreased by 2.6% to $87.6 million compared to $89.9 million in the same period last year[5] - Profit attributable to equity holders rose by 0.6% to $62.9 million, compared to $62.5 million in the previous year[5] - Basic earnings per share decreased by 3.3% to 1.76 cents from 1.82 cents in Q1 2023[5] - The company reported a net profit of $76.5 million for the quarter, down from $77.5 million in the same period last year[9] Throughput and Operations - Total throughput increased by 9.8% to 33,262,222 TEUs, up from 30,305,420 TEUs in Q1 2023[11] - The company’s equity throughput increased by 9.3% to 10,507,302 TEUs from 9,609,708 TEUs year-on-year[11] - Non-controlling terminal throughput increased by 9.3% to 25,839,142 TEUs, while controlling terminal throughput rose by 11.5% to 7,423,080 TEUs[12] - Total throughput in China increased by 11.4% year-on-year to 25,225,841 TEUs, accounting for 75.8% of the group's total throughput[13] - The equity throughput in the Bohai Rim region rose by 9.2% year-on-year to 3,077,242 TEUs, representing 29.3% of the group's equity throughput[14] - The Yangtze River Delta region's total throughput grew by 15.0% year-on-year to 3,833,054 TEUs, contributing 11.5% to the group's total throughput[15] - The Southeast Coast and other regions saw a significant increase in equity throughput by 27.6% year-on-year to 1,020,203 TEUs, accounting for 9.7% of the group's equity throughput[16] - The total throughput in the Pearl River Delta region increased by 9.3% year-on-year to 6,441,520 TEUs, making up 19.4% of the group's total throughput[17] - The Southwest Coast region's total throughput surged by 20.3% year-on-year to 1,939,800 TEUs, representing 5.8% of the group's total throughput[18] - Total throughput in overseas regions rose by 5.0% year-on-year to 8,036,381 TEUs, accounting for 24.2% of the group's total throughput[19] - The throughput at the Bohai Rim increased by 10.0% to 11,610,844 TEUs from 10,554,580 TEUs year-over-year[23] - Qingdao Port International Co., Ltd. reported a throughput of 7,670,000 TEUs, up 11.5% from 6,880,000 TEUs in the previous year[23] - The throughput at the Yangtze River Delta rose by 15.0% to 3,833,054 TEUs compared to 3,333,179 TEUs in the same quarter of 2023[23] - The total throughput in the Pearl River Delta was 6,441,520 TEUs, reflecting a 9.3% increase from 5,891,113 TEUs year-over-year[23] - The throughput at the South China region increased by 20.3% to 1,939,800 TEUs from 1,611,900 TEUs in the same period last year[23] - The overseas terminals reported a throughput of 8,036,381 TEUs, which is a 5.0% increase from 7,654,634 TEUs in the previous year[23] - The throughput at CSP Abu Dhabi Terminal L.L.C. surged by 52.6% to 431,217 TEUs from 282,597 TEUs year-over-year[23] Cargo and Trade - The total bulk cargo throughput for the three months ending March 31, 2024, was 115,693,626 tons, an increase of 3.3% from 111,954,353 tons in the same period of 2023[24] - The total automobile throughput decreased by 8.5% to 158,620 units from 173,430 units year-over-year[24] - In Q1 2024, China's total import and export trade value reached RMB 10.2 trillion, a year-on-year increase of 5%[20] Strategic Initiatives - The company aims to enhance global resource allocation and invest in emerging markets and key supply chain resources[21] - The company plans to accelerate the construction of the Peru Chancay Port project and strengthen marketing efforts at key hub ports like Piraeus and CSP Abu Dhabi[21] Assets and Liabilities - Total assets as of March 31, 2024, were $11.84 billion, a slight decrease from $11.93 billion at the end of 2023[7] - Total liabilities decreased to $5.03 billion from $5.09 billion year-on-year[8]

智通财经APP讯，中远海运港口(01199)发布2023年度业绩，收入约14.54亿美元，同比增长0.9%;公司股权持有人应佔利润3.25亿美元，同比增长5.8%;每股盈利9.33美仙;拟派发第二次中期股息每股1.988美仙。 2023年，该集团总吞吐量同比上升4.4%至1.36亿标准箱(2022年：1.3亿标准箱)。其中，集团控股码头公司的总吞吐量同比下降2.7%至3076.21万标准箱(2022年：3162.77万标准箱)，占集团总吞吐量的22.7%;非控股码头公司的总吞吐量同比上升6.7%至1.05亿标准箱(2022年：9847.9340标准箱)，佔本集团总吞吐量的77.3%。 年内，该集团权益吞吐量同比上升3.1%至4338.12万标准箱(2022年：4206.91万标准箱)。其中控股码头公司权益吞吐量同比上升0.7%至1901.08万标准箱(2022年：1886.98万标准箱)，佔比43.8%;非控股码头公司的权益吞吐量同比上升5.0%至2437.04万标准箱(2022年：2319.92万标准箱)，佔比56.2%。 ...

Financial Performance - Company revenue increased by 0.9% year-on-year to $1,454,353,000; profit attributable to equity holders rose by 5.8% to $324,557,000[3] - Gross profit decreased by 2.1% to $420,900,000, while the profit from joint ventures and associates fell by 3.3% to $297,900,000[3] - Basic earnings per share increased by 2.3% to 9.33 cents; the dividend payout ratio remained at 40%[3] - The net profit for the year was $394,280 thousand, up from $390,744 thousand in 2022, indicating a growth of approximately 0.4%[8] - The company reported a total comprehensive income of $366,204 thousand for 2023, a significant recovery from a loss of $204,622 thousand in 2022[8] - Operating profit for 2023 was $274,816 thousand, compared to $261,350 thousand in 2022, reflecting an increase of about 5.2%[7] - The profit attributable to the company's equity holders for 2023 was $324,557,000, an increase of 5.8% compared to $306,633,000 in 2022[48] - The total dividend paid for 2023 was $131,898,000, slightly up from $123,742,000 in 2022[44] Assets and Liabilities - Total assets as of December 31, 2023, amounted to $11,931,881,000, up from $11,326,353,000 in the previous year[6] - Total liabilities increased to $5,089,356,000 from $4,687,180,000 year-on-year[6] - The company’s net current liabilities stood at $69,006 thousand as of December 31, 2023, with sufficient resources to meet upcoming obligations[9] - Total non-current assets rose to $10,066,519 thousand in 2023, up from $9,566,393 thousand in 2022, reflecting an increase of 5.2%[33] - The group reported a total outstanding debt of $3,234,631,000 as of December 31, 2023, up from $2,908,623,000 in 2022[59] Cash Flow and Financial Expenses - Cash and cash equivalents stood at $1,162,926,000, compared to $1,069,317,000 in the previous year[5] - The group's net cash inflow from operating activities for 2023 was $482,447,000, an increase from $467,638,000 in 2022[58] - Financial expenses increased to $(171,189) thousand in 2023 from $(126,387) thousand in 2022, representing a rise of approximately 35.4%[7] - Net financial expenses for 2023 amounted to $143,191,000, up from $109,265,000 in 2022[40] Revenue and Throughput - Total throughput increased by 4.4% year-on-year to 135,808,554 TEUs; equity throughput rose by 3.1% to 43,381,201 TEUs[2] - Revenue for the operational segment was reported at $1,454,353,000, with a profit of $431,601,000 attributable to equity holders[28] - The total throughput for the group as of December 31, 2023, was 135,808,554 TEUs, representing a 4.4% increase from 130,107,074 TEUs in 2022[76] Investments and Acquisitions - Non-current asset additions totaled $431,477,000, indicating ongoing investment in property, plant, and equipment[28] - The group acquired a 30% stake in Xiamen Yuanhai Terminal for approximately $120,997,000, making it a wholly-owned subsidiary[58] - The acquisition of Xiamen Ocean Supply Chain Development Co., Ltd. contributed $31,351,000 in revenue for 2023[51] Market and Operational Strategy - The company plans to continue expanding its market presence and investing in new technologies[2] - The company aims to enhance its international layout across four dimensions: efficiency, network, assets, and personnel, to transform into a global operator[75] - The company plans to actively pursue global layout opportunities, particularly in emerging markets represented by RCEP, and optimize domestic port resource integration[75] Sustainability and Corporate Governance - The company emphasizes sustainable development, focusing on energy conservation and carbon reduction, and aims for carbon neutrality[86] - The company has fully complied with the corporate governance code as per the Hong Kong Stock Exchange listing rules as of December 31, 2023[78] - The company actively participates in ecological protection and resource conservation initiatives to mitigate impacts on biodiversity[90] Awards and Recognition - In 2023, the company received multiple awards, including the "Best Port Operator" and "Best Corporate Social Responsibility Company" from International Business magazine[84] - The company has been recognized for its corporate governance and transparency efforts, receiving several accolades in 2024[84]

[Report Highlights](index=1&type=section&id=Report%20Highlights) The company announced unaudited condensed consolidated results for Q3 and the first nine months of 2023, showing increased total throughput and revenue in Q3, but a year-on-year decrease in profit attributable to equity holders [Key Performance Indicators for Q3 and First Nine Months of 2023](index=1&type=section&id=Summary%20of%20Q3%20and%209M%20Key%20Performance%20Indicators) The company announced unaudited condensed consolidated results for Q3 and the first nine months of 2023, showing increased total throughput and revenue in Q3, but a year-on-year decrease in profit attributable to equity holders Key Performance Indicators for Q3 2023 | Indicator | Q3 2023 | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput (TEUs) | 35,603,127 | +4.1 | | Equity Throughput (TEUs) | 11,407,984 | +2.7 | | Company Revenue (USD) | 358,902,000 | +2.7 | | Profit Attributable to Equity Holders of the Company (USD) | 83,312,000 | -4.0 | Key Performance Indicators for First Nine Months of 2023 | Indicator | First 9 Months 2023 | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput (TEUs) | 100,175,999 | +2.8 | | Equity Throughput (TEUs) | 32,159,349 | +1.8 | | Company Revenue (USD) | 1,047,775,000 | -0.6 | | Profit Attributable to Equity Holders of the Company (USD) | 233,604,000 | -11.7 | [Financial Review](index=2&type=section&id=Financial%20Review) The financial review covers Q3 and 9M performance, balance sheet, income statement, and notes, highlighting revenue, profit, and asset changes [Financial Summary for Q3 2023](index=2&type=section&id=Financial%20Summary%20for%20Q3%202023) The Group's Q3 2023 revenue increased by 2.7% year-on-year, but gross profit slightly decreased due to faster growth in cost of sales, leading to a decline in both profit attributable to equity holders and basic earnings per share Q3 2023 Financial Data | Indicator | Q3 2023 (Million USD) | Q3 2022 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 358.9 | 349.4 | +2.7 | | Cost of Sales | 258.0 | 247.1 | +4.4 | | Gross Profit | 100.9 | 102.3 | -1.4 | | Share of Profits of Joint Ventures and Associates | 83.4 | 81.3 | +2.6 | | Profit Attributable to Equity Holders of the Company | 83.3 | 86.8 | -4.0 | | Basic Earnings Per Share (US Cents) | 2.38 | 2.57 | -7.4 | - Profit attributable to equity holders of the Company for Q3 2022 has been **retrospectively adjusted** due to the adoption of HKAS 12 Amendments[3](index=3&type=chunk) [Financial Summary for First 9 Months of 2023](index=2&type=section&id=Financial%20Summary%20for%20First%209%20Months%20of%202023) The Group's revenue for the first nine months of 2023 slightly decreased by 0.6% year-on-year, with minor declines in gross profit and share of profits of joint ventures and associates, resulting in a significant decrease in both profit attributable to equity holders and basic earnings per share Financial Data for First 9 Months of 2023 | Indicator | First 9 Months 2023 (Million USD) | First 9 Months 2022 (Million USD) | Change (%) | | :--- | :--- | :--- | :--- | | Revenue | 1,047.8 | 1,054.0 | -0.6 | | Cost of Sales | 753.2 | 754.0 | -0.1 | | Gross Profit | 294.6 | 300.0 | -1.8 | | Share of Profits of Joint Ventures and Associates | 237.1 | 241.5 | -1.8 | | Profit Attributable to Equity Holders of the Company | 233.6 | 264.5 | -11.7 | | Basic Earnings Per Share (US Cents) | 6.75 | 7.91 | -14.6 | - Profit attributable to equity holders of the Company for the first nine months of 2022 has been **retrospectively adjusted** due to the adoption of HKAS 12 Amendments[4](index=4&type=chunk) [Unaudited Condensed Consolidated Balance Sheet](index=3&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheet) As of September 30, 2023, the Group's total assets slightly increased compared to the end of 2022, with a significant rise in investment properties within non-current assets, while total equity and non-controlling interests decreased Key Balance Sheet Data (Thousand USD) | Indicator | As of September 30, 2023 (Thousand USD) | As of December 31, 2022 (Restated) (Thousand USD) | | :--- | :--- | :--- | | Total Assets | 11,388,820 | 11,326,353 | | Total Equity | 6,546,700 | 6,639,173 | | Total Liabilities | 4,842,120 | 4,687,180 | | Investment Properties | 191,634 | 9,535 | | Long-term Borrowings | 2,263,399 | 2,121,488 | | Short-term Loans | 205,962 | 321,888 | [Unaudited Condensed Consolidated Income Statement](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Income%20Statement) The Group's income statement performance for Q3 and the first nine months of 2023 shows that despite increased finance income, higher finance costs and administrative expenses, coupled with a decrease in share of profits of joint ventures and associates, collectively led to a reduction in profit for the period and profit attributable to equity holders of the Company Key Condensed Consolidated Income Statement Data (Thousand USD) | Indicator | Q3 2023 (Thousand USD) | Q3 2022 (Restated) (Thousand USD) | 9M 2023 (Thousand USD) | 9M 2022 (Restated) (Thousand USD) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 358,902 | 349,353 | 1,047,775 | 1,053,975 | | Gross Profit | 100,862 | 102,303 | 294,609 | 299,992 | | Operating Profit | 69,860 | 68,101 | 196,344 | 204,044 | | Finance Income | 7,800 | 5,455 | 19,523 | 10,445 | | Finance Costs | (43,345) | (31,764) | (124,352) | (89,298) | | Share of Profits of Joint Ventures | 16,198 | 20,088 | 48,025 | 58,933 | | Share of Profits of Associates | 67,238 | 61,228 | 189,053 | 182,604 | | Profit for the Period | 98,384 | 104,196 | 280,241 | 318,039 | | Profit Attributable to Equity Holders of the Company | 83,312 | 86,824 | 233,604 | 264,500 | [Notes to the Financial Statements](index=6&type=section&id=Notes) This section explains the calculation methods for basic and diluted earnings per share, notes the retrospective adjustment of 2022 data due to the adoption of HKAS 12 Amendments, and emphasizes that all financial data are unaudited - Basic earnings per share are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of ordinary shares outstanding during the period[8](index=8&type=chunk) - For the three and nine months ended September 30, 2023, stock options granted but not yet exercised had **no dilutive effect** on the calculation of earnings per share, thus diluted earnings per share were the same as basic earnings per share for the period[8](index=8&type=chunk) - The Group made necessary **retrospective adjustments** for the cumulative effect due to the adoption of HKAS 12 Amendments "Income Taxes – Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction"[8](index=8&type=chunk) [Business Review](index=7&type=section&id=Business%20Review) The business review details overall and regional throughput performance, highlighting growth drivers and regional variations across China and overseas [Overall Throughput Performance](index=7&type=section&id=Overall%20Throughput%20Performance) The Group achieved year-on-year growth in both total throughput and equity throughput for Q3 and the first nine months of 2023, primarily driven by increased throughput from non-controlled terminals Q3 2023 Throughput Data (TEUs) | Indicator | Q3 2023 (TEUs) | Q3 2022 (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | | Total Throughput | 35,603,127 | 34,203,498 | +4.1 | | Total Throughput of Controlled Terminals | 8,242,228 | 8,535,948 | -3.4 | | Total Throughput of Non-controlled Terminals | 27,360,899 | 25,667,550 | +6.6 | | Equity Throughput | 11,407,984 | 11,104,665 | +2.7 | First 9 Months 2023 Throughput Data (TEUs) | Indicator | First 9 Months 2023 (TEUs) | First 9 Months 2022 (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | | Total Throughput | 100,175,999 | 97,413,828 | +2.8 | | Total Throughput of Controlled Terminals | 22,973,718 | 24,215,464 | -5.1 | | Total Throughput of Non-controlled Terminals | 77,202,281 | 73,198,364 | +5.5 | | Equity Throughput | 32,159,349 | 31,598,677 | +1.8 | [Throughput Performance by Region](index=8&type=section&id=Throughput%20Performance%20by%20Region) The Group's throughput performance varied across China and overseas regions, with China experiencing growth in both total and equity throughput, while overseas regions saw total throughput growth but a slight decline in equity throughput, reflecting diverse trends influenced by various factors in sub-regions - For the three months ended September 30, 2023, total throughput of China terminals increased by **4.3% year-on-year to 27,133,886 TEUs**, accounting for **76.2%** of the Group's total throughput[12](index=12&type=chunk) - For the three months ended September 30, 2023, total throughput of overseas regions increased by **3.4% year-on-year to 8,469,241 TEUs**, accounting for **23.8%** of the Group's total throughput[18](index=18&type=chunk) [China Region](index=8&type=section&id=China) Throughput performance in the China region showed regional divergence, with strong growth in the Bohai Rim and Southwest Coast regions, declines in the Yangtze River Delta and Southeast Coast regions, and slight growth in the Pearl River Delta region Q3 2023 China Region Throughput (TEUs) | Region | Total Throughput (TEUs) | YoY Change (%) | Equity Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | :--- | :--- | | China Terminals | 27,133,886 | +4.3 | 8,124,119 | +4.4 | [Bohai Rim Region](index=8&type=section&id=Bohai%20Rim) The Bohai Rim region achieved significant growth in both total and equity throughput in Q3 2023, primarily driven by new shipping routes at Dalian Container Terminal Co., Ltd Q3 2023 Bohai Rim Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 12,261,670 | +7.8 | | Equity Throughput | 3,362,406 | +5.2 | | Total Throughput of Dalian Container Terminal Co., Ltd. | 1,202,732 | +8.8 | [Yangtze River Delta Region](index=8&type=section&id=Yangtze%20River%20Delta) The Yangtze River Delta region experienced a decline in both total and equity throughput in Q3 2023, with Nantong Tonghai Port Co., Ltd. showing a significant decrease in throughput Q3 2023 Yangtze River Delta Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 3,770,354 | -4.8 | | Equity Throughput | 1,061,308 | -7.1 | | Total Throughput of Nantong Tonghai Port Co., Ltd. | 347,155 | -37.7 | [Southeast Coast and Other Regions](index=8&type=section&id=Southeast%20Coast%20and%20Other) The Southeast Coast and Other Regions saw a slight decrease in total throughput in Q3 2023, but equity throughput significantly increased due to the acquisition of additional equity in Xiamen Ocean Gate Container Terminal Co., Ltd., which also benefited from accelerated foreign trade Q3 2023 Southeast Coast and Other Regions Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 1,569,452 | -1.3 | | Equity Throughput | 1,150,610 | +27.2 | | Total Throughput of Xiamen Ocean Gate Container Terminal Co., Ltd. | 743,665 | +13.2 | - The increase in equity throughput was due to the Company's acquisition of an additional **30% equity** in Xiamen Ocean Gate Container Terminal Co., Ltd. in the first half of the year, now holding **100% equity** in Xiamen Ocean Gate Terminal[15](index=15&type=chunk) [Pearl River Delta Region](index=8&type=section&id=Pearl%20River%20Delta) The Pearl River Delta region saw a slight increase in total throughput in Q3 2023, with Yantian International Container Terminals Co., Ltd. benefiting from the recovery of European and American shipping routes Q3 2023 Pearl River Delta Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 7,390,310 | +1.6 | | Equity Throughput | 2,064,230 | -0.8 | | Total Throughput of Yantian International Container Terminals Co., Ltd. | 3,790,624 | +5.2 | [Southwest Coast Region](index=9&type=section&id=Southwest%20Coast) The Southwest Coast region achieved rapid growth in both total and equity throughput in Q3 2023, primarily due to increased trade between China's central and western provinces and ASEAN following the RCEP's entry into force Q3 2023 Southwest Coast Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 2,142,100 | +18.0 | | Equity Throughput | 485,565 | +6.5 | - The rapid increase in throughput was mainly due to the continuous rise in trade volume between China's central and western provinces and ASEAN after the entry into force of the **Regional Comprehensive Economic Partnership (RCEP)**[17](index=17&type=chunk) [Overseas Region](index=9&type=section&id=Overseas%20Region) The Overseas region experienced an increase in total throughput but a slight decrease in equity throughput in Q3 2023, with Piraeus Container Terminal and CSP Abu Dhabi Terminal performing well, benefiting from synergy effects and marketing efforts, respectively Q3 2023 Overseas Region Throughput (TEUs) | Indicator | Throughput (TEUs) | YoY Change (%) | | :--- | :--- | :--- | | Total Throughput | 8,469,241 | +3.4 | | Equity Throughput | 3,283,865 | -1.3 | | Total Throughput of Piraeus Container Terminal S.A. | 1,194,519 | +5.6 | | Total Throughput of CSP Abu Dhabi Terminal L.L.C. | 335,247 | +22.6 | - Piraeus Container Terminal S.A. (Piraeus Terminal) continuously strengthened its **synergy effects** with the OCEAN Alliance fleet[18](index=18&type=chunk) - CSP Abu Dhabi Terminal L.L.C. (CSP Abu Dhabi Terminal) actively strengthened its **marketing efforts** and enhanced feeder marketing[18](index=18&type=chunk) [Detailed Terminal Throughput Data](index=11&type=section&id=The%20Group%27s%20Throughput%20for%20the%203%20and%209%20Months%20Ended%20September%2030%2C%202023) This section provides detailed throughput data for the Group's terminals for Q3 and the first nine months of 2023, including containers, bulk cargo, automobiles, and reefer pallets, with relevant notes The Group's Throughput for the 3 and 9 Months Ended September 30, 2023 (TEUs) | Region/Terminal | 3 Months Ended September 30, 2023 (TEUs) | Change (%) | 9 Months Ended September 30, 2023 (TEUs) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Bohai Rim | 12,261,670 | +7.8 | 34,776,678 | +8.2 | | Yangtze River Delta | 3,770,354 | -4.8 | 10,829,598 | +3.7 | | Southeast Coast and Other | 1,569,452 | -1.3 | 4,347,151 | -10.8 | | Pearl River Delta | 7,390,310 | +1.6 | 20,134,625 | -4.7 | | Southwest Coast | 2,142,100 | +18.0 | 5,749,600 | +15.4 | | Overseas | 8,469,241 | +3.4 | 24,338,347 | +2.1 | | Total | 35,603,127 | +4.1 | 100,175,999 | +2.8 | - For the three and nine months ended September 30, 2023, excluding bulk cargo throughput from Beibu Gulf Port Co., Ltd., total bulk cargo throughput decreased by **1.2%** and **0.4%**, respectively[21](index=21&type=chunk) - For the three and nine months ended September 30, 2023, total automobile throughput increased by **0.3%** and **0.7%**, respectively[21](index=21&type=chunk) [Outlook](index=10&type=section&id=Outlook) The outlook outlines the Group's strategic focus on lean operations, marketing, cost reduction, and optimizing financing, while exploring new markets and leveraging technology for smart port development [Outlook Summary](index=10&type=section&id=Outlook%20Summary) Facing challenges of global economic slowdown and geopolitical tensions, COSCO SHIPPING Ports will focus on "lean operations," strengthen marketing, improve operational quality, and reduce funding costs through efficiency improvements and optimized financing structures. Guided by the "14th Five-Year Plan," the company will actively expand into emerging markets, seize opportunities from new energy product exports, and lead smart port construction with technology to enhance integrated supply chain operational efficiency - The global economy is in a pattern of overall slow growth, while China's Manufacturing Purchasing Managers' Index (PMI) has returned to the expansion range, with the economic recovery trend continuously consolidating[19](index=19&type=chunk) - The Group will continue to focus on **"lean operations,"** strengthen business marketing, and improve the quality of terminal operations and profitability; it will solidly advance **cost reduction and efficiency improvement**, focusing on per-TEU operating costs, implementing refined cost control, continuously broadening financing channels, optimizing financing structure, and reducing funding costs[19](index=19&type=chunk) - Guided by the **"14th Five-Year Plan"**, the Group will continue to explore investment and development opportunities in key hub ports in emerging, regional, and third-country markets; it will seize new growth opportunities brought by new energy product exports for port supply chain services, focusing on building digital supply chain services; and it will promote **smart port construction** to enhance the automation and intelligence levels of terminals[19](index=19&type=chunk) [Cautionary Statement and Board Information](index=13&type=section&id=Cautionary%20Statement%20and%20Board%20Information) This section includes a cautionary statement advising investors against over-reliance on unaudited data and to seek professional advice, along with a list of the company's board members [Summary of Cautionary Statement and Board Information](index=13&type=section&id=Cautionary%20Statement%20and%20Board%20Information%20Summary) This announcement reminds shareholders and potential investors that the data contained herein is unaudited and should not be unduly relied upon, advising caution and professional consultation when dealing in the company's shares, and also lists the company's board members - The data contained in this announcement is **unaudited**, and investors should avoid relying on the financial and business performance for the three and nine months ended September 30, 2023[22](index=22&type=chunk) - Shareholders and potential investors of the Company should exercise **caution** when dealing in the Company's shares and should consult professional advisors if they have any doubts about their personal investment situation[22](index=22&type=chunk) - The Board of Directors includes Mr. Yang Zhijian (Chairman), Mr. Zhu Tao (Managing Director), other executive directors, non-executive directors, and independent non-executive directors[22](index=22&type=chunk)

Financial Performance - Total revenue for the first half of 2023 was $688.9 million, a decrease of 2.2% compared to $704.6 million in the same period of 2022[9]. - The profit attributable to equity holders decreased by 15.4% to $150.3 million, down from $177.7 million in the first half of 2022[9]. - The group's profit attributable to equity holders for the first half of 2023 was $150,292,000, a decrease of 15.4% from $177,676,000 in the same period last year[26]. - Total profit from controlling and non-controlling terminals in the first half of 2023 was $214,706,000, a decrease of 2.2% compared to $219,477,000 in the same period of 2022[27]. - Operating profit decreased to $126,484 thousand from $135,943 thousand, indicating a decline of 6.5% year-over-year[93]. - The company reported a profit of $177,676,000 for the six months ended June 30, 2023, compared to $213,843,000 in the previous period, marking a decrease of about 16.9%[101]. - The company reported a basic and diluted earnings per share of 4.36 cents, down from 5.34 cents in the previous year[93]. - The interim dividend declared for the six months ended June 30, 2023, was 1.744 cents per share, compared to 2.128 cents per share in 2022, a reduction of 18.1%[165]. Throughput and Operational Metrics - The total throughput increased by 2.2% to 64,572,872 TEUs in the first half of 2023, compared to 63,210,330 TEUs in the same period of 2022[10]. - The throughput of non-controlling terminals increased by 4.9% to 49,841,382 TEUs, while the throughput of controlling terminals decreased by 6.0% to 14,731,490 TEUs[10]. - The equity throughput rose by 1.3% to 20,751,365 TEUs, with non-controlling terminals contributing 56.3% of this total[11]. - In the Bohai Rim region, total throughput increased by 8.4% to 22,515,008 TEUs, making it the largest contributing area to the group's total throughput[15]. - The Yangtze River Delta region saw an 8.9% increase in total throughput to 7,059,244 TEUs, driven by economic recovery[16]. - Total throughput in the Southeast Coast and other regions decreased by 15.3% to 2,777,699 TEUs compared to 3,280,185 TEUs in the same period last year[17]. - Total throughput in the Pearl River Delta region decreased by 8.1% to 12,744,315 TEUs from 13,866,357 TEUs year-on-year[18]. - Total throughput in the Southwest Coast region increased by 14.0% to 3,607,500 TEUs, making it the fastest-growing area in the group's total throughput[19]. - Total throughput in overseas regions increased by 1.4% to 15,869,106 TEUs, maintaining stability and accounting for 24.6% of the group's total throughput[20]. Financial Position and Liabilities - The total outstanding borrowings as of June 30, 2023, were $2,981,622,000, an increase from $2,908,623,000 as of December 31, 2022[39]. - The net debt to equity ratio (excluding lease liabilities) increased to 30.9% as of June 30, 2023, compared to 27.0% on December 31, 2022[40]. - The interest coverage ratio decreased to 3.6 times as of June 30, 2023, down from 5.2 times in the same period last year[40]. - The group’s total borrowings amounted to $2,981,622,000, with secured borrowings at $975,033,000 (32.7%) and unsecured borrowings at $2,006,589,000 (67.3%) as of June 30, 2023[41]. - Total liabilities increased to $4,805,285 thousand from $4,687,180 thousand, representing a rise of 2.5%[91]. - The company’s total liabilities as of June 30, 2023, were $2,227,735,000, an increase from $2,121,488,000 at the end of 2022, reflecting a growth of 5.0%[9][150]. Expenses and Cash Flow - Administrative expenses increased by 14.7% to $82,139,000 in the first half of 2023, compared to $71,632,000 in the same period of 2022, mainly due to increased costs related to Xiamen Haitou Supply Chain[32]. - Financial expenses rose by 40.8% to $81,007,000 in the first half of 2023, compared to $57,534,000 in the same period of 2022, attributed to rising interest rates on USD and EUR loans[34]. - Cash flow from operating activities was $214,908,000 in the first half of 2023, slightly down from $218,531,000 in the same period of 2022[38]. - The net cash flow from operating activities for the six months ended June 30, 2023, was $214,908,000, compared to $218,531,000 for the same period in 2022, indicating a decrease of about 1.5%[103]. - The company paid dividends of $13,088,000 to equity holders during the first half of 2023, down from $22,701,000 in the same period of 2022, reflecting a decrease of about 42.5%[105]. Strategic Initiatives and Future Outlook - The company aims to enhance operational efficiency and strengthen partnerships with port operators and shipping alliances to maximize value[8]. - The company plans to leverage its global network to improve service capabilities and achieve synergistic effects across its operations[8]. - The company aims to enhance its global port resource layout and capitalize on opportunities in emerging markets and regional markets[46]. - The company plans to accelerate its digital transformation and integrate green low-carbon initiatives into its operational management[47]. - The group will focus on "lean operations" to strengthen business marketing efforts and explore new shipping routes[47]. - The company is actively promoting the application of new energy and clean energy at its terminals to achieve carbon peak and carbon neutrality goals[83]. - The company is collaborating with business partners to create a 5G smart port demonstration area, enhancing digital service levels through technologies like AI and blockchain[84]. - The company aims to solidify its high-quality development and accelerate its efforts to become a world-class port operator despite global economic uncertainties[80]. Governance and Compliance - The company has fully complied with the Corporate Governance Code during the six months ending June 30, 2023, ensuring high levels of transparency and protection for shareholders[67]. - The company’s board of directors includes various committees, such as the Audit Committee, which reviews major accounting policies and financial data for the six months ending June 30, 2023[68]. - The company’s directors confirmed compliance with the required standards for trading the company’s securities during the six months ending June 30, 2023[72]. - The company is committed to maintaining high standards of financial reporting and governance, as evidenced by the involvement of independent auditors[184]. Acquisitions and Investments - The acquisition of a 56% stake in Xiamen Haitou Supply Chain Development Co., Ltd. was completed for approximately $94,410,000, with net cash outflow of $79,718,000 after accounting for cash acquired[175]. - The company acquired a 24.99% stake in Hamburger Hafen und Logistik Aktiengesellschaft for approximately $72,051,000, effective June 20, 2023[178]. - Additional 30% stake in Xiamen Yuanhai Container Terminal Co., Ltd. was purchased for approximately $124,704,000, completed on February 28, 2023[179].