Financial Performance - Net profit attributable to shareholders was CNY 3.98 billion, representing a significant increase of 277.40% year-on-year[5]. - Operating revenue for the first nine months was CNY 14.21 billion, up 8.59% from the same period last year[5]. - Basic earnings per share rose to CNY 0.59, a 227.78% increase compared to the previous year[6]. - The company's consolidated revenue for the reporting period was RMB 14.205 billion, an increase of 8.59% year-on-year, with total profit of RMB 4.018 billion, up 262.46% year-on-year, and net profit of RMB 3.993 billion, an increase of 274% year-on-year[18]. - Excluding non-recurring government subsidies, the net profit attributable to shareholders for the first three quarters was RMB 3.966 billion, a significant increase of 481% year-on-year[18]. - The net profit for the first three quarters of 2020 was ¥595,807,767.72, down from ¥1,228,531,353.35 in the same period of 2019, a decline of approximately 51.5%[29]. - The net profit for Q3 2020 was CNY 10,178,161.58, compared to a net loss of CNY 9,818,080.00 in the same period last year[36]. Assets and Liabilities - Total assets at the end of the reporting period reached CNY 63.45 billion, an increase of 2.23% compared to the end of the previous year[5]. - Long-term borrowings increased by 27.85% to CNY 2,276,511.56 million, mainly due to new bank loans for equity acquisitions[14]. - Total liabilities reached ¥35,332,010,879.59, up from ¥34,318,046,549.82, reflecting an increase of about 2.95%[81]. - Total current liabilities include accounts payable of ¥1,969,200,778.95 and other payables of ¥5,029,826,098.09[50]. - The company reported total current assets of RMB 17.206 billion as of September 30, 2020, an increase from RMB 14.092 billion at the end of 2019[79]. Cash Flow - Net cash flow from operating activities increased by 81.50% year-on-year, totaling CNY 5.78 billion[5]. - Cash inflow from operating activities totaled CNY 15,208,450,178.90, a decrease from CNY 15,995,655,501.72 in the previous year[38]. - The net cash flow from investing activities was CNY -1,996,966,461.84, an improvement from CNY -3,103,246,775.92 in the previous year[99]. - Cash inflow from financing activities amounted to CNY 9,014,759,509.69, an increase from CNY 6,782,249,199.01 in the previous year[44]. Shareholder Information - The total number of shareholders reached 181,075, indicating a broad base of investor interest[11]. - The largest shareholder, China Merchants Shipping Company, holds 54.39% of the shares, reflecting strong institutional support[11]. Acquisitions and Investments - The company completed the acquisition of 100% equity in DS, MP, and SSML companies, enhancing its operational capabilities[6]. - The acquisition of a 70% stake in China Merchants Energy Trading Co., Ltd. was finalized for USD 16 million, further expanding the company's market presence[6]. - The company completed the acquisition of 100% equity in four companies and 70% equity in CMET, which has been consolidated into the financial statements[19]. Operational Efficiency - The company is focused on market expansion and leveraging its global fleet advantages to enhance operational efficiency and customer acquisition[18]. - Management expenses rose by 28.16% to CNY 49,335.06 million, reflecting increased operational costs due to fleet expansion[14]. - The company reported a significant increase in retained earnings and undistributed profits due to the consolidation of newly acquired companies[20]. Research and Development - The company plans to continue investing in R&D to enhance product offerings and market competitiveness[31]. - R&D expenses for Q3 2020 were ¥402,209.89, compared to ¥244,597.12 in Q3 2019, indicating a growth of approximately 64.4%[31].

公司代码：601872 公司简称：招商轮船 招商局能源运输股份有限公司 2020 年半年度报告 2020 年半年度报告 重要提示 一、 本公司董事会、监事会及董事、监事、高级管理人员保证半年度报告内容的真实、准确、完 整，不存在虚假记载、误导性陈述或重大遗漏，并承担个别和连带的法律责任。 二、 公司全体董事出席董事会会议。 三、 本半年度报告未经审计。 四、 公司负责人谢春林、 主管会计工作负责人吕胜洲 及 会计机构负责人（会计主管人员） 翟文峰声明：保证半年度报告中财务报告的真实、准确、完整。 五、 经董事会审议的报告期利润分配预案或公积金转增股本预案 无 六、 前瞻性陈述的风险声明 √适用 □不适用 本报告所涉及的公司战略、规划、计划、市场展望等前瞻性描述，不构成对公司股东、潜在投资 者以及其他报告使用者的实质承诺，敬请投资者注意投资风险。 七、 是否存在被控股股东及其关联方非经营性占用资金情况 否 八、 是否存在违反规定决策程序对外提供担保的情况？ 否 九、 重大风险提示 本报告已经对行业、市场等风险因素进行阐述，敬请投资者查阅相关章节内容。 十、 其他 □适用 √不适用 2 / 233 2020 年半 ...

Financial Performance - The company's operating revenue for 2019 was CNY 14,556,413,048.37, representing a 33.17% increase compared to CNY 10,931,097,409.67 in 2018[18]. - The net profit attributable to shareholders for 2019 was CNY 1,612,975,361.52, up 38.22% from CNY 1,166,993,927.15 in 2018[18]. - The net cash flow from operating activities for 2019 was CNY 4,624,005,012.93, a 12.17% increase from CNY 4,122,254,821.11 in 2018[18]. - The company's total assets as of the end of 2019 were CNY 54,817,643,675.14, a 9.73% increase from CNY 49,955,553,366.07 at the end of 2018[18]. - The basic earnings per share for 2019 was CNY 0.27, reflecting a 42.11% increase from CNY 0.19 in 2018[19]. - The weighted average return on equity for 2019 was 7.68%, an increase of 1.28 percentage points from 6.4% in 2018[19]. - The company's total net profit for the period was approximately CNY 515.75 million, with a significant increase compared to the previous year[24]. - The company's net assets attributable to shareholders increased by 24.96% to CNY 25,319,782,347.32 at the end of 2019[18]. Dividend Distribution - The company reported a cash dividend distribution of 674,012,011.40 CNY, which corresponds to a cash dividend of 0.10 CNY per share, accounting for 41.79% of the net profit attributable to shareholders of the parent company[4]. - The company has allocated 12,344,221.85 CNY as a statutory surplus reserve, which is 10% of the net profit of the parent company[4]. - The company has maintained a consistent cash dividend policy over the past three years, with cash dividends of 0.58 RMB per share in 2018 and 0.35 RMB per share in 2017[122]. - The company has committed to ensuring reasonable returns for investors through its cash dividend policy, as supported by independent directors[120]. - The cash dividend distribution for 2019 will be submitted for approval at the annual shareholders' meeting[121]. Risk Management - The company has outlined potential risks related to industry and market factors, advising investors to review relevant sections for detailed insights[6]. - The company’s strategic plans and market outlook are subject to risks, and these forward-looking statements do not constitute a commitment to shareholders or potential investors[5]. - The company faces risks from macroeconomic fluctuations, policy changes, and the impact of the COVID-19 pandemic on operations[111][115]. - The company is monitoring the impact of the oil price war and the subsequent demand pressures on the global oil market, which may lead to significant changes in trade flows and shipping routes[103]. Operational Strategies - The company continues to focus on international oil, dry bulk, and roll-on/roll-off shipping businesses, maintaining a 50% stake in China LNG Transportation (Holdings) Co., Ltd[26]. - The company’s operational strategies include engaging in spot market charters, time charters, and providing technical and commercial management services for vessels[26]. - The company is well-positioned to capitalize on the growth of China's oil import market, which continues to expand rapidly[30]. - The company plans to continue investing in technology and innovation, having delivered the world's first wind-assisted VLCC and smart VLOC, enhancing its competitive edge in smart shipping[42]. Fleet and Capacity - The company owns a fleet of 176 vessels with a total deadweight tonnage of 32.0975 million tons and an average vessel age of 6.41 years, with its VLCC and VLOC fleets ranking first globally[41]. - The effective capacity of the tanker and bulk carrier fleet increased, with the VLCC fleet benefiting from a recovery in the tanker market, leading to improved performance compared to the previous year[20]. - The company has successfully integrated and acquired 49% of the VLCC fleet, achieving 100% ownership and expanding its business lines into coastal transportation and other new fields[41]. - The company plans to receive six new 325,000-ton VLOC bulk carriers in 2020, with one already delivered in February[110]. Financial Governance - The audit report issued by the accounting firm was a standard unqualified opinion, ensuring the accuracy and completeness of the financial report[3]. - There were no non-operating fund occupations by controlling shareholders or related parties, indicating a stable financial governance structure[6]. - The company has not reported any violations in decision-making procedures regarding external guarantees, reflecting adherence to regulatory standards[6]. - The company’s board of directors and senior management have confirmed the authenticity and completeness of the annual report, taking legal responsibility for its contents[2]. Market Outlook - Global oil consumption is projected to grow at a rate of 1% annually until 2040, significantly lower than the 2.3% growth rate in 2018[28]. - The company anticipates a cautious but optimistic outlook for the VLCC oil transportation market in 2020, expecting overall freight rates to perform better than in 2019[104]. - The company expects ongoing challenges in the oil transportation market due to weak downstream demand and potential inventory pressures[104]. - The company is focused on enhancing its operational efficiency through the development of intelligent ship technologies and visual management platforms[99]. Investments and Acquisitions - The company has significant investments in joint ventures, including a 50% stake in China LNG Shipping (Holdings) Co., Ltd., with an investment balance of 2,043,115,225.67 CNY[88]. - The company has invested CNY 6,049,129,956.81 in 10 VLCC tankers, with a project completion rate of 100%[93]. - The company plans to continue expanding its fleet and investing in new technologies to enhance operational efficiency[80]. - The company is actively pursuing market expansion through partnerships and new construction contracts[155]. Environmental and Social Responsibility - The company has committed to integrating social responsibility into its strategic operations, focusing on creating economic, social, and environmental value[178]. - The company implemented energy-saving measures that resulted in a fuel savings of approximately 70,000 tons, equating to a cost reduction of about $25.53 million[183]. - The company installed desulfurization devices on 30 VLCC and VLOC vessels in preparation for the global sulfur cap regulation in 2020[183]. - The company donated a total of RMB 6.5 million to the China Merchants Charity Foundation, establishing scholarships for six maritime universities[179].

[Section I: Definitions](index=4&type=section&id=Section%20I%20Definitions) This section defines key professional terms and company abbreviations, including vessel types, charter forms, and industry-specific metrics, essential for understanding the report - This section primarily defines professional terms and company abbreviations, such as company entities, vessel types (**VLCC, VLOC**), charter forms (time charter, voyage charter), and industry-specific indicators (**TCE, WS**), providing a foundational understanding for the report[5](index=5&type=chunk)[7](index=7&type=chunk) [Section II: Company Profile and Key Financial Indicators](index=5&type=section&id=Section%20II%20Company%20Profile%20and%20Key%20Financial%20Indicators) This section provides an overview of the company's fundamental information and highlights its significant financial performance in the first half of 2019 [Company Information](index=5&type=section&id=Company%20Information) This section provides fundamental company details, including names, legal representative, contact information, addresses, disclosure channels, and stock overview | Item | Information | | :--- | :--- | | **Company Chinese Name** | 招商局能源运输股份有限公司 | | **Company Chinese Abbreviation** | 招商轮船 | | **Stock Exchange** | Shanghai Stock Exchange | | **Stock Code** | 601872 | | **Legal Representative** | Xie Chunlin | [Key Accounting Data and Financial Indicators](index=6&type=section&id=Key%20Accounting%20Data%20and%20Financial%20Indicators) In H1 2019, the company achieved significant performance growth, with operating revenue up 38.09% and net profit attributable to parent up 50.03%, driven by VLCC market recovery, increased tanker capacity, and stable LNG fleet investment income Key Accounting Data for H1 2019 (Unit: RMB Yuan) | Key Accounting Data | This Reporting Period (Jan-Jun) | Prior Year Period (Adjusted) | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 6,375,863,650.86 | 4,617,345,812.71 | 38.09 | | **Net Profit Attributable to Listed Company Shareholders** | 473,959,236.10 | 315,903,535.92 | 50.03 | | **Net Profit Attributable to Listed Company Shareholders After Non-recurring Gains/Losses** | 441,314,274.04 | 105,678,549.84 | 317.60 | | **Net Cash Flow from Operating Activities** | 1,891,460,811.13 | 931,643,581.71 | 103.02 | | **Total Assets (Period-end)** | 52,329,131,043.93 | 49,955,553,366.07 | 4.75 | Key Financial Indicators for H1 2019 | Key Financial Indicators | This Reporting Period (Jan-Jun) | Prior Year Period (Adjusted) | Change | | :--- | :--- | :--- | :--- | | **Basic Earnings Per Share (Yuan/share)** | 0.08 | 0.06 | Increased by 33.33% | | **Basic EPS After Non-recurring Gains/Losses (Yuan/share)** | 0.07 | 0.02 | Increased by 250.00% | | **Weighted Average Return on Net Assets (%)** | 2.32 | 1.76 | Increased by 0.56 percentage points | | **Weighted Average Return on Net Assets After Non-recurring Gains/Losses (%)** | 2.16 | 0.69 | Increased by 1.47 percentage points | - Performance growth was primarily driven by the **VLCC market recovery**, leading to a turnaround for the tanker fleet, the **VLOC fleet's gradual full operation** supporting dry bulk performance, and **steady investment income from the LNG fleet**[16](index=16&type=chunk) [Non-recurring Gains and Losses and Amounts](index=7&type=section&id=Non-recurring%20Gains%20and%20Losses%20and%20Amounts) Non-recurring gains and losses totaled **32.645 million yuan**, mainly from government subsidies and capital occupation fees from non-financial enterprises Details of Non-recurring Gains and Losses (Unit: RMB Yuan) | Item | Amount | | :--- | :--- | | Non-current asset disposal gains and losses | 4,604,908.34 | | Government subsidies | 12,726,081.13 | | Capital occupation fees collected from non-financial enterprises | 15,942,684.64 | | Other non-operating income and expenses | 4,938,713.76 | | Income tax impact | -5,567,425.81 | | **Total** | **32,644,962.06** | [Section III: Company Business Overview](index=9&type=section&id=Section%20III%20Company%20Business%20Overview) This section outlines the company's core shipping operations, its flexible business models, and the varying market conditions across its segments in the first half of 2019 [Description of Main Business, Operating Model, and Industry Conditions](index=9&type=section&id=Description%20of%20Main%20Business%20Operating%20Model%20and%20Industry%20Conditions) The company specializes in international crude oil, dry bulk, domestic ro-ro, and general cargo shipping, with LNG transport via CLNG, experiencing divergent market performance in H1 2019, including improved crude oil TCE, a 26% drop in dry bulk BDI, and challenges in domestic ro-ro - The company's core business encompasses international crude oil, international and domestic dry bulk, domestic ro-ro, and general cargo shipping, with **LNG transportation** managed through its **50%-owned CLNG company**[21](index=21&type=chunk) - Operating models are flexible, including **spot market chartering**, **time charters**, **COA contracts** with cargo owners, and **market pool participation**[21](index=21&type=chunk) Overview of Shipping Markets in H1 2019 | Market Segment | Demand Side Situation | Supply Side Situation | Market Performance | | :--- | :--- | :--- | :--- | | **International Crude Oil** | Global oil consumption grew by 1.5%, with China, US, India as main growth drivers. OPEC cut production, but US exports increased | VLCC new vessel deliveries surged, 32 delivered in H1, only 3 scrapped | VLCC market TCE significantly better than prior year overall in H1, but declined in Q2 | | **International Dry Bulk** | China's iron ore and soybean imports fell YoY, but bauxite and nickel ore imports grew | Dry bulk total capacity grew by 2.9%, orderbook 11.2% of total fleet capacity | BDI index averaged 895 points, down 26% YoY, market started poorly then gradually recovered | | **LNG Transportation** | China's LNG imports continued to grow, accounting for over 1/3 of global seaborne volume | China is projected to need an additional 168 LNG vessels from 2019-2030 | Transportation contract terms shortened, SPOT market activity increased, but earnings highly seasonal | | **Domestic Ro-Ro** | National auto production and sales fell over 12% YoY, water transport market squeezed by road and rail competition | Ro-ro demand decline mismatched with capacity growth, market competition intensified | H1 domestic ro-ro transport volume was 1.498 million vehicles, down 6.3% YoY | [Explanation of Significant Changes in Company's Major Assets During the Reporting Period](index=15&type=section&id=Explanation%20of%20Significant%20Changes%20in%20Company%27s%20Major%20Assets%20During%20the%20Reporting%20Period) The company's asset structure saw significant changes, with total assets up 4.75%, fixed assets increasing 26% due to new vessel deliveries, and construction in progress decreasing 70.19%, while overseas assets constituted **92.11%** of the total - Fixed assets increased by **2.835 billion yuan (26%)** to **39.246 billion yuan**, primarily due to the transfer of **3 VLCCs and 3 VLOCs** from construction in progress[36](index=36&type=chunk) - Construction in progress decreased by **1.207 billion yuan (70.19%)** to **513 million yuan**, mainly as in-progress vessels were transferred to operational status[36](index=36&type=chunk) - Prepayments and other receivables grew by **37.21%** and **22.90%** respectively, driven by increased pre-paid port fees and higher receivables from joint ventures[35](index=35&type=chunk) - Overseas assets totaled **48.20 billion yuan**, representing **92.11%** of total assets[36](index=36&type=chunk) [Analysis of Core Competitiveness During the Reporting Period](index=16&type=section&id=Analysis%20of%20Core%20Competitiveness%20During%20the%20Reporting%20Period) The company's core competitiveness is rooted in its world-leading VLCC and VLOC fleet, strong state-owned enterprise shareholder support, robust financial health, technological innovation in smart vessels, and efficient global operations - **Leading Fleet Scale**: The company operates **176 vessels** totaling **32.08 million DWT**, with its owned **VLCC and VLOC fleets ranking first globally** and its **ro-ro fleet first domestically**[37](index=37&type=chunk) - **Strong Shareholder Support**: Controlling shareholder China Merchants Group and major shareholder Sinopec, both state-owned enterprises, provide **robust development support and business opportunities**[37](index=37&type=chunk) - **Financial Stability**: The company maintains **low comprehensive funding costs and debt ratios** with **strong operating cash flow**[38](index=38&type=chunk) - **Technological Innovation**: The world's first **wind-powered VLCC**, **smart VLOC**, and **smart VLCC** are operational, showcasing achievements in smart vessel and shipping technology[38](index=38&type=chunk) - **Efficient Management**: Operating from mainland China and Hong Kong, the company maintains a **lean and efficient structure**, leading to **relatively low overall operating and management costs**[38](index=38&type=chunk) [Section IV: Discussion and Analysis of Operations](index=17&type=section&id=Section%20IV%20Discussion%20and%20Analysis%20of%20Operations) This section provides a comprehensive discussion and analysis of the company's operational performance, financial position, investment activities, and potential risks during the reporting period [Discussion and Analysis of Operations](index=17&type=section&id=Discussion%20and%20Analysis%20of%20Operations) In H1 2019, amidst global economic slowdown and trade friction, shipping markets diverged, with oil tankers outperforming and dry bulk BDI down 26%; the company expanded its fleet and optimized operations, transporting **87.66 million tons**, and anticipates a positive H2 for oil tankers and dry bulk, with ro-ro demand recovery - **Macro Environment**: Global economic growth slowed amid persistent trade frictions, with China's Q2 GDP growth at **6.2%**[39](index=39&type=chunk)[40](index=40&type=chunk) - **Market Performance**: The international dry bulk market's H1 BDI averaged **895 points**, a **26% year-on-year decrease**, while the oil tanker market performed better than the previous year[47](index=47&type=chunk)[41](index=41&type=chunk) - **Fleet Development**: The company received **2 VLCCs, 2 VLOCs, and 2 ro-ro vessels**, maintaining its **global leading position** with **51 VLCCs and 31 VLOCs**[61](index=61&type=chunk) - **Operating Performance**: The tanker fleet transported **35.98 million tons**, dry bulk **32.53 million tons**, LNG **11.67 million tons**, and ro-ro **7.48 million tons (700,000 vehicles)**[63](index=63&type=chunk) - **H2 Outlook**: The company maintains an **optimistic outlook for the oil tanker market**, anticipates a **promising dry bulk peak season**, and expects **ro-ro market demand to recover** with auto consumption stimulus policies[68](index=68&type=chunk)[69](index=69&type=chunk)[72](index=72&type=chunk) [Analysis of Main Business](index=27&type=section&id=Analysis%20of%20Main%20Business) The company's financial indicators showed significant changes, with operating revenue up **38.09%** due to market recovery and capacity expansion, operating costs up **32.91%**, and financial expenses surging **71.64%**, while operating cash flow increased **103.02%** and investment outflow rose **30.89%** for vessel construction Analysis of Major Financial Statement Items | Item | Current Period Amount (million yuan) | YoY Change (%) | Primary Reason | | :--- | :--- | :--- | :--- | | **Operating Revenue** | 637,586.37 | 38.09 | Oil tanker market conditions better than prior year, increased freight revenue and vessel capacity | | **Operating Cost** | 533,869.56 | 32.91 | Increased vessel capacity led to higher fuel, crew, and port expenses | | **Financial Expenses** | 43,847.17 | 71.64 | Increased interest expenses due to rising USD interbank rates and increased borrowings | | **Net Cash Flow from Operating Activities** | 189,146.08 | 103.02 | Significant increase in freight revenue due to oil tanker market recovery | | **Net Cash Flow from Investing Activities** | -259,856.39 | 30.89 | Payments for VLOC, VLCC, and ro-ro vessel construction | [Analysis of Assets and Liabilities](index=28&type=section&id=Analysis%20of%20Assets%20and%20Liabilities) As of period-end, total assets reached **52.329 billion yuan**, with fixed assets increasing **2.835 billion yuan** and construction in progress decreasing **1.207 billion yuan**; short-term and long-term borrowings rose by **1.519 billion yuan** and **1.317 billion yuan** respectively, while **22.003 billion yuan** in assets were restricted by guarantees - Fixed assets increased by **26%** from the beginning of the year, primarily due to the transfer of in-progress vessels into operation[78](index=78&type=chunk) - Construction in progress decreased by **70.19%** from the beginning of the year, mainly due to the transfer of in-progress vessels to fixed assets[78](index=78&type=chunk) - Short-term and long-term borrowings increased by **1.519 billion yuan** and **1.317 billion yuan** respectively, supporting asset and operating scale expansion and new capacity[78](index=78&type=chunk) - Other payables decreased by **2.114 billion yuan**, primarily due to the repayment of **2.1 billion yuan** in related party borrowings[78](index=78&type=chunk) - As of period-end, **22.003 billion yuan** in assets, predominantly **21.993 billion yuan** in fixed assets, were restricted due to guarantees[79](index=79&type=chunk)[80](index=80&type=chunk) [Analysis of Investment Status](index=30&type=section&id=Analysis%20of%20Investment%20Status) The company steadily advanced external equity investments, with long-term equity investments reaching **2.014 billion yuan**, primarily in LNG transportation via CLNG (**1.794 billion yuan**), and significant non-equity investments totaling **10.963 billion yuan** for **10 VLCCs (88% complete)** and **10 VLOCs (100% complete)** - The company engages in LNG transportation through its **50%-owned joint venture CLNG**, with an investment balance of **1.794 billion yuan**[81](index=81&type=chunk) - The company participates in **VLOC projects** through its **30%-owned associate VLOC Maritime Marshall Ltd**[81](index=81&type=chunk) - During the reporting period, the company increased its capital contribution to associate China Merchants Energy Trading Co., Ltd. by **$3 million**, with a cumulative investment of **$6 million**[81](index=81&type=chunk)[130](index=130&type=chunk) Progress of Major Non-Equity Investment Projects | Project | Project Budget (billion yuan) | Cumulative Investment (billion yuan) | Current Year Investment (billion yuan) | Project Progress (%) | | :--- | :--- | :--- | :--- | :--- | | **10 VLCC Oil Tankers** | 5.92 | 5.187 | 1.279 | 88 | | **10 VLOC Dry Bulk Vessels** | 5.754 | 5.776 | 1.044 | 100 | [Analysis of Major Holding and Participating Companies](index=34&type=section&id=Analysis%20of%20Major%20Holding%20and%20Participating%20Companies) This section details the business of key subsidiaries like **China VLCC** (world's largest VLCC fleet) and **China VLOC** (14 400,000 DWT VLOCs), and associates such as **50%-owned CLNG** (18 LNG vessels), **VLOC Maritime Marshall Ltd**, **Shanghai Changhang International**, and **Shenzhen Changhang Ro-Ro** - **China Energy Shipping Co., Ltd. (China VLCC)**: A wholly-owned subsidiary, operating **51 VLCC oil tankers**, holding the **world's largest owned fleet size**[88](index=88&type=chunk) - **China VLOC Co., Ltd. (China VLOC)**: A wholly-owned subsidiary, owning **14 400,000 DWT VLOCs**, all under **long-term transportation agreements with Vale**[88](index=88&type=chunk) - **China LNG Shipping (Holdings) Co., Ltd. (CLNG)**: A **50%-owned joint venture**, operating **18 LNG vessels** with **3 additional orders**, all secured by long-term time charter agreements[89](index=89&type=chunk) - **Shanghai Changhang International Shipping Co., Ltd.**: A wholly-owned subsidiary, serving as the company's professional platform for **domestic and international general cargo and special transportation**[90](index=90&type=chunk) - **Shenzhen Changhang Ro-Ro Logistics Co., Ltd.**: A wholly-owned subsidiary, a specialized automobile ro-ro transportation enterprise, leading the domestic industry in **fleet size and market share**[90](index=90&type=chunk) [Potential Risks](index=36&type=section&id=Potential%20Risks) The company faces multiple risks, including **industry cyclicality**, **geopolitical and regulatory changes** (e.g., IMO low-sulfur fuel), **intense market competition**, **post-integration management challenges**, **fuel price volatility**, and **foreign exchange fluctuations** - **Industry Cyclicality Risk**: The shipping industry is highly susceptible to global economic cycles, leading to **volatile freight rates** and potential impacts on earnings[93](index=93&type=chunk) - **Geopolitical and Regulatory Risk**: International political events and environmental regulations, such as the **IMO low-sulfur fuel new regulations**, may **increase operating costs and compliance risks**[94](index=94&type=chunk) - **Market Risk**: Fluctuations in global oil tanker and dry bulk markets, coupled with fierce competition, may result in **charter losses and operational challenges**[95](index=95&type=chunk)[96](index=96&type=chunk) - **Integration Risk**: The acquisition and integration of former Sinotrans & CSC Group shipping assets introduce **increased business complexity and management alignment challenges**[97](index=97&type=chunk) - **Fuel Risk**: As a major operating cost, rising fuel prices will **increase voyage costs**, with additional cost uncertainties from **new low-sulfur fuel regulations**[99](index=99&type=chunk) - **Foreign Exchange Risk**: The company's USD-denominated debt exposes it to **RMB-USD exchange rate fluctuations**, impacting consolidated profitability and financial expenses[100](index=100&type=chunk) [Section V: Important Matters](index=38&type=section&id=Section%20V%20Important%20Matters) This section details the company's significant corporate actions and commitments during the reporting period, including profit distribution plans, fulfillment of prior commitments, equity incentive programs, and major related party transactions [Profit Distribution or Capital Reserve Conversion Plan](index=38&type=section&id=Profit%20Distribution%20or%20Capital%20Reserve%20Conversion%20Plan) The company has no profit distribution or capital reserve conversion plan for H1 2019 - The Board of Directors confirmed **no profit distribution or capital reserve conversion plan** for the reporting period[105](index=105&type=chunk) [Fulfillment of Commitments](index=39&type=section&id=Fulfillment%20of%20Commitments) During the reporting period, the company and related parties strictly fulfilled all commitments from asset restructuring, IPO, and refinancing, including share lock-up, resolution of horizontal competition, related party transaction standardization, and profit forecast compensation - Commitment parties involved in asset restructuring, including CMES, China Merchants Steamship, Sinotrans & CSC, and China Merchants Group, **timely and strictly fulfilled** their commitments regarding **share lock-up, related party transactions, horizontal competition, and profit forecast compensation**[107](index=107&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk) [Company Equity Incentive Plan](index=45&type=section&id=Company%20Equity%20Incentive%20Plan) The company actively progressed its stock option incentive plan, which, after multiple revisions and SASAC approval, was passed at the 2018 AGM, leading to the grant of **52.914 million stock options to 120 recipients** on July 18, 2019 - The company's stock option incentive plan draft received **in-principle approval from SASAC** on March 28, 2019, following multiple revisions[118](index=118&type=chunk) - The **2018 Annual General Meeting approved the stock option plan** on June 26, 2019, authorizing the Board to manage related matters[118](index=118&type=chunk) - On July 18, 2019, **52.914 million stock options were granted to 120 incentive recipients**[119](index=119&type=chunk) [Significant Related Party Transactions](index=46&type=section&id=Significant%20Related%20Party%20Transactions) The company engaged in significant related party transactions, including **1.546 billion yuan** in fuel procurement from China Merchants Energy Trading, the controlling shareholder's acquisition of **782 million A-shares**, and a proposed **non-public A-share issuance of up to 4.1 billion yuan** to specific targets including the controlling shareholder Actual Completion of Major Daily Related Party Transactions in H1 2019 | Related Company | Item | Actual Transaction Amount (RMB) | | :--- | :--- | :--- | | China Merchants Energy Trading Co., Ltd. | Fuel oil and procurement | 1.546 billion yuan | | China Petrochemical Corporation and its subsidiaries | Oil product transportation fees and vessel charter fees | 1.007 billion yuan | | Yiu Lian Dockyards and its subsidiaries | Vessel repair | 103 million yuan | - Controlling shareholder China Merchants Steamship acquired **782 million A-shares (12.89% of total share capital)** from CMES and Sinotrans & CSC, with the transfer completed on **June 5, 2019**[127](index=127&type=chunk)[128](index=128&type=chunk) - The company plans a **non-public issuance of A-shares** to specific targets, including the controlling shareholder, to raise up to **4.1 billion yuan**, a plan approved by SASAC and accepted by CSRC[140](index=140&type=chunk) [Section VI: Changes in Ordinary Shares and Shareholder Information](index=64&type=section&id=Section%20VI%20Changes%20in%20Ordinary%20Shares%20and%20Shareholder%20Information) This section details the changes in the company's ordinary share capital and provides an overview of its shareholder structure, highlighting the increased stake of the controlling shareholder [Shareholder Information](index=65&type=section&id=Shareholder%20Information) As of period-end, the company had **150,195 ordinary shareholders**, with controlling shareholder China Merchants Steamship increasing its stake to **54.28%**, and China Petrochemical Corporation holding **15.05%** as the second largest shareholder - As of period-end, the company had **150,195 ordinary shareholders**[154](index=154&type=chunk) Top Ten Shareholders' Holdings | Shareholder Name | Shares Held at Period-end (shares) | Percentage (%) | | :--- | :--- | :--- | | China Merchants Steamship Co., Ltd. | 3,292,872,807 | 54.28 | | China Petrochemical Corporation | 912,886,426 | 15.05 | | China Life Insurance Co., Ltd. - Dividend - Individual Dividend | 110,217,416 | 1.82 | | Fubon Life Insurance Co., Ltd. - Proprietary Funds | 41,377,238 | 0.68 | | MERRILL LYNCH INTERNATIONAL | 40,212,819 | 0.66 | - Controlling shareholder China Merchants Steamship Co., Ltd. increased its holdings by **782 million shares**, raising its stake from **41.39%** at the beginning of the year to **54.28%** at period-end[153](index=153&type=chunk)[155](index=155&type=chunk)[431](index=431&type=chunk) [Section VII: Preferred Shares Related Information](index=66&type=section&id=Section%20VII%20Preferred%20Shares%20Related%20Information) The company had no preferred shares related information during the reporting period - The company had **no preferred shares related information** during the reporting period[157](index=157&type=chunk) [Section VIII: Information on Directors, Supervisors, and Senior Management](index=67&type=section&id=Section%20VIII%20Information%20on%20Directors%20Supervisors%20and%20Senior%20Management) This section details the changes in the company's Board of Directors, Supervisory Board, and senior management team during the reporting period [Changes in Company Directors, Supervisors, and Senior Management](index=67&type=section&id=Changes%20in%20Company%20Directors%20Supervisors%20and%20Senior%20Management) The company's Board, Supervisory Board, and senior management saw multiple changes, with new directors Wang Yongxin, Zhao Yaoming, and Deng Weidong, new supervisors Jiang Hongmei and Yu Jiabo, and new appointments of Wang Yongxin as General Manager and Ding Lei as Deputy General Manager - Director changes: **Su Jian, Liu Wuwu, Wang Zhijun resigned**; **Wang Yongxin, Zhao Yaoming, Deng Weidong elected** as new directors[159](index=159&type=chunk) - Supervisor changes: **Liu Yingjie, Liu Yufeng resigned**; **Jiang Hongmei, Yu Jiabo elected** as new supervisors[159](index=159&type=chunk) - Senior management changes: **Wang Yongxin appointed General Manager**, **Ding Lei appointed Deputy General Manager**[159](index=159&type=chunk) [Section IX: Corporate Bonds Related Information](index=68&type=section&id=Section%20IX%20Corporate%20Bonds%20Related%20Information) The company had no corporate bonds related information during the reporting period - The company had **no corporate bonds related information** during the reporting period[161](index=161&type=chunk) [Section X: Financial Report](index=68&type=section&id=Section%20X%20Financial%20Report) This section presents the company's financial statements for the first half of 2019, along with detailed notes on significant accounting policies, estimates, and specific financial statement items [Financial Statements](index=68&type=section&id=Financial%20Statements) This section presents the company's H1 2019 consolidated and parent financial statements, showing total assets of **52.329 billion yuan**, operating revenue of **6.376 billion yuan**, and net profit attributable to parent of **474 million yuan** Key Items from Consolidated Balance Sheet (June 30, 2019) | Item | Amount (RMB Yuan) | | :--- | :--- | | **Total Assets** | 52,329,131,043.93 | | **Total Liabilities** | 31,850,625,853.03 | | **Equity Attributable to Parent Company Owners** | 20,406,179,923.60 | Key Items from Consolidated Income Statement (Jan-Jun 2019) | Item | Amount (RMB Yuan) | | :--- | :--- | | **Total Operating Revenue** | 6,375,863,650.86 | | **Total Operating Costs** | 6,033,236,436.33 | | **Total Profit** | 507,027,506.69 | | **Net Profit Attributable to Parent Company Shareholders** | 473,959,236.10 | [Significant Accounting Policies and Accounting Estimates Changes](index=112&type=section&id=Significant%20Accounting%20Policies%20and%20Accounting%20Estimates%20Changes) The company adopted new financial instrument accounting standards from January 1, 2019, reclassifying 'available-for-sale financial assets' to 'financial assets measured at fair value with changes in other comprehensive income,' with **no impact on total assets or net assets**, and no significant changes in accounting estimates - The company adopted new financial instrument standards from January 1, 2019, reclassifying **42,345,033.46 yuan** from 'available-for-sale financial assets' to 'other equity instrument investments'[262](index=262&type=chunk)[263](index=263&type=chunk)[264](index=264&type=chunk) - This accounting policy change was a reclassification, with **no impact on total assets, total liabilities, or net assets** as of January 1, 2019[265](index=265&type=chunk) [Notes to Consolidated Financial Statements](index=120&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The financial statement notes detail account compositions and changes, showing **4.145 billion yuan** in monetary funds, fixed assets at **39.246 billion yuan** (net), and construction in progress significantly reduced to **513 million yuan** due to new vessel transfers; short-term and long-term borrowings were **8.033 billion yuan** and **14.151 billion yuan** respectively, with significant capital commitments for new vessel construction and investments - **Fixed Assets**: Period-end book value was **39.246 billion yuan**, primarily comprising oil tankers and dry bulk vessels, with a **3.620 billion yuan increase** from construction in progress transfers[305](index=305&type=chunk)[306](index=306&type=chunk) - **Construction in Progress**: Period-end balance significantly decreased to **513 million yuan** from **1.719 billion yuan**, primarily due to the completion and transfer of several **VLCC and VLOC projects** to fixed assets[309](index=309&type=chunk)[311](index=311&type=chunk) - **Long-term Equity Investments**: Period-end balance was **2.014 billion yuan**, primarily in **joint venture China LNG Shipping (Holdings) Co., Ltd. (1.794 billion yuan)** and various associates[300](index=300&type=chunk)[301](index=301&type=chunk) - **Borrowings**: Period-end short-term borrowings totaled **8.033 billion yuan**, long-term borrowings **14.151 billion yuan**, and non-current liabilities due within one year were **5.968 billion yuan**[322](index=322&type=chunk)[335](index=335&type=chunk)[337](index=337&type=chunk) - **Important Commitments**: As of the balance sheet date, the company had **2.013 billion yuan** in signed but unconfirmed capital expenditure commitments, primarily for **asset acquisition (810 million yuan)** and **capital injection into investee companies (1.203 billion yuan)**[467](index=467&type=chunk)[468](index=468&type=chunk) [Section XI: Reference Documents Directory](index=219&type=section&id=Section%20XI%20Reference%20Documents%20Directory) This section lists documents available for reference, including Board resolutions, signed financial statements, and all publicly disclosed documents from the reporting period - This section lists documents available for reference, including **resolutions from the 29th meeting of the Fifth Board of Directors**, **responsible person-signed financial statements**, and **all publicly disclosed documents** from the reporting period[495](index=495&type=chunk)

Financial Performance - Net profit attributable to shareholders decreased by 47.89% to CNY 439.92 million for the first nine months of the year[5] - Operating revenue for the first nine months rose by 5.21% to CNY 7.32 billion compared to the same period last year[5] - Basic earnings per share fell by 50.37% to CNY 0.0804[6] - The weighted average return on equity decreased by 3.44 percentage points to 1.66%[6] - The company reported a consolidated revenue of 7.319 billion yuan for the first three quarters, an increase of 5.21%, but net profit attributable to shareholders decreased by 47.89% to approximately 439.9 million yuan[23] - Net profit for Q3 2018 was CNY 141,479,166.68, a decrease of 45.06% from CNY 257,978,339.42 in Q3 2017[41] - The total profit for Q3 2018 was ¥9,364,064.80, down 92.5% from ¥124,183,251.69 in Q3 2017[46] Assets and Liabilities - Total assets increased by 12.45% to CNY 48.37 billion compared to the end of the previous year[5] - Total liabilities increased to ¥28.79 billion, up from ¥22.09 billion, representing a growth of approximately 30.5% year-over-year[33] - Current liabilities totaled ¥16.08 billion, a rise from ¥8.44 billion, reflecting a significant increase of approximately 90.5%[33] - Long-term borrowings decreased to ¥12.06 billion from ¥12.93 billion, showing a decline of about 6.7%[33] - Cash and cash equivalents at the end of the reporting period amounted to RMB 4,492.06 million, a decrease of RMB 860.71 million or 16.08% compared to the previous period, primarily due to a decline in operating cash flow from a sluggish tanker market and increased shipbuilding payments[13] - The total assets of the company as of September 30, 2018, amounted to approximately 48.37 billion yuan, an increase from 43.02 billion yuan at the beginning of the year[32] - The company's short-term borrowings increased significantly to approximately 5.97 billion yuan from 2.63 billion yuan at the beginning of the year, indicating a rise in leverage[32] Cash Flow - Net cash flow from operating activities decreased by 52.86% to CNY 1.34 billion for the first nine months[5] - Net cash flow from operating activities was RMB 1,340.22 million, a decrease of RMB 1,503.13 million compared to the previous year, due to lower average tanker freight rates[16] - The company reported a net cash flow from operating activities of ¥1,340,221,415.52 for the first nine months, a decrease of 52.9% from ¥2,843,350,252.48 in the previous year[50] - The company incurred management expenses of ¥6,535,793.29 in Q3 2018, an increase of 72.5% compared to ¥3,785,117.60 in the same period last year[46] - The total operating cash inflow for the first nine months was ¥7,478,173,257.17, a decrease of 3.5% from ¥7,748,192,937.68 in the previous year[50] Operational Highlights - The company received 7 VLOCs and 2 VLCCs during the reporting period, increasing its operational fleet to 19 VLOCs and 47 VLCCs[18] - The company completed the acquisition of 100% equity in several subsidiaries, enhancing its operational capacity and market presence[17] - The company completed the acquisition of Shanghai International, Shenzhen Roll-on Roll, and other subsidiaries, enhancing its operational capacity and market presence[21][24] - The dry bulk shipping market outperformed expectations, with the BDI index averaging 1,349 points, up 31% year-on-year, leading to the company's dry bulk fleet revenue increasing by 39.28% to $186 million[20] Market and Revenue Insights - In the third quarter, the company's VLCC fleet generated revenue of $471 million, a year-on-year decrease of 12.63%, with a gross profit of $14.13 million, down 89.50%[20] - Shanghai International achieved a cargo volume of 28.45 million tons, a year-on-year increase of 7.92%, with revenue rising by 37.13% to approximately $33.1 million[21] - Shenzhen Roll-on Roll-off completed a vehicle transport volume of 1.6044 million units, a year-on-year increase of 12.22%, with revenue of approximately $9.1 million, up 8.46%[22] Future Outlook - The company plans to expand its market presence and invest in new technologies to drive future growth[38]

Financial Performance - The company reported a significant increase in revenue for the first half of 2018, with total revenue reaching RMB 1.2 billion, representing a year-on-year growth of 15%[10]. - The net profit attributable to shareholders for the first half of 2018 was RMB 300 million, an increase of 20% compared to the same period last year[10]. - The company's operating revenue for the first half of 2018 was approximately CNY 2.68 billion, a decrease of 17.83% compared to the same period last year[18]. - Net profit attributable to shareholders for the same period was approximately CNY 105.38 million, down 79.62% year-on-year[18]. - The net cash flow from operating activities was approximately CNY 821.78 million, a decline of 61.39% compared to the previous year[18]. - Basic earnings per share for the first half of 2018 were CNY 0.0199, a decrease of 79.61% compared to the same period last year[22]. - The company reported a significant operational loss in its VLCC fleet despite achieving freight rates that outperformed market indices[20]. - The dry bulk fleet's profitability increased significantly due to the recovery of the bulk market and the expansion of the VLOC fleet[20]. - The company completed the asset acquisition project in July 2018, but the profit and loss from the acquired assets were not reflected in the first half of the year[20]. - The company reported a net loss of CNY 649,872,038.1 during the period[167]. Operational Efficiency - The company’s fleet utilization rate improved to 85%, up from 80% in the previous year, indicating better operational efficiency[10]. - The company plans to expand its fleet by acquiring 5 new vessels by the end of 2019, which is expected to enhance its market presence[10]. - The average daily charter rate for the company's vessels increased by 10% to USD 25,000, reflecting favorable market conditions[10]. - The company is investing in new technologies to improve fuel efficiency, aiming for a 15% reduction in fuel consumption by 2020[10]. - The company is implementing a low-speed sailing strategy to reduce costs in response to the sluggish market and rising fuel prices[50]. - The company is focusing on expanding its customer base, particularly with state-owned enterprises, to enhance operational efficiency[50]. - The company has a fleet of 133 owned vessels with a total deadweight of 2,307.2 thousand tons as of July 19, 2018[48]. Market Conditions - The management highlighted potential risks in the shipping industry, including fluctuating fuel prices and regulatory changes, which could impact future performance[4]. - The international crude oil transportation market remained weak, with VLCC market average earnings hitting a new low due to various factors including reduced demand and supply imbalances[42]. - The average daily net earnings for Middle East/Eastbound routes fell to $7,950 per day, marking a 10-year low in the crude oil transportation market[30]. - The dry bulk shipping market showed recovery in the first half of 2018, with the BCI averaging 1,768 points, up 13.84% year-on-year[46]. - The company expects the international oil tanker transportation market to face significant uncertainties in the second half of 2018, with various factors influencing market conditions[54]. - The dry bulk market is anticipated to continue its recovery in the second half of 2018, supported by stable global economic growth, although there are risks from trade tensions[56]. Financial Position - The company's total assets increased by 6.05% year-on-year, reaching approximately CNY 40.08 billion[18]. - The net asset attributable to shareholders at the end of the reporting period was approximately CNY 15.49 billion, an increase of 1.83% from the end of the previous year[18]. - The company's cash and cash equivalents at the end of the reporting period amounted to 514,873.03 million yuan, an increase of 38,661.76 million yuan or 8.12%[34]. - The company's total assets included 3,679,139.86 million yuan in overseas assets, accounting for 91.80% of total assets[35]. - The company's accounts receivable decreased by 37,326.50 million yuan, a reduction of 10.38%[36]. - The company's inventory increased by 10,539.18 million yuan, a rise of 24.93%, due to an increase in operational vessels and rising fuel prices[36]. - The company’s financial position remains strong with a low debt ratio and robust operating cash flow, providing a solid foundation for both organic growth and external expansion[37]. Risks and Compliance - The company has no non-operational fund occupation by controlling shareholders, ensuring financial integrity[4]. - The company has not violated any decision-making procedures regarding external guarantees, maintaining compliance with regulations[4]. - The company faces risks from global oil tanker market volatility, which may lead to rental losses and impact profitability[79]. - There is a risk of insufficient talent reserves as the company expands, potentially hindering operational development[80]. - Safety management risks could lead to accidents, economic losses, and reputational damage due to various factors[81]. - Geopolitical instability and economic cycles may negatively affect the company's business operations and overall performance[82]. - The company guarantees compliance with laws and regulations, ensuring no misuse of its controlling position to harm shareholder interests[91]. Strategic Initiatives - The company plans to resolve competition issues in the oil transportation sector by integrating internal operations and potentially divesting assets by June 2020[90]. - The company intends to acquire 100% equity of Changhang International to eliminate competition in the dry bulk shipping sector, improving operational efficiency post-acquisition[90]. - The company has formed a joint venture with ICBC Leasing to secure a transportation project for Vale, involving 6+3 vessels of 325,000 tons each[52]. - The company is undergoing asset acquisition and integration, which may introduce uncertainties in business structure and operations[84]. - The company has extended the lock-up period for its shares held by the controlling shareholder until the completion of the asset acquisition[91]. Subsidiaries and Investments - The company completed significant transactions involving the acquisition of 100% equity in Hengxiang Holdings, Shenzhen Roll-on, Changhang International, and Geema Shipping Hong Kong, with the approval process completed by various regulatory bodies[110]. - The company’s subsidiary, Sinopec HK Petroleum Holding Company Ltd, reported revenues of 1,411,112.50 million RMB, with no previous year data available for comparison[106]. - The revenue from the subsidiary, China LNG Transportation (Holdings) Co., Ltd., was recorded at 24,205,507.78 million RMB, indicating its significant contribution to the overall financial performance[110]. Shareholder Information - The company held 2,511,018,262 shares prior to the transaction, with a 12-month lock-up period for newly issued shares starting from July 19, 2018[89]. - The largest shareholder, China Merchants Energy Transportation Co., Ltd., held 2,511,018,262 shares, representing 47.38% of the total shares[131]. - The second largest shareholder, Sinopec Group, held 912,886,426 shares, accounting for 17.23%[131]. - The lock-up period for newly issued shares is 36 months, starting from the registration date of July 19, 2018[134]. Accounting and Compliance - The company confirms its financial statements comply with accounting standards, accurately reflecting its financial position and operating results[180]. - The group maintains a 12-month operating cycle, which is used as a standard for classifying asset and liability liquidity[182]. - The accounting period for the company runs from January 1 to December 31 each year[181]. - The group has the ability to continue as a going concern for at least 12 months from the reporting date, with no significant issues affecting this ability[178].