Financial Performance - The company's operating revenue for the first half of 2014 was CNY 138,137,863.25, a decrease of 3.18% compared to the same period last year[19]. - Net profit attributable to shareholders was CNY 223,695,540.63, an increase of 22.91% year-on-year[19]. - The net profit after deducting non-recurring gains and losses was CNY 174,966,634.50, down 3.86% from the previous year[19]. - The overall operating revenue for the reporting period was CNY 138.1379 million, a decrease of 3.18% compared to the previous year, while operating costs increased by 1.01% to CNY 59.6022 million[29]. - The company reported a significant increase in income tax expenses by 161.50% to CNY 40.3679 million, primarily due to tax provisions related to land injection gains in Xigang District[29]. - The company reported a net loss warning for the period from January to September 2014, indicating potential significant changes in net profit compared to the same period last year[41]. - The net profit for the first half of 2014 was CNY 295,093,260, representing a decrease of 44,386,320 compared to the previous year[103]. - The total comprehensive income for the period was CNY 295,093,260, which includes net profit and other comprehensive income[103]. Assets and Liabilities - The total assets at the end of the reporting period were CNY 5,869,697,863.93, an increase of 5.06% compared to the end of the previous year[19]. - The total liabilities rose to CNY 605,955,415.38 from CNY 480,238,324.89, which is an increase of about 26.2%[78]. - The total owner's equity at the end of the reporting period was CNY 4,687,249,000, reflecting an increase from the previous year's CNY 4,355,373,000[106]. - The total liabilities at the end of the reporting period were CNY 4,899,724,000, indicating a stable financial position[103]. - The total current assets decreased to CNY 768,340,809.40 from CNY 909,818,240.99, reflecting a decline of about 15.5%[76]. - The total current liabilities decreased to CNY 99,148,084.25 from CNY 150,866,985.12, reflecting a decline of about 34.1%[78]. Investments and Projects - The company plans to continue advancing the construction and operational preparations for the coal terminal project in Huikong[24]. - The total planned investment for the Huizhou Port Qianwan Coal Terminal Phase I project is CNY 249,320 million, with CNY 7,784.16 million invested during the reporting period and a cumulative investment of CNY 29,162.12 million as of the end of the reporting period, indicating a project progress of 11.70%[40]. - The cumulative actual investment in the Huizhou Port Qianwan Coal Terminal project as of the reporting period is CNY 29,162.12 million, reflecting ongoing commitment to infrastructure development[40]. - The company invested CNY 62.9893 million in external equity investments during the reporting period, marking a 100% increase compared to the previous year[33]. Shareholder Information - The company did not plan to distribute cash dividends or issue bonus shares for this reporting period[5]. - The company announced a cash dividend of CNY 0.33 per share (including tax) based on a total share capital of 194,220 million shares, with the dividend distribution completed on June 20, 2014[41]. - The company has committed to maintaining a cash dividend distribution of no less than 20% of the annual distributable profit for the next three years[62]. - The company is actively fulfilling its commitments regarding profit distribution and shareholder returns[62]. - The total number of shares is 1,942,200,000, with 99.99% being unrestricted shares[67]. - The largest shareholder, Shenzhen Yantian Port Group Co., Ltd., holds 1,308,450,000 shares, accounting for 67.37% of total shares[70]. Operational Challenges - The company faced operational pressure due to a decline in external trade in the Pearl River Delta region, impacting port and logistics volumes[24]. - The decrease in revenue was primarily due to reduced land rental income, which fell by CNY 289.06 million, a decline of 34.14% year-on-year[24]. - The company is facing challenges such as slowing throughput growth and increasing operational pressures due to market competition and policy-related expenditures[27]. Governance and Compliance - The company has established a governance structure that includes independent directors and specialized committees, ensuring compliance with relevant laws and regulations[46]. - The company has maintained a high level of information disclosure, receiving an A rating from the Shenzhen Stock Exchange for five consecutive years from 2009 to 2013[47]. - The company has effectively separated its operations from its controlling shareholder, ensuring independent accounting and risk management[46]. - The company has established and implemented an insider information management system in accordance with the Securities Law, with no incidents of insider trading reported during the reporting period[48]. - The company conducted a self-assessment of internal controls for the year 2013, with no significant internal control deficiencies identified[50]. Cash Flow and Financing - Cash flow from operating activities netted ¥68,105,522.81, a slight increase from ¥67,124,313.56 in the previous period[91]. - Cash flow from investing activities resulted in a net outflow of ¥91,661,484.29, compared to an inflow of ¥92,611,462.25 previously[92]. - Cash flow from financing activities generated a net inflow of ¥982,701.36, contrasting with a net outflow of ¥185,358,286.51 in the previous period[92]. - The ending cash and cash equivalents balance is ¥174,687,557.18, up from ¥171,635,916.85[92]. - The company distributed dividends totaling 64,092,600.00 yuan, down from 194,220,000.00 yuan in the previous period, reflecting a decrease of approximately 67.0%[96]. Accounting Policies and Practices - The company adheres to the accounting standards set by the Ministry of Finance and complies with the disclosure requirements of the China Securities Regulatory Commission[115]. - The company’s financial statements reflect its financial position and operating results as of June 30, 2014, in accordance with the relevant accounting standards[115]. - The company has not changed its accounting policies or estimates during the reporting period[190]. - The company's effective corporate income tax rate is 25% as of the current year, following a transition period that ended in 2012[197]. - The company recognizes expected liabilities when obligations related to contingent matters meet specific criteria, including the likelihood of economic benefits flowing out[177][178].

[Important Notice](index=1&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The company's management guarantees the authenticity, accuracy, and completeness of this quarterly report [Management's Declaration](index=1&type=section&id=%E7%AC%AC%E4%B8%80%E8%8A%82%20%E9%87%8D%E8%A6%81%E6%8F%90%E7%A4%BA) The Board of Directors, Board of Supervisors, and senior management affirm the report's truthfulness and completeness - The company's Board of Directors, Board of Supervisors, and senior management guarantee the authenticity, accuracy, and completeness of the report and assume legal responsibility[2](index=2&type=chunk) - The Chairman, General Manager, and CFO jointly declare the authenticity, accuracy, and completeness of the financial statements[3](index=3&type=chunk) [Key Financial Data and Shareholder Changes](index=1&type=section&id=%E7%AC%AC%E4%BA%8C%E8%8A%82%20%E4%B8%BB%E8%A6%81%E8%B4%A2%E5%8A%A1%E6%95%B0%E6%8D%AE%E5%8F%8A%E8%82%A1%E4%B8%9C%E5%8F%98%E5%8C%96) This section presents key financial performance indicators and an overview of the company's shareholder structure [Key Accounting Data and Financial Indicators](index=1&type=section&id=%E4%BA%8C%E3%80%81(%E4%B8%80)%20%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%95%B0%E6%8D%AE%E5%92%8C%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87) In Q1 2014, net profit attributable to shareholders grew significantly due to non-recurring gains, despite a slight decline in revenue Key Financial Indicators for Q1 2014 | Indicator | Current Period | Same Period Last Year | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue (CNY) | 67,386,655.96 | 69,545,378.11 | -3.1% | | Net Profit Attributable to Shareholders (CNY) | 111,731,675.77 | 79,098,537.09 | 41.26% | | Net Profit Excl. Non-recurring Items (CNY) | 73,675,080.28 | 79,087,916.94 | -6.84% | | Net Cash Flow from Operating Activities (CNY) | 24,644,469.89 | 21,553,653.85 | 14.34% | | Basic Earnings Per Share (CNY/Share) | 0.0575 | 0.0407 | 41.28% | | Weighted Average ROE (%) | 2.33% | 1.72% | 0.61% | | **Balance Sheet Indicators** | **End of Current Period** | **End of Last Year** | **Change from End of Last Year (%)** | | Total Assets (CNY) | 5,880,697,138.26 | 5,587,084,672.07 | 5.26% | | Net Assets Attributable to Shareholders (CNY) | 4,858,831,092.23 | 4,747,099,416.46 | 2.35% | Non-recurring Profit and Loss Items | Item | Amount (CNY) | | :--- | :--- | | Other non-operating income and expenses | 62,198,828.04 | | Less: Income tax effect | 4,436.93 | | Less: Minority interest effect (after tax) | 24,137,795.62 | | **Total** | **38,056,595.49** | [Shareholder Information](index=2&type=section&id=%E4%BA%8C%E3%80%81(%E4%BA%8C)%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E6%9C%AB%E8%82%A1%E4%B8%9C%E6%80%BB%E6%95%B0%E5%8F%8A%E5%89%8D%E5%8D%81%E5%90%8D%E8%82%A1%E4%B8%9C%E6%8C%81%E8%82%A1%E6%83%85%E5%86%B5%E8%A1%A8) The company's ownership is highly concentrated, with the controlling shareholder holding a 67.37% stake - Total number of shareholders was **86,807** at the end of the reporting period[9](index=9&type=chunk) Top Five Shareholders' Holdings | Shareholder Name | Shareholder Type | Shareholding Ratio (%) | Number of Shares | | :--- | :--- | :--- | :--- | | Shenzhen Yantian Port Group Co., Ltd. | State-owned legal person | 67.37% | 1,308,450,000 | | Shenzhen Bao'an Baolilai Industrial Co., Ltd. | Domestic non-state-owned legal person | 0.21% | 3,985,410 | | Xu Zhijun | Domestic natural person | 0.11% | 2,163,181 | | Li Changling | Domestic natural person | 0.11% | 2,144,539 | | Han Jiyun | Domestic natural person | 0.11% | 2,105,417 | - The controlling shareholder, Shenzhen Yantian Port Group Co., Ltd., has no related-party relationships or concerted actions with other shareholders[10](index=10&type=chunk) [Important Matters](index=3&type=section&id=%E7%AC%AC%E4%B8%89%E8%8A%82%20%E9%87%8D%E8%A6%81%E4%BA%8B%E9%A1%B9) This section details significant financial fluctuations, corporate commitments, and investment activities during the period [Analysis of Significant Changes in Financial Data](index=3&type=section&id=%E4%B8%89%E3%80%81(%E4%B8%80)%20%E6%8A%A5%E5%91%8A%E6%9C%9F%E4%B8%BB%E8%A6%81%E4%BC%9A%E8%AE%A1%E6%8A%A5%E8%A1%A8%E9%A1%B9%E7%9B%AE%E3%80%81%E8%B4%A2%E5%8A%A1%E6%8C%87%E6%A0%87%E5%8F%91%E7%94%9F%E9%87%8D%E5%A4%A7%E5%8F%98%E5%8A%A8%E7%9A%84%E6%83%85%E5%86%B5%E5%8F%8A%E5%8E%9F%E5%9B%A0) Significant financial fluctuations were driven by investments in the Huizhou Quanwan Coal Terminal project Significant Changes in Key Financial Items and Reasons | Item | Change Rate (%) | Reason | | :--- | :--- | :--- | | **Assets** | | | | Other Non-current Assets | +83.65% | Prepayments for Huizhou Quanwan Coal Terminal project | | Construction in Progress | +34.89% | Progress payments for Huizhou Quanwan Coal Terminal project | | **Liabilities** | | | | Taxes Payable | +410.73% | Corporate income tax arising from contribution of West Port Area A2, A3 land plots as equity | | **Income Statement Items** | | | | Non-operating Income | +224971.03% | Income from contribution of West Port Area A2, A3 land plots as equity | | **Cash Flow Statement Items** | | | | Cash Paid for Acquisition of Long-term Assets | +5392.06% | Payments for Huizhou Quanwan Coal Terminal project | - Investment in the **Huizhou Quanwan Coal Terminal project** was the primary driver for the substantial increase in construction in progress, other non-current assets, and cash paid for long-term assets[13](index=13&type=chunk)[14](index=14&type=chunk) [Commitments](index=5&type=section&id=%E4%B8%89%E3%80%81(%E4%BA%8C)%20%E5%85%AC%E5%8F%B8%E6%88%96%E6%8C%81%E8%82%A1%205%25%E4%BB%A5%E4%B8%8A%E8%82%A1%E4%B8%9C%E5%9C%A8%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E5%8F%91%E7%94%9F%E6%88%96%E4%BB%A5%E5%89%8D%E6%9C%9F%E9%97%B4%E5%8F%91%E7%94%9F%E4%BD%86%E6%8C%81%E7%BB%AD%E5%88%B0%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E7%9A%84%E6%89%BF%E8%AF%BA%E4%BA%8B%E9%A1%B9) The company and its controlling shareholder are actively fulfilling commitments regarding control, competition, and dividends - The controlling shareholder, Yantian Port Group, has committed to maintaining its absolute controlling stake, avoiding competition, and supporting the company's development[15](index=15&type=chunk) - The company committed to a cash dividend payout of **no less than 20%** of distributable profit annually for 2012-2014, with a three-year cumulative payout of no less than 60% of the annual average[15](index=15&type=chunk) [Business Performance Forecast](index=6&type=section&id=%E4%B8%89%E3%80%81(%E4%B8%89)%20%E5%AF%B9%202014%20%E5%B9%B4%201-6%20%E6%9C%88%E7%BB%8F%E8%90%A5%E4%B8%9A%E7%BB%A9%E7%9A%84%E9%A2%84%E8%AE%A1) The company anticipates no significant change in cumulative net profit for the first half of 2014 compared to the prior year - The company forecasts that the cumulative net profit for the first half of 2014 will not change significantly compared to the same period last year[16](index=16&type=chunk) [Securities Investment](index=6&type=section&id=%E5%9B%9B%E3%80%81%E8%AF%81%E5%88%B8%E6%8A%95%E8%B5%84%E6%83%85%E5%86%B5) The company holds a 16.37% long-term equity investment in Hainan Strait Shipping Co., Ltd (002320) Holdings in Other Listed Companies | Stock Name | Stock Code | Shareholding Ratio (%) | Closing Book Value (CNY) | P/L for the Period (CNY) | | :--- | :--- | :--- | :--- | :--- | | Hainan Strait Shipping | 002320 | 16.37% | 313,454,239.58 | 3,583,690.96 | [Investor Relations Activities](index=6&type=section&id=%E4%BA%94%E3%80%81%E6%8A%A5%E5%91%8A%E6%9C%9F%E5%86%85%E6%8E%A5%E5%BE%85%E8%B0%83%E7%A0%94%E3%80%81%E6%B2%9F%E9%80%9A%E3%80%81%E9%87%87%E8%AE%BF%E7%AD%89%E6%B4%BB%E5%8A%A8%E7%99%BB%E8%AE%B0%E8%A1%A8) No investor relations activities such as receptions, surveys, or interviews were conducted during the reporting period - No investor relations activities, such as research meetings, communications, or interviews, were conducted during the reporting period[17](index=17&type=chunk)

Financial Performance - The company's operating revenue for 2013 was CNY 307,695,495.77, a decrease of 2.77% compared to CNY 316,465,125.64 in 2012[21] - The net profit attributable to shareholders for 2013 was CNY 388,464,524.92, down 5.26% from CNY 410,028,358.70 in the previous year[21] - The basic earnings per share for 2013 were CNY 0.20, a decrease of 5.26% from CNY 0.2111 in 2012[21] - The weighted average return on equity for 2013 was 8.39%, down from 9.03% in 2012[21] - The company's total operating revenue for the transportation industry was 263.06 million yuan, a decrease of 4.58% year-on-year, while the gross margin was 62.85%[35] - The company reported a net profit of RMB 388,464,524.92 for 2013, with a cash dividend payout of 16.5%[63] - The total comprehensive income attributable to the parent company was CNY 368,725,445.82, down from CNY 414,029,072.55[138] Cash Flow and Investments - The net cash flow from operating activities increased by 8.61% to CNY 107,295,925.52 in 2013, compared to CNY 98,790,810.86 in 2012[21] - The company's cash flow from operating activities was 308.87 million yuan, a decrease of 6.21% year-on-year, while cash outflow was reduced by 12.56% to 201.58 million yuan[33] - Investment cash inflow decreased by 44.42% to 351.59 million yuan, while cash outflow surged by 307.92% to 348.41 million yuan[34] - The company reported a net cash outflow from financing activities of CNY -97,417,564.51, compared to CNY -556,283,267.46 in the previous year[143] - The net cash flow from investment activities was 198,087,733.45 CNY, down from 574,068,308.31 CNY year-over-year[146] Assets and Liabilities - The total assets at the end of 2013 were CNY 5,587,084,672.07, reflecting a growth of 5.56% from CNY 5,292,636,082.54 at the end of 2012[21] - The total liabilities rose to CNY 480,238,324.89, compared to CNY 396,572,586.37, marking an increase of 21.06%[131] - The company's long-term equity investments were valued at 3.50 billion yuan, representing 62.56% of total assets, with a slight decrease from the previous year[37] - The company's total current assets were approximately CNY 909.82 million at the end of 2013, an increase from CNY 897.42 million at the beginning of the year, reflecting a growth of about 1.55%[129] Dividends and Shareholder Returns - The company plans to distribute a cash dividend of CNY 0.33 per 10 shares to all shareholders based on the total share capital as of December 31, 2013[6] - In 2013, the company distributed a cash dividend of RMB 0.33 per 10 shares, totaling RMB 64,092,600, which represents 100% of the distributable profit[64] - The cash dividend payout ratio for 2012 was 47.37%, with a total cash dividend of RMB 194,220,000 against a net profit of RMB 410,028,358.70[63] - The company has a cash dividend policy that mandates a minimum payout ratio of 80% during profit distribution when in a mature development stage[64] Operational Highlights - The traffic volume of the company's controlled Huizhou-Yan Highway reached 31.19 million vehicles, a year-on-year increase of 10.16%[27] - The operating revenue of Huizhou-Yan Highway was 234.68 million yuan, a year-on-year decrease of 7.06%, while net profit was 99.41 million yuan, down 2.39%[27] - The traffic volume of the company's controlled Xiangtan Four Navigation increased by 19.49% to 2.50 million vehicles, with operating revenue rising by 22.37% to 28.38 million yuan and net profit increasing by 1,828.07% to 8.92 million yuan[27] Management and Governance - The company has appointed Ruihua Certified Public Accountants as the auditor for the 2013 financial statements, with an audit fee of RMB 245,000[73] - The company has established four specialized committees within the board, with independent directors holding majority positions[102] - The company has a diverse board with members having extensive experience in the energy and port management sectors[88] - The company is focused on maintaining strong governance through its board and supervisory committee structures[90] Future Outlook and Strategy - The company anticipates that the port industry will maintain low-speed growth in business volume due to sluggish external demand and a challenging shipping market[49] - The company plans to focus on key projects and stabilize operating income while enhancing management efficiency, particularly in the construction of the Huizhou Port coal terminal phase I and the expansion of the Yantian Port West Terminal[52] - The company anticipates a slowdown in domestic port industry growth in 2014, prompting a diversification of terminal operations and a focus on the domestic shipping market[55] Compliance and Reporting - The company’s financial report indicates no changes in accounting policies or methods compared to the previous year, ensuring consistency in financial reporting[57] - The financial statements were prepared in accordance with the Chinese Accounting Standards and reflect the company's financial position as of December 31, 2013[166] - The company has implemented a management system for insider information to ensure compliance with securities laws and regulations[105]