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天津港发展(03382) - 2024 - 中期财报

Company Overview Company Profile Tianjin Port Development Holdings Limited, a Hong Kong-listed port operator, primarily engages in container and bulk cargo handling, sales, and port support services, ranking among China's top ports by throughput - The Group is a major port operator in Tianjin Port, primarily engaged in container and bulk cargo handling, sales, and port support services2 - Tianjin Port, located at the intersection of the Beijing-Tianjin urban belt and Bohai Rim economic circle, is China's largest comprehensive port and a crucial foreign trade gateway2 - In the first half of 2024, Tianjin Port ranked as China's seventh largest port by total cargo throughput and sixth by container throughput2 Financial and Operational Summary Financial and Operational Overview In H1 2024, the Group saw increased throughput, with revenue growing 8.0% to HKD 6.746 billion, while profit attributable to shareholders decreased 11.9% to HKD 418 million, maintaining a robust financial position with a reduced gearing ratio Total Throughput | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Total Throughput | | | | Bulk Cargo (million tons) | 125.22 | 117.78 | | Container (million TEUs) | 10.43 | 10.27 | | Consolidated Throughput | | | | Bulk Cargo (million tons) | 95.30 | 86.81 | | Container (million TEUs) | 6.16 | 6.21 | Financial Indicators (million HKD) | Metric | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 6,746 | 6,244 | | Profit Before Income Tax | 1,269 | 1,337 | | Profit Attributable to Shareholders | 418 | 474 | | Basic Earnings Per Share (HK cents) | 6.8 | 7.7 | | Net Cash Inflow from Operating Activities | 1,394 | 1,456 | Financial Position (million HKD) | Metric | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Assets | 41,190 | 40,620 | | Total Borrowings | 5,275 | 5,707 | | Shareholders' Equity | 13,647 | 13,610 | | Gearing Ratio | 17.4% | 18.8% | | Current Ratio | 1.5 | 1.6 | Management Discussion and Analysis Operating Environment and Outlook Despite global uncertainties, China's economic recovery in H1 2024 supported port throughput, with the Group anticipating continued growth in H2 driven by supportive macro policies and strategic initiatives in green, smart, and hub port development - In H1 2024, China's economy continued its recovery, with GDP growing by 5.0%, and national port cargo throughput increasing by 4.6% and container throughput by 8.5% year-on-year9 - For H2 2024, the global economy is projected for moderate recovery amidst geopolitical and trade protectionism uncertainties, with IMF forecasting 3.2% global growth and 5.0% China growth13 - The Group's strategy remains focused on building a world-class green, smart, and hub port, leveraging national policy opportunities like Beijing-Tianjin-Hebei coordinated development and the "Belt and Road" initiative to drive innovation and high-quality growth13 Performance and Dividends In H1 2024, total cargo throughput increased by 1.8% to 228 million tons, but profit attributable to shareholders decreased 11.9% to HKD 418 million, resulting in basic earnings per share of 6.8 HK cents, with no interim dividend declared Performance Metrics | Metric | H1 2024 | H1 2023 | YoY Change | | :--- | :--- | :--- | :--- | | Total Cargo Throughput | 228 million tons | 224 million tons | +1.8% | | Total Container Throughput | 10.43 million TEUs | 10.27 million TEUs | +1.6% | | Profit Attributable to Shareholders | 418 million HKD | 474 million HKD | -11.9% | | Basic Earnings Per Share | 6.8 HK cents | 7.7 HK cents | -11.9% | - The Board has resolved not to declare an interim dividend for the six months ended June 30, 202412 Business and Financial Review In H1 2024, total revenue grew 8.0% to HKD 6.746 billion, driven by sales and bulk cargo handling, but a larger increase in cost of sales led to a 2.1% decline in gross profit and a drop in gross margin to 29.5%, with exchange losses impacting overall profitability Revenue Analysis Total revenue increased 8.0% to HKD 6.746 billion, with handling business revenue up 5.4% driven by bulk cargo, sales business revenue significantly up 16.0%, and other port support services up 6.6%, while container handling revenue slightly decreased 2.7% Revenue by Business Segment (million HKD) | Business Segment | H1 2024 | H1 2023 | Change Rate | | :--- | :--- | :--- | :--- | | Bulk Cargo Handling Business | 2,781 | 2,554 | +8.9% | | Container Handling Business | 1,040 | 1,070 | -2.7% | | Total Handling Business | 3,821 | 3,624 | +5.4% | | Sales Business | 1,631 | 1,407 | +16.0% | | Other Port Support Services | 1,294 | 1,213 | +6.6% | | Total | 6,746 | 6,244 | +8.0% | - Revenue from bulk cargo handling business increased by 8.9%, primarily due to a 6.3% increase in throughput1920 - Revenue from container handling business decreased by 2.7%, mainly due to a slight reduction in throughput at controlled terminals and the impact of RMB depreciation212223 Cost and Gross Profit Analysis Cost of sales increased 12.9% to HKD 4.754 billion, outpacing revenue growth, with other port support services seeing the largest cost increase at 24.7%, leading to a 2.1% decline in gross profit to HKD 1.989 billion and a 3.0 percentage point drop in gross margin to 29.5% Cost of Sales by Business Segment (million HKD) | Business Segment | H1 2024 Cost | H1 2023 Cost | Change Rate | | :--- | :--- | :--- | :--- | | Handling Business | 2,467 | 2,284 | +8.0% | | Sales Business | 1,624 | 1,396 | +16.3% | | Other Port Support Services | 663 | 531 | +24.7% | | Total | 4,754 | 4,211 | +12.9% | - Gross profit amounted to HKD 1.989 billion, a 2.1% decrease compared to the same period last year26 - Gross margin was 29.5%, a 3.0 percentage point decrease from 32.5% in the same period last year, primarily due to a decline in the gross margin of the handling business26 Operating Expenses and Other Gains/Losses Administrative expenses slightly increased 3.4% to HKD 929 million, while other income grew 42.7% due to increased interest and government grants; other gains and losses shifted from a HKD 52 million gain to a HKD 5 million loss primarily due to exchange rate fluctuations, and finance costs decreased 14.3% due to reduced borrowings - Administrative expenses amounted to HKD 929 million, representing a 3.4% increase from the same period last year27 - Other gains and losses recorded a HKD 5 million loss (H1 2023: HKD 52 million gain), primarily due to exchange losses incurred in the current period compared to exchange gains in the prior period28 - Finance costs were HKD 129 million, a 14.3% decrease from the same period last year, mainly attributable to a reduction in total borrowings29 Financial Position and Capital Management As of June 30, 2024, the Group maintained a robust financial position with total assets of HKD 41.19 billion and shareholders' equity of HKD 13.647 billion, a reduced gearing ratio of 17.4%, and strong operating cash flow of HKD 1.394 billion - Net cash inflow from operating activities was HKD 1.394 billion, net cash inflow from investing activities was HKD 12 million, and net cash outflow from financing activities was HKD 725 million32 - As of June 30, 2024, total borrowings amounted to HKD 5.275 billion (end of 2023: HKD 5.707 billion), all denominated in RMB35 - The gearing ratio (total borrowings/total equity) decreased to 17.4% from 18.8% at the end of 2023, with a current ratio of 1.536 - Capital expenditure for H1 2024 was HKD 407 million, with capital commitments of HKD 964 million39 Environmental and Social Responsibility The Group actively promotes green and digital transformation, with its subsidiary Tianjin Port Co. Ltd. being the first in the national port industry to obtain a carbon management system evaluation certificate, while also advancing energy-saving technologies, clean energy, and smart port development through AI and big data integration - Subsidiary Tianjin Port Co. Ltd. was the first in the national port industry to obtain a carbon management system evaluation certificate10 - The Group actively promotes the application of energy-saving and carbon-reducing technologies in ports, including energy-efficient lighting, wind and solar photovoltaic power generation, and smart tugboat pilotage services10 - Committed to building a world-class smart port, the Group strengthens the deep integration of new technologies such as artificial intelligence, big data, and the Internet of Things across various port operations10 Condensed Consolidated Financial Statements Review Report on Financial Statements Deloitte Touche Tohmatsu, the independent auditor, reviewed the Group's condensed consolidated financial statements for the six months ended June 30, 2024, in accordance with Hong Kong Standard on Review Engagements 2410, concluding that nothing came to their attention suggesting the statements were not prepared in all material respects in accordance with HKAS 34 - The scope of review, conducted in accordance with Hong Kong Standard on Review Engagements 2410, is substantially less than an audit, and thus no audit opinion is expressed45 - Conclusion: Nothing has come to their attention that causes them to believe the condensed consolidated financial statements are not prepared, in all material respects, in accordance with Hong Kong Accounting Standard 3445 Condensed Consolidated Statement of Profit or Loss For the six months ended June 30, 2024, the Group's revenue increased 8.0% to HKD 6.746 billion, but profit for the period decreased to HKD 1.014 billion, with profit attributable to equity holders of the Company falling 11.9% to HKD 418 million, due to higher costs and expenses Condensed Consolidated Statement of Profit or Loss (thousand HKD) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Revenue | 6,746,266 | 6,243,968 | | Gross Profit | 1,988,543 | 2,030,212 | | Profit Before Income Tax | 1,268,584 | 1,336,594 | | Profit for the Period | 1,014,320 | 1,083,905 | | Profit Attributable to Equity Holders of the Company | 418,143 | 474,481 | | Basic Earnings Per Share (HK cents) | 6.8 | 7.7 | Condensed Consolidated Statement of Financial Position As of June 30, 2024, the Group's total assets slightly increased to HKD 41.19 billion, with total equity remaining stable at HKD 30.34 billion, while total liabilities rose to HKD 10.85 billion primarily due to increased trade and other payables, resulting in net current assets of HKD 3.335 billion Condensed Consolidated Statement of Financial Position (thousand HKD) | Item | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Non-current Assets | 31,342,266 | 31,826,980 | | Current Assets | 9,847,442 | 8,792,739 | | Total Assets | 41,189,708 | 40,619,719 | | Total Equity | 30,339,516 | 30,283,612 | | Non-current Liabilities | 4,337,377 | 4,748,606 | | Current Liabilities | 6,512,815 | 5,587,501 | | Total Liabilities | 10,850,192 | 10,336,107 | | Net Current Assets | 3,334,627 | 3,205,238 | Condensed Consolidated Statement of Cash Flows In H1 2024, the Group generated HKD 1.394 billion in net cash from operating activities, demonstrating strong cash generation, with net cash inflow of HKD 12 million from investing activities, and net cash outflow of HKD 725 million from financing activities, resulting in a net increase of HKD 680 million in cash and cash equivalents Condensed Consolidated Statement of Cash Flows (thousand HKD) | Item | H1 2024 | H1 2023 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 1,393,901 | 1,456,468 | | Net Cash from/(used in) Investing Activities | 11,649 | (249,048) | | Net Cash used in Financing Activities | (725,246) | (2,522,065) | | Net Increase/(Decrease) in Cash and Cash Equivalents | 680,304 | (1,314,645) | | Cash and Cash Equivalents at End of Period | 6,992,450 | 6,420,992 | Notes to the Condensed Consolidated Financial Statements The notes detail accounting policies and statement components, highlighting the Group's three business segments—cargo handling, sales, and other port support services—with cargo handling as the primary profit driver, no interim dividend declared, all borrowings being unsecured RMB-denominated, and significant related party transactions with Tianjin Port Group and its associates Segment Information The Group's operations are divided into three reportable segments, with the cargo handling segment contributing the largest share of revenue (HKD 3.821 billion) and segment results (HKD 1.354 billion) in H1 2024, while the sales segment generated HKD 1.631 billion in revenue but only HKD 7.4 million in segment results Segment Information (thousand HKD) | Segment | Revenue from External Customers | Segment Results | | :--- | :--- | :--- | | Cargo Handling | 3,821,026 | 1,353,561 | | Sales | 1,631,203 | 7,400 | | Other Port Support Services | 1,294,037 | 631,402 | Dividends The Board resolved not to declare an interim dividend for the six months ended June 30, 2024, following the approval of a final dividend of 4.73 HK cents per share for 2023, totaling approximately HKD 291 million, at the AGM on June 12, 2024 - The Board has resolved not to declare an interim dividend for the six months ended June 30, 2024 (2023: nil)68 - The 2023 final dividend was 4.73 HK cents per ordinary share, totaling HKD 291,273 thousand68 Borrowings As of June 30, 2024, the Group's total borrowings amounted to HKD 5.275 billion, all unsecured and RMB-denominated, with HKD 1.764 billion due within one year, and a weighted average annual interest rate of 4.0% Borrowings Repayment Schedule (thousand HKD) | Repayment Period | Amount | | :--- | :--- | | Within one year | 1,764,106 | | In the second year | 1,131,001 | | In the third to fifth years | 1,816,111 | | After five years | 563,585 | | Total | 5,274,803 | - All borrowings are unsecured, denominated in RMB, and carry a weighted average annual interest rate of 4.0%79 Significant Related Party Transactions The Group engages in significant transactions with its ultimate holding company, Tianjin Port Group and its associates, and associate Tianjin Port Finance Co. Ltd., including HKD 519 million in purchases of goods and services from Tianjin Port Group and its associates, and HKD 3.057 billion in deposits and HKD 3.082 billion in borrowings with Tianjin Port Finance as of period-end - Significant transactions with Tianjin Port Group and its subsidiaries, associates, and joint ventures include purchases of goods and services totaling HKD 519 million, and lease payments for land and properties amounting to HKD 144 million83 - As of June 30, 2024, deposits placed with associate Tianjin Port Finance amounted to HKD 3.057 billion8586 - As of June 30, 2024, borrowings obtained from associate Tianjin Port Finance amounted to HKD 3.082 billion, bearing interest at market rates8586 Other Information Corporate Governance and Shareholder Interests During the reporting period, the Company complied with all provisions of the Corporate Governance Code, with no purchases, sales, or redemptions of its listed securities by the Company or its subsidiaries, and key equity disclosures show Tianjin Port Group Company holding 53.5% and Tianjin Development Holdings Limited holding 21.0% - For the six months ended June 30, 2024, the Company has complied with all code provisions of the Corporate Governance Code93 - During the period, neither the Company nor any of its subsidiaries purchased, sold, or redeemed any of the Company's listed securities94 Major Shareholders | Major Shareholders | Capacity | Shareholding Percentage | | :--- | :--- | :--- | | Tianjin Port Group Company | Interest of controlled corporation | 53.5% | | Tianjin Development | Interest of controlled corporation | 21.0% | Financial Summary Financial Summary This section provides a summary of key financial data from 2019 to 2023 and for H1 2023 and H1 2024, indicating relatively stable revenue and asset size over recent years with fluctuating profitability, and higher revenue but lower profit in H1 2024 compared to the prior year Financial Summary (thousand HKD) | Item | 2022 | 2023 | H1 2023 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Consolidated Statement of Profit or Loss | | | | | | Revenue | 13,017,326 | 13,484,271 | 6,243,968 | 6,746,266 | | Gross Profit | 3,337,426 | 3,697,658 | 2,030,212 | 1,988,543 | | Profit for the Year/Period | 1,174,909 | 1,685,192 | 1,083,905 | 1,014,320 | | Profit Attributable to Shareholders | 345,266 | 728,594 | 474,481 | 418,143 | | Consolidated Statement of Financial Position | | | | | | Total Assets | 42,210,905 | 40,619,719 | N/A | 41,189,708 | | Equity Attributable to Shareholders | 13,244,458 | 13,610,148 | N/A | 13,646,775 |