中国外运(601598) - 2021 Q2 - 季度财报

Section I Definitions This section defines key terms used throughout the report Section II Company Profile and Key Financial Indicators Company Basic Information This chapter details the company's fundamental corporate information, including names, addresses, key contacts, and disclosure channels Company Basic Information | Item | Information | | :--- | :--- | | Company Chinese Name | 中国外运股份有限公司 | | Company Chinese Abbreviation | 中国外运 | | Foreign Name | SINOTRANS LIMITED | | Legal Representative | Li Guanpeng | | Board Secretary | Li Shichu | | Securities Affairs Representative | Lu Ronglei | | Registered Address | Building A, Jinyun Building, No. 43 North Xizhimen Street, Haidian District, Beijing, China | | Office Address | Building B, Sinotrans Building, No. 10, Courtyard 5, Anding Road, Chaoyang District, Beijing, China | | Company Website | www.sinotrans.com | Stock Information | Stock Type | Listing Exchange | Stock Abbreviation | Stock Code | | :--- | :--- | :--- | :--- | | H Shares | Hong Kong Stock Exchange | Sinotrans | 0598 | | A Shares | Shanghai Stock Exchange | Sinotrans | 601598 | Key Accounting Data and Financial Indicators In H1 2021, the company achieved robust performance, with operating revenue growing 55.38% to RMB 61.68 billion and net profit attributable to shareholders increasing 77.93% to RMB 2.16 billion 2021 H1 Key Accounting Data (Consolidated Statements) | Key Accounting Data | Current Period (Jan-Jun) (RMB) | Prior Year Period (RMB) | YoY Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 61,676,723,089.91 | 39,693,676,126.08 | 55.38 | | Net Profit Attributable to Shareholders of Listed Company | 2,162,515,209.01 | 1,215,350,161.87 | 77.93 | | Net Profit Attributable to Shareholders (Excl. Non-recurring Items) | 1,836,195,770.32 | 1,087,610,969.83 | 68.83 | | Net Cash Flow from Operating Activities | 263,421,160.87 | 519,563,054.18 | -49.30 | | Indicator | End of Current Period (RMB) | End of Prior Year (RMB) | Period-end vs. Prior Year-end Change (%) | | Net Assets Attributable to Shareholders of Listed Company | 31,669,015,302.57 | 30,448,004,705.75 | 4.01 | | Total Assets | 72,679,373,118.70 | 65,818,698,691.93 | 10.42 | 2021 H1 Key Financial Indicators | Key Financial Indicators | Current Period (Jan-Jun) | Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Basic Earnings Per Share (RMB/share) | 0.2922 | 0.1642 | 77.93% | | Weighted Average Return on Net Assets (%) | 6.87 | 4.18 | Increased by 2.69 percentage points | | Weighted Average Return on Net Assets (Excl. Non-recurring Items) (%) | 5.83 | 3.74 | Increased by 2.09 percentage points | - Performance growth was primarily driven by the company's strategic focus on "Five Channels + One Platform + N Product Business Units," enhancing end-to-end supply chain operational capabilities, leading to rapid growth in air freight, ocean freight forwarding, and contract logistics, alongside a significant increase in investment income from associates and joint ventures[27] Non-recurring Gains and Losses Non-recurring gains and losses totaled RMB 326 million in the reporting period, mainly from fair value changes in financial assets and government grants 2021 H1 Non-recurring Gains and Losses | Item | Amount (RMB) | | :--- | :--- | | Disposal gains/losses on non-current assets | 56,416,309.96 | | Government grants recognized in current profit/loss | 127,744,862.90 | | Fair value changes and disposal gains/losses on trading financial assets/liabilities | 169,513,984.41 | | Reversal of impairment provisions for receivables and contract assets | 35,193,514.83 | | Other non-operating income/expenses and defined profit/loss items | 27,927,080.85 | | Subtotal | 418,799,677.42 | | Less: Income tax impact | 86,962,532.64 | | Less: Impact on minority interests | 5,517,706.09 | | Total | 326,319,438.69 | Section III Management Discussion and Analysis Principal Business and Industry Overview The company's core business spans professional logistics, agency, and e-commerce, operating within a high-demand, high-freight-rate market environment - The company's principal business comprises three segments: Professional Logistics (core business, including contract logistics, project logistics), Agency and Related Businesses (foundational business, including ocean, air, and rail agency), and E-commerce Business (innovative business, including cross-border e-commerce logistics, e-commerce platforms)[31][33][35] - In the first half of 2021, China's total foreign trade import and export value reached RMB 18.07 trillion, a 27.1% year-on-year increase, driving strong demand for the logistics industry[36] - The ocean shipping market experienced severe supply-demand imbalance, with the China Containerized Freight Index (CCFI) rising to a new high of 2,483.60 points in June 2021; global air cargo demand grew 8% compared to 2019, with capacity remaining tight[38][40] - The number of China-Europe freight train services and the scale of the cross-border e-commerce market continued to grow rapidly, with 7,377 trains dispatched in the first half, a 43% year-on-year increase[41][42] Core Competitiveness Analysis The company's core strengths include its global network, specialized logistics solutions, end-to-end supply chain model, market leadership, and technological innovation - Possesses an extensive domestic service network (covering 32 provinces and cities nationwide) and overseas service network (covering 40 countries and regions with **65 self-operated outlets), benefiting from synergies with China Merchants Group businesses[43] - Demonstrates strong professional logistics solution capabilities, focusing on key industries such as consumer goods, automotive, electronics, and healthcare, providing customized, integrated logistics solutions for industry-leading clients[44] - Provides end-to-end one-stop full supply chain services by strengthening the development of five major channels: water, land, air, rail, and multimodal transport, particularly optimizing operational efficiency in air freight through chartered flights and controlled capacity[45] - Continuously promotes digital transformation, with a technology R&D team of 646 people as of the reporting period end; the self-developed automotive transport management platform (SDCC system) has launched 732 projects, and the "Yun Yi Tong" online platform's revenue grew 187% in the first half[46][47] Discussion and Analysis of Operations In H1 2021, the company achieved strong revenue growth of 55% to RMB 61.68 billion and 78% net profit growth to RMB 2.16 billion, driven by robust performance across all segments - The company focuses on "Five Channels + One Platform + N Product Business Units" to accelerate the establishment of a full-network operation structure, enhancing end-to-end supply chain operational capabilities and achieving simultaneous improvements in operational quality and efficiency[49] Financial Performance by Business Segment (2021 H1) | Business Segment | External Revenue (RMB 100M) | YoY Change | Segment Profit (RMB 100M) | YoY Change | | :--- | :--- | :--- | :--- | :--- | | Professional Logistics | 117.34 | +16.49% | 4.45 | +37.41% | | Agency and Related Businesses | 422.64 | +56.55% | 11.14 | +24.88% | | E-commerce Business | 76.79 | +192.75% | 1.00 | +68.30% | | Total | 616.77 | +55.38% | 16.58 | +31.66% | - Air freight channel business volume reached 460,000 tons, a 80% year-on-year increase; operating revenue and segment profit increased by 100% and 54% respectively[56] - Contract logistics revenue was RMB 9.02 billion, up 18% year-on-year; segment profit was RMB 366 million, up 14% year-on-year[57] Key Business Operational Data (2021 H1) | Business | Volume | YoY Growth | | :--- | :--- | :--- | | Ocean Freight Forwarding | 6.883 million TEU | +18.1% | | Air Freight Channel | 460,000 tons | +80.4% | | Rail Freight Forwarding | 151,000 TEU | +91.1% | | Cross-border E-commerce Logistics | 244.864 million orders | +165.7% | Principal Business Analysis Operating revenue and costs increased by over 55% due to higher volume and freight rates, while operating cash flow decreased due to policy changes and prepayments Financial Statement Key Item Variation Analysis | Item | Current Period (RMB 100M) | Prior Year Period (RMB 100M) | Change (%) | | :--- | :--- | :--- | :--- | | Operating Revenue | 616.77 | 396.94 | 55.38 | | Operating Cost | 588.54 | 374.18 | 57.29 | | Net Cash Flow from Operating Activities | 2.63 | 5.20 | -49.30 | | Net Cash Flow from Investing Activities | -1.16 | -11.38 | N/A | | Net Cash Flow from Financing Activities | 12.51 | -2.47 | N/A | - The decrease in net cash flow from operating activities was mainly due to a lower base in the prior year period from national social security fee exemptions and increased prepayments for chartered flights due to business growth in the current period[71][74] - Fair value change gains amounted to RMB 168 million in the current period, primarily due to the increase in fair value of the company's shares in JD Logistics (HK.02618) after its listing[78] Analysis of Assets and Liabilities Total assets increased 10.42% to RMB 72.68 billion, with notable changes in receivables, prepayments, and short-term borrowings Balance Sheet Key Item Changes | Item Name | Current Period End (RMB) | Prior Year End (RMB) | Change (%) | | :--- | :--- | :--- | :--- | | Accounts Receivable | 14,338,201,560.07 | 11,020,529,018.23 | 30.10 | | Prepayments | 4,157,004,618.97 | 2,708,263,877.18 | 53.49 | | Short-term Borrowings | 2,354,865,609.64 | 502,472,110.58 | 368.66 | | Non-current Liabilities Due Within One Year | 2,170,085,347.25 | 6,251,548,647.08 | -65.29 | | Bonds Payable | 1,997,057,534.25 | – | N/A | - As of the end of the reporting period, the company's overseas assets amounted to RMB 19.054 billion, accounting for 26.22% of total assets[82] Investment Status Analysis Long-term equity investments grew 13.75% to RMB 8.82 billion, primarily from increased equity method earnings from key associates and joint ventures - The ending balance of long-term equity investments was RMB 8.817 billion, an increase of RMB 1.066 billion (+13.75%) from the beginning of the year, mainly from profit/loss adjustments of Sinotrans-DHL (increase of RMB 916 million) and China Merchants Ro-Ro (increase of RMB 93 million)[84] - The company holds JD Logistics shares through CHINA MERCHANTS LOGISTICS SYNERGY LIMITED, whose listing led to an increase of RMB 168 million in fair value change gains during the reporting period[78] Key Holding Subsidiaries Operating Performance (2021 H1) | Company Name | Business Nature | Total Assets (RMB 1,000) | Net Assets (RMB 1,000) | Net Profit (RMB 1,000) | | :--- | :--- | :--- | :--- | :--- | | Sinotrans Logistics Co., Ltd. | Professional Logistics | 2,062,794.38 | 783,720.49 | 22,303.25 | | Sinotrans Air Development Co., Ltd. | Air Freight Forwarding & Express | 1,352,998.97 | 1,085,929.66 | 111,455.12 | | Sinotrans South China Co., Ltd. | Freight Forwarding, Professional Logistics | 933,164.56 | 667,782.32 | 17,376.46 | | Sinotrans East China Co., Ltd. | Freight Forwarding, Professional Logistics | 738,268.49 | 259,691.62 | 22,794.72 | Company Development Strategy and Business Plan The "14th Five-Year Plan" emphasizes "full-network operation" via an integrated "network + product + platform + model" strategy, targeting digital products and intelligent operations - The core of the "14th Five-Year Plan" strategy is "full-network operation," aiming to build an interconnected, online-offline integrated end-to-end channel service system, with platforms coordinating online networks and ecosystem expansion[91][92] - Plans for the second half of the year include accelerating product development, focusing on expanding end-to-end international supply chain logistics products, and planning to open 6 premium road freight trunk lines[93][94] - Regarding overseas layout, the company will "deeply cultivate Hong Kong, meticulously cultivate Southeast Asia," establish new entities in Vietnam and Laos, and promote the layout of European outlets with KLG as the core[96] Potential Risks The company faces risks from macroeconomic volatility, intense competition, operational complexities, procurement management, and credit control - Macroeconomic risks: Global economic recovery uncertainties and high freight rates pose challenges to the supply chain; the company will dynamically adjust its business structure, leverage its train and chartered flight advantages, and strengthen domestic business expansion[98] - Industry competition risks: Intense homogenization in the logistics industry and entry of cross-industry competitors like e-commerce and shipping companies; the company will strengthen resource controllability and achieve economies of scale through its "Five Channels + One Platform + N Product Business Units" operating network[99] - Operational risks: Complexities in end-to-end supply chain services demand high operational efficiency and quality; the company will integrate processes, systems, and data through digital means and improve its internal control system[100] - Procurement management risks: Fluctuations in supplier procurement quality and costs may lead to losses; the company will strengthen supplier classification and grading management, standardize procurement processes, and share resources[101](index=101](index=101&type=chunk) - Credit and accounts receivable risks: Changes in customer creditworthiness due to the pandemic and high freight rates may lead to collection difficulties; the company will strengthen pre-approval assessment and in-process warnings, and enhance collection management[102] Other Disclosures This section covers other key disclosures, including the Sinotrans Development merger, tax expenses, capital expenditures, and total borrowings - The company is proceeding with the legal procedures for the deregistration of Sinotrans Development's legal entity and the succession of its assets and liabilities following the absorption merger[103] Other Financial Data Summary (2021 H1) | Item | Amount/Ratio | | :--- | :--- | | Income Tax Expense | RMB 450 million | | Capital Expenditure | RMB 587 million | | Total Borrowings (Period-end) | RMB 10.687 billion | | Asset-Liability Ratio (Period-end) | 53.84% | | Total Employees (Period-end) | 33,241 | | Interim Dividend | None | Section IV Corporate Governance Shareholder Meetings, Directors, Supervisors, and Senior Management Changes The company's 2020 Annual General Meeting approved 19 proposals, alongside several Board and Supervisory Committee personnel changes during and after the reporting period - On June 10, 2021, the company held its 2020 Annual General Meeting, approving all 19 proposals, including the annual report, profit distribution, and director elections[111] Changes in Directors and Supervisors | Name | Position Held | Change Type | | :--- | :--- | :--- | | Su Jian | Non-executive Director | Resignation | | Liu Wuwu | Non-executive Director | Election | | Song Dexing | Non-executive Director | Re-designation | | Li Guanpeng | Chairman | Resignation | | Liu Yingjie | Chairman of Supervisory Committee | Resignation | Profit Distribution The Board did not propose a 2021 interim dividend, while the 2020 annual profit distribution of RMB 888 million was approved and disbursed - The Board of Directors did not recommend the payment of an interim dividend for the six months ended June 30, 2021[114] - The 2020 annual profit distribution plan of RMB 1.2 per 10 shares (pre-tax), totaling RMB 888 million, was approved and distributed on July 28, 2021[115] Overview of Corporate Governance The company adhered to relevant laws and HKEX Listing Rules' Corporate Governance Code, ensuring standardized governance operations - During the reporting period, the company complied with all code provisions of the Corporate Governance Code in Appendix 14 of the HKEX Listing Rules[117] - During the reporting period, the company held 3 Board meetings, approving 25 proposals; the Audit Committee held 3 meetings; the Remuneration Committee, Nomination Committee, and Supervisory Committee each held 1, 1, and 3 meetings respectively[118][121][122][123][124] Section V Environmental and Social Responsibility Environmental Protection The company prioritizes environmental protection and green logistics, reducing energy consumption while achieving revenue growth - The company is not classified as a key pollutant-discharging entity by environmental protection authorities but highly values energy conservation and environmental protection, having formulated the "Energy Conservation and Environmental Protection Management Regulations" and "Comprehensive Emergency Plan for Environmental Incidents"[128][131] - To achieve "dual carbon" goals, the company actively adjusts its business model, vigorously develops multimodal transport, optimizes energy consumption structure, and promotes new energy applications such as photovoltaic power generation and LNG fuel[132] - During the reporting period, the company's total energy consumption was 40,568 tons of standard coal equivalent, a 0.71% year-on-year decrease, achieving a favorable situation of revenue growth alongside reduced energy consumption[133] Social Responsibility The company actively supports rural revitalization, donating RMB 9 million through the China Merchants Charitable Foundation for projects in key areas - In the first half of 2021, the company donated RMB 9 million through the China Merchants Charitable Foundation for rural revitalization projects, with RMB 6.13 million already disbursed[135] - Key assistance projects include: investing RMB 5 million to purchase 10 ambulances for remote areas in Yecheng, Xinjiang; investing RMB 1.7 million to support the construction of village-level health clinics and the expansion of a walnut processing factory in Yecheng County[135] Section VI Important Matters Significant Related Party Transactions Ongoing related party transactions with China Merchants Group and affiliates, covering logistics, leasing, and financial services, remained within approved annual limits Transportation Logistics Services Transactions with China Merchants Group (Jan-Jun 2021) | Transaction Direction | 2021 Estimated Cap (RMB 100M) | 2021 H1 Actual Amount (RMB 100M) | | :--- | :--- | :--- | | Services provided to China Merchants Group | 25.00 | 4.66 | | Services received from China Merchants Group | 35.00 | 11.33 | Property and Equipment Leasing Transactions with China Merchants Group (Jan-Jun 2021) | Category | 2021 Estimated Cap (RMB 10,000) | 2021 H1 Actual Amount (RMB 10,000) | | :--- | :--- | :--- | | Leased properties and warehouses | 57,000 | 13,520.43 | | Leased out properties and warehouses | 4,000 | 621.31 | | Leased containers and equipment | 1,500 | 302.63 | | Leased out containers and equipment | 20,000 | 4,059.28 | - The company signed a financial services agreement with China Merchants Group Finance Co., Ltd.; as of June 30, 2021, the maximum daily deposit balance with the finance company was RMB 4.781 billion (cap RMB 5 billion), and the maximum daily loan balance was RMB 311 million (cap RMB 10 billion)[149] Significant Contracts and Guarantees Total external guarantees reached RMB 4.8 billion, or 14.31% of net assets, with all guarantees performing normally External Guarantees (As of June 30, 2021) | Guarantee Category | Guarantee Balance (RMB) | | :--- | :--- | | Guarantees for subsidiaries | 4,688,979,176.58 | | Guarantees for non-subsidiaries | 110,360,678.43 | | Total Guarantees | 4,799,339,855.01 | | Total Guarantees as % of Company's Net Assets | 14.31% | Other Significant Matters Post-reporting period, the company issued RMB 2 billion in 5-year corporate bonds at 3.15%, with no other significant subsequent events - On July 23, 2021, the company issued RMB 2 billion of 5-year corporate bonds with a coupon rate of 3.15%[154] Section VII Share Changes and Shareholder Information Share Capital Changes No changes occurred in the company's total share capital or structure during the reporting period - During the reporting period, there were no changes in the company's total share capital or share capital structure[156] Shareholder Information The company had 51,913 shareholders, with China Merchants Group as the ultimate controlling shareholder, and top shareholders collectively holding over 80% of shares - As of the end of the reporting period, the company had 51,913 ordinary shareholders[157] Top Ten Shareholders' Shareholding (As of June 30, 2021) | Shareholder Name | Number of Shares Held (shares) | Percentage (%) | Shareholder Nature | | :--- | :--- | :--- | :--- | | Sinotrans & CSC Holdings Co., Ltd. | 2,472,216,200 | 33.40 | State-owned Legal Person | | HKSCC NOMINEES LIMITED | 2,107,560,399 | 28.48 | Overseas Legal Person | | China Merchants Group Co., Ltd. | 1,600,597,439 | 21.63 | State-owned Legal Person | | Hong Kong Securities Clearing Company Limited | 207,013,854 | 2.80 | Overseas Legal Person | | DEUTSCHE POST BETEILIGUNGEN HOLDING | 35,616,000 | 0.48 | Overseas Legal Person | | China Everbright Bank Co., Ltd. - BOCOM Schroders Hongguang One-Year Holding Mixed Securities Investment Fund | 24,999,965 | 0.34 | Unknown | | Abu Dhabi Investment Authority | 23,256,938 | 0.31 | Overseas Legal Person | | Chen Jingjian | 16,745,003 | 0.23 | Domestic Natural Person | | Jiang Chunsheng | 11,093,800 | 0.15 | Domestic Natural Person | | Agricultural Bank of China Co., Ltd. - Fullgoal CSI 500 Enhanced Index Securities Investment Fund (LOF) | 10,609,944 | 0.14 | Unknown | - Controlling shareholder Sinotrans & CSC Holdings Co., Ltd. is a wholly-owned subsidiary of the ultimate controlling shareholder China Merchants Group Co., Ltd., forming a concerted action relationship[160][163] Shareholding of Directors, Supervisors, and Senior Management No directors, supervisors, or senior management held company shares or debentures, nor were listed securities repurchased, sold, or redeemed - As of June 30, 2021, none of the company's directors, supervisors, or chief executives held any interests or short positions in the company's shares or debentures[169] - During the six months ended June 30, 2021, no member of the Group repurchased, sold, or redeemed any of the company's listed securities[170] Section IX Bond-Related Information Corporate Bonds and Debt Financing Instruments The company managed outstanding bonds, redeeming RMB 2.06 billion of "16 Sinotrans 01" and issuing RMB 2 billion of 3-year medium-term notes - The company redeemed principal and interest of RMB 2.064 billion for "16 Sinotrans 01" corporate bonds on March 2, 2021, and plans to redeem principal and interest of RMB 1.4 billion for "16 Sinotrans 03" corporate bonds on August 24, 2021[181] Newly Issued Bonds During Reporting Period | Bond Name | Abbreviation | Code | Issue Date | Maturity Date | Issue Size (RMB 100M) | Interest Rate (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | 2021 First Tranche Medium-Term Notes | 21 Sinotrans MTN001 | 102101041 | 2021-06-07 | 2024-06-09 | 20 | 3.50 | - Post-reporting period, on July 23, 2021, the company issued RMB 2 billion of 5-year corporate bonds "21 Sinotrans 01" with a coupon rate of 3.15%[177] Key Financial Indicators (Bond-Related) Debt-paying ability indicators improved, with liquidity ratios increasing and interest coverage ratios significantly strengthening due to enhanced operating performance Debt-Paying Ability Related Financial Indicators | Key Indicator | Current Period End/Current Period | Prior Year End/Prior Year Period | Change | | :--- | :--- | :--- | :--- | | Current Ratio | 1.32 | 1.16 | +13.79% | | Quick Ratio | 1.32 | 1.16 | +13.79% | | Asset-Liability Ratio (%) | 53.84 | 51.00 | Increased by 2.84 percentage points | | Interest Coverage Ratio | 13.79 | 6.88 | +100.31% | | EBITDA Interest Coverage Ratio | 18.91 | 10.63 | +77.89% | Section X Financial Report Consolidated Balance Sheet Total assets increased 10.42% to RMB 72.68 billion, with total liabilities at RMB 39.13 billion and parent equity at RMB 31.67 billion Consolidated Balance Sheet Summary (As of June 30, 2021) | Item | Period-end Balance (RMB) | Year-start Balance (RMB) | | :--- | :--- | :--- | | Total Current Assets | 34,294,617,645.06 | 28,257,174,820.12 | | Total Non-current Assets | 38,384,755,473.64 | 37,561,523,871.81 | | Total Assets | 72,679,373,118.70 | 65,818,698,691.93 | | Total Current Liabilities | 25,980,025,707.43 | 24,287,465,741.80 | | Total Non-current Liabilities | 13,149,515,842.44 | 9,280,454,453.45 | | Total Liabilities | 39,129,541,549.87 | 33,567,920,195.25 | | Total Equity Attributable to Parent Company Shareholders | 31,669,015,302.57 | 30,448,004,705.75 | | Total Shareholders' Equity | 33,549,831,568.83 | 32,250,778,496.68 | Consolidated Income Statement In H1 2021, total operating revenue grew 55.38% to RMB 61.68 billion, operating profit rose 72.82% to RMB 2.70 billion, and parent net profit increased 77.93% to RMB 2.16 billion Consolidated Income Statement Summary (Jan-Jun 2021) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | I. Total Operating Revenue | 61,676,723,089.91 | 39,693,676,126.08 | | Less: Total Operating Costs | 61,067,358,434.09 | 39,305,867,255.86 | | Add: Investment Income | 1,156,701,645.92 | 580,899,833.38 | | Add: Fair Value Change Gains | 168,152,429.79 | 0.00 | | III. Operating Profit | 2,700,181,220.03 | 1,562,448,253.68 | | IV. Total Profit | 2,702,833,976.09 | 1,564,490,618.50 | | Less: Income Tax Expense | 450,362,339.28 | 312,466,533.40 | | V. Net Profit | 2,252,471,636.81 | 1,252,024,085.10 | | Net Profit Attributable to Parent Company Shareholders | 2,162,515,209.01 | 1,215,350,161.87 | | Minority Interests | 89,956,427.80 | 36,673,923.23 | Consolidated Cash Flow Statement Operating cash flow was RMB 263 million (-49.3%), investing cash flow was -RMB 116 million, and financing cash flow turned positive to RMB 1.25 billion Consolidated Cash Flow Statement Summary (Jan-Jun 2021) | Item | Current Period Amount (RMB) | Prior Period Amount (RMB) | | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 263,421,160.87 | 519,563,054.18 | | Net Cash Flow from Investing Activities | -116,279,213.81 | -1,137,948,038.18 | | Net Cash Flow from Financing Activities | 1,251,400,873.42 | -246,727,547.92 | | Effect of Exchange Rate Changes on Cash and Cash Equivalents | -49,245,788.79 | -23,805,980.64 | | Net Increase in Cash and Cash Equivalents | 1,349,297,031.69 | -888,918,512.56 | | Cash and Cash Equivalents at Beginning of Period | 11,292,435,757.31 | 10,389,909,366.83 | | Cash and Cash Equivalents at End of Period | 12,641,732,789.00 | 9,500,990,854.27 | Notes to Financial Statements Financial statement notes detail the company's background, preparation basis, accounting policies, and significant estimates, including key treatments and disclosures - Company history: Established in 2002, listed on HKEX in 2003, merged into China Merchants Group with parent Sinotrans & CSC in 2015, and listed on Shanghai Stock Exchange in 2019 through absorption merger of Sinotrans Development[221][222][223] - Basis of financial statement preparation: Prepared on a going concern basis in accordance with Chinese Accounting Standards for Business Enterprises and relevant regulations, with reference to the Hong Kong Companies Ordinance and Listing Rules[226] - Revenue recognition principles: Revenue from agency and related businesses is recognized upon departure/take-off of goods; revenue from professional logistics and e-commerce businesses is recognized at the point of completion due to short service cycles[319] - Segment reporting: Operating segments are divided into agency and related, professional logistics, and e-commerce based on revenue type[776]