招商港口(001872) - 2023 Q4 - 年度财报

Chairman's Address 2023 Full Year Review In 2023, the company achieved stable operating performance with 15.75 billion yuan revenue and 6.98% net profit growth, significantly boosting throughput by including Ningbo Port's volume 2023 Financial Performance Summary | Metric | Amount (Billion RMB) | YoY Change | | :--- | :--- | :--- | | Operating Revenue | 15.75 | - | | Total Profit | 8.80 | - | | Net Profit Attributable to Parent | 3.57 | +6.98% | 2023 Business Performance Summary | Business Category | Throughput (Million TEU/Billion Tons) | YoY Growth | | :--- | :--- | :--- | | Container | 180.195 million TEU | +23.5% | | - Of which: Mainland Ports | 140.306 million TEU | +33.4% | | Bulk Cargo | 1.25 billion tons | +69.6% | - The significant increase in business volume was primarily due to the inclusion of Ningbo Port's operations since October 2022, contributing an additional 31.374 million TEU of container throughput and 0.49 billion tons of bulk cargo in 2023[4] - The company achieved several key breakthroughs in 2023: - Overseas Expansion: Invested in the South Asia Trade and Logistics Center and signed an agreement to acquire shares in Indonesia's NPH company, deepening its Southeast Asian presence - Hub Port Status: Increased market share in both domestic and overseas hub ports - Cost Control: Implemented multi-dimensional cost optimization to effectively boost profits - Smart Technology: CTOS iterated to version 5.0, and "CM ePort" achieved full coverage of domestic controlled ports - ESG Development: Included in multiple ESG indices, with MSCI rating rising two levels to "BB"[5] 2024 Outlook Looking to 2024, the company anticipates slow global economic recovery but new opportunities in the port industry from China's stable growth and policy support, focusing on digital and green technologies to enhance core competitiveness - Global economic recovery in 2024 is expected to be slow and uneven, with geopolitical conflicts (e.g., Russia-Ukraine, Israel-Palestine, Red Sea crisis) and major global elections introducing more uncertainties[6] - China will maintain steady progress, consolidating its economic recovery, with various stabilizing policies and trade agreements (e.g., RCEP) providing new growth opportunities for the port industry, further boosted by digital and green transformations[7] - The company's four core tasks for 2024 include: 1. Building Strategic Strength: Strengthening headquarters capabilities and enhancing overseas expansion capacity 2. Building Leading Strength: Developing differentiated competitive advantages in digital and green technologies 3. Building Professional Strength: Focusing on quality and efficiency improvement, fully implementing lean management, and strengthening cost control 4. Building Supporting Strength: Coordinating strong port construction, key projects, party building, and safe production[8] Company Profile and Key Financial Indicators Key Accounting Data and Financial Indicators In 2023, the company reported 15.75 billion yuan in revenue (down 2.96%) and 3.57 billion yuan in net profit attributable to shareholders (up 6.98%), with total assets reaching 198.56 billion yuan Key Accounting Data (Past Three Years) | Metric | 2023 | 2022 (Adjusted) | 2021 (Adjusted) | | :--- | :--- | :--- | :--- | | Operating Revenue (Yuan) | 15.75 billion | 16.23 billion | 15.28 billion | | Net Profit Attributable to Parent (Yuan) | 3.57 billion | 3.34 billion | 2.69 billion | | Net Profit Attributable to Parent (Excl. Non-recurring) (Yuan) | 3.34 billion | 3.37 billion | 2.37 billion | | Net Cash Flow from Operating Activities (Yuan) | 6.58 billion | 6.92 billion | 6.51 billion | | Basic EPS (Yuan/Share) | 1.43 | 1.61 | 1.40 | | Weighted Average ROE | 6.35% | 7.54% | 6.99% | | Total Assets (Yuan) | 198.56 billion | 197.59 billion | 176.04 billion | | Net Assets Attributable to Parent (Yuan) | 58.85 billion | 54.29 billion | 39.82 billion | 2023 Quarterly Key Financial Indicators (Yuan) | Metric | Q1 | Q2 | Q3 | Q4 | | :--- | :--- | :--- | :--- | :--- | | Operating Revenue | 3.69 billion | 4.10 billion | 3.96 billion | 4.00 billion | | Net Profit Attributable to Parent | 0.85 billion | 1.05 billion | 1.25 billion | 0.42 billion | | Net Profit Attributable to Parent (Excl. Non-recurring) | 0.72 billion | 1.08 billion | 1.20 billion | 0.34 billion | | Net Cash Flow from Operating Activities | 0.70 billion | 1.61 billion | 1.58 billion | 2.69 billion | - 2023 non-recurring gains and losses totaled 0.233 billion yuan, primarily from disposal gains on non-current assets (0.231 billion yuan), including 0.205 billion yuan from the transfer of a 45% equity stake in Ningbo Daxie by a subsidiary[27][28] Management Discussion and Analysis Industry Overview In 2023, global trade growth was weak, but China's economy grew by 5.2%, with its ports maintaining leading throughput growth amidst container market oversupply, positioning the company as a top global port operator - In 2023, global economic growth was 3.1%, but trade volume increased by only 0.8%, while China's GDP grew by 5.2% and total goods trade by 0.2%[30][31] - The container shipping market experienced supply-demand imbalance, with 2.2 million TEU of new capacity delivered globally in 2023, a record high, far exceeding demand growth and limiting freight rate increases[34] - Mainland Chinese ports maintained a global leading growth trend, with cumulative container throughput reaching 310 million TEU (up 4.9%) and cargo throughput 17 billion tons (up 8.2%) in 2023[35] - The company is a leading global port operator, with a network covering 51 ports in 26 countries, ranking third globally in container equity throughput, and leading the industry in net profit margin and labor productivity[36][37] Principal Businesses The company's core businesses include port operations (container and bulk cargo handling) and integrated development, complemented by emerging smart technology and ecological extension services to build a comprehensive port service ecosystem Company Business Segments | Business Category | Business Segment | Business Content | | :--- | :--- | :--- | | Core Business | Port Operations | Port investment and operation (container, bulk cargo handling and storage services) | | | Integrated Development | Providing value-added services such as warehouse/yard leasing, customs declaration, container devanning/stuffing, logistics transportation, and integrated port-side land development | | Cultivation Business | Smart Technology | Focusing on smart port solutions, open platforms, and technology operations to promote digital and intelligent upgrades in the industry | | | Ecological Extension | Integrating port tugboat, tally, and other ecological service resources to enhance port service chain efficiency | Core Competitiveness Analysis The company's core competencies include strong shareholder backing, extensive global port investment experience, advanced digital and cost control management, integrated value chain services, and innovative smart port development capabilities - Leveraging the century-old state-owned enterprise China Merchants Group, the company boasts an excellent industry reputation and extensive synergy potential across the industrial chain[41][42] - Possessing over two decades of port investment experience and a professional global investment team, strategically investing in hub and gateway ports worldwide[43] - Achieving comprehensive digital management of business processes through its self-developed "Smart Management Platform (SMP)" and establishing a robust cost control system[44][45] - Deeply exploring the "Port-Park-City" integrated port development model and leveraging group resources to provide comprehensive port logistics solutions[46] - Committed to digital transformation, its self-developed CTOS system broke foreign monopolies, and Mawan Smart Port became the first 5G smart port in the Guangdong-Hong Kong-Macao Greater Bay Area[47] Main Business Analysis In 2023, the company's port business volume significantly increased by 23.5% for containers and 69.6% for bulk cargo, primarily due to Ningbo Port's inclusion, with overseas revenue growing by 16.16% Port Business Review In 2023, the company's container throughput reached 180.195 million TEU (up 23.5%) and bulk cargo 1.25 billion tons (up 69.6%), primarily driven by the inclusion of Ningbo Port's volume 2023 Company Overall Throughput | Item | 2023 | 2022 | Change Rate | | :--- | :--- | :--- | :--- | | Container Throughput (Million TEU/Billion Tons) | 180.195 million TEU | 145.948 million TEU | 23.5% | | Of which: Mainland | 140.306 million TEU | 105.174 million TEU | 33.4% | | HK & Taiwan | 5.825 million TEU | 6.897 million TEU | -15.5% | | Overseas | 34.064 million TEU | 33.877 million TEU | 0.6% | | Bulk Cargo Throughput (Million TEU/Billion Tons) | 1.25 billion tons | 739.534 million tons | 69.6% | | Of which: Mainland | 1.25 billion tons | 734.008 million tons | 70.0% | | Overseas | 6.915 million tons | 5.526 million tons | 25.2% | - Ningbo Zhoushan Port, included since October 2022, contributed an additional 42.72 million TEU of container throughput and 645.33 million tons of bulk cargo in 2023, significantly boosting the company's overall volume[51][52][55] Operating Plan Implementation The company achieved significant progress in 2023 across seven key areas, including consolidating hub port status, advancing technological innovation, expanding overseas, and enhancing operational management and ESG initiatives - Significant breakthroughs in overseas expansion include signing the South Asia Trade and Logistics Center project agreement (total investment 392 million USD) and acquiring a 51% stake in NPH, operator of Jakarta Port, Indonesia's largest container port[62][63] - Notable achievements in technological innovation include major breakthroughs in the self-developed Container Terminal Operating System (CTOS), full coverage of domestic controlled port areas by the "CM ePort" integrated service platform, and multiple awards for the Smart Management Platform (SMP)[62] - Deepening the "Double Hundred Action" reform, achieving full coverage of tenure-based and contractual management, and being rated "Excellent" in the SASAC's 2022 special assessment for "Double Hundred Enterprises"[65] - ESG development reached new heights, with the company listed on multiple top 100 ESG rankings, and its controlled subsidiary China Merchants Port's MSCI rating improving two levels from "CCC" to "BB"[66] Revenue and Cost Analysis In 2023, the company's operating revenue was 15.75 billion yuan (down 2.96%), with port business accounting for 95.47% of revenue and overseas revenue growing by 16.16% 2023 Operating Revenue Composition | Category | Amount (Yuan) | Share of Operating Revenue | YoY Change | | :--- | :--- | :--- | :--- | | By Industry | | | | | Port Business | 15.04 billion | 95.47% | -3.78% | | Bonded Logistics Business | 0.53 billion | 3.38% | 19.54% | | By Region | | | | | Mainland China, HK & Taiwan | 10.96 billion | 69.58% | -9.47% | | Other Countries | 4.79 billion | 30.42% | 16.16% | Main Business Gross Margin | Category | Operating Revenue (Yuan) | Operating Cost (Yuan) | Gross Margin | Gross Margin YoY Change | | :--- | :--- | :--- | :--- | :--- | | Port Business | 15.04 billion | 8.80 billion | 41.50% | +0.08% | | Mainland China, HK & Taiwan | 10.96 billion | 7.20 billion | 34.28% | -1.60% | | Other Countries | 4.79 billion | 2.12 billion | 55.83% | +1.60% | R&D Investment The company continued R&D investment in 2023, focusing on smart port upgrades like TOS and "CM ePort" development, with total R&D expenditure of 0.244 billion yuan (down 17.49%) - Key R&D projects focus on Terminal Operating Systems (TOS), Smart Management Platform (CM ePort), energy and carbon management platforms, and autonomous driving dispatch systems, aiming for digital and intelligent upgrades in port production, management, and services[76][77][78] 2023 R&D Investment | Metric | 2023 | 2022 | Change Percentage | | :--- | :--- | :--- | :--- | | R&D Investment (Yuan) | 0.24 billion | 0.30 billion | -17.49% | | R&D as % of Operating Revenue | 1.55% | 1.82% | -0.27% | | R&D Personnel (FTE) | 758 | 1,028 | -26.26% | Cash Flow Analysis In 2023, operating cash flow was 6.58 billion yuan (down 4.92%), while investment cash flow turned positive due to reduced outflows, and financing cash flow turned negative, resulting in a 191.84% increase in net cash and cash equivalents Cash Flow Statement Key Items (Yuan) | Item | 2023 | 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Net Cash Flow from Operating Activities | 6.58 billion | 6.92 billion | -4.92% | | Net Cash Flow from Investing Activities | 3.77 billion | -13.96 billion | 126.98% | | Net Cash Flow from Financing Activities | -7.98 billion | 7.52 billion | -206.23% | | Net Increase in Cash and Cash Equivalents | 2.45 billion | 0.84 billion | 191.84% | Future Development Outlook The company anticipates slow global economic growth but opportunities from China's stable development, focusing on globalized, integrated, digital, and green port trends, guided by six key strategies and a five-pronged operating plan for 2024 - The company identifies four major development trends for the future port industry: - Globalization of Port Network: Continuing to optimize global layout and enhance competitiveness - Integration of Port Services: Expanding port-related businesses and offering customized logistics solutions - Digitalization of Port Operations: Accelerating the upgrade from "digitalization" to "smartization" - Green and Low-Carbon Ports: Transitioning to green and low-carbon operations, building next-generation green smart ports[105][106][107] - The company's development strategies include: domestic hub port strategy, overseas strategy, innovation strategy, digitalization strategy, lean operations strategy, and low-carbon strategy[108][109][110] - Key operating plan for 2024 includes: promoting strong port construction, deepening lean management, adhering to innovation-driven development, exploring global layout, and continuously deepening reforms[111][112][113][114][115][116] - The company faces primary risks including macroeconomic volatility, policy risks, and operational management risks, with corresponding countermeasures in place[118][119][120][121][122] Corporate Governance Overview of Corporate Governance The company operates in strict compliance with laws and regulations, maintaining a robust internal control and corporate governance system, with no significant discrepancies in governance practices during the reporting period - The company has established a comprehensive set of governance systems, including the Articles of Association, Rules of Procedure for Shareholder Meetings, and Rules of Procedure for Board Meetings[126] - During the reporting period, the company's board of directors successfully completed its re-election, effectively exercised its powers, and enhanced decision-making capabilities, with all special committees (Audit, Nomination & Remuneration, Strategy & Sustainable Development) fully performing their professional functions[129] Directors, Supervisors, and Senior Management During the reporting period, the company's board, supervisory board, and senior management underwent some changes due to work adjustments, with a mature multi-dimensional performance evaluation system linking executive compensation to company performance - During the reporting period, Mr. Deng Renjie was replaced by Mr. Feng Boming as Chairman, and Mr. Wang Xiufeng was replaced by Mr. Xu Song as CEO[135][137] - Senior management compensation is determined by the Board's Nomination, Remuneration and Assessment Committee, with independent director stipends at 0.15 million yuan per year (tax inclusive)[158] - The company has established a mature executive evaluation mechanism, where annual comprehensive assessment results serve as a key basis for appointment and incentives, strongly linking performance bonuses to company operating performance and individual assessment outcomes[188] Internal Control System Construction and Implementation The company continuously improved its internal control system, maintaining effective financial reporting internal controls in all material aspects as of December 31, 2023, with no significant deficiencies found by the company or its auditors - The company conducted internal control system supervision and inspection on 9 subsidiaries, with all subsidiaries performing quarterly self-assessments, identifying only general deficiencies and no material or significant flaws[190] - Both the Board's self-assessment report and the auditor's internal control audit report concluded that the company maintained effective internal controls over financial reporting in all material aspects as of December 31, 2023[191][197] Environmental and Social Responsibility Environmental Protection The company strictly adheres to environmental regulations, investing 0.17 billion yuan in environmental protection and reducing carbon emissions by 8,000 tons through 57 projects, with no environmental penalties incurred during the period - The company and its key polluting subsidiaries strictly comply with the Environmental Protection Law of the People's Republic of China and other relevant laws, regulations, and industry standards[199] - During the reporting period, the company's total environmental protection investment was 0.17 billion yuan, and environmental tax paid was 5.73 million yuan[207] - The company actively implemented its carbon peaking and carbon neutrality action plan, achieving a carbon reduction of 8,000 tons through 57 projects during the reporting period[208] - During the reporting period, the company received no administrative penalties for environmental issues[209] Social Responsibility The company actively fulfills its social responsibilities through its "C Blue" public welfare brand, implementing impactful projects like the "CM Silk Road Charity Village" overseas and rural education programs domestically - The overseas "CM Silk Road Charity Village" project provided assistance to over 6,000 villagers in Kanda Village, Sri Lanka, through infrastructure development, creating nearly 800 job opportunities[210][211] - Domestically, the "C Blue" public welfare brand continued to advance, implementing rural education charity projects and the "Elite Talent Program," training 63 trainees from 30 countries[212] - Subsidiary Zhanjiang Port actively participated in the rural revitalization strategy, dispatching work groups to complete and implement 11 projects in designated villages, facilitating the effective衔接 of poverty alleviation achievements with rural revitalization[213][214] Significant Matters Fulfillment of Commitments During the reporting period, all commitments made by the company's ultimate controller, shareholders, and related parties regarding avoiding competition, regulating related-party transactions, and ensuring independence were duly fulfilled - Commitments made by the controlling shareholder and ultimate controller, China Merchants Group, and other related parties regarding avoiding horizontal competition, regulating related-party transactions, and maintaining the listed company's independence remain valid and are being fulfilled[215][216][217] Significant Related Party Transactions In the reporting period, the company's routine related-party transactions totaled 0.676 billion yuan, primarily for services and leases, alongside significant transactions including bank deposits/loans and equity transfers 2023 Routine Related Party Transactions | Related Party | Related Party Transaction Content | Transaction Amount (Million Yuan) | % of Similar Transactions | | :--- | :--- | :--- | :--- | | Liaoning Port Group Co Ltd and its subsidiaries | Leasing, labor fees, information service revenue, etc | 127.6145 million | 18.88% | | Sinotrans Limited and subsidiaries | Labor fees, storage fees, leasing, etc | 147.5038 million | 21.82% | | China Nanshan Development (Group) Co Ltd and its subsidiaries | Labor fees, labor income, etc | 141.7634 million | 20.97% | | China Merchants Shekou Industrial Zone Holdings Co Ltd and its subsidiaries | Labor fees, land and property leasing support | 130.0769 million | 19.24% | | Total | | 676.0037 million | | - The company has deposit and loan business with related party China Merchants Bank, with maximum deposit balance not exceeding 10 billion yuan and maximum credit balance not exceeding 15 billion yuan in 2023[238][242] - The company engaged in subsidiary equity transfers and acquisitions with related party Liaogang Co Ltd, aiming to optimize its business structure[245] Share Changes and Shareholder Information Shareholders and Ultimate Controller As of year-end 2023, the company had 29,064 common shareholders, with China Merchants Port Investment Development Company Limited as the largest shareholder (45.96%), and China Merchants Group Co Ltd as the ultimate controller Top Five Shareholders' Shareholding | Shareholder Name | Shareholder Type | Shareholding Percentage | Shares Held at Period End | | :--- | :--- | :--- | :--- | | China Merchants Port Investment Development Company Limited | Overseas Legal Entity | 45.96% | 1,148,648,648 | | Zhejiang Provincial Seaport Investment & Operation Group Co Ltd | State-owned Legal Entity | 23.08% | 576,709,537 | | China Merchants Port Holdings (Shenzhen) Co Ltd | State-owned Legal Entity | 14.84% | 370,878,000 | | Shenzhen Infrastructure Investment Fund Partnership (Limited Partnership) | Fund | 2.59% | 64,850,182 | | Broadford International Limited | State-owned Legal Entity | 2.21% | 55,314,208 | - The company's controlling shareholder is Broadford International Limited, and its ultimate controller is China Merchants Group Co Ltd[271][272] Bond-Related Information Corporate Bonds As of the reporting period, the company had two outstanding corporate bonds, "22 Zhaogang 01" and "22 Zhaogang 02", each with a balance of 3 billion yuan, with all proceeds used as committed Outstanding Corporate Bonds Basic Information | Bond Abbr. | Bond Code | Maturity Date | Bond Balance (Million Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 22 Zhaogang 01 | 148052 | 2025-08-30 | 3,000.00 million | 2.69% | | 22 Zhaogang 02 | 148058 | 2024-09-06 | 3,000.00 million | 2.45% | Non-Financial Enterprise Debt Financing Instruments As of the reporting period, the company had two outstanding non-financial enterprise debt financing instruments, "21 CM Port MTN001" and "23 CM Port SCP003", each with a balance of 2 billion yuan, with all proceeds used as committed Outstanding Non-Financial Enterprise Debt Financing Instruments Basic Information | Bond Abbr. | Bond Code | Maturity Date | Bond Balance (Million Yuan) | Interest Rate | | :--- | :--- | :--- | :--- | :--- | | 21 CM Port MTN001 | 102100703 | 2024-04-16 | 2,000.00 million | 3.52% | | 23 CM Port SCP003 | 012384044 | 2024-02-06 | 2,000.00 million | 2.43% | Financial Report Audit Report Deloitte Touche Tohmatsu Certified Public Accountants issued a standard unqualified audit opinion on the company's 2023 financial statements, highlighting key audit matters related to long-term equity investments in associates and goodwill impairment - The audit opinion is a standard unqualified opinion[296] - Key audit matters include: 1. Subsequent Measurement of Long-term Equity Investments in Associates: Due to the significant carrying amount and recognized investment income 2. Goodwill Impairment: Due to the significant goodwill amount and the significant judgments and estimates involved in impairment testing[299][301] Financial Statement Summary As of year-end 2023, the company's total assets were 198.56 billion yuan, total liabilities 72.99 billion yuan, and net profit attributable to parent shareholders was 3.57 billion yuan on 15.75 billion yuan in revenue Consolidated Balance Sheet Summary (December 31, 2023) | Item | Amount (Yuan) | | :--- | :--- | | Total Assets | 198.56 billion | | Total Current Assets | 23.48 billion | | Total Non-current Assets | 175.07 billion | | Total Liabilities | 72.99 billion | | Total Current Liabilities | 29.10 billion | | Total Non-current Liabilities | 43.89 billion | | Total Shareholders' Equity | 125.57 billion | | Total Equity Attributable to Parent Company Shareholders | 58.85 billion | | Non-controlling Interests | 66.72 billion | Consolidated Income Statement Summary (2023) | Item | Amount (Yuan) | | :--- | :--- | | Operating Revenue | 15.75 billion | | Operating Cost | 9.32 billion | | Operating Profit | 8.81 billion | | Total Profit | 8.80 billion | | Net Profit | 7.50 billion | | Net Profit Attributable to Parent | 3.57 billion | | Non-controlling Interests Income/Loss | 3.92 billion |