China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary) Stock Code: 001872, 201872 Stock Name: CM Port Group, CM Port Group B Announcement No. 2019-062 CHINA MERCHANTS PORT GROUP CO., LTD.
INTERIM REPORT 2019 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2019 Interim Report of China Merchants Port Group Co., Ltd. (hereinafter referred to as the “Company”). In order for a full understanding of theCompany’s operating results, financial position and future development plans, investors should carefully read the aforesaid full text on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All the directors of the Company except for the following attended in person the Board meeting for the review of this Report and its summary.
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|-|-|-|-|
|||Reason for not attending|Proxy entrusted to attend|
|Name|Office title|||
|||the meeting in person|the meeting|
|Yan Shuai|Director|Other company affairs|Su Jian|

Independentauditor’s modified opinion:
□ Applicable√ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable√ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable√ Not applicable
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail. Part II Key Corporate Information
1. Stock Profile
China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary)
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|-|-|-|-|-|
||CM Port Group, CM PortGroup B|||001872, 201872|
|Stock name||Stock code|||
|Stock exchange for stock listing|Shenzhen Stock Exchange||||
|Contact information|Board Secretary||Securities Representative||
|Name|Huang Chuanjing||Hu Jingjing||
||23-25/F, China Merchants Port Plaza, 1Gongye 3rd Road, Zhaoshang Street,Nanshan, Shenzhen, PRC||23-25/F, China Merchants Port Plaza, 1Gongye 3rd Road, Zhaoshang Street,Nanshan, Shenzhen, PRC||
|Office address|||||
|Tel.|+86 755 26828888||+86 755 26828888||
|E-mail address|Cmpir@cmhk.com||Cmpir@cmhk.com||

2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes□ No
The retrospective restatements in the table below are caused by changes to the accounting policies and a business combination under common control. For further information, please refer to “(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the Last Accounting Period” and “(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period” under “2. Matters Related to Financial Reporting” in “Part III Operating Performance Discussion and Analysis”.
||||||
|-|-|-|-|-|
|||H1 2018||Change (%)|
||H1 2019||||
|||Original|Restated|Restated|
|Operating revenue (RMB)|5,834,353,421.33||4,672,338,040.72||
|||1,246,135,516.34||24.87%|
|Net profit attributable to the listed|2,299,181,330.61||620,038,405.65||
|||316,060,290.67||270.81%|
|company’s shareholders (RMB)|||||
|Net profit attributable to the listed|||||
|company’s shareholders before|569,405,330.09|316,625,908.24|317,364,771.61|79.42%|
|exceptional gains and losses (RMB)|||||
|Net cash generated from/used in operating|2,556,861,915.52||1,800,734,718.71||
|||349,174,873.68||41.99%|
|activities (RMB)|||||
|Basic earnings per share (RMB/share)|1.28|0.49|0.35|265.71%|

China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary)
||||||
|-|-|-|-|-|
|Diluted earnings per share (RMB/share)|1.28||0.35||
|||0.49||265.71%|
|Weighted average return on equity (%)|||||
||7.24%|6.79%|2.18%|5.06%|
||30 June 2019|31 December 2018||Change (%)|
|Total assets (RMB)|151,736,666,169.08||||
|||128,018,084,415.68||18.53%|
|Equity attributable to the listed|32,618,869,690.71||||
|||30,760,475,412.93||6.04%|
|company’s shareholders (RMB)|||||

3. Shareholders and Their Holdings as at 30 June 2019
Unit: share
||||||||
|-|-|-|-|-|-|-|
|||||Number of preferred|||
|Number of ordinary||||shareholders with|||
|||33,304|||0||
|shareholders||||resumed voting rights (if|||
|||||any)|||
|Top 10 shareholders|||||||
||||||Shares in pledge or frozen||
|Name of|Nature of|Shareholding|||||
||||Number of shares|Restricted shares|||
|shareholder|shareholder|percentage|||Status|Shares|
|ChinaMerchantsInvestmentDevelopmentCompanyLimited|Foreign legalperson|64.06%|1,148,648,648|1,148,648,648|||
||||||-|-|
|ChinaMerchantsGangtongDevelopment(Shenzhen) Co.,Ltd.|State-ownedlegal person|20.68%|370,878,000|0|||
||||||-|-|
|BroadfordGlobal Limited|Foreign legalperson|3.08%|55,314,208|0|||
||||||-|-|
|CMBLSA REFTIFTEMPLETON|Foreign legalperson|1.97%|35,386,543|0|||
||||||Unknown||

China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary)
|||||||
|-|-|-|-|-|-|
|ASIAN GRWFD GTI 5496||||||
|National SocialSecurity FundPortfolio 101|Other|0.17%|3,000,001|0||
||||||Unknown|
|NORGESBANK|Foreign legalperson|0.16%|2,802,863|0||
||||||Unknown|
|ChinaMerchantsSecurities (HK)Co., Ltd.|State-ownedlegal person|0.14%|2,483,449|0||
||||||Unknown|
|Mai Shuqing|Domesticnatural person|0.13%|2,376,747|0||
||||||Unknown|
|VanguardEmergingMarkets StockIndex Fund|Foreign legalperson|0.09%|1,535,216|0||
||||||Unknown|
|Shen Huailing|Domesticnatural person|0.08%|1,500,149|0||
||||||Unknown|
|||China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a wholly-owned subsidiary of||||
|Related or acting-in-concert||||||
|||Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China||||
|parties among the shareholders||||||
|||Merchants Investment Development Company Limited. The Company does not know whether the||||
|above||||||
|||other unrestricted shareholders are related parties or not.||||
|Shareholders involved in||||||
|securities margin trading (if||N/A||||
|any)||||||

4. Change of the Controlling Shareholder or the Actual Controller in the Reporting Period Change of the controlling shareholder in the Reporting Period:
□ Applicable√ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable√ Not applicable
The actual controller remained the same in the Reporting Period.
China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary) 5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of thisReport’s approval or were due but could not be redeemed in full? No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
(1) External Environment Analysis
During the first half of 2019, the global economy facedced downside risks with developed economies growing at a slower pace and the growth of emerging and developing economies being constrained. Currently, international multilateral trading system is confronted by challenges; trade protectionism has cast uncertainties over the outlook of global economy; and global supply chain was disrupted by tension caused by escalating trade frictions to a certain extent, leading to weak global economic growth momentum. According to the statistics set out in the latest “World Economic Outlook” report published by the International Monetary Fund (IMF) in July 2019, the global economic growth rate of 2019 was expected to be3.2%, down by 0.4 percentage point as compared to that in 2018, among which, developed economies and emerging markets and developing economies grew at1.9% and4.1% respectively, down by 0.3 and 0.4 percentage point as compared to those of 2018, respectively. Total global trade volume (including goods and services) in 2019 was predicted to grow by2.5%, representing a decrease of 1.2 percentage points as compared to that of 2018.
China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary) During the first half of 2019, the Chinese economy has been progressing steadily with changes in general. The Gross Domestic Product (GDP) for the first half of the year grew by6.3% year-on-year, down by 0.5 percentage point as compared with the corresponding period last year. The continuous support of a series of policies and measures has contributed to the stable growth of foreign trade in China. According to the statistics published by the Customs,China’s total foreign trade of import and export value amounted to RMB14.67 trillion during the first half of the year, representing an increase of3.9% as compared to the corresponding period last year, among which the total export value was RMB7.95 trillion, representing an increase of6.1% year-on-year; while import value totalled RMB6.72 trillion, representing an increase of1.4% year-on-year.
Under the influence of global economic slowdown and trade frictions, global trade growth declined and port business in China also grew at a slightly lower pace. According to the statistics published by the Ministry of Transport, the container throughput handled by PRC ports totalled 127 million TEUs during the first half of 2019, representing an increase of5.1% year-on-year while the container throughput handled by PRC ports of significant scale was 121 million TEUs in the first half of 2018, representing a growth of5.4% compared with the same period last year.
(2) Port Business Review
During the first half of 2019, theCompany’s ports handled a total container throughput of 55.10 million TEUs, up by2.2% year-on-year, among which the ports in Mainland China contributed container throughput of 41.06 million TEUs, indicating an increase of2.4% year-on-year, TheCompany’s operations in Hong Kong and Taiwan contributed an aggregate container throughput of 3.55 million TEUs, representing a decrease of4.7% year-on-year, mainly attributable to the impact of restructuring of terminal business. A total container throughput handled by theCompany’s overseas ports grew by4.0% year-on-year to 10.49 million TEUs. Bulk cargo volume handled by theCompany’s ports decreased by7.6% year-on-year to 243 million tonnes, of which theCompany’s ports in Mainland China handled a total bulk cargo volume of 240 million tonnes, representing a decrease of8.0% year-on-year; theCompany’s overseas ports handled a total bulk cargo volume of 3 million tonnes, representing an increase of37.4% year-on-year.
(3) Implementation of business plan during the reporting period
China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary) During the reporting period, facing the pressure from slowdown of global economic growth, the Company persistently upheld the strategic principle of “aiming at achieving the vision, while grasping instant opportunities, leveraging on technologies and embracing changes”, and focused on the “Project of Improving Quality and Efficiency” as a pivot. By conducting scientific researches on the changes in market conditions, the Company pushed forward the integration of domestic ports across various cities simultaneously and made great efforts in expanding overseas ports network in response to the adjustments of the international industrial landscape, at the same time accelerated integration and development internally and strengthened synergic cooperation externally, thereby enhancing professional capabilities and improving risk management, and various tasks have achieved positive effect in the development of its homebase ports,M&A integration, overseas expansion, comprehensive development, innovative development, as well as operation management.
(4) Year-on-Year Changes in Key Financial Data
Unit: RMB
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|-|-|-|-|-|
||H1 2019|H1 2018|Change (%)|Main reason for change|
|Operating revenue|5,834,353,421.33|4,672,338,040.72|||
||||24.87%|-|
|Cost of sales|3,608,020,695.91|2,614,461,218.38||The adding of subsidiary to the|
||||38.00%||
|||||consolidation scope of the Current Period|
||647,244,718.36|497,420,738.23||The adding of subsidiary to the|
|Administrative expense|||30.12%||
|||||consolidation scope of the Current Period|
|Finance costs|873,109,624.88|724,062,144.53|||
||||20.58%||
||2,017,970,750.16|376,500,021.27||Income tax on the compensation income|
|Income tax expense|||||
||||435.98%|from the transfer of land in Qianhai for|
|||||readjustment|
|R&D expense|60,018,835.29|48,063,815.62|24.87%||
|Net cash generated|2,556,861,915.52|1,800,734,718.71|||
|||||The adding of subsidiary to the|
|from/used in operating|||41.99%||
|||||consolidation scope of the Current Period|
|activities|||||
|Net cash generated|73,786,701.24|-13,411,126,400.10|||
|||||A decline in payments for investment and|
|from/used in investing|||100.55%|for the acquisition of subsidiaries and other|
|activities||||business units|

China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary)
||||||
|-|-|-|-|-|
|Net cash generated|-2,366,244,781.51|11,564,970,146.77|||
|||||A decline in borrowings obtained and a rise|
|from/used in financing|||-120.46%||
|||||in loan repayments|
|activities|||||
|Net increase in cash and cash|244,903,144.44|-67,898,366.77|||
|||||A rise in net cash generated from operating|
||||460.69%||
|equivalents||||activities|

2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the Last Accounting Period
On 7 December 2018, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No. 21 - Lease. The Company, in accordance with the requirements of Ministry of Finance, implemented the new lease standard from 1 January 2019. For details, see Announcement on Changes in Accounting Policies (Announcement No. 2019-031) published by the Company on http://www.cninfo.com.cn dated 30 March 2019.
On 30 April 2019, the Ministry of Finance revised and issued the Format of Financial Statements for General Enterprises in 2019, making amendments to the format of financial statements. The Company has adopted these amendments, starting with its financial statements for the half year ended 30 June 2019. For further information, please refer to the Announcement No. 2019-063 on Changes to the Accounting Policies disclosed by the Company on http://www.cninfo.com.cn dated 31 August 2019.
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting Period
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Interim Report 2019 (Summary) (3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period
The Company started to consolidate the financial statements of CMPort Holdings from December 2018, and adjusted in this Report the data of the same period of last year in the comparative financial statements according to the rules governing business combinations under common control. On 3 February 2019, the capital increase to Zhanjiang Port was completed, and theCompany’s interest in Zhanjiang Port has increased to58.3549%. Therefore, Zhanjiang Port has since been included in the scope of theCompany’s consolidated financial statements.
For and on behalf of the Board Bai Jingtao
Legal representative of China Merchants Port Group Co., Ltd. Dated 31 August 2019