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HK Bourse: Announcement From Xiamen International Port Co. Ltd. -10-

28 Aug 2017 12:24 am
 
 
 
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30 months and the relevant contract consideration shall be paid directly to the contractor by Gulei 
Port Development pursuant to the contract. For details of the above transaction, please refer to the 
announcement of the Company dated 24 March 2017. 
 
On 15 May 2017, Xiamen Terminal Group and HXC entered into an agreement in relation to 
XICT, pursuant to which Xiamen Terminal Group and HXC have agreed to act in accordance with 
the agreed mechanism with regard to the approval of its special corporate matters by the board 
of directors of XICT for the period commencing on the date of the agreement and ending on 31 
December 2022, unless otherwise extended by the relevant parties prior to expiry. By virtue of and 
in view of the arrangements contemplated under the agreement, XICT shall be accounted for as a 
subsidiary of the Group in accordance with the HKFRS. For details of the above transaction, please 
refer to the announcement of the Company dated 15 May 2017. 
 
On 15 June 2017, the annual general meeting of the Company resolved and approved the 
submission of new application by the Company to the National Association of Financial Market 
Institutional Investors (  ) for the registration of the issue of short- 
term notes in China on a revolving basis with the aggregate maximum principal amount of up to 
RMB2,500,000,000 and the term of each tranche of 365 days commencing from the date of issue 
concerned; the above matters are subject to the approval of, and the completion of the relevant 
registration procedures with, the National Association of Financial Market Institutional Investors. 
For more details of the above matters, please refer to the notice of the Company dated 27 April 
2017 and the announcement of the Company dated 15 June 2017, respectively. 
 
PROSPECT AND OUTLOOK 
 
In general, the domestic and international economic environment in the second half of the year 
will be relatively complex. On the one hand, the market confidence will eventually return as the 
global economic growth is expected to moderately recover after bottoming out last year and the 
manufacturing and trade sectors will also rebound. According to the "Global Economic Prospects" 
report published by the World Bank in June this year, it is forecasted that the global economic 
growth rate will rise to 2.7% in 2017; according to the relevant analysis of National Bureau of 
Statistics of the PRC and the General Administration of Customs of the PRC, the national economic 
operation of China in the first half of the year continued to maintain its steady yet progressive 
development momentum, thus laying a solid foundation for the achievement of full-year anticipated 
goals. On the other hand, as there are still more unstable factors and uncertainties in economic 
operation in the second half of the year, the international anti-globalization thoughts and trade 
protectionism trends have imposed uncertainties on the global economic recovery, which in turn 
may affect the pace of the global economic recovery; affected by the financial deleveraging and 
tighter regulation as well as the restructuring of the real estate market, the national economy 
may face certain callback pressure in the short term, and in the second half of the year, China's 
economic growth may slow down slightly, but it is still expected to achieve the anticipated goals 
for the economic growth for the full year; meanwhile, the impact of the continued deepening of 
the shipping companies' alliances on the port business has gradually been felt. Confronting with 
the complex and evolving economic environment, the Group will strengthen its confidence, always 
focus on cost-efficiency, proactively leverage its overall advantages, flexibly adopt various positive 
marketing strategies and solving measures and enhance the corporate operational efficiency, while 
maximizing its efforts to deliver better returns on investments for all shareholders of the Company. 
 
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Considering the actual circumstances, the Group will focus on the following tasks in the second half 
of the year: 
 
   To deepen the overall marketing. Firstly, the Group will fully leverage on its overall advantages 
    and scale effect, promote the interactive development of its port business and ancillary value- 
    added port services, improve the external overall competitiveness of various businesses and 
    strive to stabilize its market share. Secondly, the Group will reinforce its precision marketing 
    efforts, implement the measure of "One Enterprise, One Strategy" for key customers, and 
    expand various incremental businesses through its precision marketing strategies, such as 
    international trade and domestic trade container transshipment. Thirdly, the Group will seize 
 
    the policy opportunities and boost its principal port business growth by exploring the shipping 
    routes businesses under the "One Belt, One Road" initiative with major shipping companies. 
 
   To explore the cargo sources in hinterlands. Firstly, the Group will facilitate the construction 
    of the hinterlands of cargo sources. The Group will strengthen the project cooperation with 
    major customers and further expand the hinterland of Xiamen port to other areas, such as the 
    Yangtze river basin and Bohai Bay; the Group will flexibly use various methods to consolidate 
    the construction of sub-route ports and land-based ports in line with local conditions, enhance 
    the radiation ability of Xiamen port for its hinterlands and fortify the supporting base of its 
    port cargo sources. Secondly, the Group will explore the basic and premium cargo sources. The 
    Group will leverage the geographical advantages of Hailong Terminal and stabilize and develop 
    the premium cargo sources, such as steel and cereals. In addition, the Group will fully take the 
    advantage of the favorable opportunities brought by the fact that Class II ports approved by 
    the provincial governments are prohibited by the State from being engaged in the coal import 
    business and that Shihushan Terminal and other terminals as Class I ports are not affected by 
    the relevant policies, strive to secure new cargo sources and enlarge the port throughput. 
 
   To enhance the service level. Firstly, the Group will promote the supply-side reform. The 
    Group will strengthen cooperation with the customs and the inspection and quarantine 
    departments, facilitate customs clearance, promote the innovation of business model and 
    cultivate new growth points for its container business. Moreover, the Group will reinforce 
    its service benchmarking and production safety, strictly execute its service commitments and 
    constantly improve its overall service environment and service quality. Secondly, the Group 
    will improve the capability of terminal services. The Group will strengthen the construction of 
    new terminals as well as the upgrading and transformation of the terminals, especially focus 
    on expediting the turning basin extension project of berths No. 1 to No. 3 of Haicang port 
    area, ensure the earlier delivery of the six newly acquired gantry cranes of Songyu Terminal 
    for production and fully leverage the enhanced capability of the two bridge cranes of Songyu 
    Terminal after the completion of the heightening and transformation project, so as to better 
    serve large vessels. 
 
   To promote the construction of green and smart ports. Firstly, the Group will focus on boosting 
    the construction of the smart port demonstration projects. The Group will boost the application 
    of the smart container logistics platform at all terminals and accelerate the implementation of 
    the intelligent gate project (phase II) and the equipment remote control project. Secondly, the 
    Group will reinforce energy conservation and technological transformation. The Group will 
    continue to propel the implementation of the projects for gantry cranes in ports, such as the 
 
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    "Change from Oil to Electricity" project, the "Use of Shore-power Supply for Vessels" project 
    and the "Water Supply for Vessels" project so as to improve the efficiency of port services. 
 
   To intensify the refined management. Firstly, the Group will strengthen the comprehensive 
    budget management, reinforce the budget implementation efforts, increase income while 
    reducing costs, and stringently control costs and manage funds, so as to improve the 
    management performance. Secondly, the Group will promote the capital operation, enhance 
    the investment levels and broaden the financing channels in order to provide effective support 
    for its sustainable development. Thirdly, the Group will improve the internal control, enhance 
    each management system, strengthen the auditing supervision, and strictly implement the risk 
    management, so as to ensure the sound development of its port business. 
 
   Pursuant to the "Options and Rights of First Refusal Agreement" entered into between the 
    Company and Xiamen Port Holding, the Company will actively follow up the progress of the 
    construction works of the relevant terminals of Xiamen Port Holding so that the Board of the 
    Company is able to make appropriate decisions based on the management and operational 
    circumstances at the time. 
 
OTHER INFORMATION 
 
SHARE CAPITAL 
 
The table below sets out the share capital structure of the Company as at 30 June 2017: 
 
Class of shares                                        Number of shares           Proportion (%) 
 
 
 
 
 

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