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HK Bourse: Announcement From Xiamen International Port Co. Ltd. -8-

28 Aug 2017 12:23 am
 
 
 
    terminals of this column contain the operating figures of bulk/general cargo of berth No. 2 of Dongdu Terminal, berths No. 
    20 and No. 21 of Dongdu port area, berths No. 1 to No.3 of Haicang port area, berths No. 8, No. 20 and No.21 of Haicang 
    port area. 
 
*   Since Songyu Terminal was a terminal controlled and operated, directly or indirectly, by the Group and Xiamen Terminal 
    Group, its relevant operating figures was 100% calculated into the port business. 
 
 
    Xiamen Port Group Shihushan Terminal Company Limited ("Shihushan Terminal"), Xiamen Port Haiyi Terminal Co., Ltd. 
    ("Haiyi Terminal") and Haiyu Terminal have been incorporated into the Group at the end of November 2016. Therefore, the 
    relevant operating figures of the above three terminals were included in this report correspondingly. 
 
 
    Since 20 November 2012, the Group has leased and operated Fuzhou Zhongying Terminal from Zhongying Gangwu for 
    operating its container and general cargo loading and unloading business, as well as its port-related comprehensive logistics 
    business. 
 
 
The Group's bulk/general cargo business increased significantly as compared with the first half of 
2016, which was mainly due to the inclusion of the business volume figures relating to coal and 
iron ore businesses of these terminals in the business figure of bulk/general cargo business in the 
first half of this year as result of incorporation of Shihushan Terminal, Haiyi Terminal and Haiyu 
Terminal into the Group at the end of 2016; excluding this factor, the throughput of bulk/general 
cargo business of the Group increased by 4.7% in the first half as compared with the same period of 
last year, mainly due to the significant growth in the steel, grain and copper concentrates businesses 
in the first half as compared with the same period of last year. 
 
Ancillary Value-added Port Services 
 
During the reporting period, the ancillary value-added port services of the Group, mainly including 
shipping agency, tallying, tugboat-assisted berthing and unberthing and port-related logistics 
services, have maintained a steady development on the whole. Of which, the shipping agency 
business recorded light decrease in its share in the market of public vessel agency of container 
liners due to the effect of shipping companies' alliances and service homogeneity, while the 
business volume and operating efficiency improved as compared to the same period of last year. 
The combination of tallying business and new technologies has been continuously deepened, the 
business model has been innovated constantly to adapt to the market changes and the new profit 
growth point has been gradually fostered and developed. The in-port operation of the tugboat- 
assisted berthing and unberthing business in the first half increased slightly as compared with the 
same period of last year, while the out-of-port business remained flat as compared with the same 
 
                                                              17 
period of last year. The two newly constructed tugs had been put into operation in the port in May 
2017, while another two new tugs are expected to arrive at the port by the end of this year. The 
port-related logistics business remained stable in the first half of the year, the traditional warehouse 
storage and on-site packaging have made a breakthrough in transformation and upgrading, and the 
export supervised warehouse of Haicang has been approved by the customs. 
 
Trading Business of Merchandise 
 
In the first half of 2017, the Group operated its merchandise trading business by closely adhering to 
the operation concept of "Promoting Port with Trade, Driving Trade with Port and Combination of 
Port and Trade", and through exploring the opportunities, strictly controlling the risks and steadily 
promoting the business, it built successful cooperation with the relevant coal groups and the key 
shipping companies in China, innovated and implemented the mode of coal container procurement 
and distribution, and enlarged the scale of combination of port and trade, and at the same time 
created the considerable cargo sources for the Group and enhanced the terminal throughput of 
the Group. Moreover, by leveraging on the development of transshipment trade and cross-border 
e-commerce business, the Group set up a relevant company in Hong Kong in the first half of the 
year for promoting the development diversification of trading business in a prudent way. 
 
FINANCIAL REVIEW 
 
Revenue 
 
Revenues of the Group increased by approximately 55.55% from approximately 
RMB3,872,346,000 (restated) for the six months ended 30 June 2016 to approximately 
RMB6,023,250,000 for the six months ended 30 June 2017. The increase was mainly due 
to the increase in revenues from the trading business of merchandise and container loading and 
 
unloading and storage business of the Group. 
 
Revenue by business sector 
 
Business                                           Six months ended 30 June 
                                                         2017             2016 
                                                    (RMB'000)                                 Increase 
                                                                    (RMB'000) 
                                                                      (Restated) 
 
Container loading and unloading and 
                                                         920,837 
  storage business                                                         738,648            24.67% 
Bulk/general cargo loading and 
                                                         294,248 
  unloading business                                                       283,995              3.61% 
                                                         398,484 
Ancillary value-added port services                                        397,181              0.33% 
Manufacturing and selling of 
                                                          155,414 
  building materials                                                       145,435             6.86% 
                                                        4,254,267 
Merchandise trading business                                             2,307,087            84.40% 
 
                                                        6,023,250 
Total                                                                    3,872,346            55.55% 
 
 
                                                   18 
The major reasons for the changes in the revenue of each business sector for the six months ended 
30 June 2017 compared with the corresponding period of last year are as follows: 
 
1. The revenue of container business of the Group has increased by approximately 24.67% for 
   the six months ended 30 June 2017, which was mainly caused by the consolidation of XHICT 
   in November 2016 and consolidations of Xinhaida Terminal and XICT in 2017. This led 
   to the increase in the revenue of the container loading and unloading and storage business 
   correspondingly; 
 
2. The bulk/general cargo loading and unloading business volume slightly increased compared to 
   the same period of 2016 excluding the impact on the figures for the two years from business 
   consolidation of Shihushan Terminal, Haiyi Terminal and Haiyu Terminal, which was resulted 
   from the commencement of operating activities at Hailong Terminal this year. 
 
3. The throughput of Xiamen port increased in this period, which led to the increase in the revenue 
   of the ancillary value-added port services of the Group; 
 
4. Due to the price increase in concrete, the revenue of the manufacturing and selling of building 
   materials business showed an upward trend in this period; and 
 
5. The Group expanded the scale of trading business, which led to a significant increase in the 
   revenue of the trading business of merchandise such as coal, steel, chemical products and 
   wastepaper. 
 
Cost of Sales 
 
Cost of sales of the Group increased by approximately 63.38% from approximately 
RMB3,338,778,000 (restated) for the six months ended 30 June 2016 to approximately 
RMB5,454,853,000 for the six months ended 30 June 2017. The increase was primarily due to the 
increases in the cost of inventories sold, transportation and employee benefit cost. 
 
   Cost of inventories sold of the Group increased by approximately 81.70% from approximately 
    RMB2,425,282,000 (restated) for the six months ended 30 June 2016 to approximately 
    RMB4,406,704,000 for the six months ended 30 June 2017. The increase was mainly due to the 
    Group's expansion of the scale of trading business and the increase in the volume of the trading 
    business of merchandise, which led to the corresponding increase in cost. 
 
   Transportation and labour services outsourcing cost of the Group increased by approximately 
    21.18% from approximately RMB325,022,000 (restated) for the six months ended 30 June 2016 
    to approximately RMB393,861,000 for the six months ended 30 June 2017. The increase was 
    mainly due to the consolidations of XHICT in November 2016, Xinhaida Terminal and XICT in 
    2017. 
 
Other (Losses)/Gains -- Net 
 
Other (losses)/gains -- net of the Group increased by approximately 17,653.20% from a loss 
position with an amount of approximately RMB1,158,000 for the six months ended 30 June 
2016 to a gain position with an amount of approximately RMB203,266,000 for the six months 
ended 30 June 2017. This was due to the investment income of RMB200, 205,000 gained from 
the consolidation of XICT, of which, attributable to owners of the Company amounted to 
RMB119,622,000. 
 
 
 
 

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