Xiamen International Port : SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

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廈 門 國 際 港 務 股 份 有 限 公 司

XIAMEN INTERNATIONAL PORT CO., LTD*

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 3378)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rules 13.09(2)(a) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The following announcement was released by Xiamen Port Development Co., Ltd, a subsidiary of Xiamen International Port Co., Ltd, whose A shares were listed on the Shenzhen Stock Exchange. The financial statements of Xiamen Port Development Co., Ltd for the six months ended 30 June 2020 were not audited, and have been prepared in accordance with the generally accepted accounting principles of the People's Republic of China (the "PRC").

By order of the Board

Xiamen International Port Co., Ltd

Cai Changzhen

Company Secretary

Xiamen, the PRC, 17 August 2020

As at the date of this announcement, the executive Directors are Mr. Cai Liqun, Mr. Chen Zhaohui, Mr. Lin Fuguang and Mr. Chen Zhen; the non-executive Directors are Mr. Chen Zhiping, Mr. Fu Chengjing, Mr. Huang Zirong and Ms. Bai Xueqing; and the independent non-executive Directors are Mr. Liu Feng, Mr. Lin Pengjiu, Mr. You Xianghua, Mr. Jin Tao and Mr. Ji Wenyuan.

• For identification purpose only

SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

Stock code: 000905

Stock name: Xiamen Port

Ann no.: 2020-31

SUMMARY OF 2020 INTERIM REPORT

OF XIAMEN PORT DEVELOPMENT CO., LTD

1. IMPORTANT

This interim report summary is extracted from the full text of interim report. Investors who wish to understand the details on the operating results, financial position and future development plan of the Company should carefully read the full text of interim report on such media designated by China Securities Regulatory Commission.

All the directors attended the board meeting for the reviewing of the interim report.

Notice of non-standard audit opinions □ Applicable √ Not applicable

The plan on distribution of profit on ordinary shares or the plan on capitalization of capital reserve during the reporting period reviewed by the board of directors

• Applicable √ Not applicable

The Company planned not to distribute cash dividend and bonus, and not to capitalize capital reserve.

The plan on distribution of profit on preferred shares during the reporting period reviewed and passed by the board of directors

□ Applicable √ Not applicable

2. GENERAL INFORMATION OF THE COMPANY

2.1 Company Profile

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

Stock name	Xiamen Port		Stock code		000905
Stock exchange for	Shenzhen Stock Exchange
listing
Contact person and	Secretary to the board of directors		Representative for securities affairs
contact way
Name	Cai Quansheng			Zhu Lingling
Address of office	20/Floor, Port Building, 31 Donggang		20/Floor, Port Building, 31 Donggang
North Road, Huli District, Xiamen		North Road, Huli District, Xiamen
Telephone	0592-5826220				0592-5826220
E-mail	[e-mail]			[e-mail]

2.2 Key Financial Data and Financial Indicators

Whether retroactive adjustments or restatements would be made by the Company to the accounting data for the previous years

□ Yes √ No

		The same period of last	Increase/decrease
		during the reporting
	The reporting period	year
	period as compared
			with the same period of
			last year
Operating income (RMB)	6,675,385,940.55	6,712,081,721.79	-0.55%
Net profit attributable to the
shareholders of the listed	48,172,326.47	56,548,898.60	-14.81%
company(RMB)
Net profit attributable to the
shareholders of the listed	37,633,821.99	12,133,275.39	210.17%
Company (after deducting
non-recurring profit/loss (RMB)
Net cash flow generated from	139,533,848.01	121,477,016.74	14.86%
operating activities(RMB)
Basic earnings per share	0.0790	0.1065	-25.82%
(RMB/share)
Diluted earnings per	0.0790	0.1065	-25.82%
share(RMB/share)
Weighted average return rate on	1.41%	2.08%	-0.67%
net assets (%)
			Increase/decrease at
		At the end of last year	the end of the reporting
	At the end of the	period as compared
	reporting period		with the end of last
			year

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

Total assets (RMB)	9,814,900,843.33	9,769,503,715.06	0.46%
Net assets attributable to the
shareholders of the listed company	3,443,841,053.75	3,404,311,387.47	1.16%
(RMB)

2.3 Number of Shareholders of the Company and Shareholdings

Unit: share

Total number of ordinary

Total number of preferred

48,250

shareholders with voting rights

0

shareholders at end of the

resumed at end of the reporting

reporting period

period (if any)

Shareholding of the top ten shareholders

Number of

Position pledged

or frozen

Name of shareholder

Nature of

Proportion of

Total number of

shares held

Number

shareholder

shareholding

shares held

subject to

Status of

of

lock-up

shares

shares

Xiamen International Port

State-owned

Co., Ltd. (

廈門國際港務

61.89%

386,907,522

94,191,522

0

股份有限公司)

legal person

Zhou Lanjin

Domestic

0.21%

1,292,900

natural person

Chen Zifan

Domestic

0.19%

1,202,793

natural person

Ning Shen

Domestic

0.17%

1,046,499

natural person

Jiang Weipeng

Domestic

0.16%

1,000,000

natural person

Yunnan

International

Other

Trust Co., Ltd.-Yuansheng

Hengrui

No.

21

Accumulative Fund Trust

0.16%

1,000,000

Plan（雲南國際信託有限

公司－源盛恒瑞 21

號集

合資金信託計劃）

Vanguard Investment

Foreign legal

Australia Ltd. - Vanguard

person

Emerging Markets Stock

Index Fund (Exchange)

0.12%

739,716

(領航投資澳洲有限公司

－領航新興市場股指基

金（交易所）)

Aeon Life

Insurance

Other

Company

Ltd.-

Dividend

0.12%

733,800

Insurance

Products

(百年

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

人壽保險股份有限公司
－分紅保險產品)
Pan Jun	Domestic	0.11%		700,002
	natural person
Lin Yiqi	Domestic	0.11%		680,796
natural person
	1. Xiamen International Port Co., Ltd. is the only one shareholder holding more
	than 5% (including 5%) of the Company's shares, which is the controlling
	shareholder of the Company, the connected nature is controlling parent
Explanation of the	company, the nature of the shareholding is state-owned legal person shares;
connected relationships or	2. The other top ten shareholders of the Company have no connected relation
concerted actions of the	with the controlling shareholder of the listed company, and they are also not the
above shareholders	concerted action person defined under "Measures for the Administration of the
	Acquisition of Listed Companies", either;
	3. It is unknown that whether the connected relationship or concerted action
	relationship exists or not among other shareholders holding tradable shares.
	1. Zhou Lanjin holds 1,144,300 shares of the Company through Credit
	Transactions Guarantee Securities Accounts;
	2. Chen Zifan holds 1,190,793 shares of the Company through Credit
Explanation of	Transactions Guarantee Securities Accounts;
shareholders involved in	3. Jiang Weipeng holds 1,000,000 shares of the Company through Credit
securities margin trading	Transactions Guarantee Securities Accounts;
business (if any)	4. Pan Jun holds 660,002 shares of the Company through Credit Transactions
	Guarantee Securities Accounts;
	5. Lin Yiqi holds 680,796 shares of the Company through Credit Transactions
	Guarantee Securities Accounts.

2.4 Changes in Controlling Shareholder or Actual Controller

Changes in controlling shareholder during the reporting period

• Applicable √ Not applicable

There is no change in controlling shareholder during the reporting period.

Changes in actual controller during the reporting period

• Applicable √ Not applicable

There is no change in actual controller of the Company during the reporting period.

2.5 Number of Preferred Shareholders of the Company and the Shareholding of Top Ten Preferred Shareholders

□ Applicable √ Not applicable

There is no shareholding of preferred shareholders during the reporting period.

2.6 Corporate Bonds

Whether there are any corporate bonds of the Company offered publicly and listed on stock exchanges which have not yet become due or have become due but not been fully settled as at the approval date of the interim report?

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

Yes

2.6.1 Basic information on corporate bonds

			Abbreviation of	Code of			Balance of	Interest
	Name of bonds	Issue date	Maturity date	bonds
	bonds	bonds	rate
					(RMB'0,000)
Public	issuance	of corporate
bonds to qualified investors by	16 Xiagang 01	112407	27 June 2016	27 June 2021	9,000	3.25%
Xiamen	Port	Development
Co., Ltd. in 2016 (Phase I)
Public	issuance	of corporate
bonds to qualified investors by	16 Xiagang 02	112465	25 October 2016	25 October 2021	11,330	3.25%
Xiamen	Port	Development
Co., Ltd. in 2016 (Phase II)

2.6.2 Financial indicators at the end of the reporting period

				Unit: RMB'0,000
				Increase/decrease at the
Item		At the end of this	At the end of last year	end of the reporting
	reporting period	period as compared with
				the end of last year
Debt-to-asset ratio		53.77%	54.53%	-0.76%
Item		The reporting period	The same period of last	Increase/decrease during
			year	the reporting period as
				compared with the same
				period of last year
EBITDA	interest	5.25	5.42	-3.14%
coverage multiple

3. DISCUSSION AND ANALYSIS OF OPERATIONS

3.1 Brief Introduction of Operating Status during the Reporting Period

Whether the Company is required to comply with the special industry disclosure requirements?

No

In the first half of 2020, the outbreak of COVID-19 and the world economic recession bring unprecedented impact on economy of our country. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, the whole country worked together to effectively control the pandemic and lose no time to promote the resumption of work and production. The economy of our country decreased first and then increased and the economic growth in the second quarter is from negative to positive. Main indicators showed restorative growth and the economic operation resuscitated somewhat. Facing difficult market environment and the pressure of production and operation, the Company's Board and management adhered to follow the general principle of making progress while working to keep performance stable and make overall plans for pandemic prevention and control as well as operation and development.

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

Orderly promote various operation and management and strive to achieve comprehensive improvement for operation and management in accordance with the development ideas of "focusing on party construction, strengthening main business, boosting integration, sophisticating management, strengthening talent, striving to innovate and ensuring safety".

During the reporting period, the Company implemented the new revenue standards and realized operating income of RMB6,675.3859 million, decreased by 0.55% as compared with the same period of last year. According to the same caliber of the same period of last year, the Company realized operating income of RMB7,789.7922 million, increased by 16.06% as compared with the same period last year, which was mainly due to the increase in trading business income. The net profit attributable to shareholders of the listed company was RMB48.1723 million, decreased by 14.81% as compared with the same period of last year, which was mainly due to the impact of COVID-19 outbreak and the decrease in the revenue of all other business except the trading business. The total profit decreased year on year and the net profit attributable to parent company decreased year on year synchronously.

1. At the end of the reporting period, the monetary funds decreased by 49.63% as compared with the beginning of the period, which was mainly due to the proceeds raised from the non-public issuance of shares of RMB600 million at the end of last year was put into use during the reporting period.

1. At the end of the reporting period, the trading financial assets increased by 83.09% as compared with the beginning of the period, which was mainly due to the futures was affected by the fluctuation of market prices during the reporting period.
2. At the end of the reporting period, the accounts receivable increased by 55.17% as compared with the beginning of the period, which was mainly due to the increase in the trading business and the increase in business using open account settlement during the reporting period.
3. At the end of the reporting period, the receivable accounts financing increased by 89.34% as compared with the beginning of the period, which was mainly due to the increase in the receipt of bank acceptance bills from trading business as compared with the beginning of the year.
4. At the end of the reporting period, the dividends receivable decreased by 32.84% as compared with the beginning of the period, which was mainly due to dividends received from certain associates during the reporting period.
5. At the end of the reporting period, the other current assets increased by 38.63% as compared with the

beginning of the period, which was mainly due to the increase in deductible input tax against value-added tax payable during the reporting period.

7. At the end of the reporting period, other non-current assets increased by 142.45% as compared with the beginning of the period, which was mainly due to the increase of advance for engineering projects during the reporting period.

8. At the end of the reporting period, short-term borrowings decreased by 100% as compared with the beginning of the period, which was mainly due to the repayment of bank loans during the reporting period.

1. At the end of the reporting period, trading financial liabilities increased by 11892.95% as compared with the beginning of the period, which was mainly due to future foreign exchange settlement being affected by market price fluctuation during the reporting period.
2. At the end of the reporting period, notes payable increased by 60.98% as compared with the beginning of the period, which was mainly due to the optimization of settlement method of the trade business, which resulted in the increase in payments by bill settlement during the reporting period
3. At the end of the reporting period, employee remuneration payable decreased by 37.59% as

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

compared with the beginning of the period, which was mainly due to the payment of the annual bonus for the previous year during the reporting period.

1. At the end of the reporting period, other payables increase by 61.07% as compared with the beginning of the period, which was mainly due to the increase of current accounts with Xiamen International Port Co., Ltd. during the reporting period.
2. During this report period, other income increased by 98.46% as compared with the same period of the previous year, which was mainly due to the increase of the government subsidy received during the reporting period.
3. During the reporting period, the investment income decreased by 98.13% as compared with the same period of the previous year, which was mainly due to : (1) the transfer of 35% of share equity of Sanming Port Construction Co., Ltd. (三明港務建設有限公司) by Sanming Port Development Co., Ltd. (三 明港務發展有限公司), a subsidiary of the Company as at the same period of the previous year; and (2) the decrease in investment income in futures arising from its market price fluctuation during the reporting period.
4. During the reporting period, the income of fair value changes decreased by 163.24% as compared

with the same period of the previous year, which was mainly due to the decrease in fair value of futures at the end of this period arising from its market price fluctuation during the reporting period.

1. During the reporting period, the credit impairment loss increased by 890.03% as compared with the same period of the previous year, which was mainly due to the increase in provision for bad debts of accounts receivable of trading business during the reporting period.
2. During the reporting period, the asset impairment loss decreased by 145.08% as compared with the same period of the previous year, which was mainly due to the increase in the market price of part of the inventories of trading business, the disappearing of the effect of impairment and the decrease in provision for inventory impairment during the reporting period.
3. During the reporting period, the income from disposal of assets decreased by 96.40% as compared with the same period of the previous year, which was mainly due to the income from disposal of assets generated from the asset valuation appreciation because of the investment in kind in a joint venture by Xiamen Port Shipping Co., Ltd., a subsidiary of the Company, at the same period of the previous year.
4. During the reporting period, the non-operating incomes decreased by 67.72% as compared with the same period of the previous year, which was mainly due to the decrease in the received liquidated damages during the reporting period.
5. During the reporting period, the non-operating expenses decreased by 89.90% as compared with the same period of the previous year, which was mainly due to the provision for expected liabilities from the case involved in Xiamen Port Logistics Co., Ltd., a subsidiary of the Company, at the same period of the previous year.
   21. During the reporting period, the net cash flows from investment activities increased by 46.05% as

compared with the same period of the previous year, which was mainly due to the decrease in cash paid for the acquisition and construction of fixed assets, intangible assets and other long-term assets during the reporting period.

1. During the reporting period, the net cash flows from financing activities decreased by 243.91% as compared with the same period of the previous year, which was mainly due to the decrease in cash received from borrowings and the increase in cash paid for debt repayment during the reporting period.
2. During the reporting period, the net increase in cash and cash equivalents decreased by 401.82% as

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

compared with the same period of the previous year, which was mainly due to the decrease in the net cash flows from financing activities during the reporting period.

During the reporting period, the Company focused on carrying out the following tasks:

1. Adhere to the leadership of party building and better shoulder its responsibilities;
2. Consolidate and boost up the core business, expand new businesses and new markets;
3. Promote integration and coordination, and exert platform effect;
4. 1. Speed up the integration of bulk cargo and logistics resources
   2. Accelerate the integration of trade and logistics and the combination of port and trade
   3. Improve business synergy between sectors to achieve mutual beneficial and the win-win cooperation
5. Reinforce internal management to improve quality, reduce costs and increase efficiency;
6. Strengthen talent construction and stimulate development momentum;
7. Technological reform and innovation, green and efficient development;
8. Pay close attention to safety and environmental protection, and build a firm bottom line of production.

3.2 Related Matters involving the Financial Reports

3.2.1 Description of changes in accounting policies, accounting estimates and accounting methods as compared with the financial reports in the previous accounting period

• Applicable □ Not applicable

The Ministry of Finance issued the revised Accounting Standards for Business Enterprises No. 14 - Revenue (Cai Kuai [2017] No. 22) in 2017, and the Company has implemented the above new revenue standard since 1 January 2020. According to the provisions on the connection issues, for enterprises that implement this standard for the first time, they shall adjust the retained earnings and the amounts of other related items in the financial statements at the beginning of the year (in which the new revenue standard is implemented) based on the cumulative effect of implementing this standard for the first time, whereby the information related to comparable period shall not be adjusted. The adjustment item involved in by the Company is the reclassification of the beginning balance of advance accounts RMB353,489,290.31 to contract liabilities, the opening balance of advance accounts of 35,384,858.95 was reclassified to other current liabilities, and the opening balance of accounts receivable of 2,900,913.93 was reclassified to contract assets.

3.2.2 Explanation of retrospective restatement for adjustment of significant accounting errors occurred during the reporting period

□ Applicable √ Not applicable

During the reporting period, there is no retrospective restatement for adjustment of significant

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SUMMARY OF 2020 INTERIM REPORT OF XIAMEN PORT DEVELOPMENT CO., LTD

accounting errors occurred in the Company.

3.2.3 Explanation of change in the scope of consolidated statement in comparison with the financial report of the previous accounting period

• Applicable √ Not applicable

Name of company	Net assets at the end of	Net Income during	Form of establishment
	the period	this period
Xiamen Xinrunyan New Material Co., Ltd.	3,262,921.96	262,921.96	New establishment
(廈門欣潤岩新材料有限公司)

9