Summary of Shanghai International Port Group (SIPG)'s 2024 H1 Report

In the first half of the year, SIPG achieved a home port total cargo throughput of 293 million tons, marking a year on year increase of 6.2%. Bulk cargo throughput reached 44.122 million tons, up by 2.5%. Home port container throughput reached 25.508 million TEUs, a growth of 7.5%. Notably, the Yangshan Deep Water Port handled 13.076 million TEUs, representing a 9.9% rise, and accounting for 51.3% of the port's total container throughput. SIPG reported operating revenue of 19.838 billion yuan, a year-on-year increase of 23.13%, and a net profit attributable to shareholders of the listed company of 8.416 billion yuan, up by 14.85% year on year.

SIPG took advantage of the market opportunities presented by a recovering shipping market in the first half of the year. It implemented extensive reforms and achieved historic highs in key production indicators. Financial metrics remained stable, whilst significant projects and reform initiatives progressed steadily, contributing toward the goal of becoming a world-class enterprise. Backed by the collective efforts of all employees, who uphold the New Yangshan Spirit of "With the big picture mindset, taking valiant actions in an ingenious way and  striving for innovation in services in pursuit of excellence," SIPG successfully achieved over half of its annual targets within the first six months.

1. Strengthening the Yangtze River Delta Market: SIPG held regional logistics meetings to enhance competitive collaboration in key areas, and with major clients. A special meeting focused on high-quality development in the Yangtze River Delta was convened to optimize business management of the region. The company encouraged communication, and strengthened business collaboration with ports in the delta. Additionally, a domestic trade sector customer symposium was held to stimulate domestic trade operations.

2. Expanding the Yangtze River Basin Market: A special conference for Yangtze port and shipping enterprises to optimize the function and management of the feeder alliance and service centers was held. This provided significant impetus to the shift from road to water transport. SIPG continued to expand ICT networks, thereby constantly improving management and functional localisation. Sea-rail intermodal transport was further deepened, achieving a container volume of 427,000 TEUs, a 49.5% increase year on year. The share of  collection and distribution by green transport mode grew, with water-to-water transshipment reaching 15.84 million TEUs, up 17.3% year on year, accounting for 62.1% of total transshipments.

3. Achieving Breakthroughs in Key Business Areas: SIPG strengthened cooperation with shipping lines, resulting in continuous growth in the international transshipment business and breakthroughs in coastal relay services. The Yangshan Empty Container Center realised integrated operations, while LCL services steadily grew. The export CLC business also saw a substantial growth.

4. Major Projects Progressing as Planned: The Phase I construction of the Luojing container terminal was completed on schedule and, after passing the final inspection, officially commenced operations in June. Several key milestones were also achieved in the Xiaoyang North project, despite challenges with inclement weather and site conditions. Research on the north-south linkage and optimization plans for the Yangshan Deep Water Port is now underway, and the expansion of the Xiaoyangshan Empty Container Center is progressing smoothly.

5. Ongoing Digital Transformation: SIPG continues to introduce digital technologies to further optimise its production processes and management systems. Improvements in port digitisation include the automation and coordination of a number of operations such as berthing dispacthing and E D/O. We are committed to building a smart port and empowering partners in the port and shipping industrial chain.

6. Diverse Port and Shipping Business Development: Subsidiary JJ Shipping has redoubled efforts to expand in the Southeast Asian market, launching express services to Thailand and Vietnam and continuing to replicate and extend premium products in the region. SIPG is steadily upgrading its presence in the wood pulp business, where business volume remains stable. We have strengthened our efforts on marketing and development of the RORO business in the Yangtze River, registering a 16.5% year-on-year increase in the first half of 2024. The cruise business has rapidly recovered, with the cruise ships "Aden" and "Century Legend" operating regularly, whilst the "Blue Dream Melody" has been relaunched following a retrofit.

7. Significant Progress in Green Port Development: SIPG has continued to increase LNG bunkering volumes and completed China's first green methanol refuelling of a container vessel, enabling Shanghai Port to be one of the few ports globally to provide  SIMOPS ship-to-ship bunkering service to both LNG and green methanol- driven  vessels. MOUs for clean fuel supply was signed with shipping companies, fostering collaboration in green energy industries and new energy facilities. The use of shore power at container terminals has steadily grown, and research on promoting new energy container trucks is underway. International cooperation on green energy and low carbon is progressing, highlighted by a recent strategic cooperation agreement signing ceremony with CATL. According to the agreement, both parties will deepen collaboration in areas such as the construction of green, smart, and zero-carbon ports. This involves joint efforts in energy infrastructure development, transformation towards low-carbon logistics, electrification of vehicles and machinery, digital and smart port upgrades, and the recycling of used batteries, all of which are aimed at advancing the port and shipping industry’s transition to low-carbon energy and sustainable development.

8. Continued Advancement in Smart Port Development: SIPG has reached significant milestones in research projects both at the Shanghai municipal, and national level. Its technological innovation projects were awarded nine gold, nine silver, and two bronze awards at the 7th China (Shanghai) International Invention and Innovation Exhibition. Traditional terminal conversion projects are being consistently optimised, with trial operations becoming increasingly smooth. The heavy smart truck project has expanded its operational scale, initial runs with the collection and distribution centre are promising, and will raise the round-the-clock traffic capacity of the East Sea Bridge.

Appendix: Key Financial Data

Unit: Yuan  Currency: RMB