Interim Report 2020 Contents

Section 1 Section 2 Section 3

Overview of Opportunities ’s Port Development and Challenges Industry and in 1H2020 Section 1 Overview of China’s Port Industry and Port of Tianjin China Throughput and Trade Information

Throughput at Major in China China Total Trade Values Million Million Tonnes US$Bn TEUs

4,623 4,577 16,000 250 261 4,500 4,104 237 13,300 270 14,000 11,830 12,644 4,000 3,685 11,464 218 240 12,000 210 3,500 3,000 10,000 180 2,167 127 150 2,500 2,030 8,000 6,713 6,752 120 120 2,000 6,000 1,500 90 1,000 4,000 60 500 2,000 30 0 0 0 2016 2017 2018 2019 1H2019 1H2020 2016 2017 2018 2019 1H2019 1H2020 Total Cargo Container Source: Ministry of Transport of the PRC, National Bureau of Statistics Source: General Administration of Customs, PRC

China Export Value China Import Value

US$Bn US$Bn 3,000 2,500 2,487 2,136 2,078 2,500 2,277 2,263 2,097 2,000 1,841 1,587 2,000 1,500 1,500 1,172 1,099 995 931 1,000 1,000 500 500

0 0 2015 2016 2017 2018 1H2019 1H2020 2016 2017 2018 2019 1H2019 1H2020

Source: General Administration of Customs, PRC Source: General Administration of Customs, PRC

4 Overview of China’s Key Port Zones

1H2020 Throughput Change vs 1H2019 Total Cargo Container Total Cargo Container (m tonnes) (m TEU) China’s Key Port Zones

Tianjin 240 8.6 1.5% 2.9%

Dalian 168 3.0 -2.2% -31.6%

Tangshan* 319 1.1 0.5% -2.2%

Qingdao 296 10.3 5.3% 0.3%

Yangtze River Delta

Ningbo-Zhoushan 569 13.3 2.0% -4.7%

Shanghai 323 20.1 -10.1% -6.9% Bohai Bay Suzhou 256 2.8 -2.6% -10.8% River Delta Southeast Coastline Pearl River Delta Guangzhou 297 10.8 -0.2% -1.6% Southwest Coastline Shenzhen 114 11.1 -5.3% -10.8%

* Port of includes and Port of Caofeidian Source: Ministry of Transport of the PRC, Chinese port

5 Port of Tianjin’s Industry Ranking

Total Cargo Throughput of China Major Ports+ in 1H2020

600 569 Million Port of Tianjin tonnes grew by 1.5% yoy in 1H2020

400 323 319 297 296 256 244 240

200

- Ningbo - Shanghai Tangshan Guangzhou Qingdao Suzhou Rizhao Tianjin Zhoushan

Container Throughput of China Major Ports+ in 1H2020

30 Million TEUs 20.1 Port of Tianjin 20 grew by 2.9% yoy in 1H2020 13.3 11.1 10.8 10.3 10 8.6 5.3 3.0

- Shanghai Ningbo - Shenzhen Guangzhou Qingdao Tianjin Xiamen Dalian Zhoushan

+ Top 8 ports in China in terms of total cargo throughput and container throughput Source: Ministry of Transport of the PRC

6 Section 2 Tianjin Port Development in 1H2020 Performance Summary

 Total cargo throughput increased 1.4% to 200.82million tonnes (1H2019: 198.04 million tonnes)

 Total container throughput increased 3.1% to 8.572 million TEUs

 Revenue decreased 10.8% to HK$6,323 million

 Gross Profit increased 1.5% to HK$1,466 million

 Profit attributable to shareholders was HK$220 million, representing 19.6% yoy decrease. Basic earnings per share of HK3.6 cents

8 Profit and Loss Information Revenue Segment results HK$6.3 billion (-10.8%) HK$1.5 billion (1.3%)

14.5%15.8% Cargo Handling 26.0% Cargo Handling 22.8% 2,1841,001 382 739 Sales Sales HK$ HK$ 46.3%50.5% 0.2% 73.8% Other Port Ancillary million Other Port 4.4% million 72.8% 6,9853,194 2 1,084 Services 39.2%33.7% Ancillary Services 142 2,353 5,9082,128

Change vs (HK$ million) 1H2020 1H2019 1H2019 Revenue Change vs 6,323 7,086 -10.8% (HK$ million) 1H2020 1H2019 1H2019

- cargo handling 3,194 3,148 1.5% Segment results 1,468 1,449 1.3%

1,955 2,023 -3.3% Non-containerised cargo - cargo handling 1,084 1,029 5.3%

Containerised cargo 1,239 1,125 10.2% - sales 2 19 -87.7% - sales 2,128 2,850 -25.3% - other port ancillary services 382 400 -4.5% - other port ancillary services 1,001 1,088 -8.0%

Change vs Change vs (HK$ million) 1H2020 1H2019 1H2019 (%) 1H2020 1H2019 1H2019 Gross profit 1,466 1,443 1.5% Gross profit margin (1) 23.2% 20.4% +2.8ppt. Operating profit 865 901 -3.9% Note: (1) Gross Profit / Revenue

Profit before income tax 806 828 -2.7% Profit attributable to equity holders of the Company 220 273 -19.6%

9 Cargo Handling Business Review

Container Handling Business

1H2019 1H2020 Million 10 8.57 TEUs 9 8.32 8 7 5.66 6 5 4.12 4 3 2 1 - Throughput (total) Throughput (consolidated)

 The Group achieved total container throughput of 8.572 million TEUs, representing 3.1% increase yoy.

 The average unit price of the container cargo handling business was HK$218.8 per TEU, representing 19.9% decrease yoy. The average unit price denominated in RMB decreased by 15.9%, mainly due to the change in cargo mix, and the change in cargo mix (on a consolidated basis) caused after Tianjin Five Continents International Container Terminal Co., Ltd. became a subsidiary of the Group and was then absorbed and merged by Tianjin Port Container Terminal Co., Ltd.

10 Cargo Handling Business Review (con’t)

Non-containerised Cargo Handling

1H2019 1H2020

Million 250 tonnes 200

150 104.9 108.0 100 74.3 79.9

50

- Throughput (total) Throughput (consolidated)

Total Throughput of Major Types of Non-containerised Cargo Handling Change vs (Million tonnes) 1H2020 1H2019 1H2019 Metal Ore 52.90 46.76 13.1% Coal 28.30 31.54 -10.3% Crude oil 13.19 13.72 -3.9% Steel 5.14 5.99 -14.2% Automobiles 0.66 0.76 -13.2%

 The average unit price of the non-containerised cargo handling business was HK$24.5 per tonne, representing 9.9% decrease yoy. The average unit price denominated in RMB decreased by 5.5% yoy.

11 Financial Position and Cash Flow Information

Financial Position Change vs HK$mn At 30 Jun 2020 At 31 Dec 2019 31 Dec 2019 Total assets 42,979 44,813 -4.1% Total equity 26,347 26,504 -0.6% Total borrowings 11,709 13,433 -12.8% Cash and cash equivalents 7,560 7,475 1.1% Total gearing (%) (1) 44.4 50.7 -6.3ppt. Current ratio 1.2 1.5 -0.3ppt.

Note: (1) Total borrowings / Total equity

Cash Flow HK$mn 1H2020 1H2019 Net cash from operating activities 1,277 1,527 Net cash from investing activities 899 689 Net cash used in financing activities (1,961) (1,836)

12 Section 3 Opportunities and Challenges Challenges and Opportunities

Challenges Opportunities

 Unprecedented economic shock and the  Situated in a geographically increasing trade friction among major advantageous location to grasp the global economies brought about by the development opportunities provided COVID-19 pandemic by national initiatives such as One Belt One Road, Jing-Jin-Ji Integration,  Volatile foreign exchange and interest Xiong’an New Area Construction, etc. rate environment  Stronger central and local  Enhanced environmental protection government support to accelerate consciousness and more stringent the construction of Tianjin to be the regulatory requirements on means of international shipping hub transportation in China  Accelerated development in  Equipped with advanced technology technological innovations such as 5G, IoT, and knowledge to build up an big data and artificial intelligence intelligent and green port

 Shift of global trade centers and  Capable of providing high quality increasing use of cross border e- services through enhanced commerce, change of logistics model efficiency, lower cost and optimized from single-node connection to operations comprehensive value-added supply chain solutions

14 Future Strategies

Positioning Action Plan

 Prioritize container handling business  Optimise non-containerised cargo handling business Sustainable development of  Upgrade and develop logistics port cargo handling, logistics business and related businesses  Promote automation and through the build-up of a intelligence level of the port leading green and intelligent operations hub port  Construct a greener and safer port area  Expand the scale of port tugboat business

 Seek and engage in investments which do not compete with the Exploration of other business of Tianjin Port Co, investment opportunities including overseas business

15 Q&A Disclaimer

This presentation and subsequent discussion may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Tianjin Port Development. These forward-looking statements represent Tianjin Port Development’s expectations or beliefs concerning future events and involve known and unknown risks and uncertainties which could cause actual results, performance or events to differ materially from those expressed or implied in such statements.

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