Tianjin Port Development : 2020 INTERIM REPORT

CORPORATE PROFILE

Tianjin Port Development Holdings Limited was listed on The Stock Exchange of Hong Kong Limited on 24 May 2006 (Stock Code: 03382).

The Group first operated as a non-containerised cargo terminal at the port of Tianjin in 1968 and subsequently expanded into container handling business in 1980. In February 2010, the Group completed the acquisition of 56.81% equity interest in Tianjin Port Holdings Co., Ltd. Today, the Group is the leading port operator at the port of Tianjin and is principally engaged in container and non-containerised cargo handling businesses, sales business and port ancillary services business. The Group has advanced container terminals, specialised terminals in handling of coke, coal, ore, Ro-Ro, and a 300,000-tonne crude oil terminal.

The port of Tianjin, located at the juncture of the Beijing-Tianjin city belt and the economic circle of the Bohai Rim Region, is the largest comprehensive port and an important foreign trade port in North China, serving 14 provinces, cities and autonomous regions and a hub connecting Northeast Asia with Midwest Asia. It is one of the coastal ports with the most complete functions in China. In the first half of 2020, the port of Tianjin was the eighth largest port in terms of total cargo throughput and ranked the sixth in terms of total container throughput in China.

CONTENTS

Corporate Profile	1	Other Information	30
Financial Highlights	2	Financial Summary	34
Management Discussion and Analysis	3	Definitions	35
Report on Review of Condensed Consolidated		Corporate Information	36
Financial Statements	10
Condensed Consolidated Financial Statements	11

Global RO-RO

		Euroasia	Haifeng
			Tianjin Port Pacific
				BEIJING
		Alliance	Haitian	TIANJIN
Tianjin Port		Tianjin Port Ro-Ro
Tugboat
	No.1 Co.
	No.4 Co.	TCT
Petrochemicals Terminal	Yuanhang Ore
	Coke Terminal	Shenhua
	China Coal Huaneng
	Yuanhang
		CNAF	Bulk

Yuanhang International Ore

Tianjin Port Shihua

2 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

FINANCIAL HIGHLIGHTS

	For the six months ended
	30 June
	2020	2019
Total throughput
Non-containerised cargo (million tonnes)	107.99	104.90
Container (million TEUs)	8.57	8.32
Consolidated throughput
Non-containerised cargo (million tonnes)	79.92	74.31
Container (million TEUs)	5.66	4.12
HK$ million	For the six months ended
	30 June
	2020	2019
		(restated)
Revenue	6,323	7,086
Operating profit	865	901
Profit before income tax	806	828
Profit attributable to Shareholders	220	273
Basic earnings per share (HK cents)	3.6	4.4
Net cash inflow from operating activities	1,277	1,527
HK$ million	As at	As at
	30 June	31 December
	2020	2019
Total assets	42,979	44,813
Total borrowings	11,709	13,433
Shareholders' equity	12,144	12,188
Total equity	26,347	26,504
Financial ratios
Gearing ratio (Note 1)	44.4%	50.7%
Current ratio	1.2	1.5
Net assets per share - book value (Note 2) (HK$)	2.0	2.0

Notes:

1. Gearing ratio represents total borrowings divided by total equity.

2. Net assets per share - book value represents Shareholders' equity divided by the number of issued shares at the end of reporting period.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 3

MANAGEMENT DISCUSSION AND ANALYSIS

INTERIM RESULTS

In the first half of 2020, total cargo throughput handled by the Group was 200.82 million tonnes (2019: 198.04 million tonnes), an increase of 1.4% over the same period last year, of which total container throughput was 8.572 million TEUs (2019: 8.315 million TEUs), an increase of 3.1% over the same period last year.

In the first half of 2020, profit attributable to shareholders of the Company amounted to HK$220 million and basic earnings per share was HK3.6 cents.

INTERIM DIVIDEND

The Board has resolved not to declare an interim dividend for the six months ended 30 June 2020.

REVIEW OF OPERATIONS

The outbreak of COVID-19 pandemic is an unprecedented shock to the global economy since the beginning of this year; many countries are experiencing a sharp deterioration in economic performance. In an all-out effort to fight the pandemic, China has taken stringent measures and brought the domestic pandemic under control. With the full resumption of operation and production and the government stimulus measures, China's economy is on the path of steady recovery. China's GDP growth turned positive in the second quarter of 2020 showing an increase of 3.2%, a sharp rebound from the 6.8% contraction in the first quarter. In the first half of 2020, China's GDP declined by 1.6% year-on-year and total import and export value contracted by 6.3% year-on-year to US$2.03 trillion. According to the statistics from the Ministry of Transport of the PRC, cargo throughput handled by ports in China in the first half of 2020 was 6,752 million tonnes, representing a year- on-year growth of 0.6%, of which container throughput handled decreased by 5.4% year-on-year to 120.19 million TEUs.

The Group has implemented a range of stringent prevention and control measures in response to the COVID-19 outbreak to safeguard and ensure a well-functioning port supply chain. In the first half of 2020, total cargo throughput handled by the Group was 200.82 million tonnes, maintained steady growth of 1.4% year-on-year.

Non-containerised Cargo Handling Business

In the first half of 2020, the Group achieved total non-containerised cargo throughput of 107.99 million tonnes, representing an increase of 2.9% over the same period last year, of which throughput of the subsidiary terminals grew by 7.5% and throughput of the jointly controlled and affiliated terminals fell by 8.2%.

	Non-containerised cargo throughput
	First half	First half	Change	Change
Nature of terminal	of 2020	of 2019	amount	percentage
	million tonnes	million tonnes	million tonnes
Subsidiary terminals	79.92	74.31	5.61	7.5%
Jointly controlled and affiliated terminals	28.07	30.59	-2.52	-8.2%
Total	107.99	104.90	3.09	2.9%

In terms of total throughput on a year-on-year basis, metal ore handling grew by 13.1% to 52.90 million tonnes (2019:

46.76 million tonnes), coal handling dropped by 10.3% to 28.30 million tonnes (2019: 31.54 million tonnes), crude oil handling decreased by 3.9% to 13.19 million tonnes (2019: 13.72 million tonnes), steel handling was down by 14.2% to 5.14 million tonnes (2019: 5.99 million tonnes), and automobiles handling decreased by 13.2% to 0.66 million tonnes (2019: 0.76 million tonnes).

On a consolidated basis, the blended average unit price of the non-containerised cargo handling business was HK$24.5 per tonne (2019: HK$27.2 per tonne), a decrease of 9.9% compared with the same period last year. In RMB, the blended average unit price decreased by 5.5% compared with the same period last year.

4 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Container Handling Business

Currently, the Group operates all container terminals at the port of Tianjin.

In the first half of 2020, the Group achieved total container throughput of 8.572 million TEUs, representing an increase of 3.1% over the same period last year, of which throughput of the subsidiary terminals increased by 37.4% and throughput of the jointly controlled and affiliated terminals dropped by 30.6%. After 天津五洲國際集裝箱碼頭有限公司 (Tianjin Five Continents International Container Terminal Co., Ltd.*) ("Tianjin Five Continents", an associate originally held as to 40% by the Group) became a subsidiary of the Group in June 2019 and was then absorbed and merged by 天津港集裝箱碼頭有限 公司 (Tianjin Port Container Terminal Co., Ltd.*) ("Tianjin Port Container", a subsidiary of the Group), its throughput was included in subsidiary terminals in the first half of 2020 while it was included in jointly controlled and affiliated terminals in the first half of 2019, causing large fluctuations between throughput of the two categories.

			Container throughput
		First half	First half	Change	Change
Nature of terminal	of 2020	of 2019	amount	percentage
		'000 TEUs	'000 TEUs	'000 TEUs
Subsidiary terminals	5,663	4,122	1,541	37.4%
Jointly controlled and affiliated terminals	2,909	4,193	-1,284	-30.6%
Total	8,572	8,315	257	3.1%

On a consolidated basis, the blended average unit price of the container handling business was HK$218.8 per TEU (2019: HK$273.0 per TEU), a decrease of 19.9% compared with the same period last year. In RMB, the blended average unit price decreased by 15.9% compared with the same period last year. The decrease in the blended average unit price was mainly attributable to the change in cargo mix in the first half of 2020, and the change in cargo mix (on a consolidated basis) caused after Tianjin Five Continents became a subsidiary of the Group and was then absorbed and merged by Tianjin Port Container.

Sales Business

The Group's sales business mainly engaged in the supply of fuel to the inbound vessels, sales of supplies and other materials.

In the first half of 2020, the Group recorded revenue of HK$2,128 million from sales business, representing a decrease of 25.3% compared with the same period last year, which was mainly due to the drop in both sales volume and prices.

Other Port Ancillary Services Business

Other port ancillary services of the Group mainly include tugboat services, agency services and other services.

In the first half of 2020, cargo agency dropped by 14.0% to 34.84 million tonnes of cargoes (2019: 40.52 million tonnes);

shipping agency decreased by 14.5% to 2,653 vessel calls (2019: 3,102 vessel calls); tallying services decreased by 7.9% to

50.39 million tonnes of cargoes (2019: 54.73 million tonnes); and tugboat services decreased by 5.3% to 19,700 vessel calls

(2019: 20,810 vessel calls) compared with the same period last year.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 5

MANAGEMENT DISCUSSION AND ANALYSIS

OUTLOOK

Going into the second half of the year, the global economic outlook remains highly uncertain due to the pandemic, and the pace of economic recovery is extremely unclear. While this pandemic reoriented our focus, other risks, including U.S. presidential election, ongoing tensions between China and the U.S., debt crisis, geopolitical risks, continue to weigh on the global economy and international trade, posing challenges to the port industry. According to the World Economic Outlook update published by the International Monetary Fund (IMF) in June, the global economic growth is projected at -4.9% and China's growth is projected at 1.0% in 2020.

This year, the Group has continued to create new accomplishments. In promoting the automation and intelligence of container operation, we launched an integrated intelligent tallying system, which improved the efficiency of container terminals handling and tallying services. In the construction of green ports, we further promoted the green transportation mode of "road freight to rail freight" and "cargo containerisation". Going forward, the Group determines to face the upcoming challenges, strive for its high-quality development, push forward the use of 5G technology, focus on automation in operation, foster port intellectualisation to the highest international standard, and aims to construct a world-class smart and green port.

FINANCIAL REVIEW

Revenue

The Group's revenue was HK$6,323 million in the first half of 2020, representing a decrease of 10.8% compared with the same period last year. An analysis of revenue by segment is as follows:

		Revenue
	First half	First half	Change	Change
Type of business	of 2020	of 2019	amount	percentage
	HK$ million	HK$ million	HK$ million
Non-containerised cargo handling business	1,955	2,023	-68	-3.3%
Container handling business	1,239	1,125	114	10.2%
Cargo handling business (total)	3,194	3,148	46	1.5%
Sales business	2,128	2,850	-722	-25.3%
Other port ancillary services business	1,001	1,088	-87	-8.0%
Total	6,323	7,086	-763	-10.8%

Revenue from non-containerised cargo handling business was HK$1,955 million, 3.3% lower than that in the same period last year. In RMB, revenue increased by 1.4%, mainly contributed by the increase in non-containerised cargo throughput.

Revenue from container handling business grew by 10.2% over the same period last year to HK$1,239 million. In RMB, revenue increased by 15.6%, which was mainly attributable to the change in scope of consolidation after Tianjin Five Continents became a subsidiary of the Group and was then absorbed and merged by Tianjin Port Container.

Revenue from sales business was HK$2,128 million, a 25.3% decrease compared with the same period last year and a 21.6% decrease in RMB, which was mainly due to the drop in both sales volume and prices.

Revenue from other port ancillary services business was HK$1,001 million, an 8.0% decrease compared with the same period last year and a 3.4% decrease in RMB.

6 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Cost of Sales

In the first half of 2020, cost of sales of the Group was HK$4,855 million, representing a decrease of 13.9% compared with the same period last year. An analysis of costs by segment is as follows:

			Costs
		First half	First half	Change	Change
Type of business	of 2020	of 2019	amount	percentage
		HK$ million	HK$ million	HK$ million
Cargo handling business	2,110	2,118	-8	-0.4%
Sales business	2,126	2,831	-705	-24.9%
Other port ancillary services business	619	687	-68	-10.0%
Total	4,855	5,636	-781	-13.9%

Cost of cargo handling business was HK$2,110 million, 0.4% lower than that in the same period last year. In RMB, cost increased by 4.6%, primarily attributable to the change in scope of consolidation after Tianjin Five Continents became a subsidiary of the Group and was then absorbed and merged by Tianjin Port Container.

Cost of sales business was HK$2,126 million, a 24.9% decrease compared with the same period last year. In RMB, cost decreased by 21.2% which was mainly due to the decrease in sales leading to the corresponding decrease in costs of sales.

Cost of other port ancillary services business was HK$619 million, a 10.0% decline compared with the same period last year and a 5.6% decrease in RMB, which was mainly due to the decrease in wage costs and labour costs.

Gross Profit

Gross profit and gross profit margin for the first half of 2020 were HK$1,466 million (2019: HK$1,443 million) and 23.2%

(2019: 20.4%) respectively. Gross profit increased by 1.5% over the same period last year and gross profit margin increased by 2.8 percentage points over the same period last year, which was mainly driven by the increase in gross profit and gross profit margin of cargo handling business.

Administrative Expenses

Administrative expenses of the Group decreased by 3.5% compared with the same period last year to HK$678 million. The Group will take strict measures in control and management so as to maintain administrative expenses at a reasonable level.

Other Income and Gains and Other Operating Expenses

Other income and gains amounted to HK$122 million, representing a decrease of HK$105 million compared with the same period last year. The decline was primarily due to the gain of HK$81.58 million recorded in the same period last year on remeasurement of 40% equity interest in Tianjin Five Continents originally held by the Group in accordance with relevant accounting standards, when Tianjin Five Continents became a subsidiary of the Group upon completion of the acquisition of additional equity interest. Interest income from deposits decreased by HK$33.81 million compared with the same period last year.

Other operating expenses amounted to HK$39.74 million, an increase of HK$21.02 million compared with HK$18.72 million reported in the same period last year, mainly due to the increase in exchange loss of HK$19.81 million.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 7

MANAGEMENT DISCUSSION AND ANALYSIS

Finance Costs

Finance costs (excluding capitalised interest) were HK$291 million and finance costs (including capitalised interest) were HK$301 million, a decrease of 14.0% and 13.0% compared with the same period last year respectively, which was mainly attributable to the decrease in total borrowings compared with the same period last year.

Share of Net Profit of Associates and Joint Ventures Accounted for Using the Equity Method

The Group's share of net profit of associates and joint ventures accounted for using the equity method was HK$231 million, representing a decrease of 13.1% compared with the same period last year.

Income Tax

The Group's income tax expenses amounted to HK$209 million, representing an increase of HK$2.46 million over the same period last year.

FINANCIAL POSITION

Cash Flow

In the first half of 2020, net increase in cash and cash equivalents of the Group amounted to HK$215 million.

The Group continued to generate steady cash flow from its operations. Net cash inflow from operating activities amounted to HK$1,277 million.

Net cash inflow from investing activities amounted to HK$899 million, which included cash inflow of HK$1,147 million as a result of decrease in time deposits with maturity over three months upon maturity, and cash used for capital expenditure of HK$268 million.

Net cash outflow from financing activities amounted to HK$1,961 million, which included payment of dividends and interest expenses on borrowings of HK$373 million, net decrease of HK$1,529 million in borrowings, and lease payment of HK$59.64 million.

Capital Structure

The equity attributable to equity holders of the Company as at 30 June 2020 was HK$12,144 million (31 December 2019: HK$12,188 million), and the net asset value of the Company was HK$2.0 per share (31 December 2019: HK$2.0 per share).

As at 30 June 2020, the Company had an issued share capital of 6,158 million shares and the market capitalisation was approximately HK$3,325 million (at the closing price of the shares of the Company of HK$0.54 per share on 30 June 2020).

Assets and Liabilities

As at 30 June 2020, the Group's total assets were HK$42,979 million (31 December 2019: HK$44,813 million) and total

liabilities were HK$16,631 million (31 December 2019: HK$18,310 million). Net current assets as at 30 June 2020 were

HK$1,780 million (31 December 2019: HK$3,768 million).

Liquidity, Financial Resources and Borrowings

As at 30 June 2020, the Group's cash and deposits (including restricted bank deposits and time deposits with maturity over three months) were HK$7,599 million (31 December 2019: HK$8,680 million) and principally denominated in RMB.

The Group's total borrowings as at 30 June 2020 were HK$11,709 million (31 December 2019: HK$13,433 million), with HK$5,476 million repayable within one year, HK$4,156 million repayable after one year and within five years and HK$2,077 million repayable after five years. About 18.7% and 81.3% of the Group's borrowings were denominated in HK$ and RMB respectively.

8 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

MANAGEMENT DISCUSSION AND ANALYSIS

Financial Ratios

As at 30 June 2020, the Group's gearing ratio (total borrowings divided by total equity) was 44.4% (31 December 2019: 50.7%), and current ratio (current assets divided by current liabilities) was 1.2 (31 December 2019: 1.5).

Pledge of Assets

None of the Group's assets were pledged as at 30 June 2020.

Contingent Liabilities

The Group did not have any material contingent liabilities as at 30 June 2020.

Financial Management and Policy

The Group's Hong Kong head office is responsible for financial risk management of the Group and the finance department is responsible for the daily management. One of the major objectives of the Group's treasury policy is to manage its foreign currency exchange rate and interest rate risk exposures. It is the Group's policy not to engage in any speculative activities.

The operations of the Group are located in the PRC and its functional currency is RMB. The Group is exposed to foreign exchange risk primarily from the assets and liabilities that are denominated in non-functional currencies. As at 30 June 2020, most of the Group's assets and liabilities were denominated in RMB except for certain bank borrowings denominated in HK$. RMB exchange rate fluctuated in the first half of 2020. With the transition to 'risk-off' mode in global financial markets due to the pandemic, US$ was pushed up. Following the successful implementation of pandemic prevention and control measures, China has successfully resumed its economic activities. This, together with a weaker US$ index, supported the RMB exchange rate, easing the depreciation pressure on RMB. As the exchange rate of RMB at the end of June 2020 was approximately 2.0% lower than that at the end of 2019, an exchange loss of HK$36.49 million (2019: HK$16.68 million) arose from the translation of foreign currency denominated liabilities held by the Group. The fluctuations in RMB exchange rate will affect the Group's results reported in HK$ as the Group operates its business in the PRC and its functional currency is RMB. No hedging arrangement was entered into in respect of foreign exchange risk exposure during the period under review.

The Group's interest rate risk arises primarily from the fluctuation in interest rates of borrowings. Borrowings at variable rates expose the Group to cash flow interest rate risk, while borrowings at fixed rates expose the Group to fair value interest rate risk. As at 30 June 2020, the Group's total borrowings were HK$11,709 million and mainly at floating interest rate, and the average borrowing interest rate was 4.0% (31 December 2019: 4.3%).

The Group will continue to monitor the risks of exchange rate and interest rate closely. In view of the fluctuations in RMB exchange rate and its debts in foreign currencies, the Group will continuously review its treasury strategy, with the aim to be well prepared and to respond quickly and effectively to the rapidly changing conditions in financial market.

CAPITAL EXPENDITURE AND COMMITMENTS

In the first half of 2020, additions to property, plant and equipment of the Group amounted to HK$223 million, which primarily comprised construction of new terminals and depots, and renovation of terminals and depots.

As at 30 June 2020, the Group's capital commitments (including authorised but not contracted for) amounted to HK$2,410 million (31 December 2019: HK$2,803 million), of which HK$1,849 million was for property, plant and equipment and HK$561 million was for investment in an associate.

On 23 July 2020, Tianjin Port Co entered into an agreement with the other shareholder of 神華天津煤炭碼頭有限責任公司 (Shenhua Tianjin Coal Terminal Co., Ltd.*) ("Shenhua Tianjin", an associate of the Group) to terminate the capital injection and not to contribute the unpaid capital to Shenhua Tianjin. Upon termination of the capital injection, the percentage shareholding interest of Tianjin Port Co in Shenhua Tianjin remains unchanged at 45% and Shenhua Tianjin continues to be accounted for as an associate of the Group. Details were set out in the announcement of the Company dated 23 July 2020.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 9

MANAGEMENT DISCUSSION AND ANALYSIS

EMPLOYEES

As at 30 June 2020, the Group had approximately 8,000 employees. The Group offers remuneration packages for employees based on their position, performance and the labour market conditions. In addition to basic salary, mandatory provident fund scheme (in accordance with the Mandatory Provident Fund Schemes Ordinance for Hong Kong employees) or the state- managed pension scheme (for PRC employees), discretionary bonus is also awarded to the employees with reference to the annual results and the employees' performance. The Group reviews the remuneration policies and packages on a regular basis.

The Group highly values the life-long learning and personal development of the employees, and enhances their productivity through the provision of training, thereby benefits business development of the Group. The management proactively communicates with employees to foster the employer-employee relationship.

APPRECIATION

On behalf of the Board, I would like to express my gratitude to a team of dedicated staff for their unfailing service and to our shareholders for their continuous support to the Group.

By order of the Board

CHU Bin

Chairman

Hong Kong, 26 August 2020

10 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

REPORT ON REVIEW OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

To the Board of Directors of Tianjin Port Development Holdings Limited (incorporated in the Cayman Islands with limited liability)

INTRODUCTION

We have reviewed the condensed consolidated financial statements of Tianjin Port Development Holdings Limited (the "Company") and its subsidiaries (collectively referred to as the "Group") set out on pages 11 to 29, which comprise the condensed consolidated statement of financial position as of 30 June 2020 and the related condensed consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the six- month period then ended, and certain explanatory notes. The Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited require the preparation of a report on interim financial information to be in compliance with the relevant provisions thereof and Hong Kong Accounting Standard 34 "Interim Financial Reporting" ("HKAS 34") issued by the Hong Kong Institute of Certified Public Accountants (the "HKICPA"). The directors of the Company are responsible for the preparation and presentation of these condensed consolidated financial statements in accordance with HKAS 34. Our responsibility is to express a conclusion on these condensed consolidated financial statements based on our review and to report our conclusion solely to you, as a body, in accordance with our agreed terms of engagement and for no other purpose. We do not assume responsibility towards or accept liability to any other person for the contents of this report.

SCOPE OF REVIEW

We conducted our review in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the HKICPA. A review of these condensed consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Hong Kong Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial statements are not prepared, in all material respects, in accordance with HKAS 34.

OTHER MATTERS

The comparative condensed consolidated income statement, statement of comprehensive income, statement of changes in equity and statement of cash flows for the six months ended 30 June 2019 and the relevant explanatory notes included in these condensed consolidated financial statements before restatements were extracted from the interim financial information of the Group for the six months ended 30 June 2019 reviewed by another auditor who expressed an unmodified conclusion on that information on 28 August 2019. The comparative condensed consolidated statement of financial position as at 31 December 2019 and the relevant explanatory notes included in these condensed consolidated financial statements were extracted from the consolidated financial statements of the Group for the year ended 31 December 2019 audited by the same auditor who expressed an unmodified opinion on those statements on 29 May 2020.

Deloitte Touche Tohmatsu

Certified Public Accountants

Hong Kong

26 August 2020

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 11

CONDENSED CONSOLIDATED INCOME STATEMENT

For the six months ended 30 June 2020

		Unaudited
		Six months ended 30 June
		2020		2019
	Note	HK$'000		HK$'000
				(restated)
Revenue	5	6,323,448		7,085,540
Business tax and surcharge		(2,646)		(5,610)
Cost of sales		(4,855,259)		(5,636,479)
Gross profit		1,465,543		1,443,451
Other income and gains	6	122,364		227,828
Administrative expenses		(678,414)		(703,185)
Net impairment losses on financial assets		(4,466)		(3,518)
Loss of assets	22	-		(45,128)
Other operating expenses		(39,740)		(18,715)
Operating profit		865,287		900,733
Finance costs	7	(291,078)		(338,637)
Share of net profit of associates and joint ventures
accounted for using the equity method		231,494		266,354
Profit before income tax		805,703		828,450
Income tax	8	(209,340)		(206,881)
Profit for the period	9	596,363		621,569
Profit attributable to:
Equity holders of the Company		219,770		273,274
Non-controlling interests		376,593		348,295
		596,363		621,569
Earnings per share	11
Basic (HK cents)		3.6		4.4
Diluted (HK cents)		3.6		4.4

The notes on pages 17 to 29 are an integral part of these condensed consolidated financial statements.

12 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the six months ended 30 June 2020

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
			(restated)
Profit for the period	596,363		621,569
Other comprehensive (loss)/income
Items that will not be reclassified to profit or loss:
Changes in the fair value of financial assets at fair value
through other comprehensive income	(107,780)		261,161
Income tax effect to the above item	26,795		(65,491)
Items that will not be subsequently reclassified to profit or loss:
Currency translation differences	(514,305)		(113,180)
Other comprehensive (loss)/income for the period, net of tax	(595,290)		82,490
Total comprehensive income for the period	1,073		704,059
Total comprehensive (loss)/income attributable to:
Equity holders of the Company	(44,563)		287,042
Non-controlling interests	45,636		417,017
	1,073		704,059

The notes on pages 17 to 29 are an integral part of these condensed consolidated financial statements.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 13

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

			As at 30 June 2020
		Unaudited	Audited
		30 June	31 December
		2020	2019
	Note	HK$'000	HK$'000
ASSETS
Non-current assets
Property, plant and equipment	12	19,631,549	20,351,560
Right-of-use assets	13	6,464,113	6,737,343
Intangible assets		68,970	68,143
Investments accounted for using the equity method		4,895,836	4,773,800
Financial assets at fair value through other comprehensive income		602,955	723,781
Deferred income tax assets		53,769	54,914
		31,717,192	32,709,541
Current assets
Inventories		354,801	246,161
Trade and other receivables and notes receivables	14	3,308,154	3,177,891
Restricted bank deposits		38,866	35,059
Time deposits with maturity over three months		-	1,169,702
Cash and cash equivalents		7,559,798	7,474,924
		11,261,619	12,103,737
Total assets		42,978,811	44,813,278
EQUITY
Equity attributable to equity holders of the Company
Share capital	15	615,800	615,800
Other reserves	16	3,333,013	3,599,796
Retained earnings		8,194,848	7,972,628
		12,143,661	12,188,224
Non-controlling interests		14,203,821	14,315,361
Total equity		26,347,482	26,503,585

The notes on pages 17 to 29 are an integral part of these condensed consolidated financial statements.

14 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2020

		Unaudited	Audited
		30 June	31 December
		2020	2019
	Note	HK$'000	HK$'000
LIABILITIES
Non-current liabilities
Borrowings	17	6,232,562	8,995,525
Lease liabilities		674,657	690,019
Deferred income tax liabilities		217,041	261,889
Other long-term liabilities		25,191	26,815
		7,149,451	9,974,248
Current liabilities
Trade and other payables and contract liabilities	18	3,593,410	3,524,551
Current income tax liabilities		133,266	78,466
Borrowings	17	5,475,948	4,437,477
Lease liabilities		279,254	294,951
		9,481,878	8,335,445
Total liabilities		16,631,329	18,309,693
Total equity and liabilities		42,978,811	44,813,278
Net current assets		1,779,741	3,768,292
Total assets less current liabilities		33,496,933	36,477,833

The notes on pages 17 to 29 are an integral part of these condensed consolidated financial statements.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 15

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the six months ended 30 June 2020

			Unaudited
	Equity attributable to equity holders of the Company
					Non-
	Share	Other	Retained		controlling	Total
	capital	reserves	earnings	Total	interests	equity
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
		(Note 16)
At 1 January 2019	615,800	3,704,072	7,848,640	12,168,512	13,622,769	25,791,281
Total comprehensive income
for the period (restated)	-	13,768	273,274	287,042	417,017	704,059
Dividends	-	-	(171,808)	(171,808)	(389,468)	(561,276)
Deregistration of subsidiaries	-	(195)	193	(2)	(5,917)	(5,919)
Acquisition of a subsidiary (Note 19)	-	-	-	-	794,376	794,376
Acquisition of additional interest
in a subsidiary	-	(5,963)	-	(5,963)	(105,489)	(111,452)
Lapse of share options	-	(4,054)	4,054	-	-	-
At 30 June 2019 (restated)	615,800	3,707,628	7,954,353	12,277,781	14,333,288	26,611,069
At 1 January 2020	615,800	3,599,796	7,972,628	12,188,224	14,315,361	26,503,585
Total comprehensive (loss)/income
for the period	-	(264,333)	219,770	(44,563)	45,636	1,073
Dividends	-	-	-	-	(157,176)	(157,176)
Lapse of share options	-	(2,450)	2,450	-	-	-
At 30 June 2020	615,800	3,333,013	8,194,848	12,143,661	14,203,821	26,347,482

The notes on pages 17 to 29 are an integral part of these condensed consolidated financial statements.

16 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the six months ended 30 June 2020

		Unaudited
		Six months ended 30 June
		2020	2019
	Note	HK$'000	HK$'000
			(restated)
Net cash generated from operating activities		1,276,990	1,526,633
Cash flows from investing activities
Payments for property, plant and equipment and intangible assets		(267,656)	(396,024)
Acquisition of a subsidiary	19	-	96,336
Dividends received from investments accounted for using the equity method		8,383	107,727
Decrease in time deposits with maturity over three months		1,147,163	859,385
Other investing activities		11,172	21,171
Net cash from investing activities		899,062	688,595
Cash flows from financing activities
Proceeds from borrowings		1,672,370	2,013,129
Repayments of borrowings		(3,200,897)	(3,250,526)
Lease payments		(59,640)	(85,910)
Other financing activities		(372,639)	(512,996)
Net cash used in financing activities		(1,960,806)	(1,836,303)
Net increase in cash and cash equivalents		215,246	378,925
Cash and cash equivalents at 1 January		7,474,924	9,769,956
Effects of exchange rate changes		(130,372)	(57,202)
Cash and cash equivalents at 30 June		7,559,798	10,091,679

The notes on pages 17 to 29 are an integral part of these condensed consolidated financial statements.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 17

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

1. GENERAL INFORMATION

Tianjin Port Development Holdings Limited (the "Company") is incorporated in the Cayman Islands as an exempted company with limited liability and its shares are listed on the Main Board of The Stock Exchange of Hong Kong Limited (the "Stock Exchange"). Its principal address is Suite 3904-3907, 39/F., Tower Two, Times Square, 1 Matheson Street, Causeway Bay, Hong Kong.

The Company and its subsidiaries (collectively referred to as the "Group") are principally engaged in the provision of containerised and non-containerised cargo handling services, sales and other port ancillary services at the port of Tianjin in the People's Republic of China (the "PRC").

The condensed consolidated financial statements were approved for issue by the board of directors of the Company (the "Board") on 26 August 2020.

2. BASIS OF PREPARATION

The condensed consolidated financial statements have been prepared in accordance with Hong Kong Accounting Standard ("HKAS") 34 "Interim Financial Reporting" issued by the Hong Kong Institute of Certified Public Accountants and the applicable disclosure requirements of Appendix 16 to the Rules Governing the Listing of Securities on the Stock Exchange.

The condensed consolidated financial statements should be read in conjunction with the annual consolidated financial statements for the year ended 31 December 2019 which have been prepared in accordance with Hong Kong Financial Reporting Standards ("HKFRSs").

3. SIGNIFICANT ACCOUNTING POLICIES

Except as described below, the accounting policies applied and methods of computation used in the preparation of the condensed consolidated financial statements are consistent with those used in the annual consolidated financial statements for the year ended 31 December 2019.

The Group has applied the Amendments to References to the Conceptual Framework in HKFRS Standards and the following amendments to HKFRSs for the accounting period beginning on 1 January 2020:

HKAS 1 and HKAS 8 (Amendments)	Definition of Material
HKFRS 3 (Amendment)	Definition of a Business
HKFRS 9, HKAS 39 and HKFRS 7 (Amendments)	Interest Rate Benchmark Reform

The application of the Amendments to References to the Conceptual Framework in HKFRS Standards and the amendments to HKFRSs in the current period has had no material impact on the Group's financial positions and performance for the current and prior periods and/or on the disclosures set out in these condensed consolidated financial statements.

18 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

4. FINANCIAL RISK MANAGEMENT

4.1 Fair value estimation

Financial instruments measured at fair value are analysed into the following fair value measurement hierarchy:

• Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
• Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
• Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

At 30 June 2020, financial instruments included in level 1 and level 3 comprise listed equity securities and unlisted equity securities respectively which were classified as financial assets at fair value through other comprehensive income ("FVOCI"). Listed equity securities of HK$559,029,000 (31 December 2019: HK$678,992,000) were measured at the quoted price and unlisted equity securities of HK$43,926,000 (31 December 2019: HK$44,789,000) were measured by using marketability discount rate derived from management's judgement in estimating their fair value.

There were no transfers between different levels of the fair value hierarchy during the period.

For the six months ended 30 June 2020, there were no significant changes in the business or economic circumstances that affect the fair values of the Group's financial assets and financial liabilities.

4.2 Fair value of financial assets and financial liabilities measured at amortised cost

The carrying amounts of financial assets and financial liabilities measured at amortised cost in the condensed consolidated financial statements approximate their fair values.

5. SEGMENT INFORMATION

Segment information has been prepared in a manner consistent with the information which is regularly reviewed by the chief operating decision maker and used for the purposes of assessing performance and allocating resources between segments.

Principal activities of the three reportable segments are as follows:

Cargo handling	- Provision of container handling and non-containerised cargo handling
Sales	-	Supply of fuel and sales of materials
Other port ancillary services	-	Tugboat services, agency services, tallying and other services

Inter-segment transactions are carried out at arm's length.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 19

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

5. SEGMENT INFORMATION (continued)

The segment information for the reportable segments is as follows:

		Unaudited
		Six months ended 30 June 2020
			Other port
	Cargo		ancillary
	handling	Sales	services	Total
	HK$'000	HK$'000	HK$'000	HK$'000
Total segment revenue	3,194,080	2,210,162	1,191,253		6,595,495
Inter-segment revenue	-	(81,788)	(190,259)		(272,047)
Revenue from external customers	3,194,080	2,128,374	1,000,994		6,323,448
Segment results	1,083,629	2,385	382,175		1,468,189
					(2,646)
Business tax and surcharge
Other income and gains					122,364
Administrative expenses					(678,414)
Net impairment losses on financial assets					(4,466)
Other operating expenses					(39,740)
Finance costs					(291,078)
Share of net profit of associates and
joint ventures accounted for using
the equity method					231,494
Profit before income tax					805,703
		Unaudited
	Six months ended 30 June 2019 (restated)
			Other port
	Cargo		ancillary
	handling	Sales	services	Total
	HK$'000	HK$'000	HK$'000	HK$'000
Total segment revenue	3,147,366	2,943,718	1,280,685		7,371,769
Inter-segment revenue	-	(93,584)	(192,645)		(286,229)
Revenue from external customers	3,147,366	2,850,134	1,088,040		7,085,540
Segment results	1,029,454	19,315	400,292		1,449,061
Business tax and surcharge					(5,610)
Other income and gains					227,828
Administrative expenses					(703,185)
Net impairment losses on financial assets					(3,518)
Loss of assets					(45,128)
Other operating expenses					(18,715)
Finance costs					(338,637)
Share of net profit of associates and
joint ventures accounted for using
the equity method					266,354
Profit before income tax					828,450

20 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

6. OTHER INCOME AND GAINS

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
Interest income
from deposits	81,394		115,200
from loan to a joint venture	2,351		2,855
Dividend income from financial assets at FVOCI	10,032		12,242
Government grants	14,011		3,742
Remeasurement gain on investment in an associate
accounted for using the equity method (Note 19)	-		81,581
Others	14,576		12,208
	122,364		227,828

7. FINANCE COSTS
		Unaudited
		Six months ended 30 June
		2020		2019
		HK$'000		HK$'000
	Interest expenses on borrowings	281,204		320,123
	Less: Amount capitalised in construction in progress	(9,627)		(6,957)
		271,577		313,166
	Interest expenses on lease liabilities	19,501		25,471
		291,078		338,637

8. INCOME TAX

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
PRC income tax
Current	204,286		199,320
Deferred	5,054		7,561
	209,340		206,881

No provision for Hong Kong profits tax has been made as the Group has no estimated assessable profits arising in or derived from Hong Kong for the period (2019: nil).

PRC income tax has been provided based on the estimated assessable profits for the period at the prevailing income tax rates applicable to the subsidiaries located in the PRC.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 21

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

9. PROFIT FOR THE PERIOD

Profit for the period has been arrived at after charging the following items:

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
Costs of goods sold	2,087,357		2,799,000
Depreciation of property, plant and equipment	541,098		491,246
Depreciation of right-of-use assets	172,584		184,014
Amortisation of intangible assets	9,610		8,415
Exchange loss, net	36,485		16,675

10. DIVIDEND

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
2018 final dividend of HK2.79 cents per ordinary share	-		171,808

At the meeting held on 29 May 2020, the Board recommended the payment of a final dividend of HK2.52 cents per ordinary share for the year ended 31 December 2019. The 2019 final dividend was approved at the annual general meeting of the Company held on 9 July 2020 and the aggregate amount of the 2019 final dividend was approximately HK$155,182,000. These condensed consolidated financial statements do not reflect this dividend payable.

The Board resolved not to pay an interim dividend for the six months ended 30 June 2020 (2019: nil).

11. EARNINGS PER SHARE

The calculation of basic and diluted earnings per share is based on the following data:

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
			(restated)
Earnings
Profit attributable to equity holders of the Company
for calculating basic and diluted earnings per share	219,770		273,274
	Unaudited
	Six months ended 30 June
	2020		2019
	'000		'000
Number of shares
Weighted average number of ordinary shares
for calculating basic and dilutive earnings per share	6,158,000		6,158,000

In both periods, the computation of diluted earnings per share did not assume the exercise of the Company's outstanding share options as the exercise prices of the share options were higher than the average market price of the Company's shares.

22 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

12. PROPERTY, PLANT AND EQUIPMENT

During the six months ended 30 June 2020, additions to the Group's property, plant and equipment amounted to approximately HK$223 million (six months ended 30 June 2019: HK$334 million).

13. RIGHT-OF-USE ASSETS

During the six months ended 30 June 2020, additions to the Group's right-of-use assets amounted to approximately HK$29 million (six months ended 30 June 2019: HK$13 million).

14. TRADE AND OTHER RECEIVABLES AND NOTES RECEIVABLES

In general, the Group grants a credit period of about 30 to 180 days to its customers. The ageing analysis of trade receivables (net of provision for impairment) based on the invoice date is as follows:

	Unaudited	Audited
	30 June	31 December
	2020	2019
	HK$'000	HK$'000
0 - 90 days	1,424,667	1,741,719
91 - 180 days	162,666	100,198
Over 180 days	157,326	52,497
	1,744,659	1,894,414

As at 30 June 2020, total notes receivables amounting to approximately HK$629 million (31 December 2019: HK$586 million) were held by the Group for settlement of trade receivables. Notes receivables mainly included bank acceptance notes with a maturity period of within one year. The Group believes that the measured bank acceptance notes do not expose to significant credit risk and will not cause significant losses due to the bank default. The changes in the fair values of the notes receivables are minimal due to its short-term nature.

As at 30 June 2020, the Group endorsed notes receivables amounting to approximately HK$612 million (31 December 2019: HK$800 million) to suppliers to settle trade and other payables. The majority of endorsed notes receivables had a maturity of within six months at the end of the reporting period. In accordance with the relevant laws in the PRC, holders of notes receivables have a right of recourse against the Group if the issuing parties default payment. In the opinion of the directors of the Company, the Group has transferred substantially all risks and rewards of ownership relating to these endorsed notes receivables, and accordingly derecognised the full carrying amounts of these endorsed notes receivables and the associated trade and other payables.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 23

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

15. SHARE CAPITAL

	Number of	Share
	shares	capital
	'000	HK$'000
Ordinary shares of HK$0.10 each
Authorised:
At 1 January 2019, 31 December 2019 and 30 June 2020	12,000,000	1,200,000
Issued and fully paid:
At 1 January 2019, 31 December 2019 and 30 June 2020	6,158,000	615,800

16. OTHER RESERVES

				Unaudited
				Employee
				share-based
	Share	Merger	Revaluation	compensation	Exchange	Statutory
	premium	reserve	reserve	reserve	reserve	reserves	Others	Total
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000
	(Note i)					(Note ii)
At 1 January 2019	10,291,605	(9,111,447)	113,225	8,702	401,854	1,601,615	398,518	3,704,072
Other comprehensive income/(loss)
for the period (restated)	-	-	66,574	-	(52,806)	-	-	13,768
Deregistration of subsidiaries	-	-	-	-	-	-	(195)	(195)
Acquisition of additional interest
in a subsidiary	-	-	-	-	-	-	(5,963)	(5,963)
Lapse of share options	-	-	-	(4,054)	-	-	-	(4,054)
At 30 June 2019 (restated)	10,291,605	(9,111,447)	179,799	4,648	349,048	1,601,615	392,360	3,707,628
At 1 January 2020	10,291,605	(9,111,447)	169,975	4,648	131,532	1,698,557	414,926	3,599,796
Other comprehensive loss for
the period	-	-	(28,029)	-	(236,304)	-	-	(264,333)
Lapse of share options	-	-	-	(2,450)	-	-	-	(2,450)
At 30 June 2020	10,291,605	(9,111,447)	141,946	2,198	(104,772)	1,698,557	414,926	3,333,013

Notes:

1. Under the Companies Law of the Cayman Islands, the share premium account is distributable to the shareholders of the Company provided that immediately following the date on which the dividend is proposed to be distributed, the Company will be in a position to pay off its debts as they fall due in the ordinary course of business of the Company.
2. In accordance with the PRC laws and regulations, companies established in the PRC are required to transfer at least 10% of their net profit for the year, as determined under the PRC accounting standards, to relevant reserves until the reserve balance reaches 50% of their registered capital. Such reserves can be used to offset accumulated losses, capitalisation into capital and expansion of production.

24 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

17. BORROWINGS

	Unaudited	Audited
	30 June	31 December
	2020	2019
	HK$'000	HK$'000
Unsecured borrowings:
Non-current
Long-term borrowings	6,232,562	8,995,525
Current
Short-term borrowings	1,195,259	1,188,826
Current portion of long-term borrowings	4,280,689	3,248,651
	5,475,948	4,437,477
	11,708,510	13,433,002
Repayable:
Within 1 year	5,475,948	4,437,477
Between 1 and 2 years	1,375,654	4,075,739
Between 2 and 5 years	2,779,854	3,234,492
Over 5 years	2,077,054	1,685,294
	11,708,510	13,433,002
Carrying amounts are denominated in the following currencies:
Renminbi	9,513,606	10,341,398
HK dollars	2,194,904	3,091,604
	11,708,510	13,433,002
Effective interest rates per annum:
Renminbi	2.9% - 4.9%	2.9% - 4.9%
HK dollars	1.7% - 1.8%	3.9% - 4.0%

18. TRADE AND OTHER PAYABLES AND CONTRACT LIABILITIES

The ageing analysis of trade and notes payables based on the invoice date is as follows:

	Unaudited	Audited
	30 June	31 December
	2020	2019
	HK$'000	HK$'000
0 - 90 days	1,038,054	1,444,764
91 - 180 days	318,981	116,703
181 - 365 days	204,213	78,192
Over 365 days	65,555	57,292
	1,626,803	1,696,951

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 25

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

19. ACQUISITION OF A SUBSIDIARY

For the six months ended 30 June 2019

On 17 April 2019, Tianjin Port Holdings Co., Ltd. ("Tianjin Port Co"), a subsidiary of the Group, entered into an agreement with other shareholders of Tianjin Five Continents International Container Terminal Co., Ltd. ("Tianjin Five Continents"), an associate of the Group (in which the Group held 40% equity interest prior to the acquisition), to acquire 11.854% equity interest in Tianjin Five Continents. Following the completion of the acquisition, the Group held 51.854% equity interest in Tianjin Five Continents which became a subsidiary of the Group. Tianjin Five Continents was principally engaged in container handling and other port ancillary services. The acquisition was completed by the end of June 2019.

The fair values of identifiable assets and liabilities of Tianjin Five Continents acquired as at the date of acquisition were as follows:

	HK$'000
Property, plant and equipment	1,969,143
Right-of-use assets	215,497
Intangible assets	6,069
Inventories	12,275
Trade and other receivables and notes receivables	91,998
Cash and cash equivalents	96,336
Trade and other payables and contract liabilities	(229,763)
Current income tax liabilities	(10,317)
Borrowings	(501,307)
Net assets acquired	1,649,931
Less: Non-controlling interests	(794,376)
	855,555
Satisfied by:
Fair value of 40% equity interest in Tianjin Five Continents	659,972
Cash consideration	195,583
	855,555
Fair value of 40% equity interest in Tianjin Five Continents	659,972
Less: Investment in an associate accounted for using the equity method	(578,391)
Remeasurement gain on investment in an associate accounted for using
the equity method (Note 6)	81,581
Cash consideration	195,583
Less: Cash consideration payable	(195,583)
Cash consideration paid	-
Cash and cash equivalents acquired	96,336
Net cash inflow arising on acquisition	96,336

26 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

20. CAPITAL COMMITMENTS

	Unaudited	Audited
	30 June	31 December
	2020	2019
	HK$'000	HK$'000
Contracted but not provided for
Property, plant and equipment	577,974	393,064
Investment in an associate (Note)	560,920	571,940
Authorised but not contracted for
Property, plant and equipment	1,271,255	1,837,544

Note:

On 23 July 2020, Tianjin Port Co entered into an agreement with the other shareholder of Shenhua Tianjin Coal Terminal Co., Ltd. ("Shenhua Tianjin", an associate of the Group) to terminate the capital injection and not to contribute the unpaid capital to Shenhua Tianjin. Upon termination of the capital injection, the percentage shareholding interest of Tianjin Port Co in Shenhua Tianjin remains unchanged at 45% and Shenhua Tianjin continues to be accounted for as an associate of the Group.

21. SIGNIFICANT RELATED PARTY TRANSACTIONS

The followings are the significant related party transactions entered into between the Group and its related parties in the normal course of business and on normal commercial terms:

Transactions with related parties of the Group

	Unaudited
	Six months ended 30 June
	2020		2019
	HK$'000		HK$'000
With Tianjin Port (Group) Co., Ltd. ("Tianjin Port Group") and its
subsidiaries, associates and joint ventures
Sales of goods and services	25,187		29,607
Purchases of goods and services	290,800		283,371
Payments for rental of land, property, plant and equipment (Note)	87,297		103,898
Acquisition of property, plant and equipment	18,637		90,006
With associates
Sales of goods and services	25,229		72,247
Purchases of goods and services	349,324		330,731
Income from rental of property, plant and equipment	7,127		159
Payments for rental of property, plant and equipment (Note)	5,751		6,817
Interest income	32,838		17,076
Interest expenses on borrowings	87,437		90,335
With joint ventures
Sales of goods and services	36,669		41,277
Purchases of goods and services	59,276		44,526
Interest income	2,351		2,855

Note: Payments for rental represent rental paid or payable in respect of leases of land, property, plant and equipment.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 27

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

21. SIGNIFICANT RELATED PARTY TRANSACTIONS (continued)

Balances with related parties of the Group

	Unaudited	Audited
	30 June	31 December
	2020	2019
	HK$'000	HK$'000
With Tianjin Port Group and its subsidiaries, associates and joint ventures
Trade and other receivables and notes receivables (Note i)	47,324	44,653
Trade and other payables and contract liabilities (Note i)	235,324	220,752
Lease payables (Note iv)	92,532	85,933
With associates
Trade and other receivables and notes receivables (Note i)	224	123
Trade and other payables and contract liabilities (Note i)	79,612	93,267
Deposits (Note ii)	3,727,879	3,966,175
Borrowings (Note iii)	3,741,099	4,056,006
With joint ventures
Trade and other receivables and notes receivables (Note i)	28,008	20,639
Trade and other payables and contract liabilities (Note i)	4,677	7,729
Loan to a joint venture (Note v)	141,030	141,703

Notes:

1. Trade and other receivables and notes receivables, and trade and other payables and contract liabilities are unsecured, interest-free and due within 1 year.
2. Deposits placed with Tianjin Port Finance Co., Ltd. ("Tianjin Port Finance"), a 48% owned associate of the Group, carry interests at prevailing market rates. Tianjin Port Finance is a non-bank financial institution with limited liability established under PRC law. The business activities of Tianjin Port Finance are regulated and supervised by the People's Bank of China and the China Banking and Insurance Regulatory Commission.
3. As at 30 June 2020, borrowings from Tianjin Port Finance amounted to HK$3,741,099,000 (31 December 2019: HK$4,056,006,000), in
   which HK$3,250,350,000 (31 December 2019: HK$3,537,475,000) are repayable within 5 years and the remaining HK$490,749,000 (31
   December 2019: HK$518,531,000) are repayable over 5 years. Borrowings from Tianjin Port Finance are unsecured and bear interests at
   market rates ranging from 4.3% to 4.9% (31 December 2019: 3.9% to 4.9%) per annum.
4. Lease payables are included in lease liabilities.
5. Loan to a joint venture is unsecured, interest bearing at London Inter-Bank Offered Rate plus 1.5% per annum and repayable in 2020.

Transactions and balances with other state-owned entities in the PRC

The Group operates in an economic environment currently predominated by enterprises directly or indirectly owned or controlled by the PRC government (collectively referred to as "state-owned entities"). The directors of the Company consider those state-owned entities are independent third parties, so far as the Group's business transactions with them are concerned.

The Company's ultimate holding company, Tianjin Port Group, is a state-owned entity whilst most of the associates and joint ventures of the Group are also owned or controlled by the PRC government, the transactions and balances of which are disclosed above.

In addition to those disclosed above, as at 30 June 2020, the majority of the Group's cash and deposits and borrowings held by subsidiaries in the PRC are with state-owned banks and financial institutions.

In accordance with HKAS 24 (Revised), certain transactions with other state-owned entities in the PRC, which are individually or collectively not significant, are exempted from disclosure. The Group is of the opinion that it has provided, in the best of its knowledge, adequate and appropriate disclosure of significant related party transactions in the condensed consolidated financial statements.

28 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

22. RESTATEMENTS DUE TO SUSPECTED EMBEZZLEMENT OF FUNDS

As disclosed in the announcements of the Company dated 12 February 2020, 24 March 2020 and 20 May 2020, and the Group's consolidated financial statements for the year ended 31 December 2019, the Group had identified that a finance officer of Tianjin Port Coke Terminals Co., Ltd. (a subsidiary of the Group) was suspected to have embezzled funds of the aforesaid subsidiary totalling approximately RMB153.9 million (equivalent to approximately HK$171.8 million as at 31 December 2019) during the financial years ended 31 December 2016 to 2019. As a result, the Group had suffered from loss of cash and cash equivalents in the respective periods.

The effects of the restatements on the Group's condensed consolidated income statement for the six months ended 30 June 2019 are summarised as follows:

	Six months		Six months
	ended 30 June		ended 30 June
	2019	Restatements	2019
	HK$'000	HK$'000	HK$'000
			(restated)
Condensed consolidated income statement (extract)
Loss of assets	-	(45,128)	(45,128)
Profit for the period	666,697	(45,128)	621,569
Profit attributable to:
Equity holders of the Company	298,911	(25,637)	273,274
Non-controlling interests	367,786	(19,491)	348,295
	666,697	(45,128)	621,569
Earnings per share
Basic (HK cents)	4.9	(0.5)	4.4
Diluted (HK cents)	4.9	(0.5)	4.4

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 29

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the six months ended 30 June 2020

22. RESTATEMENTS DUE TO SUSPECTED EMBEZZLEMENT OF FUNDS (continued)

The effects of the restatements on the Group's condensed consolidated statement of comprehensive income for the six months ended 30 June 2019 are summarised as follows:

	Six months		Six months
	ended 30 June		ended 30 June
	2019	Restatements	2019
	HK$'000	HK$'000	HK$'000
			(restated)
Condensed consolidated statement of comprehensive
income (extract)
Profit for the period	666,697	(45,128)	621,569
Other comprehensive loss
Currency translation differences	(114,365)	1,185	(113,180)
Other comprehensive income for the period, net of tax	81,305	1,185	82,490
Total comprehensive income for the period	748,002	(43,943)	704,059
Total comprehensive income attributable to:
Equity holders of the Company	312,006	(24,964)	287,042
Non-controlling interests	435,996	(18,979)	417,017
	748,002	(43,943)	704,059

The effects of the restatements on the Group's condensed consolidated statement of cash flows for the six months ended 30 June 2019 are summarised as follows:

	Six months		Six months
	ended 30 June		ended 30 June
	2019	Restatements	2019
	HK$'000	HK$'000	HK$'000
			(restated)
Condensed consolidated statement of cash flows (extract)
Net cash generated from operating activities	1,571,761	(45,128)	1,526,633
Net increase in cash and cash equivalents	424,053	(45,128)	378,925
Cash and cash equivalents at 1 January	9,868,107	(98,151)	9,769,956
Effects of exchange rate changes	(58,387)	1,185	(57,202)
Cash and cash equivalents at 30 June	10,233,773	(142,094)	10,091,679

23. IMPACT OF COVID-19 PANDEMIC

The outbreak of the COVID-19 and the subsequent quarantine measures as well as the travel restrictions imposed by many countries have had negative impacts on the global economy and business environment, and may directly and indirectly affect the operations of the Group. In response to the COVID-19 pandemic, the Group has implemented a range of preventive measures and the operation remained stable.

30 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

OTHER INFORMATION

REVIEW OF INTERIM RESULTS

The unaudited condensed consolidated financial statements for the six months ended 30 June 2020 have been reviewed by the independent auditor of the Company in accordance with Hong Kong Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Hong Kong Institute of Certified Public Accountants. The audit committee of the Company has reviewed the interim report for the six months ended 30 June 2020.

COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE

The Company has complied with all code provisions of the Corporate Governance Code as set out in Appendix 14 to the Listing Rules throughout the six months ended 30 June 2020.

DIRECTORS' SECURITIES TRANSACTIONS

The Company has adopted the Model Code as its code of conduct regarding securities transactions by the Directors. Having made specific enquiry with the Directors, all Directors confirmed that they have complied with the Model Code at all applicable times throughout the six months ended 30 June 2020.

PURCHASE, SALE OR REDEMPTION OF THE COMPANY'S LISTED SECURITIES

Neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company's listed securities during the six months ended 30 June 2020.

CONTINUING DISCLOSURE PURSUANT TO RULE 13.21 OF THE LISTING RULES

On 31 May 2018, Tianjin Port Development Finance Limited, a wholly-owned subsidiary of the Company, as borrower (the "Borrower") and the Company as guarantor entered into a facility agreement with a financial institution as lender for a term loan facility in an aggregate amount of HK$300,000,000. The loan facility is unsecured, interest bearing and repayable in full on the date falling 36 months from the date of the facility agreement.

On 31 May 2018, the Borrower and the Company as guarantor entered into a facility agreement with a financial institution as lender for a term loan facility in an aggregate amount of HK$700,000,000. The loan facility is unsecured, interest bearing and repayable in full on the date falling 36 months from the date of the facility agreement.

On 31 May 2018, the Borrower and the Company as guarantor entered into a facility agreement with several financial institutions as lenders for a term loan facility in an aggregate amount of HK$1,200,000,000. The loan facility is unsecured, interest bearing and repayable in full on the date falling 36 months from the date of the facility agreement.

Each of the above facility agreements includes a condition imposing specific performance obligations on Tianjin Port Group, the Company's controlling shareholder. If Tianjin Port Group, together with its subsidiaries, ceases to (1) have the single largest shareholding interest in the Company in aggregate, or (2) hold no less than 35% (directly or indirectly) of the shareholding interest in the Company in aggregate, the relevant financial institutions may demand immediate repayment of the loan facilities. As at 30 June 2020, the aggregate balance of the loan facilities subject to the above obligations was HK$2,200 million.

On 5 June 2018, the Borrower and the Company as guarantor entered into a facility letter with a financial institution as lender for an uncommitted revolving loan facility of up to HK$100,000,000. The loan facility is unsecured, interest bearing and subject to annual review by the lender. Pursuant to the facility letter, the Borrower and the Company undertake that Tianjin Port Group, together with its subsidiaries, shall (1) have the single largest shareholding interest in the Company in aggregate, and (2) hold no less than 35% (directly or indirectly) of the shareholding interest in the Company in aggregate. Any breach of the undertaking may result in the relevant financial institution exercising its right to demand repayment.

The above specific performance obligations and undertaking continue to exist as at the date of this report.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 31

OTHER INFORMATION

UPDATES ON DIRECTORS' INFORMATION PURSUANT TO RULE 13.51B(1) OF THE LISTING RULES

The changes in the Directors' information since the date of the 2019 annual report of the Company pursuant to Rule 13.51B(1) of the Listing Rules are set out below:

SHI Jing, an executive Director, resigned as a director of 天津津聯投資控股有限公司 (Tianjin Tsinlien Investment Holdings Co., Ltd.*), a controlling shareholder of Tianjin Development Holdings Limited, with effect from 5 August 2020.

Japhet Sebastian LAW, an independent non-executive Director, retired as an independent non-executive director of Beijing Capital International Airport Co., Ltd. (Stock Code: 00694), a company whose shares are listed on the Main Board of the Stock Exchange, and was appointed as an independent supervisor of this company with effect from 23 June 2020.

SHARE OPTION SCHEME

By a written resolution passed by the sole shareholder of the Company on 26 April 2006, the Share Option Scheme was adopted by the Company. The Share Option Scheme was effective for a period of 10 years and expired on 25 April 2016. All outstanding share options granted under the Share Option Scheme will continue to be valid and exercisable in accordance with the provisions of the Share Option Scheme.

Movements of the outstanding share options under the Share Option Scheme during the six months ended 30 June 2020 were as follows:

				Number of share options
	Date of	Exercise	As at			As at
	grant	price	01/01/2020	Exercised	Lapsed	30/06/2020	Exercise period
		HK$
Directors
LI Quanyong (Note)	08/04/2010	2.34	2,100,000	-	(2,100,000)	-	08/10/2010 - 07/04/2020
	28/06/2012	0.896	1,050,000	-	(1,050,000)	-	28/12/2012 - 27/06/2022
SHI Jing	16/09/2014	1.514	1,100,000	-	-	1,100,000	16/03/2015 - 15/09/2024
Japhet Sebastian LAW	28/06/2012	0.896	150,000	-	-	150,000	28/12/2012 - 27/06/2022
CHENG Chi Pang, Leslie	28/06/2012	0.896	150,000	-	-	150,000	28/12/2012 - 27/06/2022
ZHANG Weidong	28/06/2012	0.896	450,000	-	-	450,000	28/12/2012 - 27/06/2022
Employees	29/04/2011	1.828	700,000	-	-	700,000	29/10/2011 - 28/04/2021
	28/06/2012	0.896	1,400,000	-	-	1,400,000	28/12/2012 - 27/06/2022
Total			7,100,000	-	(3,150,000)	3,950,000

Note: LI Quanyong resigned as an executive Director on 7 February 2020.

32 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

OTHER INFORMATION

DIRECTORS' RIGHT TO ACQUIRE SHARES OR DEBENTURES

Other than the Share Option Scheme, during the six months ended 30 June 2020 or at the end of the period, the Company or any of its subsidiaries, its fellow subsidiaries or its holding companies was not a party to any arrangements to enable the Directors or any of their spouses or children under the age of 18 to acquire benefits by means of the acquisition of shares in, or debentures of, the Company or any other body corporate.

DIRECTORS' INTERESTS IN SHARES, UNDERLYING SHARES AND DEBENTURES

As at 30 June 2020, the interests and short positions of the Directors and chief executive of the Company in the shares, underlying shares and debentures of the Company as recorded in the register required to be kept under Section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code, were as follows:

					Percentage of
			Number of	issued share
		Number of	underlying	capital of
Name of Director	Capacity	Shares	shares	the Company
			(Note)
SHI Jing	Beneficial owner	-	1,100,000	(L)	0.02%
Japhet Sebastian LAW	Beneficial owner	2,700,000 (L)	150,000	(L)	0.05%
CHENG Chi Pang, Leslie	Beneficial owner	-	150,000	(L)	0.00%
ZHANG Weidong	Beneficial owner	-	450,000	(L)	0.01%

1. denotes a long position

Note: The interests in underlying shares of unlisted equity derivatives of the Company represented interests in share options granted to the Directors to subscribe for the Shares, further details of which are set out in the section headed "Share Option Scheme" above.

Save as disclosed above, as at 30 June 2020, none of the Directors or chief executive of the Company or their respective associates had any interests or short positions in the shares, underlying shares or debentures of the Company or any of its associated corporations (within the meaning of Part XV of the SFO) as recorded in the register required to be kept under Section 352 of the SFO, or as otherwise notified to the Company and the Stock Exchange pursuant to the Model Code.

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 33

OTHER INFORMATION

INTERESTS OF SHAREHOLDERS DISCLOSEABLE UNDER THE SFO

As at 30 June 2020, the following persons, other than the Directors or chief executive of the Company, had interests and short positions in the shares and underlying shares of the Company as recorded in the register required to be kept under Section 336 of the SFO:

			Percentage of
		Number of	issued share
		Shares	capital of
Name of Shareholder	Capacity	interested	the Company
		(Note 1)
Tianjin Port Overseas Holding Limited	Beneficial owner	3,294,530,000 (L)	53.5%
(Note 2)
Tianjin Port Group (Note 2)	Interest of a controlled corporation	3,294,530,000 (L)	53.5%
Leadport Holdings Limited (Note 3)	Beneficial owner	1,293,030,000 (L)	21.0%
Tianjin Development Holdings Limited	Interest of controlled corporations	1,293,180,000 (L)	21.0%
("Tianjin Development") (Note 3)
Tsinlien Group Company Limited	Interest of controlled corporations	1,303,010,000 (L)	21.2%
("Tsinlien") (Note 4)	Beneficial owner	35,976 (L)	0.0%
天津渤海國有資產經營管理有限公司	Interest of controlled corporations	1,303,045,976 (L)	21.2%
(Tianjin Bohai State-owned Assets
Management Co., Ltd.*) ("Bohai")
(Note 4)
天津津聯投資控股有限公司	Interest of controlled corporations	1,303,045,976 (L)	21.2%
(Tianjin Tsinlien Investment Holdings
Co., Ltd.*) ("Tsinlien Investment
Holdings") (Note 4)

1. denotes a long position

Notes:

1. According to Section 336 of the SFO, when the shareholdings of the Shareholders in the Company change, it is not necessary for the Shareholders to notify the Company and the Stock Exchange unless certain criteria are fulfilled. Therefore, the latest shareholdings of the Shareholders may be different from the shareholdings filed with the Stock Exchange.
2. By virtue of the SFO, Tianjin Port Group is deemed to be interested in all the Shares held by Tianjin Port Overseas Holding Limited, a wholly- owned subsidiary of Tianjin Port Group.
3. By virtue of the SFO, Tianjin Development is deemed to be interested in all the Shares held by Leadport Holdings Limited, a wholly-owned subsidiary of Tianjin Development.
4. Tianjin Development is a subsidiary of Tianjin Investment Holdings Limited which in turn is a wholly-owned subsidiary of Tsinlien. As at 30 June 2020, Tianjin Investment Holdings Limited and Tsinlien Investment Limited, a wholly-owned subsidiary of Tsinlien, were beneficially interested in 6,820,000 Shares and 3,010,000 Shares respectively, representing an aggregate of approximately 0.2% of the issued share capital of the Company. Tsinlien is a wholly-owned subsidiary of Bohai, which in turn is a wholly-owned subsidiary of Tsinlien Investment Holdings. By virtue of the SFO, Tsinlien, Bohai and Tsinlien Investment Holdings are deemed to be interested in all the Shares held by each of Tianjin Development, Tianjin Investment Holdings Limited and Tsinlien Investment Limited.

Save as disclosed above, as at 30 June 2020, there are no other persons, other than the Directors or chief executive of the Company, who had interests or short positions in the shares or underlying shares of the Company as recorded in the register required to be kept under Section 336 of the SFO.

34 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

FINANCIAL SUMMARY

											For the six months
				For the year ended 31 December				ended 30 June
	2015		2016		2017	2018	2019	2019		2020
	HK$'000	HK$'000	HK$'000	HK$'000	HK$'000		HK$'000		HK$'000
											(restated)
Consolidated Income Statement
Revenue	20,541,760	16,456,982	16,621,811	15,871,075	15,077,403	7,085,540		6,323,448
Business tax and surcharge	(65,583)	(39,105)	(18,318)	(14,800)	(10,452)	(5,610)		(2,646)
Cost of sales	(15,817,854) (11,848,641) (12,961,777) (12,675,629) (11,843,819)	(5,636,479)		(4,855,259)
Gross profit	4,658,323	4,569,236	3,641,716	3,180,646	3,223,132	1,443,451		1,465,543
Other income and gains	324,539	226,382	516,882	372,925	395,733	227,828		122,364
Administrative expenses	(2,068,313)	(1,979,661)	(1,912,589)	(1,804,583)	(1,674,496)	(703,185)		(678,414)
Net impairment gains/losses on
financial assets, loss of assets
and other operating expenses	(336,423)	(325,582)	(71,165)	(353,778)	(199,005)	(67,361)		(44,206)
Operating profit	2,578,126	2,490,375	2,174,844	1,395,210	1,745,364	900,733		865,287
Finance costs	(611,479)	(584,608)	(571,887)	(616,065)	(657,187)	(338,637)		(291,078)
Share of net profit of associates
and joint ventures accounted
for using the equity method	527,502	448,108	502,577	448,394	427,960	266,354		231,494
Profit before income tax	2,494,149	2,353,875	2,105,534	1,227,539	1,516,137	828,450		805,703
Income tax	(632,142)	(571,717)	(471,273)	(263,324)	(410,633)	(206,881)		(209,340)
Profit for the year/period	1,862,007	1,782,158	1,634,261	964,215	1,105,504	621,569		596,363
Profit attributable to:
Equity holders of the Company	639,387	527,431	763,000	387,745	388,491	273,274		219,770
Non-controlling interests	1,222,620	1,254,727	871,261	576,470	717,013	348,295		376,593
	1,862,007	1,782,158	1,634,261	964,215	1,105,504	621,569		596,363
					As at 31 December							As at 30 June
			2015		2016		2017		2018	2019			2020
		HK$'000	HK$'000		HK$'000		HK$'000		HK$'000			HK$'000
Consolidated Statement of
Financial Position
Land use rights	5,759,693	5,686,092	6,334,061		5,897,291		-			-
Property, plant and equipment	20,493,102	18,960,072	19,834,777	18,803,723	20,351,560			19,631,549
Right-of-use assets			-		-		-		-	6,737,343			6,464,113
Intangible assets	48,977		65,043		69,909		60,069	68,143			68,970
Investments accounted for using
the equity method	5,603,976	5,421,257	5,972,997		5,524,722	4,773,800			4,895,836
Financial assets at FVOCI			-		-		-		509,111	723,781			602,955
Available-for-sale financial assets	565,065	518,458		958,574		-		-			-
Deferred income tax assets	98,890		91,491		63,520		54,091	54,914			53,769
Other non-current assets	596,801		-		-		-		-			-
Current assets	13,285,419	11,588,951	14,186,968	14,523,844	12,103,737			11,261,619
Total assets	46,451,923	42,331,364	47,420,806	45,372,851	44,813,278			42,978,811
Total liabilities	(21,830,331)	(18,220,114)	(20,484,587)	(19,581,570)	(18,309,693)			(16,631,329)
Non-controlling interests	(13,010,871)	(12,976,770)	(14,226,202)	(13,622,769)	(14,315,361)			(14,203,821)
Shareholders' equity	11,610,721	11,134,480	12,710,017	12,168,512	12,188,224			12,143,661

INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED 35

DEFINITIONS

In this report, unless the context requires otherwise, the following expressions shall have the following meanings:

"Board"	the board of Directors of the Company
"Company"	Tianjin Port Development Holdings Limited
"Director(s)"	the director(s) of the Company
"Group"	the Company and its subsidiaries
"HK$"	Hong Kong dollars, the lawful currency of Hong Kong
"Hong Kong"	the Hong Kong Special Administrative Region of the PRC
"Listing Rules"	the Rules Governing the Listing of Securities on the Stock Exchange
"Model Code"	the Model Code for Securities Transactions by Directors of Listed Issuers, Appendix 10 to the
	Listing Rules
"PRC" or "China"	the People's Republic of China
"RMB"	Renminbi, the lawful currency of the PRC
"SFO"	the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong)
"Share(s)"	ordinary share(s) of HK$0.10 each in the share capital of the Company
"Share Option Scheme"	the share option scheme of the Company adopted on 26 April 2006
"Shareholder(s)"	the holder(s) of the Shares
"Stock Exchange"	The Stock Exchange of Hong Kong Limited
"Tianjin Port Co"	天津港股份有限公司 (Tianjin Port Holdings Co., Ltd.*), a limited liability company incorporated
	in the PRC, the shares of which are listed on the Shanghai Stock Exchange (Stock Code:
	600717), and a non-wholly owned subsidiary of the Group
"Tianjin Port Group"	天津港(集團)有限公司 (Tianjin Port (Group) Co., Ltd.*), a limited liability company incorporated
	in the PRC and the Company's ultimate holding company
"U.S."	the United States of America
"US$"	United States dollars, the lawful currency of the U.S.
"%"	per cent

• for identification purposes only

36 INTERIM REPORT 2020 • TIANJIN PORT DEVELOPMENT HOLDINGS LIMITED

CORPORATE INFORMATION

EXECUTIVE DIRECTORS

CHU Bin (Chairman)

LUO Xunjie (Managing Director)△

SUN Bin+

WANG Junzhong

SHI Jing

INDEPENDENT NON-EXECUTIVE DIRECTORS

Japhet Sebastian LAW*+

CHENG Chi Pang, Leslie*△

ZHANG Weidong *+△

CHIEF FINANCIAL OFFICER AND COMPANY SECRETARY

CHAN Yeuk Kwan, Winnie

AUDITOR

Deloitte Touche Tohmatsu

Registered Public Interest Entity Auditor

PRINCIPAL LEGAL ADVISORS

Woo Kwan Lee & Lo, as to Hong Kong law

Appleby, as to Cayman Islands law

PRINCIPAL BANKERS

Agricultural Bank of China Limited

Bank of China (Hong Kong) Limited

Bank of Communications Co., Ltd. DBS Bank Ltd.

Industrial and Commercial Bank of China (Asia) Limited Nanyang Commercial Bank, Limited

PRINCIPAL SHARE REGISTRAR

Ocorian Trust (Cayman) Limited

P.O. Box 1350, Clifton House

75 Fort Street, Grand Cayman KY1-1108

Cayman Islands

HONG KONG BRANCH SHARE REGISTRAR

Tricor Investor Services Limited

Level 54, Hopewell Centre

183 Queen's Road East, Hong Kong

REGISTERED OFFICE

P.O. Box 1350, Clifton House

75 Fort Street, Grand Cayman KY1-1108

Cayman Islands

HEAD OFFICE AND PRINCIPAL PLACE OF BUSINESS IN HONG KONG

Suite 3904-3907, 39/F., Tower Two

Times Square, 1 Matheson Street

Causeway Bay, Hong Kong

INVESTOR RELATIONS

Email:	[e-mail]
Tel:	(852) 2847 8888
Fax:	(852) 2899 2086

WEBSITE

www.tianjinportdev.com

STOCK CODE

Hong Kong Stock Exchange: 03382

• Members of Nomination Committee, ZHANG Weidong is the chairman of the committee

• Members of Remuneration Committee, Japhet Sebastian LAW is the chairman of the committee
  * Members of Audit Committee, CHENG Chi Pang, Leslie is the chairman of the committee