01 Introduction of Ningbo-Zhoushan Port
Ningbo-Zhoushan Port is an important ocean-going container trunk port in mainland China. It is the largest iron ore transfer base and crude oil transfer base in China. It is also an important liquid chemical storage and transportation base in China and an important coal and grain storage and transportation base in East China.
Ningbo-Zhoushan Port is located at the T-shaped junction of the Yangtze River Economic Belt and the national north-south coastal transport corridor. It is close to the main international waterway in Asia-Pacific region. It can directly cover the Yangtze River Economic Belt and the Silk Road Economic Belt through multimodal transport at home. It can directly face East Asia, ASEAN and the whole Pacific Rim.
In 2017, Ningbo-Zhoushan Port Co., Ltd. completed 720 million tons of cargo throughput, an increase of 8.4% over the same period last year, and completed 25.97 million standard boxes of container throughput, an increase of 13.8% over the same period last year. Among them, the volume of ore receiving and unloading reached 132 million tons, an increase of 14.1%, coal loading and unloading 43.58 million tons, an increase of 10.4%, crude oil receiving and unloading 71.96 million tons, an increase of 3.7%, liquefied products throughput 9.8 million tons, an increase of 8%, grain receiving and unloading 6.55 million tons, an increase of 5.1%.
As of December 31, 2017, the total assets of the company amounted to 62.206 billion Yuan, and its operating income reached 18.183 billion Yuan, an increase of 11.38% over the previous year. The net profit attributable to shareholders of listed companies reached 2.677 billion Yuan, an increase of 16.43% over the previous year.
From 2013 to 2017, the operating income and net profit of Ningbo-Zhoushan Port are shown in Figures 1 and 2.
Fig. 1. Operating income of Ningbo Zhoushan Port Company Limited (2013-2017)
Fig.2. Net profit attributable to equity holders of the parent company of Ningbo Zhoushan Port Company Limited (2013-2017)
During the five years from 2013 to 2017, the company's business income basically showed an increasing trend year by year, from 13.396 billion Yuan in 2013 to 18.183 billion Yuan in 2017. From 2013 to 2015, the growth rate of the company's business income gradually slowed down, but it also maintained a growth rate of more than 15%. In 2016, there was a negative growth, but in 2017, the situation improved. Net profit continued to decline from 2013 to 2016, yet in 2017 a positive growth appeared. The main reason is due to the downturn of the port and shipping market and the increasingly fierce competition of the port.
From the development of the whole industry, because of the recovery of the global economy and moderate inflation, China's national economy is steadily turning into a good one, which is turning from a stage of high-speed growth to a stage of high-quality development.
In terms of external conditions, with the further development of the national strategy such as "the belt and road initiative", "Yangtze River Economic Belt", "maritime power", "made in China 2025" and "Internet +", the state has been actively promoting the development of the new system of open economy, which has promoted the development of Ningbo- Zhoushan port.
From angle of Ningbo-Zhoushan port, after the company's own management system is constantly innovating and the substantive integration is completed, Zhejiang province has gradually formed a "one body, two wings and multiple links" port development pattern, which will be conducive to build Ningbo-Zhoushan port quickly into a world-class modern hub and a world-class port operation enterprise.
The main business of Ningbo-Zhoushan Port Co., Ltd. is divided into six parts: container handling and related business, iron ore handling and related business, crude oil handling and related business, other cargo handling and related business, trade sales business, integrated logistics and other business.
From 2013 to 2017, the six sectors' operating income and its proportion to total revenue are shown in Figures 3 and 4.
Fig.3. Operating income of major businesses (Unit: in 100 million RMB)
Fig.4. Percentage of total operating income of major businesses(2013-2017)
1. Container handling and related business
In 2017, the company completed the container throughput of 25.97 million standard boxes, an increase of 13.8% year on year. The growth rate is in the leading level in China's coastal ports. It has made outstanding contributions for Ningbo-Zhoushan port to be the first port in the world with a cargo throughput over 1 billion tons and ranked No.1 for nine consecutive years in the world
The company's operating income of container handling and related business sector was 1.656 billion Yuan in 2013, 1.914 billion Yuan in 2014, 2.227 billion Yuan in 2015, 2.653 billion Yuan in 2016 and 3.644 billion Yuan in 2017.
Over the past five years, business income has gradually increased, and the proportion has also increased. After 2015, due to the development of Rail-sea intermodal transport, the growth rate has further increased.
2. Iron ore handling and related business
The company's iron ore handling and related business sector business revenue has gradually declined in the past five years, and rebounded in 2017.
The main reasons for the decline of iron ore handling capacity are as follows: influenced by macroeconomic and port competition, the growth rate of global coastal ports' total throughput continues to slow down, and ports in Zhejiang province like Ningbo-Zhoushan port are facing price competition from surrounding ports, resulting in increased pressure of diversion of bulk cargo such as iron ore and coal.
3. Crude oil handling and related business
From 2013 to 2017, the total operating income of crude oil handling and related business sectors has not changed much, but the proportion has been declining.
The main reason is similar to iron ore. With the completion and commissioning of the relevant professional terminals in the surrounding ports, and the rise of railway freight rates, the diversion pressure of iron ore, crude oil, coal and liquefied products, which have contributed a lot to the company's throughput, is becoming more and more serious.
4. Other cargo handling and related business
Other cargo handling mainly includes bulk cargo, coal and other handling. The company's business income of other cargo handling and related business sectors was 1.811 billion Yuan in 2013, 1.724 billion Yuan in 2014, 1.424 billion Yuan in 2015, 1.538 billion Yuan in 2016 and 1.824 billion Yuan in 2017.
Operating income varies mainly with the change of loading and unloading volume of bulk cargo, coal and other goods.
5. Trade business
The company's trade business sector began to appear in 2014. Its business income was 1.482 billion Yuan in 2014, 4.556 billion Yuan in 2015, 3.535 billion Yuan in 2016 and 1.807 billion Yuan in 2017.
In 2015, business income rose sharply, mainly due to the synchronous growth of business income caused by the growth of trade sales volume of international trading company and the incorporation of Chaoyang Petrochemical Company into the Ningbo-Zhoushan port, which increased business income accordingly.
The gradual decline in business income after 2015 is mainly due to the decline in trade volume.
6. Logistics and other business
The company's business income of logistics and other business sectors is 5.678 billion Yuan in 2013, 5.583 billion Yuan in 2014, 5.921 billion Yuan in 2015, 6.629 billion Yuan in 2016 and 8.758 billion Yuan in 2017. The proportion of business income to total income has been as high as 40%.
