China Merchants Group (hereinafter referred to as CMG) is an important state-owned backbone enterprise directly managed by the Central government. Headquartered in Hong Kong, CMG is one of the earliest Chinese enterprises established and operated in Hong Kong. The overall characteristics can be summarized as a century-old comprehensive central government-owned enterprise stationed in Hong Kong.

In 2020, various economic indicators of CMG reached new highs again: The operating revenue was 813.7 billion Yuan, up 13.0% year on year; the total profit was 175.1 billion Yuan, up 7.4% year on year; and the net profit was 137.1 billion Yuan, up 8.3% year on year. By the end of 2020, its total assets reached 10.3 trillion Yuan, among which the total assets and net profit ranked first among central government-owned enterprises.CMG has become one of the 8 central government-owned enterprises that have been awarded Grade A in the business performance assessment by the State-owned Assets Supervision and Administration Commission of the State Council for 16 consecutive years and “Enterprises with outstanding performance” for five consecutive terms.In the Fortune Global 500 list released in 2020, CMG and its subsidiary China Merchants Bank were listed again, and CMG became an enterprise with two Fortune Global 500 companies.

During the 13th Five-Year Plan period, the annual compound growth rate of all economic indicators of CMG exceeded 10%, among which the compound growth rate of the operating revenue reached 33.9%, the compound growth rate of the total profit was 17.3%, the compound growth rate of the net profit was 14.5% and the compound growth rate of the total assets was 10.6%.Founded in 1872 during the Westernization Movement, CMG is a pioneer of China’s national industry and commerce.As the first joint-stock company in modern China, CMG established the first merchant fleet, the first bank and the first insurance company in modern China, started China’s modern national shipping industry, and drove the development of many other modern industries, thus playing an important role in China’s modern economic history and social development.In 1978, CMG started to reform and open up, and in 1979, it developed Shekou Industrial Zone, China’s first industrial zone opening to the outside world, which had a wide influence both at home and abroad, and successively founded China Merchants Bank, the first joint-stock commercial bank completely held by corporate legal entity, and Ping An Insurance Company, China’s first joint-stock insurance company, providing useful experience for China’s exploration of reform and opening up.  

CMG is a comprehensive enterprise with diversified business. At present, CMG Mainly focuses on the three core industries of comprehensive transportation, characteristic finance, and comprehensive development and operation of cities and parks, and is transforming from the three main industries to the three platforms of industrial operation, financial service, investment and capital operation.

CMG is the world’s leading port investor, developer and operator. It has established a relatively complete port network group in the main coastal hub ports of China, invests or invests and has the right to manage wharfs throughout Hong Kong, Taiwan, Shenzhen, Ningbo, Shanghai, Qingdao, Tianjin, Dalian, Yingkou, Zhangzhou, Zhanjiang, Shantou and other container hub ports, making the business successfully covering Southeast Asia, Africa, Europe, Middle East, North America, South America, Oceania, etc.In 2020, the port sector of CMG completed a container throughput of 123 million TEUS and a bulk cargo throughput of 836 million tons, ranking first in the world in terms of total cargo throughput and equity throughput. 

Shipping industry is the ancestral property and main business of CMG. By the end of 2020, CMG’s shipping business fleet has a total transport capacity of 347 vessels (including orders), totaling 45.53 million DWT, ranking second in the world, including 51 VLCCs (very large tanker) and 33 VLOCs (very large ore carrier), which in scale are ranked first in the world.  In terms of scale, the refined oil fleet ranks first in the Far East, and the ro-ro fleet ranks first in China. After asset reorganization and capital operation, CMG’s Shipping has formed the business pattern of “oil, bulk, gas and special”, with transportation routes all over the world. Now, CMG is actively building digital ships, building smart shipping, creating “Xinhailiao” benchmark ships, and making every effort to build a world-class shipping enterprise.  

Sinotrans Limited (referred to as “Sinotrans”) is a secondary subsidiary held by CMG, and a unified operating platform and brand of logistics business. With the vision of building a world-class intelligent logistics platform enterprise, SINOTRANS has a service network covering the whole country and major economic zones around the world. In terms of the global third-party logistics and freight forwarding services, it ranked eighth and fourth in the world respectively. By the end of 2020, it had more than 1,100 domestic enterprises in 32 provinces, autonomous regions, municipalities directly under the Central Government and Hong Kong, and 77 overseas institutions located in 39 countries and regions.

China Merchants Expressway Network Technology Holdings Co., Ltd. (hereinafter referred to as China Merchants Expressway) subordinate to CMG, has been focusing on expressway investment and development of expressway operation for many years, with business scope including four sectors of investment and operation, transportation technology, smart transportation and CMG Ecology, covering the important links of the entire industrial chain of expressway, and has gradually grown into a comprehensive expressway investment and operation service provider with the largest investment scale, the widest coverage area and the longest investment and operation mileage among the listed expressway enterprises in China. At present, the expressways, bridges, tunnels and other toll road projects invested and operated by China Merchants Expressway are mainly distributed on the national expressway trunk lines, covering 21 provinces, autonomous regions and municipalities such as Beijing, Tianjin, Guangdong, Zhejiang and Guangxi, with a total mileage of 10,963 kilometers, of which the mileage of the management project is up to 1,799 kilometers. 21 research and development platforms at the national, provincial and ministerial levels have been established, forming a business form of the entire expressway industry chain from survey, design, characteristic construction to investment, operation, maintenance and service.

China Changjiang Shipping Group Co., Ltd. (hereinafter referred to as CSC) subordinate to CMG, is the largest inland water shipping company in China, widely develops the Yangtze River Economic Belt, and plays the role of main force of a state-owned enterprise during transportation of bulk cargo in the Yangtze River, rescue and relief work and reception mission of the National First- and Second-Class Guards of the Three Gorges of the Yangtze River, known as the “Yangtze River National Team”. It is mainly engaged in the Yangtze River shipping, cruise tourism and port and shipping services. It is building a regional company in the Yangtze River Economic Belt with “connection to rivers and seas, land and water linkage, going green and environmental protection, innovation and leadership, and leading quality and efficiency”, and is making steady progress towards the strategic goal of “becoming China’s leading integrated service provider for inland water shipping and cruise tourism”. 

The CMG Financial sector has achieved the “4+N” business layout, covering banking, securities, insurance, direct investment, various finance (financial leasing, bad asset management) and other fields, creating a comprehensive financial service platform with full license and full life cycle. Through the empowerment of financial technology, strengthen innovation and leadership, build service characteristics, and strive to provide customers with high-quality financial services with good experience and high value. The financial sector implements the concept of “strengthening the country with industry, serving the country with finance, and integration of industry and finance”, and continues to strengthen the construction of “three capabilities” of wealth management, financial technology, and risk management and control, to build a trillion-level pension platform and a trillion-level private placement platform.

China Merchants Bank, initiated by CMG and with CMG as the largest shareholder, is a leading joint-stock commercial bank in China. Its retail business has established a leading position in the industry earlier, and the return on capital, asset quality, and capital market valuation and other indicators are in the front rank of domestic listed banks. In 2020, China Merchants Bank ranked 17th in terms of Tier 1 Capital and 9th in terms of brand value in the global bank rankings published by the British magazine The Banker.

China Merchants Securities is one of the leading listed securities companies in China. By the end of 2020, China Merchants Securities had set up 12 branches and 259 securities business departments in Beijing, Shanghai, Guangzhou, Shenzhen and other cities, and established subsidiaries in the Hong Kong Special Administrative Region, the United Kingdom, Singapore, South Korea and other places through China Merchants Securities International Co., Ltd. It has built a domestically and internationally integrated comprehensive securities service platform, and maintained the Class A and Level AA classification regulatory rating for 13 consecutive years, setting a model for compliance operation.

Bosera Funds is one of the fund companies with the largest asset management scale in China. By the end of 2020, the total assets managed by Bosera Funds exceeded 1.33 trillion Yuan, of which, the total public offering assets managed by Bosera Funds after excluding monetary funds and short-term wealth management bond funds exceeded 401.2 billion Yuan.

China Merchants Renhe Life Insurance Co., Ltd., established after the successful resumption of trading of Renhe Insurance, had the insurance premium of more than 10 billion Yuan in 2020, and has achieved institutional layout in Guangdong Province, Jiangsu Province and Henan Province. China Merchants Renhe Life will continue to promote the implementation of the four major strategies of “value leading, innovation driven, technology empowerment, and risk control guarantee”, aim to become a first-class insurance service provider with innovative characteristics, and give full play to the advantages of shareholders and late-movers, to start steadfastly and be refined and excellent.

China Merchants Venture Capital is an enterprise venture capital platform for CMG to promote the integration of industry and innovative technology through investment, focusing on discovering, cultivating and integrating industrial technology innovation projects in CMG’s industrial value chain. By the end of 2020, China Merchants Venture Capital had deployed 26 sub-funds and more than 100 innovation projects, with assets under management of 11.8 billion Yuan.

China Merchants Capital is an important platform for CMG’s equity investment and asset management. It manages diversified funds and makes professional and market-oriented investments. By the end of 2020, it actively managed 48 RMB funds and USD funds, with assets under management equivalent to more than RMB 280 Billion Yuan.

China Merchants Leasing adheres to the original intention of integrating industry and finance, actively expands industry and finance cooperation within the group, adheres to market-oriented and professional operations, and strives to become a first-class financial leasing company with distinctive characteristics in China, to provide customers with comprehensive, high-quality and efficient financial leasing solutions.

China Merchants Ping An Assets focuses on resolving major risks, continues to focus on the main business of bad assets, serves the market needs, innovates profit models, invests and manages alternative assets with the concept of investment banking and fund-based operation mode, and is committed to building the most distinctive and leading local asset management company in China.

China Merchants Finance adheres to the innovation and pioneering spirit of CMG, and solely invested in and initiated the establishment of CMG Fintech in 2017, using technology to build a powerful financial service platform to support the building of risk management and control capabilities and wealth management capabilities. At the same time, CMG Fintech is also the digital contractor of CMG, helping the Group’s digital transformation and innovation.

CMG provides comprehensive development and operation services for cities and parks through China Merchants Shekou, Zhangzhou Development Zone and other entities. China Merchants Shekou was born in response to reform and opening up. It adheres to the comprehensive development model, and with the “Port-Park-City” as the spatial form, creates a development and operation ecosystem in the area through the full business chain of “investment-financing-construction-management-retirement”, to provide government customers with overall solutions for area development in urban planning, development and operation, to provide customers with overall solutions for operation services in industrial incubation, growth, and growing stronger and larger, and to provide individual customers with overall solution for a better life in residence, shopping, life services, medical treatment, education, leisure and entertainment. In 2020, the company had the contracted sales of nearly 280 billion Yuan, ranking among the top ten in the industry, with business covering over 111 cities and regions around the world, developing over 500 high-quality projects, and achieving leaps in comprehensive development. It implements refined operation in stock parks to enhance industrial agglomeration, creates empowerment and vitality for space, sets up high-end fleets, and innovates duty-free business, to create a new pattern for cruise industry.

CMG also has strong strength in the fields of industry and trade. In the field of marine equipment manufacturing, China Merchants Industry Holdings Co., Ltd. (hereinafter referred to as CMI) currently has seven major equipment repair and manufacturing bases in China, and has built an industrial cluster of marine engineering and cruise ship manufacturing in Haimen and delivered China’s first polar expedition cruise ship. The dredger built won the National Science and Technology Progress Special Award, and the comprehensive capabilities of marine equipment manufacturing, R&D and design (overall scale and production capacity) ranks among top three in China. China Merchants HOI TUNG Trading Co., Ltd. (hereinafter referred to as China Merchants HOI TUNG) was established in Hong Kong in 1972. As the only comprehensive trading platform under CMG, it has developed into a comprehensive trading company integrating food, transportation and bulk trade, and is exploring new businesses such as big health. China Merchants HOI TUNG has a wide business network, and sets up branches in 8 cities in China and in 7 overseas countries.

CMG attaches great importance to innovation-driven development, and continues to increase investment in innovative R&D and digitalization construction. CMG invested about 3.52 billion Yuan in research and development in 2020 (excluding China Merchants Bank), a year-on-year growth of 7.3%; vigorously made core technological breakthroughs, and won 28 scientific and technological awards at the provincial and ministerial levels and above, among which the road and bridge multi-source collaborative intelligent detection technology and equipment development project of China Merchants Communications Technology and the traditional Chinese medicine innovative research and development theory and key technology based on “substance-pharmacokinetics-efficacy” and its application project of Tianjin Institute of Pharmaceutical Research Co., Ltd. won the second prize of the National Science and Technology Progress Award. It ranked second in the enterprise demonstration base during the annual evaluation of “mass entrepreneurship and innovation” demonstration bases by the National Development and Reform Commission. CMG focused on the main business in each sector and accelerated the deep integration of cutting-edge technologies and industrial scenes; therefore, a number of hard-core technologies and industrial tools emerged. China’s first middle-water and deep-water semi-submersible drilling platform independently designed and built by CMI was successfully delivered, the world’s largest 130M piling ship built by CMI was put into operation, and two ro-ro passenger ships were listed as the best ship type list in 2020 by the world-renowned media SHIPPAX. The Aizhai Bridge project, participated by China Merchants Communications Technology, won the China Construction Engineering Luban Prize, using the structure that the tower and beam are completely separated and using the rock anchor sling structure for the first time in the world, setting four world firsts. The main line of the Zengjiayan Jialing River Bridge built by China Merchants Communications Technology in PPP model was opened to traffic, setting a number of records such as “the first road-rail dual-purpose rigid suspension bridge in China”. Efforts are made to accelerate the construction of “Digital CMG”, focusing on industrial layout in fields such as intelligent transportation, intelligent logistics, smart parks and communities, marine economy and digital technology. Six projects including intelligent ports have been selected as “pilots for the construction of a transportation power”, and the construction of Mawan intelligent port is highly recognized. The business volume of a number of industrial digital platforms such as E-Port, logistics “Yunyitong”, and China Merchants Haofang increased steadily, and the cross-border e-commerce logistics business increased by 125.9% year on year.

CMG is an important participant and promoter of the national Belt and Road Initiative. In 2020, CMG continued to improve the global port layout and prudently operated stock projects. The formal delivery of 8 terminals in Dafei Project was completed, and the global port layout expanded to 27 countries and 68 ports/terminals. Hambantota Port in Sri Lanka and TCP Terminal in Brazil successfully introduced strategic investors. Under the circumstance that the global COVID-19 epidemic impacted the economy of the hinterland of overseas ports during the year, all main control and management terminals in places such as Sri Lanka, Brazil, Djibouti and Togo operated steadily in their respective regions, with leading performance. Efforts are made to pragmatically promote the comprehensive development of overseas parks, and actively create high-quality parks. During the year, the China-Belarus Industrial Park introduced 12 new resident enterprises, with the number of enterprises up to 68 and the contracted investment amount up to more than US$1.2 billion; 112 enterprises settled in the Djibouti International Free Trade Zone; Hambantota Lingang Industrial Park in Sri Lanka introduced key enterprises, with the planning investment of 300 million US dollars; 91 enterprises successfully settled in Laos Saisetha Comprehensive Development Zone, among which 39 enterprises have put into production. CMG has built a stable and efficient integrated logistics service network, the volume of international trains and containers have grown significantly against the trend, with the market share of over 12%; the first shipment of JiAi cross-border freight trains was completed, developing a new model of cross-border combined transport by road, by sea and by rail in JiAi.

The number of China-Europe and China-Asia international trains was up to 1,580, a year-on-year increase of 25.6%; and 157,000 TEUs of goods have been shipped, a year-on-year increase of 21.7%.

CMG leverages its fine tradition of taking root in Hong Kong and serving Hong Kong, and contributes to safeguarding “One Country, Two Systems” and the prosperity and stability of Hong Kong. Miao Jianmin, chairman of CMG, was elected as the 16th President of the Hong Kong Chinese Enterprises Association, calling on member enterprises to actively respond to the challenges brought by the COVID-19 epidemic and strive to promote Hong Kong’s integration into the new development pattern of China. CMG actively speaks out, firmly supports the national security legislation of the Hong Kong Special Administrative Region, firmly upholds the authority of the Central Government, and earnestly safeguards the authority of the basic laws of Hong Kong. As a major warehousing service provider for rice and red wine in Hong Kong, CMG has made positive contributions to safeguarding people’s livelihood in Hong Kong during the COVID-19 epidemic. In 2020, CGM invested nearly 15 million Hong Kong dollars in public welfare funds in Hong Kong.

With its long history and strong strength, CMG has a wide range of influence in the industrial and commercial circles both at home and abroad. During the 14th Five-Year Plan period, CMG will hold high the great banner of socialism with Chinese characteristics, follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully implement the spirt of the 19th National Congress of the Communist Party of China and the second, third, fourth and fifth plenary sessions of the 19th Central Committee of the Communist Party of China, thoroughly implement the spirit of General Secretary Xi Jinping’s important expositions on the reform and development of state-owned assets, state-owned enterprises and Party building, rely on the new development stage, implement new development concepts, serve to build a new development pattern, and adhere to the general tone of making steady progress. With promoting high-quality development as the theme, deepening the supplier’s structural reform as the main line, reform and innovation as the fundamental driving force, and meeting the increasingly growing needs of people for a better life as the fundamental purpose, CMG will better coordinate development and security, further improve quality and efficiency, deepen the reform of state-owned enterprises, strengthen the drive of innovation, optimize the layout structure, prevent major risks, improve the quality of Party building, unswervingly strengthen, improve and expand the CMG, and accelerate the construction of a world-class enterprise, to make greater contributions to promoting the sustainable and healthy development of the economy and society, and building a modern socialist modernization in an all-round way.