Interim Report 2023

13 INTERIM REPORT 2023 associate company of the Group, was entitled the first prize of Science and Technology Progress Award for the “Electronic Import Order Platform Project of Shenzhen Western Terminal based on Alliance Chain and Cloud Technology” by the China Federation of Logistics & Purchasing. In pursuit of comprehensive development, the Group was committed to improving the global network layout and business synergies for overseas projects, strengthening overseas trade as a starting point, and joining hands with overseas parks to carry out professional promotion in areas with advantageous industries in China. As of the end of June 2023, 48 contracted enterprises moved into the HIPG industrial zone, including park in park, cement plants, duty- free shops, petrochemical and other industries. The industrial layout was further broadened, while the cooperative development with the ports was enhanced. Furthermore, 332 contracted enterprises moved into the Djibouti International Free Trade Zone, having increased by 45 enterprises as compared with the beginning of the year. Relying on the port and park resources at home and abroad, the Group leveraged the advantages of the platform of the “Made by Liaocheng” Djibouti Free Trade Zone exhibition center, actively developed the park ecosystem, opened channels for commodities to and from the ports, and facilitated the upstream and downstream extension of the value chain. In respect of operation management, the Group leveraged on SMP to build a one-stop integrated management platform to support the business analysis of container, bulk cargo, logistics parks, comprehensive development and smart technology. With digital technology as the key force, the Group made use of the smart tools to drive the reform of its operation and management methods, models and concepts. At present, the Group has basically realised the collection and management of full life-cycle information of assets, as well as the standardisation and online operation of major business processes. In addition, the Group also optimised the engineering management system and established an engineering management centre to carry out work. The Group kept on optimising profitability and continuously initiated measures to improve quality and efficiency. The business financial analysis framework was improved and reshaped, while the growth of costs and expenses was strictly controlled. By deepening the cost control to form a normalised mechanism for cost reduction and efficiency enhancement, the Group has achieved phased results on its lean operation. Regarding capital operation, the Group focused on improving asset quality and asset structure, and strengthening the capital operation. The Group took various measures to increase the value of its existing assets. In the first half of 2023, the Group announced the disposal of 45% equity interests in Ningbo Daxie to Ningbo Zhoushan Port Company Limited at a consideration of RMB1,845 million. This would enable the Group to better utilize its existing assets, realize asset value and optimize the regional layout, which were in line with the Group’s development strategy. As for marketing and commerce, the Group promoted the internal business synergies of the Greater Bay Area, creating high-quality shipping routes with “Customized Terminal Services”, and actively expanding the Southeast Asia shipping routes. The coordinated ports business in the Greater Bay Area continued to advance, and the business landscape covered all major regions in Guangdong Province. In the first half of 2023, the Group set up 5 new locations, reaching a total of 30 locations. In the first half of 2023, the accumulated container throughput was 140,000 TEUs and a total of 400,000 TEUs handled since the operation of the coordinated ports, serving nearly 6,000 import and export enterprises. As for overseas ports, the market share of TCP in Brazil further increased while the RORO business of HIPG in Sri Lanka further secured its leading position in the regional market.