China Merchants Holdings (International) Company Limited (¡°CMHI¡± or the ¡°Company¡±, HKSE code: 0144) is pleased to announce that, on 12 January 2016, the Company, Dalian Port (PDA) Company Limited (¡°Dalian Port¡±) and the placing agent entered into a share subscription agreement, pursuant to which, Dalian Port agreed to allot and issue, and the Company agreed to subscribe for approximately 1,180 million H-shares of Dalian Port at a consideration of approximately HK$4,332 million (or HK$3.67 per H-share). The subscription shares represent approximately 26.67% of the existing issued share capital of Dalian Port as at the date hereof, and approximately 21.05% of the issued share capital of Dalian Port as enlarged by the allotment and issuance of the subscription shares. On the same day, the Company received a letter of commitment from the parent company of Dalian Port, Dalian Port Corporation, in respect of the acquisition, pursuant to which, Dalian Port Corporation agreed to allow certain voting commitment for the directors and supervisors of Dalian Port to be nominated by the Company.
Mr. Li Jianhong, Chairman of the Board of Directors of CMHI, said, ¡°The entering of a share subscription agreement, which allows CMHI to become the second largest shareholder of Dalian Port after the completion, is one of the key strategic investments for CMHI to further improve the layout of existing ports network and to position the Company to become a global leading comprehensive port-service provider going forward. Dalian Port, being a major shipping center in Northeast Asia and a hub in Northeast China, is of great strategic significance. The strategic and economic value of Dalian Port will gradually materialize, with, on one hand, the Government¡¯s plan of implementing measures to revitalize the economies of Northeastern region of China, and on the other hand, the establishment of China-Japan-South Korea Free Trade Area.¡±
Being one of the flagship enterprises in the port industry in Liaoning province, Dalian Port has global leading ports infrastructure, operational technology and management, and is situated in a superior geographical location. Dalian Port also has a wide range of dedicated ports, including a 450,000-tonne crude oil terminal, which is currently the world¡¯s largest, a 400,000-tonne ore terminal, a global leading container terminal that could accommodate mega vessels, and an automobile terminal, which handled 68.5% of the imported crude oil, 96.7% of international containers and 100% of foreign traded vehicles in North-eastern China. There are currently 88 international shipping routes and 13 international direct lines calling at Dalian Port, covering and connecting to more than 160 countries and 300 terminals around the world.
In 2014, as cargo throughput handled by Dalian Port reached 350 million tonnes, cargo throughput of the overall Dalian port zone reached 420 million tonnes, enabling the port zone to become the ninth largest port in the world and the seventh largest port amongst the coastal ports in China. Containers throughput handled by Dalian Port was 10.01 million TEUs, thus driving the overall Dalian¡¯s region containers throughput to 10.13 million TEUs, enabling the overall container operation in Dalian to become the fourteenth largest container port in the world and the seventh largest amongst the coastal ports in China. Revenue of Dalian Port reached RMB 11.44 billion, an increase of 23.3% year-on-year, with a net profit of RMB 650 million, an increase of 14.4% year-on-year.
Mr. Li Jianhong emphasizes: ¡°CMHI¡¯s investment in Dalian Port is not merely a financial investment, but more importantly, it enables the formation of a mutually complementary cooperation in terms of sharing of resources and operational capability. Besides, the investment in Dalian Port also signifies a great leap forward by CMHI in the consolidation of port assets in China. As an integrated port with comprehensive operations, Dalian Port will provide valuable experience and capability to support the comprehensive development of CMHI¡¯s overseas ports and the logistics operation in related to ports. Meanwhile, through the investment, CMHI would also be able to further enhance the domestic port network, while simultaneously help facilitate the business growth and efficiency improvement of Dalian Port through its advanced management capabilities, and thus achieving mutual benefits.¡±