Shenzhen ChiA (00022. SZ) disclosed its 2017 annual report. In 2017, the total operating revenue was 2.456 billion yuan, a year-on-year increase of 3.14%; The net profit attributable to shareholders of the listed company was 504 million yuan, a year-on-year decrease of 5.24%.

Shenzhen Chiwan mainly operates 6 container berths and 7 bulk cargo berths in Shenzhen Chiwan Port Area, 3 container berths in Mawan Port Area, and 5 bulk cargo berths in Dongguan Machong Port Area, and participates in Shandong Laizhou Port Area. Shenchiwan completed a cargo throughput of 69.847 million tons throughout the year, a year-on-year increase of 1.8%.

According to the annual report of Shenchiwan, in 2017, the three major container ports in South China completed a throughput of 66.11 million TEUs, a year-on-year increase of 5.9%. Among them, Shenzhen Port completed a container throughput of 25.25 million TEUs, a year-on-year increase of 5.3%. As a container hub port in the South China region, Shenchiwan actively responded to the adjustment of alliance liner routes, completing a container throughput of 5.374 million TEU throughout the year, a year-on-year increase of 2.9%, and accounting for 21% of the market share of Shenzhen Port. In terms of bulk cargo throughput, the total annual throughput of bulk cargo was 21.203 million tons, a year-on-year increase of 12.7%.

Shenchiwan stated that it plans to enter the Ro/Ro terminal warehousing business market in the future, and gradually expand its domestic and even overseas commercial vehicle Ro/Ro terminal business starting from the Ro/Ro logistics project, cultivating new business growth points besides containers and bulk cargo.

For the development of Shenchiwan, the industry competition with China Merchants Port has already affected its development potential. Shenchiwan stated that it will continue to pay attention to opportunities for resource integration and investment expansion within the region, and further improve and expand its business layout by leveraging the company's financing platform and brand advantages. At the same time, we will cooperate with the progress of fulfilling the commitments made by shareholders in the same industry competition, actively seek opportunities to leverage the synergies between capital and business, thereby enhancing the overall competitiveness of the company and promoting its leapfrog development.

To this end, in August 2017, Shenchiwan signed a supplementary agreement with China Merchants Port, FATTEN INVESTMENGTS, and MEDIA PORT INVESTENTS, agreeing that Shenchiwan would exercise control over MEDIA PORT INVESTENTS, thereby achieving control and consolidation of Shenzhen Mawan Port Co., Ltd., Shenzhen Mawan Port and Shipping Co., Ltd., and Shenzhen Magang Warehouse Code Co., Ltd.

At the same time, Shenchiwan has also signed a custody agreement with China Merchants Port to manage some shareholder rights and powers corresponding to the 80% equity of Mega Shekou Container Terminals Limited directly held by China Merchants Port, thereby further enhancing its influence and sustainable development capacity in the western port area of Shenzhen.

On December 1, 2017, Deep Bay and China Merchants Group (Hong Kong) signed an Intentional Agreement for Restructuring. After the acquisition is completed, China Merchants Hong Kong Connect and Broadford International jointly hold 371 million A-shares and 55.31 million B-shares in Shenzhen Chiwan, accounting for 66.10% of the total issued share capital of Shenzhen Chiwan (including 57.52% A-shares and 8.58% B-shares); Nanshan Group, Malai Warehousing, and Jingfeng Enterprises will no longer hold shares in Shenchiwan. The controlling shareholder of Shenchiwan will be changed from China Merchants Port to China Merchants Port Connect, and the actual controller will still be China Merchants Group.