Dalian Port (PDA) Company Limited (H Share stock code: 2880; A Share stock code: 601880), yesterday announced its annual results for the year ended 31 December 2013 (the "year under review").

During the year under review, the Group achieved remarkable results. For the twelve months ended 31 December 2013, the Group's revenue amounted to RMB6,981,980,200, representing an increase of 50.3% YOY. Gross profit (less taxes and surcharges) was RMB1,447,306,400, increased by 3.6% as compared to last year. The Group's profit attributable to owners of the Parent amounted to RMB682,582,600, representing an increase of 13.7% YOY. The increase of profit attributable to owners of the Parent was due to the growth of the throughput, increased oil tanks occupancy rate, the revenue growth of port logistics business generated by the commissioning of new assets, and the growth of government subsidies. Basic earnings were RMB15.42 cents per share, representing an increase of 13.7% YOY.

During the year under review, the Group's major business had sound performance. In 2013, the Group handled a total of approximately 42.722 million tonnes of oil and liquefied chemicals, an increase of 10.7% YOY, of which approximately 21.022 million tonnes were imported crude oil, an increase of 4.7% YOY. In the Container Segment, the Group handled approximately 10.86 million TEUs, an increase of 21.8% YOY, of which approximately 9.912 million TEUs were handled by the Group at Dalian port, an increase of 23.8% YOY. In the Automobile Terminal Segment, the Group handled 357,148 vehicles, an increase of 57.6% YOY. In the Ore Segment, the Group handled approximately 22.759 million tonnes, an increase of 1.2% YOY. In the General Cargo Segment, the Group handled approximately 32.314 million tonnes of cargoes, an increase of 0.5% YOY. In the Bulk Grain Segment, the Group handled approximately 8.052 million tonnes of bulk grain, an increase of 11.1% YOY. In the Passenger and Ro-Ro Segment, the Group transported approximately 3.793 million passengers, a decrease of 6.6% YOY and approximately 947,000 vehicles, an increase of 13.8% YOY.

In oil segment, the Group's additional bonded crude oil storage tanks of 800,000 cubic meters and bonded refined oil storage tanks of 5,000 cubic metres were successfully put into operation, besides No. 8 storage tank. Thereby the Group made an important step towards setting up a bonded warehousing business. At the same time, the Group stepped up the Dalian Port - Laizhou Bay oil transshipment project. Upon the opening of Dalian Port - Laizhou Port crude oil transshipment channel, the Group successfully secured customers to rent crude oil storage tanks of 400,000 cubic meters at its port, thus expanding the Group's crude oil transshipment business. Additionally, in respect of No. 9 storage tank and the storage tank under Phase II of Dalian North Petroleum Logistics Co.,Ltd., construction works were being carried out on schedule.

In container segment, the Group introduced two near-ocean routes, and added six domestic trade routes, and the maritime network system was further improved. At the same time, the Group adhered to the "Bohai Rim Strategy" to build a container transshipment hub at all-out endeavors. Leveraging on the capacity of vessels, the Group ran the lines from Dalian to Weifang, Dalian to Jingtang and Dalian to Huanghua. The Group also increased departures for trains running between Dandong and Caofeidian, thus further extending the reach of its sub-lines. Additionally, the Group teamed up with a railway company to run three passenger train lines and the Manzhouli cross-broader transit lines, offering cargo owners in the hinterland access to a full range of tailored integrated logistics services via sea-to-rail model. With self-owned trailers, the Group integrated the resources of other vehicles for the development of inland highway transportation.

In automobile segment, the Group continued to enhance terminal services capabilities and to enhance the influence of the port. While maintaining stable cargo sources of foreign trade through a number of initiatives including service innovation, the Group stepped up the transformation of port business model to some extent. The Group established Dalian Hajia Automobile Terminal Co. Ltd with Shanghai Anji Automobile Logistics Co. Ltd, and opened the Dalian - Yantai domestic trade routes. As a result, the Group recorded a remarkable increase in the transshipment of SAIC branded goods vehicles.

In ore segment, the Group was well-positioned to provide personalized services to steel plants in the hinterland. The Group stabilized the existing customer base, and upgraded specialized service projects. The Group also continuously explored new business opportunities by introducing new products and new customers. With optimal service solutions and value-added services, the Group solicited transshipment cargo sources, further beefing up the transshipment business; with an integrated trade business information and logistics platform, the Group expanded ore trading operations, effectively increased market share in the ore trading business. At the same time, leveraging on competitive advantages in terms of location, the Group solicited ore trading business and bonded ore business, expanded mixed ore operations on the basis of port area bonded capabilities, and formed a ore of Dalian port standards. The ore has successfully entered into a stage of water transfer.

In general cargo segment, the Group took advantage of Longzu transport's stabilizing role in the steel transportation business via rail-to-sea inter-modal, to promote steel trade service platform and the construction of logistics park. With value-added services, the Group solicited new sources of land transportation of steel sourced from small to middle-sized steel plants in its hinterland as well as Bohai Rim region. At the same time, the Group stayed ahead of the changes in cargo sources, in order to assure the coal transshipment volume of key customers. By keeping abreast of the latest developments of the coal market and maintaining constant contact with customers to exchange information, the Group ensured the steady transshipment volume of coal via rail-to-sea inter-modal and land transport mode. Additionally, the Group reinforced service capabilities and enhanced port competitiveness. Through cooperation with customers, the Group built a near-port bulk equipment assembly base in Dalian Bay port area and Changxing Island port region.

In bulk grain segment, by entering into annual lease agreements, the Group had locked up the domestic corn transshipments of certain targeted major customers. The Group ensured a stable and efficient corn supplies by timely adjustment of customer portfolio and freight composition with a focus on utilization of silos and grain carriers. With the arrival of the 200 grain carriers jointly invested by the Group and certain customers, the number of grain carries operated by the Group reached 1,700. Additionally, "Dalian Port Oil Trading Co., Ltd.", a wholly owned subsidiary of the Group, continued to expand driving the growth in the port logistics business.

In passenger and ro-ro segment, the Group developed new routes and adjusted routes resources. The Group opened a new ro-ro route between Lvshun port and Dongying port, and changed the route between Dalian port and Tianjin port to a route between Lvshun port and Tian port. Furthermore, the original seasonal operations were expanded to annual regular operations. At the same time, the Group actively promoted the Drop and Pull transportation business model, and signed a strategic cooperation agreement with Yantai Salvage Bureau for the purposes of building up a logistics platform for the Drop and Pull transportation business in the Liaoning and Shandong region. The Group also developed an e-ticket system whereby the Group simplified the process from tickets selling to boarding, therefore improved the efficiency of services.

In value-added services segment, the Group secured an increase in income by voyage charter and reasonable resource allocation. At the same time, the Group laid down plans to establish tugboat base in an attempt to reduce regional operating cost and to maintain a healthy development trend for tugging business. In markets outside Dalian, the Group adjusted strategy in a timely manner and optimized resource allocation in response to the increasingly volatile market landscape, so as to maintain a stable long-term customer base and to expand market share. The four tugboats with 7,200 horsepower all have been deployed in operation in 2013. By the end of December 2013, the Group had a total of 43 full-swing tugboats and four pilot boats. Among these vessels, 13 tugboats were leased out under long-term leases to other ports outside Dalian. The Group retained a leading tugging services position among its peers across the country.