Xiamen International Port : PORT DEVELOPMENT CO., LTD 2020 ANNUAL REPORT SUMMARY

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

廈門國際港務股份有限公司 XIAMEN INTERNATIONAL PORT CO., LTD*

(A joint stock limited company incorporated in the People's Republic of China with limited liability)

(Stock Code: 3378)

OVERSEAS REGULATORY ANNOUNCEMENT

This announcement is made pursuant to Rules 13.09(2)(a) and 13.10B of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited and the Inside Information Provisions under Part XIVA of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong).

The following announcement was released by Xiamen Port Development Co., Ltd., a subsidiary of Xiamen International Port Co., Ltd., whose A shares were listed on the Shenzhen Stock Exchange. The annual report summary of Xiamen Port Development Co., Ltd. for the year ended 31 December 2020 has been prepared in accordance with the generally accepted accounting principles of the People's Republic of China (the "PRC").

By order of the Board Xiamen International Port Co., Ltd

Cai Changzhen Company Secretary

Xiamen, the PRC, 18 March 2021

As at the date of this announcement, the executive Directors are Mr. Cai Liqun, Mr. Chen Zhaohui, Mr. Lin Fuguang and Mr. Chen Zhen; the non-executive Directors are Mr. Chen Zhiping, Mr. Fu Chengjing, Mr. Huang Zirong and Ms. Bai Xueqing; and the independent non-executive Directors are Mr. Liu Feng, Mr. Lin Pengjiu, Mr. Jin Tao and Mr. Ji Wenyuan.

* For identification purpose only

Stock code: 000905

Stock name: Xiamen Port

Ann no.: 2021-13

XIAMEN PORT DEVELOPMENT CO., LTD

2020 ANNUAL REPORT SUMMARY

§1 IMPORTANT

This information in this annual report summary is extracted from the full text of the annual report. Investors who wish to fully understand the details on the operating results, financial position and future development plan of the Company should carefully read the full text of annual report on such media designated by China Securities Regulatory Commission.

All the directors have attended the board meeting for the reviewing of the report.

Notice of non-standard audit opinions

□ Applicable √ Not applicable

The plan on distribution of dividends on ordinary shares or the plan on capitalization of capital reserve passed by the board of directors during the reporting period √ Applicable □ Not applicable

Whether the capitalization of capital reserve is effected

□ Yes √ No

The plan of the Company on distribution of dividends on ordinary shares which was considered and passed by this board meeting is as follows: to distribute a cash dividend of RMB 0.18 (including tax) per ten shares and zero bonus share (including tax) among all shareholders calculated on the basis of the total share capital of 625,191,522 shares, and not to capitalize capital reserve.

The plan on distribution of profit for preferred shares passed by board resolution during the reporting period

□ Applicable √ Not applicable

§2 GENERAL INFORMATION OF THE COMPANY

2.1 Company profile

Xiamen Port

000905

Stock exchange for listing

Contact person and contact way

Representative for securities affairsCai Quansheng

Zhu Lingling

20/Floor, Port Building, 31 Donggang North

20/Floor, Port Building, 31 Donggang

Road, Huli District, Xiamen

North Road, Huli District, Xiamen

0592-5826223 0592-5826220caiqs@xmgw.com.cn

0592-5826223 0592-5826220zhull@xmgw.com.cn

2.2 Principal operations or product introduction during the reporting period

During the reporting period, the principle businesses engaged in by the Company were loading and unloading in bulk/general cargo terminals and the relevant comprehensive logistics services, merchandise trading, sales of building materials, etc., the main business model has not undergone major changes. The port industry engaged in by the Company belongs to the basic industry of the national economy and is closely related to the macroeconomic development, and it possesses the characteristic of cyclicity as a result of the fluctuation in national economy and global economy. The economic development level of the port hinterland has an immediate impact on the throughput capacity of the port, and the product feature in the port is directly determined by the industries and the structure of cargo sources in the hinterland.

As the largest comprehensive logistics provider in Xiamen port area, the Company possesses of rare resources such as bulk/general cargo terminal and back yard, well-established port ancillary and value-added services, complete logistics business chain, forming a logistics service system that effectively links domestic and foreign trade shipping routes, sea, land, air, cruise and railway. In the Xiamen port area, the Company currently has an absolute leading position in the tugboat market and has a dominant leading position in such port logistics areas of loading and unloading of the bulk/general cargo, shipping agency, import and export container consolidation, tallying notarization, storage, transportation, sea-rail joint transportation and land-based port.

2.3 Key accounting data and financial indicators

2.3.1 Key accounting data and financial indicators for the past three years

Whether retroactive adjustments or restatements are required to be made by the Company to the accounting data for the previous years

□ Yes √ No

Unit: RMB

2.3.2 Key accounting data by quarter

Unit: RMB

Whether there is any material difference between the above-mentioned financial indicators or the sum thereofand that in such quarterly report(s) or semi-annual report(s) disclosed by the Company

□ Yes √ No

2.4 Share capital and shareholders

2.4.1 Number of ordinary shareholders and preferred shareholders with voting rights resumed and shareholding of the top ten shareholders

Unit: Number of shares

46,528

0

0

（ 廈門國際港務股份有限公司）

Chen Zifan

Liu Junfeng

Ning Shen

Yu Cuiping

Yang Ronghong

Yi Daxu

Vanguard Investment Australia Ltd. - Vanguard Emerging Markets Stock Index Fund (Exchange) (領航投資 澳洲有限公司－領航新興市場股 指基金（交易所）)

Chen Deyuan

Zhan Juxiang

State-owned legal person

Domestic natural person

Domestic natural person

Domestic natural person

Domestic natural person

Domestic natural person

0.17%

0.16%

Domestic natural personForeign legal person

Domestic natural person

0.12%

1,075,055

1,056,399

1,018,000

739,716

94,191,522

0.11%

668,697

0

1. Xiamen International Port Co., Ltd is the only one shareholder holding more than 5% hareholder of the

Company, the connected nature is controlling parent company, the nature of the

2. The other top ten shareholders of the Company have no connected relation with the of the listed company, and they are also not the concerted actionperson defined under "Measures for the Administration of the Acquisition of Listed

hip

shares of the Company through Credit Transactions

shares of the Company through Credit Transactions

shares of the Company through Credit Transactions

2.4.2 Total number of the preferred shareholders of the Company and the shareholding of the top ten preferred shareholders

□ Applicable √ Not applicable

There was no shareholding of preferred shareholders of the Company during the reporting period.

2.4.3 Set out below is the chart of the ownership and controlling relationship between the Company and the beneficial owner:

Note: in 2020, due to the integration of port resources in Fujian Province, Xiamen Port Holding Group Co.,Ltd. (廈門港務控股集團有限公司) ("Port Holding Group"), the indirect controlling shareholder of the

Company, was institutionalized and integrated into Fujian Province Port Group Limited Liability Company (福建 省港口集團有限責任公司) ("Fujian Port Group") organized and established by the State-owned Assets

Supervision and Administration Commission of the People's Government of Fujian Province (福建省人民政府國 有資產監督管理委員會) ("Fujian SASAC"), as a wholly-owned subsidiary of Fujian Port Group. On 25

February 2021, Port Holding Group completed the registration procedures for the industrial and commercial changes involved in this free equity transfer. After the completion of the industrial and commercial changes of this free transfer of the indirect controlling shareholder's equity, Fujian Port Group directly holds 100% of the equity in Port Holding Group, and Port Holding Group indirectly holds 386,907,522 shares, representing 61.89% of the total equity in the Company through Xiamen International Port Co., Ltd, (廈門國際港務股份有限公司)

("International Port"). The controlling shareholder of the Company is still International Port, and the actual controller of the Company is changed from the State-owned Assets Supervision and Administration Commission of Xiamen Municipal People's Government (厦门市人民政府國有資產監督管理委員會) to Fujian SASAC.

2.5 Corporate bonds

Whether there are any corporate bonds of the Company offered publicly and listed on stock exchanges which have not yet become due or have become due but not been fully settled as at the approval date of the annual report?

Yes

2.5.1 Basic information on corporate bonds

2.5.2 Latest track rating of and rating movements in corporate bonds

It is expected that the latest track rating of corporate bonds will be made in May 2021.

2.5.3 Key accounting data and financial indicators of the Company for the two immediately preceding years at the end of the reporting period

Unit: RMB'0,000

§3 DISCUSSION AND ANALYSIS OF OPERATION

3.1 Introduction to operations during the reporting period

In 2020, with the worldwide spread of the COVID-19 epidemic, the international economy saw a serious recession and the circulation for the supply chain of global industrial chain was blocked, by which the world political and economic situation became increasingly complex and severe. The Chinese government has maintained its strategic focus, accurately judged the situation, and carefully planned and deployed, to effectively overcome the adverse effects of the epidemic. Meanwhile, China actively fostered a new development layout with "the Big Domestic Circulation at the Main Position and the Mutual Promotion of the Domestic and International

Circulation" and became the only major economy in the world to realize positive economic growth, showing the robust resilience and growth potential of China's economic development. The port logistics industry was also hit by the COVID-19 epidemic. After experiencing the serious impact of stoppage and shut-down in the first quarter, China's port business gradually recovered from the second quarter and eventually achieved steady growth. According to relevant data, in 2020, the accumulated cargo throughput of ports in China was 14.5 billion tonnes, representing an increase of 4.3% as compared to the same period of 2019; the accumulated cargo throughput of Xiamen port in 2020 was 170.01 million tonnes, representing an increase of 1.8% as compared to the same period of 2019.

Under the leadership of the board of directors, the Company actively responded to the complex and changeable external environment, strengthened the normalized epidemic prevention and control, orderly promoted the resumption of work and production, strived to reduce the losses caused by the epidemic, took multiple measures to reduce costs and increase efficiency, continuously improved the management level, solidly promoted the key work, and completed various operation and management works well.

During the reporting period, the Company achieved an operating income of RMB15,705,576,300, representing an increase of 10.96% as compared to the same period of last year, which was mainly due to the further expansion and development of trade business, especially combined port and trade businesses; the net profit attributable to the shareholders of the parent company increased by 56.58% as compared to the same period of last year, which was mainly due to the fact that (1) the integration of bulk/general cargo terminal resources has achieved initial results; (2) for the tugboat business, the Company has actively explored the internal and external markets of the port, further expanded the extended services, and effectively improved the operation effectiveness; (3) the Company received the proceeds from the issue of new shares on a non-public basis at the end of 2019,which effectively reduced the cost of capital; and (4) the Company obtained the investment income from the disposal of the equity interest in Xiamen Road and Bridge Building Materials Co., Ltd.("Road and Bridge

Building Materials") during the reporting period.

(1) The cost of sales during the reporting period decreased by 44.84% as compared to the same period of last year, which was mainly due to the implementation of the new income standard, i.e. the storage fees and freight charges related to trade business were accounted for as operating costs during the reporting period.

(2) Other income during the reporting period increased by 97.07% as compared to the same period of last year, which was mainly due to the increase in government grants directly included in profit or loss for the current period during the reporting period.

(3) The investment income during the reporting period decreased by 98.26% as compared to the same period of last year, which was mainly due to the decrease in investment income of futures from trade business during the reporting period.

(4) The income from changes in fair value during the reporting period decreased by 138.18% as compared to the same period of last year, which was mainly due to the decrease in changes in fair value of other non-current financial assets during the reporting period.

(5) The credit impairment loss during the reporting period increased by 122.48% as compared to the same period of last year, which was mainly due to the increase in accounts receivable, and the corresponding increase in the amount of provision for bad debts during the reporting period.

(6) The gains from the disposal of assets during the reporting period decreased by 70.58% as compared to the same period of last year, which was mainly due to the gains from the disposal of assets due to the asset evaluation appreciation resulting from the investment by Xiamen Port Shipping Co., Ltd., a subsidiary of the Company, in a joint venture in the form of the tugboat in kind during the same period of last year.

(7) The non-operating income during the reporting period decreased by 37.88% as compared to the same period of last year, which was mainly due to the decrease of default of trade business customers and suppliers during the reporting period.

(8) The non-operating expenses during the reporting period decreased by 67.05% as compared to the same period of last year, which was mainly due to the compensation for litigation paid by Xiamen Port Transportation Co., Ltd., a subsidiary of the Company, and the estimated liabilities in an arbitration provided by Xiamen Port Logistics Co., Ltd. during the same period of last year.

(9) The net profit attributable to shareholders of the parent company during the reporting period increased by 56.58% as compared to the same period of last year, which was mainly due to the fact that during the reporting period, a. the integration of bulk/general cargo terminal resources has achieved initial results; b. for the tugboatbusiness, the Company has actively explored the internal and external markets of the port, further expanded the extended services, and effectively improved the operation effectiveness; c. the Company received the proceeds from the issue of new shares on a non-public basis at the end of 2019, which effectively reduced the cost of capital; and d. the Company obtained the investment income from the disposal of the equity interest in Road and Bridge Building Materials during the reporting period.

(10) Net cash flow generated from operating activities during the reporting period decreased by 33.26% as compared to the same period of last year, which was mainly due to the increase in cash payment for the purchase of goods and acceptance of labor services during the reporting period as compared to the same period of last year.

(11) Cash inflow generated from financing activities during the reporting period decreased by 31.57% as compared to the same period of last year, which was mainly due to the proceeds of RMB600 million received from non-public share offering during the same period of last year and the decrease in bank borrowings during the reporting period.

(12) Net cash flow generated from financing activities during the reporting period decreased by 194.91% as compared to the same period of last year, which was mainly due to the decrease in the cash inflow generated from financing activities during the reporting period.

(13) The net increase in cash and cash equivalents during the reporting period decreased by 188.05% as compared to the same period of last year, which was mainly due to the decrease in net cash flow generated from operating activities and financing activities during the reporting period.

During the reporting period, the Company focused on carrying out the following tasks:

• 1. Adhered to the guidance of Party building and performed our responsibility as the state-owned enterprise;

• 2. Strengthened epidemic prevention and control to ensure production safety;

• 3. Implemented strategic layout and promoted development momentum:

• (1) Gave full play to the role of capital market and capital center to reduce capital costs;

• (2) Promoted the integration and coordination, and gave play to the platform effect;

4. Carried out high quality development and enhanced our core competitiveness:

• (1) Consolidated and strengthened the main business, and expanded new business and new market;

• (2) Achieved the transformation and upgrading of logistics industry with market-orientated development;

• (3) Strengthened investment promotion and promoted the implementation of the overall strategy;

(4) Continuously enhanced service strength guided by scientific and technological innovation;

5.

Expanded the hinterland and accumulated the development potential of the port:

(1)

Accelerated the pace of "Go Globally" and improved regional networks construction;

(2) Deeply implemented hinterland strategy and constantly promoted sustainable development;

6. Strengthened internal management and improved quality, reduced cost and increased efficiency:

(1) Promoted the construction of financial sharing center to improve the efficiency of financial management;

(2) Optimized the management of facilities, equipment and assets, and improved the input-output efficiency;

• (3) Strengthened internal risk control and management to ensure the healthy development of the Company;

• (4) Driven by Innovation, gave full play to the talent effect, enhanced the soft power of the relevant respects, and effectively promoted the high-quality and rapid development of the Company;

7.

Paid close attention to safety and environmental protection, and built bottom line for safety.

3.2 Whether there was any material change in the principal businesses during the reporting period

□ Yes √ No

3.3 Products accounting for more than 10% of the Company's income from principal businesses or profit from principal businesses

√ Applicable

□ Not applicable

Unit: RMB

3.4 Whether there existed anyseasonalor periodic characteristics of operations, which requires special attention

□ Yes

√ No

3.5 Explanations of material changes in operating income, operating cost, total net profit attributable to the ordinary shareholders of the listed company or its composition during the reporting period as compared with the last reporting period

√ Applicable

□ Not applicableThe total net profit attributable to ordinary shareholders of listed companies during the reporting period increased by 56.58% over the previous year, which was mainly due to the increase in the net profit of the Company's wholly-owned subsidiaries during the reporting period.

• 3.6 Facing delisting situation

  □ Applicable

  √ Not applicable

• 3.7 Related matters involving financial report

3.7.1 Explanation of changes in accounting policies, accounting estimates and audit method in comparison with the financial report of the previous year √ Applicable □ Not applicable

The Ministry of Finance issued the Notice on Revising and Issuing the Accounting Standards for Business

Enterprises No. 14 - Revenue (Cai Kuai [2017] No. 22) (《關於修訂印發<企業會計准則第 14 號--收入>的 通知》) (財會[2017]22 號) (hereinafter referred to as Cai Kuai [2017] No. 22) on 5 July 2017, and also required domestic listed enterprises to adopt from 1 January 2020.

The new revenue standards require enterprises to adjust the amount of retained earnings and other relevant items in the financial statements at the beginning of the year of initial implementation (i.e. 1 January 2020) based on the cumulative effects due to initial implementation of the standards, and the information of the comparable period shall not be adjusted. When implementing the new revenue standards, the Company only adjusted the cumulative effects of contracts that had not been completed on the date of initial implementation. For details, please refer to 39 of Financial Report 5 in Section 12 of the Full Text of 2020 Annual Report of Xiamen PortDevelopment Co., Ltd.

The cumulative effects of the above accounting policies are as follows:

As a result of implementing the new revenue standards, the Company adjusted its consolidated financial statements as at 1 January 2020 with the contract liabilities increased by RMB280,229,327.82, other payables increased by RMB73,767,400.07, other current liabilities increased by RMB34,877,421.37, advances decreased by RMB388,874,149.26, receivables decreased by RMB873,111.99, and contract assets increased by RMB873,111.99.

The above-mentioned changes in accounting policies have no impact on the financial statements of the parent company of the Company

The above accounting policy changes have been approved at the 34th meeting of the 6th session of the board of directors held by the Company on 19 March 2020.

3.7.2 Explanation of retrospective restatement for adjustment of significant accounting errors occurred during the reporting period

□ Applicable √ Not applicable

There was no retrospective restatement for adjustment of significant accounting errors occurred in the Company during the reporting period.

3.7.3 Explanation of changes in the scope of the consolidated statements in comparison with the financial report of the previous year

√ Applicable

□ Not applicableSubsidiary newly-increased during the reporting period:

Reason for inclusion in the ion

Subsidiaries decreased during the reporting period:

Reasons for no inclusion e scope of consolidation

Transferred

Xinrunyan

2020

A wholly-owned subsidiary of XRBM, transferred together on 24

December 2020