Annual Report 2019

29 ANNUAL REPORT 2019 potential. Regarding the Djibouti comprehensive development project, the Group will continue to push forward the construction and development of the Djibouti International Free Trade Zone and the transformation projects of the old ports, etc. Regarding the Hambantota Port project, the Group will thoroughly carry out the work of inducting business and investment, at the same time deepen the promotion of relevant businesses, such as container, oil and gas, and maritime services, following the overall plan for future development. With regard to innovative development, the Group will uphold the technology-driven approach to enhance its competitiveness. Through the established “Research Institute of CMPort for Technological Innovation and Development”, the Group will be devoted to building CMPort’s port ecosystem for technological innovation which will output the technological and innovative solution of port operation, aiming to become the bridge between industry, education and research. The “CM Chip” platform will mainly develop three leading products for the industry, including CTOS (Container Terminal Operation System), BTOS (Bulk Cargo Terminal Operation System) and LPOS (Logistic Park Operation System), striving to realise intelligentised operation inside the terminals. Products under the CTOS series will cover intelligent application scenarios throughout the entire process ranging from smart loading and unloading at the quayside and in the yards to intelligent entrance gate. For the BTOS series, the Group will establish a research and development team to develop a new generation of cloud-based BTOS products. In respect of LPOS, the Group will develop the first generation of products. The “CM ePort” platform will innovate the service models through improvement of the informationisation service system of the port zones and the “Port+Internet” approach to develop competitive customer services of ports. In terms of capital operation, the Group will adopt creative work approach to revitalise the existing asset and optimise asset structure. For certain projects, the Group will introduce strategic investors to reduce the equity interest in the projects of relatively higher risks, and dispose of the assets with lower returns, in exchange of high-quality assets, which will optimise its assets portfolio, lower the debt level and interest expenses, and enhance the return on shareholders’ equity. Regarding operation management, the Group will establish an operational management and control system for sustainable value creation. The Group will carry on and enhance the “Project of Improving Quality and Efficiency”, improve the quality of initiatives and promote the integration of its initiatives for improving quality and efficiency with its strategic goals, daily work and actual business, which will help realise high-quality development. The Group will improve the global governance structure for operation at the headquarters and operation management and control system. An intelligent operation management platform will be developed to digitalise the operation process of and gather data from various business units to reconstruct the refined management system for ports and develop a supporting system for intelligent decision-making of the management members of the headquarters and terminals. With regard to marketing and commerce, the Group will continue to analyse customer values and optimise customer structure. The Group will strive to deliver efficient headquarters function in terms of marketing and commerce, exploring the potential of collaborated marketing and commerce among subsidiary terminals to realise synergistic business development. The Group will devote more resources to attract and cultivate high-end talents specialising in commerce to enhance its customer service capability. It will also deepen the cooperation with shipping companies and carry out commercial planning for ports by regions, and strengthen its cooperation with major cargo owners to expand its hinterland. Moreover, the Group will strengthen its customer relationship and improve its industry influence as a key priority. In 2020, despite the pressure on global economic and trade development, and the lingering risks such as trade frictions and political disputes, the development of emerging markets and the improving trading activities within the region will provide opportunities for port development. The new digitalisation technology will also open up new roads leading to a world-class port. The Group will proactively capture opportunities and tap potentials in reform and innovation. With the growing core competitiveness and profitability, the Group will as always endeavour to maximise shareholder value. At the same time of striving to deliver better returns for its shareholders, the Group will also create values for the Group’s various stakeholders.