Shandong Port Group recently released its annual performance report for 2020, with its revenue increasing by 6.36 percent year-on-year to 50.19 billion yuan ($7.75 billion) and operating profits up 13.63 percent to 6.46 billion yuan.

Cargo is loaded at Qingdao Port, a branch of Shandong Port Group. [Photo/IC]

The company's net profit reached 4.47 billion yuan last year, an increase of 18.1 percent year-on-year.

In addition, Shandong Port Group completed a total investment of 38.46 billion yuan in 2020, of which its fixed asset investment reached 21.69 billion yuan, accounting for 56.42 percent of its investment, while its equity investment was 16.76 billion yuan, accounting for 43.58 percent of its investment.

According to the company, the international environment has become increasingly complex as the COVID-19 pandemic has had a far-reaching impact and the global economy is in a stage of profound adjustment, with downward pressure on the international shipping market continuing to mount.

China has actively advanced supply-side structural reform, which will have a profound impact on the growth of port transport demand and the adjustment of its functional structure. The integration of the port industry has accelerated the formation of a world-class port group, while the competition among provincial port groups is becoming increasingly fierce, said company representatives.

Consolidated in August 2019, Shandong Port Group has integrated many of the province's major ports, including Qingdao Port, Yantai Port, Rizhao Port, and the Bohai Bay Port Group, in order to maximize port resources and eliminate regional competition.

The company will continue to strengthen efforts to build an international shipping hub in Northeast Asia led by Qingdao Port, ensure the stability of industrial and supply chains, as well as contribute to the development of the dual-circulation development pattern, said Shandong Port Group representatives.