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招港B:2019年第一季度报告全文(英文版)2019-04-30  

						China Merchants Port Group Co., Ltd.                           The Report for the First Quarter of 2019




           CHINA MERCHANTS PORT GROUP CO., LTD.

       THE REPORT FOR THE FIRST QUARTER OF 2019




                                  Date of Disclosure: 30 April 2019
China Merchants Port Group Co., Ltd.                            The Report for the First Quarter of 2019




                                       Part I Important Notes

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of China Merchants Port Group Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Bai Jingtao, the Company’s legal representative, Wen Ling, the Company’s Chief Financial
Officer, and Sun Ligan, the person-in-charge of the accounting organ hereby guarantee that
the Financial Statements carried in this Report are factual, accurate and complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.




                                                 1
China Merchants Port Group Co., Ltd.                                       The Report for the First Quarter of 2019



                                              Definitions
                  Term                                                 Definition

The “Company”, “CMPort” or “we”   China Merchants Port Group Co., Ltd.

Sinotrans Guangdong                     Sinotrans Guangdong Co., Ltd.

Zhanjiang Port                          Zhanjiang Port (Group) Co., Ltd.

Zhanjiang Infrastructure Investment     Zhanjiang Infrastructure Construction Investment Group Co., Ltd.

CMG                                     China Merchants Group Co., Limited

CWH (H.K.)                              Chiwan Wharf Holdings (Hong Kong) Limited

CMID                                    China Merchants Investment Development Company Limited

SZPL                                    Shenzhen Urban Planning and Land Resources Committee
                                        The Authority of Qianhai Shenzhen-Hongkong Modern Service
SZQH
                                        Industry Cooperation Zone of Shenzhen
Qianhai Investment Holdings             Shenzhen Qianhai Development Investment Holdings Co., Ltd.

CM Qianhai Industrial                   Shenzhen China Merchants Qianhai Industrial Development Co., Ltd.

CM Chidi                                Shenzhen China Merchants Qianhai Chidi Industrial Co., Ltd.
CMPort Holdings                         China Merchants Port Holdings Company Limited (00144.HK)
                                        Ansujie Terminal Services (Shenzhen) Co., Ltd., a wholly-owned
Ansujie
                                        subsidiary of CMPort Holdings
                                        Antongjie Terminal Services (Shenzhen) Co., Ltd., a wholly-owned
Antongjie
                                        subsidiary of CMPort Holdings
Qianhai Hongyu                          Shenzhen Qianhai Hongyu Industrial Investment Co., Ltd.
Shekou Asset Management                 Shenzhen China Merchants Shekou Asset Management Co., Ltd.
CMI                                     China Merchants Investment Limited
Lac Assal                               Lac Assal Investment Holding Company Limited
Cheer Signal                            Cheer Signal Investment Limited
Khor Ambado Fzco                        Khor Ambado Free Trade Zone Co., Ltd.
CMHD                                    China Merchants Holdings (Djibouti) Fze
The cninfo website                      www.cninfo.com.cn
                                        Expressed in the Chinese currency of Renminbi
RMB
                                        Expressed in tens of thousands of Renminbi
RMB’0,000
                                        Expressed in hundreds of millions of Renminbi
RMB’00,000,000
                                        (unless otherwise specified)




                                                      2
China Merchants Port Group Co., Ltd.                                                        The Report for the First Quarter of 2019




                                   Part II Key Corporate Information

I Key Accounting Data and Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reasons for the retrospective adjustments or restatements: 1. Changes to accounting policies. For details, please refer to “XII YoY
Changes to Accounting Policies, Estimates and Methods” under “Part III Significant Events” in this report; 2. A business
combination under common control. The Company completed the issuance of shares to the trading counterpart CMID on 25
December 2018 and took control of CMPort Holdings in form and in nature. In accordance with the Accounting Standards for
Business Enterprises No. 33-Consolidated Financial Statements, the Company starts to include CMPort Holdings into the
consolidated financial statements since December 2018. Therefore, the Company adjusted the comparative financial data in the table
below as required by the rules governing business combinations under common control.

                                                                                       Q1 2018                             Change (%)
                                                    Q1 2019
                                                                           Original                Restated                 Restated

 Operating revenue (RMB)                         2,702,894,522.99        615,757,667.14       2,172,750,441.44                   24.40%
 Net profit attributable to the listed
                                                   814,944,249.12        146,662,116.72          381,903,088.64                 113.39%
 company’s shareholders (RMB)
 Net profit attributable to the listed
 company’s shareholders before                    262,409,245.18        147,400,980.09          129,600,674.09                 102.48%
 exceptional items (RMB)
 Net cash generated from/used in
                                                 1,148,963,121.64        105,464,496.51          488,161,711.35                 135.37%
 operating activities (RMB)
 Basic earnings per share (RMB/share)                         0.454                0.227                   0.213                113.15%

 Diluted earnings per share (RMB/share)                       0.454                0.227                   0.213                113.15%

 Weighted average return on equity (%)                       2.62%                 2.91%                  1.33%                   1.29%

                                                                                 31 December 2018                          Change (%)
                                                 31 March 2019
                                                                           Original                Restated                 Restated

 Total assets (RMB)                            145,187,177,118.55        8,147,257,790.54     128,018,084,415.68                 13.41%
 Equity attributable to the listed
                                                31,440,401,822.20        4,313,532,059.53       30,760,475,412.93                 2.21%
 company’s shareholders (RMB)


Exceptional gains and losses:
√ Applicable □ Not applicable
                                                                                                                                Unit: RMB

                                  Item                                       Q1 2019                                Note
 Gain or loss on disposal of non-current assets (inclusive of
                                                                                779,531.18
 impairment allowance write-offs)
 Government subsidies charged to current profit or loss (exclusive
 of government subsidies given in the Company’s ordinary course
                                                                             21,086,769.01
 of business at fixed quotas or amounts as per the government’s
 uniform standards)


                                                                   3
China Merchants Port Group Co., Ltd.                                                        The Report for the First Quarter of 2019


 Capital occupation charges on non-financial enterprises that are
                                                                                 12,811,302.12
 recorded into current profit or loss
                                                                                                  The Company took control of
 Gains due to that the investment costs for the Company to obtain                                 Zhanjiang Port in the current period,
 subsidiaries, associates and joint ventures are lower than the                                   and return on investment was
                                                                               723,737,741.50
 enjoyable fair value of the identifiable net assets of the investees                             recognized and measured on the
 when making the investments                                                                      long-term equity investment in
                                                                                                  Zhanjiang Port formerly at fair value
 Gain or loss on fair-value changes in trading financial assets and
 liabilities, as well as derivative financial assets and liabilities &
                                                                                                  Gain or loss on fair-value changes in
 income from disposal of trading financial assets and liabilities,
                                                                               803,969,789.43     financial assets and liabilities at fair
 derivative financial assets and liabilities, as well as investments in
                                                                                                  value through profit or loss
 other debt obligations (exclusive of effective portion of hedges
 that arise in the Company’s ordinary course of business)
 Non-operating income and expense other than the above                            2,586,527.25

 Less: Income tax effects                                                      169,501,960.70

         Minority interests effects (after tax)                                842,934,695.85

 Total                                                                         552,535,003.94                        --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss
Items:
□ Applicable √ Not applicable


II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders

                                                                                                                                 Unit: share
                                                                            Number of preferred
Number of ordinary shareholders 34,074 (including 23,247 A-shareholders and shareholders with resumed
                                                                                                                                             0
at the period-end               10,827 B-shareholders)                      voting rights at the period-end
                                                                            (if any)
                                                           Top 10 shareholders
                                                                                                                               Shares in
                                                          Nature of        Shareholding                       Restricted
                 Name of shareholder                                                    Total shares held                      pledge or
                                                         shareholder        percentage                       shares held
                                                                                                                                frozen
China Merchants Investment Development                  Foreign legal
                                                                                 64.05%    1,148,648,648 1,148,648,648             0
Company Limited                                         person
China Merchants Gangtong Development                    Domestic
                                                                                 20.68%      370,878,000                   0       0
(Shenzhen) Co., Ltd.                                    legal person
                                                        Foreign legal
Broadford Global Limited                                                          3.08%       55,314,208                   0       0
                                                        person
CMBLSA RE FTIF TEMPLETON ASIAN GRW                      Foreign legal
                                                                                  2.16%       38,708,339                   0   Unknown
FD GTI 5496                                             person
                                                        Fund, wealth
                                                        management
National Social Security Fund 101 Portfolio                                       0.18%          3,304,101                 0   Unknown
                                                        instrument,
                                                        etc.
                                                        Foreign legal
NORGES BANK                                                                       0.16%          2,802,863                 0   Unknown
                                                        person


                                                                       4
China Merchants Port Group Co., Ltd.                                                    The Report for the First Quarter of 2019


                                                    State-owned
China Merchants Securities (HK) Co., Ltd.                                   0.14%          2,590,937                  0     Unknown
                                                    legal person
                                                    Domestic
Mai Shuqing                                                                 0.13%          2,350,247                  0     Unknown
                                                    natural person
                                                    Foreign legal
Vanguard Emerging Markets Stock Index Fund                                  0.10%          1,763,746                  0     Unknown
                                                    person
                                                    Foreign legal
Canada Post Corporation Registered Pension Plan                             0.07%          1,292,406                  0     Unknown
                                                    person
                                               Top 10 unrestricted shareholders

                                                                                                     Shares by type
                Name of shareholder                    Unrestricted shares held
                                                                                              Type                        Shares
China    Merchants       Gangtong     Development                                    RMB-denominated
                                                                       370,878,000                                         370,878,000
(Shenzhen) Co., Ltd.                                                                 ordinary stock
                                                                                     Domestically listed
Broadford Global Limited                                                55,314,208                                          55,314,208
                                                                                     foreign stock
CMBLSA RE FTIF TEMPLETON ASIAN GRW                                                   Domestically listed
                                                                        38,708,339                                          38,708,339
FD GTI 5496                                                                          foreign stock
                                                                                     RMB-denominated
National Social Security Fund 101 Portfolio                              3,304,101                                           3,304,101
                                                                                     ordinary stock
                                                                                     Domestically listed
Norges Bank                                                              2,802,863                                           2,802,863
                                                                                     foreign stock
                                                                                     Domestically listed
China Merchants Securities (HK) Co., Ltd.                                2,590,937                                           2,590,937
                                                                                     foreign stock
                                                                                     RMB-denominated
Mai Shuqing                                                              2,350,247                                           2,350,247
                                                                                     ordinary stock
                                                                                     Domestically listed
Vanguard Emerging Markets Stock Index Fund                               1,763,746                                           1,763,746
                                                                                     foreign stock
                                                                                     Domestically listed
Canada Post Corporation Registered Pension Plan                          1,292,406                                           1,292,406
                                                                                     foreign stock
                                                                                     RMB-denominated
Chen Zehong                                                              1,240,000                                           1,240,000
                                                                                     ordinary stock
                                               China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a
                                               wholly-owned subsidiary of Broadford Global Limited, and Broadford Global
Related or acting-in-concert parties among the
                                               Limited is the controlling shareholder of China Merchants Investment
shareholders above
                                               Development Company Limited. The Company does not know whether the
                                               other unrestricted shareholders are related parties or not.
Top 10 ordinary shareholders involved in securities
                                                    N/A
margin trading (if any)


Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
Company conducted any promissory repo during the Reporting Period.
□ Yea √ No


2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable




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China Merchants Port Group Co., Ltd.                                                    The Report for the First Quarter of 2019




                                             Part III Significant Events

I Changes in Major Accounting Data and Financial Indicators for the Reporting Period,As
Well As Reasons for Such Changes

√ Applicable □ Not applicable
                                                                                                                          Unit: RMB

           Item              31 March 2019           1 January 2019       Change (%)               Explanation of Change

                                                                                     The inclusion of Zhanjiang Port as a new
Notes receivable                   182,523,102.29         11,608,669.43     1472.30% entity into the consolidated financial
                                                                                     statements of the current period
                                                                                     The inclusion of Zhanjiang Port as a new
Accounts receivable               1,640,858,015.96     1,109,230,503.08       47.93% entity into the consolidated financial
                                                                                     statements of the current period
                                                                                     Increase in the prepayments by subsidiaries
Prepayments                        201,216,459.84         81,845,182.30      145.85% for machinery equipment, and the effect of the
                                                                                     accounting rules governing leases
                                                                                     The inclusion of Zhanjiang Port as a new
Inventories                        161,659,512.30        108,567,270.02       48.90% entity into the consolidated financial
                                                                                     statements of the current period
Other non-current                                                                      Changes in the fair value of investments in
                                  2,939,477,551.93     2,087,872,081.94       40.79%
financial assets                                                                       Qingdao Port and Ningbo Zhoushan Port
                                                                                       Right-of-use assets recognized as per the new
Right-of-use assets               6,505,658,114.64     6,549,564,031.55       -0.67%
                                                                                       accounting standards governing leases
                                                                                     The inclusion of Zhanjiang Port as a new
                                                                                     entity into the consolidated financial
                                                                                     statements of the current period, normal
Fixed assets                  26,540,880,013.69       17,477,797,429.30       51.85%
                                                                                     depreciation allowances, exchange rate
                                                                                     fluctuations and the effect of the new
                                                                                     accounting standards governing leases
                                                                                     The inclusion of Zhanjiang Port as a new
Deferred income tax
                                   120,520,020.83         66,708,157.19       80.67% entity into the consolidated financial
assets
                                                                                     statements of the current period
                                                                                     The inclusion of Zhanjiang Port as a new
Other non-current assets          2,119,736,766.29       395,191,485.98      436.38% entity into the consolidated financial
                                                                                     statements of the current period
                                                                                     The inclusion of Zhanjiang Port as a new
                                                                                     entity into the consolidated financial
Short-term borrowings             7,669,361,618.42     3,425,291,312.62      123.90% statements of the current period, and increase
                                                                                     in short-term bank loans for investment
                                                                                     purposes
                                                                                     The inclusion of Zhanjiang Port as a new
Long-term payables                2,027,482,133.04     1,252,860,200.23       61.83% entity into the consolidated financial
                                                                                     statements of the current period
                                                                                       Lease liabilities recognized according to the
Lease liabilities                  989,868,412.75      1,020,239,824.73       -2.98%
                                                                                       new accounting standards governing leases

           Item                    Q1 2019              Q1 2018           Change (%)               Explanation of Change

                                                                                     Increase in interest expense due to an increase
Financial expense                  431,930,403.64        275,761,221.02       56.63% in the average balance of interest-bearing
                                                                                     liabilities


                                                                  6
China Merchants Port Group Co., Ltd.                                           The Report for the First Quarter of 2019


                                                                             The Company took control of Zhanjiang Port
                                                                             in the current period, and return on investment
investment income           1,491,659,164.10    684,366,403.71       117.96% was recognized and measured on the
                                                                             long-term equity investment in Zhanjiang Port
                                                                             formerly at fair value
Gain on changes in fair      803,456,059.74     137,919,530.28       482.55% Increase in the net gain on changes in the fair
value                                                                        value of trading financial assets
                                                                             Increase in deferred income tax liabilities due
Income tax expense           428,680,888.19     196,407,949.26       118.26% to an increase in the gain on changes in the
                                                                             fair value of equity interests held

           Item              Q1 2019           Q1 2018            Change (%)              Explanation of Change

                                                                             The inclusion of Zhanjiang Port as a new
                                                                             entity into the consolidated financial
Cash received from sale
of commodities and          2,647,510,819.37   1,819,094,588.96       45.54% statements of the current period, and the
                                                                             inclusion of TCP as a new entity in the
rendering of services
                                                                             consolidation financial statements in February
                                                                             2018
Cash received from other     437,792,411.01     163,911,046.96       167.09% A government subsidy for the western channel
operating activities                                                         in the current year
                                                                             The inclusion of Zhanjiang Port as a new
                                                                             entity into the consolidated financial
Taxes paid                   225,198,426.64     126,141,464.22        78.53% statements of the current period, and the
                                                                             inclusion of TCP as a new entity in the
                                                                             consolidation financial statements in February
                                                                             2018
Net proceeds from the                                                        The security deposit received last year for the
disposal of subsidiaries                   -   1,411,633,655.68     -100.00% transfer of equity interests in China Merchants
and other business units                                                     Gangtong Development (Shenzhen) Co., Ltd.
                                                                               The balance of monetary capital of Zhanjiang
Cash received from other    1,315,937,327.03                  -                Port, which is included as a new entity into the
                                                                             -
investing activities                                                           consolidated financial statements of the
                                                                               current period
                                                                             The inclusion of Zhanjiang Port as a new
Cash paid for the
                                                                             entity into the consolidated financial
acquisition of fixed
assets, intangible assets    650,139,928.72     481,958,576.95        34.90% statements of the current period, and the
                                                                             inclusion of TCP as a new entity in the
and other long-term
                                                                             consolidation financial statements in February
assets
                                                                             2018
Cash paid for investing      415,845,100.00      63,458,839.54       555.30% The acquisition of a 3.4223% interest in
activities                                                                   Zhanjiang Port in the current period
Net payments for the
acquisition of                             -   4,844,558,474.75     -100.00% The acquisition of TCP last year
subsidiaries and other
business units
Cash paid for other          255,659,104.33      25,463,391.23       904.03% The purchase of structured deposits not repaid
investing activities                                                         on demand in the current period
                                                                             Equity funds received by Zhanjiang Port from
Cash received from           460,518,459.96      15,950,000.00      2787.26% its non-controlling shareholders in the current
capital contributions
                                                                             period
Increase in cash            5,720,896,211.18   9,562,436,640.00      -40.17% Decrease in borrowings obtained in the
borrowings obtained                                                          current period
Cash paid for interest                                                       Increase in interest expense due to an increase
expenses and distribution    575,131,285.06     231,250,932.71       148.70% in the average balance of interest-bearing
od dividends or profit                                                       liabilities
                                                                             The inclusion of Zhanjiang Port as a new
Cash paid in other           114,109,500.00      31,028,691.80       267.75% entity into the consolidated financial
financing activities
                                                                             statements of the current period



                                                         7
China Merchants Port Group Co., Ltd.                                                      The Report for the First Quarter of 2019


II Progress, Influence and Solutions with regard to Significant Events

√ Applicable □ Not applicable

                                                                                                               Index to the related
                            Summary of the significant event                               Disclosure date
                                                                                                                  announcement

The acquisition of assets and related-party transactions
On 2 January 2019, the Company and Sinotrans Guangdong signed the Share Transfer
Agreement of Zhanjiang Port (Group) Co., Ltd. in Shenzhen. By the signing of the                             Refer to
Agreement, the Company was granted 201,034,548 ordinary shares of Zhanjiang Port                             http://www.cninfo.com
held by Sinotrans Guangdong, which accounted for 5% of the total shares issued by                            .cn for details of
Zhanjiang Port on the date of signing the Agreement, with a consideration valued at                          relevant
RMB375,334,390. On 2 January 2019, the Proposal on the Signing of Share Transfer 3 January 2019 announcements on
Agreement of Zhanjiang Port (Group) Co., Ltd. between the Company and Sinotrans 5 January 2019 resolutions
Guangdong was deliberated and approved by the 1st Extraordinary Meeting of the 9th                           (announcement No.
Board of Directors of the Company in 2019.                                                                   2019-002 and
As of 4 January 2019, the share purchase has completed the registration changing                             announcement No.
procedures and changing filing procedures for foreign-invested enterprises. And the 5%                       2019-003)
of shares of Zhanjiang Port held by Sinotrans Guangdong has registered under the
Company.

Foreign investment of wholly-owned subsidiaries and related-party transactions
On 8 January 2019, the wholly-owned subsidiary of the Company CWH (H.K.) signed
the Agreement on Capital Increase of Zhanjiang Port (Group) Co., Ltd. with Zhanjiang
Infrastructure Investment and Zhanjiang Port (hereinafter referred to as the “Capital
Increase Agreement”). According to the provisions of the Capital Increase Agreement,
Zhanjiang Port intends to issue 1,853,518,190 additional common shares at the price of
RMB1.867 per share or equivalent foreign currency to increase its registered capital to                      Refer to
RMB5,874,209,145. CWH (H.K.) proposed to subscribe for 1,606,855,919 common                                  http://www.cninfo.com
shares, accounting for 27.3544% of the shares issued by Zhanjiang Port on the date of                        .cn for details of
issuance of the subscribed shares, with a total amount up to RMB3,000,000,000.77 or                          relevant
equivalent foreign currency (hereinafter referred to as "the transaction"); Zhanjiang                        announcements on
                                                                                           9 January 2019
Infrastructure Investment proposed to subscribe 246,662,271 common shares,                                   resolutions
                                                                                           25 January 2019
accounting for 4.1991% of the shares issued by Zhanjiang Port on the date of issuance                        (announcement No.
                                                                                          12 February 2019
of the subscribed shares, with a total amount up to RMB460,518,459.96.                                       2019-005,
The Proposal on Capital Increase of Wholly-owned Subsidiary to Zhanjiang Port                                announcement No.
(Group) Co., Ltd. was deliberated and approved by the 2nd Extraordinary Meeting of                           2019-013 and
the 9th Board of Directors held by the Company on 8 January 2019 and the 1st                                 announcement No.
Extraordinary General Meeting of 2019 held on 24 January 2019 respectively.                                  2019-018)

On 2 February 2019, CWH (H.K.) received the Decision on the Non-implementation of
Further Investigation on Anti-Monopoly Review on Enterprise Centralization (Decision
No. [2019]56) issued by the State Administration of Market Regulation. The State
Administration of Market Regulation, after investigation, decided not to carry out
further investigation on this transaction, and CWH (H.K.) might implement
concentration of undertakings from the date of issuance of the decision. As of 3


                                                                8
China Merchants Port Group Co., Ltd.                                                       The Report for the First Quarter of 2019


February 2019, the registration and filing procedures of the transaction for business
change was finished, and the capital increase to Zhanjiang Port by the Company's
wholly-owned subsidiary CWH (H.K.) was completed.

Land integration and reorganization in Qianhai by wholly-owned subsidiary of
majority-owned subsidiary and related-party transactions
In order to implement the Comprehensive Planning for Qianhai Shenzhen Hongkong
Modern Service Industry Cooperation Zone of Shenzhen and the Comprehensive
Planning for Shekou District in Qianhai and the surrounding Nanshan District in China
(Guangdong) Pilot Free Trade Zone, which are made by the State Council and Shenzhen
Municipal Government, to promote the development of Qianhai-Shenzhen-Hong Kong
Cooperation Zone and Qianhai Shekou Free Trade Zone, the Company signed the
Agreement on Land Integration and Reorganization with SZPL, SZQH and CMG, and
CMG, Qianhai Investment Holdings, and CM Qianhai Industrial and other relevant
parties signed the Joint Venture Cooperation Agreement, to clarify the implementation
plans for land integration and reorganization and the joint venture cooperation in
Qianhai.
To realize the implementation plans of land integration and reorganization and the joint
venture cooperation in Qianhai, SZQH recovered all the land use rights under the
original plan of 19 land-holding companies within the scope and in accordance with the
                                                                                                            Refer to
Agreement on Land Integration and Reorganization, and                evaluated the land
                                                                                                            http://www.cninfo.com
compensation amount of about RMB43.21 billion by calculation (the base date of
                                                                                                            .cn for details of
evaluation is 1 January 2015); and then SZQH replaced the land-use rights under the
                                                                                                            relevant
new plan whose value equals the compensation value of the land mentioned above with
                                                                                            12 January 2019 announcements on
CM Chidi (with 14% of shares held by Ansujie and Antongjie) (the base date of
                                                                                           26 February 2019 resolutions
evaluation is 1 January 2015, hereinafter referred to as the “land for replacement with
                                                                                                            (announcement No.
China Merchants”); SZQH invested part of the land invested by Qianhai into Qianhai
                                                                                                            2019-008 and
Investment Holdings to become one of its shareholders, and then the land use right were
                                                                                                            announcement No.
invested into Qianhai Hongyu by Qianhai Investment Holdings, who became a
                                                                                                            2019-020)
shareholder of Qianhai Hongyu; CM Qianhai Industrial and Qianhai Investment
Holdings increased the capital of the joint venture company with the 100% equity of
CM Chidi and Qianhai Hongyu respectively, and the party with insufficient equity made
up for the cash consideration to ensure that CM Qianhai Industrial and Qianhai
Investment Holdings holds 50% equity of the joint venture company respectively after
the capital increase.
In order to harmonize the economic interest relationships between CM Chidi and the 19
land-holding companies due to the acquisition of land for investment replacement, CM
Chidi signed the Agreement on Confirmation of Compensation for Creditor’s Rights
with the 19 land-holding companies to determine the amount and proportion of land
compensation for creditor’s rights of the 19 land-holding companies. Ansujie and
Antongjie will receive about RMB5.693 billion from CM Chidi as compensation for the
land use rights of about 471,800 square meters, accounting for 13.1758% of the total
amount of land compensation for creditor’s rights. In order to keep the proportion of
land compensation for creditor's rights in line with the proportion of 14% equity held
indirectly by CMPort Holdings, Antongjie, Shekou Asset Management and CM Chidi

                                                                 9
China Merchants Port Group Co., Ltd.                                                         The Report for the First Quarter of 2019


signed the Agreement on Transfer of Creditor’s Rights, to stipulate that Antongjie will
purchase 0.8242% of land compensation for creditor’s rights from Shekou Asset
Management, with an amount of creditor's rights up to about RMB356 million. In
addition, 55% of the total area of T102-0166 and T102-0167 plots owned by Ansujie
and Antongjie and the corresponding shorelines (about 5313,000 square meters of land
area) are replaced to Phase II of Dachanwan Port Area according to the principle of
equal area (including corresponding shorelines). Ansujie and Antongjie no longer enjoy
the compensation of land value under the new and original planning conditions for the
above-mentioned land area. The specific replacement scheme shall be determined by
SZPL, CMG, Antongjie and Ansujie after further consultation with relevant
departments.
In order to pay off the above-mentioned land compensation debts, CM Qianhai
Industrial signed the Agreement on Capital Increase to CM Qianhai Industrial with 19
land-holding companies, to stipulate that the former 19 land-holding companies will
increase their investment to CM Qianhai Industrial by about RMB43.210 billion in
cash, of which about RMB6.049 billion would be raised by Ansujie and Antongjie. With
these increased capital funds, CM Qianhai Industrial will increase its investment in cash
to its wholly-owned subsidiary CM Chidi, who will pay off the land compensation debts
to the 19 land-holding companies with such increased capital funds. In addition, in
order to raise funds for cooperative cash consideration, the 19 land-holding companies
will increase their investment to CM Qianhai Industrial by no more than RMB15 billion
with the same proportion of cash, of which, the incremental funds of Ansujie and
Antongjie will not exceed RMB2.1 billion. CM Qianhai Industrial will increase
investment to its wholly-owned subsidiary CM Chidi with such increased capital funds
to pay for the cash consideration for the joint venture (including but not limited to
advance payment and sincerity deposit, etc.), or pay the joint venture cash consideration
directly to the joint venture company (including but not limited to advance payment and
sincerity deposit, etc.). The cash consideration for the joint venture shall be determined
by the evaluation agency entrusted by CM Qianhai Industrial and Qianhai Investment
Holdings, who will evaluate the 100% equity of CM Chidi and Qianhai Hongyu in
accordance with the Joint Venture Cooperation Agreement. As the specific amount has
not been determined yet, investors should notice to the investment risk.
The Proposal on Land Integration and Reorganization in Qianhai by Wholly-owned
Subsidiary of Majority-owned Subsidiary was deliberated and approved by the 3rd
Extraordinary Meeting of the 9th Board of Directors held by the Company on 11 January
2019 and the 2nd Extraordinary General Meeting of 2019 held on 25 February 2019
respectively.

Related-party transactions of Majority-owned subsidiaries                                                     Refer to
On 22 January 2019, the Company's majority-owned subsidiaries, CMPort Holdings,                               http://www.cninfo.com
CMI, Cheer Signal Investment Limited and Lac Assal signed the Supplementary                                   .cn for details of
Agreement II on Shareholder Agreement of Lac Assal (hereinafter referred to as the 23 January 2019 relevant announcement
“Capital Increase Agreement”) to stipulate that the ports of CMPort Holdings, CMI and                       on resolutions
Cheer Signal Investment Limited shall increase the capital of Lac Assal by means of                           (announcement No.
cash contribution according to the proportion of their shareholder’s equity. The total                       2019-012)


                                                                  10
China Merchants Port Group Co., Ltd.                                                         The Report for the First Quarter of 2019


amount of capital to increase is USD30,000,000, including USD12,000,000 to be
increased by CMPort Holdings, USD12,000,000 to be increased by CMI and
USD6,000,000 to be increased by Cheer Signal Investment Limited (hereinafter referred
to as the “capital increase”). After the capital increase, the registered capital of Lac
Assal will increase to USD60,060,000. The proportion of shares of CMPort Holdings,
CMI and Cheer Signal Investment Limited will remained unchanged as 40%, 40% and
20% respectively.
The Proposal on Joint Capital Increase of Majority-owned Subsidiaries and Related
Parties to Lake Asaler was deliberated and approved by the 4th Extraordinary Meeting
of the 9th Board of Directors held by the Company on 22 January 2019.

Related-party guarantee provided by majority-owned subsidiary for its shareholding
subsidiary
Khor Ambado Fzco, a shareholding subsidiary of the Company’s majority-owned
subsidiary CMPort Holdings, is planning to apply for a loan of USD240 million from                             Refer to
the National Development Bank for the construction project in Djibouti Free Trade                              http://www.cninfo.com
Zone with a term of 13 years. CMPort Holdings intends to provide joint and several                             .cn for details of
liability guarantee for the loan according to the proportion of its shareholding in KHOR                       relevant
AMBADO FZCO. The guaranteed amount includes the principal of the loan (USD240 30 March 2019 announcements on
million*12%=USD228.8 million) and the corresponding interest, expenses (if any),               16 April 2019   resolutions
penalty (if any) and so on. The term of guarantee shall be from the effective date of the                      (announcement No.
guaranty contract to the expiration date of the performance period of the debt under the                       2019-028 and
main contract.                                                                                                 announcement No.
The Proposal on Related-party Guarantee Provided by Majority-owned Subsidiary for                              2019-038)
Its Shareholding Subsidiary was deliberated and approved by the 5th Meeting of the 9th
Board of Directors held by the Company on 28 March 2019 and the 3rd Extraordinary
General Meeting of 2019 held on 15 April 2019 respectively.

The Signature of land lease agreement by wholly-owned subsidiary of majority-owned
subsidiary and related-party transactions
CMHD, a wholly-owned subsidiary of the Company’s majority-owned subsidiary
CMPort Holdings, and Khor Ambado Fzco, a shareholding subsidiary of CMPort
                                                                                                               Refer to
Holdings, signed the Land Lease Agreement (hereinafter referred to as the “Land
                                                                                                               http://www.cninfo.com
Leasing Agreement”) on 28 March 2019 to stipulate that CMHD shall lease the land in
                                                                                                               .cn for details of
B06/B07 plot owned by Khor Ambado Fzco in Djibouti Free Trade Zone, which covers
                                                                                              30 March 2019 relevant announcement
an area of 137,801.63 square meters, with a total rent of USD27,756,004.31 for a lease
                                                                                                               on resolutions
period from the date of entry into force of the Land Lease Agreement to 14 August
                                                                                                               (announcement No.
2116.
                                                                                                               2019-029)
The Proposal on the Signature of Land Lease Agreement by Wholly-owned Subsidiary
of Majority-owned Subsidiary and Related-party Transactions was deliberated and
approved by the 5th Meeting of the 9th Board of Directors held by the Company on 28
March 2019.

Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:

                                                                  11
           China Merchants Port Group Co., Ltd.                                                                    The Report for the First Quarter of 2019


           □ Applicable √ Not applicable


           III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
           Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
           Reporting Period

           □ Applicable √ Not applicable


           IV Operating Performance Forecast for January-June 2019

           Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of January-June 2019, as well as
           explanation of why:
           □ Applicable √ Not applicable


           V Securities Investments

           √ Applicable □ Not applicable
                                                                                                                                                                  Unit: RMB
                                                                                                                                Sol        Gain
                                                                                                    Cumulati       Purch
                                                                                                                                d in       /loss
                                                   Accoun                       Gain/loss on         ve fair        ased                                                            Capi
Variety      Code      Nam                                                                                                      the          in
                                                    ting                         fair value           value        in the                                                 Accou      tal
   of          of       e of         Initial                  Beginning                                                         Rep         the        Ending carrying
                                                   measur                      changes in the       changes        Repor                                                  nting     reso
securiti    securiti   secur    investment cost             carrying value                                                      orti       Repo             value
                                                   ement                         Reporting          recorded        ting                                                   item     urce
  es          es        ities                                                                                                    ng        rting
                                                   model                           Period              into        Perio                                                              s
                                                                                                                                Peri       Perio
                                                                                                     equity           d
                                                                                                                                 od          d
                                                                                                                                                                          Trading
                       Ning                        Fair                                                                                                                             Self-
                                                                                                                                                                          financi
Stock       601018      bo       592,183,095.14    value    1,361,414,474.58   441,455,106.93                  0            0          0           0   1,773,099,689.84             own
                                                                                                                                                                          al
                       Port                        method                                                                                                                           ed
                                                                                                                                                                          assets
                                                                                                                                                                          Trading
                       Qing                        Fair                                                                                                                             Self-
                                                                                                                                                                          financi
Stock       06198      dao       124,405,138.80    value     190,401,046.01       8,511,687.22                 0            0          0           0    194,891,593.44              own
                                                                                                                                                                          al
                       Port                        method                                                                                                                           ed
                                                                                                                                                                          assets
                                                                                                                                                                          Trading
                       Qing                        Fair                                                                                                                             Self-
                                                                                                                                                                          financi
Stock       601298     dao       331,404,250.30    value     413,280,000.00    437,920,000.00                  0            0          0           0    851,200,000.00              own
                                                                                                                                                                          al
                       Port                        method                                                                                                                           ed
                                                                                                                                                                          assets
                                                                                                                                                                        Other
                       Jiang                                                                                                                                            invest
                         su                        Fair                                                                                                                 ments       Self-
Stock       600377     Expr         1,120,000.00   value        9,800,000.00                    0   75,000.00               0          0           0       9,900,000.00 in          own
                       essw                        method                                                                                                               equity      ed
                         ay                                                                                                                                             instrum
                                                                                                                                                                        ents
                                                                                                                                                                        Other
                                                                                                                                                                        invest
                       Petro
                                                   Fair                                                                                                                 ments       Self-
                        che
Stock       400032                  3,500,000.00   value         382,200.00                     0              0            0          0           0         382,200.00 in          own
                       mica
                                                   method                                                                                                               equity      ed
                       l A1
                                                                                                                                                                        instrum
                                                                                                                                                                        ents
                                                                                                                                                                        Other
                                                                                                                                                                        invest
                       Guan                        Fair                                                                                                                 ments       Self-
Stock       400009     g Jian         27,500.00    value          17,000.00                     0              0            0          0           0          17,000.00 in          own
                       1                           method                                                                                                               equity      ed
                                                                                                                                                                        instrum
                                                                                                                                                                        ents

Total                           1,052,639,984.24     --     1,975,294,720.59   887,886,794.15       75,000.00               0          0           0   2,829,490,483.28     --       --



                                                                                  12
            China Merchants Port Group Co., Ltd.                                                      The Report for the First Quarter of 2019


            VI Investments in Derivative Financial Instruments

            √ Applicable □ Not applicable
                                                                                                                                Unit: RMB’0,000
                                                                                                                               Proportion
                                                                                                                               of ending
                                                                                                                                           Actual
                                                                                    Purchase               Impairm Ending investment
            Relationsh Related                Initial                    Beginning             Sold in the                                gain/loss
                                 Type of                Starting Ending              d in the                  ent    investme amount in
 Operator ip with the transact             investment                    investmen             Reporting                                   in the
                                derivative                date     date             Reporting              provision     nt       the
             Company     ion                 amount                       t amount               Period                                   Reporting
                                                                                     Period                 (if any) amount Company’s
                                                                                                                                           Period
                                                                                                                               ending net
                                                                                                                                 assets
                               Forward
                                                                28
Financing Non-relate           foreign                  9 March
                       No                     4,961.18          February 4,961.18            0 4,961.18             0        0     0.00%    -332.39
institution d party            exchange                 2018
                                                                2019
                               purchasing
                                                        29
Financing Non-relate           Currency                         26 March
                       No                    20,177.33 March              20,177.33          0 20,177.33            0        0     0.00% -1,496.24
institution d party            swap                             2019
                                                        2018
                               Forward
Financing Non-relate           foreign                  4 April 26 March
                       No                       173.63                       173.63          0     173.63           0        0     0.00%
institution d party            exchange                 2018    2019
                               purchasing
                               Forward
Financing Non-relate           foreign                  15 June 21 March
                       No                         42.88                       42.88          0      42.88           0        0     0.00%
institution d party            exchange                 2018    2019
                               purchasing
                               Forward
Financing Non-relate           foreign                  15 June 8 May
                       No                     4,885.98                     4,885.98          0                      0 4,885.98     0.06%    -102.24
institution d party            exchange                 2018    2019
                               purchasing

Total                                              30,241.00    --        --     30,241.00          0 25,355.02             4,885.98      0.06%    -1,930.87

Source of money used for investment              All from the Company’s own funds

Legal matters involved (if applicable)           N/A

Analysis of risks and control measures           In order to reduce the risks resulted from changes in exchange rate of foreign currency loans, the Company
associated with derivative investments held      locked the principal and interests exchange rate of US$46.65 million foreign currency loans. Within the time
in Reporting Period (including but not           limit and scope of foreign currency loans, risks of changes in exchange rate can be reduced by locking the
limited to market risk, liquidity risk, credit   forward exchange rate.
risk, operational risk, legal risk, etc.)
Changes in market prices or fair value of
derivative investments in Reporting Period
(fair value analysis should include              Gain and loss on forward financial contracts was RMB-19.3087 million in the Reporting Period.
measurement method and related
assumptions and parameters)
Significant changes in accounting policies
and specific accounting principles adopted
                                                 N/A
for derivative investments in Reporting
Period compared to last reporting period
Opinion of independent directors on
                                                 N/A
derivative investments and risk control

                                                                               13
China Merchants Port Group Co., Ltd.                                                      The Report for the First Quarter of 2019


VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period

√ Applicable □ Not applicable

                                                                 Type of
       Date               Way of communication                                         Index to main information communicated
                                                          communication party
                                                                                Main inquiry: basic business condition, investments and
                      By phone and written inquiry                              financial condition of the Company;
                                                                                Materials provided: brochure of the Company;
January-March 2019 (through the EasyIR platform of Individual
                                                                                Index: SZSE EasyIR
                      SZSE)
                                                                                (http://irm.cninfo.com.cn/ssessgs/S001872/index.html)


VIII Irregularities in the Provision of Guarantees


□ Applicable √ Not applicable


IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes


□ Applicable √ Not applicable


X Progress Made on Internal Control

In the first quarter of 2019, according to the results of the work flow combing of internal control for 2018, the sample test of drafts,
internal control defect sheet and the rectification report on internal control, the Company produced the 2018 annual internal control
self-evaluation report, which was disclosed after review and approval at the 5th Meeting of the 9th Board of Directors and the 5th
Meeting of the 9th Supervisory Committee.

The Company engaged Deloitte Touche Tohmatsu Certified Public Accountants LLP to audit the effectiveness of its 2018 financial
reporting internal control. A standard auditor’s report with unqualified opinion was issued by DDT and later disclosed by the
Company.

Currently, the Company has conducted its internal control activities in 2019, including 1) renewed the list of the internal control task
group members; 2) formulated the work plan and schedule for internal control in 2019; 3) determined the working range of the
internal control (China Merchants Port Group Co., Ltd. and its 24 subordinate companies have been brought into the scope of
evaluation of internal control system) and self-assessment procedures of internal control in 2019; 4) conducted self-assessment of
internal control; 5) finished the updating of basic data of risk control.

The Company has completed the internal control work in 2018 according to the schedule in the internal control work plan for 2018,
as well as the preparations for its internal control activities in 2019 according to the schedule in the internal control work plan for
2019, with no deviation or delay.


XI Deposits in and Loans Provided by a Finance Company

The Proposal on Signing Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. was reviewed and approved on the
Second Meeting of the 9th Board of Directors held by the Company on 23 August 2017, in which, the Company was agreed to signed


                                                                     14
China Merchants Port Group Co., Ltd.                                                       The Report for the First Quarter of 2019


the Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. (renamed China Merchants Group Finance Co., Ltd. from
August 2017) with the period of three years.
The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement to Financial Service Agreement with
China Merchants Group Finance Co., Ltd and the Related-party Transactions was reviewed and approved on the 5th Meeting of the
9th Board of Directors held by the Company on 28 March 2019, in which, the Company was agreed to signed Supplementary
Agreement to Financial Service Agreement with China Merchants Group Finance Co., Ltd. At the end of the Reporting Period,
deposits in and loans provided by China Merchants Group Finance Co., Ltd. were as follows:

                                                                                                                      Unit: RMB’0,000

                             Item                             Beginning balance        Increase        Decrease        Ending balance

I. Deposits in China Merchants Group Finance Co., Ltd.                      3,838.72       6,072.36        6,782.81           3,128.28
II. Loans provided by China Merchants Group Finance Co
                                                                           77,500.00      31,500.00        5,500.00         103,500.00
Ltd.


XII Explain Change of the Accounting Policy, Accounting Estimate and Measurement
Methods as Compared with the Financial Reporting of Last Year

The Accounting Standards for Business Enterprises No. 21 – Lease (hereinafter referred to as “New lease standard”) revised and
issued by Ministry of Finance on 7 December 2018 required that enterprises listed both domestically and overseas and enterprises
listed overseas who prepare the financial statements by International Financial Reporting Standards or Accounting Standards for
Business Enterprises shall implement it form 1 January 2019, and other enterprises implementing the Accounting Standards for
Business Enterprises shall implement it from 1 January 2021. According to the requirements of Ministry of Finance, enterprises
whose subsidiaries are listed overseas and prepare the financial statements by International Financial Reporting Standards or
Accounting Standards for Business Enterprises can implement the new lease standard in advance. The Company, in accordance with
the requirements of Ministry of Finance, implemented the new lease standard from 1 January 2019. For details, see Announcement
on Changes in Accounting Policies (Announcement No.: 2019-031) published by the Company on http://www.cninfo.com.cn dated
30 March 2019.
According to the regulations of the new standards, the Company did not adjust the information during comparative period, executed
the accumulative influence number of the standard for the first time, and adjusted the beginning retained earnings and the amount of
other related items in financial statements. The Group has disclosed the balance sheet with new standards being implemented for the
first day of 1 January 2019 in financial statements of this Report.




                                                                      15
China Merchants Port Group Co., Ltd.                                          The Report for the First Quarter of 2019




                                          Part IV Financial Statements

I Financial Statements
1. Consolidated Balance Sheet
                                                                                                           Unit: RMB

                            Item                            31 March 2019                  31 December 2018
 Current assets:
   Cash and bank balances                                         7,102,589,101.27                  7,070,308,704.75
   Trading financial assets                                           1,903,946.25                                 -
   Notes and accounts receivable                                  1,823,381,118.25                  1,120,839,172.51
      Including: Notes receivable                                   182,523,102.29                     11,608,669.43
                   Accounts receivable                            1,640,858,015.96                  1,109,230,503.08
   Prepayments                                                      201,216,459.84                   124,404,862.87
   Other receivables                                                964,603,462.54                   799,559,226.45
      Including: Interest receivable                                 48,103,769.74                     33,041,147.73
                   Dividends receivable                             256,425,082.10                   259,804,145.16
   Inventories                                                      161,659,512.30                   108,567,270.02
   Assets classified as held for sale                               115,356,162.94                   115,356,162.94
   Other current assets                                           1,259,804,522.04                  1,195,421,189.12
 Total current assets                                            11,630,514,285.43                 10,534,456,588.66
 Non-current assets:
   Long-term receivables                                            783,360,606.40                   793,046,240.11
   Long-term equity investments                                  48,700,421,740.20                 50,176,577,263.40
   Investments in other equity instruments                          261,319,162.27                   247,848,314.30
   Other non-current financial assets                             2,939,477,551.93                  2,087,872,081.94
   Investment property                                            5,907,911,884.65                  5,890,146,989.51
   Fixed assets                                                  26,540,880,013.69                 22,994,190,880.43
   Construction in progress                                       6,844,559,662.45                  5,499,426,090.06
   Engineering material                                              13,911,742.66                                 -
   Right-of-use assets                                            6,505,658,114.64                                 -
   Intangible assets                                             23,888,348,682.74                 20,761,018,044.54
   R&D expense                                                       14,968,306.82                                 -
   Goodwill                                                       8,681,769,583.92                  8,335,895,842.35
   Long-term prepaid expense                                        233,818,993.63                   235,706,437.21
   Deferred income tax assets                                       120,520,020.83                     66,708,157.19
   Other non-current assets                                       2,119,736,766.29                   395,191,485.98
 Total non-current assets                                       133,556,662,833.12                117,483,627,827.02
 Total assets                                                   145,187,177,118.55               128,018,084,415.68


                                                       16
China Merchants Port Group Co., Ltd.                                                  The Report for the First Quarter of 2019


                              Item                                  31 March 2019                  31 December 2018
 Current liabilities:
    Short-term borrowings                                                 7,669,361,618.42                  3,425,291,312.62
    Notes and accounts payable                                              639,804,961.10                   429,120,690.97
    Receipts in advance                                                      47,368,404.19                    29,170,709.86
    Accrued payroll                                                         370,791,975.36                   433,489,555.40
    Taxes payable                                                           374,233,431.53                   345,183,422.42
    Other payables                                                        2,705,463,803.57                  2,245,670,528.89
      Including: Interest payable                                           498,029,824.08                   555,545,627.60
                     Dividends payable                                       66,052,207.09                    66,052,207.09
    Contractual liabilities                                                  71,046,766.16                    49,993,895.50
  non-current liabilities due within one year                             3,213,270,461.80                  2,349,849,449.96
    Other current liabilities                                               686,341,705.75                   602,659,721.80
 Total current liabilities                                               15,777,683,127.88                  9,910,429,287.42
 Non-current liabilities:
    Long-term borrowings                                                  8,422,809,110.33                  6,971,479,842.18
    Bonds payable                                                        21,643,668,439.19                 22,097,467,096.40
    Lease liabilities                                                       989,868,412.75                                 -
    Long-term payables                                                    2,027,482,133.04                  1,294,190,118.18
    Long-term payroll payable                                               374,926,420.15                   375,325,127.65
    Provisions                                                               34,769,055.75                    34,951,392.27
    Deferred income                                                       1,034,504,773.94                   228,658,214.64
    Deferred income tax liabilities                                       3,780,247,583.66                  2,911,074,941.27
    Other non-current liabilities                                         3,815,123,370.42                  3,777,582,522.86
 Total non-current liabilities                                           42,123,399,299.23                 37,690,729,255.45
 Total liabilities                                                       57,901,082,427.11                 47,601,158,542.87
 Shareholders’equity:
    Share capital                                                         1,793,412,378.00                  1,793,412,378.00
    Capital reserves                                                     19,471,423,274.62                 19,426,912,957.05
    Other comprehensive income                                              -58,102,973.53                    88,925,978.57
    Special reserves                                                         13,590,332.54                      8,231,080.43
    Surplus reserves                                                        527,175,908.67                   527,175,908.67
    Retained earnings                                                     9,692,902,901.90                  8,915,817,110.21
 Total equity attributable           to   parent   company
                                                                         31,440,401,822.20                 30,760,475,412.93
 shareholders’
 Minority interests                                                      55,845,692,869.24                 49,656,450,459.88
 Total shareholders’ equity                                             87,286,094,691.44                 80,416,925,872.81
 Total liabilities and shareholders’ equity                            145,187,177,118.55               128,018,084,415.68

The financial statements from Page 19 to Page 30 have been signed by:
Legal representative: Bai Jingtao
Chief Financial Officer: Wen Ling
Person-in-charge of the accounting organ: Sun Ligan




                                                               17
China Merchants Port Group Co., Ltd.                                     The Report for the First Quarter of 2019



2. Parent Company Balance Sheet
                                                                                                      Unit: RMB

                             Item                    31 March 2019                    31 December 2018

 Current assets:
   Cash and bank balances                                    142,886,668.11                     389,841,854.93
   Notes and accounts receivable                              11,179,233.40                      23,444,175.65

                   Accounts receivable                        11,179,233.40                      23,444,175.65

   Other receivables                                         609,568,742.31                     651,050,233.08

      Including: Interest receivable                                 4,438.52                        34,899.02

                   Dividends receivable                      329,153,465.74                     329,153,465.70

   Inventories                                                  137,993.08                          165,553.46
   Other current assets                                         -178,648.79                        1,563,111.61
 Total current assets                                        763,593,988.11                    1,066,064,928.73
 Non-current assets:
   Long-term receivables                                      11,004,284.75                       11,004,284.75
   Long-term equity investments                           28,513,487,952.33                   28,544,261,576.96

   Investments in other equity instruments                   527,181,090.00                     151,746,700.00

   Investment property                                        13,805,209.81                      12,685,959.06
   Fixed assets                                              185,001,423.89                     190,804,655.63
   Construction in progress                                    2,986,692.93                        2,500,843.87

   Right-of-use assets                                        10,445,577.65                                   -

   Intangible assets                                          57,082,209.88                      57,755,603.44
   Long-term prepaid expense                                   3,746,365.90                        3,785,801.32
 Total non-current assets                                 29,324,740,807.14                   28,974,545,425.03
 Total assets                                             30,088,334,795.25                   30,040,610,353.76
 Current liabilities:
   Short-term borrowings                                     604,404,000.00                     377,716,000.00
   Notes and accounts payable                                 10,059,547.81                      13,125,624.29

   Contractual liabilities                                        59,603.00                          92,003.00

   Accrued payroll                                            12,524,410.54                      26,605,190.52
   Taxes payable                                               1,797,946.21                      18,826,587.50
   Other payables                                            765,968,033.25                     717,536,924.18

      Including: Interest payable                             14,501,258.56                       15,011,119.82

                   Dividends payable                          37,608,540.65                      37,608,540.65

   Current portion of non-current liabilities                305,423,684.85                     299,531,506.81
   Other current liabilities                                                -                   200,000,000.00
 Total current liabilities                                 1,700,237,225.66                    1,653,433,836.30



                                                18
China Merchants Port Group Co., Ltd.                                  The Report for the First Quarter of 2019


                            Item                    31 March 2019                  31 December 2018

 Non-current liabilities:

   Lease liabilities                                          5,167,625.19                                 -

   Long-term payables                                       150,974,000.00                   151,710,000.00
   Deferred income tax liabilities                           34,204,375.00                    34,179,375.00
 Total non-current liabilities                              190,346,000.19                   185,889,375.00
 Total liabilities                                        1,890,583,225.85                  1,839,323,211.30
 Shareholders’ equity:
   Share capital                                          1,793,412,378.00                  1,793,412,378.00
   Capital reserves                                      25,517,679,153.52                 25,517,647,180.04
   Other comprehensive income                               102,713,125.00                   102,638,125.00
   Special reserves                                            219,439.38                        470,465.59
   Surplus reserves                                         527,175,908.67                   527,175,908.67
   Retained earnings                                        256,551,564.83                   259,943,085.16
 Total shareholders’ equity                             28,197,751,569.40                 28,201,287,142.46
 Total liabilities and shareholders’ equity             30,088,334,795.25                 30,040,610,353.76




                                               19
China Merchants Port Group Co., Ltd.                                             The Report for the First Quarter of 2019

3. Consolidated Income Statement
                                                                                                             Unit: RMB
                                            Item                                 Q1 2019                Q1 2018
 1. Revenue                                                                     2,702,894,522.99       2,172,750,441.44
   Including: Operating revenue                                                 2,702,894,522.99       2,172,750,441.44
 2. Costs and expenses                                                          2,457,671,031.93       1,883,168,620.16
   Including: Cost of sales                                                     1,660,826,958.58       1,305,238,877.12
                 Taxes and surcharges                                             45,674,668.50           45,863,744.88
                 Administrative expense                                          287,367,055.02          231,226,325.01
                 R&D expense                                                      30,052,292.96           24,392,333.00
                 Finance costs                                                   431,930,403.64          275,761,221.02
                    Including: Interest expense                                  512,196,697.85          370,157,265.19
                                    Interest income                               59,236,488.39           56,758,131.14
                 Asset impairment loss                                                -25,031.28                      -
                 Credit impairment loss                                            1,844,684.51              686,119.13
   Add: Other income                                                              20,798,769.01           13,529,113.16
         Return on investment (“-” for loss)                                  1,491,659,164.10         684,366,403.71
         Including: Share of profit or loss of joint ventures and associates     759,492,112.86          684,366,403.71
         Gain on changes in fair value (“-” for loss)                          803,456,059.74          137,919,530.28
         Asset disposal income (“-” for loss)                                      779,531.17           -3,211,017.91
 3. Operating profit (“-” for loss)                                           2,561,917,015.08       1,122,185,850.52
   Add: Non-operating income                                                       5,833,763.89            7,741,312.94
   Less: Non-operating expense                                                     2,959,236.62            1,607,303.64
 4. Total profit (“-” for loss)                                               2,564,791,542.35       1,128,319,859.82
   Less: Income tax expense                                                      428,680,888.19          196,407,949.26
 5. Net profit (“-” for net loss)                                             2,136,110,654.16         931,911,910.56
   5.1 Categorization by continuity of operation
      5.1.1 Net profit of continuing operation (“-” for net loss)             2,136,110,654.16         931,911,910.56
      5.1.2 Net profit of discontinued operation (“-” for net loss)                          -                      -
   5.2 Categorization by attribution of ownership
      5.2.1 Net profit attributable to parent company owners                     814,944,249.12          381,903,088.64
      5.2.2 Net profit attributable to minority interests                       1,321,166,405.04         550,008,821.92
 6. Other comprehensive income, net of tax                                      -185,440,397.65         -439,706,681.57
   Attributable to parent company owners                                         147,028,952.60         -135,541,068.56
      6.1 Items that will not be reclassified to profit or loss                       -74,999.61            -232,500.00
         6.1.1 Other comprehensive income that will not be reclassified to
                                                                                               -                      -
 profit or loss under the equity method
         6.1.2 Changes in the fair value of investments in other equity
                                                                                      -74,999.61            -232,500.00
 instruments
      6.2 Items that will be reclassified to profit or loss                      147,103,952.21         -135,308,568.56
         6.2.1 Other comprehensive income that will be reclassified to profit
                                                                                   5,312,466.40            1,593,391.45
 or loss under the equity method
         6.2.2 Differences arising from the translation of foreign
                                                                                 141,791,485.81         -136,901,960.01
 currency-denominated financial statements
    Attributable to minority interests                                          -332,469,350.25         -304,165,613.01
 7. Total comprehensive income                                                  1,950,670,256.51         492,205,228.99
   Attributable to parent company owners                                         961,973,201.72          246,362,020.08
   Attributable to minority interests                                            988,697,054.79          245,843,208.91
 8. Earnings per share
   8.1 Basic earnings per share                                                            0.454                  0.213
   8.2 Diluted earnings per share                                                          0.454                  0.213
                                                                        20
China Merchants Port Group Co., Ltd.                                         The Report for the First Quarter of 2019



4. Parent Company Income Statement
                                                                                                          Unit: RMB

                                        Item                              Q1 2019                  Q1 2018

 1. Operating revenue                                                       44,067,273.73            44,714,453.31

 Less: Cost of sales                                                        34,142,026.25            30,942,499.65

      Taxes and surcharges                                                     767,603.79               457,736.06

      Administrative expense                                                17,391,388.67            17,526,593.90

      Finance costs                                                          7,602,897.36             -4,335,368.90

         Including: Interest expense                                        11,494,411.09              6,181,659.53

                       Interest income                                       3,408,108.16              6,643,296.49

        Return on investment (“-” for loss)                               12,832,064.39            16,605,846.24

           Including: Share of profit or loss of joint ventures and
                                                                            12,832,064.39            16,605,846.24
 associates

        Asset disposal income (“-” for loss)                                             -           -934,006.99

 2. Operating profit (“-” for loss)                                       -3,004,577.95            15,794,831.85

 Add: Non-operating income                                                          6,680.14               3,113.00

 Less: Non-operating expense                                                    68,028.29                    108.95

 3. Total profit (“-” for loss)                                           -3,065,926.10            15,797,835.90

 4. Net profit (“-” for net loss)                                         -3,065,926.10            15,797,835.90

   4.1 Net profit of continuing operation (“-” for net loss)              -3,065,926.10            15,797,835.90

   4.2 Net profit of discontinued operation (“-” for net loss)                           -                      -

 5. Other comprehensive income, net of tax                                      75,000.00              -232,500.00

   5.1 Items that will not be reclassified to profit or loss                    75,000.00              -232,500.00

      5.1.1 Other comprehensive income that will not be reclassified to
                                                                                           -                      -
 profit or loss under the equity method
      5.1.2 Changes in the fair value of investments in other equity
                                                                                75,000.00              -232,500.00
 instruments

   5.2 Items that will be reclassified to profit or loss                                   -                      -

      5.2.1 Other comprehensive income that will be reclassified to
                                                                                           -                      -
 profit or loss under the equity method
      5.2.2 Differences arising from the translation of foreign
                                                                                           -                      -
 currency-denominated financial statements

 6. Total comprehensive income                                              -2,990,926.10            15,565,335.90




                                                                   21
China Merchants Port Group Co., Ltd.                                               The Report for the First Quarter of 2019


5. Consolidated Cash Flow Statement
                                                                                                                Unit: RMB
                                       Item                                        Q1 2019                Q1 2018
 1. Cash flows from operating activities:
   Cash received from sale of commodities and rendering of services               2,647,510,819.37       1,819,094,588.96
   Receipts of tax refunds                                                                   23.44           1,486,219.30
   Cash received from other operating activities                                   437,792,411.01         163,911,046.96
 Subtotal of cash received from operating activities                              3,085,303,253.82       1,984,491,855.22
   Payments for commodities and services                                           736,317,677.30         573,837,504.91
   Cash paid to and on behalf of employees                                         727,281,690.78         570,853,953.70
   Taxes paid                                                                      225,198,426.64         126,141,464.22
   Cash paid in other operating activities                                         247,542,337.46         225,497,221.04
 Subtotal of cash paid in operating activities                                    1,936,340,132.18       1,496,330,143.87
 Net cash received from/used in operating activities                              1,148,963,121.64        488,161,711.35
 2. Cash flows from investing activities:
   Return on investment                                                             78,044,109.23          64,600,205.42
   Cash received from the disposal of fixed assets, intangible assets and other
                                                                                    23,992,441.00            2,400,042.15
 long-lived assets
   Cash recevied from the disposal of subsidiaries and other business units                      -       1,411,633,655.68
   Cash received from other investing activities                                  1,315,937,327.03                      -
 Subtotal of cash received from investing activities                              1,417,973,877.26       1,478,633,903.25
   Payments for the acquisition of fixed assets, intangible assets and other
                                                                                   650,139,928.72         481,958,576.95
 long-lived assets
   Payments for investments                                                        415,845,100.00          63,458,839.54
   Net payments for the acquisition of subsidiaries and other business units                     -       4,844,558,474.75
   Cash used in other investing activities                                         255,659,104.33          25,463,391.23
 Subtotal of cash used in investing activities                                    1,321,644,133.05       5,415,439,282.47
 Net cash received from/used in investing activities                                96,329,744.21       -3,936,805,379.22
 3. Cash flows from financing activities:
   Cash received from capital contributions                                        460,518,459.96          15,950,000.00
      Including: Capital contributions by minority interests to subsidiaries       460,518,459.96          15,950,000.00
   Borrowings obtained                                                            5,720,896,211.18       9,562,436,640.00
 Subtotal of cash received from financing activities                              6,181,414,671.14       9,578,386,640.00
   Repayments of borrowings                                                       6,241,679,082.60       6,483,722,640.00
   Payments for interest and dividends                                             575,131,285.06         231,250,932.71
      Including: Dividends paid by subsidiaries to minority interests               24,360,440.28            9,307,713.92
   Cash used in other financing activities                                         114,109,500.00          31,028,691.80
 Subtotal of cash used in financing activities                                    6,930,919,867.66       6,746,002,264.51
 Net cash received from/used in financing activities                              -749,505,196.52        2,832,384,375.49
 4. Effect of foreign exchange rate changes on cash and cash equivalents            -39,571,072.82         -64,787,995.88
 5. Net increase in cash and cash equivalents                                      456,216,596.51         -681,047,288.26
 Add: Cash and cash equivalents, beginning of the period                          5,373,281,504.75       7,729,460,082.75
 6. Cash and cash equivalents, end of the period                                  5,829,498,101.26       7,048,412,794.49




                                                                  22
China Merchants Port Group Co., Ltd.                                              The Report for the First Quarter of 2019



6. Parent Company Cash Flow Statement
                                                                                                               Unit: RMB

                                       Item                                       Q1 2019                Q1 2018

 1. Cash flows from operating activities:

   Cash received from sale of commodities and rendering of services                51,258,278.89          47,824,975.82

   Cash received from other operating activities                                  236,323,914.96         212,220,080.47

 Subtotal of cash received from operating activities                              287,582,193.85         260,045,056.29

   Payments for commodities and services                                           15,108,762.13           14,411,768.08

   Cash paid to and on behalf of employees                                         40,097,735.78          45,449,193.68

   Taxes paid                                                                      18,735,502.45            1,361,330.99

   Cash used in other operating activities                                        183,200,592.57         188,998,993.20

 Subtotal of cash used in operating activities                                    257,142,592.93         250,221,285.95

 Net cash received from/used in operating activities                               30,439,600.92            9,823,770.34

 2. Cash flows from investing activities:

   Return on investment                                                            43,605,689.02          38,562,004.83
   Cash received from the disposal of fixed assets, intangible assets and other
                                                                                                -            178,876.00
 long-lived assets
   Cash received from other investing activities                                  228,867,355.24                       -

 Subtotal of cash received from investing activities                              272,473,044.26          38,740,880.83
   Payments for the acquisition of fixed assets, intangible assets and other
                                                                                     1,715,483.68           2,438,533.25
 long-lived assets
   Payments for investments                                                       375,334,390.00                       -

   Cash used in other investing activities                                        185,800,000.00                       -

 Subtotal of cash used in investing activities                                    562,849,873.68            2,438,533.25

 Net cash received from/used in investing activities                              -290,376,829.42         36,302,347.58

 3. Cash flows from financing activities:

   Borrowings obtained                                                            280,000,000.00                       -

 Subtotal of cash received from financing activities                              280,000,000.00                       -

   Repayments of borrowings                                                       250,000,000.00                       -

   Payments for interest and dividends                                             11,647,054.79                       -

   Cash used in other financing activities                                           1,413,599.00                      -

 Subtotal of cash used in financing activities                                    263,060,653.79                       -

 Net cash received from/used in financing activities                               16,939,346.21                       -

 4. Effect of foreign exchange rate changes on cash and cash equivalents            -3,957,304.53           -403,905.95

 5. Net increase in cash and cash equivalents                                     -246,955,186.82          45,722,211.97

 Add: Cash and cash equivalents, beginning of the period                          389,841,854.93         230,039,345.73

 6. Cash and cash equivalents, end of the period                                  142,886,668.11         275,761,557.70



                                                                 23
China Merchants Port Group Co., Ltd.                                    The Report for the First Quarter of 2019


II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases

√ Applicable □ Not applicable
Consolidated Balance Sheet
                                                                                                     Unit: RMB

                        Item                  31 December 2018       1 January 2019             Adjustment

 Current assets:

    Cash and bank balances                        7,070,308,704.75     7,070,308,704.75                            -

    Notes and accounts receivable                 1,120,839,172.51     1,120,839,172.51

      Including: Notes receivable                    11,608,669.43        11,608,669.43                            -

                   Accounts receivable            1,109,230,503.08     1,109,230,503.08                            -

    Prepayments                                    124,404,862.87         81,845,182.30            -42,559,680.57

    Other receivables                              799,559,226.45        799,559,226.45                            -

      Including: Interest receivable                 33,041,147.73        33,041,147.73                            -

                   Dividends receivable            259,804,145.16        259,804,145.16                            -

    Inventories                                    108,567,270.02        108,567,270.02                            -

    Assets classified as held for sale              115,356,162.94       115,356,162.94                            -

    Other current assets                          1,195,421,189.12     1,195,421,189.12                            -

 Total current assets                            10,534,456,588.66    10,491,896,908.09            -42,559,680.57

 Non-current assets:

    Long-term receivables                           793,046,240.11       793,046,240.11                            -

    Long-term equity investments                 50,176,577,263.40    50,176,577,263.40                            -

    Investments in other equity instruments        247,848,314.30        247,848,314.30                            -

    Other non-current financial assets            2,087,872,081.94     2,087,872,081.94                            -

    Investment property                           5,890,146,989.51     5,890,146,989.51                            -

    Fixed assets                                 22,994,190,880.43    17,477,797,429.30        -5,516,393,451.13 -

    Construction in progress                      5,499,426,090.06     5,499,426,090.06                            -

    Right-of-use assets                             N/A                6,549,564,031.55          6,549,564,031.55

    Intangible assets                            20,761,018,044.54    20,761,018,044.54                            -

    Goodwill                                      8,335,895,842.35     8,335,895,842.35                            -

    Long-term prepaid expense                      235,706,437.21        235,706,437.21                            -

    Deferred income tax assets                       66,708,157.19        66,708,157.19                            -

    Other non-current assets                       395,191,485.98        395,191,485.98                            -

 Total non-current assets                       117,483,627,827.02   118,516,798,407.44          1,033,170,580.42

 Total assets                                   128,018,084,415.68   129,008,695,315.53            990,610,899.85



                                                       24
China Merchants Port Group Co., Ltd.                                      The Report for the First Quarter of 2019


                         Item                   31 December 2018       1 January 2019             Adjustment
 Current liabilities:

   Short-term borrowings                            3,425,291,312.62     3,425,291,312.62                            -

   Notes and accounts payable                        429,120,690.97        429,120,690.97                            -

   Receipts in advance                                 29,170,709.86        29,170,709.86                            -

   Accrued payroll                                   433,489,555.40        433,489,555.40                            -

   Taxes payable                                     345,183,422.42        345,183,422.42                            -

   Other payables                                   2,245,670,528.89     2,245,670,528.89                            -

      Including: Interest payable                    555,545,627.60        555,545,627.60                            -

                     Dividends payable                 66,052,207.09        66,052,207.09                            -

   Contractual liabilities                             49,993,895.50        49,993,895.50                            -

   Current portion of non-current liabilities       2,349,849,449.96     2,473,888,817.84            124,039,367.88

   Other current liabilities                         602,659,721.80        602,659,721.80                            -

 Total current liabilities                          9,910,429,287.42    10,034,468,655.30            124,039,367.88

 Non-current liabilities:

   Long-term borrowings                             6,971,479,842.18     6,971,479,842.18                            -

   Bonds payable                                   22,097,467,096.40    22,097,467,096.40                            -

   Lease liabilities                                  N/A                1,020,239,824.73          1,020,239,824.73

   Long-term payables                               1,294,190,118.18     1,252,860,200.23            -41,329,917.95

   Long-term payroll payable                         375,325,127.65        375,325,127.65                            -

   Provisions                                          34,951,392.27        34,951,392.27                            -

   Deferred income                                   228,658,214.64        228,658,214.64                            -

   Deferred income tax liabilities                  2,911,074,941.27      2,911,074,941.27                           -

   Other non-current liabilities                    3,777,582,522.86     3,777,582,522.86                            -

 Total non-current liabilities                     37,690,729,255.45    38,669,639,162.23            978,909,906.78

 Total liabilities                                 47,601,158,542.87    48,704,107,817.53          1,102,949,274.66

 Shareholders’ equity:

   Share capital                                    1,793,412,378.00     1,793,412,378.00                            -

   Capital reserves                                19,426,912,957.05    19,426,912,957.05                            -

   Other comprehensive income                          88,925,978.57        88,925,978.57                            -

   Special reserves                                     8,231,080.43         8,231,080.43                            -

   Surplus reserves                                  527,175,908.67        527,175,908.67                            -

   Retained earnings                                8,915,817,110.21     8,877,958,652.78            -37,858,457.43
 Total equity attributable parent company
                                                   30,760,475,412.93    30,722,616,955.50            -37,858,457.43
 owners
 Minority interests                                49,656,450,459.88    49,581,970,542.50            -74,479,917.38

 Total shareholders’ equity                       80,416,925,872.81    80,304,587,498.00           -112,338,374.81

 Total liabilities and shareholders’ equity      128,018,084,415.68   129,008,695,315.53            990,610,899.85


                                                         25
 China Merchants Port Group Co., Ltd.                                     The Report for the First Quarter of 2019


 Balance Sheet of parent company
                                                                                                       Unit: RMB

                        Item                   31 December 2018        1 January 2019             Adjustment

Current assets:

  Cash and bank balances                            389,841,854.93         389,841,854.93                            -

  Notes and accounts receivable                      23,444,175.65          23,444,175.65                            -

                  Accounts receivable                23,444,175.65                       -                           -

  Other receivables                                 651,050,233.08         651,050,233.08                            -

     Including: Interest receivable                        34,899.02            34,899.02                            -

                  Dividends receivable              329,153,465.70         329,153,465.70                            -

  Inventories                                           165,553.46             165,553.46                            -

  Other current assets                                 1,563,111.61           1,563,111.61                           -

Total current assets                               1,066,064,928.73      1,066,064,928.73                            -

Non-current assets:

  Long-term receivables                               11,004,284.75         11,004,284.75                            -

  Long-term equity investments                    28,544,261,576.96     28,544,261,576.96                            -

  Investments in other equity instruments           151,746,700.00         151,746,700.00                            -

  Investment property                                12,685,959.06          12,685,959.06                            -

  Fixed assets                                      190,804,655.63         190,804,655.63                            -

  Construction in progress                             2,500,843.87          2,500,843.87                            -

  Right-of-use assets                                N/A                    11,966,380.80             11,966,380.80

  Intangible assets                                  57,755,603.44          57,755,603.44                            -

  Long-term prepaid expense                            3,785,801.32          3,785,801.32                            -

Total non-current assets                          28,974,545,425.03     28,986,511,805.83             11,966,380.80

Total assets                                      30,040,610,353.76     30,052,576,734.56             11,966,380.80

Current liabilities:

  Short-term borrowings                             377,716,000.00         377,716,000.00                            -

  Notes and accounts payable                         13,125,624.29          13,125,624.29                            -

  Contractual liabilities                                  92,003.00            92,003.00                            -

  Accrued payroll                                    26,605,190.52          26,605,190.52                            -

  Taxes payable                                      18,826,587.50          18,826,587.50                            -

  Other payables                                    717,536,924.18         717,536,924.18                            -

     Including: Interest payable                      15,011,119.82         15,011,119.82                            -

                  Dividends payable                  37,608,540.65          37,608,540.65                            -

  Current portion of non-current liabilities        299,531,506.81         305,454,311.08              5,922,804.27

  Other current liabilities                         200,000,000.00         200,000,000.00                            -

Total current liabilities                          1,653,433,836.30      1,659,356,640.57              5,922,804.27



                                                        26
 China Merchants Port Group Co., Ltd.                                                       The Report for the First Quarter of 2019


                         Item                           31 December 2018                1 January 2019                  Adjustment

Non-current liabilities:

  Lease liabilities                                             N/A                             6,369,170.76                  6,369,170.76

  Long-term payables                                            151,710,000.00               151,710,000.00                                   -

  Deferred income tax liabilities                                34,179,375.00                 34,179,375.00                                  -

Total non-current liabilities                                   185,889,375.00               192,258,545.76                   6,369,170.76

Total liabilities                                             1,839,323,211.30              1,851,615,186.33                 12,291,975.03

Shareholders’ equity:

  Share capital                                               1,793,412,378.00              1,793,412,378.00                                  -

  Capital reserves                                          25,517,647,180.04             25,517,647,180.04                                   -

  Other comprehensive income                                    102,638,125.00               102,638,125.00                                   -

  Special reserves                                                  470,465.59                    470,465.59                                  -

  Surplus reserves                                              527,175,908.67               527,175,908.67                                   -

  Retained earnings                                             259,943,085.16               259,617,490.93                    -325,594.23

Total shareholders’ equity                                 28,201,287,142.46             28,200,961,548.23                    -325,594.23

Total liabilities and shareholders’ equity                 30,040,610,353.76             30,052,576,734.56                  11,966,380.80

 Note for adjustment:
 The Company began to implement the new lease standards 1 January 2019. On that implementation date, the Company conducted
 financial accounting treatment in situations where lease liabilities shall be measured by the present value discounted by lessee’s
 incremental borrowing rate on the first execution day or right-of-use assets shall be measured by new lease standards if it’s from the
 beginning date of lease term.
 In the balance sheet, assets and liabilities increased at the same time due to the existence of operational lease contract, but it did not
 have significant impacts on the Company’s financial situations.


 2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
 Standards Governing Financial Instruments or Leases

 □ Applicable √ Not applicable




                                                                    27
China Merchants Port Group Co., Ltd.            The Report for the First Quarter of 2019


III、Auditor’s report

Is this report audited?
□ Yes √ No




                                              For and on behalf of the Board

                                                       Bai Jingtao

                                                  Legal representative of

                                            China Merchants Port Group Co., Ltd.

                                                    Dated 30 April 2019




                                       28