China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2022-026
CHINA MERCHANTS PORT GROUP CO., LTD.
ANNUAL REPORT 2021 (SUMMARY)
Part I Important Notes
This Summary is based on the full Annual Report of China Merchants Port Group Co., Ltd.
(hereinafter referred to as the “Company”). In order for a full understanding of the Company’s
operating results, financial position and future development plans, investors should carefully read
the aforesaid full text on the media designated by the China Securities Regulatory Commission (the
“CSRC”).
This Summary is prepared in both Chinese and English. Should there be any discrepancy between
the two versions, the Chinese version shall prevail.
All the Company’s directors have attended the Board meeting for the review of this Report and its
summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the Reporting
Period:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan as follows: based on 1,922,365,124 shares, a cash
dividend of RMB4.30 (tax inclusive) per 10 shares is to be distributed to shareholders, with no
bonus issue from either profit or capital reserves.
Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting
Period :
□ Applicable √ Not applicable
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Please refer to the full Annual Report for the abbreviation mentioned in this summary.
Part II Key Corporate Information
1. Stock Profile
CM Port Group/ 001872/
Stock name Stock code
CM Port Group B 201872
Stock exchange for stock
Shenzhen Stock Exchange
listing
Contact information Board Secretary Securities Representative
Name Li Yubin Hu Jingjing
24/F, China Merchants Port 24/F, China Merchants Port
Plaza, 1 Gongye 3rd Road, Plaza, 1 Gongye 3rd Road,
Address
Zhaoshang Street, Nanshan, Zhaoshang Street, Nanshan,
Shenzhen, PRC Shenzhen, PRC
Fax +86 755 26886666 +86 755 26886666
Tel. +86 755 26828888 +86 755 26828888
Email address Cmpir@cmhk.com Cmpir@cmhk.com
2. Main business of the Company during the Reporting Period
(1) Main business scope and business models
The Company is principally engaged in the handling, warehousing and transportation of containers
and bulk cargoes, as well as the provision of other ancillary services. It principally operates 24
container berths and 18 bulk cargo berths in the ports in West Shenzhen and Dongguan Machong, 6
container berths, 3 bulk cargo berths, and 1 coal-handling specific berth in Shantou Port, 2 container
berths and 34 bulk cargo berths in Zhanjiang Port, 4 multi-purpose berths in Shunde New Port, 2
container berths and 6 bulk cargo berths in Zhangzhou Port, 4 container berths in Ningbo Daxie, 4
container berths in CICT, Sri Lanka, 4 multi-purpose berths, 2 oil berths and 4 container berths in
HIPG, Sri Lanka, 3 container berths in LCT, Togo, and 4 container berths in TCP, Brazil. Moreover,
the Company invests in container hubs in Shanghai and Tianjin and expands its layout to ports in
Asia, Africa, Europe, Oceania, South America and North America.
The major business segments of China Merchants Port Group Co., Ltd. are as follows:
Business Segments Applications
Container handling and warehousing: the Company provides ship
Cargo handling and
berthing, loading and discharging services to ship companies,
warehousing
offers container storage service to ship companies and cargo
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
owners and provides overhead box services to tractor companies.
The Company also engages in the businesses of division or merger
of cargoes in containers, container leasing and container
maintenance;
Bulk cargo handling and warehousing: the Company is engaged in
bulk cargo handling and transportation in port zones, as well as
storage services in yards. The major types of cargoes handled
include food, steel, woods and sandstones.
The ancillary port-related services of the Company mainly include
Ancillary port-related tugboat berthing assistance and barge services at the arrival of ships
services to the ports, tallying in the course of cargo handling, and supply of
shore power and freshwater for vessels.
The Company provides various services for clients (including
logistics companies, trading companies or cargo owners), for
Bonded logistics example, warehouse/yard leasing, loading and unloading in
operations warehouses/yards, customs clearance and division or merger of
cargoes at terminals. It also provides documentation services for
tractors arriving or leaving the bonded logistics parks.
(2) Development stage and cyclical characteristic of the industry in which the Company
operates and its industry position during the reporting period
The port industry is a crucial cornerstone industry for national economic and social development,
and is closely linked to global economy and trade. In 2021, the acceleration of global vaccination
process promoted the further normalization of global economy. As such, the global economy was
under an overall recovery and growth stage. The merchandise trade realized recovery growth,
driving the demand for global seaborne freight trade of containers. However, while the export
demand kept increasing, the slowdown of repositioning of European and American ports due to
impacts of pandemic and shortage of manpower, together with various “black swan events” such as
blocking of the Suez Canal and Yantian Port pandemic, led to problems of ship postponement, port
congestion and route adjustment from time to time, thereby causing partial unbalance of container
distribution, decreasing supply of effective seaborne freight capability, constant high level of
seaborne freight price in international market and frequent congestion in supply chain of global
seaborne freight logistics. On the other hand, however, new opportunities for industry also appeared
continuously. The new trends such as digitalization, carbon neutrality and new infrastructure will
add constant new impetus on industry transformation and development.
The Company is the largest port developer, investor and operator in the PRC and the leading
comprehensive port service provider in the world, with a well-developed port network at major hub
locations along coastal China. It has also successfully established presences in Asia, Africa, Europe,
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Mediterranean, Oceania, South America and North America. By its proactive, sound and efficient
operating style, the Company capitalizes on its global port portfolio, professional management
experience, the self-developed state-of-the-art terminal operation system and integrated logistics
management platform for exports and imports, thereby providing its customers with timely and
efficient port and maritime logistics services along with comprehensive and modern integrated
logistics solutions. In addition, the Company also invests in bonded logistics operation and launches
integrated park development business, facilitates the transformation and upgrade of port industry,
develops supporting port industry, striving to improve industry efficiency and create greater value
through the synergies of the existing terminal network.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason: Business combination under common control. For details, please refer to the "YoY
Changes to the Scope of Consolidated Financial Statements " in Part III of this summary.
Unit: RMB
Change of
31
December
31 December 31 December 2020 2021 over 31 December 2019
2021 31
December
2020 (%)
Original Restated Restated Original Restated
Total assets 175,984,101,168.66 168,543,611,777.21 168,728,326,345.77 4.30% 156,696,917,845.87 156,849,330,783.53
Equity attributable to
the listed company’s 39,801,188,662.13 37,117,806,052.18 37,165,277,744.78 7.09% 35,972,804,419.42 36,011,246,088.71
shareholders
2021-over
2020 -2020 2019
2021 change
Original Restated Restated Original Restated
Operating revenue 15,283,808,174.60 12,618,529,996.02 12,756,744,317.91 19.81% 12,123,829,423.74 12,262,451,114.91
Net profit attributable
to the listed company’ 2,685,829,204.07 2,065,322,969.66 2,073,844,409.04 29.51% 2,898,192,168.84 2,902,555,697.90
s shareholders
Net profit attributable
to the listed company’ 2,355,700,274.23 1,262,830,563.26 1,271,352,002.64 85.29% 1,037,766,875.23 1,042,130,404.29
s shareholders before
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
exceptional gains and
losses
Net cash generated
from/used in operating 6,510,326,570.48 5,495,800,917.01 5,551,289,013.01 17.28% 5,501,873,415.94 5,507,450,443.65
activities
Basic earnings per
1.40 1.07 1.08 29.63% 1.59 1.60
share (RMB/share)
Diluted earnings per
1.40 1.07 1.08 29.63% 1.59 1.60
share (RMB/share)
Weighted average
6.99% 5.66% 5.67% 1.32% 8.71% 8.71%
return on equity (%)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 3,574,128,378.48 3,765,814,483.78 4,047,333,525.94 3,896,531,786.40
Net profit attributable to the
532,867,484.84 1,144,167,861.33 756,770,050.94 252,023,806.96
listed company’s shareholders
Net profit attributable to the
listed company’s shareholders
524,972,071.00 1,119,723,989.97 588,153,132.19 122,851,081.07
before exceptional gains and
losses
Net cash generated from/used in
880,940,193.44 2,054,020,214.52 1,824,880,606.88 1,750,485,555.64
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or
semiyearly reports.
□ Yes √ No
4. Share Capital and Shareholder Information at the Period-End
(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
31,102 (19,769 ordinary 31,367 shareholders
Number of (19,854 Number of preferred with resumed
A-shareholders shareholders at
ordinary and 11,333 the month-end A-shareholder shareholders with voting rights at
0 0
shareholders at B-shareholders s and 11,513 resumed voting rights at the month-end
prior to the
the period-end B-shareholders the period-end (if any) prior to the
） disclosure of
) disclosure of
this Report
this Report (if
any)
5% or greater shareholders or top 10 shareholders
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Increase/dec
Shareholdi Total shares
Name of Nature of rease in the Restricted Unrestricted Shares in pledge or
ng held at the
shareholder shareholder Reporting shares held shares held frozen
percentage period-end
Period
China Merchants
Port Investment Foreign legal
59.75% 1,148,648,648 0 1,148,648,648 0 0
Development person
Company Limited
CHINA
MERCHANTS
GANGTONG State-owned
19.29% 370,878,000 0 0 370,878,000 0
DEVELOPMENT legal person
(SHENZHEN)
CO., LTD.
SHENZHEN
INFRASTRUCTU
RE
INVESTMENT
FUND-SHENZHE
Fund and
N
wealth
INFRASTRUCTU 3.37% 64,850,182 0 0 64,850,182 0
management
RE
products
INVESTMENT
FUND
PARTNERSHIP
(LIMITED
PARTNERSHIP)
CHINA-AFRICA
State-owned
DEVELOPMENT 3.33% 64,102,564 0 0 64,102,564 0
legal person
FUND
BROADFORD
State-owned
GLOBAL 2.88% 55,314,208 0 0 55,314,208 0
legal person
LIMITED
HONG KONG
SECURITIES Foreign legal
0.31% 6,045,069 3,337,168 0 6,045,069 Unknown
CLEARING
COMPANY LTD. person
Domestic
ZHU HUI 0.15% 2,958,003 2,958,003 0 2,958,003 Unknown
natural person
CHINA
MERCHANTS State-owned
0.13% 2,563,555 -42,800 0 2,563,555 Unknown
SECURITIES
(HK) CO., LTD. legal person
Domestic
JIN XING 0.12% 2,245,196 2,245,196 0 2,245,196 Unknown
natural person
ARROWSTREET
EMERGING
Foreign legal
MARKET ALPHA 0.11% 2,192,691 1,273,101 0 2,192,691 Unknown
person
EXTENSION
TRUST FUND
Strategic investors or general legal
person becoming top-ten ordinary
N/A
shareholders due to placing of new
shares (if any)
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary
Related or acting-in-concert parties of Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of
among the shareholders above China Merchants Port Investment Development Company Limited. The Company does not
know whether the other unrestricted shareholders are related parties or not.
Above shareholders involved in
entrusting/being entrusted and None
giving up voting rights
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Special account for share
repurchases (if any) among the
None
top 10 shareholders (see note
10)
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held at the period-end
Type Shares
CHINA MERCHANTS RMB
GANGTONG DEVELOPMENT 370,878,000 ordinary 370,878,000
(SHENZHEN) CO., LTD. share
SHENZHEN INFRASTRUCTURE
INVESTMENT
FUND-SHENZHEN RMB
INFRASTRUCTURE 64,850,182 ordinary 64,850,182
INVESTMENT FUND share
PARTNERSHIP (LIMITED
PARTNERSHIP)
RMB
CHINA-AFRICA
64,102,564 ordinary 64,102,564
DEVELOPMENT FUND
share
Domesti
cally
BROADFORD GLOBAL
55,314,208 listed 55,314,208
LIMITED
foreign
share
RMB
HONG KONG SECURITIES
6,045,069 ordinary 6,045,069
CLEARING COMPANY LTD.
share
RMB
ZHU HUI 2,958,003 ordinary 2,958,003
share
Domesti
cally
CHINA MERCHANTS
2,563,555 listed 2,563,555
SECURITIES (HK) CO., LTD.
foreign
share
Domesti
cally
JIN XING 2,245,196 listed 2,245,196
foreign
share
Domesti
ARROWSTREET EMERGING cally
MARKET ALPHA EXTENSION 2,192,691 listed 2,192,691
TRUST FUND foreign
share
RMB
MAI SHUQING 2,129,247 ordinary 2,129,247
share
Related or acting-in-concert parties
among top 10 unrestricted public
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary
shareholders, as well as between
of Broadford Global Limited. The Company does not know whether the other unrestricted
top 10 unrestricted public
shareholders are related parties or not.
shareholders and top 10
shareholders
Top 10 ordinary shareholders
involved in securities margin N/A
trading (if any)
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
(1) Bond Profile
Outstan
ding
Bond name Abbr. Bond code Issue date Maturity balance Interes
Way of redemption
t rate
(RMB’
0,000)
2020 Simple interest is
adopted and
Public calculated by year.
Offering of No compound
20 CMPort 7 July 8 July interest is
Corporate 149170 200,000 3.36% calculated.
01 2020 2023
Bonds of Interests are paid
once every year
China and principals paid
Merchants in lump sum at
maturity. In the
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Port Group last installment,
the interests are
Co., Ltd.
paid together with
(for principal
repayment.
qualified
investors)
(Phase I)
Listing or trading place Shenzhen Stock Exchange
The Company's bonds are publicly issued to eligible investors who comply with
Appropriate arrangement the Measures for Issuance and Trading of Corporate Bonds and have opened an
of the investors eligible A-share securities account with Shenzhen Branch of China Securities
Depository and Clearing Co., Ltd. (CSDC).
Interest payment during During the Reporting Period, interest for the period from 8 July 2020 to 7 July
the Reporting Period 2021 was paid on 8 July 2021.
Execution during the
Reporting Period of
special clauses such as
the issuer’s or investors’ N/A
options, or the
exchangeable clause (if
applicable)
(2) Latest Rating and Rating Change
On 28 May 2021, China Chengxin International Credit Rating Co., Ltd. (CCXI) issued a credit
rating notice (XPWHZ [2021] No. G0493). CCXI granted the corporate credit rating of AAA to the
Company with a rating outlook of Stable, and the credit rating of AAA to the “2020 Public
Offering of Corporate Bonds of China Merchants Port Group Co., Ltd. (for qualified investors)
(Phase I)”.
During the Reporting Period, there was no rating difference in the corporate credit ratings of other
bonds and debt financing instruments issued by the Company in China.
(3) The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the
Company up the Period-end
Unit: RMB ’0,000
Item 2021 2020 Change
Debt/asset ratio 36.91% 37.29% -0.38%
Net profit before
exceptional gains and 235,570.03 127,135.20 85.29%
losses
Debt/EBITDA ratio 21.65% 18.74% 2.91%
Interest cover (times) 4.62 3.39 36.28%
Cash-to-interest cover 5.02 4.16 20.67%
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
(times)
EBITDA-to-interest cover
7.16 5.85 22.39%
(times)
Debt repayment ratio (%) 100.00% 100.00% -
Interest payment ratio (%) 100.00% 100.00% -
Part III Significant Events
1. Business Overview of the Reporting Period
(1) Overview of port business
In 2021, the Company’s ports handled a total container throughput of 136.394 million TEUs, up by
12.0% year-on-year. Bulk cargo volume handled by the Company’s ports increased by 35.0%
year-on-year to 613 million tons. During the Reporting Period, operating revenue of the Company
amounted to RMB15.28 billion, representing a year-on-year increase of 19.8%.
2. Implementation of business plan during the reporting period
During the Reporting Period, the Company grasped the bottom line to safeguard China under the
severe and complex situation of pandemic. We maintained a high standard for the daily pandemic
prevention and control and overcame the challenges brought by the pandemic so as to achieve a
solid start of the 14th Five-Year Plan. By embarking on a new development stage, being committed
to a new development philosophy, building a new pattern of development and growing in all
businesses, the Company captured the rebound of port industry, beat the general trends and better
than peers.
(1) Business volume recorded high again. In 2021, the Company's business achieved rapid growth,
and the port project completed a total container throughput of 136.394 million TEUs, up by 12.0%
year-on-year. Among them, container throughput in Mainland China increased 10.9% year on year,
outperforming the overall domestic level. Overseas container throughput increased 16.3% year on
year. In the bulk cargo business, its bulk cargo volume of 613 million tons, up by 35% year-on-year.
Thanks to Dalian Port Co., Ltd., the joint stock company, was generally changed to Liaoning Port
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
Co., Ltd due to the merger of Yingkou Port Co., Ltd. by it through conversion and absorption. As
such, the Company has been including the business volume of Yingkou Port Co., Ltd. since
February 2021. Benefited from the reasons above, bulk cargo volume significant increased to
further improve domestic ports presence and enhance the comprehensive competitiveness of the
Company.
(2) Focus on pandemic prevention and control as always. In 2021, the Company insisted on the
principle of “Strengthening the sense of responsibility, guarding the gate for the country, and
guarding the first line of defense for foreign defense input”, actively carried out pandemic
prevention and control, successfully disposed a number of ships involved in pandemic and tested by
various outbreaks. The Company strived to promote the construction of service station in Hong
Kong, implemented closed-loop management for the key personnel at frontline and achieved
"infection-free" among domestic employees. The safety of overseas employees attached great
importance to the Company, vaccinated for them and other measures were actively taken in order to
keep them safe. In the meantime, we are sticking to daily prevention and control in the way of
scientific and accurate, continuing to improve prevention and control mechanism and
well-preparing for anti-epidemic in a long term, which all play important role in safeguarding
supply chains in domestic ports.
(3) A new advance for the development of leading ports. As market opportunities that “Main
Line Ports” were outperformed met under the pandemic, there were 35 Liner Services added in
West Shenzhen homebase port during the year. In terms of the domestic reginal leading ports, it has
showed new advantages on facilities and management. The expansion of 0.3 million tons route and
upgrade on 0.4 million tons ironstone wharf in Zhanjiang port as well as the 0.15 million tons
general sea berths in Xiashan has completed and production capacity has significant improved. The
annual design capacity of Guang’ao Port Zone was increased from 0.43 million TEUs to 1.90
million TEUs as Phase II of Guang’ao Port Zone of Shantou Port successfully completed and
received acceptance. In terms of the port business overseas, it recorded an up-trend due to pandemic
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
eased and shipping routes adjustment. The container throughput of TCP in Brazil hit from 1.00
million TEUs to 1.10 million TEUs for the first time, up 12.4% year-on-year. From this, it joined
the “million TEUs port Club” CICT, a homebased port in overseas, took the initiative to adjust the
structure of shipping routes to be as qualified TEUs routes in local. Its container throughput first hit
3 million TEUs, up by 4.4% year-on-year. The corporation between HIPG and Ro-Ro shipping
companies were further tightened, over 0.5 million vehicles was achieved throughout the year, and
the bulk cargo business initially exceeded 1 million tons.
(4) Great progresses from innovation and development. According to the requirements and trend
of industrial and technology development, the Company continued to revised and improved
digitalization plan, promoted the construction of “CMCore” platform, “CM ePort” platform and
intelligent management platform SMP to perfect relevant implementation plan and improve level of
industrial digitalization; it kept promoting the construction of Mawan Smart Port that completed
and received acceptance at the end of June 2021 and putted into operation. Since its operation,
comments for such project from media and with industry are all in a good way, and it also won a
number of awards, including the Gold of the 4th “Blossom Cup” 5G Application Benchmarking
Contest hosted by MIIT (工信部第四届“绽放杯”5G 应用大赛标杆赛金奖), 2021 IAPH Sustained
Development Award (2021 年世界港口协会可持续发展奖) and etc.. The project was also obtained
17 patents, 16 software copyrights and participated in 2 industry standard setting. The operation
prosperity of Mawan Smart Port has further enhanced the West Shenzhen homebased port’s
competitiveness and influence in regional market and accelerated to be as “World-class leading
port”. When in the course of digital transformation, the Company actively explored model
innovation and cooperated closely with relevant partners to jointly build an international hydrogen
energy industry demonstration port and established a smart port technology innovation laboratory;
continued to expand the coordinated ports in the Guangdong-Hong Kong-Macao Greater Bay Area
and promoted such model to 10 branch ports of Greater Bay Area such as Shunde, Beijiao and etc.
This promotion is enhancing the trade facilitation in Greater Bay Area; CSRC has successfully
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
integrated and opened, awarded the national "Small Giant" enterprise recognition, and will become
an important platform for the Company's innovation-driven development in the future.
(5) Deepening the comprehensively development. In 2021, Bonded logistics operation in
domestic kept pushing business innovation, introducing new projects, ascending scale, optimizing
structure of self-operated business and improving core goods. With respect of overseas logistic
parks, the logistic park in Hambantota, Sri Lanka has a total of 35 enterprises with aiming at
introducing industrial clients which covered finance, logistics, maritime services, auto support,
government one-stop service institutions, etc.; the logistic park in Djibouti has a total of 196
enterprises, serving domestic production capacity and connecting to overseas markets through trade
and logistics.
2. Operating Division, Product Category, Operating Segment or Distribution Model
Contributing over 10% of Operating Revenue or Operating Profit
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Port
14,635,410,073.74 8,570,124,838.35 41.44% 20.10% 14.34% 2.95%
operations
By operating segment
Mainland
China, Hong
11,550,563,244.63 7,337,866,237.73 36.47% 24.79% 3.44% 13.11%
Kong and
Taiwan
Other
countries and 3,733,244,929.97 1,708,969,944.76 54.22% 6.65% 96.80% -20.97%
regions
3. YoY Changes to the Scope of Consolidated Financial Statements
On 18 December 2020, the Company signed the Equity Subscription and Capital Increase
Agreement for CMHIT with the Company's subsidiaries CMPort Holdings and CMHIT, Jifa
Logistics, DPCD, and Yingkou Port Group.
According to the Equity Subscription and Capital Increase Agreement, Jifa Logistics and DPCD
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China Merchants Port Group Co., Ltd. Annual Report 2021 (Summary)
would increase the capital of CMHIT with 29.40% and 49.63% of their respective shares in DPN,
and Yingkou Port Group would increase the capital of CMHIT with 100% of its equity in YPIT.
Before and after the merger, CMHIT, DPN and YPIT are all subject to the final control of CMG, the
actual controller of the Company, and such control is not temporary.
The above capital increase was completed on 9 February 2021. Upon completion of the capital
increase, CMHIT changed its name to CMIT. The Company, CMPort Holdings, Jifa Logistics,
DPCD and Yingkou Port Group hold 13.18%, 43.74%, 13.26%, 22.38% and 7.44% equity in CMIT,
respectively. CMIT remains a majority-owned subsidiary of the Company. CMIT holds 79.03%
equity in DPN and 100% equity in YPIT respectively, and is able to exercise control over the latter
two companies. Therefore, since 9 February 2021, the Company will follow the accounting
processing method for enterprise merger under the same control and include DPN and YPIT in the
consolidated scope of the Company's consolidated financial statements from the beginning of the
comparative financial statement period.
China Merchants Port Group Co., Ltd.
Board of Directors
Dated 31 March 2022
14
