China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2023-027
CHINA MERCHANTS PORT GROUP CO., LTD.
ANNUAL REPORT 2022 (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 2,499,074,661 shares, a cash
dividend of RMB4.50 (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
Please refer to the full Annual Report for the definitions of the abbreviations mentioned in this
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
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) Principal Activities of the Company during the Reporting Period
The Company is principally engaged in port operations, ancillary port-related services and bonded
logistics operations. The port operations include containers and bulk cargos, with a comprehensive
port network across the hub locations along coastal China, and the terminals which the Company
invested in or invested in and managed are located in hub locations across Hong Kong, Taiwan,
Shenzhen, Ningbo, Shanghai, Qingdao, Tianjin, Dalian, Zhangzhou, Zhanjiang, and Shantou, as
well as in Asia, Africa, Europe, Oceania, South and North America, amongst others. The ancillary
port-related services mainly include smart port solutions, an open platform for smart ports, smart
port technology operation and other port information technology businesses, as well as port tug
services and port trimming services, engineering supervision and management business. The
bonded logistics operations mainly include the provision of warehousing leasing, customs clearance,
division or merger of cargoes, documentation and other services for customers in Shenzhen
Qianhaiwan Bonded Port Zone, Qingdao Qianwan Bonded Port Zone, Tianjin Dongjiang Bonded
Port Zone, the free trade zone in Djibouti and Hambantota industrial park.
The main business segments of the Company are as follow:
Business
Applications area
segments
Containers: the Company provides ship berthing, loading and unloading
services for ship companies, offers container storage service to ship companies
and cargo owners and provides overhead box services for tractor companies.
Port operations
The Company also engages in the businesses of division or merger of cargoes
in containers, container leasing and container;
Bulk cargoes: the Company is engaged in bulk cargo handling and
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
transportation in port zones, as well as storage services in yards. The major
types of cargoes handled include food, steel, woods.
The ancillary port-related services mainly include smart port solutions, an
Ancillary open platform for smart ports, smart port technology operation and other port
port-related services information technology businesses, as well as port tug services and port
trimming services, engineering supervision and management business.
The Company provides various services for clients (including logistics
companies, trading companies or cargo owners), for example, warehouse/yard
Bonded logistics
leasing, loading and unloading in warehouses/yards, customs clearance and
operations
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 foundation of national economy and social progress, and is closely
linked to global economic and trade development. The Company is the China’s largest and global
leading port developer, investor, and operator, with a comprehensive port network across the hub
locations along coastal area of China, as well as Asia, Africa, Europe, Mediterranean Sea, Oceania,
South and North America, amongst others. Upholding an enterprising, steady and efficient
operating style, the Company capitalises 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 business and launches
integrated park development business, promotes the transformation and upgrade of the port industry,
develops port supporting industries, and is committed to improving the industrial efficiency and
creating greater value through the synergy within existing terminal network.
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
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
Unit: RMB
Change of 31
December 2022
31 December 2022 31 December 2021 over 31 31 December 2020
December 2021
(%)
Total assets 197,525,530,887.76 175,984,101,168.66 12.24% 168,728,326,345.77
Equity attributable
to the listed
54,267,143,304.02 39,801,188,662.13 36.35% 37,165,277,744.78
company’s
shareholders
2022-over-
2022 2021 2020
2021 change
Operating revenue 16,230,489,127.55 15,283,808,174.60 6.19% 12,756,744,317.91
Net profit
attributable to the
3,337,446,222.82 2,685,829,204.07 24.26% 2,073,844,409.04
listed company’s
shareholders
Net profit
attributable to the
listed company’s
3,345,170,153.81 2,355,700,274.23 42.00% 1,271,352,002.64
shareholders before
exceptional gains
and losses
Net cash generated
from/used in 6,920,377,390.35 6,510,326,570.48 6.30% 5,551,289,013.01
operating activities
Basic earnings per
1.61 1.40 15.00% 1.08
share (RMB/share)
Diluted earnings per
1.61 1.40 15.00% 1.08
share (RMB/share)
Weighted average
7.54% 6.99% 0.55% 5.67%
return on equity (%)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 4,020,203,113.25 4,130,259,253.94 3,971,339,655.24 4,108,687,105.12
Net profit attributable to the
listed company’s 859,493,121.60 1,122,368,203.02 771,042,670.19 584,542,228.01
shareholders
Net profit attributable to the 838,801,864.90 1,081,747,380.70 738,503,229.51 686,117,678.70
listed company’s
4
China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
shareholders before
exceptional gains and losses
Net cash generated
from/used in operating 999,264,265.35 2,221,986,911.74 1,782,510,001.40 1,916,616,211.86
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
32,505 shareholders
31,210 ( 20,08 ordinary Number of preferred
Number of (21,367 with resumed
9 A-sharehold shareholders at shareholders with
ordinary A-shareholder voting rights at
ers and 11,12 the month-end resumed voting rights 0 0
shareholders at s and 11,138 the month-end
1 B-shareholde prior to the at the period-end (if
the period-end B-shareholders prior to the
rs) disclosure of any)
) disclosure of
this Report
this Report (if
any)
5% or greater shareholders or top 10 shareholders
Sharehold Increase/dec
Total shares
Name of Nature of ing rease in the Restricted Unrestricted
held at the Shares in pledge or frozen
shareholder shareholder percentag Reporting shares held shares held
period-end
e Period
CHINA
MERCHANTS
PORT Foreign
INVESTMENT legal 45.96% 1,148,648,648 0 0 1,148,648,648 0
DEVELOPMENT person
COMPANY
LIMITED
ZHEJIANG
PROVINCIAL
SEAPORT State-owne
INVESTMENT & d legal 23.08% 576,709,537 576,709,537 576,709,537 0 0
OPERATION person
GROUP CO.,
LTD.
CHINA
MERCHANTS
State-owne
GANGTONG
d legal 14.84% 370,878,000 0 0 370,878,000 0
DEVELOPMENT
person
(SHENZHEN)
CO., LTD.
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
SHENZHEN
INFRASTRUCTU
RE
INVESTMENT
FUND-SHENZHE
Fund and
N
wealth
INFRASTRUCTU 2.59% 64,850,182 0 0 64,850,182 0
managemen
RE
t products
INVESTMENT
FUND
PARTNERSHIP
(LIMITED
PARTNERSHIP)
CHINA-AFRICA State-owne
DEVELOPMENT d legal 2.57% 64,102,564 0 0 64,102,564 0
FUND person
BROADFORD State-owne
GLOBAL d legal 2.21% 55,314,208 0 0 55,314,208 Unknown
LIMITED person
HONG KONG
Foreign
SECURITIES
legal 0.25% 6,210,896 165,827 0 6,210,896 Unknown
CLEARING
person
COMPANY LTD.
Domestic
ZHU HUI natural 0.12% 2,880,003 -78,000 0 2,880,003 Unknown
person
CHINA
Foreign
MERCHANTS
legal 0.10% 2,542,455 -21,100 0 2,542,455 Unknown
SECURITIES
person
(HK) CO., LTD.
MONETARY
Foreign
AUTHORITY OF
legal 0.09% 2,172,637 2,172,637 0 2,172,637 Unknown
MACAO-SELF-O
person
WNED FUNDS
Among the foregoing shareholders, Shenzhen Infrastructure Investment Fund-Shenzhen
Infrastructure Investment Fund Partnership (Limited Partnership) subscribed for 64,850,182
shares of the Company offered in a non-public manner in 2019 for raising supporting funds at
RMB17.16 per share. The subscribed shares were floated on Shenzhen Stock Exchange on 4
Strategic investors or general November 2019, and the lock-in period lasted until 4 November 2020. China-Africa Development
legal person becoming top-ten Fund subscribed for 64,102,564 shares of the Company offered in a non-public manner in 2019
ordinary shareholders due to for raising supporting funds at RMB17.16 per share. The subscribed shares were floated on
placing of new shares (if any) Shenzhen Stock Exchange on 4 November 2019, and the lock-in period lasted until 4 November
2020. Zhejiang Provincial Seaport Investment & Operation Group Co., Ltd. subscribed for
576,709,537 shares of the Company offered in a non-public manner at RMB18.50 per share. The
subscribed shares were floated on Shenzhen Stock Exchange on 12 October 2022, and the lock-in
period lasts until 12 October 2025.
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary of
Related or acting-in-concert
Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China
parties among the shareholders
Merchants Port Investment Development Company Limited. The Company does not know
above
whether the other unrestricted shareholders are related parties or not.
Above shareholders involved in
entrusting/being entrusted and None
giving up voting rights
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 PORT
RMB
INVESTMENT
1,148,648,648 ordinary 1,148,648,648
DEVELOPMENT COMPANY
share
LIMITED
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
CHINA MERCHANTS
RMB
GANGTONG
370,878,000 ordinary 370,878,000
DEVELOPMENT
share
(SHENZHEN) CO., LTD.
SHENZHEN
INFRASTRUCTURE
INVESTMENT
RMB
FUND-SHENZHEN
64,850,182 ordinary 64,850,182
INFRASTRUCTURE
share
INVESTMENT FUND
PARTNERSHIP (LIMITED
PARTNERSHIP)
RMB
CHINA-AFRICA
64,102,564 ordinary 64,102,564
DEVELOPMENT FUND
share
Domestical
BROADFORD GLOBAL ly listed
55,314,208 55,314,208
LIMITED foreign
share
RMB
HONG KONG SECURITIES
6,210,896 ordinary 6,210,896
CLEARING COMPANY LTD.
share
RMB
ZHU HUI 2,880,003 ordinary 2,880,003
share
Domestical
CHINA MERCHANTS ly listed
2,542,455 2,542,455
SECURITIES (HK) CO., LTD. foreign
share
MONETARY AUTHORITY RMB
OF MACAO-SELF-OWNED 2,172,637 ordinary 2,172,637
FUNDS share
RMB
MAI SHUQING 2,129,247 ordinary 2,129,247
share
Related or acting-in-concert
parties among top 10
China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary of
unrestricted public
Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China
shareholders, as well as
Merchants Port Investment Development Company Limited. The Company does not know
between top 10 unrestricted
whether the other unrestricted shareholders are related parties or not.
public 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.
(3) Ownership and Control Relations between the Actual Controller and the Company
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
(1) Bond Profile
Outstanding balance
Bond name Abbr. Bond code Issue date Maturity Interest
(RMB’0,000) rate
2020 Public
Offering of
Corporate
Bonds of
China
20 CMPort
Merchants 149170 7 July 2020 8 July 2023 200,000 3.36%
01
Port Group
Co., Ltd. (for
qualified
investors)
(Phase I)
2022 Public
Offering of
Corporate
Bonds of
China
22 CMPort 29 August 2022 to
Merchants 148052 30 August 2025 300,000 2.69%
01 30 August 2022
Port Group
Co., Ltd. (for
professional
investors)
(Phase I)
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
Outstanding balance
Bond name Abbr. Bond code Issue date Maturity Interest
(RMB’0,000) rate
2022 Public
Offering of
Corporate
Bonds of
China
Merchants 5 September 2022
22 CMPort
Port Group 148058 to 6 September 6 September 2024 300,000 2.45%
02
Co., Ltd. (for 2022
professional
investors)
(Phase II)
The maturity date of
2022 Public the bonds is 9
Offering of September 2023; if
Corporate the issuer exercises
Bonds of the redemption
China option, the maturity
Merchants 8 September 2022
22 CMPort date of the bonds is
Port Group 148060 to 9 September 200,000 1.93%
03 8 March 2023; if the
Co., Ltd. (for 2022
investor exercises
professional the resale option, the
investors) maturity date of the
(Phase III) resale portion of the
bonds is 8 March
2023.
Interest payment during the During the Reporting Period, interest on “20 CMPort 01” for the period from 8 July 2021 to 7
Reporting Period July 2022 was paid on 8 July 2022.
(2) Latest Rating and Rating Change
On 23 February 2023, China Chengxin International Credit Rating Co., Ltd. (CCXI) issued the
2023 Credit Rating Report (CCXI-20230389M-01). CCXI granted the corporate credit rating of
AAA to the Company with a rating outlook of Stable. During the reporting period, there is no rating
difference in the main 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
Item 31 December 2022 31 December 2021 Change
Current ratio 76.93% 75.96% 1.28%
Debt/asset ratio 35.07% 36.91% -1.84%
Quick ratio 76.08% 75.32% 1.01%
2022 2021 Change
Net profit before exceptional
334,517.02 235,570.03 42.00%
gains and losses (RMB ’0,000)
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
Debt/EBITDA ratio 21.47% 21.65% -0.18%
Interest cover (times) 4.14 4.62 -10.39%
Cash-to-interest cover (times) 5.02 5.02 0.00%
EBITDA-to-interest cover 6.59
7.16 -7.96%
(times)
Debt repayment ratio (%) 100.00% 100.00% -
Interest payment ratio (%) 100.00% 100.00% -
Part III Significant Events
1. Implementation of business plan during the Reporting Period
During the Reporting Period, in face of the severe and complicated macro environment, the
Company spared no effort in stabilising the economy and ensuring the smooth operation of the ports,
while at the same time, it captured every opportunity to expand its business and improve its quality
and efficiency, and through which, the Company’s business operated in a stable manner with
enhanced quality. To continuously provide unimpeded and stable services for international supply
and industrial chain, the Company resolutely pushed forward the development of homebase port
and regional leading port, sped up endogenous growth and innovation upgrading, thus strengthening
value creation for customers and forming a synergetic and win-win situation with partners.
(1) Creating new situation for the development of leading ports with endogenous growth. In
2022, the price in the container business of ports the Company mainly controls was raised in the
first half of the year by capitalising the situation, which enabled the Company to secure the
container volume against the situation and made progress in an overall stable performance in the
second half of the year. For the domestic homebase port, the market share of West Shenzhen
homebase port in the three ports in South China increased to 19.1% by increasing 1.2 percentage
points, making new record in the latest five years. The Company established South China Bulk
Cargo Operation Center, opening a new development pattern of high quality for West Shenzhen
homebase port. Tonggu channel enabled ships of 200,000 tonnes to sail at night, strengthened its
capability to serve large ships at 24 hours and overall competitiveness. For the overseas homebase
port, the Company was committed to build the overseas homebase port in Sri Lanka, CICT and
HIPG into an international container hub port and a reginal comprehensive leading port,
respectively. Besides, the Company continued to advance the construction of the international
shipping center in South Asia, and continued to improve the integrated operation and management
of the two ports. For the severe political and economic crisis and other challenges encountered by
projects in Sri Lanka, the Company coped with them properly, thus guaranteed the production,
stabilised the supply and achieved growth regardless of the market recession.
(2) Improving asset quality by optimising asset structure. In the first half of the year, China
Merchants Port, a holding subsidiary of the Company, held additional shares of 329 million of SIPG.
After the completion, the shareholding in SIPG held by China Merchants Port increased from 26.64%
to 28.05%, which consolidated the Company's position as the second largest shareholder of SIPG
and strengthened the synergetic development with SIPG. The Company completed the acquisition
of 14.6% equity of Asia Airfreight Terminal (AAT), and its shareholding increased to 34.6% after
the completion. Besides, the Company expanded the space for airport business development, and
continuously deepened the logistics supply chain layout in the Guangdong-Hong Kong-Macao
Greater Bay Area. In the second half of the year, Zhejiang Seaport Group subscribed for, as a
strategic investor, 577 million A-shares in the private placement of the Company by capital
injection of RMB10.669 billion, and its shareholding was 23.08% after the completion and became
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
the second largest shareholder of the Company. At the same time, the Company subscribed for, as a
strategic investor, 3.647 billion A-shares in the private placement of the Ningbo Port by capital
injection of RMB14.114 billion, and its shareholding increased to 23.08% after the completion and
became the second largest shareholder of Ningbo Port. The strategic increase of shareholdings by
the two listed companies strengthened the role of both ports as an integrated hub and
comprehensively enhanced the high-quality development standard of ports. The Company increased
its shareholding of Antong Holdings to 6.83%, further expanding the influence of the port and
shipping business.
(3) Inspiring new vitality of development for enterprises by deepening reform. Being listed in
the “Double-Hundred Enterprises” of the State-owned Enterprises Reform in 2022, the Company
integrated the reform work of “Double-Hundred Action” with the new ten-year strategic
development, to stimulate endogenous growth and innovation and upgrading with reform. In
accordance with the requirements under the “1+N” series documents of the State-owned Enterprises
Reform, the Company carried out general inspection on its governance mechanism, employment
mechanism and incentive mechanism, to address systematically the issues existed along the
Company’s development. The Company developed reform plan and working record by focusing on
the goal of “Five Breakthroughs and One Reinforcement” under the “Double-Hundred Action”. A
reform leading group and working group were set up by the Company to establish a systematic
working mechanism. By focusing on deepening the mixed-ownership reform, the Company
improved the governance operation efficiency, enhanced employment mechanism reform and the
building of international talents system, so as to comprehensively improve the standard of the party
leadership and party building of an enterprise. The steadfastly pushing forward of various works
under the “Double-Hundred Action” injected new vitality into the development of the Company and
helped the Company in building a world-class enterprise.
(4) Building benchmark of smart port by technological innovation. According to the
requirement of industry development and technological development trend, the Company continued
to revise and refine the digitalization plan, promoted the construction of three platforms, namely
“CMC Chip”, “CM ePort” and “SMP” to perfect relevant implementation plan and improve level of
industrial digitalization. “CMC Chip” carried out R&D on intelligent stowage, operation
stimulation and other functions, conducted 5G private network expansion verification, and
introduced vehicle-road collaborative testing. The construction of data base of China Merchants
Port, business process platform, data indicator platform and global monitoring center has been
finished on the “SMP” platform, and was officially applied into the operation analysis of enterprises.
“CM ePort” initiated the R&D of 3.0 version, which was smoothly put into trial operation on
Shenzhen West Port Area and Machong Port. The Company continued to push forward the
construction of Mawan Smart Port and Mawan autonomous driving project was successfully
selected as the first batch of intelligent transportation pilot application projects of the Ministry of
Communications, and the smart port solution was included in the Recommendations of Scientific &
Technological Innovation of Central Enterprise and won the only Special Award for Scientific and
Technological Progress issued by the China Ports Association in 2021. CMIT was approved by the
Ministry of Communications for TOS project, and the smart port solution of China Merchants Port
delivered phased outcomes.
(5) Extending new node of value chain by business expansion. By continuous using its edge as
the hub of supply chain of ports, the Company expanded the supply chain extension services with
technological revolution. With respect of domestic business, the Company increased its efforts in
expanding Combined Port in the Guangdong-Hong Kong-Macao Greater Bay Area to strengthen
the building of cargo collection, distribution and transport system, and build a collaborative alliance
featuring multifaceted businesses with the West Shenzhen homebase port as core under the
coordinated port framework. In 2022, 12 coordinated ports have been put into operation and a total
of 25 coordinated ports have been put into operation, which served more than 4,700 import and
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China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
export enterprises in the Greater Bay Area and completed serving approximately 5,300 barges and
approximately 7,000 large vessels, and handled 0.26 million TEUs, which further strengthened the
collaborative alliance featuring multifaceted businesses with the West Shenzhen homebase port as
core. With respect of oversea business, based on the port in Djibouti, the Company opened new
logistics channel for sea and air combined transportation between China and major cities on the
African continent, together with its strategic partners, cutting about 50% transport time compared to
whole sea transportation and about 50% transport cost compared to whole air transportation. This
new logistics channel has delivered goods to 16 major cities in 14 African countries, which further
enhanced the Company’s service capability in international logistics supply chain.
(6) Exploring new industrial pattern by comprehensively development. The Company
constantly pushed forward the innovation of business mode by leverage of the comprehensive
development segment, focused on customer development and promoted industry-driven investment.
HIPG Industrial Park was occupied by 40 contracted enterprises, covering many key industrial
projects such as tire factory, cement plant and yacht assembly site. It constantly provides flexible
and diversified land service mode, and continuously enriches the industrial park, thus to improve
the industrial chain in the park. Djibouti Free Trade Zone was occupied by 287 contracted
enterprises, increased 91 contracted enterprises as compared to the beginning of the year. The
online Djimart e-commerce platform was upgraded to enable online payment function through
UnionPay, which, together with offline exhibition of "Made in Liaocheng", consolidated the
development of services and products of different ports, provided customized services and products
to customers and accelerated the transformation of business mode from land warehouse lease to the
provision of overall solutions for customers.
(7) Deepening management reform by smart operation. The Company steadfastly drove forward
the digitalization development and transformation, thoroughly implemented the construction of
“digital investment port” and formally initiated “SMP”. Through business process and information
sharing module along with the intelligent analysis and decision supporting modules, “SMP” built a
one-stop comprehensive management platform of CMPort, supporting the business analysis of all
modules, namely containers, bulk cargos, logistics park, comprehensive development and intelligent
technology, which satisfied the requirements of corporate management of all levels. As the core
smart tool for building of port data management system and data asset management, “SMP” takes
digital technology as the key force and applies smart tools to drive the transformation of means,
modes and concepts of the operation and management of CMPort.
(8) Building new image for the port by green development. The Company deeply and thoroughly
implements the innovative, coordinated, green, open and shared development concept, adheres to
the human-oriented and green development philosophy and sticks to the principle of mutual
negotiation, joint construction and sharing, so as to comprehensively establish the ESG system of
CMPort, push forward the green, high quality and sustainable development both home and abroad
and continuously improve the Company’s ESG rating. In 2022, the Company was selected in the
ESGPioneer 50 Index of Central Enterprises from 426 central enterprises, ranking 12th in the index
list, which fully demonstrated the recognition from the SASAC on the Company’s work. Besides,
the Company also won the ESG Golden Bull AwardResponsible Investment Pioneer Award (ESG
金牛奖责任投资先锋奖) in 2022, fully demonstrating the high recognition from the industry on
the Company’s practice of ESG concept on port investment and operation and management.
2. Operating Division, Product Category, Operating Segment or Distribution Model
Contributing over 10% of Operating Revenue or Operating Profit
Unit: RMB
Operating revenue Cost of sales Gross YoY YoY YoY
profit change in change in change in
12
China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
margin operating cost of gross
revenue sales (%) profit
(%) margin
(%)
By operating division
Port
15,626,802,064.84 9,153,516,391.90 41.42% 6.77% 6.81% -0.02%
operations
By operating segment
Mainland
China, Hong
12,105,380,701.20 7,762,369,545.92 35.88% 4.80% 5.79% -0.60%
Kong and
Taiwan
Other
countries and 4,125,108,426.35 1,888,092,167.02 54.23% 10.50% 10.48% 0.01%
regions
3. YoY Changes to the Scope of Consolidated Financial Statements
In February 2022, CMPort established Port Development (Hongkong) Company Limited, a
wholly-owned subsidiary. In March 2022, CMPort invested all of its shares in CMPort Holdings
(1,627,635,473 shares, accounting for 42.995% of its total share capital) as the contribution.
Guangdong Shunkong Port-related Development and Construction Co., Ltd. (hereinafter referred to
as "Shunkong"), established in July 2020, is a wholly-owned subsidiary of Guangdong Shunkong
Urban Investment and Properties Co., Ltd. (hereinafter referred to as "Shunkong Urban Investment")
with a registered capital of RMB30 million. On 30 March 2022, Shunkong Urban Investment put up
for sale a 51% interest in Shunkong with a capital increase requirement at GuangDong United
Assets and Equity Exchange (Zhuhai Branch), while Shunkong Urban Investment still retained the
other 49% interest. In August, CMPort completed a capital injection of RMB50 million, including a
registered capital increase of RMB31.22 million, and held the 51% interest in Shunkong upon the
completion of the capital injection. Shunkong has completed the ownership change with the
industrial and commercial administration and the amendments to its articles of association regarding
shareholders' meetings in November, and CMPort has included Shunkong in its consolidated
financial statements since November 2022.
13
China Merchants Port Group Co., Ltd. Annual Report 2022 (Summary)
China Merchants Port Group Co., Ltd.
Board of Directors
Dated 4 April 2023
14
