China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2024-023
CHINA MERCHANTS PORT GROUP CO., LTD.
ANNUAL REPORT 2023 (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 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 2,499,462,404 shares, a cash
dividend of RMB5.80 (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
Summary.
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China Merchants Port Group Co., Ltd. Annual Report 2023 (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's core business includes major port business and comprehensive development
business, and the nurturing business includes smart technology business and ecological extension
business.
The major port business includes containers and bulk cargo handling and warehousing services. The
Company has established 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. In terms of port investment, the Company puts emphasis on its presence
in global major hub locations, gateway ports and regions with huge market potential, rapid
economic growth and promising development, in order to capture investment opportunities in ports,
logistics and related infrastructure and further improve the global port network.
In terms of the comprehensive development business, leveraging on the innovative park business
models and services, the Company conducts in-depth exploration of synergy value between ports
and parks, and provides customers with diversified value-added services, including warehousing
leasing, customs clearance, division or merger of cargoes, documentation services, amongst others,
in Shenzhen Qianhaiwan Bonded Port Zone, Qingdao Qianwan Bonded Port Zone, Tianjin
Dongjiang Bonded Port Zone, Djibouti International Free Trade Zone, Hambantota Industrial Park,.
In terms of the smart technology business, the Company utilizes cutting-edge digital technology to
fully leverage its advantages of big data and rich application scenarios, drives its industrial
digitalization and digital industrialization, and provides customers with premium port services
through smart port solutions, an open platform for smart ports and smart port technology
operations.
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China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
In terms of the ecological extension business, which is based on ports as the core and includes port
tugboat service, tallying business and engineering supervision and management business, the
Company integrates the port ecological service resources, promotes the collaboration and
cooperation between the upstream and downstream of the port logistics value chain and lays a key
focus on the openness and sharing of resources, to advance the smooth trade development as well as
the efficient operation of the logistics, information flow and capital flow of the port service chain
and further help customers reduce costs and increase efficiency.
The main business segments of the Company are as follows:
Business
Business content
segments
Port investment:
●The Company puts emphasis on its presence in global major hub
locations, gateway ports and regions with huge market potential, rapid
economic growth and promising development, in order to capture
investment opportunities in ports, logistics and related infrastructure,
and further improve the global port network.
Port operation:
Major port
business ●Containers: The Company provides ship berthing, loading and
unloading services to ship companies, offers container storage service
to ship companies and cargo 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
Core
leasing and container maintenance;
business
●Bulk cargoes: 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 Company provides various services, including warehouse/yard
leasing, loading and unloading in warehouses/yards, customs
clearance and division or merger of cargoes at terminals, intermodal
transportation, logistics and transportation and value-added
Comprehensive warehousing services for clients (including logistics companies,
development trading companies or cargo owners). Relying on the port-surrounding
business land resources, the Company conducts the comprehensive
development to enhance the land value as well as the value of
commercial properties, and provides its customers with quality
property leasing and other related services.
The Company focuses on smart port solutions, an open platform for
smart ports and smart port technology operation, accelerates the
Smart
Nurturing industry upgrading from "digitization" to "digital intelligence",
technology
business continues to empower the core businesses of port production,
business
management, service and ecology, and injects new momentum into
port enterprises through digital technology.
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China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
The business is based on ports as the core and includes port tugboat
service, tallying business and engineering supervision and
management business, and the Company integrates the port ecological
Ecological service resources, promotes the collaboration and cooperation between
extension the upstream and downstream of the port logistics value chain and lays
business a key focus on the openness and sharing of resources, to advance the
smooth trade development as well as the efficient operation of the
logistics, information flow and capital flow of the port service chain
and further help customers reduce costs and increase efficiency.
(2) Development stage and cyclical characteristic of the industry in which the Company
operates and its industry position during the Reporting Period
The Company is a leading global port investor, developer and operator. As one of the top port
operators in the world, the Company has the resource endowment and unique advantages to build a
world-class comprehensive port service provider. In terms of scale, as at the end of the reporting
period, the Company has established a relatively complete port network across major hub locations
along coastal China, with its presence in 51 ports in 26 countries and regions including Asia, Africa,
Europe, Oceania, South and North America. In 2023, according to the statistics of Alphaliner, the
Company's equity throughput of containers ranked third among the global port operators in terms of
the growth of top 20 ports in the third quarter. In terms of quality, the master terminals controlled by
the Company have occupied various market and regional leading positions, continued to promote
ESG construction, and strived to create an ESG port benchmark in the industry. In addition,
leveraging on the good ground of port technology and based on the CTOS system self-developed by
CMPort, the Company has worked out the worldwide first full-case, full-time, all-regime and
multi-factor traditional container terminal upgrading solution, and has built the trade facilitation
platform for the Guangdong-Hong Kong-Macao Greater Bay Area through blockchain technology,
which has been extended to 30 terminals to help enhance the trade facilitation level in the Greater
Bay Area. In terms of performance, the Company has continually promoted high-quality
development and has been an industry leader in terms of net profit margin and overall labour
productivity and other indicators.
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
On November 30, 2022, the Ministry of Finance promulgated the Interpretation of Accounting
Standards for Business Enterprises No. 16, in which the provision that "deferred income tax related
to assets and liabilities arising from single transactions does not apply to the accounting treatment
of initial recognition exemption" took effect on January 1, 2023. The Company has implemented
the above provisions since January 1, 2023, adopted the retrospective adjustment method for
accounting treatment, and restated the comparative annual financial statements.
Unit: RMB
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China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
2023-over-
2022 2021
2023 2022 change
Before Restated Restated Before Restated
Operating
revenue 15,750,475,780.22 16,230,489,127.55 16,230,489,127.55 -2.96% 15,283,808,174.60 15,283,808,174.60
(RMB)
Net profit
attributabl
e to the
listed 3,571,800,762.16 3,337,446,222.82 3,338,693,816.70 6.98% 2,685,829,204.07 2,685,752,918.53
company’s
shareholde
rs (RMB)
Net profit
attributabl
e to the
listed
company’s
shareholde 3,339,226,783.73 3,345,170,153.81 3,365,017,880.33 -0.77% 2,355,700,274.23 2,373,623,431.15
rs before
exceptiona
l gains and
losses
(RMB)
Net cash
generated
from/used
in 6,579,606,635.17 6,920,377,390.35 6,920,377,390.35 -4.92% 6,510,326,570.48 6,510,326,570.48
operating
activities
(RMB)
Basic
earnings
per share 1.43 1.61 1.61 -11.18% 1.40 1.40
(RMB/sha
re)
Diluted
earnings
per share 1.43 1.61 1.61 -11.18% 1.40 1.40
(RMB/sha
re)
Weighted
average
6.35% 7.54% 7.54% -1.19% 6.99% 6.99%
return on
equity (%)
Change of
31
December
31 December 31 December 2022 31 December 2021
2023 over 31
2023 December
2022 (%)
Before Restated Restated Before Restated
Total
assets 198,557,296,667.26 197,525,530,887.76 197,587,102,447.31 0.49% 175,984,101,168.66 176,040,600,182.21
(RMB)
Equity
58,847,592,947.55 54,267,143,304.02 54,291,425,886.65 8.39% 39,801,188,662.13 39,822,241,022.30
attributabl
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China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
e to the
listed
company’s
shareholde
rs (RMB)
(2) Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 3,693,584,257.97 4,101,677,313.02 3,960,045,863.71 3,995,168,345.52
Net profit attributable to the
listed company’s 850,039,606.18 1,052,295,153.25 1,246,983,201.06 422,482,801.67
shareholders
Net profit attributable to the
listed company’s
724,465,592.72 1,076,927,780.43 1,201,169,655.63 336,663,754.95
shareholders before
exceptional gains and losses
Net cash generated
from/used in operating 699,050,929.84 1,611,794,376.12 1,578,995,551.67 2,689,765,777.54
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
shareholders
29,064 (17,986 ordinary 30,312 (19,38 Number of preferred
Number of with resumed
A-shareholder shareholders at 9 A-sharehold shareholders with
ordinary voting rights at
s and 11,078 the month-end ers and 10,92 resumed voting rights 0 0
shareholders at the month-end
B-shareholder prior to the 3 B-sharehold at the period-end (if
the period-end prior to the
s) disclosure of ers) 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
6
China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
ZHEJIANG
PROVINCIAL
SEAPORT State-owne
INVESTMENT & d legal 23.08% 576,709,537 0 576,709,537 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.
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)
BROADFORD State-owne
GLOBAL d legal 2.21% 55,314,208 0 0 55,314,208 0
LIMITED person
CHINA-AFRICA State-owne
DEVELOPMENT d legal 1.69% 42,190,151 -21,912,413 0 42,190,151 0
FUND person
CHINA LIFE
INSURANCE
Funds,
COMPANY
wealth
LIMITED-TRADI
managemen 0.19% 4,734,022 4,734,022 0 4,734,022 0
TION- GENERAL
t products,
INSURANCE
etc.
PRODUCTS-005L
- CT001 HU
BASIC Funds,
ENDOWMENT wealth
INSURANCE managemen 0.18% 4,556,289 4,556,289 0 4,556,289 0
FUND 1006 t products,
PORTFOLIO etc.
HONG KONG
Foreign
SECURITIES
legal 0.17% 4,335,761 -187,135 0 4,335,761 0
CLEARING
person
COMPANY LTD.
CHINA
Foreign
MERCHANTS
legal 0.11% 2,668,175 125,720 0 2,668,175 0
SECURITIES
person
(HK) CO., LTD.
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.
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China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
Broadford Global Limited is the controlling shareholder of China Merchants Port Investment
Related or acting-in-concert
Development Company Limited and China Merchants Gangtong Development (Shenzhen) Co.,
parties among the shareholders
Ltd. The Company does not know whether the other unrestricted shareholders are related parties
above
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
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)
Domestical
BROADFORD GLOBAL ly listed
55,314,208 55,314,208
LIMITED foreign
share
RMB
CHINA-AFRICA
42,190,151 ordinary 42,190,151
DEVELOPMENT FUND
share
CHINA LIFE INSURANCE
COMPANY RMB
LIMITED-TRADITION- 4,734,022 ordinary 4,734,022
GENERAL INSURANCE share
PRODUCTS-005L- CT001 HU
BASIC ENDOWMENT RMB
INSURANCE FUND 1006 4,556,289 ordinary 4,556,289
PORTFOLIO share
RMB
HONG KONG SECURITIES
4,335,761 ordinary 4,335,761
CLEARING COMPANY LTD.
share
Domestical
CHINA MERCHANTS ly listed
2,668,175 2,668,175
SECURITIES (HK) CO., LTD. foreign
share
RMB
MAI SHUQING 2,458,747 ordinary 2,458,747
share
Related or acting-in-concert
parties among top 10
Broadford Global Limited is the controlling shareholder of China Merchants Port Investment
unrestricted public
Development Company Limited and China Merchants Gangtong Development (Shenzhen) Co.,
shareholders, as well as
Ltd. The Company does not know whether the other unrestricted shareholders are related parties
between top 10 unrestricted
or not.
public shareholders and top 10
shareholders
Top 10 ordinary shareholders At the end of the Reporting Period, the shareholder of the Company, Mai Shuqing held 2,458,747
involved in securities margin shares through the customer credit transaction secured securities account in China Merchants
trading (if any) Securities Co., Ltd.
Top 10 shareholders involved in refinancing business through lending shares
8
China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
□ Applicable √ Not applicable
Change in Top 10 shareholders compared with the last period
Change in Top 10 shareholders compared with last period
Shares held by shareholders through their
Shares lent for refinancing and not general accounts and credit accounts and
Name of returned yet at the period-end Shares lent for refinancing and not
Add/exit in the
shareholders (full returned yet at the period-end
Reporting Period
name)
% of total share % of total share
Total amount Total amount
capital capital
CHINA LIFE
INSURANCE
COMPANY
LIMITED-TRADI
Add 0 0.00% 4,734,022 0.19%
TION- GENERAL
INSURANCE
PRODUCTS-005L
- CT001 HU
BASIC
ENDOWMENT
INSURANCE Add 0 0.00% 4,556,289 0.18%
FUND 1006
PORTFOLIO
ZHU HUI Exit 0 0.00% 0 0.00%
MONETARY
AUTHORITY OF
Exit 0 0.00% 0 0.00%
MACAO-SELF-O
WNED FUNDS
(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 2023 (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 0 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 300,000.00 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 2023 (Summary)
Outstanding balance
Bond name Abbr. Bond code Issue date Maturity Interest
(RMB’0,000) rate
2022 Public
Offering of
Corporate
Bonds of
China 5 September 2022
22 CMPort
Merchants 148058 to 6 September 6 September 2024 300,000.00 2.45%
02
Port Group 2022
Co., Ltd. (for
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 0 1.93%
03 8 March 2023; if the
Co., Ltd. (for 2023
investor exercises
professional the resale option, the
investors) maturity date of the
(Phase III) resale portion of the
bonds is 8 March
2023.
During the Reporting Period, interest on “22 CMPort 03” for the period from 9 September 2022
Interest payment during the
to 7 March 2023 was paid on 8 March 2023. And interest on “20 CMPort 01” for the period from
Reporting Period
8 July 2022 to 7 July 2023 was paid on 8 July 2023.
(2) Latest Rating and Rating Change
On 29 May 2023, China Chengxin International Credit Rating Co., Ltd. (CCXI) issued the 2023
Follow-up Rating Report (XPWHZ [2023] No. 0268). 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
31 December 2022
Item 31 December 2023 Change
(Restated)
Current ratio 80.71% 76.93% 4.91%
Debt/asset ratio 36.76% 35.06% 1.70%
Quick ratio 79.96% 76.08% 5.10%
2023 2022(Restated) Change
Net profit before exceptional
gains and losses (RMB ’ 333,922.68 336,501.79 -0.77%
0,000)
EBITDA/debt ratio 19.65% 21.47% -1.82%
Interest cover (times) 3.85 4.14 -7.00%
Cash-to-interest cover (times) 4.38 5.02 -12.75%
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China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
EBITDA-to-interest cover
6.28 6.59 -4.70%
(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 complicated and changing situation for global supply
chain, the Company adhered to the general thrust of seeking progress while maintaining stability,
continued to overcome challenges and record steady growth by focusing on “high-quality
development” and endogenous growth as well as innovation and upgrade, made breakthrough in
“finely developing in Southeast Asia” and progress in lean operation as well as continuously
broke through the bottlenecks of homebase ports, and achieved better performance with higher
quality with respect to construction of homebase ports, technological innovation, market expansion,
operation management, deepening reform, comprehensive development, ESG construction and
other aspects.
(1) As for the construction of homebase ports, strengthening regional position and extending
value chain. The business volume of the West Shenzhen homebase port recorded a steady growth.
The container business created a record high in its market share in foreign trade in the
Guangdong-Hong Kong-Macao Greater Bay Area, representing a better performance than the
overall level of the Guangdong-Hong Kong-Macao Greater Bay Area. In addition, the coordinated
ports model in the Guangdong- Hong Kong-Macau Greater Bay Area has been promoted to other
regions on an ongoing basis. The Company efficiently propelled the development of the coordinated
ports system covering the West Shenzhen Port Zone and the river ports in the Pearl River Delta
region by integrating the functions of the blockchain platform of the coordinated port and the barge
scheduling platform of the Pearl River Delta region, which helped significantly streamline trade and
logistics development in the Greater Bay Area; With further consolidating the leading position of
bulk cargo operations, the Company continued to rank first in terms of its domestic market share of
imported wheat, meals and compound fertilizer. For Sri Lanka homebase port, the Company
continued to promote the construction of the international shipping hubs in South Asia. CICT
continued to optimize the structure of shipping routes by focusing on local volume of containers
and consolidating the foundation and created a record high in terms of its market share of local
containers; the Company continued to extend its industry chain and build a logistics ecosphere.
With the official initiating of trade and logistics project in South Asia, the Company made efforts to
transform it into a new business growth point. HIPG continued to strengthen its core
competitiveness by enhancing its foundation of RORO operations and actively exploring RORO
value-added services, and also collaborated with Sinopec in joint marketing of fuel oil , which
contributed to a new breakthrough in refueling for main channel ships and a history high in the
business volume of RORO vehicles and fuel oil.
(2) In terms of technological innovation, promoting digital innovation and constructing smart
port. CMIT, a subsidiary of the Company, continued to increase investment in R&D of
technologies, steadily implemented the critical task to implement the structural upgrade of the
Container Terminal Operation System (CTOS) of Ministry of Transport, continued to optimize the
proposal of autonomous driving technology, sped up the R&D and promotion of products of
12
China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
comprehensive service platform of “ CM ePort ” , and constantly promoted management
delegation of the Smart Management Platform (SMP). In 2023, significant results were made in
implementing the critical task of CTOS; “CM ePort” succeeded in entirely covering the
domestic master terminals controlled by the Company to provide customers with one-stop
intelligent services; The construction of data base of CMPort, business process platform, data
indicator platform and global monitoring center has been finished on the “SMP” platform, and
was comprehensively applied into the process management and operation analysis of enterprises.
The project won the first prize in the operation management category of the first State-Owned
Enterprise Digital Scene Professional Competition by SASAC and the Special Award for Science
and Technology Progress Award issued by the China Ports & Harbours Association in 2023.
(3) In terms of overseas expansion, implementing key projects and making breakthroughs in
key areas. In April 2023, an agreement on the South Asia Commercial and Logistics Hub in
Colombo Port was officially signed. The project, with a total investment of US$392 million, is
implemented by adopting the “Build-Operate-Transfer (BOT)” model, will provide a superior
logistics and warehousing facility, and will offer the full gamut of services such as container
disassembling and loading, bonded warehousing, free port operations, warehouse leasing and
harbour trade logistics. The project will not only significantly improve the logistics services there,
but will also attract more business and container volumes to Colombo Port, further strengthening
the position of Colombo Port as an important hub in South Asia. In November 2023, China
Merchants Port (a holding subsidiary of the Company) acquired 51% of the shares of PT Nusantara
Pelabuhan Handal Tbk (NPH) at a consideration of approximately US$61.20 million and will
become its controlling shareholder. NPH is a company listed on the Indonesia Stock Exchange and
principally engaged in the provision of container, multipurpose and general terminal services and
provision of engineering services for port equipment. It operates two container terminals at Jakarta
Port, the largest port in Indonesia. This acquisition is a great progress for the Company to expand its
business in Southeast Asia and will further enable the Company to share the dividends brought by
the rapid development of the RCEP region.
(4) In terms of operation management, facilitating intelligence-driven operation and
deepening lean management. By taking SMP as a starting point, the Company 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. 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. At
present, the Company has substantially realized the classification and management of information
of lifetime of assets, the standardization and online presence of major business processes. Besides,
the Company also optimizes the engineering management system and strengthens lifecycle
management of major projects; optimizes its profitability and constantly developed measures to
enhance its quality and efficiency; optimizes and reshapes its business and financial analysis
framework to strictly control the increase of cost and expenses; deepens cost control to form a
normalization mechanism of cost reduction and higher efficiency. The streamline operation of the
Company has achieved phased results.
(5) In terms of deepening reform, deeply implementing the “Double-Hundred Action” and
stimulating Company vitality. The Company has deeply implemented the “Double-Hundred
Action”. By focusing on "improving the core competitiveness of the enterprise and enhancing core
functions", the Company developed a reform implementation plan of the "Double Hundred Action"
for CMPort (2023-2025) and working record, specifying the goals, tasks, timetable and road map in
the next round of reform. In 2023, the Company has achieved full coverage of tenure system and
13
China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
contractual management, improved the market-oriented salary distribution mechanism, strengthened
the performance salary dual benchmarking, and explored the construction of a diversified and
international incentive system that combines short and medium term incentives, and supplements
cash and equity incentives. In May 2023, SASAC of the State Council released the special appraisal
results of “Double-Hundred Enterprises” of 2022 and the Company received “Excellent”
title for its outstanding achievements and remarkable reform results.
(6) In terms of comprehensive development, domestic parks advancing together and overseas
parks developing against the trend. China Merchants Bonded has achieved effective utilization of
new warehouses at a rate of over 95%. The export service platform for new energy vehicles has
performed well. Qingdao Bonded has maintained a stable occupancy rate, and diversified
self-operated business, achieving a doubled inbound logistics year-on-year. The Hambantota Port
Industrial Park has further explored the market, and realized a significant improvement on the
quality of customers. In 2023, 12 new customers have signed contracts to settle in the park,
contributing to a total of 51 companies settled in; the Djibouti International Free Trade Zone has
signed contracts with 351 companies, with container yard fully occupied and warehouse occupied
over 96%.
(7) In terms of ESG construction, actively implementing the ESG concept and having won
multiple awards. In 2023, under the guidance of the ESG strategic plan, the Company further
improved the comprehensive ESG management system, compiled an ESG work manual and
promoted the ESG upgrade of overseas projects. By focusing on main port business and industry
priorities, the Company fully leveraged its sufficient resources to promote more distinctive ESG
practices. The Company has been selected into the "China ESG Listed Companies First 100" list
and "China Top 100 ESG Listed Companies", and has also been included in the "CSI Securities
Times ESG Top 100 Index". In 2023, the MSCI rating of China Merchants Port (the Company's
holding subsidiary), was upgraded by two levels from "CCC" to "BB".
2. Operating Division, Product Category, Operating Segment or Distribution Model
Contributing over 10% of Operating Revenue or Operating Profit
Unit: RMB
YoY
YoY
YoY change in
Gross change in
change in gross
Operating revenue Cost of sales profit operating
cost of profit
margin revenue
sales (%) margin
(%)
(%)
By operating division
Port
15,036,273,586.66 8,796,081,230.13 41.50% -3.78% -3.90% 0.08%
operations
By operating segment
Mainland
China, Hong
10,958,608,605.93 7,201,809,031.78 34.28% -9.47% -7.22% -1.60%
Kong and
Taiwan
Other
countries and 4,791,867,174.29 2,116,377,675.97 55.83% 16.16% 12.09% 1.60%
regions
14
China Merchants Port Group Co., Ltd. Annual Report 2023 (Summary)
3. YoY Changes to the Scope of Consolidated Financial Statements
The Proposal on the Transfer of 45% Equity Interest in Ningbo Daxie China Merchants
International Terminals Co., Ltd. by a Majority-owned Subsidiary through Public Tender was
approved at the Second Extraordinary Meeting of the 10th Board of Directors of the Company in
2023 dated 20 March 2023. As such, Cyber Chic Company Limited (hereinafter referred to as
“Cyber Chic”), a subsidiary of the Company, was approved to transfer its 45% equity interest in
Ningbo Daxie China Merchants International Container Terminal Co., Ltd. (hereinafter referred to
as “CMICT”) through public tender on the China Beijing Equity Exchange. On 20 April 2023,
Cyber Chic put its 45% equity interest in CMICT to a public tender on the China Beijing Equity
Exchange. On 19 May 2023, Ningbo Zhoushan Port Company Limited (hereinafter referred to as
“Ningbo Zhoushan Port”) became the transferee, with a transaction price of RMB1,845 million.
On 25 May 2023, CYBER CHIC and Ningbo Zhoushan Port entered into the Equity Transaction
Contract. On 8 August 2023, CMICT changed its registered information with the competent
industrial and commercial administration and received its new business license upon the equity
transfer, with its name changed to “Ningbo Daxie Container Terminal Co., Ltd.” (hereinafter
refer to as “Ningbo Daxie”). As such, the equity transfer has been completed and Cyber Chic no
longer holds equity interest in Ningbo Daxie, and Ningbo Daxie is no longer a subsidiary within the
scope of the Company’s consolidated financial statements.
On 26 September 2023, the Company held the 4th Extraordinary Meeting of the 11th the Board of
Directors for 2023 to review and approve the Proposal on the Transfer and Acquisition of Equity
Interests in Relevant Subsidiaries and Related-party Transactions (the “ Transaction ” ).
Accordingly, China Merchants International Technology Company Limited (CMIT) subordinate to
the Company, transferred 100% share of Yingkou Port Information Technology Co., Ltd. (YPIT),
and 79.03% share of Dalian Port Logistics Network Co., Ltd. (DPN) to Liaoning Port Co., Ltd.
(Liaoning Port). Besides, the Company acquired 22.3779%, 13.2563% and 7.4495% (43.0837% in
aggregate) of the share in CMIT held respectively by Dalian Port Container Development Co., Ltd.
(DPCD), Dalian Port Jifa Logistics Co., Ltd. (Jifa Logistics) and Yingkou Port Group Co., Ltd.
(Yingkou Port Group). DPCD, Jifa Logistics and Yingkou Port Group are all majority-owned
subsidiaries of the related party, Liaoning Port Group Co., Ltd. (Liaoning Port Group) Limited. In
November 2023, YPIT and DPN completed the business registration changes in connection with the
Transaction. As a result, YPIT and DPN were no longer subsidiaries included in the Company’s
consolidated financial statements.
China Merchants Port Group Co., Ltd.
Board of Directors
Dated 2 April 2024
15
