CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
CONTENTS PAGES
THE CONSOLIDATED AND COMPANY'S BALANCE SHEETS 1-4
THE CONSOLIDATED AND COMPANY'S INCOME STATEMENTS 5-6
THE CONSOLIDATED AND COMPANY'S CASH FLOW STATEMENTS 7-8
THE CONSOLIDATED AND COMPANY'S STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY 9 - 12
NOTES TO THE FINANCIAL STATEMENTS 13 - 162
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2022
Consolidated Balance Sheet
RMB
Item Notes 30/6/2022 31/12/2021
Current Assets:
Cash and bank balances (VIII)1 14,171,964,195.08 12,772,349,406.77
Held-for-trading financial assets (VIII)2 5,272,909,312.13 6,921,831,502.55
Notes receivable (VIII)3 2,645,000.00 6,081,611.95
Accounts receivable (VIII)4 1,840,398,775.49 1,320,577,577.81
Receivables financing (VIII)5 191,399,515.52 238,429,402.71
Prepayments (VIII)6 66,013,401.35 51,606,794.20
Other receivables (VIII)7 2,234,309,527.16 696,276,595.87
Inventories (VIII)8 219,602,505.71 194,920,136.12
Assets held for sale (VIII)9 337,442,757.28 337,442,757.28
Non-current assets due within one year (VIII)10 134,710,787.73 102,356,461.97
Other current assets (VIII)11 137,978,273.63 339,684,297.41
Total current assets 24,609,374,051.08 22,981,556,544.64
Non-current Assets:
Long-term receivables (VIII)12 6,301,366,958.60 6,162,713,861.02
Long-term equity investments (VIII)13 74,541,201,708.16 70,353,451,824.52
Investments in other equity instruments (VIII)14 171,625,961.43 180,251,798.43
Other non-current financial assets (VIII)15 818,869,293.22 809,515,244.87
Investment properties (VIII)16 5,213,447,878.80 5,298,238,414.88
Fixed assets (VIII)17 31,388,137,617.06 31,710,513,230.29
Construction in progress (VIII)18 2,616,086,132.03 2,557,584,953.92
Right-of-use assets (VIII)19 9,106,596,039.35 8,743,077,542.19
Intangible assets (VIII)20 18,493,460,564.32 18,475,412,380.93
Development expenditure (VIII)21 62,087,161.02 82,391,225.85
Goodwill (VIII)22 6,299,993,214.67 6,024,160,942.07
Long-term prepaid expenses (VIII)23 961,872,568.04 975,994,541.52
Deferred tax assets (VIII)24 393,135,823.81 398,145,710.84
Other non-current assets (VIII)25 1,461,319,189.49 1,231,092,952.69
Total non-current assets 157,829,200,110.00 153,002,544,624.02
TOTAL ASSETS 182,438,574,161.08 175,984,101,168.66
-1-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2022
Consolidated Balance Sheet - continued
RMB
Item Notes 30/6/2022 31/12/2021
Current Liabilities:
Short-term borrowings (VIII)26 15,482,279,719.62 13,651,452,805.36
Notes payable (VIII)27 9,089,940.00 1,895,987.17
Accounts payable (VIII)28 711,116,965.55 843,820,438.51
Receipts in advance (VIII)29 27,105,756.89 9,313,166.01
Contract liabilities (VIII)30 225,350,974.85 196,784,525.26
Employee benefits payable (VIII)31 756,589,567.67 820,416,415.47
Taxes payable (VIII)32 1,143,491,598.23 2,162,719,251.68
Other payables (VIII)33 3,485,085,782.19 2,140,108,341.08
Non-current liabilities due within one year (VIII)34 2,813,987,163.97 8,268,209,284.17
Other current liabilities (VIII)35 5,163,575,748.06 2,158,497,775.85
Total current liabilities 29,817,673,217.03 30,253,217,990.56
Non-current Liabilities:
Long-term borrowings (VIII)36 7,577,041,256.64 7,144,839,870.89
Bonds payable (VIII)37 20,642,028,030.72 16,670,872,414.14
Including: Preferred shares - -
Perpetual bonds - -
Lease liabilities (VIII)38 1,060,180,377.44 1,055,194,906.09
Long-term payables (VIII)39 3,669,169,313.03 3,422,179,366.40
Long-term employee benefits payable (VIII)40 561,785,876.67 588,681,492.63
Provisions (VIII)41 31,464,238.16 24,247,302.42
Deferred income (VIII)42 1,053,313,962.43 1,075,957,884.91
Deferred tax liabilities (VIII)24 4,660,617,044.44 4,550,417,470.61
Other non-current liabilities (VIII)43 163,649,191.94 163,065,578.53
Total non-current liabilities 39,419,249,291.47 34,695,456,286.62
TOTAL LIABILITIES 69,236,922,508.50 64,948,674,277.18
SHAREHOLDERS' EQUITY:
Share capital (VIII)44 1,922,365,124.00 1,922,365,124.00
Capital reserve (VIII)45 23,846,734,297.13 23,592,702,758.70
Other comprehensive income (VIII)46 -916,335,049.74 -890,125,318.18
Special reserve (VIII)47 32,315,835.92 9,184,429.12
Surplus reserve (VIII)48 961,182,562.00 961,182,562.00
Unappropriated profit (VIII)49 15,368,637,097.70 14,205,879,106.49
Total shareholders' equity attributable to
41,214,899,867.01 39,801,188,662.13
equity holders of the Company
Total minority interests 71,986,751,785.57 71,234,238,229.35
TOTAL SHAREHOLDERS' EQUITY 113,201,651,652.58 111,035,426,891.48
TOTAL LIABILITIES AND
182,438,574,161.08 175,984,101,168.66
SHAREHOLDERS' EQUITY
The accompanying notes form part of the financial statements.
The financial statements were signed by the following:
Wang Xiufeng Tu Xiaoping Huang Shengchao
_____________________ _____________________ ___________________________
Legal Representative Chief Financial Officer Head of Accounting Department
-2-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2022
Balance Sheet of the Company
RMB
Item Notes 30/6/2022 31/12/2021
Current Assets:
Cash and bank balances 5,031,443,283.96 2,913,761,567.31
Held-for-trading financial assets 5,021,434,305.48 4,355,978,026.30
Prepayments - -
Other receivables (XVII)1 1,530,323,385.88 1,256,742,971.01
Other current assets 3,120,888.85 3,799,849.79
Total current assets 11,586,321,864.17 8,530,282,414.41
Non-current Assets:
Long-term receivables 8,855,665.09 8,447,395.74
Long-term equity investments (XVII)2 38,790,205,527.56 38,632,541,293.73
Investments in other equity instruments 145,397,984.69 154,017,984.69
Other non-current financial assets 50,200,000.00 -
Fixed assets 2,709,434.31 1,684,450.22
Construction in progress 8,583,349.46 8,714,886.98
Intangible assets 52,448,664.17 53,886,017.45
Long-term prepaid expenses 1,048,440.59 1,223,180.69
Deferred tax assets 1,846,793.34 1,846,793.34
Other non-current assets 50,246,299.06 -
Total non-current assets 39,111,542,158.27 38,862,362,002.84
TOTAL ASSETS 50,697,864,022.44 47,392,644,417.25
-3-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2022
Balance Sheet of the Company - continued
RMB
Item Notes 30/6/2022 31/12/2021
Current liabilities:
Short-term borrowings 6,605,668,055.55 6,606,500,555.58
Employee benefits payable 33,178,269.86 36,196,999.78
Taxes payable 266,100.89 166,072,684.93
Other payables 895,210,336.23 1,136,030,015.25
Non-current liabilities due within one year 83,430,113.00 82,735,342.45
Other current liabilities 5,019,617,260.31 2,007,042,725.30
Total current liabilities 12,637,370,135.84 10,034,578,323.29
Non-current Liabilities:
Long-term borrowings 997,000,000.00 -
Bonds payable 4,000,000,000.00 4,000,000,000.00
Provisions - 1,003,584.24
Deferred tax liabilities 44,754,891.55 44,515,821.76
Total non-current liabilities 5,041,754,891.55 4,045,519,406.00
TOTAL LIABILITIES 17,679,125,027.39 14,080,097,729.29
SHAREHOLDERS' EQUITY
Share capital 1,922,365,124.00 1,922,365,124.00
Capital reserve 27,600,222,792.28 27,594,079,596.13
Other comprehensive income 98,398,294.82 105,412,294.52
Surplus reserve 961,182,562.00 961,182,562.00
Unappropriated profit 2,436,570,221.95 2,729,507,111.31
TOTAL SHAREHOLDERS' EQUITY 33,018,738,995.05 33,312,546,687.96
TOTAL LIABILITIES AND SHAREHOLDERS'
50,697,864,022.44 47,392,644,417.25
EQUITY
The accompanying notes form part of the financial statements.
-4-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Consolidated Income Statement
RMB
Amount incurred in Amount incurred in
Item Notes
the current period the previous period
I. Operating income (VIII)50 8,150,462,367.19 7,339,942,862.26
Less: Operating costs (VIII)50 4,637,368,881.65 4,198,451,164.27
Taxes and levies (VIII)51 135,514,540.07 87,671,634.48
Administrative expenses (VIII)52 812,502,660.55 766,369,973.37
Research and development expenses 114,833,178.50 98,344,411.25
Financial expenses (VIII)53 1,351,945,047.67 730,109,013.88
Including: Interest expenses 1,140,997,429.67 892,510,549.76
Interest income 212,820,789.37 183,191,011.93
Add: Other income (VIII)54 87,480,824.65 305,982,258.62
Investment income (VIII)55 4,355,273,765.49 3,609,743,591.59
Including: Income from investments in
(VIII)55 4,211,173,480.05 3,557,359,417.25
associates and joint ventures
Gains(Losses) from changes in fair value (VIII)56 -38,026,112.58 -488,532,866.45
Gains(Losses) on impairment of credit (VIII)57 2,882,412.61 -2,586,332.20
Gains(Losses) on impairment of assets - -
Gains(Losses) on disposal of assets (VIII)58 -207,276.37 9,432,717.92
II. Operating profit 5,505,701,672.55 4,893,036,034.49
Add: Non-operating income (VIII)59 20,192,926.39 28,987,669.73
Less: Non-operating expenses (VIII)60 20,267,458.29 14,323,864.27
III. Gross profit 5,505,627,140.65 4,907,699,839.95
Less: Income tax expenses (VIII)61 625,643,717.42 643,438,595.12
IV. Net profit 4,879,983,423.23 4,264,261,244.83
(I) Categorization by continuity of operation
1. Net profit of continued operation 4,879,983,423.23 4,264,261,244.83
2. Net profit of discontinued operation - -
(II) Categorization by attribution of ownership
1. Net profit attributable to shareholders of the Company 1,981,861,324.62 1,677,035,346.17
2. Profit or loss attributable to minority shareholders 2,898,122,098.61 2,587,225,898.66
V. Amount of other comprehensive net income after tax (VIII)46 441,729,116.27 -314,186,364.19
Amount of other comprehensive net income after tax
-18,696,061.65 -89,607,300.16
attributable to equity holders of the Company
(I) Other comprehensive income that will not be reclassified
-76,728,084.39 228,315.37
to profit or loss
1. Changes as a result of remeasurement of the net defined
- -
benefit plan
2. Other comprehensive income under the equity method
-78,616,754.21 -184,184.63
that will not be reclassified to profit or loss
3. Fair value changes of investments in other equity
1,888,669.82 412,500.00
instruments
(II) Other comprehensive income that will be reclassified
58,032,022.74 -89,835,615.53
subsequently to profit or loss
1. Other comprehensive income under the equity method
-117,324,901.44 -23,133,723.56
that will be reclassified to profit or loss
2. Translation differences of financial statements denominated
175,356,924.18 -66,701,891.97
in foreign currencies
Amount of other comprehensive net income after tax
460,425,177.92 -224,579,064.03
attributable to minority shareholders
VI. Total comprehensive income attributable to: 5,321,712,539.50 3,950,074,880.64
Shareholders of the Company 1,963,165,262.97 1,587,428,046.01
Minority shareholders 3,358,547,276.53 2,362,646,834.63
VII. Earnings per share
(I) Basic earnings per share 1.03 0.87
(II) Diluted earnings per share 1.03 0.87
The accompanying notes form part of the financial statements.
-5-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Income Statement of the Company
RMB
Amount incurred Amount incurred
Item Notes in the current in the previous
period period
I. Operating income (XVII)3 - 471,974.86
Less: Operating costs (XVII)3 1,132,979.70 1,132,979.75
Taxes and levies 152,914.98 -
Administrative expenses 74,398,609.92 62,053,671.27
Financial expenses 176,214,861.88 80,011,675.00
Including: Interest expenses 220,415,407.89 103,671,335.55
Interest income 51,040,811.33 26,740,035.75
Add: Other income 366,921.86 122,335.30
Investment income (XVII)4 762,872,589.73 1,005,277,395.49
Including: Income from investments in associates
(XVII)4 136,885,266.28 86,382,211.38
and joint ventures
Gains(Losses) from changes in fair value 8,456,279.18 -
II. Operating profit 519,796,424.29 862,673,379.63
Add: Non-operating income 34,957.54 424,555.92
Less: Non-operating expenses 18.84 -
III. Gross profit 519,831,362.99 863,097,935.55
Less: Income tax expenses -6,336,709.00 130,368,128.15
IV. Net profit 526,168,071.99 732,729,807.40
V. Amount of other comprehensive net income after tax 498,042.27 412,500.00
(I) Other comprehensive income that will not be
1,914,691.56 412,500.00
reclassified subsequently to profit or loss
1. Changes as a result of remeasurement of the net defined
- -
benefit plan
2. Other comprehensive income under the equity method
27,649.59 -
that will not be reclassified to profit or loss
3. Fair value changes of investments in other equity
1,887,041.97 412,500.00
instruments
(II) Other comprehensive income that will be reclassified
-1,416,649.29 -
to profit or loss
1. Other comprehensive income under the equity method
-1,416,649.29 -
that will be reclassified to profit or loss
2. Translation differences of financial statements
- -
denominated in foreign currencies
VI. Total comprehensive income 526,666,114.26 733,142,307.40
The accompanying notes form part of the financial statements.
-6-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Consolidated Cash Flow Statement
RMB
Amount incurred Amount incurred in
Item Notes in the current the previous period
period (Restated)
I. Cash Flows from Operating Activities
Cash received from sales of goods and rendering of
7,946,044,540.63 6,999,276,674.02
services
Refunds of taxes 185,224,132.63 85,780,705.21
Other cash received relating to operating activities (VIII)64(1) 448,659,531.56 603,526,364.98
Sub-total of cash inflows 8,579,928,204.82 7,688,583,744.21
Cash paid for goods purchased or services received 2,240,288,101.95 1,903,206,790.90
Cash paid to and on behalf of employees 1,879,756,634.11 1,709,301,832.87
Tax payments 827,509,481.12 733,071,668.17
Cash paid relating to other operating activities (VIII)64(2) 411,122,810.55 408,043,044.31
Sub-total of cash outflows 5,358,677,027.73 4,753,623,336.25
Net Cash Flows from Operating Activities (VIII)65(1) 3,221,251,177.09 2,934,960,407.96
II. Cash Flows from Investing Activities
Cash received from disposal and recovery of investments 23,921,644,162.50 3,630,000,000.00
Cash received from investment income 733,820,028.32 1,520,388,115.39
Net cash received from disposal of fixed assets, intangible
1,250,786.03 21,022,377.14
assets and other long-term assets
Other cash received relating to investing activities (VIII)64(3) 94,566,178.69 355,653,171.58
Sub-total of cash inflows 24,751,281,155.54 5,527,063,664.11
Cash paid to acquire or construct fixed assets, intangible
950,600,127.64 1,124,649,979.59
assets and other long-term assets
Cash paid to acquire investments 24,696,618,396.78 4,337,300,451.86
Other cash paid relating to investing activities (VIII)64(4) 967,712,734.42 11,284,899.93
Sub-total of cash outflows 26,614,931,258.84 5,473,235,331.38
Net Cash Flows from Investing Activities -1,863,650,103.30 53,828,332.73
III. Cash Flows from Financing Activities
Cash received from borrowings 14,789,220,290.65 3,694,414,917.83
Cash received from issue of bonds 7,000,000,000.00 4,800,000,000.00
Other cash received relating to financing activities (VIII)64(5) 52,897,609.21 -
Sub-total of cash inflows 21,842,117,899.86 8,494,414,917.83
Repayments of borrowings 19,426,456,859.41 12,892,108,917.15
Dividends paid, profit distributed or interest paid 2,063,908,899.16 942,876,415.60
Including: Dividends paid, profit distributed to minority
298,311,895.58 -
shareholders.
Other cash paid relating to financing activities (VIII)64(6) 224,977,119.04 172,761,586.81
Sub-total of cash outflows 21,715,342,877.61 14,007,746,919.56
Net Cash Flows from Financing Activities 126,775,022.25 -5,513,332,001.73
IV. Effect of Foreign Exchange Rate Changes on Cash and
-88,210,579.74 -26,551,995.94
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 1,396,165,516.30 -2,551,095,256.98
Add: Opening Balance of Cash and Cash Equivalents (VIII)65(2) 12,727,355,238.36 11,898,618,327.29
VI. Closing Balance of Cash and Cash Equivalents (VIII)65(2) 14,123,520,754.66 9,347,523,070.31
The accompanying notes form part of the financial statements.
-7-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Cash Flow Statement of the Company
RMB
Amount incurred Amount incurred
Item Notes in the current in the previous
period period
I. Cash Flows from Operating Activities
Refunds of taxes 1,181,089.86 -
Other cash received relating to operating activities 33,183,150.38 218,034,986.32
Sub-total of cash inflows 34,364,240.24 218,034,986.32
Cash paid for goods purchased and services received 57,280.00 40,000.00
Cash paid to and on behalf of employees 50,444,029.40 32,829,622.92
Tax payments 161,506,258.88 209,567,259.29
Other cash paid relating to operating activities 35,013,421.74 33,094,186.67
Sub-total of cash outflows 247,020,990.02 275,531,068.88
Net Cash Flows from Operating Activities -212,656,749.78 -57,496,082.56
II. Cash Flows from Investing Activities:
Cash received from disposals and recovery of investments 20,036,632,041.97 2,480,000,000.00
Cash received from investments income 630,452,904.29 293,098,915.83
Other cash received relating to investing activities 468.00 -
Sub-total of cash inflows 20,667,085,414.26 2,773,098,915.83
Cash paid to acquire or construct fixed assets, intangible
1,566,408.28 1,732,237.00
assets and other long-term assets
Cash paid for investments 21,026,322,904.70 2,386,523,799.86
Other cash paid relating to investing activities 180,004,179.30 198,583,388.96
Sub-total of cash outflows 21,207,893,492.28 2,586,839,425.82
Net Cash Flows from Investing Activities -540,808,078.02 186,259,490.01
III. Cash Flows from Financing Activities:
Cash received from borrowings 3,126,668,674.85 5,797,840,000.00
Cash received from issue of bonds 7,000,000,000.00 -
Cash received relating to financing activities 2,897,609.21 25,000,000.00
Sub-total of cash inflows 10,129,566,284.06 5,822,840,000.00
Repayments of borrowings 6,217,408,504.85 5,381,742,457.36
Dividends paid, profit distributed or interest paid 1,038,085,659.53 89,771,518.67
Other cash paid relating to financing activities 3,282,168.31 982,254.76
Sub-total of cash outflows 7,258,776,332.69 5,472,496,230.79
Net Cash Flows from Financing Activities 2,870,789,951.37 350,343,769.21
IV. Effect of Foreign Exchange Rate Changes on Cash and
356,593.08 -65,793.07
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 2,117,681,716.65 479,041,383.59
Add: Opening balance of Cash and Cash Equivalents 2,913,761,567.31 753,590,556.77
VI. Closing Balance of Cash and Cash Equivalents 5,031,443,283.96 1,232,631,940.36
The accompanying notes form part of the financial statements.
-8-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Consolidated Statement of Changes in Shareholders' Equity
RMB
Current Period
Attributable to shareholders of the Company
Item Other Total shareholders'
Unappropriated Minority interests
Share capital Capital reserve comprehensive Special reserve Surplus reserve equity
profit
income
I. Closing balance of the preceding year 1,922,365,124.00 23,592,702,758.70 -890,125,318.18 9,184,429.12 961,182,562.00 14,205,879,106.49 71,234,238,229.35 111,035,426,891.48
Add: Changes in accounting policies - - - - - - - -
Corrections of prior period errors - - - - - - - -
Business combination involving
- - - - - - - -
enterprises under common control
Others - - - - - - - -
II. Opening balance of the period 1,922,365,124.00 23,592,702,758.70 -890,125,318.18 9,184,429.12 961,182,562.00 14,205,879,106.49 71,234,238,229.35 111,035,426,891.48
III. Changes for the period - 254,031,538.43 -26,209,731.56 23,131,406.80 - 1,162,757,991.21 752,513,556.22 2,166,224,761.10
(I) Total comprehensive income - - -18,696,061.65 - - 1,981,861,324.62 3,358,547,276.53 5,321,712,539.50
(II) Owners' contributions and
- 254,031,538.43 - - - - -514,463,334.99 -260,431,796.56
reduction in capital
1. Ordinary shares contributed by
- - - - - - - -
shareholders
2. Capital contribution from holders of
- - - - - - - -
other equity instruments
3. Share-based payment recognized in
- 3,448,276.71 - - - - 2,516,367.90 5,964,644.61
shareholders' equity
4. Business combination involving
- - - - - - - -
enterprises under common control
5. Others - 250,583,261.72 - - - - -516,979,702.89 -266,396,441.17
(III) Profit distribution - - - - - -826,617,003.32 -2,118,639,819.08 -2,945,256,822.40
1. Transfer to surplus reserve - - - - - - - -
2. Transfer to general reserve - - - - - - - -
3. Distributions to shareholders - - - - - -826,617,003.32 -2,025,521,443.67 -2,852,138,446.99
4. Others - - - - - - -93,118,375.41 -93,118,375.41
(IV) Transfers within shareholders' equity - - -7,513,669.91 - - 7,513,669.91 - -
1. Capitalization of capital reserve - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - -
3. Loss made up by surplus reserve - - - - - - - -
4. Others - - -7,513,669.91 - - 7,513,669.91 - -
(V) Special reserve - - - 23,131,406.80 - - 27,069,433.76 50,200,840.56
1. Withdrawn in the period - - - 32,027,158.31 - - 37,984,383.50 70,011,541.81
2. Utilized in the period - - - -8,895,751.51 - - -10,914,949.74 -19,810,701.25
(VI) Others - - - - - - - -
IV. Closing balance of the period 1,922,365,124.00 23,846,734,297.13 -916,335,049.74 32,315,835.92 961,182,562.00 15,368,637,097.70 71,986,751,785.57 113,201,651,652.58
-9-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
Prior Period
Attributable to shareholders of the Company
Item Other Total shareholders'
Unappropriated Minority interests
Share capital Capital reserve comprehensive Special reserve Surplus reserve equity
profit
income
I. Closing balance of the preceding year 1,922,365,124.00 22,805,069,335.49 -826,697,303.06 10,201,178.30 890,690,322.28 12,316,177,395.17 68,559,161,478.89 105,676,967,531.07
Add: Changes in accounting policies - - - - - - - -
Corrections of prior period errors - - - - - - - -
Business combination involving
- - - - - - - -
enterprises under common control
Others - 34,528,989.07 - - - 12,942,703.53 77,217,389.86 124,689,082.46
II. Opening balance of the period 1,922,365,124.00 22,839,598,324.56 -826,697,303.06 10,201,178.30 890,690,322.28 12,329,120,098.70 68,636,378,868.75 105,801,656,613.53
III. Changes for the period - 116,324,695.54 -90,101,219.80 5,289,542.94 - 946,536,599.05 1,496,540,433.72 2,474,590,051.45
(I) Total comprehensive income - - -89,607,300.16 - - 1,677,035,346.17 2,362,646,834.63 3,950,074,880.64
(II) Owners' contributions and
- 116,324,695.54 -493,919.64 - - - 233,353,705.33 349,184,481.23
reduction in capital
1. Ordinary shares contributed by
- - - - - - - -
shareholders
2. Capital contribution from holders of
- - - - - - - -
other equity instruments
3. Share-based payment recognized in
- 5,859,913.77 - - - - 4,913,360.76 10,773,274.53
shareholders' equity
4. Business combination involving
- -38,392,129.42 - - - - - -38,392,129.42
enterprises under common control
5. Others - 148,856,911.19 -493,919.64 - - - 228,440,344.57 376,803,336.12
(III) Profit distribution - - - - - -730,498,747.12 -1,105,762,332.14 -1,836,261,079.26
1. Transfer to surplus reserve - - - - - - - -
2. Transfer to general reserve - - - - - - - -
3. Distributions to shareholders - - - - - -730,498,747.12 -1,012,637,696.25 -1,743,136,443.37
4. Others - - - - - - -93,124,635.89 -93,124,635.89
(IV) Transfers within shareholders' equity - - - -1,815,265.74 - - - -1,815,265.74
1. Capitalization of capital reserve - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - -
3. Loss made up by surplus reserve - - - - - - - -
4. Others - - - -1,815,265.74 - - - -1,815,265.74
(V) Special reserve - - - 7,104,808.68 - - 6,302,225.90 13,407,034.58
1. Withdrawn in the period - - - 23,456,646.73 - - 28,184,953.20 51,641,599.93
2. Utilized in the period - - - -16,351,838.05 - - -21,882,727.30 -38,234,565.35
(VI) Others - - - - - - - -
IV. Closing balance of the period 1,922,365,124.00 22,955,923,020.10 -916,798,522.86 15,490,721.24 890,690,322.28 13,275,656,697.75 70,132,919,302.47 108,276,246,664.98
The accompanying notes form part of the financial statements.
- 10 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Statement of Changes in Shareholders' Equity of the Company
RMB
Current Period
Item Other comprehensive Total shareholders'
Share capital Capital reserve Special reserve Surplus reserve Unappropriated profit
income equity
I. Closing balance of the preceding year 1,922,365,124.00 27,594,079,596.13 105,412,294.52 - 961,182,562.00 2,729,507,111.31 33,312,546,687.96
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the period 1,922,365,124.00 27,594,079,596.13 105,412,294.52 - 961,182,562.00 2,729,507,111.31 33,312,546,687.96
III. Changes for the period - 6,143,196.15 -7,013,999.70 - - - 292,936,889.36 -293,807,692.91
(I) Total comprehensive income - - 498,042.27 - - 526,168,071.99 526,666,114.26
(II) Owners' contributions and reduction
- 6,143,196.15 - - - - 6,143,196.15
in capital
1. Ordinary shares contributed by
- - - - - - -
shareholders
2. Share-based payment recognized in
- 4,805,671.45 - - - - 4,805,671.45
shareholders' equity
3. Others - 1,337,524.70 - - - 1,337,524.70
(III) Profit distribution - - - - - -826,617,003.32 -826,617,003.32
1. Transfer to surplus reserve - - - - - - -
2. Transfer to general reserve - - - - - - -
3. Distributions to shareholders - - - - - -826,617,003.32 -826,617,003.32
4. Others - - - - - - -
(IV) Transfers within shareholders' equity - - -7,512,041.97 - - 7,512,041.97 -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss made up by surplus reserve - - - - - - -
4. Others - - -7,512,041.97 - - 7,512,041.97 -
(V) Special reserve - - - - - - -
1. Withdrawn in the period - - - - - - -
2. Utilized in the period - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the period 1,922,365,124.00 27,600,222,792.28 98,398,294.82 - 961,182,562.00 2,436,570,221.95 33,018,738,995.05
- 11 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
Statement of Changes in Shareholders' Equity of the Company - continued
RMB
Prior Period
Item Other comprehensive Total shareholders'
Share capital Capital reserve Special reserve Surplus reserve Unappropriated profit
income equity
I. Closing balance of the preceding year 1,922,365,124.00 27,591,847,402.73 105,536,222.50 - 890,690,322.28 2,442,510,245.26 32,952,949,316.77
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the period 1,922,365,124.00 27,591,847,402.73 105,536,222.50 - 890,690,322.28 2,442,510,245.26 32,952,949,316.77
III. Changes for the period - 8,831,939.94 412,500.00 - - 2,231,060.28 11,475,500.22
(I) Total comprehensive income - - 412,500.00 - - 732,729,807.40 733,142,307.40
(II) Owners' contributions and reduction
- 8,831,939.94 - - - - 8,831,939.94
in capital
1. Ordinary shares contributed by
- - - - - - -
shareholders
2. Share-based payment recognized in
- 8,831,939.94 - - - - 8,831,939.94
shareholders' equity
3. Others - - - - - - -
(III) Profit distribution - - - - - -730,498,747.12 -730,498,747.12
1. Transfer to surplus reserve - - - - - - -
2. Transfer to general reserve - - - - - - -
3. Distributions to shareholders - - - - - -730,498,747.12 -730,498,747.12
4. Others - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss made up by surplus reserve - - - - - - -
4. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Withdrawn in the period - - - - - - -
2. Utilized in the period - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the period 1,922,365,124.00 27,600,679,342.67 105,948,722.50 - 890,690,322.28 2,444,741,305.54 32,964,424,816.99
The accompanying notes form part of the financial statements.
- 12 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Group Company Limited (hereinafter referred to as the "Company") was a
stock limited company incorporated in Shenzhen, Guangdong Province, on 16 January 1993.
The headquarter of the Company is located in Shenzhen, Guangdong Province. The Company and
its subsidiaries (collectively the "Group") are principally engaged in the rendering of port service,
bonded logistics service and other businesses such as property development and investment.
The Company's and consolidated financial statements have been approved by the Board of
Directors on 29 August 2022.
See Notes (X) "Equity in Other Entities" for details of the scope of consolidated financial
statements in the current year. See Note (IX) "Changes in Scope of Consolidation" for details of
changes in the scope of consolidated financial statements in the current period.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") issued by
the Ministry of Finance ("MoF"). In addition, the Group has disclosed relevant financial
information in accordance with Information Disclosure and Presentation Rules for Companies
Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in
2014).
Going concern
As at 30 June 2022, the Group had total current liabilities in excess of total current assets of RMB
5,208,299,165.95. On 30 June 2022, the Group had available and unused line of credit amounting
to RMB 62,195,186,155.77, which is greater than the balance of the net current liabilities. The
Group can obtain financial support from the available line of credit when needed. Therefore, the
financial statements have been prepared on a going concern basis.
(III) STATEMENT OF COMPLIANCE WITH THE ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and
present truly and completely, the Company's and consolidated financial position as of 30 June
2022, and the Company's and consolidated results of operations and cash flows for the year then
ended.
- 13 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31
December.
2. Operating cycle
An operating cycle refers to the period since when an enterprise purchases assets for processing
purpose till the realization of those assets in cash or cash equivalents. The Group is principally
engaged in the rendering of port service, bonded logistics service and other businesses such as
property development and investment with one year being an operating cycle.
3. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its domestic subsidiaries operate. Therefore, the Company and its domestic subsidiaries
choose RMB as their functional currency. The Company's subsidiaries choose their functional
currency on the basis of the primary economic environment in which they operate. The Company
adopts RMB to prepare its financial statements.
4. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments
which are measured at fair value, the Group adopts the historical cost as the principle of
measurement of the financial statements. Upon being restructured into a stock company, the fixed
assets and intangible assets initially contributed by the state-owned shareholders are recognized
based on the valuation amounts confirmed by the state-owned assets administration department.
Where assets are impaired, provisions for asset impairment are made in accordance with the
relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount
of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the
time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or
the contractual amounts for assuming the present obligation, or, at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using valuation technique. Fair value measurement
and/or disclosure in the financial statements are determined according to the above basis.
A fair value measurement of a non-financial asset takes into account a market participant's ability
to generate economic benefits by using the assets in its highest and best use or by selling it to
another market participant that would use the asset in its highest and best use.
- 14 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
4. Basis of accounting and principle of measurement - continued
For financial assets which are transferred at transaction price upon initial recognition and a
valuation technique that unobservable input is to be used to measure fair value in subsequent
periods, the valuation technique is calibrated so that at initial recognition the results of the
valuation technique equals the transaction price.
Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the
inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are
observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
5. Business combinations
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same
party or parties before and after the combination.
- 15 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. Business combinations - continued
5.2 Business combinations not involving enterprises under common control and goodwill - continued
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets
given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree. Where a business combination not involving enterprises under common
control is achieved in stages that involve multiple transactions, the cost of combination is the sum
of the consideration paid at the acquisition date and the fair value at the acquisition date of the
acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of
auditing, legal services, valuation and consultancy services, etc.) and other administrative
expenses attributable to the business combination are recognized in profit or loss in the periods
when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.
When a business combination contract provides for the acquirer's recovery of consideration
previously paid contingent on one or multiple future event(s), the Group recognises the contingent
consideration provided in the contract as an asset, as part of the consideration transferred in the
business combination, and includes it in the cost of business combination at the fair value at the
acquisition date. Within 12 months after the acquisition, where the contingent consideration needs
to be adjusted as new or further evidences are obtained in respect of the circumstances existed at
the acquisition date, the adjustment shall be recognised and the amount originally recognised in
goodwill or non-operating income shall be adjusted. A change in or adjustment to the contingent
consideration under other circumstances shall be accounted for in accordance with Accounting
Standard for Business Enterprise No. 22 - Financial Instruments: Recognition and Measurement
and Accounting Standard for Business Enterprises No. 13 - Contingencies. Any changes or
adjustments are included in profit or loss for the current period.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is
measured at cost on initial recognition. Where the cost of combination is less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the
measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment, the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable
net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the
current period.
- 16 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. Business combinations - continued
5.2 Business combinations not involving enterprises under common control and goodwill - continued
If either the fair values of identifiable assets, liabilities and contingent liabilities acquired in a
combination or the cost of business combination can be determined only provisionally by the end
of the period in which the business combination was effected, the acquirer recognises and
measures the combination using those provisional values. Any adjustments to those provisional
values within twelve months after the acquisition date are treated as if they had been recognised
and measured on the acquisition date.
Goodwill arising on a business combination is measured at cost less accumulated impairment
losses, and is presented separately in the consolidated financial statements.
For the purpose of impairment testing, goodwill is considered together with the related assets
groups, i.e., goodwill is reasonably allocated to the related assets groups or each of assets groups
expected to benefit from the synergies of the combination. In testing an assets group with
goodwill for impairment, an impairment loss is recognized if the recoverable amount of the assets
group or sets of assets groups (including goodwill) is less than its carrying amount. The
impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to
such assets group or sets of assets groups, and then to the other assets of the group pro-rata basis
on the basis of the carrying amount of each asset (other than goodwill) in the group.
Recoverable amount is the higher of the fair value of an asset less cost of disposal and the present
value of the asset’s estimated future cash flows.
The impairment loss of goodwill is recognised in profit or loss for the period and does not reverse
in subsequent periods.
6. Consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control. Control exists when the investor has power over the investee; is exposed, or has rights, to
variable returns from its involvement with the investee; and has the ability to use its power over
the investee to affect its returns. The Group reassesses whether or not it controls an investee if
facts and circumstances indicate that there are changes of the above elements of the definition of
control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiaries and
ceases when the Group loses control of the subsidiary.
For a subsidiary already disposed of by the Group, the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated statement of cash flows, as appropriate.
- 17 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Consolidated financial statements - continued
For subsidiaries acquired through a business combination involving enterprises not under
common control, the operating results and cash flows from the acquisition date (the date when
control is obtained) are included in the consolidated income statement and consolidated statement
of cash flows, as appropriate.
No matter when the business combination occurs in the reporting period, subsidiaries acquired
through a business combination involving enterprises under common control or the party being
absorbed under merger by absorption are included in the Group's scope of consolidation as if they
had been included in the scope of consolidation from the date when they first came under the
common control of the ultimate controlling party. Their operating results and cash flows from the
date when they first came under the common control of the ultimate controlling party are included
in the consolidated income statement and consolidated statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.
Where the accounting policies and accounting periods adopted by subsidiaries are inconsistent
with those of the Company, appropriate adjustments are made to the subsidiaries' financial
statements in accordance with the accounting policies of the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet under
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable
to minority interests is presented as "minority interests" in the consolidated income statement
under the "net profit" line item. The portion of comprehensive income of subsidiaries for the
period attributable to minority interests is presented as "total comprehensive income attributable
to minority shareholders" under the "total comprehensive income" in the consolidated income
statement.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the
subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the
loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts
of the Company's interests and minority interests are adjusted to reflect the changes in their
relative interests in the subsidiary. The difference between the amount by which the minority
interests are adjusted and the fair value of the consideration paid or received is adjusted to capital
reserve. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted
against retained earnings.
- 18 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Consolidated financial statements - continued
For the stepwise acquisition of equity interest till acquiring control after a few transactions and
leading to business combination not involving enterprises under common control, this should be
dealt with based on whether this belongs to 'package deal': if it belongs to 'package deal',
transactions will be dealt as transactions to acquire control. If it does not belong to 'package deal',
transactions to acquire control on acquisition date will be under accounting treatment, the fair
value of acquirees' shares held before acquisition date will be revalued, and the difference
between fair value and book value will be recognized in profit or loss of the current period; if
acquirees' shares held before acquisition date involve in changes of other comprehensive income
and other equity of owners under equity method, this will be transferred to income of acquisition
date.
When the Company loses control over a subsidiary due to disposal of equity investment or other
reasons, any retained interest is re-measured at its fair value at the date when control is lost. The
difference between (i) the aggregate of the consideration received on disposal and the fair value of
any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated
from the acquisition date according to the original proportion of ownership interests is recognized
as investment income in the period in which control is lost, and the goodwill is offset accordingly.
Other comprehensive income associated with investment in the former subsidiary is reclassified to
investment income in the period in which control is lost.
When the Company loses control of a subsidiary in two or more arrangements (transactions),
terms and conditions of the arrangements (transactions) and their economic effects are considered.
One or more of the following indicate that the Company shall account for the multiple
arrangements as a 'package deal': (i) they are entered into at the same time or in contemplation of
each other; (ii) they form a complete transaction designed to achieve an overall commercial
effect; (iii) the occurrence of one transaction is dependent on the occurrence of at least one other
transaction; (iv) one transaction alone is not economically justified, but it is economically justified
when considered together with other transactions. Where the transactions of disposal of equity
investments in a subsidiary until the loss of control are assessed as a package deal, these
transactions are accounted for as one transaction of disposal of a subsidiary with loss of control.
Before losing control, the difference of consideration received on disposal and the share of net
assets of the subsidiary continuously calculated from acquisition date is recognized as other
comprehensive income. When losing control, the cumulated other comprehensive income is
transferred to profit or loss of the period of losing control. If the transactions of disposal of equity
investments in a subsidiary are not assessed as a package deal, these transactions are accounted
for as unrelated transactions.
- 19 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Joint arrangements
Joint arrangement refers to the arrangement jointly controlled by two or more than two
participants. The Group's joint arrangements have the following characteristics: (1) all the
participants are restricted by the arrangement; (2) the arrangement is jointly controlled by two or
more than two participants. Any participant cannot control the arrangement separately and any
participant to the joint control of the arrangement can stop other participants or the group of
participants from the separate control over the arrangement.
Joint control refers to the joint control over an arrangement in accordance with relevant
agreements and relevant activities of the arrangement shall be decided after the unanimous
consent by participants sharing the controlling rights.
There are two types of joint arrangements - joint operations and joint ventures. A joint operation
is a joint arrangement whereby the parties that have joint control of the arrangement have rights to
the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the arrangement.
8. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term(generally due within 3 months since the acquisition date),
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
9. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies
9.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange
rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into functional currency
using the spot exchange rates at the balance sheet date. Exchange differences arising from the
differences between the spot exchange rates prevailing at the balance sheet date and those on
initial recognition or at the previous balance sheet date are recognized in profit or loss for the
period, except that (1) exchange differences related to a specific-purpose borrowing denominated
in foreign currency that qualify for capitalization are capitalized as part of the cost of the
qualifying asset during the capitalization period; (2) exchange differences related to hedging
instruments for the purpose of hedging against foreign currency risks are accounted for using
hedge accounting; (3) exchange differences arising from changes in the carrying amounts (other
than the amortised cost) of monetary items at fair value through other comprehensive income are
recognised as other comprehensive income.
- 20 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
9.1 Transactions denominated in foreign currencies - continued
When the consolidated financial statements include foreign operation(s), if there is foreign
currency monetary item constituting a net investment in a foreign operation, exchange difference
arising from changes in exchange rates are recognized as "exchange differences arising on
translation of financial statements denominated in foreign currencies " in other comprehensive
income, and in profit and loss for the period upon disposal of the foreign operation.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions; the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date the fair value is determined.
Difference between the re-translated functional currency amount and the original functional
currency amount is treated as changes in fair value (including changes of exchange rate) and is
recognized in profit and loss or as other comprehensive income.
9.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a
foreign operation are translated from the foreign currency into RMB using the following method:
assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the
balance sheet date; shareholders' equity items except for unappropriated profit are translated at the
spot exchange rates at the dates on which such items arose; all items in the income statement as
well as items reflecting the distribution of profits are translated at the average exchange rates of
the accounting period of the consolidated financial statements; the opening balance of
unappropriated profit is the translated closing balance of the previous year's unappropriated profit;
the closing balance of unappropriated profit is calculated and presented on the basis of each
translated income statement and profit distribution item. The difference between the translated
assets and the aggregate of liabilities and shareholders' equity items is recognized as other
comprehensive income and included in shareholders' equity.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign
subsidiary are translated at average exchange rate during the accounting period of consolidated
financial statements. The effect of exchange rate changes on cash and cash equivalents is regarded
as a reconciling item and presented separately in the cash flow statement as "effect of exchange
rate changes on cash and cash equivalents".
The closing balances and the comparative figures of previous year are presented at the translated
amounts in the previous year's financial statements.
- 21 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
9.2 Translation of financial statements denominated in foreign currencies - continued
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the
accumulated exchange differences arising on translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under other
comprehensive income, to profit or loss in the period in which the disposal occurs.
In case of a disposal of part equity investments or other reason leading to lower interest
percentage in foreign operations but does not result in the Group losing control over a foreign
operation, the exchange differences arising from the translation of foreign currency statements
related to this disposed part are re-attributed to minority interests and are not recognized in profit
and loss. For partial disposals of equity interests in foreign operations which are associates or
joint ventures, the proportionate share of the accumulated exchange differences arising on
translation of statements of foreign operations is reclassified to profit or loss.
10. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of a financial instrument.
All regular way purchases or sales of financial assets are recognized and derecognized on a trade
date basis.
Financial assets and financial liabilities are initially measured at fair value. For financial assets
and financial liabilities at fair value through profit or loss for the period, relevant transaction costs
are directly recognized in profit or loss; transaction costs relating to other categories of financial
assets and financial liabilities are included in the value initially recognized. For accounts
receivable and notes receivable recognized that do not contain a significant financing component
or a financing component included in the contracts less than one year which are not considered by
the Group, which are within the scope of Accounting Standard for Business Enterprises No.14 -
Revenue (hereinafter referred to as "revenue standards"), transaction prices defined in the
standards shall be adopted on initial recognition.
The effective interest method is a method that is used in the calculation of the amortized cost of a
financial asset or a financial liability and in the allocation of the interest income or interest
expense in profit or loss over the relevant period.
- 22 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the gross carrying amount of a financial
asset or to the amortized cost of a financial liability. When calculating the effective interest rate,
the Group estimates future cash flows by considering all the contractual terms of the financial
asset or financial liability (for example, prepayment, extension, call option or similar options) but
shall not consider the expected credit losses.
The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognized net of principal repaid, plus or less the cumulative amortized
amount arising from amortization of the difference between the amount initially recognized and
the amount at the maturity date using the effective interest method, net of cumulative credit loss
allowance (only applicable to financial assets).
10.1 Classification, recognition and measurement of financial assets
Subsequent to initial recognition, the Group's financial assets of various categories are
subsequently measured at amortized cost, at fair value through other comprehensive income or at
fair value through profit or loss.
If contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding, and the financial asset is
held within a business model whose objective is to hold financial assets in order to collect
contractual cash flows, such asset is classified into financial assets measured at amortized cost,
which include cash and bank balances, notes receivable, accounts receivable, other receivables,
debt investments, and long-term receivables and etc.
Financial assets that meet the following conditions are subsequently measured at fair value
through other comprehensive income ("FVTOCI"): the financial asset is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling; and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding. Accounts receivable and
notes receivable classified as FVTOCI at acquisition are presented as financing receivables, and
those whose period within one year (inclusive) upon acquisition are presented as other current
assets. Those whose period over one year upon acquisition are presented as other debt investment,
those will fall due within one year (inclusive) since the balance sheet date are presented as non-
current assets due within one year
- 23 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.1 Classification, recognition and measurement of financial assets - continued
On initial recognition, the Group may irrevocably designate non-trading equity instruments, other
than contingent consideration recognized through business combination not involving enterprises
under common control, as financial assets at FVTOCI on an individual basis. Such financial
assets at FVTOCI are presented as other equity instrument.
A financial asset is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of selling in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the
Group manages together and there is objective evidence that the Group has a recent actual
pattern of short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.
Financial assets measured at fair value through profit or loss ("FVTPL") include those classified
as financial assets at FVTPL and those designated as financial assets at FVTPL.
Any financial assets that does not qualify for amortized cost measurement or measurement
at FVTOCI or designated at FVTOCI are classified into financial assets at FVTPL.
Upon initial recognition, in order to eliminate or significantly reduce accounting mismatch,
the Group will irrevocably designated it as financial liabilities at FVTPL.
Financial assets at FVTPL assets other than derivative financial assets are presented as "held-for-
trading financial assets". Such financial assets at FVTPL which may fall due more than one year
(or without fixed term) since the balance sheet date and will be held more than one year are
presented as other non-current financial assets.
10.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using
the effective interest method. Gain or loss arising from impairment or derecognition is recognized
in profit or loss.
For financial assets measured at amortized cost, the Group recognizes interest income using
effective interest method. The Group calculates and recognizes interest income through book
value of financial assets multiplying effective interest, except for the following circumstances:
For purchased or originated credit-impaired financial assets with credit impairment, the
Group calculates and recognizes its interest income based on amortized cost of the financial
asset and the effective interest through credit adjustment since initial recognition.
- 24 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.1 Classification, recognition and measurement of financial assets - continued
10.1.2 Financial assets at FVTOCI
Impairment losses or gains related to financial assets at FVTOCI, interest income measured using
effective interest method and exchange gains or losses are recognized into profit or loss for the
current period, except for the above circumstances, changes in fair value of the financial assets are
included in other comprehensive income. Amounts charged to profit or loss for every period equal
to the amount charged to profit or loss as it is measured at amortized costs. When the financial
asset is derecognized, the cumulative gains or losses previously recognized in other
comprehensive income shall be removed from other comprehensive income and recognized in
profit or loss.
Changes in fair value of non-trading equity instrument investments designated as financial assets
at FVTOCI are recognized in other comprehensive income, and the cumulative gains or losses
previously recognized in other comprehensive income allocated to the part derecognized are
transferred and included in retained earnings. During the period in which the Group holds the
non-trading equity instruments, revenue from dividends is recognized in profit or loss for the
current period when (1) the Group has established the right of collecting dividends; (2) it is
probable that the associated economic benefits will flow to the Group; and (3) the amount of
dividends can be measured reliably.
10.1.3 Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value. Gain or loss arising from
changes in fair values and dividends and interests related to the financial assets are recognized in
profit or loss.
10.2 Impairment of financial instruments
The Group makes accounting treatment on impairment and recognizes loss allowance for
expected credit losses ("ECL") on financial assets measured at amortized cost, financial assets
classified as at FVTOCI, lease receivables, contract assets, loan commitments that are not
financial liabilities at FVTPL, financial liabilities not measured at FVTPL, financial guarantee
contracts arising from transfer of financial assets which does not satisfy derecognition criteria or
continuing involvement of transferred financial assets.
- 25 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial instruments - continued
The Group makes a loss allowance against amount of lifetime ECL of the contract assets, notes
receivable and accounts receivable arising from transactions adopting the Revenue Standard as
well as lease receivables arising from transactions adopting ASBE No. 21- Leases.
For other financial instrument, other than purchased or originated credit-impaired financial assets,
the Group assesses changes in credit risks of the relevant financial asset since initial recognition at
each balance sheet date. If the credit loss of the financial instrument has been significantly
increased since initial recognition, the Group will make a loss allowance at an amount of expected
credit loss during the whole life; if not, the Group will make a loss allowance for the financial
instrument at an amount in the future 12-month expected credit losses. Except for the financial
assets classified as at FVTOCI, increase in or reversal of credit loss allowance is included in profit
or loss as loss/gain on impairment. For the financial assets classified as at FVTOCI, the Group
recognizes credit loss allowance in other comprehensive income and recognizes the loss/gain on
impairment in profit or loss, while the Group does not decrease the carrying amount of such
financial assets in the balance sheet.
The Group has makes a loss allowance against amount of expected credit losses during the whole
life in the prior accounting period. However, at the balance sheet date, the credit risk on a
financial instrument has not increased significantly since initial recognition; the Group will
measure the loss allowance for that financial instrument at an amount in the future 12-month
expected credit losses. Reversed amount of loss allowance arising from such circumstances shall
be included in profit or loss as impairment gains.
10.2.1 Significant increase of credit risk
In assessing whether the credit risk has increased significantly since initial recognition, the Group
compares the risk of a default occurring on the financial instrument as at the reporting date with
the risk of a default occurring on the financial instrument as at the date of initial recognition. For
loan commitments and financial guarantee contracts, the date that the Group becomes a party to
the irrevocable commitment is considered to be the date of initial recognition in the application of
criteria related to the financial instrument for impairment.
- 26 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial instruments - continued
10.2.1 Significant increase of credit risk - continued
In particular, the following information is taken into account when assessing whether credit risk
has increased significantly:
(1) Significant changes in internal price indicators of credit risk as a result of a change in
credit risk.
(2) Other changes in the rates or terms of an existing financial instrument that would be
significantly different if the instrument was newly originated or issued at the balance sheet
date (such as more stringent covenants, increased amounts of collateral or guarantees, or
higher income coverage).
(3) Significant changes in external market indicators of credit risk for a particular financial
instrument or similar financial instruments with the same expected life. These indicators
include the credit spread, the credit swap prices for the borrower, the length of time or the
extent to which the fair value of a financial asset has been less than its amortized cost and
other market information related to the borrower, such as changes in the price of a
borrower's debt and equity instruments.
(4) Significant changes in actual or expected external credit rating for the financial
instruments.
(5) An actual or expected internal credit rating downgrade for the borrower.
(6) Adverse changes in business, financial or economic conditions that are expected to cause a
significant change in the debtor's ability to meet its debt obligations.
(7) An actual or expected significant change in the operating results of the debtor.
(8) Significant increases in credit risk on other financial instruments of the same borrower.
(9) Significant adverse change in the regulatory, economic, or technological environment of
the debtor.
(10) Significant changes in the value of the collateral supporting the obligation or in the quality
of third-party guarantees or credit enhancements, which are expected to reduce the debtor's
economic incentive to make scheduled contractual payments or to otherwise have an effect
on the probability of a default occurring.
(11) Significant changes in circumstances expected to reduce the debtor's economic incentive
to make scheduled contractual payments.
(12) Expected changes in the loan documentation including an expected breach of contract that
may lead to covenant waivers or amendments, interest payment holidays, interest rate
step-ups, requiring additional collateral or guarantees, or other changes to the contractual
framework of the financial instrument.
(13) Significant changes in the expected performance and behaviour of the debtor.
(14) Changes in the entity's credit management approach in relation to the financial instrument.
- 27 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial instruments - continued
10.2.1 Significant increase of credit risk - continued
The Group assumes that the credit risk on a financial instrument has not increased significantly
since initial recognition if the financial instrument is determined to have lower credit risk at the
balance sheet date. A financial instrument is determined to have lower credit risk if: i) it has a
lower risk of default, ii) the borrower has a strong capacity to meet its contractual cash flow
obligations in the near term and iii) adverse changes in economic and business conditions in the
longer term may, but will not necessarily, reduce the ability of the borrower to fulfil its
contractual cash flow obligations.
10.2.2 Credit-impaired financial assets
When the Group expected occurrence of one or more events which may cause adverse impact on
future cash flows of a financial asset, the financial asset will become a credit-impaired financial
assets. Objective evidence that a financial asset is impaired includes but not limited to the
following observable events:
(1) Significant financial difficulty of the issuer or debtor.
(2) A breach of contract by the debtor, such as a default or delinquency in interest or principal
payments.
(3) The creditor, for economic or legal reasons relating to the debtor's financial difficulty,
granting a concession to the debtor.
(4) It becoming probable that the debtor will enter bankruptcy or other financial reorganizations.
(5) The disappearance of an active market for that financial asset because of financial
difficulties of the issuer or the debtor.
(6) Purchase or originate a financial asset with a large scale of discount, which reflects facts
of credit loss incurred.
Based on the Group's management of the internal credit risk, when the information recommended
internally or obtained externally indicates that the debtors of the financial instruments are unable
to make the full reimbursement to the creditors including the Group (not considering any
guarantee obtained by the Group), the Group then considers there occurs the event of default.
- 28 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial instruments - continued
10.2.3 Determination of expected credit loss
Lease receivables are assessed for ECL individually by the Group. In addition, the Group uses
provision matrix to calculate ECL for notes receivable, accounts receivable, other receivables,
contract assets, debt investments and other debt investments based on a portfolio basis. The Group
classifies financial instruments into different groups based on common risk characteristics.
Common credit risk characteristics include credit risk rating, the date of initial recognition,
remaining contractual maturity, industry of borrower and geographical location of the borrower
etc.
The Group determines expected credit losses of relevant financial instruments using the following
methods:
For a financial asset, a credit loss shall be the present value of the difference between the
contractual cash flows that are due to the Group under the contract and the cash flows that
the Group expects to receive.
For a lease receivable, a credit loss shall be the present value of the difference between the
contractual cash flows that are due to the Group under the contract and the cash flows that
the Group expects to receive.
For undrawn loan commitments (refer to Note IV, 10.4.1.3 for the detail of accounting
policies), the ECL shall be the present value of the difference between the contractual cash
flows that are due to the Group if the holder of the loan commitments draws down the loan,
and the cash flows that the Group expects to receive if the loan is drawn down. The Group's
estimation of the ECL for loan commitments is consistent with its expectation of the loan
commitments drawn down.
For a financial guarantee contract (refer to Note IV, 10.4.1.3 for the detail of accounting
policies ), the expected losses is the present value of the expected payments to reimburse the
holder for a credit loss that it incurs less any amounts that the Group expects to receive from
the holder, the debtor or any other party.
For a financial asset with credit-impaired at the balance sheet date, but not purchased or
originated credit-impaired, a credit losses is the difference between the asset's gross carrying
amount and the present value of estimated future cash flows discounted at the financial
asset's original effective interest rate.
The factors reflected in methods of measurement of expected credit losses include an unbiased
and probability-weighted amount that is determined by evaluating a range of possible outcomes;
time value of money; reasonable and supportable information about past events, current
conditions and forecasts on future economic status at balance sheet date without unnecessary
additional costs or efforts.
- 29 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial instruments - continued
10.2.4 Write-down of financial assets
When the Group will no longer reasonably expect that the contractual cash flows of financial
assets can be collected in aggregate or in part, the Group will directly write down the carrying
amount of the financial asset, which constitutes derecognition of relevant financial assets.
10.3 Transfer of financial assets
The Group will derecognize a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred, the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset, and it retains control of the financial asset, the Group will recognize the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognize an
associated liability. The Group will measure relevant liabilities as follows:
For transferred financial assets carried at amortized cost, the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortized cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortized cost of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant
liabilities are not designated as financial liabilities at fair value through profit or loss.
For transferred financial assets carried at fair value, the carrying amount of relevant
financial liabilities is the carrying amount of financial assets transferred with continuing
involvement less fair value of the Group's retained rights (if the Group retains relevant rights
upon transfer of financial assets) with addition of fair value of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets).
Accordingly, the fair value of relevant rights and obligations shall be measured on an
individual basis.
- 30 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.3 Transfer of financial assets - continued
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the
difference between (1) the carrying amount of the financial asset transferred at the derecognition
date and (2) the sum of the consideration received from the transfer of the financial asset and the
derecognition amount corresponding to accumulated changes in fair value initially recorded in
other comprehensive income is recognized in profit or loss. For the non-tradable equity
instrument designated as financial assets at FVTOCI, cumulative gain or loss that has been
recognized in other comprehensive income should be removed from other comprehensive income
but be recognized in retained earnings.
For a part of transfer of a financial asset that satisfies the derecognition criteria, the carrying
amount of the transferred financial asset is allocated between the part that is derecognized and the
part that is continuously involved, based on the respective fair values of those parts on transfer
date. The difference between (1) the sum of the consideration received for the part derecognized
and any cumulative gain or loss allocated to the part derecognized which has been previously
recognized in other comprehensive income; and (2) the carrying amount allocated to the part
derecognized on derecognition date; is recognized in profit or loss. For the non-tradable equity
instrument designated as financial assets at FVTOCI, cumulative gain or loss that has been
recognized in other comprehensive income should be removed from other comprehensive income
but be recognized in retained earnings.
For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria, the
Group will continuously recognize the transferred financial asset in its entirety. Considerations
received due to transfer of assets should be recognized as a financial liability upon receipts.
10.4 Classification of financial liabilities and equity instruments
Financial instruments issued by the Group are classified into financial liabilities or equity
instruments on the basis of the substance of the contractual arrangements and the economic nature
not only its legal form, together with the definition of financial liability and equity instruments on
initial recognition.
10.4.1 Classification, recognition and measurement of financial liabilities
On initial recognition, financial liabilities are classified into financial liabilities at FVTPL and
other financial liabilities.
- 31 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.4 Classification of financial liabilities and equity instruments - continued
10.4.1 Classification, recognition and measurement of financial liabilities - continued
10.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives
classified as financial liabilities) and those designated as at FVTPL. Except for derivative
financial liabilities presented separately, the financial liabilities at FVTPL are presented as held-
for-trading financial liabilities.
A financial liability is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of repurchasing in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the
Group manages together and there is objective evidence that the Group has a recent actual
pattern of short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.
A financial liability may be designated as at FVTPL on initial recognition when one of the
following conditions is satisfied: (i) Such designation eliminates or significantly reduces
accounting mismatch; or (ii) The Group makes management and performance evaluation on a fair
value basis, in accordance with the Group's formally documented risk management or investment
strategy, and reports to key management personnel on that basis. (iii) The qualified hybrid
financial instrument combines financial asset with embedded derivatives.
Transaction financial liabilities are subsequently measured at fair value. Any gains or losses
arising from changes in the fair value and any dividend or interest expenses paid on the financial
liabilities are recognized in profit or loss.
The amount of change in the fair value of the financial liability that is attributable to changes in
the credit risk of that liability shall be presented in other comprehensive income, other changes in
fair values are included in profit or loss for the current period. Upon the derecognition of such
liability, the accumulated amount of change in fair value that is attributable to changes in the
credit risk of that liability, which is recognized in other comprehensive income, is transferred to
retained earnings. Any dividend or interest income earned on the financial liabilities are
recognized in profit or loss. If the impact of the change in credit risk of such financial liability
dealt with in the above way would create or enlarge an accounting mismatch in profit or loss, the
Group shall present all gains or losses on that liability (including the effects of changes in the
credit risk of that liability) in profit or loss.
- 32 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.4 Classification of financial liabilities and equity instruments - continued
10.4.1 Classification, recognition and measurement of financial liabilities - continued
10.4.1.1 Financial liabilities at FVTPL - continued
Financial liabilities are measured at FVTPL when the financial liabilities is arising from
contingent consideration recognized by the Group as an acquirer in a business combination not
involving enterprises under common control.
10.4.1.2 Other financial liabilities
Except for financial liabilities, financial guarantee contracts and loan commitments arising from
transfer of financial assets that do not meet the derecognition criteria or those arising from
continuing involvement in the transferred financial assets, other financial liabilities are
subsequently measured at amortized cost, with gain or loss arising from derecognition or
amortization recognized in profit or loss.
That the Group and its counterparty modify or renegotiate the contract does not result in
derecognition of a financial liability subsequently measured at amortized cost but result in
changes in contractual cash flows, the Group will recalculate the carrying amount of the financial
liability, with relevant gain or loss recognized in profit or loss. The Group will determine carrying
amount of the financial liability based on the present value of renegotiated or modified contractual
cash flows discounted at the financial liability's original effective interest rate. For all costs or
expenses arising from modification or renegotiation of the contract, the Group will adjust the
modified carrying amount of the financial liability and make amortization during the remaining
term of the modified financial liability.
10.4.1.3 Financial guarantee contracts and loan commitments
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.
Subsequent to initial recognition, financial guarantee contracts that are not designated as financial
liabilities at fair value through profit or loss or financial liabilities arising from transfer of
financial assets that do not meet the derecognition criteria or those arising from continuing
involvement in the transferred financial assets, and loan commitments to provide a loan at a
below-market interest rate, which are not designated at fair value through profit or loss, are
measured at the higher of: (1) amount of loss provision; and (2) the amount initially recognized
less cumulative amortization amount determined based on the revenue standard.
- 33 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.4 Classification of financial liabilities and equity instruments - continued
10.4.2 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to
replace the original financial liability with a new financial liability with substantially different
terms is accounted for as an extinguishment of the original financial liability and the recognition
of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability)
derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) in profit or loss.
10.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments issued (including refinanced), repurchased,
sold and cancelled by the Group are recognized as changes of equity. Changes of fair value of
equity instruments is not recognized by the Group. Transaction costs related to equity transactions
are deducted from equity.
The Group recognizes the distribution to holders of the equity instruments as distribution of
profits, dividends paid do not affect total amount of shareholders' equity.
10.5 Derivatives and embedded derivatives
Derivatives include forward exchange contracts, currency swaps, interest rate swaps and foreign
exchange options, etc. Derivatives are initially measured at fair value at the date when the
derivative contracts are entered into and are subsequently re-measured at fair value.
Derivatives embedded in hybrid contracts with a financial asset host are not separated by the
Group. The hybrid contract shall apply to the relevant accounting standards regarding the
classification of financial assets as a whole.
- 34 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.5 Derivatives and embedded derivatives - continued
Derivatives embedded in hybrid contracts with hosts that are not financial assets are separated and
treated as separate derivatives by the Group when they meet the following conditions:
(1) the economic characteristics and risks of the embedded derivative are not closely related to
those of the host contract.
(2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative.
(3) the hybrid contracts are not measured at fair value through profit or loss.
For the embedded derivative separated from the host contracts, the Group accounts for the host
contracts in the hybrid contracts with applicable accounting standards. When the embedded
derivatives whose fair value cannot be measured reliably by the Group according to the terms and
conditions of the embedded derivatives, the fair value of such derivatives are measured at the
difference between the fair value of the hybrid contracts and the fair value of the host contracts.
By adopting the above method, if the embedded derivative cannot be measured on a stand-alone
basis at the time when acquired or at subsequent balance sheet dates, the hybrid instrument is
designated as financial instruments at fair value through profit or loss as a whole.
10.6 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial
assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial
asset and settle the financial liability simultaneously, a financial asset and a financial liability shall
be offset and the net amount is presented in the balance sheet. Except for the above
circumstances, financial assets and financial liabilities shall be presented separately in the balance
sheet and shall not be offset.
10.7 Compound instrument
For convertible bonds issued by the Group that contain both liabilities and conversion option that
may convert the liabilities to its own equity instrument, upon initial recognition, the bonds are
splitted into liabilities and conversion option which are separately recognized. Therein, the
conversion option that exchanges a fixed amount of cash or other financial assets for a fixed
amount of equity instruments is accounted for as an equity instrument.
- 35 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.7 Compound instrument - continued
Upon initial recognition, the fair value of liability portion is determined based on the prevailing
market price of the bonds containing no conversion option. The overall issue price of the
convertible bonds net of the fair value of the liability portion is considered as the value of the
conversion option that enables the bonds holder to convert the bonds to equity instruments, and is
included in other equity instruments.
The liability portion of the convertible bonds is subsequently measured at amortized cost using
effective interest method; the value of the conversion option classified as equity instrument
remain in equity instrument. The expiry or conversion of convertible bonds will not result in loss
or gain.
The transaction costs incurred for issuance of the convertible bonds are allocated between the
liability portion and equity instrument portion in proportion to their respective fair value. The
transaction cost relating to the equity instrument portion is directly included in equity instrument;
while the transaction cost relating to the liability portion is included in the carrying amount of the
liability, and amortized over the lifetime of the convertible bonds using effective interest method.
10.8 Reclassification of financial instruments
When the Group changes the business model to manage the financial assets, the financial assets
affected will be reclassified and no financial liabilities will be reclassified.
The financial assets are reclassified by the Group and are accounted for prospectively since the
date of reclassification (i.e. the first date of the initial reporting period after the business model of
which the financial assets are reclassified by the enterprise is changed).
Where a financial asset at amortised cost is reclassified as a financial assets at fair value through
profit or loss ("FVTPL") by the Group, such financial asset is measured at fair value at the date of
reclassification and the difference between the original carrying amount and the fair value is
recognized in profit or loss for the period.
Where a financial asset at amortised cost is reclassified as a financial asset at fair value through
other comprehensive income ("FVTOCI") by the Group, such financial asset is measured at the
fair value at the date of reclassification, and the difference between the original amount and the
fair value is recognized in other comprehensive income.
- 36 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.8 Reclassification of financial instruments - continued
Where a financial asset at FVTOCI is reclassified as a financial asset at amortised cost by the
Group, the accumulated gains or losses previously recognized in other comprehensive income are
transferred out and the fair value is adjusted as the fair value at the date of reclassification. The
adjusted fair value is recognized as the new carrying amount, as if the financial asset had been
measured at amortised cost.
Where a financial asset at FVTOCI is reclassified as a financial asset at FVTPL by the Group,
such financial asset continues to be accounted for at fair value. At the same time, the accumulated
gains or losses previously recognized in other comprehensive income are transferred to profit or
loss for the period.
Where a financial asset at FVTPL is reclassified as a financial asset at amortised cost by the
Group, the fair value at the date of reclassification is recognized as the new account balance.
Where a financial asset at FVTPL is reclassified as a financial asset at FVTOCI by the Group,
such financial asset continues to be measured at fair value.
Where a financial asset at FVTPL is reclassified, the effective interest rate is determined on the
basis of the fair value of the financial asset at the date of reclassification.
11. Accounts receivable
The Group makes internal credit ratings on customers and determines expected losses rate of
notes receivable, accounts receivable, other receivables and long-term receivables. Basis for
determining ratings and the expected losses rates are as follows:
Internal Average expected
Basis for determining portfolio
credit rating loss rate (%)
Customers can make repayments within credit term and have good
A credit records based on historical experience. The probability of default 0.00-0.10
on payment of due amounts is extremely low in the foreseeable future.
The customer may have overdue payment based on historical
B 0.10-0.30
experience but they can make repayments.
The evidences indicate that the overdue credit risks of the customer are
C 0.30-50.00
significantly increased and there is probability of default on payment.
The evidences indicate that the accounts receivable are impaired or the
D customer has significant financial difficulty. The amounts cannot be 50.00-100.00
recovered in the foreseeable future.
- 37 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Receivables financing
Notes receivable classified to hedging instruments for the purpose of hedging, should be listed as
receivables financing within one year (including one year). If the term above one year, it should
be listed as other investment on bonds. Related accounting policies refer to Note IV, 10.
13. Inventories
13.1 Categories of inventories
Inventories include raw materials, merchandise and others. Inventories are initially measured at
cost. Cost of inventories comprises all costs of purchase, costs of conversion and other
expenditures incurred in bringing the inventories to their present location and condition.
13.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method and
first-in-first-out method.
13.3 Basis for determining net realizable value of inventories and provision methods for
decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value, a provision for decline in value of
inventories is made.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes.
Net realizable value is determined on the basis of clear evidence obtained, after taking into
consideration the purposes of inventories being held and effect of post balance sheet events.
Provision for decline in value of other inventories is made based on the excess of cost of
inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that
previously caused inventories to be written down below cost no longer exist so that the net
realizable value of inventories is higher than their cost, the original provision for decline in value
is reversed and the reversal is included in profit or loss for the period.
- 38 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Inventories - continued
13.4 Inventory count system
The inventory count method adopts perpetual inventory system.
13.5 Amortization methods for low cost and short-lived consumable items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized using the
immediate write-off method.
14. Contract assets
14.1 Recognition and criteria of contract assets
A contract asset represents the Group's right to consideration in exchange for goods or services
that the Group has transferred to a customer, and such right depends on factors other than the
passage of time. The Group's unconditional right (only the passage of time is required) to
consideration from the customer is separately presented as " accounts receivable".
14.2 Determination and accounting treatments of expected credit losses ("ECL") for contract
assets
Refer to Note IV,10.2 " Impairment of financial instruments" for determination and accounting
treatments of expected credit losses for contract assets.
15. Assets held for sale
When the Group withdrew the book value of certain assets or disposal group mainly through
disposal instead of continual application, the assets should be classified as held-for-sale assets.
Assets or disposal group classified as held-for-sale assets should meat following conditions: (1)
The current status is available for immediate distribution according to similar transactions of this
category of assets or disposal group; (2) The transaction is likely to occur, i.e. the Group has made
its resolution over the distribution arrangements and acquired purchase commitment. Also the
distribution is going to be fulfilled within a year.
- 39 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Assets held for sale - continued
If the holding company loses control of its subsidiary for reasons like subsidiary disposal, in
regardless of whether the holding company still keeps part of equity investment, once the
proposed investment disposal meets the requirements of being classified as available for sale
assets in the holding company's individual statement, all assets and liabilities of the subsidiary
should be classified as held-for-sale in consolidated financial statement.
The group's non-current assets and disposal group are measured at the lower of book value and
the net value of fair value less costs to sell. Once the book value is higher than the net value of
fair value less costs to sell, the book value should be adjusted to the net value and the excess
should be recognized as impairment losses and provision for held-for-sale assets impairment
should be made. A gain and a reverse in the previous provision for held-for-sale assets impairment
can be recognized for any increase in fair value less costs to sell at subsequent balance sheet
dates, to the extent that it is not in excess of the cumulative impairment loss that has been
recognized. Asset impairment losses recognized before such assets are classified as held for sale
will not be reversed.
Non-current held-for-sale assets are not subject to depreciation and amortization. The creditor
interest and other expenses of disposal group classified as held-for-sale asset should still be
recognized.
Once the associate or joint venture equity investment is completely or partly classified as held-
for-sale assets, the classified part of the investment is not subject to equity method measurement.
If an asset or a disposal group has been classified as held for sale but the recognition criteria for
non-current assets held for sale are no longer met, the Group shall cease to classify the asset or
disposal group as held for sale. It shall be measured at the lower of (1) the carrying amount before
the asset or disposal group was classified as held for sale, adjusted for any depreciation,
amortisation or impairment that would have been recognised had the asset or disposal group not
been classified as held for sale; and (2) the recoverable amount at the date of the decision not to
sell.
For equity investments in associates or joint ventures that are classified as held for sale but the
recognition for non-current assets held for sale are no longer met, such investments are accounted
for retrospectively using the equity method from the date when they classified as held for sale.
The financial statements for the held-for-sale period are adjusted accordingly.
- 40 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Long-term equity investments
16.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its
returns. Joint control is the contractually agreed sharing of control over an economic activity, and
exists only when the strategic financial and operating policy decisions relating to the activity
require the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee, the effect of potential voting rights of the
investee (for example, warrants and convertible debts) held by the investing enterprises or other
parties that are currently exercisable or convertible shall be considered.
16.2 Determination of initial investment cost
For a long-term equity investment acquired through a business combination involving enterprises
under common control, the investment cost of the long-term equity investment is the attributable
share of the carrying amount of the shareholders' equity of the acquiree at the date of combination.
The difference between the initial investment cost and the carrying amount of cash paid, non-cash
assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the
consideration of the combination is satisfied by the issue of equity securities, the initial
investment cost of the long-term equity investment shall be the share of party being absorbed of
the owners' equity in the consolidated financial statements of the ultimate controlling party at the
date of combination. The aggregate face value of the shares issued shall be accounted for as share
capital. The difference between the initial investment cost and the aggregate face value of the
shares issued shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient,
any excess shall be adjusted to retained earnings. Where equity interests in an acquiree are
acquired in stages through multiple transactions ultimately constituting a business combination
involving entities under common control, the acquirer shall determine if these transactions are
considered to be a "package deal". If yes, these transactions are accounted for as a single
transaction where control is obtained. If no, the initial investment cost of the long-term equity
investment is the share of book value of owners' equity of the acquired entity in the ultimate
controlling party's consolidated financial statements at the date of combination. The difference
between the initial investment cost and the sum of carrying amount of equity investments
previously held in the acquiree and the new investment cost is adjusted to capital reserve. If the
balance of capital reserve is not sufficient to absorb the difference, any excess is adjusted to
retained earnings. Other comprehensive income recognized for the previously held equity
investments by accounting treatment of equity method or available-for-sale financial assets is not
subject to accounting treatment temporarily.
- 41 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Long-term equity investments - continued
16.2 Determination of initial investment cost - continued
For a long-term equity investment acquired through business combination not involving
enterprises under common control, the investment cost of the long-term equity investment
acquired is the cost of acquisition.
The absorbing party's or purchaser's intermediary expenses (fees in respect of auditing, legal
services, valuation and consultancy services, etc.) and other administrative expenses attributable
to the business combination are recognized in profit or loss in the periods when they are incurred.
The long-term equity investment acquired otherwise than through a business combination is
initially measured at its cost. When the entity is able to exercise significant influence or joint
control (but not control) over an investee due to additional investment, the cost of long-term
equity investments is the sum of the fair value of previously-held equity investments determined
in accordance with Accounting Standard for Business Enterprises No.22 - Financial Instruments:
Recognition and Measurement (ASBE No. 22) and the additional investment cost.
16.3 Subsequent measurement and recognition of profit or loss
16.3.1 Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the
Company's separate financial statements. A subsidiary is an investee that is controlled by the
Group.
Under the cost method, a long-term equity investment is measured at initial investment cost.
Additional or withdrawing investment would affect the cost of long-term equity investment.
Investment income is recognized in the period in accordance with the attributable share of cash
dividends or profit distributions declared by the investee.
16.3.2 Long-term equity investments accounted for using the equity method
Except associate and joint venture investment completely or partly classified as available for sale,
and The Group accounts for investment in associates and joint ventures using the equity method.
An associate is an entity over which the Group has significant influence and a joint venture is a
joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the joint arrangement.
- 42 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Long-term equity investments - continued
16.3 Subsequent measurement and recognition of profit or loss - continued
16.3.2 Long-term equity investments accounted for using the equity method - continued
Under the equity method, where the initial investment cost of a long-term equity investment
exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost
is less than the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, the difference is recognized in profit or loss for the period, and the cost of the long-
term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the other comprehensive income and
net profit or loss of the investee for the period as other comprehensive income and investment
income or loss respectively for the period, and the carrying amount of the long-term equity
investment is adjusted accordingly. The carrying amount of the investment shall be reduced by the
portion of any profit distributions or cash dividends declared by the investee that is distributed to
the investing enterprise. The investing enterprise shall adjust the carrying amount of the long-term
equity investment for other changes in owners' equity of the investee (other than net profits or
losses, other comprehensive income and profit distribution), and include the corresponding
adjustment in capital reserve. The Group recognizes its share of the investee's net profit or loss
based on the fair value of the investee's individually identifiable assets at the acquisition date after
making appropriate adjustments. Where the accounting policies and accounting period adopted by
the investee are different from those of the investing enterprise, the investing enterprise shall
adjust the financial statements of the investee to conform to its own accounting policies and
accounting period, and recognize other comprehensive income and investment income or losses
based on the adjusted financial statements. Unrealized profits or losses resulting from the Group's
transactions and assets invested or sold that are not recognized as business transactions with its
associates and joint ventures are recognized as investment income or loss to the extent that those
attributable to the Group's, equity interest are eliminated. However, unrealized losses resulting
from the Group's transactions with its associates and joint ventures which represent impairment
losses on the transferred assets are not eliminated.
The Group discontinues recognizing its share of net losses of the investee after the carrying
amount of the long-term equity investment together with any long-term interests that in substance
form part of its net investment in the investee are reduced to zero. Except that if the Group has
incurred obligations to assume additional losses, a provision is recognized according to the
obligation expected, and recorded in the investment loss for the period. Where net profits are
subsequently made by the investee, the Group resumes recognizing its share of those profits only
after its share of the profits exceeds the share of losses previously not recognized.
- 43 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Long-term equity investments - continued
16.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually
received and receivable and the carrying amount is recognized in profit or loss for the period.
For long-term equity investments accounted for using the equity method, if the remaining interest
after disposal is still accounted for using the equity method, other comprehensive income
previously recognized for using the equity method is accounted for on the same basis as would
have been required if the investee had directly disposed of related assets or liabilities, and
transferred to profit or loss for the period on a pro rata basis; owners' equity recognized due to
changes in other owners' equity of the investee (other than net profit or loss, other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
For long-term equity investments accounted for using the cost method, if the remaining interest
after disposal is still accounted for using the cost method, other comprehensive income previously
recognized for using the equity method or in accordance with the standards for the recognition
and measurement of financial instruments before obtaining the control over the investee, is
accounted for on the same basis as would have been required if the investee had directly disposed
of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis;
changes in other owners' equity in the investee's net assets recognized under the equity method
(other than net profit or loss, other comprehensive income and profit distribution) is transferred to
profit or loss for the period on a pro rata basis.
The Group loses control on investee due to disposal of part of shares, during preparing separate
financial statement, remaining shares after disposal can make joint control or significant influence
on investee, are accounted under equity method, and adjusted as they are accounted under equity
method since the acquisition date; If remaining shares after disposal cannot make joint control or
significant influence on investee, they are accounted according to recognition and measurement of
financial instruments, and the difference between fair value on date of losing control and book
value is recognized in profit or loss of current period. Before the Group obtained controls over the
investee, other comprehensive income recognized due to equity method or recognition and
measurement of financial instruments, is accounted on the basis of related assets and liabilities,
and recognized in profit or loss; changes of owners' equity except for net profit or loss, other
comprehensive income and profit distribution are recognized in profit or loss of current period.
Remaining shares after disposal are accounted under equity method, other comprehensive income
and other owners' equity are carried forward as proportion; remaining shares after disposal are
accounted due to recognition and measurement of financial instruments other comprehensive
income and other owners' equity are all carried forward
- 44 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Long-term equity investments - continued
16.4 Disposal of long-term equity investments - continued
For the Group loses joint control or significant influence on investee after part disposal of shares,
remaining shares after disposal are accounted according to recognition and measurement of
financial instruments, the difference between fair value at the date of losing joint control or
significant influence and book value is recognized in profit or loss of current period. Other
comprehensive income recognized under equity method, is accounted on the basis of related
assets or liabilities when stop using equity method, change of owners' equity except for net profit
or loss, other comprehensive income and profit distribution is recognized in investment income of
current period.
The Group loses control on subsidiaries through step by step transactions of disposal, if
transactions are "package deal", all transactions are seemed as one transaction of disposal
investment on subsidiaries, difference between amount of disposal and book value of long-term
equity investment, is recognized as other comprehensive income, and recognized in income for
the period when losing control.
17. Investment properties
Investment property is property held by the Group to earn rentals or for capital appreciation or
both. It includes a land use right that is leased out; a land use right held for transfer upon capital
appreciation; and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with an investment property will flow to the Group and the
subsequent expenditures can be measured reliably, other subsequent expenditures are recognized
in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a
depreciation or amortization policy for the investment property which is consistent with that for
buildings or land use rights.
An investment property is derecognized upon disposal or when the investment property is
permanently withdrew from use and no future economic benefits are expected from the disposal.
When an investment property is sold, transferred, retired or damaged, the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
- 45 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Fixed assets and depreciation
Fixed assets are tangible assets that are held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes, and have useful lives of more than
one accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Fixed assets are initially measured at cost. Upon being restructured into a stock company, the
fixed assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and
if it is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the
replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in
the period in which they are incurred.
A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The useful life, estimated net
residual value rate and annual depreciation rate of each category of fixed assets are as follows:
Estimated Estimated Annual
Category
useful lives residual value (%) depreciation rate (%)
Port and terminal facilities 5-50 years 5.00 1.90-19.00
Buildings and structures 10-50 years 5.00 1.90-9.50
Machinery and equipment, furniture
3-20 years 5.00 4.75-31.67
and fixture and other equipment
Motor vehicles and cargo ships 5-25 years 5.00 3.80-19.00
Estimated net residual value of a fixed asset is the estimated amount that the Group would
currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the
asset were already of the age and in the condition expected at the end of its useful life.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from
its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired
or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and
related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end, and account for any change
as a change in an accounting estimate.
19. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period, borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.
Construction in progress is transferred to a fixed asset when it is ready for intended use.
- 46 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition, construction or production of a qualifying asset is interrupted abnormally and when
the interruption is for a continuous period of more than 3 months. Capitalization is suspended
until the acquisition, construction or production of the asset is resumed. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds. Where funds are borrowed under
general-purpose borrowings, the Group determines the amount of interest to be capitalized on
such borrowings by applying a capitalization rate to the weighted average of the excess of
cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose
borrowings. During the capitalization period, exchange differences related to a specific-purpose
borrowing denominated in foreign currency are all capitalized. Exchange differences in
connection with general-purpose borrowings are recognized in profit or loss in the period in
which they are incurred.
21. Intangible assets
21.1 Intangible assets
Intangible assets include land use rights, terminal operating rights and others.
An intangible asset is measured initially at cost. Upon being restructured into a stock company,
the intangible assets initially contributed by the state-owned shareholders are recognized based on
the valuation amounts confirmed by the state-owned assets administration department. Except for
port operation rights, when an intangible asset with a finite useful life is available for use, its
original cost is amortized over its estimated useful life. The terminal operating rights under the
output method are amortized through periods according to the ratio of the estimated minimum
guaranteed throughput to the estimated minimum guaranteed total throughput during the operation
period. When the estimated minimum guaranteed throughput cannot be measured reliably, the
straight-line method will be used for amortization. An intangible asset with uncertain useful life
will not be amortized.
- 47 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
21. Intangible assets - continued
21.1 Intangible assets - continued
The amortization method, useful life and estimated net residual value of various intangible assets
are as follows:
Category Amortization Method Useful Life (year) Residual value (%)
Land use rights Straight-line method 40-50 -
Terminal operating right Output/Straight-line method 30-50 -
Others Straight-line method 5-50 -
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization
method at the end of the year, and makes adjustments when necessary.
21.2 Research and development expenditure
Expenditure during the research phase is recognised as an expense in the period in which it is
incurred.
Expenditure during the development phase that meets all of the following conditions at the same
time is recognised as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognised in profit or loss for the period.
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits, including the evidence of the existence of a market for the output of the
intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness
of the intangible asset.
(4) the availability of adequate technical, financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase,
the Group recognises all of them in profit or loss for the period. The costs of intangible assets
generated by the internal research only include the total expenditure incurred for the period from
the time point of capitalization to the intangible assets are ready for intended use. For the identical
intangible asset, the expenditures recorded as expenses before they qualify for capitalization
during the development process are not adjusted.
- 48 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Impairment of non-financial assets other than goodwill
The Group assesses at the balance sheet date whether there is any indication that the long-term
equity investments, investment properties measured at cost method, construction in progress,
fixed assets, right-of-use assets, intangible assets with a finite useful life and assets related to
contract costs may be impaired. If there is any indication that such assets may be impaired,
recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and
intangible assets not yet available for use are tested for impairment annually, irrespective of
whether there is any indication that the assets may be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the
recoverable amount of an individual asset, the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value
less costs of disposal and the present value of the future cash flows expected to be derived from
the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit
is accounted for as an impairment loss and is recognized in profit or loss.
Once the impairment loss of above-mentioned asset is recognized, it shall not be reversed in any
subsequent period.
In determining the impairment losses of assets related to contract costs, the Group first determines
the impairment losses of other assets related to contracts recognized in accordance with other
relevant ASBEs; then, for assets related to contract costs, if the carrying amount of the assets is
higher than the difference between: (1) the remaining consideration that the Group expects to
obtain for the transfer of the goods or services related to the asset; and (2) the estimated costs to
be incurred for the transfer of the related goods or services, any excess is provided for impairment
and recognized as impairment loss of assets.
Except for impairment loss of assets related to contract costs, the above impairment loss is
recognized, it cannot be reversed in the subsequent accounting periods. After the provision for
impairment of assets related to contract costs is made, if the factors of impairment in previous
periods change so that the difference between the above two is higher than the carrying amount of
the asset, the original provision for impairment of the asset is reversed and recognized in profit or
loss for the period, provided that the carrying amount of the asset after the reversal does not
exceed the carrying amount of the asset at the date of reversal assuming no provision for
impairment was made.
23. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over
the current and subsequent periods (together of more than one year). Long-term prepaid expenses
are amortized using the straight-line method over the expected periods in which benefits are
derived.
- 49 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Contract liabilities
A contract liability represents the Group's obligation to transfer goods or services to a customer
for which the Group has received consideration (or an amount of consideration is due) from the
customer. A contract asset and a contract liability relating to the same contract are accounted for
and presented on a net basis.
25. Employee benefits
Employee benefits are all forms of considerations given by the Group in exchange for services
rendered by employees or for the termination of employment. Employee benefits include short-
term benefits, post-employment benefits, termination benefits and other long-term employee
benefits.
25.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make the full
payments to within the 12 months after the annual reporting period during which relevant services
are provided by the employees is ended, except the post-employment benefits and termination
benefits. Specifically, the short-term benefits include: employee salaries, bonuses, allowances and
subsidies, employee benefits, social insurance contributions such as the medical insurance, the
work injury insurance and the maternity insurance, housing funds, trade union funds and
employee education funds, short-term paid absence, short-term profit sharing plan, non-monetary
welfare and other short-term benefits.
Short-term employee benefits payable are recognized as liabilities, with a corresponding charge to
the profit or loss for the period or in the costs of relevant assets in the accounting period in which
employees provide services to the Group. Staff welfare expenses incurred by the Group are
recognized in profit or loss for the period or the costs of relevant assets based on the actually
occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured
at fair value.
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, etc. and
payments of housing funds, as well as union running costs and employee education costs provided
in accordance with relevant requirements, are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities,
with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
- 50 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Employee benefits - continued
25.2 Post-employment benefits
Post-employment benefits refer to the rewards and benefits of various forms provided by the
Group after the employees have been retired or terminated the labor relationship with the
enterprises for the services rendered by the employees, except the short-term salaries and the
termination benefits. The post-employment benefits consist of the pension insurance, the annuity,
the unemployment insurance and other post-employment benefits.
Post-employment benefit plans are classified by the Group into defined contribution plans and
defined benefit plans. The post-employment benefit plan refers to agreements the Group entered
into with the employees on the post-employment benefits or the regulations or measures
established by the Group for provisions of the post-employee benefits, among which the defined
contribution plan refers to the post-employment benefits plan under which the Group shall no
longer undertake any obligations of payments after paying fixed expenses to independent funds;
the defined benefit plans refer to the post-employment benefit plans other than the defined
contribution plans. During the accounting period when employees render services to the Group,
the amounts payable calculated based on the defined contribution plan are recognized as liabilities
and included to the profit or loss for the period or relevant costs of assets.
For defined benefit plans, the Group calculates defined benefit plan obligations using projected
unit credit method and the service cost resulting from employee service in the current period is
recorded in profit or loss or the cost of related assets. Defined benefit costs are categorized as
follows:
Service cost (including current service cost, past service cost, as well as gains and losses on
settlements);
Net interest of net liabilities or assets of defined benefit plan (including interest income of
planned assets, interest expenses of defined benefit plan liabilities and effect of asset
ceiling); and
Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.
Service costs and net interest of net liabilities and net assets of defined benefit plans are
recognized in profit or loss of current period or costs of related assets. Remeasurement of the net
defined benefit liability (asset) (including actuarial gains and losses, the return on plan assets,
excluding amounts included in net interest on the net defined benefit liability (asset), and any
change in the effect of the asset ceiling, excluding amounts included in net interest on the net
defined benefit liability (asset)) are recognized in other comprehensive income.
The deficit or surplus resulting from the present value of the defined benefit plan obligation less
the fair value of the defined benefit plan assets is recognized as a net defined benefit plan liability
or net asset.
- 51 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Employee benefits - continued
25.3 Termination benefits
Termination benefits refer to the compensations the Group pay to the employees for terminating
the employment relationship with employees before the expiry of the employment contracts or
encouraging employees to accept voluntary redundancy. When the Group provides termination
benefits to employees, employee benefit liabilities are recognized for termination benefits, with a
corresponding charge to the profit or loss for the period at the earlier of: (1) when the Group
cannot unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring
that involves the payment of termination benefits.
25.4 Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except for short-term benefits,
post-employment benefits, and termination benefits.
Other long-term employee benefits that qualify as defined contribution plans are treated in
accordance with the relevant provisions of the defined contribution plans mentioned above, except
that the net liability or net asset for other long-term employee benefits is recognized and measured
in accordance with the relevant provisions of the defined benefit plans. At the end of the reporting
period, employee compensation costs arising from other long-term employee benefits are
recognized as three components: service cost, net interest on the net liability or net asset for other
long-term employee benefits, and changes resulting from the remeasurement of the net liability or
net asset for other long-term employee benefits. The total net amount of these items is included in
profit or loss for the period or in the cost of the related assets.
The Group provides internal retirement benefits to employees accepting the internal retirement
arrangements. Internal retirement benefits refer to the payments of salaries and social security
contributions for employees who reach at the retirement age regulated by the country and are
approved to quit the job voluntarily. For internal retirement benefits, the internal retirement
benefits the Group is expected to pay during the period from the date when employees stop
providing services to the date of normal retirement are recognized as liabilities at the present
value and included to the profit or loss for the period when relevant recognition requirements of
the internal retirement benefits are met.
26. Provisions
Provisions are recognized when the Group has a present obligation related with contingencies, it
is probable that the Group will be required to settle that obligation causing an outflow of
economic benefits, and a reliable estimate can be made of the amount of the obligation.
- 52 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Provisions - continued
The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at balance sheet date, taking into account the risks, uncertainties and time
value of money surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows where the effect of the time value of money is material.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognized as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable should not exceed the carrying
amount of provisions.
27. Revenue recognition
The Group's revenue is mainly from the following business types:
(1) Port service.
(2) Bonded logistics service.
(3) Other business such as property development and investment.
The Group recognizes revenue based on the transaction price allocated to such performance
obligation when a performance obligation is satisfied, i.e. when "control" of the goods or services
underlying the particular performance obligation is transferred to the customer. A performance
obligation represents the commitment that a good and service that is distinct shall be transferred
by the Group to the customer. Transaction price refers to the consideration that the Group is
expected to charge due to the transfer of goods or services to the customer, but it does not include
payments received on behalf of third parties and amounts that the Group expects to return to the
customer.
It is a performance obligation satisfied during a period of time if one of the following conditions
is met in accordance with New revenue standards: (i) the customer obtains and consumes
economic benefits at the same time of the Company's performance; (ii) the customer is able to
control goods in progress during the Company's performance; (iii) goods or services generated
during the Company's performance have irreplaceable utilization, and the Company is entitled to
collect amounts of cumulative performance part which have been done up to now. Otherwise, the
Company will recognize revenue at the point in time when the customer obtains control over
relative goods or services.
The Group adopts output method, i.e. the value of goods or services transferred to customers to
determine the appropriate progress of performance. Where the progress cannot be determined
reasonably, the revenue is recognized based on the amount of cost that is expected to be
compensated based on the cost already incurred, until the progress of performance is reasonably
determined.
- 53 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Revenue recognition - continued
Contract asset refers to the Company's right to consideration in exchange for goods or services
that the Company has transferred to a customer when that right is conditioned on something other
than the passage of time. Accounting policies relating to contract asset are specified in Note IV,
10. The Company's unconditional (i.e., depending on the passage of time only) right to receive
consideration from the customer is separately presented as receivables.
Contract liabilities refer to the Company's obligation to transfer goods or services to a customer
for which the Company has received consideration from the customer.
Contract assets and contract liabilities under the same contract are presented at net amount.
If the contract includes two or more performance obligations, at contract inception, the Group
allocates the transaction price to single performance obligation according to relative proportion of
the stand-alone selling prices of the goods or services promised by single performance obligation.
However, where there is conclusive evidence that the contract discount or variable consideration
is only related to one or more (not all) performance obligations in the contract, the Group shall
allocate the contract discount or variable consideration to relevant one or more performance
obligations. The stand-alone selling price is the price at which the Group would sell a promised
good or service separately to a customer. If a stand-alone selling price is not directly observable,
the Group shall consider all information that is reasonably available to the Group and maximize
the use of observable inputs and apply estimates methods consistently in similar circumstances.
For contracts that contain variable consideration (e.g. sales discount), the Group estimates the
amount of consideration using either the expected value or the most likely amount. The
transaction price that includes variable consideration is only to the extent that it is highly probable
that such an inclusion will not result in a significant revenue reversal in the future when the
uncertainty is subsequently resolved. At the end of each reporting period, the Group reevaluates
the variable consideration included in the transaction price.
For non-cash consideration from customer, the Group recognizes the transaction price based on
the fair value of the non-cash consideration. Where the fair value of the non-cash consideration
cannot be reasonably estimated, the Group recognizes the transaction price indirectly by reference
to the stand-alone price of the promised goods or services promised transferred to the customer.
If the contract includes significant financing component, the Group determines the transaction
price based on the amount payable under the assumption that the customer pays that amount
payable in cash when "control" of the goods or services is obtained by the customer. The
difference between the transaction price and the contract consideration shall be amortized within
the contract period using effective interest rate. If the Group expects, at contract inception, that the
period between when the Group transfers a promised good or service to a customer and when the
customer pays for that good or service will be one year or less, the Group needs not to consider
the significant financing component.
- 54 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Revenue recognition - continued
The Group determines whether it is a principal or an agent at the time of the transaction based on
whether it owns the "control" of the goods or services before the transfer of such goods or
services to the customer. The Group is a principal if it controls the specified good or service
before that good or service is transferred to a customer, and the revenue shall be recognized based
on the total consideration received or receivable; otherwise, the Group is an agent, and the
revenue shall be recognized based on the amount of commission or handling fee that is expected
to be charged, and such amount is determined based on the net amount of the total consideration
received or receivable after deducting the prices payable to other related parties or according to
the established commission amount or proportion.
Where payment is received in advance, the advance payment received shall be recorded as a
liability and recognized as revenue when the relevant performance obligation is satisfied. The
above amount will be recognized as revenue proportionately in accordance with the model of
contractual rights exercised by the customer if (1) the Group's advance payment does not need to
be returned, (2) the customer may waive all or part of its contractual rights, and (3) the Group
expects to be entitled to the amount related to the contractual rights waived by the customer.
Otherwise, the balance of the liabilities is recognized as revenue by the Group only when the
possibility of the customer requesting the satisfaction of the remaining performance obligations is
extremely remote.
28. Contract costs
28.1 Costs of obtaining a contract
If the incremental costs (costs that will not occur if no contract obtained) incurred for obtaining
the contract are expected to be recovered, the Group recognizes it as an asset amortized on a basis
that is consistent with the transfer to the customer of the goods or services to which the asset
relates and recognized in profit or loss for the period. If the amortization period of the asset does
not exceed one year, it is recognized in profit or loss for the period in which it occurs. Other
expenses incurred by the Group for obtaining the contract are recognized in profit or loss for the
period in which it occurs, except as expressly borne by the customer.
28.2 Costs to fulfil a contract
If the costs incurred in fulfilling a contract are not within the scope of other standard other than
the revenue standard, the Group shall recognized an asset from the costs incurred to fulfil a
contract only if those costs meet all of the following criteria: (1) the costs relate directly to a
contract or to an anticipated contract that the Group can specifically identify; (2) the costs
generate or enhance resources of the entity that will be used in satisfying performance obligations
in the future; and (3) the costs are expected to be recovered. The asset mentioned above shall be
amortized on a basis that is consistent with the transfer to the customer of the goods or services to
which the asset relates and recognized in profit or loss for the period.
- 55 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Types and accounting treatments of government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to
the Group at no consideration. A government grant is recognized only when the Group can
comply with the conditions attached to the grant and the Group will receive the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset, it is
measured at fair value. If the fair value cannot be reliably determined, it is measured at a nominal
amount. A government grant measured at a nominal amount is recognized immediately in profit
or loss for the period.
A government grant related to an asset is recognized as deferred income, and evenly amortized to
profit or loss over the useful life of the related asset. A government grant measured at a nominal
amount is recognized immediately in profit or loss in the current period. Where the relevant asset
is sold, transferred, scrapped or damaged prior to the end of its useful life, the related
undistributed deferred income is transferred to the profit or loss of the disposal period.
For a government grant related to income, if the grant is a compensation for related expenses or
losses to be incurred in subsequent periods, the grant is recognized as deferred income and
recognized in profit or loss over the periods in which the related costs or losses are recognized; If
the grant is a compensation for related expenses or losses already incurred, the grant is recognized
immediately in profit or loss.
For government grants both related to asset and income, different parts should be distinguished
for accounting treatment; if it is difficult to distinguish, it as a whole should be classified as
government grants related to income.
A government grant related to the Group's daily activities is recognized in other income based on
the nature of economic activities; a government grant is not related to the Group's daily activities
is recognized in non-operating income.
30. Income tax
The income tax expenses include current income tax and deferred income tax.
30.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of
tax laws.
- 56 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Deferred tax assets/ deferred tax liabilities - continued
30.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their
tax base, or between the nil carrying amount of those items that are not recognized as assets or
liabilities and their tax base that can be determined according to tax laws, deferred tax assets and
liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred
tax assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be
utilized. However, for temporary differences associated with the initial recognition of goodwill
and the initial recognition of an asset or liability arising from a transaction, which is not a
business combination that affects neither the accounting profit nor taxable profits (or deductible
losses) at the time of transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Group
is able to control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with such investments and interests are only
recognized to the extent that it is probable that there will be taxable profits against which to utilize
the benefits of the temporary differences and they are expected to reverse in the foreseeable
future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates
applicable in the period in which the asset is realized or the liability is settled according to tax
laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except
when they arise from transactions or events that are directly recognized in other comprehensive
income or in equity, in which case they are recognized in other comprehensive income or in
equity, and when they arise from business combinations, in which case they adjust the carrying
amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the
benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it
becomes probable that sufficient taxable profits will be available.
- 57 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Deferred tax assets/ deferred tax liabilities - continued
30.3 Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax
liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities
simultaneously, in each future period in which significant amounts of deferred tax assets or
liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and
presented on a net basis.
31. Leases
Lease is a contract that conveys the right to use an asset for a period of time in exchange for
consideration.
For contracts that are signed or modified after the date of initial application, at
inception/modification of the contracts, the Group assesses whether the contract is, or contains, a
lease. Unless the terms and conditions of the contract are changed, the Group does not reassess
whether a contract is, or contains, a lease.
31.1 The Group as Lessee
31.1.1 Separating components of a lease
If a contract contains a lease component and one or more non-lease components, the Group
allocates the consideration in the contract to each lease component on the basis of the relative
stand-alone price of the lease components and the aggregate stand-alone price of the non-lease
components.
- 58 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as Lessee - continued
31.1.2 Right-of-use assets
Except for short-term leases and leases for which the underlying asset is of low value, at the
commencement date of the lease, the Group recognizes a right-of-use assets. The commencement
date of the lease is the date on which a lessor makes an underlying asset available for use by the
Group. The Group measures the right-of-use assets at cost. The cost of the right-of-use assets
comprises:
the amount of the initial measurement of the lease liabilities.
any lease payments made at or before the commencement date, less any lease incentives.
any initial direct costs incurred by the Group.
an estimate of costs to be incurred by the lessee in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease.
Right-of-use assets are depreciated by the Group in accordance with the ASBE No.4 Fixed
Assets. If the Group is reasonably certain, that the lease will transfer ownership of the underlying
asset to the Group by the end of the lease term, the right-of-use assets is depreciated from the
commencement date to the end of the useful life of the underlying asset. Otherwise, the right-of-
use assets is depreciated from the commencement date to the earlier of the end of the useful life of
the right-of-use assets or the end of the lease term.
The Group applies ASBE No. 8 Impairment of Assets, to determine whether the right-of-use
assets are impaired and to account for any impairment loss identified.
31.1.3 Lease liabilities
Except for short-term leases and leases for which the underlying asset is of low value, at the
commencement date of the lease, the Group measures the lease liabilities at the present value of
the lease payments that are not paid at that date. If the interest rate implicit in the lease cannot be
readily determined, the lessee shall use the lessee's incremental borrowing rate.
- 59 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as Lessee - continued
31.1.3 Lease liabilities - continued
The lease payments comprise the following payments by the Group for the right to use the
underlying asset during the lease term:
fixed payments (including in-substance fixed payments), less any lease incentives.
variable lease payments that depend on an index or a rate.
the exercise price of a purchase option if the Group is reasonably certain to exercise that
option.
payments for terminating the lease, if the lease term reflects the Group exercising an option
to terminate the lease.
amounts expected to be payable by the Group under residual value guarantees.
Variable lease payments that depend on an index or a rate, are initially measured using the index
or rate as at the commencement date. Variable lease payments not included in the measurement of
the lease liabilities, are recognised in profit or loss, or in the cost of relevant assets, in the period
of those payments.
Interest on the lease liabilities in each period during the lease term is calculated by a constant
periodic rate of interest on the remaining balance of the lease liabilities and recognized in the
current profit and loss or the cost of the relevant assets.
After the commencement date, if one of the following occurs, the lease liability is remeasured by
the Group with the adjustment to the right-of-use asset. If the carrying amount of the right-of-use
asset is reduced to zero and there is further reduction in the measurement of the lease liability, the
remaining remeasurement should be recognized in profit or loss.
there is a change in the lease term, or in the assessment of an option to purchase the
underlying asset, the Group remeasures the lease liabilities, on the basis of the revised lease
term and the revised discount rate.
there is a change in the amounts expected to be payable under a residual value guarantee, or
in future lease payments resulting from a change in an index or a rate used to determine
those payments, the Group remeasures the lease liabilities, on the basis of the revised lease
payments and the unchanged discount rate, unless the change in the lease payments results
from a change in floating interest rates, in which case a revised discount is applied to the
present value.
- 60 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as Lessee - continued
31.1.4 Short-term leases and leases for which the underlying asset is of low value
The Group elects not to recognise right-of-use assets or lease liabilities for short-term leases and
leases for which the underlying asset is of low value, i.e. port and terminal facilities, buildings,
machinery and equipment, furniture and fixture and other equipment, motor vehicles and cargo
ships, other short-term leases and leases for which the underlying asset is of low value. A shorts-
term lease is a lease that, at the commencement date, has a lease term of 12 months or less. A
lease for which the underlying asset is of low value is that, the value of the underlying asset is less
than RMB50,000 when it is new. For short-term leases and leases for which the underlying asset
is of low value, the Group recognises the lease payments associated with those leases as an
expense or cost of relevant asset on a straight-line basis over the lease term.
31.1.5 Lease modifications
A lease modification should be accounted for as a separate lease if both of the following apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets.
the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price
according to the circumstances of the particular contract.
For a lease medication that is not accounted for as a separate lease, at the effective date of the
lease modification, the Group should allocate the consideration in the modified contract,
determine the lease term of the modified lease and remeasure the lease liability by discounting the
revised payments using a revised discount rate.
For lease modifications that decrease the scope of the lease or narrow the term of the lease, the
Group should decrease the carrying amount of the right-of-use asset with any gain or loss relating
to the partial or full termination of the lease should be recognized in profit or loss. For
remeasurement of lease liabilities from all other lease modifications, a corresponding adjustment
is made to the carrying amount of the right-of-use asset.
31.2 The Group as Lessor
31.2.1 Separating components of a lease
Where the contract contains both the lease and non-lease parts, the Group shall apportion the
contract consideration in accordance with the provisions of the revenue standard on the
apportionment of the transaction price, based on the separate prices of the lease part and the non-
lease part.
- 61 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as Lessor - continued
31.2.2 Classification of leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership. All other leases are classified as operating leases.
31.2.2.1 The Group as lessor under operating leases
The Group recognises lease payments from operating leases as income on a straight-line basis.
The Group capitalises initial direct costs incurred in obtaining an operating lease and recognises
those costs as an expense over the lease term on the same basis as the lease income.
Variable lease receipts relating to an operating lease not included in the lease receipts are
recognized in profit or loss by the Group when incurred.
31.2.2.2 The Group as lessor under finance leases
At the commencement date, the Group recognizes a finance lease receivable at the amount equal
to the net investment in the lease with finance lease assets derecognized. The net investment in the
lease is the sum of any unguaranteed residual value and lease payments receivable from the
commencement date, discounted at the interest rate implicit in the lease.
The amount of the lease payments receivable refers to the amount that the Group should collect
from the lessee for the purpose of transferring the leased assets during the lease term, including:
fixed payments (including in-substance fixed payments) paid by the lessee, less any lease
incentives.
variable lease payments that depend on an index or a rate.
the exercise price of a purchase option, provided that it is reasonably determined that the
lessee will exercise the option.
the lessee exercises the amount to be paid for the termination of the lease option, provided
that the lease term reflects the lessee's exercise of the option to terminate the lease.
the residual value of the guarantee provided by the lessee, the party concerned with the
lessee and the independent third party with the financial ability to perform the guarantee
obligation.
- 62 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as Lessor - continued
31.2.2 Classification of leases - continued
31.2.2.2 The Group as lessor under finance leases - continued
Variable payments receivable not included in the net investment in the lease are recognized in
profit or loss when they arise.
Interest income for each period over the lease term is recognized by the Group at the fixed
periodic rate.
31.2.3 Subleases
As a lessor of the sublease, the Group accounts for the original lease contract and the sublease
contract as two separate contracts. The Group classifies the subleases based on the right-of-use
assets generating from the original lease rather than the underlying assets of the original lease.
31.2.4 Lease modifications
The Group accounts for a modification to an operating lease as a new lease from the effective date
of the modification, considering any lease advances or receivables relating to the original lease as
the lease receipts for the new lease.
The Group should account for a modification to a finance lease as a separate lease if both:
The modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
The consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope with any appropriate adjustment to that stand-alone price.
For a modification to a finance lease that is not accounted for as a separate lease, the Group
should account for the modification as follows:
If the lease would have been classified as an operating lease had the modification been effect
at the inception date, the Group should account for the lease modification as a new lease
from the effective date of the modification, and measure the carrying amount of the
underlying asset as the net investment in the lease before the effective date of the lease
modification.
If the lease would have been classified as a finance lease if the modification had been in
effect at the inception date, the Group should apply the requirements of contract
modification and renegotiation under the ASBE No. 22 Financial Instruments: Recognition
and Measurement.
- 63 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as Lessor - continued
31.2.5 Sale and leaseback transactions
31.2.5.1 The Group as the seller-lessee
The Group applies the requirements of the revenue standard to determine whether the transfer of
an asset is accounted for as a sale of that asset. If the transfer of an asset does not constitute a sale,
the Group should continue to recognize the transferred assets and should recognize a financial
liability equal to the transfer proceeds applying ASBE No. 22 Financial Instruments: Recognition
and Measurement. If the transfer of an asset is a sale, the Group should measure the right-of-use
asset arising from the leaseback at the proportion of the previous carrying amount of the asset that
relates to the right of use, and recognize only the amount of any gain or loss that relates to the
rights transferred to the lessor.
31.2.5.2 The Group as the buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitutes a sale, the Group
does not recognize the transferred asset, but recognizes a financial liability equal to the transfer
proceeds in accordance with the ASBE No. 22 Financial Instruments: Recognition and
Measurement. If the transfer of an asset constitutes a sale, the Group accounts for the purchase of
the asset in accordance with other applicable ASBEs and accounts for the lease of the asset.
32. Exchange of Non-Monetary Assets
Where a non-monetary assets transaction satisfies the following conditions at the same time, it
should calculated based on fair value. The transaction is commercial in nature and the fair value
of the assets received or surrendered can be measured reliably. The fair value of the assets
surrendered and relevant payable taxes shall be regarded as the transaction cost of the assets
received. For assets surrendered, the difference between the fair value and the carrying value of
the asset surrendered shall be recorded into the profit or loss of the current period. If any exact
evidence showing that the fair value of the assets received is more reliable, the cost of assets
received and surrendered shall be calculated as different way. For assets received, its cost shall be
calculated based on fair value of assets received and relevant payable taxes. For the assets
surrendered, the difference between the fair value of the assets received and the carrying value of
the asset surrendered shall be recorded into the profit or loss of the current period.
Where a non-monetary assets transaction does not meet the conditions as prescribed, the carrying
value and relevant payable taxes of the assets surrendered shall be the cost of the assets received
and no profit or loss is recognized.
- 64 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
33. Discontinued Operation
Discontinued operation refers to the separately identifiable components that have been disposed
of or classified as held for sale and meet one of the following conditions:
(1) The component represents an independent main business or a major business area.
(2) This component is a part of a related plan that intends to dispose an independent main
business or a separate main operating area.
(3) This component is a subsidiary acquired exclusively for resale.
Profits or losses from discontinued operations are presented separately in the income statement
from continuing operations. Profits and losses from operations or disposals (e.g. impairment
losses and reversals of discontinued operations) are presented under discontinued operations. For
discontinued operations presented in the current period, the information previously under
continuing operations is presented under discontinued operations by the Group in the financial
statements for the comparable accounting period.
34. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost
jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14
February 2012 (filed as Cai Qi [2012] No. 16), safety production cost set aside by the Group is
directly included in the cost of relevant products or recognized in profit or loss for the period, as
well as the special reserve. When safety production cost set aside is utilized, if the costs incurred
can be categorized as expenditure, the costs incurred should be charged against the special
reserve. If the costs set aside are used to build up fixed assets, the costs should be charged to
construction in progress, and reclassified to fixed assets when the safety projects are ready for
intended use. Meantime, expenditures in building up fixed assets are directly charged against the
special reserve with the accumulated depreciation recognized at the same amount. Depreciation
will not be made in the future period on such fixed assets.
35. Share-based payments
A share-based payment is a transaction which the Group grants equity instruments, in return for
services rendered by employees or other parties. The Group's share-based payments include
equity-settled share-based payments.
Equity-settled share-based payments in exchange for services rendered by employees are
measured at the fair value of the equity instruments granted to employees at the grant date. Such
amount is recognized as related costs or expenses on a straight-line basis over the vesting period,
based on the best estimate of the number of equity instruments expected to vest; as related costs or
expenses at the grant date, if the equity instruments vest immediately, with a corresponding
increase in capital reserves.
- 65 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies as set out in Note (IV), the Company is required to make
judgments, estimates and assumptions about the carrying amounts of items in the financial
statements that cannot be measured accurately, due to the internal uncertainty of the operating
activities. These judgments, estimates and assumptions are based on historical experiences of the
Company's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.
The Company regularly reviews the judgments, estimates and assumptions on a going concern
basis. Changes in accounting estimates which only affect the current period should be recognized
in current period; changes which not only affect the current but the future periods should be
recognized in current and future periods. At the balance sheet date, key assumptions and
uncertainties that are likely to lead to significant adjustments to the book values of assets and
liabilities in the future are:
Goodwill impairment
For the purpose of impairment testing, the present value of the expected future cash flows of the
assets group or portfolio including goodwill shall be calculated, and such expected future cash
flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time
value of money on the current market and the specific interest risks.
Recognition of deferred income tax
The Group calculates and makes provision for deferred tax liabilities according to the profit
distribution plan of subsidiaries, associates and the joint ventures subject to the related law. For
retained earnings which are not allocated by the investment company, since the profits will be
used to invest the company's daily operation and future development, no deferred tax liabilities
are recognized. If the actually distributed profits in the future are more or less than those
expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of
profits distribution date and the declaration date, in the profit and loss of the current period.
Deferred tax assets are recognized based on the deductible temporary difference and the
corresponding tax rate, to the extent that it has become probable that future taxable profit will be
available for the deductible temporary difference. If in the future the actual taxable income does
not coincide with the amount currently expected, the deferred tax assets resulting will be
recognized or reversed in the period when actually incurred, in profit or loss.
- 66 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES - continued
Estimated useful lives and residual values of fixed assets and intangible assets
The Group assesses the estimated useful lives and residual values of its fixed assets and intangible
assets. Such assessment is made by reference to the historical experience of actual useful lives and
residual values of fixed assets and intangible assets of a similar nature and function, and may
subject to significant changes due to technical innovation and fierce industry competition. Where
the estimated useful lives and residual values of fixed assets and intangible assets are less than the
previous estimates, the Group will increase the depreciation and amortisation, or write off or
eliminate the technically obsolete fixed assets or intangible assets.
(VI) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Significant accounting policies and accounting changes
There are no significant accounting policies or accounting changes for the period.
(VII) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
Taxable income 15%-34% (Note 1)
Enterprise income tax
Dividend income tax 5%,10%,25% (Note 2)
Income from sale of goods 9%,13%
Income from transportation, loading and
Value-added Tax unloading business and part of modern 6%
("VAT") (Note 3) service industries
Income from sale of real estate, property
5%,9%
management, real estate lease, etc.
Social contribution tax (Note 4) Income 0.65%-7.6%
Deed tax Land use right and property transfer amount 3%-5%
Property tax 70% of cost of property or rental income 1.2% or 12%
City maintenance and
VAT paid 1%-7%
construction tax
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 2.4-12 per square meter
- 67 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VII) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated by
local tax laws. Among them, the Company are subject to an enterprise income tax rate of
25%, the subsidiaries set up in Hong Kong are subject to an enterprise income tax rate of
16.5%, the majority of subsidiaries set up in China are subject to an enterprise income tax
rate of 25% and certain others are subject to the preferential tax rate for small and micro
enterprises of 20%, certain domestic subsidiaries are subject to the preferential tax rate
for high-tech enterprises or encouraged industrial enterprises in the region of 15%, and
the other overseas subsidiaries are subject to enterprise income tax rates between 28%
and 34%.
Note 2: Foreign investors who receive dividends of profits from Chinese subsidiaries in 2008 and
thereafter generally shall pay withholding income tax at a rate of 10% in accordance with
the relevant provisions of the PRC enterprise income tax. For companies incorporated in
certain regions (including Hong Kong and Singapore), if the companies are actual owners
holding more than 25% interest in the subsidiaries in China, they will enjoy a preferential
tax rate of 5%.
The Company obtains dividends distributed by overseas subsidiaries and should pay
enterprise income tax at a rate of 25% in accordance with relevant Chinese tax laws. The
Company obtains taxable income outside of China, and the amount of income tax that has
been paid abroad can be offset with the current taxable amount. The credit limit is the
taxable amount calculated in accordance with the provisions of the Enterprise Income
Tax Law.
Note 3: The VAT amount is the balance of the output tax less the deductible input tax, and the
output tax is calculated in accordance with the sales income and the corresponding tax
rate stipulated in the relevant tax laws of China.
Note 4: The social contribution tax is the tax paid by the overseas subsidiary of the Group, TCP
Participaes S.A. ( hereinafter referred to as "TCP"), to the local government.
2. Tax preference
Some subsidiaries of the Group in China are recognized as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. The
Group's subsidiaries outside China may be subject to enterprise income tax preference in
accordance with relevant local tax policies.
From 1 January 2020 to 31 December 2022, the urban land use tax for the Group's some domestic
subsidiaries on the land for bulk commodity storage facilities is levied at the reduced rate of 50%
of the tax amount applicable to the grade of the land.
- 68 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item Closing balance Opening balance
Cash 317,164.88 501,446.73
RMB 2,767.60 20,504.26
USD 126,333.53 105,169.96
HKD 24,949.27 23,918.14
BRL 6,248.01 5,600.44
Others 156,866.47 346,253.93
Bank deposit (Note 1) 13,814,617,473.72 12,367,010,853.19
RMB 10,794,399,500.42 8,311,399,392.65
USD 1,310,905,935.45 1,481,370,545.88
EUR 825,041,546.18 708,753,319.34
BRL 603,075,959.55 273,845,734.48
HKD 209,075,345.34 1,567,048,304.98
AUD 4,334,680.40 3,805,872.65
Others 67,784,506.38 20,787,683.21
Other cash and bank balances (Note 2) 357,029,556.48 404,837,106.85
RMB 340,056,364.44 404,810,610.86
HKD 16,973,192.04 26,495.99
Total 14,171,964,195.08 12,772,349,406.77
Including: Total amount of funds deposited overseas 3,372,236,316.76 4,261,299,895.41
Note 1: The balance of interest receivable in bank deposits was RMB 17,050,647.14, and the bank
deposits of the Group deposited overseas and restricted for remittance to China at the end
of the year totalled nil.
Note 2: The balance of the securities margin account totalled RMB 24,568,763.54 in other cash and
bank balances at the end of the year, the principal of the time certificate of deposit in other
cash and bank balances that can be readily withdrawn on demand at the end of the year
totalled RMB 301,067,999.66, the interest of the time certificate of deposit totalled RMB
18,321,267.34, the restricted deposit totalled RMB 13,059,525.94, and the frozen funds of
ETC card business totalled RMB 12,000.00.
2. Held-for-trading financial assets
Item Closing balance Opening balance
Financial assets measured at fair value through profit or loss 5,272,909,312.13 6,921,831,502.55
Including: Debt investment instruments - -
Equity investment instruments 15760938 15719679
Structured deposits 5,272,751,702.75 6,921,674,305.76
Total 5,272,909,312.13 6,921,831,502.55
- 69 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
3. Notes receivable
(1) Classification of notes receivable
Category Closing balance Opening balance
Bank acceptance 2,645,000.00 6,081,611.95
Less: Provision for credit losses (Note) - -
Carrying amount 2,645,000.00 6,081,611.95
Note: The Group believes that the acceptor of its bank acceptance has high credit ratings with no
significant credit risks; therefore, no provision for credit loss is made.
(2) As at 30 June 2022, there are no notes receivable pledged.
(3) As at 30 June 2022, there are no notes receivable endorsed or discounted but unmatured at
the balance sheet date.
(4) As at 30 June 2022, there are no notes reclassified to accounts receivable due to the
drawers' inability to settle the note.
(5) For the period from 1 January to 30 June 2022, there are no notes receivable written off.
4. Accounts receivable
(1) Accounts receivable disclosed by aging
Closing balance
Aging
Accounts receivable Provision for credit loss Proportion (%)
Within 1 year 1,837,385,417.32 21,917,391.46 1.19
More than 1 year but not exceeding 2 years 26,307,676.10 7,794,161.27 29.63
More than 2 years but not exceeding 3 years 20,176,790.17 14,381,144.29 71.28
More than 3 years 41,272,756.97 40,651,168.05 98.49
Total 1,925,142,640.56 84,743,865.07
(2) Disclosure of accounts receivable by categories
Closing balance Opening balance
Credit Expected credit
Carrying Provision for Carrying Provision for
rating loss rate (%) Book value Book value
amount credit loss amount credit loss
A 0.00-0.10 940,788,118.44 613,095.65 940,175,022.79 768,959,184.29 195,963.28 768,763,221.01
B 0.10-0.30 654,166,427.12 942,569.40 653,223,857.72 436,073,607.05 1,088,792.71 434,984,814.34
C 0.30-50.00 273,952,750.46 27,340,671.73 246,612,078.73 146,604,738.15 32,286,595.88 114,318,142.27
D 50.00-100.00 56,235,344.54 55,847,528.29 387,816.25 55,590,039.99 53,078,639.80 2,511,400.19
Total 1,925,142,640.56 84,743,865.07 1,840,398,775.49 1,407,227,569.48 86,649,991.67 1,320,577,577.81
- 70 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(3) Changes in provision for credit loss of accounts receivable
Lifetime expected credit Lifetime expected credit
Item Total
loss (not credit-impaired) loss (credit-impaired)
Opening balance (Restated) 33,571,351.87 53,078,639.80 86,649,991.67
Carrying amount of accounts receivable at 1 January 2022
-- Transferred to credit-impaired
-1,192,476.04 1,192,476.04 -
accounts receivables
-- Reversed to not credit-impaired
- - -
accounts receivable
Provision for the period 46,968.36 1,187,240.89 1,234,209.25
Reversal for the period -3,838,666.13 - -3,838,666.13
Impact of foreign currency
309,158.72 389,171.56 698,330.28
statement translation
Closing balance 28,896,336.78 55,847,528.29 84,743,865.07
There are no accounts receivable written off during this period.
(4) The top five balances of account receivables classified by debtor
Proportion of the Closing balance of
Name of entity Closing balance Aging amount to the total provision for
accounts receivable (%) credit loss
Within 1 year; more than 1 year
but not exceeding 2 years; more
Client 1 173,509,071.41 9.01 223,802.09
than 2 years but not exceeding 3
years; more than 3 years
Within 1 year, more than 1 year
but not exceeding 2 years; more
Client 2 76,144,983.08 3.96 5,269.50
than 2 years but not exceeding 3
years
Within 1 year, more than 1 year
Client 3 75,023,858.80 3.90 25,670,997.40
but not exceeding 2 years
Within 1 year; more than 1 year
Client 4 48,326,865.38 2.51 6,257.82
but not exceeding 2 years
Client 5 48,159,528.65 Within 1 year 2.50 -
Total 421,164,307.32 21.88 25,906,326.81
5. Receivables financing
(1) Receivables financing classification
Item Closing balance Opening balance
Bank acceptance measured at fair value 191,399,515.52 238,429,402.71
(2) On 30 June 2022, the Group has no pledged receivables financing.
- 71 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
5. Receivables financing - continued
(3) As at 30 June 2022, receivables financing endorsed or discounted which are not yet due at
the balance sheet date are as follows
Closing balance Opening balance
Item
Derecognized Recognized Derecognized Recognized
Bank acceptance measured at fair value 79,889,314.46 - 153,044,339.75 -
6. Prepayments
(1) Aging analysis of prepayment
Closing balance Opening balance
Aging Provision for Provision for
Amount Proportion (%) impairment Amount Proportion (%) impairment
Within 1 year 64,312,319.17 97.42 - 51,121,689.93 99.06 -
More than 1 year but not exceeding 2
1,487,200.57 2.25 - 351,693.15 0.68 -
years
More than 2 years but not exceeding 3
189,800.25 0.29 - 109,329.76 0.21 -
years
More than 3 years 24,081.36 0.04 - 24,081.36 0.05 -
Total 66,013,401.35 100.00 - 51,606,794.20 100.00 -
(2) As at 30 June 2022, the Group has no significant prepayments aged more than one year.
(3) The top five balances of prepayments classified by entities
Proportion of the
Relationship
closing balance to
Name of entity with the Closing balance Aging Why unsettled
the total
Company
prepayments (%)
Unsettled prepaid
Entity 1 Non-related party 6,610,362.41 Within 1 year 10.01 communication
expenses
Unsettled advance
Entity 2 Non-related party 4,678,486.89 Within 1 year 7.09
premium
Unsettled advance
Entity 3 Non-related party 4,333,937.04 Within 1 year 6.57
labour expenses
Unsettled advance
Entity 4 Non-related party 3,529,904.26 Within 1 year 5.35
premium
Unsettled advance
Entity 5 Non-related party 2,941,400.00 Within 1 year 4.46
consulting fee
Total 22,094,090.60 33.48
7. Other receivables
7.1 Summary of other receivables
Item Closing balance Opening balance
Dividend receivable 1,727,561,836.95 264,626,493.85
Other receivables 506,747,690.21 431,650,102.02
Total 2,234,309,527.16 696,276,595.87
- 72 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.2 Dividend receivable
(1) Presentation of dividend receivable
Name of investee Closing balance Opening balance
Shanghai International Port (Group) Co., Ltd. ("Shanghai Port Group") 1,240,949,440.54 -
China Nanshan Development (Group) Incorporation ("Nanshan Group") 314,619,000.00 185,070,000.00
Liaoning Port Co., Ltd. (formally known as "Dalian Port Co., Ltd)."
73,133,008.80 -
("Liaoning Port")
Zhanjiang Merchants Port City Investment Co., Ltd.
41,847,044.77 41,847,044.77
("Merchants Port City")
Qingdao Port International Co., Ltd. 38,211,891.48 -
COSCO Logistics (Zhanjiang) Co., Ltd. 18,403,959.77 18,403,959.77
Tin-Can Island Container Terminal Ltd. - 19,076,909.00
Others 702,220.81 493,472.09
Total 1,727,866,566.17 264,891,385.63
Less: Provision for credit loss 304,729.22 264,891.78
Book value 1,727,561,836.95 264,626,493.85
(2) Significant dividend receivable aged more than 1 year
Impaired or not?
Name of
Closing balance Aging Opening balance Why unrecovered And basis of
investee
determination
Relevant procedures
More than 1 year are being handled and
Yes, expected
Nanshan Group 74,028,000.00 but not exceeding 74,028,000.00 it is expected to be
credit losses
2 years recovered by the end
of 2022
(3) Changes in provision for credit loss of dividends receivable
Stage 1 Stage 2 Stage 3
Item Expected credit Lifetime expected credit Lifetime expected credit Total
loss in 12 months loss (not credit-impaired) loss (credit-impaired)
Opening balance 264,891.78 - - 264,891.78
Carrying amount of dividend receivables at 1 January 2022
-- Transfer to Stage 2 - - - -
-- Transfer to Stage 3 - - - -
-- Reverse to Stage 2 - - - -
-- Reverse to Stage 1 - - - -
Provision for the period 39,837.44 - - 39,837.44
Reversal for the period - - - -
Transfer-out on derecognition
of financial assets (including - - - -
direct write-down)
Other changes - - - -
Closing balance 304,729.22 - - 304,729.22
- 73 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables
(1) Other receivables disclosed by aging
Closing balance
Aging Provision for
Other receivables Proportion (%)
credit loss
Within 1 year 348,641,928.83 3,439,245.38 0.99
More than 1 year but not exceeding 2 years 85,603,333.25 5,817,573.74 6.80
More than 2 years but not exceeding 3 years 457,837,123.77 456,131,922.11 99.63
More than 3 years 358,234,948.79 278,180,903.20 77.65
Total 1,250,317,334.64 743,569,644.43
(2) Disclosure of other receivables by nature
Item Closing balance Opening balance
Operation compensation (Note 1) 604,807,790.99 618,500,035.62
Temporary payments 347,390,243.76 260,222,250.12
Land compensation (Note 2) 89,630,000.00 89,630,000.00
Dedicated grants(Note 3) 32,484,730.00 24,800,000.00
Deposits 22,035,438.09 25,492,288.59
Compensation for profit or loss on transition - 6,347,258.89
Others 153,969,131.80 165,222,559.00
Total 1,250,317,334.64 1,190,214,392.22
Less: Provision for credit loss 743,569,644.43 758,564,290.20
Book value 506,747,690.21 431,650,102.02
Note 1: It is the operation compensation amounting to RMB 604,807,790.99 that the subsidiaries of
the Company should collect from the holding companies of minority shareholders. The
aforesaid amount has been overdue and is expected to be unrecoverable. As of 30 June 2022,
provision for credit loss of the amount has been fully made.
Note 2: On 9 October 2021, Zhanjiang Port (Group) Co., Ltd., (hereinafter referred to as the "
Zhanjiang Port "), subsidiary of the Company, entered into the Agreement on Recovery of
State-owned Land Use Rights with the People's Government of Xiashan District, Zhanjiang
Municipal. Pursuant to the Agreement, Zhanjiang Port shall return the land located in the
Zhanjiang Comprehensive Bonded Zone on the east of the Gangshu Avenue of
approximately 195.68 mu, which is amounting to RMB 89,630,000.00. The aforementioned
land was then returned before 31 December 2021. The net book value of the land was
RMB63,458,203.57, and the compensation gain recognized netting of transaction costs was
RMB26,126,981.43. As of 30 June 2022, the total land compensation not recovered
amounted to RMB89,630,000.00.
- 74 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(2) Disclosure of other receivables by nature - continued
Note 3: This represents the special subsidy of RMB 24,800,000.00 for public lighterage branch line
obtained by the Company's subsidiary Shantou CMPort Group Co., Ltd. ("Shantou Port")
in 2022 according to the Notice of Shantou Transportation Bureau and Bureau of
Commerce of Shantou Municipality on Continuation of the Policy of Subsidy for Heavy
Container Imports by Voyage and Special Subsidy for Shantou Public Lighterage Branch
Line. As of 30 June 2022, RMB 32,484,730.00 has not yet been received. This special
subsidy is closely related with the business of Shantou Port, and is taken as a component of
the consideration for provision of public lighterage branch line business.
(3) Provision for credit loss on other receivables
As part of the Group's credit risk management, the Group conducts internal credit ratings for its
customers and determines the expected loss rate for other receivables for each rating. Such expected
average loss rates are based on actual historical impairments while taking account of the current
and future economic conditions.
As at 30 June 2022, the credit risk and expected credit loss of other receivables of each category of
customers are presented as below:
Closing balance Opening balance
Expected Lifetime Lifetime Lifetime Lifetime
Credit rating credit loss Expected expected expected Expected expected expected
rate (%) credit loss in credit loss credit loss Total credit loss in credit loss credit loss Total
12 months (not credit- (credit- 12 months (not credit- (credit-
impaired) impaired) impaired) impaired)
A 0.00-0.10 504,978,977.76 - - 504,978,977.76 431,741,133.45 - - 431,741,133.45
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 745,338,356.88 745,338,356.88 - - 758,473,258.77 758,473,258.77
Account
504,978,977.76 - 745,338,356.88 1,250,317,334.64 431,741,133.45 - 758,473,258.77 1,190,214,392.22
balance
Provision
for credit 132,740.79 - 743,436,903.64 743,569,644.43 106,031.43 - 758,458,258.77 758,564,290.20
loss
Book value 504,846,236.97 - 1,901,453.24 506,747,690.21 431,635,102.02 - 15,000.00 431,650,102.02
Including: Significant other receivables for which the provision for credit loss is assessed
individually at the end of the period (credit rating of D)
Name Carrying amount Provision for credit loss ECL rate (%) Reasons for provision
Entity 1 604,807,790.99 604,807,790.99 100.00 Expected to be unrecoverable (Note)
Entity 2 105,540,511.80 103,643,609.29 98.20 Expected to be unrecoverable
Entity 3 14,000,000.00 14,000,000.00 100.00 Expected to be unrecoverable
Total 724,348,302.79 722,451,400.28 —— ——
Note: Refer to Note (VIII), 7.3(2) Note 1 for details.
- 75 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(4) Changes in provision, reversal and write-off for credit loss of other receivables
Stage 1 Stage 2 Stage 3
Expected Lifetime expected Lifetime expected
Item Total
credit loss in credit loss (not credit loss (credit-
12 months credit-impaired) impaired)
Opening balance 106,031.43 - 758,458,258.77 758,564,290.20
Carrying amount of other receivables at 1 January 2022
--Transfer to Stage 2 - - - -
--Transfer to Stage 3 -18,380.00 - 18,380.00 -
-- Reverse to Stage 2 - - - -
--Reverse to Stage 1 554,711.39 - -554,711.39 -
Provision for the period 86,687.80 - 20,650.27 107,338.07
Reversal for the period -596,309.83 - - -596,309.83
Impact of foreign currency
- - -14,505,674.01 -14,505,674.01
statement translation
Closing balance 132,740.79 - 743,436,903.64 743,569,644.43
(5) Changes in the carrying amount of other receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Carrying amount Expected credit Total
credit loss (not credit loss (credit-
loss in 12 months
credit-impaired) impaired)
Opening balance 431,741,133.45 - 758,473,258.77 1,190,214,392.22
Carrying amount of other
—— —— —— ——
receivables at 1 January 2021
-- Transfer to Stage 2 - - - -
-- Transfer to Stage 3 -28,581.00 - 28,581.00 -
-- Reverse to Stage 2 - - - -
-- Reverse to Stage 1 554,711.39 - -554,711.39 -
Increase for the year 66,869,966.63 - 1,896,902.51 68,766,869.14
Derecognition for the year - - - -
Other changes 5,841,747.29 - -14,505,674.01 -8,663,926.72
Closing balance 504,978,977.76 - 745,338,356.88 1,250,317,334.64
(6) The Group has no other receivables written off for the period from 1 January to 30 June
2022.
- 76 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(7) At the end of the year, the top five balances of other receivables classified by debtor are as
below:
Proportion of the Provision for credit
Name of entity Nature Closing balance Aging amount to the other loss at the end of
receivables (%) the period
More than 2 years but
Operation
Entity 1 604,807,790.99 not exceeding 3 years; 48.37 604,807,790.99
compensation
More than 3 years
Within 1 year ; More
Entity 2 Temporary payments 125,665,969.40 than 1 year but not 10.05 12,566.60
exceeding 2 years
Within 1 year; More
than 2 years but not
Entity 3 Temporary payments 105,540,511.80 8.44 103,643,609.29
exceeding 3 years; More
than 3 years
Entity 4 Land compensation 89,630,000.00 Within 1 year 7.17 8,963.00
Entity 5 Temporary payments 34,374,612.00 More than 3 years 2.75 3,437.46
Total 960,018,884.19 76.78 708,476,367.34
8. Inventories
(1) Categories of inventories
Closing balance Opening balance
Provision for Provision for
Item Carrying Carrying
decline in value Book value decline in value Book value
amount amount
of inventories of inventories
Raw materials 194,515,181.25 730,054.35 193,785,126.90 174,693,225.25 730,054.35 173,963,170.90
Goods on hand 12,714,372.72 - 12,714,372.72 6,576,244.72 - 6,576,244.72
Others 13,103,006.09 - 13,103,006.09 14,380,720.50 - 14,380,720.50
Total 220,332,560.06 730,054.35 219,602,505.71 195,650,190.47 730,054.35 194,920,136.12
(2) Provision for decline in value of inventories
Decrease
Item Opening balance Provision Closing balance
Reversal Write-off
Raw materials 730,054.35 - - - 730,054.35
(3) As at 30 June 2022, the Group has no capitalized borrowing cost in the balance of
inventories.
- 77 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
9. Assets held for sale
Book value at the Fair value at the Estimated
Item Estimated disposal time
end of the period end of the period disposal expenses
Long-term assets held for sale Expected to be relocated
337,442,757.28 1,380,876,000.00 31,475,777.36
(Note) and vacated in 2022
Less: Provision for impairment
- - -
of assets held for sale
Book value 337,442,757.28 - -
Note: See Note (VIII).12(1) for details.
10. Non-current assets due within one year
Item Closing balance Opening balance
Long-term receivables due within one year 134,845,633.36 102,458,920.89
Less: Provision for credit loss 134,845.63 102,458.92
Book value 134,710,787.73 102,356,461.97
11. Other current assets
(1) Categories of other current assets
Item Closing balance Opening balance
Prepaid taxes 50,046,904.17 64,390,050.80
Input tax to be deducted and to be certified 77,152,852.90 254,909,235.38
Others 10,778,516.56 20,385,011.23
Total 137,978,273.63 339,684,297.41
Less: Provision for credit loss - -
Book value 137,978,273.63 339,684,297.41
12. Long-term receivables
(1) Details of long-term receivables
Closing balance Opening balance
Item Provision for Provision for
Account balance Book value Account balance Book value
credit loss credit loss
Advances to
3,737,145,577.44 3,737,145.57 3,733,408,431.87 3,566,614,937.93 3,566,614.94 3,563,048,322.99
shareholders (Note 1)
Land compensation
2,692,032,000.00 - 2,692,032,000.00 2,692,032,000.00 - 2,692,032,000.00
receivable (Note 2)
Financing lease deposits 10,647,962.42 10,647.96 10,637,314.46 10,000,000.00 10,000.00 9,990,000.00
Total 6,439,825,539.86 3,747,793.53 6,436,077,746.33 6,268,646,937.93 3,576,614.94 6,265,070,322.99
Less: Long-term
receivables due 134,845,633.36 134,845.63 134,710,787.73 102,458,920.89 102,458.92 102,356,461.97
within 1 year
Long-term receivables
6,304,979,906.50 3,612,947.90 6,301,366,958.60 6,166,188,017.04 3,474,156.02 6,162,713,861.02
due over 1 year
- 78 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term receivables - continued
(1) Details of long-term receivables - continued
Note 1: It mainly represents the Company's receivable of aggregate principal and interest from
Terminal Link SAS, equivalent to RMB 2,857,982,404.36.
On 25 November 2019, the subsidiary of the Company, China Merchants Port Holdings
Company ("CMPort") has signed the shareholders' agreement with the associate Terminal
Link SAS and its shareholder CMA CGM S.A. According to this agreement, CMPort
intends to subscribe for mandatory convertible bonds of USD468 million and grant a loan
facility of USD500 million to Terminal Link SAS in order to support Terminal Link SAS'
acquisition plan of 10 target terminals. On 26 March 2020, the Company subscribed
mandatory convertible bonds, Meanwhile, Direct Achieve Investments Limited, a
subsidiary of the Company, provided a long-term loan to Terminal Link SAS for the
terminal acquisition project and charged interest to Terminal Link SAS at an annual
interest rate of 6%.
Note 2: On 5 November 2019, Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Shantou Land Reserve Center. Pursuant to the
contract, the land and attached buildings of approximately 370.96 mu located in Zhuchi
Deepwater Port on the south of Zhongshan East Road of Shantou should be returned to
Shantou Land Reserve Center by Shantou Port, which is amounting to RMB
1,558,032,000.00. Among them, 370.96 mu of land and attached buildings had been
transferred in 2019 and 2020 respectively. As at 30 June 2022, the land compensation
totalling RMB 1,158,032,000.00 has not yet been recovered.
On 21 August 2020, Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Land Reserve Center of Shantou Haojiang
District. Pursuant to the contract, the land and attached buildings of approximately 152.34
mu located in Yutianwen, Queshi, Haojiang District, Shantou, should be returned to Land
Reserve Center of Shantou Haojiang District by Shantou Port, which is amounting to
RMB250,000,000.00. The transfer of above-mentioned land and attached buildings was
completed before 31 December 2020. As at 30 June 2022, the land compensation
totalling RMB200,000,000.00 has not yet been recovered.
- 79 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term receivables - continued
(1) Details of long-term receivables - continued
Note 2: - continued
On 22 December 2020, Shantou Port entered into the Contract for the Acquisition of
State-Owned Land Use Rights in Shantou with Shantou Land Reserve Center. Pursuant to
the contract, the land and attached buildings of approximately 648.78 mu located in
Zhuchi Deepwater Port of Shantou should be returned to Shantou Land Reserve Center
by Shantou Port, which is amounting to RMB2,724,876,000.00. Among them, 320 mu of
land and attached buildings had been transferred by 31 December 2020, which is
amounting to RMB1,344,000,000.00. As at 30 June 2022, the land compensation totalling
RMB1,334,000,000.00 has not yet been recovered, and the remaining 328.78 mu of land
and attached buildings have not been transferred.
The intangible assets of the remaining 328.78 mu of land and attached buildings of
RMB212,552,105.91, fixed assets of RMB113,712,788.00 and investment properties of
RM B11,177,863.37 are presented as assets held for sale by the Group. In 2021, Shantou
Municipal Government revised the "Detailed Control Planning of Shantou Zhugang New
Town (Partial) - Zhuchigang Area", as the final plan has not yet been approved and
announced, Shantou Land Reserve Center delayed the transfer of the above 328.78 mu of
land originally planned to be completed in 2021 to 2022.
(2) Provision for credit loss on long-term receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item Expected credit loss Total
credit loss (not credit- credit loss (credit-
in 12 months
impaired) impaired)
Opening balance 3,576,614.94 - - 3,576,614.94
Carrying amount of long-term receivables at 1 January 2022
-- Transfer to Stage 2 - - - -
-- Transfer to Stage 3 - - - -
-- Reverse to Stage 2 - - - -
-- Reverse to Stage 1 - - - -
Provision for the period 171,178.59 - - 171,178.59
Reversal for the period - - - -
Transfer-out on
derecognition of financial
- - - -
assets(including direct
write-down)
Other changes - - - -
Closing balance 3,747,793.53 - - 3,747,793.53
(3) As at 30 June 2022, there are no long-term receivables derecognized due to the transfer of
financial assets.
(4) There are no assets and liabilities arising from the transfer or continuing involvement of
long-term receivables at 30 June 2022.
- 80 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Long-term equity investments
(1) Details of long-term equity investments
Changes for the year
Effect of
Investment Reconciling translation of Closing value of
Cash dividends or
Investee Accounting Opening balance profit or loss items from other Other equity Provision for financial Closing balance provision for
Increase Decrease profits announced Others
method under equity comprehensive movements impairment statements impairment
of issuance
method income denominated in
foreign currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. the equity method 2,371,538,986.74 - - 48,659,755.96 - - - - - 119,846,338.94 2,540,045,081.64 -
Port of Newcastle the equity method 1,959,683,621.36 - - 23,155,210.80 - - -4,629,739.95 - - 12,229,663.34 1,990,438,755.55 -
Qingdao Qianwan United
the equity method 1,490,513,461.30 - - 56,430,615.96 - 2,906,496.49 - - - - 1,549,850,573.75 -
Container Terminal Co., Ltd.
Yantai Port Group Laizhou
the equity method 791,515,741.44 - - 22,069,427.08 - - -29,259,207.08 - - - 784,325,961.44 -
Port Co., Ltd.
Others the equity method 1,926,751,947.80 644,082,328.97 -1,047,401.66 47,384,042.54 - 217,608.55 -927,626.29 - - 9,672,889.29 2,626,133,789.20 -
Subtotal 8,540,003,758.64 644,082,328.97 -1,047,401.66 197,699,052.34 - 3,124,105.04 -34,816,573.32 - - 141,748,891.57 9,490,794,161.58 -
II. Associates
Shanghai Port Group the equity method 28,843,807,383.69 1,894,169,292.91 - 2,960,021,044.89 -350,079,522.44 15,114,746.40 -1,240,949,440.54 - - - 32,122,083,504.91 -
Nanshan Group the equity method 6,329,051,540.40 - - 50,936,344.06 -27,939,921.03 3,662,895.45 -129,549,000.00 - - -136,141.78 6,226,025,717.10 -
Terminal Link SAS the equity method 6,037,993,057.12 - - 198,772,626.71 -23,678,950.12 - -380,851,746.67 - - 68,227,860.27 5,900,462,847.31 -
Liaoning Port (Note) the equity method 3,972,400,632.03 - - 83,953,806.32 40,093.35 3,768,835.51 -85,395,093.74 - - -1,885,732.57 3,972,882,540.90 338,331,990.24
Shenzhen China Merchants
Qianhai Industrial the equity method 7,306,935,034.12 - - 13,281,800.00 - - -122,444,928.51 - - - 7,197,771,905.61 -
Development Co., Ltd.
Ningbo Zhoushan Port
Company Limited the equity method 3,474,840,934.53 - - 125,568,457.33 -2,691,564.55 2,591,817.75 -75,825,289.44 - - -1,693,072.71 3,522,791,282.91 -
("Ningbo Zhoushan")
China Merchants Northeast
Asia Development Investment the equity method 1,016,048,532.69 - - 3,357,030.81 - - - - - - 1,019,405,563.50 -
Co., Ltd.
Others the equity method 4,832,370,951.30 3,300,000.00 -202,134,386.43 577,583,317.59 -41,796,740.96 355,006.29 -272,707,595.96 - - 192,013,632.51 5,088,984,184.34 2,203,345.92
Subtotal 61,813,448,065.88 1,897,469,292.91 -202,134,386.43 4,013,474,427.71 -446,146,605.75 25,493,301.40 -2,307,723,094.86 - - 256,526,545.72 65,050,407,546.58 340,535,336.16
Total 70,353,451,824.52 2,541,551,621.88 -203,181,788.09 4,211,173,480.05 -446,146,605.75 28,617,406.44 -2,342,539,668.18 - - 398,275,437.29 74,541,201,708.16 340,535,336.16
Note: Other equity movements refer to Note (VIII) 45 for details.
- 81 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Long-term equity investments - continued
(2) Changes in provisions for impairment losses of long-term equity investments
Decrease Effect of translation of
Effect of consolidation
Item Opening balance Increase foreign currency Closing balance
scope change Amount Reason statements
Liaoning Port 337,700,959.79 - - - - 631,030.45 338,331,990.24
HOA THUONG CORPORATION 2,135,644.39 - - - - 67,701.53 2,203,345.92
Total 339,836,604.18 - - - - 698,731.98 340,535,336.16
- 82 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Investments in other equity instruments
(1) Details of investments in other equity instruments
Investee Closing balance Opening balance
China Ocean Shipping Agency (Shenzhen) Co., Ltd. 144,998,784.69 144,998,784.69
Others 26,627,176.74 35,253,013.74
Total 171,625,961.43 180,251,798.43
(2) Details of non-trading equity instruments
Why transferred to
Dividends Amounts transferred
retained earnings
income Accumulated to retained earnings Why designated as
Item from other
recognized for gains/losses from other FVTOIC
comprehensive
the year comprehensive income
income
The intention of holding
China Ocean Shipping
- 131,488,784.69 - is neither for sale nor ——
Agency (Shenzhen) Co., Ltd.
profits in short-term
The intention of holding
Others 240,001.47 -89,418.00 7,513,669.91 is neither for sale nor ——
profits in short-term
Total 240,001.47 131,399,366.69 7,513,669.91
15. Other non-current financial assets
Item Closing balance Opening balance
Financial assets at FVTPL 818,869,293.22 809,515,244.87
Including: Investments in equity instruments 818,869,293.22 809,515,244.87
Including: Qingdao Port International Co., Ltd. 741,877,911.87 782,723,863.52
Others 76,991,381.35 26,791,381.35
16. Investment properties
(1) Investment properties measured under cost method
Item Land use rights Buildings Total
I. Total original carrying amount
1. Balance at 1 January 2022 114,634,546.67 6,181,503,172.76 6,296,137,719.43
2. Increase in the current period 9,878,501.55 - 9,878,501.55
(1) Purchase - - -
(2) Transfer from intangible assets 9,878,501.55 - 9,878,501.55
3. Balance at 30 June 2022 124,513,048.22 6,181,503,172.76 6,306,016,220.98
II. Accumulated depreciation and amortization
1. Balance at 1 January 2022 37,448,342.77 960,450,961.78 997,899,304.55
2. Increase in the current period 3,775,519.94 90,893,517.69 94,669,037.63
(1) Provision for the year 1,190,443.19 90,893,517.69 92,083,960.88
(2) Transfer from intangible assets 2,585,076.75 - 2,585,076.75
3. Balance at 30 June 2022 41,223,862.71 1,051,344,479.47 1,092,568,342.18
III. Impairment provision
1. Balance at 1 January 2022 - - -
2. Increase in the current period - - -
3. Decrease in the current period - - -
4. Balance at 30 June 2022 - - -
IV. Book value
1. At 30 June 2022 83,289,185.51 5,130,158,693.29 5,213,447,878.80
2. At 1 January 2022 77,186,203.90 5,221,052,210.98 5,298,238,414.88
- 83 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Investment properties - continued
(2) Investment properties without ownership certificates
Closing Opening Reasons for certificate of title not Expected time of
Item completed completion
balance balance
Some houses and buildings have not
Buildings, structures The certificate of title is
16,816,545.03 17,610,186.51 yet obtained certificates of land use
underway
and land use rights rights
17. Fixed assets
17.1 Summary of fixed assets
Item Closing balance Opening balance
Fixed assets 31,387,921,093.66 31,710,355,613.32
Disposal of fixed assets 216,523.40 157,616.97
Total 31,388,137,617.06 31,710,513,230.29
17.2 Fixed assets
(1) Details of fixed assets
Machinery and
Port and terminal equipment, furniture Motor vehicles and
Item Buildings Total
facilities and fixture and other cargo ships
equipment
I. Total original carrying amount
1. Balance at 1 January 2022 32,137,263,023.73 1,977,485,549.10 16,457,340,117.72 2,175,153,444.46 52,747,242,135.01
2. Increase for the period 140,052,403.23 465,140.47 192,899,081.23 5,277,352.87 338,693,977.80
(1) Purchase 24,060,509.21 7,069.00 54,742,470.41 3,721,416.20 82,531,464.82
(2) Transfer from development expenditure 16,652,277.54 - 13,388,200.52 - 30,040,478.06
(3) Transfer from construction in progress 99,339,616.48 458,071.47 124,768,410.30 1,555,936.67 226,122,034.92
3. Decrease for the period 23,849,062.28 - 19,502,900.34 6,726,385.88 50,078,348.50
(1) Disposal or retirement 10,939,226.82 - 19,502,900.34 6,726,385.88 37,168,513.04
(2) Adjustment to previously carried
12,909,835.46 - - - 12,909,835.46
forward amounts
4. Reclassification adjustment -57,706,048.66 - 57,706,048.66 - -
5. Effect of changes in foreign exchange 313,942,949.32 6,534,778.92 143,554,050.76 31,835,590.59 495,867,369.59
6. Balance at 30 June 2022 32,509,703,265.34 1,984,485,468.49 16,831,996,398.03 2,205,540,002.04 53,531,725,133.90
II. Accumulated depreciation
1. Balance at 1 January 2022 9,650,764,730.66 546,215,006.96 9,774,172,565.39 1,008,208,125.97 20,979,360,428.98
2. Increase for the period 489,910,678.86 42,910,460.68 409,955,400.68 50,963,867.40 993,740,407.62
(1) Provision 489,910,678.86 42,910,460.68 409,955,400.68 50,963,867.40 993,740,407.62
3. Decrease for the period 10,336,114.90 - 16,359,938.65 6,392,354.16 33,088,407.71
(1) Disposal or retirement 10,336,114.90 - 16,359,938.65 6,392,354.16 33,088,407.71
4. Reclassification adjustment -5,822,631.00 - 5,822,631.00 - -
5. Effect of changes in foreign exchange 61,222,836.34 1,658,145.48 75,399,575.92 7,984,960.90 146,265,518.64
6. Balance at 30 June 2022 10,185,739,499.96 590,783,613.12 10,248,990,234.34 1,060,764,600.11 22,086,277,947.53
III. Impairment provision
1. Balance at 1 January 2022 57,419,468.96 63,906.47 42,717.28 - 57,526,092.71
2. Increase for the period - - - - -
3. Decrease for the period - - - - -
4. Balance at 30 June 2022 57,419,468.96 63,906.47 42,717.28 - 57,526,092.71
IV. Book value
1. Book value at 30 June 2022 22,266,544,296.42 1,393,637,948.90 6,582,963,446.41 1,144,775,401.93 31,387,921,093.66
2. Book value at 1 January 2022 22,429,078,824.11 1,431,206,635.67 6,683,124,835.05 1,166,945,318.49 31,710,355,613.32
(2) The Group has no fixed assets that are temporarily idle as at 30 June 2022.
- 84 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Fixed assets - continued
17.2 Fixed assets - continued
(3) Fixed assets leased out under operating leases
Closing carrying Opening carrying
Item
amount amount
Buildings and structures 219,462,327.23 174,489,188.90
Port and terminal facilities 18,881,149.59 38,957,300.62
Machinery and equipment, furniture and fixture and
2,230,240.47 4,770,103.50
other equipment
Total 240,573,717.29 218,216,593.02
(4) Fixed assets without ownership certificates
Closing carrying Opening carrying
Item Remarks
amount amount
This is mainly due to the fact that
certain buildings and structures have
Buildings, structures, port and not yet obtained the land use rights
1,783,898,071.50 2,086,360,399.74
terminal facilities of the land for such fixed assets and
the approval procedures have not
yet been completed.
(5) Other issues
Item Closing balance Remark
Cost of fixed assets fully depreciated but still in use
4,454,101,371.37
as at the end of the period
Cost of fixed assets temporarily idle as at the end of the period -
Fixed assets disposed and retired for the period:
Including: Cost of fixed assets disposed and retired 37,168,513.04
Net value of fixed assets disposed and retired 4,080,105.33
Profit or loss on disposal or retirement of fixed assets -2,267,679.83
(6) As at 30 June 2022, the Group's fixed assets with restricted ownership refer to Note (VIII)
62 for details.
17.3 Disposal of fixed assets
Item Closing balance Opening balance
Machinery and equipment, furniture and fixture and
137,856.45 78,950.02
other equipment
Motor vehicles and cargo ships 78,666.95 78,666.95
Total 216,523.40 157,616.97
- 85 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Construction in progress
(1) Summary of construction in progress
Item Closing balance Opening balance
Construction in progress 2,608,459,726.04 2,543,631,289.59
Materials for construction of fixed assets 7,626,405.99 13,953,664.33
Total 2,616,086,132.03 2,557,584,953.92
(2) Details of construction in progress
Closing balance Opening balance
Item Carrying Provision for Carrying Provision for
Book value Book value
amount impairment amount impairment
Port and terminal facilities 2,210,318,462.33 - 2,210,318,462.33 2,177,670,930.47 - 2,177,670,930.47
Infrastructure 224,656,608.81 - 224,656,608.81 220,531,192.85 - 220,531,192.85
Berths and yards 11,473,491.01 - 11,473,491.01 15,718,097.89 - 15,718,097.89
Others 162,011,163.89 - 162,011,163.89 129,711,068.38 - 129,711,068.38
Total 2,608,459,726.04 - 2,608,459,726.04 2,543,631,289.59 - 2,543,631,289.59
- 86 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Construction in progress - continued
(3) The top ten balances of construction in progress
Proportion of Interest
Other Effect of Amount of Including:
accumulated Constructio capitalization
Increase for Transfer to decreases changes in accumulated capitalized
Item Budget amount Opening balance Closing balance construction n progress rate for the Capital source
the period fixed assets for the foreign capitalized interest for the
investment in (%) current period
period exchange interest period
budget (%) (%)
Reconstruction project of HIPG Self-funding and
2,784,594,837.99 876,374,998.71 - - - 43,712,771.24 920,087,769.95 57.68 57.68 889,944.03 - -
container, oil terminal and tank area loan
General cargo terminal project at
Self-funding and
Donghai Island Port Area of 905,348,400.00 399,676,589.24 130,283.02 - - - 399,806,872.26 44.16 44.16 44,364,372.49 - -
loan
Zhanjiang Port
Phase I expansion project for the
Self-funding and
container terminal at Baoman Port Area, 2,342,775,800.00 180,616,086.92 377,084.30 - - - 180,993,171.22 7.73 7.73 953,620.60 - -
loan
Zhanjiang Port
Reconstruction project for Yard 16# of Self-funding and
190,000,000.00 178,886,437.77 3,092,990.30 - - - 181,979,428.07 95.78 95.78 5,080,523.98 2,181,216.72 4.07
the bulk cargo terminal, Zhanjiang Port loan
Phase I project for the stuffing and
Self-funding and
destuffing service area of Baoman Port 606,521,505.83 133,198,536.39 727,323.19 - - - 133,925,859.58 22.08 22.08 16,689,500.56 - -
loan
Area, Zhanjiang Port
Haixing renovation project and others 328,695,727.99 49,007,114.23 17,890,434.48 30,244.25 - - 66,867,304.46 80.00 80.00 - - - Self-funding
Back land Reclamation Project on
Haidagan Bulk Yard and Supporting 60,140,000.00 59,111,396.60 209,277.60 - - - 59,320,674.20 99.00 99.00 - - - Self-funding
Facilities and Liquid Bulk Berth
Baoman Logistics Centre Project at Zhanjiang Port 608,535,600.00 55,668,801.93 - - - - 55,668,801.93 9.15 9.15 - - - Self-funding
28# Warehouse Relocation Project 67,670,000.00 47,477,624.53 2,477,064.22 - - - 49,954,688.75 73.82 73.82 - - - Self-funding
HIPG subsequent construction in progress at Han
80,220,000.00 45,847,449.95 10,662,347.90 17,906,126.76 495,645.69 2,039,273.70 40,147,299.10 60.00 60.00 - - - Self-funding
Port
Total 7,974,501,871.81 2,025,865,036.27 35,566,805.01 17,936,371.01 495,645.69 45,752,044.94 2,088,751,869.52 67,977,961.66 2,181,216.72
(4) Materials for construction of fixed assets
Closing balance Opening balance
Item Provision for Provision for
Carrying amount Book value Carrying amount Book value
impairment impairment
Materials for construction of fixed assets 7,626,405.99 - 7,626,405.99 13,953,664.33 - 13,953,664.33
- 87 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Right-of-use assets
(1) Details of right-of-use assets
Machinery and
equipment, Motor vehicles,
Port and terminal
Item Buildings furniture and Land use rights cargo ships and Total
facilities
fixture and other others
equipment
I. Cost
1. Balance at 1 January 2022 6,607,528,989.94 169,444,697.23 461,374,461.67 2,574,889,099.92 9,309,435.58 9,822,546,684.34
2. Increase for the period 140,918,274.68 - 7,054.25 17,330,062.14 10,283,003.25 168,538,394.32
(1) Purchase 140,918,274.68 - 7,054.25 17,330,062.14 10,283,003.25 168,538,394.32
3. Decrease for the period 556,587.70 3,877,939.06 1,368,474.70 - - 5,803,001.46
(1) Termination of lease 556,587.70 3,877,939.06 1,368,474.70 - - 5,803,001.46
4. Effect of changes in foreign
272,903,639.04 6,169,963.74 698,612.31 128,299,833.41 - 408,072,048.50
exchange
5. Balance at 30 June 2022 7,020,794,315.96 171,736,721.91 460,711,653.53 2,720,518,995.47 19,592,438.83 10,393,354,125.70
II. Accumulated depreciation
1. Balance at 1 January 2022 639,047,939.73 44,086,787.40 129,902,044.30 260,521,584.16 5,910,786.56 1,079,469,142.15
2. Increase for the period 122,988,891.16 9,435,050.88 14,135,804.70 24,573,773.17 2,885,635.26 174,019,155.17
(1) Provision 122,988,891.16 9,435,050.88 14,135,804.70 24,573,773.17 2,885,635.26 174,019,155.17
3. Decrease for the period 555,824.01 2,293,736.24 966,556.23 - - 3,816,116.48
(1) Termination of lease 555,824.01 2,293,736.24 966,556.23 - - 3,816,116.48
4 Effect of changes in foreign
21,920,355.36 1,106,028.67 504,673.20 13,554,848.28 - 37,085,905.51
exchange
5. Balance at 30 June 2022 783,401,362.24 52,334,130.71 143,575,965.97 298,650,205.61 8,796,421.82 1,286,758,086.35
III. Impairment provision
1. Balance at 1 January 2022 - - - - - -
2. Increase for the period - - - - - -
3. Decrease for the period - - - - - -
4. Balance at 30 June 2022 - - - - - -
IV. Book value
1. Book value at 30 June 2022 6,237,392,953.72 119,402,591.20 317,135,687.56 2,421,868,789.86 10,796,017.01 9,106,596,039.35
2. Book value at 1 January 2022 5,968,481,050.21 125,357,909.83 331,472,417.37 2,314,367,515.76 3,398,649.02 8,743,077,542.19
(2) Amount recognized in profit or loss
Amount incurred in
Category
the current period
Depreciation expenses of right-of-use assets (Note 1) 174,019,155.17
Interest expenses on lease liabilities (Note 2) 38,284,349.10
Expenses for short-term leases 29,143,920.78
Expenses for leases of low value assets 1,491,716.96
Variable lease payments not included in the
-
measurement of lease liabilities (Note 3)
Revenue from sublease of right-of-use assets 6,965,841.44
Note 1: No depreciation expenses of right-of-use assets are capitalized in the period from 1
January to 30 June 2022.
Note 2: No interest expenses of lease liabilities are capitalized in the period from 1 January to 30
June 2022.
Note 3: No variable lease payments were included in the measurement of lease liabilities in the
period from 1 January to 30 June 2022.
- 88 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Right-of-use assets - continued
(3) The total cash outflows in relation to leases for the period from 1 January to 30 June 2022
amounting to RMB 135,717,792.79.
(4) Lease assets of the Group with the lease term as follows:
Category Lease term
Port and terminal facilities 1-99 years
Buildings 1-5 years
Machinery and equipment, furniture and fixture and other equipment 1-6 years
Motor vehicles and cargo ships 1-5 years
Others 1-35 years
20. Intangible assets
(1) Details of intangible assets
Terminal
Item Land use rights Others Total
management rights
I. Total original carrying amount
1. Balance at 1 January 2022 14,631,047,267.00 8,239,023,292.58 1,303,728,681.52 24,173,799,241.10
2. Increase for the year 942,556.51 2,412,143.60 23,702,393.53 27,057,093.64
(1) Purchase 942,556.51 2,412,143.60 18,513,974.06 21,868,674.17
(2) Transfer from construction in progress - - 5,188,419.47 5,188,419.47
3. Decrease for the period 9,878,501.55 - - 9,878,501.55
(1) Disposal - - - -
(2) Transfer to investment properties 9,878,501.55 - - 9,878,501.55
4. Effect of changes in foreign exchange 8,822,821.60 333,056,568.11 50,184,028.91 392,063,418.62
5. Balance at 30 June 2022 14,630,934,143.56 8,574,492,004.29 1,377,615,103.96 24,583,041,251.81
II. Accumulated depreciation
1. Balance at 1 January 2022 3,711,905,647.14 1,519,335,933.88 467,145,279.15 5,698,386,860.17
2. Increase for the year 171,496,571.39 114,210,382.27 33,897,746.49 319,604,700.15
(1) Provision 171,496,571.39 114,210,382.27 33,897,746.49 319,604,700.15
3. Decrease for the period 2,585,076.75 - - 2,585,076.75
(1) Disposal - - - -
(2) Transfer to investment properties 2,585,076.75 - - 2,585,076.75
4. Effect of changes in foreign exchange 3,722,117.46 55,368,782.17 15,083,304.29 74,174,203.92
5. Balance at 30 June 2022 3,884,539,259.24 1,688,915,098.32 516,126,329.93 6,089,580,687.49
III. Impairment provision
1. Balance at 1 January 2022 - - - -
2. Increase for the period - - - -
3. Decrease for the period - - - -
4. Balance at 30 June 2022 - - - -
IV. Book value
1. Book value at 30 June 2022 10,746,394,884.32 6,885,576,905.97 861,488,774.03 18,493,460,564.32
2. Book value at 1 January 2022 10,919,141,619.86 6,719,687,358.70 836,583,402.37 18,475,412,380.93
- 89 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Intangible assets - continued
(2) Land use rights without ownership certificates on 30 June 2022:
Closing carrying Opening carrying
Item
amount amount
Land use rights(Note) 1,849,091,435.77 1,882,080,080.20
Note: At 30 June 2022, the land use rights without ownership certificates mainly represent the
land use rights for berth and storage yard within Chiwan Port area obtained by the Group
from Nanshan Group, with an area of 1,049,946.00 ㎡, and the land use rights for
Dachanwan Port area Phase II obtained by ASJ, of which the costs are RMB
1,400,288,984.00 and RMB 918,521,317.23 respectively.
The Group land use rights for berth and storage yard within Chiwan Port area obtained by
the Group from Nanshan Group represent the capital contribution from Nanshan Group to
the Company upon restructuring of the Company, while the remaining land use rights are
obtained from Nanshan Group by way of long-term lease. Up to date, as Nanshan Group
has not yet obtained the land use rights in respect of the lands within Chiwan watershed,
including aforementioned capital investment and land lease to the Group, therefore the
Group cannot obtain the ownership certificate for relevant land and buildings on such
land. The Company's management understood that the Nanshan Group is negotiating with
relevant government departments regarding the historical issues, and the date when the
Group can obtain the ownership certificate of relevant land and buildings on such land
cannot be estimated reliably.
- 90 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Development expenditure
Decrease in the current period
Opening Increase in the Transfer to Transfer to Transfer to profit Effect of changes
Item Transfer to fixed Closing balance
balance current period intangible construction in or loss for the in foreign
assets
assets progress period exchange
Portfolio ports project in Greater Bay Area - 32,372,197.77 - - - 32,372,197.77 - -
R&D of IoT application software system - 5,827,326.58 - - - 5,827,326.58 - -
R&D of port public information platform - 5,671,032.24 - - - 5,671,032.24 - -
R&D of intelligent gate system - 5,358,771.30 - - - 5,358,771.30 - -
Automation of RMG yard operation - 4,612,340.96 - - - 4,612,340.96 - -
Functionality enhancement project for the
- 4,200,601.25 - - - 4,200,601.25 - -
intelligent full-field transfer module for trailers
Development and update of wireless terminal
- 4,005,763.13 - - - 4,005,763.13 - -
production
R&D of remote-control RTG system for smash-
- 3,863,169.92 - - - 3,863,169.92 - -
proof safety protection of adjacent boxes
Smart port project - 3,412,971.63 - - - 3,412,971.63 - -
Smart gate project - 3,262,340.85 - - - 3,262,340.85 - -
R&D of autonomous safety protection system
- 3,078,355.71 - - - 3,078,355.71 - -
for gantry crane operation
Others 82,391,225.85 48,904,720.39 - - 30,040,478.06 39,168,307.16 - 62,087,161.02
Total 82,391,225.85 124,569,591.73 - - 30,040,478.06 114,833,178.50 - 62,087,161.02
- 91 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Goodwill
(1) Carrying amount of goodwill
Effect of
changes in
Investee Opening balance Increase Decrease Closing balance
foreign
exchange
TCP 2,329,133,573.36 - - 275,832,272.60 2,604,965,845.96
Mega Shekou Container Terminals Limited 1,815,509,322.42 - - - 1,815,509,322.42
CMPort 993,992,000.00 - - - 993,992,000.00
Shantou Port 552,317,736.65 - - - 552,317,736.65
Zhanjiang Port (Group) Co., Ltd. ("Zhanjiang
418,345,307.68 - - - 418,345,307.68
Port")
Shenzhen Mawan Project 408,773,001.00 - - - 408,773,001.00
Ningbo Daxie China Merchants International
188,497,194.41 - - - 188,497,194.41
Terminals Company Limited ("Ningbo Daxie")
Others 288,255,850.88 - - - 288,255,850.88
Total 6,994,823,986.40 - - 275,832,272.60 7,270,656,259.00
(2) Provision for impairments of goodwill
Effect of
changes in
Investee Opening balance Increase Decrease Closing balance
foreign
exchange
Zhanjiang Port 418,345,307.68 - - - 418,345,307.68
Shantou Port 552,317,736.65 - - - 552,317,736.65
Total 970,663,044.33 - - - 970,663,044.33
(3) Information of assets group or portfolio of assets group to which the goodwill belongs
The Group takes the ability to independently generate cash inflows, manage the way of
production and operation activities (mainly by geographic areas) and unified decision on the use
and disposal of the assets as the criteria to determine assets group or portfolio of assets group, and
performs impairment test of goodwill for the assets group or portfolio of assets group as
determined. As at 30 June 2022, the assets group or portfolio of assets group determined by the
Group include: TCP; Mega Shekou Container Terminals Limited, including Shekou Container
Terminals Ltd., Shenzhen Lianyunjie Container Terminals Co., Ltd., Anxunjie Container
Terminals (Shenzhen) Co., Ltd.; CMPort; Shantou Port; Zhanjiang port; Shenzhen Mawan
Project, including Shenzhen Mawan Port Waterway Co., Ltd., Shenzhen Magang Godown &
Wharf Co., Ltd. (hereinafter referred to as "Magang Godown & Wharf").
- 92 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Goodwill - continued
(4) Impairment test of goodwill and key parameters
When testing the goodwill for impairment, the Group compares the carrying amount of related
assets group and portfolio of assets group (including goodwill) with the recoverable amount. If the
recoverable amount is less than the carrying amount, the difference is included in profit or loss for
the period. The Group determines the recoverable amount of the assets group and portfolio of
assets group that generate goodwill at fair value less cost of disposal or at present value of
expected future cash flows. The fair value is determined using market approach. The present
value of cash flows is estimated based on the forecast of cash flows for 5 years to 27 years
detailed forecast period and subsequent forecast period. The estimated future cash flows for the
detailed forecast period are based on the business plan established by the management; the
expected future cash flows for the subsequent forecast period are determined in conjunction with
the level of the final year of the detailed forecast period, combined with the Group's business
plans, industry trends and inflation rates. The growth rate adopted will not exceed the long-term
average growth rate of the country where the assets group and portfolio of assets group are
located. The key assumptions used by the Group in estimating the present value of future cash
flows include growth rate and discount rate etc. The pre-tax discount rate and the growth rate for
subsequent forecasted period adopted for the period from 1 January to 30 June 2022 are around
10.75%-17.45% and 2.24%-3.00% respectively. The parameters of key assumptions determined
by the Group's management are in line with the Group's historical experience or external source of
information.
23. Long-term prepaid expenses
Opening balance Increase in the Amortization in Other Closing Reason for other
Item
(Restated) current period the current period changes balance changes
Tonggu channel widening
473,211,130.99 - 8,882,217.12 - 464,328,913.87
project (Note 1)
West port area public channel
252,759,769.78 - 3,320,513.98 - 249,439,255.80
widening project (Note 2)
Dredging project 76,591,867.23 - 6,557,400.42 - 70,034,466.81
Relocation project of Nanhai
38,661,479.90 - 553,684.20 - 38,107,795.70
Rescue Bureau
Leasehold improvement 20,786,525.04 6,913,245.53 1,385,481.07 - 26,314,289.50
Others 113,983,768.58 16,256,254.17 16,592,176.39 - 113,647,846.36
Total 975,994,541.52 23,169,499.70 37,291,473.18 - 961,872,568.04
Note 1: This represent the Group's actual expenses on the Shenzhen West Port Area Tonggu
Channel 210-270 Meters Widening Project. According to relevant resolutions of Shenzhen
municipal government, the expenses incurred for the 210-240 Meters Widening Project
are born by the enterprise and government on 60% to 40% principle, and the 240-270
Meters Widening Project are born by the enterprise and government on 50% to 50%
principle. The Company's subsidiary has included the expenses on deepening the channel
in the item of "long-term prepaid expenses", and amortized such expenses over the
expected useful life of 35 or 40 years using straight-line method since the completion of
the two widening projects in 2008 and 2019, respectively.
- 93 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
23. Long-term prepaid expenses - continued
Note 2: This represent the Group's actual expenses on the Shenzhen Western Port Area Public
Channel Widening Project, of which the widening of 240-270 meters in the first section
was completed on 1 June 2019 and the widening of 240-270 meters in the second and third
sections was completed on 5 November 2020. According to relevant resolutions of
Shenzhen Municipal Government, the expenses incurred for the project are born by the
enterprise and government on 50% to 50% principle. The Company's subsidiary has
included the expenses on deepening the channel in the item of "long-term prepaid
expenses", and amortized such expenses over the expected useful life of 40 years using
straight-line method since the completion of each section of the channel widening project.
24. Deferred income tax
(1) Deferred tax assets without offsetting
Closing balance Opening balance
Item Deductible temporary Deferred tax Deductible temporary Deferred tax
differences assets differences assets
Unrealized profit 766,887,701.51 187,276,045.72 769,833,723.80 187,934,375.63
Depreciation of fixed assets 174,288,428.11 38,493,103.34 174,310,058.63 38,498,510.97
Deductible losses 218,036,904.87 69,500,027.40 243,923,028.71 77,871,713.03
Provision for credit loss 134,776,259.10 22,673,991.19 134,107,345.89 22,607,019.97
Accrued and unpaid wages 132,072,868.68 31,869,261.11 133,228,573.09 32,069,398.58
Provisions 31,464,238.16 10,697,840.97 23,243,718.18 7,902,864.18
Deferred income 37,960,861.99 9,070,175.57 37,320,614.70 8,908,126.11
Amortization of computer 9,375,355.92 2,343,838.98 9,375,355.92 2,343,838.98
Organization costs 5,967,432.36 1,491,858.09 5,967,432.36 1,491,858.09
Provision for impairment losses of assets 3,858,354.37 964,588.59 3,858,354.37 964,588.59
Others 75,569,406.07 18,755,092.85 69,133,036.30 17,553,416.71
Total 1,590,257,811.14 393,135,823.81 1,604,301,241.95 398,145,710.84
(2) Deferred tax liabilities without offsetting
Closing balance Opening balance
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Withholding dividend income tax 33,952,749,050.88 2,384,965,556.04 32,834,363,823.45 2,276,809,099.05
Fair value adjustment of assets
7,824,115,963.67 1,784,128,784.33 7,922,514,263.15 1,794,717,729.81
acquired by business combination
Depreciation of fixed assets 896,683,494.88 240,925,764.77 855,120,746.48 226,223,855.58
Changes in fair value of other
454,720,002.54 94,786,979.94 478,483,648.29 99,590,902.64
non-current financial assets
Changes in fair value of other equity
131,488,784.68 32,872,196.17 138,988,784.68 34,747,196.17
investments
Others(Note) 1,161,023,182.22 122,937,763.19 1,101,926,283.77 118,328,687.36
Total 44,420,780,478.87 4,660,617,044.44 43,331,397,549.82 4,550,417,470.61
Note: This mainly represents the taxable temporary differences arising from the fair value
measurement of equity held by the Company's subsidiaries in Ningbo Zhoushan and the
corresponding deferred tax liabilities.
- 94 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
24. Deferred income tax - continued
(3) Deferred tax assets or liabilities presented at the net amount after offsetting
Offset amount of Deferred tax assets Offset amount of Deferred tax assets
deferred tax assets or liabilities after deferred tax assets or liabilities after
Item and liabilities in the offsetting in the and liabilities in the offsetting in the
current period current period prior period prior period
Deferred tax assets - 393,135,823.81 - 398,145,710.84
Deferred tax liabilities - 4,660,617,044.44 - 4,550,417,470.61
(4) Details of unrecognized deferred tax assets
Item Closing balance Opening balance
Deductible temporary differences 960,300,792.58 944,129,558.25
Deductible losses 2,025,029,572.67 2,197,937,158.38
Total 2,985,330,365.25 3,142,066,716.63
The Group recognizes deferred income tax assets to the extent of future taxable income that is likely
to be obtained to offset the deductible temporary differences and deductible losses. For the excess
of deductible temporary differences and deductible losses over future taxable income, no deferred
tax assets is recognized.
(5) Deductible losses for unrecognized deferred tax assets will be expired in the following years:
Year Closing balance Opening balance
2022 321,213,089.46 418,419,582.20
2023 522,929,889.68 568,545,269.63
2024 472,227,487.08 501,044,247.06
2025 384,408,840.73 385,310,677.29
2026 147,209,763.68 300,322,682.88
2027 159,703,180.88 -
No expiration date 17,337,321.16 24,294,699.32
Total 2,025,029,572.67 2,197,937,158.38
25. Other non-current assets
Item Closing balance Opening balance
Advances of channel project (Note) 977,777,293.63 965,997,076.71
Prepayments of fixed assets 269,079,919.43 66,519,391.16
Prepayments of land use rights 132,334,704.86 132,334,704.86
Prepayments of terminal franchise 27,594,981.06 28,084,523.57
Others 54,532,290.51 38,157,256.39
Total 1,461,319,189.49 1,231,092,952.69
Less: Impairment provision - -
Book value 1,461,319,189.49 1,231,092,952.69
- 95 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
25. Other non-current assets - continued
Note: This represent that the Company's subsidiary Zhanjiang Port, upon its reorganization into a
joint stock company in 2007, signed the Channel Arrangement Agreement with State-owned
Assets Supervision and Administration Commission of Zhanjiang ("Zhanjiang SASAC")
and China Merchants International Terminal (Zhanjiang) Co., Ltd. According to the
agreement, the channel belongs to Zhanjiang SASAC, therefore the Company included the
advances of channel project that should be repaid by Zhanjiang SASAC in other non-current
assets.
26. Short-term borrowings
(1) Classification of short-term borrowings
Item Closing balance Opening balance
Credit loan 14,281,113,052.95 12,450,169,472.03
Guaranteed loan (Note) 1,201,166,666.67 1,201,283,333.33
Total 15,482,279,719.62 13,651,452,805.36
Note: The loan is guaranteed by the Company.
(2) At 30 June 2022, the Group has no short-term borrowings that were overdue.
27. Notes payable
Category Closing balance Opening balance
Bank acceptance - -
Commercial acceptance 9,089,940.00 1,895,987.17
Total 9,089,940.00 1,895,987.17
28. Accounts payable
Item Closing balance Opening balance
Service fee 273,406,457.32 279,969,574.04
Material purchase 116,869,662.40 147,895,793.90
Construction fee 89,259,024.17 189,852,525.62
Equipment payments 24,795,168.16 34,478,229.18
Rental fee 7,049,888.69 6,226,422.72
Others 199,736,764.81 185,397,893.05
Total 711,116,965.55 843,820,438.51
- 96 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28. Accounts payable - continued
(1) Details of accounts payable are as follows:
Opening balance
Closing balance
(restated)
Aging
Proportion Proportion
Amount Amount
(%) (%)
Within 1 year (inclusive) 634,699,330.97 89.25 751,095,352.31 89.01
More than 1 year but not exceeding 2
years (inclusive)
41,647,226.45 5.86 58,151,929.86 6.89
More than 2 years but not exceeding 3
years (inclusive)
9,263,026.05 1.30 8,515,047.38 1.01
More than 3 years 25,507,382.08 3.59 26,058,108.96 3.09
Total 711,116,965.55 100.00 843,820,438.51 100.00
(2) Significant accounts payable aged more than one year
Item Amount Aging Reason for outstanding
The government planning project has not
Shenzhen Municipal Bureau of
21,642,795.50 More than 3 years been completed, and the certificates of
Land and Resources
property rights has not been processed.
29. Receipts in advance
Item Closing balance Opening balance
Rental fee received in advance 16,549,365.00 6,724,007.73
Administrative fee received in advance 3,216,243.41 2,163,886.70
Others 7,340,148.48 425,271.58
Total 27,105,756.89 9,313,166.01
(1) Aging analysis of receipts in advance
Closing balance Opening balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year(inclusive) 27,090,006.89 99.94 9,283,472.35 99.68
More than 1 year but not exceeding 2 years (inclusive) - - 13,943.66 0.15
More than 2 years but not exceeding 3 years (inclusive) - - - -
More than 3 years 15,750.00 0.06 15,750.00 0.17
Total 27,105,756.89 100.00 9,313,166.01 100.00
(2) There is no significant receipts in advance aged more than one year at 30 June 2022.
- 97 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
30. Contract liabilities
(1) Summary of contract liabilities
Item Closing balance Opening balance
Service fee received in advance 124,781,626.22 47,772,567.97
Port charges received in advance 67,974,723.73 122,718,356.71
Warehousing fee received in advance 13,536,530.43 15,698,102.34
Others 19,058,094.47 10,595,498.24
Total 225,350,974.85 196,784,525.26
Less: Contract liabilities recognised in other non-current
- -
liabilities
Book value 225,350,974.85 196,784,525.26
(2) Amounts of significant movements in carrying amount of contract liabilities for the year
and reasons thereof:
Item Movements Reason
Fulfilment of performance
Service fee received in advance 77,009,058.25 obligations
Fulfilment of performance
Port charges received in advance -54,743,632.98 obligations
Total 22,265,425.27
(3) There is no significant contract liabilities aged more than one year at 30 June 2022.
(4) Qualitative and quantitative analysis of contract liabilities
The contract liability mainly represents the amount received by the Group to provide port
services to customers. The payment is collected according to the contractual payment time.
The Group recognizes contract revenue based on the progress of the contract. The contract
liabilities will be recognized as income after the Group fulfills its performance obligations.
(5) Revenue recognized in the current period and included in the opening carrying amount of
contract liabilities
An amount of RMB 140,975,657.34 included in the book value of contract liabilities at the
beginning of the period has been recognized as revenue in the current year, including
contract liabilities arising from settled but unfinished construction resulting from the
contract of receipt of port charges in advance amounting to RMB 119,807,526.78, contract
liabilities arising from settled but unfinished construction resulting from the contract of
receipt of service fee in advance amounting to RMB 12,165,227.34, contract liabilities
arising from settled but unfinished construction resulting from the contract of receipt of
warehousing fee in advance amounting to RMB 6,693,697.67 as well as contract liabilities
arising from settled but unfinished construction resulting from other contracts amounting to
RMB 2,309,205.55.
- 98 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Employee benefits payable
(1) Details of employee benefits payable are as follows
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
1. Short-term benefits 808,913,314.49 1,646,317,477.64 1,710,267,801.10 744,962,991.03
2. Post-employment benefits
6,125,899.58 175,269,255.93 172,598,125.01 8,797,030.50
- defined contribution plan
3. Termination benefits 5,900,000.00 4,367,856.76 6,963,585.38 3,304,271.38
4. Other benefits due within
- 1,610,139.31 1,610,139.31 -
one year
5. Others -522,798.60 2,097,499.84 2,049,426.48 -474,725.24
Total 820,416,415.47 1,829,662,229.48 1,893,489,077.28 756,589,567.67
(2) Short-term benefits
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Wages and salaries, bonuses,
783,600,775.04 1,361,312,365.51 1,429,114,909.30 715,798,231.25
allowances and subsidies
II. Staff welfare - 65,824,626.77 61,768,820.07 4,055,806.70
III. Social insurance charges 9,058,171.24 89,872,103.65 89,200,780.73 9,729,494.16
Including: Medical insurance 7,678,856.08 76,377,973.19 75,913,162.66 8,143,666.61
Work injury insurance 47,248.95 7,926,243.98 7,925,902.68 47,590.25
Others 1,332,066.21 5,567,886.48 5,361,715.39 1,538,237.30
IV. Housing funds -74,747.24 93,795,256.89 93,563,731.80 156,777.85
V. Labor union and employee
16,412,863.40 22,029,732.67 23,705,082.98 14,737,513.09
education funds
VI. Other short-term benefits -83,747.95 13,483,392.15 12,914,476.22 485,167.98
Total 808,913,314.49 1,646,317,477.64 1,710,267,801.10 744,962,991.03
(3) Defined benefit plans
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Basic pension 5,795,491.40 134,348,034.87 133,040,828.75 7,102,697.52
II. Unemployment insurance 43,200.24 1,998,546.14 2,002,209.76 39,536.62
III. Enterprise annuity plan 287,207.94 38,922,674.92 37,555,086.50 1,654,796.36
Total 6,125,899.58 175,269,255.93 172,598,125.01 8,797,030.50
The Company and its subsidiaries participates in the social security contributions and the
unemployment insurance plan established by government institutions as required. According to
such plans, the Group contributes in proportion to the local government. Except for the above-
mentioned deposit fees, the Group have no outstanding contributions to be paid to the social security
contributions and the unemployment insurance plan. The corresponding expenses are included in
the current profit and loss or the cost of related assets when incurred.
- 99 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
32. Taxes payable
Item Closing balance Opening balance
Enterprise income tax 1,022,922,220.91 2,098,884,089.24
VAT 28,553,676.79 19,025,631.30
Others 92,015,700.53 44,809,531.14
Total 1,143,491,598.23 2,162,719,251.68
33. Other payables
(1) Summary of other payables
Item Closing balance Opening balance
Dividends payable 1,842,431,566.85 48,803,019.31
Other payables 1,642,654,215.34 2,091,305,321.77
Total 3,485,085,782.19 2,140,108,341.08
(2) Dividends payable
Item Closing balance Opening balance
Ordinary share dividends 1,842,431,566.85 48,803,019.31
Including: External entities (Note) 829,505,285.46 28,803,019.31
CHINA MERCHANTS UNION (BVI) LIMITED 510,276,268.24 -
Jingmao Guande Development Co., Ltd. 147,480,014.09 -
Ningbo Zhoushan 100,465,755.99 -
Zhanjiang Infrastructure Construction Investment Group Co.,
99,560,234.06 -
Ltd.
Hong Kong International Enterprises Co., Ltd. 77,735,005.59 -
Citic Port Invest Co., Ltd. 57,409,003.42 -
China Merchants Zhangzhou Development Zone Co., Ltd.
20,000,000.00 20,000,000.00
(Note)
Note: As at 30 June 2022, the dividends payable over one year include RMB 20,000,000.00 due
to China Merchants Zhangzhou Development Zone Co., Ltd., RMB 12,160,517.31 due to
Dalian Port Container Development Co., Ltd. (hereinafter referred to as "Dalian Port
Container"), RMB 3,972,477.39 due to Dalian Port Jifa Logistics Co., Ltd., which are
dividends not yet received by the investors.
(3) Other payables
(a) Disclosure of other payables by nature
Item Closing balance Opening balance
Amount payable for construction and quality warranty 588,429,555.63 821,093,777.44
Deposits 194,712,014.30 446,198,541.16
Customer discount (Note) 216,471,669.77 102,393,978.35
Accrued expenses 99,371,673.74 198,863,463.79
Port construction and security fee 58,680,124.37 59,026,576.51
Balance of land use rights transfer 11,295,700.00 11,295,700.00
Others 473,693,477.53 452,433,284.52
Total 1,642,654,215.34 2,091,305,321.77
Note: Refer to Note (VIII) 50 (3) for details.
- 100 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Other payables - continued
(3) Other payables - continued
(b) Significant other payables with aging over 1 year
Reason for being outstanding
Company name Closing balance Aging
or carried forward
The Second Engineering Company of CCCC More than 1 year but not To be paid upon confirmation by both
85,015,164.93
Fourth Harbor Engineering Co., Ltd. exceeding 2 years parties
More than 2 years but not
To be paid upon confirmation by both
Shenzhen Transportation Commission 79,639,296.08 exceeding 3 years; More than
parties
3 years
To be paid upon confirmation by both
Zhenhua Port Machinery Company Limited 34,239,544.52 More than 3 years
parties
To be paid upon confirmation by both
Shantou Municipal Transport Bureau 31,358,355.47 More than 3 years
parties
More than 1 year but not
exceeding 2 years; More than To be paid upon confirmation by both
Zhanjiang Municipal Transport Bureau 30,958,309.85
2 years but not exceeding 3 parties
years
More than 2 years but not Contractual settlement conditions have
Guangdong Jiaye Reserve Logistics Co., Ltd. 25,000,000.00
exceeding 3 years not been met
To be paid upon confirmation by both
Qingdao Maritime Safety Administration 20,713,982.12 More than 3 years
parties
More than 1 year but not
exceeding 2 years; More than Contractual settlement conditions have
China First Metallurgical Group Co., Ltd. 16,798,178.60
2 years but not exceeding 3 not been met
years; More than 3 years
Total 323,722,831.57
34. Non-current liabilities due within one year
Item Closing balance Opening balance
Long-term loans due within one year(Note VIII 36) 1,323,805,705.97 1,187,781,073.61
Including: Credit loan 460,874,553.85 399,437,084.19
Guaranteed loan 187,292,141.51 158,812,554.95
Mortgage and pledged loan 675,639,010.61 629,531,434.47
Bonds payable due within one year(Note VIII 37) 883,327,840.24 6,554,177,357.66
Lease liabilities due within one year(Note VIII 38) 374,351,389.39 298,117,295.41
Long-term payable due within one year(Note VIII 39) 144,065,314.37 139,696,643.49
Long-term employee benefits payable due within one year(Note
64,306,914.00 64,306,914.00
VIII 40)
Other non-current liabilities due within one year(Note VIII 43) 24,130,000.00 24,130,000.00
Total 2,813,987,163.97 8,268,209,284.17
35. Other current liabilities
Item Closing balance Opening balance
Short-term bonds payable 5,019,617,260.31 2,002,416,438.36
Accrued professional agency fee 125,096,529.17 128,664,439.94
Others 18,861,958.58 27,416,897.55
Total 5,163,575,748.06 2,158,497,775.85
- 101 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Other current liabilities - continued
Changes of short-term bonds payable:
Amount issued Interest accrued Discount or Repayment in
Term of the
Name of bond Face value Date of issue Amount of issue Opening balance in the current based on par premium the current Closing balance
bond
period value amortization period
2.45% RMB 2 billion Super & Short-term
2,000,000,000.00 2021-12-13 90 days 2,000,000,000.00 2,002,416,438.36 - 9,665,753.42 - 2,012,082,191.78 -
Commercial Paper
2.32% RMB 2 billion Super & Short-term
2,000,000,000.00 2022-1-17 90 days 2,000,000,000.00 - 2,000,000,000.00 11,383,890.41 - 2,011,383,890.41 -
Commercial Paper
2.15% RMB 1 billion Super & Short-term
1,000,000,000.00 2022-3-2 180 days 1,000,000,000.00 - 1,000,000,000.00 7,009,589.05 - - 1,007,009,589.05
Commercial Paper
2.13% RMB 2 billion Super & Short-term
2,000,000,000.00 2022-3-28 180 days 2,000,000,000.00 - 2,000,000,000.00 10,854,246.59 - - 2,010,854,246.59
Commercial Paper
2.00% RMB 2 billion Super & Short-term
2,000,000,000.00 2022-6-14 180 days 2,000,000,000.00 - 2,000,000,000.00 1,753,424.67 - - 2,001,753,424.67
Commercial Paper
Total 9,000,000,000.00 9,000,000,000.00 2,002,416,438.36 7,000,000,000.00 40,666,904.14 - 4,023,466,082.19 5,019,617,260.31
- 102 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Long-term borrowings
Range of year-
Item Closing balance Opening balance end interest rate
(%)
Credit borrowings 6,263,701,606.06 5,366,543,524.76 1.20%-4.80%
Guaranteed borrowings (Note 1) 982,862,131.51 1,076,679,935.08 1.20%-14.40%
Mortgage borrowings (Note 2) 1,654,283,225.04 1,889,397,484.66 3.41%-4.65%
Total 8,900,846,962.61 8,332,620,944.50 1.20%-14.40%
Less: Long-term borrowings due within one year 1,323,805,705.97 1,187,781,073.61 ——
Including: Credit borrowings 460,874,553.85 399,437,084.19 ——
Guaranteed borrowings 187,292,141.51 158,812,554.95 ——
Mortgage borrowings 675,639,010.61 629,531,434.47 ——
Long-term borrowings due after one year 7,577,041,256.64 7,144,839,870.89 ——
Note 1: The loan was guaranteed by Shenzhen Magang Cangma Co., Ltd, China Merchants Port
Services (Shenzhen) Co., Ltd, CMPort and Guangdong Zhanjiang Port Logistics Co.,
Ltd.
Note 2: As at 30 June 2022, the Group obtained the long-term loan of RMB1,654,283,225.04 (31
December 2021: RMB 1,889,397,484.66) with its entire equity in Colombo International
Container Terminals Limited (hereinafter referred to as "CICT") and Thesar Maritime
Limited (hereinafter referred to as "TML"), and the land use right, fixed assets and
construction in progress held by Guangdong Yide Port Co., Ltd. (hereinafter referred to
as "Yide Port"), the land use right of Shenzhen Haixing Harbor Development Co., Ltd.
(hereinafter referred to as "Shenzhen Haixing"), as well as the land with property right
and fixed assets of China Merchants Port (Zhoushan) RoRo Terminal Co., Ltd.
(hereinafter referred to as "Zhoushan RoRo Terminal"), mortgaged as collaterals.
Details of mortgage and pledged borrowings are as follows:
Company name Closing balance Opening balance Mortgages and pledges
China Development Bank Corporation 632,008,053.04 747,186,761.93 The Group's entire equity in CICT
International Finance Corporation 171,866,042.04 230,966,536.60
African Development Bank 78,914,741.50 106,074,913.93
Nederlandse Financierings-Maatschappij voor
65,027,311.28 87,410,830.23
Ontwikkelingslanden N.V.
The Opec Fund For International Development 55,704,747.06 74,876,376.58 The Group's entire equity in TML
Societe de Promotion et de Participation pour
55,743,903.11 74,932,105.74
la Cooperation Economique S.A.
Deutsche Investitions-und
46,420,373.79 62,397,008.21
Entwicklungsgesellschaft MBH
Land use rights of Shenzhen Haixing (see
Bank of China Qianhai Shekou Branch 284,443,029.75 241,370,822.03
Note (VIII) 62)
Land use rights, fixed assets and
China Construction Bank Shunde Branch 254,144,329.03 264,182,129.41 construction in progress of Yide Port (see
Note (VIII) 62)
Land use rights and fixed assets of
China Mingsheng Bank Zhoushan Branch 10,010,694.44 - Zhoushan RoRo Terminal (see Note
(VIII) 62)
Total 1,654,283,225.04 1,889,397,484.66
Note: See Note (VIII) 62 for the above mortgages and pledges.
- 103 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Bonds payable
(1) Bonds payable
Item Closing balance Opening balance
4.375%, USD 900 million corporate bond 6,109,537,705.29 5,814,296,318.30
5.000%, USD 600 million corporate bond 4,054,499,710.36 3,859,622,116.07
4.750%, USD 500 million corporate bond 3,398,249,302.86 3,236,350,690.37
4.000%, USD 500 million corporate bond 3,340,477,474.45 -
3.360%, RMB 2 billion corporate bond 2,065,911,232.87 2,032,587,397.26
3.520%, RMB 2 billion corporate bond 2,014,658,630.13 2,050,147,945.19
IPCA + 7.8164%, BRL 300 million corporate bond 542,021,815.00 438,789,671.67
5.000%, USD 500 million corporate bond - 3,207,848,098.69
4.890%, RMB 2.5 billion corporate bond - 2,585,407,534.25
Total 21,525,355,870.96 23,225,049,771.80
Less: Bonds payable due within one year 883,327,840.24 6,554,177,357.66
Bonds payable due after one year 20,642,028,030.72 16,670,872,414.14
- 104 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Bonds payable - continued
(2) Changes of bonds payable
Amount issued in Interest Discount or Repayment in Effect of changes
Term of
Name of bond Face value Date of issue Amount of issue Opening balance the current accrued based premium the current in foreign Closing balance
the bond
period on par value amortization period exchange
4.375%, USD 900 million corporate bond USD900,000,000.00 2018-08-06 5 years USD900,000,000.00 5,814,296,318.30 - 126,955,531.54 5,246,925.41 126,877,175.97 289,916,106.01 6,109,537,705.29
5.000%, USD 600 million corporate bond USD600,000,000.00 2018-08-06 10 years USD600,000,000.00 3,859,622,116.07 - 96,728,024.18 2,450,902.72 96,668,324.55 192,366,991.94 4,054,499,710.36
4.750%, USD 500 million corporate bond USD500,000,000.00 2015-08-03 10 years USD500,000,000.00 3,236,350,690.37 - 76,102,335.31 1,151,511.22 76,924,213.56 161,568,979.52 3,398,249,302.86
4.000%, USD 500 million corporate bond USD500,000,000.00 2022-06-01 5 years USD500,000,000.00 - 3,351,484,939.46 10,679,778.85 187,869.09 - -21,875,112.95 3,340,477,474.45
3.360%, RMB 2 billion corporate bond RMB2,000,000,000.00 2020-07-07 3 years RMB2,000,000,000.00 2,032,587,397.26 - 65,911,232.87 - 32,587,397.26 - 2,065,911,232.87
3.520%, RMB 2 billion corporate bond RMB2,000,000,000.00 2021-04-14 3 years RMB2,000,000,000.00 2,050,147,945.19 - 14,658,630.13 - 50,147,945.19 - 2,014,658,630.13
IPCA + 7.8164%, BRL 300 million
BRL 299,632,900.00 2016-11-07 6 years BRL 299,632,900.00 438,789,671.67 - 45,618,109.23 4,025,800.12 - 53,588,233.98 542,021,815.00
corporate bond
5.000%, USD 500 million corporate bond USD 500,000,000.00 2012-05-04 10 years USD 500,000,000.00 3,207,848,098.69 - 53,981,908.57 2,287,423.20 3,328,702,116.38 64,584,685.92 -
4.890%, RMB 2.5 billion corporate bond RMB 2,500,000,000.00 2017-04-21 5 years RMB 2,500,000,000.00 2,585,407,534.25 - 36,842,465.75 - 2,622,250,000.00 - -
Total 23,225,049,771.80 3,351,484,939.46 527,478,016.43 15,350,431.76 6,334,157,172.91 740,149,884.42 21,525,355,870.96
Less: Bonds payable due within one year 6,554,177,357.66 - - - - - 883,327,840.24
Bonds payable due after one year 16,670,872,414.14 - - - - - 20,642,028,030.72
- 105 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Lease liabilities
(1) Lease liabilities
Category Closing balance Opening balance
Lease payment 2,169,995,959.09 2,060,643,997.13
Unrecognized financing cost -735,464,192.26 -707,331,795.63
Total 1,434,531,766.83 1,353,312,201.50
Less: Lease liabilities due within one year 374,351,389.39 298,117,295.41
Lease liabilities due after one year 1,060,180,377.44 1,055,194,906.09
(2) Maturity of lease liabilities
Item Closing balance
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 439,406,737.60
2nd year subsequent to the balance sheet date 325,037,704.15
3rd year subsequent to the balance sheet date 78,604,527.55
Subsequent periods 1,326,946,989.79
Total 2,169,995,959.09
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
39. Long-term payables
(1) Summary of long-term payables
Item Closing balance Opening balance
Long-term payables 3,795,229,899.97 3,540,616,228.99
Special payables 18,004,727.43 21,259,780.90
Total 3,813,234,627.40 3,561,876,009.89
Less: Long-term payables due within one year 144,065,314.37 139,696,643.49
Long-term payables due after one year 3,669,169,313.03 3,422,179,366.40
(2) Long-term payables
Item Closing balance Opening balance
Terminal management rights (Note 1) 3,530,551,003.02 3,125,647,576.58
Payable to minority shareholders of subsidiaries (Note 2) 213,540,487.14 411,858,969.58
Others 51,138,409.81 3,109,682.83
Total 3,795,229,899.97 3,540,616,228.99
Less: Long-term payables due within one year 144,065,314.37 139,696,643.49
Long-term payables due after one year 3,651,164,585.60 3,400,919,585.50
- 106 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Long-term payables - continued
(2) Long-term payables – continued
Note 1: As at 12 August 2011, the Group reached a 35-year agreement of building, operation and
transfer with Sri Lanka Port Authority through a subsidiary CICT, on the building,
operation, management and development of the Colombo Port South Container Terminal
(hereinafter referred to as for "BOT"). The purchase amount of above-mentioned terminal
operating rights is determined by discounting the amount to be paid in the future using
the prevailing market interest rate according to the BOT agreement. As of 30 June 2022,
the amount payable for the purchase of terminal operation rights is RMB 822,335,311.18.
TCP, a subsidiary of the Company entered into a franchise agreement on the Port of
Paranaguáwith the Administration of the Ports of Paranaguá and Antonina- APPA
(hereinafter referred to the "APPA"). The agreement provides for an initial term of 25
years for the concessions. In April 2016, TCP and APPA entered into the Supplemental
Agreement, which extends the period to 50 years and will be expired in October 2048.
On 9 September 2021, TCP, a subsidiary of the Company, entered into a supplemental
agreement to the Lease Agreement with APPA for the concessions of the Ports of
Paranaguá and Antonina. Pursuant to which, the base figure for the calculation of
royalties for the Ports of Paranaguáand Antonina was adjusted from the Brazil IGP-M
Inflation Index("IGP-M index") to the Extended National Consumer Price Index("IPCA
index") of the Brazilian Institute of Geography and Statistics("IBGE"). In November
2021, TCP readjusted the royalties using the IPCA index. As at 30 June 2022, the amount
of royalty payable was RMB 2,708,215,691.84.
Note 2: It is an unsecured loan from minority shareholder of Thesar Maritime Limited, a subsidiary
of the Company, with an annual interest rate of 4.65%.
(3) Special payables
Increase in the Decrease in the
Item Opening balance Closing balance Reason
current period current period
Refunds of harbor
12,675,502.52 - 3,411,635.36 9,263,867.16 Note 1
construction fee
Employee housing fund 4,686,678.97 244,274.89 50.00 4,930,903.86 Note 2
Model worker
3,897,599.41 - 87,643.00 3,809,956.41
innovation studio
Total 21,259,780.90 244,274.89 3,499,328.36 18,004,727.43
Note 1: This represents the refund of the construction fee received by the Group from the Ministry
of Transport, Shenzhen Municipal Transportation Bureau. According to the "Port
Construction Fee Management Measures" promulgated by the Ministry of Finance, this
payment is dedicated to the construction of water transport infrastructure.
- 107 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Long-term payables - continued
(3) Special payables - continued
Note 2: This represent the repairing fund for public areas and public facilities and equipment
established after the Group's selling the public-owned house on the collectively allocated
land to employees. The fund is contributed by all the employees having ownership of the
house according to the rules, and is specially managed and used for specific purpose.
40. Long-term employee benefits payable
(1) Long-term employee benefits payable
Item Closing balance Opening balance
Post-employment benefits - net liabilities of defined
459,842,939.67 463,858,274.44
benefits plan
Termination benefits 67,348,606.72 71,467,335.47
Others (Note) 98,901,244.28 117,662,796.72
Total 626,092,790.67 652,988,406.63
Less: Long-term employee benefits payable due within one year 64,306,914.00 64,306,914.00
Long-term employee benefits payable due after one year 561,785,876.67 588,681,492.63
Note: It is the employee resettlement cost related to land acquisition and reserve of Shantou Port,
a subsidiary of the Company.
(2) Changes of defined benefits plan
Present value of defined benefits plan obligation:
Amount incurred in Amount incurred in
Item
the current period the previous period
I. Opening balance 463,858,274.44 429,830,989.42
II. Defined benefits cost included in profit or loss for the period 10,819,999.96 12,698,930.72
1. Current service cost 3,684,999.98 4,933,930.72
2. Past service cost - -
3. Interest adjustment 7,134,999.98 7,765,000.00
III. Defined benefits cost included in other comprehensive income -4,486.41 -200,890.65
1. Actuarial gains (losses) - -
2. Effect of exchange rate changes -4,486.41 -200,890.65
IV. Other changes -14,830,848.32 -14,847,531.25
1. Benefits paid -14,830,848.32 -14,847,531.25
V. Closing balance 459,842,939.67 427,481,498.24
The Company's subsidiaries provide the registered retirees and in-service staff with supplementary
post-employment benefit plans.
- 108 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
40. Long-term employee benefits payable - continued
(2) Changes of defined benefits plan - continued
The Group hired a third-party actuary to estimate the present value of its above-mentioned
retirement benefit plan obligations in an actuarial manner based on the expected cumulative welfare
unit method. The Group recognizes the Group's liabilities based on the actuarial results. The
relevant actuarial gains or losses are included in other comprehensive income and cannot be
reclassified into profit or loss in the future. Past service costs are recognized in profit or loss for the
period in which the plan is revised. The net interest is determined by multiplying the defined benefit
plan net debt or net assets by the appropriate discount rate.
41. Provisions
Effect of
Opening Increase for the Decrease for changes in
Item Closing balance Reason
balance year the year foreign
exchange
Pending litigation 2324371818 568812216 - 253239782 31,464,238.16 Note
Other 100358424 - 100358424 - -
Total 2424730242 568812216 100358424 253239782 31,464,238.16
Note: This represents the estimated compensation amount that the Company's subsidiary TCP may
need to pay due to the pending litigation.
42. Deferred income
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
Government grants 1,075,566,122.15 418,200.00 22,802,653.80 1,053,181,668.35
Unrealized sale-and-
391,762.76 - 259,468.68 132,294.08
leaseback income
Total 1,075,957,884.91 418,200.00 23,062,122.48 1,053,313,962.43
Items involving government grants are as follows:
Recognized in Other
Related to assets
Liabilities Opening balance Increase comprehensive Closing balance
/related to income
income
Refund from marine reclamation land 336,471,484.55 - 9,674,583.96 326,796,900.59 Related to assets
Tonggu channel widening project(Note) 262,314,289.68 - 3,599,086.76 258,715,202.92 Related to assets
Special subsidy for facilities and equipment 233,339,756.18 - 4,730,463.54 228,609,292.64 Related to assets
Western port area western public channel
208,661,435.58 - 2,719,858.14 205,941,577.44 Related to assets
widening project (Note)
Government subsidies for intelligent system 13,471,673.46 418,200.00 1,293,489.54 12,596,383.92 Related to assets
Refund of land transfer charges 6,301,466.61 - 133,600.02 6,167,866.59 Related to assets
Green low carbon port project 140,390.02 - 140,390.02 - Related to assets
Others 14,865,626.07 - 511,181.82 14,354,444.25 Related to assets
Total 1,075,566,122.15 418,200.00 22,802,653.80 1,053,181,668.35
Note: Refer to Note (VIII) 23 for details.
- 109 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Other non-current liabilities
Item Closing balance Opening balance
Actuarial expenses for pension treatment of staff in
179,619,999.98 176,939,999.96
Public Security Bureau (Note 1)
Berth priority call right (Note 2) 7,037,835.97 9,595,454.89
Others 1,121,355.99 660,123.68
Total 187,779,191.94 187,195,578.53
Less: Other non-current liabilities due within one year 24,130,000.00 24,130,000.00
Including: Actuarial expenses for pension treatment of
24,130,000.00 24,130,000.00
staff in Public Security Bureau (Note 1)
Other non-current liabilities due after one year 163,649,191.94 163,065,578.53
Note 1: Zhanjiang Port, a subsidiary of the Company, transferred the police station of Zhanjiang
Port to the People's Government of Zhanjiang in accordance with the Notice of Issuing
the Deepening Reform Plan for the Management System of Gotown Public Security (State
Commission Office of Public Sectors Reform [2017] No. 327) and the Notice of Issuing
the Reform Implementation Plan for the Management System of Gotown Public Security
(Yue Ji Bian Ban Fa [2018] No. 221). Policemen on the payroll of the original Zhanjiang
Port Police Station will be transitioned to be civil servants per national regulations, retired
policemen will be included in the scope of pension insurance of Zhanjian government
departments and public institutions, where the difference of pension benefits between the
original standard and the standard for policemen of Zhanjiang City (hereinafter referred
to as "difference of pension benefits") will be borne by Zhanjiang Port. Thus, Zhanjiang
Port made a provision of RMB 179,619,999.98 for the related liability.
Note 2: This represents the berth priority call right as agreed in the contract entered into with the
clients in 2003, with total amount of USD14 million. The Group must give priority to the
berthing requirements of the contracted customers during the contract period. The Group
amortized the berth priority right within 20 years using straight-line method. For the
period from 1 January to 30 June 2022, the amount included in operating income was
RMB 2,557,618.92.
- 110 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Share capital
Changes for the period
Capitalization
Item Opening balance New issue of Bonus Closing balance
of surplus Others Sub-total
share issue
reserve
For the period from 1 January to 30 June 2022
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person shares - - - - - - -
3. Other domestic shares 9,821.00 - - - -2,455.00 -2,455.00 7,366.00
4. Foreign shares 1,148,648,648.00 - - - - - 1,148,648,648.00
Total restricted tradable shares 1,148,658,469.00 - - - -2,455.00 -2,455.00 1,148,656,014.00
II. Non-restricted tradable shares
1. Ordinary shares denominated in - - -
593,820,070.00 325.00 325.00 593,820,395.00
RMB
2. Foreign capital shares listed - - -
179,886,585.00 2,130.00 2,130.00 179,888,715.00
domestically
3. Foreign capital shares listed - - - - - - -
overseas
4. Others - - - - - - -
Total non-restricted tradable shares 773,706,655.00 - - - 2,455.00 2,455.00 773,709,110.00
III. Total shares 1,922,365,124.00 - - - - - 1,922,365,124.00
Changes for the period
Capitalization
Item Opening balance New issue of Bonus Closing balance
of surplus Others Sub-total
share issue
reserve
For the year ended 31 December 2021
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person
- - - - - - -
shares
3. Other domestic shares 9,496.00 - - - 325.00 325.00 9,821.00
4. Foreign shares 1,148,648,648.00 - - - - - 1,148,648,648.00
Total restricted tradable shares 1,148,658,144.00 - - - 325.00 325.00 1,148,658,469.00
II. Non-restricted tradable shares
1. Ordinary shares denominated
593,820,070.00 - - - - - 593,820,070.00
in RMB
2. Foreign capital shares listed
179,886,910.00 - - - -325.00 -325.00 179,886,585.00
domestically
3. Foreign capital shares listed
- - - - - - -
overseas
4. Others - - - - - - -
Total non-restricted tradable shares 773,706,980.00 - - - -325.00 -325.00 773,706,655.00
III. Total shares 1,922,365,124.00 - - - - - 1,922,365,124.00
- 111 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
45. Capital reserve
Item Opening balance Increase Decrease Closing balance
For the period from 1 January to 30 June 2022
Capital premium 23,189,922,809.62 239,845,666.58 - 23,429,768,476.20
Including: Capital contributed by investors 7,012,992,483.94 - - 7,012,992,483.94
Differences arising from business combination
13,302,937,205.73 - - 13,302,937,205.73
involving enterprises under common control
Differences arising from acquisition of minority
1,215,209,939.74 239,845,666.58 - 1,455,055,606.32
interests(Note 1)
Others 1,658,783,180.21 - - 1,658,783,180.21
Other capital reserve 402,779,949.08 15,431,560.46 1,245,688.61 416,965,820.93
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting system
Share based payment without exercise(Note 2) 9,956,938.60 3,448,276.71 - 13,405,215.31
Other changes in owners' equity of the investee
under equity method other than changes in net
395,604,143.48 11,983,283.75 - 407,587,427.23
profit or loss, profit distribution and other
comprehensive income
Others - - 1,245,688.61 -1,245,688.61
Total 23,592,702,758.70 255,277,227.04 1,245,688.61 23,846,734,297.13
Note 1: The Company and its subsidiary, Port Development (Hong Kong) Co., Ltd., ("Port
Development (Hong Kong)) increased the holding of ordinary shares in CMPort, which
increased the capital reserve by RMB 239,845,666.58 in the current year. Refer to Note
(X) 2 for details.
Note 2: Refer to Note (XIV) 2 for details.
- 112 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
46. Other comprehensive income
Amount incurred in the period
Less: Amount included Less: Other
Post-tax income Post-tax income
in other comprehensive Less: comprehensive
Item Opening balance Pre-tax amount attributable to attributable to Closing balance
income in the prior Income tax income transfer to
for the period owners of the minority
periods transferred to expense capital reserve
Company shareholders
profit or loss this period
For the period from 1 January to 30 June 2022:
I. Other comprehensive income that will not be
81,233,996.26 -177,468,679.49 - 471,760.58 -76,728,084.39 -101,212,355.68 7,513,669.91 -3,007,758.04
reclassified subsequently to profit or loss
Including: Changes arising from remeasurement of
2,603,415.85 - - - - - - 2,603,415.85
defined benefits plan
Other comprehensive income that can't be
transferred to profit or loss under equity 2,643,088.68 -179,833,765.49 - - -78,616,754.21 -101,217,011.28 - -75,973,665.53
method
Changes in fair value of other equity
75,987,491.73 2,365,086.00 - 471,760.58 1,888,669.82 4,655.60 7,513,669.91 70,362,491.64
instruments
II. Other comprehensive income that will be reclassified
-971,359,314.44 619,669,556.34 - - 58,032,022.74 561,637,533.60 - -913,327,291.70
subsequently to profit or loss
Including: Other comprehensive income that may be
49,431,519.10 -266,312,840.26 - - -117,324,901.44 -148,987,938.82 - -67,893,382.34
transferred to profit or loss under equity method
Translation differences of financial statements
-1,020,790,833.54 885,982,396.60 - - 175,356,924.18 710,625,472.42 - -845,433,909.36
denominated in foreign currencies
Total other comprehensive income -890,125,318.18 442,200,876.85 - 471,760.58 -18,696,061.65 460,425,177.92 7,513,669.91 -916,335,049.74
For the year ended 31 December 2021:
I. Other comprehensive income that will not be
81,416,891.26 -11,657,252.55 - -398,211.33 -316,112.17 -10,942,929.05 -133,217.17 81,233,996.26
reclassified subsequently to profit or loss
Including: Changes arising from remeasurement of
11,318,269.18 -32,665,927.62 - - -8,714,853.33 -23,951,074.29 - 2,603,415.85
defined benefits plan
Other comprehensive income that can't be
transferred to profit or loss under equity -6,986,086.44 22,223,934.38 - - 9,495,957.95 12,727,976.43 -133,217.17 2,643,088.68
method
Changes in fair value of other equity
77,084,708.52 -1,215,259.31 - -398,211.33 -1,097,216.79 280,168.81 - 75,987,491.73
instruments
II. Other comprehensive income that will be reclassified
-908,114,194.32 -700,532,642.69 - - -60,790,651.33 -639,741,991.36 2,454,468.79 -971,359,314.44
subsequently to profit or loss
Including: Other comprehensive income that may be
31,725,280.52 42,635,389.45 - - 20,160,707.37 22,474,682.08 2,454,468.79 49,431,519.10
transferred to profit or loss under equity method
Translation differences of financial statements
-939,839,474.84 -743,168,032.14 - - -80,951,358.70 -662,216,673.44 - -1,020,790,833.54
denominated in foreign currencies
Total other comprehensive income -826,697,303.06 -712,189,895.24 - -398,211.33 -61,106,763.50 -650,684,920.41 2,321,251.62 -890,125,318.18
- 113 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Special reserve
Item Opening balance Increase Decrease Closing balance
For the period from 1 January to 30 June 2022
Production safety reserve 9,184,429.12 32,027,158.31 8,895,751.51 32,315,835.92
48. Surplus reserve
Item Opening balance Increase Decrease Closing balance
For the period from 1 January to 30 June 2022
Statutory surplus reserve 961,182,562.00 - - 961,182,562.00
49. Unappropriated profit
Proportion of
Item Amount appropriation or
allocation
For the period from 1 January to 30 June 2022
Unappropriated profit at the beginning of period before adjustment 14,205,879,106.49
Add: Adjustment of unappropriated profit at the beginning of the period -
Unappropriated profit at the beginning of period after adjustment 14,205,879,106.49
Add: Net profit attributable to shareholders of the Company for the period 1,981,861,324.62
Less: Appropriation to statutory surplus reserve -
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 826,617,003.32 Note
Pension Benefits -
Others -7,513,669.91
Unappropriated profit at the end of the period 15,368,637,097.70
Proportion of
Item Amount appropriation or
allocation
For the year ended 31 December 2021
Unappropriated profit at the end of prior year before adjustment 12,316,177,395.17
Add: Adjustment of unappropriated profit at the beginning of the year 12,942,703.53
Including: Changes in scope of consolidation of enterprises under common control 12,942,703.53
Unappropriated profit at the beginning of the period after adjustment (restated) 12,329,120,098.70
Add: Net profit attributable to shareholders of the Company for the year 2,685,829,204.07
Less: Appropriation to statutory surplus reserve 70,492,239.72
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 730,498,747.12
Pension benefits 3,525,104.12
Others 4,554,105.32
Unappropriated profit at the end of the year 14,205,879,106.49
- 114 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
49. Unappropriated profit - continued
Note : According to the resolution of 2021 shareholders meeting held on 21 April 2022, the
Company distributed cash dividends of RMB 4.30 (inclusive of tax) for every 10 shares,
totaling up to RMB 826,617,003.32 on the basis of the total shares of 1,922,365,124 shares
at the end of 2021.
50. Operating income and operating costs
(1) Operating income and operating costs
Amount incurred Amount incurred
Item in the current period in the prior period
Income Cost Income Cost
Principal operating 8,082,386,860.84 4,522,454,260.85 7,253,456,936.53 4,084,989,279.30
Other operating 68,075,506.35 114,914,620.80 86,485,925.73 113,461,884.97
Total 8,150,462,367.19 4,637,368,881.65 7,339,942,862.26 4,198,451,164.27
(2) Revenue from contracts
Bonded logistics
Categories of contracts Ports operation Other operation Total
operation
Mainland China, Hong Kong
5,943,495,002.29 188,618,709.21 68,075,506.35 6,200,189,217.85
and Taiwan area
- Pearl River Delta 3,437,254,973.24 117,533,542.53 68,075,506.35 3,622,864,022.12
- Yangtze River Delta 649,729,096.28 - - 649,729,096.28
- Bohai Rim 33,866,877.90 71,085,166.68 - 104,952,044.58
- Other areas 1,822,644,054.87 - - 1,822,644,054.87
Other countries 1,929,566,724.83 20,706,424.51 - 1,950,273,149.34
Total 7,873,061,727.12 209,325,133.72 68,075,506.35 8,150,462,367.19
(3) Description of performance obligations
The Group provides wharf service, bonded logistics service and other services. These services are
obligations performed over a period of time. For wharf services, as the handling time for
containers and bulk cargos is short, the management believes that it is not necessary to recognize
revenue according to the progress towards the completion of contract and it is an appropriate
method to recognize the fulfillment of performance obligation and revenue upon the completion
of the service. For bonded logistics service and other services, the customers evenly obtains and
consumes the economic benefits from the Group's performance of contract, meanwhile the
charging rules as agreed in the contract terms usually adopt daily/month/yearly basis. During the
process of rendering services, the Group recognizes revenue using straight-line method.
- 115 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
50. Operating income and operating costs - continued
(3) Description of performance obligations - continued
Part of the Group's handling contracts are established with discount terms, i.e. the customers
whose business volume reaches agreed level, are granted with preferential charge rate or discount.
At the end of the period, as the business quantity finally realized within the contract period is
uncertain, the contract consideration is subject to variable factors. The management included this
part of discount in other payables. The variable considerations arising from sales discount are not
included in the transaction. At the end of the year, the variable considerations arising from sales
discount are set out in Note (VIII) 33 (3).
51. Taxes and levies
Amount incurred Amount incurred
Item
in the current period in the prior period
Property tax 36,445,186.60 34,695,044.14
Land use tax 18,256,154.56 18,759,104.16
City construction and maintenance tax 4,410,503.24 4,645,878.43
Education surcharges and local education surcharges 3,271,326.62 3,499,847.04
Stamp duty 2,171,053.36 1,588,858.62
Others (Note) 70,960,315.69 24,482,902.09
Total 135,514,540.07 87,671,634.48
Note: Others are mainly: (1) 2 taxes, the Program of Social Integration and Contribution for the
Financing of Social Security and Tax on Services, with total amount of BRL 53,143,988.38
(equivalent to RMB 67,784,031.58) assumed by Company's subsidiary TCP in the current
period. The total amount is; and (2) the environmental protection tax of RMB 2,565,799.05
assumed by Zhanjiang Port, a subsidiary of the company, in the current period.
52. Administrative expenses
Amount incurred Amount incurred
Item
in the current period in the prior period
Employee's salary 602,477,006.88 571,878,311.76
Depreciation expenses 39,373,984.62 36,293,887.29
Amortization of intangible assets 28,961,337.07 31,103,215.97
Fees paid to agencies 35,451,603.67 21,580,976.43
Others 106,238,728.31 105,513,581.92
Total 812,502,660.55 766,369,973.37
- 116 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
53. Financial expenses
Amount incurred Amount incurred
Item
in the current period in the prior period
Interest expenses 1,117,272,966.05 894,059,966.10
Less: Capitalized interest expenses 14,559,885.48 43,265,921.33
Less: Interest income 212,820,789.37 183,191,011.93
Interest expenses of lease liabilities 38,284,349.10 41,716,504.99
Handling fee 12,011,540.57 8,429,111.68
Exchange differences 409,143,801.31 8,584,164.43
Others 2,613,065.49 3,776,199.94
Total 1,351,945,047.67 730,109,013.88
54. Other income
Amount incurred Amount incurred
Item
in the current period in the prior period
Subsidy for business development 31,566,099.04 251,275,221.00
Transferred from deferred income(Note VIII 42) 22,802,653.80 21,019,719.24
Additional deduction of VAT 14,149,044.01 12,256,071.53
Subsidy for business operation 8,918,543.30 2,158,465.47
Subsidy for job stabilization 4,738,985.48 13,934,992.63
Special fund for innovation 1,911,900.00 1,674,200.00
Refund of withholding tax 1,418,500.68 1,751,374.91
Others 1,975,098.34 1,912,213.84
Total 87,480,824.65 305,982,258.62
55. Investment income
(1) Details of investment income
Amount incurred Amount incurred
Item
in the current period in the prior period
Long-term equity investments income under equity method 4,211,173,480.05 3,557,359,417.25
Including: Long-term equity investments income of associated
4,013,474,427.71 3,462,322,244.32
enterprises under equity method
Including: Long-term equity investments income of joint
197,699,052.34 95,037,172.93
venture under equity method
Investment income from disposal of long-term equity investment -43,817.42 -
Investment income on held-for-trading financial assets 143,904,101.39 7,908,358.90
Investment income on other non-current financial assets - 40,188,401.29
Dividend income on other equity instruments 240,001.47 460,000.00
Interest income on debt investments - 3,827,414.15
Total 4,355,273,765.49 3,609,743,591.59
There is no significant restriction on the remittance of the Group's investment income.
- 117 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
55. Investment income - continued
(2) Details of long-term equity investments income under equity method
Amount incurred Amount incurred
Investee Reason for changes
in the current period in the prior period
Shanghai Port Group 2,960,021,044.89 2,327,928,232.22 Changes in net profit of investee
Port De Djibouti S.A 511,374,203.72 1,166,486.11 Changes in net profit of investee
Terminal Link SAS 198,772,626.71 182,473,114.97 Changes in net profit of investee
Ninbo Zhoushan 125,568,457.33 107,573,645.07 Changes in net profit of investee
Nanshan Group 50,936,344.06 560,718,761.21 Changes in net profit of investee
Liaoning Port 83,953,806.32 91,600,129.01 Changes in net profit of investee
Modern Terminals Limited 67,145,545.55 41,893,785.31 Changes in net profit of investee
Qingdao Qianwan United Container Terminal
56,430,615.96 30,849,525.86 Changes in net profit of investee
Co., Ltd.
Euro-Asia Oceangate S.àr.l. 48,659,755.96 35,657,835.28 Changes in net profit of investee
Shenzhen China Merchants Qianhai Industrial
13,281,800.00 108,224,200.00 Changes in net profit of investee
Development Co., Ltd.
Others 95,029,279.55 69,273,702.21 Changes in net profit of investee
Total 4,211,173,480.05 3,557,359,417.25
56. Gains(Losses) on changes in fair value
Amount incurred Amount incurred
Item
in the current period in the prior period
Held-for-trading financial assets 8,456,691.77 7,839.21
Other non-current financial assets -46,482,804.35 -45,536,366.63
Including: Financial assets at fair value through profit or loss -46,482,804.35 -45,536,366.63
Other non-current liabilities - -443,004,339.03
Including: Financial liabilities at fair value through profit
- -443,004,339.03
or loss
Total -38,026,112.58 -488,532,866.45
57. Gains(Losses) on impairment of credit
Amount incurred Amount incurred
Item
in the current period in the prior period
I. Gains(Losses) on impairment of credit of accounts receivable 2,604,456.88 -1,176,139.34
II. Gains(Losses) on impairment of credit of other receivables 449,134.32 -1,724,448.07
III. Gains(Losses) on impairment of credit of long-term
-171,178.59 314,255.21
receivables
Total 2,882,412.61 -2,586,332.20
- 118 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
58. Gains(Losses) on disposal of assets
Amount included in
Amount incurred Amount incurred
non-recurring profit
Item in the current in the prior
or loss for the
period period
current period
Gains(Losses) on disposal of non-current assets -207,276.37 9,432,717.92 -207,276.37
Including: Gains(Losses) on disposal of fixed assets -723,828.56 12,639,946.67 -723,828.56
Gains(Losses) on disposal of intangible - -3,516,976.79 -
Other income 516,552.19 309,748.04 516,552.19
59. Non-operating income
Amount included in
Amount incurred Amount incurred
non-recurring profit
Item in the current in the prior
or loss for the
period period
current period
Government grants 1,261,712.56 358,210.35 1,261,712.56
Insurance compensation received 375,097.87 325,396.51 375,097.87
Gains from scrapping of non-current assets 1,440,232.40 2,379,435.54 1,440,232.40
Compensation received for contracts violation 3,789,301.53 924,253.93 3,789,301.53
Exempted current accounts 4,634,628.05 1,365,449.42 4,634,628.05
Others 8,691,953.98 23,634,923.98 8,691,953.98
Total 20,192,926.39 28,987,669.73 20,192,926.39
60. Non-operating expenses
Amount included in
Amount incurred Amount incurred
non-recurring profit
Item in the current in the prior
or loss for the
period period
current period
External donations 231,477.20 526,437.28 231,477.20
Losses on retirement of non-current assets 2,984,083.67 7,080,879.70 2,984,083.67
Compensation, liquidated damages and
- 553,684.53 -
penalties
Litigation losses 16,732,991.55 4,265,352.56 16,732,991.55
Others 318,905.87 1,897,510.20 318,905.87
Total 20,267,458.29 14,323,864.27 20,267,458.29
61. Income tax expenses
Amount incurred Amount incurred
Item
in the current period in the prior period
Current tax expenses 553,914,215.26 596,520,712.86
Deferred tax expenses 71,729,502.16 46,917,882.26
Total 625,643,717.42 643,438,595.12
- 119 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
61. Income tax expenses - continued
Reconciliation of income tax expenses to the accounting profit is as follows:
Amount incurred
Item
in the current period
Accounting profit 5,505,627,140.65
Income tax expenses calculated at 25% 1,376,406,785.16
Effect of non-deductible cost, expenses and losses 118,798,305.95
Accrued income tax expenses 217,881,366.51
Effect of deductible temporary differences and deductible losses for which the deferred tax
70,318,343.37
assets are not recognized in current year
Effect of tax-free income (Note) -381,667,668.52
Effect of tax incentives and changes of tax rate -214,945,935.09
Effect of different tax rates of subsidiaries operating in other jurisdictions -515,800,679.73
Effect of utilizing deductible losses for which the deferred tax assets were not recognized
-45,782,521.71
in prior period
Effect of adjustments to prior-year income tax -2,650,876.87
Changes in the opening balance of deferred tax assets/ liabilities due to tax adjustments -
Others 3,086,598.35
Income tax expenses 625,643,717.42
Note: This mainly represents the tax effect on investment income from joint venture and associates.
62. Assets with restricted ownership or use right
Item Closing balance Opening balance
Equity investment in CICT (Note 1) 2,396,373,362.14 2,026,382,103.10
Fixed assets (Note 2) 272,372,129.67 278,015,952.68
Equity investment in TML (Note 1) 213,575,808.71 411,893,452.06
Intangible assets (Note 2) 209,640,890.21 212,232,642.30
Cash and bank balances (Note 3) 13,071,525.94 12,830,212.33
Construction in progress (Note 2) 11,748,467.79 12,388,924.87
Total 3,116,782,184.46 2,953,743,287.34
Note 1: Details of mortgaged equity and interests are set out in Note (VIII) 36.
Note 2: Yide Port mortgaged its land with property right, fixed assets and construction in progress
to obtain bank borrowings; Shenzhen Haixing mortgaged its land with property right to
obtain bank borrowings, Zhoushan RoRo Terminal mortgaged its land with property right
and fixed assets to obtain bank borrowings. Details of mortgage borrowings are set out in
Note (VIII) 36.
Note 3: Details of restricted cash and bank balances are set out in Note (VIII) 1.
- 120 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Other comprehensive income
Details are set out in Note (VIII) 46.
64. Items in cash flow statement
(1) Other cash receipts relating to operating activities
Amount incurred Amount incurred
Item
in the current period in the prior period
Government grants 42,016,594.20 271,313,303.29
Interest income 92,837,488.11 75,974,603.30
Guarantees and deposits 26,742,477.96 20,852,450.76
Rentals 2,869,149.16 4,157,219.40
Insurance compensation 1,210,988.68 1,932,522.06
Harbor construction fee and service charge refund - 124,986.79
Others 282,982,833.45 229,171,279.38
Total 448,659,531.56 603,526,364.98
(2) Other cash payments relating to operating activities
Amount incurred Amount incurred
Item
in the current period in the prior period
Advance payment 188,969,753.65 127,724,052.53
Operating expenses such as operating costs and administration
110,138,728.88 76,583,283.18
expense etc.
Guarantees and deposits 15,253,990.79 17,586,204.25
Harbour dues on cargo 6,923,999.90 6,404,202.74
Rentals 13,157,361.39 5,187,155.54
Port charges 3,234,003.82 4,837,252.74
Port construction fee - 252,673.92
Others 73,444,972.12 169,468,219.41
Total 411,122,810.55 408,043,044.31
(3) Other cash receipts relating to investing activities
Amount incurred Amount incurred
Item
in the current period in the prior period
Receipt of project advance interest 81,787,395.95 81,714,623.32
Recovery of project advance principal - 179,352,864.40
Recovery of loans - 9,462,511.39
Others 12,778,782.74 85,123,172.47
Total 94,566,178.69 355,653,171.58
- 121 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Items in cash flow statement - continued
(4) Other cash payments relating to investing activities
Amount incurred Amount incurred
Item
in the current period in the prior period
Taxes relating to land purchase and reserve paid to Antongjie
947,523,385.44 -
Terminal Storage Service (Shenzhen) Co., Ltd ("Antongjie")
Staff relocation costs relating to land purchase and reserve paid
18,761,552.44 11,284,795.93
to Shantou Port
Others 1,427,796.54 104.00
Total 967,712,734.42 11,284,899.93
(5) Other cash receipts relating to financing activities
Amount incurred Amount incurred
Item
in the current period in the prior period
Receipt of leaseback payments 50,000,000.00 -
Others 2,897,609.21 -
Total 52,897,609.21 -
(6) Other cash payments relating to financing activities
Amount incurred Amount incurred
Item
in the current period in the prior period
Rental payments 129,259,179.22 161,265,078.92
Amounts paid by the Company to acquire equity of minority
74,787,051.66 -
interests
Payments for financing costs 16,628,834.22 982,254.76
SINOSURE insurance premium paid for the loans from China
2,352,053.94 1,748,638.84
Development Bank
Dalian Port Logistics Network Co., Ltd. ("Port Logistics") - 8,748,637.26
Others 1,950,000.00 16,977.03
Total 224,977,119.04 172,761,586.81
- 122 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Amount incurred Amount incurred
Supplementary information
in the current period in the prior period
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 4,879,983,423.23 4,264,261,244.83
Add: Provision for impairment losses of assets - -
Provision for impairment losses of credit -2,882,412.61 2,586,332.20
Depreciation of fixed assets 993,740,407.62 914,300,614.45
Depreciation of investment property 92,083,960.88 94,835,428.40
Depreciation of right-of-use assets 174,019,155.17 166,527,483.26
Amortization of intangible assets 319,604,700.15 303,613,191.00
Amortization of long-term prepaid expenses 37,291,473.18 23,468,890.89
Losses (gains) on disposal of fixed assets, intangible
207,276.37 -9,432,717.92
assets and other long-term assets
Losses on retirement of fixed assets, intangible assets
1,543,851.27 4,701,444.16
and other long-term assets
Losses on changes in fair value 38,026,112.58 488,532,866.45
Financial expenses 1,456,795,942.93 799,077,760.88
Investment income -4,355,273,765.49 -3,609,743,591.59
Decrease (increase) in deferred tax assets 5,009,887.03 -69,535,313.14
Increase in deferred tax liabilities 5,429,041.83 116,453,195.40
Decrease (increase) in inventories -24,682,369.59 4,815,029.15
Increase in operating receivables -487,958,209.89 -1,125,312,552.90
Increase in operating payables 88,312,702.43 565,811,102.44
Net cash flows from operating activities 3,221,251,177.09 2,934,960,407.96
2. Significant investing and financing activities that do not
involve cash receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
Fixed assets under finance lease - -
3. Net changes in cash and cash equivalents:
Closing balance of cash 14,123,520,754.66 9,347,523,070.31
Less: Opening balance of cash 12,727,355,238.36 11,898,618,327.29
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase (decrease) in cash and cash equivalents 1,396,165,516.30 -2,551,095,256.98
(2) Cash and cash equivalents
Item Closing balance Opening balance
I. Cash 14,123,520,754.66 12,727,355,238.36
Including: Cash on hand 317,164.88 501,446.73
Bank deposits 13,797,566,826.58 12,353,104,402.58
Other monetary funds 325,636,763.20 373,749,389.05
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 14,123,520,754.66 12,727,355,238.36
- 123 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Foreign currency monetary items
Closing balance of Closing amount
Item Exchange rate
original currency in RMB
Cash and bank balances
Including: HKD 46,141,253.16 0.8517 39,298,505.32
USD 131,054,751.49 6.6850 876,101,013.71
EUR 116,507,279.06 7.0643 823,042,371.46
RMB 90,541,744.00 1.0000 90,541,744.00
Accounts receivable
Including: HKD 1,125,943.66 0.8517 958,966.22
USD 6,597,534.73 6.6850 44,104,519.67
EUR 20,928,240.21 7.0643 147,843,367.32
Other receivables
Including: HKD 97,795,500.00 0.8517 83,292,427.35
USD 106,814,871.25 6.6850 714,057,414.31
EUR 3,579,814.27 7.0643 25,288,881.95
RMB 668,251,139.23 1.0000 668,251,139.23
Other non-current assets
Including: EUR 3,891,433.75 7.0643 27,490,255.44
Short-term borrowings
Including: HKD 800,000,000.00 0.8517 681,360,000.00
USD 45,000,000.00 6.6850 300,825,000.00
RMB 2,922,260,000.00 1.0000 2,922,260,000.00
Accounts payable
Including: HKD 1,366,414.90 0.8517 1,163,775.57
EUR 4,342,355.57 7.0643 30,675,702.45
RMB 300,000.00 1.0000 300,000.00
Other payables
Including: HKD 39,816,067.41 0.8517 33,911,344.61
USD 68,594,172.22 6.6850 458,552,041.29
EUR 130,927,404.23 7.0643 924,910,461.70
RMB 9,636,097.68 1.0000 9,636,097.68
Non-current liabilities due within one year
Including: USD 9,571,030.80 6.6850 63,982,340.88
Long-term borrowings
Including: USD 209,200,000.00 6.6850 1,398,502,000.00
EUR 66,937,500.00 7.0643 472,866,581.25
RMB 670,000,000.00 1.0000 670,000,000.00
Bonds payable
Including: USD 2,489,458,194.57 6.6850 16,642,028,030.72
Long-term payables
Including: HKD 4,204,746,793.15 0.8517 3,581,182,843.73
- 124 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Government grants
(1) New government grants for the period
Amount included in
Type Amount Item Account profit or loss for
the period
Related to income 31,566,099.04 Subsidy for business development Other income 31,566,099.04
Related to income 8,918,543.30 Subsidy for business operation Other income 8,918,543.30
Related to income 4,738,985.48 Subsidy for job stabilization Other income 4,738,985.48
Related to income 1,911,900.00 Special fund for innovation Other income 1,911,900.00
Related to income 1,975,098.34 Others Other income 1,975,098.34
Related to income Non-operating
1,261,712.56 Others 1,261,712.56
income
Government subsidies for Deferred
Related to assets 418,200.00 -
intelligent system income
Total 50,790,538.72 50,372,338.72
68. Lease
(1) Lessor under operating lease
Item Amount
I. Revenue
Lease income 205,040,580.07
Including: Income related to variable lease payments that are not included
-
in lease receipts
II. Undiscounted lease receipts received after the balance sheet date
1st year 304,563,408.38
2nd year 161,760,881.59
3rd year 124,886,289.84
4th year 110,117,020.83
5th year 104,050,301.27
Over 5 years 254,322,257.57
Note: The operating leases where the Group as the lessor are related to port and terminal
facilities, machinery equipment, vehicles, land and buildings, with lease terms ranging
from 1 days to 50 years and option to renew the lease of port and terminal facilities,
machinery equipment, land and buildings. The Group considers that as the leased assets
are properly used, the unguaranteed balance of such assets does not constitutes material
risk of the Group.
- 125 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Lease - continued
(2) Lessee
Item Amount
Interest expense on lease liabilities 38,284,349.10
Short-term lease expenses that are accounted for using simplified approach
29,143,920.78
and included in cost of related assets or profit or loss for the period
Expenses on lease of low-value assets (exclusive of expenses on short-term lease
of low-value assets) that are accounted for using simplified approach and included in 1,491,716.96
cost of related assets or profit or loss for the period
Variable lease payments that are included in cost of related assets or profit or loss
-
but not included in measurement of lease liabilities
Including: the portion arising from sale and leaseback transactions -
Income from sub-lease of right-of-use assets 6,965,841.44
Total cash outflows relating to lease 135,717,792.79
Profit(loss) arising from sale and leaseback transactions 667,508.53
Cash inflows from sale and leaseback transactions 50,000,000.00
Cash outflows from sale and leaseback transactions 110,818,330.25
Others -
(IX) CHANGES IN SCOPE OF CONSOLIDATION
1. Business combination not involving enterprises under common control
The Group has no business combination not involving enterprises under common control
in the current period.
2. Business combination involving enterprises under common control
The Group has no business combination involving enterprises under common control in
the current period.
3. Reverse purchase
The Group has no reverse purchase in the current period.
4. Disposal of subsidiary
There is no loss of control over the disposal of subsidiary investment in the Group in the
current period.
5. Changes in scope of consolidation for other reasons
The Group has no changes in scope of consolidation for other reasons other than the
establishment of new subsidiaries in the current period.
- 126 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
Proportion of
Registered capital
Principal place ownership
Name of the subsidiary Place of incorporation Nature of business (RMB'0000, unless Acquisition method
of business interest (%)
otherwise specified)
Direct Indirect
Shenzhen Chiwan International Freight Investment establishment
Shenzhen, PRC Shenzhen, PRC Logistics support services 550.00 100.00 -
Agency Co., Ltd.
Chiwan Wharf (Hong Kong) Co., Ltd. Investment establishment
Hong Kong, PRC Hong Kong, PRC Investment holding HKD1,000,000.00 100.00 -
("Chiwan Wharf (Hong Kong) ")
Dongguan Chiwan Warf Co., Ltd. Dongguan, PRC Dongguan, PRC Logistics support services 45,000.00 85.00 - Investment establishment
Dongguan Chiwan Terminal Co., Ltd. Dongguan, PRC Dongguan, PRC Logistics support services 40,000.00 100.00 - Investment establishment
Business combination
Shenzhen Chiwan Harbor Container Co. Ltd. Shenzhen, PRC Shenzhen, PRC Logistics support services 28,820.00 100.00 - involving enterprises under
common control
Business combination
Shenzhen Chiwan Port Development Co.,
Shenzhen, PRC Shenzhen, PRC Logistics support services 10,000.00 100.00 - involving enterprises under
Ltd.
common control
Business combination
Chiwan Container Terminal Co., Ltd. Shenzhen, PRC Shenzhen, PRC Logistics support services USD95,300,000.00 55.00 20.00 involving enterprises under
common control
Business combination
Shenzhen Chiwan Tugboat Co., Ltd. Shenzhen, PRC Shenzhen, PRC Logistics support services 2,400.00 100.00 - involving enterprises under
common control
Business combination
Chiwan Shipping (Hong Kong) Limited Hong Kong, PRC Hong Kong, PRC Logistics support services HKD800,000.00 100.00 - involving enterprises under
common control
China Merchants Port (Zhoushan) RoRo Assets acquisition
PRC PRC Logistics support services 17,307.86 51.00 -
Logistics Co., Ltd
Business combination
HKD
CMPort(Note 1) Hong Kong, PRC Hong Kong, PRC Investment holding 43.85 - involving enterprises under
44,016,586,600.00
common control
Business combination
China Merchants Container Services Limited Hong Kong Hong Kong Logistics support services HKD500,000.00 - 100.00 involving enterprises under
common control
Business combination
China Merchants International (China)
PRC PRC Investment holding USD67,400,000.00 - 100.00 involving enterprises under
Investment Co., Ltd.
common control
Business combination
Qingdao Port Merchants International
PRC PRC Logistics support services USD206,300,000.00 - 100.00 involving enterprises under
Container Terminal Co., Ltd.
common control
Business combination
China Merchants International Terminal
PRC PRC Logistics support services USD44,000,000.00 - 90.10 involving enterprises under
(Qingdao) Co., Ltd.
common control
Business combination
China Merchants Bonded Logistics Co., Ltd. PRC PRC Logistics support services 70,000.00 40.00 60.00 involving enterprises under
common control
Business combination
China Merchants Port Services (Shenzhen)
PRC PRC Logistics support services 55,000.00 - 100.00 involving enterprises under
Co., Ltd.
common control
Business combination
Shekou Container Terminals Ltd. PRC PRC Logistics support services HKD618,201,200.00 - 100.00 involving enterprises under
common control
Business combination
Shenzhen Lianyunjie Container Terminals
PRC PRC Logistics support services 60,854.90 - 100.00 involving enterprises under
Co., Ltd
common control
Business combination
Anxunjie Container Terminals (Shenzhen)
PRC PRC Logistics support services 127,600.00 - 100.00 involving enterprises under
Co., Ltd.
common control
Business combination
Shenzhen Haiqin Engineering Management Engineering supervision
PRC PRC 300.00 - 100.00 involving enterprises under
Co., Ltd services
common control
Business combination
Shenzhen Haixing PRC PRC Logistics support services 53,072.92 - 67.00 involving enterprises under
common control
Business combination
Magang Cangma PRC PRC Logistics support services 33,500.00 - 100.00 involving enterprises under
common control
Business combination
Shenzhen Mawan Ganghang Co., Ltd. PRC PRC Logistics support services 20,000.00 - 100.00 involving enterprises under
common control
Business combination
Shenzhen Zhongzhi Investment Co., Ltd. PRC PRC Investment consulting 4,000.00 - 75.00 involving enterprises under
common control
- 127 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - continued
Proportion of
Registered capital
Principal place ownership
Name of the subsidiary Place of incorporation Nature of business (RMB'0000, unless Acquisition method
of business interest (%)
otherwise specified)
Direct Indirect
Business combination
Shenzhen Haixing Logistics Development
PRC PRC Logistics support services 7,066.79 - 67.00 involving enterprises under
Co., Ltd.
common control
Business combination
Shenzhen Lianyongtong Terminal Co., Ltd. PRC PRC Logistics support services USD7,000,000.00 - 100.00 involving enterprises under
common control
Business combination
Shenzhen Lianda Tugboat Co., Ltd. PRC PRC Logistics support services 200.00 - 60.29 involving enterprises under
common control
Business combination
Zhangzhou Zhongli Outer Wheel Tally
PRC PRC Logistics support services 200.00 - 84.00 involving enterprises under
Co., Ltd.
common control
Business combination
Xiamenwan Port Affairs (Note 2) PRC PRC Logistics support services 44,450.00 - 31.00 involving enterprises under
common control
Business combination
Zhangzhou China Merchants Port Co., Ltd. PRC PRC Logistics support services 116,700.00 - 60.00 involving enterprises under
common control
Business combination
Zhangzhou China Merchants Tugboat
PRC PRC Logistics support services 1,500.00 - 70.00 involving enterprises under
Company Limited
common control
Business combination
China Merchants International Technology
PRC PRC IT services 8,784.82 13.18 43.74 involving enterprises under
Company Limited ("CMIT")
common control
Business combination
DPN PRC PRC IT services 3,200.00 - 79.03 involving enterprises under
common control
Business combination
Yingkou Gangxin PRC PRC IT services 800.00 - 100.00 involving enterprises under
common control
Business combination
Preparation for warehousing
ATJ PRC PRC HKD100,000,000.00 - 100.00 involving enterprises under
projects
common control
Business combination
Preparation for warehousing
ASJ PRC PRC HKD100,000,000.00 - 100.00 involving enterprises under
projects
common control
Business combination
Anyunjie Port Warehousing Service Preparation for warehousing
PRC PRC 6,060.00 - 80.00 involving enterprises under
(Shenzhen) Co., Ltd. projects
common control
Business combination
Yide Port PRC PRC Logistics support services 21,600.00 - 51.00 involving enterprises under
common control
Business combination
British Virgin
Mega Shekou Container Terminals Limited British Virgin Islands Investment holding USD120.00 - 80.00 involving enterprises under
Islands
common control
Business combination
TML Cyprus Cyprus Investment holding EUR5,000.00 - 50.00 involving enterprises under
common control
Business combination
CICT Sri Lanka Sri Lanka Logistics support services USD150,000,100.00 - 85.00 involving enterprises under
common control
Business combination
Government of Government of
Lome Container Terminal S.A. Logistics support services FCFA200,000,000.00 - 100.00 involving enterprises under
Republic of Togo Republic of Togo
common control
Business combination
British Virgin
Gainpro Resources Limited British Virgin Islands Investment holding USD1.00 - 76.50 involving enterprises under
Islands
common control
Business combination
Shenzhen Jinyu Rongtai Investment
PRC PRC Lease of property etc. 80,000.00 - 100.00 involving enterprises under
Development Co., Ltd.
common control
Business combination
Shenzhen Merchants Qianhaiwan Real
PRC PRC Lease of property etc. 20,000.00 - 100.00 involving enterprises under
Estate Co., Ltd.
common control
Business combination
Shantou Port PRC PRC Logistics support services 12,500.00 - 60.00 involving enterprises under
common control
Business combination
Hambantota International Port Group
Sri Lanka Sri Lanka Logistics support services USD794,000,000.00 - 85.00 involving enterprises under
(Private) Limited
common control
Business combination
China Merchants Holdings (Djibouti) FZE Djibouti Djibouti Logistics support services USD38,140,000.00 - 100.00 involving enterprises under
common control
Business combination
British Virgin
Xinda Resources Limited ("Xinda") British Virgin Islands Investment holding USD107,620,000.00 - 77.45 involving enterprises under
Islands
common control
Business combination
Kong Rise Development Limited Hong Kong, PRC Hong Kong, PRC Investment holding USD107,620,000.00 - 100.00 involving enterprises under
common control
- 128 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - continued
Proportion of
Registered capital
Principal place ownership
Name of the subsidiary Place of incorporation Nature of business (RMB'0000, unless Acquisition method
of business interest (%)
otherwise specified)
Direct Indirect
Business combination not
TCP Brazil Brazil Logistics support services BRL68,851,600.00 - 100.00 involving enterprises under
common control
Business combination not
Zhanjiang Port PRC PRC Logistics support services 587,420.91 30.78 27.58 involving enterprises under
common control
Business combination not
Zhanjiang Port International Container
PRC PRC Logistics support services 60,000.00 - 80.00 involving enterprises under
Terminal Co., Ltd
common control
Business combination not
Zhanjiang Port Petrochemical Terminal
PRC PRC Logistics support services 18,000.00 - 50.00 involving enterprises under
Co., Ltd.
common control
Business combination not
China Ocean Shipping Tally Co., Ltd.,
PRC PRC Logistics support services 300.00 - 84.00 involving enterprises under
Zhanjiang
common control
Business combination not
Zhanjiang Port Donghaidao Bulk Cargo
PRC PRC Logistics support services 5,000.00 - 100.00 involving enterprises under
Terminal Co., Ltd.
common control
Business combination not
Guangdong Zhanjiang Port Logistics
PRC Shantou, PRC Logistics support services 10,000.00 - 100.00 involving enterprises under
Co., Ltd.
common control
Business combination not
Zhanjiang Port Haichuan Trading Co., Ltd. Hong Kong, PRC Hong Kong, PRC Logistics support services 200.00 - 100.00 involving enterprises under
common control
Business combination not
Ningbo Daxie(Note 3) PRC PRC Logistics support services 1,20,909.00 - 45.00 involving enterprises under
common control
Shantou Seaport Tugboat Service Co. LTD PRC PRC Logistics support services 1,000.00 - 100.00 Investment establishment
Business combination not
Guangdong Zhanjiang Port Longteng
PRC PRC Logistics support services 9,000.00 - 70.00 involving enterprises under
Shipping Co. LTD
common control
Business combination
Direcet Achieve Investments Limited Hong Kong, PRC Hong Kong, PRC Investment holding USD 814,781,300.00 - 100.00 involving enterprises under
common control
Sanya Merchants Port Development Co.,
PRC PRC Logistics support services 1,000.00 51.00 - Investment establishment
Ltd.
Port Development (Hong Kong) (Note 4) Hong Kong, PRC Hong Kong, PRC Investment holding 2,768,291.56 100.00 - Investment establishment
Business combination
Malai Storage (Shenzhen) Co., Ltd. Shenzhen, PRC Shenzhen, PRC Holding Qianhai Properties 139,914.10 - 100.00 involving enterprises under
common control
Note 1: On 19 June 2018, the Company and China Merchants Group (Hong Kong) Co., Ltd.
("CMHK") entered into "Agreement of Concerted Action on China Merchants Port
Holdings Company Limited". According to the agreement, CMHK unconditionally keeps
consistent with the Company when voting for the matters discussed at the general
shareholders meeting of CMPort in respect of its voting power of CMPort as entrusted, and
performs the voting as per the Company's opinion.
In March 2022, the Company transferred its 43.00% equity in CMPort to Port
Development (Hong Kong), a wholly-owned subsidiary in Hong Kong. In the first half of
2022, the Company and Port Development (Hong Kong) purchased 25,334,000 ordinary
shares of CMPort via secondary market. After the transaction, the Group's ordinary shares
in CMPort changed from 1,634,643,473 shares to 1,659,977,473 shares and the proportion
of which to the total number of ordinary shares issued was changed from 43.18% to
43.85%. The proportion of ordinary shares held by CMHK in CMPort to the total number
of ordinary shares issued was 21.98%. Therefore, the Group holds up to 65.83% voting
power of CMPort and is able to exert control over it.
- 129 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - continued
Note 2: The Group and China Merchants Zhangzhou Development Zone Co., Ltd. entered into
"Equity Custody Agreement", according to which China Merchants Zhangzhou
Development Zone Co., Ltd. entrusted its 29.00% equity of ZCMG to the Group for
operation and management. Therefore, the Group has 60.00% voting power of ZCMG and
includes it in the scope of consolidated financial statements.
Note 3: Cyber Chic Company Limited, a subsidiary of the Company, entered into a Cooperation
Agreement with Ningbo Zhoushan, according to which Cyber Chic Company Limited and
Ningbo Zhoushan will negotiate and communicate with each other to reach a concerted
action before exercising their shareholder rights. In the event that both parties to the
Agreement fail to reach a consensus on matters such as the operation and management of
Ningbo Daxie, the opinion of Cyber Chic Company Limited shall prevail. After the
signing of the Cooperation Agreement, Cyber Chic Company Limited and Ningbo
Zhoushan together own more than 50% equity of Ningbo Daxie. Therefore, the Group is
able to exert control over it and includes it in the scope of consolidated financial
statements.
Note 4: Port Development (Hong Kong) is a limited liability company incorporated by the
Company on 16 February 2022 in Hong Kong, the PRC and has a registered capital
equivalent to RMB 27,682,915,553.41.
(2) Material non-wholly-owned subsidiaries
Profit or loss Dividends
Proportion of
attributable to distributed to Balance of
ownership
minority minority minority interests
Name of the subsidiary interest held by
shareholders in shareholders in at the end of the
the minority
the current the current period
shareholders (%)
period period
CMPort 56.15 2,799,753,661.34 274,671,990.28 66,495,400,621.76
- 130 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(3) Significant financial information of material non-wholly-owned subsidiaries
Closing balance Opening balance
Name of the
Non-current Current Non-current
subsidiary Current assets Non-current assets Total assets Current liabilities Total liabilities Current assets Non-current assets Total assets Total liabilities
liabilities liabilities liabilities
CMPort 11,799,213,351.30 134,510,303,382.62 146,309,516,733.92 15,050,468,055.36 30,238,727,766.98 45,289,195,822.34 12,688,479,912.82 129,676,976,538.08 142,365,456,450.90 17,301,652,593.00 26,291,693,462.84 43,593,346,055.84
Amount incurred Amount incurred
in the current period in the prior period
Name of the
Total Total
subsidiary Cash flows from Cash flows from
Operating income Net profit comprehensive Operating income Net profit comprehensive
operating activities operating activities
income income
CMPort 5,454,127,408.32 4,517,046,368.18 5,248,402,438.99 2,560,440,425.29 4,722,661,879.99 3,924,079,558.91 3,595,625,905.94 2,188,410,312.61
2. Transactions resulting in changes in ownership interests in subsidiaries without losing control over the subsidiaries
(1) Description of changes in ownership interests in subsidiaries
See Note (X) 1 (1) for details.
- 131 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
2. Transactions resulting in changes in ownership interests in subsidiaries without losing
control over the subsidiaries - continued
(2) Effect of transaction on minority interests and owners' equity attributable to the Company
Item CMPort
Purchase cost
- Cash 287,664,615.60
- Non-cash assets -
Total purchase cost 287,664,615.60
Less: Share of net assets of subsidiaries calculated according to the proportion of
527,510,282.18
equity acquired
Difference -239,845,666.58
Including: Adjusted capital reserve 239,845,666.58
Adjusted surplus reserve -
Adjusted undistributed profit -
3. Interests in joint ventures and associates
(1) Material joint ventures or associates
Proportion of ownership
Accounting method
Principal place Place of interests held by the Group
Investee Nature of business of investments in
of business registration (%)
associates
Direct Indirect
Associates
Shanghai International Port Shanghai, Port and container
Shanghai, PRC - 28.05 Equity method
(Group) Co., Ltd. PRC terminal business
- 132 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of material associates
Shanghai Port Group
Closing balance/Amount Opening balance/Amount
Item
incurred in the current incurred in the prior
period period
Current assets 52,002,818,110.05 50,550,358,636.59
Including: Cash and cash equivalents 28,899,093,341.46 28,494,577,716.81
Non-current assets 123,954,416,521.09 120,237,119,876.27
Total assets 175,957,234,631.14 170,787,478,512.86
Current liabilities 20,422,902,896.63 29,281,912,321.67
Non-current liabilities 41,557,400,163.30 33,699,936,944.88
Total liabilities 61,980,303,059.93 62,981,849,266.55
Minority interests 8,077,848,782.92 8,014,833,731.08
Equity attributable to shareholders of the Company 105,899,082,788.29 99,790,795,515.23
Share of net assets calculated based on the proportion of
29,715,282,630.39 26,584,267,925.26
ownership interests
Adjustments
-Goodwill 2,491,068,908.80 2,066,192,806.75
-Others -84,268,034.28 193,346,651.68
Carrying amounts of equity investments in associates 32,122,083,504.91 28,843,807,383.69
Fair value of publicly quoted equity investments in
38,077,553,886.35 33,990,040,779.28
associates
Operating income 20,094,438,005.89 17,362,678,537.04
Net profit 11,182,647,136.56 9,168,282,128.06
Other comprehensive income -375,283,422.31 -8,803,490.60
Total comprehensive income 10,807,363,714.25 9,159,478,637.46
Dividends received from associates in the current year 1,240,949,440.54 793,927,959.22
5. Summarized financial information of immaterial associates and joint ventures
Closing balance / Opening balance/ Amount
Amount incurred incurred
in the current in the prior
period period
Joint ventures:
Total carrying amount of investments 9,490,794,161.58 8,540,003,758.64
Aggregate of following items calculated based on the
proportion of ownership interest
- Net profit 197,699,052.34 95,037,172.93
- Other comprehensive income - -
- Total comprehensive income 197,699,052.34 95,037,172.93
Associates:
Total carrying amount of investments 32,928,324,041.67 32,969,640,682.19
Aggregate of following items calculated based on the
proportion of ownership interest
- Net profit 1,053,453,382.82 1,134,394,012.10
- Other comprehensive income -96,067,083.31 -53,669,400.39
- Total comprehensive income 957,386,299.51 1,080,724,611.71
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.
- 133 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XI) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
1. Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The
Group's exposure to the currency risk is primarily associated with HKD, USD and EUR. Except for
part of the purchases and sales, the Group's other principal activities are denominated and settled in
RMB. As at 30 June 2021, the balance of the Group's assets and liabilities are both denominated in
functional currency, except that the assets and liabilities set out below are recorded using foreign
currency. Currency risk arising from the foreign currency balance of assets and liabilities may have
impact on the Group's performance.
Item Closing balance Opening balance
Cash and bank balances 180,901,231.02 304,226,402.75
Accounts receivable 45,066,576.46 37,640,821.94
Other receivables 741,492,337.28 292,001,737.01
Short-term borrowings 3,603,620,000.00 653,200,000.00
Accounts payable 1,463,775.57 3,534,444.32
Other payables 18,789,193.28 131,844,034.16
Non-current liabilities due within one year - 2,585,407,534.25
Long-term borrowings 670,000,000.00 670,000,000.00
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures. According to the current risk exposure and judgment of the exchange rate
movements, management considers it is unlikely that the exchange rate changes in the future one
year will result in significant loss to the Group.
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and
hedges of a net investment in a foreign operation are highly effective. On the basis of the above
assumption, where all other variables are held constant, the reasonably possible changes in the
foreign exchange rate may have the following pre-tax effect on the profit or loss for the period and
shareholders' equity:
The current period The prior period
Effect on
Item Changes in exchange rate Effect on Effect on
Effect on profits shareholders'
profits shareholders' equity
equity
All foreign currencies 5% increase against RMB -142,170,160.72 -142,170,160.72 -37,283,559.46 -37,283,559.46
All foreign currencies 5% decrease against RMB 142,170,160.72 142,170,160.72 37,283,559.46 37,283,559.46
All foreign currencies 5% increase against USD 5,174,284.81 5,174,284.81 1,204,140.69 1,204,140.69
All foreign currencies 5% decrease against USD -5,174,284.81 -5,174,284.81 -1,204,140.69 -1,204,140.69
All foreign currencies 5% increase against HKD -208,703,403.25 -208,703,403.25 -161,772,050.17 -161,772,050.17
All foreign currencies 5% decrease against HKD 208,703,403.25 208,703,403.25 161,772,050.17 161,772,050.17
5% increase against EUR 319,495.78 319,495.78 29,661,962.11 29,661,962.11
All foreign currencies
(including FCFA)
5% decrease against EUR -319,495.78 -319,495.78 -29,661,962.11 -29,661,962.11
All foreign currencies
(including FCFA)
- 134 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XI) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
2. Interest rate risk - changes in cash flows
Risk of changes in cash flows of financial instruments arising from interest rate changes is mainly
related to bank loans with floating interest rate. (See Note (VIII) 26 and Note (VIII) 36). The Group
continuously and closely monitors the impact of interest rate changes on the Group's interest rate
risk. The Group's policy is to maintain these borrowings at floating rates. Presently, the Group has
no arrangement such as interest rate swaps etc.
Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Fluctuations of market interest rate can affect the interest income or expense of a financial
instrument with floating interest rate;
For a financial instrument at fair value with fixed interest rate, the fluctuations of market interest rate
can only affect its interest income or expense;
For a derivative financial instrument designated as hedging instrument, the fluctuations of market
interest rate affects its fair value, and all interest rate hedging are expected to be highly effective;
The changes in fair value of derivative financial instruments and other financial assets and liabilities
are calculated using cash flow discounting method by applying the market interest rate at balance
sheet date.
On the basis of above assumptions, where the other variables held constant, the pre-tax effect of
possible and reasonable changes in interest rate on the profit or loss for the period and shareholders'
equity are as follows:
The current period The prior period
Changes in
Item Effect on profits
Effect on
Effect on profits
Effect on
interest rate
shareholders' equity shareholders' equity
Short-term borrowings
and long-term 1% increase -206,916,565.57 -206,916,565.57 -103,396,518.44 -103,396,518.44
borrowings
Short-term borrowings
and long-term 1% decrease 206,916,565.57 206,916,565.57 103,396,518.44 103,396,518.44
borrowings
3. Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash
equivalents deemed adequate by the management to finance the Group's operations and mitigate
the effects of fluctuations in cash flows. The management monitors the utilization of bank
borrowings and ensures compliance with loan covenants.
As at 30 June 2022, the Group had total current liabilities in excess of total current assets of RMB
5,208,299,165.95. On 30 June 2022, the Group had available and unused line of credit amounting
to RMB 62,195,186,155.77, which is greater than the balance of the net current liabilities. Therefore,
the Group's management believes that the Group has no significant liquidity risk.
- 135 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XI) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
3. Liquidity risk - continued
The following is the maturity analysis for financial assets and financial liabilities held by the Group
which is based on undiscounted remaining contractual obligations:
Item Carrying amount Gross amount Within 1 year 1 to 5 years Over 5 years
Short-term borrowings 15,482,279,719.62 15,701,949,471.86 15,701,949,471.86 - -
Notes payable 9,089,940.00 9,089,940.00 9,089,940.00 - -
Accounts payable 711,116,965.55 711,116,965.55 711,116,965.55 - -
Other payables 3,485,085,782.19 3,485,085,782.19 3,485,085,782.19 - -
Non-current liabilities due
2,725,550,249.97 2,931,506,934.63 2,931,506,934.63 - -
within one year
Other current liabilities 5,163,575,748.06 5,165,445,824.77 5,165,445,824.77 - -
Long-term borrowings 7,577,041,256.64 8,501,656,958.55 - 6,691,876,951.47 1,809,780,007.08
Bonds payable 20,642,028,030.72 22,725,304,234.81 - 15,080,562,028.34 7,644,742,206.47
Lease liabilities 1,060,180,377.44 1,730,589,221.49 - 497,661,544.57 1,232,927,676.92
Long-term payables 3,669,169,313.03 3,718,817,760.80 - 321,077,054.36 3,397,740,706.44
(XII) DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Fair value at closing balance
Item
Level 1 Level 2 Level 3 Total
Measurements at fair value
continuously
Held-for-trading financial assets 157,609.38 5,272,751,702.75 - 5,272,909,312.13
Receivables financing - - 191,399,515.52 191,399,515.52
Other equity instrument investments - - 171,625,961.43 171,625,961.43
Other non-current financial assets 792,077,911.87 - 26,791,381.35 818,869,293.22
Total assets measured at fair value
792,235,521.25 5,272,751,702.75 389,816,858.30 6,454,804,082.30
continuously
2. Basis for determining the market price of items continuously measured at level 1 fair
value
The market prices of held-for-trading financial assets, other equity instrument investments and other
non-current financial assets are determined at the closing price of the equity instrument at Shanghai
Stock Exchange and Hong Kong Stock Exchange at 30 June 2022.
3. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Fair value at the end of
Item Valuation techniques Inputs
the period
Held-for-trading financial assets 5,272,751,702.75 Cash flow discounting Expected rate of return
During the valuation, the Group needs to make estimates in respect of market volatility and
relevance etc., select appropriate discount rate and take into consideration of adjustment of discount
and premium.
- 136 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XII) DISCLOSURE OF FAIR VALUE - continued
4. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 3 fair value
Fair value at the end of
Item Valuation techniques Inputs
the period
Receivables financing 191,399,515.52 Cash flow discounting Discount rate
Other equity instrument investments 171,625,961.43 Net worth method Carrying amount
Other non-current financial assets 2,000,000.00 Cash flow discounting Discount rate
Other non-current financial assets 680,887.72 Net worth method Carrying amount
Listed company comparison
Other non-current financial assets 24,110,493.63 Share price
approach
The fair value of non-listed equity instruments included in equity instruments at fair value through
profit or loss or other comprehensive income is determined using the valuation techniques such as
cash flow discounting method, net worth method, listed company comparison approach etc. During
the valuation, the Group needs to make estimates in respect of the future cash flows, credit risk,
market volatility and relevance etc., select appropriate discount rate and take into consideration of
adjustment of discount and premium.
5. Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and liabilities not measured at fair value mainly include: notes receivable,
accounts receivable, other receivables, short-term borrowings, notes payable, accounts payable,
other payables, long-term borrowings, bonds payable and long-term payables etc.
The Group's management believes that the carrying amounts of financial assets and financial
liabilities at amortized cost in the financial statements approximate their fair values.
The fair value of bonds payable traded in active market is determined at the quoted price in the
active market. The fair values of long-term borrowings, long-term payables and bonds payable not
traded in active market are determined at the present value of contractual future cash flows
discounted using the interest rate for providing nearly the same cash flows to entity with comparable
credit rating under the same conditions.
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of the
Proportion of the
Company's
Related party Place of Nature of Company's voting
Name of the parent Type of the entity Issued share capital ownership interests
relationship registration business power held by the
held by the parent
parent (%)
(%)
Private limited
Broadford Global Parent Investment
company (share Hong Kong HKD 21,120,986,262 2.88 81.92 (Note)
Limited company holding
limited)
- 137 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
1. Parent of the Company - continued
Note: Broadford Global Limited directly holds 2.88% equity of the Company, and indirectly holds
19.29% and 59.75% equity of the Company through the subsidiaries China Merchants
Gangtong Development (Shenzhen) Co., Ltd. and China Merchants Port Investment
Development Co., Ltd. (formerly known as China Merchants Investment Development Co.,
Ltd.) respectively. The ultimate controlling shareholder of the Company is China Merchants
Group.
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in Note (X) 1.
3. Associates and joint ventures of the Company
Details of the Company's significant joint ventures and associates are set out in Note (X) 3.
Other joint ventures or joint ventures that occurred related party transactions and formed balances
with the Group this year are as follows:
Name of joint venture or associate Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Guizhou East Land Port Operation Co., Ltd. Joint venture
Qingdao Qianwan West Port United Wharf Co., Ltd. Joint venture
Qingdao Qianwan New United Container Terminal Co., Ltd. Joint venture
China Ocean Shipping Agency (Zhanjiang) Co., Ltd. Joint venture
Yantai Port Group Laizhou Port Co., Ltd. Joint venture
Qingdao Qianwan United Container Terminal Co., Ltd. Joint venture
Qingdao Wutong Century Supply Chain Co., Ltd. Joint venture
Great Horn Development Company FZCo Associate
International Djibouti Industrial Parks Operation FZCo Associate
Port de Djibouti S.A. Associate
Terminal Link SAS Associate
Tin-Can Island Container Terminal Ltd Associate
Guizhou Qiandongnan Continental Land Port Operation Co., Ltd. Associate
Nanshan Group and its subsidiaries Associate
SIPG Associate
Shenzhen Baohong Technology Co., Ltd. Associate
Tianjin Haitian Bonded Logistics Co., Ltd. Associate
Merchants Port City Associate
Zhanjiang Xiagang United Development Co., Ltd. Associate
Chu Kong River Trade Terminal Co., Ltd. Associate
Shantou Zhonglian Tally Co., Ltd Associate
Shantou International Container Terminals Limited Associate
Shenzhen Bay Electricity Industry Co., Ltd. Associate
COSCO Logistics (Zhanjiang) Co., Ltd. Associate
Associate, Controlled by the same
Liaoning Port and its subsidiaries
ultimate controlling shareholder
Ningbo Zhoushan Associate
Shenzhen Chiwan Oriental Logistics Co., Ltd. Associate
Dalian Port Communications Engineering Co., Ltd. Associate
- 138 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
Name of other related parties Relationship with the Company
Djibouti International Hotel Company Minority shareholder of subsidiary
Zhanjiang Infrastructure Construction Investment Group Co., Ltd. Minority shareholder of subsidiary
Zhoushan Blue Ocean Investment Co., Ltd. Minority shareholder of subsidiary
China COSCO Shipping Group and its subsidiaries (Note1) Same related natural person
China Marine Shipping Agency Guangdong Co., Ltd. Controlled by the same ultimate controlling shareholder
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate controlling shareholder
South China Sinotrans Supply Chain Management Co., Ltd. Controlled by the same ultimate controlling shareholder
EuroAsia Dockyard Enterprise and Development Limited Controlled by the same ultimate controlling shareholder
Qingdao Bonded Logistics Park Sinotrans Warehousing Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Supply Chain Management Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Qianhai Shekou Free Trade Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen West Port Security Service Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants International Shipping Agency (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shenzhen Ro-Ro Shipping Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Commercial Property Investment (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Property Management (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Shenzhen Co., Ltd. Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards (Shekou) Limited Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards Limited Controlled by the same ultimate controlling shareholder
China Ocean Shipping Tally Shenzhen Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants International Cold Chain (Shenzhen) Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Group Finance Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Port Investment Development Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinoway Shipping Ltd. Controlled by the same ultimate controlling shareholder
CMPort Chuangrong (Shenzhen) Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Central China Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Tianjin) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchant Food (China) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Tongshang Finance Lease Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines (Hong Kong) Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Power Supply Co., Ltd. Controlled by the same ultimate controlling shareholder
China Traffic Import and Export Co., Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Guangdong Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Heavy Industry (Jiangsu) Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Shipping Limited Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Container Terminal Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Securities Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Gangrong Big Data Co., Ltd. (formerly known as "Yingkou Gangrong
Controlled by the same ultimate controlling shareholder
Big Data Co., Ltd.")
Panjin Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Co., Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Agency Shenzhen Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Ningbo Co., Ltd. Controlled by the same ultimate controlling shareholder
Liaogang Holding (Yingkou) Co., Ltd Controlled by the same ultimate controlling shareholder
Liaoning Electronic Port Co., Ltd Controlled by the same ultimate controlling shareholder
Yingkou New Port Ore Terminal Co., Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Port Group and its subsidiaries Controlled by the same ultimate controlling shareholder
Liaoning Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
China Yangtze River Shipping Co.,Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shekou Industrial Zone Holdings Co., Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
Dandong Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Container Controlled by the same ultimate controlling shareholder
Shenzhen Nanyou (Holdings) Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Apartment Development (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
Jifa Logistics Controlled by the same ultimate controlling shareholder
Orienture Holdings Company Limited Controlled by the same ultimate controlling shareholder
- 139 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
Name of other related parties Relationship with the Company
China Merchants Finance Lease (Shanghai) Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
Khor Ambado FZCo Significantly influenced by the ultimate controlling shareholder
China Merchants Bank Co., Ltd. Significantly influenced by the ultimate controlling shareholder
Antong Holdings Co., Ltd. and its subordinate companies (Note 2) Other related parties
Note1: The Company's former Chairman Fu Gangfeng (resigned on 31 January 2020) worked as
the director and general manager of China COSCO Shipping Corporation Limited within
12 months after his departure. Therefore, the related party relationship between the
Company and China COSCO Shipping Corporation Limited exists from 31 January 2020
to 31 January 2021.
Note2: Fujian Zhaohang Logistics Management Partnership (Limited Partnership), which is a
joint venture of the Company, is an actual controller of Antong Holdings Co., Ltd.
5. Related party transactions
(1) Rendering and receipt of service
Pricing method and
Content of Amount incurred in the Amount incurred in the
Related party decision procedures of
transaction current period prior period
related transactions
Receipt of service:
Purchase of structured
China Merchants Bank Co., Ltd. Negotiation 1,000,000,000.00 1,000,000,000.00
deposits
Shenzhen Bay Electricity Industry Co., Ltd. Service expenditure Negotiation 27,561,760.64 23,540,775.37
Nanshan Group and its subsidiaries Service expenditure Negotiation 8,859,744.23 2,229,485.70
Qingdao Qianwan West Port United Wharf Co., Ltd. Service expenditure Negotiation 8,365,470.62 7,456,011.20
Ningbo Zhoushan Service expenditure Negotiation 7,859,747.95 -
Shenzhen West Port Security Service Co., Ltd. Service expenditure Negotiation 5,661,635.33 4,195,429.30
Shenzhen Chiwan Oriental Logistics Co., Ltd. Service expenditure Negotiation 4,263,289.81 2,332,826.73
Hoi Tung (Shanghai) Company Limited Service expenditure Negotiation 3,971,930.07 8,531,341.56
Yiu Lian Dockyards Limited Service expenditure Negotiation 3,807,933.17 3,623,433.09
China Marine Shipping Guangdong Co., Ltd. Service expenditure Negotiation 2,578,833.07 1,542,016.89
China Merchants Zhangzhou Development Zone Power
Service expenditure Negotiation 2,443,269.20 2,166,324.95
Supply Co., Ltd.
Yingkou Port Group and its subsidiaries Service expenditure Negotiation 2,043,787.06 1,691,743.27
China Merchants Property Management (Shenzhen) Co., Ltd. Service expenditure Negotiation 1,921,021.77 2,679,300.52
China Marine Shipping Agency Shenzhen Co., Ltd. Service expenditure Negotiation 1,323,605.65 1,022,766.82
COSCO Logistics (Zhanjiang) Co., Ltd. Service expenditure Negotiation 1,278,998.39 568,369.15
China Ocean Shipping Tally Shenzhen Co., Ltd. Service expenditure Negotiation 1,182,219.25 828,352.57
China Merchant Food (China) Co., Ltd. Service expenditure Negotiation 219,125.15 1,201,759.76
Shenzhen Qianhai Shekou Free Trade Investment
Service expenditure Negotiation - 1,559,726.18
Development Co. Ltd.
Other related parties Service expenditure Negotiation 6,018,119.16 6,234,466.92
China Merchants Group Finance Company Limited Interest payments Negotiation 44,331,121.77 30,389,688.50
China Merchants Bank Co., Ltd. Interest payments Negotiation 4,008,117.76 3,268,813.97
Nanshan Group and its subsidiaries Property utilities Negotiation 245,927.93 290,902.36
Total 1,137,945,657.98 1,105,353,534.81
- 140 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Rendering and receipt of service - continued
Pricing method
and decision
Content of Amount incurred in Amount incurred in
Related party procedures of
transaction the current period the prior period
related
transactions
Rendering of service:
China Marine Shipping Agency Ningbo Co., Ltd. Service revenue Negotiation 106,096,787.01 -
COSCO Logistics (Zhanjiang) Co., Ltd. Service revenue Negotiation 93,854,144.35 88,294,684.14
Antong Holdings Co., Ltd. and its subordinate
Service revenue Negotiation 57,252,837.30 98,541,945.59
companies
Liaoning Port and its subsidiaries Service revenue Negotiation 50,771,513.32 19,864,136.94
China Ocean Shipping Agency (Zhanjiang) Co., Ltd. Service revenue Negotiation 29,767,054.90 25,067,430.42
China Marine Shipping Agency Guangdong Co.,
Service revenue Negotiation 28,379,378.60 38,552,309.99
Ltd.
Qingdao Qianwan United Container Terminal Co.,
Service revenue Negotiation 27,999,029.61 22,637,413.70
Ltd.
Yingkou Port Group and its subsidiaries Service revenue Negotiation 25,735,822.73 16,175,416.62
China Merchants International Shipping Agency
Service revenue Negotiation 14,952,848.57 9,322,068.75
(Shenzhen) Co., Ltd.
Yiu Lian Dockyards (Shekou) Limited Service revenue Negotiation 7,624,158.50 7,465,890.54
Sinoway Shipping Ltd. Service revenue Negotiation 6,695,198.11 51,910.38
Liaoning Port Group Co., Ltd. Service revenue Negotiation 4,971,803.76 6,851,108.81
CMPort Chuangrong (Shenzhen) Technology Co.,
Service revenue Negotiation 4,622,170.92 -
Ltd.
Sinotrans Central China Co., Ltd. Service revenue Negotiation 4,226,183.28 -
Sinotrans Container Lines Co., Ltd. Service revenue Negotiation 4,203,154.01 137,305.63
Qingdao Bonded Logistics Park Sinotrans
Service revenue Negotiation 3,183,820.61 1,166,773.53
Warehousing Logistics Co., Ltd.
China Ocean Shipping Agency Shenzhen Service revenue Negotiation 2,841,490.56 2,099,723.96
China Yangtze River Shipping Co.,Ltd. Service revenue Negotiation 2,750,508.20 2,133,440.00
China Marine Shipping Agency Shenzhen Co., Ltd. Service revenue Negotiation 2,397,694.66 2,818,483.03
China Merchants International Cold Chain
Service revenue Negotiation 2,053,124.00 3,453,502.00
(Shenzhen) Company Limited
Qingdao Qianwan West Port United Wharf Co., Ltd. Service revenue Negotiation 2,006,982.68 1,724,078.14
Sinotrans Container Lines (Hong Kong) Company
Service revenue Negotiation 1,694,057.81 1,277,956.30
Limited
Qingdao Qianwan New United Container Terminal
Service revenue Negotiation 1,538,691.31 1,446,408.10
Co., Ltd.
Guizhou Qiandongnan Continental Land Port
Service revenue Negotiation 1,447,018.87 651,707.54
Operation Co., Ltd.
China Merchants Port Investment Development
Service revenue Negotiation 1,327,585.66 280,430.34
Company Limited
Shantou Zhonglian Tally Co., Ltd Service revenue Negotiation 1,177,326.80 2,033,121.99
Sinotrans Shenzhen Qianhai Supply Chain
Service revenue Negotiation 1,055,634.00 3,679,093.79
Management Ltd.
Shenzhen Baohong Technology Co., Ltd. (formerly
Service revenue Negotiation 1,051,551.12 5,643,062.05
known as
Yantai Port Group Laizhou Port Co., Ltd. Service revenue Negotiation 1,037,735.84 1,006,226.41
South China Sinotrans Supply Chain Management
Service revenue Negotiation 886,573.85 1,277,958.26
Co., Ltd.
Shantou International Container Terminals Limited Service revenue Negotiation 481,962.75 2,257,929.61
Guizhou East Land Port Operation Co., Ltd. Service revenue Negotiation 423,517.06 2,046,879.50
China Merchants Gangrong Big Data Co., Ltd. Service revenue Negotiation 313,073.74 2,332,986.53
China Merchants Heavy Industry (Jiangsu) Co.,
Service revenue Negotiation 299,871.32 1,494,112.80
Ltd.
China Marine Shipping Guangdong Co., Ltd. Service revenue Negotiation 263,547.18 1,066,579.80
Sinotrans (HK) Shipping Limited Service revenue Negotiation 66,202.55 1,391,042.72
- 141 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Rendering and receipt of service - continued
Pricing method
and decision Amount incurred
Content of Amount incurred
Related party procedures of in the current
transaction in the prior period
related period
transactions
Rendering of service: - continued
China COSCO Shipping Group and its
Service revenue Negotiation - 67,594,546.16
subsidiaries
Ningbo Zhoushan Service revenue Negotiation - 6,777,410.02
Other related parties Service revenue Negotiation 5,978,857.08 8,010,716.33
China Merchants Bank Co., Ltd. Interest income Negotiation 23,990,575.31 27,709,063.52
China Merchants Group Finance Company
Interest income Negotiation 10,308,105.49 16,044,336.39
Limited
Terminal Link SAS Interest income Negotiation 81,787,132.97 83,985,071.35
Port of Newcastle and its subsidiaries Interest income Negotiation 30,137,869.75 32,103,266.39
Merchants Port City Interest income Negotiation - 1,957,067.27
Other related parties Interest income Negotiation 777,053.20 823,676.39
Total 648,429,649.34 619,248,271.73
(2) Leases with related parties
The Group as the lessor:
Pricing method
and decision Lease income Lease income
Name of the lessee Type of leased assets procedures of recognized in the recognized in the
related current period prior period
transactions
Qingdao Qianwan West Port United Wharf Co.,
Port and wharf facilities Negotiation 5,069,188.08 4,815,722.20
Ltd.
China Merchant Food (China) Co., Ltd. Buildings Negotiation 2,773,119.96 2,641,029.00
China Traffic Import and Export Co., Ltd. Buildings Negotiation 2,736,536.28 2,606,198.16
Qingdao Sinotrans Mining Technology Co., Ltd. Port and wharf facilities Negotiation 2,375,278.56 -
Qingdao Bonded Logistics Park Sinotrans
Buildings Negotiation 1,914,400.91 2,825,722.88
Warehousing Logistics Co., Ltd.
Qingdao Qianwan United Container Terminal
Buildings Negotiation 1,453,403.34 1,504,168.98
Co., Ltd.
China Merchants Securities Co., Ltd. Buildings Negotiation 1,270,897.29 1,239,270.84
Nanshan Group and its subsidiaries Buildings Negotiation 1,135,355.02 1,205,711.40
Yiu Lian Dockyards (Shekou) Limited Buildings Negotiation 1,091,340.94 1,180,174.54
Qingdao Sinotrans Supply Chain Management
Buildings Negotiation 561,911.99 1,947,099.43
Co., Ltd.
Other related parties Buildings, land use rights Negotiation 3,151,714.13 3,688,390.75
Total 23,533,146.50 23,653,488.18
- 142 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties - continued
The Group as the lessee:
Rent for short-term leases and
Variable lease payment not
leases of low value assets that is Interest expenses on lease
included in the measurement Rent paid Increase in right-of-use assets
accounted for using simplified liabilities assumed
of lease liabilities
approach
Name of the lessor Type of leased assets
Amount Amount
Amount Amount Amount Amount Amount Amount Amount Amount
incurred in incurred in
incurred in incurred in incurred in incurred in incurred in incurred in incurred in incurred in
current current
current period prior period prior period current period prior period prior period current period prior period
period period
Dalian Port Group Co., Ltd. Buildings 71,337.12 66,840.00 71,337.12 66,840.00 74,904.00 70,182.00 - - - -
Dalian Port Communications Engineering Co., Ltd. Buildings - - - - 3,356,220.00 3,134,472.00 125,995.63 258,056.46 - 1,774,387.48
Nanshan Group and its subsidiaries Buildings - - - - - - 4,862.54 6,137.91 - -
Nanshan Group and its subsidiaries Port and wharf facilities - - - - - 3,210,410.33 299,721.13 100,375.41 17,330,062.14 16,868,278.07
Nanshan Group and its subsidiaries Others - - - - 32,049,532.79 32,049,532.79 2,248,991.92 3,577,717.89 - -
EuroAsia Dockyard Enterprise and Development Limited Port and wharf facilities - - - - 18,076,245.95 18,973,411.00 2,033,491.49 2,938,091.59 - -
Shenzhen Nanyou (Holdings) Ltd. Land use rights 997,776.60 997,776.57 - - 873,054.50 - - - - -
Shenzhen Qianhai Shekou Free Trade Investment Development
Buildings - - - - - - - 759,302.63 66,214,506.44 -
Co. Ltd.
China Merchants Apartment Development (Shenzhen) Co., Ltd. Buildings - - - - 29,249,729.17 30,666,305.55 4,141,464.12 5,561,951.70 - -
China Merchants Commercial Property Investment (Shenzhen)
Buildings 188,604.84 416,500.00 - - 199,921.13 441,490.00 - - - -
Co., Ltd.
China Merchants International Cold Chain (Shenzhen) Company
Buildings 3,262,409.54 2,557,225.48 1,729,077.06 1,057,349.26 1,729,077.06 1,653,309.75 - - - -
Limited
China Merchants International Cold Chain (Shenzhen) Company Port and wharf facilities
- - - - 29,492,822.34 30,956,617.95 3,317,801.93 4,793,730.40 - -
Limited
China Merchants Finance Lease (Shanghai) Co., Ltd. Port and wharf facilities - - - - - - 5,682.95 6,391.01 - -
Machinery and equipment,
China Merchants Finance Lease (Shanghai) Co., Ltd. - - - - 1,773,985.94 1,828,611.70 141,650.14 213,576.01 1,079,443.53 -
port and wharf facilities
China Merchants Finance Lease (Tianjin) Co., Ltd. Port and wharf facilities 11,040.00 1,599,423.42 - - 242,028.00 29,611,475.78 3,915,561.44 3,203,467.47 81,529,585.77 -
China Merchants Shekou Industrial Zone Holdings Co., Ltd. Port and wharf facilities - - - - - - 32,692.70 - - -
China Merchants Shekou Industrial Zone Holdings Co., Ltd. Land use rights - - - - 7,943,326.82 4,306,269.69 298,580.40 298,580.40 - -
China Merchants Tongshang Finance Lease Co., Ltd. Machinery and equipment - - - - 1,097,438.83 977,789.94 127,512.83 112,028.64 2,377,742.19 -
Total 4,531,168.10 5,637,765.47 1,800,414.18 1,124,189.26 126,158,286.53 157,879,878.48 16,694,009.22 21,829,407.52 168,531,340.07 18,642,665.55
- 143 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(3) Related party guarantees
The Group as the guarantor
The guarantee
Guaranteed
Secured party Credit line Commencement date Maturity date has been
amount
completed or not
For the period from 1 January to 30 June 2022
Terminal Link SAS (Note 1) 68,508,952.47 68,508,952.47 11 June 2013 2033 No
Khor Ambado FZCo(Note 2) 192,528,000.00 115,901,056.33 24 May 2019 2032 No
Total 261,036,952.47 184,410,008.80
For the period from 1 January to 30 June 2021
Terminal Link SAS (Note 1) 67,144,809.51 67,144,809.51 1 June 2013 2033 No
Khor Ambado FZCo(Note 2) 186,692,802.05 112,388,291.40 24 May 2019 2032 No
Total 253,837,611.56 179,533,100.91
Note 1: CMA CGM S.A. is another shareholder of Terminal Link SAS, an associate of the Group.
The Group has made a commitment to CMA CGM S.A. that the Group will provides
guarantee for its bank loan financing to the associate Terminal Link SAS and other
liabilities to the extent of the Group's 49% ownership interest in the company. The actual
guaranteed amount is RMB 68,508,952.47 on 30 June 2022. If any guarantee liability
occurs, the Group will compensate CMA CGM S.A.
Note 2: Khor Ambado FZCo is a related company of the Group's common ultimate controlling
shareholder. The Group provides guarantee for its bank loans and other liabilities, with
actual guaranteed amount of RMB 115,901,056.33 as at 30 June 2022.
(4) Borrowings and loans with related parties
Commencement
Related party Amount Maturity date Description
date
For the period from 1 January to 30 June 2022
Borrowings
China Merchants Group Finance Fixed interest rate of
40,000,000.00 11 March 2022 10 March 2023
Company Limited 3.3500%
China Merchants Group Finance Fixed interest rate of
40,000,000.00 14 April 2022 14 April 2023
Company Limited 3.3500%
China Merchants Group Finance Fixed interest rate of
30,030,833.33 15 February 2022 14 February 2023
Company Limited 3.7000%
China Merchants Group Finance Fixed interest rate of
20,000,000.00 12 May 2022 11 May 2023
Company Limited 3.3500%
China Merchants Group Finance Fixed interest rate of
10,070,095.89 4 March 2022 31 August 2022
Company Limited 2.1500%
China Merchants Group Finance Fixed interest rate of
10,054,271.23 30 March 2022 26 September 2022
Company Limited 2.1300%
China Merchants Group Finance Fixed interest rate of
10,008,767.12 15 June 2022 12 December 2022
Company Limited 2.0000%
Total 160,163,967.57
- 144 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(4) Borrowings and loans with related parties - continued
Commencement
Related party Amount Maturity date Description
date
For the period from 1 January to 30 June 2021
Borrowings
China Merchants Group Finance Fixed interest rate of
197,112,248.22 1 March 2021 21 June 2024
Company Limited 1.2000%
China Merchants Group Finance Fixed interest rate of
80,661,051.60 17 May 2021 12 March 2029
Company Limited 4.5100%
China Merchants Group Finance Fixed interest rate of
58,800,000.00 8 April 2021 31 October 2023
Company Limited 1.2000%
China Merchants Group Finance Fixed interest rate of
50,044,968.20 11 June 2021 10 June 2022
Company Limited 3.8500%
China Merchants Group Finance Fixed interest rate of
47,050,263.90 9 April 2021 8 April 2022
Company Limited 3.8500%
China Merchants Group Finance Fixed interest rate of
33,029,679.02 25 June 2021 24 June 2022
Company Limited 3.8500%
China Merchants Group Finance Fixed interest rate of
30,030,917.00 10 May 2021 9 May 2022
Company Limited 3.7100%
China Merchants Group Finance Fixed interest rate of
20,021,388.90 19 April 2021 18 April 2022
Company Limited 3.8500%
China Merchants Group Finance Fixed interest rate of
10,075,542.47 7 June 2021 4 December 2021
Company Limited 2.5500%
China Merchants Group Finance Fixed interest rate of
10,016,767.12 22 March 2021 18 September 2021
Company Limited 2.7300%
Total 536,842,826.43
(5) Asset transfer with related parties
Pricing method
and decision Amount incurred
Content of Amount incurred
Related Party procedures of in the current
transaction in the prior period
related period
transactions
Hoi Tung (Shanghai) Company Machinery and
Negotiation - 1,371,681.42
Limited equipment
(6) Compensation for key management personnel
Item Closing balance Opening balance
Compensation for key management personnel 7,241,617.16 8,523,459.60
- 145 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties
(1) Amounts due from related parties
Item Related party Closing balance Opening balance
China Merchants Bank Co., Ltd. 3,876,849,179.07 2,563,011,212.30
Cash and bank
China Merchants Group Finance Company Limited 1,553,110,447.21 2,178,303,655.54
balances
Total 5,429,959,626.28 4,741,314,867.84
Held-for-trading
China Merchants Bank Co., Ltd. 1,000,000,000.00 901,314,575.34
financial assets
COSCO Logistics (Zhanjiang) Co., Ltd. 18,069,327.33 5,211,554.51
Dalian Container Terminal Co., Ltd. 14,133,025.92 330,000.60
Antong Holdings Co., Ltd. and its subordinate companies 14,004,165.13 13,014,575.59
Qingdao Qianwan United Container Terminal Co., Ltd. 7,929,275.99 1,049,999.99
Yiu Lian Dockyards (Shekou) Limited 7,152,087.50 4,414,431.20
Liaoning Port and its subsidiaries 7,111,862.00 1,414,964.00
Sinoway Shipping Ltd. 6,033,843.55 512,749.94
China Merchants International Shipping Agency (Shenzhen) Co.,
4,078,736.57 1,341,323.72
Ltd.
Qingdao Qianwan West Port United Wharf Co., Ltd. 4,018,282.21 2,315,131.88
Panjin Port Group Co., Ltd. 3,207,250.15 1,467,000.00
Khor Ambado FZCo 2,983,812.58 2,842,053.59
Liaogang Holding (Yingkou) Co., Ltd 2,900,944.06 857,597.32
Qingdao Sinotrans Mining Technology Co., Ltd. 2,494,652.53 -
Accounts China Marine Shipping Agency Guangdong Co., Ltd. 2,346,438.25 1,970,902.79
receivable Great Horn Development Company FZCo 2,125,705.50 2,606,831.64
Liaoning Electronic Port Co., Ltd 1,900,047.95 -
Yingkou New Port Ore Terminal Co., Ltd. 1,843,785.93 150,552.57
Port De Djibouti S.A. 1,699,661.25 1,618,911.45
China Merchants Port Investment Development Co., Ltd. 1,533,840.00 -
Yingkou Port Group Co., Ltd. 1,439,433.15 3,333,618.62
Sinotrans Container Lines Co., Ltd. 1,379,961.75 1,436,388.75
China Ocean Shipping Agency Shenzhen 1,185,087.09 1,418,539.82
China Marine Shipping Agency Ningbo Co., Ltd. 1,130,408.10 6,502,287.89
China Merchants Zhangzhou Development Zone Co., Ltd. 1,000,608.00 642,585.00
Sinotrans (HK) Shipping Limited 126,979.95 1,068,888.42
China Merchants International Cold Chain (Shenzhen) Company
47,379.74 1,215,660.73
Limited
Other related parties 35,704,830.88 9,753,701.53
Total 147,581,433.06 66,490,251.55
SIPG 1,240,949,440.54 -
Nanshan Group and its subsidiaries 314,619,000.00 185,070,000.00
Liaoning Port and its subsidiaries 73,133,008.80 -
Dividends Merchants Port City 41,847,044.77 41,847,044.77
receivable COSCO Logistics (Zhanjiang) Co., Ltd. 18,403,959.77 18,403,959.77
Tin-Can Island Container Terminal Ltd - 19,076,909.00
Other related parties 485,820.79 277,072.09
Total 1,689,438,274.67 264,674,985.63
- 146 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Item Related party Closing balance Opening balance
Chu Kong River Trade Terminal Co., Ltd. 32,953,940.00 32,953,940.00
Port de Djibouti S.A. 23,564,625.00 22,681,372.48
Shenzhen Qianhai Shekou Free Trade Investment Development
6,310,000.00 6,000,000.00
Co. Ltd.
China Merchants Shenzhen Ro-Ro Shipping Co., Ltd. 2,899,163.95 2,899,163.95
Zhoushan Blue Ocean Investment Co., Ltd. 2,899,163.95 4,996,989.39
Nanshan Group and its subsidiaries 1,789,094.72 129,239.70
Other EuroAsia Dockyard Enterprise and Development Limited 1,439,734.12 1,380,231.20
receivables International Djibouti Industrial Parks Operation FZCO 1,356,431.95 377,571.40
China Merchants Commercial Property Investment (Shenzhen)
1,132,846.40 1,132,846.40
Co., Ltd.
COSCO Logistics (Zhanjiang) Co., Ltd. 122,122.00 2,190,539.40
Zhanjiang Infrastructure Construction Investment Group Co., Ltd. - 4,907,365.06
China Merchants Port Investment Development Co., Ltd. - 5,000,000.00
Other related parties 4,434,660.52 6,210,835.23
Total 78,901,782.61 90,860,094.21
Advance
Other related parties 759,688.13 -
payment
Non-current Port of Newcastle and its subsidiaries 90,299,558.08 60,029,243.30
assets due Terminal Link SAS 44,546,075.28 42,429,677.59
within one year Total 134,845,633.36 102,458,920.89
China Merchants Finance Lease (Shanghai) Co., Ltd. 6,200,000.00 -
China Merchants Finance Lease (Tianjin) Co., Ltd. 4,447,962.42 10,000,000.00
Long-term Terminal Link SAS 2,813,436,329.08 2,679,769,106.42
receivables Port of Newcastle and its subsidiaries 754,563,615.00 750,086,910.62
Tianjin Haitian Bonded Logistics Co., Ltd. 34,300,000.00 34,300,000.00
Total 3,612,947,906.50 3,474,156,017.04
Other non-current
China Traffic Import and Export Co., Ltd. 20,854,077.98 20,854,077.98
assets
(2) Amounts due to related parties
Item Related party Closing balance Opening balance
Short-term
China Merchants Group Finance Company Limited 2,291,960,833.31 3,393,366,381.96
borrowings
Other current
China Merchants Group Finance Company Limited 30,133,134.24 10,012,082.19
liabilities
Antong Holdings Co., Ltd. and its subordinate companies 20,554,000.00 -
Nanshan Group and its subsidiaries 11,149,297.83 3,154,427.56
Shenzhen Bay Electricity Industry Co., Ltd. 6,712,820.33 4,987,709.79
Qingdao Qianwan West Port United Wharf Co., Ltd. 5,448,274.23 6,742,200.79
EuroAsia Dockyard Enterprise and Development Limited 2,568,871.37 3,142,704.91
Accounts
Hoi Tung (Shanghai) Company Limited 1,676,281.00 72,436.00
payable
Ningbo Zhoushan 1,638,149.08 1,159,307.43
Yiu Lian Dockyards Limited 1,393,066.07 2,651,200.00
Djibouti International Hotel Company 1,022,577.71 179,738.97
Other related parties 3,522,506.78 3,483,956.79
Total 55,685,844.40 25,573,682.24
Qingdao Wutong Century Supply Chain Co., Ltd. 2,885,541.70 -
Receipts in
Other related parties 760,032.04 53,057.84
advance
Total 3,645,573.74 53,057.84
- 147 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties - continued
Item Related party Closing balance Opening balance
Dalian Container Terminal Co., Ltd. 6,118,133.20 3,573,179.78
Shenzhen Baohong Technology Co., Ltd. 3,378,575.24 -
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 3,072,517.64 -
COSCO Logistics (Zhanjiang) Co., Ltd. 2,016,731.30 346,980.78
Dandong Port Group Co., Ltd. 1,461,375.20 568,527.60
Contract
China Marine Shipping Agency Guangdong Co., Ltd. 1,249,802.47 -
liabilities
Qingdao Sinotrans Supply Chain Management Co., Ltd. 411,914.60 1,578,302.00
Antong Holdings Co., Ltd. and its subordinate companies 132,332.60 1,994,209.18
Qingdao Qianwan United Container Terminal Co., Ltd. 69,890.00 1,050,000.00
Other related parties 2,488,115.17 1,981,553.30
Total 20,399,387.42 11,092,752.64
Ningbo Zhoushan 100,465,755.99 -
Zhanjiang Infrastructure Construction Investment Group Co., Ltd. 99,560,234.06 -
China Merchants Zhangzhou Development Zone Co., Ltd. 20,000,000.00 20,000,000.00
Dividends Dalian Port Container 16,549,264.69 18,349,264.69
Payable China Merchants Port Investment Development Co., Ltd. 14,474,539.30 -
Jifa Logistics 4,945,967.80 4,945,967.80
Orienture Holdings Company Limited 1,839,672.00 -
Total 257,835,433.84 43,295,232.49
China Merchants Real Estate (Shenzhen) Co., Ltd. 10,079,369.00 10,079,369.00
China Merchants Commercial Property Investment (Shenzhen) Co., Ltd. 7,255,835.12 7,839,816.47
Antong Holdings Co., Ltd. and its subordinate companies 4,743,266.37 8,077,252.00
Terminal Link SAS 4,105,385.52 3,910,337.39
China Merchants Port Investment Development Co., Ltd. 3,727,609.61 7,417,802.54
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 3,210,410.34 -
Other payables Hoi Tung (Shanghai) Company Limited 1,660,600.00 655,300.00
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1,621,810.64 1,579,720.16
Zhanjiang Xiagang United Development Co., Ltd. 1,439,753.57 1,433,473.84
China Merchant Food (China) Co., Ltd. 1,069,017.00 1,069,017.00
Port de Djibouti S.A. - 254,894,592.46
Other related parties 6,730,409.63 4,763,928.21
Total 45,643,466.80 301,720,609.07
China Merchants Finance Lease (Shanghai) Co., Ltd. 103,754,749.25 104,204,701.37
Nanshan Group and its subsidiaries 88,946,448.13 56,174,150.92
China Merchants Tongshang Finance Lease Co., Ltd. 52,966,076.31 60,639,407.07
Non-current China Merchants Finance Lease (Tianjin) Co., Ltd. 36,421,930.07 32,788,124.97
liabilities due China Merchants Group Finance Company Limited 15,811,016.33 27,106,533.22
within one EuroAsia Dockyard Enterprise and Development Limited 6,893,253.20 13,030,256.95
year China Merchants Commercial Property Investment (Shenzhen) Co., Ltd. 3,140,860.68 6,029,278.06
China Merchants International Cold Chain (Shenzhen) Company Limited 1,236,523.87 961,513.13
China Merchants Bank Co., Ltd. 204,600.00 4,227,333.34
Total 309,375,457.84 305,161,299.03
Other
non-current Nanshan Group and its subsidiaries. 5,948,975.01 1,020,381.51
liabilities
China Merchants Finance Lease (Shanghai) Co., Ltd. 126,666,879.79 177,500,213.13
Nanshan Group and its subsidiaries 100,517,065.26 58,651,209.31
China Merchants Finance Lease (Tianjin) Co., Ltd. 31,666,736.63 47,500,069.97
China Merchants Tongshang Finance Lease Co., Ltd. 22,603,365.11 44,730,575.22
Lease liabilities
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 20,496,911.80 -
China Merchants International Cold Chain (Shenzhen) Company Limited 777,192.38 1,353,404.41
Other related parties 358,612.01 181,987.02
Total 303,086,762.98 329,917,459.06
China Merchants Group Finance Company Limited 540,140,693.27 543,744,022.45
Long-term
China Merchants Bank Co., Ltd. 198,000,000.00 196,000,000.00
borrowings
Total 738,140,693.27 739,744,022.45
- 148 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIV) SHARE-BASED PAYMENTS
1. Summary of share-based payments
Total number of the Company's equity instruments
None
granted during the period
Total number of the Company's equity instruments
None
vested during the period
Total number of the Company's equity instruments
None
lapsed during the period
Range of exercise prices and remaining contractual life
Exercise price is RMB15.09 to RMB17.34;
of the Company's share options outstanding at the
remaining contractual life is 55 months
end of the period
Range of exercise prices and remaining contractual
life of the Company's other equity instruments None
outstanding at the end of the period
2. Equity-settled share-based payments
The method of determining the fair value of equity The Black-Scholes model is adopted to estimate the
instruments at the grant date cost of granted stock options
On each asset and liability date in the waiting period,
the best estimate is made and the number of equity
The method of determining the best estimate of the
instruments expected to be vested is revised based on
number of equity instruments expected to be vested
the latest obtained follow-up information such as
changes in the number of vested employees.
Reasons for the significant difference between the estimate Criteria of exercising in exercise period of batch 1 are
in the current period and that in the prior period not satisfied
Amounts of equity-settled share-based payments
13,405,215.31
accumulated in capital reserve
Total expenses recognized arising from equity-settled
5,964,644.61
share-based payments
Pursuant to the Official Reply on the Implementation of the Stock Option Incentive Plan of China
Merchants Port Group Co., Ltd. by State-owned Assets Supervision and Administration
Commission of the State Council, (No. 748 [2019], SASAC), and which was deliberated and
approved by the 1st Extraordinary General Meeting of the Company in 2020 on 3 February 2020,
the Company granted 238 incentive recipients 17,198,000 stock options with an exercise price of
RMB17.80 per share. With a lockup period of 24 months from the granting date, the share options
are exercisable upon expiry of the 24-month lockup period in the premise that the vesting
conditions are satisfied. The share options are exercisable in three batches, specifically 40% for
the first batch (after 24 months but within 36 months subsequent to the granting date), 30% for the
second batch (after 36 months but within 48 months subsequent to the granting date); 30% for the
third batch (after 48 months but within 84 months subsequent to the granting date); each share
option represents the right to subscribe a share of ordinary share of the Company.
- 149 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIV) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments - continued
According to Article 32 of Stock Option Incentive Plan, since the grant date of the stock option, if
the Company distributes dividends prior to the exercise of the option, the exercise price shall be
adjusted accordingly. Therefore, the Company uniformly adjusted the exercise price from
RMB17.34 per share to 16.96 per share on 29 January 2022 in respect of the first batch of stock
option granted under stock option incentive plan (phase I).
On 5 March 2021, the granting of stock option (reserved portion) under stock option inventive
plan (phase I) was completed. The reserved portion of stock option targets to total 3 persons,
granting 530,000 shares of stock option with exercise price of RMB15.09 per share. The granting
date is 29 January 2021. On 29 January 2022, the Company adjusted the exercise price of the
reserved portion of stock option to RMB 14.71 per share. With a lockup period of 24 months from
the granting date, the share options are exercisable upon expiry of the 24-month lockup period in
the premise that the vesting conditions are satisfied. The share options are exercisable in two
batches, specifically 50% for the first batch (after 24 months but within 36 months subsequent to
the granting date), and the remaining 50% for the second batch (after 36 months but within 72
months subsequent to the granting date); each share option represents the right to subscribe a
share of ordinary share of the Company.
On 14 February 2022, the Company cancelled 6,380,000 stock options corresponding to the first
exercise period of the stock option (initially granted batch) under stock option inventive plan
(phase I) of the Company because the vesting conditions of the first exercise period of the stock
option (initially granted batch) under stock option inventive plan (phase I) of the Company have
not been fulfilled. Since 10 recipients to the incentive plan retired or ceased to be employed by the
Company, the corresponding 1.248 million stock options were cancelled.
(XV) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item Closing balance Opening balance
Commitments that have been entered into but have not been
recognized in the financial statements
- Commitment to inject capital in investees 42,747,324.72 211,620,680.00
- Commitment to acquire long-term assets 1,863,192,595.34 1,755,687,773.54
- Commitment to invest port construction 5,347,994.64 5,093,914.88
-Others - -
Total 1,911,287,914.70 1,972,402,368.42
- 150 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XV) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies
Item Closing balance Opening balance
Contingent liabilities arising from litigations (Note 1) 240,631,161.74 207,807,928.33
Guarantees for borrowings of associates (Note 2) 184,410,008.80 175,517,115.86
Total 425,041,170.54 383,325,044.19
Note 1:This represents the significant contingent liabilities arising from the litigations between TCP
and its subsidiaries and local tax authority, employee or former employee of TCP and its
subsidiaries in Brazil as at 30 June 2022. According to the latest estimates of the Group's
management, the possible compensation is RMB 240,631,161.74 but it is not likely to cause
outflow of economic benefits from the Group. Therefore, the contingent liabilities arising
from the above pending litigations are not recognized as provisions. The counter-
bonification where the Group as the beneficiary will be executed by the former TCP
shareholder that disposed the shares. According to the counter-bonification agreement, the
former TCP shareholder need to make counter-bonification to the Group in respect of the
above contingent liabilities, with the compensation amount not exceeding pre-determined
amount and specified period.
Note 2:As of 30 June 2022, the guarantees provided by the Group to related parties are set out in
Note XIII 5 (3).
As of 30 June 2022, the Group's directors assessed the risk of default by related parties in respect
of above loans and other liabilities. The directors believe that the risk is immaterial and there is
minor possibility of loss due to the guarantee.
As of 30 June 2022, in addition to aforesaid contingencies, the Group had no other significant
guarantee or contingencies that need to be explained.
(XVI) OTHER SIGNIFICANT EVENTS
1. Segment reporting
(1) Basis for determining reporting segments and accounting policies
The key management team of the Company is regarded as the CODM, who reviews the Group's
internal reports in order to assess performance, allocate resources and determine the operating
segments.
Individual operating segments for which discrete financial information is available are identified
by the CODM and are operated by their respective management teams. These individual operating
segments are aggregated in arriving at the reporting segments of the Group.
From business and financial perspectives, management assesses the performance of the Group's
business operations including ports operation, bonded logistics operation and other operations.
- 151 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVI) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(1) Basis for determining reporting segments and accounting policies - continued
Ports operation
Ports operation includes container terminal operation, bulk and general cargo terminal operation
operated by the Group and its associates and joint ventures.
The Group's ports operation is reported as follows:
(a) Mainland China, Hong Kong and Taiwan
Pearl River Delta
Yangtze River Delta
Bohai Rim
Others
(b) Other locations outside of Mainland China, Hong Kong and Taiwan
Bonded logistics operation
Bonded logistics operation includes logistics park operation, ports transportation and airport cargo
handling operated by the Group and its associates and joint ventures.
Other operations
Other operations mainly include property development and investment and construction of
modular housing operated by the Group's associates, property investment operated by the Group
and corporate function.
Each of the segments under ports operation include the operations of a number of ports in various
locations within one geographic location, each of which is considered as a separate operating
segment by the CODM. For the purpose of segment reporting, these individual operating
segments have been aggregated into reportable segments on geographic basis in order to present a
more systematic and structured segment information. To give details of each of the operating
segments, in the opinion of the directors of the Company, would result in particulars of excessive
length.
Bonded logistics operation and other operations include a number of different operations, each of
which is considered as a separate but insignificant operating segment by the CODM. For segment
reporting, these individual operating segments have been aggregated according to the natures of
their operations to give rise to more meaningful presentation.
There are no material sales or other transactions between the segments.
The revenue from a major customer of ports operation amounts to RMB792,737,726.08
representing 9.73%(For the period from 1 January to 30 June 2021: 11.39%) of the Group's
operating income for the period from 1 January to 30 June 2022.
- 152 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVI) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Segment financial information
Segment financial information for the period from 1 January to 30 June 2022 is as follows:
Ports operation
Bonded logistics
Item Mainland China, Hong Kong and Taiwan Others Unallocated amount Total
Other locations Sub-total operation
Pearl River Delta Yangtze River Delta Bohai Rim Others
Operating income 3,437,254,973.24 649,729,096.28 33,866,877.90 1,822,644,054.87 1,929,566,724.83 7,873,061,727.12 209,325,133.72 68,075,506.35 - 8,150,462,367.19
Operating cost 1,791,680,082.04 343,952,485.60 28,294,068.61 1,360,000,630.46 857,769,752.09 4,381,697,018.80 140,757,242.05 114,914,620.80 - 4,637,368,881.65
Segment operating profit
1,645,574,891.20 305,776,610.68 5,572,809.29 462,643,424.41 1,071,796,972.74 3,491,364,708.32 68,567,891.67 -46,839,114.45 - 3,513,093,485.54
(loss)
Adjustments:
Taxes and levies 17,161,332.92 1,358,396.15 762,863.49 23,747,540.44 67,784,031.58 110,814,164.58 12,788,139.20 11,850,114.01 62,122.28 135,514,540.07
Administrative expense 270,644,263.09 17,935,889.67 4,250,850.13 237,984,292.95 122,959,475.16 653,774,771.00 21,787,475.08 446,314.03 136,494,100.44 812,502,660.55
R&D expenses 85,639,559.26 20,872,358.80 - 8,321,260.44 - 114,833,178.50 - - - 114,833,178.50
Financial expenses 276,346,849.08 659,765.82 7,690,043.58 57,874,751.32 165,538,736.00 508,110,145.80 6,188,760.36 19,390,223.92 818,255,917.59 1,351,945,047.67
Other income 35,886,617.08 1,815,528.87 4,938.74 32,722,306.05 - 70,429,390.74 14,863,880.13 2,187,553.78 - 87,480,824.65
Investment income (losses) 222,407,406.65 3,122,887,164.02 154,507,069.27 9,989,435.08 767,552,861.09 4,277,343,936.11 6,389,216.81 60,318,392.00 11,222,220.57 4,355,273,765.49
Gains (losses) from changes
79,496,786.92 -95,524,728.92 -21,842,804.35 412.59 - -37,870,333.76 - -155,778.82 - -38,026,112.58
in fair value
Impairment gains (losses)
-1,942,682.66 - - 4,342,920.16 482,175.11 2,882,412.61 - - - 2,882,412.61
of credit
Impairment gains of assets - - - - - - - - - -
Gains from disposal of assets -32,342.56 - - -346,988.65 61,853.55 -317,477.66 110,201.29 - - -207,276.37
Operating profit (loss) 1,331,598,672.28 3,294,128,164.21 125,538,255.75 181,423,664.49 1,483,611,619.75 6,416,300,376.48 49,166,815.26 -16,175,599.45 -943,589,919.74 5,505,701,672.55
- 153 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVI) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Segment financial information - continued
Segment financial information for the period from 1 January to 30 June 2022 is as follows: - continued
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics
Item Others Unallocated amount Total
Yangtze River Other locations Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 6,425,934.28 2,180,354.30 - 4,974,803.02 3,493,529.85 17,074,621.45 11,941.39 910,887.14 2,195,476.41 20,192,926.39
Non-operating
250,767.85 476,966.36 - 1,129,049.42 18,400,674.66 20,257,458.29 10,000.00 - - 20,267,458.29
expenses
Gross profit (loss) 1,337,773,838.71 3,295,831,552.15 125,538,255.75 185,269,418.09 1,468,704,474.94 6,413,117,539.64 49,168,756.65 -15,264,712.31 -941,394,443.33 5,505,627,140.65
Income tax expenses 305,390,922.81 177,758,958.64 10,748,969.92 31,804,010.22 73,012,182.85 598,715,044.44 8,837,765.12 17,616,830.97 474,076.89 625,643,717.42
Net profit (loss) 1,032,382,915.90 3,118,072,593.51 114,789,285.83 153,465,407.87 1,395,692,292.09 5,814,402,495.20 40,330,991.53 -32,881,543.28 -941,868,520.22 4,879,983,423.23
Segment assets 27,200,944,019.41 42,754,860,411.26 7,681,007,278.79 27,461,201,359.53 43,427,644,360.77 148,525,657,429.76 3,186,498,586.20 19,088,328,467.89 11,638,089,677.23 182,438,574,161.08
Total assets in the financial statements 182,438,574,161.08
Segment liabilities 11,511,357,979.79 1,812,382,983.01 159,992,555.78 7,366,101,644.17 8,063,092,335.40 28,912,927,498.15 559,051,005.65 1,163,813,908.80 38,601,130,095.90 69,236,922,508.50
Total liabilities in the financial statements 69,236,922,508.50
Supplementary
information:
Depreciation and
559,603,223.95 100,562,353.38 442,056.80 413,612,906.24 388,560,970.07 1,462,781,510.44 44,104,972.79 95,688,815.80 14,164,397.97 1,616,739,697.00
Amortization
Interest income 49,017,244.18 1,761,808.44 241,384.75 13,886,086.48 136,859,829.48 201,766,353.33 616,620.57 734,545.62 9,703,269.85 212,820,789.37
Interest expense 294,081,375.30 925,454.87 - 66,577,626.64 286,248,544.77 647,833,001.58 6,767,316.18 13,811,624.52 472,585,487.39 1,140,997,429.67
Investment income
from long-term
137,319,816.05 3,085,589,502.22 144,254,258.27 9,749,433.61 767,552,861.09 4,144,465,871.24 6,389,216.81 60,318,392.00 - 4,211,173,480.05
equity investment
under equity method
Long-term equity
investment under 4,537,827,361.63 35,644,874,787.82 6,786,848,134.06 521,301,077.63 12,364,270,383.84 59,855,121,744.98 966,678,378.30 13,719,401,584.88 - 74,541,201,708.16
equity method
Non-current assets
other than long-term 18,589,927,373.04 4,126,822,152.28 16,269,568.95 21,389,451,171.39 24,316,735,231.09 68,439,205,496.75 1,906,626,843.14 4,780,752,262.04 476,415,762.85 75,603,000,364.78
equity investment
- 154 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVI) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Segment financial information - continued
The Group's revenue by geographical areas of operations and information about its non-current
assets other than financial instruments and deferred tax assets presented based on the geographical
areas in which the assets are located as follows:
Amount incurred in Amount incurred in
Revenue from external transactions
the current period the prior period
Mainland China, Hong Kong and Taiwan 6,200,189,217.85 5,552,294,281.37
Pearl River Delta 3,622,864,022.12 3,181,051,472.13
Yangtze River Delta 649,729,096.28 445,352,534.85
Bohai Rim 104,952,044.58 90,680,819.77
Others 1,822,644,054.87 1,835,209,454.62
Other locations 1,950,273,149.34 1,787,648,580.89
Total 8,150,462,367.19 7,339,942,862.26
Total non-current assets Closing balance Opening balance
Mainland China, Hong Kong and Taiwan 112,655,827,248.04 109,645,185,780.08
Pearl River Delta 46,892,708,473.86 45,414,657,732.10
Yangtze River Delta 36,473,533,205.13 34,860,356,989.30
Bohai Rim 7,334,807,498.12 7,318,137,784.88
Others 21,954,778,070.93 22,052,033,273.80
Other locations 37,488,374,824.90 35,806,732,228.78
Total 150,144,202,072.94 145,451,918,008.86
(3) Degree of reliance on major customers
The total operating income derived from the top five clients of the Group is RMB 1,873,612,820.56,
accounting for 22.99% of the Group's total operating income.
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Other receivables
(1) Summary of other receivables
Item Closing balance Opening balance
Dividends receivable 241,273,334.61 177,295,422.67
Other receivables 1,289,050,051.27 1,079,447,548.34
Total 1,530,323,385.88 1,256,742,971.01
- 155 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
1. Other receivables - continued
(2) Dividends receivable
(a) Disclosure of dividends receivable
Company name Closing balance Opening balance
Chiwan Wharf (Hong Kong) 147,680,363.88 147,680,363.88
Dongguan Chiwan Terminal Co., Ltd. 51,235,537.37 13,691,538.79
Dongguan Chiwan Warf Co., Ltd. 18,111,237.23 -
China Merchants Bonded Logistics Co., Ltd. 15,707,120.00 15,707,120.00
CMPort 8,322,676.13 -
Shenzhen Petrochemical Industry (Group) Co., Ltd. 216,400.00 216,400.00
Total 241,273,334.61 177,295,422.67
Less: Provision for credit loss - -
Carrying amount 241,273,334.61 177,295,422.67
(b) Significant dividends receivable aging over 1 year
Closing Opening Impaired
Item Aging Reason for outstanding
balance balance or not
Procedures are being handled and
Chiwan Wharf (Hong More than 1 year but
147,680,363.88 147,680,363.88 it is expected to be recovered in No
Kong) not exceeding 2 years
2022
Procedures are being handled and
China Merchants Bonded
15,707,120.00 Over 3 years 15,707,120.00 it is expected to be recovered in No
Logistics Co., Ltd.
2022
Total 163,387,483.88 163,387,483.88
(3) Other receivables
(a) Disclosure of other receivables by aging
Closing balance
Aging Provision for credit Proportion of
Other receivables
loss provision (%)
Within 1 year 286,720,001.11 - -
1 to 2 years 177,643,366.12 - -
2 to 3 years 358,965,341.32 - -
Over 3 years 466,104,799.32 383,456.60 0.08
Total 1,289,433,507.87 383,456.60 ——
(b) Provision for credit loss of other receivables
As part of the Company's credit risk management, the Company performs internal credit rating on
customers, and determines the expected loss ratio of other receivables under each credit rating. Such
expected average loss ratio is based on historical actual impairment and taking into consideration
of current and expected future economic conditions.
- 156 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
1. Other receivables - continued
(3) Other receivables - continued
(b) Provision for credit loss of other receivables - continued
At 30 June 2022, the credit risk and expected credit loss of other receivables by categories of customers are as follows:
Closing balance Opening balance
Expected credit Lifetime ECL Lifetime ECL
Credit rating Lifetime ECL Lifetime ECL
loss ratio (%) 12-month ECL (not credit- Total 12-month ECL (not credit- Total
(credit-impaired) (credit-impaired)
impaired) impaired)
A 0.00-0.10 1,289,050,051.27 - - 1,289,050,051.27 1,079,447,548.34 - - 1,079,447,548.34
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 383,456.60 383,456.60 - - 383,456.60 383,456.60
Carrying amount 1,289,050,051.27 - 383,456.60 1,289,433,507.87 1,079,447,548.34 - 383,456.60 1,079,831,004.94
Provision for
- - 383,456.60 383,456.60 - - 383,456.60 383,456.60
credit loss
Book value 1,289,050,051.27 - - 1,289,050,051.27 1,079,447,548.34 - - 1,079,447,548.34
- 157 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
1. Other receivables - continued
(3) Other receivables - continued
(c) Changes in provision for credit loss of other receivables
Stage 1 Stage 2 Stage 3
Lifetime ECL
Item Lifetime ECL Total
12-month ECL (not credit-
(credit-impaired)
impaired)
Balance at 1 January 2022 - - 383,456.60 383,456.60
Carrying amount of other receivables at 1 January 2022
-- transfer to stage 2 - - - -
-- transfer to stage 3 - - - -
-- transfer back to stage 2 - - - -
-- transfer back to stage 1 - - - -
Provision for the period - - - -
Reversal - - - -
Transfer out due to
derecognition of financial
- - - -
assets (including direct
write-down)
Other changes - - - -
Balance at 30 June 2022 - - 383,456.60 383,456.60
(d) Changes in carrying amount of other receivables
Stage 1 Stage 2 Stage 3
Carrying amount Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
Balance at 1 January 2022 1,079,447,548.34 - 383,456.60 1,079,831,004.94
Transfer in the current year:
-- transfer to stage 2 - - - -
-- transfer to stage 3 - - - -
-- transfer back to stage 2 - - - -
-- transfer back to stage 1 - - - -
Increase 209,602,502.93 - - 209,602,502.93
Derecognition - - - -
Other changes - - - -
Balance at 30 June 2022 1,289,050,051.27 - 383,456.60 1,289,433,507.87
(e) The Company has no recovery or reversal of significant credit loss allowance in the
current year.
- 158 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
1. Other receivables - continued
(3) Other receivables - continued
(f) Other receivables by nature
Item Closing balance Opening balance
Amounts due from related parties 1,277,594,227.98 1,072,941,653.53
Advances 4,810,136.67 4,741,428.81
Others 7,029,143.22 2,147,922.60
Total 1,289,433,507.87 1,079,831,004.94
Less: Provision for credit loss 383,456.60 383,456.60
Book value 1,289,050,051.27 1,079,447,548.34
(g) There is no other receivables write-off during this period.
(h) The top five balances of other receivables classified by debtor
Proportion of Closing
Relationship
the amount to balance of
Company name with the Nature Closing balance Aging
the total other provision for
Company
receivable (%) credit loss
Within 1 year;
More than 1 year
but not exceeding 2
Loan to related
Shenzhen Haixing Subsidiary 1,277,594,227.98 years; More than 2 99.08 -
parties
years but not
exceeding 3 years;
More than 3 years
GuangDong United Assets
Third party Others 5,000,000.00 Within 1 year 0.39 -
and Equity Exchange
Temporary
CMIT Subsidiary 2,467,600.00 Within 1 year 0.19 -
payments
Payment of social security
Temporary
and enterprise annuity on Third party 2,342,536.67 Within 1 year 0.18 -
payments
behalf of employees
Shenzhen Tax Service,
Subsidiary Others 711,772.07 More than 3 years 0.06 383,456.60
Shekou Office
Total 1,288,116,136.72 99.90 383,456.60
- 159 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Long-term equity investments
Changes for the period
Reconciling items Announced Effect of Closing balance
Investee 1/1/2022 Investment income 30/6/2022 of impairment
from other Other equity distribution of Impairment changes in
Increase Decrease under equity provision
comprehensive movements cash dividends or provision foreign
method
income profit exchange
I. Subsidiary
Shenzhen Chiwan International Freight Agency Co., Ltd. 5,500,000.00 - - - - - - - - 5,500,000.00 -
Shenzhen Chiwan Harbor Container Co. Ltd. 250,920,000.00 - - - - - - - - 250,920,000.00 -
Shenzhen Chiwan Port Development Co., Ltd. 206,283,811.09 - - - - - - - - 206,283,811.09 -
Chiwan Wharf (Hong Kong) 1,070,000.00 - - - - - - - - 1,070,000.00 -
Shenzhen Chiwan Tugboat Co., Ltd. 24,000,000.00 - - - - - - - - 24,000,000.00 -
Chiwan Container Terminal Co., Ltd. 421,023,199.85 - - - - - - - - 421,023,199.85 -
Shenchiwan Port Affairs 186,525,000.00 - - - - - - - - 186,525,000.00 -
Dongguan Chiwan Warf Co., Ltd. 175,000,000.00 - - - - - - - - 175,000,000.00 -
Chiwan Shipping (Hong Kong) Limited 1,051,789.43 - - - - - - - - 1,051,789.43 -
CMPort (Note 1) 29,290,281,157.45 77,941,666.53 -29,203,045,325.40 - - - - - - 165,177,498.58 -
Zhoushan RoRo Terminal 149,709,800.00 - - - - - - - - 149,709,800.00 -
Zhanjiang port 3,381,825,528.52 - - - - - - - - 3,381,825,528.52 -
China Merchants International Information Technology
20,561,075.02 - - - - - - - - 20,561,075.02 -
Co., Ltd.
Sanya Merchants Port Development Co., Ltd. 2,040,000.00 - - - - - - - - 2,040,000.00 -
Port Development (Hong Kong) (Note 2) - 29,203,045,326.23 - - - - - - - 29,203,045,326.23 -
Sub-total 34,115,791,361.36 29,280,986,992.76 -29,203,045,325.40 - - - - - - 34,193,733,028.72 -
II. Associate
China Merchants Bonded Logistics Co., Ltd. 395,249,112.00 - - 6,333,600.61 - - - - - 401,582,712.61 -
China Merchants Northeast Asia Development
1,016,048,532.69 - - 3,357,030.81 - - - - - 1,019,405,563.50 -
Investment Co., Ltd.
Ningbo Zhoushan 1,792,998,234.68 - - 64,801,085.35 -1,388,999.70 1,337,524.70 -39,140,468.28 - - 1,818,607,376.75 -
Sub-total 3,204,295,879.37 - - 74,491,716.77 -1,388,999.70 1,337,524.70 -39,140,468.28 - - 3,239,595,652.86 -
III. Joint venture
Yantai Port Group Laizhou Port Co., Ltd. 791,515,741.44 - - 22,069,427.08 - - -29,259,207.08 - - 784,325,961.44 -
China Merchants Antong Logistics Management
9,727,878.94 - - 67,008.50 - - - - - 9,794,887.44 -
Company
Fujian Zhaohang Logistics Management Partnership
511,210,432.62 - - 40,938,797.77 - - - - - 552,149,230.39 -
(Limited Partnership)
Investment Fund (Note 3) - 1,085,852.21 -1,047,401.66 -38,450.55 - - - - - - -
Shenzhen Gangteng Internet Technology Co., Ltd. (Note 4) - 11,250,000.00 - -643,233.29 - - - - - 10,606,766.71 -
Sub-total 1,312,454,053.00 12,335,852.21 -1,047,401.66 62,393,549.51 - - -29,259,207.08 - - 1,356,876,845.98 -
Total 38,632,541,293.73 29,293,322,844.97 -29,204,092,727.06 136,885,266.28 -1,388,999.70 1,337,524.70 -68,399,675.36 - - 38,790,205,527.56 -
- 160 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
2. Long-term equity investments - continued
Note 1: Details are set out in Note (X) 1.
Note 2: Details are set out in Note (X) 1. (1).
Note 3: On 24 December 2020, the Company established an Investment Fund jointly with China
Merchants Venture Investment Management Co., Ltd. ("Merchants Venture"), a related
party of the Company, and Shenzhen China Merchants Innovation Investment Fund
Center (Limited Partnership) ("Merchants Innovation Fund"), which was managed by
Merchants Venture, completed the filing with the Asset Management Association of
China on 22 October 2021 and obtained the Certificate of Filing for Private Investment
Fund. In view of the fact that the Investment Fund has not yet commenced actual
investment activities, and considering the overall planning of the Company's capital
operation, on 8 January 2022, the Company, Merchants Venture and Merchants
Innovation Fund agreed to dissolve the Investment Fund and go through the
corresponding liquidation and cancellation procedures.
Note 4: Shenzhen Gangteng Internet Technology Co., Ltd. is a joint venture established by the
Company, Shenzhen Tencent Industry Venture Capital Co., Ltd., CMIT, Shenzhen
Haixing and Shenzhen Zhigang Bilin Internet Technology Partnership (Limited
Partnership) on 24 January 2021, with a capital contribution of RMB 11,250,000.00 paid
by the Company on 23 February 2022.
3. Operating income and operating costs
Amount incurred in Amount incurred in
Item the current period the prior period
Revenue Cost Revenue Cost
Principal operating - 1,132,979.70 - 1,132,979.75
Other operating - - 471,974.86 -
Total - 1,132,979.70 471,974.86 1,132,979.75
- 161 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
4. Investment income
(1) Details of investment income
Amount incurred in Amount incurred in
Item
the current period the prior period
Income from long-term equity investments under cost method 546,403,227.17 912,418,115.63
Long-term equity investments income under equity method 136,885,266.28 86,382,211.38
Income from other equity instruments investments - 460,000.00
Investment income from disposal of long-term equity investments -43,817.42 -
Income from held-for-trading financial assets 79,627,913.70 -
Income from debt investments - 6,017,068.48
Total 762,872,589.73 1,005,277,395.49
(2) Income from long-term equity investments under cost method
Amount incurred in Amount incurred in Reason for changes
Investee
the current period the prior period comparing with prior period
Changes in profit distribution
Dongguan Chiwan Terminal Co., Ltd. 37,543,998.58 48,020,128.82
of investee
Changes in profit distribution
Dongguan Chiwan Warf Co., Ltd. 18,111,237.23 -
of investee
Changes in profit distribution
Shenzhen Chiwan Tugboat Co., Ltd. 29,238,925.84 30,409,076.03
of investee
Shenzhen Chiwan International Freight Changes in profit distribution
231,098.94 89,076.85
Agency Co., Ltd. of investee
Shenzhen Chiwan Port Development Changes in profit distribution
20,415,654.72 14,577,752.63
Co., Ltd. of investee
Changes in profit distribution
CMPort 8,322,676.13 652,351,928.94
of investee
Shenzhen Chiwan Harbor Container Changes in profit distribution
173,751,858.77 143,574,378.69
Co. Ltd. of investee
Changes in profit distribution
Zhanjiang Port (Group) Co., Ltd 91,862,080.91 23,395,773.67
of investee
Changes in profit distribution
Chiwan Container Terminal Co., Ltd. 166,925,696.05 -
of investee
Total 546,403,227.17 912,418,115.63
- 162 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
1. BREAKDOWN OF NON-RECURRING PROFIT OR LOSS
Item Amount Remarks
Losses on disposal of non-current assets -1,794,945.06
Tax refunds or reductions with ultra vires approval or without official approval
-
documents
Government grants recognized in profit or loss (except for grants that are closely
related to the Company's business and are in amounts and quantities fixed in 73,174,992.52
accordance with the national standard)
Money lending income earned from non-financial institutions in profit or loss 112,701,958.95
The excess of attributable fair value of identifiable net assets over the
-
consideration paid for subsidiaries, associates and joint ventures
Gains or losses on exchange of non-monetary assets -
Gains or losses on entrusted investments or assets management -
Provision of impairment losses for each asset due to force majeure, e.g. natural
-
disasters
Gains or losses on debt restructuring -
Business restructuring expenses, e.g., expenditure for layoff of employees,
-
integration expenses, etc.
Gains or losses relating to the unfair portion in transactions with unfair
-
transaction price
Net profit or loss of subsidiaries recognized as a result of business combination
of enterprises under common control from the beginning of the period up to -
the business combination date
Gains or losses arising from contingencies other than those related to normal
-
operating business
Gains from changes of fair value of held-for-trading financial assets, derivative
financial assets, other non-current financial assets, held-for-trading financial
liabilities, derivative financial liabilities other than effective hedging operation
-38,026,112.58
relating to the Company's normal operations, and the investment income from
disposal of the above held-for-trading financial assets/financial liabilities and
other debt investments
Reversal of provision for accounts receivable that are tested for credit loss
3,794,522.98
individually
Gains or losses on entrusted loans -
Gains or losses on changes in the fair value of investment properties that are
-
subsequently measured using the fair value model
Effects on profit or loss of one-off adjustment to profit or loss for the period
-
according to the requirements by tax laws and accounting laws and regulations
Custodian fees earned from entrusted operation -
Other non-operating income or expenses other than above 207,606.81
Other profit or loss that meets the definition of non-recurring profit or loss -
Tax effects -21,936,823.86
Effects of minority interest (after tax) -66,809,120.74
Total 61,312,079.02
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2022
(Unless otherwise specified, the monetary unit shall be RMB.)
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd. in
accordance with Information Disclosure and Presentation Rules for Companies Making Public
Offering No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share
(revised in 2010) issued by China Securities Regulatory Commission.
Weighted EPS
Item average return
Basic EPS Diluted EPS
on net assets (%)
Net profit attributable to ordinary shareholders 4.8759 1.0309 1.0309
Net profit attributable to ordinary shareholders after
4.7251 0.9991 0.9990
deducting non-recurring profit or loss
