CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
CONTENTS PAGE(S)
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 - 161
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2023
Consolidated Balance Sheet
Unit: RMB
Item Notes 30/6/2023 31/12/2022 (restated)
Current Assets:
Cash and bank balances (VIII) 1 14,440,689,892.60 13,615,928,739.40
Held-for-trading financial assets (VIII) 2 4,645,336,576.09 2,998,781,599.63
Notes receivable (VIII) 3 186,028,246.15 36,395,000.00
Accounts receivable (VIII) 4 2,083,996,446.24 1,276,149,689.44
Receivables financing (VIII) 5 - 163,766,913.10
Prepayments (VIII) 6 84,241,251.04 63,627,425.42
Other receivables (VIII) 7 2,006,436,507.38 948,842,094.30
Inventories (VIII) 8 244,341,161.12 225,122,821.48
Assets held for sale (VIII) 9 4,034,332,787.01 -
Non-current assets due within one year (VIII) 10 59,033,499.39 902,225,293.93
Other current assets (VIII) 11 148,795,701.64 185,903,140.53
Total Current Assets 27,933,232,068.66 20,416,742,717.23
Non-current Assets:
Long-term receivables (VIII) 12 6,859,846,013.74 5,661,327,499.07
Long-term equity investments (VIII)13 94,976,270,168.12 92,364,293,919.05
Investments in other equity instruments (VIII) 14 154,256,180.28 171,945,275.02
Other non-current financial assets (VIII) 15 971,716,168.73 1,745,740,896.41
Investment properties (VIII) 16 5,049,637,728.99 5,123,690,119.56
Fixed assets (VIII) 17 29,369,002,248.34 32,033,326,083.50
Construction in progress (VIII) 18 2,476,908,227.17 2,413,844,407.64
Right-of-use assets (VIII) 19 9,483,918,238.46 9,342,642,222.33
Intangible assets (VIII) 20 18,446,203,829.88 19,277,065,115.61
Development expenditure (VIII) 21 36,845,103.25 17,412,196.16
Goodwill (VIII) 22 6,567,494,230.16 6,411,426,891.09
Long-term prepaid expenses (VIII) 23 986,494,548.39 986,356,904.90
Deferred tax assets (VIII) 24 412,227,220.14 434,498,820.95
Other non-current assets (VIII) 25 1,204,837,435.02 1,186,789,378.79
Total Non-current Assets 176,995,657,340.67 177,170,359,730.08
TOTAL ASSETS 204,928,889,409.33 197,587,102,447.31
-1-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2023
Consolidated Balance Sheet - continued
Unit: RMB
Item Note 30/6/2023 31/12/2022 (restated)
Current Liabilities:
Short-term borrowings (VIII) 26 4,980,452,166.69 7,164,338,366.18
Notes payable (VIII) 27 39,276,000.00 -
Accounts payable (VIII) 28 531,218,999.62 811,149,397.66
Receipts in advance (VIII) 29 42,258,593.81 9,886,531.59
Contract liabilities (VIII) 30 191,779,113.06 141,899,551.03
Employee benefits payable (VIII) 31 755,339,613.36 936,834,718.13
Taxes payable (VIII) 32 1,023,366,962.42 917,933,169.09
Other payables (VIII) 33 3,165,399,094.34 1,755,885,258.26
Held-for-sale liabilities (VIII) 34 681,983,479.70 -
Non-current liabilities due within one year (VIII) 35 13,422,474,832.50 11,641,223,688.95
Other current liabilities (VIII) 36 4,500,231,313.76 3,161,147,525.96
Total Current Liabilities 29,333,780,169.26 26,540,298,206.85
Non-current Liabilities:
Long-term borrowings (VIII) 37 16,083,606,258.60 12,390,099,177.85
Bonds payable (VIII) 38 17,484,215,109.65 19,088,293,099.02
Including: Preferred shares - -
Perpetual bonds - -
Lease liabilities (VIII) 39 911,098,409.66 948,350,914.04
Long-term payables (VIII) 40 3,927,125,038.19 3,551,315,590.31
Long-term employee benefits payable (VIII) 41 624,346,765.68 639,095,931.43
Provisions (VIII) 42 37,446,005.96 35,365,156.43
Deferred income (VIII) 43 1,018,957,256.16 1,031,273,189.74
Deferred tax liabilities (VIII) 24 4,578,062,228.23 4,855,019,835.33
Other non-current liabilities (VIII) 44 178,591,600.54 186,383,117.00
Total Non-current Liabilities 44,843,448,672.67 42,725,196,011.15
TOTAL LIABILITIES 74,177,228,841.93 69,265,494,218.00
SHAREHOLDERS' EQUITY:
Share capital (VIII) 45 2,499,074,661.00 2,499,074,661.00
Capital reserve (VIII) 46 35,070,375,533.28 34,751,640,835.25
Other comprehensive income (VIII) 47 -350,736,236.07 -689,553,619.86
Special reserve (VIII) 48 43,884,349.65 26,358,259.97
Surplus reserve (VIII) 49 1,001,917,449.15 1,001,917,449.15
Unappropriated profit (VIII) 50 17,479,739,463.12 16,701,988,301.14
Total equity attributable to shareholders
55,744,255,220.13 54,291,425,886.65
of the Company
Minority interests 75,007,405,347.27 74,030,182,342.66
TOTAL SHAREHOLDERS' EQUITY 130,751,660,567.40 128,321,608,229.31
TOTAL LIABILITIES AND
204,928,889,409.33 197,587,102,447.31
SHAREHOLDERS' EQUITY
The accompanying notes form part of the financial statements.
The financial statements were signed by the following:
Xu Song Tu Xiaoping Hu Shaode
____________________ ____________________ ____________________
Legal Representative Chief Financial Officer Head of Accounting Department
-2-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2023
Balance Sheet of the Company
Unit: RMB
Item Note 30/6/2023 31/12/2022
Current Assets:
Cash and bank balances 5,162,021,339.41 3,333,936,587.44
Held-for-trading financial assets 2,509,140,547.94 1,502,601,369.86
Other receivables (XVIII) 1 1,418,521,632.58 2,749,637,755.23
Other current assets 8,725,411.89 7,774,206.30
Total Current Assets 9,098,408,931.82 7,593,949,918.83
Non-current Assets:
Long-term receivables 9,555,457.97 9,240,200.34
Long-term equity investments (XVIII) 2 54,449,149,531.65 53,433,613,471.49
Investments in other equity instruments 144,700,378.28 144,700,378.28
Other non-current financial assets - 950,321,309.06
Fixed assets 28,306,351.20 28,826,135.19
Construction in progress 100,604.53 15,435,512.32
Intangible assets 56,493,136.33 50,303,126.12
Development expenditure 27,476,298.75 6,219,670.14
Long-term prepaid expenses 698,960.39 873,700.49
Deferred tax assets 928,465.21 928,465.21
Total Non-current Assets 54,717,409,184.31 54,640,461,968.64
TOTAL ASSETS 63,815,818,116.13 62,234,411,887.47
-3-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2023
Balance Sheet of the Company - continued
Unit: RMB
Item Note 30/6/2023 31/12/2022
Current liabilities:
Receipts in advance 7,075,471.70 -
Employee benefits payable 30,353,653.34 38,763,907.88
Taxes payable 744,010.41 1,251,923.17
Other payables 387,931,046.81 373,569,651.65
Non-current liabilities due within one year 4,220,661,703.69 2,146,233,151.54
Other current liabilities 4,017,249,315.07 3,017,713,424.64
Total Current Liabilities 8,664,015,201.02 5,577,532,058.88
Non-current Liabilities:
Long-term borrowings 5,984,000,000.00 4,988,000,000.00
Bonds payable 6,000,000,000.00 8,000,000,000.00
Deferred tax liabilities 43,257,050.57 41,622,256.05
Total Non-current Liabilities 12,027,257,050.57 13,029,622,256.05
TOTAL LIABILITIES 20,691,272,251.59 18,607,154,314.93
SHAREHOLDERS' EQUITY:
Share capital 2,499,074,661.00 2,499,074,661.00
Capital reserve 37,728,804,777.23 37,749,723,642.07
Other comprehensive income 110,122,503.24 99,525,686.03
Surplus reserve 1,001,917,449.15 1,001,917,449.15
Unappropriated profit 1,784,626,473.92 2,277,016,134.29
TOTAL SHAREHOLDERS' EQUITY 43,124,545,864.54 43,627,257,572.54
TOTAL LIABILITIES AND SHAREHOLDERS'
63,815,818,116.13 62,234,411,887.47
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 2023
Consolidated Income Statement
Unit: RMB
Prior Period
Item Note Current Period
(restated)
I. Operating income (VIII) 51 7,795,261,570.99 8,150,462,367.19
Less: Operating costs (VIII) 51 4,519,943,753.79 4,637,368,881.65
Taxes and levies (VIII) 52 141,777,332.44 135,514,540.07
Administrative expenses (VIII) 53 790,916,154.65 812,502,660.55
Research and development expenses 121,041,310.72 114,833,178.50
Financial expenses (VIII) 54 960,449,741.90 1,351,945,047.67
Including: Interest expenses 1,112,890,609.92 1,140,997,429.67
Interest income 248,901,354.18 212,820,789.37
Add: Other income (VIII) 55 62,556,943.27 87,480,824.65
Investment income (VIII) 56 3,187,492,718.40 4,355,273,765.49
Including: Income from investments in
(VIII) 56 3,095,294,518.20 4,211,173,480.05
associates and joint ventures
Gains (losses) from changes in fair value (VIII) 57 143,037,303.68 -38,026,112.58
Gains (losses) on impairment of credit (VIII) 58 -7,295,621.30 2,882,412.61
Gains on impairment of assets 65,324.84 -
Gains (losses) on disposal of assets (VIII) 59 352,045.75 -207,276.37
II. Operating profit 4,647,341,992.13 5,505,701,672.55
Add: Non-operating income (VIII) 60 36,583,484.46 20,192,926.39
Less: Non-operating expenses (VIII) 61 10,079,003.33 20,267,458.29
III. Gross profit 4,673,846,473.26 5,505,627,140.65
Less: Income tax expenses (VIII) 62 613,219,852.56 619,132,978.15
IV. Net profit 4,060,626,620.70 4,886,494,162.50
(I) Categorization by continuity of operation
1. Net profit of continued operation 4,060,626,620.70 4,886,494,162.50
2. Net profit of discontinued operation - -
(II) Categorization by attribution of ownership
1. Net profit attributable to shareholders of the Company 1,902,334,759.43 1,988,560,957.83
2. Profit or loss attributable to minority interests 2,158,291,861.27 2,897,933,204.67
V. Other comprehensive income, net of tax (VIII) 64 1,427,173,705.07 444,444,067.16
Other comprehensive income attributable to
338,817,383.79 -17,684,131.58
shareholders of the Company, net of tax
(I) Other comprehensive income that will not be reclassified
29,979,361.65 -76,728,084.39
to profit or loss
1. Changes as a result of remeasurement of the defined
- -
benefit plan
2. Other comprehensive income that will not be reclassified
29,979,361.65 -78,616,754.21
to profit or loss under the equity method
3. Fair value changes of investments in other equity
- 1,888,669.82
instruments
(II) Other comprehensive income that will be reclassified
308,838,022.14 59,043,952.81
subsequently to profit or loss
1. Other comprehensive income that will be reclassified
18,341,346.24 -117,324,901.44
to profit or loss under the equity method
2. Translation differences of financial statements denominated
290,496,675.90 176,368,854.25
in foreign currencies
Other comprehensive income attributable to minority interests, net of tax 1,088,356,321.28 462,128,198.74
VI. Total comprehensive income 5,487,800,325.77 5,330,938,229.66
Total comprehensive income attributable to shareholders of the Company 2,241,152,143.22 1,970,876,826.25
Total comprehensive income attributable to minority interests 3,246,648,182.55 3,360,061,403.41
VII. Earnings per share
(I) Basic earnings per share 0.76 1.03
(II) Diluted earnings per share 0.76 1.03
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 2023
Income Statement of the Company
Unit: RMB
Item Note Current Period Prior Period
I. Operating income (XVIII) 3 8,968,995.20 -
Less: Operating costs (XVIII) 3 1,843,205.76 1,132,979.70
Taxes and levies 103,691.21 152,914.98
Administrative expenses 66,853,404.89 74,398,609.92
Research and development expenses 7,589,098.79 -
Financial expenses 206,197,148.38 176,214,861.88
Including: Interest expenses 251,482,309.35 220,415,407.89
Interest income 48,604,367.40 51,040,811.33
Add: Other income 206,131.06 366,921.86
Investment income (XVIII) 4 954,616,989.55 762,872,589.73
Including: Income from investments in associates
(XVIII) 4 513,357,921.90 136,885,266.28
and joint ventures
Gains (losses) from changes in fair value -48,735,325.75 8,456,279.18
II. Operating profit 632,470,241.03 519,796,424.29
Add: Non-operating income - 34,957.54
Less: Non-operating expenses - 18.84
III. Gross profit 632,470,241.03 519,831,362.99
Less: Income tax expenses 276,303.95 -6,336,709.00
IV. Net profit 632,193,937.08 526,168,071.99
V. Other comprehensive income, net of tax 10,596,817.21 498,042.27
(I) Other comprehensive income that will not be
- 1,914,691.56
reclassified subsequently to profit or loss
1. Changes as a result of remeasurement of the defined
- -
benefit plan
2. Other comprehensive income that will not be
- 27,649.59
reclassified to profit or loss under the equity method
3. Fair value changes of investments in other equity
- 1,887,041.97
instruments
(II) Other comprehensive income that will be reclassified
10,596,817.21 -1,416,649.29
to profit or loss
1. Other comprehensive income that will be reclassified
10,596,817.21 -1,416,649.29
to profit or loss under the equity method
2. Translation differences of financial statements
- -
denominated in foreign currencies
VI. Total comprehensive income 642,790,754.29 526,666,114.26
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 2023
Consolidated Cash Flow Statement
Unit: RMB
Item Note Current Period Prior Period
I. Cash Flows from Operating Activities
Cash receipts from the sale of goods and the rendering of
7,087,683,808.17 7,946,044,540.63
services
Receipts of tax refunds 8,515,483.02 185,224,132.63
Other cash receipts relating to operating activities (VIII) 65 (1) 373,799,421.93 448,659,531.56
Sub-total of cash inflows from operating activities 7,469,998,713.12 8,579,928,204.82
Cash payments for goods purchased and services received 2,200,251,570.38 2,240,288,101.95
Cash payments to and on behalf of employees 1,955,256,571.31 1,879,756,634.11
Payments of various types of taxes 615,016,288.84 827,509,481.12
Other cash payments relating to operating activities (VIII) 65 (2) 388,628,976.63 411,122,810.55
Sub-total of cash outflows from operating activities 5,159,153,407.16 5,358,677,027.73
Net Cash Flow from Operating Activities (VIII) 66 (1) 2,310,845,305.96 3,221,251,177.09
II. Cash Flows from Investing Activities
Cash receipts from disposals and recovery of investments 13,267,000,000.00 23,921,644,162.50
Cash receipts from investment income 849,743,795.10 733,820,028.32
Net cash receipts from disposals of fixed assets, intangible
29,004,019.28 1,250,786.03
assets and other long-term assets
Other cash receipts relating to investing activities (VIII) 65 (3) 103,159,042.89 94,566,178.69
Sub-total of cash inflows from investing activities 14,248,906,857.27 24,751,281,155.54
Cash payments to acquire or construct fixed assets,
554,196,022.65 950,600,127.64
intangible assets and other long-term assets
Cash payments to acquire investments 14,912,654,969.50 24,696,618,396.78
Other cash payments relating to investing activities (VIII) 65 (4) 7,346,305.63 967,712,734.42
Sub-total of cash outflows from investing activities 15,474,197,297.78 26,614,931,258.84
Net Cash Flow from Investing Activities -1,225,290,440.51 -1,863,650,103.30
III. Cash Flows from Financing Activities
Cash receipts from capital contributions 107,188,200.00 -
Including: Cash receipts from capital contributions from
107,188,200.00 -
minority shareholders of subsidiaries
Cash receipts from borrowings 8,326,794,657.48 14,789,220,290.65
Cash receipts from issue of bonds 4,000,000,000.00 7,000,000,000.00
Other cash receipts relating to financing activities (VIII) 65 (5) 322,361,300.44 52,897,609.21
Sub-total of cash inflows from financing activities 12,756,344,157.92 21,842,117,899.86
Cash repayments of borrowings 10,190,021,538.82 19,426,456,859.41
Cash payments for distribution of dividends
2,301,689,391.64 2,063,908,899.16
or profits or settlement of interest expenses
Including: Payments for distribution of dividends or
284,157,004.21 298,311,895.58
profits to minority shareholders of subsidiaries
Other cash payments relating to financing activities (VIII) 65 (6) 474,856,036.85 224,977,119.04
Sub-total of cash outflows from financing activities 12,966,566,967.31 21,715,342,877.61
Net Cash Flow from Financing Activities -210,222,809.39 126,775,022.25
IV. Effect of Foreign Exchange Rate Changes on Cash and
113,688,926.60 -88,210,579.74
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 989,020,982.66 1,396,165,516.30
Add: Opening balance of cash and cash equivalents (VIII) 66 (2) 13,567,309,471.62 12,727,355,238.36
VI. Closing Balance of Cash and Cash Equivalents (VIII) 66 (2) 14,556,330,454.28 14,123,520,754.66
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 2023
Cash Flow Statement of the Company
Unit: RMB
Item Note Current Period Prior Period
I. Cash Flows from Operating Activities
Receipts of tax refunds 1,576,989.49 1,181,089.86
Other cash receipts relating to operating activities 43,868,259.92 33,183,150.38
Sub-total of cash inflows from operating activities 45,445,249.41 34,364,240.24
Cash payments for goods purchased and services received 40,000.00 57,280.00
Cash payments to and on behalf of employees 63,518,456.65 50,444,029.40
Payments of various types of taxes 257,952.03 161,506,258.88
Other cash payments relating to operating activities 30,081,745.57 35,013,421.74
Sub-total of cash outflows from operating activities 93,898,154.25 247,020,990.02
Net Cash Flow from Operating Activities -48,452,904.84 -212,656,749.78
II. Cash Flows from Investing Activities
Cash receipts from disposals and recovery of investments 5,500,000,000.00 20,036,632,041.97
Cash receipts from investment income 809,514,985.64 630,452,904.29
Other cash receipts relating to investing activities 1,814,592,762.53 468.00
Sub-total of cash inflows from investing activities 8,124,107,748.17 20,667,085,414.26
Cash payments to acquire or construct fixed assets,
14,018,573.00 1,566,408.28
intangible assets and other long-term assets
Cash payments to acquire investments 6,503,750,000.00 21,026,322,904.70
Other cash payments relating to investing activities 440,005,946.71 180,004,179.30
Sub-total of cash outflows from investing activities 6,957,774,519.71 21,207,893,492.28
Net Cash Flow from Investing Activities 1,166,333,228.46 -540,808,078.02
III. Cash Flows from Financing Activities
Cash receipts from borrowings 1,120,000,000.00 3,126,668,674.85
Cash receipts from issue of bonds 4,000,000,000.00 7,000,000,000.00
Other cash receipts relating to financing activities 160,820.44 2,897,609.21
Sub-total of cash inflows from financing activities 5,120,160,820.44 10,129,566,284.06
Cash repayments of borrowings 3,104,000,000.00 6,217,408,504.85
Cash payments for distribution of dividends or
1,304,284,778.80 1,038,085,659.53
profits or settlement of interest expenses
Other cash payments relating to financing activities 2,061,702.22 3,282,168.31
Sub-total of cash outflows from financing activities 4,410,346,481.02 7,258,776,332.69
Net Cash Flow from Financing Activities 709,814,339.42 2,870,789,951.37
IV. Effect of Foreign Exchange Rate Changes on Cash and
372,588.93 356,593.08
Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 1,828,067,251.97 2,117,681,716.65
Add: Opening balance of cash and cash equivalents 3,333,936,587.44 2,913,761,567.31
VI. Closing Balance of Cash and Cash Equivalents 5,162,003,839.41 5,031,443,283.96
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 2023
Consolidated Statement of Changes in Shareholders' Equity
Unit: 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 2,499,074,661.00 34,751,640,835.25 -691,536,248.44 26,358,259.97 1,001,917,449.15 16,679,688,347.09 73,994,641,893.21 128,261,785,197.23
Add: Changes in accounting policies - - 1,982,628.58 - - 22,299,954.05 35,540,449.45 59,823,032.08
Corrections of prior period errors - - - - - - - -
Business combination involving
- - - - - - - -
enterprises under common control
Others - - - - - - - -
II. Opening balance of the period (restated) 2,499,074,661.00 34,751,640,835.25 -689,553,619.86 26,358,259.97 1,001,917,449.15 16,701,988,301.14 74,030,182,342.66 128,321,608,229.31
III. Changes for the period - 318,734,698.03 338,817,383.79 17,526,089.68 - 777,751,161.98 977,223,004.61 2,430,052,338.09
(I) Total comprehensive income - - 338,817,383.79 - - 1,902,334,759.43 3,246,648,182.55 5,487,800,325.77
(II) Owners' contributions and
- 318,734,698.03 - - - - -698,157,619.42 -379,422,921.39
reduction in capital
1. Ordinary shares contributed by
- - - - - - - -
shareholders
2. Capital contribution from holders of
- - - - - - - -
other equity instruments
3. Share-based payment recognized in
- 859,840.86 - - - - 493,006.74 1,352,847.60
shareholders' equity
4. Business combination involving
- - - - - - - -
enterprises under common control
5. Others - 317,874,857.17 - - - - -698,650,626.16 -380,775,768.99
(III) Profit distribution - - - - - -1,124,583,597.45 -1,593,417,985.35 -2,718,001,582.80
1. Transfer to surplus reserve - - - - - - - -
2. Transfer to general risk reserve - - - - - - - -
3. Distributions to shareholders - - - - - -1,124,583,597.45 -1,493,778,223.41 -2,618,361,820.86
4. Others - - - - - - -99,639,761.94 -99,639,761.94
(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 - - - 17,526,089.68 - - 22,150,426.83 39,676,516.51
1. Appropriation in the period - - - 31,106,449.65 - - 36,567,997.25 67,674,446.90
2. Utilization in the period - - - -13,580,359.97 - - -14,417,570.42 -27,997,930.39
(VI) Others - - - - - - - -
IV. Closing balance of the period 2,499,074,661.00 35,070,375,533.28 -350,736,236.07 43,884,349.65 1,001,917,449.15 17,479,739,463.12 75,007,405,347.27 130,751,660,567.40
-9-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
Consolidated Statement of Changes in Shareholders' Equity - continued
Unit: RMB
Prior Period (restated)
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 - - - - - 21,052,360.17 33,445,604.29 54,497,964.46
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 14,226,931,466.66 71,267,683,833.64 111,089,924,855.94
III. Changes for the period - 254,031,538.43 -25,197,801.49 23,131,406.80 - 1,169,457,624.42 754,027,683.10 2,175,450,451.26
(I) Total comprehensive income - - -17,684,131.58 - - 1,988,560,957.83 3,360,061,403.41 5,330,938,229.66
(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 risk 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. Appropriation in the period - - - 32,027,158.31 - - 37,984,383.50 70,011,541.81
2. Utilization 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 -915,323,119.67 32,315,835.92 961,182,562.00 15,396,389,091.08 72,021,711,516.74 113,265,375,307.20
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 2023
Statement of Changes in Shareholders' Equity of the Company
Unit: 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 2,499,074,661.00 37,749,723,642.07 99,525,686.03 - 1,001,917,449.15 2,277,016,134.29 43,627,257,572.54
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the period 2,499,074,661.00 37,749,723,642.07 99,525,686.03 - 1,001,917,449.15 2,277,016,134.29 43,627,257,572.54
III. Changes for the period - -20,918,864.84 10,596,817.21 - - -492,389,660.37 -502,711,708.00
(I) Total comprehensive income - - 10,596,817.21 - - 632,193,937.08 642,790,754.29
(II) Owners' contributions and reduction
- -20,918,864.84 - - - - -20,918,864.84
in capital
1. Ordinary shares contributed by
- - - - - - -
shareholders
2. Share-based payment recognized in
- 1,096,369.68 - - - - 1,096,369.68
shareholders' equity
3. Others - -22,015,234.52 - - - - -22,015,234.52
(III) Profit distribution - - - - - -1,124,583,597.45 -1,124,583,597.45
1. Transfer to surplus reserve - - - - - - -
2. Transfer to general risk reserve - - - - - - -
3. Distributions to shareholders - - - - - -1,124,583,597.45 -1,124,583,597.45
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. Appropriation in the period - - - - - - -
2. Utilization in the period - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the period 2,499,074,661.00 37,728,804,777.23 110,122,503.24 - 1,001,917,449.15 1,784,626,473.92 43,124,545,864.54
- 11 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
Statement of Changes in Shareholders' Equity of the Company - continued
Unit: 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 27,594,079,596.13 105,412,294.52 - 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 risk 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. Appropriation in the period - - - - - - -
2. Utilization 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
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 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Group Co., Ltd. (hereinafter referred to as "the Company") is 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 referred to as "the Group") are principally engaged in the rendering of
port services, bonded logistics services and other businesses such as property development and
investment.
The consolidated and Company's financial statements have been approved by the Board of Directors
on 29 August 2023.
See Note (X) "Equity in Other Entities" for details of the scope of consolidated financial statements
for the current period. See Note (IX) "Changes in Scope of Consolidation" for details of changes in
the scope of consolidated financial statements for 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 Compilation Rules for Information Disclosure by Companies Offering Securities
to the Public No. 15 - General Provisions on Financial Reports (2014 Revision).
Going concern
As at 30 June 2023, the Group has total current liabilities in excess of total current assets of RMB
1,400,548,100.60. As at 30 June 2023, the Group has available and unused lines of credit and bonds
amounting to RMB 67,024,496,484.81, which is greater than the balance of the net current liabilities.
The Group can obtain financial support from the available lines of credit and bonds 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 consolidated and Company's financial position as of 30 June 2023, and
the consolidated and Company's results of operations, shareholders' equity and cash flows for the
period from 1 January to 30 June 2023.
- 13 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting year
The Group has adopted the calendar year as its accounting year, i.e. 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 services, bonded logistics services and other services 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 overseas 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. When the Group was restructured into a stock company,
fixed assets and intangible assets initially contributed by state-owned shareholders were recognized
based on valuation amounts confirmed by the state-owned assets administration department. Where
assets are impaired, provisions for asset impairment are made in accordance with 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 amount 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
disclosure in the financial statements are determined according to the above basis.
In the measurement of non-financial assets at fair value, market participants' ability to best utilize
such assets to generate most economic benefits, or the ability to sell such assets to other market
participants who are able to best utilize the assets to generate economic benefits is taken into
account.
- 14 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 of which the transaction price is the fair value at initial recognition, and of
which the subsequent fair value measurement uses a valuation technique involving unobservable
inputs, the valuation technique should be calibrated so that the initial recognition result determined
using 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
measurements 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 for 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 2023
(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. 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 for the period 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 recognizes 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 recognized and the amount originally recognized 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
Standards for Business Enterprise No. 22 - Financial Instruments: Recognition and Measurement
(the "ASBE No. 22") and Accounting Standards 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 2023
(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 is effected, the acquirer recognizes and measures
the combination using those provisional values. Any adjustments to those provisional values within
12 months after the acquisition date are treated as if they had been recognized and measured at 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 group
or portfolio of assets groups, i.e., goodwill is reasonably allocated to the related assets group or
portfolio of assets groups expected to benefit from the synergies of the combination. An impairment
loss is recognized if the recoverable amount of the assets group or portfolio of assets groups (to
which the goodwill is allocated) 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 portfolio
of assets groups, and then reduce the carrying amount of other assets pro-rata on the basis of the
carrying amount of each asset (other than goodwill) in the assets group or portfolio of assets groups.
Recoverable amount is the higher of the fair value of an asset net of cost of disposal and the present
value of the asset's estimated future cash flows.
The impairment loss of goodwill is recognized in profit or loss for the period when it is incurred
and will not be reversed 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 in the above elements of the definition of control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary 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 cash flow statement, as appropriate.
- 17 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 cash flow statement,
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 combined party
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 beginning of the
earliest reporting period or the date when they first came under the common control of the ultimate
controlling party are included in the consolidated income statement and consolidated cash flow
statement, 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.
The effect of intra-group transactions on the consolidated financial statements is eliminated on
consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet under the line item
of shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable
to minority interests is presented as "profit or loss attributable to minority interests" in the
consolidated income statement under the line item of net profit. The portion of comprehensive
income of subsidiaries for the period attributable to minority interests is presented as "total
comprehensive income attributable to minority shareholders" in the consolidated income statement
under the line item of total comprehensive income.
When the minority shareholders' share of loss of a subsidiary exceeds the minority shareholders'
share of the opening balance of owners' equity of the subsidiary, the excess amount is still allocated
against minority interests.
Acquisition of minority interests or partial disposal of equity investments in a subsidiary that do not
result in the loss of control over the subsidiary is 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 is 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 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Consolidated financial statements - continued
Where equity interests in an acquiree are acquired in stages through multiple transactions,
ultimately constituting a business combination not involving enterprises under common control, the
accounting treatment shall be made taking into account whether these transactions are a "package
deal". If yes, these transactions are accounted for as a single transaction where control is obtained.
If no, they are accounted for as transactions where control is obtained at the acquisition date.
Specifically, the equity interests held in the acquiree prior to the acquisition date are remeasured at
the fair value at the acquisition date, and the difference between the fair value and carrying amount
is recognized in profit or loss for the period; where the equity interests held in the acquiree prior to
the acquisition date involve changes in other comprehensive income and other owners' equity under
the equity method, the changes are transferred to income for the period to which the acquisition
date is attributable.
Where the control over a subsidiary is lost due to partial disposal of equity investments or other
reasons, any retained interest is remeasured 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 for the period in which control is lost, and the goodwill is offset accordingly.
Other comprehensive income associated with equity investments in the former subsidiary is
reclassified to investment income for the period in which control is lost.
Where the disposal of equity investments in a subsidiary until the control is lost is achieved in stages
through multiple transactions, the multiple transactions are usually considered as a package deal if
the terms, conditions and economic effects of the transactions satisfy one or several of the following
circumstances: (i) they are entered into at the same time or in contemplation of one another; (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 control is lost are a package deal, these transactions are accounted for as a single
transaction of disposal of a subsidiary resulting in loss of control. Before losing control, the
difference between each disposal consideration and the corresponding share of net assets of the
subsidiary continuously calculated from acquisition date is recognized as other comprehensive
income. When control is lost, the cumulated other comprehensive income is transferred to profit or
loss for the period in which control is lost. If the transactions of disposal of equity investments in a
subsidiary until control is lost are not a package deal, these transactions are accounted for as separate
transactions.
7. Joint arrangements
Joint arrangement refers to the arrangement jointly controlled by two or more participating parties.
The Group's joint arrangements have the following characteristics: (1) all the participating parties
are bound by the arrangement; (2) the arrangement is jointly controlled by two or more participating
parties. Any participating party cannot control the arrangement separately and any participating
party having joint control of the arrangement can stop other participating parties or the group of
participating parties from the separate control over the arrangement.
- 19 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Joint arrangements - continued
Joint control is the contractually agreed sharing of control of an arrangement, and exists only when
the decisions on the relevant activities require the unanimous consent of the parties sharing control.
Joint arrangements comprise of joint operations and joint ventures. A joint operation is a joint
arrangement whereby the parties sharing control have rights to the assets and assume liabilities
relating to the arrangement. A joint venture is a joint arrangement whereby the parties sharing
control have rights to only 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 gross carrying amounts (other than the amortized
cost) of monetary items classified as at fair value through other comprehensive income are
recognized as other comprehensive income.
When the consolidated financial statements include foreign operation(s), if there is a foreign
currency monetary item constituting a net investment in a foreign operation, exchange differences
arising from changes in exchange rates are recognized as "translation differences 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.
- 20 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
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 and the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rates 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: all assets
and liabilities in the balance sheet are translated at the spot exchange rates 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 arise; 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 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 cash flows of an overseas subsidiary
are translated at average exchange rates 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 prior year comparative figures are presented in the amounts translated based on the financial
statements for the prior year.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a
foreign operation due to partial disposal of equity investments 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 for the period in which the disposal occurs.
- 21 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
In case of partial disposal of equity investments or any other reason which results in lower
percentage of equity interests in a foreign operation but does not result in losing control over the
foreign operation, the translation differences of financial statements denominated in foreign
currencies 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 translation differences of financial
statements denominated in foreign currencies of foreign operations are reclassified to profit or loss.
10. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to 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; upon initial recognition of contract assets, accounts receivable
and notes receivable that do not contain significant financing component or without considering the
financing component included in the contract with a term not exceeding one year under the
Accounting Standards for Business Enterprises No. 14 - Revenue ("Revenue Standards"), the Group
adopts the transaction price as defined in the Revenue Standards for initial measurement.
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating the interest income or interest expenses over the rele vant
accounting periods.
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 the financial
asset or to the amortized cost of the 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 (such as repayment in advance, extension, call option or other similar options)
(without considering the expected credit losses).
- 22 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
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, the Group classifies the financial asset as financial assets at amortized cost.
Such types of financial assets mainly include cash and bank balances, notes receivable, accounts
receivable, other receivables, debt investments and long-term receivables.
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 achieved by both collecting contractual cash flows
and selling the financial asset, the Group classifies the financial asset as financial assets at fair value
through other comprehensive income ("FVTOCI"). Accounts receivable and notes receivable
classified as FVTOCI at acquisition are presented as receivables financing, while the remaining
items due within one year (inclusive) upon acquisition are presented under other current assets.
Other financial assets of such type are presented as other debt investments if they are due after one
year since the acquisition, or presented under non-current assets due within one year if they are due
within one year (inclusive) since the balance sheet date.
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 investments in other equity instruments.
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.
- 23 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
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.
Financial assets not satisfying the criteria of classification as financial assets at amortized cost
and financial assets at FVTOCI are classified as financial assets at FVTPL.
Upon initial recognition, the Group may irrevocably designate the financial assets as at
FVTPL if doing so eliminates or significantly reduces accounting mismatch.
Financial assets at FVTPL assets other than derivative financial assets are presented as "held-for-
trading financial assets". Financial assets with a maturity over one year since the balance sheet date
(or without a fixed maturity) and expected to be held for over one year are presented under 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 the
effective interest method. The Group calculates and recognizes interest income by applying the
effective interest rate to the gross carrying amount of the financial assets, except for the following
circumstances:
For purchased or originated credit-impaired financial assets, the Group calculates and
recognizes the interest income based on amortized cost of the financial assets and the credit-
adjusted effective interest rate.
10.1.2 Financial assets at FVTOCI
Changes in fair value of financial assets at FVTOCI are included in other comprehensive income,
except that related impairment losses or gains, interest income calculated using the effective interest
method and exchange gains or losses are recognized in profit or loss for the current period. Amounts
charged to profit or loss for each period equal to the amount charged to profit or loss as if it has
always been measured at amortized cost. Upon derecognition of the financial asset, the cumulative
gains or losses previously recognized in other comprehensive income shall be transferred out from
other comprehensive income and recognized in profit or loss.
- 24 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
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 are transferred out and included in retained
earnings upon derecognition of the financial assets. 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's right to collect dividends has been established; (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. Gains or losses 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
For financial assets at amortized cost, financial assets classified as at FVTOCI, lease receivables,
contract assets, loan commitments that are not financial liabilities at FVTPL, financial guarantee
contracts that are neither financial liabilities at FVTPL nor financial liabilities arising from transfer
of financial assets that does not satisfy the derecognition criteria or continuing involvement in the
transferred financial assets, the Group accounts for the impairment and recognizes the provision for
losses on the basis of expected credit loss ("ECL").
For all contract assets, accounts receivable and notes receivable arising from transactions regulated
by Revenue Standards, and lease receivables arising from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases, the Group recognizes the provision for losses
at an amount equivalent to the lifetime ECL.
For other financial instruments, 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 risk has increased significantly since initial recognition of the
financial instruments, the Group recognizes the provision for losses at an amount equivalent to
lifetime ECL; if the credit risk has not increased significantly since initial recognition of the
financial instruments, the Group recognizes the provision for losses at an amount equivalent to 12-
month ECL. The increase or reversal of credit loss provision for financial assets other than those
classified as at FVTOCI is recognized as impairment loss or gain and included in profit or loss for
the period. For financial assets classified as at FVTOCI, the credit loss provision is recognized in
other comprehensive income and the impairment loss or gain is included in profit or loss for the
period without reducing the carrying amount of the financial assets in the balance sheet.
- 25 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Where the Group has measured the provision for losses at an amount equivalent to lifetime ECL of
a financial instrument in prior accounting period, but the financial instrument no longer satisfies the
criteria of significant increase in credit risk since initial recognition at the current balance sheet date,
the Group recognizes the provision for losses of the financial instrument at an amount equivalent
to 12-month ECL at the current balance sheet date, with any resulting reversal of provision for
losses recognized as impairment gains in profit or loss for the period.
10.2.1 Significant increase in credit risk
The Group uses reasonable and supportable forward-looking information to assess whether the
credit risk has increased significantly since initial recognition by comparing the risk of a default
occurring on the financial instrument at the balance sheet date with the risk of a default occurring
on the financial instrument 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 as the date of initial recognition in applying the provisions on impairment of financial
instruments.
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) Significant changes in the rates or other terms of an existing financial instrument 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 rate of return).
(3) Significant changes in external market indicators of credit risk for the same 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) An actual or expected significant change in the financial instrument's external credit rating.
(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 debtor.
(9) Significant adverse change in the regulatory, economic, or technological environment of the
debtor.
- 26 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 in credit risk - continued
(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 motives to repay within the time limit specified in contract or affect the
probability of default.
(11) Significant changes in the debtor's economic motives to repay within the time limit specified
in contract.
(12) Expected changes to loan contract, including the exemption or revision of contractual
obligations, the granting of interest-free periods, the jump in interest rates, the requirement
for additional collateral or guarantees, or other changes in the contractual framework for
financial instruments that may result from the breach of contract.
(13) Significant changes in the expected performance and behaviour of the debtor.
(14) Changes in the Group's credit management approach in relation to the financial instruments.
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 an event or several events that are expected to have adverse impact on the future cash flows
of the financial assets have occurred, the financial assets become credit-impaired. The evidences of
credit impairment of financial assets include the following observable information:
(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 is 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 origination of a financial asset with a large scale of discount, which reflects
facts of credit loss incurred.
- 27 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
10.2.2 Credit-impaired financial assets - continued
Based on the Group's internal credit risk management, the Group considers an event of default
occurs when information developed internally or obtained from external sources indicates that the
debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any
collaterals held by the Group).
10.2.3 Determination of expected credit loss
Lease receivables are assessed for ECL individually by the Group. In addition, the Group uses
impairment matrix to calculate ECL for notes receivable, accounts receivable, other receivables,
contract assets, debt investments and other debt investments 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 period, industry of debtor and geographical location of the debtor.
The Group determines the ECL of relevant financial instruments using the following methods:
For a financial asset, the credit loss is 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, the credit loss is 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 details of accounting policies),
the ECL is 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 details of accounting
policies), the expected loss 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 that has become credit-impaired at the balance sheet date, but not a
purchased or originated credit-impaired financial asset, the credit loss 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.
- 28 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
The factors reflected by the Group's measurement of ECL of financial instruments include: unbiased
probability weighted average amount recognized by assessing a series of possible results; time value
of money; reasonable and supportable information related to historical events, current condition and
forecast of future economic position that is available without undue cost or effort at the balance
sheet date.
10.2.4 Write-down of financial assets
When the Group no longer reasonably expects that the contractual cash flows of financial assets
can be collected in aggregate or in part, the Group will directly write down the gross 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.
- 29 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 and (2) the sum of the
consideration received from the transfer and any cumulative gain or loss that has been recognized
in other comprehensive income, is recognized in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI, cumulative gains or losses
previously recognized in other comprehensive income are transferred out and included in retained
earnings.
If a part of the transferred financial asset qualifies for derecognition, the overall carrying amount of
the financial asset prior to transfer is allocated between the part that continues to be recognized and
the part that is derecognized, 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. If the transferred asset is a non-trading equity
instrument investment designated as at FVTOCI, the cumulative gain or loss that has been
previously recognized in other comprehensive income is transferred out and included in retained
earnings.
If the transfer of a financial asset in its entirety does not satisfy the derecognition criteria, the Group
continues to recognize the transferred financial asset in its entirety. The consideration received from
transfer of assets is recognized as a financial liability upon receipt.
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 liabilities 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.
10.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of held-for-trading financial liabilities (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.
- 30 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
A financial liability is classified as held for trading if one of the following conditions is satisfied:
It has been assumed 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; or (iii) the qualified hybrid contract containing
embedded derivatives.
Held-for-trading 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.
For a financial liability designated as at FVTPL, the amount of changes in fair value of the financial
liability that are attributable to changes in the credit risk of that liability shall be presented in other
comprehensive income, while other changes in fair value are included in profit or loss for the current
period. Upon the derecognition of such financial liability, the accumulated amount of change in fair
value due to the change in the credit risk of such financial liability, which was recognized in other
comprehensive income, is transferred to retained earnings. Any dividend or interest expense on the
financial liability is recognized in profit or loss. If the accounting treatment for the impact of the
change in credit risk of such financial liability in the above ways 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 for the period.
For financial liabilities arising from contingent consideration recognized by the Group as the
acquirer in the business combination not involving enterprises under common control, the Group
measures such financial liabilities at fair value, and includes the changes in the financial liabilities
in profit or loss for the period.
- 31 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
10.4.1.2 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.
If the modification or renegotiation for the contract by the Group and its counterparties does not
result in derecognition of a financial liability subsequently measured at amortized cost but the
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 the
carrying amount of the financial liability based on the present value of renegotiated or modified
contractual cash flows discounted at the original effective interest rate of the financial liability. 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 standards.
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.
- 32 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
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 in 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. Derivatives are initially measured at fair value at the date when the derivative
contracts are entered into and are subsequently remeasured at fair value.
For a hybrid contract comprising of embedded derivatives and a host contract, if the host contract
is a financial asset, the Group does not separate the embedded derivatives from the hybrid contract
but takes the hybrid contract as a whole in applying relevant accounting standards regarding the
classification of financial assets.
If the host contract of the hybrid contract is not a financial asset, the embedded derivatives are
separated from the hybrid contract and treated as separate derivatives by the Group when they meet
all 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 contract is not measured at fair value through profit or loss.
- 33 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
For the embedded derivative separated from the hybrid contract, the Group accounts for the host
contract in the hybrid contract with applicable accounting standards. If the fair value of the
embedded derivatives 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 contract and the fair value of the host contract. After
adopting the above method, if the fair value of the embedded derivative still cannot be measured on
a stand-alone basis at acquisition date or subsequent balance sheet dates, the hybrid contract, as a
whole, is designated as financial instruments at FVTPL.
10.6 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to offset 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 split
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.
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 the
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 the effective interest method.
- 34 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
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 amortized cost is reclassified as a financial assets 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 amortized cost is reclassified as a financial asset at 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.
Where a financial asset at FVTOCI is reclassified as a financial asset at amortized cost by the Group,
the accumulated gains or losses previously recognized in other comprehensive income are
transferred out and the fair value at the date of reclassification is adjusted. The adjusted fair value
is determined as the new carrying amount, as if the financial asset has been always measured at
amortized cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.
Where a financial asset at FVTOCI is reclassified as a financial asset at FVTPL by the Group, such
financial asset continues to be measured 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 amortized cost by the Group,
the fair value at the date of reclassification is recognized as the new gross carrying amount.
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.
- 35 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Accounts receivable
The Group performs 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 credit
A records based on historical experience. The probability of default on 0.00-0.10
payment of due amounts is extremely low in the foreseeable future.
The customer may have overdue payment based on historical experience
B 0.10-0.30
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.
12. Receivables financing
Notes receivable classified as at FVTOCI are presented as receivables financing if they are due
within one year (including one year) from the date of acquisition; or presented as other debt
investments if they are due after one year from the date of acquisition. For related accounting
policies, refer to Note (IV) 10.
13. Inventories
13.1 Categories of inventories
Inventories include raw materials, goods on hand 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 methods 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.
- 36 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Inventories - continued
13.3 Basis for determining net realizable value of inventories and provision methods for decline
in value of inventories - continued
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 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.
13.4 Inventory count system
The perpetual inventory system is adopted as inventory count 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 (i.e., depending on the passage of time only) to receive
consideration from the customer is separately presented as receivables.
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 ECL for contract assets.
- 37 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Assets held for sale
Non-current assets and disposal groups are classified as held-for-sale category when the Group
recovers the carrying amount through a sale (including an exchange of nonmonetary assets that has
commercial substance) rather than continuing use.
Non-current assets or disposal groups classified as held-for-sale are required to satisfy the following
conditions: (1) the asset or disposal group is available for immediate sale in its present condition
according to the terms that are usual and customary for sales of such asset or disposal group; (2)
the sale is highly probable, i.e. the Group has made a resolution about selling plan and obtained a
confirmed purchase commitment and the sale is expected to be completed within one year.
When there is loss of control over a subsidiary due to disposal of investments in the subsidiary, and
the proposed disposal of investments in the subsidiary satisfies classification criteria of held-for-
sale category, the investments in subsidiaries are classified as held-for-sale category as a whole in
the Company's separate financial statements, and all assets and liabilities of subsidiaries are
classified as held-for-sale category in the consolidated financial statements regardless of whether
that part of the equity investments are remained after the sale.
The Group measures the non-current assets or disposal groups classified as held-for-sale at the
lower of their carrying amount and fair value less costs to sell. Where the carrying amount is higher
than the fair value net of costs to sell, the carrying amount should be reduced to the fair value net
of costs to sell, and such reduction is recognized in impairment loss of assets and included in profit
or loss for the period. Meanwhile, provision for impairment of held-for-sale assets is made. When
there is an increase in the fair value of non-current assets held-for-sale net of costs to sell at the
balance sheet date, the original reduction should be reversed in impairment loss of assets recognized
after the classification of held-for-sale category, and the reversal amount is included in profit or loss
for the period. The impairment losses recognized before such assets are classified as held-for-sale
category shall not be reversed.
Non-current assets classified as held-for-sale or non-current assets in disposal groups are not
depreciated or amortized, and interest and other costs of liabilities of disposal groups classified as
held-for-sale continue to be recognized.
All or part of equity investments in associates or joint ventures are classified as held-for-sale assets.
For the part that is classified as held-for-sale, it is no longer accounted for using the equity method
since the date of the classification.
If an asset or a disposal group classified as held for sale subsequently no longer satisfy the criteria
for recognition as held-for-sale, 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 of the asset or disposal group
before being classified as held for sale, as adjusted for any depreciation, amortization or impairment
that would have been recognized 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.
If equity investments in associates or joint ventures classified as held for sale no longer satisfy the
criteria of classification as held-for-sale, such investments are accounted for retrospectively using
the equity method from the date when they are classified as held for sale. The financial statements
for the period of classification as held-for-sale are adjusted accordingly.
- 38 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 arrangement, and exists
only when the decisions on relevant activities of the arrangement require unanimous consent of
participants 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 polici es.
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 share of carrying amount of owners' equity of the acquiree in the
consolidated financial statements of ultimate controlling party is recognized as initial investment
cost of long-term equity investment 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 to
absorb the difference, any excess is 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 is the share of carrying amount of owners' equity of the acquiree 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 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. Where equity interests in an acquiree are acquired in stages through
multiple transactions, ultimately constituting a business combination involving enterprises under
common control, the accounting treatment shall be made taking into account whether these
transactions are 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 carrying amount of owners' equity of the acquiree 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 under the equity
method or non-trading equity instrument investments designated as at FVTOCI is not subject to
accounting treatment temporarily.
- 39 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 initial investment cost of the long-term equity investment acquired is
the cost of acquisition.
The absorbing party's or acquirer'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 for the period 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
the 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 recovered investment is adjusted to 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 for investments in associates and joint ventures completely or partly classified as held-for-
sale, 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. A joint venture is a joint
arrangement whereby the Group has rights to only the net assets of the arrangement.
- 40 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 net profit or loss and other
comprehensive income of the investee for the period as investment income and other
comprehensive income respectively for the period. Meanwhile, the carrying amount of the long-
term equity investment is adjusted. The carrying amount of the long-term equity investment shall
be reduced by the attributable portion of profit distributions or cash dividends declared by the
investee. Other changes in owners' equity of the investee other than net profit or loss and other
comprehensive income are correspondingly adjusted to the carrying amount of the long-term equity
investment, and recognized 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 individual identifiable assets, etc. at the
acquisition date after making appropriate adjustments. When the investee's accounting policies and
accounting period are inconsistent with those of the Group, the Group recognizes investment
income and other comprehensive income after making appropriate adjustments to the financial
statements of the investee to conform to the Group's accounting policies and accounting period.
However, unrealized gains or losses resulting from the Group's transactions with its associates and
joint ventures, which do not constitute a business, are eliminated based on the proportion
attributable to the Group and then investment gains or losses are recognized on such basis. 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 recognize its share of net losses of the investee to the extent that 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.
- 41 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 carrying amount and
proceeds actually received 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 under
the equity method is accounted for on the same basis as if the investee had directly disposed of
related assets or liabilities, and is 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 under 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 if the investee had directly disposed of
related assets or liabilities, and is transferred to profit or loss for the period on a pro rata basis;
changes in other owners' equity (other than net profit or loss, other comprehensive income and profit
distribution) in the investee's net assets recognized under the equity method is transferred to profit
or loss for the period on a pro rata basis.
Where the Group loses control over the investee due to partial disposal of equity investments, if the
remaining equity after disposal enables the Group to exercise joint control or significant influence
over the investee, the remaining equity is accounted for using the equity method and adjusted as if
they are accounted for using the equity method since the acquisition date in preparing separate
financial statements; if the remaining equity after disposal does not enable the Group to exercise
joint control or significant influence over the investee, it is accounted for according to relevant
provisions of the standards on recognition and measurement of financial instruments, and the
difference between the fair value and carrying amount at date of losing control is recognized in
profit or loss for the period. Before the Group obtains control over the investee, other
comprehensive income recognized under the equity method or the standards on recognition and
measurement of financial instruments, is accounted for on the same basis as if the investee had
directly disposed of related assets or liabilities when the control over the investee is lost; other
changes in owners' equity (other than net profit or loss, other comprehensive income and profit
distribution) in the investee's net assets recognized under the equity method is transferred to profit
or loss for the period when the control over the investee is lost. Where the remaining equity after
disposal is accounted for using the equity method, other comprehensive income and other owners'
equity are transferred on a pro rata basis. Where the remaining equity after disposal is accounted
for in accordance with the standards on recognition and measurement of financial instruments, other
comprehensive income and other owners' equity are all transferred.
- 42 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Where the Group loses joint control or significant influence over the investee after partial disposal
of equity investments, the remaining equity after disposal is accounted for in accordance with the
standards on recognition and measurement of financial instruments, and the difference between fair
value at the date of losing joint control or significant influence and carrying amount is recognized
in profit or loss for the period. Other comprehensive income previously recognized under the equity
method, is accounted for on the same basis as if the investee had directly disposed of related assets
or liabilities when the equity method is not adopted. Owners' equity recognized due to other changes
in owners' equity other than net profit or loss, other comprehensive income and profit distribution
are transferred to investment income for the period when the equity method is not adopted.
Where the Group disposes of its equity investments in subsidiaries in stages through multiple
transactions until it loses control over the subsidiaries, if these transactions are a "package deal",
they are accounted for as a single transaction of disposal of equity investments in subsidiaries. The
difference between each disposal consideration and the corresponding carrying amount of the long-
term equity investments disposed before the control is lost is first recognized as other
comprehensive income, and then fully transferred to profit or loss for the period when the control
is lost.
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 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 for 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 it is permanently withdrawn 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.
- 43 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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. When the Group is 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 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 for the period
in which they are incurred.
A fixed asset is depreciated over its useful life using the straight-line method since 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 Annual
Category Useful life
residual value rate (%) depreciation rate (%)
Port and terminal facilities 5-50 years 5.00 1.90-19.00
Buildings 5-50 years 5.00 1.90-19.00
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 accounts 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 var ious
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.
- 44 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 borrowi ng 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 for 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. When the Group was 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
output method are amortized over the operating periods according to the ratio of the estimated
minimum guaranteed throughput to the estimated minimum guaranteed total throughput. When the
estimated minimum guaranteed throughput cannot be measured reliably, the straight-line method
will be used for amortization over the operating periods. An intangible asset with indefinite useful
life is not amortized.
- 45 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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:
Residual value rate
Category Amortization Method Useful Life (year)
(%)
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 recognized 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 recognized as an intangible asset. Expenditure during development phase that does not meet
the following conditions is recognized in profit or loss for the period.
(1) it is technically feasible to complete the intangible asset so that it will be availabl e 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 recognizes 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 when the capitalization criteria are satisfied to date when intangible assets are ready for
intended use. For the identical intangible asset, the expenditures expensed and included in profit or
loss before they qualify for capitalization during the development process are not adjusted.
- 46 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 using the cost method, fixed assets,
construction in progress, 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 an 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.
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.
24. Contract liabilities
A contract liability represents the Group's obligation to transfer goods or services to a customer for
consideration received or receivable from the customer. The contract assets and contract liabilities
under the same contract are 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.
- 47 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Employee benefits - continued
25.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make full payments
within the 12 months after the end of the annual reporting period in which the employees have
rendered relevant services, 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, union running costs and employee education
costs, 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 included in the costs of related 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 related assets based on the actually occurred
amounts when it actually occurred. Non-monetary staff welfare expenses are measured at fair value.
For the Group's payments of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, and payments
of housing funds, as well as union running costs and employee education costs provided in
accordance with relevant requirements, the amount of employee benefits are calculated according
to prescribed bases and percentages and recognized as liabilities, with a corresponding charge to
the profit or loss for the period or included in the costs of related assets in the accounting period in
which employees have rendered services.
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 retired or terminated the labor relationship with the enterprises for the
services rendered by the employees, exclusive of the short-term benefits 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 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 benefit 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 in which the employees have rendered services to the Group, the amounts payable
calculated based on the defined contribution plan are recognized as liabilities and included in profit
or loss for the period or included in costs of related assets.
- 48 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
For defined benefit plans, the Group attributes the welfare obligations arising from the defined
benefit plans to the period in which employees provide services to the Group according to the
formula determined based on the projected cumulative benefit unit method, and includes them in
profit or loss for the period or costs 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 plans (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 or net assets of defined benefit plans are recognized
in profit or loss for the period or included in costs of related assets. Changes arising from
remeasurement of the net defined benefit liability or asset (including actuarial gains and losses, the
return on plan assets, excluding amounts included in net interest on the net defined benefit liability
or asset, and any change in the effect of the asset ceiling, excluding amounts included in net interest
on the net defined benefit liability or 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
asset.
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. Where the Group provides termination
benefits to employees, the liabilities arising from termination benefits are recognized and included
in 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.
- 49 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Employee benefits - continued
25.4 Other long-term employee benefits - continued
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 benefit 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 cost of related assets.
The Group provides internal retirement benefits to employees accepting internal retirement
arrangements. Internal retirement benefits refer to payments of salaries and social security
contributions for employees who have not reached 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
rendering services to the date of normal retirement are recognized as liabilities at the present value
and included in 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, and
it is probable that an outflow of economic benefits will be required to settle the obligation, and the
amount of the obligation can be measured reliably.
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 factors pertaining to a contingency such
as the risks, uncertainties and time value of money. Where the effect of the time value of money is
material, the amount of the provision is determined by discounting the related future cash outflows.
Where all or some of the expenditure required to settle a provision is expected to be reimbursed by
a third party, the reimbursement is recognized as a separate asset only when it is virtually certain
that reimbursement will be received, and the amount of reimbursement recognized does not exceed
the carrying amount of the provision.
27. Revenue recognition
The Group's revenue is mainly from the following business types:
(1) Port services;
(2) Bonded logistics services;
(3) Other services such as property development and investment.
- 50 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Revenue recognition - continued
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 and the Group recognizes revenue
during a period of time according to the progress of performance if one of the following conditions
is met: (i) the customer obtains and consumes economic benefits at the same time of the Group's
performance; (ii) the customer is able to control goods in progress during the Group's performance;
(iii) goods or services generated during the Group's performance have irreplaceable utilization, and
the Group is entitled to collect amounts of cumulative performance part which have been done up
to now. Otherwise, the Group will recognize revenue at the point in time when the customer obtains
control over relative goods or services.
The Group adopts the 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.
Contract assets refers to the Group's right to consideration in exchange for goods or services that
the Group has transferred to a customer when that right is conditioned on something other than the
passage of time. Accounting policies relating to the impairment of 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 refers to the Company's obligation to transfer goods or services to a customer
for which the Company has already received consideration from the customer.
Contract assets and contract liabilities under the same contract are presented at net amount.
If there are two or more of performance obligations included in the contract, at the inception of the
contract, the Group allocates the transaction price to each single performance obligation based on
the proportion of stand-alone selling price of goods or services promised in each stand-alone
performance obligation. However, if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not the whole) performance
obligations in the contract, the Group will allocate the contract discount or variable consideration
to relative one or more performance obligations. Stand-alone selling price refers to the price of a
single sale of goods or services. If the stand-alone selling price cannot be observed directly, the
Group estimates the stand-alone selling price through comprehensive consideration of all relative
information that can be reasonably acquired and maximum use of observable inputs.
- 51 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Revenue recognition - continued
In case of the existence of variable consideration (such as sales discount) in the contract, the Group
shall determine the best estimate of variable consideration based on the expected value or the most
likely amount. The transaction price including variable consideration shall not exceed the amount
of the cumulatively recognized revenue which is unlikely to be significantly reversed when relevant
uncertainty is eliminated. At each balance sheet date, the Group re-estimates the amount of variable
consideration which should be included in transaction price.
Where the customer pays non-cash consideration, 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.
Where the contract includes significant financing component, the Group determines the transaction
price based on assumption that the customer has paid the amount payable by cash when obtaining
the control over the goods or services. The difference between the transaction price and the contract
consideration is amortized within the contract period using effective interest method. At the
inception of the contract, if the Group expects that the time interval between the customer's
obtaining control of a promised goods or service and the customer's payment for that goods or
service will not exceed one year, the Group will not consider the significant financing component
in the contract.
The Group assesses whether it controls each specified good or service before that good or service
is transferred to the customer to determine whether the Group is a principal or an agent. If the Group
controls the specified good or service before that good or service is transferred to a customer, the
Group is a principal and recognizes revenue in the gross amount of consideration received or
receivable. Otherwise, the Group is an agent and recognizes revenue in the amount of any fee or
commission to which it expects to be entitled. The fee or commission is the net amount of
consideration that the Group retains after paying the other party the consideration received in
exchange for the goods or services to be provided by that party, or is determined in accordance with
the established commission amount or percentage, etc.
Where the Group receives receipts in advance from a customer for sales of goods or rendering of
services, the amount is first recognized as a liability and then transferred to revenue when the related
performance obligation has been satisfied. When the Group's receipts in advance are not required
to be refunded and it is probable that the customer will waive all or part of its contractual rights, the
Group recognizes the said amounts as revenue on a pro-rata basis in accordance with the pattern of
exercise of the customer's contractual rights, if the Group expects to be entitled to the amounts
relating to the contractual rights waived by the customer; otherwise, the Group reverses the related
balance of the said liabilities to revenue only when it is highly unlikely that the customer will require
performance of the remaining performance obligations.
- 52 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Contract costs
28.1 Costs of obtaining a contract
For the incremental cost of obtaining the contract (cost that will not incur if the contract is not
obtained) that is expected to be recoverable, it is recognized as an asset, and shall be amortized on
a basis that is consistent with the revenue recognition of the goods or services to which the as set
relates and recognized in profit or loss for the period. If the amortization period of such asset is less
than one year, it is recognized in profit or loss for the period when incurred. Other expenses incurred
for obtaining the contract is included in profit or loss for the period when incurred, except for those
explicitly assumed 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 standards other than
the revenue standards, the Group shall recognize 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.
28.3 Losses of assets related to contract costs
In determining the impairment losses of assets related to contract costs, the Group first determines
impairment losses of other assets related to contracts recognized in accordance with other 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 assets; 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.
After the provision for impairment of assets related to contract costs is made, if factors of
impairment in previous periods change so that the difference between the above two is higher than
the carrying amount of the assets, the original provision for impairment of the assets is reversed and
recognized in profit or loss for the period, provided that the carrying amount of the assets after the
reversal does not exceed the carrying amount of the assets at the date of reversal assuming no
provision for impairment is made.
29. Government grants
Government grants are transfers 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 conditions attached to the grant and the Group will receive the grant.
- 53 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Government grants - continued
If a government grant takes the form of a monetary asset, it is measured at the amount received or
receivable. If a government grant takes 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 for the period. Where the related 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 for 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 assets and income, different parts are distinguished for
different accounting treatments; if it is difficult to distinguish, they should be classified as
government grants related to income as a whole.
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 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.
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 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.
- 54 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
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, associates and 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 in subsidiaries, associates and joint ventures are only
recognized to the extent that future taxable profits will be available against which the deductible
temporary differences can be utilized and they are expected to be reversed 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 related assets are recovered or the related liabilities are 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 shareholders' equity, in which case they are recognized in other comprehensive income
or in shareholders' 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.
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.
- 55 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
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
A lease is a contract whereby the lessor conveys to the lessee in return for a consideration the right
to use an asset for an agreed period of time.
For contracts entered into, the Group assesses whether a contract is or contains a lease at inception
date. Such contract will not be reassessed unless the terms and conditions of the contract are
subsequently changed.
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.
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 right-of-use assets. The commenceme nt
date of the lease is the date on which a lessor makes an underlying asset available for use by the
Group. Right-of-use assets are initially measured 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.
- 56 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - continued
The Group depreciates right-of-use assets by reference to the relevant depreciation provisions of
Accounting Standards for Business Enterprises No. 4 - Fixed Assets. The right-of-use assets are
depreciated over the remaining useful lives of the leased assets where the Group is reasonably
certain to obtain ownership of the underlying assets at the end of the lease term. Otherwise, right-
of-use assets are depreciated over the shorter of the lease term and the remaining useful lives of the
leased assets.
The Group applies Accounting Standards for Business Enterprises 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.
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 recognized in profit or loss, or in the cost of relevant assets, in the period of
those payments.
After the commencement date, interest expenses 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 included in profit or loss or charged to cost of related assets.
- 57 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
After the commencement date, if one of the following occurs, the lease liabilities are remeasured
by the Group with the adjustments to the related right-of-use assets. If the carrying amount of the
right-of-use assets is reduced to zero and there is a further reduction in the measurement of the lease
liabilities, the difference 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.
31.1.4 Short-term leases and leases of low-value assets
The Group chooses not to recognize right-of-use assets and lease liabilities for short-term leases of
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 of low-value assets.
A short-term lease is a lease that at the commencement date, has a lease term of 12 months or less
and does not contain a call option. A lease of low-value assets is that, the value of the underlying
asset is less than RMB 50,000 when it is new. The Group shall recognize the lease payments
associated with short-term leases and leases of low-value assets in profit or loss or cost of related
assets 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.
- 58 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
31.1.5 Lease modifications - continued
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 a contract contains both lease components and non-lease components, the Group shall
apportion the contract consideration in accordance with the provisions of the revenue standards on
the apportionment of the transaction price, based on the respective individual prices of the lease
components and the non-lease components.
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 recognizes lease receipts from operating leases as rental income the straight-line method
over the respective periods of the lease term. The Group capitalizes initial direct costs incurred in
connection with operating leases and apportions those costs profit or loss for the period as an
expense over the lease term on the same basis as the recognition of lease income.
Variable lease receipts acquired by the Group in connection with operating leases that are not
included in the lease receipts are recognized in profit or loss 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 lease investment with assets under finance leases derecognized. The net lease investment is
the sum of any unguaranteed residual value and the present value of the lease receipts over the lease
term discounted at the interest rate implicit in lease.
- 59 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
The lease receivable comprises the following payments collected by the Group from the lessee for
the transfer of the right to use the underlying assets during the lease term:
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.
payments for terminating the lease option, provided that the lease term reflects that the lessee
will exercise the option to terminate the lease.
residual value of the guarantee provided to the Group by the lessee, a party related to the
lessee and an independent third party with the financial ability to fulfil guaranteed obligations.
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 calculated and recognized by the Group at a
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 the modification to a finance lease as a separate lease if both of the
followings are satisfied:
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.
- 60 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
31.2.4 Lease modifications - continued
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 had the modification been in effect
at the inception date, the Group should apply the requirements of contract modification and
renegotiation under the ASBE No. 22.
31.2.5 Sale and leaseback transactions
31.2.5.1 The Group as the seller-lessee
The Group assesses and determines whether the transfer of an asset in a sale and leaseback
transaction constitutes a sale according to the requirements of revenue standards. If the transfer of
an asset does not constitute a sale, the Group should continue to recognize the transferred asset and
should recognize a financial liability at an amount equal to the transfer proceeds applying the ASBE
No. 22 . 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 original carrying amount of the asset that relates to the
right of use, and recognize only 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 a financial asset at an amount equal to the transfer
proceeds, and accounts for such financial asset under the ASBE No. 22. 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
When a non-monetary assets transaction has commercial substance and the fair value of the assets
received or surrendered can be measured reliably. For assets received, the fair value of the assets
surrendered and relevant payable taxes shall be regarded as the transaction cost of the assets
received at initial recognition. For assets surrendered, the difference between the fair value and the
carrying value of the asset surrendered shall be recognized in profit or loss for the period. When
there is clear evidence indicating that the fair value of the assets received is more reliable, the cost
of assets received and surrendered shall be calculated in different ways. For the assets received, the
fair value of the asset received and related taxes payable are recognized as the cost at initial
recognition. For the assets surrendered, at derecognition, the difference between the fair value of
the assets received and the carrying amount of the assets surrendered shall be recognized in profit
or loss for the period.
- 61 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Exchange of Non-Monetary Assets - continued
Where a non-monetary assets transaction fails to meet criteria to be measured at fair value, the
transaction is measured at carrying amount. For the assets received, the carrying amount of the
assets surrendered and relevant taxes payable are recognized as the cost at initial recognition. For
the assets surrendered, at derecognition, no profit or loss is recognized.
33. Discontinued Operation
A discontinued operation is a component of the Group that can be clearly distinguished, either has
been disposed of or is classified as held for sale, and meets one of the following conditions:
(1) Such component represents a separate major line of business or geographic area of
operations.
(2) Such component is part of a single coordinated plan to dispose of a separate major line of
business or geographic area of operations.
(3) Such component is a subsidiary acquired exclusively with a view to resale.
Gains or losses from discontinued operations are presented separately from those from continuing
operations in the income statement. Operating gains or losses such as impairment losses from
discontinued operations and the amount of reversals, and the gains or losses from disposals are
presented as discontinued operations. For discontinued operations presented in the current period,
the Group restates the information previously presented as gains or losses from continuing
operations in the financial statements for the period as discontinued operations in the comparable
accounting period.
34. Safety production cost
According to the Administrative Measures for the Collection and Utilization of Enterprise Work
Safety Funds (Cai Zi [2022] No. 136) jointly issued by the Ministry of Finance and the Emergency
Department on 13 December 2022, 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, and transferred to the
special reserve simultaneously. 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.
- 62 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
35. Share-based payments - continued
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.
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies and accounting estimates as set out in Note (IV), the Group
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 Group's management as well as other factors that are considered to be relevant.
Actual results may differ from these estimates.
The Group 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 in critical
judgments and accounting estimates 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 the date on
which the profit distribution plan is changed and the date on which the profit distribution is declared,
in profit and loss for the period.
- 63 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Recognition of deferred income tax - continued
Deferred tax assets are recognized based on the deductible temporary difference and the
corresponding tax rate, to the extent that it is probable that future taxable profit will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
the future is more or less than that expected, corresponding deferred tax assets will be recognized
or reversed in profit or loss for the period in which they are actually incurred.
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 amortization, or write off or
eliminate the technically obsolete fixed assets or intangible assets.
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
1. Changes in significant accounting policies and their effects
1.1 Interpretation No. 16 of the Accounting Standards for Business Enterprises
The Interpretation No. 16 of the Accounting Standards for Business Enterprises (the "Interpretation
No. 16") was issued by the Ministry of Finance on 30 November 2022, which stipulated the
accounting treatment concerning the exemption of initial recognition of deferred income tax relating
to assets and liabilities arising from a single transaction.
The Interpretation No. 16 revised the coverage of exemption of the initial recognition of deferred
income tax in the Accounting Standards for Business Enterprises No. 18 - Income Tax, and specified
that the relevant provisions on the exemption of initial recognition of deferred tax liabilities and
deferred tax assets are not applicable to a single transaction (not a business combination) that affects
neither the accounting profit nor taxable income (or deductible losses) at the time of transaction,
and where the assets and liabilities initially recognized generate equal taxable temporary differences
and deductible temporary differences. The Interpretation became effective from 1 January 2023 and
could be early applied. The Group early applied the Interpretation in the current year, and accounted
for the single transactions retrospectively that occurred between the beginning of the earliest
presentation period of the financial statements and 31 December 2022, and restated the comparative
financial statements. The impact on the relevant items is as follows:
- 64 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
1. Changes in significant accounting policies and their effects - continued
1.1 Interpretation No. 16 of the Accounting Standards for Business Enterprises - continued
Item 1/1/2022 Adjustment 1/1/2022
Assets:
Deferred tax assets 398,145,710.84 56,499,013.55 454,644,724.39
Liabilities:
Deferred tax liabilities 4,550,417,470.61 2,001,049.09 4,552,418,519.70
Shareholders' equity:
Unappropriated profit 14,205,879,106.49 21,052,360.17 14,226,931,466.66
Minority interests 71,234,238,229.35 33,445,604.29 71,267,683,833.64
Item 31/12/2022 Adjustment 31/12/2022
Assets:
Deferred tax assets 372,927,261.40 61,571,559.55 434,498,820.95
Liabilities:
Deferred tax liabilities 4,853,271,307.86 1,748,527.47 4,855,019,835.33
Shareholders' equity:
Other comprehensive
-691,536,248.44 1,982,628.58 -689,553,619.86
income
Unappropriated profit 16,679,688,347.09 22,299,954.05 16,701,988,301.14
Minority interests 73,994,641,893.21 35,540,449.45 74,030,182,342.66
Item 2022 Adjustment 2022
Profit or loss:
Income tax expenses 1,113,179,679.35 -220,002.60 1,112,959,676.75
Net profit 8,231,683,297.67 220,002.60 8,231,903,300.27
Profit or loss attributable
4,894,237,074.85 -1,027,591.28 4,893,209,483.57
to minority interests
Other comprehensive income
attributable to shareholders 206,102,739.65 1,982,628.58 208,085,368.23
of the Company, net of tax
Other comprehensive income
attributable to minority 1,417,424,133.35 3,122,436.44 1,420,546,569.79
interests, net of tax
Item January - June 2022 Adjustment January - June 2022
Profit or loss:
Income tax expenses 625,643,717.42 -6,510,739.27 619,132,978.15
Net profit 4,879,983,423.23 6,510,739.27 4,886,494,162.50
Profit or loss attributable
2,898,122,098.61 -188,893.94 2,897,933,204.67
to minority interests
Other comprehensive income
attributable to shareholders -18,696,061.65 1,011,930.07 -17,684,131.58
of the Company, net of tax
Other comprehensive income
attributable to minority 460,425,177.92 1,703,020.82 462,128,198.74
interests, net of tax
- 65 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VII) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
Taxable income 8.25%-34% (Note 1)
Enterprise income tax
Dividend income tax 5%, 10% (Note 2)
Income from sale of goods 9%, 13%
Income from transportation, loading and
Value-added Tax unloading business and part of modern service 6%
("VAT") (Note 3) industries
Income from sale of real estate, property
3%, 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 surcharges VAT paid 3%
Land use tax Land area actually occupied RMB 0.8-12 per square meter
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
8.25% and 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 27%
and 34%.
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 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%.
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.
- 66 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VII) TAXES - continued
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.
For the period from 1 January 2023 to 31 December 2027, 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.
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item 30/6/2023 31/12/2022
Cash on hand 5,239,515.56 726,960.10
RMB 2,767.60 2,767.60
USD 194,787.09 44,853.90
HKD 26,964.67 26,167.88
XOF 4,689,468.47 204,626.05
BRL 8,820.47 6,536.63
Others 316,707.26 442,008.04
Bank deposits (Note 1) 14,256,207,464.50 13,061,475,159.69
RMB 10,947,167,940.52 10,688,462,520.89
USD 2,226,239,397.64 1,045,085,866.19
EUR 676,483,008.93 745,066,787.31
BRL 179,341,909.61 379,062,088.91
HKD 201,423,648.76 141,668,372.90
AUD 11,786.68 4,708,056.85
Others 25,539,772.36 57,421,466.64
Other monetary funds (Note 2) 179,242,912.54 553,726,619.61
RMB 61,171,729.51 340,778,819.19
HKD 117,681,853.83 212,571,712.02
USD 389,329.20 376,088.40
Total 14,440,689,892.60 13,615,928,739.40
Including: Total amount of funds deposited overseas 4,440,318,647.60 4,012,922,744.09
Total amount of funds deposited in finance companies 913,608,945.27 1,841,698,554.32
Note 1: The closing balance of bank deposits includes interest receivable of RMB 7,852,286.96
and the frozen funds of ETC card business of RMB 12,000.00.
Note 2: The balance of the securities margin account totaled RMB 125,363,071.85 in other cash
and bank balances at the end of the period, 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
period totaled RMB 50,000,000.00, the interest of the time certificate of deposit totaled
RMB 346,221.49, the restricted deposit totaled RMB 3,533,619.20.
- 67 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
2. Held-for-trading financial assets
Item 30/6/2023 31/12/2022
Financial assets measured at FVTPL 4,645,336,576.09 2,998,781,599.63
Including: Equity investment instruments - 13574211
Structured deposits 4,645,336,576.09 2,998,645,857.52
Total 4,645,336,576.09 2,998,781,599.63
3. Notes receivable
(1) Classification of notes receivable
Category 30/6/2023 31/12/2022
Bank acceptance 186,028,246.15 395,000.00
Commercial acceptance - 36,000,000.00
Total 186,028,246.15 36,395,000.00
Less: Provision for credit losses (Note) - -
Carrying amount 186,028,246.15 36,395,000.00
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 2023, there were no notes receivable pledged.
(3) As at 30 June 2023, there were no notes receivable endorsed or discounted but unmatured
at the balance sheet date.
(4) As at 30 June 2023, there were 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 2023, there were no notes receivable written off.
4. Accounts receivable
(1) Disclosure of accounts receivable by aging
30/6/2023
Aging
Accounts receivable Provision for credit loss Proportion (%)
Within 1 year 2,094,587,779.58 24,963,870.21 1.19
1 - 2 years 20,964,069.55 9,280,113.40 44.27
2 - 3 years 3,463,930.96 2,144,229.20 61.90
Over 3 years 67,452,065.90 66,083,186.94 97.97
Total 2,186,467,845.99 102,471,399.75 4.69
- 68 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(2) Disclosure of accounts receivable by categories
30/6/2023 31/12/2022
Credit
ECL rate (% ) Gross carrying Provision for Gross carrying Provision for
rating Book value Book value
amount credit loss amount credit loss
A 0.00-0.10 1,348,465,570.21 628,740.36 1,347,836,829.85 757,893,845.42 254,506.65 757,639,338.77
B 0.10-0.30 648,061,012.35 593,266.86 647,467,745.49 437,329,923.88 579,435.66 436,750,488.22
C 0.30-50.00 95,320,508.67 13,436,823.75 81,883,684.92 91,915,183.34 12,581,359.16 79,333,824.18
D 50.00-100.00 94,620,754.76 87,812,568.78 6,808,185.98 83,024,004.24 80,597,965.97 2,426,038.27
Total 2,186,467,845.99 102,471,399.75 2,083,996,446.24 1,370,162,956.88 94,013,267.44 1,276,149,689.44
(3) Changes in provision for credit loss of accounts receivable
Lifetime ECL Lifetime ECL
Item Total
(not credit-impaired) (credit-impaired)
Opening balance 13,415,301.47 80,597,965.97 94,013,267.44
Gross carrying amount of accounts receivable at 1 January 2023
-- Transfer to credit-impaired
-84,939.18 84,939.18 -
accounts receivables
-- Reverse to not credit-impaired
- - -
accounts receivable
Provision for the period 1,522,412.78 6,995,029.89 8,517,442.67
Reversal for the period -845,775.96 -1,579,894.47 -2,425,670.43
Transfer-out on derecognition of financial
- - -
assets (including direct write-down)
Other changes 651,831.86 1,714,528.21 2,366,360.07
Closing balance 14,658,830.97 87,812,568.78 102,471,399.75
(4) For the period from 1 January to 30 June 2023, there were no accounts receivable written
off during this period.
(5) Top five balances of account receivables classified by debtor
Proportion of the Closing balance of
Name of entities 30/6/2023 Aging amount to the total provision for
accounts receivable (%) credit loss
Client 1 654,725,695.87 Within 1 year, 1 - 2 years 29.94 4,556.21
Client 2 63,695,381.12 Within 1 year 2.91 -
Client 3 54,509,949.10 Within 1 year 2.49 -
Client 4 42,497,336.16 Within 1 year, 1 - 2 years 1.94 148.55
Client 5 32,409,055.59 Within 1 year 1.48 -
Total 847,837,417.84 38.76 4,704.76
5. Receivables financing
(1) Receivables financing classification
Item 30/6/2023 31/12/2022
Bank acceptance measured at fair value - 163,766,913.10
(2) As at 30 June 2023, the Group has no pledged receivables financing.
- 69 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 2023, receivables financing endorsed or discounted which are not yet due at
the balance sheet date are as follows
30/6/2023 31/12/2022
Item
Derecognized Recognized Derecognized Recognized
Bank acceptance measured at fair value 47,471,451.74 - 105,141,033.28 -
6. Prepayments
(1) Presentation of prepayments by aging
30/6/2023 31/12/2022
Aging Gross carrying Provision for Gross carrying Provision for
Proportion (% ) Proportion (% )
amount impairment amount impairment
Within 1 year 83,385,768.48 98.99 - 61,917,391.43 97.31 -
1 - 2 years 725,500.99 0.86 - 1,589,158.49 2.50 -
2 - 3 years 33,106.07 0.04 - - - -
Over 3 years 96,875.50 0.11 - 120,875.50 0.19 -
Total 84,241,251.04 100.00 - 63,627,425.42 100.00 -
(2) As at 30 June 2023, the Group has no significant prepayments aged more than one year.
(3) Top five balances of prepayments at the end of the period classified by entities
Proportion of the closing
Relationship with
Name of entities 30/6/2023 Aging balance to the total Reason for not being settled
the Company
prepayments (% )
Unsettled prepaid
Entity 1 Non-related party 10,378,696.99 Within 1 year 12.32
communication expenses
Entity 2 Non-related party 7,913,085.18 Within 1 year 9.39 Unsettled advance premium
Unsettled advance labor
Entity 3 Non-related party 4,748,700.38 Within 1 year 5.64
expenses
Within 1 year Unsettled prepaid
Entity 4 Non-related party 4,256,518.06 5.05
& 1 - 2 years communication expenses
Within 1 year
Entity 5 Non-related party 3,074,177.02 3.65 Unsettled advance premium
& 1 - 2 years
Total 30,371,177.63 36.05
7. Other receivables
7.1 Summary of other receivables
Item 30/6/2023 31/12/2022
Dividends receivable 1,386,530,246.60 416,040,485.62
Other receivables 619,906,260.78 532,801,608.68
Total 2,006,436,507.38 948,842,094.30
- 70 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 Dividends receivable
(1) Presentation of dividends receivable
Name of investees 30/6/2023 31/12/2022
Shanghai International Port (Group) Co., Ltd. ("SIPG") 914,383,798.30 -
China Nanshan Development (Group) Incorporation ("Nanshan Group") 240,591,000.00 240,591,000.00
Qingdao Qianwan United Container Terminal Co., Ltd. 50,000,000.00 50,000,000.00
Liaoning Port Co., Ltd. ("Liaoning Port") 47,754,255.87 -
Zhanjiang Merchants Port City Investment Co., Ltd. ("Merchants Port City") 41,847,044.77 41,847,044.77
Qingdao Port International Co., Ltd. 41,451,110.91 -
Tin-Can Island Container Terminal Ltd 32,242,479.35 65,121,449.40
COSCO Logistics (Zhanjiang) Co., Ltd. 18,449,001.16 18,449,001.16
Others 1,199,474.53 448,447.23
Total 1,387,918,164.89 416,456,942.56
Less: Provision for credit loss 1,387,918.29 416,456.94
Book value 1,386,530,246.60 416,040,485.62
(2) Significant dividends receivable aged more than one year
Impaired or not,
Name of
30/6/2023 31/12/2022 Aging Why unrecovered and basis of
investee
determination
Relevant procedures
are being handled and
1 - 2 years &
Nanshan Group 111,042,000.00 111,042,000.00 it is expected to be No
2 - 3 years
recovered by the end
of 2023
(3) Changes in provision for credit loss of dividends receivable
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
Opening balance 416,456.94 - - 416,456.94
Gross carrying amount of dividends receivable at 1 January 2023
-- Transfer to stage 2 - - - -
-- Transfer to stage 3 - - - -
-- Reversal to stage 2 - - - -
-- Reversal to stage 1 - - - -
Provision for the period 971,461.22 - - 971,461.22
Reversal for the period - - - -
Transfer-out on derecognition
of financial assets (including - - - -
direct write-down)
Other changes 0.13 - - 0.13
Closing balance 1,387,918.29 - - 1,387,918.29
- 71 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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) Disclosure of other receivables by aging
30/6/2023
Aging Provision for
Other receivables Proportion (%)
credit loss
Within 1 year 501,774,160.72 188,260,025.68 37.52
1 - 2 years 190,128,116.37 4,957,459.05 2.61
2 - 3 years 43,455,737.68 5,810,476.64 13.37
Over 3 years 887,594,183.14 804,017,975.76 90.58
Total 1,622,952,197.91 1,003,045,937.13 61.80
(2) Presentation of other receivables by nature
Item 30/6/2023 31/12/2022
Operation compensation (Note 1) 859,526,752.84 859,677,826.43
Advances 305,255,064.41 295,592,304.09
Land compensation (Note 2) 89,630,000.00 89,630,000.00
Deposits 47,560,784.42 26,402,747.81
Special subsidy 31,716,257.00 31,716,257.00
Others 289,263,339.24 233,051,614.17
Total 1,622,952,197.91 1,536,070,749.50
Less: Provision for credit loss 1,003,045,937.13 1,003,269,140.82
Book value 619,906,260.78 532,801,608.68
Note 1: This represents the operation compensation receivable by a subsidiary of the Company
from the holding company of its minority shareholder in accordance with the agreement.
As at 30 June 2023, the Group has fully made provision for credit losses on the accumulated
outstanding compensation amounting to RMB 859,526,752.84 which has not been received
yet.
Note 2: On 9 October 2021, Zhanjiang Port (Group) Co., Ltd., (hereinafter referred to as the
"Zhanjiang Port"), a 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 equivalent to RMB 89,630,000.00. The
aforementioned land was then returned before 31 December 2021. As at 30 June 2023, the
above-mentioned land compensation of RMB 89,630,000.00 has not been recovered yet.
(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.
- 72 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
(3) Provision for credit loss on other receivables - continued
As at 30 June 2023, the credit risk and ECL of other receivables of each category of customers are
presented as follows:
30/6/2023 31/12/2022
ECL rate Lifetime ECL Lifetime ECL Lifetime ECL Lifetime ECL
Credit rating 12-month 12-month
(%) (not credit- (credit- Total (not credit- (credit- Total
ECL ECL
impaired) impaired) impaired) impaired)
A 0.00-0.10 618,034,114.14 - - 618,034,114.14 532,760,873.61 - - 532,760,873.61
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 1,004,918,083.77 1,004,918,083.77 - - 1,003,309,875.89 1,003,309,875.89
Gross carrying
618,034,114.14 - 1,004,918,083.77 1,622,952,197.91 532,760,873.61 - 1,003,309,875.89 1,536,070,749.50
amount
Provision
for credit 25,765.15 - 1,003,020,171.98 1,003,045,937.13 24,451.35 - 1,003,244,689.47 1,003,269,140.82
loss
Book value 618,008,348.99 - 1,897,911.79 619,906,260.78 532,736,422.26 - 65,186.42 532,801,608.68
Including: Significant other receivables for which the provision for credit loss is assessed
individually at the end of the period (credit rating of D)
Provision for
Name of entities 30/6/2023 ECL rate (%) Reasons for provision
credit loss
Entity 1 859,526,752.84 859,526,752.84 100.00 Expected to be unrecoverable (Note)
Entity 2 110,593,785.02 108,624,448.23 98.22 Expected to be unrecoverable
Entity 3 14,000,000.00 14,000,000.00 100.00 Expected to be unrecoverable
Total 984,120,537.86 982,151,201.07 —— ——
Note: Refer to Note 1 to Note (VIII) 7.3 (2) for details.
(4) Provision for and recovery or reversal of credit loss of other receivables for the period
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
Opening balance 24,451.35 - 1,003,244,689.47 1,003,269,140.82
Gross carrying amount of other receivables at 1 January 2023
--Transfer to stage 2 - - - -
--Transfer to stage 3 -4,342.69 - 4,342.69 -
--Reversal to stage 2 - - - -
--Reversal to stage 1 180,361.18 - -180,361.18 -
Provision for the period 531.59 - 51,410.13 51,941.72
Reversal for the period -175,236.28 - - -175,236.28
Other changes - - -99,909.13 -99,909.13
Closing balance 25,765.15 - 1,003,020,171.98 1,003,045,937.13
(5) The Group has no other receivables written off for the period from 1 January to 30 June
2023.
- 73 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
(6) At the end of the period, top five balances of other receivables classified by debtor are as
follows:
Proportion of the
Provision for credit
amount to the total
Name of entities Nature 30/6/2023 Aging loss at the end of the
other receivables
current period
(% )
Within 1 year, over
Entity 1 Operation compensation 859,526,752.84 52.96 859,526,752.84
3 years
Within 1 year, 1 - 2
Entity 2 Advances 122,674,255.48 7.56 -
years, 2 - 3 years
Within 1 year, 2 - 3
Entity 3 Advances 110,593,785.02 6.81 108,624,448.23
years, over 3 years
Entity 4 Land compensation 89,630,000.00 1 - 2 years 5.52 -
Entity 5 Advances 53,305,610.59 Within 1 year 3.28 -
Total 1,235,730,403.93 76.13 968,151,201.07
(7) Receivables involving government grants
Time and amount expected to be
Name of entities Item 30/6/2023 Aging
received and its basis
Shantou CM Port Group Special subsidy for Expected to be recovered
2 - 324,800,000.00
Co., Ltd. ("Shantou Port") barge line business by the end of 2023
Business development Expected to be recovered
Shantou Port 1 - 2 years
subsidy by the end of 2023
Total 31,716,257.00
8. Inventories
(1) Categories of inventories
30/6/2023 31/12/2022
Provision for Provision for
Item Gross carrying Gross carrying
decline in value Book value decline in value Book value
amount amount
of inventories of inventories
Raw materials 226,504,438.82 1,276,181.39 225,228,257.43 196,425,573.04 1,326,130.64 195,099,442.40
Goods on hand 18,387,867.55 - 18,387,867.55 17,248,970.37 - 17,248,970.37
Others 725,036.14 - 725,036.14 12,774,408.71 - 12,774,408.71
Total 245,617,342.51 1,276,181.39 244,341,161.12 226,448,952.12 1,326,130.64 225,122,821.48
(2) Provision for decline in value of inventories
Provision Decrease
Item 31/12/2022 30/6/2023
Provision Others Reversal Write-off
Raw materials 1,326,130.64 - 15,375.59 65,324.84 - 1,276,181.39
(3) As at 30 June 2023, the Group has no capitalized borrowing cost in the balance of
inventories.
- 74 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 disposal
Item Disposal date
end of the period end of the period expenses
Disposal group held for sale (Note) 4,034,332,787.01 4,364,666,376.36 1,762,730.00 8 August 2023
Less: Provision for impairment
-
of assets held for sale
Book value 4,034,332,787.01
Note: The Company's subsidiary Cyber Chic Company Limited listed its 45% equity in Ningbo
Daxie China Merchants International Terminals Co., Ltd. ("Ningbo Daxie") at China
Beijing Equity Exchange on 20 April 2023. On 19 May 2023, Ningbo Zhoushan Port
Company Limited ("Ningbo Zhoushan") became the transferee. On 25 May 2023, Cyber
Chic Company Limited and Ningbo Zhoushan signed the Equity Transfer Contract, with
transfer price (inclusive of tax) amounting to RMB 1,845,000,000.00. As of 30 June 2023,
the Transaction has not yet been completed.
10. Non-current assets due within one year
Item 30/6/2023 31/12/2022
Long-term receivables due within one year 59,092,591.98 903,128,422.35
Less: Provision for credit loss 59,092.59 903,128.42
Book value 59,033,499.39 902,225,293.93
11. Other current assets
Categories of other current assets:
Item 30/6/2023 31/12/2022
Input tax to be deducted and to be certified 74,840,534.57 70,627,183.33
Prepaid taxes 67,972,442.47 98,329,205.73
Others 5,982,724.60 16,946,751.47
Total 148,795,701.64 185,903,140.53
Less: Provision for credit loss - -
Book value 148,795,701.64 185,903,140.53
12. Long-term receivables
(1) Details of long-term receivables
Range of discount
30/6/2023 31/12/2022 rate at the end
Item of the period
Gross carrying Provision for Gross carrying Provision for
Book value Book value
amount credit loss amount credit loss
Advances to
4,220,399,632.45 4,220,399.63 4,216,179,232.82 3,864,736,673.31 3,864,736.67 3,860,871,936.64 4.75%-8.50%
shareholders (Note 1)
Financing lease deposits 10,678,959.27 10,678.96 10,668,280.31 10,659,515.88 10,659.52 10,648,856.36 0-5.37%
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)
Total 6,923,110,591.72 4,231,078.59 6,918,879,513.13 6,567,428,189.19 3,875,396.19 6,563,552,793.00 -
Less: Long-term
receivables due 59,092,591.98 59,092.59 59,033,499.39 903,128,422.35 903,128.42 902,225,293.93 -
within 1 year
Long-term receivables
6,864,017,999.74 4,171,986.00 6,859,846,013.74 5,664,299,766.84 2,972,267.77 5,661,327,499.07 -
due over 1 year
- 75 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 aggregate of the Group's principal and interest receivable from
Terminal Link SAS, equivalent to RMB 3,288,169,195.32.
As at 26 March 2020, China Merchants Port Holdings Company ("CM Port"), 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 interest rate of 6%.
As of 31 May 2023, CM Port, a subsidiary of the Company, provided a long-term loan to
Terminal Link SAS for its Thessaloniki Port Project and charged interest to Terminal Link
SAS at an interest rate of 6.15%.
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 were equivalent to RMB
1,558,032,000.00. Therein, the land and attached building of approximately 183.63 mu has
been handed over in 2019, while the remaining land and attached building of approximately
187.33 mu has been handed over in 2020. As at 30 June 2023, the land compensation totaling
RMB 1,158,032,000.00 had 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 were equivalent to RMB
250,000,000.00. The transfer of above-mentioned land and attached buildings was
completed before 31 December 2020. As at 30 June 2023, the land compensation totalling
RMB 200,000,000.00 had not yet been recovered.
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 RMB 2,724,876,000.00. Among them, 320 mu of land and
attached buildings had been transferred by 31 December 2020, which were equivalent to
RMB 1,344,000,000.00; and the remaining 328.78 mu of land and attached buildings have
not been transferred. As at 30 June 2023, the land compensation totalling RMB
1,334,000,000.00 had not yet been recovered.
- 76 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term receivables - continued
(2) Provision for credit loss on long-term receivables
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
Opening balance 3,875,396.19 - - 3,875,396.19
Gross carrying amount of long-term receivables at 1 January 2023
-- Transfer to stage 2 - - - -
-- Transfer to stage 3 - - - -
-- Reversal to stage 2 - - - -
-- Reversal to stage 1 - - - -
Provision for the period 1,199,718.23 - - 1,199,718.23
Reversal for the period -844,035.83 - - -844,035.83
Transfer-out on derecognition of financial
- - - -
assets (including direct write-down)
Other changes - - - -
Closing balance 4,231,078.59 - - 4,231,078.59
(3) As at 30 June 2023, there are no long-term receivables derecognized due to the transfer of
financial assets.
(4) As at 30 June 2023, there are no assets and liabilities arising from the transfer or continuing
involvement of long-term receivables.
- 77 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 period
Effect of
Investment Reconciling translation of Balance of provision
Accounting Distribution of
Investees 31/12/2022 profit or loss items from other Other equity Provision for financial 30/6/2023 for impairment at
method Increase Decrease cash dividends or Others
under the equity comprehensive movements impairment statements the end of the period
profits declared
method income denominated in
foreign currencies
I. Joint ventures -
Euro-Asia Oceangate S.à r.l. Equity method 2,787,204,745.37 - - 52,892,617.53 - - - - - 100,331,656.35 2,940,429,019.25 -
Port of Newcastle Equity method 2,048,681,775.65 - - 16,104,684.73 -1,446,746.71 - - - - 47,953,982.50 2,111,293,696.17 -
Qingdao Qianwan United 1,569,283,425.52
Equity method 1,502,540,532.71 - - 65,204,791.15 - 1,538,101.66 - - - - -
Container Terminal Co., Ltd.
Yantai Port Group Laizhou Port 785,216,480.90
Equity method 794,153,389.74 - - 20,672,709.37 - -1,476,439.54 -28,133,178.67 - - - -
Co., Ltd.
Others Equity method 2,584,212,612.25 5,720,923.74 - 15,100,630.76 - 745,615.12 -100,454,790.83 - - 21,479,598.97 2,526,804,590.01 -
Subtotal 9,716,793,055.72 5,720,923.74 - 169,975,433.54 -1,446,746.71 807,277.24 -128,587,969.50 - - 169,765,237.82 9,933,027,211.85 -
II. Associates
SIPG Equity method 34,171,898,201.17 - - 2,053,880,439.55 -6,899,675.46 -51,177,797.53 -914,383,798.30 - - - 35,253,317,369.43 -
Nanshan Group Equity method 6,377,197,726.21 - - 113,853,548.75 68,503,427.36 88,958.34 - - - -3,151,081.70 6,556,492,578.96 -
Terminal Link SAS Equity method 6,395,609,168.37 - - 123,523,209.71 61,784,485.73 - -375,045,012.35 - - 217,267,732.58 6,423,139,584.04 -
Liaoning Port Equity method 4,021,162,878.74 - - 71,442,863.94 1,581,868.93 4,126,703.30 -47,754,255.87 - - -10,287,159.53 4,040,272,899.51 365,662,318.91
Shenzhen China Merchants
Qianhai Industrial Equity method 7,403,186,521.01 - - 21,312,200.00 - - - - - - 7,424,498,721.01 -
Development Co., Ltd.
Ningbo Zhoushan Equity method 17,974,630,545.05 - - 486,448,025.41 11,657,422.21 -22,722,867.87 -390,875,794.33 - - - 18,059,137,330.47 -
China Merchants Northeast Asia
Development Investment Equity method 1,017,010,205.71 - - 3,116,967.23 - - - - - - 1,020,127,172.94 -
Co., Ltd.
Antong Holdings Co., Ltd.
Equity method - 892,560,547.98 - 10,337,508.05 - - - - - - 902,898,056.03 -
("Antong Holdings") (Note)
Others (Note) Equity method 5,286,805,617.07 - - 41,404,322.02 -31,451,275.23 -104,425.86 -81,607,955.82 - - 148,312,961.70 5,363,359,243.88 2,381,331.36
Subtotal 82,647,500,863.33 892,560,547.98 - 2,925,319,084.66 105,176,253.54 -69,789,429.62 -1,809,666,816.67 - - 352,142,453.05 85,043,242,956.27 368,043,650.27
Total 92,364,293,919.05 898,281,471.72 - 3,095,294,518.20 103,729,506.83 -68,982,152.38 -1,938,254,786.17 - - 521,907,690.87 94,976,270,168.12 368,043,650.27
Note: As of 30 June 2023, the Company and its subsidiary China Ocean Shipping Tally Co., Ltd., Zhanjiang totally hold 6.83% equity in Antong
Holdings, and assigned one director to Antong Holdings. Therefore, the Company has significant influence over Antong Holdings and
reclassified its equity investment in Antong Holdings from other non-current assets to long-term equity investments in associates.
- 78 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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) Provisions for impairment losses of long-term equity investments
Decrease Effect of
translation of
Effect of financial
Item 31/12/2022 consolidation Increase statements 30/6/2023
Amount Reason
scope change denominated in
foreign
currencies
Liaoning Port 354,857,305.25 - - - - 10,805,013.66 365,662,318.91
HOA THUONG CORPORATION 2,310,965.02 - - - - 70,366.34 2,381,331.36
Total 357,168,270.27 - - - - 10,875,380.00 368,043,650.27
- 79 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Investees 30/6/2023 31/12/2022
China Ocean Shipping Agency (Shenzhen) Co., Ltd. 144,301,178.28 144,301,178.28
Others (Note) 9,955,002.00 27,644,096.74
Total 154,256,180.28 171,945,275.02
Note: The change for the period represents the transfer to held-for-sale assets. Details are set out
in Note (VIII) 9.
(2) Details of investments in non-trading equity instruments
Amounts transferred Reason for transfer
Dividends income to retained earnings from other
Accumulated Reason for designation as
Item recognized for from other comprehensive
gains FVTOCI
the period comprehensive income to retained
income earnings
The intention of holding
China Ocean Shipping
8,824,500.00 130,791,178.28 - is neither for sale nor N/A
Agency (Shenzhen) Co., Ltd.
profits in short-term
The intention of holding
Others - 927,502.00 - is neither for sale nor N/A
profits in short-term
Total 8,824,500.00 131,718,680.28 -
15. Other non-current financial assets
Item 30/6/2023 31/12/2022
Financial assets classified as at FVTPL 971,716,168.73 1,745,740,896.41
Including: Investments in equity instruments 971,716,168.73 1,745,740,896.41
Including: Qingdao Port International Co., Ltd. 943,850,357.04 767,553,775.66
Antong Holdings (Note) - 950,321,309.06
Others 27,865,811.69 27,865,811.69
Note: Refer to Note (VIII) 13 (1) for details.
- 80 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Investment properties
(1) Investment properties measured under the cost method
Item Land use rights Buildings Total
I. Cost
1. Balance at 1 January 2023 128,269,825.38 6,177,602,852.51 6,305,872,677.89
2. Increase for the period 8,388,170.37 13,446,587.56 21,834,757.93
(1) Purchase - 606,207.86 606,207.86
(2) Transfer from fixed assets - 12,840,379.70 12,840,379.70
(3) Transfer from intangible assets 8,388,170.37 - 8,388,170.37
3. Decrease in the current period - - -
(1) Disposal - - -
4. Balance at 30 June 2023 136,657,995.75 6,191,049,440.07 6,327,707,435.82
II. Accumulated depreciation and amortization
1. Balance at 1 January 2023 43,054,991.58 1,139,127,566.75 1,182,182,558.33
2. Increase for the period 3,228,723.73 92,658,424.77 95,887,148.50
(1) Provision for the period 1,285,600.37 89,888,070.89 91,173,671.26
(2) Transfer from fixed assets - 2,770,353.88 2,770,353.88
(3) Transfer from intangible assets 1,943,123.36 - 1,943,123.36
3. Decrease in the current period - - -
(1) Disposal - - -
4. Balance at 30 June 2023 46,283,715.31 1,231,785,991.52 1,278,069,706.83
III. Impairment provision
1. Balance at 1 January 2023 - - -
2. Increase for the period - - -
3. Decrease for the period - - -
4. Balance at 30 June 2023 - - -
IV. Book value
1. At 30 June 2023 90,374,280.44 4,959,263,448.55 5,049,637,728.99
2. At 1 January 2023 85,214,833.80 5,038,475,285.76 5,123,690,119.56
(2) Investment properties without ownership certificates
Book value at Book value at Reasons for certificate Expected time
Item
30/6/2023 31/12/2022 of title not completed of completion
Certificates of land use rights have not The certificate of title is
Buildings and land use rights 23,121,370.28 24,008,665.10
yet been obtained for some buildings underway
17. Fixed assets
17.1 Summary of fixed assets
Item 30/6/2023 31/12/2022
Fixed assets 29,368,062,834.14 32,033,317,707.66
Disposal of fixed assets 939,414.20 8,375.84
Total 29,369,002,248.34 32,033,326,083.50
- 81 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
(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. Cost
1. Balance at 1 January 2023 33,376,255,522.14 2,027,195,029.06 17,467,174,796.88 2,314,581,094.83 55,185,206,442.91
2. Increase for the period 166,267,635.05 - 188,906,526.61 2,510,111.49 357,684,273.15
(1) Purchase 19,556,058.19 - 56,789,316.27 1,802,166.51 78,147,540.97
(2) Transfer from development expenditure 6,180,387.49 - - - 6,180,387.49
(3) Transfer from construction in progress 140,531,189.37 - 132,117,210.34 707,944.98 273,356,344.69
3. Decrease for the period 2,752,315,156.03 255,679,754.27 1,684,785,634.24 28,698,058.50 4,721,478,603.04
(1) Disposal or retirement 31,550,712.90 10,765,927.51 28,732,766.99 22,588,577.82 93,637,985.22
(2) Transfer to investment properties - 12,840,379.70 - - 12,840,379.70
(3) Transfer to assets held for sale 2,720,764,443.13 232,073,447.06 1,656,052,867.25 6,109,480.68 4,615,000,238.12
4. Adjustments to the amount pre-carried
-13,175,135.93 - 83,817.50 153,503.23 -12,937,815.20
forward
5. Reclassification adjustment -59,046,162.00 54,686,102.51 4,360,059.49 - -
6. Effect of translation of
financial statements denominated in 326,075,212.68 5,523,017.17 217,639,577.40 26,589,788.07 575,827,595.32
foreign currencies
7. Balance at 30 June 2023 31,044,061,915.91 1,831,724,394.47 16,193,379,143.64 2,315,136,439.12 51,384,301,893.14
II. Accumulated depreciation
1. Balance at 1 January 2023 10,720,998,321.19 635,722,974.00 10,636,302,077.50 1,095,290,493.80 23,088,313,866.49
2. Increase for the period 499,620,447.03 40,220,195.44 425,210,913.41 54,324,524.44 1,019,376,080.32
(1) Provision 499,620,447.03 40,220,195.44 425,210,913.41 54,324,524.44 1,019,376,080.32
3. Decrease for the period 1,125,790,748.86 86,044,776.86 1,117,181,049.65 26,675,935.40 2,355,692,510.77
(1) Disposal or retirement 24,707,161.36 10,228,860.28 24,782,219.42 21,440,552.66 81,158,793.72
(2) Transfer to investment properties - 2,770,353.88 - - 2,770,353.88
(3) Transfer to assets held for sale 1,101,083,587.50 73,045,562.70 1,092,398,830.23 5,235,382.74 2,271,763,363.17
4. Reclassification adjustment -845,856.47 1,050,452.16 -204,595.69 - -
5. Effect of translation of
financial statements denominated in 74,573,669.64 1,449,687.99 115,937,277.13 8,706,119.44 200,666,754.20
foreign currencies
6. Balance at 30 June 2023 10,168,555,832.53 592,398,532.73 10,060,064,622.70 1,131,645,202.28 21,952,664,190.24
III. Impairment provision
1. Balance at 1 January 2023 57,546,986.63 5,985,164.85 42,717.28 - 63,574,868.76
2. Increase for the period - - - - -
3. Disposal or retirement - - - - -
4. Reclassification amount - - - - -
5. Other decreases - - - - -
6. Balance at 30 June 2023 57,546,986.63 5,985,164.85 42,717.28 - 63,574,868.76
IV. Book value
1. At 30 June 2023 20,817,959,096.75 1,233,340,696.89 6,133,271,803.66 1,183,491,236.84 29,368,062,834.14
2. At 1 January 2023 22,597,710,214.32 1,385,486,890.21 6,830,830,002.10 1,219,290,601.03 32,033,317,707.66
(2) As at 30 June 2023, the Group had no temporarily idle fixed assets.
(3) Fixed assets leased out under operating leases
Item 30/6/2023 31/12/2022
Buildings 197,515,868.27 196,480,507.61
Port and terminal facilities 30,919,502.66 33,260,157.31
Machinery and equipment, furniture and fixture and
2,307,599.86 7,920,761.45
other equipment
Total 230,742,970.79 237,661,426.37
- 82 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
(4) Fixed assets without ownership certificates
Book value at Book value at
Item Remarks
30/6/2023 31/12/2022
This is mainly because the land use
rights of the land have not been
Buildings, port
1,599,372,964.58 1,786,308,720.95 obtained yet and the approval
and terminal facilities
procedures have not yet been
completed for certain buildings.
(5) Details of fixed assets depreciated but still in use and temporarily idle at the end of the
period, and fixed assets disposed of and retired in the year:
Item Amount Remark
Cost of fixed assets fully depreciated but still in use
4,191,753,815.46
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 93,637,985.22
Net value of fixed assets disposed and retired 12,479,191.50
Profit or loss on disposal or retirement of fixed assets -6,724,988.70
(6) Details of the Group's fixed assets with restricted ownership as at 30 June 2023 are shown
in Note (VIII) 63.
17.3 Disposal of fixed assets
Item 30/6/2023 31/12/2022
Motor vehicles and cargo ships 862,574.35 -
Port and terminal facilities 43,926.96 -
Machinery and equipment, furniture and fixture and
29,934.91 8,375.84
other equipment
Buildings 2,977.98 -
Total 939,414.20 8,375.84
18. Construction in progress
(1) Summary of construction in progress
Item 30/6/2023 31/12/2022
Construction in progress 2,472,492,744.00 2,405,872,478.61
Materials for construction of fixed assets 4,415,483.17 7,971,929.03
Total 2,476,908,227.17 2,413,844,407.64
- 83 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Construction in progress - continued
(2) Details of construction in progress
30/6/2023 31/12/2022
Item Gross carrying Provision for Gross carrying Provision for
Book value Book value
amount impairment amount impairment
Port and terminal facilities 2,070,958,005.86 - 2,070,958,005.86 1,991,321,268.14 - 1,991,321,268.14
Infrastructure 201,735,167.90 - 201,735,167.90 201,444,537.67 - 201,444,537.67
Berths and yards 2,140,835.44 - 2,140,835.44 18,728,577.14 - 18,728,577.14
Others 197,658,734.80 - 197,658,734.80 194,378,095.66 - 194,378,095.66
Total 2,472,492,744.00 - 2,472,492,744.00 2,405,872,478.61 - 2,405,872,478.61
- 84 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Effect of
translation of Proportion of Interest
Accumulated Including:
financial accumulated capitalization
Increase for Transfer to Other decreases Construction amount of capitalized
Item Budget amount 31/12/2022 statements 30/6/2023 construction rate for the Capital source
the period fixed assets for the period denominated in progress (%) capitalized interest for the
investment in current period
interest period
foreign budget (%) (%)
currencies
Reconstruction project of HIPG Own funds and
2,817,485,265.02 817,365,084.37 - - - 28,776,658.92 846,141,743.29 57.68 57.68 - - -
container, oil terminal and tank area loans
General cargo terminal project at Own funds and
905,348,400.00 448,877,835.04 - - - - 448,877,835.04 49.58 49.58 44,364,372.49 - -
Donghai Island Port Area of Zhanjiang Port loans
Phase I project for the stuffing and destuffing
Own funds and
service area of Baoman Port Area, Zhanjiang 683,007,100.00 269,045,354.01 50,186,817.21 - - - 319,232,171.22 46.74 46.74 23,748,849.77 4,195,807.57 3.50 loans
Port
Phase I expansion project for the container 2,342,775,800.00 191,463,684.57 - - - - 191,463,684.57 8.17 8.17 953,620.60 - - Own funds and
terminal at Baoman Port Area, Zhanjiang Port loans
Phase II terminal project for working area of Own funds and
746,878,600.00 16,402,742.35 64,409,960.93 - - - 80,812,703.28 10.82 10.82 7,751,875.50 5,879,925.00 4.19
Liaogeshan Port Area of Foshan Port loans
Haida dry bulk cargo storage yard and supporting
facilities and land reclamation works at the back of 61,000,000.00 60,576,339.80 418,555.20 - - - 60,994,895.00 99.99 99.99 - - - Own funds
the liquid bulk berth
Zhanjiang Port bucket-wheel stacker reclaimer Own funds and
74,800,000.00 51,551,526.93 502,499.73 - - - 52,054,026.66 69.59 69.59 2,337,134.92 502,499.73 3.50
installation project loans
TCP138 kV gas insulated substation project 46,894,702.14 33,666,456.43 7,711,139.44 1,578,530.06 - 1,072,840.79 40,871,906.60 90.52 90.52 - - - Own funds
Transtaineres 31 A 41 191,841,963.30 16,222,603.85 19,353,467.42 - - 1,376,978.25 36,953,049.52 19.26 19.26 - - - Own funds
Dachan Bay Phase II 918,521,317.23 24,872,917.72 10,659,821.88 - - - 35,532,739.60 3.87 3.87 - - - Own funds
Total 8,788,553,147.69 1,930,044,545.07 153,242,261.81 1,578,530.06 - 31,226,477.96 2,112,934,754.78 79,155,853.28 10,578,232.30
(4) Materials for construction of fixed assets
30/6/2023 31/12/2022
Item Gross carrying Provision for Gross carrying Provision for
Book value Book value
amount impairment amount impairment
Materials for construction of fixed assets 4,415,483.17 - 4,415,483.17 7,971,929.03 - 7,971,929.03
- 85 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 cargo ships and Total
facilities
fixture and other others
equipment
I. Cost
1. Balance at 1 January 2023 7,414,725,804.49 174,746,285.16 361,404,132.03 2,833,468,093.15 15,456,422.12 10,799,800,736.95
2. Increase for the period - 28,068,531.69 - 1,196,619.58 5,119,357.99 34,384,509.26
(1) Purchase - 28,068,531.69 - 1,196,619.58 5,119,357.99 34,384,509.26
3. Decrease for the period 4,045,800.11 20,012,413.69 - - 7,620,740.24 31,678,954.04
(1) Termination of lease 1,079,443.59 20,012,413.69 - - 7,620,740.24 28,712,597.52
(2) Other decreases 2,966,356.52 - - - - 2,966,356.52
4. Effect of translation of
financial statements
216,190,714.32 4,763,460.67 779,975.10 99,052,642.18 - 320,786,792.27
denominated in
foreign currencies
5. Balance at 30 June 2023 7,626,870,718.70 187,565,863.83 362,184,107.13 2,933,717,354.91 12,955,039.87 11,123,293,084.44
II. Accumulated depreciation
1. Balance at 1 January 2023 940,705,350.30 59,749,857.79 119,454,049.67 326,945,093.98 10,304,162.88 1,457,158,514.62
2. Increase for the period 128,935,618.09 10,470,122.25 10,772,259.73 21,105,466.02 2,116,442.71 173,399,908.80
(1) Provision 128,935,618.09 10,470,122.25 10,772,259.73 21,105,466.02 2,116,442.71 173,399,908.80
3. Decrease for the period 434,260.05 20,012,425.31 - - 7,620,740.24 28,067,425.60
(1) Termination of lease 434,260.05 20,012,425.31 - - 7,620,740.24 28,067,425.60
4. Effect of translation of
financial statements
denominated in 23,078,225.25 1,078,828.47 759,236.09 11,967,558.35 - 36,883,848.16
foreign currencies
5. Balance at 30 June 2023 1,092,284,933.59 51,286,383.20 130,985,545.49 360,018,118.35 4,799,865.35 1,639,374,845.98
III. Impairment provision
1. Balance at 1 January 2023 - - - - - -
2. Increase for the period - - - - - -
3. Decrease for the period - - - - - -
4. Balance at 30 June 2023 - - - - - -
IV. Book value
1. At 30 June 2023 6,534,585,785.11 136,279,480.63 231,198,561.64 2,573,699,236.56 8,155,174.52 9,483,918,238.46
2. At 1 January 2023 6,474,020,454.19 114,996,427.37 241,950,082.36 2,506,522,999.17 5,152,259.24 9,342,642,222.33
(2) Amount recognized in profit or loss
Category Current period
Depreciation expenses of right-of-use assets (Note 1) 173,399,908.80
Interest expenses on lease liabilities (Note 2) 31,418,935.49
Expenses for short-term leases 27,727,081.54
Expenses for leases of low value assets -
Variable lease payments not included in the measurement of lease liabilities (Note 3) -
Revenue from sublease of right-of-use assets 5,446,966.10
Note 1:No depreciation expenses of right-of-use assets are capitalized in the period from 1 January
to 30 June 2023.
Note 2:No interest expenses of lease liabilities are capitalized in the period from 1 January to 30
June 2023.
Note 3:No variable lease payments are included in the measurement of lease liabilities in the period
from 1 January to 30 June 2023.
- 86 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 2023
amount to RMB 185,790,438.60.
(4) Lease assets of the Group with the lease term as follows:
Category Lease term
Port, terminal facilities and land 1-99 years
Buildings 1-99 years
Machinery and equipment, furniture and fixture and other equipment 1-6 years
Motor vehicles and cargo ships 1-5 years
Others 1-7 years
20. Intangible assets
(1) Details of intangible assets
Terminal
Item Land use rights Others Total
management rights
I. Cost
1. Balance at 1 January 2023 15,314,517,408.67 9,033,916,504.04 1,500,585,297.68 25,849,019,210.39
2. Increase for the year 4,707,118.86 43,719,613.58 40,889,212.89 89,315,945.33
(1) Purchase 4,707,118.86 43,719,613.58 21,764,674.87 70,191,407.31
(2) Transfer from construction in progress - - 19,124,538.02 19,124,538.02
3. Decrease for the period 1,273,356,290.72 - 58,256,537.20 1,331,612,827.92
(1) Disposal - - 2,263,495.21 2,263,495.21
(2) Transfer to investment properties 8,388,170.37 - - 8,388,170.37
(3) Transfer to held-for-sale assets 1,242,052,238.36 - 55,993,041.99 1,298,045,280.35
(4) Other decreases 22,915,881.99 - - 22,915,881.99
4. Effect of translation of financial statements
6,817,634.87 736,700,068.21 68,483,026.94 812,000,730.02
denominated in foreign currencies
5. Balance at 30 June 2023 14,052,685,871.68 9,814,336,185.83 1,551,701,000.31 25,418,723,057.82
II. Accumulated depreciation
1. Balance at 1 January 2023 4,096,452,545.66 1,897,700,710.79 562,263,716.23 6,556,416,972.68
2. Increase for the year 179,624,677.82 137,166,812.77 40,582,392.29 357,373,882.88
(1) Provision 179,624,677.82 137,166,812.77 40,582,392.29 357,373,882.88
3. Decrease for the period 114,864,953.22 - 35,839,154.48 150,704,107.70
(1) Disposal - - 1,268.38 1,268.38
(2) Transfer to investment properties 1,943,123.36 - - 1,943,123.36
(3) Transfer to held-for-sale assets 112,921,829.86 - 35,837,886.10 148,759,715.96
4. Effect of translation of financial statements
3,099,417.95 165,696,645.72 25,099,294.31 193,895,357.98
denominated in foreign currencies
5. Balance at 30 June 2023 4,164,311,688.21 2,200,564,169.28 592,106,248.35 6,956,982,105.84
III. Impairment provision
1. Balance at 1 January 2023 15,537,122.10 - - 15,537,122.10
2. Increase for the period - - - -
3. Decrease for the period - - - -
4. Balance at 30 June 2023 15,537,122.10 - - 15,537,122.10
IV. Book value
1. At 30 June 2023 9,872,837,061.37 7,613,772,016.55 959,594,751.96 18,446,203,829.88
2. At 1 January 2023 11,202,527,740.91 7,136,215,793.25 938,321,581.45 19,277,065,115.61
- 87 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 as at 30 June 2023:
Book value Book value
Item
at 30/6/2023 at 31/12/2022
Land use rights (Note) 2,447,228,773.99 2,511,195,386.58
Note: At 30 June 2023, 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 815,234.87 m, and the land use rights for Dachan
Bay Port area Phase II obtained by Ansujie Terminals Warehousing Service (Shenzhen) Co.,
Ltd. ("ASJ"), of which the costs are RMB 1,235,852,249.87 and RMB 918,521,317.23,
respectively.
The 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.
- 88 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Development expenditure
Decrease for the period Effect of
translation of
financial
Increase for Transfer to
Item 31/12/2022 Transfer to Transfer to Transfer to statements 30/6/2023
the period construction in
intangible assets fixed assets profit or loss denominated in
progress
foreign
currencies
Eport 3.0 - 21,219,772.61 - - - - - 21,219,772.61
The Greater Bay Area combined port
- 10,773,326.59 - - - 10,773,326.59 - -
program
Intelligent management platform system - 6,810,988.87 - - - 6,810,988.87 - -
R&D of intelligent gate system - 4,841,003.43 - - - 4,841,003.43 - -
RMG automation of the yard operation - 3,227,335.61 - - - 3,227,335.61 - -
Intelligent terminal program - 3,043,978.94 - - - 3,043,978.94 - -
"Hongzhang" Super Computing Cluster and
6,219,670.14 36,856.00 - - - - - 6,256,526.14
Port AI model construction system project
Others 11,192,526.02 96,701,343.25 - - 6,180,387.49 92,344,677.28 - 9,368,804.50
Total 17,412,196.16 146,654,605.30 - - 6,180,387.49 121,041,310.72 - 36,845,103.25
- 89 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Goodwill
(1) Cost of goodwill
Effect of
translation of
financial
Investees 31/12/2022 Increase Decrease statements 30/6/2023
denominated in
foreign
currencies
TCP 2,716,399,522.38 - - 344,564,533.48 3,060,964,055.86
Mega Shekou Container Terminals Limited 1,815,509,322.42 - - - 1,815,509,322.42
China Merchants Port Holdings 993,992,000.00 - - - 993,992,000.00
Shantou Port 552,317,736.65 - - - 552,317,736.65
Zhanjiang Port 418,345,307.68 - - - 418,345,307.68
Shenzhen Mawan Project 408,773,001.00 - - - 408,773,001.00
Ningbo Daxie (Note) 188,497,194.41 - 188,497,194.41 - -
Others 288,255,850.88 - - - 288,255,850.88
Total 7,382,089,935.42 - 188,497,194.41 344,564,533.48 7,538,157,274.49
Note: The reasons for decrease in the period are detailed in Note (VIII) 9.
(2) Provision for impairment of goodwill
Effect of
translation of
financial
Investees 31/12/2022 Increase Decrease statements 30/6/2023
denominated in
foreign
currencies
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, the way of management 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 2023, 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.; CM Port; 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").
- 90 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 26 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 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
The items of long-term prepaid expenses are as follows:
Increase for Amortization Reason for
Item 31/12/2022 Other decreases 30/6/2023
the period for period other decreases
Tonggu channel widening project
455,446,696.75 - 7,256,445.77 - 448,190,250.98
(Note 1)
Reclassification to
Public channel widening project
249,437,402.87 - 4,959,514.32 1,538,430.04 242,939,458.51 dredging
in west port area (Note 2)
engineering
Dredging project 69,760,419.37 10,912,085.19 7,650,248.96 - 73,022,255.60
Relocation project of Nanhai
37,554,111.50 - 553,684.20 - 37,000,427.30
Rescue Bureau
Leasehold improvement 20,631,173.37 2,325,631.13 982,741.14 - 21,974,063.36
Transfer to held-
Others 153,527,101.04 40,924,050.07 22,150,670.48 8,932,387.99 163,368,092.64
for-sale assets
Total 986,356,904.90 54,161,766.39 43,553,304.87 10,470,818.03 986,494,548.39
- 91 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 1: This represents 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 and 40 years using the straight-line method since the completion
of the two widening projects in 2008 and 2019, respectively.
Note 2: This represents the Group's actual expenses on the Public Channel Widening Project in
Shenzhen West Port Area, 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
30/6/2023 31/12/2022 (restated)
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Unrealized profit 753,812,553.51 184,069,224.61 756,772,558.79 184,729,651.97
Terminal management rights of
Colombo International Container 727,370,658.74 218,211,197.62 702,633,317.13 210,789,995.14
Terminals Limited ("CICT")
Leasing business 615,522,900.67 171,780,408.15 582,736,512.28 164,262,934.19
Provision for credit loss 198,117,679.78 38,741,993.22 190,727,520.03 35,544,695.31
Accrued and unpaid wages 147,153,190.69 32,325,130.15 161,026,788.29 35,802,355.38
Depreciation of fixed assets 140,159,191.44 35,039,797.86 154,724,225.49 35,753,675.92
Deductible losses 128,172,599.24 22,996,737.33 182,211,924.34 40,193,891.36
Provisions 37,446,005.96 12,731,642.03 35,365,156.43 12,024,153.19
Deferred income 37,105,912.07 8,860,569.11 36,723,054.56 8,709,144.22
Amortization of computer software 9,315,400.29 2,328,850.07 9,291,532.77 2,322,883.19
Provision for impairment of assets 5,507,073.15 1,376,768.29 5,507,073.16 1,376,768.29
Organization costs 3,498,150.00 874,537.50 3,498,150.00 874,537.50
Others 48,710,363.43 7,223,105.47 57,124,137.75 15,595,505.07
Total 2,851,891,678.97 736,559,961.41 2,878,341,951.02 747,980,190.73
- 92 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
24. Deferred income tax - continued
(2) Deferred tax liabilities without offsetting
30/6/2023 31/12/2022 (restated)
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Accrued dividend income tax 38,640,966,994.57 2,614,191,523.81 37,565,601,815.13 2,568,624,605.88
Fair value adjustment of assets
6,336,801,036.16 1,396,223,379.41 7,755,954,464.86 1,762,190,010.27
acquired by business combination
Depreciation of fixed assets 980,326,962.11 269,370,246.17 1,119,997,714.31 280,579,814.18
Leasing business 814,739,123.95 232,167,612.81 783,000,219.10 224,483,346.07
Changes in fair value of other
501,389,851.26 136,332,154.29 330,012,225.76 82,503,056.44
non-current financial assets
Terminal management rights of CICT 313,138,100.62 93,941,430.19 302,488,503.92 90,746,551.18
Changes in fair value of investments in
130,791,178.28 32,697,794.57 130,791,178.28 32,697,794.57
other equity instruments
Others 1,164,498,193.47 127,470,828.25 1,169,095,183.52 126,676,026.52
Total 48,882,651,440.42 4,902,394,969.50 49,156,941,304.88 5,168,501,205.11
(3) Deferred tax assets or liabilities presented at the net amount after offsetting
Balance of deferred Offset amount of Balance of deferred tax
Offset amount of
tax assets or liabilities deferred tax assets and assets or liabilities after
Item deferred tax assets and
after offsetting at liabilities at 31/12/2022 offsetting at 31/12/2022
liabilities at 30/6/2023
30/6/2023 (restated) (restated)
Deferred tax assets -324,332,741.27 412,227,220.14 -313,481,369.78 434,498,820.95
Deferred tax liabilities -324,332,741.27 4,578,062,228.23 -313,481,369.78 4,855,019,835.33
(4) Deductible temporary differences and deductible losses for which deferred tax assets are not
recognized
Item 30/6/2023 31/12/2022
Deductible temporary differences 877,051,801.50 930,204,772.41
Deductible losses 2,025,767,945.94 2,112,659,943.00
Total 2,902,819,747.44 3,042,864,715.41
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 are recognized.
(5) Deductible losses for unrecognized deferred tax assets will be expired in the following years:
Year 30/6/2023 31/12/2022
2023 320,313,610.88 515,101,493.80
2024 370,378,814.60 488,358,232.03
2025 314,003,118.58 375,208,491.05
2026 105,721,728.09 112,756,494.15
2027 630,699,970.36 600,178,442.73
2028 262,413,482.74 -
Deductible losses due after 2029 22,237,220.69 21,056,789.24
Total 2,025,767,945.94 2,112,659,943.00
- 93 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
25. Other non-current assets
Item 30/6/2023 31/12/2022
Advances for channel project (Note) 1,001,532,979.67 989,752,762.75
Prepayments for fixed assets 167,943,529.78 117,094,834.14
Prepayments for terminal franchise 29,876,385.37 27,493,116.21
Others 5,484,540.20 52,448,665.69
Total 1,204,837,435.02 1,186,789,378.79
Less: Impairment provision - -
Net book value 1,204,837,435.02 1,186,789,378.79
Note: This represents 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 for 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 30/6/2023 31/12/2022
Credit loan 4,925,403,277.82 7,149,322,782.85
Pledged loan (Note 1) 25,024,305.54 15,015,583.33
Guaranteed loan (Note 2) 30,024,583.33 -
Total 4,980,452,166.69 7,164,338,366.18
Note 1: The Company's subsidiary Guangdong Yide Port Co., Ltd. ("Yide Port") obtained short-
term borrowings of RMB 15,014,166.66 (31 December 2022: RMB 15,015,583.33) from
China Merchants Bank Co., Ltd. by pledging its fixed assets. The Company's subsidiary
CM Port (Zhoushan) RoRo Wharf Co., Ltd. ("Zhoushan RoRo") obtained short-term
borrowings of RMB 10,010,138.88 from China Merchants Bank Co., Ltd. by pledging its
land use rights and fixed assets.
Note 2: This loan was guaranteed by the Company's subsidiary Guangdong Zhanjiang Port
Logistics Co., Ltd ("Zhanjiang Port Logistics").
(2) At 30 June 2023, the Group has no outstanding short-term borrowings that were overdue.
27. Notes payable
Category 30/6/2023 31/12/2022
Bank acceptance 39,276,000.00 -
Total 39,276,000.00 -
- 94 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28. Accounts payable
Item 30/6/2023 31/12/2022
Service fee payable 190,032,871.47 299,350,272.24
Construction cost payable 84,066,275.41 110,687,325.42
Payables on materials 61,847,740.98 132,460,163.17
Payables on equipment 37,363,790.52 87,445,302.02
Rent payable 9,164,641.30 8,304,019.32
Others 148,743,679.94 172,902,315.49
Total 531,218,999.62 811,149,397.66
(1) Aging of accounts payable:
30/6/2023 31/12/2022
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year (inclusive) 448,646,072.53 84.46 710,976,970.28 87.65
1 - 2 years (inclusive) 25,833,900.12 4.86 47,038,049.65 5.80
2 - 3 years (inclusive) 51,536,035.13 9.70 26,667,189.69 3.29
Over 3 years 5,202,991.84 0.98 26,467,188.04 3.26
Total 531,218,999.62 100.00 811,149,397.66 100.00
(2) Significant accounts payable aged more than one year
Item 30/6/2023 Aging Reason for outstanding
To be paid upon confirmation
Quanzhou Antong Logistics Co., Ltd. 16,948,161.45 2 - 3 years
by both parties
29. Receipts in advance
Item 30/6/2023 31/12/2022
Land transfer fee received in advance 20,000,000.00 -
Rent received in advance 10,098,709.48 6,205,443.31
Management fee received in advance 2,652,350.02 -
Others 9,507,534.31 3,681,088.28
Total 42,258,593.81 9,886,531.59
(1) Aging of receipts in advance
30/6/2023 31/12/2022
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year (inclusive) 42,258,593.81 100.00 9,884,079.59 99.98
1 - 2 years (inclusive) - - - -
2 - 3 years (inclusive) - - - -
Over 3 years - - 2,452.00 0.02
Total 42,258,593.81 100.00 9,886,531.59 100.00
(2) There are no significant receipts in advance aged more than one year as at 30 June 2023.
- 95 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
30. Contract liabilities
(1) Presentation of contract liabilities
Item 30/6/2023 31/12/2022
Service fee received in advance 100,041,676.37 59,729,035.75
Port charges received in advance 54,819,723.10 55,045,635.27
Warehousing fee received in advance 5,354,937.00 3,048,588.90
Others 31,562,776.59 24,076,291.11
Total 191,779,113.06 141,899,551.03
(2) For the period from 1 January to 30 June 2023, there were no significant changes in the
carrying amount of contract liabilities.
(3) There are no significant contract liabilities aged more than one year at 30 June 2023.
(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 book value of contract
liabilities
An amount of RMB 79,764,653.59 included in the book value of contract liabilities at the
beginning of the period has been recognized as revenue in the current period, including
contract liabilities arising from settled but unfinished construction resulting from the
contract of receipt of port charges in advance amounting to RMB 50,007,516.99, contract
liabilities arising from settled but unfinished construction resulting from the contract of
receipt of service fee in advance amounting to RMB 18,149,183.51, contract liabilities
arising from settled but unfinished construction resulting from the contract of receipt of
warehousing fee in advance amounting to RMB 2,595,963.53 as well as contract liabilities
arising from settled but unfinished construction resulting from other contracts amounting to
RMB 9,011,989.56.
- 96 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Employee benefits payable
(1) Presentation of employee benefits payable
Increase for Decrease for
Item 31/12/2022 30/6/2023
the period the period
1. Short-term benefits 921,533,425.99 1,591,769,249.50 1,767,176,376.38 746,126,299.11
2. Post-employment benefits
13,383,514.93 178,335,264.80 181,832,454.28 9,886,325.45
- defined contribution plan
3. Termination benefits 2,423,282.78 2,438,601.81 4,861,884.59 -
4. Other benefits due within
- 1,676,396.07 1,676,396.07 -
one year
5. Others -505,505.57 856,597.71 1,024,103.34 -673,011.20
Total 936,834,718.13 1,775,076,109.89 1,956,571,214.66 755,339,613.36
(2) Presentation of short-term benefits
Increase for Decrease for
Item 31/12/2022 30/6/2023
the period the period
1. Wages and salaries, bonuses,
897,442,262.83 1,294,623,152.06 1,472,900,805.38 719,164,609.51
allowances and subsidies
2. Staff welfare - 68,343,118.38 65,056,692.94 3,286,425.44
3. Social security contributions 10,545,539.44 95,162,511.21 96,039,256.25 9,668,794.40
Including: Medical insurance 8,631,543.96 81,077,005.05 82,369,868.54 7,338,680.47
Work injury insurance 53,916.77 8,223,902.44 8,276,494.06 1,325.15
Others 1,860,078.71 5,861,603.72 5,392,893.65 2,328,788.78
4. Housing funds -95,060.47 100,325,318.42 100,142,141.26 88,116.69
5. Union running costs and
13,642,129.96 25,673,626.92 25,940,647.51 13,375,109.37
employee education costs
6. Other short-term benefits -1,445.77 7,641,522.51 7,096,833.04 543,243.70
Total 921,533,425.99 1,591,769,249.50 1,767,176,376.38 746,126,299.11
(3) Defined benefit plans
Increase for Decrease for
Item 31/12/2022 30/6/2023
the period the period
1. Basic pension 9,761,086.14 132,436,195.05 134,210,130.62 7,987,150.57
2. Unemployment insurance 49,026.91 2,680,913.92 2,728,520.16 1,420.67
3. Enterprise annuity contribution 3,573,401.88 43,218,155.83 44,893,803.50 1,897,754.21
Total 13,383,514.93 178,335,264.80 181,832,454.28 9,886,325.45
The Company and its domestic subsidiaries participate in the pension insurance and unemployme nt
insurance plans established by government institutions as required. According to such plans, the
Group contributes to the plans at the ratio set by local government. The Group has established
annuity system and pays annuity according to the annuity systems of the Company and its domestic
subsidiaries. In addition to the above-mentioned contributions, the Group undertakes no further
payment obligations. The relevant expenditures are included in the current profit and loss or the
cost of related assets when incurred.
- 97 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
32. Taxes payable
Item 30/6/2023 31/12/2022
Enterprise income tax 882,542,845.77 804,846,345.79
VAT 26,587,696.43 30,032,002.80
Others 114,236,420.22 83,054,820.50
Total 1,023,366,962.42 917,933,169.09
33. Other payables
(1) Summary of other payables
Item 30/6/2023 31/12/2022
Dividends payable 1,453,247,032.09 92,374,921.29
Other payables 1,712,152,062.25 1,663,510,336.97
Total 3,165,399,094.34 1,755,885,258.26
(2) Dividends payable
Item 30/6/2023 31/12/2022
Ordinary share dividends 1,453,247,032.09 92,374,921.29
Including: External parties 683,157,956.17 -
China Merchants Union （BVI） Limited 495,615,718.43 -
Sinomart Kts Development Limited 124,474,409.72 -
China Merchants Zhangzhou Development Zone
40,000,000.00 20,000,000.00
Co., Ltd. (Note)
Zhanjiang Infrastructure Construction Investment Group
34,598,645.00 41,400,234.06
Co., Ltd.
Dalian Port Container Development Co., Ltd.
27,160,696.61 14,000,000.00
("Dalian Port Container") (Note)
China Merchants Investment Development
13,036,489.20 -
(Hong Kong) Limited
Dalian City Investment Holding Group Co., Ltd. 11,648,655.69 3,527,787.23
Dalian Port Jifa Logistics Co., Ltd. ("Jifa Logistics") 11,575,104.42 3,000,000.00
Yingkou Port Group Co., Ltd. ("Yingkou Port Group") 5,372,456.78 -
Qingdao Qingbao Investment Holding Co., Ltd. 4,950,000.07 -
Orienture Holdings Company Limited 1,656,900.00 -
Sri Lanka Ports Authority - 10,446,900.00
Note: As at 30 June 2023, the significant balance of dividends payable aged over one year includes
dividends of RMB 20,000,000.00 due to China Merchants Zhangzhou Development Zone
Co., Ltd. and dividends of RMB 11,000,000.00 due to Dalian Port Container, representing
the dividends not yet received by the investors.
- 98 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
(a) Presentation of other payables by nature
Item 30/6/2023 31/12/2022
Construction cost and quality warranty 595,613,589.84 643,816,817.51
Deposits 238,328,795.96 221,628,920.81
Customer discount (Note) 161,226,173.64 164,622,341.62
Accrued expenses 158,156,770.10 190,048,988.98
Investment by minority shareholders 107,188,200.00 -
Port construction and security fee 30,690,945.02 36,697,168.04
Balance of land use rights transfer - 11,295,700.00
Others 420,947,587.69 395,400,400.01
Total 1,712,152,062.25 1,663,510,336.97
Note: Refer to Note (VIII) 51 (3) for details.
(b) Significant other payables with aging over 1 year
Name of entities Amount owed Aging Reason for being outstanding
Bureau of Communications of Shenzhen
Within 1 year, 2 - 3 years and
Municipality (Ports Administration of 79,639,296.08 To be paid upon confirmation by both parties
over 3 years
Shenzhen Municipality)
CCCC Water Transportation Consultants Within 1 year, 1 - 2 years and
58,666,012.94 Contractual criteria for settlement not yet satisfied
Co., Ltd. over 3 years
Shanghai Zhenhua Heavy Industries Co., Ltd. 38,019,307.07 Within 1 year and over 3 years Contractual criteria for settlement not yet satisfied
Shantou Transportation Bureau 31,358,355.47 Over 3 years To be paid upon confirmation by both parties
CCCC Fourth Navigation Engineering Bureau Within 1 year, 1 - 2 years and
28,041,859.09 To be paid upon confirmation by both parties
Co., Ltd. 2 - 3 years
Guangdong Jiaye Reserve Logistics Co., Ltd. 25,000,000.00 Over 3 years To be paid upon confirmation by both parties
Guangdong Province Planning & Design
17,712,952.93 Within 1 year, 1 - 2 years To be paid upon confirmation by both parties
Institute for Water Transportation Co., Ltd.
Dalian Huarui Heavy Industry Group Co., Ltd. 12,163,435.90 2 - 3 years To be paid upon confirmation by both parties
China First Metallurgical Group Co., Ltd. 10,133,596.36 2 - 3 years Contractual criteria for settlement not yet satisfied
Wuxi Huadong Heavy Machinery Co., Ltd. 10,090,410.68 1 - 2 years Contractual criteria for settlement not yet satisfied
China Merchants Real Estate (Shenzhen)
10,079,369.00 Over 3 years To be paid upon confirmation by both parties
Co., Ltd.
Guangdong New Groton Group Co., Ltd.
(Formerly known as "Guangdong Hengtai 10,000,000.00 Over 3 years Contractual criteria for settlement not yet satisfied
Guotong Industrial Co., Ltd.")
Shantou Municipal Finance Bureau 10,000,000.00 Over 3 years To be paid upon confirmation by both parties
CCCC Guangzhou Dredging Co., Ltd. 9,473,367.45 Within 1 year and 2 - 3 years Contractual criteria for settlement not yet satisfied
1 - 2 years, 2 - 3 years and
Shenzhen Penglilong Industrial Co., Ltd. 8,158,000.00 To be paid upon confirmation by both parties
over 3 years
Shanxi Nonferrous Construction Co., Ltd. 7,880,134.55 1 - 2 years and 2 - 3 years To be paid upon confirmation by both parties
Suhua Construction Group Co. Ltd. 7,423,728.26 1 - 2 years Contractual criteria for settlement not yet satisfied
CCCC Third Harbor Engineering Co., Ltd. 7,389,710.80 1 - 2 years and over 3 years Contractual criteria for settlement not yet satisfied
Shenzhen Aohua Zhongmao Industry Co., 1 - 2 years, 2 - 3 years and
6,158,000.00 To be paid upon confirmation by both parties
Ltd. over 3 years
Maersk Supply Chain Management Within 1 year, 1 - 2 years, 2 -
5,133,642.80 To be paid upon confirmation by both parties
(Guangdong) Co. Ltd. 3 years and over 3 years
Total 392,521,179.38
- 99 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Held-for-sale liabilities
Book value at Fair value at Estimated costs
Item Disposal date
30/6/2023 30/6/2023 of disposal
Held-for-sale disposal group (Note) 681,983,479.70 681,983,479.70 1,762,730.00 8 August 2023
Book value 681,983,479.70
Note: Details are set out in Note (VIII) 9.
35. Non-current liabilities due within one year
Item 30/6/2023 31/12/2022
Long-term borrowings due within one year (Note (VIII) 37) 1,814,982,837.14 2,313,191,859.96
Including: Credit borrowings 1,305,069,818.27 1,368,934,869.99
Guaranteed borrowings 224,663,564.89 219,564,028.82
Mortgage and pledged borrowings 285,249,453.98 724,692,961.15
Bonds payable due within one year (Note (VIII) 38) 10,977,033,748.51 8,668,651,537.27
Lease liabilities due within one year (Note (VIII) 39) 271,617,997.07 306,942,164.80
Long-term payables due within one year (Note (VIII) 40) 170,057,437.21 155,665,725.85
Long-term employee benefits payable due within one year
54,069,377.57 54,414,877.57
(Note (VIII) 41)
Other non-current liabilities due within one year (Note (VIII) 44) 134,713,435.00 142,357,523.50
Total 13,422,474,832.50 11,641,223,688.95
36. Other current liabilities
Item 30/6/2023 31/12/2022
Short-term bonds payable 4,017,249,315.07 3,017,713,424.64
Short-term finance lease payments (Note) 359,485,676.59 -
Accrued professional agency fee 120,246,462.98 124,799,040.22
Others 3,249,859.12 18,635,061.10
Total 4,500,231,313.76 3,161,147,525.96
Note: The Company's subsidiary CICT signed the sale and leaseback finance lease contract with
Ocean Driller III Limited on 6 April 2023.
- 100 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Other current liabilities - continued
Changes in short-term bonds payable:
Amount issued in Interest accrued Discount or Repayment in
Name of bond Face value Date of issue Term of the bond Amount of issue 31/12/2022 the current based on par premium the current 30/6/2023
period value amortization period
2.35% RM B 2 billion Super & Short-term
Commercial Paper 2,000,000,000.00 2023-3-1 180 days 2,000,000,000.00 - 2,000,000,000.00 15,452,054.80 - - 2,015,452,054.80
2.05% RM B 2 billion Super & Short-term
2,000,000,000.00 2023-6-14 180 days 2,000,000,000.00 - 2,000,000,000.00 1,797,260.27 - - 2,001,797,260.27
Commercial Paper
1.93% RM B 2 billion Super & Short-term
2,000,000,000.00 2022-9-8 180 days 2,000,000,000.00 2,012,055,890.40 - 6,979,725.60 - 2,019,035,616.00 -
Commercial Paper
1.75% RM B 1 billion Super & Short-term
1,000,000,000.00 2022-9-1 270 days 1,000,000,000.00 1,005,657,534.24 - 7,287,671.24 - 1,012,945,205.48 -
Commercial Paper
Total 7,000,000,000.00 7,000,000,000.00 3,017,713,424.64 4,000,000,000.00 31,516,711.91 - 3,031,980,821.48 4,017,249,315.07
- 101 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term borrowings
Range of period-
Item 30/6/2023 31/12/2022
end interest rate
Credit borrowings 15,285,297,084.99 12,319,883,867.05 1.20%-4.20%
Guaranteed borrowings (Note 1) 912,663,564.89 1,020,670,858.02 1.20%-12.78%
Mortgage and pledged borrowings (Note 2) 1,700,628,445.86 1,362,736,312.74 3.20%-6.18%
Total 17,898,589,095.74 14,703,291,037.81
Less: Long-term borrowings due within one year 1,814,982,837.14 2,313,191,859.96
Including: Credit borrowings 1,305,069,818.27 1,368,934,869.99
Guaranteed borrowings 224,663,564.89 219,564,028.82
Mortgage and pledged borrowings 285,249,453.98 724,692,961.15
Long-term borrowings due after one year 16,083,606,258.60 12,390,099,177.85
Note 1:The borrowings are guaranteed by Magang Godown & Wharf, China Merchants Port
(Shenzhen) Co., Ltd., China Merchants Port Holdings Company Limited and Zhanjiang Port
Logistics.
Note 2:At 30 June 2023, the Group obtained long-term borrowings of RMB 1,700,628,445.86 (31
December 2022: RMB 1,362,736,312.74) by pledging all its equity in Thesar Maritime
Limited ("TML"), the land use rights, fixed assets and construction in progress held by Yide
Port, and the land use rights of Shenzhen Haixing Harbor Development Co., Ltd.
("Shenzhen Haixing") as well as the land use rights of Guangdong Shunkong Port
Development and Construction Co., Ltd. ("Shunkong Port").
Details of mortgage and pledged borrowings are as follows:
Company name 30/6/2023 31/12/2022 Mortgages and pledges
Bank of China Qianhai Shekou Branch 1,294,970,617.81 280,013,198.30 Land use rights of Shenzhen Haixing
Land use rights, fixed assets and
China Construction Bank Shunde Branch 221,448,905.92 236,479,995.32
construction in progress of Yide Port
International Finance Corporation 65,706,976.53 123,849,460.76
African Development Bank 30,170,374.80 56,864,864.36
Nederlandse Financierings-Maatschappij voor
24,860,911.78 46,859,749.65
Ontwikkelingslanden N.V.
The Opec Fund For International Development 21,296,984.62 40,139,904.25 The Group's entire equity in TML
Societe de Promotion et de Participation pour
21,311,742.67 40,170,265.09
la Cooperation Economique S.A.
Deutsche Investitions-und
17,747,210.06 33,449,920.21
Entwicklungsgesellschaft MBH
Bank of Communications Guangdong Branch 3,114,721.67 - Land use rights of Shunkong Port
China Development Bank Corporation - 494,997,308.55 The Group's entire equity in CICT
Land use rights and fixed assets of
China Mingsheng Bank Zhoushan Branch - 9,911,646.25
Zhoushan RoRo
Total 1,700,628,445.86 1,362,736,312.74
Note: See Note (VIII) 63 for the above mortgages and pledges.
- 102 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Bonds payable
(1) Bonds payable
Item 30/6/2023 31/12/2022
4.375%, USD 900 million corporate bond 6,600,668,078.86 6,371,347,105.64
5.000%, USD 600 million corporate bond 4,378,503,545.01 4,227,154,465.35
4.750%, USD 500 million corporate bond 3,668,358,452.85 3,542,544,662.47
4.000%, USD 500 million corporate bond 3,605,706,452.74 3,482,186,896.02
2.690% RMB 3 billion corporate bond 3,067,434,246.55 3,027,415,890.40
2.450% RMB 3 billion corporate bond 3,060,008,219.16 3,023,560,273.97
3.360%, RMB 2 billion corporate bond 2,065,911,232.86 2,032,587,397.25
3.520%, RMB 2 billion corporate bond 2,014,658,630.13 2,050,147,945.19
Total 28,461,248,858.16 27,756,944,636.29
Less: Bonds payable due within one year 10,977,033,748.51 8,668,651,537.27
Bonds payable due after one year 17,484,215,109.65 19,088,293,099.02
- 103 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Bonds payable - continued
(2) Changes in bonds payable
Effect of
translation of
Amount issued Interest accrued Discount or Repayment in financial
Term of
Name of bond Face value Date of issue Amount of issue 31/12/2022 in the current based on par premium the current statements 30/6/2023
the bond
period value amortization period denominated in
foreign
currencies
4.375%, USD 900 million corporate bond USD 900,000,000.00 2018-08-06 5 years USD900,000,000.00 6,371,347,105.64 - 135,133,582.13 5,842,950.26 136,124,163.00 224,468,603.83 6,600,668,078.86
5.000%, USD 600 million corporate bond USD 600,000,000.00 2018-08-06 10 years USD600,000,000.00 4,227,154,465.35 - 103,416,062.23 2,757,811.68 103,713,648.00 148,888,853.75 4,378,503,545.01
4.750%, USD 500 million corporate bond USD 500,000,000.00 2015-08-03 10 years USD500,000,000.00 3,542,544,662.47 - 81,949,338.44 1,291,412.59 82,193,668.69 124,766,708.04 3,668,358,452.85
4.000%, USD 500 million corporate bond USD 500,000,000.00 2022-06-01 5 years USD500,000,000.00 3,482,186,896.02 - 68,789,349.01 1,262,840.14 69,127,421.00 122,594,788.57 3,605,706,452.74
2.690%, RMB 3 billion corporate bond RMB 3,000,000,000.00 2022-08-29 3 years RMB 3,000,000,000.00 3,027,415,890.40 - 40,018,356.15 - - - 3,067,434,246.55
2.450%, RMB 3 billion corporate bond RMB 3,000,000,000.00 2022-09-05 2 years RMB 3,000,000,000.00 3,023,560,273.97 - 36,447,945.19 - - - 3,060,008,219.16
3.360%, RMB 2 billion corporate bond RMB 2,000,000,000.00 2020-07-07 3 years RMB 2,000,000,000.00 2,032,587,397.25 - 33,323,835.61 - - - 2,065,911,232.86
3.520%, RMB 2 billion corporate bond RMB 2,000,000,000.00 2021-04-14 3 years RMB 2,000,000,000.00 2,050,147,945.19 - 34,910,684.94 - 70,400,000.00 - 2,014,658,630.13
Total 27,756,944,636.29 - 533,989,153.70 11,155,014.67 461,558,900.69 620,718,954.19 28,461,248,858.16
Less: Bonds payable due within one year 8,668,651,537.27 10,977,033,748.51
Bonds payable due after one year 19,088,293,099.02 17,484,215,109.65
- 104 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Lease liabilities
(1) Lease liabilities
Category 30/6/2023 31/12/2022
Lease payments 1,886,298,589.12 1,963,098,776.36
Unrecognized financing cost -703,582,182.39 -707,805,697.52
Total 1,182,716,406.73 1,255,293,078.84
Less: Lease liabilities due within one year 271,617,997.07 306,942,164.80
Lease liabilities due after one year 911,098,409.66 948,350,914.04
(2) Maturity of lease liabilities
Item 30/6/2023
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 327,019,170.03
2nd year subsequent to the balance sheet date 121,058,197.10
3rd year subsequent to the balance sheet date 57,729,132.27
Subsequent years 1,380,492,089.72
Total 1,886,298,589.12
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
40. Long-term payables
(1) Summary of long-term payables
Category 30/6/2023 31/12/2022
Long-term payables 4,091,933,479.34 3,698,632,219.45
Special payables 5,248,996.06 8,349,096.71
Total 4,097,182,475.40 3,706,981,316.16
Less: Long-term payables due within one year 170,057,437.21 155,665,725.85
Long-term payables due after one year 3,927,125,038.19 3,551,315,590.31
(2) Long-term payables
Category 30/6/2023 31/12/2022
Terminal management rights (Note 1) 4,050,735,426.35 3,657,579,951.15
Finance lease payable (Note 2) 41,198,052.99 41,052,268.30
Total 4,091,933,479.34 3,698,632,219.45
Less: Long-term payables due within one year 170,057,437.21 155,665,725.85
Long-term payables due after one year 3,921,876,042.13 3,542,966,493.60
- 105 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
40. 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 (hereinafter referred to as "BOT") with Sri Lanka Port Authority through a
subsidiary CICT, on the building, operation, management and development of the Colombo
Port South Container Terminal. 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 2023, the
amount payable for the purchase of terminal operation rights is RMB 869,281,376.60.
TCP, a subsidiary of the Company, entered into a franchise agreement on the Port of
Paranaguá with the Administration of the Ports of Paranaguá and Antonina – APPA
(hereinafter referred to "APPA"). The agreement provides an initial term of 25 years for the
concessions. In April 2016, TCP and APPA entered into a supplemental agreement, which
extended the period to 50 years and will be expired in October 2048.
As at 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 Paranaguá and 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 2023, the amount of royalty payable was RMB
3,181,454,049.75.
Note 2: The Company's subsidiary Zhoushan RoRo signed the sale and leaseback finance lease contract
with China Merchants Finance Lease (Tianjin) Co., Ltd. on 15 June 2022.
(3) Special payables
Increase for the Decrease for
Item 31/12/2022 30/6/2023 Reason
period the period
Employee housing fund 5,126,641.68 122,354.38 - 5,248,996.06 Note
Model worker
3,222,455.03 - 3,222,455.03 -
innovation studio
Total 8,349,096.71 122,354.38 3,222,455.03 5,248,996.06
Note: This represents 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.
- 106 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Long-term employee benefits payable
(1) Long-term employee benefits payable
Item 30/6/2023 31/12/2022
Post-employment benefits - net liabilities of defined benefits plan 521,164,946.43 516,950,669.03
Termination benefits 58,939,138.66 64,274,552.96
Others (Note) 98,312,058.16 112,285,587.01
Total 678,416,143.25 693,510,809.00
Less: Long-term employee benefits payable due within one year 54,069,377.57 54,414,877.57
Long-term employee benefits payable due after one year 624,346,765.68 639,095,931.43
Note: It is the employee resettlement cost related to land acquisition and reserve of Shantou Port,
a subsidiary of the Company.
(2) Changes in defined benefits plan
Present value of defined benefit plan obligation:
Item Current period Prior period
I. Opening balance 516,950,669.03 463,858,274.44
II. Defined benefit cost included in profit or loss for the period 10,350,000.04 10,819,999.96
1. Current service cost 2,730,200.04 3,684,999.98
2. Past service cost - -
3. Interest adjustment 7,619,800.00 7,134,999.98
III. Defined benefits cost included in other comprehensive income 789,488.92 -4,486.41
1. Actuarial gains (losses) - -
2. Effect of exchange rate changes 789,488.92 -4,486.41
IV. Other changes -6,925,211.56 -14,830,848.32
1. Benefits paid -6,925,211.56 -14,830,848.32
V. Closing balance 521,164,946.43 459,842,939.67
The Company's subsidiaries provide registered retirees and in-service staff with supplementary
post-employment benefit plans.
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 its 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.
- 107 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Provisions
Effect of
translation of
financial
Increase for Decrease for
Item 31/12/2022 statements 30/6/2023 Reason
the period the period
denominated
in foreign
currencies
Pending litigation 3536515643 525327076 724275726 407033603 3744600596 Note
Sales discount - 5413316340 5413316340 - -
Total 3536515643 5938643416 6137592066 407033603 3744600596
Note: This represents the estimated compensation amount that the Company's subsidiary TCP may
need to pay due to the pending litigation.
43. Deferred income
Item 31/12/2022 Increase for the period Decrease for the period 30/6/2023
Government grants 1,031,273,189.74 11,800,000.00 24,115,933.58 1,018,957,256.16
Total 1,031,273,189.74 11,800,000.00 24,115,933.58 1,018,957,256.16
Items involving government grants are as follows:
Recognized in
other Related to assets
Government grants 31/12/2022 Increase comprehensive 30/6/2023 /related to income
income
Refund from marine reclamation land 317,122,316.63 - 9,674,583.96 307,447,732.67 Related to assets
Tonggu channel widening project (Note) 255,256,506.12 - 3,528,891.78 251,727,614.34 Related to assets
Special subsidy for facilities and equipment 222,967,600.39 3,300,000.00 4,779,227.32 221,488,373.07 Related to assets
Public channel widening project in west port area (Note) 203,221,719.30 - 2,719,858.14 200,501,861.16 Related to assets
Government subsidies for intelligent system 12,936,438.51 - 1,120,747.05 11,815,691.46 Related to assets
Refund of land transfer charges 6,034,266.57 - 133,600.02 5,900,666.55 Related to assets
Others 13,734,342.22 8,500,000.00 2,159,025.31 20,075,316.91 Related to assets
Total 1,031,273,189.74 11,800,000.00 24,115,933.58 1,018,957,256.16
Note: Refer to Note (VIII) 23 for details.
44. Other non-current liabilities
Item 30/6/2023 31/12/2022
Actuarial expenses for difference in pension benefits of staff in
170,012,177.67 175,742,813.67
Public Security Bureau (Note 1)
Third party borrowings (Note 2) 139,273,435.00 143,755,523.50
Berth priority call right (Note 3) 1,922,598.07 4,480,217.05
Related party borrowings - 3,162,000.00
Others 2,096,824.80 1,600,086.28
Total 313,305,035.54 328,740,640.50
Less: Other non-current liabilities due within one year 134,713,435.00 142,357,523.50
Including: Actuarial expenses for difference in pension
15,440,000.00 15,440,000.00
benefits of staff in Public Security Bureau (Note 1)
Third party borrowings 119,273,435.00 123,755,523.50
Related party borrowings - 3,162,000.00
Other non-current liabilities due after one year 178,591,600.54 186,383,117.00
- 108 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Other non-current liabilities - continued
Note 1: This represents the difference between the pension benefits borne by Zhanjiang Port under
original standards and the pension benefits of policeman of Zhanjiang City. Zhanjiang Port
has recognized related liabilities of RMB 170,012,177.67 according to the actuarial results.
Note 2: This represents the principal and interest of borrowings obtained by the Company's
subsidiary Shunkong Port from Guangdong Shunkong Transportation Investment Co., Ltd.,
a related party of its minority shareholder Guangdong Shunkong City Investment Real
Estate Co., Ltd.
Note 3: This represents the berth priority call right as agreed in the contract entered into with the
customers in 2003, with total amount of USD 14,000,000.00. The Group must give priority
to the berthing requirements of the contracted customers during the contract period. The
Group amortized the berth priority right over 20 years using straight-line method. For the
period from 1 January to 30 June 2023, the amount included in operating income is RMB
2,557,618.98.
45. Share capital
Changes for the period
Item 31/12/2022 New issue of Capitalization of 30/6/2023
Bonus issue Others Sub-total
share surplus reserve
For the period from 1 January to 30 June 2023
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person shares 576,709,537.00 - - - - - 576,709,537.00
3. Other domestic shares 7,366.00 - - - - - 7,366.00
4. Foreign shares - - - - - - -
Total restricted tradable shares 576,716,903.00 - - - - - 576,716,903.00
II. Non-restricted tradable shares
1. Ordinary shares denominated in RMB 1,742,468,718.00 - - - - - 1,742,468,718.00
2. Foreign capital shares listed domestically 179,889,040.00 - - - - - 179,889,040.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 1,922,357,758.00 - - - - - 1,922,357,758.00
III. Total shares 2,499,074,661.00 - - - - - 2,499,074,661.00
Changes for the period
Item 12/31/2021 New issue of Capitalization of 31/12/2022
Bonus issue Others Sub-total
share surplus reserve
For the year ended 31 December 2022
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person shares - 576,709,537.00 - - - 576,709,537.00 576,709,537.00
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 -1,148,648,648.00 -
Total restricted tradable shares 1,148,658,469.00 576,709,537.00 - - -1,148,651,103.00 -571,941,566.00 576,716,903.00
II. Non-restricted tradable shares
1. Ordinary shares denominated in RMB 593,819,745.00 - - - 1,148,648,973.00 1,148,648,973.00 1,742,468,718.00
2. Foreign capital shares listed domestically 179,886,910.00 - - - 2,130.00 2,130.00 179,889,040.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 773,706,655.00 - - - 1,148,651,103.00 1,148,651,103.00 1,922,357,758.00
III. Total shares 1,922,365,124.00 576,709,537.00 - - - 576,709,537.00 2,499,074,661.00
- 109 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
46. Capital reserve
Item Opening balance Increase Decrease Closing balance
For the period from 1 January to 30 June 2023
Capital premium 34,208,812,963.50 366,783,906.99 - 34,575,596,870.49
Including: Capital contributed by investors 17,068,816,277.34 - - 17,068,816,277.34
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
2,165,423,814.02 366,783,906.99 - 2,532,207,721.01
interests (Note 1)
Others 1,671,635,666.41 - - 1,671,635,666.41
Other capital reserve 542,827,871.75 859,840.86 48,909,049.82 494,778,662.79
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting system
Unexercised share-based payment (Note 2) 5,591,402.00 859,840.86 - 6,451,242.86
Other changes in owners' equity of the investee
under the equity method other than changes in net
540,017,602.75 - 48,909,049.82 491,108,552.93
profit or loss, profit distribution and other
comprehensive income
Total 34,751,640,835.25 367,643,747.85 48,909,049.82 35,070,375,533.28
2022
Capital premium 23,189,922,809.62 11,018,890,153.88 - 34,208,812,963.50
Including: Capital contributed by investors 7,012,992,483.94 10,055,823,793.40 - 17,068,816,277.34
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
1,215,209,939.74 950,213,874.28 - 2,165,423,814.02
interests
Others 1,658,783,180.21 12,852,486.20 - 1,671,635,666.41
Other capital reserve 402,779,949.08 151,303,029.21 11,255,106.54 542,827,871.75
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting system
Unexercised share-based payment 9,956,938.60 5,617,671.30 9,983,207.90 5,591,402.00
Other changes in owners' equity of the investee
under the equity method other than changes in net
395,604,143.48 145,685,357.91 1,271,898.64 540,017,602.75
profit or loss, profit distribution and other
comprehensive income
Total 23,592,702,758.70 11,170,193,183.09 11,255,106.54 34,751,640,835.25
Note 1:The Company and its subsidiary, Port Development (Hong Kong) Co., Ltd., increased the
holding of ordinary shares in CM Port, resulting in an increase of RMB 366,783,906.99 in
capital reserve in the current year. Refer to Note (X) 2 for details.
Note 2:Refer to Note (XIV) 2 for details.
- 110 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Other comprehensive income
Amount incurred in the period
Less: Amount included
Post-tax income Post-tax income
in other comprehensive Less: Other
Item Opening balance Pre-tax amount for Less: Income attributable to attributable to changes Closing balance
income in the prior
the period tax expense owners of the minority
periods transferred to
Company shareholders
profit or loss this period
For the period from 1 January to 30 June 2023:
I. Other comprehensive income that will not be
51,014,303.06 64,821,997.20 - - 29,979,361.65 34,842,635.55 - 80,993,664.71
reclassified subsequently to profit or loss
Including: Changes arising from remeasurement of
defined benefits plan -10,189,712.88 - - - - - - -10,189,712.88
Other comprehensive income that can't be
transferred to profit or loss under the equity -8,907,673.34 64,821,997.20 - - 29,979,361.65 34,842,635.55 - 21,071,688.31
method
Changes in fair value of investments in 70,111,689.28 - - - - - - 70,111,689.28
other equity instruments
II. Other comprehensive income that will be reclassified
-740,567,922.92 1,362,351,707.87 - - 308,838,022.14 1,053,513,685.73 - -431,729,900.78
subsequently to profit or loss
Including: Other comprehensive income that may be
-60,762,188.43 38,907,509.63 - - 18,341,346.24 20,566,163.39 - -42,420,842.19
transferred to profit or loss under the equity method
Translation differences of financial statements
-679,805,734.49 1,323,444,198.24 - - 290,496,675.90 1,032,947,522.34 - -389,309,058.59
denominated in foreign currencies
Total other comprehensive income -689,553,619.86 1,427,173,705.07 - - 338,817,383.79 1,088,356,321.28 - -350,736,236.07
2022 (restated)
I. Other comprehensive income that will not be
81,233,996.26 -72,230,027.20 - 329,334.05 -22,706,023.29 -49,853,337.96 7,513,669.91 51,014,303.06
reclassified subsequently to profit or loss
Including: Changes arising from remeasurement of
2,603,415.85 -49,039,668.45 - - -12,793,128.73 -36,246,539.72 - -10,189,712.88
defined benefits plan
Other comprehensive income that can't be
transferred to profit or loss under the equity 2,643,088.68 -25,906,733.50 - - -11,550,762.02 -14,355,971.48 - -8,907,673.34
method
Changes in fair value of investments in
75,987,491.73 2,716,374.75 - 329,334.05 1,637,867.46 749,173.24 7,513,669.91 70,111,689.28
other equity instruments
II. Other comprehensive income that will be reclassified
subsequently to profit or loss -971,359,314.44 1,701,191,299.27 - - 230,791,391.52 1,470,399,907.75 - -740,567,922.92
Including: Other comprehensive income that may be
transferred to profit or loss under the equity 49,431,519.10 -246,633,232.89 - - -110,193,707.53 -136,439,525.36 - -60,762,188.43
method
Translation differences of financial statements
-1,020,790,833.54 1,947,824,532.16 - - 340,985,099.05 1,606,839,433.11 - -679,805,734.49
denominated in foreign currencies
Total other comprehensive income -890,125,318.18 1,628,961,272.07 - 329,334.05 208,085,368.23 1,420,546,569.79 7,513,669.91 -689,553,619.86
- 111 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Special reserve
Item 31/12/2022 Increase Decrease 30/6/2023
Safety production costs 26,358,259.97 31,106,449.65 13,580,359.97 43,884,349.65
49. Surplus reserve
Item 31/12/2022 Increase Decrease 30/6/2023
Statutory surplus reserve 1,001,917,449.15 - - 1,001,917,449.15
Note: According to the Company Law of the Peoples Republic of China and the Articles of
Association of the Company, the Company makes appropriation to statutory surplus reserve
at 10% of the net profit for the year. The appropriation may be ceased when the accumulated
amount of statutory surplus reserve reaches 50% of the registered capital. The statutory
surplus reserve may be used to make up for losses or increase the share capital upon approval.
The amount of appropriation to discretionary surplus reserve is proposed by the board of
directors and approved by the shareholders meeting. The discretionary surplus reserve may
be used to make up for losses of previous years or increase the share capital upon approval.
50. Unappropriated profit
Proportion of
Item Amount appropriation or
allocation
For the period from 1 January to 30 June 2023
Unappropriated profit at the end of prior period before adjustment 16,679,688,347.09
Add: Adjustment of unappropriated profit at the beginning of the period 22,299,954.05
Including: Changes in accounting policies 22,299,954.05
Unappropriated profit at the beginning of period after adjustment 16,701,988,301.14
Add: Net profit attributable to shareholders of the Company for the period 1,902,334,759.43
Less: Appropriation to statutory surplus reserve -
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 1,124,583,597.45 Note
Difference in pension benefits -
Others -
Unappropriated profit at the end of the period 17,479,739,463.12
Proportion of
Item Amount appropriation or
allocation
For the year ended 31 December 2022 (restated)
Unappropriated profit at the end of prior year before adjustment 14,205,879,106.49
Add: Adjustment of unappropriated profit at the beginning of the year 21,052,360.17
Including: Changes in accounting policies 21,052,360.17
Unappropriated profit at the beginning of the year after adjustment 14,226,931,466.66
Add: Net profit attributable to shareholders of the Company for the year 3,338,693,816.70
Transfer of other comprehensive income 7,513,669.91
Less: Appropriation to statutory surplus reserve 40,734,887.15
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 826,617,003.32
Difference in pension benefits 3,798,761.66
Others -
Unappropriated profit at the end of the year 16,701,988,301.14
- 112 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
50. Unappropriated profit - continued
Note : According to the resolution of 2022 shareholders meeting held on 22 May 2023, the
Company distributed cash dividends of RMB 4.50 (inclusive of tax) for every 10 shares,
totaling up to RMB 1,124,583,597.45 on the basis of the total shares of 2,499,074,661 shares
at the end of 2022.
51. Operating income and operating costs
(1) Operating income and operating costs
Current period Prior period
Item
Income Cost Income Cost
Principal operation 7,708,854,212.85 4,408,430,226.61 8,082,386,860.84 4,522,454,260.85
Other operations 86,407,358.14 111,513,527.18 68,075,506.35 114,914,620.80
Total 7,795,261,570.99 4,519,943,753.79 8,150,462,367.19 4,637,368,881.65
(2) Revenue from contracts
Bonded logistics
Categories of contracts Ports operation Other operation Total
operation
Mainland China, Hong Kong
5,293,340,883.37 245,225,754.19 86,407,358.14 5,624,973,995.70
and Taiwan region
- Pearl River Delta 3,097,351,341.64 170,943,597.08 86,407,358.14 3,354,702,296.86
- Yangtze River Delta 454,417,897.17 - - 454,417,897.17
- Bohai Rim 34,005,738.63 74,282,157.11 - 108,287,895.74
- Other regions 1,707,565,905.93 - - 1,707,565,905.93
Other countries 2,150,550,737.41 19,736,837.88 - 2,170,287,575.29
Total 7,443,891,620.78 264,962,592.07 86,407,358.14 7,795,261,570.99
(3) Description of performance obligations
The Group provides wharf services, bonded logistics services and other services. These services are
obligations satisfied over time. For wharf services, as the handling time for containers and bulk
cargos is short, the management believes that it is an appropriate method to recognize the fulfillment
of performance obligation and revenue upon the completion of the services. For bonded logistics
services and other services, the customers evenly obtain and consume economic benefits from the
Group's performance of contract, meanwhile charging rules as agreed in contract terms usually
adopt daily/month/yearly basis. During the process of rendering services, the Group recognizes
revenue using the straight-line method.
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 rates or dis counts. 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 includes this part of
discount in other payables and provisions, rather than including it in the transaction prices. At the
end of the period, the variable considerations arising from sales discount are set out in Note (VIII)
33 (3) and Note (VIII) 42.
- 113 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
52. Taxes and levies
Item Current period Prior period
Property tax 37,043,349.16 36,445,186.60
Land use tax 21,497,609.30 18,256,154.56
City construction and maintenance tax 3,574,919.14 4,410,503.24
Education surcharges and local education surcharges 2,755,664.80 3,271,326.62
Stamp duty 1,784,831.65 2,171,053.36
Others (Note) 75,120,958.39 70,960,315.69
Total 141,777,332.44 135,514,540.07
Note: Others mainly represent the Program of Social Integration and Contribution for the
Financing of Social Security and Tax on Services, with total amount of BRL 50,576,365.39
(equivalent to RMB 68,998,672.97) assumed by Company's subsidiary TCP in the current
period.
53. Administrative expenses
Item Current period Prior period
Employee benefits 588,853,219.14 602,477,006.88
Depreciation expenses 37,022,009.61 39,373,984.62
Amortization of intangible assets 28,171,677.17 28,961,337.07
Fees paid to agencies 17,093,174.16 35,451,603.67
Others 119,776,074.57 106,238,728.31
Total 790,916,154.65 812,502,660.55
54. Financial expenses
Item Current period Prior period
Interest expenses 967,915,432.19 941,760,614.15
Less: Capitalized interest expenses 22,358,449.22 14,559,885.48
Less: Interest income 248,901,354.18 212,820,789.37
Interest expenses of terminal management rights (Note) 135,914,691.46 175,512,351.90
Exchange differences 93,018,282.35 409,143,801.31
Interest expenses of lease liabilities 31,418,935.49 38,284,349.10
Handling fee 2,299,754.36 12,011,540.57
Others 1,142,449.45 2,613,065.49
Total 960,449,741.90 1,351,945,047.67
Note: Details are set out in Note (VIII) 40.
- 114 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
55. Other income
Item Current period Prior period
Transfer from deferred income (Note (VIII) 43) 24,115,933.58 22,802,653.80
Weighted deduction of VAT 14,133,305.35 14,149,044.01
Subsidy for business development 10,065,510.04 31,566,099.04
Subsidy for business operation 6,146,204.98 8,918,543.30
Subsidy for job stabilization 1,607,911.86 4,738,985.48
Others 6,488,077.46 5,305,499.02
Total 62,556,943.27 87,480,824.65
56. Investment income
(1) Details of investment income
Item Current period Prior period
Gains from long-term equity investments under
3,095,294,518.20 4,211,173,480.05
the equity method
Including: Gains from long-term equity investments
2,925,319,084.66 4,013,474,427.71
in associates under the equity method
Including: Gains from long-term equity investments in joint
169,975,433.54 197,699,052.34
ventures under the equity method
Investment income on held-for-trading financial assets 42,382,509.61 143,904,101.39
Investment income on other non-current financial assets 40,991,190.59 -
Dividend income on investments in other equity instruments 8,824,500.00 240,001.47
Investment income from disposal of long-term equity investment - -43,817.42
Total 3,187,492,718.40 4,355,273,765.49
(2) Details of gains from long-term equity investments under the equity method
Investee Current period Prior period Reason for changes
SIPG 2,053,880,439.55 2,960,021,044.89 Changes in net profit of investee
Ninbo Zhoushan 486,448,025.41 125,568,457.33 Changes in net profit of investee
Terminal Link SAS 123,523,209.71 198,772,626.71 Changes in net profit of investee
Nanshan Group 113,853,548.75 50,936,344.06 Changes in net profit of investee
Liaoning Port 71,442,863.94 83,953,806.32 Changes in net profit of investee
Qingdao Qianwan United Container Terminal
65,204,791.15 56,430,615.96 Changes in net profit of investee
Co., Ltd.
Euro-Asia Oceangate S.àr.l. 52,892,617.53 48,659,755.96 Changes in net profit of investee
Port De Djibouti S.A 46,389,947.52 511,374,203.72 Changes in net profit of investee
Modern Terminals Limited 24,704,316.27 67,145,545.55 Changes in net profit of investee
Shenzhen China Merchants Qianhai Industrial
21,312,200.00 13,281,800.00 Changes in net profit of investee
Development Co., Ltd.
Yantai Port Group Laizhou Port Co., Ltd. 20,672,709.37 22,069,427.08 Changes in net profit of investee
Others 14,969,849.00 72,959,852.47 Changes in net profit of investee
Total 3,095,294,518.20 4,211,173,480.05
- 115 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
57. Gains (losses) from changes in fair value
Item Current period Prior period
Held-for-trading financial assets 29,660,173.93 8,456,691.77
Other non-current financial assets 113,377,129.75 -46,482,804.35
Including: Financial assets at FVTPL 113,377,129.75 -46,482,804.35
Total 143,037,303.68 -38,026,112.58
58. Gains (losses) on impairment of credit
Item Current period Prior period
I. Gains (losses) on impairment of credit of accounts receivable -6,091,772.24 2,604,456.88
II. Gains (losses) on impairment of credit of other receivables -848,166.66 449,134.32
III. Gains (losses) on impairment of credit of long-term receivables -355,682.40 -171,178.59
Total -7,295,621.30 2,882,412.61
59. Gains (losses) on disposal of assets
Amount
included in non-
Item Current period Prior period recurring profit
or loss for the
current period
Gains (losses) on disposal of non-current assets 352,045.75 -207,276.37 352,045.75
Including: Gains (losses) on disposal of fixed assets 332,086.56 -723,828.56 332,086.56
Other income 19,959.19 516,552.19 19,959.19
60. Non-operating income
Amount included
in non-recurring
Item Current period Prior period
profit or loss for
the current period
Liquidated damages received 11,941,072.67 3,789,301.53 11,941,072.67
Management service fee and directors' remuneration 7,244,883.79 5,397,021.58 7,244,883.79
Relocation compensation received 4,301,000.00 - 4,301,000.00
Land rent relief 2,687,908.22 2,655,624.40 2,687,908.22
Gains from damage or retirement of non-current
1,501,585.40 1,440,232.40 1,501,585.40
assets
Including: Gains from from damage or retirement
1,495,213.72 1,440,232.40 1,495,213.72
of fixed assets
Government grants 51,161.13 1,261,712.56 51,161.13
Exempted current accounts 15,000.00 4,634,628.05 15,000.00
Insurance compensation received 12,234.79 375,097.87 12,234.79
Others 8,828,638.46 639,308.00 8,828,638.46
Total 36,583,484.46 20,192,926.39 36,583,484.46
- 116 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
61. Non-operating expenses
Amount included in
non-recurring profit
Item Current period Prior period
or loss for the
current period
Losses on retirement of non-current assets 8,552,288.98 2,984,083.67 8,552,288.98
Including: Losses on damage or retirement 8,552,288.98
8,552,288.98 2,984,083.67
of fixed assets
Compensation, liquidated damages and 1,008,437.74
1,008,437.74 -
penalties
External donations 196,195.88 231,477.20 196,195.88
Litigation losses - 16,732,991.55 -
Others 322,080.73 318,905.87 322,080.73
Total 10,079,003.33 20,267,458.29 10,079,003.33
62. Income tax expenses
Prior period
Item Current period
(restated)
Current tax expenses 526,429,958.55 553,914,215.26
Deferred tax expenses 86,789,894.01 65,218,762.89
Total 613,219,852.56 619,132,978.15
Reconciliation of income tax expenses to the accounting profit is as follows:
Item Current period
Gross profit 4,673,846,473.26
Income tax expenses calculated at 25% 1,168,461,618.32
Effect of non-deductible cost, expenses and losses 104,920,871.30
Accrued income tax expenses 174,637,852.83
Effect of deductible temporary differences or deductible losses for which
84,278,964.30
the deferred tax assets are not recognized in current period
Effect of tax-free income (Note) -544,413,512.91
Effect of tax incentives and changes in tax rate -230,326,665.55
Effect of different tax rates of subsidiaries operating in other jurisdictions -124,623,839.20
Effect of utilizing deductible losses for which the deferred tax assets
-15,451,288.66
were not recognized in prior period
Effect of adjustments to prior-year income tax -18,575,796.97
Others 14,311,649.10
Income tax expenses 613,219,852.56
Note: This mainly represents the tax effect on investment income from joint ventures and
associates.
- 117 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Assets with restricted ownership or use right
Item 30/6/2023 31/12/2022
Equity investment in TML (Note 1) 1,133,181,949.12 1,047,063,416.30
Fixed assets (Note 2) 753,008,833.33 341,870,382.84
Intangible assets (Note 2) 474,487,529.49 222,040,259.68
Construction in progress (Note 2) 7,120,027.83 4,298,598.50
Cash and bank balances (Note 3) 3,545,619.20 9,309,145.94
Equity investment in CICT (Note 1) - 2,115,796,097.99
Total 2,371,343,958.97 3,740,377,901.25
Note 1: Details of mortgaged equity and interests are set out in Note (VIII) 37.
Note 2: Details of pledged borrowings are set out in Note (VIII) 26 and Note (VIII) 37. Details of
sale and leaseback transactions are set out in Note (VIII) 36 and Note (VIII) 40.
Note 3: Details of restricted cash and bank balances are set out in Note (VIII) 1.
64. Other comprehensive income, net of tax
Details are set out in Note (VIII) 47.
65. Items in cash flow statement
(1) Other cash receipts relating to operating activities
Item Current period Prior period
Interest income 158,498,388.26 92,837,488.11
Government grants 37,471,669.54 42,016,594.20
Guarantees and deposits 30,744,990.97 26,742,477.96
Rentals 6,510,750.65 2,869,149.16
Insurance compensation 1,998,402.38 1,210,988.68
Others 138,575,220.13 282,982,833.45
Total 373,799,421.93 448,659,531.56
- 118 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Items in cash flow statement - continued
(2) Other cash payments relating to operating activities
Item Current period Prior period
Advances payment 93,657,548.56 188,969,753.65
Operating expenses such as operating costs and administration
125,945,130.98 110,138,728.88
expenses
Guarantees and deposits 13,258,231.38 15,253,990.79
Harbor dues on cargo 6,085,935.98 6,923,999.90
Rentals 23,988,105.53 13,157,361.39
Port charges 2,639,938.00 3,234,003.82
Others 123,054,086.20 73,444,972.12
Total 388,628,976.63 411,122,810.55
(3) Other cash receipts relating to investing activities
Item Current period Prior period
Receipt of interest on project advances 87,390,340.59 81,787,395.95
Others 15,768,702.30 12,778,782.74
Total 103,159,042.89 94,566,178.69
(4) Other cash payments relating to investing activities
Item Current period Prior period
Disposal costs of retired assets 7,340,158.92 1,419,567.81
Taxes on land acquisition and reserve paid by Antongjie Wharf
- 947,523,385.44
Warehousing Service (Shenzhen) Co., Ltd. ("ATJ")
Staff relocation cost in respect of land acquisition and
- 18,761,552.44
reserve paid by Shantou Port
Others 6,146.71 8,228.73
Total 7,346,305.63 967,712,734.42
(5) Other cash receipts relating to financing activities
Item Current period Prior period
Receipt of sale and leaseback payment 322,200,480.00 50,000,000.00
Others 160,82044 2,897,609.21
Total 322,361,300.44 52,897,609.21
(6) Other cash payments relating to financing activities
Item Current period Prior period
Payment for the Company's acquisition of minority interests
302,638,065.73 74,787,051.66
of CM Port
Payments of rental expenses 168,480,367.22 129,259,179.22
Payment of financing costs 1,314,920.07 16,628,834.22
Others 2,422,683.83 4,302,053.94
Total 474,856,036.85 224,977,119.04
- 119 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Prior period
Supplementary information Current period
(restated)
1. Reconciliation of net profit to cash flows from operating
activities:
Net profit 4,060,626,620.70 4,886,494,162.50
Add: Provision for impairment losses of assets -65,324.84 -
Provision for impairment losses of credit 7,295,621.30 -2,882,412.61
Depreciation of fixed assets 1,019,376,080.32 993,740,407.62
Depreciation of investment property 91,173,671.26 92,083,960.88
Depreciation of right-of-use assets 173,399,908.80 174,019,155.17
Amortization of intangible assets 357,373,882.88 319,604,700.15
Amortization of long-term prepaid expenses 43,553,304.87 37,291,473.18
Losses (gains) on disposal of fixed assets, intangible
-352,045.75 207,276.37
assets and other long-term assets
Losses on retirement of fixed assets, intangible assets
7,050,703.58 1,543,851.27
and other long-term assets
Losses (gains) on changes in fair value -143,037,303.68 38,026,112.58
Financial expenses 1,091,936,549.51 1,456,795,942.93
Investment losses (gains) -3,187,492,718.40 -4,355,273,765.49
Decrease (increase) in deferred tax assets 22,271,600.81 -3,364,145.57
Increase in deferred tax liabilities 64,518,293.20 68,582,908.46
Decrease (increase) in inventories -27,601,948.90 -24,682,369.59
Decrease (increase) in operating receivables -1,087,893,594.91 -487,958,209.89
Increase (decrease) in operating payables -181,287,994.79 27,022,129.13
Net cash flows from operating activities 2,310,845,305.96 3,221,251,177.09
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 held under finance leases - -
3. Net changes in cash and cash equivalents:
Closing balance of cash 14,556,330,454.28 14,123,520,754.66
Less: Opening balance of cash 13,567,309,471.62 12,727,355,238.36
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 989,020,982.66 1,396,165,516.30
(2) Cash and cash equivalents
Item 30/6/2023 31/12/2022
I. Cash 14,556,330,454.28 13,567,309,471.62
Including: Cash on hand 5,239,515.56 726,960.10
Bank deposits available for payment at any time 14,248,343,177.54 13,045,336,190.09
Other monetary funds available for payment at any time 175,363,071.85 521,246,321.43
Cash and bank balances corresponding to the transfer
127,384,689.33 -
of Ningbo Daxie to held-for-sale category
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 14,556,330,454.28 13,567,309,471.62
- 120 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Foreign currency monetary items
Foreign currency
Balance in RMB
Item balance at Exchange rate
at 30/6/2023
30/6/2023
Cash and bank balances 1,824,290,197.00
Including: HKD 21,872,665.74 0.9205 20,133,788.81
USD 190,091,806.99 7.2098 1,370,523,910.04
EUR 31,014,214.28 7.8773 244,308,270.15
RMB 189,324,228.00 1.0000 189,324,228.00
Accounts receivable 555,416,907.52
Including: HKD 423,566.91 0.9205 389,893.34
USD 5,683,083.17 7.2098 40,973,893.04
EUR 65,257,527.47 7.8773 514,053,121.14
Other receivables 1,277,212,760.76
Including: HKD 68,373,407.85 0.9205 62,937,721.93
USD 22,819.80 7.2098 164,526.19
EUR 5,515,917.29 7.8773 43,450,535.27
RMB 1,170,659,977.37 1.0000 1,170,659,977.37
Long-term receivables 205,820,084.52
Including: EUR 26,128,252.64 7.8773 205,820,084.52
Other non-current assets 30,930,742.61
Including: EUR 3,926,566.54 7.8773 30,930,742.61
Short-term borrowings 2,343,078,000.00
Including: USD 110,000,000.00 7.2098 793,078,000.00
RMB 1,550,000,000.00 1.0000 1,550,000,000.00
Accounts payable 27,024,927.97
Including: HKD 1,310,537.99 0.9205 1,206,350.22
EUR 3,277,592.29 7.8773 25,818,577.75
Other payables 453,014,922.60
Including: HKD 33,545,375.26 0.9205 30,878,517.93
USD 39,765,925.33 7.2098 286,704,368.44
EUR 16,985,975.26 7.8773 133,803,622.92
RMB 1,628,413.31 1.0000 1,628,413.31
Non-current liabilities due within one year 7,447,686,725.37
Including: USD 938,863,965.69 7.2098 6,769,021,419.83
RMB 678,665,305.54 1.0000 678,665,305.54
Long-term borrowings 4,838,784,035.00
Including: EUR 22,950,000.00 7.8773 180,784,035.00
RMB 4,658,000,000.00 1.0000 4,658,000,000.00
Bonds payable 11,484,215,109.68
Including: USD 1,592,861,814.43 7.2098 11,484,215,109.68
- 121 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Government grants
(1) New government grants for the period
Amount included
Type Amount Item Account in profit or loss
for the period
Related to income 10,065,510.04 Subsidy for business development Other income 10,065,510.04
Related to assets 8,500,000.00 Others Deferred income 1,600,000.03
Related to income 6,146,204.98 Subsidy for business operation Other income 6,146,204.98
Special subsidies for facilities and
Related to assets 3,300,000.00 Deferred income 36,263.74
equipment
Related to income 1,607,911.86 Subsidy for job stabilization Other income 1,607,911.86
Related to income 4,652,775.90 Others Other income 4,652,775.90
Related to income 51,161.13 Others Non-operating income 51,161.13
Total 34,323,563.91 24,159,827.68
69. Leases
(1) Lessor under operating leases
Item Amount
I. Revenue
Lease income 156,011,442.22
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 183,997,926.53
2nd year 135,817,724.79
3rd year 113,599,395.19
4th year 97,394,090.85
5th year 60,264,411.35
Over 5 years 185,727,124.72
Note: The operating leases where the Group as the lessor are related to port and terminal facilities,
machinery and equipment, motor vehicles, land and buildings, with lease terms ranging
from 0.5 year to 50 years and an option to renew the leases of port and terminal facilities,
machinery equipment, land and buildings. The Group considers that as the leased assets are
properly used, unguaranteed balance of such assets does not constitute material risk of the
Group.
- 122 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Leases - continued
(2) Lessee
Item Amount
Interest expense on lease liabilities 31,418,935.49
Short-term lease expenses that are accounted for using simplified approach
27,727,081.54
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 -
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 5,446,966.10
Total cash outflows relating to leases 185,790,438.60
Profit (loss) arising from sale and leaseback transactions -33,565,846.07
Cash inflows from sale and leaseback transactions 322,200,480.00
Cash outflows from sale and leaseback transactions 97,155,869.70
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 subsidiary due to the Group's disposal of investment in the
subsidiary 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.
- 123 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group - Major subsidiaries
Principal Registered capital Shareholding ratio
Place of Nature of
Name of the subsidiary place of (RMB'0000, unless (%) Acquisition method
incorporation business
business otherwise specified) Direct Indirect
Shenzhen Chiwan International Freight Agency Shenzhen Shenzhen Logistics support
550.00 100.00 - Established through investment
Co., Ltd. China China services
Chiwan Wharf Holdings (Hong Kong) Ltd. Investment
HK China HK China HKD 1,000,000 100.00 - Established through investment
("Wharf Holdings Hong Kong") holding
Dongguan Dongguan Logistics support
Dongguan Shenchiwan Port Affairs Co., Ltd. 45,000.00 85.00 - Established through investment
China China services
Dongguan Dongguan Logistics support
Dongguan Shenchiwan Wharf Co., Ltd. 40,000.00 100.00 - Established through investment
China China services
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Chiwan Harbor Container Co., Ltd. 28,820.00 100.00 -
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Chiwan Port Development Co., Ltd. 10,000.00 100.00 -
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Chiwan Container Terminal Co., Ltd. USD 95,300,000 55.00 20.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Chiwan Tugboat Co., Ltd. 2,400.00 100.00 -
China China services enterprises under common control
Chiwan Shipping (Hong Kong) Limited HK China HK China Logistics support HKD 800,000 100.00 - Business combination involving
services enterprises under common control
Investment Business combination involving
CM Port (Note 1) HK China HK China HKD 46,668,174,000 0.37 46.10
holding enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
China Merchants Bonded Logistics Co., Ltd. 70,000.00 40.00 60.00
China China services enterprises under common control
China Merchants Holdings (International)
Shenzhen Shenzhen Business combination involving
Information Technology Co., Ltd. ("CM IT service 8,784.82 13.18 43.74
China China enterprises under common control
International Tech")
Liaoning Business combination involving
Dalian Port Logistics Network Co., Ltd. Liaoning China IT service 3,200.00 - 79.03
China enterprises under common control
Liaoning Business combination involving
Gangxin Technology Liaoning China IT service 800.00 - 100.00
China enterprises under common control
China Merchants International (China) Investment Shenzhen Shenzhen Investment Business combination involving
USD 67,400,000 - 100.00
Co., Ltd. China China holding enterprises under common control
China Merchants International Container Terminal Logistics support Business combination involving
Qingdao China Qingdao China USD 206,300,000 - 100.00
(Qingdao) Co., Ltd. services enterprises under common control
Logistics support Business combination involving
China Merchants Container Services Limited HK China HK China HKD 500,000 - 100.00
services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
China Merchants Port (Shenzhen) Co., Ltd. 55,000.00 - 100.00
China China services enterprises under common control
Engineering
Shenzhen Shenzhen Business combination involving
Shenzhen Haiqin Project Management Co., Ltd. supervision 1,000.00 - 100.00
China China enterprises under common control
service
Preparation for
Shenzhen Shenzhen Business combination involving
ATJ the warehousing HKD 100,000,000 - 100.00
China China enterprises under common control
project
Preparation for
Shenzhen Shenzhen Business combination involving
ASJ the warehousing HKD 100,000,000 - 100.00
China China enterprises under common control
project
China Merchants International Terminal (Qingdao) Logistics support Business combination involving
Qingdao China Qingdao China USD 44,000,000 - 90.10
Co., Ltd. services enterprises under common control
Logistics support Business combination involving
CICT Sri Lanka Sri Lanka USD 150,000,100 - 85.00
services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Magang Godown & Wharf 33,500.00 - 100.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Mawan Port Services Co., Ltd. 20,000.00 - 100.00
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Tugboat Co., Ltd. China China services 1,500.00 - 70.00 enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Port Co., Ltd. 116,700.00 - 60.00
China China services enterprises under common control
Zhangzhou Investment Promotion Bureau
Zhangzhou Zhangzhou Logistics support Business combination involving
Xiamenwan Port Affairs Co., Ltd. ("Xiamenwan 44,450.00 - 31.00
China China services enterprises under common control
Port Affairs") (Note 2)
Shenzhen Shenzhen Logistics support Business combination involving
Shekou Container Terminals Ltd. HKD 618,201,200 - 100.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianyunjie Container Terminals Co., Ltd. 60,854.90 - 100.00
China China services enterprises under common control
Anxunjie Container Terminals (Shenzhen) Shenzhen Shenzhen Logistics support Business combination involving
127,600.00 - 100.00
Co., Ltd. China China services enterprises under common control
Preparation for
Anyunjie Port Warehousing Service (Shenzhen) Shenzhen Shenzhen Business combination involving
the warehousing 6,060.00 - 80.00
Co., Ltd. China China enterprises under common control
project
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Haixing 53,072.92 - 67.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianyongtong Terminal Co., Ltd. USD 7,000,000 - 100.00
China China services enterprises under common control
- 124 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - Major subsidiaries - continued
Principal Registered capital Shareholding ratio
Place of Nature of
Name of the subsidiary place of (RMB'0000, unless (%) Acquisition method
incorporation business
business otherwise specified) Direct Indirect
Logistics support Business combination involving
Yide Port Foshan China Foshan China 21,600.00 51.00 -
services enterprises under common control
Investment Business combination involving
Mega Shekou Container Terminals Limited BVI BVI USD 120.00 - 80.00
holding enterprises under common control
Republic of Republic of Logistics support Business combination involving
Lome Container Terminal S.A. (Note 3) XOF 200,000,000 - 35.00
Togo Togo services enterprises under common control
Investment Business combination involving
Gainpro Resources Limited BVI BVI USD 1.00 - 76.50
holding enterprises under common control
Hambantota International Port Group (Private) Logistics support Business combination involving
Sri Lanka Sri Lanka USD 1,145,480,000 - 85.00
Limited services enterprises under common control
Shantou Logistics support Business combination involving
Shantou port Shantou China 12,500.00 - 60.00
China services enterprises under common control
Shenzhen Jinyu Rongtai Investment Development Shenzhen Shenzhen Property lease, Business combination involving
80,000.00 - 100.00
Co., Ltd. China China etc. enterprises under common control
Shenzhen Merchants Qianhaiwan Real Estate Shenzhen Shenzhen Property lease, Business combination involving
20,000.00 - 100.00
Co., Ltd China China etc. enterprises under common control
Juzhongzhi Investment (Shenzhen) Co., Ltd. Shenzhen Shenzhen Investment 4,000.00 - 75.00 Business combination involving
China China consulting enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianda Tugboat Co., Ltd. 200.00 - 60.29
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
China Ocean Shipping Tally Zhangzhou Co., Ltd. 200.00 - 84.00
China China services enterprises under common control
Logistics support Business combination involving
China Merchants Holdings (Djibouti) FZE Djibouti Djibouti USD 38,140,000 - 100.00
services enterprises under common control
Xinda Resources Limited Investment Business combination involving
BVI BVI USD 107,620,000 - 77.45
holding enterprises under common control
Investment Business combination involving
Kong Rise Development Limited HK China HK China USD 107,620,000 - 100.00
holding enterprises under common control
Logistics support Business combination not
TCP Brazil Brazil BRL 68,851,600 - 100.00 involving enterprises under
services
common control
Investment Business combination involving
Direcet Achieve Investments Limited HK China HK China USD 814,781,300 - 100.00
holding enterprises under common control
Zhoushan Zhoushan Logistics support
Zhoushan RoRo 17,307.86 51.00 - Asset acquisition
China China services
Shenzhen Shenzhen Logistics support
Shenzhen Haixing Logistics Development Co., Ltd. 7,066.79 - 67.00 Asset acquisition
China China services
Business combination not
Zhanjiang Zhanjiang Logistics support
Zhanjiang Port 587,420.91 30.78 27.58 involving enterprises under
China China services common control
Business combination not
Zhanjiang Port International Container Terminal Zhanjiang Zhanjiang Logistics support 60,000.00 - 80.00 involving enterprises under
Co., Ltd. China China services
common control
Business combination not
Zhanjiang Port Petrochemical Terminal Co., Ltd. Zhanjiang Zhanjiang Logistics support
18,000.00 - 50.00 involving enterprises under
(Note 4) China China services
common control
Business combination not
Zhanjiang Zhanjiang Logistics support
China Ocean Shipping Tally Co., Ltd., Zhanjiang 300.00 - 84.00 involving enterprises under
China China services
common control
Business combination not
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support 5,000.00 - 100.00 involving enterprises under
Co., Ltd. China China services
common control
Business combination not
Zhanjiang Zhanjiang Logistics support
Zhanjiang Port Logistics 10,000.00 - 100.00 involving enterprises under
China China services
common control
Business combination not
Zhanjiang Zhanjiang Logistics support
Zhanjiang Port Haichuan Trading Co., Ltd. 200.00 - 100.00 involving enterprises under
China China services common control
Business combination not
Guangdong Zhanjiang Port Longteng Shipping Zhanjiang Zhanjiang Logistics support
9,000.00 - 51.00 involving enterprises under
Co., Ltd. China China services
common control
Business combination not
Logistics support
Ningbo Daxie (Note 5) Ningbo China Ningbo China 120,909.00 - 45.00 involving enterprises under
services
common control
Shantou Logistics support
Shantou Harbor Towage Service Co., Ltd. Shantou China 1,000.00 - 100.00 Established through investment
China services
Logistics support
Sanya Merchants Port Development Co., Ltd. Sanya China Sanya China 1,000.00 51.00 - Established through investment
services
Business combination not
Shenzhen Shenzhen Owning China
Malai Warehousing (Shenzhen) Co., Ltd HKD 1,600,000,000 - 100.00 involving enterprises under
China China Qianhai property
common control
Hong Kong Hong Kong Investment
Ports Development (Hong Kong) Limited 2,768,291.56 100.00 - Established through investment
China China holding
Property
Shunkong Port Foshan China Foshan China development and 6,122.45 51.00 - Asset acquisition
management
- 125 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 - Major subsidiaries - continued
Note 1: As at 19 June 2018, the Company and China Merchants Group (Hong Kong) Co., Ltd.
("CMHK") entered into an "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 CM Port in respect of its voting power of CM Port as entrusted,
and performs the voting as per the Company's opinion. In March 2022, the Company
transferred its 43.00% equity contribution in China Merchants Port Holdings Company
Limited to the wholly-owned subsidiary Ports Development (Hong Kong) Co., Ltd.
In the first half of 2023, the Ports Development (Hong Kong) Limited acquired the ordinary
shares of CM Port, totaling to 31,098,000 shares, from the secondary market. Upon
completion of the aforesaid acquisition, the ratio of ordinary shares held by the Group in
total issued ordinary shares of CM Port changed from 45.69% to 46.47%, and CMHK held
22.42% of total issued ordinary shares of CM Port. Therefore, the Company had total 68.89%
voting power and can exercise control over CM Port.
Note 2: The Group and China Merchants Zhangzhou Development Zone Co., Ltd. entered into an
"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 consolidation of the consolidated financial statements.
Note 3: The Group is entitled to the nomination of most members of the executive commission and
has control over Lome Container Terminal S.A. Therefore, the Group includes it in the
scope of consolidation of the consolidated financial statements.
Note 4: The Group holds 50.00% equity interest in Zhanjiang Port Petrochemical Terminal Co.,
Ltd. According to the agreement, the Group has control over Zhanjiang Port Petrochemical
Terminal Co., Ltd., and therefore includes it in the scope of consolidation of the
consolidated financial statements.
Note 5: Cyber Chic Company Limited, a subsidiary of the Company, entered into a cooperation
agreement with Ningbo Zhoushan. According to the cooperation agreement, Cyber Chic
Company Limited and Ningbo Zhoushan will negotiate and communicate to reach a
unanimous action before exercising their shareholder rights over Ningbo Daxie. If the
parties to the agreement fail to reach a consensus on matters such as the operation and
management of Ningbo Daxie, the decision will be based on the opinion of Cyber Chic
Company Limited. After the signing of the Cooperation Agreement, Cyber Chic Company
Limited and Ningbo Zhoushan together own more than 50.00% of the voting rights in
Ningbo Daxie. As a result, the Group is able to exercise control over Ningbo Daxie and
includes it in the scope of consolidation of the consolidated financial statements.
- 126 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Significant 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 at the end of the
the minority
the current declared in the current period
shareholders (%)
period current period
CM Port 53.53 2,083,878,816.30 128,046,891.56 69,526,390,590.61
- 127 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 significant non-wholly-owned subsidiaries
30/6/2023 31/12/2022
Name of the
subsidiary Current Non-current Current Non-current
Current assets Non-current assets Total assets Total liabilities Current assets Non-current assets Total assets Total liabilities
liabilities liabilities liabilities liabilities
CM Port 17,574,781,518.74 137,615,842,268.21 155,190,623,786.95 18,368,245,736.04 27,748,657,412.58 46,116,903,148.62 12,837,082,258.94 137,558,098,661.09 150,395,180,920.03 18,761,895,893.60 25,152,356,977.50 43,914,252,871.10
Current period Prior period
Name of the
Total comprehensive Cash flows from Total comprehensive Cash flows from
subsidiary Operating income Net profit Operating income Net profit
income operating activities income operating activities
CM Port 5,194,887,619.90 3,414,374,406.15 4,971,619,164.12 1,737,702,226.98 5,454,127,408.32 4,517,046,368.18 5,248,402,438.99 2,560,440,425.29
- 128 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
(1) Description of changes in ownership interests in subsidiaries
Details are set out in Note (X) 1 (1).
(2) Effect of on minority interests and owners' equity attributable to the Company
Item CM Port
Purchase cost
- Cash 315,490,758.22
- Non-cash assets -
Total purchase cost 315,490,758.22
Less: Share of net assets of subsidiaries calculated according to the proportion of
682,274,665.21
equity acquired
Difference -366,783,906.99
Including: Adjusted capital reserve 366,783,906.99
Adjusted surplus reserve -
Adjusted undistributed profit -
3. Interests in joint ventures or associates
(1) Significant joint ventures or associates
Shareholding ratio of the Accounting method
Principal place Place of
Investees Nature of business Group (% ) of investments in
of business registration
Direct Indirect associates
Associates
Shanghai International Port Shanghai, Port and container
Shanghai, PRC - 28.05 Equity method
(Group) Co., Ltd. PRC terminal business
Ningbo Zhoushan Ningbo PRC Ningbo PRC Water transport 20.98 2.10 Equity method
- 129 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(X) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associates
30/6/2023/ 31/12/2022/
Current period Prior period
Item
Ningbo Zhoushan
SIPG SIPG
(Note)
Current assets 52,474,978,601.95 25,812,218,000.00 46,525,054,810.02
Including: Cash and cash equivalents 32,950,527,813.29 12,382,499,000.00 26,843,326,028.04
Non-current assets 140,513,833,339.80 84,485,781,000.00 135,276,650,788.84
Total assets 192,988,811,941.75 110,297,999,000.00 181,801,705,598.86
Current liabilities 23,271,988,342.86 22,619,439,000.00 25,863,891,496.14
Non-current liabilities 43,742,185,804.09 10,190,878,000.00 34,770,765,671.21
Total liabilities 67,014,174,146.95 32,810,317,000.00 60,634,657,167.35
Minority interests 9,789,122,305.98 4,997,761,000.00 8,839,640,972.54
Equity attributable to shareholders of the Company 116,185,515,488.82 72,489,921,000.00 112,327,407,458.97
Share of net assets calculated based on the proportion
32,590,037,094.61 16,730,673,766.80 31,507,837,792.24
of ownership interests
Adjustments
- Goodwill 2,427,508,397.27 1,231,115,756.87 2,427,508,397.27
- Others 235,771,877.55 97,347,806.80 236,552,011.66
Book value of equity investments in associates 35,253,317,369.43 18,059,137,330.47 34,171,898,201.17
Fair value of publicly quoted equity investments in
34,289,392,436.25 15,219,317,690.55 34,877,210,592.30
associates
Operating income 16,111,541,335.25 12,227,049,000.00 20,094,438,005.89
Net profit 7,738,322,182.71 2,467,948,000.00 11,182,647,136.56
Other comprehensive income -25,369,452.55 37,289,000.00 -375,283,422.31
Total comprehensive income 7,712,952,730.16 2,505,237,000.00 10,807,363,714.25
Dividends received from associates in the current year 914,383,798.30 390,875,794.33 1,240,949,440.54
Note: The financial data of Ningbo Zhoushan is accurate to thousand.
5. Summarized financial information of insignificant associates and joint ventures
30/6/2023/ 31/12/2022/
Current period Prior period
Joint ventures:
Total carrying amount of investments 9,933,027,211.85 9,716,793,055.72
Aggregate of following items calculated based on the
proportion of ownership interest
- Net profit 169,975,433.54 197,699,052.34
- Other comprehensive income -1,446,746.71 -
- Total comprehensive income 168,528,686.83 197,699,052.34
Associates:
Total carrying amount of investments 31,730,788,256.37 48,475,602,662.16
Aggregate of following items calculated based on the
proportion of ownership interest
- Net profit 384,990,619.70 1,053,453,382.82
- Other comprehensive income 100,418,506.79 -96,067,083.31
- Total comprehensive income 485,409,126.49 957,386,299.51
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.
- 130 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 2023, the balance of the Group's assets and liabilities are both denominated in
functional currency or the currency that has pegged exchange rate against the functional currency,
except that the assets and liabilities set out below are recorded using the currency that is neither
functional currency nor currency that has pegged exchange rate against the functional currency.
Currency risk arising from the foreign currency balance of assets and liabilities may have impact
on the Group's performance.
Item 30/6/2023 31/12/2022
Cash and bank balances 294,222,461.72 799,833,569.05
Accounts receivable 41,958,030.12 29,766,083.42
Other receivables 1,237,917,013.99 360,531,571.16
Long-term receivables 204,770,635.01 -
Short-term borrowings 1,550,000,000.00 4,090,000,000.00
Accounts payable 1,243,429.31 2,372,883.60
Other payables 63,467,778.16 246,131,122.92
Non-current liabilities due within one year 678,665,305.54 670,000,000.00
Long-term borrowings 4,658,000,000.00 3,669,000,000.00
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 on 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 Effect on
Item Changes in exchange rate
Effect on profits shareholders' Effect on profits shareholders'
equity equity
All foreign currencies 5% increase against RMB -276,673,157.63 -276,673,157.63 -142,170,160.72 -142,170,160.72
All foreign currencies 5% decrease against RMB 276,673,157.63 276,673,157.63 142,170,160.72 142,170,160.72
All foreign currencies 5% increase against USD 4,281,779.89 4,281,779.89 5,174,284.81 5,174,284.81
All foreign currencies 5% decrease against USD -4,281,779.89 -4,281,779.89 -5,174,284.81 -5,174,284.81
All foreign currencies 5% increase against HKD 2,568,826.80 2,568,826.80 -208,703,403.25 -208,703,403.25
All foreign currencies 5% decrease against HKD -2,568,826.80 -2,568,826.80 208,703,403.25 208,703,403.25
5% increase against EUR
All foreign currencies 11,197,132.33 11,197,132.33 319,495.78 319,495.78
(including FCFA)
5% decrease against EUR
All foreign currencies -11,197,132.33 -11,197,132.33 -319,495.78 -319,495.78
(including FCFA)
- 131 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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) 37). 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 Effect on
interest rate Effect on profits Effect on profits
shareholders' equity shareholders' equity
Short-term borrowings
and long-term 1% increase -218,624,405.40 -218,624,405.40 -206,916,565.57 -206,916,565.57
borrowings
Short-term borrowings
and long-term 1% decrease 218,624,405.40 218,624,405.40 206,916,565.57 206,916,565.57
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 2023, the Group had total current liabilities in excess of total current assets of RMB
1,400,548,100.60. At 30 June 2023, the Group had available and unused line of credit and bonds
amounting to RMB 67,024,496,484.81, which is greater than the balance of the net current liabilities,
and may obtain fund support within the line of credit and bonds as necessary. Therefore, the Group's
management believes that the Group has no significant liquidity risk.
- 132 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 4,980,452,166.69 4,999,000,302.03 4,999,000,302.03 - -
Notes payable 39,276,000.00 39,276,000.00 39,276,000.00 - -
Accounts payable 531,218,999.62 531,218,999.62 531,218,999.62 - -
Other payables 3,165,399,094.34 3,165,399,094.34 3,165,399,094.34 - -
Non-current liabilities due
13,352,965,454.93 14,585,327,619.79 14,585,327,619.79 - -
within one year
Other current liabilities 4,500,231,313.76 4,523,438,051.61 4,523,438,051.61 - -
Long-term borrowings 16,083,606,258.60 17,365,388,360.36 - 14,677,028,731.77 2,688,359,628.59
Bonds payable 17,484,215,109.65 19,115,516,441.30 - 14,797,858,995.11 4,317,657,446.19
Lease liabilities 911,098,409.66 1,559,279,419.09 - 235,516,609.13 1,323,762,809.96
Other non-current liabilities 20,000,000.00 20,126,123.29 - 20,126,123.29 -
Long-term payables 3,921,876,042.13 3,923,378,023.26 - 685,702,684.83 3,237,675,338.43
(XII) DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Fair value at 30/6/2023
Item
Level 1 Level 2 Level 3 Total
Measurement at fair value
continuously
Held-for-trading financial assets - 4,645,336,576.09 - 4,645,336,576.09
Other non-current financial assets 943,850,357.04 - 27,865,811.69 971,716,168.73
Investments in other equity instruments - - 154,256,180.28 154,256,180.28
Total assets measured at fair value 943,850,357.04 4,645,336,576.09 182,121,991.97 5,771,308,925.10
continuously
2. Basis for determining the market price of items continuously measured at level 1 fair
value
The market prices of held-for- other non-current financial assets are determined at the closing price
of the equity instrument at Stock Exchange on 30 June 2023.
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
Item Valuation techniques Inputs
of the period
Held-for-trading financial assets 4,645,336,576.09 Cash flow discounting Expected rate of return
The fair value of debt instruments at fair value through profit or loss is determined using the cash
flow discounting approach. During the valuation, the Group adopts the expected rate of return as
the input.
- 133 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Other equity instrument investments 154,256,180.28 Net worth method Carrying amount
Other non-current financial assets 2,000,000.00 Cash flow discounting Discount rate
Other non-current financial assets 723,955.24 Net worth method Carrying amount
Listed company
Other non-current financial assets 25,141,856.45 Share price
comparison 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.
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of the Proportion of the
Related party Place of Nature of Company's ownership Company's voting
Name of the parent Type of the entity Issued share capital
relationship registration business interests held by the power held by the
parent (%) parent (%)
Broadford Global Private limited company Investment
Parent company Hong Kong HKD 21,120,986,262 2.21 63.01 (Note)
Limited (share limited) holding
Note: Broadford Global Limited directly holds 2.21% equity of the Company, and indirectly holds
14.84% and 45.96% equity of the Company through the subsidiaries China Merchants
Gangtong Development (Shenzhen) Co., Ltd. and China Merchants Port Investment
Development Co., Ltd. respectively.
The ultimate controlling shareholder of the Company is China Merchants Group.
- 134 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
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 associates that have related party transactions with the Group in the current
period, or formed balances of related party transactions with the Group in the prior period are as
follows:
Name of joint ventures or associates Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Guizhou East Land Port Operation Co., Ltd. Joint venture
Qingdao Qianwan United Container Terminal Co., Ltd. Joint venture
Qingdao Qianwan West Port United Wharf Co., Ltd. Joint venture
Qingdao Qianwan New United Container Terminal Co., Ltd. Joint venture
COSCO Logistics (Zhanjiang) Co., Ltd. Joint venture
China Ocean Shipping Agency (Zhanjiang) Co., Ltd Joint venture
Yantai Port Group Laizhou Port Co., Ltd. Joint venture
Qingdao Wutong Century Supply Chain Co., Ltd. Joint venture
Antong Holdings and its subsidiaries Associate
Great Horn Development Company 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
Ningbo Zhoushan and its subsidiaries 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
Lac Assal Investment Holding Company Limited Associate
CM Port Chuangrong (Shenzhen) Technology Co., Ltd. Associate
Ningbo Port Container Transportation Co., Ltd. Associate
Shenzhen Chiwan Oriental Logistics Co., Ltd. Associate
New Land-Sea Corrodor Operation (Zhanjiang) Co., Ltd. Associate
Associate, controlled by the same
Liaoning Port and its subsidiaries
ultimate controlling shareholder
- 135 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Zhanjiang Infrastructure Construction Investment Group Co., Ltd. Minority shareholder of subsidiary
Zhoushan Blue Ocean Investment Co., Ltd. Minority shareholder of subsidiary
Sri Lanka Ports Authority Minority shareholder of subsidiary
Guangdong Shunkong City Investment Real Estate Co., Ltd. Minority shareholder of subsidiary
Baosteel Zhanjiang Iron & Steel Co., Ltd. Minority shareholder of subsidiary
China Merchants Union （BVI） Limited Minority shareholder of subsidiary
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
Shenzhen Nanyou (Holdings) 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
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 Real Estate 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 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 Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Shanghai) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Tianjin) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shekou Industrial Zone Holdings 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
China Merchants Zhangzhou Development Zone Power Supply Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Securities 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 Agency Guangdong Co., Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Tally Shenzhen Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Central China Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Shipping Limited Controlled by the same ultimate controlling shareholder
Sinoway Shipping Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Heavy Industry (Jiangsu) Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shantou Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Apartment Development (Shenzhen) 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 Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Ningbo Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines (Hong Kong) Company Limited Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines 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
Dalian Port Group Corporation Limited Controlled by the same ultimate controlling shareholder
Dalian Container Terminal Co., Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen West Port Security Service Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Container Controlled by the same ultimate controlling shareholder
Jifa Logistics Controlled by the same ultimate controlling shareholder
Dalian Port Communications Engineering Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Jifa South Coast International Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
- 136 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Dalian Jifa Port Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Xingang Kuangshi Terminals Co., Ltd. Controlled by the same ultimate controlling shareholder
Dandong Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Investment Development (Hong Kong) Limited Controlled by the same ultimate controlling shareholder
Ocean Driller III Limited Controlled by the same ultimate controlling shareholder
Orienture Holdings Company Limited Controlled by the same ultimate controlling shareholder
Shenzhen Zhonghang Buildings Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Bonded Zone Yongdexin Real Estate Development & Construction
Controlled by the same ultimate controlling shareholder
Co., Ltd.
Khor Ambado FZCo Significantly influenced by the ultimate controlling shareholder
China Merchants Bank Co., Ltd. Significantly influenced by the ultimate controlling shareholder
China Merchants (Shenzhen) Power Supply Co., Ltd. Significantly influenced by the ultimate controlling shareholder
Shenzhen Wanhai Building Management Co., Ltd. Significantly influenced by the ultimate controlling shareholder
5. Related party transactions
(1) Rendering and receipt of services
Pricing method
and decision-
Content of
Related parties making process of Current period Prior period
transaction
related
transactions
Receipt of services:
Purchase of
China M erchants Bank Co., Ltd. Negotiation 2,080,000,000.00 1,000,000,000.00
structured deposits
Shenzhen Bay Electricity Industry Co., Ltd. Service expenditure Negotiation 26,554,647.89 27,561,760.64
Shenzhen Nanyou (Holdings) Ltd. Service expenditure Negotiation 18,821,945.88 -
China M erchants Group Finance Company Limited Interest payments Negotiation 12,606,686.11 44,331,121.77
China M erchants (Shenzhen) Power Supply Co., Ltd. Property utilities Negotiation 8,840,100.79 -
Qingdao Qianwan West Port United Wharf Co., Ltd. Service expenditure Negotiation 7,940,246.77 8,365,470.62
China M erchants Bank Co., Ltd. Interest payments Negotiation 7,939,144.17 4,008,117.76
Ningbo Zhoushan and its subsidiaries Service expenditure Negotiation 6,331,246.17 7,859,747.95
China M erchants Property Management (Shenzhen)
Service expenditure Negotiation 5,330,755.99 1,921,021.77
Co., Ltd.
Shenzhen West Port Security Service Co., Ltd. Service expenditure Negotiation 5,307,294.72 5,661,635.33
Sinoway Shipping Ltd. Service expenditure Negotiation 4,177,670.01 -
Yiu Lian Dockyards Limited Service expenditure Negotiation 4,119,568.07 3,807,933.17
Shenzhen Chiwan Oriental Logistics Co., Ltd. Service expenditure Negotiation 3,506,393.15 4,263,289.81
Nanshan Group and its subsidiaries Service expenditure Negotiation 2,819,999.34 9,105,672.16
China M erchants Zhangzhou Development Zone Power
Service expenditure Negotiation 2,689,704.35 2,443,269.20
Supply Co., Ltd.
Hoi Tung (Shanghai) Company Limited Service expenditure Negotiation 2,045,941.84 3,971,930.07
Yingkou Port Group and its subsidiaries Service expenditure Negotiation 1,779,632.70 2,043,787.06
Shenzhen Zhonghang Buildings Technology Co., Ltd. Service expenditure Negotiation 1,309,197.64 -
China M arine Shipping Agency Shenzhen Co., Ltd. Service expenditure Negotiation 1,146,792.55 1,323,605.65
China Ocean Shipping Tally Shenzhen Co., Ltd. Service expenditure Negotiation 852,794.75 1,182,219.25
Liaoning Port and its subsidiaries Service expenditure Negotiation 742,931.66 -
COSCO Logistics (Zhanjiang) Co., Ltd. Service expenditure Negotiation 465,252.15 1,278,998.39
China M arine Shipping Guangdong Co., Ltd. Service expenditure Negotiation 6,037.73 2,578,833.07
China M erchant Food (China) Co., Ltd. Service expenditure Negotiation - 219,125.15
Other related parties Service expenditure Negotiation 6,533,670.99 6,018,119.16
Total 2,211,867,655.42 1,137,945,657.98
- 137 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 services - continued
Pricing method and
Content of decision-making
Related parties Current period Prior period
transaction process of related
transactions
Rendering of services:
COSCO Logistics (Zhanjiang) Co., Ltd. Service revenue Negotiation 110,744,402.53 93,854,144.35
Terminal Link SAS Interest income Negotiation 88,397,856.38 81,787,132.97
Antong Holdings Co., Ltd. and its subsidiaries Service revenue Negotiation 17,464,158.08 57,252,837.30
China Ocean Shipping Agency (Zhanjiang) Co., Ltd. Service revenue Negotiation 34,373,990.47 29,767,054.90
Liaoning Port and its subsidiaries Service revenue Negotiation 29,653,667.27 50,771,513.32
China M erchants Bank Co., Ltd. Interest income Negotiation 29,498,613.99 23,990,575.31
Qingdao Qianwan United Container Terminal Co., Ltd. Service revenue Negotiation 28,810,177.52 27,999,029.61
Port of Newcastle and its subsidiaries Interest income Negotiation 24,964,528.83 30,137,869.75
China M erchants Group Finance Company Limited Interest income Negotiation 14,717,409.20 10,308,105.49
China M arine Shipping Agency Guangdong Co., Ltd. Service revenue Negotiation 14,170,082.79 28,379,378.60
Yingkou Port Group and its subsidiaries Service revenue Negotiation 13,685,712.13 26,048,896.47
China M erchants International Shipping Agency
Service revenue Negotiation 13,335,734.13 14,952,848.57
(Shenzhen) Co., Ltd.
Qingdao Qianwan West Port United Wharf Co., Ltd. Service revenue Negotiation 8,873,051.78 2,006,982.68
Yiu Lian Dockyards (Shekou) Limited Service revenue Negotiation 6,049,745.64 7,624,158.50
Qingdao Bonded Logistics Park Sinotrans Warehousing
Service revenue Negotiation 5,930,892.23 3,183,820.61
Logistics Co., Ltd.
CM Port Chuangrong (Shenzhen) Technology Co., Ltd. Service revenue Negotiation 5,399,572.64 4,622,170.92
Sinotrans Shenzhen Qianhai Supply Chain
Service revenue Negotiation 5,122,531.86 1,055,634.00
M anagement Ltd.
Shenzhen Baohong Technology Co., Ltd. Service revenue Negotiation 4,665,334.02 1,051,551.12
Sinotrans Container Lines Co., Ltd. Service revenue Negotiation 4,361,180.07 4,203,154.01
China M erchants International Cold Chain (Shenzhen) Service revenue Negotiation 3,573,112.10 2,053,124.00
Company Limited
China Ocean Shipping Agency Shenzhen Service revenue Negotiation 3,530,714.66 2,841,490.56
Sinotrans Central China Co., Ltd. Service revenue Negotiation 3,529,371.64 4,226,183.28
New Land-Sea Corrodor Operation (Zhanjiang) Co., Ltd. Service revenue Negotiation 3,141,567.23 -
China M erchant Food (China) Co., Ltd. Service revenue Negotiation 2,910,341.70 -
China Traffic Import and Export Co., Ltd. Service revenue Negotiation 2,736,536.28 -
EuroAsia Dockyard Enterprise and Development Limited Service revenue Negotiation 2,687,908.22 -
China M arine Shipping Agency Shenzhen Co., Ltd. Service revenue Negotiation 2,560,367.14 2,397,694.66
Qingdao Sinotrans M ining Technology Co., Ltd. Service revenue Negotiation 2,375,278.56 -
Sinoway Shipping Ltd. Service revenue Negotiation 2,310,227.52 6,695,198.11
Liaoning Port Group Co., Ltd. Service revenue Negotiation 2,238,202.80 4,971,803.76
China Yangtze River Shipping Co.,Ltd. Service revenue Negotiation 1,981,380.75 2,750,508.20
Qingdao Sinotrans Supply Chain M anagement Co., Ltd. Service revenue Negotiation 1,762,582.00 -
Qingdao Qianwan New United Container Terminal
Service revenue Negotiation 1,569,368.32 1,538,691.31
Co., Ltd.
China M erchants Port Investment Development
Service revenue Negotiation 1,554,377.36 1,327,585.66
Company Limited
Qingdao Wutong Century Supply Chain Co., Ltd. Service revenue Negotiation 1,341,694.24 -
China M erchants Securities Co., Ltd. Service revenue Negotiation 1,333,059.69 -
Sinotrans Container Lines (Hong Kong)
Service revenue Negotiation 1,245,082.16 1,694,057.81
Company Limited
Nanshan Group and its subsidiaries Service revenue Negotiation 1,125,136.47 -
Yantai Port Group Laizhou Port Co., Ltd. Service revenue Negotiation 1,037,735.84 1,037,735.84
Shantou Zhonglian Tally Co., Ltd Service revenue Negotiation 944,703.77 1,177,326.80
Shantou International Container Terminals Limited Service revenue Negotiation 541,094.54 481,962.75
China M erchants Heavy Industry (Jiangsu) Co., Ltd. Service revenue Negotiation 444,576.29 299,871.32
Sinotrans Shantou Co., Ltd. Service revenue Negotiation 374,736.65 -
China M arine Shipping Guangdong Co., Ltd. Service revenue Negotiation 274,751.81 263,547.18
Guizhou East Land Port Operation Co., Ltd. Service revenue Negotiation 229,699.99 423,517.06
South China Sinotrans Supply Chain M anagement
Service revenue Negotiation 2,983.02 886,573.85
Co., Ltd.
China M arine Shipping Agency Ningbo Co., Ltd. Service revenue Negotiation - 106,096,787.01
Guizhou Qiandongnan Continental Land Port Operation
Service revenue Negotiation - 1,447,018.87
Co., Ltd.
Sinotrans (HK) Shipping Limited Service revenue Negotiation - 66,202.55
Other related parties Service revenue Negotiation 10,917,789.91 5,978,857.08
Other related parties Interest income Negotiation 609,957.55 777,053.20
Total 519,102,979.77 648,429,649.34
- 138 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
The Group as the lessor:
Pricing method and
Lease income Lease income
Type of leased decision-making
Name of the lessee recognized in the recognized in the prior
assets process of related
current period period
transactions
Port and terminal
Qingdao Qianwan West Port United Wharf Co., Ltd. Negotiation 6,848,492.44 5,069,188.08
facilities
Qingdao Bonded Logistics Park Sinotrans Warehousing Port and terminal
Logistics Co., Ltd. facilities Negotiation 3,449,293.79 1,914,400.91
China M erchant Food (China) Co., Ltd. Buildings Negotiation 2,910,341.70 2,773,119.96
China Traffic Import and Export Co., Ltd. Buildings Negotiation 2,736,536.28 2,736,536.28
Port and terminal
Qingdao Sinotrans M ining Technology Co., Ltd. Negotiation 2,375,278.56 2,375,278.56
facilities
Qingdao Qianwan United Container Terminal Co., Ltd. Buildings Negotiation 1,661,969.04 1,453,403.34
Port and terminal
Qingdao Sinotrans Supply Chain M anagement Co., Ltd. Negotiation 1,444,859.56 561,911.99
facilities
CM Port Chuangrong (Shenzhen) Technology Co., Ltd. Port and terminal Negotiation 1,430,912.28 -
facilities
Port and terminal
Qingdao Wutong Century Supply Chain Co., Ltd. Negotiation 1,341,694.24 -
facilities
China M erchants Securities Co., Ltd. Buildings Negotiation 1,333,059.69 1,270,897.29
Nanshan Group and its subsidiaries Buildings Negotiation 1,125,136.47 1,135,355.02
Yiu Lian Dockyards (Shekou) Limited Buildings Negotiation 1,122,531.42 1,091,340.94
Buildings, port
Other related parties and terminal Negotiation 4,228,541.56 3,151,714.13
facilities
Total 32,008,647.03 23,533,146.50
- 139 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 lessee:
Rent for short-term leases and
Variable lease payment not
leases of low-value assets that is Interest expenses on lease liabilities
included in the measurement of Rent paid Increase in right-of-use assets
accounted for using simplified assumed
lease liabilities
Name of the lessor Type of leased assets approach
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 period prior period current period prior period current period prior period current period prior period current period prior period
Shenzhen Qianhai Shekou Free Trade
Port and terminal facilities 1,984,330.20 - - - 2,103,390.00 - - - - -
Investment Development Co. Ltd.
Shenzhen Qianhai Shekou Free Trade
Land use rights 1,984,330.20 - - - 1,984,330.19 - - - - -
Investment Development Co. Ltd.
Shenzhen Nanyou (Holdings) Ltd. Land use rights 997,776.60 997,776.60 - - 997,776.60 873,054.50 - - - -
China Merchants International Cold Chain
(Shenzhen) Company Limited Port and terminal facilities 148,500.00 - - - 946,881.45 29,492,822.34 21,273.00 3,317,801.93 - -
China Merchants Apartment Development
Buildings 72,331.43 - - - 71,337.15 29,249,729.17 - 4,141,464.12 - -
(Shenzhen) Co., Ltd.
China Merchants International Cold Chain Buildings - 3,262,409.54 - 1,729,077.06 - 1,729,077.06 - - - -
(Shenzhen) Company Limited
China Merchants Commercial Property
Buildings - 188,604.84 - - 3,190,516.56 199,921.13 277,944.19 - 4,809,924.03 -
Investment (Shenzhen) Co., Ltd.
Dalian Port Group Corporation Limited Buildings - 71,337.12 - 71,337.12 40,000.00 74,904.00 3,316.24 - - -
China Merchants Finance Lease (Tianjin) Co., Ltd. Port and terminal facilities - 11,040.00 - - 19,394,624.82 242,028.00 2,195,437.17 3,915,561.44 - 81,529,585.77
Nanshan Group and its subsidiaries Others - - - - 33,509,385.63 32,049,532.79 2,551,815.97 2,248,991.92 - -
China Merchants Finance Lease (Shanghai) Co., Ltd. Port and terminal facilities - - - - 29,151,135.25 - 1,841,875.41 5,682.95 - -
Machinery and equipment,
China Merchants Finance Lease (Shanghai) Co., Ltd. - - - - 28,924,934.03 1,773,985.94 2,720,974.54 141,650.14 - 1,079,443.53
port and terminal facilities
China Merchants Tongshang Finance Lease Co., Ltd. Machinery and equipment - - - - 23,190,959.27 1,097,438.83 905,080.70 127,512.83 - 2,377,742.19
China Merchants Shekou Industrial Zone
Port and terminal facilities - - - - 15,292,027.67 - 588,203.18 32,692.70 - -
Holdings Co., Ltd.
EuroAsia Dockyard Enterprise and Port and terminal facilities - - - - 7,571,928.07 18,076,245.95 332,056.61 2,033,491.49 - -
Development Limited
China Merchants Shekou Industrial Zone
Land use rights - - - - 3,057,533.64 7,943,326.82 195,881.64 298,580.40 - -
Holdings Co., Ltd.
Baosteel Zhanjiang Iron & Steel Co., Ltd. Machinery and equipment - - - - 1,800,000.00 - 23,339.88 - 5,119,357.99 -
Nanshan Group and its subsidiaries Buildings - - - - 1,381,953.01 - 47,911.96 4,862.54 33,834.89 -
Shenzhen Wanhai Building Management Co., Ltd. Buildings - - - - 610,722.00 - 33,840.58 - - -
Dalian Bonded Zone Yongdexin Real Estate
Buildings - - - - 206,927.36 - - - - -
Development&Construction Co.,Ltd.
Nanshan Group and its subsidiaries Port and terminal facilities - - - - 54,039.19 - 4,069.43 299,721.13 - 17,330,062.14
Dalian Port Communications Engineering Co., Ltd. Buildings - - - - 25,000.00 3,356,220.00 4,842.09 125,995.63 - -
Shenzhen Qianhai Shekou Free Trade
Buildings - - - - - - - - - 66,214,506.44
Investment Development Co. Ltd.
Total 5,187,268.43 4,531,168.10 - 1,800,414.18 173,505,401.89 126,158,286.53 11,747,862.59 16,694,009.22 9,963,116.91 168,531,340.07
- 140 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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:
Has the
Guaranteed Commencement Maturity guarantee been
Secured party Credit line
amount date date completed or
not
For the period from 1 January to 30 June 2023
Khor Ambado FZCo (Note 1) 208,103,040.00 124,232,980.55 24 May 2019 2032 No
Terminal Link SAS (Note 2) 116,841,186.00 116,841,186.00 25 January 2023 2030 No
Terminal Link SAS (Note 2) 68,978,915.47 68,978,915.47 11 June 2013 2033 No
Total 393,923,141.47 310,053,082.02
For the period from 1 January to 30 June 2022
Khor Ambado FZCo 192,528,000.00 115,901,056.33 24 May 2019 2032 No
Terminal Link SAS 68,508,952.47 68,508,952.47 11 June 2013 2033 No
Total 261,036,952.47 184,410,008.80
Note 1: Khor Ambado FZCo is a related company of the Group's common ultimate controlling
shareholder. The Group provides guarantee for its bank loan financing and other liabilities,
with actual guaranteed amount of RMB 124,232,980.55 as at 30 June 2023.
Note 2: 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 provide
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 associate. The actual
guaranteed amount is RMB 185,820,101.47 as at 30 June 2023. If any guarantee liability
occurs, the Group will compensate CMA CGM S.A.
(4) Borrowings and loans with related parties
Related parties Amount Commencement date Maturity date Description
For the period from 1 January to 30 June 2023
Borrowings
Ocean Driller III Limited 345,115,822.78 Actual borrowing date Agreed repayment date Other current liabilities
China M erchants Group Finance
199,584,899.98 Actual borrowing date Agreed repayment date Long-term borrowings
Company Limited
China M erchants Group Finance
113,176,240.10 Actual borrowing date Agreed repayment date Long-term borrowings
Company Limited
China M erchants Bank Company Limited 40,035,555.56 Actual borrowing date Agreed repayment date Long-term borrowings
China M erchants Bank Company Limited 30,026,666.67 Actual borrowing date Agreed repayment date Long-term borrowings
China M erchants Bank Company Limited 30,024,583.33 Actual borrowing date Agreed repayment date Short-term borrowings
China M erchants Group Finance
22,279,250.01 Actual borrowing date Agreed repayment date Short-term borrowings
Company Limited
China M erchants Group Finance
15,248,987.50 Actual borrowing date Agreed repayment date Short-term borrowings
Company Limited
China M erchants Bank Company Limited 10,010,138.88 Actual borrowing date Agreed repayment date Short-term borrowings
China M erchants Group Finance
4,400,000.00 Actual borrowing date Agreed repayment date Long-term borrowings
Company Limited
China M erchants Group Finance 1,037,232.14 Actual borrowing date Agreed repayment date Long-term borrowings
Company Limited
Total 810,939,376.95
- 141 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions – continued
(5) Compensation for key management personnel
Item Current period Prior period
Compensation for key management personnel 8,972,032.11 7,241,617.16
6. Amounts due from/to related parties
(1) Amounts due from related parties
Item Related parties 30/6/2023 31/12/2022
China Merchants Bank Co., Ltd. 3,456,133,319.05 3,387,973,124.59
Cash and bank
China Merchants Group Finance Company Limited 913,608,945.27 1,841,698,554.32
balances
Total 4,369,742,264.32 5,229,671,678.91
Held-for-trading
China Merchants Bank Co., Ltd. 200,045,205.48 900,061,111.11
financial assets
Ningbo Zhoushan and its subsidiaries 37,804,919.25 20,289,988.06
Antong Holdings and its subsidiaries 32,409,055.59 8,395,245.04
COSCO Logistics (Zhanjiang) Co., Ltd. 23,945,432.88 4,045,734.88
Qingdao Qianwan West Port United Wharf Co., Ltd. 11,913,130.47 3,749,064.99
Liaoning Port and its subsidiaries 4,184,092.39 3,680,900.00
Qingdao Qianwan United Container Terminal Co., Ltd. 6,806,195.28 1,729,380.01
Dalian Container Terminal Co., Ltd. 5,242,584.00 1,957,840.00
China Marine Shipping Agency Guangdong Co., Ltd. 4,030,535.11 17,505,768.03
Sinoway Shipping Ltd. 3,864,727.49 4,564,389.71
Yiu Lian Dockyards (Shekou) Limited 3,406,789.70 3,554,521.60
China Merchants International Shipping Agency
3,360,052.88 1,530,505.68
(Shenzhen) Co., Ltd.
Khor Ambado FZCo 3,218,054.14 3,108,610.49
Qingdao Sinotrans Mining Technology Co., Ltd. 2,494,042.50 -
Liaoning Port Group Co., Ltd. 1,741,331.00 1,821,581.00
China Ocean Shipping Agency Shenzhen Co. Ltd. 1,884,463.67 758,113.05
Accounts
Sinotrans Container Lines Co., Ltd. 1,876,052.25 1,287,851.75
receivable
Dalian Jifa South Coast International Logistics Co., Ltd. 1,412,854.00 1,839,478.79
Qingdao Sinotrans Supply Chain Management Co., Ltd. 1,318,977.83 -
China Marine Shipping Agency Shenzhen Co., Ltd. 1,142,726.73 -
Nanshan Group and its subsidiaries 1,128,726.86 1,404,627.23
Yingkou Port Group and its subsidiaries 905,891.08 160,491.00
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 824,921.08 -
Dandong Port Group Co., Ltd. 699,129.77 -
Sinotrans (HK) Shipping Limited 696,710.99 375,748.78
Dalian Jifa Port Logistics Co., Ltd. 237,340.00 2,220,941.63
Great Horn Development Company FZCo - 2,157,859.50
PORT DE DJIBOUTI S.A. - 1,770,749.55
South China Sinotrans Supply Chain Management
- 659,854.40
Co., Ltd.
China Marine Shipping Agency Ningbo Co., Ltd. - 164,981.21
Other related parties 10,909,930.40 13,549,055.64
Total 167,458,667.34 102,283,282.02
- 142 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 parties 30/6/2023 31/12/2022
SIPG 914,383,798.30 -
Nanshan Group and its subsidiaries 240,591,000.00 240,591,000.00
Qingdao Qianwan United Container Terminal Co., Ltd. 50,000,000.00 50,000,000.00
Liaoning Port and its subsidiaries 47,754,255.87 -
Dividends
Merchants Port City 41,847,044.77 41,847,044.77
receivable
Tin-Can Island Container Terminal Ltd 32,242,479.35 65,121,449.40
COSCO Logistics (Zhanjiang) Co., Ltd. 18,449,001.16 18,449,001.16
Other related parties 983,074.53 232,047.23
Total 1,346,250,653.98 416,240,542.56
Shenzhen Nanyou (Holdings) Ltd. 30,639,652.92 6,725,260.86
PORT DE DJIBOUTI S.A. 25,682,093.92 24,808,664.70
Ocean Driller III Limited 17,664,009.99 -
Shenzhen Qianhai Shekou Free Trade Investment
6,310,000.00 6,310,000.00
Development Co. Ltd.
Zhoushan Blue Ocean Investment Co., Ltd. 4,996,989.39 4,996,989.39
China Merchants Shenzhen Ro-Ro Shipping Co., Ltd. 2,899,163.95 2,899,163.95
Nanshan Group and its subsidiaries 1,625,476.17 1,009,839.70
EuroAsia Dockyard Enterprise and Development
Other 1,556,035.29 1,510,055.76
Limited
receivables
Liaoning Port and its subsidiaries 1,242,721.60 -
China Merchants Commercial Property Investment
1,166,408.40 1,132,846.40
(Shenzhen) Co., Ltd.
Yingkou Port Group and its subsidiaries 721,626.07 -
Dalian Port Group Corporation Limited 151,000.00 -
Liaoning Port Group Co., Ltd. 45,000.00 -
Chu Kong River Trade Terminal Co., Ltd. - 36,053,588.00
Other related parties 5,198,438.65 3,550,453.73
Total 99,898,616.35 88,996,862.49
Nanshan Group and its subsidiaries - 9,000.00
Prepayments Other related parties 19,146.00 6,351.75
Total 19,146.00 15,351.75
Terminal Link SAS 49,092,591.98 46,409,214.10
Non-current China Merchants Finance Lease (Shanghai) Co., Ltd. 6,200,000.00 -
assets due
China Merchants Finance Lease (Tianjin) Co., Ltd. 3,800,000.00 3,800,000.00
within one
Port of Newcastle and its subsidiaries - 852,919,208.25
year
Total 59,092,591.98 903,128,422.35
Terminal Link SAS 3,239,076,603.34 2,931,108,250.96
Port of Newcastle and its subsidiaries 897,930,437.13 -
Long-term Tianjin Haitian Bonded Logistics Co., Ltd. 34,300,000.00 34,300,000.00
receivables China Merchants Finance Lease (Tianjin) Co., Ltd. 678,959.27 659,515.88
China Merchants Finance Lease (Shanghai) Co., Ltd. - 6,200,000.00
Total 4,171,985,999.74 2,972,267,766.84
- 143 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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
Item Related parties 30/6/2023 31/12/2022
China Merchants Group Finance Company Limited 50,041,666.68 413,453,629.50
Short-term
China Merchants Bank Co., Ltd. 55,048,888.87 15,015,583.33
borrowings
Total 105,090,555.55 428,469,212.83
Ocean Driller III Limited 359,485,676.59 -
Other current
China Merchants Group Finance Company Limited - 10,056,575.34
liabilities
Total 359,485,676.59 10,056,575.34
Antong Holdings and its subsidiaries 16,948,161.45 16,948,161.45
Ningbo Zhoushan and its subsidiaries 14,691,952.29 16,725,206.29
Shenzhen Bay Electricity Industry Co., Ltd. 13,411,684.81 4,920,501.06
Qingdao Qianwan West Port United Wharf Co., Ltd. 10,951,732.69 8,007,474.16
Nanshan Group and its subsidiaries 6,475,661.69 4,259,215.79
EuroAsia Dockyard Enterprise and Development Limited 3,176,882.16 2,363,408.70
Ningbo Port Container Transportation Co., Ltd. 2,729,528.00 -
Accounts
China Merchants Port Investment Development
payable 1,160,252.40 1,203,536.99
Company Limited
Hoi Tung (Shanghai) Company Limited 950,288.08 -
Yiu Lian Dockyards Limited 746,718.81 792,077.94
Sinoway Shipping Ltd. - 4,886,700.00
China Marine Shipping Agency Shenzhen Co., Ltd. - 248,149.17
Other related parties 3,176,891.79 4,212,603.81
Total 74,419,754.17 64,567,035.36
China Merchants Port Investment Development
7,075,471.70 -
Company Limited
Receipts in Qingdao Qianwan United Container Terminal Co., Ltd. 1,520,491.45 -
advance Qingdao Wutong Century Supply Chain Co., Ltd. 285,725.30 196,301.30
Other related parties 80,300.02 160,600.00
Total 8,961,988.47 356,901.30
Liaoning Port and its subsidiaries 11,980,719.61 -
Antong Holdings and its subsidiaries 5,999,790.00 1,468,616.91
Liaoning Port Group Co., Ltd. 5,175,924.46 -
COSCO Logistics (Zhanjiang) Co., Ltd. 1,505,816.58 1,275,397.28
China Merchants International Shipping Agency
837,801.45 -
(Shenzhen) Co., Ltd.
Contract
Dalian Container Terminal Co., Ltd. - 9,679,785.44
liabilities
Dandong Port Group Co., Ltd. - 3,842,709.07
Qingdao Qianwan United Container Terminal Co., Ltd. - 1,556,753.55
Yingkou Xingang Kuangshi Terminals Co., Ltd. - 1,514,844.30
Qingdao Sinotrans Supply Chain Management Co., Ltd. - 368,484.60
Other related parties 2,954,444.57 2,508,480.44
Total 28,454,496.67 22,215,071.59
- 144 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 parties 30/6/2023 31/12/2022
China Merchants Union （BVI） Limited 495,615,718.43 -
China Merchants Zhangzhou Development Zone Co., Ltd. 40,000,000.00 20,000,000.00
Zhanjiang Infrastructure Construction Investment Group
34,598,645.00 41,400,234.06
Co., Ltd.
Dalian Port Container 27,160,696.61 14,000,000.00
China Merchants Investment Development (Hong Kong)
Dividends payable 13,036,489.20 -
Limited
Jifa Logistics 11,575,104.42 3,000,000.00
Yingkou Port Group and its subsidiaries 5,372,456.78 -
Orienture Holdings Company Limited 1,656,900.00 -
Sri Lanka Ports Authority - 10,446,900.00
Total 629,016,010.44 88,847,134.06
Lac Assal Investment Holding Company Limited 65,465,131.55 47,359,371.46
China Merchants Real Estate (Shenzhen) Co., Ltd. 10,079,369.00 10,079,369.00
China Merchants Port Investment Development Company
3,367,817.67 12,730,734.37
Limited
Zhanjiang Xiagang United Development Co., Ltd. 3,089,624.74 4,130,081.82
China Merchants Commercial Property Investment (Shenzhen)
2,468,481.60 1,439,753.57
Co., Ltd.
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1,668,710.30 3,750,000.03
Other payables China Merchant Food (China) Co., Ltd. 1,069,017.00 1,628,515.12
China Traffic Import and Export Co., Ltd. 1,055,975.76 1,069,017.00
Hoi Tung (Shanghai) Company Limited 901,185.39 -
Shenzhen Baohong Technology Co., Ltd. 749,269.39 3,263,853.86
Antong Holdings and its subsidiaries 62,532.00 -
China Merchants Real Estate Co., Ltd. - 6,420,820.68
China Merchants Shekou Industrial Zone Holdings Co., Ltd. - 749,269.39
Other related parties 5,480,784.29 6,732,058.14
Total 95,457,898.69 99,352,844.44
China Merchants Group Finance Company Limited 314,129,814.17 110,838,087.45
China Merchants Finance Lease (Shanghai) Co., Ltd. 102,770,924.39 103,236,707.51
Nanshan Group and its subsidiaries 65,457,241.76 65,165,836.97
China Merchants Finance Lease (Tianjin) Co., Ltd. 32,122,756.22 32,339,542.44
China Merchants Tongshang Finance Lease Co., Ltd. 22,829,945.85 45,115,824.42
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 21,660,807.10 37,012,422.69
Non-current China Merchants Bank Co., Ltd. 11,349,279.17 11,362,639.43
liabilities due EuroAsia Dockyard Enterprise and Development Limited 7,450,087.55 14,255,883.08
within one China Merchants Commercial Property Investment (Shenzhen)
year 6,154,654.29 -
Co., Ltd.
Baosteel Zhanjiang Iron & Steel Co., Ltd. 1,651,756.23 -
China Merchants International Cold Chain (Shenzhen)
881,354.93 1,050,270.17
Company Limited
Guangdong Shunkong City Investment Real Estate Co. Ltd. - 3,162,000.00
Other related parties 1,460,695.52 1,962,815.09
Total 587,919,317.18 425,502,029.25
- 145 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 parties 30/6/2023 31/12/2022
Other
non-current Nanshan Group and its subsidiaries 1,135,387.64 -
liabilities
Nanshan Group and its subsidiaries 33,064,089.35 65,431,073.09
China Merchants Finance Lease (Shanghai) Co., Ltd. 25,000,000.00 75,833,546.45
China Merchants Commercial Property Investment
3,235,085.58 -
(Shenzhen) Co., Ltd.
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 3,024,175.27 5,993,041.70
Lease liabilities
China Merchants Finance Lease (Tianjin) Co., Ltd. - 15,833,403.29
China Merchants International Cold Chain (Shenzhen)
- 253,362.41
Company Limited
Other related parties 248,727.97 803,148.25
Total 64,572,078.17 164,147,575.19
China Merchants Group Finance Company Limited 547,218,656.91 445,490,692.58
Long-term
China Merchants Bank Co., Ltd. 351,500,000.00 325,000,000.00
borrowings
Total 898,718,656.91 770,490,692.58
Long-term payables China Merchants Finance Lease (Tianjin) Co., Ltd. 41,198,052.99 41,052,268.30
(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 RMB 14.28 to RMB 16.53;
of the Company's share options outstanding at the
remaining contractual life is 43 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
- 146 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XIV) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments
The method of determining the fair value of equity The Black-Scholes model is adopted to estimate the cost
instruments at the grant date of granted stock options
On each balance sheet date in the vesting period, the best
estimate is made and the number of equity instruments
Basis for determining the number of equity instruments
expected to be vested is revised based on the latest
expected to be vested
follow-up information such as changes in the number of
vested employees.
The vesting conditions for the second exercise period
Reasons for the significant difference between the estimates of the first batch are not satisfied
in the current period and that in the prior period The vesting conditions for the first exercise period of the
reserved portion are not yet satisfied
Amounts of equity-settled share-based payments
6,451,242.86
accumulated in capital reserve
Total expenses recognized for equity-settled share-based
1,352,847.60
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, ([2019] No. 748, SASAC), and as deliberated and approved by
the 1st Extraordinary General Meeting of the Company in 2020 dated 3 February 2020, the
Company granted 238 incentive recipients 17,198,000 stock options on 3 February 2020 with an
exercise price of RMB 17.80 per share. With a lockup period of 24 months from the grant 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 grant date), 30% for the
second batch (after 36 months but within 48 months subsequent to the grant date); 30% for the third
batch (after 48 months but within 84 months subsequent to the grant date); each share option
represents the right to subscribe a share of ordinary share of the Company.
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 grant 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 grant 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 grant date), and the
remaining 50% for the second batch (after 36 months but within 72 months subsequent to the grant
date); each share option represents the right to subscribe a share of ordinary share of the Company.
- 147 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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, on 29 January 2022, the Company uniformly adjusted the exercise
prices of the first batch and reserved portion of stock option granted under stock option incentive
plan (phase I) from RMB 17.34 per share to RMB 16.96 per share and from RMB 15.09 per share
to RMB 14.71 per share respectively; On 20 January 2023, the Company uniformly adjusted the
exercise prices of the first batch and reserved portion of stock option granted under stock option
incentive plan (phase I) from RMB 16.96 per share to RMB 16.53 per share and from RMB 14.71
per share to RMB 14.28 per share respectively;
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 as 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 satisfied.
As 10 recipients to the incentive plan retired or ceased to be employed by the Company, the
corresponding 1,248,000 stock options were cancelled.
On 7 February 2023, the Company cancelled 3,886,800 stock options corresponding to the second
exercise period of the stock option (initially granted batch) under stock option inventive plan (phase
I) of the Company as the vesting conditions of the second exercise period of the stock option
(initially granted batch) under stock option inventive plan (phase I) of the Company have not been
satisfied; The Company cancelled 265,000 stock options corresponding to the first exercise period
of the stock option (reserved portion) under stock option inventive plan (phase I) of the Company
as the vesting conditions of the first exercise period of the stock option (reserved portion) under
stock option inventive plan (phase I) of the Company have not been satisfied. As 21 recipients to
the incentive plan retired or ceased to be employed by the Company, the corresponding 1,796,400
stock options were cancelled.
(XV) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item 30/6/2023 31/12/2022
Commitments that have been entered into but have not been
recognized in the financial statements
- Commitment to make contributions to the investees 458,281,675.87 38,956,185.01
- Commitment to acquire and construct long-term assets 1,731,571,969.81 1,802,316,899.52
- Commitment to invest port construction 5,741,342.60 5,571,690.76
- Others 383,560.31 383,560.31
Total 2,195,978,548.59 1,847,228,335.60
- 148 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XV) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies
Item 30/6/2023 31/12/2022
Contingent liabilities arising from litigations (Note 1) 943,254,239.79 279,438,527.06
Guarantees for borrowings of associates (Note 2) 310,053,082.02 186,672,528.21
Total 1,253,307,321.81 466,111,055.27
Note 1: This mainly represents the significant contingent liabilities arising from the pending
litigations between TCP and its subsidiaries and the local tax authority, employee or former
employee. According to the latest estimates of the Group's management, the possible
compensation is RMB 943,254,239.79 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.
Zhanjiang Port, a subsidiary of the Company, entered into an EPC contract for the General
Cargo Terminal Project at Donghai Island Port Area of Zhanjiang Port with CCCC Water
Transport Planning and Design Institute Co., Ltd. on 28 June 2016, with the agreed
construction period from 28 June 2016 to 8 June 2018. After the contract was signed, the
overall progress of the project construction was delayed due to the optimization and
adjustment of the layout plan and process design for the terminal. In December 2022,
CCCC Water Transport Planning and Design Institute Co., Ltd. filed a litigation to the
court for losses caused by delay in construction, adjustment to project scale, changes in
design, and other reasons, and require Zhanjiang Port for compensation.
As at 31 December 2022, the claims of CCCC Water Transport Planning and Design
Institute Co., Ltd. were inconsistent with those agreed in the contract, the relevant result of
the litigation could not be reasonably estimated, and the management of the Group believed
that the possibility of loss was quite low, therefore, no provisions were made for the above
pending litigation.
Note 2: As of 30 June 2023, the guarantees provided by the Group to related parties are set out in
Note (XIII) 5 (3).
As of 30 June 2023, 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 2023, in addition to aforesaid contingencies, the Group had no other significant
guarantee or contingencies that need to be explained.
- 149 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVI) EVENTS AFTER THE BALANCE SHEET DATE
1. Disposal of equity interests in Ningbo Daxie
As of 30 June 2023, the Company's subsidiary Cyber Chic Company Limited had not completed
the disposal of 45% equity interests in Ningbo Daxie. On 8 August 2023, the equity transfer was
completed. Therefore, the Group no longer holds equity interests in Ningbo Daxie and no longer
includes it in the scope of consolidated financial statements.
2. Commitment of capital injection into the investee
On 21 April 2023, Fortune Centre Group Limited, a subsidiary of the Company, entered into a
shareholders agreement (the "Shareholders Agreement") with Access Engineering PLC and Sri
Lanka Ports Authority with respect to the establishment and governance of the project company for
the implementation of South Asia Commercial and Logistics Hub Project ("SACLH Project"). The
project company has issued share capital of USD 84,000,000.00. Therein, Fortune Centre Group
Limited, Access Engineering PLC. And Sri Lanka Ports Authority respectively agreed to make cash
contributions of USD 58.8 million, USD 12.6 million and USD 12.6 million, accounting for 70%,
15% and 15% of the total issued share capital, respectively. The Group has the rights to assign the
majority of the members of the Board of Directors of the project company. Therefore, the Group
has control over the project company and includes it in the scope of consolidated financial
statements.
In July 2023, Fortune Centre Group Limited, a subsidiary of the Company, entered into a
supplementary agreement to the Shareholders Agreement with Access Engineering PLC and Sri
Lanka Ports Authority, changing the total share capital of the project company from USD 84 million
to USD 78.9 million. As of the approval date of the financial statements, the Group has injected
capital of USD 12 million and the capital injection has not yet been completed.
(XVII) 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. The CODM considers the Group's operations from the two aspects of business and
geographic segments.
The operating segments for which their individual financial information is available are identified
by the CODM and are operated by their respective management teams. These operating segments
are aggregated and form reporting segments of the Group.
- 150 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(1) Basis for determining reporting segments and accounting policies - continued
The management assesses the performance of the Group's business operations including ports
operation, bonded logistics operation and other operations from the business and geographic
segments perspectives
Ports operation
Ports operation includes container terminal operation, bulk and general cargo terminal operation
operated by the Group's 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 regionsregions 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, logistics operations
operated by the Group's associates, and 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. For the purpose of segment reporting, the operating
segments with similar economic characteristics are aggregated into reporting 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.
- 151 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(1) Basis for determining reporting segments and accounting policies - continued
Other operations - continued
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 the
purpose of segment reporting, these operating segments have been aggregated into reporting
segments according to the natures of their operations to present more meaningful information.
There are no material sales or other transactions between the segments.
The revenue from a major customer of ports operation amounts to RMB 785,642,084.52
representing 10.08 % (For the period from 1 January to 30 June 2022: 9.73%) of the Group's
operating income for the period from 1 January to 30 June 2023.
- 152 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments
Segment information for the period from 1 January to 30 June 2023 is as follows:
Ports operation
Bonded logistics
Item Mainland China, Hong Kong and Taiwan Others Unallocated amount Total
Other regions Sub-total operation
Pearl River Delta Yangtze River Delta Bohai Rim Others
Operating income 3,097,351,341.64 454,417,897.17 34,005,738.63 1,707,565,905.93 2,150,550,737.41 7,443,891,620.78 264,962,592.07 86,407,358.14 - 7,795,261,570.99
Operating cost 1,682,854,605.81 324,518,375.72 27,745,460.78 1,244,020,127.84 991,877,837.27 4,271,016,407.42 137,413,819.19 111,513,527.18 - 4,519,943,753.79
Segment operating profit (loss) 1,414,496,735.83 129,899,521.45 6,260,277.85 463,545,778.09 1,158,672,900.14 3,172,875,213.36 127,548,772.88 -25,106,169.04 - 3,275,317,817.20
Adjustments:
Taxes and levies 19,526,223.00 753,587.52 750,216.83 23,234,524.85 73,010,300.82 117,274,853.02 12,504,446.59 11,998,032.83 - 141,777,332.44
Administrative expense 198,241,152.78 19,077,539.33 4,226,647.69 243,950,580.76 121,326,402.72 586,822,323.28 23,123,474.76 532,016.34 180,438,340.27 790,916,154.65
R&D expenses 94,730,593.45 19,694,430.12 - 6,616,287.15 - 121,041,310.72 - - - 121,041,310.72
Financial expenses 28,664,425.22 24,980,305.30 2,341,420.05 47,653,186.79 48,707,223.33 152,346,560.69 4,025,526.29 15,542,184.34 788,535,470.58 960,449,741.90
Other income 20,795,181.81 8,774,798.69 3,918.26 25,020,275.37 - 54,594,174.13 7,676,617.28 286,151.86 - 62,556,943.27
Investment income 31,088,848.04 2,576,081,993.76 223,213,146.95 20,281,271.27 179,713,787.90 3,030,379,047.92 16,346,214.88 127,311,637.93 13,455,817.67 3,187,492,718.40
Gains (losses) from changes
27,635,522.77 - 171,253,003.44 -4,977,932.24 - 193,910,593.97 -57,875,873.69 5,674,527.84 1,328,055.56 143,037,303.68
in fair value
Impairment gains (losses)
-647,077.22 - - 791,105.35 -7,855,915.77 -7,711,887.64 416,266.34 - - -7,295,621.30
of credit
Impairment gains of assets 65,324.84 - - - - 65,324.84 - - - 65,324.84
Gains (losses) from disposal of
656,081.83 - -7,362.22 -15,292.67 3,645.68 637,072.62 -285,026.87 - - 352,045.75
assets
Operating profit (loss) 1,152,928,223.45 2,650,250,451.63 393,404,699.71 183,190,625.62 1,087,490,491.08 5,467,264,491.49 54,173,523.18 80,093,915.08 -954,189,937.62 4,647,341,992.13
- 153 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment information for the period from 1 January to 30 June 2023 is as follows: - continued
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics
Item Others Unallocated amount Total
Yangtze River Other regions Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 20,290,570.27 202,798.18 50,473.44 2,977,967.67 9,780,181.63 33,301,991.19 99,471.76 120,985.48 3,061,036.03 36,583,484.46
Non-operating 5,761,171.09 213,965.02 - 3,056,124.97 1,047,742.25 10,079,003.33 - - - 10,079,003.33
expenses
Gross profit (loss) 1,167,457,622.63 2,650,239,284.79 393,455,173.15 183,112,468.32 1,096,222,930.46 5,490,487,479.35 54,272,994.94 80,214,900.56 -951,128,901.59 4,673,846,473.26
Income tax expenses 284,023,720.30 98,953,958.65 52,291,098.46 35,294,704.60 109,190,020.21 579,753,502.22 16,942,381.55 16,149,388.08 374,580.71 613,219,852.56
Net profit (loss) 883,433,902.33 2,551,285,326.14 341,164,074.69 147,817,763.72 987,032,910.25 4,910,733,977.13 37,330,613.39 64,065,512.48 -951,503,482.30 4,060,626,620.70
Segment assets 24,077,034,824.03 60,067,762,451.82 9,816,804,596.68 27,625,611,169.76 47,152,109,689.23 168,739,322,731.52 3,971,154,263.99 19,585,631,808.90 12,632,780,604.92 204,928,889,409.33
Total assets in the financial statements 204,928,889,409.33
Segment liabilities 7,030,968,571.00 1,976,037,523.47 142,578,115.06 7,412,483,599.88 7,539,593,421.93 24,101,661,231.34 382,986,037.09 703,952,392.58 48,988,629,180.92 74,177,228,841.93
Total liabilities in the financial statements 74,177,228,841.93
Supplementary
information:
Depreciation and 639,599,877.02 111,508,652.47 441,032.34 429,560,132.83 433,516,442.65 1,614,626,137.31 44,093,152.92 12,278,103.04 13,879,454.86 1,684,876,848.13
amortization
Interest income 24,037,169.58 659,332.12 337,995.32 12,375,739.77 143,657,830.50 181,068,067.29 419,363.09 898,417.50 66,515,506.30 248,901,354.18
Interest expenses 44,714,677.00 6,591,958.47 - 58,488,953.57 195,722,581.32 305,518,170.36 4,367,885.32 9,846,807.92 793,157,746.32 1,112,890,609.92
Investment income
from long-term 29,199,934.90 2,540,328,464.96 182,221,956.36 20,172,521.27 179,713,787.90 2,951,636,665.39 16,346,214.88 127,311,637.93 - 3,095,294,518.20
equity investment
under the equity method
Long-term equity
investment under 1,813,117,599.50 53,312,454,699.90 8,694,304,892.54 1,718,018,313.90 13,417,899,893.72 78,955,795,399.56 1,736,168,937.02 14,284,305,831.54 - 94,976,270,168.12
equity method
Non-current assets
other than long-term 18,097,790,529.49 401,611,000.59 15,379,045.27 20,222,118,801.41 26,461,825,273.66 65,198,724,650.42 2,022,680,892.60 4,922,045,463.32 1,477,890,583.32 73,621,341,589.66
equity investment
- 154 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVII) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
The Group's revenue by geographical areas of operations and information about its non-current
assets other than financial assets and deferred tax assets presented based on the geographical areas
in which the assets are located is follows:
Revenue from external transactions Current period Prior period
Mainland China, Hong Kong and Taiwan 5,624,973,995.70 6,200,189,217.85
Pearl River Delta 3,354,702,296.86 3,622,864,022.12
Yangtze River Delta 454,417,897.17 649,729,096.28
Bohai Rim 108,287,895.74 104,952,044.58
Others 1,707,565,905.93 1,822,644,054.87
Other regions 2,170,287,575.29 1,950,273,149.34
Total 7,795,261,570.99 8,150,462,367.19
Total non-current assets 30/6/2023 31/12/2022
Mainland China, Hong Kong and Taiwan 127,678,176,348.55 130,723,044,577.52
Pearl River Delta 42,501,553,761.46 42,150,053,552.57
Yangtze River Delta 53,714,065,700.49 56,350,210,822.78
Bohai Rim 9,223,994,377.29 9,147,542,234.74
Others 22,238,562,509.31 23,075,237,967.43
Other regions 40,919,435,409.23 38,433,802,661.11
Total 168,597,611,757.78 169,156,847,238.63
(3) Degree of reliance on major customers
The total operating income derived from the top five clients of the Group is RMB 1,840,216,846.81,
accounting for 23.61% of the Group's total operating income.
(XVIII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Other receivables
(1) Summary of other receivables
Item 30/6/2023 31/12/2022
Dividends receivable 165,497,659.95 147,896,763.88
Other receivables 1,253,023,972.63 2,601,740,991.35
Total 1,418,521,632.58 2,749,637,755.23
- 155 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVIII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
1. Other receivables - continued
(2) Dividends receivable
(a) Presentation of dividends receivable
Name of companies 30/6/2023 31/12/2022
Chiwan Wharf (Hong Kong) 147,680,363.88 147,680,363.88
CM Port 8,083,560.00 -
CM International Tech 9,517,336.07 -
China Petroleum Sales Co., Ltd. Guangdong Shenzhen
216,400.00 216,400.00
Petroleum Company
Total 165,497,659.95 147,896,763.88
Less: Provision for credit loss - -
Carrying amount 165,497,659.95 147,896,763.88
(b) Significant dividends receivable aged over 1 year
Impaired
Item 30/6/2023 31/12/2022 Aging Reason for outstanding
or not
Chiwan Wharf Procedures are being handled and it is
147,680,363.88 147,680,363.88 2 - 3 years No
(Hong Kong) expected to be recovered in 2023
(3) Other receivables
(a) Disclosure of other receivables by aging
30/6/2023
Aging Proportion of provision
Other receivables Provision for credit loss
(%)
Within 1 year 1,250,228,057.16 - -
1 to 2 years 2,467,600.00 - -
2 to 3 years - - -
Over 3 years 711,772.07 383,456.60 53.87
Total 1,253,407,429.23 383,456.60 0.03
(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 economic conditions and forecast of future economic conditions.
- 156 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVIII) 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 2023, the credit risk and expected credit loss of other receivables by categories of customers are as follows:
30/6/2023 31/12/2022
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 1,253,023,972.63 - - 1,253,023,972.63 2,601,740,991.35 - - 2,601,740,991.35
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 1,253,023,972.63 - 383,456.60 1,253,407,429.23 2,601,740,991.35 - 383,456.60 2,602,124,447.95
Provision for
- - 383,456.60 383,456.60 - - 383,456.60 383,456.60
credit loss
Book value 1,253,023,972.63 - - 1,253,023,972.63 2,601,740,991.35 - - 2,601,740,991.35
- 157 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVIII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
1. Other receivables - continued
(3) Other receivables - continued
(c) Provision, recovery or reversal of credit loss of other receivables in the current period
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
Balance at 1 January 2023 - - 383,456.60 383,456.60
Carrying amount of other receivables at 1 January 2023
-- 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 2023 - - 383,456.60 383,456.60
(d) The Company has no recovery or reversal of significant credit loss allowance in the current
year.
(e) Presentation of other receivables by nature
Item 30/6/2023 31/12/2022
Loans to related parties 1,235,854,890.39 2,596,356,894.67
Rent receivable 9,417,444.96 -
Advances 4,933,126.00 2,467,600.00
Others 3,201,967.88 3,299,953.28
Total 1,253,407,429.23 2,602,124,447.95
Less: Provision for credit loss 383,456.60 383,456.60
Book value 1,253,023,972.63 2,601,740,991.35
(f) There is no other receivables write-off during this period.
- 158 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVIII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
1. Other receivables - continued
(3) Other receivables - continued
(g) The top five balances of other receivables classified by debtor
Proportion of
Relationship Closing balance
the amount to
Company name with the Nature 30/6/2023 Aging of provision for
the total other
Company credit loss
receivable (% )
Chiwan Wharf Holdings
Subsidiary Related party loans 1,091,029,629.39 Within 1 year 87.05
(Hong Kong) Ltd.
Shunkong Port Subsidiary Related party loans 144,825,261.00 Within 1 year 11.55
Shenzhen Chiwan Port
Subsidiary Rent receivable 7,594,959.30 Within 1 year 0.61
Development Co., Ltd.
CM International Tech Subsidiary Advances 2,467,600.00 1 - 2 years 0.20
Shenzhen Merchants
Qianhaiwan Real Estate Related party Rent receivable 1,822,485.66 Within 1 year 0.15
Co., Ltd.
Total 1,247,739,935.35 99.56
- 159 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVIII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Long-term equity investments
Changes f or the period
Ef f ect of translation
Closing balance
Investment income Adjustment of other Announced of f inancial
Investee 01/01/2023 Additional Reduction in Other equity Impairment 30/6/2023 of impairment
under the equity comprehensive distribution of cash statements
investment investment movements provision provision
method income dividends or prof it denominated in
f oreign currencies
I. Subsidiary
P orts Development (Hong Kong) Limited 29,203,045,326.23 - - - - - - - - 29,203,045,326.23 -
Zhanjiang P ort 3,381,825,528.52 - - - - - - - - 3,381,825,528.52 -
Chiwan Container Terminal Co., Ltd. 421,023,199.85 - - - - - - - - 421,023,199.85 -
Shenzhen Chiwan Harbor Container Co. Ltd. 250,920,000.00 - - - - - - - - 250,920,000.00 -
Shenzhen Chiwan P ort Development Co., Ltd. 206,283,811.09 - - - - - - - - 206,283,811.09 -
Dongguan Shenchiwan P ort Affairs Co., Ltd. 186,525,000.00 - - - - - - - - 186,525,000.00 -
Dongguan Shenchiwan Wharf Co., Ltd. 175,000,000.00 - - - - - - - - 175,000,000.00 -
CM P ort 168,841,768.35 656,564.40 - - - - - - - 169,498,332.75 -
CM P ort (Zhoushan) RoRo Logistics Co., Ltd. 149,709,800.00 - - - - - - - - 149,709,800.00 -
Yide P ort 131,866,700.00 - - - - - - - - 131,866,700.00 -
Shunkong P ort 50,000,000.00 - - - - - - - - 50,000,000.00 -
Shenzhen Chiwan Tugboat Co., Ltd. 24,000,000.00 - - - - - - - - 24,000,000.00 -
CM International Tech 20,561,075.02 - - - - - - - - 20,561,075.02 -
Shenzhen Chiwan International Freight Agency Co., Ltd. 5,500,000.00 - - - - - - - - 5,500,000.00 -
Sanya Merchants P ort Development Co., Ltd. 2,040,000.00 - - - - - - - - 2,040,000.00 -
Chiwan Wharf Holdings (Hong Kong) Ltd. 1,070,000.00 - - - - - - - - 1,070,000.00 -
Chiwan Shipping (Hong Kong) Limited 1,051,789.43 - - - - - - - - 1,051,789.43 -
Sub-total 34,379,263,998.49 656,564.40 - - - - - - - 34,379,920,562.89 -
II. Associate
Ningbo Zhoushan 16,228,879,526.87 - - 450,553,881.92 10,596,817.21 -20,538,794.98 -355,122,265.53 - - 16,314,369,165.49 -
China Merchants Northeast Asia Development &
1,017,010,205.71 - - 3,116,967.23 - - - - - 1,020,127,172.94 -
Investment Co., Ltd.
China Merchants Bonded Logistics Co., Ltd. 412,362,918.79 - - 20,604,000.00 - - - - - 432,966,918.79 -
Antong Holdings (Note ) - 892,445,435.37 - 10,337,508.05 - - - - - 902,782,943.42 -
Sub-total 17,658,252,651.37 892,445,435.37 - 484,612,357.20 10,596,817.21 -20,538,794.98 -355,122,265.53 - - 18,670,246,200.64 -
III. Joint venture
Yantai P ort Group Laizhou Port Co., Ltd. 794,153,389.74 - - 20,672,709.37 - -1,476,439.54 -28,133,178.67 - - 785,216,480.90 -
Fujian Zhaohang Logistics Management P artnership
592,134,266.75 - - 8,836,887.70 - - - - - 600,971,154.45 -
(Limited P artnership)
Shenzhen Gangteng Internet Technology Co., Ltd. 9,809,165.14 3,750,000.00 - -764,032.37 - - - - - 12,795,132.77 -
Sub-total 1,396,096,821.63 3,750,000.00 - 28,745,564.70 - -1,476,439.54 -28,133,178.67 - - 1,398,982,768.12 -
Total 53,433,613,471.49 896,851,999.77 - 513,357,921.90 10,596,817.21 -22,015,234.52 -383,255,444.20 - - 54,449,149,531.65 -
- 160 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(Unless otherwise specified, the monetary unit shall be RMB.)
(XVIII) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS -
continued
2. Long-term equity investments - continued
Note : Details are set out in Note (VIII) 13.
3. Operating income and operating costs
Current period Prior period
Item
Revenue Cost Revenue Cost
Principal operations - - - 1,132,979.70
Other operations 8,968,995.20 1,843,205.76 - -
Total 8,968,995.20 1,843,205.76 - 1,132,979.70
4. Investment income
(1) Details of investment income
Item Current period Prior period
Gains from long-term equity investments under the equity method 513,357,921.90 136,885,266.28
Gains from long-term equity investments under the cost method 405,401,855.31 546,403,227.17
Gains from held-for-trading financial assets 27,032,712.34 79,627,913.70
Gains from other equity instruments investments 8,824,500.00 -
Gains from disposal of long-term equity investments - -43,817.42
Total 954,616,989.55 762,872,589.73
(2) Gains from long-term equity investments under the cost method
Reason for changes comparing with
Investees Current period Prior period
prior period
Chiwan Container Terminal Co., Ltd. 149,527,479.94 166,925,696.05 Changes in profit distribution of investee
Shenzhen Chiwan Harbor Container Co. Ltd. 111,712,423.41 173,751,858.77 Changes in profit distribution of investee
Zhanjiang Port 36,552,790.18 91,862,080.91 Changes in profit distribution of investee
Dongguan Chiwan Terminal Co., Ltd. 33,386,741.74 37,543,998.58 Changes in profit distribution of investee
Dongguan Chiwan Warf Co., Ltd. 26,519,896.50 18,111,237.23 Changes in profit distribution of investee
Shenzhen Chiwan Tugboat Co., Ltd. 20,137,075.44 29,238,925.84 Changes in profit distribution of investee
Shenzhen Chiwan Port Development Co., Ltd. 9,751,697.73 20,415,654.72 Changes in profit distribution of investee
CM International Tech 9,517,336.07 - Changes in profit distribution of investee
CM Port 8,083,560.00 8,322,676.13 Changes in profit distribution of investee
Shenzhen Chiwan International Freight Agency Co., Ltd. 212,854.30 231,098.94 Changes in profit distribution of investee
Total 405,401,855.31 546,403,227.17
- 161 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 -6,698,657.83
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 46,639,497.49
accordance with the national standard)
Money lending income earned from non-financial institutions in profit or loss 113,972,342.76
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., staffing expenditure, 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
involving 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
143,037,303.68
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
2,371,890.55
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 of one-off adjustment to profit or loss for the period according to the
-
requirements of tax laws and accounting laws and regulations on profit or loss
Custodian fees earned from entrusted operation -
Other non-operating income or expenses other than above 33,504,023.58
Other profit or loss that meets the definition of non-recurring profit or loss -
Tax effects -65,076,056.83
Effects of minority interest (after tax) -166,808,957.12
Total 100,941,386.28
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2023
(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 the Company 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
Profit for the reporting period average return
Basic EPS Diluted EPS
on net assets (%)
Net profit attributable to ordinary shareholders 3.4343 0.7612 0.7612
Net profit attributable to ordinary shareholders after
3.2520 0.7208 0.7208
deducting non-recurring profit or loss
