CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
CONTENTS PAGE(S)
CONSOLIDATED BALANCE SHEET 1-2
BALANCE SHEET OF THE COMPANY 3-4
CONSOLIDATED INCOME STATEMENT 5
INCOME STATEMENT OF THE COMPANY 6
CONSOLIDATED CASH FLOW STATEMENT 7
CASH FLOW STATEMENT OF THE COMPANY 8
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 9 - 10
THE COMPANY'S STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 11 - 12
NOTES TO THE FINANCIAL STATEMENTS 13 - 188
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2024
Consolidated Balance Sheet
RMB
Item Notes 30/06/2024 31/12/2023
Current Assets:
Cash and bank balances (VIII)1 17,378,542,552.70 16,079,646,178.24
Held-for-trading financial assets (VIII)2 3,180,085,926.18 4,568,806,108.84
Notes receivable (VIII)3 206,216,580.72 325,150,195.09
Accounts receivable (VIII)4 2,069,333,396.20 1,103,901,466.25
Receivables financing (VIII)5 - 2,001,669.46
Prepayments (VIII)6 68,587,293.06 37,664,552.30
Other receivables (VIII)7 1,059,570,728.10 940,014,994.01
Including: Interest receivable - -
Dividends receivable (VIII)7 493,079,578.90 343,386,866.06
Inventories (VIII)8 297,849,790.11 218,898,192.87
Non-current assets due within one year (VIII)9 14,189,207.65 17,451,380.98
Other current assets (VIII)10 182,809,878.79 189,673,500.87
Total current assets 24,457,185,353.51 23,483,208,238.91
Non-current Assets:
Long-term receivables (VIII)11 3,862,480,589.73 3,856,466,116.99
Long-term equity investments (VIII)12 97,978,665,265.16 96,666,117,776.27
Investments in other equity instruments (VIII)13 157,461,648.16 157,461,648.16
Other non-current financial assets (VIII)14 1,322,285,501.80 877,576,442.83
Investment properties (VIII)15 4,865,142,527.67 4,958,374,968.79
Fixed assets (VIII)16 29,565,382,474.26 28,986,538,326.35
Including: Fixed assets - cost 53,563,199,590.12 51,987,700,820.76
Accumulated depreciation 23,784,517,134.31 22,787,694,400.09
Provision for impairment of fixed assets 213,422,103.17 213,504,483.08
Construction in progress (VIII)17 2,546,977,089.31 2,909,817,281.46
Right-of-use assets (VIII)18 9,378,784,554.58 9,441,668,311.22
Intangible assets (VIII)19 17,642,433,336.45 18,073,062,184.72
Development expenditure (IX)2 48,966,825.42 50,990,153.18
Goodwill (VIII)20 6,425,370,717.88 6,493,002,246.44
Long-term prepaid expenses (VIII)21 947,649,101.31 993,793,505.29
Deferred tax assets (VIII)22 405,103,110.35 415,063,477.03
Other non-current assets (VIII)23 1,141,243,519.72 1,194,155,989.62
Total non-current assets 176,287,946,261.80 175,074,088,428.35
TOTAL ASSETS 200,745,131,615.31 198,557,296,667.26
-1-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2024
Consolidated Balance Sheet - continued
RMB
Item Notes 30/06/2024 31/12/2023
Current liabilities:
Short-term borrowings (VIII)24 11,914,293,884.20 15,714,045,288.97
Notes payable (VIII)25 33,648,733.23 73,461,165.82
Accounts payable (VIII)26 595,136,679.08 691,765,137.25
Receipts in advance (VIII)27 26,254,832.70 17,387,537.36
Contract liabilities (VIII)28 136,314,445.28 142,080,101.00
Employee benefits payable (VIII)29 831,400,024.70 917,964,606.65
Including: Payroll payable 790,851,685.41 883,913,277.13
Welfare payable 3,756,362.39 -
Taxes payable (VIII)30 685,146,685.84 923,053,572.50
Other payables (VIII)31 4,637,311,020.75 1,654,622,170.02
Including: Interest payable - -
Dividends payable (VIII)31 3,049,267,902.67 111,897,214.27
Non-current liabilities due within one year (VIII)32 5,672,954,810.61 6,817,404,289.25
Other current liabilities (VIII)33 2,132,961,799.00 2,143,842,534.53
Total current liabilities 26,665,422,915.39 29,095,626,403.35
Non-current Liabilities:
Long-term borrowings (VIII)34 18,985,278,952.69 18,227,543,954.71
Bonds payable (VIII)35 16,356,687,170.33 14,287,508,564.15
Including: Preferred shares - -
Perpetual bonds - -
Lease liabilities (VIII)36 1,543,989,619.78 1,001,172,206.92
Long-term payables (VIII)37 3,549,972,175.88 3,822,862,202.17
Long-term employee benefits payable (VIII)38 600,365,732.58 603,009,921.91
Provisions (VIII)39 75,889,086.50 85,590,059.41
Deferred income (VIII)40 999,803,782.05 1,024,776,557.73
Deferred tax liabilities (VIII)22 4,824,097,022.05 4,659,638,104.37
Other non-current liabilities (VIII)41 169,867,058.85 179,634,263.73
Total non-current liabilities 47,105,950,600.71 43,891,735,835.10
TOTAL LIABILITIES 73,771,373,516.10 72,987,362,238.45
Shareholders' equity:
Share capital (VIII)42 2,500,282,481.00 2,499,074,661.00
Including: State capital - -
State-owned corporate capital 2,238,593,409.00 2,264,090,797.00
Collective capital - -
Private capital 241,536,826.00 218,857,094.00
Foreign capital 20,152,246.00 16,126,770.00
Capital reserve (VIII)43 37,328,977,703.38 37,076,846,803.06
Other comprehensive income (VIII)44 -1,203,256,302.91 -903,626,594.35
Special reserve (VIII)45 49,651,276.14 34,003,994.41
Surplus reserve (VIII)46 1,095,980,563.68 1,095,980,563.68
Unappropriated profit (VIII)47 20,141,978,136.85 19,045,313,519.75
Total equity attributable to shareholders of the Company 59,913,613,858.14 58,847,592,947.55
Minority interests 67,060,144,241.07 66,722,341,481.26
TOTAL SHAREHOLDERS' EQUITY 126,973,758,099.21 125,569,934,428.81
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 200,745,131,615.31 198,557,296,667.26
The accompanying notes form part of the financial statements.
The financial statements were signed by the following:
Xu Song
_______________________ Tu Xiaoping
_______________________ Liu Shixia
___________________________
Legal Representative Chief Financial Officer Head of Accounting Department
-2-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2024
Balance Sheet of the Company
RMB
Item Notes 30/06/2024 31/12/2023
Current Assets:
Cash and bank balances 5,456,403,369.58 3,281,038,218.84
Held-for-trading financial assets 1,002,597,260.27 1,500,517,808.22
Prepayments 9,569,345.46 10,075,055.61
Other receivables (XX)1 2,692,062,826.08 1,742,461,670.32
Including: Interest receivable - -
Dividends receivable (XX)1 210,443,391.92 167,092,526.14
Other current assets 6,600,844.96 10,882,675.96
Total current assets 9,167,233,646.35 6,544,975,428.95
Non-current Assets:
Long-term receivables 9,446,822.18 9,391,615.50
Long-term equity investments (XX)2 55,283,853,923.28 55,168,618,338.79
Investments in other equity instruments 148,088,364.25 148,088,364.25
Other non-current financial assets - -
Fixed assets 26,438,147.37 27,343,639.28
Including: Fixed assets - cost 32,572,411.94 32,478,382.04
Accumulated depreciation 6,134,264.57 5,134,742.76
Provision for impairment of fixed assets - -
Construction in progress 607,774.34 607,774.34
Intangible assets 57,343,584.87 54,876,218.77
Development expenditure 47,981,978.33 38,923,289.23
Long-term prepaid expenses 476,230.26 665,319.42
Deferred tax assets 928,465.21 928,465.21
Total non-current assets 55,575,165,290.09 55,449,443,024.79
TOTAL ASSETS 64,742,398,936.44 61,994,418,453.74
-3-
CHINA MERCHANTS PORT GROUP CO., LTD.
AT 30 JUNE 2024
Balance Sheet of the Company - continued
RMB
Item Notes 30/06/2024 31/12/2023
Current Liabilities:
Receipts in advance 9,569,345.44 5,358,074.44
Employee benefits payable 41,596,801.95 45,188,572.96
Including: Payroll payable 41,581,638.24 45,032,983.18
Welfare payable - -
Taxes payable 353,067.43 1,046,270.66
Other payables 1,799,964,025.96 376,323,201.93
Including: Interest payable - -
Dividends payable 1,484,741,417.10 34,577,578.12
Non-current liabilities due within one year 4,161,288,010.74 5,119,243,623.45
Other current liabilities 2,005,876,712.33 2,007,190,136.98
Total current liabilities 8,018,647,963.85 7,554,349,880.42
Non-current Liabilities:
Long-term borrowings 8,968,000,000.00 7,979,000,000.00
Bonds payable 5,000,000,000.00 3,000,000,000.00
Deferred tax liabilities 42,468,225.14 41,948,362.13
Total non-current liabilities 14,010,468,225.14 11,020,948,362.13
TOTAL LIABILITIES 22,029,116,188.99 18,575,298,242.55
SHAREHOLDERS' EQUITY
Share capital 2,500,282,481.00 2,499,074,661.00
Including: State capital - -
State-owned corporate capital 2,238,593,409.00 2,264,090,797.00
Collective capital - -
Private capital 241,536,826.00 218,857,094.00
Foreign capital 20,152,246.00 16,126,770.00
Capital reserve 37,724,977,402.42 37,704,543,586.11
Other comprehensive income 132,241,011.29 120,520,832.83
Surplus reserve 1,095,980,563.68 1,095,980,563.68
Unappropriated profit 1,259,801,289.06 1,999,000,567.57
TOTAL SHAREHOLDERS' EQUITY 42,713,282,747.45 43,419,120,211.19
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 64,742,398,936.44 61,994,418,453.74
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 2024
Consolidated Income Statement
RMB
Item Notes Current period Prior period
I. Total operating income (VIII)48 7,975,193,083.64 7,795,261,570.99
Less: Operating costs (VIII)48 4,390,869,294.96 4,519,943,753.79
Taxes and surcharges (VIII)49 163,583,488.76 141,777,332.44
Administrative expenses (VIII)50 808,178,756.18 790,916,154.65
Research and development expenses (VIII)51 84,732,961.30 121,041,310.72
Financial expenses (VIII)52 996,212,773.81 960,449,741.90
Including: Interest expenses 1,148,465,132.44 1,112,890,609.92
Interest income 240,157,542.78 248,901,354.18
Net exchange loss 84,715,364.32 93,018,282.35
Add: Other income (VIII)53 108,396,207.87 62,556,943.27
Investment income (VIII)54 3,437,849,898.46 3,187,492,718.40
Including: Income from investments in associates
(VIII)54 3,357,745,272.28 3,095,294,518.20
and joint ventures
Gains from changes in fair value (VIII)55 465,852,896.11 143,037,303.68
Gains (Losses) from impairment of credit (Losses are marked
(VIII)56 315,726,501.93 -7,295,621.30
with "-")
Gains on impairment of assets (VIII)57 - 65,324.84
Gains from disposal of assets (VIII)58 884,468.18 352,045.75
II. Operating profit 5,860,325,781.18 4,647,341,992.13
Add: Non-operating income (VIII)59 17,538,434.73 36,583,484.46
Including: Government grants - 51,161.13
Less: Non-operating expenses (VIII)60 33,699,628.09 10,079,003.33
III. Gross profit 5,844,164,587.82 4,673,846,473.26
Less: Income tax expenses (VIII)63 804,518,878.51 613,219,852.56
IV. Net profit 5,039,645,709.31 4,060,626,620.70
(I) Categorized by continuity of operation
1. Net profit from continuing operation 5,039,645,709.31 4,060,626,620.70
2. Net profit from discontinued operation - -
(II) Categorized by attribution of ownership
1. Net profit attributable to shareholders of the Company 2,546,828,456.08 1,902,334,759.43
2. Profit or loss attributable to minority shareholders 2,492,817,253.23 2,158,291,861.27
V. Other comprehensive income, net of tax (VIII)66 -738,931,293.40 1,427,173,705.07
(I) Other comprehensive income attributable to shareholders of
-299,629,708.56 338,817,383.79
the Company, net of tax
1. Other comprehensive income that will not be reclassified to
2,419,297.96 29,979,361.65
profit or loss
(1) Changes from remeasurement of the defined benefit plan - -
(2) Other comprehensive income that cannot be reclassified to
2,419,297.96 29,979,361.65
profit or loss under the equity method
(3) Changes in fair value of investments in other equity
- -
instruments
2. Other comprehensive income that will be reclassified
-302,049,006.52 308,838,022.14
subsequently to profit or loss
(1) Other comprehensive income that can be reclassified to profit
-42,117,286.47 18,341,346.24
or loss under the equity method
(2) Translation differences of financial statements denominated
-259,931,720.05 290,496,675.90
in foreign currencies
(II) Other comprehensive income attributable to minority interests,
-439,301,584.84 1,088,356,321.28
net of tax
VI. Total comprehensive income attributable to: 4,300,714,415.91 5,487,800,325.77
(I) Shareholders of the Company 2,247,198,747.52 2,241,152,143.22
(II) Minority shareholders 2,053,515,668.39 3,246,648,182.55
VII. Earnings per share
(I) Basic earnings per share (Yuan/share) 1.02 0.76
(II) Diluted earnings per share (Yuan/share) 1.02 0.76
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 2024
Income Statement of the Company
RMB
Item Notes Current period Prior period
I. Operating income (XX)3 8,997,504.49 8,968,995.20
Less: Operating costs (XX)3 1,869,721.92 1,843,205.76
Taxes and surcharges 121,516.02 103,691.21
Administrative expenses 63,984,932.28 66,853,404.89
Research and development expenses 5,232,425.72 7,589,098.79
Financial expenses 205,245,017.72 206,197,148.38
Including: Interest expenses 242,938,818.40 251,482,309.35
Interest income 37,911,483.72 48,604,367.40
Net exchange loss (Gains are marked with "-") -12,932.54 2,346,071.39
Add: Other income 214,855.53 206,131.06
Investment income (XX)4 976,137,968.37 954,616,989.55
Including: Income from investments in associates
and joint ventures
(XX)4 509,529,672.39 513,357,921.90
Gains (losses) from changes in fair value (Losses are
marked with "-")
2,597,260.27 -48,735,325.75
Losses from impairment of assets - -
Gains from disposal of assets (Losses are marked with "-") -9,551.52 -
II. Operating profit 711,484,423.48 632,470,241.03
Add: Non-operating income - -
Less: Non-operating expenses - -
III. Gross profit 711,484,423.48 632,470,241.03
Less: Income tax expenses 519,863.01 276,303.95
IV. Net profit 710,964,560.47 632,193,937.08
V. Other comprehensive income, net of tax 11,720,178.46 10,596,817.21
(I) Other comprehensive income that cannot be reclassified
to profit or loss
- -
1. Changes from remeasurement of the defined benefit plan - -
2. Other comprehensive income that cannot be reclassified to
profit or loss under the equity method
- -
3. Changes in fair value of investments in other equity
instruments
- -
(II) Other comprehensive income that will be reclassified to
profit or loss
11,720,178.46 10,596,817.21
1. Other comprehensive income that can be reclassified
to profit or loss under the equity method
11,720,178.46 10,596,817.21
2. Translation differences of financial statements denominated
in foreign currencies
- -
VI. Total comprehensive income 722,684,738.93 642,790,754.29
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 2024
Consolidated Cash Flow Statement
RMB
Item Notes Current period Prior period
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 7,311,373,521.74 7,087,683,808.17
Receipts of tax refunds 41,020,468.74 8,515,483.02
Other cash receipts relating to operating activities (VIII) 67(1) 758,800,617.46 373,799,421.93
Sub-total of cash inflows 8,111,194,607.94 7,469,998,713.12
Cash payments for goods purchased and services received 1,997,624,016.80 2,200,251,570.38
Cash payments to and on behalf of employees 1,827,233,164.62 1,955,256,571.31
Payments of various types of taxes 779,954,861.85 615,016,288.84
Other cash payments relating to operating activities (VIII) 67(1) 383,998,859.64 388,628,976.63
Sub-total of cash outflows 4,988,810,902.91 5,159,153,407.16
Net Cash Flows from Operating Activities (VIII) 68(1) 3,122,383,705.03 2,310,845,305.96
II. Cash Flows from Investing Activities:
Cash receipts from disposal and recovery of investments 11,200,000,000.00 13,267,000,000.00
Cash receipts from investments income 2,049,095,054.18 849,743,795.10
Net cash receipts from disposal of fixed assets, intangible assets
4,259,742.53 29,004,019.28
and other long-term assets
Other cash receipts relating to investing activities (VIII) 67(2) - 103,159,042.89
Sub-total of cash inflows 13,253,354,796.71 14,248,906,857.27
Cash payments to acquire or construct fixed assets, intangible
915,709,052.44 554,196,022.65
assets and other long-term assets
Cash payments to acquire investments 9,970,468,537.76 14,912,654,969.50
Net cash paid for acquisition of a subsidiary and other operating
293,538,608.94 -
units
Other cash payments relating to investing activities (VIII) 67(2) 260,079,588.44 7,346,305.63
Sub-total of cash outflows 11,439,795,787.58 15,474,197,297.78
Net Cash Flows from Investing Activities 1,813,559,009.13 -1,225,290,440.51
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 25,266,119.97 107,188,200.00
Including: Cash receipts from capital contributions from
10,000,000.00 107,188,200.00
minority shareholders of subsidiaries
Cash receipts from borrowings 8,027,711,156.20 8,326,794,657.48
Cash receipts from issue of bonds 4,000,000,000.00 4,000,000,000.00
Other cash receipts relating to financing activities (VIII) 67(3) 40,308,276.99 322,361,300.44
Sub-total of cash inflows 12,093,285,553.16 12,756,344,157.92
Cash repayments of borrowings 14,254,925,680.86 10,190,021,538.82
Cash payments for distribution of dividends or profits or
1,110,413,413.55 2,301,689,391.64
settlement of interest expenses
Including: Payments for distribution of dividends or profits to
132,165,604.67 284,157,004.21
minority shareholders of subsidiaries
Other cash payments relating to financing activities (VIII) 67(3) 291,254,795.48 474,856,036.85
Sub-total of cash outflows 15,656,593,889.89 12,966,566,967.31
Net Cash Flows from Financing Activities -3,563,308,336.73 -210,222,809.39
IV. Effect of Foreign Exchange Rate Changes on Cash
-85,035,447.73 113,688,926.60
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 1,287,598,929.70 989,020,982.66
Add: Opening balance of cash and cash equivalents (VIII) 68(2) 16,018,613,631.10 13,567,309,471.62
VI. Closing Balance of Cash and Cash Equivalents (VIII) 68(2) 17,306,212,560.80 14,556,330,454.28
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 2024
Cash Flow Statement of the Company
RMB
Item Notes Current period Prior period
I. Cash Flows from Operating Activities:
Receipts of tax refunds 4,719,888.38 1,576,989.49
Other cash receipts relating to operating activities 111,793,289.71 43,868,259.92
Sub-total of cash inflows 116,513,178.09 45,445,249.41
Cash payments for goods purchased and services received - 40,000.00
Cash payments to and on behalf of employees 54,465,051.41 63,518,456.65
Payments of various types of taxes 135,871.68 257,952.03
Other cash payments relating to operating activities 31,628,988.51 30,081,745.57
Sub-total of cash outflows 86,229,911.60 93,898,154.25
Net Cash Flows from Operating Activities 30,283,266.49 -48,452,904.84
II. Cash Flows from Investing Activities:
Cash receipts from disposal and recovery of investments 3,400,000,000.00 5,500,000,000.00
Cash receipts from investment income 842,543,860.33 809,514,985.64
Net cash receipts from disposal of fixed assets, intangible assets
4,620.00 -
and other long-term assets
Other cash receipts relating to investing activities 1,097,124,093.96 1,814,592,762.53
Sub-total of cash inflows 5,339,672,574.29 8,124,107,748.17
Cash payments to acquire or construct fixed assets, intangible
13,173,117.25 14,018,573.00
assets and other long-term assets
Cash payments to acquire investments 2,910,408,200.00 6,503,750,000.00
Other cash payments relating to investing activities 1,990,006,067.51 440,005,946.71
Sub-total of cash outflows 4,913,587,384.76 6,957,774,519.71
Net Cash Flows from Investing Activities 426,085,189.53 1,166,333,228.46
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 15,266,119.97 -
Cash receipts from borrowings 2,081,483,943.48 1,120,000,000.00
Cash receipts from issue of bonds 4,000,000,000.00 4,000,000,000.00
Other cash receipts relating to financing activities 308,276.99 160,820.44
Sub-total of cash inflows 6,097,058,340.44 5,120,160,820.44
Cash repayments of borrowings 4,178,000,000.00 3,104,000,000.00
Cash payments for distribution of dividends or profits or
203,207,855.76 1,304,284,778.80
settlement of interest expenses
Other cash payments relating to financing activities 1,383,669.41 2,061,702.22
Sub-total of cash outflows 4,382,591,525.17 4,410,346,481.02
Net Cash Flows from Financing Activities 1,714,466,815.27 709,814,339.42
IV. Effect of Foreign Exchange Rate Changes on Cash
96,546.12 372,588.93
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 2,170,931,817.41 1,828,067,251.97
Add: Opening balance of cash and cash equivalents 3,280,985,718.84 3,333,936,587.44
VI. Closing Balance of Cash and Cash Equivalents 5,451,917,536.25 5,162,003,839.41
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 2024
Consolidated Statement of Changes in Shareholders' Equity
RMB
Current period
Equity attributable to shareholders of the Company
Item
Including:
Other Minority interests Total shareholders'
Foreign currency Unappropriated
Share capital Capital reserve comprehensive Special reserve Surplus reserve equity
conversion profit
income
difference
I. Closing balance of the preceding year 2,499,074,661.00 37,076,846,803.06 -903,626,594.35 -453,976,318.25 34,003,994.41 1,095,980,563.68 19,045,313,519.75 66,722,341,481.26 125,569,934,428.81
Add: Changes in accounting policies - - - - - - - - -
Corrections of prior period errors - - - - - - - - -
Business combination involving
- - - - - - - - -
enterprises under common control
Others - - - - - - - - -
II. Opening balance of the period 2,499,074,661.00 37,076,846,803.06 -903,626,594.35 -453,976,318.25 34,003,994.41 1,095,980,563.68 19,045,313,519.75 66,722,341,481.26 125,569,934,428.81
III. Changes for the period 1,207,820.00 252,130,900.32 -299,629,708.56 -259,931,720.05 15,647,281.73 - 1,096,664,617.10 337,802,759.81 1,403,823,670.40
(I) Total comprehensive income - - -299,629,708.56 -259,931,720.05 - - 2,546,828,456.08 2,053,515,668.39 4,300,714,415.91
(II) Owners' contributions and reduction in
1,207,820.00 252,130,900.32 - - - - - -121,000,479.19 132,338,241.13
capital
1. Ordinary shares contributed by owners 1,207,820.00 21,539,187.16 - - - - - 10,000,000.00 32,747,007.16
2. Capital contribution from holders of
- - - - - - - - -
other equity instruments
3. Share-based payment recognized in
- -3,219,134.56 - - - - - -1,037,221.12 -4,256,355.68
shareholders' equity
4. Others - 233,810,847.72 - - - - - -129,963,258.07 103,847,589.65
(III) Profit distribution - - - - - - -1,450,163,838.98 -1,608,593,994.12 -3,058,757,833.10
1. Transfer to surplus reserve - - - - - - - - -
2. Distribution to shareholders - - - - - - -1,450,163,838.98 -1,581,056,078.83 -3,031,219,917.81
3. Others - - - - - - - -27,537,915.29 -27,537,915.29
(IV) Transfers within shareholders' equity - - - - - - - - -
1. Capitalization of capital reserve - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - -
4. Retained earnings carried forward from
- - - - - - - - -
other comprehensive income
5. Others - - - - - - - - -
(V) Special reserve - - - - 15,647,281.73 - - 13,881,564.73 29,528,846.46
1. Transfer to special reserve in the period - - - - 26,486,147.83 - - 27,203,210.18 53,689,358.01
2. Amount utilized in the period - - - - -10,838,866.10 - - -13,321,645.45 -24,160,511.55
(VI) Others - - - - - - - - -
IV. Closing balance of the period 2,500,282,481.00 37,328,977,703.38 -1,203,256,302.91 -713,908,038.30 49,651,276.14 1,095,980,563.68 20,141,978,136.85 67,060,144,241.07 126,973,758,099.21
-9-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
Prior Period
Equity attributable to shareholders of the Company
Including: Foreign
Item Other Total shareholders'
currency Special Unappropriated Minority interests
Share capital Capital reserve comprehensive Surplus reserve equity
conversion reserve profit
income
difference
I. Closing balance of the preceding year 2,499,074,661.00 34,751,640,835.25 -691,536,248.44 -681,788,363.07 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 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 -679,805,734.49 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 - 318,734,698.03 338,817,383.79 290,496,675.90 17,526,089.68 - 777,751,161.98 977,223,004.61 2,430,052,338.09
(I) Total comprehensive income - - 338,817,383.79 290,496,675.90 - - 1,902,334,759.43 3,246,648,182.55 5,487,800,325.77
(II) Owners' contributions and reduction in capital - 318,734,698.03 - - - - - -698,157,619.42 -379,422,921.39
1. Ordinary shares contributed by owners - - - - - - - - -
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 combinations 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. Distribution 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 offset by surplus reserve - - - - - - - - -
4. Others - - - - - - - - -
(V) Special reserve - - - - 17,526,089.68 - - 22,150,426.83 39,676,516.51
1. Transfer to special reserve in the period - - - - 31,106,449.65 - - 36,567,997.25 67,674,446.90
2. Amount utilized 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 -389,309,058.59 43,884,349.65 1,001,917,449.15 17,479,739,463.12 75,007,405,347.27 130,751,660,567.40
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 2024
The Company's Statement of Changes in Shareholders' Equity
RMB
Current period
Other
Item Unappropriated Total shareholders'
Share capital Capital reserve comprehensive Special reserve Surplus reserve
profit equity
income
I. Closing balance of the preceding year 2,499,074,661.00 37,704,543,586.11 120,520,832.83 - 1,095,980,563.68 1,999,000,567.57 43,419,120,211.19
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the period 2,499,074,661.00 37,704,543,586.11 120,520,832.83 - 1,095,980,563.68 1,999,000,567.57 43,419,120,211.19
III. Changes for the period 1,207,820.00 20,433,816.31 11,720,178.46 - - -739,199,278.51 -705,837,463.74
(I) Total comprehensive income - - 11,720,178.46 - - 710,964,560.47 722,684,738.93
(II) Owners' contributions and reduction in capital 1,207,820.00 20,433,816.31 - - - - 21,641,636.31
1. Ordinary shares contributed by owners 1,207,820.00 21,539,187.16 - - - - 22,747,007.16
2. Share-based payment recognized in shareholders' equity - - - - - - -
3. Share-based payment recognized in owners' equity - -3,253,422.05 - - - - -3,253,422.05
4. Others - 2,148,051.20 - - - - 2,148,051.20
(III) Profit distribution - - - - - -1,450,163,838.98 -1,450,163,838.98
1. Transfer to surplus reserve - - - - - - -
2 Distribution to shareholders - - - - - -1,450,163,838.98 -1,450,163,838.98
3. Others - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss offset by surplus reserve - - - - - - -
4. Retained earnings carried forward from other
- - - - - - -
comprehensive income
5. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Transfer to special reserve in the period - - - - - - -
2. Amount utilized in the period - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the period 2,500,282,481.00 37,724,977,402.42 132,241,011.29 - 1,095,980,563.68 1,259,801,289.06 42,713,282,747.45
- 11 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
Prior Period
Other
Item Unappropriated Total shareholders'
Share capital Capital reserve comprehensive Special reserve Surplus reserve
profit equity
income
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 in capital - -20,918,864.84 - - - - -20,918,864.84
1. Ordinary shares contributed by owners - - - - - - -
2. Share-based payment recognized in shareholders' equity - 1,096,369.68 - - - - 1,096,369.68
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. Distribution 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 offset by surplus reserve - - - - - - -
4. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Transfer to special reserve in the period - - - - - - -
2. Amount utilized 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
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 2024
(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 headquarters of the Company is located in Shenzhen, Guangdong Province. The Company and
its subsidiaries (collectively the "Group") are actually engaged in the principal operating activities
of port service, bonded logistics service and other businesses such as property development and
investment.
The Company's and consolidated financial statements were approved by the Board of Directors on
29 August 2024.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") issued by the
Ministry of Finance ("MoF"). In addition, the Group has disclosed relevant financial information
in accordance with Information Disclosure and Presentation Rules for Companies Offering
Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2023).
Going concern
As at 30 June 2024, the Group had total current liabilities in excess of total current assets by RMB
2,208,237,561.88. As at 30 June 2024, the Group had available and unused line of credit and bonds
amounting to RMB 68,897,329,600.71, which is greater than the balance of the net current liabilities.
The Group can obtain financial support from the available line 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 Company's and consolidated financial position as at 30 June 2024, and
the Company's and consolidated results of operations and shareholders’ equity and cash flows for
the period from 1 January to 30 June 2024.
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting year
The Group has adopted the calendar year as its accounting year, e.g., from 1 January to 31 December.
- 13 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
2. Operating cycle
An operating cycle refers to the period since when an enterprise purchases assets for processing
purpose till the realization of those assets in cash or cash equivalents. The Group is principally
engaged in the rendering of port service, bonded logistics service and other businesses such as
property development and investment with one year being an operating cycle.
3. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its domestic subsidiaries operate. Therefore, the Company and its domestic subsidiaries choose
RMB as their functional currency. The Company's overseas subsidiaries choose their functional
currencies on the basis of the primary economic environment in which they operate. The Company
adopts RMB to prepare its financial statements.
4. Method for determination of materiality criteria and basis for selection
Item Materiality criteria
Significant prepayments aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends receivable aged more than 1 year The amount exceeds RMB 50 million individually
Significant other receivables for which bad debt
The amount exceeds RMB 10 million individually
provision is assessed on an individual basis
Reversal or recovery of significant bad debt provision The amount exceeds RMB 10 million individually
Impairment testing of significant long-term equity The carrying amount of an individual long-term equity investment≥
investments 2% of the amount of total assets
The year-end carrying amount of an individual construction in
Significant construction in progress
progress ranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress ≥
in progress 20% of the amount of total assets
Significant accounts payable aged more than 1 year The amount exceeds RMB 10 million individually
Significant receipts in advance aged more than 1 year The amount exceeds RMB 10 million individually
Significant contract liabilities aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends payable aged more than 1 year The amount exceeds RMB 50 million individually
Significant other payables aged more than 1 year The amount exceeds RMB 10 million individually
Cash flows from significant investing activities The amount exceeds 0.5% of the amount of total assets individually
The amount of total revenue or total assets of subsidiaries exceeds
Significant non-wholly owned subsidiaries 15% of the amount of total consolidated revenue or total
consolidated assets
Joint ventures or associates in which the carrying amount of a long-
term equity investment accounts for ≥10% of the amount of total
Significant joint ventures or associates consolidated assets or in which the investment income recognized
under the equity method accounts for ≥10% of the amount of total
consolidated profit
The amount exceeds 0.3% of the amount of total assets individually,
Significant commitments including reorganization, mergers and acquisitions, and building of
construction in progress, etc.
- 14 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for financial instruments which are
measured at fair value, the Group adopts the historical cost as the principle of measurement of the
financial statements. Upon being restructured into a stock company, the fixed assets and intangible
assets initially contributed by the state-owned shareholders are recognized based on the valuation
amounts confirmed by the state-owned assets administration department. Where assets are impaired,
provisions for asset impairment are made in accordance with the relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount of
cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time
of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the
contractual amounts for assuming the present obligation, or, at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether that
price is directly observable or estimated using valuation technique. Fair value measurement and/or
disclosure in the financial statements are determined according to the above basis.
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.
For financial assets of which transaction prices are the fair value on initial recognition, and of which
valuation technique involving unobservable input is used in subsequent measurement, the valuation
technique in the course of valuation is adjusted to enable the result of initial recognition based on
the valuation technique equal to the transaction price.
Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable
for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
- 15 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Business combinations
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
6.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
6.2 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.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets
given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree. Where a business combination not involving enterprises under common
control is achieved in stages that involve multiple transactions, the cost of combination is the sum
of the consideration paid at the acquisition date and the fair value at the acquisition date of the
acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of
auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses
attributable to the business combination are recognized in profit or loss in the periods when they
are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.
- 16 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Business combinations - continued
6.2 Business combinations not involving enterprises under common control and goodwill
- continued
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
and Accounting Standards for Business Enterprises No. 13 - Contingencies. Any change or
adjustment is 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.
If either the fair values of identifiable assets, liabilities and contingent liabilities acquired in a
combination or the cost of business combination can be determined only provisionally by the end
of the period in which the business combination was affected, the acquirer recognizes and measures
the combination using those provisional values. Any adjustments to those provisional values within
twelve months after the acquisition date are treated as if they had been recognized and measured on
the acquisition date.
Goodwill arising from a business combination is measured at cost less accumulated impairment
losses, and is presented separately in the consolidated financial statements.
- 17 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Consolidated financial statements
7.1 Determination criteria 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.
7.2 Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis 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.
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 party being
absorbed under merger by absorption are included in the Group's scope of consolidation as if they
had been included in the scope of consolidation from the date when they first came under the
common control of the ultimate controlling party. Their operating results and cash flows from the
date when they first came under the common control of the ultimate controlling party are included
in the consolidated income statement and consolidated 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.
All significant intra-group balances and transactions are eliminated on consolidation.
- 18 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Consolidated financial statements - continued
7.2 Preparation of consolidated financial statements - continued
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 "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 amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of owners' equity of the
subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposal of interests in a subsidiary that does 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.
For the stepwise acquisition of equity interest till acquiring control after a few transactions and
leading to business combination not involving enterprises under common control, it shall be dealt
with based on whether it belongs to 'package deal': if it belongs to 'package deal', it will be
accounted for as a transactions to acquire control; if it does not belong to 'package deal', it will be
accounted for as a transaction to acquire control on acquisition date, and the fair value of acquiree'
shares held before acquisition date will be revalued, and the difference between fair value and
carrying amount will be recognized in profit or loss of the current period; if acquiree' shares held
before acquisition date involve changes in other comprehensive income and other changes in
owners' equity under equity method, it will be transferred to income of acquisition date.
When the Group loses control over a subsidiary due to disposal of equity investment or other
reasons, any retained interest is re-measured at its fair value at the date when control is lost. The
difference between (i) the aggregate of the consideration received on disposal and the fair value of
any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated
from the acquisition date according to the original proportion of ownership interests is recognized
as investment income in the period in which control is lost, and the goodwill is offset accordingly.
Other comprehensive income associated with investment in the former subsidiary is reclassified to
investment income in the period in which control is lost.
- 19 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Consolidated financial statements - continued
7.2 Preparation of consolidated financial statements - continued
When the Group loses control of a subsidiary in two or more arrangements (transactions), terms
and conditions of the arrangements (transactions) and their economic effects are considered. One
or more of the following indicate that the Group shall account for the multiple arrangements as a
'package deal': (i) they are entered into at the same time or in contemplation of each other; (ii) they
form a complete transaction designed to achieve an overall commercial effect; (iii) the occurrence
of one transaction is dependent on the occurrence of at least one other transaction; (iv) one
transaction alone is not economically justified, but it is economically justified when considered
together with other transactions. Where the transactions of disposal of equity investments in a
subsidiary until the loss of control are assessed as a package deal, these transactions are accounted
for as one transaction of disposal of a subsidiary with loss of control. Before losing control, the
difference of consideration received on disposal and the share of net assets of the subsidiary
continuously calculated from acquisition date is recognized as other comprehensive income. When
losing control, the cumulated other comprehensive income is transferred to profit or loss of the
period of losing control. If the transactions of disposal of equity investments in a subsidiary are not
assessed as a package deal, these transactions are accounted for as unrelated transactions.
8. Joint arrangements
There are two types of joint arrangements - joint operations and joint ventures. The classification is
based on the rights and obligations of the parties under the joint venture arrangement, taking into
account factors such as the structure, legal form and contractual terms of the arrangement. A joint
operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is
a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the arrangement.
The Group accounts for investments in joint ventures using equity method. Refer to Note (IV),
15.3.2 "Long-term equity investments accounted for using the equity method" for details.
When a group entity undertakes its activities under joint operations, the Group as a joint operator
recognizes in relation to its interest in a joint operation: - its assets, including its share of any assets
held jointly; its liabilities, including its share of any liabilities incurred jointly; its revenue from the
sale of its share of the output arising from the joint operation; its share of the revenue from the sale
of the output by the joint operation; and its expenses, including its share of any expenses incurred
jointly. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest
in a joint operation in accordance with the accounting standards applicable to the particular assets,
liabilities, revenues and expenses.
- 20 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. 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.
10. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies
10.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange
rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into functional currency
using the spot exchange rates at the balance sheet date. Exchange differences arising from the
differences between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognized in profit or loss for the period,
except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign
currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset
during the capitalization period; (2) exchange differences related to hedging instruments for the
purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3)
exchange differences arising from changes in the carrying amounts (other than the amortized cost)
of monetary items 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 foreign currency
monetary item constituting a net investment in a foreign operation, exchange differences arising
from changes in exchange rates are recognized as "exchange differences arising from translation of
financial statements denominated in foreign currencies" in other comprehensive income, and in
profit or loss for the period upon disposal of the foreign operation.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions; the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date when 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 in exchange rate) and is
recognized in profit or loss or as other comprehensive income.
- 21 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
10.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign
operation are translated from the foreign currency into RMB using the following method: assets
and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance
sheet date; shareholders' equity items except for unappropriated profit are translated at the spot
exchange rates at the dates on which such items arose; all items in the income statement as well as
items reflecting the distribution of profits are translated at the average exchange rates of the
accounting period of the consolidated financial statements; the opening balance of unappropriated
profit is the translated closing balance of the previous year's unappropriated profit; the closing
balance of unappropriated profit is calculated and presented on the basis of each translated income
statement and profit distribution item. The difference between the translated assets and the
aggregate of liabilities and shareholders' equity items is recognized as other comprehensive income
and included in shareholders' equity.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary
are translated at average exchange rate during the accounting period of consolidated financial
statements. The effect of exchange rate changes on cash and cash equivalents is regarded as a
reconciling item and presented separately in the cash flow statement as "effect of exchange rate
changes on cash and cash equivalents".
The closing balances and the comparative figures of previous year are presented at the translated
amounts in the previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the
accumulated exchange differences arising from translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under other
comprehensive income, to profit or loss in the period in which the disposal occurs.
In case of a disposal of part equity investments or other reason leading to lower interest percentage
in foreign operations but does not result in the Group losing control over a foreign operation, the
exchange differences arising from the translation of foreign currency statements related to this
disposed part are re-attributed to minority interests and are not recognized in profit or loss. For
partial disposals of equity interests in foreign operations which are associates or joint ventures, the
proportionate share of the accumulated exchange differences arising from translation of statements
of foreign operations is reclassified to profit or loss.
- 22 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.
For financial assets purchased or sold in regular ways, assets to be received and liabilities to be
assumed are recognized on the transaction date or assets sold are derecognized on that date.
Financial assets and financial liabilities are initially measured at fair value (the method for
determining the fair values of the financial assets and financial liabilities is set out in related
disclosures under "basis of accounting and principle of measurement" in note(IV) 5). For financial
assets and financial liabilities at fair value through profit or loss, transaction costs are immediately
recognized in profit or loss. For other financial assets and financial liabilities, transaction costs are
included in their initial recognized amounts. Upon initial recognition of contract assets, notes
receivable and accounts 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 relevant
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 considering all contractual terms of the financial asset or
financial liability (such as repayment in advance, extension, call option or other similar options etc.)
(without considering the expected credit losses).
The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognized net of principal repaid, plus or less the cumulative amortized
amount arising from amortization of the difference between the amount initially recognized and the
amount at the maturity date using the effective interest method, net of cumulative credit loss
allowance (only applicable to financial assets).
11.1 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.
- 23 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification, recognition and measurement of financial assets - continued
If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding, and the financial asset is
held within a business model whose objective is achieved by collecting contractual cash flows, the
Group classifies such financial asset as financial assets at amortized cost, which include cash and
bank balances, notes receivable, accounts receivable, other receivables and long-term receivables
etc.
If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding, 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 such financial asset as financial assets at
FVTOCI. The accounts receivable and notes receivable classified as at FVTOCI upon acquisition
are presented under 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.
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.
- 24 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification, recognition and measurement of financial assets - continued
Financial assets at FVTPL other than derivative financial assets are presented as financial assets
held-for-trading. 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.
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the
effective interest method. Gain or loss arising from impairment or derecognition is recognized in
profit or loss.
For financial assets measured at amortized cost, the Group recognizes interest income using
effective interest method. The Group calculates and recognizes interest income through gross
carrying amount of financial assets multiplying effective interest rate, 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 asset and the effective
interest rate through credit adjustment since initial recognition.
11.1.2 Financial assets at FVTOCI
For financial assets classified as at FVTOCI, except for the impairment losses or gains and the
interest income and exchange losses or gains calculated using the effective interest method which
are included in profit or loss for the period, the changes in fair value are included in other
comprehensive income. The amounts included in profit or loss for each period are equivalent to that
as if the financial assets have been always measured at amortized cost. Upon derecognition, the
accumulated gains or losses previously included in other comprehensive income are transferred to
profit or loss for the period.
Changes in fair value of non-trading equity instrument investments designated as financial assets at
FVTOCI are recognized in other comprehensive income, and the cumulative gains or losses
previously recognized in other comprehensive income allocated to the part derecognized are
transferred and included in retained earnings. During the period in which the Group holds the non-
trading equity instruments, revenue from dividends is recognized in profit or loss for the current
period when (1) the Group has established the right of collecting dividends; (2) it is probable that
the associated economic benefits will flow to the Group; and (3) the amount of dividends can be
measured reliably.
- 25 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification, recognition and measurement of financial assets - continued
11.1.3 Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value. Gain or loss arising from
changes in fair value and dividends and interest related to the financial assets are recognized in
profit or loss.
11.2 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 liabilities
that are not at FVTPL and financial guarantee contracts that are not qualified for derecognition due
to the transfer of financial assets or financial liabilities arising from continuing involvement of 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, notes receivable and accounts 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 lifetime ECL.
For other financial instruments (other than purchased or originated credit-impaired financial assets),
the Group assesses the changes in credit risk since initial recognition of relevant financial
instruments 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.
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.
- 26 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.1 Significant increase of 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 on which the Group becomes a party to the irrevocable commitment
is considered to be the date of initial recognition in the application of criteria related to the financial
instrument for impairment.
In particular, the following information is taken into account when assessing whether credit risk has
increased significantly:
(1) Significant changes in internal price indicators resulting from changes 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, etc.);
(3) Significant changes in the external market indicators of credit risk of the same financial
instrument or similar financial instruments with the same expected duration. These
indicators include: credit spreads, credit default swap prices against borrower, length of time
and extent to which the fair value of financial assets is less than their amortized cost, and
other market information related to the borrower (such as the borrower's debt instruments
or changes in the price of equity instruments);
(4) An actual or expected significant change in the financial instrument's external credit rating;
(5) An actual or expected decrease in the internal credit rating for the debtor;
(6) Adverse changes in business, financial or economic conditions that are expected to cause a
significant decrease 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 increase in credit risk of other financial instruments issued by the same debtor;
(9) Significant adverse changes in the regulatory, economic, or technological environment of
the debtor;
(10) Significant changes in the value of the collaterals or the quality of guarantees or credit
enhancements provided by third parties, 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 change 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;
- 27 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.1 Significant increase of credit risk - continued
(13) Significant change in the expected performance and repayment of the debtor;
(14) Significant change in the method used by the Group to manage the credit of 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.
11.2.2 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 becomes probable that the debtor will enter bankruptcy or other financial reorganizations.
(5) The disappearance of an active market for the 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 the
fact of credit loss.
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).
- 28 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.3 Determination of expected credit loss
The Group determines the ECL of relevant financial instruments using the following methods:
For financial assets, 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, 11.4.1.3 for the detail of accounting
policies), the credit loss 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 financial guarantee contracts (refer to Note IV, 11.4.1.3 for the detail of accounting
policies), the credit loss is the present value of the expected payments to reimburse the holder
for the credit loss incurred less any amounts that the Group expects to receive from the holder,
the debtor or any other party.
For financial assets credit-impaired at the balance sheet date, but not purchased or originated
credit-impaired, the credit loss is the difference between the gross carrying amount of the
financial assets and the present value of estimated future cash flows discounted at the original
effective interest rate.
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.
11.2.4 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 assets, which constitutes derecognition of relevant financial assets.
11.3 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.
- 29 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.3 Transfer of financial assets - continued
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 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.
For the 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 value of those parts at the date of transfer.
The difference between (1) the carrying amount allocated to the part derecognized on the date of
derecognition and (2) 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, 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.
For a transfer of a financial asset in its entirety that 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 liability upon receipt.
- 30 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments
Financial instruments issued by the Group or their components are classified into financial liabilities
or equity instruments on the basis of the substance of the contractual arrangements and the economic
nature not only the legal form, together with the definition of financial liability and equity
instrument on initial recognition.
11.4.1 Classification, recognition and measurement of financial liabilities
On initial recognition, financial liabilities are classified into financial liabilities at FVTPL and other
financial liabilities.
11.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives
classified as financial liabilities) and those designated as at FVTPL. Except for derivative financial
liabilities presented separately, the financial liabilities at FVTPL are presented as held-for-trading
financial liabilities.
A financial liability is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of repurchasing in the near term; or
On initial recognition, it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.
A financial liability may be designated as at FVTPL on initial recognition when one of the following
conditions is satisfied: (i) Such designation eliminates or significantly reduces accounting mismatch;
or (ii) The Group makes management and performance evaluation on a fair value basis, in
accordance with the Group's formally documented risk management or investment strategy, and
reports to key management personnel on that basis. (iii) The qualified hybrid financial instrument
combines financial asset with embedded derivatives.
Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses
arising from changes in fair value and any dividends or interest expenses paid on the financial
liabilities are recognized in profit or loss.
- 31 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.1 Classification, recognition and measurement of financial liabilities - continued
11.4.1.1 Financial liabilities at FVTPL - continued
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 changes in
fair value that are attributable to changes in the credit risk of that liability, which was recognized in
other comprehensive income, is transferred to retained earnings. Any dividend or interest expense
on the financial liabilities 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 through profit or loss, and includes the changes in
the financial liabilities in profit or loss for the period.
11.4.1.2 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.
- 32 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.1 Classification, recognition and measurement of financial liabilities - continued
11.4.1.3 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.
11.4.2 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to replace
the original financial liability with a new financial liability with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference between
the carrying amount of the financial liability (or part of the financial liability) derecognized and the
consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
11.4.3 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 in equity. Changes in fair value of equity
instruments are 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,
and dividends paid do not affect total amount of shareholders' equity.
- 33 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.5 Derivatives and embedded derivatives
Derivatives include forward exchange contracts, currency swaps, interest rate swaps and foreign
exchange options, etc. Derivatives are initially measured at fair value at the date when the derivative
contracts are entered into and are subsequently measured at fair value.
Derivatives embedded in hybrid contracts with a financial asset host are not separated by the Group.
The hybrid contract shall apply the relevant accounting standards regarding the classification of
financial assets as a whole.
Derivatives embedded in hybrid contracts with hosts that are not financial assets are separated and
treated as separate derivatives by the Group when they meet the following conditions:
(1) the economic characteristics and risks of the embedded derivative are not closely related to
those of the host contract;
(2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative;
(3) the hybrid contracts are not measured at fair value through profit or loss.
For the embedded derivative separated from the host contracts, the Group accounts for the host
contracts in the hybrid contracts with applicable accounting standards. When the embedded
derivatives whose fair value cannot be measured reliably by the Group according to the terms and
conditions of the embedded derivatives, the fair value of such derivatives are measured at the
difference between the fair value of the hybrid contracts and the fair value of the host contracts. By
adopting the above method, if the embedded derivative cannot be measured on a stand-alone basis
at the time when it is acquired or at subsequent balance sheet dates, the hybrid instrument is
designated as financial instruments at fair value through profit or loss as a whole.
11.6 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial
assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial
asset and settle the financial liability simultaneously, a financial asset and a financial liability shall
be offset and the net amount is presented in the balance sheet. Except for the above circumstances,
financial assets and financial liabilities shall be presented separately in the balance sheet and shall
not be offset.
11.7 Compound instruments
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.
- 34 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.7 Compound instruments - continued
Upon initial recognition, the fair value of liability portion is determined based on the prevailing
market price of the bonds containing no conversion option. The overall issue price of the convertible
bonds net of the fair value of the liability portion is considered as the value of the conversion option
that enables the bonds holder to convert the bonds to equity instruments, and is included in other
equity instruments.
The liability portion of the convertible bonds is subsequently measured at amortized cost using
effective interest method; the value of the conversion option classified as equity instrument is
remained 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 values. The
transaction cost relating to the equity instrument portion is directly included in equity instrument;
while the transaction cost relating to the liability portion is included in the carrying amount of the
liability, and amortized over the lifetime of the convertible bonds using effective interest method.
11.8 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 asset at fair value through
profit or loss ("FVTPL") by the Group, such financial asset is measured at fair value at the date of
reclassification and the difference between the original carrying amount and the fair value is
recognized in profit or loss for the period.
Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
other comprehensive income ("FVTOCI") 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 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.
- 35 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.8 Reclassification of financial instruments - continued
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 determined 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.
12. Receivables
12.1 Determination and accounting methods for expected credit losses of receivables
The Group assesses the credit risk of receivables with significantly different credit risks on an
individual basis, and determine the credit losses of receivables on a portfolio basis using an
impairment matrix for other receivables. The amount of increase in or reversal of allowance for
expected credit losses on receivables is included in profit or loss for the period as credit impairment
losses or gains.
12.2 Categories of portfolios for which bad debt provision is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination
The Group classifies receivables into groups A, B and C based on common risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial instrument,
credit risk rating, initial recognition date, remaining contractual term, industry of the debtor,
geographical location of the debtor, etc.
- 36 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Receivables - continued
12.2 Categories of portfolios for which bad debt provision is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination - continued
The Group makes internal credit ratings on customers and determines expected loss rate of
receivables. Basis for determining ratings and the expected loss rates are as follows:
Internal credit Expected average
Basis for determining portfolio
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 customers may have overdue payment based on historical experience
B 0.10-0.30
but they can make repayments.
The evidence indicates that the overdue credit risks of the customers are
C 0.30-50.00
significantly increased and there is probability of default on payment.
12.3 Determination criteria for provision of bad debts on an individual basis
Internal credit Expected average
Basis to determine the provision for bad debts on an individual basis
ratings loss ratio (%)
There is evidence showing that the receivables from customers are
impaired, or that the customers are experiencing significant financial
D 50.00-100.00
difficulties and thus the receivables will be irrecoverable in the
foreseeable future.
13. Receivables financing
Notes receivable classified as at FVTOCI should be listed as receivables financing within one year
(including one year) from the date of acquisition. Those over one year should be listed as other debt
investments. For related accounting policies, refer to Note (IV) 11 and Note (IV) 12.
14. Inventories
14.1 Categories of inventories, valuation method of inventories upon delivery, inventory count
system, and amortization method for ow cost and short-lived consumable items and
packaging materials
14.1.1 Categories of inventories
The Group's inventories mainly include raw materials, merchandise and others. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.
- 37 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Inventories - continued
14.1 Categories of inventories, valuation method of inventories upon delivery, inventory count
system, and amortization method for ow cost and short-lived consumable items and
packaging materials - continued
14.1.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method and
first-in-first-out method.
14.1.3 Inventory count system
The perpetual inventory system is maintained for stock system.
14.1.4 Amortization method 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.
14.2 Recognition criteria and provision method for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value, a provision for decline in value of
inventories is made.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes.
Net realizable value is determined on the basis of clear evidence obtained, after taking into
consideration the purposes of inventories being held and effect of post balance sheet events.
Provision for decline in value of inventories is made based on the excess of cost of inventory over
its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously
caused inventories to be written down below cost no longer exist so that the net realizable value of
inventories is higher than their cost, the original provision for decline in value is reversed and the
reversal is included in profit or loss for the period.
- 38 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments
15.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its
returns. Joint control is the contractually agreed sharing of control over an economic activity, and
exists only when the strategic financial and operating policy decisions relating to the activity require
the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee, the effect of potential voting rights of the investee
(for example, warrants and convertible debts) held by the investing enterprises or other parties that
are currently exercisable or convertible shall be considered.
15.2 Determination of initial investment cost
For a long-term equity investment acquired through business combination involving enterprises
under common control, 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 initial
investment cost of long-term equity investment and cash paid, non-cash assets transferred and
carrying amount of liabilities assumed, is adjusted in 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 ultimate controlling party at the date of
combination. The aggregate face value of the shares issued is 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 acquirer shall determine if these transactions are considered
to be a "package deal". If yes, these transactions are accounted for as a single transaction where
control is obtained. If no, the initial investment cost of the long-term equity investment is the share
of carrying amount of owners' equity of the acquiree in the consolidated financial statements of
ultimate controlling party at the date of combination. The difference between the initial investment
cost and the sum of carrying amount of equity investments previously held in the acquiree and the
new investment cost is adjusted to capital reserve. If the balance of capital reserve is not sufficient
to absorb the difference, any excess is adjusted to retained earnings. Other comprehensive income
recognized for the previously held equity investments by accounting treatment of equity method or
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 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.2 Determination of initial investment cost - continued
For a long-term equity investment acquired through business combination not involving enterprises
under common control, the investment cost of the long-term equity investment acquired is the cost
of acquisition.
The expenses incurred by the acquirer in respect of auditing, legal services, valuation and
consultancy services and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.
The long-term equity investment acquired otherwise than through a business combination is initially
measured at its cost. When the entity is able to exercise significant influence or joint control (but
not control) over an investee due to additional investment, the cost of long-term equity investments
is the sum of the fair value of previously-held equity investments determined in accordance with
Accounting Standards for Business Enterprises No.22 - Financial Instruments: Recognition and
Measurement (ASBE No. 22) and the additional investment cost.
15.3 Subsequent measurement and recognition of profit or loss
15.3.1 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. When
additional investment is made or the investment is recouped, the cost of the long-term equity
investment is adjusted accordingly. Investment income is recognized in the period in accordance
with the attributable share of cash dividends or profit distributions declared by the investee.
15.3.2 Long-term equity investments accounted for using the equity method
Except for investments in associates and joint ventures classified as held-for-sale partly or wholly,
the Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the Group only has rights to the net assets of the arrangement.
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.
- 40 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.3 Subsequent measurement and recognition of profit or loss - continued
15.3.2 Long-term equity investments accounted for using the equity method - continued
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 for the period. Meanwhile, the carrying amount of long-term equity
investment is adjusted; the carrying amount of long-term equity investment is decreased in
accordance with its share of the investee's declared profit or cash dividends; 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 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.
However, unrealized losses resulting from the Group's transactions with its associates and joint
ventures which represent impairment losses on the transferred assets are not eliminated.
The Group discontinues recognizing its share of net losses of the investee after the carrying amount
of the long-term equity investment together with any long-term interests that in substance form part
of its net investment in the investee are reduced to zero. In addition, 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 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually received
and receivable and the carrying amount is recognized in profit or loss for the period. For long-term
equity investments accounted for using the equity method, if the remaining interest after disposal
is still accounted for using the equity method, other comprehensive income previously recognized
using the equity method is accounted for on the same basis as would have been required if the
investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the
period on a pro rata basis; owners' equity recognized due to other changes in 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 using the equity method
or in accordance with the standards for the recognition and measurement of financial instruments
before obtaining the control over the investee, is accounted for on the same basis as would have
been required if the investee had directly disposed of related assets or liabilities, and transferred to
profit or loss for the period on a pro rata basis; other changes in owners' equity in the investee's net
assets recognized under the equity method (other than net profit or loss, other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
Where the Group loses control over the investee due to disposal of part of shares, and in preparing
the separate financial statements, remaining shares after disposal can have joint control or
significant influence over the investee, the equity method shall be adopted to adjust the remaining
shares as they are accounted for under equity method since the acquisition date. If remaining shares
after disposal cannot have joint control or significant influence over the investee, they are accounted
for in accordance with the standards for recognition and measurement of financial instruments, and
the difference between fair value on date of losing control and carrying amount is recognized in
profit or loss for the period. Other comprehensive income recognized using the equity method or in
accordance with the standards for the recognition and measurement of financial instruments before
losing control over the investee, is accounted for on the same basis as would have been required if
the investee had directly disposed of related assets or liabilities when the control over the investee
is lost; other changes in owners' equity in the investee's net assets recognized under the equity
method (other than net profit or loss, other comprehensive income and profit distribution) is
transferred to profit or loss for the period on a pro rata basis. Where remaining shares after disposal
are accounted for under equity method, other comprehensive income and other owners' equity are
transferred on a pro rata basis. Where remaining shares after disposal are accounted for in
accordance with the standards for 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 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.4 Disposal of long-term equity investments - continued
Where the Group loses joint control or significant influence over the investee after part disposal of
shares, remaining shares after disposal are accounted for in accordance with the standards for
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 would have been required if the investee had directly disposed
of related assets or liabilities when the equity method is not adopted, and 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.
The Group disposes of its equity investment in subsidiaries through multiple transactions step by
step until it loses control over the subsidiaries. If these transactions belong to "package deal", all
transactions are deemed as one transaction on disposal of equity investment in subsidiaries, and the
difference between the amount of disposal and carrying amount of long-term equity investment is
recognized as other comprehensive income, and transferred to profit or loss for the period when the
control is lost.
16. Investment properties
Investment property is the 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 the 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 the
investment properties are depreciated over their useful lives using the straight-line method. The
depreciation life, estimated residual value rate and annual depreciation rate of each category of
investment properties are as follows:
Annual depreciation rate
Category Depreciation life (year) Residual value rate (%)
(%)
Land use rights 21.25-50.00 - 2.00-4.71
Buildings and structures 10.00-43.17 5.00 2.20-9.50
An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from the disposal.
- 43 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Investment properties - continued
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.
17. Fixed assets and depreciation
Fixed assets are tangible assets that are held for use in the production or supply of goods or services,
for rental to others, or for administrative purposes, and have useful lives of more than one
accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Fixed assets are initially measured at cost. Upon being restructured into a stock company, the fixed
assets initially contributed by the state-owned shareholders are recognized based on the valuation
amounts confirmed by the state-owned assets administration department.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset 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 starting from the
month subsequent to the one in which it is ready for intended use. The depreciation life, estimated
net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
Depreciation life Residual value Annual
Category
(year) rate (%) depreciation rate (%)
Port and terminal facilities 5-50 5.00 1.90-19.00
Buildings and structures 5-30 5.00 3.17-19.00
Machinery and equipment, furniture
3-20 5.00 4.75-31.67
and fixture and other equipment
Motor vehicles and cargo ships 5-25 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 accounting estimates.
- 44 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period, borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.
Construction in progress is accounted for by categories of projects initiated, and is transferred to a
fixed asset when it is ready for intended use. The criteria for judging the intended use shall be one
of the following:
(1) The physical construction (including installation) of fixed assets has been fully or
substantially completed;
(2) The trial production or trial operation has been carried out and the results of which indicate
that the asset is capable of normal operation or producing qualified products on a stable
basis, or the results of which indicate that it is capable of normal functioning or operation;
(3) The fixed assets and intangible assets acquired and constructed have met the design or
contractual requirements or are basically in compliance with the design or contractual
requirements.
19. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition, construction or production of a qualifying asset is interrupted abnormally and when the
interruption is for a continuous period of more than 3 months. Capitalization is suspended until the
acquisition, construction or production of the asset is resumed. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds. Where funds are borrowed under general-
purpose borrowings, the Group determines the amount of interest to be capitalized on such
borrowings by applying a capitalization rate to the weighted average of the excess of cumulative
expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate
is the weighted average of the interest rates applicable to the general-purpose borrowings. During
the capitalization period, exchange differences related to a specific-purpose borrowing denominated
in foreign currency are all capitalized. Exchange differences in connection with general-purpose
borrowings are recognized in profit or loss for the period in which they are incurred.
- 45 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Intangible assets
20.1 Useful life and the basis for determination, estimates, amortization method or review
procedures
Intangible assets include land use rights, terminal operating rights and others.
An intangible asset is measured initially at cost. Upon being restructured into a stock company, the
intangible assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department. Except for
terminal operating rights, when an intangible asset with a finite useful life is available for use, its
original cost is amortized over its estimated useful life. The terminal operating rights under the
output method are amortized over periods according to the ratio of the estimated minimum
guaranteed throughput to the estimated minimum guaranteed total throughput during the operation
period. When the estimated minimum guaranteed throughput cannot be measured reliably, the
straight-line method will be used for amortization. An intangible asset with indefinite useful life
will not be amortized.
The amortization method, useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortization method Useful life (year) Residual value (%)
From the date of the land transfer, it
Land use rights Straight-line method is amortized using the straight-line -
method over the land transfer period
Output method - it is amortized
over periods according to the ratio
of the estimated minimum
guaranteed throughput to the
estimated minimum guaranteed
Terminal operating total throughput; straight-line
Output/Straight-line method -
right method - it is amortized using the
straight-line method over the
shortest of the estimated useful life,
the beneficial period specified in the
contract and the effective life as
defined by law
It is amortized using the straight-
line method over the shortest of the
Others Straight-line method estimated useful life, the beneficial -
period specified in the contract and
the effective life as defined by law
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.
- 46 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Intangible assets - continued
20.2 Scope of R&D expenditure and method for accounting treatment
Expenditure during the research phase is recognized in profit or loss for 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 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 available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits, including the evidence of the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset.
(4) the availability of adequate technical, financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase, the
Group recognizes all of them in profit or loss for the year. The costs of intangible assets generated
by the internal research only include the total expenditure incurred for the period from the time
point of capitalization to the time point when the intangible assets are ready for intended use. For
the identical intangible asset, the expenditures recorded as expenses before they qualify for
capitalization during the development process are not adjusted.
The Group classifies the expenditures on an internal research and development project into
expenditures in the research phase and expenditures in the development phase. The scope of R&D
expenditures refer to those directly related to the R&D activities, including wages, salaries, and
welfare expenses of personnel directly engaged in R&D activities, materials directly consumed in
R&D activities, depreciation expenses for instruments and equipment used in R&D activities, travel,
transportation, and communication expenses required for research and experimental development,
etc. Technical feasibility and economic viability studies are adopted as specific criteria for
classifying the research and development phases once such studies have been evaluated and
approved.
- 47 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
21. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that long-term equity
investments, investment properties measured at cost model, 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.
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment
testing, goodwill is considered together with the related assets group(s) or portfolio of assets
group(s), i.e., goodwill is reasonably allocated to the related assets group(s) or portfolio of assets
group(s) expected to benefit from the synergies of the combination. An impairment loss is
recognised if the recoverable amount of the assets group(s) or portfolio of assets group(s) (including
goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the
carrying amount of any goodwill allocated to such assets group(s) or portfolio of assets group(s),
and then to the other assets of the group pro-rata on the basis of the carrying amount of each asset
(other than goodwill) in the group.
Once the impairment loss of above-mentioned assets is recognized, it shall not be reversed in any
subsequent period.
22. 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.
23. Contract liabilities
Contract liabilities refer to 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.
- 48 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Employee benefits
24.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make full payments
within 12 months after the annual reporting period during which relevant services are provided by
the employees, 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 and the work injury insurance,
housing funds, trade union funds and employee education funds, short-term paid absence, short-
term profit sharing plan, non-monetary welfare and other short-term benefits.
Short-term employee benefits payable are recognized as liabilities, with a corresponding charge to
profit or loss for the period or in the costs of relevant assets in the accounting period in which
employees provide services to the Group. Staff welfare expenses incurred by the Group are
recognized in profit or loss for the period or the costs of relevant assets based on the actually
occurred amounts when they actually occurred. Non-monetary staff welfare expenses are measured
at fair value.
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, etc. and
payments of housing funds, as well as union running costs and employee education costs provided
in accordance with relevant requirements, are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities,
with a corresponding charge to profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
24.2 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 enterprise for the
services rendered by the employees, except 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 the agreements the Group entered
into with the employees on the post-employment benefits or the regulations or measures established
by the Group for provisions of the post-employee benefits, among which the defined contribution
plans refer 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 employees render services to the Group, the amounts payable
calculated based on the defined contribution plans are recognized as liabilities and included in profit
or loss for the period or costs of related assets.
- 49 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Employee benefits - continued
24.2 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 and net assets of defined benefit plans are recognized
in profit or loss for the period or costs of related assets. Remeasurement of the net defined benefit
liabilities (assets) (including actuarial gains and losses, the return on planned assets, excluding
amounts included in net interest on net defined benefit liabilities (assets), and any changes in the
effect of the asset ceiling, excluding amounts included in net interest on net defined benefit
liabilities (assets)) are recognized in other comprehensive income.
The deficit or surplus resulting from the present value of the defined benefit plan obligations less
the fair value of the defined benefit plan assets is recognized as a net defined benefit plan liability
or net asset.
24.3 Termination benefits
Termination benefits refer to the compensations the Group pay to the employees for terminating the
employment relationship with employees before the expiry of the employment contracts or
encouraging employees to accept voluntary redundancy. When the Group provides termination
benefits to employees, employee benefit liabilities are recognized for termination benefits, with a
corresponding charge to 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.
24.4 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.
- 50 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Employee benefits - continued
24.4 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 compensation costs arising from other long-term employee benefits are
recognized as three components: service cost, net interest on net liability or net asset for other long-
term employee benefits, and changes resulting from the remeasurement of the net liability or net
asset for other long-term employee benefits. The total net amount of these items is included in profit
or loss for the period or in the costs of related assets.
The Group provides internal retirement benefits to employees accepting the internal retirement
arrangements. Internal retirement benefits refer to the payments of salaries and social security
contributions for employees who reach the retirement age regulated by the country and are approved
to quit the job voluntarily. For internal retirement benefits, the internal retirement benefits the Group
is expected to pay during the period from the date when employees stop providing services to the
date of normal retirement are recognized as liabilities at the present value and included in profit or
loss for the period when relevant recognition requirements of the internal retirement benefits are
met.
25. Provisions
Provisions are recognized when the Group has a present obligation related to a contingency, 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 the 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.
- 51 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Share-based payments
A share-based payment is a transaction which the Group grants equity instruments, in return for
services rendered by employees or other parties. The Group's share-based payments include equity-
settled share-based payments.
Equity-settled share-based payments in exchange for services rendered by employees are measured
at 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 could be vested immediately, with a corresponding increase
in capital reserve.
27. Preferred stock, perpetual bonds and other financial instruments
The consideration received by the Group for the issuance of equity instruments is included in
shareholders' equity after deducting transaction costs. Repurchase the consideration and transaction
costs paid by the Group's equity instruments to reduce shareholders' equity.
The Group classifies financial instruments, or their components, as financial liabilities or equity
instruments at initial recognition based on the contractual terms of the issued perpetual bonds and
their reflected economic substance, combined with the definitions of financial liabilities and equity
instruments.
For financial instruments such as perpetual bonds classified as equity instruments, interest expense
or dividend (dividend) distributions are treated as profit distributions of the Group, and their
repurchases, write-offs, etc., are treated as changes in equity, and related transaction costs are
deducted from equity.
28. Revenue recognition
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business
The Group's revenue is mainly from port business, bonded logistics business and other businesses.
The Group recognizes revenue based on the transaction price allocated to the performance
obligation when the Group satisfies a performance obligation in the contract, namely, when the
customer obtains control over relevant goods or services. A performance obligation is a
commitment that the Group transfers a distinct goods or service to a customer in the contract.
- 52 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
The Group evaluates the contract on the contract start date, identifies each individual performance
obligation contained in the contract, and determines whether each individual performance
obligation is satisfied during a period of time or at a point in time. 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 or services 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,
revenue is recognized at a point in time when the customer obtains control over the relevant goods
or services.
The Group adopts output method, i.e., the value of goods or services transferred to customers to
determine the appropriate progress of performance. Where the progress cannot be determined
reasonably, the revenue is recognized based on the amount of cost that is expected to be
compensated based on the cost already incurred, until the progress of performance is reasonably
determined.
The transaction price is the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties and amounts expected to be refunded to a customer. In determining the
transaction price, the Group should consider the effects of variable consideration, significant
financing components in the contract, non-cash consideration and consideration payable to
customers.
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.
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
probably occurred amount. The transaction price including variable consideration shall not exceed
the amount of the cumulatively recognized revenue which is unlikely to be significantly reversed
- 53 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
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.
- 54 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
If the customer pays non-cash consideration, the Group determines the transaction price based on
the fair value of the non-cash consideration. If the fair value of non-cash consideration cannot be
reasonably estimated, the Group shall determine the transaction price indirectly by reference to the
stand-alone selling price of the goods or services promised to transfer to the customer.
In case of the existence of a significant financing component in the contract, the Group shall
determine the transaction price on the assumption that the customer has paid the amount payable
by cash when obtaining the control over the goods or services. Differences between transaction
price and contract consideration are amortized using effective interest method during the contract
life. At the inception of the contract, if the period between when the Group transfers a promised
goods or service to a customer and when the customer pays for that goods or service will be one
year or less, the Group would not consider the significant component in the contract.
The Group assesses whether it controls each specified goods or service before that goods 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.
For port business, the revenue from the handling of containers and bulk cargos is recognized over
time based on the progress of completed services, and the revenue from the storage of containers
and bulk cargos is recognized on a straight-line basis over the period of storage.
- 55 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
For bonded logistics business, the revenue is recognized based on the progress of services rendered,
where the progress of completed services is determined based on the proportion of days on services
provided to the estimated total number of service days. As at the balance sheet date, the Group has
re-estimated the progress of completed bonded logistics service so that it reflects the changes in
performance status.
28.2 Similar operations under different business models which involve different revenue
recognition and measurement methods
The Group has no similar operations under different business models which involve different
revenue recognition and measurement methods.
29. Contract costs
29.1 Costs of obtaining a contract
For the incremental cost of obtaining the contract (cost that will not occur if the contract is not
obtained) that is expected to be recoverable, it is recognized as an asset. 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.
29.2 Costs to fulfil a contract
If the costs incurred in fulfilling a contract are not within the scope of any standards other than
Revenue Standards, the Group recognizes an asset 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 enhance resources of the Group 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 revenue recognition of the
goods or services to which the asset relates and recognized in profit or loss for the period.
- 56 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Contract costs - continued
29.3 Impairment loss of assets related to contract costs
In determining the impairment losses of assets related to contract costs, the Group first determines
the impairment losses of other assets related to contracts recognized in accordance with other ASBE;
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 the 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 was made.
30. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to
the Group at no consideration. A government grant is recognized only when the Group can comply
with the conditions attached to the grant and the Group will receive the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset, it is measured
at fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A
government grant measured at a nominal amount is recognized immediately in profit or loss for the
period.
30.1 Determination basis and accounting treatment of government grant related to assets
Government grants of the Group mainly include grants for intelligent system, etc., and these
government grants relate to assets as they will form long-term assets.
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.
- 57 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Government grants - continued
30.2 Determination basis and accounting treatment of government grant related to income
Government grants of the Group mainly include grants for business development and specialized
operations, etc., and these government grants relate to income as they will not form long-term assets.
The Group classifies government grants that are difficult to be distinguished as government grants
related to income aggregately.
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 for the period 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.
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.
31. Income tax
The income tax expenses include current income tax and deferred income tax.
31.1 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.
31.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax
base, or between the nil carrying amount of those items that are not recognized as assets or liabilities
and their tax base that can be determined according to tax laws, deferred tax assets and liabilities
are recognized using the balance sheet liability method.
Deferred tax 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) and will not result in taxable
temporary differences and deductible temporary differences in equivalent amounts at the time of
transaction, no deferred tax asset or liability is recognized.
- 58 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Deferred tax assets/ deferred tax liabilities - continued
31.2 Deferred tax assets and deferred tax liabilities - continued
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 differences and it is probable that the temporary
differences will not be reversed in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with investments in subsidiaries, associates and joint
ventures are recognized to the extent that it is probable 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 asset is realized or the liability is settled according to tax laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except
when they arise from transactions or events that are directly recognized in other comprehensive
income or shareholders' equity, in which case they are recognized in other comprehensive income
or 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.
31.3 Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax
liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously,
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
- 59 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases
A lease is a contract in which the lessor, for a certain period of time, gives the lessee the right to
use the assets to obtain a consideration.
For contracts entered into, the Group assesses whether the contract is, or contains, a lease at the
commencement date. Such contract will not be reassessed unless the terms and conditions of the
contract are subsequently changed.
32.1 The Group as lessee
32.1.1 Separating components of a lease
For a contract that contains one or more lease components or non-lease components, the Group
separates each individual lease and non-lease component and allocates the contract consideration
in the relative proportion of the sum of the individual price of each lease component and the
individual price of the non-lease component.
32.1.2 Right-of-use assets
Except for short-term leases and leases of low-value assets, the Group recognizes the right-of-use
assets of the leases at the commencement date. The commencement date of the lease is the date
from which the lessor provides the leased assets to make them available for use by the Group. Right-
of-use assets are initially measured at cost. The cost includes:
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 Group in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease.
Right-of-use assets are depreciated by the Group in accordance with the ASBE No.4 Fixed Assets.
If the Group is reasonably certain, that the lease will transfer ownership of the underlying asset to
the Group by the end of the lease term, the right-of-use assets are depreciated from the
commencement date to the end of the useful life of the underlying asset. Otherwise, the right-of-
use assets are depreciated from the commencement date to the earlier of the end of the useful life
of the right-of-use assets or the end of the lease term.
The Group applies ASBE No. 8 Impairment of Assets, to determine whether the right-of-use assets
are impaired and to account for any impairment loss identified.
- 60 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.3 Lease liabilities
Except for short-term leases and leases of low-value assets, the Group initially measures lease
liabilities at the present value of the outstanding lease payments at the commencement date. In
calculating the present value of the lease payments, the Group uses the implicit interest rate of the
lease as the discount rate. If it is not possible to determine the implicit interest rate of the lease,
the incremental borrowing rate shall be applied.
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, and included in profit or loss or
charged to cost of related assets.
After the commencement date, the Group shall remeasure the lease liabilities and make
corresponding adjustments to the related right-of-use assets in the following circumstances. 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 Group shall recognize the difference in profit or loss:
where 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.
where 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
rate is applied to calculate the present value.
- 61 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.4 Short-term leases and leases of low-value assets
The Group elects not to recognize right-of-use assets or lease liabilities for short-term leases and
leases of low-value assets, i.e., port and terminal facilities, buildings, machinery and equipment,
furniture, fixture and other equipment, motor vehicles and cargo ships and others. 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 a lease that, the value of the underlying asset is
low when it is new. For short-term leases and leases of low-value assets, the Group recognizes the
lease payments in profit or loss, or in the cost of related assets on a straight-line basis over each
period within the lease term.
32.1.5 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 liabilities based on the present value of the
changed lease payments and the revised discount rate.
For lease modifications that decrease the scope of the lease or shorten the term of the lease, the
Group should decrease the carrying amount of the right-of-use assets with any gain or loss relating
to the partial or full termination of the lease recognized in profit or loss. For re-measurement of
lease liabilities due to other lease modifications, a corresponding adjustment is made to the carrying
amount of the right-of-use assets.
- 62 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.6 Sale and leaseback transactions
The Group as seller-lessee
The Group applies the requirements of Revenue Standard to determine whether the transfer of an
asset is accounted for as a sale of that asset. If the transfer of an asset does not constitute a sale, the
Group shall continue to recognize the transferred assets, recognize a financial liability equal to the
transfer proceeds and accounts for such financial liability in accordance with the Accounting
Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and Measurement.
If the transfer of an asset is a sale, the Group shall measure the right-of-use assets arising from the
leaseback at the proportion of the previous carrying amount of the asset that relates to the right of
use, and recognize any gain or loss for rights transferred to the lessor only.
32.2 The Group as lessor
32.2.1 Separating components of a lease
For a contract that contains lease components and non-lease components, the Group allocates the
contract consideration in accordance with the Revenue Standards on allocation of transaction prices,
based on the respective individual prices of the lease components and the non-lease components.
32.2.2 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.
32.2.2.1 The Group as lessor under operating leases
The Group recognizes lease receipts from operating leases as rental income using a straight-line
method over the respective periods of the lease term. The Group's initial direct costs incurred in
connection with operating leases are capitalized when the costs incurred, and are allocated to profit
or loss for the period over the lease term on the same basis as the recognition of rental 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 for the period when they are actually
incurred.
- 63 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.2 The Group as lessor - continued
32.2.2 Classification of leases - continued
32.2.2.2 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 lease 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.
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, provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
residual value of 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 the guarantee obligations.
Variable lease receipts not included in the net lease investment are recognized in profit or loss when
they are actually incurred.
Interest income for each period over the lease term is calculated and recognized by the Group at a
fixed periodic rate.
32.2.3 Subleases
As the lessor of a sublease, the Group accounts for the original lease contract and the sublease
contract on a separate basis. 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.
- 64 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.2 The Group as lessor - continued
32.2.4 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.
A lease modification should be accounted for as a separate lease if there is a modification in a
finance lease and both of the followings apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope with any appropriate adjustment to that stand-alone price.
For a modification to a finance lease that is not accounted for as a separate lease, the Group accounts
for the modification as follows:
If the lease would have been classified as an operating lease had the modification been
effective at the commencement 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 assets at the amount equal to the net lease investment before the effective date
of the modification;
If the lease would have been classified as a finance lease had the modification been effective
at the commencement date, the Group should account for it in accordance with the provisions
on contract modification and renegotiation under Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement.
32.2.5 Sale and leaseback transactions
The Group as the buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitute 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 Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement. If the transfer of an
asset constitutes a sale, the Group accounts for the purchase of the asset in accordance with other
applicable Accounting Standards for Business Enterprises and accounts for the lease of the asset.
- 65 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
33. Exchange of non-monetary assets
When the non-monetary assets are of commercial substance and the fair value of assets received or
the assets given up can be measured reliably, the non-monetary transactions are measured at fair
value. For the asset received, the fair value of the asset given up and related taxes payable are
recognized as the cost at initial recognition; For the asset given up, at derecognition, the difference
between the fair value and the carrying amount is recognized in profit or loss for the current period.
When there is clear evidence indicating that the fair value of the received asset is more reliable, for
the asset received, the fair value of the asset received and related taxes payable are recognized as
the cost at initial recognition; For the asset given up, at derecognition, the difference between the
fair value of the asset received and the carrying amount of the asset given up is recognized in profit
or loss for the current period.
When the non-monetary transactions fail to meet criteria to be measured at fair value, the
transactions are measured at carrying amounts. For the asset received, the carrying amount of the
asset given up and relevant taxes payable are recognized as the cost of at initial recognition. For the
asset given up, at derecognition, no profit or loss is recognized.
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
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.
(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 experience
of the Group's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.
- 66 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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
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 the
current period; changes which not only affect the current but the future periods should be recognized
in the 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
carrying amounts of assets and liabilities in the future are as follows:
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 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 plans of subsidiaries, associates and joint ventures and relevant provisions of tax law.
For retained earnings of the investee which are not expected to be distributed, since the profits will
be used for the daily operation and future development of the investee, no deferred tax liabilities
are recognized. If the profits to be actually distributed in future years are more or less than those
expected, corresponding deferred tax liabilities will be recognized or reversed in profit or loss for
the period at the earlier of the date on which the profit distribution plan is changed and the date on
which the profit distribution is declared.
Deferred tax assets are recognized based on the deductible temporary differences and the
corresponding tax rate, to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
future years are 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 value of fixed assets and intangible assets
The Group assesses the estimated useful lives and residual value of fixed assets and intangible assets.
Such estimate is made by reference to the historical experience of actual useful lives and residual
value of fixed assets and intangible assets of similar nature and function, and is subject to significant
changes due to technical innovation and fierce industry competition. Where the estimated useful
lives and residual value 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.
- 67 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
1. Changes in significant accounting policies
1.1 Interpretation No. 17 of the Accounting Standards for Business Enterprises
The Ministry of Finance issued the Interpretation No. 17 of the Accounting Standards for Business
Enterprises (the "Interpretation No.17) on 25 October 2023, which clarifies the provisions on "the
division of current liabilities and non-current liabilities".
According to the Interpretation No. 17, when the Group classifies the liquidity of liabilities, it only
considers whether the Group has the substantive right to postpone the settlement of liabilities to
more than one year after the balance sheet date (hereinafter referred to as "the right to postpone the
settlement of liabilities"), without considering whether the Group has the subjective possibility of
exercising the above rights.
For the liabilities arising from the Group's loan arrangements, if the right of the Group to postpone
the repayment of the liabilities depends on whether the Group has complied with the conditions
specified in the loan arrangements (hereinafter referred to as "contractual conditions"), the Group
only considers the contractual conditions that should be complied with on or before the balance
sheet date when dividing the liquidity of the relevant liabilities, without considering the impact of
contractual conditions that should be complied with by the Group after the balance sheet date.
If the Group classifies the above options as equity instruments and recognizes them separately as
equity components of composite financial instruments in accordance with the Accounting Standards
for Business Enterprises No. 37- Disclosure of financial instruments, the liquidity division of the
liabilities that the Group pays off by delivering its own equity instruments at the option of the
counterparty will not be affected; On the contrary, if the above options cannot be classified as equity
instruments, it will affect the liquidity classification of the liabilities.
The adoption of this provision has not had a significant impact on the Group's financial position and
operating results.
- 68 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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
unloading business and part of modern 6%
Value-added tax
service industries
("VAT") (Note 3)
Income from sale of real estate, property
3%, 5%, 9%
management, lease of real estate, etc.
Income from leases of movable properties 13%
Social contribution tax (Note 4) Income 0.65%-7.6%
Deed tax Land use right and property transfer amount 3%-5%
Property tax 70% of cost of property or rental income 1.2% or 12%
City maintenance and
VAT paid 1%-7%
construction tax
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 1-12 per square meter
Amount of pollution equivalents of the
RMB 1.2-1.8 per pollution
Environmental protection tax taxable air pollutants converted based on the
equivalent
quantity of pollutions discharged
- 69 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VII) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated by
local tax laws. Among them, the Company is 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 the other overseas subsidiaries are subject to enterprise income
tax rates between 10% 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 on the PRC enterprise income tax. For companies incorporated in
certain regions (including Hong Kong and Singapore), if the companies meet the relevant
conditions, 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 TCP Participaes S.A. (hereinafter referred
to as "TCP"), an overseas subsidiary of the Group, to the local government.
2. Tax preference
Certain 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 of China may be subject to enterprise income tax preference in
accordance with relevant local tax policies. The preferential tax rate for small and micro enterprises
applicable to some subsidiaries of the Group in China is 20%.
- 70 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VII) TAXES - continued
2. Tax preference - continued
From 1 January 2023 to 31 December 2027, the urban land use tax for certain domestic subsidiaries
of the Group 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. The preferential tax rate for small and micro
enterprises applicable to some subsidiaries of the Group in China is 20%.
Certain subsidiaries of the Group in China are small and micro enterprises and are subject to a
preferential tax rate of 20%. In accordance with the Announcement on Relevant Tax and Fee
Policies for Further Supporting the Development of Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 of the Ministry of Finance and the
State Administration of Taxation in 2023), for small and micro enterprises, the taxable income is
calculated at a reduced rate of 25% and the enterprise income tax is paid at a rate of 20% from 1
January 2023 and 31 December 2027.
As approved by Shekou Taxation Sub-bureau of Shenzhen Tax Bureau, State Administration of
Taxation on 12 October 2017, certain subsidiaries of the Group are exempted from VAT for
auxiliary logistics services (warehousing services, excluding delivery services) provided to
overseas enterprises.
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item 30/06/2024 31/12/2023
Cash 2,344,695.38 974,692.93
Including: RMB 517.60 2,767.60
USD 96,206.03 225,565.37
HKD 10,098.78 25,259.89
BRL 7,777.06 8,625.45
IDR 67,250.93 -
Others 2,162,844.98 712,474.62
Bank deposits (Note 1) 15,038,094,493.62 13,934,385,410.92
Including: RMB 10,693,934,315.23 8,215,456,953.08
USD 1,635,920,738.01 3,189,067,302.34
EUR 916,008,002.85 655,188,558.31
BRL 771,895,935.94 283,264,276.30
HKD 611,503,425.18 1,211,715,308.91
AUD 26,890,222.40 36,381,245.06
FCFA 212,237,437.17 295,232,843.14
IDR 120,749,166.50 -
Others 48,955,250.34 48,078,923.78
Other cash and bank balances (Note 2) 48,475,976.12 54,207,918.46
Including: LKR 41,615,058.75 39,287,209.66
RMB 6,860,917.37 14,920,544.77
HKD - 164.03
Funds deposited in Finance Company (Note 3) 2,289,627,387.58 2,090,078,155.93
Total 17,378,542,552.70 16,079,646,178.24
Including: Total amount of funds deposited overseas 3,147,340,153.44 4,143,910,318.92
- 71 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
1. Cash and bank balances - continued
Note 1: The interest receivable and funds frozen for ETC card business which are included in the
balance of bank deposits at the end of the period amounted to RMB 14,428,916.61 and
RMB 12,000.00, respectively.
Note 2: The funds frozen for litigation, the balance of the securities account, the restricted banker's
letter of guarantee, and the restricted performance bond, which are included in the balance
of other cash and bank balances at the end of the period, amounted to RMB 1,826,085.98,
RMB 214,951.56, RMB 4,213,730.40, RMB 42,221,208.18.
Note 3: The funds deposited in Finance Company included the interest receivable amounting to
RMB 9,628,050.73.
2. Held-for-trading financial assets
Item 30/06/2024 31/12/2023
Financial assets classified as at FVTPL 3,180,085,926.18 4,568,806,108.84
Including: Investments in debt instruments 450,209.48 450,209.48
Structured deposits 3,179,635,716.70 4,568,355,899.36
Total 3,180,085,926.18 4,568,806,108.84
3. Notes receivable
(1) Category of notes receivable
Category 30/06/2024 31/12/2023
Bank acceptance 206,216,580.72 315,150,195.09
Commercial acceptance - 10,000,000.00
Total 206,216,580.72 325,150,195.09
Note: For the period from 1 January to 30 June 2024, no provision for bad debts of notes receivable
is assessed on an individual basis and, the acceptor of bank acceptance and commercial
acceptance for which provision for bad debts is assessed on a portfolio basis has high credit
ratings with no significant credit risks, therefore, no provision for bad debts is made.
(2) As at 30 June 2024, the Group has no notes receivable pledged.
(3) As at 30 June 2024, the Group has no endorsed or discounted and not yet matured notes
receivable at the balance sheet date.
(4) For the period from 1 January to 30 June 2024, there were no notes receivable written off.
- 72 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable
(1) Overall situation of accounts receivable
Category 30/06/2024 31/12/2023
Accounts receivable 2,159,135,291.52 1,194,923,829.34
Less: provision for credit loss 89,801,895.32 91,022,363.09
Total 2,069,333,396.20 1,103,901,466.25
(2) Aging analysis of accounts receivable
Aging 30/06/2024 31/12/2023
Within 1 year 2,069,209,329.92 1,112,613,215.99
1-2 years 29,695,348.28 23,735,983.67
2-3 years 7,393,175.19 3,139,299.76
More than 3 years 52,837,438.13 55,435,329.92
Total 2,159,135,291.52 1,194,923,829.34
(3) Disclosure of accounts receivable by category
Expected 30/06/2024 31/12/2023
Credit
credit loss Gross carrying Bad debt Carrying Gross carrying Bad debt Carrying
rating
rate (%) amount provision amount amount provision amount
A 0.00-0.10 1,223,611,599.97 431,584.03 1,223,180,015.94 622,585,699.82 428,822.70 622,156,877.12
B 0.10-0.30 702,183,964.35 1,330,485.43 700,853,478.92 428,914,672.70 552,173.90 428,362,498.80
C 0.30-50.00 155,016,866.11 9,716,964.77 145,299,901.34 62,942,396.67 9,638,519.30 53,303,877.37
D 50.00-100.00 78,322,861.09 78,322,861.09 - 80,481,060.15 80,402,847.19 78,212.96
Total 2,159,135,291.52 89,801,895.32 2,069,333,396.20 1,194,923,829.34 91,022,363.09 1,103,901,466.25
(4) Accounts receivable disclosed by method of bad debt provision:
30 June 2024 31 December 2023
Gross carrying amount Bad debt provision Gross carrying amount Bad debt provision
Category
Proportion Proportion Carrying amount Proportion Proportion Carrying amount
Amount Amount Amount Amount
(%) (%) (%) (%)
Bad debt provision assessed on an
78,322,861.09 3.63 78,322,861.09 100.00 - 80,481,060.15 6.74 80,402,847.19 99.90 78,212.96
individual basis
Bad debt provision assessed on a
2,080,812,430.43 96.37 11,479,034.23 0.55 2,069,333,396.20 1,114,442,769.19 93.26 10,619,515.90 0.95 1,103,823,253.29
portfolio basis
Total 2,159,135,291.52 100.00 89,801,895.32 2,069,333,396.20 1,194,923,829.34 100.00 91,022,363.09 1,103,901,466.25
Bad debt provision assessed on an individual basis:
30 June 2024
Name Gross carrying Bad debt Reason for provision
Proportion (%)
amount provision
Entity 1 24,908,308.44 24,908,308.44 100.00 Low probability of recovery
Entity 2 14,965,689.98 14,965,689.98 100.00 Low probability of recovery
Entity 3 6,936,029.60 6,936,029.60 100.00 Low probability of recovery
Entity 4 6,211,165.11 6,211,165.11 100.00 Low probability of recovery
Entity 5 5,700,298.86 5,700,298.86 100.00 Low probability of recovery
Others 19,601,369.10 19,601,369.10 100.00 Low probability of recovery
Total 78,322,861.09 78,322,861.09 100.00
- 73 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(4) Accounts receivable disclosed by method of bad debt provision: - continued
Bad debt provision assessed on a portfolio basis:
30 June 2024
Name
Accounts receivable Bad debt provision Proportion (%)
A 1,223,611,599.97 431,584.03 0.04
B 702,183,964.35 1,330,485.43 0.19
C 155,016,866.11 9,716,964.77 6.27
Total 2,080,812,430.43 11,479,034.23 0.55
(5) Measurement of expected credit loss at an amount equivalent to the lifetime expected credit
loss
Lifetime expected Lifetime expected
Item credit loss (not credit loss (credit- Total
credit-impaired) impaired)
At 1 January 2024 15 80,402,847.19 91,022,363.09
Gross carrying amount of accounts receivable
at 1 January 2024
- Transfer to credit-impaired accounts receivable - - -
- Reversal of accounts receivable that are not
- - -
credit-impaired
Provision for the period 10 - 1,843,140.23
Reversal for the period -1 -877,330.14 -1,381,380.28
Effect of changes in the scope of consolidation 79 - 785,325.91
Transfer-out due to derecognition of financial
- - -
assets (including direct write-down)
Other changes -1,264,897.67 -1,202,655.96 -2,467,553.63
At 30 June 2024 11,479,034.23 78,322,861.09 89,801,895.32
(6) Details of bad debt provision
Changes for the period
Effect of
Category 01/01/2024 Recovery or changes in the Charge-off or Other 30/06/2024
Provision
reversal scope of write-off changes
consolidation
Bad debt provision
assessed on an 80,402,847.19 - -877,330.14 - - -1,202,655.96 78,322,861.09
individual basis
Bad debt provision
assessed on a 10,619,515.90 1,843,140.23 -504,050.14 785,325.91 - -1,264,897.67 11,479,034.23
portfolio basis
Total 91,022,363.09 1,843,140.23 -1,381,380.28 785,325.91 - -2,467,553.63 89,801,895.32
- 74 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(7) The top five balances of accounts receivable at the end of the period classified by debtor
Name of Relationship Proportion of the amount to the Bad debt provision at
30/06/2024 Aging
entity with the Group total accounts receivable (%) 30/06/2024
Entity 6 Non-related party 445,385,165.01 Within 2 years 20.63% 3,975.42
Entity 7 Non-related party 67,832,380.45 Within 1 year 3.14% 7,614.60
Entity 8 Non-related party 64,391,302.11 Within 2 years 2.98% 15,991.80
Entity 9 Non-related party 61,351,516.16 Within 1 year 2.84% -
Entity 10 Non-related party 60,808,588.38 Within 2 years 2.82% 1,555.56
Total 699,768,952.11 32.41% 29,137.38
5. Receivables financing
(1) Classification of receivables financing
Item 30/06/2024 31/12/2023
Bank acceptance measured at fair value - 2,001,669.46
(2) As at 30 June 2024, the Group has no pledged receivables financing.
(3) As at 30 June 2024, the Group has no receivables financing that have been endorsed or
discounted and have not yet matured at the balance sheet date.
(4) As at 30 June 2024, no provision for bad debt of receivables financing is assessed on an
individual basis and, the acceptor of bank acceptance for which provision for bad debts is
assessed on a portfolio basis has high credit ratings with no significant credit risks, therefore,
no provision for credit loss is made.
- 75 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Prepayments
(1) Aging analysis of prepayments
30/06/2024 31/12/2023
Gross Gross
Aging Proportion Impairment Proportion Impairment
carrying carrying
(%) provision (%) provision
amount amount
Within 1 year 67,568,125.83 98.51 - 36,798,888.01 97.70 -
1-2 years 766,912.89 1.12 - 615,427.75 1.63 -
2-3 years 122,834.11 0.18 - 129,361.04 0.34 -
More than 3 years 129,420.23 0.19 - 120,875.50 0.33 -
Total 68,587,293.06 100.00 - 37,664,552.30 100.00 -
(2) As at 30 June 2024, the Group has no significant prepayments aged more than one year.
(3) The top five balances of prepayments at the end of the period classified by entities
Proportion of the
Relationship with closing balance to Reason for not being
Name of entity 30/06/2024 Aging
the Company the total settled
prepayments (%)
Unsettled prepayment for
Entity 1 Non-related party 16,413,333.95 Within 1 year 23.93 construction expenditure
Within 1 year, 1-2 Unsettled prepayment for
Entity 2 Non-related party 5,375,380.00 years, and 2-3 years
7.84 communication charges
Unsettled prepayment for
Entity 3 Non-related party 3,748,122.62 Within 1 year 5.46 premium
Within 1 year, 1-2 Unsettled prepayment for
Entity 4 Non-related party 3,595,609.43 years, and 2-3 years
5.24 premium
Unsettled prepayment for
Entity 5 Non-related party 1,719,782.40 Within 1 year 2.51 premium
Total 30,852,228.40 44.98
7. Other receivables
7.1 Presentation of other receivables
Item 30/06/2024 31/12/2023
Dividends receivable 493,079,578.90 343,386,866.06
Other receivables 566,491,149.20 596,628,127.95
Total 1,059,570,728.10 940,014,994.01
- 76 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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 investee 30/06/2024 31/12/2023
China Nanshan Development (Group) Incorporation
277,605,000.00 203,577,000.00
("Nanshan Group")
Liaoning Port Co., Ltd. 51,863,401.35 -
Qingdao Port International Co., Ltd 44,888,121.12 -
Zhanjiang Merchants Port City Investment Co., Ltd.
38,809,044.77 38,809,044.77
("Merchants Port City")
Dalian Port Logistics Network Co., Ltd. 30,605,256.76 30,605,256.76
Yingkou Gangxin Technology Co., Ltd. 23,881,213.75 23,881,213.75
COSCO Logistics (Zhanjiang) Co., Ltd. 13,449,001.16 13,449,001.16
Tin-can Island Container Terminal Ltd 6,901,587.25 21,960,680.22
Tianjin Port Container Terminal Co., Ltd 5,354,125.89 -
China Shenzhen Ocean Shipping Agency Co., Ltd - 11,232,000.00
Others 216,400.00 216,400.00
Sub-total 493,573,152.05 343,730,596.66
Less: Bad debt provision 493,573.15 343,730.60
Carrying amount 493,079,578.90 343,386,866.06
(2) Significant dividends receivable aged more than 1 year
Whether bad debts
Name of Reason for not being have been incurred
30/06/2024 31/12/2023 Aging
investee recovered and the basis for
determination
Undergoing relevant
formalities, expected to
Nanshan Group 129,549,000.00 129,549,000.00 2-3 years No
be recovered by the end
of 2024
- 77 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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 - continued
(3) Changes in provision for credit loss of dividends receivable
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2024 343,730.60 - - 343,730.60
Balance at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period 149,842.55 - - 149,842.55
Reversal for the period - - - -
Transfer-out due to - - - -
derecognition of financial
assets (including direct
write-down)
Other changes - - - -
At 30 June 2024 493,573.15 - - 493,573.15
(4) Details of bad debt provision
Changes for the period
Category 31/12/2023 Recovery or Charge-off or Other 30/06/2024
Provision
reversal write-off changes
Bad debt provision assessed
- - - - - -
on an individual basis
Bad debt provision assessed
343,730.60 149,842.55 - - - 493,573.15
on a portfolio basis
Total 343,730.60 149,842.55 - - - 493,573.15
- 78 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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) Aging analysis of other receivables
30/06/2024 31/12/2023
Aging Other Bad debt Proportion Other Bad debt Proportion
receivables provision (%) receivables provision (%)
Within 1 year 20837790097 141792001 0.68 26138006565 338661318 1.30
1-2 years 7712787917 512019478 6.64 26863456116 18966972048 70.61
2-3 years 36635063805 18519963153 50.55 18902937418 467513605 2.47
More than 3 years 53626777627 42989529894 80.16 83432212722 75900653055 90.97
Total 1,18812419446 62163304526 1,553,366128.21 95673800026
(2) Disclosure of other receivables by nature
Item 30/06/2024 31/12/2023
Operation compensation (Note 1) 522,457,774.94 857,551,782.45
Advance payments 202,671,641.34 264,603,548.43
Land compensation (Note 2) 89,630,000.00 89,630,000.00
Guarantees and deposits 26,203,758.03 24,853,374.42
Special subsidy 21,560,000.00 24,800,000.00
Others 325,601,020.15 291,927,422.91
Sub-total 1,188,124,194.46 1,553,366,128.21
Less: Bad debt provision 621,633,045.26 956,738,000.26
Total 566,491,149.20 596,628,127.95
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 31 December 2023, a bad debt provision has been made for the accumulated
outstanding compensation amounting to RMB 857,551,782.45. During the period from 1
January to 30 June 2024, the Group received the operation compensation amount
equivalent to RMB 316,356,000.00 and accordingly revised the allowance for bad debt
provision of RMB 316,356,000.00. As at 30 June 2024, a bad debt provision has been
made for the accumulated outstanding compensation amounting to RMB
522,457,774.94.
Note 2: On 9 October 2021, Zhanjiang Port, a subsidiary of the Company, entered into the
Agreement on Recovery of State-owned Land Use Rights with the local government.
Pursuant to the Agreement, Zhanjiang Port shall return the land of approximately 195.68
mu located in Zhanjiang Comprehensive Bonded Zone on the east of Shugang Avenue,
which is amounting to RMB 89,630,000.00. The above-mentioned land has been
returned before 31 December 2021. As at 30 June 2024, the above-mentioned land
compensation of RMB 89,630,000.00 has not been recovered yet.
- 79 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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 of other receivables
30/06/2024 31/12/2023
Lifetime Lifetime Lifetime Lifetime
Expected credit 12-month 12-month
Credit rating expected credit expected credit expected credit expected credit
loss rate (%) expected credit Total expected credit Total
loss (not credit- loss (credit- loss (not credit- loss (credit-
loss loss
impaired) impaired) impaired) impaired)
A 0.00-0.10 566,500,631.74 - - 566,500,631.74 596,631,116.95 - - 596,631,116.95
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 621,623,562.72 621,623,562.72 - - 956,735,011.26 956,735,011.26
Gross carrying amount 566,500,631.74 - 621,623,562.72 1,188,124,194.46 596,631,116.95 - 956,735,011.26 1,553,366,128.21
Bad debt provision 9,482.54 - 621,623,562.72 621,633,045.26 2,989.00 - 956,735,011.26 956,738,000.26
Carrying amount 566,491,149.20 - - 566,491,149.20 596,628,127.95 - - 596,628,127.95
Significant other receivables for which bad debt provision is assessed on an individual basis (credit rating of D)
Name 30/06/2024 Bad debt provision ECL rate (%) Reason for provision
Entity 1 522,457,774.94 522,457,774.94 100.00 Expected to be unrecoverable (Note)
Entity 2 64,841,250.09 64,841,250.09 100.00 Expected to be unrecoverable
Entity 3 14,000,000.00 14,000,000.00 100.00 Expected to be unrecoverable
Others 20,324,537.69 20,324,537.69 100.00 Expected to be unrecoverable
Total 621,623,562.72 621,623,562.72
Note: Refer to Note (VIII) 7.3(2).
- 80 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(4) Provision, reversal and write-off of credit loss of other receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2024 2,989.00 - 956,735,011.26 956,738,000.26
Balance of other receivables
at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period 6,493.54 - 571425 12,207.79
Reversal for the period - - -316,357,900.00 -316,357,900.00
Effect of changes in the scope of - - - -
consolidation
Charge-off for the period - - - -
Write-off for the period - - - -
Other changes - - -18,759,262.79 -18,759,262.79
At 30 June 2024 9,482.54 - 621,623,562.72 621,633,045.26
(5) Details of bad debt provision
Changes for the period
Effect of changes
Category 01/01/2024 Recovery or Charge-off 30/06/2024
Provision in the scope of Other changes
reversal or write-off
consolidation
Bad debt provision
assessed on an 956,735,011.26 5,714.25 -316,357,900.00 - - -18,759,262.79 621,623,562.72
individual basis
Bad debt provision
assessed on a 2,989.00 6,493.54 - - - - 9,482.54
portfolio basis
Total 956,738,000.26 12,207.79 -316,357,900.00 - - -18,759,262.79 621,633,045.26
Among which, the bad debt provision recovered or reversed for the period that is significant in
amount is listed as below:
Basis to determine the
Amount recovered original proportion of
Name Reason for retrieve Recovered through
or reversed bad debt provision and
its reasonableness
According to the
settlement agreement, Based on prior years'
Entity 1 316,356,000.00 Cash recovery
the debtor repaid part of financial position
the receivables
Total 316,356,000.00
- 81 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(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) The Group has no write-off of other receivables in this period.
(7) The top five balances of other receivables at the end of the period classified by debtor
Closing
Proportion to
Name of Relationship with balance of
Nature 30/06/2024 Aging total other
entity the Group provision for
receivables (%)
credit loss
Operation 2-3 years, more than
Entity 1 Non-related party 522,457,774.94 43.97 522,457,774.94
compensation 3 years
Within 1 year, 1-2
Advance
Entity 4 Non-related party 122,674,255.48 years, 2-3 years， 10.33 -
payments
more than 3 years
Land
Entity 5 Non-related party 89,630,000.00 2-3 years 7.54 -
compensation
Within 1 year, 1-2
Advance
Entity 2 Non-related party 64,841,250.09 years, 2-3 years, 5.46 64,841,250.09
payments
more than 3 years
Advance
Entity 6 Related party 36,822,042.40 more than 3 years 3.10 -
payments
Total 836,425,322.91 70.40 587,299,025.03
8. Inventories
(1) Category of inventories
30/06/2024 31/12/2023
Provision for Provision for
Item Gross carrying Carrying Gross carrying Carrying
decline in value decline in value
amount amount amount amount
of inventories of inventories
Raw materials 274,520,414.48 1,238,035.93 273,282,378.55 217,097,512.98 1,234,628.38 215,862,884.60
Finished goods 23,568,015.76 - 23,568,015.76 2,520,205.91 - 2,520,205.91
Others 999,395.80 - 999,395.80 515,102.36 - 515,102.36
Total 299,087,826.04 1,238,035.93 297,849,790.11 220,132,821.25 1,234,628.38 218,898,192.87
(2) Provision for decline in value of inventories
Increase Decrease Effect of
translation of
financial
Category 01/01/2024 Reversal or 30/06/2024
Provision Others Others statements
charge-off
denominated in
foreign currencies
Raw materials 1,234,628.38 - - - - 3,407.55 1,238,035.93
- 82 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Inventories - continued
(2) Provision for decline in value of inventories - continued
Provision for decline in value of inventories is made on an item-by-item basis and no provision for
decline in value of inventories is made on a portfolio basis.
(3) As at 30 June 2024, the Group has no capitalized borrowing cost in the balance of
inventories.
9. Non-current assets due within one year
(1) Presentation of non-current assets due within one year
Item 30/06/2024 31/12/2023
Long-term receivables due within one year 14,203,411.03 17,468,849.83
Less: Bad debt provision 14,203.38 17,468.85
Carrying amount 14,189,207.65 17,451,380.98
(2) Provision for bad debts
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2024 17,468.85 - - 17,468.85
Gross carrying amount of long-term
receivables at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period - - - -
Reversal for the period -3,265.47 - - -3,265.47
Transfer-out due to
derecognition of financial assets - - - -
(including direct write-down)
Other changes - - - -
At 30 June 2024 14,203.38 - - 14,203.38
(3) Details of bad debt provision
Changes for the period
Category 31/12/2023 Recovery or Charge-off or Other 30/06/2024
Provision
reversal write-off changes
Bad debt provision assessed
17,468.85 - -3,265.47 - - 14,203.38
on a portfolio basis
Total 17,468.85 - -3,265.47 - - 14,203.38
- 83 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Other current assets
(1) Category of other current assets
Item 30/06/2024 31/12/2023
Input tax to be deducted and certified 93,774,614.21 115,121,766.13
Prepaid taxes 89,035,264.58 71,771,659.09
Others - 2,780,075.65
Total 182,809,878.79 189,673,500.87
11. Long-term receivables
(1) Details of long-term receivables
30/06/2024 31/12/2023 Range of discount
Item Gross carrying Bad debt Carrying Gross carrying Bad debt Carrying rate at the end of
amount provision amount amount provision amount period
Advances to shareholders (Note 1) 1,184,335,484.28 1,184,335.48 1,183,151,148.80 1,167,470,819.35 1,167,470.82 1,166,303,348.53 3.65%-8.50%
Guarantees for finance leases 1,419,005.18 1,419.00 1,417,586.18 10,695,876.01 10,695.88 10,685,180.13 0-5.37%
Land compensation receivable (Note 2) 2,691,932,000.00 - 2,691,932,000.00 2,691,932,000.00 - 2,691,932,000.00
Others 169,062.40 - 169,062.40 4,996,969.31 - 4,996,969.31
Total 3,877,855,551.86 1,185,754.48 3,876,669,797.38 3,875,095,664.67 1,178,166.70 3,873,917,497.97
Less: Long-term receivables
14,203,411.03 14,203.38 14,189,207.65 17,468,849.83 17,468.85 17,451,380.98
due within 1 year
Long-term receivables due after 1 year 3,863,652,140.83 1,171,551.10 3,862,480,589.73 3,857,626,814.84 1,160,697.85 3,856,466,116.99
Note 1: It mainly represents the aggregate principal and interest receivable from Port of Newcastle
and Terminal Link SAS, equivalent to RMB 937,157,345.83 and 212,878,138.43,
respectively.
On 14 June 2018, China Merchants Port Holdings Company ("CM Port"), a subsidiary of
the Company, provided a long-term loan to Port of Newcastle, which matures in 2023 and
has been extended to 31 December 2034 as stipulated in an agreement entered into during
the year. The loan carries interest at a rate of weighted average interest rate on debt as
determined by local authority of Port of Newcastle plus 0.5%.
On 31 May 2023, CM Port, a subsidiary of the Company, provided a long-term loan to
Terminal Link SAS for making additional capital injection to Saigang project and charged
interest to Terminal Link SAS at an interest rate of 6.15%.
Note 2: On 5 November 2019, Shantou CM Port Group Co., Ltd. ("Shantou Port") entered into
the Contract for the Acquisition of State-Owned Land Use Rights in Shantou with Shantou
Land Reserve Center. Pursuant to the contract, the land and attached buildings of
approximately 370.96 mu located in Zhuchi Deepwater Port on the south of Zhongshan
East Road of Shantou should be returned to Shantou Land Reserve Center by Shantou
Port, which is amounting to RMB1,558,032,000.00. Among them, 183.63 mu of land and
attached buildings have been transferred in 2019, and the remaining 187.33 mu of land
and attached buildings have been transferred in 2020. As at 30 June 2024, the land
compensation totalling RMB1,158,032,000.00 has not yet been recovered.
- 84 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(1) Details of long-term receivables - continued
Note 2: - continued
On 21 August 2020, Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Land Reserve Center of Shantou Haojiang
District. Pursuant to the contract, the land and attached buildings of approximately 152.34
mu located in Yutianwen, Queshi, Haojiang District, Shantou, should be returned to Land
Reserve Center of Shantou Haojiang District by Shantou Port, which is amounting to
RMB250,000,000.00. The transfer of above-mentioned land and attached buildings was
completed before 31 December 2020. As at 30 June 2024, the land compensation totalling
RMB200,000,000.00 has 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 RMB2,724,876,000.00. Among them, 320 mu of
land and attached buildings were transferred by 31 December 2020, which is amounting
to RMB1,344,000,000.00, and the remaining 328.78 mu of land and attached buildings
have not been transferred. As at 30 June 2024, the land compensation totalling RMB
1,333,900,000.00 has not yet been recovered.
(2) Long-term receivables disclosed by method of bad debt provision
30 June 2024 31 December 2023
Gross carrying amount Bad debt provision Gross carrying amount Bad debt provision
Category Carrying
Proportion Proportion Proportion Proportion Carrying amount
Amount Amount amount Amount Amount
(%) (%) (%) (%)
Bad debt provision assessed
3,877,855,551.86 100.00 1,185,754.48 0.03 3,876,669,797.38 3,875,095,664.67 100.00 1,178,166.70 0.03 3,873,917,497.97
on a portfolio basis
Total 3,877,855,551.86 100.00 1,185,754.48 3,876,669,797.38 3,875,095,664.67 100.00 1,178,166.70 3,873,917,497.97
Bad debt provision assessed on a portfolio basis
30 June 2024
Name
Accounts receivable Bad debt provision Proportion (%)
A 3,877,855,551.86 1,185,754.48 0.03
Total 3,877,855,551.86 1,185,754.48 ——
- 85 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(3) Provision for credit loss of long-term receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2024 1,178,166.70 - - 1,178,166.70
Gross carrying amount of long-term receivables
at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period 22,497.85 - - 22,497.85
Reversal for the period -14,910.07 - - -14,910.07
Charge-off for the period - - - -
Write-off for the period - - - -
Other changes - - - -
At 30 June 2024 1,185,754.48 - - 1,185,754.48
(4) Details of bad debt provision
Changes for the period
Effect of
Category 01/01/2024 Recovery or Charge-off or changes in the 30/06/2024
Provision
reversal write-off scope of
consolidation
Advances to shareholders 1,167,470.82 21,774.73 -4,910.07 - - 1,184,335.48
Guarantees for finance
10,695.88 723.12 -10,000.00 - - 1,419.00
leases
Total 1,178,166.70 22,497.85 -14,910.07 - - 1,185,754.48
(5) There are no long-term receivables written off during the period.
- 86 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments
(1) Details of long-term equity investments
Changes for the period
Effect of translation of Closing balance of
Reconciliation of
Investees 01/01/2024 Investment Investment Investment income Other equity Cash dividends or Provision for financial statements 30/06/2024 provision for
other comprehensive Others
increase decrease under equity method movements profits declared impairment denominated in foreign impairment
income
currencies
I. Joint ventures
Euro-Asia Oceangate
S.à.r.l.
2,045,841,414.96 - - 55,117,511.36 - - - - - 11,636,506.99 2,112,595,433.31 -
Port of Newcastle 2,075,023,699.91 - - 12,734,170.16 - - - - - -38,034,172.87 2,049,723,697.20 -
Others 4,837,128,220.35 160,468,537.76 - 116,686,368.24 - 2,407,793.83 -78,602,290.59 - - -10,627,904.03 5,027,460,725.56 -
Sub-total 8,957,993,335.22 160,468,537.76 - 184,538,049.76 - 2,407,793.83 -78,602,290.59 - - -37,025,569.91 9,189,779,856.07 -
II. Associates
Shanghai International
Port (Group)
37,212,885,138.77 - - 2,356,313,485.80 6,968,157.13 29,150,493.27 -1,123,385,809.34 - - - 38,481,931,465.63 -
Co., Ltd. ("Shanghai
Port Group")
Nanshan Group 6,559,245,040.52 - - -27,433,343.85 1,224,895.21 -3,659,407.99 -74,028,000.00 - - 220,239.64 6,455,569,423.53 -
Terminal Link SAS 6,453,040,914.20 - - 183,301,622.28 -108,327,524.98 - -395,260,400.37 - - 35,452,104.03 6,168,206,715.16 -
Liaoning Port Co., Ltd.
4,124,157,791.26 - - 51,318,446.09 1,948,172.48 3,686,240.18 -51,851,456.34 - - -2,431,128.07 4,126,828,065.60 362,420,814.81
("Liaoning Port")
Shenzhen China
Merchants Qianhai
Industrial Development
7,445,725,318.18 - - 8,845,554.89 - - - - - - 7,454,570,873.07 -
Co., Ltd.
Ningbo Zhoushan Port
Company Limited 18,631,154,114.31 - - 518,924,362.26 12,893,217.46 2,362,875.58 -408,578,523.82 - - - 18,756,756,045.79 -
("Ningbo Zhoushan")
Others 7,281,916,123.81 - - 81,937,095.05 -7,906,016.82 -122,137.68 -40,568,401.93 - - 29,766,157.88 7,345,022,820.31 2,360,221.45
Sub-total 87,708,124,441.05 - - 3,173,207,222.52 -93,199,099.52 31,418,063.36 -2,093,672,591.80 - - 63,007,373.48 88,788,885,409.09 364,781,036.26
Total 96,666,117,776.27 160,468,537.76 - 3,357,745,272.28 -93,199,099.52 33,825,857.19 -2,172,274,882.39 - - 25,981,803.57 97,978,665,265.16 364,781,036.26
- 87 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments - continued
（2） Impairment on long-term equity investments
Decrease Effect of
translation of
Effect of financial
Item 01/01/2024 consolidation Increase statements 30/6/2024
Amount Reason
scope change denominated
in foreign
currencies
Liaoning Port 359,989,686.74 - - - - 2,431,128.07 362,420,814.81
HOA THUONG CORPORATION 2,344,389.02 - - - - 15,832.43 2,360,221.45
Total 362,334,075.76 - - - - 2,446,960.50 364,781,036.26
- 88 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Investments in other equity instruments
(1) Details of investments in other equity instruments
Changes for the period
Losses Reasons for
Gains Accumulated Accumulated
included in Dividend designation as at
included in Effect of gains included in losses included
other income fair value through
Item 01/01/2024 other changes in the 30/06/2024 other in other
Addition Reduction comprehen recognized for other
comprehensi scope of comprehensive comprehensive
sive income the period comprehensive
ve income for consolidation income income
for the income
the period
period
It is a non-trading
China Ocean Shipping Agency
147,689,164.25 - - - - - 147,689,164.25 - 134,179,164.25 - equity instrument
Shenzhen Co., Ltd.
investment
It is a non-trading
Others 9,772,483.91 - - - - - 9,772,483.91 - 3,873,283.91 -3,128,300.00 equity instrument
investment
Total 157,461,648.16 - - - - - 157,461,648.16 - 138,052,448.16 -3,128,300.00
(2) There are no other equity instruments derecognized for the period.
- 89 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Other non-current financial assets
Item 30/06/2024 31/12/2023
Financial assets at FVTPL 1,322,285,501.80 877,576,442.83
Including: Investments in equity instruments 1,322,285,501.80 877,576,442.83
Including: Qingdao Port International Co., Ltd. 1,294,931,788.20 850,222,729.23
Others 27,353,713.60 27,353,713.60
15. Investment properties
(1) Investment properties measured at cost
Buildings and
Item Land use rights Total
structures
I. Cost
1. At 1 January 2024 136,657,995.75 6,191,446,084.83 6,328,104,080.58
2. Increase for the period - - -
(1) Purchases - - -
(2) Transfer from fixed assets - - -
(3) Transfer from intangible assets - - -
3. Decrease for the period - 11,200,535.47 11,200,535.47
4. At 30 June 2024 136,657,995.75 6,180,245,549.36 6,316,903,545.11
II. Accumulated depreciation
and amortization
1. At 1 January 2024 47,569,315.68 1,322,159,796.11 1,369,729,111.79
2. Increase for the period 1,285,600.37 90,376,225.02 91,661,825.39
(1) Provision for the period 1,285,600.37 90,376,225.02 91,661,825.39
(2) Transfer from fixed assets - - -
(3) Transfer from intangible assets - - -
3. Decrease for the period - 9,629,919.74 9,629,919.74
4. At 30 June 2024 48,854,916.05 1,402,906,101,39 1,451,761,017.44
III. Impairment provision
1. At 1 January 2024 - - -
2. Increase for the period - - -
3. Decrease for the period - - -
4. At 30 June 2024 - - -
IV. Carrying amount
1. At 30 June 2024 87,803,079.70 4,777,339,447.97 4,865,142,527.67
2. At 1 January 2024 89,088,680.07 4,869,286,288.72 4,958,374,968.79
- 90 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Investment properties - continued
(2) Investment properties without ownership certificates
Carrying amount at Carrying amount at Reasons for not obtaining Expected time of
Item
30/06/2024 31/12/2023 certificate of title completion
Some buildings and structures
Buildings, structures, The certificate of title is
21,794,213.72 24,363,424.74 have not yet obtained
and land use rights underway
certificates of land use rights
16. Fixed assets
16.1 Summary of fixed assets
Item 30/06/2024 31/12/2023
Fixed assets 29,565,260,352.64 28,986,501,937.59
Disposal of fixed assets 122,121.62 36,388.76
Total 29,565,382,474.26 28,986,538,326.35
16.2 Fixed assets
(1) Details of fixed assets
Machinery and
Port and terminal Buildings and equipment, Motor vehicles and
Item Total
facilities structures furniture, fixture cargo ships
and other equipment
I. Cost —— —— —— —— ——
1. At 1 January 2024 31,137,311,072.50 1,825,694,719.33 16,741,310,306.89 2,283,384,722.04 51,987,700,820.76
2. Increase for the period 1,453,964,906.25 28,442,849.96 462,566,028.83 31,127,492.12 1,976,101,277.16
(1) Purchase 11,433,971.76 4,292.73 52,626,663.32 12,186,346.61 76,251,274.42
(2) Transfer from development expenditure 10,386,092.09 - 1,259,192.09 - 11,645,284.18
(3) Transfer from construction in progress 851,627,786.84 - 95,481,576.99 7,367,747.19 954,477,111.02
(4) Transfer from right-of-use assets 580,517,055.56 - - - 580,517,055.56
(5) Effect of changes in the scope of consolidation - 17,238,021.76 306,374,658.26 11,573,398.32 335,186,078.34
(6) Transfer from other accounts - 11,200,535.47 6,823,938.17 - 18,024,473.64
3. Decrease for the period 2,812,695.05 2,707,303.50 58,906,559.66 23,028,482.54 87,455,040.75
(1) Disposal or retirement 2,812,695.05 2,707,303.50 58,906,559.66 23,028,482.54 87,455,040.75
(2) Transfer to investment properties - - - - -
4. Adjustments to the amount carried forward -12,641,774.30 - -1,501,024.85 -764,601.77 -14,907,400.92
5. Reclassification 757,294.28 - -757,294.28 - -
6. Effect of translation of financial statements
-202,208,161.52 283,458.61 -99,668,057.86 3,352,694.64 -298,240,066.13
denominated in foreign currencies
7. At 30 June 2024 32,374,370,642.16 1,851,713,724.40 17,043,043,399.07 2,294,071,824.49 53,563,199,590.12
II. Accumulated depreciation
1. At 1 January 2024 10,597,481,043.45 625,019,594.44 10,412,566,166.66 1,152,627,595.54 22,787,694,400.09
2. Increase for the period 555,881,913.12 53,909,288.98 514,988,998.55 59,472,007.75 1,184,252,208.40
(1) Provision 465,480,951.91 34,424,362.70 401,430,870.35 52,669,697.51 954,005,882.47
(2) Transfer from right-of-use assets 90,400,961.21 - - - 90,400,961.21
(3) Effect of changes in the scope of consolidation - 9,855,006.54 111,735,339.71 6,802,310.24 128,392,656.49
(4) Transfer from other accounts - 9,629,919.74 1,822,788.49 - 11,452,708.23
3. Decrease for the period 1,766,490.93 2,676,406.24 55,257,510.72 21,877,058.41 81,577,466.30
(1) Disposal or retirement 1,766,490.93 2,676,406.24 55,257,510.72 21,877,058.41 81,577,466.30
(2) Transfer to investment properties - - - - -
4. Reclassification - - - - -
5. Effect of translation of financial statements
-46,716,877.75 274,224.00 -60,405,136.33 995,782.20 -105,852,007.88
denominated in foreign currencies
6. At 30 June 2024 11,104,879,587.89 676,526,701.18 10,811,892,518.16 1,191,218,327.08 23,784,517,134.31
III. Impairment provision
1. At 1 January 2024 196,464,146.22 9,414,527.47 7,625,809.39 - 213,504,483.08
2. Increase for the period - - - - -
3. Disposal or retirement for the period - - - - -
4. Effect of translation of financial statements
- - -82,379.91 - -82,379.91
denominated in foreign currencies
5. At 30 June 2024 196,464,146.22 9,414,527.47 7,543,429.48 - 213,422,103.17
IV. Carrying amount
1. At 30 June 2024 21,073,026,908.05 1,165,772,495.75 6,223,607,451.43 1,102,853,497.41 29,565,260,352.64
2. At 1 January 2024 20,343,365,882.83 1,191,260,597.42 6,321,118,330.84 1,130,757,126.50 28,986,501,937.59
- 91 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.2 Fixed assets - continued
(2) The Group has no fixed assets that are temporarily idle as at 30 June 2024.
(3) Fixed assets leased out under operating leases
Carrying amount at Carrying amount at
Item
30/06/2024 31/12/2023
Buildings and structures 190,589,210.25 190,979,949.85
Port and terminal facilities 29,507,670.01 35,709,105.32
Machinery and equipment, furniture, fixture and other equipment 1,919,110.89 5,012,091.76
Total 222,015,991.15 231,701,146.93
(4) Fixed assets without ownership certificates
Carrying amount at Carrying amount at
Item Remark
30/06/2024 31/12/2023
This is mainly due to the fact that certain buildings
Buildings, structures,
and structures have not yet obtained the land use
port and terminal 1,493,207,830.28 1,539,024,375.12
rights of the corresponding land and the approval
facilities
procedures have not yet been completed.
(5) Details of fixed assets depreciated but still in use and temporarily idle at the end of the
period, and fixed assets disposed and retired in the period:
Item Amount Remark
Cost of fixed assets fully depreciated but still in use
5,135,496,637.02
at the end of the period
Cost of fixed assets temporarily idle at the end of the period -
Fixed assets disposed and retired in the period:
Including: Cost of fixed assets disposed and retired in the period 87,455,040.75
Net book value of fixed assets disposed and retired in the period 5,877,574.45
Loss on disposal or retirement of fixed assets in the period -2,457,031.16
(6) The details of the Group's fixed assets with restricted ownership as at 30 June 2024 are set
out in Note (VIII) 64.
16.3 Disposal of fixed assets
Item 30/06/2024 31/12/2023
Machinery and equipment, furniture, fixture
122,121.62 36,388.76
and other equipment
Total 122,121.62 36,388.76
- 92 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress
(1) Presentation of construction in progress
Item 30/06/2024 31/12/2023
Construction in progress 2,532,718,789.30 2,907,014,186.24
Materials for construction of fixed assets 14,258,300.01 2,803,095.22
Total 2,546,977,089.31 2,909,817,281.46
(2) Details of construction in progress
30/06/2024 31/12/2023
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Port and terminal
1,649,625,833.91 - 1,649,625,833.91 2,380,800,758.33 - 2,380,800,758.33
facilities
Infrastructure 372,662,030.76 - 372,662,030.76 252,638,193.22 - 252,638,193.22
Berths and yards 365,037,381.64 - 365,037,381.64 178,174,354.90 - 178,174,354.90
Cargo ships under
1,726,548.68 - 1,726,548.68 1,726,548.68 - 1,726,548.68
construction
Others 143,666,994.31 - 143,666,994.31 93,674,331.11 - 93,674,331.11
Total 2,532,718,789.30 - 2,532,718,789.30 2,907,014,186.24 - 2,907,014,186.24
- 93 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(3) Movement of significant items of construction in progress
Effect of
translation of Proportion of Interest
Amount of Including:
Other financial accumulated capitalizatio
Increase for Transfer to Construction accumulated Capitalized Capital
Item Budget amount 01/01/2024 decreases for statements 30/06/2024 construction n rate for
the period fixed assets progress (%) capitalized interest for source
the period denominated investment in the current
interest the period
in foreign budget (%) period (%)
currencies
Reconstruction project of HIPG Own funds
2,817,485,265.02 831,225,294.06 - - - 4,670,925.88 835,896,219.94 57.68 57.68 942,888.05 - -
container, oil terminal and tank area and loans
General cargo terminal project at
Own funds
Donghai Island Port Area of Zhanjiang 905,348,400.00 448,945,219.84 - - - - 448,945,219.84 49.59 49.59 44,364,372.49 - - and loans
Port
Phase I expansion project for the
Own funds
container terminal at Baoman Port Area, 2,342,775,800.00 228,565,139.35 129,488,685.06 - - - 358,053,824.41 15.28 15.28 2,512,870.60 1,501,500.00 3.30 and loans
Zhanjiang Port
Phase II project (Phase I) of the wharf in
Own funds
the local operation area of Foshan Port's 746,878,600.00 173,229,108.75 131,542,260.45 - - - 304,771,369.20 40.81 40.81 16,371,314.38 4,364,573.40 3.44 and loans
Liaoge Mountain Port Area
Subsequent construction work in progress
at 142,450,000.00 64,518,356.73 24,063,035.21 - - 423,380.10 89,004,772.04 62.48 62.48 - - - Own funds
HIPG terminal
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82,400,000.00 62,250,560.60 418,555.20 - - - 62,669,115.80 76.05 76.05 - - - Own funds
Facilities and Liquid Bulk Berth
Dachanwan phase II project 6,202,000,000.00 46,192,561.48 23,180,993.38 - - - 69,373,554.86 1.10 1.10 - - - Own funds
Phase II project (Phase II) of the wharf
in the local operation area of Foshan 512,745,400.00 2,335,611.25 51,875,693.14 - - - 54,211,304.39 10.57 10.57 - - - Own funds
Port's Liaoge Mountain Port Area
Installation project of bucket-wheel Own funds
74,800,000.00 52,388,886.18 - - - - 52,388,886.18 70.04 70.04 2,671,994.44 - - and loans
stacker reclaimer, Zhanjiang Port
TCP tire-type container crane project 48,734,405.90 29,577,680.30 6,214,010.21 - 22,334.68 -3,274,858.84 32,494,496.99 66.72 66.72 - - - Own funds
Total 13,875,617,870.92 1,939,228,418.54 366,783,232.65 - 22,334.68 1,819,447.14 2,307,808,763.65 66,863,439.96 5,866,073.40
- 94 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(4) Materials for construction of fixed assets
30/06/2024 31/12/2023
Gross Gross
Item Provision for Carrying Provision for Carrying
carrying carrying
impairment amount impairment amount
amount amount
Materials for construction
14,258,300.01 - 14,258,300.01 2,803,095.22 - 2,803,095.22
of fixed assets
18. Right-of-use assets
（1） Details of right-of-use assets
Machinery and
equipment,
Motor vehicles,
Port and terminal Buildings and furniture,
Item Land use rights cargo ships and Total
facilities structures fixture and
others
other
equipment
I. Cost —— —— —— —— —— ——
1. At 1 January 2024 7,562,353,952.80 209,373,502.30 90,415,354.96 3,196,799,850.46 12,324,371.27 11,071,267,031.79
2. Increase for the period - 9,012,748.53 - 591,077,283.40 - 600,090,031.93
(1) Purchase - 8,968,347.27 - 37,608,409.78 - 46,576,757.05
(2) Effect of changes in the scope
- - - 553,468,873.62 - 553,468,873.62
of consolidation
(3) Others - 44,401.26 - - - 44,401.26
3. Decrease for the period 615,737,637.49 20,886,370.09 - 1,148,114.05 - 637,772,121.63
(1) Termination of lease 35,218,662.38 20,804,562.13 - - - 56,023,224.51
(2) Transfer to fixed assets 580,517,055.56 - - - - 580,517,055.56
(3) Others 1,919.55 81,807.96 - 1,148,114.05 - 1,231,841.56
4. Effect of translation of financial
statements denominated in 35,347,365.73 773,188.16 -614,082.04 19,234,176.27 - 54,740,648.12
foreign currencies
5. At 30 June 2024 6,981,963,681.04 198,273,068.90 89,801,272.92 3,805,963,196.08 12,324,371.27 11,088,325,590.21
II. Accumulated depreciation
1. At 1 January 2024 1,133,512,711.03 69,917,866.45 41,288,905.85 378,727,399.69 6,151,837.55 1,629,598,720.57
2. Increase for the period 115,620,437.56 13,151,447.02 3,890,427.49 41,709,251.90 1,877,529.60 176,249,093.57
(1) Provision 115,620,437.56 13,151,447.02 3,890,427.49 36,174,563.38 1,877,529.60 170,714,405.05
(2) Effect of changes in the scope
- - - 5,534,688.52 - 5,534,688.52
of consolidation
3. Decrease for the period 91,958,852.99 10,430,820.71 - - - 102,389,673.70
(1) Termination of lease 1,557,891.78 10,417,186.01 - - - 11,975,077.79
(2) Transfer to fixed assets 90,400,961.21 - - - - 90,400,961.21
(3) Others - 13,634.70 - - - 13,634.70
4. Effect of translation of financial
statements denominated in 4,395,086.99 193,574.91 -616,744.30 2,110,977.59 - 6,082,895.19
foreign currencies
5. At 30 June 2024 1,161,569,382.59 72,832,067.67 44,562,589.04 422,547,629.18 8,029,367.15 1,709,541,035.63
III. Impairment provision
1. At 1 January 2024 - - - - - -
2. Increase for the period - - - - - -
3. Decrease for the period - - - - - -
4. At 30 June 2024 - - - - - -
IV. Carrying amount
1. At 30 June 2024 5,820,394,298.45 125,441,001.23 45,238,683.88 3,383,415,566.90 4,295,004.12 9,378,784,554.58
2. At 1 January 2024 6,428,841,241.77 139,455,635.85 49,126,449.11 2,818,072,450.77 6,172,533.72 9,441,668,311.22
- 95 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets
(1) Details of intangible assets
Terminal operating
Item Land use rights Others Total
rights
I. Cost —— —— —— ——
1. At 1 January 2024 13,931,545,206.82 9,719,144,201.53 1,668,648,110.38 25,319,337,518.73
2. Increase for the period 208,031,713.01 124,381,824.32 14,914,601.71 347,328,139.04
(1) Purchase 204,573,647.65 48,182,452.97 14,808,563.97 267,564,664.59
(2) Effect of changes in the scope of
3,458,065.36 76,199,371.35 - 79,657,436.71
consolidation
(3) Transfer from R&D expenditure - - - -
(4) Other increase - - 106,037.74 106,037.74
3. Decrease for the period - - 7,058,745.13 7,058,745.13
(1) Disposal - - 7,058,745.13 7,058,745.13
(2) Effect of changes in the scope of
- - - -
consolidation
(3) Transfer to investment properties - - - -
(4) Other decrease - - - -
4. Effect of translation of financial
statements denominated in foreign 1,542,709.72 -489,923,523.83 -62,179,512.48 -550,560,326.59
currencies
5. At 30 June 2024 14,141,119,629.55 9,353,602,502.02 1,614,324,454.48 25,109,046,586.05
II. Accumulated amortization
1. At 1 January 2024 4,298,634,686.00 2,294,738,077.51 595,892,300.43 7,189,265,063.94
2. Increase for the period 163,545,442.21 167,369,877.13 40,742,160.58 371,657,479.92
(1) Provision 160,357,341.98 134,985,150.57 40,742,160.58 336,084,653.13
(2) Effect of changes in the scope of
3,188,100.23 32,384,726.56 - 35,572,826.79
consolidation
(3) Other increase - - - -
3. Decrease for the period - - 6,791,490.87 6,791,490.87
(1) Disposal - - 6,791,490.87 6,791,490.87
(2) Transfer to investment properties - - - -
(3) Effect of changes in the scope of - - - -
consolidation
(4) Other decrease - - - -
4. Effect of translation of financial
statements denominated in foreign 728,290.84 -122,259,583.07 -22,996,781.23 -144,528,073.46
currencies
5. At 30 June 2024 4,462,908,419.05 2,339,848,371.57 606,846,188.91 7,409,602,979.53
III. Impairment provision
1. At 1 January 2024 44,199,381.24 - 12,810,888.83 57,010,270.07
2. Increase for the period - - - -
3. Decrease for the period - - - -
4. At 30 June 2024 44,199,381.24 - 12,810,888.83 57,010,270.07
IV. Carrying amount
1. At 30 June 2024 9,634,011,829.26 7,013,754,130.45 994,667,376.74 17,642,433,336.45
2. At 1 January 2024 9,588,711,139.58 7,424,406,124.02 1,059,944,921.12 18,073,062,184.72
(2) Land use rights without ownership certificates as at 30 June 2024:
Carrying amount Carrying amount
Item
at 30/06/2024 at 31/12/2023
Land use rights (Note) 1,790,457,890.62 2,374,139,495.63
- 96 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets - continued
(2) Land use rights without ownership certificates as at 30 June 2024: - continued
Note: At 30 June 2024, 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 690,161,97 m2, and Dachanwan Port area Phase II
land use rights obtained by Ansujie Terminals Warehousing Service (Shenzhen) Co., Ltd.
("ASJ"), the costs of which are RMB 1,179,259,029.47 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, Nanshan Group has
not yet obtained the land use rights in respect of the lands within Chiwan watershed,
including aforementioned capital contribution 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 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. ASJ is negotiating with relevant government departments for handling
the ownership certificates of Dachanwan Port area Phase II land use rights obtained by it.
20. Goodwill
(1) Details of goodwill
Effect of translation
of financial
Investee Sources 01/01/2024 Increase (Note) Decrease statements 30/06/2024
denominated in
foreign currencies
TCP Acquisition of equity 2,986,472,072.14 - - -293,960,864.05 2,692,511,208.09
Mega Shekou Container
Acquisition of equity 1,815,509,322.42 - - - 1,815,509,322.42
Terminals Limited ("Mega SCT")
CM Port Acquisition of equity 993,992,000.00 - - - 993,992,000.00
Shantou Port Acquisition of equity 552,317,736.65 - - - 552,317,736.65
Zhanjiang Port Acquisition of equity 418,345,307.68 - - - 418,345,307.68
Shenzhen Mawan Project Acquisition of equity 408,773,001.00 - - - 408,773,001.00
Others Acquisition of equity 288,255,850.88 225,758,626.49 - 570,709.00 514,585,186.37
Sub-total —— 7,463,665,290.77 225,758,626.49 - -293,390,155.05 7,396,033,762.21
Provision for impairment of goodwill —— 970,663,044.33 - - - 970,663,044.33
Total —— 6,493,002,246.44 225,758,626.49 - -293,390,155.05 6,425,370,717.88
Note: Refer to Note (X) 1(2).
- 97 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(2) Provision for impairment of goodwill
Effect of
translation of
financial
Investee 31/12/2023 Provision Decrease 30/06/2024
statements
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 asset groups or portfolio of asset groups to which the goodwill belongs
Composition of asset groups or portfolio of asset Is it consistent with that of the
Name
groups to which it is allocated and its basis prior year?
TCP Yes
Mega SCT The Group identifies asset groups or portfolio of asset Yes
groups based on their ability to generate cash inflows
CM Port Yes
independently, the manner in which they manage their
Shantou Port Yes
production and operating activities (primarily by
Zhanjiang Port Yes
geographic region), and the unified decision-making on
Shenzhen Mawan Project use or disposal of assets. Yes
Others Yes
(4) Specific method for determination of recoverable amount
When testing the goodwill for impairment, the Group compares the carrying amount of related asset
groups and portfolio of asset groups (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 asset groups and portfolio of asset
groups 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 25 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 asset groups and portfolio of asset groups 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.
- 98 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Long-term prepaid expenses
Presentation of long-term prepaid expenses:
Effect of
changes in
Reason for
the scope Increase for Amortization Other
Item 01/01/2024 30/06/2024 other
of the period in the period decreases
decreases
consolidati
on
Tonggu channel widening project
440,997,664.99 - - 8,951,741.92 - 432,045,923.07
(Note 1)
West public channel widening
237,979,944.19 - - 3,301,813.08 - 234,678,131.11
project at West port area (Note 2)
Settlement
Dredging project 79,289,435.04 - - 11,238,115.99 43,173.92 68,008,145.13
variance
Relocation project of Nanhai Rescue
36,446,743.10 - - 553,684.20 - 35,893,058.90
Bureau
Expenditures for the improvement of
leased fixed assets
22,094,914.45 - - 1,357,044.22 - 20,737,870.23
Exchange
rate
Others 176,984,803.52 - 4,824,041.88 25,434,275.13 88,597.40 156,285,972.87 movements,
settlement
differences
Total 993,793,505.29 - 4,824,041.88 50,836,674.54 131,771.32 947,649,101.31
Note 1: This represents the Group's actual expenses on Shenzhen Western Port Area Tonggu
Channel 210-270M Widening Project. According to relevant resolutions of Shenzhen
Municipal Government, the enterprise and government shall bear 60% and 40% of the
expenses incurred for the 210-240M widening project, and 50% and 50% of the expenses
incurred for the 240-270M widening project respectively. 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 lives of the two
widening projects of 35 and 40 years using straight-line method since the completion of
each project in 2008 and 2019, respectively.
Note 2: This represents the Group's actual expenses on Shenzhen West Port Area Public Channel
Widening Project, of which the widening of 240-270M in the first section was completed
on 1 June 2019 and the widening of 240-270M in the second and third sections was
completed on 5 November 2020. According to relevant resolutions of Shenzhen Municipal
Government, the enterprise and government shall bear 50% and 50% of the expenses
incurred for the project respectively. 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.
- 99 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax
(1) Deferred tax assets before offsetting
30/06/2024 31/12/2023
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Terminal operating right 718,563,277.30 215,568,983.22 714,547,999.18 214,364,399.78
Lease liabilities 742,000,288.39 183,187,444.17 812,240,581.51 218,145,932.73
Unrealized profit 746,294,173.57 182,348,777.51 749,254,178.80 183,009,204.87
Depreciation of fixed assets 161,918,682.06 35,190,642.04 162,352,087.79 40,588,021.95
Provision for credit loss 138,822,353.16 29,671,055.75 151,277,238.51 32,071,347.97
Accrued and unpaid wages 133,078,375.76 28,848,066.23 126,623,677.19 27,883,418.55
Provisions 75,889,086.50 25,802,289.41 85,590,059.41 29,100,620.20
Deferred income 37,345,769.51 8,822,388.39 39,203,663.56 9,101,072.49
Deductible losses 44,370,322.67 7,940,629.92 43,785,085.09 10,946,271.43
Amortization of computer software 7,350,739.92 1,837,684.98 7,345,031.20 1,836,257.80
Provision for impairment of assets 6,210,238.19 1,606,620.85 6,698,523.93 1,555,485.91
Organization costs 1,028,867.64 257,216.91 1,028,867.64 257,216.91
Others 61,850,941.79 21,894,438.31 70,987,022.41 18,570,226.51
Total 2,874,723,116.46 742,976,237.69 2,970,934,016.22 787,429,477.10
(2) Deferred tax liabilities before offsetting
30/06/2024 31/12/2023
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Withholding dividend income tax 43,262,736,478.95 2,972,913,038.03 41,551,214,196.81 2,840,377,397.22
Fair value adjustment of assets acquired
from business combination
4,653,178,517.67 1,226,730,508.12 4,880,293,882.18 1,292,552,086.64
Depreciation of fixed assets 970,551,019.36 266,505,658.03 975,166,842.96 272,103,476.86
Right-of-use assets 936,513,868.30 246,227,934.86 1,017,854,192.39 282,003,933.26
Changes in fair value of other non-current
financial assets
851,854,693.56 200,763,133.29 408,104,042.76 99,604,068.18
Terminal operating right 309,346,462.02 92,803,938.61 307,617,857.01 92,285,357.10
Changes in fair value of investments in
other equity instruments
134,179,164.24 33,544,791.03 134,179,164.24 33,544,791.03
Valuation of held-for-trading financial
assets and liabilities
3,785,205.48 946,301.37 2,161,643.84 540,410.96
Others 1,128,727,119.28 121,534,846.05 1,045,132,765.59 118,992,583.19
Total 52,250,872,528.86 5,161,970,149.39 50,321,724,587.78 5,032,004,104.44
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Balance of deferred
Offset amount of Offset amount of Balance of deferred
tax assets or
deferred tax assets deferred tax assets tax assets or
liabilities after
Item and liabilities at the and liabilities at the liabilities after
offsetting at the end
end of the current end of the prior offsetting at the end
of the current
period period of the prior period
period
Deferred tax assets -337,873,127.34 405,103,110.35 -372,366,000.07 415,063,477.03
Deferred tax liabilities -337,873,127.34 4,824,097,022.05 -372,366,000.07 4,659,638,104.37
- 100 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax - continued
(4) Deductible temporary differences and deductible losses for which deferred tax assets are
not recognized
Item 30/06/2024 31/12/2023
Deductible temporary differences 981,120,777.13 966,126,806.19
Deductible losses 2,577,024,330.09 2,334,799,700.50
Total 3,558,145,107.22 3,300,926,506.69
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 which deferred tax assets are not recognized will be expired in the
following years:
Year 30/06/2024 31/12/2023
2024 456,210,249.71 483,200,212.68
2025 375,189,307.19 375,189,307.19
2026 110,459,051.60 110,765,532.94
2027 612,819,518.30 612,819,518.30
2028 753,743,333.32 752,825,129.39
2029 268,602,869.97 -
Total 2,577,024,330.09 2,334,799,700.50
23. Other non-current assets
Item 30/06/2024 31/12/2023
Advances for the channel project (Note) 1,025,353,749.81 1,013,508,448.79
Prepayments for fixed assets 77,577,086.90 144,896,516.09
Prepayments for terminal franchise 29,091,292.55 29,807,737.16
Others 9,221,390.46 5,943,287.58
total 1,141,243,519.72 1,194,155,989.62
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 Group presented
the advances of channel project that should be repaid by Zhanjiang SASAC as other non-
current assets.
- 101 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
24. Short-term borrowings
(1) Classification of short-term borrowings
Item 30/06/2024 31/12/2023
Credit borrowings 11,914,293,884.20 15,593,937,427.86
Guaranteed borrowings - 110,096,708.33
Mortgage borrowings (Note ) - 10,011,152.78
Total 11,914,293,884.20 15,714,045,288.97
Note: It represents the short-term borrowings obtained by Zhoushan RoRo, a subsidiary of the
Company, with the land use rights and buildings on the land held by it as the collateral.
(2) As at 30 June 2024, the Group has no short-term borrowings that are overdue.
25. Notes payable
Category 30/06/2024 31/12/2023
Bank acceptance 33,648,733.23 64,280,925.21
Commercial acceptance - 9,180,240.61
Total 33,648,733.23 73,461,165.82
26. Accounts payable
Item 30/06/2024 31/12/2023
Service fee 246,865,177.49 246,400,717.07
Material purchase fee 83,096,418.89 117,170,447.10
Construction fee 59,529,994.37 100,672,753.10
Equipment payments 20,558,267.93 52,762,565.74
Rental fee 11,677,717.76 13,591,518.23
Others 173,409,102.64 161,167,136.01
Total 595,136,679.08 691,765,137.25
(1) Aging of accounts payable
30/06/2024 31/12/2023
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 521,862,020.99 87.69 617,528,837.76 89.27
1-2 years 22,294,799.49 3.75 26,506,267.62 3.83
2-3 years 11,460,717.95 1.92 30,254,034.46 4.37
More than 3 years 39,519,140.65 6.64 17,475,997.41 2.53
Total 595,136,679.08 100.00 691,765,137.25 100.00
- 102 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
26. Accounts payable - continued
(2) Significant accounts payable aged more than 1 year
Reason for outstanding or
Name of entity 30/06/2024 Aging
not being carried forward
Within 1 year, more than To be paid upon
Quanzhou Antong Logistics Co., Ltd. 17,869,057.61 3 years confirmation by both parties.
27. Receipts in advance
Item 30/06/2024 31/12/2023
Rental fee received in advance 6,631,261.71 8,993,727.31
Management fee received in advance 4,391,754.08 2,659,217.99
Others 15,231,816.91 5,734,592.06
Total 26,254,832.70 17,387,537.36
(1) Aging of receipts in advance
30/06/2024 31/12/2023
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year 26,117,776.65 99.48 17,387,537.36 100.00
1-2 years 137,056.05 0.52 - -
2-3 years - - - -
More than 3 years - - - -
Total 26,254,832.70 100.00 17,387,537.36 100.00
(2) As at 30 June 2024, the Group has no significant receipts in advance aged more than one
year.
(3) For the period from 1 January to 30 June 2024, the Group has no receipts in advance with
significant changes in carrying amount.
28 Contract liabilities
(1) Details of contract liabilities
Item 30/06/2024 31/12/2023
Port charges received in advance 95,490,961.00 84,869,413.45
Service fee received in advance 25,176,755.62 26,198,333.07
Warehousing fee received in advance 2,311,276.75 3,204,091.87
Others 13,335,451.91 27,808,262.61
Total 136,314,445.28 142,080,101.00
(2) There are no significant changes in carrying amount of contract liabilities during the period
from 1 January to 30 June 2024.
- 103 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28 Contract liabilities - continued
(3) As at 30 June 2024, the Group has no significant contract liabilities aged more than one year.
(4) Qualitative analysis of contract liabilities
Contract liabilities mainly represent the amount received by the Group for the port services provided
to customers. The payment is collected according to the time agreed in the contract. The Group
recognizes contract revenue based on the progress of the contract. The contract liabilities will be
recognized as revenue after the Group fulfils its performance obligations.
(5) Revenue recognized in the period and included in the carrying amount of contract liabilities
at the beginning of the period
An amount of RMB 93,363,695.76 included in the carrying amount of contract liabilities at the
beginning of 2024 has been recognized as revenue in the current period, including contract
liabilities arising from settled but unfinished construction resulting from the contract of service fees
received in advance amounting to RMB 77,774,256.88, contract liabilities arising from settled but
unfinished construction resulting from the contract of port charges received in advance amounting
to RMB 4,519,088.50, contract liabilities arising from settled but unfinished construction resulting
from contract of warehousing fee received in advance amounting to RMB 3,204,091.87, and
contract liabilities arising from settled but unfinished construction resulting from other contracts
amounting to RMB 7,866,258.51.
29. Employee benefits payable
(1) Presentation of employee benefits payable
Effect of
changes in the Increase for the Decrease for the
Item 01/01/2024 30/06/2024
scope of period period
consolidation
1. Short-term benefits 910,273,177.19 1,542,765.71 1,555,084,315.06 1,644,886,957.94 822,013,300.02
2. Post-employment benefits
8,354,000.03 - 173,997,812.16 172,298,042.31 10,053,769.88
- defined contribution plan
3. Termination benefits - - 3,248,281.29 3,248,281.29 -
4. Other benefits due within 1 year - - 1,749,069.41 1,749,069.41 -
5. Others -662,570.57 - 1,169,494.93 1,173,969.56 -667,045.20
Total 917,964,606.65 1,542,765.71 1,735,248,972.85 1,823,356,320.51 831,400,024.70
- 104 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
29. Employee benefits payable - continued
(2) Presentation of short-term benefits
Effect of
changes in the Increase for the Decrease for the
Item 01/01/2024 30/06/2024
scope of period period
consolidation
1. Wages and salaries, bonuses,
883,913,277.13 1,542,765.71 1,274,530,840.24 1,369,135,197.67 790,851,685.41
allowances and subsidies
2. Staff welfare - - 66,379,093.44 62,622,731.05 3,756,362.39
3. Social insurance contributions 13,812,824.03 - 93,114,930.64 91,327,864.71 15,599,889.96
Including: Medical insurance 11,207,480.67 - 75,337,350.23 73,622,081.50 12,922,749.40
Work injury insurance - - 10,273,444.81 10,273,444.81 -
Others 2,605,343.36 - 7,504,135.60 7,432,338.40 2,677,140.56
4. Housing funds -96,673.85 - 92,076,670.74 91,897,485.17 82,511.72
5. Labour union and employee
12,735,219.61 - 23,136,309.25 24,672,097.39 11,199,431.47
education funds
6. Other short-term benefits -91,469.73 - 5,846,470.75 5,231,581.95 523,419.07
Total 910,273,177.19 1,542,765.71 1,555,084,315.06 1,644,886,957.94 822,013,300.02
(3) Presentation of defined benefit plans
Effect of
changes in the Increase for the Decrease for the
Item 01/01/2024 30/06/2024
scope of period period
consolidation
I. Basic pension 8,238,945.13 - 126,653,018.93 125,335,214.97 9,556,749.09
II. Unemployment insurance - - 5,542,073.09 5,542,073.09 -
III. Enterprise annuity 115,054.90 - 41,802,720.14 41,420,754.25 497,020.79
Total 8,354,000.03 - 173,997,812.16 172,298,042.31 10,053,769.88
The Company and its domestic subsidiaries participate in the pension insurance and unemployment
insurance plan established by government institutions as required. According to such plans, the
Group contributes in proportion to the local government. The Group has established an enterprise
annuity system, and accrues and pays the enterprise annuity according to the enterprise annuity
system of the Company and its domestic subsidiaries. In addition to above contributions, the Group
has no further payment obligations. The corresponding expenses are included in profit or loss for
the period or the cost of related assets when incurred.
30. Taxes payable
Effect of Effect of translation of
changes in the Provision for Payment for the financial statements
Item 01/01/2024 30/06/2024
scope of the period period denominated in foreign
consolidation currencies
Enterprise
819,694,805.83 3,057,750.61 599,683,650.10 851,216,905.50 -8,984,976.12 562,234,324.92
income tax
VAT 20,221,806.46 3,998.72 102,846,779.58 95,939,887.87 7,357.08 27,140,053.97
Other taxes 83,136,960.21 - 277,104,372.44 261,924,782.65 -2,544,243.05 95,772,306.95
Total 923,053,572.50 3,061,749.33 979,634,802.12 1,209,081,576.02 -11,521,862.09 685,146,685.84
- 105 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables
(1) Presentation of other payables
Item 30/06/2024 31/12/2023
Dividends payable 3,049,267,902.67 111,897,214.27
Other payables 1,588,043,118.08 1,542,724,955.75
Total 4,637,311,020.75 1,654,622,170.02
(2) Dividends payable
Item 30/06/2024 31/12/2023
Ordinary share dividends 3,049,267,902.67 111,897,214.27
Including: Other External parties 676,583,749.93 -
China Merchants Port Investment Development Company
666,216,215.84 -
Limited
GLOBAL TERMINAL LIMITED S.A.R.L. 402,690,750.00 -
CHINA MERCHANTS UNION (BVI) LIMITED 401,621,550.20 -
Zhejiang Provincial Seaport Investment&Operation Group
334,491,531.46 -
Co.,ltd.
China Merchants Gangtong Development (Shenzhen) Co.,
215,109,240.00 -
Ltd.
Zhanjiang Infrastructure Construction Investment
95,442,231.24 -
Group Co., Ltd.
China Merchants Zhangzhou Development Zone Co., Ltd. 72,734,806.46 77,734,806.46
SRI LANKA PORTS AUTHORITY 53,418,750.00 -
Shenzhen Infrastructure Investment Fund Partnership
37,613,105.56 -
(Limited Partnership)
Broadford Global Limited 32,082,240.64 -
Dalian Port Container Development Co., Ltd.
16,160,696.61 16,160,696.61
("Dalian Port Container")
China Merchants Investment Development (Hong Kong)
10,336,739.21 -
Limited
Dalian Port Jifa Logistics Co., Ltd. (“Jifa Logistics”) 9,575,104.42 9,575,104.42
China Baowu Steel Group Corporation Limited 8,693,074.43 -
Yingkou Port Group Co., Ltd. ("Yingkou Port Group") 5,372,456.78 5,372,456.78
Qingdao Qingbao Investment Holding Co.,Ltd. 4,726,364.88 -
Sanya Port Group Co., Ltd. 3,229,100.00 -
Shenzhen Yan Tian Port Holdings Co.,Ltd. 1,434,510.53 -
Orienture Holdings Company Limited 1,313,769.60 -
GUANGDONG EVERGREEN GROUP COMPANY
168,765.95 -
LIMITED
China Guangzhou Ocean Shipping Agency Co., Ltd. 168,765.95 -
Shenzhen Yantiangang Tongyun Industrial Co.,Ltd. 84,382.98 -
Yiu Lian Dockyards Limited - 2,334,150.00
Qingdao Port (Group) Co., Ltd. - 720,000.00
Note: As at 30 June 2024, the Group has no significant dividends payable aged more than one
year.
- 106 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables - continued
(3) Other payables - continued
(a) Disclosure of other payables by nature
Item 30/06/2024 31/12/2023
Amount payable for construction and quality warranty 568,009,857.08 575,941,472.21
Guarantees and deposits 224,754,323.78 246,316,308.32
Customer discount 137,460,454.35 129,780,042.30
Accrued expenses 98,314,993.21 139,920,340.25
Port construction and security fee 25,049,005.33 27,939,655.23
Others 534,454,484.33 422,827,137.44
Total 1,588,043,118.08 1,542,724,955.75
(b) Significant other payables aged more than one year or past due
Company name Amount payable Aging Reason for being outstanding
Transport Bureau of Shenzhen Municipality 1-2 years, 2-3 years and
(Ports Administration of Shenzhen Municipality)
79,679,948.79 more than 3 years
To be paid upon confirmation by both parties
Lac Assal Investment Holding Company Limited 64,672,313.88 1-2 years To be paid upon confirmation by both parties
CCCC Water Transport Planning and Design Institute 1-2 years, 2-3 years and
Co., Ltd.
58,666,012.94 more than 3 years
To be paid upon confirmation by both parties
1-2 years and more than 3 The contracted settlement condition has not
Shanghai Zhenhua Heavy Industries Co., Ltd. 37,457,972.87 years been reached
Shantou Transportation Bureau 31,358,355.47 More than 3 years To be paid upon confirmation by both parties
China Communications Guangzhou Navigation Bureau 1-2 years, more than 3 The contracted settlement condition has not
Co., Ltd.
11,094,812.73 years been reached
China Merchants Real Estate(Shenzhen)Co.,Ltd. 10,079,369.00 More than 3 years To be paid upon confirmation by both parties
Guangdong Groton Group Co., Ltd. (formerly known as The contracted settlement condition has not
Guangdong Hengtai Guotong Industrial Co., Ltd.)
10,000,000.00 More than 3 years
been reached
Shantou Finance Bureau 10,000,000.00 More than 3 years To be paid upon confirmation by both parties
Total 313,008,785.68 —— ——
32. Non-current liabilities due within one year
Item 30/06/2024 31/12/2023
Long-term borrowings due within one year (Note VIII, 34) 1,930,455,304.74 1,033,008,184.01
Including: Credit borrowings 1,785,185,074.71 532,282,391.00
Guaranteed borrowings - 410,725,775.58
Mortgage borrowings 68,015,887.77 30,352,589.61
Guaranteed and mortgage borrowings 77,254,342.26 59,647,427.82
Bonds payable due within one year (Note VIII, 35) 3,307,693,198.24 5,267,490,749.32
Lease liabilities due within one year (Note VIII, 36) 149,675,800.71 248,634,286.86
Long-term payables due within one year (Note VIII, 37) 205,671,967.93 184,534,373.50
Long-term employee benefits payable due within one year
49,222,476.65 49,730,825.21
(Note VIII, 38)
Other non-current liabilities due within one year (Note VIII, 41) 30,236,062.34 34,005,870.35
Total 5,672,954,810.61 6,817,404,289.25
- 107 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Other current liabilities
(1) Details of other current liabilities
Item 30/06/2024 31/12/2023
Short-term bonds payable 2,005,876,712.33 2,007,190,136.98
Accrued professional agency fee 88,910,539.97 114,638,017.33
Others 38,174,546.70 22,014,380.22
Total 2,132,961,799.00 2,143,842,534.53
- 108 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Other current liabilities - continued
(2) Changes in short-term bonds payable
Interest
Amount issued in Amortization of Repayment in Is it in
Coupon Term of accrued
Name of bond Face value Date of issue Amount of issue 01/01/2024 the current premiums or the current 30/06/2024 breach of
rate the bond based on par
period discounts period contract?
value
1.95% RMB 2 billion Super &
2,000,000,000.00 1.95% 06/05/2024 90 days 2,000,000,000.00 - 2,000,000,000.00 5,876,712.33 - - 2,005,876,712.33 No
Short-term Commercial Paper
2.43% RMB 2 billion Super &
2,000,000,000.00 2.43% 07/11/2023 90 days 2,000,000,000.00 2,007,190,136.98 - 4,760,682.69 - 2,011,950,819.67 - No
Short-term Commercial Paper
Total 4,000,000,000.00 4,000,000,000.00 2,007,190,136.98 2,000,000,000.00 10,637,395.02 - 2,011,950,819.67 2,005,876,712.33
- 109 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Long-term borrowings
Range of period-end
Category 30/06/2024 31/12/2023
interest rate
Credit borrowings 19,236,552,383.83 16,857,281,855.60 1.20%-3.70%
Guaranteed borrowings - 845,725,775.58 /
Mortgage borrowings (Note 1) 456,989,441.80 314,794,387.22 3.15%-8.00%
Guaranteed and mortgage borrowings (Note 2) 1,222,192,431.80 1,242,750,120.32 2.70%
Total 20,915,734,257.43 19,260,552,138.72
Less: Long-term borrowings due within one year 1,930,455,304.74 1,033,008,184.01
Including: Credit borrowings 1,785,185,074.71 532,282,391.00
Guaranteed borrowings - 410,725,775.58
Mortgage borrowings 68,015,887.77 30,352,589.61
Guaranteed and mortgage borrowings 77,254,342.26 59,647,427.82
Long-term borrowings due after one year 18,985,278,952.69 18,227,543,954.71
Note 1: On 30 June 2024, the Group obtained the long-term borrowings of RMB 383,828,912.41
(31 December 2023: RMB 314,794,387.22) with the land with property right, fixed assets
and construction in progress of Yide Port Co., Ltd. ("Yide Port"), as well as the land with
property right of Guangdong Shunkong Port Development and Construction Co., Ltd.
("Shunkong Port"), as collaterals; PT Nusantara Pelabuhan Handal Tbk ("NPH") obtained
the long-term borrowings of RMB 73,160,529.39 (31 December 2023: RMB Nil ) with
the fixed assets as collaterals.
Note 2: On 30 June 2024, Shenzhen Haixing Harbor Development Co., Ltd. ("Shenzhen Haixing")
obtained the long-term borrowings of RMB 1,222,192,431.80 (31 December 2023: RMB
1,242,750,120.32) with the land with property right as collaterals, and the borrowings are
guaranteed by CM Port and Sinotrans South China Co., Ltd.
Details of mortgage borrowings are as follows:
Company name 30/06/2024 31/12/2023 Collaterals
Bank of China Qianhai Shekou Branch 1,222,192,431.80 1,242,750,120.32 Land use rights of Shenzhen Haixing
Land use rights and fixed assets of
China Construction Bank Shunde Branch 191,169,777.82 206,239,867.27
Yide Port
Bank of Communications Co., Ltd. Guangdong Branch 192,659,134.59 108,554,519.95 Land use rights (Phase II) of Shunde
PT Bank Mandiri (Persero) Tbk 73,160,529.39 - NPH fixed assets
Total 1,679,181,873.60 1,557,544,507.54
Note: See Note (VIII) 64 for the above collaterals.
- 110 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable
(1) Bonds payable
Item 30/06/2024 31/12/2023
5.000% USD 600 million corporate bond 4,331,518,345.76 4,304,565,371.23
4.750% USD 500 million corporate bond 3,626,774,210.55 3,605,285,143.36
4.000% USD 500 million corporate bond 3,564,714,387.64 3,544,024,689.32
2.690% RMB 3 billion corporate bond 3,067,655,342.44 3,027,415,890.40
2.450% RMB 3 billion corporate bond 3,060,209,589.03 3,023,560,273.97
3.520% RMB 2 billion corporate bond - 2,050,147,945.19
2.800% RMB 1.5 billion corporate bond 1,510,241,095.89 -
2.680% RMB 0.5 billion corporate bond 503,267,397.26 -
Total 19,664,380,368.57 19,554,999,313.47
Less: Bonds payable due within one year 3,307,693,198.24 5,267,490,749.32
Bonds payable due after one year 16,356,687,170.33 14,287,508,564.15
- 111 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable - continued
(2) Details of bonds payable
Effect of
translation of
Amortizatio
Interest financial Is it in
Term of Amount issued in n of Repayment in
Name of bonds Face value Coupon rate Date of issue Amount of issue 31/12/2023 accrued based statements 30/06/2024 breach of
the bond the current period premiums or current period
on par value denominated in contract?
discounts
foreign
currencies
5.000% USD 600 million
USD 600,000,000.00 5.000% 06/08/2018 10 years USD 600,000,000.00 4,304,565,371.23 - 106,344,687.98 2,984,601.12 106,562,536.30 24,186,221.73 4,331,518,345.76 No
corporate bond
4.000% USD 500 million
USD 500,000,000.00 4.000% 01/06/2022 5 years USD 500,000,000.00 3,544,024,689.32 - 70,465,140.06 1,355,130.29 71,065,587.83 19,935,015.80 3,564,714,387.64 No
corporate bond
4.750% USD 500 million
USD 500,000,000.00 4.750% 03/08/2015 10 years USD 500,000,000.00 3,605,285,143.36 - 84,200,157.81 1,391,424.58 84,366,431.79 20,263,916.59 3,626,774,210.55 No
corporate bond
3.520% RMB 2 billion corporate
2,000,000,000.00 3.520% 14/04/2021 3 years 2,000,000,000.00 2,050,147,945.19 - 20,252,054.81 - 2,070,400,000.00 - - No
bond
2.690% RMB 3 billion corporate
3,000,000,000.00 2.690% 29/08/2022 3 years 3,000,000,000.00 3,027,415,890.40 - 40,239,452.04 - - - 3,067,655,342.44 No
bond
2.450% RMB 3 billion corporate
3,000,000,000.00 2.450% 05/09/2022 2 years 3,000,000,000.00 3,023,560,273.97 - 36,649,315.06 - - - 3,060,209,589.03 No
bond
2.800% RMB 1.5 billion
1,500,000,000.00 2.800% 01/04/2024 2 years 1,500,000,000.00 - 1,500,000,000.00 10,241,095.89 - - - 1,510,241,095.89 No
corporate bond
2.680% RMB 0.5 billion
500,000,000.00 2.680% 01/04/2024 3 years 500,000,000.00 - 500,000,000.00 3,267,397.26 - - - 503,267,397.26 No
corporate bond
Total —— —— —— —— —— 19,554,999,313.47 2,000,000,000.00 371,659,300.91 5,731,155.99 2,332,394,555.92 64,385,154.12 19,664,380,368.57
Less: Bonds payable due within
—— —— —— —— —— 5,267,490,749.32 40,202,448.92 - - 2,000,000,000.00 - 3,307,693,198.24
one year
Bonds payable due after one year —— —— —— —— —— 14,287,508,564.15 1,959,797,551.08 371,659,300.91 5,731,155.99 332,394,555.92 64,385,154.12 16,356,687,170.33
- 112 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Lease liabilities
(1) Lease liabilities
Category 30/06/2024 31/12/2023
Lease payment 3,863,055,235.56 2,782,133,802.80
Unrecognized financing cost -2,169,389,815.07 -1,532,327,309.02
Total 1,693,665,420.49 1,249,806,493.78
Less: Lease liabilities due within one year 149,675,800.71 248,634,286.86
Lease liabilities due after one year 1,543,989,619.78 1,001,172,206.92
(2) Maturity of lease liabilities
Item 30/06/2024
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 241,855,275.67
2nd year subsequent to the balance sheet date 156,352,310.72
3rd year subsequent to the balance sheet date 137,826,180.85
Subsequent years 3,327,021,468.32
Total 3,863,055,235.56
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
37. Long-term payables
(1) Presentation of long-term payables
Item 30/06/2024 31/12/2023
Long-term payables 3,749,789,258.48 4,001,789,922.65
Special payables 5,854,885.33 5,606,653.02
Total 3,755,644,143.81 4,007,396,575.67
Less: Long-term payables due within one year 205,671,967.93 184,534,373.50
Long-term payables due after one year 3,549,972,175.88 3,822,862,202.17
(2) Long-term payables
Item 30/06/2024 31/12/2023
Terminal operating rights (Note) 3,669,905,925.54 3,958,393,516.47
Others 79,883,332.94 43,396,406.18
Total 3,749,789,258.48 4,001,789,922.65
Less: Long-term payables due within one year 205,671,967.93 184,534,373.50
Long-term payables due after one year 3,544,117,290.55 3,817,255,549.15
- 113 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term payables - continued
(2) Long-term payables - continued
Note: Mainly from CICT and TCP terminal operating rights purchased. On 12 August 2011, the
Group reached a 35-year building, operation and transfer agreement through the subsidiary CICT
and Sri Lanka Port Authority on the building, operation, management and development of
Colombo Port South Container Terminal (hereinafter referred to as "BOT"). The above-
mentioned amount payable for the acquisition of 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 at 30 June 2024, the amount payable for the acquisition of terminal
operating rights is RMB 877,419,694.52.
TCP, a subsidiary of the Company, entered into a franchise agreement on the Port of
Paranaguáwith the Administration of the Ports of Paranaguáand Antonina ("APPA"). The
agreement provides for an initial term of 25 years for the franchising rights. In April 2016,
TCP and APPA entered into the Supplemental Agreement, which extends the term to 50
years and will be expired in October 2048. As at 30 June 2024, the amount of franchising
rights payable was RMB 2,792,486,231.02.
(3) Special payables
Increase for Decrease for
Item 01/01/2024 30/06/2024 Reason
the period the period
Employee housing fund 5,606,653.02 248,232.31 - 5,854,885.33 Note
Total 5,606,653.02 248,232.31 - 5,854,885.33
Note: This represents the repairing fund for public areas and public facilities and equipment
established after the Group sells 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.
- 114 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Long-term employee benefits payable
(1) Long-term employee benefits payable
Item 30/06/2024 31/12/2023
Post-employment benefits - net liabilities of defined benefit plans 520,390,479.91 509,605,071.25
Termination benefits 56,125,397.07 58,098,932.22
Others (Note) 73,072,332.25 85,036,743.65
Total 649,588,209.23 652,740,747.12
Less: Long-term employee benefits payable due within one year 49,222,476.65 49,730,825.21
Long-term employee benefits payable due after one year 600,365,732.58 603,009,921.91
Note: This represents the employee relocation costs of the Company's subsidiary Shantou Port in
connection with land acquisition and reservation.
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item Current period Prior period
I. Opening balance 509,605,071.25 516,950,669.03
II. Defined benefit cost included in profit or loss for the period 6,202,972.98 10,350,000.04
1. Current service cost 132,972.96 2,730,200.04
2. Past service cost - -
3. Interest adjustment 6,070,000.02 7,619,800.00
III. Defined benefit cost included in other comprehensive income -295,564.04 789,488.92
1. Actuarial gains - -
2. Effect of exchange rate changes -295,564.04 789,488.92
IV. Other changes 4,877,999.72 -6,925,211.56
1. Benefits paid -12,308,871.63 -6,925,211.56
2. Changes in the scope of consolidation 17,186,871.35 -
V. Closing balance 520,390,479.91 521,164,946.43
The Company's subsidiaries provide the 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 the above-mentioned
retirement benefit plan obligations in an actuarial manner based on the expected cumulative welfare
unit method. The Group recognizes the 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.
- 115 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Provisions
Effect of
translation of
Increase for Decrease for financial
Item 01/01/2024 30/06/2024 Reason
the period the period statements
denominated in
foreign currencies
Pending litigation 85,590,059.41 1,100,635.55 2,456,037.42 -8,345,571.04 75,889,086.50 Note
Sales discount - 91,599,303.09 91,599,303.09 - -
Total 85,590,059.41 92,699,938.64 94,055,340.51 -8,345,571.04 75,889,086.50
Note: This represents the estimated compensation amount that the Company's subsidiary TCP may
need to pay due to the pending litigation.
40. Deferred income
Increase for the Decrease for the
Item 01/01/2024 30/06/2024
period period
Government grants 1,024,776,557.73 450,000.00 25,422,775.68 999,803,782.05
Total 1,024,776,557.73 450,000.00 25,422,775.68 999,803,782.05
41. Other non-current liabilities
Item 30/06/2024 31/12/2023
Actuarial cost for the calculation of pension benefit difference
188,780,623.67 198,642,177.67
for the public security bureau staff (Note 1)
Related party borrowings (Note 2) 8,176,062.34 11,945,870.35
Others 3,146,435.18 3,052,086.06
Total 200,103,121.19 213,640,134.08
Less: Other non-current liabilities due within one year 30,236,062.34 34,005,870.35
Including: Actuarial cost for the calculation of pension benefits
22,060,000.00 22,060,000.00
difference for the public security bureau staff
Related party borrowings 8,176,062.34 11,945,870.35
Other non-current liabilities due after one year 169,867,058.85 179,634,263.73
- 116 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Other non-current liabilities - continued
Note 1: It represents the transfer of Zhanjiang Port Public Security Bureau to the People's
Government of Zhanjiang Municipality by Zhanjiang Port, a subsidiary of the Company,
in 2020 in accordance with the Notice on the Issuance of the Program on Deepening the
Management System Reform of Ganghang Public Security Organs (Zhong Yang Bian Ban
Fa No. 327 (2017)) and the Notice on the Issuance of the Implementation Plan for
Deepening the Management System Reform of Ganghang Public Security Organs in
Guangdong Province (Yue Ji Bian Ban Fa No. 221 (2018)). The former in-service police
officers of Zhanjiang Port Public Security Bureau were transferred as civil servants in
accordance with state regulations, the retired police officers were included in the scope of
pension insurance of the government departments and public institutions in Zhanjiang,
and the difference between the pension benefits under the original standard and the
retirement benefits of Zhanjiang municipal police officers (the "pension benefit
difference") was borne by Zhanjiang Port.
Shantou Port, a subsidiary of the Company, transferred Shantou Municipal Public Security
Bureau Ganghang Branch (formerly, the Shantou Port Public Security Bureau) to Shantou
Municipal Government, and Shantou Municipal Public Security Bureau Ganghang Branch
was fully taken over by Shantou Municipal Public Security Bureau. The in-service police
officers were transferred as civil servants in accordance with state regulations, the retired
police officers were included in the scope of pension insurance of the government
departments and public institutions in Shantou, and the pension benefit difference was
borne by Shantou Port.
Note 2: It represents the principal and interest on borrowings of the subsidiary of the Company
Shunkong Port from its minority shareholder Guangdong Shunkong City Investment Real
Estate Co., Ltd. and its related party Guangdong Shunkong Transportation Investment Co.,
Ltd.
- 117 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital
Changes for the period
Capitalization
Item 31/12/2023 New issue 30/06/2024
Bonus issue of surplus Others Sub-total
of share
reserve
For the period from 1 January to 30 June 2024
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned corporate shares 576,709,537.00 - - - - - 576,709,537.00
3. Other domestic shares - - - - - - -
4. Foreign shares - - - - - - -
Total restricted tradable shares 576,709,537.00 - - - - - 576,709,537.00
II. Non-restricted tradable shares
1. Ordinary shares denominated in RMB 1,742,469,694.00 - - - 1,207,820.00 1,207,820.00 1,743,677,514.00
2. Foreign capital shares listed domestically 179,895,430.00 - - - - - 179,895,430.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 1,922,365,124.00 - - - 1,207,820.00 1,207,820.00 1,923,572,944.00
III. Total shares 2,499,074,661.00 - - - 1,207,820.00 1,207,820.00 2,500,282,481.00
- 118 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital - continued
Changes for the period
Capitalization
Item 31/12/2022 New issue 31/12/2023
Bonus issue of surplus Others Sub-total
of share
reserve
For the year ended 31 December 2023
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned corporate shares 576,709,537.00 - - - - - 576,709,537.00
3. Other domestic shares 7,366.00 - - - -7,366.00 -7,366.00 -
4. Foreign shares - - - - - - -
Total restricted tradable shares 576,716,903.00 - - - -7,366.00 -7,366.00 576,709,537.00
II. Non-restricted tradable shares
1. Ordinary shares denominated in RMB 1,742,468,718.00 - - - 976.00 976.00 1,742,469,694.00
2. Foreign capital shares listed domestically 179,889,040.00 - - - 6,390.00 6,390.00 179,895,430.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 1,922,357,758.00 - - - 7,366.00 7,366.00 1,922,365,124.00
III. Total shares 2,499,074,661.00 - - - - - 2,499,074,661.00
- 119 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Capital Reserve
Item 01/01/2024 Increase Decrease 30/06/2024
For the period from 1 January to 30 June 2024
I. Capital premium 36,453,130,588.72 238,421,458.64 - 36,691,552,047.36
Including: Capital contributed by investors 17,068,816,277.34 21,539,187.16 - 17,090,355,464.50
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
4,407,857,529.27 216,882,271.48 - 4,624,739,800.75
interests (Note 1)
Others 1,673,519,576.38 - - 1,673,519,576.38
II. Other capital reserve 623,716,214.34 17,193,342.68 3,483,901.00 637,425,656.02
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting system
Unexercised share-based payment (Note 2) 6,644,590.36 264,766.44 3,483,901.00 3,425,455.80
Other changes in owners' equity of the investee
under equity method other than changes in net
619,852,756.98 16,928,576.24 - 636,781,333.22
profit or loss, profit distribution and other
comprehensive income
Total 37,076,846,803.06 255,614,801.32 3,483,901.00 37,328,977,703.38
2023
I. Capital premium 34,208,812,963.50 2,244,317,625.22 - 36,453,130,588.72
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 2,242,433,715.25 - 4,407,857,529.27
interests
Others 1,671,635,666.41 1,883,909.97 - 1,673,519,576.38
II. Other capital reserve 542,827,871.75 104,628,733.77 23,740,391.18 623,716,214.34
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting system
Unexercised share-based payment 5,591,402.00 1,528,712.73 475,524.37 6,644,590.36
Other changes in owners' equity of the investee
under equity method other than changes in net
540,017,602.75 103,100,021.04 23,264,866.81 619,852,756.98
profit or loss, profit distribution and other
comprehensive income
Total 34,751,640,835.25 2,348,946,358.99 23,740,391.18 37,076,846,803.06
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 216,882,271.48
in capital reserve in the current period refer to Note (XI) 2 for details.
Note 2: Refer to Note (XVI) 2 for details.
- 120 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Other comprehensive income
Changes for the period
Less: Amount Less: Amount
included in other included in other
comprehensive comprehensive Attributable to
Item 01/01/2024 Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the minority Other changes 30/06/2024
period period but period but tax expenses Company, net of tax shareholders, net of
transferred to profit transferred to tax
or loss in the retained earnings in
current period the current period
For the period from 1 January to 30 June 2024
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss
-22,859,768.83 4,880,010.69 - - - 2,419,297.96 2,460,712.73 - -20,440,470.87
Including: Changes arising from remeasurement of defined
benefit plans -2,709,609.54 - - - - - - - -2,709,609.54
Other comprehensive income that can't be
reclassified to profit or loss under equity method -92,749,398.41 4,880,010.69 - - - 2,419,297.96 2,460,712.73 - -90,330,100.45
Changes in fair value of other equity instruments 72,599,239.12 - - - - - - - 72,599,239.12
II. Other comprehensive income that will be reclassified
subsequently to profit or loss
-880,766,825.52 -743,811,304.09 - - - -302,049,006.52 -441,762,297.57 - -1,182,815,832.04
Including: Other comprehensive income that may be
reclassified to profit or loss under equity method
-426,790,507.27 -98,079,110.21 - - - -42,117,286.47 -55,961,823.74 - -468,907,793.74
Translation differences of financial statements
denominated in foreign currencies
-453,976,318.25 -645,732,193.88 - - - -259,931,720.05 -385,800,473.83 - -713,908,038.30
Total other comprehensive income -903,626,594.35 -738,931,293.40 - - - -299,629,708.56 -439,301,584.84 - -1,203,256,302.91
2023
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss 51,014,303.06 60,755,557.83 - - 846,996.46 -73,874,071.89 133,782,633.26 - -22,859,768.83
Including: Changes arising from remeasurement of defined
benefit plans -10,189,712.88 25,003,573.00 - - - 7,480,103.34 17,523,469.66 - -2,709,609.54
Other comprehensive income that can't be
reclassified to profit or loss under equity method -8,907,673.34 32,473,509.74 - - - -83,841,725.07 116,315,234.81 - -92,749,398.41
Changes in fair value of other equity instruments 70,111,689.28 3,278,475.09 - - 846,996.46 2,487,549.84 -56,071.21 - 72,599,239.12
II. Other comprehensive income that will be reclassified
subsequently to profit or loss
-740,567,922.92 149,948,207.40 - - - -140,198,902.60 290,147,110.00 - -880,766,825.52
Including: Other comprehensive income that may be
reclassified to profit or loss under equity method
-60,762,188.43 -767,504,700.07 - - - -366,028,318.84 -401,476,381.23 - -426,790,507.27
Translation differences of financial statements
denominated in foreign currencies -679,805,734.49 917,452,907.47 - - - 225,829,416.24 691,623,491.23 - -453,976,318.25
Total other comprehensive income -689,553,619.86 210,703,765.23 - - 846,996.46 -214,072,974.49 423,929,743.26 - -903,626,594.35
- 121 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
45. Special reserve
Item 01/01/2024 Increase Decrease 30/06/2024
Safety production cost 34,003,994.41 26,486,147.83 10,838,866.10 49,651,276.14
46. Surplus reserve
Item 01/01/2024 Increase Decrease 30/06/2024
Statutory surplus reserve 1,095,980,563.68 - - 1,095,980,563.68
47. Unappropriated profit
Proportion of
Item Amount appropriation or
allocation
For the period from 1 January to 30 June 2024
Unappropriated profit at the beginning of the period before adjustment 19,045,313,519.75
Add: Adjustment to unappropriated profit at beginning of the period -
Including: Changes in accounting policies -
Unappropriated profit at the beginning of the period after adjustment 19,045,313,519.75
Add: Net profit of the period attributable to shareholders of the Company 2,546,828,456.08
Unappropriated profit carried forward from other comprehensive income -
Less: Transfer to statutory surplus reserve in the current period -
Transfer to discretionary surplus reserve in the current period -
Ordinary shares' dividends payable 1,450,163,838.98 Note
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to the National Council for Social Security Fund of the PRC -
Distribution to holders of other equity instruments -
Others -
Unappropriated profit at the end of the period 20,141,978,136.85
Proportion of
Item Amount appropriation or
allocation
For the year ended 31 December 2023
Unappropriated profit at the beginning of the year before adjustment 16,679,688,347.09
Add: Adjustment to unappropriated profit at beginning of the year 22,299,954.05
Including: Changes in accounting policies 22,299,954.05
Unappropriated profit at the beginning of the year after adjustment 16,701,988,301.14
Add: Net profit of the year attributable to shareholders of the Company 3,571,800,762.16
Unappropriated profit carried forward from other comprehensive income -
Less: Transfer to statutory surplus reserve in the current year 94,063,114.53
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1,124,583,597.45
Ordinary shares' dividends converted into share capital -
Pension benefit difference 7,944,921.60
Transfer to the National Council for Social Security Fund of the PRC -
Distribution to holders of other equity instruments -
Others 1,883,909.97
Unappropriated profit at the end of the year 19,045,313,519.75
- 122 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Unappropriated profit - continued
Note : According to the resolution of shareholders' meeting on 31 May 2024, the Company plans
to distribute cash dividends of RMB 5.80 (inclusive of tax) for every 10 shares, totalling
up to RMB 1,449,688,194.32 based on the latest total shares of 2,499,462,404 shares. As
of June 30, 2024, the total shares of the Company has been changed to 2,500,282,481
shares and the cash dividends distributed by the Company have been changed to RMB
1,450,163,838.98 due to the grant and exercise of equity incentive.
48. Operating income and operating costs
(1) Details of operating income and operating costs
Current period Prior period
Item
Income Cost Income Cost
Principal operation 7,883,718,886.49 4,278,633,923.81 7,708,854,212.85 4,408,430,226.61
Other operations 91,474,197.15 112,235,371.15 86,407,358.14 111,513,527.18
Total 7,975,193,083.64 4,390,869,294.96 7,795,261,570.99 4,519,943,753.79
- 123 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(2) Breakdown information of operating income and operating costs
Ports operation Bonded logistics operation Other operations Total
Category of contracts Operating Operating Operating Operating
Operating costs Operating costs Operating costs Operating costs
income income income income
Mainland China, Hong Kong
4,974,576,305.58 2,977,738,592.37 244,280,778.05 123,835,700.00 91,474,197.15 112,235,371.15 5,310,331,280.78 3,213,809,663.52
and Taiwan area
- Pearl River Delta 3,219,936,922.80 1,685,168,257.93 168,586,159.63 88,121,985.90 91,474,197.15 112,235,371.15 3,479,997,279.58 1,885,525,614.98
- Yangtze River Delta 1,029,435.60 5,842,912.70 - - - - 1,029,435.60 5,842,912.70
- Bohai Rim 39,308,697.49 33,142,932.27 75,694,618.42 35,713,714.10 - - 115,003,315.91 68,856,646.37
- Other 1,714,301,249.69 1,253,584,489.47 - - - - 1,714,301,249.69 1,253,584,489.47
Other areas 2,644,011,210.95 1,157,898,462.56 20,850,591.91 19,161,168.88 - - 2,664,861,802.86 1,177,059,631.44
Total 7,618,587,516.53 4,135,637,054.93 265,131,369.96 142,996,868.88 91,474,197.15 112,235,371.15 7,975,193,083.64 4,390,869,294.96
- 124 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(3) Description of performance obligations
The Group provides port service, bonded logistics service and other services. These services are
obligations performed over a period of time. For port services, as the handling time for containers
and bulk cargos is short, the management believes that it is not necessary to recognize revenue
according to the progress towards the completion of contract and it is an appropriate method to
recognize the fulfilment of performance obligation and revenue upon the completion of the service.
For bonded logistics service and other services, the customers evenly obtain and consume the
economic benefits from the Group's performance of contract, meanwhile the charging rules as
agreed in the contract terms usually adopt daily/month/yearly basis. During the process of rendering
services, the Group recognizes revenue using straight-line method. At the same time, the Group is
primarily responsible for the above services and generally does not have any commitment to the
amount of money expected to be returned to the customer.
Part of the Group's handling contracts are established with discount terms, i.e., the customers whose
business volume reaches agreed level, are granted with preferential charge rate or discount. At the
end of the period, as the business volume 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. At the end of the period, the variable considerations
arising from sales discount are set out in Note (VIII) 31 (3) and Note (VIII) 39.
(4) Descriptions on allocation to remaining performance obligations
At the end of the period, the amount of revenue corresponding to the performance obligations which
the Group has entered into a contract for but has not fulfilled or completely fulfilled mainly included
the contract liabilities of RMB 136,314,445.28, of which RMB 46,777,586.79 is expected to be
recognized as revenue in 2024; and RMB 89,536,858.49 is expected to be recognized as revenue in
2025 and subsequent years.
49. Taxes and surcharges
Item Current period Prior period
Property tax 37,432,602.44 37,043,349.16
Land use tax 17,922,726.00 21,497,609.30
City construction and maintenance tax 5,333,385.15 3,574,919.14
Education surcharges and local education surcharges 3,987,112.95 2,755,664.80
Stamp duty 1,772,162.02 1,784,831.65
Others (Note) 97,135,500.20 75,120,958.39
Total 163,583,488.76 141,777,332.44
Note: Others mainly represent the social contribution tax and tax on services borne by TCP, a
subsidiary of the Company, totalled BRL 65,325,112.99 (equivalent to RMB 91,539,427.58)
for the year.
- 125 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
50. Administrative expenses
Item Current period Prior period
Employee benefits 620,704,850.52 588,853,219.14
Depreciation expenses 35,571,367.42 37,022,009.61
Amortization of intangible assets 27,872,655.34 28,171,677.17
Fees paid to agencies 18,415,907.98 17,093,174.16
Others 105,613,974.92 119,776,074.57
Total 808,178,756.18 790,916,154.65
51. Research and development expenses
Item Current period Prior period
Employee benefits 59,561,003.92 92,265,865.27
Direct materials and outsourced R&D 22,767,018.47 20,057,996.34
Depreciation and amortization 1,956,675.62 8,209,955.28
Others 448,263.29 507,493.83
Total 84,732,961.30 121,041,310.72
52. Financial expenses
Item Current period Prior period
Interest expenses 1,024,492,994.41 967,915,432.19
Less: Interest income 240,157,542.78 248,901,354.18
Less: Capitalized interest expenses 20,937,364.57 22,358,449.22
Exchange differences 84,715,364.32 93,018,282.35
Interest expenses -Terminal operating rights (Note) 118,016,249.69 135,914,691.46
Interest expenses on lease liabilities 26,893,252.91 31,418,935.49
Handling fee 2,010,403.68 2,299,754.36
Others 1,179,416.15 1,142,449.45
Total 996,212,773.81 960,449,741.90
Note: Details are set out in Note (VIII) 37.
53. Other income
Classification by nature Current period Prior period
Business development subsidy 71,860,214.43 10,065,510.04
Transfer from allocation of deferred income (Note VIII 40) 25,422,775.68 24,115,933.58
Special fund for operation 6,677,269.13 6,146,204.98
Others 4,435,948.63 22,229,294.67
Total 108,396,207.87 62,556,943.27
- 126 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
54. Investment income
(1) Details of investment income
Item Current period Prior period
Income from long-term equity investments under equity method 3,357,745,272.28 3,095,294,518.20
Including: Income from long-term equity investments of
3,173,207,222.52 2,925,319,084.66
associates under equity method
Income from long-term equity investments of joint
184,538,049.76 169,975,433.54
ventures under equity method
Investment income from held-for-trading financial assets 35,265,732.57 42,382,509.61
Investment income from other non-current financial assets 44,838,893.61 40,991,190.59
Dividend income from investments in other equity instruments - 8,824,500.00
Total 3,437,849,898.46 3,187,492,718.40
(2) Details of income from long-term equity investments under equity method
Investee Current period Prior period Reason for changes
SIPG 2,356,313,485.80 2,053,880,439.55 Changes in net profit of investee
Ningbo Zhoushan 518,924,362.26 486,448,025.41 Changes in net profit of investee
Terminal Link SAS 183,301,622.28 123,523,209.71 Changes in net profit of investee
Qingdao Qianwan United Container
77,521,103.55 65,204,791.15 Changes in net profit of investee
Terminal Co., Ltd.
PORT DE DJIBOUTI S.A 70,639,375.54 46,389,947.52 Changes in net profit of investee
Euro-Asia Oceangate S.à.r.l. 55,117,511.36 52,892,617.53 Changes in net profit of investee
Liaoning Port 51,318,446.09 71,442,863.94 Changes in net profit of investee
MODERN TERMINALS LIMITED 23,942,161.87 24,704,316.27 Changes in net profit of investee
Shenzhen China Merchants Qianhai
8,845,554.89 21,312,200.00 Changes in net profit of investee
Industrial Development Co., Ltd.
Nanshan Group -27,433,343.85 113,853,548.75 Changes in net profit of investee
Others 39,254,992.49 35,642,558.37 Changes in net profit of investee
Total 3,357,745,272.28 3,095,294,518.20
55. Gains from changes in fair value
Source resulting in gains from changes in fair values Current period Prior period
Held-for-trading financial assets 22,475,938.61 29,660,173.93
Other non-current financial assets 443,376,957.50 113,377,129.75
Including: Financial assets at fair value through profit or loss 443,376,957.50 113,377,129.75
Total 465,852,896.11 143,037,303.68
56. Gains from impairment of credit
Item Current period Prior period
I. Losses from impairment of credit of accounts receivable
-461,759.95 -6,091,772.24
(Losses are marked with "-")
II. Gains (Losses) from impairment of credit of other receivables
316,195,849.66 -848,166.66
(Losses are marked with "-")
III. Gains (Losses) from impairment of credit of long-term
-7,587.78 -355,682.40
receivables (Losses are marked with "-")
Total 315,726,501.93 -7,295,621.30
- 127 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
57. Gains from impairment of assets
Item Current period Prior period
Gains from decline in value of inventories - 65,324.84
Total - 65,324.84
58. Gains from disposal of assets
Amount included in
non-recurring profit
Item Current period Prior period or loss for the current
period
Gains from disposal of non-current assets 884,468.18 352,045.75 88
Including: Gains from disposal of
fixed assets
679,465.46 332,086.56 66
Other income 205,002.72 19,959.19 22
59. Non-operating income
Amount included in
non-recurring profit
Item Current period Prior period
or loss for the
current period
Compensation received for violation of
1,173,484.75 11,941,072.67 17
contracts
Land rent deduction 52,700.54 2,687,908.22 52,70
Income from relocation compensation - 4,301,000.00 -
Gains from retirement or damage of
1,566,507.26 1,501,585.40 12
non-current assets
Including: Gains from retirement
1,566,507.26 1,495,213.72 12
or damage of fixed assets
Exempted current accounts 824,983.50 15,000.00 824,98
Insurance claims 800,133.81 12,234.79 800,13
Government grants - 51,161.13 -
Others 13,120,624.87 16,073,522.25 14
Total 17,538,434.73 36,583,484.46 14
- 128 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
60. 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
4,703,003.88 8,552,288.98 48
assets
Including: Losses on retirement
4,703,003.88 8,552,288.98 48
or damage of fixed assets
Compensation and liquidated damages 1,801,256.48 1,008,437.74 14
Expenditure on public welfare
340,995.85 196,195.88 35
donations
Others 26,854,371.88 322,080.73 2838
Total 33,699,628.09 10,079,003.33 3660
61. Borrowing costs
Item Capitalization rate Amount capitalized
Construction in progress
Phase I project for the stuffing and destuffing service area of
3.50% 3,225,990.15
Baoman Port Area, Zhanjiang Port
Phase II project for the operation area terminal at Liaogeshan Port
3.44% 4,364,573.40
Area, Foshan Port
Phase I expansion project for the container terminal at Baoman
3.30% 1,501,500.00
Port Area, Zhanjiang Port
Other non-current assets
Advances for channels 4.35% 11,845,301.02
Sub-total 20,937,364.57
Interest expenses included in profit or loss for the period
(Excludes interest expense on terminal operating rights and lease 1,003,555,629.84
liabilities）
Total 1,024,492,994.41
62. Translation of foreign currencies
Item Current period
Exchange differences included in profit or loss for the period 84,715,364.32
Total 84,715,364.32
63. Income tax expenses
Item Current period Prior period
Current income tax expenses 576,566,050.41 526,429,958.55
Deferred income tax expenses 227,952,828.10 86,789,894.01
Total 804,518,878.51 613,219,852.56
- 129 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Income tax expenses - continued
Reconciliation of income tax expenses to the accounting profit is as follows:
Item Current period
Total profit 5,844,164,587.82
Income tax expenses calculated at 25% 1,461,041,146.96
Effect of non-deductible costs, expenses and losses 84,751,737.74
Accrued income tax 255,653,867.58
Effect of deductible temporary differences and deductible losses
72,707,088.43
for which deferred tax assets are not recognized in the period
Effect of tax-free income (Note) -694,827,444.70
Effect of tax incentives and changes in tax rate -320,668,997.36
Effect of different tax rates of subsidiaries operating in other jurisdictions -55,649,513.19
Effect of utilizing deductible losses for which deferred tax assets
-8,402,438.30
were not recognized in prior period
Effect of adjustments to income tax of prior year 8,172,048.85
Others 1,741,382.50
Income tax expenses 804,518,878.51
Note: This mainly represents the tax effect of income from investments in joint ventures and
associates.
- 130 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Assets with restricted ownership and use right
30/06/2024 31/12/2023
Item Gross carrying Gross carrying
Carrying amount Type of restriction Status of restriction Carrying amount Type of restriction Status of restriction
amount amount
Performance bonds,
Cash and bank balances Performance bonds, frozen funds for card
48,273,024.56 48,273,024.56 Restricted guarantee 46,535,456.14 46,535,456.14 Restricted guarantees
(Note 1) frozen funds, etc. business of Bank of
Communications
Fixed assets (Note 2) 506,723,837.68 467,502,744.69 Mortgage Mortgage borrowings 330,222,332.58 291,001,239.59 Mortgage Mortgage borrowings
Intangible assets
547,351,620.98 547,351,620.98 Mortgage Mortgage borrowings 457,654,685.65 457,654,685.65 Mortgage Mortgage borrowings
(Note 2)
Total 1,102,348,483.22 1,063,127,390.23 834,412,474.37 795,191,381.38
Note 1: Details of restricted cash and bank balances are set out in Note (VIII) 1.
Note 2: Details of mortgage borrowings are set out in Note (VIII) 24 and Note (VIII) 34.
- 131 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Provision for impairment of assets and provision for credit loss
Effect of translation
Effect of Write-off Other Other
Transfer-out due of financial
changes in the Provision for Reversal for the and charge- increases decreases
Item 01/01/2024 to sale in the statements 30/06/2024
scope of the period period off for the for the for the
current period denominated in
consolidation period period period
foreign currencies
Provision for credit loss of accounts
91,022,363.09 785,325.91 1,843,140.23 -1,381,380.28 - - - - -2,467,553.63 89,801,895.32
receivable
Provision for credit loss of other receivables 957,081,730.86 - 162,050.34 -316,357,900.00 - - - - -18,759,262.79 622,126,618.41
Provision for decline in value of inventories 1,234,628.38 - - - - - - - 3,407.55 1,238,035.93
Provision for credit loss of long-term
1,178,166.70 - 22,497.85 -14,910.07 - - - - - 1,185,754.48
receivables
Provision for impairment of long-term equity
362,334,075.76 - - - - - - - 2,446,960.50 364,781,036.26
investments
Provision for impairment of fixed assets 213,504,483.08 - - - - - - - -82,379.91 213,422,103.17
Provision for impairment of intangible assets 57,010,270.07 - - - - - - - - 57,010,270.07
Provision for impairment of goodwill 970,663,044.33 - - - - - - - - 970,663,044.33
Total 2,654,028,762.27 785,325.91 2,027,688.42 -317,754,190.35 - - - - -18,858,828.28 2,320,228,757.97
- 132 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Other comprehensive income, net of tax
Details are set out in Note (VIII) 44.
67. Items in cash flow statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Item Current period Prior period
Receipt of operating compensation 316,356,000.00 -
Interest income 179,018,389.54 158,498,388.26
Guarantees and deposits 21,859,387.49 30,744,990.97
Government grants 21,136,532.52 37,471,669.54
Rentals 2,021,910.78 6,510,750.65
Insurance indemnities 932,383.16 1,998,402.38
Others 217,476,013.97 138,575,220.13
Total 758,800,617.46 373,799,421.93
Other cash payments relating to operating activities
Item Current period Prior period
Operating expenses such as operating costs and administrative 101,884,227.23 125,945,130.98
expenses etc.
Advance payment 72,413,451.97 93,657,548.56
Guarantees and deposits 17,564,575.29 13,258,231.38
Rentals 13,477,881.80 23,988,105.53
Port charges 950,402.70 2,639,938.00
Harbor dues on cargo - 6,085,935.98
Others 177,708,320.65 123,054,086.20
Total 383,998,859.64 388,628,976.63
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item Current period Prior period
Recovered structured deposits 11,200,000,000.00 13,267,000,000.00
Dividends received 1,992,633,200.33 773,104,596.91
Recovered lending - 15,768,702.30
Total 13,192,633,200.33 14,055,873,299.21
- 133 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Items in cash flow statement - continued
(2) Cash relating to investing activities - continued
Other cash receipts relating to investing activities
Item Current period Prior period
Interest on advances for the project - 87,390,340.59
Others - 15,768,702.30
Total - 103,159,042.89
Other cash payments relating to investing activities
Item Current period Prior period
Payment of taxes on land acquisition and reserve by ASJ 259,533,828.27 -
Disposal cost of scrapped assets, etc - 7,340,158.92
Others 545,760.17 6,146.71
Total 260,079,588.44 7,346,305.63
(3) Cash relating to financing activities
Other cash receipts relating to financing activities
Item Current period Prior period
Sale and leaseback proceeds 40,000,000.00 322,200,480.00
Others 308,276.99 160,820.44
Total 40,308,276.99 322,361,300.44
- 134 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Items in cash flow statement - continued
(3) Cash relating to financing activities - continued
Other cash payments relating to financing activities
Item Current period Prior period
Payment for the Company's acquisition of minority interests
147,607,116.30 302,638,065.73
of CM Port
Lease expenses paid 142,264,009.77 168,480,367.22
Others 1,383,669.41 3,737,603.90
Total 291,254,795.48 474,856,036.85
Changes in liabilities arising from financing activities
Increase for the period Decrease for the period
Item 01/01/2024 Non-cash Non-cash 30/06/2024
Cash changes Cash changes
changes changes
Short-term borrowings 15,714,045,288.97 3,462,956,586.42 139,241,663.05 7,390,847,002.81 11,102,651.43 11,914,293,884.20
Long-term borrowings 18,227,543,954.71 4,564,754,569.78 305,651,616.71 2,469,823,509.91 1,642,847,678.60 18,985,278,952.69
Non-current liabilities
6,817,404,289.25 - 2,418,800,214.26 3,497,378,061.05 65,871,631.85 5,672,954,810.61
due within one year
Bonds payable 14,287,508,564.15 2,000,000,000.00 69,178,606.18 - - 16,356,687,170.33
Lease liabilities 1,001,172,206.92 - 600,513,500.64 - 57,696,087.78 1,543,989,619.78
Dividends payable 111,897,214.27 - 3,042,048,832.80 104,678,144.40 - 3,049,267,902.67
Other current liabilities 2,007,190,136.98 2,000,000,000.00 10,637,395.02 2,011,950,819.67 - 2,005,876,712.33
Total 58,166,761,655.25 12,027,711,156.20 6,586,071,828.66 15,474,677,537.84 1,777,518,049.66 59,528,349,052.61
(4) The Group has no cash flows presented on a net basis.
(5) The Group has no significant activities that do not involve cash receipts and payment for
the current period but have an impact on the enterprise's financial position or may affect the
enterprise's cash flows in the future and their financial effects.
- 135 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Supplementary information Current period Prior period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 5,039,645,709.31 4,060,626,620.70
Add: Provision for impairment of assets - -65,324.84
Provision for impairment of credit -315,726,501.93 7,295,621.30
Depreciation of fixed assets 954,005,882.47 1,019,376,080.32
Depreciation of investment properties 91,661,825.39 91,173,671.26
Depreciation of right-of-use assets 170,714,405.05 173,399,908.80
Amortization of intangible assets 336,084,653.13 357,373,882.88
Amortization of long-term prepaid expenses 50,836,674.54 43,553,304.87
Losses from disposal of fixed assets, intangible assets
-884,468.18 -352,045.75
and other long-term assets (losses are marked with "-")
Losses on retirement of fixed assets, intangible assets
3,136,496.62 7,050,703.58
and other long-term assets
Losses from changes in fair value (losses are marked with "-") -465,852,896.11 -143,037,303.68
Financial expenses 1,219,468,426.80 1,091,936,549.51
Investment loss (losses are marked with "-") -3,437,849,898.46 -3,187,492,718.40
Decrease in deferred tax assets 9,960,366.69 22,271,600.81
Increase in deferred tax liabilities 217,992,461.41 64,518,293.20
Decrease in inventories (increase are marked with "-") -78,955,004.79 -27,601,948.90
Decrease in operating receivables (increase are marked with "-") -697,580,401.64 -1,087,893,594.91
Increase in operating payables (decrease are marked with "-") 25,725,974.73 -181,287,994.79
Net cash flows from operating activities 3,122,383,705.03 2,310,845,305.96
2. Significant investing and financing activities that do not involve
cash receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
3. Net changes in cash and cash equivalents:
Closing balance of cash 17,306,212,560.80 14,556,330,454.28
Less: Opening balance of cash 16,018,613,631.10 13,567,309,471.62
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 1,287,598,929.70 989,020,982.66
(2) Cash and cash equivalents
Item 30/06/2024 31/12/2023
I. Cash 17,306,212,560.80 16,018,613,631.10
Including: Cash on hand 2,344,695.38 974,692.93
Bank deposits available for payment at any time 17,303,652,913.86 16,009,954,475.85
Other monetary funds available for payment at any time 214,951.56 7,684,462.32
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the
17,306,212,560.80 16,018,613,631.10
period/year
- 136 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Supplementary information to the cash flow statement - continued
(3) The Group has no items with restricted use but are still presented as cash and cash
equivalents.
(4) Cash and bank balances not classified as cash and cash equivalents
Item Current period Prior period Reason
Restricted guarantees 4643493858 4469737016 Restricted scope of use
Interest receivable from bank deposits 2405696734 1449709100 Not actually received
1200000 1200000 Not available for
Guarantees frozen for ETC
withdrawal at any time
182608598 182608598 Not available for
Funds frozen for litigation
withdrawal at any time
Total 7232999190 6103254714
- 137 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Foreign currency monetary items
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances 2,031,334,053.13
Including: HKD 19,397,181.11 0.91234 17,696,824.21
USD 84,422,167.41 7.12250 601,296,887.38
RMB 1,178,632,822.36 1.00000 1,178,632,822.36
EUR 30,469,149.73 7.67030 233,707,519.17
Accounts receivable 385,115,945.03
Including: HKD 854,441.51 0.91234 779,541.17
USD 2,191,845.87 7.12250 15,611,422.21
EUR 48,071,780.98 7.67030 368,724,981.65
Other receivables 614,950,161.53
Including: HKD 8,545,938.54 0.91234 7,796,801.57
USD 36,614,389.47 7.12250 260,785,989.00
EUR 7,541,589.66 7.67030 57,846,255.17
RMB 288,521,115.79 1.00000 288,521,115.79
Long-term receivables 206,677,268.65
Including: USD 1,023,180.69 7.12250 7,287,604.46
EUR 25,995,028.12 7.67030 199,389,664.19
Short-term borrowings 1,990,000,000.00
Including: RMB 1,990,000,000.00 1.00000 1,990,000,000.00
Accounts payable 51,277,729.08
Including: HKD 3,110,520.44 0.91234 2,837,852.22
USD 2,192,317.81 7.12250 15,614,783.60
EUR 4,279,505.79 7.67030 32,825,093.26
Other payables 910,663,228.13
Including: HKD 32,266,372.16 0.91234 29,437,901.98
USD 71,888,337.64 7.12250 512,024,684.84
EUR 17,483,820.75 7.67030 134,106,150.30
RMB 235,094,491.01 1.00000 235,094,491.01
Non-current liabilities due
117,534,616.28
within one year
Including: USD 15,477,790.20 7.12250 110,240,560.70
RMB 7,294,055.56 1.00000 7,294,055.56
Long-term borrowings 4,354,000,000.00
Including: RMB 4,354,000,000.00 1.00000 4,354,000,000.00
Bonds payable 9,290,817,232.39
Including: USD 1,304,432,043.86 7.12250 9,290,817,232.39
- 138 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
70. Leases
(1) Lessor under operating lease
Item Amount
I. Revenue
Lease income 159,621,039.50
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 205,827,952.84
2nd year 154,612,751.85
3rd year 111,946,208.25
4th year 67,115,685.79
5th year 30,782,259.28
Over 5 years 109,666,984.83
Note: The operating leases where the Group acts as the lessor are related to port and terminal
facilities, machinery and equipment, vehicles, land and buildings, with lease terms ranging
from 1 month to 19 years and option to renew the lease of port and terminal facilities,
machinery and equipment, land and buildings. The Group considers that the unguaranteed
balance of leased assets does not constitute significant risk of the Group, as the assets are
properly used.
(2) Lessee
Item Amount
Interest expenses on lease liabilities 26,893,252.91
Short-term lease expenses that are accounted for using simplified approach
24,384,099.45
and included in cost of related assets or profit or loss for the period
Expenses on leases of low-value assets (exclusive of expenses on short-term leases
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 4,006,036.83
Total cash outflows relating to leases 153,876,109.84
Losses from sale and leaseback transactions -15,122,375.29
Cash inflows from sale and leaseback transactions 40,000,000.00
Cash outflows from sale and leaseback transactions 65,029,365.02
Others -
- 139 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
70. Leases - continued
(2) Lessee - continued
Sale and leaseback transactions and basis for determination:
For the purpose of raising funds and leasing back for use, the Group carries out sale and leaseback
transaction with the legally owned terminal assets as the subject of the transfer and the leased assets,
for a term of three years. As the Group is entitled to repurchase at the expiry of the lease term and
the repurchase price is not lower than the original selling price, it is considered as a financing
transaction and is recognized as a long-term payable when the amount is received from the lessor,
and the difference between the original selling price and the repurchase price is recognized as
interest expenses.
(IX) R&D EXPENDITURE
1. Disclosure by nature of expenses
Item Current period Prior period
Employee benefits 60,963,940.03 93,347,449.40
Direct materials and outsourced R&D 30,948,150.57 44,551,991.78
Depreciation and amortisation 1,989,207.01 8,247,670.29
Others 1,209,359.37 507,493.83
Total 95,110,656.98 146,654,605.30
Including: R&D expenditure recorded as expenses 84,732,961.30 121,041,310.72
R&D expenditure capitalised 10,377,695.68 25,613,294.58
- 140 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(IX) R&D EXPENDITURE - continued
2. Development expenditure for R&D projects that qualify for capitalisation
Increase Decrease
Recognised as Transferred to profit
Item 01/01/2024 Recognised as Recognised as 30/06/2024
Internal development expenditure construction in or loss for the period
fixed assets intangible assets
progress
Eport 30,150,532.71 8,977,517.10 - - - - 39,128,049.81
Other R&D projects 20,839,620.47 1,400,178.58 11,645,284.18 - 755,739.26 - 9,838,775.61
Total 50,990,153.18 10,377,695.68 11,645,284.18 - 755,739.26 - 48,966,825.42
- 141 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION
1. Business combination not involving enterprises under common control
(1) Business combination involving entities not under common control in the current period
The acquiree from the date of purchase to the
Name of the Equity Method of Basis for
Date of equity Consideration of Acquisition period ended 30 June 2024
purchased acquisition equity determination of
acquisition equity acquisition date Net cash
party ratio((%) acquisition acquisition date Income Net profit
inflow/outflow
Cash Transfer of actual
NPH 28 June 2024 414,555,768.20 51.00 28 June 2024 - - -
acquisition control
NPH is a company incorporated on 29 December 2003 and headquartered in Jakarta,
Indonesia, and its principal activities are engaged in the provision of container, multi-
purpose and general terminal services and the provision of port equipment engineering
services in Indonesia. Prior to the Merger, the parent company of NPH was PT Episenta
Utama Investasi. On 20 November 2023, China Merchants Port Holdings, a subsidiary of
the Group, entered into a share purchase agreement with the former controlling shareholder
of NPH. Pursuant to the agreement, the Group plans to acquire 51% of the shares of NPH.
The aforesaid transaction was completed on 28 June 2024 and since then, the Group has the
right to appoint most of the members of the NPH Board Board, and the Board is the authority
leading the NPH related business, the mechanism of the Board of Directors is approved by
more than half of the votes. As a result, the Group is able to control NPH and include it in
the scope of the Group's consolidated financial statements.
(2) Cost of business combination and goodwill
The temporarily estimated combination cost of the above equity acquisition is USD
58,413,038.54 (equivalent to RMB 414,555,768.20), the book value of the identifiable net
assets obtained is temporarily estimated to be RMB 188,797,141.71.
(3) Relevant explanations on the acquisition date or at the end of the current period when the
acquisition consideration or the fair value of the identifiable assets and liabilities of the
acquiree cannot be reasonably determined
At the date of reporting of these financial statements, the necessary valuation and other
calculations of the net assets purchased and liabilities assumed are yet to be finalised, so the
management is temporarily unable to determine the fair value and combined consideration
of the identifiable assets and liabilities arising from the acquisition of 51% of NPH's equity
on 28 June 2024. Any adjustments to these provisional values when finalised will be
recognised within 12 months from the date of acquisition. The calculation of such
adjustments will assume that the fair value has been recognised at the acquisition date.
Goodwill will also be adjusted to the amount that would have been recognised had the fair
value been adopted at the acquisition date.
- 142 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION – continued
1. Business combination not involving enterprises under common control – continued
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.
- 143 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group - Major subsidiaries
Registered capital Shareholding ratio
Principal
Place of Nature of (RMB'0000, of the Company
Name of the subsidiary place of Acquisition method
incorporation business unless otherwise (%)
business
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
(“Wharf Holdings Hong Kong:)
HK China HK China
holding
HKD 1,000,000 100.00 - Established through investment
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
Logistics support Business combination involving
Chiwan Shipping (Hong Kong) Limited HK China HK China HKD 800,000 100.00 -
services enterprises under common control
Investment HKD Business combination involving
CM Port (Note 1) HK China HK China 0.38 49.29
holding 48,730,938,800 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 International Technology Co., Shenzhen Shenzhen Business combination involving
IT service 8,784.82 56.26 43.74
Ltd. (“CM International Tech”) China China enterprises under common control
China Merchants International (China) Investment Shenzhen Shenzhen Investment Business combination involving
USD67,400,000 - 100.00
Co., Ltd. China China holding enterprises under common control
Qingdao Logistics support Business combination involving
China Merchants International Container Terminal Qingdao China USD 206,300,000 - 100.00
China services enterprises under common control
Logistics support Business combination involving
China Merchants Container Services Limited HK China HK China
services
HKD 500,000 - 100.00 enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
China Merchants Port (Shenzhen) Co., Ltd. - 100.00
China China services 55,000.00 enterprises under common control
Engineering
Shenzhen Shenzhen Business combination involving
Shenzhen Haiqin Project Management Co., Ltd.
China China
supervision
1,000.00
- 100.00 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) Qingdao Logistics support Business combination involving
Qingdao China USD 44,000,000 - 90.10
Co., Ltd. China services enterprises under common control
Logistics support Business combination involving
CICT Sri Lanka Sri Lanka
services
USD 150,000,100 - 85.00 enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Magang Godown & Wharf - 100.00
China China services 33,500.00 enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Mawan Port Services Co., Ltd. - 100.00
China China services 20,000.00 enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Tugboat Co., Ltd. - 100.00
China China services 1,500.00 enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Port Co., Ltd. - 60.00
China China services 116,700.00 enterprises under common control
Zhangzhou Investment Promotion Bureau
Zhangzhou Zhangzhou Logistics support Business combination involving
Xiamenwan Port Affairs Co., Ltd. ("Xiamenwan - 31.00
China China services 44,450.00 enterprises under common control
Port Affairs") (Note 2)
Shenzhen Shenzhen Logistics support Business combination involving
Shekou Container Terminals Ltd.
China China services
HKD 618,201,200 - 100.00 enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianyunjie Container Terminals Co., Ltd. - 100.00
China China services 60,854.90 enterprises under common control
Anxunjie Container Terminals (Shenzhen) Co., Shenzhen Shenzhen Logistics support Business combination involving
- 100.00
Ltd. China China services 127,600.00 enterprises under common control
Preparation for
Anyunjie Port Warehousing Service (Shenzhen) Shenzhen Shenzhen Business combination involving
the warehousing - 100.00
Co., Ltd. China China 6,060.00 enterprises under common control
project
- 144 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
Registered capital Shareholding ratio
Principal
Place of Nature of (RMB'0000, of the Company
Name of the subsidiary place of Acquisition method
incorporation business unless otherwise (%)
business
specified) Direct Indirect
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.
China China services
USD 7,000,000 - 100.00 enterprises under common control
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 SCT BVI BVI USD 120.00 - 80.00
holding enterprises under common control
Investment Business combination involving
Oasis King International Limited BVI BVI USD 100.00 - 100.00
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 - 100.00
Togo Togo services enterprises under common control
Investment Business combination involving
Gainpro Resources Limited BVI BVI USD 1.00 - 76.47
holding enterprises under common control
Hambantota International Port Group (Private) Logistics support USD Business combination involving
Sri Lanka Sri Lanka - 85.00
Limited services 1,145,480,000 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 Co., Shenzhen Shenzhen Property lease,
20,000.00 - 100.00 Asset acquisition
Ltd China China etc.
Shenzhen Shenzhen Investment Business combination involving
Juzhongzhi Investment (Shenzhen) Co., Ltd. 4,000.00 - 75.00
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
services
USD 38,140,000 - 100.00 enterprises under common control
Investment Business combination involving
Xinda Resources Limited 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 involving
TCP Brazil Brazil BRL 68,851,600 - 100.00
services enterprises under 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 - 100.00 Asset acquisition
China China services
Zhanjiang Zhanjiang Logistics support Business combination not involving
Zhanjiang Port 587,420.91 30.78 27.58
China China services enterprises under common control
Zhanjiang Port International Container Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
60,000.00 - 80.00
Co., Ltd. China China services enterprises under common control
Zhanjiang Port Petrochemical Terminal Co., Ltd. Zhanjiang Zhanjiang Logistics support Business combination not involving
(Note 4) China China services
18,000.00 - 50.00 enterprises under common control
Zhanjiang Zhanjiang Logistics support Business combination not involving
China Ocean Shipping Tally Co., Ltd., Zhanjiang 300.00 - 84.00
China China services enterprises under common control
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
5,000.00 - 100.00
Co., Ltd. China China services enterprises under common control
Zhanjiang Zhanjiang Logistics support Business combination not involving
Zhanjiang Port Logistics 10,000.00 - 100.00
China China services enterprises under common control
Guangdong Zhanjiang Port Longteng Shipping Zhanjiang Zhanjiang Logistics support Business combination not involving
9,000.00 - 51.00
Co., Ltd. China China services enterprises under 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
Shenzhen Shenzhen Owning China HKD Business combination involving
Malai Warehousing (Shenzhen) Co., Ltd - 100.00
China China Qianhai property 1,600,000,000 enterprises under common control
Hong Kong Hong Kong Investment
Ports Development (Hong Kong) Limited 2,768,291.56 100.00 - Established through investment
China China holding
Logistics support
Shunkong Port Foshan China Foshan China 34,489.79 51.00 - Asset acquisition
services
South Asia Trade and Logistics Center Co., Logistics support
Sri Lanka Sri Lanka USD 37,140,000 - 70.00 Established through investment
Ltd.("SACL") services
Logistics support Business combination not involving
NPH Indonesia Indonesia USD 17,146,400 51.00 -
services enterprises under common control
- 145 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
Note 1: On 19 June 2018, the Company signed a concerted action agreement with China
Merchants Group (Hong Kong) Co., Ltd. ("CMHK"). 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..
For the period from 1 January to 30 June 2024, Ports Development (Hong Kong) Co., Ltd.
acquired 16,364,000 ordinary shares of CM Port from the secondary market. Upon the
completion of above transaction, the proportion of the ordinary shares of CM Port held by
the Group to the total issued ordinary shares of CM Port was changed from 49.28% to
49.67%, while the proportion of the ordinary shares of CM Port held by CMHK to the
total issued ordinary shares of CM Port remains at 21.85%. Therefore, the Company has
71.52% voting power on CM Port in total and is able to 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% equity of ZCMG to the Group for operation
and management. Therefore, the Group has 60% 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% 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.
- 146 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Significant non-wholly-owned subsidiaries
Proportion of Profit or loss Dividends distributed Balance of
Name of the ownership interest attributable to minority to minority minority interests
subsidiary held by the minority shareholders in the shareholders in the at the end of the
shareholders (%) current period current period period
CM Port 50.33 2,384,427,075.81 101,064,383.48 61,988,357,635.28
- 147 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(3) Major financial information of significant non-wholly-owned subsidiaries
30/06/2024 31/12/2023
Name of the
Non-current Current Non-current Non-current Current Non-current
subsidiary Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
CM Port 14,199,310,910.95 136,636,477,271.26 150,835,788,182.21 16,403,014,793.83 27,941,614,356.05 44,344,629,149.88 15,917,026,132.04 135,313,877,243.36 151,230,903,375.40 18,457,977,486.53 27,802,818,508.45 46,260,795,994.98
Current period Prior period
Name of
Total Total
the Cash flows from Cash flows from
Operating income Net profit comprehensive Operating income Net profit comprehensive
subsidiary operating activities operating activities
income income
CM Port 5,358,500,426.44 4,328,318,286.06 3,762,456,581.36 2,326,973,972.98 5,194,887,619.90 3,414,374,406.15 4,971,619,164.12 1,737,702,226.98
- 148 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
2. Transactions resulting from changes in ownership interests in subsidiaries without
losing control over the subsidiaries
(1) Description of changes in ownership interests in subsidiaries
During the period, the Group's ownership interests in CM Port is changed from 49.28% to 49.67%.
Details are set out in Note (XI) 1 (1).
(2) Effect of the transactions on minority interests and equity attributable to owners of the
Company
Item CM Port
Acquisition cost
- Cash 147,607,116.30
- Non-cash assets -
Total acquisition cost 147,607,116.30
Less: Share of net assets of subsidiaries calculated based on the proportion of equity acquired 364,489,387.78
Difference -216,882,271.48
Including: Adjustment to capital reserve 216,882,271.48
Adjustment to surplus reserve -
Adjustment to unappropriated profit -
3. Interests in joint ventures and associates
(1) Significant joint ventures or associates
Proportion of ownership
Accounting treatment
Principal place Place of interests held by the Group
Investee Nature of business of investments in
of business registration (%)
associates
Direct Indirect
Associate
Port and container
SIPG Shanghai, PRC Shanghai, PRC - 28.05 Equity method
terminal business
Port and container
Ningbo Zhoushan Ningbo, PRC Ningbo, PRC 20.98 2.10 Equity method
terminal business
- 149 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate
SIPG
30/06/2024/ 31/12/2023/
Current period Prior period
Current assets 54,459,502,106.36 53,049,570,240.87
Including: Cash and cash equivalents 35,603,509,406.57 35,721,676,040.14
Non-current assets 152,937,482,676.42 150,525,944,932.10
Total assets 207,396,984,782.78 203,575,515,172.97
Current liabilities 24,289,860,041.69 22,835,359,505.98
Non-current liabilities 41,306,203,520.07 44,553,743,360.00
Total liabilities 65,596,063,561.76 67,389,102,865.98
Net assets 141,800,921,221.02 136,186,412,306.99
Minority interests 14,085,966,668.22 13,010,972,126.11
Net assets attributable to owners of the Company 127,714,954,552.80 123,175,440,180.88
Share of net assets calculated based on the proportion of
35,824,044,752.06 34,550,710,970.74
ownership interests
Adjustments
- Goodwill 2,427,508,397.27 2,427,508,397.27
- Others 230,378,316.30 234,665,770.76
Carrying amount of equity investments in associates 38,481,931,465.63 37,212,885,138.77
Fair value of publicly quoted equity investments in associates 37,750,988,244.10 32,003,432,940.50
Operating income 19,837,572,517.98 16,111,541,335.25
Net profit 9,027,010,146.72 7,738,322,182.71
Other comprehensive income 23,253,380.05 -25,369,452.55
Total comprehensive income 9,050,263,526.77 7,712,952,730.16
Dividends received from associates in the current period 1,123,385,809.34 914,383,798.30
- 150 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate- continued
Ningbo Zhoushan
30/06/2024/ 31/12/2023/
Current period Prior period(Restated)
Current assets 17,766,828,000.00 19,223,549,000.00
Including: Cash and cash equivalents 6,549,175,000.00 9,635,337,000.00
Non-current assets 93,830,624,000.00 93,105,852,000.00
Total assets 111,597,452,000.00 112,329,401,000.00
Current liabilities 20,465,160,000.00 22,201,633,000.00
Non-current liabilities 9,702,588,000.00 9,429,720,000.00
Total liabilities 30,167,748,000.00 31,631,353,000.00
Net assets 81,429,704,000.00 80,698,048,000.00
Minority interests 6,016,161,000.00 5,828,457,000.00
Net assets attributable to owners of the Company 75,413,543,000.00 74,869,591,000.00
Share of net assets calculated based on the proportion of
17,405,445,724.40 17,279,901,602.80
ownership interests
Adjustments
- Goodwill 1,231,115,756.87 1,231,115,756.87
- Others 120,194,564.52 120,136,754.64
Carrying amount of equity investments in associates 18,756,756,045.79 18,631,154,114.31
Fair value of publicly quoted equity investments in associates 15,264,212,433.00 15,982,528,312.20
Operating income 14,442,173,000.00 12,415,879,000.00
Net profit 2,502,531,000.00 2,477,571,000.00
Other comprehensive income 55,859,000.00 37,289,000.00
Total comprehensive income 2,558,390,000.00 2,514,860,000.00
Dividends received from associates in the current period 408,578,523.82 390,875,794.33
Note: Ningbo Zhoushan's financial data are accurate to the nearest RMB 1,000.00.
5. Summarized financial information of insignificant associates and joint ventures
30/06/2024/ 31/12/2023/
Item
Current period Prior period
Joint ventures:
Total carrying amount of investments 9,189,779,856.07 8,957,993,335.22
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 184,538,049.76 169,975,433.54
- Other comprehensive income - -1,446,746.71
- Total comprehensive income 184,538,049.76 168,528,686.83
Associates:
Total carrying amount of investments 31,550,197,897.67 31,864,085,187.97
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 297,969,374.46 384,990,619.70
- Other comprehensive income -113,060,474.11 100,418,506.79
- Total comprehensive income 184,908,900.35 485,409,126.49
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.
- 151 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS
1. No government grants recognised as receivables at the end of current period
2. Liabilities involving government grants
Amount Amount
New
transferred into transferred Other Related to
Item 31/12/2023 government 30/06/2024
non-operating into other changes assets/income
grants
income income
Deferred income 1,024,776,557.73 450,000.00 - 25,422,775.68 - 999,803,782.05 Related to assets
Total 1,024,776,557.73 450,000.00 - 25,422,775.68 - 999,803,782.05
3. Government grants included in profit or loss
Item Current period Prior period
Business development subsidy 71,860,214.43 10,065,510.04
Special fund for operation 6,677,269.13 6,146,204.98
Earmarked funds for innovation 2,004,500.00 1,607,911.86
Others 544,528.17 4,703,937.03
Total 81,086,511.73 22,523,563.91
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances, held-for-trading financial
assets, notes receivable, accounts receivable, receivables financing, other receivables, long-term
receivables, other non-current financial assets, borrowings, notes payable, accounts payable, other
payables, other current liabilities, non-current liabilities due within one year, bonds payable, long-
term payables, other non-current liabilities, etc. Details of these financial instruments are disclosed
in Note (VIII). The risks associated with these financial instruments and the policies on how to
mitigate these risks are set out below. Management of the Group manages and monitors these
exposures to ensure the risks are monitored at a certain level.
The Group adopts sensitivity analysis technique to analyse how the profit and loss for the period
and shareholders' equity would have been affected by reasonably possible changes in the relevant
risk variables. As it is unlikely that risk variables will change in an isolated manner, and the
interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable, the following are based on the assumption that
the change in each risk variable is on a stand-alone basis..
1. Risk management objectives, policies and procedures, and changes for the period
The Group's risk management objectives are to achieve a proper balance between risks and yield,
minimise the adverse impacts of risks on the Group's operation performance, and maximise the
benefits of the shareholders and other stakeholders. Based on these risk management objectives, the
Group's basic risk management strategy is to identify and analyse the Group's exposure to various
risks, establish an appropriate maximum tolerance to risk, implement risk management, and
monitors regularly and effectively these exposures to ensure the risks are monitored at a certain
level.
- 152 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives, policies and procedures, and changes for the period
- continued
1.1 Market risk
1.1.1 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 2024, the balances of the Group's assets and liabilities are both denominated
in functional currency, except that the assets and liabilities set out below are recorded using foreign
currencies. Currency risk arising from the foreign currency balance of assets and liabilities may
have impact on the Group's performance.
Item 30/06/2024 31/12/2023
Cash and bank balances 1,265,099,646.59 487,182,682.32
Accounts receivable 16,390,963.38 10,544,159.14
Other receivables 571,421,158.33 339,131,902.71
Long-term receivables 199,389,664.19 204,300,125.00
Short-term borrowings 1,990,000,000.00 2,990,000,000.00
Accounts payable 18,452,635.82 1,379,762.77
Other payables 527,609,941.60 300,187,007.82
Non-current liabilities due within one year 7,294,055.56 9,339,586.11
Long-term borrowings 4,354,000,000.00 4,656,000,000.00
Long-term payables - 9,391,615.50
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, the management considers it is unlikely that the exchange rate changes in the next year
will result in significant loss to the Group.
- 153 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives, policies and procedures, and changes for the period
- continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
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 Effect
shareholders' shareholders'
on profit on profit
equity equity
All foreign currencies 5% increase against RMB -256,433,226.39 -256,430,949.87 -276,673,157.63 -276,673,157.63
All foreign currencies 5% decrease against RMB 256,433,226.39 256,430,949.87 276,673,157.63 276,673,157.63
All foreign currencies 5% increase against USD 2,864,804.01 2,864,804.01 4,281,779.89 4,281,779.89
All foreign currencies 5% decrease against USD -2,864,804.01 -2,864,804.01 -4,281,779.89 -4,281,779.89
All foreign currencies 5% increase against HKD -300,129.36 -300,129.36 2,568,826.80 2,568,826.80
All foreign currencies 5% decrease against HKD 300,129.36 300,129.36 -2,568,826.80 -2,568,826.80
5% increase against EUR
All foreign currencies 11,613,515.19 11,613,515.19 11,197,132.33 11,197,132.33
(including FCFA)
5% decrease against EUR
All foreign currencies -11,613,515.19 -11,613,515.19 -11,197,132.33 -11,197,132.33
(including FCFA)
1.1.2 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) 24 and Note (VIII) 34). 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.
- 154 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives, policies and procedures, and changes for the period
- continued
1.1 Market risk - continued
1.1.2 Interest rate risk - changes in cash flows - continued
Sensitivity analysis on interest rate risk
Sensitivity analysis on 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 affect its fair value, and all interest rate hedges 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 Effect on Effect on
Item
interest rate Effect on profit shareholders' Effect on profit shareholders'
equity equity
Short-term borrowings and
1% increase -311,872,062.49 -311,872,062.49 -218,624,405.40 -218,624,405.40
long-term borrowings
Short-term borrowings and
1% decrease 311,872,062.49 311,872,062.49 218,624,405.40 218,624,405.40
long-term borrowings
1.2 Credit risk
As at 30 June 2024, the Group's maximum exposure to credit risk which will cause a financial loss
to the Group due to failure to discharge an obligation by the counterparties and financial guarantees
issued by the Group (without considering the available collateral or other credit enhancements) is
arising from cash and bank balances (Note (VIII), 1), notes receivable (Note (VIII), 3), accounts
receivable (Note (VIII), 4), other receivables (Note (VIII), 7), long-term receivables (Note (VIII),
11), etc. At the balance sheet date, the carrying amounts of the Group's financial assets represent its
maximum exposure to credit risk. In addition, the Group's maximum credit risk exposure to credit
losses includes the amount of financial guarantee contract as disclosed in Note (XVII), 2
"Contingencies".
- 155 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives, policies and procedures, and changes for the period
- continued
1.2 Credit risk - continued
In order to minimise the credit risk, the Group has delegated a department responsible for
determination of credit limits, credit approvals and other monitoring procedures to ensure that
follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable
amount of financial assets at each balance sheet date to ensure that adequate provision for credit
loss is made for relevant financial assets. In this regard, the management of the Group considers
that the Group's credit risk is significantly reduced.
The credit risk on cash and bank balances is limited because they are deposited with financial
institutions with high credit ratings.
The Group has no significant concentration of credit risk, with exposure spread over a number of
counterparties and customers.
The Group has adopted a policy to ensure that all sales customers have good credit records.
1.3 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 utilisation of bank
borrowings and ensures compliance with loan covenants.
As at 30 June 2024, the Group had total current liabilities in excess of total current assets of RMB
2,208,237,561.88. As at 30 June 2024, the Group had available and unused line of credit and bonds
amounting to RMB68,897,329,600.71, which is greater than the balance of the net current liabilities.
The Group can obtain financial support from the available line of credit and bonds when needed.
Therefore, the Group's management believes that the Group has no significant liquidity risk.
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 11,914,293,884.20 11,991,406,611.07 11,991,406,611.07 - -
Notes payable 33,648,733.23 33,648,733.23 33,648,733.23 - -
Accounts payable 595,136,679.08 595,136,679.08 595,136,679.08 - -
Other payables 4,637,311,020.75 4,637,311,020.75 4,637,311,020.75 - -
Non-current liabilities due
5,623,732,333.96 7,025,181,079.54 7,025,181,079.54 - -
within one year
Other current liabilities 2,132,961,799.00 2,136,808,374.34 2,136,808,374.34 - -
Long-term borrowings 18,985,278,952.69 19,974,585,031.13 - 17,811,909,475.70 2,162,675,555.43
Bonds payable 16,356,687,170.33 17,773,512,305.16 - 16,073,523,264.06 1,699,989,041.10
Lease liabilities 1,543,989,619.78 3,621,199,957.64 - 529,024,750.03 3,092,175,207.61
Long-term payables 3,549,972,175.88 3,582,598,841.91 - 671,822,547.34 2,910,776,294.57
- 156 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Fair value at 30/06/2024
Level 1 Level 2 Level 3
Item
Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value
Held-for-trading financial assets - 3,180,085,926.18 - 3,180,085,926.18
Receivables financing - - - -
Investments in other equity instruments - - 157,461,648.16 157,461,648.16
Other non-current financial assets 1,294,931,788.20 - 27,353,713.60 1,322,285,501.80
Total assets continuously measured
1,294,931,788.20 3,180,085,926.18 184,815,361.76 4,659,833,076.14
at fair value
2. Basis for determining the market price of items continuously measured at level 1 fair
value
The market prices of held-for-trading financial assets and other non-current financial assets are
determined based on the closing price of the equity instruments at Stock Exchange at 30 June 2024.
3. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Item Fair value at 30/06/2024 Valuation techniques Inputs
Held-for-trading financial assets 3,180,085,926.18 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 return as the input.
4. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 3 fair value
Fair value at
Item Valuation techniques Inputs
30/06/2024
Investments in other equity
157,461,648.16 Net worth method Carrying amount
instruments
Other non-current financial assets 737,436.89 Net worth method Carrying amount
Other non-current financial assets 26,616,276.71 Listed company comparison approach Share price
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
net worth method, listed company comparison approach etc.
- 157 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE - continued
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, long-term 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.
- 158 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of
Proportion of voting
Related party Place of ownership interests
Name of the Company Type of the entity Nature of business Issued share capital power held by the
relationship registration held by the Company
Company (%)
(%)
Broadford Global Limited Parent Private limited company (share limited) Hong Kong Investment holding HKD 21,120,986,262 2.21 62.99 (Note)
Note: Broadford Global Limited directly holds 2.21% equity of the Company, and indirectly holds 14.83% and 45.94% equity of the Company through
the subsidiaries China Merchants Gangtong Development (Shenzhen) Co., Ltd. and China Merchants Port Investment Development Company
Limited respectively. The ultimate controlling shareholder of the Company is China Merchants Group.
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in Note (X) 1, Note (XI) 1.
- 159 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
3. Associates and joint ventures of the Company
Details of the Company's significant joint ventures and associates are set out in Note (XI) 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 year are as
follows:
Name of joint venture or associate Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Guizhou East Land Port Operation Co., Ltd. Joint venture
Qingdao Qianwan 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
China Merchants Port (Shenzhen) Industrial Innovation Private Equity
Joint venture
Investment Fund Partnership (Limited Partnership) ("Investment Fund")
Shenzhen Gangteng Internet Technology Co., Ltd Joint venture
Doraleh Multi-purpose Port Associate
Great Horn Development Company FZCo Associate
International Djibouti Industrial Parks Operation FZCo Associate
PORT DE DJIBOUTI S.A. Associate
Terminal Link SAS Associate
Tin-Can Island Container Terminal Ltd Associate
Guizhou Qiandongnan Continental Land Port Operation Co., Ltd. Associate
Nanshan Group and its subsidiaries Associate
SIPG Associate
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
Tianjin Port Container Terminal 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 Haike Industrial Operation Co., Ltd. Associate
Associate, controlled by the same
Liaoning Port and its subsidiaries
ultimate controlling shareholder
New Land-Sea Corridor Operation (Zhanjiang) Co., Ltd. Associate
Antong Holdings and its subsidiaries ("Antong Holdings") Associate
- 160 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
Name of other related parties Relationship with the Company
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
Zhanjiang Infrastructure Construction Investment Group Co., Ltd. Minority shareholder of subsidiary
Dalian Port Logistics Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Communications Engineering Co., Ltd. Controlled by the same ultimate controlling shareholder
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
Controlled by the same ultimate controlling shareholder
Co., Ltd.
Qingdao Sinotrans Supply Chain Management Co., Ltd. Controlled by the same ultimate controlling shareholder
Penavico Shenzhen Warehousing 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
Shenzhen Merchants to Home Technology 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
Controlled by the same ultimate controlling shareholder
Limited
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
Sinotrans Changhang Group Limited Controlled by the same ultimate controlling shareholder
Shenzhen Dehan Investment Development Co., Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Guangdong Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Healthcare (Qichun) 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
- 161 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
Name of other related parties Relationship with the Company
China Merchants 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-Logistics 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 Co., Ltd. and its subsidiaries
Controlled by the same ultimate controlling shareholder
("Yingkou Port Group")
Liaoning Port Group Co., Ltd. Controlled by the same ultimate controlling shareholder
Liaoning Electronic Port Co., Ltd. Controlled by the same ultimate controlling shareholder
China Yangtze River Shipping Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Gangrong Big Data Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Construction Supervision Consulting 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
China Merchants Apartment Development (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Bonded Zone Yongdexin Real Estate Development &
Controlled by the same ultimate controlling shareholder
Construction Co., Ltd.
Jifa Logistics Controlled by the same ultimate controlling shareholder
Dalian Jifa South Coast International Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Jifa Port Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shipping and Enterprises Company Limited Controlled by the same ultimate controlling shareholder
Ningbo Transocean International Forwarding Agency 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 Port and Shipping Digital Technology
Controlled by the same ultimate controlling shareholder
(Liaoning) Co., Ltd.
Ocean Driller III Limited Controlled by the same ultimate controlling shareholder
Dalian Ganglong Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Logistics Group (Tianjin) Co., Ltd. Controlled by the same ultimate controlling shareholder
Haitong Haihui (Shanghai) Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
CSC Cargo Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Supply Chain Limited Controlled by the same ultimate controlling shareholder
Sinotrans Djibouti Transportation and Shipping Agency Co., Ltd. Controlled by the same ultimate controlling shareholder
AVIC Property Management Co., Ltd Controlled by the same ultimate controlling shareholder
Shenzhen Wanhai Building Management Co., Ltd. Significantly influenced by the ultimate controlling shareholder
China Merchants Union (BVI) limited Significantly influenced by the ultimate controlling shareholder
Datong Securities Co., Ltd. Significantly influenced by the ultimate controlling shareholder
Dalian Automobile Terminal Co., Ltd. Significantly influenced by the ultimate controlling shareholder
Dalian Port Design Research Institute Co., Ltd. Significantly influenced by the ultimate controlling shareholder
Khor Ambado FZCo Significantly influenced by the ultimate controlling shareholder
China Merchants Bank Co., Ltd. Significantly influenced by the ultimate controlling shareholder
China Merchants (Shenzhen) Power Supply Co., Ltd. Significantly influenced by the ultimate controlling shareholder
- 162 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Rendering and receipt of services
Pricing method and
decision procedures
Related party Content of transaction Current period Prior period
of related
transactions
Receipt of services:
Shenzhen Bay Electricity Industry Co., Ltd. Service expenditure Negotiation 18,364,365.64 26,554,647.89
Shenzhen Nanyou (Holdings) Ltd. Service expenditure Negotiation 17,899,824.44 18,821,945.88
China Merchants (Shenzhen) Power Supply Co., Ltd. Service expenditure Negotiation 5,121,162.21 8,840,100.79
Qingdao Qianwan West Port United Wharf Co., Ltd. Service expenditure Negotiation 9,441,654.65 7,940,246.77
Shenzhen West Port Security Service Co., Ltd. Service expenditure Negotiation 5,934,502.97 5,307,294.72
Hoi Tung (Shanghai) Company Limited Service expenditure Negotiation 4,295,541.54 2,045,941.84
Yiu Lian Dockyards Limited Service expenditure Negotiation 3,546,037.61 4,119,568.07
China Merchants Property Management (Shenzhen) Service expenditure Negotiation 2,914,842.28 5,330,755.99
China Merchants Zhangzhou Development Zone Power Service expenditure Negotiation 2,806,920.55 2,689,704.35
Nanshan Group and its subsidiaries Service expenditure Negotiation 2,340,464.64 2,819,999.34
China Merchants Commercial Property Investment
Service expenditure Negotiation 2,109,363.08 5,096,401.49
(Shenzhen) Co., Ltd.
International Djibouti Industrial Parks Operation FZCo Service expenditure Negotiation 2,006,556.55 1,212,761.22
Ningbo Zhoushan and its subsidiaries Service expenditure Negotiation - 6,331,246.17
Other related parties Service expenditure Negotiation 16,478,938.50 8,634,096.98
China Merchants Bank Co., Ltd. Purchase of structured
Negotiation 2,320,000,000.00 2,080,000,000.00
deposits
China Merchants Bank Co., Ltd. Interest expense Negotiation 28,544,630.32 7,939,144.17
China Merchants Group Finance Company Limited Interest expense Negotiation 16,832,904.93 12,606,686.11
China Merchants Finance Lease (Shanghai) Co., Ltd. Interest expense Negotiation 1,707,016.51 4,562,849.95
China Merchants Finance Lease (Tianjin) Co., Ltd. Interest expense Negotiation 1,653,973.16 1,014,263.69
Total —— —— 2,461,998,699.58 2,211,867,655.42
Rendering of service:
COSCO Logistics (Zhanjiang) Co., Ltd. Service revenue Negotiation 129,725,425.39 110,744,402.53
Antong Holdings Service revenue Negotiation 79,402,988.48 17,464,158.08
China Ocean Shipping Agency (Zhanjiang) Co., Ltd. Service revenue Negotiation 39,896,986.31 34,373,990.47
Qingdao Qianwan United Container Terminal Co., Ltd. Service revenue Negotiation 29,516,987.91 28,810,177.52
China Marine Shipping Agency Guangdong Co., Ltd. Service revenue Negotiation 17,120,465.09 14,170,082.79
China Merchants International Shipping Agency Service revenue Negotiation 9,584,350.77 13,335,734.13
Sinotrans Container Lines Co., Ltd. Service revenue Negotiation 7,788,611.36 4,361,180.07
Yiu Lian Dockyards (Shekou) Limited Service revenue Negotiation 5,789,639.47 6,049,745.64
Sinotrans Shenzhen Qianhai Supply Chain Service revenue Negotiation 5,514,141.96 5,122,531.86
China Ocean Shipping Agency Shenzhen Service revenue Negotiation 4,512,358.45 3,530,714.66
China Merchants International Cold Chain (Shenzhen) Service revenue Negotiation 3,617,926.00 3,573,112.10
CM Port Chuangrong (Shenzhen) Technology Co., Ltd. Service revenue Negotiation 3,273,043.34 5,399,572.64
Shenzhen Baohong Technology Co., Ltd. Service revenue Negotiation 2,788,710.48 4,665,334.02
Liaoning Port and its subsidiaries Service revenue Negotiation 2,164,982.97 29,653,667.27
New Land-Sea Corrodor Operation (Zhanjiang) Co., Ltd. Service revenue Negotiation 1,379,772.34 3,141,567.23
China Merchants Port Investment Development Company
Service revenue Negotiation 660,943.40 1,554,377.36
Limited
Yingkou Port Group and its subsidiaries Service revenue Negotiation - 13,685,712.13
Other related parties Service revenue Negotiation 22,732,903.49 61,278,553.32
Port of Newcastle and its subsidiaries Interest income Negotiation 34,832,183.27 24,964,528.83
China Merchants Bank Co., Ltd. Interest income Negotiation 16,828,019.29 29,498,613.99
China Merchants Group Finance Company Limited Interest income Negotiation 19,216,790.25 14,717,409.20
Terminal Link SAS Interest income Negotiation 6,269,446.51 88,397,856.38
Tianjin Haitian Bonded Logistics Co., Ltd. Interest income Negotiation 569,824.03 609,957.55
Total —— —— 443,186,500.56 519,102,979.77
- 163 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) 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
decision procedures
Name of the lessee Type of leased assets recognized in the recognized in the
of related
current period prior period
transactions
Qingdao Qianwan West Port United Wharf Co., Ltd. Buildings and structures Negotiation 7,147,337.58 6,848,492.44
Qingdao Bonded Logistics Park Sinotrans Warehousing
Port and terminal facilities Negotiation 2,883,944.28 3,449,293.79
Logistics Co., Ltd.
China Merchant Food (China) Co., Ltd. Buildings and structures Negotiation 899,729.58 2,910,341.70
China Traffic Import and Export Co., Ltd. Buildings and structures Negotiation 2,589,835.38 2,736,536.28
Qingdao Sinotrans Mining Technology Co., Ltd. Buildings and structures Negotiation 2,375,278.56 2,375,278.56
Qingdao Sinotrans Supply Chain Management Co., Ltd. Buildings and structures Negotiation 1,666,134.78 1,444,859.56
Qingdao Qianwan United Container Terminal Co., Ltd. Buildings and structures Negotiation 2,393,117.24 1,661,969.04
Equipment and storage
CM Port Chuangrong (Shenzhen) Technology Co., Ltd. Negotiation 1,288,713.18 1,430,912.28
yards
Qingdao Wutong Century Supply Chain Co., Ltd. Buildings and structures Negotiation 1,349,106.93 1,341,694.24
China Merchants Securities Co., Ltd. Buildings and structures Negotiation 1,275,298.17 1,333,059.69
Nanshan Group and its subsidiaries Buildings and structures Negotiation 959,298.55 1,125,136.47
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 1,064,638.09 1,122,531.42
Qingdao Sinotrans Logistics Co., Ltd. Buildings and structures Negotiation 1,238,834.28 825,889.52
China Merchants Real Estate (Shenzhen) Co., Ltd. Buildings and structures Negotiation 1,112,769.54 -
Buildings and structures,
Other related parties Land use rights, Port and Negotiation 4,458,957.28 3,402,652.04
terminal facilities
Total 32,702,993.42 32,008,647.03
- 164 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties - continued
The Group as the lessee:
Short-term lease expenses or
Variable lease payments that are not
expenses on leases of low- Interest expenses on lease
included in the measurement of Rental paid Addition to right-of-use assets
Name of the lessor Type of leased assets value assets that are accounted liabilities
lease liabilities
for using simplified approach
Current period Prior period Current period Prior period Current period Prior period Current period Prior period Current period Prior period
China Merchants Finance Lease Port and terminal facilities,
- - - - 53,069,186.95 58,076,069.28 1,707,016.51 4,562,849.95 - -
(Shanghai) Co., Ltd. Machinery and equipment
Buildings and structures,
Nanshan Group Port and terminal facilities, 114,010.98 - - - 33,839,758.29 34,945,377.83 1,099,787.96 2,603,797.36 1,018,879.00 33,834.89
Land use right, Others
China Merchants Tongshang Finance
Machinery and equipment - - - - - 23,190,959.27 - 905,080.70 - -
Lease Co., Ltd.
China Merchants Finance Lease (Tianjin)
Port and terminal facilities - - - - 21,519,888.10 19,394,624.82 1,704,729.75 2,195,437.17 - -
Co., Ltd.
China Merchants Shekou Industrial Zone
Port and terminal facilities,
Holdings - - - - 19,893,126.15 18,349,561.31 1,366,247.62 784,084.82 35,053,682.62 -
Land use right
Co., Ltd.
EuroAsia Dockyard Enterprise and
Development Port and terminal facilities - - - - 7,504,804.84 7,571,928.07 331,040.40 332,056.61 - -
Limited
Shenzhen Qianhai Shekou Free Trade
Port and terminal facilities,
Investment 3,216,192.69 3,968,660.40 - - 4,206,780.00 4,087,720.19 - - - -
Land use right
Development Co., Ltd.
China Merchants Commercial Property
Buildings and structures,
Investment - - - - 3,218,961.42 3,190,516.56 115,659.93 277,944.19 - 4,809,924.03
Machinery and equipment
(Shenzhen) Co., Ltd.
Shenzhen Nanyou (Holdings) Ltd. Land use right 316,862.88 997,776.60 - - 332,706.00 997,776.60 - - - -
China Merchants International Cold Chain
Others - 148,500.00 - - 410,967.28 946,881.45 13,314.73 21,273.00 2,554,727.16 -
(Shenzhen) Company Limited
Shenzhen Wanhai Building Management
Buildings and structures - - - - 1,162,417.00 610,722.00 40,745.94 33,840.58 2,946,807.86 -
Co., Ltd.
Dalian Bonded Zone Yongdexin Real - - - - - - - - -
Estate Development & Construction Co., Buildings and structures 206,927.36
Ltd.
- 165 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties - continued
The Group as the lessee: - continued
Short-term lease expenses or
Variable lease payments that are
expenses on leases of low-value Interest expenses on lease
not included in the measurement Rental paid Addition to right-of-use assets
Name of the lessor Type of leased assets assets that are accounted for liabilities
of lease liabilities
using simplified approach
Current period Prior period Current period Prior period Current period Prior period Current period Prior period Current period Prior period
China Merchants Apartment Development
Buildings and structures - 72,331.43 - - - 71,337.15 - - - -
(Shenzhen) Co., Ltd.
Dalian Port Group Corporation Limited Buildings and structures - - - - - 40,000.00 - 3,316.24 - -
Dalian Port Communications Engineering Co.,
Buildings and structures - - - - - 25,000.00 - 4,842.09 - -
Ltd.
Shenzhen Chiwan Haike Industrial Operation Port and terminal
685,714.31 - - - 792,000.00 - - - - -
Co., Ltd. facilities
Machinery and
Baosteel Zhanjiang Iron&Steel Co.,Ltd. - - - - - 1,800,000.00 - 23,339.88 - 5,119,357.99
equipment
Total 4,332,780.86 5,187,268.43 - - 145,950,596.03 173,505,401.89 6,378,542.84 11,747,862.59 41,574,096.64 9,963,116.91
- 166 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(3) Related party guarantees
The Group as the guarantor
The guarantee has
Guaranteed
Secured party Credit line Commencement date Maturity been completed or
amount
not
30/6/2024
Terminal Link SAS (Note 1) 63,032,327.89 63,032,327.89 11 June 2013 2033 No
Khor Ambado FZCo (Note 2) 205,251,840.00 167,333,285.10 24 May 2019 2032 No
Terminal Link SAS (Note 1) 115,240,356.00 115,240,356.00 25 Jan 2023 2030 No
Total 383,524,523.89 345,605,968.99 —— —— ——
31/12/2023
Terminal Link SAS (Note 1) 76,655,687.32 76,655,687.32 11 June 2013 2033 No
Khor Ambado FZCo (Note 2) 203,981,760.00 156,254,811.86 24 May 2019 2032 No
Terminal Link SAS (Note 1) 114,527,259.00 114,527,259.00 25 Jan 2023 2030 No
Total 395,164,706.32 347,437,758.18 —— —— ——
Note 1: CMA CGM S.A. is another shareholder of Terminal Link SAS, an associate of the Group.
The Group has made a commitment to CMA CGM S.A. that the Group will provide
guarantee for its bank loans and other liabilities to Terminal Link SAS to the extent of the
Group's 49% ownership interest in the company. The actual guaranteed amount is RMB
178,272,683.89 as at 30 June 2024. If any guarantee liability occurs, the Group will
compensate CMA CGM S.A.
Note 2: Khor Ambado FZCo is a related party of the Group's ultimate controlling shareholder. The
Group provides guarantee for its bank loans and other liabilities, the actual amount of
which as at 30 June 2024 is RMB 167,333,285.10.
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
For the period from 1 January to 30 June 2024
Borrowings
China Merchants Bank Co., Ltd. 1,250,000,000.00 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 173,500,000.00 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 48,309,473.68 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co., Ltd. 1,260,000,000.00 Actual borrowing date Agreed repayment date Long-term borrowings
Total 2,731,809,473.68 —— —— ——
For the year ended 31 December 2023
Borrowings
China Merchants Group Finance Company Limited 1,150,941,725.01 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co., Ltd. 576,421,628.29 Actual borrowing date Agreed repayment date Long-term borrowings
Ocean Driller III Limited 332,846,013.33 Actual borrowing date Agreed repayment date Other current liabilities
China Merchants Group Finance Company Limited 207,179,377.43 Actual borrowing date Agreed repayment date Short -term borrowings
China Merchants Bank Co., Ltd. 68,062,333.33 Actual borrowing date Agreed repayment date Long -term borrowings
Total 2,335,451,077.39 —— —— ——
- 167 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision procedures of Current period Prior period
related transactions
Ningbo Zhoushan Equity investment Valuation - 1,845,000,000.00
Liaoning Port Equity investment Valuation - 83,027,500.00
Dalian Port Container Equity investment Valuation - 57,083,400.00
Jifa Logistics Equity investment Valuation - 33,815,300.00
Yingkou Port Group Equity investment Valuation - 19,002,800.00
Total —— —— 2,037,929,000.00
(6) Compensation for key management personnel
Item Current period Prior period
Compensation for key management personnel 8,080,998.82 8,972,032.11
6. Amounts due from/to related parties that have not settled
(1) Amounts due from related parties
Item Related party 30/06/2024 31/12/2023
China Merchants Bank Co., Ltd. 4,249,584,672.61 3,778,553,414.06
Cash and bank balances China Merchants Group Finance Company Limited 2,289,627,387.58 2,090,078,155.93
Total 6,539,212,060.19 5,868,631,569.99
Antong Holdings 53,165,015.95 8,919,131.23
COSCO Logistics (Zhanjiang) Co., Ltd. 29,029,735.45 1,505,114.97
Chu Kong River Trade Terminal Co., Ltd. 7,348,970.49 2,357,207.03
Sinotrans Container Lines Co., Ltd. 5,610,442.15 2,763,240.00
Yiu Lian Dockyards (Shekou) Limited 4,850,437.88 1,077,910.40
China Marine Shipping Agency Guangdong Co., Ltd. 3,117,999.07 2,765,338.38
China Merchants International Shipping Agency (Shenzhen)
2,831,343.21 1,750,277.36
Co., Ltd.
China Ocean Shipping Agency Shenzhen Co., Ltd. 2,257,095.25 2,035,495.50
Accounts receivable
Great Horn Development Company FZCo 2,167,471.00 2,162,941.76
Dalian Container Terminal Co., Ltd. 2,157,150.00 1,725,150.00
Qingdao Qianwan United Container Terminal Co., Ltd. 1,914,390.00 1,188,600.01
Qingdao Qianwan West Port United Wharf Co., Ltd. 1,312,057.08 1,207,750.72
Nanshan Group and its subsidiaries 1,302,067.37 1,214,194.85
Sinoway Shipping Ltd. 837,900.86 755,606.02
Sinotrans (HK) Shipping Limited 761,515.93 682,942.44
Other related parties 7,762,452.50 3,376,539.66
Total 126,426,044.19 35,487,440.33
- 168 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Item Related party 30/06/2024 31/12/2023
Nanshan Group 277,605,000.00 203,577,000.00
Liaoning Port 51,863,401.35 -
Qingdao Port International Co., Ltd 44,888,121.12 -
Merchants Port City 38,809,044.77 38,809,044.77
Dalian Port Logistics Network Co., Ltd. 30,605,256.76 30,605,256.76
Dividends receivable Yingkou Gangxin Technology Co., Ltd. 23,881,213.75 23,881,213.75
COSCO Logistics (Zhanjiang) Co., Ltd. 13,449,001.16 13,449,001.16
Tin-Can Island Container Terminal Ltd 6,901,587.25 21,960,680.22
Tianjin Port Container Terminal Co., Ltd 5,354,125.89 -
China Ocean Shipping Agency Shenzhen Co. Ltd. - 11,232,000.00
Total 493,356,752.05 343,514,196.66
Chu Kong River Trade Terminal Co., Ltd. 36,822,042.40 36,575,039.20
Shenzhen Nanyou (Holdings) Ltd. 30,639,652.92 30,639,652.92
Port de Djibouti S.A. 25,106,812.50 24,966,517.50
Shenzhen Qianhai Shekou Free Trade Investment Development Co.
6,310,00000 6,31000000
Ltd.
EuroAsia Dockyard Enterprise and Development Limited 1,542,24143 1,53189604
Other receivables China Merchants Commercial Property Investment (Shenzhen) Co.,
1,166,40840 1,16640840
Ltd.
Nanshan Group and its subsidiaries 94924855 1,18956610
Tin-Can Island Container Terminal Ltd 45066916 1,32056203
China Merchants Port Investment Development Company Limited - 2,83018869
Other related parties 3,275,77442 2,14297551
Total 106,262,849.78 108,672,806.39
Other related parties 87886428 25008422
Prepayments
Total 87886428 25008422
Terminal Link SAS 13,488,695.98 7,46884983
China Merchants Finance Lease (Tianjin) Co., Ltd. 71471505 3,80000000
Non-current assets due
China Merchants Finance Lease (Shanghai) Co., Ltd. - 6,20000000
within one year
Port of Newcastle and its subsidiaries - -
Total 14,203,411.03 17,468,849.83
Port of Newcastle and its subsidiaries 937,157,345.83 921,402,438.00
Terminal Link SAS 199,389,422.56 204,299,511.52
Tianjin Haitian Bonded Logistics Co., Ltd. 34,300,000.00 34,300,000.00
Long-term receivables Zhoushan Blue Ocean Investment Co., Ltd. 16906240 4,99698939
China Merchants Finance Lease (Tianjin) Co., Ltd. 70429013 69587601
China Merchants Finance Lease (Shanghai) Co., Ltd. - -
Total 1,171,720,120.92 1,165,694,814.92
- 169 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Item Related party 30/06/2024 31/12/2023
China Merchants Bank Co., Ltd. 2,341,646,244.46 1,150,880,891.67
Short-term borrowings China Merchants Group Finance Company Limited 323,752,652.75 200,176,534.70
Total 2,665,398,897.21 1,351,057,426.37
Antong Holdings 25,446,355.98 20,360,897.30
Khor Ambado FZCo 14,245,000.00 22,639,585.37
Nanshan Group and its subsidiaries 9,436,619.08 5,968,662.37
Dalian Port Logistics Network Co., Ltd. 7,983,797.55 8,355,644.80
Shenzhen Bay Electricity Industry Co., Ltd. 4,949,134.06 5,394,353.74
China Merchants Port and Shipping Digital Technology
2,905,000.00 2,905,000.00
(Liaoning) Co., Ltd.
Dalian Ganglong Technology Co., Ltd 2,739,450.00 2,739,450.00
Dalian Port Logistics Technology Co., Ltd 2,458,830.90 17,607,121.00
Accounts payable EUROASIA DOCKYARD ENTERPRISE AND
1,812,456.38 2,413,589.56
DEVELOPMENT LIMITED
Qingdao Qianwan West Port United Terminal Co., Ltd 1,727,972.60 4,066,438.84
YIU LIAN DOCKYARDS LIMITED 1,604,222.16 1,135,115.31
Globex e-Services Co., Ltd. 749,269.39 749,269.39
China Marine Shipping Agency,Shenzhen Company Limited 441,382.30 259,966.50
Shenzhen Zhaoshang Daojiahui Technology Co., Ltd 251,311.75 1,781,775.33
China Merchants Investment Development Company Limited - 1,649,069.28
Other related parties 11,372,219.07 2,012,040.39
Total 88,123,021.22 100,037,979.18
China Merchants Port Investment Development Company
9,569,345.44 5,358,074.44
Limited
Qingdao Wutong Century Supply Chain Co., Ltd 285,725.30 196,301.30
Receipts in advance
Qingdao Qianwan United Container Terminal Co., Ltd. 1,524,657.17 -
Other related parties 80,520.00 -
Total 11,460,247.91 5,554,375.74
Qingdao Sinotrans Logistics Co., Ltd 433,604.00 440,727.56
Qingdao Sinotrans Supply Chain Management Co., Ltd 428,055.84 1,464,429.12
COSCO Logistics (Zhanjiang) Co., Ltd. 181,518.00 4,552,313.24
Qingdao Qianwan United Container Terminal Co., Ltd. 141,477.60 -
China Merchants Port Investment Development Company
Contract liabilities - 660,943.40
Limited
China Ocean Shipping Agency Shenzhen Co. Ltd. - 633,024.00
Shenzhen Baohong Technology Co., Ltd - 459,049.11
Other related parties 851,540.73 1,021,090.85
Total 2,036,196.17 9,231,577.28
China Merchants Port Investment Development Company Limi
666,216,215.84 -
ted
China Merchants Gangtong Development (Shenzhen) Co., Ltd. 215,109,240.00 -
Zhanjiang Infrastructure Construction Investment Group Co.,
95,442,231.24 -
Ltd.
China Merchants Zhangzhou Development Zone Co., Ltd 72,734,806.46 77,734,806.46
Broadford Global Limited 32,082,240.64 -
Dividends payable Dalian Port Container 16,160,696.61 16,160,696.61
China Merchants Investment Development (Hong Kong) Co.,
10,336,739.21 -
Ltd
Jifa Logistics 9,575,104.42 9,575,104.42
Yingkou Port Group 5,372,456.78 5,372,456.78
Orienture Holdings Company Limited 1,313,769.60 -
Yiu Lian Dockyards Limited - 2,334,150.00
Total 1,124,343,500.80 111,177,214.27
Lac Assal Investment Holding Company Limited 64,672,313.88 64,310,900.95
China Merchants Real Estate (Shenzhen) Co., Ltd. 10,079,369.00 10,079,369.00
Other payables China Merchants Port Investment Development Company
3,520,150.40 -
Limited
China Merchants Shekou Industrial Zone Holding Co., Ltd 3,210,410.34 -
- 170 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties - continued
Item Related party 30/06/2024 31/12/2023
CIAO International Limited 2,999,920.00 -
Nanshan Group and its subsidiaries 2,289,786.71 -
Terminal Link SAS 2,117,803.23 10,423,425.44
China Merchants Commercial Property Investment (Shenzhen)
2,109,363.08 5,000,000.03
Co., Ltd.
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1,732,221.26 1,690,130.78
Qingdao Qianwan United Container Terminal Co., Ltd. 1,528,057.17 -
Hoi Tung (Shanghai) Company Limited 1,093,799.95 966,785.34
Chu Kong River Trade Terminal Co., Ltd. 996,194.99 989,512.49
Other payables
China Traffic Import and Export Co., Ltd. 906,442.38 1,055,975.76
China Merchants International Cold Chain (Shenzhen)
757,976.00 757,976.00
Company Limited
Shenzhen Baohong Technology Co., Ltd. 749,269.39 749,269.39
China Marine Shipping Agency Guangdong Co., Ltd. 602,850.00 300,950.00
China Merchant Food (China) Co., Ltd. 314,905.36 1,069,017.00
Antong Holdings 62,532.00 4,743,266.37
Other related parties 7,265,053.94 5,656,468.52
Total 107,008,419.08 107,793,047.07
China Merchants Group Finance Company Limited 135,654,321.71 288,071,994.22
China Merchants Finance Lease (Tianjin) Co., Ltd. 41,988,137.24 7,548,329.72
China Merchants Bank Co., Ltd. 38,974,631.93 199,326,195.84
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 33,165,141.91 35,719,107.95
Nanshan Group and its subsidiaries 32,033,074.79 63,331,699.85
Non-current liabilities China Merchants Finance Lease (Shanghai) Co., Ltd. 25,129,932.71 76,461,173.65
due within one year China Merchants Commercial Property Investment (Shenzhen)
3,235,085.23 6,396,788.04
Co., Ltd.
China Merchants Tongshang Finance Lease Co., Ltd. 1,464,440.48 -
China Merchants International Cold Chain (Shenzhen)
832,690.87 375,528.56
Company Limited
Total 312,477,456.87 677,230,817.83
China Merchants Group Finance Company Limited 1,345,500,000.00 158,000,000.00
Long-term borrowings China Merchants Bank Co., Ltd. 810,945,334.79 721,624,592.13
Total 2,156,445,334.79 879,624,592.13
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 46,849,163.22 62,185,360.58
Shenzhen Wanhai Building Management Co., Ltd. 2,819,637.93 -
China Merchants International Cold Chain (Shenzhen)
Lease liabilities 1,585,424.25 -
Company Limited
Other related parties 2,972,333.19 1,070,904.61
Total 54,226,558.59 63,256,265.19
Long-term payables China Merchants Finance Lease (Tianjin) Co., Ltd. 35,941,894.66 33,905,690.32
(XVI) SHARE-BASED PAYMENTS
1. Equity instruments
Type of Granted in the current Exercised in the current Unlocked in the current Lapsed in the current
targets period period period period
granted Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - 1,207,820.00 19,264,245.60 3,797,080.00 60,460,796.40 - -
(XVI) SHARE-BASED PAYMENTS - continued
- 171 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
1. Equity instruments - continued
Outstanding stock option or other equity instruments at the end of current period
Outstanding stock option at the end of current period
Type of targets granted
Range of exercise prices Remaining term of contract
Management RMB 13.83 to RMB 16.08 31 months
2. Equity-settled share-based payments
The method used to determine the fair value of equity instruments The cost of granted stock options was estimated
at the grant date using the Black Scholes Model.
At each balance sheet date in the vesting period,
the best estimate was made and the estimated
number of exercisable equity instruments was
The basis for determining the number of exercisable equity instruments
modified according to the latest changes in the
number of employees who can exercise the rights
and other subsequent information.
(The 1st batch) Criteria of exercising in the third
Reasons for the significant difference between the estimates vesting period are satisfied
of the current period and the estimates of prior year (Reserved portion) Criteria of exercising in the
second vesting period are satisfied
The aggregate amount of equity-settled share-based payments that is
6,909,356.80
included in capital reserve
Pursuant to the Official Reply on the Implementation of the Stock Option Incentive Plan of China
Merchants Port Group Co., Ltd. by State-owned Assets Supervision and Administration
Commission of the State Council (No. 748 [2019], SASAC), which was deliberated and approved
by the 1st Extraordinary General Meeting of the Company in 2020 on 3 February 2020, the Company
implemented a stock option plan with effect from 3 February 2020 to grant 238 incentive recipients
17,198,000 stock options with an exercise price of RMB17.80 per share. With a lockup period of
24 months from the grant date, the stock options are exercisable upon expiry of the 24-month lockup
period in the premise that the vesting conditions are satisfied. The stock 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) and the remaining 30% for the third batch (after 48 months but within 84 months
subsequent to the grant date). Each stock option entitles the holder to subscribe for one 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. With a lockup period of 24 months from the grant date, the stock options are
exercisable upon expiry of the 24-month lockup period in the premise that the vesting conditions
are satisfied. The stock 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 stock option
entitles the holder to subscribe for one ordinary share of the Company.
- 172 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments - continued
According to Article 32 of Stock Option Incentive Plan, since the grant date of the stock option, if
the Company distributes dividends prior to the exercise of the option, the exercise price shall be
adjusted accordingly. Therefore, the Company uniformly adjusted the exercise price from
RMB17.80 per share to 17.34 per share in respect of the first batch of stock option granted under
the stock option incentive plan (phase I) on 30 January 2021; the Company uniformly adjusted the
exercise price from RMB 17.34 per share to 16.96 per share in respect of the first batch of stock
option granted under the stock option incentive plan (phase I), and the exercise price of the reserved
portion of stock option from RMB 15.09 per share to 14.71 per share on 29 January 2022; the
Company uniformly adjusted the exercise price from RMB 16.96 per share to 16.53 per share in
respect of the first batch of stock option granted under the stock option incentive plan (phase I), and
the exercise price of the reserved portion of stock option from RMB 14.71 per share to 14.28 per
share on 20 January 2023; the Company uniformly adjusted the exercise price from RMB 16.53 per
share to 16.08 per share in respect of the first batch of stock option granted under the stock option
incentive plan (phase I), and the exercise price of the reserved portion of stock option from RMB
14.28 per share to 13.83 per share on 15 January 2024.
As at the date on which the financial statements are issued, 195 incentive targets who can exercise
the rights for the third vesting period of the stock option (1st batch) under the stock option incentive
plan (phase I) included: (1) 190 incentive targets who met the designated grades (above grade C) in
the performance assessment, holding 100% of the stock option (totalling 3,471,600 shares) for the
third vesting period of the stock option (1st batch) under the stock option incentive plan (phase I) of
the Company and satisfying the criteria of exercise; and (2) 5 incentive targets who met the D grades
in the performance assessment, holding 80% of the stock option (totalling 60,480 shares) for the
third vesting period of the stock option (1st batch) under the stock option incentive plan (phase I) of
the Company and satisfying the criteria of exercise. The number of exercisable stock options in the
third vesting period of stock option incentive plan (phase I) (the first batch of grants) is 35,320,800.
The second vesting period of the stock option (reserved portion) under the stock option incentive
plan (phase I) targets to total 3 persons who can exercise the rights. The 3 incentive targets have
met the designated grades in the performance assessment, and 100% of stock option for the second
vesting period of the stock option (reserved portion) under the stock option incentive plan (phase I)
of the Company held by them have satisfied the criteria of exercise, granting 265,000 shares of
exercisable stock option for the second vesting period of the stock option (reserved portion) under
the stock option incentive plan (phase I).
3. Share-based payment expenses in the current period
Type of targets granted Equity-settled share-based payment expenses
Management 264,766.44
- 173 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item 30/06/2024 31/12/2023
Commitments that have been entered into but have not been
recognized in the financial statements
- Commitment to make contributions to the investees 34,206,848.59 467,604,906.76
- Commitment to acquire and construct long-term assets 3,009,394,849.71 2,407,538,867.35
Total 3,043,601,698.30 2,875,143,774.11
2. Contingencies
Item 30/06/2024 31/12/2023
Contingent liabilities brought by external litigations (Note 1) 892,029,441.27 946,218,359.48
Guarantee for borrowings of related parties (Note 2) 345,605,968.99 347,437,758.18
Total 1,237,635,410.26 1,293,656,117.66
Note 1: This mainly represents the significant contingent liabilities arising from the litigations
between TCP and its subsidiaries and local tax authority, employee or former employee
of TCP and its subsidiaries in Brazil. According to the latest estimates of the Group's
management, the possible compensation is RMB 892,029,441.27, 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 needs 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 may require the Zhanjiang Port for compensation.
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 Company believed that the possibility
of loss was quite low, therefore, no provisions were made for the above pending litigation.
- 174 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies - continued
Note 2: As at 30 June 2024, the guarantees provided by the Group for related parties are detailed
in Note XV 5(3).
As at 30 June 2024, the directors of the Group evaluated the default risks of related
companies on the above-mentioned loan financing and other liabilities, and believed that
the risks were not significant and the possibility of guaranteed payments was very small.
Except for the above-mentioned contingencies, as at 30 June 2024, the Group had no other major
guarantees and other contingencies that need to be explained.
(XVIII)EVENTS AFTER THE BALANCE SHEET
As at 30 June 2024, the Company had no events after the balance sheet date.
(XIX) 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 operation of the Group in terms of business and locations.
Individual operating segments for which discrete financial information is available are identified
by the CODM and are operated by their respective management teams. These individual operating
segments are aggregated in arriving at the reporting segments of the Group.
From business and location perspectives, the management assesses the performance of the Group's
business operations including ports operation, bonded logistics operation and other operations.
Ports operation
Ports operation includes container terminal operation, bulk and general cargo terminal operation
operated by the Group and its associates and joint ventures.
- 175 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(1) Basis for determining reporting segments and accounting policies - continued
Ports operation - continued
The Group's ports operation is presented as follows:
(a) Mainland China, Hong Kong and Taiwan
Pearl River Delta
Yangtze River Delta
Bohai Rim
Others
(b) Other locations outside of Mainland China, Hong Kong and Taiwan
Bonded logistics operation
Bonded logistics operation includes logistics park operation, ports transportation and airport cargo
handling operated by the Group and its associates and joint ventures.
Other operations
Other operations mainly include property development and investment and logistics business
operated by the Group's associates, property investment operated by the Group and corporate
function.
Each of the segments under ports operation includes the operations of a number of ports in various
locations within one geographic location. For the purpose of segment reporting, these individual
operating segments have been aggregated into reportable segments on geographic basis in order to
present a more systematic and structured segment information. To give details of each of the
operating segments, in the opinion of the directors of the Company, would result in particulars of
excessive length.
Bonded logistics operation and other operations include a number of different operations, each of
which is considered as a separate but insignificant operating segment by the CODM. For segment
reporting, these individual operating segments have been aggregated according to the nature of their
operations to give rise to more meaningful presentation.
There are no material sales or other transactions between the segments.
The revenue from a major customer of ports operation amounts to RMB 1,105,049,581.67,
representing 13.86% (from 1 January to 30 June 2023: 10.08%) of the Group's operating income
for the period from 1 January to 30 June 2024.
- 176 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments
Segment financial information for the period from 1 January to 30 June 2024 is as follows:
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics Unappropriated
Item Others Total
Yangtze River Other areas Sub-total operation amount
Pearl River Delta Bohai Rim Others
Delta
Operating income 3,219,936,922.80 1,029,435.60 39,308,697.49 1,714,301,249.69 2,644,011,210.95 7,618,587,516.53 265,131,369.96 91,474,197.15 - 7,975,193,083.64
Operating cost 1,685,168,257.93 5,842,912.70 33,142,932.27 1,253,584,489.47 1,157,898,462.56 4,135,637,054.93 142,996,868.88 112,235,371.15 - 4,390,869,294.96
Segment operating profit (losses are marked with
1,534,768,664.87 -4,813,477.10 6,165,765.22 460,716,760.22 1,486,112,748.39 3,482,950,461.60 122,134,501.08 -20,761,174.00 - 3,584,323,788.68
"-")
Taxes and surcharges 17,244,195.32 535,050.52 821,769.63 25,037,360.24 94,328,417.32 137,966,793.03 13,249,160.22 12,119,726.59 247,808.92 163,583,488.76
Administrative expense 196,933,278.40 1,612,493.40 4,359,371.33 248,105,996.41 126,398,428.69 577,409,568.23 33,030,856.52 549,225.95 197,189,105.48 808,178,756.18
R&D expenses 75,295,632.42 - - 9,437,328.88 - 84,732,961.30 - - - 84,732,961.30
Financial expenses 26,926,418.03 3,725,670.57 -94,890.31 38,170,354.37 134,100,453.57 202,828,006.23 -3,209,663.68 7,731,837.05 788,862,594.21 996,212,773.81
Other income (losses are marked with "-") 82,479,124.76 612,942.55 26,641.94 14,188,876.02 - 97,307,585.27 10,880,170.75 208,451.85 - 108,396,207.87
Investment income (losses are marked with "-") 43,658,873.09 2,875,237,848.06 202,338,251.96 9,197,560.90 298,146,789.22 3,428,579,323.23 20,421,144.80 -27,371,992.96 16,221,423.39 3,437,849,898.46
Gains from changes in fair value (losses are
20,980,499.73 - 443,376,957.50 101,333.89 - 464,458,791.12 - 206,159.78 1,187,945.21 465,852,896.11
marked with “-”)
Gains from impairment of credit (losses are
-214,532.10 - - -1,286,581.85 316,819,722.85 315,318,608.90 407,893.03 - - 315,726,501.93
marked with "-")
Gains from impairment of assets (losses are
- - - - - - - - - -
marked with "-")
Gains from disposal of assets (losses are marked
1,147,053.63 -4,304.65 -110,309.93 -2,124.02 11,603.21 1,041,918.24 -155,995.83 - -1,454.23 884,468.18
with "-")
Operating profit (losses are marked with "-") 1,366,420,159.81 2,865,159,794.37 646,711,056.04 162,164,785.26 1,746,263,564.09 6,786,719,359.57 110,617,360.77 -68,119,344.92 -968,891,594.24 5,860,325,781.18
- 177 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for the period from 1 January to 30 June 2024 is as follows: - continued
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics
Item Others Unappropriated amount Total
Yangtze River Other areas Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 8,082,316.61 - - 4,261,287.73 1,978,420.68 14,322,025.02 42,240.83 49,439.70 3,124,729.18 17,538,434.73
Non-operating expenses 1,279,860.60 - - 1,371,370.31 30,938,243.78 33,589,474.69 18,742.91 8,251.63 83,158.86 33,699,628.09
Total profit (Losses are marked with "-") 1,373,222,615.82 2,865,159,794.37 646,711,056.04 165,054,702.68 1,717,303,740.99 6,767,451,909.90 110,640,858.69 -68,078,156.85 -965,850,023.92 5,844,164,587.82
Income tax expenses 292,334,020.67 102,522,933.56 115,122,672.41 39,662,238.21 233,122,011.23 782,763,876.08 16,402,878.58 7,906,087.89 -2,553,964.04 804,518,878.51
Net profit (Losses are marked with "-") 1,080,888,595.15 2,762,636,860.81 531,588,383.63 125,392,464.47 1,484,181,729.76 5,984,688,033.82 94,237,980.11 -75,984,244.74 -963,296,059.88 5,039,645,709.31
Segment assets 25,159,648,144.61 59,053,667,162.30 10,290,478,652.54 27,605,130,841.79 43,895,539,823.77 166,004,464,625.01 4,385,458,318.06 19,461,526,772.48 10,893,681,899.76 200,745,131,615.31
Total assets in the financial statements 200,745,131,615.31
Segment liabilities 8,054,756,474.59 1,342,738,444.87 168,738,974.83 6,396,356,667.72 8,043,590,852.58 24,006,181,414.59 548,164,250.29 582,804,155.89 48,634,223,695.33 73,771,373,516.10
Total liabilities in the financial statements 73,771,373,516.10
Supplementary information:
Depreciation and amortization 649,214,097.15 4,429,200.35 441,032.34 426,072,123.12 445,805,837.98 1,525,962,290.94 52,670,505.19 12,591,960.02 12,078,684.43 1,603,303,440.58
Interest income 16,953,957.00 285,724.46 304,556.64 8,849,103.13 97,732,626.85 124,125,968.08 2,947,476.59 478,816.47 112,605,281.64 240,157,542.78
Interest expense 44,968,925.36 4,005,717.95 - 46,286,600.74 158,527,211.05 253,788,455.10 4,228,352.92 6,619,216.67 883,829,107.75 1,148,465,132.44
Investment income from
long-term equity investments
27,015,306.72 2,875,237,848.06 157,499,358.35 6,796,818.08 298,146,789.23 3,364,696,120.44 20,421,144.80 -27,371,992.96 - 3,357,745,272.28
under equity method (Losses are marked
with "-")
Long-term equity investments
1,778,239,596.88 57,238,687,511.41 8,854,531,448.95 1,714,256,379.55 12,321,801,119.52 81,907,516,056.31 1,712,129,148.10 14,359,020,060.75 - 97,978,665,265.16
under equity method
Non-current assets other than
18,020,380,466.47 394,157,415.12 14,385,806.35 19,882,238,102.80 25,993,279,320.59 64,304,441,111.33 2,367,078,133.19 4,707,807,383.48 1,182,623,518.60 72,561,950,146.60
long-term equity investments
- 178 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for the period from 1 January to 30 June 2023 is as follows:
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics Unappropriated
Item Others Total
Yangtze River Other areas Sub-total operation amount
Pearl River Delta Bohai Rim Others
Delta
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 (Losses
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
are marked with "-")
Adjustments:
Taxes and surcharges 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 from changes in fair value
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
(Losses are marked with "-")
Gains from impairment of credit
-647,077.22 - - 791,105.35 -7,855,915.77 -7,711,887.64 416,266.34 - - -7,295,621.30
(Losses are marked with "-")
Gains from impairment of assets 65,324.84 - - - - 65,324.84 - - - 65,324.84
Gains from disposal of assets
656,081.83 - -7,362.22 -15,292.67 3,645.68 637,072.62 -285,026.87 - - 352,045.75
(Losses are marked with "-")
Operating profit (Losses are
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
marked with "-")
- 179 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial 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 Unappropriated
Item Others Total
Yangtze River Other areas Sub-total operation amount
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 expenses 5,761,171.09 213,965.02 - 3,056,124.97 1,047,742.25 10,079,003.33 - - - 10,079,003.33
Total profit (Losses are marked
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
with "-")
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 (Losses are marked
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
with "-")
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 amortization 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
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 expense 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 equity investments 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
under equity method
Long-term equity investments
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
under equity method
Non-current assets other than
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
long-term equity investments
- 180 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
The Group's total revenue from external transactions in Mainland China and other countries and
regions, and total non-current assets other than financial assets and deferred tax assets located in
Mainland China and other countries and regions are presented as follows:
Revenue from external transactions Current period Prior period
Mainland China, Hong Kong and Taiwan 5,310,331,280.78 5,624,973,995.70
Pearl River Delta 3,479,997,279.58 3,354,702,296.86
Yangtze River Delta 1,029,435.60 454,417,897.17
Bohai Rim 115,003,315.91 108,287,895.74
Others 1,714,301,249.69 1,707,565,905.93
Other areas 2,664,861,802.86 2,170,287,575.29
Total 7,975,193,083.64 7,795,261,570.99
Total non-current assets 30/06/2024 31/12/2023
Mainland China, Hong Kong and Taiwan 129,668,458,692.32 128,859,143,257.19
Pearl River Delta 40,485,165,746.05 40,390,524,565.51
Yangtze River Delta 57,632,844,926.53 56,242,527,381.24
Bohai Rim 9,364,675,205.66 9,297,697,381.31
Others 22,185,772,814.08 22,928,393,929.13
Other areas 40,872,156,719.44 40,908,377,486.15
Total 170,540,615,411.76 169,767,520,743.34
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
2,246,634,683.28, accounting for 28.17% of the Group's operating income.
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Other receivables
1.1 Summary of other receivables
Item 30/06/2024 31/12/2023
Dividends receivable 210,443,391.92 167,092,526.14
Other receivables 2,481,619,434.16 1,575,369,144.18
Total 2,692,062,826.08 1,742,461,670.32
- 181 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.2 Dividends receivable
(1) Presentation of dividends receivable
Investee 30/06/2024 31/12/2023
Wharf Holdings Hong Kong 147,680,363.88 147,680,363.88
Zhanjiang Port 48,860,154.24 -
CM Port 6,910,683.41 -
Chiwan Shipping (Hong Kong) Limited 3,414,890.39 3,205,094.23
Sanya Merchants Port Development Co., Ltd 3,360,900.00 -
Shenzhen Petrochemical Industry (Group) Co., Ltd. 216,400.00 216,400.00
China Ocean Shipping Agency (Shenzhen) Co., Ltd. - 11,232,000.00
CM International Tech - 4,758,668.03
Total 210,443,391.92 167,092,526.14
Less: Provision for credit loss - -
Carrying amount 210,443,391.92 167,092,526.14
Significant dividends receivable aged more than 1 year
Impaired or not and
Reason for
Item 30/06/2024 31/12/2023 the determination
outstanding
basis
In processing and
Wharf Holdings Hong
147,680,363.88 147,680,363.88 expected to be No
Kong
recovered in 2024
Total 147,680,363.88 147,680,363.88
- 182 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.3 Other receivables
(1) Aging analysis of other receivables
30/06/2024
Aging Provision for Proportion of
Other receivables
credit loss provision (%)
Within 1 year 2,462,689,769.22 - -
1 to 2 years 16,133,749.47 - -
2 to 3 years 2,467,600.00 - -
More than 3 years 711,772.07 383,456.60 53.87
Total 2,482,002,890.76 383,456.60
(2) Disclosure of other receivables by nature
Item 30/06/2024 31/12/2023
Amounts due from related parties 2,446,538,790.17 1,553,447,353.90
Advances 4,649,277.34 4,965,337.56
Others 30,814,823.25 17,339,909.32
Total 2,482,002,890.76 1,575,752,600.78
Less: Provision for credit loss 383,456.60 383,456.60
Carrying amount 2,481,619,434.16 1,575,369,144.18
(3) Provision for credit loss of other receivables
30/06/2024 31/12/2023
Expected Lifetime Lifetime Lifetime Lifetime
Credit rating credit loss ECL (not ECL ECL ECL
12-month ECL Total 12-month ECL Total
rate (%) credit- (credit- (not credit- (credit-
impaired) impaired) impaired) impaired)
A 0.00-0.10 2,481,619,434.16 - - 2,481,619,434.16 1,575,369,144.18 - - 1,575,369,144.18
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
Gross carrying
2,481,619,434.16 - 383,456.60 2,482,002,890.76 1,575,369,144.18 - 383,456.60 1,575,752,600.78
amount
Provision for
- - 383,456.60 383,456.60 - - 383,456.60 383,456.60
credit loss
Carrying
2,481,619,434.16 - - 2,481,619,434.16 1,575,369,144.18 - - 1,575,369,144.18
amount
- 183 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.3 Other receivables - continued
(4) Provision, recovery and reversal of credit loss of other receivables
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
At 1 January 2024 - - 383,456.60 383,456.60
Balance of other receivables
at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period - - - -
Reversal for the period - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
At 30 June 2024 - - 383,456.60 383,456.60
(5) Details of bad debt provision
Changes for the period
Effect of
Charge-off
Category 31/12/2023 Recovery or changes in Other 30/06/2024
Provision or write-
reversal the scope of changes
off
consolidation
Bad debt provision
assessed on an 383,456.60 - - - - - 383,456.60
individual basis
Bad debt provision
assessed on a portfolio - - - - - - -
basis
Total 383,456.60 - - - - - 383,456.60
(6) The Company has no recovery or reversal of significant provision for credit loss in the
current period.
- 184 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
(7) The Group has no other receivables written off during the period.
(8) The top five balances of other receivables at the end of the period classified by debtor
Proportion Closing
Relationship to total balance of
Name of entity with the Nature Closing balance Aging other provision
Company receivables for credit
(%) loss
Loan to Within 1 year,
Wharf Holdings Hong Kong Subsidiary 2,438,029,366.73 98.23 -
related parties 1-2 years
Shenzhen Chiwan Port Lease Within 1 year,
Subsidiary 22,784,877.90 0.92 -
Development Co., Ltd payment 1-2 years
Loan to
Shunkong Port Subsidiary 8,509,423.44 1-2 years 0.34 -
related parties
China Securities Depository and
Clearing Corporation Limited Third party Others 3,996,917.82 Within 1 year 0.16
Shenzhen Branch
CM International Tech Subsidiary Advances 2,467,600.00 2-3 years 0.10 -
Total 2,475,788,185.89 99.75 -
- 185 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Long-term equity investments
(1) Breakdown of long-term equity investments
Changes for the period
Reconciliation Closing balance of
Investment income Cash dividends
Investee 01/01/2024 Investment of other Other equity Provision for 30/06/2024 provision for
Investment increase under equity or profit Others
decrease comprehensive movements impairment impairment
method declared
income
I. Subsidiaries
Shenzhen Chiwan International Freight Agency Co.,
5,500,000.00 - - - - - - - - 5,500,000.00 -
Ltd.
Shenzhen Chiwan Harbor Container Co. Ltd. 250,920,000.00 - - - - - - - - 250,920,000.00 -
Shenzhen Chiwan Port Development Co., Ltd. 206,283,811.09 - - - - - - - - 206,283,811.09 -
Wharf Holdings Hong Kong 1,070,000.00 - - - - - - - - 1,070,000.00 -
Shenzhen Chiwan Tugboat Co., Ltd. 24,000,000.00 - - - - - - - - 24,000,000.00 -
Chiwan Container Terminal Co., Ltd. 421,023,199.85 - - - - - - - - 421,023,199.85 -
Dongguan Shenchiwan Port Affairs Co., Ltd. 186,525,000.00 - - - - - - - - 186,525,000.00 -
Dongguan Shenchiwan Wharf Co., Ltd. 175,000,000.00 - - - - - - - - 175,000,000.00 -
Chiwan Shipping (Hong Kong) Limited 1,051,789.43 - - - - - - - - 1,051,789.43 -
CM Port (Note 1) 181,316,161.41 163,260.82 - - - - - - - 181,479,422.23 -
Zhoushan RoRo 106,104,786.00 - - - - - - - - 106,104,786.00 43,605,014.00
Zhanjiang Port 3,381,825,528.52 - - - - - - - - 3,381,825,528.52 -
CM International Tech 130,462,575.02 - - - - - - - - 130,462,575.02 -
Sanya Merchants Port Development Co., Ltd. 2,040,000.00 - - - - - - - - 2,040,000.00 -
Ports Development (Hong Kong) Limited 29,203,045,326.23 - - - - - - - - 29,203,045,326.23 -
Shunkong Port (Note 2) 194,673,400.00 10,408,200.00 - - - - - - - 205,081,600.00 -
Yide Port 131,866,700.00 - - - - - - - - 131,866,700.00 -
Sub-total 34,602,708,277.55 10,571,460.82 - - - - - - - 34,613,279,738.37 43,605,014.00
II. Associates
Ningbo Zhoushan 16,813,664,839.73 - - 471,712,057.26 11,720,178.46 2,147,898.58 -371,449,726.01 - - 16,927,795,248.02 -
China Merchants Northeast Asia Development &
1,018,534,351.56 - - 245,114.78 - 152.62 - - - 1,018,779,618.96 -
Investment Co., Ltd.
China Merchants Bonded Logistics Co., Ltd. 382,205,734.47 - - 19,688,000.00 - - -47,284,052.37 - - 354,609,682.10 -
Antong Holdings 922,332,364.58 - - 10,238,052.17 - - - - - 932,570,416.75 -
Sub-total 19,136,737,290.34 - - 501,883,224.21 11,720,178.46 2,148,051.20 -418,733,778.38 - - 19,233,754,965.83 -
III. Joint ventures
Yantai Port Group Laizhou Port Co., Ltd. 802,527,184.43 - - 3,022,770.83 - - - - - 805,549,955.26 -
Fujian Zhaohang Logistics Management Partnership
614,726,959.48 - - 5,693,333.33 - - - - - 620,420,292.81 -
(Limited Partnership)
Shenzhen Gangteng Internet Technology Co., Ltd. 11,918,626.99 - - -1,069,655.98 - - - - - 10,848,971.01 -
Sub-total 1,429,172,770.90 - - 7,646,448.18 - - - - - 1,436,819,219.08 -
Total 55,168,618,338.79 10,571,460.82 - 509,529,672.39 11,720,178.46 2,148,051.20 -418,733,778.38 - - 55,283,853,923.28 43,605,014.00
- 186 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
2. Long-term equity investments - continued
(1) Details of long-term equity investments - continued
Note 1: Details are set out in Note (XI) 1. (1).
Note 2: In December 2023, the Company and Guangdong Shunkong City Investment Real Estate
Co. Ltd. entered into a capital increase agreement for Shunkong Port, whereby the two
parties agreed to increase the capital by RMB 153,823,600.00 together in accordance
with their respective shareholding ratios of 51% and 49%, of which the Company
contributed RMB 78,450,000.00. According to the capital increase agreement, Pursuant
to the Capital Increase Agreement the Company paid $33,110,200.00 for the Capital
Increase by 31 December 2023 and as at 30 June 2024, $10,408,200.00 for the Capital
Increase had been paid and the remaining $34,931,600.00 had not been paid. The
shareholding ratio of the two investors remained unchanged after the capital increase.
3. Operating income and operating costs
Current period Prior period
Item
Income Cost Income Cost
Principal operation - - - -
Other operations 8,997,504.49 1,869,721.92 8,968,995.20 1,843,205.76
Total 8,997,504.49 1,869,721.92 8,968,995.20 1,843,205.76
- 187 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
(Unless otherwise specified, the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
4. Investment income
(1) Details of investment income
Item Current period Prior period
Income from long-term equity investments under equity method 509,529,672.39 513,357,921.90
Income from long-term equity investments under cost method 450,574,980.92 405,401,855.31
Income from held-for-trading financial assets 16,033,315.06 27,032,712.34
Income from investments in other equity instruments - 8,824,500.00
Total 976,137,968.37 954,616,989.55
(2) Income from long-term equity investments under cost method
Investee Current period Prior period Reason for changes
Shenzhen Chiwan Harbor Container Co. Ltd. 143,167,589.81 111,712,423.41 Changes in profit distribution of investee
Chiwan Container Terminal Co., Ltd. 124,392,799.44 149,527,479.94 Changes in profit distribution of investee
Zhanjiang Port 83,925,753.46 36,552,790.18 Changes in profit distribution of investee
Dongguan Shenchiwan Wharf Co., Ltd. 42,509,038.50 33,386,741.74 Changes in profit distribution of investee
Shenzhen Chiwan Tugboat Co., Ltd. 28,061,835.33 20,137,075.44 Changes in profit distribution of investee
Dongguan Shenchiwan Port Affairs Co., Ltd. 13,703,850.69 26,519,896.50 Changes in profit distribution of investee
CM Port 6,875,839.88 8,083,560.00 Changes in profit distribution of investee
Shenzhen Chiwan Port Development Co., Ltd. 3,409,806.03 9,751,697.73 Changes in profit distribution of investee
Sanya Merchants Port Development Co., Ltd. 3,360,900.00 - Changes in profit distribution of investee
Shenzhen Chiwan International Freight Agency
Co., Ltd.
957,771.62 212,854.30 Changes in profit distribution of investee
Chiwan Shipping (Hong Kong) Limited 209,796.16 - Changes in profit distribution of investee
CM International Tech - 9,517,336.07 Changes in profit distribution of investee
Total 450,574,980.92 405,401,855.31
- 188 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
1. BREAKDOWN OF NON-RECURRING PROFIT OR LOSS
Item Amount Remark
Gains or losses on disposal of non-current assets, including those charged off for
which provision for impairment of assets has been made
-2,252,028.44
Government grants recognized in profit or loss (other than grants which are
closely related to the Company's business, in line with the national regulations,
enjoyed under established standards and have a continuous impact
81,086,511.73
on the Company's profit or loss)
Income earned from lending funds to non-financial institutions and recognized
in profit or loss
41,671,453.81
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 asset management -
Losses on assets due to force majeure, e.g., natural disasters -
Gains or losses on debt restructuring -
Lump-sum costs incurred by the enterprises as a result of the discontinuation of
relevant business activities, e.g., expenditure for layoff of employees, etc.
-
Gains from transactions with unfair transaction price -
Net profit or loss of subsidiaries recognized as a result of business combination of
enterprises under common control from the beginning of the period up to the -
business combination date
Gains or losses arising from contingencies other than those related
to normal operating business
-
Gains or losses from changes in fair value of financial assets and financial
liabilities held by non-financial enterprises other than effective hedging operation
relating to the Company's normal operations, and gains or losses from disposal of
465,852,896.11
financial assets and financial liabilities
Reversal of provision for accounts receivable that are tested for
impairment individually
317,235,230.14
Gains or losses on entrusted loans -
Gains or losses from changes in fair value of investment properties that are
subsequently measured using the fair value model
-
One-time effect of adjustments in tax laws and accounting laws and regulations
on profit or loss for the period
-
Custodian fees earned from entrusted operation -
Share-based payment expenses recognized once due to the cancellation or
modification of equity incentive plans
-
For cash-settled share-based payments, gains or losses arising from changes
in fair value of employee benefits payable after the vesting date
-
Other non-operating income or expenses other than above -13,024,696.74
Other profit or loss that meets the definition of non-recurring profit or loss -
Less: Tax effects 124,701,487.41
Effects of minority interests (after tax) 383,185,216.12
Total 382,682,663.08
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2024
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 average EPS
Item
return on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 4.2546% 1.0189 1.0188
Net profit attributable to ordinary shareholders after
3.6153% 0.8658 0.8657
deducting non-recurring profit or loss
