招港B:2023年年度报告摘要（英文版）

China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2024-023

CHINA MERCHANTS PORT GROUP CO. LTD.ANNUAL REPORT 2023 (SUMMARY)

Part I Important Notes

This Summary is based on the full Annual Report of China Merchants Port Group Co. Ltd.(hereinafter referred to as the “Company”). In order for a full understanding of the Company’s

operating results financial position and future development plans investors should carefully read

the aforesaid full text on the media designated by the China Securities Regulatory Commission (the

“CSRC”).This Summary is prepared in both Chinese and English. Should there be any discrepancy between

the two versions the Chinese version shall prevail.All the Company’s directors have attended the Board meeting for the review of this Report and its

summary.Independent auditor’s modified opinion:

□ Applicable √ Not applicable

Board-approved final cash and/or stock dividend plan for the Reporting Period:

√ Applicable □ Not applicable

Bonus issue from capital reserves:

□ Yes √ No

The Board has approved a final dividend plan as follows: based on 2499462404 shares a cash

dividend of RMB5.80 (tax inclusive) per 10 shares is to be distributed to shareholders with no

bonus issue from either profit or capital reserves.Board-approved final cash and/or stock dividend plan for preferred shareholders for the Reporting

Period :

□ Applicable √ Not applicable

Please refer to the full Annual Report for the definitions of the abbreviations mentioned in this

Summary.

1China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

Part II Key Corporate Information

1. Stock Profile

CM Port Group/ 001872/

Stock name Stock code

CM Port Group B 201872

Stock exchange for stock

Shenzhen Stock Exchange

listing

Contact information Board Secretary Securities Representative

Name Li Yubin Hu Jingjing

24/F China Merchants Port 24/F China Merchants Port

Plaza 1 Gongye 3rd Road Plaza 1 Gongye 3rd Road

Address

Zhaoshang Street Nanshan Zhaoshang Street Nanshan

Shenzhen PRC Shenzhen PRC

Fax +86 755 26886666 +86 755 26886666

Tel. +86 755 26828888 +86 755 26828888

Email address Cmpir@cmhk.com Cmpir@cmhk.com

2. Main business of the Company during the Reporting Period

(1) Principal Activities of the Company during the Reporting Period

The Company's core business includes major port business and comprehensive development

business and the nurturing business includes smart technology business and ecological extension

business.The major port business includes containers and bulk cargo handling and warehousing services. The

Company has established a comprehensive port network across the hub locations along coastal

China and the terminals which the Company invested in or invested in and managed are located in

hub locations across Hong Kong Taiwan Shenzhen Ningbo Shanghai Qingdao Tianjin Dalian

Zhangzhou Zhanjiang and Shantou as well as in Asia Africa Europe Oceania South and North

America amongst others. In terms of port investment the Company puts emphasis on its presence

in global major hub locations gateway ports and regions with huge market potential rapid

economic growth and promising development in order to capture investment opportunities in ports

logistics and related infrastructure and further improve the global port network.In terms of the comprehensive development business leveraging on the innovative park business

models and services the Company conducts in-depth exploration of synergy value between ports

and parks and provides customers with diversified value-added services including warehousing

leasing customs clearance division or merger of cargoes documentation services amongst others

in Shenzhen Qianhaiwan Bonded Port Zone Qingdao Qianwan Bonded Port Zone Tianjin

Dongjiang Bonded Port Zone Djibouti International Free Trade Zone Hambantota Industrial Park.In terms of the smart technology business the Company utilizes cutting-edge digital technology to

fully leverage its advantages of big data and rich application scenarios drives its industrial

digitalization and digital industrialization and provides customers with premium port services

through smart port solutions an open platform for smart ports and smart port technology

operations.

2China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

In terms of the ecological extension business which is based on ports as the core and includes port

tugboat service tallying business and engineering supervision and management business the

Company integrates the port ecological service resources promotes the collaboration and

cooperation between the upstream and downstream of the port logistics value chain and lays a key

focus on the openness and sharing of resources to advance the smooth trade development as well as

the efficient operation of the logistics information flow and capital flow of the port service chain

and further help customers reduce costs and increase efficiency.The main business segments of the Company are as follows:

Business

Business content

segments

Port investment:

●The Company puts emphasis on its presence in global major hub

locations gateway ports and regions with huge market potential rapid

economic growth and promising development in order to capture

investment opportunities in ports logistics and related infrastructure

and further improve the global port network.Port operation:

Major port

business ●Containers: The Company provides ship berthing loading and

unloading services to ship companies offers container storage service

to ship companies and cargo owners and provides overhead box

services to tractor companies. The Company also engages in the

businesses of division or merger of cargoes in containers container

Core

leasing and container maintenance;

business

●Bulk cargoes: the Company is engaged in bulk cargo handling and

transportation in port zones as well as storage services in yards. The

major types of cargoes handled include food steel woods and

sandstones.The Company provides various services including warehouse/yard

leasing loading and unloading in warehouses/yards customs

clearance and division or merger of cargoes at terminals intermodal

transportation logistics and transportation and value-added

Comprehensive warehousing services for clients (including logistics companies

development trading companies or cargo owners). Relying on the port-surrounding

business land resources the Company conducts the comprehensive

development to enhance the land value as well as the value of

commercial properties and provides its customers with quality

property leasing and other related services.The Company focuses on smart port solutions an open platform for

smart ports and smart port technology operation accelerates the

Smart

Nurturing industry upgrading from "digitization" to "digital intelligence"

technology

business continues to empower the core businesses of port production

business

management service and ecology and injects new momentum into

port enterprises through digital technology.

3China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

The business is based on ports as the core and includes port tugboat

service tallying business and engineering supervision and

management business and the Company integrates the port ecological

Ecological service resources promotes the collaboration and cooperation between

extension the upstream and downstream of the port logistics value chain and lays

business a key focus on the openness and sharing of resources to advance the

smooth trade development as well as the efficient operation of the

logistics information flow and capital flow of the port service chain

and further help customers reduce costs and increase efficiency.

(2) Development stage and cyclical characteristic of the industry in which the Company

operates and its industry position during the Reporting Period

The Company is a leading global port investor developer and operator. As one of the top port

operators in the world the Company has the resource endowment and unique advantages to build a

world-class comprehensive port service provider. In terms of scale as at the end of the reporting

period the Company has established a relatively complete port network across major hub locations

along coastal China with its presence in 51 ports in 26 countries and regions including Asia Africa

Europe Oceania South and North America. In 2023 according to the statistics of Alphaliner the

Company's equity throughput of containers ranked third among the global port operators in terms of

the growth of top 20 ports in the third quarter. In terms of quality the master terminals controlled by

the Company have occupied various market and regional leading positions continued to promote

ESG construction and strived to create an ESG port benchmark in the industry. In addition

leveraging on the good ground of port technology and based on the CTOS system self-developed by

CMPort the Company has worked out the worldwide first full-case full-time all-regime and

multi-factor traditional container terminal upgrading solution and has built the trade facilitation

platform for the Guangdong-Hong Kong-Macao Greater Bay Area through blockchain technology

which has been extended to 30 terminals to help enhance the trade facilitation level in the Greater

Bay Area. In terms of performance the Company has continually promoted high-quality

development and has been an industry leader in terms of net profit margin and overall labour

productivity and other indicators.

3. Key Financial Information

(1) Key Financial Information of the Past Three Years

Indicate by tick mark whether there is any retrospectively restated datum in the table below.√ Yes □ No

On November 30 2022 the Ministry of Finance promulgated the Interpretation of Accounting

Standards for Business Enterprises No. 16 in which the provision that "deferred income tax related

to assets and liabilities arising from single transactions does not apply to the accounting treatment

of initial recognition exemption" took effect on January 1 2023. The Company has implemented

the above provisions since January 1 2023 adopted the retrospective adjustment method for

accounting treatment and restated the comparative annual financial statements.Unit: RMB

4China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

2023-over-

20222021

2023 2022 change

Before Restated Restated Before Restated

Operating

revenue 15750475780.22 16230489127.55 16230489127.55 -2.96% 15283808174.60 15283808174.60

(RMB)

Net profit

attributabl

e to the

listed 3571800762.16 3337446222.82 3338693816.70 6.98% 2685829204.07 2685752918.53

company’s

shareholde

rs (RMB)

Net profit

attributabl

e to the

listed

company’s

shareholde 3339226783.73 3345170153.81 3365017880.33 -0.77% 2355700274.23 2373623431.15

rs before

exceptiona

l gains and

losses

(RMB)

Net cash

generated

from/used

in 6579606635.17 6920377390.35 6920377390.35 -4.92% 6510326570.48 6510326570.48

operating

activities

(RMB)

Basic

earnings

per share 1.43 1.61 1.61 -11.18% 1.40 1.40

(RMB/sha

re)

Diluted

earnings

per share 1.43 1.61 1.61 -11.18% 1.40 1.40

(RMB/sha

re)

Weighted

average

6.35%7.54%7.54%-1.19%6.99%6.99%

return on

equity (%)

Change of

December

31 December 31 December 2022 31 December 2021

2023 over 31

2023 December

2022(%)

Before Restated Restated Before Restated

Total

assets 198557296667.26 197525530887.76 197587102447.31 0.49% 175984101168.66 176040600182.21

(RMB)

Equity

58847592947.5554267143304.0254291425886.658.39%39801188662.1339822241022.30

attributabl

5China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

e to the

listed

company’s

shareholde

rs (RMB)

(2) Key Financial Information by Quarter

Unit: RMB

Q1 Q2 Q3 Q4

Operating revenue 3693584257.97 4101677313.02 3960045863.71 3995168345.52

Net profit attributable to the

listed company’s 850039606.18 1052295153.25 1246983201.06 422482801.67

shareholders

Net profit attributable to the

listed company’s

724465592.721076927780.431201169655.63336663754.95

shareholders before

exceptional gains and losses

Net cash generated

from/used in operating 699050929.84 1611794376.12 1578995551.67 2689765777.54

activities

Indicate by tick mark whether any of the quarterly financial data in the table above or their

summations differs materially from what have been disclosed in the Company’s quarterly or

semiyearly reports.□ Yes √ No

4. Share Capital and Shareholder Information at the Period-End

(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting

Rights as well as Holdings of Top 10 Shareholders

Unit: share

Number of

preferred

Number of

shareholders

29064 (17986 ordinary 30312 (1938 Number of preferred

Number of with resumed

A-shareholder shareholders at 9 A-sharehold shareholders with

ordinary voting rights at

s and 11078 the month-end ers and 1092 resumed voting rights 0 0

shareholders at the month-end

B-shareholder prior to the 3 B-sharehold at the period-end (if

the period-end prior to the

s) disclosure of ers) any)

disclosure of

this Report

this Report (if

any)

5% or greater shareholders or top 10 shareholders

Sharehold Increase/dec

Total shares

Name of Nature of ing rease in the Restricted Unrestricted

held at the Shares in pledge or frozen

shareholder shareholder percentag Reporting shares held shares held

period-end

e Period

CHINA

MERCHANTS

PORT Foreign

INVESTMENT legal 45.96% 1148648648 0 0 1148648648 0

DEVELOPMENT person

COMPANY

LIMITED

6China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

ZHEJIANG

PROVINCIAL

SEAPORT State-owne

INVESTMENT & d legal 23.08% 576709537 0 576709537 0 0

OPERATION person

GROUP CO.LTD.CHINA

MERCHANTS

State-owne

GANGTONG

d legal 14.84% 370878000 0 0 370878000 0

DEVELOPMENT

person

(SHENZHEN)

CO. LTD.SHENZHEN

INFRASTRUCTU

INVESTMENT

FUND-SHENZHE

Fund and

wealth

INFRASTRUCTU 2.59% 64850182 0 0 64850182 0

managemen

t products

INVESTMENT

FUND

PARTNERSHIP

(LIMITED

PARTNERSHIP)

BROADFORD State-owne

GLOBAL d legal 2.21% 55314208 0 0 55314208 0

LIMITED person

CHINA-AFRICA State-owne

DEVELOPMENT d legal 1.69% 42190151 -21912413 0 42190151 0

FUND person

CHINA LIFE

INSURANCE

Funds

COMPANY

wealth

LIMITED-TRADI

managemen 0.19% 4734022 4734022 0 4734022 0

TION- GENERAL

t products

INSURANCE

etc.PRODUCTS-005L

- CT001 HU

BASIC Funds

ENDOWMENT wealth

INSURANCE managemen 0.18% 4556289 4556289 0 4556289 0

FUND 1006 t products

PORTFOLIO etc.HONG KONG

Foreign

SECURITIES

legal 0.17% 4335761 -187135 0 4335761 0

CLEARING

person

COMPANY LTD.CHINA

Foreign

MERCHANTS

legal 0.11% 2668175 125720 0 2668175 0

SECURITIES

person

(HK) CO. LTD.Among the foregoing shareholders Shenzhen Infrastructure Investment Fund-Shenzhen

Infrastructure Investment Fund Partnership (Limited Partnership) subscribed for 64850182

shares of the Company offered in a non-public manner in 2019 for raising supporting funds at

RMB17.16 per share. The subscribed shares were floated on Shenzhen Stock Exchange on 4

Strategic investors or general November 2019 and the lock-in period lasted until 4 November 2020. China-Africa Development

legal person becoming top-ten Fund subscribed for 64102564 shares of the Company offered in a non-public manner in 2019

ordinary shareholders due to for raising supporting funds at RMB17.16 per share. The subscribed shares were floated on

placing of new shares (if any) Shenzhen Stock Exchange on 4 November 2019 and the lock-in period lasted until 4 November

2020. Zhejiang Provincial Seaport Investment & Operation Group Co. Ltd. subscribed for

576709537 shares of the Company offered in a non-public manner at RMB18.50 per share. The

subscribed shares were floated on Shenzhen Stock Exchange on 12 October 2022 and the lock-in

period lasts until 12 October 2025.

7China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

Broadford Global Limited is the controlling shareholder of China Merchants Port Investment

Related or acting-in-concert

Development Company Limited and China Merchants Gangtong Development (Shenzhen) Co.parties among the shareholders

Ltd. The Company does not know whether the other unrestricted shareholders are related parties

above

or not.Above shareholders involved in

entrusting/being entrusted and None

giving up voting rights

Special account for share

repurchases (if any) among the

None

top 10 shareholders (see note

10)

Top 10 unrestricted shareholders

Shares by type

Name of shareholder Unrestricted shares held at the period-end

Type Shares

CHINA MERCHANTS PORT

RMB

INVESTMENT

1148648648 o rdinary 1148648648

DEVELOPMENT COMPANY

LIMITED

CHINA MERCHANTS

RMB

GANGTONG

370878000 o rdinary 370878000

DEVELOPMENT

(SHENZHEN) CO. LTD.SHENZHEN

INFRASTRUCTURE

INVESTMENT

RMB

FUND-SHENZHEN

64850182 o rdinary 64850182

INFRASTRUCTURE

INVESTMENT FUND

PARTNERSHIP (LIMITED

PARTNERSHIP)

Domestical

BROADFORD GLOBAL ly listed

5531420855314208

LIMITED foreign

RMB

CHINA-AFRICA

42190151 o rdinary 42190151

DEVELOPMENT FUND

CHINA LIFE INSURANCE

COMPANY RMB

LIMITED-TRADITION- 4734022 ordinary 4734022

GENERAL INSURANCE share

PRODUCTS-005L- CT001 HU

BASIC ENDOWMENT RMB

INSURANCE FUND 1006 4556289 ordinary 4556289

PORTFOLIO share

RMB

HONG KONG SECURITIES

4335761 o rdinary 4335761

CLEARING COMPANY LTD.share

Domestical

CHINA MERCHANTS ly listed

26681752668175

SECURITIES (HK) CO. LTD. foreign

RMB

MAI SHUQING 2458747 o rdinary 2458747

Related or acting-in-concert

parties among top 10

Broadford Global Limited is the controlling shareholder of China Merchants Port Investment

unrestricted public

Development Company Limited and China Merchants Gangtong Development (Shenzhen) Co.shareholders as well as

Ltd. The Company does not know whether the other unrestricted shareholders are related parties

between top 10 unrestricted

or not.public shareholders and top 10

shareholders

Top 10 ordinary shareholders At the end of the Reporting Period the shareholder of the Company Mai Shuqing held 2458747

involved in securities margin shares through the customer credit transaction secured securities account in China Merchants

trading (if any) Securities Co. Ltd.Top 10 shareholders involved in refinancing business through lending shares

8China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

□ Applicable √ Not applicable

Change in Top 10 shareholders compared with the last period

Change in Top 10 shareholders compared with last period

Shares held by shareholders through their

Shares lent for refinancing and not general accounts and credit accounts and

Name of

Add/exit in the returned yet at the period-end Shares lent for refinancing and not

shareholders (full

Reporting Period returned yet at the period-end

name)

% of total share % of total share

Total amount Total amount

capital capital

CHINA LIFE

INSURANCE

COMPANY

LIMITED-TRADI

Add 0 0.00% 4734022 0.19%

TION- GENERAL

INSURANCE

PRODUCTS-005L

- CT001 HU

BASIC

ENDOWMENT

INSURANCE Add 0 0.00% 4556289 0.18%

FUND 1006

PORTFOLIO

ZHU HUI Exit 0 0.00% 0 0.00%

MONETARY

AUTHORITY OF

Exit 0 0.00% 0 0.00%

MACAO-SELF-O

WNED FUNDS

(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

No preferred shareholders in the Reporting Period.

(3) Ownership and Control Relations between the Actual Controller and the Company

9China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

5. Outstanding Bonds at the Date when this Report Was Authorized for Issue

(1) Bond Profile

Outstanding balance

Bond name Abbr. Bond code Issue date Maturity Interest

(RMB’0000) rate

2020 Public

Offering of

Corporate

Bonds of

China

20 CMPort

Merchants 149170 7 July 2020 8 July 2023 0 3.36%

Port Group

Co. Ltd. (for

qualified

investors)

(Phase I)

2022 Public

Offering of

Corporate

Bonds of

China

22 CMPort 29 August 2022 to

Merchants 148052 30 August 2025 300000.00 2.69%

01 30 August 2022

Port Group

Co. Ltd. (for

professional

investors)

(Phase I)

10China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

Outstanding balance

Bond name Abbr. Bond code Issue date Maturity Interest

(RMB’0000) rate

2022 Public

Offering of

Corporate

Bonds of

China 5 September 2022

22 CMPort

Merchants 148058 to 6 September 6 September 2024 300000.00 2.45%

Port Group 2022

Co. Ltd. (for

professional

investors)

(Phase II)

The maturity date of

2022 Public the bonds is 9

Offering of September 2023; if

Corporate the issuer exercises

Bonds of the redemption

China option the maturity

8 September 2022

Merchants 22 CMPort date of the bonds is

148060 to 9 September 0 1.93%

Port Group 03 8 March 2023; if the

2023

Co. Ltd. (for investor exercises

professional the resale option the

investors) maturity date of the

(Phase III) resale portion of the

bonds is 8 March

2023.

During the Reporting Period interest on “22 CMPort 03” for the period from 9 September 2022

Interest payment during the

to 7 March 2023 was paid on 8 March 2023. And interest on “20 CMPort 01” for the period from

Reporting Period

8 July 2022 to 7 July 2023 was paid on 8 July 2023.

(2) Latest Rating and Rating Change

On 29 May 2023 China Chengxin International Credit Rating Co. Ltd. (CCXI) issued the 2023

Follow-up Rating Report (XPWHZ [2023] No. 0268). CCXI granted the corporate credit rating of

AAA to the Company with a rating outlook of Stable.During the Reporting Period there is no rating difference in the main ratings of other bonds and

debt financing instruments issued by the Company in China.

(3) The Major Accounting Data and the Financial Indicators of the Recent 2 Years of the

Company up the Period-end

31 December 2022

Item 31 December 2023 Change

(Restated)

Current ratio 80.71% 76.93% 4.91%

Debt/asset ratio 36.76% 35.06% 1.70%

Quick ratio 79.96% 76.08% 5.10%

2023 2022(Restated) Change

Net profit before exceptional

gains and losses (RMB ’ 333922.68 336501.79 -0.77%

0000)

EBITDA/debt ratio 19.65% 21.47% -1.82%

Interest cover (times) 3.85 4.14 -7.00%

Cash-to-interest cover (times) 4.38 5.02 -12.75%

11China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

EBITDA-to-interest cover

6.286.59-4.70%

(times)

Debt repayment ratio (%) 100.00% 100.00% -

Interest payment ratio (%) 100.00% 100.00% -

Part III Significant Events

1. Implementation of business plan during the Reporting Period

During the Reporting Period in face of the complicated and changing situation for global supply

chain the Company adhered to the general thrust of seeking progress while maintaining stabilitycontinued to overcome challenges and record steady growth by focusing on “high-qualitydevelopment” and endogenous growth as well as innovation and upgrade made breakthrough in

“finely developing in Southeast Asia” and progress in lean operation as well as continuously

broke through the bottlenecks of homebase ports and achieved better performance with higher

quality with respect to construction of homebase ports technological innovation market expansion

operation management deepening reform comprehensive development ESG construction and

other aspects.

(1) As for the construction of homebase ports strengthening regional position and extending

value chain. The business volume of the West Shenzhen homebase port recorded a steady growth.The container business created a record high in its market share in foreign trade in the

Guangdong-Hong Kong-Macao Greater Bay Area representing a better performance than the

overall level of the Guangdong-Hong Kong-Macao Greater Bay Area. In addition the coordinated

ports model in the Guangdong- Hong Kong-Macau Greater Bay Area has been promoted to other

regions on an ongoing basis. The Company efficiently propelled the development of the coordinated

ports system covering the West Shenzhen Port Zone and the river ports in the Pearl River Delta

region by integrating the functions of the blockchain platform of the coordinated port and the barge

scheduling platform of the Pearl River Delta region which helped significantly streamline trade and

logistics development in the Greater Bay Area; With further consolidating the leading position of

bulk cargo operations the Company continued to rank first in terms of its domestic market share of

imported wheat meals and compound fertilizer. For Sri Lanka homebase port the Company

continued to promote the construction of the international shipping hubs in South Asia. CICT

continued to optimize the structure of shipping routes by focusing on local volume of containers

and consolidating the foundation and created a record high in terms of its market share of local

containers; the Company continued to extend its industry chain and build a logistics ecosphere.With the official initiating of trade and logistics project in South Asia the Company made efforts to

transform it into a new business growth point. HIPG continued to strengthen its core

competitiveness by enhancing its foundation of RORO operations and actively exploring RORO

value-added services and also collaborated with Sinopec in joint marketing of fuel oil which

contributed to a new breakthrough in refueling for main channel ships and a history high in the

business volume of RORO vehicles and fuel oil.

(2) In terms of technological innovation promoting digital innovation and constructing smart

port. CMIT a subsidiary of the Company continued to increase investment in R&D of

technologies steadily implemented the critical task to implement the structural upgrade of the

Container Terminal Operation System (CTOS) of Ministry of Transport continued to optimize the

proposal of autonomous driving technology sped up the R&D and promotion of products of

12China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

comprehensive service platform of “CM ePort” and constantly promoted management

delegation of the Smart Management Platform (SMP). In 2023 significant results were made in

implementing the critical task of CTOS; “CM ePort” succeeded in entirely covering the

domestic master terminals controlled by the Company to provide customers with one-stop

intelligent services; The construction of data base of CMPort business process platform data

indicator platform and global monitoring center has been finished on the “SMP” platform and

was comprehensively applied into the process management and operation analysis of enterprises.The project won the first prize in the operation management category of the first State-Owned

Enterprise Digital Scene Professional Competition by SASAC and the Special Award for Science

and Technology Progress Award issued by the China Ports & Harbours Association in 2023.

(3) In terms of overseas expansion implementing key projects and making breakthroughs in

key areas. In April 2023 an agreement on the South Asia Commercial and Logistics Hub in

Colombo Port was officially signed. The project with a total investment of US$392 million is

implemented by adopting the “Build-Operate-Transfer (BOT)” model will provide a superior

logistics and warehousing facility and will offer the full gamut of services such as container

disassembling and loading bonded warehousing free port operations warehouse leasing and

harbour trade logistics. The project will not only significantly improve the logistics services there

but will also attract more business and container volumes to Colombo Port further strengthening

the position of Colombo Port as an important hub in South Asia. In November 2023 China

Merchants Port (a holding subsidiary of the Company) acquired 51% of the shares of PT Nusantara

Pelabuhan Handal Tbk (NPH) at a consideration of approximately US$61.20 million and will

become its controlling shareholder. NPH is a company listed on the Indonesia Stock Exchange and

principally engaged in the provision of container multipurpose and general terminal services and

provision of engineering services for port equipment. It operates two container terminals at Jakarta

Port the largest port in Indonesia. This acquisition is a great progress for the Company to expand its

business in Southeast Asia and will further enable the Company to share the dividends brought by

the rapid development of the RCEP region.

(4) In terms of operation management facilitating intelligence-driven operation and

deepening lean management. By taking SMP as a starting point the Company built a one-stop

comprehensive management platform of CMPort supporting the business analysis of all modules

namely containers bulk cargos logistics park comprehensive development and intelligent

technology. SMP takes digital technology as the key force and applies smart tools to drive the

transformation of means modes and concepts of the operation and management of CMPort. At

present the Company has substantially realized the classification and management of information

of lifetime of assets the standardization and online presence of major business processes. Besides

the Company also optimizes the engineering management system and strengthens lifecycle

management of major projects; optimizes its profitability and constantly developed measures to

enhance its quality and efficiency; optimizes and reshapes its business and financial analysis

framework to strictly control the increase of cost and expenses; deepens cost control to form a

normalization mechanism of cost reduction and higher efficiency. The streamline operation of the

Company has achieved phased results.

(5) In terms of deepening reform deeply implementing the “Double-Hundred Action” andstimulating Company vitality. The Company has deeply implemented the “Double-HundredAction”. By focusing on "improving the core competitiveness of the enterprise and enhancing core

functions" the Company developed a reform implementation plan of the "Double Hundred Action"

for CMPort (2023-2025) and working record specifying the goals tasks timetable and road map in

the next round of reform. In 2023 the Company has achieved full coverage of tenure system and

13China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

contractual management improved the market-oriented salary distribution mechanism strengthened

the performance salary dual benchmarking and explored the construction of a diversified and

international incentive system that combines short and medium term incentives and supplements

cash and equity incentives. In May 2023 SASAC of the State Council released the special appraisal

results of “Double-Hundred Enterprises” of 2022 and the Company received “Excellent”

title for its outstanding achievements and remarkable reform results.

(6) In terms of comprehensive development domestic parks advancing together and overseas

parks developing against the trend. China Merchants Bonded has achieved effective utilization of

new warehouses at a rate of over 95%. The export service platform for new energy vehicles has

performed well. Qingdao Bonded has maintained a stable occupancy rate and diversified

self-operated business achieving a doubled inbound logistics year-on-year. The Hambantota Port

Industrial Park has further explored the market and realized a significant improvement on the

quality of customers. In 2023 12 new customers have signed contracts to settle in the park

contributing to a total of 51 companies settled in; the Djibouti International Free Trade Zone has

signed contracts with 351 companies with container yard fully occupied and warehouse occupied

over 96%.

(7) In terms of ESG construction actively implementing the ESG concept and having won

multiple awards. In 2023 under the guidance of the ESG strategic plan the Company further

improved the comprehensive ESG management system compiled an ESG work manual and

promoted the ESG upgrade of overseas projects. By focusing on main port business and industry

priorities the Company fully leveraged its sufficient resources to promote more distinctive ESG

practices. The Company has been selected into the "China ESG Listed Companies First 100" list

and "China Top 100 ESG Listed Companies" and has also been included in the "CSI Securities

Times ESG Top 100 Index". In 2023 the MSCI rating of China Merchants Port (the Company's

holding subsidiary) was upgraded by two levels from "CCC" to "BB".

2. Operating Division Product Category Operating Segment or Distribution Model

Contributing over 10% of Operating Revenue or Operating Profit

Unit: RMB

YoY

YoY change in

Gross change in

change in gross

Operating revenue Cost of sales profit operating

cost of profit

margin revenue

sales (%) margin

(%)

By operating division

Port

15036273586.668796081230.1341.50%-3.78%-3.90%0.08%

operations

By operating segment

Mainland

China Hong

10958608605.937201809031.7834.28%-9.47%-7.22%-1.60%

Kong and

Taiwan

Other

countries and 4791867174.29 2116377675.97 55.83% 16.16% 12.09% 1.60%

regions

14China Merchants Port Group Co. Ltd. Annual Report 2023 (Summary)

3. YoY Changes to the Scope of Consolidated Financial Statements

The Proposal on the Transfer of 45% Equity Interest in Ningbo Daxie China Merchants

International Terminals Co. Ltd. by a Majority-owned Subsidiary through Public Tender was

approved at the Second Extraordinary Meeting of the 10th Board of Directors of the Company in

2023 dated 20 March 2023. As such Cyber Chic Company Limited (hereinafter referred to as

“Cyber Chic”) a subsidiary of the Company was approved to transfer its 45% equity interest in

Ningbo Daxie China Merchants International Container Terminal Co. Ltd. (hereinafter referred to

as “CMICT”) through public tender on the China Beijing Equity Exchange. On 20 April 2023

Cyber Chic put its 45% equity interest in CMICT to a public tender on the China Beijing Equity

Exchange. On 19 May 2023 Ningbo Zhoushan Port Company Limited (hereinafter referred to as

“Ningbo Zhoushan Port”) became the transferee with a transaction price of RMB1845 million.On 25 May 2023 CYBER CHIC and Ningbo Zhoushan Port entered into the Equity Transaction

Contract. On 8 August 2023 CMICT changed its registered information with the competent

industrial and commercial administration and received its new business license upon the equity

transfer with its name changed to “Ningbo Daxie Container Terminal Co. Ltd.” (hereinafter

refer to as “Ningbo Daxie”). As such the equity transfer has been completed and Cyber Chic no

longer holds equity interest in Ningbo Daxie and Ningbo Daxie is no longer a subsidiary within the

scope of the Company’s consolidated financial statements.On 26 September 2023 the Company held the 4th Extraordinary Meeting of the 11th the Board of

Directors for 2023 to review and approve the Proposal on the Transfer and Acquisition of Equity

Interests in Relevant Subsidiaries and Related-party Transactions (the “ Transaction” ).Accordingly China Merchants International Technology Company Limited (CMIT) subordinate to

the Company transferred 100% share of Yingkou Port Information Technology Co. Ltd. (YPIT)

and 79.03% share of Dalian Port Logistics Network Co. Ltd. (DPN) to Liaoning Port Co. Ltd.(Liaoning Port). Besides the Company acquired 22.3779% 13.2563% and 7.4495% (43.0837% in

aggregate) of the share in CMIT held respectively by Dalian Port Container Development Co. Ltd.

(DPCD) Dalian Port Jifa Logistics Co. Ltd. (Jifa Logistics) and Yingkou Port Group Co. Ltd.

(Yingkou Port Group). DPCD Jifa Logistics and Yingkou Port Group are all majority-owned

subsidiaries of the related party Liaoning Port Group Co. Ltd. (Liaoning Port Group) Limited. In

November 2023 YPIT and DPN completed the business registration changes in connection with the

Transaction. As a result YPIT and DPN were no longer subsidiaries included in the Company’s

consolidated financial statements.China Merchants Port Group Co. Ltd.Board of Directors

Dated 2 April 2024

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