CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS
FOR THE YEAR FROM 1 JANUARY TO 31 DECEMBER 2025CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
CONTENTS PAGE(S)
AUDITOR'S REPORT
CONSOLIDATED BALANCE SHEET 1- 3
BALANCE SHEET OF THE COMPANY 4 - 6
CONSOLIDATED INCOME STATEMENT 7 - 8
INCOME STATEMENT OF THE COMPANY 9
CONSOLIDATED CASH FLOW STATEMENT 10
CASH FLOW STATEMENT OF THE COMPANY 11
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 12 - 13
THE COMPANY'S STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 14 - 15
NOTES TO THE FINANCIAL STATEMENTS 16 - 200AUDITOR'S REPORT毕马威华振审字第2607559号
To all the shareholders of China Merchants Port Group Co. Ltd.I. Audit Opinion
We have audited the accompanying financial statements of China Merchants Port Group Co. Ltd.("China Merchants Port Group") which comprise the consolidated and company balance sheets as at 31
December 2025 the consolidated and company income statements the consolidated and company cash
flow statements the consolidated and company statements of changes in shareholders' equity for the
year then ended and notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and company financial position of China Merchants Port Group as at 31 December 2025
and the consolidated and company financial performance and cash flows of China Merchants Port Group
for the year then ended in accordance with Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China.II. Basis for the Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
China Merchants Port Group in accordance with the Independence Standards for Chinese Certified
Public Accountants No. 1 – Independence Requirements for Audit and Review Engagements as
applicable to audits of financial statements of public interest entities and the China Code of Ethics for
Certified Public Accountants (“the Code”) and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.- 1 -AUDITOR'S REPORT - continued毕马威华振审字第2607559号
III. Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole and in forming our opinion thereon and we do not
provide a separate opinion on these matters.Subsequent measurement of long-term equity investments in associates
Refer to Note (IV) 14 accounting policy to the financial statements Note (VIII) 12 to the consolidated financial
statements and Note (XX) 2 to China Merchants Port Group's financial statements.The Key Audit Matter How the matter was addressed in our audit
As at 31 December 2025 the carrying amount of China Our audit procedures to the key audit matter included
Merchants Port Group's long-term equity investments in the following:
associates amounts to RMB 93811201555.24
accounting for 71.45% of the total shareholder's equity. * Understand and evaluate the design and operation
For the year ended 31 December 2025 the investment effectiveness of internal control over key financial
income from associates recognised under the equity statements related to the subsequent measurement
method amounts to RMB 6035646183.31 accounting for of long-term equity investments of associated
67.77% of the consolidated net profit. enterprises;
Since the amount of income from investments in associates * Evaluate the independence and professional
recognised by China Merchants Port Group for the year is competence of auditors of important joint
significant we determine the above-mentioned subsequent ventures;
measurement of the long-term equity investments in * Participate in the risk assessment process of
associates as a key audit matter of the consolidated important joint venture auditors based on the
financial statements. purpose of group audit and evaluate whether the
audit evidence obtained by the risk assessment
procedures implemented by them can provide an
appropriate basis for identifying and evaluating the
risk of material misstatement (RMM) of the
group's financial statements;
* Communicate with important joint venture
auditors on matters related to the assessment of
risk of material misstatement (RMM) of the
Group's financial statements and evaluate the
appropriateness of further audit procedures they
have implemented to address risk of material
misstatement (RMM) of the Group's financial
statements;
- 2 -AUDITOR'S REPORT - continued毕马威华振审字第2607559号
III. Key Audit Matters - continued
The Key Audit Matter How the matter was addressed in our audit
* Communicate with the auditors of important joint
ventures about the important matters that may
affect the consolidated financial statements found
during the audit the procedures implemented and
the conclusions reached;
* Evaluate the appropriateness of the management's
consolidated adjustment to the financial
information of the joint venture based on the
accounting policies of China Merchants Port
Group including checking the supporting
documents of the relevant difference adjustment
and the accuracy of the subsequent measurement
of the long-term equity investments of the joint
venture based on the adjustment.Goodwill impairment
Refer to Note (IV) 7 accounting policy to the financial statements Note (VIII) 20 to the consolidated financial
statements.The Key Audit Matter How the matter was addressed in our audit
As at 31 December 2025 the carrying amount of the Our audit procedures to the key audit matter included
goodwill presented in the consolidated financial statements the following:
of China Merchants Port Group is RMB 6176416050.77.* Understand and evaluate the design and operation
effectiveness of internal control over key financial
statements related to goodwill impairment;
* Evaluate whether the management's identification
of assets groups the method of allocating goodwill
to assets groups or assets group portfolios and the
method used to determine the recoverable amount
meet the requirements of the Accounting
Standards for Business Enterprises;
- 3 -AUDITOR'S REPORT - continued毕马威华振审字第2607559号
III. Key Audit Matters - continued
The Key Audit Matter How the matter was addressed in our audit
The management of China Merchants Port Group conducts * Based on our understanding of the Based on our
impairment testing on goodwill at the end of each year. understanding of the industry in which China
Management compares the book value of the assets group Merchants Port Group is located and taking into
or assets group combination containing the apportioned account the historical operation of relevant asset
goodwill with its recoverable amount to determine whether groups and other external information evaluate
it is necessary to withdraw the impairment. The the rationality of the revenue growth rate adopted
recoverable amount is the higher of the net amount of the by management in determining the present value
fair value of the assets group or the combination of assets of the expected future cash flow;
groups minus the disposal expenses and the present value
of the estimated future cash flow. The determination of the * Use the work of our valuation experts to evaluate
present value of expected future cash flows involves the appropriateness of the valuation method and
significant management judgments especially the the reasonableness of the discount rate used by
estimation of key assumptions such as revenue growth rate the management to determine the present value of
and discount rate. the estimated future cash flow of the relevant
asset group;
Since the book value of goodwill is materiality to the
financial statements and the impairment testing of * Carry out sensitivity analysis on the key
goodwill involves management's major judgments and assumptions of revenue growth rate and discount
estimates these judgments are inherently uncertain and rate adopted by management evaluate the possible
may be affected by management bias's bias we recognise impact of changes in key assumptions on the
the impairment of goodwill as a key audit matter. evaluation results of goodwill impairment and
whether there is any sign of management bias;
* Compare the key assumptions adopted by
management when preparing the present value of
estimated cash flow in the previous year with the
actual situation of the current year to evaluate
whether there is any sign of management bias;
* Evaluate whether the disclosure of goodwill
impairment and key assumptions adopted in the
financial statements meet the requirements of the
Accounting Standards for Business Enterprises.- 4 -AUDITOR'S REPORT - continued毕马威华振审字第2607559号
IV. Other Information
China Merchants Port Group’s management is responsible for the other information. The other
information comprises all the information included in 2025 annual report of China Merchants Port Group
other than the financial statements and our auditor's report thereon.Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the Accounting Standards for Business Enterprises and for the design implementation
and maintenance of such internal control necessary to enable that the financial statements are free from
material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing China Merchants Port
Group’s ability to continue as a going concern disclosing as applicable matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate China
Merchants Port Group or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing China Merchants Port Group’s financial
reporting process.- 5 -AUDITOR'S REPORT - continued毕马威华振审字第2607559号
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error as fraud may involve
collusion forgery intentional omissions misrepresentations or the override of internal control.* Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances.* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.* Conclude on the appropriateness of management’s use of the going concern basis of accounting
and based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on China Merchants Port Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However future events or conditions may cause China Merchants Port Group to cease
to continue as a going concern.* Evaluate the overall presentation structure and content of the financial statements including the
disclosures and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.* Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within China Merchants Port Group to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We remain solely
responsible for our audit opinion.- 6 -AUDITOR'S REPORT - continued毕马威华振审字第2607559号
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable related
safeguards.From the matters communicated with those charged with governance we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when in extremely rare circumstances we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s
Republic of China
吴惠煌(Engagement Partner)
Beijing China 李丹
1 April 2026
- 7 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2025
Consolidated Balance Sheet
RMB
Item Notes Closing Balance Opening Balance
Current Assets:
Cash and bank balances (VIII)1 15374846360.79 16630400701.13
Including: Cash deposited in the finance company (XV)6(1) 4733188415.27 4745991554.35
Financial assets held for trading (VIII)2 7578824365.75 5685135472.01
Derivative financial assets - -
Bills receivable (VIII)3 151029884.15 270127883.63
Accounts receivable (VIII)4 1297166857.70 1193408383.78
Receivables under financing (VIII)5 114680738.25 -
Prepayments (VIII)6 82819198.95 59177117.22
Funds receivable under centralised management - -
Other receivables (VIII)7 1012655278.64 1166499343.90
Including: Dividends receivable (VIII)7 576943449.36 554387723.94
Inventories (VIII)8 307216425.15 269958020.34
Including: Raw materials 288311631.73 260819412.56
Goods in stock (finished products) 9419494.95 4683965.30
Data resources - -
Contract assets - -
Assets held for sale - -
Non-current assets due within one year (VIII)9 - 34997992.08
Other current assets (VIII)10 158947975.17 251697812.77
Total current assets 26078187084.55 25561402726.86
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables (VIII)11 3874516647.46 3777373574.70
Long-term equity investments (VIII)12 103073100064.87 100018029894.96
Investments in other equity instruments (VIII)13 141766365.15 139451887.05
Other non-current financial assets (VIII)14 28768810.95 28524600.31
Investment properties (VIII)15 3157951323.78 3288690070.60
Fixed assets (VIII)16 30442884297.82 30689217791.45
Including: Cost of fixed assets 57478268295.87 55832500023.64
Accumulated depreciation 26823319777.57 24930618296.33
Provision for impairment of fixed assets 212280683.43 213290383.06
Construction in progress (VIII)17 3403583431.48 3311109996.59
Right-of-use assets (VIII)18 8965304928.17 8957352063.54
Intangible assets (VIII)19 17643855579.95 17335082422.84
Including: Data resources 5616273.79 6251120.27
Development costs (IX)2 34234599.73 63395053.69
Including: Data resources - -
Goodwill (VIII)20 6176416050.77 5933310929.34
Long-term deferred expenses (VIII)21 919719245.18 940404479.94
Deferred tax assets (VIII)22 355487521.84 365481207.77
Other non-current assets (VIII)23 718921542.98 1109025181.81
Total non-current assets 178936510410.13 175956449154.59
TOTAL ASSETS 205014697494.68 201517851881.45
The accompanying notes form part of the financial statements.- 1 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2025
Consolidated Balance Sheet - continued
RMB
Item Notes Closing Balance Opening Balance
Current liabilities:
Short-term borrowings (VIII)24 19775820831.32 12791242141.69
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable (VIII)25 - 1536194.00
Accounts payable (VIII)26 739900492.35 785830532.33
Advance payments received (VIII)27 12191454.52 14576237.84
Contract liabilities (VIII)28 446822948.79 267888272.62
Employee benefits payable (VIII)29 1297834679.20 1168592349.15
Including: Payroll payable 1252447318.40 1126682376.20
Welfare payable - -
Taxes payable (VIII)30 913284472.54 725165726.32
Including: Taxes payable 904515326.51 714248068.55
Other payables (VIII)31 2034923078.95 1923980312.98
Including: Dividends payable (VIII)31 135169470.79 132334744.28
Liabilities held for sale - -
Non-current liabilities due within one year (VIII)32 6042522685.33 10506682795.60
Other current liabilities (VIII)33 2199301417.02 4061201760.72
Total current liabilities 33462602060.02 32246696323.25
Non-current Liabilities:
Long-term borrowings (VIII)34 7439956123.50 15582593255.65
Bonds payable (VIII)35 20709787532.29 13875559119.52
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities (VIII)36 1690860832.08 1387206990.51
Long-term payables (VIII)37 3721605292.07 3204582672.75
Long-term employee benefits payable (VIII)38 546386377.62 655658044.98
Provisions (VIII)39 185493182.45 159435795.50
Deferred income (VIII)40 923349449.41 1268975316.61
Deferred tax liabilities (VIII)22 4869165969.03 4795985333.59
Other non-current liabilities (VIII)41 164442477.36 182720254.84
Total non-current liabilities 40251047235.81 41112716783.95
TOTAL LIABILITIES 73713649295.83 73359413107.20
The accompanying notes form part of the financial statements.- 2 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2025
Consolidated Balance Sheet - continued
RMB
Item Notes Closing Balance Opening Balance
Shareholders' equity:
Share capital (VIII)42 2481842185.00 2501308481.00
Including: State capital - -
State-owned corporate capital 2235944258.00 2236269506.00
Collective capital - -
Private capital 227577129.00 240947591.00
Foreign capital 18320798.00 24091384.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve (VIII)44 36816586615.98 37362981831.67
Less: Treasury shares (VIII)43 - 50559789.14
Other comprehensive income (VIII)45 -969163426.51 -1558381237.45
Including: Translation difference of financial statements
denominated in foreign currencies -708485813.50 -1030995258.63
Specific reserve (VIII)46 57278650.39 40074647.27
Surplus reserve (VIII)47 1249537330.50 1249537330.50
Including: Legal reserve 1249537330.50 1249537330.50
Arbitrary accumulation fund - -
Retained earnings (VIII)48 24729748576.84 21957778579.11
Total equity attributable to shareholders of the Company 64365829932.20 61502739842.96
Non-controlling interests 66935218266.65 66655698931.29
TOTAL SHAREHOLDERS' EQUITY 131301048198.85 128158438774.25
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 205014697494.68 201517851881.45
The accompanying notes form part of the financial statements.The financial statements were signed by the following:
________X__u_ S__o_n_g ________ _____H__u_an_g_ _Z_h_e_n_z_h_o_u_ ____ __________L_i_u_ S_h_i_x_ia_ _ ________
Legal Representative Chief Financial Officer Head of Accounting Department
- 3 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2025
Balance Sheet of the Company
RMB
Item Notes Closing Balance Opening Balance
Current Assets:
Cash and bank balances 2754342020.39 4051544937.38
Including: Cash deposited in the finance company 1739063279.42 2738121884.17
Financial assets held for trading 3253363657.53 2902402602.73
Derivative financial assets - -
Bills receivable - -
Accounts receivable - -
Receivables under financing - -
Prepayments 339344.00 879205.65
Funds receivable under centralised management - -
Other receivables (XX)1 1176102035.60 2413442661.68
Including: Dividends receivable (XX)1 148813646.87 965690879.89
Inventories - -
Including: Raw materials - -
Goods in stock (finished products) - -
Data resources - -
Contract assets - -
Assets held for sale - -
Non-current assets due within one year 155510.11 -
Other current assets 10184446.02 8783543.80
Total current assets 7194487013.65 9377052951.24
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables 217060862.62 9546673.32
Long-term equity investments (XX)2 56471842754.45 56009282172.30
Investments in other equity instruments 130399200.00 130125719.67
Other non-current financial assets - -
Investment properties - -
Fixed assets 24431510.36 25785696.83
Including: Fixed assets - cost 34337104.85 33196561.49
Accumulated depreciation 9905594.49 7410864.66
Provision for impairment of fixed assets - -
Construction in progress 1014339.62 607774.34
Right-of-use assets - -
Intangible assets 87413564.25 55685403.63
Including: Data resources - -
Development costs 9629737.65 53435391.51
Including: Data resources - -
Goodwill - -
Long-term deferred expenses 554450.68 287141.10
Deferred tax assets - -
Other non-current assets - -
Total non-current assets 56942346419.63 56284755972.70
TOTAL ASSETS 64136833433.28 65661808923.94
The accompanying notes form part of the financial statements.- 4 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2025
Balance Sheet of the Company - continued
RMB
Item Notes Closing Balance Opening Balance
Current Liabilities:
Short-term borrowings - 136552893.75
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable - -
Accounts payable - -
Advance payments received - -
Contract liabilities - -
Employee benefits payable 68938370.19 57295154.90
Including: Payroll payable 68787532.24 57135815.24
Welfare payable - -
Taxes payable 4410347.86 2967430.48
Including: Taxes payable 4410347.86 2967430.48
Other payables 864340142.41 413758779.36
Including: Dividends payable 34577578.12 34577578.12
Liabilities held for sale - -
Non-current liabilities due within one year 4107494323.34 3126770180.31
Other current liabilities 2037223115.04 4020214246.58
Total current liabilities 7082406298.84 7757558685.38
Non-current Liabilities:
Long-term borrowings 2242804000.00 7966000000.00
Bonds payable 11000000000.00 6000000000.00
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities - -
Long-term payables - -
Long-term employee benefits payable - -
Provisions - -
Deferred income - 11000000.00
Deferred tax liabilities 37309068.19 37000434.40
Other non-current liabilities - -
Total non-current liabilities 13280113068.19 14014000434.40
TOTAL LIABILITIES 20362519367.03 21771559119.78
The accompanying notes form part of the financial statements.- 5 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2025
Balance Sheet of the Company - continued
RMB
Item Notes Closing Balance Opening Balance
Shareholders’ equity
Share capital 2481842185.00 2501308481.00
Including: State capital - -
State-owned corporate capital 2235944258.00 2236269506.00
Collective capital - -
Private capital 227577129.00 240947591.00
Foreign capital 18320798.00 24091384.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve 37426664891.68 37773833882.62
Less: Treasury shares - 50559789.14
Other comprehensive income 108754933.18 130414442.07
Including: Translation difference of financial statements
denominated in foreign currencies - -
Specific reserve - -
Surplus reserve 1249537330.50 1249537330.50
Including: Legal reserve 1249537330.50 1249537330.50
Arbitrary accumulation fund - -
Retained earnings 2507514725.89 2285715457.11
Total shareholders’ equity 43774314066.25 43890249804.16
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 64136833433.28 65661808923.94
The accompanying notes form part of the financial statements.- 6 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Income Statement
RMB
Item Notes For the year ended 31 December Current Year Prior Year
I. Total operating income (VIII)49 17246382527.85 16130778028.24
Including: Operating income 17246382527.85 16130778028.24
II. Total operating costs 13239243126.94 13409015440.91
Less: Operating costs (VIII)49 9656187248.28 9196016692.35
Taxes and surcharges (VIII)50 367073400.66 332333763.15
Selling and distribution expenses - -
General and administrative expenses (VIII)51 1533391292.39 1821544282.18
Research and development expenses (VIII)52 177750273.52 201755066.36
Financial expenses (VIII)53 1504840912.09 1857365636.87
Including: Interest expenses 1910007525.81 2215219118.52
Interest income 379520826.85 477430320.41
Net exchange loss (“-” for gains) -44557295.34 109256513.08
Add: Other income (VIII)54 172426753.42 185410303.29
Investment income (“-” for losses) (VIII)55 6421520127.75 6546996531.50
Including: Income from investments in associates
and joint ventures (VIII)55 6324208650.73 6441005613.25
Income arising from derecognition of
financial assets measured at amortised cost - -
Net exposure hedging income (“-” for losses) - -
Gains from changes in fair value (“-” for losses) (VIII)56 42374127.06 390232365.15
Reversal of credit impairment (VIII)57 -290616620.93 272994309.08
Impairment losses (“-” for losses) (VIII)58 -10072860.74 -8880788.88
Gains from asset disposals (“-” for losses) (VIII)59 7391759.06 34062395.75
The accompanying notes form part of the financial statements.- 7 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Income Statement - continued
RMB
Item Notes For the year ended 31 December Current Year Prior Year
III. Operating profit 10350162686.53 10142577703.22
Add: Non-operating income (VIII)60 83919649.43 59018655.32
Including: Government grants - -
Less: Non-operating expenses (VIII)61 57795398.52 70252101.73
IV. Profit before income tax 10376286937.44 10131344256.81
Less: Income tax expenses (VIII)64 1470295014.95 1252837946.90
V. Net profit for the year 8905991922.49 8878506309.91
(I) Net profit classified by continuity of operations
1. Net profit from continuing operation 8905991922.49 8878506309.91
2. Net profit from discontinued operation - -
(II) Net profit classified by ownership
1. Attributable to shareholders of the Company 4611352247.98 4516301317.16
2. Non-controlling interests 4294639674.51 4362204992.75
VI. Other comprehensive income net of tax (VIII)45 1426044252.93 -1529342680.40
(I) Other comprehensive income (net of tax) attributable to
shareholders of the Company 589008913.80 -654754643.10
1. Items that will not be reclassified to profit or loss 35827407.85 -102848966.14
(1) Remeasurement of defined benefit plan 23088562.44 -24453072.38
(2) Other comprehensive income recognised under the equity
method 11925433.55 -64909867.66
(3) Changes in fair value of investments in other equity
instruments 813411.86 -13486026.10
(4) Changes in fair value of entity’s own credit risk - -
(5) Others - -
2. Item that reclassified to profit or loss 553181505.95 -551905676.96
(1) Other comprehensive income recognised under the equity
method 230672060.82 25113263.42
(2) Changes in fair value of other debt investments - -
(3) Amount of financial assets reclassified into other
comprehensive income - -
(4) Credit losses of other debt investments - -
(5) Cash flow hedge reserve (effective part of cash flow
hedging profit and loss) - -
(6) Translation differences arising from translation of foreign
currency financial statements 322509445.13 -577018940.38
(7) Others - -
(II) Other comprehensive income (net of tax) attributable to
non-controlling interests 837035339.13 -874588037.30
VII. Total comprehensive income for the year 10332036175.42 7349163629.51
(I) Attributable to shareholders of the Company 5200361161.78 3861546674.06
(II) Attributable to non-controlling interests 5131675013.64 3487616955.45
VIII. Earnings per share
(I) Basic earnings per share (RMB/share) 1.85 1.81
(II) Diluted earnings per share (RMB/share) 1.85 1.81
The accompanying notes form part of the financial statements.- 8 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Income Statement of the Company
RMB
Item Notes For the year ended 31 December Current Year Prior Year
I. Total operating income (XX)3 21190068.20 18456183.80
Including: Operating costs (XX)3 3739443.84 3739443.84
Taxes and surcharges 1195169.13 1304373.74
Selling and distribution expenses - -
General and administrative expenses 185237799.33 157158232.51
Research and development expenses 8137624.92 17042748.71
Financial expenses 393541343.52 406958438.88
Including: Interest expenses 435895067.88 483982034.35
Interest income 54998360.11 85684756.27
Net exchange loss (“-” for losses) 8468483.63 2351741.58
Add: Other income 302422.78 397379.05
Investment income (“-” for losses) (XX)4 2626531594.62 2453196389.65
Including: Income from investments in associates
and joint ventures (XX)4 1227350189.01 1154581593.08
Income arising from derecognition of
financial assets measured at amortised cost - -
Net exposure hedging income (“-” for losses) - -
Gains from changes in fair value (“-” for losses) 3782835.61 4999863.00
Reversal of credit impairment (“-” for losses) - -
Impairment losses (“-” for losses) - -
Gains from asset disposals (“-” for losses) - -9551.52
II. Operating profit 2059955540.47 1890837026.30
Add: Non-operating income 1920689.20 185319.67
Including: Government grants -
Less: Non-operating expenses - -
III. Profit before income tax 2061876229.67 1891022345.97
Less: Income tax expenses 240263.71 471198.63
IV. Net profit for the year 2061635965.96 1890551147.34
Net profit from continuing operations (“-” for net loss) 2061635965.96 1890551147.34
Net profit from discontinued operations (“-” for net loss) - -
V. Other comprehensive income net of tax -21659508.89 9893609.24
(I) Items that will not be reclassified to profit or loss 427516.47 -14557437.08
1. Remeasurement of the defined benefit plan - -
2. Other comprehensive income recognised
under the equity method 222406.22 -1085453.65
3. Changes in fair value of investments in other equity
instruments 205110.25 -13471983.43
4. Changes in fair value of entity’s own credit risk - -
5. Others - -
(II) Items that may be reclassified to profit or loss -22087025.36 24451046.32
1. Other comprehensive income recognised
under the equity method -22087025.36 24451046.32
2. Changes in fair value of other debt investments - -
3. Amount of financial assets reclassified into other
comprehensive income - -
4. Credit losses of other debt investments - -
5. Cash flow hedge reserve (effective part of cash flow hedging
profit and loss) - -
6. Translation differences arising from translation of foreign
currency financial statements - -
7. Others - -
VI. Total comprehensive income for the year 2039976457.07 1900444756.58
The accompanying notes form part of the financial statements.- 9 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Cash Flow Statement
RMB
Item Notes For the year ended 31 December Current Year Prior Year
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 17599258943.33 16589207291.70
Refund of taxes 28876015.22 180073212.01
Proceeds from other operating activities (VIII)67(1) 979067512.74 1413169094.11
Sub-total of cash inflows 18607202471.29 18182449597.82
Payment for goods and services 4540007962.94 4334345500.75
Payment to and for employees 3655492281.56 3464632790.50
Payment of various taxes 1615413653.01 1594215474.70
Payment for other operating activities (VIII)67(1) 621856184.73 776043007.47
Sub-total of cash outflows 10432770082.24 10169236773.42
Net cash inflow from operating activities (VIII)68(1) 8174432389.05 8013212824.40
II. Cash flows from investing activities:
Proceeds from disposal of investments 48319800000.00 27563331868.18
Investment returns received 3124782018.71 2945983531.55
Net proceeds from disposal of fixed assets intangible assets and
other long-term assets 204058464.74 63168477.18
Net proceeds from disposal of subsidiaries and other business
units - -
Proceeds from other investing activities (VIII)67(2) 243876733.40 16260626.10
Sub-total of cash inflows 51892517216.85 30588744503.01
Payment for acquisition of fixed assets intangible assets and
other long-term assets 2177197094.25 1945061261.66
Payment for acquisition of investments 50171806292.72 27610855675.82
Net payment for acquisition of subsidiaries and other business
units 12986529.91 293358563.60
Payment for other investing activities (VIII)67(2) 198813248.05 261140547.34
Sub-total of cash outflows 52560803164.93 30110416048.42
Net cash inflow from investing activities -668285948.08 478328454.59
III. Cash flows from financing activities:
Proceeds from investors 7225165.59 76758234.49
Including: Proceeds from non-controlling shareholders of
subsidiaries - 43561800.00
Proceeds from borrowings 34549428532.14 26764844974.84
Proceeds from other financing activities (VIII)67(3) 296545809.81 55862550.05
Sub-total of cash inflows 34853199507.54 26897465759.38
Repayments of borrowings 34753648649.24 27301766289.39
Payment for dividends profit distributions or interest (VIII)68(3) 6676591884.69 6961913964.29
Including: Dividends and profits paid to
non-controlling shareholders of subsidiaries 3163208603.63 3553580816.50
Payment for other financing activities (VIII)67(3) 2194782463.37 539924528.35
Sub-total of cash outflows 43625022997.30 34803604782.03
Net cash outflow from financing activities -8771823489.76 -7906139022.65
IV. Effect of foreign exchange rate changes on cash
and cash equivalents -5034844.08 -88946332.53
V. Net increase in cash and cash equivalents (VIII)68(1) -1270711892.87 496455923.81
Add: Cash and cash equivalents at the beginning of the year 16515069554.91 16018613631.10
VI. Cash and cash equivalents at the end of the year (VIII)68(2) 15244357662.04 16515069554.91
The accompanying notes form part of the financial statements.- 10 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Cash Flow Statement of the Company
RMB
Item Notes For the year ended 31 December Current Year Prior Year
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services - -
Refunds of taxes 220631.35 4722220.72
Proceeds from other operating activities 157346724.18 465774682.36
Sub-total of cash inflows 157567355.53 470496903.08
Payment for goods and services 3418230.00 105600.00
Payment to and for employees 106957419.23 99220574.59
Payment of various taxes 580390.65 548632.16
Payment for other operating activities 137691009.08 420429917.05
Sub-total of cash outflows 248647048.96 520304723.80
Net cash outflow from operating activities -91079693.43 -49807820.72
II. Cash flows from investing activities:
Proceeds from disposal of investments 21124800000.00 10500000000.00
Investment returns received 2845845933.27 922093300.17
Net proceeds from disposal of fixed assets intangible assets and
other long-term assets - 4620.00
Net proceeds from disposals of subsidiaries and
other business units - -
Proceeds from other investing activities 2157923095.86 2105669483.62
Sub-total of cash inflows 26128569029.13 13527767403.79
Payment for acquisition of fixed assets intangible assets and
other long-term assets 1838704.87 18200422.44
Payment for acquisition of investments 21350000000.00 11945339800.00
Net payment for acquisition of subsidiaries and other
business units - -
Payment for other investing activities 1645853857.02 1990013432.08
Sub-total of cash outflows 22997692561.89 13953553654.52
Net cash inflow/(outflow) from investing activities 3130876467.24 -425786250.73
III. Cash flows from financing activities:
Proceeds from investors 7225165.59 33196434.49
Proceeds from borrowings 9453406452.28 14361983943.48
Proceeds from other financing activities 11831089.81 11034623.06
Sub-total of cash inflows 9472462707.68 14406215001.03
Repayments of borrowings 11160273000.00 11207000000.00
Payment for dividends profit distributions or interests 2296327290.40 1920172028.00
Payment for other financing activities 354268537.81 68463301.09
Sub-total of cash outflows 13810868828.21 13195635329.09
Net cash (outflow)/inflow from financing activities -4338406120.53 1210579671.94
IV. Effect of foreign exchange rate changes on cash
and cash equivalents -614028.81 312670.57
V. Net (decrease)/increase in cash and cash equivalents
(“-” for net decrease) -1299223375.53 735298271.06
Add: Cash and cash equivalents at the beginning of the year 4016283989.90 3280985718.84
VI. Cash and cash equivalents at the end of the year 2717060614.37 4016283989.90
The accompanying notes form part of the financial statements.- 11 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Statement of Changes in Shareholders' Equity
RMB
Current Year
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
Item Less: Other difference of Non-controlling
Share capital Capital reserve Treasury comprehensive financial statements Specific reserve Surplus reserve Retained earnings Subtotal interests
Total
Preference Perpetual shares income
shares bonds Others
denominated in
foreign
currencies
I. Balance at the end of the previous year 2501308481.00 - - - 37362981831.67 50559789.14 -1558381237.45 -1030995258.63 40074647.27 1249537330.50 21957778579.11 61502739842.96 66655698931.29 128158438774.25
Add: Changes in accounting policies - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Business combination involving entities
under common control - - - - - - - - - - - - - -
Others - - - - - - - - - - - - - -
II. Balance at the beginning of the year 2501308481.00 - - - 37362981831.67 50559789.14 -1558381237.45 -1030995258.63 40074647.27 1249537330.50 21957778579.11 61502739842.96 66655698931.29 128158438774.25
III. Changes in equity during the year -19466296.00 - - - -546395215.69 -50559789.14 589217810.94 322509445.13 17204003.12 - 2771969997.73 2863090089.24 279519335.36 3142609424.60
(I) Total comprehensive income - - - - - - 589008913.80 322509445.13 - - 4611352247.98 5200361161.78 5131675013.64 10332036175.42
(II) Shareholders’ contributions of capital -19466296.00 - - - -546395215.69 -50559789.14 208897.14 - 33514.20 - 454446.93 -514604864.28 -1661668210.63 -2176273074.91
1. Contribution by ordinary shareholders 351400.00 - - - 5489164.28 - - - - - - 5840564.28 - 5840564.28
2. Contribution by holders of other equity
instruments - - - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -506305.80 - - - - - - -506305.80 -359394.37 -865700.17
4. Others -19817696.00 - - - -551378074.17 -50559789.14 208897.14 - 33514.20 - 454446.93 -519939122.76 -1661308816.26 -2181247939.02
(III) Appropriation of profits - - - - - - - - - - -1839836697.18 -1839836697.18 -3202040013.42 -5041876710.60
1. Appropriation for surplus reserve - - - - - - - - - - - - - -
Including: Legal reserve - - - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1839836697.18 -1839836697.18 -3146813250.95 -4986649948.13
3. Others - - - - - - - - - - - - -55226762.47 -55226762.47
(IV) Transfers within equity - - - - - - - - - - - - - -
1. Share capital increased by capital reserve
transfer - - - - - - - - - - - - - -
2. Share capital increased by surplus reserve
transfer - - - - - - - - - - - - - -
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - - - -
4. Changes arising from defined benefit plan
transferred to retained earnings - - - - - - - - - - - - - -
5. Transfer of other comprehensive income
to retained earnings - - - - - - - - - - - - - -
6. Others - - - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - 17170488.92 - - 17170488.92 11552545.77 28723034.69
1. Appropriation during the year - - - - - - - - 64383426.24 - - 64383426.24 63217592.53 127601018.77
2. Utilisation during the year - - - - - - - - -47212937.32 - - -47212937.32 -51665046.76 -98877984.08
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the year 2481842185.00 - - - 36816586615.98 - -969163426.51 -708485813.50 57278650.39 1249537330.50 24729748576.84 64365829932.20 66935218266.65 131301048198.85
- 12 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
Prior Year
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
Item Less: Other difference of
Share capital Capital reserve Treasury comprehensive financial Specific reserve Surplus reserve Retained
Non-controlling Total
statements earnings Subtotal interests
Preference perpetual shares income denominated in
shares bonds others foreign
currencies
I. Balance at the end of the previous year 2499074661.00 - - - 37076846803.06 - -903626594.35 -453976318.25 34003994.41 1095980563.68 19045313519.75 58847592947.55 66722341481.26 125569934428.81
Add: Changes in accounting policies - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Business combination involving entities
under common control - - - - - - - - - - - - - -
Others - - - - - - - - - - - - - -
II. Balance at the beginning of the year 2499074661.00 - - - 37076846803.06 - -903626594.35 -453976318.25 34003994.41 1095980563.68 19045313519.75 58847592947.55 66722341481.26 125569934428.81
III. Changes in equity during the year 2233820.00 - - - 286135028.61 50559789.14 -654754643.10 -577018940.38 6070652.86 153556766.82 2912465059.36 2655146895.41 -66642549.97 2588504345.44
(I) Total comprehensive income - - - - - - -654754643.10 -577018940.38 - - 4516301317.16 3861546674.06 3487616955.45 7349163629.51
(II) Shareholders’ contributions of capital 2233820.00 - - - 286135028.61 50559789.14 - - - - - 237809059.47 56472428.06 294281487.53
1. Contribution by ordinary shareholders 2233820.00 - - - 39515503.24 - - - - - - 41749323.24 43561800.00 85311123.24
2. Contribution by holders of
other equity instruments - - - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -6138284.56 - - - - - - -6138284.56 -1909854.96 -8048139.52
4. Others - - - - 252757809.93 50559789.14 - - - - - 202198020.79 14820483.02 217018503.81
(III) Appropriation of profits - - - - - - - - - 153556766.82 -1603836257.80 -1450279490.98 -3609778395.68 -5060057886.66
1. Appropriation for surplus reserve - - - - - - - - - 153556766.82 -153556766.82 - - -
Including: Legal reserve - - - - - - - - - 153556766.82 -153556766.82 - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1450279490.98 -1450279490.98 -3554586317.66 -5004865808.64
3. Others - - - - - - - - - - - - -55192078.02 -55192078.02
(IV) Transfers within equity - - - - - - - - - - - - - -
1. Share capital increased by
capital reserve transfer - - - - - - - - - - - - - -
2. Share capital increased by surplus reserve
transfer - - - - - - - - - - - - - -
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - - - -
4. Changes arising from defined benefit plan
transferred to retained earnings - - - - - - - - - - - - - -
5. Transfer of other comprehensive income to
retained earnings - - - - - - - - - - - - - -
6. Others - - - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - 6070652.86 - - 6070652.86 -953537.80 5117115.06
1. Appropriation during the year - - - - - - - - 59210779.71 - - 59210779.71 58293123.14 117503902.85
2. Utilisation during the year - - - - - - - - -53140126.85 - - -53140126.85 -59246660.94 -112386787.79
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the year 2501308481.00 - - - 37362981831.67 50559789.14 -1558381237.45 -1030995258.63 40074647.27 1249537330.50 21957778579.11 61502739842.96 66655698931.29 128158438774.25
The accompanying notes form part of the financial statements.- 13 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
The Company's Statement of Changes in Shareholders' Equity
RMB
For the year ended 31 December 2025
Other equity instruments Including: Translation
Item difference of financial Share capital Preference perpetual Capital reserve Less: Treasury shares
Other comprehensive
others income
statements Specific reserve Surplus reserve Retained earnings Total
shares bonds denominated in foreign currencies
I. Balance at the end of the previous year 2501308481.00 - - - 37773833882.62 50559789.14 130414442.07 - - 1249537330.50 2285715457.11 43890249804.16
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - -
Others - - - - - - - - - - - -
II. Balance at the beginning of the year 2501308481.00 - - - 37773833882.62 50559789.14 130414442.07 - - 1249537330.50 2285715457.11 43890249804.16
III. Changes in equity during the year -19466296.00 - - - -347168990.94 -50559789.14 -21659508.89 - - - 221799268.78 -115935737.91
(I) Total comprehensive income - - - - - - -21659508.89 - - - 2061635965.96 2039976457.07
(II) Shareholders’ contributions of capital -19466296.00 - - - -347168990.94 -50559789.14 - - - - - -316075497.80
1. Contribution by ordinary shareholders 351400.00 - - - 5860358.48 - - - - - - 6211758.48
2. Contribution by holders of other equity instruments - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -877500.00 - - - - - - -877500.00
4. Others -19817696.00 - - - -352151849.42 -50559789.14 - - - - - -321409756.28
(III) Appropriation of profits - - - - - - - - - - -1839836697.18 -1839836697.18
1. Appropriation for surplus reserve - - - - - - - - - - -
Including: Legal reserve - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - -1839836697.18 -1839836697.18
3. Others - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - -
1. Share capital increased by capital reserve transfer - - - - - - - - - - -
2. Share capital increased by surplus reserve transfer - - - - - - - - - - -
3. Transfer of surplus reserve to offset losses - - - - - - - - - - -
4. Changes arising from defined benefit plan
transferred to retained earnings - - - - - - - - - - - -
5. Transfer of other comprehensive income
to retained earnings - - - - - - - - - - -
6. Others - - - - - - - - - - -
(V) Specific reserve - - - - - - - - - - -
1. Appropriation during the year - - - - - - - - - - -
2. Utilisation during the year - - - - - - - - - - -
(VI) Others - - - - - - - - - - -
IV. Balance at the end of the year 2481842185.00 - - - 37426664891.68 - 108754933.18 - - 1249537330.50 2507514725.89 43774314066.25
- 14 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2025
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
Prior Year
Other equity instruments Including: Translation
Item difference of financial Share capital Preference perpetual Capital reserve Less: Treasury shares
Other comprehensive
income statements Specific reserve Surplus reserve Retained earnings Total
shares bonds others denominated in foreign currencies
I. Balance at the end of the previous year 2499074661.00 - - - 37704543586.11 - 120520832.83 - - 1095980563.68 1999000567.57 43419120211.19
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - -
Others - - - - - - - - - - - -
II. Balance at the beginning of the year 2499074661.00 - - - 37704543586.11 - 120520832.83 - - 1095980563.68 1999000567.57 43419120211.19
III. Changes in equity during the year 2233820.00 - - - 69290296.51 50559789.14 9893609.24 - - 153556766.82 286714889.54 471129592.97
(I) Total comprehensive income - - - - - - 9893609.24 - - - 1890551147.34 1900444756.58
(II) Shareholders’ contributions of capital 2233820.00 - - - 69290296.51 50559789.14 - - - - - 20964327.37
1. Contribution by ordinary shareholders 2233820.00 - - - 39515503.24 - - - - - - 41749323.24
2. Contribution by holders of other equity instruments - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -6172572.05 - - - - - - -6172572.05
4. Others - - - - 35947365.32 50559789.14 - - - - - -14612423.82
(III) Appropriation of profits - - - - - - - - - 153556766.82 -1603836257.80 -1450279490.98
1. Appropriation for surplus reserve - - - - - - - - - 153556766.82 -153556766.82 -
Including: Legal reserve - - - - - - - - - 153556766.82 -153556766.82 -
Arbitrary accumulation fund - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1450279490.98 -1450279490.98
3. Others - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - - -
1. Share capital increased by capital reserve transfer - - - - - - - - - - - -
2. Share capital increased by surplus reserve transfer - - - - - - - - - - - -
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - -
4. Changes arising from defined benefit plan
transferred to retained earnings - - - - - - - - - - - -
5. Transfer of other comprehensive income to
retained earnings - - - - - - - - - - - -
6. Others - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - - - - -
1. Appropriation during the year - - - - - - - - - - - -
2. Utilisation during the year - - - - - - - - - - - -
(VI) Others - - - - - - - - - - - -
IV. Balance at the end of the year 2501308481.00 - - - 37773833882.62 50559789.14 130414442.07 - - 1249537330.50 2285715457.11 43890249804.16
The accompanying notes form part of the financial statements.- 15 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 joint-stock
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 services bonded logistics services and other businesses such as property development and
investment.The Company's and consolidated financial statements were approved by the Board of Directors on
1 April 2026.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises (hereinafter referred to
as "ASBE") issued by the Ministry of Finance. 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 31 December 2025 the Group had total current liabilities in excess of total current assets by
RMB 7384414975.47. As at 31 December 2025 the Group had available and unused credit
facilities and bonds amounting to RMB 49239851263.83 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 prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the consolidated and
Company's financial position as at 31 December 2025 and the consolidated and Company's
operating results consolidated and Company's shareholders’ equity and consolidated and
Company's cash flow for the year ended 31 December 2025.(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting year
The financial year of the Group is from 1 January to 31 December of the Gregorian calendar year.- 16 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
2. Operating cycle
Business cycle refers to the period from the purchase of assets for processing to the realization of
cash or cash equivalents. The Group is actually engaged in the principal operating activities of port
services bonded logistics services and other businesses such as property development and
investment.
3. Functional currency
The Company’s functional currency is Renminbi (hereinafter referred to as "RMB") and these
financial statements are presented in RMB. The Company and its domestic subsidiaries use RMB
as their bookkeeping base currency. The Company's overseas subsidiaries determine their
functional currency according to the currency in the primary economic environment in which they
operate. The Company adopts RMB to prepare its financial statements.
4. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for 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 recognised 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
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.- 17 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
4. Basis of accounting and principle of measurement - continued
Fair value measurements are categorized into Level 1 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety which are described as follows:
* Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
* Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the asset or liability either directly or indirectly; and
* Level 3 inputs are unobservable inputs for the asset or liability.
5. 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 5 million individually
Significant other receivables for which bad debt
provision is assessed on an individual basis The amount exceeds RMB 10 million individually
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 ≥2%
investments of the amount of total assets
Significant construction in progress The year-end carrying amount of an individual construction in progress ranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress ≥20% of
in progress the amount of construction in progress
Significant accounts payable aged more than 1 year The amount exceeds RMB 10 million individually
Significant advance payments received 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 30 million individually
Cash flows from significant investing activities The amount exceeds 0.5% of the amount of total assets individually
Significant non-wholly owned subsidiaries The amount of total revenue or total assets of subsidiaries exceeds 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
Significant joint ventures or associates equity investment accounts for ≥10% of the amount of total consolidated assets and in which the investment income recognised 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.- 18 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 by the combining party shall be measured at their respective carrying
amounts as recorded by the final controlling party in the consolidated financial statements at the
date of the combination. The difference between share of the carrying amount of the net assets
obtained and the carrying amount of the consideration paid for the combination (or total par value
of issued shares) 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 surplus reserve and retained
earnings in turn.Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred. The merger date is the date on which the combining party actually obtains
control over the combined party.
6.2 Business combinations not involving enterprises under common control
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. The intermediary expenses (fees in respect of auditing legal services
valuation and consultancy services etc.) and other general and administrative expenses attributable
to the business combination are recognised 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. The acquisition date refers to the date on which the acquirer actually obtains
control over the acquiree.- 19 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 - continued
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets after considering the impact of relevant deferred income tax the difference
is treated as an asset and recognised 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 recognises the remaining difference
immediately in profit or loss for the current period.
7. Goodwill
Goodwill arising from a business combination is measured at cost less accumulated impairment
losses and is presented separately in the consolidated financial statements. Goodwill shall be
subject to impairment testing at least at the end of each year.The impairment testing of goodwill shall be conducted in combination with the relevant assets
group or assets group combination. That is since the purchase date the book value of goodwill is
apportioned to the assets group or combination of assets groups that can benefit from the synergistic
effect of business combination in a reasonable way. If the recoverable amount of the assets group
or combination of assets groups containing apportioned goodwill is lower than its book value the
corresponding impairment loss is recognised. The amount of impairment loss shall first offset the
book value of goodwill apportioned to the assets group or assets group portfolio and then offset the
book value of other assets in proportion to the proportion of the book value of other assets other
than goodwill in the assets group or assets group portfolio.The recoverable amount is the higher of the net amount of the fair value of the assets minus the
disposal expenses and the present value of the estimated future cash flow of the assets.The impairment loss of goodwill shall be included in the current profit and loss when it occurs and
shall not be reversed in future accounting periods.- 20 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. Consolidated financial statements
The consolidation scope of consolidated financial statements is determined on the basis of control.Control exists when the investor has power over the investee; is exposed or has rights to variable
returns from its involvement with the investee; and has the ability to use its power over the investee
to affect its returns. The Group reassesses whether or not it controls an investee if facts and
circumstances indicate that there are changes in the above elements of the definition of control.Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary.For a subsidiary already disposed of by the Group the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated cash flow statement as appropriate.For subsidiaries acquired through a business combination involving enterprises not under common
control when preparing the consolidated financial statements of the current period the purchased
subsidiary will be included in the consolidation scope of the Company from the acquisition date on
the basis of the fair value of the identifiable assets and liabilities of the purchased subsidiary
determined on the acquisition date. 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 when preparing the
consolidated financial statements of the current period the book value of each assets and liability
of the consolidated subsidiary in the final controller's financial statements is taken as the basis 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.- 21 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. Consolidated financial statements - continued
The portion of subsidiaries' equity that is not attributable to the Company is treated as non-
controlling interests and presented as " non-controlling 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 non-controlling interests is presented as " non-controlling 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 non-controlling interests is presented as "
attributable to non-controlling interests " in the consolidated income statement under the line item
of "total comprehensive income".When the amount of loss for the period attributable to the non-controlling shareholders of a
subsidiary exceeds the non-controlling shareholders' portion of the opening balance of owners'
equity of the subsidiary the excess amount is still allocated against non-controlling interests.Acquisition of non-controlling 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 non-controlling interests are adjusted to reflect the changes
in their relative interests in the subsidiary. The difference between the amount by which the non-
controlling 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 surplus reserve and
retained earnings shall be offset in turn.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 recognised 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 the sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity less the share of the net assets of the parent company that should be
continuously calculated from the purchase date based on the original shareholding ratio is included
in the investment income of the current period when the control right is lost and at the same time
the goodwill is offset. Other comprehensive income associated with investment in the former
subsidiary is reclassified to investment income in the period in which control is lost.- 22 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. 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 recognised 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.
9. Joint arrangements
Joint venture arrangement refers to an arrangement jointly controlled by two or more participants.The joint venture arrangement of the Group has the following characteristics: (1) all participants
are bound by the arrangement; (2) Two or more participants exercise joint control over the
arrangement. None of the participants can control the arrangement alone and none of the
participants with joint control over the arrangement can prevent other participants or a combination
of participants from controlling the arrangement alone.Joint control refers to the common control over an arrangement according to relevant agreements
and the relevant activities of the arrangement must be agreed by the participants sharing the control
right before making decisions.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)
14.3.2 "Long-term equity investments accounted for using the equity method" for details.
- 23 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Joint arrangements - continued
When a group entity undertakes its activities under joint operations the Group as a joint operator
recognises 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.
10. 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.
11. Financial instruments
The Group recognises 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 recognised on the transaction date or assets sold are derecognised 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) 4. For financial
assets and financial liabilities at fair value through profit or loss transaction costs are immediately
recognised in profit or loss. For other financial assets and financial liabilities transaction costs are
included in their initial recognised amounts. Upon initial recognition of contract assets bills
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 (hereinafter referred to
as "Revenue Standards") the Group adopts the transaction price as defined in the Revenue
Standards for initial measurement.When there is a difference between the fair value of financial assets or financial liabilities initially
recognised and the transaction price if the fair value is not determined based on the quotation of
the same assets or liabilities in the active market or based on the valuation technology only using
observable market data no gains or losses will be recognised when the financial assets or financial
liabilities are initially recognised.- 24 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
The effective interest method is a method of calculating the amortised 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 book value of the financial asset or to
the amortised 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 amortised cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognised net of principal repaid plus or less the cumulative amortised
amount arising from amortisation of the difference between the amount initially recognised 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 amortised cost at fair value through other comprehensive income or at fair value
through profit or loss.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 amortised cost which include cash and
bank balances bills 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 bills receivable classified as at FVTOCI upon acquisition
are presented under receivables under 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.- 25 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
On initial recognition the Group may irrevocably designate non-trading equity instruments other
than contingent consideration recognised 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
* Related financial assets are derivatives. However the derivatives meeting the definition of
financial guarantee contract and those designated as effective hedging instruments are
excluded.Financial assets measured at fair value through profit or loss (hereinafter referred to as "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 amortised cost
and financial assets at FVTOCI are classified as financial assets at FVTPL.* Upon initial recognition the Group may irrevocably designate the financial assets at FVTPL
if doing so eliminates or significantly reduces accounting mismatch.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 amortised cost
Financial assets measured at amortised cost are subsequently measured at amortised cost using the
effective interest method. Gain or loss arising from impairment or derecognition is recognised in
profit or loss.- 26 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
11.1.1 Financial assets measured at amortised cost - continued
For financial assets measured at amortised cost the Group recognises interest income using
effective interest method. The Group calculates and recognises interest income through book value
of financial assets multiplying effective interest rate except for the following circumstances:
* For purchased or originated credit-impaired financial assets the Group calculates and
recognises the interest income based on amortised cost of the financial asset and the effective
interest rate through credit adjustment since initial recognition.* For financial assets that have not suffered from credit impairment but have become credit
impairment in subsequent periods the Group will calculate and determine their interest
income according to the amortised cost and effective interest rate of the financial assets in
subsequent periods. If the financial instruments no longer has credit impairment due to the
improvement of its credit risk in the subsequent period and this improvement can be related
to an event that occurs after the application of the above provisions the Group will calculate
and determine interest income by multiplying the actual interest rate by the book value of the
financial asset.
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 amortised 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 recognised in other comprehensive income and the cumulative gains or losses
previously recognised in other comprehensive income allocated to the part derecognised are
transferred and included in retained earnings. During the period in which the Group holds the non-
trading equity instruments revenue from dividends is recognised 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.- 27 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 recognised in
profit or loss.
11.2 Impairment of financial instruments
For financial assets at amortised 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 recognises the provision for
losses on the basis of expected credit loss (hereinafter referred to as "ECL").For all contract assets bills 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 recognises 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 recognises 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 recognises the provision for losses at an amount equivalent
to 12-month ECL. The increase or reversal of credit impairment for financial assets other than those
classified as at FVTOCI is recognised as impairment loss or gain and included in profit or loss for
the period. For financial assets classified as at FVTOCI the provision for bad debts is recognised
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 recognises 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
recognised as impairment gains in profit or loss for the period.- 28 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 amortised 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;
- 29 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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).- 30 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 credit loss of leases receivables on the basis of single assets and
determines the credit loss of related financial instruments on the basis of combination of cash at
bank and on hand bills receivable accounts receivable other receivables long-term receivables
etc. with impairment matrix. The Group divides financial instruments into different groups based
on common risk characteristics. Common credit risk characteristics adopted by the Group include:
type of financial instruments credit risk rating type of collateral initial recognition date remaining
contract period industry of the debtor geographical location of the debtor value of collateral
relative to financial assets etc.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 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 book value 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 recognised 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-off 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 book value of the
financial assets which constitutes derecognition of relevant financial assets.- 31 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
The Group will derecognise a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset and it retains control of the financial asset the Group will recognise the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognise an
associated liability. The Group will measure relevant liabilities as follows:
* For transferred financial assets carried at amortised cost the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortised cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortised 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 recognised
in other comprehensive income is recognised in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI cumulative gains or losses
previously recognised in other comprehensive income are transferred out and included in retained
earnings.- 32 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 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 recognised and
the part that is derecognised 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 derecognised on the date of
derecognition; and (2) the sum of the consideration received for the part derecognised and any
cumulative gain or loss allocated to the part derecognised which has been previously recognised in
other comprehensive income is recognised in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI cumulative gains or losses
previously recognised 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 recognise the transferred financial asset in its entirety. The consideration
received from transfer of assets is recognised as a financial liability upon receipt.
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.- 33 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
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 recognised in profit or loss.For a financial liability designated as at FVTPL the amount of changes in fair value of the financial
liability that are attributable to changes in the credit risk of that liability shall be presented in other
comprehensive income while other changes in fair value are included in profit or loss for the current
period. Upon the derecognition of such financial liability the accumulated amount of changes in
fair value that are attributable to changes in the credit risk of that liability which was recognised in
other comprehensive income is transferred to retained earnings. Any dividend or interest expense
on the financial liabilities is recognised 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 recognised 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.- 34 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
11.4.1.2 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 amortised cost with gain or loss arising from derecognition or
amortisation recognised 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 amortised cost but the
changes in contractual cash flows the Group will recalculate the carrying amount of the financial
liability with relevant gain or loss recognised 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 amortisation during the remaining
term of the modified financial liability.
11.4.1.3 Financial guarantee contracts
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 are measured at the higher of amount of loss provision; and the
amount initially recognised less cumulative amortisation amount determined based on the revenue
standards.- 35 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
11.4.2 Derecognition of financial liabilities
The Group derecognises 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 derecognises a financial liability or a part of it it recognises the difference between
the carrying amount of the financial liability (or part of the financial liability) derecognised 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 recognised as changes in equity. The Group's issuance of
equity instruments is recorded in the owner's equity at the actual issue price and the relevant
transaction costs are deducted from the owner's equity (capital reserve). If the capital reserve is
insufficient to offset the surplus reserve and retained earnings are offset in turn. The consideration
and transaction costs paid for repurchasing the Company's equity instruments reduce the owner's
equity.The Group recognises the distribution to holders of the equity instruments as distribution of profits
and dividends paid do not affect total amount of shareholders' equity.- 36 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 recognised 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 recognised. 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.- 37 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 amortised 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 amortised 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 amortised cost is reclassified as a financial asset at fair value through
profit or loss by (hereinafter referred to as "FVTPL") 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 recognised in profit or loss for the period.Where a financial asset at amortised cost is reclassified as a financial asset at fair value through
other comprehensive income (hereinafter referred to as "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 recognised in other comprehensive income.Where a financial asset at FVTOCI is reclassified as a financial asset at amortised cost by the Group
the accumulated gains or losses previously recognised 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
amortised cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.- 38 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 recognised in other comprehensive income are transferred to profit or loss for the
period.Where a financial asset at FVTPL is reclassified as a financial asset at amortised cost by the Group
the fair value at the date of reclassification is determined as the new book value.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 losses or
gains.
12.2 Categories of portfolios for which provision for bad debts 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.- 39 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 provision for bad debts 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
rating Basis for determining portfolio 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.B The customers may have overdue payment based on historical experience but they can make repayments. 0.10-0.30
C The evidence indicates that the overdue credit risks of the customers are significantly increased and there is probability of default on payment. 0.30-50.00
12.3 Determination criteria for provision for bad debts on an individual basis
Internal credit
ratings Basis to determine the provision for bad debts on an individual basis
Expected average
loss ratio (%)
There is evidence showing that the receivables from customers are
D impaired or that the customers are experiencing significant financial difficulties and thus the receivables will be irrecoverable in the 50.00-100.00
foreseeable future.
13. Inventories
13.1 Categories of inventories measurement method of cost of inventories inventory count
system amortisation method of low-value consumables and packaging materials
13.1.1 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.- 40 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Inventories - continued
13.1 Categories of inventories measurement method of cost of inventories inventory count
system amortisation method of low-value consumables and packaging materials -
continued
13.1.2 Measurement method of cost of inventories
Cost of inventories recognised is calculated using the first-in-first-out and weighted average method
at the end of the month.
13.1.3 Inventory count system
The perpetual inventory system is perpetual inventory system.
13.1.4 Amortisation method for low cost and low-value consumables items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortised using the
immediate write-off method.
13.2 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.- 41 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments
14.1 Basis for determining joint control and significant influence over investee
Control means that the investor has the power over the investee enjoys variable returns by
participating in the relevant activities of the investee and has the ability to use the power over the
investee to affect its return amount. Joint control refers to the common control over an arrangement
according to relevant agreements and the relevant activities of the arrangement must be agreed by
the participants sharing the control right before making decisions. Significant influence refers to
having the right to participate in the decision-making of the investee's financial and operating
policies but not being able to control or jointly control the formulation of these policies with other
parties. When determining whether it is possible to control or exert significant influence on the
investee the convertible corporate bonds executable warrants and other potential voting rights of
the investee held by the investor and other parties have been considered.
14.2 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 recognised 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 surplus reserve and retained earnings shall be offset in
turn. 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
surplus reserve and retained earnings shall be offset in turn.- 42 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.2 Determination of initial investment cost - continued
For a long-term equity investment acquired through business combination not involving enterprises
under common control the initial investment cost of the long-term equity investment acquired is
the cost of acquisition.The expenses incurred by the acquirer in respect of auditing legal services valuation and
consultancy services and other associated general and administrative expenses attributable to the
business combination are recognised 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.
14.3 Subsequent measurement and recognition of profit or loss
14.3.1 Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in 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 recognised in the period in accordance
with the attributable share of cash dividends or profit distributions declared by the investee.
14.3.2 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 recognised in profit or loss for the period and the cost of the long-term equity
investment is adjusted accordingly.- 43 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.3 Subsequent measurement and recognition of profit or loss - continued
14.3.2 Long-term equity investments accounted for using the equity method - continued
Under the equity method the Group recognises 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 other comprehensive incomed and profit
distribution are correspondingly adjusted to the carrying amount of the long-term equity investment
and recognised in capital reserve. The Group recognises 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 adjustments. When the investee's accounting policies and accounting period are
inconsistent with those of the Group the Group recognises 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 and assets invested or sold which do not
constitute a business are eliminated based on the proportion attributable to the Group and then
investment gains or losses are recognised. 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.When recognising the net loss of the investee that should be shared the book value of the long-term
equity investments and other long-term interests that substantially constitute the net investment in
the investee should be written down to zero. In addition if the Group has incurred obligations to
assume additional losses a provision is recognised 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 recognising its share of those profits only after its share of the profits
exceeds the share of losses previously not recognised.- 44 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.4 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 recognised 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 recognised
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 recognised 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 recognised 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 recognised 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 recognised in
profit or loss for the period. Other comprehensive income recognised using the equity method or in
accordance with the standards for the recognition and measurement of financial instruments before
obtaining 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 recognised 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. 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.- 45 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.4 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 recognised in profit or
loss for the period. Other comprehensive income previously recognised 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
recognised as other comprehensive income before the loss of control and transferred to profit or
loss for the period when the control is lost.
15. 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 recognised
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:
Category Depreciation life (year) Residual value rate (%) Annual depreciation 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 derecognised upon disposal or when the investment property is
permanently withdrawn from use and it is estimated that no economic benefits can be obtained from
its disposal the investment properties is derecognised.- 46 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Investment properties - continued
When an investment property is sold transferred retired or damaged the Group recognises the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
16. 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 recognised 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 taking into account the impact of abandonment cost.Upon being restructured into a stock company the fixed assets initially contributed by the state-
owned shareholders are recognised 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 derecognised. Other subsequent expenditures are recognised 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:
Category Depreciation life Residual value Annual (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
and fixture and other equipment 3-20 5.00 4.75-31.67
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 derecognised. 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 recognised in profit or loss for the period.- 47 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Fixed assets and depreciation - continued
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.
17. 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.- 48 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Intangible assets
18.1 Intangible assets
Intangible assets include land use rights terminal operating rights data resources 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 recognised 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 minus the expected net residual value and the accumulated amount of impairment
provision is amortised over its estimated useful life by using straight-line method. The terminal
operating rights under the output method are amortised 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 amortisation. An intangible asset with
indefinite useful life will not be amortised.The amortisation method useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortisation method Useful life (year) and recognition Residual value (%)
From the date of the land transfer it
Land use rights Straight-line method is amortised using the straight-line -
method over the land transfer period
Output method - it is amortised over
periods according to the ratio of the
estimated minimum guaranteed
throughput to the estimated
Terminal operating minimum guaranteed total
right Output/Straight-line method throughput; straight-line method - it - is amortised 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 amortised using the straight-
Data resources and 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 amortisation
method at the end of the year and makes adjustments when necessary.- 49 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Intangible assets - continued
18.2 Expenditures on research and development
Expenditure during the research phase is recognised 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 recognised as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognised in profit or loss for the period:
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits including the evidence of the existence of a market for the output of the intangible
asset or the intangible asset itself or if it is to be used internally the usefulness of the
intangible asset.
(4) the availability of adequate technical financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.If the expenditures cannot be distinguished between the research phase and development phase the
Group recognises all of them in profit or loss for the 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.- 50 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
19. Long-term deferred expenses
Long-term deferred expenses refer to various expenses that have been incurred but should be borne
in the current and subsequent periods with an apportionment period of more than one year. Long-
term deferred expenses are amortised using the straight-line method over the expected periods in
which benefits are derived.
20. Impairment of non-financial assets other than goodwill
On each balance sheet date the Group checks whether there is any sign of possible impairment of
long-term equity investments investment properties measured by cost model fixed assets
construction in progress right-of-use assets long-term deferred expenses and intangible assets
whose service life is determined. 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 or assets group 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.The present value of the estimated future cash flow of the assets is determined according to the
estimated future cash flow generated during the continuous use and final disposal of the assets and
the amount discounted which is determined by selecting an appropriate pre tax discount rate.If the recoverable amount of an asset is less than its carrying amount the deficit is accounted for as
an impairment losses and is recognised in profit or loss.Once the impairment losses of above-mentioned assets is recognised it shall not be reversed in any
subsequent period.When determining the impairment losses of assets related to contract costs first determine the
impairment losses of other assets related to contracts that are recognised in accordance with other
relevant accounting standards for business enterprises; Then if the book value of the assets related
to the contract costs is higher than the difference between the following two items the excess part
of the provision for impairment shall be recognised as impairment losses: (i) the Group's expected
remaining consideration for the transfer of goods or services related to the assets; (ii) Estimate the
cost to be incurred for the transfer of the relevant goods or services.- 51 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Impairment of non-financial assets other than goodwill - continued
Except for the impairment losses related to the contract costs once the above impairment losses is
recognised it will not be reversed in future accounting periods. After the provision for impairment
of assets related to contract costs has been made if the factors of impairment in previous periods
have changed resulting in the above two differences are higher than the book value of the assets
the provision for impairment of the assets that has been made is reversed and included in the current
profits and losses but the book value of the assets after reversal does not exceed the book value of
the assets on the reversal date assuming that no provision for impairment is made.
21. Provisions
Provisions are recognised when the Group has a present obligation related to a contingency it is
probable result in an outflow of economic benefits to settle the obligation and the amount of the
obligation can be measured reliably.The amount recognised 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.If all or part of the expenses required to settle the estimated liabilities are expected to be
compensated by a third party the compensation amount will be separately recognised as assets
when it is basically determined that it can be received and the recognised compensation amount
will not exceed the book value of the estimated liabilities.
22. Employee benefits
22.1 Short-term employee benefits
Employee benefits refers to various forms of 'remuneration' or compensation provided by the Group
for the services provided by employees or the termination of labor relations. Employee benefits
includes short-term compensation post employment benefit termination benefits and other long-
term employee benefits.Except for compensation for termination of labor relationship with employees the Group
recognises employee benefits payable as liability during the accounting period when employees
provide services.- 52 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.1 Short-term employee benefits - continued
The Group shall participate in the employee social security system established by government
agencies in accordance with regulations including basic endowment insurance medical insurance
housing provident fund and other social security systems and the corresponding expenses shall be
included in relevant asset costs or current 'profit and loss' when incurred.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 recognised as liabilities with a corresponding charge to
profit or loss for the period or in the costs of relevant assets according to the beneficiaries of services
provided by employees in the accounting period in which employees provide services to the Group.Staff welfare expenses incurred by the Group are recognised 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 recognised 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.- 53 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.2 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 recognised as liabilities and included in profit
or loss for the period or costs of related assets.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.- 54 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.2 Post-employment benefits - continued
Service costs and net interest of net liabilities and net assets of defined benefit plans are recognised
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 recognised 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 recognised as a net defined benefit plan liability
or net asset.
22.3 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 recognised 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 has a detailed and formal restructuring plan involving
the payment of dismissal benefit; In addition the restructuring plan has been implemented or the
main contents of the plan have been notified to the affected parties so that all parties have formed
a reasonable expectation that the Group will implement the restructuring.
22.4 Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except for short-term benefits
post-employment benefits and termination benefits.Other long-term employee benefits that qualify as defined contribution plans are treated in
accordance with the relevant provisions of the defined contribution plans mentioned above except
that the net liability or net asset for other long-term employee benefits is recognised 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
recognised 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.- 55 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.4 Other long-term employee benefits - continued
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 have not reached the retirement age regulated by the country and
are approved to quit the job voluntarily. For internal retirement benefits the internal retirement
benefits the Group is expected to pay during the period from the date when employees stop
providing services to the date of normal retirement are recognised 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.
23. 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
recognised 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.
24. Bonds payable
The Group's bonds payable are measured at fair value when initially recognised and relevant
transaction costs are included in the initially recognised amount. It is subsequently measured at
amortised cost.The difference between the bond issue price and the total face value of the bonds is regarded as the
bond premium or discount which is amortised at the time of interest accrual according to the
effective interest method during the duration of the bonds and is treated according to the principle
of handling borrowing costs.
25. Preference shares perpetual bonds and other financial instruments
The actual issue price for the issuance of equity instruments is included in shareholders' equity after
deducting relevant transaction costs from shareholders’ equity (capital reserve). If the capital
reserve is insufficient to offset surplus reserve and retained earnings will be offset in turn. The
consideration and transaction costs paid for repurchasing the Group's equity instruments reduce
shareholders’ equity.- 56 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Preference shares perpetual bonds and other financial instruments - continued
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.
26. Revenue recognition
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business
Revenue refers to the total inflow of economic benefits formed in the daily activities of the Group
which will lead to the increase of owner's equity and has nothing to do with the capital invested by
owners. The Group's revenue is mainly from port business bonded logistics business and other
businesses.The Group recognises 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. 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. The transaction price
recognised by the Group does not exceed the amount of accumulated recognised revenue that is
unlikely to be significantly reversed when the relevant uncertainty is eliminated.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 performed within a certain period or at a certain time point. It is a performance
obligation satisfied during a period of time and the Group recognises 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 recognised at a point in time when the customer obtains control over
the relevant goods or services.- 57 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
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 recognised based on the amount of cost that is expected to be
compensated based on the cost already incurred until the progress of performance is reasonably
determined.Contract assets refer to the right that the Group has transferred goods or services to customers and
is entitled to receive consideration and the right depends on other factors other than the passage of
time. Please refer to Note (IV) 11 for details of the accounting policies for the impairment of
contract assets. The Group's unconditional (that is only depending on the passage of time) right to
collect consideration from customers is separately listed as receivables.Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for
consideration received or receivable from the customer.Contract assets and contract liabilities under the same contract are presented in net amount.If there are two or more of performance obligations included in the contract at the inception of the
contract the Group allocates the transaction price to each single performance obligation based on
the proportion of stand-alone selling price of goods or services promised in each stand-alone
performance obligation. However if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not the whole) performance
obligations in the contract the Group will allocate the contract discount or variable consideration
to relative one or more performance obligations. Stand-alone selling price refers to the price of a
single sale of goods or services. If the stand-alone selling price cannot be observed directly the
Group estimates the stand-alone selling price through comprehensive consideration of all relative
information that can be reasonably acquired and maximum use of observable inputs.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 recognised revenue which is unlikely to be significantly reversed
when relevant uncertainty is eliminated. At each balance sheet date the Group re-estimates the
amount of variable consideration which should be included in transaction price.- 58 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.1 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.For any consideration payable to a customer in a contract unless such payment is made in exchange
for a distinct good or service obtained from the customer the Group accounts for the consideration
payable as a reduction of the transaction price. The resulting reduction in revenue is recognised at
the later of when the related revenue is recognised and when the Group pays or promises to pay the
consideration.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 amortised 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 recognises revenue in the gross amount of consideration received or
receivable. Otherwise the Group is an agent and recognises 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 recognised as a liability and then transferred to revenue when the related
performance obligation has been satisfied. When the Group's advance payments received are not
required to be refunded and it is probable that the customer will waive all or part of its contractual
rights the Group recognises 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.- 59 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
For port business the revenue from the handling of containers and bulk cargos is recognised over
time based on the progress of completed services and the revenue from the storage of containers
and bulk cargos is recognised on a straight-line basis over the period of storage.For bonded logistics business the revenue is recognised 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.
26.2 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.
26.3 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 recognised as an asset. If the amortisation period
of such asset is less than one year it is recognised 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.
26.4 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 recognises 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 amortised on a basis that is consistent with the revenue recognition of the
goods or services to which the asset relates and recognised in profit or loss for the period.- 60 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Government grants
Government grants refer to monetary assets and non-monetary assets obtained by the Group from
the government free of charge. Government grants are recognised when they can meet the
conditions attached to government grants and can be received.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 recognised immediately in profit or loss for the
period.
27.1 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 recognised as deferred income and included in profit or
loss by stages over the useful life of the related asset in a reasonable and systematic way. A
government grant measured at a nominal amount is recognised immediately in profit or loss in the
current period. Where the relevant asset is sold transferred retired or damaged prior to the end of
its useful life the related undistributed deferred income is transferred to profit or loss of the disposal
period.
27.2 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 recognised as deferred income and
recognised in profit or loss for the period in which the related costs or losses are recognised; If the
grant is a compensation for related expenses or losses already incurred the grant is recognised
immediately in profit or loss.A government grant related to the Group's daily activities is recognised in other income; a
government grant not related to the Group's daily activities is recognised in non-operating income.- 61 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. 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
recognised 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 recognised in profit or loss for the period in which they are incurred.- 62 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Income tax
The income tax expenses include current income tax and deferred income tax.
29.1 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.
29.2 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 recognised as assets or liabilities
and their tax base that can be determined according to tax laws deferred tax assets and liabilities
are recognised using the balance sheet liability method.Deferred income tax are generally recognised for all taxable temporary differences. Deferred tax
assets for deductible temporary differences are recognised 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 recognised.For deductible losses and tax credits that can be carried forward deferred tax assets are recognised
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.- 63 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Deferred tax assets/ deferred tax liabilities - continued
29.2 Deferred tax assets and deferred tax liabilities - continued
Deferred tax liabilities are recognised 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 recognised
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 recognised in profit or loss for the period except
when they arise from transactions or events that are directly recognised in other comprehensive
income or shareholders' equity in which case they are recognised 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.
29.3 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.- 64 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies
30.1 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 recognised in profit or loss for the period
except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign
currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset
during the capitalization period; (2) exchange differences related to hedging instruments for the
purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3)
exchange differences arising from changes in the carrying amounts (other than the amortised cost)
of monetary items at fair value through other comprehensive income are recognised as other
comprehensive income.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 recognised 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. 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 recognised in profit or loss or as other comprehensive income.- 65 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
30.2 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 translation differences arising from translation of
foreign currency financial statements items in retained earnings and other comprehensive income
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; retained earnings
at the beginning of the year are the converted year-end retained earnings of the previous year. The
year-end retained earnings are calculated and presented in accordance with the items of profit
distribution after conversion. The difference between the translated assets and the aggregate of
liabilities and shareholders' equity items is recognised 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 amount at the beginning of the year 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 difference of financial statements denominated in
foreign currencies related to this disposed part are re-attributed to non-controlling interests and are
not recognised 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 difference of financial statements denominated in foreign currencies is
reclassified to profit or loss.- 66 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. 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.On the contract start date the Group assesses whether the contract is a lease or includes a lease. If
one party in the contract transfers the right to control the use of one or more identified assets within
a certain period in exchange for consideration the contract is a lease or includes a lease. Unless the
contract terms and conditions change the Group will not re-evaluate whether the contract is a lease
or includes a lease.
31.1 The Group as lessee
31.1.1 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.
31.1.2 Right-of-use assets
Except for short-term leases and leases of low-value assets the Group recognises 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.- 67 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as lessee - continued
31.1.3 Lease liabilities
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 recognised 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 recognise 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 leases
payments 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 the revised discount rate is applied.- 68 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as lessee - continued
31.1.4 Short-term leases and leases of low-value assets
The Group elects not to recognise 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
lower when it is new. For short-term leases and leases of low-value assets the Group recognises
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.
31.1.5 Lease modifications
A lease modification should be accounted for as a separate lease if both of the following apply:
* the modification increases the scope of the lease by adding the right to use one or more
underlying assets.* the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price
according to the circumstances of the particular contract.For a lease medication that is not accounted for as a separate lease at the effective date of the lease
modification the Group should allocate the consideration in the modified contract determine the
lease term of the modified lease and remeasure the lease 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 recognised 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.- 69 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor
31.2.1 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.
31.2.2 Classification of leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership. All other leases are classified as operating leases.
31.2.3 The Group as lessor under operating leases
The Group recognises 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 recognised in profit or loss for the period when they are actually
incurred.- 70 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor - continued
31.2.4 The Group as lessor under finance leases
At the commencement date the Group recognises a finance lease receivable at the amount equal to
the net lease investment with assets under finance lease terminal recognised. 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 recognised in profit or loss when
they are actually incurred.Interest income for each period over the lease term is calculated and recognised by the Group at a
fixed periodic rate.
31.2.5 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.- 71 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor - continued
31.2.6 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.
31.3 Sale and leaseback transactions
31.3.1 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 recognise 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.- 72 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. 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 recognised in profit or loss for the period and transferred to
specific 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 specific
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
specific reserve with the accumulated depreciation recognised at the same amount. Depreciation
will not be made in the future period on such fixed assets.
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
recognised as the cost at initial recognition; For the asset given up at derecognition the difference
between the fair value and the carrying amount is recognised 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 recognised 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 recognised 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 recognised as the cost of at initial recognition. For the
asset given up at derecognition no profit or loss is recognised.- 73 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies 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.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 recognised in the
current period; changes which not only affect the current but the future periods should be recognised
in the current and future periods.
1. Key assumptions and uncertainties used in important judgments and accounting
estimates
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:
1.1 Goodwill impairment
The book value of goodwill on 31 December 2025 is RMB 6176416050.77. The Group will
conduct impairment testing on goodwill at least annually. For the purpose of impairment testing
the recoverable amount of each assets group and combination of assets groups that generate
goodwill of the Group is determined by fair value less estimated disposal expenses and by the
present value of estimated future cash flows which involve the judgment of management.
1.2 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 recognised. If the profits to be actually distributed in future years are more or less than those
expected corresponding deferred tax liabilities will be recognised 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 recognised 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 recognised
or reversed in profit or loss for the period in which they are actually incurred.- 74 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
1. Key assumptions and uncertainties used in important judgments and accounting
estimates - continued
1.3 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 amortisation or write off or eliminate the technically
obsolete fixed assets or intangible assets.(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
There are no significant changes in accounting policies or accounting estimates of the Group this
year.- 75 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
Enterprise income tax Taxable income 8.25%-34% (Note 1) Dividend income tax 5%10% (Note 2)
Income from sale of goods 9%13%
Income from transportation loading and
Value-added tax (Note 3) unloading business and part of modern 6%
(hereinafter referred to as service industries
"VAT") Income from sale of real estate property
management lease of real estate etc. 3% 5% 9%
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
construction tax VAT paid 1%-7%
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 1-12 per square meter
Amount of pollution equivalents of the
Environmental protection tax taxable air pollutants converted based on the RMB 1.2-1.8 per pollution
quantity of pollutions discharged equivalent
- 76 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 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 Participa??es S.A. (hereinafter referred
to as "TCP") an overseas subsidiary of the Group and Colombo International Container
Terminals Limited (hereinafter referred to as “CICT”) to the local government.
2. Tax preference and approval documents
Certain subsidiaries of the Group in China are recognised as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. Some of
Group's subsidiaries inside of China may pay corporate income tax at the rate of 15% according to
the preferential policies of Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation
Zone.- 77 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
2. Tax preference and approval documents - continued
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.Some subsidiaries of the Group outside China can reduce or exempt corporate income tax according
to relevant local tax policies.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.As approved by State Taxation Administration Shenzhen Qianhai Shenzhen-Hong Kong Modern
Service Industry Cooperation Zone Taxation Bureau (formerly 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 (excluding warehousing
services and delivery services) provided to overseas enterprises.(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item Closing Balance Opening Balance
Cash 191636.31 457486.90
Bank deposits 10403337125.34 11769350938.86
Other cash and bank balances 238129183.87 114600721.02
Cash deposited in the finance company 4733188415.27 4745991554.35
Total 15374846360.79 16630400701.13
Including: Total amount of funds deposited overseas 6289654047.38 5449122430.53
- 78 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 at the end of the year amounted to RMB 42029709.64 (31
December 2024 : RMB 35470534.89).Note 2: Cash deposited in the finance company included the interest receivable amounting to
RMB 14222500.39 (31 December 2024 : RMB 35221381.65).Note 3: As of the year-end other cash and bank balances included term deposits amounting to
RMB 30000000.00 that are unrestricted and have maturities exceeding three months. (31
December 2024 : none).Note 4: Restricted use of cash at bank and on hand at the end of the year.Item Closing Balance Opening Balance
Interest receivable 56252210.03 70691916.54
Performance bond 41023738.72 41064199.70
Litigation frozen funds 3000000.00 1826085.98
Guarantee deposit 200000.00 200000.00
ETC card frozen funds 12750.00 12750.00
Bill deposit - 1536194.00
Total 100488698.75 115331146.22
2. Financial assets held for trading
Item Closing Balance Opening Balance
Financial assets classified as at FVTPL 7578824365.75 5685135472.01
Including: Structured deposits 7578824365.75 5685135472.01
Total 7578824365.75 5685135472.01
3. Bills receivable
(1) Category of bills receivable
Category Closing Balance Opening Balance
Bank acceptance 122029884.15 263127883.63
Commercial acceptance 29000000.00 7000000.00
Total 151029884.15 270127883.63
Note: For the year ended 31 December 2025 no provision for bad debts of bills 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 31 December 2025 the Group has no bills receivable pledged.
- 79 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
3. Bills receivable - continued
(3) As at 31 December 2025 bills receivable endorsed or discounted by the Group and not yet
due on the balance sheet date.Amount Unrecognised
Item derecognised at amount at the end
the end of the year of the year
Bank acceptance 21462114.63 32870944.50
(4) As at 31 December 2025 the Group has no bills transferred to accounts receivable due to
the drawer's failure to perform.
(5) The Group has no bills receivable written off for the year ended 31 December 2025.
4. Accounts receivable
(1) Overall situation of accounts receivable
Category Closing Balance Opening Balance
Accounts receivable 1362653229.32 1282371828.87
Less: Provision for bad debts 65486371.62 88963445.09
Total 1297166857.70 1193408383.78
(2) Aging analysis of accounts receivable
Closing Balance Opening Balance
Aging Book value Proportion Provision for Book value Proportion Provision for (%) bad debts (%) bad debts
Within 1 year
(Including 1 year) 1286427749.56 94.40 11648068.41 1184171645.45 92.34 3052874.64
1-2 years
(Including 2 years) 20966190.64 1.54 4671448.93 25773736.31 2.01 15217006.15
2-3 years
(Including 3 years) 22842354.51 1.68 17333429.71 18788751.53 1.47 17375034.32
More than 3 years 32416934.61 2.38 31833424.57 53637695.58 4.18 53318529.98
Total 1362653229.32 100.00 65486371.62 1282371828.87 100.00 88963445.09
- 80 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(3) Disclosure of accounts receivable by category
Closing Balance Opening Balance
Item Book value Provision for bad debts Book value Provision for bad debts
Percentage Proportion Carrying amount Percentage Proportion Carrying amount
Reason for provision
Value (%) Value (%) Value (%) Value (%)
Accrued according to
A 816089512.92 59.89 220906.31 0.03 815868606.61 736270226.13 57.41 384388.87 0.05 735885837.26 the expected loss rate
of each rating
Accrued according to
B 405297310.13 29.74 872676.19 0.22 404424633.94 370318170.34 28.88 631601.25 0.17 369686569.09 the expected loss rate
of each rating
Accrued according to
C 78476799.95 5.76 4725227.39 6.02 73751572.56 84232990.43 6.57 1488846.56 1.77 82744143.87 the expected loss rate
of each rating
D 62789606.32 4.61 59667561.73 95.03 3122044.59 91550441.97 7.14 86458608.41 94.44 5091833.56 Low probability of recovery
Total 1362653229.32 100.00 65486371.62 4.81 1297166857.70 1282371828.87 100.00 88963445.09 6.94 1193408383.78 — —
Including: Provision for bad debts assessed on an individual basis at the end of the year
Closing Balance
Name Book value Provision for bad debts Expected credit loss Reason for provision rate (%)
Client 1 14166889.98 14166889.98 100.00 Low probability of recovery
Client 2 6387379.34 6387379.34 100.00 Low probability of recovery
Client 3 5700298.86 5700298.86 100.00 Low probability of recovery
Client 4 4828983.86 4828983.86 100.00 Low probability of recovery
Client 5 3792704.25 3790012.45 99.93 Low probability of recovery
Others 27913350.03 24793997.24 88.82 — —
Total 62789606.32 59667561.73 95.03 — —
- 81 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(4) For the year ended 31 December 2025 the Group has no significant provision for bad debts
recovered or reversed this year.
(5) Accounts receivable written off this year
Name of Procedures Arising from
entity Nature Amount Reason for write-off performed related party transactions or not
Client 6 Service fees 24955108.44 Confirmed as irrecoverable Yes No
Client 7 Service fees 6237239.55 Confirmed as irrecoverable Yes No
Client 8 Service fees 1590646.16 Confirmed as irrecoverable Yes No
Total — — 32782994.15 — — — — — —
(6) The top five balances of accounts receivable at the end of the year classified by debtor
Name of Relationship Proportion of the
entity with the Book value Aging
Provision for bad
Group debts
amount to the total
accounts receivable (%)
Client 9 Third party 332580919.70 Within 1 year1-2 years2-3years 2721810.79 24.41
Client 10 Third party 53575185.60 Within 1 year 1324615.32 3.93
Client 11 Third party 53374060.50 Within 1 year1-2 years 37576.95 3.92
Client 12 Third party 45701172.74 Within 1 year 18877.32 3.35
Client 13 Third party 44222826.59 Within 1 year 28530.89 3.25
Total —— 529454165.13 —— 4131411.27 38.86
- 82 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
5. Receivables under financing
(1) Classification of receivables under financing
Item Closing Balance Opening Balance
Bank acceptance measured at fair value 114680738.25 -
(2) As at 31 December 2025 the Group has no pledged receivables under financing.
(3) At the end of the year there is no Company's receivables under financing that have been
endorsed or discounted and have not yet matured at the balance sheet date.
6. Prepayments
(1) Aging analysis of prepayments
Closing Balance Opening Balance
Aging Book value Impairment Book value Impairment
Value Proportion provision (%) Value
Proportion provision
(%)
Within 1 year (including 1 year) 79429482.24 91.21 - 58397947.01 98.69 -
1-2 years (including 2 year) 7288415.34 8.37 4260618.26 620707.85 1.05 -
2-3 years (including 3 year) 301519.63 0.35 - 8000.00 0.01 -
More than 3 years 60400.00 0.07 - 150462.36 0.25 -
Total 87079817.21 100.00 4260618.26 59177117.22 100.00 -
(2) As at 31 December 2025 the Group has no significant prepayments aged more than one
year.
(3) The top five balances of prepayments at the end of the year
Name of entity Closing Balance Proportion in total Provision for prepayments(%) bad debts
Supplier 1 12141359.50 13.94 -
Supplier 2 5778006.01 6.64 -
Supplier 3 3663263.21 4.21 -
Supplier 4 3423600.00 3.93 -
Supplier 5 3126654.88 3.59 -
Total 28132883.60 32.31 -
- 83 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables
7.1 Presentation of other receivables
Item Closing Balance Opening Balance
Dividends receivable 576943449.36 554387723.94
Other receivables 435711829.28 612111619.96
Total 1012655278.64 1166499343.90
7.2 Dividends receivable
(1) Presentation of dividends receivable by aging
Name of investee Closing Balance Opening Reason for non-
Whether there is
Balance recovery impairment and its judgment basis
Dividends receivable with an aging within 1 year 467505525.56 436240220.68 — — — —
Including: — — — — — — — —
Shanghai International Port (Group) Co. Ltd.(hereinafter referred to as "Shanghai Port Group") 326565642.25 326565642.25 — — No
Qingdao Port Dongjiakou Ore Terminal Co. Ltd. 68175602.27 - — — No
China Nanshan Development (Group) Incorporation
(hereinafter referred to as "Nanshan Group") 37014000.00 74028000.00 — — No
Euro-Asia Oceangate S.à r.l. 28485290.83 23881469.17 — — No
PORT OF NEWCASTLE INVESTMENTS
(PROPERTY HOLDINGS) PTY LIMITED 7264990.21 - — — No
China Ocean Shipping Agency Shenzhen Co. Ltd. - 10575000.00 — — — —
Others - 1190109.26 — — — —
Dividends receivable with an aging of more than one
year 110015444.77 118702445.93 — — — —
Including: — — — — — — — —
Relevant procedures are
Nanshan Group 74028000.00 74028000.00 being handled and past dividends are being paid No
in succession
Zhanjiang Merchants Port City Investment Co. Ltd.(hereinafter referred to as "Merchants Port City") 35771044.77 38809044.77 Lack of funds No
COSCO Logistics (Zhanjiang) Co. Ltd. - 5649001.16 — — No
Others 216400.00 216400.00 Lack of funds No
Sub-total 577520970.33 554942666.61 — — — —
Less: Provision for bad debts 577520.97 554942.67 — — — —
Total 576943449.36 554387723.94 — — — —
- 84 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Closing Balance Opening Balance
Aging Book value Proportion Provision for bad Book value Proportion Provision for (%) debts (%) bad debts
Within 1 year
(including 1 year) 172587395.66 16.08 3636376.18 270686270.92 23.00 5873.33
1-2 years
(including 2 year) 77083020.84 7.18 4185192.57 34852514.76 2.96 1639836.84
2-3 years
(including 3 year) 10568270.82 0.98 3606663.48 254724777.74 21.64 182279617.60
More than 3 years 813057695.18 75.76 626156320.99 616886752.77 52.40 381113368.46
Total 1073296382.50 100.00 637584553.22 1177150316.19 100.00 565038696.23
- 85 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(2) Disclosure of other receivables by nature
Item Closing Balance Opening Balance
Operation compensation (Note 1) 560956025.90 512608434.72
Advance payment 233561792.45 227885870.03
Land compensation (Note 2) 58262369.00 197262369.00
Special subsidies collected on behalf 19779450.00 19779450.00
Security deposit 33170963.31 28631566.40
Others 167565781.84 190982626.04
Sub-total 1073296382.50 1177150316.19
Less: Provision for bad debts 637584553.22 565038696.23
Total 435711829.28 612111619.96
Note 1: It is the operating compensation that the subsidiary of the Company shall collect from the
holding company of its non-controlling shareholders according to the agreement. As at 31
December 2025 the Group has accumulated the compensation that has not been received
which is equivalent to RMB 560956025.90. The allowance for bad debts has been fully
accrued.Note 2: On 9 October 2021 Zhanjiang Port (Group) Co. Ltd. (hereinafter referred to as
"Zhanjiang Port") a subsidiary of the Company signed the Agreement on the Recovery of
State owned Land Use Rights with local government agencies which stipulates that
Zhanjiang Port will return 195.68 mu of land located in Zhanjiang Comprehensive Bonded
Zone east of Shugang Avenue to local government agencies at a price of RMB
89630000.00. The above land has been handed over before 31 December 2021. As at 31
December 2025 the above land compensation of RMB 89000000.00 has been recovered
and the remaining RMB 630000.00 of land compensation has not been recovered.On 4 September 2024 Zhanjiang Port signed the Agreement on the Recovery of State
owned Land Use Rights with local government agencies which stipulates that Zhanjiang
Port will return 146970.20 square meters of land and assets on the ground located in the
north of Xiashan Port District of Zhanjiang to local government agencies at a price of
RMB 107632369.00. The above land and above ground assets have been transferred
before 18 September 2024. As at 31 December 2025 Zhanjiang Port has recovered land
compensation of RMB 50000000.00 the above land compensation of RMB
57632369.00 has not been recovered.
- 86 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Closing Balance Opening Balance Reason for provision
Book balance Provision for bad debts Book balance Provision for bad debts
Item
Proportion Provision Book value Proportion Provision Book value
Amount % Amount rate % Amount % Amount （ ） （ ） （ ） rate % （ ）
Accrued based on the
A 328840429.56 30.64 43549.74 0.01 328796879.82 499361668.36 42.42 13957.42 - 499347710.94 expected loss rate of
each rating
B - - - - - - - - - - — —
C - - - - - - - - - - — —
D 744455952.94 69.36 637541003.48 85.64 106914949.46 677788647.83 57.58 565024738.81 83.36 112763909.02 Expected to be unrecoverable
Total 1073296382.50 100.00 637584553.22 59.40 435711829.28 1177150316.19 100.00 565038696.23 48.00 612111619.96 — —
Including significant other receivables for which provision for bad debts is assessed on an individual basis (credit rating of D)
Name of entity Closing Balance Provision for bad debts ECL rate (%) Reason for provision
Client 14 560956025.90 560956025.90 100.00 Expected to be unrecoverable (Note)
Client 15 122569018.03 28156519.86 22.97 No specific payment plan
Client 16 14000000.00 14000000.00 100.00 Expected to be unrecoverable
Total 697525043.93 603112545.76 — — — —
Note: Refer to Note (VIII) 7.3(2).- 87 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Movements of provisions for bad and doubtful debts
Stage 1 Stage 2 Stage 3
Item 12-month expected Lifetime expected Lifetime expected
credit loss credit loss (not credit loss (credit-
Total
credit-impaired) impaired)
As at 1 January 2025 13957.42 - 565024738.81 565038696.23
Balance of other receivables at 1 January 2025
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 -5781.70 - 5781.70 -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 40572.74 - 29960339.38 30000912.12
Reversal for the year -5198.72 - -3931866.01 -3937064.73
Effect of changes in the scope of
consolidation - - - -
Charge-off for the year - - - -
Write-off for the year - - -1682741.75 -1682741.75
Other changes - - 48164751.35 48164751.35
As at 31 December 2025 43549.74 - 637541003.48 637584553.22
(5) Other receivables written off during the year
Other
Nature of Approval receivables
Name of entity other Written-off amount Reason for write-off procedures arising from
receivables performed related-party
transactions
Client 17 Advance
Confirming that accounts
payment 1634741.75 receivable cannot be Yes No recovered
Employee Confirming that accounts Client 18 loans 48000.00 receivable cannot be Yes No recovered
Total —— 1682741.75 —— —— ——
- 88 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 top five balances of other receivables at the end of the year classified by debtor
Relationship Proportion to Provision for credit
Name of entity with the Book value Aging total other impairment at the Nature
Group receivables (%) end of the year
GLOBAL TERMINAL
LIMITED S.A.R.L. Third party 560956025.90 More than 3 years 52.26 560956025.90
Operation
compensation
Committee of China
Seamen's Union Zhanjiang Third party 122569018.03 More than 3 years 11.42 28156519.86 Advance payment
Port (Group) Co. Ltd for transactions
Zhanjiang Land Reserve 1-2 years more
Management Center Third party 58262369.00 than 3 years 5.43 - Land compensation
CHU KONG RIVER
TRADE TERMINAL Related party 32841079.20 2-3 years more than 3 years 3.06 - Loan CO.，LTD.Port de Djibouti S.A. Related party 24776520.00 More than 3 years 2.31 - Loan
Total —— 799405012.13 —— 74.48 589112545.76 — —
8. Inventories
(1) Inventories by category
Closing Balance Opening Balance
Item Provision for Provision for Book value impairment of Carrying Book value impairment of Carrying
inventories amount inventories amount
Raw materials 288836266.55 524634.82 288311631.73 261972849.28 1153436.72 260819412.56
Finished goods 9419494.95 - 9419494.95 4683965.30 - 4683965.30
Others 9485298.47 - 9485298.47 4454642.48 - 4454642.48
Total 307741059.97 524634.82 307216425.15 271111457.06 1153436.72 269958020.34
(2) Provision for impairment of inventories
Increase Decrease Effect of
translation of
Category Opening Balance Reversal or financial Provision Others Others statements Closing Balance charge-off denominated in
foreign currencies
Raw materials 1153436.72 - - 510114.09 113192.30 -5495.51 524634.82
- 89 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 impairment of inventories - continued
Provision for impairment inventories is made on an item-by-item basis and no provision for
impairment of inventories is made on a portfolio basis. The reason for the write off of provision for
impairment of inventories in this year is requisition and consumption.
(3) As at 31 December 2025 the Group has no capitalised borrowing cost in the balance of
inventories.
9. Non-current assets due within one year
Item Closing Balance Opening Balance
Long-term receivables due within one year - 35033025.11
Less: Provision for bad debts - 35033.03
Carrying amount - 34997992.08
10. Other current assets
Item Closing Balance Opening Balance
Input VAT to be deducted and certified 107448766.71 110187182.64
Prepaid taxes 51499208.46 140440401.53
Others - 1070228.60
Sub-total 158947975.17 251697812.77
Less: Provision for impairment - -
Total 158947975.17 251697812.77
11. Long-term receivables
(1) Details of long-term receivables
Closing Balance Opening Balance Range of
Item Book value Provision for Carrying Book value Provision for Carrying
discount rate
bad debts amount bad debts amount at the end of year
Advances to
Shareholders 1306312715.28 1306312.72 1305006402.56 1135688750.65 1135688.75 1134553061.90 3.00%-8.36%
(Note 1)
Land
compensation
receivable 2631932000.00 63130000.00 2568802000.00 2641932000.00 - 2641932000.00
(Note 2)
Others 708784.63 539.73 708244.90 889232.97 720.17 888512.80
Total 3938953499.91 64436852.45 3874516647.46 3778509983.62 1136408.92 3777373574.70
- 90 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
Note 1: It mainly represents the aggregate principal and interest receivable from Port of Newcastle
and Terminal Link SAS equivalent to RMB 1032950257.96 and RMB 239062457.32
respectively.On 14 June 2018 China Merchants Port Holdings Company (hereinafter referred to as
"CM Port") a subsidiary of the Company provided a long-term loan to Port of Newcastle
which signed in 2023 and has been extended to 31 December 2034. 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. (hereinafter referred to as
"Shantou Port") a subsidiary of the Company 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
RMB1558032000.00. 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 31 December 2025 the land compensation of RMB
1158032000.00 has not yet been recovered.
On 21 August 2020 Shantou Port and Shantou Haojiang District Land Reserve Center
signed the Shantou City State owned Land Use Right Purchase Contract which stipulates
that Shantou Port will hand back 152.34 mu of land and attached buildings located in
Wutian Farm Yushi Haojiang District Shantou City to Shantou Haojiang District Land
Reserve Center at a price of RMB 250000000.00. The above land and attached buildings
have been handed over before 31 December 2020. As at 31 December 2025 the land
compensation of RMB 200000000.00 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 RMB 2724876000.00. Among them 320 mu of
land and attached buildings were transferred by 31 December 2020 which is amounting
to RMB 1344000000.00 and the remaining 328.78 mu of land and attached buildings
have not been transferred. As at 31 December 2025 the land compensation of RMB
1273900000.00 has not yet been recovered.
- 91 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
Note 2-continued: The Group taking into account the historical repayment situation and future
outlook the Group estimates the difference between the present value of the cash flows expected
to be received and the book value as a whole and accordingly makes provision for credit
impairment loss. As of 31 December 2025 the Group has accrued corresponding credit impairment
losses of RMB 63130000.00.
(2) Long-term receivables disclosed by method of provision for bad debts
Closing Balance Opening Balance
Category Book value Provision for bad debts Carrying Book value Provision for bad debts Carrying
Amount Proportion Amount Proportion (%) (%) amount Amount
Proportion
(%) Amount
Proportion
(%) amount
Provision for bad
debts assessed on 3938953499.91 100.00 64436852.45 1.64 3874516647.46 3778509983.62 100.00 1136408.92 0.03 3777373574.70
a portfolio basis
Total 3938953499.91 100.00 64436852.45 1.64 3874516647.46 3778509983.62 100.00 1136408.92 0.03 3777373574.70
(3) Details of provision for bad debts
Changes for the year
Category Opening
Effect of Closing
Balance Provision Recovery or Charge-off or changes in the reversal write-off scope of Balance
consolidation
Advances to shareholders 1135688.75 170623.97 - - - 1306312.72
Guarantees for finance
leases 720.17 - 180.44 - - 539.73
Land compensation
receivable - 63130000.00 - - - 63130000.00
Total 1136408.92 63300623.97 180.44 - - 64436852.45
(4) There are no long-term receivables written off during the year.
- 92 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Classification of long-term equity investments
Effect of translation
Other increase of financial
Item Opening Balance Increase Decrease (decrease expressed statements Closing Balance
with "-") denominated in
foreign currencies
Investment in joint ventures 9315986527.94 - - -70925588.03 24951052.36 9270011992.27
Investment in associates 91037465629.64 65424356.69 -136244155.23 3441694812.60 -269889343.76 94138451299.94
Sub-total 100353452157.58 65424356.69 -136244155.23 3370769224.57 -244938291.40 103408463292.21
Less: provision for impairment of
long-term equity investments 335422262.62 - - - -59035.28 335363227.34
Total 100018029894.96 65424356.69 -136244155.23 3370769224.57 -244879256.12 103073100064.87
- 93 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Details of long-term equity investments
Changes for the year
Effect of
translation of Provision for
Investees Investment cost Opening Balance Increase in Decrease in Investment Share of other Share of other Cash dividends financial impairment at
investments investments income under comprehensiv changes in or profits
Provision for Closing Balance
equity method e income equity declared impairment
statements Other the end of the
denominated in year
foreign
currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. 2425579513.09 2275132823.96 - - 119622314.51 34069994.14 - -129199356.07 - -50543475.84 - 2249082300.70 -
Port of Newcastle 2228913892.38 1939252174.56 - - 40887494.82 17051668.46 - -21886886.16 - 83135610.92 - 2058440062.60 -
Others 3840805612.09 5093488046.78 - - 138570683.60 9270900.18 1159124.17 -280471525.68 - -7641082.72 - 4954376146.33 8113482.64
Sub-total 8495299017.56 9307873045.30 - - 299080492.93 60392562.78 1159124.17 -431557767.91 - 24951052.36 - 9261898509.63 8113482.64
II. Associates
Shanghai Port Group 10907913439.36 40042373774.56 - 3803684721.55 3120383.06 -393064045.30 -1273606004.78 - - - 42182508829.09 -
Ningbo Zhoushan Port Company Limited
(hereinafter referred to as "Ningbo 16958018515.43 19421486011.70 - - 1191694841.30 -23906992.04 28414378.80 -619547445.81 - - - 19998140793.95 -
Zhoushan")
Shenzhen China Merchants Qianhai
Industrial Development Co. Ltd. 6846580290.61 7409920859.08 - - 141661962.07 - - - - - - 7551582821.15 -
Terminal Link SAS 5980765880.26 6168712893.68 - - 492759579.32 463349744.07 - -439601892.73 - -145209814.85 - 6540010509.49 -
Nanshan Group 2182780419.00 6033520232.11 - - 33928156.72 -532286.23 -7074950.35 -37014000.00 - - - 6022827152.25 -
Liaoning Port 3731548568.95 4250226314.79 - - 148400755.75 -2066959.60 -27185456.84 -64882190.40 - - - 4304492463.70 324913116.66
Others 7743563248.32 7383916763.74 65424356.69 -136244155.23 223516166.60 28862479.03 -364789.63 -226823307.68 - -124620493.63 -2028034.28 7211638985.61 2336628.04
Sub-total 54351170361.93 90710156849.66 65424356.69 -136244155.23 6035646183.31 468826368.29 -399274863.32 -2661474841.40 - -269830308.48 -2028034.28 93811201555.24 327249744.70
Total 62846469379.49 100018029894.96 65424356.69 -136244155.23 6334726676.24 529218931.07 -398115739.15 -3093032609.31 - -244879256.12 -2028034.28 103073100064.87 335363227.34
- 94 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
(3) Changes in provision for impairment of long-term equity investments are as follows
Decrease Effect of
translation of
Effect of changes financial
Item Opening Balance in the scope of Increase Decrease Reasons for statements Closing Balance consolidation reduction denominated in
foreign
currencies
Liaoning Port 324913116.66 - - - - - 324913116.66
Silk Road Yishang Information Technology
Co. Ltd. 8113482.64 - - - - - 8113482.64
HOA THUONG CORPORATION 2395663.32 - - - - -59035.28 2336628.04
Total 335422262.62 - - - - -59035.28 335363227.34
- 95 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 instruments4
Closing Opening Dividend income Other comprehensive Other comprehensive Amount transferred from Reasons for transferring Item Balance Balance recognised income during the year income at the end of Reasons for designation other comprehensive income other comprehensive income during the year the year to retained earnings to retained earnings
China Ocean Shipping
Agency Shenzhen Co. Ltd. 130000000.00 129726519.67 9664500.00 273480.33 116490000.00
It is a non-trading equity
instrument investment - — —
Others 11766365.15 9725367.38 120000.00 2040997.77 2738865.15 It is a non-trading equity instrument investment - — —
Total 141766365.15 139451887.05 9784500.00 2314478.10 119228865.15 -
(2) There are no other equity instruments derecognised for the year.
- 96 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
Financial assets at FVTPL 28768810.95 28524600.31
Including: Investments in equity instruments 28768810.95 28524600.31
Total 28768810.95 28524600.31
15. Investment properties
(1) Investment properties measured at cost
Item Land use rights Buildings and structures Total
I. Cost — — — — — —
As at 1 January 2025 136657995.75 4319416172.19 4456074167.94
Decrease for the year - -552235.00 -552235.00
Other decreases -6404821.25 - -6404821.25
As at 31 December 2025 130253174.50 4318863937.19 4449117111.69
II. Accumulated depreciation
and amortisation — — — — — —
As at 1 January 2025 50135665.57 1117248431.77 1167384097.34
Increase for the year 2498871.95 123539464.13 126038336.08
Transfer from investment
properties to fixed assets - -161287.68 -161287.68
Other decreases -2095357.83 - -2095357.83
As at 31 December 2025 50539179.69 1240626608.22 1291165787.91
III. Impairment provision — — — — — —
As at 1 January 2025 - - -
As at 31 December 2025 - - -
IV. Carrying amount — — — — — —
As at 1 January 2025 86522330.18 3202167740.42 3288690070.60
As at 31 December 2025 79713994.81 3078237328.97 3157951323.78
- 97 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Item Book value Reasons for not obtaining certificate of title
Buildings structures
and land use rights 18684896.11 Some buildings and structures have not yet obtained certificates of land use rights
16. Fixed assets
16.1 Summary of fixed assets
Item Closing Balance Opening Balance
Fixed assets 30442667834.87 30688591344.25
Disposal of fixed assets 216462.95 626447.20
Total 30442884297.82 30689217791.45
16.2 Fixed assets
(1) Details of fixed assets
Machinery and
Item Port and terminal equipment furniture Motor vehicles and facilities Buildings and structures fixture and other cargo ships Total
equipment
I. Cost — — — — — — — — — —
As at 1 January 2025 32465773556.56 3694135032.52 17385378609.69 2287212824.87 55832500023.64
Effect of changes in the scope of
consolidation - - 215249.81 516249.00 731498.81
Purchase 22456341.77 280278.30 250090443.99 30375360.77 303202424.83
Transfer from construction in progress 742467838.37 18967065.64 580239918.77 38919621.37 1380594444.15
Other increase 7786816.62 714111.14 2056584.47 - 10557512.23
Decrease for the year -44538254.20 -1289366.12 -197852670.99 -7006759.47 -250687050.78
Reclassification -18633509.76 - 18304489.76 329020.00 -
Others decreases -2143215.25 -25287.94 -1207735.94 - -3376239.13
Effect of translation of financial statements
denominated in foreign currencies 104818978.90 -3503758.11 120013141.00 -16582679.67 204745682.12
As at 31 December 2025 33277988553.01 3709278075.43 18157238030.56 2333763636.87 57478268295.87
II. Accumulated depreciation — — — — — — — — — —
As at 1 January 2025 11530007770.51 1078040229.08 11097200518.48 1225369778.26 24930618296.33
Effect of changes in the scope of
consolidation - - 215249.81 516249.00 731498.81
Increase for the year 982069480.63 128812339.20 830998991.83 107657947.53 2049538759.19
Others increase - 714111.14 - - 714111.14
Decrease for the year -39422062.24 -1086506.44 -179829413.57 -6710140.16 -227048122.41
Reclassification -3892300.23 - 3762063.23 130237.00 -
Other decreases -155801.87 -15045.48 -1166961.65 - -1337809.00
Effect of translation of financial statements
denominated in foreign currencies 13570406.76 -1674983.01 64363834.28 -6156214.52 70103043.51
As at 31 December 2025 12482177493.56 1204790144.49 11815544282.41 1320807857.11 26823319777.57
III. Impairment provision — — — — — — — — — —
As at 1 January 2025 196464146.22 9414527.47 7411709.37 - 213290383.06
As at 31 December 2025 196464146.22 9414527.47 6402009.74 - 212280683.43
IV. Carrying amount — — — — — — — — — —
As at 1 January 2025 20739301639.83 2606680275.97 6280766381.84 1061843046.61 30688591344.25
As at 31 December 2025 20599346913.23 2495073403.47 6335291738.41 1012955779.76 30442667834.87
Including: Carrying amount of fixed assets
pledged at the end of the y ear 821184759.38 20713857.86 282476176.22 - 1124374793.46
- 98 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 31 December 2025.
(3) Fixed assets leased out under operating leases
Item Carrying amount of Carrying amount of closing balance opening balance
Buildings and structures 180145890.02 185465560.82
Port and terminal facilities 30385645.46 41979439.95
Machinery and equipment furniture fixture and other equipment 1346838.39 10203232.09
Total 211878373.87 237648232.86
(4) Fixed assets without ownership certificates
Item Carrying amount of Carrying amount of closing balance opening balance Remark
Buildings structures This is mainly due to the fact that certain buildings
port and terminal 1264731872.19 1357929730.13 and structures have not yet obtained the land use
facilities rights of the corresponding land and the approval procedures have not yet been completed.
(5) The details of the Group's fixed assets with restricted ownership as at 31 December 2025
are set out in Note (VIII) 65.
16.3 Disposal of fixed assets
Item Closing Balance Opening Balance
Machinery and equipment furniture fixture
and other equipment 216462.95 626447.20
Total 216462.95 626447.20
17. Construction in progress
(1) Presentation of construction in progress
Item Closing Balance Opening Balance
Construction in progress 3399698342.95 3296562213.14
Materials for construction in progress 3885088.53 14547783.45
Total 3403583431.48 3311109996.59
- 99 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(2) Details of construction in progress
Closing Balance Opening Balance
Item Book value Provision for Carrying Book value Provision for Carrying impairment amount impairment amount
Port and terminal
facilities 1996474911.84 2906416.74 1993568495.10 1950072409.34 - 1950072409.34
Infrastructure 1172459051.94 - 1172459051.94 608560125.43 - 608560125.43
Berths and yards 20857215.96 - 20857215.96 475884349.47 - 475884349.47
Cargo ships under
construction 16673893.80 - 16673893.80 21073474.73 - 21073474.73
Others 199645516.48 3505830.33 196139686.15 241750332.70 778478.53 240971854.17
Total 3406110590.02 6412247.07 3399698342.95 3297340691.67 778478.53 3296562213.14
- 100 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Changes of significant construction in progress
Effect of
translation of Proportion of
Other financial accumulated Amount of Including:
Interest
Opening Increase for the Transfer to Construction accumulated Capitalised capitalization Item Budget amount Capital Balance year fixed assets decreases for statements Closing Balance construction rate for the the year denominated investment in progress (%) capitalised interest for current year source
in foreign budget (%) interest the year (%)
currencies
Zhanjiang Port Baoman Port Area
Container Terminal Phase I 2342775800.00 597781190.31 577145482.11 - 6808148.28 - 1168118524.14 50.15 50.15 14579765.90 10425895.30 2.60 Own funds
Expansion Project and loans
Zhanjiang Port Donghai Island Port
Area Grocery Wharf Project 905348400.00 480001315.04 60541450.22 - - - 540542765.26 59.71 59.71 44364372.49 - -
Own funds
and loans
Reconstruction project of HIPG
container oil terminal and tank area 2843456972.52 843680056.40 - 345285718.55 - -13217143.90 485177193.95 51.10 51.10 - - - Own funds
Subsequent construction in progress of
HIPG wharf 1122736230.56 347651856.20 28632960.41 33170980.65 - -7646241.13 335467594.83 33.51 33.51 - - - Own funds
Phase III Expansion Project of Bulk
Grain Warehouse at 2 # and 3 #
Berths in Xinshanan Operation Area 1070060466.80 55590989.31 235078683.24 - - - 290669672.55 27.16 27.16 1175941.13 680800.12 2.85
Own funds
and loans
of Machong Port
Dachanwan phase II project 6201904300.00 94110621.23 69570517.25 - - - 163681138.48 2.64 2.64 - - - Own funds
The Project of Zhanjiang Port 21#
Warehouse and Substation 117110000.00 19044357.57 50105982.72 - - - 69150340.29 59.05 59.05 - - - Own funds
Renovation and Expansion and loans
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82400000.00 63924781.40 1674220.80 - - - 65599002.20 79.61 79.61 - - - Own funds
Facilities and Liquid Bulk Berth
Guang'ao Phase III Project 3573290000.00 21015693.05 34358992.00 46398.23 - - 55328286.82 1.55 1.55 - - - Own funds
Full rotation tugboat construction
project 41870000.00 - 16673893.80 - - - 16673893.80 39.82 39.82 - - - Own funds
Phase II of the second phase of the
wharf project in the local operation
area of the port area of Goshan Port is 512745400.00 136728384.61 211058470.73 329646763.39 15703744.25 - 2436347.70 67.83 67.83 1920104.33 1920104.33 2.81
Own funds
and loans
controlled in sequence
Phase I of the second phase of the
wharf project in the local operation
area of Goshan Port Area is controlled 746878600.00 331708848.99 56648447.56 388357296.55 - - - 86.19 100.00 31067837.20 9592022.62 2.81
Own funds
and loans
in sequence
Phase II warehouse of Djibouti Free
Trade Zone Bonded Logistics Park 86686459.04 73109774.23 15446599.93 88093412.04 - -462962.12 - 100.00 100.00 - - - Own funds
Total 19647262628.92 3064347868.34 1356935700.77 1184600569.41 22511892.53 -21326347.15 3192844760.02 — — — — 93108021.05 22618822.37 — — — —
- 101 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Right-of-use assets
（1） Details of right-of-use assets
Machinery and
Port and Buildings and equipment
Motor
Item terminal structures furniture Land use rights
vehicles cargo
facilities fixture and ships and
Total
other equipment others
I. Cost — — — — — — — — — — — —
As at 1 January 2025 6494856616.10 154067861.90 5409429.14 3718797951.13 6177384.73 10379309243.00
Increase for the year 549439446.27 159501.39 - - 5544571.44 555143519.10
Decrease for the year 21169292.10 22590971.87 4074353.01 2408655.71 2429545.28 52672817.97
Effect of translation of financial
statements denominated in foreign -141921453.30 -2989569.29 -35450.47 -99894244.63 - -244840717.69
currencies
As at 31 December 2025 6881205316.97 128646822.13 1299625.66 3616495050.79 9292410.89 10636939226.44
II. Accumulated depreciation — — — — — — — — — — — —
As at 1 January 2025 928160476.79 37043873.94 4164300.68 448828617.90 3759910.15 1421957179.46
Increase for the year 243359988.66 11539278.06 1040297.77 68752784.95 4182723.44 328875072.88
Decrease for the year 21169292.10 15153130.14 4074353.01 2306514.00 2429545.28 45132834.53
Effect of translation of financial
statements denominated in foreign -22000310.91 -863353.80 -29607.19 -11171847.64 - -34065119.54
currencies
As at 31 December 2025 1128350862.44 32566668.06 1100638.25 504103041.21 5513088.31 1671634298.27
III. Impairment provision — — — — — — — — — — — —
As at 1 January 2025 - - - - - -
As at 31 December 2025 - - - - - -
IV. Carrying amount — — — — — — — — — — — —
As at 1 January 2025 5566696139.31 117023987.96 1245128.46 3269969333.23 2417474.58 8957352063.54
As at 31 December 2025 5752854454.53 96080154.07 198987.41 3112392009.58 3779322.58 8965304928.17
- 102 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Effect of Effect of translation
Item Opening Balance changes in the Increases for the Decreases for
of financial
scope of year the year statements Closing Balance
consolidation denominated in foreign currencies
I. Total cost 24970846065.14 18846.02 570374124.84 113959773.04 734394696.81 26161673959.77
Including: Land use rights 14063421368.77 - 209593892.64 99171492.17 -5935472.08 14167908297.16
Terminal operating right 9319595026.35 - 21629345.87 - 688165407.41 10029389779.63
Self developed data
resources 6339622.62 - - - - 6339622.62
Other 1581490047.40 18846.02 339150886.33 14788280.87 52164761.48 1958036260.36
II. Total accumulated 8460808109.75
amortisation 7578753372.23 10051.20 737947350.23 38061835.25 182159171.34
Including: Land use rights 4605959694.01 - 333999630.84 23422404.94 -3073440.05 4913463479.86
Terminal operating right 2356430281.06 - 310988454.55 - 162685538.12 2830104273.73
Self developed data
resources 88502.35 - 634846.48 - - 723348.83
Other 616274894.81 10051.20 92324418.36 14639430.31 22547073.27 716517007.33
III. Total impairment provision 57010270.07 - - - - 57010270.07
Including: Land use rights 44199381.24 - - - - 44199381.24
Terminal operating right - - - - - -
Self developed data
resources - - - - - -
Other 12810888.83 - - - - 12810888.83
IV. Total carrying amount 17335082422.84 —— —— —— —— 17643855579.95
Including: Land use rights 9413262293.52 —— —— —— —— 9210245436.06
Terminal operating right 6963164745.29 —— —— —— —— 7199285505.90
Self developed data
resources 6251120.27 —— —— —— —— 5616273.79
Other 952404263.76 —— —— —— —— 1228708364.20
(2) Land use rights without ownership certificates as at 31 December 2025
Item Carrying amount Carrying amount of closing balance of opening balance
Land use rights (Note) 1643722609.93 1889916568.77
- 103 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 31 December 2025 - continued
Note: As at 31 December 2025 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 690161.97 m2 and Dachanwan Port area Phase II
land use rights obtained by Ansujie Port Warehousing Services (Shenzhen) Co. Ltd.(hereinafter referred to as "ASJ") the costs of which are RMB 1179538483.36 and RMB
918521317.23 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.The property rights certificate for the second phase land use right of Dachanwan Port Area
obtained by ASJ will be processed after the completion of sea reclamation.
(3) The details of the Group's intangible assets with restricted ownership as at 31 December
2025 are set out in Note (VIII) 65.
20. Goodwill
(1) Details of goodwill
Effect of translation of
Investee Sources Opening Balance Increase Decrease financial statements denominated in foreign Closing Balance
currencies
TCP Acquisition of equity 2369714257.24 - - 237924336.90 2607638594.14
Mega Shekou Container
Terminals Limited (hereinafter Acquisition of equity 1815509322.42 - - - 1815509322.42
referred to as "Mega SCT")
CM Port Acquisition of equity 993992000.00 - - - 993992000.00
Shantou Port Acquisition of equity 552317736.65 - - - 552317736.65
Zhanjiang Port Acquisition of equity 418345307.68 - - - 418345307.68
Shenzhen Mawan Project Acquisition of equity 408773001.00 - - - 408773001.00
Others Acquisition of equity 345322348.68 6718413.80 - -1537629.27 350503133.21
Sub-total — — 6903973973.67 6718413.80 - 236386707.63 7147079095.10
Provision for impairment of goodwill — — 970663044.33 - - - 970663044.33
Total — — 5933310929.34 6718413.80 - 236386707.63 6176416050.77
- 104 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Opening Effect of changes
translation of
Investee in the scope of Provision financial Balance consolidation statements
Decrease Closing Balance
denominated in
foreign currencies
Shantou Port 552317736.65 - - - - 552317736.65
Zhanjiang Port 418345307.68 - - - - 418345307.68
Total 970663044.33 - - - - 970663044.33
(3) Information of asset groups or portfolio of asset groups to which the goodwill belongs
Name Composition of asset groups or portfolio of asset Is it consistent with that of the 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
CM Port groups based on their ability to generate cash inflows Yes
Shantou Port independently the manner in which they manage their Yes
Zhanjiang Port production and operating activities and the unified Yes
Shenzhen Mawan Project decision-making on use or disposal of assets. Yes
Others Yes
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 the projection period between 5 years to 23 years
and steady period. The estimated future cash flows for the projection period are based on the
business plan established by the management; the expected future cash flows for the steady period
are determined in conjunction with the level of the final year of the projection 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 pre-tax discount rate and the
growth rate adopted are 9.44%-23.25% and 1.89%-2.52% respectively. The parameters of key
assumptions determined by the Group's management are in line with the Group's historical
experience or external source of information.- 105 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(4) Specific method for determination of recoverable amount
The recoverable amount is determined at the present value of expected future cash flows
Item Projection period Key parameters for projection Basis to determine the key parameters Key parameters for steady Basis to determine the key parameters for steady period for projection period period period
1. Pre-tax discount rate: 10.29% 1. The discount rate is a pre-tax discount 1. Pre-tax discount rate: 10.29%
2. Average revenue growth rate for rate that reflects the specific risks of the 2. Average revenue growth rate 1. The discount rate is a pre-tax discount rate that
Mega SCT 5 years projection period: 0.01% underlying asset group or combination for steady period: 1.89% reflects the specific risks of the underlying asset
3. Average profit margin for of asset groups 3. Average profit margin for group or combination of asset groups
projection period: 41.16% 2. Average revenue growth rate for steady period: 40.17% 2. Average revenue growth rate for steady period:
projection period and average profit 1. Pre-tax discount rate: Not China's forward inflation rate published by the 1. Pre-tax discount rate: 23.25% World Bank
2. Average revenue growth rate for margin for projection period: Taking applicable into account comprehensive factors such 2. Average revenue growth rate 3. Profit margin for steady period: Taking into TCP 23 years (Note) projection period: 5.01% as each company's business operations for steady period: Not applicable account comprehensive factors such as each 3. Average profit margin for
projection period: 59.67% performance key financial indicators 3. Average profit margin for
company's business operations performance key
and market environment steady period: Not applicable financial indicators and market environment
Note: The franchise right of TCP a subsidiary of the Group to Paranagua Port will expire in October 2048. TCP predicts the future cash flow based
on the remaining years of the franchise right.- 106 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Long-term deferred expenses
Presentation of long-term deferred expenses:
Item Opening Increase for Amortisation Other Balance the year in the year decreases Closing Balance Reason for other decreases
Tonggu channel widening project
(Note 1) 426358457.19 - 14615692.32 - 411742764.87
West public channel widening
project at West port area (Note 2) 229677161.96 - 6603626.20 - 223073535.76
Dredging project 65783053.94 8380006.13 24458611.73 5534.99 49698913.35 Settlement Variance
Relocation project of Nanhai Rescue
Bureau 35339374.70 - 1107368.40 - 34232006.30
Expenditures for the improvement of
leased fixed assets 20416797.88 6986783.39 3243366.25 623271.52 23536943.50 Settlement Variance
Others 162829634.27 65638880.70 50942876.60 90556.97 177435081.40 Settlement Variance
Total 940404479.94 81005670.22 100971541.50 719363.48 919719245.18
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 deferred
expenses " and amortised 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 deferred expenses " and amortised
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.- 107 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Closing Balance Opening Balance
Item Deferred tax Deductible Deductible
assets temporary
Deferred tax
assets temporary differences differences
Lease liabilities 295871432.32 1367303811.47 163857577.86 666428741.59
Unrealized profit 179593057.91 734475385.57 181536190.45 742725529.54
Terminal operating right 223733018.15 745776727.15 217563517.06 725211723.54
Depreciation of fixed assets 40471835.50 191301536.12 38716737.33 180532470.26
Provision for bad debts 9161395.67 41122248.17 18830890.39 84382905.10
Accrued and unpaid wages 15275295.00 73422009.38 21864895.76 104332100.77
Estimated liabilities 28614938.41 90185667.85 24250379.90 72335644.41
Deductible losses 15925668.89 106171125.93 5384926.28 35370822.19
Deferred income 7151504.28 30286075.45 8571871.40 36119190.53
Amortisation of computer software 2269985.97 13606231.50 1226964.34 6236548.44
Provision for impairment of assets 673227.45 3364804.44 690206.29 3477996.67
Others 41142857.64 165309874.90 22429487.85 98150808.94
Total 859884217.19 3562325497.93 704923644.91 2755304481.98
(2) Deferred tax liabilities before offsetting
Closing Balance Opening Balance
Item Deferred tax Taxable temporary Deferred tax Taxable temporary
liabilities differences liabilities differences
Withholding dividend income tax 3258707299.23 48419673418.17 3127746150.78 45628599622.34
Right-of-use assets 377554058.21 1607827870.66 257345925.13 972527705.73
Terminal operating right 80273769.35 267579231.18 82096512.01 273655040.04
Fair value adjustment of assets acquired
from business combination 1226351207.35 4851401238.39 1254384068.52 4861662497.66
Depreciation of fixed assets 281321320.16 1004405641.73 257210035.67 934419445.82
Changes in fair value of investments in
other equity instruments 29122500.00 116490000.00 29054129.91 116216519.64
Valuation of financial assets held for
trading 1182941.81 4731767.24 754965.77 3019863.08
Others 119049568.27 1060609222.61 126835982.94 1026333384.24
Total 5373562664.38 57332718389.98 5135427770.73 53816434078.55
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Offset amount of Balance of deferred Offset amount of Balance of deferred
deferred tax assets tax assets or deferred tax assets tax assets or
Item and liabilities at the liabilities after and liabilities at the liabilities after
end of the current offsetting at the end end of the prior offsetting at the end
year of the current year year of the prior year
Deferred tax assets -504396695.35 355487521.84 -339442437.14 365481207.77
Deferred tax liabilities -504396695.35 4869165969.03 -339442437.14 4795985333.59
- 108 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Details of unrecognised deferred tax assets
Item Closing Balance Opening Balance
Deductible temporary differences 1088193612.07 1126951677.30
Deductible losses 1247132283.40 1637807708.04
Total 2335325895.47 2764759385.34
The Group recognises 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 recognised.
(5) Deductible losses for which deferred tax assets are not recognised will be expired in the
following years:
Year Closing Balance Opening Balance
2025-375181018.80
2026102128558.83105089811.43
2027205298714.50332432966.78
2028709684706.07753239633.32
202947794332.6271864277.71
2030176809471.64-
20345416499.74-
Total 1247132283.40 1637807708.04
23. Other non-current assets
Item Closing Balance Opening Balance
Advances for the channel project (Note 1) 793174860.33 1037329218.89
Prepayments for fixed assets 67035987.35 117351349.97
Prepayments for terminal operating right 32437050.53 28542865.38
Others 637756.68 14325919.01
Sub-total 893285654.89 1197549353.25
Less: provision for impairment (Note 1 Note 2) 174364111.91 88524171.44
Total 718921542.98 1109025181.81
Note 1: 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 (hereinafter
referred to as "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.- 109 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
23. Other non-current assets – continued
Note 1: - continued
In 2025 Zhanjiang Port received a prepayment of RMB 267849800.00 from Zhanjiang
Port and Navigation Affairs Center for the waterway.Note 2: Zhanjiang Port a subsidiary of the Company comprehensively considers the reasonable
and reliable information related to the credit risk status of the debtor including the
payment period agreed in the contract actual settlement period the financial status of the
debtor etc. estimates the present value of the difference between the contractual cash
flows of the waterway advance payment fee and the expected cash flow collected and
makes provision for bad debts accordingly. As of 31 December 2025 the Group has
accrued corresponding credit impairment losses of RMB 174364111.91 (31 December
2024: RMB 88524171.44).
24. Short-term borrowings
(1) Classification of short-term borrowings
Item Closing Balance Opening Balance
Credit borrowings 19724784577.14 12771225106.96
Mortgage borrowings (Note) 51036254.18 20017034.73
Total 19775820831.32 12791242141.69
Note: It is obtained by Guangdong Yide Port Co. Ltd. (hereinafter referred to as "Yide Port") a
subsidiary of the Company by mortgaging the land and fixed assets held by it.
(2) As at 31 December 2025 the Group has no short-term borrowings that are overdue.
25. Bills payable
Category Closing Balance Opening Balance
Bank acceptance - 1536194.00
Total - 1536194.00
- 110 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
26. Accounts payable
Item Closing Balance Opening Balance
Service fee 238195011.65 177881786.24
Material purchase fee 125891873.15 147233743.30
Construction fee 85951478.75 97723911.20
Equipment payments 40330021.94 79246916.34
Rental fee 15440269.10 19621514.17
Others 234091837.76 264122661.08
Total 739900492.35 785830532.33
(1) Aging of accounts payable
Closing Balance Opening Balance
Aging Amount Proportion Amount Proportion (%) (%)
Within 1 year (Including 1 year) 621757239.35 84.03 694992359.27 88.44
1-2 years (Including 2 years) 62740553.51 8.48 46762212.21 5.95
2-3 years (Including 3 years) 19536220.58 2.64 11450482.24 1.46
More than 3 years 35866478.91 4.85 32625478.61 4.15
Total 739900492.35 100.00 785830532.33 100.00
(2) Significant accounts payable aged more than 1 year
Name of entity Closing Balance Reason for outstanding
Shenzhen Nanshan District Treasury Payment Center 28414768.94 To be paid upon confirmation by both parties.Quanzhou Antong Logistics Co. Ltd. 17869057.61 To be paid upon confirmation by both parties.Sinopec Group Assets Operation Management
Co. Ltd. 12566300.00 To be paid upon confirmation by both parties.
27. Advance payments received
Item Closing Balance Opening Balance
Rental fee received in advance 11781611.38 14371546.45
Others 409843.14 204691.39
Total 12191454.52 14576237.84
(1) Aging of advance payments received
Closing Balance Opening Balance
Aging Amount Proportion Amount Proportion (%) (%)
Within 1 year (Including 1 year) 11444067.35 93.87 13621118.48 93.45
1-2 years (Including 2 years) 96278.62 0.79 955119.36 6.55
2-3 years (Including 3 years) 651108.55 5.34 - -
Total 12191454.52 100.00 14576237.84 100.00
(2) As at 31 December 2025 the Group has no significant advance payments received aged
more than one year.
(3) For the year ended 31 December 2025 the Group has no advance payments received with
significant changes in carrying amount.- 111 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28 Contract liabilities
(1) Details of contract liabilities
Item Closing Balance Opening Balance
Unused sales discounts 264529928.79 123329461.62
Port and service fees collected in advance 167813038.98 123282437.42
Storage fees collected in advance 2310969.36 5407746.76
Others 12169011.66 15868626.82
Total 446822948.79 267888272.62
(2) Revenue recognised in the current year including the book value of contract liabilities at
the beginning of the year
At the beginning of this year the book value of contract liabilities was RMB 248300041.60 which
was recognised as revenue in this year including unused sales discounts advance collection of port
and service fees advance collection of warehousing fees contracts and advance collection for other
contracts that have been settled but not completed
(3) As at 31 December 2025 the Group has no significant contract liabilities aged more than
one year.
(4) Qualitative analysis of contract liabilities
Contract liabilities mainly refer to unused sales discounts and fees collected by the Group for
providing port services to customers. Unused sales discount refers to the sales discount withdrawn
by the Group on the date of financial statements for the sales contract that has fulfilled the
performance obligation and is used to deduct future service fees. Advance port and service fees
shall be collected according to the payment time agreed in the contract. The Group recognises
contract revenue according to the performance schedule and contract liabilities will be recognised
as revenue after the Group performs its performance obligations.
29. Employee benefits payable
(1) Employee benefits payable classification
Item Opening
Effect of changes
in the scope of Increase for the Decrease for the Balance year year Closing Balance consolidation
1. Short-term benefits 1159571782.03 888451.87 3367598242.18 3241039456.31 1287019019.77
2. Post-employment benefits
defined contribution plan 8520567.12 - 418356144.43 416061052.12 10815659.43
3. Termination benefits 500000.00 - 5800033.43 6300033.43 -
4. Other benefits due within 1 year - - - - -
5. Others - - 10638790.98 10638790.98 -
Total 1168592349.15 888451.87 3802393211.02 3674039332.84 1297834679.20
- 112 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Item Opening changes in the Increase for the Decrease for the Balance scope of year year Closing Balance
consolidation
1. Wages and salaries bonuses
allowances and subsidies 1126682376.20 93380.00 2769660036.10 2643988473.90 1252447318.40
2. Staff welfare - - 152503967.42 152503967.42 -
3. Social insurance contributions 21283662.81 - 181208538.90 179329942.73 23162258.98
Including: Medical insurance and
maternity insurance 17671866.66 - 135489244.58 132971144.56 20189966.68
premiums
Work injury insurance - - 24315059.55 24315059.55 -
Others 3611796.15 - 21404234.77 22043738.62 2972292.30
4. Housing funds 0.01 - 200811566.30 200811566.31 -
5. Labour union and employee
education funds 11605743.01 795071.87 45174687.08 46210046.48 11365455.48
6. Other short-term benefits - - 18239446.38 18195459.47 43986.91
Total 1159571782.03 888451.87 3367598242.18 3241039456.31 1287019019.77
(3) Presentation of defined benefit plans
Effect of
Item Opening changes in the Increase for the Decrease for the Balance scope of year year Closing Balance
consolidation
1. Basic pension 7459654.22 - 316991768.30 315485089.99 8966332.53
2. Unemployment insurance - - 12078617.33 12078617.33 -
3. Enterprise annuity 1060912.90 - 89285758.80 88497344.80 1849326.90
Total 8520567.12 - 418356144.43 416061052.12 10815659.43
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 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
Item Closing Balance Opening Balance
Enterprise income tax 758576333.33 576840455.26
VAT 24055651.28 33120467.83
Other taxes and surcharges 130652487.93 115204803.23
Total 913284472.54 725165726.32
- 113 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
Dividends payable 135169470.79 132334744.28
Other payables 1899753608.16 1791645568.70
Total 2034923078.95 1923980312.98
(2) Dividends payable
Item Closing Balance Opening Balance
Ordinary share dividends 135169470.79 132334744.28
Including: China Merchants Zhangzhou Development
Zone Co. Ltd. 105526928.23 79792513.04
Yiu Lian Dockyards Limited 22924685.89 -
Qingdao Port (Group) Co. Ltd. 6717856.67 -
Zhanjiang Infrastructure Construction Investment
Group Co. Ltd. - 52542231.24
Note: As at 31 December 2025 The Group has a total of RMB 79792513.04 of important
dividends payable with an aging of more than one year all of which are dividends payable
to China Merchants Zhangzhou Development Zone Co. Ltd. The reason for the non-
disbursement is that the funding plan has not yet been arranged.
(3) Other payables
(a) Disclosure of other payables by nature
Item Closing Balance Opening Balance
Amount payable for construction and
quality warranty 830865851.52 769762433.76
Guarantees and deposits 207608168.44 271312443.95
Port construction and security fee 22421347.69 26454133.47
Others 838858240.51 724116557.52
Total 1899753608.16 1791645568.70
- 114 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
(b) Aging analysis of other payables
Closing Balance Opening Balance
Aging Amount Proportion（%） Amount Proportion（%）
Within 1 year
(including 1 year) 1297912623.51 68.32 1181359579.96 65.94
1-2 years (including 2 years) 130587433.84 6.87 100163555.98 5.59
2-3 years (including 3 years) 64712876.01 3.41 144116749.00 8.04
More than 3 years 406540674.80 21.40 366005683.76 20.43
Total 1899753608.16 100.00 1791645568.70 100.00
(c) Significant other payables aged more than one year
Company name Amount payable Aging Reason for being outstanding
Lac Assal Investment Holding Company Limited 79952643.76 1-2 years、2-3 years and more than 3 years To be paid upon confirmation by both parties
Transport Bureau of Shenzhen Municipality
(Ports Administration of Shenzhen Municipality) 79689248.18 More than 3 years To be paid upon confirmation by both parties
Shanghai Zhenhua Heavy Industries Co. Ltd. 39072403.74 1-2 years and more than 3 years To be paid upon confirmation by both parties
Shantou Bureau of Communications 31358355.47 More than 3 years To be paid upon confirmation by both parties
China Communications Fourth Navigation Engineering 24948480.39 1-2 years、2-3 years and Bureau Co. Ltd more than 3 years To be paid upon confirmation by both parties
Total 255021131.54 —— ——
32. Non-current liabilities due within one year
Item Closing Balance Opening Balance
Long-term borrowings due within one year 5429113410.54 3271899155.70
Including: Credit borrowings 5305704329.05 3083776769.64
Mortgage borrowings 33593973.27 110904933.53
Guaranteed and mortgage borrowings 89815108.22 77217452.53
Bonds payable due within one year 229971569.71 6866623467.03
Lease liabilities due within one year 211853235.22 101402045.53
Long-term payables due within one year 114496507.83 206012716.21
Long-term employee benefits payable due within one year 42037962.03 44885411.13
Other non-current liabilities due within one year 15050000.00 15860000.00
Total 6042522685.33 10506682795.60
33. Other current liabilities
(1) Details of other current liabilities
Item Closing Balance Opening Balance
Short-term bonds payable 2004242191.78 4020214246.58
Others 195059225.24 40987514.14
Total 2199301417.02 4061201760.72
- 115 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 accrued Amortisation Is it in
Name of bond Face value Coupon Date of issue Term of Amount of issue Opening Balance Amount issued in based on par of premiums Repayment in rate the bond the current year value or discounts the current year
Closing Balance breach of
contract
1.95% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 1.95% 2024-07-31 270 days 2000000000.00 2016347945.21 - 12501369.86 - 2028849315.07 - No
1.96% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 1.96% 2024-11-25 180 days 2000000000.00 2003866301.37 - 15465205.48 - 2019331506.85 - No
1.51% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 1.51% 2025-05-19 180 days 2000000000.00 - 2000000000.00 14893150.68 - 2014893150.68 - No
1.58% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 1.58% 2025-11-13 267 days 2000000000.00 - 2000000000.00 4242191.78 - - 2004242191.78 No
Total 8000000000.00 8000000000.00 4020214246.58 4000000000.00 47101917.80 - 6063073972.60 2004242191.78
- 116 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Long-term borrowings
Category Closing Balance Opening Balance Range of year-end interest rate
Credit borrowings 5677716492.69 13903500511.85 1.70%-3.00%
Mortgage borrowings (Note 1) 744516884.53 572319257.23 2.66%-3.50%
Guaranteed and mortgage borrowings (Note 2) 1017722746.28 1106773486.57 2.25%
Total 7439956123.50 15582593255.65
Note 1: On 31 December 2025 the Company's subsidiary Yide Port obtained long-term
borrowings of RMB 660846067.18 (31 December 2024: RMB 459116477.34) secured
by its proprietary land and fixed assets as well as the proprietary land of Guangdong
Shunkong Lingang Development and Construction Co. Ltd. (hereinafter referred to as
"Shunkong Lingang"). The Company's subsidiary China Merchants Port (Zhoushan)
RoRo Terminal Co. Ltd. (hereinafter referred to as "Zhoushan RoRo") obtained a long-
term loan of RMB 83670817.35 (31 December 2024: RMB 88919018.23) with its land
use right and mortgage of above ground buildings.Note 2: On 31 December 2025 Shenzhen Haixing Port Development Co. Ltd. (hereinafter
referred to as "Shenzhen Haixing") obtained a long-term loan of RMB 1017722746.28
(31 December 2024: RMB 1106773486.57) with the land holding property rights as
collateral and guaranteed by China Merchants Port Holdings and Sinotrans South China
Co. Ltd.Details of mortgage borrowings are as follows:
Company name Closing Balance Opening Balance Collateral and pledge
Bank of China Qianhai Shekou Branch 1017722746.28 1106773486.57 Land use rights of Shenzhen Haixing
China Construction Bank Shunde Branch 112000000.00 136000000.00 Land use rights and fixed assets of Yide Port
Bank of Communications Co. Ltd. Guangdong
Branch Shenzhen Branch of China Merchants 548846067.18 323116477.34 Land use rights of Shunkong Port
Group Finance Co. Ltd.China Merchants Group Finance Co. Ltd. 83670817.35 88919018.23 Land use right and buildings on ground of Zhoushan RoRo
PT Bank Mandiri (Persero) Tbk - 24283761.66 Fixed assets of NPH
Total 1762239630.81 1679092743.80
Note: See Note (VIII) 65 for the above mortgages and pledges.- 117 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
5.000% USD 600 million corporate bond 4199310168.54 4288209912.95
4.000% USD 500 million corporate bond 3510477363.75 3587349206.57
1.820% RMB 3 billion corporate bond 3000000000.00 -
1.980% RMB 2 billion medium term notes 2000000000.00 -
2.180% RMB 2 billion corporate bond 2000000000.00 2000000000.00
1.760% RMB 2 billion corporate bond 2000000000.00 -
2.800% RMB 1500 million medium term notes 1500000000.00 1500000000.00
2.300% RMB 1200 million medium term notes 1200000000.00 1200000000.00
2.100% RMB 800 million medium term notes 800000000.00 800000000.00
2.680% RMB 500 million medium term notes 500000000.00 500000000.00
Total 20709787532.29 13875559119.52
- 118 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable - continued
(2) Statement of changes in bonds payable
Effect of
Interest accrued Amortisation translation of
Name of bonds Face value Coupon rate Date of issue
Term of
the bond Amount of issue Opening Balance
Amount issued in
the current year based on par of premiums
Repayment in financial Default or
value or discounts current year statements
Closing Balance not
denominated in
foreign currencies
5.000% USD 600 million corporate
bond USD 600000000.00 5.0000% 2018-08-06 10 years USD 600000000.00 4374939570.06 - 214269350.00 6411040.00 214936230.51 -96569514.75 4284114214.80 No
4.750% USD 500 million corporate
bond USD 500000000.00 4.7500% 2015-08-03 10 years USD 500000000.00 3661941770.15 - 100372388.81 1960115.12 3759572002.72 -4702271.36 - No
4.000% USD 500 million corporate
bond USD 500000000.00 4.0000% 2022-06-01 5 years USD 500000000.00 3599756588.81 - 142846505.50 2821179.22 142484682.36 -80330320.40 3522609270.77 No
1.820% RMB 3 billion corporate
bond 3000000000.00 1.8200% 2025-08-25 3 years 3000000000.00 - 3000000000.00 19296986.29 - - - 3019296986.29 No
2.690% RMB 3 billion corporate
Bond 3000000000.00 2.6900% 2022-08-30 3 years 3000000000.00 3027415890.40 - 53284109.60 - 3080700000.00 - - No
1.980% RMB 2 billion medium
term notes 2000000000.00 1.9800% 2025-03-25 3 years 2000000000.00 - 2000000000.00 30595068.49 - - - 2030595068.49 No
2.180% RMB 2 billion corporate
bond 2000000000.00 2.1800% 2024-08-23 5 years 2000000000.00 2015648219.17 - 43600000.00 - 43600000.00 - 2015648219.17 No
1.760% RMB 2 billion medium
term notes 2000000000.00 1.7600% 2025-11-10 3 years 2000000000.00 - 2000000000.00 5014794.52 - - - 2005014794.52 No
2.800% RMB 1500 million
medium term notes 1500000000.00 2.8000% 2024-04-03 10 years 1500000000.00 1531413698.63 - 42000000.00 - 42000000.00 - 1531413698.63 No
2.300% RMB 1200 million
medium term notes 1200000000.00 2.3000% 2024-07-12 5 years 1200000000.00 1213081643.84 - 27600000.00 - 27600000.00 - 1213081643.84 No
2.100% RMB 800 million medium
term notes 800000000.00 2.1000% 2024-07-12 3 years 800000000.00 807962739.75 - 16800000.00 - 16800000.00 - 807962739.75 No
2.680% RMB 500 million medium
term notes 500000000.00 2.6800% 2024-04-03 5 years 500000000.00 510022465.74 - 13400000.00 - 13400000.00 - 510022465.74 No
Total — — — — — — — — — — 20742182586.55 7000000000.00 709079203.21 11192334.34 7341092915.59 -181602106.51 20939759102.00 — —
Less: Bonds payable due within
one year — — — — — — — — — — 6866623467.03 — — — — — — — — — — 229971569.71 — —
Bonds payable due after one year — — — — — — — — — — 13875559119.52 — — — — — — — — — — 20709787532.29 — —
- 119 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
Lease payment 3748343293.15 3388957333.56
Less: Unrecognised financing cost 1845629225.85 1900348297.52
Total 1902714067.30 1488609036.04
Less: Lease liabilities due within one year 211853235.22 101402045.53
Net leases liabilities 1690860832.08 1387206990.51
(2) Maturity of lease payments
Item Closing Balance
1st year subsequent to the balance sheet date 297922691.16
2nd year subsequent to the balance sheet date 187789429.53
3rd year subsequent to the balance sheet date 188820250.56
Subsequent years 3073810921.90
Total 3748343293.15
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
37. Long-term payables
Item Closing Balance Opening Balance
Terminal management rights (Note) 3552952940.93 3330284743.90
Sale and leaseback payment 237923089.53 72206327.12
Shareholder loans 36685942.36 -
Special payables 6461237.03 6132944.24
Other 2078590.05 1971373.70
Total 3836101799.90 3410595388.96
Less: Long-term payables due within one year 114496507.83 206012716.21
Long-term payables due after one year 3721605292.07 3204582672.75
- 120 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term payables - continued
Note : Mainly from CICT and TCP terminal management 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 management 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 31 December 2025 the amount payable for the acquisition of
terminal management rights is RMB 879962116.70.TCP a subsidiary of the Company entered into a franchise agreement on the Port of
Paranaguá with the Administration of the Ports of Paranaguá and Antonina- APPA
(hereinafter referred to as "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
31 December 2025 the amount of franchising rights payable was RMB 2672990824.23.
(1) Top five long-term payables at the end of the year
Item Closing Balance Opening Balance
APPA 2672990824.23 2448789645.79
Sri Lanka Ports Authority 882040706.75 883466471.81
Ocean Offshore 2403 Limited 128076334.57 -
China Merchants Finance Lease (Tianjin) Co. Ltd. 109846754.96 72206327.12
Yihai Kerry Arawana Holdings Co. Ltd. 36685942.36 -
Total 3829640562.87 3404462444.72
(2) Special payables
Effect of
Item Opening changes in the Increase for Decrease for Closing Balance scope of the year the year Balance Reason
consolidation
Employee housing fund 6132944.24 - 328292.79 - 6461237.03 Note
Total 6132944.24 - 328292.79 - 6461237.03
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.- 121 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Opening Balance Increase for Decrease for the year the year Closing Balance
Post-employment benefits - net liabilities of
defined benefit plans 576678542.68 65538179.92 163622871.87 478593850.73
Termination benefits 40614858.86 2891637.36 11157508.74 32348987.48
Other long-term benefit (note) 38364643.44 14907600.66 17828704.69 35443539.41
Total 655658044.98 83337417.94 192609085.30 546386377.62
Note : This represents the employee relocation costs of the Company's subsidiary Shantou Port in connection with land acquisition and reservation.- 122 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 - continued
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item Current Year Prior Year
I. Opening balance 593762038.30 509605071.25
II. Defined benefit cost included in profit or loss for the period -37583274.19 26128322.32
1. Current service cost 38722009.56 12161218.04
2. Past service cost -88340000.00 -
3. Interest adjustment 12034716.25 13967104.28
III. Defined benefit cost included in other comprehensive income -37489668.78 65169223.46
1. Actuarial gains -37425594.87 66185897.50
2. Effect of exchange rate changes -64073.91 -1016674.04
IV. Other changes -22994582.57 -7140578.73
1. Benefits paid -27143988.37 -23576039.76
2. Changes in the scope of consolidation 4149405.80 16435461.03
V. At the end of the year 495694512.76 593762038.30
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 recognises 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 recognised 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.- 123 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Item Opening Increase for Decrease for financial Balance the year the year statements Closing Balance Reason
denominated in
foreign currencies
Pending litigation 159435795.50 1800205.62 88909304.78 7079118.97 79405815.31 Note1
External guarantees
provided - 107608404.55 - -1521037.41 106087367.14 Note2
Total 159435795.50 109408610.17 88909304.78 5558081.56 185493182.45
Note 1: This represents the estimated compensation amount RMB 79405815.31 that the
Company's subsidiary TCP may need to pay due to the pending litigation.The decrease in this year is due to the compensation amount of RMB 88909304.78
transferred backed by Zhanjiang Port a subsidiary of the Company resulting from the
settlement of outstanding litigation
Note 2:As of 31 December 2025 the Board of the Group assessed the default risk of related parties
based on the actual operation of the related parties which is equivalent to RMB
107608404.55. Please refer to Note (XV) 5 (3) for details.
40. Deferred income
Effect of changes
Item Opening Balance in the scope of Increase for Decrease for the year the year Closing Balance consolidation
Government grants 1268975316.61 - 8876921.27 354502788.47 923349449.41
Total 1268975316.61 - 8876921.27 354502788.47 923349449.41
(1) Government grants included in deferred income
Category of Closing Balance Amount included in Amount refunded government grants current profit or loss this year Reason for return
Government grants 923349449.41 51963816.21 - Not applicable
Total 923349449.41 51963816.21 - Not applicable
- 124 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Other non-current liabilities
Item Opening Balance Closing Balance
Actuarial cost for the calculation of pension benefit
difference for the public security bureau staff (Note 1) 159573016.67 179019858.67
Other 4869460.69 3700396.17
Total 164442477.36 182720254.84
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 (hereinafter referred to as 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.- 125 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital
Opening Balance Closing Balance
Name of investor Proportion Increase for the Decrease for the Investment amount year year Investment amount Proportion
（%）（%）
China Merchants Port Investment
Development Company Limited 1148648648.00 45.92 - - 1148648648.00 46.28
Zhejiang Seaport Investment and
Operation Group Co. Ltd. 576709537.00 23.06 - - 576709537.00 23.24
China Merchants Gangtong
Development (Shenzhen) 370878000.00 14.83 - - 370878000.00 14.94
Co. Ltd.Infrastructure Investment Fund
Management Co. Ltd. –
infrastructure Investment Fund 64850182.00 2.59 - - 64850182.00 2.61
Partnership (Limited
Partnership)
Broadford International Limited
(hereinafter referred to as 55314208.00 2.21 - - 55314208.00 2.23
"Broadford")
China Africa Development Fund
Co. Ltd. 15610368.00 0.62 - - 15610368.00 0.63
Others (Note) 269297538.00 10.77 351400.00 19817696.00 249831242.00 10.07
Total 2501308481.00 100.00 351400.00 19817696.00 2481842185.00 100.00
Note1: The increased share capital this year is generated by equity incentives as detailed in Note
(XVI).Note2: During the current year the Company repurchased 17347289.00 shares (2024:
2470407.00 shares) through a dedicated securities account for share repurchases via
centralized bidding with a total of 19817696.00 shares repurchased. Payments totaling
RMB 338393205.04 were made during the year for the repurchases (2024: RMB
50559789.14) with cumulative payments amounting to RMB 388952994.18. On 10
October 2025 the Company completed the cancellation procedures for the
aforementioned 19817696.00 repurchased shares (2024: 0.00 share) with the Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
43. Treasury shares
Item Opening Balance Increase for the year Decrease for the Closing year BalanceShare repurchase (VIII）42 50559789.14 338393205.04 388952994.18 -
Total 50559789.14 338393205.04 388952994.18 -
- 126 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Capital Reserve
Item Opening Balance Increase Decrease Closing Balance
For the year of 2025
I. Capital premium 36709528363.44 5489164.28 369135298.18 36345882229.54
Including: Capital contributed by investors 17108331780.58 5489164.28 - 17113820944.86
Differences arising from business combination
involving enterprises under common control 13302937205.73 - - 13302937205.73
Differences arising from acquisition
non-controlling interests 4624739800.75 - - 4624739800.75
Others 1673519576.38 - 369135298.18 1304384278.20
II. Other capital reserve 653453468.23 951302.21 183700384.00 470704386.44
Including: Transfer from capital reserve under the previous
accounting rules -2781133.00 - - -2781133.00
Unexercised share-based payment 506305.80 - 506305.80 -
Other 655728295.43 951302.21 183194078.20 473485519.44
Total 37362981831.67 6440466.49 552835682.18 36816586615.98
For the year of 2024
I. Capital premium 36453130588.72 256397774.72 - 36709528363.44
Including: Capital contributed by investors 17068816277.34 39515503.24 - 17108331780.58
Differences arising from business combination
involving enterprises under common control 13302937205.73 - - 13302937205.73
Differences arising from acquisition
non-controlling interests 4407857529.27 216882271.48 - 4624739800.75
Others 1673519576.38 - - 1673519576.38
II. Other capital reserve 623716214.34 36140304.89 6403051.00 653453468.23
Including: Transfer from capital reserve under the previous
accounting rules -2781133.00 - - -2781133.00
Unexercised share-based payment 6644590.36 264766.44 6403051.00 506305.80
Other 619852756.98 35875538.45 - 655728295.43
Total 37076846803.06 292538079.61 6403051.00 37362981831.67
- 127 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
45. Other comprehensive income
Items of OCI and their impact on income taxes and transfer to profit or loss
2025
Less: Amount Less: Amount
included in other included in other
comprehensive comprehensive Attributable to non-
Item Opening Balance Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the controlling Other changes Closing Balance
year year 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 year the current year
For the year of 2025
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss -125708734.97 92020131.46 - - 192928.31 36036304.99 55790898.16 - -89672429.98
Including: Changes arising from remeasurement of defined
benefit plans -27162681.92 49464273.41 - - 124558.23 23297459.58 26042255.60 - -3865222.34
Other comprehensive income that can't be
reclassified to profit or loss under equity method -157659266.07 40241379.95 - - - 11925433.55 28315946.40 - -145733832.52
Changes in fair value of other equity instruments 59113213.02 2314478.10 - - 68370.08 813411.86 1432696.16 - 59926624.88
II. Other comprehensive income that will be reclassified
subsequently to profit or loss -1432672502.48 1334425946.92 - - - 553181505.95 781244440.97 - -879490996.53
Including: Other comprehensive income recognised under the
equity method -401677243.85 488977551.12 - - - 230672060.82 258305490.30 - -171005183.03
Translation differences of financial statements
denominated in foreign currencies -1030995258.63 845448395.80 - - - 322509445.13 522938950.67 - -708485813.50
Total other comprehensive income -1558381237.45 1426446078.38 - - 192928.31 589217810.94 837035339.13 - -969163426.51
For the year of 2024
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss -22859768.83 -221412074.80 - - -4502591.44 -102848966.14 -114060517.22 - -125708734.97
Including: Changes arising from remeasurement of defined
benefit plans -2709609.54 -70324586.90 - - -11930.28 -24453072.38 -45859584.24 - -27162681.92
Other comprehensive income that can't be
reclassified to profit or loss under equity method -92749398.41 -133077726.79 - - - -64909867.66 -68167859.13 - -157659266.07
Changes in fair value of other equity instruments 72599239.12 -18009761.11 - - -4490661.16 -13486026.10 -33073.85 - 59113213.02
II. Other comprehensive income that will be reclassified
subsequently to profit or loss -880766825.52 -1312433197.04 - - - -551905676.96 -760527520.08 - -1432672502.48
Including: Other comprehensive income recognised under the
equity method -426790507.27 23077622.64 - - - 25113263.42 -2035640.78 - -401677243.85
Translation differences of financial statements
denominated in foreign currencies -453976318.25 -1335510819.68 - - - -577018940.38 -758491879.30 - -1030995258.63
Total other comprehensive income -903626594.35 -1533845271.84 - - -4502591.44 -654754643.10 -874588037.30 - -1558381237.45
- 128 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
46. Specific reserve
Item Opening Balance Increase Decrease Closing Balance
Safety production cost 40074647.27 64416940.44 47212937.32 57278650.39
47. Surplus reserve
2025
Item Opening Balance Increase Decrease Closing Balance
Statutory surplus reserve 1249537330.50 - - 1249537330.50
2024
Item Opening Balance Increase Decrease Closing Balance
Statutory surplus reserve 1095980563.68 153556766.82 - 1249537330.50
Note 1: According to the Company Law of the People's Republic of China and the Articles of the
Company the Company withdraws the statutory surplus reserve at 10% of the annual net
profit. When the accumulated amount of the statutory surplus reserve reaches more than
50% of the registered capital it can no longer be withdrawn. The statutory surplus reserve
can be used to cover losses or increase share capital after approval. As of 31 December
2025 the cumulative amount of our company's statutory surplus reserve fund has reached
50% of the registered capital.
48. Retained earnings
Proportion of
Item Amount appropriation or
allocation
For the year of 2025
Retained earnings at the beginning of the year before adjustment 21957778579.11
Add: Adjustment to Retained earnings at beginning of the year -
Including: Changes in accounting policies -
Retained earnings at the beginning of the year after adjustment 21957778579.11
Increase for the year 4611806694.91
Including: Net profit of the year attributable to shareholders of the Company 4611352247.98
Retained earnings carried forward from other comprehensive
income -
Other 454446.93
Decrease for the year 1839836697.18
Including: Transfer to statutory surplus reserve in the current year -
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1839836697.18 Note 1
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to National Council of Social Security Fund -
Distribution to holders of other equity instruments -
Others -
Retained earnings at the end of the year 24729748576.84
- 129 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Retained earnings - continued
Proportion of
Item Amount appropriation or
allocation
For the year of 2024
Retained earnings at the beginning of the year before adjustment 19045313519.75
Add: Adjustment to Retained earnings at beginning of the year -
Including: Changes in accounting policies -
Retained earnings at the beginning of the year after adjustment 19045313519.75
Increase for the year 4516301317.16
Including: Net profit of the year attributable to shareholders of the Company 4516301317.16
Retained earnings carried forward from other comprehensive income -
Other -
Decrease for the year 1603836257.80
Including: Transfer to statutory surplus reserve in the current year 153556766.82
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1450279490.98
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to National Council of Social Security Fund -
Distribution to holders of other equity instruments -
Others -
Retained earnings at the end of the year 21957778579.11
Note 1: According to the resolution of the shareholders' meeting on 23 May 2025 the total share
capital of the company on the previous trading day (16 June 2025) prior to the application
for dividend distribution was 2501508381 shares. After excluding the 15242574 shares
held in the repurchase special account the total was 2486265807 shares. Based on this
the company distributed a cash dividend of RMB 7.40 (including tax) per ten shares
totaling RMB 1839836697.18.
49. Operating income and operating costs
(1) Details of operating income and operating costs
Item Current Year Prior Year Income Costs Income Costs
Principal operation 17071898673.29 9466243393.64 15943748346.43 8972147936.19
Other operations 174483854.56 189943854.64 187029681.81 223868756.16
Total 17246382527.85 9656187248.28 16130778028.24 9196016692.35
- 130 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
49. 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 costs Operating Operating costs Operating Operating costs Operating income income income income Operating costs
Mainland China Hong Kong
and Taiwan area 9978435334.62 6385521967.67 583324323.05 305787588.26 174483854.56 189943854.64 10736243512.23 6881253410.57
- Pearl River Delta 6846460971.70 3759872234.74 428931723.67 229625961.36 174483854.56 189943854.64 7449876549.93 4179442050.74
- Yangtze River Delta 624606.56 8518229.88 - - - - 624606.56 8518229.88
- Bohai Rim 28724541.44 14775255.63 154392599.38 76161626.90 - - 183117140.82 90936882.53
- Other areas 3102625214.92 2602356247.42 - - - - 3102625214.92 2602356247.42
Other countries 6448810395.23 2713413778.81 61328620.39 61520058.90 - - 6510139015.62 2774933837.71
Total 16427245729.85 9098935746.48 644652943.44 367307647.16 174483854.56 189943854.64 17246382527.85 9656187248.28
- 131 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
49. 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 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/monthly/yearly basis. During the process of rendering services the Group recognises 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 year 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 contract liabilities. At the end of the year the variable considerations arising from sales discount
are set out in Note (VIII) 28.
(4) Descriptions on allocation to remaining performance obligations
At the end of the year 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 446822948.79 of which RMB 343637873.41 is expected to be
recognised as revenue in 2026 and RMB 103185075.38 is expected to be recognised as revenue
in 2027 and subsequent years.
50. Taxes and surcharges
Item Current Year Prior Year
Property tax 83197668.69 79101136.67
Land use tax 37103559.80 36984937.58
City construction and maintenance tax 9376376.49 10881226.12
Education surcharges and local education surcharges 7088205.63 8081655.86
Stamp duty 8552973.22 3673318.12
Others (Note) 221754616.83 193611488.80
Total 367073400.66 332333763.15
Note: Others mainly represent the social contribution tax and tax on services borne by TCP a
subsidiary of the Company equivalent to RMB 208731946.30 (2024: RMB
181212315.70) for the year.
- 132 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
51. General and administrative expenses
Item Current Year Prior Year
Employee benefits 1136560493.96 1352143332.57
Depreciation expenses 82623922.67 69734482.97
Fees paid to agencies 59744373.10 76667277.58
Amortisation of intangible assets 31615270.95 57062967.74
Others 222847231.71 265936221.32
Total 1533391292.39 1821544282.18
52. Research and development expenses
Item Current Year Prior Year
Employee benefits 138539706.69 127706303.07
Direct materials and outsourced R&D 31546990.32 67418187.58
Depreciation and amortisation 4793904.80 4454711.92
Others 2869671.71 2175863.79
Total 177750273.52 201755066.36
53. Financial expenses
Item Current Year Prior Year
Interest expenses 1956321789.62 2255372593.38
Including: Bank and other borrowings 817585732.95 1084714767.25
Bond interest and bill discount 767246124.59 800626160.05
Interest expenses of terminal operation rights (note) 222936588.04 203047018.99
Interest expenses of lease liabilities 109991536.83 70660449.69
Other interest expenses 38561807.21 56170722.54
Less: Capitalized interest expenses 46314263.81 40153474.86
Less: Interest income 379520826.85 477430320.41
Net exchange loss (“-” for income) -44557295.34 109256513.08
Others 18911508.47 10320325.68
Total 1504840912.09 1857365636.87
Note: Details are set out in Note (VIII) 37.
54. Other income
Item Current Year Prior Year Whether it is government subsidy
Business development subsidy 106275887.50 75662052.93 Yes
Transfer from deferred income
(Note VIII 40) 51963816.21 51502491.12 Yes
Subsidy funds for Qianhai
Comprehensive Bonded Zone - 45939617.40 Yes
Others 14187049.71 12306141.84 — —
Total 172426753.42 185410303.29 — —
Including: Government grants 170950037.14 183382851.80 — —
- 133 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
55. Investment income
(1) Details of investment income:
Item Current Year Prior Year
Long-term equity investments income 6324208650.73 6441005613.25
Including: Income from long-term equity investments under
equity method 6334726676.24 6441005613.25
Investment income generated from disposal of long-term equity
investments (loss expressed with "-") -10518025.51 -
Investment income from financial assets held for trading 83692880.64 59078998.12
Investment income from other non-current financial assets 161136.85 36181898.66
Dividend income from investments in other equity instruments 9784500.00 10815000.00
Investment from equity remeasurement at fair value upon
acquisition of control 3856538.50 -
Others -183578.97 -84978.53
Total 6421520127.75 6546996531.50
56. Gains from changes in fair value (“-” for losses)
Item Current Year Prior Year
Financial assets held for trading 42129916.42 40176493.90
Other non-current financial assets 244210.64 350055871.25
Including: Financial assets at fair value through profit or loss 244210.64 350055871.25
Total 42374127.06 390232365.15
57. Provision of credit impairment (“-” for losses)
Item Current Year Prior Year
Credit impairment of accounts receivable -7816439.72 -1772048.18
Reversal of impairment of other receivables -26086425.69 363283803.95
Reversal of impairment of long-term receivables -63300443.53 -10839.43
Impairment reversal of non-current assets due within one year 35033.03 17564.18
Credit impairment of other non-current assets -85839940.47 -88524171.44
Others (Note) -107608404.55 -
Total -290616620.93 272994309.08
Note: The Group has made provision for credit impairment loss for the provision of guarantees to
the related parties the ultimate controlling shareholder of the Group this year as detailed in
Note (VIII) 39.- 134 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
58. Impairment losses (loss expressed with "-")
Item Current Year Prior Year
Impairment loss on prepayments -4329769.64 -
Reversal of impairment losses of inventories 1610.64 -
Impairment losses of long-term equity investments - -8113482.64
Impairment losses of construction in progress -5744701.74 -767306.24
Total -10072860.74 -8880788.88
59. Gains from asset disposals (loss expressed with "-")
Amount included in non-
Item Current Year Prior Year recurring profit or loss
for the current year
Gains from disposal of non-current assets 4071461.15 34062395.75 4071461.15
Including: Gains from disposal of intangible
assets 2763804.93 18456558.06 2763804.93
Gains from disposal of
fixed assets 750456.76 15323446.42 750456.76
Others 557199.46 282391.27 557199.46
Income from non-monetary asset exchange 3320297.91 - 3320297.91
Total 7391759.06 34062395.75 7391759.06
60. Non-operating income
Amount included in
Item Current Year Prior Year non-recurring profit or loss for the current
year
Compensation received for violation of
contracts 43306048.43 25233458.06 43306048.43
Income from relocation compensation 900000.00 9072904.37 900000.00
Gains from retirement or damage of
non-current assets 4038916.72 4433441.49 4038916.72
Including: Gains from retirement
or damage of fixed assets 3263056.74 4433441.49 3263056.74
Exempted current accounts 11586548.10 2087824.66 11586548.10
Others 24088136.18 18191026.74 24088136.18
Total 83919649.43 59018655.32 83919649.43
- 135 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
61. Non-operating expenses
Amount included in
Item Current Year Prior Year non-recurring profit or loss for the
current year
Litigation loss 4866567.86 8725469.87 4866567.86
Losses on retirement of non-current
assets 15709412.55 18274807.12 15709412.55
Including: Losses on retirement
or damage of fixed assets 15709412.55 18274807.12 15709412.55
Expenditure on public welfare
donations 21513529.46 11881883.05 21513529.46
Compensation and liquidated damages 1423460.17 689548.54 1423460.17
Others 14282428.48 30680393.15 14282428.48
Total 57795398.52 70252101.73 57795398.52
62. Borrowing costs
Item Capitalisation rate Capitalisation amount
Construction in progress — — — —
Phase I and II of the second phase of the second phase of the dock
project in the local operation area of the Lingang Liaogeshan 2.81% 11512126.95
Port Area of Shunkong Port
Zhanjiang Port Baoman Port Area Container Terminal
Phase I Expansion Project 2.60% 10425895.30
Dongguan Machong Port Area Berth 2 # and 3 # Project Bulk
Grain Warehouse Phase III Expansion Project 2.85% 680800.12
Other non-current assets — — — —
Advances for channels 4.35% 23695441.44
Sub-total — — 46314263.81
Interest expenses included in profit or loss for the year
(Excludes interest expense on terminal operating rights and — — 1577079400.94lease liabilities）
Total — — 1623393664.75
Note: The capitalization rate is calculated and determined according to the weighted average
interest rate of general borrowings.- 136 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Translation of foreign currencies
Item Current Year
Exchange differences included in profit or loss for the year
(Net income is represented with "-") -44557295.34
Total -44557295.34
64. Income tax expenses
Item Current Year Prior Year
Current income tax expenses 1354611167.06 1056743121.95
Adjustment of deferred income tax expenses 115683847.89 196094824.95
Total 1470295014.95 1252837946.90
Reconciliation between income tax expense and accounting profit is as follows:
Item Current Year
Total profit 10376286937.44
Income tax expenses calculated at 25% 2594071734.36
Effect of non-deductible costs expenses and losses 267665831.62
Accrued income tax 551983778.92
Effect of deductible temporary differences and deductible losses
for which deferred tax assets are not recognised in the year 68971787.53
Effect of non-tax-free income (Note) -1035854082.87
Effect of tax incentives and changes in tax rate -767372012.47
Effect of different tax rates of subsidiaries operating in other jurisdictions -191183279.55
Effect of utilizing deductible losses for which deferred tax assets
were not recognised in prior year -57110867.98
Effect of adjustments to income tax of prior year 12555217.01
Others 26566908.38
Income tax expenses 1470295014.95
Note: This mainly represents the tax effect of income from investments in joint ventures and
associates.- 137 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Assets with restricted ownership and use right
Closing Balance Opening Balance
Item
Book value Carrying amount Type of restriction Status of restriction Book value Carrying amount Type of restriction Status of restriction
Cash and bank balances Restricted margin Interest receivable Restricted margin Interest receivable
(Note 1) 100488698.75 100488698.75 interest receivable not performance bond 115331146.22 115331146.22 interest receivable not performance bond actually received frozen funds etc actually received frozen funds etc
Fixed assets (Note 2) 1440293745.49 1124374793.46 Mortgage Mortgage borrowings 551053503.71 467531821.78 Mortgage Mortgage borrowings
Intangible assets
(Note 2) 756017600.61 603900037.67 Mortgage Mortgage borrowings 624297693.92 624297693.92 Mortgage Mortgage borrowings
Total 2296800044.85 1828763529.88 1290682343.85 1207160661.92
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.- 138 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Provision for impairment of assets and provision for bad debts
Effect of Transfer-out Effect of translation
Item Opening Balance changes in the Provision for the Reversal for the
Write-off and Other Other of financial
scope of year year charge-off for
due to sale in
the current increases decreases statements Closing Balance
consolidation the year year for the year for the year denominated in foreign currencies
Provision for bad debts of accounts
receivable 88963445.09 15656769.90 -7840330.18 -32782994.15 - - - 1489480.96 65486371.62
Provision for bad debts of other receivables 565593638.90 30023490.42 -3937064.73 -1682741.75 - - - 48164751.35 638162074.19
Provision for impairment of prepayments 4329769.64 - - - - - -69151.38 4260618.26
Provision for decline in value of inventories 1153436.72 - -1610.64 -508503.45 - - -113192.30 -5495.51 524634.82
Provision for impairment of long-term
receivables 1136408.92 63300623.97 -180.44 - - - - - 64436852.45
Provision for non-current assets due
within one year 35033.03 - -35033.03 - - - - - -
Provision for impairment of long-term equity
investments 335422262.62 - - - - - - -59035.28 335363227.34
Provision for impairment of fixed assets 213290383.06 - - - -960859.00 - -42717.28 -6123.35 212280683.43
Provision for impairment of construction in
progress 778478.53 5744701.74 - - - - - -110933.20 6412247.07
Provision for impairment of intangible assets 57010270.07 - - - - - 57010270.07
Provision for impairment of goodwill 970663044.33 - - - - - - - 970663044.33
Provision for impairment of other
non-current assets 88524171.44 85839940.47 - - - - - - 174364111.91
Other credit impairment provision 107608404.55 - - - - - -1521037.41 106087367.14
Total 2322570572.71 312503700.69 -11814219.02 -34974239.35 -960859.00 - -155909.58 47882456.18 2635051502.63
- 139 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
(1) Cash relating to operating activities
Proceeds from other operating activities
Item Current Year Prior Year
Interest income 283779032.24 307426299.38
Advance payment for waterway 267849800.00 -
Government grants 125437909.69 420033639.31
Guarantees and deposits 37157549.08 49702895.76
Insurance indemnities 16600093.92 5913248.16
Operation compensation received - 337185774.00
Others 248243127.81 292907237.50
Total 979067512.74 1413169094.11
Payments for other operating activities
Item Current Year Prior Year
Payment of operating costs and management expenses and other
daily operating related expenditures 196437143.86 129352215.13
Advance payment 68588791.17 123589342.34
Guarantees and deposits 47900153.15 34887031.26
Others 308930096.55 488214418.74
Total 621856184.73 776043007.47
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item Current Year Prior Year
Recovered structured deposits 48195000000.00 26450000000.00
Dividends received 3002508159.17 2843360904.43
Proceeds from disposal of investments (Note 1) 124800000.00 1113331868.18
Total 51322308159.17 30406692772.61
Note1: The investment received this year mainly refers to the disposal of shares of Anton
Holdings Co. Ltd. (hereinafter referred to as "Anton Holdings"). The investment
received last year mainly consisted of disposal of shares of Qingdao Port International
Co. Ltd.- 140 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Cash payments relating to significant investing activities
Item Current Year Prior Year
Purchase of structured deposits 50085000000.00 27450000000.00
Purchase and construction of long-term assets 2177197094.25 1945061261.66
Total 52262197094.25 29395061261.66
Proceeds from other investing activities
Item Current Year Prior Year
Collection of marine area usage fee on behalf of other parties 166565821.29 -
Collection of marine area usage fee by Dongguan
Shenchiwan Port Affairs Co.Ltd 60469329.00 -
Others 16841583.11 16260626.10
Total 243876733.40 16260626.10
Payments for other investing activities
Item Current Year Prior Year
Payment of marine area usage fee Shantou Port 166565821.29 -
Payment of taxes on land acquisition by ASJ - 259533828.27
Others 32247426.76 1606719.07
Total 198813248.05 261140547.34
Proceeds from other financing activities
Item Current Year Prior Year
Sale and leaseback proceeds 173214720.00 40000000.00
Receipts from Shantou Port shareholder’s advance payment
of marine area usage fees 111500000.00 -
Others 11831089.81 15862550.05
Total 296545809.81 55862550.05
- 141 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Payment for other financing activities
Item Current Year Prior Year
Repayment of perpetual bonds 1432284747.07 -
Payment for lease and franchise fee 398027533.94 316100576.04
Repurchase shares of China Merchants Port Group
Co. Ltd. 338393205.04 50559789.14
Payment for the Company's acquisition of non-controlling
interests of CM Port - 148276411.09
Others 26076977.32 24987752.08
Total 2194782463.37 539924528.35
Changes in liabilities arising from financing activities
Increase for the year Decrease for the year
Item Opening Balance Cash changes Non-cash Cash changes Non-cash Closing Balance changes changes
Short-term borrowings 12791242141.69 21573023304.86 430550682.90 14376211891.72 642783406.41 19775820831.32
Long-term borrowings 15582593255.65 1939746727.88 292778799.12 4822075965.73 5553086693.42 7439956123.50
Non-current liabilities
due within one year 10506682795.60 - 7176147143.61 11561297375.53 79009878.35 6042522685.33
Bonds payable 13875559119.52 7000000000.00 - - 165771587.23 20709787532.29
Lease liabilities 1387206990.51 - 566013255.05 - 262359413.48 1690860832.08
long-term payables 3204582672.75 209873219.40 528747976.77 2491841.67 219106735.18 3721605292.07
Dividends payable 132334744.28 - 4951478517.33 4948643790.82 - 135169470.79
Other current liabilities 4020214246.58 4000000000.00 47101917.80 6063073972.60 - 2004242191.78
Total 61500415966.58 34722643252.14 13992818292.58 41773794838.07 6922117714.07 61519964959.16
(4) The Group has no significant 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 year 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.- 142 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Year Prior Year
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 8905991922.49 8878506309.91
Add: Impairment losses 10072860.74 8880788.88
Provision of credit impairment 290616620.93 -272994309.08
Depreciation of fixed assets 2049538759.19 1953338801.43
Depreciation of investment properties 126038336.08 181519507.74
Depreciation of right-of-use assets 328875072.88 343623899.63
Amortisation of intangible assets 711080186.01 688356905.31
Amortisation of long-term deferred expenses 100971541.50 100433522.79
Gains from disposal of fixed assets intangible assets
and other long-term assets -7391759.06 -34062395.75
Losses on retirement of fixed assets intangible assets
and other long-term assets 11670495.83 13841365.63
Gains rising from changes in fair value ("-" for gains) -42374127.06 -390232365.15
Financial expenses 1769754811.67 2311915401.98
Investment income ("-" for income) -6421520127.75 -6546996531.50
Decrease in deferred tax assets ("-" for increase) 9993685.93 49582269.26
Increase in deferred tax liabilities 104370111.36 146512555.69
Increase in inventories ("-" for increase) -36629602.91 -50978635.81
Decrease in operating receivables ("-" for increase) 192696.25 146070761.75
Increase in operating payables ("-" for decrease) 263180904.97 485894971.69
Net cash inflow from operating activities 8174432389.05 8013212824.40
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:
Cash at the end of the year 15244357662.04 16515069554.91
Less: Opening balance of cash 16515069554.91 16018613631.10
Add: Cash equivalents at the end of the year - -
Less: Opening balance of cash equivalents - -
Net (decrease)/increase in cash and cash equivalents -1270711892.87 496455923.81
(2) Cash and cash equivalents at the end of the year
Item Closing Balance Opening Balance
I. Cash 15244357662.04 16515069554.91
Including: Cash on hand 191636.31 457486.90
Bank deposits available for payment at any time 15050273330.58 16444638576.67
Other monetary funds available for payment at any time 193892695.15 69973491.34
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the year 15244357662.04 16515069554.91
- 143 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Payment for dividends profit distributions or interest
Item Current Year Prior Year
Dividends and profits paid to non-controlling shareholders
of subsidiaries 3163208603.63 3553580816.50
Cash paid for interest repayment 1673474864.06 1955539593.93
Profit distributions 1839908417.00 1452793553.86
Total 6676591884.69 6961913964.29
(4) The Group has no limited scope of use but is still listed as cash and cash equivalents.
(5) See Note (VIII) 1 (3) for details of cash at bank and on hand not belonging to cash and cash
equivalents.- 144 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Foreign currency monetary items
Item Closing Balance of Foreign currency Exchange rate Closing Balance of RMB
Cash and bank balances 3315013093.30
Including: HKD 6950166.79 0.9032 6277390.64
USD 200558290.59 7.0288 1409684112.90
RMB 1863532961.33 1.0000 1863532961.33
EUR 2968362.12 8.2355 24445946.24
AUD 2361315.83 4.6892 11072682.19
Accounts receivable 40457946.36
Including: USD 5215880.50 7.0288 36661380.86
EUR 461000.00 8.2355 3796565.50
Other receivables 522662772.46
Including: HKD 667661.36 0.9032 603031.74
USD 2196642.72 7.0288 15439762.35
EUR 16727.30 8.2355 137757.68
RMB 506482220.69 1.0000 506482220.69
Long-term receivables 1281362958.94
Including: HKD 2366680.97 0.9032 2137586.25
USD 1023180.69 7.0288 7191732.43
EUR 29029189.56 8.2355 239069890.62
AUD 220285709.64 4.6892 1032963749.64
Short-term borrowings 1240000000.00
Including: RMB 1240000000.00 1.0000 1240000000.00
Accounts payable 18446717.71
Including: HKD 2642487.52 0.9032 2386694.73
USD 2186561.90 7.0288 15368906.28
EUR 68423.01 8.2355 563497.70
RMB 127619.00 1.0000 127619.00
Other payables 301958314.85
Including: HKD 39807256.57 0.9032 35953914.13
USD 31343525.45 7.0288 220307371.68
EUR 102570.00 8.2355 844715.24
RMB 44852313.80 1.0000 44852313.80
Non-current liabilities due
within one year 127531021.74
Including: USD 13791252.17 7.0288 96935953.25
RMB 30595068.49 1.0000 30595068.49
Bonds payable 9709787532.30
Including: USD 1096885319.30 7.0288 7709787532.30
RMB 2000000000.00 1.0000 2000000000.00
- 145 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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. Operating income
Lease income 327825231.69
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 226527243.20
2nd year 147218460.94
3rd year 65558125.14
4th year 45625303.05
5th year 16278501.34
Over 5 years 72037928.73
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 years to 38.5 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 109991536.83
Short-term lease expenses that are accounted for using simplified approach
and included in cost of related assets or profit or loss for the year 67625674.06
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 year
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 5116445.28
Total cash outflows relating to leases 226981079.86
Losses from sale and leaseback transactions 10224962.17
Cash inflows from sale and leaseback transactions 173214720.00
Cash outflows from sale and leaseback transactions 21941578.19
Others -
- 146 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
71. 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 Company 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 2-5 years. As the Company 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 recognised 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
recognised as interest expenses.(IX) R&D EXPENDITURE
1. Disclosure by nature of expenses
Item Current Year Prior Year
Employee benefits 144725172.10 130912466.55
Direct materials and outsourced R&D 41040415.17 82743846.15
Depreciation and amortisation 5025793.67 4568822.85
Others 21743509.89 31884552.82
Total 212534890.83 250109688.37
Including: R&D expenditure recorded as expenses 177750273.52 201755066.36
R&D expenditure capitalised 34784617.31 48354622.01
- 147 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IX) R&D EXPENDITURE - continued
2. Expenditures on R&D projects which are eligible for capitalisation
Increase Decrease
Item Opening Balance Internal Recognised as Recognised as fixed Transferred to profit Closing Balance
development costs intangible assets assets or loss for the year
Digital Petrochemical Terminal
(Phase II) 6080864.69 6930860.43 - - - 13011725.12
ePort comprehensive service
platform 43805653.86 - 43805653.86 - - -
Other R&D projects 13508535.14 42099794.03 2645976.64 17493440.77 14246037.15 21222874.61
Total 63395053.69 49030654.46 46451630.50 17493440.77 14246037.15 34234599.73
Including: Data resources - - - - - -
- 148 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION
1. Business combination not involving enterprises under common control
In January 2025 China United Tally Co. Ltd. Shantou (hereinafter referred to as 'China Tally')
an associate of the Company’s subsidiary Shantou Port absorbed Shantou Zhongli Wailun tally
Co. Ltd. (hereinafter referred to as 'Shantou Zhongli') a subsidiary of Shantou Port. After the
transaction Shantou Port holds 62.50% shares of China Tally which contributs to business
combination not involving enterprises under common control. Consequently China Tally has
been in the scope of consolidation for the current year. Shantou Zhongli was deregistered on 14
February 2025 after the transaction.
2. Business combination under the common control
There is no business combination under the common control of the Group in the current year.
3. Reverse purchase
The Group has no reverse purchase in the current year.
4. Disposal of subsidiaries
The Group has no disposal of subsidiaries in the current year.- 149 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION - continued
5. Change in consolidation scope for other reasons
The Group has not changed the consolidation scope for other reasons this year.(XI) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group - Major subsidiaries
Principal Registered capital Shareholding ratio
Name of the subsidiary place of Place of Nature of (RMB'0000 of the Company
business incorporation business unless otherwise (%)
Acquisition method
specified) Direct Indirect
Shenzhen Chiwan International Freight Agency Shenzhen Shenzhen China Logistics support Co. Ltd. China services 550.00 100.00 - Established through investment
Chiwan Port and Shipping (Hong Kong) Co. Ltd.(hereinafter referred to as "Wharf Holdings HK China HK China Investment holding HKD 100000.00 100.00 - Established through investment
Hong Kong ")
Dongguan Shenchiwan Port Affairs Co. Ltd. Dongguan Logistics support
(hereinafter referred to as "Dongguan Port Affairs") China Dongguan China services 45000.00 85.00 - Established through investment
Dongguan Shenchiwan Wharf Co. Ltd. Dongguan Logistics support
(hereinafter referred to as "Dongguan Wharf") China Dongguan China services 40000.00 100.00 - Established through investment
Shenzhen Chiwangang Container Co. Ltd. Shenzhen Shenzhen China Logistics support 28820.00 100.00 - Business combination involving China services enterprises under common control
Shenzhen Chiwan Port Development Co. Ltd.(hereinafter referred to as "Shenchiwan Shenzhen Shenzhen China Logistics support China services 10000.00 100.00 -
Business combination involving
Development") enterprises under common control
Chiwan Container Terminal Co. Ltd. Shenzhen Logistics support China Shenzhen China services USD 95300000.00 55.00 20.00
Business combination involving
enterprises under common control
Shenzhen Chiwan Tugboat Co. Ltd. Shenzhen Logistics support Business combination involving
(hereinafter referred to as "Shenchiwan Tugboat") China Shenzhen China services 2400.00 100.00 - enterprises under common control
Chiwan Shipping (Hong Kong) Limited Logistics support Business combination involving
(hereinafter referred to as "Chiwan Shipping") HK China HK China services HKD 800000.00 100.00 - enterprises under common control
CM Port (Note 1) HK China HK China Investment holding HKD 0.37 49.30 Business combination involving 48730938800.00 enterprises under common control
China Merchants Bonded Logistics Co. Ltd. Shenzhen Shenzhen China Logistics support 70000.00 40.00 60.00 Business combination involving China services enterprises under common control
China Merchants Holdings (International)
Information Technology Co. Ltd. (hereinafter Shenzhen Shenzhen China IT service 8784.82 56.26 43.74 Business combination involving
referred to as " CM International Tech ") China enterprises under common control
China Merchants International (China) Shenzhen
Investment Co. Ltd. China Shenzhen China Investment holding USD 67400000.00 - 100.00
Business combination involving
enterprises under common control
China Merchants International Container Terminal
(Qingdao) Co. Ltd. Qingdao China Qingdao China
Logistics support USD 206300000.00 - 100.00 Business combination involving services enterprises under common control
China Merchants Container Services Limited HK China HK China Logistics support HKD 500000.00 - 100.00 Business combination involving services enterprises under common control
China Merchants Port (Shenzhen) Co. Ltd. Shenzhen Logistics support Business combination involving China Shenzhen China services 55000.00 - 100.00 enterprises under common control
Shenzhen Haiqin Project Management Co. Ltd. Shenzhen China Shenzhen China
Engineering Business combination involving
supervision service 1000.00 - 100.00 enterprises under common control
Antonje Wharf Storage Service (Shenzhen) Shenzhen Preparation for the
Co. Ltd. China Shenzhen China warehousing
HKD
100000000.00-100.00
Business combination involving
project enterprises under common control
ASJ Shenzhen
Preparation for the
Shenzhen China warehousing HKD - 100.00 Business combination involving China project 520000000.00 enterprises under common control
China Merchants International Terminal
(Qingdao) Co. Ltd. Qingdao China Qingdao China
Logistics support Business combination involving
services USD 44000000.00 - 90.10 enterprises under common control
CICT Sri Lanka Sri Lanka Logistics support services USD 150000100.00 - 85.00
Business combination involving
enterprises under common control
Magang Godown & Wharf Shenzhen China Shenzhen China
Logistics support Business combination involving
services 33500.00 - 100.00 enterprises under common control
Zhangzhou China Merchants Tugboat Co. Ltd. Zhangzhou Zhangzhou Logistics support China China services 1500.00 - 100.00
Business combination involving
enterprises under common control
Zhangzhou China Merchants Port Co. Ltd. Zhangzhou Zhangzhou Logistics support 122700.00 - 60.00 Business combination involving China China services enterprises under common control
Zhangzhou Investment Promotion Bureau
Xiamenwan Port Affairs Co. Ltd. (hereinafter Zhangzhou Zhangzhou Logistics support Business combination involving
referred to as "Xiamenwan Port Affairs") (Note 2) China China services
44450.00 - 31.00 enterprises under common control
Shekou Container Terminals Co. Ltd. Shenzhen China Shenzhen China
Logistics support HKD Business combination involving
services 618201200.00 - 100.00 enterprises under common control
Shenzhen Lianyunjie Container Terminals Co. Ltd. Shenzhen China Shenzhen China
Logistics support
services 60854.90 - 100.00
Business combination involving
enterprises under common control
Anxunjie Container Terminals (Shenzhen) Shenzhen Shenzhen China Logistics support Co. Ltd. China services 127600.00 - 100.00
Business combination involving
enterprises under common control
Anyunjie Port Warehousing Service (Shenzhen) Shenzhen Preparation for the
Co. Ltd. China Shenzhen China warehousing 6060.00 - 100.00
Business combination involving
project enterprises under common control
- 150 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Principal Shareholding ratio
Name of the subsidiary place of Place of Nature of
Registered capital
incorporation business (RMB'0000 unless
of the Company Acquisition method
business otherwise specified) (%) Direct Indirect
Shenzhen Haixing Shenzhen Shenzhen Logistics support 53072.92 - 67.00 Business combination involving China China services enterprises under common control
Shenzhen Lianyongtong Terminal Co. Ltd. Shenzhen Shenzhen Logistics support China China services USD 7000000.00 - 100.00
Business combination involving
enterprises under common control
Yide Port Foshan China Foshan China Logistics support Business combination involving services 21600.00 51.00 - enterprises under common control
Mega SCT BVI BVI Investment USD 120.00 - 80.00 Business combination involving holding enterprises under common control
Oasis King International Limited BVI BVI Investment USD 100.00 - 100.00 Business combination involving holding enterprises under common control
Lome Container Terminal S.A. (Note 3) Republic of Republic of Logistics support XOF 200000000.00 - 100.00 Business combination involving Togo Togo services enterprises under common control
Gainpro Resources Limited BVI BVI Investment USD1.00 - 76.47 Business combination involving holding enterprises under common control
Hambantota International Port Group (Private)
Limited Sri Lanka Sri Lanka
Logistics support USD
services 1145480000.00 - 85.00
Business combination involving
enterprises under common control
Shantou port Shantou Logistics support Business combination involving China Shantou China services 12500.00 - 60.00 enterprises under common control
Shenzhen Jinyu Rongtai Investment Development Shenzhen Shenzhen Property lease
Co. Ltd. China China etc. 80000.00 - 100.00 Asset acquisition
Shenzhen Merchants Qianhaiwan Real Estate Shenzhen Shenzhen Property lease
Co. Ltd. China China etc. 20000.00 - 100.00 Asset acquisition
Juzhongzhi Investment (Shenzhen) Co. Ltd. Shenzhen Shenzhen Investment China China consulting 4000.00 - 75.00
Business combination involving
enterprises under common control
Shantou Zhonglian Shantou Shantou China Logistics support 380.00 - 62.50 Business combination not involving China services enterprises under common control
Shenzhen Lianda Tugboat Co. Ltd. Shenzhen Shenzhen Logistics support Business combination involving China China services 3000.00 - 60.29 enterprises under common control
China Ocean Shipping Tally Zhangzhou Co. Ltd. Zhangzhou Zhangzhou Logistics support China China services 200.00 - 84.00
Business combination involving
enterprises under common control
China Merchants Holdings (Djibouti) FZE Djibouti Djibouti Logistics support services USD 38140000.00 - 100.00
Business combination involving
enterprises under common control
Xinda Resources Limited BVI BVI Investment holding USD 107620000.00 - 77.45
Business combination involving
enterprises under common control
Kong Rise Development Limited HK China HK China Investment holding USD 107620000.00 - 100.00
Business combination involving
enterprises under common control
TCP Brazil Brazil Logistics support services BRL 68851600.00 - 100.00
Business combination not involving
enterprises under common control
Direct Achieve Investments Limited HK China HK China Investment holding USD 814781300.00 - 100.00
Business combination involving
enterprises under common control
Zhoushan RoRo Zhoushan Zhoushan Logistics support China China services 17307.86 51.00 - Asset acquisition
Zhanjiang Port Zhanjiang Zhanjiang Logistics support China China services 587420.91 30.78 27.58
Business combination not involving
enterprises under common control
Zhanjiang Port International Container Terminal Zhanjiang Zhanjiang Logistics support 60000.00 - 80.00 Business combination not involving Co. Ltd. China China services enterprises under common control
Zhanjiang Port Petrochemical Terminal Co. Ltd. Zhanjiang Zhanjiang Logistics support
(Note 4) China China services 18000.00 - 50.00
Business combination not involving
enterprises under common control
China Ocean Shipping Tally Co. Ltd. Zhanjiang Zhanjiang Zhanjiang Logistics support Business combination not involving China China services 300.00 - 84.00 enterprises under common control
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support 5000.00 - 100.00 Business combination not involving Co. Ltd. China China services enterprises under common control
Zhanjiang Port Logistics Zhanjiang Zhanjiang Logistics support China China services 10000.00 - 100.00
Business combination not involving
enterprises under common control
Guangdong Zhanjiang Port Longteng Shipping Zhanjiang Zhanjiang Logistics support
Co. Ltd. China China services 9000.00 - 51.00
Business combination not involving
enterprises under common control
Shantou Port Tugboat Service Co. Ltd. Shantou China Shantou China
Logistics support
services 1000.00 - 100.00 Established through investment
Sanya Merchants Port Development Co. Ltd. Sanya China Sanya China Logistics support services 1000.00 51.00 - Established through investment
China Merchants Port Modern Logistics
Technology (Shenzhen) Co. Ltd. (Original name: Shenzhen Shenzhen Owning China HKD - 100.00 Business combination involving China Division of Malai Warehousing (Shenzhen) China China Qianhai property 1600000000.00 enterprises under common control
Co. Ltd.)
Ports Development (Hong Kong) Limited Hong Kong Hong Kong Investment China China holding 2768291.56 100.00 - Established through investment
Property
Shunkong Port Foshan China Foshan China development and 43379.95 51.00 - Asset acquisition
management
South Asia Commercial and Logistic Hub Limited Sri Lanka Sri Lanka Logistics support USD services 37140000.00 - 70.00 Established through investment
NPH Indonesia Indonesia Logistics support IDR Business combination not involving services 281394199000.00 51.00 - enterprises under common control
- 151 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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: China Merchants Group (Hong Kong) Co. Ltd. (hereinafter referred to as "CMHK")
accounts for 21.85% of the total issued ordinary shares of China Merchants Port Holdings.On 19 June 2018 the Company signed the Agreement on Concerted Action of China
Merchants Port Holdings Limited with CMHK. According to the agreement CMHK has
the voting right of China Merchants Port Holdings entrusted to exercise when voting on
the matters to be considered at the General Meeting of Port Holding Shareholders of China
Merchants Group they are unconditionally consistent with the Company and the opinions
of the Company shall prevail. In March 2022 the Company transferred 43.00% of the
shares held by China Merchants Group Port Holdings to its Hong Kong wholly-owned
subsidiary Port Development (Hong Kong) Co. Ltd. Therefore the Group holds 71.52%
of the voting rights of China Merchants Group Port Holdings in total and can control it.Note 2: The Group signed the Equity Custody Agreement with China Merchants Zhangzhou
Development Zone Co. Ltd. which agreed that China Merchants Zhangzhou
Development Zone Co. Ltd. entrusted its 29% equity of Xiamenwan Port Affairs to the
Group for operation and management. Therefore the Group has 60% of the voting rights
in Xiamenwan Port Affairs which can be controlled and included in the consolidation
scope of the Group's consolidated financial statements.Note 3: The Group has the right to control Lome Container Terminal S.A. by appointing most
members of the Executive Committee so the Group includes the company into the
consolidation scope 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.- 152 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
For the year of 2025
Proportion of Profit or loss
Name of the ownership interest attributable to non-
Dividends distributed Closing balance of
held by the non- controlling to non-controlling non-controlling subsidiary controlling shareholders in the shareholders in the interests at the end
shareholders (%) current year current year of the year
CM Port 50.33 4353804976.08 1168378259.06 62386045963.64
For the year of 2024
Proportion of Profit or loss
ownership interest attributable to non- Dividends distributed Closing balance of Name of the
subsidiary held by the non- controlling
to non-controlling non-controlling
controlling shareholders in the shareholders in the interests at the end
shareholders (%) current year current year of the year
CM Port 50.33 4277480912.41 1774966740.92 61825440800.08
- 153 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Name of the Closing Balance Opening Balance
subsidiary Current assets Non-current Total assets Current Non-current assets liabilities liabilities Total liabilities Current assets
Non-current Total assets Current Non-current assets liabilities liabilities Total liabilities
CM Port 16951536855.85 137055044454.74 154006581310.59 23735547354.21 21470010459.46 45205557813.67 15225606631.78 135382012965.53 150607619597.31 22281042457.07 21803874037.96 44084916495.03
Name of the Current Year Prior Year
subsidiary Operating income Net profit Total Cash flows from comprehensive income operating activities Operating income Net profit
Total Cash flows from
comprehensive income operating activities
CM Port 12441209669.47 7443789947.75 8736642698.20 6368687421.03 10990023251.60 7477357716.48 6371332629.59 5708869820.55
- 154 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
During this year there were no changes of the Group in ownership interests in subsidiaries without
losing control over the subsidiaries.
3. Interests in joint ventures and associates
(1) Significant joint ventures or associates
Proportion of ownership
Investee Principal place Place of of business registration Nature of business
interests held by the Proportion of voting Accounting treatment of
Group (%) rights (%) investments in associates
Direct Indirect
Associate
SIPG Shanghai China Shanghai China Port and container terminal business - 28.06 28.06 Equity method
Ningbo Zhoushan Ningbo China Ningbo China Port and container terminal business 20.98 2.10 23.08 Equity method
- 155 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate
SIPG
Item Closing Balance / Opening Balance /
Current Year Prior Year
Current assets 47413401186.78 48744038847.45
Including: Cash and cash equivalents 31597464469.62 32830782585.55
Non-current assets 174322241805.95 163311502225.58
Total assets 221735642992.73 212055541073.03
Current liabilities 27825518945.32 23068287468.52
Non-current liabilities 37978516336.38 41578448514.91
Total liabilities 65804035281.70 64646735983.43
Net assets 155931607711.03 147408805089.60
Non-controlling interests 14990095964.43 14101913028.59
Net assets attributable to owners of the Company 140941511746.60 133306892061.01
Share of net assets calculated based on the proportion of
ownership interests 39541866969.29 37392583223.11
Adjustments
- Goodwill 2427508397.27 2427508397.27
- Others 213133462.53 222282154.18
Carrying amount of equity investments in associates 42182508829.09 40042373774.56
Fair value of publicly quoted equity investments in associates 35399715619.90 39971634611.40
Operating income 39611497351.53 38116972285.82
Financial expenses 630411404.37 504486954.24
Income tax expenses 3257029262.19 2652365896.79
Net profit 14953696046.09 16063786892.13
Net profit attributable to the owner of the parent company of
the investee in the current year 13564589175.03 14954353821.25
Other comprehensive income 178319.65 281406740.21
Total comprehensive income 14953874365.74 16345193632.34
Dividends received from associates in the current year 1273606004.78 1449951451.59
- 156 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Item Closing Balance / Opening Balance/
Current Year Prior Year
Current assets 23642829000.00 15453223000.00
Including: Cash and cash equivalents 7454715000.00 4586107000.00
Non-current assets 99776714000.00 97445761000.00
Total assets 123419543000.00 112898984000.00
Current liabilities 24178804000.00 17449594000.00
Non-current liabilities 9131706000.00 9899823000.00
Total liabilities 33310510000.00 27349417000.00
Net assets 90109033000.00 85549567000.00
Non-controlling interests 9361536000.00 7256126000.00
Net assets attributable to owners of the Company 80747497000.00 78293441000.00
Share of net assets calculated based on the proportion of
ownership interests 18636522307.60 18070126182.80
Adjustments
- Goodwill 1231115756.87 1231115756.87
- Others 130502729.48 120244072.03
Carrying amount of equity investments in associates 19998140793.95 19421486011.70
Fair value of publicly quoted equity investments in associates 16296791509.35 17284475843.25
Operating income 31020365000.00 28702311000.00
Financial expenses 105974000.00 203921000.00
Income tax expenses 1541350000.00 1509655000.00
Financial expenses 105974000.00 203921000.00
Income tax expenses 1541350000.00 1509655000.00
Net profit 5667764000.00 5408738000.00
Net profit attributable to the owner of the parent company of
the investee in the current year 5162938000.00 4897513000.00
Other comprehensive income -102098000.00 110866000.00
Total comprehensive income 5565666000.00 5519604000.00
Dividends received from associates in the current year 619547445.81 408578523.82
Note: Ningbo Zhoushan's financial data are accurate to the nearest RMB 1000.00.- 157 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
5. Summarized financial information of insignificant associates and joint ventures
Item Closing Balance / Opening Balance/ Current Year Prior Year
Joint ventures:
Total carrying amount of investments 9261898509.63 9307873045.30
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 299080492.93 367446997.79
- Other comprehensive income 60392562.78 161730408.57
- Total comprehensive income 359473055.71 529177406.36
Associates:
Total carrying amount of investments 31630551932.20 31246297063.40
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 1038238586.18 757730103.41
- Other comprehensive losses (Income) ("-" for losses) 489612977.27 -375707391.94
- Total comprehensive income 1527851563.45 382022711.47
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.(XII) GOVERNMENT GRANTS
1. Government grants recognised as receivables at the end of current year
Balance of receivables at the end of current year -
2. Liabilities involving government grants
Amount
Item Opening
New
government included in
Amount
Balance non-operating included in Other changes Closing Balance
Related to
grants income other income
assets/income
Deferred income 1268975316.61 8876921.27 - 51963816.21 -302538972.26 923349449.41 Related to assets
Total 1268975316.61 8876921.27 - 51963816.21 -302538972.26 923349449.41 — —
- 158 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS - continued
3. Government grants included in profit or loss
Item Current Year Prior Year
Business development subsidy 106275887.50 75662052.93
Subsidy fund for Qianhai Comprehensive Bonded Zone - 45939617.40
Special operation subsidy 1300000.00 3184128.00
Others 11410333.43 7094562.35
Total 118986220.93 131880360.68
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances financial assets held for
trading bills receivable accounts receivable receivables under financing other receivables long-
term receivables other non-current financial assets borrowings bills 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 or 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 and policies
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.- 159 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
1. Risk management objectives and policies - 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 EUR and AUD.Except for part of the purchases and sales the Group's other principal activities are denominated
and settled in RMB. As at 31 December 2025 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 Assets Liabilities Closing Balance Opening Balance Closing Balance Opening Balance
HKD 35333835.31 506851221.94 456993404.43 36479381.62
USD 90451325.27 73334708.12 235676277.96 217821536.39
RMB (Note) 2370015182.02 1305729601.40 3315575001.29 6858128218.76
EUR 269524555.00 231125613.67 1408212.94 2008471.23
AUD 1044036431.83 922445897.97 - -
Total 3809361329.43 3039487043.10 4009652896.62 7114437608.00
Note: It refers to RMB financial assets and financial liabilities held by subsidiaries with non RMB
currency as functional currency.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.- 160 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
1. Risk management objectives and policies - 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:
Current Year Prior Year
Item Changes in exchange rate Effect Effect on Effect Effect on
on profit shareholders' equity on profit
shareholders'
equity
All foreign currencies 5% increase against RMB -47277990.96 -47277990.96 -277619930.87 -277619930.87
All foreign currencies 5% decrease against RMB 47277990.96 47277990.96 277619930.87 277619930.87
All foreign currencies 5% increase against USD -7261247.63 -7261247.63 -7224341.41 -7224341.41
All foreign currencies 5% decrease against USD 7261247.63 7261247.63 7224341.41 7224341.41
All foreign currencies 5% increase against HKD -21082978.46 -21082978.46 23518592.02 23518592.02
All foreign currencies 5% decrease against HKD 21082978.46 21082978.46 -23518592.02 -23518592.02
All foreign currencies 5% increase against EUR (including FCFA) 13405817.10 13405817.10 11455857.12 11455857.12
All foreign currencies 5% decrease against EUR (including FCFA) -13405817.10 -13405817.10 -11455857.12 -11455857.12
All foreign currencies 5% increase against AUD 52201821.59 52201821.59 46122294.90 46122294.90
All foreign currencies 5% decrease against AUD -52201821.59 -52201821.59 -46122294.90 -46122294.90
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.- 161 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
1. Risk management objectives and policies - 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 year and shareholders'
equity are as follows:
Current Year Prior Year
Item Changes in Effect on Effect on interest rate Effect on profit shareholders' Effect on profit shareholders'
equity equity
Short-term borrowings and
long-term borrowings 1% increase -314120988.56 -314120988.56 -286274021.36 -286274021.36
Short-term borrowings and
long-term borrowings 1% decrease 314120988.56 314120988.56 286274021.36 286274021.36
1.2 Credit risk
As at 31 December 2025 the Group's maximum exposure to credit risk which may 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) bills 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". For financial instruments measured at fair value the book value reflects
its risk exposure but not the maximum risk exposure and its maximum risk exposure will change
with the change of future fair value.- 162 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
1. Risk management objectives and policies - 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 bad debts
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 31 December 2025 the Group had total current liabilities in excess of total current assets of
RMB 7384414975.47. As at 31 December 2025 the Group had available and unused line of credit
and bonds amounting to RMB 49239851263.83 among which the amount available for the Group
to withdraw and use exceeds the balance of net current liabilities by more than twelve months after
the balance sheet date. 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 Within 1 year 1 to 5 years Over 5 years Total
Short-term borrowings 19775820831.32 20352475904.75 - - 20352475904.75
Accounts payable 739900492.35 739900492.35 739900492.35
Other payables 2034923078.95 2034923078.95 2034923078.95
Non-current liabilities due
within one year 5985434723.30 7024927664.35 - - 7024927664.35
Other current liabilities 2199301417.02 2218261417.02 - - 2218261417.02
Long-term borrowings 7439956123.50 - 5655365514.96 2343604818.11 7998970333.07
Bonds payable 20709787532.29 - 20113151565.97 1636701369.86 21749852935.83
Lease liabilities 1690860832.08 - 731079098.61 2719341503.38 3450420601.99
Long-term payables 3715144055.04 - 891844488.69 4790769972.72 5682614461.41
- 163 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE
1. Assets and liabilities measured at fair value at the end of the year
Fair value of closing balanceof closing balance
Item Level 1 Level 2 Level 3 Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value - - - -
Financial assets held for trading - 7578824365.75 - 7578824365.75
Investments in other equity instruments - - 141766365.15 141766365.15
Receivables under financing - - 114680738.25 114680738.25
Other non-current financial assets - - 28768810.95 28768810.95
Total assets continuously measured
at fair value - 7578824365.75 285215914.35 7864040280.10
2. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Item Fair value of closing balance Valuation techniques Inputs
Financial assets held for trading 7578824365.75 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.
3. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 3 fair value
Item Fair value of closing balance Valuation techniques Inputs
Investments in other equity Income approach expected profit distribution
instruments 141766365.15 Net asset method discount rate and carrying amount
Receivables under financing 114680738.25 Cash flow discounting expected rate of return
Other non-current financial assets 28768810.95 Net asset method carrying amount
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 income approach and net asset
method. The fair value of debt investments is determined using the valuation method of the
discounted cash flow method.- 164 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE - continued
4. 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 bills receivable
accounts receivable other receivables non-current assets due within one year long-term
receivables short-term borrowings bills payable accounts payable other payables non-current
liabilities due within one year other current liabilities lease liabilities 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 amortised cost in the financial statements approximate their fair values.- 165 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of
Name of the Company Related party Type of the entity Place of
Proportion of voting
relationship registration Nature of business Issued share capital
ownership interests
held by the Company power held by the
(%) Company (%)
Broadford Parent Private limited company (share limited) Hong Kong Investment holding HKD 21120986262 2.21 62.96 (Note)
Note: Broadford directly holds 2.21% of the Company's equity and holds 14.83% of the Company's equity through its subsidiary China Merchants
Gangtong Development (Shenzhen) Co. Ltd. For the year ended 31 December 2024 the controlling shareholder Broadford transferred its 74.66%
shares of Honghui (Hong Kong) Co. Ltd. to CMHK and CMHK entrusted the 74.66% shares of Honghui (Hong Kong) Co. Ltd. obtained
from the above transfer to Broadford for management. After the completion of this share transfer and share custody the controlling shareholder
of the company will still be Broadford The ultimate controlling shareholder of the Company is China Merchants Group Co. Ltd..
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in Note (X) 1and Note (XI) 1.- 166 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
year 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
Qingdao Qianwan West Port United Wharf Co. Ltd. Joint venture
Qingdao Qianwan United Container Terminal Co. Ltd. (hereinafter referred to as "
Qingdao Qianwan United ") and its subsidiaries 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
Qingdao Port Dongjiakou Ore Terminal Co. Ltd. Joint venture
Euro-Asia Oceangate S.à r.l. Joint venture
GREAT HORN DEVELOPMENT COMPANY FZCO Associate
International Djibouti Industrial Parks Operation FZCo Associate
Port de Djibouti S.A. Associate
Terminal Link SAS Associate
Nanshan Group and its subsidiaries Associate
Shanggang Group and its subsidiaries Associate
Shenzhen Baohong Technology Co. Ltd. Associate
Tianjin Haitian Bonded Logistics Co. Ltd. Associate
Chu Kong River Trade Terminal Co. Ltd. Associate
Shantou International Container Terminals Limited Associate
Shenzhen Chiwan Industrial Development Co. Ltd and its subsidiaries Associate
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Associate
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Associate
Antong Holdings Associate
RED SEA WORLD S.A. Associate
Liaoning Port and its subsidiaries Associate controlled by the same ultimate controlling shareholder
Zhanjiang Sinotrans Chemical International Logistics Co. Ltd. Associate controlled by the same ultimate controlling shareholder
Lac Assal Investment Holding Company Limited Associate controlled by the same ultimate controlling shareholder
Zhanjiang Infrastructure Construction Investment Group Co. Ltd. Minority shareholders of subsidiary
Yihai Kerry Arawana Holdings Co. Ltd. Minority shareholders of subsidiary
- 167 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
China Marine Shipping Agency Guangdong Co. Ltd. Controlled by the same ultimate controlling shareholder
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate controlling shareholder
South China Sinotrans Supply Chain Management Co. Ltd. Controlled by the same ultimate controlling shareholder
EuroAsia Dockyard Enterprise and Development Limited Controlled by the same ultimate controlling shareholder
Qingdao Bonded Logistics Park Sinotrans Warehousing Logistics
Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Supply Chain Management Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Foreign Forwarding International Freight Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries 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 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
Limited Controlled by the same ultimate controlling shareholder
China Merchants Group Finance Company Limited Controlled by the same ultimate controlling shareholder
China Merchants 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 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
Guangdong Sinotrans Shipping 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
Sinotrans (Djibouti) Bonded Logistics Co. Ltd Controlled by the same ultimate controlling shareholder
CMHK Controlled by the same ultimate controlling shareholder
- 168 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Sinoway Shipping 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
Sinotrans Container Lines Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Construction Supervision Consulting Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen West Port Security Service Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Surplus Property Management Co. Ltd. Controlled by the same ultimate controlling shareholder
Hong Kong Haitong Co. Ltd. Controlled by the same ultimate controlling shareholder
Haitong Haihui (Shanghai) Technology Co. Ltd Controlled by the same ultimate controlling shareholder
Dalian Jingang United Auto International Trade Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Transportation (Hainan) Co. Ltd. Controlled by the same ultimate controlling shareholder
CIAO International Limited Controlled by the same ultimate controlling shareholder
China Merchants Logistics Group (Tianjin) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Life Insurance Company Limited Controlled by the same ultimate controlling shareholder
Ocean Offshore 2403 Limited Controlled by the same ultimate controlling shareholder
Zhangzhou Development Zone China Merchants Water Service Co.Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
Haitong (Shenzhen) Trade Co. Ltd. Controlled by the same ultimate controlling shareholder
Khor Ambado FZCo Significantly influenced by the ultimate controlling shareholder
China Merchants Bank Co. Ltd. Significantly influenced by the ultimate controlling shareholder
China Merchants (Shenzhen) Power Supply Co. Ltd. Significantly influenced by the ultimate controlling shareholder
Merchants Port City Significantly influenced by the ultimate controlling shareholder
- 169 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Related party Content of transaction procedures of Current Year Prior Year
related
transactions
Rendering of services:
Antong Holdings and its subsidiaries Service income Negotiation 183425922.18 176859159.34
COSCO Logistics (Zhanjiang) Co. Ltd. Service income Negotiation 160059105.02 225947824.45
China Ocean Shipping Agency (Zhanjiang) Co.Ltd. Service income Negotiation 65253354.03 79233370.18
Sinotrans Container Transportation (Hainan) Co.Ltd. Service income Negotiation 30360054.63 6131576.11
China Merchants International Shipping Agency
(Shenzhen) Co. Ltd. Service income Negotiation 26896356.56 21010835.23
CIAO International Limited Service income Negotiation 24410550.76 8880824.63
China Marine Shipping Agency Guangdong Co.Ltd. Service income Negotiation 21188065.75 35584126.70
Sinotrans Container Lines Co. Ltd. Service income Negotiation 19881157.88 17893748.17
Qingdao Qianwan United and its subsidiaries Service income Negotiation 17532172.80 24252170.73
Yiu Lian Dockyards (Shekou) Limited Service income Negotiation 15731288.81 11901121.11
China Ocean Shipping Agency Shenzhen Co. Ltd. Service income Negotiation 8960748.62 11097445.63
South China Sinotrans Supply Chain Management
Co. Ltd. Service income Negotiation 8706595.03 1719316.58
Sinotrans Shenzhen Qianhai Supply Chain
Management Ltd. Service income Negotiation 7735941.43 10909073.38
China Merchants International Cold Chain
(Shenzhen) Company Limited Service income Negotiation 7313064.96 7292368.68
New Land-Sea Corridor Operation (Zhanjiang) Co.Ltd. Service income Negotiation 5944398.23 4288394.23
Liaoning Port and its subsidiaries Service income Negotiation 5540080.74 5172690.67
China Merchants Investment Development
Company Limited Service income Negotiation 5487311.33 6943066.05
Shenzhen Baohong Technology Co. Ltd. Service income Negotiation 5362761.39 5383991.91
Qingdao Sinotrans Mining Technology Co. Ltd. Service income Negotiation 5241046.33 1862160.41
Shenzhen Foreign Forwarding International Freight
Co. Ltd. Service income Negotiation 4976416.56 1076981.63
Sinoway Shipping Ltd. Service income Negotiation 4513120.66 3896159.47
Qingdao Bonded Logistics Park Sinotrans
Warehousing Logistics Co. Ltd. Service income Negotiation 4260105.97 3816815.84
China Marine Shipping Agency Shenzhen Co. Ltd. Service income Negotiation 2917185.25 4232109.18
Qingdao Qianwan West Port United Wharf Co.Ltd. Service income Negotiation 2431065.71 2266358.07
Shanghai Port Group Service income Negotiation 2361696.23 2265469.82
Yantai Port Group Laizhou Port Co. Ltd. Service income Negotiation 2075471.70 2075471.68
Other related parties Service income Negotiation 21108956.42 51267351.32
Port of Newcastle and its subsidiaries Interest income Negotiation 81538614.85 74581122.68
China Merchants Group Finance Company Limited Interest income Negotiation 58333565.48 50639773.00
China Merchants Bank Co. Ltd. Interest income Negotiation 35222580.54 42250797.70
Terminal Link SAS Interest income Negotiation 12136959.77 12543736.17
Tianjin Haitian Bonded Logistics Co. Ltd. Interest income Negotiation 1020955.28 1137311.05
- 170 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Rendering and receipt of services - continued
Pricing method
and decision
Related party Content of transaction procedures of Current Year Prior Year
related
transactions
Receipt of services:
Shenzhen Chiwan Industrial Development Co. Ltd
and its subsidiaries Service expenditure Negotiation 63437864.16 60383382.87
Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries Service expenditure Negotiation 27626951.49 36049247.11
Qingdao Qianwan West Port United Wharf Co. Ltd. Service expenditure Negotiation 14027138.61 20836557.33
China Merchants Investment Development Company
Limited Service expenditure Negotiation 13278955.07 5407766.54
Shenzhen West Port Security Service Co. Ltd. Service expenditure Negotiation 13262603.30 12075631.88
COSCO Logistics (Zhanjiang) Co. Ltd. Service expenditure Negotiation 9776026.07 3833081.95
International Djibouti Industrial Parks Operation
FZCo Service expenditure Negotiation 7017008.60 10914744.17
Yiu Lian Dockyards Limited Service expenditure Negotiation 6972981.32 7591973.82
China Merchants-Logistics Shenzhen Co. Ltd. Service expenditure Negotiation 5864244.69 2342750.95
China Merchants (Shenzhen) Power Supply Co. Ltd. Service expenditure Negotiation 5405707.68 8934659.73
China Merchants Zhangzhou Development Zone
Power Supply Co. Ltd. Service expenditure Negotiation 4773226.73 5339186.66
China Merchants Property Management (Shenzhen)
Co. Ltd. Service expenditure Negotiation 4453957.21 2668909.49
Shenzhen Merchants to Home Technology Co. Ltd. Service expenditure Negotiation 4687477.54 2380710.29
Liaoning Port and its subsidiaries Service expenditure Negotiation 4135993.38 11984893.16
China Merchants Surplus Property Management Co.Ltd. Service expenditure Negotiation 3425914.92 1349520.67
China Merchants Shenzhen Ro-Ro Shipping Co. Ltd. Service expenditure Negotiation 3115797.45 3400014.78
Sinotrans (Djibouti) Bonded Logistics Co. Ltd Service expenditure Negotiation 2760536.83 647189.51
China Merchants Life Insurance Company Limited Service expenditure Negotiation 2620060.12 -
Guangdong Sinotrans Shipping Co. Ltd Service expenditure Negotiation 2539165.13 1017209.17
China Merchant Food (China) Co. Ltd. Service expenditure Negotiation 2346484.64 2650674.80
Zhangzhou Development Zone China Merchants
Water Service Co. Ltd. Service expenditure Negotiation 2289168.30 -
China Merchants Bank Co. Ltd. Service expenditure Negotiation 2223229.30 3728413.83
Haitong Haihui (Shanghai) Technology Co. Ltd Service expenditure Negotiation 2135015.05 296918.61
Other related parties Service expenditure Negotiation 24181425.24 69599130.06
China Merchants Bank Co. Ltd. Purchase of structured deposits Negotiation 12210000000.00 7260000000.00
China Merchants Bank Co. Ltd. Interest expense Negotiation 60658343.65 72154609.27
China Merchants Group Finance Company Limited Interest expense Negotiation 32877199.14 36451832.93
Ocean Offshore 2403 Limited Interest expense Negotiation 6747197.02 -
China Merchants Finance Lease (Tianjin) Co. Ltd. Interest expense Negotiation 3536983.75 3483279.42
China Merchants Finance Lease (Shanghai) Co. Ltd. Interest expense Negotiation - 2356009.46
- 171 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 decision Lease income Lease income
Name of the lessee Type of leased assets procedures of recognised in the recognised in the
related current year prior year
transactions
Qingdao Qianwan West Port United Wharf Co. Ltd. Port and terminal facilities Negotiation 17168242.49 14351518.19
Qingdao Bonded Logistics Park Sinotrans
Warehousing Logistics Co. Ltd. Port and terminal facilities Negotiation 5088364.64 5375787.11
Qingdao Sinotrans Supply Chain Management
Co. Ltd. Buildings and structures Negotiation 4797960.58 4811101.79
China Traffic Import and Export Co. Ltd. Buildings and structures Negotiation 3869907.41 5179670.76
Qingdao Sinotrans Mining Technology Co. Ltd. Port and terminal facilities Negotiation 3562917.83 4750557.12
Qingdao Qianwan United and its subsidiaries Buildings and structures Negotiation 3499481.46 3508252.92
Qingdao Wutong Century Supply Chain Co. Ltd. Buildings and structures Negotiation 2565010.92 2713039.19
Qingdao Sinotrans Logistics Co. Ltd. Port and terminal facilities Negotiation 2477691.42 2477668.56
Haitong (Shenzhen) Trade Co. Ltd. Buildings and structures Negotiation 2462532.60 2811192.84
China Merchants Securities Co. Ltd Buildings and structures Negotiation 2458235.85 2460986.37
CM Port Chuangrong (Shenzhen) Technology
Co. Ltd. Port and terminal facilities Negotiation 2321467.98 2577426.36
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 2052603.46 2149478.11
Other related parties Buildings and structures Port and terminal facilities Negotiation 9344668.62 10106892.93
Total — — — — 61669085.26 63273572.25
- 172 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
expenses on leases of low-value are not included in the Interest expenses on lease
Name of the lessor Type of leased assets assets that are accounted for using measurement of lease Rental paid liabilities Addition to right-of-use assets
simplified approach liabilities
Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
China Merchants Shekou
Industrial Zone Holdings Port and terminal facilities Land use right 306224.00 - - - 44066799.39 33671185.02 1587229.84 2627207.77 - 6841334.09 Co. Ltd
EuroAsia Dockyard
Enterprise and Port and terminal facilities - - - 15072619.95 16267717.80 383677.34 452003.87 - -
Development Limited
Shenzhen Qianhai Shekou
Free Trade Investment Land use right 14277045.89 7718862.46 - - 7780990.03 8413560.00 - - - -
Development Co. Ltd
Nanshan Group and its Buildings and structures
subsidiaries Port and terminal facilities 122873.40 458524.82 - - 4548686.64 72495152.94 9439152.47 1549113.49 373165903.84 - Land use right Others
China Merchants Finance
Lease (Tianjin) Co. Ltd. Port and terminal facilities - - - - 2491841.67 25037299.24 3536983.75 3627216.64 - -
Machinery and equipment
Others Buildings and structures Port and terminal facilities 2142297.24 2213002.01 - - 5138359.72 90570525.17 153444.84 2707383.66 5583342.98
Land use right Others
Total 16848440.53 10390389.29 - - 79099297.40 246455440.17 15100488.24 10962925.43 373165903.84 12424677.07
- 173 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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:
Secured party Credit line Guaranteed Commencement date Maturity The guarantee has amount date been completed or not
For the year of 2025
Terminal Link SAS (Note 1) 57247051.41 57247051.41 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 202429440.00 158095856.92 24 May 2019 2032 No
Terminal Link SAS (Note 2) 231950400.00 113655696.00 25 January 2023 2030 No
Total 491626891.41 328998604.33 — — — — — —
For the year of 2024
Terminal Link SAS (Note 1) 58245642.59 58245642.59 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 207025920.00 167923750.92 24 May 2019 2032 No
Terminal Link SAS (Note 2) 237217200.00 116236428.00 25 January 2023 2030 No
Total 502488762.59 342405821.51 — — — — — —
Note 1: In previous years CMA CGM S.A. another shareholder of Terminal Link SAS an
associate of the Group provided 100% guarantee for the bank loan financing and other
liabilities of Terminal Link SAS. The Group makes a commitment to CMA CGM S.A. to
provide guarantee for the bank loan financing and other liabilities to Terminal Link SAS
in accordance with the 49% equity ratio of Terminal Link SAS held by the Group. The
actual guaranteed amount is RMB 57247051.41 as at 31 December 2025. If any
guarantee liability occurs the Group will compensate CMA CGM S.A..Note 2: The Group and CMA CGM S.A. provide guarantee for bank loan financing and other
liabilities of the associated company Terminal Link SAS according to their shareholding
ratio. The actual guarantee amount on 31 December 2025 is RMB 113655696.00.Note 3: Khor Ambado FZCo is a related party of the ultimate controlling shareholder of the Group.The Group and other shareholders of Khor Ambado FZCo provide guarantees for its bank
loan financing and other liabilities in proportion to their shareholding. The actual
guarantee amount on 31 December 2025 is RMB 158095856.92.Note 4: For the related guarantees provided by the Group please refer to Note (VIII) 39 for the
details of credit impairment losses for this year.The Group as the guaranteed party:
Guarantor Credit line Guaranteed Commencement
The guarantee
amount date Maturity date has been completed or not
For the year of 2025
SINOTRANS SOUTH CHINA
COMPANY LIMITED (Note 5) 1079100000.00 409805329.57 26 June 2019 1 July 2034 No
For the year of 2024
SINOTRANS SOUTH CHINA
COMPANY LIMITED (Note 5) 1079100000.00 438097430.82 26 June 2019 1 July 2034 No
Note 5: Refer to Note (VIII) 34.- 174 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
2025
Borrowings
China Merchants Bank Co. Ltd. 1672217483.07 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 786838830.68 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 276992067.79 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 421567628.72 Actual borrowing date Agreed repayment date Long-term borrowings
Ocean Offshore 2403 Limited 135714720.00 Actual borrowing date Agreed repayment date Long-term payables
Yihai Kerry Arawana Holdings Co. Ltd. 36658499.40 Actual borrowing date Agreed repayment date Long-term payables
Total 3329989229.66 — — — — — —
2024
Borrowings
China Merchants Bank Co. Ltd. 1298369781.25 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 1336953012.50 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 268456381.95 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 59158045.05 Actual borrowing date Agreed repayment date Long-term borrowings
Total 2962937220.75 — — — — — —
Note 1: As at 31 December 2025 the total credit lines of the Group from the related parties China
Merchants Bank Co. Ltd. and China Merchants Group Finance Co. Ltd. are RMB
5208300000.00 and RMB 10000000000.00 respectively.
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision procedures of Current Year Prior Year
related transactions
Sinotrans Container Lines Co. Ltd. Transfer of equity investment Negotiation 124800000.00 -
Zhanjiang Sinotrans Chemical Contribution of land use
International Logistics Co. Ltd. right Valuation 52122355.00 -
Zhanjiang Sinotrans Chemical
International Logistics Co. Ltd. Transfer of land use right Valuation 43972744.00 -
Shantou International Container Reduce of registered
Terminals Limited capital Registered capital - 120000000.00
RED SEA WORLD S.A. Equity investment Fair value - 160855674.82
Hoi Tung (Shanghai) Company Limited Fixed assets Negotiation 4373097.35 2876106.19
Dalian Jingang United Auto
International Trade Co. Ltd. Fixed assets Negotiation 1526353.98 2454981.76
Dalian Jingang United Auto
International Trade Co. Ltd. Construction in progress Negotiation 6368176.96 -
Dalian Jingang United Auto
International Trade Co. Ltd. and its Construction in progress Negotiation 7806951.99 1651790.19
subsidiary
Ocean Offshore 2403 Limited Construction in progress Negotiation 3437294.42 -
Hong Kong Haitong Co. Ltd. Construction in progress Negotiation 1572861.85 15893828.70
Other related parties Construction in progress Negotiation 401512.05 3518918.32
Total — — — — 246381347.60 307251299.98
- 175 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(6) Compensation for key management personnel
Item Current Year Prior Year
Compensation for key management personnel 19426155.25 17310521.40
6. Amounts due from/to related parties that have not settled
(1) Amounts due from related parties
Item Related party Closing Balance Opening Balance
China Merchants Bank Co. Ltd. 1859504299.96 3404002420.98
Cash and bank balances China Merchants Group Finance Company Limited 4733188415.27 4745991554.35
Total 6592692715.23 8149993975.33
COSCO Logistics (Zhanjiang) Co. Ltd. 20909052.72 12222891.71
Antong Holdings and its subsidiaries 14331644.37 9901450.77
Sinotrans Container Transportation (Hainan) Co. Ltd. 5490141.47 2350603.78
Sinotrans (HK) Shipping Limited 4192924.81 1188868.03
Sinotrans Container Lines Co. Ltd. 2759474.70 4496476.26
Liaoning Port and its subsidiaries 2270387.91 2358141.87
GREAT HORN DEVELOPMENT COMPANY FZCO 2152921.44 2201806.92
Accounts receivable China Ocean Shipping Agency Shenzhen Co. Ltd. 2038931.07 3778789.25
Yiu Lian Dockyards (Shekou) Limited 1409897.20 355728.00
Sinotrans Central China Co. Ltd. 1247021.25 27768.35
China Merchants Investment Development Company Limited 1220166.04 3439600.00
Nanshan Group and its subsidiaries 1288469.27 337492.97
China Merchants Logistics Group (Tianjin) Co. Ltd. - 3109502.50
Other related parties 9712084.91 13888769.02
Total 69023117.16 59657889.43
- 176 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
Shanggang Group and its subsidiaries 326565642.25 326565642.25
Nanshan Group and its subsidiaries 111042000.00 148056000.00
Qingdao Port Dongjiakou Ore Terminal Co. Ltd. 68175602.27 -
Merchants Port City 35771044.77 38809044.77
Dividends receivable Euro-Asia Oceangate S.à r.l. 28485290.83 23881469.17 Port of Newcastle and its subsidiaries 7264990.21 -
China Ocean Shipping Agency Shenzhen Co. Ltd. - 10575000.00
COSCO Logistics (Zhanjiang) Co. Ltd. - 5649001.16
Qingdao Wutong Century Supply Chain Co. Ltd. - 1190109.26
Total 577304570.33 554726266.61
Chu Kong River Trade Terminal Co. Ltd. 32841079.20 37374974.40
Port de Djibouti S.A. 24776520.00 -
Shenzhen Qianhai Shekou Free Trade Investment Development
Co. Ltd. 7222330.00 6310000.00
Ocean Offshore 2403 Limited 7028800.00 -
China Merchants Investment Development Company Limited 5710073.55 3837775.52
Other receivables Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries 3994120.74 31299652.92 International Djibouti Industrial Parks Operation FZCo 1891143.64 293452.73
EuroAsia Dockyard Enterprise and Development Limited 1526824.77 1565400.24
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 1166408.40 1166408.40
CMHK 1059673.20 2300860.48
Other related parties 2668491.95 3954388.97
Total 89885465.45 88102913.66
China Merchants Life Insurance Company Limited 3126654.88 -
Prepayments Other related parties 1095819.45 306332.45
Total 4222474.33 306332.45
Non-current assets due Tianjin Haitian Bonded Logistics Co. Ltd. - 34300000.00
within one year China Merchants Finance Lease (Tianjin) Co. Ltd. - 733025.11 Total - 35033025.11
Port of Newcastle and its subsidiaries 1032950257.96 920674796.27
Terminal Link SAS 239062457.32 215013954.38
Long-term receivables Tianjin Haitian Bonded Logistics Co. Ltd. 34300000.00 -
Other related parties 539722.23 1058295.37
Total 1306852437.51 1136747046.02
- 177 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
China Merchants Bank Co. Ltd. 1093426099.97 1298369781.25
Short-term borrowings China Merchants Group Finance Company Limited 191124984.44 180132916.65
Total 1284551084.41 1478502697.90
Antong Holdings and its subsidiaries 17869057.61 17869057.61
Nanshan Group and its subsidiaries 9459413.49 7793894.49
China Merchants (Shenzhen) Power Supply Co. Ltd. 7849882.40 7491614.83
Shenzhen Chiwan Industrial Development Co. Ltd and its
subsidiaries 5883063.90 5886136.82
COSCO Logistics (Zhanjiang) Co. Ltd. 3959010.47 111854.40
Liaoning Port and its subsidiaries 2956796.42 5020956.61
Accounts payable Yiu Lian Dockyards Limited 2304412.28 1831651.56
EuroAsia Dockyard Enterprise and Development Limited 2275716.26 1562589.15
International Djibouti Industrial Parks Operation FZCo 2013472.16 -
Qingdao Qianwan West Port United Wharf Co. Ltd. 1709239.56 2302401.72
China Merchants Investment Development Company Limited 1603085.74 1916766.44
Shenzhen West Port Security Service Co. Ltd. 1227570.98 991318.88
Other related parties 11585506.37 27129981.41
Total 70696227.64 79908223.92
Advance payments
received Other related parties 641753.44 1020627.96
CIAO International Limited 1500000.00 -
Contract liabilities Other related parties 1909613.77 990669.32
Total 3409613.77 990669.32
China Merchants Zhangzhou Development Zone Co. Ltd. 105526928.23 79792513.04
Yiu Lian Dockyards Limited 22924685.89 -
Dividends payable Zhanjiang Infrastructure Construction Investment Group Co.Ltd. - 52542231.24
Total 128451614.12 132334744.28
CMHK 309403432.24 3518.95
Lac Assal Investment Holding Company Limited 79952643.76 81768095.74
Antong Holdings and its subsidiaries 6340341.84 4743266.37
Nanshan Group and its subsidiaries 4667248.90 1487524.53
Liaoning Port and its subsidiaries 4050509.93 1752579.27
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 3465204.79 6930409.58
Other payables CIAO International Limited 2999920.00 2999920.00
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1220440.54 1744765.30
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 156779.63 2975713.65
China Merchants Investment Development Company Limited - 3559625.15
Other related parties 11382893.37 14317754.41
To tal 423639415.00 122283172.95
- 178 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 Closing Balance Opening Balance
China Merchants Investment Development Company Limited 12922678.94 -
Liaoning Port and its subsidiaries 755883.15 -
Other current liabilities China Merchants Bank Co. Ltd. 596666.67
Other related parties 943076.91 -
Total 15.218.305.67 -
China Merchants Group Finance Company Limited 307767555.63 153940240.06
China Merchants Bank Co. Ltd. 251962126.24 115025994.45
Nanshan Group and its subsidiaries 126190230.53 -
Non-current liabilities China Merchants Shekou Industrial Zone Holdings Co. Ltd. 32080134.08 37080955.45
due within one year Ocean Offshore 2403 Limited 28115200.00 - China Merchants Finance Lease (Tianjin) Co. Ltd. - 40241960.67
EuroAsia Dockyard Enterprise and Development Limited - 14776413.72
Other related parties 1581487.09 2585085.02
Total 747696733.57 363650649.37
China Merchants Bank Co. Ltd. 968696138.04 1316000000.00
Long-term borrowings China Merchants Group Finance Company Limited 725208087.03 658012389.53
Total 1693904225.07 1974012389.53
Nanshan Group and its subsidiaries 253660100.77 -
China Merchants International Cold Chain (Shenzhen)
Lease liabilities Company Limited 276491.76 1182801.92
China Merchants Shekou Industrial Zone Holdings Co. Ltd. - 32067795.24
Total 253936592.53 33250597.16
China Merchants Finance Lease (Tianjin) Co. Ltd. 109846754.96 31964366.45
Long-term payables Ocean Offshore 2403 Limited 99961134.57 - Yihai Kerry Arawana Holdings Co. Ltd. 36658499.40 -
Total 246466388.93 31964366.45
- 179 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(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 year
targets year year year
granted Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - 351400.00 1142050.00 - - 13500.00 43875.00
Outstanding stock option or other equity instruments at the end of current year
Type of targets granted Outstanding stock option at the end of current year Range of exercise prices Remaining term of contract
Management RMB 12.51 to RMB 14.76 13 months
- 180 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments
The method used to determine the fair value of equity The cost of granted stock options was estimated using the
instruments at the grant date Black Scholes Model.At each balance sheet date in the vesting period the best
The basis for determining the number of exercisable equity estimate was made and the estimated number of exercisable
instruments equity instruments was modified according to the latest changes in the number of employees who can exercise the
rights and other subsequent information.Reasons for the significant difference between the estimates
of the current year and the estimates of prior year Nothing
The aggregate amount of equity-settled share-based payments
that is 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
17198000 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
530000 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.- 181 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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. 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 16 January 2024. Company uniformly adjusted the exercise
price from RMB 16.08 per share to 15.50 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 13.83 per share to 13.25 per share on 31 August 2024. The Company
uniformly adjusted the exercise price from RMB 15.50 per share to 14.76 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 13.25 per share to 12.51 per share
on 31 August 2025.As at 31 December 2025 as 1 of the incentive targets for the first batch of stock option granted
under the stock option incentive plan (phase I) have lost the qualification to participate in the
company's incentive plan the board of directors of the Company decided to cancel in total of 13500
shares of stock option granted but not yet exercised by such persons.As at the date on which the financial statements are issued 192 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) 187 incentive targets who met the designated grades in the performance
assessment holding 100% of the stock option (totalling 3408900 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 designated grades in
the performance assessment holding 80% of the stock option (totalling 60480 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 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 265000 shares of exercisable stock option for the second vesting
period of the stock option (reserved portion) under the stock option incentive plan (phase I).- 182 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
3. Share-based payment expenses in the current year
Type of targets granted Equity-settled share-based payment expenses
Management -
(XVII) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item Closing Balance Opening Balance
Commitments that have been entered into but have not
been recognised in the financial statements
- Commitment to make contributions to the investees 2469326880.09 68882165.47
- Commitment to acquire and construct long-term assets 3381159873.68 2891660439.17
Total 5850486753.77 2960542604.64
2. Contingencies
Item Closing Balance Opening Balance
Contingent liabilities brought by external litigations (Note 1) 963662048.81 804570710.82
Guarantee for borrowings of related parties (Note 2) 222911237.19 342405821.51
Total 1186573286.00 1146976532.33
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 at as the year end. The amount involved in the pending
litigation is RMB 881304260.01. At the same time for the pending litigation existing
before the Group's acquisition of TCP the counter compensation agreement in favour of
the Group will be executed by the original TCP shareholders who sell shares. According
to the counter compensation agreement the original TCP shareholders need to compensate
the Group for contingent liabilities and the amount of compensation should not exceed
the predetermined amount and the specified period. According to the latest estimates of
the management of the Company the above pending litigation is unlikely to lead to the
outflow of economic benefits from the enterprise. Therefore the Group has not recognised
the estimated liabilities for the contingent liabilities caused by the above pending litigation.- 183 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies - continued
Note 2: As at 31 December 2025 the guarantees provided by the Group for related parties are
detailed in Note (XV) 5.Except for the above-mentioned contingencies as at 31 December 2025 the Group had no other
major guarantees and other contingencies that need to be explained.(XVIII) EVENTS AFTER THE BALANCE SHEET
According to the profit distribution plan for the year 2025 passed at the 6th meeting of the 11th
Board held by the Company on 31 March 2026 the Company distributed cash dividends of RMB
7.99 (including tax) for every ten shares based on 2481897185 shares held in the repurchase
special account deducted from the total share capital as of 24 March 2025 totaling RMB
1983035850.82. The above-mentioned dividends distribution plan is yet to be reviewed and
approved by the shareholders' meeting.(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.- 184 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 2909072284.64
representing 16.87% (2024: 14.25%) of the Group's operating income for 2025.- 185 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 2025 is as follows:
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics Others Unallocated amount Total
Pearl River Delta Yangtze River Other locations Sub-total operation Delta Bohai Rim Others
Operating income 6846460971.70 624606.56 28724541.44 3102625214.92 6448810395.23 16427245729.85 644652943.44 174483854.56 - 17246382527.85
Operating costs 3759872234.74 8518229.88 14775255.63 2602356247.42 2713413778.81 9098935746.48 367307647.16 189943854.64 - 9656187248.28
Segment operating profit (“-” for
losses) 3086588736.96 -7893623.32 13949285.81 500268967.50 3735396616.42 7328309983.37 277345296.28 -15460000.08 - 7590195279.57
Taxes and surcharges 38873568.46 1075744.28 1089548.48 53520036.21 216311120.77 310870018.20 26387183.19 24342004.60 5474194.67 367073400.66
Administrative expense 390397339.80 4144076.00 10548678.67 269300696.08 345726287.70 1020117078.25 55153639.32 1124950.94 456995623.88 1533391292.39
R&D expenses 153732534.35 - - 24017739.17 - 177750273.52 - - - 177750273.52
Financial expenses 55546113.57 -6720778.10 -1179741.20 49383507.07 77987521.81 175016623.15 28646078.40 3620138.27 1297558072.27 1504840912.09
Other income 128492668.02 1225456.48 46094.81 30416158.41 - 160180377.72 12008552.31 237823.39 - 172426753.42
Investment income (“-” for losses) 88917035.64 4995379562.85 203431537.60 26182460.37 730228943.85 6044139540.31 166126606.46 188011112.87 23242868.11 6421520127.75
Including: Investment income from
associates and joint ventures 34016486.64 4995379562.85 203431537.60 17532425.97 730228943.85 5980588956.91 166126606.46 188011112.87 - 6334726676.24
Gains from changes in fair value
(“-” for losses) 40183500.98 - - 223064.44 - 40406565.42 - - 1967561.64 42374127.06
Losses on
credit impairment(“-” for losses) -502737.37 - - -170485159.21 -12559983.11 -183547879.69 -107068741.24 - - -290616620.93
Impairment losses (“-” for losses) 1610.64 - - - -4329769.64 -4328159.00 -5744701.74 - - -10072860.74
Gains from asset disposals (“-” for
losses) 710056.40 - - 6528344.28 615155.94 7853556.62 -22302.10 - -439495.46 7391759.06
Operating profit (“-” for losses) 2705841315.09 4990212353.83 206968432.27 -3088142.74 3809326033.18 11709259991.63 232457809.06 143701842.37 -1735256956.53 10350162686.53
- 186 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 2025 is as follows: - continued
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics Others Unallocated amount Total
Pearl River Delta Yangtze River Delta Bohai Rim Others
Other locations Sub-total operation
Non-operating income 19256372.65 - 501000.72 6305235.57 48982118.65 75044727.59 2335316.32 1234449.91 5305155.61 83919649.43
Non-operating expenses 8469920.94 - 318381.18 10079391.06 25144753.70 44012446.88 39632.50 324.74 13742994.40 57795398.52
Total profit (“-” for losses) 2716627766.80 4990212353.83 207151051.81 -6862298.23 3833163398.13 11740292272.34 234753492.88 144935967.54 -1743694795.32 10376286937.44
Income tax expenses 511549622.08 171299444.75 23315315.43 19061016.86 686607741.29 1411833140.41 33376875.90 24961456.88 123541.76 1470295014.95
Net profit (“-” for losses) 2205078144.72 4818912909.08 183835736.38 -25923315.09 3146555656.84 10328459131.93 201376616.98 119974510.66 -1743818337.08 8905991922.49
Segment assets 27957368640.78 64378877385.23 9053291782.90 26858430038.04 42154538054.25 170402505901.20 4625899703.24 16104573524.32 13881718365.92 205014697494.68
Total assets in the financial statements 205014697494.68
Segment liabilities 7988185415.44 1528571908.42 153535028.20 6949241867.46 6489715269.73 23109249489.25 502211469.97 405870077.64 49696318258.97 73713649295.83
Total liabilities in the financial statements 73713649295.83
Supplementary information:
Depreciation and amortisation 1130965853.52 6156013.81 958604.59 867941806.96 1028266510.30 3034288789.18 94867041.17 154302489.89 33045575.42 3316503895.66
Interest income 37407017.36 183144.94 205273.19 12285000.71 164893257.45 214973693.65 1632212.09 951685.61 161963235.50 379520826.85
Interest expense 80502888.97 7531845.28 - 61436579.58 316813564.59 466284878.42 25465633.19 7434952.02 1410822062.18 1910007525.81
Investment income from
long-term equity investments 34016486.64 4995379562.85 203431537.60 17532425.97 730228943.85 5980588956.91 166126606.46 188011112.87 - 6334726676.24
under equity method
Long-term equity investments
under equity method 1765517195.58 62180649623.04 8921065067.61 1690443296.44 12737031194.98 87294706377.65 1762892422.67 14015501264.55 - 103073100064.87
Non-current assets other than
long-term equity investments 19301776769.54 386871093.56 13374075.21 20184101596.42 25220591656.05 65106715190.78 2555373093.56 3174056395.60 626726319.92 71462870999.86
- 187 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 2024 is as follows:
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics Others Unallocated Total
Pearl River Delta Yangtze River Bohai Rim Others Other locations Sub-total
operation amount
Delta
Operating income 6431616103.24 1244488.00 35429691.48 3443761318.55 5450560759.22 15362612360.49 581135985.94 187029681.81 - 16130778028.24
Operating costs 3643704953.94 7879940.23 21554240.31 2549974747.42 2427214953.44 8650328835.34 321819100.85 223868756.16 - 9196016692.35
Segment operating profit (“-” for
losses) 2787911149.30 -6635452.23 13875451.17 893786571.13 3023345805.78 6712283525.15 259316885.09 -36839074.35 - 6934761335.89
Taxes and surcharges 36099143.56 1108732.05 1142301.89 53246818.52 188035503.59 279632499.61 26824541.00 24354678.99 1522043.55 332333763.15
Administrative expense 441642697.27 3306900.14 13422831.03 528149064.56 300139650.63 1286661143.63 75409818.29 1125717.14 458347603.12 1821544282.18
R&D expenses 175109423.61 - - 26645642.75 - 201755066.36 - - - 201755066.36
Financial expenses 37387836.75 7762806.23 -299175.51 88123829.70 254737267.23 387712564.40 -4790361.01 14653358.03 1459790075.45 1857365636.87
Other income 143256859.08 1225442.53 26641.94 29233233.29 - 173742176.84 11444551.72 223574.73 - 185410303.29
Investment income (“-” for
losses) 132466129.59 5278531361.17 344928827.95 449467610.73 592968393.40 6798362322.84 99910880.05 -374726770.23 23450098.84 6546996531.50
Including: Investment income
from associates and joint 54377294.47 5315828512.05 308915198.02 443732105.49 592968393.40 6715821503.43 99910880.05 -374726770.23 - 6441005613.25
ventures
Gains from changes in fair value
(“-” for losses) 36202805.35 - 348884984.49 1166382.24 - 386254172.08 - 2172987.58 1805205.49 390232365.15
Reversal of/(Losses on) credit
impairment -2173136.38 - - -96866918.68 309219962.77 210179907.71 63614401.37 -800000.00 - 272994309.08
Impairment losses (“-” for
losses) -767306.24 - - - - -767306.24 - -8113482.64 - -8880788.88
Gains from asset disposals (“-”
for losses) 2100085.81 - -108483.27 35115963.87 -3054695.65 34052870.76 53074.13 - -43549.14 34062395.75
Operating profit (“-” for losses) 2408757485.32 5260942913.05 693341464.87 615737487.05 3179567044.85 12158346395.14 336895794.08 -458216519.07 -1894447966.93 10142577703.22
- 188 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 2024 is as follows: - continued
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics operation Others
Unallocated
Yangtze River amount
Total
Pearl River Delta Delta Bohai Rim Others
Other locations Sub-total
Non-operating income 14854852.86 56603.78 494224.01 12062080.43 25247186.94 52714948.02 123746.37 958639.58 5221321.35 59018655.32
Non-operating expenses 7303147.15 8273.40 - 11096299.32 41686171.97 60093891.84 18742.91 12929.40 10126537.58 70252101.73
Total profit (“-” for losses) 2416309191.03 5260991243.43 693835688.88 616703268.16 3163128059.82 12150967451.32 337000797.54 -457270808.89 -1899353183.16 10131344256.81
Income tax expenses 365999294.40 201089604.04 93283248.35 58529808.00 498880170.41 1217782125.20 40781729.30 -5407160.82 -318746.78 1252837946.90
Net profit (“-” for losses) 2050309896.63 5059901639.39 600552440.53 558173460.16 2664247889.41 10933185326.12 296219068.24 -451863648.07 -1899034436.38 8878506309.91
Segment assets 26481857320.70 61773227599.24 9089898859.40 27215990680.75 41379476385.11 165940450845.20 4728601803.38 17454804395.36 13393994837.51 201517851881.45
Total assets in the financial statements 201517851881.45
Segment liabilities 7005450645.63 1432965514.91 155616589.06 6879752045.97 6573177512.48 22046962308.05 520327840.86 478408300.92 50313714657.37 73359413107.20
Total liabilities in the financial statements 73359413107.20
Supplementary information:
Depreciation and amortisation 1101974370.36 5227042.20 909172.37 880034559.48 953267886.64 2941413031.05 94938612.00 194188349.73 36732644.12 3267272636.90
Interest income 44376828.93 528801.58 435955.95 15351650.68 191275463.28 251968700.42 4716104.32 1208189.24 219537326.43 477430320.41
Interest expense 84380450.90 8265931.82 - 103358149.34 292588128.85 488592660.91 7626009.14 12338219.71 1706662228.76 2215219118.52
Investment income from
long-term equity investments 54377294.47 5315828512.05 308915198.02 443732105.49 592968393.40 6715821503.43 99910880.05 -374726770.23 - 6441005613.25
under equity method
Long-term equity investments
under equity method 1800864231.47 59463859786.26 9035598922.91 1625511203.46 12422348899.54 84348183043.64 1783293756.67 13886553094.65 - 100018029894.96
Non-current assets other than
long-term equity investments 19044348224.36 393057726.70 14332679.80 20423093188.66 25146123941.56 65020955761.08 2664151796.28 3292646256.39 649834176.05 71627587989.80
- 189 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
6214186018.61 accounting for 36.03% 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 Closing Balance Opening Balance
Dividends receivable 148813646.87 965690879.89
Other receivables 1027288388.73 1447751781.79
Total 1176102035.60 2413442661.68
- 190 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Dividends receivable listed by aging
Impaired or not
Investee Closing Balance Opening Balance Reason for and the outstanding determination
basis
Dividend receivable aged less than 1 year 707086.83 816439596.16 — — — —
Including: Port Development (Hong Kong) Co. Ltd. - 805654800.00 — — No
Chiwan Shipping (Hong Kong) Limited 707086.83 209796.16 — — No
China Ocean Shipping Agency Shenzhen
Co. Ltd. - 10575000.00 — — No
Dividend receivable aged more than 1 year 148106560.04 149251283.73 — — — —
Relevant procedures
are being handled
Including: Wharf Holdings Hong Kong 147680363.88 147680363.88 and past dividends No
are being paid in
succession
Relevant procedures
are being handled
Chiwan Shipping (Hong Kong) Limited 209796.16 1354519.85 and past dividends No
are being paid in
succession
Others 216400.00 216400.00 Lack of funds No
Sub-total 148813646.87 965690879.89 — — — —
Less: Provision for bad debts - - — — — —
Total 148813646.87 965690879.89 — — — —
- 191 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
Closing Balance Opening Balance
Item Book value Proportion Provision for Proportion Provision for (%) bad debts Book value (%) bad debts
Within 1 year
(including 1 year) 1023107397.74 99.56 - 1447405298.82 99.95 -
1 to 2 years
(including 2 years) 3852675.52 0.37 - 18167.50 - -
2 to 3 years
(including 3 years) - - - - - -
More than 3 years 711772.07 0.07 383456.60 711772.07 0.05 383456.60
Total 1027671845.33 100.00 383456.60 1448135238.39 100.00 383456.60
(2) Disclosure of other receivables by nature
Item Closing Balance Opening Balance
Amounts due from related parties 1016519073.17 1438029807.71
Advance payments 8755449.49 5779708.72
Others 2397322.67 4325721.96
Sub-total 1027671845.33 1448135238.39
Less: Provision for bad debts 383456.60 383456.60
Total 1027288388.73 1447751781.79
- 192 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
(3) Disclose by bad debt provision method
Closing Balance Opening Balance
Credit Book value Provision for bad debts Carrying Book value Provision for bad debts rating Carrying
Reason for
Amount Proportion Amount Proportion amount
provision
(%) (%) Amount
Proportion
(%) Amount
Proportion amount
(%)
A 1027288388.73 99.96 - - 1027288388.73 1447751781.79 99.97 - - 1447751781.79 — —
B - - - - - - - - - - — —
C - - - - - - - - - - — —
D 383456.60 0.04 383456.60 100.00 - 383456.60 0.03 383456.60 100.00 - Not expected to be recovered
Total 1027671845.33 100.00 383456.60 0.04 1027288388.73 1448135238.39 100.00 383456.60 0.03 1447751781.79 — —
- 193 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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) Movements of provisions for bad and doubtful debts
Stage 1 Stage 2 Stage 3
Item 12-month ECL Lifetime ECL Lifetime ECL Total (not credit-impaired) (credit-impaired)
As at 1 January 2025 - - 383456.60 383456.60
Balance of other receivables as at 1 January 2025
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
As at 31 December 2025 - - 383456.60 383456.60
(5) Details of bad debt provision
Changes for the year
Opening Effect of Category Charge-off Closing Balance Provision Recovery or changes in Other reversal the scope of or write- Balance
consolidation off
changes
Provision for bad debts
assessed on an 383456.60 - - - - - 383456.60
individual basis
Provision for bad debts
assessed on a portfolio - - - - - - -
basis
Total 383456.60 - - - - - 383456.60
(6) The Company has no recovery or reversal of significant provision for bad debts in the
current year.- 194 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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
(7) The Company has no other receivables written off during the year.
(8) The top five balances of other receivables at the end of the year classified by debtor
Proportion to Provision for credit
Name of entity Book value Aging total other impairment at the Nature
receivables (%) end of the year
Wharf Holdings Hong
Kong 722029073.17
Within 1 year
(including 1 year) 70.26 - Loan to related parties
Dongguan Port Affairs 283298800.00 Within 1 year (including 1 year) 27.57 - Loan to related parties
China Merchants Within 1 year
Investment Development 5710073.55 (including 1 year) 0.56 - Advance payment for
Company Limited 1-2 years transactions
Shekou Container Within 1 year
Terminal Co. Ltd. 3227148.00 (including 1 year) 0.31 - Loan to related parties
Chiwan Container 1792860.00 Within 1 year Terminal Co.Ltd (including 1 year) 0.17 - Loan to related parties
Total 1016057954.72 — — 98.87 - — —
- 195 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(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 year Provision for
Investee Investment cost Opening Balance Investment income Other impairment Increase Decrease under equity comprehensive Other equity Cash dividends or Provision for Closing Balance
method income movements profit declared impairment
Others at the closing
balance
I. Subsidiaries
Shenzhen Chiwan Port Development
Co. Ltd. (Note 1) 206283811.09 206283811.09 392406780.85 - - - - - - - 598690591.94 -
Zhanjiang Port 3381825528.52 3381825528.52 - - -- -- -- -- -- -- 3381825528.52 -
Chiwan Container Terminal Co. Ltd. 421023199.85 421023199.85 - - -- - -- -- -- - 421023199.85 -
Sanya Merchants Port Development
Co. Ltd. 2040000.00 2040000.00 - - - - - - -- -- 2040000.00 -
Shenzhen Chiwan International Freight
Agency Co. Ltd. (Note 1) 5500000.00 5500000.00 - -5500000.00 - -- -- -- -- - -- -
Wharf Holdings Hong Kong (Note 1) 1070000.00 1070000.00 - -329991.42 -- -- -- -- - -- 740008.58 -
CM International Tech 130462575.02 130462575.02 - - -- -- -- -- -- - 130462575.02 -
Dongguan Shenchiwan Port Affairs
Co. Ltd. (Note 1) 186525000.00 186525000.00 - -186525000.00 -- - -- - - -- - -
Chiwan Shipping (Hong Kong) Limited
(Note 1) 1051789.43 1051789.43 - -1051789.43 -- - -- - - - - -
Shenzhen Chiwangang Container
Co. Ltd. 250920000.00 250920000.00 - - -- -- -- -- -- -- 250920000.00 -
CM Port 181479422.23 181479422.23 - - -- -- -- - -- - 181479422.23 -
Dongguan Shenchiwan Wharf
Co. Ltd.(Note 1) 175000000.00 175000000.00 - -175000000.00 -- - -- -- -- - -- -
Shenzhen Chiwan Tugboat Co.Ltd.(Note 1) 24000000.00 24000000.00 - -24000000.00 - - - - -- -- - -
Ports Development (Hong Kong)
Limited 29203045326.23 29203045326.23 - - - - - - - - 29203045326.23 -
Guangdong Yide Port Co. Ltd. 131866700.00 131866700.00 - - - - -- - - - 131866700.00 -
Zhoushan RoRo 193314814.00 106104786.00 - - - - - - -- - 106104786.00 43605014.00
Shunkong Port 240013200.00 240013200.00 - - - -- - - - -- 240013200.00 -
Sub-total 34735421366.37 34648211338.37 392406780.85 -392406780.85 -- -- -- -- -- -- 34648211338.37 43605014.00
II. Associates - - - - -- - - -- -
China Merchants Bonded Logistics
Co. Ltd. 304536629.73 393184304.83 - - 41558784.24 - - -52642901.24 - -- 382100187.83 -
China Merchants Northeast Asia
Development & Investment Co. Ltd. 1000000000.00 1021905232.79 - - 3210194.75 - 2000.41 - - -- 1025117427.95 -
Ningbo Zhoushan Port Company
Limited 15820766202.96 17532047355.93 - - 1083273143.30 -21711673.04 16639132.80 -563297386.70 - -- 18046950572.29 -
Antong Holdings 771935435.37 963996902.74 - -135217143.73 69159085.92 -83346.28 - -- - - 897855498.65 -
Sub-total 17897238268.06 19911133796.29 - -135217143.73 1197201208.21 -21795019.32 16641133.21 -615940287.94 -- - 20352023686.72 -
III. Joint ventures - - - - - -
Fujian Zhaohang Logistics Management
Partnership (Limited Partnership) 450000000.00 637858949.05 - - 41203800.62 -53599.82 - -- - - 679009149.85 --
Shenzhen Gangteng Internet
Technology Co. Ltd. 15000000.00 8225982.88 - - -1512501.65 - 1097560.99 - - -- 7811042.22 --
Yantai Port Group Laizhou Port
Co. Ltd. 749655300.00 803852105.71 - - 975707.34 -16000.00 -752919.68 -19271356.08 - - 784787537.29 -
Sub-total 1214655300.00 1449937037.64 - - 40667006.31 -69599.82 344641.31 -19271356.08 - - 1471607729.36 -
Total 53847314934.43 56009282172.30 392406780.85 -527623924.58 1237868214.52 -21864619.14 16985774.52 -635211644.02 - -- 56471842754.45 43605014.00
- 196 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
2. Long-term equity investments - continued
(1) Breakdown of long-term equity investments - continued
Note 1: This year our company will transfer 90% equity of Shenchiwan Tugboat 43.75% equity
of Dongguan Wharf 41.45% equity of Dongguan Port Affairs 100% equity of Chiwan
Shipping and 100% equity of Shenchiwan Freight Agency to Shenchiwan Development
for free. The subsidiary of our company Wharf Holdings Hong Kong transferred its 43.55%
equity in Dongguan Wharf 56.25% equity in Dongguan Port Affairs 10% equity in
Shenchiwan Tugboat and 4% equity in Chiwan Container Terminal Co.Ltd. To
Shenchiwan Development.
3. Operating income and operating costs
Item Current Year Prior Year Income Cost Income Cost
Principal operation - - - -
Other operations 21190068.20 3739443.84 18456183.80 3739443.84
Total 21190068.20 3739443.84 18456183.80 3739443.84
- 197 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
4. Investment income
(1) Details of investment income
Item Current Year Prior Year
Income from long-term equity investments 2573422379.01 2414410688.27
Including: Income from long-term equity investments
accounted for using the equity method 1237868214.52 1154581593.08
Income from long-term equity investments
accounted for using the cost method 1346072190.00 1259829095.19
Income from disposal of equity -10518025.51 -
Investment income from disposal of financial assets held
for trading 43444715.61 28210701.38
Income from investments in other equity instruments 9664500.00 10575000.00
Total 2626531594.62 2453196389.65
- 198 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
1. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
In accordance with Regulation on the Preparation of Information Disclosures by Companies Issuing
Securities No. 9 – Calculation and Disclosure of Return on Net Assets and Earnings Per Share (2010
revised) issued by the CSRC and relevant accounting standards the Group’s weighted average return on
net assets earnings per share and diluted earnings per share for the year of 2025 are calculated as follows:
Profit in reporting period Weighted average EPS return on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 7.3513% 1.8540 1.8537
Net profit attributable to ordinary shareholders after
deducting non-recurring profit or loss 7.0743% 1.7841 1.7838
- 199 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
2. BREAKDOWN OF NON-RECURRING PROFIT OR LOSS
In accordance with the provisions of China Securities Regulatory Commission's Explanatory
Announcement No. 1 on Information Disclosure for Companies Making Public Offering - Non-recurring
Profit or Loss (Revised in 2023) the Group's non-recurring profit or loss for the year ended 31 December
2025 is as follows:
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 -18117060.19
Government grants recognised 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 118986220.93
on the Company's profit or loss)
Income earned from lending funds to non-financial institutions and recognised
in profit or loss 94696529.90
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 3320297.91
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. -14869617.41
Gains from transactions with unfair transaction price -
Net profit or loss of subsidiaries recognised as a result of business combination of
enterprises under common control from the beginning of the year 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 126067007.70
financial assets and financial liabilities
Reversal of provision for accounts receivable that are tested for
impairment individually 11455120.96
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 recognised 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 37794746.74
Other profit or loss that meets the definition of non-recurring profit or loss 3856538.50
Sub-total 363189785.04
Tax effects -41848650.46
Effects of non-controlling interests (after tax) -147536278.02
Total 173804856.56
沪公网安备31011802005267号
