CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
CONTENTS PAGE(S)
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 - 202CHINA MERCHANTS PORT GROUP CO. LTD.AT 30 JUNE 2025
Consolidated Balance Sheet
RMB
Item Notes 30/06/2025 31/12/2024
Current Assets:
Cash and bank balances (VIII)1 14996290255.16 16630400701.13
Including: Cash deposited in the finance company (XV)6(1) 2904541481.79 4745991554.35
Financial assets held for trading (VIII)2 4833561128.78 5685135472.01
Derivative financial assets - -
Bills receivable (VIII)3 181745578.07 270127883.63
Accounts receivable (VIII)4 2241182255.01 1193408383.78
Receivables under financing - -
Prepayments (VIII)5 92525839.85 59177117.22
Funds receivable under centralised management - -
Other receivables (VIII)6 1851417043.98 1166499343.90
Including: Dividends receivable (VIII)6 1247854681.90 554387723.94
Inventories (VIII)7 315904888.70 269958020.34
Including: Raw materials 309985649.99 260819412.56
Goods in stock (finished products) 4740217.77 4683965.30
Contract assets - -
Assets held for sale - -
Non-current assets due within one year (VIII)8 34998540.25 34997992.08
Other current assets (VIII)9 235896898.97 251697812.77
Total current assets 24783522428.77 25561402726.86
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables (VIII)10 3862586894.19 3777373574.70
Long-term equity investments (VIII)11 101775373381.96 100018029894.96
Investments in other equity instruments (VIII)12 139451887.05 139451887.05
Other non-current financial assets (VIII)13 28524600.31 28524600.31
Investment properties (VIII)14 3225253829.56 3288690070.60
Fixed assets (VIII)15 30161818167.77 30689217791.45
Including: Cost of fixed assets 56440763406.15 55832500023.64
Accumulated depreciation 26065839227.77 24930618296.33
Provision for impairment of fixed assets 213367342.81 213290383.06
Construction in progress (VIII)16 3792648711.73 3311109996.59
Right-of-use assets (VIII)17 8901865474.39 8957352063.54
Intangible assets (VIII)18 17824133457.04 17335082422.84
Development costs (IX)2 28975366.19 63395053.69
Goodwill (VIII)19 6233179553.36 5933310929.34
Long-term deferred expenses (VIII)20 924598080.29 940404479.94
Deferred tax assets (VIII)21 371891788.29 365481207.77
Other non-current assets (VIII)22 1090229540.25 1109025181.81
Total non-current assets 178360530732.38 175956449154.59
TOTALASSETS 203144053161.15 201517851881.45
The accompanying notes form part of the financial statements.- 1 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 30 JUNE 2025
Consolidated Balance Sheet - continued
RMB
Item Notes 30/06/2025 31/12/2024
Current liabilities:
Short-term borrowings (VIII)23 12304605732.70 12791242141.69
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable (VIII)24 - 1536194.00
Accounts payable (VIII)25 675684712.35 785830532.33
Advance payments received (VIII)26 16210810.21 14576237.84
Contract liabilities (VIII)27 349057215.91 267888272.62
Employee benefits payable (VIII)28 1077454686.93 1168592349.15
Including: Payroll payable 1025617254.27 1126682376.20
Welfare payable 5222103.31 -
Taxes payable (VIII)29 840396207.20 725165726.32
Including: Taxes payable 834255502.34 714248068.55
Other payables (VIII)30 3101766024.67 1923980312.98
Including: Dividends payable (VIII)30 1451609827.45 132334744.28
Liabilities held for sale - -
Non-current liabilities due within one year (VIII)31 11125777985.01 10506682795.60
Other current liabilities (VIII)32 2202056590.49 4061201760.72
Total current liabilities 31693009965.47 32246696323.25
Non-current Liabilities:
Long-term borrowings (VIII)33 12769621270.51 15582593255.65
Bonds payable (VIII)34 15856475119.75 13875559119.52
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities (VIII)35 1481774029.97 1387206990.51
Long-term payables (VIII)36 3666248761.37 3204582672.75
Long-term employee benefits payable (VIII)37 652014350.46 655658044.98
Provisions (VIII)38 78916799.59 159435795.50
Deferred income (VIII)39 1248228496.50 1268975316.61
Deferred tax liabilities (VIII)21 4932616591.29 4795985333.59
Other non-current liabilities (VIII)40 177475262.01 182720254.84
Total non-current liabilities 40863370681.45 41112716783.95
TOTALLIABILITIES 72556380646.92 73359413107.20
The accompanying notes form part of the financial statements.- 2 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 30 JUNE 2025
Consolidated Balance Sheet - continued
RMB
Item Notes 30/06/2025 31/12/2024
Shareholders' equity:
Share capital (VIII)41 2501508381.00 2501308481.00
Including: State capital - -
State-owned corporate capital 2236042522.00 2236269506.00
Collective capital - -
Private capital 238070596.00 240947591.00
Foreign capital 27395263.00 24091384.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve (VIII)42 37225842521.65 37362981831.67
Less: Treasury shares 319823707.36 50559789.14
Other comprehensive income (VIII)43 -912631681.30 -1558381237.45
Including: Translation difference of financial statements
denominated in foreign currencies -618526427.60 -1030995258.63
Specific reserve (VIII)44 58981586.63 40074647.27
Surplus reserve (VIII)45 1249537330.50 1249537330.50
Including: Legal reserve 1249537330.50 1249537330.50
Arbitrary accumulation fund - -
Retained earnings (VIII)46 22745034528.33 21957778579.11
Total equity attributable to shareholders of the Company 62548448959.45 61502739842.96
Non-controlling interests 68039223554.78 66655698931.29
TOTAL SHAREHOLDERS' EQUITY 130587672514.23 128158438774.25
TOTALLIABILITIES AND SHAREHOLDERS' EQUITY 203144053161.15 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.AT 30 JUNE 2025
Balance Sheet of the Company
RMB
Item Notes 30/06/2025 31/12/2024
Current Assets:
Cash and bank balances 2573380351.30 4051544937.38
Including: Cash deposited in the finance company 854002764.44 2738121884.17
Financial assets held for trading 1700419178.08 2902402602.73
Derivative financial assets - -
Bills receivable - -
Accounts receivable - -
Receivables under financing - -
Prepayments - 879205.65
Funds receivable under centralised management - -
Other receivables (XX)1 2073806770.80 2413442661.68
Including: Dividends receivable (XX)1 633862578.90 965690879.89
Inventories - -
Including: Raw materials - -
Goods in stock (finished products) - -
Contract assets - -
Assets held for sale - -
Non-current assets due within one year 141372.83 -
Other current assets 8449435.94 8783543.80
Total current assets 6356197108.95 9377052951.24
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables 217225160.36 9546673.32
Long-term equity investments (XX)2 56177017105.17 56009282172.30
Investments in other equity instruments 130125719.67 130125719.67
Other non-current financial assets - -
Investment properties - -
Fixed assets 25167038.15 25785696.83
Including: Cost of fixed assets 33875597.84 33196561.49
Accumulated depreciation 8708559.69 7410864.66
Provision for impairment of fixed assets - -
Construction in progress 607774.34 607774.34
Right-of-use assets - -
Intangible assets 93452310.87 55685403.63
Development costs 9629737.65 53435391.51
Goodwill - -
Long-term deferred expenses 625774.36 287141.10
Deferred tax assets - -
Other non-current assets - -
Total non-current assets 56653850620.57 56284755972.70
TOTAL ASSETS 63010047729.52 65661808923.94
The accompanying notes form part of the financial statements.- 4 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 30 JUNE 2025
Balance Sheet of the Company - continued
RMB
Item Notes 30/06/2025 31/12/2024
Current Liabilities:
Short-term borrowings 272439931.95 136552893.75
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable - -
Accounts payable - -
Advance payments received - -
Contract liabilities 2804653.86 -
Employee benefits payable 58883505.04 57295154.90
Including: Payroll payable 58801429.24 57135815.24
Welfare payable - -
Taxes payable 236735.71 2967430.48
Including: Taxes payable 236735.71 2967430.48
Other payables 508330169.20 413758779.36
Including: Dividends payable 34577578.12 34577578.12
Liabilities held for sale - -
Non-current liabilities due within one year 4180908570.87 3126770180.31
Other current liabilities 2010009532.92 4020214246.58
Total current liabilities 7033613099.55 7757558685.38
Non-current Liabilities:
Long-term borrowings 6959000000.00 7966000000.00
Bonds payable 6000000000.00 6000000000.00
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities - -
Long-term payables - -
Long-term employee benefits payable - -
Provisions - -
Deferred income 9900000.02 11000000.00
Deferred tax liabilities 36504578.23 37000434.40
Other non-current liabilities - -
Total non-current liabilities 13005404578.25 14014000434.40
TOTAL LIABILITIES 20039017677.80 21771559119.78
The accompanying notes form part of the financial statements.- 5 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 30 JUNE 2025
Balance Sheet of the Company - continued
RMB
Item Notes 30/06/2025 31/12/2024
Shareholders’ equity
Share capital 2501508381.00 2501308481.00
Including: State capital - -
State-owned corporate capital 2236042522.00 2236269506.00
Collective capital - -
Private capital 238070596.00 240947591.00
Foreign capital 27395263.00 24091384.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve 37830209400.51 37773833882.62
Less: Treasury shares 319823707.36 50559789.14
Other comprehensive income 121180807.14 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 1588417839.93 2285715457.11
Total shareholders’ equity 42971030051.72 43890249804.16
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 63010047729.52 65661808923.94
The accompanying notes form part of the financial statements.- 6 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Consolidated Income Statement
RMB
Item Notes For the six months ended 30 June2025 2024
I. Total operating income (VIII)47 8468491376.08 7975193083.64
Including: Operating income 8468491376.08 7975193083.64
II. Total operating costs 6475255491.56 6443577275.01
Including: Operating costs (VIII)47 4596264092.50 4390869294.96
Taxes and surcharges (VIII)48 176215156.49 163583488.76
Selling and distribution expenses - -
General and administrative expenses (VIII)49 759073109.44 808178756.18
Research and development expenses (VIII)50 107131146.55 84732961.30
Financial expenses (VIII)51 836571986.58 996212773.81
Including: Interest expenses 1015802958.42 1148465132.44
Interest income 200788693.82 240157542.78
Net exchange loss (“-” for gains) 16212019.97 84715364.32
Add: Other income (VIII)52 125162556.03 108396207.87
Investment income (“-” for losses) (VIII)53 3652835333.37 3437849898.46
Including: Income from investments in associates
and joint ventures (VIII)53 3606506212.05 3357745272.28
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)54 21035446.60 465852896.11
Reversal of credit impairment (“-” for losses) (VIII)55 4693801.77 315726501.93
Impairment losses (“-” for losses) (VIII)56 1621.20 -
Gains from asset disposals (“-” for losses) (VIII)57 6688854.69 884468.18
The accompanying notes form part of the financial statements.- 7 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Consolidated Income Statement - continued
RMB
Item Notes For the six months ended 30 June2025 2024
III. Operating profit 5803653498.18 5860325781.18
Add: Non-operating income (VIII)58 17571993.99 17538434.73
Including: Government grants - -
Less: Non-operating expenses (VIII)59 12789299.83 33699628.09
IV. Profit before income tax 5808436192.34 5844164587.82
Less: Income tax expenses (VIII)62 728408809.32 804518878.51
V. Net profit 5080027383.02 5039645709.31
(I) Net profit classified by continuity of operations
1. Net profit from continuing operation 5080027383.02 5039645709.31
2. Net profit from discontinued operation - -
(II) Net profit classified by ownership
1. Attributable to shareholders of the Company 2626638199.47 2546828456.08
2. Non-controlling interests 2453389183.55 2492817253.23
VI. Other comprehensive income net of tax (VIII)43 1602339066.79 -738931293.40
(I) Other comprehensive income (net of tax) attributable to
shareholders of the Company 645540659.01 -299629708.56
1. Items that will not be reclassified to profit or loss 3712517.74 2419297.96
(1) Remeasurement of defined benefit plan - -
(2) Other comprehensive income recognised under the equity
method 3712517.74 2419297.96
(3) Changes in fair value of investments in other equity
instruments - -
(4) Changes in fair value of entity’s own credit risk - -
(5) Others - -
2. Item that reclassified to profit or loss 641828141.27 -302049006.52
(1) Other comprehensive income recognised under the equity
method 229359310.24 -42117286.47
(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 412468831.03 -259931720.05
(7) Others - -
(II) Other comprehensive income (net of tax) attributable to
non-controlling interests 956798407.78 -439301584.84
VII. Total comprehensive income for the period 6682366449.81 4300714415.91
(I) Attributable to shareholders of the Company 3272178858.48 2247198747.52
(II) Attributable to non-controlling interests 3410187591.33 2053515668.39
VIII. Earnings per share
(I) Basic earnings per share (RMB/share) 1.05 1.02
(II) Diluted earnings per share (RMB/share) 1.05 1.02
The accompanying notes form part of the financial statements.- 8 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Income Statement of the Company
RMB
Item Notes For the six months ended 30 June2025 2024
I. Total operating income (XX)3 10468785.48 8997504.49
Less: Operating costs (XX)3 1869721.92 1869721.92
Taxes and surcharges 40139.06 121516.02
Selling and distribution expenses - -
General and administrative expenses 68889403.19 63984932.28
Research and development expenses 4901396.85 5232425.72
Financial expenses 202419199.24 205245017.72
Including: Interest expenses 230132141.74 242938818.40
Interest income 31430097.06 37911483.72
Net exchange loss (“-” for gains) 3423695.95 -12932.54
Add: Other income 1308142.76 214855.53
Investment income (“-” for losses) (XX)4 1407966977.76 976137968.37
Including: Income from investments in associates
and joint ventures (XX)4 616975745.63 509529672.39
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) 419178.08 2597260.27
Reversal of credit impairment (“-” for losses) - -
Impairment losses (“-” for losses) - -
Gains from asset disposals (“-” for losses) - -9551.52
II. Operating profit 1142043223.82 711484423.48
Add: Non-operating income 0.01 -
Including: Government grants - -
Less: Non-operating expenses - -
III. Profit before income tax 1142043223.83 711484423.48
Less: Income tax expenses -495856.17 519863.01
IV. Net profit 1142539080.00 710964560.47
Net profit from continuing operations (“-” for net loss) 1142539080.00 710964560.47
Net profit from discontinued operations (“-” for net loss) - -
V. Other comprehensive income net of tax -9233634.93 11720178.46
(I) Items that will not be reclassified to profit or loss - -
1. Remeasurement of the defined benefit plan - -
2. Other comprehensive income recognised
under the equity method - -
3. Changes in fair value of investments in other equity
instruments - -
4. Changes in fair value of entity’s own credit risk - -
5. Others - -
(II) Items that may be reclassified to profit or loss -9233634.93 11720178.46
1. Other comprehensive income recognised
under the equity method -9233634.93 11720178.46
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 period 1133305445.07 722684738.93
The accompanying notes form part of the financial statements.- 9 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Consolidated Cash Flow Statement
RMB
Item Notes For the six months ended 30 June2025 2024
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 7857539602.92 7311373521.74
Refund of taxes 22625702.07 41020468.74
Proceeds from other operating activities (VIII)65(1) 434331435.71 758800617.46
Sub-total of cash inflows 8314496740.70 8111194607.94
Payment for goods and services 2213195912.82 1997624016.80
Payment to and for employees 1920159455.08 1827233164.62
Payment of various taxes 779324979.56 779954861.85
Payment for other operating activities (VIII)65(1) 393123076.45 383998859.64
Sub-total of cash outflows 5305803423.91 4988810902.91
Net cash inflow from operating activities (VIII)66(1) 3008693316.79 3122383705.03
II. Cash flows from investing activities:
Proceeds from disposal of investments 22390000000.00 11200000000.00
Investment returns received 1400094606.45 2049095054.18
Net proceeds from disposal of fixed assets intangible assets and
other long-term assets 92000595.10 4259742.53
Net proceeds from disposal of subsidiaries and other business
units - -
Proceeds from other investing activities (VIII)65(2) 193281858.34 -
Sub-total of cash inflows 24075377059.89 13253354796.71
Payment for acquisition of fixed assets intangible assets and
other long-term assets 1057042867.97 915709052.44
Payment for acquisition of investments 21608606292.72 9970468537.76
Net payment for acquisition of subsidiaries and other business
units 13185876.35 293538608.94
Payment for other investing activities (VIII)65(2) 125708873.81 260079588.44
Sub-total of cash outflows 22804543910.85 11439795787.58
Net cash inflow from investing activities 1270833149.04 1813559009.13
III. Cash flows from financing activities:
Proceeds from investors 4628001.40 25266119.97
Including: Proceeds from non-controlling shareholders of
subsidiaries - 10000000.00
Proceeds from borrowings 9304432954.50 12027711156.20
Proceeds from other financing activities (VIII)65(3) 255592133.41 40308276.99
Sub-total of cash inflows 9564653089.31 12093285553.16
Repayments of borrowings 11894107127.58 14254925680.86
Payment for dividends profit distributions or interests (VIII)66(3) 3230960884.51 1110413413.55
Including: Dividends and profits paid to
non-controlling shareholders of subsidiaries 572192997.59 132165604.67
Payment for other financing activities (VIII)65(3) 381049285.64 291254795.48
Sub-total of cash outflows 15506117297.73 15656593889.89
Net cash outflow from financing activities -5941464208.42 -3563308336.73
IV. Effect of foreign exchange rate changes on cash
and cash equivalents 51426294.43 -85035447.73
V. Net increase in cash and cash equivalents -1610511448.16 1287598929.70
Add: Cash and cash equivalents at the beginning of the period (VIII)66(1) 16515069554.91 16018613631.10
VI. Cash and cash equivalents at the end of the period (VIII)66(2) 14904558106.75 17306212560.80
The accompanying notes form part of the financial statements.- 10 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Cash Flow Statement of the Company
RMB
Item Notes For the six months ended 30 June2025 2024
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services - -
Refunds of taxes 220631.35 4719888.38
Proceeds from other operating activities 129026795.99 111793289.71
Sub-total of cash inflows 129247427.34 116513178.09
Payment for goods and services 3450000.00 -
Payment to and for employees 53334144.19 54465051.41
Payment of various taxes 176611.04 135871.68
Payment for other operating activities 16200899.11 31628988.51
Sub-total of cash outflows 73161654.34 86229911.60
Net cash inflow from operating activities 56085773.00 30283266.49
II. Cash flows from investing activities:
Proceeds from disposal of investments 12900000000.00 3400000000.00
Investment returns received 1615238889.61 842543860.33
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 1455335973.18 1097124093.96
Sub-total of cash inflows 15970574862.79 5339672574.29
Payment for acquisition of fixed assets intangible assets and
other long-term assets 1390143.47 13173117.25
Payment for acquisition of investments 11700000000.00 2910408200.00
Net payment for acquisition of subsidiaries and other
business units - -
Payment for other investing activities 1645739266.80 1990006067.51
Sub-total of cash outflows 13347129410.27 4913587384.76
Net cash inflow from investing activities 2623445452.52 426085189.53
III. Cash flows from financing activities:
Proceeds from investors 4628001.40 15266119.97
Proceeds from borrowings 2152406452.28 6081483943.48
Proceeds from other financing activities 7586443.41 308276.99
Sub-total of cash inflows 2164620897.09 6097058340.44
Repayments of borrowings 4008000000.00 4178000000.00
Payment for dividends profit distributions or interests 2031554308.07 203207855.76
Payment for other financing activities 272507639.18 1383669.41
Sub-total of cash outflows 6312061947.25 4382591525.17
Net cash (outflow)/inflow from financing activities -4147441050.16 1714466815.27
IV. Effect of foreign exchange rate changes on cash
and cash equivalents -267786.56 96546.12
V. Net increase in cash and cash equivalents
(“-” for net decrease) -1468177611.20 2170931817.41
Add: Cash and cash equivalents at the beginning of the period 4016283989.90 3280985718.84
VI. Cash and cash equivalents at the end of the period 2548106378.70 5451917536.25
The accompanying notes form part of the financial statements.- 11 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Consolidated Statement of Changes in Shareholders' Equity
RMB
For the six months ended 30 June 2025
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
Item Other difference of Non-controlling
Share capital Capital reserve Less: Treasury comprehensive financial Specificshares Surplus reserve Retained earnings Subtotal interests
Total
Prefere Perpetu income statements
reserve
nce al bonds others denominated inshares 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 period 2501308481.00 - - - 37362981831.67 50559789.14 -1558381237.45 -1030995258.63 40074647.27 1249537330.50 21957778579.11 61502739842.96 66655698931.29 128158438774.25
III. Changes for the period 199900.00 - - - -137139310.02 269263918.22 645749556.15 412468831.03 18906939.36 - 787255949.22 1045709116.49 1383524623.49 2429233739.98
(I) Total comprehensive income - - - - - - 645540659.01 412468831.03 - - 2626638199.47 3272178858.48 3410187591.33 6682366449.81
(II) Shareholders’ contributions of capital 199900.00 - - - -137139310.02 269263918.22 208897.14 - 33514.19 - 454446.93 -405506469.98 -197643127.49 -603149597.47
1. Contribution by ordinary shareholders 199900.00 - - - 3341011.41 - - - - - - 3540911.41 - 3540911.41
2. Contribution by holders of other equity
instruments - - - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -442650.00 - - - - - - -442650.00 -211470.30 -654120.30
4. Others - - - - -140037671.43 269263918.22 208897.14 - 33514.19 - 454446.93 -408604731.39 -197431657.19 -606036388.58
(III) Appropriation of profits - - - - - - - - - - -1839836697.18 -1839836697.18 -1845390388.42 -3685227085.60
1. Appropriation for surplus reserve - - - - - - - - - - - - - -
Including: Legal reserve - - - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1839836697.18 -1839836697.18 -1873154898.22 -3712991595.40
3. Others - - - - - - - - - - - - 27764509.80 27764509.80
(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 - - - - - - - - 18873425.17 - - 18873425.17 16370548.07 35243973.24
1. Appropriation during the period - - - - - - - - 29389276.80 - - 29389276.80 28395051.01 57784327.81
2. Utilisation during the period - - - - - - - - -10515851.63 - - -10515851.63 -12024502.94 -22540354.57
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the period 2501508381.00 - - - 37225842521.65 319823707.36 -912631681.30 -618526427.60 58981586.63 1249537330.50 22745034528.33 62548448959.45 68039223554.78 130587672514.23
- 12 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
For the six months ended 30 June 2024
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
statements earnings Subtotal interests
Total
Preference perpetual shares incomeothers denominated inshares bonds 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 period 2499074661.00 - - - 37076846803.06 - -903626594.35 -453976318.25 34003994.41 1095980563.68 19045313519.75 58847592947.55 66722341481.26 125569934428.81
III. Changes for the period 1207820.00 - - - 252130900.32 - -299629708.56 -259931720.05 15647281.73 - 1096664617.10 1066020910.59 337802759.81 1403823670.40
(I) Total comprehensive income - - - - - - -299629708.56 -259931720.05 - - 2546828456.08 2247198747.52 2053515668.39 4300714415.91
(II) Shareholders’ contributions of capital 1207820.00 - - - 252130900.32 - - - - - - 253338720.32 -121000479.19 132338241.13
1. Contribution by ordinary shareholders 1207820.00 - - - 21539187.16 - - - - - - 22747007.16 10000000.00 32747007.16
2. Contribution by holders of other equity
instruments - - - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -3219134.56 - - - - - - -3219134.56 -1037221.12 -4256355.68
4. Others - - - - 233810847.72 - - - - - - 233810847.72 -129963258.07 103847589.65
(III) Appropriation of profits - - - - - - - - - - -1450163838.98 -1450163838.98 -1608593994.12 -3058757833.10
1. Appropriation for surplus reserve - - - - - - - - - - - - - -
Including: Legal reserve - - - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1450163838.98 -1450163838.98 -1581056078.83 -3031219917.81
3. Others - - - - - - - - - - - - -27537915.29 -27537915.29
(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 - - - - - - - - 15647281.73 - - 15647281.73 13881564.73 29528846.46
1. Appropriation during the period - - - - - - - - 26486147.83 - - 26486147.83 27203210.18 53689358.01
2. Utilisation during the period - - - - - - - - -10838866.10 - - -10838866.10 -13321645.45 -24160511.55
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the period 2500282481.00 - - - 37328977703.38 - -1203256302.91 -713908038.30 49651276.14 1095980563.68 20141978136.85 59913613858.14 67060144241.07 126973758099.21
The accompanying notes form part of the financial statements.- 13 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
The Company's Statement of Changes in Shareholders' Equity
RMB
For the six months ended 30 June 2025
Other equity instruments Including: Translation
Item Other comprehensive difference of financialShare capital Preference perpetual Capital reserve Less: Treasury shares statements Specific reserve Surplus reserve Retained earnings Total
shares bonds others
income 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 period 2501308481.00 - - - 37773833882.62 50559789.14 130414442.07 - - 1249537330.50 2285715457.11 43890249804.16
III. Changes for the period 199900.00 - - - 56375517.89 269263918.22 -9233634.93 - - - -697297617.18 -919219752.44
(I) Total comprehensive income - - - - - - -9233634.93 - - - 1142539080.00 1133305445.07
(II) Shareholders’ contributions of capital 199900.00 - - - 56375517.89 269263918.22 - - - - - -212688500.33
1. Contribution by ordinary shareholders 199900.00 - - - 3341011.41 - - - - - - 3540911.41
2. Contribution by holders of other equity instruments - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -442650.00 - - - - - - -442650.00
4. Others - - - - 53477156.48 269263918.22 - - - - - -215786761.74
(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 period - - - - - - - - - - - -
2. Utilisation during the period - - - - - - - - - - - -
(VI) Others - - - - - - - - - - - -
IV. Balance at the end of the period 2501508381.00 - - - 37830209400.51 319823707.36 121180807.14 - - 1249537330.50 1588417839.93 42971030051.72
- 14 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
For the six months ended 30 June 2024
Other equity instruments Including: Translation
Item Other comprehensive difference of financialShare capital Preference perpetual Capital reserve Less: Treasury shares income statements Specific reserve Surplus reserve Retained earnings Total
shares bonds others denominated in foreigncurrencies
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 period 2499074661.00 - - - 37704543586.11 - 120520832.83 - - 1095980563.68 1999000567.57 43419120211.19
III. Changes for the period 1207820.00 - - - 20433816.31 - 11720178.46 - - - -739199278.51 -705837463.74
(I) Total comprehensive income - - - - - - 11720178.46 - - - 710964560.47 722684738.93
(II) Shareholders’ contributions of capital 1207820.00 - - - 20433816.31 - - - - - - 21641636.31
1. Contribution by ordinary shareholders 1207820.00 - - - 21539187.16 - - - - - - 22747007.16
2. Contribution by holders of other equity instruments - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -3253422.05 - - - - - - -3253422.05
4. Others - - - - 2148051.20 - - - - - - 2148051.20
(III) Appropriation of profits - - - - - - - - - - -1450163838.98 -1450163838.98
1. Appropriation for surplus reserve - - - - - - - - - - - -
Including: Legal reserve - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1450163838.98 -1450163838.98
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 period - - - - - - - - - - - -
2. Utilisation during the period - - - - - - - - - - - -
(VI) Others - - - - - - - - - - - -
IV. Balance at the end of the period 2500282481.00 - - - 37724977402.42 - 132241011.29 - - 1095980563.68 1259801289.06 42713282747.45
The accompanying notes form part of the financial statements.- 15 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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
28 August 2025.
(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 30 June 2025 the Group had total current liabilities in excess of total current assets by RMB
6909487536.70. As at 30 June 2025 the Group had available and unused credit facilities and
bonds amounting to RMB 67193291009.55 which is greater than the balance of the net current
liabilities are expected to be accessible beyond twelve months from the date of the balance sheet.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 30 June 2025 and the consolidated and Company's
operating results shareholders’ equity and cash flow for the period from 1 January to 30 June
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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized based on the
valuation amounts confirmed by the state-owned assets administration department. Where assets
are impaired provisions for asset impairment are made in accordance with the relevant
requirements.Where the historical cost is adopted as the measurement basis assets are recorded at the amount
of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the
time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or
the contractual amounts for assuming the present obligation or at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date regardless of whether
that price is directly observable or estimated using valuation technique. Fair value measurement
and 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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% of
investments the amount of total assets
Significant construction in progress The period-end carrying amount of an individual construction in progressranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress≥20% of
in progress the amount of total 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% ofthe 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 consolidatedassets and in which the investment income recognized under the equity
method accounts for≥10% of the amount of total consolidated profit
The amount exceeds 0.3% of the amount of total assets individually
Significant commitments including reorganization mergers and acquisitions and building of
construction in progress etc.- 18 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss in the periods when they
are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date. 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized as goodwill which is measured at cost on initial recognition.Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets the acquirer reassesses the measurement of the fair values of the acquiree's
identifiable assets liabilities and contingent liabilities and measurement of the cost of
combination. If after that reassessment the cost of combination is still less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets the acquirer recognizes the
remaining difference immediately in profit or loss for the current period.
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 recognized. 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss of the current period; if acquiree' shares held
before acquisition date involve changes in other comprehensive income and other changes in
owners' equity under equity method it will be transferred to income of acquisition date.When the Group loses control over a subsidiary due to disposal of equity investment or other
reasons any retained interest is re-measured at its fair value at the date when control is lost. The
difference between 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized as other
comprehensive income. When losing control the cumulated other comprehensive income is
transferred to profit or loss of the period of losing control. If the transactions of disposal of equity
investments in a subsidiary are not assessed as a package deal these transactions are accounted
for as unrelated transactions.
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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
9. Joint arrangements - continued
When a group entity undertakes its activities under joint operations the Group as a joint operator
recognizes in relation to its interest in a joint operation: - its assets including its share of any
assets held jointly; its liabilities including its share of any liabilities incurred jointly; its revenue
from the sale of its share of the output arising from the joint operation; its share of the revenue
from the sale
of the output by the joint operation and its expenses including its share of any expenses incurred
jointly. The Group accounts for the assets liabilities revenues and expenses relating to its interest
in a joint operation in accordance with the accounting standards applicable to the particular assets
liabilities revenues and expenses.
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 recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.For financial assets purchased or sold in regular ways assets to be received and liabilities to be
assumed are recognized on the transaction date or assets sold are derecognized on that date.Financial assets and financial liabilities are initially measured at fair value (the method for
determining the fair values of the financial assets and financial liabilities is set out in related
disclosures under "basis of accounting and principle of measurement" in note IV. 4). For financial
assets and financial liabilities at fair value through profit or loss transaction costs are immediately
recognized in profit or loss. For other financial assets and financial liabilities transaction costs are
included in their initial recognized amounts. Upon initial recognition of contract assets 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
recognized 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 recognized when the financial assets or
financial liabilities are initially recognized.- 24 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating the interest income or interest expenses over the relevant
accounting periods.The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the book value of the financial asset or
to the amortized cost of the financial liability. When calculating the effective interest rate the
Group estimates future cash flows considering all contractual terms of the financial asset or
financial liability (such as repayment in advance extension call option or other similar options
etc.) without considering the expected credit losses.The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognized net of principal repaid plus or less the cumulative amortized
amount arising from amortization of the difference between the amount initially recognized and
the amount at the maturity date using the effective interest method net of cumulative credit loss
allowance (only applicable to financial assets).
11.1 Classification recognition and measurement of financial assets
Subsequent to initial recognition the Group's financial assets of various categories are
subsequently measured at amortized cost at fair value through other comprehensive income or at
fair value through profit or loss.If the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding and the financial
asset is held within a business model whose objective is achieved by collecting contractual cash
flows the Group classifies such financial asset as financial assets at amortized cost which include
cash and bank balances 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized through business combination not involving enterprises
under common control as financial assets at FVTOCI on an individual basis. Such financial
assets at FVTOCI are presented as investments in other equity instruments.A financial asset is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of selling in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the
Group manages together and there is objective evidence that the Group has a recent actual
pattern of short-term profit-taking; or
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 amortized
cost and financial assets at FVTOCI are classified as financial assets at FVTPL.Upon initial recognition the Group may irrevocably designate the financial assets 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 amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using
the effective interest method. Gain or loss arising from impairment or derecognition is recognized
in profit or loss.- 26 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
11.1.1 Financial assets measured at amortized cost - continued
For financial assets measured at amortized cost the Group recognizes interest income using
effective interest method. The Group calculates and recognizes interest income through book
value of financial assets multiplying effective interest rate except for the following circumstances:
For purchased or originated credit-impaired financial assets the Group calculates and
recognizes the interest income based on amortized cost of the financial asset and the
effective interest rate through credit adjustment since initial recognition.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 amortized 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 amortized cost. Upon derecognition
the accumulated gains or losses previously included in other comprehensive income are
transferred to profit or loss for the period.Changes in fair value of non-trading equity instrument investments designated as financial assets
at FVTOCI are recognized in other comprehensive income and the cumulative gains or losses
previously recognized in other comprehensive income allocated to the part derecognized are
transferred and included in retained earnings. During the period in which the Group holds the
non-trading equity instruments revenue from dividends is recognized in profit or loss for the
current period when (1) the Group has established the right of collecting dividends; (2) it is
probable that the associated economic benefits will flow to the Group; and (3) the amount of
dividends can be measured reliably.- 27 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
11.1.3 Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value. Gain or loss arising from
changes in fair value and dividends and interest related to the financial assets are recognized in
profit or loss.
11.2 Impairment of financial instruments
For financial assets at amortized cost financial assets classified as at FVTOCI lease receivables
contract assets loan commitments that are not financial liabilities at FVTPL financial liabilities
that are not at FVTPL and financial guarantee contracts that are not qualified for derecognition
due to the transfer of financial assets or financial liabilities arising from continuing involvement
of the transferred financial assets the Group accounts for the impairment and recognizes the
provision for losses on the basis of expected credit loss (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 recognizes the
provision for losses at an amount equivalent to lifetime ECL.For other financial instruments (other than purchased or originated credit-impaired financial
assets) the Group assesses the changes in credit risk since initial recognition of relevant financial
instruments at each balance sheet date. If the credit risk has increased significantly since initial
recognition of the financial instruments the Group recognizes the provision for losses at an
amount equivalent to lifetime ECL; if the credit risk has not increased significantly since initial
recognition of the financial instruments the Group recognizes the provision for losses at an
amount equivalent to 12-month ECL. The increase or reversal of credit impairment for financial
assets other than those classified as at FVTOCI is recognized as impairment loss or gain and
included in profit or loss for the period. For financial assets classified as at FVTOCI the
provision for bad debts is recognized in other comprehensive income and the impairment loss or
gain is included in profit or loss for the period without reducing the carrying amount of the
financial assets in the balance sheet.Where the Group has measured the provision for losses at an amount equivalent to lifetime ECL
of a financial instrument in prior accounting period but the financial instrument no longer
satisfies the criteria of significant increase in credit risk since initial recognition at the current
balance sheet date the Group recognizes the provision for losses of the financial instrument at an
amount equivalent to 12-month ECL at the current balance sheet date with any resulting reversal
of provision for losses recognized as impairment gains in profit or loss for the period.- 28 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.1 Significant increase of credit risk
The Group uses reasonable and supportable forward-looking information to assess whether the
credit risk has increased significantly since initial recognition by comparing the risk of a default
occurring on the financial instrument at the balance sheet date with the risk of a default occurring
on the financial instrument at the date of initial recognition. For loan commitments and financial
guarantee contracts the date on which the Group becomes a party to the irrevocable commitment
is considered to be the date of initial recognition in the application of criteria related to the
financial instrument for impairment.In particular the following information is taken into account when assessing whether credit risk
has increased significantly:
(1) Significant changes in internal price indicators resulting from changes in credit risk;
(2) Significant changes in the rates or other terms of an existing financial instrument if the
instrument was newly originated or issued at the balance sheet date (such as more
stringent covenants increased amounts of collateral or guarantees or higher rate of return
etc.);
(3) Significant changes in the external market indicators of credit risk of the same financial
instrument or similar financial instruments with the same expected duration. These
indicators include: credit spreads credit default swap prices against borrower length of
time and extent to which the fair value of financial assets is less than their amortized cost
and other market information related to the borrower (such as the borrower's debt
instruments or changes in the price of equity instruments);
(4) An actual or expected significant change in the financial instrument's external credit rating;
(5) An actual or expected decrease in the internal credit rating for the debtor;
(6) Adverse changes in business financial or economic conditions that are expected to cause a
significant decrease in the debtor's ability to meet its debt obligations;
(7) An actual or expected significant change in the operating results of the debtor;
(8) Significant increase in credit risk of other financial instruments issued by the same debtor;
(9) Significant adverse changes in the regulatory economic or technological environment of
the debtor;
(10) Significant changes in the value of the collaterals or the quality of guarantees or credit
enhancements provided by third parties which are expected to reduce the debtor's
economic motives to repay within the time limit specified in contract or affect the
probability of default;
(11) Significant change in the debtor's economic motives to repay within the time limit
specified in contract;
(12) Expected changes to loan contract including the exemption or revision of contractual
obligations the granting of interest-free periods the jump in interest rates the requirement
for additional collateral or guarantees or other changes in the contractual framework for
financial instruments that may result from the breach of contract;
- 29 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 etc..
(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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized by assessing a series of possible results;
time value of money; reasonable and supportable information related to historical events current
condition and forecast of future economic position that is available without undue cost or effort at
the balance sheet date.
11.2.4 Write-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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.3 Transfer of financial assets
The Group will derecognize a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset and it retains control of the financial asset the Group will recognize the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognize an
associated liability. The Group will measure relevant liabilities as follows:
For transferred financial assets carried at amortized cost the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortized cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortized cost of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant
liabilities are not designated as financial liabilities at fair value through profit or loss.For transferred financial assets carried at fair value the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less fair value of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of fair value of obligations assumed by the Group
(if the Group assumes relevant obligations upon transfer of financial assets). Accordingly
the fair value of relevant rights and obligations shall be measured on an individual basis.For the transfer of a financial asset in its entirety that satisfies the derecognition criteria the
difference between (1) the carrying amount of the financial asset transferred and (2) the sum of
the consideration received from the transfer and any cumulative gain or loss that has been
recognized in other comprehensive income is recognized in profit or loss. Where the transferred
assets are non-trading equity instrument investments designated as at FVTOCI cumulative gains
or losses previously recognized in other comprehensive income are transferred out and included in
retained earnings.- 32 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized
and the part that is derecognized based on the respective fair value of those parts at the date of
transfer. The difference between (1) the carrying amount allocated to the part derecognized on the
date of derecognition; and (2) the sum of the consideration received for the part derecognized and
any cumulative gain or loss allocated to the part derecognized which has been previously
recognized in other comprehensive income is recognized in profit or loss. Where the transferred
assets are non-trading equity instrument investments designated as at FVTOCI cumulative gains
or losses previously recognized in other comprehensive income are transferred out and included in
retained earnings.For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria the
Group continues to recognize the transferred financial asset in its entirety. The consideration
received from transfer of assets is recognized as a 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss.For a financial liability designated as at FVTPL the amount of changes in fair value of the
financial liability that are attributable to changes in the credit risk of that liability shall be
presented in other comprehensive income while other changes in fair value are included in profit
or loss for the current period. Upon the derecognition of such financial liability the accumulated
amount of changes in fair value that are attributable to changes in the credit risk of that liability
which was recognized in other comprehensive income is transferred to retained earnings. Any
dividend or interest expense on the financial liabilities is recognized in profit or loss. If the
accounting treatment for the impact of the change in credit risk of such financial liability in the
above ways would create or enlarge an accounting mismatch in profit or loss the Group shall
present all gains or losses on that liability (including the effects of changes in the credit risk of
that liability) in profit or loss for the period.For financial liabilities arising from contingent consideration recognized by the Group as the
acquirer in the business combination not involving enterprises under common control the Group
measures such financial liabilities at fair value through profit or loss and includes the changes in
the financial liabilities in profit or loss for the period.- 34 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 amortized cost with gain or loss arising from derecognition or
amortization recognized in profit or loss.If the modification or renegotiation for the contract by the Group and its counterparties does not
result in derecognition of a financial liability subsequently measured at amortized cost but the
changes in contractual cash flows the Group will recalculate the carrying amount of the financial
liability with relevant gain or loss recognized in profit or loss. The Group will determine the
carrying amount of the financial liability based on the present value of renegotiated or modified
contractual cash flows discounted at the original effective interest rate of the financial liability.For all costs or expenses arising from modification or renegotiation of the contract the Group will
adjust the modified carrying amount of the financial liability and make amortization during the
remaining term of the modified financial liability.
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 recognized less cumulative amortization amount determined
based on the revenue standards.- 35 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to
replace the original financial liability with a new financial liability with substantially different
terms is accounted for as an extinguishment of the original financial liability and the recognition
of a new financial liability.When the Group derecognizes a financial liability or a part of it it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability)
derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) in profit or loss.
11.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments issued (including refinanced) repurchased
sold and cancelled by the Group are recognized as changes in equity. 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 recognizes 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.5 Derivatives and embedded derivatives
Derivatives include forward exchange contracts currency swaps interest rate swaps and foreign
exchange options etc. Derivatives are initially measured at fair value at the date when the
derivative contracts are entered into and are subsequently measured at fair value.Derivatives embedded in hybrid contracts with a financial asset host are not separated by the
Group. The hybrid contract shall apply the relevant accounting standards regarding the
classification of financial assets as a whole.Derivatives embedded in hybrid contracts with hosts that are not financial assets are separated and
treated as separate derivatives by the Group when they meet the following conditions:
(1) the economic characteristics and risks of the embedded derivative are not closely related to
those of the host contract;
(2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative;
(3) the hybrid contracts are not measured at fair value through profit or loss.
For the embedded derivative separated from the host contracts the Group accounts for the host
contracts in the hybrid contracts with applicable accounting standards. When the embedded
derivatives whose fair value cannot be measured reliably by the Group according to the terms and
conditions of the embedded derivatives the fair value of such derivatives are measured at the
difference between the fair value of the hybrid contracts and the fair value of the host contracts.By adopting the above method if the embedded derivative cannot be measured on a stand-alone
basis at the time when it is acquired or at subsequent balance sheet dates the hybrid instrument is
designated as financial instruments at fair value through profit or loss as a whole.
11.6 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial
assets and financial liabilities and intends either to settle on a net basis or to realize the financial
asset and settle the financial liability simultaneously a financial asset and a financial liability shall
be offset and the net amount is presented in the balance sheet. Except for the above circumstances
financial assets and financial liabilities shall be presented separately in the balance sheet and shall
not be offset.
11.7 Compound instruments
For convertible bonds issued by the Group that contain both liabilities and conversion option that
may convert the liabilities to its own equity instrument upon initial recognition the bonds are
split into liabilities and conversion option which are separately recognized. Therein the
conversion option that exchanges a fixed amount of cash or other financial assets for a fixed
amount of equity instruments is accounted for as an equity instrument.- 37 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.7 Compound instruments - continued
Upon initial recognition the fair value of liability portion is determined based on the prevailing
market price of the bonds containing no conversion option. The overall issue price of the
convertible bonds net of the fair value of the liability portion is considered as the value of the
conversion option that enables the bonds holder to convert the bonds to equity instruments and is
included in other equity instruments.The liability portion of the convertible bonds is subsequently measured at amortized cost using
effective interest method; the value of the conversion option classified as equity instrument is
remained in equity instrument. The expiry or conversion of convertible bonds will not result in
loss or gain.The transaction costs incurred for issuance of the convertible bonds are allocated between the
liability portion and equity instrument portion in proportion to their respective fair values. The
transaction cost relating to the equity instrument portion is directly included in equity instrument;
while the transaction cost relating to the liability portion is included in the carrying amount of the
liability and amortized over the lifetime of the convertible bonds using effective interest method.
11.8 Reclassification of financial instruments
When the Group changes the business model to manage the financial assets the financial assets
affected will be reclassified and no financial liabilities will be reclassified.The financial assets are reclassified by the Group and are accounted for prospectively since the
date of reclassification (i.e. the first date of the initial reporting period after the business model of
which the financial assets are reclassified by the enterprise is changed).Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
profit or loss 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 recognized in profit or loss for the period.Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
other comprehensive income (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 recognized in other comprehensive income.Where a financial asset at FVTOCI is reclassified as a financial asset at amortized cost by the
Group the accumulated gains or losses previously recognized in other comprehensive income are
transferred out and the fair value at the date of reclassification is adjusted. The adjusted fair value
is determined as the new carrying amount as if the financial asset has been always measured at
amortized cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.- 38 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.8 Reclassification of financial instruments - continued
Where a financial asset at FVTOCI is reclassified as a financial asset at FVTPL by the Group
such financial asset continues to be measured at fair value. At the same time the accumulated
gains or losses previously recognized in other comprehensive income are transferred to profit or
loss for the period.Where a financial asset at FVTPL is reclassified as a financial asset at amortized cost by the
Group the fair value at the date of reclassification is determined as the new 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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
rating Basis for determining portfolio
Expected average
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 historicalexperience but they can make repayments. 0.10-0.30
C The evidence indicates that the overdue credit risks of the customers aresignificantly 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 financialdifficulties 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 amortization 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
13. Inventories - continued
13.1 Categories of inventories measurement method of cost of inventories inventory count
system amortization 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.
13.1.3 Inventory count system
The perpetual inventory system is perpetual inventory system.
13.1.4 Amortization method for low cost and low-value consumables items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized as initial investment
cost of long-term equity investment at the date of combination. The difference between initial
investment cost of long-term equity investment and cash paid non-cash assets transferred and
carrying amount of liabilities assumed is adjusted in capital reserve. If the balance of capital
reserve is not sufficient to absorb the difference 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss when they are incurred.The long-term equity investment acquired otherwise than through a business combination is
initially measured at its cost. When the entity is able to exercise significant influence or joint
control (but not control) over an investee due to additional investment the cost of long-term
equity investments is the sum of the fair value of previously-held equity investments determined
in accordance with Accounting Standards for Business Enterprises No.22 -- Financial Instruments:
Recognition and Measurement (ASBE No. 22) and the additional investment cost.
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 recognized 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 recognized 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognizes its share of the net profit or loss and other
comprehensive income of the investee for the period as investment income and other
comprehensive income for the period. Meanwhile the carrying amount of long-term equity
investment is adjusted; the carrying amount of long-term equity investment is decreased in
accordance with its share of the investee's declared profit or cash dividends; other changes in
owners' equity of the investee other than net profit or loss other comprehensive incomed and
profit distribution are correspondingly adjusted to the carrying amount of the long-term equity
investment and recognized in capital reserve. The Group recognizes its share of the investee's net
profit or loss based on the fair value of the investee's individual identifiable assets etc. at the
acquisition date after making adjustments. When the investee's accounting policies and
accounting period are inconsistent with those of the Group the Group recognizes investment
income and other comprehensive income after making appropriate adjustments to conform to the
Group's accounting policies and accounting period. However unrealized gains or losses resulting
from the Group's transactions with its associates and joint ventures 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 recognized. However unrealized losses resulting
from the Group's transactions with its associates and joint ventures which represent impairment
losses on the transferred assets are not eliminated.When recognizing 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 recognized according to the obligation
expected and recorded in the investment loss for the period. Where net profits are subsequently
made by the investee the Group resumes recognizing its share of those profits only after its share
of the profits exceeds the share of losses previously not recognized.- 44 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss for the period. For
long-term equity investments accounted for using the equity method if the remaining interest
after disposal is still accounted for using the equity method other comprehensive income
previously recognized using the equity method is accounted for on the same basis as would have
been required if the investee had directly disposed of related assets or liabilities and transferred to
profit or loss for the period on a pro rata basis; owners' equity recognized due to other changes in
owners' equity of the investee (other than net profit or loss other comprehensive income and
profit distribution) is transferred to profit or loss for the period on a pro rata basis. For long-term
equity investments accounted for using the cost method if the remaining interest after disposal is
still accounted for using the cost method other comprehensive income previously recognized
using the equity method or in accordance with the standards for the recognition and measurement
of financial instruments before obtaining the control over the investee is accounted for on the
same basis as would have been required if the investee had directly disposed of related assets or
liabilities and transferred to profit or loss for the period on a pro rata basis; other changes in
owners' equity in the investee's net assets recognized under the equity method (other than net
profit or loss other comprehensive income and profit distribution) is transferred to profit or loss
for the period on a pro rata basis.Where the Group loses control over the investee due to disposal of part of shares and in preparing
the separate financial statements remaining shares after disposal can have joint control or
significant influence over the investee the equity method shall be adopted to adjust the remaining
shares as they are accounted for under equity method since the acquisition date. If remaining
shares after disposal cannot have joint control or significant influence over the investee they are
accounted for in accordance with the standards for recognition and measurement of financial
instruments and the difference between fair value on date of losing control and carrying amount
is recognized in profit or loss for the period. Other comprehensive income recognized using the
equity method or in accordance with the standards for the recognition and measurement of
financial instruments before losing control over the investee is accounted for on the same basis as
would have been required if the investee had directly disposed of related assets or liabilities when
the control over the investee is lost; other changes in owners' equity in the investee's net assets
recognized under the equity method (other than net profit or loss other comprehensive income
and profit distribution) is transferred to profit or loss for the period. 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or
loss for the period. Other comprehensive income previously recognized under the equity method
is accounted for on the same basis as would have been required if the investee had directly
disposed of related assets or liabilities when the equity method is not adopted and other changes
in owners' equity other than net profit or loss other comprehensive income and profit distribution
are transferred to investment income for the period when the equity method is not adopted.The Group disposes of its equity investment in subsidiaries through multiple transactions step by
step until it loses control over the subsidiaries. If these transactions belong to "package deal" all
transactions are deemed as one transaction on disposal of equity investment in subsidiaries and
the difference between the amount of disposal and carrying amount of long-term equity
investment is recognized as other comprehensive income 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 recognized
in profit or loss for the period in which they are incurred.The Group uses the cost model for subsequent measurement of investment property and the
investment properties are depreciated over their useful lives using the straight-line method. The
depreciation life estimated residual value rate and annual depreciation rate of each category of
investment properties are as follows:
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 derecognized 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 derecognized.- 46 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
15. Investment properties - continued
When an investment property is sold transferred retired or damaged the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
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 recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.Fixed assets are initially measured at cost. Upon being restructured into a stock company the
fixed assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it
is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the
replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss for
the period in which they are incurred.A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The depreciation life estimated
net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
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 derecognized. When a fixed asset is sold transferred retired
or damaged the amount of any proceeds on disposal of the asset net of the carrying amount and
related taxes is recognized in profit or loss for the period.The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end and accounts for any change
as a change in accounting estimates.- 47 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
18. Intangible assets
18.1 Useful life and the basis for determination estimates amortization method or review
procedures
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 recognized based on
the valuation amounts confirmed by the state-owned assets administration department. Except for
terminal operating rights when an intangible asset with a finite useful life is available for use its
original cost minus the expected net residual value and the accumulated amount of impairment
provision is amortized over its estimated useful life by using straight-line method. The terminal
operating rights under the output method are amortized over periods according to the ratio of the
estimated minimum guaranteed throughput to the estimated minimum guaranteed total throughput
during the operation period. When the estimated minimum guaranteed throughput cannot be
measured reliably the straight-line method will be used for amortization. An intangible asset with
indefinite useful life will not be amortized.The amortization method useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortization method Useful life (year) and recognition Residual value (%)
From the date of the land transfer it
Land use rights Straight-line method is amortized using the straight-line -
method over the land transfer period
Output method - it is amortized
over periods according to the ratio
of the estimated minimum
guaranteed throughput to the
estimated minimum guaranteed
Terminal operating Output/Straight-line method total throughput; straight-lineright method - it is amortized using the -
straight-line method over the
shortest of the estimated useful life
the beneficial period specified in the
contract and the effective life as
defined by law
It is amortized using the straight-
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 amortization
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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
18. Intangible assets - continued
18.2 Scope of R&D expenditure and method for accounting treatment
Expenditure during the research phase is recognized in profit or loss for the period in which it is
incurred.Expenditure during the development phase that meets all of the following conditions at the same
time is recognized as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognized in profit or loss for the period:
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits including the evidence of the existence of a market for the output of the
intangible asset or the intangible asset itself or if it is to be used internally the usefulness
of the intangible asset.
(4) the availability of adequate technical financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.If the expenditures cannot be distinguished between the research phase and development phase
the Group recognizes all of them in profit or loss for the year. The costs of intangible assets
generated by the internal research only include the total expenditure incurred for the period from
the time point of capitalization to the time point when the intangible assets are ready for intended
use. For the identical intangible asset the expenditures recorded as expenses before they qualify
for capitalization during the development process are not adjusted.The Group classifies the expenditures on an internal research and development project into
expenditures in the research phase and expenditures in the development phase. The scope of R&D
expenditures refer to those directly related to the R&D activities including wages salaries and
welfare expenses of personnel directly engaged in R&D activities materials directly consumed in
R&D activities depreciation expenses for instruments and equipment used in R&D activities
travel transportation and communication expenses required for research and experimental
development etc. Technical feasibility and economic viability studies are adopted as specific
criteria for classifying the research and development phases once such studies have been
evaluated and approved.- 50 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 amortized 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 recognized in profit or loss.Once the impairment losses of above-mentioned assets is recognized 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 recognized 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 recognized 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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
recognized 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 recognized 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 recognized as a provision is the best estimate of the consideration required to settle
the present obligation at the balance sheet date taking into account factors pertaining to a
contingency such as the risks uncertainties and time value of money. Where the effect of the time
value of money is material the amount of the provision is determined by discounting the related
future cash outflows.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 recognized as assets
when it is basically determined that it can be received and the recognized compensation amount
will not exceed the book value of the estimated liabilities.
22. Employee benefits
22.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make full
payments within 12 months after the annual reporting period during which relevant services are
provided by the employees except the post-employment benefits and termination benefits.Specifically the short-term benefits include: employee salaries bonuses allowances and subsidies
employee benefits social insurance contributions such as the medical insurance and the work
injury insurance housing funds trade union funds and employee education funds short-term paid
absence short-term profit sharing plan non-monetary welfare and other short-term benefits.Short-term employee benefits payable are recognized as liabilities with a corresponding charge to
profit or loss for the period or in the costs of relevant assets 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 recognized in profit or loss for the
- 52 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
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.- 53 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.1 Short-term employee benefits - continued
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance work injury insurance and maternity insurance etc. and
payments of housing funds as well as union running costs and employee education costs provided
in accordance with relevant requirements are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities
with a corresponding charge to profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
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 recognized 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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
recognized in profit or loss for the period or costs of related assets. Remeasurement of the net
defined benefit liabilities (assets) (including actuarial gains and losses the return on planned
assets excluding amounts included in net interest on net defined benefit liabilities (assets) and
any changes in the effect of the asset ceiling excluding amounts included in net interest on net
defined benefit liabilities (assets)) are recognized in other comprehensive income.The deficit or surplus resulting from the present value of the defined benefit plan obligations less
the fair value of the defined benefit plan assets is recognized as a net defined benefit plan liability
or net asset.
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 recognized for termination benefits with a
corresponding charge to profit or loss for the period at the earlier of: (1) when the Group cannot
unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group 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 recognized and measured
in accordance with the relevant provisions of the defined benefit plans. At the end of the reporting
period employee compensation costs arising from other long-term employee benefits are
recognized as three components: service cost net interest on net liability or net asset for other
long-term employee benefits and changes resulting from the remeasurement of the net liability or
net asset for other long-term employee benefits. The total net amount of these items is included in
profit or loss for the period or in the costs of related assets.- 55 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized as liabilities at the present
value and included in profit or loss for the period when relevant recognition requirements of the
internal retirement benefits are met.
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 recognized as related costs or expenses on a straight-line basis over the vesting period
based on the best estimate of the number of equity instruments expected to vest/ as related costs or
expenses at the grant date if the equity instruments could be vested immediately with a
corresponding increase in capital reserve.
24. Bonds payable
The Group's bonds payable are measured at fair value when initially recognized and relevant
transaction costs are included in the initially recognized amount. It is subsequently measured at
amortized 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 amortized 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 PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognizes revenue based on the transaction price allocated to the performance
obligation when the Group satisfies a performance obligation in the contract namely when the
customer obtains control over relevant goods or services. A performance obligation is a
commitment that the Group transfers a distinct goods or service to a customer in the contract. 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 recognized by the Group does not exceed the amount of accumulated recognized 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 recognizes revenue during a period of
time according to the progress of performance if one of the following conditions is met: (i) the
customer obtains and consumes economic benefits at the same time of the Group's performance;
(ii) the customer is able to control goods or services in progress during the Group's performance;
(iii) goods or services generated during the Group's performance have irreplaceable utilization
and the Group is entitled to collect amounts of cumulative performance part which have been
done up to now. Otherwise revenue is recognized at a point in time when the customer obtains
control over the relevant goods or services.- 57 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized based on the amount of cost that is expected to be
compensated based on the cost already incurred until the progress of performance is reasonably
determined.Contract assets 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 recognized revenue which is unlikely to be
significantly reversed when relevant uncertainty is eliminated. At each balance sheet date the
Group re-estimates the amount of variable consideration which should be included in transaction
price.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.- 58 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by
type of business - continued
In case of the existence of a significant financing component in the contract the Group shall
determine the transaction price on the assumption that the customer has paid the amount payable
by cash when obtaining the control over the goods or services. Differences between transaction
price and contract consideration are amortized using effective interest method during the contract
life. At the inception of the contract if the period between when the Group transfers a promised
goods or service to a customer and when the customer pays for that goods or service will be one
year or less the Group would not consider the significant component in the contract.The Group assesses whether it controls each specified goods or service before that goods or
service is transferred to the customer to determine whether the Group is a principal or an agent. If
the Group controls the specified good or service before that good or service is transferred to a
customer the Group is a principal and recognizes revenue in the gross amount of consideration
received or receivable. Otherwise the Group is an agent and recognizes revenue in the amount of
any fee or commission to which it expects to be entitled. The fee or commission is the net amount
of consideration that the Group retains after paying the other party the consideration received in
exchange for the goods or services to be provided by that party or is determined in accordance
with the established commission amount or percentage etc.Where the Group receives receipts in advance from a customer for sales of goods or rendering of
services the amount is first recognized as a liability and then transferred to revenue when the
related performance obligation has been satisfied. When the Group's 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 recognizes the said amounts as revenue on a pro-rata basis in
accordance with the pattern of exercise of the customer's contractual rights if the Group expects
to be entitled to the amounts relating to the contractual rights waived by the customer; otherwise
the Group reverses the related balance of the said liabilities to revenue only when it is highly
unlikely that the customer will require performance of the remaining performance obligations.For port business the revenue from the handling of containers and bulk cargos is recognized over
time based on the progress of completed services and the revenue from the storage of containers
and bulk cargos is recognized on a straight-line basis over the period of storage.For bonded logistics business the revenue is recognized based on the progress of services
rendered where the progress of completed services is determined based on the proportion of days
on services provided to the estimated total number of service days. As at the balance sheet date
the Group has re-estimated the progress of completed bonded logistics service so that it reflects
the changes in performance status.- 59 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
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 recognized as an asset. If the amortization period
of such asset is less than one year it is recognized in profit or loss for the period when incurred.Other expenses incurred for obtaining the contract is included in profit or loss for the period when
incurred except for those explicitly assumed by the customer.
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 recognizes an asset only if those costs meet all of the following
criteria: (1) the costs relate directly to a contract or to an anticipated contract that the Group can
specifically identify; (2) the costs enhance resources of the Group that will be used in satisfying
performance obligations in the future; and (3) the costs are expected to be recovered. The asset
mentioned above shall be amortized on a basis that is consistent with the revenue recognition of
the goods or services to which the asset relates and recognized in profit or loss for the period.
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 recognized 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 recognized immediately in profit
or loss for the period.- 60 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
27. Government grants - continued
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 recognized 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 recognized 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 recognized as deferred income and
recognized in profit or loss for the period in which the related costs or losses are recognized; if the
grant is a compensation for related expenses or losses already incurred the grant is recognized
immediately in profit or loss.A government grant related to the Group's daily activities is recognized in other income; a
government grant not related to the Group's daily activities is recognized in non-operating income.
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 of borrowing
costs is suspended until the acquisition construction or production of the asset is resumed. Other
borrowing costs are recognized as an expense in the period in which they are incurred.- 61 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
28. Borrowing costs - continued
Where funds are borrowed under a specific-purpose borrowing the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds. Where funds are borrowed under
general-purpose borrowings the Group determines the amount of interest to be capitalized on
such borrowings by applying a capitalization rate to the weighted average of the excess of
cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose
borrowings. During the capitalization period exchange differences related to a specific-purpose
borrowing denominated in foreign currency are all capitalized. Exchange differences in
connection with general-purpose borrowings are recognized in profit or loss for the period in
which they are incurred.
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 recognized as assets or
liabilities and their tax base that can be determined according to tax laws deferred tax assets and
liabilities are recognized using the balance sheet liability method.Deferred income tax are generally recognized for all taxable temporary differences. Deferred tax
assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.However for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction which is not a business
combination that affects neither the accounting profit nor taxable profits (or deductible losses) and
will not result in taxable temporary differences and deductible temporary differences in equivalent
amounts at the time of transaction no deferred tax asset or liability is recognized.For deductible losses and tax credits that can be carried forward deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which the deductible losses and tax credits can be utilized.- 62 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
29. Deferred tax assets/ deferred tax liabilities - continued
29.2 Deferred tax assets and deferred tax liabilities - continued
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries associates and joint ventures except where the Group is able to
control the timing of the reversal of the temporary differences and it is probable that the
temporary differences will not be reversed in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with investments in subsidiaries associates and
joint ventures are recognized to the extent that it is probable that future taxable profits will be
available against which the deductible temporary differences can be utilized and they are expected
to be reversed in the foreseeable future.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates
applicable in the period in which the asset is realized or the liability is settled according to tax
laws.Current and deferred tax expenses or income are recognized in profit or loss for the period except
when they arise from transactions or events that are directly recognized in other comprehensive
income or shareholders' equity in which case they are recognized in other comprehensive income
or shareholders' equity and when they arise from business combinations in which case they
adjust the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the
benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it
becomes probable that sufficient taxable profits will be available.
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.- 63 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss for the
period except that (1) exchange differences related to a specific-purpose borrowing denominated
in foreign currency that qualify for capitalization are capitalized as part of the cost of the
qualifying asset during the capitalization period; (2) exchange differences related to hedging
instruments for the purpose of hedging against foreign currency risks are accounted for using
hedge accounting; (3) exchange differences arising from changes in the carrying amounts (other
than the amortized cost) of monetary items at fair value through other comprehensive income are
recognized as other comprehensive income.When the consolidated financial statements include foreign operation(s) if there is foreign
currency monetary item constituting a net investment in a foreign operation exchange differences
arising from changes in exchange rates are recognized as "exchange differences arising from
translation of financial statements denominated in foreign currencies" in other comprehensive
income and in profit or loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions. Foreign currency
non-monetary items measured at fair value are re-translated at the spot exchange rate on the date
when the fair value is determined. Difference between the re-translated functional currency
amount and the original functional currency amount is treated as changes in fair value (including
changes in exchange rate) and is recognized in profit or loss or as other comprehensive income.- 64 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized as
other comprehensive income and included in shareholders' equity.Cash flows arising from a transaction in foreign currency and the cash flows of a foreign
subsidiary are translated at average exchange rate during the accounting period of consolidated
financial statements. The effect of exchange rate changes on cash and cash equivalents is regarded
as a reconciling item and presented separately in the cash flow statement as "effect of exchange
rate changes on cash and cash equivalents".The amount at the end of last 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 recognized in profit or loss. For partial disposals of equity interests in foreign
operations which are associates or joint ventures the proportionate share of the accumulated
exchange differences arising from translation difference of financial statements denominated in
foreign currencies is reclassified to profit or loss.- 65 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognizes the right-of-use
assets of the leases at the commencement date. The commencement date of the lease is the date
from which the lessor provides the leased assets to make them available for use by the Group.Right-of-use assets are initially measured at cost. The cost includes:
the amount of the initial measurement of the lease liabilities.any lease payments made at or before the commencement date less any lease incentives.any initial direct costs incurred by the Group.an estimate of costs to be incurred by the Group in dismantling and removing the underlying
asset restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease.Right-of-use assets are depreciated by the Group in accordance with the ASBE No.4 -- Fixed
Assets. If the Group is reasonably certain that the lease will transfer ownership of the underlying
asset to the Group by the end of the lease term the right-of-use assets are depreciated from the
commencement date to the end of the useful life of the underlying asset. Otherwise the right-of-
use assets are depreciated from the commencement date to the earlier of the end of the useful life
of the right-of-use assets or the end of the lease term.- 66 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized in profit or loss or in the cost of relevant assets in the period
of those payments.After the commencement date interest expenses on the lease liabilities in each period during the
lease term is calculated by a constant periodic rate of interest and included in profit or loss or
charged to cost of related assets.After the commencement date the Group shall remeasure the lease liabilities and make
corresponding adjustments to the related right-of-use assets in the following circumstances. If the
carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the
measurement of the lease liabilities the Group shall recognize the difference in profit or loss:
where there is a change in the lease term or in the assessment of an option to purchase the
underlying asset the Group remeasures the lease liabilities on the basis of the revised 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 a revised discount
rate is applied to calculate the present value.- 67 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognize right-of-use assets or lease liabilities for short-term leases and
leases of low-value assets i.e. port and terminal facilities buildings machinery and equipment
furniture fixture and other equipment motor vehicles and cargo ships and others. A short-term
lease is a lease that at the commencement date has a lease term of 12 months or less and does not
contain a call option. A lease of low-value assets is a lease that the value of the underlying asset
is lower when it is new. For short-term leases and leases of low-value assets the Group
recognizes the lease payments in profit or loss or in the cost of related assets on a straight-line
basis over each period within the lease term.
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 recognized in profit or loss. For re-
measurement of lease liabilities due to other lease modifications a corresponding adjustment is
made to the carrying amount of the right-of-use assets.- 68 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as lessee - continued
31.1.6 Sale and leaseback transactions
The Group as seller-lessee
The Group applies the requirements of Revenue Standard to determine whether the transfer of an
asset is accounted for as a sale of that asset. If the transfer of an asset does not constitute a sale
the Group shall continue to recognize the transferred assets recognize a financial liability equal to
the transfer proceeds and accounts for such financial liability in accordance with the Accounting
Standards for Business Enterprises No. 22 -- Financial Instruments: Recognition and
Measurement. If the transfer of an asset is a sale the Group shall measure the right-of-use assets
arising from the leaseback at the proportion of the previous carrying amount of the asset that
relates to the right of use and recognize any gain or loss for rights transferred to the lessor only.
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.
31.2.2.1 The Group as lessor under operating leases
The Group recognizes lease receipts from operating leases as rental income using a straight-line
method over the respective periods of the lease term. The Group's initial direct costs incurred in
connection with operating leases are capitalized when the costs incurred and are allocated to
profit or loss for the period over the lease term on the same basis as the recognition of rental
income.Variable lease receipts acquired by the Group in connection with operating leases that are not
included in the lease receipts are recognized in profit or loss for the period when they are actually
incurred.- 69 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor - continued
31.2.2 Classification of leases - continued
31.2.2.2 The Group as lessor under finance leases
At the commencement date the Group recognizes a finance lease receivable at the amount equal
to the net lease investment with assets under finance lease derecognized. The net lease investment
is the sum of any unguaranteed residual value and the present value of the lease receipts over the
lease term discounted at the interest rate implicit in lease.The lease receivable comprises the following payments collected by the Group from the lessee for
the transfer of the right to use the underlying assets during the lease term:
fixed payments (including in-substance fixed payments) paid by the lessee less any lease
incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option provided that it is reasonably determined that the
lessee will exercise the option.payments for terminating the lease provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
residual value of guarantee provided to the Group by the lessee a party related to the lessee
and an independent third party with the financial ability to fulfil the guarantee obligations.Variable lease receipts not included in the net lease investment are recognized in profit or loss
when they are actually incurred.Interest income for each period over the lease term is calculated and recognized by the Group at a
fixed periodic rate.
31.2.3 Subleases
As the lessor of a sublease the Group accounts for the original lease contract and the sublease
contract on a separate basis. The Group classifies the subleases based on the right-of-use assets
generating from the original lease rather than the underlying assets of the original lease.- 70 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor - continued
31.2.4 Lease modifications
The Group accounts for a modification to an operating lease as a new lease from the effective date
of the modification considering any lease advances or receivables relating to the original lease as
the lease receipts for the new lease.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.
31.2.5 Sale and leaseback transactions
The Group as the buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale the Group
does not recognize the transferred asset but a financial asset at an amount equal to the transfer
proceeds and accounts for such financial asset under the Accounting Standards for Business
Enterprises No. 22 -- Financial Instruments: Recognition and Measurement. If the transfer of an
asset constitutes a sale the Group accounts for the purchase of the asset in accordance with other
applicable Accounting Standards for Business Enterprises and accounts for the lease of the asset.- 71 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING 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 recognized 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 recognized 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
recognized as the cost at initial recognition; For the asset given up at derecognition the
difference between the fair value and the carrying amount is recognized in profit or loss for the
current period. When there is clear evidence indicating that the fair value of the received asset is
more reliable for the asset received the fair value of the asset received and related taxes payable
are recognized as the cost at initial recognition; For the asset given up at derecognition the
difference between the fair value of the asset received and the carrying amount of the asset given
up is recognized in profit or loss for the current period.When the non-monetary transactions fail to meet criteria to be measured at fair value the
transactions are measured at carrying amounts. For the asset received the carrying amount of the
asset given up and relevant taxes payable are recognized as the cost of at initial recognition. For
the asset given up at derecognition no profit or loss is recognized.- 72 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 recognized in the
current period; changes which not only affect the current but the future periods should be
recognized in the current and future periods.
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 30 June 2025 is 6233179553.36. 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 recognized. If the profits to be actually distributed in future years are more or less
than those expected corresponding deferred tax liabilities will be recognized or reversed in profit
or loss for the period at the earlier of the date on which the profit distribution plan is changed and
the date on which the profit distribution is declared.Deferred tax assets are recognized based on the deductible temporary differences and the
corresponding tax rate to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
future years are more or less than that expected corresponding deferred tax assets will be
recognized or reversed in profit or loss for the period in which they are actually incurred.- 73 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 amortization or write off or
eliminate the technically obsolete fixed assets or intangible assets.(VI) CHANGES IN SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING
ESTIMATES
There are no significant accounting policies or accounting changes for the period.- 74 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 "VAT") service industriesIncome 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 5%-7%
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 1-8 per square meter
Amount of pollution equivalents of the
Environmental protection tax taxable air pollutants converted based on the RMB 1.2- RMB 1.8 per
quantity of pollutions discharged pollution equivalent
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.- 75 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
1. Major taxes and tax rates - continued
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 to the local government.
2. Tax preference and approval documents
Certain subsidiaries of the Group in China are recognized as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. Some
of Group's some 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.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 Tax Service of Shenzhen Qianhai Shenzhen-Hong Kong Modern Service
Industry Cooperation Zone State Taxation Administration (formerly "Shekou Tax Service
Shenzhen Tax Service State Taxation Administration") 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.- 76 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item 30/06/2025 31/12/2024Original Currency Exchange rate RMB Original Currency Exchange rate RMB
Cash —— —— 179448.28 —— —— 457486.90
Including: RMB - 1.0000 - 300.00 1.0000 300.00
USD 1377.63 7.1668 9873.22 1327.58 7.1884 9543.18
HKD 3954.10 0.9130 3610.02 6354.10 0.9260 5884.15
Others 117839980.72 - 165965.04 161212970.72 - 441759.57
Bank deposits —— —— 11972224908.99 —— —— 11769350938.86
Including: RMB 7578130790.74 1.0000 7578130790.74 7922930866.84 1.0000 7922930866.84
USD 512333387.47 7.1668 3671790921.74 328306260.16 7.1884 2359996720.94
HKD 243994307.90 0.9130 222761923.21 764174676.63 0.9260 707656317.54
EUR 5091028.13 8.3224 42369572.50 3955241.68 7.5257 29765962.32
GBP 60694.09 9.7545 592040.50 68592.09 9.0765 622576.10
AUD 2250221.56 4.6510 10465780.48 4590999.43 4.5070 20691634.43
Others 376177501442.89 - 446113879.82 340388882836.85 - 727686860.69
Other cash and bank balances —— —— 119344416.10 —— —— 114600721.02
Including: RMB 79590451.17 1.0000 79590451.17 74726938.79 1.0000 74726938.79
HKD 283.50 0.9130 258.83 283.50 0.9260 262.53
Others 1622193641.17 - 39753706.10 1622193641.17 - 39873519.70
Cash deposited in the finance
company 2904541481.79 1.0000 2904541481.79 4745991554.35 1.0000 4745991554.35
Total —— —— 14996290255.16 —— —— 16630400701.13
Including: Total amount of
funds deposited overseas 6508541644.94 5449122430.53
(1) The interest receivable at the end of the period amounted to RMB 33585496.90.
(2) Cash deposited in the finance company included the interest receivable amounting to
RMB 8141591.81.
(3) Restricted use of cash at bank and on hand at the end of the period.
Item 30/06/2025 31/12/2024 Reasons for restricted use
Interest receivable 41727088.71 70691916.54 Not actually received
Performance bond 40440906.10 41064199.70 Not available for withdrawal at any time
Litigation freezing funds 9351403.60 1826085.98 Not available for withdrawal at any time
Guarantee deposit 200000.00 200000.00 Not available for withdrawal at any time
ETC card frozen funds 12750.00 12750.00 Not available for withdrawal at any time
Bill deposit - 1536194.00 Not available for withdrawal at any time
Total 91732148.41 115331146.22
- 77 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
2. Financial assets held for trading
Item 30/06/2025 31/12/2024
Financial assets classified as at FVTPL 4833561128.78 5685135472.01
Including: Structured deposits 4833561128.78 5685135472.01
Total 4833561128.78 5685135472.01
3. Bills receivable
(1) Category of bills receivable
Category 30/06/2025 31/12/2024
Bank acceptance 181745578.07 263127883.63
Commercial acceptance - 7000000.00
Total 181745578.07 270127883.63
Note: For the period from 1 January to 30 June 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 30 June 2025 the Group has no bills receivable pledged.
(3) As at 30 June 2025 bills receivable endorsed or discounted by the Group and not yet due
on the balance sheet date.Amount Unrecognized
Item derecognized at the amount at the end of
end of the period the period
Bank acceptance 105963512.85 5183481.26
(4) As at 30 June 2025 the Group has no bills transferred to accounts receivable due to the
drawer's failure to perform.
(5) For the period from 1 January to 30 June 2025 there were no notes receivable written off.
- 78 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable
(1) Overall situation of accounts receivable
Category 30/06/2025 31/12/2024
Accounts receivable 2326006308.48 1282371828.87
Less: Provision for bad debts 84824053.47 88963445.09
Total 2241182255.01 1193408383.78
(2) Aging analysis of accounts receivable
30/06/202531/12/2024
Aging Book value Provision forProportion (%) bad debts Book value
Provision for
Proportion (%) bad debts
Within 1 year (Including
1 year) 2229699788.50 95.86 3139736.92 1184171645.45 92.34 3052874.64
1-2 years (Including 2
years) 20811914.16 0.89 9706947.21 25773736.31 2.01 15217006.15
2-3 years (Including 3
years) 19283838.14 0.83 16074997.36 18788751.53 1.47 17375034.32
More than 3 years 56210767.68 2.42 55902371.98 53637695.58 4.18 53318529.98
Total 2326006308.48 100.00 84824053.47 1282371828.87 100.00 88963445.09
- 79 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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
Book value Provision for bad debts
Credit Expected credit Aging Aging
rating loss rate (%) Total Total Carrying amount Reason for provisionWithin 1 year 1-2 years 2-3 years More than 3 Within 1 More than 3years year 1-2 years 2-3 years years
Accrued according to the
A 0.00-0.10 1565532354.80 5493143.72 114795.64 113842.13 1571254136.29 146907.37 385135.68 29486.38 113842.13 675371.56 1570578764.73 expected loss rate of each
rating
Accrued according to the
B 0.10-0.30 567560749.97 4036096.70 1247066.84 297562.97 573141476.48 41659.77 186340.72 186935.27 292162.97 707098.73 572434377.75 expected loss rate of each
rating
Accrued according to the
C 0.30-50.00 91913836.68 2764467.38 109670.65 574343.83 95362318.54 397552.33 1227962.76 27935.29 574343.83 2227794.21 93134524.33 expected loss rate of each
rating
D 50.00-100.00 4692847.05 8518206.36 17812305.01 55225018.75 86248377.17 2553617.45 7907508.05 15830640.42 54922023.05 81213788.97 5034588.20 Low probability of recovery
Total 2229699788.50 20811914.16 19283838.14 56210767.68 2326006308.48 3139736.92 9706947.21 16074997.36 55902371.98 84824053.47 2241182255.01
Including: Provision for bad debts at the end of the period assessed on an individual basis:
30 June 2025
Name Book value Provision for bad debts Expected credit loss Reason for provisionrate (%)
Client 1 24908308.44 24908308.44 100.00 Low probability of recovery
Client 2 14965689.98 14965689.98 100.00 Low probability of recovery
Client 3 6215522.19 6215522.19 100.00 Low probability of recovery
Client 4 5700298.86 5700298.86 100.00 Low probability of recovery
Client 5 4828983.86 4828983.86 100.00 Low probability of recovery
Others 29629573.84 24594985.64 83.01 ——
Total 86248377.17 81213788.97 ——
- 80 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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) Measurement of expected credit loss at an amount equivalent to the lifetime expected
credit loss
Lifetime expected Lifetime expected
Item credit loss (not credit loss (credit- Total
credit-impaired) impaired)
As at 1 January 2025 2504836.68 86458608.41 88963445.09
Book value of accounts receivable
as at 1 January 2025
- Transfer to credit-impaired accounts receivable - - -
- Reversal of accounts receivable that are not
credit-impaired - - -
Provision for the period 1419529.15 - 1419529.15
Reversal for the period -603439.71 -6556669.83 -7160109.54
Effect of changes in the scope of consolidation - - -
Transfer-out due to derecognition of financial
assets (including direct write-down) - - -
Other changes 289338.38 1311850.39 1601188.77
As at 30 June 2025 3610264.50 81213788.97 84824053.47
(5) For the period from 1 January to 30 June 2025 the Group has no significant provision for
bad debts recovered or reversed this period.
(6) For the period from 1 January to 30 June 2025 the Group has no written-off of accounts
receivable in this period.
(7) The top five balances of accounts receivable at the end of the period classified by debtor
Name of Relationship Book value Aging Provision for bad
Proportion of the amount to
entity with the Group debts the total accountsreceivable (%)
Client 6 Third party 732884774.43 Within 1 year 1-2 years 141682.41 31.51
Client 7 Third party 149524160.90 Within 1 year 1-2 years 176186.63 6.43
Client 8 Third party 79696696.25 Within 1 year 39820.46 3.43
Client 9 Third party 64686721.60 Within 1 year - 2.78
Client 10 Third party 50855496.64 Within 1 year 66162.10 2.19
Total 1077647849.82 423851.60 46.34
- 81 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
5. Prepayments
(1) Aging analysis of prepayments
30/06/202531/12/2024
Aging Book value Proportion Impairment Proportion Impairment(%) provision Book value (%) provision
Within 1 year (including 1 year) 91742618.82 99.15 - 58397947.01 98.69 -
1-2 years (including 2 year) 516113.31 0.56 - 620707.85 1.05 -
2-3 years (including 3 year) 196252.77 0.21 - 8000.00 0.01 -
More than 3 years 70854.95 0.08 - 150462.36 0.25 -
Total 92525839.85 100.00 - 59177117.22 100.00 -
(2) As at 30 June 2025 the Group has no significant prepayments aged more than one year.
(3) The top five balances of prepayments at the end of the period classified by entities
Name of entity Relationship with 30/06/2025 Aging Proportion in totalthe Company prepayments (%) Provision for bad debts
Supplier 1 Third party 16057439.85 Within 1 year 17.35 Unsettled prepayment forlegal fees
Supplier 2 Third party 12842302.68 Within 1 year 13.88 Unsettled prepayment forpremium
Supplier 3 Third party 5240732.18 Within 1 year 5.66 Unsettled prepayment formaterials
Supplier 4 Third party 4913349.78 Within 1 year 5.31 Unsettled prepayment forpremium
Supplier 5 Third party 3285000.04 Within 1 year 3.55 Unsettled advance purchasepayment
Total 42338824.53 45.75
- 82 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Other receivables
6.1 Presentation of other receivables
Item 30/06/2025 31/12/2024
Dividends receivable 1247854681.90 554387723.94
Other receivables 603562362.08 612111619.96
Total 1851417043.98 1166499343.90
6.2 Dividends receivable
(1) Presentation of dividends receivable by aging
Name of investee 30/06/2025 31/12/2024 Reason for non-recovery Whether there is impairmentand its judgment basis
Dividends receivable with an aging
within 1 year 1057022340.92 436240220.68 —— ——
Including: —— —— —— ——
Shanghai International Port (Group)
Co. Ltd. (hereinafter referred to as 947040362.53 326565642.25 —— No
"Shanghai Port Group")
Liaoning Port Co. Ltd. (hereinafter
referred to as "Liaoning Port") 64862336.45 - —— No
China Nanshan Development (Group)
Incorporation (hereinafter referred to 37014000.00 74028000.00 —— No
as "Nanshan Group")
Tianjin Port Container Terminal Co.——
Ltd. 4277111.77 - No
Tin-can Island Container Terminal Ltd. 2638420.91 - —— No
Euro-Asia Oceangate S.à r.l.. - 23881469.17 —— ——
China Ocean Shipping Agency
————
Shenzhen Co. Ltd. - 10575000.00
Others 1190109.26 1190109.26 —— No
Dividends receivable with an aging of
more than one year 192081444.77 118702445.93
————
Including: —— —— —— ——
Relevant procedures are
Nanshan Group 148056000.00 74028000.00 being handled and pastdividends are being paid in No
succession
Zhanjiang Merchants Port City
Investment Co. Ltd. (hereinafter 38809044.77 38809044.77 Lack of funds No
referred to as "Merchants Port City")
COSCO Logistics (Zhanjiang) Co. Ltd. 5000000.00 5649001.16 Lack of funds and paymentis made in installments No
Others 216400.00 216400.00 Lack of funds No
Sub-total 1249103785.69 554942666.61 —— ——
Less: Provision for bad debts 1249103.79 554942.67 —— ——
Total 1247854681.90 554387723.94 —— ——
- 83 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Other receivables - continued
6.2 Dividends receivable - continued
(2) Changes in provision for credit loss of dividends receivable
Stage 1 Stage 2 Stage 3
Item 12-month expected Lifetime expected credit Lifetime expected credit Total
credit loss loss (not credit-impaired) loss (credit-impaired)
As at 1 January 2025 554942.67 - - 554942.67
Balance at 1 January 2025
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period 694161.12 - - 694161.12
Reversal for the period - - - -
As at 30 June 2025 1249103.79 - - 1249103.79
(3) Details of provision for bad debts
Changes for the period
Category 31/12/2024 Provision Recovery or Charge-off or Other 30/06/2025reversal write-off changes
Provision for bad debts
assessed on an individual - - - - - -
basis
Provision for bad debts
assessed on a portfolio basis 554942.67 694161.12 - - - 1249103.79
Total 554942.67 694161.12 - - - 1249103.79
6.3 Other receivables
(1) Aging analysis of other receivables
30/06/202531/12/2024
Aging Book value Proportion Provision for bad Book value Proportion Provision for(%) debts (%) bad debts
Within 1 year
(including 1 year) 284105426.00 23.23 278269.39 270686270.92 23.00 5873.33
1-2 years
(including 2 year) 10977961.44 0.90 1417276.39 34852514.76 2.96 1639836.84
2-3 years
(including 3 year) 65698137.85 5.37 2931409.20 254724777.74 21.64 182279617.60
More than 3 years 862423395.17 70.50 615015603.40 616886752.77 52.40 381113368.46
Total 1223204920.46 100.00 619642558.38 1177150316.19 100.00 565038696.23
(2) Disclosure of other receivables by nature
Item 30/06/2025 31/12/2024
Operation compensation (Note 1) 566875166.05 512608434.72
Advance payment 272423254.79 227885870.03
Land compensation (Note 2) 147262369.00 197262369.00
Security deposit 38315601.33 28631566.40
Special subsidies collected on behalf 19779450.00 19779450.00
Others 178549079.29 190982626.04
Sub-total 1223204920.46 1177150316.19
Less: Provision for bad debts 619642558.38 565038696.23
Total 603562362.08 612111619.96
- 84 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Other receivables - continued
6.3 Other receivables - continued
(2) Disclosure of other receivables by nature - continued
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 30 June 2025 the Group has accumulated the compensation that has not been received
which is equivalent to RMB 566875166.05. The provision for bad debts have been
fully withdrawn.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
30 June 2025 the above land compensation of RMB 89630000.00 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 30 June 2025 the above land compensation of RMB
50000000.00 has been recovered the remaining land compensation of RMB
57632369.00 has not been recovered yet.
- 85 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Other receivables - continued
6.3 Other receivables - continued
(3) Provision for credit loss of other receivables
30/06/202531/12/2024
Credit rating Expected credit 12-month
Lifetime Lifetime Lifetime Lifetime
loss rate (%) expected credit expected credit expected credit
12-month expected credit expected credit
loss loss (not credit- loss (credit-
Total expected credit
loss loss (not credit- loss (credit-
Total
impaired) impaired) impaired) impaired)
A 0.00-0.10 490765708.77 - - 490765708.77 499361668.36 - - 499361668.36
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 732439211.69 732439211.69 - - 677788647.83 677788647.83
Book value 490765708.77 - 732439211.69 1223204920.46 499361668.36 - 677788647.83 1177150316.19
Provision for bad debts 8890.83 - 619633667.55 619642558.38 13957.42 - 565024738.81 565038696.23
Carrying amount 490756817.94 - 112805544.14 603562362.08 499347710.94 - 112763909.02 612111619.96
Significant other receivables for which provision for bad debts is assessed on an individual basis (credit rating of D)
Name of entity 30/06/2025 Provision for bad debts ECL rate (%) Reason for provision
Entity 11 566875166.05 566875166.05 100.00 Expected to be unrecoverable (Note)
Entity 12 122569018.03 9854263.08 8.04 No specific payment plan
Entity 13 14000000.00 14000000.00 100.00 Expected to be unrecoverable
Total 703444184.08 590729429.13
Note: Refer to Note VIII. 6.3(2).- 86 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Other receivables - continued
6.3 Other receivables - continued
(4) Provision for bad 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 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the period 137.50 - 272367.56 272505.06
Reversal for the period -5186.72 - - -5186.72
Effect of changes in the scope of
consolidation - - - -
Charge-off for the period - - - -
Write-off for the period - - - -
Other changes -17.37 - 54336561.18 54336543.81
As at 30 June 2025 8890.83 - 619633667.55 619642558.38
(5) The Group has no significant provision for bad debts recovered or reversed this period.
(6) The Group has no other receivables actually written off this period.
(7) The top five balances of other receivables at the end of the period classified by debtor
Provision for
Name of Relationship Proportion to credit
entity with the Group Book value Aging total other impairment at Naturereceivables (%) the end of the
period
Entity 11 Non-related party 566875166.05 More 46.34 566875166.05 Operationthan 3 years compensation
Entity 14 Non-related party 147262369.00 Within 1 yearmore than 3 years 12.04 - Land compensation
Entity 12 Non-related party 122569018.03 2-3 years morethan 3 years 10.02 9854263.08 Advanced payments
Entity 15 Associated 1-2 years moreenterprise 36847872.80 than 3 years 3.01 - Loan
Entity 16 Related party 28124753.36 Within 1 year2-3 years 2.30 - Advanced payments
Total 901679179.24 73.71 576729429.13
- 87 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Inventories
(1) Inventories by category
30/06/202531/12/2024
Item Provision for Provision forBook value impairment of Carrying Book value impairment of Carrying
inventories amount inventories amount
Raw materials 311130210.01 1144560.02 309985649.99 261972849.28 1153436.72 260819412.56
Finished goods 4740217.77 - 4740217.77 4683965.30 - 4683965.30
Others 1179020.94 - 1179020.94 4454642.48 - 4454642.48
Total 317049448.72 1144560.02 315904888.70 271111457.06 1153436.72 269958020.34
(2) Provision for impairment of inventories
Increase Decrease Effect of
translation of
Category 1/1/2025 financialProvision Others Reversal or 30/06/2025charge-off Others statementsdenominated in
foreign currencies
Raw materials 1153436.72 - - 1621.20 - -7255.50 1144560.02
Provision for decline in value of inventories is made on an item-by-item basis and no provision
for decline in value of inventories is made on a portfolio basis. The reason for the write-off of
provision for impairment of inventories in this period is the recovery of value.
(3) As at 30 June 2025 the Group has no capitalized borrowing cost in the balance of
inventories.- 88 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Non-current assets due within one year
(1) Presentation of non-current assets due within one year
Item 30/06/2025 31/12/2024
Long-term receivables due within one year 35033573.82 35033025.11
Less: Provision for bad debts 35033.57 35033.03
Carrying amount 34998540.25 34997992.08
9. Other current assets
Item 30/06/2025 31/12/2024
Prepaid taxes 134541661.39 140440401.53
Input VAT to be deducted and certified 101311382.93 110187182.64
Others 43854.65 1070228.60
Sub-total 235896898.97 251697812.77
Less: Provision for impairment - -
Total 235896898.97 251697812.77
10. Long-term receivables
(1) Details of long-term receivables
30/06/2025 31/12/2024 Range of discount
Item Book value Provision for Carrying Book value Provision for Carrying rate at the end ofbad debts amount bad debts amount period
Land compensation receivable (Note 2) 2641932000.00 - 2641932000.00 2641932000.00 - 2641932000.00
Advances to shareholders (Note 1) 1255266775.79 1255266.78 1254011509.01 1169988750.65 1169988.75 1168818761.90 3.00%-8.42%
Guarantees for finance leases 1474337.36 1474.33 1472863.03 1453195.68 1453.20 1451742.48 4.4%
Others 169062.40 - 169062.40 169062.40 - 169062.40
Total 3898842175.55 1256741.11 3897585434.44 3813543008.73 1171441.95 3812371566.78
Less: Long-term receivables
due within 1 year 35033573.82 35033.57 34998540.25 35033025.11 35033.03 34997992.08
Long-term receivables due after 1 year 3863808601.73 1221707.54 3862586894.19 3778509983.62 1136408.92 3777373574.70
- 89 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. 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 985036038.69 and RMB
234709770.32 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 RMB 1558032000.00. Among them 183.63 mu of land and attached
buildings have been transferred in 2019 and the remaining 187.33 mu of land and
attached buildings have been transferred in 2020. As at 30 June 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 RMB250000000.00. The above land and
attached buildings have been handed over before 31 December 2020. As at 30 June 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 RMB2724876000.00. 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 30 June 2025 the land compensation of RMB
1283900000.00 has not yet been recovered.
- 90 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Long-term receivables - continued
(2) Long-term receivables disclosed by method of provision for bad debts
30 June 2025 31 December 2024
Category Book value Provision for bad debts Carrying Book value Provision for bad debts
Amount Proportion Amount Proportion amount Amount Proportion Proportion Carrying amount(%) (%) (%) Amount (%)
Provision for bad debts
assessed on a portfolio 3898842175.55 100.00 1256741.11 0.03 3897585434.44 3813543008.73 100.00 1171441.95 0.03 3812371566.78
basis
Total 3898842175.55 100.00 1256741.11 3897585434.44 3813543008.73 100.00 1171441.95 3812371566.78
Provision for bad debts assessed on a portfolio basis
Credit rating 30 June 2025Accounts receivable Provision for bad debts Proportion (%)
A 3898842175.55 1256741.11 0.03
Total 3898842175.55 1256741.11
(3) Provision for bad debts of long-term receivables
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 1171441.95 - - 1171441.95
Book value of long-term
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 period 85311.89 - - 85311.89
Reversal for the period -12.73 - - -12.73
Charge-off for the period - - - -
Write-off for the period - - - -
Other changes - - - -
As at 30 June 2025 1256741.11 - - 1256741.11
(4) Details of provision for bad debts
Changes for the period
Effect of
Category 01/01/2025 Provision Recovery or Charge-off or changes in the 30/06/2025reversal write-off scope of
consolidation
Advances to shareholders 1169988.75 85278.03 - - - 1255266.78
Guarantees for finance
leases 1453.20 33.86 -12.73 - - 1474.33
Land compensation
receivable - - - - - -
Others - - - - - -
Total 1171441.95 85311.89 -12.73 - - 1256741.11
(5) There are no long-term receivables written off during the period.
- 91 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term equity investments
(1) Classification of long-term equity investments
Effect of
Effect of changes translation of
Item 01/01/2025 in the scope of Increase in Decrease in
Other increase financial
consolidation investments investments
(decrease expressed statements 30/06/2025
with "-") denominated in
foreign currencies
Investment in joint ventures 9315986527.94 - - - 119473373.76 82547661.58 9518007563.28
Investment in associates 91037465629.64 - 52224356.69 -1027011.50 1572908221.21 -68816900.93 92592754295.11
Sub-total 100353452157.58 - 52224356.69 -1027011.50 1692381594.97 13730760.65 102110761858.39
Less: provision for impairment of
long-term equity investments 335422262.62 - - - - -33786.19 335388476.43
Total 100018029894.96 - 52224356.69 -1027011.50 1692381594.97 13764546.84 101775373381.96
(2) Details of long-term equity investments
Changes for the period
Effect of translation of
Investees 01/01/2025 Increase in Decrease in Investment Share of other Share of other Cash dividends or Provision for financial statements 30/06/2025 Provision for impairment
investments investments income under comprehensive changes inequity method income equity profits declared impairment denominated in foreign
Others at the end of the period
currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. 2275132823.96 - - 70196770.59 - - - - -7010170.05 - 2338319424.50 -
Port of Newcastle 1939252174.56 - - 17546382.69 1925795.27 - - - 65231465.91 - 2023955818.43 -
Others 5093488046.78 - - 70512931.33 - 2366521.68 -43075027.80 - 24326365.72 - 5147618837.71 8113482.64
Sub-total 9307873045.30 - - 158256084.61 1925795.27 2366521.68 -43075027.80 - 82547661.58 - 9509894080.64 8113482.64
II. Associates
Shanghai Port Group 40042373774.56 - - 2252615996.30 20081602.53 -401614813.34 -947040362.54 - - - 40966416197.51 -
Ningbo Zhoushan Port Company Limited
(hereinafter referred to as "Ningbo Zhoushan") 19421486011.70 - - 599442861.88 -10157802.93 57452918.48 -484863218.46 - - - 19583360770.67 -
Shenzhen China Merchants Qianhai
Industrial Development Co. Ltd. 7409920859.08 - - 7525682.72 - - - - - - 7417446541.80 -
Terminal Link SAS 6168712893.68 - - 282658056.13 469511729.70 - -442163972.28 - -19300192.76 - 6459418514.47 -
Nanshan Group 6033520232.11 - - 66520500.72 102203.13 - -37014000.00 - - - 6063128935.96 -
Liaoning Port 4250226314.79 - - 108535869.92 -1966554.51 3449621.95 -64882190.15 - - - 4295363062.00 324913116.66
Others 7383916763.74 52224356.69 -1027011.50 130951159.77 1462.00 -509094.19 -33701401.34 - -49482921.98 -2028034.28 7480345278.91 2361877.13
Sub-total 90710156849.66 52224356.69 -1027011.50 3448250127.44 477572639.92 -341221367.10 -2009665144.77 - -68783114.74 -2028034.28 92265479301.32 327274993.79
Total 100018029894.96 52224356.69 -1027011.50 3606506212.05 479498435.19 -338854845.42 -2052740172.57 - 13764546.84 -2028034.28 101775373381.96 335388476.43
- 92 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. 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 01/01/2025 in the scope of Increase statements 30/06/2025
consolidation Decrease
Reasons for
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 - - - - -33786.19 2361877.13
Total 335422262.62 - - - - -33786.19 335388476.43
- 93 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Investments in other equity instruments
(1) Details of investments in other equity instruments4
Dividend income Other comprehensive Other comprehensive Reasons for designation at fair Amount transferred from Reasons for transferring
Item 30/06/2025 31/12/2024 recognized for income during the income at the end of the value through other other comprehensive income other comprehensive income
the period period period comprehensive income to retained earnings to retained earnings
China Ocean Shipping 129726519.67 129726519.67 - - - It is a non-trading equityAgency Shenzhen Co. Ltd. instrument investment - ——
Others 9725367.38 9725367.38 120000.00 - - It is a non-trading equityinstrument investment - ——
Total 139451887.05 139451887.05 120000.00 - - -
(2) There are no other equity instruments derecognized for the period.
- 94 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Other non-current financial assets
Item 30/06/2025 31/12/2024
Financial assets at FVTPL 28524600.31 28524600.31
Including: Investments in equity instruments 28524600.31 28524600.31
Total 28524600.31 28524600.31
14. Investment properties
(1) Investment properties measured at cost
Item Land use rights Buildings andstructures Total
I. Cost
1. As at 1 January 2025 136657995.75 4319416172.19 4456074167.94
2. Effect of changes in the scope of
consolidation - - -
3. Increase for the period - - -
(1) Other increase - - -
4. Decrease for the period - 552235.00 552235.00
(1) Transfer from investment
properties to fixed assets - - -
(2) Other decreases - 552235.00 552235.00
5. As at 30 June 2025 136657995.75 4318863937.19 4455521932.94
II. Accumulated depreciation
and amortization
1. As at 1 January 2025 50135665.57 1117248431.77 1167384097.34
2. Increase for the period 1275561.65 61769732.07 63045293.72
(1) Charge for the period 1275561.65 61769732.07 63045293.72
3. Decrease for the period - 161287.68 161287.68
(1) Transfer from investment
properties to fixed assets - - -
(2) Other decreases - 161287.68 161287.68
4. As at 30 June 2025 51411227.22 1178856876.16 1230268103.38
III. Impairment provision
1. As at 1 January 2025 - - -
2. Increase for the period - - -
3. Decrease for the period - - -
4. As at 30 June 2025 - - -
IV. Carrying amount
1. As at 30 June 2025 85246768.53 3140007061.03 3225253829.56
2. As at 1 January 2025 86522330.18 3202167740.42 3288690070.60
- 95 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Investment properties - continued
(2) Investment properties without ownership certificates
Item Book value Reasons for not obtaining certificate oftitle Expected time of completion
Buildings structures 19572190.99 Some buildings and structures have not yet
In the process of negotiating and
and land use rights obtained certificates of land use rights processing the property titlecertificate
15. Fixed assets
15.1 Summary of fixed assets
Item 30/06/2025 31/12/2024
Fixed assets 30161556835.57 30688591344.25
Disposal of fixed assets 261332.20 626447.20
Total 30161818167.77 30689217791.45
15.2 Fixed assets
(1) Details of fixed assets
Machinery and
Item Port and terminal Buildings and equipment furniture Motor vehicles andfacilities structures fixture and other cargo ships Total
equipment
I. Cost
1. As at 1 January 2025 32465773556.56 3694135032.52 17385378609.69 2287212824.87 55832500023.64
2. Effect of changes in the scope of
consolidation - - 215249.81 516249.00 731498.81
3. Increase for the period 132853815.05 - 99563657.40 4800835.50 237218307.95
(1) Purchase 22320937.89 - 54911735.60 3911968.26 81144641.75
(2) Transfer from development costs - - 1014917.78 - 1014917.78
(3) Transfer from construction in progress 110532877.16 - 43637004.02 888867.24 155058748.42
(4) Transfer from right-of-use assets - - - - -
(5) Transfer from investment properties - - - - -
(6) Others - - - - -
4. Decrease for the period 1934490.13 - 42730487.97 3680.91 44668659.01
(1) Disposal or retirement 1934490.13 - 42242137.17 3680.91 44180308.21
(2) Others - - 488350.80 - 488350.80
5. Settlement variance adjustments -1182232.22 - -31142.23 - -1213374.45
6. Reclassification -2943454.14 - 3125164.77 -181710.63 -
7. Effect of translation of financial statements
denominated in foreign currencies 212978526.71 -1184424.87 206158029.54 -1756522.17 416195609.21
8. As at 30 June 2025 32805545721.83 3692950607.65 17651679081.01 2290587995.66 56440763406.15
II. Accumulated depreciation
1. As at 1 January 2025 11530007770.51 1078040229.08 11097200518.48 1225369778.26 24930618296.33
2. Effect of changes in the scope of
consolidation - - 215249.81 516249.00 731498.81
3. Increase for the period 497449874.72 64748343.36 398501303.99 54325396.89 1015024918.96
(1) Charge for the period 497449874.72 64748343.36 398501303.99 54325396.89 1015024918.96
(2) Transfer from right-of-use assets - - - - -
(3) Transfer from investment properties - - - - -
(4) Others - - - - -
4. Decrease for the period 1463529.95 - 37445858.15 2143805.30 41053193.40
(1) Disposal or retirement 1463529.95 - 37024089.03 - 38487618.98
(2) Others - - 421769.12 2143805.30 2565574.42
5. Reclassification -997007.60 -2225.26 -6218170.77 7217403.63 -
6. Effect of translation of financial statements
denominated in foreign currencies 47884562.02 -751905.50 113586951.61 -201901.06 160517707.07
7. As at 30 June 2025 12072881669.70 1142034441.68 11565839994.97 1285083121.42 26065839227.77
III. Impairment provision
1. As at 1 January 2025 196464146.22 9414527.47 7411709.37 - 213290383.06
2. Increase for the period - - - - -
3. Decrease for the period - - 42717.28 - 42717.28
4. Effect of translation of financial statements
denominated in foreign currencies - - 119677.03 - 119677.03
5. As at 31 30 June 2025 196464146.22 9414527.47 7488669.12 - 213367342.81
IV. Carrying amount
1. As at 30 June 2025 20536199905.91 2541501638.50 6078350416.92 1005504874.24 30161556835.57
2. As at 1 January 2025 20739301639.83 2606680275.97 6280766381.84 1061843046.61 30688591344.25
Including: Carrying amount of fixed assets pledged at
the end of the period 298296450.40 1967919.77 326328155.81 758784.23 627351310.21
- 96 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Fixed assets - continued
15.2 Fixed assets - continued
(2) The Group has no fixed assets that are temporarily idle as at 30 June 2025.
(3) Fixed assets leased out under operating leases
Item Carrying amount as Carrying amount asat 30/06/2025 at 31/12/2024
Buildings and structures 172948620.54 185465560.82
Port and terminal facilities 17936791.73 41979439.95
Machinery and equipment furniture fixture and other equipment 1389101.07 10203232.09
Total 192274513.34 237648232.86
(4) Details of fixed assets depreciated but still in use and temporarily idle at the end of the
period and fixed assets disposed and retired in the period:
Item Amount Remark
I. Cost of fixed assets fully depreciated but still in use
at the end of the period 4839552339.54
II. Cost of fixed assets temporarily idle at the end of the period -
III. Fixed assets disposed and retired in the period:
Including: Cost of fixed assets disposed and retired in the period 44180308.21
Net book value of fixed assets disposed and retired in the period 5692689.23
Loss on disposal or retirement of fixed assets in the period (“-”
for loss) -1226124.74
(5) Fixed assets without ownership certificates
Item Carrying amount as Carrying amount asat 30/06/2025 at 31/12/2024 Remark
Buildings structures This is mainly due to the fact that certain buildings
port and terminal 1318564715.49 1357929730.13 and structures have not yet obtained the land use
facilities rights of the corresponding land and the approvalprocedures have not yet been completed.
(6) The details of the Group's fixed assets with restricted ownership as at 30 June 2025 are set
out in Note VIII. 63.- 97 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Fixed assets - continued
15.3 Disposal of fixed assets
Item 30/06/2025 31/12/2024
Machinery and equipment furniture fixture
and other equipment 261332.20 626447.20
Total 261332.20 626447.20
16. Construction in progress
(1) Presentation of construction in progress
Item 30/06/2025 31/12/2024
Construction in progress 3789449907.72 3296562213.14
Materials for construction in progress 3198804.01 14547783.45
Total 3792648711.73 3311109996.59
(2) Details of construction in progress
30/06/202531/12/2024
Item Book value Provision for Carrying Book value Provision for Carryingimpairment amount impairment amount
Port and terminal
facilities 2070411080.59 - 2070411080.59 1950072409.34 - 1950072409.34
Infrastructure 854040770.80 - 854040770.80 608560125.43 - 608560125.43
Berths and yards 641668645.57 - 641668645.57 475884349.47 - 475884349.47
Cargo ships under
construction 34821101.34 - 34821101.34 21073474.73 - 21073474.73
Others 189275809.02 767499.60 188508309.42 241750332.70 778478.53 240971854.17
Total 3790217407.32 767499.60 3789449907.72 3297340691.67 778478.53 3296562213.14
- 98 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Construction in progress - continued
(3) Changes of significant construction in progress
Effect of
translation of Proportion of Amount of Including: Interest
Increase for Transfer to Other financial accumulated Construction accumulated Capitalized capitalizationItem Budget amount 01/01/2025 the period fixed assets decreases for statements 30/06/2025 construction progress (%) capitalized interest for rate for the
Capital
the period denominated investment in current period source
in foreign budget (%) interest the period (%)
currencies
Zhanjiang Port Baoman Port Area Container
Terminal Phase I Expansion Project 2342775800.00 597781190.31 245245026.69 - - - 843026217.00 35.98 35.98 7986884.10 3833013.50 2.65
Own funds
and loans
Reconstruction project of HIPG
container oil terminal and tank area 2899284007.32 843680056.40 - - - -2535124.54 841144931.86 50.03 50.03 - - - Own funds
Zhanjiang Port Donghai Island Port Area
Grocery Wharf Project 905348400.00 480001315.04 33994899.72 - - - 513996214.76 61.67 61.67 44364372.49 - -
Own funds
and loans
Phase I of the second phase of the wharf
project in the local operation area of 746878600.00 331708848.99 47906302.42 - - - 379615151.41 84.01 84.01 27278822.86 5803008.28 2.78 Own funds
Goshan Port Area is controlled in sequence and loans
Subsequent construction in progress of
HIPG wharf 1144779481.16 347651856.20 24445986.35 29799127.47 - -1031442.96 341267272.12 32.41 32.41 1777492.82 1781885.21 7.08
Own funds
and loans
Phase II of the second phase project of
the wharf in the local operation area of
the port area of Goshan Port is controlled in 512745400.00 136728384.61 116966302.52 - - - 253694687.13 49.48 49.48 1011974.99 1011974.99 2.78
Own funds
and loans
sequence
Dachanwan phase II project 6201904300.00 94110621.23 15795438.98 - - - 109906060.21 1.77 1.77 - - - Own funds
Phase III Expansion Project of Bulk Grain
Warehouse at 2 # and 3 # Berths in 1070060466.80 55590989.31 49112189.71 - - - 104703179.02 10.00 10.00 1138413.55 643272.54 2.40 Own funds
Xinshanan Operation Area of Machong Port and loans
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82400000.00 63924781.40 418555.20 - - - 64343336.60 78.00 78.00 - - - Own funds
Facilities and Liquid Bulk Berth
The Project of Zhanjiang Port 21#
Warehouse and Substation Renovation and 117110000.00 19044357.57 20196457.04 - - - 39240814.61 34.00 34.00 - - - Own funds
Expansion
Phase II warehouse of Djibouti Free Trade
Zone Bonded Logistics Park 88388418.32 73109774.23 15536625.51 88606836.42 - -39563.32 - 100.00 100.00 - - - Own funds
Total 16111674873.60 3043332175.29 569617784.14 118405963.89 - -3606130.82 3490937864.72 —— —— 83557960.81 13073154.52 —— ——
- 99 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Construction in progress - continued
(4) Materials for construction in progress
30/06/202531/12/2024
Item Book value Provision for Carryingimpairment amount Book value
Provision for Carrying
impairment amount
Materials for construction in
progress 3198804.01 - 3198804.01 14547783.45 - 14547783.45
17. Right-of-use assets
（1） Details of right-of-use assets
Machinery and
Port and Motor
Item terminal Buildings and
equipment
structures furniture Land use rights
vehicles cargo Total
facilities fixture and ships and
other equipment others
I. Cost
1. As at 1 January 2025 6494856616.10 154067861.90 5409429.14 3718797951.13 6177384.73 10379309243.00
2. Increase for the period 296669.10 - - 115058088.68 3115026.16 118469783.94
(1) Increase 296669.10 - - 115058088.68 3115026.16 118469783.94
3. Decrease for the period 629562.49 8873024.95 - 2408655.71 - 11911243.15
(1) Change or termination of lease 629562.49 8873024.95 - 2408655.71 - 11911243.15
(2) Transfer to fixed assets - - - - - -
4. Effect of translation of financial
statements denominated in foreign -20452001.31 -419619.69 -2643.37 -18088963.04 - -38963227.41
currencies
5. As at 30 June 2025 6474071721.40 144775217.26 5406785.77 3813358421.06 9292410.89 10446904556.38
II. Accumulated depreciation
1. As at 1 January 2025 928160476.79 37043873.94 4164300.68 448828617.90 3759910.15 1421957179.46
2. Increase for the period 90519865.00 5368155.56 839531.43 34904485.73 868801.50 132500839.22
(1) Charge for the period 90519865.00 5368155.56 839531.43 34904485.73 868801.50 132500839.22
3. Decrease for the period 517458.68 883087.55 - 2306514.00 - 3707060.23
(1) Change or termination of lease 517458.68 883087.55 - 2306514.00 - 3707060.23
(2) Transfer to fixed assets - - - - - -
4. Effect of translation of financial
statements denominated in foreign -4000971.31 -123658.16 -1428.43 -1585818.56 - -5711876.46
currencies
5. As at 30 June 2025 1014161911.80 41405283.79 5002403.68 479840771.07 4628711.65 1545039081.99
III. Impairment provision
1. As at 1 January 2025 - - - - - -
2. Increase for the period - - - - - -
3. Decrease for the period - - - - - -
4. As at 30 June 2025 - - - - - -
IV. Carrying amount
1. As at 30 June 2025 5459909809.60 103369933.47 404382.09 3333517649.99 4663699.24 8901865474.39
2. As at 1 January 2025 5566696139.31 117023987.96 1245128.46 3269969333.23 2417474.58 8957352063.54
- 100 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Intangible assets
(1) Details of intangible assets
Item Land use rights Terminal managementrights Data resources Others Total
I. Cost
1. As at 1 January 2025 14063421368.77 9319595026.35 6339622.62 1581490047.40 24970846065.14
2. Effect of changes in the scope of
consolidation - - - 18846.02 18846.02
3. Increase for the period 194153308.62 282605.85 - 62668982.70 257104897.17
(1) Purchase 194153308.62 282605.85 - 16393379.74 210829294.21
(2) Transfer from development costs - - - 45378503.64 45378503.64
(3) Other increase - - - 897099.32 897099.32
4. Decrease for period 99134626.99 - - 790408.86 99925035.85
(1) Disposal 99134626.99 - - 790408.86 99925035.85
5. Effect of translation of financial statements
denominated in foreign currencies -3275177.58 848584242.51 - 68039570.38 913348635.31
6. As at 30 June 2025 14155164872.82 10168461874.71 6339622.62 1711427037.64 26041393407.79
II. Accumulated amortization
1. As at 1 January 2025 4605959694.01 2356430281.06 88502.35 616274894.81 7578753372.23
2. Effect of changes in the scope of
consolidation - - - 10051.20 10051.20
3. Increase for the period 164366555.57 154245394.96 316981.03 44570813.81 363499745.37
(1) Charge for the period 164366555.57 154245394.96 316981.03 44159809.19 363088740.75
(2) Other increase - - - 411004.62 411004.62
4. Decrease for the period 23385539.76 - - 754444.98 24139984.74
(1) Disposal 23385539.76 - - 754444.98 24139984.74
5. Effect of translation of financial statements
denominated in foreign currencies -1620785.91 215383164.94 - 28321400.31 242083779.34
6. As at 30 June 2025 4745319923.91 2726058840.96 405483.38 688422715.15 8160206963.40
III. Impairment provision
1. As at 1 January 2025 44199381.24 - - 12810888.83 57010270.07
2. Increase for the period - - - 42717.28 42717.28
3. Decrease for the period - - - - -
4. As at 30 June 2025 44199381.24 - - 12853606.11 57052987.35
IV. Carrying amount
1. As at 30 June 2025 9365645567.67 7442403033.75 5934139.24 1010150716.38 17824133457.04
2. As at 1 January 2025 9413262293.52 6963164745.29 6251120.27 952404263.76 17335082422.84
(2) Land use rights without ownership certificates as at 30 June 2025:
Item Carrying amount Carrying amountas at 30/06/2025 as at 31/12/2024
Land use rights (Note) 1698512573.87 1889916568.77
- 101 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
18. Intangible assets - continued
(2) Land use rights without ownership certificates as at 30 June 2025: - continued
Note: As at 30 June 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 1179194226.17 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 30 June 2025
are set out in Note VIII. 63.
19. Goodwill
(1) Details of goodwill
Increase this period
Effect of translation of
Investee Sources 01/01/2025 Decrease financial statements
Business denominated in foreign
30/06/2025
combination Other increase currencies
(Note)
TCP Acquisition of equity 2369714257.24 - - - 293283800.98 2662998058.22
Mega Shekou Container
Terminals Limited (hereinafter referred Acquisition of equity 1815509322.42 - - - - 1815509322.42
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 - -133590.76 351907171.72
Sub-total —— 6903973973.67 6718413.80 - - 293150210.22 7203842597.69
Provision for impairment of goodwill —— 970663044.33 - - - - 970663044.33
Total —— 5933310929.34 6718413.80 - - 293150210.22 6233179553.36
Note: See Note X. 1 for details.- 102 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Goodwill - continued
(2) Provision for impairment of goodwill
Effect of
Effect of changes translation of
Investee 31/12/2024 in the scope of Provision financial
consolidation statements
Decrease 30/06/2025
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 thegroups 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
(4) Specific method for determination of recoverable amount
When conducting impairment tests on goodwill 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 25 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 parameters of key assumptions determined by the Group's management are
in line with the Group's historical experience or external source of information.- 103 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Long-term deferred expenses
Presentation of long-term deferred expenses:
Effect of
Item 01/01/2025 changes in Increase for Amortization Other
Reason for
the scope of the period in the period decreases 30/06/2025 other
consolidation decreases
Tonggu channel widening project
(Note 1) 426358457.19 - - 7310063.39 - 419048393.80
West public channel widening
project at West port area (Note 2) 229677161.96 - - 3301813.08 - 226375348.88
Dredging project 65783053.94 - 8015464.21 12301834.25 3393.81 61493290.09 SettlementVariance
Relocation project of Nanhai Rescue
Bureau 35339374.70 - - 553684.20 - 34785690.50
Expenditures for the improvement of
leased fixed assets 20416797.88 - 6777558.75 1322306.66 623271.52 25248778.45
Settlement
Variance
Others 162829634.27 - 20142105.85 25271238.56 53922.99 157646578.57 SettlementVariance
Total 940404479.94 - 34935128.81 50060940.14 680588.32 924598080.29
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'ssubsidiary has included the expenses on deepening the channel in the item of “long-termdeferred expenses” and amortized such expenses over the expected useful lives of the
two widening projects of 35 and 40 years using straight-line method since the
completion of each project in 2008 and 2019 respectively.Note 2: This represents the Group's actual expenses on Shenzhen West Port Area Public Channel
Widening Project of which the widening of 240-270M in the first section was
completed on 1 June 2019 and the widening of 240-270M in the second and third
sections was completed on 5 November 2020. According to relevant resolutions of
Shenzhen Municipal Government the enterprise and government shall bear 50% and
50% of the expenses incurred for the project respectively. The Company's subsidiary hasincluded the expenses on deepening the channel in the item of “long-term deferredexpenses” and amortized such expenses over the expected useful life of 40 years using
straight-line method since the completion of each section of the channel widening
project.- 104 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Deferred income tax
(1) Deferred tax assets before offsetting
30/06/202531/12/2024
Item Deductible Deferred tax Deductibletemporary assets temporary
Deferred tax
differences differences assets
Lease liabilities 627617310.30 156776788.22 666428741.59 163857577.86
Unrealized profit 739765524.18 180875763.07 742725529.54 181536190.45
Terminal operating right 723032577.53 216909773.26 725211723.54 217563517.06
Depreciation of fixed assets 179598025.20 38582177.33 180532470.26 38716737.33
Provision for bad debts 80025017.61 17393010.93 84382905.10 18830890.39
Accrued and unpaid wages 105359124.08 22406171.63 104332100.77 21864895.76
Estimated liabilities 80725953.31 27103084.92 72335644.41 24250379.90
Deductible losses 64026865.92 9637384.94 35370822.19 5384926.28
Deferred income 35658563.87 8502777.40 36119190.53 8571871.40
Amortization of computer software 6227033.91 1225537.16 6236548.44 1226964.34
Provision for impairment of assets 3578012.68 705208.69 3477996.67 690206.29
Others 102451566.14 23601492.70 98150808.94 22429487.85
Total 2748065574.73 703719170.25 2755304481.98 704923644.91
(2) Deferred tax liabilities before offsetting
30/06/202531/12/2024
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Withholding dividend income tax 47247414699.93 3236526740.42 45628599622.34 3127746150.78
Right-of-use assets 935153783.61 250005104.27 972527705.73 257345925.13
Terminal operating right 272832750.12 81849825.04 273655040.04 82096512.01
Fair value adjustment of assets acquired
from business combination 5029117381.76 1271087866.82 4861662497.66 1254384068.52
Depreciation of fixed assets 989000597.42 272332032.13 934419445.82 257210035.67
Changes in fair value of investments in
other equity instruments 116216519.64 29054129.91 116216519.64 29054129.91
Valuation of financial assets held for
trading 1018630.12 254657.53 3019863.08 754965.77
Others 1085407084.74 123333617.13 1026333384.24 126835982.94
Total 55676161447.34 5264443973.25 53816434078.55 5135427770.73
(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
Item and liabilities at the liabilities after
deferred tax assets tax assets or
offsetting at the end and liabilities at the liabilities afterend of the current
period of the current
end of the prior offsetting at the end
period year of the prior year
Deferred tax assets -331827381.96 371891788.29 -339442437.14 365481207.77
Deferred tax liabilities -331827381.96 4932616591.29 -339442437.14 4795985333.59
- 105 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Deferred income tax - continued
(4) Deductible temporary differences and deductible losses for which deferred tax assets are
not recognized
Item 30/06/2025 31/12/2024
Deductible temporary differences 1104362401.32 1126951677.30
Deductible losses 1935788353.26 1637807708.04
Total 3040150754.58 2764759385.34
The Group recognizes deferred income tax assets to the extent of future taxable income that is
likely to be obtained to offset the deductible temporary differences and deductible losses. For the
excess of deductible temporary differences and deductible losses over future taxable income no
deferred tax assets are recognized.
(5) Deductible losses for which deferred tax assets are not recognized will be expired in the
following years:
Year 30/06/2025 31/12/2024
2025375181018.80375181018.80
2026105089811.43105089811.43
2027309663870.29332432966.78
2028738506040.01753239633.32
202965740049.2071864277.71
2030341607563.53-
Total 1935788353.26 1637807708.04
22. Other non-current assets
Item 30/06/2025 31/12/2024
Advances for the channel project (Note 1) 1045135133.81 1037329218.89
Prepayments for long-term assets 87316496.13 117351349.97
Prepayments for terminal operating right 31564524.61 28542865.38
Others 14737557.14 14325919.01
Sub-total 1178753711.69 1197549353.25
Less: provision for impairment (Note 2) 88524171.44 88524171.44
Total 1090229540.25 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.- 106 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Other non-current assets - continued
Note 2: As at 30 June 2025 based on the credit risk rating results the Group accrued the
corresponding credit impairment of RMB 88524171.44 for the advances for the channel
project.
23. Short-term borrowings
(1) Classification of short-term borrowings
Item 30/06/2025 31/12/2024
Credit borrowings 12262578509.37 12771225106.96
Mortgage borrowings (Note 1) 42027223.33 20017034.73
Total 12304605732.70 12791242141.69
Note 1: It represents the short-term borrowings obtained by Guangdong Yide Port Co. Ltd.(hereinafter referred to as "Yide Port") a subsidiary of the Company with the land use
rights and buildings on the land held by it as the collateral.
(2) As at 30 June 2025 the Group has no short-term borrowings that are overdue.
24. Bills payable
Category 30/06/2025 31/12/2024
Bank acceptance - 1536194.00
Total - 1536194.00
Note: As at 30 June 2025 the Group has no bills payable due and unpaid.
25. Accounts payable
Item 30/06/2025 31/12/2024
Service fee 216705683.30 177881786.24
Material purchase fee 139056545.71 147233743.30
Construction fee 76683576.32 97723911.20
Equipment payments 39496833.89 79246916.34
Rental fee 21513841.88 19621514.17
Others 182228231.25 264122661.08
Total 675684712.35 785830532.33
- 107 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
25. Accounts payable - continued
(1) Aging of accounts payable
30/06/202531/12/2024
Aging Amount Proportion(%) Amount
Proportion
(%)
Within 1 year (Including 1 year) 604467055.58 89.46 694992359.27 88.44
1-2 years (Including 2 years) 31481230.38 4.66 46762212.21 5.95
2-3 years (Including 3 years) 9034930.03 1.34 11450482.24 1.46
More than 3 years 30701496.36 4.54 32625478.61 4.15
Total 675684712.35 100.00 785830532.33 100.00
(2) Significant accounts payable aged more than 1 year
Name of entity 30/06/2025 Aging Reason for outstanding
1-2 years and
Quanzhou Antong Logistics Co. Ltd. 17869057.61 more than To be paid upon
3 years confirmation by both parties
Sinopec Group Assets Operation Management 1-2 years 2-3
Co. Ltd. Guangdong Petroleum Branch 11143700.00 years and more
To be paid upon
than 3 years confirmation by both parties
26. Advance payments received
Item 30/06/2025 31/12/2024
Rental fee received in advance 16007441.98 14371546.45
Others 203368.23 204691.39
Total 16210810.21 14576237.84
(1) Aging of advance payments received
30/06/202531/12/2024
Aging Amount Proportion(%) Amount
Proportion
(%)
Within 1 year (Including 1 year) 15973953.11 98.53 13621118.48 93.45
1-2 years (Including 2 years) 99801.05 0.62 955119.36 6.55
2-3 years (Including 3 years) 137056.05 0.85 - -
More than 3 years - - - -
Total 16210810.21 100.00 14576237.84 100.00
(2) As at 30 June 2025 the Group has no significant advance payments received aged more
than one year.
(3) For the period ended 30 June 2025 the Group has no advance payments received with
significant changes in carrying amount.- 108 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
27 Contract liabilities
(1) Details of contract liabilities
Item 30/06/2025 31/12/2024
Port and service fees collected in advance 199678001.02 123282437.42
Unused sales discounts 129583924.79 123329461.62
Storage fees collected in advance 2792782.49 5407746.76
Others 17002507.61 15868626.82
Total 349057215.91 267888272.62
(2) Revenue recognized in the current period that was included in the book value of contract
liabilities at the beginning of the current period.An amount of RMB148550363.21 within the book value of contract liabilities at the beginning
of the current period has been recognized as revenue during the current period including contract
liabilities arising from settled and uncompleted accounts formed by contracts for unused sales
discounts and advance collection of port and service fees advance collection of storage fees and
other contracts.
(3) As at 30 June 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 recognizes
contract revenue according to the performance schedule and contract liabilities will be recognized
as revenue after the Group performs its performance obligations.
(5) For the period from 1 January to 30 June 2025 the Group has no contract liabilities with
significant changes in book value.
28. Employee benefits payable
(1) Presentation of employee benefits payable
Effect of
Item 01/01/2025 changes in the Increase for the Decrease for thescope of period period 30/06/2025
consolidation
1. Short-term benefits 1159571782.03 888451.87 1661401315.50 1758891848.85 1062969700.55
2. Post-employment benefits
- defined contribution plan 8520567.12 - 197611565.70 191671648.44 14460484.38
3. Termination benefits 500000.00 - 2048935.42 2548935.42 -
4. Other benefits due within 1 year - - 55312.91 55312.91 -
5. Others - - 2564051.05 2539549.05 24502.00
Total 1168592349.15 888451.87 1863681180.58 1955707294.67 1077454686.93
- 109 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
- 110 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28. Employee benefits payable - continued
(2) Presentation of short-term benefits
Effect of
Item 01/01/2025 changes in the Increase for the Decrease for thescope of period period 30/06/2025
consolidation
1. Wages and salaries bonuses
allowances and subsidies 1126682376.20 93380.00 1354094900.73 1455253402.66 1025617254.27
2. Staff welfare - - 73249736.28 68027632.97 5222103.31
3. Social insurance contributions 21283662.81 - 102882867.51 106555686.93 17610843.39
Including: Medical insurance 17671866.66 - 81443790.76 85191603.61 13924053.81
Work injury insurance - - 12636449.53 12636449.53 -
Others 3611796.15 - 8802627.22 8727633.79 3686789.58
4. Housing funds 0.01 - 98474290.58 98365157.84 109132.75
5. Labour union and employee
education funds 11605743.01 795071.87 24409627.01 24787172.07 12023269.82
6. Other short-term benefits - - 8289893.39 5902796.38 2387097.01
Total 1159571782.03 888451.87 1661401315.50 1758891848.85 1062969700.55
(3) Presentation of defined benefit plans
Effect of
Item 01/01/2025 changes in the Increase for the Decrease for thescope of period period 30/06/2025
consolidation
1. Basic pension 7459654.22 - 147665865.44 145031381.84 10094137.82
2. Unemployment insurance - - 6040104.21 6040104.21 -
3. Enterprise annuity 1060912.90 - 43905596.05 40600162.39 4366346.56
Total 8520567.12 - 197611565.70 191671648.44 14460484.38
The Company and its domestic subsidiaries participate in the pension insurance and
unemployment insurance plan established by government institutions as required. According to
such plans the Group contributes in proportion to the local government. The Group has
established an enterprise annuity system and accrues and pays the enterprise annuity according to
the enterprise annuity system of the Company and its domestic subsidiaries. In addition to above
contributions the Group has no further payment obligations. The corresponding expenses are
included in profit or loss for the period or the cost of related assets when incurred.
29. Taxes payable
Item 30/06/2025 31/12/2024
Enterprise income tax 669737068.29 576840455.26
VAT 25771043.97 33120467.83
Other taxes 144888094.94 115204803.23
Total 840396207.20 725165726.32
- 111 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
30. Other payables
(1) Presentation of other payables
Item 30/06/2025 31/12/2024
Dividends payable 1451609827.45 132334744.28
Other payables 1650156197.22 1791645568.70
Total 3101766024.67 1923980312.98
(2) Dividends payable
Item 30/06/2025 31/12/2024
Ordinary share dividends 1451609827.45 132334744.28
Including:CHINA MERCHANTS UNION (BVI) LIMITED 532521852.44 -
China Merchants Zhangzhou Development Zone
Co. Ltd. 105526928.23 79792513.04
SINOMART KTS DEVELOPMENT LIMITED 64125000.00 -
Zhanjiang Infrastructure Construction Investment
Group Co. Ltd. 37094597.35 52542231.24
China Merchants Innovation and Technology
(Hong Kong) Co. Ltd. 13705787.23 -
Yiu Lian Dockyards Limited 10389914.81 -
Qingdao Port (Group) Co. Ltd. 3204909.14 -
Shantou Investment Holdings Group Co. Ltd. 2483123.14 -
Qingdao Qingbao Investment Holding Co.Ltd. 2029695.52 -
ORIENTURE HOLDINGS COMPANY LIMITED 1741965.84 -
Others 678786053.75 -
Note: As at 30 June 2025 The Group has a total of RMB 57734806.46 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 payment method has not yet been arranged.
(3) Other payables
(a) Disclosure of other payables by nature
Item 30/06/2025 31/12/2024
Amount payable for construction and quality warranty 780469716.20 769762433.76
Guarantees and deposits 202142551.69 271312443.95
Customer discount 70557691.15 125850513.80
Port construction and security fee 22570668.92 26454133.47
Accrued expenses - 164709813.36
Others 574415569.26 433556230.36
Total 1650156197.22 1791645568.70
- 112 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
30. Other payables - continued
(3) Other payables - continued
(b) Aging analysis of other payables
30/06/202531/12/2024
Aging Amount Proportion（%） Amount Proportion（%）
Within 1 year (including 1 year) 1012416655.57 61.35 1181359579.96 65.94
1-2 years (including 2 years) 186757369.39 11.32 100163555.98 5.59
2-3 years (including 3 years) 125218616.83 7.59 144116749.00 8.04
More than 3 years 325763555.43 19.74 366005683.76 20.43
Total 1650156197.22 100.00 1791645568.70 100.00
(c) Significant other payables aged more than one year
Company name Amount payable Aging Reason for being outstanding
Transport Bureau of Shenzhen Municipality 1-2 years 2-3 years and
(Ports Administration of Shenzhen Municipality) 79679948.79 more than 3 To be paid upon confirmation by both partiesyears
Lac Assal Investment Holding Company Limited 65074559.45 2-3 years To be paid upon confirmation by both parties
Ningbo Daxie Container Terminal Co. Ltd. 36010817.14 1-2 years To be paid upon confirmation by both parties
Sri Lanka Ports Authority 35551347.86 1-2 years 2-3 years andmore than 3 years To be paid upon confirmation by both parties
Shantou Transportation Bureau 31358355.47 more than 3 years To be paid upon confirmation by both parties
Total 247675028.71
31. Non-current liabilities due within one year
Item 30/06/2025 31/12/2024
Long-term borrowings due within one year (Note VIII. 33) 3798735502.79 3271899155.70
Including: Credit borrowings 3615773655.92 3083776769.64
Mortgage borrowings 105900871.93 110904933.53
Guaranteed and mortgage borrowings 77060974.94 77217452.53
Bonds payable due within one year (Note VIII. 34) 6922216731.99 6866623467.03
Lease liabilities due within one year (Note VIII. 35) 91582039.86 101402045.53
Long-term payables due within one year (Note VIII. 36) 253075146.09 206012716.21
Long-term employee benefits payable due within one year
(Note VIII. 37) 44308564.28 44885411.13
Other non-current liabilities due within one year (Note VIII. 40) 15860000.00 15860000.00
Total 11125777985.01 10506682795.60
32. Other current liabilities
(1) Details of other current liabilities
Item 30/06/2025 31/12/2024
Short-term bonds payable 2003475068.49 4020214246.58
Accrued expenses 182106665.53 12367064.92
Others 16474856.47 28620449.22
Total 2202056590.49 4061201760.72
- 113 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
32. Other current liabilities - continued
(2) Changes in short-term bonds payable
Coupon Term of Amount issued in Interest accrued Amortization Is it inName of bond Face value rate Date of issue the bond Amount of issue 01/01/2025 the current period based on par of premiums
Repayment in the
current period 30/06/2025 breach ofvalue or discounts contract
1.51% RMB 2 billion Super
short-term Commercial Paper 2000000000.00 1.51% 2025-05-19 180 days 2000000000.00 - 2000000000.00 3475068.49 - - 2003475068.49 No
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
Total 6000000000.00 6000000000.00 4020214246.58 2000000000.00 31441643.83 - 4048180821.92 2003475068.49
- 114 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Long-term borrowings
Category 30/06/2025 31/12/2024 Range of period-endinterest rate
Credit borrowings 14613351496.42 16987277281.49 1.20%-3.00%
Mortgage borrowings (Note 1) 809335418.34 683224190.76 2.66%-8.25%
Guaranteed and mortgage borrowings (Note 2) 1145669858.54 1183990939.10 2.25%
Total 16568356773.30 18854492411.35
Less: Long-term borrowings due within one year 3798735502.79 3271899155.70 ——
Including: Credit borrowings 3615773655.92 3083776769.64 ——
Mortgage borrowings 105900871.93 110904933.53 ——
Guaranteed and mortgage borrowings 77060974.94 77217452.53 ——
Long-term borrowings due after one year 12769621270.51 15582593255.65 ——
Note 1: On 30 June 2025 the Group obtained long-term loans of RMB 644572019.75 (31
December 2024: RMB 499583188.96) with the land and fixed assets held by
Guangdong Yide Port Co. Ltd. (hereinafter referred to as "Yide Port") and the land held
by Guangdong Shunkong Lingang Development and Construction Co. Ltd. (hereinafter
referred to as " Shunkong Port ") as collateral; Zhoushan RoRo a subsidiary of the
Company obtained a long-term loan of RMB 120529402.35 (31 December 2024:
RMB 124053435.96) by mortgaging its land use right and buildings on ground; PT
Nusantara Pelabuhan Handal Tbk (hereinafter referred to as "NPH") obtained a long-
term loan of RMB 44233996.24 (31 December 2024: RMB 59587565.84) with fixed
assets as collateral.Note 2: On 30 June 2025 Shenzhen Haixing Port Development Co. Ltd. (hereinafter referred to
as "Shenzhen Haixing") obtained a long-term loan of RMB 1145669858.54 (31
December 2024: RMB 1183990939.10) with the land holding property rights as
collateral and guaranteed by China Merchants Port Holdings and Sinotrans South China
Co. Ltd.Details of mortgage and pledged borrowings are as follows:
Company name 30/06/2025 31/12/2024 Collateral and pledge
Bank of China Qianhai Shekou Branch 1145669858.54 1183990939.10 Land use rights of Shenzhen Haixing
Bank of Communications Co. Ltd. Guangdong
Branch、Shenzhen Branch of China Merchants 484445353.10 323411100.05 Land use rights of Shunkong Port
Group Finance Co. Ltd.China Construction Bank Shunde Branch 160126666.65 176172088.91 Land use rights and fixed assets ofYide Port
China Merchants Group Finance Company Limited. 120529402.35 124053435.96 Land use right and buildings onground of Zhoushan RoRo
PT Bank Mandiri (Persero) Tbk 44233996.24 59587565.84 Fixed assets of NPH
Total 1955005276.88 1867215129.86
Note: See Note VIII. 63 for the above mortgages and pledges.- 115 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Bonds payable
(1) Bonds payable
Item 30/06/2025 31/12/2024
5.000% USD 600 million corporate bond 4364608546.85 4374939570.06
4.750% USD 500 million corporate bond 3652409254.32 3661941770.15
4.000% USD 500 million corporate bond 3589768023.18 3599756588.81
2.690% RMB 3 billion corporate bond 3067434246.55 3027415890.40
2.180% RMB 2 billion corporate bond 2037269041.08 2015648219.17
1.980% RMB 2 billion medium term notes 2010632328.77 -
2.800% RMB 1500 million medium term notes 1510241095.89 1531413698.63
2.300% RMB 1200 million medium term notes 1226768219.18 1213081643.84
2.100% RMB 800 million medium term notes 816293698.67 807962739.75
2.680% RMB 500 million medium term notes 503267397.25 510022465.74
Total 22778691851.74 20742182586.55
Less: Bonds payable due within one year 6922216731.99 6866623467.03
Bonds payable due after one year 15856475119.75 13875559119.52
- 116 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Bonds payable - continued
(2) Details of bonds payable
Effect of
translation of
Name of bonds Face value Coupon Date of issue Term of Amount of issue 01/01/2025 Amount issued in
Interest accrued Amortization
based on par of premiums Repayment in financial
Is it in
rate the bond the current period current period statements 30/06/2025 breach ofvalue or discounts denominated in contract
foreign currencies
5.000% USD 600 million corporate
bond USD 600000000.00 5.0000% 2018-08-06 10 years USD 600000000.00 4374939570.06 - 107234302.88 3167404.00 107760882.81 -12971847.28 4364608546.85 No
4.750% USD 500 million corporate
bond USD 500000000.00 4.7500% 2015-08-03 10 years USD 500000000.00 3661941770.15 - 85316064.83 1473350.58 85316064.83 -11005866.41 3652409254.32 No
4.000% USD 500 million corporate
bond USD 500000000.00 4.0000% 2022-06-01 5 years USD 500000000.00 3599756588.81 - 71132294.32 1419395.25 71691564.25 -10848690.95 3589768023.18 No
2.690% RMB 3 billion corporate
bond 3000000000.00 2.6900% 2022-08-29 3 years 3000000000.00 3027415890.40 - 40018356.15 - - - 3067434246.55 No
2.180% RMB 2 billion corporate
bond 2000000000.00 2.1800% 2024-08-22 5 years 2000000000.00 2015648219.17 - 21620821.91 - - - 2037269041.08 No
1.980% RMB 2 billion medium
term notes 2000000000.00 1.9800% 2025-03-24 3 years 2000000000.00 - 2000000000.00 10632328.77 - - - 2010632328.77 No
2.800% RMB 1500 million
medium term notes 1500000000.00 2.8000% 2024-04-01 10 years 1500000000.00 1531413698.63 - 20827397.26 - 42000000.00 - 1510241095.89 No
2.300% RMB 1200 million
medium term notes 1200000000.00 2.3000% 2024-07-10 5 years 1200000000.00 1213081643.84 - 13686575.34 - - - 1226768219.18
No
2.100% RMB 800 million medium
term notes 800000000.00 2.1000% 2024-07-10 3 years 800000000.00 807962739.75 - 8330958.92 - - - 816293698.67
No
2.680% RMB 500 million medium
term notes 500000000.00 2.6800% 2024-04-01 5 years 500000000.00 510022465.74 - 6644931.51 - 13400000.00 - 503267397.25
No
Total —— —— —— —— —— 20742182586.55 2000000000.00 385444031.89 6060149.83 320168511.89 -34826404.64 22778691851.74
Less: Bonds payable due within
one year —— —— —— —— —— 6866623467.03 —— —— —— —— —— 6922216731.99
Bonds payable due after one year —— —— —— —— —— 13875559119.52 —— —— —— —— —— 15856475119.75
- 117 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Lease liabilities
(1) Lease liabilities
Category 30/06/2025 31/12/2024
Lease payment 3446779494.45 3388957333.56
Less: Unrecognized financing cost 1873423424.62 1900348297.52
Total 1573356069.83 1488609036.04
Less: Lease liabilities due within one year 91582039.86 101402045.53
Net leases liabilities 1481774029.97 1387206990.51
(2) Maturity of lease liabilities
Item 30/06/2025
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 169000424.64
2nd year subsequent to the balance sheet date 141402853.90
3rd year subsequent to the balance sheet date 124010608.19
Subsequent years 3012365607.72
Total 3446779494.45
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
36. Long-term payables
(1) Presentation of long-term payables
Item 30/06/2025 31/12/2024
Long-term payables 3913043091.17 3404462444.72
Special payables 6280816.29 6132944.24
Total 3919323907.46 3410595388.96
Less: Long-term payables due within one year 253075146.09 206012716.21
Long-term payables due after one year 3666248761.37 3204582672.75
(2) Long-term payables
Item 30/06/2025 31/12/2024
Terminal management rights (Note) 3651773112.66 3330284743.90
Sale-lease back payment 145113492.82 -
Others 116156485.69 74177700.82
Total 3913043091.17 3404462444.72
Less: Long-term payables due within one year 253075146.09 206012716.21
Long-term payables due after one year 3659967945.08 3198449728.51
- 118 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Long-term payables - continued
(2) 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 30 June 2025 the amount payable for the acquisition of
terminal management rights is RMB 878846345.38.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
30 June 2025 the amount of franchising rights payable was RMB 2772926767.28.
(3) Special payables
Effect of changes
Item 01/01/2025 in the scope of Increase for Decrease for 30/06/2025 Reason
consolidation the period the period
Employee housing fund 6132944.24 - 147872.05 - 6280816.29 Note
Total 6132944.24 - 147872.05 - 6280816.29
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.
(4) Top five long-term payables at the end of the period
Item 30/06/2025 31/12/2024
APPA Port Authority 2772926767.28 2448789645.79
Sri Lanka Ports Authority 886146533.07 883466471.81
Ocean Offshore 2403 Limited 145113492.82 -
China Merchants Finance Leasing (Tianjin) Co. Ltd. 72172850.44 72206327.12
Yihai Kerry Arawana Holdings Co. Ltd. 36683447.56 -
Total 3913043091.17 3404462444.72
- 119 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term employee benefits payable
(1) Long-term employee benefits payable
Effect of changes Payment in Effect of translation of
Item 01/01/2025 in the scope of Increase for current Actuarial Interest financial statements
consolidation the period period adjustment adjustment denominated in
30/06/2025
foreign currencies
Post-employment benefits - net liabilities of defined
benefit plans 593762038.30 4149405.80 7218603.83 12206350.55 - 6834800.02 1548050.47 601306547.87
Termination benefits 49564258.85 - 239999.96 5111426.47 - 199200.00 - 44892032.34
Other long-term benefit (note) 57217158.96 - 2758395.19 9851219.62 - - - 50124334.53
Total 700543456.11 4149405.80 10216998.98 27168996.64 - 7034000.02 1548050.47 696322914.74
Less: Long-term employee benefits payable due within
one year 44885411.13 —— —— —— —— —— —— 44308564.28
Long-term employee benefits payable due after one year 655658044.98 —— —— —— —— —— —— 652014350.46
Note: This represents the employee relocation costs of the Company's subsidiary Shantou Port in connection with land acquisition and reservation.- 120 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term employee benefits payable - continued
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item Current period Prior period
I. Opening balance 593762038.30 509605071.25
II. Defined benefit cost included in profit or loss for the period 14053403.85 6202972.98
1. Current service cost 7218603.83 132972.96
2. Past service cost - -
3. Interest adjustment 6834800.02 6070000.02
III. Defined benefit cost included in other comprehensive income 1548050.47 -295564.04
1. Actuarial gains - -
2. Effect of exchange rate changes 1548050.47 -295564.04
IV. Other changes -8056944.75 4877999.72
1. Benefits paid -12206350.55 -12308871.63
2. Changes in the scope of consolidation 4149405.80 17186871.35
V. At the end of the period 601306547.87 520390479.91
The Company's subsidiaries provide the registered retirees and in-service staff with
supplementary post-employment benefit plans.The Group hired a third-party actuary to estimate the present value of the above-mentioned
retirement benefit plan obligations in an actuarial manner based on the expected cumulative
welfare unit method. The Group recognizes the liabilities based on the actuarial results. The
relevant actuarial gains or losses are included in other comprehensive income and cannot be
reclassified into profit or loss in the future. Past service costs are recognized in profit or loss for
the period in which the plan is revised. The net interest is determined by multiplying the defined
benefit plan net debt or net assets by the appropriate discount rate.- 121 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Provisions
Effect of
translation of
Item 01/01/2025 Increase for Decrease for financialthe period the period statements 30/06/2025 Reason
denominated in
foreign currencies
Pending litigation 159435795.50 2663832.88 91896139.87 8713311.08 78916799.59 Note
Total 159435795.50 2663832.88 91896139.87 8713311.08 78916799.59
Note: This represents the estimated compensation amount RMB 78916799.59 that the
Company's subsidiary TCP may need to pay due to the pending litigation.
39. Deferred income
Effect of changes
Item 01/01/2025 in the scope of Increase for Decrease for
consolidation the period the
30/06/2025
period
Government grants 1268975316.61 - 4587059.60 25333879.71 1248228496.50
Total 1268975316.61 - 4587059.60 25333879.71 1248228496.50
(1) Government grants included in deferred income
Category of Amount included in
government grants 30/06/2025 current profit and
Amount refunded Reason for return
loss this period
Government grants 1248228496.50 25333879.71 - Not applicable
Total 1248228496.50 25333879.71 - Not applicable
- 122 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
40. Other non-current liabilities
Effect of translation
Increase due to
Item 01/01/2025 change of Increase for the Decrease for the
of financial
period period statements 30/06/2025consolidation scope denominated in
foreign currencies
Actuarial cost for the calculation of pension benefit
difference for the public security bureau staff (Note 1) 194879858.67 - - 5819141.01 - 189060717.66
Others 3700396.17 - 574148.18 - - 4274544.35
Total 198580254.84 - 574148.18 5819141.01 - 193335262.01
Less: Other non-current liabilities due within one year 15860000.00 - —— —— - 15860000.00
Including: Actuarial cost for the calculation of pension
benefits difference for the public security 15860000.00 - —— —— - 15860000.00
bureau staff
Related party borrowings - - —— —— - -
Other non-current liabilities due after one year 182720254.84 - —— —— - 177475262.01
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.- 123 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Share capital
01/01/202530/06/2025
Name of investor Investment amount Proportion
Increase for the Decrease for the Proportion（% period period Investment amount） （%）
China Merchants Port Investment
Development Company Limited 1148648648.00 45.92 - - 1148648648.00 45.92
Zhejiang Seaport Investment and
Operation Group Co. Ltd. 576709537.00 23.06 - - 576709537.00 23.05
China Merchants Gangtong
Development (Shenzhen) 370878000.00 14.83 - - 370878000.00 14.83
Co. Ltd.Infrastructure Investment Fund
Management Co. Ltd. –
infrastructure Investment Fund 64850182.00 2.59 - - 64850182.00 2.59
Partnership (Limited
Partnership)
Broadford International Limited 55314208.00 2.21 - - 55314208.00 2.21
China Africa Development Fund
Co. Ltd. 15610368.00 0.62 - - 15610368.00 0.62
Others 269297538.00 10.77 199900.00 - 269497438.00 10.78
Total 2501308481.00 100.00 199900.00 - 2501508381.00 100.00
42. Capital Reserve
Amount at the
Item beginning of the Increase Decrease Amount at the end of
period the period
For the period from 1 January to 30 June 2025
I. Capital premium 36709528363.44 3341011.41 - 36712869374.85
Including: Capital contributed by investors 17108331780.58 3341011.41 - 17111672791.99
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 - - 1673519576.38
II. Other capital reserve 653453468.23 - 140480321.43 512973146.80
Including: Transfer from capital reserve under the previous
accounting rules -2781133.00 - - -2781133.00
Unexercised share-based payment (Note) 506305.80 - 442650.00 63655.80
Others 655728295.43 - 140037671.43 515690624.00
Total 37362981831.67 3341011.41 140480321.43 37225842521.65
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
Others 619852756.98 35875538.45 - 655728295.43
Total 37076846803.06 292538079.61 6403051.00 37362981831.67
Note: Refer to Note XVI. for details.- 124 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Other comprehensive income
Changes for the period
Less: Amount Less: Amount
included in other included in other
comprehensive comprehensive Attributable to non-
Item 01/01/2025 Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the controlling Other changes 30/06/2025
period period but period but tax expenses Company net of tax shareholders net of
transferred to profit transferred to tax
or loss in the retained earnings in
current period the current period
For the period from 1 January to 30 June 2025
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss -125708734.97 10733832.29 - - - 3921414.88 6812417.41 - -121787320.09
Including: Changes arising from remeasurement of defined
benefit plans -27162681.92 3260000.00 - - - 208897.14 3051102.86 - -26953784.78
Other comprehensive income that can't be
reclassified to profit or loss under equity method -157659266.07 7473832.29 - - - 3712517.74 3761314.55 - -153946748.33
Changes in fair value of other equity instruments 59113213.02 - - - - - - - 59113213.02
II. Other comprehensive income that will be reclassified
subsequently to profit or loss -1432672502.48 1594865234.50 - - - 641828141.27 953037093.23 - -790844361.21
Including: Other comprehensive income recognised under the
equity method -401677243.85 472024602.90 - - - 229359310.24 242665292.66 - -172317933.61
Translation differences of financial statements
denominated in foreign currencies -1030995258.63 1122840631.60 - - - 412468831.03 710371800.57 - -618526427.60
Total other comprehensive income -1558381237.45 1605599066.79 - - - 645749556.15 959849510.64 - -912631681.30
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
- 125 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Specific reserve
Item 01/01/2025 Increase Decrease 30/06/2025
Safety production cost 40074647.27 29422790.99 10515851.63 58981586.63
45. Surplus reserve
The period from 1 January to 30 June 2025
Item 01/01/2025 Increase Decrease 30/06/2025
Statutory surplus reserve 1249537330.50 - - 1249537330.50
2024
Item 01/01/2024 Increase Decrease 31/12/2024
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 30 June 2025 the Company's
accumulated statutory surplus reserve has reached 50% of its registered capital.
46. Retained earnings
Proportion of
Item Amount appropriation or
allocation
For the period from 1 January to 30 June 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
Add: Net profit of the period attributable to shareholders of the Company 2626638199.47
Retained earnings carried forward from other comprehensive income -
Others 454446.93
Less: Transfer to statutory surplus reserve in the current period -
Transfer to discretionary surplus reserve in the current period -
Ordinary shares' dividends payable 1839836697.18 Note 1
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to the National Council for Social Security Fund of the PRC -
Distribution to holders of other equity instruments -
Others -
Retained earnings at the end of the period 22745034528.33
- 126 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
46. Retained earnings - continued
Proportion of
Item Amount appropriation or
allocation
For the year ended 31 December 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
Add: Net profit of the year attributable to shareholders of the Company 4516301317.16
Retained earnings carried forward from other comprehensive income -
Less: 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 shareholders' meeting on 23 May 2025 the Company
plans to distribute cash dividends of RMB 7.40 (inclusive of tax) for every 10 shares
totalling RMB 1842769687.18 on the basis of 2490229307 shares which excluded
11155474 shares held in the share repurchase special account from the latest total share
capital of 2501384781 shares. As of 30 June 2025 due to the exercise of stock options
granted under the equity incentive plan the total share capital of the Company has been
changed to 2501508381 shares. After deducting the 15242574 shares held in the
repurchase special account the total is 2486265807 shares and based on that the cash
dividend distributed has been changed to RMB 1839836697.18.
47. Operating income and operating costs
(1) Details of operating income and operating costs
Current period Prior period
Item
Income Costs Income Costs
Principal operation 8382712282.79 4487845467.23 7883718886.49 4278633923.81
Other operations 85779093.29 108418625.27 91474197.15 112235371.15
Total 8468491376.08 4596264092.50 7975193083.64 4390869294.96
- 127 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. 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
income Operating costs
Operating
income Operating costs
Operating Operating
income Operating costs income Operating costs
Mainland China Hong Kong
and Taiwan area 5037474559.53 3065854248.06 270611726.06 151724369.69 85779093.29 108418625.27 5393865378.88 3325997243.02
- Pearl River Delta 3519011226.80 1776103190.68 193338185.68 114524391.72 85779093.29 108418625.27 3798128505.77 1999046207.67
- Yangtze River Delta 137755.21 4251608.20 - - - - 137755.21 4251608.20
- Bohai Rim 13986156.15 6844764.09 77273540.38 37199977.97 - - 91259696.53 44044742.06
- Other areas 1504339421.37 1278654685.09 - - - - 1504339421.37 1278654685.09
Other countries 3040042023.22 1246331683.03 34583973.98 23935166.45 - - 3074625997.20 1270266849.48
Total 8077516582.75 4312185931.09 305195700.04 175659536.14 85779093.29 108418625.27 8468491376.08 4596264092.50
- 128 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. 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 recognizes
revenue using straight-line method. At the same time the Group is primarily responsible for the
above services and generally does not have any commitment to the amount of money expected to
be returned to the customer.Part of the Group's handling contracts are established with discount terms i.e. the customers
whose business volume reaches agreed level are granted with preferential charge rate or discount.At the end of the period as the business volume finally realized within the contract period is
uncertain the contract consideration is subject to variable factors. The management includes this
part of discount in contract liabilities other current liabilities and provisions. At the end of the
period the variable considerations arising from sales discount are set out in Note VIII. 27、Note
VIII. 32 and Note VIII. 38.
(4) Descriptions on allocation to remaining performance obligations
At the end of the period the amount of revenue corresponding to the performance obligations
which the Group has entered into a contract for but has not fulfilled or completely fulfilled mainly
included the contract liabilities of RMB 349057215.91 of which RMB 121733239.76 is
expected to be recognized as revenue in 2025; and RMB 227323976.15 is expected to be
recognized as revenue in 2026 and subsequent years.
48. Taxes and surcharges
Item Current period Prior period
Property tax 38685303.24 37432602.44
Land use tax 17434069.64 17922726.00
City construction and maintenance tax 4696513.64 5333385.15
Education surcharges and local education surcharges 3534408.66 3987112.95
Stamp duty 1572336.14 1772162.02
Others (Note) 110292525.17 97135500.20
Total 176215156.49 163583488.76
Note: Others mainly represent the social contribution tax and tax on services borne by TCP a
subsidiary of the Company totalled BRL 83744490.70 (equivalent to RMB
104316324.84) for the period.
- 129 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
49. General and administrative expenses
Item Current period Prior period
Employee benefits 576990389.64 620704850.52
Depreciation expenses 37655932.96 35571367.42
Fees paid to agencies 16517711.11 18415907.98
Amortization of intangible assets 16989576.27 27872655.34
Others 110919499.46 105613974.92
Total 759073109.44 808178756.18
50. Research and development expenses
Item Current period Prior period
Employee benefits 74754807.75 59561003.92
Direct materials and outsourced R&D 22485452.99 22767018.47
Depreciation and amortization 2138974.74 1956675.62
Others 7751911.07 448263.29
Total 107131146.55 84732961.30
51. Financial expenses
Item Current period Prior period
Interest expenses 1036682027.86 1169402497.01
Including: Bank and other borrowings 392666154.34 593824100.83
Bond interest and bill discount 422786996.38 387426105.66
Interest expenses of terminal management
right (Note) 131215913.75 118016249.69
Interest expenses of lease liabilities 55654549.51 26893252.91
Other interest expenses 13479344.44 22305423.35
Less: Capitalized interest expenses 20879069.44 20937364.57
Less: Interest income 200788693.82 240157542.78
Net exchange loss 16212019.97 84715364.32
Others 5345702.01 3189819.83
Total 836571986.58 996212773.81
Note: Details are set out in Note VIII. 36.
52. Other income
Item Current period Prior period Whether it isgovernment subsidy
Business development subsidy 94882937.73 78537483.56 Yes
Transfer from deferred income
(Note VIII. 39) 25333879.71 25422775.68 Yes
Others 4945738.59 4435948.63 ——
Total 125162556.03 108396207.87 ——
Including: Government grants 123816690.60 106509287.41 ——
- 130 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
53. Investment income
(1) Details of investment income:
Item Current period Prior period
Income from long-term equity investments under equity method 3606506212.05 3357745272.28
Including: Income from long-term equity investments of
associates under equity method 3448250127.44 3173207222.52
Income from long-term equity investments of joint
ventures under equity method 158256084.61 184538049.76
Investment income from financial assets held for trading 42352582.82 35265732.57
Dividend income from investments in other equity instruments 120000.00 -
Investment income from other non-current financial assets - 44838893.61
Others 3856538.50 -
Total 3652835333.37 3437849898.46
54. Gains from changes in fair value
Item Current period Prior period
Financial assets held for trading 21035446.60 22475938.61
Other non-current financial assets - 443376957.50
Including: Financial assets at fair value through profit or loss - 443376957.50
Total 21035446.60 465852896.11
55. Reversal of credit impairment
Item Current period Prior period
I. Credit impairment of accounts receivable (“-” for losses) 5740580.39 -461759.95
II. Credit impairment of other receivables (“-” for losses) -961479.46 316195849.66
III. Credit impairment of long-term receivables (“-” for losses) -85299.16 -7587.78
Total 4693801.77 315726501.93
- 131 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
56. Impairment losses
Item Current period Prior period
Reversal of impairment losses of inventories 1621.20 -
Total 1621.20 -
57. Gains from asset disposals
Amount included in non-
Item Current period Prior period recurring profit or loss
for the current period
Gains from disposal of non-current assets 6688854.69 884468.18 6688854.69
Including: Gains from disposal of intangible
assets 6084102.84 - 6084102.84
Gains from disposal of
fixed assets 571354.19 679465.46 571354.19
Others 33397.66 205002.72 33397.66
Total 6688854.69 884468.18 6688854.69
58. Non-operating income
Amount included in
Item Current period Prior period non-recurring profit orloss for the current
period
Compensation received for violation of
contracts 5238732.17 1173484.75 5238732.17
Gains from retirement or damage of
non-current assets 1760337.51 1566507.26 1760337.51
Including: Gains from retirement
or damage of fixed assets 1760337.51 1566507.26 1760337.51
Exempted current accounts 429567.31 824983.50 429567.31
Insurance claims - 800133.81 -
Land rent deduction - 52700.54 -
Others 10143357.00 13120624.87 10143357.00
Total 17571993.99 17538434.73 17571993.99
- 132 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
59. Non-operating expenses
Amount included in
Item Current period Prior period non-recurring profitor loss for the
current period
Litigation loss 3589845.46 - 3589845.46
Losses on retirement of non-current
assets 3586928.26 4703003.88 3586928.26
Including: Losses on retirement
or damage of fixed assets 3586928.26 4703003.88 3586928.26
Expenditure on public welfare
donations 543413.08 340995.85 543413.08
Compensation and liquidated damages 242399.77 1801256.48 242399.77
Others 4826713.26 26854371.88 4826713.26
Total 12789299.83 33699628.09 12789299.83
60. Borrowing costs
Item Capitalization rate Amount capitalized
Construction in progress
Phase I of the second phase of the wharf project in the local
operation area of Shunkong Port Liaoge Mountain Port Area 2.78% 6814983.27
Zhanjiang Port Baoman Port Area Container Terminal
Phase I Expansion Project 2.65% 3833013.50
Hambantota Port subsequent ongoing construction projects 7.08% 1781885.21
Machong Port Area Berth 2 # and 3 # Project Bulk
Grain Warehouse Phase III Expansion Project 2.40% 643272.54
Other non-current assets
Advances for channels 4.35% 7805914.92
Sub-total 20879069.44
Interest expenses included in profit or loss for the period
(Excludes interest expense on terminal operating rights and 828932495.16lease liabilities）
Total 849811564.60
Note: The capitalization rate is calculated and determined according to the weighted average
interest rate of general borrowings
- 133 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
61. Translation of foreign currencies
Item Current period
Exchange differences included in profit or loss for the period 16212019.97
Total 16212019.97
62. Income tax expenses
Item Current period Prior period
Current income tax expenses 686714642.78 576566050.41
Deferred income tax expenses 41694166.54 227952828.10
Total 728408809.32 804518878.51
Reconciliation between income tax expense and accounting profit is as follows:
Item Current period
Total profit 5808436192.34
Income tax expenses calculated at 25% 1452109048.09
Effect of non-deductible costs expenses and losses 174019153.40
Accrued income tax 257250626.34
Effect of deductible temporary differences and deductible losses
for which deferred tax assets are not recognized in the year 73441412.05
Effect of tax-free income (Note) -704718084.55
Effect of tax incentives and changes in tax rate -375207351.41
Effect of different tax rates of subsidiaries operating in other jurisdictions -157401218.45
Effect of utilizing deductible losses for which deferred tax assets
were not recognized in prior period -4593569.74
Effect of adjustments to income tax of prior year 722942.70
Others 12785850.89
Income tax expenses 728408809.32
Note: This mainly represents the tax effect of income from investments in joint ventures and
associates.- 134 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Assets with restricted ownership and use right
30/06/202531/12/2024
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) 91732148.41 91732148.41 interest receivable not performance bond 115331146.22 115331146.22 interest receivable not performance bondactually received frozen funds etc actually received frozen funds etc
Fixed assets (Note 2) 942892996.29 627351310.21 Mortgage Mortgage borrowings 551053503.71 467531821.78 Mortgage Mortgage borrowings
Intangible assets
(Note 3) 751650703.62 611776115.79 Mortgage Mortgage borrowings 624297693.92 624297693.92 Mortgage Mortgage borrowings
Total 1786275848.32 1330859574.41 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. 23 and Note VIII. 33.- 135 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Provision for impairment of assets and provision for bad debts
Effect of Effect of translation
changes in the Provision for the Reversal for the Write-off and Transfer-out due
Other Other
Item 01/01/2025 charge-off for to sale in the increases decreases
of financial
scope of period period the period current period for the for the
statements 30/06/2025
consolidation period period denominated inforeign currencies
Provision for bad debts of accounts
receivable 88963445.09 - 1419529.15 -7160109.54 - - - - 1601188.77 84824053.47
Provision for bad debts of other receivables 565593638.90 - 966666.18 -5186.72 - - - - 54336543.81 620891662.17
Provision for decline in value of inventories 1153436.72 - - -1621.20 - - - - -7255.50 1144560.02
Provision for bad debts of long-term
receivables 1171441.95 - 85311.89 -12.73 - - - - - 1256741.11
Provision for impairment of long-term equity
investments 335422262.62 - - - - - - - -33786.19 335388476.43
Provision for impairment of fixed assets 213290383.06 - - - - - - 42717.28 119677.03 213367342.81
Provision for impairment of construction in
progress 778478.53 - - - - - - - -10978.93 767499.60
Provision for impairment of intangible assets 57010270.07 - - - - - 42717.28 - - 57052987.35
Provision for impairment of goodwill 970663044.33 - - - - - - - - 970663044.33
Other non-current assets 88524171.44 - - - - - - - - 88524171.44
Total 2322570572.71 - 2471507.22 -7166930.19 - - 42717.28 42717.28 56005388.99 2373880538.73
- 136 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Items in cash flow statement
(1) Cash relating to operating activities
Proceeds from other operating activities
Item Current period Prior period
Interest income 187103044.10 179018389.54
Guarantees and deposits 17300555.93 21859387.49
Government grants 13699206.43 21136532.52
Rentals 772764.05 2021910.78
Insurance indemnities 36776.08 932383.16
Receipt of operating compensation - 316356000.00
Others 215419089.12 217476013.97
Total 434331435.71 758800617.46
Payment for other operating activities
Item Current period Prior period
Payment of operating costs and management expenses and other
daily operating related expenditures 86994106.72 101884227.23
Advance payment 24805804.42 72413451.97
Guarantees and deposits 18129368.75 17564575.29
Rentals 3229287.55 13477881.80
Port charges - 950402.70
Others 259964509.01 177708320.65
Total 393123076.45 383998859.64
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item Current period Prior period
Recovered structured deposits 22390000000.00 11200000000.00
Dividends received 1340132233.83 1992633200.33
Total 23730132233.83 13192633200.33
- 137 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Items in cash flow statement - continued
(2) Cash relating to investing activities - continued
Cash payments relating to significant investing activities
Item Current period Prior period
Purchase of structured deposits 21535000000.00 9810000000.00
Purchase of long-term assets 1057042867.97 915709052.44
Total 22592042867.97 10725709052.44
Proceeds from other investing activities
Item Current period Prior period
Collection of marine area usage fee by Shantou Port on behalf
of other paties 123815461.48
-
Collection of marine area usage fee by Dongguan -
Shenchiwan Port Affairs Co.Ltd. 60469329.00
Others 8997067.86 -
Total 193281858.34 -
Payment for other investing activities
Item Current period Prior period
Payment of marine area usage fee by Shantou Port 123613360.00 -
Payment of taxes on land acquisition by ASJ - 259533828.27
Others 2095513.81 545760.17
Total 125708873.81 260079588.44
(3) Cash relating to financing activities
Proceeds from other financing activities
Item Current period Prior period
Sale and leaseback proceeds 136505690.00 40000000.00
Receipts from Shantou Port shareholder's advance payment of
marine area usage fees 111500000.00 -
Others 7586443.41 308276.99
Total 255592133.41 40308276.99
- 138 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Items in cash flow statement - continued
(3) Cash relating to financing activities - continued
Payment for other financing activities
Item Current period Prior period
Repurchase shares of the Company 269263918.22 -
Payment for the Company's acquisition of non-controlling
interests of CM Port - 147607116.30
Payment for lease 55860789.66 142264009.77
Others 55924577.76 1383669.41
Total 381049285.64 291254795.48
Changes in liabilities arising from financing activities
Increase for the period Decrease for the period
Item 01/01/2025 Cash changes Non-cash Cash changes Non-cash 30/06/2025changes changes
Short-term borrowings 12791242141.69 4286935768.40 197008333.79 4819817641.56 150762869.62 12304605732.70
Long-term borrowings 15582593255.65 980838686.70 28223006.66 - 3822033678.50 12769621270.51
Non-current liabilities
due within one year 10506682795.60 - 4593200578.39 3952580509.54 21524879.44 11125777985.01
Bonds payable 13875559119.52 2000000000.00 - - 19083999.77 15856475119.75
Lease liabilities 1387206990.51 - 157797414.22 - 63230374.76 1481774029.97
Long-term payables 3204582672.75 173164189.40 342292965.26 - 53791066.04 3666248761.37
Dividends payable 132334744.28 - 3731376497.76 2412101414.59 - 1451609827.45
Other current liabilities 4020214246.58 2000000000.00 31441643.83 4048180821.92 - 2003475068.49
Total 61500415966.58 9440938644.50 9081340439.91 15232680387.61 4130426868.13 60659587795.25
(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 period but have an impact on the enterprise's financial position or may affect
the enterprise's cash flows in the future and their financial effects.- 139 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Supplementary information Current period Prior period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 5080027383.02 5039645709.31
Add: Impairment losses -1621.20 -
Reversal of credit impairment("-" for gains) -4693801.77 -315726501.93
Depreciation of fixed assets 1015024918.96 954005882.47
Depreciation of investment properties 63045293.72 91661825.39
Depreciation of right-of-use assets 132500839.22 170714405.05
Amortization of intangible assets 363088740.75 336084653.13
Amortization of long-term deferred expenses 50060940.14 50836674.54
Gains from disposal of fixed assets intangible assets
and other long-term assets -6688854.69 -884468.18
Losses on retirement of fixed assets intangible assets
and other long-term assets 1826590.75 3136496.62
Losses rising from changes in fair value ("-" for gains) -21035446.60 -465852896.11
Financial expenses 1026273978.91 1219468426.80
Investment loss ("-" for income) -3652835333.37 -3437849898.46
Decrease in deferred tax assets ("-" for increase) -6410580.52 9960366.69
Increase in deferred tax liabilities 48104747.06 217992461.41
Decrease in inventories ("-" for increase) -45929114.96 -78955004.79
Decrease in operating receivables ("-" for increase) -1041823983.84 -697580401.64
Increase in operating payables ("-" for decrease) 8158621.21 25725974.73
Net cash inflow from operating activities 3008693316.79 3122383705.03
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 period 14904558106.75 17306212560.80
Less: Opening balance of cash 16515069554.91 16018613631.10
Add: Cash equivalents at the end of the period - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents -1610511448.16 1287598929.70
(2) Cash and cash equivalents at the end of the period
Item 30/06/2025 31/12/2024
I. Cash 14904558106.75 16515069554.91
Including: Cash on hand 179448.28 457486.90
Bank deposits available for payment at any time 14835039302.07 16444638576.67
Other monetary funds available for payment at any time 69339356.40 69973491.34
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the period 14904558106.75 16515069554.91
- 140 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Supplementary information to the cash flow statement - continued
(3) Payment for dividends profit distributions or interest
Item Current period Prior period
Profit distributions 1839908417.00 -
Cash paid for interest repayment 818859469.92 978247808.88
Dividends and profits paid to non-controlling shareholders
of subsidiaries 572192997.59 132165604.67
Total 3230960884.51 1110413413.55
(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.- 141 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Foreign currency monetary items
Item Foreign currency at the RMB at the end of theend of the period Exchange rate period
Cash and bank balances 3587379401.28
Including: HKD 27360974.33 0.9130 24980022.34
USD 382712835.68 7.1668 2742826350.75
RMB 560779913.11 1.0000 560779913.11
EUR 29839857.37 8.3224 248339228.98
AUD 2247664.18 4.6510 10453886.10
Accounts receivable 619374759.99
Including: USD 3934311.12 7.1668 28196420.93
EUR 71034598.08 8.3224 591178339.06
Other receivables 1749321619.39
Including: HKD 12919725.93 0.9130 11795451.38
USD 85313183.33 7.1668 611422522.29
EUR 3175548.29 8.3224 26428183.09
RMB 1099625609.72 1.0000 1099625609.72
AUD 10718.75 4.6510 49852.91
Long-term receivables 1209684199.11
Including: HKD 2366680.97 0.9130 2160732.39
USD 1023180.69 7.1668 7332931.37
EUR 25732630.81 8.3224 214157246.65
AUD 212004577.23 4.6510 986033288.70
Short-term borrowings 1870000000.00
Including: RMB 1870000000.00 1.0000 1870000000.00
Accounts payable 48390381.98
Including: HKD 1972327.51 0.9130 1800695.57
USD 589732.67 7.1668 4226496.10
EUR 5090261.26 8.3224 42363190.31
Other payables 561027218.98
Including: HKD 48618572.16 0.9130 44387784.01
USD 51217584.39 7.1668 367066183.81
EUR 14902959.55 8.3224 124028390.56
RMB 25544860.60 1.0000 25544860.60
Non-current liabilities due
within one year 4732557871.26
Including: USD 523289432.47 7.1668 3750310704.60
RMB 982247166.66 1.0000 982247166.66
Long-term borrowings 980000000.00
Including: RMB 980000000.00 1.0000 980000000.00
Bonds payable 7856475119.75
Including: USD 1096231947.28 7.1668 7856475119.75
Long-term payables 2160732.39
Including: HKD 2366680.97 0.9130 2160732.39
- 142 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Leases
(1) Lessor under operating lease
Item Amount
I. Operating income
Lease income 144880756.97
Including: Income related to variable lease payments that are not included
in lease receipts -
II. Undiscounted lease receipts received after the balance sheet date 551776970.32
1st year 183437222.16
2nd year 114240256.82
3rd year 90420575.47
4th year 54337961.11
5th year 24157183.89
Over 5 years 85183770.87
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 0.5 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 55654549.51
Short-term lease expenses that are accounted for using simplified approach
and included in cost of related assets or profit or loss for the period 67888428.11
Expenses on leases of low-value assets (exclusive of expenses on short-term leases
of low-value assets) that are accounted for using simplified approach and included in -
cost of related assets or profit or loss for the period
Variable lease payments that are included in cost of related assets or profit or loss
but not included in measurement of lease liabilities -
Including: The portion arising from sale and leaseback transactions -
Income from sub-lease of right-of-use assets 4048971.86
Total cash outflows relating to leases 83228331.74
Losses from sale and leaseback transactions 1514667.72
Cash inflows from sale and leaseback transactions 136505690.00
Cash outflows from sale and leaseback transactions 1569286.11
Others -
- 143 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. 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 three 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 recognized as a long-term payable when the amount is received
from the lessor and the difference between the original selling price and the repurchase price is
recognized as interest expenses.(IX) R&D EXPENDITURE
1. Disclosure by nature of expenses
Item Current period Prior period
Employee benefits 77372354.87 60963940.03
Direct materials and outsourced R&D 28784861.19 30948150.57
Depreciation and amortisation 2276229.67 1989207.01
Others 10671434.74 1209359.37
Total 119104880.47 95110656.98
Including: R&D expenditure recorded as expenses 107131146.55 84732961.30
R&D expenditure capitalised 11973733.92 10377695.68
- 144 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 01/01/2025 Internal Recognised as fixed Recognised as Transferred to profit 30/06/2025
development costs assets intangible assets or loss for the period
ePort comprehensive service
platform 43805653.86 - - 43805653.86 - -
Other R&D projects 19589399.83 12125318.89 1014917.78 1572849.78 151584.97 28975366.19
Total 63395053.69 12125318.89 1014917.78 45378503.64 151584.97 28975366.19
- 145 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 period. 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 period.
3. Reverse purchase
The Group has no reverse purchase in the current period.
4. Disposal of subsidiaries
The Group has no disposal of subsidiaries in the current period.
5. Change in consolidation scope for other reasons
The Group has not changed the consolidation scope for other reasons in the current period.- 146 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group - Major subsidiaries
Principal Registered capital Shareholding ratio
Name of the subsidiary place of Place of Nature of (RMB'0000 of the Company Acquisition method
business incorporation business unless otherwise (%)specified) Direct Indirect
Shenzhen Chiwan International Freight Agency Shenzhen Shenzhen Logistics support
Co. Ltd. China 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
Hong Kong ") holding
HKD 1000000 100.00 - Established through investment
Dongguan Shenchiwan Port Affairs Co. Ltd. Dongguan Dongguan Logistics supportChina China services 45000.00 85.00 - Established through investment
Dongguan Shenchiwan Wharf Co. Ltd. Dongguan Dongguan Logistics supportChina China services 40000.00 100.00 - Established through investment
Shenzhen Chiwan Harbor Container Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 28820.00 100.00 -
Business combination involving
enterprises under common control
Shenzhen Chiwan Port Development Co. Ltd. Shenzhen Shenzhen Logistics support 10000.00 100.00 - Business combination involvingChina China services enterprises under common control
Chiwan Container Terminal Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services USD 95300000 55.00 20.00
Business combination involving
enterprises under common control
Shenzhen Chiwan Tugboat Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 2400.00 100.00 -
Business combination involving
enterprises under common control
Chiwan Shipping (Hong Kong) Limited HK China HK China Logistics support HKD 800000 100.00 - Business combination involvingservices enterprises under common control
CM Port (Note 1) HK China HK China Investment HKD 0.37 49.30 Business combination involvingholding 48730938800 enterprises under common control
China Merchants Bonded Logistics Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 70000.00 40.00 60.00
Business combination involving
enterprises under common control
China Merchants International Technology Co.Ltd. (hereinafter referred to as ‘CM International Shenzhen Shenzhen IT service 8784.82 56.26 43.74 Business combination involving
Tech') China China enterprises under common control
China Merchants International (China) Investment Shenzhen Shenzhen Investment
Co. Ltd. China China holding USD67400000 - 100.00
Business combination involving
enterprises under common control
China Merchants International Container Terminal Qingdao Logistics support
(Qingdao) Co. Ltd. China Qingdao China services USD 206300000 - 100.00
Business combination involving
enterprises under common control
China Merchants Container Services Limited HK China HK China Logistics support HKD 500000 - 100.00 Business combination involvingservices enterprises under common control
China Merchants Port (Shenzhen) Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 55000.00 - 100.00
Business combination involving
enterprises under common control
Shenzhen Haiqin Project Management Co. Ltd. Shenzhen Shenzhen
Engineering
supervision 1000.00 - 100.00 Business combination involvingChina China service enterprises under common control
Antonje Wharf Storage Service (Shenzhen) Shenzhen Shenzhen Preparation forthe warehousing HKD 100000000 - 100.00 Business combination involvingCo. Ltd. China China project enterprises under common control
ASJ Shenzhen Shenzhen
Preparation for
China China the warehousing HKD 520000000 - 100.00
Business combination involving
project enterprises under common control
China Merchants International Terminal (Qingdao) Qingdao Logistics support Business combination involving
Co. Ltd. China Qingdao China services USD 44000000 - 90.10 enterprises under common control
CICT Sri Lanka Sri Lanka Logistics supportservices USD 150000100 - 85.00
Business combination involving
enterprises under common control
Magang Godown & Wharf Shenzhen Shenzhen Logistics support 33500.00 - 100.00 Business combination involvingChina China services enterprises under common control
Zhangzhou China Merchants Tugboat Co. Ltd. Zhangzhou Zhangzhou Logistics supportChina China services 1500.00 - 100.00
Business combination involving
enterprises under common control
Zhangzhou China Merchants Port Co. Ltd. Zhangzhou Zhangzhou Logistics supportChina China services 122700.000 - 60.00
Business combination involving
enterprises under common control
Zhangzhou Investment Promotion Bureau
Xiamenwan Port Affairs Co. Ltd. (hereinafter Zhangzhou Zhangzhou Logistics support 44450.00 - 31.00 Business combination involving
referred to as "Xiamenwan Port Affairs") (Note 2) China China services enterprises under common control
Shekou Container Terminals Ltd. Shenzhen Shenzhen Logistics supportChina China services HKD 618201200 - 100.00
Business combination involving
enterprises under common control
Shenzhen Lianyunjie Container Terminals Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 60854.90 - 100.00
Business combination involving
enterprises under common control
Anxunjie Container Terminals (Shenzhen) Shenzhen Shenzhen Logistics support
Co. Ltd. China China services 127600.00 - 100.00
Business combination involving
enterprises under common control
Anyunjie Port Warehousing Service (Shenzhen) Shenzhen Shenzhen Preparation for
Co. Ltd. China China the warehousing 6060.00 - 100.00
Business combination involving
project enterprises under common control
- 147 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 Place of Nature of Registered capital
Shareholding ratio
Name of the subsidiary place of incorporation business (RMB'0000 unless
of the Company Acquisition method
business otherwise specified) (%)Direct Indirect
Shenzhen Haixing Shenzhen Shenzhen Logistics supportChina China services 53072.92 - 67.00
Business combination involving
enterprises under common control
Shenzhen Lianyongtong Terminal Co. Ltd. Shenzhen Shenzhen Logistics support Business combination involvingChina China services USD 7000000 - 100.00 enterprises under common control
Yide Port Foshan China Foshan China Logistics support 21600.00 51.00 - Business combination involvingservices enterprises under common control
Mega SCT BVI BVI Investmentholding USD 120.00 - 80.00
Business combination involving
enterprises under common control
Oasis King International Limited BVI BVI Investment Business combination involvingholding USD 100.00 - 100.00 enterprises under common control
Lome Container Terminal S.A. (Note 3) Republic of Republic of Logistics supportTogo Togo services XOF 200000000 - 100.00
Business combination involving
enterprises under common control
Gainpro Resources Limited BVI BVI Investmentholding USD 1.00 - 76.47
Business combination involving
enterprises under common control
Hambantota International Port Group (Private)
Limited Sri Lanka Sri Lanka
Logistics support
services USD 1145480000 - 85.00
Business combination involving
enterprises under common control
Shantou port Shantou Logistics supportChina Shantou China services 12500.00 - 60.00
Business combination involving
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 Business combination involvingChina China consulting 4000.00 - 75.00 enterprises under common control
China Tally ShantouChina Shantou China
Logistics support Business combination not involving
services 380.00 - 62.50 enterprises under common control
Shenzhen Lianda Tugboat Co. Ltd. Shenzhen Shenzhen Logistics support 3000.00 - 60.29 Business combination involvingChina China services enterprises under common control
China Ocean Shipping Tally Zhangzhou Co. Ltd. Zhangzhou Zhangzhou Logistics support 200.00 - 84.00 Business combination involvingChina China services enterprises under common control
China Merchants Holdings (Djibouti) FZE Djibouti Djibouti Logistics supportservices USD 38140000 - 100.00
Business combination involving
enterprises under common control
Xinda Resources Limited BVI BVI Investment USD 107620000 - 77.45 Business combination involvingholding enterprises under common control
Kong Rise Development Limited HK China HK China Investmentholding USD 107620000 - 100.00
Business combination involving
enterprises under common control
TCP Brazil Brazil Logistics support BRL 68851600 - 100.00 Business combination not involvingservices enterprises under common control
Direcet Achieve Investments Limited HK China HK China Investmentholding USD 814781300 - 100.00
Business combination involving
enterprises under common control
Zhoushan RoRo Zhoushan Zhoushan Logistics supportChina China services 17307.86 51.00 - Asset acquisition
Shenzhen Haixing Logistics Development Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 7066.79 - 100.00 Asset acquisition
Zhanjiang Port Zhanjiang Zhanjiang Logistics support 587420.91 30.78 27.58 Business combination not involvingChina China services enterprises under common control
Zhanjiang Port International Container Terminal Zhanjiang Zhanjiang Logistics support
Co. Ltd. China China services 60000.00 - 80.00
Business combination not involving
enterprises under common control
Zhanjiang Port Petrochemical Terminal Co. Ltd. Zhanjiang Zhanjiang Logistics support Business combination not involving
(Note 4) China China services 18000.00 - 50.00 enterprises under common control
China Ocean Shipping Tally Co. Ltd. Zhanjiang Zhanjiang Zhanjiang Logistics supportChina China services 300.00 - 84.00
Business combination not involving
enterprises under common control
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support 5000.00 - 100.00 Business combination not involvingCo. Ltd. China China services enterprises under common control
Zhanjiang Port Logistics Zhanjiang Zhanjiang Logistics supportChina 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 Harbor Towage Service Co. Ltd. Shantou Logistics supportChina Shantou China services 1000.00 - 100.00 Established through investment
Sanya Merchants Port Development Co. Ltd. Sanya China Sanya China Logistics supportservices 1000.00 51.00 - Established through investment
China Merchants Harbor Modern Logistics
Technology (Shenzhen) Co. Ltd. (Original name: Shenzhen Shenzhen Owning China
China Division of Malai Warehousing (Shenzhen) China China Qianhai property HKD 1600000000 - 100.00
Business combination involving
enterprises under common control
Co. Ltd.)
Ports Development (Hong Kong) Limited Hong Kong Hong Kong InvestmentChina China holding 2768291.56 100.00 - Established through investment
Shunkong Port Foshan China Foshan China Logistics supportservices 27997.59 51.00 - Asset acquisition
South Asia Trade and Logistics Center
Co. Ltd. Sri Lanka Sri Lanka
Logistics support USD
services 37140000 - 70.00 Established through investment
NPH Indonesia Indonesia Logistics support IDR Business combination not involvingservices 281394199000 51.00 - enterprises under common control
- 148 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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.- 149 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 period from 1 January to 30 June 2025
Proportion of Profit or loss
ownership interest attributable to non- Dividends distributed Balance of non-Name of the held by the non- controlling to non-controlling controlling interestssubsidiary controlling shareholders in the shareholders in the at the end of the
shareholders (%) current period current period period
CM Port 50.33 2449708871.88 440068548.36 63381939753.07
Year 2024
Proportion of Profit or loss
Name of the ownership interest attributable to non-
Dividends distributed Balance of non-
subsidiary held by the non- controlling
to non-controlling 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
- 150 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 30/06/2025 31/12/2024
subsidiary Current assets Non-current Total assets Current Non-currentassets liabilities liabilities Total liabilities Current assets
Non-current Current Non-current
assets Total assets liabilities liabilities Total liabilities
CM Port 17880665738.12 136980632635.58 154861298373.70 23112888817.32 22781346144.56 45894234961.88 15225606631.78 135382012965.53 150607619597.31 22281042457.07 21803874037.96 44084916495.03
Name of Current period Prior period
the Total Total
subsidiary Operating income Net profit comprehensive
Cash flows from
operating activities Operating income Net profit comprehensive
Cash flows from
income income operating activities
CM Port 6057106986.04 4239037402.68 5736186323.65 2357593864.34 5358500426.44 4328318286.06 3762456581.36 2326973972.98
- 151 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 period 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 ofof 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 containerterminal business - 28.05 28.05 Equity method
Ningbo Zhoushan Ningbo China Ningbo China Port and containerterminal business 20.98 2.10 23.08 Equity method
- 152 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 30/06/2025/ 31/12/2024/
Current period Prior period
Current assets 54790920877.15 48744038847.45
Including: Cash and cash equivalents 38796420230.19 32830782585.55
Non-current assets 167734778677.29 163311502225.58
Total assets 222525699554.44 212055541073.03
Current liabilities 29941589303.09 23068287468.52
Non-current liabilities 41639203435.12 41578448514.91
Total liabilities 71580792738.21 64646735983.43
Net assets 150944906816.23 147408805089.60
Non-controlling interests 14334443094.87 14101913028.59
Net assets attributable to owners of the Company 136610463721.36 133306892061.01
Share of net assets calculated based on the proportion of
ownership interests 38319235073.84 37392583223.11
Adjustments
- Goodwill 2427508397.27 2427508397.27
- Others 219672726.40 222282154.18
Carrying amount of equity investments in associates 40966416197.51 40042373774.56
Fair value of publicly quoted equity investments in associates 37293796344.95 39971634611.40
Operating income 19569225716.54 19837572517.98
Net profit 8744512925.73 9027010146.72
Net profit attributable to the owner of the parent company of
the investee in the current period 8039559323.21 8415622120.68
Other comprehensive income 66040994.78 23253380.05
Total comprehensive income 8810553920.51 9050263526.77
Dividends received from associates in the current period 947040362.54 1123385809.34
- 153 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 30/06/2025/ 31/12/2024/
Current period Prior period
Current assets 19815599000.00 15453223000.00
Including: Cash and cash equivalents 9902297000.00 4586107000.00
Non-current assets 98492046000.00 97445761000.00
Total assets 118307645000.00 112898984000.00
Current liabilities 22924560000.00 17449594000.00
Non-current liabilities 8872462000.00 9899823000.00
Total liabilities 31797022000.00 27349417000.00
Net assets 86510623000.00 85549567000.00
Non-controlling interests 7510343000.00 7256126000.00
Net assets attributable to owners of the Company 79000280000.00 78293441000.00
Share of net assets calculated based on the proportion of
ownership interests 18233264624.00 18070126182.80
Adjustments
- Goodwill 1231115756.87 1231115756.87
- Others 118980389.80 120244072.03
Carrying amount of equity investments in associates 19583360770.67 19421486011.70
Fair value of publicly quoted equity investments in associates 16431475736.70 17284475843.25
Operating income 14914506000.00 14442173000.00
Net profit 2911104000.00 2502531000.00
Net profit attributable to the owner of the parent company of
the investee in the current period 2597046000.00 2233429000.00
Other comprehensive income -44008000.00 55859000.00
Total comprehensive income 2867096000.00 2558390000.00
Dividends received from associates in the current period 484863218.46 408578523.82
Note: Ningbo Zhoushan's financial data are accurate to the nearest RMB 1000.00.- 154 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 30/06/2025/ 31/12/2024/Current period Prior period
Joint ventures:
Total carrying amount of investments 9509894080.64 9307873045.30
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 158256084.61 184538049.76
- Other comprehensive income 1925795.27 -
- Total comprehensive income 160181879.88 184538049.76
Associates:
Total carrying amount of investments 31715702333.14 31246297063.40
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 594163234.98 297969374.46
- Other comprehensive Income 467648840.32 -113060474.11
- Total comprehensive income 1061812075.30 184908900.35
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 period
Balance of receivables at the end of current period -
2. Liabilities involving government grants
New Amount Amount
Item 01/01/2025 government included in Othernon-operating included in changes 30/06/2025
Related to
grants other income assets/incomeincome
Deferred income 1268975316.61 4587059.60 - 25333879.71 - 1248228496.50 Related to assets
Total 1268975316.61 4587059.60 - 25333879.71 - 1248228496.50 ——
- 155 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS - continued
3. Government grants included in profit or loss
Item Current period Prior period
Business development subsidy 94882937.73 78537483.56
Earmarked funds for innovation 2609378.80 2004500.00
Others 990494.36 544528.17
Total 98482810.89 81086511.73
(XIII) RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances financial assets held for
trading bills receivable accounts receivable 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 and loss for the period
and shareholders' equity would have been affected by reasonably possible changes in the relevant
risk variables. As it is unlikely that risk variables will change in an isolated manner and the
interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable the following are based on the assumption that
the change in each risk variable is on a stand-alone basis.
1. Risk management objectives policies and procedures and changes for the period
The Group's risk management objectives are to achieve a proper balance between risks and yield
minimise the adverse impacts of risks on the Group's operation performance and maximise the
benefits of the shareholders and other stakeholders. Based on these risk management objectives
the Group's basic risk management strategy is to identify and analyse the Group's exposure to
various risks establish an appropriate maximum tolerance to risk implement risk management
and monitors regularly and effectively these exposures to ensure the risks are monitored at a
certain level.- 156 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The
Group's exposure to the currency risk is primarily associated with HKD USD EUR and AUS.Except for part of the purchases and sales the Group's other principal activities are denominated
and settled in RMB. As at 30 June 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 30/06/2025 31/12/2024
Cash and bank balances 693872833.20 1234472138.05
Accounts receivable 28196420.93 10116992.50
Other receivables 1879265519.88 697525377.19
Long-term receivables 1202351267.74 1097372535.36
Short-term borrowings 1870000000.00 2480000000.00
Accounts payable 6027191.67 3693796.53
Other payables 384906471.02 282056319.78
Non-current liabilities due within one year 982247166.66 1998687491.69
Long-term borrowings 980000000.00 2350000000.00
Long-term payables 2160732.39 -
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.- 157 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
Sensitivity analysis on currency risk
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 period Prior period
Item Changes in exchange rate Effect Effect on Effect on
on profit shareholders'
Effect
on profit shareholders'equity equity
All foreign currencies 5% increase against RMB -109869325.22 -109869325.22 -256433226.39 -256430949.87
All foreign currencies 5% decrease against RMB 109869325.22 109869325.22 256433226.39 256430949.87
All foreign currencies 5% increase against USD 2588238.11 2588238.11 2864804.01 2864804.01
All foreign currencies 5% decrease against USD -2588238.11 -2588238.11 -2864804.01 -2864804.01
All foreign currencies 5% increase against HKD 23432819.15 23432819.15 -300129.36 -300129.36
All foreign currencies 5% decrease against HKD -23432819.15 -23432819.15 300129.36 300129.36
All foreign currencies 5% increase against EUR(including FCFA) 12938640.57 12938640.57 11613515.19 11613515.19
All foreign currencies 5% decrease against EUR(including FCFA) -12938640.57 -12938640.57 -11613515.19 -11613515.19
All foreign currencies 5% increase against AUD 49826851.39 49826851.39 50495271.64 50495271.64
All foreign currencies 5% decrease against AUD -49826851.39 -49826851.39 -50495271.64 -50495271.64
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. 23 and Note VIII. 33). 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.- 158 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.1 Market risk - continued
1.1.2 Interest rate risk - changes in cash flows - continued
Sensitivity analysis on interest rate risk
Sensitivity analysis on interest rate risk is based on the following assumptions:
Fluctuations of market interest rate can affect the interest income or expense of a financial
instrument with floating interest rate;
For a financial instrument at fair value with fixed interest rate the fluctuations of market interest
rate can only affect its interest income or expense;
For a derivative financial instrument designated as hedging instrument the fluctuations of market
interest rate affect its fair value and all interest rate hedges are expected to be highly effective;
The changes in fair value of derivative financial instruments and other financial assets and
liabilities are calculated using cash flow discounting method by applying the market interest rate at
balance sheet date.On the basis of above assumptions where the other variables held constant the pre-tax effect of
possible and reasonable changes in interest rate on the profit or loss for the period and
shareholders' equity are as follows:
Current period Prior period
Item Changes in Effect on Effect oninterest rate Effect on profit shareholders' Effect on profit shareholders'
equity equity
Short-term borrowings and
long-term borrowings 1% increase -288393208.38 -288393208.38 -311872062.49 -311872062.49
Short-term borrowings and
long-term borrowings 1% decrease 288393208.38 288393208.38 311872062.49 311872062.49
1.2 Credit risk
As at 30 June 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. 6) long-term receivables
(Note VIII. 10) 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.- 159 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.2 Credit risk - continued
In order to minimise the credit risk the Group has delegated a department responsible for
determination of credit limits credit approvals and other monitoring procedures to ensure that
follow-up action is taken to recover overdue debts. In addition the Group reviews the recoverable
amount of financial assets at each balance sheet date to ensure that adequate provision for 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 30 June 2025 the Group had total current liabilities in excess of total current assets of RMB
6909487536.70. As at 30 June 2025 the Group had available and unused line of credit and
bonds amounting to RMB 67193291009.55 which is greater than the balance of the net current
liabilities. The Group can obtain financial support from the available line of credit and bonds
when needed. Therefore the Group's management believes that the Group has no significant
liquidity risk.The following is the maturity analysis for financial 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 12304605732.70 12438627969.48 - - 12438627969.48
Accounts payable 675684712.35 675684712.35 - - 675684712.35
Other payables 3101766024.67 3101766024.67 - - 3101766024.67
Non-current liabilities due
within one year 11065609420.73 12062420043.91 - - 12062420043.91
Other current liabilities 2202056590.49 2213557412.41 - - 2213557412.41
Long-term borrowings 12769621270.51 - 11216820125.33 2293087944.56 13509908069.89
Bonds payable 15856475119.75 - 15479296706.72 1657873972.60 17137170679.32
Lease liabilities 1481774029.97 - 576288655.22 2701490414.59 3277779069.81
Long-term payables 3659967945.08 - 912345492.05 4835108741.40 5747454233.45
- 160 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 period
Fair value as at 30/06/2025
Item Level 1 Level 2 Level 3Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value
Financial assets held for trading - 4833561128.78 - 4833561128.78
Investments in other equity instruments - - 139451887.05 139451887.05
Other non-current financial assets - - 28524600.31 28524600.31
Total assets continuously measured
at fair value - 4833561128.78 167976487.36 5001537616.14
2. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Item Fair value as at30/06/2025 Valuation techniques Inputs
Financial assets held for trading 4833561128.78 Cash flow discounting Expected rate ofreturn
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 as at30/06/2025 Valuation techniques Inputs
Investments in other equity
instruments 139451887.05 Net Asset Method Carrying amount
Other non-current financial assets 28524600.31 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 net asset method.- 161 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 amortized cost in the financial statements approximate their fair values.- 162 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of Proportion of voting
Name of the Company Related party Place ofrelationship Type of the entity registration Nature of business Issued share capital
ownership interests
held by the Company power held by the
(%) Company (%)
Broadford Global Limited Parent Private limited company (share limited) Hong Kong Investment holding HKD 21120986262 2.21 62.96 (Note)
Note: Broadford International Co. Ltd. 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 International Co. Ltd. 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 International Co. Ltd. for management.
After the completion of this share transfer and share custody the controlling shareholder of the company will still be Broadford International
Co. Ltd. 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 and Note XI. 1.- 163 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS 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.Joint ventures or associates that have related party transactions with the Group in the current
period or formed balances of related party transactions with the Group in the prior period are as
follows:
Name of joint venture or associate Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Qingdao Qianwan United Container Terminal Co. Ltd. (hereinafter referred to as "
Qingdao Qianwan United ") and its subsidiaries Joint venture
Qingdao Qianwan West Port United Wharf Co. Ltd. Joint venture
COSCO Logistics (Zhanjiang) Co. Ltd. Joint venture
China Ocean Shipping Agency Zhanjiang Co. Ltd. Joint venture
Yantai Port Group Laizhou Port Co. Ltd. Joint venture
Qingdao Wutong Century Supply Chain Co. Ltd. Joint venture
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
Tin-Can Island Container Terminal Ltd. Associate
Guizhou Qiandongnan Continental Land Port Operation Co. Ltd. Associate
Nanshan Group and its subsidiaries Associate
Shanggang Group and its subsidiaries Associate
Ningbo Zhoushan 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 Co. Ltd. (hereinafter referred to as "Antong Holdings")
and its subsidiaries Associate
Tianjin Port Container Terminal Co. Ltd. Associate
Liaoning Port and its subsidiaries Associate controlled by the sameultimate controlling shareholder
Zhanjiang Sinotrans Chemical International Logistics Co. Ltd. Associate controlled by the sameultimate controlling shareholder
Lac Assal Investment Holding Company Limited Associate controlled by the sameultimate controlling shareholder
Zhanjiang Infrastructure Construction Investment Group Co. Ltd. Minority interests of the subsidiary
Yihai Kerry Arawana Holdings Co. Ltd. Minority interests of the subsidiary
- 164 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS 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
Penavico Shenzhen Warehousing 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. 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 Ocean Shipping Agency Shenzhen Controlled by the same ultimate controlling shareholder
China Merchants Real Estate (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Merchants to Home Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shenzhen Ro-Ro Shipping Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Commercial Property Investment (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Property Management (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards (Shekou) Limited Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards Limited Controlled by the same ultimate controlling shareholder
China Merchants International Cold Chain (Shenzhen) Company
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 Tongshang Finance Lease Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Electricity Supply
Limited Controlled by the same ultimate controlling shareholder
China Merchants Securities Co. Ltd. Controlled by the same ultimate controlling shareholder
China Traffic Import and Export Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Changhang Group Limited Controlled by the same ultimate controlling shareholder
Shenzhen Dehan Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
Guangdong Sinotrans Shipping Co. Ltd Controlled by the same ultimate controlling shareholder
China Merchants Healthcare (Qichun) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Tally Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Central China Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Shipping Limited Controlled by the same ultimate controlling shareholder
China Merchants Port Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Group (Hong Kong) Co. Ltd. Controlled by the same ultimate controlling shareholder
- 165 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS 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 Heavy Industry (Jiangsu) Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shantou Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants-Logistics Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Ningbo Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines (Hong Kong) Company Limited Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines Co. Ltd. Controlled by the same ultimate controlling shareholder
China Yangtze River Shipping Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Group Corporation Limited Controlled by the same ultimate controlling shareholder
Shenzhen West Port Security Service Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Apartment Development (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Bonded Zone Yongdexin Real Estate Development &
Construction Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shipping and Enterprises Company Limited Controlled by the same ultimate controlling shareholder
Ningbo Transocean International Forwarding Agency Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Dandong Port Group Co. Ltd. Controlled by the same ultimate controlling shareholder
Ocean Driller III Limited Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Transportation Overseas Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Haida Insurance Brokerage Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Guangxi Co. Ltd. Controlled by the same ultimate controlling shareholder
Zhejiang Youlian Shipbuilding Repair Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Xinzhi Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Surplus Property Management Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Jinling Dingheng Ship (Yangzhou) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Industrial Intelligence Technology (Jiangsu) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Innovation and Technology (Group) Co. Ltd. Controlled by the same ultimate controlling shareholder
Hong Kong Haitong Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans South China Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian United King Port Auto 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
Haitong (Shenzhen) Trade Co. Ltd. Controlled by the same ultimate controlling shareholder
ORIENTURE HOLDINGS COMPANY LIMITED Controlled by the same ultimate controlling shareholder
Ocean Offshore 2403 Limited Controlled by the same ultimate controlling shareholder
China Merchants Innovation and Technology (Hong Kong) Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Longsheng Industrial Co. Ltd. Controlled by the same ultimate controlling shareholder
Merchants Port City Controlled by the same ultimate controlling shareholder
- 166 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
Name of other related parties Relationship with the Company
Shenzhen Wanhai Building Management Co. Ltd. Significantly influenced by the ultimate controlling shareholder
China Merchants Union (BVI) limited Significantly influenced by the ultimate controlling shareholder
Datong Securities Co. Ltd. Significantly influenced by the ultimate controlling shareholder
Dalian Automobile Terminal Co. Ltd. Significantly influenced by the ultimate controlling shareholder
Dalian Port Design Research Institute Co. Ltd. Significantly influenced by the ultimate controlling shareholder
Khor Ambado FZCo Significantly influenced by the ultimate controlling shareholder
China Merchants Bank Co. Ltd. Significantly influenced by the ultimate controlling shareholder
China Merchants (Shenzhen) Power Supply Co. Ltd. Significantly influenced by the ultimate controlling shareholder
5. Related party transactions
(1) Rendering and receipt of services
Pricing method and
Related party Content oftransaction decision procedures of Current period Prior periodrelated transactions
Rendering of services:
COSCO Logistics (Zhanjiang) Co. Ltd. Service revenue Negotiation 110228256.70 129725425.39
Antong Holdings and its subsidiaries Service revenue Negotiation 89840767.02 79402988.48
China Ocean Shipping Agency Zhanjiang Co. Ltd. Service revenue Negotiation 33337936.41 39896986.31
Sinotrans Container Transportation (Hainan) Co. Ltd. Service revenue Negotiation 13650615.63 1124778.29
Sinotrans Container Lines Co. Ltd. Service revenue Negotiation 11537722.48 7788611.36
China Merchants Ocean Shipping Agency Shenzhen Service revenue Negotiation 10997593.48 9584350.77
CIAO International Limited Service revenue Negotiation 10813742.62 -
China Marine Shipping Agency Guangdong Co. Ltd. Service revenue Negotiation 10306458.66 17120465.09
Qingdao Qianwan United and its subsidiaries Service revenue Negotiation 8463521.66 29516987.91
South China Sinotrans Supply Chain Management Co. Ltd. Service revenue Negotiation 6691248.78 40823.27
Yiu Lian Dockyards (Shekou) Limited Service revenue Negotiation 5736511.05 5789639.47
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Service revenue Negotiation 4434880.36 5514141.96
China Ocean Shipping Agency Shenzhen Co. Ltd. Service revenue Negotiation 4122229.71 4512358.45
China Merchants International Cold Chain (Shenzhen) Company
Limited. Service revenue Negotiation 3659918.00 3617926.00
Shenzhen Baohong Technology Co. Ltd. Service revenue Negotiation 2536064.26 2788710.48
Liaoning Port and its subsidiaries Service revenue Negotiation 2516207.84 2164982.97
Qingdao Sinotrans Mining Technology Co. Ltd. Service revenue Negotiation 2488783.05 269617.93
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Service revenue Negotiation 2236211.88 1379772.34
Sinoway Shipping Ltd. Service revenue Negotiation 2131032.52 2027083.04
Other related parties Service revenue Negotiation 14991546.22 23204587.70
Port of Newcastle and its subsidiaries Interest income Negotiation 38788955.94 34832183.27
China Merchants Group Finance Company Limited Interest income Negotiation 30809751.96 19216790.25
China Merchants Bank Co. Ltd. Interest income Negotiation 23563438.34 16828019.29
Terminal Link SAS Interest income Negotiation 5729902.57 6269446.51
Tianjin Haitian Bonded Logistics Co. Ltd. Interest income Negotiation 511219.19 569824.03
- 167 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Rendering and receipt of services - continued
Pricing method and
Related party Content of decision procedurestransaction of related Current period Prior period
transactions
Receipt of services:
Shenzhen Chiwan Industrial Development Co. Ltd and its
subsidiaries Service expenditure Negotiation 29247703.24 18364365.64
Shenzhen Nanyou (Holdings) Ltd. Service expenditure Negotiation 18407462.46 17899824.44
Qingdao Qianwan West Port United Wharf Co. Ltd. Service expenditure Negotiation 6684470.00 9441654.65
Shenzhen West Port Security Service Co. Ltd. Service expenditure Negotiation 6474552.85 5934502.97
China Merchants Investment Development Company Limited. Service expenditure Negotiation 4189133.27 3320897.00
Zhanjiang COSCO Shipping Logistics Co. Ltd. Service expenditure Negotiation 4166843.52 3076054.16
Yiu Lian Dockyards Limited Service expenditure Negotiation 3591125.69 3546037.61
Dalian United King Port Auto Trade Co. Ltd. Service expenditure Negotiation 3478584.05 236640.63
China Merchants (Shenzhen) Power Supply Co. Ltd. Service expenditure Negotiation 2855653.24 5121162.21
China Merchants-Logistics Shenzhen Co. Ltd. Service expenditure Negotiation 2687110.98 362695.31
International Djibouti Industrial Parks Operation FZCo Service expenditure Negotiation 2636668.18 2006556.55
China Merchants Zhangzhou Development Zone Electricity
Supply Limited. Service expenditure Negotiation 2234982.31 2806920.55
China Merchants Property Management (Shenzhen) Co. Ltd. Service expenditure Negotiation 2136619.53 2914842.28
Liaoning Port and its subsidiaries Service expenditure Negotiation 2131847.37 539827.07
Other related parties Service expenditure Negotiation 18612453.15 17688193.59
China Merchants Bank Co. Ltd. Purchase of structureddeposits Negotiation 7400000000.00 2320000000.00
China Merchants Bank Co. Ltd. Interest expense Negotiation 31819776.01 28544630.32
China Merchants Group Finance Company Limited Interest expense Negotiation 17363440.78 16832904.93
Ocean Offshore 2403 Limited Interest expense Negotiation 1777492.82 -
China Merchants Finance Lease (Tianjin) Co. Ltd. Interest expense Negotiation 1543321.18 1653973.16
China Merchants Finance Lease (Shanghai) Co. Ltd. Interest expense Negotiation - 1707016.51
- 168 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Pricing method and Lease income Lease income
Name of the lessee Type of leased assets decision procedures recognized inof related the current recognized in the
transactions period prior period
Qingdao Qianwan West Port United Wharf Co. Ltd. Port and terminal facilities Negotiation 8466125.94 7147337.58
Qingdao Bonded Logistics Park Sinotrans Warehousing Port and terminal facilities
Logistics Co. Ltd. Negotiation 2501982.37 2883944.28
Qingdao Sinotrans Supply Chain Management Co. Ltd. Port and terminal facilities Negotiation 2379976.01 2393117.24
Qingdao Sinotrans Mining Technology Co. Ltd. Port and terminal facilities Negotiation 2375278.56 2375278.56
China Traffic Import and Export Co. Ltd. Buildings and structures Negotiation 1918396.56 2589835.38
Qingdao Qianwan United and its subsidiaries Buildings and structures Negotiation 1661969.04 1666134.78
Qingdao Wutong Century Supply Chain Co. Ltd. Port and terminal facilities Negotiation 1285631.82 1349106.93
Qingdao Sinotrans Logistics Co. Ltd. Buildings and structures Negotiation 1238853.33 1238834.28
Haitong (Shenzhen) Trade Co. Ltd. Buildings and structures Negotiation 1231266.30 1112769.54
China Merchants Securities Co. Ltd. Buildings and structures Negotiation 1214641.35 1275298.17
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Port and terminal facilities Negotiation 1203393.72 1288713.18
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 1082476.85 1064638.09
Other related parties Buildings and structuresPort and terminal facilities Negotiation 3832692.65 6317985.41
Total —— —— 30392684.50 32702993.42
- 169 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS 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 measurement of lease Rental paid liabilities Addition to right-of-use assets
using simplified approach liabilities
Current period Prior period Current period Prior period Current period Prior period Current period Prior period Current period Prior period
China Merchants Shekou Industrial Zone Port and terminal facilities
Holdings Co. Ltd. Land use right - - - - 16835592.51 19893126.15 917751.66 1366247.62 - 35053682.62
EuroAsia Dockyard Enterprise and
Development Limited Port and terminal facilities - - - - 7585747.55 7504804.84 332662.65 331040.40 - -
Shenzhen Qianhai Shekou Free Trade Port and terminal facilities
Investment Development Co. Ltd. Land use right 7139140.97 3216192.69 - - 3890831.83 4206780.00 - - - -
China Merchants Finance Lease (Tianjin)
Co. Ltd. Port and terminal facilities - - - - 1569286.11 21519888.10 1543321.18 1704729.75 - -
Nanshan Group and its subsidiaries Buildings and structures Portand terminal facilities Others 31258610.94 114010.98 - - 1126992.96 33839758.29 50922.08 1099787.96 294720.92 1018879.00
Buildings and structures Port
Other related parties and terminal facilitiesmechanical equipment Land 1071148.62 1002577.19 - - 2405119.45 58986238.65 86991.76 1876737.11 - 5501535.02
use right Others
Total 39468900.53 4332780.86 - - 33413570.41 145950596.03 2931649.33 6378542.84 294720.92 41574096.64
- 170 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(3) Related party guarantees
The Group as the guarantor:
The guarantee has
Secured party Credit line Guaranteedamount Commencement date Maturity been completed ornot
30/06/2025
Terminal Link SAS (Note 1) 58778985.08 58778985.08 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 206167680.00 166801451.75 24 May 2019 2032 No
Terminal Link SAS (Note 2) 236233800.00 115754562.00 25 Jan 2023 2030 No
Total 501180465.08 341334998.83 —— —— ——
31/12/2024
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 Jan 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 58778985.08 as at 30 June 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 30 June 2025 is RMB 115754562.00.Note 3: Khor Ambado FZCo is a related party of the Group's ultimate controlling shareholder.The Group and other shareholders of Khor Ambado FZCo provide guarantee for its bank
loans and other liabilities the actual amount of which as at 30 June 2025 is RMB
166801451.75.
- 171 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
For the period from 1 January to 30 June 2025
Borrowings
China Merchants Bank Co. Ltd. 711200662.22 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 400154273.45 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 229054383.34 Actual borrowing date Agreed repayment date Short-term borrowings
Ocean Offshore 2403 Limited 145113492.82 Actual borrowing date Agreed repayment date Long-term payables
China Merchants Group Finance Company Limited 85770617.58 Actual borrowing date Agreed repayment date Long-term borrowings
Yihai Kerry Arawana Holdings Co. Ltd. 36658499.40 Actual borrowing date Agreed repayment date Long-term payables
Total 1607951928.81 — — —— ——
For the year ended 31 December 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 30 June 2025 the total credit lines of the Group from the related parties China
Merchants Bank Co. Ltd. and China Merchants Group Finance Company Limited are
RMB 5188300000.00 and RMB 10000000000.00 respectively.
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision proceduresof related Current period Prior period
transactions
Zhanjiang Sinotrans Chemical Contribution of land use
International Logistics Co. Ltd. right Valuation 52122355.00 -
Zhanjiang Sinotrans Chemical Transfer of land use
International Logistics Co. Ltd. right Valuation 43972744.00 -
Dalian United King Port Auto Trade Co. Acquisition of
Ltd. construction in progress Negotiation 2541946.88 -
Ocean Offshore 2403 Limited Acquisition ofconstruction in progress Negotiation 1777492.82 -
Hong Kong Haitong Co. Ltd. Acquisition ofconstruction in progress Negotiation 1572861.85 -
Dalian United King Port Auto Trade Co. Acquisition of fixed
Ltd. assets Negotiation 936637.17 234513.27
Hoi Tung (Shanghai) Company Limited Acquisition of fixedassets Negotiation - 2876106.19
Other related parties Acquisition ofconstruction in progress Negotiation 821594.29 871613.11
Total —— —— 103745632.01 3982232.57
- 172 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(6) Compensation for key management personnel
Item Current period Prior period
Compensation for key management personnel 11171413.15 8080998.82
6. Amounts due from/to related parties that have not settled
(1) Amounts due from related parties
Item Related party 30/06/2025 31/12/2024
China Merchants Group Finance Company Limited 2904541481.79 4745991554.35
Cash and bank balances China Merchants Bank Co. Ltd. 2373210607.84 3404002420.98
Total 5277752089.63 8149993975.33
COSCO Logistics (Zhanjiang) Co. Ltd. 47756326.73 12222891.71
Antong Holdings and its subsidiaries 28444004.35 9901450.77
Sinotrans Container Transportation (Hainan) Co. Ltd. 6761004.98 2350603.78
Yiu Lian Dockyards (Shekou) Limited 4598782.00 355728.00
Sinotrans Container Lines Co. Ltd. 3060872.75 4496476.26
China Marine Shipping Agency Guangdong Co. Ltd. 2504823.28 1641276.39
Liaoning Port and its subsidiaries 2413368.23 2358141.87
Qingdao Qianwan United Container Terminal Co. Ltd. 2229255.00 3600.00
Great Horn Development Company FZCo 2195190.84 2201806.92
China Ocean Shipping Agency Shenzhen Co. Ltd. 2053879.20 3778789.25
CIAO International Limited 2039404.94 7428.36
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. 1814329.04 1328516.60
Accounts receivable Sinotrans (HK) Shipping Limited 1694473.85 1188868.03
China Merchants International Shipping Agency (Shenzhen)
Co. Ltd. 1684570.36 1860650.90
Yantai Port Group Laizhou Port Co. Ltd. 1650000.00 550000.00
Qingdao Qianwan West Port United Wharf Co. Ltd. 1610945.48 174715.79
Nanshan Group and its subsidiaries 1410636.16 337492.97
Sinoway Shipping Ltd. 1244060.18 744465.30
China Merchants Investment Development Company Limited 1079600.00 3439600.00
China Marine Shipping Agency Shenzhen Co. Ltd. 894676.83 1124282.95
Merchants Port City 559541.29 1404084.82
China Merchants Logistics Group (Tianjin) Co. Ltd. - 3109502.50
Other related parties 6585508.59 5077516.26
Total 124285254.08 59657889.43
- 173 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Item Related party 30/06/2025 31/12/2024
Shanghai Port Group and its subsidiaries 947040362.53 326565642.25
Nanshan Group and its subsidiaries 185070000.00 148056000.00
Liaoning Port and its subsidiaries 64862336.45 -
Merchants Port City 38809044.77 38809044.77
COSCO Logistics (Zhanjiang) Co. Ltd. 5000000.00 5649001.16
Dividends receivable Tianjin Port Container Terminal Co. Ltd. 4277111.77 -
Tin-Can Island Container Terminal Ltd. 2638420.91 -
Qingdao Wutong Century Supply Chain Co. Ltd. 1190109.26 1190109.26
China Ocean Shipping Agency Shenzhen Co. Ltd. - 10575000.00
Euro-Asia Oceangate S.à r.l. - 23881469.17
Total 1248887385.69 554726266.61
Chu Kong River Trade Terminal Co. Ltd. 36847872.80 37374974.40
Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries 28784753.36 31299652.92
PORT DE DJIBOUTI S.A. 25262970.00 -
Ocean Offshore 2403 Limited 7166800.00 -
Shenzhen Qianhai Shekou Free Trade Investment Development
Co. Ltd. 6310000.00 6310000.00
China Merchants Investment Development Company Limited 4991722.73 3837775.52
Zhanjiang Sinotrans Chemical International Logistics Co. Ltd. 3972744.00 -
Other receivables China Merchants Group (Hong Kong) Co. Ltd. 2576322.84 2300860.48International Djibouti Industrial Parks Operation FZCo 1549749.26 293452.73
EuroAsia Dockyard Enterprise and Development Limited 1543323.30 1565400.24
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 1166408.40 1166408.40
Merchants Port City 1015035.42 -
Tin-Can Island Container Terminal Ltd. 761638.87 1056415.05
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. 558758.46 1929055.32
Other related parties 3928659.03 968918.60
Total 126436758.47 88102913.66
Liaoning Port and its subsidiaries 1183872.64 79471.70
Prepayments Other related parties 554033.63 226860.75
Total 1737906.27 306332.45
Non-current assets due Tianjin Haitian Bonded Logistics Co. Ltd. 34300000.00 34300000.00
within one year Other related parties 733573.82 733025.11Total 35033573.82 35033025.11
Port of Newcastle and its subsidiaries 986022060.75 920674796.27
Long-term receivables Terminal Link SAS 234944715.04 215013954.38Other related parties 909825.94 1058295.37
Total 1221876601.73 1136747046.02
- 174 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Item Related party 31/06/2025 31/12/2024
China Merchants Bank Co. Ltd. 887798030.28 1298369781.25
Short-term borrowings China Merchants Group Finance Company Limited 309187299.99 180132916.65
Total 1196985330.27 1478502697.90
Nanshan Group and its subsidiaries 40896946.19 7757550.49
Antong Holdings and its subsidiaries 17869057.61 17869057.61
China Merchants (Shenzhen) Power Supply Co. Ltd. 7346780.03 7491614.83
Shenzhen Chiwan Industrial Development Co. Ltd and its
subsidiaries 4988256.05 5886136.82
Liaoning Port and its subsidiaries 2235992.69 5020956.61
Yiu Lian Dockyards Limited 1799933.22 1831651.56
Accounts payable EuroAsia Dockyard Enterprise and Development Limited 1410405.19 1562589.15Shenzhen West Port Security Service Co. Ltd. 1032907.00 991318.88
Qingdao Qianwan West Port United Wharf Co. Ltd. 933891.19 2302401.72
China Merchants Xinzhi Technology Co. Ltd. 770000.00 2695000.00
China Merchants Port Investment Development Co. Ltd. 29445.29 1916766.44
Khor Ambado FZCo - 14376800.00
Sinotrans South China Co. Ltd. - 7731300.00
Other related parties 4971017.15 2111683.58
Total 84284631.61 79544827.69
Advance payments Qingdao Qianwan United and its subsidiaries 1600791.49 -
received Other related parties 1705403.65 1020627.96Total 3306195.14 1020627.96
Antong Holdings and its subsidiaries 3219488.00 400.00
Contract liabilities Other related parties 1356669.02 990269.32
Total 4576157.02 990669.32
China Merchants Zhangzhou Development Zone Co. Ltd. 105526928.23 79792513.04
Zhanjiang Infrastructure Construction Investment Group
Co. Ltd. 37094597.35 52542231.24
Dividends payable China Merchants Innovation and Technology (Hong Kong)Co. Ltd. 13705787.23 -
Yiu Lian Dockyards Limited 10389914.81 -
ORIENTURE HOLDINGS COMPANY LIMITED 1741965.84 -
Total 168459193.46 132334744.28
Lac Assal Investment Holding Company Limited 81522369.36 81768095.74
China Merchants Investment Development Company Limited 7896553.34 3559625.15
Antong Holdings and its subsidiaries 6340341.84 4743266.37
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 4650713.65 2975713.65
CIAO International Limited 2999920.00 2999920.00
Other payables Terminal Link SAS 1944173.67 -Nanshan Group and its subsidiaries 1495646.95 1487524.53
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1220440.54 1744765.30
China Ocean Shipping Agency Zhanjiang Co. Ltd. 1000000.00 700000.00
Liaoning Port and its subsidiaries 195191.52 1752579.27
China Merchants Shekou Industrial Zone Holdings Co. Ltd. - 6930409.58
Other related parties 10233663.23 10162873.36
Total 119499014.10 118824772.95
- 175 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties - continued
Item Related party 31/06/2025 31/12/2024
China Merchants Group Finance Company Limited 303346606.20 153940240.06
China Merchants Bank Co. Ltd. 212584693.22 115025994.45
China Merchants Finance Lease (Tianjin) Co. Ltd. 48207798.32 40241960.67
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 34284571.46 37080955.45
Non-current liabilities Ocean Offshore 2403 Limited 28667200.00 -
due within one year Nanshan Group and its subsidiaries 2116520.35 -
Shenzhen Wanhai Building Management Co. Ltd. 1606884.25 -
Other related parties 824569.51 843949.71
EuroAsia Dockyard Enterprise and Development Limited - 14776413.72
Total 631638843.31 361909514.06
China Merchants Bank Co. Ltd. 1521882969.11 1316000000.00
Long-term borrowings China Merchants Group Finance Company Limited 524536390.38 658012389.53
Total 2046419359.49 1974012389.53
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 15182190.83 32067795.24
Lease liabilities China Merchants International Cold Chain (Shenzhen)Company Limited 682813.71 1182801.92
Total 15865004.54 33250597.16
Ocean Offshore 2403 Limited 116446292.82 -
Long-term payables Yihai Kerry Arawana Holdings Co. Ltd. 36658499.40 -China Merchants Finance Lease (Tianjin) Co. Ltd. 23965052.12 31964366.45
Total 177069844.34 31964366.45
Other non-current Shenzhen Wanhai Building Management Co. Ltd. 1211217.90 -
liabilities Nanshan Group and its subsidiaries 1154702.12 -Total 2365920.02 -
(XVI) SHARE-BASED PAYMENTS
1. Equity instruments
Granted in the current Exercised in the current Unlocked in the current Lapsed in the current
Type of targets
granted period period period period
Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - 199900.00 649675.00 - - - -
- 176 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
1. Equity instruments - continued
Outstanding stock option or other equity instruments at the end of current period
Outstanding stock option at the end of current period
Type of targets granted
Range of exercise prices Remaining term of contract
Management RMB 13.25 to RMB 15.50 19 months
2. Equity-settled share-based payments
The method used to determine the fair value of equity instruments The cost of granted stock options was estimated
at the grant date using the Black Scholes Model.At each balance sheet date in the vesting period
the best estimate was made and the estimated
The basis for determining the number of exercisable equity instruments number of exercisable equity instruments wasmodified 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 period and the estimates of prior year Nothing
The aggregate amount of equity-settled share-based payments that is
included in capital reserve 63655.80
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.- 177 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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.As at the date on which the financial statements are issued 193 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) 188 incentive targets who met the designated grades in the
performance assessment holding 100% of the stock option (totalling 3422400 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).- 178 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
3. Share-based payment expenses in the current period
Type of targets granted Equity-settled share-based payment expenses
Management -
(XVII) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item 30/06/2025 31/12/2024
Commitments that have been entered into but have not
been recognized in the financial statements
- Commitment to acquire and construct long-term assets 2366741451.71 2891660439.17
- Commitment to make contributions to the investees 16756625.91 68882165.47
Total 2383498077.62 2960542604.64
2. Contingencies
Item 30/06/2025 31/12/2024
Contingent liabilities brought by external litigations (Note 1) 916194745.22 804570710.82
Guarantee for borrowings of related parties (Note 2) 341334998.83 342405821.51
Total 1257529744.05 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 period end. The amount involved in the
pending litigation is RMB 916194745.22. 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 recognized the estimated liabilities for the contingent liabilities caused by
the above pending litigation.- 179 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies - continued
Note 2: As at 30 June 2025 the guarantees provided by the Group for related parties are detailed
in Note XV. 5.As at 30 June 2025 the directors of the Company evaluated the default risks of related
companies on the above-mentioned loan financing and other liabilities and believed that
the risks were not significant and the possibility of guaranteed payments was very low.Note 3: China Merchants Port Holdings a subsidiary of the Company is involved in a legal
lawsuit related to an overseas investment. Based on the opinions of legal advisors and the
information available to the Company the management of the Company believes that the
possibility of a claim cannot be determined at present and that the above-mentioned legal
lawsuit is unlikely to result in the outflow of economic benefits from the Company.Therefore the Group has not recognized any estimated liabilities for the contingent
liabilities caused by the above-mentioned legal lawsuit.Except for the above-mentioned contingencies As at 30 June 2025 the Group had no other major
guarantees and other contingencies that need to be explained.(XVIII) EVENTS AFTER THE BALANCE SHEET
The Company had no significant events after the balance sheet date.(XIX) OTHER SIGNIFICANT EVENTS
1. Segment reporting
(1) Basis for determining reporting segments and accounting policies
The key management team of the Company is regarded as the CODM who reviews the Group's
internal reports in order to assess performance allocate resources and determine the operating
segments. The CODM considers the operation of the Group in terms of business and locations.Individual operating segments for which discrete financial information is available are identified
by the CODM and are operated by their respective management teams. These individual operating
segments are aggregated in arriving at the reporting segments of the Group.From business and location perspectives the management assesses the performance of the
Group's business operations including ports operation bonded logistics operation and other
operations.Ports operation
Ports operation includes container terminal operation bulk and general cargo terminal operation
operated by the Group and its associates and joint ventures.- 180 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 1309565463.81
representing 15.46% (from 1 January to 30 June 2024: 13.86%) .- 181 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 the period from 1 January to 30 June 2025 is as follows:
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logisticsoperation Others Unallocated amount Total
Pearl River Delta Yangtze River Other locations Sub-totalDelta Bohai Rim Others
Operating income 3519011226.80 137755.21 13986156.15 1504339421.37 3040042023.22 8077516582.75 305195700.04 85779093.29 - 8468491376.08
Operating costs 1776103190.68 4251608.20 6844764.09 1278654685.09 1246331683.03 4312185931.09 175659536.14 108418625.27 - 4596264092.50
Segment operating profit (“-” for
losses) 1742908036.12 -4113852.99 7141392.06 225684736.28 1793710340.19 3765330651.66 129536163.90 -22639531.98 - 3872227283.58
Taxes and surcharges 17442155.96 540767.29 802751.38 24536380.63 107439669.29 150761724.55 13201806.86 12127437.32 124187.76 176215156.49
Administrative expense 188686909.49 2049151.10 4386966.47 179692735.64 162792311.25 537608073.95 21269978.32 557559.24 199637497.93 759073109.44
R&D expenses 87599302.90 - - 9601570.86 - 97200873.76 - - 9930272.79 107131146.55
Financial expenses 11765190.14 -6792779.77 -302546.17 29787830.36 31834271.55 66291966.11 19346593.18 1387004.79 749546422.50 836571986.58
Other income 109044715.55 612956.50 27504.03 14871263.19 - 124556439.27 471126.18 134990.58 - 125162556.03
Investment income (“-” for losses) 44936641.43 2852058858.18 144794869.01 25160853.01 420512592.25 3487463813.88 86442141.06 71470297.69 7459080.74 3652835333.37
Including: Investment income from
associates and joint ventures 14317096.32 2852058858.18 144794869.01 16910357.54 420512592.25 3448593773.30 86442141.06 71470297.69 - 3606506212.05
Gains from changes in fair value
(“-” for losses) 20435994.54 - - - - 20435994.54 - - 599452.06 21035446.60
Reversal of/(Losses on)
credit impairment -1082814.66 - - -267318.34 6043934.77 4693801.77 - - - 4693801.77
Impairment losses (“-” for losses) 1621.20 - - - - 1621.20 - - - 1621.20
Gains from asset disposals (“-” for
losses) 155798.25 - - 6123427.04 436493.97 6715719.26 -26864.57 - - 6688854.69
Operating profit (“-” for losses) 1610906433.94 2852760823.07 147076593.42 27954443.69 1918637109.09 6557335403.21 162604188.21 34893754.94 -951179848.18 5803653498.18
- 182 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 the period from 1 January to 30 June 2025 is as follows: - continued
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logisticsYangtze River Other locations Sub-total operation Others Unallocated amount TotalPearl River Delta Delta Bohai Rim Others
Non-operating income 3105946.98 - - 3363354.49 6420131.97 12889433.44 795708.46 55846.13 3831005.96 17571993.99
Non-operating expenses 669964.79 - - 2162237.60 9920328.30 12752530.69 36000.00 324.74 444.40 12789299.83
Total profit (“-” for losses) 1613342416.13 2852760823.07 147076593.42 29155560.58 1915136912.76 6557472305.96 163363896.67 34949276.33 -947349286.62 5808436192.34
Income tax expenses 312664239.11 100224893.12 14055305.66 3610305.52 270138271.25 700693014.66 14845642.55 12223552.71 646599.40 728408809.32
Net profit (“-” for losses) 1300678177.02 2752535929.95 133021287.76 25545255.06 1644998641.51 5856779291.30 148518254.12 22725723.62 -947995886.02 5080027383.02
Segment assets 27457115682.01 63388170894.22 9227896192.70 26401352335.52 43415116836.52 169889651940.97 4460588751.28 17462132059.68 11331680409.22 203144053161.15
Total assets in the financial statements 203144053161.15
Segment liabilities 7821323407.22 1505698679.47 154366674.60 7111488954.53 6687551490.41 23280429206.23 503670780.37 406188893.23 48366091767.09 72556380646.92
Total liabilities in the financial statements 72556380646.92
Supplementary information:
Depreciation and amortization 545355993.29 3058262.56 479621.58 445311243.17 497330751.34 1491535871.94 47469967.92 66549567.10 18165325.83 1623720732.79
Interest income 21198875.55 108734.73 101094.80 5545923.02 82917894.26 109872522.36 377103.06 739935.23 89799133.17 200788693.82
Interest expense 34185481.96 3609959.66 - 35164581.41 176627472.00 249587495.03 17770104.89 4068318.83 744377039.67 1015802958.42
Investment income from
long-term equity investments 14317096.32 2852058858.18 144794869.01 16910357.54 420512592.25 3448593773.30 86442141.06 71470297.69 - 3606506212.05
under equity method
Long-term equity investments
under equity method 1776764425.47 60549776968.18 9103163477.77 1690650980.21 12887806822.91 86008162674.54 1847134007.44 13920076699.98 -
101775373381.96
Non-current assets other than
long-term equity investments 19398049772.13 389968844.81 13853058.22 19579109524.24 26280047117.92 65661028317.32 2347236475.39 3263212028.52 911225359.35 72182702180.58
- 183 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 the period from 1 January to 30 June 2024 is as follows:
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logisticsoperation Others Unallocated amount Total
Pearl River Delta Yangtze River Other locations Sub-totalDelta Bohai Rim Others
Operating income 3219936922.80 1029435.60 39308697.49 1714301249.69 2644011210.95 7618587516.53 265131369.96 91474197.15 - 7975193083.64
Operating costs 1685168257.93 5842912.70 33142932.27 1253584489.47 1157898462.56 4135637054.93 142996868.88 112235371.15 - 4390869294.96
Segment operating profit (“-” for
losses) 1534768664.87 -4813477.10 6165765.22 460716760.22 1486112748.39 3482950461.60 122134501.08 -20761174.00 - 3584323788.68
Taxes and surcharges 17244195.32 535050.52 821769.63 25037360.24 94328417.32 137966793.03 13249160.22 12119726.59 247808.92 163583488.76
Administrative expense 196933278.40 1612493.40 4359371.33 248105996.41 126398428.69 577409568.23 33030856.52 549225.95 197189105.48 808178756.18
R&D expenses 75295632.42 - - 9437328.88 - 84732961.30 - - - 84732961.30
Financial expenses 26926418.03 3725670.57 -94890.31 38170354.37 134100453.57 202828006.23 -3209663.68 7731837.05 788862594.21 996212773.81
Other income 82479124.76 612942.55 26641.94 14188876.02 - 97307585.27 10880170.75 208451.85 - 108396207.87
Investment income (“-” for
losses) 43658873.09 2875237848.06 202338251.96 9197560.90 298146789.22 3428579323.23 20421144.80 -27371992.96 16221423.39 3437849898.46
Including: Investment income
from associates and joint 27015306.72 2875237848.06 157499358.35 6796818.08 298146789.23 3364696120.44 20421144.80 -27371992.96 - 3357745272.28
ventures
Gains from changes in fair value
(“-” for losses) 20980499.73 - 443376957.50 101333.89 - 464458791.12 - 206159.78 1187945.21 465852896.11
Reversal of/(Losses on) credit
impairment -214532.10 - - -1286581.85 316819722.85 315318608.90 407893.03 - - 315726501.93
Impairment losses (“-” for
losses) - - - - - - - - - -
Gains from asset disposals (“-”
for losses) 1147053.63 -4304.65 -110309.93 -2124.02 11603.21 1041918.24 -155995.83 - -1454.23 884468.18
Operating profit (“-” for losses) 1366420159.81 2865159794.37 646711056.04 162164785.26 1746263564.09 6786719359.57 110617360.77 -68119344.92 -968891594.24 5860325781.18
- 184 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 the period from 1 January to 30 June 2024 is as follows: - continued
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logisticsYangtze River operation Others Unallocated amount TotalPearl River Delta Delta Bohai Rim Others
Other locations Sub-total
Non-operating income 8082316.61 - - 4261287.73 1978420.68 14322025.02 42240.83 49439.70 3124729.18 17538434.73
Non-operating expenses 1279860.60 - - 1371370.31 30938243.78 33589474.69 18742.91 8251.63 83158.86 33699628.09
Total profit (“-” for losses) 1373222615.82 2865159794.37 646711056.04 165054702.68 1717303740.99 6767451909.90 110640858.69 -68078156.85 -965850023.92 5844164587.82
Income tax expenses 292334020.67 102522933.56 115122672.41 39662238.21 233122011.23 782763876.08 16402878.58 7906087.89 -2553964.04 804518878.51
Net profit (“-” for losses) 1080888595.15 2762636860.81 531588383.63 125392464.47 1484181729.76 5984688033.82 94237980.11 -75984244.74 -963296059.88 5039645709.31
Segment assets 25159648144.61 59053667162.30 10290478652.54 27605130841.79 43895539823.77 166004464625.01 4385458318.06 19461526772.48 10893681899.76 200745131615.31
Total assets in the financial statements 200745131615.31
Segment liabilities 8054756474.59 1342738444.87 168738974.83 6396356667.72 8043590852.58 24006181414.59 548164250.29 582804155.89 48634223695.33 73771373516.10
Total liabilities in the financial statements 73771373516.10
Supplementary information:
Depreciation and amortization 649214097.15 4429200.35 441032.34 426072123.12 445805837.98 1525962290.94 52670505.19 12591960.02 12078684.43 1603303440.58
Interest income 16953957.00 285724.46 304556.64 8849103.13 97732626.85 124125968.08 2947476.59 478816.47 112605281.64 240157542.78
Interest expense 44968925.36 4005717.95 - 46286600.74 158527211.05 253788455.10 4228352.92 6619216.67 883829107.75 1148465132.44
Investment income from
long-term equity investments 27015306.72 2875237848.06 157499358.35 6796818.08 298146789.23 3364696120.44 20421144.80 -27371992.96 - 3357745272.28
under equity method
Long-term equity investments
under equity method 1778239596.88 57238687511.41 8854531448.95 1714256379.55 12321801119.52 81907516056.31 1712129148.10 14359020060.75 - 97978665265.16
Non-current assets other than
long-term equity investments 18020380466.47 394157415.12 14385806.35 19882238102.80 25993279320.59 64304441111.33 2367078133.19 4707807383.48 1182623518.60 72561950146.60
- 185 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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
The Group's total revenue from external transactions in Mainland China and other countries and
regions and total non-current assets other than financial assets and deferred tax assets located in
Mainland China and other countries and regions are presented as follows:
Revenue from external transactions Current period Prior period
Mainland China Hong Kong and Taiwan 5393865378.88 5310331280.78
Pearl River Delta 3798128505.77 3479997279.58
Yangtze River Delta 137755.21 1029435.60
Bohai Rim 91259696.53 115003315.91
Others 1504339421.37 1714301249.69
Other locations 3074625997.20 2664861802.86
Total 8468491376.08 7975193083.64
Total non-current assets 30/06/2025 31/12/2024
Mainland China Hong Kong and Taiwan 132589177184.03 131164149562.93
Pearl River Delta 39736284190.19 38760830551.24
Yangtze River Delta 60939670150.35 59856917512.96
Bohai Rim 9596169528.81 9537186598.85
Others 22317053314.68 23009214899.88
Other locations 41368898378.51 40481468321.83
Total 173958075562.54 171645617884.76
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
2681539552.17 accounting for 31.66% of the Group's operating income.
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Other receivables
1.1 Summary of other receivables
Item 30/06/2025 31/12/2024
Dividends receivable 633862578.90 965690879.89
Other receivables 1439944191.90 1447751781.79
Total 2073806770.80 2413442661.68
- 186 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 30/06/2025 31/12/2024 Reason for and theoutstanding determination
basis
Dividend receivable aged less than 1 year 485756018.86 816439596.16 —— ——
Including: Port Development (Hong Kong) Co. Ltd. 456490000.00 805654800.00 —— No
Shenzhen Chiwan Harbor Container Co.Ltd. 20000000.00 - —— No
CM Port 9163078.84 - —— No
CM International Tech 102940.02 - —— No
Chiwan Shipping (Hong Kong) Limited - 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 633862578.90 965690879.89 —— ——
Less: Provision for bad debts - - —— ——
Total 633862578.90 965690879.89 —— ——
- 187 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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
30/06/202531/12/2024
Item
Book value Proportion Provision for(%) bad debts Book value
Proportion Provision for
(%) bad debts
Within 1 year
(including 1 year) 1439597708.93 99.95 - 1447405298.82 99.95 -
1 to 2 years (including
2 years) 18167.50 - - 18167.50 - -
2 to 3 years (including
3 years) - - - - - -
More than 3 years 711772.07 0.05 383456.60 711772.07 0.05 383456.60
Total 1440327648.50 100.00 383456.60 1448135238.39 100.00 383456.60
(2) Disclosure of other receivables by nature
Item 30/06/2025 31/12/2024
Amounts due from related parties 1422029387.33 1438029807.71
Advance payments 7002187.24 5779708.72
Others 11296073.93 4325721.96
Sub-total 1440327648.50 1448135238.39
Less: Provision for bad debts 383456.60 383456.60
Total 1439944191.90 1447751781.79
- 188 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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) Provision for bad debts of other receivables
Credit Expected
Book value Provision for bad debts
credit loss Aging Aging Carrying Reason forrating rate (%) amount provisionWithin 1 year 1-2 years 2-3 years More than 3years Total
Within 1 More than 3
year 1-2 years 2-3 years years Total
A 0.00-0.10 1439597708.93 18167.50 - 328315.47 1439944191.90 - - - - - 1439944191.90 ——
B 0.10-0.30 - - - - - - - - - - - ——
C 0.30-50.00 - - - - - - - - - - - ——
50.00- NotD 100.00 - - - 383456.60 383456.60 - - - 383456.60 383456.60 - expected tobe recovered
Total 1439597708.93 18167.50 - 711772.07 1440327648.50 - - - 383456.60 383456.60 1439944191.90
- 189 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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) Provision recovery and reversal of credit impairment of other receivables
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 period - - - -
Reversal for the period - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
As at 30 June 2025 - - 383456.60 383456.60
(5) Details of bad debt provision
Changes for the period
Effect of
Category 01/01/2025 Provision Recovery or changes in
Charge-off Other 30/06/2025
reversal the scope of or write-off changesconsolidation
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 period.- 190 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 period.
(8) The top five balances of other receivables at the end of the period classified by debtor
Proportion Provision
Relationship to total for bad
Name of entity with the Nature Carrying
Company amount
Aging other debts at
receivables the end of
(%) the period
Wharf Holdings Hong Kong Subsidiary Loan torelated parties 1422029387.33 Within 1 year 98.73 -
Shenzhen Chiwan Port
Development Co. Ltd. Subsidiary Others 8353903.44 Within 1 year 0.58 -
China Merchants Investment
Development Company Limited Related Party
Advance
payments 4991722.73 Within 1 year 0.35 -
State Administration of Taxation
Shenzhen Qianhai Shenzhen
Hong Kong Modern Service Third party Others 711772.07 More than 3 0.05 383456.60
Industry Cooperation Zone years
Taxation Bureau
China Securities Depository and
Clearing Corporation Limited Third party Others 619960.00 Within 1 year 0.04 -
Shenzhen Branch
Total —— —— 1436706745.57 —— 99.75 383456.60
- 191 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 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 period
Investment income Other Cash dividends Provision forInvestee 01/01/2025 Increase Decrease under equity comprehensive Other equity or profit Provision for Others 30/06/2025 impairment at the
method income movements declared impairment end of the period
I. Subsidiaries
Ports Development (Hong Kong) Limited 29203045326.23 - - - - - - - - 29203045326.23 -
Zhanjiang Port 3381825528.52 - - - - - - - - 3381825528.52 -
Chiwan Container Terminal Co. Ltd. 421023199.85 - - - - - - - - 421023199.85 -
Shenzhen Chiwan Harbor Container Co. Ltd. 250920000.00 - - - - - - - - 250920000.00 -
Shunkong Port (Note 1) 240013200.00 - - - - - - - - 240013200.00 -
Shenzhen Chiwan Port Development Co. Ltd. 206283811.09 - - - - - - - - 206283811.09 -
Dongguan Shenchiwan Port Affairs Co. Ltd. 186525000.00 - - - - - - - - 186525000.00 -
CM Port 181479422.23 - - - - - - - - 181479422.23 -
Dongguan Shenchiwan Wharf Co. Ltd. 175000000.00 - - - - - - - - 175000000.00 -
Yide Port 131866700.00 - - - - - - - - 131866700.00 -
CM International Tech 130462575.02 - - - - - - - - 130462575.02 -
Zhoushan RoRo 106104786.00 - - - - - - - - 106104786.00 43605014.00
Shenzhen Chiwan Tugboat Co. Ltd. 24000000.00 - - - - - - - - 24000000.00 -
Shenzhen Chiwan International Freight Agency
Co. Ltd. 5500000.00 - - - - - - - - 5500000.00 -
Sanya Merchants Port Development Co. Ltd. 2040000.00 - - - - - - - - 2040000.00 -
Wharf Holdings Hong Kong 1070000.00 - - - - - - - - 1070000.00 -
Chiwan Shipping (Hong Kong) Limited 1051789.43 - - - - - - - - 1051789.43 -
Sub-total 34648211338.37 - - - - - - - - 34648211338.37 43605014.00
II. Associates
Ningbo Zhoushan 17532047355.93 - - 544904895.88 -9233634.93 53477156.48 -440841433.07 - - 17680354340.29 -
China Merchants Northeast Asia Development &
Investment Co. Ltd. 1021905232.79 - - 1060844.26 - - - - - 1022966077.05 -
Antong Holdings 963996902.74 - - 36492704.25 - - - - - 1000489606.99 -
China Merchants Bonded Logistics Co. Ltd. 393184304.83 - - 15896000.00 - - -52642901.24 - - 356437403.59 -
Sub-total 19911133796.29 - - 598354444.39 -9233634.93 53477156.48 -493484334.31 - - 20060247427.92 -
III. Joint ventures
Yantai Port Group Laizhou Port Co. Ltd. 803852105.71 - - 15193.39 - - - - - 803867299.10 -
Fujian Zhaohang Logistics Management
Partnership (Limited Partnership) 637858949.05 - - 20282666.67 - - - - - 658141615.72 -
Shenzhen Gangteng Internet Technology Co. Ltd. 8225982.88 - - -1676558.82 - - - - - 6549424.06 -
Sub-total 1449937037.64 - - 18621301.24 - - - - - 1468558338.88 -
Total 56009282172.30 - - 616975745.63 -9233634.93 53477156.48 -493484334.31 - - 56177017105.17 43605014.00
- 192 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
3. Operating income and operating costs
Item Current period Prior periodIncome Cost Income Cost
Principal operation - - - -
Other operations 10468785.48 1869721.92 8997504.49 1869721.92
Total 10468785.48 1869721.92 8997504.49 1869721.92
- 201 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
4. Investment income
(1) Details of investment income
Item Current period Prior period
Income from long-term equity investments under cost method 766106108.72 450574980.92
Income from long-term equity investments under equity
method 616975745.63 509529672.39
Disposal income from financial assets held for trading 24885123.41 16033315.06
Total 1407966977.76 976137968.37
(2) Income from long-term equity investments under cost method
Investee Current period Prior period Reason for changes
Wharf Holdings Hong Kong 230000000.00 - Changes in profit distribution of investee
Chiwan Container Terminal Co. Ltd. 211732266.55 124392799.44 Changes in profit distribution of investee
Shenzhen Chiwan Harbor Container Co. Ltd. 177558005.36 143167589.81 Changes in profit distribution of investee
Dongguan Shenchiwan Wharf Co. Ltd. 43578585.86 42509038.50 Changes in profit distribution of investee
Shenzhen Chiwan Tugboat Co. Ltd. 38497207.42 28061835.33 Changes in profit distribution of investee
Zhanjiang Port 34498416.94 83925753.46 Changes in profit distribution of investee
Dongguan Shenchiwan Port Affairs Co. Ltd. 12928614.73 13703850.69 Changes in profit distribution of investee
CM Port 9267859.39 6875839.88 Changes in profit distribution of investee
Shenzhen Chiwan Port Development Co. Ltd. 4824079.97 3409806.03 Changes in profit distribution of investee
Shenzhen Chiwan International Freight Agency
Co. Ltd. 2133637.28 957771.62 Changes in profit distribution of investee
Sanya Merchants Port Development Co. Ltd. 984495.20 3360900.00 Changes in profit distribution of investee
CM International Tech 102940.02 - Changes in profit distribution of investee
Chiwan Shipping (Hong Kong) Limited - 209796.16 Changes in profit distribution of investee
Total 766106108.72 450574980.92
1. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
In accordance with the China Securities Regulatory Commission's Compilation Rules for Information
Disclosure and Presentation Rules for Companies Making Public Offering No. 9 -- Calculation and
Disclosure of Return on Net Assets and Earnings per Share (revised in 2010) the weighted average
return on net assets basic earnings per share and diluted earnings per share of the Group for the period
ended 30 June 2025 are as follows:
Profit in reporting period Weighted average EPSreturn on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 4.1932% 1.0542 1.0541
Net profit attributable to ordinary shareholders after
deducting non-recurring profit or loss 4.0208% 1.0109 1.0107
- 202 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE PERIOD FROM 1 JANUARY TO 30 JUNE 2025
(Unless otherwise specified the monetary unit shall be RMB)
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 and loss for the period ended 30 June
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 8718802.44
Government grants recognized in profit or loss (other than grants which are
closely related to the Company's business in line with the national regulations
enjoyed under established standards and have a continuous impact 98482810.89
on the Company's profit or loss)
Income earned from lending funds to non-financial institutions and recognized
in profit or loss 45030077.70
The excess of attributable fair value of identifiable net assets over the
consideration paid for subsidiaries associates and joint ventures -
Gains or losses on exchange of non-monetary assets -
Gains or losses on entrusted investments or asset management -
Losses on assets due to force majeure e.g. natural disasters -
Gains or losses on debt restructuring -
Lump-sum costs incurred by the enterprises as a result of the discontinuation of
relevant business activities e.g. expenditure for layoff of employees etc. -
Gains from transactions with unfair transaction price -
Net profit or loss of subsidiaries recognized as a result of business combination of
enterprises under common control from the beginning of the 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 63388029.42
financial assets and financial liabilities
Reversal of provision for accounts receivable that are tested for
impairment individually 6556669.83
Gains or losses on entrusted loans -
Gains or losses from changes in fair value of investment properties that are
subsequently measured using the fair value model -
One-time effect of adjustments in tax laws and accounting laws and regulations
on profit or loss for the period -
Custodian fees earned from entrusted operation -
Share-based payment expenses recognized once due to the cancellation or
modification of equity incentive plans -
For cash-settled share-based payments gains or losses arising from changes
in fair value of employee benefits payable after the vesting date -
Other non-operating income or expenses other than above 6609284.91
Other profit or loss that meets the definition of non-recurring profit or loss -
Sub-total 228785675.19
Tax effects -25102147.29
Effects of non-controlling interests (after tax) -95731364.63
Total 107952163.27
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