CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
CONTENTS PAGE(S)
AUDITOR'S REPORT 1 - 6
CONSOLIDATED BALANCE SHEET 7 - 8
BALANCE SHEET OF THE COMPANY 9 - 10
CONSOLIDATED INCOME STATEMENT 11
INCOME STATEMENT OF THE COMPANY 12
CONSOLIDATED CASH FLOW STATEMENT 13
CASH FLOW STATEMENT OF THE COMPANY 14
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 15 - 16
THE COMPANY'S STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 17 - 18
NOTES TO THE FINANCIAL STATEMENTS 19 - 189AUDITOR'S REPORT
De Shi Bao (Shen) Zi (24) No. P03112
(Page 1 of 6)
To all the shareholders of China Merchants Port Group Co. Ltd.I. Audit Opinion
We have audited the financial statements of China Merchants Port Group Co. Ltd. (hereinafter
referred to as "the Company") which comprise the consolidated and Company's balance sheets as at
31 December 2023 and the consolidated and Company's income statements the consolidated and
Company's cash flow statements and the consolidated and Company's statements of changes in
shareholders' equity for the year then ended and the notes to the financial statements.In our opinion the accompanying financial statements of the Company are prepared and present fairly
in all material respects the consolidated and Company's financial position as at 31 December 2023
and the consolidated and Company's results of operations and cash flows for the year then ended in
accordance with the Accounting Standards for Business Enterprises.II. Basis for the Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with China Code
of Ethics for Certified Public Accountants and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in
our audit of the financial statements of the current year. These matters were addressed in the context of
our audit of the financial statements as a whole and in forming our opinion thereon we do not provide
a separate opinion on these matters. We determine the followings are key audit matters that need to be
addressed in our report.
1. Subsequent measurement of long-term equity investments in associates
As disclosed in Note (VIII) 12 to the consolidated financial statements as at 31 December 2023 the
carrying amount of the Company's long-term equity investments in associates amounts to RMB
87708124441.05 accounting for 69.85% of the total shareholder's equity. In 2023 the investment
income from associates recognized under the equity method amounts to RMB 5582402904.90
accounting for 74.48% of the consolidated net profit. Since the amount of income from investments in
associates recognized by the Company for the year is significant and its correctness depends on the
financial status and operating results of the investee we determine the above-mentioned subsequent
measurement of the long-term equity investments in associates as a key audit matter of the
consolidated financial statements.- 1 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 2 of 6)
III. Key Audit Matters - continued
1. Subsequent measurement of long-term equity investments in associates - continued
Principal audit procedures we performed for the above key audit matter are as follows:
(1) Understood the certified public accountants of major associates and evaluated their
independence and professional competence;
(2) Identified and assessed the risk of material misstatement in the financial statements of the major
associates from the perspective of auditing the consolidated financial statements of the
Company by reading the financial statements of the major associates and discussing with the
management about the financial performance of the major associates and the significant
judgments and estimates made in the preparation of the financial statements;
(3) Discussed with the component certified public accountants of the major associates about their
assessment of the component audit risk the identification of key audit areas and the
implementation of the corresponding audit procedures to evaluate whether the audit of the
component certified public accountants was appropriate;
(4) Verified whether the accounting policies and accounting periods adopted by the major
associates were consistent with those of the Company. If not checked whether the financial
statements of the major associates have been adjusted according to the accounting policies and
accounting periods of the Company and recognized the amount of investment income under
equity method on that basis.
2. Goodwill impairment
As disclosed in Note (VIII) 20 to the consolidated financial statements as at 31 December 2023 the
goodwill presented in the consolidated financial statements of the Company is RMB 6493002246.44.The management of the Company uses the net amount of fair value less costs of disposal or the present
value of the estimated future cash flows to determine the recoverable amount of the relevant asset
group when testing the goodwill for impairment of which the fair value assessment is based on the
market approach and the forecast of future cash flows and the calculation of the present value include
key assumptions such as growth rate and discount rate. We determine goodwill impairment as a key
audit matter of the consolidated financial statements due to the significant amount of goodwill and that
the management needs to make significant judgments and estimates when conducting goodwill
impairment testing.- 2 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 3 of 6)
III. Key Audit Matters - continued
2. Goodwill impairment - continued
Principal audit procedures we performed for the above key audit matter are as follows:
(1) Assessed the reasonableness of the division of asset group and combination of asset group made
by the management;
(2) Referred to the industry practice to assess whether the management's approach in cash flow
forecast was appropriate and whether the assumptions used were reasonable;
(3) Compared the data used in cash flow forecast with historical data and budget data approved by
the management and assessed the reasonableness of the data used;
(4) Compared the growth rate of the business volume in the forecast period with the growth rate of
the historical business volume and evaluated its reasonableness;
(5) Understood the basis adopted by the management to determine the growth rate of the business
in the subsequent forecast period and assessed its reasonableness;
(6) Assessed the reasonableness of the discount rate adopted by the management in combination
with market risk-free interest rates risk factors etc.;
(7) Used the work of internal evaluation experts to evaluate the appropriateness of the
management's method to assess the recoverable amount of the asset group and evaluate the
reasonableness of the discount rate used by the management in predicting the present value of
cash flows and the growth rate of the subsequent forecast period;
(8) Reviewed whether the calculation of the present value of future cash flows was correct;
(9) Assessed whether the method used to determine the fair value less costs of disposal was
appropriate;
(10) Assessed the adequacy and appropriateness of the disclosure of goodwill impairment testing.
IV. Other Information
The management of the Company is responsible for the other information. The other information
comprises the information included in the 2023 annual report but does not include the consolidated
financial statements and our auditor's report.Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion.- 3 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 4 of 6)
IV. Other Information - continued
In combination with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the audit work performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the
Financial Statements
The management of the Company is responsible for the preparation of the financial statements that
give a true and fair view in accordance with Accounting Standards for Business Enterprises and for
the design performance and maintenance of such internal control that is necessary to enable that the
preparation of financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company's
ability to continue as a going concern disclosing as applicable matters related to going concern and
using the going concern basis of accounting unless the management either intends to liquidate the
Company or to cease operations or has no realistic alternative but to do so.These charged with governance are responsible for overseeing the Company's financial reporting
process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements are free from
material misstatement whether due to fraud or error and to issue an auditor's report that includes an
audit opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with China Standards on Auditing will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually
or in the aggregate they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.- 4 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 5 of 6)
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
As part of an audit in accordance with China Standards on Auditing we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
(1) Identified and assessed the risks of material misstatement of the financial statements whether
due to fraud or error designed and performed audit procedures responsive to those risks and
obtained audit evidence that was sufficient and appropriate to form our opinion. The risk of not
detecting a material misstatement resulting from fraud was higher than for one resulting from
error as fraud may involve collusion forgery intentional omissions misrepresentations or the
override of internal control.
(2) Understood audit-related internal control in order to design audit procedures that were
appropriate in the circumstances.
(3) Evaluated the appropriateness of accounting policies applied and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Concluded on the appropriateness of the management' application of the going concern basis of
accounting. Based on audit evidence obtained concluded on whether the material uncertainty of
events or conditions that may cast significant doubt on the Company's ability to continue as a
going concern existed. If we concluded that a material uncertainty existed we were required to
draw attention in our auditor's report to the related disclosures in the financial statements or to
modify our opinion if such disclosures were inadequate. Our conclusions were based on the
audit evidence obtained up to the date of our auditor's report. However future events or
conditions may cause the Company to cease to continue as a going concern.
(5) Evaluated the overall presentation (including the disclosures) structure and content of the
financial statements and whether the financial statements represented the underlying
transactions and events in a manner that achieved fair presentation.
(6) Obtained sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the financial statements. We
were responsible for the direction supervision and performance of the group audit. We
remained solely responsible for our audit opinion.We communicated with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identified during our audit.We also provided those charged with governance with a statement that we had complied with relevant
ethical requirements of independence and communicated with those charged with governance over all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable related safeguards.- 5 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 6 of 6)
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
From the matters communicated with those charged with governance we determined those matters
that were of most significance in the audit of the financial statements of the current year and were
therefore the key audit matters. We described these matters in our auditor's report unless law or
regulation precluded public disclosure about the matter or when in extremely rare circumstances we
determined that a matter should not be addressed in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.Deloitte Touche Tohmatsu CPA LLP Chinese Certified Public Accountant
(Engagement Partner)
Shanghai China
Li Weihua
Chinese Certified Public Accountant
Wang Hongmei
29 March 2024
The auditor's report and the accompanying financial statements are English translations of the Chinese auditor's report
and statutory financial statements prepared under accounting principles and practices generally accepted in the People's
Republic of China. These financial statements are not intended to present the financial position and results of operations
and cash flows in accordance with accounting principles and practices generally accepted in other countries and
jurisdictions. In case the English version does not conform to the Chinese version the Chinese version prevails.- 6 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Consolidated Balance Sheet
RMB
Item Notes 31/12/2023 31/12/2022(Restated)
Current Assets:
Cash and bank balances (VIII)1 16079646178.24 13615928739.40
Held-for-trading financial assets (VIII)2 4568806108.84 2998781599.63
Notes receivable (VIII)3 325150195.09 36395000.00
Accounts receivable (VIII)4 1103901466.25 1276149689.44
Receivables financing (VIII)5 2001669.46 163766913.10
Prepayments (VIII)6 37664552.30 63627425.42
Other receivables (VIII)7 940014994.01 948842094.30
Including: Interest receivable (VIII)7 - -
Dividends receivable (VIII)7 343386866.06 416040485.62
Inventories (VIII)8 218898192.87 225122821.48
Non-current assets due within one year (VIII)9 17451380.98 902225293.93
Other current assets (VIII)10 189673500.87 185903140.53
Total current assets 23483208238.91 20416742717.23
Non-current Assets:
Long-term receivables (VIII)11 3856466116.99 5661327499.07
Long-term equity investments (VIII)12 96666117776.27 92364293919.05
Investments in other equity instruments (VIII)13 157461648.16 171945275.02
Other non-current financial assets (VIII)14 877576442.83 1745740896.41
Investment properties (VIII)15 4958374968.79 5123690119.56
Fixed assets (VIII)16 28986538326.35 32033326083.50
Including: Fixed assets - cost 51987700820.76 55185206442.91
Accumulated depreciation 22787694400.09 23088313866.49
Provision for impairment of fixed assets 213504483.08 63574868.76
Construction in progress (VIII)17 2909817281.46 2413844407.64
Right-of-use assets (VIII)18 9441668311.22 9342642222.33
Intangible assets (VIII)19 18073062184.72 19277065115.61
Development expenditure (IX)2 50990153.18 17412196.16
Goodwill (VIII)20 6493002246.44 6411426891.09
Long-term prepaid expenses (VIII)21 993793505.29 986356904.90
Deferred tax assets (VIII)22 415063477.03 434498820.95
Other non-current assets (VIII)23 1194155989.62 1186789378.79
Total non-current assets 175074088428.35 177170359730.08
TOTALASSETS 198557296667.26 197587102447.31
- 7 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Consolidated Balance Sheet - continued
RMB
Item Notes 31/12/2023 31/12/2022(Restated)
Current liabilities:
Short-term borrowings (VIII)24 15714045288.97 7164338366.18
Notes payable (VIII)25 73461165.82 -
Accounts payable (VIII)26 691765137.25 811149397.66
Receipts in advance (VIII)27 17387537.36 9886531.59
Contract liabilities (VIII)28 142080101.00 141899551.03
Employee benefits payable (VIII)29 917964606.65 936834718.13
Including: Payroll payable 883913277.13 897442262.83
Welfare payable - -
Taxes payable (VIII)30 923053572.50 917933169.09
Other payables (VIII)31 1654622170.02 1755885258.26
Including: Interest payable (VIII)31 - -
Dividends payable (VIII)31 111897214.27 92374921.29
Non-current liabilities due within one year (VIII)32 6817404289.25 11641223688.95
Other current liabilities (VIII)33 2143842534.53 3161147525.96
Total current liabilities 29095626403.35 26540298206.85
Non-current Liabilities:
Long-term borrowings (VIII)34 18227543954.71 12390099177.85
Bonds payable (VIII)35 14287508564.15 19088293099.02
Including: Preferred shares - -
Perpetual bonds - -
Lease liabilities (VIII)36 1001172206.92 948350914.04
Long-term payables (VIII)37 3822862202.17 3551315590.31
Long-term employee benefits payable (VIII)38 603009921.91 639095931.43
Provisions (VIII)39 85590059.41 35365156.43
Deferred income (VIII)40 1024776557.73 1031273189.74
Deferred tax liabilities (VIII)22 4659638104.37 4855019835.33
Other non-current liabilities (VIII)41 179634263.73 186383117.00
Total non-current liabilities 43891735835.10 42725196011.15
TOTALLIABILITIES 72987362238.45 69265494218.00
Shareholders' equity:
Share capital (VIII)42 2499074661.00 2499074661.00
Including: State capital - -
State-owned corporate capital 2264090797.00 2283118870.00
Collective capital - -
Private capital 218857094.00 195001566.00
Foreign capital 16126770.00 20954225.00
Capital reserve (VIII)43 37076846803.06 34751640835.25
Other comprehensive income (VIII)44 -903626594.35 -689553619.86
Special reserve (VIII)45 34003994.41 26358259.97
Surplus reserve (VIII)46 1095980563.68 1001917449.15
Unappropriated profit (VIII)47 19045313519.75 16701988301.14
Total equity attributable to shareholders of the Company 58847592947.55 54291425886.65
Minority interests 66722341481.26 74030182342.66
TOTAL SHAREHOLDERS' EQUITY 125569934428.81 128321608229.31
TOTALLIABILITIES AND SHAREHOLDERS' EQUITY 198557296667.26 197587102447.31
The accompanying notes form part of the financial statements.The financial statements were signed by the following:
________X__u_S__o_n_g________ _______T_u__X_i_a_o_p_in_g_______ __________H_u__S_h_a_o_d_e_________
Legal Representative Chief Financial Officer Head of Accounting Department
- 8 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Balance Sheet of the Company
RMB
Item Notes 31/12/2023 31/12/2022
Current Assets:
Cash and bank balances 3281038218.84 3333936587.44
Held-for-trading financial assets 1500517808.22 1502601369.86
Prepayments 10075055.61 -
Other receivables (XX)1 1742461670.32 2749637755.23
Including: Interest receivable (XX)1 - -
Dividends receivable (XX)1 167092526.14 147896763.88
Other current assets 10882675.96 7774206.30
Total current assets 6544975428.95 7593949918.83
Non-current Assets:
Long-term receivables 9391615.50 9240200.34
Long-term equity investments (XX)2 55168618338.79 53433613471.49
Investments in other equity instruments 148088364.25 144700378.28
Other non-current financial assets - 950321309.06
Fixed assets 27343639.28 28826135.19
Including: Fixed assets - cost 32478382.04 31811887.38
Accumulated depreciation 5134742.76 2985752.19
Provision for impairment of fixed assets - -
Construction in progress 607774.34 15435512.32
Intangible assets 54876218.77 50303126.12
Development expenditure 38923289.23 6219670.14
Long-term prepaid expenses 665319.42 873700.49
Deferred tax assets 928465.21 928465.21
Total non-current assets 55449443024.79 54640461968.64
TOTAL ASSETS 61994418453.74 62234411887.47
- 9 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Balance Sheet of the Company - continued
RMB
Item Notes 31/12/2023 31/12/2022
Current Liabilities:
Receipts in advance 5358074.44 -
Employee benefits payable 45188572.96 38763907.88
Including: Payroll payable 45032983.18 38672237.18
Welfare payable - -
Taxes payable 1046270.66 1251923.17
Other payables 376323201.93 373569651.65
Including: Interest payable - -
Dividends payable 34577578.12 34577578.12
Non-current liabilities due within one year 5119243623.45 2146233151.54
Other current liabilities 2007190136.98 3017713424.64
Total current liabilities 7554349880.42 5577532058.88
Non-current Liabilities:
Long-term borrowings 7979000000.00 4988000000.00
Bonds payable 3000000000.00 8000000000.00
Deferred tax liabilities 41948362.13 41622256.05
Total non-current liabilities 11020948362.13 13029622256.05
TOTAL LIABILITIES 18575298242.55 18607154314.93
SHAREHOLDERS' EQUITY
Share capital 2499074661.00 2499074661.00
Including: State capital - -
State-owned corporate capital 2264090797.00 2283118870.00
Collective capital - -
Private capital 218857094.00 195001566.00
Foreign capital 16126770.00 20954225.00
Capital reserve 37704543586.11 37749723642.07
Other comprehensive income 120520832.83 99525686.03
Surplus reserve 1095980563.68 1001917449.15
Unappropriated profit 1999000567.57 2277016134.29
TOTAL SHAREHOLDERS' EQUITY 43419120211.19 43627257572.54
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 61994418453.74 62234411887.47
The accompanying notes form part of the financial statements.- 10 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Income Statement
RMB
Item Notes 2023 2022(Restated)
I. Total operating income (VIII)48 15750475780.22 16230489127.55
Less: Operating costs (VIII)48 9318186707.75 9650461712.94
Taxes and surcharges (VIII)49 312998026.19 282249473.46
Administrative expenses (VIII)50 1776641155.38 1765094736.51
Research and development expenses (VIII)51 223739072.07 287706178.70
Financial expenses (VIII)52 1839113328.14 2258713672.42
Including: Interest expenses 2238152796.66 2225162805.79
Interest income 497593921.36 469834098.05
Net exchange loss 85519920.28 477004284.27
Add: Other income (VIII)53 224389260.77 241648070.42
Investment income (VIII)54 6348676940.80 7377655506.33
Including: Income from investments in associates
and joint ventures (VIII)54 5979007585.96 7185182148.75
Gains (Losses) from changes in fair value (Losses are marked
with "-") (VIII)55 73352800.52 -129033650.11
Gains (Losses) from impairment of credit (Losses are marked
with "-") (VIII)56 37284041.18 -223473576.55
Losses from impairment of assets (Losses are marked with "-") (VIII)57 -191297311.28 -22159020.20
Gains from disposal of assets (VIII)58 36759532.61 55130095.52
II. Operating profit 8808962755.29 9286030778.93
Add: Non-operating income (VIII)59 87302024.12 279274452.77
Including: Government grants - 1640553.77
Less: Non-operating expenses (VIII)60 97072840.72 220442254.68
III. Gross profit 8799191938.69 9344862977.02
Less: Income tax expenses (VIII)63 1303579852.93 1112959676.75
IV. Net profit 7495612085.76 8231903300.27
(I) Categorized by continuity of operation
1. Net profit from continuing operation 7495612085.76 8231903300.27
2. Net profit from discontinued operation - -
(II) Categorized by attribution of ownership
1. Net profit attributable to shareholders of the Company 3571800762.16 3338693816.70
2. Profit or loss attributable to minority shareholders 3923811323.60 4893209483.57
V. Other comprehensive income net of tax (VIII)66 209856768.77 1628631938.02
(I) Other comprehensive income attributable to shareholders of
the Company net of tax -214072974.49 208085368.23
1. Other comprehensive income that will not be reclassified to
profit or loss -73874071.89 -22706023.29
(1) Changes from remeasurement of the defined benefit plan 7480103.34 -12793128.73
(2) Other comprehensive income that cannot be reclassified to
profit or loss under the equity method -83841725.07 -11550762.02
(3) Changes in fair value of investments in other equity
instruments 2487549.84 1637867.46
2. Other comprehensive income that will be reclassified
subsequently to profit or loss -140198902.60 230791391.52
(1) Other comprehensive income that can be reclassified to profit
or loss under the equity method -366028318.84 -110193707.53
(2) Translation differences of financial statements denominated
in foreign currencies 225829416.24 340985099.05
(II) Other comprehensive income attributable to minority interests
net of tax 423929743.26 1420546569.79
VI. Total comprehensive income attributable to: 7705468854.53 9860535238.29
(I) Shareholders of the Company 3357727787.67 3546779184.93
(II) Minority shareholders 4347741066.86 6313756053.36
VII. Earnings per share
(I) Basic earnings per share (Yuan/share) 1.43 1.61
(II) Diluted earnings per share (Yuan/share) 1.43 1.61
The accompanying notes form part of the financial statements.- 11 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Income Statement of the Company
RMB
Item Notes 2023 2022
I. Operating income (XX)3 17326885.29 3669891.36
Less: Operating costs (XX)3 3686411.84 2276202.60
Taxes and surcharges 2161621.42 1126365.82
Administrative expenses 167273393.24 154023617.71
Research and development expenses 14046526.98 15151413.80
Financial expenses 397006521.97 361633510.16
Including: Interest expenses 482413617.32 491933634.55
Interest income 89862634.06 144120475.54
Net exchange loss 2296890.14 3785346.40
Add: Other income 206131.06 499438.35
Investment income (XX)4 1597599935.27 1053614451.09
Including: Income from investments in associates
and joint ventures (XX)4 1111522805.93 384257363.02
Losses from changes in fair value (Losses are marked with
"-")-48217517.53-125383212.19
Losses from impairment of assets (Losses are marked with
"-")-43605014.00-
Gains from disposal of assets - 237727.99
II. Operating profit 939135944.64 398427186.51
Add: Non-operating income 18698.11 545089.04
Less: Non-operating expenses 104998.04 18.84
III. Gross profit 939049644.71 398972256.71
Less: Income tax expenses -1581500.55 -8376614.77
IV. Net profit 940631145.26 407348871.48
V. Other comprehensive income net of tax 20995146.80 1625433.48
(I) Other comprehensive income that cannot be reclassified
to profit or loss 3661309.41 1391486.75
1. Changes from remeasurement of the defined benefit plan - -
2. Other comprehensive income that cannot be reclassified to
profit or loss under the equity method 1120319.93 27649.59
3. Changes in fair value of investments in other equity
instruments 2540989.48 1363837.16
(II) Other comprehensive income that will be reclassified to
profit or loss 17333837.39 233946.73
1. Other comprehensive income that can be reclassified
to profit or loss under the equity method 17333837.39 233946.73
2. Translation differences of financial statements denominated
in foreign currencies - -
VI. Total comprehensive income 961626292.06 408974304.96
The accompanying notes form part of the financial statements.- 12 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Cash Flow Statement
RMB
Item Notes 2023 2022
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 16019658434.90 16547850742.82
Receipts of tax refunds 53272648.95 239426543.45
Other cash receipts relating to operating activities (VIII) 67(1) 927564019.09 1141794925.33
Sub-total of cash inflows 17000495102.94 17929072211.60
Cash payments for goods purchased and services received 4550256851.25 4790513865.61
Cash payments to and on behalf of employees 3598624870.64 3612535626.78
Payments of various types of taxes 1418779686.67 1579320175.46
Other cash payments relating to operating activities (VIII) 67(1) 853227059.21 1026325153.40
Sub-total of cash outflows 10420888467.77 11008694821.25
Net Cash Flows from Operating Activities (VIII) 68(1) 6579606635.17 6920377390.35
II. Cash Flows from Investing Activities:
Cash receipts from disposal and recovery of investments 28430740038.14 40894899081.53
Cash receipts from investments income 2329944728.79 2429981136.20
Net cash receipts from disposal of fixed assets intangible assets
and other long-term assets 144845803.86 13812483.21
Net cash receipts from disposals of subsidiaries and
other business units (VIII) 68(3) 1683385533.43 -
Other cash receipts relating to investing activities (VIII) 67(2) 3164955303.27 295064509.34
Sub-total of cash inflows 35753871407.49 43633757210.28
Cash payments to acquire or construct fixed assets intangible
assets and other long-term assets 1929374936.21 2133837244.47
Cash payments to acquire investments 29974648554.87 54509066114.35
Other cash payments relating to investing activities (VIII) 67(2) 82663303.33 954802482.30
Sub-total of cash outflows 31986686794.41 57597705841.12
Net Cash Flows from Investing Activities 3767184613.08 -13963948630.84
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 217520934.61 10642126434.50
Including: Cash receipts from capital contributions from
minority shareholders of subsidiaries 217520934.61 -
Cash receipts from borrowings 29416872247.55 29859438534.05
Cash receipts from issue of bonds 6000000000.00 19248308650.00
Other cash receipts relating to financing activities (VIII) 67(3) 334754229.63 56303169.80
Sub-total of cash inflows 35969147411.79 59806176788.35
Cash repayments of borrowings 31919051211.87 46432911425.29
Cash payments for distribution of dividends or profits or
settlement of interest expenses 5167695546.01 4732910153.42
Including: Payments for distribution of dividends or profits to
minority shareholders of subsidiaries 1955677172.68 1900086012.38
Other cash payments relating to financing activities (VIII) 67(3) 6867093830.32 1124116740.35
Sub-total of cash outflows 43953840588.20 52289938319.06
Net Cash Flows from Financing Activities -7984693176.41 7516238469.29
IV. Effect of Foreign Exchange Rate Changes on Cash
and Cash Equivalents 89206087.64 367287004.46
V. Net Increase in Cash and Cash Equivalents 2451304159.48 839954233.26
Add: Opening balance of cash and cash equivalents (VIII) 68(2) 13567309471.62 12727355238.36
VI. Closing Balance of Cash and Cash Equivalents (VIII) 68(2) 16018613631.10 13567309471.62
The accompanying notes form part of the financial statements.- 13 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Cash Flow Statement of the Company
RMB
Item Notes 2023 2022
I. Cash Flows from Operating Activities:
Other cash receipts relating to operating activities 205894785.22 108295282.75
Sub-total of cash inflows 205894785.22 108295282.75
Cash payments for goods purchased and services received 142500.00 86280.54
Cash payments to and on behalf of employees 111864640.42 102305409.21
Payments of various types of taxes 2203522.03 162077694.07
Other cash payments relating to operating activities 197101786.33 64738420.24
Sub-total of cash outflows 311312448.78 329207804.06
Net Cash Flows from Operating Activities -105417663.56 -220912521.31
II. Cash Flows from Investing Activities:
Cash receipts from disposal and recovery of investments 11200000000.00 33317450238.74
Cash receipts from investment income 934979575.11 770719728.64
Net cash receipts from disposal of fixed assets intangible assets
and other long-term assets - 1002668.00
Other cash receipts relating to investing activities 1948842841.79 50285632.68
Sub-total of cash inflows 14083822416.90 34139458268.06
Cash payments to acquire or construct fixed assets intangible
assets and other long-term assets 23594300.69 42642426.69
Cash payments to acquire investments 11589128994.69 45942721212.13
Other cash payments relating to investing activities 890011664.40 1523809248.36
Sub-total of cash outflows 12502734959.78 47509172887.18
Net Cash Flows from Investing Activities 1581087457.12 -13369714619.12
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions - 10642126434.50
Cash receipts from borrowings 6250000000.00 9171668674.85
Cash receipts from issue of bonds 6000000000.00 16000000000.00
Other cash receipts relating to financing activities 6728017.13 6303169.80
Sub-total of cash inflows 12256728017.13 35820098279.15
Cash repayments of borrowings 12125000000.00 20529408504.85
Cash payments for distribution of dividends or profits or
settlement of interest expenses 1650693345.10 1257422374.13
Other cash payments relating to financing activities 9832313.92 23179821.90
Sub-total of cash outflows 13785525659.02 21810010700.88
Net Cash Flows from Financing Activities -1528797641.89 14010087578.27
IV. Effect of Foreign Exchange Rate Changes on Cash
and Cash Equivalents 176979.73 714582.29
V. Net (Decrease) Increase in Cash and Cash Equivalents
(Losses are marked with "-") -52950868.60 420175020.13
Add: Opening balance of cash and cash equivalents 3333936587.44 2913761567.31
VI. Closing Balance of Cash and Cash Equivalents 3280985718.84 3333936587.44
The accompanying notes form part of the financial statements.- 14 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Statement of Changes in Shareholders' Equity
RMB
2023
Item Equity attributable to shareholders of the Company
Other Including: Minority interests Total shareholders'
Share capital Capital reserve comprehensive Foreign currencyconversion Special reserve Surplus reserve
Unappropriated
income profit
equity
difference
I. Closing balance of the preceding year 2499074661.00 34751640835.25 -691536248.44 -681788363.07 26358259.97 1001917449.15 16679688347.09 73994641893.21 128261785197.23
Add: Changes in accounting policies - - 1982628.58 1982628.58 - - 22299954.05 35540449.45 59823032.08
Corrections of prior period errors - - - - - - - - -
Business combination involving -
enterprises under common control - - - - - - - -
Others - - - - - - - - -
II. Opening balance of the year 2499074661.00 34751640835.25 -689553619.86 -679805734.49 26358259.97 1001917449.15 16701988301.14 74030182342.66 128321608229.31
III. Changes for the year - 2325205967.81 -214072974.49 225829416.24 7645734.44 94063114.53 2343325218.61 -7307840861.40 -2751673800.50
(I) Total comprehensive income - - -214072974.49 225829416.24 - - 3571800762.16 4347741066.86 7705468854.53
(II) Owners' contributions and reduction in
capital - 2325205967.81 - - -317684.31 - -1883909.97 -9190432492.89 -6867428119.36
1. Ordinary shares contributed by
owners - - - - - - - 685424826.14 685424826.14
2. Capital contribution from holders of
other equity instruments - - - - - - - -4222148460.84 -4222148460.84
3. Share-based payment recognized in
shareholders' equity - 1053188.36 - - - - - 523302.32 1576490.68
4. Others - 2324152779.45 - - -317684.31 - -1883909.97 -5654232160.51 -3332280975.34
(III) Profit distribution - - - - - 94063114.53 -1226591633.58 -2477802768.49 -3610331287.54
1. Transfer to surplus reserve - - - - - 94063114.53 -94063114.53 - -
2. Distribution to shareholders - - - - - - -1124583597.45 -2256143657.02 -3380727254.47
3. Others - - - - - - -7944921.60 -221659111.47 -229604033.07
(IV) Transfers within shareholders' equity - - - - - - - - -
1. Capitalization of capital reserve - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - -
4. Retained earnings carried forward
from other comprehensive income - - - - - - - - -
5. Others - - - - - - - - -
(V) Special reserve - - - - 7963418.75 - - 12653333.12 20616751.87
1. Transfer to special reserve in the year - - - - 61589514.21 - - 66309179.08 127898693.29
2. Amount utilized in the year - - - - -53626095.46 - - -53655845.96 -107281941.42
(VI) Others - - - - - - - - -
IV. Closing balance of the year 2499074661.00 37076846803.06 -903626594.35 -453976318.25 34003994.41 1095980563.68 19045313519.75 66722341481.26 125569934428.81
- 15 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
2022 (Restated)
Equity attributable to shareholders of the Company
Item Other Including: Total
Share capital Capital reserve comprehensive Foreign currency Special Unappropriated Minority interests shareholders'
income conversion reserve
Surplus reserve profit equity
difference
I. Closing balance of the preceding year 1922365124.00 23592702758.70 -890125318.18 -1020790833.54 9184429.12 961182562.00 14205879106.49 71234238229.35 111035426891.48
Add: Changes in accounting policies - - - - - - 21052360.17 33445604.29 54497964.46
Corrections of prior period errors - - - - - - - - -
Business combination involving
enterprises under - - - - - - - - -
common control
Others - - - - - - - - -
II. Opening balance of the year 1922365124.00 23592702758.70 -890125318.18 -1020790833.54 9184429.12 961182562.00 14226931466.66 71267683833.64 111089924855.94
III. Changes for the year 576709537.00 11158938076.55 200571698.32 340985099.05 17173830.85 40734887.15 2475056834.48 2762498509.02 17231683373.37
(I) Total comprehensive income - - 208085368.23 340985099.05 - - 3338693816.70 6313756053.36 9860535238.29
(II) Owners' contributions and reduction
in capital 576709537.00 11158938076.55 - - - - - -683588937.26 11052058676.29
1. Ordinary shares contributed by
owners 576709537.00 10055823793.40 - - - - - 971135730.31 11603669060.71
2. Capital contribution from holders
of other equity instruments - - - - - - - - -
3. Share-based payment recognized in
shareholders' equity - -4365536.60 - - - - - -3266354.51 -7631891.11
4. Others - 1107479819.75 - - - - - -1651458313.06 -543978493.31
(III) Profit distribution - - - - - 40734887.15 -871150652.13 -2897141819.77 -3727557584.75
1. Transfer to surplus reserve - - - - - 40734887.15 -40734887.15 - -
2. Transfer to general risk reserve - - - - - - - - -
3. Distribution to shareholders - - - - - - -826617003.32 -2698588539.77 -3525205543.09
4. Others - - - - - - -3798761.66 -198553280.00 -202352041.66
(IV) Transfers within shareholders' equity - - -7513669.91 - - - 7513669.91 - -
1. Capitalization of capital reserve - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - -
4. Retained earnings carried forward
from other - - -7513669.91 - - - 7513669.91 - -
comprehensive income
5. Others - - - - - - - - -
(V) Special reserve - - - - 17173830.85 - - 29473212.69 46647043.54
1. Transfer to special reserve in the
year - - - - 62696039.72 - - 86478912.67 149174952.39
2. Amount utilized in the year - - - - -45522208.87 - - -57005699.98 -102527908.85
(VI) Others - - - - - - - - -
IV. Closing balance of the year 2499074661.00 34751640835.25 -689553619.86 -679805734.49 26358259.97 1001917449.15 16701988301.14 74030182342.66 128321608229.31
The accompanying notes form part of the financial statements.- 16 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
The Company's Statement of Changes in Shareholders' Equity
RMB
2023
Item OtherShare capital Capital reserve comprehensive Special reserve Surplus reserve Unappropriated Total shareholders'
income profit equity
I. Closing balance of the preceding year 2499074661.00 37749723642.07 99525686.03 - 1001917449.15 2277016134.29 43627257572.54
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the year 2499074661.00 37749723642.07 99525686.03 - 1001917449.15 2277016134.29 43627257572.54
III. Changes for the year - -45180055.96 20995146.80 - 94063114.53 -278015566.72 -208137361.35
(I) Total comprehensive income - - 20995146.80 - - 940631145.26 961626292.06
(II) Owners' contributions and reduction in capital - -45180055.96 - - - - -45180055.96
1. Ordinary shares contributed by owners - - - - - - -
2. Share-based payment recognized in shareholders' equity - - - - - - -
3. Share-based payment recognized in owners' equity - 1890784.31 - - - - 1890784.31
4. Others - -47070840.27 - - - - -47070840.27
(III) Profit distribution - - - - 94063114.53 -1218646711.98 -1124583597.45
1. Transfer to surplus reserve - - - - 94063114.53 -94063114.53 -
2 Distribution to shareholders - - - - - -1124583597.45 -1124583597.45
3. Others - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss offset by surplus reserve - - - - - - -
4. Retained earnings carried forward from other
comprehensive income - - - - - - -
5. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Transfer to special reserve in the year - - - - - - -
2. Amount utilized in the year - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the year 2499074661.00 37704543586.11 120520832.83 - 1095980563.68 1999000567.57 43419120211.19
- 17 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
2022
Item OtherShare capital Capital reserve comprehensive Special reserve Surplus reserve Unappropriated Total shareholders'
income profit equity
I. Closing balance of the preceding year 1922365124.00 27594079596.13 105412294.52 - 961182562.00 2729507111.31 33312546687.96
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the year 1922365124.00 27594079596.13 105412294.52 - 961182562.00 2729507111.31 33312546687.96
III. Changes for the year 576709537.00 10155644045.94 -5886608.49 - 40734887.15 -452490977.02 10314710884.58
(I) Total comprehensive income - - 1625433.48 - - 407348871.48 408974304.96
(II) Owners' contributions and reduction in capital 576709537.00 10155644045.94 - - - - 10732353582.94
1. Ordinary shares contributed by owners 576709537.00 10055823793.40 - - - - 10632533330.40
2. Share-based payment recognized in shareholders' equity - -6388558.75 - - - - -6388558.75
3. Others - 106208811.29 - - - - 106208811.29
(III) Profit distribution - - - - 40734887.15 -867351890.47 -826617003.32
1. Transfer to surplus reserve - - - - 40734887.15 -40734887.15 -
2. Transfer to general risk reserve - - - - - - -
3. Distribution to shareholders - - - - - -826617003.32 -826617003.32
4. Others - - - - - - -
(IV) Transfers within shareholders' equity - - -7512041.97 - - 7512041.97 -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss offset by surplus reserve - - - - - - -
4. Retained earnings carried forward from other
comprehensive income - - -7512041.97 - - 7512041.97 -
5. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Transfer to special reserve in the year - - - - - - -
2. Amount utilized in the year - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the year 2499074661.00 37749723642.07 99525686.03 - 1001917449.15 2277016134.29 43627257572.54
The accompanying notes form part of the financial statements.- 18 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Group Co. Ltd. (hereinafter referred to as the "Company") is a stock
limited company incorporated in Shenzhen Guangdong Province on 16 January 1993.The headquarters of the Company is located in Shenzhen Guangdong Province. The Company
and its subsidiaries (collectively the "Group") are actually engaged in the principal operating
activities of port service bonded logistics service and other businesses such as property
development and investment.The Company's and consolidated financial statements were approved by the Board of Directors on
29 March 2024.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") issued by
the Ministry of Finance ("MoF"). In addition the Group has disclosed relevant financial
information in accordance with Information Disclosure and Presentation Rules for Companies
Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in
2023).
Going concern
As at 31 December 2023 the Group had total current liabilities in excess of total current assets by
RMB 5612418164.44. As at 31 December 2023 the Group had available and unused line of
credit and bonds amounting to RMB 69439268355.68 which is greater than the balance of the
net current liabilities. The Group can obtain financial support from the available line of credit and
bonds when needed. Therefore the financial statements have been prepared on a going concern
basis.(III) STATEMENT OF COMPLIANCE WITH THE ASBE
The financial statements of the Company have been prepared in accordance with ASBE and
present truly and completely the Company's and consolidated financial position as at 31
December 2023 and the Company's and consolidated results of operations and cash flows for the
year then ended.(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting year
The Group has adopted the calendar year as its accounting year e.g. from 1 January to 31
December.- 19 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
2. Operating cycle
An operating cycle refers to the period since when an enterprise purchases assets for processing
purpose till the realization of those assets in cash or cash equivalents. The Group is principally
engaged in the rendering of port service bonded logistics service and other businesses such as
property development and investment with one year being an operating cycle.
3. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its domestic subsidiaries operate. Therefore the Company and its domestic subsidiaries
choose RMB as their functional currency. The Company's overseas subsidiaries choose their
functional currencies on the basis of the primary economic environment in which they operate.The Company adopts RMB to prepare its financial statements.
4. Method for determination of materiality criteria and basis for selection
Item Materiality criteria
Significant prepayments aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends receivable aged more than 1 year The amount exceeds RMB 50 million individually
Significant other receivables for which bad debt
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≥
investments 2% of the amount of total assets
Significant construction in progress The year-end carrying amount of an individual construction inprogress ranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress≥
in progress 20% of the amount of total assets
Significant accounts payable aged more than 1 year The amount exceeds RMB 10 million individually
Significant receipts in advance aged more than 1 year The amount exceeds RMB 10 million individually
Significant contract liabilities aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends payable aged more than 1 year The amount exceeds RMB 50 million individually
Significant other payables aged more than 1 year The amount exceeds RMB 10 million individually
Cash flows from significant investing activities The amount exceeds 0.5% of the amount of total assets individually
The amount of total revenue or total assets of subsidiaries exceeds
Significant non-wholly owned subsidiaries 15% of the amount of total consolidated revenue or total
consolidated assets
Joint ventures or associates in which the carrying amount of a long-
term equity investment accounts for≥10% of the amount of total
Significant joint ventures or associates consolidated assets or in which the investment income recognized
under the equity method accounts for≥10% of the amount of total
consolidated profit
The amount exceeds 0.3% of the amount of total assets individually
Significant commitments including reorganization mergers and acquisitions and building of
construction in progress etc.- 20 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
5. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for financial instruments which
are measured at fair value the Group adopts the historical cost as the principle of measurement of
the financial statements. Upon being restructured into a stock company the fixed assets and
intangible assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department. Where assets
are impaired provisions for asset impairment are made in accordance with the relevant
requirements.Where the historical cost is adopted as the measurement basis assets are recorded at the amount
of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the
time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or
the contractual amounts for assuming the present obligation or at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date regardless of whether
that price is directly observable or estimated using valuation technique. Fair value measurement
and/or disclosure in the financial statements are determined according to the above basis.In the measurement of non-financial assets at fair value market participants' ability to best utilize
such assets to generate most economic benefits or the ability to sell such assets to other market
participants who are able to best utilize the assets to generate economic benefits is taken into
account.For financial assets of which transaction prices are the fair value on initial recognition and of
which valuation technique involving unobservable input is used in subsequent measurement the
valuation technique in the course of valuation is adjusted to enable the result of initial recognition
based on the valuation technique equal to the transaction price.Fair value measurements are categorized into Level 1 2 or 3 based on the degree to which the
inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs other than quoted prices included within Level 1 that are
observable for the asset or liability either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.- 21 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference any excess shall be adjusted against retained earnings.Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
6.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same
party or parties before and after the combination.The cost of combination is the aggregate of the fair values at the acquisition date of the assets
given liabilities incurred or assumed and equity securities issued by the acquirer in exchange for
control of the acquiree. Where a business combination not involving enterprises under common
control is achieved in stages that involve multiple transactions the cost of combination is the sum
of the consideration paid at the acquisition date and the fair value at the acquisition date of the
acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of
auditing legal services valuation and consultancy services etc.) and other administrative
expenses attributable to the business combination are recognized in profit or loss in the periods
when they are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.- 22 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 and goodwill
- continued
When a business combination contract provides for the acquirer's recovery of consideration
previously paid contingent on one or multiple future event(s) the Group recognizes the contingent
consideration provided in the contract as an asset as part of the consideration transferred in the
business combination and includes it in the cost of business combination at the fair value at the
acquisition date. Within 12 months after the acquisition where the contingent consideration needs
to be adjusted as new or further evidences are obtained in respect of the circumstances existed at
the acquisition date the adjustment shall be recognized and the amount originally recognized in
goodwill or non-operating income shall be adjusted. A change in or adjustment to the contingent
consideration under other circumstances shall be accounted for in accordance with Accounting
Standards for Business Enterprise No. 22 - Financial Instruments: Recognition and Measurement
and Accounting Standards for Business Enterprises No. 13 - Contingencies. Any change or
adjustment is included in profit or loss for the current period.Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets the difference is treated as an asset and recognized as goodwill which is
measured at cost on initial recognition. Where the cost of combination is less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets the acquirer reassesses the
measurement of the fair values of the acquiree's identifiable assets liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable
net assets the acquirer recognizes the remaining difference immediately in profit or loss for the
current period.If either the fair values of identifiable assets liabilities and contingent liabilities acquired in a
combination or the cost of business combination can be determined only provisionally by the end
of the period in which the business combination was affected the acquirer recognizes and
measures the combination using those provisional values. Any adjustments to those provisional
values within twelve months after the acquisition date are treated as if they had been recognized
and measured on the acquisition date.Goodwill arising from a business combination is measured at cost less accumulated impairment
losses and is presented separately in the consolidated financial statements.- 23 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
7. Consolidated financial statements
7.1 Determination criteria of control
Control exists when the investor has power over the investee; is exposed or has rights to variable
returns from its involvement with the investee; and has the ability to use its power over the
investee to affect its returns. The Group reassesses whether or not it controls an investee if facts
and circumstances indicate that there are changes in the above elements of the definition of
control.
7.2 Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control.Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and
ceases when the Group loses control of the subsidiary.For a subsidiary already disposed of by the Group the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated cash flow statement as appropriate.For subsidiaries acquired through a business combination involving enterprises not under
common control the operating results and cash flows from the acquisition date (the date when
control is obtained) are included in the consolidated income statement and consolidated cash flow
statement as appropriate.No matter when the business combination occurs in the reporting period subsidiaries acquired
through a business combination involving enterprises under common control or the party being
absorbed under merger by absorption are included in the Group's scope of consolidation as if they
had been included in the scope of consolidation from the date when they first came under the
common control of the ultimate controlling party. Their operating results and cash flows from the
date when they first came under the common control of the ultimate controlling party are included
in the consolidated income statement and consolidated cash flow statement as appropriate.The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.Where the accounting policies and accounting periods adopted by subsidiaries are inconsistent
with those of the Company appropriate adjustments are made to the subsidiaries' financial
statements in accordance with the accounting policies of the Company.All significant intra-group balances and transactions are eliminated on consolidation.- 24 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
7. Consolidated financial statements - continued
7.2 Preparation of consolidated financial statements - continued
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet under the line
item of shareholders' equity. The portion of net profits or losses of subsidiaries for the period
attributable to minority interests is presented as "minority interests" in the consolidated income
statement under the line item of "net profit". The portion of comprehensive income of subsidiaries
for the period attributable to minority interests is presented as "total comprehensive income
attributable to minority shareholders" in the consolidated income statement under the line item of
"total comprehensive income".When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of owners' equity of the
subsidiary the excess amount is still allocated against minority interests.Acquisition of minority interests or disposal of interests in a subsidiary that does not result in the
loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts
of the Company's interests and minority interests are adjusted to reflect the changes in their
relative interests in the subsidiary. The difference between the amount by which the minority
interests are adjusted and the fair value of the consideration paid or received is adjusted to capital
reserve. If the capital reserve is not sufficient to absorb the difference the excess is adjusted
against retained earnings.For the stepwise acquisition of equity interest till acquiring control after a few transactions and
leading to business combination not involving enterprises under common control it shall be dealt
with based on whether it belongs to 'package deal': if it belongs to 'package deal' it will be
accounted for as a transactions to acquire control; if it does not belong to 'package deal' it will be
accounted for as a transaction to acquire control on acquisition date and the fair value of acquiree'
shares held before acquisition date will be revalued and the difference between fair value and
carrying amount will be recognized in profit or loss of the current period; if acquiree' shares held
before acquisition date involve changes in other comprehensive income and other changes in
owners' equity under equity method it will be transferred to income of acquisition date.When the Group loses control over a subsidiary due to disposal of equity investment or other
reasons any retained interest is re-measured at its fair value at the date when control is lost. The
difference between (i) the aggregate of the consideration received on disposal and the fair value of
any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated
from the acquisition date according to the original proportion of ownership interests is recognized
as investment income in the period in which control is lost and the goodwill is offset accordingly.Other comprehensive income associated with investment in the former subsidiary is reclassified to
investment income in the period in which control is lost.- 25 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
7. Consolidated financial statements - continued
7.2 Preparation of consolidated financial statements - continued
When the Group loses control of a subsidiary in two or more arrangements (transactions) terms
and conditions of the arrangements (transactions) and their economic effects are considered. One
or more of the following indicate that the Group shall account for the multiple arrangements as a
'package deal': (i) they are entered into at the same time or in contemplation of each other; (ii)
they form a complete transaction designed to achieve an overall commercial effect; (iii) the
occurrence of one transaction is dependent on the occurrence of at least one other transaction; (iv)
one transaction alone is not economically justified but it is economically justified when
considered together with other transactions. Where the transactions of disposal of equity
investments in a subsidiary until the loss of control are assessed as a package deal these
transactions are accounted for as one transaction of disposal of a subsidiary with loss of control.Before losing control the difference of consideration received on disposal and the share of net
assets of the subsidiary continuously calculated from acquisition date is recognized as other
comprehensive income. When losing control the cumulated other comprehensive income is
transferred to profit or loss of the period of losing control. If the transactions of disposal of equity
investments in a subsidiary are not assessed as a package deal these transactions are accounted
for as unrelated transactions.
8. Joint arrangements
There are two types of joint arrangements - joint operations and joint ventures. The classification
is based on the rights and obligations of the parties under the joint venture arrangement taking
into account factors such as the structure legal form and contractual terms of the arrangement. A
joint operation is a joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets and obligations for the liabilities relating to the
arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of
the arrangement have rights to the net assets of the arrangement.The Group accounts for investments in joint ventures using equity method. Refer to Note (IV)
15.3.2 "Long-term equity investments accounted for using the equity method" for details.
When a group entity undertakes its activities under joint operations the Group as a joint operator
recognizes in relation to its interest in a joint operation: - its assets including its share of any
assets held jointly; its liabilities including its share of any liabilities incurred jointly; its revenue
from the sale of its share of the output arising from the joint operation; its share of the revenue
from the sale of the output by the joint operation; and its expenses including its share of any
expenses incurred jointly. The Group accounts for the assets liabilities revenues and expenses
relating to its interest in a joint operation in accordance with the accounting standards applicable
to the particular assets liabilities revenues and expenses.- 26 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
9. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term (generally due within 3 months since the acquisition date)
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
10. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies
10.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded on initial recognition by applying the spot exchange
rate on the date of the transaction.At the balance sheet date foreign currency monetary items are translated into functional currency
using the spot exchange rates at the balance sheet date. Exchange differences arising from the
differences between the spot exchange rates prevailing at the balance sheet date and those on
initial recognition or at the previous balance sheet date are recognized in profit or loss for the
period except that (1) exchange differences related to a specific-purpose borrowing denominated
in foreign currency that qualify for capitalization are capitalized as part of the cost of the
qualifying asset during the capitalization period; (2) exchange differences related to hedging
instruments for the purpose of hedging against foreign currency risks are accounted for using
hedge accounting; (3) exchange differences arising from changes in the carrying amounts (other
than the amortized cost) of monetary items at fair value through other comprehensive income are
recognized as other comprehensive income.When the consolidated financial statements include foreign operation(s) if there is foreign
currency monetary item constituting a net investment in a foreign operation exchange differences
arising from changes in exchange rates are recognized as "exchange differences arising from
translation of financial statements denominated in foreign currencies" in other comprehensive
income and in profit or loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions; the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date when the fair value is determined.Difference between the re-translated functional currency amount and the original functional
currency amount is treated as changes in fair value (including changes in exchange rate) and is
recognized in profit or loss or as other comprehensive income.- 27 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
10. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
10.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements financial statements of a
foreign operation are translated from the foreign currency into RMB using the following method:
assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the
balance sheet date; shareholders' equity items except for unappropriated profit are translated at the
spot exchange rates at the dates on which such items arose; all items in the income statement as
well as items reflecting the distribution of profits are translated at the average exchange rates of
the accounting period of the consolidated financial statements; the opening balance of
unappropriated profit is the translated closing balance of the previous year's unappropriated profit;
the closing balance of unappropriated profit is calculated and presented on the basis of each
translated income statement and profit distribution item. The difference between the translated
assets and the aggregate of liabilities and shareholders' equity items is recognized as other
comprehensive income and included in shareholders' equity.Cash flows arising from a transaction in foreign currency and the cash flows of a foreign
subsidiary are translated at average exchange rate during the accounting period of consolidated
financial statements. The effect of exchange rate changes on cash and cash equivalents is regarded
as a reconciling item and presented separately in the cash flow statement as "effect of exchange
rate changes on cash and cash equivalents".The closing balances and the comparative figures of previous year are presented at the translated
amounts in the previous year's financial statements.On disposal of the Group's entire interest in a foreign operation or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons the Group transfers the
accumulated exchange differences arising from translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under other
comprehensive income to profit or loss in the period in which the disposal occurs.In case of a disposal of part equity investments or other reason leading to lower interest
percentage in foreign operations but does not result in the Group losing control over a foreign
operation the exchange differences arising from the translation of foreign currency statements
related to this disposed part are re-attributed to minority interests and are not recognized in profit
or loss. For partial disposals of equity interests in foreign operations which are associates or joint
ventures the proportionate share of the accumulated exchange differences arising from translation
of statements of foreign operations is reclassified to profit or loss.- 28 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
11. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.For financial assets purchased or sold in regular ways assets to be received and liabilities to be
assumed are recognized on the transaction date or assets sold are derecognized on that date.Financial assets and financial liabilities are initially measured at fair value (the method for
determining the fair values of the financial assets and financial liabilities is set out in related
disclosures under "basis of accounting and principle of measurement" in note(IV) 5). For financial
assets and financial liabilities at fair value through profit or loss transaction costs are immediately
recognized in profit or loss. For other financial assets and financial liabilities transaction costs are
included in their initial recognized amounts. Upon initial recognition of contract assets notes
receivable and accounts receivable that do not contain significant financing component or without
considering the financing component included in the contract with a term not exceeding one year
under the Accounting Standards for Business Enterprises No. 14 - Revenue ("Revenue
Standards") the Group adopts the transaction price as defined in the Revenue Standards for initial
measurement.The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating the interest income or interest expenses over the relevant
accounting periods.The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the gross carrying amount of the
financial asset or to the amortized cost of the financial liability. When calculating the effective
interest rate the Group estimates future cash flows considering all contractual terms of the
financial asset or financial liability (such as repayment in advance extension call option or other
similar options etc.) (without considering the expected credit losses).The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognized net of principal repaid plus or less the cumulative amortized
amount arising from amortization of the difference between the amount initially recognized and
the amount at the maturity date using the effective interest method net of cumulative credit loss
allowance (only applicable to financial assets).
11.1 Classification recognition and measurement of financial assets
Subsequent to initial recognition the Group's financial assets of various categories are
subsequently measured at amortized cost at fair value through other comprehensive income or at
fair value through profit or loss.- 29 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
If the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding and the financial
asset is held within a business model whose objective is achieved by collecting contractual cash
flows the Group classifies such financial asset as financial assets at amortized cost which include
cash and bank balances notes receivable accounts receivable other receivables debt investments
and long-term receivables etc.If the contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding and the financial
asset is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling the financial asset the Group classifies such financial asset as financial
assets at FVTOCI. The accounts receivable and notes receivable classified as at FVTOCI upon
acquisition are presented under receivables financing while the remaining items due within one
year (inclusive) upon acquisition are presented under other current assets. Other financial assets of
such type are presented as other debt investments if they are due after one year since the
acquisition or presented under non-current assets due within one year if they are due within one
year (inclusive) since the balance sheet date.On initial recognition the Group may irrevocably designate non-trading equity instruments other
than contingent consideration recognized through business combination not involving enterprises
under common control as financial assets at FVTOCI on an individual basis. Such financial
assets at FVTOCI are presented as investments in other equity instruments.A financial asset is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of selling in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the
Group manages together and there is objective evidence that the Group has a recent actual
pattern of short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.Financial assets measured at fair value through profit or loss ("FVTPL") include those classified
as financial assets at FVTPL and those designated as financial assets at FVTPL.Financial assets not satisfying the criteria of classification as financial assets at amortized
cost and financial assets at FVTOCI are classified as financial assets at FVTPL.Upon initial recognition the Group may irrevocably designate the financial assets as at
FVTPL if doing so eliminates or significantly reduces accounting mismatch.- 30 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Financial assets at FVTPL other than derivative financial assets are presented as financial assets
held-for-trading. Financial assets with a maturity over one year since the balance sheet date (or
without a fixed maturity) and expected to be held for over one year are presented under other non-
current financial assets.
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using
the effective interest method. Gain or loss arising from impairment or derecognition is recognized
in profit or loss.For financial assets measured at amortized cost the Group recognizes interest income using
effective interest method. The Group calculates and recognizes interest income through gross
carrying amount of financial assets multiplying effective interest rate except for the following
circumstances:
For purchased or originated credit-impaired financial assets the Group calculates and
recognizes the interest income based on amortized cost of the financial asset and the
effective interest rate through credit adjustment since initial recognition.
11.1.2 Financial assets at FVTOCI
For financial assets classified as at FVTOCI except for the impairment losses or gains and the
interest income and exchange losses or gains calculated using the effective interest method which
are included in profit or loss for the period the changes in fair value are included in other
comprehensive income. The amounts included in profit or loss for each period are equivalent to
that as if the financial assets have been always measured at amortized cost. Upon derecognition
the accumulated gains or losses previously included in other comprehensive income are
transferred to profit or loss for the period.Changes in fair value of non-trading equity instrument investments designated as financial assets
at FVTOCI are recognized in other comprehensive income and the cumulative gains or losses
previously recognized in other comprehensive income allocated to the part derecognized are
transferred and included in retained earnings. During the period in which the Group holds the
non-trading equity instruments revenue from dividends is recognized in profit or loss for the
current period when (1) the Group has established the right of collecting dividends; (2) it is
probable that the associated economic benefits will flow to the Group; and (3) the amount of
dividends can be measured reliably.- 31 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 ("ECL").For all contract assets notes receivable and accounts receivable arising from transactions
regulated by Revenue Standards and lease receivables arising from transactions regulated by the
Accounting Standards for Business Enterprises No. 21 - Leases the Group recognizes the
provision for losses at an amount equivalent to lifetime ECL.For other financial instruments (other than purchased or originated credit-impaired financial
assets) the Group assesses the changes in credit risk since initial recognition of relevant financial
instruments at each balance sheet date. If the credit risk has increased significantly since initial
recognition of the financial instruments the Group recognizes the provision for losses at an
amount equivalent to lifetime ECL; if the credit risk has not increased significantly since initial
recognition of the financial instruments the Group recognizes the provision for losses at an
amount equivalent to 12-month ECL. The increase or reversal of credit loss provision for financial
assets other than those classified as at FVTOCI is recognized as impairment loss or gain and
included in profit or loss for the period. For financial assets classified as at FVTOCI the credit
loss provision is recognized in other comprehensive income and the impairment loss or gain is
included in profit or loss for the period without reducing the carrying amount of the financial
assets in the balance sheet.Where the Group has measured the provision for losses at an amount equivalent to lifetime ECL
of a financial instrument in prior accounting period but the financial instrument no longer
satisfies the criteria of significant increase in credit risk since initial recognition at the current
balance sheet date the Group recognizes the provision for losses of the financial instrument at an
amount equivalent to 12-month ECL at the current balance sheet date with any resulting reversal
of provision for losses recognized as impairment gains in profit or loss for the period.- 32 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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;
- 33 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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.
(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).- 34 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 ECL of relevant financial instruments using the following methods:
For financial assets the credit loss is the present value of the difference between the
contractual cash flows that are due to the Group under the contract and the cash flows that
the Group expects to receive;
For undrawn loan commitments (refer to Note IV 11.4.1.3 for the detail of accounting
policies) the credit loss is the present value of the difference between the contractual cash
flows that are due to the Group if the holder of the loan commitments draws down the loan
and the cash flows that the Group expects to receive if the loan is drawn down. The Group's
estimation of the ECL for loan commitments is consistent with its expectation of the loan
commitments drawn down.For financial guarantee contracts (refer to Note IV 11.4.1.3 for the detail of accounting
policies) the credit loss is the present value of the expected payments to reimburse the
holder for the credit loss incurred less any amounts that the Group expects to receive from
the holder the debtor or any other party.For financial assets credit-impaired at the balance sheet date but not purchased or originated
credit-impaired the credit loss is the difference between the gross carrying amount of the
financial assets and the present value of estimated future cash flows discounted at the
original effective interest rate.The factors reflected by the Group's measurement of ECL of financial instruments include:
unbiased probability weighted average amount recognized by assessing a series of possible results;
time value of money; reasonable and supportable information related to historical events current
condition and forecast of future economic position that is available without undue cost or effort at
the balance sheet date.
11.2.4 Write-down of financial assets
When the Group no longer reasonably expects that the contractual cash flows of financial assets
can be collected in aggregate or in part the Group will directly write down the gross carrying
amount of the financial assets which constitutes derecognition of relevant financial assets.
11.3 Transfer of financial assets
The Group will derecognize a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.- 35 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset and it retains control of the financial asset the Group will recognize the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognize an
associated liability. The Group will measure relevant liabilities as follows:
For transferred financial assets carried at amortized cost the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortized cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortized cost of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant
liabilities are not designated as financial liabilities at fair value through profit or loss.For transferred financial assets carried at fair value the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less fair value of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of fair value of obligations assumed by the Group
(if the Group assumes relevant obligations upon transfer of financial assets). Accordingly
the fair value of relevant rights and obligations shall be measured on an individual basis.For the transfer of a financial asset in its entirety that satisfies the derecognition criteria the
difference between (1) the carrying amount of the financial asset transferred and (2) the sum of
the consideration received from the transfer and any cumulative gain or loss that has been
recognized in other comprehensive income is recognized in profit or loss. Where the transferred
assets are non-trading equity instrument investments designated as at FVTOCI cumulative gains
or losses previously recognized in other comprehensive income are transferred out and included in
retained earnings.If a part of the transferred financial asset qualifies for derecognition the overall carrying amount
of the financial asset prior to transfer is allocated between the part that continues to be recognized
and the part that is derecognized based on the respective fair value of those parts at the date of
transfer. The difference between (1) the carrying amount allocated to the part derecognized on the
date of derecognition; and (2) the sum of the consideration received for the part derecognized and
any cumulative gain or loss allocated to the part derecognized which has been previously
recognized in other comprehensive income is recognized in profit or loss. Where the transferred
assets are non-trading equity instrument investments designated as at FVTOCI cumulative gains
or losses previously recognized in other comprehensive income are transferred out and included in
retained earnings.For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria the
Group continues to recognize the transferred financial asset in its entirety. The consideration
received from transfer of assets is recognized as a liability upon receipt.- 36 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Financial instruments issued by the Group or their components are classified into financial
liabilities or equity instruments on the basis of the substance of the contractual arrangements and
the economic nature not only the legal form together with the definition of financial liability and
equity instrument on initial recognition.
11.4.1 Classification recognition and measurement of financial liabilities
On initial recognition financial liabilities are classified into financial liabilities at FVTPL and
other financial liabilities.
11.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives
classified as financial liabilities) and those designated as at FVTPL. Except for derivative
financial liabilities presented separately the financial liabilities at FVTPL are presented as held-
for-trading financial liabilities.A financial liability is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of repurchasing in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the
Group manages together and there is objective evidence that the Group has a recent actual
pattern of short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.A financial liability may be designated as at FVTPL on initial recognition when one of the
following conditions is satisfied: (i) Such designation eliminates or significantly reduces
accounting mismatch; or (ii) The Group makes management and performance evaluation on a fair
value basis in accordance with the Group's formally documented risk management or investment
strategy and reports to key management personnel on that basis. (iii) The qualified hybrid
financial instrument combines financial asset with embedded derivatives.Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses
arising from changes in fair value and any dividends or interest expenses paid on the financial
liabilities are recognized in profit or loss.- 37 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
For a financial liability designated as at FVTPL the amount of changes in fair value of the
financial liability that are attributable to changes in the credit risk of that liability shall be
presented in other comprehensive income while other changes in fair value are included in profit
or loss for the current period. Upon the derecognition of such financial liability the accumulated
amount of changes in fair value that are attributable to changes in the credit risk of that liability
which was recognized in other comprehensive income is transferred to retained earnings. Any
dividend or interest expense on the financial liabilities is recognized in profit or loss. If the
accounting treatment for the impact of the change in credit risk of such financial liability in the
above ways would create or enlarge an accounting mismatch in profit or loss the Group shall
present all gains or losses on that liability (including the effects of changes in the credit risk of
that liability) in profit or loss for the period.For financial liabilities arising from contingent consideration recognized by the Group as the
acquirer in the business combination not involving enterprises under common control the Group
measures such financial liabilities at fair value through profit or loss and includes the changes in
the financial liabilities in profit or loss for the period.
11.4.1.2 Other financial liabilities
Except for financial liabilities financial guarantee contracts and loan commitments arising from
transfer of financial assets that do not meet the derecognition criteria or those arising from
continuing involvement in the transferred financial assets other financial liabilities are
subsequently measured at amortized cost with gain or loss arising from derecognition or
amortization recognized in profit or loss.If the modification or renegotiation for the contract by the Group and its counterparties does not
result in derecognition of a financial liability subsequently measured at amortized cost but the
changes in contractual cash flows the Group will recalculate the carrying amount of the financial
liability with relevant gain or loss recognized in profit or loss. The Group will determine the
carrying amount of the financial liability based on the present value of renegotiated or modified
contractual cash flows discounted at the original effective interest rate of the financial liability.For all costs or expenses arising from modification or renegotiation of the contract the Group will
adjust the modified carrying amount of the financial liability and make amortization during the
remaining term of the modified financial liability.- 38 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
11.4.1.3 Financial guarantee contracts and loan commitments
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.Subsequent to initial recognition financial guarantee contracts that are not designated as financial
liabilities at fair value through profit or loss or financial liabilities arising from transfer of
financial assets that do not meet the derecognition criteria or those arising from continuing
involvement in the transferred financial assets and loan commitments to provide a loan at a
below-market interest rate which are not designated at fair value through profit or loss are
measured at the higher of: (1) amount of loss provision; and (2) the amount initially recognized
less cumulative amortization amount determined based on the revenue standards.
11.4.2 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to
replace the original financial liability with a new financial liability with substantially different
terms is accounted for as an extinguishment of the original financial liability and the recognition
of a new financial liability.When the Group derecognizes a financial liability or a part of it it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability)
derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) in profit or loss.
11.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments issued (including refinanced) repurchased
sold and cancelled by the Group are recognized as changes in equity. Changes in fair value of
equity instruments are not recognized by the Group. Transaction costs related to equity
transactions are deducted from equity.The Group recognizes the distribution to holders of the equity instruments as distribution of
profits and dividends paid do not affect total amount of shareholders' equity.- 39 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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.- 40 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 ("FVTPL") by the Group such financial asset is measured at fair value at the date of
reclassification and the difference between the original carrying amount and the fair value is
recognized in profit or loss for the period.Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
other comprehensive income ("FVTOCI") by the Group such financial asset is measured at fair
value at the date of reclassification and the difference between the original carrying amount and
the fair value is recognized in other comprehensive income.Where a financial asset at FVTOCI is reclassified as a financial asset at amortized cost by the
Group the accumulated gains or losses previously recognized in other comprehensive income are
transferred out and the fair value at the date of reclassification is adjusted. The adjusted fair value
is determined as the new carrying amount as if the financial asset has been always measured at
amortized cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.- 41 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 gross carrying amount.Where a financial asset at FVTPL is reclassified as a financial asset at FVTOCI by the Group
such financial asset continues to be measured at fair value.Where a financial asset at FVTPL is reclassified the effective interest rate is determined on the
basis of the fair value of the financial asset at the date of reclassification.
12. Receivables
12.1 Determination and accounting methods for expected credit losses of receivables
The Group assesses the credit risk of receivables with significantly different credit risks on an
individual basis and determine the credit losses of receivables on a portfolio basis using an
impairment matrix for other receivables. The amount of increase in or reversal of allowance for
expected credit losses on receivables is included in profit or loss for the period as credit
impairment losses or gains.
12.2 Categories of portfolios for which bad debt provision is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination
The Group classifies receivables into groups A B and C based on common risk characteristics.The common credit risk characteristics adopted by the Group include: type of financial instrument
credit risk rating type of collateral initial recognition date remaining contractual term industry
of the debtor geographical location of the debtor value of the collateral to the financial asset etc.- 42 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 bad debt provision is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination - continued
The Group makes internal credit ratings on customers and determines expected loss rate of
receivables. Basis for determining ratings and the expected loss rates are as follows:
Internal credit Basis for determining portfolio Expected averagerating 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 of 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. Receivables financing
Notes receivable classified as at FVTOCI should be listed as receivables financing within one
year (including one year) from the date of acquisition. Those over one year should be listed as
other debt investments. For related accounting policies refer to Note (IV) 11 and Note (IV) 12.
14. Inventories
14.1 Categories of inventories valuation method of inventories upon delivery inventory count
system and amortization method for ow cost and short-lived consumable items and
packaging materials
14.1.1 Categories of inventories
The Group's inventories mainly include raw materials merchandise and others. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.- 43 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
14. Inventories - continued
14.1 Categories of inventories valuation method of inventories upon delivery inventory count
system and amortization method for ow cost and short-lived consumable items and
packaging materials - continued
14.1.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method and
first-in-first-out method.
14.1.3 Inventory count system
The perpetual inventory system is maintained for stock system.
14.1.4 Amortization method for low cost and short-lived consumable items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized using the
immediate write-off method.
14.2 Recognition criteria and provision method for decline in value of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value a provision for decline in value of
inventories is made.Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion the estimated costs necessary to make the sale and relevant taxes.Net realizable value is determined on the basis of clear evidence obtained after taking into
consideration the purposes of inventories being held and effect of post balance sheet events.Provision for decline in value of inventories is made based on the excess of cost of inventory over
its net realizable value on an item-by-item basis.After the provision for decline in value of inventories is made if the circumstances that
previously caused inventories to be written down below cost no longer exist so that the net
realizable value of inventories is higher than their cost the original provision for decline in value
is reversed and the reversal is included in profit or loss for the period.- 44 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
15. Long-term equity investments
15.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its
returns. Joint control is the contractually agreed sharing of control over an economic activity and
exists only when the strategic financial and operating policy decisions relating to the activity
require the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee the effect of potential voting rights of the
investee (for example warrants and convertible debts) held by the investing enterprises or other
parties that are currently exercisable or convertible shall be considered.
15.2 Determination of initial investment cost
For a long-term equity investment acquired through business combination involving enterprises
under common control share of carrying amount of owners' equity of the acquiree in the
consolidated financial statements of ultimate controlling party is recognized as initial investment
cost of long-term equity investment at the date of combination. The difference between initial
investment cost of long-term equity investment and cash paid non-cash assets transferred and
carrying amount of liabilities assumed is adjusted in capital reserve. If the balance of capital
reserve is not sufficient to absorb the difference any excess is adjusted to retained earnings. If the
consideration of the combination is satisfied by the issue of equity securities the initial
investment cost of the long-term equity investment is the share of carrying amount of owners'
equity of the acquiree in the consolidated financial statements of ultimate controlling party at the
date of combination. The aggregate face value of the shares issued is accounted for as share
capital. The difference between the initial investment cost and the aggregate face value of the
shares issued is adjusted to capital reserve. If the balance of capital reserve is not sufficient to
absorb the difference any excess is adjusted to retained earnings. Where equity interests in an
acquiree are acquired in stages through multiple transactions ultimately constituting a business
combination involving enterprises under common control the acquirer shall determine if these
transactions are considered to be a "package deal". If yes these transactions are accounted for as a
single transaction where control is obtained. If no the initial investment cost of the long-term
equity investment is the share of carrying amount of owners' equity of the acquiree in the
consolidated financial statements of ultimate controlling party at the date of combination. The
difference between the initial investment cost and the sum of carrying amount of equity
investments previously held in the acquiree and the new investment cost is adjusted to capital
reserve. If the balance of capital reserve is not sufficient to absorb the difference any excess is
adjusted to retained earnings. Other comprehensive income recognized for the previously held
equity investments by accounting treatment of equity method or non-trading equity instrument
investments designated as at FVTOCI is not subject to accounting treatment temporarily.- 45 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.2 Determination of initial investment cost - continued
For a long-term equity investment acquired through business combination not involving
enterprises under common control the investment cost of the long-term equity investment
acquired is the cost of acquisition.The expenses incurred by the acquirer in respect of auditing legal services valuation and
consultancy services and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.The long-term equity investment acquired otherwise than through a business combination is
initially measured at its cost. When the entity is able to exercise significant influence or joint
control (but not control) over an investee due to additional investment the cost of long-term
equity investments is the sum of the fair value of previously-held equity investments determined
in accordance with Accounting Standards for Business Enterprises No.22 - Financial Instruments:
Recognition and Measurement (ASBE No. 22) and the additional investment cost.
15.3 Subsequent measurement and recognition of profit or loss
15.3.1 Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the
Company's separate financial statements. A subsidiary is an investee that is controlled by the
Group.Under the cost method a long-term equity investment is measured at initial investment cost.When additional investment is made or the investment is recouped the cost of the long-term
equity investment is adjusted accordingly. Investment income is recognized in the period in
accordance with the attributable share of cash dividends or profit distributions declared by the
investee.
15.3.2 Long-term equity investments accounted for using the equity method
Except for investments in associates and joint ventures classified as held-for-sale partly or wholly
the Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the Group only has rights to the net assets of the arrangement.Under the equity method where the initial investment cost of a long-term equity investment
exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition no adjustment is made to the initial investment cost. Where the initial investment cost
is less than the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition the difference is recognized in profit or loss for the period and the cost of the long-
term equity investment is adjusted accordingly.- 46 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.3 Subsequent measurement and recognition of profit or loss - continued
15.3.2 Long-term equity investments accounted for using the equity method - continued
Under the equity method the Group recognizes its share of the net profit or loss and other
comprehensive income of the investee for the period as investment income and other
comprehensive income for the period. Meanwhile the carrying amount of long-term equity
investment is adjusted; the carrying amount of long-term equity investment is decreased in
accordance with its share of the investee's declared profit or cash dividends; other changes in
owners' equity of the investee other than net profit or loss and other comprehensive income are
correspondingly adjusted to the carrying amount of the long-term equity investment and
recognized in capital reserve. The Group recognizes its share of the investee's net profit or loss
based on the fair value of the investee's individual identifiable assets etc. at the acquisition date
after making appropriate adjustments. When the investee's accounting policies and accounting
period are inconsistent with those of the Group the Group recognizes investment income and
other comprehensive income after making appropriate adjustments to conform to the Group's
accounting policies and accounting period. However unrealized gains or losses resulting from the
Group's transactions with its associates and joint ventures which do not constitute a business are
eliminated based on the proportion attributable to the Group and then investment gains or losses
are recognized. However unrealized losses resulting from the Group's transactions with its
associates and joint ventures which represent impairment losses on the transferred assets are not
eliminated.The Group discontinues recognizing its share of net losses of the investee after the carrying
amount of the long-term equity investment together with any long-term interests that in substance
form part of its net investment in the investee are reduced to zero. In addition if the Group has
incurred obligations to assume additional losses a provision is recognized according to the
obligation expected and recorded in the investment loss for the period. Where net profits are
subsequently made by the investee the Group resumes recognizing its share of those profits only
after its share of the profits exceeds the share of losses previously not recognized.- 47 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.4 Disposal of long-term equity investments
On disposal of a long-term equity investment the difference between the proceeds actually
received and receivable and the carrying amount is recognized in profit or loss for the period. For
long-term equity investments accounted for using the equity method if the remaining interest
after disposal is still accounted for using the equity method other comprehensive income
previously recognized using the equity method is accounted for on the same basis as would have
been required if the investee had directly disposed of related assets or liabilities and transferred to
profit or loss for the period on a pro rata basis; owners' equity recognized due to other changes in
owners' equity of the investee (other than net profit or loss other comprehensive income and
profit distribution) is transferred to profit or loss for the period on a pro rata basis. For long-term
equity investments accounted for using the cost method if the remaining interest after disposal is
still accounted for using the cost method other comprehensive income previously recognized
using the equity method or in accordance with the standards for the recognition and measurement
of financial instruments before obtaining the control over the investee is accounted for on the
same basis as would have been required if the investee had directly disposed of related assets or
liabilities and transferred to profit or loss for the period on a pro rata basis; other changes in
owners' equity in the investee's net assets recognized under the equity method (other than net
profit or loss other comprehensive income and profit distribution) is transferred to profit or loss
for the period on a pro rata basis.Where the Group loses control over the investee due to disposal of part of shares and in preparing
the separate financial statements remaining shares after disposal can have joint control or
significant influence over the investee the equity method shall be adopted to adjust the remaining
shares as they are accounted for under equity method since the acquisition date. If remaining
shares after disposal cannot have joint control or significant influence over the investee they are
accounted for in accordance with the standards for recognition and measurement of financial
instruments and the difference between fair value on date of losing control and carrying amount
is recognized in profit or loss for the period. Other comprehensive income recognized using the
equity method or in accordance with the standards for the recognition and measurement of
financial instruments before losing control over the investee is accounted for on the same basis as
would have been required if the investee had directly disposed of related assets or liabilities when
the control over the investee is lost; other changes in owners' equity in the investee's net assets
recognized under the equity method (other than net profit or loss other comprehensive income
and profit distribution) is transferred to profit or loss for the period on a pro rata basis. Where
remaining shares after disposal are accounted for under equity method other comprehensive
income and other owners' equity are transferred on a pro rata basis. Where remaining shares after
disposal are accounted for in accordance with the standards for recognition and measurement of
financial instruments other comprehensive income and other owners' equity are all transferred.- 48 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.4 Disposal of long-term equity investments - continued
Where the Group loses joint control or significant influence over the investee after part disposal of
shares remaining shares after disposal are accounted for in accordance with the standards for
recognition and measurement of financial instruments and the difference between fair value at the
date of losing joint control or significant influence and carrying amount is recognized in profit or
loss for the period. Other comprehensive income previously recognized under the equity method
is accounted for on the same basis as would have been required if the investee had directly
disposed of related assets or liabilities when the equity method is not adopted and other changes
in owners' equity other than net profit or loss other comprehensive income and profit distribution
are transferred to investment income for the period when the equity method is not adopted.The Group disposes of its equity investment in subsidiaries through multiple transactions step by
step until it loses control over the subsidiaries. If these transactions belong to "package deal" all
transactions are deemed as one transaction on disposal of equity investment in subsidiaries and
the difference between the amount of disposal and carrying amount of long-term equity
investment is recognized as other comprehensive income and transferred to profit or loss for the
period when the control is lost.
16. Investment properties
Investment property is the property held by the Group to earn rentals or for capital appreciation or
both. It includes a land use right that is leased out and a building that is leased out.An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with the investment property will flow to the Group and the
subsequent expenditures can be measured reliably. Other subsequent expenditures are recognized
in profit or loss for the period in which they are incurred.The Group uses the cost model for subsequent measurement of investment property and the
investment properties are depreciated over their useful lives using the straight-line method. The
depreciation life estimated residual value rate and annual depreciation rate of each category of
investment properties are as follows:
Category Depreciation life (year) Residual value rate (%) Annual depreciation rate(%)
Land use rights 21.25-50 - 2.00-4.71
Buildings and structures 10-43.17 5.00 2.20-9.50
An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from the disposal.- 49 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
16. Investment properties - continued
When an investment property is sold transferred retired or damaged the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
17. Fixed assets and depreciation
Fixed assets are tangible assets that are held for use in the production or supply of goods or
services for rental to others or for administrative purposes and have useful lives of more than
one accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.Fixed assets are initially measured at cost. Upon being restructured into a stock company the
fixed assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it
is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the
replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss for
the period in which they are incurred.A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The depreciation life estimated
net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
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 1.90-19.00
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.- 50 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
18. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.Construction in progress is accounted for by categories of projects initiated and is transferred to a
fixed asset when it is ready for intended use. The criteria for judging the intended use shall be one
of the following:
(1) The physical construction (including installation) of fixed assets has been fully or
substantially completed;
(2) The trial production or trial operation has been carried out and the results of which
indicate that the asset is capable of normal operation or producing qualified products on a
stable basis or the results of which indicate that it is capable of normal functioning or
operation;
(3) The fixed assets and intangible assets acquired and constructed have met the design or
contractual requirements or are basically in compliance with the design or contractual
requirements.
19. Borrowing costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition construction or production of a qualifying asset is interrupted abnormally and when
the interruption is for a continuous period of more than 3 months. Capitalization is suspended
until the acquisition construction or production of the asset is resumed. Other borrowing costs are
recognized as an expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds. Where funds are borrowed under
general-purpose borrowings the Group determines the amount of interest to be capitalized on
such borrowings by applying a capitalization rate to the weighted average of the excess of
cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose
borrowings. During the capitalization period exchange differences related to a specific-purpose
borrowing denominated in foreign currency are all capitalized. Exchange differences in
connection with general-purpose borrowings are recognized in profit or loss for the period in
which they are incurred.- 51 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
20. Intangible assets
20.1 Useful life and the basis for determination estimates amortization method or review
procedures
Intangible assets include land use rights terminal operating rights and others.An intangible asset is measured initially at cost. Upon being restructured into a stock company
the intangible assets initially contributed by the state-owned shareholders are recognized based on
the valuation amounts confirmed by the state-owned assets administration department. Except for
terminal operating rights when an intangible asset with a finite useful life is available for use its
original cost is amortized over its estimated useful life. The terminal operating rights under the
output method are amortized over periods according to the ratio of the estimated minimum
guaranteed throughput to the estimated minimum guaranteed total throughput during the operation
period. When the estimated minimum guaranteed throughput cannot be measured reliably the
straight-line method will be used for amortization. An intangible asset with indefinite useful life
will not be amortized.The amortization method useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortization method Useful life (year) Residual value (%)
From the date of the land transfer it
Land use rights Straight-line method is amortized using the straight-line -
method over the land transfer period
Output method - it is amortized
over periods according to the ratio
of the estimated minimum
guaranteed throughput to the
estimated minimum guaranteed
Terminal operating 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-
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.- 52 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
20. Intangible assets - continued
20.2 Scope of R&D expenditure and method for accounting treatment
Expenditure during the research phase is recognized in profit or loss for the period in which it is
incurred.Expenditure during the development phase that meets all of the following conditions at the same
time is recognized as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognized in profit or loss for the period:
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits including the evidence of the existence of a market for the output of the
intangible asset or the intangible asset itself or if it is to be used internally the usefulness
of the intangible asset.
(4) the availability of adequate technical financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.If the expenditures cannot be distinguished between the research phase and development phase
the Group recognizes all of them in profit or loss for the year. The costs of intangible assets
generated by the internal research only include the total expenditure incurred for the period from
the time point of capitalization to the time point when the intangible assets are ready for intended
use. For the identical intangible asset the expenditures recorded as expenses before they qualify
for capitalization during the development process are not adjusted.The Group classifies the expenditures on an internal research and development project into
expenditures in the research phase and expenditures in the development phase. The scope of R&D
expenditures refer to those directly related to the R&D activities including wages salaries and
welfare expenses of personnel directly engaged in R&D activities materials directly consumed in
R&D activities depreciation expenses for instruments and equipment used in R&D activities
travel transportation and communication expenses required for research and experimental
development etc. Technical feasibility and economic viability studies are adopted as specific
criteria for classifying the research and development phases once such studies have been
evaluated and approved.- 53 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
21. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that long-term equity
investments investment properties measured at cost model fixed assets construction in progress
right-of-use assets intangible assets with a finite useful life and assets related to contract costs
may be impaired. If there is any indication that such assets may be impaired recoverable amounts
are estimated for such assets. Intangible assets with indefinite useful life and intangible assets not
yet available for use are tested for impairment annually irrespective of whether there is any
indication that the assets may be impaired.Recoverable amount is estimated on an individual basis. If it is not practical to estimate the
recoverable amount of an individual asset the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value
less costs of disposal and the present value of the future cash flows expected to be derived from
the asset.If the recoverable amount of an asset or an asset group is less than its carrying amount the deficit
is accounted for as an impairment loss and is recognized in profit or loss.Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment
testing goodwill is considered together with the related assets group(s) or portfolio of assets
group(s) i.e. goodwill is reasonably allocated to the related assets group(s) or portfolio of assets
group(s) expected to benefit from the synergies of the combination. An impairment loss is
recognised if the recoverable amount of the assets group(s) or portfolio of assets group(s)
(including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to
reduce the carrying amount of any goodwill allocated to such assets group(s) or portfolio of assets
group(s) and then to the other assets of the group pro-rata on the basis of the carrying amount of
each asset (other than goodwill) in the group.Once the impairment loss of above-mentioned assets is recognized it shall not be reversed in any
subsequent period.
22. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over
the current and subsequent periods (together of more than one year). Long-term prepaid expenses
are amortized using the straight-line method over the expected periods in which benefits are
derived.
23. Contract liabilities
Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for
consideration received or receivable from the customer. The contract assets and contract liabilities
under the same contract are presented on a net basis.- 54 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
24. Employee benefits
24.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make full
payments within 12 months after the annual reporting period during which relevant services are
provided by the employees except the post-employment benefits and termination benefits.Specifically the short-term benefits include: employee salaries bonuses allowances and subsidies
employee benefits social insurance contributions such as the medical insurance and the work
injury insurance housing funds trade union funds and employee education funds short-term paid
absence short-term profit sharing plan non-monetary welfare and other short-term benefits.Short-term employee benefits payable are recognized as liabilities with a corresponding charge to
profit or loss for the period or in the costs of relevant assets in the accounting period in which
employees provide services to the Group. Staff welfare expenses incurred by the Group are
recognized in profit or loss for the period or the costs of relevant assets based on the actually
occurred amounts when they actually occurred. Non-monetary staff welfare expenses are
measured at fair value.Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance work injury insurance and maternity insurance etc. and
payments of housing funds as well as union running costs and employee education costs provided
in accordance with relevant requirements are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities
with a corresponding charge to profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
24.2 Post-employment benefits
Post-employment benefits refer to the rewards and benefits of various forms provided by the
Group after the employees have retired or terminated the labor relationship with the enterprise for
the services rendered by the employees except the short-term benefits and the termination
benefits. The post-employment benefits consist of the pension insurance the annuity the
unemployment insurance and other post-employment benefits.Post-employment benefit plans are classified by the Group into defined contribution plans and
defined benefit plans. The post-employment benefit plan refers to the agreements the Group
entered into with the employees on the post-employment benefits or the regulations or measures
established by the Group for provisions of the post-employee benefits among which the defined
contribution plans refer to the post-employment benefit plan under which the Group shall no
longer undertake any obligations of payments after paying fixed expenses to independent funds;
the defined benefit plans refer to the post-employment benefit plans other than the defined
contribution plans. During the accounting period in which employees render services to the Group
the amounts payable calculated based on the defined contribution plans are recognized as
liabilities and included in profit or loss for the period or costs of related assets.- 55 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
24. Employee benefits - continued
24.2 Post-employment benefits - continued
For defined benefit plans the Group attributes the welfare obligations arising from the defined
benefit plans to the period in which employees provide services to the Group according to the
formula determined based on the projected cumulative benefit unit method and includes them in
profit or loss for the period or costs of related assets. Defined benefit costs are categorized as
follows:
Service cost (including current service cost past service cost as well as gains and losses on
settlements);
Net interest of net liabilities or assets of defined benefit plans (including interest income of
planned assets interest expenses of defined benefit plan liabilities and effect of asset ceiling);
and
Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.Service costs and net interest of net liabilities and net assets of defined benefit plans are
recognized in profit or loss for the period or costs of related assets. Remeasurement of the net
defined benefit liabilities (assets) (including actuarial gains and losses the return on planned
assets excluding amounts included in net interest on net defined benefit liabilities (assets) and
any changes in the effect of the asset ceiling excluding amounts included in net interest on net
defined benefit liabilities (assets)) are recognized in other comprehensive income.The deficit or surplus resulting from the present value of the defined benefit plan obligations less
the fair value of the defined benefit plan assets is recognized as a net defined benefit plan liability
or net asset.
24.3 Termination benefits
Termination benefits refer to the compensations the Group pay to the employees for terminating
the employment relationship with employees before the expiry of the employment contracts or
encouraging employees to accept voluntary redundancy. When the Group provides termination
benefits to employees employee benefit liabilities are recognized for termination benefits with a
corresponding charge to profit or loss for the period at the earlier of: (1) when the Group cannot
unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring
that involves the payment of termination benefits.
24.4 Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except for short-term benefits
post-employment benefits and termination benefits.- 56 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
24. Employee benefits - continued
24.4 Other long-term employee benefits - continued
Other long-term employee benefits that qualify as defined contribution plans are treated in
accordance with the relevant provisions of the defined contribution plans mentioned above except
that the net liability or net asset for other long-term employee benefits is recognized and measured
in accordance with the relevant provisions of the defined benefit plans. At the end of the reporting
period employee compensation costs arising from other long-term employee benefits are
recognized as three components: service cost net interest on net liability or net asset for other
long-term employee benefits and changes resulting from the remeasurement of the net liability or
net asset for other long-term employee benefits. The total net amount of these items is included in
profit or loss for the period or in the costs of related assets.The Group provides internal retirement benefits to employees accepting the internal retirement
arrangements. Internal retirement benefits refer to the payments of salaries and social security
contributions for employees who reach the retirement age regulated by the country and are
approved to quit the job voluntarily. For internal retirement benefits the internal retirement
benefits the Group is expected to pay during the period from the date when employees stop
providing services to the date of normal retirement are recognized as liabilities at the present
value and included in profit or loss for the period when relevant recognition requirements of the
internal retirement benefits are met.
25. Provisions
Provisions are recognized when the Group has a present obligation related to a contingency it is
probable that an outflow of economic benefits will be required to settle the obligation and the
amount of the obligation can be measured reliably.The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at the balance sheet date taking into account factors pertaining to a
contingency such as the risks uncertainties and time value of money. Where the effect of the time
value of money is material the amount of the provision is determined by discounting the related
future cash outflows.Where all or some of the expenditure required to settle a provision is expected to be reimbursed
by a third party the reimbursement is recognized as a separate asset only when it is virtually
certain that reimbursement will be received and the amount of reimbursement recognized does
not exceed the carrying amount of the provision.- 57 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
26. Share-based payments
A share-based payment is a transaction which the Group grants equity instruments in return for
services rendered by employees or other parties. The Group's share-based payments include
equity-settled share-based payments.Equity-settled share-based payments in exchange for services rendered by employees are
measured at fair value of the equity instruments granted to employees at the grant date. Such
amount is recognized as related costs or expenses on a straight-line basis over the vesting period
based on the best estimate of the number of equity instruments expected to vest/ as related costs or
expenses at the grant date if the equity instruments could be vested immediately with a
corresponding increase in capital reserve.
27. Preferred stock perpetual bonds and other financial instruments
The consideration received by the Group for the issuance of equity instruments is included in
shareholders' equity after deducting transaction costs. Repurchase the consideration and
transaction costs paid by the Group's equity instruments to reduce shareholders' equity.The Group classifies financial instruments or their components as financial liabilities or equity
instruments at initial recognition based on the contractual terms of the issued perpetual bonds and
their reflected economic substance combined with the definitions of financial liabilities and
equity instruments.For financial instruments such as perpetual bonds classified as equity instruments interest
expense or dividend (dividend) distributions are treated as profit distributions of the Group and
their repurchases write-offs etc. are treated as changes in equity and related transaction costs
are deducted from equity.
28. Revenue recognition
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by
type of business
The Group's revenue is mainly from port business bonded logistics business and other businesses.The Group recognizes revenue based on the transaction price allocated to the performance
obligation when the Group satisfies a performance obligation in the contract namely when the
customer obtains control over relevant goods or services. A performance obligation is a
commitment that the Group transfers a distinct goods or service to a customer in the contract.- 58 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by
type of business - continued
It is a performance obligation satisfied during a period of time and the Group recognizes revenue
during a period of time according to the progress of performance if one of the following
conditions is met: (i) the customer obtains and consumes economic benefits at the same time of
the Group's performance; (ii) the customer is able to control goods or services in progress during
the Group's performance; (iii) goods or services generated during the Group's performance have
irreplaceable utilization and the Group is entitled to collect amounts of cumulative performance
part which have been done up to now. Otherwise revenue is recognized at a point in time when
the customer obtains control over the relevant goods or services.The Group adopts output method i.e. the value of goods or services transferred to customers to
determine the appropriate progress of performance. Where the progress cannot be determined
reasonably the revenue is recognized based on the amount of cost that is expected to be
compensated based on the cost already incurred until the progress of performance is reasonably
determined.The transaction price is the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to a customer excluding amounts collected
on behalf of third parties and amounts expected to be refunded to a customer. In determining the
transaction price the Group should consider the effects of variable consideration significant
financing components in the contract non-cash consideration and consideration payable to
customers.If there are two or more of performance obligations included in the contract at the inception of
the contract the Group allocates the transaction price to each single performance obligation based
on the proportion of stand-alone selling price of goods or services promised in each stand-alone
performance obligation. However if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not the whole) performance
obligations in the contract the Group will allocate the contract discount or variable consideration
to relative one or more performance obligations. Stand-alone selling price refers to the price of a
single sale of goods or services. If the stand-alone selling price cannot be observed directly the
Group estimates the stand-alone selling price through comprehensive consideration of all relative
information that can be reasonably acquired and maximum use of observable inputs.In case of the existence of variable consideration (such as sales discount) in the contract the
Group shall determine the best estimate of variable consideration based on the expected value or
the most probably occurred amount. The transaction price including variable consideration shall
not exceed the amount of the cumulatively recognized revenue which is unlikely to be
significantly reversed 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.- 59 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by
type of business - continued
If the customer pays non-cash consideration the Group determines the transaction price based on
the fair value of the non-cash consideration. If the fair value of non-cash consideration cannot be
reasonably estimated the Group shall determine the transaction price indirectly by reference to
the stand-alone selling price of the goods or services promised to transfer to the customer.In case of the existence of a significant financing component in the contract the Group shall
determine the transaction price on the assumption that the customer has paid the amount payable
by cash when obtaining the control over the goods or services. Differences between transaction
price and contract consideration are amortized using effective interest method during the contract
life. At the inception of the contract if the period between when the Group transfers a promised
goods or service to a customer and when the customer pays for that goods or service will be one
year or less the Group would not consider the significant component in the contract.The Group assesses whether it controls each specified goods or service before that goods or
service is transferred to the customer to determine whether the Group is a principal or an agent. If
the Group controls the specified good or service before that good or service is transferred to a
customer the Group is a principal and recognizes revenue in the gross amount of consideration
received or receivable. Otherwise the Group is an agent and recognizes revenue in the amount of
any fee or commission to which it expects to be entitled. The fee or commission is the net amount
of consideration that the Group retains after paying the other party the consideration received in
exchange for the goods or services to be provided by that party or is determined in accordance
with the established commission amount or percentage etc.Where the Group receives receipts in advance from a customer for sales of goods or rendering of
services the amount is first recognized as a liability and then transferred to revenue when the
related performance obligation has been satisfied. When the Group's receipts in advance are not
required to be refunded and it is probable that the customer will waive all or part of its contractual
rights the Group recognizes the said amounts as revenue on a pro-rata basis in accordance with
the pattern of exercise of the customer's contractual rights if the Group expects to be entitled to
the amounts relating to the contractual rights waived by the customer; otherwise the Group
reverses the related balance of the said liabilities to revenue only when it is highly unlikely that
the customer will require performance of the remaining performance obligations.For port business the revenue from the handling of containers and bulk cargos is recognized over
time based on the progress of completed services and the revenue from the storage of containers
and bulk cargos is recognized on a straight-line basis over the period of storage.- 60 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by
type of business - continued
For bonded logistics business the revenue is recognized based on the progress of services
rendered where the progress of completed services is determined based on the proportion of days
on services provided to the estimated total number of service days. As at the balance sheet date
the Group has re-estimated the progress of completed bonded logistics service so that it reflects
the changes in performance status.
28.2 Similar operations under different business models which involve different revenue
recognition and measurement methods
The Group has no similar operations under different business models which involve different
revenue recognition and measurement methods.
29. Contract costs
29.1 Costs of obtaining a contract
For the incremental cost of obtaining the contract (cost that will not occur if the contract is not
obtained) that is expected to be recoverable it is recognized as an asset. If the amortization period
of such asset is less than one year it is recognized in profit or loss for the period when incurred.Other expenses incurred for obtaining the contract is included in profit or loss for the period when
incurred except for those explicitly assumed by the customer.
29.2 Costs to fulfil a contract
If the costs incurred in fulfilling a contract are not within the scope of any standards other than
Revenue Standards the Group recognizes an asset only if those costs meet all of the following
criteria: (1) the costs relate directly to a contract or to an anticipated contract that the Group can
specifically identify; (2) the costs enhance resources of the Group that will be used in satisfying
performance obligations in the future; and (3) the costs are expected to be recovered. The asset
mentioned above shall be amortized on a basis that is consistent with the revenue recognition of
the goods or services to which the asset relates and recognized in profit or loss for the period.- 61 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
29. Contract costs - continued
29.3 Impairment loss of assets related to contract costs
In determining the impairment losses of assets related to contract costs the Group first determines
the impairment losses of other assets related to contracts recognized in accordance with other
ASBE; then for assets related to contract costs if the carrying amount of the assets is higher than
the difference between: (1) the remaining consideration that the Group expects to obtain for the
transfer of the goods or services related to the assets; and (2) the estimated costs to be incurred for
the transfer of the related goods or services any excess is provided for impairment and recognized
as impairment loss of assets.After the provision for impairment of assets related to contract costs is made if the factors of
impairment in previous periods change so that the difference between the above two is higher than
the carrying amount of the assets the original provision for impairment of the assets is reversed
and recognized in profit or loss for the period provided that the carrying amount of the assets
after the reversal does not exceed the carrying amount of the assets at the date of reversal
assuming no provision for impairment was made.
30. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to
the Group at no consideration. A government grant is recognized only when the Group can
comply with the conditions attached to the grant and the Group will receive the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset it is
measured at fair value. If the fair value cannot be reliably determined it is measured at a nominal
amount. A government grant measured at a nominal amount is recognized immediately in profit
or loss for the period.
30.1 Determination basis and accounting treatment of government grant related to assets
Government grants of the Group mainly include grants for intelligent system etc. and these
government grants relate to assets as they will form long-term assets.A government grant related to an asset is recognized as deferred income and evenly amortized to
profit or loss over the useful life of the related asset. 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.- 62 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
30. Government grants - continued
30.2 Determination basis and accounting treatment of government grant related to income
Government grants of the Group mainly include grants for business development and specialized
operations etc. and these government grants relate to income as they will not form long-term
assets. The Group classifies government grants that are difficult to be distinguished as
government grants related to income aggregately.For a government grant related to income if the grant is a compensation for related expenses or
losses to be incurred in subsequent periods the grant is recognized as deferred income and
recognized in profit or loss for the period in which the related costs or losses are recognized; If the
grant is a compensation for related expenses or losses already incurred the grant is recognized
immediately in profit or loss.A government grant related to the Group's daily activities is recognized in other income or
charged against related costs based on the nature of economic activities; a government grant not
related to the Group's daily activities is recognized in non-operating income.
31. Income tax
The income tax expenses include current income tax and deferred income tax.
31.1 Current income tax
At the balance sheet date current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of
tax laws.
31.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their
tax base or between the nil carrying amount of those items that are not recognized as assets or
liabilities and their tax base that can be determined according to tax laws deferred tax assets and
liabilities are recognized using the balance sheet liability method.Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred
tax assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.However for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction which is not a business
combination that affects neither the accounting profit nor taxable profits (or deductible losses) 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.- 63 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
31. Deferred tax assets/ deferred tax liabilities - continued
31.2 Deferred tax assets and deferred tax liabilities - continued
For deductible losses and tax credits that can be carried forward deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which the deductible losses and tax credits can be utilized.Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries associates and joint ventures except where the Group is able to
control the timing of the reversal of the temporary differences and it is probable that the
temporary differences will not be reversed in the foreseeable future. Deferred tax assets arising
from deductible temporary differences associated with investments in subsidiaries associates and
joint ventures are recognized to the extent that it is probable that future taxable profits will be
available against which the deductible temporary differences can be utilized and they are expected
to be reversed in the foreseeable future.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates
applicable in the period in which the asset is realized or the liability is settled according to tax
laws.Current and deferred tax expenses or income are recognized in profit or loss for the period except
when they arise from transactions or events that are directly recognized in other comprehensive
income or shareholders' equity in which case they are recognized in other comprehensive income
or shareholders' equity and when they arise from business combinations in which case they
adjust the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the
benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it
becomes probable that sufficient taxable profits will be available.
31.3 Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously current tax assets and current tax
liabilities are offset and presented on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed deferred tax assets and deferred tax liabilities are offset and presented on a net
basis.- 64 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
32. Leases
A lease is a contract in which the lessor for a certain period of time gives the lessee the right to
use the assets to obtain a consideration.For contracts entered into the Group assesses whether the contract is or contains a lease at the
commencement date. Such contract will not be reassessed unless the terms and conditions of the
contract are subsequently changed.
32.1 The Group as lessee
32.1.1 Separating components of a lease
For a contract that contains one or more lease components or non-lease components the Group
separates each individual lease and non-lease component and allocates the contract consideration
in the relative proportion of the sum of the individual price of each lease component and the
individual price of the non-lease component.
32.1.2 Right-of-use assets
Except for short-term leases and leases of low-value assets the Group recognizes the right-of-use
assets of the leases at the commencement date. The commencement date of the lease is the date
from which the lessor provides the leased assets to make them available for use by the Group.Right-of-use assets are initially measured at cost. The cost includes:
the amount of the initial measurement of the lease liabilities.any lease payments made at or before the commencement date less any lease incentives.any initial direct costs incurred by the Group.an estimate of costs to be incurred by the Group in dismantling and removing the underlying
asset restoring the site on which it is located or restoring the underlying asset to the
condition required by the terms and conditions of the lease.Right-of-use assets are depreciated by the Group in accordance with the ASBE No.4 Fixed Assets.If the Group is reasonably certain that the lease will transfer ownership of the underlying asset to
the Group by the end of the lease term the right-of-use assets are depreciated from the
commencement date to the end of the useful life of the underlying asset. Otherwise the right-of-
use assets are depreciated from the commencement date to the earlier of the end of the useful life
of the right-of-use assets or the end of the lease term.The Group applies ASBE No. 8 Impairment of Assets to determine whether the right-of-use
assets are impaired and to account for any impairment loss identified.- 65 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.3 Lease liabilities
Except for short-term leases and leases of low-value assets the Group initially measures lease
liabilities at the present value of the outstanding lease payments at the commencement date. In
calculating the present value of the lease payments the Group uses the implicit interest rate of the
lease as the discount rate. If it is not possible to determine the implicit interest rate of the lease
the incremental borrowing rate shall be applied.The lease payments comprise the following payments by the Group for the right to use the
underlying asset during the lease term:
fixed payments (including in-substance fixed payments) less any lease incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option if the Group is reasonably certain to exercise that
option.payments for terminating the lease if the lease term reflects the Group exercising an option
to terminate the lease.amounts expected to be payable by the Group under residual value guarantees.Variable lease payments that depend on an index or a rate are initially measured using the index
or rate as at the commencement date. Variable lease payments not included in the measurement of
the lease liabilities are recognized in profit or loss or in the cost of relevant assets in the period
of those payments.After the commencement date interest expenses on the lease liabilities in each period during the
lease term is calculated by a constant periodic rate of interest and included in profit or loss or
charged to cost of related assets.After the commencement date the Group shall remeasure the lease liabilities and make
corresponding adjustments to the related right-of-use assets in the following circumstances. If the
carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the
measurement of the lease liabilities the Group shall recognize the difference in profit or loss:
where there is a change in the lease term or in the assessment of an option to purchase the
underlying asset the Group remeasures the lease liabilities on the basis of the revised lease
term and the revised discount rate;
where there is a change in the amounts expected to be payable under a residual value
guarantee or in future lease payments resulting from a change in an index or a rate used to
determine those payments the Group remeasures the lease liabilities on the basis of the
revised lease payments and the unchanged discount rate unless the change in the lease
payments results from a change in floating interest rates in which case a revised discount
rate is applied to calculate the present value.- 66 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.4 Short-term leases and leases of low-value assets
The Group elects not to recognize right-of-use assets or lease liabilities for short-term leases and
leases of low-value assets i.e. port and terminal facilities buildings machinery and equipment
furniture fixture and other equipment motor vehicles and cargo ships and others. A short-term
lease is a lease that at the commencement date has a lease term of 12 months or less and does not
contain a call option. A lease of low-value assets is a lease that the value of the underlying asset
is less than RMB50000 when it is new. For short-term leases and leases of low-value assets the
Group recognizes the lease payments in profit or loss or in the cost of related assets on a straight-
line basis over each period within the lease term.
32.1.5 Lease modifications
A lease modification should be accounted for as a separate lease if both of the following apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets.the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price
according to the circumstances of the particular contract.For a lease medication that is not accounted for as a separate lease at the effective date of the
lease modification the Group should allocate the consideration in the modified contract
determine the lease term of the modified lease and remeasure the lease liabilities based on the
present value of the changed lease payments and the revised discount rate.For lease modifications that decrease the scope of the lease or shorten the term of the lease the
Group should decrease the carrying amount of the right-of-use assets with any gain or loss
relating to the partial or full termination of the lease recognized in profit or loss. For re-
measurement of lease liabilities due to other lease modifications a corresponding adjustment is
made to the carrying amount of the right-of-use assets.- 67 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.6 Sale and leaseback transactions
The Group as seller-lessee
The Group applies the requirements of Revenue Standard to determine whether the transfer of an
asset is accounted for as a sale of that asset. If the transfer of an asset does not constitute a sale
the Group shall continue to recognize the transferred assets recognize a financial liability equal to
the transfer proceeds and accounts for such financial liability in accordance with the Accounting
Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and
Measurement. If the transfer of an asset is a sale the Group shall measure the right-of-use assets
arising from the leaseback at the proportion of the previous carrying amount of the asset that
relates to the right of use and recognize any gain or loss for rights transferred to the lessor only.
32.2 The Group as lessor
32.2.1 Separating components of a lease
For a contract that contains lease components and non-lease components the Group allocates the
contract consideration in accordance with the Revenue Standards on allocation of transaction
prices based on the respective individual prices of the lease components and the non-lease
components.
32.2.2 Classification of leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership. All other leases are classified as operating leases.
32.2.2.1 The Group as lessor under operating leases
The Group recognizes lease receipts from operating leases as rental income using a straight-line
method over the respective periods of the lease term. The Group's initial direct costs incurred in
connection with operating leases are capitalized when the costs incurred and are allocated to
profit or loss for the period over the lease term on the same basis as the recognition of rental
income.Variable lease receipts acquired by the Group in connection with operating leases that are not
included in the lease receipts are recognized in profit or loss for the period when they are actually
incurred.- 68 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
32. Leases - continued
32.2 The Group as lessor - continued
32.2.2 Classification of leases - continued
32.2.2.2 The Group as lessor under finance leases
At the commencement date the Group recognizes a finance lease receivable at the amount equal
to the net lease investment with assets under finance lease derecognized. The net lease investment
is the sum of any unguaranteed residual value and the present value of the lease receipts over the
lease term discounted at the interest rate implicit in lease.The lease receivable comprises the following payments collected by the Group from the lessee for
the transfer of the right to use the underlying assets during the lease term:
fixed payments (including in-substance fixed payments) paid by the lessee less any lease
incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option provided that it is reasonably determined that the
lessee will exercise the option.payments for terminating the lease provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
residual value of guarantee provided to the Group by the lessee a party related to the lessee
and an independent third party with the financial ability to fulfil the guarantee obligations.Variable lease receipts not included in the net lease investment are recognized in profit or loss
when they are actually incurred.Interest income for each period over the lease term is calculated and recognized by the Group at a
fixed periodic rate.
32.2.3 Subleases
As the lessor of a sublease the Group accounts for the original lease contract and the sublease
contract on a separate basis. The Group classifies the subleases based on the right-of-use assets
generating from the original lease rather than the underlying assets of the original lease.- 69 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
32. Leases - continued
32.2 The Group as lessor - continued
32.2.4 Lease modifications
The Group accounts for a modification to an operating lease as a new lease from the effective date
of the modification considering any lease advances or receivables relating to the original lease as
the lease receipts for the new lease.A lease modification should be accounted for as a separate lease if there is a modification in a
finance lease and both of the followings apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope with any appropriate adjustment to that stand-alone price.For a modification to a finance lease that is not accounted for as a separate lease the Group
accounts for the modification as follows:
If the lease would have been classified as an operating lease had the modification been
effective at the commencement date the Group should account for the lease modification as
a new lease from the effective date of the modification and measure the carrying amount of
the underlying assets at the amount equal to the net lease investment before the effective
date of the modification;
If the lease would have been classified as a finance lease had the modification been effective
at the commencement date the Group should account for it in accordance with the
provisions on contract modification and renegotiation under Accounting Standards for
Business Enterprises No. 22 - Financial Instruments: Recognition and Measurement.
32.2.5 Sale and leaseback transactions
The Group as the buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale the Group
does not recognize the transferred asset but a financial asset at an amount equal to the transfer
proceeds and accounts for such financial asset under the Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement. If the transfer of an
asset constitutes a sale the Group accounts for the purchase of the asset in accordance with other
applicable Accounting Standards for Business Enterprises and accounts for the lease of the asset.- 70 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING ESTIMATES - continued
33. Exchange of non-monetary assets
When the non-monetary assets are of commercial substance and the fair value of assets received
or the assets given up can be measured reliably the non-monetary transactions are measured at
fair value. For the asset received the fair value of the asset given up and related taxes payable are
recognized as the cost at initial recognition; For the asset given up at derecognition the
difference between the fair value and the carrying amount is recognized in profit or loss for the
current period. When there is clear evidence indicating that the fair value of the received asset is
more reliable for the asset received the fair value of the asset received and related taxes payable
are recognized as the cost at initial recognition; For the asset given up at derecognition the
difference between the fair value of the asset received and the carrying amount of the asset given
up is recognized in profit or loss for the current period.When the non-monetary transactions fail to meet criteria to be measured at fair value the
transactions are measured at carrying amounts. For the asset received the carrying amount of the
asset given up and relevant taxes payable are recognized as the cost of at initial recognition. For
the asset given up at derecognition no profit or loss is recognized.
34. Safety production cost
According to the Administrative Measures for the Collection and Utilization of Enterprise Work
Safety Funds (Cai Zi [2022] No. 136) jointly issued by the Ministry of Finance and the
Emergency Department on 13 December 2022 safety production cost set aside by the Group is
directly included in the cost of relevant products or recognized in profit or loss for the period and
transferred to special reserve simultaneously. When safety production cost set aside is utilized if
the costs incurred can be categorized as expenditure the costs incurred should be charged against
the special reserve. If the costs set aside are used to build up fixed assets the costs should be
charged to construction in progress and reclassified to fixed assets when the safety projects are
ready for intended use. Meantime expenditures in building up fixed assets are directly charged
against the special reserve with the accumulated depreciation recognized at the same amount.Depreciation will not be made in the future period on such fixed assets.(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies and accounting estimates as set out in Note (IV) the
Group is required to make judgments estimates and assumptions about the carrying amounts of
items in the financial statements that cannot be measured accurately due to the internal
uncertainty of the operating activities. These judgments estimates and assumptions are based on
historical experience of the Group's management as well as other factors that are considered to be
relevant. Actual results may differ from these estimates.- 71 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONSAND UNCERTAINTIES INACCOUNTING ESTIMATES - continued
The Group regularly reviews the judgments estimates and assumptions on a going concern basis.Changes in accounting estimates which only affect the current period should be recognized in the
current period; changes which not only affect the current but the future periods should be
recognized in the current and future periods. At the balance sheet date key assumptions and
uncertainties in critical judgments and accounting estimates that are likely to lead to significant
adjustments to the carrying amounts of assets and liabilities in the future are as follows:
Goodwill impairment
For the purpose of impairment testing the present value of the expected future cash flows of the
assets group or portfolio including goodwill shall be calculated and such expected future cash
flows shall be estimated. Meantime a rate shall be determined that should reflect the time value
of money on the current market and the specific interest risks.Recognition of deferred income tax
The Group calculates and makes provision for deferred tax liabilities according to the profit
distribution plans of subsidiaries associates and joint ventures and relevant provisions of tax law.For retained earnings of the investee which are not expected to be distributed since the profits
will be used for the daily operation and future development of the investee no deferred tax
liabilities are recognized. If the profits to be actually distributed in future years are more or less
than those expected corresponding deferred tax liabilities will be recognized or reversed in profit
or loss for the period at the earlier of the date on which the profit distribution plan is changed and
the date on which the profit distribution is declared.Deferred tax assets are recognized based on the deductible temporary differences and the
corresponding tax rate to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
future years are more or less than that expected corresponding deferred tax assets will be
recognized or reversed in profit or loss for the period in which they are actually incurred.Estimated useful lives and residual value of fixed assets and intangible assets
The Group assesses the estimated useful lives and residual value of fixed assets and intangible
assets. Such estimate is made by reference to the historical experience of actual useful lives and
residual value of fixed assets and intangible assets of similar nature and function and is subject to
significant changes due to technical innovation and fierce industry competition. Where the
estimated useful lives and residual value of fixed assets and intangible assets are less than the
previous estimates the Group will increase the depreciation and amortization or write off or
eliminate the technically obsolete fixed assets or intangible assets.- 72 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VI) CHANGES IN SIGNIFICANTACCOUNTING POLICIES ANDACCOUNTING
ESTIMATES
1. Changes in significant accounting policies
1.1 Interpretation No. 16 of the Accounting Standards for Business Enterprises
The Interpretation No. 16 of the Accounting Standards for Business Enterprises (the
"Interpretation No. 16") was issued by the Ministry of Finance on 30 November 2022 which
clarified the accounting treatment concerning the exemption of initial recognition of deferred
income tax relating to assets and liabilities arising from a single transaction.Interpretation No. 16 revised the coverage of exemption of the initial recognition of deferred
income tax in the Accounting Standards for Business Enterprises No. 18 – Income Tax and
specified that the relevant provisions on the exemption of initial recognition of deferred tax
liabilities and deferred tax assets are not applicable to a single transaction (not a business
combination) that affects neither the accounting profit nor taxable income (or deductible losses) at
the time of transaction and where the assets and liabilities initially recognized generate equal
taxable temporary differences and deductible temporary differences. The Interpretation became
effective from 1 January 2023 and could be early applied. The Group started to apply the
Interpretation from 1 January 2023 adopted the retrospective adjustment method for accounting
treatment and restated the financial statements for the comparative year. The impacts are listed as
follows:
Item 1/1/2022 Adjustment 1/1/2022
Assets:
Deferred tax assets 398145710.84 56499013.55 454644724.39
Liabilities:
Deferred tax liabilities 4550417470.61 2001049.09 4552418519.70
Shareholders' equity:
Unappropriated profit 14205879106.49 21052360.17 14226931466.66
Minority interests 71234238229.35 33445604.29 71267683833.64
Item 31/12/2022 Adjustment 31/12/2022
Assets:
Deferred tax assets 372927261.40 61571559.55 434498820.95
Liabilities:
Deferred tax liabilities 4853271307.86 1748527.47 4855019835.33
Shareholders' equity:
Other comprehensive income -691536248.44 1982628.58 -689553619.86
Unappropriated profit 16679688347.09 22299954.05 16701988301.14
Minority interests 73994641893.21 35540449.45 74030182342.66
- 73 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
1. Changes in significant accounting policies - continued
1.1 Interpretation No. 16 of the Accounting Standards for Business Enterprises - continued
Item 2022 Adjustment 2022
Profit and loss:
Income tax expenses 1113179679.35 -220002.60 1112959676.75
Net profit 8231683297.67 220002.60 8231903300.27
Profit or loss attributable to minority
shareholders 4894237074.85 -1027591.28 4893209483.57
Other comprehensive income
attributable to shareholders of the 206102739.65 1982628.58 208085368.23
Company net of tax
Other comprehensive income
attributable to minority interests 1417424133.35 3122436.44 1420546569.79
net of tax
(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 unloading business and part of modern 6%
("VAT") (Note 3) 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 1%-7%
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 1-12 per square meter
Environmental protection tax Amount of pollution equivalents of the
(Note 5) taxable air pollutants converted based on the
RMB 1.8 per pollution
quantity of pollutions discharged equivalent
- 74 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated
by local tax laws. Among them the Company is subject to an enterprise income tax rate
of 25% the subsidiaries set up in Hong Kong are subject to an enterprise income tax rate
of 8.25% and 16.5% the majority of subsidiaries set up in China are subject to an
enterprise income tax rate of 25% and certain others are subject to the preferential tax
rate for small and micro enterprises of 20% certain domestic subsidiaries are subject to
the preferential tax rate for high-tech enterprises or encouraged industrial enterprises in
the region of 15% and the other overseas subsidiaries are subject to enterprise income
tax rates between 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
are actual owners holding more than 25% interest in the subsidiaries in China they will
enjoy a preferential tax rate of 5%.Note 3: The VAT amount is the balance of the output tax less the deductible input tax and the
output tax is calculated in accordance with the sales income and the corresponding tax
rate stipulated in the relevant tax laws of China.Note 4: The social contribution tax is the tax paid by TCP Participaes S.A. (hereinafter
referred to as "TCP") an overseas subsidiary of the Group to the local government.Note 5: The environmental protection tax is the tax paid by Zhanjiang Port (Group) Co. Ltd.(hereinafter referred to as "Zhanjiang Port") a domestic subsidiary of the Group to the
government.
2. Tax preference
Certain subsidiaries of the Group in China are recognized as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. The
Group's subsidiaries outside of China may be subject to enterprise income tax preference in
accordance with relevant local tax policies.- 75 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
2. Tax preference - continued
From 1 January 2023 to 31 December 2027 the urban land use tax for certain domestic
subsidiaries of the Group on the land for bulk commodity storage facilities is levied at the reduced
rate of 50% of the tax amount applicable to the grade of the land.Certain subsidiaries of the Group in China are small and micro enterprises and are subject to a
preferential tax rate of 20%. In accordance with the Announcement on Relevant Tax and Fee
Policies for Further Supporting the Development of Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 of the Ministry of Finance and the
State Administration of Taxation in 2023) for small and micro enterprises the taxable income is
calculated at a reduced rate of 25% and the enterprise income tax is paid at a rate of 20% from 1
January 2023 and 31 December 2027.As approved by Shekou Taxation Sub-bureau of Shenzhen Tax Bureau State Administration of
Taxation on 12 October 2017 certain subsidiaries of the Group are exempted from VAT for
auxiliary logistics services (warehousing services excluding delivery services) provided to
overseas enterprises in 2023.(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item 31/12/2023 31/12/2022
Cash 974692.93 726960.10
Including: RMB 2767.60 2767.60
USD 225565.37 44853.90
HKD 25259.89 26167.88
BRL 8625.45 6536.63
Others 712474.62 646634.09
Bank deposits (Note 1) 13934385410.92 11219776605.37
Including: RMB 8215456953.08 8846763966.57
USD 3189067302.34 1045085866.19
EUR 655188558.31 745066787.31
BRL 283264276.30 379062088.91
HKD 1211715308.91 141668372.90
AUD 36381245.06 4708056.85
FCFA 295232843.14 -
Others 48078923.78 57421466.64
Other cash and bank balances (Note 2) 54207918.46 553726619.61
Including: LKR 39287209.66 -
RMB 14920544.77 340778819.19
HKD 164.03 212571712.02
USD - 376088.40
Funds deposited in Finance Company (Note 3) 2090078155.93 1841698554.32
Total 16079646178.24 13615928739.40
Including: Total amount of funds deposited overseas 4143910318.92 4012922744.09
- 76 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
1. Cash and bank balances - continued
Note 1: The interest receivable and funds frozen for ETC card business which are included in the
balance of bank deposits at the end of the year amounted to RMB 13563157.74 and
RMB 12000.00 respectively.Note 2: The funds frozen for litigation the balance of the securities account the restricted
banker's letter of guarantee and the restricted performance bond which are included in
the balance of other cash and bank balances at the end of the year amounted to RMB
1826085.98 RMB 7684462.32 RMB 4214480.40 RMB 40482889.76.
Note 3: The funds deposited in Finance Company included the interest receivable amounting to
RMB 933933.26.
2. Held-for-trading financial assets
Item 31/12/2023 31/12/2022
Financial assets classified as at FVTPL 4568806108.84 2998781599.63
Including: Investments in debt instruments 450209.48 -
Investments in equity investments - 135742.11
Structured deposits 4568355899.36 2998645857.52
Total 4568806108.84 2998781599.63
3. Notes receivable
(1) Category of notes receivable
Category 31/12/2023 31/12/2022
Bank acceptance 315150195.09 395000.00
Commercial acceptance 10000000.00 36000000.00
Total 325150195.09 36395000.00
Note: In 2023 no provision for bad debts of notes receivable is assessed on an individual basis
and the acceptor of bank acceptance and commercial acceptance for which provision for
bad debts is assessed on a portfolio basis has high credit ratings with no significant credit
risks therefore no provision for bad debts is made.
(2) As at 31 December 2023 the Group has no notes receivable pledged.
(3) As at 31 December 2023 the Group has no endorsed or discounted and not yet matured
notes receivable at the balance sheet date.
(4) The Group has no notes receivable written off in 2023.
- 77 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 31/12/2023 31/12/2022
Accounts receivable 1194923829.34 1370162956.88
Les: provision for credit loss 91022363.09 94013267.44
Total 1103901466.25 1276149689.44
(2) Aging analysis of accounts receivable
Aging 31/12/2023 31/12/2022
Within 1 year 1112613215.99 1296002000.92
1-2 years 23735983.67 11157744.62
2-3 years 3139299.76 10897749.26
More than 3 years 55435329.92 52105462.08
Total 1194923829.34 1370162956.88
(3) Disclosure of accounts receivable by category
Credit Expected 31/12/2023 31/12/2022
rating credit loss Gross carrying Bad debt Carrying Gross carrying Bad debt Carryingrate (%) amount provision amount amount provision amount
A 0.00-0.10 622585699.82 428822.70 622156877.12 757893845.42 254506.65 757639338.77
B 0.10-0.30 428914672.70 552173.90 428362498.80 437329923.88 579435.66 436750488.22
C 0.30-50.00 62942396.67 9638519.30 53303877.37 91915183.34 12581359.16 79333824.18
D 50.00-100.00 80481060.15 80402847.19 78212.96 83024004.24 80597965.97 2426038.27
Total -- 1194923829.34 91022363.09 1103901466.25 1370162956.88 94013267.44 1276149689.44
(4) Accounts receivable disclosed by method of bad debt provision:
31 December 2023 31 December 2022
Category Gross carrying amount Bad debt provision Gross carrying amount Bad debt provision
Amount Proportion Proportion Carrying amount Proportion Proportion Carrying amount(%) Amount (%) Amount (%) Amount (%)
Bad debt provision assessed on an
individual basis 80481060.15 6.74 80402847.19 99.90 78212.96 83024004.24 6.06 80597965.97 97.08 2426038.27
Bad debt provision assessed on a
portfolio basis 1114442769.19 93.26 10619515.90 0.95 1103823253.29 1287138952.64 93.94 13415301.47 1.04 1273723651.17
Total 1194923829.34 100.00 91022363.09 —— 1103901466.25 1370162956.88 100.00 94013267.44 —— 1276149689.44
Bad debt provision assessed on an individual basis:
31 December 2023
Name Gross carrying Bad debt Reason for provision
amount provision Proportion (%)
Entity 1 24908308.44 24908308.44 100.00 Low probability of recovery
Entity 2 15228816.61 15150603.67 99.49 Low probability of recovery
Entity 3 7693327.33 7693327.33 100.00 Low probability of recovery
Entity 4 6169500.45 6169500.45 100.00 Low probability of recovery
Entity 5 5923278.20 5923278.20 100.00 Low probability of recovery
Others 20557829.12 20557829.10 100.00 Low probability of recovery
Total 80481060.15 80402847.19 —— ——
- 78 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(4) Accounts receivable disclosed by method of bad debt provision: - continued
Bad debt provision assessed on a portfolio basis:
Name 31 December 2023Accounts receivable Bad debt provision Proportion (%)
A 622585699.82 428822.70 0.07
B 428914672.70 552173.90 0.13
C 62942396.67 9638519.30 15.31
Total 1114442769.19 10619515.90 ——
(5) Measurement of expected credit loss at an amount equivalent to the lifetime expected
credit loss
Lifetime expected Lifetime expected
Item credit loss (not credit loss (credit- Total
credit-impaired) impaired)
At 1 January 2023 13415301.47 80597965.97 94013267.44
Gross carrying amount of accounts receivable
at 1 January 2023
- Transfer to credit-impaired accounts receivable - - -
- Reversal of accounts receivable that are not
credit-impaired - - -
Provision for the year 3361539.37 17614537.42 20976076.79
Reversal for the year -5995730.86 -5694956.74 -11690687.60
Effect of changes in the scope of consolidation - -5662552.89 -5662552.89
Transfer-out due to derecognition of financial
assets (including direct write-down) - -8087700.00 -8087700.00
Other changes -161594.08 1635553.43 1473959.35
At 31 December 2023 10619515.90 80402847.19 91022363.09
(6) Details of bad debt provision
Changes for the year
Effect of
Category 31/12/2022 Provision Recovery or changes in the Charge-off or Other 31/12/2023reversal scope of write-off changes
consolidation
Bad debt provision
assessed on an 80597965.97 17614537.42 -5694956.74 -5662552.89 -8087700.00 1635553.43 80402847.19
individual basis
Bad debt provision
assessed on a 13415301.47 3361539.37 -5995730.86 - - -161594.08 10619515.90
portfolio basis
Total 94013267.44 20976076.79 -11690687.60 -5662552.89 -8087700.00 1473959.35 91022363.09
- 79 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(7) Accounts receivable written off in the year
Item Nature Amount Reason for write-off Procedures
Arising from
performed related partytransactions or not
Entity A Service fees 8087700.00 Confirmed asirrecoverable Yes No
Total — — 8087700.00 —— —— ——
(8) The top five balances of accounts receivable at the end of the year classified by debtor
Name of Relationship Proportion of the amount to the Bad debt provision at
entity with the Group 31/12/2023 Aging total accounts receivable (%) 31/12/2023
Client 1 Non-related party 259396393.45 Within 1 year 1-2 years 21.71 30325.21
Client 2 Non-related party 68403654.05 Within 1 year 5.72 54946.81
Client 3 Non-related party 43464824.09 Within 1 year 1-2 years 3.64 7510.99
Client 4 Non-related party 29747677.62 Within 1 year 2.49 7909.61
Client 5 Non-related party 29355671.89 Within 1 year 2.46 -
Total 430368221.10 36.02 100692.62
5. Receivables financing
(1) Classification of receivables financing
Item 31/12/2023 31/12/2022
Bank acceptance measured at fair value 2001669.46 163766913.10
(2) As at 31 December 2023 the Group has no pledged receivables financing.
(3) At the end of the year the Company's receivables financing that have been endorsed or
discounted and have not yet matured at the balance sheet date are as follows:
Item Amount derecognized
Amount not
at the end of the year derecognized at theend of the year
Bank acceptance measured at fair value 16291826.66 -
Total 16291826.66 -
(4) In 2023 no provision for bad debt of receivables financing is assessed on an individual
basis and the acceptor of bank acceptance for which provision for bad debts is assessed on
a portfolio basis has high credit ratings with no significant credit risks therefore no
provision for credit loss is made.- 80 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Prepayments
(1) Aging analysis of prepayments
31/12/202331/12/2022
Aging Grosscarrying Proportion Impairment
Gross
carrying Proportion Impairment
amount (%) provision amount (%) provision
Within 1 year (inclusive) 36798888.01 97.70 - 61917391.43 97.31 -
1-2 years (inclusive) 615427.75 1.63 - 1589158.49 2.50 -
2-3 years (inclusive) 129361.04 0.34 - - - -
More than 3 years 120875.50 0.33 - 120875.50 0.19 -
Total 37664552.30 100.00 - 63627425.42 100.00 -
(2) As at 31 December 2023 the Group has no significant prepayments aged more than one
year.
(3) The top five balances of prepayments at the end of the year classified by entities
Proportion of the
Name of entity Relationship with 31/12/2023 Aging closing balance to Reason for not beingthe Company the total settled
prepayments (%)
Entity 1 Non-related party 14057775.95 Within 1 year 37.32 Unsettled prepayment forpremium
Entity 2 Non-related party 6591641.10 Within 1 year 1-2 Unsettled prepayment foryears and 2-3 years 17.50 communication charges
Entity 3 Non-related party 2298659.10 Within 1 year 6.10 Unsettled prepayment forpremium
Entity 4 Non-related party 743362.83 Within 1 year 1.97 Unsettled prepayment forprocurement
Entity 5 Non-related party 641646.87 Within 1 year 1.70 Unsettled prepayment forprocurement
Total 24333085.85 64.59
7. Other receivables
7.1 Presentation of other receivables
Item 31/12/2023 31/12/2022
Dividends receivable 343386866.06 416040485.62
Other receivables 596628127.95 532801608.68
Total 940014994.01 948842094.30
- 81 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.2 Dividends receivable
(1) Presentation of dividends receivable
Name of investee 31/12/2023 31/12/2022
China Nanshan Development (Group) Incorporation
("Nanshan Group") 203577000.00 240591000.00
Zhanjiang Merchants Port City Investment Co. Ltd.("Merchants Port City") 38809044.77 41847044.77
Dalian Port Logistics Network Co. Ltd. 30605256.76 -
Yingkou Gangxin Technology Co. Ltd. 23881213.75 -
COSCO Logistics (Zhanjiang) Co. Ltd. 13449001.16 18449001.16
China Ocean Shipping Agency (Shenzhen) Co. Ltd. 11232000.00 -
Tin-can Island Container Terminal Ltd 21960680.22 65121449.40
Qingdao Qianwan United Container Terminal Co. Ltd. - 50000000.00
Others 216400.00 448447.23
Sub-total 343730596.66 416456942.56
Less: Bad debt provision 343730.60 416456.94
Carrying amount 343386866.06 416040485.62
(2) Significant dividends receivable aged more than 1 year
Whether bad debts
Name of Reason for not being have been incurred
investee 31/12/2023 31/12/2022 Aging recovered and the basis for
determination
Undergoing relevant
Nanshan Group 129549000.00 111042000.00 1-2 years formalities expected tobe recovered by the end No
of 2024
(3) Changes in provision for credit loss of dividends receivable
Stage 1 Stage 2 Stage 3
Item 12-month expected Lifetime expected Lifetime expectedcredit loss (not credit loss (credit- Totalcredit loss credit-impaired) impaired)
At 1 January 2023 416456.94 - - 416456.94
Balance at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year -72726.34 - - -72726.34
Transfer-out due to
derecognition of financial
assets (including direct - - - -
write-down)
Other changes - - - -
At 31 December 2023 343730.60 - - 343730.60
- 82 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.2 Dividends receivable - continued
(4) Details of bad debt provision
Changes for the year
Category 31/12/2022 Provision Recovery or Charge-off or Other 31/12/2023reversal write-off changes
Bad debt provision assessed
on an individual basis - - - - - -
Bad debt provision assessed
on a portfolio basis 416456.94 - -72726.34 - - 343730.60
Total 416456.94 - -72726.34 - - 343730.60
7.3 Other receivables
(1) Aging analysis of other receivables
31/12/202331/12/2022
Aging Other Bad debt Proportion Other Bad debt Proportion
receivables provision (%) receivables provision (%)
Within 1 year 261380065.65 3386613.18 1.30 487428214.83 229150234.71 47.01
1-2 years 268634561.16 189669720.48 70.61 192100283.58 4690780.38 2.44
2-3 years 189029374.18 4675136.05 2.47 12444128.52 9740862.33 78.28
More than 3 years 834322127.22 759006530.55 90.97 844098122.57 759687263.40 90.00
Total 1553366128.21 956738000.26 1536070749.50 1003269140.82
(2) Disclosure of other receivables by nature
Item 31/12/2023 31/12/2022
Operation compensation (Note 1) 857551782.45 859677826.43
Advance payments 264603548.43 295592304.09
Land compensation (Note 2) 89630000.00 89630000.00
Guarantees and deposits 24853374.42 26402747.81
Special subsidy 24800000.00 31716257.00
Others 291927422.91 233051614.17
Sub-total 1553366128.21 1536070749.50
Less: Bad debt provision 956738000.26 1003269140.82
Total 596628127.95 532801608.68
Note 1: It represents the operation compensation receivable by a subsidiary of the Company
from the holding company of its minority shareholder in accordance with the agreement.As at 31 December 2023 a bad debt provision has been made for the accumulated
outstanding compensation amounting to RMB 857551782.45.Note 2: On 9 October 2021 Zhanjiang Port a subsidiary of the Company entered into the
Agreement on Recovery of State-owned Land Use Rights with the local government.Pursuant to the Agreement Zhanjiang Port shall return the land of approximately 195.68
mu located in Zhanjiang Comprehensive Bonded Zone on the east of Shugang Avenue
which is amounting to RMB 89630000.00. The above-mentioned land has been
returned before 31 December 2021. As at 31 December 2023 the above-mentioned land
compensation of RMB 89630000.00 has not been recovered yet.- 83 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(3) Provision for credit loss of other receivables
31/12/202331/12/2022
Credit rating Expected credit 12-month
Lifetime Lifetime 12-month Lifetime Lifetime
loss rate (%) expected credit expected credit expected credit Total expected credit expected credit expected credit Total
loss loss (not credit- loss (credit-impaired) impaired) loss
loss (not credit- loss (credit-
impaired) impaired)
A 0.00-0.10 596631116.95 - - 596631116.95 532760873.61 - - 532760873.61
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 956735011.26 956735011.26 - - 1003309875.89 1003309875.89
Gross carrying amount —— 596631116.95 - 956735011.26 1553366128.21 532760873.61 - 1003309875.89 1536070749.50
Bad debt provision —— 2989.00 - 956735011.26 956738000.26 24451.35 - 1003244689.47 1003269140.82
Carrying amount —— 596628127.95 - - 596628127.95 532736422.26 - 65186.42 532801608.68
Significant other receivables for which bad debt provision is assessed on an individual basis (credit rating of D)
Name 31/12/2023 Bad debt provision ECL rate (%) Reason for provision
Entity 1 857551782.45 857551782.45 100.00 Expected to be unrecoverable (Note)
Entity 2 64841250.09 64841250.09 100.00 Expected to be unrecoverable
Entity 3 14000000.00 14000000.00 100.00 Expected to be unrecoverable
Others 20341978.72 20341978.72 100.00 Expected to be unrecoverable
Total 956735011.26 956735011.26 —— ——
Note: Refer to Note (VIII) 7.3(2).- 84 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(4) Provision reversal and write-off of credit loss of other 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)
At 1 January 2023 24451.35 - 1003244689.47 1003269140.82
Balance of other receivables
at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 6000.00 - -6000.00 -
Provision for the year 36129.03 - 3459687.18 3495816.21
Reversal for the year -27462.35 - -47267828.40 -47295290.75
Effect of changes in the scope of
consolidation -36129.03 - -545545.45 -581674.48
Charge-off for the year - - - -
Write-off for the year - - -73074.00 -73074.00
Other changes - - -2076917.54 -2076917.54
At 31 December 2023 2989.00 - 956735011.26 956738000.26
(5) Details of bad debt provision
Changes for the year 31/12/2023
Effect of
Category 01/01/2023 Provision Recovery or changes in Charge-off Otherreversal the scope of or write-off changes
consolidation
Bad debt provision
assessed on an 1003244689.47 3459687.18 -47273828.40 -545545.45 -73074.00 -2076917.54 956735011.26
individual basis
Bad debt provision
assessed on a 24451.35 36129.03 -21462.35 -36129.03 - - 2989.00
portfolio basis
Total 1003269140.82 3495816.21 -47295290.75 -581674.48 -73074.00 -2076917.54 956738000.26
Among which the bad debt provision recovered or reversed for the period that is significant in
amount is listed as below:
Basis to determine the
Name Amount recovered original proportion ofor reversed Reason for retrieve Recovered through bad debt provision and
its reasonableness
Entity 4 47169811.32 Improvement in debtor's Based on prior years'operations Cash financial position
Total 47169811.32
- 85 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(6) Write-off of other receivables in the year
Arising from
Item Nature Amount Reason for write-off Procedures related partyperformed transactions or
not
Entity 5 Rents receivable 73074.00 The counterparty was unable to make Write-off uponpayments approval No
Total — — 73074.00 —— —— ——
(7) The top five balances of other receivables at the end of the year classified by debtor
Closing
Name of Relationship with Proportion to balance of
entity the Group Nature 31/12/2023 Aging total otherreceivables (%) provision forcredit loss
Entity 1 Non-related party Operationcompensation 857551782.45
Within 1 year more
than 3 years 55.21 857551782.45
Entity 2 Non-related party Advancepayments 122674255.48
Within 1 year 1-2
years 2-3 years 7.90 -
Entity 3 Non-related party Landcompensation 89630000.00 2-3 years 5.77 -
Within 1 year 1-2
Entity 4 Non-related party Advancepayments 64841250.09 years 2-3 years 4.17 64841250.09more than 3 years
Entity 5 Non-related party Advancepayments 59698841.66 Within 1 year 3.84 -
Total —— —— 1194396129.68 —— 76.89 922393032.54
8. Inventories
(1) Category of inventories
31/12/202331/12/2022
Item Gross carrying Provision for Provision for
amount decline in value
Carrying Gross carrying Carrying
of inventories amount amount
decline in value
of inventories amount
Raw materials 217097512.98 1234628.38 215862884.60 196425573.04 1326130.64 195099442.40
Finished goods 2520205.91 - 2520205.91 17248970.37 - 17248970.37
Others 515102.36 - 515102.36 12774408.71 - 12774408.71
Total 220132821.25 1234628.38 218898192.87 226448952.12 1326130.64 225122821.48
(2) Provision for decline in value of inventories
Increase Decrease Effect of
translation of
Category 1/1/2023 financialProvision Others Reversal or 31/12/2023charge-off Others statementsdenominated in
foreign currencies
Raw materials 1326130.64 - - 99456.13 - 7953.87 1234628.38
- 86 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Inventories - continued
(2) Provision for decline in value of inventories - continued
Provision for decline in value of inventories is made on an item-by-item basis and no provision
for decline in value of inventories is made on a portfolio basis. Provision for decline in value of
inventories is reversed in the current year due to the rebound in value of inventories.
(3) As at 31 December 2023 the Group has no capitalized borrowing cost in the balance of
inventories.
9. Non-current assets due within one year
(1) Presentation of non-current assets due within one year
Item 31/12/2023 31/12/2022
Long-term receivables due within one year 17468849.83 903128422.35
Less: Bad debt provision 17468.85 903128.42
Carrying amount 17451380.98 902225293.93
(2) Provision for bad debts
Stage 1 Stage 2 Stage 3
Item 12-month expected Lifetime expected Lifetime expected Total
credit loss credit loss (not credit loss (credit-credit-impaired) impaired)
At 1 January 2023 903128.42 - - 903128.42
Gross carrying amount of long-term
receivables at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 6200.00 - - 6200.00
Reversal for the year -891859.57 - - -891859.57
Transfer-out due to
derecognition of financial assets - - - -
(including direct write-down)
Other changes - - - -
At 31 December 2023 17468.85 - - 17468.85
(3) Details of bad debt provision
Changes for the year
Category 31/12/2022 Provision Recovery or Charge-off or Other 31/12/2023reversal write-off changes
Bad debt provision assessed
on a portfolio basis 903128.42 6200.00 -891859.57 - - 17468.85
Total 903128.42 6200.00 -891859.57 - - 17468.85
- 87 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Other current assets
(1) Category of other current assets
Item 31/12/2023 31/12/2022
Input tax to be deducted and certified 115121766.13 70627183.33
Prepaid taxes 71771659.09 98329205.73
Others 2780075.65 16946751.47
Total 189673500.87 185903140.53
11. Long-term receivables
(1) Details of long-term receivables
31/12/2023 31/12/2022 Range of discount
Item Gross carrying Bad debt Carrying Gross carrying Bad debt Carrying rate at the end of
amount provision amount amount provision amount year
Advances to shareholders (Note 1) 1167470819.35 1167470.82 1166303348.53 3864736673.31 3864736.67 3860871936.64 3.65%-8.50%
Guarantees for finance leases 10695876.01 10695.88 10685180.13 10659515.88 10659.52 10648856.36 0-5.37%
Land compensation receivable (Note 2) 2691932000.00 - 2691932000.00 2692032000.00 - 2692032000.00 -
Others 4996969.31 - 4996969.31 - - - -
Total 3875095664.67 1178166.70 3873917497.97 6567428189.19 3875396.19 6563552793.00 -
Less: Long-term receivables
due within 1 year 17468849.83 17468.85 17451380.98 903128422.35 903128.42 902225293.93 -
Long-term receivables due after 1 year 3857626814.84 1160697.85 3856466116.99 5664299766.84 2972267.77 5661327499.07 -
Note 1: It mainly represents the aggregate principal and interest receivable from Port of
Newcastle and Terminal Link SAS equivalent to RMB 921402438.00 and
211768361.35 respectively.
On 14 June 2018 China Merchants Port Holdings Company ("CM Port") a subsidiary
of the Company provided a long-term loan to Port of Newcastle which matures in 2023
and has been extended to 31 December 2034 as stipulated in an agreement entered into
during the year. The loan carries interest at a rate of weighted average interest rate on
debt as determined by local authority of Port of Newcastle plus 0.5%.On 31 May 2023 CM Port a subsidiary of the Company provided a long-term loan to
Terminal Link SAS for making additional capital injection to Saigang project and
charged interest to Terminal Link SAS at an interest rate of 6.15%.Note 2: On 5 November 2019 Shantou CM Port Group Co. Ltd. ("Shantou Port") entered into
the Contract for the Acquisition of State-Owned Land Use Rights in Shantou with
Shantou Land Reserve Center. Pursuant to the contract the land and attached buildings
of approximately 370.96 mu located in Zhuchi Deepwater Port on the south of
Zhongshan East Road of Shantou should be returned to Shantou Land Reserve Center by
Shantou Port which is amounting to RMB1558032000.00. Among them 183.63 mu
of land and attached buildings have been transferred in 2019 and the remaining 187.33
mu of land and attached buildings have been transferred in 2020. As at 31 December
2023 the land compensation totalling RMB1158032000.00 has not yet been recovered.
- 88 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(1) Details of long-term receivables - continued
Note 2: - continued
On 21 August 2020 Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Land Reserve Center of Shantou Haojiang
District. Pursuant to the contract the land and attached buildings of approximately
152.34 mu located in Yutianwen Queshi Haojiang District Shantou should be returned
to Land Reserve Center of Shantou Haojiang District by Shantou Port which is
amounting to RMB250000000.00. The transfer of above-mentioned land and attached
buildings was completed before 31 December 2020. As at 31 December 2023 the land
compensation totalling RMB200000000.00 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 RMB1344000000.00 and the remaining 328.78 mu of land and attached
buildings have not been transferred. As at 31 December 2023 the land compensation
totalling RMB 1333900000.00 has not yet been recovered.
(2) Long-term receivables disclosed by method of bad debt provision
31 December 2023 31 December 2022
Category Gross carrying amount Bad debt provision Carrying Gross carrying amount Bad debt provision
Amount Proportion(%) Amount
Proportion amount Amount Proportion Proportion Carrying amount(%) (%) Amount (%)
Bad debt provision assessed
on a portfolio basis 3875095664.67 100.00 1178166.70 0.03 3873917497.97 6567428189.19 100.00 3875396.19 0.06 6563552793.00
Total 3875095664.67 100.00 1178166.70 —— 3873917497.97 6567428189.19 100.00 3875396.19 — — 6563552793.00
Bad debt provision assessed on a portfolio basis
Name 31 December 2023Accounts receivable Bad debt provision Proportion (%)
A 3875095664.67 1178166.70 0.03
Total 3875095664.67 1178166.70 ——
- 89 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(3) Provision for credit loss of long-term receivables
Stage 1 Stage 2 Stage 3
Item 12-month expected Lifetime expected Lifetime expected
credit loss credit loss (not credit loss (credit-
Total
credit-impaired) impaired)
At 1 January 2023 3875396.19 - - 3875396.19
Gross carrying amount of
long-term receivables
at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 921438.82 - - 921438.82
Reversal for the year -3618668.31 - - -3618668.31
Charge-off for the year - - - -
Write-off for the year - - - -
Other changes - - - -
At 31 December 2023 1178166.70 - 1178166.70
(4) Details of bad debt provision
Changes for the year
Effect of
Category 1/1/2023 Provision Recovery or Charge-off or changes in the 31/12/2023reversal write-off scope of
consolidation
Advances to shareholders 3864736.67 921402.46 -3618668.31 - - 1167470.82
Guarantees for finance
leases 10659.52 36.36 - - - 10695.88
Land compensation
receivable - - - - - -
Others - - - - - -
Total 3875396.19 921438.82 -3618668.31 - - 1178166.70
(5) There are no long-term receivables written off during the year.
- 90 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments
(1) Details of long-term equity investments
Changes for the year
Reconciliation Effect of Closing
Investees Accounting Investmentmethod 31/12/2022 Increase Decrease income under of other Other equity
Cash dividends Provision translation of balance of
comprehensive movements or profits Others for financial statements
31/12/2023 provision for
equity method income declared impairment denominated in impairmentforeign currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. Equity method 2787204745.37 - - 186208262.73 -847649041.64 - -123177188.28 - - 43254636.78 2045841414.96 -
Port of Newcastle Equity method 2048681775.65 - - -10864327.20 -22300558.83 - - - - 59506810.29 2075023699.91 -
Others Equity method 4880906534.70 5720923.74 -33913627.22 221260745.53 -9322791.00 -1228997.17 -239356160.34 - - 13061592.11 4837128220.35 -
Sub-total 9716793055.72 5720923.74 -33913627.22 396604681.06 -879272391.47 -1228997.17 -362533348.62 - - 115823039.18 8957993335.22 -
II. Associates
Shanghai International Port (Group)
Co. Ltd. (hereinafter referred to Equity method 34171898201.17 - - 3700844097.27 -15345010.77 269871649.40 -914383798.30 - - - 37212885138.77 -
as "Shanghai Port Group")
Nanshan Group Equity method 6377197726.21 - - 214805574.66 43279577.18 757245.35 -74028000.00 - - -2767082.88 6559245040.52 -
Terminal Link SAS Equity method 6395609168.37 - - 221059137.39 110006179.63 - -381826231.04 - - 108192659.85 6453040914.20 -
Liaoning Port Co. Ltd. ("Liaoning Port")
Note Equity method 4021162878.74 - - 151571456.52 1605319.83 2186919.86 -47236402.20 - - -5132381.49 4124157791.26 359989686.74（ ）
Shenzhen China Merchants Qianhai
Industrial Development Co. Ltd. Equity method 7403186521.01 - - 42538797.17 - - - - - - 7445725318.18 -
Ningbo Zhoushan Port Company Limited
("Ningbo Zhoushan") Equity method 17974630545.05 - - 1049986813.85 20609205.32 -23196655.58 -390875794.33 - - - 18631154114.31 -
Others Equity method 6303815822.78 892560547.98 -5123348.92 201597028.04 -15914070.05 -191087.11 -128730841.44 - - 33902072.53 7281916123.81 2344389.02
Sub-total 82647500863.33 892560547.98 -5123348.92 5582402904.90 144241201.14 249428071.92 -1937081067.31 - - 134195268.01 87708124441.05 362334075.76
Total 92364293919.05 898281471.72 -39036976.14 5979007585.96 -735031190.33 248199074.75 -2299614415.93 - - 250018307.19 96666117776.27 362334075.76
Note: The provision for the impairment of Liaoning Port is made in previous years. No evidence of impairment was found this year and no
impairment test was conducted.- 91 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments - continued
(2) Impairment testing of significant long-term equity investments
The recoverable amount is determined at the present value of expected future cash flows
Item Carrying amount Recoverable Projection Key parameters for
Basis to determine the
amount period projection period parameters for projection Key parameters for steady period
Basis to determine the key
period parameters for steady period
The discount rate is a pre-tax
Terminal Link discount rate that reflects the
SAS(note) 6453040914.20 7453973943.83 5 years
Pre-tax discount rate
7.8%~12.2% specific risks of the
Perpetual growth rate Forward inflation rate published by
underlying asset group or 1.559%~5.010% BNP Paribas
combination of asset groups
Note: The Terminal Link SAS Asset Group consists of five asset groups which are tested for impairment during the year with no impairment
identified.- 92 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Investments in other equity instruments
(1) Details of investments in other equity instruments
Changes for the year
Gains Losses Accumulated Accumulated Reasons for
included in included in Effect of Dividendincome gains included in losses included
designation as at
Item 1/1/2023 other other changes in the 31/12/2023 other in other fair value throughAddition Reduction comprehensi comprehen scope of recognized for comprehensive comprehensive other
ve income for sive income consolidation the year income income comprehensive
the year for the year income
China Ocean Shipping Agency It is a non-trading
Shenzhen Co. Ltd. 144301178.28 - - 3387985.97 - - 147689164.25 20056500.00 134179164.25 - equity instrumentinvestment
It is a non-trading
Others 27644096.74 - - 33084.28 -215602.37 -17689094.74 9772483.91 - 3873283.91 -3128300.00 equity instrument
investment
Total 171945275.02 - - 3421070.25 -215602.37 -17689094.74 157461648.16 20056500.00 138052448.16 -3128300.00 ——
(2) There are no other equity instruments derecognized for the year.
Item Accumulated gains transferred to Accumulated losses transferred toretained earnings due to derecognition retained earnings due to derecognition Reason for derecognition
Others - - Changes in the scope of consolidation
Total - - — —
- 93 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Other non-current financial assets
Item 31/12/2023 31/12/2022
Financial assets at FVTPL 877576442.83 1745740896.41
Including: Investments in equity instruments 877576442.83 1745740896.41
Including: Antong Holdings Co. Ltd.("Antong Holdings") (Note) - 950321309.06
Qingdao Port International Co. Ltd. 850222729.23 767553775.66
Others 27353713.60 27865811.69
Note: As at 31 December 2023 the Company and Zhanjiang Zhongli Ocean Shipping Tally Co.Ltd. a subsidiary of the Company together hold 6.83% equity interest in Antong Holdings
and has appointed one director to Antong Holdings. Therefore the Company has
significant influence over Antong Holdings and has changed its equity investment in
Antong Holdings from other non-current financial assets to long-term equity investments
in an associate.
15. Investment properties
(1) Investment properties measured at cost
Item Land use rights Buildings andstructures Total
I. Cost
1. At 1 January 2023 128269825.38 6177602852.51 6305872677.89
2. Increase for the year 8388170.37 13843232.32 22231402.69
(1) Purchases - 1002852.62 1002852.62
(2) Transfer from fixed assets - 12840379.70 12840379.70
(3) Transfer from intangible assets 8388170.37 - 8388170.37
3. Decrease for the year - - -
4. At 31 December 2023 136657995.75 6191446084.83 6328104080.58
II. Accumulated depreciation
and amortization
1. At 1 January 2023 43054991.58 1139127566.75 1182182558.33
2. Increase for the year 4514324.10 183032229.36 187546553.46
(1) Provision for the year 2571200.74 180261875.48 182833076.22
(2) Transfer from fixed assets - 2770353.88 2770353.88
(3) Transfer from intangible assets 1943123.36 - 1943123.36
3. Decrease for the year - - -
4. At 31 December 2023 47569315.68 1322159796.11 1369729111.79
III. Impairment provision
1. At 1 January 2023 - - -
2. Increase for the year - - -
3. Decrease for the year - - -
4. At 31 December 2023 - - -
IV. Carrying amount
1. At 31 December 2023 89088680.07 4869286288.72 4958374968.79
2. At 1 January 2023 85214833.80 5038475285.76 5123690119.56
- 94 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Investment properties - continued
(2) Investment properties without ownership certificates
Item Carrying amount at Carrying amount at Reasons for not obtaining Expected time of31/12/2023 31/12/2022 certificate of title completion
Buildings structures Some buildings and structures
and land use rights 24363424.74 24008665.10 have not yet obtained
The certificate of title is
certificates of land use rights underway
16. Fixed assets
16.1 Summary of fixed assets
Item 31/12/2023 31/12/2022
Fixed assets 28986501937.59 32033317707.66
Disposal of fixed assets 36388.76 8375.84
Total 28986538326.35 32033326083.50
16.2 Fixed assets
(1) Details of fixed assets
Machinery and
Item Port and terminal Buildings and equipment Motor vehicles andfacilities structures furniture fixture cargo ships Total
and other equipment
I. Cost —— —— —— —— ——
1. At 1 January 2023 33376255522.14 2027195029.06 17467174796.88 2314581094.83 55185206442.91
2. Increase for the year 355653533.35 5819641.52 946224073.20 15977020.14 1323674268.21
(1) Purchase 37782655.58 31964.06 322325677.27 13660825.82 373801122.73
(2) Transfer from development expenditure 6341635.07 - 8723850.63 - 15065485.70
(3) Transfer from construction in progress 311529242.70 1453075.86 344378153.65 2316194.32 659676666.53
(4) Transfer from right-of-use assets - - 270796391.65 - 270796391.65
(5) Transfer from other accounts - 4334601.60 - - 4334601.60
3. Decrease for the year 2763230873.66 261672874.02 1842920457.17 60681086.42 4928505291.27
(1) Disposal or retirement 42219921.65 16064482.96 139255106.92 52104672.51 249644184.04
(2) Transfer to investment properties - 12840379.70 - - 12840379.70
(3) Effect of changes in the scope of consolidation 2720840274.13 232768011.36 1701179778.57 8576413.91 4663364477.97
(4) Transfer to right-of-use assets 170677.88 - 2485571.68 - 2656249.56
4. Adjustments to the amount carried forward -1058728.12 - 184445.13 83718.00 -790564.99
5. Reclassification -57793950.52 51434642.27 6359308.25 - -
6. Effect of translation of financial statements
denominated in foreign currencies 227485569.31 2918280.50 164288140.60 13423975.49 408115965.90
7. At 31 December 2023 31137311072.50 1825694719.33 16741310306.89 2283384722.04 51987700820.76
II. Accumulated depreciation —— —— —— —— ——
1. At 1 January 2023 10720998321.19 635722974.00 10636302077.50 1095290493.80 23088313866.49
2. Increase for the year 963017607.23 78532518.38 930468443.58 108868177.01 2080886746.20
(1) Provision 963017607.23 74197916.78 837465030.34 108868177.01 1983548731.36
(2) Transfer from right-of-use assets - - 93003413.24 - 93003413.24
(3) Transfer from other accounts - 4334601.60 - - 4334601.60
3. Decrease for the year 1131042660.07 90575216.73 1243641341.44 55932196.77 2521191415.01
(1) Disposal or retirement 31267071.50 14971013.85 121150414.20 49154025.33 216542524.88
(2) Transfer to investment properties - 2770353.88 - - 2770353.88
(3) Effect of changes in the scope of consolidation 1099775588.57 72833849.00 1122490927.24 6778171.44 2301878536.25
4. Reclassification -1509396.69 625422.16 883974.53 - -
5. Effect of translation of financial statements
denominated in foreign currencies 46017171.79 713896.63 88553012.49 4401121.50 139685202.41
6. At 31 December 2023 10597481043.45 625019594.44 10412566166.66 1152627595.54 22787694400.09
III. Impairment provision —— —— —— —— ——
1. At 1 January 2023 57546986.63 5985164.85 42717.28 - 63574868.76
2. Increase for the year 138917159.59 3429362.62 7577097.23 - 149923619.44
3. Disposal or retirement for the year - - - - -
4. Effect of translation of financial statements
denominated in foreign currencies - - 5994.88 - 5994.88
5. At 31 December 2023 196464146.22 9414527.47 7625809.39 - 213504483.08
IV. Carrying amount —— —— —— —— ——
1. At 31 December 2023 20343365882.83 1191260597.42 6321118330.84 1130757126.50 28986501937.59
2. At 1 January 2023 22597710214.32 1385486890.21 6830830002.10 1219290601.03 32033317707.66
- 95 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.2 Fixed assets - continued
(2) The Group has no fixed assets that are temporarily idle as at 31 December 2023.
(3) Fixed assets leased out under operating leases
Item Carrying amount at Carrying amount at31/12/2023 31/12/2022
Buildings and structures 190979949.85 196480507.61
Port and terminal facilities 35709105.32 33260157.31
Machinery and equipment furniture fixture and other equipment 5012091.76 7920761.45
Total 231701146.93 237661426.37
(4) Fixed assets without ownership certificates
Item Carrying amount at Carrying amount at31/12/2023 31/12/2022 Remark
Buildings structures This is mainly due to the fact that certain buildings
port and terminal 1539024375.12 1786308720.95 and structures have not yet obtained the land use
facilities rights of the corresponding land and the approvalprocedures have not yet been completed.
(5) Details of fixed assets depreciated but still in use and temporarily idle at the end of the
year and fixed assets disposed and retired in the year:
Item Amount Remark
Cost of fixed assets fully depreciated but still in use
at the end of the year 4947824713.22
Cost of fixed assets temporarily idle at the end of the year -
Fixed assets disposed and retired in the year: — — ——
Including: Cost of fixed assets disposed and retired in the year 249644184.04
Net book value of fixed assets disposed and retired in the year 33101659.16
Loss on disposal or retirement of fixed assets in the year 18876795.60
(6) The details of the Group's fixed assets with restricted ownership as at 31 December 2023
are set out in Note (VIII) 64.
(7) Impairment testing of fixed assets
The recoverable amount is determined at the present value of expected future cash flows
Carrying Recoverable Amount of Projection Key parameters Key Basis to determine theItem amount amount impairment period for projection parameters for key parameters forperiod steady period steady period
Zhoushan RoRo Asset Perpetual China's forward inflation
Group (Note) 397078829.12 208048600.00 189030229.12 10 years
Pre-tax discount
rate 12.01% growth rate rate published by the2.20% World Bank
Total 397078829.12 208048600.00 189030229.12 —— —— —— ——
- 96 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.2 Fixed assets - continued
(7) Impairment testing of fixed assets - continued
Note: Zhoushan RoRo Asset Group include fixed assets and intangible assets of which fixed
assets are impaired at the amount of RMB 147557081.15 and intangible assets are
impaired at the amount of RMB 41473147.97.
16.3 Disposal of fixed assets
Item 31/12/2023 31/12/2022
Machinery and equipment furniture fixture
and other equipment 36388.76 8375.84
Total 36388.76 8375.84
17. Construction in progress
(1) Presentation of construction in progress
Item 31/12/2023 31/12/2022
Construction in progress 2907014186.24 2405872478.61
Materials for construction of fixed assets 2803095.22 7971929.03
Total 2909817281.46 2413844407.64
(2) Details of construction in progress
31/12/202331/12/2022
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Port and terminal
facilities 2380800758.33 - 2380800758.33 1991321268.14 - 1991321268.14
Infrastructure 252638193.22 - 252638193.22 201444537.67 - 201444537.67
Berths and yards 178174354.90 - 178174354.90 18728577.14 - 18728577.14
Cargo ships under
construction 1726548.68 - 1726548.68 - - -
Others 93674331.11 - 93674331.11 194378095.66 - 194378095.66
Total 2907014186.24 - 2907014186.24 2405872478.61 - 2405872478.61
- 97 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(3) The top ten balances of construction in progress
Effect of
translation of Proportion of
Other financial accumulated Amount of Including:
Interest
Item Budget amount 31/12/2022 Increase for Transfer to decreases for statements 31/12/2023 construction Construction accumulated Capitalized
capitalizatio Capital
the year fixed assets the year denominated investment in progress (%) capitalized interest for
n rate for source
in foreign budget (%) interest the year
the current
year (%)
currencies
Reconstruction project of HIPG
container oil terminal and tank area 2817485265.02 817365084.37 - - - 13860209.69 831225294.06 57.68 57.68 942888.05 - -
Own funds
and loans
Phase I project for the stuffing and
destuffing service area of Baoman Port 683007100.00 269045354.01 227860991.66 - - - 496906345.67 72.75 72.75 29908415.82 10355373.62 3.50 Own funds
Area Zhanjiang Port and loans
General cargo terminal project at
Donghai Island Port Area of 905348400.00 448877835.04 67384.80 - - - 448945219.84 49.59 49.59 44364372.49 - - Own funds
Zhanjiang Port and loans
Phase I expansion project for the
container terminal at Baoman Port Area 2342775800.00 191463684.57 37101454.78 - - - 228565139.35 9.76 9.76 1011370.60 57750.00 3.30 Own funds
Zhanjiang Port and loans
TCP tire-type container crane project 211491137.08 16222603.92 138123291.50 6430507.98 - 6438252.61 154353640.05 76.02 76.02 - - - Own funds
Subsequent construction work in progress at
HIPG terminal 84992400.00 28006814.86 56051165.83 16985386.70 3212066.78 657829.52 64518356.73 99.67 99.67 - - - Own funds
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82400000.00 60576339.80 1674220.80 - - - 62250560.60 75.55 75.55 - - - Own funds
Facilities and Liquid Bulk Berth
Installation project of bucket-wheel stacker
reclaimer Zhanjiang Port 74800000.00 51551526.93 837359.25 - - - 52388886.18 70.04 70.04 2671994.44 837359.25 3.50
Own funds
and loans
AMPLIACAO PLATAFORMAS REEFER 71524388.49 - 53555672.30 6045103.81 - 1479878.70 48990447.19 76.95 76.95 - - - Own funds
Dachanwan phase II project 918521317.23 24872917.72 21319643.76 - - - 46192561.48 5.03 5.03 - - - Own funds
Total 8192345807.82 1907982161.22 536591184.68 29460998.49 3212066.78 22436170.52 2434336451.15 —— —— 78899041.40 11250482.87 ——
- 98 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(4) Materials for construction of fixed assets
31/12/202331/12/2022
Item Grosscarrying Provision for Carrying
Gross Provision for Carrying
amount impairment amount
carrying
amount impairment amount
Materials for construction
of fixed assets 2803095.22 - 2803095.22 7971929.03 - 7971929.03
(5) Impairment testing of construction in progress
The recoverable amount is determined at the present value of expected future cash flows
Key Basis to
Item Carrying Recoverable Amount of Projection parameters for
Key determine the
amount amount impairment period projection parameters for
period steady period
key parameters
for steady period
Consult the expected
HIPG Asset Group 9116161496.49 51365680683.52 - 5 years Pre-tax discount Perpetualrate 7.55% growth rate 7% growth rate of theindustry
Total 9116161496.49 51365680683.52 -
18. Right-of-use assets
（1） Details of right-of-use assets
Machinery and
Port and equipment Motor
Item terminal Buildings and furniture Land use rights vehicles cargo
facilities structures
Total
fixture and ships and
other equipment others
I. Cost —— —— —— —— —— ——
1. At 1 January 2023 7414725804.49 174746285.16 361404132.03 2833468093.15 15456422.12 10799800736.95
2. Increase for the year 126996462.16 47184328.34 5908348.40 314033487.98 5119357.99 499241984.87
(1) Purchase 126825784.28 47184328.34 3422776.72 314033487.98 5119357.99 496585735.31
(2) Others 170677.88 - 2485571.68 - - 2656249.56
3. Decrease for the year 83575652.80 14851420.78 277492044.42 - 8251408.84 384170526.84
(1) Termination of lease 83575652.80 13723966.87 6695652.77 - 8251408.84 112246681.28
(2) Decrease due to change in the
scope of consolidation - 1127453.91 - - - 1127453.91
(3) Transfer to fixed assets - - 270796391.65 - - 270796391.65
4. Effect of translation of financial
statements denominated in foreign 104207338.95 2294309.58 594918.95 49298269.33 - 156394836.81
currencies
5. At 31 December 2023 7562353952.80 209373502.30 90415354.96 3196799850.46 12324371.27 11071267031.79
II. Accumulated depreciation —— —— —— —— —— ——
1. At 1 January 2023 940705350.30 59749857.79 119454049.67 326945093.98 10304162.88 1457158514.62
2. Increase for the year 262536189.49 24038515.68 20649140.40 46180031.37 4099083.51 357502960.45
(1) Provision 262536189.49 24038515.68 20649140.40 46180031.37 4099083.51 357502960.45
3. Decrease for the year 80201819.61 14365794.00 99372627.07 - 8251408.84 202191649.52
(1) Termination of lease 80201819.61 13538700.80 6369213.83 - 8251408.84 108361143.08
(2) Transfer to fixed assets - - 93003413.24 - - 93003413.24
(3) Decrease due to change in the
scope of consolidation - 827093.20 - - - 827093.20
4. Effect of translation of financial
statements denominated in foreign 10472990.85 495286.98 558342.85 5602274.34 - 17128895.02
currencies
5. At 31 December 2023 1133512711.03 69917866.45 41288905.85 378727399.69 6151837.55 1629598720.57
III. Impairment provision —— —— —— —— —— ——
1. At 1 January 2023 - - - - - -
2. Increase for the year - - - - - -
3. Decrease for the year - - - - - -
4. At 31 December 2023 - - - - - -
IV. Carrying amount —— —— —— —— —— ——
1. At 31 December 2023 6428841241.77 139455635.85 49126449.11 2818072450.77 6172533.72 9441668311.22
2. At 1 January 2023 6474020454.19 114996427.37 241950082.36 2506522999.17 5152259.24 9342642222.33
- 99 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets
(1) Details of intangible assets
Item Land use rights Terminalmanagement rights Others Total
I. Cost — — —— —— ——
1. At 1 January 2023 15314517408.67 9033916504.04 1500585297.68 25849019210.39
2. Increase for the year 4829976.87 70899565.34 210116533.73 285846075.94
(1) Purchase 4707118.86 70899565.34 204248227.46 279854911.66
(2) Transfer from R&D expenditure - - 279255.32 279255.32
(3) Other increase 122858.01 - 5589050.95 5711908.96
3. Decrease for the year 1391040555.28 - 97786230.03 1488826785.31
(1) Disposal 117561406.55 - 12263934.48 129825341.03
(2) Effect of changes in the scope of
consolidation 1242052238.36 - 85144042.52 1327196280.88
(3) Transfer to investment properties 8388170.37 - - 8388170.37
(4) Other decrease 23038740.00 - 378253.03 23416993.03
4. Effect of translation of financial
statements denominated in foreign 3238376.56 614328132.15 55732509.00 673299017.71
currencies
5. At 31 December 2023 13931545206.82 9719144201.53 1668648110.38 25319337518.73
II. Accumulated amortization —— —— —— ——
1. At 1 January 2023 4096452545.66 1897700710.79 562263716.23 6556416972.68
2. Increase for the year 337512145.19 265684203.80 83683325.73 686879674.72
(1) Provision 337512145.19 265684203.80 83683325.73 686879674.72
(2) Other increase - - - -
3. Decrease for the year 136784782.90 - 70286984.40 207071767.30
(1) Disposal 24240728.18 - 12642187.51 36882915.69
(2) Transfer to investment properties 1943123.36 - - 1943123.36
(3) Effect of changes in the scope of
consolidation 110600931.36 - 57644796.89 168245728.25
(4) Other decrease - - - -
4. Effect of translation of financial
statements denominated in foreign 1454778.05 131353162.92 20232242.87 153040183.84
currencies
5. At 31 December 2023 4298634686.00 2294738077.51 595892300.43 7189265063.94
III. Impairment provision —— —— —— ——
1. At 1 January 2023 15537122.10 - - 15537122.10
2. Increase for the year 28662259.14 - 12810888.83 41473147.97
3. Decrease for the year - - - -
4. At 31 December 2023 44199381.24 - 12810888.83 57010270.07
IV. Carrying amount —— —— —— ——
1. At 31 December 2023 9588711139.58 7424406124.02 1059944921.12 18073062184.72
2. At 1 January 2023 11202527740.91 7136215793.25 938321581.45 19277065115.61
(2) Land use rights without ownership certificates as at 31 December 2023:
Item Carrying amount Carrying amountat 31/12/2023 at 31/12/2022
Land use rights (Note) 2374139495.63 2511195386.58
- 100 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets - continued
(2) Land use rights without ownership certificates as at 31 December 2023: - continued
Note: At 31 December 2023 the land use rights without ownership certificates mainly represent
the land use rights for berth and storage yard within Chiwan Port area obtained by the
Group from Nanshan Group with an area of 691828.56 m2 and Dachanwan Port area
Phase II land use rights obtained by ASJ the costs of which are RMB 1179949191.44
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.ASJ is negotiating with relevant government departments for handling the ownership
certificates of Dachanwan Port area Phase II land use rights obtained by it.
(3) Impairment testing of intangible assets
Refer to Note (VIII) 16.2 (7) for details.
20. Goodwill
(1) Details of goodwill
Effect of translation
of financial
Investee Sources 31/12/2022 Increase Decrease statements 31/12/2023
denominated in
foreign currencies
TCP Acquisition of equity 2716399522.38 - - 270072549.76 2986472072.14
Mega Shekou Container
Terminals Limited ("Mega SCT") Acquisition of equity 1815509322.42 - - - 1815509322.42
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
Ningbo Daxie Container Terminal
Co. Ltd. (formerly known as Ningbo Consolidation of associate
Daxie China Merchants International into subsidiary 188497194.41 - 188497194.41 - -
Terminals Co. Ltd.) ("Ningbo Daxie")
Others Acquisition of equity 288255850.88 - - - 288255850.88
Sub-total — — 7382089935.42 - 188497194.41 270072549.76 7463665290.77
Provision for impairment of goodwill — — 970663044.33 - - - 970663044.33
Total — — 6411426891.09 - 188497194.41 270072549.76 6493002246.44
- 101 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(2) Provision for impairment of goodwill
Effect of
translation of
Investee 31/12/2022 Provision Decrease financialstatements 31/12/2023
denominated in
foreign currencies
Zhanjiang Port 418345307.68 - - - 418345307.68
Shantou Port 552317736.65 - - - 552317736.65
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
Shantou Port independently the manner in which they manage their
Yes
Zhanjiang Port production and operating activities (primarily by
Yes
geographic region) and the unified decision-making on Yes
Shenzhen Mawan Project use or disposal of assets. Yes
Others Yes
When testing the goodwill for impairment the Group compares the carrying amount of related
asset groups and portfolio of asset groups (including goodwill) with the recoverable amount. If the
recoverable amount is less than the carrying amount the difference is included in profit or loss for
the period. The Group determines the recoverable amount of the asset groups and portfolio of
asset groups that generate goodwill at fair value less cost of disposal or at present value of
expected future cash flows. The fair value is determined using market approach. The present
value of cash flows is estimated based on the forecast of cash flows for 5 years to 25 years
detailed forecast period and subsequent forecast period. The estimated future cash flows for the
detailed forecast period are based on the business plan established by the management; the
expected future cash flows for the subsequent forecast period are determined in conjunction with
the level of the final year of the detailed forecast period combined with the Group's business
plans industry trends and inflation rates. The growth rate adopted will not exceed the long-term
average growth rate of the country where the asset groups and portfolio of asset groups are
located. The key assumptions used by the Group in estimating the present value of future cash
flows include growth rate and discount rate etc. The pre-tax discount rate and the growth rate for
subsequent forecast period adopted in 2023 are 10.97%-21.99% and 2.20%-3.02% respectively.The parameters of key assumptions determined by the Group's management are in line with the
Group's historical experience or external source of information.- 102 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(4) Specific method for determination of recoverable amount
The recoverable amount is determined at the present value of expected future cash flows
Item Projection period Key parameters for projection Basis to determine the key parameters Key parameters for steady Basis to determine the key parameters for steadyperiod for projection period period period
1. Pre-tax discount rate: 12.23% 1. The discount rate is a pre-tax discount 1. Pre-tax discount rate: 12.23% 1. The discount rate is a pre-tax discount rate that
2. Average revenue growth rate for rate that reflects the specific risks of the 2. Average revenue growth rate reflects the specific risks of the underlying asset
Mega SCT 5 years projection period: 3.35% underlying asset group or combination for steady period: 2.20% group or combination of asset groups.
3. Average profit margin for of asset groups. 3. Average profit margin for 2. Average revenue growth rate for steady period:
projection period: 37.58% 2. Average revenue growth rate for steady period: 42.89% China's forward inflation rate published by the
1. Pre-tax discount rate: 21.99% projection period and average profit World Bank (TCP refers to Brazil's forward inflation
2. Average revenue growth rate for margin for projection period: Taking
1. Pre-tax discount rate: 21.99% rate published by the World Bank)
TCP 25 years projection period: 5.36% into account comprehensive factors such
2. Average revenue growth rate
for steady period: 3.02% 3. Average profit margin for steady period: Taking
3. Average profit margin for as each company's business operations into account comprehensive factors such as each
projection period: 53.33% performance key financial indicators
3. Average profit margin for
steady period: 54.81% company's business operations performance keyand market environment financial indicators and market environment
- 103 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Long-term prepaid expenses
Presentation of long-term prepaid expenses:
Effect of
Item 31/12/2022 changes in Increase for Amortization Other
Reason for
the scope of the year in the year decreases 31/12/2023 other
consolidation decreases
Tonggu channel widening project
(Note 1) 455446696.75 - - 14449031.76 - 440997664.99 ——
West public channel widening Reclassify to
project at West port area (Note 2) 249437402.87 - - 9919028.64 1538430.04 237979944.19 dredgingproject
Dredging project 69760419.37 - 26871419.28 17342403.61 - 79289435.04 ——
Relocation project of Nanhai Rescue
Bureau 37554111.50 - - 1107368.40 - 36446743.10
——
Expenditures for the improvement of Transfer to
leased fixed assets 20631173.37 - 3920837.53 2374618.58 82477.87 22094914.45 inventoryaccount
Others 153527101.04 -8905237.72 80141950.88 47779010.68 - 176984803.52 ——
Total 986356904.90 -8905237.72 110934207.69 92971461.67 1620907.91 993793505.29 ——
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's
subsidiary has included the expenses on deepening the channel in the item of "long-term
prepaid expenses" and amortized such expenses over the expected useful lives of the
two widening projects of 35 and 40 years using straight-line method since the
completion of each project in 2008 and 2019 respectively.Note 2: This represents the Group's actual expenses on Shenzhen West Port Area Public Channel
Widening Project of which the widening of 240-270M in the first section was
completed on 1 June 2019 and the widening of 240-270M in the second and third
sections was completed on 5 November 2020. According to relevant resolutions of
Shenzhen Municipal Government the enterprise and government shall bear 50% and
50% of the expenses incurred for the project respectively. The Company's subsidiary has
included the expenses on deepening the channel in the item of "long-term prepaid
expenses" and amortized such expenses over the expected useful life of 40 years using
straight-line method since the completion of each section of the channel widening
project.- 104 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax
(1) Deferred tax assets before offsetting
31/12/2023 31/12/2022 (Restated)
Item Deductible Deductibletemporary Deferred tax temporary Deferred tax
differences assets differences assets
Lease liabilities 812240581.51 218145932.73 582736512.28 164262934.19
Unrealized profit 749254178.80 183009204.87 756772558.79 184729651.97
Terminal operating right 714547999.18 214364399.78 702633317.13 210789995.14
Depreciation of fixed assets 162352087.79 40588021.95 154724225.49 35753675.92
Provision for credit loss 151277238.51 32071347.97 190727520.03 35544695.31
Accrued and unpaid wages 126623677.19 27883418.55 161026788.29 35802355.38
Provisions 85590059.41 29100620.20 35365156.43 12024153.19
Deductible losses 43785085.09 10946271.43 182211924.34 40193891.36
Deferred income 39203663.56 9101072.49 36723054.56 8709144.22
Amortization of computer software 7345031.20 1836257.80 9291532.77 2322883.19
Provision for impairment of assets 6698523.93 1555485.91 5507073.16 1376768.29
Organization costs 1028867.64 257216.91 3498150.00 874537.50
Others 70987022.41 18570226.51 57124137.75 15595505.07
Total 2970934016.22 787429477.10 2878341951.02 747980190.73
(2) Deferred tax liabilities before offsetting
31/12/2023 31/12/2022 (Restated)
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Withholding dividend income tax 41551214196.81 2840377397.22 37565601815.13 2568624605.88
Lease business 1017854192.39 282003933.26 783000219.10 224483346.07
Terminal operating right 307617857.01 92285357.10 302488503.92 90746551.18
Fair value adjustment of assets acquired
from business combination 4880293882.18 1292552086.64 7755954464.86 1762190010.27
Depreciation of fixed assets 975166842.96 272103476.86 1119997714.31 280579814.18
Changes in fair value of other non-current
financial assets 408104042.76 99604068.18 330012225.76 82503056.44
Changes in fair value of investments in
other equity instruments 134179164.24 33544791.03 130791178.28 32697794.57
Valuation of held-for-trading financial
assets and liabilities 2161643.84 540410.96 - -
Others 1045132765.59 118992583.19 1169095183.52 126676026.52
Total 50321724587.78 5032004104.44 49156941304.88 5168501205.11
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Offset amount of Balance of deferred Offset amount of Balance of deferred
deferred tax assets tax assets or deferred tax assets tax assets or
Item and liabilities at the liabilities after and liabilities at the liabilities after
end of the current offsetting at the end end of the prior offsetting at the end
year of the current year year (Restated) of the prior year(Restated)
Deferred tax assets -372366000.07 415063477.03 -313481369.78 434498820.95
Deferred tax liabilities -372366000.07 4659638104.37 -313481369.78 4855019835.33
- 105 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax - continued
(4) Deductible temporary differences and deductible losses for which deferred tax assets are
not recognized
Item 31/12/2023 31/12/2022
Deductible temporary differences 966126806.19 930204772.41
Deductible losses 2334799700.50 2112659943.00
Total 3300926506.69 3042864715.41
The Group recognizes deferred income tax assets to the extent of future taxable income that is
likely to be obtained to offset the deductible temporary differences and deductible losses. For the
excess of deductible temporary differences and deductible losses over future taxable income no
deferred tax assets are recognized.
(5) Deductible losses for which deferred tax assets are not recognized will be expired in the
following years:
Year 31/12/2023 31/12/2022
2023-515101493.80
2024483200212.68488358232.03
2025375189307.19375208491.05
2026110765532.94112756494.15
2027612819518.30600178442.73
2028752825129.39-
Deductible losses due after 2029 - 21056789.24
Total 2334799700.50 2112659943.00
23. Other non-current assets
Item 31/12/2023 31/12/2022
Advances for the channel project (Note) 1013508448.79 989752762.75
Prepayments for fixed assets 144896516.09 117094834.14
Prepayments for terminal franchise 29807737.16 27493116.21
Others 5943287.58 52448665.69
total 1194155989.62 1186789378.79
Note: This represents that the Company's subsidiary Zhanjiang Port upon its reorganization into
a joint stock company in 2007 signed the Channel Arrangement Agreement with State-
owned Assets Supervision and Administration Commission of Zhanjiang ("Zhanjiang
SASAC") and China Merchants International Terminal (Zhanjiang) Co. Ltd. According to
the agreement the channel belongs to Zhanjiang SASAC therefore the 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 YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
24. Short-term borrowings
(1) Classification of short-term borrowings
Item 31/12/2023 31/12/2022
Credit borrowings 15593937427.86 7149322782.85
Guaranteed borrowings (Note 1) 110096708.33 -
Mortgage borrowings (Note 2) 10011152.78 15015583.33
Total 15714045288.97 7164338366.18
Note 1: The borrowings are guaranteed by Guangdong Zhanjiang Port Logistics Co. Ltd. ("Zhanjiang
Port Logistics") a subsidiary of the Company.Note 2: It represents the short-term borrowings obtained by Zhoushan RoRo a subsidiary of the
Company with the land use rights and buildings on the land held by it as the collateral.
(2) As at 31 December 2023 the Group has no short-term borrowings that are overdue.
25. Notes payable
Category 31/12/2023 31/12/2022
Bank acceptance 64280925.21 -
Commercial acceptance 9180240.61 -
Total 73461165.82 -
26. Accounts payable
Item 31/12/2023 31/12/2022
Service fee 246400717.07 299350272.24
Material purchase fee 117170447.10 132460163.17
Construction fee 100672753.10 110687325.42
Equipment payments 52762565.74 87445302.02
Rental fee 13591518.23 8304019.32
Others 161167136.01 172902315.49
Total 691765137.25 811149397.66
(1) Aging of accounts payable
31/12/202331/12/2022
Aging Amount Proportion Amount Proportion(%) (%)
Within 1 year 617528837.76 89.27 710976970.28 87.65
1-2 years 26506267.62 3.83 47038049.65 5.80
2-3 years 30254034.46 4.37 26667189.69 3.29
More than 3 years 17475997.41 2.53 26467188.04 3.26
Total 691765137.25 100.00 811149397.66 100.00
- 107 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
26. Accounts payable - continued
(2) Significant accounts payable aged more than 1 year
Name of entity 31/12/2023 Aging Reason for outstanding ornot being carried forward
Quanzhou Antong Logistics Co. Ltd. 16948161.45 2-3 years To be paid uponconfirmation by both parties.
27. Receipts in advance
Item 31/12/2023 31/12/2022
Rental fee received in advance 8993727.31 6205443.31
Management fee received in advance 2659217.99 -
Others 5734592.06 3681088.28
Total 17387537.36 9886531.59
(1) Aging of receipts in advance
31/12/202331/12/2022
Aging Amount Proportion(%) Amount
Proportion
(%)
Within 1 year 17387537.36 100.00 9884079.59 99.98
1-2 years - - - -
2-3 years - - - -
More than 3 years - - 2452.00 0.02
Total 17387537.36 100.00 9886531.59 100.00
(2) As at 31 December 2023 the Group has no significant receipts in advance aged more than
one year.
(3) As at 31 December 2023 the Group has no receipts in advance with significant changes in
carrying amount.
28 Contract liabilities
(1) Details of contract liabilities
Item 31/12/2023 31/12/2022
Port charges received in advance 84869413.45 55045635.27
Service fee received in advance 26198333.07 59729035.75
Warehousing fee received in advance 3204091.87 3048588.90
Others 27808262.61 24076291.11
Total 142080101.00 141899551.03
(2) There are no significant changes in carrying amount of contract liabilities during the year.
- 108 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28 Contract liabilities - continued
(3) As at 31 December 2023 the Group has no significant contract liabilities aged more than
one year.
(4) Qualitative analysis of contract liabilities
Contract liabilities mainly represent the amount received by the Group for the port services
provided to customers. The payment is collected according to the time agreed in the contract. The
Group recognizes contract revenue based on the progress of the contract. The contract liabilities
will be recognized as revenue after the Group fulfils its performance obligations.
(5) Revenue recognized in the year and included in the carrying amount of contract liabilities
at the beginning of the year
An amount of RMB 91180530.23 included in the carrying amount of contract liabilities at the
beginning of 2023 has been recognized as revenue in the current year including contract
liabilities arising from settled but unfinished construction resulting from the contract of service
fees received in advance amounting to RMB 24937772.66 contract liabilities arising from
settled but unfinished construction resulting from the contract of port charges received in advance
amounting to RMB 50149195.64 contract liabilities arising from settled but unfinished
construction resulting from contract of warehousing fee received in advance amounting to RMB
3048588.90 and contract liabilities arising from settled but unfinished construction resulting
from other contracts amounting to RMB 13044973.03.
29. Employee benefits payable
(1) Presentation of employee benefits payable
Effect of
Item 31/12/2022 changes in the Increase for the Decrease for thescope of year year 31/12/2023
consolidation
1. Short-term benefits 921533425.99 -35636773.69 3243766906.07 3219390381.18 910273177.19
2. Post-employment benefits
- defined contribution plan 13383514.93 -4201592.85 351623760.71 352451682.76 8354000.03
3. Termination benefits 2423282.78 - 5158916.08 7582198.86 -
4. Other benefits due within 1 year - - 4053449.56 4053449.56 -
5. Others -505505.57 -631121.04 5145597.17 4671541.13 -662570.57
Total 936834718.13 -40469487.58 3609748629.59 3588149253.49 917964606.65
- 109 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
29. Employee benefits payable - continued
(2) Presentation of short-term benefits
Effect of
Item 31/12/2022 changes in the Increase for the Decrease for thescope of year year 31/12/2023
consolidation
1. Wages and salaries bonuses
allowances and subsidies 897442262.83 -33339184.53 2606547914.19 2586737715.36 883913277.13
2. Staff welfare - - 169221198.72 169221198.72 -
3. Social insurance contributions 10545539.44 -891098.34 204136593.97 199978211.04 13812824.03
Including: Medical insurance 8631543.96 -836747.58 173636271.40 170223587.11 11207480.67
Work injury insurance 53916.77 -54350.76 17211021.96 17210587.97 -
Others 1860078.71 - 13289300.61 12544035.96 2605343.36
4. Housing funds -95060.47 274.00 198040769.72 198042657.10 -96673.85
5. Labour union and employee
education funds 13642129.96 -1406764.82 50814109.87 50314255.40 12735219.61
6. Other short-term benefits -1445.77 - 15006319.60 15096343.56 -91469.73
Total 921533425.99 -35636773.69 3243766906.07 3219390381.18 910273177.19
(3) Presentation of defined benefit plans
Effect of
Item 31/12/2022 changes in the Increase for the Decrease for thescope of year year 31/12/2023
consolidation
I. Basic pension 9761086.14 -1383333.72 258989715.66 259128522.95 8238945.13
II. Unemployment insurance 49026.91 -49434.91 6077524.71 6077116.71 -
III. Enterprise annuity 3573401.88 -2768824.22 86556520.34 87246043.10 115054.90
Total 13383514.93 -4201592.85 351623760.71 352451682.76 8354000.03
The Company and its domestic subsidiaries participate in the pension insurance and
unemployment insurance plan established by government institutions as required. According to
such plans the Group contributes in proportion to the local government. The Group has
established an enterprise annuity system and accrues and pays the enterprise annuity according to
the enterprise annuity system of the Company and its domestic subsidiaries. In addition to above
contributions the Group has no further payment obligations. The corresponding expenses are
included in profit or loss for the period or the cost of related assets when incurred.
30. Taxes payable
Effect of Effect of translation of
Item 31/12/2022 changes in the Provision for Payment for the financial statementsscope of the year year denominated in foreign 31/12/2023
consolidation currencies
Enterprise
income tax 804846345.79 -3002884.36 1123434326.28 1108672570.98 3089589.10 819694805.83
VAT 30032002.80 -613554.49 205611948.35 215161352.07 352761.87 20221806.46
Other taxes 83054820.50 -4006342.06 522874894.04 522097230.12 3310817.85 83136960.21
Total 917933169.09 -7622780.91 1851921168.67 1845931153.17 6753168.82 923053572.50
- 110 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables
(1) Presentation of other payables
Item 31/12/2023 31/12/2022
Dividends payable 111897214.27 92374921.29
Other payables 1542724955.75 1663510336.97
Total 1654622170.02 1755885258.26
(2) Dividends payable
Item 31/12/2023 31/12/2022
Ordinary share dividends 111897214.27 92374921.29
Including: China Merchants Zhangzhou Development Zone
Co. Ltd. (Note) 77734806.46 20000000.00
Dalian Port Container Development Co. Ltd.("Dalian Port Container") 16160696.61 14000000.00
Dalian Port Jifa Logistics Co. Ltd. 9575104.42 3000000.00
Yingkou Port Group Co. Ltd. ("Yingkou Port
Group") 5372456.78
-
Yiu Lian Dockyards Limited 2334150.00 -
Qingdao Port (Group) Co. Ltd. 720000.00 -
Zhanjiang Infrastructure Construction Investment
Group Co. Ltd. - 41400234.06
Sri Lanka Ports Authority - 10446900.00
Dalian City Construction Investment Group Co. Ltd
(formerly known as Dalian City Investment Holding - 3527787.23
Group Co. Ltd. )
Note: As at 31 December 2023 the Group has no significant dividends payable aged more than
one year.
(3) Other payables
(a) Disclosure of other payables by nature
Item 31/12/2023 31/12/2022
Amount payable for construction and quality warranty 575941472.21 643816817.51
Guarantees and deposits 246316308.32 221628920.81
Accrued expenses 139920340.25 190048988.98
Customer discount 129780042.30 164622341.62
Port construction and security fee 27939655.23 36697168.04
Balance of payment for transfer of land use rights - 11295700.00
Others 422827137.44 395400400.01
Total 1542724955.75 1663510336.97
- 111 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables - continued
(3) Other payables - continued
(b) Significant other payables aged more than one year or past due
Company name Amount payable Aging Reason for being outstanding
Transport Bureau of Shenzhen Municipality 79679948.23 1-2 years and more than 3(Ports Administration of Shenzhen Municipality) years To be paid upon confirmation by both parties
CCCC Water Transport Planning and Design Institute
Co. Ltd. 58666012.94
1-2 years 2-3 years and
more than 3 years To be paid upon confirmation by both parties
Lac Assal Investment Holding Company Limited 48162348.73 1-2 years To be paid upon confirmation by both parties
Shanghai Zhenhua Heavy Industries Co. Ltd. 37248716.35 1-2 years and more than 3 The contracted settlement condition has notyears been reached
Shantou Transportation Bureau 31358355.47 More than 3 years To be paid upon confirmation by both parties
Wuxi Huadong Heavy Machinery Co. Ltd. 10090410.68 2-3 years To be paid upon confirmation by both parties
China Merchants Real Estate (Shenzhen) Co. Ltd. 10079369.00 More than 3 years To be paid upon confirmation by both parties
Guangdong Groton Group Co. Ltd. (formerly known as The contracted settlement condition has not
Guangdong Hengtai Guotong Industrial Co. Ltd.) 10000000.00 More than 3 years been reached
Shantou Finance Bureau 10000000.00 More than 3 years To be paid upon confirmation by both parties
Total 295285161.40 —— ——
32. Non-current liabilities due within one year
Item 31/12/2023 31/12/2022
Long-term borrowings due within one year (Note VIII 34) 1033008184.01 2313191859.96
Including: Credit borrowings 532282391.00 1368934869.99
Guaranteed borrowings 410725775.58 219564028.82
Mortgage and pledged borrowings 30352589.61 715461578.62
Guaranteed and mortgage borrowings 59647427.82 9231382.53
Bonds payable due within one year (Note VIII 35) 5267490749.32 8668651537.27
Lease liabilities due within one year (Note VIII 36) 248634286.86 306942164.80
Long-term payables due within one year (Note VIII 37) 184534373.50 155665725.85
Long-term employee benefits payable due within one year
(Note VIII 38) 49730825.21 54414877.57
Other non-current liabilities due within one year (Note VIII 41) 34005870.35 142357523.50
Total 6817404289.25 11641223688.95
33. Other current liabilities
(1) Details of other current liabilities
Item 31/12/2023 31/12/2022
Short-term bonds payable 2007190136.98 3017713424.64
Accrued professional agency fee 114638017.33 124799040.22
Others 22014380.22 18635061.10
Total 2143842534.53 3161147525.96
- 112 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Other current liabilities - continued
(2) Changes in short-term bonds payable
Interest
Name of bond Face value Coupon
Amortization of Is it in
rate Date of issue
Term of
the bond Amount of issue 31/12/2022
Amount issued in accrued
the current year based on par premiums or
Repayment in 31/12/2023 breach of
value discounts
the current year contract
2.43% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 2.43% 2023-11-7 90 days 2000000000.00 - 2000000000.00 7190136.98 - - 2007190136.98 No
2.35% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 2.35% 2023-3-1 180 days 2000000000.00 - 2000000000.00 23114754.10 - 2023114754.10 - No
2.05% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 2.05% 2023-6-14 180 days 2000000000.00 - 2000000000.00 20163934.43 - 2020163934.43 - No
1.75% RMB 1 billion Super &
Short-term Commercial Paper 1000000000.00 1.75% 2022-9-1 270 days 1000000000.00 1005657534.24 - 7287671.24 - 1012945205.48 - No
1.93% RMB 2 billion Super &
Short-term Commercial Paper 2000000000.00 1.93% 2022-9-8 180 days 2000000000.00 2012055890.40 - 6979725.60 - 2019035616.00 - No
Total 9000000000.00 —— —— —— 9000000000.00 3017713424.64 6000000000.00 64736222.35 - 7075259510.01 2007190136.98
- 113 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Long-term borrowings
Category 31/12/2023 31/12/2022 Range of year-endinterest rate
Credit borrowings 16857281855.60 12319883867.05 1.20%-3.80%
Guaranteed borrowings (Note 1) 845725775.58 1020670858.02 2.95%-12.90%
Mortgage and pledged borrowings (Note 2) 314794387.22 1082723114.44 3.40%-3.96%
Guaranteed and mortgage borrowings (Note 3) 1242750120.32 280013198.30 2.95%
Total 19260552138.72 14703291037.81 ——
Less: Long-term borrowings due within one year 1033008184.01 2313191859.96 ——
Including: Credit borrowings 532282391.00 1368934869.99 ——
Guaranteed borrowings 410725775.58 219564028.82 ——
Mortgage and pledged borrowings 30352589.61 715461578.62 ——
Guaranteed and mortgage borrowings 59647427.82 9231382.53
Long-term borrowings due after one year 18227543954.71 12390099177.85 ——
Note 1: The borrowings are guaranteed by Shenzhen Magang Godown & Wharf Co. Ltd. China
Merchants Port (Shenzhen) Co. Ltd. and CM Port.Note 2: On 31 December 2023 the Group obtained the long-term borrowings of RMB
314794387.22(31 December 2022: RMB 1082723114.44) with the land with property
right fixed assets and construction in progress of Yide Port Co. Ltd. ("Yide Port") as
well as the land with property right of Guangdong Shunkong Port Development and
Construction Co. Ltd. ("Shunkong Port") as collaterals.Note 3: On 31 December 2023 Shenzhen Haixing Harbor Development Co. Ltd. ("Shenzhen
Haixing") obtained the long-term borrowings of RMB 1242750120.32 (31 December
2022: RMB 280013198.30) with the land with property right as collaterals and the
borrowings are guaranteed by CM Port and Sinotrans South China Co. Ltd.Details of mortgage and pledged borrowings are as follows:
Company name 31/12/2023 31/12/2022 Collateral and pledge
Bank of China Qianhai Shekou Branch 1242750120.32 280013198.30 Land use rights of Shenzhen Haixing
China Construction Bank Shunde Branch 206239867.27 236479995.32 Land use rights and fixed assets ofYide Port
Bank of Communications Co. Ltd. Guangdong Branch 108554519.95 - Land use rights (Phase II) of Shunde
China Development Bank Corporation - 494997308.55 The Group's entire equity in CICT
International Finance Corporation - 123849460.76
African Development Bank - 56864864.36
Nederlandse Financierings-Maatschappij voor
Ontwikkelingslanden N.V. - 46859749.65
The OpecFund For International Development - 40139904.25 The Group's entire equity in TML
Societe de Promotion et de Participation pour
la Cooperation Economique S.A. - 40170265.09
Deutsche Investitions-und
Entwicklungsgesellschaft MBH - 33449920.21
China Minsheng Bank Co. Ltd. Zhoushan Branch - 9911646.25 Land use rights and fixed assets ofZhoushan RoRo
Total 1557544507.54 1362736312.74
Note: See Note (VIII) 64 for the above mortgages and pledges.- 114 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable
(1) Bonds payable
Item 31/12/2023 31/12/2022
5.000% USD 600 million corporate bond 4304565371.23 4227154465.35
4.750% USD 500 million corporate bond 3605285143.36 3542544662.47
4.000% USD 500 million corporate bond 3544024689.32 3482186896.02
2.690% RMB 3 billion corporate bond 3027415890.40 3027415890.40
2.450% RMB 3 billion corporate bond 3023560273.97 3023560273.97
3.520% RMB 2 billion corporate bond 2050147945.19 2050147945.19
4.375% USD 900 million corporate bond - 6371347105.64
3.360% RMB 2 billion corporate bond - 2032587397.25
Total 19554999313.47 27756944636.29
Less: Bonds payable due within one year 5267490749.32 8668651537.27
Bonds payable due after one year 14287508564.15 19088293099.02
- 115 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable - continued
(2) Details of bonds payable
Effect of
Amount translation of
Name of bonds Face value Coupon Date of issue Term of
Interest accrued Amortization Is it in
rate the bond Amount of issue 31/12/2022
issued in Repayment in financial
the current based on par of premiums current year statements 31/12/2023 breach of
year value or discounts denominated in contract
foreign currencies
4.375% USD 900 million corporate
bond USD 900000000.00 4.3750% 2018-8-6 5 years USD 900000000.00 6371347105.64 - 165969062.10 7181597.31 6594432388.71 49934623.66 - No
5.000% USD 600 million corporate
bond USD 600000000.00 5.0000% 2018-8-6 10 years USD 600000000.00 4227154465.35 - 211325733.29 5708335.36 211183578.27 71560415.50 4304565371.23 No
4.750% USD 500 million corporate
bond USD 500000000.00 4.7500% 2015-8-3 10 years USD 500000000.00 3542544662.47 - 167360385.31 2662117.20 167360385.38 60078363.76 3605285143.36 No
3.360% RMB 2 billion corporate
bond 2000000000.00 3.3600% 2020-7-7 3 years 2000000000.00 2032587397.25 - 34612602.75 - 2067200000.00 - - No
3.520% RMB 2 billion corporate
bond 2000000000.00 3.5200% 2021-4-14 3 years 2000000000.00 2050147945.19 - 70400000.00 - 70400000.00 - 2050147945.19 No
4.000% USD 500 million corporate
bond USD 500000000.00 4.0000% 2022-6-1 5 years USD 500000000.00 3482186896.02 - 140882105.54 2781931.67 140841532.67 59015288.76 3544024689.32 No
2.690% RMB 3 billion corporate
bond 3000000000.00 2.6900% 2022-8-29 3 years 3000000000.00 3027415890.40 - 80700000.00 - 80700000.00 - 3027415890.40 No
2.450% RMB 3 billion corporate
bond 3000000000.00 2.4500% 2022-9-5 2 years 3000000000.00 3023560273.97 - 73500000.00 - 73500000.00 - 3023560273.97 No
Total —— —— —— —— —— 27756944636.29 - 944749888.99 18333981.54 9405617885.03 240588691.68 19554999313.47 No
Less: Bonds payable due within
one year —— —— —— —— —— 8668651537.27 —— —— —— —— 5267490749.32 ——
Bonds payable due after one year —— —— —— —— —— 19088293099.02 —— —— —— —— 14287508564.15 ——
- 116 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Lease liabilities
(1) Lease liabilities
Category 31/12/2023 31/12/2022
Lease payment 2782133802.80 1963098776.36
Unrecognized financing cost -1532327309.02 -707805697.52
Total 1249806493.78 1255293078.84
Less: Lease liabilities due within one year 248634286.86 306942164.80
Lease liabilities due after one year 1001172206.92 948350914.04
(2) Maturity of lease liabilities
Item 31/12/2023
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 298065006.16
2nd year subsequent to the balance sheet date 91365497.12
3rd year subsequent to the balance sheet date 86669003.03
Subsequent years 2306034296.49
Total 2782133802.80
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
37. Long-term payables
(1) Presentation of long-term payables
Item 31/12/2023 31/12/2022
Long-term payables 4001789922.65 3698632219.45
Special payables 5606653.02 8349096.71
Total 4007396575.67 3706981316.16
Less: Long-term payables due within one year 184534373.50 155665725.85
Long-term payables due after one year 3822862202.17 3551315590.31
(2) Long-term payables
Item 31/12/2023 31/12/2022
Terminal management rights (Note) 3958393516.47 3657579951.15
Others 43396406.18 41052268.30
Total 4001789922.65 3698632219.45
Less: Long-term payables due within one year 184534373.50 155665725.85
Long-term payables due after one year 3817255549.15 3542966493.60
- 117 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term payables - continued
(2) Long-term payables - continued
Note: Mainly from CICT and TCP terminal management rights purchased. On 12 August 2011
the Group reached a 35-year building operation and transfer agreement through the subsidiary
CICT and Sri Lanka Port Authority on the building operation management and development of
Colombo Port South Container Terminal (hereinafter referred to as "BOT"). The above-
mentioned amount payable for the acquisition of terminal management rights is determined by
discounting the amount to be paid in the future using the prevailing market interest rate
according to the BOT agreement. As at 31 December 2023 the amount payable for the
acquisition of terminal management rights is RMB 876500567.56.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.On 9 September 2021 TCP a subsidiary of the Company entered into a supplemental
agreement to the Lease Agreement with APPA for the franchising rights of the Ports of
Paranaguá and Antonina pursuant to which the base figure for the calculation of
franchising rights for the Ports of Paranaguá and Antonina was adjusted from Brazil IGP-
M Inflation Index ("IGP-M index") to the Extended National Consumer Price Index
("IPCA index") of Brazilian Institute of Geography and Statistics("IBGE"). In November
2021 TCP readjusted the franchising rights using the IPCA index. As at 31 December
2023 the amount of franchising rights payable was RMB 3081892948.91.
(3) Special payables
Effect of
Item 31/12/2022 Increase for Decrease for changes in thethe year the year scope of 31/12/2023 Reason
consolidation
Employee housing fund 5126641.68 480061.34 50.00 - 5606653.02 Note
Innovation workshop
for model workers 3222455.03 - - -3222455.03 -
Total 8349096.71 480061.34 50.00 -3222455.03 5606653.02
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.- 118 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Long-term employee benefits payable
(1) Long-term employee benefits payable
Item 31/12/2023 31/12/2022
Post-employment benefits - net liabilities of defined benefit plans 509605071.25 516950669.03
Termination benefits 58098932.22 64274552.96
Others (Note) 85036743.65 112285587.01
Total 652740747.12 693510809.00
Less: Long-term employee benefits payable due within one year 49730825.21 54414877.57
Long-term employee benefits payable due after one year 603009921.91 639095931.43
Note: This represents the employee relocation costs of the Company's subsidiary Shantou Port in
connection with land acquisition and reservation.
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item 2023 2022
I. Opening balance 516950669.03 463858274.44
II. Defined benefit cost included in profit or loss for the period 31630084.71 24392165.72
1. Current service cost 14097094.50 11191538.44
2. Past service cost 2420000.00 -
3. Interest adjustment 15112990.21 13200627.28
III. Defined benefit cost included in other comprehensive income -22975434.75 50820198.04
1. Actuarial gains -23856287.15 49959657.35
2. Effect of exchange rate changes 880852.40 860540.69
IV. Other changes -16000247.74 -22119969.17
1. Benefits paid -16000247.74 -22119969.17
2. Changes in the scope of consolidation - -
V. Closing balance 509605071.25 516950669.03
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.- 119 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Provisions
Effect of
translation of
Item 31/12/2022 Increase for Decrease for financialthe year the year statements 31/12/2023 Reason
denominated in
foreign currencies
Pending litigation 35365156.43 52650477.00 7489688.34 5064114.32 85590059.41 Note
Sales discount - 179125657.39 179125657.39 - -
Total 35365156.43 231776134.39 186615345.73 5064114.32 85590059.41
Note: This represents the estimated compensation amount that the Company's subsidiary TCP
may need to pay due to the pending litigation.
40. Deferred income
Item 31/12/2022 Increase for the year Decrease for theyear 31/12/2023
Government grants 1031273189.74 41207834.25 47704466.26 1024776557.73
Total 1031273189.74 41207834.25 47704466.26 1024776557.73
41. Other non-current liabilities
Item 31/12/2023 31/12/2022
Actuarial cost for the calculation of pension benefit difference
for the public security bureau staff (Note 1) 198642177.67 175742813.67
Related party borrowings (Note 2) 11945870.35 3162000.00
Third party borrowings (Note 2) - 143755523.50
Berth priority call right (Note 3) 439990.79 4480217.05
Others 2612095.27 1600086.28
Total 213640134.08 328740640.50
Less: Other non-current liabilities due within one year 34005870.35 142357523.50
Including: Actuarial cost for the calculation of pension benefits
difference for the public security bureau staff 22060000.00 15440000.00
Related party borrowings 11945870.35 3162000.00
Third party borrowings - 123755523.50
Other non-current liabilities due after one year 179634263.73 186383117.00
- 120 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Other non-current liabilities - continued
Note 1: It represents the transfer of Zhanjiang Port Public Security Bureau to the People's
Government of Zhanjiang Municipality by Zhanjiang Port a subsidiary of the Company
in 2020 in accordance with the Notice on the Issuance of the Program on Deepening the
Management System Reform of Ganghang Public Security Organs (Zhong Yang Bian
Ban Fa No. 327 (2017)) and the Notice on the Issuance of the Implementation Plan for
Deepening the Management System Reform of Ganghang Public Security Organs in
Guangdong Province (Yue Ji Bian Ban Fa No. 221 (2018)). The former in-service police
officers of Zhanjiang Port Public Security Bureau were transferred as civil servants in
accordance with state regulations the retired police officers were included in the scope
of pension insurance of the government departments and public institutions in Zhanjiang
and the difference between the pension benefits under the original standard and the
retirement benefits of Zhanjiang municipal police officers (the "pension benefit
difference") was borne by Zhanjiang Port.Shantou Port a subsidiary of the Company transferred Shantou Municipal Public
Security Bureau Ganghang Branch (formerly the Shantou Port Public Security Bureau)
to Shantou Municipal Government and Shantou Municipal Public Security Bureau
Ganghang Branch was fully taken over by Shantou Municipal Public Security Bureau.The in-service police officers were transferred as civil servants in accordance with state
regulations the retired police officers were included in the scope of pension insurance of
the government departments and public institutions in Shantou and the pension benefit
difference was borne by Shantou Port.Note 2: It represents the principal and interest on borrowings of the subsidiary of the Company
Shunkong Port from its minority shareholder Guangdong Shunkong City Investment
Real Estate Co. Ltd. and its related party Guangdong Shunkong Transportation
Investment Co. Ltd.Note 3: It represents the berth priority call right as agreed in the contract entered into with the
customers in 2003 with total amount of USD14 million. The Group must give priority
to the berthing requirements of the contracted customers during the contract period.Chiwan Container Terminal amortized the berth priority call right over 20 years using
straight-line method.- 121 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital
Changes for the year
Item 31/12/2022 New issue Capitalization
of share Bonus issue of surplus Others Sub-total
31/12/2023
reserve
2023
I. Restricted tradable shares —— —— —— —— —— —— ——
1. State-owned shares - - - - - - -
2. State-owned corporate shares 576709537.00 - - - - - 576709537.00
3. Other domestic shares 7366.00 - - - -7366.00 -7366.00 -
4. Foreign shares - - - - - - -
Total restricted tradable shares 576716903.00 - - - -7366.00 -7366.00 576709537.00
II. Non-restricted tradable shares —— —— —— —— —— —— ——
1. Ordinary shares denominated in RMB 1742468718.00 - - - 976.00 976.00 1742469694.00
2. Foreign capital shares listed domestically 179889040.00 - - - 6390.00 6390.00 179895430.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 1922357758.00 - - - 7366.00 7366.00 1922365124.00
III. Total shares 2499074661.00 - - - - - 2499074661.00
- 122 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital - continued
Changes for the year
Item 31/12/2021 New issue Capitalization
of share Bonus issue of surplus Others Sub-total
31/12/2022
reserve
2022
I. Restricted tradable shares —— —— —— —— —— —— ——
1. State-owned shares - - - - - - -
2. State-owned corporate shares - 576709537.00 - - - 576709537.00 576709537.00
3. Other domestic shares 9821.00 - - - -2455.00 -2455.00 7366.00
4. Foreign shares 1148648648.00 - - - -1148648648.00 -1148648648.00 -
Total restricted tradable shares 1148658469.00 576709537.00 - - -1148651103.00 -571941566.00 576716903.00
II. Non-restricted tradable shares —— —— —— —— —— —— ——
1. Ordinary shares denominated in RMB 593819745.00 - - - 1148648973.00 1148648973.00 1742468718.00
2. Foreign capital shares listed domestically 179886910.00 - - - 2130.00 2130.00 179889040.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 773706655.00 - - - 1148651103.00 1148651103.00 1922357758.00
III. Total shares 1922365124.00 576709537.00 - - - 576709537.00 2499074661.00
- 123 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Capital Reserve
Item 31/12/2022 Increase Decrease 31/12/2023
2023
I. Capital premium 34208812963.50 2244317625.22 - 36453130588.72
Including: Capital contributed by investors 17068816277.34 - - 17068816277.34
Differences arising from business combination
involving enterprises under common control 13302937205.73 - - 13302937205.73
Differences arising from acquisition of minority
interests (Note 1) 2165423814.02 2242433715.25 - 4407857529.27
Others 1671635666.41 1883909.97 - 1673519576.38
II. Other capital reserve 542827871.75 104628733.77 23740391.18 623716214.34
Including: Transfer from capital reserve under the previous
accounting system -2781133.00 - - -2781133.00
Unexercised share-based payment (Note 2) 5591402.00 1528712.73 475524.37 6644590.36
Other changes in owners' equity of the investee
under equity method other than changes in net
profit or loss profit distribution and other 540017602.75 103100021.04 23264866.81 619852756.98
comprehensive income
Total 34751640835.25 2348946358.99 23740391.18 37076846803.06
2022
I. Capital premium 23189922809.62 11018890153.88 - 34208812963.50
Including: Capital contributed by investors 7012992483.94 10055823793.40 - 17068816277.34
Differences arising from business combination
involving enterprises under common control 13302937205.73 - - 13302937205.73
Differences arising from acquisition of minority
interests 1215209939.74 950213874.28 - 2165423814.02
Others 1658783180.21 12852486.20 - 1671635666.41
II. Other capital reserve 402779949.08 151303029.21 11255106.54 542827871.75
Including: Transfer from capital reserve under the previous
accounting system -2781133.00 - - -2781133.00
Unexercised share-based payment 9956938.60 5617671.30 9983207.90 5591402.00
Other changes in owners' equity of the investee
under equity method other than changes in net
profit or loss profit distribution and other 395604143.48 145685357.91 1271898.64 540017602.75
comprehensive income
Total 23592702758.70 11170193183.09 11255106.54 34751640835.25
Note 1: The changes for the year mainly represent the dividends attributable to CM Port that the
Company chose to acquire in the form of share replacement and shareholding increase
which increased the capital reserve by RMB 2269118327.61. Refer to Note (XI) 2 for
details.Note 2: Refer to Note (XVI) 2 for details.- 124 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Other comprehensive income
2023
Less: Amount Less: Amount
included in other included in other
comprehensive comprehensive Attributable to
Item 31/12/2022 Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the minority Other changes 31/12/2023
year 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
2023
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss 51014303.06 60755557.83 - - 846996.46 -73874071.89 133782633.26 - -22859768.83
Including: Changes arising from remeasurement of defined
benefit plans -10189712.88 25003573.00 - - - 7480103.34 17523469.66 - -2709609.54
Other comprehensive income that can't be
reclassified to profit or loss under equity method -8907673.34 32473509.74 - - - -83841725.07 116315234.81 - -92749398.41
Changes in fair value of other equity instruments 70111689.28 3278475.09 - - 846996.46 2487549.84 -56071.21 - 72599239.12
II. Other comprehensive income that will be reclassified
subsequently to profit or loss -740567922.92 149948207.40 - - - -140198902.60 290147110.00 - -880766825.52
Including: Other comprehensive income that may be
reclassified to profit or loss under equity method -60762188.43 -767504700.07 - - - -366028318.84 -401476381.23 - -426790507.27
Translation differences of financial statements
denominated in foreign currencies -679805734.49 917452907.47 - - - 225829416.24 691623491.23 - -453976318.25
Total other comprehensive income -689553619.86 210703765.23 - - 846996.46 -214072974.49 423929743.26 - -903626594.35
2022 (Restated)
I. Other comprehensive income that will not be reclassified
subsequently to profit or loss 81233996.26 -72230027.20 - - 329334.05 -22706023.29 -49853337.96 7513669.91 51014303.06
Including: Changes arising from remeasurement of defined
benefit plans 2603415.85 -49039668.45 - - - -12793128.73 -36246539.72 - -10189712.88
Other comprehensive income that can't be
reclassified to profit or loss under equity method 2643088.68 -25906733.50 - - - -11550762.02 -14355971.48 - -8907673.34
Changes in fair value of other equity instruments 75987491.73 2716374.75 - - 329334.05 1637867.46 749173.24 7513669.91 70111689.28
II. Other comprehensive income that will be reclassified
subsequently to profit or loss -971359314.44 1701191299.27 - - - 230791391.52 1470399907.75 - -740567922.92
Including: Other comprehensive income that may be
reclassified to profit or loss under equity method 49431519.10 -246633232.89 - - - -110193707.53 -136439525.36 - -60762188.43
Translation differences of financial statements
denominated in foreign currencies -1020790833.54 1947824532.16 - - - 340985099.05 1606839433.11 - -679805734.49
Total other comprehensive income -890125318.18 1628961272.07 - - 329334.05 208085368.23 1420546569.79 7513669.91 -689553619.86
- 125 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
45. Special reserve
Item 31/12/2022 Increase Decrease 31/12/2023
Safety production cost 26358259.97 61589514.21 53943779.77 34003994.41
46. Surplus reserve
Item 31/12/2022 Increase Decrease 31/12/2023
Statutory surplus reserve 1001917449.15 94063114.53 - 1095980563.68
47. Unappropriated profit
Proportion of
Item Amount appropriation or
allocation
2023
Unappropriated profit at the beginning of the year before adjustment 16679688347.09
Add: Adjustment to unappropriated profit at beginning of the year 22299954.05
Including: Changes in accounting policies 22299954.05
Unappropriated profit at the beginning of the year after adjustment 16701988301.14
Add: Net profit of the year attributable to shareholders of the Company 3571800762.16
Unappropriated profit carried forward from other comprehensive income -
Less: Transfer to statutory surplus reserve in the current year 94063114.53
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1124583597.45 Note 1
Ordinary shares' dividends converted into share capital -
Pension benefit difference 7944921.60 Note 2
Transfer to the National Council for Social Security Fund of the PRC -
Distribution to holders of other equity instruments -
Others 1883909.97
Unappropriated profit at the end of the year 19045313519.75
Proportion of
Item Amount appropriation or
allocation
2022 (Restated)
Unappropriated profit at the beginning of the year before adjustment 14205879106.49
Add: Adjustment to unappropriated profit at beginning of the year 21052360.17
Including: Changes in accounting policies 21052360.17
Unappropriated profit at the beginning of the year after adjustment 14226931466.66
Add: Net profit of the year attributable to shareholders of the Company 3338693816.70
Unappropriated profit carried forward from other comprehensive income 7513669.91
Less: Transfer to statutory surplus reserve in the current year 40734887.15
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 826617003.32
Ordinary shares' dividends converted into share capital -
Pension benefit difference 3798761.66
Distribution to holders of other equity instruments
Others -
Unappropriated profit at the end of the year 16701988301.14
- 126 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Unappropriated profit - continued
Note 1: According to the resolution of shareholders' meeting on 22 May 2023 the Company
distributes cash dividends of RMB 4.50 (inclusive of tax) for every 10 shares totalling
RMB 1124583597.45 on the basis of the total shares of 2499074661 at the end of
2022.
Note 2: This represents the difference between the pension benefits under the original standard
and the retirement benefits of Shantou municipal police officers borne by Shantou Port.Shantou Port recognizes the related liabilities based on the actuarial results and
unappropriated profit of RMB 7944921.60 is eliminated based on the proportion of
equity interest in Shantou Port.
48. Operating income and operating costs
(1) Details of operating income and operating costs
20232022
Item
Income Cost Income Cost
Principal operation 15568944030.70 9085897544.06 16072394601.93 9433786605.46
Other operations 181531749.52 232289163.69 158094525.62 216675107.48
Total 15750475780.22 9318186707.75 16230489127.55 9650461712.94
- 127 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(2) Breakdown information of operating income and operating costs
Ports operation Bonded logistics operation Other operations Total
Category of contracts Operating Operating
income Operating costs income Operating costs
Operating
income Operating costs
Operating
income Operating costs
Mainland China Hong Kong
and Taiwan area 10284643568.10 6714915284.62 492433288.31 254604583.47 181531749.52 232289163.69 10958608605.93 7201809031.78
- Pearl River Delta 6075691801.01 3640281453.34 343594001.79 181329868.92 181531749.52 232289163.69 6600817552.32 4053900485.95
- Yangtze River Delta 557788311.93 361926675.75 - - - - 557788311.93 361926675.75
- Bohai Rim 76760801.96 63825074.56 148839286.52 73274714.55 - - 225600088.48 137099789.11
- Other areas 3574402653.20 2648882080.97 - - - - 3574402653.20 2648882080.97
Other countries 4751630018.56 2081165945.51 40237155.73 35211730.46 - - 4791867174.29 2116377675.97
Total 15036273586.66 8796081230.13 532670444.04 289816313.93 181531749.52 232289163.69 15750475780.22 9318186707.75
- 128 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(3) Description of performance obligations
The Group provides port service bonded logistics service and other services. These services are
obligations performed over a period of time. For port services as the handling time for containers
and bulk cargos is short the management believes that it is not necessary to recognize revenue
according to the progress towards the completion of contract and it is an appropriate method to
recognize the fulfilment of performance obligation and revenue upon the completion of the
service. For bonded logistics service and other services the customers evenly obtain and consume
the economic benefits from the Group's performance of contract meanwhile the charging rules as
agreed in the contract terms usually adopt daily/month/yearly basis. During the process of
rendering services the Group recognizes revenue using straight-line method. At the same time
the Group is primarily responsible for the above services and generally does not have any
commitment to the amount of money expected to be returned to the customer.Part of the Group's handling contracts are established with discount terms i.e. the customers
whose business volume reaches agreed level are granted with preferential charge rate or discount.At the end of the year as the business volume finally realized within the contract period is
uncertain the contract consideration is subject to variable factors. The management includes this
part of discount in other payables and provisions. At the end of the year the variable
considerations arising from sales discount are set out in Note (VIII) 31 (3) and Note (VIII) 39.
(4) Descriptions on allocation to remaining performance obligations
At the end of the year the amount of revenue corresponding to the performance obligations which
the Group has entered into a contract for but has not fulfilled or completely fulfilled mainly
included the contract liabilities of RMB 142080101.00 of which RMB 97512251.80 is
expected to be recognized as revenue in 2024; and RMB 44567849.20 is expected to be
recognized as revenue in 2025 and subsequent years.
49. Taxes and surcharges
Item 2023 2022
Property tax 75912651.85 63233633.53
Land use tax 37809190.33 36260260.97
City construction and maintenance tax 7891945.97 8456389.09
Education surcharges and local education surcharges 5953401.79 6253550.00
Stamp duty 5057465.35 8694943.46
Others (Note) 180373370.90 159350696.41
Total 312998026.19 282249473.46
Note: Others mainly represent the social contribution tax and tax on services borne by TCP a
subsidiary of the Company totalled BRL 120997445.84 (equivalent to RMB
170698356.69) for the year.
- 129 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
50. Administrative expenses
Item 2023 2022
Employee benefits 1297690387.03 1280394043.79
Depreciation expenses 75710865.79 79095275.09
Fees paid to agencies 63693285.42 80164840.55
Amortization of intangible assets 56233463.25 54493578.78
Others 283313153.89 270946998.30
Total 1776641155.38 1765094736.51
51. Research and development expenses
Item 2023 2022
Employee benefits 163593250.77 218783071.72
Direct materials and outsourced R&D 41115107.10 47737604.22
Depreciation and amortization 11500358.17 15813613.68
Others 7530356.03 5371889.08
Total 223739072.07 287706178.70
52. Financial expenses
Item 2023 2022
Interest expenses 2016181859.25 1960177578.36
Less: Interest income 497593921.36 469834098.05
Less: Capitalized interest expenses 45140959.39 30960097.84
Exchange differences 85519920.28 477004284.27
Interest expenses -Terminal management rights (Note) 206277567.64 222326056.63
Interest expenses on lease liabilities 60834329.16 73619268.64
Handling fee 5316520.88 21148526.03
Others 7718011.68 5232154.38
Total 1839113328.14 2258713672.42
Note: Details are set out in Note (VIII) 37.
53. Other income
Classification by nature 2023 2022
Business development subsidy 113983657.91 94355004.33
Transfer from allocation of deferred income (Note VIII 40) 47704466.26 45858732.41
Additional deduction of VAT 25604125.36 45179805.12
Special fund for operation 18439586.22 7385898.57
Steady post subsidies 1682015.15 5771198.38
Others 16975409.87 43097431.61
Total 224389260.77 241648070.42
- 130 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
54. Investment income
(1) Details of investment income:
Item 2023 2022
Income from long-term equity investments under equity method 5979007585.96 7185182148.75
Including: Income from long-term equity investments of
associates under equity method 5582402904.90 6765840426.95
Income from long-term equity investments of joint ventures
under equity method 396604681.06 419341721.80
Investment income from disposal of subsidiaries 216949902.47 -
Income from disposal of long-term equity investments (Losses
are marked with "-") 77647.56 -20508.06
Investment income from held-for-trading financial assets 91219728.19 152728622.47
Investment income from other non-current financial assets 41365576.62 39525241.71
Dividend income from investments in other equity instruments 20056500.00 240001.46
Total 6348676940.80 7377655506.33
(2) Details of income from long-term equity investments under equity method
Investee 2023 2022 Reason for changes
SIPG 3700844097.27 4762565562.93 Changes in net profit of investee
Ningbo Zhoushan 1049986813.85 351607511.90 Changes in net profit of investee
Terminal Link SAS 221059137.39 364965366.44 Changes in net profit of investee
Nanshan Group 214805574.66 206680217.04 Changes in net profit of investee
Euro-Asia Oceangate S.àr.l. 186208262.73 140072915.26 Changes in net profit of investee
Liaoning Port 151571456.52 144196061.13 Changes in net profit of investee
Shenzhen China Merchants Qianhai
Industrial Development Co. Ltd. 42538797.17 218696415.40 Changes in net profit of investee
Others 411993446.37 996398098.65 Changes in net profit of investee
Total 5979007585.96 7185182148.75
55. Gains (Losses) from changes in fair value
Source resulting in gains from changes in fair values (Losses
are marked with "-") 2023 2022
Held-for-trading financial assets 49197662.35 34417357.38
Other non-current financial assets 24155138.17 -163451007.49
Including: Financial assets at fair value through profit or loss 24155138.17 -163451007.49
Total 73352800.52 -129033650.11
56. Gains (Losses) from impairment of credit
Item 2023 2022
I. Losses from impairment of credit of accounts receivable -9285389.19 -5939952.37
II. Gains (Losses) from impairment of credit of other receivables
(Losses are marked with "-") 43872200.88 -217234842.93
III. Gains (Losses) from impairment of credit of long-term
receivables (Losses are marked with "-") 2697229.49 -298781.25
Total 37284041.18 -223473576.55
- 131 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
57. Losses from impairment of assets
Item 2023 2022
Losses from impairment of fixed assets -149923619.44 -6048776.05
Losses from impairment of intangible assets -41473147.97 -15537122.10
Gains (Losses) from decline in value of inventories (Losses are
marked with "-") 99456.13 -573122.05
Total -191297311.28 -22159020.20
58. Gains from disposal of assets
Amount included in
Item 2023 2022 non-recurring profitor loss for the current
year
Gains from disposal of non-current assets 36759532.61 55130095.52 36759532.61
Including: Gains from disposal of intangible
assets 35051791.80 57590483.04 35051791.80
Gains (Losses) from disposal of
fixed assets (Losses are marked 1713921.04 -1824719.58 1713921.04
with "-")
Other losses -6180.23 -635667.94 -6180.23
59. Non-operating income
Amount included in
Item 2023 2022 non-recurring profitor loss for the
current year
Compensation received for violation of
contracts 55396338.32 2930876.85 55396338.32
Management service fee and
directors' remuneration 11964440.07 8190857.40 11964440.07
Land rent deduction 7124609.25 6421113.49 7124609.25
Income from relocation compensation 5558730.17 6955000.00 5558730.17
Gains from retirement or damage of
non-current assets 1966904.66 3138573.24 1966904.66
Including: Gains from retirement
or damage of fixed assets 1765984.40 3138573.24 1765984.40
Exempted current accounts 197118.09 25091421.77 197118.09
Insurance claims 44269.64 341555.58 44269.64
Operation compensation (Note) - 213574591.16 -
Government grants - 1640553.77 -
Others 5049613.92 10989909.51 5049613.92
Total 87302024.12 279274452.77 87302024.12
Note: Refer to Note (VIII) 7.3 (2) for details.- 132 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
60. Non-operating expenses
Amount included in
Item 2023 2022 non-recurring profitor loss for the
current year
Litigation loss 42689603.93 20603558.61 42689603.93
Losses on retirement of non-current
assets 24548001.45 162620964.79 24548001.45
Including: Losses on retirement
or damage of fixed assets 22356701.04 34444521.73 22356701.04
Expenditure on public welfare
donations 11153329.51 21352071.53 11153329.51
Compensation and liquidated damages 1195947.89 11552735.44 1195947.89
Administrative fines and late fees 624038.01 - 624038.01
Others 16861919.93 4312924.31 16861919.93
Total 97072840.72 220442254.68 97072840.72
61. Borrowing costs
Item Capitalization rate Amount capitalized
Construction in progress —— ——
Phase I project for the stuffing and destuffing service area of
Baoman Port Area Zhanjiang Port 3.50% 10355373.62
Phase II project for the operation area terminal at Liaogeshan
Port 4.19% 10134790.48
Area Foshan Port
Installation project of bucket-wheel stacker reclaimer
Zhanjiang Port 3.50% 837359.25
Phase I expansion project for the container terminal at Baoman
Port Area Zhanjiang Port 3.30% 57750.00
Other non-current assets —— ——
Advances for channels 3.50% 23755686.04
Sub-total —— 45140959.39
Interest expenses included in profit or loss for the period
(Excludes interest expense on terminal operating rights and —— 1971040899.86lease liabilities）
Total —— 2016181859.25
62. Translation of foreign currencies
Item 2023
Exchange differences included in profit or loss for the period 85519920.28
Total 85519920.28
63. Income tax expenses
Item 2023 2022
Current income tax expenses 1129424872.77 871429455.95
Deferred income tax expenses 174154980.16 241530220.80
Total 1303579852.93 1112959676.75
- 133 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Income tax expenses - continued
Reconciliation of income tax expenses to the accounting profit is as follows:
Item 2023
Total profit 8799191938.69
Income tax expenses calculated at 25% 2199797984.67
Effect of non-deductible costs expenses and losses 272242876.02
Accrued income tax 384531164.82
Effect of deductible temporary differences and deductible losses
for which deferred tax assets are not recognized in the year 232164986.26
Effect of tax-free income (Note) -1152685934.75
Effect of tax incentives and changes in tax rate -461574423.95
Effect of different tax rates of subsidiaries operating in other jurisdictions -191471358.38
Effect of utilizing deductible losses for which deferred tax assets
were not recognized in prior period -47180168.14
Effect of adjustments to income tax of prior year -19545836.05
Others 87300562.43
Income tax expenses 1303579852.93
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 YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Assets with restricted ownership and use right
31/12/202331/12/2022
Item Gross carrying Carrying amount Type of restriction Status of restriction Gross carryingamount amount Carrying amount Type of restriction Status of restriction
Performance bonds
Cash and bank balances
(Note 1) 46535456.14 46535456.14 Restricted guarantee
Performance bonds
frozen funds etc. 9309145.94 9309145.94 Restricted guarantees
frozen funds for card
business of Bank of
Communications
Equity investment in
CICT (Note 2) - - — — —— 2115796097.99 2115796097.99 Pledge Pledge of equity
Equity investment in
TML (Note 2) - - — — —— 1047063416.30 1047063416.30 Pledge Pledge of equity
Fixed assets (Note 3) 330222332.58 291001239.59 Mortgage Mortgage borrowings 341870382.84 341870382.84 Mortgage Mortgage borrowings
Intangible assets
(Note 3) 457654685.65 457654685.65 Mortgage Mortgage borrowings 222040259.68 222040259.68 Mortgage Mortgage borrowings
Construction in progress Restricted
(Note 3) - - — — —— 4298598.50 4298598.50 construction in Mortgage borrowingsprogress
Total 834412474.37 795191381.38 —— —— 3740377901.25 3740377901.25 —— ——
Note 1: Details of restricted cash and bank balances are set out in Note (VIII) 1.Note 2: Details of pledged equity are set out in Note (VIII) 34.Note 3: Details of mortgage borrowings are set out in Note (VIII) 24 and Note (VIII) 34.- 135 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Provision for impairment of assets and provision for credit loss
Effect of Effect of translation
changes in the Provision for Reversal for Write-off and Transfer-out due
Other Other of financial
Item 31/12/2022 scope of the year the year charge-off for to sale in the
increases decreases
the year current year for the for the
statements 31/12/2023
consolidation year year denominated inforeign currencies
Provision for credit loss of accounts
receivable 94013267.44 -5662552.89 20976076.79 -11690687.60 - 8087700.00 - - - 1473959.35 91022363.09
Provision for credit loss of other receivables 1003685597.76 -581674.48 3495816.21 -47368017.09 -73074.00 - - - -2076917.54 957081730.86
Provision for decline in value of inventories 1326130.64 - - -99456.13 - - - - 7953.87 1234628.38
Provision for credit loss of long-term
receivables 3875396.19 - 921438.82 -3618668.31 - - - - - 1178166.70
Provision for impairment of long-term equity
investments 357168270.27 - - - - - - - 5165805.49 362334075.76
Provision for impairment of fixed assets 63574868.76 - 149923619.44 - - - - - 5994.88 213504483.08
Provision for impairment of intangible assets 15537122.10 - 41473147.97 - - - - - - 57010270.07
Provision for impairment of goodwill 970663044.33 - - - - - - - - 970663044.33
Total 2509843697.49 -6244227.37 216790099.23 -62776829.13 -8160774.00 - - - 4576796.05 2654028762.27
- 136 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Other comprehensive income net of tax
Details are set out in Note (VIII) 44.
67. Items in cash flow statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Item 2023 2022
Interest income 316807536.02 258843106.76
Government grants 163169407.30 146183117.33
Guarantees and deposits 59967562.07 56548699.29
Insurance indemnities 11868450.00 58668674.41
Rentals 11677109.86 6633711.38
Others 364073953.84 614917616.16
Total 927564019.09 1141794925.33
Other cash payments relating to operating activities
Item 2023 2022
Advance payment 191928420.03 328830785.30
Operating expenses such as operating costs
and administrative expenses etc. 167200604.70 136317839.62
Guarantees and deposits 59616680.63 47134870.60
Rentals 26007218.14 22559158.93
Harbor dues on cargo 7279452.46 14619372.24
Port charges 5743216.19 5422920.14
Others 395451467.06 471440206.57
Total 853227059.21 1026325153.40
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item 2023 2022
Recovered structured deposits 28397000000.00 40874000000.00
Recovered lending(Note 1) 2965681743.10 -
Dividends received 2186696975.69 2239605794.55
Funds for disposal of subsidiaries received (Note 2) 1683385533.43 -
Total 35232764252.22 43113605794.55
Note 1: It represents the recovery of RMB 2965681743.10 lent to Terminal Link SAS.Note 2: The funds received for disposal of subsidiaries during the year represent the amount
received for disposal of Ningbo Daxie.- 137 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Items in cash flow statement - continued
(2) Cash relating to investing activities - continued
Cash payments relating to significant investing activities
Item 2023 2022
Purchase of structured deposits 29967000000.00 36954000000.00
Investment funds - 17549460113.25
Total 29967000000.00 54503460113.25
Other cash receipts relating to investing activities
Item 2023 2022
Recovered lending by Terminal Link SAS 2965681743.10 -
Interest on advances for the project 177940904.60 169844015.81
Net cash receipts from acquisition of subsidiaries
and other business units - 74295900.85
Recovered principal for the advances of the project - 45535614.18
Others 21332655.57 5388978.50
Total 3164955303.27 295064509.34
Other cash payments relating to investing activities
Item 2023 2022
Performance guarantees for project development 39087797.69 -
Disposal of equity of subsidiaries 35267442.35 -
Payment of taxes on land acquisition and reserve by An
Tong Jie Terminal Warehouse Service (Shenzhen) Co. Ltd. - 947426040.54
("ATJ")
Others 8308063.29 7376441.76
Total 82663303.33 954802482.30
(3) Cash relating to financing activities
Other cash receipts relating to financing activities
Item 2023 2022
Sale and leaseback proceeds 328026212.50 50000000.00
Others 6728017.13 6303169.80
Total 334754229.63 56303169.80
- 138 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Items in cash flow statement - continued
(3) Cash relating to financing activities - continued
Other cash payments relating to financing activities
Item 2023 2022
Repayment of perpetual bonds 4222148460.84 -
Payment for the Company's acquisition of minority interests
of CM Port 872848916.41 660552076.54
Lease expenses paid 829455300.35 422373905.31
Payment for the Company's acquisition of minority interests
of Oasis King International Limited 818659106.04 -
Payment for the Company's acquisition of minority interests
of CM International Tech 109901500.00 -
Payment for non-public shares issued by the Company - 7778570.52
Others 14080546.68 33412187.98
Total 6867093830.32 1124116740.35
Changes in liabilities arising from financing activities
Increase for the year Decrease for the year
Item 31/12/2022 Cash changes Non-cash Cash changes Non-cash 31/12/2023changes changes
Short-term borrowings 7164338366.18 18324960509.40 531121750.39 10306375337.00 - 15714045288.97
Long-term borrowings 12390099177.85 11091911738.15 - 4325439446.26 929027515.03 18227543954.71
Non-current liabilities
due within one year 11641223688.95 - 7930642448.33 12695530031.31 58931816.72 6817404289.25
Bonds payable 19088293099.02 - 199215465.13 - 5000000000.00 14287508564.15
Lease liabilities 948350914.04 - 404265256.81 114686862.61 236757101.32 1001172206.92
Dividends payable 92374921.29 - 2924344643.64 2880173694.97 24648655.69 111897214.27
Other current liabilities 3017713424.64 6328026212.50 77180966.07 7415730466.23 - 2007190136.98
Total 54342393591.97 35744898460.05 12066770530.37 37737935838.38 6249365088.76 58166761655.25
(4) The Company has no cash flows presented on a net basis
(5) 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 YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Supplementary information 2023 2022 (Restated)
1. Reconciliation of net profit to cash flows from operating activities: —— ——
Net profit 7495612085.76 8231903300.27
Add: Provision for impairment of assets 191297311.28 22159020.20
Provision for impairment of credit -37284041.18 223473576.55
Depreciation of fixed assets 1983548731.36 2015080231.04
Depreciation of investment properties 182833076.22 184276397.36
Depreciation of right-of-use assets 357502960.45 349846619.98
Amortization of intangible assets 686879674.72 663429174.32
Amortization of long-term prepaid expenses 92971461.67 84874394.19
Losses (Gains) from disposal of fixed assets intangible assets
and other long-term assets (Losses are marked with "-") -36759532.61 -55130095.52
Losses on retirement of fixed assets intangible assets
and other long-term assets 22581096.79 159482391.55
Losses (Gains) from changes in fair value (Losses are marked
with "-") -73352800.52 129033650.11
Financial expenses 2185350735.70 2532320466.47
Investment loss (income) (Losses are marked with "-") -6348676940.80 -7377655506.33
Decrease in deferred tax assets 19435343.92 20145903.44
Increase in deferred tax liabilities 154719636.24 221384317.36
Decrease (Increase) in inventories (Losses are marked with "-") 6316130.87 -30798761.65
Decrease (Increase) in operating receivables (Losses are
marked with "-") -132511582.62 -245987914.80
Increase (Decrease) in operating payables (Losses are marked
with "-") -170856712.08 -207459774.19
Net cash flows from operating activities 6579606635.17 6920377390.35
2. Significant investing and financing activities that do not involve
cash receipts and payments: —— ——
Conversion of debt into capital - -
Convertible bonds due within one year - -
3. Net changes in cash and cash equivalents: ——
Closing balance of cash 16018613631.10 13567309471.62
Less: Opening balance of cash 13567309471.62 12727355238.36
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 2451304159.48 839954233.26
(2) Cash and cash equivalents
Item 31/12/2023 31/12/2022
I. Cash 16018613631.10 13567309471.62
Including: Cash on hand 974692.93 726960.10
Bank deposits available for payment at any time 16009954475.85 13045336190.09
Other monetary funds available for payment at any time 7684462.32 521246321.43
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the year 16018613631.10 13567309471.62
- 140 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Supplementary information to the cash flow statement - continued
(3) Net cash receipts from disposal of subsidiaries
Amount
Cash or cash equivalents received in the current year from disposal of subsidiaries
in the current year 1797936550.00
Including: Ningbo Daxie 1714909050.00
Dalian Port Logistics Network Co. Ltd. 63716000.00
Yingkou Gangxin Technology Co. Ltd. 19311500.00
Less: Cash and cash equivalents held by subsidiaries on the date when control is lost 149818458.92
Including: Ningbo Daxie 31523516.57
Dalian Port Logistics Network Co. Ltd. 86068813.26
Yingkou Gangxin Technology Co. Ltd. 32226129.09
Add: Cash or cash equivalents received in the current year from disposal of
subsidiaries in prior periods -
Including: Ningbo Daxie -
Dalian Port Logistics Network Co. Ltd. -
Yingkou Gangxin Technology Co. Ltd. -
Net cash receipts from disposal of subsidiaries 1648118091.08
(4) The Company has no items with restricted use but are still presented as cash and cash
equivalents.
(5) Cash and bank balances not classified as cash and cash equivalents
Items 2023 2022 Reason
Restricted guarantees 44697370.16 9297145.94 Restricted scope of use
Interest receivable from bank deposits 14497091.00 16126969.60 Not actually received
Funds frozen for litigation 1826085.98 - Not available forwithdrawal at any time
Guarantees frozen for ETC 12000.00 12000.00 Not available forwithdrawal at any time
Interest on time deposit - 23183152.24 Not actually received
Total 61032547.14 48619267.78 /
- 141 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Foreign currency monetary items
Item Closing balance in foreigncurrency Exchange rate Closing balance in RMB
Cash and bank balances 2988104992.31
Including: HKD 19647056.77 0.9062 17804555.79
USD 317185988.33 7.0827 2246533199.54
RMB 408295641.99 1.0000 408295641.99
EUR 40140420.78 7.8592 315471594.99
Accounts receivable 173075521.17
Including: HKD 512979.31 0.9062 464872.11
USD 1423085.41 7.0827 10079287.03
EUR 20680395.21 7.8592 162531362.03
Other receivables 799457535.30
Including: HKD 524271214.69 0.9062 475105060.18
USD 1343324.84 7.0827 9514366.84
EUR 9691705.64 7.8592 76169052.97
RMB 238669055.31 1.0000 238669055.31
Long-term receivables 282209825.00
Including: EUR 25995028.12 7.8592 204300125.00
Short-term borrowings 6885485000.00
USD 550000000.00 7.0827 3895485000.00
RMB 2990000000.00 1.0000 2990000000.00
Accounts payable 40104170.70
Including: HKD 1173832.48 0.9062 1063750.47
USD 44617.49 7.0827 316012.30
EUR 4927270.96 7.8592 38724407.93
Other payables 668048202.56
Including: HKD 32251917.27 0.9062 29227332.47
USD 39743432.26 7.0827 281490807.67
EUR 13924592.03 7.8592 109436153.68
RMB 247893908.74 1.0000 247893908.74
Non-current liabilities due
within one year 175706225.87
Including: USD 23489155.23 7.0827 166366639.76
RMB 9339586.11 1.0000 9339586.11
Long-term borrowings 4656000000.00
Including: RMB 4656000000.00 1.0000 4656000000.00
Bonds payable 11287508564.15
Including: USD 1593673113.95 7.0827 11287508564.15
Long-term payables 9391615.50
Including: HKD 2366680.97 0.9062 2144733.63
USD 1023180.69 7.0827 7246881.87
- 142 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
70. Leases
(1) Lessor under operating lease
Item Amount
I. Revenue ——
Lease income 288005772.42
Including: Income related to variable lease payments that are not included
in lease receipts -
II. Undiscounted lease receipts received after the balance sheet date ——
1st year 206915451.16
2nd year 144032701.64
3rd year 118298471.55
4th year 83869818.08
5th year 45923854.38
Over 5 years 121551555.20
Note: The operating leases where the Group acts as the lessor are related to port and terminal
facilities machinery and equipment vehicles land and buildings with lease terms ranging
from 1 month to 50 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 60834329.16
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 55635496.52
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 2564521.41
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 11364199.51
Total cash outflows relating to leases 837856182.83
Income (loss) from sale and leaseback transactions 61743409.02
Cash inflows from sale and leaseback transactions 328026212.50
Cash outflows from sale and leaseback transactions 520496584.08
Others -
- 143 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
70. Leases - continued
(2) Lessee - continued
Sale and leaseback transactions and basis for determination:
Note: 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 2023 2022
Employee benefits 166273348.83 222334684.01
Direct materials and outsourced R&D 78769899.84 57140031.23
Depreciation and amortisation 11654856.90 16295546.56
Others 15963664.54 23694839.98
Total 272661770.11 319465101.78
Including: R&D expenditure recorded as expenses 223739072.07 287706178.70
R&D expenditure capitalised 48922698.04 31758923.08
- 144 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IX) R&D EXPENDITURE - continued
2. Development expenditure for R&D projects that qualify for capitalisation
Increase Decrease
Item 31/12/2022 Internaldevelopment Recognised as fixed Recognised as Transferred to profit 31/12/2023
expenditure assets intangible assets or loss for the period
Eport - 30150532.71 - - - 30150532.71
Other R&D projects 17412196.16 19364847.34 15065485.70 279255.32 592682.01 20839620.47
Total 17412196.16 49515380.05 15065485.70 279255.32 592682.01 50990153.18
(X) CHANGES IN SCOPE OF CONSOLIDATION
1. Disposal of subsidiaries
Loss of control over subsidiaries
Amount of other
Disposal Disposal Disposal Difference between disposal Proportion of comprehensive income
Name of the subsidiary Point in time of consideration at proportion at approach at
Determination basis consideration and shares of remaining equity related to equity
losing control point in time of losing point in time of point in time of for point in time of corresponding net assets of at the date of investments of the original
control losing control (%) losing control losing control the subsidiary at losing control subsidiary transferred toconsolidated level (%) investment gains or losses
or retained earnings
Completion of
Ningbo Daxie August 2023 1845000000.00 45.00 Transfer of equity transaction and transfer 205336602.02 - -
of control
Dalian Port Logistics Network Completion of
Co. Ltd. November 2023 63716000.00 79.03 Transfer of equity transaction and transfer 19694127.20 - -of control
Completion of
Gangxin Technology November 2023 19311500.00 100.00 Transfer of equity transaction and transfer -8080826.75 - -
of control
- 145 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
business incorporation business unless otherwise (%)
Acquisition method
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 Wharf Holdings (Hong Kong) Ltd.(Wharf Holdings Hong Kong) HK China HK China
Investment
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 support Business combination involvingChina China services 28820.00 100.00 - enterprises under common control
Shenzhen Chiwan Port Development Co. Ltd. Shenzhen Shenzhen Logistics support Business combination involvingChina China services 10000.00 100.00 - 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 support Business combination involvingChina China services 2400.00 100.00 - 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 0.38 48.90 Business combination involvingholding 48730938800 enterprises under common control
China Merchants Bonded Logistics Co. Ltd. Shenzhen Shenzhen Logistics support 70000.00 40.00 60.00 Business combination involvingChina China services enterprises under common control
CM International Tech Shenzhen ShenzhenChina China IT service 8784.82 56.26 43.74
Business combination involving
enterprises under common control
China Merchants International (China) Investment Shenzhen Shenzhen Investment Business combination involving
Co. Ltd. China China holding USD67400000 - 100.00 enterprises under common control
China Merchants International Container Terminal Qingdao Logistics support Business combination involving
(Qingdao) Co. Ltd. China Qingdao China services USD 206300000 - 100.00 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 support 55000.00 - 100.00 Business combination involvingChina China services enterprises under common control
Engineering
Shenzhen Haiqin Project Management Co. Ltd. Shenzhen Shenzhen supervision 1000.00 - 100.00 Business combination involvingChina China service enterprises under common control
ATJ Shenzhen Shenzhen
Preparation for Business combination involving
China China the warehousing HKD 100000000 - 100.00project enterprises under common control
Shenzhen Shenzhen Preparation forASJ the warehousing HKD 100000000 - 100.00 Business combination involvingChina China project enterprises under common control
China Merchants International Terminal (Qingdao) Qingdao
Co. Ltd. China Qingdao China
Logistics support
services USD 44000000 - 90.10
Business combination involving
enterprises under common control
CICT Sri Lanka Sri Lanka Logistics support USD 150000100 - 85.00 Business combination involvingservices enterprises under common control
Magang Godown & Wharf Shenzhen Shenzhen Logistics support Business combination involvingChina China services 33500.00 - 100.00 enterprises under common control
Shenzhen Mawan Port Services Co. Ltd. Shenzhen Shenzhen Logistics supportChina China services 20000.00 - 100.00
Business combination involving
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 116700.00 - 60.00
Business combination involving
enterprises under common control
Zhangzhou Investment Promotion Bureau
Xiamenwan Port Affairs Co. Ltd. ("Xiamenwan Zhangzhou Zhangzhou Logistics support 44450.00 - 31.00 Business combination involving
Port Affairs") (Note 2) China China services enterprises under common control
Shekou Container Terminals Ltd. Shenzhen Shenzhen Logistics support HKD 618201200 - 100.00 Business combination involvingChina China services 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
- 146 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 Registered capital Shareholding ratio
Name of the subsidiary place of Place of Nature of (RMB'0000 of the Companyincorporation business unless otherwise (%) Acquisition methodbusiness specified) Direct Indirect
Shenzhen Haixing Shenzhen Shenzhen Logistics support Business combination involvingChina China services 53072.92 - 67.00 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 USD 100.00 - 100.00 Business combination involvingholding enterprises under common control
Lome Container Terminal S.A. (Note 3) Republic of Republic of Logistics support XOF 200000000 - 100.00 Business combination involvingTogo Togo services 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) Sri Lanka Sri Lanka Logistics support USD Business combination involvingLimited services 1145480000 - 85.00 enterprises under common control
Shantou port Shantou Shantou China Logistics support 12500.00 - 60.00 Business combination involvingChina services enterprises under common control
Shenzhen Jinyu Rongtai Investment Development Shenzhen Shenzhen Property lease 80000.00 - 100.00 Business combination involvingCo. Ltd. China China etc. enterprises under common control
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 InvestmentChina China consulting 4000.00 - 75.00
Business combination involving
enterprises under common control
Shenzhen Lianda Tugboat Co. Ltd. Shenzhen Shenzhen Logistics support 200.00 - 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 Business combination involvingholding USD 107620000 - 77.45 enterprises under common control
Kong Rise Development Limited HK China HK China Investment USD 107620000 - 100.00 Business combination involvingholding enterprises under common control
TCP Brazil Brazil Logistics support Business combination not involvingservices BRL 68851600 - 100.00 enterprises under common control
Direcet Achieve Investments Limited HK China HK China Investment USD 814781300 - 100.00 Business combination involvingholding 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 60000.00 - 80.00 Business combination not involvingCo. Ltd. China China services enterprises under common control
Zhanjiang Port Petrochemical Terminal Co. Ltd. Zhanjiang Zhanjiang Logistics support
(Note 4) China China services 18000.00 - 50.00
Business combination not involving
enterprises under common control
China Ocean Shipping Tally Co. Ltd. Zhanjiang Zhanjiang Zhanjiang Logistics support 300.00 - 84.00 Business combination not involvingChina China services enterprises under common control
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
Co. Ltd. China China services 5000.00 - 100.00 enterprises under common control
Zhanjiang Port Logistics Zhanjiang Zhanjiang Logistics support 10000.00 - 100.00 Business combination not involvingChina China services 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 Shantou China Logistics supportChina 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
Malai Warehousing (Shenzhen) Co. Ltd Shenzhen Shenzhen Owning China HKDChina China Qianhai property 1600000000 - 100.00
Business combination involving
enterprises under common control
Ports Development (Hong Kong) Limited Hong Kong Hong Kong InvestmentChina China holding 2768291.56 100.00 - Established through investment
Property
Shunkong Port Foshan China Foshan China development and 34489.79 51.00 - Asset acquisition
management
South Asia Trade and Logistics Center Logistics support USD
Co. Ltd.("SACL") ( Note 5) Sri Lanka Sri Lanka services 37140000 - 70.00 Established through investment
- 147 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
Note 1: On 19 June 2018 the Company and China Merchants Group (Hong Kong) Co. Ltd.("CMHK") entered into an "Agreement of Concerted Action on China Merchants Port
Holdings Company Limited". According to the agreement CMHK unconditionally
keeps consistent with the Company when voting for the matters discussed at the general
shareholders' meeting of CM Port in respect of its voting power of CM Port as entrusted
and performs the voting as per the Company's opinion. In March 2022 the Company
transferred its 43.00% equity contribution in China Merchants Port Holdings Company
Limited to the wholly-owned subsidiary Ports Development (Hong Kong) Co. Ltd.In June and October 2023 CM Port respectively distributed 2022 dividends and 2023
interim dividends to shareholders. The shareholders may select to receive the dividends
all in cash or shares or receive the dividends part in cash and part in new shares. The
Company and Ports Development (Hong Kong) Co. Ltd. select to receive all dividends
attributable to their shareholdings in CM Port in the form of shares and CMHK selects
to receive the 2022 dividends in cash and the 2023 interim dividends attributable to its
shareholding in CM Port in the form of shares. In 2023 Ports Development (Hong Kong)
Co. Ltd. acquired 94702000 ordinary shares of CM Port from the secondary market.Upon the completion of above distribution and the transaction the proportion of the
ordinary shares of CM Port held by the Group to the total issued ordinary shares of CM
Port was changed from 45.69% to 49.28% while the proportion of the ordinary shares of
CM Port held by CMHK to the total issued ordinary shares of CM Port was changed
from 22.42% to 21.85%. Therefore the Company has 71.13% voting power on CM Port
in total and is able to exercise control over CM Port.Note 2: The Group and China Merchants Zhangzhou Development Zone Co. Ltd. entered into
an "Equity Custody Agreement" according to which China Merchants Zhangzhou
Development Zone Co. Ltd. entrusted its 29% equity of ZCMG to the Group for
operation and management. Therefore the Group has 60% voting power of ZCMG and
includes it in the scope of consolidation of the consolidated financial statements.Note 3: The Group is entitled to the nomination of most members of the executive commission
and has control over Lome Container Terminal S.A. Therefore the Group includes it in
the scope of consolidation of the consolidated financial statements.Note 4: The Group holds 50% equity interest in Zhanjiang Port Petrochemical Terminal Co. Ltd.According to the agreement the Group has control over Zhanjiang Port Petrochemical
Terminal Co. Ltd. and therefore includes it in the scope of consolidation of the
consolidated financial statements.Note 5: SACL is a limited liability company established by CM Port in Sri Lanka on 21 April
2023.
- 148 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Significant non-wholly-owned subsidiaries
Proportion of Profit or loss Dividends distributed Balance of
Name of the ownership interest attributable to minority to minority minority interests
subsidiary held by the minority shareholders in the shareholders in the at the end of the
shareholders (%) current year current year year
CM Port 50.72 3790168766.29 1716130041.14 61593070426.41
- 149 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 31/12/2023 31/12/2022
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 15917026132.04 135313877243.36 151230903375.40 18457977486.53 27802818508.45 46260795994.98 12837082258.94 137558098661.09 150395180920.03 18761895893.60 25152356977.50 43914252871.10
Name of 2023 2022
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 10503277811.44 6466697575.11 7608794449.88 4852710141.52 10926649847.41 7771272424.87 9468881467.49 5181954271.51
- 150 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
2. Transactions resulting from changes in ownership interests in subsidiaries without
losing control over the subsidiaries
(1) Description of changes in ownership interests in subsidiaries
During the year the Group's ownership interests in CM Port is changed from 45.69% to 49.28%.Details are set out in Note (XI) 1 (1).During the year the Group's ownership interests in CM International Tech is changed from
56.92% to 100%.
During the year the Group's ownership interests in Oasis King International Limited is changed
from 70.00% to 100%.
(2) Effect of the transactions on minority interests and equity attributable to owners of the
Company
CM Port CM International
Oasis King
Tech International TotalLimited
Acquisition cost
- Cash 880259262.73 109901500.00 818659106.04 1808819868.77
- Fair value of non-cash assets 1398559890.07 - - 1398559890.07
Total acquisition cost 2278819152.80 109901500.00 818659106.04 3207379758.84
Less: Share of net assets of subsidiaries
calculated based on the proportion of 4547937480.41 82775475.48 819100518.20 5449813474.09
equity acquired
Difference -2269118327.61 27126024.52 -441412.16 -2242433715.25
Including: Adjustment to capital reserve 2269118327.61 -27126024.52 441412.16 2242433715.25
Adjustment to surplus reserve - - - -
Adjustment to unappropriated profit - - - -
3. Interests in joint ventures and associates
(1) Significant joint ventures or associates
Proportion of ownership
Principal place Place of interests held by the Group Accounting treatmentInvestee of business registration Nature of business (%) of investments in
Direct Indirect associates
Associate
SIPG Shanghai PRC Shanghai PRC Port and containerterminal business - 28.05 Equity method
Ningbo Zhoushan Ningbo PRC Ningbo PRC Port and containerterminal business 20.98 2.10 Equity method
- 151 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate
SIPG
31/12/2023/31/12/2022/
20232022
Current assets 53049570240.87 46525054810.02
Including: Cash and cash equivalents 35721676040.14 26843326028.04
Non-current assets 150525944932.10 135276650788.84
Total assets 203575515172.97 181801705598.86
Current liabilities 22835359505.98 25863891496.14
Non-current liabilities 44553743360.00 34770765671.21
Total liabilities 67389102865.98 60634657167.35
Net assets 136186412306.99 121167048431.51
Minority interests 13010972126.11 8839640972.54
Net assets attributable to owners of the Company 123175440180.88 112327407458.97
Share of net assets calculated based on the proportion of
ownership interests 34550710970.74 31507837792.24
Adjustments
- Goodwill 2427508397.27 2427508397.27
- Others 234665770.76 236552011.66
Carrying amount of equity investments in associates 37212885138.77 34171898201.17
Fair value of publicly quoted equity investments in associates 32003432940.50 34877210592.30
Operating income 37551570005.56 37279806723.63
Net profit 14007787452.35 17910112648.83
Other comprehensive income -58126233.99 -526788637.24
Total comprehensive income 13949661218.36 17383324011.59
Dividends received from associates in the current year 914383798.30 1240688187.97
Ningbo Zhoushan
31/12/2023
Current assets 19223549000.00
Including: Cash and cash equivalents 9635337000.00
Non-current assets 93105852000.00
Total assets 112329401000.00
Current liabilities 22201633000.00
Non-current liabilities 9429720000.00
Total liabilities 31631353000.00
Net assets 80698048000.00
Minority interests 5828457000.00
Net assets attributable to owners of the Company 74869591000.00
Share of net assets calculated based on the proportion of
ownership interests 17279901602.80
Adjustments
- Goodwill 1231115756.87
- Others 120136754.64
Carrying amount of equity investments in associates 18631154114.31
Fair value of publicly quoted equity investments in associates 15982528312.20
Operating income 25993200000.00
Net profit 5156174000.00
Other comprehensive income 76072000.00
Total comprehensive income 5232246000.00
Dividends received from associates in the current year 390875794.33
- 152 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate - continued
Note: Ningbo Zhoushan has become an important associate this year and only disclosed
financial data for this year Ningbo Zhoushan's financial data are accurate to the nearest
RMB 1000.00.
5. Summarized financial information of insignificant associates and joint ventures
Item 31/12/2023
31/12/2022
/2023 / 2022(Restated)
Joint ventures: —— ——
Total carrying amount of investments 8957993335.22 9716793055.72
Aggregate of following items calculated based on
the proportion of ownership interest — — ——
- Net profit 396604681.06 419341721.80
- Other comprehensive income -879272391.47 175421702.38
- Total comprehensive income -482667710.41 594763424.18
Associates: —— ——
Total carrying amount of investments 31864085187.97 48475602662.16
Aggregate of following items calculated based on
the proportion of ownership interest — — ——
- Net profit 831571993.78 2003274864.02
- Other comprehensive income 138977006.59 -300868120.56
- Total comprehensive income 970549000.37 1702406743.46
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.(XII) GOVERNMENT GRANTS
1. Government grants recognised as receivables at the end of current year
Balance of receivables as at the end of current year 2181470.00
2. Liabilities involving government grants
New Amount Amount
Item 31/12/2022 government included innon-operating included in
Other 31/12/2023 Related to
grants other income changes assets/incomeincome
Deferred income 1031273189.74 41207834.25 - 47704466.26 - 1024776557.73 Related to assets
Total 1031273189.74 41207834.25 - 47704466.26 - 1024776557.73 ——
- 153 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS - continued
3. Government grants included in profit or loss
Item 2023 2022
Business development subsidy 113983657.91 94355004.33
Special fund for operation 18439586.22 7385898.57
Steady post subsidies 1682015.15 5771198.38
Others 15133244.06 42331663.35
Total 149238503.34 149843764.63
(XIII) RISKS ASSOCIATEDWITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances held-for-trading
financial assets notes receivable accounts receivable receivables financing other receivables
long-term receivables other non-current financial assets borrowings notes payable accounts
payable other payables other current liabilities non-current liabilities due within one year bonds
payable long-term payables other non-current liabilities etc. Details of these financial
instruments are disclosed in Note (VIII). The risks associated with these financial instruments and
the policies on how to mitigate these risks are set out below. Management of the Group manages
and monitors these exposures to ensure the risks are monitored at a certain level.The Group adopts sensitivity analysis technique to analyse how the profit and loss for the period
and shareholders' equity would have been affected by reasonably possible changes in the relevant
risk variables. As it is unlikely that risk variables will change in an isolated manner and the
interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable the following are based on the assumption that
the change in each risk variable is on a stand-alone basis.
1. Risk management objectives policies and procedures and changes for the period
The Group's risk management objectives are to achieve a proper balance between risks and yield
minimise the adverse impacts of risks on the Group's operation performance and maximise the
benefits of the shareholders and other stakeholders. Based on these risk management objectives
the Group's basic risk management strategy is to identify and analyse the Group's exposure to
various risks establish an appropriate maximum tolerance to risk implement risk management
and monitors regularly and effectively these exposures to ensure the risks are monitored at a
certain level.- 154 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 and EUR. Except
for part of the purchases and sales the Group's other principal activities are denominated and
settled in RMB. As at 31 December 2023 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 31/12/2023 31/12/2022
Cash and bank balances 487182682.32 799833569.05
Accounts receivable 10544159.14 29766083.42
Other receivables 339131902.71 360531571.16
Long-term receivables 204300125.00 -
Short-term borrowings 2990000000.00 4090000000.00
Accounts payable 1379762.77 2372883.60
Other payables 300187007.82 246131122.92
Non-current liabilities due within one year 9339586.11 670000000.00
Long-term borrowings 4656000000.00 3669000000.00
Long-term payables 9391615.50 -
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures. According to the current risk exposure and judgment on the exchange
rate movements the management considers it is unlikely that the exchange rate changes in the
next year will result in significant loss to the Group.- 155 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and
hedges of a net investment in a foreign operation are highly effective. On the basis of the above
assumption where all other variables are held constant the reasonably possible changes in the
foreign exchange rate may have the following pre-tax effect on the profit or loss for the period
and shareholders' equity:
20232022
Item Changes in exchange rate Effect Effect on Effect Effect on
on profit shareholders' on profit shareholders'equity equity
All foreign currencies 5% increase against RMB -362713439.88 -362713439.88 -383846068.61 -383846068.61
All foreign currencies 5% decrease against RMB 362713439.88 362713439.88 383846068.61 383846068.61
All foreign currencies 5% increase against USD -18083083.38 -18083083.38 5221127.37 5221127.37
All foreign currencies 5% decrease against USD 18083083.38 18083083.38 -5221127.37 -5221127.37
All foreign currencies 5% increase against HKD 23046933.58 23046933.58 3837255.04 3837255.04
All foreign currencies 5% decrease against HKD -23046933.58 -23046933.58 -3837255.04 -3837255.04
All foreign currencies 5% increase against EUR(including FCFA) 11592634.53 11592634.53 419047.06 419047.06
All foreign currencies 5% decrease against EUR(including FCFA) -11592634.53 -11592634.53 - 419047.06 - 419047.06
1.1.2 Interest rate risk - changes in cash flows
Risk of changes in cash flows of financial instruments arising from interest rate changes is mainly
related to bank loans with floating interest rate. (See Note (VIII) 24 and Note (VIII) 34). The
Group continuously and closely monitors the impact of interest rate changes on the Group's
interest rate risk. The Group's policy is to maintain these borrowings at floating rates. Presently
the Group has no arrangement such as interest rate swaps.- 156 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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:
20232022
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 -342406182.88 -342406182.88 -207621560.74 -207621560.74
Short-term borrowings and
long-term borrowings 1% decrease 342406182.88 342406182.88 207621560.74 207621560.74
1.2 Credit risk
As at 31 December 2023 the Group's maximum exposure to credit risk which will cause a
financial loss to the Group due to failure to discharge an obligation by the counterparties and
financial guarantees issued by the Group (without considering the available collateral or other
credit enhancements) is arising from cash and bank balances (Note (VIII) 1) notes receivable
(Note (VIII) 3) accounts receivable (Note (VIII) 4) other receivables (Note (VIII) 7) long-term
receivables (Note (VIII) 11) etc. At the balance sheet date the carrying amounts of the Group's
financial assets represent its maximum exposure to credit risk. In addition the Group's maximum
credit risk exposure to credit losses includes the amount of financial guarantee contract as
disclosed in Note (XVII) 2 "Contingencies".- 157 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 credit
loss is made for relevant financial assets. In this regard the management of the Group considers
that the Group's credit risk is significantly reduced.The credit risk on cash and bank balances is limited because they are deposited with financial
institutions with high credit ratings.The Group has no significant concentration of credit risk with exposure spread over a number of
counterparties and customers.The Group has adopted a policy to ensure that all sales customers have good credit records.
1.3 Liquidity risk
In the management of the liquidity risk the Group monitors and maintains a level of cash and
cash equivalents deemed adequate by the management to finance the Group's operations and
mitigate the effects of fluctuations in cash flows. The management monitors the utilisation of
bank borrowings and ensures compliance with loan covenants.As at 31 December 2023 the Group had total current liabilities in excess of total current assets of
RMB 5612418164.44. As at 31 December 2023 the Group had available and unused line of
credit and bonds amounting to RMB 69439268355.68 which is greater than the balance of the
net current liabilities. The Group can obtain financial support from the available line of credit and
bonds when needed. Therefore the Group's management believes that the Group has no
significant liquidity risk.The following is the maturity analysis for financial assets and financial liabilities held by the
Group which is based on undiscounted remaining contractual obligations:
Item Carrying amount Gross amount Within 1 year 1 to 5 years Over 5 years
Short-term borrowings 15714045288.97 16173813350.97 16173813350.97 - -
Notes payable 73461165.82 73461165.82 73461165.82 - -
Accounts payable 691765137.25 691765137.25 691765137.25 - -
Other payables 1654622170.02 1654622170.02 1654622170.02 - -
Non-current liabilities due
within one year 6745613464.04 7946167971.57 7946167971.57 - -
Other current liabilities 2143842534.53 2153429383.85 2153429383.85 - -
Long-term borrowings 18227543954.71 19240642199.11 - 17013554984.11 2227087215.00
Bonds payable 14287508564.15 15590487807.53 - 15590487807.53 -
Lease liabilities 1001172206.92 2484068796.64 - 282009548.65 2202059247.99
Long-term payables 3817255549.15 6096325412.76 - 826260924.50 5270064488.26
Related-party guarantees 347437758.18 347437758.18 114527259.00 156254811.86 76655687.32
- 158 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Fair value at 31/12/2023
Item Level 1 Level 2 Level 3Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value
Held-for-trading financial assets - 4568806108.84 - 4568806108.84
Receivables financing - - 2001669.46 2001669.46
Investments in other equity instruments - - 157461648.16 157461648.16
Other non-current financial assets 850222729.23 - 27353713.60 877576442.83
Total assets continuously measured
at fair value 850222729.23 4568806108.84 186817031.22 5605845869.29
2. Basis for determining the market price of items continuously measured at level 1 fair
value
The market prices of held-for-trading financial assets and other non-current financial assets are
determined based on the closing price of the equity instruments at Stock Exchange at 31
December 2023.
3. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Item Fair value at31/12/2023 Valuation techniques Inputs
Held-for-trading financial assets 4568806108.84 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.
4. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 3 fair value
Item Fair value at31/12/2023 Valuation techniques Inputs
Receivables financing 2001669.46 Cash flow discounting Discount rate
Investments in other equity
instruments 157461648.16 Net worth method Carrying amount
Other non-current financial assets 737436.89 Net worth method Carrying amount
Other non-current financial assets 26616276.71 Listed company comparison approach Share price
The fair value of non-listed equity instruments included in equity instruments at fair value through
profit or loss or other comprehensive income is determined using the valuation techniques such as
net worth method listed company comparison approach etc.- 159 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE - continued
5. Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and liabilities not measured at fair value mainly include notes receivable
accounts receivable other receivables short-term borrowings notes payable accounts payable
other payables long-term borrowings bonds payable lease liabilities 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.- 160 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of
Name of the Company Related party Type of the entity Place of
Proportion of voting
relationship registration Nature of business Issued share capital
ownership interests
held by the Company power held by the
(%) Company (%)
Broadford Global Limited Parent Private limited company (share limited) Hong Kong Investment holding HKD 21120986262 2.21 63.01 (Note)
Note: Broadford Global Limited directly holds 2.21% equity of the Company and indirectly holds 14.84% and 45.96% equity of the Company
through the subsidiaries China Merchants Gangtong Development (Shenzhen) Co. Ltd. and China Merchants Port Investment Development
Company Limited respectively. The ultimate controlling shareholder of the Company is China Merchants Group.
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in Note (X) 1 Note (XI) 1.- 161 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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.Other joint ventures or associates that have related party transactions with the Group in the current
year or formed balances of related party transactions with the Group in the prior year are as
follows:
Name of joint venture or associate Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Guizhou East Land Port Operation Co. Ltd. Joint venture
Qingdao Qianwan United Container Terminal Co. Ltd. Joint venture
Qingdao Qianwan West Port United Wharf Co. Ltd. Joint venture
Qingdao Qianwan New United Container Terminal Co. Ltd. Joint venture
COSCO Logistics (Zhanjiang) Co. Ltd. Joint venture
China Ocean Shipping Agency (Zhanjiang) Co. Ltd Joint venture
Yantai Port Group Laizhou Port Co. Ltd. Joint venture
Qingdao Wutong Century Supply Chain Co. Ltd. Joint venture
China Merchants Port (Shenzhen) Industrial Innovation Private Equity
Investment Fund Partnership (Limited Partnership) ("Investment Fund") Joint venture
Doraleh Multi-purpose Port Associate
Great Horn Development Company FZCo Associate
International Djibouti Industrial Parks Operation FZCo Associate
Port de Djibouti S.A. Associate
Terminal Link SAS Associate
Tin-Can Island Container Terminal Ltd Associate
Guizhou Qiandongnan Continental Land Port Operation Co. Ltd. Associate
Nanshan Group and its subsidiaries Associate
SIPG Associate
Ningbo Zhoushan and its subsidiaries Associate
Shenzhen Baohong Technology Co. Ltd. Associate
Tianjin Haitian Bonded Logistics Co. Ltd. Associate
Merchants Port City Associate
Zhanjiang Xiagang United Development Co. Ltd. Associate
Chu Kong River Trade Terminal Co. Ltd. Associate
Shantou Zhonglian Tally Co. Ltd Associate
Shantou International Container Terminals Limited Associate
Shenzhen Bay Electricity Industry Co. Ltd. Associate
Tianjin Port Container Terminal Co. Ltd. Associate
Lac Assal Investment Holding Company Limited Associate
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Associate
Ningbo Port Container Transportation Co. Ltd. Associate
Shenzhen Chiwan Haike Industrial Operation Co. Ltd. Associate
Liaoning Port and its subsidiaries Associate controlled by the sameultimate controlling shareholder
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Associate
Antong Holdings and its subordinate companies Associate
- 162 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Zhoushan Blue Ocean Investment Co. Ltd. Minority shareholder of subsidiary
Sri Lanka Ports Authority Minority shareholder of subsidiary
Guangdong Shunkong City Investment Real Estate Co. Ltd. Minority shareholder of subsidiary
Zhanjiang Infrastructure Construction Investment Group Co. Ltd. Minority shareholder of subsidiary
Dalian Port Logistics Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Communications Engineering Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Guangdong Co. Ltd. Controlled by the same ultimate controlling shareholder
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate controlling shareholder
South China Sinotrans Supply Chain Management Co. Ltd. Controlled by the same ultimate controlling shareholder
EuroAsia Dockyard Enterprise and Development Limited Controlled by the same ultimate controlling shareholder
Qingdao Bonded Logistics Park Sinotrans Warehousing Logistics
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 Nanyou (Holdings) Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Qianhai Shekou Free Trade Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants International Shipping Agency (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Merchants to Home Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shenzhen Ro-Ro Shipping Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Commercial Property Investment (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Property Management (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards (Shekou) Limited Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards Limited Controlled by the same ultimate controlling shareholder
China Merchants International Cold Chain (Shenzhen) Company
Limited Controlled by the same ultimate controlling shareholder
China Merchants Group Finance Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Port Investment Development Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Shanghai) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Tianjin) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shekou Industrial Zone Holdings Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchant Food (China) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Tongshang Finance Lease Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Power Supply Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Securities Co. Ltd. Controlled by the same ultimate controlling shareholder
China Traffic Import and Export Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Changhang Group Limited Controlled by the same ultimate controlling shareholder
Shenzhen Dehan Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Guangdong Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Healthcare (Qichun) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Tally Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Central China Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Shipping Limited Controlled by the same ultimate controlling shareholder
Sinoway Shipping Ltd. Controlled by the same ultimate controlling shareholder
- 163 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
China Merchants Heavy Industry (Jiangsu) Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shantou Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants-Logistics Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Ningbo Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines (Hong Kong) Company Limited Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines Co. Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Port Group Co. Ltd. and its subsidiaries
("Yingkou Port Group") Controlled by the same ultimate controlling shareholder
Liaoning Port Group Co. Ltd. Controlled by the same ultimate controlling shareholder
Liaoning Electronic Port Co. Ltd Controlled by the same ultimate controlling shareholder
China Yangtze River Shipping Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Gangrong Big Data Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Construction Supervision Consulting Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Group Corporation Limited Controlled by the same ultimate controlling shareholder
Dalian Container Terminal Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen West Port Security Service Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Container Controlled by the same ultimate controlling shareholder
China Merchants Apartment Development (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Bonded Zone Yongdexin Real Estate Development &
Construction Co. Ltd. Controlled by the same ultimate controlling shareholder
Jifa Logistics Controlled by the same ultimate controlling shareholder
Dalian Jifa South Coast International Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Jifa Port Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
CHINA MERCHANTS SHIPPING AND ENTERPRISES COMPANY
LIMITED Controlled by the same ultimate controlling shareholder
Ningbo Transocean International Forwarding Agency Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Xingang Kuangshi Terminals Co. Ltd. Controlled by the same ultimate controlling shareholder
Dandong Port Group Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Port and Shipping Digital Technology (Liaoning)
Co. Ltd. Controlled by the same ultimate controlling shareholder
Ocean Driller III Limited Controlled by the same ultimate controlling shareholder
Dalian Ganglong Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Wanhai Building Management Co. Ltd. Significantly influenced by the ultimate controllingshareholder
China Merchants Union (BVI) limited Significantly influenced by the ultimate controllingshareholder
Datong Securities Co. Ltd Significantly influenced by the ultimate controllingshareholder
Dalian Automobile Terminal Co. Ltd Significantly influenced by the ultimate controllingshareholder
Dalian Port Design Research Institute Co. Ltd. Significantly influenced by the ultimate controllingshareholder
Khor Ambado FZCo Significantly influenced by the ultimate controllingshareholder
China Merchants Bank Co. Ltd. Significantly influenced by the ultimate controllingshareholder
China Merchants (Shenzhen) Power Supply Co. Ltd. Significantly influenced by the ultimate controllingshareholder
- 164 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Rendering and receipt of services
Pricing method and
Related party Content of transaction decision proceduresof related 2023 2022
transactions
Receipt of services:
Shenzhen Bay Electricity Industry Co. Ltd. Service expense Negotiation 56553895.23 55476519.62
Shenzhen Nanyou (Holdings) Ltd. Service expense Negotiation 37373052.06 5764441.32
China Merchants (Shenzhen) Power Supply Co. Ltd. Service expense Negotiation 19085551.42 17893208.32
Qingdao Qianwan West Port United Wharf Co. Ltd. Service expense Negotiation 18954315.25 18229532.95
China Merchants Property Management (Shenzhen)
Co. Ltd. Service expense Negotiation 15013993.93 7959601.92
Nanshan Group and its subsidiaries Service expense Negotiation 12922553.88 20553330.63
Ocean Driller III Limited Service expense Negotiation 12444743.72 -
Shenzhen West Port Security Service Co. Ltd. Service expense Negotiation 11300450.18 11952754.94
Yiu Lian Dockyards Limited Service expense Negotiation 8104140.51 8489653.19
Ningbo Zhoushan and its subsidiaries Service expense Negotiation 7569178.76 14417120.66
China Merchants Zhangzhou Development Zone Power
Supply Co. Ltd. Service expense Negotiation 6449368.77 5562706.02
International Djibouti Industrial Parks Operation FZCo Service expense Negotiation 6264666.66 2344919.84
Hoi Tung (Shanghai) Company Limited Service expense Negotiation 5014184.85 19923373.82
China Merchants Commercial Property Investment
(Shenzhen) Co. Ltd. Service expense Negotiation 5000000.00 3896620.63
Other related parties Service expense Negotiation 37272690.46 60512567.41
China Merchants Bank Co. Ltd. Purchase of structureddeposits Negotiation 3180000000.00 900061111.11
China Merchants Group Finance Company Limited Interest expense Negotiation 26303900.66 74066413.54
China Merchants Bank Co. Ltd. Interest expense Negotiation 17596634.76 8970399.98
China Merchants Finance Lease (Tianjin) Co. Ltd. Interest expense Negotiation 2117332.10 724437.17
Total 3485340653.20 1236798713.07
Rendering of service:
COSCO Logistics (Zhanjiang) Co. Ltd. Service income Negotiation 243101038.82 203783472.45
Antong Holdings and its subordinate companies Service income Negotiation 108978140.94 124308389.86
Liaoning Port and its subsidiaries Service income Negotiation 80155659.35 165608963.82
China Ocean Shipping Agency (Zhanjiang) Co. Ltd Service income Negotiation 75114485.59 59100409.00
Qingdao Qianwan United Container Terminal Co. Ltd. Service income Negotiation 69319211.87 61896678.04
China Marine Shipping Agency Guangdong Co. Ltd. Service income Negotiation 36263254.23 57816828.74
China Merchants International Shipping Agency
(Shenzhen) Co. Ltd. Service income Negotiation 26223978.84 29854035.10
Yingkou Port Group Co. Ltd. and its subsidiaries
("Yingkou Port Group") Service income Negotiation 25600739.56 41932643.50
Yiu Lian Dockyards (Shekou) Limited Service income Negotiation 12403540.05 15088720.57
Sinotrans Container Lines Co. Ltd. Service income Negotiation 11703055.83 7891652.35
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Service income Negotiation 10684159.25 5354930.31
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Service income Negotiation 9724814.72 -
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Service income Negotiation 8632714.51 8665860.83
Shenzhen Baohong Technology Co. Ltd. Service income Negotiation 8201361.90 5562857.25
China Merchants International Cold Chain (Shenzhen)
Company Limited Service income Negotiation 7196978.46 4050145.80
China Merchants Port Investment Development Company
Limited Service income Negotiation 6905698.13 1907632.07
China Ocean Shipping Agency Shenzhen Co. Ltd. Service income Negotiation 6779104.47 4966841.25
Other related parties Service income Negotiation 81221890.50 141359228.82
Terminal Link SAS Service income Negotiation 138262807.50 169844015.81
Port of Newcastle and its subsidiaries Service income Negotiation 55424394.92 17721583.77
China Merchants Bank Co. Ltd. Service income Negotiation 51248973.95 105426962.23
China Merchants Group Finance Company Limited Service income Negotiation 33052458.75 25519980.42
Tianjin Haitian Bonded Logistics Co. Ltd. Service income Negotiation 1210342.38 1558375.91
China Merchants Union (BVI) limited Default income Negotiation 34137339.48 -
Total 1141546144.00 1259220207.90
- 165 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
Name of the lessee Type of leased assets decision procedures
Lease income Lease income
of related recognized in the recognized in the
transactions current year prior year
Qingdao Qianwan West Port United Wharf Co. Ltd. Buildings and structures Negotiation 14311677.72 10222395.86
Qingdao Bonded Logistics Park Sinotrans Warehousing Port and terminal
Logistics Co. Ltd. facilities Negotiation 6680118.90 6876165.97
China Merchant Food (China) Co. Ltd. Buildings and structures Negotiation 5964675.96 5683461.66
China Traffic Import and Export Co. Ltd. Buildings and structures Negotiation 5473072.56 5473072.56
Qingdao Sinotrans Mining Technology Co. Ltd. Buildings and structures Negotiation 4750557.12 4750557.12
Qingdao Sinotrans Supply Chain Management Co. Ltd. Buildings and structures Negotiation 3438231.48 3558552.62
Qingdao Qianwan United Container Terminal Co. Ltd. Buildings and structures Negotiation 3323938.08 3037651.81
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Equipment and storageyards Negotiation 2719625.46 1819957.10
Qingdao Wutong Century Supply Chain Co. Ltd. Buildings and structures Negotiation 2705626.50 2119296.03
China Merchants Securities Co. Ltd. Buildings and structures Negotiation 2697967.83 2567514.78
Nanshan Group and its subsidiaries Buildings and structures Negotiation 2283922.57 5065342.55
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 2268270.47 2195466.64
Qingdao Sinotrans Logistics Co. Ltd. Buildings and structures Negotiation 2064723.80 -
China Merchants Real Estate (Shenzhen) Co. Ltd. Buildings and structures Negotiation - 7152157.00
Buildings and
Other related parties structures land use Negotiation 5928324.10 5600826.68
rights
Total 64610732.55 66122418.38
- 166 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
assets that are accounted for measurement of lease Rental paid
Interest expenses on lease
Name of the lessor Type of leased assets liabilities
Addition to right-of-use assets
using simplified approach liabilities
2023202220232022202320222023202220232022
China Merchants Finance Lease (Shanghai) Co. Ltd. Port and terminal facilitiesMachinery and equipment - - - - 110343653.60 116152138.56 7734573.29 13517478.02 - -
Buildings and structures Port
Nanshan Group and terminal facilities Land 34242.32 28161.16 - - 69881796.93 72311711.35 4454094.13 7595712.33 - 9903480.08
use right Others
China Merchants Tongshang Finance Lease Co. Ltd. Machinery and equipment - - - - 46381918.54 64099065.58 1266294.12 3844907.71 - -
China Merchants Finance Lease (Tianjin) Co. Ltd. Port and terminal facilities - - - - 41997224.42 38839274.64 4035780.92 4986303.85 - -
China Merchants Shekou Industrial Zone Holdings Port and terminal facilities
Co. Ltd. Land use right - - - - 36699122.62 36699122.62 1209619.98 3046636.47 91911426.83 78187153.30
EuroAsia Dockyard Enterprise and Development
Limited Port and terminal facilities - - - - 14908924.82 14696367.93 446855.68 440484.85 14462069.14 14255883.08
Shenzhen Qianhai Shekou Free Trade Investment Port and terminal facilities
Development Co. Ltd. Land use right 7937320.80 7892513.32 - - 8175440.38 8175440.38 - - - -
China Merchants Commercial Property Investment
(Shenzhen) Co. Ltd. Buildings and structures - - - - 6488599.40 6473427.40 471603.69 181534.99 10920656.12 -
Shenzhen Nanyou (Holdings) Ltd. Land use right 1655096.34 1995553.15 - - 1995553.20 1995553.15 - - - -
China Merchants International Cold Chain
(Shenzhen) Company Limited Port and terminal facilities 148500.00 859290.00 - - 1893762.89 2782367.73 32922.55 83666.10 - -
Shenzhen Wanhai Building Management Co. Ltd. Buildings and structures - - - - 1881947.00 1202209.02 70805.86 106595.46 1708272.10 -
- 167 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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: - continued
Short-term lease expenses or Variable lease payments that
expenses on leases of low- are not included in the Rental paid Interest expenses on lease Addition to right-of-use assets
Name of the lessor Type of leased assets value assets that are accounted measurement of lease liabilities
for using simplified approach liabilities
2023202220232022202320222023202220232022
Dalian Bonded Zone Yongdexin Real Estate
Development & Construction Co. Ltd. Buildings and structures - - - - 413854.72 408741.23 - - - 393967.46
China Merchants Apartment Development
(Shenzhen) Co. Ltd. Buildings and structures 144662.87 142674.30 - - 142674.30 142674.30 - - - -
Dalian Port Group Corporation Limited Buildings and structures - - - - 80000.00 80000.00 5613.75 9766.56 - -
Dalian Port Communications Engineering Co. Ltd. Buildings and structures - - - - 50000.00 50000.00 8196.73 11498.73 - -
Shenzhen Chiwan Haike Industrial Operation
Co. Ltd. Buildings and structures - 1101345.84 - - - 1200466.97 - - - `
Qingdao Qianwan United Container Terminal
Co. Ltd. Port and terminal facilities - - - - - 662285.71 - 18421.02 - 1079443.53
Total 9919822.33 12019537.77 - - 341334472.82 365970846.57 19736360.70 33843006.09 119002424.19 103819927.45
- 168 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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
2023
Terminal Link SAS (Note 1) 76655687.32 76655687.32 11 June 2013 2033 No
Khor Ambado FZCo (Note 2) 203981760.00 156254811.86 24 May 2019 2032 No
Terminal Link SAS (Note 1) 114527259.00 114527259.00 25 Jan 2023 2030 No
Total 395164706.32 347437758.18 —— —— ——
2022
Terminal Link SAS (Note 1) 66490102.62 66490102.62 11 June 2013 2033 No
Khor Ambado FZCo (Note 2) 200580480.00 120182425.59 24 May 2019 2032 No
Total 267070582.62 186672528.21 —— —— ——
Note 1: CMA CGM S.A. is another shareholder of Terminal Link SAS an associate of the
Group. The Group has made a commitment to CMA CGM S.A. that the Group will
provide guarantee for its bank loans and other liabilities to Terminal Link SAS to the
extent of the Group's 49% ownership interest in the company. The actual guaranteed
amount is RMB 191182946.32as at 31 December 2023. If any guarantee liability
occurs the Group will compensate CMA CGM S.A.Note 2: Khor Ambado FZCo is a related party of the Group's ultimate controlling shareholder.The Group provides guarantee for its bank loans and other liabilities the actual amount
of which as at 31 December 2023 is RMB 156254811.86.
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
2023
Borrowings
China Merchants Bank Co. Ltd. 1150941725.01 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 576421628.29 Actual borrowing date Agreed repayment date Long-term borrowings
Ocean Driller III Limited 332846013.33 Actual borrowing date Agreed repayment date Other current liabilities
China Merchants Group Finance Company Limited 207179377.43 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 68062333.33 Actual borrowing date Agreed repayment date Long-term borrowings
Total 2335451077.39 — — —— ——
2022
Borrowings
China Merchants Group Finance Company Limited 604990472.82 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 140139852.77 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 31618224.87 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Bank Co. Ltd. 15015583.33 Actual borrowing date Agreed repayment date Short-term borrowings
Total 791764133.79 — — —— ——
- 169 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTYRELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision procedures of 2023 2022
related transactions
Ningbo Zhoushan Equity investment Valuation 1845000000.00 -
Liaoning Port Equity investment Valuation 83027500.00 -
Dalian Port Container Equity investment Valuation 57083400.00 -
Jifa Logistics Equity investment Valuation 33815300.00 -
Yingkou Port Group Equity investment Valuation 19002800.00 -
Hoi Tung (Shanghai) Company Limited Fixed assets Negotiation - 8831858.42
Hoi Tung (Shanghai) Company Limited Construction in progress Negotiation - 4853097.34
Total —— —— 2037929000.00 13684955.76
(6) Compensation for key management personnel
Item 2023 2022
Compensation for key management personnel 18932731.03 20313774.52
6. Amounts due from/to related parties that have not settled
(1) Amounts due from related parties
Item Related party 31/12/2023 31/12/2022
China Merchants Bank Co. Ltd. 3778553414.06 3387973124.59
Cash and bank balances China Merchants Group Finance Company Limited 2090078155.93 1841698554.32
Total 5868631569.99 5229671678.91
Held-for-trading
financial assets China Merchants Bank Co. Ltd. - 900061111.11
Antong Holdings and its subordinate companies 8919131.23 8395245.04
China Marine Shipping Agency Guangdong Co. Ltd. 2765338.38 17505768.03
Sinotrans Container Lines Co. Ltd. 2763240.00 1287851.75
Great Horn Development Company FZCo 2162941.76 2157859.50
China Ocean Shipping Agency Shenzhen Co. Ltd. 2035495.50 758113.05
China Merchants International Shipping Agency (Shenzhen)
Co. Ltd. 1750277.36 1530505.68
Dalian Container Terminal Co. Ltd. 1725150.00 1957840.00
COSCO Logistics (Zhanjiang) Co. Ltd. 1505114.97 4045734.88
Nanshan Group and its subsidiaries 1214194.85 1404627.23
Qingdao Qianwan West Port United Wharf Co. Ltd. 1207750.72 3749064.99
Qingdao Qianwan United Container Terminal Co. Ltd. 1188600.01 1729380.01
Yiu Lian Dockyards (Shekou) Limited 1077910.40 3554521.60
Accounts receivable Sinoway Shipping Ltd. 755606.02 4564389.71
Sinotrans (HK) Shipping Limited 682942.44 375748.78
Liaoning Port - 3680900.00
Khor Ambado FZCo - 3108610.49
Dalian Jifa Port Logistics Co. Ltd. - 2220941.63
Dalian Jifa South Coast International Logistics Co. Ltd. - 1839478.79
Liaoning Port Group Co. Ltd. - 1821581.00
Port de Djibouti S.A. - 1770749.55
South China Sinotrans Supply Chain Management Co. Ltd. - 659854.40
China Marine Shipping Agency Ningbo Co. Ltd. - 164981.21
Yingkou Port Group Co. Ltd. and its subsidiaries
("Yingkou Port Group") - 160491.00
Other related parties 5733746.69 13549055.64
Total 35487440.33 102283282.02
- 170 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 31/12/2023 31/12/2022
Nanshan Group 203577000.00 240591000.00
Merchants Port City 38809044.77 41847044.77
Dalian Port Logistics Network Co. Ltd. 30605256.76 -
Yingkou Gangxin Technology Co. Ltd. 23881213.75 -
Dividends receivable Tin-Can Island Container Terminal Ltd 21960680.22 65121449.40COSCO Logistics (Zhanjiang) Co. Ltd. 13449001.16 18449001.16
China Ocean Shipping Agency Shenzhen Co. Ltd. 11232000.00 -
Qingdao Qianwan United Container Terminal Co. Ltd. - 50000000.00
Other related parties - 232047.23
Total 343514196.66 416240542.56
Chu Kong River Trade Terminal Co. Ltd. 36575039.20 36053588.00
Shenzhen Nanyou (Holdings) Ltd. 30639652.92 6725260.86
Port de Djibouti S.A. 24966517.50 24808664.70
Shenzhen Qianhai Shekou Free Trade Investment Development
Co. Ltd. 6310000.00 6310000.00
China Merchants Port Investment Development Company
Limited 2830188.69 -
Other receivables EuroAsia Dockyard Enterprise and Development Limited 1531896.04 1510055.76Tin-Can Island Container Terminal Ltd 1320562.03 -
Nanshan Group and its subsidiaries 1189566.10 1009839.70
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 1166408.40 1132846.40
Zhoushan Blue Ocean Investment Co. Ltd. - 4996989.39
China Merchants Shenzhen Ro-Ro Shipping Co. Ltd. - 2899163.95
Other related parties 2142975.51 3550453.73
Total 108672806.39 88996862.49
Nanshan Group and its subsidiaries - 9000.00
Prepayments Other related parties 250084.22 6351.75
Total 250084.22 15351.75
Terminal Link SAS 7468849.83 46409214.10
Non-current assets due China Merchants Finance Lease (Shanghai) Co. Ltd. 6200000.00 -
within one year China Merchants Finance Lease (Tianjin) Co. Ltd. 3800000.00 3800000.00Port of Newcastle and its subsidiaries - 852919208.25
Total 17468849.83 903128422.35
Port of Newcastle and its subsidiaries 921402438.00 -
Terminal Link SAS 204299511.52 2931108250.96
Tianjin Haitian Bonded Logistics Co. Ltd. 34300000.00 34300000.00
Long-term receivables Zhoushan Blue Ocean Investment Co. Ltd. 4996989.39 -
China Merchants Finance Lease (Tianjin) Co. Ltd. 695876.01 659515.88
China Merchants Finance Lease (Shanghai) Co. Ltd. - 6200000.00
Total 1165694814.92 2972267766.84
- 171 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 31/12/2023 31/12/2022
China Merchants Bank Co. Ltd. 1150880891.67 15015583.33
Short-term borrowings China Merchants Group Finance Company Limited 200176534.70 413453629.50
Total 1351057426.37 428469212.83
Other current liabilities China Merchants Group Finance Company Limited - 10056575.34
Khor Ambado FZCo 22639585.37 -
Antong Holdings and its subordinate companies 20360897.30 16948161.45
Dalian Port Logistics Technology Co. Ltd. 17607121.00 -
Ningbo Zhoushan and its subsidiaries 14691952.29 16725206.29
Dalian Port Logistics Network Co. Ltd. 8355644.80 -
Nanshan Group and its subsidiaries 5968662.37 4259215.79
Shenzhen Bay Electricity Industry Co. Ltd. 5394353.74 4920501.06
Qingdao Qianwan West Port United Wharf Co. Ltd. 4066438.84 8007474.16
China Merchants Port and Shipping Digital Technology
Accounts payable (Liaoning) Co. Ltd.
2905000.00-
Dalian Ganglong Technology Co. Ltd. 2739450.00 -
EuroAsia Dockyard Enterprise and Development Limited 2413589.56 2363408.70
Shenzhen Merchants to Home Technology Co. Ltd. 1781775.33 -
China Merchants Port Investment Development Company
Limited 1649069.28 1203536.99
Yiu Lian Dockyards Limited 1135115.31 792077.94
Sinoway Shipping Ltd. - 4886700.00
China Marine Shipping Agency Shenzhen Co. Ltd. 259966.50 248149.17
Other related parties 2761309.78 4212603.81
Total 100037979.18 64567035.36
China Merchants Port Investment Development Company
Limited 5358074.44 -
Receipts in advance Qingdao Wutong Century Supply Chain Co. Ltd. 196301.30 196301.30
Other related parties - 160600.00
Total 5554375.74 356901.30
COSCO Logistics (Zhanjiang) Co. Ltd. 4552313.24 1275397.28
Qingdao Sinotrans Supply Chain Management Co. Ltd. 1464429.12 368484.60
China Merchants Port Investment Development Company
Limited 660943.40 -
China Ocean Shipping Agency Shenzhen Co. Ltd. 633024.00 -
Shenzhen Baohong Technology Co. Ltd. 459049.11 -
Contract liabilities Qingdao Sinotrans Logistics Co. Ltd. 440727.56 -Dalian Container Terminal Co. Ltd. - 9679785.44
Dandong Port Group Co. Ltd. - 3842709.07
Qingdao Qianwan United Container Terminal Co. Ltd. - 1556753.55
Yingkou Xingang Kuangshi Terminals Co. Ltd. - 1514844.30
Antong Holdings and its subordinate companies - 1468616.91
Other related parties 1021090.85 2508480.44
Total 9231577.28 22215071.59
China Merchants Zhangzhou Development Zone Co. Ltd. 77734806.46 20000000.00
Dalian Port Container 16160696.61 14000000.00
Jifa Logistics 9575104.42 3000000.00
Yingkou Port Group 5372456.78 -
Dividends payable Yiu Lian Dockyards Limited 2334150.00 -
Zhanjiang Infrastructure Construction Investment Group
Co. Ltd. - 41400234.06
Sri Lanka Ports Authority - 10446900.00
Total 111177214.27 88847134.06
Lac Assal Investment Holding Company Limited 64310900.95 47359371.46
Terminal Link SAS 10423425.44 -
China Merchants Real Estate (Shenzhen) Co. Ltd. 10079369.00 10079369.00
Other payables China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 5000000.03 3750000.03
Antong Holdings and its subordinate companies 4743266.37 12730734.37
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1690130.78 1628515.12
- 172 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 31/12/2023 31/12/2022
China Merchant Food (China) Co. Ltd. 1069017.00 1069017.00
China Traffic Import and Export Co. Ltd. 1055975.76 -
Hoi Tung (Shanghai) Company Limited 966785.34 -
China Merchants International Cold Chain (Shenzhen)
Company Limited 757976.00 -
Shenzhen Baohong Technology Co. Ltd. 749269.39 749269.39
Other payables China Merchants Shekou Industrial Zone Holdings Co. Ltd. - 6420820.68
China Merchants Port Investment Development Company
Limited - 4130081.82
China Merchants Real Estate Co. Ltd. - 3263853.86
Zhanjiang Xiagang United Development Co. Ltd. - 1439753.57
Other related parties 6946931.01 6732058.14
Total 107793047.07 99352844.44
China Merchants Group Finance Company Limited 288071994.22 110838087.45
China Merchants Bank Co. Ltd. 199326195.84 11362639.43
China Merchants Finance Lease (Shanghai) Co. Ltd. 76461173.65 103236707.51
Nanshan Group and its subsidiaries 63331699.85 65165836.97
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 35719107.95 37012422.69
China Merchants Finance Lease (Tianjin) Co. Ltd. 7548329.72 32339542.44
Non-current liabilities China Merchants Commercial Property Investment (Shenzhen)
due within one year Co. Ltd.
6396788.04-
China Merchants International Cold Chain (Shenzhen)
Company Limited 375528.56 1050270.17
China Merchants Tongshang Finance Lease Co. Ltd. - 45115824.42
EuroAsia Dockyard Enterprise and Development Limited - 14255883.08
Guangdong Shunkong City Investment Real Estate Co. Ltd. - 3162000.00
Other related parties - 1962815.09
Total 677230817.83 425502029.25
China Merchants Group Finance Company Limited 721624592.13 445490692.58
Long-term borrowings China Merchants Bank Co. Ltd. 158000000.00 325000000.00
Total 879624592.13 770490692.58
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 62185360.58 5993041.70
China Merchants Finance Lease (Shanghai) Co. Ltd. - 75833546.45
Nanshan Group and its subsidiaries - 65431073.09
Lease liabilities China Merchants Finance Lease (Tianjin) Co. Ltd. - 15833403.29China Merchants International Cold Chain (Shenzhen)
Company Limited - 253362.41
Other related parties 1070904.61 803148.25
Total 63256265.19 164147575.19
Long-term payables China Merchants Finance Lease (Tianjin) Co. Ltd. 33905690.32 41052268.30
(XVI) SHARE-BASED PAYMENTS
1. Equity instruments
Granted in the current Exercised in the current Unlocked in the current
Type of targets year year year Lapsed in the current year
granted
Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - - - - - 354720 1129997.09
- 173 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 year
Outstanding stock option at the end of current year
Type of targets granted
Range of exercise prices Remaining term of contract
Management RMB 14.28 to RMB 16.53 37 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 Criteria of exercising in vesting period of batch 1
of the current year and the estimates of prior year and batch 2 are not satisfied
The aggregate amount of equity-settled share-based payments that is
included in capital reserve 6644590.36
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.- 174 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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.As at the date on which the financial statements are issued as 12 of the incentive targets for the
first batch of stock option granted under the stock option incentive plan (phase I) have retired or
no longer serve the Company the board of directors of the Company decided to cancel in total of
339600 shares of stock option granted but not yet exercised by such persons; as 5 of the incentive
targets for the third vesting period of the stock option (1st batch) under the stock option incentive
plan (phase I) of the Company have not satisfied the criteria of exercise in their performance
assessment the Company has cancelled the 20% of the stock option (totalling 15120 shares) for
the third vesting period of the stock option (1st batch) under the stock option incentive plan (phase
I) held by the 5 incentive targets.As at the date on which the financial statements are issued 195 incentive targets who can exercise
the rights for the third vesting period of the stock option (1st batch) under the stock option
incentive plan (phase I) included: (1) 190 incentive targets who met the designated grades in the
performance assessment holding 100% of the stock option (totalling 3471600 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).
3. Share-based payment expenses in the current year
Type of targets granted Equity-settled share-based payment expenses
Management 4016693.76
- 175 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XVII)COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item 31/12/2023 31/12/2022
Commitments that have been entered into but have not
been recognized in the financial statements
- Commitment to make contributions to the investees 467604906.76 38956185.01
- Commitment to acquire and construct long-term assets 2407538867.35 1802316899.52
- Commitment to invest port construction - 5571690.76
- Others - 383560.31
Total 2875143774.11 1847228335.60
2. Contingencies
Item 31/12/2023 31/12/2022
Contingent liabilities brought by external litigations (Note 1) 946218359.48 279438527.06
Guarantee for borrowings of related parties (Note 2) 347437758.18 186672528.21
Total 1293656117.66 466111055.27
Note 1: This mainly represents the significant contingent liabilities arising from the litigations
between TCP and its subsidiaries and local tax authority employee or former employee
of TCP and its subsidiaries in Brazil at as the year end. According to the latest estimates
of the Group's management the possible compensation is RMB 946218359.48 but it is
not likely to cause outflow of economic benefits from the Group. Therefore the
contingent liabilities arising from the above pending litigations are not recognized as
provisions. The counter-bonification where the Group as the beneficiary will be
executed by the former TCP shareholder that disposed the shares. According to the
counter-bonification agreement the former TCP shareholder needs to make counter-
bonification to the Group in respect of the above contingent liabilities with the
compensation amount not exceeding pre-determined amount and specified period.Zhanjiang Port a subsidiary of the Company entered into an EPC contract for the
General Cargo Terminal Project at Donghai Island Port Area of Zhanjiang Port with
CCCC Water Transport Planning and Design Institute Co. Ltd. on 28 June 2016 with
the agreed construction period from 28 June 2016 to 8 June 2018. After the contract was
signed the overall progress of the project construction was delayed due to the
optimization and adjustment of the layout plan and process design for the terminal. In
December 2022 CCCC Water Transport Planning and Design Institute Co. Ltd. filed a
litigation to the court for losses caused by delay in construction adjustment to project
scale changes in design and other reasons and may require the Zhanjiang Port for
compensation.The claims of CCCC Water Transport Planning and Design Institute Co. Ltd. were
inconsistent with those agreed in the contract the relevant result of the litigation could
not be reasonably estimated and the management of the Company believed that the
possibility of loss was quite low therefore no provisions were made for the above
pending litigation.- 176 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XVII)COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies - continued
Note 2: As at 31 December 2023 the guarantees provided by the Group for related parties are
detailed in Note XV 5(3).As at 31 December 2023 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 small.Except for the above-mentioned contingencies as at 31 December 2023 the Group had no other
major guarantees and other contingencies that need to be explained.(XVIII)EVENTSAFTER THE BALANCE SHEET
According to the profit distribution plan for 2023 and as approved by the 7th meeting of the 10th
board of directors on 29 March 2024 the Company based on the total shares of 2499074661 as
at 31 December 2023 distributes cash dividends at RMB 5.80(inclusive of tax) for every 10
shares totalling RMB 1449463303.38. The above profit distribution plan has not yet been
approved by shareholders' meeting.(XIX) OTHER SIGNIFICANT EVENTS
1. Segment reporting
(1) Basis for determining reporting segments and accounting policies
The key management team of the Company is regarded as the CODM who reviews the Group's
internal reports in order to assess performance allocate resources and determine the operating
segments. The CODM considers the operation of the Group in terms of business and locations.Individual operating segments for which discrete financial information is available are identified
by the CODM and are operated by their respective management teams. These individual operating
segments are aggregated in arriving at the reporting segments of the Group.From business and location perspectives the management assesses the performance of the
Group's business operations including ports operation bonded logistics operation and other
operations.Ports operation
Ports operation includes container terminal operation bulk and general cargo terminal operation
operated by the Group and its associates and joint ventures.- 177 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2007111746.88
representing 12.74% (2022: 10.30%) of the Group's operating income for 2023.- 178 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 is as follows:
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics Others UnappropriatedYangtze River operation amount TotalPearl River Delta Delta Bohai Rim Others
Other locations Sub-total
Operating income 6075691801.01 557788311.93 76760801.96 3574402653.20 4751630018.56 15036273586.66 532670444.04 181531749.52 - 15750475780.22
Operating cost 3640281453.34 361926675.75 63825074.56 2648882080.97 2081165945.51 8796081230.13 289816313.93 232289163.69 - 9318186707.75
Segment operating profit (Losses
are marked with "-") 2435410347.67 195861636.18 12935727.40 925520572.23 2670464073.05 6240192356.53 242854130.11 -50757414.17 - 6432289072.47
Taxes and surcharges 36973822.23 2937337.05 1126391.13 45970219.08 174670480.72 261678250.21 26757765.42 24332840.83 229169.73 312998026.19
Administrative expense 437814344.01 26162000.70 9644685.03 529927581.34 289653304.36 1293201915.44 49569679.55 1111358.13 432758202.26 1776641155.38
R&D expenses 176892569.73 23890344.38 - 22956157.96 - 223739072.07 - - - 223739072.07
Financial expenses 57700690.44 20953099.98 1883921.89 85621075.66 55969633.29 222128421.26 3129354.57 20854412.74 1593001139.57 1839113328.14
Other income 148491604.96 10227298.67 203918.26 50512014.48 - 209434836.37 14668272.54 286151.86 - 224389260.77
Investment income 130131600.03 4956167513.13 416731511.24 50706320.64 454900989.67 6008637934.71 59521957.15 245264989.05 35252059.89 6348676940.80
Gains from changes (Losses are
marked with "-") 102777832.55 -58125015.24 80543109.95 -6584009.33 - 118611917.93 -57875873.69 9644865.10 2971891.18 73352800.52
in fair value
Gains from impairment of
credit (Losses are marked with "-") 7327814.78 -36129.03 - 3468262.80 -7171766.68 3588181.87 33695859.31 - - 37284041.18
Gains from impairment of
assets (Losses are marked with "- -1091994.67 -189030229.12 - - -1175087.49 -191297311.28 - - - -191297311.28
")
Gains from disposal of
assets (Losses are marked with "- 6196256.45 - -7362.22 34965994.86 507804.31 41662693.40 -602074.20 -4253879.72 -47206.87 36759532.61
")
Operating profit (Losses are marked
with "-") 2119862035.36 4841122292.48 497751906.58 374114121.64 2597232594.49 10430082950.55 212805471.68 153886100.42 -1987811767.36 8808962755.29
- 179 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 is as follows: - continued
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logisticsoperation Others
Unappropriated
amount Total
Pearl River Delta Yangtze RiverDelta Bohai Rim Others
Other locations Sub-total
Non-operating income 30640040.33 206852.93 541008.01 8475666.30 41553418.13 81416985.70 151072.00 397901.93 5336064.49 87302024.12
Non-operating expenses 7067285.26 269926.28 89933.45 20553447.08 59763043.59 87743635.66 323424.06 - 9005781.00 97072840.72
Total profit (Losses are marked
with "-") 2143434790.43 4841059219.13 498202981.14 362036340.86 2579022969.03 10423756300.59 212633119.62 154284002.35 -1991481483.87 8799191938.69
Income tax expenses 496377795.59 258020898.94 44218770.18 58080621.40 383193406.85 1239891492.96 35421490.70 27848029.46 418839.81 1303579852.93
Net profit (Losses are marked with
"-")1647056994.844583038320.19453984210.96303955719.462195829562.189183864807.63177211628.92126435972.89-1991900323.687495612085.76
Segment assets 23724145365.09 57709896939.07 9703687046.02 27727348979.52 42500927378.99 161366005708.69 4712961257.31 19403999499.27 13074330201.99 198557296667.26
Total assets in the financial statements 198557296667.26
Segment liabilities 7029170965.33 1275695327.99 158452621.02 6498242286.20 7189272994.18 22150834194.72 540614061.66 617809748.89 49678104233.18 72987362238.45
Total liabilities in the financial statements 72987362238.45
Supplementary information:
Depreciation and amortization 1126510216.09 113947562.11 882064.68 875850774.90 866605229.04 2983795846.82 102034394.34 194738423.53 23167239.73 3303735904.42
Interest income 42679230.74 2243451.14 714733.07 22543238.68 256085052.61 324265706.24 7210199.57 1678151.13 164439864.42 497593921.36
Interest expense 90781497.89 10849293.26 - 107297773.92 314310921.43 523239486.50 8495591.27 19075433.27 1687342285.62 2238152796.66
Investment income from
long-term equity investments 44963451.52 4750830911.12 375529615.82 47995671.63 454900989.67 5674220639.76 59521957.15 245264989.05 - 5979007585.96
under equity method
Long-term equity investments
under equity method 1764751439.03 55844039253.08 8777428828.42 1715660813.08 12507306667.48 80609187001.09 1756185613.17 14300745162.01 - 96666117776.27
Non-current assets other than
long-term equity investments 18193324391.19 398488128.16 14938012.93 20908386344.60 26031938950.63 65547075827.51 2381793244.49 4753153217.29 419380677.78 73101402967.07
- 180 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2022 is as follows:
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics Others Unappropriated Total (Restated)
Pearl River Delta Yangtze River Bohai Rim Others Other locations Sub-total operation amount (Restated)Delta
Operating income 6774045422.66 1139944516.62 74222857.10 3552074625.60 4086514642.86 15626802064.84 445592537.09 158094525.62 - 16230489127.55
Operating cost 3849914782.32 696788162.45 62264300.65 2691172225.32 1853376921.16 9153516391.90 280270213.56 216675107.48 - 9650461712.94
Segment operating profit (Losses
are marked with "-") 2924130640.34 443156354.17 11958556.45 860902400.28 2233137721.70 6473285672.94 165322323.53 -58580581.86 - 6580027414.61
Taxes and surcharges 32239840.06 5674557.52 1102665.95 49561307.23 152923436.63 241501807.39 22188514.91 18305796.73 253354.43 282249473.46
Administrative expense 435544849.33 37586936.77 9903393.91 536045336.65 266594657.88 1285675174.54 46846479.95 1356901.51 431216180.51 1765094736.51
R&D expenses 227962954.81 40790798.38 - 18952425.51 - 287706178.70 - - - 287706178.70
Financial expenses 43042474.05 12623313.35 16617530.89 105755359.90 202779070.53 380817748.72 11831333.17 42509881.22 1823554709.31 2258713672.42
Other income 128422018.54 6905602.77 99278.36 73123957.51 - 208550857.18 20996809.22 2259661.58 9840742.44 241648070.42
Investment income 222543823.37 5152876665.17 334188303.02 53824558.05 1070198985.49 6833632335.10 94330245.64 425089497.20 24603428.39 7377655506.33
Gains from changes
in fair value (Losses are marked 34481879.58 - -28084576.60 1009908.14 - 7407211.12 -136440861.23 - - -129033650.11
with "-")
Gains from impairment
of credit (Losses are marked -5932959.08 - 269053.38 19276798.42 -221119087.29 -207506194.57 -15967381.98 - - -223473576.55
with "-")
Gains from impairment
of assets (Losses are marked -573122.05 - - -21585898.15 - -22159020.20 - - - -22159020.20
with "-")
Gains from disposal of
assets (Losses are marked with -186834.36 - - -2189571.61 61495.66 -2314910.31 104763.84 57352755.05 -12513.06 55130095.52
"-")
Operating profit (Losses are
marked with "-") 2564095328.09 5506263016.09 290807023.86 274047723.35 2459981950.52 11095195041.91 47479570.99 363948752.51 -2220592586.48 9286030778.93
- 181 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2022 is as follows: - continued
Ports operation
Item Mainland China Hong Kong and Taiwan Bonded logistics Unappropriated
Pearl River Delta Yangtze River Bohai Rim Others Other locations Sub-total operation
Others amount (Restated) Total (Restated)
Delta
Non-operating income 18342596.09 2900356.17 22378312.31 10237915.83 221044827.94 274904008.34 50933.02 992336.45 3327174.96 279274452.77
Non-operating expenses 23387870.39 1035713.16 - 148923783.29 29888387.79 203235754.63 10000.00 - 17196500.05 220442254.68
Total profit (Losses are marked
with "-") 2559050053.79 5508127659.10 313185336.17 135361855.89 2651138390.67 11166863295.62 47520504.01 364941088.96 -2234461911.57 9344862977.02
Income tax expenses 517928967.15 218235972.45 19104784.49 39483784.58 224820817.17 1019574325.84 17884281.49 73694575.33 1806494.09 1112959676.75
Net profit (Losses are marked 2041121086.64 5289891686.65 294080551.68 95878071.31 2426317573.50 10147288969.78with "-") 29636222.52 291246513.63
-2236268405.668231903300.27
Segment assets 24260000005.96 58080072708.01 9491073768.13 27095782491.19 44382357967.93 163309286941.22 4719222985.06 19523260761.95 10035331759.08 197587102447.31
Total assets in the financial statements 197587102447.31
Segment liabilities 10545067732.35 1993414192.41 142428100.05 7095951456.64 7184350827.79 26961212309.24 472931692.54 849543150.07 40981807066.15 69265494218.00
Total liabilities in the financial statements 69265494218.00
Supplementary information:
Depreciation and amortization 1119781238.27 214719968.82 882688.51 851694182.33 801221249.28 2988299327.21 98440779.50 184744488.91 26022221.27 3297506816.89
Interest income 49428469.37 2890732.29 543508.80 27921113.89 255001470.66 335785295.01 1231657.13 1329524.29 131487621.62 469834098.05
Interest expense 86468640.13 10921214.61 - 128204357.08 415728796.45 641323008.27 13108859.14 26701866.03 1544029072.35 2225162805.79
Investment income from
long-term equity investments 134882198.77 5114173074.83 293371940.22 53436206.60 1070198985.49 6666062405.91 94330245.64 424789497.20 - 7185182148.75
under equity method
Long-term equity investments
under equity method 1741189123.54 52146528746.22 8605621312.90 1094348450.19 13193855158.62 76781542791.47 1496017782.58 14086733345.00 - 92364293919.05
Non-current assets other than
long-term equity investments 18338841436.04 4203682076.56 15863803.61 21159269860.52 25053023827.83 68770681004.56 2058218100.73 5083564521.74 880089692.55 76792553319.58
- 182 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 2022
Mainland China Hong Kong and Taiwan 10958608605.93 12105380701.20
Pearl River Delta 6600817552.32 7195529214.88
Yangtze River Delta 557788311.93 1139944516.62
Bohai Rim 225600088.48 217832344.10
Others 3574402653.20 3552074625.60
Other locations 4791867174.29 4125108426.35
Total 15750475780.22 16230489127.55
Total non-current assets 31/12/2023 31/12/2022
Mainland China Hong Kong and Taiwan 128859143257.19 130723044577.52
Pearl River Delta 40390524565.51 42150053552.57
Yangtze River Delta 56242527381.24 56350210822.78
Bohai Rim 9297697381.31 9147542234.74
Others 22928393929.13 23075237967.43
Other locations 40908377486.15 38433802661.11
Total 169767520743.34 169156847238.63
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
4146867314.45 accounting for 26.33% 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 31/12/2023 31/12/2022
Dividends receivable 167092526.14 147896763.88
Other receivables 1575369144.18 2601740991.35
Total 1742461670.32 2749637755.23
- 183 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.2 Dividends receivable
(1) Presentation of dividends receivable
Investee 31/12/2023 31/12/2022
Wharf Holdings Hong Kong 147680363.88 147680363.88
CM International Tech 4758668.03 -
Chiwan Shipping (Hong Kong) Limited 3205094.23 -
Shenzhen Petrochemical Industry (Group) Co. Ltd. 216400.00 216400.00
China Ocean Shipping Agency (Shenzhen) Co. Ltd. 11232000.00 -
Total 167092526.14 147896763.88
Less: Provision for credit loss - -
Carrying amount 167092526.14 147896763.88
(2) Significant dividends receivable aged more than 1 year
Impaired or not and
Item 31/12/2023 31/12/2022 Reason foroutstanding the determinationbasis
Wharf Holdings Hong In processing and
Kong 147680363.88 147680363.88 expected to be Norecovered in 2024
Total 147680363.88 147680363.88
1.3 Other receivables
(1) Aging analysis of other receivables
31/12/2023
Aging Other receivables Provision for Proportion ofcredit loss provision (%)
Within 1 year 910122251.73 - -
1 to 2 years 662450976.98 - -
2 to 3 years 2467600.00 - -
More than 3 years 711772.07 383456.60 53.87
Total 1575752600.78 383456.60 ——
(2) Disclosure of other receivables by nature
Item 31/12/2023 31/12/2022
Amounts due from related parties 1553447353.90 2596356894.67
Advances 4965337.56 2467600.00
Others 17339909.32 3299953.28
Total 1575752600.78 2602124447.95
Less: Provision for credit loss 383456.60 383456.60
Carrying amount 1575369144.18 2601740991.35
- 184 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 credit loss of other receivables
31/12/202331/12/2022
Expected Lifetime Lifetime Lifetime Lifetime
Credit rating credit loss
rate (%) 12-month ECL
ECL (not ECL ECL ECL
credit- (credit- Total 12-month ECL (not credit- (credit- Total
impaired) impaired) impaired) impaired)
A 0.00-0.10 1575369144.18 - - 1575369144.18 2601740991.35 - - 2601740991.35
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 383456.60 383456.60 - - 383456.60 383456.60
Gross carrying
amount 1575369144.18 - 383456.60 1575752600.78 2601740991.35 - 383456.60 2602124447.95
Provision for
credit loss - - 383456.60 383456.60 - - 383456.60 383456.60
Carrying
amount 1575369144.18 - - 1575369144.18 2601740991.35 - - 2601740991.35
(4) Provision recovery and reversal of credit loss of other receivables
Stage 1 Stage 2 Stage 3
Item 12-month ECL Lifetime ECL Lifetime ECL Total(not credit-impaired) (credit-impaired)
At 1 January 2023 - - 383456.60 383456.60
Balance of other receivables
at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
At 31 December 2023 - - 383456.60 383456.60
(5) Details of bad debt provision
Changes for the year
Effect of
Category 31/12/2022 Provision Recovery or changes in
Charge-off
or write- Other 31/12/2023reversal the scope of off changesconsolidation
Bad debt provision
assessed on an 383456.60 - - - - - 383456.60
individual basis
Bad debt provision
assessed on a portfolio - - - - - - -
basis
Total 383456.60 - - - - - 383456.60
(6) The Company has no recovery or reversal of significant provision for credit loss in the
current year.- 185 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
(7) The Group has no other receivables written off during the year.
(8) The top five balances of other receivables at the end of the year classified by debtor
Proportion Closing
Relationship to total balance of
Name of entity with the Nature Closing balance Aging other provision
Company receivables for credit
(%) loss
Shenzhen Haixing Subsidiary Loan torelated parties 1541029169.74
Within 1 year
1-2 years 97.80 -
Wharf Holdings Hong Kong Subsidiary Leasepayment 15189918.60 Within 1 year 0.96 -
Shunkong Port Subsidiary Loan to Within 1 yearrelated parties 12418184.16 1-2 years 0.79 -
CM International Tech Subsidiary Advances 2467600.00 2-3 years 0.16 -
Shenzhen Shekou Local Taxation
Bureau Third party Others 711772.07
More than 3
years 0.05 -
Total 1571816644.57 99.76 -
- 186 -CHINA MERCHANTS PORT GROUP CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Long-term equity investments
(1) Breakdown of long-term equity investments
Changes for the year
Investee 31/12/2022 Investment income
Reconciliation Cash dividends Closing balance of
Increase Decrease under equity of other Other equity or profit Provision for Others 31/12/2023 provision for
method comprehensive movementsincome declared
impairment impairment
I. Subsidiaries
Shenzhen Chiwan International Freight Agency
Co. Ltd. 5500000.00 - - - - - - - - 5500000.00 -
Shenzhen Chiwan Harbor Container Co. Ltd. 250920000.00 - - - - - - - - 250920000.00 -
Shenzhen Chiwan Port Development Co. Ltd. 206283811.09 - - - - - - - - 206283811.09 -
Wharf Holdings Hong Kong 1070000.00 - - - - - - - - 1070000.00 -
Shenzhen Chiwan Tugboat Co. Ltd. 24000000.00 - - - - - - - - 24000000.00 -
Chiwan Container Terminal Co. Ltd. 421023199.85 - - - - - - - - 421023199.85 -
Shenchiwan Port Affairs 186525000.00 - - - - - - - - 186525000.00 -
Dongguan Shenchiwan Wharf Co. Ltd. 175000000.00 - - - - - - - - 175000000.00 -
Chiwan Shipping (Hong Kong) Limited 1051789.43 - - - - - - - - 1051789.43 -
CM Port (Note 1) 168841768.35 12474393.06 - - - - - - - 181316161.41 -
Zhoushan RoRo 149709800.00 - - - - - - 43605014.00 - 106104786.00 43605014.00
Zhanjiang Port 3381825528.52 - - - - - - - - 3381825528.52 -
CM International Tech (Note 2) 20561075.02 109901500.00 - - - - - - - 130462575.02 -
Sanya Merchants Port Development Co. Ltd. 2040000.00 - - - - - - - - 2040000.00 -
Ports Development (Hong Kong) Limited 29203045326.23 - - - - - - - - 29203045326.23 -
Shunkong Port (Note 3) 50000000.00 144673400.00 - - - - - - - 194673400.00 -
Guangdong Yide Port Co. Ltd. 131866700.00 - - - - - - - - 131866700.00 -
Sub-total 34379263998.49 267049293.06 - - - - - 43605014.00 - 34602708277.55 43605014.00
II. Associates
Ningbo Zhoushan 16228879526.87 - - 966972107.64 18734157.32 -45798686.57 -355122265.53 - - 16813664839.73 -
China Merchants Northeast Asia Development &
Investment Co. Ltd. 1017010205.71 - - 1668941.79 - -144795.94 - - - 1018534351.56 -
China Merchants Bonded Logistics Co. Ltd. 412362918.79 - - 54128341.59 - - -84285525.91 - - 382205734.47 -
Antong Holdings (Note 4) - 892445435.37 - 29869705.60 - 17223.61 - - - 922332364.58 -
Sub-total 17658252651.37 892445435.37 - 1052639096.62 18734157.32 -45926258.90 -439407791.44 - - 19136737290.34 -
III. Joint ventures - -
Yantai Port Group Laizhou Port Co. Ltd. 794153389.74 - - 38645587.47 -280000.00 -1858614.11 -28133178.67 - - 802527184.43 -
Fujian Zhaohang Logistics Management
Partnership 592134266.75 - - 21878659.99 - 714032.74 - - - 614726959.48 -
(Limited Partnership)
Shenzhen Gangteng Internet Technology Co. Ltd.(Note 5) 9809165.14 3750000.00 - -1640538.15 - - - - - 11918626.99 -
Sub-total 1396096821.63 3750000.00 58883709.31 -280000.00 -1144581.37 -28133178.67 - - 1429172770.90 -
Total 53433613471.49 1163244728.43 - 1111522805.93 18454157.32 -47070840.27 -467540970.11 43605014.00 - 55168618338.79 43605014.00
- 187 -CHINA MERCHANTS PORT GROUP CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
2. Long-term equity investments - continued
(1) Details of long-term equity investments - continued
Note 1: Details are set out in Note (XI) 1. (1).Note 2: Details are set out in Note (XI) 2. (1).Note 3: In July and December 2023 the Company and Guangdong Shunkong City Investment
Real Estate Co. Ltd. entered into a capital increase agreement for Shunkong Port in two
parts whereby the two parties agreed to increase the capital by RMB 218751400.00
and RMB 153823600.00 together in accordance with their respective shareholding
ratios of 51% and 49% of which the Company contributed RMB 111563200.00 and
RMB 78450000.00. According to the capital increase agreement the Company paid a
total of RMB 144673400.00 for the capital increase at the end of the year. The
shareholding ratio of the two investors remained unchanged after the capital increase.Note 4: Details are set out in Note (VIII) 14.Note 5: The Company fulfilled the investment agreement in the current year and paid the second
contribution amounting to RMB 3750000.00.
(2) Details of impairment testing of long-term equity investments
The Company recognized a provision for impairment of long-term equity investments
amounting to RMB 43605014.00 based on the share of Zhoushan RoRo's recoverable
amount refer to Note (VIII) 16.2 (7) for details.
3. Operating income and operating costs
Item 2023 2022Income Cost Income Cost
Principal operation - - - -
Other operations 17326885.29 3686411.84 3669891.36 2276202.60
Total 17326885.29 3686411.84 3669891.36 2276202.60
- 188 -CHINA MERCHANTS PORT GROUP CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(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 2023 2022
Income from long-term equity investments under cost method 416405658.26 549150517.02
Income from long-term equity investments under equity
method 1111522805.93 384257363.02
Income from held-for-trading financial assets 49614971.08 120227079.12
Income from investments in other equity instruments 20056500.00 -
Income from disposal of long-term equity investments - -20508.07
Total 1597599935.27 1053614451.09
(2) Income from long-term equity investments under cost method
Investee 2023 2022 Reason for changes
Chiwan Container Terminal Co. Ltd. 149527479.94 166925696.05 Changes in profit distribution of investee
Shenzhen Chiwan Harbor Container Co. Ltd. 111712423.41 173751858.77 Changes in profit distribution of investee
Zhanjiang Port 36552790.18 91862080.91 Changes in profit distribution of investee
Dongguan Shenchiwan Wharf Co. Ltd. 33386741.74 37543998.58 Changes in profit distribution of investee
Dongguan Shenchiwan Port Affairs Co. Ltd. 26519896.50 18111237.23 Changes in profit distribution of investee
Shenzhen Chiwan Tugboat Co. Ltd. 20137075.44 29238925.84 Changes in profit distribution of investee
CM Port 11184689.72 11069965.98 Changes in profit distribution of investee
Shenzhen Chiwan Port Development Co. Ltd. 9751697.73 20415654.72 Changes in profit distribution of investee
CM International Tech 9517336.07 - Changes in profit distribution of investee
Chiwan Shipping (Hong Kong) Limited 7902673.23 - Changes in profit distribution of investee
Shenzhen Chiwan International Freight Agency
Co. Ltd. 212854.30 231098.94 Changes in profit distribution of investee
Total 416405658.26 549150517.02 --
- 189 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
1. BREAKDOWN OF NON-RECURRING PROFIT OR LOSS
Item Amount Remark
Gains or losses on disposal of non-current assets including those charged off for
which provision for impairment of assets has been made 231205985.85
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 149238503.34
on the Company's profit or loss)
Income earned from lending funds to non-financial institutions and recognized
in profit or loss 194897544.80
The excess of attributable fair value of identifiable net assets over the
consideration paid for subsidiaries associates and joint ventures -
Gains or losses on exchange of non-monetary assets -
Gains or losses on entrusted investments or asset management -
Losses on assets due to force majeure e.g. natural disasters -
Gains or losses on debt restructuring -
Lump-sum costs incurred by the enterprises as a result of the discontinuation of
relevant business activities e.g. expenditure for layoff of employees etc. -
Gains from transactions with unfair transaction price -
Net profit or loss of subsidiaries recognized as a result of business combination of
enterprises under common control from the beginning of the period up to the -
business combination date
Gains or losses arising from contingencies other than those related
to normal operating business -
Gains or losses from changes in fair value of financial assets and financial
liabilities held by non-financial enterprises other than effective hedging operation
relating to the Company's normal operations and gains or losses from disposal of 73352800.52
financial assets and financial liabilities
Reversal of provision for accounts receivable that are tested for
impairment individually 52962785.14
Gains or losses on entrusted loans -
Gains or losses from changes in fair value of investment properties that are
subsequently measured using the fair value model -
One-time effect of adjustments in tax laws and accounting laws and regulations
on profit or loss for the period -
Custodian fees earned from entrusted operation -
Share-based payment expenses recognized once due to the cancellation or
modification of equity incentive plans -
For cash-settled share-based payments gains or losses arising from changes
in fair value of employee benefits payable after the vesting date -
Other non-operating income or expenses other than above 12810280.19
Other profit or loss that meets the definition of non-recurring profit or loss -
Tax effects -145340260.29
Effects of minority interests (after tax) -336553661.12
Total 232573978.43
The revised Explanatory Announcement No. 1 on Information Disclosure for Companies Making Public
Offering - Non-recurring Profit or Loss (Revised in 2023) was issued by the China Securities Regulatory
Commission on 22 December 2023 and the effect of the revision on non-recurring profit or loss for the
comparable accounting periods is reflected as a decrease of non-recurring profit or loss by RMB
18600132.64.CHINA MERCHANTS PORT GROUP CO. LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by the Company in accordance with Information
Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and
Disclosure of Return on Net Assets and Earnings per Share (revised in 2010) issued by China Securities
Regulatory Commission.Item Weighted average EPSreturn on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 6.3455 1.4292 1.4292
Net profit attributable to ordinary shareholders after
deducting non-recurring profit or loss 5.9324 1.3362 1.3362CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
3. SUPPLEMENTARY INFORMATION RELATING TO ITEMS IN THE FINANCIAL
STATEMENTS DUE TO RETROSPECTIVE APPLICATION OF ACCOUNTING
POLICIES
Item 31/12/2023 31/12/2022 1/1/2022 Item 31/12/2023 31/12/2022 1/1/2022
Current Assets: Current liabilities:
Cash and bank balances 16079646178.24 13615928739.40 12772349406.77 Short-term borrowings 15714045288.97 7164338366.18 13651452805.36
Held-for-trading financial assets 4568806108.84 2998781599.63 6921831502.55 Notes payable 73461165.82 - 1895987.17
Notes receivable 325150195.09 36395000.00 6081611.95 Accounts payable 691765137.25 811149397.66 843820438.51
Accounts receivable 1103901466.25 1276149689.44 1320577577.81 Receipts in advance 17387537.36 9886531.59 9313166.01
Receivables financing 2001669.46 163766913.10 238429402.71 Contract liabilities 142080101.00 141899551.03 196784525.26
Prepayments 37664552.30 63627425.42 51606794.20 Employee benefits payable 917964606.65 936834718.13 820416415.47
Other receivables 940014994.01 948842094.30 696276595.87 Taxes payable 923053572.50 917933169.09 2162719251.68
Inventories 218898192.87 225122821.48 194920136.12 Other payables 1654622170.02 1755885258.26 2140108341.08
Assets held-for-sale - - 337442757.28 Non-current liabilities due withinone year 6817404289.25 11641223688.95 8268209284.17
Non-current assets due within
one year 17451380.98 902225293.93 102356461.97 Other current liabilities 2143842534.53 3161147525.96 2158497775.85
Other current assets 189673500.87 185903140.53 339684297.41 Total current liabilities 29095626403.35 26540298206.85 30253217990.56
Total current assets 23483208238.91 20416742717.23 22981556544.64 Non-current Liabilities:
Non-current Assets: Long-term borrowings 18227543954.71 12390099177.85 7144839870.89
Long-term receivables 3856466116.99 5661327499.07 6162713861.02 Bonds payable 14287508564.15 19088293099.02 16670872414.14
Long-term equity investments 96666117776.27 92364293919.05 70353451824.52 Including: Preferred shares - - -
Other non-current financial
assets 877576442.83 1745740896.41 809515244.87 Perpetual bonds - - -
Investments in other equity
instruments 157461648.16 171945275.02 180251798.43 Provisions 1001172206.92 948350914.04 1055194906.09
Investment properties 4958374968.79 5123690119.56 5298238414.88 Lease liabilities 3822862202.17 3551315590.31 3422179366.40
Fixed assets 28986538326.35 32033326083.50 31710513230.29 Long-term payables 603009921.91 639095931.43 588681492.63
Construction in progress 2909817281.46 2413844407.64 2557584953.92 Long-term employee benefitspayable 85590059.41 35365156.43 24247302.42
Right-of-use assets 9441668311.22 9342642222.33 8743077542.19 Deferred income 1024776557.73 1031273189.74 1075957884.91
Intangible assets 18073062184.72 19277065115.61 18475412380.93 Deferred tax liabilities 4659638104.37 4855019835.33 4552418519.70
Development expenditure 50990153.18 17412196.16 82391225.85 Other non-current liabilities 179634263.73 186383117.00 163065578.53
Goodwill 6493002246.44 6411426891.09 6024160942.07 Total non-current liabilities 43891735835.10 42725196011.15 34697457335.71
Long-term prepaid expenses 993793505.29 986356904.90 975994541.52 TOTAL LIABILITIES 72987362238.45 69265494218.00 64950675326.27
Deferred tax assets 415063477.03 434498820.95 454644724.39 Owners' equity:
Other non-current assets 1194155989.62 1186789378.79 1231092952.69 Share capital 2499074661.00 2499074661.00 1922365124.00
Total non-current assets 175074088428.35 177170359730.08 153059043637.57 Including: Preferred shares - - -
Perpetual bonds - - -
Capital reserve 37076846803.06 34751640835.25 23592702758.70
Less: Treasury shares - - -
Other comprehensive income -903626594.35 -689553619.86 -890125318.18
Special reserve 34003994.41 26358259.97 9184429.12
Surplus reserve 1095980563.68 1001917449.15 961182562.00
Unappropriated profit 19045313519.75 16701988301.14 14226931466.66
Total equity attributable to equity
holders of the Company 58847592947.55 54291425886.65 39822241022.30
Minority interests 66722341481.26 74030182342.66 71267683833.64
TOTAL OWNERS' EQUITY 125569934428.81 128321608229.31 111089924855.94
TOTAL ASSETS 198557296667.26 197587102447.31 176040600182.21 TOTAL LIABILITIES ANDOWNERS' EQUITY 198557296667.26 197587102447.31 176040600182.21
沪公网安备31011802005267号
