CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
CONTENTS PAGE(S)
AUDITOR'S REPORT 1 - 7
CONSOLIDATED BALANCE SHEET 8- 10
BALANCE SHEET OF THE COMPANY 11 - 13
CONSOLIDATED INCOME STATEMENT 14 - 15
INCOME STATEMENT OF THE COMPANY 16
CONSOLIDATED CASH FLOW STATEMENT 17
CASH FLOW STATEMENT OF THE COMPANY 18
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 19 - 20
THE COMPANY'S STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 21 - 22
NOTES TO THE FINANCIAL STATEMENTS 23 - 203AUDITOR'S REPORT毕马威华振审字第2507318号
To all the shareholders of China Merchants Port Group Co. Ltd.I. Audit Opinion
We have audited the accompanying financial statements of China Merchants Port Group Co. Ltd.("China Merchants Port Group") which comprise the consolidated and company balance sheets as at 31
December 2024 the consolidated and company income statements the consolidated and company cash
flow statements the consolidated and company statements of changes in shareholders' equity for the
year then ended and notes to the financial statements.In our opinion the accompanying financial statements present fairly in all material respects the
consolidated and company financial position of China Merchants Port Group as at 31 December 2024
and the consolidated and company financial performance and cash flows of China Merchants Port Group
for the year then ended in accordance with Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China.II. Basis for the Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
China Merchants Port Group in accordance with China Code of Ethics for Certified Public Accountants
(“the Code”) and we have fulfilled our other ethical responsibilities in accordance with the Code. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.- 1 -AUDITOR'S REPORT - continued毕马威华振审字第2507318号
III. Key Audit Matters
Key audit matters are those matters that in our professional judgement were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole and in forming our opinion thereon and we do not
provide a separate opinion on these matters.Subsequent measurement of long-term equity investments in associates
Refer to Note (IV) 14 accounting policy to the financial statements Note (VIII) 12 to the
consolidated financial statements and Note (XX) 2 to China Merchants Port Group's financial
statements.How the matter was addressed in our
The Key Audit Matter
audit
As at 31 December 2024 the carrying amount of Our audit procedures to the key audit matter
China Merchants Port Group's long-term equity included the following:
investments in associates amounts to RMB
Understand and evaluate the design and
90710156849.66 accounting for 70.78% of the
operation effectiveness of internal control
total shareholder's equity. For the year ended 31
over key financial statements related to
December 2024 the investment income from
the subsequent measurement of long-term
associates recognized under the equity method
equity investments of associated
amounts to RMB 6073558615.46 accounting
enterprises;
for 68.41% of the consolidated net profit.Evaluate the independence and
Since the amount of income from investments in
professional competence of auditors of
associates recognized by China Merchants Port
important joint ventures;
Group for the year is significant we determine
the above-mentioned subsequent measurement Participate in the risk assessment process
of the long-term equity investments in associates of important joint venture auditors based
as a key audit matter of the consolidated financial on the purpose of group audit and
statements. evaluate whether the audit evidence
obtained by the risk assessment
procedures implemented by them can
provide an appropriate basis for
identifying and evaluating the risk of
material misstatement (RMM) of the
group's financial statements;
Communicate with important joint
venture auditors on matters related to the
assessment of risk of material
misstatement (RMM) of the Group's
financial statements and evaluate the
appropriateness of further audit
procedures they have implemented to
address risk of material misstatement
(RMM) of the Group's financial
statements;
- 2 -AUDITOR'S REPORT - continued毕马威华振审字第2507318号
III. Key Audit Matters - continued
How the matter was addressed in our
The Key Audit Matter
audit
Communicate with the auditors of
important joint ventures about the
important matters that may affect the
consolidated financial statements found
during the audit the procedures
implemented and the conclusions
reached;
Evaluate the appropriateness of the
management's consolidated adjustment to
the financial information of the joint
venture based on the accounting policies
of China Merchants Harbor Group
including checking the supporting
documents of the relevant difference
adjustment and the accuracy of the
subsequent measurement of the long-term
equity investments of the joint venture
based on the adjustment.Goodwill impairment
Refer to Note (IV) 7 accounting policy to the financial statements Note (VIII) 20 to the
consolidated financial statements.How the matter was addressed in our
The Key Audit Matter
audit
As at 31 December 2024 the carrying amount of Our audit procedures to the key audit matter
the goodwill presented in the consolidated included the following:
financial statements of China Merchants Port
Understand and evaluate the design and
Group is RMB 5933310929.34.operation effectiveness of internal control
over key financial statements related to
goodwill impairment;
Evaluate whether the management's
identification of assets groups the method
of allocating goodwill to assets groups or
assets group portfolios and the method
used to determine the recoverable amount
meet the requirements of the Accounting
Standards for Business Enterprises;
- 3 -AUDITOR'S REPORT - continued毕马威华振审字第2507318号
III. Key Audit Matters - continued
How the matter was addressed in our
The Key Audit Matter
audit
The management of China Merchants Port Based on our understanding of the Based
Group conducts impairment testing on goodwill on our understanding of the industry in
at the end of each year. Management compares which China Merchants Port Group is
the book value of the assets group or assets group located and taking into account the
combination containing the apportioned historical operation of relevant asset
goodwill with its recoverable amount to groups and other external information
determine whether it is necessary to withdraw the evaluate the rationality of the revenue
impairment. The recoverable amount is the growth rate adopted by management in
higher of the net amount of the fair value of the determining the present value of the
assets group or the combination of assets groups expected future cash flow;
minus the disposal expenses and the present
Use the work of our valuation experts to
value of the estimated future cash flow. The
evaluate the appropriateness of the
determination of the present value of expected
valuation method and the reasonableness
future cash flows involves significant
of the discount rate used by the
management judgments especially the
management to determine the present
estimation of key assumptions such as revenue
value of the estimated future cash flow of
growth rate and discount rate.the relevant asset group;
Since the book value of goodwill is materiality to
the financial statements and the impairment Carry out sensitivity analysis on the key
testing of goodwill involves management's major assumptions of revenue growth rate and
judgments and estimates these judgments are discount rate adopted by management
inherently uncertain and may be affected by evaluate the possible impact of changes in
management bias's bias we recognize the key assumptions on the evaluation results
impairment of goodwill as a key audit matters. of goodwill impairment and whether
there is any sign of management bias;
Compare the key assumptions adopted by
management when preparing the present
value of estimated cash flow in the
previous year with the actual situation of
the current year to evaluate whether there
is any sign of management bias;
Evaluate whether the disclosure of
goodwill impairment and key
assumptions adopted in the financial
statements meet the requirements of the
Accounting Standards for Business
Enterprises.- 4 -AUDITOR'S REPORT - continued毕马威华振审字第2507318号
IV. Other Information
China Merchants Port Group’s management is responsible for the other information. The other
information comprises all the information included in 2024 annual report of China Merchants Port Group
other than the financial statements and our auditor's report thereon.Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the Accounting Standards for Business Enterprises and for the design implementation
and maintenance of such internal control necessary to enable that the financial statements are free from
material misstatement whether due to fraud or error.In preparing the financial statements management is responsible for assessing China Merchants Port
Group’s ability to continue as a going concern disclosing as applicable matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate China
Merchants Port Group or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing China Merchants Port Group’s financial
reporting process.- 5 -AUDITOR'S REPORT - continued毕马威华振审字第2507318号
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement whether due to fraud or error and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.Misstatements can arise from fraud or error and are considered material if individually or in the
aggregate they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.As part of an audit in accordance with CSAs we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
* Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error as fraud may involve
collusion forgery intentional omissions misrepresentations or the override of internal control.* Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances.* Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.* Conclude on the appropriateness of management’s use of the going concern basis of accounting
and based on the audit evidence obtained whether a material uncertainty exists related to events or
conditions that may cast significant doubt on China Merchants Port Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or if such disclosures are inadequate
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However future events or conditions may cause China Merchants Port Group to cease
to continue as a going concern.* Evaluate the overall presentation structure and content of the financial statements including the
disclosures and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.* Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within China Merchants Port Group to express an opinion on the financial statements.We are responsible for the direction supervision and performance of the group audit. We remain solely
responsible for our audit opinion.- 6 -AUDITOR'S REPORT - continued毕马威华振审字第2507318号
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
We communicate with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable related
safeguards.From the matters communicated with those charged with governance we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when in extremely rare circumstances we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s
Republic of China
王 洁 (Engagement Partner)
Beijing China 吴惠煌
1 April 2025
- 7 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2024
Consolidated Balance Sheet
RMB
Item Notes 31/12/2024 31/12/2023
Current Assets:
Cash and bank balances (VIII)1 16630400701.13 16079646178.24
Including: Cash deposited in the finance company (XV)6(1) 4745991554.35 2090078155.93
Financial assets held for trading (VIII)2 5685135472.01 4568806108.84
Derivative financial assets - -
Bills receivable (VIII)3 270127883.63 325150195.09
Accounts receivable (VIII)4 1193408383.78 1103901466.25
Receivables under financing (VIII)5 - 2001669.46
Prepayments (VIII)6 59177117.22 37664552.30
Funds receivable under centralised management - -
Other receivables (VIII)7 1166499343.90 940014994.01
Including: Dividends receivable (VIII)7 554387723.94 343386866.06
Inventories (VIII)8 269958020.34 218898192.87
Including: Raw materials 260819412.56 215862884.60
Goods in stock (finished products) 4683965.30 2520205.91
Contract assets - -
Assets held for sale - -
Non-current assets due within one year (VIII)9 34997992.08 17451380.98
Other current assets (VIII)10 251697812.77 189673500.87
Total current assets 25561402726.86 23483208238.91
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables (VIII)11 3777373574.70 3856466116.99
Long-term equity investments (VIII)12 100018029894.96 96666117776.27
Investments in other equity instruments (VIII)13 139451887.05 157461648.16
Other non-current financial assets (VIII)14 28524600.31 877576442.83
Investment properties (VIII)15 3288690070.60 4958374968.79
Fixed assets (VIII)16 30689217791.45 28986538326.35
Including: Fixed assets - cost 55832500023.64 51987700820.76
Accumulated depreciation 24930618296.33 22787694400.09
Provision for impairment of fixed assets 213290383.06 213504483.08
Construction in progress (VIII)17 3311109996.59 2909817281.46
Right-of-use assets (VIII)18 8957352063.54 9441668311.22
Intangible assets (VIII)19 17335082422.84 18073062184.72
Development costs (IX)2 63395053.69 50990153.18
Goodwill (VIII)20 5933310929.34 6493002246.44
Long-term deferred expenses (VIII)21 940404479.94 993793505.29
Deferred tax assets (VIII)22 365481207.77 415063477.03
Other non-current assets (VIII)23 1109025181.81 1194155989.62
Total non-current assets 175956449154.59 175074088428.35
TOTAL ASSETS 201517851881.45 198557296667.26
The accompanying notes form part of the financial statements.- 8 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2024
Consolidated Balance Sheet - continued
RMB
Item Notes 31/12/2024 31/12/2023
Current liabilities:
Short-term borrowings (VIII)24 12791242141.69 15714045288.97
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable (VIII)25 1536194.00 73461165.82
Accounts payable (VIII)26 785830532.33 691765137.25
Advance payments received (VIII)27 14576237.84 17387537.36
Contract liabilities (VIII)28 267888272.62 142080101.00
Employee benefits payable (VIII)29 1168592349.15 917964606.65
Including: Payroll payable 1126682376.20 883913277.13
Welfare payable - -
Taxes payable (VIII)30 725165726.32 923053572.50
Including: Taxes payable 714248068.55 914917451.47
Other payables (VIII)31 1923980312.98 1654622170.02
Including: Dividends payable (VIII)31 132334744.28 111897214.27
Liabilities held for sale - -
Non-current liabilities due within one year (VIII)32 10506682795.60 6817404289.25
Other current liabilities (VIII)33 4061201760.72 2143842534.53
Total current liabilities 32246696323.25 29095626403.35
Non-current Liabilities:
Long-term borrowings (VIII)34 15582593255.65 18227543954.71
Bonds payable (VIII)35 13875559119.52 14287508564.15
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities (VIII)36 1387206990.51 1001172206.92
Long-term payables (VIII)37 3204582672.75 3822862202.17
Long-term employee benefits payable (VIII)38 655658044.98 603009921.91
Provisions (VIII)39 159435795.50 85590059.41
Deferred income (VIII)40 1268975316.61 1024776557.73
Deferred tax liabilities (VIII)22 4795985333.59 4659638104.37
Other non-current liabilities (VIII)41 182720254.84 179634263.73
Total non-current liabilities 41112716783.95 43891735835.10
TOTAL LIABILITIES 73359413107.20 72987362238.45
The accompanying notes form part of the financial statements.- 9 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2024
Consolidated Balance Sheet - continued
RMB
Item Notes 31/12/2024 31/12/2023
Shareholders' equity:
Share capital (VIII)42 2501308481.00 2499074661.00
Including: State capital - -
State-owned corporate capital 2236269506.00 2264090797.00
Collective capital - -
Private capital 240947591.00 218857094.00
Foreign capital 24091384.00 16126770.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve (VIII)43 37362981831.67 37076846803.06
Less: Treasury shares 50559789.14 -
Other comprehensive income (VIII)44 -1558381237.45 -903626594.35
Including: Translation difference of financial statements
-1030995258.63-453976318.25
denominated in foreign currencies
Specific reserve (VIII)45 40074647.27 34003994.41
Surplus reserve (VIII)46 1249537330.50 1095980563.68
Including: Legal reserve 1249537330.50 1095980563.68
Arbitrary accumulation fund - -
Retained earnings (VIII)47 21957778579.11 19045313519.75
Total equity attributable to shareholders of the Company 61502739842.96 58847592947.55
Non-controlling interests 66655698931.29 66722341481.26
TOTAL SHAREHOLDERS' EQUITY 128158438774.25 125569934428.81
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 201517851881.45 198557296667.26
The accompanying notes form part of the financial statements.The financial statements were signed by the following:
________X__u_ S__o_n_g_ _______ _____H__u_an_g_ _Z_h_e_n_z_h_o_u_ ____ __________L_i_u_ S_h_i_x_ia_ _ ________
Legal Representative Chief Financial Officer Head of Accounting Department
- 10 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2024
Balance Sheet of the Company
RMB
Item Notes 31/12/2024 31/12/2023
Current Assets:
Cash and bank balances 4051544937.38 3281038218.84
Including: Cash deposited in the finance company 2738121884.17 514219595.31
Financial assets held for trading 2902402602.73 1500517808.22
Derivative financial assets - -
Bills receivable - -
Accounts receivable - -
Receivables under financing - -
Prepayments 879205.65 10075055.61
Funds receivable under centralised management - -
Other receivables (XX)1 2413442661.68 1742461670.32
Including: Dividends receivable (XX)1 965690879.89 167092526.14
Inventories - -
Including: Raw materials - -
Goods in stock (finished products) - -
Contract assets - -
Assets held for sale - -
Non-current assets due within one year - -
Other current assets 8783543.80 10882675.96
Total current assets 9377052951.24 6544975428.95
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables 9546673.32 9391615.50
Long-term equity investments (XX)2 56009282172.30 55168618338.79
Investments in other equity instruments 130125719.67 148088364.25
Other non-current financial assets - -
Investment properties - -
Fixed assets 25785696.83 27343639.28
Including: Fixed assets - cost 33196561.49 32478382.04
Accumulated depreciation 7410864.66 5134742.76
Provision for impairment of fixed assets - -
Construction in progress 607774.34 607774.34
Right-of-use assets - -
Intangible assets 55685403.63 54876218.77
Development costs 53435391.51 38923289.23
Goodwill - -
Long-term deferred expenses 287141.10 665319.42
Deferred tax assets - 928465.21
Other non-current assets - -
Total non-current assets 56284755972.70 55449443024.79
TOTAL ASSETS 65661808923.94 61994418453.74
The accompanying notes form part of the financial statements.- 11 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2024
Balance Sheet of the Company - continued
RMB
Item Notes 31/12/2024 31/12/2023
Current Liabilities:
Short-term borrowings 136552893.75 -
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable - -
Accounts payable - -
Advance payments received - 5358074.44
Contract liabilities - -
Employee benefits payable 57295154.90 45188572.96
Including: Payroll payable 57135815.24 45032983.18
Welfare payable - -
Taxes payable 2967430.48 1046270.66
Including: Taxes payable 2967430.48 1046270.66
Other payables 413758779.36 376323201.93
Including: Dividends payable 34577578.12 34577578.12
Liabilities held for sale - -
Non-current liabilities due within one year 3126770180.31 5119243623.45
Other current liabilities 4020214246.58 2007190136.98
Total current liabilities 7757558685.38 7554349880.42
Non-current Liabilities:
Long-term borrowings 7966000000.00 7979000000.00
Bonds payable 6000000000.00 3000000000.00
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities - -
Long-term payables - -
Long-term employee benefits payable - -
Provisions - -
Deferred income 11000000.00 -
Deferred tax liabilities 37000434.40 41948362.13
Other non-current liabilities - -
Total non-current liabilities 14014000434.40 11020948362.13
TOTAL LIABILITIES 21771559119.78 18575298242.55
The accompanying notes form part of the financial statements.- 12 -CHINA MERCHANTS PORT GROUP CO. LTD.As at 31 DECEMBER 2024
Balance Sheet of the Company - continued
RMB
Item Notes 31/12/2024 31/12/2023
Shareholders’ equity
Share capital 2501308481.00 2499074661.00
Including: State capital - -
State-owned corporate capital 2236269506.00 2264090797.00
Collective capital - -
Private capital 240947591.00 218857094.00
Foreign capital 24091384.00 16126770.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve 37773833882.62 37704543586.11
Less: Treasury shares 50559789.14 -
Other comprehensive income 130414442.07 120520832.83
Including: Translation difference of financial statements
--
denominated in foreign currencies
Specific reserve - -
Surplus reserve 1249537330.50 1095980563.68
Including: Legal reserve 1249537330.50 1095980563.68
Arbitrary accumulation fund - -
Retained earnings 2285715457.11 1999000567.57
Total shareholders’ equity 43890249804.16 43419120211.19
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 65661808923.94 61994418453.74
The accompanying notes form part of the financial statements.- 13 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Consolidated Income Statement
RMB
Item Notes 2024 2023
I. Total operating income (VIII)48 16130778028.24 15750475780.22
Including: Operating income 16130778028.24 15750475780.22
II. Total operating costs 13409015440.91 13470678289.53
Less: Operating costs (VIII)48 9196016692.35 9318186707.75
Taxes and surcharges (VIII)49 332333763.15 312998026.19
Selling and distribution expenses - -
General and administrative expenses (VIII)50 1821544282.18 1776641155.38
Research and development expenses (VIII)51 201755066.36 223739072.07
Financial expenses (VIII)52 1857365636.87 1839113328.14
Including: Interest expenses 2215219118.52 2238152796.66
Interest income 477430320.41 497593921.36
Net exchange loss (“-” for gains) 109256513.08 85519920.28
Add: Other income (VIII)53 185410303.29 224389260.77
Investment income (“-” for losses) (VIII)54 6546996531.50 6348676940.80
Including: Income from investments in associates
(VIII)54 6441005613.25 5979007585.96
and joint ventures
Income arising from derecognition of
--
financial assets measured at amortised cost
Net exposure hedging income (“-” for losses) - -
Gains from changes in fair value (“-” for losses) (VIII)55 390232365.15 73352800.52
Reversal of credit impairment (VIII)56 272994309.08 37284041.18
Impairment losses (“-” for losses) (VIII)57 -8880788.88 -191297311.28
Gains from asset disposals (“-” for losses) (VIII)58 34062395.75 36759532.61
The accompanying notes form part of the financial statements.- 14 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Consolidated Income Statement - continued
RMB
Item Notes 2024 2023
III. Operating profit 10142577703.22 8808962755.29
Add: Non-operating income (VIII)59 59018655.32 87302024.12
Including: Government grants - -
Less: Non-operating expenses (VIII)60 70252101.73 97072840.72
IV. Profit before income tax 10131344256.81 8799191938.69
Less: Income tax expenses (VIII)63 1252837946.90 1303579852.93
V. Net profit for the year 8878506309.91 7495612085.76
(I) Net profit classified by continuity of operations
1. Net profit from continuing operation 8878506309.91 7495612085.76
2. Net profit from discontinued operation - -
(II) Net profit classified by ownership
1. Shareholders of the Company 4516301317.16 3571800762.16
2. Non-controlling interests 4362204992.75 3923811323.60
VI. Other comprehensive income net of tax (VIII)44 -1529342680.40 209856768.77
(I) Other comprehensive income (net of tax) attributable to
-654754643.10-214072974.49
shareholders of the Company
1. Items that will not be reclassified to profit or loss -102848966.14 -73874071.89
(1) Remeasurement of defined benefit plan -24453072.38 7480103.34
(2) Other comprehensive income recognised under the equity
-64909867.66-83841725.07
method
(3) Changes in fair value of investments in other equity
-13486026.102487549.84
instruments
(4) Changes in fair value of entity’s own credit risk - -
(5) Others - -
2. Item that reclassified to profit or loss -551905676.96 -140198902.60
(1) Other comprehensive income recognised under the equity
25113263.42-366028318.84
method
(2) Changes in fair value of other debt investments - -
(3) Amount of financial assets reclassified into other
--
comprehensive income
(4) Credit losses of other debt investments - -
(5) Cash flow hedge reserve (effective part of cash flow
--
hedging profit and loss)
(6) Translation differences arising from translation of foreign
-577018940.38225829416.24
currency financial statements
(7) Others - -
(II) Other comprehensive income (net of tax) attributable to
-874588037.30423929743.26
non-controlling interests
VII. Total comprehensive income for the year 7349163629.51 7705468854.53
(I) Attributable to shareholders of the Company 3861546674.06 3357727787.67
(II) Attributable to non-controlling interests 3487616955.45 4347741066.86
VIII. Earnings per share
(I) Basic earnings per share (RMB/share) 1.81 1.43
(II) Diluted earnings per share (RMB/share) 1.81 1.43
The accompanying notes form part of the financial statements.- 15 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Income Statement of the Company
RMB
Item Notes 2024 2023
I. Total operating income (XX)3 18456183.80 17326885.29
Less: Operating costs (XX)3 3739443.84 3686411.84
Taxes and surcharges 1304373.74 2161621.42
Selling and distribution expenses - -
General and administrative expenses 157158232.51 167273393.24
Research and development expenses 17042748.71 14046526.98
Financial expenses 406958438.88 397006521.97
Including: Interest expenses 483982034.35 482413617.32
Interest income 85684756.27 89862634.06
Net exchange loss (“-” for losses) 2351741.58 2296890.14
Add: Other income 397379.05 206131.06
Investment income (“-” for losses) (XX)4 2453196389.65 1597599935.27
Including: Income from investments in associates
(XX)4 1154581593.08 1111522805.93
and joint ventures
Income arising from derecognition of
--
financial assets measured at amortised cost
Net exposure hedging income (“-” for losses) - -
Gains from changes in fair value (“-” for losses) 4999863.00 -48217517.53
Reversal of credit impairment - -
Impairment losses (“-” for losses) - -43605014.00
Gains from asset disposals (“-” for losses) -9551.52 -
II. Operating profit 1890837026.30 939135944.64
Add: Non-operating income 185319.67 18698.11
Including: Government grants - -
Less: Non-operating expenses - 104998.04
III. Profit before income tax 1891022345.97 939049644.71
Less: Income tax expenses 471198.63 -1581500.55
IV. Net profit for the year 1890551147.34 940631145.26
Net profit from continuing operations (“-” for net loss) 1890551147.34 940631145.26
Net profit from discontinued operations (“-” for net loss) - -
V. Other comprehensive income net of tax 9893609.24 20995146.80
(I) Items that will not be reclassified to profit or loss -14557437.08 3661309.41
1. Remeasurement of the defined benefit plan - -
2. Other comprehensive income recognised
-1085453.651120319.93
under the equity method
3. Changes in fair value of investments in other equity
-13471983.432540989.48
instruments
4. Changes in fair value of entity’s own credit risk - -
5. Others - -
(II) Items that may be reclassified to profit or loss 24451046.32 17333837.39
1. Other comprehensive income recognised
24451046.3217333837.39
under the equity method
2. Changes in fair value of other debt investments - -
3. Amount of financial assets reclassified into other
--
comprehensive income
4. Credit losses of other debt investments - -
5. Cash flow hedge reserve (effective part of cash flow hedging
--
profit and loss)
6. Translation differences arising from translation of foreign
--
currency financial statements
7. Others - -
VI. Total comprehensive income for the year 1900444756.58 961626292.06
The accompanying notes form part of the financial statements.- 16 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Consolidated Cash Flow Statement
RMB
Item Notes 2024 2023
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 16589207291.70 16019658434.90
Refund of taxes 180073212.01 53272648.95
Proceeds from other operating activities (VIII)66(1) 1413169094.11 927564019.09
Sub-total of cash inflows 18182449597.82 17000495102.94
Payment for goods and services 4334345500.75 4550256851.25
Payment to and for employees 3464632790.50 3598624870.64
Payment of various taxes 1594215474.70 1418779686.67
Payment for other operating activities (VIII)66(1) 776043007.47 853227059.21
Sub-total of cash outflows 10169236773.42 10420888467.77
Net cash inflow from operating activities (VIII)67(1) 8013212824.40 6579606635.17
II. Cash flows from investing activities:
Proceeds from disposal of investments 27563331868.18 28430740038.14
Investment returns received 2945983531.55 2329944728.79
Net proceeds from disposal of fixed assets intangible assets and
63168477.18144845803.86
other long-term assets
Net proceeds from disposal of subsidiaries and other business
(VIII)66(2) - 1683385533.43
units
Proceeds from other investing activities (VIII)66(2) 16260626.10 3164955303.27
Sub-total of cash inflows 30588744503.01 35753871407.49
Payment for acquisition of fixed assets intangible assets and
1945061261.661929374936.21
other long-term assets
Payment for acquisition of investments 27610855675.82 29974648554.87
Net payment for acquisition of subsidiaries and other business
(VIII)67(3) 293358563.60 -
units
Payment for other investing activities (VIII)66(2) 261140547.34 82663303.33
Sub-total of cash outflows 30110416048.42 31986686794.41
Net cash inflow from investing activities 478328454.59 3767184613.08
III. Cash flows from financing activities:
Proceeds from investors 76758234.49 217520934.61
Including: Proceeds from non-controlling shareholders of
43561800.00217520934.61
subsidiaries
Proceeds from borrowings 26764844974.84 35416872247.55
Proceeds from other financing activities (VIII)66(3) 55862550.05 334754229.63
Sub-total of cash inflows 26897465759.38 35969147411.79
Repayments of borrowings 27301766289.39 31919051211.87
Payment for dividends profit distributions or interest (VIII)67(4) 6961913964.29 5167695546.01
Including: Dividends and profits paid to
3553580816.501955677172.68
non-controlling shareholders of subsidiaries
Payment for other financing activities (VIII)66(3) 539924528.35 6867093830.32
Sub-total of cash outflows 34803604782.03 43953840588.20
Net cash outflow from financing activities -7906139022.65 -7984693176.41
IV. Effect of foreign exchange rate changes on cash
-88946332.5389206087.64
and cash equivalents
V. Net increase in cash and cash equivalents 496455923.81 2451304159.48
Add: Cash and cash equivalents at the beginning of the year (VIII)67(1) 16018613631.10 13567309471.62
VI. Cash and cash equivalents at the end of the year (VIII)67(2) 16515069554.91 16018613631.10
The accompanying notes form part of the financial statements.- 17 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Cash Flow Statement of the Company
RMB
Item Notes 2024 2023
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services - -
Refunds of taxes 4722220.72 1576989.49
Proceeds from other operating activities 465774682.36 204317795.73
Sub-total of cash inflows 470496903.08 205894785.22
Payment for goods and services 105600.00 142500.00
Payment to and for employees 99220574.59 111864640.42
Payment of various taxes 548632.16 2203522.03
Payment for other operating activities 420429917.05 197101786.33
Sub-total of cash outflows 520304723.80 311312448.78
Net cash outflow from operating activities -49807820.72 -105417663.56
II. Cash flows from investing activities:
Proceeds from disposal of investments 10500000000.00 11200000000.00
Investment returns received 922093300.17 934979575.11
Net proceeds from disposal of fixed assets intangible assets and
4620.00-
other long-term assets
Net proceeds from disposals of subsidiaries and
--
other business units
Proceeds from other investing activities 2105669483.62 1948842841.79
Sub-total of cash inflows 13527767403.79 14083822416.90
Payment for acquisition of fixed assets intangible assets and
18200422.4423594300.69
other long-term assets
Payment for acquisition of investments 11945339800.00 11589128994.69
Net payment for acquisition of subsidiaries and other -
-
business units
Payment for other investing activities 1990013432.08 890011664.40
Sub-total of cash outflows 13953553654.52 12502734959.78
Net cash (outflow)/inflow from investing activities -425786250.73 1581087457.12
III. Cash flows from financing activities:
Proceeds from investors 33196434.49 -
Proceeds from borrowings 14361983943.48 12250000000.00
Proceeds from other financing activities 11034623.06 6728017.13
Sub-total of cash inflows 14406215001.03 12256728017.13
Repayments of borrowings 11207000000.00 12125000000.00
Payment for dividends or interest 1920172028.00 1650693345.10
Payment for other financing activities 68463301.09 9832313.92
Sub-total of cash outflows 13195635329.09 13785525659.02
Net cash inflow/(outflow) from financing activities 1210579671.94 -1528797641.89
IV. Effect of foreign exchange rate changes on cash
312670.57176979.73
and cash equivalents
V. Net increase in cash and cash equivalents
735298271.06-52950868.60
(“-” for net decrease)
Add: Cash and cash equivalents at the beginning of the year 3280985718.84 3333936587.44
VI. Cash and cash equivalents at the end of the year 4016283989.90 3280985718.84
The accompanying notes form part of the financial statements.- 18 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Consolidated Statement of Changes in Shareholders' Equity
RMB
2024
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
difference of
Item Less: Other Non-controlling
financial Total
Share capital Capital reserve Treasury comprehensive Specific reserve Surplus reserve Retained earnings Subtotal interests
statements
Preference Perpetual shares income
others denominated in
shares bonds foreign
currencies
I. Balance at the end of the previous year 24907461.0 - - 37-0 76846803.06 - -903626594.35 -453976318.25 340394.1 1095980563.68 19045313519.75 58847592947.55 66722341481.26 125569934428.81
Add: Changes in accounting policies - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Business combination involving entities
--------------
under common control
Others - - - - - - - - - - - - - -
II. Balance at the beginning of the year 24907461.0 - - 37-0 76846803.06 - -903626594.35 -453976318.25 340394.1 1095980563.68 19045313519.75 58847592947.55 66722341481.26 125569934428.81
III. Changes in equity during the year 23820. - - - 286135028.61 50978.14 -654754643.10 -577018940.38 607652.8 1535676.82 2912465059.36 2655146895.41 -66642549.97 2588504345.44
(I) Total comprehensive income - - - - - - -654754643.10 -577018940.38 - 4- 516301317.16 3861546674.06 3487616955.45 7349163629.51
(II) Shareholders’ contributions of capital 23820. - - - 286135028.61 50978.14 - - - - - 237809059.47 56472428.06 294281487.53
1. Contribution by ordinary shareholders 23820. - - - 3951503.24 - - - - - - 41749323.24 43561800.00 8531123.24
2. Contribution by holders of other equity
--------------
instruments
3. Equity-settled share-based payments - - - - -6138284.56 - - - - - - -6138284.56 -1909854.96 -8048139.52
4. Others - - - - 252757809.93 50978.14 - - - - - 202198020.79 14820483.02 217018503.81
(III) Appropriation of profits - - - - - - - - - 1535676.82 -1603836257.80 -1450279490.98 -3609778395.68 -5060057886.66
1. Appropriation for surplus reserve - - - - - - - - - 1535676.82 -153556766.82 - - -
Including: Legal reserve - - - - - - - - - 1535676.82 -153556766.82 - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - -1- 450279490.98 -1450279490.98 -3554586317.66 -5004865808.64
3. Others - - - - - - - - - - - - -55192078.02 -55192078.02
(IV) Transfers within equity - - - - - - - - - - - - - -
1. Share capital increased by capital reserve -
-------------
transfer
2. Share capital increased by surplus reserve -
-------------
transfer
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - - - -
4. Changes arising from defined benefit plan -
-------------
transferred to retained earnings
5. Transfer of other comprehensive income -
-------------
to retained earnings
6. Others - - - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - 607652.8 - - 607652.86 -953537.80 51715.06
1. Appropriation during the year - - - - - - - - 5921079.71 - - 5921079.71 58293123.14 117503902.85
2. Utilisation during the year - - - - - - - - -53140126.85 - - -53140126.85 -59246660.94 -112386787.79
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the year 2501308481.0 - - 37-3 62981831.67 50978.14 -1558381237.45 -1030995258.63 4074647.2 1249537330.50 21957778579.11 61502739842.96 66655698931.29 128158438774.25
- 19 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
2023
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
difference of
Item Less: Other Non-controlling
financial Total
Share capital Capital reserve Treasury comprehensive Specific reserve Surplus reserve Retained earnings Subtotal interests
statements
Preference perpetual shares income
others denominated in
shares bonds foreign
currencies
I. Balance at the end of the previous year 24907461.0 - - 34-7 51640835.25 - -691536248.4 -681788363.07 26358259.7 1001917449.15 16679688347.09 54267143304.02 73994641893.21 128261785197.23
Add: Changes in accounting policies - - - - - - 198268.5 198268.5 - - 22299954.05 24282582.63 35540449.45 59823032.08
Corrections of prior period errors - - - - - - - - - - - - - -
Business combination involving entities
--------------
under common control
Others - - - - - - - - - - - - - -
II. Balance at the beginning of the year 24907461.0 - - 34-7 51640835.25 - -68953619.86 -679805734.49 26358259.7 1001917449.15 16701988301.14 54291425886.65 74030182342.66 128321608229.31
III. Changes in equity during the year - - - -2 325205967.81 - -214072974.49 25829416.24 7645734. 9406314.53 2343325218.61 4556167060.90 -7307840861.40 -2751673800.50
(I) Total comprehensive income - - - - - - -214072974.49 25829416.24 - -3 571800762.16 3357727787.67 4347741066.86 7705468854.53
(II) Shareholders’ contributions of capital - - - -2 325205967.81 - - - -317684.31 - -1883909.97 2323004373.53 -9190432492.89 -6867428119.36
1. Contribution by ordinary shareholders - - - - - - - - - - - - 685424826.14 685424826.14
2. Contribution by holders of
-------------4222148460.84-4222148460.84
other equity instruments
3. Equity-settled share-based payments - - - - 105318.36 - - - - - - 105318.36 52302.3 1576490.68
4. Others - - - -2 324152779.45 - - - -317684.31 - -1883909.97 2321951185.17 -5654232160.51 -3332280975.34
(III) Appropriation of profits - - - - - - - - - 9406314.53 -1226591633.58 -1132528519.05 -2477802768.49 -3610331287.54
1. Appropriation for surplus reserve - - - - - - - - - 9406314.53 -94063114.53 - - -
Including: Legal reserve - - - - - - - - - 9406314.53 -94063114.53 - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - --1 124583597.45 -1124583597.45 -2256143657.02 -3380727254.47
3. Others - - - - - - - - - - -7944921.60 -794921.60 -221659111.47 -229604033.07
(IV) Transfers within equity - - - - - - - - - - - - - -
1. Share capital increased by
--------------
capital reserve transfer
2. Share capital increased by surplus reserve
--------------
transfer
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - - - -
4. Changes arising from defined benefit plan
--------------
transferred to retained earnings
5. Transfer of other comprehensive income to
--------------
retained earnings
6. Others - - - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - 7963418.75 - - 7963418.75 12653333.12 20616751.87
1. Appropriation during the year - - - - - - - - 61589514.21 - - 61589514.21 66309179.08 127898693.29
2. Utilisation during the year - - - - - - - - -53626095.46 - - -53626095.46 -53655845.96 -107281941.42
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the year 24907461.0 - - 37-0 76846803.06 - -903626594.35 -453976318.25 340394.1 1095980563.68 19045313519.75 58847592947.55 66722341481.26 125569934428.81
The accompanying notes form part of the financial statements.- 20 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
The Company's Statement of Changes in Shareholders' Equity
RMB
2024
Including: Translation
Other equity instruments
difference of financial
Item Other comprehensive
Share capital Capital reserve Less: Treasury shares statements Specific reserve Surplus reserve Retained earnings Total
Preference perpetual income
others denominated in foreign
shares bonds
currencies
I. Balance at the end of the previous year 2499074661.00 - - - 37704543586.11 - 120520832.83 - - 1095980563.68 1999000567.57 43419120211.19
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - -
Others - - - - - - - - - - - -
II. Balance at the beginning of the year 2499074661.00 - - - 37704543586.11 - 120520832.83 - - 1095980563.68 1999000567.57 43419120211.19
III. Changes in equity during the year 2233820.00 - - - 69290296.51 50559789.14 9893609.24 - - 153556766.82 286714889.54 471129592.97
(I) Total comprehensive income - - - - - - 9893609.24 - - - 1890551147.34 1900444756.58
(II) Shareholders’ contributions of capital 2233820.00 - - - 69290296.51 50559789.14 - - - - - 20964327.37
1. Contribution by ordinary shareholders 2233820.00 - - - 39515503.24 - - - - - - 41749323.24
2. Contribution by holders of other equity instruments - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - -6172572.05 - - - - - - -6172572.05
4. Others - - - - 35947365.32 50559789.14 - - - - - -14612423.82
(III) Appropriation of profits - - - - - - - - - 153556766.82 -1603836257.80 -1450279490.98
1. Appropriation for surplus reserve - - - - - - - - - 153556766.82 -153556766.82 -
Including: Legal reserve - - - - - - - - - 153556766.82 -153556766.82 -
Arbitrary accumulation fund - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1450279490.98 -1450279490.98
3. Others - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - - -
1. Share capital increased by capital reserve transfer - - - - - - - - - - - -
2. Share capital increased by surplus reserve transfer - - - - - - - - - - - -
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - -
4. Changes arising from defined benefit plan
------------
transferred to retained earnings
5. Transfer of other comprehensive income
------------
to retained earnings
6. Others - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - - - - -
1. Appropriation during the year - - - - - - - - - - - -
2. Utilisation during the year - - - - - - - - - - - -
(VI) Others - - - - - - - - - - - -
IV. Balance at the end of the year 2501308481.00 - - - 37773833882.62 50559789.14 130414442.07 - - 1249537330.50 2285715457.11 43890249804.16
- 21 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2024
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
2023
Including: Translation
Other equity instruments
difference of financial
Item Other comprehensive
Share capital Capital reserve Less: Treasury shares statements Specific reserve Surplus reserve Retained earnings Total
Preference perpetual income
others denominated in foreign
shares bonds
currencies
I. Balance at the end of the previous 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. Balance at the beginning of the year 2499074661.00 - - - 37749723642.07 - 99525686.03 - - 1001917449.15 2277016134.29 43627257572.54
III. Changes in equity during the year - - - - -45180055.96 - 20995146.80 - - 94063114.53 -278015566.72 -208137361.35
(I) Total comprehensive income - - - - - - 20995146.80 - - - 940631145.26 961626292.06
(II) Shareholders’ contributions of capital - - - - -45180055.96 - - - - - - -45180055.96
1. Contribution by ordinary shareholders - - - - - - - - - - - -
2. Contribution by holders of other equity instruments - - - - - - - - - - - -
3. Equity-settled share-based payments - - - - 1890784.31 - - - - - - 1890784.31
4. Others - - - - -47070840.27 - - - - - - -47070840.27
(III) Appropriation of profits - - - - - - - - - 94063114.53 -1218646711.98 -1124583597.45
1. Appropriation for surplus reserve - - - - - - - - - 94063114.53 -94063114.53 -
Including: Legal reserve - - - - - - - - - 94063114.53 -94063114.53 -
Arbitrary accumulation fund - - - - - - - - - - - -
2. Distribution to shareholders - - - - - - - - - - -1124583597.45 -1124583597.45
3. Others - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - - -
1. Share capital increased by capital reserve transfer - - - - - - - - - - - -
2. Share capital increased by surplus reserve transfer - - - - - - - - - - - -
3. Transfer of surplus reserve to offset losses - - - - - - - - - - - -
4. Changes arising from defined benefit plan
------------
transferred to retained earnings
5. Transfer of other comprehensive income to
------------
retained earnings
6. Others - - - - - - - - - - - -
(V) Specific reserve - - - - - - - - - - - -
1. Appropriation during the year - - - - - - - - - - - -
2. Utilisation during the year - - - - - - - - - - - -
(VI) Others - - - - - - - - - - - -
IV. Balance at the end of the year 2499074661.00 - - - 37704543586.11 - 120520832.83 - - 1095980563.68 1999000567.57 43419120211.19
The accompanying notes form part of the financial statements.- 22 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Group Co. Ltd. (hereinafter referred to as the "Company") is a joint-stock
company incorporated in Shenzhen Guangdong Province on 16 January 1993.The headquarters of the Company is located in Shenzhen Guangdong Province. The Company and
its subsidiaries (collectively the "Group") are actually engaged in the principal operating activities
of port services bonded logistics services and other businesses such as property development and
investment.The Company's and consolidated financial statements were approved by the Board of Directors on
1 April 2025.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises (hereinafter referred to
as "ASBE") issued by the Ministry of Finance. In addition the Group has disclosed relevant
financial information in accordance with Information Disclosure and Presentation Rules for
Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting
(Revised in 2023).Going concern
As at 31 December 2024 the Group had total current liabilities in excess of total current assets by
RMB 6685293596.39. As at 31 December 2024 the Group had available and unused credit
facilities and bonds amounting to RMB 40616331020.58 which is greater than the balance of the
net current liabilities. The Group can obtain financial support from the available line of credit and
bonds when needed. Therefore the financial statements have been prepared on a going concern
basis.(III) STATEMENT OF COMPLIANCE WITH THE ASBE
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises and truly and completely reflect the consolidated and
Company's financial position as at 31 December 2024 and the consolidated and Company's
operating results consolidated and Company's shareholders’ equity and consolidated and
Company's cash flow for the year ended 31 December 2024.(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting year
The financial year of the Group is from 1 January to 31 December of the Gregorian calendar year.- 23 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
2. Operating cycle
Business cycle refers to the period from the purchase of assets for processing to the realization of
cash or cash equivalents. The Group is actually engaged in the principal operating activities of port
services bonded logistics services and other businesses such as property development and
investment.
3. Functional currency
The Company’s functional currency is Renminbi (hereinafter referred to as "RMB") and these
financial statements are presented in RMB. The Company and its domestic subsidiaries use RMB
as their bookkeeping base currency. The Company's overseas subsidiaries determine their
functional currency according to the currency in the primary economic environment in which they
operate. The Company adopts RMB to prepare its financial statements.
4. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for financial instruments which are
measured at fair value the Group adopts the historical cost as the principle of measurement of the
financial statements. Upon being restructured into a stock company the fixed assets and intangible
assets initially contributed by the state-owned shareholders are recognized based on the valuation
amounts confirmed by the state-owned assets administration department. Where assets are impaired
provisions for asset impairment are made in accordance with the relevant requirements.Where the historical cost is adopted as the measurement basis assets are recorded at the amount of
cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time
of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the
contractual amounts for assuming the present obligation or at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date regardless of whether that
price is directly observable or estimated using valuation technique. Fair value measurement and
disclosure in the financial statements are determined according to the above basis.In the measurement of non-financial assets at fair value market participants' ability to best utilize
such assets to generate most economic benefits or the ability to sell such assets to other market
participants who are able to best utilize the assets to generate economic benefits is taken into
account.For financial assets of which transaction prices are the fair value on initial recognition and of which
valuation technique involving unobservable input is used in subsequent measurement the valuation
technique in the course of valuation is adjusted to enable the result of initial recognition based on
the valuation technique equal to the transaction price.- 24 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
4. Basis of accounting and principle of measurement - continued
Fair value measurements are categorized into Level 1 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the asset or liability either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
5. Method for determination of materiality criteria and basis for selection
Item Materiality criteria
Significant prepayments aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends receivable aged more than
The amount exceeds RMB 50 million individually
1 year
Significant other receivables for which bad debt
The amount exceeds RMB 10 million individually
provision is assessed on an individual basis
Reversal or recovery of significant bad debt
The amount exceeds RMB 10 million individually
provision
Impairment testing of significant long-term equity The carrying amount of an individual long-term equity investment≥2% of
investments the amount of total assets
The year-end carrying amount of an individual construction in progress
Significant construction in progress
ranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress ≥20% of
in progress the amount of total assets
Significant accounts payable aged more than 1 year The amount exceeds RMB 10 million individually
Significant advance payments received aged
The amount exceeds RMB 10 million individually
more than 1 year
Significant contract liabilities aged more than
The amount exceeds RMB 10 million individually
1 year
Significant dividends payable aged more than
The amount exceeds RMB 50 million individually
1 year
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 15% of
Significant non-wholly owned subsidiaries
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 consolidated
Significant joint ventures or associates
assets and in which the investment income recognized under the equity
method accounts for ≥10% of the amount of total consolidated profit
The amount exceeds 0.3% of the amount of total assets individually
Significant commitments including reorganization mergers and acquisitions and building of
construction in progress etc.- 25 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Business combinations
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
6.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination and that control is not transitory.Assets and liabilities obtained by the combining party shall be measured at their respective carrying
amounts as recorded by the final controlling party in the consolidated financial statements at the
date of the combination. The difference between share of the carrying amount of the net assets
obtained and the carrying amount of the consideration paid for the combination (or total par value
of issued shares) is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference any excess shall be adjusted against surplus reserve and retained
earnings in turn.Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred. The merger date is the date on which the combining party actually obtains
control over the combined party.
6.2 Business combinations not involving enterprises under common control
A business combination not involving enterprises under common control is a business combination
in which all of the combining enterprises are not ultimately controlled by the same party or parties
before and after the combination.The cost of combination is the aggregate of the fair values at the acquisition date of the assets
given liabilities incurred or assumed and equity securities issued by the acquirer in exchange for
control of the acquiree. The intermediary expenses (fees in respect of auditing legal services
valuation and consultancy services etc.) and other general and administrative expenses attributable
to the business combination are recognized in profit or loss in the periods when they are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date. The acquisition date refers to the date on which the acquirer actually obtains
control over the acquiree.- 26 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Business combinations - continued
6.2 Business combinations not involving enterprises under common control - continued
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets after considering the impact of relevant deferred income tax the difference
is treated as an asset and recognized as goodwill which is measured at cost on initial recognition.Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets the acquirer reassesses the measurement of the fair values of the acquiree's
identifiable assets liabilities and contingent liabilities and measurement of the cost of combination.If after that reassessment the cost of combination is still less than the acquirer's interest in the fair
value of the acquiree's identifiable net assets the acquirer recognizes the remaining difference
immediately in profit or loss for the current period.
7. Goodwill
Goodwill arising from a business combination is measured at cost less accumulated impairment
losses and is presented separately in the consolidated financial statements. Goodwill shall be
subject to impairment testing at least at the end of each year.The impairment testing of goodwill shall be conducted in combination with the relevant assets
group or assets group combination. That is since the purchase date the book value of goodwill is
apportioned to the assets group or combination of assets groups that can benefit from the synergistic
effect of business combination in a reasonable way. If the recoverable amount of the assets group
or combination of assets groups containing apportioned goodwill is lower than its book value the
corresponding impairment loss is recognized. The amount of impairment loss shall first offset the
book value of goodwill apportioned to the assets group or assets group portfolio and then offset the
book value of other assets in proportion to the proportion of the book value of other assets other
than goodwill in the assets group or assets group portfolio.The recoverable amount is the higher of the net amount of the fair value of the assets minus the
disposal expenses and the present value of the estimated future cash flow of the assets.The impairment loss of goodwill shall be included in the current profit and loss when it occurs and
shall not be reversed in future accounting periods.- 27 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. Consolidated financial statements
The consolidation scope of consolidated financial statements is determined on the basis of control.Control exists when the investor has power over the investee; is exposed or has rights to variable
returns from its involvement with the investee; and has the ability to use its power over the investee
to affect its returns. The Group reassesses whether or not it controls an investee if facts and
circumstances indicate that there are changes in the above elements of the definition of control.Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary.For a subsidiary already disposed of by the Group the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated cash flow statement as appropriate.For subsidiaries acquired through a business combination involving enterprises not under common
control when preparing the consolidated financial statements of the current period the purchased
subsidiary will be included in the consolidation scope of the Company from the acquisition date on
the basis of the fair value of the identifiable assets and liabilities of the purchased subsidiary
determined on the acquisition date. The operating results and cash flows from the acquisition date
(the date when control is obtained) are included in the consolidated income statement and
consolidated cash flow statement as appropriate.No matter when the business combination occurs in the reporting period subsidiaries acquired
through a business combination involving enterprises under common control when preparing the
consolidated financial statements of the current period the book value of each assets and liability
of the consolidated subsidiary in the final controller's financial statements is taken as the basis as
if they had been included in the scope of consolidation from the date when they first came under
the common control of the ultimate controlling party. Their operating results and cash flows from
the date when they first came under the common control of the ultimate controlling party are
included in the consolidated income statement and consolidated cash flow statement as appropriate.The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.Where the accounting policies and accounting periods adopted by subsidiaries are inconsistent with
those of the Company appropriate adjustments are made to the subsidiaries' financial statements in
accordance with the accounting policies of the Company.All significant intra-group balances and transactions are eliminated on consolidation.- 28 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. Consolidated financial statements - continued
The portion of subsidiaries' equity that is not attributable to the Company is treated as non-
controlling interests and presented as " non-controlling interests " in the consolidated balance sheet
under the line item of shareholders' equity. The portion of net profits or losses of subsidiaries for
the period attributable to non-controlling interests is presented as " non-controlling interests " in the
consolidated income statement under the line item of "net profit". The portion of comprehensive
income of subsidiaries for the period attributable to non-controlling interests is presented as "
attributable to non-controlling interests " in the consolidated income statement under the line item
of "total comprehensive income".When the amount of loss for the period attributable to the non-controlling shareholders of a
subsidiary exceeds the non-controlling shareholders' portion of the opening balance of owners'
equity of the subsidiary the excess amount is still allocated against non-controlling interests.Acquisition of non-controlling interests or disposal of interests in a subsidiary that does not result
in the loss of control over the subsidiary is accounted for as equity transactions. The carrying
amounts of the Company's interests and non-controlling interests are adjusted to reflect the changes
in their relative interests in the subsidiary. The difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is adjusted
to capital reserve. If the capital reserve is not sufficient to absorb the difference surplus reserve and
retained earnings shall be offset in turn.For the stepwise acquisition of equity interest till acquiring control after a few transactions and
leading to business combination not involving enterprises under common control it shall be dealt
with based on whether it belongs to 'package deal': if it belongs to 'package deal' it will be
accounted for as a transactions to acquire control; if it does not belong to 'package deal' it will be
accounted for as a transaction to acquire control on acquisition date and the fair value of acquiree'
shares held before acquisition date will be revalued and the difference between fair value and
carrying amount will be recognized in profit or loss of the current period; if acquiree' shares held
before acquisition date involve changes in other comprehensive income and other changes in
owners' equity under equity method it will be transferred to income of acquisition date.When the Group loses control over a subsidiary due to disposal of equity investment or other
reasons any retained interest is re-measured at its fair value at the date when control is lost. The
difference between the sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity less the share of the net assets of the parent company that should be
continuously calculated from the purchase date based on the original shareholding ratio is included
in the investment income of the current period when the control right is lost and at the same time
the goodwill is offset. Other comprehensive income associated with investment in the former
subsidiary is reclassified to investment income in the period in which control is lost.- 29 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. Consolidated financial statements - continued
When the Group loses control of a subsidiary in two or more arrangements (transactions) terms
and conditions of the arrangements (transactions) and their economic effects are considered. One
or more of the following indicate that the Group shall account for the multiple arrangements as a
'package deal': (i) they are entered into at the same time or in contemplation of each other; (ii) they
form a complete transaction designed to achieve an overall commercial effect; (iii) the occurrence
of one transaction is dependent on the occurrence of at least one other transaction; (iv) one
transaction alone is not economically justified but it is economically justified when considered
together with other transactions. Where the transactions of disposal of equity investments in a
subsidiary until the loss of control are assessed as a package deal these transactions are accounted
for as one transaction of disposal of a subsidiary with loss of control. Before losing control the
difference of consideration received on disposal and the share of net assets of the subsidiary
continuously calculated from acquisition date is recognized as other comprehensive income. When
losing control the cumulated other comprehensive income is transferred to profit or loss of the
period of losing control. If the transactions of disposal of equity investments in a subsidiary are not
assessed as a package deal these transactions are accounted for as unrelated transactions.
9. Joint arrangements
Joint venture arrangement refers to an arrangement jointly controlled by two or more participants.The joint venture arrangement of the Group has the following characteristics: (1) all participants
are bound by the arrangement; (2) Two or more participants exercise joint control over the
arrangement. None of the participants can control the arrangement alone and none of the
participants with joint control over the arrangement can prevent other participants or a combination
of participants from controlling the arrangement alone.Joint control refers to the common control over an arrangement according to relevant agreements
and the relevant activities of the arrangement must be agreed by the participants sharing the control
right before making decisions.There are two types of joint arrangements - joint operations and joint ventures. The classification is
based on the rights and obligations of the parties under the joint venture arrangement taking into
account factors such as the structure legal form and contractual terms of the arrangement. A joint
operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is
a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the arrangement.The Group accounts for investments in joint ventures using equity method. Refer to Note (IV)
14.3.2 "Long-term equity investments accounted for using the equity method" for details.
- 30 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Joint arrangements - continued
When a group entity undertakes its activities under joint operations the Group as a joint operator
recognizes in relation to its interest in a joint operation: - its assets including its share of any assets
held jointly; its liabilities including its share of any liabilities incurred jointly; its revenue from the
sale of its share of the output arising from the joint operation; its share of the revenue from the sale
of the output by the joint operation and its expenses including its share of any expenses incurred
jointly. The Group accounts for the assets liabilities revenues and expenses relating to its interest
in a joint operation in accordance with the accounting standards applicable to the particular assets
liabilities revenues and expenses.
10. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term (generally due within 3 months since the acquisition date)
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
11. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.For financial assets purchased or sold in regular ways assets to be received and liabilities to be
assumed are recognized on the transaction date or assets sold are derecognized on that date.Financial assets and financial liabilities are initially measured at fair value (the method for
determining the fair values of the financial assets and financial liabilities is set out in related
disclosures under "basis of accounting and principle of measurement" in note (IV) 4). For financial
assets and financial liabilities at fair value through profit or loss transaction costs are immediately
recognized in profit or loss. For other financial assets and financial liabilities transaction costs are
included in their initial recognized amounts. Upon initial recognition of contract assets bills
receivable and accounts receivable that do not contain significant financing component or without
considering the financing component included in the contract with a term not exceeding one year
under the Accounting Standards for Business Enterprises No. 14 - Revenue (hereinafter referred to
as "Revenue Standards") the Group adopts the transaction price as defined in the Revenue
Standards for initial measurement.When there is a difference between the fair value of financial assets or financial liabilities initially
recognized and the transaction price if the fair value is not determined based on the quotation of
the same assets or liabilities in the active market or based on the valuation technology only using
observable market data no gains or losses will be recognized when the financial assets or financial
liabilities are initially recognized.- 31 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating the interest income or interest expenses over the relevant
accounting periods.The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the book value of the financial asset or to
the amortized cost of the financial liability. When calculating the effective interest rate the Group
estimates future cash flows considering all contractual terms of the financial asset or financial
liability (such as repayment in advance extension call option or other similar options etc.) (without
considering the expected credit losses).The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognized net of principal repaid plus or less the cumulative amortized
amount arising from amortization of the difference between the amount initially recognized and the
amount at the maturity date using the effective interest method net of cumulative credit loss
allowance (only applicable to financial assets).
11.1 Classification recognition and measurement of financial assets
Subsequent to initial recognition the Group's financial assets of various categories are subsequently
measured at amortized cost at fair value through other comprehensive income or at fair value
through profit or loss.If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding and the financial asset is
held within a business model whose objective is achieved by collecting contractual cash flows the
Group classifies such financial asset as financial assets at amortized cost which include cash and
bank balances bills receivable accounts receivable other receivables and long-term receivables
etc.If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding and the financial asset is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling the financial asset the Group classifies such financial asset as financial assets at
FVTOCI. The accounts receivable and bills receivable classified as at FVTOCI upon acquisition
are presented under receivables under financing while the remaining items due within one year
(inclusive) upon acquisition are presented under other current assets. Other financial assets of such
type are presented as other debt investments if they are due after one year since the acquisition or
presented under non-current assets due within one year if they are due within one year (inclusive)
since the balance sheet date.- 32 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
On initial recognition the Group may irrevocably designate non-trading equity instruments other
than contingent consideration recognized through business combination not involving enterprises
under common control as financial assets at FVTOCI on an individual basis. Such financial assets
at FVTOCI are presented as investments in other equity instruments.A financial asset is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of selling in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
Related financial assets are derivatives. However the derivatives meeting the definition of
financial guarantee contract and those designated as effective hedging instruments are
excluded.Financial assets measured at fair value through profit or loss (hereinafter referred to as "FVTPL")
include those classified as financial assets at FVTPL and those designated as financial assets at
FVTPL.Financial assets not satisfying the criteria of classification as financial assets at amortized cost
and financial assets at FVTOCI are classified as financial assets at FVTPL.Upon initial recognition the Group may irrevocably designate the financial assets at FVTPL
if doing so eliminates or significantly reduces accounting mismatch.Financial assets at FVTPL other than derivative financial assets are presented as financial assets
held for trading. Financial assets with a maturity over one year since the balance sheet date (or
without a fixed maturity) and expected to be held for over one year are presented under other non-
current financial assets.
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the
effective interest method. Gain or loss arising from impairment or derecognition is recognized in
profit or loss.- 33 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
11.1.1 Financial assets measured at amortized cost - continued
For financial assets measured at amortized cost the Group recognizes interest income using
effective interest method. The Group calculates and recognizes interest income through book value
of financial assets multiplying effective interest rate except for the following circumstances:
For purchased or originated credit-impaired financial assets the Group calculates and
recognizes the interest income based on amortized cost of the financial asset and the effective
interest rate through credit adjustment since initial recognition.For financial assets that have not suffered from credit impairment but have become credit
impairment in subsequent periods the Group will calculate and determine their interest
income according to the amortized cost and effective interest rate of the financial assets in
subsequent periods. If the financial instruments no longer has credit impairment due to the
improvement of its credit risk in the subsequent period and this improvement can be related
to an event that occurs after the application of the above provisions the Group will calculate
and determine interest income by multiplying the actual interest rate by the book value of the
financial asset.
11.1.2 Financial assets at FVTOCI
For financial assets classified as at FVTOCI except for the impairment losses or gains and the
interest income and exchange losses or gains calculated using the effective interest method which
are included in profit or loss for the period the changes in fair value are included in other
comprehensive income. The amounts included in profit or loss for each period are equivalent to that
as if the financial assets have been always measured at amortized cost. Upon derecognition the
accumulated gains or losses previously included in other comprehensive income are transferred to
profit or loss for the period.Changes in fair value of non-trading equity instrument investments designated as financial assets at
FVTOCI are recognized in other comprehensive income and the cumulative gains or losses
previously recognized in other comprehensive income allocated to the part derecognized are
transferred and included in retained earnings. During the period in which the Group holds the non-
trading equity instruments revenue from dividends is recognized in profit or loss for the current
period when (1) the Group has established the right of collecting dividends; (2) it is probable that
the associated economic benefits will flow to the Group; and (3) the amount of dividends can be
measured reliably.- 34 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
11.1.3 Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value. Gain or loss arising from
changes in fair value and dividends and interest related to the financial assets are recognized in
profit or loss.
11.2 Impairment of financial instruments
For financial assets at amortized cost financial assets classified as at FVTOCI lease receivables
contract assets loan commitments that are not financial liabilities at FVTPL financial liabilities
that are not at FVTPL and financial guarantee contracts that are not qualified for derecognition due
to the transfer of financial assets or financial liabilities arising from continuing involvement of the
transferred financial assets the Group accounts for the impairment and recognizes the provision for
losses on the basis of expected credit loss (hereinafter referred to as "ECL").For all contract assets bills receivable and accounts receivable arising from transactions regulated
by Revenue Standards and lease receivables arising from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases the Group recognizes the provision for losses
at an amount equivalent to lifetime ECL.For other financial instruments (other than purchased or originated credit-impaired financial assets)
the Group assesses the changes in credit risk since initial recognition of relevant financial
instruments at each balance sheet date. If the credit risk has increased significantly since initial
recognition of the financial instruments the Group recognizes the provision for losses at an amount
equivalent to lifetime ECL; if the credit risk has not increased significantly since initial recognition
of the financial instruments the Group recognizes the provision for losses at an amount equivalent
to 12-month ECL. The increase or reversal of credit impairment for financial assets other than those
classified as at FVTOCI is recognized as impairment loss or gain and included in profit or loss for
the period. For financial assets classified as at FVTOCI the provision for bad debts is recognized
in other comprehensive income and the impairment loss or gain is included in profit or loss for the
period without reducing the carrying amount of the financial assets in the balance sheet.Where the Group has measured the provision for losses at an amount equivalent to lifetime ECL of
a financial instrument in prior accounting period but the financial instrument no longer satisfies the
criteria of significant increase in credit risk since initial recognition at the current balance sheet date
the Group recognizes the provision for losses of the financial instrument at an amount equivalent
to 12-month ECL at the current balance sheet date with any resulting reversal of provision for
losses recognized as impairment gains in profit or loss for the period.- 35 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.1 Significant increase of credit risk
The Group uses reasonable and supportable forward-looking information to assess whether the
credit risk has increased significantly since initial recognition by comparing the risk of a default
occurring on the financial instrument at the balance sheet date with the risk of a default occurring
on the financial instrument at the date of initial recognition. For loan commitments and financial
guarantee contracts the date on which the Group becomes a party to the irrevocable commitment
is considered to be the date of initial recognition in the application of criteria related to the financial
instrument for impairment.In particular the following information is taken into account when assessing whether credit risk has
increased significantly:
(1) Significant changes in internal price indicators resulting from changes in credit risk;
(2) Significant changes in the rates or other terms of an existing financial instrument if the
instrument was newly originated or issued at the balance sheet date (such as more stringent
covenants increased amounts of collateral or guarantees or higher rate of return etc.);
(3) Significant changes in the external market indicators of credit risk of the same financial
instrument or similar financial instruments with the same expected duration. These
indicators include: credit spreads credit default swap prices against borrower length of time
and extent to which the fair value of financial assets is less than their amortized cost and
other market information related to the borrower (such as the borrower's debt instruments
or changes in the price of equity instruments);
(4) An actual or expected significant change in the financial instrument's external credit rating;
(5) An actual or expected decrease in the internal credit rating for the debtor;
(6) Adverse changes in business financial or economic conditions that are expected to cause a
significant decrease in the debtor's ability to meet its debt obligations;
(7) An actual or expected significant change in the operating results of the debtor;
(8) Significant increase in credit risk of other financial instruments issued by the same debtor;
(9) Significant adverse changes in the regulatory economic or technological environment of
the debtor;
(10) Significant changes in the value of the collaterals or the quality of guarantees or credit
enhancements provided by third parties which are expected to reduce the debtor's economic
motives to repay within the time limit specified in contract or affect the probability of default;
(11) Significant change in the debtor's economic motives to repay within the time limit specified
in contract;
(12) Expected changes to loan contract including the exemption or revision of contractual
obligations the granting of interest-free periods the jump in interest rates the requirement
for additional collateral or guarantees or other changes in the contractual framework for
financial instruments that may result from the breach of contract;
- 36 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.1 Significant increase of credit risk - continued
(13) Significant change in the expected performance and repayment of the debtor;
(14) Significant change in the method used by the Group to manage the credit of financial
instruments.The Group assumes that the credit risk on a financial instrument has not increased significantly
since initial recognition if the financial instrument is determined to have lower credit risk at the
balance sheet date. A financial instrument is determined to have lower credit risk if: i) it has a lower
risk of default ii) the borrower has a strong capacity to meet its contractual cash flow obligations
in the near term and iii) adverse changes in economic and business conditions in the longer term
may but will not necessarily reduce the ability of the borrower to fulfil its contractual cash flow
obligations.
11.2.2 Credit-impaired financial assets
When an event or several events that are expected to have adverse impact on the future cash flows
of the financial assets have occurred the financial assets become credit-impaired. The evidences of
credit impairment of financial assets include the following observable information:
(1) Significant financial difficulty of the issuer or debtor.
(2) A breach of contract by the debtor such as a default or delinquency in interest or principal
payments.
(3) The creditor for economic or legal reasons relating to the debtor's financial difficulty
granting a concession to the debtor.
(4) It becomes probable that the debtor will enter bankruptcy or other financial reorganizations.
(5) The disappearance of an active market for the financial asset because of financial difficulties
of the issuer or the debtor.
(6) Purchase or origination of a financial asset with a large scale of discount which reflects the
fact of credit loss.Based on the Group's internal credit risk management the Group considers an event of default
occurs when information developed internally or obtained from external sources indicates that the
debtor is unlikely to pay its creditors including the Group in full (without taking into account any
collaterals held by the Group).- 37 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.2 Impairment of financial instruments - continued
11.2.3 Determination of expected credit loss
The Group determines the credit loss of leases receivables on the basis of single assets and
determines the credit loss of related financial instruments on the basis of combination of cash at
bank and on hand bills receivable accounts receivable other receivables long-term receivables
etc. with impairment matrix. The Group divides financial instruments into different groups based
on common risk characteristics. Common credit risk characteristics adopted by the Group include:
type of financial instruments credit risk rating type of collateral initial recognition date remaining
contract period industry of the debtor geographical location of the debtor value of collateral
relative to financial assets etc.The Group determines the ECL of relevant financial instruments using the following methods:
For financial assets the credit loss is the present value of the difference between the
contractual cash flows that are due to the Group under the contract and the cash flows that the
Group expects to receive;
For financial guarantee contracts (refer to Note IV 11.4.1.3 for the detail of accounting
policies) the credit loss is the present value of the expected payments to reimburse the holder
for the credit loss incurred less any amounts that the Group expects to receive from the holder
the debtor or any other party.For financial assets credit-impaired at the balance sheet date but not purchased or originated
credit-impaired the credit loss is the difference between the book value of the financial assets
and the present value of estimated future cash flows discounted at the original effective
interest rate.The factors reflected by the Group's measurement of ECL of financial instruments include: unbiased
probability weighted average amount recognized by assessing a series of possible results; time value
of money; reasonable and supportable information related to historical events current condition
and forecast of future economic position that is available without undue cost or effort at the balance
sheet date.
11.2.4 Write-off of financial assets
When the Group no longer reasonably expects that the contractual cash flows of financial assets
can be collected in aggregate or in part the Group will directly write down the book value of the
financial assets which constitutes derecognition of relevant financial assets.- 38 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.3 Transfer of financial assets
The Group will derecognize a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset and it retains control of the financial asset the Group will recognize the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognize an
associated liability. The Group will measure relevant liabilities as follows:
For transferred financial assets carried at amortized cost the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortized cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortized cost of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant
liabilities are not designated as financial liabilities at fair value through profit or loss.For transferred financial assets carried at fair value the carrying amount of relevant liabilities
is the carrying amount of financial assets transferred with continuing involvement less fair
value of the Group's retained rights (if the Group retains relevant rights upon transfer of
financial assets) with addition of fair value of obligations assumed by the Group (if the Group
assumes relevant obligations upon transfer of financial assets). Accordingly the fair value of
relevant rights and obligations shall be measured on an individual basis.For the transfer of a financial asset in its entirety that satisfies the derecognition criteria the
difference between (1) the carrying amount of the financial asset transferred and (2) the sum of the
consideration received from the transfer and any cumulative gain or loss that has been recognized
in other comprehensive income is recognized in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI cumulative gains or losses
previously recognized in other comprehensive income are transferred out and included in retained
earnings.- 39 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.3 Transfer of financial assets - continued
If a part of the transferred financial asset qualifies for derecognition the overall carrying amount of
the financial asset prior to transfer is allocated between the part that continues to be recognized and
the part that is derecognized based on the respective fair value of those parts at the date of transfer.The difference between (1) the carrying amount allocated to the part derecognized on the date of
derecognition; and (2) the sum of the consideration received for the part derecognized and any
cumulative gain or loss allocated to the part derecognized which has been previously recognized in
other comprehensive income is recognized in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI cumulative gains or losses
previously recognized in other comprehensive income are transferred out and included in retained
earnings.For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria the
Group continues to recognize the transferred financial asset in its entirety. The consideration
received from transfer of assets is recognized as a financial liability upon receipt.
11.4 Classification of financial liabilities and equity instruments
Financial instruments issued by the Group or their components are classified into financial liabilities
or equity instruments on the basis of the substance of the contractual arrangements and the economic
nature not only the legal form together with the definition of financial liability and equity
instrument on initial recognition.
11.4.1 Classification recognition and measurement of financial liabilities
On initial recognition financial liabilities are classified into financial liabilities at FVTPL and other
financial liabilities.
11.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives
classified as financial liabilities) and those designated as at FVTPL. Except for derivative financial
liabilities presented separately the financial liabilities at FVTPL are presented as held-for-trading
financial liabilities.A financial liability is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of repurchasing in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.- 40 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.1 Classification recognition and measurement of financial liabilities - continued
11.4.1.1 Financial liabilities at FVTPL - continued
A financial liability may be designated as at FVTPL on initial recognition when one of the following
conditions is satisfied: (i) Such designation eliminates or significantly reduces accounting mismatch;
or (ii) The Group makes management and performance evaluation on a fair value basis in
accordance with the Group's formally documented risk management or investment strategy and
reports to key management personnel on that basis. (iii) The qualified hybrid financial instrument
combines financial asset with embedded derivatives.Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses
arising from changes in fair value and any dividends or interest expenses paid on the financial
liabilities are recognized in profit or loss.For a financial liability designated as at FVTPL the amount of changes in fair value of the financial
liability that are attributable to changes in the credit risk of that liability shall be presented in other
comprehensive income while other changes in fair value are included in profit or loss for the current
period. Upon the derecognition of such financial liability the accumulated amount of changes in
fair value that are attributable to changes in the credit risk of that liability which was recognized in
other comprehensive income is transferred to retained earnings. Any dividend or interest expense
on the financial liabilities is recognized in profit or loss. If the accounting treatment for the impact
of the change in credit risk of such financial liability in the above ways would create or enlarge an
accounting mismatch in profit or loss the Group shall present all gains or losses on that liability
(including the effects of changes in the credit risk of that liability) in profit or loss for the period.For financial liabilities arising from contingent consideration recognized by the Group as the
acquirer in the business combination not involving enterprises under common control the Group
measures such financial liabilities at fair value through profit or loss and includes the changes in
the financial liabilities in profit or loss for the period.- 41 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.1 Classification recognition and measurement of financial liabilities - continued
11.4.1.2 Other financial liabilities
Except for financial liabilities financial guarantee contracts and loan commitments arising from
transfer of financial assets that do not meet the derecognition criteria or those arising from
continuing involvement in the transferred financial assets other financial liabilities are
subsequently measured at amortized cost with gain or loss arising from derecognition or
amortization recognized in profit or loss.If the modification or renegotiation for the contract by the Group and its counterparties does not
result in derecognition of a financial liability subsequently measured at amortized cost but the
changes in contractual cash flows the Group will recalculate the carrying amount of the financial
liability with relevant gain or loss recognized in profit or loss. The Group will determine the
carrying amount of the financial liability based on the present value of renegotiated or modified
contractual cash flows discounted at the original effective interest rate of the financial liability. For
all costs or expenses arising from modification or renegotiation of the contract the Group will adjust
the modified carrying amount of the financial liability and make amortization during the remaining
term of the modified financial liability.
11.4.1.3 Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.Subsequent to initial recognition financial guarantee contracts that are not designated as financial
liabilities at fair value through profit or loss or financial liabilities arising from transfer of financial
assets that do not meet the derecognition criteria or those arising from continuing involvement in
the transferred financial assets are measured at the higher of amount of loss provision; and the
amount initially recognized less cumulative amortization amount determined based on the revenue
standards.- 42 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments - continued
11.4.2 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to replace
the original financial liability with a new financial liability with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability.When the Group derecognizes a financial liability or a part of it it recognizes the difference between
the carrying amount of the financial liability (or part of the financial liability) derecognized and the
consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
11.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments issued (including refinanced) repurchased
sold and cancelled by the Group are recognized as changes in equity. The Group's issuance of
equity instruments is recorded in the owner's equity at the actual issue price and the relevant
transaction costs are deducted from the owner's equity (capital reserve). If the capital reserve is
insufficient to offset the surplus reserve and retained earnings are offset in turn. The consideration
and transaction costs paid for repurchasing the Company's equity instruments reduce the owner's
equity.The Group recognizes the distribution to holders of the equity instruments as distribution of profits
and dividends paid do not affect total amount of shareholders' equity.- 43 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.5 Derivatives and embedded derivatives
Derivatives include forward exchange contracts currency swaps interest rate swaps and foreign
exchange options etc. Derivatives are initially measured at fair value at the date when the derivative
contracts are entered into and are subsequently measured at fair value.Derivatives embedded in hybrid contracts with a financial asset host are not separated by the Group.The hybrid contract shall apply the relevant accounting standards regarding the classification of
financial assets as a whole.Derivatives embedded in hybrid contracts with hosts that are not financial assets are separated and
treated as separate derivatives by the Group when they meet the following conditions:
(1) the economic characteristics and risks of the embedded derivative are not closely related to
those of the host contract;
(2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative;
(3) the hybrid contracts are not measured at fair value through profit or loss.
For the embedded derivative separated from the host contracts the Group accounts for the host
contracts in the hybrid contracts with applicable accounting standards. When the embedded
derivatives whose fair value cannot be measured reliably by the Group according to the terms and
conditions of the embedded derivatives the fair value of such derivatives are measured at the
difference between the fair value of the hybrid contracts and the fair value of the host contracts. By
adopting the above method if the embedded derivative cannot be measured on a stand-alone basis
at the time when it is acquired or at subsequent balance sheet dates the hybrid instrument is
designated as financial instruments at fair value through profit or loss as a whole.
11.6 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial
assets and financial liabilities and intends either to settle on a net basis or to realize the financial
asset and settle the financial liability simultaneously a financial asset and a financial liability shall
be offset and the net amount is presented in the balance sheet. Except for the above circumstances
financial assets and financial liabilities shall be presented separately in the balance sheet and shall
not be offset.
11.7 Compound instruments
For convertible bonds issued by the Group that contain both liabilities and conversion option that
may convert the liabilities to its own equity instrument upon initial recognition the bonds are split
into liabilities and conversion option which are separately recognized. Therein the conversion
option that exchanges a fixed amount of cash or other financial assets for a fixed amount of equity
instruments is accounted for as an equity instrument.- 44 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.7 Compound instruments - continued
Upon initial recognition the fair value of liability portion is determined based on the prevailing
market price of the bonds containing no conversion option. The overall issue price of the convertible
bonds net of the fair value of the liability portion is considered as the value of the conversion option
that enables the bonds holder to convert the bonds to equity instruments and is included in other
equity instruments.The liability portion of the convertible bonds is subsequently measured at amortized cost using
effective interest method; the value of the conversion option classified as equity instrument is
remained in equity instrument. The expiry or conversion of convertible bonds will not result in loss
or gain.The transaction costs incurred for issuance of the convertible bonds are allocated between the
liability portion and equity instrument portion in proportion to their respective fair values. The
transaction cost relating to the equity instrument portion is directly included in equity instrument;
while the transaction cost relating to the liability portion is included in the carrying amount of the
liability and amortized over the lifetime of the convertible bonds using effective interest method.
11.8 Reclassification of financial instruments
When the Group changes the business model to manage the financial assets the financial assets
affected will be reclassified and no financial liabilities will be reclassified.The financial assets are reclassified by the Group and are accounted for prospectively since the date
of reclassification (i.e. the first date of the initial reporting period after the business model of which
the financial assets are reclassified by the enterprise is changed).Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
profit or loss by (hereinafter referred to as "FVTPL") the Group such financial asset is measured
at fair value at the date of reclassification and the difference between the original carrying amount
and the fair value is recognized in profit or loss for the period.Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
other comprehensive income (hereinafter referred to as "FVTOCI") by the Group such financial
asset is measured at fair value at the date of reclassification and the difference between the original
carrying amount and the fair value is recognized in other comprehensive income.Where a financial asset at FVTOCI is reclassified as a financial asset at amortized cost by the Group
the accumulated gains or losses previously recognized in other comprehensive income are
transferred out and the fair value at the date of reclassification is adjusted. The adjusted fair value
is determined as the new carrying amount as if the financial asset has been always measured at
amortized cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.- 45 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.8 Reclassification of financial instruments - continued
Where a financial asset at FVTOCI is reclassified as a financial asset at FVTPL by the Group such
financial asset continues to be measured at fair value. At the same time the accumulated gains or
losses previously recognized in other comprehensive income are transferred to profit or loss for the
period.Where a financial asset at FVTPL is reclassified as a financial asset at amortized cost by the Group
the fair value at the date of reclassification is determined as the new book value.Where a financial asset at FVTPL is reclassified as a financial asset at FVTOCI by the Group such
financial asset continues to be measured at fair value.Where a financial asset at FVTPL is reclassified the effective interest rate is determined on the
basis of the fair value of the financial asset at the date of reclassification.
12. Receivables
12.1 Determination and accounting methods for expected credit losses of receivables
The Group assesses the credit risk of receivables with significantly different credit risks on an
individual basis and determine the credit losses of receivables on a portfolio basis using an
impairment matrix for other receivables. The amount of increase in or reversal of allowance for
expected credit losses on receivables is included in profit or loss for the period as credit losses or
gains.
12.2 Categories of portfolios for which provision for bad debts is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination
The Group classifies receivables into groups A B and C based on common risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial instrument
credit risk rating initial recognition date remaining contractual term industry of the debtor
geographical location of the debtor etc.- 46 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Receivables - continued
12.2 Categories of portfolios for which provision for bad debts is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination - continued
The Group makes internal credit ratings on customers and determines expected loss rate of
receivables. Basis for determining ratings and the expected loss rates are as follows:
Internal credit Expected average
Basis for determining portfolio
rating loss rate (%)
Customers can make repayments within credit term and have good credit
A records based on historical experience. The probability of default on 0.00-0.10
payment of due amounts is extremely low in the foreseeable future.The customers may have overdue payment based on historical experience
B 0.10-0.30
but they can make repayments.The evidence indicates that the overdue credit risks of the customers are
C 0.30-50.00
significantly increased and there is probability of default on payment.
12.3 Determination criteria for provision for bad debts on an individual basis
Internal credit Expected average
Basis to determine the provision for bad debts on an individual basis
ratings loss ratio (%)
There is evidence showing that the receivables from customers are
impaired or that the customers are experiencing significant financial
D 50.00-100.00
difficulties and thus the receivables will be irrecoverable in the
foreseeable future.
13. Inventories
13.1 Categories of inventories measurement method of cost of inventories inventory count
system amortization method of low-value consumables and packaging materials
13.1.1 Categories of inventories
The Group's inventories mainly include raw materials merchandise and others. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.- 47 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Inventories - continued
13.1 Categories of inventories measurement method of cost of inventories inventory count
system amortization method of low-value consumables and packaging materials -
continued
13.1.2 Measurement method of cost of inventories
Cost of inventories recognised is calculated using the first-in-first-out and weighted average method.
13.1.3 Inventory count system
The perpetual inventory system is perpetual inventory system.
13.1.4 Amortization method for low cost and low-value consumables items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized using the
immediate write-off method.
13.2 Recognition criteria and provision method for decline in value of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value a provision for decline in value of
inventories is made.Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion the estimated costs necessary to make the sale and relevant taxes.Net realizable value is determined on the basis of clear evidence obtained after taking into
consideration the purposes of inventories being held and effect of post balance sheet events.Provision for decline in value of inventories is made based on the excess of cost of inventory over
its net realizable value on an item-by-item basis.After the provision for decline in value of inventories is made if the circumstances that previously
caused inventories to be written down below cost no longer exist so that the net realizable value of
inventories is higher than their cost the original provision for decline in value is reversed and the
reversal is included in profit or loss for the period.- 48 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments
14.1 Basis for determining joint control and significant influence over investee
Control means that the investor has the power over the investee enjoys variable returns by
participating in the relevant activities of the investee and has the ability to use the power over the
investee to affect its return amount. Joint control refers to the common control over an arrangement
according to relevant agreements and the relevant activities of the arrangement must be agreed by
the participants sharing the control right before making decisions. Significant influence refers to
having the right to participate in the decision-making of the investee's financial and operating
policies but not being able to control or jointly control the formulation of these policies with other
parties. When determining whether it is possible to control or exert significant influence on the
investee the convertible corporate bonds executable warrants and other potential voting rights of
the investee held by the investor and other parties have been considered.
14.2 Determination of initial investment cost
For a long-term equity investment acquired through business combination involving enterprises
under common control share of carrying amount of owners' equity of the acquiree in the
consolidated financial statements of ultimate controlling party is recognized as initial investment
cost of long-term equity investment at the date of combination. The difference between initial
investment cost of long-term equity investment and cash paid non-cash assets transferred and
carrying amount of liabilities assumed is adjusted in capital reserve. If the balance of capital reserve
is not sufficient to absorb the difference surplus reserve and retained earnings shall be offset in
turn. If the consideration of the combination is satisfied by the issue of equity securities the initial
investment cost of the long-term equity investment is the share of carrying amount of owners' equity
of the acquiree in the consolidated financial statements of ultimate controlling party at the date of
combination. The aggregate face value of the shares issued is accounted for as share capital. The
difference between the initial investment cost and the aggregate face value of the shares issued is
adjusted to capital reserve. If the balance of capital reserve is not sufficient to absorb the difference
surplus reserve and retained earnings shall be offset in turn.- 49 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.2 Determination of initial investment cost - continued
For a long-term equity investment acquired through business combination not involving enterprises
under common control the initial investment cost of the long-term equity investment acquired is
the cost of acquisition.The expenses incurred by the acquirer in respect of auditing legal services valuation and
consultancy services and other associated general and administrative expenses attributable to the
business combination are recognized in profit or loss when they are incurred.The long-term equity investment acquired otherwise than through a business combination is initially
measured at its cost. When the entity is able to exercise significant influence or joint control (but
not control) over an investee due to additional investment the cost of long-term equity investments
is the sum of the fair value of previously-held equity investments determined in accordance with
Accounting Standards for Business Enterprises No.22 - Financial Instruments: Recognition and
Measurement (ASBE No. 22) and the additional investment cost.
14.3 Subsequent measurement and recognition of profit or loss
14.3.1 Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in Company's
separate financial statements. A subsidiary is an investee that is controlled by the Group.Under the cost method a long-term equity investment is measured at initial investment cost. When
additional investment is made or the investment is recouped the cost of the long-term equity
investment is adjusted accordingly. Investment income is recognized in the period in accordance
with the attributable share of cash dividends or profit distributions declared by the investee.
14.3.2 Long-term equity investments accounted for using the equity method
Except for investments in associates and joint ventures classified as held-for-sale partly or wholly
the Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the Group only has rights to the net assets of the arrangement.Under the equity method where the initial investment cost of a long-term equity investment exceeds
the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition
no adjustment is made to the initial investment cost. Where the initial investment cost is less than
the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition
the difference is recognized in profit or loss for the period and the cost of the long-term equity
investment is adjusted accordingly.- 50 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.3 Subsequent measurement and recognition of profit or loss - continued
14.3.2 Long-term equity investments accounted for using the equity method - continued
Under the equity method the Group recognizes its share of the net profit or loss and other
comprehensive income of the investee for the period as investment income and other
comprehensive income for the period. Meanwhile the carrying amount of long-term equity
investment is adjusted; the carrying amount of long-term equity investment is decreased in
accordance with its share of the investee's declared profit or cash dividends; other changes in
owners' equity of the investee other than net profit or loss other comprehensive incomed and profit
distribution are correspondingly adjusted to the carrying amount of the long-term equity investment
and recognized in capital reserve. The Group recognizes its share of the investee's net profit or loss
based on the fair value of the investee's individual identifiable assets etc. at the acquisition date
after making adjustments. When the investee's accounting policies and accounting period are
inconsistent with those of the Group the Group recognizes investment income and other
comprehensive income after making appropriate adjustments to conform to the Group's accounting
policies and accounting period. However unrealized gains or losses resulting from the Group's
transactions with its associates and joint ventures and assets invested or sold which do not
constitute a business are eliminated based on the proportion attributable to the Group and then
investment gains or losses are recognized. However unrealized losses resulting from the Group's
transactions with its associates and joint ventures which represent impairment losses on the
transferred assets are not eliminated.When recognizing the net loss of the investee that should be shared the book value of the long-
term equity investments and other long-term interests that substantially constitute the net investment
in the investee should be written down to zero. In addition if the Group has incurred obligations to
assume additional losses a provision is recognized according to the obligation expected and
recorded in the investment loss for the period. Where net profits are subsequently made by the
investee the Group resumes recognizing its share of those profits only after its share of the profits
exceeds the share of losses previously not recognized.- 51 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.4 Disposal of long-term equity investments
On disposal of a long-term equity investment the difference between the proceeds actually received
and receivable and the carrying amount is recognized in profit or loss for the period. For long-term
equity investments accounted for using the equity method if the remaining interest after disposal
is still accounted for using the equity method other comprehensive income previously recognized
using the equity method is accounted for on the same basis as would have been required if the
investee had directly disposed of related assets or liabilities and transferred to profit or loss for the
period on a pro rata basis; owners' equity recognized due to other changes in owners' equity of the
investee (other than net profit or loss other comprehensive income and profit distribution) is
transferred to profit or loss for the period on a pro rata basis. For long-term equity investments
accounted for using the cost method if the remaining interest after disposal is still accounted for
using the cost method other comprehensive income previously recognized using the equity method
or in accordance with the standards for the recognition and measurement of financial instruments
before obtaining the control over the investee is accounted for on the same basis as would have
been required if the investee had directly disposed of related assets or liabilities and transferred to
profit or loss for the period on a pro rata basis; other changes in owners' equity in the investee's net
assets recognized under the equity method (other than net profit or loss other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.Where the Group loses control over the investee due to disposal of part of shares and in preparing
the separate financial statements remaining shares after disposal can have joint control or
significant influence over the investee the equity method shall be adopted to adjust the remaining
shares as they are accounted for under equity method since the acquisition date. If remaining shares
after disposal cannot have joint control or significant influence over the investee they are accounted
for in accordance with the standards for recognition and measurement of financial instruments and
the difference between fair value on date of losing control and carrying amount is recognized in
profit or loss for the period. Other comprehensive income recognized using the equity method or in
accordance with the standards for the recognition and measurement of financial instruments before
losing control over the investee is accounted for on the same basis as would have been required if
the investee had directly disposed of related assets or liabilities when the control over the investee
is lost; other changes in owners' equity in the investee's net assets recognized under the equity
method (other than net profit or loss other comprehensive income and profit distribution) is
transferred to profit or loss for the period. Where remaining shares after disposal are accounted for
under equity method other comprehensive income and other owners' equity are transferred on a
pro rata basis. Where remaining shares after disposal are accounted for in accordance with the
standards for recognition and measurement of financial instruments other comprehensive income
and other owners' equity are all transferred.- 52 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.4 Disposal of long-term equity investments - continued
Where the Group loses joint control or significant influence over the investee after part disposal of
shares remaining shares after disposal are accounted for in accordance with the standards for
recognition and measurement of financial instruments and the difference between fair value at the
date of losing joint control or significant influence and carrying amount is recognized in profit or
loss for the period. Other comprehensive income previously recognized under the equity method
is accounted for on the same basis as would have been required if the investee had directly disposed
of related assets or liabilities when the equity method is not adopted and other changes in owners'
equity other than net profit or loss other comprehensive income and profit distribution are
transferred to investment income for the period when the equity method is not adopted.The Group disposes of its equity investment in subsidiaries through multiple transactions step by
step until it loses control over the subsidiaries. If these transactions belong to "package deal" all
transactions are deemed as one transaction on disposal of equity investment in subsidiaries and the
difference between the amount of disposal and carrying amount of long-term equity investment is
recognized as other comprehensive income before the loss of control and transferred to profit or
loss for the period when the control is lost.
15. Investment properties
Investment property is the property held by the Group to earn rentals or for capital appreciation or
both. It includes a land use right that is leased out and a building that is leased out.An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with the investment property will flow to the Group and the
subsequent expenditures can be measured reliably. Other subsequent expenditures are recognized
in profit or loss for the period in which they are incurred.The Group uses the cost model for subsequent measurement of investment property and the
investment properties are depreciated over their useful lives using the straight-line method. The
depreciation life estimated residual value rate and annual depreciation rate of each category of
investment properties are as follows:
Annual depreciation rate
Category Depreciation life (year) Residual value rate (%)
(%)
Land use rights 21.25-50.00 - 2.00-4.71
Buildings and structures 10.00-43.17 5.00 2.20-9.50
An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and it is estimated that no economic benefits can be obtained from
its disposal the investment properties is derecognized.- 53 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Investment properties - continued
When an investment property is sold transferred retired or damaged the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
16. Fixed assets and depreciation
Fixed assets are tangible assets that are held for use in the production or supply of goods or services
for rental to others or for administrative purposes and have useful lives of more than one
accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.Fixed assets are initially measured at cost. Upon being restructured into a stock company the fixed
assets initially contributed by the state-owned shareholders are recognized based on the valuation
amounts confirmed by the state-owned assets administration department.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it
is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced
part is derecognized. Other subsequent expenditures are recognized in profit or loss for the period
in which they are incurred.A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The depreciation life estimated
net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
Depreciation life Residual value Annual
Category
(year) rate (%) depreciation rate (%)
Port and terminal facilities 5-50 5.00 1.90-19.00
Buildings and structures 5-30 5.00 3.17-19.00
Machinery and equipment furniture
3-205.004.75-31.67
and fixture and other equipment
Motor vehicles and cargo ships 5-25 5.00 3.80-19.00
Estimated net residual value of a fixed asset is the estimated amount that the Group would currently
obtain from disposal of the asset after deducting the estimated costs of disposal if the asset were
already of the age and in the condition expected at the end of its useful life.If a fixed asset is upon disposal or no future economic benefits are expected to be generated from
its use or disposal the fixed asset is derecognized. When a fixed asset is sold transferred retired
or damaged the amount of any proceeds on disposal of the asset net of the carrying amount and
related taxes is recognized in profit or loss for the period.The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end and accounts for any change
as a change in accounting estimates.- 54 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
17. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.Construction in progress is accounted for by categories of projects initiated and is transferred to a
fixed asset when it is ready for intended use. The criteria for judging the intended use shall be one
of the following:
(1) The physical construction (including installation) of fixed assets has been fully or
substantially completed;
(2) The trial production or trial operation has been carried out and the results of which indicate
that the asset is capable of normal operation or producing qualified products on a stable
basis or the results of which indicate that it is capable of normal functioning or operation;
(3) The fixed assets and intangible assets acquired and constructed have met the design or
contractual requirements or are basically in compliance with the design or contractual
requirements.- 55 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Intangible assets
18.1 Useful life and the basis for determination estimates amortization method or review
procedures
Intangible assets include land use rights terminal operating rights data resources and others.An intangible asset is measured initially at cost. Upon being restructured into a stock company the
intangible assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department. Except for
terminal operating rights when an intangible asset with a finite useful life is available for use its
original cost minus the expected net residual value and the accumulated amount of impairment
provision is amortized over its estimated useful life by using straight-line method. The terminal
operating rights under the output method are amortized over periods according to the ratio of the
estimated minimum guaranteed throughput to the estimated minimum guaranteed total throughput
during the operation period. When the estimated minimum guaranteed throughput cannot be
measured reliably the straight-line method will be used for amortization. An intangible asset with
indefinite useful life will not be amortized.The amortization method useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortization method Useful life (year) and recognition Residual value (%)
From the date of the land transfer it
Land use rights Straight-line method is amortized using the straight-line -
method over the land transfer period
Output method - it is amortized
over periods according to the ratio
of the estimated minimum
guaranteed throughput to the
estimated minimum guaranteed
Terminal operating total throughput; straight-line
Output/Straight-line method -
right method - it is amortized using the
straight-line method over the
shortest of the estimated useful life
the beneficial period specified in the
contract and the effective life as
defined by law
It is amortized using the straight-
line method over the shortest of the
Data resources and
Straight-line method estimated useful life the beneficial -
others
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.- 56 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Intangible assets - continued
18.2 Scope of R&D expenditure and method for accounting treatment
Expenditure during the research phase is recognized in profit or loss for the period in which it is
incurred.Expenditure during the development phase that meets all of the following conditions at the same
time is recognized as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognized in profit or loss for the period:
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits including the evidence of the existence of a market for the output of the intangible
asset or the intangible asset itself or if it is to be used internally the usefulness of the
intangible asset.
(4) the availability of adequate technical financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.If the expenditures cannot be distinguished between the research phase and development phase the
Group recognizes all of them in profit or loss for the year. The costs of intangible assets generated
by the internal research only include the total expenditure incurred for the period from the time
point of capitalization to the time point when the intangible assets are ready for intended use. For
the identical intangible asset the expenditures recorded as expenses before they qualify for
capitalization during the development process are not adjusted.The Group classifies the expenditures on an internal research and development project into
expenditures in the research phase and expenditures in the development phase. The scope of R&D
expenditures refer to those directly related to the R&D activities including wages salaries and
welfare expenses of personnel directly engaged in R&D activities materials directly consumed in
R&D activities depreciation expenses for instruments and equipment used in R&D activities travel
transportation and communication expenses required for research and experimental development
etc. Technical feasibility and economic viability studies are adopted as specific criteria for
classifying the research and development phases once such studies have been evaluated and
approved.- 57 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
19. Long-term deferred expenses
Long-term deferred expenses refer to various expenses that have been incurred but should be borne
in the current and subsequent periods with an apportionment period of more than one year. Long-
term deferred expenses are amortized using the straight-line method over the expected periods in
which benefits are derived.
20. Impairment of non-financial assets other than goodwill
On each balance sheet date the Group checks whether there is any sign of possible impairment of
long-term equity investments investment properties measured by cost model fixed assets
construction in progress right-of-use assets long-term deferred expenses and intangible assets
whose service life is determined. If there is any indication that such assets may be impaired
recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and
intangible assets not yet available for use are tested for impairment annually irrespective of whether
there is any indication that the assets may be impaired.Recoverable amount is estimated on an individual basis. If it is not practical to estimate the
recoverable amount of an individual asset the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset or assets group is the higher of
its fair value less costs of disposal and the present value of the future cash flows expected to be
derived from the asset.The present value of the estimated future cash flow of the assets is determined according to the
estimated future cash flow generated during the continuous use and final disposal of the assets and
the amount discounted which is determined by selecting an appropriate pre tax discount rate.If the recoverable amount of an asset is less than its carrying amount the deficit is accounted for as
an impairment losses and is recognized in profit or loss.Once the impairment losses of above-mentioned assets is recognized it shall not be reversed in any
subsequent period.When determining the impairment losses of assets related to contract costs first determine the
impairment losses of other assets related to contracts that are recognized in accordance with other
relevant accounting standards for business enterprises; Then if the book value of the assets related
to the contract costs is higher than the difference between the following two items the excess part
of the provision for impairment shall be recognized as impairment losses: (i) the Group's expected
remaining consideration for the transfer of goods or services related to the assets; (ii) Estimate the
cost to be incurred for the transfer of the relevant goods or services.- 58 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Impairment of non-financial assets other than goodwill - continued
Except for the impairment losses related to the contract costs once the above impairment losses is
recognized it will not be reversed in future accounting periods. After the provision for impairment
of assets related to contract costs has been made if the factors of impairment in previous periods
have changed resulting in the above two differences are higher than the book value of the assets
the provision for impairment of the assets that has been made is reversed and included in the current
profits and losses but the book value of the assets after reversal does not exceed the book value of
the assets on the reversal date assuming that no provision for impairment is made.
21. Provisions
Provisions are recognized when the Group has a present obligation related to a contingency it is
probable result in an outflow of economic benefits to settle the obligation and the amount of the
obligation can be measured reliably.The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date taking into account factors pertaining to a contingency
such as the risks uncertainties and time value of money. Where the effect of the time value of money
is material the amount of the provision is determined by discounting the related future cash
outflows.If all or part of the expenses required to settle the estimated liabilities are expected to be
compensated by a third party the compensation amount will be separately recognized as assets
when it is basically determined that it can be received and the recognized compensation amount
will not exceed the book value of the estimated liabilities.
22. Employee benefits
22.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make full payments
within 12 months after the annual reporting period during which relevant services are provided by
the employees except the post-employment benefits and termination benefits. Specifically the
short-term benefits include: employee salaries bonuses allowances and subsidies employee
benefits social insurance contributions such as the medical insurance and the work injury insurance
housing funds trade union funds and employee education funds short-term paid absence short-
term profit sharing plan non-monetary welfare and other short-term benefits.Short-term employee benefits payable are recognized as liabilities with a corresponding charge to
profit or loss for the period or in the costs of relevant assets according to the beneficiaries of services
provided by employees in the accounting period in which employees provide services to the Group.Staff welfare expenses incurred by the Group are recognized in profit or loss for the 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.- 59 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.1 Short-term employee benefits - continued
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance work injury insurance and maternity insurance etc. and
payments of housing funds as well as union running costs and employee education costs provided
in accordance with relevant requirements are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities
with a corresponding charge to profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
22.2 Post-employment benefits
Post-employment benefits refer to the rewards and benefits of various forms provided by the Group
after the employees have retired or terminated the labor relationship with the enterprise for the
services rendered by the employees except the short-term benefits and the termination benefits.The post-employment benefits consist of the pension insurance the annuity the unemployment
insurance and other post-employment benefits.Post-employment benefit plans are classified by the Group into defined contribution plans and
defined benefit plans. The post-employment benefit plan refers to the agreements the Group entered
into with the employees on the post-employment benefits or the regulations or measures established
by the Group for provisions of the post-employee benefits among which the defined contribution
plans refer to the post-employment benefit plan under which the Group shall no longer undertake
any obligations of payments after paying fixed expenses to independent funds; the defined benefit
plans refer to the post-employment benefit plans other than the defined contribution plans. During
the accounting period in which employees render services to the Group the amounts payable
calculated based on the defined contribution plans are recognized as liabilities and included in profit
or loss for the period or costs of related assets.For defined benefit plans the Group attributes the welfare obligations arising from the defined
benefit plans to the period in which employees provide services to the Group according to the
formula determined based on the projected cumulative benefit unit method and includes them in
profit or loss for the period or costs of related assets. Defined benefit costs are categorized as follows:
Service cost (including current service cost past service cost as well as gains and losses on
settlements);
Net interest of net liabilities or assets of defined benefit plans (including interest income of
planned assets interest expenses of defined benefit plan liabilities and effect of asset ceiling);
and
Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.- 60 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.2 Post-employment benefits - continued
Service costs and net interest of net liabilities and net assets of defined benefit plans are recognized
in profit or loss for the period or costs of related assets. Remeasurement of the net defined benefit
liabilities (assets) (including actuarial gains and losses the return on planned assets excluding
amounts included in net interest on net defined benefit liabilities (assets) and any changes in the
effect of the asset ceiling excluding amounts included in net interest on net defined benefit
liabilities (assets)) are recognized in other comprehensive income.The deficit or surplus resulting from the present value of the defined benefit plan obligations less
the fair value of the defined benefit plan assets is recognized as a net defined benefit plan liability
or net asset.
22.3 Termination benefits
Termination benefits refer to the compensations the Group pay to the employees for terminating the
employment relationship with employees before the expiry of the employment contracts or
encouraging employees to accept voluntary redundancy. When the Group provides termination
benefits to employees employee benefit liabilities are recognized for termination benefits with a
corresponding charge to profit or loss for the period at the earlier of: (1) when the Group cannot
unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group has a detailed and formal restructuring plan involving
the payment of dismissal benefit; In addition the restructuring plan has been implemented or the
main contents of the plan have been notified to the affected parties so that all parties have formed
a reasonable expectation that the Group will implement the restructuring.
22.4 Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except for short-term benefits
post-employment benefits and termination benefits.Other long-term employee benefits that qualify as defined contribution plans are treated in
accordance with the relevant provisions of the defined contribution plans mentioned above except
that the net liability or net asset for other long-term employee benefits is recognized and measured
in accordance with the relevant provisions of the defined benefit plans. At the end of the reporting
period employee compensation costs arising from other long-term employee benefits are
recognized as three components: service cost net interest on net liability or net asset for other long-
term employee benefits and changes resulting from the remeasurement of the net liability or net
asset for other long-term employee benefits. The total net amount of these items is included in profit
or loss for the period or in the costs of related assets.- 61 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Employee benefits - continued
22.4 Other long-term employee benefits - continued
The Group provides internal retirement benefits to employees accepting the internal retirement
arrangements. Internal retirement benefits refer to the payments of salaries and social security
contributions for employees who have not reached the retirement age regulated by the country and
are approved to quit the job voluntarily. For internal retirement benefits the internal retirement
benefits the Group is expected to pay during the period from the date when employees stop
providing services to the date of normal retirement are recognized as liabilities at the present
valueand included in profit or loss for the period when relevant recognition requirements of the
internal retirement benefits are met.
23. Share-based payments
A share-based payment is a transaction which the Group grants equity instruments in return for
services rendered by employees or other parties. The Group's share-based payments include equity-
settled share-based payments.Equity-settled share-based payments in exchange for services rendered by employees are measured
at fair value of the equity instruments granted to employees at the grant date. Such amount is
recognized as related costs or expenses on a straight-line basis over the vesting period based on the
best estimate of the number of equity instruments expected to vest/ as related costs or expenses at
the grant date if the equity instruments could be vested immediately with a corresponding increase
in capital reserve.
24. Bonds payable
The Group's bonds payable are measured at fair value when initially recognized and relevant
transaction costs are included in the initially recognized amount. It is subsequently measured at
amortized cost.The difference between the bond issue price and the total face value of the bonds is regarded as the
bond premium or discount which is amortized at the time of interest accrual according to the
effective interest method during the duration of the bonds and is treated according to the principle
of handling borrowing costs.
25. Preference shares perpetual bonds and other financial instruments
The actual issue price for the issuance of equity instruments is included in shareholders' equity after
deducting relevant transaction costs from shareholders’ equity (capital reserve). If the capital
reserve is insufficient to offset surplus reserve and retained earnings will be offset in turn. The
consideration and transaction costs paid for repurchasing the Group's equity instruments reduce
shareholders’ equity.- 62 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Preference shares perpetual bonds and other financial instruments - continued
The Group classifies financial instruments or their components as financial liabilities or equity
instruments at initial recognition based on the contractual terms of the issued perpetual bonds and
their reflected economic substance combined with the definitions of financial liabilities and equity
instruments.For financial instruments such as perpetual bonds classified as equity instruments interest expense
or dividend (dividend) distributions are treated as profit distributions of the Group and their
repurchases write-offs etc. are treated as changes in equity and related transaction costs are
deducted from equity.
26. Revenue recognition
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business
Revenue refers to the total inflow of economic benefits formed in the daily activities of the Group
which will lead to the increase of owner's equity and has nothing to do with the capital invested by
owners. The Group's revenue is mainly from port business bonded logistics business and other
businesses.The Group recognizes revenue based on the transaction price allocated to the performance
obligation when the Group satisfies a performance obligation in the contract namely when the
customer obtains control over relevant goods or services. A performance obligation is a
commitment that the Group transfers a distinct goods or service to a customer in the contract. The
transaction price is the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to a customer excluding amounts collected
on behalf of third parties and amounts expected to be refunded to a customer. The transaction price
recognized by the Group does not exceed the amount of accumulated recognized revenue that is
unlikely to be significantly reversed when the relevant uncertainty is eliminated.The Group evaluates the contract on the contract start date identifies each individual performance
obligation contained in the contract and determines whether each individual performance
obligation is performed within a certain period or at a certain time point. It is a performance
obligation satisfied during a period of time and the Group recognizes revenue during a period of
time according to the progress of performance if one of the following conditions is met: (i) the
customer obtains and consumes economic benefits at the same time of the Group's performance; (ii)
the customer is able to control goods or services in progress during the Group's performance; (iii)
goods or services generated during the Group's performance have irreplaceable utilization and the
Group is entitled to collect amounts of cumulative performance part which have been done up to
now. Otherwise revenue is recognized at a point in time when the customer obtains control over
the relevant goods or services.- 63 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
The Group adopts output method i.e. the value of goods or services transferred to customers to
determine the appropriate progress of performance. Where the progress cannot be determined
reasonably the revenue is recognized based on the amount of cost that is expected to be
compensated based on the cost already incurred until the progress of performance is reasonably
determined.Contract assets refer to the right that the Group has transferred goods or services to customers and
is entitled to receive consideration and the right depends on other factors other than the passage of
time. Please refer to Note (IV) 11 for details of the accounting policies for the impairment of
contract assets. The Group's unconditional (that is only depending on the passage of time) right to
collect consideration from customers is separately listed as receivables.Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for
consideration received or receivable from the customer.Contract assets and contract liabilities under the same contract are presented in net amount.If there are two or more of performance obligations included in the contract at the inception of the
contract the Group allocates the transaction price to each single performance obligation based on
the proportion of stand-alone selling price of goods or services promised in each stand-alone
performance obligation. However if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not the whole) performance
obligations in the contract the Group will allocate the contract discount or variable consideration
to relative one or more performance obligations. Stand-alone selling price refers to the price of a
single sale of goods or services. If the stand-alone selling price cannot be observed directly the
Group estimates the stand-alone selling price through comprehensive consideration of all relative
information that can be reasonably acquired and maximum use of observable inputs.In case of the existence of variable consideration (such as sales discount) in the contract the Group
shall determine the best estimate of variable consideration based on the expected value or the most
probably occurred amount. The transaction price including variable consideration shall not exceed
the amount of the cumulatively recognized revenue which is unlikely to be significantly reversed
when relevant uncertainty is eliminated. At each balance sheet date the Group re-estimates the
amount of variable consideration which should be included in transaction price.If the customer pays non-cash consideration the Group determines the transaction price based on
the fair value of the non-cash consideration. If the fair value of non-cash consideration cannot be
reasonably estimated the Group shall determine the transaction price indirectly by reference to the
stand-alone selling price of the goods or services promised to transfer to the customer.- 64 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
In case of the existence of a significant financing component in the contract the Group shall
determine the transaction price on the assumption that the customer has paid the amount payable
by cash when obtaining the control over the goods or services. Differences between transaction
price and contract consideration are amortized using effective interest method during the contract
life. At the inception of the contract if the period between when the Group transfers a promised
goods or service to a customer and when the customer pays for that goods or service will be one
year or less the Group would not consider the significant component in the contract.The Group assesses whether it controls each specified goods or service before that goods or service
is transferred to the customer to determine whether the Group is a principal or an agent. If the Group
controls the specified good or service before that good or service is transferred to a customer the
Group is a principal and recognizes revenue in the gross amount of consideration received or
receivable. Otherwise the Group is an agent and recognizes revenue in the amount of any fee or
commission to which it expects to be entitled. The fee or commission is the net amount of
consideration that the Group retains after paying the other party the consideration received in
exchange for the goods or services to be provided by that party or is determined in accordance with
the established commission amount or percentage etc.Where the Group receives receipts in advance from a customer for sales of goods or rendering of
services the amount is first recognized as a liability and then transferred to revenue when the related
performance obligation has been satisfied. When the Group's advance payments received are not
required to be refunded and it is probable that the customer will waive all or part of its contractual
rights the Group recognizes the said amounts as revenue on a pro-rata basis in accordance with the
pattern of exercise of the customer's contractual rights if the Group expects to be entitled to the
amounts relating to the contractual rights waived by the customer; otherwise the Group reverses
the related balance of the said liabilities to revenue only when it is highly unlikely that the customer
will require performance of the remaining performance obligations.For port business the revenue from the handling of containers and bulk cargos is recognized over
time based on the progress of completed services and the revenue from the storage of containers
and bulk cargos is recognized on a straight-line basis over the period of storage.For bonded logistics business the revenue is recognized based on the progress of services rendered
where the progress of completed services is determined based on the proportion of days on services
provided to the estimated total number of service days. As at the balance sheet date the Group has
re-estimated the progress of completed bonded logistics service so that it reflects the changes in
performance status.- 65 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Revenue recognition - continued
26.2 Similar operations under different business models which involve different revenue
recognition and measurement methods
The Group has no similar operations under different business models which involve different
revenue recognition and measurement methods.
26.3 Costs of obtaining a contract
For the incremental cost of obtaining the contract (cost that will not occur if the contract is not
obtained) that is expected to be recoverable it is recognized as an asset. If the amortization period
of such asset is less than one year it is recognized in profit or loss for the period when incurred.Other expenses incurred for obtaining the contract is included in profit or loss for the period when
incurred except for those explicitly assumed by the customer.
26.4 Costs to fulfil a contract
If the costs incurred in fulfilling a contract are not within the scope of any standards other than
Revenue Standards the Group recognizes an asset only if those costs meet all of the following
criteria: (1) the costs relate directly to a contract or to an anticipated contract that the Group can
specifically identify; (2) the costs enhance resources of the Group that will be used in satisfying
performance obligations in the future; and (3) the costs are expected to be recovered. The asset
mentioned above shall be amortized on a basis that is consistent with the revenue recognition of the
goods or services to which the asset relates and recognized in profit or loss for the period.
27. Government grants
Government grants refer to monetary assets and non-monetary assets obtained by the Group from
the government free of charge. Government grants are recognized when they can meet the
conditions attached to government grants and can be received.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset it is measured
at fair value. If the fair value cannot be reliably determined it is measured at a nominal amount. A
government grant measured at a nominal amount is recognized immediately in profit or loss for the
period.- 66 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Government grants - continued
27.1 Determination basis and accounting treatment of government grant related to assets
Government grants of the Group mainly include grants for intelligent system etc. and these
government grants relate to assets as they will form long-term assets.A government grant related to an asset is recognized as deferred income and included in profit or
loss by stages over the useful life of the related asset in a reasonable and systematic way. A
government grant measured at a nominal amount is recognized immediately in profit or loss in the
current period. Where the relevant asset is sold transferred retired or damaged prior to the end of
its useful life the related undistributed deferred income is transferred to profit or loss of the disposal
period.
27.2 Determination basis and accounting treatment of government grant related to income
Government grants of the Group mainly include grants for business development and specialized
operations etc. and these government grants relate to income as they will not form long-term assets.The Group classifies government grants that are difficult to be distinguished as government grants
related to income aggregately.For a government grant related to income if the grant is a compensation for related expenses or
losses to be incurred in subsequent periods the grant is recognized as deferred income and
recognized in profit or loss for the period in which the related costs or losses are recognized; If the
grant is a compensation for related expenses or losses already incurred the grant is recognized
immediately in profit or loss.A government grant related to the Group's daily activities is recognized in other income; a
government grant not related to the Group's daily activities is recognized in non-operating income.
28. Borrowing costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition construction or production of a qualifying asset is interrupted abnormally and when the
interruption is for a continuous period of more than 3 months. Capitalization 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.- 67 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Borrowing costs - continued
Where funds are borrowed under a specific-purpose borrowing the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds. Where funds are borrowed under general-
purpose borrowings the Group determines the amount of interest to be capitalized on such
borrowings by applying a capitalization rate to the weighted average of the excess of cumulative
expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate
is the weighted average of the interest rates applicable to the general-purpose borrowings. During
the capitalization period exchange differences related to a specific-purpose borrowing denominated
in foreign currency are all capitalized. Exchange differences in connection with general-purpose
borrowings are recognized in profit or loss for the period in which they are incurred.
29. Income tax
The income tax expenses include current income tax and deferred income tax.
29.1 Current income tax
At the balance sheet date current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of tax
laws.
29.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax
base or between the nil carrying amount of those items that are not recognized as assets or liabilities
and their tax base that can be determined according to tax laws deferred tax assets and liabilities
are recognized using the balance sheet liability method.Deferred income tax are generally recognized for all taxable temporary differences. Deferred tax
assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.However for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction which is not a business
combination that affects neither the accounting profit nor taxable profits (or deductible losses) and
will not result in taxable temporary differences and deductible temporary differences in equivalent
amounts at the time of transaction no deferred tax asset or liability is recognized.For deductible losses and tax credits that can be carried forward deferred tax assets are recognized
to the extent that it is probable that future taxable profits will be available against which the
deductible losses and tax credits can be utilized.- 68 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Deferred tax assets/ deferred tax liabilities - continued
29.2 Deferred tax assets and deferred tax liabilities - continued
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries associates and joint ventures except where the Group is able to control
the timing of the reversal of the temporary differences and it is probable that the temporary
differences will not be reversed in the foreseeable future. Deferred tax assets arising from deductible
temporary differences associated with investments in subsidiaries associates and joint ventures are
recognized to the extent that it is probable that future taxable profits will be available against which
the deductible temporary differences can be utilized and they are expected to be reversed in the
foreseeable future.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates applicable
in the period in which the asset is realized or the liability is settled according to tax laws.Current and deferred tax expenses or income are recognized in profit or loss for the period except
when they arise from transactions or events that are directly recognized in other comprehensive
income or shareholders' equity in which case they are recognized in other comprehensive income
or shareholders' equity and when they arise from business combinations in which case they adjust
the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the benefit
of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes
probable that sufficient taxable profits will be available.
29.3 Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously current tax assets and current tax
liabilities are offset and presented on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed deferred tax assets and deferred tax liabilities are offset and presented on a net basis.- 69 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies
30.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded on initial recognition by applying the spot exchange
rate on the date of the transaction.At the balance sheet date foreign currency monetary items are translated into functional currency
using the spot exchange rates at the balance sheet date. Exchange differences arising from the
differences between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognized in profit or loss for the period
except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign
currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset
during the capitalization period; (2) exchange differences related to hedging instruments for the
purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3)
exchange differences arising from changes in the carrying amounts (other than the amortized cost)
of monetary items at fair value through other comprehensive income are recognized as other
comprehensive income.When the consolidated financial statements include foreign operation(s) if there is foreign currency
monetary item constituting a net investment in a foreign operation exchange differences arising
from changes in exchange rates are recognized as "exchange differences arising from translation of
financial statements denominated in foreign currencies" in other comprehensive income and in
profit or loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions. Foreign currency
non-monetary items measured at fair value are re-translated at the spot exchange rate on the date
when the fair value is determined. Difference between the re-translated functional currency amount
and the original functional currency amount is treated as changes in fair value (including changes
in exchange rate) and is recognized in profit or loss or as other comprehensive income.- 70 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
30.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements financial statements of a foreign
operation are translated from the foreign currency into RMB using the following method: assets
and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance
sheet date; shareholders' equity items except for translation differences arising from translation of
foreign currency financial statements items in retained earnings and other comprehensive income
are translated at the spot exchange rates at the dates on which such items arose; all items in the
income statement as well as items reflecting the distribution of profits are translated at the average
exchange rates of the accounting period of the consolidated financial statements; retained earnings
at the beginning of the year are the converted year-end retained earnings of the previous year. The
year-end retained earnings are calculated and presented in accordance with the items of profit
distribution after conversion. The difference between the translated assets and the aggregate of
liabilities and shareholders' equity items is recognized as other comprehensive income and included
in shareholders' equity.Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary
are translated at average exchange rate during the accounting period of consolidated financial
statements. The effect of exchange rate changes on cash and cash equivalents is regarded as a
reconciling item and presented separately in the cash flow statement as "effect of exchange rate
changes on cash and cash equivalents".The amount at the beginning of the year and the comparative figures of previous year are presented
at the translated amounts in the previous year's financial statements.On disposal of the Group's entire interest in a foreign operation or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons the Group transfers the
accumulated exchange differences arising from translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under other
comprehensive income to profit or loss in the period in which the disposal occurs.In case of a disposal of part equity investments or other reason leading to lower interest percentage
in foreign operations but does not result in the Group losing control over a foreign operation the
exchange differences arising from the translation difference of financial statements denominated in
foreign currencies related to this disposed part are re-attributed to non-controlling interests and are
not recognized in profit or loss. For partial disposals of equity interests in foreign operations which
are associates or joint ventures the proportionate share of the accumulated exchange differences
arising from translation difference of financial statements denominated in foreign currencies is
reclassified to profit or loss.- 71 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases
A lease is a contract in which the lessor for a certain period of time gives the lessee the right to
use the assets to obtain a consideration.On the contract start date the Group assesses whether the contract is a lease or includes a lease. If
one party in the contract transfers the right to control the use of one or more identified assets within
a certain period in exchange for consideration the contract is a lease or includes a lease. Unless the
contract terms and conditions change the Group will not re-evaluate whether the contract is a lease
or includes a lease.
31.1 The Group as lessee
31.1.1 Separating components of a lease
For a contract that contains one or more lease components or non-lease components the Group
separates each individual lease and non-lease component and allocates the contract consideration
in the relative proportion of the sum of the individual price of each lease component and the
individual price of the non-lease component.
31.1.2 Right-of-use assets
Except for short-term leases and leases of low-value assets the Group 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.- 72 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as lessee - continued
31.1.3 Lease liabilities
Except for short-term leases and leases of low-value assets the Group initially measures lease
liabilities at the present value of the outstanding lease payments at the commencement date. In
calculating the present value of the lease payments the Group uses the implicit interest rate of the
lease as the discount rate. If it is not possible to determine the implicit interest rate of the lease the
incremental borrowing rate shall be applied.The lease payments comprise the following payments by the Group for the right to use the
underlying asset during the lease term:
fixed payments (including in-substance fixed payments) less any lease incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option if the Group is reasonably certain to exercise that
option.payments for terminating the lease if the lease term reflects the Group exercising an option
to terminate the lease.amounts expected to be payable by the Group under residual value guarantees.Variable lease payments that depend on an index or a rate are initially measured using the index or
rate as at the commencement date. Variable lease payments not included in the measurement of the
lease liabilities are recognized in profit or loss or in the cost of relevant assets in the period of
those payments.After the commencement date interest expenses on the lease liabilities in each period during the
lease term is calculated by a constant periodic rate of interest and included in profit or loss or
charged to cost of related assets.After the commencement date the Group shall remeasure the lease liabilities and make
corresponding adjustments to the related right-of-use assets in the following circumstances. If the
carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the
measurement of the lease liabilities the Group shall recognize the difference in profit or loss:
where there is a change in the lease term or in the assessment of an option to purchase the
underlying asset the Group remeasures the lease liabilities on the basis of the revised leases
payments and the revised discount rate.where there is a change in the amounts expected to be payable under a residual value guarantee
or in future lease payments resulting from a change in an index or a rate used to determine
those payments the Group remeasures the lease liabilities on the basis of the revised lease
payments and the unchanged discount rate unless the change in the lease payments results
from a change in floating interest rates in which case a revised discount rate is applied to
calculate the present value.- 73 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as lessee - continued
31.1.4 Short-term leases and leases of low-value assets
The Group elects not to recognize right-of-use assets or lease liabilities for short-term leases and
leases of low-value assets i.e. port and terminal facilities buildings machinery and equipment
furniture fixture and other equipment motor vehicles and cargo ships and others. A short-term
lease is a lease that at the commencement date has a lease term of 12 months or less and does not
contain a call option. A lease of low-value assets is a lease that the value of the underlying asset is
lower when it is new. For short-term leases and leases of low-value assets the Group recognizes
the lease payments in profit or loss or in the cost of related assets on a straight-line basis over each
period within the lease term.
31.1.5 Lease modifications
A lease modification should be accounted for as a separate lease if both of the following apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets.the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price
according to the circumstances of the particular contract.For a lease medication that is not accounted for as a separate lease at the effective date of the lease
modification the Group should allocate the consideration in the modified contract determine the
lease term of the modified lease and remeasure the lease liabilities based on the present value of the
changed lease payments and the revised discount rate.For lease modifications that decrease the scope of the lease or shorten the term of the lease the
Group should decrease the carrying amount of the right-of-use assets with any gain or loss relating
to the partial or full termination of the lease recognized in profit or loss. For re-measurement of
lease liabilities due to other lease modifications a corresponding adjustment is made to the carrying
amount of the right-of-use assets.- 74 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.1 The Group as lessee - continued
31.1.6 Sale and leaseback transactions
The Group as seller-lessee
The Group applies the requirements of Revenue Standard to determine whether the transfer of an
asset is accounted for as a sale of that asset. If the transfer of an asset does not constitute a sale the
Group shall continue to recognize the transferred assets recognize a financial liability equal to the
transfer proceeds and accounts for such financial liability in accordance with the Accounting
Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and Measurement.If the transfer of an asset is a sale the Group shall measure the right-of-use assets arising from the
leaseback at the proportion of the previous carrying amount of the asset that relates to the right of
use and recognize any gain or loss for rights transferred to the lessor only.
31.2 The Group as lessor
31.2.1 Separating components of a lease
For a contract that contains lease components and non-lease components the Group allocates the
contract consideration in accordance with the Revenue Standards on allocation of transaction prices
based on the respective individual prices of the lease components and the non-lease components.
31.2.2 Classification of leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership. All other leases are classified as operating leases.
31.2.2.1 The Group as lessor under operating leases
The Group recognizes lease receipts from operating leases as rental income using a straight-line
method over the respective periods of the lease term. The Group's initial direct costs incurred in
connection with operating leases are capitalized when the costs incurred and are allocated to profit
or loss for the period over the lease term on the same basis as the recognition of rental income.Variable lease receipts acquired by the Group in connection with operating leases that are not
included in the lease receipts are recognized in profit or loss for the period when they are actually
incurred.- 75 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor - continued
31.2.2 Classification of leases - continued
31.2.2.2 The Group as lessor under finance leases
At the commencement date the Group recognizes a finance lease receivable at the amount equal to
the net lease investment with assets under finance lease derecognized. The net lease investment is
the sum of any unguaranteed residual value and the present value of the lease receipts over the lease
term discounted at the interest rate implicit in lease.The lease receivable comprises the following payments collected by the Group from the lessee for
the transfer of the right to use the underlying assets during the lease term:
fixed payments (including in-substance fixed payments) paid by the lessee less any lease
incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option provided that it is reasonably determined that the
lessee will exercise the option.payments for terminating the lease provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
residual value of guarantee provided to the Group by the lessee a party related to the lessee
and an independent third party with the financial ability to fulfil the guarantee obligations.Variable lease receipts not included in the net lease investment are recognized in profit or loss when
they are actually incurred.Interest income for each period over the lease term is calculated and recognized by the Group at a
fixed periodic rate.
31.2.3 Subleases
As the lessor of a sublease the Group accounts for the original lease contract and the sublease
contract on a separate basis. The Group classifies the subleases based on the right-of-use assets
generating from the original lease rather than the underlying assets of the original lease.- 76 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Leases - continued
31.2 The Group as lessor - continued
31.2.4 Lease modifications
The Group accounts for a modification to an operating lease as a new lease from the effective date
of the modification considering any lease advances or receivables relating to the original lease as
the lease receipts for the new lease.A lease modification should be accounted for as a separate lease if there is a modification in a
finance lease and both of the followings apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope with any appropriate adjustment to that stand-alone price.For a modification to a finance lease that is not accounted for as a separate lease the Group accounts
for the modification as follows:
If the lease would have been classified as an operating lease had the modification been
effective at the commencement date the Group should account for the lease modification as
a new lease from the effective date of the modification and measure the carrying amount of
the underlying assets at the amount equal to the net lease investment before the effective date
of the modification;
If the lease would have been classified as a finance lease had the modification been effective
at the commencement date the Group should account for it in accordance with the provisions
on contract modification and renegotiation under Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement.
31.2.5 Sale and leaseback transactions
The Group as the buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale the Group
does not recognize the transferred asset but a financial asset at an amount equal to the transfer
proceeds and accounts for such financial asset under the Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement. If the transfer of an
asset constitutes a sale the Group accounts for the purchase of the asset in accordance with other
applicable Accounting Standards for Business Enterprises and accounts for the lease of the asset.- 77 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Safety production cost
According to the Administrative Measures for the Collection and Utilization of Enterprise Work
Safety Funds (Cai Zi [2022] No. 136) jointly issued by the Ministry of Finance and the Emergency
Department on 13 December 2022 safety production cost set aside by the Group is directly included
in the cost of relevant products or recognized in profit or loss for the period and transferred to
specific reserve simultaneously. When safety production cost set aside is utilized if the costs
incurred can be categorized as expenditure the costs incurred should be charged against the specific
reserve. If the costs set aside are used to build up fixed assets the costs should be charged to
construction in progress and reclassified to fixed assets when the safety projects are ready for
intended use. Meantime expenditures in building up fixed assets are directly charged against the
specific reserve with the accumulated depreciation recognized at the same amount. Depreciation
will not be made in the future period on such fixed assets.
33. Exchange of non-monetary assets
When the non-monetary assets are of commercial substance and the fair value of assets received or
the assets given up can be measured reliably the non-monetary transactions are measured at fair
value. For the asset received the fair value of the asset given up and related taxes payable are
recognized as the cost at initial recognition; For the asset given up at derecognition the difference
between the fair value and the carrying amount is recognized in profit or loss for the current period.When there is clear evidence indicating that the fair value of the received asset is more reliable for
the asset received the fair value of the asset received and related taxes payable are recognized as
the cost at initial recognition; For the asset given up at derecognition the difference between the
fair value of the asset received and the carrying amount of the asset given up is recognized in profit
or loss for the current period.When the non-monetary transactions fail to meet criteria to be measured at fair value the
transactions are measured at carrying amounts. For the asset received the carrying amount of the
asset given up and relevant taxes payable are recognized as the cost of at initial recognition. For the
asset given up at derecognition no profit or loss is recognized.- 78 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies and accounting estimates as set out in Note (IV) the Group
is required to make judgments estimates and assumptions about the carrying amounts of items in
the financial statements that cannot be measured accurately due to the internal uncertainty of the
operating activities. These judgments estimates and assumptions are based on historical experience
of the Group's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.The Group regularly reviews the judgments estimates and assumptions on a going concern basis.Changes in accounting estimates which only affect the current period should be recognized in the
current period; changes which not only affect the current but the future periods should be recognized
in the current and future periods.
1. Key assumptions and uncertainties used in important judgments and accounting
estimates
At the balance sheet date key assumptions and uncertainties in critical judgments and accounting
estimates that are likely to lead to significant adjustments to the carrying amounts of assets and
liabilities in the future are as follows:
1.1 Goodwill impairment
The book value of goodwill on 31 December 2024 is RMB 5933310929.34. The Group will
conduct impairment testing on goodwill at least annually. For the purpose of impairment testing
the recoverable amount of each assets group and combination of assets groups that generate
goodwill of the Group is determined by fair value less estimated disposal expenses and by the
present value of estimated future cash flows which involve the judgment of management.
1.2 Recognition of deferred income tax
The Group calculates and makes provision for deferred tax liabilities according to the profit
distribution plans of subsidiaries associates and joint ventures and relevant provisions of tax law.For retained earnings of the investee which are not expected to be distributed since the profits will
be used for the daily operation and future development of the investee no deferred tax liabilities
are recognized. If the profits to be actually distributed in future years are more or less than those
expected corresponding deferred tax liabilities will be recognized or reversed in profit or loss for
the period at the earlier of the date on which the profit distribution plan is changed and the date on
which the profit distribution is declared.Deferred tax assets are recognized based on the deductible temporary differences and the
corresponding tax rate to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
future years are more or less than that expected corresponding deferred tax assets will be
recognized or reversed in profit or loss for the period in which they are actually incurred.- 79 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES - continued
1. Key assumptions and uncertainties used in important judgments and accounting
estimates - continued
1.3 Estimated useful lives and residual value of fixed assets and intangible assets
The Group assesses the estimated useful lives and residual value of fixed assets and intangible assets.Such estimate is made by reference to the historical experience of actual useful lives and residual
value of fixed assets and intangible assets of similar nature and function and is subject to significant
changes due to technical innovation and fierce industry competition. Where the estimated useful
lives and residual value of fixed assets and intangible assets are less than the previous estimates
the Group will increase the depreciation and amortization or write off or eliminate the technically
obsolete fixed assets or intangible assets.(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
1. Changes in significant accounting policies and their impacts
(1) For the year ended 31 December 2024 the Group implemented the relevant provisions and
guidelines of the Accounting Standards for Business Enterprises issued by the Ministry of Finance
in recent years mainly including:
1) Provisions on "Division of current liabilities and non-current liabilities" in Accounting Standards
for Business Enterprises Interpretation No. 17 (CK [2023] No. 21) (hereinafter referred to as
"Interpretation No. 17")
According to Interpretation No. 17 when the Group classifies the liquidity of liabilities it only
considers whether the Group has the substantive right to postpone the settlement of liabilities to
more than one year after the balance sheet date (hereinafter referred to as "the right to postpone the
settlement of liabilities") without considering whether the Group has the subjective possibility of
exercising the above rights.For the liabilities arising from the Group's loan arrangements if the right of the Group to postpone
the repayment of the liabilities depends on whether the Group has complied with the conditions
specified in the loan arrangements (hereinafter referred to as "contractual conditions") the Group
only considers the contractual conditions that should be complied with on or before the balance
sheet date when dividing the liquidity of the relevant liabilities without considering the impact of
contractual conditions that should be complied with by the Group after the balance sheet date.- 80 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(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 and their impacts - continued
If the Group classifies the above options as equity instruments and recognizes them separately as
equity components of composite financial instruments in accordance with the Accounting Standards
for Business Enterprises No. 37- Presentation of financial instruments the liquidity division of the
liabilities that the Group pays off by delivering its own equity instruments at the option of the
counterparty will not be affected; On the contrary if the above options cannot be classified as equity
instruments it will affect the liquidity classification of the liabilities.The adoption of this provision has not had a significant impact on the Group's financial position and
operating results.
2) Provisions on "Accounting treatment for quality assurance of guarantee type that does not belong
to individual performance obligations" in Accounting Standards for Business Enterprises
Interpretation No. 18 (CK [2024] No. 24) (hereinafter referred to as "Interpretation No. 18").According to the provisions of Interpretation No. 18 the company will include the accrued warranty
cost in the " operating costs ".The adoption of this provision has not had a significant impact on the Company's financial position
and operating results.(VII) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
Taxable income 8.25%-34% (Note 1)
Enterprise income tax
Dividend income tax 5%10% (Note 2)
Income from sale of goods 9%13%
Income from transportation loading and
unloading business and part of modern 6%
Value-added tax (Note 3)
service industries
(hereinafter referred to as "VAT")
Income from sale of real estate property
3%5%9%
management lease of real estate etc.Income from leases of movable properties 13%
Social contribution tax (Note 4) Income 0.65%-7.6%
Deed tax Land use right and property transfer amount 3%-5%
Property tax 70% of cost of property or rental income 1.2% or 12%
City maintenance and
VAT paid 1%-7%
construction tax
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 1-12 per square meter
Amount of pollution equivalents of the
RMB 1.2-1.8 per pollution
Environmental protection tax taxable air pollutants converted based on the
equivalent
quantity of pollutions discharged
- 81 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated by
local tax laws. Among them the Company is subject to an enterprise income tax rate of
25% the subsidiaries set up in Hong Kong are subject to an enterprise income tax rate of
8.25% and 16.5% the majority of subsidiaries set up in China are subject to an enterprise
income tax rate of 25% and the other overseas subsidiaries are subject to enterprise
income tax rates between 10% and 34%.The Company obtains dividends distributed by overseas subsidiaries and should pay
enterprise income tax at a rate of 25% in accordance with relevant Chinese tax laws. The
Company obtains taxable income outside of China and the amount of income tax that has
been paid abroad can be offset with the current taxable amount. The credit limit is the
taxable amount calculated in accordance with the provisions of the Enterprise Income Tax
Law.Note 2: Foreign investors who receive dividends of profits from Chinese subsidiaries in 2008 and
thereafter generally shall pay withholding income tax at a rate of 10% in accordance with
the relevant provisions on the PRC enterprise income tax. For companies incorporated in
certain regions (including Hong Kong and Singapore) if the companies meet relevant
conditions they will enjoy a preferential tax rate of 5%.Note 3: The VAT amount is the balance of the output tax less the deductible input tax and the
output tax is calculated in accordance with the sales income and the corresponding tax rate
stipulated in the relevant tax laws of China.Note 4: The social contribution tax is the tax paid by TCP Participa??es S.A. (hereinafter referred
to as "TCP") an overseas subsidiary of the Group to the local government.
2. Tax preference and approval documents
Certain subsidiaries of the Group in China are recognized as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. Some of
Group's some subsidiaries inside of China may pay corporate income tax at the rate of 15%
according to the preferential policies of Qianhai Shenzhen Hong Kong Modern Service Industry
Cooperation Zone.- 82 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
2. Tax preference and approval documents - continued
Certain subsidiaries of the Group in China are small and micro enterprises and are subject to a
preferential tax rate of 20%. In accordance with the Announcement on Relevant Tax and Fee
Policies for Further Supporting the Development of Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 of the Ministry of Finance and the
State Administration of Taxation in 2023) for small and micro enterprises the taxable income is
calculated at a reduced rate of 25% and the enterprise income tax is paid at a rate of 20% from 1
January 2023 and 31 December 2027.Some subsidiaries of the Group outside China can reduce or exempt corporate income tax according
to relevant local tax policies.From 1 January 2023 to 31 December 2027 the urban land use tax for certain domestic subsidiaries
of the Group on the land for bulk commodity storage facilities is levied at the reduced rate of 50%
of the tax amount applicable to the grade of the land.As approved by Shekou Taxation Sub-bureau of Shenzhen Tax Bureau State Administration of
Taxation on 12 October 2017 certain subsidiaries of the Group are exempted from VAT for
auxiliary logistics services (warehousing services excluding delivery services) provided to
overseas enterprises.(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
31/12/202431/12/2023
Item
Original Currency Exchange rate RMB Original Currency Exchange rate RMB
Cash —— —— 457486.90 —— —— 974692.93
Including: RMB 300.00 1.0000 300.00 2767.60 1.0000 2767.60
USD 1327.58 7.1884 9543.18 31847.37 7.0827 225565.37
HKD 6354.10 0.9260 5884.15 27873.90 0.9062 25259.89
Others 161212970.72 - 441759.57 37752399.93 - 721100.07
Bank deposits —— —— 11769350938.86 —— —— 13934385410.92
Including: RMB 7922930866.84 1.0000 7922930866.84 8215456953.08 1.0000 8215456953.08
USD 328306260.16 7.1884 2359996720.94 450261524.89 7.0827 3189067302.34
HKD 764174676.63 0.9260 707656317.54 1337109431.38 0.9062 1211715308.91
EUR 3955241.68 7.5257 29765962.32 83365808.01 7.8592 655188558.31
GBP 68592.09 9.0765 622576.10 - 9.0411 -
AUD 4590999.43 4.5070 20691634.43 7503763.11 4.8484 36381245.06
Others 340388882836.85 - 727686860.69 26946239115.00 - 626576043.22
Other cash and bank balances —— —— 114600721.02 —— —— 54207918.46
Including: RMB 74726938.79 1.0000 74726938.79 14920544.77 1.0000 14920544.77
HKD 283.50 0.9260 262.53 181.00 0.9062 164.03
Others 1622193641.17 - 39873519.70 1795121602.79 - 39287209.66
Cash deposited in the finance company 4745991554.35 1.0000 4745991554.35 2090078155.93 1.0000 2090078155.93
Total —— —— 16630400701.13 —— —— 16079646178.24
Including: Total amount of
5449122430.534143910318.92
funds deposited overseas
- 83 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
1. Cash and bank balances - continued
Note 1: The interest receivable at the end of the year amounted to RMB 35470534.89.Note 2: Cash deposited in the finance company included the interest receivable amounting to
RMB 35221381.65.Note 3: Restricted use of cash at bank and on hand at the end of the year.Item 31/12/2024 31/12/2023 Reasons for restricted use
Interest receivable 70691916.54 14497091.00 Not actually received
Performance bond 41064199.70 40482889.76 Not available for withdrawal at any time
Litigation freezing funds 1826085.98 1826085.98 Not available for withdrawal at any time
Bill deposit 1536194.00 N- ot available for withdrawal at any time
Guarantee deposit 2000.0 4214480.40 Not available for withdrawal at any time
ETC card frozen funds 12750. 120.0 Not available for withdrawal at any time
Total 115331146.22 61032547.14
2. Financial assets held for trading
Item 31/12/2024 31/12/2023
Financial assets classified as at FVTPL 5685135472.01 4568806108.84
Including: Investments in debt instruments - 450209.48
Structured deposits 5685135472.01 4568355899.36
Total 5685135472.01 4568806108.84
3. Bills receivable
(1) Category of bills receivable
Category 31/12/2024 31/12/2023
Bank acceptance 263127883.63 315150195.09
Commercial acceptance 7000000.00 10000000.00
Total 270127883.63 325150195.09
Note: For the year ended 31 December 2024 no provision for bad debts of bills receivable is
assessed on an individual basis and the acceptor of bank acceptance and commercial
acceptance for which provision for bad debts is assessed on a portfolio basis has high credit
ratings with no significant credit risks therefore no provision for bad debts is made.
(2) As at 31 December 2024 the Group has no bills receivable pledged.
(3) As at 31 December 2024 bills receivable endorsed or discounted by the Group and not yet
due on the balance sheet date.- 84 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
3. Bills receivable - continued
Amount Unrecognized
Item derecognized at amount at the end
the end of the year of the year
Bank acceptance 68052445.59 17496058.18
(4) As at 31 December 2024 the Group has no bills transferred to accounts receivable due to
the drawer's failure to perform.
(5) The Group has no bills receivable written off for the year ended 31 December 2024.
4. Accounts receivable
(1) Overall situation of accounts receivable
Category 31/12/2024 31/12/2023
Accounts receivable 1282371828.87 1194923829.34
Less: Provision for bad debts 88963445.09 91022363.09
Total 1193408383.78 1103901466.25
(2) Aging analysis of accounts receivable
31/12/202431/12/2023
Aging Provision for Provision for
Book value Proportion (%) Book value Proportion (%)
bad debts bad debts
Within 1 year (Including
1184171645.4592.343052874.641112613215.9993.119149366.89
1 year)
1-2 years (Including 2
25773736.312.0115217006.1523735983.671.918626841.23
years)
2-3 years (Including 3
18788751.531.4717375034.323139299.760.26793064.06
years)
More than 3 years 53637695.58 4.18 53318529.98 55435329.92 4.6 52453090.91
Total 1282371828.87 10.0 88963445.09 1194923829.34 10.0 91022363.09
- 85 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(3) Disclosure of accounts receivable by category
Book value Provision for bad debts
Credit Expected credit Aging Aging
Carrying amount Provision for bad debts
rating loss rate (%) More than 3 Total Within 1 More than 3 Total
Within 1 year 1-2 years 2-3 years 1-2 years 2-3 years
years year years
Accrued according to the
A 0.00-0.10 733738147.98 2297383.05 213471.96 21223.14 736270226.13 70851.91 193993.27 98320.55 21223.14 384388.87 735885837.26 expected loss rate of each
rating
Accrued according to the
B 0.10-0.30 365349709.55 3538705.53 1166853.33 262901.93 370318170.34 65045.30 241905.41 61748.61 262901.93 631601.25 369686569.09 expected loss rate of each
rating
Accrued according to the
C 0.30-50.00 80357827.67 2993912.02 38769.49 842481.25 84232990.43 367341.11 240254.71 38769.49 842481.25 1488846.56 82744143.87 expected loss rate of each
rating
D 50.00-100.00 4725960.25 16943735.71 17369656.75 52511089.26 91550441.97 2549636.32 14540852.76 17176195.67 52191923.66 86458608.41 5091833.56 Low probability of recovery
合计1184171645.4525773736.3118788751.5353637695.581282371828.873052874.6415217006.1517375034.3253318529.9888963445.091193408383.78
Including: Provision for bad debts assessed on an individual basis at the end of the year:
31 December 2024
Name Expected credit loss Reason for provision
Book value Provision for bad debts
rate (%)
Client 1 24908308.44 24908308.44 100.00 Low probability of recovery
Client 2 14965689.98 14965689.98 100.00 Low probability of recovery
Client 3 6304434.02 6304434.02 100.00 Low probability of recovery
Client 4 6104490.21 6104490.21 100.00 Low probability of recovery
Client 5 5700298.86 5700298.86 100.00 Low probability of recovery
Others 33567220.46 28475386.90 84.83 — —
Total 91550441.97 86458608.41 — —
- 86 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(4) Measurement of expected credit loss at an amount equivalent to the lifetime expected credit
loss
Lifetime expected Lifetime expected
Item credit loss (not credit loss (credit- Total
credit-impaired) impaired)
As at 1 January 2024 10695. 80402847.19 91022363.09
Book value of accounts receivable
as at 1 January 2024
- Transfer to credit-impaired accounts receivable -2750. 2727505.55 -
- Reversal of accounts receivable that are not
---
credit-impaired
Provision for the year 24351.9 6539340.03 8974855.96
Reversal for the year -67941.5 -407893.03 -7202807.78
Effect of changes in the scope of consolidation - 788447.74 788447.74
Write off in current year - -57892.46 -57892.46
Other changes -10274.85 -35746.1 -4561521.46
As at 31 December 2024 2504836. 86450.1 88963445.09
(5) For the year ended 31 December 2024 the Group has no significant provision for bad debts
recovered or reversed this year.
(6) Accounts receivable written off in the year
Arising from
Procedures
Item Nature Amount Reason for write-off related party
performed
transactions or not
Client 6 Service fees 47020.00 Confirmed as irrecoverable Yes No
Client 7 Service fees 8527.46 Confirmed as irrecoverable Yes No
Client 8 Service fees 2345.00 Confirmed as irrecoverable Yes No
Total — — 57892.46 — — — — — —
(7) The top five balances of accounts receivable at the end of the year classified by debtor
Proportion of the amount to
Name of Relationship Provision for bad
Book value Aging the total accounts
entity with the Group debts
receivable (%)
Client 9 Third party 289218829.81 Within 1 year 1-2 years 84976.90 22.55
Client 10 Third party 54619613.76 Within 1 year 1-2 years 11418.80 4.26
Client 11 Third party 47963363.49 Within 1 year 23473.72 3.74
Client 12 Third party 34630956.90 Within 1 year - 2.70
Client 13 Third party 30613764.04 Within 1 year 1-2 years 7978.88 2.39
Total 457046528.00 127848.30 35.64
- 87 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
5. Receivables under financing
(1) Classification of receivables under financing
Item 31/12/2024 31/12/2023
Bank acceptance measured at fair value - 2001669.46
(2) As at 31 December 2024 the Group has no pledged receivables under financing.
(3) At the end of the year there is no Company's receivables under financing that have been
endorsed or discounted and have not yet matured at the balance sheet date.
6. Prepayments
(1) Aging analysis of prepayments
31/12/202431/12/2023
Aging Proportion Impairment Proportion Impairment
Book value Book value
(%) provision (%) provision
Within 1 year (including 1 year) 58397947.01 98.69 - 36798888.01 97.70 -
1-2 years (including 2 year) 620707.85 1.05 - 615427.75 1.63 -
2-3 years (including 3 year) 8000.00 0.01 - 129361.04 0.34 -
More than 3 years 150462.36 0.25 - 120875.50 0.33 -
Total 59177117.22 100.00 - 37664552.30 100.00 -
(2) As at 31 December 2024 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
Relationship with Proportion in total
Name of entity 31/12/2024 Aging Provision for bad debts
the Company prepayments (%)
Unsettled prepayment for
Supplier 1 Third party 15347156.55 Within 1 year 25.93
premium
Unsettled prepaid service
Supplier 2 Third party 5491648.66 Within 1 year 9.28
charges
Unsettled advance purchase
Supplier 3 Third party 3344997.38 Within 1 year 5.65
payment
Within 1 year Unsettled prepayment for
Supplier 4 Third party 3025232.04 5.11
more than 3 years premium
Unsettled prepayment for
Supplier 5 Third party 2031865.00 Within 1 year 3.43
premium
Total 29240899.63 49.40
- 88 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables
7.1 Presentation of other receivables
Item 31/12/2024 31/12/2023
Dividends receivable 554387723.94 343386866.06
Other receivables 612111619.96 596628127.95
Total 1166499343.90 940014994.01
7.2 Dividends receivable
(1) Presentation of dividends receivable by aging
Whether there is impairment
Name of investee 31/12/2024 31/12/2023 Reason for non-recovery
and its judgment basis
Dividends receivable with an aging
436240220.68157850228.61————
within 1 year
Including: —— —— —— ——
Shanghai International Port (Group)
Co. Ltd. (hereinafter referred to as 326565642.25 - —— No
"Shanghai Port Group")
China Nanshan Development (Group)
Incorporation (hereinafter referred to 74028000.00 74028000.00 —— No
as "Nanshan Group")
Euro-Asia Oceangate S.a.r.l. 23881469.17 - —— No
China Ocean Shipping Agency
10575000.00 11232000.00 —— No
Shenzhen Co. Ltd.Dalian Port Logistics Network Co. Ltd. - 30605256.76 —— ——
Yingkou Gangxin Technology Co. Ltd. - 23881213.75 —— ——
Tin-can Island Container Terminal Ltd. - 18103758.10 —— ——
Others 1190109.26 - —— No
Dividends receivable with an aging of
118702445.93185880368.05————
more than one year
Including: —— —— —— ——
Relevant procedures are
being handled and past
Nanshan Group 74028000.00 129549000.00 No
dividends are being paid in
succession
Zhanjiang Merchants Port City
Investment Co. Ltd. (hereinafter 38809044.77 38809044.77 Lack of funds No
referred to as "Merchants Port City")
Lack of funds and payment
COSCO Logistics (Zhanjiang) Co. Ltd. 5649001.16 13449001.16 No
is made in installments
Tin-can Island Container Terminal Ltd. - 3856922.12 —— ——
Others 216400.00 216400.00 Lack of funds No
Sub-total 554942666.61 343730596.66 —— ——
Less: Provision for bad debts 554942.67 343730.60 —— ——
Total 554387723.94 343386866.06 —— ——
- 89 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.2 Dividends receivable - continued
(2) Changes in provision for credit loss of dividends receivable
Stage 1 Stage 2 Stage 3
Lifetime expected credit
Item 12-month expected Lifetime expected credit Total
loss (not credit-
credit loss loss (credit-impaired)
impaired)
As at 1 January 2024 343730.60 - - 343730.60
Balance at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 211212.07 - - 21121207
Reversal for the year - - - -
As at 31 December 2024 554942.67 - - 554942.67
(3) Details of provision for bad debts
Changes for the year
Category 31/12/2023 Recovery or Charge-off or Other 31/12/2024
Provision
reversal write-off changes
Provision for bad debts
assessed on an individual - - - - - -
basis
Provision for bad debts
343730.6021121207---554942.67
assessed on a portfolio basis
Total 343730.60 21121207 - - - 554942.67
7.3 Other receivables
(1) Aging analysis of other receivables
31/12/202431/12/2023
Aging Proportion Provision for bad Proportion Provision for
Book value Book value
(%) debts (%) bad debts
Within 1 year
270686270.9223.005873.3261380065.6516.833386613.18
(including 1 year)
1-2 years
34852514.762.961639836.84268634561.1617.29189669720.48
(including 2 year)
2-3 years
254724777.7421.64182279617.60189029374.1812.174675136.05
(including 3 year)
More than 3 years 616886752.77 52.40 381113368.46 834322127.22 53.71 759006530.55
Total 1177150316.19 100.00 565038696.23 1553366128.21 100.00 956738000.26
(2) Disclosure of other receivables by nature
Item 31/12/2024 31/12/2023
Operation compensation (Note 1) 512608434.72 857551782.45
Advance payment 227885870.03 264603548.43
Land compensation (Note 2) 197262369.00 89630000.00
Special subsidies collected on behalf 19779450.00 24800000.00
Security deposit 28631566.40 24853374.42
Others 190982626.04 291927422.91
Sub-total 1177150316.19 1553366128.21
Less: Provision for bad debts 565038696.23 956738000.26
Total 612111619.96 596628127.95
- 90 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(2) Disclosure of other receivables by nature - continued
Note 1: It is the operating compensation that the subsidiary of the Company shall collect from the
holding company of its non-controlling shareholders according to the agreement. As at 31
December 2023 the Group has accumulated the compensation that has not been received
equivalent to RMB 857551782.45 and has withdrawn the provision for bad debts in full.For the year ended 31 December 2024 the Group recovers the compensation equivalent
to RMB 316715160.00 and transfer back the provision for bad debts of RMB
316715160.00 accordingly. As at 31 December 2024 the Group has accumulated the
compensation that has not been received which is equivalent to RMB 512608434.72.The provision for bad debts have been fully withdrawn.Note 2: On 9 October 2021 Zhanjiang Port (Group) Co. Ltd. (hereinafter referred to as
"Zhanjiang Port") a subsidiary of the Company signed the Agreement on the Recovery of
State owned Land Use Rights with local government agencies which stipulates that
Zhanjiang Port will return 195.68 mu of land located in Zhanjiang Comprehensive Bonded
Zone east of Shugang Avenue to local government agencies at a price of RMB
89630000.00. The above land has been handed over before 31 December 2021. As at 31
December 2024 the above land compensation of RMB 89630000.00 has not been
recovered.On 4 September 2024 Zhanjiang Port signed the Agreement on the Recovery of State
owned Land Use Rights with local government agencies which stipulates that Zhanjiang
Port will return 146970.20 square meters of land and assets on the ground located in the
north of Xiashan Port District of Zhanjiang to local government agencies at a price of
RMB 107632369.00. The above land and above ground assets have been transferred
before 18 September 2024. As at 31 December 2024 the above land compensation of
RMB 107632369.00 has not been recovered.- 91 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(3) Provision for credit loss of other receivables
31/12/202431/12/2023
Lifetime Lifetime Lifetime Lifetime
Expected credit 12-month 12-month
Credit rating expected credit expected credit expected credit expected credit
loss rate (%) expected credit Total expected credit Total
loss (not credit- loss (credit- loss (not credit- loss (credit-
loss loss
impaired) impaired) impaired) impaired)
A 0.00-0.10 499361668.36 - - 499361668.36 596631116.95 - - 596631116.95
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 677788647.83 677788647.83 - - 956735011.26 956735011.26
Book value 499361668.36 - 677788647.83 1177150316.19 596631116.95 - 956735011.26 1553366128.21
Provision for bad debts 13957.42 - 565024738.81 565038696.23 2989.00 - 956735011.26 956738000.26
Carrying amount 499347710.94 - 112763909.02 612111619.96 596628127.95 - - 596628127.95
Significant other receivables for which provision for bad debts is assessed on an individual basis (credit rating of D)
Name of entity 31/12/2024 Provision for bad debts ECL rate (%) Reason for provision
Entity 14 512608434.72 512608434.72 100.00 Expected to be unrecoverable (Note)
Entity 15 122569018.03 9854263.08 8.04 No specific payment plan
Entity 16 14000000.00 14000000.00 100.00 Expected to be unrecoverable
Total 649177452.75 536462697.80 — — — —
Note: Refer to Note (VIII) 7.3(2).- 92 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(4) Provision for bad debts
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
As at 1 January 2024 2989.00 - 956735011.26 956738000.26
Balance of other receivables
at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 10914.76 - 16417637.56 16428552.32
Reversal for the year - - -379923568.34 -379923568.34
Effect of changes in the scope of
consolidation - - - -
Charge-off for the year - - - -
Write-off for the year - - - -
Other changes 53.66 - -28204341.67 -28204288.01
As at 31 December 2024 13957.42 - 565024738.81 565038696.23
(5) The provision for bad debts recovered or reversed for the period that is significant in
amount is listed as below:
Accumulated
Book value of
Name of Reason and method of recovery or Basis for determining the original provision for bad Amount recovered
other
entity reversal provision for bad debts debts before or reversed
receivables
recovery or reversal
According to the reconciliation
Determined according to the
Entity 14 512608434.72 agreement the debtor repaid part of the 857551782.45 316715160.00
financial status of previous years
amount
Debtor repays debt after negotiation Determined according to the
Entity 17 1634741.75 64841250.09 63206508.34
between both parties financial status of previous years
Total 514243176.47 —— —— 922393032.54 379921668.34
- 93 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(6) The Group has no other receivables actually written off this year.
(7) The top five balances of other receivables at the end of the year classified by debtor
Provision for
Proportion to credit
Name of Relationship
Book value Aging total other impairment at Nature
entity with the Group
receivables (%) the end of the
year
2-3 years more Operation
Entity 14 The third party 512608434.72 43.55 512608434.72
than 3 years compensation
Within 1 year
Entity 18 The third party 197262369.00 16.76 - Land compensation
more than 3 years
2-3 years more
Entity 15 The third party 122569018.03 10.41 9854263.08 Advanced payments
than 3 years
Associated 1-2 years more
Entity 19 37374974.40 3.18 - loan
enterprise than 3 years
Entity 20 The third party 33954749.14 Within 1 year 2.88 - Advanced payments
Total — — 903769545.29 —— 76.78 522462697.80 — —
8. Inventories
(1) Inventories by category
31/12/202431/12/2023
Provision for Provision for
Item Carrying Carrying
Book value impairment of Book value impairment of
amount amount
inventories inventories
Raw materials 261972849.28 1153436.72 260819412.56 217097512.98 1234628.38 215862884.60
Finished goods 4683965.30 - 4683965.30 2520205.91 - 2520205.91
Others 4454642.48 - 4454642.48 515102.36 - 515102.36
Total 271111457.06 1153436.72 269958020.34 220132821.25 1234628.38 218898192.87
(2) Provision for impairment of inventories
Increase Decrease Effect of
translation of
financial
Category 1/1/2024 Reversal or 31/12/2024
Provision Others Others statements
charge-off
denominated in
foreign currencies
Raw materials 1234628.38 - - 92227.23 - 11035.57 1153436.72
- 94 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Inventories - continued
(2) Provision for impairment 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. The reason for the write off of provision
for impairment of inventories in this year is requisition and consumption.
(3) As at 31 December 2024 the Group has no capitalized borrowing cost in the balance of
inventories.
9. Non-current assets due within one year
(1) Presentation of non-current assets due within one year
Item 31/12/2024 31/12/2023
Long-term receivables due within one year 35033025.11 17468849.83
Less: Provision for bad debts 35033.03 17468.85
Carrying amount 34997992.08 17451380.98
10. Other current assets
Item 31/12/2024 31/12/2023
Input VAT to be deducted and certified 110187182.64 115121766.13
Prepaid taxes 140440401.53 71771659.09
Others 1070228.60 2780075.65
Sub-total 251697812.77 189673500.87
Less: provision for impairment - -
Total 251697812.77 189673500.87
11. Long-term receivables
(1) Details of long-term receivables
31/12/2024 31/12/2023 Range of discount
Item Provision for Carrying Provision for Carrying rate at the end of
Book value Book value
bad debts amount bad debts amount year
Advances to shareholders (Note 1) 1169988750.65 1169988.75 1168818761.90 1167470819.35 1167470.82 1166303348.53 6.15%-8.08%
Guarantees for finance leases 1453195.68 1453.20 1451742.48 10695876.01 10695.88 10685180.13 0-4.72%
Land compensation receivable (Note 2) 2641932000.00 - 2641932000.00 2691932000.00 - 2691932000.00
Others 169062.40 - 169062.40 4996969.31 - 4996969.31
Total 3813543008.73 1171441.95 3812371566.78 3875095664.67 1178166.70 3873917497.97
Less: Long-term receivables
35033025.1135033.0334997992.0817468849.8317468.8517451380.98
due within 1 year
Long-term receivables due after 1 year 3778509983.62 1136408.92 3777373574.70 3857626814.84 1160697.85 3856466116.99
- 95 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
Note 1: It mainly represents the aggregate principal and interest receivable from Port of Newcastle
and Terminal Link SAS equivalent to RMB 920674796.27 and RMB 215013954.38
respectively.On 14 June 2018 China Merchants Port Holdings Company (hereinafter referred to as
"CM Port") a subsidiary of the Company provided a long-term loan to Port of Newcastle
which signed in 2023 and has been extended to 31 December 2034. The loan carries
interest at a rate of weighted average interest rate on debt as determined by local authority
of Port of Newcastle plus 0.5%.On 31 May 2023 CM Port a subsidiary of the Company provided a long-term loan to
Terminal Link SAS for making additional capital injection to Saigang project and charged
interest to Terminal Link SAS at an interest rate of 6.15%.Note 2: On 5 November 2019 Shantou CM Port Group Co. Ltd. (hereinafter referred to as
"Shantou Port") a subsidiary of the Company entered into the Contract for the Acquisition
of State-Owned Land Use Rights in Shantou with Shantou Land Reserve Center. Pursuant
to the contract the land and attached buildings of approximately 370.96 mu located in
Zhuchi Deepwater Port on the south of Zhongshan East Road of Shantou should be
returned to Shantou Land Reserve Center by Shantou Port which is amounting to
RMB1558032000.00. Among them 183.63 mu of land and attached buildings have been
transferred in 2019 and the remaining 187.33 mu of land and attached buildings have
been transferred in 2020. As at 31 December 2024 the land compensation of
RMB1158032000.00 has not yet been recovered.On 21 August 2020 Shantou Port and Shantou Haojiang District Land Reserve Center
signed the Shantou City State owned Land Use Right Purchase Contract which stipulates
that Shantou Port will hand back 152.34 mu of land and attached buildings located in
Wutian Farm Yushi Haojiang District Shantou City to Shantou Haojiang District Land
Reserve Center at a price of RMB250000000.00. The above land and attached buildings
have been handed over before 31 December 2020. As at 31 December 2024 the land
compensation of 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 2024 the land compensation of RMB
1283900000.00 has not yet been recovered.
- 96 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(2) Long-term receivables disclosed by method of provision for bad debts
31 December 2024 31 December 2023
Book value Provision for bad debts Book value Provision for bad debts
Category Carrying
Proportion Proportion Proportion Proportion Carrying amount
Amount Amount amount Amount Amount
(%)(%)(%)(%)
Provision for bad debts
3813543008.73100.001171441.950.033812371566.783875095664.67100.001178166.700.033873917497.97
assessed on a portfolio basis
Total 3813543008.73 100.00 1171441.95 3812371566.78 3875095664.67 100.00 1178166.70 3873917497.97
Provision for bad debts assessed on a portfolio basis
31 December 2024
Credit rating
Accounts receivable Provision for bad debts Proportion (%)
A 3813543008.73 1171441.95 0.03
Total 3813543008.73 1171441.95
(3) Provision for bad debts of long-term receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
As at 1 January 2024 1178166.70 - - 1178166.70
Book value of long-term
----
receivables as at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 45771.75 - - 45771.75
Reversal for the year -52496.50 - - -52496.50
Charge-off for the year - - - -
Write-off for the year - - - -
Other changes - - - -
As at 31 December 2024 1171441.95 - - 1171441.95
(4) Details of provision for bad debts
Changes for the year
Effect of
Category 31/12/2023 Recovery or Charge-off or changes in the 31/12/2024
Provision
reversal write-off scope of
consolidation
Advances to shareholders 1167470.82 45014.43 -42496.50 - - 1169988.75
Guarantees for finance
10695.88757.32-10000.00--1453.20
leases
Land compensation
------
receivable
Others - - - - - -
Total 1178166.70 45771.75 -52496.50 - - 1171441.95
(5) There are no long-term receivables written off during the year.
- 97 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments
(1) Classification of long-term equity investments
Effect of
Effect of changes Other increase translation of
financial
Item 31/12/2023 in the scope of Increase Decrease (decrease expressed 31/12/2024
statements
consolidation with "-") denominated in
foreign currencies
Investment in joint ventures 8957993335.22 - 160855675.82 - 322006693.75 -124869176.85 9315986527.94
Investment in associates 88070458516.81 - - -120000000.00 2919591008.79 167416104.04 91037465629.64
Sub-total 97028451852.03 - 160855675.82 -120000000.00 3241597702.54 42546927.19 100353452157.58
Less: provision for impairment of
362334075.76---8113482.64-35025295.78335422262.62
long-term equity investments
Total 96666117776.27 - 160855675.82 -120000000.00 3233484219.90 77572222.97 100018029894.96
(2) Details of long-term equity investments
Changes for the year
Effect of translation of
Investment Other Cash dividends Provision for impairment
Investees 31/12/2023 Other equity Provision for financial statements 31/12/2024
Increase Decrease income under comprehensive or profits at the end of the year
movements impairment denominated in foreign
equity method income declared
currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. 2045841414.96 - - 129656958.63 183258241.46 - -115493866.93 - 31870075.84 2275132823.96 -
Port of Newcastle 2075023699.91 - - 25792465.60 -8849767.13 - - - -152714223.82 1939252174.56 -
Others 4837128220.35 160855675.82 - 211997573.56 -12678065.76 56831.00 -91733676.68 -8113482.64 -4025028.87 5093488046.78 8113482.64
Sub-total 8957993335.22 160855675.82 - 367446997.79 161730408.57 56831.00 -207227543.61 -8113482.64 -124869176.85 9307873045.30 8113482.64
II. Associates
Shanghai Port Group 37212885138.77 - - 4181987765.08 78387100.55 19065221.75 -1449951451.59 - - 40042373774.56 -
Nanshan Group 6559245040.52 - - -378299555.51 -26388437.39 -47008815.51 -74028000.00 - - 6033520232.11 -
Terminal Link SAS 6453040914.20 - - 346946611.72 -327831030.14 - -395260400.37 - 91816798.27 6168712893.68 -
Liaoning Port Co. Ltd. (hereinafter referred to as "Liaoning Port") 4124157791.26 - - 129530471.96 3921721.81 9391216.02 -51851456.34 - 35076570.08 4250226314.79 324913116.66
Shenzhen China Merchants Qianhai
7445725318.18--13195540.90---49000000.00--7409920859.08-
Industrial Development Co. Ltd.Ningbo Zhoushan Port Company Limited
18631154114.31--1133840746.9725589778.6739479895.57-408578523.82--19421486011.70-
(hereinafter referred to as "Ningbo Zhoushan")
Others 7281916123.81 - -120000000.00 646357034.34 -25409646.22 -503725.07 -473991054.59 - 75548031.47 7383916763.74 2395663.32
Sub-total 87708124441.05 - -120000000.00 6073558615.46 -271730512.72 20423792.76 -2902660886.71 - 202441399.82 90710156849.66 327308779.98
Total 96666117776.27 160855675.82 -120000000.00 6441005613.25 -110000104.15 20480623.76 -3109888430.32 -8113482.64 77572222.97 100018029894.96 335422262.62
- 98 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments - continued
(2) Changes in provision for impairment of long-term equity investments are as follows
Decrease Effect of
translation of
Effect of changes financial
Item 31/12/2023 in the scope of Increase Reasons for statements 31/12/2024
Decrease
consolidation reduction denominated in
foreign
currencies
Liaoning Port 359989686.74 - - - - -35076570.08 324913116.66
Silk Road Yishang Information Technology - -
8113482.64---8113482.64
Co. Ltd.HOA THUONG CORPORATION 2344389.02 - - - - 51274.30 2395663.32
Total 362334075.76 - 8113482.64 - - -35025295.78 335422262.62
- 99 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Investments in other equity instruments
(1) Details of investments in other equity instruments4
Dividend income Other comprehensive Reasons for designation at fair Amount transferred from Reasons for transferring
Other comprehensive
Item 31/12/2024 31/12/2023 recognized for income at the end of the value through other other comprehensive income other comprehensive income
income during the year
the year year comprehensive income to retained earnings to retained earnings
China Ocean Shipping It is a non-trading equity
129726519.67147689164.2510575000.00-17962644.58116216519.67-——
Agency Shenzhen Co. Ltd. instrument investment
It is a non-trading equity
Others 9725367.38 9772483.91 240000.00 -47116.53 697867.38 - ——
instrument investment
Total 139451887.05 157461648.16 10815000.00 -18009761.11 116914387.05 —— -
(2) There are no other equity instruments derecognized for the year.
- 100 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Other non-current financial assets
Item 31/12/2024 31/12/2023
Financial assets at FVTPL 28524600.31 877576442.83
Including: Investments in equity instruments 28524600.31 877576442.83
Including: Qingdao Port International Co. Ltd. - 850222729.23
Others 28524600.31 27353713.60
Total 28524600.31 877576442.83
15. Investment properties
(1) Investment properties measured at cost
Buildings and
Item Land use rights Total
structures
I. Cost
1. As at 1 January 2024 136657995.75 6191446084.83 6328104080.58
2. Effect of changes in the scope of
---
consolidation
3. Increase for the year - 1137419.00 1137419.00
(1) Other increase - 1137419.00 1137419.00
4. Decrease for the year - 1873167331.64 1873167331.64
(1) Transfer from investment
-1863087962.641863087962.64
properties to fixed assets
(2) Other decreases - 10079369.00 10079369.00
5. As at 31 December 2024 136657995.75 4319416172.19 4456074167.94
II. Accumulated depreciation
and amortization
1. As at 1 January 2024 47569315.68 1322159796.11 1369729111.79
2. Effect of changes in the scope of
---
consolidation
3. Increase for the year 2566349.89 178953157.85 181519507.74
(1) Provision for the year 2566349.89 178953157.85 181519507.74
4. Decrease for the year - 383864522.19 383864522.19
(1) Transfer from investment
-381104046.36381104046.36
properties to fixed assets
(2) Other decreases - 2760475.83 2760475.83
5. As at 31 December 2024 50135665.57 1117248431.77 1167384097.34
III. Impairment provision
1. As at 1 January 2024 - - -
2. Increase for the year - - -
3. Decrease for the year - - -
4. As at 31 December 2024 - - -
IV. Carrying amount
1. As at 31 December 2024 86522330.18 3202167740.42 3288690070.60
2. As at 1 January 2024 89088680.07 4869286288.72 4958374968.79
- 101 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Investment properties - continued
(2) Investment properties without ownership certificates
Reasons for not obtaining certificate of
Item Book value Expected time of completion
title
Buildings structures Some buildings and structures have not yet
20459485.82 The certificate of title is underway
and land use rights obtained certificates of land use rights
16. Fixed assets
16.1 Summary of fixed assets
Item 31/12/2024 31/12/2023
Fixed assets 30688591344.25 28986501937.59
Disposal of fixed assets 626447.20 36388.76
Total 30689217791.45 28986538326.35
16.2 Fixed assets
(1) Details of fixed assets
Machinery and
Port and terminal Buildings and equipment furniture Motor vehicles and
Item Total
facilities structures fixture and other cargo ships
equipment
I. Cost
1. As at 1 January 2024 31137311072.50 1825694719.33 16741310306.89 2283384722.04 51987700820.76
2. Effect of changes in the scope of
-8639804.61337301964.4211601319.63357543088.66
consolidation
3. Increase for the year 1819513356.73 1863192506.98 651257110.88 31339741.71 4365302716.30
(1) Purchase 69273432.67 - 162300871.17 22615228.17 254189532.01
(2) Transfer from development costs 16350441.53 - 9176677.03 - 25527118.56
(3) Transfer from construction in progress 876465768.13 104544.34 401214617.20 8724513.54 1286509443.21
(4) Transfer from right-of-use assets 851877385.80 - 78484945.48 - 930362331.28
(5) Transfer in of investment properties - 1863087962.64 - - 1863087962.64
(6) Others 5546328.60 - 80000.00 - 5626328.60
4. Decrease for the year 84446135.59 5002422.15 152929989.08 49408822.15 291787368.97
(1) Disposal or retirement 84446135.59 5002422.15 152929989.08 49408822.15 291787368.97
5. Settlement variance adjustments -855245.85 11201.40 -543798.26 - -1387842.71
6. Reclassification -4640077.36 - 4738134.70 -98057.34 -
7. Effect of translation of financial statements
-401109413.871599222.35-195755119.8610393920.98-584871390.40
denominated in foreign currencies
8. As at 31 December 2024 32465773556.56 3694135032.52 17385378609.69 2287212824.87 55832500023.64
II. Accumulated depreciation
1. As at 1 January 2024 10597481043.45 625019594.44 10412566166.66 1152627595.54 22787694400.09
2. Effect of changes in the scope of
-4951847.6868925007.366835917.0780712772.11
consolidation
3. Increase for the year 1085270466.66 449608915.42 871505149.71 109479231.38 2515863763.17
(1) Provision 941913500.61 68504869.06 833441200.38 109479231.38 1953338801.43
(2) Transfer from right-of-use assets 140546194.41 - 37998573.33 - 178544767.74
(3) Transfer in of investment properties - 381104046.36 - - 381104046.36
(4) Others 2810771.64 - 65376.00 - 2876147.64
4. Decrease for the year 56020787.44 3411645.42 137603093.42 46975191.60 244010717.88
(1) Disposal or retirement 56020787.44 3411645.42 137603093.42 46975191.60 244010717.88
5. Reclassification 3274013.70 - -3178033.81 -95979.89 -
6. Effect of translation of financial statements
-99996965.861871516.96-115014678.023498205.76-209641921.16
denominated in foreign currencies
7. As at 31 December 2024 11530007770.51 1078040229.08 11097200518.48 1225369778.26 24930618296.33
III. Impairment provision
1. As at 1 January 2024 196464146.22 9414527.47 7625809.39 - 213504483.08
2. Increase for the year - - - - -
3. Disposal or retirement for the year - - - - -
4. Effect of translation of financial statements
---214100.02--214100.02
denominated in foreign currencies
5. As at 31 December 2024 196464146.22 9414527.47 7411709.37 - 213290383.06
IV. Carrying amount
1. As at 31 December 2024 20739301639.83 2606680275.97 6280766381.84 1061843046.61 30688591344.25
2. As at 1 January 2024 20343365882.83 1191260597.42 6321118330.84 1130757126.50 28986501937.59
Including: Carrying amount of pledged assets at the
304310074.262003228.60160343193.99875324.93467531821.78
end of the year
- 102 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.2 Fixed assets - continued
(2) The Group has no fixed assets that are temporarily idle as at 31 December 2024.
(3) Fixed assets leased out under operating leases
Carrying amount as Carrying amount as
Item
at 31/12/2024 at 31/12/2023
Buildings and structures 185465560.82 190979949.85
Port and terminal facilities 41979439.95 35709105.32
Machinery and equipment furniture fixture and other equipment 10203232.09 5012091.76
Total 237648232.86 231701146.93
(4) 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
I. Cost of fixed assets fully depreciated but still in use
5396775614.66
at the end of the year
II. Cost of fixed assets temporarily idle at the end of the year -
III. Fixed assets disposed and retired in the year:
Including: Cost of fixed assets disposed and retired in the year 291787368.97
Net book value of fixed assets disposed and retired in the year 47776651.09
Loss on disposal or retirement of fixed assets in the year 1482080.79
(5) Fixed assets without ownership certificates
Carrying amount as Carrying amount as
Item Remark
at 31/12/2024 at 31/12/2023
This is mainly due to the fact that certain buildings
Buildings structures
and structures have not yet obtained the land use
port and terminal 1357929730.13 1539024375.12
rights of the corresponding land and the approval
facilities
procedures have not yet been completed.
(6) The details of the Group's fixed assets with restricted ownership as at 31 December 2024
are set out in Note (VIII) 64.- 103 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.3 Disposal of fixed assets
Item 31/12/2024 31/12/2023
Machinery and equipment furniture fixture
626447.2036388.76
and other equipment
Total 626447.20 36388.76
17. Construction in progress
(1) Presentation of construction in progress
Item 31/12/2024 31/12/2023
Construction in progress 3296562213.14 2907014186.24
Materials for construction of fixed assets 14547783.45 2803095.22
Total 3311109996.59 2909817281.46
(2) Details of construction in progress
31/12/202431/12/2023
Item Provision for Carrying Provision for Carrying
Book value Book value
impairment amount impairment amount
Port and terminal
1950072409.34-1950072409.342380800758.33-2380800758.33
facilities
Infrastructure 608560125.43 - 608560125.43 252638193.22 - 252638193.22
Berths and yards 475884349.47 - 475884349.47 178174354.90 - 178174354.90
Cargo ships under
21073474.73-21073474.731726548.68-1726548.68
construction
Others 241750332.70 778478.53 240971854.17 93674331.11 - 93674331.11
Total 3297340691.67 778478.53 3296562213.14 2907014186.24 - 2907014186.24
- 104 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(3) Changes of significant construction in progress
Effect of
translation of Proportion of Interest
Amount of Including:
Other financial accumulated capitalization
Increase for Transfer to Construction accumulated Capitalized Capital
Item Budget amount 31/12/2023 decreases for statements 31/12/2024 construction rate for the
the year fixed assets progress (%) capitalized interest for source
the year denominated investment in current year
interest the year
in foreign budget (%) (%)
currencies
Reconstruction project of HIPG
2908022151.89 831225294.06 49353.60 - - 12405408.74 843680056.40 49.97 49.97 - - - Own funds
container oil terminal and tank area
Zhanjiang Port Baoman Port Area Container Own funds
2342775800.00228565139.35369216050.96---597781190.3125.5225.524153870.603142500.002.70
Terminal Phase I Expansion Project and loans
Zhanjiang Port Donghai Island Port Area Own funds
905348400.00448945219.8431056095.20---480001315.0453.0253.0244364372.49--
Grocery Wharf Project and loans
Subsequent construction in progress of
1148229729.08 64518356.73 360009390.82 80457743.98 - 3581852.63 347651856.20 31.65 31.65 - - - Own funds
HIPG wharf
Phase I of the second phase of the wharf
Own funds
project in the local operation area of 746878600.00 173229108.75 158479740.24 - - - 331708848.99 77.60 77.60 21475814.58 9469073.60 3.41
and loans
Goshan Port Area is controlled in sequence
Phase II of the second phase project of
the wharf in the local operation area of
512745400.00 2335611.25 134392773.36 - - - 136728384.61 26.67 26.67 - - - Own funds
the port area of Goshan Port is controlled in
sequence
Own funds
Dachanwan phase II project 6201904300.00 49989488.44 44156751.37 35618.58 - - 94110621.23 1.52 1.52 - - -
and loans
Phase II warehouse of Djibouti Free Trade
82825980.92 - 72431197.06 - - 678577.17 73109774.23 87.45 87.45 - - - Own funds
Zone Bonded Logistics Park
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82400000.00 62250560.60 1674220.80 - - - 63924781.40 78.00 78.00 - - - Own funds
Facilities and Liquid Bulk Berth
Phase III Expansion Project of Bulk Grain
Own funds
Warehouse at 2 # and 3 # Berths in 1070060466.80 - 55590989.31 - - - 55590989.31 5.20 5.20 495141.01 495141.01 2.40
and loans
Xinshanan Operation Area of Machong Port
TCP tyre container crane project 167813680.92 154353640.05 16042118.68 155362726.60 - -14935279.82 97752.31 81.38 81.38 - - - Own funds
Total 16169004509.61 2015412419.07 1243098681.40 235856089.16 - 1730558.72 3024385570.03 —— —— 70489198.68 13106714.61 —— ——
- 105 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(4) Materials for construction of fixed assets
31/12/202431/12/2023
Item Provision for Carrying Provision for Carrying
Book value Book value
impairment amount impairment amount
Materials for construction
14547783.45-14547783.452803095.22-2803095.22
of fixed assets
(5) Impairment testing of construction in progress
The recoverable amount is determined at the present value of expected future cash flows.Key Basis to
Key
Carrying Recoverable Amount of Projection parameters for determine the
Item parameters for
amount amount impairment period projection key parameters
steady period
period for steady period
Refer to the expected
Pre-tax discount Perpetual
HIPG Asset Group 9252208236.39 59264649095.70 - 5 years growth rate of the
rate 7.55% growth rate 7%
industry
Total 9252208236.39 59264649095.70 -
18. Right-of-use assets
（1） Details of right-of-use assets
Machinery and
Motor
Port and equipment
Buildings and vehicles cargo
Item terminal furniture Land use rights Total
structures ships and
facilities fixture and
others
other equipment
I. Cost
1. As at 1 January 2024 7562353952.80 209373502.30 90415354.96 3196799850.46 12324371.27 11071267031.79
2. Effect of changes in the scope of
---438590768.78-438590768.78
consolidation
3. Increase for the year 17134584.91 9058200.59 - 24820389.02 - 51013174.52
(1) Increase 17134584.91 9058200.59 - 24820389.02 - 51013174.52
4. Decrease for the year 1178966833.33 66417257.76 83675896.45 - 6146986.54 1335206974.08
(1) Termination of lease 327089447.53 66417257.76 5190950.97 - 6146986.54 404844642.80
(2) Transfer to fixed assets 851877385.80 - 78484945.48 - - 930362331.28
5. Effect of translation of financial
statements denominated in foreign 94334911.72 2053416.77 -1330029.37 58586942.87 - 153645241.99
currencies
6. As at 31 December 2024 6494856616.10 154067861.90 5409429.14 3718797951.13 6177384.73 10379309243.00
II. Accumulated depreciation
1. As at 1 January 2024 1133512711.03 69917866.45 41288905.85 378727399.69 6151837.55 1629598720.57
2. Effect of changes in the scope of
---4385907.55-4385907.55
consolidation
3. Increase for the year 250849727.02 22059985.39 7269237.42 59689890.66 3755059.14 343623899.63
(1) Provision 250849727.02 22059985.39 7269237.42 59689890.66 3755059.14 343623899.63
4. Decrease for the year 467635641.93 55479245.30 43057128.13 - 6146986.54 572319001.90
(1) Termination of lease 327089447.52 55479245.30 5058554.80 - 6146986.54 393774234.16
(2) Transfer to fixed assets 140546194.41 - 37998573.33 - - 178544767.74
5. Effect of translation of financial
statements denominated in foreign 11433680.67 545267.40 -1336714.46 6025420.00 - 16667653.61
currencies
6. As at 31 December 2024 928160476.79 37043873.94 4164300.68 448828617.90 3759910.15 1421957179.46
III. Impairment provision
1. As at 1 January 2024 - - - - - -
2. Increase for the year - - - - - -
3. Decrease for the year - - - - - -
4. As at 31 December 2024 - - - - - -
IV. Carrying amount
1. As at 31 December 2024 5566696139.31 117023987.96 1245128.46 3269969333.23 2417474.58 8957352063.54
2. As at 1 January 2024 6428841241.77 139455635.85 49126449.11 2818072450.77 6172533.72 9441668311.22
- 106 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets
(1) Details of intangible assets
Terminal management
Item Land use rights Data resources Others Total
rights
I. Cost
1. As at 1 January 2024 13931545206.82 9719144201.53 - 1668648110.38 25319337518.73
2. Effect of changes in the scope of
3475149.95482033493.04--485508642.99
consolidation
3. Increase for the year 208609912.90 103107263.27 6339622.62 55518365.92 373575164.71
(1) Purchase 208609912.90 103107263.27 - 49014833.85 360732010.02
(2) Transfer from development costs - - 6339622.62 4082980.32 10422602.94
(3) Other increase - - - 2420551.75 2420551.75
4. Decrease for the year 85264264.69 - - 11500767.04 96765031.73
(1) Disposal 85264264.69 - - 11500767.04 96765031.73
5. Effect of translation of financial statements
5055363.79-984689931.49--131175661.86-1110810229.56
denominated in foreign currencies
6. As at 31 December 2024 14063421368.77 9319595026.35 6339622.62 1581490047.40 24970846065.14
II. Accumulated amortization
1. As at 1 January 2024 4298634686.00 2294738077.51 - 595892300.43 7189265063.94
2. Effect of changes in the scope of
3203850.9832544723.40--35748574.38
consolidation
3. Increase for the year 325634621.59 283628119.67 88502.35 79005661.70 688356905.31
(1) Provision 325634621.59 283628119.67 88502.35 79005661.70 688356905.31
4. Decrease for the year 23972681.75 - - 9812220.89 3 3 784902.64
(1) Disposal 23972681.75 - - 9812220.89 33784902.64
5. Effect of translation of financial statements
2459217.19-254480639.52--48810846.43-300832268.76
denominated in foreign currencies
6. As at 31 December 2024 4605959694.01 2356430281.06 88502.35 616274894.81 7578753372.23
III. Impairment provision
1. As at 1 January 2024 44199381.24 - - 12810888.83 57010270.07
2. Increase for the year - - - - -
3. Decrease for the year - - - - -
4. As at 31 December 2024 44199381.24 - - 12810888.83 57010270.07
IV. Carrying amount
1. As at 31 December 2024 9413262293.52 6963164745.29 6251120.27 952404263.76 17335082422.84
2. As at 1 January 2024 9588711139.58 7424406124.02 - 1059944921.12 18073062184.72
(2) Land use rights without ownership certificates as at 31 December 2024:
Carrying amount Carrying amount
Item
as at 31/12/2024 as at 31/12/2023
Land use rights (Note) 1889916568.77 2374139495.63
- 107 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets - continued
(2) Land use rights without ownership certificates as at 31 December 2024: - continued
Note: As at 31 December 2024 the land use rights without ownership certificates mainly represent
the land use rights for berth and storage yard within Chiwan Port area obtained by the Group
from Nanshan Group with an area of 690161.97 m2 and Dachanwan Port area Phase II
land use rights obtained by Ansujie Port Warehousing Services (Shenzhen) Co. Ltd.(hereinafter referred to as "ASJ") the costs of which are RMB 1179259029.47 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.
20. Goodwill
(1) Details of goodwill
Increase this year Decrease Effect of translation of
financial statements
Investee Sources 31/12/2023 31/12/2024
Business denominated in foreign
combination Other increase currencies
(Note)
TCP Acquisition of equity 2986472072.14 - - - -616757814.90 2369714257.24
Mega Shekou Container
Terminals Limited (hereinafter referred Acquisition of equity 1815509322.42 - - - - 1815509322.42
to as "Mega SCT")
CM Port Acquisition of equity 993992000.00 - - - - 993992000.00
Shantou Port Acquisition of equity 552317736.65 - - - - 552317736.65
Zhanjiang Port Acquisition of equity 418345307.68 - - - - 418345307.68
Shenzhen Mawan Project Acquisition of equity 408773001.00 - - - - 408773001.00
Others Acquisition of equity 288255850.88 55719132.86 - - 1347364.94 345322348.68
Sub-total — — 7463665290.77 55719132.86 - - -615410449.96 6903973973.67
Provision for impairment of goodwill — — 970663044.33 - - - - 970663044.33
Total — — 6493002246.44 55719132.86 - - -615410449.96 5933310929.34
Note: See Note X 1 (2) for details
- 108 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(2) Provision for impairment of goodwill
Effect of
translation of
Effect of changes
financial
Investee 31/12/2023 in the scope of Provision Decrease 31/12/2024
statements
consolidation
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
Composition of asset groups or portfolio of asset Is it consistent with that of the
Name
groups to which it is allocated and its basis prior year
TCP Yes
Mega SCT The Group identifies asset groups or portfolio of asset Yes
CM Port groups based on their ability to generate cash inflows Yes
Shantou Port independently the manner in which they manage their Yes
Zhanjiang Port production and operating activities and the unified Yes
Shenzhen Mawan Project decision-making on use or disposal of assets. Yes
Others Yes
When testing the goodwill for impairment the Group compares the carrying amount of related asset
groups and portfolio of asset groups (including goodwill) with the recoverable amount. If the
recoverable amount is less than the carrying amount the difference is included in profit or loss for
the period. The Group determines the recoverable amount of the asset groups and portfolio of asset
groups that generate goodwill at fair value less cost of disposal or at present value of expected future
cash flows. The fair value is determined using market approach. The present value of cash flows is
estimated based on the forecast of cash flows for the projection period between 5 years to 25 years
and steady period. The estimated future cash flows for the projection period are based on the
business plan established by the management; the expected future cash flows for the steady period
are determined in conjunction with the level of the final year of the projection period combined
with the Group's business plans industry trends and inflation rates. The growth rate adopted will
not exceed the long-term average growth rate of the country where the asset groups and portfolio
of asset groups are located. The key assumptions used by the Group in estimating the present value
of future cash flows include growth rate and discount rate etc. The pre-tax discount rate and the
growth rate adopted are 9.55%-23.55% and 2.00% 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.- 109 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(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
Key parameters for projection Basis to determine the key parameters Key parameters for steady Basis to determine the key parameters for steady
Item Projection period
period for projection period period period
1. Pre-tax discount rate: 10.07% 1. The discount rate is a pre-tax discount 1. Pre-tax discount rate: 10.07%
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: 1.57% underlying asset group or combination for steady period: 2.00%
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: 37.27% 2. Average revenue growth rate for steady period: 37.34%
China's forward inflation rate published by the
projection period and average profit 1. Pre-tax discount rate: Not
1. Pre-tax discount rate: 23.55% World Bank
margin for projection period: Taking applicable
2. Average revenue growth rate for 3. Profit margin for steady period: Taking into
into account comprehensive factors such 2. Average revenue growth rate
TCP 24 years (Note) projection period: 5.00% account comprehensive factors such as each
as each company's business operations for steady period: Not applicable
3. Average profit margin for company's business operations performance key
performance key financial indicators 3. Average profit margin for
projection period: 53.54% financial indicators and market environment
and market environment steady period: Not applicable
Note: The franchise right of TCP a subsidiary of the Group to Paranagua Port will expire in October 2048. TCP predicts the future cash flow based
on the remaining years of the franchise right.- 110 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Long-term deferred expenses
Presentation of long-term deferred expenses:
Effect of
Reason for
changes in Increase for Amortization Other
Item 31/12/2023 31/12/2024 other
the scope of the year in the year decreases
decreases
consolidation
Tonggu channel widening project Settlement
440997664.99-52318.3014595534.6695991.44426358457.19
(Note 1) Variance
West public channel widening Settlement
237979944.19-43673.146603626.161742829.21229677161.96
project at West port area (Note 2) Variance
Settlement
Dredging project 79289435.04 - 11113590.34 24529084.50 90886.94 65783053.94
Variance
Relocation project of Nanhai Rescue
36446743.10--1107368.40-35339374.70——
Bureau
Expenditures for the improvement of
22094914.45-1038592.732716709.30-20416797.88——
leased fixed assets
Settlement
Others 176984803.52 - 36750598.83 50881199.77 24568.31 162829634.27
Variance
Total 993793505.29 - 48998773.34 100433522.79 1954275.90 940404479.94 ——
Note 1: This represents the Group's actual expenses on Shenzhen Western Port Area Tonggu
Channel 210-270M Widening Project. According to relevant resolutions of Shenzhen
Municipal Government the enterprise and government shall bear 60% and 40% of the
expenses incurred for the 210-240M widening project and 50% and 50% of the expenses
incurred for the 240-270M widening project respectively. The Company's subsidiary has
included the expenses on deepening the channel in the item of " long-term deferred
expenses " and 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 deferred 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.- 111 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax
(1) Deferred tax assets before offsetting
31/12/202431/12/2023
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Lease liabilities 666428741.59 163857577.86 812240581.51 218145932.73
Unrealized profit 742725529.54 181536190.45 749254178.80 183009204.87
Terminal operating right 725211723.54 217563517.06 714547999.18 214364399.78
Depreciation of fixed assets 180532470.26 38716737.33 162352087.79 40588021.95
Provision for bad debts 84382905.10 18830890.39 151277238.51 32071347.97
Accrued and unpaid wages 104332100.77 21864895.76 126623677.19 27883418.55
Estimated liabilities 72335644.41 24250379.90 85590059.41 29100620.20
Deductible losses 35370822.19 5384926.28 43785085.09 10946271.43
Deferred income 36119190.53 8571871.40 39203663.56 9101072.49
Amortization of computer software 6236548.44 1226964.34 7345031.20 1836257.80
Provision for impairment of assets 3477996.67 690206.29 6698523.93 1555485.91
Organization costs - - 1028867.64 257216.91
Others 98150808.94 22429487.85 70987022.41 18570226.51
Total 2755304481.98 704923644.91 2970934016.22 787429477.10
(2) Deferred tax liabilities before offsetting
31/12/202431/12/2023
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Withholding dividend income tax 45628599622.34 3127746150.78 41551214196.81 2840377397.22
Right-of-use assets 972527705.73 257345925.13 1017854192.39 282003933.26
Terminal operating right 273655040.04 82096512.01 307617857.01 92285357.10
Fair value adjustment of assets acquired
4861662497.661254384068.524880293882.181292552086.64
from business combination
Depreciation of fixed assets 934419445.82 257210035.67 975166842.96 272103476.86
Changes in fair value of other non-current
--408104042.7699604068.18
financial assets
Changes in fair value of investments in
116216519.6429054129.91134179164.2433544791.03
other equity instruments
Valuation of financial assets held for
3019863.08754965.772161643.84540410.96
trading
Others 1026333384.24 126835982.94 1045132765.59 118992583.19
Total 53816434078.55 5135427770.73 50321724587.78 5032004104.44
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Offset amount of Balance of deferred Offset amount of Balance of deferred
deferred tax assets tax assets or deferred tax assets tax assets or
Item and liabilities at the liabilities after and liabilities at the liabilities after
end of the current offsetting at the end end of the prior offsetting at the end
year of the current year year of the prior year
Deferred tax assets -339442437.14 365481207.77 -372366000.07 415063477.03
Deferred tax liabilities -339442437.14 4795985333.59 -372366000.07 4659638104.37
- 112 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax - continued
(4) Deductible temporary differences and deductible losses for which deferred tax assets are
not recognized
Item 31/12/2024 31/12/2023
Deductible temporary differences 1126951677.30 966126806.19
Deductible losses 1637807708.04 2334799700.50
Total 2764759385.34 3300926506.69
The Group recognizes deferred income tax assets to the extent of future taxable income that is likely
to be obtained to offset the deductible temporary differences and deductible losses. For the excess
of deductible temporary differences and deductible losses over future taxable income no deferred
tax assets are recognized.
(5) Deductible losses for which deferred tax assets are not recognized will be expired in the
following years:
Year 31/12/2024 31/12/2023
2024-483200212.68
2025375181018.80375189307.19
2026105089811.43110765532.94
2027332432966.78612819518.30
2028753239633.32752825129.39
202971864277.71-
Total 1637807708.04 2334799700.50
23. Other non-current assets
Item 31/12/2024 31/12/2023
Advances for the channel project (Note 1) 1037329218.89 1013508448.79
Prepayments for fixed assets 117351349.97 144896516.09
Prepayments for terminal operating right 28542865.38 29807737.16
Others 14325919.01 5943287.58
Sub-total 1197549353.25 1194155989.62
Less: provision for impairment (Note 2) 88524171.44 -
total 1109025181.81 1194155989.62
Note 1: This represents that the Company's subsidiary Zhanjiang Port upon its reorganization into
a joint stock company in 2007 signed the Channel Arrangement Agreement with State-
owned Assets Supervision and Administration Commission of Zhanjiang (hereinafter
referred to as "Zhanjiang SASAC") and China Merchants International Terminal (Zhanjiang)
Co. Ltd. According to the agreement the channel belongs to Zhanjiang SASAC therefore
the Group presented the advances of channel project that should be repaid by Zhanjiang
SASAC as other non-current assets.- 113 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
23. Other non-current assets - continued
Note 2: In this year based on the credit risk rating results the Group accrued the corresponding
credit impairment of RMB 88524171.44 for the advances for the channel project.
24. Short-term borrowings
(1) Classification of short-term borrowings
Item 31/12/2024 31/12/2023
Credit borrowings 12771225106.96 15593937427.86
Guaranteed borrowings (Note 1) - 110096708.33
Mortgage borrowings (Note 2) 20017034.73 10011152.78
Total 12791242141.69 15714045288.97
Note 1: The borrowings are guaranteed by Guangdong Zhanjiang Port Logistics Co. Ltd. (hereinafter
referred to as "Zhanjiang Port Logistics") a subsidiary of the Company the loan has been repaid
within this year.Note 2: It represents the short-term borrowings obtained by China Merchants Port (Zhoushan) Ro/Ro
Terminal Co. Ltd. (hereinafter referred to as "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 2024 the Group has no short-term borrowings that are overdue.
25. Bills payable
Category 31/12/2024 31/12/2023
Bank acceptance 1536194.00 64280925.21
Commercial acceptance - 9180240.61
Total 1536194.00 73461165.82
Note: As at 31 December 2024 the Group has no bills payable due and unpaid.
26. Accounts payable
Item 31/12/2024 31/12/2023
Service fee 177881786.24 246400717.07
Material purchase fee 147233743.30 117170447.10
Construction fee 97723911.20 100672753.10
Equipment payments 79246916.34 52762565.74
Rental fee 19621514.17 13591518.23
Others 264122661.08 161167136.01
Total 785830532.33 691765137.25
- 114 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
26. Accounts payable - continued
(1) Aging of accounts payable
31/12/202431/12/2023
Aging Proportion Proportion
Amount Amount
(%)(%)
Within 1 year (Including 1 year) 694992359.27 88.44 617528837.76 89.27
1-2 years (Including 2 years) 46762212.21 5.95 26506267.62 3.83
2-3 years (Including 3 years) 11450482.24 1.46 30254034.46 4.37
More than 3 years 32625478.61 4.15 17475997.41 2.53
Total 785830532.33 100.00 691765137.25 100.00
(2) Significant accounts payable aged more than 1 year
Name of entity 31/12/2024 Aging Reason for outstanding
1-2 years more To be paid upon
Quanzhou Antong Logistics Co. Ltd. 17869057.61
than 3 years confirmation by both parties.Knor Ambado FZCO 14376800.00 1-2 years To be paid after acceptance
27. Advance payments received
Item 31/12/2024 31/12/2023
Rental fee received in advance 14371546.45 8993727.31
Others 204691.39 8393810.05
Total 14576237.84 17387537.36
(1) Aging of advance payments received
31/12/202431/12/2023
Aging Proportion Proportion
Amount Amount
(%)(%)
Within 1 year (Including 1 year) 13621118.48 93.45 17387537.36 100.00
1-2 years (Including 2 years) 955119.36 6.55 - -
Total 14576237.84 100.00 17387537.36 100.00
(2) As at 31 December 2024 the Group has no significant advance payments received aged
more than one year.
(3) For the year ended 31 December 2024 the Group has no advance payments received with
significant changes in carrying amount.
28 Contract liabilities
(1) Details of contract liabilities
Item 31/12/2024 31/12/2023
Unused sales discounts 123329461.62 -
Port and service fees collected in advance 123282437.42 111067746.52
Storage fees collected in advance 5407746.76 3204091.87
Others 15868626.82 27808262.61
Total 267888272.62 142080101.00
- 115 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28 Contract liabilities - continued
(2) Revenue recognized in the current year including the book value of contract liabilities at
the beginning of the year
At the beginning of this year the book value of contract liabilities was RMB 104820766.77 which
was recognized as revenue in this year including contract liabilities arising from settled and
uncompleted accounts formed by contracts for advance collection of port and service fees advance
collection of storage fees and other contracts.
(3) As at 31 December 2024 the Group has no significant contract liabilities aged more than
one year.
(4) Qualitative analysis of contract liabilities
Contract liabilities mainly refer to unused sales discounts and fees collected by the Group for
providing port services to customers. Unused sales discount refers to the sales discount withdrawn
by the Group on the date of financial statements for the sales contract that has fulfilled the
performance obligation and is used to deduct future service fees. Advance port and service fees
shall be collected according to the payment time agreed in the contract. The Group recognizes
contract revenue according to the performance schedule and contract liabilities will be recognized
as revenue after the Group performs its performance obligations.
(5) For the year ended 31 December 2024 the Group has no contract liabilities with significant
changes in book value.
29. Employee benefits payable
(1) Presentation of employee benefits payable
Effect of
changes in the Increase for the Decrease for the
Item 31/12/2023 31/12/2024
scope of year year
consolidation
1. Short-term benefits 910273177.19 1487945.64 3384161755.19 3136351095.99 1159571782.03
2. Post-employment benefits
8354000.03-356453583.76356287016.678520567.12
- defined contribution plan
3. Termination benefits - - 7655610.84 7155610.84 500000.00
4. Other benefits due within 1 year - - 3593576.49 3593576.49 -
5. Others -662570.57 - 10620384.63 9957814.06 -
Total 917964606.65 1487945.64 3762484910.91 3513345114.05 1168592349.15
- 116 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
29. Employee benefits payable - continued
(2) Presentation of short-term benefits
Effect of
changes in the Increase for the Decrease for the
Item 31/12/2023 31/12/2024
scope of year year
consolidation
1. Wages and salaries bonuses
883913277.131487945.642782654165.622541373012.191126682376.20
allowances and subsidies
2. Staff welfare - - 155464313.47 155464313.47 -
3. Social insurance contributions 13812824.03 - 195154885.95 187684047.17 21283662.81
Including: Medical insurance 11207480.67 - 154437632.30 147973246.31 17671866.66
Work injury insurance - - 22615691.07 22615691.07 -
Others 2605343.36 - 18101562.58 17095109.79 3611796.15
4. Housing funds -96673.85 - 190594356.35 190497682.49 0.01
5. Labour union and employee
12735219.61-46979164.1648108640.7611605743.01
education funds
6. Other short-term benefits -91469.73 - 13314869.64 13223399.91 -
Total 910273177.19 1487945.64 3384161755.19 3136351095.99 1159571782.03
(3) Presentation of defined benefit plans
Effect of
changes in the Increase for the Decrease for the
Item 31/12/2023 31/12/2024
scope of year year
consolidation
1. Basic pension 8238945.13 - 260578322.21 261357613.12 7459654.22
2. Unemployment insurance - - 11291732.66 11291732.66 -
3. Enterprise annuity 115054.90 - 84583528.89 83637670.89 1060912.90
Total 8354000.03 - 356453583.76 356287016.67 8520567.12
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
Item 31/12/2024 31/12/2023
Enterprise income tax 576840455.26 819694805.83
VAT 33120467.83 20221806.46
Other taxes 115204803.23 83136960.21
Total 725165726.32 923053572.50
- 117 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables
(1) Presentation of other payables
Item 31/12/2024 31/12/2023
Dividends payable 132334744.28 111897214.27
Other payables 1791645568.70 1542724955.75
Total 1923980312.98 1654622170.02
(2) Dividends payable
Item 31/12/2024 31/12/2023
Ordinary share dividends 132334744.28 111897214.27
Including: China Merchants Zhangzhou Development Zone
79792513.0477734806.46
Co. Ltd.Zhanjiang Infrastructure Construction Investment
52542231.24-
Group Co. Ltd.Dalian Port Container Development Co. Ltd.-16160696.61
(hereinafter referred to as "Dalian Port Container")
Dalian Port Jifa Logistics Co. Ltd. - 9575104.42
Yingkou Port Group Co. Ltd. (hereinafter referred to
-5372456.78
as "Jifa Logistics")
Yiu Lian Dockyards Limited - 2334150.00
Qingdao Port (Group) Co. Ltd. - 720000.00
Note: As at 31 December 2024 The Group has a total of RMB 57734806.46 of important
dividends payable with an aging of more than one year all of which are dividends payable
to China Merchants Zhangzhou Development Zone Co. Ltd. The reason for the non-
disbursement is that the funding plan has not yet been arranged.
(3) Other payables
(a) Disclosure of other payables by nature
Item 31/12/2024 31/12/2023
Amount payable for construction and quality warranty 769762433.76 575941472.21
Guarantees and deposits 271312443.95 246316308.32
Accrued expenses 164709813.36 139920340.25
Customer discount 125850513.80 129780042.30
Port construction and security fee 26454133.47 27939655.23
Others 433556230.36 422827137.44
Total 1791645568.70 1542724955.75
- 118 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables - continued
(3) Other payables - continued
(b) Aging analysis of other payables
31/12/202431/12/2023
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year (including 1 year) 1181359579.96 65.94 912855441.64 59.17
1-2 years (including 2 years) 100163555.98 5.59 191337063.63 12.40
2-3 years (including 3 years) 144116749.00 8.04 92243658.72 5.98
More than 3 years 366005683.76 20.43 346288791.76 22.45
Total 1791645568.70 100.00 1542724955.75 100.00
(c) 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 2-3 years and more than 3
79679187.04 To be paid upon confirmation by both parties
(Ports Administration of Shenzhen Municipality) years
65270708.51
Lac Assal Investment Holding Company Limited 1-2 years and 2-3 years To be paid upon confirmation by both parties
37859359.19 1-2 years、2-3 years and The contracted settlement condition has not
Shanghai Zhenhua Heavy Industries Co. Ltd.more than 3 years been reached
1-2 years and more than 3
Shantou Finance Bureau 10334278.29 To be paid upon confirmation by both parties
years
Guangdong New Guotong Group Co. Ltd. (formerly
known as Guangdong Hengtai Guotong Industrial 10000000.00 More than 3 years To be paid upon confirmation by both partie
Co. Ltd.)
Total 203143533.03 —— ——
32. Non-current liabilities due within one year
Item 31/12/2024 31/12/2023
Long-term borrowings due within one year (Note VIII 34) 3271899155.70 1033008184.01
Including: Credit borrowings 3083776769.64 532282391.00
Guaranteed borrowings - 410725775.58
Mortgage borrowings 110904933.53 30352589.61
Guaranteed and mortgage borrowings 77217452.53 59647427.82
Bonds payable due within one year (Note VIII 35) 6866623467.03 5267490749.32
Lease liabilities due within one year (Note VIII 36) 101402045.53 248634286.86
Long-term payables due within one year (Note VIII 37) 206012716.21 184534373.50
Long-term employee benefits payable due within one year
44885411.1349730825.21
(Note VIII 38)
Other non-current liabilities due within one year (Note VIII 41) 15860000.00 34005870.35
Total 10506682795.60 6817404289.25
33. Other current liabilities
(1) Details of other current liabilities
Item 31/12/2024 31/12/2023
Short-term bonds payable 4020214246.58 2007190136.98
Others 40987514.14 136652397.55
Total 4061201760.72 2143842534.53
- 119 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Other current liabilities - continued
(2) Changes in short-term bonds payable
Interest accrued Amortization Is it in
Coupon Term of Amount issued in Repayment in the
Name of bond Face value Date of issue Amount of issue 31/12/2023 based on par of premiums 31/12/2024 breach of
rate the bond the current year current year
value or discounts contract
1.95% RMB 2 billion Super &
2000000000.00 1.95% 2024-07-31 270 days 2000000000.00 - 2000000000.00 16347945.21 - - 2016347945.21 No
Short-term Commercial Paper
1.96% RMB 2 billion Super &
2000000000.00 1.96% 2024-11-25 180 days 2000000000.00 - 2000000000.00 3866301.37 - - 2003866301.37 No
Short-term Commercial Paper
2.43% RMB 2 billion Super &
2000000000.00 2.43% 2023-11-07 90 days 2000000000.00 2007190136.98 - 4760682.69 - 2011950819.67 - No
Short-term Commercial Paper
1.95% RMB 2 billion Super &
2000000000.00 1.95% 2024-05-06 90 days 2000000000.00 - 2000000000.00 9616438.36 - 2009616438.36 - No
Short-term Commercial Paper
Total 8000000000.00 8000000000.00 2007190136.98 6000000000.00 34591367.63 - 4021567258.03 4020214246.58
- 120 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Long-term borrowings
Range of year-end
Category 31/12/2024 31/12/2023
interest rate
Credit borrowings 16987277281.49 16857281855.60 1.20%-3.80%
Guaranteed borrowings (Note 1) - 845725775.58 /
Mortgage borrowings (Note 2) 683224190.76 314794387.22 3.15%-8.50%
Guaranteed and mortgage borrowings (Note 3) 1183990939.10 1242750120.32 2.95%
Total 18854492411.35 19260552138.72 — —
Less: Long-term borrowings due within one year 3271899155.70 1033008184.01 ——
Including: Credit borrowings 3083776769.64 532282391.00 ——
Guaranteed borrowings - 410725775.58 ——
Mortgage borrowings 110904933.53 30352589.61 ——
Guaranteed and mortgage borrowings 77217452.53 59647427.82 ——
Long-term borrowings due after one year 15582593255.65 18227543954.71 ——
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 2024 the Group obtained long-term loans of RMB 499583188.96 (31
December 2023: RMB 314794387.22) with the land and fixed assets held by Guangdong
Yide Port Co. Ltd. (hereinafter referred to as "Yide Port") and the land held by
Guangdong Shunkong Lingang Development and Construction Co. Ltd. (hereinafter
referred to as " Shunkong Port ") as collateral; Zhoushan RoRo a subsidiary of the
Company obtained a long-term loan of RMB 124053435.96 (31 December 2023: none)
with its land use right and mortgage of above ground buildings; PT Nusantara Pelabuhan
Handal Tbk (hereinafter referred to as "NPH") obtained a long-term loan of RMB
59587565.84 (31 December 2023: none) with fixed assets as collateral.
Note 3: On 31 December 2024 Shenzhen Haixing Port Development Co. Ltd. (hereinafter
referred to as "Shenzhen Haixing") obtained a long-term loan of RMB 1183990939.10
(31 December 2023: RMB 1242750120.32) with the land holding property rights as
collateral and guaranteed by China Merchants Port Holdings and Sinotrans South China
Co. Ltd.Details of mortgage and pledged borrowings are as follows:
Company name 31/12/2024 31/12/2023 Collateral and pledge
Bank of China Qianhai Shekou Branch 1183990939.10 1242750120.32 Land use rights of Shenzhen Haixing
Land use rights and fixed assets of
China Construction Bank Shunde Branch 176172088.91 206239867.27
Yide Port
Bank of Communications Co. Ltd. Guangdong
Land use rights (Phase II) of
Branch、 Shenzhen Branch of China Merchants 323411100.05 108554519.95
Shunkong Port
Group Finance Co. Ltd.Zhoushan RoRo Land Use Right and
China Merchants Group Finance Co. Ltd. 124053435.96 -
Ground Buildings
PT Bank Mandiri (Persero) Tbk 59587565.84 - NPH fixed assets
Total 1867215129.86 1557544507.54
Note: See Note (VIII) 64 for the above mortgages and pledges.- 121 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable
(1) Bonds payable
Item 31/12/2024 31/12/2023
5.000% USD 600 million corporate bond 4374939570.06 4304565371.23
4.750% USD 500 million corporate bond 3661941770.15 3605285143.36
4.000% USD 500 million corporate bond 3599756588.81 3544024689.32
2.690% RMB 3 billion corporate bond 3027415890.40 3027415890.40
2.450% RMB 3 billion corporate bond - 3023560273.97
3.520% RMB 2 billion medium term notes - 2050147945.19
2.180% RMB 2 billion corporate bond 2015648219.17 -
2.800% RMB 1500 million medium term notes 1531413698.63 -
2.300% RMB 1200 million medium term notes 1213081643.84 -
2.100% RMB 800 million medium term notes 807962739.75 -
2.680% RMB 500 million medium term notes 510022465.74 -
Total 20742182586.55 19554999313.47
Less: Bonds payable due within one year 6866623467.03 5267490749.32
Bonds payable due after one year 13875559119.52 14287508564.15
- 122 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable - continued
(2) Details of bonds payable
Effect of
translation of
Interest accrued Amortization Is it in
Coupon Term of Amount issued in Repayment in financial
Name of bonds Face value Date of issue Amount of issue 31/12/2023 based on par of premiums 31/12/2024 breach of
rate the bond the current year current year statements
value or discounts contract
denominated in
foreign currencies
5.000% USD 600 million corporate
USD 600000000.00 5.0000% 2018-08-06 10 years USD 600000000.00 4304565371.23 - 213665731.69 6074078.89 213931257.75 64565646.00 4374939570.06 No
bond
4.750% USD 500 million corporate
USD 500000000.00 4.7500% 2015-08-03 10 years USD 500000000.00 3605285143.36 - 169139831.43 2823615.22 169139831.36 53833011.50 3661941770.15 No
bond
4.000% USD 500 million corporate
USD 500000000.00 4.0000% 2022-06-01 5 years USD 500000000.00 3544024689.32 - 142462742.67 2813183.22 142424049.60 52880023.20 3599756588.81 No
bond
2.690% RMB 3 billion corporate
3000000000.00 2.6900% 2022-08-29 3 years 3000000000.00 3027415890.40 - 80700000.00 - 80700000.00 - 3027415890.40 No
bond
2.450% RMB 3 billion corporate
3000000000.00 2.4500% 2022-09-05 2 years 3000000000.00 3023560273.97 - 49939726.03 - 3073500000.00 - - No
bond
3.520% RMB 2 billion medium
2000000000.00 3.5200% 2021-04-14 3 years 2000000000.00 2050147945.19 - 20252054.81 - 2070400000.00 - - No
term notes
2.180% RMB 2 billion corporate
2000000000.00 2.1800% 2024-08-22 5 years 2000000000.00 - 2000000000.00 15648219.17 - - - 2015648219.17 No
bond
2.800% RMB 1500 million
1500000000.00 2.8000% 2024-04-01 10 years 1500000000.00 - 1500000000.00 31413698.63 - - - 1531413698.63 No
medium term notes
2.300% RMB 1200 million No
1200000000.00 2.3000% 2024-07-10 5 years 1200000000.00 - 1200000000.00 13081643.84 - - - 1213081643.84
medium term notes
2.100% RMB 800 million medium No
800000000.00 2.1000% 2024-07-10 3 years 800000000.00 - 800000000.00 7962739.75 - - - 807962739.75
term notes
2.680% RMB 500 million medium No
500000000.00 2.6800% 2024-04-01 5 years 500000000.00 - 500000000.00 10022465.74 - - - 510022465.74
term notes
Total — — — — — — — — — — 19554999313.47 6000000000.00 754288853.76 11710877.33 5750095138.71 171278680.70 20742182586.55 — —
Less: Bonds payable due within
——————————5267490749.32——————————6866623467.03——
one year
Bonds payable due after one year — — — — — — — — — — 14287508564.15 — — — — — — — — — — 13875559119.52 — —
- 123 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Lease liabilities
(1) Lease liabilities
Category 31/12/2024 31/12/2023
Lease payment 3388957333.56 2782133802.80
Less: Unrecognized financing cost 1900348297.52 1532327309.02
Total 1488609036.04 1249806493.78
Less: Lease liabilities due within one year 101402045.53 248634286.86
Net leases liabilities 1387206990.51 1001172206.92
(2) Maturity of lease liabilities
Item 31/12/2024
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 181534294.23
2nd year subsequent to the balance sheet date 159023726.17
3rd year subsequent to the balance sheet date 121189155.66
Subsequent years 2927210157.50
Total 3388957333.56
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
37. Long-term payables
(1) Presentation of long-term payables
Item 31/12/2024 31/12/2023
Long-term payables 3404462444.72 4001789922.65
Special payables 6132944.24 5606653.02
Total 3410595388.96 4007396575.67
Less: Long-term payables due within one year 206012716.21 184534373.50
Long-term payables due after one year 3204582672.75 3822862202.17
(2) Long-term payables
Item 31/12/2024 31/12/2023
Terminal management rights (Note) 3330284743.90 3958393516.47
Others 74177700.82 43396406.18
Total 3404462444.72 4001789922.65
Less: Long-term payables due within one year 206012716.21 184534373.50
Long-term payables due after one year 3198449728.51 3817255549.15
- 124 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term payables - continued
(2) Long-term payables - continued
Note: Mainly from CICT and TCP terminal 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 2024 the amount payable for the acquisition of
terminal management rights is RMB 881495098.11.TCP a subsidiary of the Company entered into a franchise agreement on the Port of
Paranaguá with the Administration of the Ports of Paranaguá and Antonina- APPA
(hereinafter referred to as "APPA"). The agreement provides for an initial term of 25 years
for the franchising rights. In April 2016 TCP and APPA entered into the Supplemental
Agreement which extends the term to 50 years and will be expired in October 2048.As at
31 December 2024 the amount of franchising rights payable was RMB 2448789645.79.
(3) Special payables
Effect of changes
Increase for Decrease for
Item 31/12/2023 in the scope of 31/12/2024 Reason
the year the year
consolidation
Employee housing fund 5606653.02 - 526291.22 - 6132944.24 Note
Total 5606653.02 - 526291.22 - 6132944.24
Note: This represents the repairing fund for public areas and public facilities and equipment
established after the Group sells the public-owned house on the collectively allocated land
to employees. The fund is contributed by all the employees having ownership of the house
according to the rules and is specially managed and used for specific purpose.
(4) Top four long-term payables at the end of the year
Item 31/12/2024 31/12/2023
APPA Port Authority 2448789645.79 3081892948.91
Sri Lanka Ports Authority 883466471.81 878442953.70
China Merchants Finance Leasing (Tianjin) Co. Ltd. 72206327.12 41454020.04
Staff housing fund 6132944.24 5606653.02
Total 3410595388.96 4007396575.67
- 125 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Long-term employee benefits payable
(1) Long-term employee benefits payable
Effect of translation of
Effect of changes
Increase for Payment in Actuarial Interest financial statements
Item 31/12/2023 in the scope of 31/12/2024
the year current year adjustment adjustment denominated in
consolidation
foreign currencies
Post-employment benefits - net liabilities of defined
509605071.2516435461.0312161218.0423576039.7666185897.5013967104.28-1016674.04593762038.30
benefit plans
Termination benefits 58098932.22 - 1313299.9 1214373.6 - 1366400.00 - 49564258.85
Other long-term benefit (note) 85036743.65 - - 271059.84 - -5108984.85 - 57217158.96
Total 652740747.12 16435461.03 13474518.03 57501012.96 66185897.50 10224519.43 -1016674.04 700543456.11
Less: Long-term employee benefits payable due within
49730825.21————————————44885411.13
one year
Long-term employee benefits payable due after one year 603009921.91 —— —— —— —— —— —— 655658044.98
Note: This represents the employee relocation costs of the Company's subsidiary Shantou Port in connection with land acquisition and reservation.- 126 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Long-term employee benefits payable - continued
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item 2024 2023
I. Opening balance 509605071.25 516950669.03
II. Defined benefit cost included in profit or loss for the period 26128322.32 31630084.71
1. Current service cost 12161218.04 14097094.50
2. Past service cost - 2420000.00
3. Interest adjustment 13967104.28 15112990.21
III. Defined benefit cost included in other comprehensive income 65169223.46 -22975434.75
1. Actuarial gains 66185897.50 -23856287.15
2. Effect of exchange rate changes -1016674.04 880852.40
IV. Other changes -7140578.73 -16000247.74
1. Benefits paid -23576039.76 -16000247.74
2. Changes in the scope of consolidation 16435461.03 -
V. At the end of the year 593762038.30 509605071.25
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.- 127 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Provisions
Effect of
translation of
Increase for Decrease for financial
Item 31/12/2023 31/12/2024 Reason
the year the year statements
denominated in
foreign currencies
Pending litigation 85590059.41 95114382.34 3230773.42 -18037872.83 159435795.50 Note
Total 85590059.41 95114382.34 3230773.42 -18037872.83 159435795.50
Note: This represents the estimated compensation amount RMB 70526490.72 that the
Company's subsidiary TCP may need to pay due to the pending litigation and the estimated
possible compensation amount of Zhanjiang Port a subsidiary of the Company due to
pending litigation is RMB 88909304.78.
40. Deferred income
Effect of changes
Increase for Decrease for
Item 31/12/2023 in the scope of 31/12/2024
the year the year
consolidation
Government grants 1024776557.73 - 295701250.00 51502491.12 1268975316.61
Total 1024776557.73 - 295701250.00 51502491.12 1268975316.61
(1) Government grants included in deferred income
Amount included in
Category of Amount refunded
31/12/2024 current profit and Reason for return
government grants this year
loss
Government grants 1268975316.61 51502491.12 - Not applicable
Total 1268975316.61 51502491.12 - Not applicable
- 128 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Other non-current liabilities
Effect of translation
Increase due to of financial
Item 31/12/2023 change of Increase for the year Decrease for the year statements 31/12/2024
consolidation scope denominated in
foreign currencies
Actuarial cost for the calculation of pension benefit
198642177.67-10130000.0013892319.00-194879858.67
difference for the public security bureau staff (Note 1)
Related party borrowings (Note 2) 11945870.35 - 241786.35 12187656.70 - -
Others 3052086.06 - 1088300.90 43990.79 - 3700396.17
Total 213640134.08 - 11460087.25 26519966.49 - 198580254.84
Less: Other non-current liabilities due within one year 34005870.35 - — — - 15860000.00
Including: Actuarial cost for the calculation of pension
benefits difference for the public security 22060000.00 - — — - 15860000.00
bureau staff
Related party borrowings 11945870.35 - — — - -
Other non-current liabilities due after one year 179634263.73 - — — - 182720254.84
Note 1: It represents the transfer of Zhanjiang Port Public Security Bureau to the People's Government of Zhanjiang Municipality by Zhanjiang Port a subsidiary of the Company
in 2020 in accordance with the Notice on the Issuance of the Program on Deepening the Management System Reform of Ganghang Public Security Organs (Zhong Yang
Bian Ban Fa No. 327 (2017)) and the Notice on the Issuance of the Implementation Plan for Deepening the Management System Reform of Ganghang Public Security
Organs in Guangdong Province (Yue Ji Bian Ban Fa No. 221 (2018)). The former in-service police officers of Zhanjiang Port Public Security Bureau were transferred as
civil servants in accordance with state regulations the retired police officers were included in the scope of pension insurance of the government departments and public
institutions in Zhanjiang and the difference between the pension benefits under the original standard and the retirement benefits of Zhanjiang municipal police officers
(hereinafter referred to as the "pension benefit difference") was borne by Zhanjiang Port.Shantou Port a subsidiary of the Company transferred Shantou Municipal Public Security Bureau Ganghang Branch (formerly the Shantou Port Public Security Bureau)
to Shantou Municipal Government and Shantou Municipal Public Security Bureau Ganghang Branch was fully taken over by Shantou Municipal Public Security Bureau.The in-service police officers were transferred as civil servants in accordance with state regulations the retired police officers were included in the scope of pension
insurance of the government departments and public institutions in Shantou and the pension benefit difference was borne by Shantou Port.Note 2: It represents the principal and interest on borrowings of the subsidiary of the Company Shunkong Port from its non-controlling shareholder Guangdong Shunkong City
Investment Real Estate Co. Ltd. and its related party Guangdong Shunkong Transportation Investment Co. Ltd. repaid in the current year.- 129 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital
31/12/202331/12/2024
Increase for the Decrease for the
Name of investor Proportion Proportion
Investment amount year year Investment amount
（%）（%）
China Merchants Port Investment
1148648648.0045.96--1148648648.0045.92
Development Company Limited
Zhejiang Seaport Investment and
576709537.0023.08--576709537.0023.06
Operation Group Co. Ltd.China Merchants Gangtong
Development (Shenzhen) 370878000.00 14.84 - - 370878000.00 14.83
Co. Ltd.Infrastructure Investment Fund
Management Co. Ltd. –
infrastructure Investment Fund 64850182.00 2.59 - - 64850182.00 2.59
Partnership (Limited
Partnership)
Broadford International Limited 55314208.00 2.21 - - 55314208.00 2.21
China Africa Development Fund
42190151.001.69-26579783.0015610368.000.62
Co. Ltd.Others 240483935.00 9.63 28813603.00 - 269297538.00 10.77
合计2499074661.00100.0028813603.0026579783.002501308481.00100.00
43. Capital Reserve
Amount at the Amount at the end of
Item Increase Decrease
beginning of the year the year
2024
I. Capital premium 36453130588.72 256397774.72 - 36709528363.44
Including: Capital contributed by investors 17068816277.34 39515503.24 - 17108331780.58
Differences arising from business combination
13302937205.73--13302937205.73
involving enterprises under common control
Differences arising from acquisition
4407857529.27216882271.48-4624739800.75
non-controlling interests (Note 1)
Others 1673519576.38 - - 1673519576.38
II. Other capital reserve 623716214.34 36140304.89 6403051.00 653453468.23
Including: Transfer from capital reserve under the previous
-2781133.00---2781133.00
accounting rules
Unexercised share-based payment (Note 2) 6644590.36 264766.44 6403051.00 506305.80
Other changes in owners' equity of the investee
under equity method other than changes in net
619852756.9835875538.45-655728295.43
profit or loss profit distribution and other
comprehensive income
Total 37076846803.06 292538079.61 6403051.00 37362981831.67
2023
I. Capital premium 34208812963.50 2244317625.22 - 36453130588.72
Including: Capital contributed by investors 17068816277.34 - - 17068816277.34
Differences arising from business combination
13302937205.73--13302937205.73
involving enterprises under common control
Differences arising from acquisition
2165423814.022242433715.25-4407857529.27
non-controlling interests
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
-2781133.00---2781133.00
accounting rules
Unexercised share-based payment 5591402.00 1528712.73 475524.37 6644590.36
Other changes in owners' equity of the investee
under equity method other than changes in net
540017602.75103100021.0423264866.81619852756.98
profit or loss profit distribution and other
comprehensive income
Total 34751640835.25 2348946358.99 23740391.18 37076846803.06
Note 1: The change in this year is mainly because the Company and its subsidiary Port Development (Hong Kong)
Co. Ltd. increased their holding of ordinary shares of China Merchants Group Port Holdings and the capital
reserve increased by RMB 216882271.48 in this period. See Note (XI) 2 for details
Note 2: Refer to Note (XVI) for details.- 130 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Other comprehensive income
2024
Less: Amount Less: Amount
included in other included in other
Amount at the comprehensive comprehensive Attributable to non-
Amount at the end of
Item beginning of the Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the controlling Other changes
the year
year 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
2024
I. Other comprehensive income that will not be reclassified
-22859768.83-221412074.80---4502591.44-102848966.14-114060517.22--125708734.97
subsequently to profit or loss
Including: Changes arising from remeasurement of defined
-2709609.54-70324586.90---11930.28-24453072.38-45859584.24--27162681.92
benefit plans
Other comprehensive income that can't be
-92749398.41-133077726.79----64909867.66-68167859.13--157659266.07
reclassified to profit or loss under equity method
Changes in fair value of other equity instruments 72599239.12 -18009761.11 - - -4490661.16 -13486026.10 -33073.85 - 59113213.02
II. Other comprehensive income that will be reclassified
-880766825.52-1312433197.04----551905676.96-760527520.08--1432672502.48
subsequently to profit or loss
Including: Other comprehensive income recognised under the
-426790507.2723077622.64---25113263.42-2035640.78--401677243.85
equity method
Translation differences of financial statements
-453976318.25-1335510819.68----577018940.38-758491879.30--1030995258.63
denominated in foreign currencies
Total other comprehensive income -903626594.35 -1533845271.84 - - -4502591.44 -654754643.10 -874588037.30 - -1558381237.45
2023
I. Other comprehensive income that will not be reclassified
51014303.0660755557.83--846996.46-73874071.89133782633.26--22859768.83
subsequently to profit or loss
Including: Changes arising from remeasurement of defined
-10189712.8825003573.00---7480103.3417523469.66--2709609.54
benefit plans
Other comprehensive income that can't be
-8907673.3432473509.74----83841725.07116315234.81--92749398.41
reclassified to profit or loss under equity method
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
-740567922.92149948207.40----140198902.60290147110.00--880766825.52
subsequently to profit or loss
Including: Other comprehensive income recognised under the
-60762188.43-767504700.07----366028318.84-401476381.23--426790507.27
equity method
Translation differences of financial statements
-679805734.49917452907.47---225829416.24691623491.23--453976318.25
denominated in foreign currencies
Total other comprehensive income -689553619.86 210703765.23 - - 846996.46 -214072974.49 423929743.26 - -903626594.35
- 131 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
45. Specific reserve
Item 31/12/2023 Increase Decrease 31/12/2024
Safety production cost 34003994.41 59210779.71 53140126.85 40074647.27
46. Surplus reserve
2024
Item 31/12/2023 Increase Decrease 31/12/2024
Statutory surplus reserve 1095980563.68 153556766.82 - 1249537330.50
2023
Item 31/12/2022 Increase Decrease 31/12/2023
Statutory surplus reserve 1001917449.15 94063114.53 - 1095980563.68
Note 1: According to the Company Law of the People's Republic of China and the Articles of the
Company the Company withdraws the statutory surplus reserve at 10% of the annual net profit.When the accumulated amount of the statutory surplus reserve reaches more than 50% of the
registered capital it can no longer be withdrawn. The statutory surplus reserve can be used to cover
losses or increase share capital after approval. According to the resolution of the Board of Directors
the Company appropriated the statutory surplus reserve of about RMB 153556766.82 for the year
ended 31 December 2024 and the cumulative amount reached 50% of the registered capital on 31
December 2024 (2023: 10% of net profit totalling about RMB 94063114.53)
47. Retained earnings
Proportion of
Item Amount appropriation or
allocation
2024
Retained earnings at the beginning of the year before adjustment 19045313519.75
Add: Adjustment to Retained earnings at beginning of the year -
Including: Changes in accounting policies -
Retained earnings at the beginning of the year after adjustment 19045313519.75
Add: Net profit of the year attributable to shareholders of the Company 4516301317.16
Retained earnings carried forward from other comprehensive income -
Less: Transfer to statutory surplus reserve in the current year 153556766.82
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1450279490.98 Note 1
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to the National Council for Social Security Fund of the PRC -
Distribution to holders of other equity instruments -
Others -
Retained earnings at the end of the year 21957778579.11
- 132 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Retained earnings - continued
Proportion of
Item Amount appropriation or
allocation
2023
Retained earnings at the beginning of the year before adjustment 16679688347.09
Add: Adjustment to Retained earnings at beginning of the year 22299954.05
Including: Changes in accounting policies 22299954.05
Retained earnings at the beginning of the year after adjustment 16701988301.14
Add: Net profit of the year attributable to shareholders of the Company 3571800762.16
Retained earnings 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
Ordinary shares' dividends converted into share capital -
Pension benefit difference 7944921.60
Transfer to National Council of Social Security Fund -
Distribution to holders of other equity instruments -
Others 1883909.97
Retained earnings at the end of the year 19045313519.75
Note 1: According to the resolution of shareholders' meeting on 31 May 2024 the Company
distributes cash dividends of RMB 5.80 (inclusive of tax) for every 10 shares totalling
RMB 1450279490.98 on the basis of the total shares of 2500481881.
48. Operating income and operating costs
(1) Details of operating income and operating costs
20242023
Item
Income Costs Income Costs
Principal operation 15943748346.43 8972147936.19 15568944030.70 9085897544.06
Other operations 187029681.81 223868756.16 181531749.52 232289163.69
Total 16130778028.24 9196016692.35 15750475780.22 9318186707.75
- 133 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(2) Breakdown information of operating income and operating costs
Ports operation Bonded logistics operation Other operations Total
Category of contracts Operating Operating Operating Operating
Operating costs Operating costs Operating costs Operating costs
income income income income
Mainland China Hong Kong
9912051601.276223113881.90522133599.68278539419.65187029681.81223868756.1610621214882.766725522057.71
and Taiwan area
- Pearl River Delta 6431616103.24 3643704953.94 370565003.19 204025842.87 187029681.81 223868756.16 6989210788.24 4071599552.97
- Yangtze River Delta 1244488.00 7879940.23 - - - - 1244488.00 7879940.23
- Bohai Rim 35429691.48 21554240.31 151568596.49 74513576.78 - - 186998287.97 96067817.09
- Other areas 3443761318.55 2549974747.42 - - - - 3443761318.55 2549974747.42
Other countries 5450560759.22 2427214953.44 59002386.26 43279681.20 - - 5509563145.48 2470494634.64
Total 15362612360.49 8650328835.34 581135985.94 321819100.85 187029681.81 223868756.16 16130778028.24 9196016692.35
- 134 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(3) Description of performance obligations
The Group provides port service bonded logistics service and other services. These services are
obligations performed over a period of time. For 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) 28、Note (VIII) 33 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 267888272.62 of which RMB 186851357.51 is expected to be
recognized as revenue in 2025; and RMB 81036915.11 is expected to be recognized as revenue in
2026 and subsequent years.
49. Taxes and surcharges
Item 2024 2023
Property tax 79101136.67 75912651.85
Land use tax 36984937.58 37809190.33
City construction and maintenance tax 10881226.12 7891945.97
Education surcharges and local education surcharges 8081655.86 5953401.79
Stamp duty 3673318.12 5057465.35
Others (Note) 193611488.80 180373370.90
Total 332333763.15 312998026.19
Note: Others mainly represent the social contribution tax and tax on services borne by TCP a
subsidiary of the Company totalled BRL 137112284.14 (equivalent to RMB
181212315.70) for the year.
- 135 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
50. General and administrative expenses
Item 2024 2023
Employee benefits 1352143332.57 1297690387.03
Depreciation expenses 69734482.97 75710865.79
Fees paid to agencies 76667277.58 63693285.42
Amortization of intangible assets 57062967.74 56233463.25
Others 265936221.32 283313153.89
Total 1821544282.18 1776641155.38
51. Research and development expenses
Item 2024 2023
Employee benefits 127706303.07 163593250.77
Direct materials and outsourced R&D 67418187.58 41115107.10
Depreciation and amortization 4454711.92 11500358.17
Others 2175863.79 7530356.03
Total 201755066.36 223739072.07
52. Financial expenses
Item 2024 2023
Interest expenses 2255372593.38 2283293756.05
Including: Bank and other borrowings 1084714767.25 894778564.54
Bond interest and bill discount 800626160.05 1027690554.55
Interest expenses of terminal management
203047018.99206277567.64
right(Note)
Interest expenses of lease liabilities 70660449.69 60834329.16
Other interest expenses 56170722.54 48571780.77
Less: Capitalized interest expenses 40153474.86 45140959.39
Less: Interest income 477430320.41 497593921.36
Net exchange loss 109256513.08 85519920.28
Others 10320325.68 13034532.56
Total 1857365636.87 1839113328.14
Note: Details are set out in Note (VIII) 37.
53. Other income
Whether it is
Item 2024 2023
government subsidy
Business development subsidy 75662052.93 113983657.91 Yes
Transfer from deferred income
51502491.12 47704466.26 Yes
(Note VIII 40)
Subsidy for general and administrative
45939617.40 - Yes
expenses of bonded port area
Others 12306141.84 62701136.60 ——
Total 185410303.29 224389260.77 ——
Including: Government grants 183382851.80 196942969.60 ——
- 136 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
54. Investment income
(1) Details of investment income:
Item 2024 2023
Income from long-term equity investments under equity method 6441005613.25 5979007585.96
Including: Income from long-term equity investments of
6073558615.465582402904.90
associates under equity method
Income from long-term equity investments of joint
367446997.79396604681.06
ventures under equity method
Investment income from disposal of subsidiaries - 216949902.47
Income from disposal of long-term equity investments - 77647.56
Investment income from financial assets held for trading 59078998.12 91219728.19
Investment income from other non-current financial assets 36181898.66 41365576.62
Dividend income from investments in other equity instruments 10815000.00 20056500.00
Others -84978.53 -
Total 6546996531.50 6348676940.80
55. Gains from changes in fair value
Item 2024 2023
Financial assets held for trading 40176493.90 49197662.35
Other non-current financial assets 350055871.25 24155138.17
Including: Financial assets at fair value through profit or loss 350055871.25 24155138.17
Total 390232365.15 73352800.52
56. Reversal of credit impairment
Item 2024 2023
I. Credit impairment of accounts receivable -1772048.18 -9285389.19
II. Reversal of impairment of other receivables 363283803.95 43872200.88
III. Reversal of impairment of long-term receivables 6724.75 2697229.49
IV. Credit impairment of other non-current assets -88524171.44 -
Total 272994309.08 37284041.18
- 137 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
57. Impairment losses
Item 2024 2023
Impairment losses of fixed assets - -149923619.44
Impairment losses of intangible assets - -41473147.97
Reversal of impairment losses of inventories - 99456.13
Impairment losses of long-term equity investments -8113482.64 -
Impairment losses of construction in progress -767306.24 -
Total -8880788.88 -191297311.28
58. Gains from asset disposals
Amount included in non-
Item 2024 2023 recurring profit or loss
for the current year
Gains from disposal of non-current assets 34062395.75 36759532.61 34062395.75
Including: Gains from disposal of intangible
18456558.0635051791.8018456558.06
assets
Gains from disposal of
15323446.421713921.0415323446.42
fixed assets
Others (“-” for losses) 282391.27 -6180.23 282391.27
Total 34062395.75 36759532.61 34062395.75
59. Non-operating income
Amount included in
non-recurring profit or
Item 2024 2023
loss for the current
year
Compensation received for violation of
25233458.0655396338.32253458.06
contracts
Income from relocation compensation 9072904.37 5558730.17 90724.3
Gains from retirement or damage of
4433441.491966904.66431.49
non-current assets
Including: Gains from retirement
4433441.491765984.40431.49
or damage of fixed assets
Exempted current accounts 2087824.66 197118.09 20874.6
Others 18191026.74 24182932.88 18191026.74
Total 59018655.32 87302024.12 5901865.32
- 138 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
60. Non-operating expenses
Amount included in
non-recurring profit
Item 2024 2023
or loss for the
current year
Litigation loss 8725469.87 42689603.93 8725469.Losses on retirement of non-current
18274807.1224548001.45182740.12
assets
Including: Losses on retirement
18274807.1222356701.04182740.12
or damage of fixed assets
Expenditure on public welfare
11881883.0511153329.51183.05
donations
Compensation and liquidated damages 689548.54 1819985.90 689548.54
Others 30680393.15 16861919.93 306839.15
Total 70252101.73 97072840.72 702510.73
61. Borrowing costs
Item Capitalization rate Amount capitalized
Construction in progress — — — —
Phase I of the second phase of the wharf project in the local
3.41%9469073.60
operation area of Goshan Port Area is controlled in sequence
Phase I project for the stuffing and destuffing service area of
3.50%3225990.15
Baoman Port Area Zhanjiang Port
Zhanjiang Port Baoman Port Area Container Terminal
2.70%3142500.00
Phase I Expansion Project
Dongguan Machong Port Area Berth 2 # and 3 # Project Bulk
2.40%495141.01
Grain Warehouse Phase III Expansion Project
Other non-current assets — — — —
Advances for channels 4.35% 23820770.10
Sub-total — — 40153474.86
Interest expenses included in profit or loss for the period
(Excludes interest expense on terminal operating rights and — — 1941511649.84lease liabilities）
Total — — 1981665124.70
Note: The capitalization rate is calculated and determined according to the weighted average
interest rate of general borrowings
- 139 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
62. Translation of foreign currencies
Item 2024
Exchange differences included in profit or loss for the period 109256513.08
Total 109256513.08
63. Income tax expenses
Item 2024 2023
Current income tax expenses 1056743121.95 1129424872.77
Deferred income tax expenses 196094824.95 174154980.16
Total 1252837946.90 1303579852.93
Reconciliation between income tax expense and accounting profit is as follows:
Item 2024
Total profit 10131344256.81
Income tax expenses calculated at 25% 2532836064.20
Effect of non-deductible costs expenses and losses 288893402.02
Accrued income tax 421257432.43
Effect of deductible temporary differences and deductible losses
67370194.91
for which deferred tax assets are not recognized in the year
Effect of tax-free income (Note) -1055413260.46
Effect of tax incentives and changes in tax rate -602787139.81
Effect of different tax rates of subsidiaries operating in other jurisdictions -224973706.80
Effect of utilizing deductible losses for which deferred tax assets
-84152877.73
were not recognized in prior period
Effect of adjustments to income tax of prior year -110274785.32
Others 20082623.46
Income tax expenses 1252837946.90
Note: This mainly represents the tax effect of income from investments in joint ventures and
associates.- 140 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Assets with restricted ownership and use right
31/12/202431/12/2023
Item
Book value Carrying amount Type of restriction Status of restriction Book value Carrying amount Type of restriction Status of restriction
Restricted margin Interest receivable
Cash and bank balances Performance bond
115331146.22 115331146.22 interest receivable not performance bond 61032547.14 61032547.14 Restricted guarantees
(Note 1) frozen funds etc
actually received frozen funds etc
Fixed assets (Note 2) 551053503.71 467531821.78 Mortgage Mortgage borrowings 330222332.58 291001239.59 Mortgage Mortgage borrowings
Intangible assets
624297693.92 624297693.92 Mortgage Mortgage borrowings 457654685.65 457654685.65 Mortgage Mortgage borrowings
(Note 3)
Total 1290682343.85 1207160661.92 — — — — 848909565.37 809688472.38 — — — —
Note 1: Details of restricted cash and bank balances are set out in Note (VIII) 1.Note 2: Details of mortgage borrowings are set out in Note (VIII) 24 and Note (VIII) 34.- 141 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Provision for impairment of assets and provision for bad debts
Effect of translation
Effect of Other Other
Write-off and Transfer-out due of financial
changes in the Provision for the Reversal for the increases decreases
Item 31/12/2023 charge-off for to sale in the statements 31/12/2024
scope of year year for the for the
the year current year denominated in
consolidation year year
foreign currencies
Provision for bad debts of accounts
91022363.09788447.748974855.96-7202807.78-57892.46----4561521.4688963445.09
receivable
Provision for bad debts of other receivables 957081730.86 - 16639764.39 -379923568.34 - - - - -28204288.01 565593638.90
Provision for decline in value of inventories 1234628.38 - - - -92227.23 - - - 11035.57 1153436.72
Provision for bad debts of long-term
1178166.70-45771.75-52496.50-----1171441.95
receivables
Provision for impairment of long-term equity
362334075.76-8113482.64------35025295.78335422262.62
investments
Provision for impairment of fixed assets 213504483.08 - - - - - - - -214100.02 213290383.06
Provision for impairment of construction in
--767306.24-----11172.29778478.53
progress
Provision for impairment of intangible assets 57010270.07 - - - - - - - - 57010270.07
Provision for impairment of goodwill 970663044.33 - - - - - - - - 970663044.33
Other non-current assets - - 88524171.44 - - - - - - 88524171.44
Total 2654028762.27 788447.74 123065352.42 -387178872.62 -150119.69 - - - -67982997.41 2322570572.71
- 142 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Items in cash flow statement
(1) Cash relating to operating activities
Proceeds from other operating activities
Item 2024 2023
Interest income 307426299.38 316807536.02
Government grants 420033639.31 163169407.30
Guarantees and deposits 49702895.76 59967562.07
Insurance indemnities 5913248.16 11868450.00
Rentals 35992263.90 11677109.86
Operation compensation received 337185774.00 -
Others 256914973.60 364073953.84
Total 1413169094.11 927564019.09
Payment for other operating activities
Item 2024 2023
Advance payment 123589342.34 191928420.03
Payment of operating costs and management expenses and other
129352215.13167200604.70
daily operating related expenditures
Guarantees and deposits 34887031.26 59616680.63
Others 488214418.74 434481353.85
Total 776043007.47 853227059.21
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item 2024 2023
Recovered structured deposits 26450000000.00 28397000000.00
Proceeds from lending 16260626.10 2965681743.10
Dividends received 2843360904.43 2186696975.69
Proceeds from disposal of investments (Note 1) 1113331868.18 -
Proceeds from disposal of subsidiaries (Note 2) - 1683385533.43
Total 30422953398.71 35232764252.22
Note 1: The proceeds form disposal of investments are mainly the proceeds from disposal of the
shares of Qingdao Port International Co.Ltd.Note 2: The proceeds received from disposal of subsidiaries last year represent the amount
received for disposal of Ningbo Daxie Container Terminal Co. Ltd.- 143 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Items in cash flow statement - continued
(2) Cash relating to investing activities - continued
Cash payments relating to significant investing activities
Item 2024 2023
Purchase of structured deposits 27450000000.00 29967000000.00
Total 27450000000.00 29967000000.00
Proceeds from other investing activities
Item 2024 2023
Proceeds from lending by Assal Lake Investment Holding
16260626.10-
Co.Ltd.Proceeds from lending by Terminal Link SAS - 2965681743.10
Proceeds from interest on advances for projects - 177940904.60
Others - 21332655.57
Total 16260626.10 3164955303.27
Payment for other investing activities
Item 2024 2023
Payment of taxes on land acquisition 259533828.27 -
Payments for performance guarantees - 39087797.69
Proceeds from disposal of subsidiaries - 35267442.35
Others 1606719.07 8308063.29
Total 261140547.34 82663303.33
(3) Cash relating to financing activities
Proceeds from other financing activities
Item 2024 2023
Sale and leaseback proceeds 40000000.00 328026212.50
Others 15862550.05 6728017.13
Total 55862550.05 334754229.63
- 144 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Items in cash flow statement - continued
(3) Cash relating to financing activities - continued
Payment for other financing activities
Item 2024 2023
Repayment of perpetual bonds - 4222148460.84
Payment for the Company's acquisition of non-controlling
148276411.09872848916.41
interests of CM Port
Payment for lease 316100576.04 829455300.35
Repurchase shares of China Merchants Harbor Group
50559789.14-
Co. Ltd.Payment for the Company's acquisition of non-controlling
-818659106.04
interests of Oasis King International Limited
Payment for the Company's acquisition of non-controlling
interests of China Merchants International Technology Co. - 109901500.00
Ltd. (hereinafter referred to as " CM International Tech ")
Others 24987752.08 14080546.68
Total 539924528.35 6867093830.32
Changes in liabilities arising from financing activities
Increase for the year Decrease for the year
Item 31/12/2023 Non-cash Non-cash 31/12/2024
Cash changes Cash changes
changes changes
Short-term borrowings 15714045288.97 9797576997.55 944766153.00 12943190318.63 721955979.20 12791242141.69
Long-term borrowings 18227543954.71 4967267977.29 439339278.38 5135247147.85 2916310806.88 15582593255.65
Non-current liabilities
6817404289.25-11411848839.197474762370.57247807962.2710506682795.60
due within one year
Bonds payable 14287508564.15 6000000000.00 180279787.37 - 6592229232.00 13875559119.52
Lease liabilities 1001172206.92 - 609931951.60 - 223897168.01 1387206990.51
Dividends payable 111897214.27 - 4971101800.37 4950664270.36 - 132334744.28
Other current liabilities 2007190136.98 6000000000.00 34591367.63 4021567258.03 - 4020214246.58
Total 58166761655.25 26764844974.84 18591859177.54 34525431365.44 10702201148.36 58295833293.83
(4) The Group has no significant cash flows presented on a net basis.
(5) The Group has no significant activities that do not involve cash receipts and payment for
the current period but have an impact on the enterprise's financial position or may affect the
enterprise's cash flows in the future and their financial effects.- 145 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Supplementary information 2024 2023
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 8878506309.91 7495612085.76
Add: Impairment losses 8880788.88 191297311.28
Reversal of credit impairment -272994309.08 -37284041.18
Depreciation of fixed assets 1953338801.43 1983548731.36
Depreciation of investment properties 181519507.74 182833076.22
Depreciation of right-of-use assets 343623899.63 357502960.45
Amortization of intangible assets 688356905.31 686879674.72
Amortization of long-term deferred expenses 100433522.79 92971461.67
Gains from disposal of fixed assets intangible assets
-34062395.75-36759532.61
and other long-term assets
Losses on retirement of fixed assets intangible assets
13841365.6322581096.79
and other long-term assets
Losses rising from changes in fair value ("-" for gains) -390232365.15 -73352800.52
Financial expenses 2311915401.98 2185350735.70
Investment loss (income) ("-" for income) -6546996531.50 -6348676940.80
Decrease in deferred tax assets 49582269.26 19435343.92
Increase in deferred tax liabilities 146512555.69 154719636.24
Decrease (Increase) in inventories ("-" for increase) -50978635.81 6316130.87
Decrease (Increase) in operating receivables ("-" for increase) 146070761.75 -132511582.62
Increase (Decrease) in operating payables ("-" for decrease) 485894971.69 -170856712.08
Net cash inflow from operating activities 8013212824.40 6579606635.17
2. Significant investing and financing activities that do not involve
cash receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
3. Net changes in cash and cash equivalents:
Cash at the end of the year 16515069554.91 16018613631.10
Less: Opening balance of cash 16018613631.10 13567309471.62
Add: Cash equivalents at the end of the year - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 496455923.81 2451304159.48
(2) Cash and cash equivalents at the end of the year
Item 31/12/2024 31/12/2023
I. Cash 16515069554.91 16018613631.10
Including: Cash on hand 457486.90 974692.93
Bank deposits available for payment at any time 16444638576.67 16009954475.85
Other monetary funds available for payment at any time 69973491.34 7684462.32
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the year 16515069554.91 16018613631.10
- 146 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Supplementary information to the cash flow statement - continued
(3) Net payment for acquisition of subsidiaries
Item Amount
Cash or cash equivalents received in the current year from acquisition of subsidiaries
428196206.32
in the current year
Less: Cash and cash equivalents held by subsidiaries on the purchase date 120511752.33
Less: Payable equity purchase funds 14325890.39
Add: Cash or cash equivalents received in the current year for business combinations in
-
previous periods
Net cash paid to acquire subsidiaries 293358563.60
Net assets obtained from subsidiaries 372477073.46
(4) Payment for dividends profit distributions or interest
Item 2024 2023
Dividends and profits paid to non-controlling shareholders
3553580816.501955677172.68
of subsidiaries
Cash paid for interest repayment 1955539593.93 2085251461.30
Profit distributions 1452793553.86 1126766912.03
Total 6961913964.29 5167695546.01
(5) The Group has no limited scope of use but is still listed as cash and cash equivalents.
(6) See Note VIII 1 (3) for details of cash at bank and on hand not belonging to cash and cash
equivalents.- 147 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Foreign currency monetary items
Foreign currency at the RMB at the end of the
Item Exchange rate
end of the year year
Cash and bank balances 2912640425.51
Including: HKD 22599852.41 0.9260 20927463.33
USD 210719518.34 7.1884 1514736185.64
RMB 1124472916.40 1.0000 1124472916.40
EUR 30807502.80 7.5257 231848023.82
AUD 4583056.65 4.5070 20655836.32
Accounts receivable 202376754.52
Including: HKD 89996.31 0.9260 83336.58
USD 1395811.63 7.1884 10033652.32
EUR 25547094.04 7.5257 192259765.62
Other receivables 761290697.14
Including: HKD 1005827.69 0.9260 931396.44
USD 74817750.03 7.1884 537819914.32
EUR 5479143.73 7.5257 41234391.97
RMB 181256685.00 1.0000 181256685.00
AUD 10718.75 4.5070 48309.41
Long-term receivables 1097372535.36
Including: EUR 25995028.12 7.5257 195630783.12
AUD 200075826.99 4.5070 901741752.24
Short-term borrowings 2480000000.00
Including: RMB 2480000000.00 1.0000 2480000000.00
Accounts payable 37715519.96
Including: HKD 1343915.75 0.9260 1244465.98
USD 340726.28 7.1884 2449276.79
EUR 4520745.87 7.5257 34021777.19
Other payables 833584685.87
Including: HKD 38048963.19 0.9260 35233339.91
USD 59229016.40 7.1884 425761861.49
EUR 45596922.20 7.5257 343148757.40
RMB 29440727.07 1.0000 29440727.07
Non-current liabilities due
5759766301.11
within one year
Including: USD 523215014.39 7.1884 3761078809.42
RMB 1998687491.69 1.0000 1998687491.69
Long-term borrowings 2350000000.00
Including: RMB 2350000000.00 1.0000 2350000000.00
Bonds payable 7875559119.55
Including: USD 1095592777.19 7.1884 7875559119.55
- 148 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Leases
(1) Lessor under operating lease
Item Amount
I. Operating income — —
Lease income 317717398.85
Including: Income related to variable lease payments that are not included
-
in lease receipts
II. Undiscounted lease receipts received after the balance sheet date 623166122.47
1st year 200957788.17
2nd year 123484871.98
3rd year 101760390.99
4th year 68366980.15
5th year 42448803.16
Over 5 years 86147288.02
Note: The operating leases where the Group acts as the lessor are related to port and terminal
facilities machinery and equipment vehicles land and buildings with lease terms ranging
from 0.6 years 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 70660449.69
Short-term lease expenses that are accounted for using simplified approach
63996021.37
and included in cost of related assets or profit or loss for the period
Expenses on leases of low-value assets (exclusive of expenses on short-term leases
of low-value assets) that are accounted for using simplified approach and included in -
cost of related assets or profit or loss for the period
Variable lease payments that are included in cost of related assets or profit or loss
-
but not included in measurement of lease liabilities
Including: The portion arising from sale and leaseback transactions -
Income from sub-lease of right-of-use assets 14578101.47
Total cash outflows relating to leases 380096597.41
Losses from sale and leaseback transactions 3337879.11
Cash inflows from sale and leaseback transactions 40000000.00
Cash outflows from sale and leaseback transactions 98454482.39
Others -
- 149 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Leases - continued
(2) Lessee - continued
Sale and leaseback transactions and basis for determination:
For the purpose of raising funds and leasing back for use the Company carries out sale and
leaseback transaction with the legally owned terminal assets as the subject of the transfer and the
leased assets for a term of three years. As the Company is entitled to repurchase at the expiry of
the lease term and the repurchase price is not lower than the original selling price it is considered
as a financing transaction and is recognized as a long-term payable when the amount is received
from the lessor and the difference between the original selling price and the repurchase price is
recognized as interest expenses.(IX) R&D EXPENDITURE
1. Disclosure by nature of expenses
Item 2024 2023
Employee benefits 130912466.55 166273348.83
Direct materials and outsourced R&D 82743846.15 78769899.84
Depreciation and amortisation 4568822.85 11654856.90
Others 31884552.82 15963664.54
Total 250109688.37 272661770.11
Including: R&D expenditure recorded as expenses 201755066.36 223739072.07
R&D expenditure capitalised 48354622.01 48922698.04
- 150 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(IX) R&D EXPENDITURE - continued
2. Expenditures on R&D projects which are eligible for capitalisation
Increase Decrease
Item 31/12/2023 Internal Recognised as fixed Recognised as Transferred to profit 31/12/2024
development costs assets intangible assets or loss for the period
ePort comprehensive service
30150532.7113655121.15---43805653.86
platform
Other R&D projects 20839620.47 39717905.17 25527118.56 10422602.94 5018404.31 19589399.83
Total 50990153.18 53373026.32 25527118.56 10422602.94 5018404.31 63395053.69
- 151 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION
1. Business combination not involving enterprises under common control
(1) Business combination involving entities not under common control in the current period
Equity
Proportio acquisition Total fair value of identifiable net
n of equity ratio(Exclu assets of the acquiree on the Revenue of Net profit of Cash flow of
Name of held by ding the the acquiree the acquiree the acquiree Determination Total book net acquisition date
the the increase or assets of the Transaction from the from the from the
No Date of acquisition basis of Goodwill
purchase acquiree decrease of acquiree on the consideration purchase date purchase date purchase date
d party purchase date equity before the purchase date to the end of to the end of to the end of
after
purchase Amount Method merger the year the year the year
date (%) （%）
Transfer of Multi-term Excess
1 NPH 28 June 2024 - 51.00 416919421.83 730347202.86 428196206.32 55719132.86 207359466.75 28980451.83 142293175.74
actual control Surplus Method
NPH is a company incorporated on 29 December 2003 and headquartered in Jakarta Indonesia and its principal activities are engaged in the provision
of container multi-purpose and general terminal services and the provision of port equipment engineering services in Indonesia. Prior to the Merger
the parent company of NPH was PT Episenta Utama Invest asi. On 20 November 2023 China Merchants Port Holdings a subsidiary of the Company
entered into a share purchase agreement with the former controlling shareholder of NPH. Pursuant to the agreement the Group plans to acquire 51%
of the shares of NPH. The aforesaid transaction was completed on 28 June 2024 and since then the Group has the right to appoint most of the members
of the NPH Board and the Board is the authority leading the NPH related business the mechanism of the Board of Directors is approved by more than
half of the votes. As a result the Group is able to control NPH and include it in the scope of the Group's consolidated financial statements.- 152 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION - continued
1. Business combination not involving enterprises under common control - continued
（2）Consolidated cost and goodwill
Consolidation costs NPH
Consolidation costs 428196206.32
——Cash 413870315.93
——Payable equity purchase funds 14325890.39
Total consolidated costs 428196206.32
Less: Share of fair value of identifiable net assets acquired 372477073.46
Goodwill 55719132.86
- 153 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION - continued
1. Business combination not involving enterprises under common control - continued
(3) Identifiable assets and liabilities of the acquiree on the acquisition date
Fair value on the Book value on the
Consolidation costs
purchase date purchase date
Assets:
Current assets 228095320.00 228095320.00
Fixed assets 276830316.55 233575346.96
Right-of-use assets 434204861.23 434204861.23
Intangible assets 449760068.61 44255725.09
Goodwill - 12641544.20
Deferred tax assets 6496130.00 6496130.00
Other non-current assets 12645464.35 12645464.35
Liabilities:
Current liabilities 98088290.00 98088290.00
Long term borrowings 40488900.00 40488900.00
Lease liabilities 399000160.00 399000160.00
Deferred tax liabilities 100345568.88 1618520.00
Other non-current liabilities 15799100.00 15799100.00
Net assets 754310141.86 416919421.83
Less: non-controlling shareholders' equity 23962939.00 23962939.00
Net assets attributable to the parent company 730347202.86 392956482.83
Less: Goodwill - 12641544.20
Identifiable net assets attributable to the parent company 730347202.86 380314938.63
Net assets acquired 372477073.46 193960618.70
If there is an active market for the above identifiable assets their fair values shall be determined
according to the quoted prices in the active market; if there is no active market but there is an active
market for the same or similar assets the fair value shall be determined by referring to the market
price of the same or similar assets; if there is no active market for the same or similar assets
valuation techniques shall be used to determine their fair values.The fair value of the above identifiable liabilities shall be the amount payable or the present value
of the amount payable.
2. Business combination under the same control
There is no business combination under the same control of the Group this year.
3. Reverse purchase
The Group has no reverse purchase this year.
4. Disposal of subsidiaries
The Group did not lose control over the disposal of investment in subsidiaries this year.- 154 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION - continued
5. Change in consolidation scope for other reasons
The Group has not changed the consolidation scope for other reasons this year.(XI) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group - Major subsidiaries
Registered capital Shareholding ratio
Principal
Place of Nature of (RMB'0000 of the Company
Name of the subsidiary place of Acquisition method
incorporation business unless otherwise (%)
business
specified) Direct Indirect
Shenzhen Chiwan International Freight Agency Shenzhen Shenzhen Logistics support
550.00 100.00 - Established through investment
Co. Ltd. China China services
Chiwan Port and Shipping (Hong Kong) Co. Ltd.Investment
(hereinafter referred to as "Wharf Holdings HK China HK China HKD 1000000 100.00 - Established through investment
holding
Hong Kong ")
Dongguan Dongguan Logistics support
Dongguan Shenchiwan Port Affairs Co. Ltd. 45000.00 85.00 - Established through investment
China China services
Dongguan Dongguan Logistics support
Dongguan Shenchiwan Wharf Co. Ltd. 40000.00 100.00 - Established through investment
China China services
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Chiwan Harbor Container Co. Ltd. 28820.00 100.00 -
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Chiwan Port Development Co. Ltd. 10000.00 100.00 -
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Chiwan Container Terminal Co. Ltd. USD 95300000 55.00 20.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Chiwan Tugboat Co. Ltd. 2400.00 100.00 -
China China services enterprises under common control
Logistics support Business combination involving
Chiwan Shipping (Hong Kong) Limited HK China HK China HKD 800000 100.00 -
services enterprises under common control
Investment HKD Business combination involving
CM Port (Note 1) HK China HK China 0.38 49.67
holding 48730938800 enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
China Merchants Bonded Logistics Co. Ltd. 70000.00 40.00 60.00
China China services enterprises under common control
Shenzhen Shenzhen Business combination involving
CM International Tech IT service 8784.82 56.26 43.74
China China enterprises under common control
China Merchants International (China) Investment Shenzhen Shenzhen Investment Business combination involving
USD67400000 - 100.00
Co. Ltd. China China holding enterprises under common control
China Merchants International Container Terminal Qingdao Logistics support Business combination involving
Qingdao China USD 206300000 - 100.00
(Qingdao) Co. Ltd. China services enterprises under common control
Logistics support Business combination involving
China Merchants Container Services Limited HK China HK China HKD 500000 - 100.00
services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
China Merchants Port (Shenzhen) Co. Ltd. 55000.00 - 100.00
China China services enterprises under common control
Engineering
Shenzhen Shenzhen Business combination involving
Shenzhen Haiqin Project Management Co. Ltd. supervision 1000.00 - 100.00
China China enterprises under common control
service
Preparation for
Antonje Wharf Storage Service (Shenzhen) Shenzhen Shenzhen Business combination involving
the warehousing HKD 100000000 - 100.00
Co. Ltd. China China enterprises under common control
project
Preparation for
Shenzhen Shenzhen Business combination involving
ASJ the warehousing HKD 100000000 - 100.00
China China enterprises under common control
project
China Merchants International Terminal (Qingdao) Qingdao Logistics support Business combination involving
Qingdao China USD 44000000 - 90.10
Co. Ltd. China services enterprises under common control
Logistics support Business combination involving
CICT Sri Lanka Sri Lanka USD 150000100 - 85.00
services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Magang Godown & Wharf 33500.00 - 100.00
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Tugboat Co. Ltd. 1500.00 - 100.00
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Port Co. Ltd. 116700.00 - 60.00
China China services enterprises under common control
Zhangzhou Investment Promotion Bureau
Zhangzhou Zhangzhou Logistics support Business combination involving
Xiamenwan Port Affairs Co. Ltd. (hereinafter 44450.00 - 31.00
China China services enterprises under common control
referred to as "Xiamenwan Port Affairs") (Note 2)
Shenzhen Shenzhen Logistics support Business combination involving
Shekou Container Terminals Ltd. HKD 618201200 - 100.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianyunjie Container Terminals Co. Ltd. 60854.90 - 100.00
China China services enterprises under common control
Anxunjie Container Terminals (Shenzhen) Shenzhen Shenzhen Logistics support Business combination involving
127600.00-100.00
Co. Ltd. China China services enterprises under common control
Preparation for
Anyunjie Port Warehousing Service (Shenzhen) Shenzhen Shenzhen Business combination involving
the warehousing 6060.00 - 100.00
Co. Ltd. China China enterprises under common control
project
- 155 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
Shareholding ratio
Principal Registered capital
Place of Nature of of the Company
Name of the subsidiary place of (RMB'0000 unless Acquisition method
incorporation business (%)
business otherwise specified)
Direct Indirect
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Haixing 53072.92 - 100.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianyongtong Terminal Co. Ltd. USD 7000000 - 100.00
China China services enterprises under common control
Logistics support Business combination involving
Yide Port Foshan China Foshan China 21600.00 51.00 -
services enterprises under common control
Investment Business combination involving
Mega SCT BVI BVI USD 120.00 - 80.00
holding enterprises under common control
Investment Business combination involving
Oasis King International Limited BVI BVI USD 100.00 - 100.00
holding enterprises under common control
Republic of Republic of Logistics support Business combination involving
Lome Container Terminal S.A. (Note 3) XOF 200000000 - 100.00
Togo Togo services enterprises under common control
Investment Business combination involving
Gainpro Resources Limited BVI BVI USD 1.00 - 76.47
holding enterprises under common control
Hambantota International Port Group (Private) Logistics support Business combination involving
Sri Lanka Sri Lanka USD 1145480000 - 85.00
Limited services enterprises under common control
Shantou Logistics support Business combination involving
Shantou port Shantou China 12500.00 - 60.00
China services enterprises under common control
Shenzhen Jinyu Rongtai Investment Development Shenzhen Shenzhen Property lease
80000.00 - 100.00 Asset acquisition
Co. Ltd. China China etc.Shenzhen Merchants Qianhaiwan Real Estate Shenzhen Shenzhen Property lease
20000.00 - 100.00 Asset acquisition
Co. Ltd. China China etc.Shenzhen Shenzhen Investment Business combination involving
Juzhongzhi Investment (Shenzhen) Co. Ltd. 4000.00 - 75.00
China China consulting enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianda Tugboat Co. Ltd. 200.00 - 60.29
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
China Ocean Shipping Tally Zhangzhou Co. Ltd. 200.00 - 84.00
China China services enterprises under common control
Logistics support Business combination involving
China Merchants Holdings (Djibouti) FZE Djibouti Djibouti USD 38140000 - 100.00
services enterprises under common control
Investment Business combination involving
Xinda Resources Limited BVI BVI USD 107620000 - 77.45
holding enterprises under common control
Investment Business combination involving
Kong Rise Development Limited HK China HK China USD 107620000 - 100.00
holding enterprises under common control
Logistics support Business combination not involving
TCP Brazil Brazil BRL 68851600 - 100.00
services enterprises under common control
Investment Business combination involving
Direcet Achieve Investments Limited HK China HK China USD 814781300 - 100.00
holding enterprises under common control
Zhoushan Zhoushan Logistics support
Zhoushan RoRo 17307.86 51.00 - Asset acquisition
China China services
Shenzhen Shenzhen Logistics support
Shenzhen Haixing Logistics Development Co. Ltd. 7066.79 - 100.00 Asset acquisition
China China services
Zhanjiang Zhanjiang Logistics support Business combination not involving
Zhanjiang Port 587420.91 30.78 27.58
China China services enterprises under common control
Zhanjiang Port International Container Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
60000.00-80.00
Co. Ltd. China China services enterprises under common control
Zhanjiang Port Petrochemical Terminal Co. Ltd. Zhanjiang Zhanjiang Logistics support Business combination not involving
18000.00-50.00
(Note 4) China China services enterprises under common control
Zhanjiang Zhanjiang Logistics support Business combination not involving
China Ocean Shipping Tally Co. Ltd. Zhanjiang 300.00 - 84.00
China China services enterprises under common control
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
5000.00-100.00
Co. Ltd. China China services enterprises under common control
Zhanjiang Zhanjiang Logistics support Business combination not involving
Zhanjiang Port Logistics 10000.00 - 100.00
China China services enterprises under common control
Guangdong Zhanjiang Port Longteng Shipping Zhanjiang Zhanjiang Logistics support Business combination not involving
9000.00-51.00
Co. Ltd. China China services enterprises under common control
Shantou Logistics support
Shantou Harbor Towage Service Co. Ltd. Shantou China 1000.00 - 100.00 Established through investment
China services
Logistics support
Sanya Merchants Port Development Co. Ltd. Sanya China Sanya China 1000.00 51.00 - Established through investment
services
China Merchants Harbor Modern Logistics
Technology (Shenzhen) Co. Ltd. (Original name: Shenzhen Shenzhen Owning China Business combination involving
HKD 1600000000 - 100.00
China Division of Malai Warehousing (Shenzhen) China China Qianhai property enterprises under common control
Co. Ltd.)
Hong Kong Hong Kong Investment
Ports Development (Hong Kong) Limited 2768291.56 100.00 - Established through investment
China China holding
Property
Shunkong Port Foshan China Foshan China development and 27997.59 51.00 - Asset acquisition
management
South Asia Trade and Logistics Center Logistics support USD
Sri Lanka Sri Lanka - 70.00 Established through investment
Co. Ltd. services 37140000
Logistics support IDR Business combination not involving
NPH (Note 5) Indonesia Indonesia 51.00 -
services 281394199000 enterprises under common control
- 156 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
Note 1: For the year ended 31 December 2024 Port Development (Hong Kong) Co. Ltd.purchased 16364000.00 ordinary shares of China Merchants Port Holdings through the
secondary market. After the completion of the aforementioned purchase transaction the
proportion of the ordinary shares held by the Group in the total issued ordinary shares of
China Merchants Port Holdings has changed from 49.28% to 49.67%.China Merchants Group (Hong Kong) Co. Ltd. (hereinafter referred to as "CMHK")
accounts for 21.85% of the total issued ordinary shares of China Merchants Port Holdings.On 19 June 2018 the Company signed the Agreement on Concerted Action of China
Merchants Port Holdings Limited with CMHK. According to the agreement CMHK has
the voting right of China Merchants Port Holdings entrusted to exercise when voting on
the matters to be considered at the General Meeting of Port Holding Shareholders of China
Merchants Group they are unconditionally consistent with the Company and the opinions
of the Company shall prevail. In March 2022 the Company transferred 43.00% of the
shares held by China Merchants Group Port Holdings to its Hong Kong wholly-owned
subsidiary Port Development (Hong Kong) Co. Ltd. Therefore the Group holds 71.52%
of the voting rights of China Merchants Group Port Holdings in total and can control
them.Note 2: The Group signed the Equity Custody Agreement with China Merchants Zhangzhou
Development Zone Co. Ltd. which agreed that China Merchants Zhangzhou
Development Zone Co. Ltd. entrusted its 29% equity of Xiamenwan Port Affairs to the
Group for operation and management. Therefore the Group has 60% of the voting rights
in Xiamenwan Port Affairs which can be controlled and included in the consolidation
scope of the Group's consolidated financial statements.Note 3: The Group has the right to control Lome Container Terminal S.A. by appointing most
members of the Executive Committee so the Group includes the company into the
consolidation scope of the consolidated financial statements.Note 4: The Group holds 50% equity interest in Zhanjiang Port Petrochemical Terminal Co. Ltd.According to the agreement the Group has control over Zhanjiang Port Petrochemical
Terminal Co. Ltd. and therefore includes it in the scope of consolidation of the
consolidated financial statements.Note 5: The Group completed the acquisition of 51% shares of NPH on 28 June 2024. See Note
(X) for details.- 157 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Significant non-wholly-owned subsidiaries
Year 2024
Proportion of Profit or loss
Dividends distributed Balance of non-
ownership interest attributable to non-
Name of the to non-controlling controlling interests
held by the non- controlling
subsidiary shareholders in the at the end of the
controlling shareholders in the
current year year
shareholders (%) current year
CM Port 50.33 4277480912.41 1774966740.92 61825440800.08
Year 2023
Proportion of Profit or loss
Dividends distributed Balance of non-
ownership interest attributable to non-
Name of the to non-controlling controlling
held by the non- controlling
subsidiary shareholders in the interests at the end
controlling shareholders in the
current year of the year
shareholders (%) current year
CM Port 50.72 3790168766.29 1716130041.14 61593070426.41
- 158 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(3) Major financial information of significant non-wholly-owned subsidiaries
31/12/202431/12/2023
Name of the
Non-current Current Non-current Non-current Current Non-current
subsidiary Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
CM Port 15225606631.78 135382012965.53 150607619597.31 22281042457.07 21803874037.96 44084916495.03 15917026132.04 135313877243.36 151230903375.40 18457977486.53 27802818508.45 46260795994.98
20242023
Name of
Total Total
the Cash flows from Cash flows from
Operating income Net profit comprehensive Operating income Net profit comprehensive
subsidiary operating activities operating activities
income income
CM Port 10990023251.60 7477357716.48 6371332629.59 5708869820.55 10503277811.44 6466697575.11 7608794449.88 4852710141.52
- 159 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
2. Transactions resulting from changes in ownership interests in subsidiaries without
losing control over the subsidiaries
(1) Description of changes in ownership interests in subsidiaries
During the year the Group's ownership interests in CM Port is changed from 49.28% to 49.67%.Details are set out in Note (XI) 1 (1).
(2) Effect of the transactions on non-controlling interests and equity attributable to owners of
the Company
CM Port
Acquisition cost
- Cash 147607116.30
- Fair value of non-cash assets -
Total acquisition cost 147607116.30
Less: Share of net assets of subsidiaries calculated based on the proportion of equity acquired 364489387.78
Difference -216882271.48
Including: Adjustment to capital reserve 216882271.48
Adjustment to surplus reserve -
Adjustment to Retained earnings -
3. Interests in joint ventures and associates
(1) Significant joint ventures or associates
Proportion of ownership
Principal place Place of interests held by the Proportion of voting Accounting treatment of
Investee Nature of business
of business registration Group (%) rights (%) investments in associates
Direct Indirect
Associate
Port and container
SIPG Shanghai PRC Shanghai PRC - 28.05 28.05 Equity method
terminal business
Port and container
Ningbo Zhoushan Ningbo PRC Ningbo PRC 20.98 2.10 23.08 Equity method
terminal business
- 160 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate
SIPG
Item 31/12/2024 / 31/12/2023/
20242023
Current assets 48744038847.45 53049570240.87
Including: Cash and cash equivalents 32830782585.55 35721676040.14
Non-current assets 163311502225.58 150525944932.10
Total assets 212055541073.03 203575515172.97
Current liabilities 23068287468.52 22835359505.98
Non-current liabilities 41578448514.91 44553743360.00
Total liabilities 64646735983.43 67389102865.98
Net assets 147408805089.60 136186412306.99
Non-controlling interests 14101913028.59 13010972126.11
Net assets attributable to owners of the Company 133306892061.01 123175440180.88
Share of net assets calculated based on the proportion of
37392583223.1134550710970.74
ownership interests
Adjustments
- Goodwill 2427508397.27 2427508397.27
- Others 222282154.18 234665770.76
Carrying amount of equity investments in associates 40042373774.56 37212885138.77
Fair value of publicly quoted equity investments in associates 39971634611.40 32003432940.50
Operating income 38116972285.82 37551570005.56
Net profit 16063786892.13 14007787452.35
Net profit attributable to the owner of the parent company of
14954353821.2513203137528.87
the investee in the current year
Other comprehensive income 281406740.21 -58126233.99
Total comprehensive income 16345193632.34 13949661218.36
Dividends received from associates in the current year 1449951451.59 914383798.30
- 161 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate - continued
Ningbo Zhoushan
Item 31/12/2024 / 31/12/2023/
20242023
Current assets 15453223000.00 19223549000.00
Including: Cash and cash equivalents 4586107000.00 9635337000.00
Non-current assets 97445761000.00 93105852000.00
Total assets 112898984000.00 112329401000.00
Current liabilities 17449594000.00 22201633000.00
Non-current liabilities 9899823000.00 9429720000.00
Total liabilities 27349417000.00 31631353000.00
Net assets 85549567000.00 80698048000.00
non-controlling interests 7256126000.00 5828457000.00
Net assets attributable to owners of the Company 78293441000.00 74869591000.00
Share of net assets calculated based on the proportion of
18070126182.8017279901602.80
ownership interests
Adjustments
- Goodwill 1231115756.87 1231115756.87
- Others 120244072.03 120136754.64
Carrying amount of equity investments in associates 19421486011.70 18631154114.31
Fair value of publicly quoted equity investments in associates 17284475843.25 15982528312.20
Operating income 28702311000.00 25993200000.00
Net profit 5408738000.00 5156174000.00
Net profit attributable to the owner of the parent company of
4897513000.004653615000.00
the investee in the current year
Other comprehensive income 110866000.00 76072000.00
Total comprehensive income 5519604000.00 5232246000.00
Dividends received from a ssociates in the current year 408578523.82 390875794.33
- 162 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(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's financial data are accurate to the nearest RMB 1000.00.
5. Summarized financial information of insignificant associates and joint ventures
31/12/202431/12/2023
Item
/2024/2023
Joint ventures:
Total carrying amount of investments 9307873045.30 8957993335.22
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 367446997.79 396604681.06
- Other comprehensive income 161730408.57 -879272391.47
- Total comprehensive income 529177406.36 -482667710.41
Associates:
Total carrying amount of investments 31246297063.40 31864085187.97
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 757730103.41 831571993.78
- Other comprehensive losses (Income) ("-" for losses) -375707391.94 138977006.59
- Total comprehensive income 382022711.47 970549000.37
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.(XII) GOVERNMENT GRANTS
1. Government grants recognised as receivables at the end of current year
Balance of receivables at the end of current year -
2. Liabilities involving government grants
Amount
New Amount
included in Other Related to
Item 31/12/2023 government included in 31/12/2024
non-operating changes assets/income
grants other income
income
Deferred income 1024776557.73 295701250.00 - 51502491.12 - 1268975316.61 Related to assets
Total 1024776557.73 295701250.00 - 51502491.12 - 1268975316.61 — —
- 163 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS - continued
3. Government grants included in profit or loss
Item 2024 2023
Business development subsidy 75662052.93 113983657.91
Subsidy fund for Qianhai Comprehensive Bonded Zone 45939617.40 -
Special operation subsidy 3184128.00 18439586.22
Others 7094562.35 16815259.21
Total 131880360.68 149238503.34
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances financial assets held for
trading bills receivable accounts receivable receivables under financing other receivables long-
term receivables other non-current financial assets borrowings bills payable accounts payable
other payables other current liabilities non-current liabilities due within one year bonds payable
long-term payables other non-current liabilities etc. Details of these financial instruments are
disclosed in Note (VIII). The risks associated with these financial instruments and the policies on
how to mitigate these risks are set out below. Management of the Group manages and monitors
these exposures to ensure the risks are monitored at a certain level.The Group adopts sensitivity analysis technique to analyse how the profit 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.- 164 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The
Group's exposure to the currency risk is primarily associated with HKD USD EUR and AUS.Except for part of the purchases and sales the Group's other principal activities are denominated
and settled in RMB. As at 31 December 2024 the balances of the Group's assets and liabilities are
both denominated in functional currency except that the assets and liabilities set out below are
recorded using foreign currencies. Currency risk arising from the foreign currency balance of assets
and liabilities may have impact on the Group's performance.Item 31/12/2024 31/12/2023
Cash and bank balances 1234472138.05 523517515.06
Accounts receivable 10116992.50 10544159.14
Other receivables 697525377.19 339133935.79
Long-term receivables 1097372535.36 1109592094.82
Short-term borrowings 2480000000.00 2990000000.00
Accounts payable 3693796.53 1379762.77
Other payables 282056319.78 300187007.82
Non-current liabilities due within one year 1998687491.69 9339586.11
Long-term borrowings 2350000000.00 4656000000.00
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.- 165 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and
hedges of a net investment in a foreign operation are highly effective. On the basis of the above
assumption where all other variables are held constant the reasonably possible changes in the
foreign exchange rate may have the following pre-tax effect on the profit or loss for the period and
shareholders' equity:
20242023
Effect on Effect on
Item Changes in exchange rate Effect Effect
shareholders' shareholders'
on profit on profit
equity equity
All foreign currencies 5% increase against RMB -277619930.87 -277619930.87 -362713439.88 -362713439.88
All foreign currencies 5% decrease against RMB 277619930.87 277619930.87 362713439.88 362713439.88
All foreign currencies 5% increase against USD -7224341.41 -7224341.41 -18083083.38 -18083083.38
All foreign currencies 5% decrease against USD 7224341.41 7224341.41 18083083.38 18083083.38
All foreign currencies 5% increase against HKD 23518592.02 23518592.02 23046933.58 23046933.58
All foreign currencies 5% decrease against HKD -23518592.02 -23518592.02 -23046933.58 -23046933.58
5% increase against EUR
All foreign currencies 11455857.12 11455857.12 11592634.53 11592634.53
(including FCFA)
5% decrease against EUR
All foreign currencies -11455857.12 -11455857.12 -11592634.53 -11592634.53
(including FCFA)
All foreign currencies 5% increase against AUD 46122294.90 46122294.90 47096082.98 47096082.98
All foreign currencies 5% decrease against AUD -46122294.90 -46122294.90 -47096082.98 -47096082.98
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.- 166 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.1 Market risk - continued
1.1.2 Interest rate risk - changes in cash flows - continued
Sensitivity analysis on interest rate risk
Sensitivity analysis on interest rate risk is based on the following assumptions:
Fluctuations of market interest rate can affect the interest income or expense of a financial
instrument with floating interest rate;
For a financial instrument at fair value with fixed interest rate the fluctuations of market interest rate
can only affect its interest income or expense;
For a derivative financial instrument designated as hedging instrument the fluctuations of market
interest rate affect its fair value and all interest rate hedges are expected to be highly effective;
The changes in fair value of derivative financial instruments and other financial assets and liabilities
are calculated using cash flow discounting method by applying the market interest rate at balance
sheet date.On the basis of above assumptions where the other variables held constant the pre-tax effect of
possible and reasonable changes in interest rate on the profit or loss for the period and shareholders'
equity are as follows:
20242023
Changes in Effect on Effect on
Item
interest rate Effect on profit shareholders' Effect on profit shareholders'
equity equity
Short-term borrowings and
1% increase -286274021.36 -286274021.36 -342406182.88 -342406182.88
long-term borrowings
Short-term borrowings and
1% decrease 286274021.36 286274021.36 342406182.88 342406182.88
long-term borrowings
1.2 Credit risk
As at 31 December 2024 the Group's maximum exposure to credit risk which may cause a financial
loss to the Group due to failure to discharge an obligation by the counterparties and financial
guarantees issued by the Group (without considering the available collateral or other credit
enhancements) is arising from cash and bank balances (Note (VIII) 1) bills receivable (Note (VIII)
3) accounts receivable (Note (VIII) 4) other receivables (Note (VIII) 7) long-term receivables
(Note (VIII) 11) etc. At the balance sheet date the carrying amounts of the Group's financial assets
represent its maximum exposure to credit risk. In addition the Group's maximum credit risk
exposure to credit losses includes the amount of financial guarantee contract as disclosed in Note
(XVII) 2 "Contingencies". For financial instruments measured at fair value the book value reflects
its risk exposure but not the maximum risk exposure and its maximum risk exposure will change
with the change of future fair value.- 167 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS - continued
1. Risk management objectives policies and procedures and changes for the period
- continued
1.2 Credit risk - continued
In order to minimise the credit risk the Group has delegated a department responsible for
determination of credit limits credit approvals and other monitoring procedures to ensure that
follow-up action is taken to recover overdue debts. In addition the Group reviews the recoverable
amount of financial assets at each balance sheet date to ensure that adequate provision for bad debts
is made for relevant financial assets. In this regard the management of the Group considers that the
Group's credit risk is significantly reduced.The credit risk on cash and bank balances is limited because they are deposited with financial
institutions with high credit ratings.The Group has no significant concentration of credit risk with exposure spread over a number of
counterparties and customers.The Group has adopted a policy to ensure that all sales customers have good credit records.
1.3 Liquidity risk
In the management of the liquidity risk the Group monitors and maintains a level of cash and cash
equivalents deemed adequate by the management to finance the Group's operations and mitigate
the effects of fluctuations in cash flows. The management monitors the utilisation of bank
borrowings and ensures compliance with loan covenants.As at 31 December 2024 the Group had total current liabilities in excess of total current assets of
RMB 6685293596.39. As at 31 December 2024 the Group had available and unused line of credit
and bonds amounting to RMB 40616331020.58 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 Within 1 year 1 to 5 years Over 5 years Total
Short-term borrowings 12791242141.69 13278299013.64 - - 13278299013.64
Bills payable 1536194.00 1536194.00 - - 1536194.00
Accounts payable 785830532.33 785830532.33 - - 785830532.33
Other payables 1923980312.98 1923980312.98 - - 1923980312.98
Non-current liabilities due
10445937384.4711641752954.44--11641752954.44
within one year
Other current liabilities 4061201760.72 4089382582.64 - - 4089382582.64
Long-term borrowings 15582593255.65 - 14250559751.05 2039917590.76 16290477341.81
Bonds payable 13875559119.52 - 13227779162.74 1678701369.86 14906480532.60
Lease liabilities 1387206990.51 - 580490205.45 2626932833.88 3207423039.33
Long-term payables 3198449728.51 - 672259427.79 4652872609.47 5325132037.26
- 168 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE
1. Assets and liabilities measured at fair value at the end of the year
Fair value as at 31/12/2024
Level 1 Level 2 Level 3
Item
Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value
Financial assets held for trading - 5685135472.01 - 5685135472.01
Investments in other equity instruments - - 139451887.05 139451887.05
Other non-current financial assets - - 28524600.31 28524600.31
Total assets continuously measured
-5685135472.01167976487.365853111959.37
at fair value
2. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Fair value as at
Item Valuation techniques Inputs
31/12/2024
Expected rate of
Financial assets held for trading 5685135472.01 Cash flow discounting
return
The fair value of debt instruments at fair value through profit or loss is determined using the cash
flow discounting approach. During the valuation the Group adopts the expected return as the input.
3. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 3 fair value
Fair value as at
Item Valuation techniques Inputs
31/12/2024
Investments in other equity
139451887.05 Net Asset Method Carrying amount
instruments
Other non-current financial assets 28524600.31 Net Asset Method Carrying amount
The fair value of non-listed equity instruments included in equity instruments at fair value through
profit or loss or other comprehensive income is determined using the net asset method.- 169 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE - continued
4. Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and liabilities not measured at fair value mainly include bills receivable
accounts receivable other receivables long-term receivables short-term borrowings bills payable
accounts payable other payables long-term borrowings bonds payable and long-term payables etc.The Group's management believes that the carrying amounts of financial assets and financial
liabilities at amortized cost in the financial statements approximate their fair values.- 170 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Proportion of
Proportion of voting
Related party Place of ownership interests
Name of the Company Type of the entity Nature of business Issued share capital power held by the
relationship registration held by the Company
Company (%)
(%)
Broadford Global Limited Parent Private limited company (share limited) Hong Kong Investment holding HKD 21120986262 2.21 62.96 (Note)
Note: Broadford International Co. Ltd. directly holds 2.21% of the Company's equity and holds 14.83% of the Company's equity through its
subsidiary China Merchants Gangtong Development (Shenzhen) Co. Ltd. For the year ended 31 December 2024 the controlling shareholder
Broadford International Co. Ltd. transferred its 74.66% shares of Honghui (Hong Kong) Co. Ltd. to CMHK and China Merchants Group
Hong Kong entrusted the 74.66% shares of Honghui (Hong Kong) Co. Ltd. obtained from the above transfer to Broadford International Co.Ltd. for management. After the completion of this share transfer and share custody the controlling shareholder of the company will still be
Broadford International Co. Ltd. The ultimate controlling shareholder of the Company is China Merchants Group Co. Ltd..
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in Note (X) 1 Note (XI) 1.- 171 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
3. Associates and joint ventures of the Company
Details of the Company's significant joint ventures and associates are set out in Note (XI) 3.Other joint ventures or associates that have related party transactions with the Group in the current
year or formed balances of related party transactions with the Group in the prior year are as follows:
Name of joint venture or associate Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Qingdao Qianwan West Port United Wharf Co. Ltd. Joint venture
Qingdao Qianwan 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
Euro-Asia Oceangate S.a.r.l. Joint venture
Great Horn Development Company FZCo Associate
International Djibouti Industrial Parks Operation FZCo Associate
Port de Djibouti S.A. Associate
Terminal Link SAS Associate
Tin-Can Island Container Terminal Ltd. Associate
Guizhou Qiandongnan Continental Land Port Operation Co. Ltd. Associate
Nanshan Group and its subsidiaries Associate
Shanggang Group and its subsidiaries Associate
Ningbo Zhoushan and its subsidiaries Associate
Shenzhen Baohong Technology Co. Ltd. Associate
Tianjin Haitian Bonded Logistics Co. Ltd. Associate
Chu Kong River Trade Terminal Co. Ltd. Associate
Shantou Zhonglian Tally Co. Ltd. Associate
Shantou International Container Terminals Limited Associate
Shenzhen Bay Electricity Industry Co. Ltd. Associate
Lac Assal Investment Holding Company Limited Associate
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Associate
Associate controlled by the same
Liaoning Port and its subsidiaries
ultimate controlling shareholder
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Associate
Antong Holdings Co. Ltd. (hereinafter referred to as "Antong Holdings")
Associate
and its subsidiaries
RED SEA WORLD S.A. Associate
- 172 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
Name of other related parties Relationship with the Company
Dalian Port Logistics Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Logistics Network Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Communications Engineering Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Guangdong Co. Ltd. Controlled by the same ultimate controlling shareholder
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate controlling shareholder
South China Sinotrans Supply Chain Management Co. Ltd. Controlled by the same ultimate controlling shareholder
EuroAsia Dockyard Enterprise and Development Limited Controlled by the same ultimate controlling shareholder
Qingdao Bonded Logistics Park Sinotrans Warehousing Logistics
Controlled by the same ultimate controlling shareholder
Co. Ltd.Qingdao Sinotrans Supply Chain Management Co. Ltd. Controlled by the same ultimate controlling shareholder
Penavico Shenzhen Warehousing Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Foreign Forwarding International Freight Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Nanyou (Holdings) Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Qianhai Shekou Free Trade Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants International Shipping Agency (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate Co. Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Merchants to Home Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shenzhen Ro-Ro Shipping Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Commercial Property Investment (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Property Management (Shenzhen) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards (Shekou) Limited Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards Limited Controlled by the same ultimate controlling shareholder
China Merchants International Cold Chain (Shenzhen) Company
Controlled by the same ultimate controlling shareholder
Limited
China Merchants Group Finance Company Limited Controlled by the same ultimate controlling shareholder
China Merchants 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
China Merchants Port Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Group (Hong Kong) Co. Ltd. Controlled by the same ultimate controlling shareholder
- 173 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
Name of other related parties Relationship with the Company
Sinoway Shipping Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Heavy Industry (Jiangsu) Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shantou Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants-Logistics Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Ningbo Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines (Hong Kong) Company Limited Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines Co. Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Port Group Co. Ltd. and its subsidiaries 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 &
Controlled by the same ultimate controlling shareholder
Construction Co. Ltd.Jifa Logistics Controlled by the same ultimate controlling shareholder
Dalian Jifa South Coast International Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Jifa Port Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shipping and Enterprises Company Limited Controlled by the same ultimate controlling shareholder
Ningbo Transocean International Forwarding Agency Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Xingang Kuangshi Terminals Co. Ltd. Controlled by the same ultimate controlling shareholder
Dandong Port Group Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Port and Shipping Digital Technology (Liaoning)
Controlled by the same ultimate controlling shareholder
Co. Ltd.Ocean Driller III Limited Controlled by the same ultimate controlling shareholder
Dalian Ganglong Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Logistics Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Transportation Overseas Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Haida Insurance Brokerage Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Guangxi Co. Ltd. Controlled by the same ultimate controlling shareholder
Zhejiang Youlian Shipbuilding Repair Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Xinzhi Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Surplus Property Management Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Jinling Dingheng Ship (Yangzhou) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Industrial Intelligence Technology (Jiangsu) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Innovation Technology (Group) Co. Ltd. Controlled by the same ultimate controlling shareholder
Hong Kong Haitong Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans South China Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Jingang United Auto International Trade Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Transportation (Hainan) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Logistics Group (Tianjin) Co. Ltd. Controlled by the same ultimate controlling shareholder
Haitong (Shenzhen) Trade Co. Ltd. Controlled by the same ultimate controlling shareholder
CIAO International Limited Controlled by the same ultimate controlling shareholder
Significantly influenced by the ultimate controlling
Shenzhen Wanhai Building Management Co. Ltd.shareholder
Significantly influenced by the ultimate controlling
China Merchants Union (BVI) limited
shareholder
Significantly influenced by the ultimate controlling
Datong Securities Co. Ltd.shareholder
- 174 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
Name of other related parties Relationship with the Company
Significantly influenced by the ultimate controlling
Dalian Automobile Terminal Co. Ltd.shareholder
Significantly influenced by the ultimate controlling
Dalian Port Design Research Institute Co. Ltd.shareholder
Significantly influenced by the ultimate controlling
Khor Ambado FZCo
shareholder
Significantly influenced by the ultimate controlling
China Merchants Bank Co. Ltd.shareholder
Significantly influenced by the ultimate controlling
China Merchants (Shenzhen) Power Supply Co. Ltd.shareholder
Significantly influenced by the ultimate controlling
Merchants Port City
shareholder
5. Related party transactions
(1) Rendering and receipt of services
Pricing method and
decision procedures
Related party Content of transaction 2024 2023
of related
transactions
Rendering of services:
COSCO Logistics (Zhanjiang) Co. Ltd. Service income Negotiation 225947824.45 243101038.82
Anton Holdings and its subordinate companies Service income Negotiation 176859159.34 108978140.94
China Ocean Shipping Agency (Zhanjiang) Co. Ltd. Service income Negotiation 79233370.18 75114485.59
China Marine Shipping Agency Guangdong Co. Ltd. Service income Negotiation 35584126.70 36263254.23
Qingdao Qianwan New United Container Terminal Co. Ltd. Service income Negotiation 24252170.73 69319211.87
China Merchants International Shipping Agency (Shenzhen)
Service income Negotiation 21010835.23 26223978.84
Co. Ltd.Sinotrans Container Lines Co. Ltd. Service income Negotiation 17893748.17 11703055.83
Yiu Lian Dockyards (Shekou) Limited Service income Negotiation 11901121.11 12403540.05
China Ocean Shipping Agency Shenzhen Co. Ltd. Service income Negotiation 11097445.63 6779104.47
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Service income Negotiation 10909073.38 10684159.25
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Service income Negotiation 8885773.90 8632714.51
CIAO International Limited Service income Negotiation 8880824.63 -
China Merchants International Cold Chain (Shenzhen)
Service income Negotiation 7292368.68 7196978.46
Co. Ltd.China Merchants Investment Development Co. Ltd. Service income Negotiation 6943066.05 6905698.13
Sinotrans Container Transportation (Hainan) Co. Ltd. Service income Negotiation 6131576.11 -
China Merchants Logistics Group (Tianjin) Co. Ltd. Service income Negotiation 5648853.04 -
Shenzhen Baohong Technology Co. Ltd. Service income Negotiation 5383991.91 8201361.90
Liaoning Port and its subsidiaries Service income Negotiation 5172690.67 80155659.35
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Service income Negotiation 4288394.23 9724814.72
China Marine Shipping Agency Shenzhen Co. Ltd. Service income Negotiation 4232109.18 4957791.03
Other related parties Service income Negotiation 48711457.81 136002178.51
Terminal Link SAS Interest income Negotiation 12543736.17 138262807.50
Port of Newcastle and its subsidiaries Interest income Negotiation 74581122.68 55424394.92
China Merchants Bank Co. Ltd. Interest income Negotiation 42250797.70 51248973.95
China Merchants Group Finance Company Limited Interest income Negotiation 50639773.07 33052458.75
Tianjin Haitian Bonded Logistics Co. Ltd. Interest income Negotiation 1137311.05 1210342.38
Relocation
China Merchants Real Estate (Shenzhen) Co. Ltd. Negotiation 7000000.00 -
compensation revenue
Total —— —— 914412721.80 1141546144.00
- 175 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Rendering and receipt of services - continued
Pricing method and
Related party Content of transaction decision procedures of 2024 2023
related transactions
Receipt of services:
Shenzhen Bay Electricity Industry Co. Ltd. Service expenditure Negotiation 60383382.87 56553895.23
Shenzhen Nanyou (Holdings) Ltd. Service expenditure Negotiation 36049247.11 37373052.06
Qingdao Qianwan West Port United Wharf Co. Ltd. Service expenditure Negotiation 20836557.33 18954315.25
Hong Kong Haitong Co. Ltd. Service expenditure Negotiation 15893828.70 -
Shenzhen West Port Security Service Co. Ltd. Service expenditure Negotiation 12075631.88 11300450.18
Liaoning Port and its subsidiaries Service expenditure Negotiation 11984893.16 -
International Djibouti Industrial Parks Operation FZCo Service expenditure Negotiation 10914744.17 6264666.66
Sinotrans South China Co. Ltd. Service expenditure Negotiation 9245283.03 -
China Merchants (Shenzhen) Power Supply Co. Ltd. Service expenditure Negotiation 8934659.73 19085551.42
Yiu Lian Dockyards Limited Service expenditure Negotiation 7591973.82 8104140.51
Dalian Jingang United Auto International Trade
Service expenditure Negotiation 6081398.25 -
Co. Ltd.China Merchants Commercial Property Investment
Service expenditure Negotiation 5703597.81 5000000.00
(Shenzhen) Co. Ltd.Nanshan Group and its subsidiaries Service expenditure Negotiation 5572556.91 12922553.88
China Merchants Investment Development
Service expenditure Negotiation 5407766.54 2675141.65
Company Limited
China Merchants Zhangzhou Development Zone
Service expenditure Negotiation 5339186.66 6449368.77
Power Supply Co. Ltd.Shenzhen Foreign Forwarding International
Service expenditure Negotiation 4471086.56 -
Freight Co. Ltd.Hoi Tung (Shanghai) Company Limited Service expenditure Negotiation 4127174.67 5014184.85
Other related parties Service expenditure Negotiation 42819598.21 69625465.22
China Merchants Bank Co. Ltd. Purchase of structured deposits Negotiation 7260000000.00 3180000000.00
China Merchants Group Finance Company Limited Interest expense Negotiation 36451832.93 26303900.66
China Merchants Bank Co. Ltd. Interest expense Negotiation 72154609.24 17596634.76
China Merchants Finance Lease (Tianjin) Co. Ltd. Interest expense Negotiation 3483279.42 2117332.10
China Merchants Finance Lease (Shanghai) Co. Ltd. Interest expense Negotiation 2356009.46 -
Total 7647878298.46 3485340653.20
- 176 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Pricing method and
Lease income Lease income
decision procedures
Name of the lessee Type of leased assets recognized in the recognized in the
of related
current year prior year
transactions
Port and terminal
Qingdao Qianwan West Port United Wharf Co. Ltd. Negotiation 14351518.19 14311677.72
facilities
Qingdao Bonded Logistics Park Sinotrans Warehousing Port and terminal
Negotiation 5375787.11 6680118.90
Logistics Co. Ltd. facilities
China Traffic Import and Export Co. Ltd. Buildings and structures Negotiation 5179670.76 5473072.56
Port and terminal
Qingdao Sinotrans Supply Chain Management Co. Ltd. Negotiation 4811101.79 3438231.48
facilities
Port and terminal
Qingdao Sinotrans Mining Technology Co. Ltd. Negotiation 4750557.12 4750557.12
facilities
Qingdao Qianwan United Container Terminal Co. Ltd. Buildings and structures Negotiation 3332269.56 3323938.08
Haitong (Shenzhen) Trade Co. Ltd. Buildings and structures Negotiation 2811192.84 -
Port and terminal
Qingdao Wutong Century Supply Chain Co. Ltd. Negotiation 2713039.19 2705626.50
facilities
Port and terminal
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Negotiation 2577426.36 2719625.46
facilities
Qingdao Sinotrans Logistics Co. Ltd. Buildings and structures Negotiation 2477668.56 2064723.80
China Merchants Securities Co. Ltd. Buildings and structures Negotiation 2460986.37 2697967.83
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 2149478.11 2268270.47
Nanshan Group and its subsidiaries Buildings and structures Negotiation 1816393.88 2283922.57
China Merchants Food (China) Co. Ltd. Buildings and structures Negotiation 1806760.02 5964675.96
Buildings and
Other related parties structures Port and Negotiation 6659722.39 5928324.10
terminal facilities
Total —— —— 63273572.25 64610732.55
- 177 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties - continued
The Group as the lessee:
Short-term lease expenses or Variable lease payments that
expenses on leases of low-value are not included in the Interest expenses on lease
Rental paid Addition to right-of-use assets
Name of the lessor Type of leased assets assets that are accounted for measurement of lease liabilities
using simplified approach liabilities
2024202320242023202420232024202320242023
China Merchants Finance Lease Machinery and equipment
----72617183.15110343653.602356009.467734573.29--
(Shanghai) Co. Ltd. Port and terminal facilities
Buildings and structures
Nanshan Group and its subsidiaries Port and terminal facilities 458524.82 34242.32 - - 72495152.94 69881796.93 1549113.49 4454094.13 - -
Land use right Others
China Merchants Shekou Industrial Zone Port and terminal facilities
----33671185.0236699122.622627207.771209619.986841334.0991911426.83
Holdings Co. Ltd. Land use right
China Merchants Finance Lease (Tianjin)
Port and terminal facilities - - - - 25037299.24 41997224.42 3627216.64 4035780.92 - -
Co. Ltd.EuroAsia Dockyard Enterprise and
Port and terminal facilities - - - - 16267717.80 14908924.82 452003.87 446855.68 - 14462069.14
Development Limited
Buildings and structures
Others Port and terminal facilities 9931864.47 9885580.01 - - 25353081.02 67503750.43 351374.20 1855436.70 5583342.98 12628928.22
Land use right Others
Total 10390389.29 9919822.33 - - 245441619.17 341334472.82 10962925.43 19736360.70 12424677.07 119002424.19
- 178 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(3) Related party guarantees
The Group as the guarantor:
The guarantee has
Guaranteed
Secured party Credit line Commencement date Maturity been completed or
amount
not
2024
Terminal Link SAS (Note 1) 58245642.59 58245642.59 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 207025920.00 167923750.92 24 May 2019 2032 No
Terminal Link SAS (Note 2) 237217200.00 116236428.00 25 Jan 2023 2030 No
Total 502488762.59 342405821.51 —— —— ——
2023
Terminal Link SAS (Note 1) 76655687.32 76655687.32 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 203981760.00 156254811.86 24 May 2019 2032 No
Terminal Link SAS (Note 2) 114527259.00 114527259.00 25 Jan 2023 2030 No
Total 395164706.32 347437758.18 —— —— ——
Note 1: In previous years CMA CGM S.A. another shareholder of Terminal Link SAS an
associate of the Group provided 100% guarantee for the bank loan financing and other
liabilities of Terminal Link SAS. The Group makes a commitment to CMA CGM S.A. to
provide guarantee for the bank loan financing and other liabilities to Terminal Link SAS
in accordance with the 49% equity ratio of Terminal Link SAS held by the Group. The
actual guaranteed amount is RMB 58245642.59 as at 31 December 2024. If any
guarantee liability occurs the Group will compensate CMA CGM S.A..Note 2: The Group and CMA CGM S.A. provide guarantee for bank loan financing and other
liabilities of the associated company Terminal Link SAS according to their shareholding
ratio. The actual guarantee amount on 31 December 2024 is RMB 116236428.00.Note 3: Khor Ambado FZCo is a related party of the Group's ultimate controlling shareholder. The
Group and other shareholders of Khor Ambado FZCo provide guarantee for its bank loans
and other liabilities the actual amount of which as at 31 December 2024 is RMB
167923750.92.
- 179 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
2024
Borrowings
China Merchants Bank Co. Ltd. 1298369781.25 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 1336953012.50 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 268456381.95 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 59158045.05 Actual borrowing date Agreed repayment date Long-term borrowings
Total 2962937220.75 — — — — — —
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 — — — — — —
Note 1: As at 31 December 2024 the total credit lines of the Group from the related parties China
Merchants Bank Co. Ltd. and China Merchants Group Finance Co. Ltd. are RMB
4463300000.00 and RMB10000000000.00 respectively.
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision procedures of 2024 2023
related transactions
Shantou International Container Reduce of registered
Registered capital 120000000.00 -
Terminals Limited capital
RED SEA WORLD S.A. Equity investment Fair value 160855674.82 -
Dalian Port Container Equity investment Fair value - 57083400.00
Jifa Logistics Equity investment Fair value - 33815300.00
Yingkou Port Group Equity investment Fair value - 19002800.00
Hoi Tung (Shanghai) Company Limited Fixed assets Negotiation 2876106.19 -
Dalian Jingang United Auto
Fixed assets Negotiation 2454981.76 -
International Trade Co. Ltd.Hong Kong Haitong Co. Ltd. Construction in progress Negotiation 15893828.70 -
Other related parties Construction in progress Negotiation 5170708.51 -
Transfer of equity
Ningbo Zhoushan Valuation - 1845000000.00
investment
Transfer of equity
Liaoning Port Valuation - 83027500.00
investment
Total — — — — 307251299.98 2037929000.00
- 180 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(6) Compensation for key management personnel
Item 2024 2023
Compensation for key management personnel 17310521.40 18932731.03
6. Amounts due from/to related parties that have not settled
(1) Amounts due from related parties
Item Related party 31/12/2024 31/12/2023
China Merchants Bank Co. Ltd. 3404002420.98 3778553414.06
Cash and bank balances China Merchants Group Finance Company Limited 4745991554.35 2090078155.93
Total 8149993975.33 5868631569.99
COSCO Logistics (Zhanjiang) Co. Ltd. 12222891.71 1505114.97
Antong Holdings and its subordinate companies 9901450.77 8919131.23
Sinotrans Container Lines Co. Ltd. 4496476.26 2763240.00
China Ocean Shipping Agency Shenzhen Co. Ltd. 3778789.25 2035495.50
China Merchants Investment Development Company Limited 3439600.00 -
China Merchants Logistics Group (Tianjin) Co. Ltd. 3109502.50 -
Sinotrans Container Transportation (Hainan) Co. Ltd. 2350603.78 -
Great Horn Development Company FZCo 2201806.92 2162941.76
Dalian Container Terminal Co. Ltd. 2157150.00 1725150.00
Accounts receivable
China Merchants International Shipping Agency (Shenzhen)
1860650.901750277.36
Co. Ltd.China Marine Shipping Agency Guangdong Co. Ltd. 1641276.39 2765338.38
Merchants Port City 1404084.82 -
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. 1328516.60 -
Sinotrans (HK) Shipping Limited 1188868.03 682942.44
China Marine Shipping Agency Shenzhen Co. Ltd. 1124282.95 -
Other related parties 7451938.55 11177808.69
To tal 59657889.43 35487440.33
- 181 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Item Related party 31/12/2024 31/12/2023
Shanghai Port Group 326565642.25 -
Nanshan Group and its subsidiaries 148056000.00 203577000.00
Merchants Port City 38809044.77 38809044.77
Euro-Asia Oceangate S.a.r.l. 23881469.17 -
China Ocean Shipping Agency Shenzhen Co. Ltd. 10575000.00 11232000.00
Dividends receivable COSCO Logistics (Zhanjiang) Co. Ltd. 5649001.16 13449001.16
Qingdao Wutong Century Supply Chain Co. Ltd. 1190109.26 -
Tin-Can Island Container Terminal Ltd. - 21960680.22
Yingkou Gangxin Technology Co. Ltd. - 23881213.75
Dalian Port Logistics Network Co. Ltd. - 30605256.76
Total 554726266.61 343514196.66
Chu Kong River Trade Terminal Co. Ltd. 37374974.40 36575039.20
Shenzhen Nanyou (Holdings) Ltd. 30639652.92 30639652.92
Shenzhen Qianhai Shekou Free Trade Investment Development
6310000.006310000.00
Co. Ltd.China Merchants Investment Development Company Limited 3837775.52 2830188.69
China Merchants Group (Hong Kong) Co. Ltd. 2300860.48 -
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. 1929055.32 -
Other receivables
EuroAsia Dockyard Enterprise and Development Limited 1565400.24 1531896.04
China Merchants Commercial Property Investment (Shenzhen)
1166408.401166408.40
Co. Ltd.Tin-Can Island Container Terminal Ltd. 1056415.05 1320562.03
PORT DE DJIBOUTI S.A. - 24966517.50
Other related parties 1922371.33 3332541.61
Total 88102913.66 108672806.39
Prepayments Other related parties 306332.45 250084.22
Tianjin Haitian Bonded Logistics Co. Ltd. 34300000.00 -
China Merchants Finance Lease (Tianjin) Co. Ltd. 733025.11 3800000.00
Non-current assets due
Terminal Link SAS - 7468849.83
within one year
China Merchants Finance Lease (Shanghai) Co. Ltd. - 6200000.00
Total 35033025.11 17468849.83
Port of Newcastle and its subsidiaries 920674796.27 921402438.00
Terminal Link SAS 215013954.38 204299511.52
China Merchants Finance Lease (Tianjin) Co. Ltd. 720170.57 695876.01
Long-term receivables
Zhoushan Blue Ocean Investment Co. Ltd. 338124.80 4996989.39
Tianjin Haitian Bonded Logistics Co. Ltd. - 34300000.00
Total 1136747046.02 1165694814.92
- 182 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Item Related party 31/12/2024 31/12/2023
China Merchants Bank Co. Ltd. 1298369781.25 1150880891.67
Short-term borrowings China Merchants Group Finance Company Limited 180132916.65 200176534.70
Total 1478502697.90 1351057426.37
Antong Holdings and its subordinate companies 17869057.61 20360897.30
Khor Ambado FZCo 14376800.00 22639585.37
Nanshan Group and its subsidiaries 7757550.49 5968662.37
Sinotrans South China Co. Ltd. 7731300.00 -
China Merchants (Shenzhen) Power Supply Co. Ltd. 7491614.83 -
Shenzhen Bay Electricity Industry Co. Ltd. 5886136.82 5394353.74
China Merchants Port and Shipping Digital Technology
4785479.042905000.00
(Liaoning) Co. Ltd.China Merchants Xinzhi Technology Co. Ltd. 2695000.00 -
Accounts payable Qingdao Qianwan West Port United Wharf Co. Ltd. 2302401.72 4066438.84
China Merchants Port Investment Development Company
1916766.441649069.28
Limited
Yiu Lian Dockyards Limited 1831651.56 1135115.31
EuroAsia Dockyard Enterprise and Development Limited 1562589.15 2413589.56
Dalian Port Logistics Technology Co. Ltd. 166521.32 17607121.00
Dalian Port Logistics Network Co. Ltd. - 8355644.80
Dalian Ganglong Technology Co. Ltd. - 2739450.00
Other related parties 3535354.94 4803051.61
Total 79908223.92 100037979.18
Other related parties 1020627.96 196301.30
Advance payments
China Merchants Investment Development Company Limited - 5358074.44
received
Total 1020627.96 5554375.74
Other related parties 990669.32 3214834.92
COSCO Logistics (Zhanjiang) Co. Ltd. - 4552313.24
Contract liabilities
Qingdao Sinotrans Supply Chain Management Co. Ltd. 1464429.12
Total 990669.32 9231577.28
China Merchants Zhangzhou Development Zone Co. Ltd. 79792513.04 77734806.46
Zhanjiang Infrastructure Construction Investment Group Co.Ltd. 52542231.24 -
Dalian Port Container - 16160696.61
Dividends payable
Jifa Logistics - 9575104.42
Yingkou Port Group - 5372456.78
Yiu Lian Dockyards Limited - 2334150.00
Total 132334744.28 111177214.27
Lac Assal Investment Holding Company Limited 81768095.74 64310900.95
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 6930409.58 -
Antong Holdings and its subordinate companies 4743266.37 4743266.37
China Merchants Port Investment Development Company
Other payables
Limited 3559625.15 -
Bayesian Computing (Tianjin) Information Technology Co.Ltd. 3458400.00 -
CI AO International Limited 2999920.00 -
- 183 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties - continued
Item Related party 31/12/2024 31/12/2023
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. 2975713.65 5000000.03
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1744765.30 1690130.78
Nanshan Group and its subsidiaries 1487524.53 -
Other related parties 12615452.63 9420961.74
Other payables
Terminal Link SAS - 10423425.44
China Merchants Real Estate (Shenzhen) Co. Ltd. - 10079369.00
China Merchant Food (China) Co. Ltd. - 1069017.00
China Traffic Import and Export Co. Ltd. - 1055975.76
Total 122283172.95 107793047.07
China Merchants Group Finance Company Limited 153940240.06 288071994.22
China Merchants Bank Co. Ltd. 115025994.45 199326195.84
China Merchants Finance Lease (Tianjin ) Co. Ltd. 40241960.67 7548329.72
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 37080955.45 35719107.95
EuroAsia Dockyard Enterprise and Development Limited 14776413.72 -
Non-current liabilities Baosteel Zhanjiang Iron&Steel Co.Ltd. 1741135.31 -
due within one year Other related parties 843949.71 375528.56
Nanshan Group and its subsidiaries - 63331699.85
China Merchants Commercial Property Investment (Shenzhen)
Co. Ltd. - 6396788.04
China Merchants Finance Lease (Shanghai) Co. Ltd. - 76461173.65
Total 363650649.37 677230817.83
China Merchants Bank Co. Ltd. 1316000000.00 158000000.00
Long-term borrowings China Merchants Group Finance Company Limited 658012389.53 721624592.13
Total 1974012389.53 879624592.13
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 32067795.24 62185360.58
China Merchants International Cold Chain (Shenzhen)
Lease liabilities Company Limited 1182801.92 -
Other related parties - 1070904.61
Total 33250597.16 63256265.19
Long-term payables China Merchants Finance Lease (Tianjin) Co. Ltd. 31964366.45 33905690.32
(XVI) SHARE-BASED PAYMENTS
1. Equity instruments
Type of Granted in the current Exercised in the current
Unlocked in the current year Lapsed in the current year
targets year year
granted Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - 2233820.00 7276001.00 3797080.00 12401407.00 49200.00 159900.00
- 184 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(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 13.25 to RMB 15.50 25 months
2. Equity-settled share-based payments
The method used to determine the fair value of equity instruments The cost of granted stock options was estimated
at the grant date using the Black Scholes Model.At each balance sheet date in the vesting period
the best estimate was made and the estimated
number of exercisable equity instruments was
The basis for determining the number of exercisable equity instruments
modified according to the latest changes in the
number of employees who can exercise the rights
and other subsequent information.Reasons for the significant difference between the estimates
Nothing
of the current year and the estimates of prior year
The aggregate amount of equity-settled share-based payments that is
506305.80
included in capital reserve
Pursuant to the Official Reply on the Implementation of the Stock Option Incentive Plan of China
Merchants Port Group Co. Ltd. by State-owned Assets Supervision and Administration
Commission of the State Council (No. 748 [2019] SASAC) which was deliberated and approved
by the 1st Extraordinary General Meeting of the Company in 2020 on 3 February 2020 the Company
implemented a stock option plan with effect from 3 February 2020 to grant 238 incentive recipients
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.- 185 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments - continued
According to Article 32 of Stock Option Incentive Plan since the grant date of the stock option if
the Company distributes dividends prior to the exercise of the option the exercise price shall be
adjusted accordingly. Therefore the Company uniformly adjusted the exercise price from
RMB17.80 per share to 17.34 per share in respect of the first batch of stock option granted under
the stock option incentive plan (phase I) on 30 January 2021; the Company uniformly adjusted the
exercise price from RMB 17.34 per share to 16.96 per share in respect of the first batch of stock
option granted under the stock option incentive plan (phase I) and the exercise price of the reserved
portion of stock option from RMB 15.09 per share to 14.71 per share on 29 January 2022; the
Company uniformly adjusted the exercise price from RMB 16.96 per share to 16.53 per share in
respect of the first batch of stock option granted under the stock option incentive plan (phase I) and
the exercise price of the reserved portion of stock option from RMB 14.71 per share to 14.28 per
share on 20 January 2023. Company uniformly adjusted the exercise price from RMB 16.53 per
share to 16.08 per share in respect of the first batch of stock option granted under the stock option
incentive plan (phase I) and the exercise price of the reserved portion of stock option from RMB
14.28 per share to 13.83 per share on 16 January 2024. Company uniformly adjusted the exercise
price from RMB 16.08 per share to 15.50 per share in respect of the first batch of stock option
granted under the stock option incentive plan (phase I) and the exercise price of the reserved portion
of stock option from RMB 13.83 per share to 13.25 per share on 31 August 2024.As at the date on which the financial statements are issued as 2 of the incentive targets for the first
batch of stock option granted under the stock option incentive plan (phase I) have lost the
qualification to participate in the company's incentive plan the board of directors of the Company
decided to cancel in total of 49200 shares of stock option granted but not yet exercised by such
persons.As at the date on which the financial statements are issued 193 incentive targets who can exercise
the rights for the third vesting period of the stock option (1st batch) under the stock option incentive
plan (phase I) included: (1) 188 incentive targets who met the designated grades in the performance
assessment holding 100% of the stock option (totalling 3422400 shares) for the third vesting
period of the stock option (1st batch) under the stock option incentive plan (phase I) of the Company
and satisfying the criteria of exercise; and (2) 5 incentive targets who met the designated grades in
the performance assessment holding 80% of the stock option (totalling 60480 shares) for the third
vesting period of the stock option (1st batch) under the stock option incentive plan (phase I) of the
Company and satisfying the criteria of exercise. The second vesting period of the stock option
(reserved portion) under the stock option incentive plan (phase I) targets to total 3 persons who can
exercise the rights. The 3 incentive targets have met the designated grades in the performance
assessment and 100% of stock option for the second vesting period of the stock option (reserved
portion) under the stock option incentive plan (phase I) of the Company held by them have satisfied
the criteria of exercise granting 265000 shares of exercisable stock option for the second vesting
period of the stock option (reserved portion) under the stock option incentive plan (phase I).- 186 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
3. Share-based payment expenses in the current year
Type of targets granted Equity-settled share-based payment expenses
Management 264766.44
(XVII) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item 31/12/2024 31/12/2023
Commitments that have been entered into but have not
been recognized in the financial statements
- Commitment to make contributions to the investees 68882165.47 467604906.76
- Commitment to acquire and construct long-term assets 2891660439.17 2407538867.35
Total 2960542604.64 2875143774.11
2. Contingencies
Item 31/12/2024 31/12/2023
Contingent liabilities brought by external litigations (Note 1) 804570710.82 946218359.48
Guarantee for borrowings of related parties (Note 2) 342405821.51 347437758.18
Total 1146976532.33 1293656117.66
Note 1: This mainly represents the significant contingent liabilities arising from the litigations
between TCP and its subsidiaries and local tax authority employee or former employee
of TCP and its subsidiaries in Brazil at as the year end. The amount involved in the pending
litigation is RMB 804570710.82. At the same time for the pending litigation existing
before the Group's acquisition of TCP the counter compensation agreement in favour of
the Group will be executed by the original TCP shareholders who sell shares. According
to the counter compensation agreement the original TCP shareholders need to compensate
the Group for contingent liabilities and the amount of compensation should not exceed
the predetermined amount and the specified period. According to the latest estimates of
the management of the Company the above pending litigation is unlikely to lead to the
outflow of economic benefits from the enterprise. Therefore the Group has not recognized
the estimated liabilities for the contingent liabilities caused by the above pending litigation.- 187 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies - continued
Note 2: As at 31 December 2024 the guarantees provided by the Group for related parties are
detailed in Note (XV) 5.As at 31 December 2024 the directors of the Company evaluated the default risks of
related companies on the above-mentioned loan financing and other liabilities and
believed that the risks were not significant and the possibility of guaranteed payments was
very low.Except for the above-mentioned contingencies as at 31 December 2024 the Group had no other
major guarantees and other contingencies that need to be explained.(XVIII) EVENTS AFTER THE BALANCE SHEET
According to the profit distribution plan for 2024 and as approved by the 4th meeting of the 11th
board of directors on 1 April 2025 the Company based on the total share capital after deducting
the number of shares held in the special repurchase account of 2490229307 as at 24 March 2025
distributes cash dividends at RMB 7.40 (inclusive of tax) for every 10 shares totalling RMB
1842769687.18. 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.- 188 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(1) Basis for determining reporting segments and accounting policies - continued
Ports operation - continued
The Group's ports operation is presented as follows:
(a) Mainland China Hong Kong and Taiwan
Pearl River Delta
Yangtze River Delta
Bohai Rim
Others
(b) Other locations outside of Mainland China Hong Kong and Taiwan
Bonded logistics operation
Bonded logistics operation includes logistics park operation ports transportation and airport cargo
handling operated by the Group and its associates and joint ventures.Other operations
Other operations mainly include property development and investment and logistics business
operated by the Group's associates property investment operated by the Group and corporate
function.Each of the segments under ports operation includes the operations of a number of ports in various
locations within one geographic location. For the purpose of segment reporting these individual
operating segments have been aggregated into reportable segments on geographic basis in order to
present a more systematic and structured segment information. To give details of each of the
operating segments in the opinion of the directors of the Company would result in particulars of
excessive length.Bonded logistics operation and other operations include a number of different operations each of
which is considered as a separate but insignificant operating segment by the CODM. For segment
reporting these individual operating segments have been aggregated according to the nature of their
operations to give rise to more meaningful presentation.There are no material sales or other transactions between the segments.The revenue from a major customer of ports operation amounts to RMB 2298041181.02
representing 14.25% (2023: 12.74%) of the Group's operating income for 2024.- 189 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments
Segment financial information for 2024 is as follows:
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics
Item Others Unallocated amount Total
Yangtze River Other locations Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Operating income 6431616103.24 1244488.00 35429691.48 3443761318.55 5450560759.22 15362612360.49 581135985.94 187029681.81 - 16130778028.24
Operating costs 3643704953.94 7879940.23 21554240.31 2549974747.42 2427214953.44 8650328835.34 321819100.85 223868756.16 - 9196016692.35
Segment operating profit (“-” for
2787911149.30-6635452.2313875451.17893786571.133023345805.786712283525.15259316885.09-36839074.35-6934761335.89
losses)
Taxes and surcharges 36099143.56 1108732.05 1142301.89 53246818.52 188035503.59 279632499.61 26824541.00 24354678.99 1522043.55 332333763.15
Administrative expense 441642697.27 3306900.14 13422831.03 528149064.56 300139650.63 1286661143.63 75409818.29 1125717.14 458347603.12 1821544282.18
R&D expenses 175109423.61 - - 26645642.75 - 201755066.36 - - - 201755066.36
Financial expenses 37387836.75 7762806.23 -299175.51 88123829.70 254737267.23 387712564.40 -4790361.01 14653358.03 1459790075.45 1857365636.87
Other income 143256859.08 1225442.53 26641.94 29233233.29 - 173742176.84 11444551.72 223574.73 - 185410303.29
Investment income (“-” for losses) 132466129.59 5278531361.17 344928827.95 449467610.73 592968393.40 6798362322.84 99910880.05 -374726770.23 23450098.84 6546996531.50
Including: Investment income from
54377294.475315828512.05308915198.02443732105.49592968393.406715821503.4399910880.05-374726770.23-6441005613.25
associates and joint ventures
Gains from changes in fair value
36202805.35-348884984.491166382.24-386254172.08-2172987.581805205.49390232365.15
(“-” for losses)
Reversal of/(Losses on)
-2173136.38---96866918.68309219962.77210179907.7163614401.37-800000.00-272994309.08
credit impairment
Impairment losses (“-” for losses) -767306.24 - - - - -767306.24 - -8113482.64 - -8880788.88
Gains from asset disposals (“-” for
2100085.81--108483.2735115963.87-3054695.6534052870.7653074.13--43549.1434062395.75
losses)
Operating profit (“-” for losses) 2408757485.32 5260942913.05 693341464.87 615737487.05 3179567044.85 12158346395.14 336895794.08 -458216519.07 -1894447966.93 10142577703.22
- 190 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2024 is as follows: - continued
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics
Item Others Unallocated amount Total
Yangtze River Other locations Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 14854852.86 56603.78 494224.01 12062080.43 25247186.94 52714948.02 123746.37 958639.58 5221321.35 59018655.32
Non-operating expenses 7303147.15 8273.40 - 11096299.32 41686171.97 60093891.84 18742.91 12929.40 10126537.58 70252101.73
Total profit (“-” for losses) 2416309191.03 5260991243.43 693835688.88 616703268.16 3163128059.82 12150967451.32 337000797.54 -457270808.89 -1899353183.16 10131344256.81
Income tax expenses 365999294.40 201089604.04 93283248.35 58529808.00 498880170.41 1217782125.20 40781729.30 -5407160.82 -318746.78 1252837946.90
Net profit (“-” for losses) 2050309896.63 5059901639.39 600552440.53 558173460.16 2664247889.41 10933185326.12 296219068.24 -451863648.07 -1899034436.38 8878506309.91
Segment assets 26481857320.70 61773227599.24 9089898859.40 27215990680.75 41379476385.11 165940450845.20 4728601803.38 17454804395.36 13393994837.51 201517851881.45
Total assets in the financial statements 201517851881.45
Segment liabilities 7005450645.63 1432965514.91 155616589.06 6879752045.97 6573177512.48 22046962308.05 520327840.86 478408300.92 50313714657.37 73359413107.20
Total liabilities in the financial statements 73359413107.20
Supplementary information:
Depreciation and amortization 1101974370.36 5227042.20 909172.37 880034559.48 953267886.64 2941413031.05 94938612.00 194188349.73 36732644.12 3267272636.90
Interest income 44376828.93 528801.58 435955.95 15351650.68 191275463.28 251968700.42 4716104.32 1208189.24 219537326.43 477430320.41
Interest expense 84380450.90 8265931.82 - 103358149.34 292588128.85 488592660.91 7626009.14 12338219.71 1706662228.76 2215219118.52
Investment income from
long-term equity investments 54377294.47 5315828512.05 308915198.02 443732105.49 592968393.40 6715821503.43 99910880.05 -374726770.23 - 6441005613.25
under equity method
Long-term equity investments
1800864231.4759463859786.269035598922.911625511203.4612422348899.5484348183043.641783293756.6713886553094.65-100018029894.96
under equity method
Non-current assets other than
19044348224.36393057726.7014332679.8020423093188.6625146123941.5665020955761.082664151796.283292646256.39649834176.0571627587989.80
long-term equity investments
- 191 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2023 is as follows:
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics Unallocated
Item Others Total
Yangtze River Other locations Sub-total operation amount
Pearl River Delta Bohai Rim Others
Delta
Operating income 6075691801.01 557788311.93 76760801.96 3574402653.20 4751630018.56 15036273586.66 532670444.04 181531749.52 - 15750475780.22
Operating costs 3640281453.34 361926675.75 63825074.56 2648882080.97 2081165945.51 8796081230.13 289816313.93 232289163.69 - 9318186707.75
Segment operating profit (“-” for
2435410347.67195861636.1812935727.40925520572.232670464073.056240192356.53242854130.11-50757414.17-6432289072.47
losses)
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 (“-” for
130131600.034956167513.13416731511.2450706320.64454900989.676008637934.7159521957.15245264989.0535252059.896348676940.80
losses)
Including: Investment income
from associates and joint 44963451.52 4750830911.12 375529615.82 47995671.63 454900989.67 5674220639.76 59521957.15 245264989.05 - 5979007585.96
ventures
Gains from changes in fair value
102777832.55-58125015.2480543109.95-6584009.33-118611917.93-57875873.699644865.102971891.1873352800.52
(“-” for losses)
Reversal of/(Losses on) credit
7327814.78-36129.03-3468262.80-7171766.683588181.8733695859.31--37284041.18
impairment
Impairment losses (“-” for
-1091994.67-189030229.12---1175087.49-191297311.28----191297311.28
losses)
Gains from asset disposals (“-”
6196256.45--7362.2234965994.86507804.3141662693.40-602074.20-4253879.72-47206.8736759532.61
for losses)
Operating profit (“-” for losses) 2119862035.36 4841122292.48 497751906.58 374114121.64 2597232594.49 10430082950.55 212805471.68 153886100.42 -1987811767.36 8808962755.29
- 192 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2023 is as follows: - continued
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics Unallocated
Item Others Total
Yangtze River Other locations Sub-total operation amount
Pearl River Delta Bohai Rim Others
Delta
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 (“-” for losses) 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 (“-” for losses) 1647056994.84 4583038320.19 453984210.96 303955719.46 2195829562.18 9183864807.63 177211628.92 126435972.89 -1991900323.68 7495612085.76
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
1764751439.0355844039253.088777428828.421715660813.0812507306667.4880609187001.091756185613.1714300745162.01-96666117776.27
under equity method
Non-current assets other than
18193324391.19398488128.1614938012.9320908386344.6026031938950.6365547075827.512381793244.494753153217.29419380677.7873101402967.07
long-term equity investments
- 193 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
The Group's total revenue from external transactions in Mainland China and other countries and
regions and total non-current assets other than financial assets and deferred tax assets located in
Mainland China and other countries and regions are presented as follows:
Revenue from external transactions 2024 2023
Mainland China Hong Kong and Taiwan 10621214882.76 10958608605.93
Pearl River Delta 6989210788.24 6600817552.32
Yangtze River Delta 1244488.00 557788311.93
Bohai Rim 186998287.97 225600088.48
Others 3443761318.55 3574402653.20
Other locations 5509563145.48 4791867174.29
Total 16130778028.24 15750475780.22
Total non-current assets 31/12/2024 31/12/2023
Mainland China Hong Kong and Taiwan 131164149562.93 128859143257.19
Pearl River Delta 38760830551.24 40390524565.51
Yangtze River Delta 59856917512.96 56242527381.24
Bohai Rim 9537186598.85 9297697381.31
Others 23009214899.88 22928393929.13
Other locations 40481468321.83 40908377486.15
Total 171645617884.76 169767520743.34
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
4945574524.17 accounting for 30.66% of the Group's operating income.
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Other receivables
1.1 Summary of other receivables
Item 31/12/2024 31/12/2023
Dividends receivable 965690879.89 167092526.14
Other receivables 1447751781.79 1575369144.18
Total 2413442661.68 1742461670.32
- 194 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.2 Dividends receivable
(1) Dividends receivable listed by aging
Impaired or not
Reason for and the
Investee 31/12/2024 31/12/2023
outstanding determination
basis
Dividend receivable aged less than 1 year 816439596.16 19195762.26 —— ——
Including: Port Development (Hong Kong) Co. Ltd. 805654800.00 - —— No
Chiwan Shipping (Hong Kong) Limited 209796.16 3205094.23 —— No
China Ocean Shipping Agency Shenzhen
10575000.00 11232000.00 —— No
Co. Ltd.China Merchants International
- 4758668.03 —— No
Technology Co. Ltd.Dividend receivable aged more than 1 year 149251283.73 147896763.88 —— ——
Relevant procedures
are being handled
Including: Wharf Holdings Hong Kong 147680363.88 147680363.88 and past dividends No
are being paid in
succession
Relevant procedures
are being handled
Chiwan Shipping (Hong Kong) Limited 1354519.85 - and past dividends No
are being paid in
succession
Others 216400.00 216400.00 Lack of funds No
Sub-total 965690879.89 167092526.14 —— ——
Less: Provision for bad debts - - —— ——
Total 965690879.89 167092526.14 —— ——
- 195 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.3 Other receivables
(1) Aging analysis of other receivables
31/12/202431/12/2023
Item Proportion Provision for Proportion Provision for
Book value Book value
(%) bad debts (%) bad debts
Within 1 year
1447405298.8299.95-910122251.7357.75-
(including 1 year)
1 to 2 years (including
18167.50--662450976.9842.04-
2 years)
2 to 3 years (including
---2467600.000.16-
3 years)
More than 3 years 7172.07 0.05 38456.0 7172.07 0.05 383456.60
Total 1448135238.39 100.00 38456.0 1575752600.78 100.00 383456.60
(2) Disclosure of other receivables by nature
Item 31/12/2024 31/12/2023
Amounts due from related parties 1438029807.71 1553447353.90
Advance payments 5779708.72 4965337.56
Others 4325721.96 17339909.32
Sub-total 1448135238.39 1575752600.78
Less: Provision for bad debts 383456.60 383456.60
Total 1447751781.79 1575369144.18
- 196 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
1. Other receivables - continued
1.3 Other receivables - continued
(3) Provision for bad debts of other receivables
Book value Provision for bad debts
Expected
Credit Aging Aging Carrying Reason for
credit loss
rating More than 3 Within 1 More than 3 amount provision
rate (%) Within 1 year 1-2 years 2-3 years Total 1-2 years 2-3 years Total
years year years
A 0.00-0.10 1447405298.82 18167.50 - 328315.47 1447751781.79 - - - - - 1447751781.79 ——
B 0.10-0.30 - - - - - - - - - - - ——
C 0.30-50.00 - - - - - - - - - - - ——
Not
50.00-
D - - - 383456.60 383456.60 - - - 383456.60 383456.60 - expected to
100.00
be recovered
Total 1447405298.82 18167.50 - 711772.07 1448135238.39 - - - 383456.60 383456.60 1447751781.79 ——
- 197 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.3 Other receivables - continued
(4) Provision recovery and reversal of credit impairment of other receivables
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
As at 1 January 2024 - - 383456.60 383456.60
Balance of other receivables
as at 1 January 2024
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
As at 31 December 2024 - - 383456.60 383456.60
(5) Details of bad debt provision
Changes for the year
Effect of
Charge-off
Category 31/12/2023 Recovery or changes in Other 31/12/2024
Provision or write-
reversal the scope of changes
off
consolidation
Provision for bad debts
assessed on an 383456.60 - - - - - 383456.60
individual basis
Provision for bad debts
assessed on a portfolio - - - - - - -
basis
Total 383456.60 - - - - - 383456.60
(6) The Company has no recovery or reversal of significant provision for bad debts in the
current year.- 198 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.3 Other receivables - continued
(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 Provision
Relationship to total for bad
Carrying
Name of entity with the Nature Aging other debts at
amount
Company receivables the end of
(%) the year
Loan to
Wharf Holdings Hong Kong Related parties 1438029807.71 Within 1 year 99.30 -
related parties
China Merchants Investment Advance
Related parties 3837775.52 Within 1 year 0.27 -
Development Company Limited payments
China Securities Depository and
Clearing Corporation Limited Third party Others 2149711.30 Within 1 year 0.15 -
Shenzhen Branch
Shenzhen Shekou Local Taxation More than 3
Third party Others 711772.07 0.05 -
Bureau years
CNOOC Sales Shenzhen Co. Ltd. Third party Others 35880.59 Within 1 year 0.00 -
Total —— —— 1444764947.19 —— 99.77 -
- 199 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Long-term equity investments
(1) Breakdown of long-term equity investments
Changes for the year
Provision for
Investment income Other Cash dividends
Investee 31/12/2023 Other equity Provision for 31/12/2024 impairment at the
Increase Decrease under equity comprehensive or profit Others
movements impairment end of the year
method income declared
I. Subsidiaries
Wharf Holdings Hong Kong 1070000.00 - - - - - - - - 1070000.00 -
Chiwan Shipping (Hong Kong) Limited 1051789.43 - - - - - - - - 1051789.43 -
Chiwan Container Terminal Co. Ltd. 421023199.85 - - - - - - - - 421023199.85 -
Dongguan Shenchiwan Port Affairs Co. Ltd. 186525000.00 - - - - - - - - 186525000.00 -
Dongguan Shenchiwan Wharf Co. Ltd. 175000000.00 - - - - - - - - 175000000.00 -
Ports Development (Hong Kong) Limited 29203045326.23 - - - - - - - - 29203045326.23 -
Shunkong Port (Note 1) 194673400.00 45339800.00 - - - - - - - 240013200.00 -
Guangdong Yide Port Co. Ltd. 131866700.00 - - - - - - - - 131866700.00 -
Sanya Merchants Port Development Co. Ltd. 2040000.00 - - - - - - - - 2040000.00 -
Shenzhen Chiwan Harbor Container Co. Ltd. 250920000.00 - - - - - - - - 250920000.00 -
Shenzhen Chiwan Port Development Co. Ltd. 206283811.09 - - - - - - - - 206283811.09 -
Shenzhen Chiwan International Freight Agency
5500000.00--------5500000.00-
Co. Ltd.Shenzhen Chiwan Tugboat Co. Ltd. 24000000.00 - - - - - - - - 24000000.00 -
Zhanjiang Port 3381825528.52 - - - - - - - - 3381825528.52 -
Zhoushan RoRo 106104786.00 - - - - - - - - 106104786.00 43605014.00
CM Port (Note 2) 181316161.41 163260.82 - - - - - - - 181479422.23 -
CM International Tech 130462575.02 - - - - - - - - 130462575.02 -
Sub-total 34602708277.55 45503060.82 - - - - - - - 34648211338.37 43605014.00
II. Associates
Antong Holdings 922332364.58 - - 41664538.16 - - - - - 963996902.74 -
Ningbo Zhoushan 16813664839.73 - - 1030682677.97 23261592.67 35887971.57 -371449726.01 - - 17532047355.93 -
China Merchants Bonded Logistics Co. Ltd. 382205734.47 - - 58262622.73 - - -47284052.37 - - 393184304.83 -
China Merchants Northeast Asia Development &
1018534351.56--3368318.48-2562.75---1021905232.79-
Investment Co. Ltd.Sub-total 19136737290.34 - - 1133978157.34 23261592.67 35890534.32 -418733778.38 - - 19911133796.29 -
III. Joint ventures
Fujian Zhaohang Logistics Management Partnership
614726959.48--23131989.57-----637858949.05-
(Limited Partnership)
Shenzhen Gangteng Internet Technology Co. Ltd. 11918626.99 - - -3692644.11 - - - - - 8225982.88 -
Yantai Port Group Laizhou Port Co. Ltd. 802527184.43 - - 1164090.28 104000.00 56831.00 - - - 803852105.71 -
Sub-total 1429172770.90 - - 20603435.74 104000.00 56831.00 - - - 1449937037.64 -
Total 55168618338.79 45503060.82 - 1154581593.08 23365592.67 35947365.32 -418733778.38 - - 56009282172.30 43605014.00
- 200 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
2. Long-term equity investments - continued
(1) Breakdown of long-term equity investments - continued
Note 1: 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 in 2023 the remaining amount paid this year
is RMB 45339800.00. The shareholding ratio of the two investors remained unchanged
after the capital increase.Note 2: Details are set out in Note (XI) 1 (1).
3. Operating income and operating costs
20242023
Item
Income Cost Income Cost
Principal operation - - - -
Other operations 18456183.80 3739443.84 17326885.29 3686411.84
Total 18456183.80 3739443.84 17326885.29 3686411.84
- 201 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
4. Investment income
(1) Details of investment income
Item 2024 2023
Income from long-term equity investments under cost method 1259829095.19 416405658.26
Income from long-term equity investments under equity
1154581593.081111522805.93
method
Income from financial assets held for trading 28210701.38 49614971.08
Income from investments in other equity instruments 10575000.00 20056500.00
Total 2453196389.65 1597599935.27
(2) Income from long-term equity investments under cost method
Investee 2024 2023 Reason for changes
CM Port 10475154.15 11184689.72 Changes in profit distribution of investee
Chiwan Container Terminal Co. Ltd. 124392799.44 149527479.94 Changes in profit distribution of investee
Zhanjiang Port 83925753.46 36552790.18 Changes in profit distribution of investee
CM International Tech - 9517336.07 Changes in profit distribution of investee
Shenzhen Chiwan Harbor Container Co. Ltd. 143167589.81 111712423.41 Changes in profit distribution of investee
Shenzhen Chiwan Tugboat Co. Ltd. 28061835.33 20137075.44 Changes in profit distribution of investee
Dongguan Shenchiwan Wharf Co. Ltd. 42509038.50 33386741.74 Changes in profit distribution of investee
Shenzhen Chiwan International Freight Agency
957771.62 212854.30 Changes in profit distribution of investee
Co. Ltd.Dongguan Shenchiwan Port Affairs Co. Ltd. 13703850.69 26519896.50 Changes in profit distribution of investee
Shenzhen Chiwan Port Development Co. Ltd. 3409806.03 9751697.73 Changes in profit distribution of investee
Chiwan Shipping (Hong Kong) Limited 209796.16 7902673.23 Changes in profit distribution of investee
Sanya Merchants Port Development Co. Ltd. 3360900.00 - Changes in profit distribution of investee
Ports Development (Hong Kong) Limited 805654800.00 - Changes in profit distribution of investee
Total 1259829095.19 416405658.26
1. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
In accordance with the China Securities Regulatory Commission's Compilation Rules for Information
Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and
Disclosure of Return on Net Assets and Earnings per Share (revised in 2010) the weighted average return
on net assets basic earnings per share and diluted earnings per share of the Group for the year ended 31
December 2024 are as follows:
Weighted average EPS
Profit in reporting period
return on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 7.5087 1.8064 1.8061
Net profit attributable to ordinary shareholders after
6.72851.61871.6184
deducting non-recurring profit or loss
- 202 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2024
2. BREAKDOWN OF NON-RECURRING PROFIT OR LOSS
In accordance with the provisions of China Securities Regulatory Commission's Explanatory
Announcement No. 1 on Information Disclosure for Companies Making Public Offering - Non-recurring
Profit or Loss (Revised in 2023) the Group's non-recurring profit and loss for the year ended 31 December
2024 is as follows:
Item Amount Remark
Gains or losses on disposal of non-current assets including those charged off for
20221030.12
which provision for impairment of assets has been made
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
131947787.92
enjoyed under established standards and have a continuous impact
on the Company's profit or loss)
Income earned from lending funds to non-financial institutions and recognized
88262169.90
in profit or loss
The excess of attributable fair value of identifiable net assets over the
-
consideration paid for subsidiaries associates and joint ventures
Gains or losses on exchange of non-monetary assets -
Gains or losses on entrusted investments or asset management -
Losses on assets due to force majeure e.g. natural disasters -
Gains or losses on debt restructuring -
Lump-sum costs incurred by the enterprises as a result of the discontinuation of
-
relevant business activities e.g. expenditure for layoff of employees etc.Gains from transactions with unfair transaction price -
Net profit or loss of subsidiaries recognized as a result of business combination of
enterprises under common control from the beginning of the year up to the -
business combination date
Gains or losses arising from contingencies other than those related
-
to normal operating business
Gains or losses from changes in fair value of financial assets and financial
liabilities held by non-financial enterprises other than effective hedging operation
449311363.27
relating to the Company's normal operations and gains or losses from disposal of
financial assets and financial liabilities
Reversal of provision for accounts receivable that are tested for
380331461.37
impairment individually
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 2607919.22
Other profit or loss that meets the definition of non-recurring profit or loss -
Sub-total 1072681731.80
Tax effects -125198868.45
Effects of non-controlling interests (after tax) -478213147.90
Total 469269715.45
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